ÎŒ/MISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 596 final 
Brussels, 23 November 1993 
Amended proposal for a 
COUNCIL REGULATION (EC) 
imposing a dafinitiva anti-duitping duty on import» of 
daadburnad magnaaita originating in tha Paopla*a Rapublie of China 
(presented by the Commission pursuant to Article 189 A (2) 
of the EC-Treaty) 
tet ssf1 
Explanatory Memorandum 
1. The commission submitted to the Council a proposal for a Council 
Regulation (EEC) imposing a definitive anti-dumping duty on imports 
of deadburned magnesite originating in the People's Republic of China 
(COM (93) 413 final). 
2. Following discussions on the proposal at the Commercial Questions 
Group and at the COREPER certain issues were reconsidered. 
3. with regard to the comparison between normal value and export price, 
an allowance claimed by the importers and the end users for 
differences affecting price comparability between Turkey and China 
has been granted. The Commission has modified its calculations 
accordingly. 
4. As result of the modified calculation the minimum price at which the 
Chinese deadburned magnesite can be sold on the Community market 
should be 12 0 ECU per tonne. Consequently the duty should be equal to 
the difference between this minimum price and the net free at 
Community frontier price before customs clearance. 
5. Recitals 12 and 20 and Article 1 of the Commission's proposal 
(COM(93) 413 final) have been modified in order to take account of 
the above. 
6. For ease of consultation the parts of the text which are new or which 
are being modified are underlined. 
X 
Amended proposal for a 
COUNCIL REGULATION (EC) 
imposing a dafinitiva anti-dumping duty on importa of 
daadbumad magnasita originating in tha Paople's Rapublic of China 
In the proposal for a Council Regulation ((EEC) imposing a definitive 
anti-dumping duty on imports of deadburned magnesite originating in the 
People's Republic of China, the following texts replace recitals (12) 
and (20) and Article 1. 
For ease of reference the parts added or modified are underlined. 
"(12) The Chinese exporters argued that Chinese producers use simple, 
low cost, coke burning, shaft kilns and that an adjustment of 
10% should be made to reflect lower burning costs in China. 
The Commission established, however, that the Turkish producer 
also uses shaft kilns. By contrast the Commission accepted 
that an allowance should be made to reflect the higher cost of 
the fuel oil used by the Turkish producer and costs of 
production have thus been reduced by 3%. A number of importers 
and end users both before and after the imposition of 
provisional measures alleged that when importing Chinese 
deadburned magnesite they had to carry out themselves 
operations such as analysis of the product, monitoring of 
loading of the product and removal of foreign substances. It 
was alleged that this requires often the use, by the importers, 
of personnel in China. These operations, in the case of the 
Turkish producers, are normally done by the producers 
themselves and do not require any intervention of the 
purchasers. It was requested by these importers and end users 
that an allowance under Article 2.9 of the Basic Regulation 
should be granted to take account of differences in conditions 
and terms of sale affecting price comparability. The 
Commission considers on the basis of the information collected 
that the request for the allowance is justified, on the basis 
of the information available from the Turkish producer, these 
costs have been evaluated to be 6% of the constructed sales 
price and, for purposes of the comparison, normal value has 
been adjusted accordingly. 
No other observations having been raised by any other party, 
the findings and conclusions in recital 19 of the Provisional 
Regulation are hereby confirmed by the Council. 
The final examination of the facts showed the existence of dumping, 
the margin of dumping being equal to the amount by which the normal 
value exceeds the price for export to the Community. This margin is 
equal to ECU 4J_ per tonne. " 
"(20) As far as the amount of the duty is concerned, the Commission 
established in recital 44 of the Provisional Regulation that only a 
duty equal to the full dumping margin (as established in recital 
12) which would bring the Chinese prices up to the normal value, is 
sufficient to remove the injury, caused by dumping, experienced by 
the Community industry. No arguments concerning this duty amount 
were put forward, subsequent to the imposition of the provisional 
duty, the Council, therefore, confirms the Commission's findings 
and conclusions in this respect. 
As far as the form of the duty is concerned, the Commission 
considers that the structure of a State controlled economy gives 
the Chinese exporters considerable room for manoeuvre to further 
decrease their export prices and such falls in price by Chinese 
exporters have indeed taken place since 1988. The magnesite market 
is very sensitive to price instability thus the form of the duty 
should be such as to prevent further price decreases by the Chinese 
exporters. Therefore, neither a fixed amount of duty nor an ad-
valorem duty seem to be appropriate. 
In these circumstances it is considered that a minimum price at 
which the Chinese magnesite should be sold on the Community market 
should be established. This minimum price has been calculated on 
the basis of the weighted average normal value of deadburned 
magnesite as established in recital 9 taking into account the 
adjustments mentioned in recital 12. This minimum price adjusted to 
CIF community frontier value is 120 ECU per tonne for all grades. 
Consequently, the duty should be equal to the difference between 
this minimum price and the net free at Community frontier price 
before customs clearance. This is confirmed by the Council." 
"Article 1 
1. A definitive anti-dumping duty is hereby imposed on imports of 
deadburned magnesite falling within CN Code 2519 90 30 originating 
in the People's Republic of China. 
2. The amount of the duty, shall be the difference between ECU 120 per 
tonne and the net, free-at-Community-frontier price before customs 
clearance, if this price is lower. 
3. The provisions in force concerning customs duties shall apply." 
<c 
ISSN0254-1475 1 
COM(93) 596 final 
DOCUMENTS 
EN 1102 
Catalogue number : CB-CO-93-633-EN-C 
ISBN 92-77-61720-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg M