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COM (83) 560 
 
 
 
Vol. 1983/0 212 
  
 
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concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
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file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 560 final
Brussels, 19 September 1983
Proposal for a  
COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 191/80 imposing a definitive  
anti-dumping duty on imports of lithium hydroxide originating  
in the United States of America and the Soviet Union
(submitted to the Council by the Commission)
COM(83) 560 final

EXPLANATORY MEMORANDUM
1. In January 1980 a definitive anti-dumping duty was imposed by Regulation  
(EEC) No 191/80 on imports of lithium hydroxide originating in the  
United States of America and the Soviet Union. This duty was subsequently  
amended on 28 August 1980 by Regulation (EEC) No 2294/80 which fixed the  
new rate as being the amount by which the price per pound, free at  
Community frontier, before duty, is less than US$1.66.
2. In April 1983, following a complaint received from CEFIC, the European  
Council of Chemical Industry Federations, acting on behalf of the sole  
Community producer, the Commission commenced a review of the definitive  
duty and of the undertaking given by one of the American exporters. A notice to this  
effect was published in Official Journal of the European Communities No C 98 of 12 April 1983.
3. The review disclosed renewed dumping in respect of imports, the margins  
being 15.5% for the United States and 12% for the Soviet Union. Whilst  
imports from these two countries have decreased since the imposition of  
the definitive duty from 1 139 tonnes in 1980 to 702 tonnes in 1982 the  
market share of 45.8% obtained by these imports makes them the dominant  
force in the Community market. The resale prices of the dumped imports has  
been approximately 15% lower than that required to cover the costs of the  
sole Community producer who has, as a result, incurred heavy losses which  
raise doubts as to the continuation of production.
4. As a result of the review it is considered that the continued applica­
tion of the defnitive duty and the maintenance of price under­
takings was required to eliminate injury and prevent its recurrence. In  
view of the renewed dumping which has taken place as a result of the  
increase in the American domestic price and the consequent injury it is  
very probable that injury to the Community industry will again result if  
the defi litive duty is not increased and the undertakings are not increased  
to a higher level.
5. Both the American exporters known to be concerned have offered satis­
factory price undertakings which establish a minimum price of US$1.80 per lb  
at the Community frontier. The Soviet exporter has not participated in the

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review and it is proposed therefore that the definitive duty concerning  
imports from the Soviet Union and the United States of Lithium hydroxide  
be adjusted so as to equal the amount by which the price per pound,,  
free at Community frontier, before duty,is Less than US$1.80 and that  
those US exporters who have given undertakings be excluded from the duty.

Proposal for a
COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 191/80 imposing a definitive anti-dumping duty on  
imports of lithium hydroxide originating in the Uni tedStates of America and  
the Soviet Union
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 3017/79 of 20 December 1979
on protection against dumped or subsidized imports from countries not1members of the European Economic Community , as amended by Regulation (EEC)
No 1580/82^, and in particular Articles 12 and 14 thereof,
Having regard to the proposal submitted by the Commission after consultation  
within the Advisory Committee as provided for under the above Regulation,
Whereas,
A. PRIOR ACTION ■
1. By its Regulation (EEC) No 191/80^ the Council imposed a definitive  
anti-dumping duty on imports of lithium hydroxide falling within Common Customs  
Tariff subheading 28.28 B, corresponding to Nimexe code ex 28.28-10, originating  
in the United States of America and the Soviet Union.
2. Whereas that Regulation was subsequently amended by Regulation (EEC)
4No 2294/80 which changed the amount of duty to the amounl by which the  
free at Community frontier price of lithium hydroxide is less than  
US$1 66 per lb.
10J
20J
30J
40JNo L 339,  
No L 178,  
No L 23,  
No L 228,31.12.1979, p.  
22.06.1982, p.
30.01.1980, p.
30.08.1980, p.1.
9.
19.
59.

