COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 291 final 
Brussels, 9 June 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
terminating the proceeding in connection with a review of ant I-dumping 
measures concerning Imports of fibre building board (hardboard) 
originating in Czechoslovakia, Poland and the USSR, confirming the 
expiry of the definitive antI-dumping duties imposed on 
imports from Czechoslovakia and Poland, and repealing the 
defenltive ant I-dumping duty imposed on imports from the USSR 
(presented by the Commission) 
Explanatory Memorandum 
1. Following the requests lodged under Article 14 and 15 of Council 
Regulation (EEC) No 2423/88 by the European Confederation of wood­
working Industries, the Commission announced In the Official Journal 
of the European Communities1 the Initiation of a review of anti­
dumping measures concerning Imports of fibre building board 
(hardboard) originating In Czechoslovakia, Poland, USSR, Romania, 
Sweden and BrazlI. 
2. The protective measures under consideration were adopted by the 
Council and only concern imports from Czechoslovakia, Poland and 
USSR. However, for the assessment of Injury or threat of Injury, It 
was considered appropriate to take Into account also the imports from 
Romania, Sweden and Brazil, where the Commission accepted 
undertakings. 
3. The development of Imports from the six countries Involved in the 
proceeding, assessed In the light of the Increase of Community 
consumption, leads to a combined market share which remained stable 
at about 21% during the last three years. Although the market share 
held by Imports originating In the State trading countries concerned 
rose from 6.1% to 8.3% over the same period, this had no significant 
Impact on the Community Industry because Imports from those countries 
did not directly compete with the Community production. 
4. As for the prices of Imports from the State trading countries 
Involved, considering the application of the ant I-dumping duties In 
force, as well as the adjustments Justified by differences in quality 
and finish of the imported product, levels of undercutting found for 
Czechoslovakia and Poland were not material and that found for USSR 
has not significantly affected the Community prIces. 
5. Based on the trends of certain relevant economic factors (production, 
capacity utilisation, stocks, sales, market share and profitability) 
it appears that the situation of the Community Industry has 
substantially improved. 
6. Under these circumstances the Community Industry Is not presently 
sufferelng material Injury. 
7. In order to analyse whether thé expiry of the measures In force would 
lead to a situation causing or threatening to cause material injury 
to the Community Industry, the probable development of volumes and 
prices of the imported product was taken Into consideration. In view 
of that development, such a situation Is not, at present, clearly 
foreseeable. 
1 OJ No C 165, 24.6.1988, p.2 
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8. As to dumping, given the findings with respect to Injury and threat 
of injury, It was considered unnecessary to further Investigate the 
question. 
9. It follows therefore, that the review proceeding concerning Imports 
from Czechoslovakia, Poland and USSR should be terminated without the 
imposition of further protective measures. As to the measures 
concerning USSR they should be repealed (the relevant five-year 
period has not expired), and those in respect of Czechoslovakia and 
Poland allowed to lapse. 
10. Termination of the review proceeding concerning Imports from Romania, 
Brazil and Sweden Is proposed to be decided by the Commission. 
Proposal for a 
COUNCIL REGULATION (EEC) 
terminating the proceeding in connection with a review of ant I-dumping 
measures concerning Imports of fibre bulIding board (hardboard) 
originating In Czechoslovakia, Poland and the USSR, confirming the 
expiry of the definitive anti-dumping duties Imposed on 
imports from Czechoslovakia and Poland, and repealing the 
defenitlve ant I-dumping duty imposed on Imports from the USSR 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, 
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on 
protection against dumped or subsidized Imports from countries not 
members of the European Economic Community1, and In particular 
Articles 14 and 15 thereof, 
Having regard to the proposal submitted by the Commission after 
consulting the Advisory Committee as provided for by the above 
Regulation, 
Whereas: 
A. PRODUCT 
The product concerned Is fibre board of a density exceeding 
0.8g/cm3 falling under CN codes 4411 11 00 and 4411 19 00. 
1 0J No L 209, 2.8.1988, p. 1. 
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B. PROCEDURE 
2. The Commission received two requests for a review of ant I-dumping 
measures, lodged by the European Confederation of Wood-working 
Industries on behalf of Community producers representing the great 
majority of Community output of hardboard. One request was lodged 
under Article 15 of Council Regulation (EEC) No 2176/84 with regard 
to the undertakings accepted by the Commission on Imports from 
Romania2, Brazil3 and certain Swedish exporters4, and alleged 
that the expiry of the measures would lead again to injury or 
threat of Injury. The other request, lodged under Article 14 of 
that Regulation, concerned the definitive anti-dumping duties 
imposed by the Council on Imports from Czechoslovakia and Poland5 
and from the USSR6 and the undertakings accepted by the 
Commission on imports from certain (I.e. three) other Swedish 
exporters7,8 and contained evidence of changed circumstances 
sufficient to Justify the need for such review. 
