COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC91) 15 final 
Brussels, 7 February 1991 
Proposal for a 
COUNCIL REGULATION (EEC) 
imposing a definitive anti-dumping duty on imports of 
barium chloride originating in the 
People's Republic of China 
(presented by the Commission) 
- 2 -
EXPLANATORY MEMORANDUM 
1. By Regulation (EEC) No 2402/89 the Commission imposed a provisional 
anti-dumping duty on imports of barium chloride originating in the 
People's Republic of China and the territory then known as the German 
Democratic Republic^1). 
2. This duty was extended for a period not exceeding two months by 
Council Regulation (EEC) No 3555/89<2>. 
3. The exporters requested and were granted a hearing. They also put 
their arguments In writing. 
4. The Commission took into consideration all the views expressed before 
arriving at its final conclusions. 
5. The Commission also took Into consideration the fact that the 
proceeding concerning the German Democratic Republic has become 
without object as a result of the unification of the GDR with the 
Federal Republic of Germany on 3 October 1990. 
6. In accordance with Article 12 of Council Regulation (EEC) No 2423/88, 
the Commission proposes that the Council impose a definitive anti­
dumping duty on imports of barium chloride originating in the 
People's Republic of China. 
(1) OJ No L 227, 4.8.1989, p. 24. 
(2) OJ No L 349, 30.11.1989, p.1. 
- 3 -
Proposal for a 
COUNCIL REGULATION (EEC) 
Imposing a definitive antI-dumping duty on imports of 
barium chloride originating in the 
People's Republic of China 
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 Community*1) and in particular Article 
12 thereof, 
Having regard to the proposal from the Commission, submitted after 
consultation within the Advisory Committee as provided for in the above 
Regulation, 
Whereas: 
I. PROCEDURE 
A. PROVISIONAL MEASURES 
(1) By Regulation (EEC) No 2402/89 the Commission imposed a provisional 
antI-dumping duty on imports of barium chloride originating in the 
People'3 Republic of China and the German Democratic Republic*2*. 
This duty was extended for a period not exceeding two months by 
Council Regulation (EEC) No 3555/89<3>. 
(1) OJ No L 209, 2.8.1988, p.1. 
(2) OJ No L 227, 4.8.1989, p. 24. 
(3) OJ No L 349, 30.11.1989, p.1. 
- 4 -
B. SUBSEQUENT PROCEDURE 
(2) Following imposition of the provisional anti-dumping duty, the 
exporters of the product in question requested, and were granted, an 
opportunity to present their case. They also made written 
submissions. 
(3) The parties were given and made use of every possibility of 
exercising the rights provided for in Article 7 (4) of Regulation 
(EEC) No 2423/88. 
(4) The Commission took into consideration all the views put forward 
before arriving at its final conclusions, which are endorsed by the 
Counc iI. 
C. SITUATION CONCERNING THE TERRITORY OF THE 
GERMAN DEMOCRATIC REPUBLIC 
(5) On 3 October 1990 the abovementioned territory formally became part 
of the Federal Republic of Germany and, as a consequence, became an 
integral part of the Community. Since Regulation (EEC) No 2423/88 
lays down provisions for protection against dumped or subsidised 
imports from countries not members of the European Community, it 
follows that the anti-dumping proceeding concerning imports of 
barium chloride originating in the abovementioned territory no 
longer has any legal basis and is therefore without object. 
- 5 -
D. PRODUCT COVERED BY THE INVESTIGATION 
AND LIKE PRODUCTS 
(6) in Regulation (EEC) No 2402/89 the Commission drew a distinction 
between the crystallized and anhydrous forms of barium chloride but 
further investigation after the imposition of the provisional duty 
has caused this distinction to be dropped. 
(7) Examination of the physical characteristics of the two forms of the 
product shows that the differences are negligible. Their chemical 
formula is the same, apart from the presence of water molecules in 
the crystallized form, which can be changed to the other form simply 
by drying. The two forms even look similar: the colour is the 
same, the crystals are the size of grains of sand while the 
anhydrous product is a powder, and the packing is almost identical. 
