IL: 
COMMISSION OF THE EUROPEAN COMV1UNITIES 
C0MC94) 27 final 
Brussels, 04.02.1994 
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Proposal for a 
COUNCIL REGULATION (EC) 
mm imposing definitive anti-dumping duties on imports of fluorspar 
originating in the People's Republic of china and 
collecting definitively the provisional 
anti-dumping duty 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
(1) Commission Regulation (EEC) N" 2463/93*) imposed a provisional 
anti-dumping duty on imports of fluorspar originating in the 
People's Republic of China. 
(2) council Regulation (EC) N* 3529/932) extended this duty for a 
period of two months. This provisional duty is therefore due to 
expire on 7 March 1994. 
(3) The Chinese exporters requested and were granted a hearing and made 
their views known in writing, as did other interested parties. 
(4) Following publication of the provisional duty, in view of the 
difficulties encountered by some Customs Authorities in the 
interpretation of the description of the product concerned by the 
proceeding, the Commission has amended Regulation (EEC) N* 2463/93 
by commission Regulation (EC) N* 3421/933) in order to clarify the 
description of the product which subsequently is defined as 
follows : 
"fluorspar presented in filter cake form or in powder form, falling 
within CN Code ex 2529 21 00 (Taric Code 2529 21 00 10) and CN Code 
2529 22 00 (Taric Code 2529 22 00 10) originating in the People's 
Republic of China". 
(5) With regard to the comparison between normal value and export 
price, the Commission made the comparison for its provisional 
findings on an ex works basis for the normal value and on a FOB 
Chinese harbour basis for the export price. After due 
consideration of the arguments raised by the parties, the 
Commission proposes, for the purpose of definitive duty Regulation, 
to make the above comparison on an ex-FOB basis. 
(6) As far as other points in the provisional measures are concerned, 
particularly with regard to injury and causality, various arguments 
were put forward by the Chinese exporters as to why definitive 
measures should not be imposed. 
These arguments are discussed in detail in the attached regulation 
and the Commission has proposed that definitive anti-dumping 
measures should be imposed. 
(7) This measure has the form of an anti-dumping duty equal to the 
difference between a minimum price of ECU 113.50 per tonne (dry net 
weight) and the net free at Community frontier price before 
customers clearance. 
1) O.J. N# L 226, 7.9.1993, p. 3 
2) O.J. N* L 321, 23.12.1993, p. 1 
3) O.J. N# L 312, 15.12.1993, p. 5 
-AC3L-
COmCH. KEGOUkTIOH (EC) M4 
of 
imposing definitive anti-dumping duties on imports of fluorspar 
originating in the People's Republic of China and 
collecting definitively the provisional 
anti-dumping duty 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Cnanmrmity, 
Having regard to Council Regulation (EEC) N* 2423/88 of 11 July 1988 on 
protection against dumped or subsidised imports from countries not 
members of the European Economic Community(*) and in particular 
Article 12 thereof. 
Having regard to the proposal submitted by the Commission after 
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consultation within the Advisory Committee as provided for by the above 
Regulation, 
Whereas: 
(1) O.J. »• I» 205, 2.8.1988, p. 1 
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A. Provisional measures 
(1) By Regulation (EEC) N* 2463/93(2) as amended by Regulation (EC) 
N* 3421/93<3), the Commission imposed a provisional anti-dumping 
duty on imports of fluorspar, in filter cake or powder form, 
falling within CN Code ex 2529 21 00 (Taric code 2529 21 00 10) 
and CN Code ex 2529 22 00 (Taric code 2529 22 00 10), originating 
in the People's Republic of China. 
The Council by Regulation (EC) N" 3529/93<4) extended the 
validity of this duty for a period not exceeding two months. 
B. Subsequent procedure 
(2) Subsequent to the imposition of the provisional anti-dumping duty, 
the interested parties who so requested, were granted an 
opportunity to be heard by the commission. Certain of these 
parties also presented written submission making known their views 
on the findings. 