3. The Commission accordingly announced by a notice In the Official 
Journal of the European Communities9 the initiation of a review of 
anti-dumping measures concerning imports into the Community of 
fibre building board (hardboard) originating in Czechoslovakia, the 
USSR, Poland, Romania, Sweden and Brazil, and commenced an 
investigation which covered the period from 1 July 1987 to 31 May 
1988. 
4. The Commission officially so advised the exporters and Importers 
known to be concerned, the representatives of the exporting 
countries and the complainants, and gave the parties directly 
concerned the opportunity to make known their views In writing and 
to request a hearing. Most of the known producers and exporters 
and some Importers made their views known In writing. Most of the 
known exporters and some producers and Importers requested and were 
granted hearings. 
49, 22.2.1983, p. 6. 
47, 19.2.1983, p. 30. 
181, 25.6.1982, p. 19. 
361, 24.12.1983, p. 6. 
170, 29.6.1984, p. 68. 
46, 25.2.1986, p. 23. 
361, 24.12.1983, p. 47 
9 0J No C 165, 24.6.1988, p. 2. 2 0J No L 
3 0J No L 
4 0J No L 
5 0J No L 
6 0J No L 
7 0J No L 
8 0J No L 
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5. In December 198810 the Commission gave notice that, in accordance 
with Article 15(4) of Regulation (EEC) No 2423/88, the anti-dumping 
measures concerning Imports of hardboard from Czechoslovakia, 
Poland and two Swedish exporters (Swedeboard Vrena AB and Royal 
Board AB) would remain in force after the end of the relevant five-
year period, pending the outcome of the review being carried out 
under Article 14 of that Regulation. The relevant five-year period 
has not expired regarding both the undertaking given by the third 
Swedish exporter, Karl it AB, and the anti-dumping duty on Imports 
from the USSR. 
6. The Commission sought and verified all Information It deemed to be 
necessary for the purposes of a preliminary determination and 
carried out Investigations at the premises of the following 
companies: 
a) Community producers 
- I sore I (Boulogne), France 
- ICL SPA (Mondovi), Italy 
- Legnochlmlca Spa (Mondovi), Italy 
- Taflsa (Madrid), Spain 
- Renltex GmbH (Los.helm), Federal Republic of Germany 
- Atex Werke GmbH & Co. KG (Grafenau), Federal Republic of Germany 
- Tafinsa Ltd (Agent of Taflnsa) (Maidenhead), United Kingdom 
b) Importers 
- Portes Simon SA (Durtal), France 
- ETS Jean Huet et Fils SA (Chai I ans), France 
- Sadepan SPA (Vladana), Italy 
- Homanlt GmbH & Co. KG (Loehne), Federal Republic of Germany 
- Steinbrugge and Bernlnghausen GmbH & Co. (Bremen), Federal 
Republic of Germany 
- Svedex B.V. (Varsseveld), Netherlands 
- Bey Ieve Id B.V. (Rotterdam), Netherlands 
- TrIbomIJ B.V. (Amsterdam), Netherlands 
10 OJ No C 327, 20.12.1988, p. 8. 
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C. INJURY OR THREAT OF INJURY 
7. The protective measures under consideration were Introduced by the 
Council and only concern Imports from Czechoslovakia, Poland and 
the USSR. However, for the assessment of Injury or threat of 
Injury, it is considered appropriate to take into account also the 
imports from Romania, Sweden and Brazil, where the Commission 
accepted undertakings. The cumulation of the imports is in line 
with the Institutions' standard practice. 
8. With regard to the Injury allegedly still being caused to the 
Community Industry, the evidence available to the Commission shows 
that imports of hardboard originating in the six countries involved 
in the proceeding Increased from 208 000 tonnes in 1985 to 263 000 
tonnes In 1987 and reached 112 500 tonnes during the first five 
months of 1988. The development of these Imports, assessed In the 
light of the increase in Community consumption of hardboard over 
the same period, was such that the combined market share held by 
Imports from those exporting countries remained stable at 
about 21%. 
