COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 16.2.2001
COM(2000) 197 final
Proposalfora
COUNCIL REGULATION
imposing a definitive anti-dumpingduty onimportsofcertain electronic
weighing scales originating in Japan
(presented bythe Commission)
2EXPLANATORY MEMORANDUM
(1) Attached is a proposal for a Council Regulation maintaining the anti-
dumping duties on imports of certain electronic weighing scales (REWS)
originating in Japan.
(2) The review investigation concerning anti-dumping measures on imports of
REWS originating in Japan was initiated on 25 April 1998, under Article
11(2) and Article 11(3) of Council Regulation (EC) No 384/96 (the basic
Anti-dumping Regulation). In accordance with these Articles the measures
remain in force pending the outcome thereof.
(3) The proposal to maintain the definitive anti-dumping duties is based on the
likelihood of recurrence of dumping and injury identified during the review
investigation.
(4) The co-operating interested parties were informed of the essential facts and
considerations onthe basis ofwhich the Commission intended to recommend
that definitive anti-dumping duties be maintained. Subsequent to this
disclosure comments were received from an importer which have been taken
into consideration but did not alter the basic conclusions ofthe investigation.
(5) No co-operation was received from users. In reviewing all the interests
involved in the light of the comments received, and since the measures have
been in place for a certain period, it can be concluded that maintaining the
measures would not implyanysignificant adverse effects onusers.
(6) In the light of the above the Commission therefore proposes that the Council
approve the maintaining of an anti-dumping duty on imports from Japan
which range from 15,3 % to 31,6 %. Taking into account the duration of the
investigation, it is considered appropriate that the duration of the measures
should be limited to four years.
3Proposalfora
COUNCIL REGULATION
imposing a definitive anti-dumpingduty onimportsofcertain electronic
weighing scales originating in Japan
THE COUNCIL OFTHE EUROPEAN UNION,
Having regard tothe Treatyestablishing the EuropeanCommunity,
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, and inparticular Article 9 and Article 11 thereof,
Having regard to the proposal submitted by the Commission after consulting the
AdvisoryCommittee,
Whereas:
A. PROCEDURE
1. Measures subject to review involving Japan(1) In April 1993, by Regulation (EEC) No 993/93
2,t h eC o u n c i li m p o s e d
definitive anti-dumping measures on imports of certain electronic weighing
scales originating in Japan.
2. Measures in force involving othercountries
(2) In October 1993, by Regulation (EEC) No 2887/933,t h eC o u n c i li m p o s e d
definitive anti-dumping measures on imports of certain electronic weighing
scales originating in Singapore. In 1995 these measures were modified by
Regulation (EC) No 2937/954following an investigation which showed that
the dumping margin had increased as a result of the duties being absorbed.
These measures are also subject to a review which was opened in October
19985.
1OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 2238/2000 (OJ
L257, 11.10.2000, p. 2).
2OJ L104, 29.4.1993, p. 4.
3OJ L263, 22.10.1993, p. 1.
4OJ L307, 20.12.1995, p. 30.
5OJ C 324, 22.10.1998, p. 4.
4(3) On 16 September 1999, the Commission published a Notice in the Offical
Journal of the European Communities6announcing the initiation of an anti-
dumping proceeding in accordance with Article 5 of Regulation (EC)
No 384/96 (hereinafter referred to as the “basic Regulation”) regarding
imports into the Community of certain electronic weighing scales originating
in the People’s Republic of China, the Republic of Korea and Taiwan. This
investigation was concluded in November 2000 by Council Regulation (EC)
No 2605/20007, which imposed definitive anti-dumping measures on imports
ofcertainelectronic weighing scales originating inthese countries.
3. Request forreview
(4) Following the publication of a notice of impending expiry of the anti-dumping
measures in force on imports of certain electronic weighing scales originating
in Japan8, the Commission received a request dated 23 January1998 to review
the measures pursuant to Article 11(2)ofthe basic Regulation.
(5) The request was lodged on behalf of Community producers whose collective
output constituted a major proportion of the total Community production of
the product concerned.
