NoL203/28 OfficialJournaloftheEuropeanCommunities 27.7.78
COMMISSION RECOMMENDATION No1758/78/ECSC
of26July1978
imposingadefinitiveanti-dumping dutyoncertainangles,shapesandsections
ofironorsteel,originatinginSpain
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
CoalandSteelCommunity ,andinparticularArticles
74and86thereof,
HavingregardtoCommission recommendation
77/329/ECSCof15April1977onprotectionagainst
dumpingorthegrantingofbountiesorsubsidiesby
countrieswhicharenotmembersoftheEuropean
CoalandSteelCommunity('),asamendedbyrecom­
mendationNo3004/77/ECSC(2),andinparticular
Articles17and19thereof,
HavingheardtheopinionsexpressedwithintheAdvi­
soryCommitteeprovidedforbyrecommendation
77/329/ECSC,
WhereastheCommission hasreceivedacomplaint,
submittedinthenameoftherelevantCommunity
industry,settingoutevidenceastotheexistenceof
dumpingofcertainangles,shapesandsectionsofiron
orsteel,originatinginSpainandcertainothercoun­
tries,andmaterialinjuryresultingtherefrom ;
Whereas,sincetheinformation receivedindicated
thatthecomplaintwasadmissibleandthatdefensive
measuresmightbenecessary,theCommission offi­
ciallyinformedtheimportersandexportersknownto
beconcerned,publishedintheOfficialJournalof
theEuropeanCommunities anoticeoftheinitiation
ofaninquiryconcerningtheimportsinquestion(3)
andcommenced anexamination ofthematterin
cooperationwiththeMemberStates;
Whereas,sincepreliminaryexaminationofthematter
showedthattherewasdumpingandsufficient
evidenceofinjuryandtheinterestsoftheCommunity
calledforimmediateintervention ,theCommission ,
byrecommendation No159/78/ECSC(4),imposeda
provisionalanti-dumping dutyontheimportsinques­
tion;
Whereas,thesaidprovisionaldutyhasbeen
extended(5)andsuspended(6);
Whereas,inthecourseoftheexamination ofthe
matter,completedaftertheimpositionoftheprovi­sionalanti-dumping duties,theCommissiongaveinte­
restedpartiestheopportunitytomakeknowntheir
viewsinwritingandgavethepartiesdirectly
concernedwhosorequestedtheopportunityorallyto
developtheirviews;
Whereas,however,insofarasinterestedpartiesdid
notavailthemselvesoftheopportunitytomake
knowntheirviewsorpresenttheirarguments,the
Commissionhadtobaseitsfindingsonthefactsavail­
able;
Whereasinviewoftheparticularsituationprevailing
onnationalandinternational marketsforsteelit
appearedtotheCommission thatsalesonthe
domesticmarketofSpainwerenotmadeintheordi­
narycourseoftradeanddie.notpermitaproper
comparisonforthepurposesofestablishingdumping
margins;
Whereas,forthesereasons,theCommission has
decidedtobaseitsdumpingcalculationsonthecost
ofproductioninacountryconsideredtobeoneofthe
mostefficientproducersoftheproductinquestion,as
establishedbymeansofthelatestpubliclyavailable
data;
Whereassuchcostofproductionhasbeencalculated
takingintoconsideration interaliathefollowing
elements :rawmaterial(coveringironore,sinter,
pellets,scrap,ferroalloysandotheriron-bearingmate­
rialsandfluxes),energycosts(coke,fueloil,electri­
city),labourcostsincludingsocialcosts,other
operatingcosts(includingmaintenance costsand
transportcosts)andcapitalcosts,towhichwasadded
areasonableamountforadministration ,sellingand
anyothercostsandforprofits;
Whereastheaforementioned calculation has
confirmedthereasonableness ofthebasicpricesas
publishedbytheCommission (7);
WhereasthepricesofimportsintotheCommunityof
theproductswhicharethesubjectofthecomplaint
havebeencomparedwiththesebasicprices;
Whereasthispricecomparisonwasmadeonafree
Communityfrontierduty-paidbasis;(>)OJNoL114,5.5.1977,p.6.
(2)OJNoL352,31.12.1977,p.13.
(3)OJNoC33,9.2.1978,p.3.
(4)OJNoL23,28.1.1978,p.3.
(5)OJNoL115,27.4.1978.
(<>)OJNoL120,4.5.1978.(7)Communication fromtheCommission of31December
1977concerningthebasicpricesofcertainsteelproducts
(OJNoL353,31.12.1977,p.1),asmodifiedbycommu­
nicationof5July1978(OJNoL183,5.7.1978,p.3).

