COMVIISSION OF THE EUROPEAN COMVIUNITIES 
C0MC91) 312 final 
Brussels, 7 August 1991 
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Proposal for a 
COUNCIL REGULATION (EEC) 
ameMing a definitive anti-dumping duty following a partial review 
of anti-dumpiig measures oorrerning inports of urea originating 
in Venezuela and terminatir^ the review of anti-dumping measures 
ooirerniig imports of urea originating in Trinidad and Tobago 
(presented by the Commission) 
•*&::, 
EXPLANATORY MEMORANDUM 
concerning the Council Regulation amending a definitive anti-dumping duty 
following a partial review of anti-dumping measures concerning imports of 
urea originating in Venezuela and terminating the review of anti-dumping 
measures concerning imports of urea originating in Trinidad and Tobago. 
I. PROCEEDING 
In a notice published in the Official Journal of the European 
Communities,1 the Commission announced the opening of an 
investigation to review anti-dumping measures imposed on imports of 
urea originating in Trinidad and Tobago and Venezuela by Council 
Regulation (EEC) No 450/892 and Commission Decision 
NO 89/143/EEC.3 
The requests for a review were based on Article 14 of Regulation 
(EEC) No 2423/88 concerning changes of circumstances. As regards 
Trinidad and Tobago, the alleged change of circumstances concerned 
a fall in production costs and a substantial increase in the price 
of exports to the Community, which, it was claimed, had put an end 
to dumping. The change of circumstances alleged by Venezuela 
concerned a change in the official exchange rate used by the 
Commission in the previous proceeding to establish the dumping 
margin. 
1 OJ No C 55, 2.3.1991, p. 4. 
2 OJ No L 52, 24.2.1989, p. 1. 
3 OJ No L 52, 24.2.1989, p. 37 
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11 • TRINIDAD AND TOBAGO 
a) Dumping 
A transaction-by-transaction comparison of the constructed normal 
value and export prices to the Community led to the conclusion that 
dumping had ceased. 
b) Injury 
In the absence of dumping, the Commission did not consider it 
worthwhile to review the question of injury. 
c) Conclusion 
Given the absence of a duming margin and the honesty of the 
exporter involved, the Trinidad and Tobago Urea Company Ltd (TTUC), 
the Commission is of the opinion that the anti-dumping measures 
currently imposed on this country should be abolished. 
III. VENEZUELA 
a) Dumping 
As there had been no exports to the Community, the new exchange 
rate cited as a change of circmustances had not been applied, and 
it was therefore not possible to make a comparison with the new 
normal value established in the course of the investigation. 
b) Injury 
As regains the injury, the Venezuelan exporters' arguments that 
since there had been no exports to the Community, the injury to 
Community producers had been eliminated and that Community 
producers had substantially increased their prices were not 
considered sufficiently relevant by the Commission. 
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The Commission considers that the suspension of exports can be 
interpreted neither as an indication of the elimination of the 
injury nor as a change of circumstances justifying a review of the 
injury. The alleged increase in Community producers' prices is held 
to be a normal consequence of the imposition of anti-dumping 
measures. 
o) Conclusion 
Given the above, the Commission considered that in the absence of 
exports to the Community, it was unable to gauge the accuracy of 
the argument put forward by the Venezuelan exporters concerning the 
elimination of dumping as a result of the application of the new 
exchange rate. Consequently, the Commission felt that the fairest 
solution for the exporters involved, Nitroven and Pequiven, would 
be to abolish the current ad valorem anti-dumping duty of 21.5%, 
replacing it with a variable duty based on the exporters' new 
normal value, as established during the course of this proceeding. 
Consequently, the Commission submits a proposal for a Council 
Regulation: 
- terminating the review of the anti-dumping measures imposed on 
imports of urea originating in Trinidad and Tobago and cancelling 
the undertaking imposed by Council Regulation (EEC) No 3339/87 and 
confirmed by Commission Decision No 89/143/EEC of 21 February 1989; 
- Imposing a variable definitive anti-dumping duty on imports of 
urea originating in Venezuela exported by Nitroven and Pequiven, 
and retaining the ad valorem anti-dumping duty on other imports of 
urea originating in Venezuela. 
COUNCIL KBGOLATTCN (EEC) No 
Of 
amending a definitive anti-dumping duty following a partial review 
of anti-dumping measures concerning imports of urea originating 
in Venezuela and terminating the review of anti-dumping measures 
concerning Imports of urea originating in Trinidad and Tobago 
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 Ccaranunity,1 and in particular Articles 9, 12 and 
14 thereof, 
Having regard to the proposal from the Commission, submitted after 
consultations within the Advisory Committee as provided for by the above 
Regulation, 
Whereas: 
A. PROCEDURE 
(1) In November 1990, pursuant to Article 14 of Council Regulation 
(EEC) No 2423/88, the Commission received a request for a review of 
the anti-dumping measures imposed on imports of urea originating in 
Trinidad and Tobago and Venezuela by Council Regulation (EEC) 
No 450/892 and Commission Decision No 89/143/EEC.3 
1 OJ No L 209, 2.8.1988, p. 1. 
2 OJ No L 52, 24.2.1989, p. 1. 
3 OJ No L 52, 24.2.1989, p. 37. 
(2) With regard to Trinidad and Tobago, this request was made by the 
Trinidad and Tobago Urea Company Ltd, the successor to the National 
Energy Corporation of Trinidad and Tobago Ltd, which had offered an 
undertaking in connection with the abovementionned Decision which 
had been accepted. The review was requested on the ground of a 
change in circumstances, resulting from the fact that a fall in 
production costs and a substantial increase in the prices of 
exports to the Community had put an end to any dumping. 
(3) With regard to Venezuela, the request made by Venezolana del 
Nitrogeno CA (Nitroven) and Petroquimica de Venezuela SA (Pequiven) 
for a review of the definitive anti-dumping duty of 21.5% Imposed 
by Council Regulation (EEC) No 450/89 was based on the change in 
circumstances brought about by an adjustment on 14 March 1989 of 
the official rate of exchange which had been used by the Commission 
to compare the normal value and the export price in order to 
calculate the dumping margin. According to these companies, the 
application of the new exchange rate would show that there was no 
dumping. 
SUBSEQUENT PROCESSING 
(4) Having concluded that the requests contained sufficient evidence of 
a change in circumstances, the Commission announced its decision to 
open an investigation in a Notice of review of anti-dumping 
measures concerning Imports of urea originating in Trinidad and 
Tobago or in Venezuela published in the Official Journal of the 
European Communities.4 
(5) The Commission officially notified the producers/exporters directly 
involved and the representatives of the exporting countries. 
4 OJ No C 55, 2.3.1991, p. 4. 
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(6) The Commission collected and verified all information it deemed 
necessary to enable it to establish the facts and carried out 
checks at the premises of the exporting companies involved, namely: 
- Trinidad & Tobago Urea Co Ltd (TTUC), Port of Spain, Trinidad 
- Petroqubnica de Venezuela SA (Pequiven), Caracas, Venezuela 
- Venezolana del Nitrogeno CA (Nitroven), Caracas, Venezuela 
- Palmaven SA, Caracas, Venezuela 
(7) The investigation of dumping as provided for in Article 7 paragraph 
1 point c) of Council Regulation (EEC) No 2423/88 covered the 
period from 1 January 1990 to 31 December 1990. 
C. PRODUCT 
(8) The product in question is a nitrogen compound whose chemical 
formula is 00 (NH2)2. It is produced synthetically from a 
reaction between ammonia and carbonic acid and comprises 
approxijnately 45% nitrogen. Urea is sold in prilled form (Trinidad 
and Tobago), granular form (Venezuela) or liquid form. It is mainly 
used as fertilizer. 
Urea falls within CN codes 3102 10 10 and 3102 10 99. 
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D. DUMPING REVIEW 
I. TRINIDAD AND TOBAGO 
a) Normal value 
(9) As TTUC's average urea sales price on its domestic market was lower 
than the production cost during the period of the investigation, 
the constructed normal value was used, in accordance with 
Article 2(3)(b)(ii) of Council Regulation (EEC) No 2423/88. 
(10) The constructed normal value was calculated by adding a profit 
margin of 7% to the cost of production. This margin was held to be 
reasonable, given that in the current economic climate, it 
represents the minimum necessary to allow urea producers to run 
their plants under normal operating conditions while producing an 
acceptable return on capital employed and securing the investment 
financing required to continue operating at a profit. 
b) Export prices 
(11) Export prices were established on the basis of the prices actually 
paid or payable for the product sold for export to the Community, 
in accordance with Article 2(8) (a) of Regulation (EBC) No 2423/88. 
c) Comparison 
(12) The constructed normal value was compared, transaction by 
transaction, with export prices at the ex-factory stage. 
In accordance with Article 2(10) of Regulation (EEC) No 2423/88, 
the Commission made due allowance in the form of adjustments for 
differences affecting price comparability, such as transport, 
insurance and handling charges, credit terms, commissions and 
ancillary costs. 
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d) Anti-dumping margin 
(13) An examination of the above facts showed that no dumping was taking 
place. 
II- VENEZUELA 
a) Normal value 
(14) As urea is sold on the domestic Venezuelan market at prices fixed 
by government decree that are lower than the cost of production, 
the constructed normal value was used, in accordance with 
Article 2(3)(b)(ii) of Regulation (EEC) No 2423/88. 
(15) The constructed normal value was calculated by adding a profit 
margin of 7% to the cost of production. This margin was held to be 
reasonable, given that in the current economic climate, it 
represents the minimum necessary to allow urea producers to run 
their plants under normal operating conditions while producing an 
acceptable return on capital employed and securing the investment 
financing required to continue operating at a profit. 
k) Export prices 
(16) No urea originating in Venezuela was exported to the Community 
during the investigation period. 
c) Comparison 
(17) Under these circumstances, it was not possible to compare the 
normal value and the export price. 
