fer-
COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(92) 452 final 
Brussels, 30 October 1992 
K?*'^ Proposal for a 
COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 1768/89 
In respect of definitive antidumping duty on certain Imports 
of video cassettes originating 
In Hong Kong 
(presented by the Commission) 
_>4 «9- — 
EXPLANATORY MEMORANDUM 
(1) By Regulation (EEC) No 1768/89, the Council imposed a definitive 
anti-dumping duty of 21.9% on Imports of VHS video tape In cassettes 
originating in Hong Kong. 
(2) By a notice published the 8 April 1992 the Commission initiated a 
review of the anti-dumping duty concerned as regards a Hong Kong 
company, Inter-Cassette (Hong Kong) Ltd. 
(3) The investigation showed that Inter-Cassette (Hong Kong) Ltd had 
begun to export own produced video cassettes to the European 
Community after the entry into force of the above Regulation. 
(4) Normal value was determined on the basis of the domestic price of 
the mode Is concerned. Export price was based on the actual price 
paid or payable for export. The dumping margin established was 1,4%. 
(5) Such a dumping margin was considered as being de minimis in the 
original Council Regulation (EEC) No 1768/89 for Import of video 
tape on reels originating In the Republic of Korea. 
(6) In conclusion, It Is proposed that the Council amends Its Regulation 
(EEC) n* 1768/89 and exempts inter-Cassette (Hong Kong) Ltd from the 
definitive ant I-dumping duty Imposed on VHS video tapes In cassettes 
originating In Hong Kong. 
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Proposal for a 
COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 1768/89 
In respect of definitive antidumping duty on certain Imports 
of video cassettes originating 
In Hong Kong 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on 
protection against dumped or subsidized Imports from countries not 
members of the European Economic Community^1*, and In particular 
Article 14 thereof. 
Having regard to the proposai submitted by the Commission after 
consultation within the Advisory Committee as provided for under the 
above Regulation, 
Whereas: 
I - PREVIOUS PROCEDURE 
(1) By Regulation (EEC) No 1768/89<2), as amended by Regulation (EEC) 
No 3522/90<3>, Regulation (EEC) No 1292/92<4> and Regulation (EEC) 
No 1769/92(5). the Council Imposed a definitive ant I-dumping duty 
of 21.9% on Imports of VHS video tape In cassettes (hereafter "video 
cassettes") falling within code ex 8523 1300 originating in Hong 
Kong, with the exception of Imports from several exporters 
(1) OJ no. L 209, 02.08.1988, p. 1. 
(2) OJ No L 174, 22.06.1989, p. 1. 
(3) 0J No L 343, 7.12.1990, p.1. 
(4) 0J No L 139, 22.5.1992, p.1. 
(5) 0J No L 182,2.7.1992, p.6. 
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especially mentioned which were subject to a lesser rate of duty or 
exempt from duty. 
(2) In recital 43 of Regulation (EEC) N' 1768/89, concerning Companies 
which started or will start exporting own-produced video cassettes 
to the Community after the Investigation period (newcomers), the 
Council noted that the Commission was ready to initiate without 
delay a review proceeding If the exporting company could show the 
Commission, and supply sufficient evidence, that It did not export 
the products concerned to the Community during the period of 
investigation. The company also has to demonstrate that it started 
or will start those exports after the said period and that It Is 
not related to or associated with any of the companies subject to 
the Investigation. 
M - REVIEW 
(3) By a notice published on 8 April 1992(3), the Commission, after 
consultation with the Advisory Committee and In accordance with 
Article 14 of Regulation (EEC) No 2423/88 Initiated a review of 
Regulation (EEC) No 1768/89 as It concerned a Hong Kong company, 
Inter-Cassette (Hong Kong) Ltd. This company had submitted that It 
did not export the products subject to the ant I-dumping duty during 
the previous period of Investigation (1 January - 30 November 1987) 
but that they started such exports after the said period. In 
addition, It submitted that It was not related with any of the 
companies subject to the previous Investigation for which dumping 
was found. Accordingly, the Commission commenced an Investigation In 
order to verify whether Inter-Cassette (Hong Kong) Ltd. could be 
considered as a newcomer and to establish a dumping margin, if any, 
for this company. 
