COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC90) 10 final 
Brussels, 26 January 1990 
Proposal for a 
COUNCIL REGULATION (EEC) 
repealing Regulations (EEC) No 1826/84 
and No 1282/81 imposing definitive anti-dumping duties on imports 
of vinyl acetate monomer originating in Canada or in 
the United States of America 
(presented by the Commission) 
Cja^n ** f 
EXPLANATORY MEMORANDUM 
1. A definitive anti dumping duty was imposed on imports of vinyl 
acetate monomer (VAM) originating in Canada by Council Regulation 
(EEC) No 1826/841 and was subsequently amended by Council 
Regulation (EEC) No 2879/872. 
A definitive ant I-dumping duty on imports of VAM originating in the 
USA was imposed by Council Regulation (EEC) No 1282/813 and 
amended by Council Regulation (EEC) No 2357/874. 
2. In November 1988 the Commission received a request lodged on behalf 
of Quantum Chemical Corporation, a US producer/exporter, for a 
review of the anti-dumping measures. 
In view of the allegations made by the US producer/exporter and the 
consequent possibility that exports of VAM originating in Canada 
were also no longer being dumped or causing injury to the Community 
industry, the Commission considered It appropriate to extend the 
review to include imports of VAM originating in Canada to ensure 
that the duty would remain in force only to the extent necessary to 
counteract dumping which Is causing injury. 
3. The Commission announced by a notice in the Official Journal of the 
European Communities5 the initiation of a review of ant I-dumping 
measures concerning imports into the Community of vinyl acetate 
monomer originating in Canada and the United States of America and 
commenced an investigation. 
1 OJ No L 170, 29.06.1984, p. 70. 
2 OJ No L 275, 29.09.1987, p. 1. 
3 OJ No L 129, 15.05.1981, p. 1. 
4 OJ No L 213, 04.08.1987, p. 32. 
5 OJ No C 105, 25.04.1989 p. 3 
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4. Normal value, which was established on a weighted average basis for 
each of the producers' domestic sales of VAM and in one case on the 
basis of the highest domestic price of another producer, was 
compared with the export prices on a transact ion-by-transact ion 
basis. On this basis no dumping was found. 
5. In the light of the above findings, it is concluded that in the 
absence of dumping this review proceeding should be terminated and 
the ant I-dumping duties referred to above should be repealed. 
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COUNCIL REGULATION (EEC) 
repealing Regulations (EEC) No 1826/84 and No 1282/81 imposing definitive 
anti-dumping duties on imports of vinyl acetate monomer originating in 
Canada or in the United States of America 
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 Community1, and In particular Articles 9 and 14 
thereof, 
Having regard to the proposal submitted by the Commission after 
consultations within the Advisory Committee as provided for under the above 
Regulation, 
WHEREAS: 
A. PROCEDURE 
(1) A definitive anti dumping duty was imposed on imports of vinyl acetate 
monomer (VAM) originating In Canada by Council Regulation (EEC) 
No 1826/842 and was subsequently amended by Rtcjuiit ion dTO 
No 2879/873. 
A definitive anti-dumping duty on imports of VAM originating in the 
USA was imposed by Council Regulation (EEC) No 1282/814 and amended 
by Regulation (EEC) No 2357/875. 
1 OJ No L 209, 02.08.1988, p. 1. 
2 OJ No L 170, 29.06.1984, p. 70. 
3 OJ No L 275, 29.09.1987, p. 1. 
4 OJ No L 129, 15.05.1981, p. 1. 
5 OJ No L 213, 04.08.1987, p. 32. 
A 
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In November 1988 the Commission received a request lodged on behalf of 
Quantum Chemical Corporation, a US producer/exporter, for a review of 
the ant I-dumping measures applicable to Imports of VAM originating in 
the United States of America. 
In this request, based on Article 14 of Regulation (EEC) 
No 2423/88, it was claimed that dumping was no longer talcing place and 
that the imports of VAM from the USA had ceased to cause injury to the 
Community Industry. The Commission considered that there was 
sufficient evidence to warrant a review of the measures. 
In view of the allegations made by the US producer/exporter and the 
consequent possibility that exports of VAM originating in Canada were 
also no longer being dumped or causing injury to the Community 
industry, the Commission considered it appropriate to extend the 
review to include imports of VAM originating in Canada to ensure that 
the duty would remain in force only to the extent necessary to 
counteract dumping which is causing injury. 
In 
of (2) The Commission, accordingly, announced by a notice I 
Journal of the European Communities6 the initiation 
anti-dumping measures concerning imports into the Commun 
acetate monomer originating in Canada and the United 
and commenced an investigation. 
(3) The Commission officially so advised the exporters and 
to be concerned, the representatives of the exporting 
complainants, and gave the parties directly concernée! 
to make known their views In writing and to request a the Official 
a review of 
ity of vinyl 
States of Amer ica 
importers known 
country and the 
the opportunity 
hearing. 
The Conseil Européen des Fédérations de rIndustrle Chimique (CEFIC), 
the Community producers of VAM, most exporters and 
some importers made their views known in writing. CEFIC and some 
importers requested and were granted hearings. 
OJ No C 105, 25.04.1989 p. 3 
$ 
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One of the largest free market consumers of VAM in the Community made 
Its views known In writing and requested and was granted a hearing. 
