COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(90) 300 final 
Brussels, 28 June 1990 
Proposal for a 
COUNCIL REGULATION (EEC) 
Imposing a definitive antidumping duty on Imports of 
silicon metal originating In the 
People's Republic of China 
(presented by the Commission) 
Proposal for a 
COUNCIL REGULATION (EEC) 
imposing a definitive antidumping duty on imports of 
silicon metal originating in the 
PeopIe's Republie of ChIna 
The Council of the European Communities 
Having regard to tfee Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 19881> 
on protection against dumped or subsidized imports from countries not 
members of the European Economic Community and in particular Art.12 
thereof, 
Having regard to the proposal submitted by the Commission after 
consultation within the Advisory Committee as provided for under the 
abovementloned Regulation, 
WHEREAS 
A. Provisional Measures 
(1) The Commission, by Regulation (EEC) No 720/902) imposed a 
provisional antidumping duty on imports into the Community of 
silicon-metal falling within CN Code 2804 6900 and originating in the 
People's Republic of China. 
1) O.J. N" L 209/88, 2.8.1988 
2) O.J. N- L 80/90 Of 27.3.1990 
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B. Subsequent Procedure 
(2) Following the imposition of the provisional antidumping duty, the 
representatives of the complainants as well as representatives of the 
British and German user industry and one of the British importers 
requested and were granted an opportunity to be heard by the 
Commission. They also made written submissions making known their 
views on the provisional findings. 
c. Pump Ing 
(3) For the purpose of definitive findings normal value was established 
on the basis of the same method as that used for the provisional 
determination of dumping. This method has been criticized by one of 
the importers as not being justified, given the fact that the 
production conditions in the Community and the People's Republic of 
China are not comparable. However, in the case of imports from non-
market economy countries, Art. 2(5) of Regulation (EEC) N* 2423/88 
provides that normal value shall be based in an appropriate and not 
unreasonable manner, whenever possible, on the basis of prices or 
costs of manufacturers In a market economy third country. For this 
purpose the Commission contacted producers In four different 
countries, as described In recital 10 of Regulation (EEC) 720/90. 
(4) The Council confirms that in the absence of satisfactory cooperation 
from these companies, there is no other possibility but to establish 
normal value on the basis of the price payable in the Community for 
the like product, duly adjusted to include a reasonable profit margin 
in accordance with Article 2(5)(c) of Regulation (EEC) 2423/88 
However adjustments have been made when comparing normal value and 
export price as set out under recitals 5 and 6 be low. 
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Export Price 
(5) Since the Comission had no other findings the export prices have been 
definitively established in accordance with Art.7(7)(b) of Regulation 
(EEC) No 2423/88 on the basis of the information available, I.e. the 
import prices published by Eurostat. 
(6) The Commission found that this information was very similar to the 
information supplied by the exporters which had given partial replies 
to the Commission's questionnaire. 
(7) The Council confirms the Commission's findings and conclusions set 
out in recitals 11 and 12 of Commission Regulation (EEC) No 720/90. 
E. Comparison 
(8) One of the importers and a major part of the user industry alleged 
that the Commission, in comparing normal value, had not sufficiently 
taken into account the differences affecting the comparability of 
prices and In particular differences In the physical characteristics 
of the products and in the costs of transport from China to the 
Commun i t y. 
(9) However, the Commission, in comparing normal value with export 
prices, had adjusted the export price by the costs incurred by the 
importer as a result of checks on differences in volume and quality. 
Allowance was also made for differences in packaging and for the 
transports costs from China to the the Community (recital 13 of 
Regulation (EEC) 720/90); 
The Council confirms the Commission's conclusions. 
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F. Dumping margins 
(10) The Commission found the existence of dumping, the weighted 
average dumping margin expressed as a percentage of the total cif 
value of imports of the product concerned for the Investigation 
period being 38,73%. 
The Council confirms the findings In recital 16 of Regulation 
(EEC) 720/90. 
G. Inlurv 
(11) The Commission concluded, in its provisional findings, that the 
Community producers of silicon metal had suffered material 
injury. It based these findings principally on the Chinese 
exporters' rapid increase in the voiume of exports and In market 
share, the price undercutting practised by these exporters in the 
Community market and the fact that the Community Industry, by 
offering silicon metal at prices competitive with the dumped 
imports, had to sell their material at prices equal to or below 
cost of production. 
(12) The Community producers submitted evidence to the Commission 
showing that, since the beginning of 1989, the export prices of 
the Chinese producers/exporters had further decreased by 
approximately 10%. However, it is considered inappropriate in the 
present case, in conformity with standard practice, to take 
account of facts which have occurred after the investigation 
period. 
