Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1784/2000 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain malleable cast iron tube or pipe fittings originating in Brazil, the Czech Republic, Japan, the People's Republic of China, the Republic of Korea and Thailand

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. By Regulation (EC) No 1784/2000, the Council imposed definitive anti-dumping duties on imports of certain malleable cast iron tube or pipe fittings originating, inter alia, in the Czech Republic, except where this product is exported by the Czech exporting producer Moravske Zelezárny a.s. from which the Commission, by Regulation (EC) No 449/2000, has accepted a price undertaking.

2. Following breaches of the undertaking, the Commission is withdrawing acceptance of the undertaking and is amending Regulation (EC) No 449/2000 accordingly.

3. In view of this, it is necessary to amend Regulation (EC) No 1784/2000 which grants an exemption to the anti-dumping duties to the company concerned.

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1784/2000 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain malleable cast iron tube or pipe fittings originating in Brazil, the Czech Republic, Japan, the People's Republic of China, the Republic of Korea and Thailand

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community [1], and in particular Articles 8 and 9 thereof,

[1] OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

Having regard to the proposal submitted by the Commission after consulting the Advisory Committee,

Whereas:

A. PREVIOUS PROCEDURE

(1) On 29 May 1999, by means of a notice published in the Official Journal of the European Communities, the Commission announced the initiation of an anti-dumping proceeding [2] in respect of imports of certain malleable cast iron tube or pipe fittings (the product concerned) originating in Brazil, Croatia, the Czech Republic, the Federal Republic of Yugoslavia, Japan, the People's Republic of China, the Republic of Korea and Thailand.

[2] OJ C 151, 29.5.1999, p. 21.

(2) This proceeding resulted in provisional anti-dumping duties being imposed in February 2000 against Brazil, the Czech Republic, Japan, the People's Republic of China, the Republic of Korea and Thailand by Commission Regulation (EC) No 449/2000 [3] in order to eliminate the injurious effects of dumping.

[3] OJ L 55, 29.2.2000, p. 3.

(3) In the same Regulation, the Commission accepted an undertaking offered by an exporting producer in the Czech Republic, Moravske Zelezárny a.s. (Moravske). Subject to the conditions set out in Regulation (EC) No 449/2000, imports of the product concerned into the Community manufactured by this company were exempted from the said provisional anti-dumping duties, pursuant to Article 2 (1) of the same Regulation.

(4) Definitive duties were later imposed against Brazil, the Czech Republic, Japan, the People's Republic of China, the Republic of Korea and Thailand by Council Regulation (EC) No 1784/2000 [4]. Subject to the conditions set out therein, this Regulation also granted Moravske an exemption to the definitive anti-dumping duties as an undertaking had already been accepted definitively from this company at the provisional stage of the proceeding.

[4] OJ L 208, 18.8.2000, p. 8.

B. FAILURE TO COMPLY WITH THE UNDERTAKING

(5) The undertaking offered in the present case obliges the company concerned, inter alia, to export the product concerned to the Community at or above certain minimum import price levels (MIPs) specified therein. The company also undertakes not to circumvent the undertaking by making compensatory arrangements with any other party which causes the net price paid by the first independent customer in the Community to be below the MIPs. Furthermore, In addition, Moravske is obliged to send to the European Commission a quarterly report of all its export sales of the product concerned to the European Community.

(6) During a recent on-spot verification visit to the premises of Moravske to verify the accuracy and veracity of data submitted in the said quarterly reports, it was found that the company had breached its undertaking by establishing a compensation scheme which enabled some of its products subject to the undertaking to be sold in the Community at prices below the MIPs. In addition, the company had omitted to report to the Commission seventeen sales invoices for exports of the product subject to the undertaking.

(7) Commission Regulation (EC) No .../... sets out in more detail the nature of the breaches found.

(8) In view of these breaches, acceptance of the undertaking offered by Moravske (UT10, Taric additional code A097) has been withdrawn by Commission Regulation (EC) No .../... and a definitive anti-dumping duty should be imposed forthwith on imports of the products concerned manufactured by Moravske.

(9) In accordance with Article 8 (9) of Regulation (EC) No 384/96, the rate of the anti-dumping duty must be established on the basis of the facts established within the context of the investigation which led to the undertaking. As the investigation in question was concluded by a final determination as to dumping and injury by Regulation (EC ) No 1784/2000, it is considered appropriate that the definitive anti-dumping rate is set at the level and in the form imposed by that Regulation, namely 26.1% of the net, free-at-Community-frontier price, before duty.

C. AMENDMENT OF REGULATION (EC) No 1784/2000

(10) In view of the above, Articles 1 (2) and 2 (3) of Regulation (EC) No 1784/2000 should be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

1. In the table in Article 1 (2) of Council Regulation (EC) No 1784/2000, the TARIC additional code "A999" for the Czech Republic is replaced by "-".

2. The table in Article 2 (3) of Council Regulation (EC) No 1784/2000 is replaced by the following table:

>TABLE POSITION>

Article 2

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President