ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)291
Vol.1982/0109

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COMMISSION OF/THEEUROPEAN COMMUNITIES
COM(82)291 final.
Brussels,18May1982
Proposalfora
COUNCILDECISION
terminating theanti-dumping proceeding concerning importsofcertain
Ν
refrigerators originating inCzechoslovakia ,theGermanDemocratic
Republic,Hungary,Poland,Romania,theSovietUnionandYugoslavia
IV"
(submittedtotheCouncilbytheCommission ^,
,r>-.
C0MC82)291final.

2-2-1
EXPLANATORY MEMORANDUM
1.InMarch1981theCommissioninitiated ananti-dumping proceeding
againstimportsofcerta/inrefrigerators fromCzechoslovakia ,theGerman
1Democratic RepubIic>(-Hungary,Poland,Romania,theUSSRandYugoslavia .
2.TheCommission'sinvestigation hasestablished theexistenceofdumping
marginsduringtheyearended30June1981rangingfrom7%to74%
(depending onthetypeandsizeofrefrigerator andtheexportingcountry).
Indetermining thesedumpingmargins,theCommission tookasnormalvalue
theweightedaverageex-fac,tory pricesontheYugoslavdomesticmarket,
adjustedasdeemedappropriate fordifferences inphysicalcharacteristics .
3.TheCommission'sinvestigation alsoshowsthatimportsofthesedumped
refrigerators ,throughtheincreaseintheirshareofthemarketandthrough
theirundercutting ofCommunityproducer'sprices,havecausedmaterial
injurytothoseCommunityproducers engagedinthissectorofthemarket,
whosemarketshare,levelofproduction andprofitability havesuffered
significant reverses.
4.Theexportersinallthecountries concerned havevoluntarily undertaken
toraisetheirpricestolevelswhichtheCommission considersadequate
toeliminatethemarginsofdumpingortheinjuriouseffectsthereof.
5.However,whentheAdvisoryCommittee wasconsulted ontheacceptance
oftheseundertakings ,opinionsweredividedastowhetherprotective
measureswerecalledfor.TheCommission hasconsequently decidedtoput
theissuebeforetheCouncilbysubmitting,inaccordancewithArticle9(1)
and10(1)ofRegulation(EEC)N°3017/792,theattachedproposalforthe
termination oftheproceedings onthebasisoftheacceptanceofthe
undertakings offered.
0JN°C162,02.07.1981,p.3
20JN°L339,31.12.1979,p'.1

PROPOSAL FORA
COUNCIL DECISION
terminating ^theanti-dumping proceeding
concerning importsofcertainrefrigerators originating inCzechoslovakia ,
theGermanDemocratic Republic,Hungary,Poland,Romania,theSovietUnion
andYugoslavia
THECOUNCIL OFTHJE'EUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)No3017/79of20December1979on
protection againstdumpedorsubsidized importsfromcountriesnotmembers
oftheEuropeanEconomicCommunity,andinparticularArticle10thereof.
Havingregardtotheproposalsubmitted bytheCommissionafterconsultations
withintheAdvisoryCommitteesetupunderthatRegulation,
WhereasinMarch1981theCommission received acomplaintlodgedby
ConseilEuropeendelaConstruction Electrodomestique (CECED)onbehalfof
thegreatmajori^/'ofCommunitymanufacturersofcertainrefrigerators;
whereasthecomplaintcontainedevidenceoftheexistenceofdumpingin
respectoflikeproductsoriginating inCzechoslovakia ,theGerman
Democratic Republic,Hungary,Poland,Romania,theSovietUnionandYugoslavia
andofmaterialinjuryresultingtherefrom;
Whereasthesaidevidencewassufficient tojustifyinitiating an
« *.investigation ;
WhereastheCommission accordingly announced,byanoticepublishedinthe
2OfficialJournaloftheEuropeanCommunities ,theinitiationofaproceeding
concerning importsofcertainrefrigerators originating inCzechoslovakia ,
theGermanDemocratic Republic,Hungary,Poland,Romania,theSovietUnionand
Yugoslavia andcommenced aninvestigation ofthematteratCommunitylevel;
0JNoL339,31.12.1979,p.1
20JNoC162,02.07.1981,p.3