27.7.78 OfficialJournaloftheEuropeanCommunities NoL203/29
Whereastheamountofsuchdefinitivedutyshould
correspondtothedifferencebetweenthebasicprice
publishedbytheCommission fortheproductsin
questionandtheirpriceonimportationintothe
Community ,dueconsideration beinggiventoany
reductioninvalueclaimedbytheimportersandesta­
blishedtothesatisfactionofthecompetentnational
authorities ;
Whereas,however,certainarrangements havebeen
madebetweentheCommunityandSpainwithrespect
totradeinsteelproducts;
Whereasthesearrangements ,whichtheCommission
considerssatisfactory,allowthedefinitivedutyunder
thisrecommendation tobesuspendedandtoexclude
certaintransactions fromthedefinitivecollection
duty,
HASADOPTEDTHISRECOMMENDATION :
Article1
1.Adefinitiveanti-dumping dutyishereby
imposedonthefollowingproductsoriginatingin
Spain:Whereasthisexamination ofthematterhasshown
thattheproductsinquestionwereofferedforimport
withintheCommunityatpriceslowerthanthebasic
pricesandthatdumpinghastakenplace,themargin
ofwhichisconstitutedbythisundercutting ;
Whereas,withregardtoinjurytotheindustry
concerned,theevidenceavailabletotheCommission
showsthatimportsintotheCommunity ofthe
productsconcernedincreasedoverallfrom374000
tonnesin1974to519000tonnesin1977,whilethose
originatinginSpainrosefrom32000to259000
tonnesoverthesameperiod,themarketsharesthus
achievedbeing9%forallimportsand6%forthose
originatinginSpain,togetherwiththosefrom
Czechoslovakia ,Hungary,JapanandSouthAfrica,
whicharealsosubjecttodefensivemeasuresinthe
Communityortosteelarrangementsconcludedwith
theECSC;
Whereas,ontheotherhand,theCommunitysteel
industryisinastateofcrisis;whereasduringthe
period1974to1977deliveriesoftheproductsfellby
some21%,whilethenumberemployedfellfrom
780000to720000,short-timeworkingbecameneces­
saryandmostofthefirmsconcernedshowedreduced
profitsorseriouslosses;
Whereas,inordertoremedythissituation,the
Commission hasintroducedasystemofguidance
prices(')forsaleswithintheCommunityofcertain
steelproductsproducedbytheEuropeansteel
industry;
WhereastheimportpricesintotheCommunityof
productsoriginatinginSpainareconsiderablylower
thantheseguidanceprices;whereassuchundercut­
tingpreventstheEuropeanproducersfromachieving
theguidancepricfes,jeopardizestheequilibriumofthe
entirepricingsystemandcausesorthreatenstocause
materialinjurytotheCommunityindustryortoa
majorpartthereof;
Whereas,therefore,thefactsasfinallyestablished
showthatmaterialinjuryhasbeencausedtothe
Communityindustry,orthatsuchinjurywouldhave
beencausedifprovisionalactionhadnotbeentaken,
byimportsoriginatinginSpaintogetherwiththose
fromCzechoslovakia ,Hungary,JapanandSouth
Africa,whicharealsosubjecttodefensivemeasuresor
coveredbysteelarrangements concludedwiththe
Community ;
Whereas,intheseriousconditionsbeingexperienced
bytheCommunitysteelindustry,theinterestsofthe
Communityrequiretheimpositionofadefinitive
anti-dumping dutyandthedefinitivecollectionofthe
amountsecuredbywayofprovisionalduty;CCT
heading
NoDescription
73.11AI
(NIMEXE codes
73.11-11,12,14,16)Certainangles,shapesandU,Ior
Hsectionsofironorsteel,not
furtherworkedthanhot-rolledor
extruded
2.Theamountofthisdutyshallbeequaltothe
amountbywhichtheeffectiveprice(basicpriceplus
extras)establishedbycontract,freefrontierduty-paid,
islowerthantheeffectiveprice(basicpriceplus
extras)lastpublishedbytheCommission forthis
productatthetimeofitsentryforCommunity
consumption .
3.Theamountofthedutyshallhoweverbe
reducedtotheextentthattheimporterestablishesto
thesatisfactionofthecompetentnationalauthorities
thatthepricedifferentialreferredtoinparagraph2
aboveisduetoadiminutioninvalueresultingfrom
thequalityofthegoodsbeinginferiortothelowest
qualitydescribedinthelastpublicationofbasicprices
bytheCommission .
(!)OJNoL114,5.5.1977,p.1;OJNoC174,22.7.
1977;OJNoL352,31.12.1977,p.17.4.Thisdutyshallbecollectedonthesamebasisas
customsduties.

27.7.78 NoL203/30 OfficialJournaloftheEuropeanCommunities
sionclausepermittinganadaptationofthe
contractpricestothebasicpricesappliedinthe
Community ;
(c)deliveriesmadeunderthecontractsreferredto
under(b)aboveanddestinedforshipbuilding
yardswithintheCommunity .
Article5
Thisrecommendation shallbenotifiedtotheMember
States.
ItshallenterintoforceforeachMemberStateonthe
dateofitspublicationintheOfficialJournalofthe
EuropeanCommunities .Article2
Theamountssecuredbywayofprovisionalduty
undertheprovisionsofrecommendation No159/78/
ECSCinrespectofproductsoriginatinginSpainshall
bedefinitivelycollectedtotheextentthattheydonot
exceedtherateofdutyfixedinthisrecommendation .
Article3
Theapplicationofthedefinitiveanti-dumping duty
imposedunderArticle1aboveisherebysuspended .
Article4
InderogationfromArticle2,theamountssecuredby
wayofprovisionaldutyshallnotbedefinitively
collectedbutshallberefunded,uponrequestofthe
importerconcerned,asregards:
(a)shapesandsectionsofironorsteel,notfurther
workedthanhotrolledorextruded,joists,
universalbeamsandcolumnsandchannelswitha
webmeasurement oflessthan80mm;
(b)deliveriesmadeundercontractsconcludedbefore
20December1977whichcontainnopricereviDoneatBrussels,26July1978.
FortheCommission
WilhelmHAFERKAMP
Vice-President