PROPOSAL FOR A COUNCIL REGULATION ( EEC ) EXTENDING THE ANTI-DUMPING DUTY IMPOSED BY REGULATION ( EEC ) NO 3651/88 TO CERTAIN SERIAL-IMPACT DOT-MATRIX PRINTERS ASSEMBLED IN THE COMMUNITY
Date: 1989-09-12
Institutions: European Commission
Subjects: Japan, dumping, peripheral

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(89)  429  f i n al 

Brussels,  12  September  1989 

Proposal  f or  a 

COUNCIL  REGULATION  (EEC) 

extending  the  anti-clumping  duty  imposed  by  Regulation 

(EEC)  No  3651/88 

to  c e r t a in  s e r i a l - i m p a ct  dot-matrix  p r i n t e rs  assembled  in  the 

Community 

(presented by the Commission) 

Explanatory  Memorandum 

1.  In November  1988 the Commission  received  a complaint  from  the 

Commission  of  European  Printer Manufacturers, on behalf  of  Community 

producers of  serial-impact  dot-matrix  printers  (SIDM  printers) 

alleging  that  a number  of  companies  were assembling  SIDM  printers  in 

the Community  under  the conditions  referred  to  in Article  13(10) of 
Regulation  (EEC) No 2423/881  and were accordingly  circumventing  the 

anti-dumping  duty  Imposed  on SIDM printers originating  in Japan.  An 

Investigation was opened  by publishing a notice  in the Official 
Journal  of  the European  Communities2. 

2.  The assembly  operations concerned  were carried  out  by  the  following 

companI es : 

Brother  Industries Ltd.,  (United  Kingdom) 

Citizen Manufacturers  Ltd.  (United  Kingdom) 

Epson Telford  Ltd.  (United  Kingdom) 

Epson  Engineering  S.A.  (France) 

Fujitsu Espana  S.A.  (Spain) 

Matsushita  Electronic  Industrial  Co. Ltd.  (United  Kingdom) 

NEC Technology  Ltd.  (United  Kingdom) 

- 

OKI  Electric  Industries Ltd.  (United  Kingdom) 

Selkosha  (Europe) GmbH  (Germany) 

Star MI cronies Manufacturing Ltd.  (United  Kingdom) 

TEC Elektronik GmbH  (Germany) 

3.  All  companies  referred  to  In the second  paragraph  were  found  to be 

related  to or  associated  with  the Japanese manufacturers  whose 

exports of  SIDM  printers were  subject  to the definitive ant I-dumping 

duty.  Brother, Citizen, Fujitsu, Matsushita, OKI, Selkosha  and  TEC 

were  found  to have  reached  the required  threshold of  40% of  non-

Japanese parts  in value during  the overall  reference  period  and 

accordingly  no measures are proposed  for  these  companies. 

^0J  No L 209. 2.8.1988, p.1 . 
20J  No C  327, 20.12.1988, p. 8, p.  9-

A 

4.  The weighted  average value of-Japanese parts used  in the  assembly 

operations of  the remaining  companies were  found  to be as follows: 

Epson  France 62%, Epson UK 73%, NEC 68%, Star 98%. 

5.  Two of  these companies, Epson France and  Epson UK have  reached  the 

required  level of non-Japanese parts before  the end of  the  reference 

period and  have offered undertakings  to maintain or  Increase these 

levels  In the future.  These undertakings are considered  acceptable 

and accordingly  a duty  should not  be extended  to printers assembled 

by  these companies. 

6.  For  the remaining  companies, NEC and Star,  It  Is proposed  that  the 

ant I-dumping duty applicable  to exports to the Community  by  their 

respective parent  companies be extended  to models assembled  in the 

Community.  The  level of  duty proposed  is a fixed amount  per machine 

and amounts  to 3fl ECU  for NEC and 14 ECU for  Star. 

Ac 

-  1  -

Proposal for a 

COUNCIL  REGULATION  (EEC) 

extending the anti-dumping duty imposed by Regulation 
(EEC) No 3651/88 to certain serial-lmpaot dot-matrix 
printers assembled in the Community 

THE COUNCIL OP THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European 
Eoonomio 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 
Eoonomio Community  and  in particular Artiole 13(10) 
thereof, 

Having regard to the proposal submitted by the 
Commission after consultation within the Advisory 
Committee as provided for under the abovementioned 
Regulation, 

Whereas: 

A  PROCEDURE 

(1) In November 1988, the Commission received a 

complaint lodged by the "Committee of European 
Printer Manufacturers (EURO PRINT)" on behalf of the 
produoers of serial-impaot dot-matrix printers (SIDM 
printers) whose collective output represents a major 
proportion of Community production of the product in 
question. 

