ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)207
Vol.1981/0076

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)207 final
Brussels,21April1981
Proposalfora
COUNCILREGULATION (EEC)
imposingadefinitiveanti-dumping dutyonvinylacetatemonomerorigi­
natingintheUnitedStatesofAmerica
(submittedtotheCouncilbytheCommission)
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C0M(81)207final

EXPLANATORY MEMORANDUM
On'20November1980,byRegulation 2999/80(1),theCommission imposed
aprovisional anti-dumping duty,laterextendedbyCounciI_Regulation
683/81(2),onexportsofvinylacetatemonomeroriginating in.theUnited
StatesofAmerica.ThisdutywasbasedonthefindingsmadeatUSIndustrial
Chemicals CowhichwasatthetimetheonlyUSproducerfound tobedumping
andwhichco-operated withtheCommission'sinvestigation .
Thiscompanyofferedanundertaking whichwasacceptedbytheCommission.
Twoothercompanies (Ce'laneseChemicalCompany,Inc.aridInternational
PetroleumSalesCo,Inc.)whichwere'foundnottobedumpingwereexcluded
fromtheapplicationofthisduty. '/'/•' 1
Subsequenttotheimpositionoftheprovisional duty,oneoftheUSexporter ~
(GantradeCorporation )declaredhavingan.interestintheproceeding.
TheCommunityproducersclaimedthat,evengreaterpricedepressionoccurred
inthesecondhalfof1980,.thattheirmarketsharesdecreasedeven,furtherand
thataccountshouldbetakenofthedifferences inquantitiessoldboth,on-theUS'
andontheEECmarket.1"> ■;.-.
Thefactsasfinallyestablishedforthefinalinvestigation period(.thesecond
halfof1980)' .showthat,theexportsmadebyUnionCarbideCorporation,C'ebanese.
ChemicalCompanyInc.,GantradeCorporation andPhillipsPetroleumCompanywere
soldatdumpedpricesatmargins 1_of14,02%%,12,92%%,2,63%and
14,27%respectively .Forotherexporters,eitherunknownoruncooperative
v.itwasnotpossibletoestablish "thatthedumpingmarginwaslessthan14,27%..
WithrespecttotheinjurycausedtotheEECindustry,itwasfoundthatimports
increasedbyapprbximatively101%whencomparing1980with1979,thattherewas
anincreaseinthemarketshareofdumped.-importsfromtheUSfrom0%in■
1979to22,7%. ;t ,iforthewholeof1980andthatthis'
increaseinimportswasaccompanied byasimultaneous sharp,decreaseinthe
alreadydepressedvinylacetatemonomerpricesintheEEC,especiallyduringthe
secondhalfof1980. -. .//
inotbe–excludedthatotherUSexporterswillcomeforwardtoofferpriceun­
dertakingspriortoadoptionoftheRegulation .bytheCouncil.Onthebasis.
:ofthesefacts,theCommissionthereforesubmitstotheCouncilitsproposal ,
foraCounciLregulation,imposingadefinitiveantr-'dumpingdutyof'14,27%'
onvinylacetatemonomeroriginating intheUnitedStatesof.America,
(1)0Jn°L311,21.11.1980,p.3
(2)0Jn°L73,.19.3.1981,p.3

frr C«:''oiin>'„•Ss^v'"■feeCorp&ratio-3.-0ymon
CarbideColoration forwhichtheratesshallbe12,92%,
2,63%and14,02%respectively ,andexcluding USIndustrial Chemical
Co.fromtheapplication oftheduty.Itisfurtherproposedthatthe
amountssecuredwayofprovisional dutyshouldbecollecteddefinitively .
i

Proposalfora
L39/4
12-2.81COUNCILREGULATION (ESC)
' •.■<.
imposingadefinitiveanti-dumping dutyonV1nytacetatemonomerprig
nafingintheUnitedStatesofAmerica s•■
THECOUNCILOFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilRegulation (EEC)No
3017/79of20December1979onprotectionagainst
dumpedorsubsidizedimportsfromcountriesnot
membersoftheEuropeanEconomicCommunity('),
andinparticularArticle12thereof.
Havingregardtotherproposalsubmittedbythe
Commission afterconsultationwithilheAdvisory
CommitteesetupunderArticle6ofRegulation(EEC)
No3017/79,.
WhereasinJune1980theCommissionreceiveda;
complaintlodgedbytheEuropeanCouncilof
,',ChemicalManufacturers' Federations (CEFIC)on.
.-hebatfofmanufacturers .account.r,gforall-ofthe,
L311/13Communityproductionofvinyl.acetatemonomer;'
21.11,80whereasthecomplaintcontainedevidenceoftheexist­
enceofdumpinginrespectofthelikeproduct •
originatingintheUnitedStates'ofAmerica,andof
fi.itcrialinjuryresultingtherefrom ; i
•Whereas"thesaidinformationprovidedsufficient ;
evidencetojustifyinitiatinga'proceeding.;whereas
theCommissionaccordinglyannounced,byanotice
publishedintheOfficialJournalofthr.European '
Communities {2),theinitiationofaproceeding
concerningimport^ofvinylacetatemonomerorigin-?
itingintheUnitedStatesofAmerica,and
commencedaninvestigationofthematteratCommu-.
nitylevel;
■Whereas,forthepreliminary .investiga'CI00/
theCommissioncomparedexportpricesto
theCommunitywithdomesticpricesontheUS
market;whereas,forthesecomparisonsrepresentative
orweighted'averageex-tactorypriceswereusedfor
1979andthefirstsixmonthsof1980,andaccoun*;
wastaktn,whereappropriate,ofdifferencesaffcctin
pricecomparability ,suchasdifferencesinquantities,
differencesinconditionsandtermsofsaleanddiffer­
encesintheleveloftrade;whereastheCoiiinr!sr
(1)0JNoC339,31.12.1979,p„1
(2)0JNoC.169,9.7.1980,p.2

_,_
established cnthisoasisthatvirtually nodumpingoccurredin1979
butthatforthefirstsixmonthsof1930exportsoftheproductinquestion
weredumpedataweightedaveragemarginof10,6%;whereastherewassufficient
evidenceofinjuryresultingfromtheirentryforconsumption intotheCommunity
andsincetheinterestsoftheCommunity/calledforimmediateintervention inordertopreventfurtherinjurybeing
causedduringtheproceeding,theCommission,byRegulation (EEC)No2999/80(3),
imposedaprovisional antidumping dutyonvinylacetatemonomeroriginating
intheUnitedStatesofAmerica;whereasexportsbythreecompanies were
excludedfromtheapplication ofthisdutybecausenodumpingwasfoundwith
respecttotwoofthemandbecauseanacceptable undertaking toincrease
exportpriceswasofferedbythethirdcompany;
Whereastheperiodofvalidityofthisprovisional dutywasextendedfora
periodnotexceeding twomonthsbyCouncilRegulation (EEC)No683/81(4);
whereas,inthecourseofthesubsequentexamination
ofthematter,completedaftertheimpositionofthe
provisionalanti-dumping duty,theinterestedparties
hadtheopportunity tomakeknowntheirviewsin
writing,tobeheardbytheCommission andto
developtheirviewsorally,to'nspectnon-confidential
information relevanttothedefenceoftheirinterests
andtobeinformedoftheessentialfactsandconsidera­
tionsonthebasisofwhichitwasintendedtomakea
finaldetermination ;whereasthecomplainants and
mostoftheexportersandimportersconcernedavailed
themselvesofthesepossibilitiesbymakingknown
theirviewsinwritingandorally;
Whereasonefurtherexporter,GantradeCorporation (NewJersey),cameforward
andofferedtoprovideinformation onnormalvalueandexportprices;whereas
theCommission afteracarefulanalysisoftheinformation available
decidedtocarryoutinspections atthepremisesofUnionCarbideCorporation
(Connectitut ),CelaneseChemicalCompany,Inc.(Texas)andGantradeCorporation
(NewJersey)^WhereasPhillipsPetroleumCompany(Oklahoma)didnotconsider
anon-spotinvestigation tobenecessarybecauseitdidnotwishtoclaim
anyallowancewithrespecttoitsnormalvalue;
(3)0JNoL311,21.11.80,p.13
(4)0JNoL73,19.3,1981,p.3