9. in particular, Imports from Sweden and Brazil taken together showed 
a decline In their market share from 14.3% In 1985 to 13% during 
the first five months of 1988. In terms of volume these Imports 
progressed by 15% in that period, which Is distinctly slower than 
the rise in Community consumption. 
10. Imports originating in the State-trading countries concerned 
increased over the same period faster than Community consumption, 
and consequently their combined market share rose from 6.1% to 
8.3%. It was found, however, that at least one third of the 
Imports concerned related to a specification of hardboard 
exclusively addressed to the packaging Industry In the Netherlands. 
This specification Is hardly produced by the Community Industry, so 
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that no competition for it exists. As for the remaining Imports, 
they consist mainly of hardboard directed at low-price segments of 
the market for which Community producers, under the present high 
rate of capacity utilization, produce only insignificant 
quantities. Accordingly, the impact of imports from those 
countries on the Community industry Is limited by their reduced 
degree of competition. 
11. As regards prices of the Imports from the six countries concerned, 
their comparison during the period under Investigation with prices 
of Community producers of like products did not show, In the case 
of Sweden, any margins of undercutting at all, and margins found 
for Brazil were not significant. 
As for the prices of Imports from the State-trading countries 
involved, It was found that, considering the application of the 
antI-dumping duties in force, as well as the adjustments Justified 
by differences In quality and finish of the Imported product, 
levels of undercutting were likewise not significant in the case of 
Czechoslovakia and Poland. Margins of undercutting found for the 
USSR and Romania have not significantly affected Community prices 
owing to the very small market share held by Imports from these two 
countries and their concentration in certain low-price sectors of 
the Community market. 
12. As far as the possible impact of the Imports on the situation of 
the Community producers Is concerned, account had to be taken of 
the following factors: 
a) Total Community production of hardboard during the first five 
months of 1988, extrapolated on an annual basis, amounted to 
789 000 tonnes against 651 000 tonnes in 1985, which represents 
an Increase of 21%. Over the same period, production 
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capacities, expressed in tonnes, of Community producers taken 
together Increased by 5%, and capacity utilization consequently 
also Increased by nearly 16%. These trends enabled the 
Community Industry to achieve a rate of capacity utilization of 
93% on average. 
b) Stocks held by Community producers at the end of May 1988, 
expressed In tonnes, were nearly 9% lower than at the end of 
1985. 
c) Sales by Community producers of hardboard In the Community were 
in line with the Increase In production between 1985 and the 
first five months of 1988. 
d) A comparison between the abovementloned development of 
production and sales of Community producers and that of 
Community consumption of hardboard shows that the market share 
held by Community producers remained stable at about 61%. This 
indicates that the Community industry was able to take 
advantage of the Increasing demand. 
e) With regard to profitability, the Community situation has 
improved considerably In the last three years. During this 
period the Community industry has been able to progressively 
reduce its losses and since the end of 1986 the majority of 
Community producers have once again achieved reasonable profit 
margins. 
13. In the light of the trends of the relevant economic factors 
referred to above, It appears that the situation of the Community 
has substantially improved. This Is witnessed especially by the 
good financial results and the high level of capacity utilization 
achieved by most Community producers. Under these circumstances, 
It is concluded that the Community Industry Is not at present 
suffering material Injury as a result of the Imports concerned. 
<» 
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14. In order to analyse whether the expiry of the anti-dumping measures 
In force would lead to a situation causing or threatening to cause 
material Injury to the Community industry, the Commission took Into 
consideration the probable development of volumes and prices of the 
Imported product. 
15. As previously mentioned, imports from the six countries concerned 
did not progress In terms of volume, during the last four years, 
distinctly faster than Community consumption, and consequently the 
market share held by those countries remained stable over that 
per iod. 
16. With regard to installed capacity, that of Sweden has been recently 
reduced after the closure of one of the main producers/exporters 
in that country. In respect of Brazil and the State-trading 
countries concerned, no clear Indication exists of additional 
capacities being installed in recent years. 
17. As to the likelihood that the existing spare capacities will be 
used to Increase exports to the Community, two factors should be 
considered. First, even if these countries were to Increase 
production, the magnitude of such increase would be limited, at 
least In the near future, by the already relatively high estimated 
rate of capacity utilization. Secondly, given the distribution of 
traditional exports from those countries between the Community and 
other regions, it is doubtful that such Increase in production 
would lead to significant increases in exports to the Community in 
relation to Community consumption. 
18. It follows that, after the expiry of the protective measures, the 
foreseeable development of the Imports concerned is not likely to 
have a significant Impact on the Community industry. 
