COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 18.04.1995 
COM(95) 140 final 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 2271/94 imposing a definitive countervailing duty on 
imports of ball bearings with a greatest external diameter not exceeding 30 mm, 
originating in Thailand but exported to the Community from another country 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
(1) In September 1994, the Council, by Regulation (EEC) No 2271/94, amended the 
definitive countervailing duty on imports of ball bearings with a greatest external 
diameter not exceeding 30mm, originating in Thailand but exported to the 
Community from another country, to 5.3%. 
(2) This duty had been imposed following a review of Commission Decision 
90/266/EEC accepting an export tax undertaking offered by the Royal Thai 
Government, in connection with the anti-subsidy proceeding concerning imports of 
the. above-mentioned ball bearings. This review revealed that a duty was necessary 
in order to prevent indirect imports into the Community avoiding the export tax 
levied by the Royal Thai Government on direct imports and to safeguard the 
effectiveness of the undertaking. 
(3) The level of the definitive duty is based on the rate of export tax, expressed as a 
percentage of the net, free at the Community frontier, price of the product. The 
amended rate of 5.3% imposed by Regulation (EC) No 2271/94 reflected a revised 
rate of export tax of 0.72 bant per piece, as determined by Decision 94/639/EC. 
(4) In December 1994 the Commission decided to review the above Decision and 
Regulation. In carrying out this review, it has recalculated the amount of subsidy 
granted to the Thai exporters at 0.66 bant per piece. The Royal Thai government 
has accordingly modified the rate of the export tax on ball bearings exported 
directly to the Community. 
(5) It is proposed to amend the definitive countervailing duty rate on indirect imports 
to an amount equivalent to the new rate of export tax (0.66 bant per piece). This 
amounts to 4.8% ad-valorem. 
& 
1-95-166 
COUNCIL REGULATION (EC) No ....../95 
of 1995 
amending Regulation (EEC) No 2271/94 imposing a definitive countervailing duty on 
imports of ball bearings with a greatest external diameter not exceeding 30 mm, 
originating in Thailand but exported to the Community from another country 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EC) No 3284/94 of 22 December 1994 on 
protection against subsidized imports from countries not members of the European 
Community1, and in particular Article 13 thereof, 
Having regard to the proposal submitted by the Commission after consultation within the 
Advisory Committee, 
Whereas: 
1 O.J. No L349 31.12.1994, p.22 
A. BACKGROUND 
(1) In September 1994, following a review, the Council, by Regulation (EEC) 
2271/942, amended the definitive countervailing duty imposed on imports of ball 
bearings with a greatest external diameter not exceeding 30 mm, originating in 
Thailand but exported to the Community from another country, from 6.7% to 5.3%. 
(2) The 6.7% countervailing duty had been imposed in July 1993 by Regulation (EC) 
1781/933, following a review of Commission Decision 90/266/EEC4 accepting an 
undertaking offered by the Royal Thai Government, in connection with the 
countervailing duty proceeding concerning imports of the above-mentioned ball 
bearings. This involved the Royal Thai Government levying an export tax to offset 
the subsidies granted. No countervailing duty was imposed at the time of adoption 
of this Decision. The review investigation revealed, however, that a duty was 
necessary in order to prevent indirect imports into the Community evading the 
export tax levied by the Royal Thai Government on direct imports and to safeguard 
the effectiveness of the undertaking. 
(3) The amended definitive duty rate of 5.3% on indirect imports, imposed by 
Regulation (EC) No 2271/94, was based on the revised rate of export tax of 0.72 
bant per piece, as determined by Decision 94/639/EC5, following a further review. 
B. REOPENING OF INVESTIGATION 
(4) In December 1994, the Commission initiated a review of Decision 94/639/EC and 
of Regulation (EC) No 2271/94, by a notice published in the Official Journal of the 
European Communities6 
(5) The purpose of this review was to recalculate the amount of subsidy granted by the 
Royal Thai Government, with a view to allowing a modification of the rate of 
export tax established by Decision 94/639/EC. Since the rate of countervailing duty 
on indirect imports directly reflects the export tax rate, the review also covers 
Regulation (EC) No 2271/94 imposing the definitive duty. 
