ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)779
Vol.1979/0256

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)779 final
Brussels .31stDecember 1979
PROPOSAL FOR ACOUNCIL REGULATION (EEC )
IMPOSING ADEFINITIVE ANTI-DUMPING DUTY ON
LITHIUM HYDROXIDE ORIGINATING INTHE
UNITED STATES OFAMERICA AND THE SOVIET UNION
(proposed bytheCommission tothe Council )
g?V M
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«i't
COM (79)779 final

EXPLANATORY MEMORANDUM
TheCommission,byRegulation (EEC)N°2391/79of26October1979,imposed
aprovisional anti-dumping dutyonlithiumhydroxideoriginating inthe
UnitedStatesofAmericaandtheSovietUnion.ThisRegulation applies
untiltheentryintoforceofanActoftheCounciladoptingdefinitive
measuresor,atthelatest,untiltheexpiryofaperiodofthreemonths
beginning on31October1979.
AmonthbeforetheexpiryofthistimelimittheCommission,pursuantto
(1)theanti-dumping Regulation (EEC) ,shouldsubmittothe
Councilaproposalrelatingtotheadoptionofdefinitive measures.
Sincetheimposition oftheduty,theCommission'sserviceshavecontinued
theirexamination ofthefactsinco-operation withtheMemberStates.
Thisexaminatipfj hasenabledtheCommissiontogatherfurtherinformation,
supported byproofofthe"normalvalue"ofthisproductandofthe
AmericanandRussianexportprices. ..
Thefactsasfinallyestablished showthatthereisdumpingandinjury
andthattheamountssecuredbywayofprovisional dutyshouldbe
definitively collected.Thesefactsalsoshowthatthenormalvalue
established forthepurposesoftheprovisional dutyhassinceincreased
andthisincreasemustbetakenintoaccountwhendetermining the
definitive duty.
Inthesecircumstances ,theCommission submitstheattachedproposalfor
aCouncilRegulation imposing adefinitive anti-dumping dutyonlithium
hydroxideoriginating intheUnitedStatesofAmericaandtheSovietUnion
andprovidingforthedefinitivecollection oftheamountssecuredby
wayofprovisional duty.
(1)Tobeinsertedoncenewregulationispublished (formerRegulation
(EEC)459/68).

PROPOSAL FOR
COUNCIL REGULATION (EEC )
imposing adefinitive anti-dumping duty onLithium hydroxide originating
inthe United States ofAmerica and the Soviet Union
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
(*)Having regard to -Council Regulation (EEC )N° of
onprotection against dumped orsubsidized imports from countries which are
(1)not members ofthe European Economic Community ,
Having regard totheproposal submitted bytheCommission after consultation
within theAdvisory Committee "setupunder Article 6ofRegulation (EEC )
Whereas in ;February 1979 theCommission received acomplaint submitted by
CEFIC ,theEuropean Council ofChemical Industry Federations ,onbehalf
ofMetal Igesel Ischaft AG,Frankfurt ,thesole Community producer of
lithium hydroxide ,setting outevidence astotheexistence ofdumping of
the like product originating intheUnited States ofAmerica andthe
Soviet Union and ofmaterial injury resulting therefrom ;
Whereas ,since the information received indicated that the complaint was
admissible andthat defensive measures against dumping might benecessary ,
theCommission officially notified the importers andexporters known to .
beconcerned ,andpublished intheOfficial Journal oftheEuropean
Communities of19May 1979 anotice ofthe initiation ofananti-dumping
procedure concerning imports oflithium hydroxide originating inthe
United States ofAmerica andtheSoviet Union^;
(*)NBNewCounci I"regulation notyetpublished .
(1)OJN°L
(2)OJN°C126,19.05.1979 ,p. 2