(8) The numerous applications of crystallized barium chloride do not 
allow any final conclusions on this factor. While anhydrous barium 
chloride has more specific applications, this can hardly lead to the 
conclusion that there is a distinct market for this product since it 
is so easily manufactured from the crystallized form. The market 
for the anhydrous product Is thus also an outlet for producers of 
the crystallized product. This being so, anhydrous and crystallized 
forms of barium chloride constitute one product for the purposes of 
this proceeding. 
(9) The barium chloride produced by the Community industry is identical 
to that originating in the People's Republic of China. 
E. DUMPING 
a. Normal value 
(10) Since the People's Republic of China is a non-market economy, the 
normal value was established in the preliminary investigation, in 
accordance with Article 2(5) of Regulation (EEC) No 2423/88, by 
- 6 -
using the price at which a like product is sold in a third country 
having a market economy. The United States was chosen for this 
purpose for the reasons and under the conditions set out in recitals 
10 to 13 of Regulation 2402/89. 
(11) However, since it was not possible, for reasons beyond the control 
of the Commission, to verify US market prices on the spot, another 
solution had to be found. The numerous efforts to do so included 
contacts with a great number of barium chloride producers of a 
certain size in other countries as well as with local authorities 
which were approached to obtain the cooperation of the firms 
contacted. These efforts, however bore no fruit within a reasonable 
per iod of time. 
(12) In view of these difficulties, the Commission was obliged to 
establish the normal value by using the price payable in the 
Community, duly adjusted to include a profit margin of less than 10% 
corresponding to that of the most efficient company in the sector, 
In accordance with Article 2(5) of Regulation (EEC) No 2423/88. The 
two exporters concerned were notified of this decision. While the 
Chinese exporter had objected to the choice of the United States as 
a reference country, no objection was raised against the use of 
Community prices as a basis for establishing the normal value. 
b. Export price 
(13) The export price for the purpose of applying the provisional 
measures was established on the basis of information published by 
Eurostat since the Chinese exporter failed to reply. 
(14) In the final stage of the investigation, the Commission received 
some information on the prices and terms of payment of this 
exporter. Although incomplete, it supported the conclusions drawn 
at the time the provisional measures were imposed, notably those set 
out in recital 14 of Regulation 2402/89. 
- 7 -
c. Comparison 
(15) In comparing normal value with export prices in the case of the 
Chinese exporter, the Commission took account, where this seemed 
appropriate, of differences affecting price comparability, in 
particular terms of payment and the cost of transport from the 
exporter's works to the Community frontier. These adjustments were 
calculated on the basis of information obtained in the preliminary 
investigation and confirmed in the final stage of the investigation. 
(16) All comparisons were made at the ex-works stage. 
(17) The margin was established by comparing the relevant monthly normal 
value with export prices as established by Eurostat by month and by 
Member State. 
d. Dumping margin 
(18) The conclusions of the preliminary investigation, showing that 
exports to the Community of barium chloride originating In the 
People's Republic of China were being dumped, were confirmed. The 
dumping margin corresponds to the difference between the normal 
value established and the export price to the Community. 
(19) On the basis of the free-at-frontier price, the dumping margin is 
50.13% for imports originating in the People's Republic of China. 
(20) The Council endorses the Commission's conclusions with reference to 
the People's Republic of China set out in recitals 10 to 19. 
F. INJURY 
(21) As the proceeding with regard to the German Democratic Republic has 
become without object for the reasons stated in recital 5, the 
Commission has examined whether the imports of barium chloride 
originating in the People's Republic of China were, taken in 
isolation, causing or threatening to cause injury to the Community 
industry. 
- 8 -
(22) In this connection, particular consideration has been given to the 
volume and evolution of these imports, the degree by which they 
undercut the prices charged by Community producers as well as to the 
production capacity in the People's Republic of China and the 
Chinese export policy towards other third country markets. The 
findings made in this regard (recitals 20 to 33 and 35 to 44 of 
Regulation (EEC) No 2402/89), which are not contested by the 
exporter, lead to the conclusion that even when the imports from the 
German Democratic Republic are disregarded, the imports of barium 
chloride originating in the People's Republic of China must be 
considered as causing and threatening to cause injury to the 
Community industry. 
