ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)127
Vol.1982/0044

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)127 final
: Brussels-11March1982
Proposalfora
COUNCILDECISION (EEC)
terminating ananti-dumping proceedinginrespectofimportsofupright
pianosoriginating inCzechoslovakia ,theGermanDemocratic Republicand
,Polandx>
V\
\/Poland? ■if]
c•,^•OJ
s»».^/
(submittedtotheCouncilbytheCommission )
. ■ ;
COM(82)127 final
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EXPLANATORY MEMORANDUM
1.InFebruary1981theCommissioninitiatedananti-dumping proceeding
againstimportsofuprightpianosfromtheGermanDemocraticRepublicand
1Poland.Thisproceeding wassubsequently extendedtocoverinaddition
2importsofuprightpianosfromCzechoslovakia andtheUSSR„t
2.TheCommission'sinvestigation hasestablished theexistenceofdumping
marginsfrommid-1980toSeptember 1981rangingfrom14%to43%(depending
onmodel)forCzechoslovakia ,theGermanDemocraticRepublicandPoland,
andfrom56%to80%fortheUSSR.Indetermining thesedumpingmargins,
theCommission tookasnormalvaluetheaverageexportpricetotheCommunity
ofcomparable Finnishpianos,adjustedasdeemedappropriate fordifferences
inphysicalcharacteristics .
3.TheCommission^investigation alsoshowsthatimportsofthesedumped
pianos,throughtheincreaseintheiralreadypredominant shareofthe
marketforlow-priced beginners' pianos,andthroughtheirundercutting of
Communityproducer'sprices,havecausedmaterialinjurytothoseCommunity
producers engagedinthissectorofthemarket,whosemarketshare,level
ofproduction andprofitability havesufferedsignificant reverses.
4.TheexportersinCzechoslovakia ,theGermanDemocratic Republicand
Polandhavevoluntarily undertakentoraisetheirpricestolevelswhich
theCommission considersadequatetoeliminatethemarginsofdumpingor
theinjuriouseffectsthereof.
5.However,whentheAdvisoryCommittee wasconsulted ontheacceptance
oftheseundertakings ,opinionsweredividedastowhetherprotective measures
werecalledfor.TheCommission hasconsequently decidedtoputtheissue
beforetheCouncilbysubmitting,inaccordancewithArticle9(1)and10(1)
ofRegulation(EEC)No3017/79^,theattachedproposalforthetermination
oftheproceeding onthebasisoftheacceptanceoftheundertakings
offered.
0JNoC35,18.02.1981,p.2
20JNoC181,23.07.1981,p.3
30JNoL339,31.12.1979,p.1

PROPOSAL FOBA
COUNCILDECISION (EEC)
terminating ananti-dumping proceedinginrespectofimportsofupright
pianosoriginating inCzechoslovakia ,theGermanDemocraticRepublicandPoland
THECOUNCIL OFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)N°3017/79of20December1979
onprotectionagainstdumpedorsubsidizedimportsfromcountriesnot
1membersoftheEuropeanEconomicCommunity,andinparticularArticle
10thereof,
HavingregardtotheproposalsubmittedbytheCommissionafterconsultations
withintheAdvisoryCommitteesetupunderRegulation (EEC)N°3017/79,
WhereasinSeptember1980andJune1981theCommissionreceivedcomplaints
lodgedbytheConfederation desAssociations desFacteursd'Instruments de
MusiquedelaCEE(CAFIM)onbehalfofmanufacturers accountingforthe
majorpartoftheCommunityproductionofuprightpianos;
Whereassincetheformercomplaintprovidedsufficientevidenceofdumping
inrespectofthelikeproductoriginating*^theGermanDemocraticRepublic
andPoland,andofmaterialinjuryresultingtherefrom,theCommission
accordingly announced,byanoticepublishedintheOfficialJournalofthe
2EuropeanCommunities,theinitiationofaproceedingconcerningimportsof
uprightpianosoriginating intheGermanDemocraticRepublicandPolandand
commencedaninvestigation ofthematteratCommunitylevel;
Whereas,sincethelattercomplaintprovidedsufficientevidenceofdumping
inrespectofthelikeproductoriginatinginCzechoslovakia andtheUSSR,
andofmaterialinjuryresultingtherefrom,theCommissionaccordingly
announced,byanoticepublishedintheOfficialJournaloftheEuropean
Communities^,theextensionoftheaboveinvestigationtouprightpianos
originatinginCzechoslovakia andtheUSSR;
0JN°L339,31.12,1979,p.1
20JN°C35,18.02,1981,p.2
30JN°C181,23,07.1981,p.3

