ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)304
Vol.1979/0116

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(79)304final..
Brussels,7June1979
FOROFFICIAL USEONLY
Proposalfora
COUNCIL REGULATION (EEC)
amending Regulation (EEC)No459/68onprotection against dumpingorthe
granting ofbounties orsubsidies bycountries whicharenotmembersof
theEuropean Economic Community
(submitted totheCouncil bytheCommission )
C0M(79)304final.

EXPLANATORY MEMORANDUM
SincetheadoptionoftheEECanti-dumping Regulation no459/68,experience
hasshownthatitisnecessary,inordertoavoiduncertainty among
exporters,importers andtheauthorities chargedwithadministering
theRegulation,toclarifycertainconceptscontained therein.The
presentproposal isintended toachievethisend.
TheCommission drawstheCouncil'sattention tothefactthatits
proposal takesaccountofthefollowing elements :
.-conformity withtheCommunity'sinternational obligations resulting from
ArticleVIoftheGeneralAgreement onTariffsandTrade(GATT)andthe
1968Anti-Dumping Code;
-guidance givenrecently bytheEuropean CourtofJusticeandin
particular bytheopinionsexpressed bytheAdvocateGeneral;
-established practiceoftheCommunity'smajortradingpartners;
-officialposition-adoptedbytheCommunity duringtherecentGATT
discussions onthepriority problems andissuesinthefieldofanti-
dumpingpolicy.
AstheresultsoftheGATTMultilateral TradeNegotiations havenotyet
beenofficially adoptedbytheCommunity andastheywouldnotinany
eventberequiredtobeimplemented before 1January1980thepresent
proposal doesnottherefore seektheirimplementation whichwould
require aseparate proposal .

Proposal for a
COUNCIL REGULATION (EEC )
amending Regulation (EEC)No459/68onprotection against dumping orthe
granting ofbounties orsubsidies bycountries which arenotmembers of
theEuropean Economic Community
THE COUNCIL OFTHE EUROPEAN COMMUNITIES­
»
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article 113thereof ,
Having regard totheproposal from theCommission ,
Whereas theCommunity hasadopted common rules onprotection against
dumping orthegranting ofbounties orsubsidies bycountries which are
notmembers oftheCommunity andwhereas ,forproducts towhich theTreaty
establishing theEuropean Economic Community relates ,these rules are
1contained ,inCouncil Regulation (EEC)No459/68aslast amended by
Regulation (EEC)No1411/772;
Whereas these Community rules are,inlarge measure ,transposed from the
Agreement onimplementation ofArticle VIoftheGeneral Agreement on
Tariffs andTrade ,known astheAnti-dumping Code ;
Whereas theexperience acquired intheapplication ofcertain ofthese
rules demonstrates that itisexpedient toclarify certain concepts which
arecontained inthesaid rules ,taking account inter alia ofthe
established practice oftheCommunity 'smajor trading partners andofthe
Community inthecoal andsteel sector aslaid down byCommission
Recommendation No77/329/ECSC "^aslastamended byRecommendation No
158/79/ECSC4;
Whereas inparticular itisnecessary toalign more closely thedefinition
ofdumping tothelanguage contained inArticle VIoftheGATT andthe
Anti-dumping Code byintroducing theterm "normal value "andsetting out
theways inwhich itmaybedetermined ;
10JNoL93,
20JNoL160,
30JNoL114,
4ÓJNoL21,17.4.68 ,p,1
30.6,77 ,p.4
5.5.77 ,p.6
30.1.79 ,P.14

