****

( 1 ) OJ NO L 114 , 5 . 5 . 1977 , P . 6 .

( 2 ) OJ NO L 352 , 31 . 12 . 1977 , P . 13 .

( 3 ) OJ NO C 19 , 24 . 1 . 1978 , P . 7 .

( 4 ) OJ NO L 19 , 24 . 1 . 1978 , P . 9 AND OJ NO L 23 , 28 . 1 . 1978 , P . 33 .

( 5 ) OJ NO L 39 , 9 . 2 . 1978 , P . 13 .

( 6 ) POLAND : OJ NO L 120 , 4 . 5 . 1978 , AND OJ NO

L 145 , 1 . 6 . 1978 .

SPAIN : OJ NO L 115 , 27 . 4 . 1978 .

JAPAN : OJ NO L 106 , 20 . 4 . 1978 .

CZECHOSLOVAKIA : OJ NO L 106 , 20 . 4 . 1978 .

( 7 ) SPAIN : OJ NO L 120 , 4 . 5 . 1978 .

CZECHOSLOVAKIA : OJ NO L 116 , 28 . 4 . 1978 .

JAPAN : OJ NO L 94 , 8 . 4 . 1978 .

( 1 ) COMMUNICATION FROM THE COMMISSION OF 31 DECEMBER 1977 CONCERNING THE BASIC PRICES OF CERTAIN STEEL PRODUCTS ( OJ NO L 353 , 31 . 12 . 1977 , P . 1 ), AS AMENDED BY THE COMMUNICATION OF 5 JULY 1978 ( OJ NO L 183 , 5 . 7 . 1978 , P . 3 .

( 2 ) OJ NO L 114 , 5 . 5 . 1977 , P . 1 , OJ NO C 174 , 22 . 7 . 1977 AND OJ NO L 352 , 31 . 12 . 1977 , P . 17 .

COMMISSION RECOMMENDATION NO 1704/78/ECSC

OF 19 JULY 1978

IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON CERTAIN SHEETS AND PLATES , OF IRON OR STEEL , ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN

THE COMMISSION OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY , AND IN PARTICULAR ARTICLES 74 AND 86 THEREOF ,

HAVING REGARD TO COMMISSION RECOMMENDATION 77/329/ECSC OF 15 APRIL 1977 ON PROTECTION AGAINST DUMPING OR THE GRANTING OF BOUNTIES OR SUBSIDIES BY COUNTRIES WHICH ARE NOT MEMBERS OF THE EUROPEAN COAL AND STEEL COMMUNITY ( 1 ), AS AMENDED BY RECOMMENDATION NO 3004/77/ECSC ( 2 ), AND IN PARTICULAR ARTICLES 17 AND 19 THEREOF ,

HAVING REGARD THE OPINIONS EXPRESSED WITHIN THE ADVISORY COMMITTEE PROVIDED FOR BY RECOMMENDATION 77/329/ECSC ,

WHEREAS THE COMMISSION HAS RECEIVED A COMPLAINT , SUBMITTED IN THE NAME OF THE RELEVANT COMMUNITY INDUSTRY , SETTING OUT EVIDENCE AS TO THE EXISTENCE OF DUMPING OF CERTAIN SHEETS AND PLATES OF IRON OR STEEL , ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN AND CERTAIN OTHER COUNTRIES , AND MATERIAL INJURY RESULTING THEREFROM ;

WHEREAS , SINCE THE INFORMATION RECEIVED INDICATED THAT THE COMPLAINT WAS ADMISSIBLE AND THAT DEFENSIVE MEASURES MIGHT BE NECESSARY , THE COMMISSION OFFICIALLY INFORMED THE IMPORTERS AND EXPORTERS KNOWN TO BE CONCERNED , PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES A NOTICE OF THE INITIATION OF AN INQUIRY CONCERNING THE IMPORTS IN QUESTION ( 3 ) AND COMMENCED AN EXAMINATION OF THE MATTER IN COOPERATION WITH THE MEMBER STATES ;

WHEREAS , SINCE PRELIMINARY EXAMINATION OF THE MATTER SHOWED THAT THERE WAS DUMPING AND SUFFICIENT EVIDENCE OF INJURY AND THE INTERESTS OF THE COMMUNITY CALLED FOR IMMEDIATE INTERVENTION , THE COMMISSION , BY RECOMMENDATIONS NO 121/78/ECSC , NO 160/78/ECSC ( 4 ), AND NO 262/78/ECSC ( 5 ) IMPOSED PROVISIONAL ANTI-DUMPING DUTIES ON THE IMPORTS IN QUESTION ;