Whereas,inseekingto'determinetheexistenceofdumpingthe
Commission comparedtheexportpricestotheCommunitywiththe
normalvalue; -
Whereas,sinceallcompaniesconcernedsoldvinylacetatemonomeronth
USdomesticmarket,normalvaluewasestablished onthebasisoftheir
respectivepricesontheAmericanmarketduringthelastsixmonths
of1980,themostrecentperiodforwhichfullinformation couldbe
verifiedandwhichseemedtoberepresentative giventheworsening -
ofthesituationduringthesecondhalfof1980;whereasforthosecom­
panieswhichnegotiatepricesonaquarterlybasiscertainmonthswere
selected,verifiedandagreedwiththecompaniesconcernedtobe
representative forthissixmonthsperiod;
,. whereas,afterdiscussion
andinagreementwiththecompaniesconcerned,salestoacertain
numberofcustomerswereconsideredtoberepresentative forthe"
purposeofcalculatingthenormalvalue; '
~ %
however . .'' :■
Whereas/certainsaleswereexcludedfromthisv;calculation
astheywerenotconsideredtohavebeenmadeint;heordinarycourse
oftradeordidnotpermitapropercomparison,eitherbecausethey
involvedspecialprocessing arrangements orbecausethevolumes
involvedwerenotonacomparablebasis;

Whereasexportpricesweredeterminedforthesameperiodonthe
basisofpricesactuallypaidorpayablefortheproductconcerned
soldforexporttotheCommunity;
Whereasthecomparisons weremadeonamonthbymonth,transactionby
transaction,ex-factoryor,where.applicable,FOBbasisforallof
thecompaniesvisited;
WhereastheCommission alsotookaccountofbonafidedifferences
affectingpricecomparability withrespecttovariabledistribution
andsellingcostsandofpaymentconditions^where appropriate and
whereclaimsintheseareascouldbesatisfactorily demonstrated ; *
Whereassubsequenttooralrepresentations certaincompaniessubmitted
detailedinformation withrespecttoafewminorcostitemswhich
wassaidtodifferonlymarginallyfrominformationpreviously
submittedbythem;'whereasthis,
vinformation hasnotbeentakenintoconsideration because
theCommission'sserviceswereno.longerinapositiontoverifyit;
ofdumping
Whereasthe-examination/showedthatexportsmadeduringtheinvestigation
UnionCarbideCorporation,12,92%forCelar.eseChemicalCompany,Inc.,
2.63%forGantradeCorporation,and14.27%forPhillipsPetroleum
Company;lltrili,WlIClCCJDLU
■ i', weightedaverage ,,..,periodweredumped;whereasthe/dumpingmarginsfoundwere14,02%for

WhereasforbrokersandexporterseitherunknowntotheCommissionor
whodecidednottocooperateitwasnotpossibletoestablishthat
thedumpingmarginwaslessthan .14/27%;
Whereas,asregardstheinjurycausedbythedumpedimportstothe
Community,theconsiderations whichledtotheimpositionoftheprovisional
dutyremainvalid;
Whereasfurtherinformation receivedbytheCommissionaftertheimposition
oftheprovisional dutyshowedthatimportsintotheEECoftheproduct
inquestionoriginating intheUnitedStatesofAmericaincreasedfrom
33,894tonnesinthewholeof1979to40665tonnesinthefirsthalfof
1980andto55,415tonnesinthefirstthree-quarters of.1980,estimated
tobeanincreaseofapproximately 101%onanannualbasis;
Whereastheshareofthefree,i.e.non-captive,vinylacetatemarket >
heldbyUSimportsamountedto9.8%in1977,to16%in1979and
increasedtoapproximately 32.3%in1980;whereasthetotal'marketshareof
dumpedimportsincreasedfVom/^?.&%inthefirstsixmonthsof1980,to
23.9%forth^secondhalfof1980or22.7'%forthewholeyear;
Whereasthisincreaseindumpedimportswasaccompanied byasimultaneous
sharpdecreaseinthealreadydepressedvinylacetatemonomerprices
intheEEC,especiallyduringthesecondhalfof1980;