(6) The request was based on the grounds that the expiry of the measures would
be likely to result in the continuation or recurrence of dumping and injury to
the Community industry. Having determined, after consulting the Advisory
Committee, that sufficient evidence existed for the initiation of a review, the
Commission initiated an investigation pursuant to Article 11(2) and 11(3) of
the basic Regulation.9The opening of the Article 11(3) investigation by the
Commission was based on the allegation in the request that dumping margins
had significantly increased since the previous investigation and that the expiry
ofthe measures would therefore result in increased dumping and injury.
4. Investigation
(7) The Commission officially advised the Community producers supporting the
review request, the exporting producers, importers and Eurocommerce (a user
association representing multiple and small users in the Community) which
were known to be concerned. Representatives of the exporting countries were
also officially advised. Interested parties were given the opportunity to make
their views known inwriting and to request a hearing within the time limits set
outintheNoticeofinitiationofthereview.
(8) The Commission sent questionnaires to the parties known to be concerned and
received replies from three Community producers and two Japanese
producers, only one of which had exported the product concerned to the
Community during the investigation period. The Commission also sent
6OJ C 262, 16.9.1999, p. 8.
7OJ L301, 30.11.2000, p. 42.
8OJ C 329, 31.10.1997, p. 6.
9OJ C 128, 25.4.1998, p. 11.
5questionnaires to importers and the user association. Two importers replied;
there was no response fromthe user associationor anyindividualusers.
(9) The Commission sought and verified all the information it deemed necessary
for the purposes of determining the likely continuation or recurrence of
dumping and injury and the Community interest. Verifications were carried
out at the premises ofthe following companies:
Exporting producers:
Yamato Scale Co. Ltd., AkashiIshida Co. Ltd., Kyoto
Applicant Community producers:
Bizerba GmbH &Co. KG, Balingen, Germany
GEC Avery Limited, (a subsidiary of the General Electric Company, plc),
Birmingham, United Kingdom
Testut/Lutrana S.A., Béthune, FranceImporters
DigiNederland B.V.,Purmerend, TheNetherlandsCarrinand Co. NV, Antwerp, Belgium
(10) The investigation of continuation and recurrence of dumping covered the
period from 1 April 1997 to 31 March 1998 (hereinafter referred to as the
“investigation period”). The examination of continuation and recurrence of
injury covered the period from 1994 up to the end of the investigation period
(hereinafter called the “analysis period”).
(11) The present review exceeded the period of 12 months within which it should
normally have been concluded pursuant to Article 11(5) of the basic
Regulation, due to the complexity of the investigation and in particular the
impact of the Euro-effect on the investigation (see recital (34)) and the
difficulties inestablishing findingsgiventheextentofnonco-operation.
(12) All parties concerned were informed of the essential facts and considerations
on the basis of which it was intended to recommend the maintenance of the
existing measures. They were also granted a period within which to make
representations subsequent to these disclosures. The comments of the parties
were considered and, where appropriate, the findings have been modified
accordingly.
6B. PRODUCT CONCERNED AND LIKE PRODUCT
1. The product concerned
(13) The product concerned is the same as in the original investigation, i.e.
electronic weighing scales for use in the retail trade (hereinafter referred to as
“REWS”) which incorporate a digital display of the weight, unit price and
price to be paid (whether or not including a means ofprinting this data) falling
within CN code ex 8423 81 50. REWS have different types or levels of
performance and technology. In this respect, the industry defines three
segments of REWS; low, mid and top ranges. These vary from stand-alone
REWS, without built-in printers to more sophisticated models with pre-set key
systems and the possibility of integration into computer-related control and
management systems.
(14) Although the potential use of REWS can vary, there is no significant
difference in the basic physical and technical characteristics of the various
types of REWS. In addition, the investigation has shown that between these
three segments there are no clear dividing lines, models in neighbouring
segments often being interchangeable. In line with the results of the previous
investigation, they have, therefore, to be considered as one single product for
the purposes ofthis investigation.
2. Like product
(15) It was established that the various REWS produced and sold in Japan have,
despite differences in size, life span, voltage or design, the same basic
technicaland physicalcharacteristics as compared tothe REWS exported from
Japan to the Community and accordingly have to be considered as like
products.
Likewise, apart from minor technical differences, Community-produced
REWS are basicallyalike in all respects to the REWS exported from Japan to
the Community.
C. DUMPING AND LIKELIHOOD OF RECURRENCE OF DUMPING
1. Preliminary remarks(16) As indicated above, this investigation is a combination of an expiry review
based on Article 11(2) ofthe basic Regulation and an interim review based on
Article 11(3), the latter having been initiatedto examine information contained
in the request for review indicating that the injurious dumping had increased.