Whereasitisnecessarytodefinemorepreciselythemethodofcalculation
ofconstructed valuetobeusedinsituations whenthepriceofthelike
productonthedomesticmarketdoesnotpermitapropercomparisonand
particularly inthosecaseswherenoprofitisrealizedinthedomestic
marketofthecountryoforiginoftheproductunderconsideration ;
Whereasitisnecessarytoclarifythosesituationsinwhichsalesmaybe
consideredasnothavingbeenmadeintheordinarycourseoftrade,in
particularwithregardtocaseswhereaproductissoldatpriceswhichare
lessthanitscostofproduction,andtodefinemorepreciselythemethod
oFdetermining^normal value;
Whereasitisnecessarytoclarifythat,inthecaseofimportsfromstate-
tradingcountries,normalvalueisdeterminedonthebasisofpricesor
costsofalikeproductinamarketeconomycountryor,ifnecessary,
fromsuchpricesintheCommunity;
Whereasitisappropriatetogiveadefinitionofexportpriceandto
indicatemorepreciselytheallowancestobemadeinthosecaseswhere
reconstruction ofsuchpricefromthefirstopenmarketpriceisrequired;
Whereas,insofarasallowancesapplicableinmakingcomparisons between
exportpriceandnormalvalueareconcerned,itisadvisabletoestablish
thattheonusofprooffallsonthepersonclaimingtheallowances;
Whereas/inordertoremovepossiblemisunderstanding itisnecessaryto
redefinetheterm"marginofdumping"andtoprovideformethodsof
calculation wherepricesandmarginsvary;
Whereas,withregardtoinjury,itisnecessarytoclarifytherules
regardingthedetermination ofinjuryandinparticulartoensurethat
injuriescausedbyotherfactorsmaynotbeattributedtodumpingbutmust
beisolatedtherefrom;
Whereasitisessentialtoclarifythecircumstances underwhichinterested
partiesmayhaveaccesstoinformationusedinthecourseofinvestigations

-3-
Whereas,inordertodiscourage thecontinuation ofdumping,itisnecessary
tocreate,incaseswherethefactsasfinallyestablished showthatthere
isdumpingandinjury,thepossibility ofdefinitive collection ofprovisional
dutiesevenifspecific reasons,forexampletheacceptance ofanundertaking ,
maketheimposition ofadefinitive anti-dumping dutyunnecessary ;
Whereasitisnecessary forpractical reasonstomodifycertainoftherules
governing theextension ofprovisional anti-dumping measures;
Whereasitisnecessary toestablish asimplified procedure fortheconsideration
ofapplications forrefundsofanti-dumping duties;
Whereasitseemsopportune toauthorize theCommission tolaydown,in
conformity withtheCommunity'sinternational obligations ,provisions to
implement therulesonallowances andthetreatment ofinformation ;
Whereasthemodifications contained hereindonotprejudice anysubsequent
adaptation oftheCommunity'santi-dumping regulation whichcouldresultfrom
theMultilateral TradeNegotiations ,withintheframework oftheGeneral
Agreement onTariffs andTrade,
HASADOPTED THISREGULATION :
Article 1
Regulation (EEC)No459/68isherebyamendedasfollows:
1.Article 3shallreadasfollows :
"1.Aproductintroduced intoCommunity commerceshallbeconsidered tohave
beendumpedifitsexportpricetotheCommunity islessthanthenormal
valueofthelikeproduct.
2.a)Forthepurposes ofthisArticle,thenormalvalueshallbe:
aa)Thecomparable price,intheordinary courseoftrade;forthe
likeproductwhendestinedforconsumption intheexporting country
oforigin,or,