(6) 0J No C 266 Of 12/10/1991, p. 7. 
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III - RESULTS OF THE INVESTIGATION 
1. Newcomer 
(4) The investigation showed that inter-Cassette (Hong Kong) Ltd began 
to export own-produced video cassettes to the Community after the 
previous Investigation period mentioned in recital 3. In addition, 
It was found that this company had no link of any sort with the 
exporters Involved in the previous procedure and for which dumping 
was found. The Council confirms that It should accordingly be 
considered as a newcomer and that a partial review of Regulation 
(CEE) No 1768/89 as It concerned inter-Cassette (Hong Kong) Ltd was 
warranted. 
2. Normal value 
(5) As Inter-Cassette (Hong Kong) Ltd did sell video cassettes on the 
domestic market In sufficient quantities during the investigation 
period for this review, and at prices which permitted recovery of 
all costs, normal value was determined on the basis of the weighted 
average domestic prices for the models exported to the Community. 
3. Export price 
(6) Export prices were determined by the Commission on the basis of the 
prices, net of all rebates, actually paid or payable for the video 
cassettes sold for export by Inter-Cassette (Hong Kong) Ltd to the 
Community. Indeed, since exports were made directly to Independent 
Importers In the Community, these export prices were found to be 
rellable. 
The Council confirms this finding. 
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4. comparison 
(7) For the purpose of a fair comparison between normal value and export 
price, the Commission took account of differences affecting price 
comparability in accordance with Article 2 (9) and (10) of 
Regulation (EEC) No ?4rë3/88. All comparisons were made at ex-works 
level, at the same level of trade and, for the export price, on a 
transaction by transaction ba?i3. 
The examination of the facts shows the existence of dumping, the 
margin of dumping being equal to the amount by which normal value 
exceeds the price for export to the Community and, as expressed as a 
percentage of total c.l.f. value, was 1,4 X. 
The Council confirms the above findings. 
5. Measures 
(8) A dumping margin of 1,4% was considered as being de minimis In the 
original Council Regulation (EEC) No 1768/89 for imports of video 
tape on reels originating In the Republic of Korea. The Commission 
sees no reason to depart from this appreciation In the present 
proceeding and the Council confirms this appreciation. Therefore, 
the adoption of protective measures against Imports of video tape in 
cassettes manufactured by inter-Cassette (Hong Kong) Ltd. and 
originating In Hong Kong Is not Justified. 
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IV - AMENDMENT OF THE REVIEWED MEASURES 
(9) Accordingly, the Commission considers that Regulation (EEC) No 
1768/89 should be amended and that Inter-Cassette (Hong Kong) Ltd be 
exempted from the definitive ant I-dumping duty Imposed on VHS video­
tapes in cassettes originating in Hong Kong. 
(10) The complainants were Informed of the considerations and main facts 
on the basis of which the Council Intented to amend Regulation (EEC) 
No 1768/89 and had no substantial comments to make. 
(11) Since this review Is only limited to one Hong Kong producer, It does 
not affect the date on which the Council Regulation No 1768/89 In 
regard to Article 15 (1) of Regulation No 2423/88 will expire. 
HAS ADOPTED THIS REGULATION : 
Article 1 
The following paragraph is added to Article 1 (3) of Regulation (EEC) 
No 1768/89 : 
"The duty specified In paragraph 2 (b) shall not apply to models of video 
tape In cassettes manufactured by inter-Cassette (Hong Kong) Ltd and 
originating In Hong Kong (additional Taric Code : 8292). 
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Article 2 
This Regulation shall enter Into force on the day following Its 
publication In the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable 
in all Member States. 
Done at Brussels, 
For the CounclI, 
ISSN 0254-1475 
COM(92) 452 final 
DOCUMENTS 
EN 02 
Catalogue number : CB-CO-92-472-EN-C 
ISBN 92-77-48738-0 
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