Proposal for a COUNCIL REGULATION amending Council Regulation (EC) No 772/1999 imposing definitive anti-dumping and countervailing duties on imports of farmed Atlantic salmon originating in Norway

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. By Regulation (EC) No 772/1999, the Council imposed definitive anti-dumping and countervailing duties on imports of farmed Atlantic salmon from Norway, except where this product is exported by one of the Norwegian exporters from which the Commission, by Decision 97/634/EC, had accepted individual price undertakings. These companies are listed in the Annex to the aforementioned Decision.

2. By Regulation (EC) No 1826/1999, the Commission imposed provisional anti-dumping and countervailing duties on three Norwegian exporters which had apparently violated their undertakings in relation to the fourth reporting quarter of 1998 or the first reporting quarter of 1999.

3. Having been given an opportunity to comment and having investigated further, two of these three companies were found not to have violated their undertakings and the Commission has repealed the provisional duties imposed against these companies. With regard to the remaining company, it has been definitively established it failed to comply with its obligations under the terms of its undertaking and consequently, it is proposed that the Council impose definitive duties against it.

4. In addition, two other Norwegian companies have claimed that they are "new exporters" within the meaning of the basic anti-dumping Regulation and have offered undertakings. Having investigated the matter, the Commission has accepted the undertakings and the companies have been added to the list of companies benefiting from an exemption to the duties.

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 772/1999 imposing definitive anti-dumping and countervailing duties on imports of farmed Atlantic salmon originating in Norway

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community [1], as last amended by Regulation (EC) No 905/98 [2] of 27 April 1998, and in particular Articles 8(9) and 9 thereof,

[1] OJ No L 56, 6.3.1996, p. 1.

[2] OJ No L 128, 30.4.1998, p. 18.

Having regard to Council Regulation (EC) No 2026/97 of 6 October 1997 on protection against subsidised imports from countries not members of the European Community [3], and in particular Articles 13(9) and 15 thereof,

[3] OJ No L 288, 21.10.1997, p. 1.

Having regard to the proposal submitted by the Commission after consulting the Advisory Committee,

Whereas:

A. PROVISIONAL DUTIES

(1) Within the framework of the anti-dumping and anti-subsidy investigations initiated by two separate notices published in the Official Journal of the European Communities [4], the Commission accepted, by Decision 97/634/EC [5], undertakings offered by the Kingdom of Norway and by 190 Norwegian exporters.

[4] OJ No C 235, 31. 8.1996, p. 18, and OJ C 235, 31.8.1996, p. 20.

[5] OJ No L 267, 30.9.1997, p. 81.

(2) The text of the undertakings provides that failure to submit a quarterly report of all sales transactions to the first unrelated customer in the Community within a prescribed time-limit except in case of force majeure would be construed as a violation of the undertaking, as would non-compliance with the obligation to sell the product concerned on the Community market at or above the minimum prices foreseen in the undertaking.

(3) For the first quarter of 1999, two Norwegian companies either failed to present a report within the prescribed time limit or appeared to have sold the product concerned to the Community market at prices which were below the prices foreseen in its undertaking. For the fourth quarter of 1998, the Commission also had reason to believe that another Norwegian exporter had sold the product concerned to the Community market at prices which were below the prices foreseen in its undertaking.

(4) The Commission therefore had reason to believe that these three companies had breached the terms of their undertakings and consequently, by Regulation (EC) No 1826/1999 [6] (hereinafter referred to as the "provisional duty Regulation"), imposed provisional anti-dumping and countervailing duties on imports of farmed Atlantic Salmon falling within CN codes ex 0302 12 00, ex 0304 10 13, ex 0303 22 00 and ex 0304 20 13 originating in Norway and exported by the three companies listed in Annex II of that Regulation. By the same Regulation, the Commission deleted the companies concerned from the Annex to Decision 97/634/EC, which listed the companies from which undertakings were accepted.

[6] OJ No L 223, 24.8.1999, p. 3.

B. SUBSEQUENT PROCEDURE

(5) All three Norwegian companies subject to the provisional duties received disclosure in writing concerning the essential facts and considerations on the basis of which these provisional duties were imposed. They were also given an opportunity to submit comments and request a hearing.

(6) Within the time limit set in the provisional duty Regulation, all the Norwegian companies concerned submitted comments in writing and one requested a hearing, which was granted. Following these submissions, the Commission sought and examined all information it deemed necessary for the purpose of a definitive determination on the apparent violations.

