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COM (83) 459 
 
 
 
Vol. 1983/0 174 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
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classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
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COMMISSION OF THE EUROPEAN COMMUNITIES
C0M(83) 459 fin a l 
Brussels, 5  July 1983
Proposal fo r a  
COUNCIL REGULATION (EEC)
imposing a d e fin itiv e  anti-dumping duty on imports of urea ammonium n itra te  
so lu tio n  f e r t i l i s e r  (UAN) o rig in a tin g  in 
the U.S.A.
(submitted to the Council by the Commission)
C0MC83) 459 fin a l

EXPLANATO RY M E M O R A N D U M
The Commission reopened the proceedings in J u ly  1982 on receiving
a  request fo r review from CMC-Engrais, representing almost a ll Community 
production of U A N  s o lu tio n , s u ffic ie n t inform ation regarding alle g a tio n s of 
renewed dumping by U S  exporters and re sultant in ju ry .
A  U S  exporter which had also requested a review subsequently, along with two 
other exporters, withdrew from th e ir p rice  undertakings and the C c\ ne' l has, 
by Regulation iQl  /83 (OJ No L 19.1 .1983 )  imposed d e fin itiv e  anti- lumping 
duties on these companies.
Only one other U S  producer, Agrico ChemicaL C orporation, indicated that i t  
had exported to the Community and the Commission having conducted its  review 
in v e s tig a tio n , imposed, by Regulation 290/83 (OJ No L 33, 4.2.1983), a  
pro visio n a l anti-dumping duty of 4.14% on imports from th is  company. The 
v a lid ity  of th is  duty was then extended by two months to allow the p a rtie s to 
discuss more f u lly  the major area of disagreement, i.e . whether certain 
costs incurred by Agrico p rio r to the sales under consideration should be 
considered a le g itim a te  deduction in e sta b lish in g  normal vlaue. The Commission 
continues to take the view th a t such costs are not allow able. The d e fin itiv e  
margin found fo llo w in g  some adjustments to the p ro visio n a l duty is 3.9% .
As regards in ju ry  A grico's exports to the Community increased by 203%  during 
the f i r s t  four months of 1982 by comparison to the whole of 1981. These 
1982 shipments were a ll at dumped levels and accounted fo r some 9 %  of 
Community consumption. Taken with other dumped shipments from the U S  in 
1982 the to ta l market share held was some 21%  and was sold at prices con­
siderably below the Community producers' costs.
O n  the ba*sis of these fa cts the Commission therefore submits to the Council 
its  proposal fo r a Council Regulation imposing a  d e fin itiv e  anti-dumping 
duty on urea ammonium n itr a te  so lu tio n  f e r t i l i z e r  exported by the U S  company, 
Agrico Chemical Corporation at the level of 3.9%. I t  is also proposed to 
c o lle c t d e f in it iv e ly  the amounts secured as p ro visio n a l duty to a  maximum 
of 3.9%.

Proposal fo r a
COUNCIL REGULATION (EEC)
imposing a d e fin itiv e  anti-dumping duty on imports o f urea 
ammonium n itra te  s o lu tio n  f e r t i l i s e r  ( U AN ) o rig in a tin g  in the 
U.S.A.
T H E  COUNCIL O F  TH E EU R O PEAN  COMMUNITIES,
Having regard to the Treaty e stablishing the European Economic Community,
Having regard to Council Regulation (EEC) No 3017/79 o f 20 December 1979 
on protection against dumped or subsidized imports from countries not 
members of the European CommunityO), as amended by Regulation (EEC)
N o 1580/82(2), and in p a rtic u la r a r t ic le  12 th e re o f,
Having regard to the proposal submitted by the Commission a fte r 
consultation w ithin the Advisory Committee as provided fo r under 
the above Regulation,
Whereas,
A. Provisional action
The Commission, by Regulation (EEC) No 290/83 (3 ), imposed a p ro v is io n a l ant 
dumping duty on urea ammonium n itr a te  s o lu tio n  f e r t i l i s e r  (UAN) o rig in a tin g  
That duty was extended fo r a maximum period of two months by 
Regulation (EEC) No1368/83(4) at the request of the exporter 
concerned.
B. Subsequent procedures
Following the im position o f the p ro v is io n a l anti-dumping duty the 
and
exporter /c e r ta in .  , Community producers concerned requested, and 
were granted, an opportunity to be heard by the Commission .
The exporter .-s' ·, .. also made w ritte n
submissions making known its  views on the duty .
(1) 0J N o L 339, 31.12.1979, p. 1.
(2) 0J N o L 178,· 22.6.1982, p. 9.
(3) 0J N o L 33, 4.2.1983, p. 9.
(4) 0J N o L 31 .5.1983, p. 2 1

