ARCHIVES HISTORIQUES 
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COM (83) 506 
 
 
 
Vol. 1983/01 96 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 506 final
Brussels, 27 July 1983
PROPOSAL FOR A COUNCIL REGULATION (EEC)
accepting an undertaking given in connection with the anti-  
dumping review proceeding on imports of urea ammonium nitrate 
solution fertilsier (UAN) originating in the USA and terminating
the proceeding
(submitted to the Council by the Commission)
COM (83) 506 final

EXPLANATORY MEMORANDUM
Since the submission of Proposal Com (83) 459 the Commission has 
received a price undertaking from the exporter concerned which 
it considers acceptable. The Anti-dumping Committee has been 
consulted and only the French delegation was not in favour of 
accepting the undertaking.
Accordingly, the C om m ission submits to the Council a  modified 
proposal to accept the price undertaking offered b y  Agrico C hem ical 
C o m p an y  and close the proceeding.

Proposal for a
COUNCIL REGULATION (EEC)
accepting an undertaxing given in connection with the anti­
dumping review proceeding on imports of urea ammonium nitrate 
solution fertiliser (UAN) originating in the USA and terminating 
the proceeding
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 3017/79 of 20 December 1979 
on protection against dumped or subsidized imports from countries not 
members of the European Communityd), as amended by Regulation (EEC)
No 1580/82(2), and in particular Article 10 thereof,
H aving regard to the proposal submitted by the Com m ission
after consultations within the Advisory Committee as provided for under
the above Regulation,
Whereas,
A. Provisional action
1. T h e  C o m m issio n , b y  Regulation ( E E C )  N o  290/83 (3), im p o sed  a  provisional anti­
d u m p in g  d u ty o n  u rea a m m o n iu m  nitrate solution fertiliser ( U A N )  originating in the u s|\. 
T h a t  d u ty w a s  extended for a  m a x im u m  period of tw o  m o n th s b y  
R egulation ( E E C )  N o 1 3 6 8 /8 3 (4 ) at the request of the exporter  
con cern ed .
B . S u b seq u en t procedures
2 - F ollow ing the im position of the provisional anti-dum ping duty theandexporter /certain. /C o m m u n ity  producers concerned requested, a n d  
w e r e  granted, a n  opportunity to b e h eard  b y  the C o m m issio n  .
T h e  exporter s  also m a d e  written
subm issions m a k in g  k n o w n  its view s o n  the duty .
(1) 0 J  N o  L  339, 31.12.1979, p. 1.
(2) 0 J  N o  L  178,· 22.6.1982, p. 9.
(3) 0 J  N o  
( A )  0 J  N oL 33, A.2.1963, p. 9.L 1 ACf, 31.5.1983, p. 21.

-  2 -
The exporter concerned further requested to be informed of certain 
facts and essential considerations on the basis of which it was 
intended to recommend definitive action and this request was granted.
C. Dumping
3. For the imposition of the provisional duty the Commission, in arriving 
at the most appropriate level at which to make the comparison between 
normal value and export prices, took account of^the fact that Agrico
supplied almost all its domestic customers ex-terminal; these storage
/■terminals are situated in areas of high consumption and are supplied 
mostly by direct pipeline from the manufacturing plant and also by 
barge or truck. The Commission, in its provisional determination 
considered, that the costs of operating these terminals were, by nature, 
overheads and accordingly no allowance could be made for these costs.
4. The exporter, Agrico, contested this determination and submitted further 
evidence in support of its argument that certain of these costs were 
treated by the company as variable and that,in any event, a direct relationship
■jn terms of Article 2 (10) (c) of Regulation (EEC) No 3017/79 existed between all 
the costs of the terminal and the sales under consideration.
5.In its definitive determination the Commission took the view that, 
since such costs were incurred prior to the sale to purchasers
on the domestic market, 0r would have been incurred whether or not any 
particular sale was made, no direct relationship between these 
costs and these sales could be established and accordingly no allowance 
could be made;
6.Allowance was, however, made for the cost of transporting the product to 
the terminal, a similar deduction being made in the case of export sales 
for the cost of transport from the plant to an f.o.b. level.
7.Account was taken of differences  in the terms and conditions

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of sale, namely credit terms and salesmen's salaries , and
0f differences in the concentration of nitrogen in the product in
question; a number of expenses which Agrico claimed as ancillary to
salesmen's salaries were not deducted since no direct relationship
between these expenses and the sales under consideration was established, in additioi no allowance was made for quantity differences claimed by Agrico since these
claims cid not fall into any of the categories specified in Article 2(10) b) of Regulation 
(EEC) No 3017/79.
•  8. The exporter also submitted evidence’  relating to transport costs to the
Community frontier which has led the Commission to adjust the weighted
average dumping margin expressed as a percentage of the c.i.f. Community
frontier price to 3.9%.
D. Injury
9.No fresh evidence regarding injury to the Community industry has been 
submitted, the Commission has therefore confirmed the conclusions on 
injury reached in Regulation (EEC) No 290/83.
10.  In the Commission's view, therefore, the facts as finally determined 
show that the injury being caused by dumped imports of UAN 
originating in the U.S.A., taken in isolation from that caused by 
other factors, has to be considered as material.
E. Community Interest
11.  Although no representations have been received by the Commission from 
consumers in the Community, importers to the Community have argued that 
the introduction of protective measures would significantly increase 
costs in the agricultural industry and therefore not be in the Community's 
interests; however, the Commission considers that the interests of the 
Community are not served in the long term by a Community industry
weakened or reduced by persistent dumping and in view of the particularly
/
serious difficulties facing the Community industry and the relatively 
low incidence of a price increase on the costs of the agricultural 
industry concerned, the Commission has, however, come to the conclusion 
that it is in the Community's interests that action be taken.

- 4 -
F.  Undertaking 
1 2'  The exporter concerned was informed of the main findings of the 
investigation and commented on them. An undertaking was 
subsequently offered by Agrico concerning their exports of UAN 
to the Community.
The effect of the said undertakings will be to increase export prices 
to the Community to the level necessary to eliminate the dumping.
This increase does not exceed the dumping margin found in the 
investigation.
However, during the consultations within the Advisory Committee concern­
ing the acceptability of this undertaking, one delegation objected to 
the termination of the proceeding on the basis of acceptance of this undertaking.
The Commission has consequently submitted a proposal to the Council 
to terminate the proceeding on the basis of the acceptance of the 
undertaking offered.
G.  Existing definitive duty
13. This Decision does not affect the continued application of the
definitive anti-dumping duties on imports of UAN originating in the 
USA imposed by Regulation (EEC) No 349/81(5) since the Commission has 
received no evidence to alter its view that such continued application 
is a requirement for the elimination of injury and the prevention 
of its recurrence.
HAS ADOPTED THIS REGULATION:
50J N o  L  39, 12.2.1981, p. 4.

- 5  -
Article 1
The Commission hereby accepts the undertaking given by 
Agrico Chemical Company in connection with the anti-dumping 
review proceeding concerning urea ammonium nitrate solution 
fertilizer falling within Common Customs Tariff subheading 
ex 31.02 C and corresponding to NIMEXE code ex 31.02-90 
originating in the United States of America.
Article 2
The anti-dumping review proceeding concerning imports of urea 
ammonium nitrate solution fertilizer originating .in the 
United States of America is hereby terminated.
D o n e  at Brussels, 27 July 1983 F o r the C om m ission