WHEREAS , IN CERTAIN CASES , THE SAID RECOMMENDATIONS HAVE BEEN EXTENDED ( 6 ) AND IN CERTAIN CASES SUSPENDED ( 7 );

WHEREAS , IN THE COURSE OF THE EXAMINATION OF THE MATTER , COMPLETED AFTER THE IMPOSITION OF THE PROVISIONAL ANTI-DUMPING DUTIES , THE COMMISSION GAVE INTERESTED PARTIES THE OPPORTUNITY TO MAKE KNOWN THEIR VIEWS IN WRITING AND GAVE THE PARTIES DIRECTLY CONCERNED WHO SO REQUESTED THE OPPORTUNITY ORALLY TO DEVELOP THEIR VIEWS :

WHEREAS , HOWEVER , IN SO FAR AS INTERESTED PARTIES DID NOT AVAIL THEMSELVES OF THE OPPORTUNITY TO MAKE KNOWN THEIR VIEWS OR PRESENT THEIR ARGUMENTS , THE COMMISSION HAD TO BASE ITS FINDINGS ON THE FACTS AVAILABLE ;

WHEREAS , WHEN DETERMINING DUMPING ON THE IMPORTS ORIGINATING IN CZECHOSLOVAKIA AND POLAND , THE COMMISSION HAD TO TAKE ACCOUNT OF THE FACT THAT TRADE IS ON A BASIS OF NEAR OR TOTAL MONOPOLY AND THAT PRICES ARE FIXED BY THE STATE AND THAT , THEREFORE , AN EXACT COMPARISON BETWEEN THE EXPORT PRICE OF THE PRODUCT TO THE COMMUNITY AND ITS DOMESTIC PRICE IS NOT APPROPRIATE ;

WHEREAS IN VIEW OF THE PARTICULAR SITUATION PREVAILING ON NATIONAL AND INTERNATIONAL MARKETS FOR STEEL IT APPEARED TO THE COMMISSION THAT SALES ON THE DOMESTIC MARKETS OF JAPAN AND SPAIN WERE NOT MADE IN THE ORDINARY COURSE OF TRADE AND DID NOT PERMIT A PROPER COMPARISON FOR THE PURPOSES OF ESTABLISHING DUMPING MARGINS ;

WHEREAS , FOR THESE REASONS , THE COMMISSION HAS DECIDED TO BASE ITS DUMPING CALCULATIONS ON THE COST OF PRODUCTION IN A COUNTRY CONSIDERED TO BE ONE OF THE MOST EFFICIENT PRODUCERS OF THE PRODUCT IN QUESTION , AS ESTABLISHED BY MEANS OF THE LATEST PUBLICLY AVAILABLE DATA ;

WHEREAS SUCH COST OF PRODUCTION HAS BEEN CALCULATED TAKING INTO CONSIDERATION INTER ALIA THE FOLLOWING ELEMENTS : RAW MATERIALS ( COVERING IRON ORE , SINTER , PELLETS , SCRAP , FERRO ALLOYS AND OTHER IRON-BEARING MATERIALS AND FLUXES ), ENERGY COSTS ( COKE , FUEL OIL , ELECTRICITY ), LABOUR COSTS INCLUDING SOCIAL COSTS , OTHER OPERATING COSTS ( INCLUDING MAINTENANCE COSTS AND TRANSPORT COSTS ) AND CAPITAL COSTS , TO WHICH WAS ADDED A REASONABLE AMOUNT FOR ADMINISTRATION , SELLING AND ANY OTHER COSTS AND FOR PROFITS ;

WHEREAS THE AFOREMENTIONED CALCULATION HAS CONFIRMED THE REASONABLENESS OF THE BASIC PRICES AS PUBLISHED BY THE COMMISSION ( 1 );

WHEREAS THE PRICES OF IMPORTS INTO THE COMMUNITY OF THE PRODUCTS WHICH ARE THE SUBJECT OF THE COMPLAINT HAVE BEEN COMPARED WITH THESE BASIC PRICES ;

WHEREAS THIS PRICE COMPARISON WAS MADE ON A FREE COMMUNITY FRONTIER DUTY-PAID BASIS ;

WHEREAS THIS EXAMINATION OF THE MATTER HAS SHOWN THAT THE PRODUCTS IN QUESTION WERE OFFERED FOR IMPORT WITHIN THE COMMUNITY AT PRICES LOWER THAN THE BASIC PRICES AND THAT DUMPING HAS TAKEN PLACE , THE MARGIN OF WHICH IS CONSTITUTED BY THIS UNDERCUTTING ;