2 OJ. No L247 22.9.1994 p. 1 
3 O.J. No L163 6.7.1993 p.l 
4 O.J. No L152 16.6.1990 p.59 
5 O.J. No L247 22.9.94 p.29 
6O.J.NoC348 09.12.94p.5 
© 
(6) The Commission officially advised the Royal Thai Government, the exporters and 
importers known to be concerned, as well as the complainant in the original 
investigation (Febma) and gave the parties directly concerned the opportunity to 
make their views known in writing and request a hearing. The Royal Thai 
Government, the exporters located in Thailand and the Community producers, 
represented by Febma, made their views known in writing. 
(7) The Commission sought and verified all information it deemed to be necessary for 
the purposes of a determination and carried out an investigation at the premises of 
the following: 
(a) Royal Thai Government: 
Department of Foreign Trade, Bangkok, 
Board of Investment, Bangkok 
(b) Thai exporters: 
NMB Thai Ltd, Ayutthaya, Thailand 
Pelmec Thai Ltd, Bang Pa-In, Thailand 
NMB Hi-Tech Ltd, Bang Pa-In, Thailand. 
All these exporting companies are wholly-owned subsidiaries of Minebea Co. Ltd., 
Japan. 
(8) Upon request, parties were informed of the essential facts and considerations on the 
basis of which it was intended to recommend the amendment to the rate of 
definitive countervailing duty. They were also granted a period within which to 
make representations subsequent to the disclosure. 
The written comments submitted by the parties were, where appropriate, taken into 
consideration. 
C. RECALCULATION OF SUBSIDY AMOUNT 
© 
(9) It has been determined that the countervailable subsidies granted to the exporters in 
Thailand in the period 1 October 1993 to 31 March 1994 ("the investigation 
period") amount to 0.66 baht per piece. The Royal Thai Government has 
accordingly amended the export tax rate on ball bearings exported directly to the 
Community to 0.66 baht per piece, and has offered a modified version of the 
undertaking to this effect. This has been accepted by Commission Decision 
95/.../EC7, which also explains in detail the reasoning with regard to the calculation 
of the amount of subsidy. 
D. INJURY AND COMMUNITY INTEREST 
(10) No new evidence was supplied with regard to injury or Community interest. The 
Council therefore maintains its conclusions set out in Regulation (EC) 2271/94 
concerning these matters. 
E. AMENDMENTS TO DEFINITIVE DUTY 
(11) In view of the change in the export tax rate from 0.72 to 0.66 baht per piece, the 
rate of definitive countervailing duty on indirect imports should be amended 
accordingly to an amount equivalent to the new export tax rate. When expressed as 
a percentage of the net, free-at-Community-frontier, price of the product, the new 
rate of countervailing duty amounts to 4.8%. 
F. COLLECTION OF ANTI-DUMPING AND COUNTERVAILING DUTIES 
(12) As explained in recital (12) of Regulation (EC) No 2271/94, the countervailing 
duty should continue to be collected in addition to the anti-dumping duty imposed 
by Regulation (EEC) No 2934/908. 
The combined amount of anti-dumping and countervailing duty to be collected in 
this case is, therefore, 11.5% (6.7% anti-dumping duty plus 4.8% countervailing 
duty). 
The basis for calculating the amount of both anti-dumping and countervailing duty 
should be the same net, free-at-Community-frontier, price of the product, 
7 See page ... of this Official Journal 
8OJ.NoL281 12.10.1990 p.l 
HAS ADOPTED THIS REGULATION: 
Article 1 
Article 1 of Regulation (EC) 2271/94 is replaced by the following: 
"Article 1(2) of Regulation (EEC) No 1781/93 shall be replaced by the following: 
"2. The countervailing duty expressed as a percentage of the net, free-at-
Community-frontier, price of product, shall be 4.8%". 
Article 2 
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 
ISSN 0254-1475 
COM(95) 140 final 
DOCUMENTS 
EN 02 11 
Catalogue number : CB-C0-95-152-EN-C 
ISBN 92-77-87780-4 
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