COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC93) 641 final 
Brussels, 10 December 1993 
Proposal for a 
COUNCIL REGULATION (EC) 
imposing a definitive anti dumping duty on imports 
into the Community ol bookbound photo albumu originating 
in the People's Republic ot China and collecting 
definitively the provisional anti-dumping duty. 
(presented by the Commission) 
A 
COUNCIL REGULATION (EC) No. /93 
Of 
imposing a definitive anti-dumping duty on imports 
into the Community of bookbound photo albums originating 
in the People's Republic of China and collecting 
definitively the provisional anti-dumping duty. 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European *"* . 
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 , and in particular 
Article 12 thereof, 
Having regard to the proposal presented by the Commission after-
consultation within the Advisory Committee as provided for by the above 
Regulation, 
(I) OJ No L 209, ?.. 8. 19HH, p.l 
/y 
Whereas : 
A- PROVISIONAL MEASURES 
(1) By Regulation (EEC) No.2477/93 ( , the Commission imposed a 
provisional anti-dumping duty on imports into the Community of book 
bound photo albums originating in the People's Republic of China 
and falling within CN code 48205000. 
B. SUBSEQUENT PROCEDURE 
(2) Following the imposition of the provisional anti-dumping duty the 
following parties submitted comments in writing: 
Exporter of book bound photo albums originating in the People's 
Republic of China. 
Climax Paper Converters Ltd., Hong Kong. 
Community producers: 
Germany : 
- Walter Aulfes, Mûnchen. 
- Ludwig Fleischmann GmbH & Co. KG, Fulda. 
- Karl Walter GmbH & Co. KG, Nettetal. 
Holson GmbH, Alsdorf. 
Netherlands : 
- Honzo B.V., Roermond. 
(2) OJ No L 228 9. 9. 1993, p.16 
3 
Independent importer: 
WAHA, Gebrauchsgûter import Handelsgesellschaft mbH, Germany 
(3) Parties who so requested were granted an opportunity to be heard by 
the Commission. The parties were informed ol the essential facts 
and considerations on the basis ot which it wus intended to 
recommend ttie imposition of definitive anti-dumping measures and 
the definitive collection of amounts secured by way of provisional 
duty. They were also granted a period within which to make 
representations subsequent to the disclosure. 
(4) The parties' comments were considered, and, where appropriate, the 
Commission's findings were modified to take account of them. 
(M The invest igat;ion overran the normal duration of one year provided 
for in Article 7 (9) (a) of Regulation (EEC) No. 2423/88 due to 
the time expended in finding an appropriate reference country for 
establishment of normal value. 
C. PRODUCT UNDER INVESTIGATION AND LIKE PRODUCT 
(6) As no new arguments have been presented regarding the product under 
consideration and the like product, the Council confirms the 
findings of the Commission as set out in recitals 7 to 10 of the 
provisional Regulation. 
D. COMMUNITY INDUSTRY 
(7) No arguments have been presented regarding the Community industry. 
The Council therefore, confirms the findings of the Commission as 
set out in recital 26 of the provisional Regulation. 
INDIVIDUAL TREATMENT 
(8) in Recitals 13 to 18 of Regulation (EEC) No. 2477/93, the 
Commission outlined the general and specific reasons why it was not 
appropriate to grant individual treatment in this case. 
Climax Paper Converters Ltd., (hereinafter Climax), the Hong Kong 
based exporter of Chinese bookbound photo albums, contested the 
Commission's decision not to grant individual treatment to its 
exports on the basis of its dumping margin. The exporter stressed 
that it is a profit oriented company, based in Hong Kong and 
operating under open market principles. The manufacturing 
operation in the People's Republic of China, it alleged, is 
governed by these same market principles. The exporter further 
alleged that as it was the sole cooperating exporter it is doubly 
penalised since it suffers the impact of the dumping" margin 
calculated for non-cooperating exporters. 
(9) In it's preliminary determination the Commission outlined in detail 
at recital 18 the specific reasons why Climax was not entitled to 
individual treatment. Since then no new arguments have been put 
forward establishing that Climax is free to act autononmcusly in 
its business decisions in the People's Republic of China. The 
exclusion of individual treatment and consequently the 
establishment of a single dumping margin has an impact on the 
cooperating exporter. However no other solution is practicable 
since the overriding consideration must remain that all exports 
from countries referred to in Article 2 (5) of the Basic-
Regulation must be subject to a single country-wide duty for the 
reasons set out in recitals 13 to 17 of the provisional Regulation 
and, in particular, if it is not established that individual 
exporters are free to act independently from the State in the 
conduct of their business affairs. 
The Commission has, therefore, come to the conclusion that it is 
appropriate in this case to establish a single anti-dumping duty 
for all exports from the People's Republic of China. 
The Council confirms this conclusion. 
é 
F. DUMPING 
1. Normal Value 
(10) In the provisional duty determination the Commission concluded that 
South Korea was an appropriate analogue country for the 
establishment of the normal value of Chinese exports to the 
Community and normal value was consequently established on the 
basis of Article 2 (b) (b) of the Basic Regulation, i.e. the 
constructed va Lue of the like product in a market economy country, 
South Korea. 
