COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 11.01.1996 
COM(96) 1 final 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 2455/93 imposing definitive anti-dumping duties on 
imports of monosodium glutamate originating in Indonesia, the Republic of Korea and 
Taiwan and collecting definitively the provisional duties imposed and terminating the 
proceeding with regard to Thailand 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. The Council, by Regulation (EEC) No 1798/90, as amended by Regulation (EEC) 
No 2966/92 and by Regulation (EEC) No 2455/93, imposed definitive anti­
dumping duties on imports of monosodium glutamate originating in Indonesia, the 
Republic of Korea, Taiwan, and Thailand with the exception of imports from 
certain producers in these countries from which the Commission accepted 
undertakings. 
2. In July 1994, the Commission initiated a review of the anti-dumping measures in 
force, following an application lodged by the Community industry. The application 
alleged, inter alia, that the existing price-undertakings had been violated resulting 
in renewed financial losses for the Community industry, thereby aggravating the 
injury suffered. 
3. In the course of the review investigation the Commission found that there were 
reasons to believe that the undertakings were being violated and consequently, by 
Regulation (EC) No 1754/95 of 18 July 1995, replaced the undertakings previously 
accepted from Cheil Foods & Chemicals Inc., Miwon Co. Ltd., Ve Wong 
Corporation, Tung Hai Fermentation Ind. Corp., PT Indomiwon Citra Inti and Thai 
Fermentation Industry Corporation by a provisional anti-dumping duty. 
4. The weighted average dumping margins found ranged from 14.1 to 32.7 for the 
Republic of Korea, from 44.2 to 52.4% for Taiwan and they amounted to 64.7% for 
Indonesia and Thailand. 
5. As far as Indonesia, Korea and Taiwan are concerned, it was found that the dumped 
imports caused injury to the Community industry and that the imposition of 
measures was in the interest of the Community. As far as Thailand is concerned, it 
was found that the impact of exports from this country was negligible and that there 
was no indication of a possible resurgence of dumped imports. The measures 
should therefore be repealed with regard to this country. 
6. The level of the definitive duty was, with the exception of one country, fixed on the 
basis of the injury margins as these were lower than the dumping margins. The 
duties range from 0.136 ECU/kg to 0.334 ECU/kg. 
7. It is therefore proposed that the Council adopts the Regulation annexed amending 
Regulation (EEC) No 2455/93 imposing definitive anti-dumping duties on imports 
of monosodium glutamate originating in Indonesia, the Republic of Korea and 
X 
The level of the definitive duty was, with the exception of one country, fixed on the 
basis of the injury margins as these were lower than the dumping margins. The 
duties range from 0.131 ECU/kg to 0.334 ECU/kg. 
It is therefore proposed that the Council adopts the Regulation annexed amending 
Regulation (EEC) No 2455/93 imposing definitive anti-dumping duties on imports 
of monosodium glutamate originating in Indonesia, the Republic of Korea and 
Taiwan and collecting definitively the provisional duties imposed and terminating 
the proceeding with regard to Thailand (see title of the regulation). 
A. a. 
COUNCIL REGULATION (EC) No 
of 
amending Regulation (EEC) No 2455/93 imposing definitive anti-dumping duties on 
imports of monosodium glutamate originating in Indonesia, the Republic of Korea and 
Taiwan and collecting definitively the provisional duties imposed and terminating the 
proceeding with regard to Thailand 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EC) No 3283/94 of 22 December 1994 on protection 
against dumped imports from countries not members of the European Community^), as last 
amended by Regulation (EC) No 1251/95(2), and in particular Article 23 thereof, 
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(3), as last amended by Regulation (EC) No 522/94(4), and in particular Articles 
12, 14 and 15 thereof, 
Having regard to the proposal from the Commission submitted after consulting the Advisory 
Committee, 
Whereas: 
C1) OJ No L 349, 31.12.1994, p. 1. 
(2) OJ No L 122,02.06.1995, p. 1. 
(3) OJ No L 209,02.0 8.1988, p. 1. 
(4) OJNoL 66, 10.03.1994, p. 10. 
A t 
I. PREVIOUS PROCEDURE 
(1) The Council, by Regulation (EEC) No 1798/90(5), as amended by Regulation (EEC) No 
2966/92(6) and by Regulation (EEC) No 2455/93(7), imposed definitive anti-dumping 
duties on imports of monosodium glutamate originating in Indonesia, the Republic of 
Korea, Taiwan, and Thailand with the exception of imports from certain producers in 
these countries from which the Commission accepted undertakings by Regulation (EEC) 
No 547/90(8), Decision 92/493/EEC(9) and Decision 93/479/EEC(10). 
II. REVIEW INVESTIGATION 
(2) By a notice published in the Official Journal of the European Communities(n), the 
Commission, after consulting the Advisory Committee and in accordance with Article 
14 of Regulation (EEC) No 2423/88 (hereinafter referred to as the Basic Regulation), 
initiated a review of the anti-dumping measures in force, following an application 
lodged by the Community industry. 
