ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)879
Vol.1982/0268

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)879 final
Brussels ,20December 1982
Proposal for a
COUNCIL REGULATION (EEC )
imposing adefinitive anti-dumping duty oncertain chemical fertilizer
originating intheUnited States ofAmerica
(submitted totheCouncil bytheCommission )
<-'s»\
^vV
Λ ν-
COM (82)879 final

EXPLANATORY MEMORANDUM
1...... .2
On22Julyand21August1982theCommission imposedprovisional anti-
dumpingdutiesonexportsofureaammoniumnitratesolutionfertilizer
originating intheUSA.Thedutieswereimposedonthreecompanies,
AlliedCorporation,Transcontinental Fertilizer CompanyandKaiser
AluminumDomesticandInternational SalesCorporation,allofwhomhad
withdrawnfrompriceundertakings acceptedbytheCommissionin1981^.
AlliedCorporation didnotco-operateintheCommission'ssubsequent
investigation .Inaddition,Kaiserwasfoundtohavebeeninbreachof
itsundertaking byexportingtotheEECviaTranscontinental ,whose
undertaking pricewaslowerthanKaiser's.
Allthreecompanies' undertakings hadcontained anindexation formula
requiringsixmonthlyadjustments ofexportprices.TheCommission applied
thisindexation formulaasthebasisonwhichthelevelsofdumpingwere
established .ExportsbyAlliedCorporation ,KaiserandTranscontinental
wereonthisbasisdumpedatmarginsof19.05%,12.13%and12.01%
respectively .
Withrespecttoinjurythedumpedshipments amountedtoapproximately 12%
ofCommunityconsumption in1982andweresoldatpricesconsiderably
belowtheCommunityproducers' costs.
OnthebasisofthesefactstheCommission therefore submitstothe
CouncilitsproposalforaCouncilRegulation imposingdefinitiveanti-
dumpingdutiesoncertainchemicalfertilizer exportedbytheUScompanies
AlliedCorporation,KaiserAluminumDomesticandInternational Sales
Corporation andTranscontinental Fertilizer Companyattherespective
levelsof19.05%,12.13%and12.01%.Itisalsoproposedtocollect
definitively alltheamountssecuredasprovisional duty.
0JN°L214,22.07.1982,p.7
20JN°L246,21.08.1982,p.5
30JN°L39,12.02.1981,p.35

Proposal for a
COUNCIL REGULATION (EEC )
imposing adefinitive anti-dumping duty oncertain chemical fertilizer
originating intheUnited States ofAmerica
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
1
Having regard toCouncil Regulation (EEC )N3017 /79of20December 1979
onprotection against dumped orsubsidized imports from countries not
members ofthe European Economic Community ,and inparticular Article 12
thereof ,asamended byCouncil Regulation (EEC )N°1580 /82of
14June 1982*",
Having regard tothe proposal submitted bythe Commission after consultation
within theAdvisory Committee provided for by thesaid Regulation
(EEC )N°3017 /79,
in1981 3Whereas /theCouncil ,byRegulation (EEC )N349 /81,imposed adefinitive
anti-dumping duty onimports ofurea ammonium nitrate solution fertilizer
(UAN )originating intheUnited States ofAmerica (USA )the level ofduty
being 6.5% ;
Whereas this definitive anti-dumping duty did notapply toUAN exported
Corppratj on),byinter alia Allied Corporation (formerly Allied Chemical /Kaiser
Aluminum Domestic andInternational Sales Corpora^fon^and Transcontinental
Fertiliser Co.^ranS ?si1nJeeprfce undertakings wereoffered bythese
4companies and were considered acceptable bytheCommission ;
0JN°L339 ,31.12.1979 ,p. 1
20JN°L178,22.06.1982 ,p.9
30JN°L39,12.02.1981 .,p.4
40JN°L39,12.02.1981 ,p.35