WHEREAS , WITH REGARD TO THE INDUSTRY CONCERNED , THE EVIDENCE AVAILABLE TO THE COMMISSION SHOWS THAT , WHILST GLOBAL IMPORTS IN 1977 AMOUNTED TO 1 700 000 TONNES , IMPORTS ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN ROSE FROM 431 000 TONNES IN 1974 TO 811 000 TONNES IN 1977 ; WHEREAS , AS A RESULT , GLOBAL IMPORTS HAVE ACQUIRED A COMMUNITY MARKET SHARE OF 19 % IN TOTAL AND 12 % FOR IMPORTS ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN , TOGETHER WITH THOSE FROM AUSTRIA , BULGARIA , FINLAND , THE GERMAN DEMOCRATIC REPUBLIC , ROMANIA AND SWEDEN , WHICH ARE ALSO SUBJECT TO DEFENSIVE MEASURES IN THE COMMUNITY OR TO STEEL ARRANGEMENTS CONCLUDED WITH THE ECSC ;

WHEREAS , ON THE OTHER HAND , THE COMMUNITY STEEL INDUSTRY IS IN A STATE OF CRISIS ; WHEREAS DURING THE PERIOD 1974 TO 1977 PRODUCTION OF THE PRODUCTS CONCERNED FELL BY SOME 40 % WHILE THE NUMBER EMPLOYED DROPPED FROM 780 000 TO 720 000 , SHORT-TIME WORKING BECAME NECESSARY AND MOST OF THE FIRMS CONCERNED SHOWED REDUCED PROFITS OR SERIOUS LOSSES ;

WHEREAS , IN ORDER TO REMEDY THIS SITUATION , THE COMMISSION HAS INTRODUCED A SYSTEM OF GUIDANCE PRICES ( 2 ) FOR SALES WITHIN THE COMMUNITY OF CERTAIN STEEL PRODUCTS PRODUCED BY THE EUROPEAN STEEL INDUSTRY ;

WHEREAS THE IMPORT PRICES INTO THE COMMUNITY OF PRODUCTS ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN ARE CONSIDERABLY LOWER THAN THESE GUIDANCE PRICES ; WHEREAS SUCH UNDERCUTTING PREVENTS THE EUROPEAN PRODUCERS FROM ACHIEVING THE GUIDANCE PRICES , JEOPARDIZES THE EQUILIBRIUM OF THE ENTIRE PRICING SYSTEM AND CAUSES OR THREATENS TO CAUSE MATERIAL INJURY TO THE COMMUNITY INDUSTRY OR TO A MAJOR PART OF IT ;

WHEREAS , THEREFORE , THE FACTS AS FINALLY ESTABLISHED SHOW THAT MATERIAL INJURY HAS BEEN CAUSED TO THE COMMUNITY INDUSTRY OR THAT SUCH INJURY WOULD HAVE BEEN CAUSED IF PROVISIONAL ACTION HAD NOT BEEN TAKEN , BY IMPORTS ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN TOGETHER WITH THOSE FROM AUSTRIA , BULGARIA , FINLAND , THE GERMAN DEMOCRATIC REPUBLIC , ROMANIA AND SWEDEN , WHICH ARE ALSO SUBJECT TO DEFENSIVE MEASURES OR COVERED BY STEEL ARRANGEMENTS CONCLUDED WITH THE COMMUNITY ;

WHEREAS , IN THE SERIOUS CONDITIONS BEING EXPERIENCED BY THE COMMUNITY STEEL INDUSTRY , THE INTERESTS OF THE COMMUNITY REQUIRE THE IMPOSITION OF A DEFINITIVE ANTI-DUMPING DUTY AND THE DEFINITIVE COLLECTION OF THE AMOUNT SECURED BY WAY OF PROVISIONAL DUTY ;

WHEREAS THE AMOUNT OF SUCH DEFINITIVE DUTY SHOULD CORRESPOND TO THE DIFFERENCE BETWEEN THE BASIC PRICE PUBLISHED BY THE COMMISSION FOR THE PRODUCTS IN QUESTION AND THEIR PRICE ON IMPORTATION INTO THE COMMUNITY , DUE CONSIDERATION BEING GIVEN TO ANY REDUCTION IN VALUE CLAIMED BY THE IMPORTERS AND ESTABLISHED TO THE SATISFACTON OF THE COMPETENT NATIONAL AUTHORITIES ;