The application alleged, in particular, that the normal values established originally had 
generally increased, while the export prices for monosodium glutamate originating in 
most of the countries concerned had significantly decreased during 1993, thus resulting 
in increased dumping when compared to the original findings. It was also alleged that 
the monosodium glutamate originating in the countries concerned had been imported in 
the Community at prices lower than the price levels contained in the existing price-
undertakings and that, therefore, the price undertakings were not suitable measures in 
this proceeding. It was finally alleged that the aforementioned facts have resulted in 
renewed financial losses for the Community industry, thereby aggravating the injury 
suffered. The evidence of changed circumstances contained in the application was 
considered sufficient to justify the opening of a review investigation. 
(5) OJ No L 167, 30.06.1990, p 
(6) OJ No L 299, 15.10.1992, p 
(7) OJ No L 225, 04.09.1993, p 
(8) OJNoL 56, 03.03.1990, p 
(9) OJ No L 299, 15.10.1992, p 
(10) OJ No L 225, 04.09.1993, p 
(n) OJ No C 187, 09.07.1994, p 1. 
1. 
1. 
23. 
40. 
35. 
13. 
(3) The Commission officially advised the complainant Community industry, the exporters 
and the importers known to be concerned and the representatives of the exporting 
countries, and gave the parties directly concerned the opportunity to make their views 
known in writing and to request a hearing. 
(4) The Commission sent questionnaires to parties known to be concerned and received 
replies to its questionnaires from the complainant Community industry, one Indonesian 
producer and its related selling company, two Korean producers, two Taiwanese 
producers, one Thai producer and two importers in the Community. 
(5) One Korean exporter, one Indonesian exporter, one important consumer of monosodium 
glutamate and the Fédération des Associations de l'Industrie des Bouillons et Potages de 
la CEE requested and were granted a hearing. 
(6) The Commission sought and verified all information it deemed necessary for the 
purposes of a determination and carried out investigations at the premises of the 
following companies: 
(a) complainant Community producer. 
OrsanS.A. (France) 
(b) producers/exporters: 
Indonesia: 
PT Indomiwon Citra Inti 
PT Jico Argung (related selling company of PT Indomiwon Citra Inti) 
Republic of Korea: 
Cheil Foods & Chemicals Inc. 
Miwon Co. Ltd. 
Miwon Trading & Shipping Co., Ltd. (related selling company of Miwon 
Co. Ltd.) 
Taiwan: 
Ve Wong Corporation 
Tung Hai Fermentation Ind. Corp. 
Thailand: 
Thai Fermentation Industry Corporation 
(c) importers: 
GMS-Chemie-Handelsgesellschaft mbH (Germany) 
(7) As Thai Fermentation Industry Corporation submitted a deficient response to the 
Commission's questionnaire and refused to co-operate in the verification of the 
information it submitted, in accordance with Article 7(7)(b) of the Basic Regulation, the 
findings had to be based on the facts available. 
(8) The investigation of dumping covered the period from 1 May 1993 to 30 April 1994 
(hereafter the 'investigation period'). 
III. CONTINUATION OF EXISTING MEASURES 
(9) • As the review investigation was still in progress beyond the normal period of expiry of 
the measures, the Commission gave notice(12), in accordance with Article 15(3) of the 
Basic Regulation, that the measures concerning monosodium glutamate originating in 
Indonesia, the Republic of Korea, Taiwan and Thailand would remain in force after the 
end of the relevant five-year period, pending the outcome of the review. 
(l2) OJ No C 164, 30.06.1995, p. 7. 
IV. PROVISIONAL MEASURES 
(10) In the course of the review investigation the Commission found that there were reasons 
to believe that the undertakings referred to in recital (1) were being violated and 
consequently, by Regulation (EC) No 1754/95 of 18 July 1995(13), withdrew its 
acceptance of the undertakings previously accepted from Cheil Foods & Chemicals Inc., 
Miwon Co. Ltd., Ve Wong Corporation, Tung Hai Fermentation Ind. Corp., PT 
Indomiwon Citra Inti and Thai Fermentation Industry Corporation, and imposed instead 
a provisional anti-dumping duty. 
(11) By Regulation (EC) No 2678/95(14), the Council extended the validity of these duties 
for a period of two months. 
V. SUBSEQUENT PROCEDURE 
(12) Following the imposition of the provisional anti-dumping duties, Cheil Foods & 
Chemicals Inc., Miwon Co. Ltd., PT Indomiwon Citra Inti and Tung Hai Fermentation 
Ind. Corp. made their views known in writing. Parties who requested were granted a 
hearing by the Commission. 
(13) The Commission continued to seek and verify all information it deemed necessary for 
its definitive findings. In particular, further investigations were carried out at the 
premises of the following importers: 
DCT Chemie B.V. (Netherlands) 
Henry Lamotte GmbH (Germany) 
Quimidroga S.A. (Spain) 
Scanchem Ltd. (United Kingdom) 
Superfos Chemicals A/S (Denmark) 
Tang Frères (France) 
VOS B.V. (Netherlands) 
(13) OJ No L 170, 20.07.1995, p. 4. 