Whereastheconsequent impactof.theincreasedimportsandLowerprices
accentuated the.,pricedepressionandLedto/furtherreduction
ofmarketsharesheldbytheEECproducers from89.5%in1977to
83.1%in1979,toapproximately 65.8%in1980;whereas ,someCommunity
producers havesharplyreducedtheir,production LevelsasaresuLt;whereas
othershavetriedtomaintainremainingmarketsharesbyseLLingat
everLowerprices;
WhereasallCommunityproducersarestillforcedtoseLLatpriceswhich
arenotsufficient torecovertheincreased costsandareunableto
remedythissituation bymeansofusingmoreproductcaptiveLy;whereas
asaresult,allproducersareincurring Losses,someofwhichare
■extremelyhigh; ', -'
WhereastheCommission hasconsidered theinjurycausedbyotherfactors
which,individually orincombination,areaLsoaffectingtheCommunity 1
industry;whereasithasdeterminedinthiscontextthattheleveLof
'demandandconsumption intheCommunityisstillreLativeLy stabLein
spiteofcertainmarketfluctuations ;whereas,moreover,thevolume,
ofnon-dumped importswasreLativeLy ,smallcomparedtototalimports,
andrepresented Lessthan13.1%thereof intheLasthaLfof1980or29.6%
.forthewholeyear;whereastheinfLuenceofthesenon-dumped
imports'onthevinyLacetatemonomermarkethasbeenisolatedfromthe
.dumpedimports;whereasthesubstantial andsuddenincreaseofimports ",
ofdumpedvinylacetatemonomersinceT977andthepricesatwhichthey
wereofferedfor',sale,intheCommunity LedtheCommissiontodetermine
thattheUSexportsofdumpedvinyLacetatemonomerconsideredinisolation
♦
havecausedmaterialinjurytotheCommunityindustryconcerned;
v
Whereas,inthesecircumstances ,protectionoftheCommunity sinterests .*■
callsfortheimpositionofadefinitive anti-dumping dutyonvinylacetate
'monomeroriginating intheUnitedStatesofAmericawhich,havingregard
totheextentofinjurycaused,shouldbeequaltothedumpingmargins-
found,.andforthedefinitivecollectionoftheamountssecuredbyway
ofprovisional dutyinrespectoftheproductconcernedattherateofthe
provisional duty; ' ''~

_7_
regL-
ci2999Whereaspriortoimpositionoftheprovisional dutytheCommission
acceptedtheundertakingofferedbyUS.IndustrialChemicals Co.;
1 *V
whereasitisconsequently appropriatetocontinuetoexcludethe
importsoftheproductsmanufactured andexportedbythiscompany
fromtheapplication oftheduty; .'
\ ι 'λ
HASADOPTEDTHISREGULATION :
Article 1
1.Adefinitiveanti-dumping dutyisherebyimposedonvinylacetate
I.
monomerfallingwithinCommonCustomsTariffsubheading ex29.14AIIc)1
andcorresponding toNIMEXEcode29.14-32/originating intheUnited
StatesofAmerica. ..*

2.Therateofthedutyshallbe14,27xonthebasisofthecustomsvalue
determined inaccordance withCouncilRegulation (EEC)no1224/80of
28May1980onthevaluationofgoodsforcustomspurposes (1)
3.Notwithstanding paragraph 2above,
VforCelaneseChemicalCompanytherateshallbe.;
12,92%forGantradeCorporationtherateshallbe2.63%;andfor
UnionCarbideCorporation therateshallbe14,02%.
4.Theprovisions inforcefortheapplication ofcustomsdutiesshall
applytothisduty.
Article2
Thedefinitiveanti-dumping dutyimposedbyArticle 1shallnotapplyto
vinylacetatemonomerexportedbyUSIndustrial Chemical Co.
(1)0JnoL134,31.5.1980,p.1

9
Article 3
Theamountssecuredbywayofprovisional dutypursuanttoRegulation
(EEC)No2999/80shallbedefinitively collected,-
Article 4
ThisRegulationshall .enterintoforceonthedayofitspublication
intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindingin-itsentiretyanddirectly
applicableinallMemberStates.-
DoneatBrussels, 1981 FortheCouncil
ThePresident