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E. CONCLUSION 
I. TERMINATION OF THE REVIEW AS REGARDS TRINIDAD AND T0BM3O 
(18) Given that there is no evidence of dumping and in view of the 
behaviour of the exporter involved, which has generally respected 
its undertaking and has also substantially increased the prices of 
its exports to the Community, the Council is of the opinion that 
the anti-dumping measures currently Ijonposed on this country should 
be lifted. 
(19) Under these circumstances, the Council considers that the review of 
the anti-dumping measures concerning iirports of urea originating in 
Trinidad and Tobago should be terminated. 
(20) This conclusion has not met with any objections from the anti­
dumping committee. 
H. AMENDMENT OF THE DEFINITIVE DUTIES AS REGARDS VBJKZUKLA 
(21) As regards Venezuela, in the absence of any exports to the 
Ccramunity it is not possible to verify the accuracy of the argument 
put forward by the exporters claiming that the application of the 
new official exchange rate has put an end to dumping. Consequently, 
the fairest solution would appear to be to abolish the ad valorem 
duty of 21.5% currently in force, replacing it with a variable duty 
based on the new normal value for the exporters, as established in 
the course of the present procceeding. 
(22) As regards the injury, in their request the exporters argued that 
the injury had been eliminated as a result of the fact that there 
had been no exports to the Community, and that the prices of 
Oammunity producers had risen steadily since the imposition of the 
anti-dumping duty. 
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The Council observes that as a result of the previous anti-dumping 
proceeding, the exporters decided to suspend all exports to the 
Community. The Council is of the opinion that this suspension can 
be interpreted neither as an indication that the injury has been 
eliminated, nor as a change of circumstances justifying a review of 
the injury. 
Furthermore, as regards the claim that Community producers have 
raised their prices, even should this claim be substantiated, these 
price increases would be a normal consequence of the existence of 
anti-dumping measures. 
Consequently, the Council does not consider the arguments advanced 
concerning injury to be relevant. 
(23) However, as noted above, the Council considers that a fair response 
to the exporters' request would be to take account of the results 
of this proceeding and to base the variable anti-dumping duty on 
the exporters' new normal value. 
This variable anti-dumping duty is established in the form of a 
minimum price, free at Community frontier, calculated on the basis 
of the cost of producing the urea as established in the course of 
the investigation period, plus a reasonable profit margin plus the 
ancillary costs incurred up to the Community frontier. On this 
basis, the minimum price free at Community frontier is ECU ... per 
tonne.5 It should be noted that this minimum price is lower than 
the price used as a basis for calculating the ad valorem duty 
established in the previous proceeding. 
(24) The ad valorem duty of 21.5% is retained for imports of urea 
originating in Venezuela, with the exception of urea exported by 
Pequiven and Nitroven. 
(25) These conclusions have not met with any objections from the anti­
dumping committee. 
5 In accordance with the provisions of Article 5 of Regulation (EEC) 
No 2423/88 concerning the non-disclosure of business secrets, this 
figure has been deliberately omitted from the published version of this 
regulation. 
8 -
(26) All the producers/exporters involved in this proceeding and the 
representatives of the Community producers were informed of the 
main facts and considerations on the basis of which it was proposed 
to recommend the termination of the review as regards Trinidad and 
Tobago and the amendment of the definitive measures as regards 
Venezuela. They were also granted a period of time in which to make 
their comments known following notification. The Commission noted 
their remarks and took due account of them. 
HAS ADOPTED TEES REGULATION: 
Article 1 
1. The review of anti-dumping measures concerning iinports of urea 
originating in Trinidad and Tobago is hereby terminated. 
2. The undertaking made by the National Energy Corporation of Trinidad 
and Tobago Ltd, and taken up by the Trinidad and Tobago Urea 
Company Ltd, which had been accepted by Council Regulation (EEC) No 
3339/87 and confirmed by Commission Decision No 89/143/EEC, is 
hereby cancelled. 
Article 2 
The anti-dumping duty of 21.5% (additional code 8550) imposed by 
Regulation (EEC) No 450/89 on imports of urea originating in 
Venezuela and falling within CN codes 3102 10 10 and 3102 10 99 
shall be retained for iinports of urea originating in Venezuela, 
with the exception of urea produced and exported to the Community 
by Venezolana del Nitrogeno CA (Nitroven) and Petroquimioa de 
Venezuela SA (Pequiven) (additional code 8549), for which the 
anti-dumping duty shall be the difference between the net price per 
tonne free at Community frontier, not cleared through customs, and 
the sum of ECU 110.5 per tonne. 
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Article 3 
The provisions in force concerning customs duties shall apply. 
Article 4 
This Regulation shall enter into force on the day following that of 
its publication in the Official Journal of the European 
Communities. 
This Regultion shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, For the Council, 

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