(14) OJ No L 275, 18.11.1995, p. 22. 
(14) The parties were informed in writing of the essential facts and considerations on the 
basis of which it was intended to recommend the imposition of definitive anti-dumping 
duties and the collection of the amounts secured by way of a provisional duty. The 
parties were also granted a reasonable period within which to make representations 
subsequent to the disclosure. 
The oral and written comments presented by the parties were considered and, where 
appropriate, the Commission's findings were modified to take account of them. 
(15) The investigation exceeded the period of one year mentioned in Article 7(9)(a) of the 
Basic Regulation due to the unusual complexity of this case. As indicated above, 
verifications were carried out at the premises of seven importers, the need to obtain and 
verify additional information only arising at an advanced stage of the investigation. 
VI. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT 
1. Description of the product concerned 
(16) The product covered by the complaint and for which the review investigation was 
initiated is monosodium glutamate produced in the form of crystals of various sizes and 
falling within CN code ex 2922 42 10. It is mainly used as flavour enhancer in soups, 
broths, fish and meat dishes and ready made foods. The product is the same as that in 
the Regulation under review. 
(17) Monosodium glutamate is available in various packing sizes, ranging from consumer 
packs of 0,5 gram to 1000 kilo bulk bags. Smaller packing sizes are sold via retailers to 
private consumers, while the larger sizes of 25 kilo and more are destined for industrial 
users. However, there are no differences in the characteristics of monosodium glutamate 
packed in the various sizes. 
2. Like product 
(18) It was found that the conclusions of the Regulation under review are still valid and that 
monosodium glutamate produced and sold by the Community industry on the 
Community market is a product alike to that produced in and exported from the four 
countries in question to the Community. 
VII. DUMPING 
1. Preliminary remark 
(19) With regard to Thai Fermentation Industry Corporation, it should be noted that this 
company which was the sole producer in Thailand having submitted information, 
although incomplete, in response to the Commission's questionnaire, refused to co­
operate in the verification of this information. In addition, none of the co-operating 
importers was supplied by this company. In these circumstances, it was not possible to 
make an individual finding for this company, and findings concerning Thailand had to 
be based on the facts available as described in recital (33). 
2. Normal value 
a. General 
(20) For all the exporting countries concerned, normal values were established for the 
relevant product types exported to the Community during the investigation period, i.e. 
on the basis of packing sizes of 25 kilo bags. 
b. Indonesia 
(21) For the co-operating Indonesian producer normal value had to be constructed in 
accordance with Article 2(3)(b)(ii) of the Basic Regulation, since almost all of its 
domestic sales were made at a loss during the investigation period. 
(22) The constructed normal value was based on the company's own manufacturing costs 
incurred during the investigation period, in accordance with Article 2(3)(b)(ii) of the 
Basic Regulation. To these costs, an amount corresponding to the company's own 
selling, general and administrative (SG&A) expenses was added. In the absence of any 
information on profits by other Indonesian producers of the like product or in similar 
business sectors, it was considered that the average profit realised during the 
investigation period by all other co-operating exporters on their domestic sales of the 
like product made in the ordinary course of trade would form the most reasonable basis 
on which to determine profit, since the structure of the markets concerned were to a 
large extent similar to that in Indonesia. 
c. Republic of Korea 
(23) For the two Korean producers which replied to the Commission's questionnaire, normal 
value was established, in accordance with Article 2(3)(a) of the Basic Regulation, on the 
basis of the price actually paid in the ordinary course of trade for domestic sales of the 
like product, which were made in sufficient quantities to permit a proper comparison. 
d. Taiwan 
(24) For the two Taiwanese producers which replied to the Commission's questionnaire, 
normal value was established, in accordance with Article 2(3)(a) of the Basic 
Regulation, on the basis of the price actually paid in the ordinary course of trade for 
domestic sales of the like product, which were made in sufficient quantities to permit a 
proper comparison. 
2. Export price 
(25) Export prices reported by all co-operating producers in Indonesia, Korea and Taiwan in 
their replies to the Commission's questionnaire corresponded to the price levels of the 
price undertakings. However, a verification of these export prices confirmed the 
allegation in the review application that the price undertakings had been violated and 
that the export prices reported were unreliable. 
(26) The above conclusion was reached after consideration of the following facts: the 
Commission requested information on resale prices for the product concerned as well as 
information on the costs between importation and resale from all importers having 
purchased monosodium glutamate from those exporters which co-operated in this 
review. 