The Commission decided not to pursue this Article 11(3) review because the
volumes sold on the Community market by the exporting producers were low
and there was insufficient evidence for a lasting change in circumstances to be
established. The Commission’s findings are, therefore, based on those
established under Article 11(2) relating to the likelihood of continuation and
recurrence ofinjurious dumping should the existing measures be removed.
7(17) According to Eurostat, some 995 REWS from Japan were imported into the
Communityduring the investigationperiod, as compared to 19,000 units in the
previous investigation period on which the measures subject to review were
based. The co-operation in this investigation has been very limited (a total of
35 units or less than 4 % of imports) with only partial co-operation
forthcoming from two producers, Yamato Scales Co. Ltd. and Ishida Co. Ltd.,
the latter not exporting to the Community market during the investigation
period. This compares to co-operation from four exporting producers in the
previous investigation.
2. Likelihood ofcontinuationorrecurrence ofdumping
(18) In accordance with Article 11(2) of the basic Regulation, the purpose of an
expiry review is to determine whether, or not, the expiry of the measures
would be likelyto lead to a continuationorrecurrence ofinjurious dumping.
Likelihood of continuation of dumping
(19) In examining whether there is a likelihood of continuation of dumping if
measures were removed, it is necessary to verify whether dumping exists at
present and whether anysuchdumping is likelyto continue.
(20) Onlytwo producers submitted comments inresponse tothe Notice of initiation
of the investigation. Both of these co-operated only partially. One had no
exports to the Community during the investigation period and therefore
provided no information on export prices while the other had exported but
provided incomplete information on normal values. Three other producers
which were involved in the previous investigation refused to co-operate
altogether. In these circumstances, the Commission only had access to very
limited information from the Japanese producers in order to determine the
existenceofdumping.
(21) The partial co-operator, Yamato Scales Co. Ltd provided complete
information on its export prices but incomplete information on normal values
as the dataprovided onlycovered one third of its domestic sales of the product
concerned (the remaining sales being made to related distribution companies).
The company also failed to provide any data on the selling, general and
administrative costs it had incurred on its domestic sales. A comparison of
these export prices with the incomplete data on normal values indicated that
significant dumping was taking place on this exporter's sales to the
Community. Also, a comparison of these export prices with the constructed
normal value established for this producer in the original investigation also
indicated the existence ofsignificant dumping.
(22) Moreover, one Japanese exporting producer, who accounted for the vast
majority of REWS imports from Japan during the investigation period, when
declaring his non co -operation, admitted that he was dumping on his exports to
the Community. The Commissionalso examined Eurostat data and the average
price of all exports from Japan derived from that data supported a finding of
dumping in that such price was lower than any normal value established for
the partialco-operator.
8(23) In view of the significant non co-operation the above information was
considered as the facts available under the terms of Article 18 of the basic
Regulation. As indicated, this showed the existence of a significant dumping
margin.
(24) Given the exchange rate fluctuations of the Japanese currency since the
previous investigation, the depreciation of the yen against the invoice
currency, i.e. US dollar, was examined also but it was found that the increased
export prices in yen was partly offset by a significant real fall in dollar export
prices (as reported byEurostat) since the original case. This was confirmed by
the findings for the partial co-operator where the depreciation of the yen did
not, insofar as could be deduced from the incomplete information received,
result in a lower dumping margin. Moreover, there were clear signs that the
depreciationofthe yen may not prove lasting.
(25) In addition to the finding of the existence of significant dumping during the
investigation period, no information was submitted showing that dumping was
unlikely to continue should measures be removed. In fact, the evidence
available to the Commission strongly suggests that these imports would
continue to be made at dumped prices for the foreseeable future should the
measures be removed. In particular, it should be noted that the Community
market is attractive for exporters in that, on the basis of information received
from the one partial co-operator, prices there are higher than in other third
countrymarkets (Taiwan, Malaysia) to whichthis companyalso exports.
(26) It should be furthermore noted that in Japan prices have remained
systematically higher than elsewhere, a situation which has persisted over a
number of years. Therefore, this situation is considered unlikely to change in
theshortormediumtermand makesthecontinuationofdumping verylikely.
