COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 18 final 
Brussels. 03.02.1994 
Proposal for a 
COUNCIL REGULATION (EC) 
imposing a definitive anti-dumping duty on imports of ferro-silicon originating 
in South Africa and in the People's Republic of China 
(presented by the Commission) 
IXPLANATORY MEMORANDUM 
1 By Regulation (EEC) No 2581/93, published in OJ No L 237 of 22 September 1993, 
the Commission imposed a provisional anti-dumping duty on imports of ferrosilicon 
originating in South Africa and the People's Republic of China. 
2. The provisional anti-dumping duty was extended for a maximum period of two months 
by Council Regulation (EC) No 3371/93 In the meantime, the Commission has 
completed its investigation for the determination of definitive measures. 
3. For the purpose of definitive findings, normal value and export price were established 
on the same methods as those used in the provisional determination of dumping. No 
new calculation adjustment was submitted by the interested parties. The comparison 
between normal value and export prices to the Community showed definitive dumping 
margins for the South African and Chinese producers ranging from 34.7% to 49.7%. 
4. As far as injury is concerned, cumulation of imports was questioned by South African 
producers. 
The effect of the imports should be analysed cumulatively, since the exports originating 
in South Africa and the People's Republic of China amounted to significant quantities 
of the like product, competed with the Community production and with each other and 
since the exporter's market behaviour was similar. 
No other facts relating to injury were put forward. 
5. With respect to Community interest, no new arguments other than those set out in the 
Commission Regulation were submitted. 
6. Provisional measures took the form of anti-dumping duties: these were imposed for all 
producers at the level of the dumping margins established since the level to remove 
injury was higher. No new arguments were put forward to contradict this approach. 
One South African company proposed an undertaking, which was not accepted because 
in previous cases undertakings had shown to be not appropriate. 
Accordingly, the following duties should be imposed: 
South Africa 47.4% 
Highveld-Rand Carbide 34.7% 
People's Republic of China 49.7%. 
In the case of South African companies which failed to cooperate, a duty based on the 
highest dumping margin found is proposed in order to avoid a bonus for non-
cooperation being constituted and to prevent circumvention of the anti-dumping 
Proposal for a 
COUNCIL REGULATION (EC) 
imposing a definitive anti-dumping duty on imports of ferro-silicon originating 
in South Africa and in the People's Republic of China 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European 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 
Community03, and in particular Article 12 thereof, 
Having regard to the proposal presented by the Commission after consultation within the 
Advisory Committee, 
Whereas: 
A. PROVISIONAL MEASURES 
( 1 ) By Regulation (EEC) No 2581 /93(2), the Commission imposed provisional anti-dumping 
duties on imports into the Community of ferro-silicon originating in South Africa and 
the People's Republic of China and falling within CN codes 7202 2110, 7202 21 90 and 
ex 7202 29 00. 
By Regulation (EC) No 337l/93(,), the Council extended the validity of these duties for 
a period not exceeding two months. 
B. SUBSEQUENT PROCEDURE 
(2) Following the imposition of the provisional anti-dumping duty, one South African 
company requested and was granted an opportunity to be heard by the Commission and 
made its views known in writing. 
(3) The Commission continued to seek and verify all information it deemed necessary for 
its definitive findings. The parties were informed of the essential facts and 
considerations on the basis of which it was intended to recommend the imposition of 
definitive anti-dumping duties and the definitive collection of the amounts secured by 
(i) 
(3) OJ No L 209, 2.8.1988, p. I. 
OJ No L 237, 22.9.1993, p. 2. 
OJ No L 303, 10.12 1993, p I 
considerations on the basis of which it was intended to recommend the imposition of 
definitive anti-dumping duties and the definitive collection of the amounts secured by 
way of a provisional duty. They were also granted a period within which to make 
representations subsequent to these disclosures. 
C DUMPING 
1. Normal value 
(4) For the purpose of definitive findings, normal value was established on the basis of the 
same methods as those used in the provisional determination of dumping. No new 
calculation adjustment was presented by the interested parties. 
2. Export prices 
(5) The method used to establish export prices, as set out in recitals (18) to (20) of 
Regulation (EEC) No 2581/93, is hereby confirmed, as no comments in this respect 
were made by interested parties. 
3. Comparison 
(6) The findings and conclusions set out in recital (21 ) of Regulation (EEC) No 2581/93 are 
hereby confirmed. 
4. Dumping margins 
(7) The definitive examination of the facts showed the existence of dumping in respect of 
imports of the product concerned originating in South Africa and the People's Republic 
of China. 
(8) The weighted average dumping margins definitively established for each South African 
producer concerned and expressed as a percentage of the free-at-Community-frontier 
price of imports, duty unpaid, were as follows: 
Highveld Rand Carbide 34.7% 
Samancor 47.4%. 
(9) The weighted average dumping margin definitively established for the People's Republic 
of China and expressed as a percentage of the free-at-Community-frontier price of 
imports, duty unpaid, was 49.7%. 
D. INJURY 
(10) Two South African producers questioned the Commission's decision to cumulate 
imports from their companies with the other imports from South Africa and the People's 
Republic of China. 
It is hereby confirmed that the effects of the imports should be analysed cumulative^, 
since the exports originating in each of these countries amounted to significant quanta '. 
of the like product, since they competed with the Community production and with each 
other, and since the exporters' market behaviour was similar. 
(11) The Commission concluded in its provisional findings, as set out in recitals (26) to (40) 
of Regulation (EEC) No 2581/93, that the Community industry had suffered material 
injury. No new facts concerning these findings were subsequently put forward in this 
connection. 
This conclusion is therefore confirmed. 
E. COMMUNITY INTEREST 
(12) In the Commission's provisional findings on imports of ferro-silicon originating in South 
Africa and the People's Republic of China, as set out in recitals (41) to (48) of 
Regulation (EEC) No 2581/93, the interests of the Community industry, of the 
consumers and of other industries and activities concerned have been considered. 
No new arguments were put forward in this connection. 
(13) Therefore, the findings of Regulation (EEC) No 2581/93 in this respect are confirmed. 
F. UNDERTAKINGS 
(14) One South African exporter proposed that any measures should take the form of either 
an undertaking or a minimum price duty. The monitoring of such a price undertaking 
has been shown in previous cases to be very complex and difficult for a product like 
ferro-silicon which is imported into the Community in forms containing different 
percentages of silicon which should be reflected in distinct price levels. The differences 
are, however, not discernible without technical analysis thus making any such 
undertaking potentially ineffective. 
Therefore, undertakings, or indeed minimum price duties which give rise to the same 
problems, can no longer be considered as an appropriate remedy for a product like ferro-
silicon, as set out in recital (88) of Council Regulation (EC) No 3359/93(4). Furthermore, 
imports from other countries concerned by this product, namely Norway, Sweden, 
Iceland, Kazakhstan, Russia, Ukraine, Brazil, Venezuela and China, as well as from the 
other South African producers, are subject to ad valorem duties. 
(15) Given the above, it is concluded that measures should be imposed in the form of 
definitive ad valorem anti-dumping duties. 
(4) OJ No L 302, 9.12.1993, p I 
G. DUTY 
(16) Provisional measures took the form of anti-dumping duties; these were imposed for both 
South Africa and China at the level of the dumping margins found, since the level 
necessary to remove injury was higher, as set out in recital (50) of Regulation (EEC) 
No 2581/93. 
No new arguments were put forward to contradict this approach. Therefore, duties 
should be established at the level of the dumping margins definitively determined in 
recitals (8) and (9) of this Regulation. 
(17) In the case of South African firms which failed to cooperate in the investigation, the 
Commission considered in recital (52) of Regulation (EEC) No 2581/93 that the duty 
should be established on the basis of the facts available, in accordance with 
Article 7(7)(b) of Regulation (EEC) No 2423/88. In order not to reward non-cooperation, 
it was considered that the most reasonable facts were those established during the 
investigation and that there was no reason to believe that any duty lower than that 
corresponding to the highest margin of dumping found would be appropriate to take 
account of the effect of dumping by non-cooperating companies in South Africa. 
(18) Accordingly, the following duties should be imposed: 
People's Republic of China 49.7% 
South Africa, except Highveld - Rand Carbide 47.4% 
Highveld - Rand Carbide 34.7%. 
H. COLLECTION OF THE PROVISIONAL DUTIES 
(19) In view of the dumping margins established, the injury caused to the Community 
industry and of the latter's precarious situation, it is considerered necessary that the 
amounts secured by way of the provisional anti-dumping duty for all companies and the 
People's Republic of China should be definitively collected, 
HAS ADOPTED THIS REGULATION: 
Article 1 
A definitive anti-dumping duty is hereby imposed on imports of ferro-silicon containing 
between 20 and 96% of silicon by weight falling within CN codes 7202 21 10, 
7202 21 90 and ex 7202 29 00 (Taric code 7202 29 00*11) and originating in South 
Africa and in the People's Republic of China. 
The rate of duty applicable to the net free-at-Community-frontier price, not cleared 
through customs, shall be as follows: 
49.7% for ferro-silicon originating in the People's Republic of China; 
47.4% for ferro-silicon originating in South Africa (additional Taric code 8733) 
with the exception of that produced by the company referred to in the third indent, 
34.7% for ferro-silicon originating in South Africa and produced by Rand Carbide, 
Division of Highveld Steel and Vanadium Corp. Ltd., Witbank (additional Taric 
code 8732). 
Article 2 
The amounts secured by way of the provisional anti-dumping duty pursuant to Regulation 
(EEC) No 2581/93 shall be definitively collected in full. 
Article 3 
This Regulation shall enter into force on the day following that of 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 Brussels, For the Council 
The President 
ISSN 0254-1475 
COM(94) 18 final 
DOCUMENTS 
EN 11 02 
Catalogue number : CB-CO-94-020-EN-C 
ISBN 92-77-64602-0 
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