Whereas,forthepurposesofapreliminarydetermination ofthedumpingmargin
andofinjury,theCommission madeanonthespotinvestigation ofthetwo
Americanproducers,FooteMineralCompany,Exton,Pennsylvania,andLithium -
CorporationofAmerica,Gastonia^NorthCarolina,oftheCommunityproducer,
andofaCommunityimporterwhoseoperationsrequiredsimilarinvestigation ;
whereas'anonthespotinvestigation ofanotherimporterprovedimpossible
owingtohisrefusaltopermitit;.
Whereas,forthepreliminaryexaminationofdumpingbyAmericanproducers,the
CommissioncomparedtheirexportpricestotheCommunitywiththoserulingon
theAmericanmarket;
Whereasweightedaverageswereusedforthesecomparisons,whichweremadeat
theex-factorylevelforsalesovertheperiod1January1979to*30April1979,
accountbeingtaken,-insofarasthiswasrequested,ofdifferences inthecon­
ditionsofsalehavingadirectrelationship withthesalesunderconsideration ,
thatistosaythoserelatingtotransportcosts'andsellingexpenses;whereas
theamountofthesellingexpenseswasdetermined byreferencetothecostsin­
*curredbytheseller;whereas,intheabsenceofsufficientevidenceinsupport
ofLithiumCorporation'sclaimthattherewereabsolutely nosellingexpenses
> *
onexportstotheCommunity,thebreakdownofthesecostswasbasedontheavail
ableaccountingdata,allocatedproportionately totheturnoverforeachproduct
andmarketunderconsideration ;whereastheexporterinquestionrequestedin
additionasupplementary adjustmen%>for certainoverheadsandadministrative
expenses;whereas,intheabsenceofsufficientproofastothedirectrelation
shipoftheseoverheadswiththesalesunderconsideration,theCommission was
notabletotakethisrequestintoaccount; "*
Whereas,whendetermining theexistenceofdumpingonimportsfromtheSoviet
Union,theCommission hadtotakeaccountofthefactthattheSovietUnionis
anon-market economycountry;
m
Whereas,forthisreason,-the-Commissionhasbaseditspreliminary dumping
calculations ontheprices.atwhichthelikeproductissoldforconsumption
onthedomesticmarketofamarketeconomythirdcountry;
Whereasacomparisonwithpricesatwhichthelikeproductissoldforcon­
sumptiononthedomesticmarketoftheUnited-StatesofAmerica -adjustedto
takeinitoaccountdifferences inconditionsandcircumstances ofsaleappeared
tobeappropriate andnotunreasonable sincetheUnitedStatesistheonly
marketeconomynon-membercountryproducing^and exportingthisproductin
substantialquantities; - •

-3-
Whereas,withregardtoinjurytotheindustryconcerned,theevidenceduringthepreliminary examinationavailabletotheCommission/snowedthatimportsintotheCommunityof
lithiumhydroxideoriginating intheUnitedStatesofAmericaandthe
SovietUnionhadincreased from988tonnesin1976to1237tonnesin
1978;
whereastheimportsintotheCommunityoftheproductinquestionreacheda
marketshareof58%in1976and62%in1978andwereconsequently havinga
considerable effect; ■
'WhereasthepricesoftheseimportsontheCommunitymarketshadbeen
extremelylow,thusexercising adepressiveeffect ,ontheCommunity
producer'sprices,obligingittosell.atpricesbelowitscostsof
production ; • , .
Whereasthisdevelopment hadtakenplacetothedetrimentofthisproducer,
placingitinanextremelydifficultsituationandcausingitheavy
lossesonthisproduct;whereas,intheabsenceofdefensivemeasures,the
cessationofthislineofproductionwasenvisaged,whichwoulclfinvolved
areductioninpersonnel;
, considered tobe
Whereasthedumpedimportswere'manifestlytheprincipal causeofthe
difficulties described above;
-€2
this ..
Whereas,since/preliminary examination ofthemattershowedthattherewas
dumping,thattherewassufficient evidenceofinjury,andthatthe
interestsoftheCommunitycalledforimmediateintervention ,the
(1)Commission,byRegulation (EEC)N°2391/79,imposedaprovisional anti-
dumpingdutyonlithiumhydroxideoriginating intheUnitedStatesof
AmericaandtheSovietUnion; •
Whereas,inthecourseofthesubsequent examination ofthematter,>
completedaftertheimposition oftheprovisional anti-dumping duty,the
Commission gaveinterestedpartiestheopportunity tomakeknowntheir
• ,,.... .,.who.so.requested ,.,viewsinwriting,heardtheinterestedparties'anagavetheparties
directlyconcerned^?he e§ppo£funityorallytodeveloptheirviews;
(1)OJN°L274,31.10.1979,p.26

Whereasduringthesubsequentexaminationitwasdeterminedthatthe
domesticpriceintheUnitedStatesofAmericaonwhich:thedetermination
ofnormalvalueisbasedhasincreasedby9.3%sincethedateofthe
preliminary determination ofthedumpingmargin;whereasinconsequence,.
forthedefinitivedetermination ,itisnecessarytoadjustthenormalvalue
onwhichtheprovisional dutywasbasedbythisamountinordertotake
accountof,theincreaseinthedomesticUSprice; 1-
Whereas^with regardtoalloftheotherelementsaffectingthedumping
calculations,nonewinformation wasreceivednorfurtherarguments
advanced "whichwouldhavealteredthecalculations ;whereasconsequently
thecurrentdumpingmarginsare9.6%forLithiumCorporation ofAmerica,
6.8%forFooteMineralCompanyand8.9%forRussianexports; -
Whereasinthecourseofthesubsequentexaminationofinjuryitwasdetermined
thatimportsintotheCommunityoflithiumhydroxideoriginating inthe
/
UnitedStatesofAmericaandtheSovietUnionhadreachedalevelof
632tonnesduringthefirstsixmonthsof.1979;whereastheimports-
concernedreachedamarketshareof65%duringthesameperiodandare
consequently havinganevengreatereffectonthemarketthanthat
determinedduringthepreliminary examination; '
V ■; •
WhereasthepricesoftheseimportsintotheCommunitycontinuetoexercise
adepressiveeffectontheCommunityproducer'sprices,obligingitto*
continuetosellatpricesbelowitscostsofproduction;•'
Whereas,withregardtoalltheotherelementsaffectingthedetermination of
injury,nonewinformation wasreceivednor.furtherargumentsadvanced
whichcouldhavealteredthatdetermination ;
Whereas,therefore,thefactsasfinallyestablished showthat,due
consideration havingbeengiventotheotherfactorshavingabearingon
thesituationofthisindustry,as,forexample,thedeclineofexportsto
countriesoutsidetheCommunity/thedumpedimportsarecausingand
threateningtocausematerialinjurytotheCommunityproductionconcerned;