Likelihood of recurrence of dumping
(27) Given that measures are deemed to have resulted in significantly lower
quantities being exported from Japan to the Community, the question of the
effects of the removal of measures in terms of increased quantities and
dumped prices to the Community, i.e. recurrence ofdumping, was examined.
(28) There are indicators which make a resumption of these imports in significant
quantities from both the partially co-operating and the non co-operating
companies likely. Firstly, the removal of these measures would make the
Community an attractive destination for Japanese exports in that prices appear
to be slightly higher there than in certain other third country markets on which
the exporting producers are present. Thus, given that there are still significant
Japanese exports to these other third country markets, the re-direction of at
least some ofthese exports to the Community would be very likely. Secondly,
the Community market is a very important one in terms of size and these
exporters are unlikelynot totake advantage ofanyremovalof measures.
(29) As to the price of these imports should they resume, there is no reason to
consider that the prices would be any different to those charged for the current
albeit low level of imports. Arguably, lower prices may be a pre-requisite for
9significantly increased quantities. A recurrence ofdumping is also made more
likely by the fact that, as indicated in recital (25), Japanese exports to third
country markets which have no measures in force (Taiwan and Malaysia) are
made at dumped prices. Nor is there any indication that the relatively high
prices in Japanare going to alter inthe short term.
D. SITUATION IN THE COMMUNITY REWS MARKET
1. Structure ofthe Community industry(30) Since the current anti-dumping measures were imposed on imports of REWS
from Japan in 1993, the Community industry has undergone a restructuring
and consolidation programme in order to maintain its competitiveness. A total
of ten companies co-operated in the previous investigation but following the
restructuring process in the industry only six of these companies remained
active in the investigation period. Three of these companies co-operated in the
present investigation. It has become evident during the investigation that other
Communityproducers restructuredalong similar lines.
(31) The co-operating Community producers represent 41 % of total Community
production in the investigation period and thus qualify as a major proportion
ofthe Communityproduction pursuant to Article 4(1) of the basic Regulation.
These producers are referred to as “Community industry” hereafter. In
addition two large companies supported the review request but did not fully
co-operate with the investigation. The representativity of Community
productionsupporting the complaint was, therefore, wellin excess of50 %.
(32) It should be noted that for the purposes of the above calculation of the
representativity of Community production, in accordance with Article 4(1)(a)
and (2) of the basic Regulation, any company operating in the Community
relatedto exporting producers in countries found to be dumping, was excluded
fromthe definitionoftotalCommunityproduction.
2. Consumption ofREWS onthe Community market
(33) Consumption in the Community has been calculated using verified sales data
provided by the Community industry, figures in the review request (for sales
of non co-operating Community producers) and import volumes obtained via
Eurostat. Consumptionwasas followsduringtheanalysisperiod:
Consumptionof
REWS inthe
Community (units)1994 1995 1996 1997 Investi-
gation
period
Community
Consumption174 448 161 682 172 314 177 391 184 990
10(34) The increase in consumption in 1997 and the investigation period was mainly
due to a one-off increase in demand from retailers arising from the
introduction of the Euro (“Euro-effect”). From 1997 onwards, retailers
purchased new, Euro-compliant models in anticipation of the introduction of
the Euro. As retailers were, thus, bringing forward their replacement of old
REWS, an increase in demand was created within the Community market and
the volume of sales increased. This improved situation will be of short-term
duration and sales volumes are predicted to drop back to normal levels by
2000, fall further to below normal levels from2001 before returning to normal
again by2004.
3. Imports concerned
Volume of imports
(35) Based on information fromEurostat (using Taric code 8423 81 50 10), REWS
imported fromJapanduring the analysis period developed as follows:
Volumeof imports
(units)1994 1995 1996 1997 Investi-
gation
period
Imports fromJapan 1 320 474 954 1 606 995
Market Share 0,8 % 0,3 % 0,6 % 0,9 % 0,5 %
Price behaviour of exporting producers
(36) As far as prices of the imports are concerned, it was considered most
appropriate to use the information provided by the sole co-operating producer
which exported to the Community market during the investigation period.