-4-
bb)WhentherearenosalesofthelikeproductIntheordinarycourse
oftradeinthedomesticmarketoftheexportingcountryorwhen,because
oftheparticularmarketsituationsuchsalesdonotpermitaproper
comparison,
i)thecomparablepriceofthelikeproductwhenexportedtoany
thirdcountry,whichmaybethehighestsuchexportpricebutshould
bearepresentative price;or
ii)theconstructedvalue,thatistosay,thecostofproduction,
includinggeneralexpenses,inthecountryoforiginplusareasonable
amountforprofit;asageneralruletheadditionforprofitshall
notexceedtheprofitnormallyrealizedonsalesofproductsofthe
same*generalcategoryinthedomesticmarketofthecountryoforigin.
IfnosuchprofitisrealizedtheCommissionshalldeterminethe
additiononanyreasonablebasisusingthebestevidenceavailable.
b)Whenevertherearereasonablegroundstobelieveorsuspectthattheprice
atwhichaproductissoldforconsumptioninthecountryoforiginisless
thanitscostofproduction,salesatsuchpricesmaybeconsideredasnot
havingbeen,madeintheordinarycourseoftradeifthey
aa)havebeenmadeoveranextendedperiodoftimeandinsubstantial
quantities and
bb)arenotatpriceswhichpermitrecoveryofallcostswithina
periodoftimeinthemonrralcourseoftrade.
Insuchcircumstances thenormalvaluemaybedeterminedonthebasisofthe
remainingsalesinthedomesticmarketmadeatnotlessthancostof
productionorofexportsalestothirdcountriesoroftheconstructed value
orbyadjustingtheabove-mentioned pricebelowcostofproductioninorder
toeliminatelossandprovideforareasonableprofit.Suchnormalvalue
calculations shallbebasedonthebestevidenceavailable.

-5-
c)Inthecaseofimportsfromcountries towhichRegulation (EEC)
1 . .2;
No109/70andMo2532/78 apply,orfromothercountries
withasimilareconomicstructure,normalvalueshallbedetermined in
anappropriate andnotunreasonable mannerononeofthefollowing bases:
aa)thepricesatwhichalikeproductofathirdcountrytowhichthe
above-mentioned Regulations donotapplyissoldeither
i)forconsumption inthedomestic marketofthatcountry,or
ii.)toothercountries,including theCommunity ;or
bbi)theconstructed valueofalikeproductinathirdcountrytowhich
the.above-mentioned Regulations donotapply;or
cc)ifneitherpricesnorconstructed valueasestablished underaa)
orbb)aboveprovideanadequatebasis,thepriceintheCommunity,if
necessary dulyadjustedtoreflectreasonable profits.
d)Whereaproductisnotimporteddirectly fromthecountryoforigin
butis-exportedtotheCommunity fromanintermediate country,thenormal
valueshallnormally bethecomparable priceofthelikeproductonthe
domestic marketofthecountryofexport.
However,comparison maybemadewiththepriceinthecountryoforiginif,
forexample,theproductismerelytranshipped throughthecountryof
exportorsuchproducts arenotproducedinthecountryofexport,or
thereisnocomparable priceforitinthecountryofexport.
Regulation establishing commonrulesforimportsfromstate-trading
countries (0JNoL19,26.1.79,p;1)
Regulation establishing commonrulesforimportsfromthePeople's
RepublicofChina (0JNoL306,31.10.78,p.1)

a)Theexportpriceshallbethepriceactuallypaidorpayablefor
theproductsoldforexporttotheCommunity.
b)Incaseswherethereisnoexportpriceorwhereitappearsthat
thereisanassociationoracompensatory arrangementbetweenthe
i•
exporterandtheimporterorathirdparty,theexportpricemaybe
constructedonthebasisofthepriceatwhichtheimportedproductis
firstresoldtoanindependentbuyer,oriftheproductisnotresold
toanindependentbuyerornotresoldintheconditionimported,onany
reasonablebasis.Insuchcasesallowanceshallbemadeforallcosts
incurredbetweenimportationandresale,includingalldutiesandtaxes,
andforareasonableprofit.
a)Inordertoeffectafaircomparison,theexportpriceandthenormal
valueshallbecomparedatthesaleleveloftrade,normallyatthe
ex-factorylevel,andasnearlyaspossibleatthesametime.
b)Dueallowanceshallbemadeineachcase,onitsmerits,fordifferences
inconditionsandtermsofsale,fordifferencesintaxation,andfor
otherdifferencesaffectingpricecomparability,providedthatwheresuch
allowancesareclaimedbyinterestedpartiestheycansatisfactorily
demonstratetotheCommissionthatsuchallowancesarejustified.
c)Noproductshallbeconsideredtohavebeendumpedbyreasonofthe
exemptionofsuchproductfromdutiesortaxesbornebythelikeproduct
whendestinedforconsumptioninthecountryoforiginorexportation,
orbyreasonoftherefundofsuchdutiesortaxes.
"Marginofdumping"meanstheamountbywhichthenormalvalueexceeds
theexportprice.
Wherepricesvary,dumpingmarginsmaybeestablishedonatransaction
bytransactionbasisorbyreferencetopreponderant,representative
orweightedaverageprices.
Wherevaryingdumpingmarginsarefound,weightedaveragesmaybe
established."