-2-
WhereastheCommissionofficially soadvisedtheexportersandimporters
knowntobeconcerned,aswellastheexportingcountriesandthe
complainants ;
'
WhereastheCommission hasgivenallpartiesdirectlyconcernedthe
opportunity tomakeknowntheirviewsinwritingandtobe^eardorally;
whereasneithertheexporterintheUSSR,noranyimporterofUSSRpianos,
tookadvantageofthisopportunity;whereasseveraloftheotherimporting
andexportingpartiesknowntobeconcernedhavetakentheopportunity to
t
makeknowntheirviewsinwriting;whereastheexportersinCzechoslovakia ,
theGermanDemocraticRepublicandPolandrequested,andweregranted,an
opportunity tomakeknowntheirviewsorally;!
!
Whereas,inordertoarriveatapreliminary determination ofdumpingand
injury,theCommission soughttoobtainandverifyallinformation which
itdeemedtobenefcessary;
:...
Whereas,inordertoverifytheexportpricestotheCommunityofthepianos
underinvestigation ,andtheresalepricesofthesepianosintheCommunity,
theCommissioncarriedoutinspections atthepremisesoftheprincipal
agentsandimportersconcerned,namely:CrossandTicherLtd,
London;FortinEuromusic,Paris;Furcht&Co,Milan;GeneralMusic, 1
LesEyzies,France;Hamm,Paris;Hanlet,Paris;MinnsMusicLtd,Bpurnemouth;
Ricordi,Milan;Sisme,Osimo;Whelpdale,MaxwellandCoddLtd.,London;
WhereastheCommission requestedandreceiveddetailedwrittensubmissions
fromthecomplainant Communityproducerswithrespecttothequestionof
injuryandcausationthereof;whereastheCommissionalsocarriedout
inspections atthepremisesofanumberofcomplainant Communityproducers,
namely:BarrattandRobinsonLtd,London;BentleyPianoCoL-d,Stroud
(Glos);FarfisaSpA,Ancona;Kemble&CoLtd,Bletchley (Bucks);RameauSA
Pianos,Ales,France;Whelpdale,MaxwellandCoddLtd,Londor,;

Whereasnoinformation wassubmittedby,oronbehalfof,anyCommunity
purchaserorconsumerofuprightpianos,otherthanbyfirmswhowere
alsopurchasingfromtheexportingcountriesunderinvestigation ;
Whereasalargenumberofdifferentmodelsandfinishesarecoveredbythe
investigation ;whereas,consequently,theCommission,initspreliminary
determination ofdumping,hasbasedallitscalculations ontheprices
chargedforuprightpianos110cminheight,with88notes,3pedalsand
mattmahoganyveneer,thisbeingintheCommission'sview,penerally
acceptedbytheinterestedparties,themostrepresentative model;
Whereas,indeterminingthenormalvaluefortheproductinquestion,the
Commissionhadtotakeintoaccountthefactthattheexportingcountries
concerneddonotoperatemarketeconomies;whereasthecomplainantinitially
proposedSouthAfricandomesticpricesasthebasisfornormalvalue;
whereas,afterhavingconsideredtheargumentsadvancedbytheinterested
partiestotheproceeding,theCommissionhasbaseditspreliminarydeter­
minationofnormalvalueonthepriceschargedforpianosmanufactured in
Finland;whereas,inarrivingatthisdecision,theCommissionhastaken.
intoaccountinparticularthephysicalsimilarityofFinnishpianosto
thoseunderinvestigation ,andtheproximitytosuppliesofkeyraw
materials;
Whereas,owingtotheparticularstructureoftheretailmarketforpianos
inFinland,andthefactthatthegreaterpartofFinnishproductionis
exported,muchofittotheCommunity,theCommissionconsideredthatit
wasappropriate andnotunreasonable touseasbasisfornormalvaluethe
weightedaverageofFinnishexportpricestotheCommunity;
Whereas,afterhavingconsideredtheargumentsandevidencepresentedby
interestedparties,theCommissionadjustedtheabovenormalvalueto
takeaccountofcertaindifferencesinphysicalcharacteristics asbetween,
ontheonehand,Finnishpianosand,ontheother,thepianosexported
bythecountriesunderinvestigation ;whereasinthiscontextaccountwas
takenofthequalityoftheaction,thetypeofsoundboardused,andthe
rawmaterialusedforthecabinet;whereastheallowanceforsuchdifference
wasbasedontheCosfmission® sbestestimateoftheeffectthesewould