Given the nature of the product, it was considered representative to examine
the exporting producer’s price behaviour during the investigation period by
comparing its export prices with those of similar models sold by the
Community industry. Whilst it was deemed that these models provided a fair
comparison, the low volume of exports sold by this exporting producer,
inevitably makes it difficult to draw clear conclusions. On the basis of the
limited number of transactions available, however, there were indications that
the exporting producer concerned made sales at very low prices in comparison
with those of the Community industry. It was also evident that the decrease in
prices of these models during the analysis period, was roughly mirrored by a
reduction in prices charged by the Community industry (quoted at recital
(42)).
4. Situation oftheCommunity industry
(37) Inaccordance with Article 3(5) of the basic Regulation, the examination of the
impact of the dumped imports on the Community industry included an
11evaluation of all economic factors and indices having a bearing on the state of
the industry. However, certain factors are not dealt with in detail below
because they were found to be not relevant for the situation of the Community
industry in the course ofthis investigation. It should finally be noted that none
ofthese factors necessarilygives decisive guidance.
Production, utilisation of capacityand inventories
(38) Production of all REWS fell over the period 1994 to 1996, but then increased
in line withthe Euro-effect as explained at recital(34). The capacityutilisation
rateofthe Community industryincreased by6 % during the analysis period.
Community industry
Production andcapacity
Index1994 = 1001994 1995 1996 1997 Investi-
gation
period
Volume allREWS
produced74 829 70 862 69 926 77 057 75 915
Capacity(allREWS) 105 446 106 770 100 338 99 888 100 625
Capacityutilisationrate
(allREWS)71 % 66 % 70 % 77 % 75 %
It was considered that the level of inventories could not be considered to have
any significant effect on the situation of the Community industry because the
Community industry used a production to order system whereby stocks were
almost non-existent.
Sales volume
(39) Sales of total REWS units made by the Community industry on the
Community market fell over the period 1994 to 1996, but then increased in
line withthe Euro-effect as explained at recital(34)
Sales in units 1994 1995 1996 1997 Investi-
gation
period
Sales of Community
industry58 245 54 307 53 485 57 794 58 002
12Sales turnover
(40) The sales turnover of total REWS made by the Community industry on the
Community market fell over the period 1994 ot 1997, but then increased in
line withthe Euro-effect as explained at recital(34).
Sales
turnover in
ECU1994 1995 1996 1997 Investiga-
tion period
SalesofCommunity
industry87 445 80 679 77 066 74 079 77 902
Market share and growth
(41) The market share of the Community industry fell from 33,4 % in 1994 to
31,4 % in the investigation period. Therefore, the Communisty industry could
notbenefit fullyfromthegrowthofthe market.
Price development
(42) Ananalysis ofREWS pricing inthe Communitywas made byreference to the
sales prices of all models sold by the Community industry. The development
of weighted average prices for sales to unrelated customers during the analysis
period is as follows:
Development of
Prices of REWS(ECU/unit)1994 1995 1996 1997 Investi-
gation
period
AllREWS 1 576 1 562 1 508 1 321 1 404
Index 100 99 96 84 89
Sales prices for all ranges decreased between 1994 and the investigationperiod by 11 %. This overall average price reduction was consistent across
allmodelrangesofREWS.
Profitability
(43) As evidenced by the Table below, return on net turnover was positive
throughout the period but, at the beginning of the analysis period, was
consistently below the rate considered necessary for the viability of the
industry. The improved figures for 1997 and the investigation period were due
totwo factors; the above-mentioned Euro effect which gave a temporaryboost
13to sales and, to a lesser extent, the effects of large scale restructuring carried
out bythe industryas explained at recital(30).
Profit (returnon
net turnover) in
theCommunity1994 1995 1996 1997Investi-
gation
period
Community
industry 2,2 % 3,1 % 1,6 % 4,9 % 9,6 %
Other performance related factors
(44) No detailed analysis was carried out on cash flow, ability to raise capital (or
investments) and return on investments because such an analysis would relate
tothesituationofthecompanyasa whole. The companies other business lines
represent more than 50 % of total company turnover and, therefore, an overall
analysis would not necessarily be representative for the product under
consideration.
As concerns the impact on the Community industry of the magnitude of the
actual margin of dumping, given the volume and the prices of the imports
from the countries concerned, this impact cannot be considered to be
negligible.
Productivity, employment and wages
(45) The table below shows that during the analysis period employment in the
Communityindustrydecreased by29 %.
