EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 23.12.2005 
COM(2005) 541 final 
  
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 1858/2005 imposi ng a definitive anti-dumping duty on 
imports of steel ropes and cables originating, inter alia, in India 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
1) CONTEXT OF THE PROPOSAL  
110 • Grounds for and objectives of the proposal  
This proposal concerns the application of Council Regul ation (EC) No 384/96 of 22 
December 1995 on protection against dumped imports from countries not members of the European Community, as last ame nded by Council Regulation (EC) No 461/2004 
of 8 March 2004 ('the basic Regulation') in the proceeding concerning imports of steel 
wire ropes originating, inter alia , in India. 
120 • General context  
This proposal is made within the context of  the implementation of the basic Regulation 
and is the result of enquiries carried out in  line with the substa ntive and procedural 
requirements laid out in the basic Regulation.  
130 • Existing provisions in the area of the proposal  
By Regulation (EC) No 1796/1999, the Council imposed definitive anti-dumping 
measures on, inter alia, steel  wire ropes originating, inter alia , in India. In parallel, by 
Decision 1999/572/EC, the Commission accepted an undertaking from, inter alia , a 
company in India. By Regulation (EC) No 1858/2005 decided that the anti-dumping 
measures applicable to  imports of the product concerned originating, inter alia,  in India 
should be maintained. 
141 • Consistency with other policies and objectives of the Union  
Not applicable. 
2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT  
 • Consultation of interested parties  
219 The interested party concerned has already had the possibility to defend its interests, in 
line with the provisions of  the basic Regulation. 
 • Collection and use of expertise  
229 There was no need for external expertise. 
230 • Impact assessment  
This proposal is the result of the im plementation of the basic Regulation. 
The basic Regulation does not foresee a general impact assessment for the 
circumstances surrounding the present proposal. 
 
EN 3   EN 3) LEGAL ELEMENTS OF THE PROPOSAL  
305 • Summary of the proposed action  
By Regulation (EC) No 1858/2005, the Council imposed definitive anti-dumping 
duties on imports of steel wire ropes originating, inter alia , in India. The exception is 
where this product is exported by the Indian  company Usha Belton Ltd (now known as 
Usha Martin Ltd) from which the Commission, by Decision 1999/572/EC, has 
accepted a price undertaking.  
This company has now been found to ha ve breached its undertaking therefore the 
Commission has withdrawn acceptance thereof.  
In view of this, it is also necessary to  amend Regulation (EC) No 1858/2005 so as to 
remove the exemption to the anti-dumping duties currently enjoyed by the company.  
310 • Legal basis  
Council Regulation (EC) No 384/96 of 22 December 1995 on protection against 
dumped imports from countries not member s of the European Community, as last 
amended by Council Regulation (EC) No 461/2004 of 8 March 2004.  
329 • Subsidiarity principle  
The proposal falls under the ex clusive competence of the Co mmunity. The subsidiarity 
principle therefore does not apply. 
 Proportionality principle  
331 The proposal complies with the proportiona lity principle for the following reasons. 
The form of action is descri bed in the above-mentioned ba sic Regulation and leaves no 
scope for national decision. 
332 Indication of how financial and admini strative burden falling upon the Community, 
national governments, regional a nd local authorities, economic  operators and citizens is 
minimized and proportionate to the object ive of the proposal is not applicable. 
 • Choice of instruments  
341 Proposed instruments: Regulation. 
342 Other means would not be adequate for the following reason(s). 
Other means would not be adequate because  the basic Regulation does not foresee 
alternative options. 
4) BUDGETARY IMPLICATION  
409 The proposal has no implication for the Community budget. 
 
 
EN 4   EN Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 1858/2005 imposi ng a definitive anti-dumping duty on 
imports of steel ropes and cables originating, inter alia , in India 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty esta blishing 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 Community1 (the ‘basic 
Regulation’), and in particular Articles 8 and 9 thereof, 
Having regard to the proposal submitted by th e Commission after cons ulting the Advisory 
Committee, 
Whereas: 
A. PREVIOUS PROCEDURE  
(1) In August 1999, by Regulation (EC) No 1796/19992, the Council imposed a definitive 
anti-dumping duty on imports of steel ropes and cables (‘the product concerned’) originating, inter alia , in India. 
(2) In November 2005, following an expiry review pursuant to Article 11(2) of the basic 
Regulation, the Council, by Regulation (EC) No 1858/2005
3 decided that the anti-
dumping measures applicable to imports  of the product concerned originating, inter 
alia, in India should be maintained. 
(3) By Decision 1999/572/EC4, the Commission accepted a price undertaking from an 
Indian company, i.e. Usha Martin Industr ies & Usha Beltron Ltd. This company has 
changed its name in the meantime and is  now known as Usha Martin Ltd (‘UML’). 
The change of name in no way aff ected the activitie s of the company. 
(4) As a result, imports into the Community of the product concerned of Indian origin, 
produced by UML or by any other related co mpany worldwide, and of a type covered 
by the undertaking (‘the product covered by th e undertaking’), were exempted from 
the definitive anti-dumping duties. 
                                                 
1 OJ L 56, 6.3.1996, p.1. Regulation as last amended by Regulation (EC) No 461/2004 (OJ L 77, 
13.3.2004, p.12.) 
2 OJ L 217, 17.8.1999, p.1. 
3 OJ L 299, 16.11.2005, p.1. 
4 OJ L 217, 17.8.1999, p.63. Decision as last amended by Regulation (EC) No 1678/2003 (OJ L 238, 
25.9.2003, p.13.)  
 