Ac 
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19. Concerning prices of Imports from Sweden and Brazil, Is was found 
that the exporters have been selling their products In the 
Community at prices similar to those of Community producers and 
that they have respected and, In many cases, even exceeded the 
minimum prices of the undertakings in force. This, together with 
the high quality of Swedish and Brazilian hardboard, leads the 
Commission to assume that there Is no clear indication that prices 
for hardboard Imported from these two countries would decline and 
undercut Community producers' prices to an extent likely to cause 
material injury, If the undertakings were allowed to lapse. 
20. With regard to prices of Imports from the State-trading countries 
concerned, the expiry of the protective measures would give the 
exporters an opportunity to adjust their prices to the level 
prevailing on the Community market. Even If the exporters did not 
take full advantage of such an opportunity, whatever undercutting 
would remain should have, under present circumstances, a limited 
effect on the prices charged by Community producers. The reason for 
this is that, in addition to the fact that no sizeable Increase in 
Imports from these countries Is expected, a major proportion of 
these Imports does not directly compete with Community production. 
21. In view of the above considerations, It must be assumed that, 
following the expiry of the ant I-dumping measures In force, a 
situation in which the Imports concerned would cause or threaten to 
cause material Injury to the Community Industry is not, at present, 
clearly foreseeable. 
AA 
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D. DUMPING 
22. Given the above findings with respect to injury and threat of 
Injury, the Commission considered It unnecessary to further 
investigate the question of dumping with regard to the imports 
concerned. 
E. TERMINATION OF REVIEW PROCEEDING 
23. In these circumstances, therefore, the review proceeding concerning 
imports of hardboard originating in Czechoslovakia, Poland and the 
USSR, should be terminated without the Imposition of further 
protective measures. The antI-dumping measures concerning the USSR 
should be repealed and those In respect of Czechoslovakia and 
Poland should be allowed to lapse. 
24. No objections to this course of action were raised In the Advisory 
Committee. 
25. The complainants were Informed of the considerations and main facts 
on the basis of which the Commission intended to terminate the 
proceeding. 
26. Termination of the review proceeding concerning Imports of 
hardboard originating In Romania, Brazil and Sweden is decided by 
Commission Decision (89/ /EEC)*11), 
(11) OJ No L ... 
Az 
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HAS ADOPTED THIS REGULATION: 
Article 1 
1. The review procedure of the ant I-dumping measures concerning 
imports of fibre building board (hardboard) falling under CN codes 
4411 11 00 and 4411 19 00, originating In Czechoslovakia, Poland 
and the USSR, Is hereby terminated. 
2. The definitive ant I-dumping duties currently in force concerning 
Imports of fibre building board (hardboard) originating In 
Czechoslovakia and Poland shall lapse. 
3. The definitive ant I-dumping duty currently in force concerning 
Imports of fibre building board (hardboard) originating in the USSR 
Is repealed. 
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 Brussele 
For the CounciI 
A3 
Commission of the European Communities 
COM(89) 291 final 
Proposal for a 
COUNCIL REGULATION (EEC) 
terminating the proceeding in connection with a review of anti-dumping 
measures concerning imports of fibre building board (hardboard) originat­
ing in Czechoslovakia, Poland and the USSR, confirming the expiry of the 
definitive anti-dumping duties imposed on imports from Czechoslovakia 
and Poland, and repealing the definitive anti-dumping duty imposed on 
imports from the USSR 
(submitted to the Council by the Commission) 
9.6.1989 
Office for Official Publications of the European Communities 
L - 2985 Luxembourg 
Series: DOCUMENTS 
1989 - 13 pp. - Format: 21.0 x 29.7 cm 
EN 
ISSN 0254-1475 
ISBN 92-77-50757-8 
Catalogue number: CB-CO-89-226-EN-C 
ISSN 0254-1475 
COM(89) 291 final 
DOCUMENTS 
Proposal for a 
COUNCIL REGULATION (EEC) 
terminating the proceeding in connection with a 
review of anti-dumping measures concerning imports 
of fibre building board (hardboard) originating in 
Czechoslovakia, Poland and the USSR, confirming the 
expiry of the definitive anti-dumping duties imposed 
on imports from Czechoslovakia and Poland, and 
repealing the definitive anti-dumping duty imposed on 
imports from the USSR 
(submitted to the Council by the Commission) 
11 
Catalogue number: CB-CO-89-226-EN-C 
ISBN 92-77-50757-8 9.6.1989 
€ 
COMMISSION OF THE EUROPEAN COMMUNITIES