A number of importers supplied the requested information on resale prices and costs and 
this information was verified at the premises of those importers which agreed to co­
operate further in the investigation. It was found that these latter importers, which had 
sourced the product concerned from the co-operating exporters in Korea, Indonesia and 
Taiwan, had all sold the product concerned on the Community market at a loss during 
the period investigated and, in some cases, the resale price did not even cover the 
purchase price. This was a regular pattern of pricing behaviour, spanning the entire 
investigation period, for which no convincing reason could be advanced other than the 
existence of compensatory arrangements. In addition, clear evidence was found during 
the verification visits to certain importers that the undertakings accepted from Miwon 
Co. Ltd. (Korea) and PT Indomiwon Citra Inti (Indonesia) had been violated, i.e that the 
import prices were not at the level of the price undertakings as demonstrated. In the case 
of the Indonesian company, the violation was evidenced by the issue of credit notes 
relating to sales of the product concerned and, in the case of the Korean company, on the 
existence of correspondence referring to prices substantially below the undertaking 
price. The above facts alone show that the actual export prices for the transactions 
concerned were significantly lower than those reported at the undertaking price level. 
In the above circumstances, which strongly support the existence of compensatory 
arrangements and the unreliability of export prices reported, it was concluded that the 
export prices reported by the co-operating exporters should be reconstructed in 
accordance with Article 2(8)(b) of the Basic Regulation i.e. on the basis of the prices at 
which the imported product was first sold to independent customers, allowance being 
made for all costs incurred between importation and resale and for a reasonable profit 
margin for the importers concerned. 
(27) Accordingly, for the co-operating exporters in Korea, Taiwan and Indonesia, the export 
price was constructed by deducting from the weighted average resale prices of each of 
the co-operating importers to the first independent customer, an amount which 
corresponded to the importers' costs between importation and resale plus an amount for 
profit of 5%. This amount of profit was considered reasonable as it was in line with that 
considered appropriate for the product concerned in previous investigations and was not 
contested. An additional deduction was made for customs duty and other costs, such as 
ocean freight and insurance, to arrive at an ex-works level in the countries of origin. 
(28) For those transactions by the co-operating producers for which information on resales by 
importers could not be obtained, it was concluded that, in the light of the facts revealed 
by the verification of resale prices of MSG exported by those producers carried out at 
the seven importers referred to above, the export prices submitted by exporters had to be 
disregarded for the above same reasons. The export price therefore had to be 
established, in accordance with Article 7(7)(b) of the Basic Regulation, on the basis of 
the facts available, i.e. it was considered that actual export prices in these cases were at 
the same level as the export prices reconstructed as described in recitals (25) to (27). 
3. Comparison 
(29) The weighted average normal value of 25 kilo bags, for each co-operating exporter, was 
compared with the export price established as described in recitals (25) to (28) at the 
same level of trade and on an ex-works basis. For the purpose of a fair comparison, due 
allowance was made for the differences in selling expenses claimed to affect price 
comparability for which satisfactory evidence was submitted. Adjustments were made, 
in particular, in respect of transport, insurance, handling, loading and ancillary costs, 
packing costs, credit and salesmen's salaries. 
4. Dumping margins 
(30) The comparison showed the existence of dumping margins, being equal to the amount 
by which the normal value, as established, exceeded the price for export to the 
Community. 
(31) The weighted average dumping margin for each producer, expressed as a percentage of 
the free-at-Community-frontier price, is as follows: 
Indonesia 
- PT Indomiwon Citra Inti: 64.7% 
Republic of Korea 
- Cheil Foods & Chemicals Inc.: 13.3% 
-Miwon Co. Ltd.: 32.7% 
10 
Taiwan 
- Tung Hai Fermentation Ind. Corp.: 44.2% 
- Ve Wong Corporation: 52.4% 
(32) For those producers in Indonesia, Korea and Taiwan which neither replied to the 
Commission's questionnaire nor otherwise made themselves known, the dumping 
margin was determined on the basis of the facts available in accordance with 
Article 7(7)(b) of the Basic Regulation. In this respect, it was considered, in the light of 
the proportion of the total imports into the Community covered by the co-operating 
producers in each of the three countries concerned, that the findings made with regard to 
these companies provided the most appropriate basis for the determination of the 
dumping margin. 
On this basis it was concluded that it would provide a bonus for non-co-operation, and 
might lead to circumvention of anti-dumping measures, should any of the producers 
concerned be deemed to have dumped at levels lower than the highest dumping margin 
found for any producer in the exporting country concerned which had co-operated. 
It was, therefore, considered appropriate to use, for the non-co-operating producers 
concerned, the highest dumping margin found for a co-operating producer in the 
respective country, i.e. 64.7% for Indonesia, 32.7% for Korea and 52.4% for Taiwan. 
(33) As far as Thailand is concerned, and for the reasons described in recital (19), it was 
considered appropriate, given the absence of any co-operating producer in this country, 
to base the country-wide dumping margin on the highest margin found for any co­
operating producer in one of the other countries, i.e. 64.7%. 
11 
VIIL INJURY 
Preliminary remark 
(34) In accordance with Article 14 of the Basic Regulation, the investigation sought to 
determine the extent of any changes in the circumstances established in the Regulation 
under review with regard to the behaviour of the exporters on the Community market or 
the situation of the Community industry. Since the original five-year period of validity 
of the measures being reviewed would normally have lapsed, the question of the 
likelihood of injury recurring in the absence of measures was also examined. 