WHEREAS , HOWEVER , CERTAIN ARRANGEMENTS HAVE BEEN MADE BETWEEN THE COMMUNITY AND CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN WITH RESPECT TO TRADE IN STEEL PRODUCTS ;

WHEREAS THESE ARRANGEMENTS , WHICH THE COMMISSION CONSIDERS SATISFACTORY , ALLOW THE DEFINITIVE DUTY UNDER THIS RECOMMENDATION TO BE SUSPENDED AND TO EXCLUDE CERTAIN TRANSACTIONS FROM THE DEFINITIVE COLLECTION OF DUTY ,

HAS ADOPTED THIS RECOMMENDATION :

ARTICLE 1

1 . A DEFINTIVE ANTI-DUMPING DUTY IS HEREBY IMPOSED ON THE FOLLOWING PRODUCTS ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN :

- SHEETS AND PLATES , OF IRON OR STEEL , OTHER THAN ELECTRICAL , NOT FURTHER WORKED THAN HOT-ROLLED , OF A THICKNESS OF 2 MM OR MORE ,

- COMMON CUSTOMS TARIFF SUBHEADING 73.13 B I A ),

- NIMEXE CODES 73.13-17 , 19 , 21 , 23 AND 26 .

2 . THE AMOUNT OF THIS DUTY SHALL BE EQUAL TO THE AMOUNT BY WHICH THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRAS ) ESTABLISHED BY CONTRACT , FREE FRONTIER DUTY-PAID , IS LOWER THAN THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRAS ) LAST PUBLISHED BY THE COMMISSION FOR THIS PRODUCT AT THE TIME OF ITS ENTRY FOR COMMUNITY CONSUMPTION .

3 . THE AMOUNT OF THE DUTY SHALL HOWEVER BE REDUCED TO THE EXTENT THAT THE IMPORTER ESTABLISHES TO THE SATISFACTION OF THE COMPETENT NATIONAL AUTHORITIES THAT THE PRICE DIFFERENTIAL REFERRED TO IN PARAGRAPH 2 ABOVE IS DUE TO A DIMINUTION IN VALUE RESULTING FROM THE QUALITY OF THE GOODS BEING INFERIOR TO THE LOWEST QUALITY DESCRIBED IN THE LAST PUBLICATION OF BASIC PRICES BY THE COMMISSION .

4 . THIS DUTY SHALL BE COLLECTED ON THE SAME BASIS AS CUSTOMS DUTIES .

ARTICLE 2

THE AMOUNTS SECURED BY WAY OF PROVISIONAL DUTY UNDER THE PROVISIONS OF RECOMMENDATIONS NO 121/78/ECSC , NO 160/78/ECSC AND NO 262/78/ECSC IN RESPECT OF PRODUCTS ORIGINATING IN CZECHOSLOVAKIA , JAPAN , POLAND AND SPAIN SHALL BE DEFINITIVELY COLLECTED TO THE EXTENT THAT THEY DO NOT EXCEED THE RATE OF DUTY FIXED IN THIS RECOMMENDATION .

ARTICLE 3

1 . THE APPLICATION OF THE DEFINITIVE ANTI-DUMPING DUTY IMPOSED UNDER ARTICLE 1 ABOVE IS HEREBY SUSPENDED .

ARTICLE 4

IN DEROGATION FROM ARTICLE 2 , THE AMOUNTS SECURED BY WAY OF PROVISIONAL DUTY SHALL NOT BE DEFINITIVELY COLLECTED BUT SHALL BE REFUNDED UPON REQUEST OF THE IMPORTER CONCERNED , AS REGARDS :

( A ) SHEETS AND PLATES OF THICKNESS NOT EXCEEDING 10 MM ;

( B ) DELIVERIES MADE UNDER CONTRACTS CONCLUDED BEFORE 20 DECEMBER 1977 , WHICH CONTAIN NO PRICE REVISION CLAUSE PERMITTING AN ADAPTATION OF THE CONTRACT PRICES TO THE BASIC PRICES APPLIED IN THE COMMUNITY ;

( C ) DELIVERIES MADE UNDER THE CONTRACTS REFERRED TO UNDER ( B ) ABOVE AND DESTINED FOR SHIPBUILDING YARDS WITHIN THE COMMUNITY .

ARTICLE 5

THIS RECOMMENDATION SHALL BE NOTIFIED TO THE MEMBER STATES .

IT SHALL ENTER INTO FORCE FOR EACH MEMBER STATE ON THE DATE OF ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

DONE AT BRUSSELS , 19 JULY 1978 .

FOR THE COMMISSION

WILHELM HAFERKAMP

VICE-PRESIDENT