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B.  REVIEW PROCEDURE
3. The Commission has since received a complaint from CEFIC, the European  
Council of Chemical Industry Federations, acting on behalf of the sole  
Community producer of lithium hydroxide, requesting the review of the  
definitive anti-dumping duty and the price undertaking given by one of the  
American exporters.
4. Since the said request provided sufficient evidence to justify opening  
a review procedure, the Commission announced by a notice published in the  
Official Journal of the European Communities a review of the definitive  
anti-dumping duty on imports of lithium hydroxide originating in the
United States of America and the Soviet Union and commenced an investigation.
5. The Commission officially so advised the exporters and importers known  
to be concerned as well as the representatives of the United States and  
the complainants, and have given the parties directly concerned the  
opportunity to make known their views in writing and to request a hearing.  
Both of the American exporters took this opportunity to make their views  
known in writing and were granted hearings.
6.  Most of the importers made their views known in writing and some  
importers were granted hearings.
7. The Commission sought and verified all information it deemed to be  
necessary for the purposes of the review procedure; it carried out  
investigations at the premises of the following:
Community producer:
Chemetall GmbH, Frankfurt, Federal Republic of Germany
Exporters:
Foote Mineral Company, Exton, Pennsylvania, USA  
Lithium Corporation of America, Gastonia, North Carolina, USA
5 OJ No C 98, 12.04.1983, p. 2.

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Importer:
Lithium Corporation of Europe Ltd, Bromborough, United Kingdom.
8.  The enquiry into dumping covered the year ended 31 March 1983.
c . NORMAL VALUE
9. Normal value for American exporters was determined on the basis of the
domestic prices of those producers who exported to the EEC.
10. In order to establish whether the imports from the Soviet Union were  
dumped, the Commission had to take account of the fact that the Soviet  
Union does not have a market economy and the Commission therefore had to  
base its determination on the normal value in a market economy country;  
in this connection the complainant had suggested the United States' domestic  
market, this being the only known non-EEC market economy country which produces  
the like product. No objection was made to this suggestion and the  
Commission is satisfied that there is sufficient internal competition in  
the United States to ensure that price levels are in a reasonable proportion
to production costs; it is, therefore,
considered appropriate and not unreasonable to determine normal
value for imports originating in the Soviet Union on the basis of domestic  
prices in the United States.
D . E X P O R T  PRICE
11. Export prices for American exporters were determined on the basis of  
the prices actually paid or payable for the products sold for export to the  
Communit; .  With regard to exports from the Soviet Union, no information  
was provided to the Commission by the exporters or importers concerning  
export prices and these were consequently determined on the basis of the  
data provided in the complaint which was considered to be the best infor­
mation available.

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E. COMPARISON
12. In comparing normal value with export prices, the Commission took  
account, where appropriate, of differences affecting price comparability  
and, in particular, of differences in conditions and terms of sale. All  
comparisons were made at ex-works level.
F.  MARGINS
13. The above examination of the facts showed that the American exporter  
which had given an undertaking after the original investigation had respected  
the terms of its undertaking but that, in some cases, the increases in the  
prices on the United States domestic market had led to a resumption of  
dumping. For this exporter and for the other exporters concerned the  
weighted average margin of dumping, which is equal to the amount by which
the normal value as established exceeds the price for export to the Community,  
was as follows:
Exports from the USA 15 5%
Exports from the USSR 12.0%
G. INJURY
14. Statistical evidence available to the Commission shows that imports  
into the Community from the Soviet Union and the United States decreased  
from 1 139 tonnes in 1980 to 702 tonnes in 1982 and the market share obtained  
by these imports decreased from 54 9% to 45 8% during the same period.
15. The weighted average resale prices of the dumped imports in the  
Community were approximately 15% lower than those required to cover the  
costs of the sole Community producer and provide a reasonable profit. The  
resultant impact on this producer has been the incurring of a considerable  
loss which puts into jeopardy the continuation of the production of this  
product.
16. The Commission has considered whether injury has been caused by other  
factors. In this connection it has taken into account the imports of  
lithium hydroxide originating in the People's Republic of Chinq, which are