10J  No L 209, 2.8.1988, p. 1. 

/lA 

The complaint  contained  sufficient  evidenoe of the 

faot that, following  the opening  of the 

investigation concerning  SIDM printers  originating 
in Japan2,  which led to the adoption of Council 
Regulation  (EEC) No 3651/88 , 

imposing  a 

definitive anti-dumping  duty on imports of these 

products, a number  of companies were assembling  SIDM 

printers in the Community under the conditions 

referred  to in Article  13(10) of Regulation  (EEC) No 

2423/88. 

Accordingly, after consultation,  the Commission 

announced, by a notice published  in the Offioial 

Journal of the European Communities  ,  the 
initiation of an investigation under the said 

4 

Article  13(10) concerning  SIDM printers assembled  in 

the Community  by oompanies related to or associated 

with the following Japanese manufacturers whose 

exports were subjeot to a definitive anti-dumping 

duty: 

- Brother  Industries Ltd 

- Citizen Watch Co Ltd 
- Fujitsu Ltd 
- Juki Corporation 

- Matsushita Eleotrio Co 
- NEC Corporation 
- OKI Eleotrio Industry Co Ltd 
- Seiko Epson Corporation 
- Seikosha Co Ltd 
- Star Mloronios Co Ltd 
- Tokyo Eleotrio Company 

'OJ No C 111, 25.4.1987, p. 2. 
30J No L 317, 24.11.1988, p. 33. 
40J No C 327, 20.12.1988, p. 8. 

- 3 -

(2) The Commission so advised the companies concerned, 
the representatives of Japan and the complainants, 
and gave the parties directly concerned the 
opportunity to make known their views in writing and 
to request a hearing. 

(3) All the companies concerned and the complainants 

made their views known in writing and requested and 
were granted hearings by the Commission. 

(4) Following the opening of the investigation, it was 
established that no SIDM printers were assembled or 
produced in the Community by or on behalf of Juki 
Corporation. 

(5) No submissions were made by purchasers of SIDM 

printers assembled in the Community.  The Commission 
sought and verified all information it deemed 
necessary for the purpose of the assessment of the 
charaoter of the alleged assembly operations and 
carried out investigations at the premises of the 
following companies: 

- Brother Industries Ltd (United Kingdom) 
- Citizen Manufacturers Ltd (United Kingdom) 
- Epson Telford Ltd (United Kingdom) 
- Epson Engineering S.A.  (France) 
-  F u j i t su  Espafia  S.A. 
- Matsushita Electronic Industrial Co Ltd 

(Spain) 

(United Kingdom) 

- NEC Technology Ltd (United Kingdom) 
- OKI Electronic Industry Ltd. (United Kingdom) 
- Seikosha (Europe) GmbH (Germany) 
- Star Micronics Manufacturing Ltd 

(United Kingdom) 

- TEC Elektronik GmbH (Germany) 

4 -

(6)  Furthermore, the Commission carried out an 

investigation at the premises of some suppliers of 
components to some of the companies involved. 

(7)  The period of Investigation was from 1 July to 

31 December 1988. 

B.  Relationship or association with exporter 

(8)  All companies referred to in the fifth recital 

were found to be related to or associated with the 
Japanese manufacturers whose exports of  SIDM 
printers were subject to the definitive anti 
dumping duty Imposed by Regulation (EEC) No 
3651/88.  In fact these companies were found to be 
wholly or partially owned subsidiaries of the 
Japanese manufacturers mentioned above. 

C.  Production 

(9)  The Commission established that the assembly or 

production operations carried out by all the 
companies listed in the fifth recital had started 
or substantially inoreased after the opening of 
the anti-dumping investigation. 

5 -

(10)  One of the companies declared that a part of the 

SIDM printers produced during the reference period 
had been manufactured by components imported from 
Japan after the initiation of the original anti 
dumping investigation but before the introduction 
of the anti-dumping duty.  It olaimed that these 
printers should not be taken into account in the 
overall amount of the printers manufactured during 
the reference period. 