-u-
havehadonthepricechargedforFinnishpianosexportedtotheCommunity;
whereasthenormalvaluewasalsoadjustedtotakeaccountoftheinferior
conditioninwhichthesepianosaredeliveredtotheimporterinthe
Community,comparedwithFinnishpianos;whereastheallowanceforthis
differencewasbasedonthecosttoimportersofremedyingthedefects
involved;whereas,inthecaseoftheUSSR,theCommissiondeemedit
appropriatetomaketheseadjustments,despitethefactthatnointerested
partyhadclaimedthem;
Whereas,asconcernstheexportprice,theCommissionhasused,foreach
exportingcountry,theactualexportpricetotheCommunityforthe
representative modelchosen;
Whereasacomparisonbetweenthenormalvalueandtheexportpriceshows
thefollowingmarginsofdumping,expressedasapercentageoftheprice
freeatCommunityfrontier:
1980(secondhalf)Situationat1.9.1981
Czechoslovakia 21.1% 23.0%
GermanDemocraticRepublic from21.8%to33.7%from14.0%to42.8%
weightedaverage26.6%weightedaverage27.3%
Poland from17.2%to30.2%from14.2%to35.0%
weightedaverage21.1%weightedaverage23.6%
USSR 55.8% 79.7%
Whereas,withregardtotheinjurycausedbythedumpedimportstothe
Communityindustry,theevidenceavailabletotheCommissionduringthe
preliminaryinvestigation showedthattotalimportsofuprightpianosfrom
thecountriesinquestionincreasedfrom25136in1978to31213in1980,
anincreaseof24%;
Whereas,inexaminingthemarketsharesheldrespectively bydumpedimports
andbyCommunityproducers,theCommissionhasconcludedthat,byvirtueof
theirstyleandquality,thepianosfromthecountriesinquestionare
competingmainlyInaveryspecificsectorofthemarket,namelythatfor

low-priced beginner 'spianos ;whereas aseparate identification ofthis
market hasbeen possible ,since such pianos areproduced only bycertain
producers inspecific countries ;whereas thesales Oftheimported pianos
under investigation should consequently bemeasured against themarket for
such low-priced beginner 'spianos ;whereas most oftheCommunity producers
directly competing with thedumped imports inthemarket forlow-priced
beginner 'spianos aresituated inthe UK;
Whereas ,according totheCommission 'sbest estimates ,theshare oftheCommunity
market held bydumped pianos from thecountries inquestion stood at40%
in1978 and rose to43% in1980 ;
Whereas ,depending onthecountry oforigin ,theaverage CIFpripe ofthe
dumped pianos was,in1978 ,between 28% (inthecase ofCzechoslovakia )and
47% (inthecase oftheUSSR )below theaverage unit sales price ofCommunity
producers ofthis type ofpiano ;whereas in1980 this difference had
increased tobetween 39% (forCzechoslovakia )and56% (fortheUSSR );
whereas ,given thestructure ofthemarket forimported andCommunity -
produced pianos ,this indicates asubstantial andincreasing margin of
price undercutting ;whereas ,even taking into account theevidence available
concerning differences inquality between Community-produced pianos and
those under investigation ,theextent ofprice undercutting appears tothe
Commission tobegreater than themargins ofdumping determined ;
Whereas ,asregards theeffect ofthese dumped imports ontheCommunity
industry ,theevidence available totheCommission shows that total
Community production stood at55772pieces in1978 ,rose to57849pieces
in1979 ,andfell to54250pieces in1980 ;whereas intheUnited Kingdom ,
production fell from 18708pieces in1979 to13012 in1980 ,after having
previously increased from 18400 in1978 ;whereas inGermany ,where the
industry produces ahigher quality product notdirectly affected bythe
dumped imports ,production rose from 25800 in1978 ,to26500 in1979
and 27500 in1980 ;

f,
-6-
WhereastheevidenceavailabletotheCommission showsthatthenumbers
employedbyCommunitypianoproducers,otherthantheseinGermany,is
expectedtobe23%lowerin1981thanin1979;whereas,moreover,atleast
onemajorCommunityproducerhasbeenobligedconsiderably tocurtailthe
numberofhoursworkedin1981;
Whereastheshareofthemarketforlow-pricedbeginner'spianosheldby
Communityproducershas,accordingtotheCommission'sbestestimates,
fallenfrom39.5%in1978to30.7%in1980;
WhereastheevidenceavailabletotheCommission showsthatCommunity
producerscompetinginthismarkethavebeenunabletoraisetheirselling
pricessufficiently tocoverincreasesinproductioncosts,withtheresult
thattheirprofitability hasbeenseverelyerodedsince1979;
•i
'r
WhereastheCommissionhasconsideredtheinjurycausedbyotherfactors
which,individually orincombination,arealsoaffectingtheCommunity
«
'industry;whereas.ithasexaminedinparticularthelevelofconsumption
ofpianosintheCommunity,thepricesandlevelofnon-dumpedimports,and
o