The examination of the injury trends covered the period from 1991 to 1993 and the 
investigation period. 
A. Community industry 
(35) The complainant Community producer is the sole producer of the like product in the 
Community and, consequently, represents total Community production of the product 
concerned. Therefore, it constitutes the Community industry in the meaning of Article 
4(5) of the Basic Regulation. 
B. Situation of the Community industry 
(36) As there is only one Community producer of the product concerned and due to the 
confidential nature of the information relating to injury indicators, the figures describing 
the development of production, capacity, capacity utilisation, Community consumption, 
sales volume, market shares, price evolution and profitability are given in the form of 
indices, starting from a base of 100 for 1991 figures. 
Production, capacity and capacity utilisation 
(37) Production by the Community industry of the product concerned decreased in 1992 to 
97.58, but recovered slightly in 1993 to 98.58. During the investigation period, 
Community production achieved 101.08. 
12 
The Community industry's production capacity for the product concerned remained by 
and large stable. The capacity decreased in 1992 to 99.8 and thereafter increased in 1993 
to 101.76 and during the investigation period to 103.72. Between 1991 and the 
investigation period the capacity utilisation rate varied between 100 and 96.88. 
Community consumption 
(38) Community consumption was stable during the period examined. It was, on an indexed 
basis, 100 in 1991 and decreased'to 96.83 in 1992. In 1993, it increased to 101.08 and 
decreased subsequently to 100.25 during the investigation period. 
Sales volume and market share 
(39) The Community industry's sales volume in tonnes dropped from 100 in 1991 to 93.21 in 
1992. In 1993, the quantity sold was 107.36 and during the investigation period it 
decreased slightly to 106.12. 
The market share of the complainant Community producer dropped, also on an indexed 
basis, from 100 in 1991, to 92.43 in 1992, increased to 102.73 in 1993 and fell again 
slightly to 102.28 during the investigation period. It should be noted, however, that its 
market share was at all times very substantial. 
Price evolution 
(40) Although the Community industry's sales prices increased slightly to 101.66 in 1992, 
they fell substantially in the following year to 95.13. The situation improved somewhat 
during the investigation period as the prices recovered to 95.91. 
13 
Profitability 
(41) At the outset, it should be noted that, despite the anti-dumping measures in force, the 
profitability of sales by the Community industry of the product concerned was at no 
time during the period examined at a satisfactory level, although the Community 
industry had achieved a reduction in costs of production. Indeed, the Community 
industry's actual level of profitability was not only far below the level considered by the 
Regulation under review as appropriate, as evidenced by the request for a review of the 
undertakings submitted by Community industry in 1992, but remained so low over an 
extended period of time that the industry's viability was jeopardized. The already low 
level prevailing in 1991 underwent a further sharp decrease in 1992. The downward 
trend continued in 1993, when the Community industry came very close to a loss-
making situation. The investigation period saw some improvement of profitability 
which did not, however, reach the level of 1991. When considering profitability, it 
should also be borne in mind that, as mentioned above, its decline would have been 
even more significant had the Community producer not achieved a reduction in costs of 
production. 
Conclusion 
(42) The examination of the above-mentioned indicators shows that, notwithstanding certain 
positive effects of the anti-dumping measures currently in force, the financial situation 
of the Community industry remains precarious. While material injury was established by 
the Regulation subject to review for the period from January 1989 to September 1992, 
the examination of the facts established in the current review demonstrates that material 
injury has persisted in the subsequent period. This is shown in particular by the further 
decrease inof prices and the persistent extremely low level of profitability. 
14 
B. Behaviour of the exporters concerned 
Volume of imports 
(43) The volume of imports from the four countries concerned increased from 11228 tonnes 
in 1991 to 12871 tonnes in 1992, but decreased thereafter to 7921 tonnes in 1993 and 
7478 tonnes in the investigation period. With the exception of Thailand, the imports of 
the product concerned broken down by the four countries involved, follow, by and large 
a similar pattern to the development of total imports of monosodium glutamate from 
Indonesia, Korea, Taiwan and Thailand. They represented the following market shares: 
1991 1992 1993 Investigation 
period 
Indonesia 2.99% 3.55% 3.21% 2.34% 
Korea 9.94% 12.34% 6.78% 7.39% 
Taiwan 7.56% 8.55% 4.61% 4.24% 
Thailand 0.70% 0.64% 0.18% 0.10%' 
This represents a development of the total market share of the imports concerned from 
21.18% in 1991 to 25.07% in 1992 with a subsequent decrease to 14.78% in 1993 and 
14.07% in the investigation period. 
Prices of the dumped imports 
(44) It was investigated whether the exporting producers had undercut the prices of the 
Community industry during the investigation period. A comparison was therefore made 
on the basis of the constructed weighted average export price (CIF Community frontier, 
duty paid) as established in recitals (25) to (28) and the Community industry's weighted 
average ex-works selling price for monosodium glutamate sold in the Community. 
