^^ I COMMISSION Oh THE EUROPEAN COMMUNITIES 
*** j 
Brussels, 25.03.1996 
COM(96) 122 UnaJ 
Proposal l'or a 
COUNCIL REGULATION (EC) 
imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5" 
microdisks) originating in Malaysia, Mexico and the United States of America, and 
collecting definitively the provisional duty imposed. 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. The Commission, by Regulation (EEC) No 2426/95 of 14 October 19951 imposed a 
provisional duty on imports of certain magnetic disks (3.5" microdisks) originating in 
the United States, Mexico and Malaysia. 
2. Following the adoption of the provisional measures, the interested parties, who so 
requested, were heard by the Commission and made written submissions. Upon 
request, parties were informed of the essential facts and considerations on the basis of 
which it was intended to recommend the imposition of definitive duties and the 
definitive collection of imports secured by way of a provisional duty. They were also 
granted a period within which to make representations subsequent to the disclosure. 
3. The oral and written comments submitted by the parties were considered and, where 
appropriate, the Commission's findings were modified to take account of them. 
4. The facts as finally established confirm dumping for exporters in Malaysia and non-
cooperating exporters in the United States and Mexico as well as injury to the 
Community industry caused thereby, especially demonstrated by price depression and 
resulting lack of profitability. 
OJNOL249, 17,10.95, P.3 
5. In these circumstances, the Commission considers that it is in the Community interest 
to adopt definitive measures intended to eliminate the injurious effect of the dumped 
imports concerned. Consequently, in accordance with Article 9 of Council 
Regulation (EEC) No 3283/942, the Commission, after consultation within the 
Advisory Committee, proposes the imposition of definitive anti-dumping duties on 
imports of certain magnetic disks (3.5" microdisks) originating in the United States, 
Mexico and Malaysia. 
6. In view of the dumping margins established, and the seriousness of the injury caused 
to the Community industry, it is also proposed that the amounts secured by way of 
provisional anti-dumping duty be definitively collected to the extent of the amount of 
the duty definitively imposed. 
OJNOL349, 31.12.1994, P. 1 
Council Regulation (EC) N° 
of 
imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5" 
microdisks) originating in Malaysia, Mexico and the United States of America, and 
collecting definitively the provisional duty imposed. 
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 
Community3, as last amended by Regulation (EC) No 1251/954, and in particular 
Article 9 thereof, 
Having regard to the proposal from the Commission submitted after consulting the 
Advisory Committee, 
Whereas, 
3 OJ NO L 349, 31.12.1994, P. 1. 
4 OJ NOL 122,02.06.1995, P. 1. 
A. Provisional measures 
(1) The Commission, by Regulation(EC) No 2426/955, hereinafter referred to as "the 
provisional duty Regulation", imposed a provisional anti-dumping duty on 
imports into the Community of certain magnetic disks (hereafter referred to as 
3.5" microdisks) originating in Malaysia, Mexico and the United States of 
America, and falling within CN code ex 8523 20 90. 
B. Subsequent procedure 
(2) Subsequent to the imposition of the provisional anti-dumping duty, one 
cooperating Malaysian producer and one company producing in both the United 
States and Mexico, which had explicitly informed the Commission of its intention 
not to participate in the proceeding, were heard by the Commission. Both parties 
also presented written submissions making known their views on the findings. 
(3) On request, parties were informed of the essential facts and considerations on the 
basis of which it was intended to recommend the imposition of definitive duties 
and the definitive collection of amounts secured by way of the provisional duty. 
They were also granted a reasonable period within which to make representations 
subsequent to disclosure. 
(4) Because of the volume and the complexity of the data examined, the investigation 
could not be concluded within the time limit provided for in Article 6(9) of 
Regulation (EC) No 3283/94, (hereinafter referred to as "the basic Regulation"). 
OJ NO L 249, 17.10.1995, P. 3. 
C. Product under consideration and like product 
(5) As no further arguments have been presented regarding the product under 
consideration and the like product, the findings set out in recitals (8) to (12) of the 
provisional duty Regulation are confirmed. 
D. Dumping 
(6) For the purpose of the definitive findings, dumping was established on the basis 
of the same methods used in the provisional determination of dumping. The 
dumping margin calculations were only modified to take account of clerical errors 
or technical amendments as no new facts and arguments on the methods were 
presented by the parties. 
(7) In the light of the foregoing, the findings set out in recitals (14) to (20) of the 
provisional duty Regulation, with the appropriate modifications, are confirmed. 
Dumping margins 
(a) Cooperating producers 
(8) As far as the cooperating producers in the United States of America and Mexico 
are concerned, the findings in recital (21) of the provisional duty Regulation are 
confirmed. 