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the subject of an anti-dumping proceeding which was initiated at the same o*  
time as the review procedure .
17. Whilst dumped imports of this product from China have increased sub­
stantially between 1980 and 1982 and have been at prices which were even  
lower than those of American and Soviet origin, the market share of 25.5%  
obtained by Chinese exports in the Community is far inferior to the 45%  
obtained by the other exporters concerned who must thus be considered to  
have a dominant position in the EEC market. For this reason the Commission  
has been led to maintain its view that the continued application of the  
anti-dumping duty and the maintenance of price undertakings was a require­
ment for the elimination of injury and the prevention of its recurrence.
The renewal of dumping and consequent injury show that if the definitive  
duty is not increased and the undertakings are not increased to a higher  
level,material injury to the Community industry concerned would result.
H. COMMUNITY INTEREST
18. Community processing industries have argued that the continuation of  
protective measures would not be in the Community interest because it would  
adversely affect the competitive position on extra-Community markets. In  
view of^pirticularly serious difficulties facing the only Community producer,  
its strategic importance and the relatively low incidence of a price  
increase on the costs of the processing industry the Council has nevertheless  
come to. the conclusion that it is in the Community's interest that defi­
nitive measures be continued in respect of lithium hydroxide originating  
in the Soviet Union and the United States.
I. UNDERTAKINGS
19. The American exporters concerned were informed of the main findings of  
the review and commented on them. Foote Mineral Company, which had offered  
an undertaking in the original proceeding,volunteered to renew it at a  
level considered necessary to prevent renewed injury to the Community

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industry. The Lithium Corporation of America also voluntarily undertook  
to respect a minimum price for its exports. The effect of these under­
takings will be to maintain the import prices at the level necessary to  
prevent injury. In no case do the prices in these undertakings exceed the  
dumping margins found. The Council has therefore determined that imports  
of lithium hydroxide exported by the Foote Mineral Company and the Lithium  
Corporation of America should be excluded from the duty.
J. IN C R E A S E  IN R A T E  O F  DEFINITIVE D U T Y
20. In the light of the findings of the review, the definitive duty imposed  
by Regulation (EEC) No 191/80 and subsequently amended by Regulation (EEC)
No 2294/80 should be adjusted so as to fix a new free at Community frontier  
minimum price before duty of US$1 80 per lb in place of the former price  
of US$1 66 per lb.
H A S  A D O P T E D  THIS REGULATION:
Article 1
Article 1(1), (3) and (5) of Regulation (EEC) No 191/80 is hereby re­
placed by the following:
"1. A definitive anti-dumping duty is hereby imposed on imports of lithium hydroxide
falling within Common Customs Tariff subheading 28.28 B and corresponding  
to Nimexe code ex 28.28-10, originating in the United States of America and  
the Soviet Union. This duty shall not apply to lithium hydroxide manu­
factured and exported by Foote Mineral Company, USA and the Lithium .  
Corporation of America, USA.
The provisions in force concerning customs duties shall apply to this  
duty."
"3. For the purposes of this Regulation, the normal value of lithium  
hydroxide originating in the United States of America and the Soviet Union,  
adjusted to a free~at_Community~frontier basis, before duty, shall be  
US$1 80 per lb."

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"5. a) Where the product defined in paragraph 1 is not released for con­
sumption on the basis of the price to the first purchaser in the  
Community, the definitive anti-dumping duty shall be at the follow­
ing rates:
- 15 5% of the normal value of US$1 80 per lb for imports origina­
ting in the United States of America,
- 12% of the normal value of US$1.80 per lb for imports originating  
in the Soviet Union.
b) Where, however, the declaring party can provide satisfactory proof  
to the customs authorities that the price paid by the first purchaser
i) exceeds or is equal to the normal value of US$1 80 per lb, no  
duty shall be applied, or
ii) is lower than the normal value of US$1 80 per lb by less than  
15 5% for imports originating in the United States of America,  
or by less than 12% for imports originating in the Soviet Union,  
the duty shall be equal to the amount by which the said price  
is lower than the normal value.".
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 For the council,