(3) Upon request, 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 measures and the 
definitive collection of amounts secured by way of provisional 
duty. 
They were also granted a period within which to make 
representations subsequent to the disclosure. 
(2) O.J. N* L 226, 7.9.1993, p. 3 
(3) O.J. N# L 312, 15.12.1993, p. 5 
(4) O.J. N* L 321, 23.12.1993, p. 1 
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(4) The parties' comments were considered and the Commission modified 
its conclusions where it was deemed to be justified. 
( 5 ) Because of the complexity of the data examined and of the 
difficulties faced in selecting the reference country, the 
investigation could not be concluded within the time limit 
provided for in Article 7(9)(a) of Regulation (EEC) N* 2423/88, 
hereafter referred to as the Basic Regulation. 
c. Product under investigation and like product 
(6) Subsequent to the publication of Regulation (EEC) N* 2463/93 
(hereinafter referred to as the Provisional Duty Regulation), the 
definition of the product was amended by Regulation (EC) N* 
3421/93. 
No comments were received by the commission in respect of this 
amendment and therefore this product definition is confirmed by 
the Council for definitive determination. 
(7) As regards the definition of like product within the meaning of 
Article 2(12) of the Basic Regulation, the Commission has 
established in recitals 10 and 14 of the Provisional Duty 
Regulation, that fluorspar originating in China, in South Africa -
selected as a reference country - and in the European Community, 
has the same chemical and physical characteristics, the same final 
application and is fully interchangeable, irrespective of origin. 
In the absence of new arguments submitted by the parties, the 
Council confirms the conclusions of the Commission as set out in 
recital 10 and 11 of the Provisional Duty Regulation. 
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D. Dumping 
1. Normal value 
(8) In the Provisional Duty Regulation, the Commission concluded that 
South Africa was an appropriate reference country for the 
determination of the normal value of Chinese imports into the 
Community. 
Therefore, normal value was established in accordance with 
Article 2(5)(a)(i) of the Basic Regulation on the basis of the 
prices of fluorspar sold by a South African producer on its 
domestic market, for the reasons explained in recitals 14 and 15 
of the Provisional Duty Regulation. 
As the parties concerned by the proceeding have raised no 
objection to this choice and to the method of the determination of 
the normal value, the Council confirms the Commission's findings 
as set out in recitals 14 and 15 of the Provisional Duty 
Regulation. 
(9) In the provisional findings, recital 13, the Commission had also 
considered that, in view of the fact that the South African 
producer has a more difficult access to raw materials, a downward 
adjustment of the selling prices in South Africa was necessary for 
the establishment of the normal value in a reasonable and 
appropriate manner, in accordance with Article 2(5) of the Basic 
Regulation. 
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(10) The complainants claimed that the above-mentioned adjustment is 
not in line with the Basic Regulation for the following legal and 
technical reasons: 
(1) The downward adjustment implies the fact that the 
Commission has taken costs related to the non-market 
economy country into consideration, which in accordance 
with Article 2(5) of the Basic Regulation should be 
avoided; 
(ii) The Commission has taken into account only a selective 
choice of natural advantages and has not taken into 
consideration many other natural advantages and 
disadvantages, in addition to easier access to raw 
materials. 
The Commission cannot accept these arguments. Indeed, the 
consideration of natural advantages, as described in the 
Provisional Duty Regulation, does not infer taking into account 
any costs in the non-market economy country. The downward 
adjustment is restricted to eliminating, in the determination of 
the normal value in the reference country, certain steps of the 
production process, which are necessary in South Africa and are 
not necessary in the People's Republic of China. The consequence 
of this elimination being that the relevant costs, as established 
in the reference country, should not be included in the 
determination of the normal value. 
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In this respect, the Commission believes that the purpose of this 
adjustment, based on the natural advantage in the exporting 
country, is that of establishing the normal value in the reference 
country in an appropriate and not unreasonable manner, in 
accordance with Article 2(5) of the Basic Regulation. 