WhereastheCommissionofficially soadvisedtheexportersandimporters
knowntobeconcerned;
WhereastheCommissionhasgiventhepartiesdirectlyconcernedthe
opportunity tomakeknowntheirviewsinwritingandtobeheardorally;
Whereasthemajorityofthepartiesconcernedhavetakenthisopportunity ;
Whereas,inordertomakeanassessmentofthedumpingmarginandinjury,
theCommissionsoughtandverifiedallinformationitdeemedtobe
necessaryandcarriedoutinvestigations atthepremisesoftheonlyYugoslav
producerandexporterc6-operating intheenquiry,Gorenje(Valenje)andthe
3 .
followingimporters:inBelgium:Asogem NVandArtselNV;inDenmark:Gorenje
Skandinavien ApS;intheFederalRepublicofGermany:IVGBulka-Lehel GmbH;
inFrance:GarellySA,GeneraleSidexSAandSidemeSA;inGreece:
GorenjeHeliasCo,Ltd;inIreland:Electro-Diesel IrelandLtd;
andintheUnitedKingdom:AstralDomestic
EquipmentLtd,Curry'sLtd,Technical &OpticalEquipment (London)Ltdand
USC(ConsumerProducts)Ltd;whereastheCommissionalsocarriedout
investigations atthepremisesofalmostallthecomplainant EECproducers,
including:intheFederalRepublicofGermany:Bauknecht GmbH;
in,France:Thomson-Brandt SA;inGreece:ElindaSA;
inItaly:IbernaSpA,KellyItaliaSpA,MerloniElettrodomesti ciSpA,
PargestSpA,PhilipsSpA,SiltalCasaSpAandIndustrieZanussiSpA;and
intheUnitedKingdom:ElectroluxLtd,LECRefrigeration LtdandThorn
DomesticAppliances (Electrical )Ltd;
WhereastheCommissionselectedastheinvestigation periodtheyearended
30June1981;
Whereas,inordertoestablishwhethertheYugoslavimportsweredumped,
theCommissionusedYugoslavdomesticpricestoestablishthenormalvalue;DJ'L19
27.1.1982

-3-
WhereastheCommission hadtotakeintoaccountthefactthatCzechoslovakia ,
theGermanDemocratic Republic,Hungary,Poland,RomaniaandtheSovietUnion
arenotmarketeconomycountires;
Whereas,forthatreason,theCommission hadtobaseitscalculations in
respectofthesecountries onthenormalvalueinamarketeconomycountry;
whereasinthatconnection,thecomplaint hadcitedtheYugoslavdomestic
market; '
Whereas,inthecourseofthediscussions withtheexportersfromCzechoslovakia ,
theGermanDemocratic Republic,Hungary,Poland,RomaniaandtheSovietUnion,
thecomparability oftheYugoslavmarketforrefrigerators wascontested
becausepricesweresaidtobeunrepresentative ;whereasTurkey,Spain
andBrazilweresuggested asalternatives butwerenotconsidered reasonable
becauseofdifferences inmarketsituations;whereasinthelightofthe
inspectioncarriedoutatthepremisesoftheYugoslavproducer
!
itwouldappearreasonable tousetheYugoslav domesticpriceasan
analoguenormalvaluesincethemanufacturing processes,technicalstandards
andtechnology aresimilartothoseusedbytheotherexportersconcerned;
Whereastheassessment ofdumpingforallsevencountries wasaccordingly
madebycomparingweightedaverageYugoslavdomesticpricesatanex-factory
levelwithexportpriced/totheCommunityatthesamelevelfrom
eachcountryinquestionduringtheinvestigation period;
Whereas,totakedueaccountofthedifferences affectingpricecomparability ,
discounts andsalesandservicecostsbornebytheYugoslavmanufacturer
weredeductedfromitsdomesticprices;whereasforalltheexportingcountries
concernedaccountwasalsotakenofdifferences inphysicalcharacteristics
whereappropriate,suchasvolume,freezingcapacityandtypeof
defrosting system,theallowancebeingbasedontheestimatedproduction
costsaccountingforsuchdifferences ;whereasallowances werealsomadefor
differences inconditionsofpaymentandfortransport andassociated costs
totheCommunityfrontier;whereasallowancesfordifferences inadvertising
andsalespromotioncostsandresearchanddevelopment costsclaimedbythe

-4-
YugoslavexporterwerenotallowedsincetheCommission consideredthat
theywerenotdirectlyrelatedtothesalesoftherefrigerators inquestion
whereasthefollowing
adequate
claimswerealsonotallowedbecauseno'proofjustifying themwasgiven:
allowancesfordesigndifferences claimedbyexportersfromtheGerman
Democratic RepublicandPoland,allowancesfordifferences inpackaging
anddifferences inmeasurements claimedbyexportersfromtheGerman
Democratic Republic,allowancesfordifferences inthemarketvalueof
free-standing versustable-toprefrigerators claimedbyHungarian
exporters;whereasclaimsfor,differencesincompressors usedbyHungarianand
Polishexporters werenottakenintoaccountbecauseitwasconsidered
thatthesedidnotrepresent adifferenceinthephysicalcharacteristics
oftherefrigerators concernedwhichisperceivabletothepurchaserand
whichwouldinfluencehischdice; 1