WhereasAlliedCorporation,Transcontinental and
Kaiser haveby
correspondence dated7June,2Julyand23July1982respectively informed
theCommissionoftheirwithdrawalfromtheirindividualpriceundertakings;
WhereasinaccordancewithArticle10(6)ofthesaidCouncilRegulation
(EEC)N°3017/79,theCommission informedtheMemberStatesforthwith
1andreopenedtheproceedings ;whereasthisreopening wasalsowarranted
byevidencesubmittedtotheCommission bytheEECproducersofchanged
circumstances asregardsimportsofUAN^totheCommunityfromtheUSAto
justifyaneedforareviewintermsofArticle14ofthesaidCouncil
Regulation (EEC)N°3017/79;
Whereas theCommission consideredthatthecompanieswhich
withdrewfromtheirundertakings didsoinordertoexportUANtothe
Communityatpricelevelsbelowthosespecifiedintheundertakings ;whereas
accordingtotheinformation availabletotheCommission
anyexports
atsuchpricelevelswouldbedumpedandcauseinjurytotheCommunity
industry;
Whereasthedumpingmargins determined
duringthepreviousinvestigation were6.5%forAlLiedCorporation and
Transcontinental and5%forKaiser;
whereastheselevelswerethoseatwhich
dutieswouldhavebeenimposedhadthesecompanies'priceundertakings not
beenaccepted;
WhereastheCommunity'sintereststhereforecalledfortheimmediate
application ofprovisional measuresbasedontheevidenceavailabletothe
Commission;whereastheCommission has,accordingly,intermsofArticle10(6)
ofthesameCouncilRegulation (EEC)N°3017/79imposedprovisional anti-
dumpingdutiesattheabove-mentio edlevelsonthethreecompaniesconcerned
3 ..4byRegulation (EEC)N1976/82,asamended;
OJN°C179,16.07.1982,p.4
^CommonCustomsTariffsubheading :ex31.02C;Nimexecode:ex31.02-90
30JN°L214,22.07.1982,p.7
40JN°L246,21.08.1982,p.5

-3-
WhereastheCommission atthesametimecommencedfurtherinvestigation
andofficially soadvisedtheexporters andimporters knowntobeconcerned
aswellasrepresentatives oftheexportingcountry;
WhereastheCommission hasgiventhepartiesdirectlyconcernedtheopportunity
tomakeknowntheirviewsinwritingandtorequestahearing;whereasall
theexporters concerned andcertainimporters havemadetheirviewsknown
inwritingandhaverequested andbeengrantedahearing .;
couldbe
Whereasinorderthatafullexaminr.ticnofthesvnilshlefacts/madehy
theCommission beforedefinitive measuresweretaken,,theCouncilbyRegulation
(EEC)N°3044/82Vr0longedthevalidityoftheprovisional anti-dumping duties
bytwomonths;
WhereastheCommission hasforthepurposeofthefurtherinvestigation
soughtandverifiedinformation deemedtobenecessaryatthepremisesof
thefollowing EECproducers :-
AzotesetProduitsChimiques SA,Paris
CompagnieFrançaise del'Azote,Paris
GénéraldesEngrais,Paris
SociétéChimiquedelaGrandeParoisse,Paris
RuhrStickstoff AG,Bochum
BASFAG,Ludwigshafen
NederlandscheStickstof Maatschappij ,Brussels
UnievanKunstmestfabriekenBV,Utrecht;
andthefollowingimporters:-Demufert SA,Brussels;Ferdi sSA,Brussels;
WhereasAlliedCorporation didnotco-operate intheinvestigation ;whereas
KaiserinformedtheCommission thattheyhadnotexportedtotheEECsince
offeringtheirundertaking andaccordingly norelevantexportpriceexistedfor
mparisonpurposes;whereas,however,aninvestigation tookplaceatthepremisesof
Transcontinental inPhiladelphia whichrevealedthattheproductexported
byithadbeenproducedbyKaiser;

WhereastheCommission,asaresultofthisfurtherinvestigation,has
establishedupdatednormalvaluesforthecompaniesconcerned;whereas,
becauseofthelackofco-operation fromAlliedCorporation theCommission
hadtoestablishwhethertherewasdumpinginthecaseofAlliedin
conformitywithArticle7paragraph7(b)ofRegulation (EEC)N°3017/79on
thebasisofthefactsavailable;whereas^ofthefactsavailable^published
dataonUSdomesticpriceshadtoberejectedbytheCommission,since
theexportersandimportersconcerneddisputedtheiraccuracyandsince
theCommissionhadreasontobelievethatevenifthesepricesaccurately
reflectedconditions ontheUSmarkettheywerenotsufficienttocover
theproducer'sfixedandvariablecosts;whereasconsequently theCommission
tookaccountofthefactthatin1981AlliedCorporation hadsubscribedto
apriceundertaking inordertokeepitsexportpricesinlinewithnormal
valueandthatinordertoavoidfuturediscrepancy betweennormalvalue
andexportpricestheundertaking includedanindexationformularequiring
thesixmonthlyadjustmentofexportprices;