(11) As to the technical arguments submitted by the complainants in 
this respect, the Commission considers that these elements are not 
related to the natural advantages enjoyed by the Chinese 
production, in addition, all the other advantages or 
disadvantages referred to by the complainants have only been 
supported by allegations without any evidence being supplied. In 
contrast to the above, it should be stressed that the adjustment 
made to the normal value was supported by data provided by the 
South African producer in the course of the verification visit 
showing that certain steps of the production process carried out 
in South Africa are not necessary in China due to easier access to 
the main raw material as a result of a higher fluorspar content in 
the mined material. 
(12) The Commission considers that the arguments submitted are not duly 
substantiated and therefore confirms the determinations set out in 
the Provisional Duty Regulation. 
The Council confirms the above conclusions of the Commission. 
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2. Export price 
(13) Due to the insufficient cooperation of the Chinese producers, and 
as set out in recitals 16 to 18 of the Provisional Duty 
Regulation, the export price was determined on the best 
information available, in accordance with Article 7(7) (b) of the 
Basic Regulation. In the specific circumstances, this information 
was considered to be the data contained in Eurostat for Chinese 
exports under CN Code ex 2529 22 00, which shows an average CIF 
price at the Community frontier of ECU 82.5 per tonne. 
As the parties have not contested this determination, the council 
confirms this conclusion. 
3. Comparison 
(14) For purposes of provisional determination, normal value on an ex-
works basis was compared with a FOB Chinese port export price. 
(15) The complainants have objected to this methodology on the basis 
that this comparison is not at the same commercial stage and that 
as a consequence the transport costs which are necessary in South 
Africa to convey the product from the factory to the port have not 
been taken into account. 
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The exporters insisted on a comparison made on a FOB level for the 
export price in the non-market economy country and on an ex-works 
basis for the normal value in the reference country, arguing that 
in case of a non-market economy country, the premises of the 
exporters correspond to the borders of the country. 
The Commission, on considering all the arguments brought forward, 
accepts that, for purposes of comparison, the normal value and 
export price should normally be compared on an ex-factory level so 
that both can be compared at the same stage. In the case of a 
non-market economy country, Article 2(5) of the Basic Regulation 
precludes the investigation of the transport costs within the 
country. Because of this, the determination of a normal value at 
an ex-factory level is not possible unless the transport costs are 
calculated on the basis of the reference country. This requires, 
however, knowledge of the actual location of the production 
centres in the non-market economy country and in the case of there 
being several producers at different locations, the actual 
production of each one of them. 
In this specific case and in view of the fact that the cooperating 
exporters represent only 21% of the totality of the Chinese 
fluorspar imports into the Community in the investigation period, 
the Commission has not sufficient information concerning the 
actual distance of all the production centres to the ports. This 
lack of cooperation makes it impossible to evaluate the actual 
location of the production centres which export to the European 
Community. 
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In the circumstances, the Commission, in view of the fact that the 
comparison cannot be made at an ex-works stage, considers that the 
first equivalent stage at which reliable information is available 
is the FOB level. Because of this, the Commission considers the 
comparison at the FOB level to be the more reasonable and 
appropriate. 
The Council confirms these conclusions. 
(16) As to the other adjustments made by the Commission, no 
observations have been brought forward by the parties. The 
conclusions of the Commission are therefore confirmed by the 
Council. 
4. Dumping margin 
(17) As s result of the modification to the export price calculation, 
the definitive dumping margin, expressed as a percentage of the 
CIF value, is equal to 37.8%. The Council confirms the above 
conclusions as well as all the other conclusions set out in 
recitals 21 and 22 of the Provisional Duty Regulation. 
E. injury 
(18) In its preliminary findings, (recital 23 of the Provisional Duty 
Regulation), the Commission assessed injury on data referring to 
the free market and concluded that the Community fluorspar 
industry had suffered material injury because of the effects of 
the dumped imports from the country concerned. 
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(19) The exporters have argued that the injury was not caused to a 
Community industry within the meaning of Article 4(5) of the Basic 
Regulation and that the complainants do not qualify as such 
Community industry. 