Productivity per
employee
Index1995 = 1001995 1996 1997 1998 Investi-
gation
period
Number ofunits produced 74 829 70 862 69 926 77 057 75 915
Number ofemployees 1 370 1 305 1 208 1 063 978
Productivity 55 54 58 72 78
(46) Productivityper employee increased by42 % overthe analysis period.
(47) No detailed analysis was carried out on wages given the importance of other
business lines in the overall companies’ activities. Such an analysis would
relate to the situation of the company as a whole and not necessarily be
representative for the product under consideration.
14Conclusions on the situation of theCommunity industry
(48) The Community industry has undergone a major restructuring programme and
has improved production and distribution techniques. However, it has
continued to suffer from pricing pressures, which have squeezed margins and
resulted in a loss of market share and reductions in employment. Profitability
improved towards the end of the analysis period but, as mentioned at recital
(34), this was mainly due to one-off benefits of the “Euro effect”, and profit
levels are quickly expected to revert to those realised during the main part of
the analysis period. It is thus considered that the Community industry has not
fully recovered from the negative situation identified in the previous
investigation.
E. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY
1. Analysis ofthe situation oftheJapanese exporting producers(49) The development of imports from Japan is described at recital (35) above.
Japanese exporting producers have continued to sell on the Community
market, and it was submitted by the Community industry that they have
concentrated their sales in markets of certain Member States with specific
models, rather than selling the full range of models. This claim was examined
by the Commission, and it was clear, from sales figures submitted by
importers, that imports were indeed concentrated in certain markets, where the
exporters felt that they could compete, mainly on the basis of low prices,
without the need for large sales and distribution networks necessary for the
Communityindustry.
(50) The co-operating importers submitted that the reduction in exports from Japan
was due to a transfer of production to other countries, and claimed that, as this
transfer was lasting, there was no likelihood of an increase of REWS output in
Japanand consequent exportstothe Community in the future. In this respect it
should be noted that the history of anti-dumping investigations involving the
product concerned suggests that production is mobile, and can be moved to
countries not subject to measures with relative ease. The investigation has
shown that this process was aided by the fact that, when production moved
fromJapan to other South East Asian countries in the past, a significant value
of parts (especially electronic components) continued to be produced and
supplied fromJapan. On this basis the Commission considers that, if measures
on imports of the product concerned are allowed to expire, contrary to the
submission made by the co-operating importers, it can not be excluded that
exports from Japan would quickly reach their previous levels.In view of the
finding of this investigation that dumping has continued to occur, it can be
expectedthat such imports would be at dumped prices.
(51) In addition to the above point regarding the relative ease of relocation of
production, figures obtained from the partially co-operating exporting
producer show that capacityutilisation, for the existing production facilities in
Japan, was only 50 % in the investigation period. This shows that there is
clearly scope for increased production and exports should measures be
15allowed to lapse, as there are no other major markets which could absorb this
additionalproductionvolume.
(52) It should also be noted that this exporting producer also sells at low prices on
other markets(MalaysiaandTaiwanfor example). At similar levels ofsales as
those to the Community market, sales to Malaysia and Taiwan were at prices
around 30 % lower than the sales price (on a CIF basis excluding anti-
dumping duties) of the same model on the Community market. This clearly
suggests that the Community market would be very attractive to Japanese
exporting producers inthe absence ofanti-dumping measures.
(53) It is also clear that the Community import prices of the small number of
transactions observed during the investigation period are at low levels despite
the anti-dumping measures in force, but given their low volume these could
not exert significant downward pressure on the prices of the Community
industry. If measures were allowed to lapse exporters and importers would
have increased price flexibility. Exporting producers might be able to benefit
from increased export prices but this increase is likely to be limited in order to
increase the attractiveness of their products. However, in the absence of anti-
dumping duties it is likely that import prices would decrease and thus exert
pressure onthe Community industry’s prices.
2. Analysisofthe situation oftheCommunity industry
(54) The Community market for REWS is predicted to remain relatively stable in
the mediumterm, reflecting the fact that REWS are relativelymature products.