-7-
2.Paragraphs 1,2and3ofArticle4shallreadasfollows:
"1.Theevaluationoftheeffects^ofthedumpedimportsontheindustry
inquestionshallbebasedonexaminationofallfactorshavingabearing
onthestateoftheindustryinquestion,suchasdevelopments andprospects
withregardtoturnover,marketshare,profits,prices(includingtheextent
towhichthedelivered,duty-paidpriceislowerorhigherthanthemost
representative comparablepriceofthelikeproductprevailinginthe
ordinarycourseoftradewithintheCommunity),employment,volumeof
dumpedandotherimports,utilizationofcapacityofCommunityindustry,
productivity,andrestrictivetradepractices.Nooneormoreofthese
factorscannecessarilygivedecisiveguidance.
»
•2.Inordertoestablishwhetherdumpedimportsarecausinginjury,all
otherfactorswhichindividually orincombination maybeadversely
affectingtheCommunityindustryshallbeexamined.Thefactorstobe
consideredare,amongothers,thevolumeandpricesofundumpedimports
oftheproductinquestion,competition betweentheCommunityproducers
themselves,contraction indemandduetosubstitution ofotherproducts
ortochangesinconsumertastesandexportperformance .
3.a)Noinjurycanbeattributedtodumpingunlessthedumpedimportsare
demonstrably theprincipalcauseofsuchinjury.Forthepurposeof
suchdemonstration,theconsequences ofthedumpingpositivelyfoundto
besuchshallbeweighedagainsteachoftheotherknownfactorswhich
atthesametimemaybeinjuringtheindustry.Theinjuriescausedby
suchotherfactorsmustnotbeattributedtothedumpedimports.
b)Adetermination ofinjuryshallinallcasesbebasedonpositive
findingsandnotmerelyonallegation,conjectureorremote
possibility.Inthecaseofthreatofinjury,thechangeincircum­
stanceswhichwouldcreateasituationinwhichdumpingwouldcause
injurymustbeclearlyforeseenandimminent."

Paragraph 4ofArticle 10shallreadasfollows:
a)Thecomplainant andtheimporters andexporters knowntobe
concerned/aswellastherepresentatives oftheexportingcountry,
mayinspectallinformation madeavailabletotheCommission byany
partytoaninvestigation asdistinguished frominternal documents
prepared bytheCommunity authorities providedthatitisrelevant
tothedefenceoftheirinterests andnotconfidential withinthe
meaningofArticle 11andthatitisusedbytheCommission inthe
anti-dumping investigation .Tothisend,theyshalladdress a
writtenrequesttotheCommission/indicating theinformation required.
b)Exporters andimportersoftheproductsubjecttotheinvestigation
mayrequesttobeinformed bytheCommission serviceconducting the
investigation oftheessential factsandconsiderations onthebasis
ofwhichitintendstoadviseimposition ofdefinitive dutiesor
definitive collection ofamountssecuredbywayofprovisional duty."
Paragraph 2a)ofArticle 14shallreadasfollows:
a)Anti-dumping procedures maybeterminated withoutimposition of
anti-dumping dutiesorprovisional measures where,duringthe
examination ofthematter/theexporters giveavoluntary undertaking
torevisetheirpricessothatthemarginofdumpingiseliminated
ortoceasetoexporttheproductinquestiontotheCommunity/
providedthattheCommission /afterhearingtheopinions expressed
withintheCommittee/considers thisacceptable .Suchtermination
shallbedecidedinconformity withtheprocedure laiddowninthe
foregoing paragraph .Itdoesnotpreclude thedefinitive collection
ofamountssecuredbywayofprovisional dutiespursuanttoArticle17(2).