-5-
WhereassinceAlliedCorporation hadmadetwolargeshipmentstotheCommunity
sincewithdrawing fromtheirpriceundertaking thereferenceperiodfor
thepurposesofestablishing dumpingwastakenfromthedateofthefirst
shipment (July1982)totheendof1982;whereastheCommission hasappliedindexation
the/formulaforthereferenceperiodandsincetheresultingpriceisthat
atwhichAlliedwouldhavehadtoexportinaccordance withthetermsof
thepriceundertaking ]?^susedthispricetoestablishthenormalvaluefor
thereferenceperiod;
WhereasKaiserandTranscontinental wererequiredtoapplythesameindexation
formulaasAlliedCorporation toadjusttheirexportpricessixmonthly;
WhereasalthoughKaisermadenodirectshipmentsduringtheperiodof
validityofitspriceundertaking ,theinvestigation revealedthatthe
singleshipmentmadebyTranscontinental duringthisperiodwasofproduct
manufactured byKaiser;whereas,consequently ,anormalvaluewasestablished
forKaiserbyapplyingtheformulaforadjustingKaiser'sexport
priceforthesixmonthperiodduringwhichthesingleshipmenttookplace,
i.e.thefirstsixmonthsof1982;
WhereassinceTranscontinental madenosalesoftheproductontheUS
domesticmarketandsincetheonlyshipment madebythiscompanytotheEEC
duringtherelevantperiodwasofproductmanufactured byKaiser,the
Commission considereditappropriate totakethenormalvalueestablished for
KaiserasthebasisforTranscontinental ^normalvalue;whereasadjustment
ofKaiser'snormalvaluewasmadetotakeaccountofareasonableprofit
marginforTranscontinental ;whereasforthispurpose 5%beforetaxationwas
considered reasonable;

WhereasforAlliedandTranscontinental exportpricesweredetermined on
thebasisofthepricesactuallypaidfortheproductsexportedtothe
Community;
Whereas,sinceKaisermadenodirectshipmentstotheCommunityduringthe
relevantperiodbutexportedviaTranscontinental andsinceduringthe
investigation Transcontinental wouldnotrevealthepriceitpaidtoKaiser
fortheproduct,theCommission determinedKaiser'sexportpricebyreducing
thatofTranscontinental bytheamountofareasonableprofitmargin
fortheresaleofsuchproducttotheCommunity,namely5%;whereas,in
addition,Kaiser'sundertaking pricewassignificantly higherthanthatof
Transcontinental ;whereasKaiserwasrequiredbythetermsofitsundertaking
totakeallpossiblestepstoensurethattheundertaking wasnotevaded
byresalesmadeforexporttotheCommunityofproductssoldincountries
notmembersoftheCommunity;whereastheCommission therefore hasreasonto
believethatKaiser'sundertaking hasbeenviolated;
Whereasallcomparisons ofnormalvalueswithexportpricesweremadeat
anFOBUSportlevel;
Whereassuchcomparisons showtheexistenceofdumpinginrespectof
thethreecompaniesconcerned,themarginsofdumpingbeingequaltothe
amountsbywhichthenormalvaluesasestablished exceedthepricesfor
exporttotheCommunity;
WhereassinceAlliedCorporation madeshipmentsatdifferentpricelevels
aweightedaveragedumpingmarginforthiscompanywasdetermined;
Whereasthemarginsvariedaccordingtoeachexporterandwereasfollows:
AlliedCorporation 19.05%
KaiserAluminumDomestic/International SalesCorporation 12.13%
Transcontinental Fertilizer Company12.01%;
WhereastheCommission consideredthattheresultsofitsinvestigation
providedasaccurate abasisfordetermination ofthelevelofdumpingas
possibleandthatlowerlevelswould constitute abonusforAllied
Corporation'swithdrawal fromitsundertaking andsubsequentnon-cooperation
andthewithdrawal fromtheir undertakings byKaiserand
Transcontinental ;

Whereaswithregardtotheinjurycausedbythedumpedimportstheevidence
availabletotheCommission showsthatforthecompanies concernedthe
quantityoftheseimportsforthefirsteightmonthsof1982amountedto
118850tonneswhich,iftakenonanannualbasis,wouldaccountfor
some12%oftotalCommunityconsumption ofUAN;
WhereasthepricespaidintheCommunityforthedumpedproductsin
questionsignificantly undercutthepricesoftheCommunityproducers;
WhereastheimpactonthisCommunityindustryhasbeenthatlossescontinue
tobemadeonUANsales;
Whereasinconsidering whetherinjuryhasbeencausedbyotherfactorsthe
evidenceavailable totheCommission showsthat
certainotherCommunityproducerssituatedinotherMemberStates
,,.,of.UAN.haveenteredthemarketandincreasedtheirsales/partlcularly.inFrance;
whereas,however,theinvestigation hasshownthatthelowlevelofthese
producers'pricesresultinginconsiderable losseswasduetothefactthat
theyhadtocompetewiththedumpedimports;whereas,accordingly,injury
causedbythedumpedimportshasbeensustainedbyproducersthroughout
theCommunityandtheallegationoftheexportersandimportersconcerned
thatanyinjurytoFrenchandGermanproducerswassolelyasaresultof
increasedsalesofUANfromotherCommunityproducerscannotbesupported;
Whereas,furthermore,theCommissioniscurrentlyundertaking ananti-
dumpingreviewprocedureconcerning theremainingexportsofUANtothe
Community;
Whereastheimpact ofthedumpedimportsofthecompanies
concerned hastherefore beenisolatedfromthatoftheotherexportssubject
totheabovereviewinvestigation ;
Whereastheexporters andimportersconcernedfurtherallegedthatthe
Frenchproducers,comprising 43%ofCommunityproductionofUANcouldnot
beconsideredtohavesustainedinjuryinviewoftheDecisionofthe
ianalteration ofMinisterforCompetition requiring/certainaspectsoftheFrenchproducers
4BulletinOfficieldelaConcurrence etdelaConsommation of12.12.1981