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The exporter concerned fu rth e r requested to be informed of ce rta in  
facts and essential considerations on the basis of which i t  was 
intended to recommend d e fin itiv e  action and th is  request was granted.
C. Dumping
3. For the imposition of the pro visio n a l duty the Commission, in a rriv in g  
at the most appropriate level at which to  make the comparison between 
normal value and export p ric e s , took account of the fact that ^grico 
supplied almost a ll its  domestic customers e x-te rm in a l; these storage 
term inals are situated in areas o f high consumption and are supplied 
mostly by d ire ct p ip e lin e  from the manufacturing plant and also by 
barge or tru c k . The Commission, in it s  p ro v is io n a l determ ination 
considered that the costs o f operating these term inals were, by nature, 
overheads and accordingly no allowance could be made fo r these costs.
4. The exporter, A grico, contested th is  determ ination and submitted fu rth e r 
evidence in support of its  argument that ce rta in  of these costs were 
treated by the company as va ria b le  and t h a t , in  any event, a  d ire c t re la tio n s h ip
n terms of A rtic le  2 (10) (c) o f Regulation (EEC) N o 3017/79 existed between a ll 
the costs of the term inal and the sales under consideration.
5 . In its  d e fin itiv e  determ ination the Commission took the view th a t, 
since such costs were incurred p rio r to the sale to purchasers
on the domestic market, 0r would have been incurred whether or not any 
p a rtic u la r sale was made, no d ire c t re la tio n s h ip  between these 
costs and these sales could be established and accordingly no allowance 
could be made;
6.  Allowance was, however, made fo r the cost of tra n sp o rtin g  the product to 
the te rm in a l, a s im ila r deduction being made in the case of export sales 
fo r the cost of transport from the plant to an f . o .b . le v e l.
7.  Account was taken of differences in the terms and conditions

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of sale, namely cre d it terms and salesmen's sa la rie s , and
0 f differences in the concentration of nitrogen in the product in
question; a number of expenses which Agrico claimed as a n c illa ry  to
salesmen's salaries were not deducted since no d ire c t re la tio n s h ip
between these expenses and the sales under consideration was e sta b lish e d , in 
addition no allowance was made fo r q u a n tity differences claimed by Agrico since these
claims did not f a l l  in to  any of the categories sp ecified in A rtic le  2(10) b) of Regulation 
(EEC) N o 3017/79.
8. The exporter also submitted evidence re la tin g  to tra n sp o rt costs to the 
Community fro n tie r which has led the Commission to adjust the weighted
average dumping margin expressed as a percentage of the c . i . f .  Community
fro n tie r p rice  to 3.9%.
D. In ju ry
N o fresh evidence regarding in ju ry  to the Community industry has been 
submitted, the Commission has therefore confirmed the conclusions on 
in ju ry  reached in Regulation (EEC) N o 290/83.
10. In the Commission's view, th e re fo re , the facts as f in a lly  determined 
show that the in ju ry  being caused by dumped imports of U A N  
o rig in a tin g  in the U.S.A., taken in iso la  ion from that caused by 
other fa c to rs , has to be considered as mate-rial.
E. Community Interest
11. Although no representations have been received by the Commission from 
consumers in the Community, importers to the Community have argued that 
the introduction of p ro te c tiv e  measures would s ig n ific a n tly  increase 
costs in the a g ric u ltu ra l industry and th e re fo re  not be in the Community's 
in te re s ts ; however, the Commission considers that the in te re s ts  of the 
Community are not served in the long term by a Community industry 
weakened or reduced by p e rs is te n t dumping and in view of the p a r tic u la r ly  
serious d if f ic u lt ie s  facing the Community industry and the re la tiv e ly
i

'  4 -
Low incidence of a  price increase on the costs of the a g ric u ltu ra l industry 
concerned, the Council has, however, come to the conclusion th a t i t  
is in the Community's in te re sts that action be taken.
In these circumstances, p ro te ctio n  of the Community's in te re sts 
ca lls fo r the im position of a  d e fin itiv e  anti-dumping duty on 
imports of U A N  o rig in a tin g  in the U.S.A. and exported by Agrico.
F. D e fin itiv e  duty
12. In the lig h t of the above determ ination the amount of the d e fin itiv e  
anti-dumping duty re la tin g  to exports by Agrico should be equal to the 
dumping margin found in the subsequent examination.
13. The im position of such a duty does not a ffe c t the continued a p p lic a tio n
of the d e fin itiv e  anti-dumping duties on imnorts of U A N  o rig in a tin g  in the 
U S A  imposed by Regulation (EEC) N o  349/81(5) since the Commission has 
received no evidence to a lte r its  view that such continued a p p lic a tio n  
is a  requirement fo r the e lim in a tio n  of in ju ry  and the prevention of 
its  recurrence.
G. C ollection of p ro visio n a l duty
14. The amounts secured by way of pro visio n a l anti-dumping duties should 
be collected to  a  maximum o f the duty d e f in it iv e ly  imposed.
H A S  A D O P TE D  THIS REGULATION:
A r tic le  1
1. A  d e fin itiv e  anti-dumping duty is hereby imposed on urea ammonium 
n itra te  so lu tio n  f e r t i l i s e r  f a llin g  w ith in  sub-heading ex 31.02 c  
o f the C om m on Customs T a r iff (NIMEXE code ex 31.02-90) exported by 
Agrico Chemical Company, Tulsa, Oklahoma, USA.

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2. T he am ount of the duty shall be 3.9%.
3. The provisions in force with regard to customs duties shall apply to 
the said duty.
Article 2
T he lums secured by w a y  of provisional anti~dumping duty under Regulation 
(E E C ) N o  290/83 shall be definitively collected up to a m axim um  of 3.9%.
Article 3
This Regulation shall enter into force on the third 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 M em b er States.
D one at Brussels, For the council