(11) The complainant Community producers argued that South Korea was not 
an appropriate and reasonable reference country for the 
determination of the normal value and reiterated that the normal 
value should have been established under Article 2 (5) (c) of the 
Basic Regulation on the basis of prices payable in the Community 
for the like product. It was contended that, although a comparable 
product is manufactured in South Korea, the existence of anti 
dumping measures against South Korean producers established by 
Commission Decision No. 90/241/EEC^ may have influenced the 
competitive situation of South Korean exporters and affected the 
level of selling, general and administrative expenses and profit 
margin obtaining in the South Korean market. 
(12) The Commission rejected this argument since all of the elements on 
which the normal value was based as set out in recitals 21 and 22 
of the provisional Regulation were subject to normal market forces 
and there is no reason to consider that they were affected by 
(3) OJ No. L 138, 31.5.1990, P.48 
î 
existing anti-dumping measures i.e. price undertakings. Moreover 
reference to Article 2 (5) (c) is only appropriate if either 
domestic prices or constructed value does -not provide an adequate 
basis. Since such a basis was found this excludes the application 
of Article 2 (5) (c) . 
The Council confirms this approach. 
2. Export Price 
(13) Climax contested the methodology used to establish the export price 
of bookbound photo albums from the People's Republic of China. It 
argued that t he 5% profit margin deducted from the Hong Kong 
export price, estimated by the Commission to be a normal profit 
realised on sales of photo albums of Chinese origin occurring via 
in Hong Kong, was excessive. It alleged that a 1% or 2% profit 
margin was more appropriate for the transhipment of goods from the 
People's Republic of China to Hong Kong Harbour. 
(14) The Commission rejected the exporter's argument since the resale of 
book bound albums in Hong Kong is an extensive commercial operation 
requiring an appropriate infrastructure. Therefore a profit margin 
of 5% is considered reasonable to remunerate the effort involved 
and therefore an appropriate deduction in order to determine the 
export price ex-China. 
(15) The Commission set out, in recital 23 of the provisional 
Regulation, the methodology used to determine the export prices of 
the remaining exports where no information was available. These 
export prices were determined on the basis of the facts available, 
in accordance with Article 7 (7) (b) of the Basic Regulation. 
s 
(16) Climax contested the methodology used to determine these prices and 
argued that, since the Eurostatistics for CN Code 48205000 embrace 
other types of albums, the Commission's estimate of the.volume of 
bookbound albums imported under this CN code was arbitrary. 
(17) In estimating the volume of bookbound albums imported under CN 
Code 48205000 the Commission knew the precise volume of bookbound 
albums exported by Climax and thus ascertained the volume of albums 
of whatever type, which made up the balance imported under the CN 
Code. It was conservatively estimated that 50% of the remaining 
balance under the CN Code were bookbound photo albums since it was 
alleged that several manufacturers of bookbound albums in Hong Kong 
relocated their production to the People's Republic of China during 
1989 or 1990. Since publication of the provisional findings it has 
been confirmed by an importer that, indeed, three manufactueres 
relocated and commenced production in the People's Republic of 
China which confirms that the attribution of 50% of the balance to 
bookbound photo albums was a conservative estimate. Furthermore, 
as Climax is apparently the main exporter of this product to the 
Community, the attribution of 50% of the balance under the CN Code 
to other bookbound album exporters remains the most reasonable and 
accurate approach. 
(18) Climax also argued that the export prices of the non-cooperating 
producers should have been established on a model by model basis. 
.3 
(19) In establishing the export prices of the non-cooperating producers, 
the Commission took account of the sub-categories of bookbound 
photo albums sold by Climax. The two elements which delineate a 
sub-category are the size of the inner sheet and outer cover and 
the number of sheets contained in the albums. Indeed, these 
criteria are used by Climax to identity their albums and are the 
key factors used to compare albums of different producers. 
(20) Models within a sub-category are merely variations arising due to 
the colour of the outside cover, the design of the outside cover or 
other incidental features peculiar to an individual producer. 
(21) In determining export prices for the non-cooperating producers the 
objective was to base these prices on the lowest prices at which 
Climax sold bookbound albums within a sub-category always ensuring 
that sales within the sub-category concerned could be considered 
representative. While the Commission rejected the argument that 
prices should have been established on a model by model basis, it 
re-considered the representativeness of the sub-categories included 
in the exercise. In order to ensure that models were included from 
as many sub-categories as possible, further export transactions 
have been included thus ensuring that all sub-categories where 
sales exceeded 5% of total sales and which were, therefore, 
sufficiently representative, were included in the sample. 
The Council confirms this approach. 
^ 
3. Comparison 
(22) As far as recital 24 of Regulation (EEC) No. 2477/93 is concerned, 
no evidence was received to alter the Commission's provisional 
conclusion. 
The Council therefore confirms this conclusion. 