(4) The Commission sought and verified all information it deemed to be 
necessary for the purpose of its determination and carried out 
Investigations at the premises of the following companies: 
Co—unity producers: 
BP Chemicals Ltd, London, UK 
Montedipe Sri, Milano, Italy 
Wacker Chemie GmbH, Munich, Germany 
Rhône Poulenc SA, Paris, France 
CanadIan producer/exporter : 
Celanese Canada Inc, Toronto, Canada 
US producers/exporters: 
Hoechst Celanese Chemical Group, Dallas, USA 
Quantum Chemical Corporation, Cincinnati, USA 
Importers related to an exporter: 
Quantum Chemical Europe BV, Bave I, Holland 
Hoechst Celanese NV, Brussels, Belgium 
(5) The Investigation of dumping covered the period from October 1988 to 
March 1989 Inclusive. 
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B. QUJMpjUfi 
(I) Normal value 
(6) Normal value was established for all producers/exporters involved 
in the proceeding on the basis of the weighted average domestic 
price of sales to Independent customers. These prices were net of 
all discounts and rebates directly related to the sales of VAM. 
It was also established that domestic sales of the companies 
investigated In Canada and the USA were profitable. 
One exporter, however, did not provide details on Its 
profitability of domestic sales. The Commission considered that 
the data concerning profitability constituted an essential part of 
the Information needed and therefore informed the company that in 
the absence of such Information normal value would be established 
on the basis of the facts available in accordance with Article 
7(7)(b) of Regulation (EEC) No 2423/88. In this connection the 
Commission considered that the results of its investigation 
provided the most appropriate basis for determination of normal 
value and established normal value on the basis of the highest 
weighted average domestic price found for the exporters which did 
fulI y cooperate. 
do Export price 
(7) With regard to exports by Canadian and US producers/exporters directly 
to Independent Importers in the Community, export prices were 
determined on the basis of the prices actually paid or payable for the 
product sold. 
When exports to the Community were made to subsidiary companies, It 
was considered appropriate, in view of the relationship between 
exporter and Importer, that export prices be constructed on the basis 
of prices at which the imported product was first resold to an 
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Independent buyer. Discounts and rebates were, where appropriate, 
deducted from the price to the first independent buyer. Suitable 
adjustments were made to take account of all costs incurred between 
Importation and resale plus a 5% profit on sales turnover. 
One related importer disagreed with the rate of profit used by the 
Commission. However, the Council considered that 5% was a minimum 
profit required for an independent importer of a chemical product like 
VAM. Moreover a 5% profit had also been used during the previous 
review proceeding. 
Where cost allocations were necessary In constructing export prices 
these were made on the basis of turnover. The costs and turnover used 
for this purpose were generally those of the related Importers' last 
available financial year and accordingly based on audited accounts. 
C. COMPARISON 
(8) For the purpose of a fair comparison between normal value and export 
price and In accordance with Article 2(9) and (10) of Regulation (EEC) 
No 2423/88, the Council took account of differences affecting price 
comparability, such as differences In terms of sale, where claims of a 
direct relationship of these differences to the sales under 
consideration could be satisfactorily demonstrated. This was the case 
in respect of differences in transport, insurance, handling and 
ancillary costs, credit terms, commissions and salaries paid to 
salesmen. All comparisons were made at ex-works level. 
D. DUMPING MARGINS 
(9) Normal value, which was establIshed on a weighted average basis for 
each of the producers' domestic sales of VAM and In one case on the 
basis of the highest domestic price of another producer, was compared 
with the export prices on a transact ion-by-transact Ion basis. The 
examination of the facts showed that export prices exceeded normal 
value for every exporter Investigated In both Canada and the United 
States of America. 
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E. INJURY 
(10) In view of the above findings with respect to dumping it is considered 
unnecessary to deal with the issue of injury. 
F. TERMINATION 
(11) In the light of the above findings, it is concluded that in the 
absence of dumping, this review proceeding should be terminated and 
the ant I-dumping duties referred to under recital 1 should be 
repealed. 
The Community producers concerned were informed of the essential facts 
and considerations on the basis of which it was intended to terminate 
the review proceeding and were given the opportunity to comment. The 
industry considered that the situation prevalent during the 
investigation period was abnormal since prices in the market had 
increased abnormally following a shortage of raw materials and, 
consequently, of VAM. It was claimed that, once the shortage was 
eliminated from the market, this would lead to a recurrence of dumping 
and injury. The industry suggested therefore that the measures remain 
In force. 
After giving due consideration to the objections raised by the 
industry, however, it Is concluded that in the absence of any dumping 
throughout the Investigation period the proceeding should be 
terminated and the ant I-dumping measures repealed. 
(12) No objections to the termination of this proceeding were raised In the 
Advisory Committee. 
HAS ADOPTED THIS REGULATION: 
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Article 1 
Regulations (EEC) No 1826/84 and No 1282/81 are hereby repealed. 
Article 2 
The anti-dumping proceedings concerning Imports of vinyl acetate monomer 
originating In Canada and the United States of America and falling under CN 
code 2915 32 00 are hereby terminated. 
Article 3 
This Regulation shall enter Into force 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 11 Member States. 
Done at Brussels, For the Council 
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