EN 5   EN (5) In this regard, it should be  noted that certain types of  steel wire rope currently 
produced by UML were not exported to the Community during the investigation 
period which led to the imposition of definitiv e anti-dumping measures and were not, 
therefore, within the scope of the exemption afforded by the undertaking. Accordingly, 
such steel wire ropes were liable to pa yment of the anti-dum ping duty when entered 
for free circulation in the Community. 
B. FAILURE TO COMPLY WITH THE UNDERTAKING 
(6) The undertaking offered by UML obliges it (a nd any related company worldwide) to, 
inter alia , export the product covered by the undertaking to the first independent 
customer in the Community at or above cer tain minimum import price levels ("MIPs") 
laid down in the undertaking. These price le vels eliminate the in jurious effects of 
dumping. In the case of resales in the Commun ity to the first independent customer by 
related importers, the resale prices of the product covered by the undertaking, after 
appropriate adjustments for selling, general and administrative costs and a reasonable 
profit, must also be at levels which eliminate the injurious effects of dumping. 
(7) The terms of the undertaki ng also oblige UML to provide the Commission with 
regular and detailed information in the form of a quarterly report of its sales (and resales by its related parties in the Community ) of the product conc erned originating in 
India to the Community. Such reports are in tended to include the products covered by 
the undertaking which benefit from the exem ption to the anti-dumping duty as well as 
those types of steel wire ropes not covere d by the undertaking and which are therefore 
liable to the anti-dumping duty. 
(8) Unless otherwise indicated, it is assumed by the Commission that the sales reports of 
UML (and the reports of resales of related companies established in the Community) are, as submitted, complete, exhaustive and correct in all particulars. 
(9) It was also acknowledged by UML that, with  regard to the exemption to the anti-
dumping duties afforded by the undertak ing, such exemption is conditional upon 
presentation to Community customs services  of an “Undertaking Invoice”. Moreover, 
the company undertook not to issue such Unde rtaking Invoices for sales of those types 
of the products concerned not covered by the undertaking and which are therefore 
liable to the anti-dumping duty. 
(10) It is also a condition of the undertaking that  the terms and provisions thereof apply to 
any related company to UML, worldwide. 
(11) For the purposes of ensuring compliance w ith the undertaking, UML also agreed to 
provide all information considered necessa ry by the Commission and to allow on-spot 
verification visits at its premises, and those of  any related companies, in order to verify 
the accuracy and veracity of data submitted in the said quarterly reports. 
(12) In this regard, verification visits were carri ed out at the premises of UML in India and 
at those of a related company to UML in Dubai, i.e. Brunton Wolf Wire Ropes FZE 
(‘BWWR’). 
 
EN 6   EN (13) The verification visit to the Indian compa ny showed that significant volumes of the 
product concerned not covered by the undertak ing had been omitted from the quarterly 
undertaking sales reports submitted to the Commission. Furthermore, the goods in question had been sold by UML to its rela ted importers in the UK and Denmark and 
included on Undertaking Invoices. 
(14) The verification visit to the Dubai company showed that ce rtain steel wire ropes had 
been exported to the Community from Du bai and declared at import into the 
Community as having United Arab Emirates orig in when in fact they were of Indian 
origin and therefore liable to the anti-dumpi ng measures applicable to imports of steel 
wire ropes originating in I ndia. The goods in question ha d not been re ported on the 
quarterly undertaking sales report nor, as was admitted by the company, had anti-dumping duty been paid on them. The goods had also been resold to the first independent customer in the Commu nity at prices below the MIPs. 
(15) Commission Decision (EC) No 2005/…./EC
5 sets out in more detail the nature of the 
breaches found. 
(16) In view of these breaches, acceptance of  the undertaking offered by Usha Martin 
Industries & Usha Beltron Ltd, now known as Us ha Martin Ltd (Taric additional code 
A024) has been withdrawn by Commi ssion Decision (EC) No 2005/…/EC. A 
definitive anti-dumping duty should therefore be imposed forthwith on imports of the 
product concerned exported to the Community by the company concerned. 
(17) In accordance with Article 8(9) of the basi c Regulation, the rate of the anti-dumping 
duty must be established on the basis of the facts established within the context of the 
investigation which led to the undertaking. As the inve stigation in question was 
concluded by a final determination as to dumping and resulting injury by Regulation 
(EC) No 1796/1999 and as these measures were maintained by Regulation (EC) No 
1858/2005, it is considered appropriate that th e definitive anti-dumping rate is set at 
the level and in the form imposed by these Regulations, namely 23,8% of the net, CIF 
free-at-Community-frontier price, before duty. 
C. AMENDMENT OF REGULATION (EC) No 1858/2005 
(18) In view of the above, Regulation (EC) No 1858/2005 should be amended accordingly. 
HAS ADOPTED THIS REGULATION: 
                                                 
5 ….. 
 
EN 7   EN Article 1 
The table in Article 2(1) of Regulation (EC) No 1858/2005 shall be replaced by the following 
table: 
Country Company TARIC 
additional 
code 
South Africa Haggie 
Lower Germiston Road Jupiter PO Box 40072 Cleveland South Africa A023 
  
 
Article 2 
This Regulation shall enter into force on the day following that of its publication in the 
Official Journal of the European Union . 
This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
Done at Brussels,  
 For the Council 
 The President