ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)529
Vol.1977/0170

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)529final.
Brussels.24October1977
Proposalfora
COUNCILREGULATION (EEC)
adoptingspecialmeasuresinrespectofimportsof
certainsteelnutsfromTaiwan
(submitted ,totheCouncilbytheCommission)
COM(77)529final.

Explanatory Memorandum
On7August1976,theCommissionpublishedintheOfficialJournalof
theEuropeanCommunities aNoticeoftheinitiationofanenquiry,
"basedonRegulation(EEC)n°s459/68and1439/74*intoimportsof
threadedortappedsteelnutsoriginatinginTaiwan.
DuringthecourseofthisenquirytheTaiwaneseexportersofsuch
nutsgaveUndertakings toincreasetheirexportpricestotheCom­
munity.TheCommissionacceptedtheseUndertakings butdecidednot
toterminatetheenquiryuntilitcouldbeestablishedthatthe
Undertakings werebeingrespected.It,therefore,established a
retrospective monitoringofimportsoftheseproductsfromTaiwan.
Thedetailscommunicated totheCommissionbytheMemberStatesin
inplementation ofthismonitoring eystemindicatethattherehasbeen-
widespreadevasionandviolationoftheUndertakings .Importsareef­
fectedatpriceswhicharelowerthan,thoseprovidedforintheUnder­
takings.Thedifferencevariesfromtransactiontotransaction butis
generallyintheregionof15/&»
TheCommission,therefore,submitstothe-Counciltheattached
ProposalforaRegulationimposingaspeoialdutyof15%onimports
ofcertainnutsofironorsteel,originatinginTaiwan,asprovided
forinArticle1(2)ofRegulation(EEC)N°459/68.

'FroposalfarCoirne.:.-!Iiegulation(EEC)
adoptingspecialmeasuresinrespectofimports
ofcertainsteelnutsfromTaiwan
THECOUNCILOFTHEEUROPEANCOMOTITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomic
Community,andinparticularArticle113thereof,
HavingregardtotheproposalfromtheCommission,
WhereasArticle1(2)ofCouncilRegulation(EEC)N°459/68of5
April1968onprotectionagainstdumpingorthegrantingofboun­
tiesorsubsidiesbycountrieswhicharenotmembersoftheEuro­
peanEconomicCommunity(l),aslastamendedbyRegulation
(EEC)Kb1411/77(2),providesthatspecialmeasuresmaybe
adoptedifsuchactiondoesnotruncountertoobligationsunder
theGATT;
WhereasimportsintotheCommunityofthreadedortappednuts,of
ironorsteel,originatinginTaiwan,increasedfrom200tonnes
■,ih1974toover9000tonnesin1976andwhereasthese
importswereeffectedatpriceswhichwereconsiderably lowerthan
thoseprevailingamongCommunityproducersoflikeordirectlycom­
petingproducts;whereastheseimportsareconcentrated mainlyon
nutsofaholediameternotexceeding10millimetres ;
WhereasthesefactorsallowedtheTaiwaneseexportersofsuchnuts
toobtainamarketshareofover18$>intheCommunityin1976;
Whereasthesedevelopments tookplacetothedetrimentoftheofsimilarnuts
Communityindustrywhoseproduction/decreasedfrom38000tonnes
rin1974to20000tonnesin1976,whereemploymentwas
reducedby30%between1974and1975and.wherenumerousfirmshave
hadtoceaseproduction 5
Whereas,inordertoascertaintheextentandthesourceofthe
criticalsituationinwhichthisCommunityindustryfounditself,
theCommissioninitiatedanenquirycoveringdumping,subsidiesand
thetermsandconditions onwhichimportswereeffected;
7T7TTJ7HFT1£T'"I 7.4♦1968,p.1.
(2)Bf®L160,30.6,1977,p-.4.■ /

WhereastheCommissionofficiallynotified ,theimportersand
exportersknowntobeconcerned ,andpublishedintheOfficial
JournaloftheEuropeanCommunitiesof7August1976anoticeof
theinitiationofthesaidenquiry(l);
Whereas,inthecourseoftheexaminationofthematter,carriedout
incollaboration withtheMemberStates,theCommissiongaveinteres­
tedpartiestheopportunitytomakeknowntheirviewsinwriting
andgavetothepartiesdirectlyconcernedtheopportunitytomeet
andtopresentopposingviewsandrebuttalarguments ;
Whereas,inthecourseofthesaidinvestigation ,theTaiwaneseex­
portersundertooktoincreasetheirexportpricestotheCommunity
toalevelwhichsatisfiedtheCommissionthat,ifsuchundertakings
wererespected,theintroduction ofprotectivemeasureswasnot,for
themoment,necessary ;
Whereas,however,theCommissionconsideredthatitwasnotopportune
toterminateitsenquiryondumping,subsidiesandthetermsandcon­
dition?onwhichimportswereeffecteduntilitcouldbeestablished
thattheundertakings givenwerebeingrespected ;
Whereas,therefore,theCommission,byDecision77/28o/E0S(2),es­
tablishedaretrospective monitoringofimportsintotheCommunity
ofcertainnutsfromTaiwan;
Whereastheinformation communicated totheCommission byMember
Statesinapplication ofthesaidDecisionshowsthattheundertakings
givenhavebeenevadedandviolatedandthattheimportpricestothe
Communityoftheseproductsvaryatlevelsaround15%belowtheprices
containedintheUndertakings ;
Whereas,inordertosafeguardtheCommunityindustrywhichisal­
readyinacriticalsituation,itisnecessaryandintheinterests
*
oftheCommunitytoadoptspecialmeasures,asprovidedforin
Article1(2)ofRegulation459/68,inrespectofimportsofthese
productsfromTaiwan,thesemeasurestotaketheformofaduty
additionaltothenormalcustomsdutyonthesaidproducts.
(1)O.J.N°C183,7.8.1976,p.4. ,
(2)O.J.N°L93,15.4.1977,p.18. •/••

-3-
HASADOPTEDTHISREGULATION :
Article1
1.Aspecialduty,additionaltothenormalcustomduties,taxes
andotherchargesnormallyimposedonimports,isherebyimposed
onthefollowingproducts,originatinginTaiwan:
■i
-threadedortappednuts,ofironorsteel,turnedfrom"bars, j
I•
rods,angles,shapes,sectionsorwire,ofsolidsection,of
aholediameternotexceeding6millimetres,fallingwithin j
subheadingex73.32EIoftheCommon.CustomsTariff; j
–threadedortappednuts,ofironorsteel,separatelyconsigned,j
ofaholediameternotexceeding10millimetres,fallingwithin j
subheadingex73.32BIIoftheCommonCustomsTariff. j
2.Thesaiddutyshallbeatarateof15$onthebasisofthe
valuedeclaredinconformitywithCommissionRegulation(EEC) j
No>375/°9of27February1969onthedeclarationofparticulars j
relatingtothevalueofgoodsforcustomspurposes. j.
.3.Theprovisionsinforceforthecollectionofcustomsdutiesshall j
applyforthecollectionofthisduty. [
Article2 j
■_•Artiole18ofRegulation459/68shallapplyby
analogytothespeoialmeasuresadoptedinthisRegulation. •!\
1
I
Article3 i
ThisRegulationshallenterintoforoeonthedayfollowingits j
publicationintheOfficialJournaloftheEuropeanCommunities. j
, 1·
: 1
ThisRegulationshallbebindinginitsentiretyanddirectly j
applicableinallMemberStates. j'.
I
1
(■
1
DoneatBrussels, FortheCouncil j
i
ThePresident !
(1)O.J.L52,3.3.1969,p.l.