/f9
5.Paragraph 2of"Article 16shallreadasfollows
\
{\■0
h
.«rlV
"2.Notlessthanonemonthbeforeexpiryoftheperiodofthreemonths
t•
laiddowninArticle15(2)(a),theCommission shall,withoutprejudice
totheprovisions ofArticle 18,submitaproposal totheCouncileither
forCommunity actionunderArticle 17or,ifexporters andimporters
representing asignificant proportion ofthetradeinvolved sorequest
ordonotobject,andifexamination ofthematterhasnotyetbeen
completed,fortheextension oftheprovisional measures foraperiod
notexceeding threemonths.
InthelattercasetheCouncilshallactbyaqualified majority."
•6.'Paragraphs 1and2ofArticle 17shallreadasfollows :
"1.Wherethefactsasfinallyestablished showthatthereisdumping and
injury,andtheinterests oftheCommunity callforCommunity intervention ,
theCommission shall,afterhearingtheopinions expressed withinthe
Committee ,submitaproposal totheCouncil.TheCouncilshallactby
aqualified majority .
2.a)WhereArticle 15(1)hasbeenapplied,theCouncilshalldecide,
subjecttotheprovisions ofArticle15(2),andindependently of
whether adefinitive anti-dumping dutyistobeimposed,what
proportion oftheamounts secured bywayofprovisional dutyisto
bedefinitively collected .TheCouncilshallactbyqualified
majority onaproposal fromtheCommission .
b)Thedefinitive collection ofsuchamountshallnotbedecided upon
unlessthefactsasfinallyestablished showthattherehasbeen.
dumpingandmaterialinjury(andnotmerelythreatofmaterialinjury
orofmaterial retardation oftheestablishment ofaCommunity industry )
orthatsuchinjurywouldhavebeencausedifprovisional actionhad
notbeentaken."

-10-
7.Paragraph 4ofArticle 19shallreadasfollows:
"4.a)Where,subsequent totheapplication ofananti-dumping duty,an
v;.importercanshowthatthedptycalculated exceedstheactualdumping
marginwithinthemeaningofArticle3(5),theamountinexcessof
themarginshallbereimbursed ;whereprovisional measures weretaken,
.-hesameshallapplyinronpectofreleaseofsecurities .
b)Forthispurpos?,theimporter may,withinthreemonthsofthedate
onwhichtheproducts wereenteredforconsumption ,submitan
application totheMemberStateinwhoseterritory theywereso
entered.ThatMemberStateshallforwardtheapplication tothe
Commission assoonaspossible,eitherwithorwithoutanopinionas
toitsmerits.TheCommission shallinformotherMemberStatesforth­
withandgiveitsopiniononthematter.IfMemberStatesagre<=>with
theopiniongivenbytheCommission ordonotobjecttovtwithin
twentydaysofbeinginformed,theMemberStarainquestionshallact
inaccordance withthesaidopinion.Inallothercases,,theCommission
shall,afterconsidering anyopiniongivenbytheMemberStates,
decidewhetherandtowhatextenttheMemberStateshouldgram ,tlv-
application ."
8.ThefollowingArticle 21ashallbeinserted :
"TheCcmiission isauthorized tolaydown,afterhavingconsultedtic
Cornmv' -'mdinconformity withtheCommunity'sinternational obi4to':ions.,
frovis\cn .otoimplement therulesofthisRegulation relatingtor
a)Allowances affecting pricecomparability betweennormal
expoiJ:price(Article3(3)and(4);
b)Treatment ofinformation receivedduringtheinvestigation 'K'c1-T
nnd11)."
V»hsreference toArticle3(5)contained inArticle22shallb"rpplcr.c-d
br?reference toArticle3.(4)(c).

-11-
Article 2
»*
ThisRegulation shallenterintoforceonthedayofitspublication
intheOfficialJournaloftheEuropean Communities .
ThisRegulation shallbebindinginitsentiretyanddirectly
applicable inallMemberStates.
DoneatBrussels .