15 
The level of undercutting of the Community industry's prices was found to range 
between 20 and 22% for imports originating in Taiwan, between 9 and 11% for imports 
originating in the Republic of Korea and 26% for imports originating in Indonesia. With 
regard to the Thai exporter, it was not considered possible to calculate undercutting 
given the fact that, as set out in recital (19), they did npt co-operate in the investigation. 
In view of the conclusion reached on the existence of compensatory arrangements, 
entered into by the co-operating exporters (see recital (26)), EUROSTAT figures 
concerning imports from Thailand could also not be considered as a reliable source. 
Conclusion 
(45) Although the market penetration of imports from the countries concerned has decreased 
considerably, their market share has remained substantial, and a clear pattern of price 
undercutting has emerged. 
C. Cause of injury 
1. Cumulation 
(46) As far as imports from Thailand are concerned, it was concluded that these imports, 
whose market share decreased to 0.1 % in the investigation period, should not be 
analysed cumulatively with imports of the other countries concerned with a view to 
determining their effect on the situation of the Community industry as such a low import 
volume could not have any serious impact on the latter. 
As in the original investigation and the reviews carried out prior to this review, it was 
found that the effects of the imports from Korea, Taiwan, and Indonesia have to be 
analysed cumulatively, since the imports of the product under consideration originating 
in each of these countries are alike in all respects, interchangeable and followed the 
same pricing behaviour. These imports competed with the like product manufactured by 
the Community industry and with each other. 
16 
2. Effect of the dumped imports from the countries concerned 
(47) In determining whether any changes had occurred in the causal link established by the 
Regulation and the Commission decision subject to review between the dumped imports 
and the material injury, the further developments since these earlier findings were 
examined. While some of the Community industry's indicators improved, its 
performance remained poor in particular regarding its price level, which fell after the 
imposition of the measures, and its continuing low profitability. The latter can clearly be 
linked to the pricing behaviour of the exporters as established in recitals (25) to (28) 
which through price undercutting in a price sensitive market managed to maintain their 
pressure on the prices of the Community industry. 
(48) Taking this into consideration as well as the fact, as was outlined above, that the volume 
of imports from the three countries concerned remained at a substantial level, there 
cannot be any reasonable doubt that these imports have been a decisive factor on the 
Community industry's continuing poor financial situation. 
In conclusion, although certain improvements occurred in the Community industry, it is 
still experiencing overall material injury as a result of the behaviour of the Indonesian, 
Korean and Taiwanese exporters which, through price undercutting, could not fail to 
affect severely an industry in the process of recovering from dumping. 
3. Effect of other factors 
(49) The impact on the situation of the Community industry of factors other than the dumped 
imports concerned was also examined. 
17 
Imports from Brazil 
(50) It was alleged that the Community producer imported substantial quantities of the 
product concerned from Brazil at prices with which exporters from the four countries in 
question were prevented from competing. It was found that the Community producer 
imported monosodium glutamate from Brazil during the investigation period in order to 
meet a sudden surge in demand and to counteract the effects of industrial action. The 
Community producer's imports only however represented a small proportion of its 
output. Consequently, the purpose of these imports by the Community producer was to 
defend its competitive position in the Community and to maintain its market share. 
Moreover, contrary to the above allegation, these products were imported and resold at a 
price level which was comparable with the Community producer's own production costs 
and selling prices respectively. 
(51) Some interested parties claimed that imports of monosodium glutamate from Brazil 
were the reason for the difficult situation of the Community industry. 
It was found that, while imports originating in Brazil increased substantially over the 
period examined (from 1076 tonnes in 1991 to 4376 tonnes during the investigation 
period), the price levels of these imports, on the basis of information from EUROSTAT, 
increased slightly. Even if it were to be concluded that imports from Brazil had 
contributed to the injury suffered by the Community industry, this would not alter the 
fact that the injury caused by the dumped imports concerned, taken in isolation, is 
material. 
18 
Imports from the United States of America 
(52) One party claimed that imports of monosodium glutamate from the United States of 
America might be responsible for the difficult situation of the Community industry. 
It was found, however, that imports from the United States of America during the period 
examined remained at negligible levels (23 tonnes in 1991 and 27 tonnes in 1993 and, in 
terms of market shares, 0.04% in 1991 and 0.05% in 1993) and were sold at prices well 
above those of the dumped imports. It was, in addition, claimed by the complainant that 
imports originating in the United States of America surged in July and August 1994. 
This development, however, took place after the investigation period and, therefore, 
could not be taken into consideration, in conformity with the Community institutions' 
consistent practice, for the purpose of the present injury determination. Indeed, the final 
determination of the facts in an investigation always refers to the investigation period. 
Developments, which occurred after the end of this period, can not be taken into 
consideration since any other method would render the investigation virtually 
permanent, so that operators concerned could manipulate the results by short-lived 
changes of the pricing policy. Finally, neither the Basic Regulation nor the Agreement 
on Implementation of Article VI of GATT 1994 warrant another method. 
Therefore, imports from the United States of America could not have had any 
significant negative impact on the situation of the Community industry during the period 
considered which ended in April 1994. 
Other imports 
(53) The effects of imports other than those from Brazil, the USA and the four countries 
concerned on the Community industry were also examined on the basis of the figures 
reported by EUROSTAT. These imports, made mainly from Switzerland, Austria, 
China, Japan and Hong Kong, were, with the exception of Hong Kong, usually at 
significantly higher prices than those from the four countries concerned. The quantities 
imported from Hong Kong were, in any event, very low. In this context, it is interesting 
to note that neither Switzerland, Austria nor Hong Kong had any production facilities 
for monosodium glutamate. 
19 
In these circumstances, it can be ruled out that these other imports have had any 
significant adverse impact on the situation of the Community industry. 
Mismanagement of the Community industry 
(54) One importer and the Fédération des Associations de l'Industrie des Bouillons et Potages 
de la CEE alleged that the Community industry used outdated technology in order to 
produce the product concerned. It was also alleged that the injury sustained by the 
Community industry was due, at least in part, to the Community industry's own deficient 
management and know-how. 
However, these allegations were not substantiated and, therefore, had to be rejected. 
They were also contradicted by the Commission's own findings on the productivity and 
efficiency of the Community industry, as shown by its successful rationalization efforts. 
4. Conclusion 
(55) In these circumstances, it was concluded that, even if it was accepted that the factors 
mentioned above had an adverse effect on the situation of the Community industry, the 
dumped imports from Indonesia, Korea, and Taiwan had, taken in isolation, continued 
to cause material injury to the Community industry. 
D. Recurrence of injury 
(56) In the light of the above analysis and in order to assess the effect of expiry of the 
measures in force, the following was considered: 
(57) - As far as Thailand is concerned, as stated in recital (46), the impact of exports from 
this country is negligible and there is no indication of a possible resurgence of 
dumped imports. The measures should therefore be repealed. 
20 
- Monosodium glutamate is a commodity and price is the key factor in customer 
choice, all customers being industrial users. Sales at low prices have therefore 
inevitable substitution effects as certain customers choose to be supplied at the 
lowest price offered, 
- Undercutting margins of up to 26% have been established. These injurious prices 
would most likely persist in the future and would continue to prevent the Community 
industry recovering from injury, the situation of which would be further aggravated 
should the anti-dumping measures currently in force not be continued, 
- Further evidence of the need for the Community industry to continue to be protected 
against injurious dumping is the behaviour of the exporters which led to the 
withdrawal of the undertakings by the Commission. Export prices reported by the 
exporters had to be considered as unreliable because of low resale prices on the 
Community market which can only be explained by the existence of compensatory 
arrangements. The likelihood of injurious dumping recurring is also confirmed by 
information received by the Commission concerning exports of monosodium 
glutamate originating in the four countries concerned which were made to the three 
new Member States before their Accession. These exports were found to have been 
made at prices substantially lower than the price level in the Community, 
demonstrating the propensity for dumping by the countries concerned. 
(58) Under these circumstances it is concluded that the injury already suffered by the 
Community industry and caused by dumped imports from Korea, Taiwan, and Indonesia 
could only worsen if measures were allowed to lapse. 
IX. COMMUNITY INTEREST 
(59) The Council, in Regulation (EEC) No 2455/93, concluded that it was in the Community 
interest that measures be imposed on imports of monosodium glutamate from the four 
countries concerned. It was found that the conclusion on Community interest as set out 
in the Regulation subject to review should remain unchanged since in the subsequent 
period the development of the facts underlying this conclusion have only strengthened 
the case for maintaining the measures. 
21 
(60) It should be noted that monosodium glutamate production is subject to strict 
environmental standards, continuing compliance with which may require substantial 
investment. The ability of the Community industry to undertake any necessary 
investment would be endangered if its poor financial situation resulting from injurious 
dumping were not remedied and effective competition not restored through the 
maintenance of anti-dumping measures, amended to reflect the latest findings. 
(61) One interested party argued that to maintain the anti-dumping measures at their current 
level would allow the Community industry to reinforce its strong position on the 
Community market to the detriment of users of monosodium glutamate. In this respect, 
it should be noted that, notwithstanding the significant share of the Community market 
held by the Community industry, there is sufficient competition in that market as 
demonstrated by the presence of imports from seven other countries during the 
investigation period, equal in volume to those from the countries concerned. As far as 
the impact of anti-dumping measures on the situation of the Community users of 
monosodium was concerned, it was acknowledged that any increase of the price of 
inputs was of importance to them. However, although the industry using monosodium 
glutamate refused to indicate the percentage of its total costs attributable to monosodium 
glutamate, it did not deny that, as revealed by the investigation, the price of 
monosodium glutamate has only a minor effect on the costs of the products in which it 
was used. 