During the investigation period, the Community industrywas enjoying a boost
in sales volume caused by the “ Euroeffect”, but, as explained at recital (34),
this will not be a permanent phenomenon, and can be expected to be offset by
losses in future sales. In the medium term sales will return to a gradual but
slow decline. The Community industry can therefore expect to see no medium
or long termincreases in its sales volume, but its market share can be expected
to be eroded further due to pressure from imports from third countries. This
situation would be made much worse if measures were allowed to lapse with
respect to imports originating in Japan, because a large increase in the import
volumes could be expected, as existing production capacities were more fully
utilised in Japanor as production was switched back to Japan fromcountries it
moved to after the imposition of anti-dumping duties.
(55) Sales prices have declined on average by10,9 % during the period 1994 to the
investigation period, and it is expected that this trend will continue as the
Community industry attempts to maintain its market share. The current trend
in retailing away from small shops to large supermarket chains also has a
downward effect on prices because of the bargaining power of these chains.
The supermarket chains negotiate annual purchase contracts for REWS direct
with producers. During the investigation, it became clear that these large
retailers used low-priced offers from Japanese exporting producers to increase
the downward pressure on prices. Bearing in mind the expected increased
attractiveness of the Community market, the use of low price offers can be
expected to have a serious price depressing effect and thus supports the
likelihoodofrecurrenceofinjury.
163. Conclusion on recurrence of injury
(56) In the light of the above analysis it is concluded that the expiry of the
measures on these imports is likely to lead to a recurrence of injury within the
meaning in Article 11(2) of the basic Regulation. In reaching this conclusion,
the Commission has also taken into account the fact that the Japanese
exporting producers could influence the Community market to a far greater
degree than their market share during the investigation period would suggest.
If anti-dumping duties are removed it is highly likely that the dumping will
continue at much higher volumes of imports. This conclusion is supported
further by the level of unused production capacity available in Japan, by the
relative ease with which production facilities can be transferred between
countries, and by the finding at recital (52) above relating to the continuing
attractiveness ofCommunitymarket to Japanese exporting producers.
(57) The expiry of the measures therefore would worsen the situation of the
Community industry, eventually putting at risk the viability of Community
productionofREWS.
F. COMMUNITY INTEREST
1. Generalconsiderations
(58) Inaccordance with Article 21 ofthe basic Regulation it was examined whether
a prolongation of the anti-dumping duties would be against the interest of the
Community as a whole. The determination of Community interest was based
on an appreciation of all the various interests such as, the Community
industry, the importers and traders and the users of the product concerned. In
order to assess the likely impact of a continuation of the measures, the
Commission requested information from all interested parties mentioned
above.
(59) It should be recalled that, in the previous investigation, the adoption of
measures was considered not to be against the interest of the Community.
Furthermore, the present investigation is a review, thus analysing a situation in
which anti-dumping measures are in place. Consequently, the timing and
nature of the present investigation has allowed an assessment of any negative
impact onthe parties concerned bythe anti-dumping measures imposed.
2. Interestsofthe Community industry
(60) In view of the continuing weak economic situation of the Community
industry, especiallyin terms ofinadequate profitability (at the beginning ofthe
analysis period and in terms of medium term outlook), employment and
market share, the Commission considers that, in the absence of measures
against injurious dumping, the situation ofthe Community industry is likelyto
deteriorate. The previous review investigation involving REWS from Japan
expected that certain Community producers would probably cease production
of REWS, and that there might be a reduction in employment levels, given the
level of losses incurred by certain producers at that time. Although measures
17were maintained in 1993, there was still a reduction in employment due to a
consolidationprocess involving various mergers and acquisitions.
(61) Any further shrinking or deterioration of the Community industry would have
negative implications for employment and investment in the industry itself,
with knock-on effects, both on the industry’s suppliers and on the related
sectorsofproduction within the Community industry. Indeed, the technologies
of REWS and a whole range of other products are related. Examples of these
are other types of electronic scales (such as industrial scales) and appliances
used in the retail sector (such as slicing machines). Any loss of technological
know-how in the REWS products will mean a global loss of competitiveness
inthese related sectors..
(62) In addition, the investigation has demonstrated that the Community industry
has made everyeffort to meet the competition from Japan and other countries.
Examplesofsuchstepsare:
(a) Aprogressiontowards greaterconsolidation(fewer companies).
(b) The closure ofexcess capacity.
(c) Greater use of modern production techniques (e.g. production to order,
increased mechanisationand computerisation).
(d) Improvements inproductivity.
(e) Reducing costs bycontracting out the manufacturing ofsome
components, and
(f) Investing in new modelranges.