(9) On the basis of technical modifications made to the calculations of normal value 
and export price for one cooperating producer in Malaysia, the definitive dumping 
margins calculated by the Commission, expressed as a percentage of the free-at-
Community-frontier price for each of the companies concerned are as follows: 
- Mega High Tech 31.8% 
- Diskcomp 46.4% 
(b) Non-cooperating producers 
(10) In the absence of comment, the findings in recitals (23) and (24) of the provisional 
Regulation are confirmed. 
E. Community Industry 
(11) No new arguments were presented with regard to the definition of the Community 
industry. The findings set out in recitals (25) to (28) of the provisional duty 
Regulation are, therefore, confirmed. 
F. Injury 
1. Prices of the dumped imports 
(12) The producer in the United States and Mexico referred to at recital (2) above 
objected to the use of Eurostat data as positive evidence of price undercutting for 
non-cooperating companies, on two grounds. First, as its distribution system on 
the Community market is similar to those American and Mexican producers 
which cooperated, any undercutting on its part would also have been de minimis. 
Secondly, as the CN code under which Eurostat data is collected for 3.5" 
microdisks is a "basket" category covering more than the product concerned, 
judgements on the basis of these figures are likely to be inaccurate. 
These contentions cannot be accepted. 
In the light of this producer's explicit decision not to participate in the proceeding, 
its claim that price undercutting on its part would also have been de minimis is 
unsupported by any evidence, and, consequently, amounts to no more than 
assertion. 
As to the second objection, it is the standard practice of the Community 
institutions to use Eurostat data as the best positive evidence available of import 
volumes and prices in the absence of more reliable indications from other sources. 
Further, the methodology employed by the Commission in this and the two prior 
proceedings (see recital (7) of the provisional duty Regulation) to address the 
"basket" nature of the CN code in question has been found to be reasonable and 
has not been criticised by the parties involved. In any event, the producer 
concerned has provided no evidence of whether, or to what extent, Eurostat 
figures may be misleading, as far as the product in question is concerned. 
2. Other Injury findings 
(13) No new facts and arguments were received in connection with cumulation, 
causality and the other injury findings. The findings in recitals (30) to (45) of the 
provisional duty Regulation are therefore confirmed. 
H. Community interest 
(14) No representations have been received in respect of the Community interest in 
this proceeding and no comments have been made by any interested parties on the 
provisional findings regarding Community interest. 
The findings in recitals (46) to (50) of the provisional duty Regulation are, 
therefore, confirmed. 
I. Duty 
(15) No comments were received on the methodology adopted by the Commission for 
the establishment of the duty rates to be applied, as set out in recitals (51) to (55) 
of the provisional duty Regulation. 
These are, therefore, confirmed, and, as the dumping margins definitively 
determined exceed the injury thresholds established for the cooperating producers 
in Malaysia, measures should be imposed at the level of these injury thresholds. 
As the injury thresholds established for the cooperating producers in Mexico and 
the United States are de minimis, no definitive anti-dumping measures should be 
imposed on imports of the like product manufactured by these producers. 
J. Collection of the provisional duties 
(16) In view of the dumping margins established, the injury caused to the Community 
industry, and of the latter's precarious financial situation, it is considered 
necessary that amounts secured by way of the provisional anti-dumping duty for 
all companies should be collected definitively at the duty rate definitively 
imposed, 
HAS ADOPTED THIS REGULATION : 
Article 1 
1. A definitive anti-dumping duty is hereby imposed on imports of 3.5" microdisks 
used to record and store encoded digital computer information, falling within CN 
code ex 8523 20 90 (Taric code 8523 20 90 10), and originating in Malaysia, 
Mexico and the United States of America. 
2. The rate of duty applicable to the net, free-at-Community-frontier price, not 
cleared through customs, shall be as follows : 
Country Rate of duty (%) Taric additional code 
Malaysia 46.4 8858 
Mexico 44.0 8882 
United States 44.0 8857 
with the exception of imports which are manufactured and sold for export to the 
Community by the following companies which shall be subject to the rates of duty 
mentioned below: 
Country and producer Rate of duty (%) Taric additional code 
a) Malaysia 
- Mega High Tech 12.8% 8855 
- Diskcomp 26.4% 8856 
10 
3. The duty shall not apply to imports of the product defined in paragraph 1 
manufactured and sold for export to the country by the following companies : 
Country and producer Taric additional code 
b) Mexico 
-Verbatim 8854 
c) United States 
- 3M 8853 
- TDK 8853 
- Verbatim 8853 
4. Unless otherwise specified, the provisions in force concerning customs duty shall 
apply. 
Article 2 
The amounts secured by way of the provisional anti-dumping duty pursuant to Regulation 
(EC) No 2426/95 shall be definitively collected up to the duty rate definitvely imposed. 
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, For the Council 
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ISSN 0254-1475 
COM(96) 122 final 
DOCUMENTS 
EN 02 11 
Catalogue number : CB-CO-96-132-EN-C 
ISBN 92-78-01842-2 
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