(7) In this regard, the Commission's investigation established that two of the companies against which provisional duties had been imposed had not violated their undertakings and that they should be reinstated on the list of companies benefiting from an exemption to the anti-dumping and countervailing duties. The exporters were informed of the essential facts and considerations on the basis of which it was intended to reinstate the Commission's acceptance of their undertakings.

As concerns the other company, Vie de France Norway AS (now known as Cuisine Solutions Norway AS), which is subject to provisional duties, it was informed of the essential facts and considerations on the basis of which it was intended to confirm the withdrawal of the Commission's acceptance of its undertaking and to recommend the imposition of definitive anti-dumping and countervailing duties and the definitive collection of the amounts secured by way of provisional duties. It was also granted a period within which to make representations subsequent to this disclosure.

(8) The Commission's findings in this respect are set out more fully in Regulation (EC) No [number] [7].

[7] OJ No L, [number], [date], p. [page]

(9) None of the comments submitted, however, have changed the conclusion that definitive anti-dumping and countervailing duties should be imposed on imports of farmed Atlantic salmon originating in Norway and exported by Vie de France AS (now known as Cuisine Solutions Norway AS).

D. DEFINITIVE DUTIES

(10) The investigations which led to the undertakings were concluded by a final determination as to dumping and injury by Regulation (EC) No 1890/97 and a final determination as to subsidization and injury by Regulation (EC) No 1891/97. While both these Regulations were repealed by Regulation (EC) No 772/1999 [8], the facts and considerations established therein remain valid (recital 19 of Regulation (EC) No 772/1999 refers).

[8] OJ No L 101, 16.4.1999, p.1, as last amended by Regulation (EC) No 1895/1999, OJ No L 233, 3.9.1999, p.1

(11) In accordance with Article 8 (9) of Regulation (EC) No 384/96 and Article 13(9) of Regulation (EC) No 2067/97 respectively, the rate of the anti-dumping duty and the countervailing duty must be established on the basis of the facts established within the context of the investigation which led to the undertaking. In this regard, and in view of recital 107 of Regulation (EC) No 1890/97 and recital 149 of Regulation (EC) No 1891/97, it is considered appropriate that the definitive anti-dumping and countervailing duty rates be set at the level, and in the form imposed by Regulation (EC) No 772/1999.

E. DEFINITIVE COLLECTION OF PROVISIONAL DUTIES

(12) A breach of undertaking has been definitively established in relation to one of the three exporters which were provisionally considered to have violated their undertakings. It is therefore considered necessary that, in relation to this exporter, any amounts secured by way of provisional anti-dumping and countervailing duties be definitively collected at the level of the definitive duties.

F. AMENDMENT OF THE ANNEX TO REGULATION (EC) NO 772/1999

(13) By Regulation (((/1999, the Commission accepted undertakings from two new exporters, Normarine AS and Oskar Einar Rydbeck. Pursuant to Article 2 of Regulation (EC) No 772/1999, the Commission also extended the exemption from the anti-dumping and countervailing duties to these exporters by adding their names to the Annex to that Regulation.

(14) Accordingly, in view of all the above, the Annex to Regulation (EC) No772/1999 exempting the parties listed therein from the duty, should be amended so as to remove the exemption from Vie de France Norway AS. The Annex should also be updated to take account of the exemption extended by Regulation (((/1999 to Normarine AS and Oskar Einar Rydbeck.

HAS ADOPTED THIS REGULATION:

Article 1

The Annex to Regulation (EC) No 772/1999 is hereby replaced by the Annex hereto.

Article 2

The amounts secured by way of the provisional anti-dumping and countervailing duties imposed by Regulation (EC) No 1826/1999 in relation to farmed (other than wild) Atlantic salmon falling within CN codes ex 0302 12 00 (Taric codes: 0302 12 00*21, 0302 12 00*22, 0302 12 00*23 and 0302 12 00*29), ex 0303 22 00 (Taric codes: 0303 22 00*21, 0303 22 00*22, 0303 22 00*23 and 0303 22 00*29), ex 0304 10 13 (Taric codes: 0304 10 13*21 and 0304 10 13*29) and ex 0304 20 13 (Taric codes: 0304 20 13*21 and 0304 20 13*29) originating in Norway and exported by Vie de France AS, now known as Cuisine Solutions Norway AS (Taric additional code 8321), shall be definitively collected.

Article 3

This Regulation shall enter into force on the day following that of 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

The President

ANNEX List of companies exempted from the definitive anti-dumping and countervailing duties

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