(63) Community producers have, therefore, shown a willingness and determination
to maintain a competitive presence on the Community market and are capable
of benefiting from the defence from unfair trade afforded by anti-dumping
measures.
3. Interests of importers
(64) The Commission considered the interests of importers in the Community and
received questionnaire responses from two companies (listed at recital (9))
which imported the product concerned from Japan during the investigation
period. The importers considered that the measures should be removed as they
were hindering their ability to sell a high quality product which was not
offered for sale by the Community industry. However, the Commission
considered that the model imported was similar to some of the top range
models produced and sold bythe Community industry, that theywere in direct
competitionwitheachother and thattheywere, therefore, like products.
(65) As to the importers’ sales and profitability, it is evident that the removal of
measures would enable importers to reduce their resale prices and increase
margins. In view of the findings on dumping and injury above, this increase in
profitabilitywould beduesolelytocontinueddumping.
184. Interests of users
(66) The Commission sought the co-operation of a body representing the interests
of retail outlets, including multiple users of the product concerned
(supermarkets), in order to identify if there was any significant impact on any
users.
(67) The Commission was notified informally by this body that there was to be no
response fromretailusers. Indeed, no other interested parties made themselves
known. This lack of co-operation is no doubt due to the very small proportion
of users’ total costs represented by REWS. The impact of maintaining
measures, in what is a highly competitive market, can be assumed to be
negligible.
5. Conclusion
(68) The low levelofco-operation byusers and importers clearly makes it difficult
to draw conclusions onthe impact in these sectors. It was concluded, however,
that the impact would be negligible, particularly for the retail sector where the
proportionofcostsrepresentedbyREWS is verysmall.
(69) It should be recalled, however, that there is likelihood of recurrence of
material injury to the Community industry, which has made great efforts to
remain competitive. The Community industry is temporarily benefiting from
the introduction of the Euro, however, if measures lapsed, and in view of the
diminishing effect of the Euro, it is likely that the Community industry will
deteriorate in the future and threaten the viability of the entire Community
production.
(70) On the basis of the above, the Commission finds that there are no compelling
reasons of Community interest against the maintenance of the anti-dumping
measures.
G. DEFINITIVE MEASURES
(71) It will be recalled that the current review was opened under both Article 11(2)
and Article 11(3) of the basic Regulation. As explained at recital (16), the
Commission decided not to pursue the Article 11(3) review. The
Commission’s findings are therefore based on those established under Article
11(2) relating to the likelihood of continuation and recurrence of injurious
dumping should the existing measures be removed.
(72) It follows that the existing anti-dumping duties should therefore be
maintained:
Yamato Scale Co. Ltd., Akashi 15,3 %
Tokyo Electric Co. Ltd., Tokyo 22,5 %
TeraokaSeiko Co. Ltd., To 22,6 %
19Ishida Co. Ltd., Kyoto 31,6 %
Allother companies 31,6 %
(73) For the reasons explained in recital (11) concerning the duration of the
investigation, it is considered appropriate that the duration of the measures
should be limited to four years,
HAS ADOPTED THIS REGULATION:
Article 1
1. A definitive anti-dumping duty is hereby imposed on imports of electronic
weighing retail trade scales currently classifiable within CN code ex 8423 81
50 (TARIC code8423 8150 10)and originating in Japan.
2. The duty, calculated on the basis of the net free-at-Community-frontier price
ofthe product, before duty, shallbe:
31,6 %(Taric additional code 8697), with the exception for retail electronic
weighing scales produced by the companies listed below, to which the
following rate shallapply:
Yamato Scale Co. Ltd., Akashi 15,3 %
(Taric additionalcode 8696)
Tokyo Electric Co. Ltd., Tokyo 22,5 %
(Taric additionalcode 8694)
TeraokaSeiko Co. Ltd., Tokyo 22,6 %
(Taric additionalcode 8695)
3. Unless otherwise specified, the provisions in force concerning customs duties
shall apply.
Article 2
The anti-dumping duties shall be imposed for a period of four years from the date of
entryintoforceofthisRegulation.
Article 3
This Regulation shall enter into force on the day following its publication in the
OfficialJournaloftheEuropeanCommunities.
20This Regulation shall be binding in its entirety and directly applicable in all Member
States.
Done at Brussels,
For the Council
The President