-5-
Whereas/inthesecircumstances ,protectionoftheCommunity'sinterests
callsforthedefinitivecollection oftheamountssecuredbywayof
provisional dutyinrespectoflithiumhydroxideoriginating inthe
UnitedStatesofAmericaandtheSovietUnion-andfortheimpositionofa
definitive anti-dumping duty;whereastheamountofthisdutyshould
correspondtotheamountbywhichimportpricesintotheCommunityfall-
belowthelowestnormalvaluefortheexportersinvolvedadjustedtoa
free-Community -frontierbasis;
Whereas,inordertoavoidevasionoftheanti-dumping duty,itisnecessary
toprovidethatwherelithiumhydroxideisnotenteredforconsumption by
thefirstpurchaser -intheCommunitythereisanalternative procedurefor
thecalculation oftheduty;
WhereasoneoftheAmericanexporters,FooteMineralCompany,voluntarily
undertook,priortotheimpositionoftheprovisional duty,toincreaseits
pricestolevelswhichwereconsideredsatisfactory ;whereasthisunder­
takingwasacceptedbytheCommission,whichaccordingly decidedto-
terminatetheprocedureconcerningthiscompanyandtoexcludeitfrom
theapplication oftheprovisional duty;whereasthissamecompanyhasmeanwhile
offeredtobringitsundertaking intolinewiththelatest .pricelevelon
theAmericanmarket;whereasthisnewundertaking hasbeenacceptedbythe
Commission andconsequently thiscompanyremainsexcludedfromthe
application oftheduty,
HASADOPTEDTHISREGULATION :
Article 1
1.Adefinitive anti-dumping dutyisherebyimposedonlithiumhydroxide
fallingwithinCommonCustomsTariffsubheading 28.28Bandcorresponding
toNIMEXEcode28.28-10,originating intheUnitedStatesofAmericaand
theSovietUnion.Thisdutyshallnotapplytolithiumhydroxide
manufactured andexportedbyFooteMineralCompany,USA.
Theprovisionsinforceconcerning customs-dutiesshallapplytothis
duty..

-6-
2.Withoutprejudicetoparagraph 5belowtheamountofthisdutyshall
t
correspondtoth^differencebetweenthenormalvalueasdefinedin
paragraph 3andthefree-Community-ffontierprice,beforeduty,tothe
firstpurchaser.
3.ForthepurposesofthisRegulation,thenormalvalueoflithium
hydroxideoriginatingintheUnitedStatesofAmericaandtheSovietUnion,
adjustedtoafree-Community frontierbasis,beforeduty,shallbe.
US21.59perlb.
4.Theadjustednormalvalueasreferredtointheprecedingparagraphshallbe
netiftheconditions *ofsaleprovideforpaymentwithin30daysfromtheendof
themonthofdelivery;itshallbeincreasedby1%foreachmonthbywhichthe
periodforpaymentisincreasedandre.ducedby1%foreachmonthbywhichthat
periodisreduced.,, -
«- *
•»
5.a)Wheretheproductdefinedinparagraph 1aboveisnotenteredfor
consumption bythefirstpurchaserintheCommunity,thedefinitive anti-
A . ,
dumpingdutyshallbeatthefollowingrates:
-9.6%forimportsoriginating in"theUnitedStatesofAmerica,.
-8.9%forimportsoriginating intheSovietUnion.
Theseratesshallbe'appliedtothepurchasepriceofthepurchaser •
concerned,customsdutiesnotincluded.
b)Wherethedeclarant canprovidesatisfactory prooftothecompetent
customsauthorities thatthenormalvalueasdefinedinparagraph 3above
eitherislowerthanthepricetothefirstpurchaserintheCommunitybyless
than9.6%inthecaseofimportsfromtheUnitedStatesor8.9%inthecaseof
importsfromtheSovietUnion,orexceedsthepricetothefirstpurchaserinthe
Communitybylessthan9.6%,inthecaseofimportsfromtheUnitedStatesor8.9%
inthecaseofimportsfromtheSovietUnion,theamountofdutyshallbelimited
tothedifference calculated onthislesseramount.

Article2
Theamountssecuredbywayofprovisional dutyunderRegulation (EEC)
N°2391/79shallbedefinitively collected.
Article3 '
ThisRegulationshallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropeanCommunities .
.1
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels/ FortheCouncil
ThePresident