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(13) The user Industry and one of the importers maintained that the 
data presented in Regulation (EEC) No 720/90 showed only the 
existence of a normal, competitive situation and that the 
negative evolution of the Community industry was simply due to a 
lack of cost efficiency. However, these allegations were not 
supported by any evidence. The Council confirms the findings of 
the Commission as set out in recitals 18 to 27 of Regulation 
(EEC) No 720/90. 
H. Causation of injury 
(14) In recitals 28 to 31 of Regulation (EEC) No 720/90 the 
Commission found that the growth in imports from China coincided 
with the loss of market share by the Community producers and a 
loss of prof i tabiIi ty. 
(15) One of the importers challenged the causal link between the 
imports of the Chinese material and the injury suffered by the 
Community industry by alleging that cheap imports from other 
third countries had taken place during the period of 
invest igat ion. 
(16) This argument has already been raised during the preliminary 
investigation. The Commission has dealt with this question in 
recital 30 of Regulation (EEC) 720/90 and stresses once more that 
prices for imports from other non-member countries were 
remarkably higher than the prices for the Chinese material during 
the period of investigation. 
(17) The Council confirms the Commission's findings and conclusions in 
recitals 28 to 31 of Regulation (EEC) 720/90 that the imports 
under consideration taken in isolation have caused material 
injury. 
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I . Community Interest 
(18) Part of the user industry of the imported product claimed that 
the Commission had not sufficiently taken Into account the 
interests of the user industry to have the possibility of buying 
low priced material from outside the EEC. The industry 
representatives further claimed, that where a definitive duty 
would be imposed, the final product of their major clients, the 
automobile industry would experience a substantial price 
increase. 
(19) However the possible impact of the definitive duty on the costs 
of the finished products, In which siliconmetal is included, was 
acknowledged by the user industry to be below 1%. The Commission 
therefore considers, as already stated in recitals 33 and 34 of 
Regulation (EEC) 720/90, that the Community's interest that fair 
competition be reestablished on the Community markt and the 
Community producers' interest in the continuation of their own 
production and in fair prices outweighed the interests of the 
user industry to take advantage of the unfair practices. 
(20) in addition it was alleged that, after the imposition of a 
definitive duty, imports from other third countries would take 
over the market share of the Chinese material rather than 
removing the injury suffered by the Community industry. 
(21) As regards the possible replacement of Chinese imports by imports 
from other third countries the Commission considers that imports 
at fair prices from other third countries are not against the 
Interest of the Community and therefore cannot be an argument 
against measures to be taken against imports of dumped products. 
(22) The Council confirms these conclusions 
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J. Puty 
(23) Provisional measures took the form of an ad valorem antidumping 
duty, the amount of which was calculated at a level which would 
increase the prices of the Imported product to a theoretical 
selling price allowing the Community industry to realise a profit 
margin of 6,5%, which was considered to be a minimum profit 
margin in order to guaranty a producer a reasonable return on 
investment. 
(24) In order to remedy the continuous price decrease of the Chinese 
Imports, the Commission considers it more appropriate to impose a 
definitive antidumping duty in the form of a specific duty 
instead of an ad valorem duty. In taking account of the 
considerations given in recitals 36 and 37 of Regulation (EEC) 
720/90 it is considered that the amount of the definitive duty 
should be calculated on the basis of the provisional duty of 
18,7% on the weighted average CIF price of the Chinese material 
during the investigation period and amounts to 198 ECU per tonne. 
The Council confirms this conclusion. 
K. Collection of provisional duties 
(25) In view of the dumping margins established and the seriousness of 
the injury caused to the Community industry, the Council 
considers it necessary that amounts collected by way of 
provisional antidumping duties should be definitively collected 
to the extent of the amount of the duty definitively imposed. 
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HAS ADOPTED THIS REGULATION: 
Article 1 
1. A definitive antidumping duty is hereby imposed on imports of silicon 
metal falling within CN Code 2804 6900 originating in the People's 
Republic of China. 
2. The duty shall be 198 ECU/tonne of the Imported product. 
3. The provisions in force concerning customs duties shall apply. 
Article 2 
The amounts collected or secured by way of provisional antidumping duty 
under Regulation (EEC) No 720/90 shall be collected at the rates of duty 
definitively imposed where the definitive rate of duty is lower than the 
provisional antidumping duty and at the rates of provisional duty in all 
other cases. Secured amounts which are not covered by the rates of duty 
definitively imposed shall be released. 
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 CounclI 
The President 

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