In respect of this argument, the Commission has established that 
the cooperating producers accounted for approximately 90% of the 
total EC production of fluorspar (see recital 3 of the Provisional 
Duty Regulation), and therefore complied with the requirements of 
Article 4(5) to be qualified as the community industry. 
As established in recital 23 of the Provisional Duty Regulation, 
the Commission considered that, because of the particular 
characteristics of the fluorspar market in the Community, the 
assessment of injury could be restricted to the free market. This 
separation only concerns the assessment of injury and does not 
infer a reduction of the size of the Community industry for 
purposes of its qualification under Article 4(5). 
(20) Furthermore, the exporters contested the separation of the market 
into two different segments, which they considered wholly 
unwarranted and disputed that it was in agreement with the 
criteria indicated by the jurisprudence of the court of Justice of 
the European community. 
In this respect, however, no substantiated arguments were made 
concerning the non-respect of these criteria and, accordingly, the 
Commission confirms its findings as indicated in recital 23 of the 
Provisional Duty Regulation. 
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(21) The Council confirms the conclusions of the Commission concerning 
the market to be assessed and all data concerning the 
determination of injury. 
F. Causal link between injury and dumped Imports 
(22) In recital 40 of the Provisional Duty Regulation, the Commission 
concluded that the dumped imports originating in the People's 
Republic of China, because of their increasingly strong presence 
on the Community market, their low prices and the resultant lack 
of profitability of the Community industry, caused material injury 
to the European community industry. 
The exporters contested the causal link between the dumped imports 
from China and the material injury suffered by the community 
industry, as established by the Commission. 
The Commission has replied to these arguments and has received no 
further comments from the exporters. 
Therefore, the Council confirms the conclusions of the Commission 
as set out in recital 35 to 39 of the Provisional Duty Regulation. 
G. Pi—unity Interest 
(23) The Commission has received no observations from the interested 
parties concerning its provisional findings. Therefore, the 
considerations on the Community interest, as set out in recitals 
41 to 44 of the Provisional Duty Regulation, are to be considered 
final. 
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The Council confirms these conclusions. 
H. Definitive duty 
(24) In order to determine whether a lower dumping duty should be 
imposed, the commission compared the weighted average selling 
price of Chinese fluorspar (on a Community frontier customs 
cleared basis) with the corresponding average price of fluorspar 
produced and sold during the same period by the Community 
industry, since this difference was higher than the dumping 
margin established, it is the latter which should be imposed. 
As a result of the modification in the dumping margin, the minimum 
price referred to under recital 45 of the Provisional Duty 
Regulation should be 113.5 ECUs per tonne. All the other 
conclusions of recital 45 are confirmed for the purpose of 
definitive determinations. 
The Council confirms the conclusions of the Commission. 
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I. Collection of provisional duties 
(25) in view of the dumping margin established and the seriousness of 
the injury caused to the Community industry, the Council considers 
it necessary that amounts secured by way of provisional anti­
dumping duties should be definitively collected, 
HAS ADOPTED THIS REGULATION: 
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Article 1 
1. A definitive anti-dumping duty is hereby imposed on imports of 
fluorspar in powder or filter cake form, falling within CM Code ex 
2529 21 00 (Taric code 2529 21 00 10) and CM Code ex 2529 22 00 
(Taric code 2529 22 00 10), originating in the People's Republic 
of China. 
2. The duty shall be equal to the difference between a minimum price 
of 113.50 ECU per tonne (dry net weight) and the net free at 
Community frontier price before customs clearance. 
3. The provisions in force concerning customs duties shall apply. 
Article 2 
The amounts secured by way of provisional anti-dumping duty imposed by 
Regulation (EEC) M* 2463/93 shall be definitively collected. 
Article 3 
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This Regulation shall enter into force on the day following that of its 
publication in the Official Journal of the European Communities. 
The Regulation shall be binding in its entirety and directly applicable 
in all Member States. 
Done at Brussels, 
For the council 
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BSN 0254-1475 
COM(94) 27 final 
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