pricing policy regarding ,inter alia ,nitrogen based fertilizers ;
whereas they further alleged that although this decision refers
toboth solid (mainly ammonium nitrate )andliquid (UAN )nitrogen based
fertilizers this does notreduce itsrelevance since ammonium nitrate
however ,andUANareeffectively like products ; whereas ^/initsinvestigation
theCommission sought and verified data relating toproduction and sales
ofUAN,this data clearly permitting separate identification ofthe
product concerned ;wherens theCommission issatisfied that inthecourse of
this investigation itreceived correct information ontheparticular situation
relating toCommunity producers ofUAN ;whereas theCommission ,inthe light
ofthis information issatisfied that thedumped imports ofUAN from the
companies concerned have caused material injury totheCommunity producers ,,
including those inFrance ;whereas theCommission sees nocontradiction
between this specific injury finding regarding UAN and theDecision of~the
French authorities which referred tothebehaviour offertilizer producers
inrelation toamuch wider range ofboth phosphorous andnitrogen based
fertilizers ;
Whereas norepresentations have been received bytheCommission from con­
sumers intheCommunity ;whereas inany case the interest ofconsumers in
theCommunity isnotserved inthe long runbyaCommunity industry weakened
orreduced bypersistent dumping ;whereas inthese circumstances protection
oftheCommunity 'sinterests calls for the imposition ofdefinitive anti-
dumping duties onurea ammonium nitrate solution fertilizer originating in
theUnited States ofAmerica andexported bythethree companies concerned ,
which ,having regard totheextent ofinjury caused ,should beequal to
thedumping margins found ,andforthedefinitive collection ofallamounts
secured byway ofprovisional duty inrespect oftheproduct concerned ;
Whereas theexporters andimporters concerned were informed oftheCommission 's
findings inaccordance with Article 7ofthesaid Council Regulation (EEC )
N°3017 /79;
Whereas ,however ,these definitive measures regarding theimports bythose
exporters which have withdrawn from their undertakings shall not inany
wayprejudice the results ofthereview procedure regarding other exports of
UANfrom theUSAcurrently being undertaken bytheCommission ;
Whereas ,until thecurrent oranysubsequent review procedure requires the
repeal ,annulment oramendment ofRegulation (EEC)N3349/81itshall remain
inforce ,
HAS ADOPTED THE FOLLOWING REGULATION :

Article 1
1.Adefinitive anti-dumping dutyisherebyimposedonureaammonium
nitratesolutionfertiliser,fallingwithinCommonCustomsTariff
subheading ex31.02C-'"•acorresponding toNIMEXEcodeex31.02-90exported
byAlliedCorpora *ion..KaiserAluminumDomesticandInternational Sales
Corporation andTranscontinental Fertilizer Company.
2.Theratesofdutyshallbebasedonthecustomsvaluedeterminedin
accordancewithCouncilRegulation (EEC)N°1224/80of28May1980onthe
1valuationofgoodsforcustomspurposesandareasfollows:
AlliedCorporation 19.05%
KaiserAluminumDomesticandInternational SalesCorporation 12.13/£
Transcontinental Fertilizer Company 12.01%
3.Theprovisionsinforcefortheapplication ofcustomsdutiesshall
applytotheduty.
Article 2
Theamountssecuredbywayofprovisional dutypursuanttoRegulation
(EEC)N°1976/82shallbedefinitively collectedatarateof
6.5%forexportsbyAlliedCorporation
6.5%forexportsbyTranscontinental Fertilizer Company
5.0%forexportsbyKaiserAluminumDomesticandInternational Sales
Corporation.
Article 3
ThisRegulationshallenterintoforceonthedayfollowingitspublication
intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels FortheCouncil
10JN°L134,31.05.1980