4. Dumping Margin 
(23) No further arguments were adduced on the methodology used by the 
Commission in its preliminary determination of a single dumping 
margin for all Chinese exports. Therefore one dumping margin has 
been established for the People's Republic of China on the basis of 
a weighted average of the dumping margin for which information was 
available and the dumping margin determined on the basis of the 
facts available in accordance with Article 7 (7) (b) (see recital 
15) of the Basic Regulation for the remaining exports for which no 
information was received. 
On the basis of the modification made to the determination of 
export prices for the non-cooperating producers, the dumping margin 
for exports from the People's Republic of China has been 
established on a weighted average basis at 18.6%. • '' • 
The Council confirms this conclusion. 
^ 
G. INJURY 
1. Total consumption, volume and market shares of dumped imports. 
(24) All figures are confirmed except the data relating to Community 
consumption. During the preliminary investigation, it was 
estimated that thirty per cent of the volume of albums exported by 
Indonesian producers were of the bookbound category. However it 
was subsequently established that Indonesian exports of albums are 
mainly of the spiral and pocket type category and that bookbound 
exports are negligible. Therefore the data on Indonesian bookbound 
albums was overestimated and consequently Community consumption 
considered to be in the order of 15,500 tonnes during the 
investigation period. 
2. Prices of dumped imports. 
(25) In recital 10 of Regulation (EEC) No. 2477/93 it was acknowledged 
that there were some physical differences between the imported 
product and Community production. A 10% adjustment was estimated 
to be appropriate to account for such differences and was taken 
into account in establishing the price undercutting margin 
referred to in recital 29 of the provisional Regulation. 
(26) The Community industry challenged the 10% adjustment granted for 
apparent differences of the imported product vis-a-vis Community 
production in the determination of the undercutting margin. It 
argued that a 5% reduction in price was more reasonable to account 
for material differences. 
IL 
(27) The Commission has considered this argument but finds no reason to 
deviate from the original figure based on a visual comparison of 
export models and Community production. 
3 . ••• State of the Community Industry 
(28) No new arguments were put forward on the state of the Community 
industry. The Council therefore confirms the findings of the 
Commission as set out in recitals 30 to 35 of the provisional 
Regulation. 
4. Conclusion as to injury 
(29) Climax requested that its original submission on injury made prior 
to the adoption of provisional measures be again considered before 
a definitive determination is made. 
The Commission re-examined the exporter's submission but found that 
it had already replied in full to the arguments put forward therein 
and since there were no fresh grounds to modify the provisional 
determination confirms that the Community industry suffered 
material injury. 
The Council confirms this conclusion. 
M 
H. CAUSE OF INJURY 
(a) Effect of dumped imports 
(30) The Commission has, in its preliminary conclusions, set out in 
detail the effect of the dumped imports on the Community industry 
(recitals 37 and 38 of Regulation (EEC) No. 2477/93) . No new 
arguments were put forward in this connection and, accordingly the 
Council confirms these conclusions. 
(b) Other factors. 
(31) As far as recitals 39 to 40 of Regulation (EEC) No. 2477/93 are 
concerned no new evidence was received to change the Commission's 
provisional findings. The Council consequently confirms these 
findings. 
COMMUNITY INTEREST 
(32) As stated in recital 48 of Regulation (EEC) No. 2477/93, the 
Commission concluded that it was in the interests of the Community 
that measures be taken. Climax requested that its original 
submission on Community interest be again considered before a 
definitive determination is made. 
11 
(33) The Commission must point out that the argument put forward by 
Climax at the provisional stage, i.e. that the only result; of the 
imposit ton <>l measures on Chinese cxpuii :; would be to giant, an 
advantage it its competitors particularly Indonesian producers, 
has been addressed in recital 46 of the provisional Regulation. No 
new arguments have been presented which would cause the Commission 
to alter the conclusions set out in that recital. 
The Council confirms this conclusion. 
J. DEFINITIVE DUTY 
(34) Given that the injury level exceeded the dumping margin, the duty 
should be based on the latter in accordance with Article 13 (3) of 
the Basic Regulation. 
K. COLLECTION OF DEFINITIVE DUTIES 
(35) In view of the dumping margin established, and the seriousness of 
the injury caused to the Community industry, the Council considered 
it necessary., that amounts secured by way of provisional anti­
dumping duty should be definitively collected at the rate 
corresponding to the definitive rate of duty. 
\r 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. A definitive anti-dumping duty is hereby imposed on imports of 
bookbound photo albums falling within CN code 48205000, (Taric Code 
4820500 10) originating in the People's Republic of China. 
2. The rate of the duty, applicable to the net, f ree-at-Community-
frontier price, before duty, shall be 18.6%. 
3. The provisions in force concerning customs duties shall apply. 
At Licit: 2 
The amounts secured by way of provisional anti-dumping duty imposed by 
Regulation (EEC) No. 2477/93 shall be definitively collected at the 
rate corresponding to the definitive duty. 
Article 3 
This Regulation shall enter into force on the day following that of 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 Council 
The President 
ISSN 0254-1475 
COM (93) 641 final 
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