(62) In the light of the above, it is considered to be in the interest of the Community that the 
anti-dumping measures remain in force, duly amended, in order to give the Community 
industry the necessary opportunity to continue to redress its precarious financial 
situation. 
22 
X. AMENDMENT OF THE MEASURES IN FORCE 
1. Co-operating exporters 
(63) The co-operating exporters, on being informed of the findings of the investigation, 
offered new minimum price undertakings in respect of exports to the Community of the 
product concerned. However, for the reasons described in recitals (25) to (28) above, it 
was considered that undertakings were not an appropriate measure for removing the 
injury being suffered by the Community industry. Indeed, the undertakings previously 
accepted had to be withdrawn owing to violation and no appropriate guarantees were 
given by the exporters regarding price levels or compliance that could justify the 
acceptance of such undertakings. Accordingly, the undertakings offered were, after 
consultation, not accepted by the Commission. 
(64) For the purpose of establishing the level of the duty to be imposed, account was taken of 
the dumping margins found and of the amount of duty necessary to eliminate the 
remaining injury sustained by the Community industry. 
Since the remaining injury consisted mainly of price depression and continuing 
abnormal low profitability, the removal of such injury required that the industry be put 
in a position in which its prices could be increased to a profitable level. In order to 
achieve this, export prices should be increased accordingly. For calculating the 
necessary price increase, it was considered that prices of the dumped imports had to be 
compared with the cost of production of the Community industry plus a margin of profit 
sufficient to ensure the viability of that industry. 
On this basis, the weighted average export prices were compared, for the investigation 
period, on a free-at-Community-frontier level increased by customs duties, where 
appropriate, with the cost of production of the Community producer concerned, plus a 
margin of profit. This profit level used, which cannot be stated for reasons of 
confidentiality and which did not reach the level of profits made by that producer prior 
to the impact of the imports concerned, is considered to be obtainable in the absence of 
dumped imports and is in line with that considered reasonable by the Commission in the 
original investigation. 
23 
These comparisons showed injury margins which, expressed on a weighted average 
basis as a percentage of the free-at-Community-frontier price, ranged from 25.4% to 
35.7%. 
(65) For one exporter, the margin of dumping found was below the corresponding increase in 
export prices necessary to remove the injury as calculated above. The duty to be 
imposed for this company should, therefore, correspond to the dumping margin 
established. For the other co-operating exporters, as the margins of dumping found were 
above the corresponding increases in export prices necessary to remove the injury, as 
calculated above, the duties to be imposed for these companies should, therefore, 
correspond to the injury margins established. 
(66) Given the potential for absorption of the effect of an ad valorem anti-dumping duty and 
given the violation of the undertakings, as established, a duty should be imposed in the 
form of a specific duty, i.e. a fixed amount of ECUs per kilo. 
2. Other producers in the exporting countries concerned 
(67) The co-operating exporters accounted for a very high proportion of total exports of the 
product concerned to the Community. In establishing the level of duty for producers in 
the countries concerned which neither replied to the Commission's questionnaire nor 
otherwise made themselves known, it was, therefore, considered appropriate to establish 
the level of duty applicable to such producers at the highest amount of duty found for an 
exporter in each country. 
(68) 3. Conclusion 
The Regulation subject to review should therefore be amended in accordance with the 
above findings. 
XII. COLLECTION OF THE PROVISIONAL DUTY 
(69) In view of the dumping margins established, the violation of the undertakings and of the 
seriousness of the injury caused to the Community industry, it is considered necessaiy 
that the amounts secured by way of the provisional anti-dumping duty be definitively 
collected, with the exception of those collected for imports from Thailand for the 
reasons set out in recital 57, 
24 
HAS ADOPTED THIS REGULATION: 
Article I 
Article 1 of Council Regulation (EEC) No 2455/93 is hereby replaced by the following: 
"Article I 
'1. Definitive anti-dumping duties are hereby imposed on imports of monosodium glutamate, 
falling within CN code 2922 42 10, originating in Indonesia, the Republic of Korea and 
Taiwan. 
2. The rates of duty applicable to the net free-at-Community-frontier price, before duty, shall 
be as follows: 
Amount of duty Taric 
Country Products manufactured by (ECU per kilogram) additional code 
Indonesia All companies 0.334 
Republic of Korea Cheil Food & Chemicals Ltd 0.129 88 43 
All other companies 0.286 88 76 
Taiwan All companies 0.289 
3. Unless otherwise specified, the provisions in force concerning customs duties shall apply.' 
Article 2 
The amounts secured by way of provisional anti-dumping duties pursuant to Commission 
Regulation (EC) No 1754/95 shall be definitively collected in full. The amount secured by 
way of provisional duty on imports from Thailand shall be released. 
25 
Article 3 
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 Brussels, 1995 For the Council 
26 

ISSN 0254-1475 
COM(96) 1 final 
DOCUMENTS 
EN 02 11 
Catalogue number : CB-CO-96-Q01-EN-C 
ISBN 92-77-99420-7 
OfiSce for Official Publications of the European Communities 
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