-5-
Whereasthecomparisons showedtheexistenceofclumpinginrespectofthe
importsconsideredintheinvestigation,thedumpingmarginsbeingequalto
theamountbywhichthenormalvaluesasestablished aboveexceededtheprices
atwhichthegoodswereexportedtotheCommunity;whereasthemarginsvaried
dependingonthetypeandsizeofrefrigerator andtheexportingcountry;
whereasthemarginsrangedfrom7.4%to74.2%oftheexportpricesfreeat
Communityfrontier,dutyurfpaid;
Whereas,withregardtotheinjurycausedtotheCommunityindustry,the
evidenceavailabletotheCommission showsthatimportsintotheCommunity
oftherefrigerators inquestionoriginating inthecountriescoveredby
theinvestigation rosefromapproximately 511000unitsin1978to717000
unitsin1980;WhereasimportsintothoseMemberStatesforwhichstatisticsare
availableforthefirstninemonthsof1981amountedto498043unitscompared
with475756unitsimportedintothesameMemberStatesduringthecomplete
yearin1978; ,
Whereasin1978themarketshareheldbysuchimportsintheCommunitywas
15.8%,risingto20.3%in1980anditisestimatedtoha»»remainedat
approximately thesamelevelin1981;Whereasvirtuallyalloftheseimportsduring
theinvestigation periodhavebeenmadeatdumpedprices;
WhereastheresalepricesintheCommunityoftheserefrigerators
originating inthecountriesinquestionundercutthoseoflikeproducts
producedbyCommunitymanufacturers byapproximately 20%onaverage;
Whereastheconsequent impactontheCommunityindustry,whosevolumeof
production hasfallenby10%from3559000unitsin1978to3236000units
andhasremainedstaticin'1981,in1980/ischaracterized byareductioninthemarketshareofCommunity
producersandadepressionofpricesorthepreventionofpriceincreases
whichotherwisewouldhaveoccurred,makingitimpossibletocover
productioncostsorachieveareasonableprofitontherefrigerators in
question;WhereasallCommunityproducershaveexperienced considerable
increasesinstocksofrefrigerators heldduringtheperiodunder
consideration ;
WhereasmostoftheCommunityproducersareconsequently makinglossesor
inadequateprofitsonsalesoftherefrigerators coveredbytheproceedings;

-6-
WhereastheCommissionhasconsideredwhetherinjuryhasbeencausedby
otherfactorssuchascompetition betweenCommunityproducers,changes
inconsumptionpatterns,overcapacity intheCommunityindustryorimports
fromothercountries;whereasthemarketshareintheCommunityofthe
producersofoneoftheMemberStateshasincreasedslightlyduringthebutinvestigation period/ithasbeenestablishedthatthisincreaseis
insignificant insizeandthatsellingpriceshavebeeninexcessofthose
ofthedumpedimports;WhereasconsumptionintheCommunityhasincreasedbetween1978
and1980whilstproductionwithintheCommunityandimportsfromothernon-EEC
sourceshavebothdecreasedduringthesameperiod;whereas,therefore,thesub­
stantialincreaseindumpedimportsandtheextremelylowpricesatwhichthey
havebeenofferedforsaleintheCommunityhasledtheCommissiontodetermine
jthatthedumpedimports,takeninisolation,havecausedmaterialinjuryto
theCommunityindustryconcerned;
0JL113/71
1.5.1980
0JL113/71
1.5.1980WhereastheCommission,afterhavingexaminedtheCommunityproducers' and
importers'prices,costsandprofitability andmarketingconditions,has
determinedtheimportpricesnecessarytoeliminatetheinjurycaused;
ι
Whereastheexportersandimportersconcernedwereinformedofthemain
findingsofthepreliminaryinvestigation andcommentedonthem;whereas
undertakings wereconsequently offeredconcerningimportsfromCzechoslovakia ,
theGermanOemocra,ticRepublic,Hungary,Poland,Romania,theSovietUnionand
YugoslaviawhichwouldpreventarecurrenceofinjurytoCommunityproducers;
proposed inprices
Whereasthe/increases/takeaccountofthedifferences notedinthe
courseofinvestigations inthepriceschargedbythevariousexporting
countries;whereastheseincreasesneverexceedtheaveragedumpingmargins
andaregenerallybelowthislevel;
I
WhereastheYugoslavexporterconcernedrequestedthecontinuation ofthe
investigation intoinjury;Whereas,however,theCommissionconsidersthatboththe
dumpingandinjuryinvestigation havebeencompletedandthattheafore­
mentionedundertakings areacceptable;Whereas ,notwithstanding thisfact.

duringtheconsultations withintheAdvisoryCommittee oneof
theMemberStatesobjectedtothetermination oftheproceedings bythe
acceptance oftheseundertakings ;
HASDECIDED ASFOLLOWS:
SoleArticle
Theanti-dumping proceeding concerning importsofcertainrefrigerators
originating inCzechoslovakia ,theGermanDemocratic Republic,Hungary,
Poland,Romania,.theSovietUnionandYugoslaviaisherebyterminated on
basisoftheacceptanceofpriceundertakings offeredtotheCommission
bytheexporters concerned .
DoneatBrussels, FortheCouncil