,ir
theproblemswhichmayhavebeenfacedbyUKproducers asaresultof
theriseinthevalueofthepoundsterling;I
I
t
WhereastheevidenceavailabletotheCommission showsthattotal
consumption ofpianosintheCommunity rosefromapproximately 102000
piecesin1978toapproximately 126000piecesin1980;whereasasimilar
trendwasvisibleforlow-pricedbeginner'spianos,theCommission'sbest
estimateshowinganincreasefromapproximately 64000piecesin1978to
approximately 72500piecesin1980;
Whereastotalimportsofnon-dumped pianosrosefrom32646piecesin1978
to51379piecesin1980;whereasitisestimatedthattheshareofthe
marketforlowpricedbeginner'spianosheldbynon-dumped importsrose
from21.1%<13500pieces)in1978to26.4%(19140pieces)in1980;
whereasthisisconsiderably lessthantheshareheldbydumpedpianos;
whereastheCommission consequently considersthattheimpactonthemarket
ofnon-dumped pianoshaslikewisebeenconsiderably smallerthanthatof
dumpedpianos; ,!
\
S M/
Whereasithasbeensuggestedbysomeinterestedpartiesthatthedifficulties
facedbytheUKproducers havebeenprincipally theresultoftherisein
thevalueofthepoundsterling,andofrelatedeconomicfactors;^whereas,
however,UKexportsofpianostothirdcountries ,1increasedfrom4561pieces
in1979to4618piecesin1980,atatimewhentotalCommunityexportsof
pianosweredeclining;whereastheCommission consequently takestheview
thattheriseinthevalueofthepoundsterlingcannothavebeena
significant factorcausinginjurytotheUKindustryinrespectofits
exportsales,eithertothirdcountriesorwithintheCommunity;
Whereas,therefore,theimpactofnon-dumped importsonthemarketforlow-
pricedbeginner'spianosisintheCommission'sviewtheonlysignificant
otherfactorcausinginjurytotheCommunityindustry;whereas,however,
theCommission takesthepreliminary viewthat,despitethis,dumped imports
fromCzechoslovakia ,theGermanDemocraticRepublic,PolandandtheUSSR
have,bytheincreaseintheiralreadysubstantial marketshare,andbythe
increasedlevelofpriceundercutting,beenacauseofmaterial
injurytotheCommunityindustry;

Whereasinthesecircumstances,andinordertopreventinjurybeingcaused
duringtheinvestigation,theCommissionisoftheviewthattheinterests
oftheCommunityrequireimmediateintervention consistingintheimposition
ofaprovisional anti-dumpingdutyonimportsofuprightpianosoriginating
inCzechoslovakia ,theGermanDemocraticRepublic,PolandandtheUSSR
ataratewhich,havingregardtotheextentofinjurycaused,shouldbe
equaltothemarginofdumpingprovisionally established;
WhereasafterbeinginformedoftheresultsoftheCommission'sinvestigation
theexportersinCzechoslovakia ,theGermanDemocraticRepublicandPoland
voluntarily undertooktoincreasetheirpricestoalevelwhichthe
Commissionconsidersadequatetoeliminatethedumpingmarginprovisionally
established,ortheinjuriouseffectsthereof;whereas,however,duringthe
consultations withintheadvisorycommitteeconcerningtheacceptability
oftheseundertakings,certaindelegationsobjectedto.thetermination
oftheproceeding onthebasisofacceptanceoftheseundertakings ;
WhereastheCommissionhasconsequently submittedaproposalto,theCouncil
toterminatetheproceeding onthebasisoftheacceptanceofthe
undertakings offered,inrespectofpianosoriginating inthosethreecountries,
HASDECIDEDASFOLLOWS:
SoleArticle
Theanti-dumping proceedingconcerningimportsofuprightpianosoriginating
inCzechoslovakia ,theGermanDemocraticRepublic,PolandandtheUSSR,
isherebyterminatedinrespectofsuchgoodsoriginating inCzechoslovakia ,the
GermanDemocraticRepublicandPolandonthebasisoftheacceptanceofprice
undertakings offeredtotheCommissionbytheexportersconcerned,namely
Musicexport,Prague,Demusa,Berlin(East)andArsPolona,Warsaw.
DoneatBrussels, FortheCouncil