(23) The Chinese exporter has continued to deny that it is the source of 
injury or threat of injury in this matter. Its arguments, however, 
cannot be accepted for the following reasons. 
(24) With regard to the argument that the prices of Chinese exports have 
rarely been below the minimum price laid down by Council Regulation 
(EEC) No 2370/83<4) and regardless of the lack of complete and 
fully reliable documentation on the subject, the Commission notes 
that compliance with a measure is not in itself a guarantee that 
dumping is not taking place nor that injury is not being caused by 
such dumping. 
(25) With regard to the cost of raw materials and labour, cited as 
grounds for low export prices, the Commission points out that this 
argument is not pertinent to the establishment of injury and does 
not obviate the undercutting referred to in recital 24 of Regulation 
No 2402/89. 
(26) As to the Chinese exporter's argument that the volume of exports had 
fallen since the imposition of definitive anti-dumping duties in 
1983, it should be noted that, while this is a normal consequence of 
trade protection measures, the exporter was, nevertheless, able to 
retain a sizeable share of the Community market despite these 
measures. 
(4) OJ No L 228, 20.8.1983, p. 28 
- 9 -
(27) Under these conditions, the Council confirms the above conclusions 
and those set out in Regulation 2402/89 concerning injury (see 
recitals 20 to 39, with the exception of Recital 34) and threat of 
injury (see recitals 40 to 44). 
G. COMMUNITY INTEREST 
(28) The Council confirms the findings and conclusions set out in 
recitals 45, 46, 47, 49, 51 and 52 of Regulation (EEC) No 2402/89. 
The Council considers that ensuring the survival of the Community 
firms will be beneficial for competition on the Community market and 
that the disappearance of a major part of Community production would 
pose a threat to the supplies of Community consumers. The interests 
of the Community therefore call for intervention. 
II. DEFINITIVE DUTY 
(29) In view of the injury caused and the threat of injury to the 
Community industry as a result of imports originating in the 
People's Republic of China since the lapsing of measures in August 
1988, the Council concludes that a definitive ad valorem anti­
dumping duty must be imposed. 
(30) With regard to the amount of duty necessary to remove the injury and 
threat of injury, the Commission has taken account of both the price 
of the imports concerned and the minimum selling price which would 
enable Community producers to cover production costs during the 
investigation period, plus a reasonable profit margin that is 
calculated on the basis of the profit margin of the most efficient 
producer before increased penetration of dumped exports. These two 
prices, duly adjusted to allow for the importer's commission and 
customs duty, were compared. The difference between the two prices, 
expressed as a percentage of the cif value of export prices, is the 
percentage by which the prices have to be raised to remove the 
injury and threat of injury and stands at 25.8% of the net free-at-
Community-frontier price before duty. The Council agrees with these 
considerations. 
- 10 -
III. COLLECTION OF THE PROVISIONAL DUTY 
(31) In view of the difficulties encountered in establishing the normal 
value, the final investigation was not completed within the time-
limits laid down in Article 11 (5) of Regulation (EEC) No 2423/88. 
The Council therefore notes that the amounts secured by the anti­
dumping duty are released, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. A definitive anti-dumping duty is hereby imposed on imports of 
barium chloride falling within CN code 2827 38 00 and originating in 
the People's Republic of China. 
2. The amount of the duty shall be equal to 25.8% of the net free-at-
Community-frontier price before duty. 
3. The provisions in force with regard to customs duties shall apply. 
Article 2 
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 a I I Member States. 
Done at Brussels, For the Council 
The President 
ISSN 0254-1475 
COM(91) 15 final 
DOCUMENTS 
EN 02 
Catalogue number : CB-CO-91-Q31-EN-C 
TSBN 92-77-69110-7 
PRICE 1 - 30 pages: 3.50 ECU per additional 10 pages: 1.25 ECU 
Office for Official Publications of the European Communities 
L 29S5 Luxembourg