(11)  The Commission does not accept this view, since 

Artiole 13(10) refers specifically to products 
assembled or produced in the Community and to the 
parts and materials used there in.  Consequently, 
the overall amount of the SIDM printers actually 
produoed or assembled during the reference period 
was taken into account. 

D.  Parts 

(12)  The parts were identified aooording to the 

provisions of Artiole 13(10) of Regulation (EEC) 
No 2423/88.  It was requested by some companies 
that the Printed Cirouit Board (PCB) be considered 
as a composite item and consequently its value 
broken down into the values of its individual 
constituent parts.  Other oompanies submitted that 
the PCB should be considered as a single part and 
accordingly its value be determined as a whole. 
The Commission, after detailed examination, deemed 
it appropriate, in line with  previous practice, 
to consider the PCB, given the nature of its 
struoture, as a single part. 

- 6 -

(13)  As in previous oases, the value of the parts in 

question was generally determined on the basis of 
the companies' purohase prices of these parts when 
delivered to the faotories in the Community.  The 
relevant value is that of the parts and materials 
as they are used in the assembly operations, i.e. 
on an into factory basis.  In one case, it was 
established that the value supplied to the 
Commission for some parts imported from Japan 
corresponded to the parent oompany's purchase 
prioes in the Japanese market, adjusted to include 
the costs of transport and the customs duties 
paid.  This method of calculating the value of the 
Japanese parts cannot be aocepted since it does 
not refleot a reasonable profit and selling 
expenses for the selling oompany and therefore 
appears to be influenced by the relationship 
between the seller (parent oompany) and the buyer 
(subsidiary oompany).  Consequently an adjustment 
was made to take account of suoh elements. 

(14)  The origin of the parts was taken into aocount 

aooording to the provisions of Council Regulation (EEC) 
No 802/685. 

(15)  It was also requested by several companies that 

the oosts of production of certain items incurred 
by them in the Community be inoluded in the value 
of Community parts.  Where suoh items constituted 
parts or materials within the meaning of Article 
13(10)(a) of Regulation (EEC) No 2423/88 and where 
suoh parts had aoquired an origin other than 
Japanese in conformity with Regulation (EEC) No 
802/68, the inclusion of such costs in the value 
of non-Japanese parts was considered appropriate. 

5 0J No L 148, 28.6.1968, p. 1. 

- 7 -

(16)  For the following companies: 

- Brother 
- Citizen 
- Fujitsu 
- Matsushita 
- OKI 
- Seikosha 
- TEC 

the weighted average value of Japanese parts or 
materials for all models produced by them was 
found to be respectively such as not to exceed the 
value of all other parts or materials used by at 
least 50 %. 

Accordingly the anti-dumping duty cannot be 
extended to the SIDM printers assembled in the 
Community by those oompanies. 

(17)  For the other companies investigated the weighted 

average value of Japanese parts for all models 
produced was found as follows: 

- Epson Franoe 
- Epson UK 
- NEC 
- Star 

67 % 
73 % 
68 % 
98 % 

E  Other Clroumstanoes 

(18)  Consideration was given to other relevant 
circumstances with regard to the assembly 
operations referred to above, in aocordanoe with 
Artiole 13(10)(a) of Regulation (EEC) No 2423/88, 

- 8 -

(19)  As regards these aspeots, the amount of research 
and development and technology applied within the 
Community was generally minimal and related merely 
to assembly. 

F  CONCLUSION 

(20)  In view of the foregoing, it is concluded that the 

anti-dumping duty should be extended to certain 
SIDM printers assembled in the Community.  The 
amount of the duty to be colleoted, which takes 
the form of a flat-rate duty for eaoh company, was 
calculated in a manner to ensure that it 
corresponds to the percentage rate of the anti 
dumping duty applicable to the exporters in 
question, on the oif value of the parts or 
materials from Japan as established for the 
investigation period. 

G  UNDERTAKINGS 

(21)  The oompanies against whioh protective measures 

are considered necessary have been informed of the 
essential faots and considerations on the basis of 
whioh the present measures have been proposed. 
Certain of these companies offered undertakings 
referring in particular to the attainment of a 
oertain proportion of parts originating in the 
Community.  The undertakings offered by Epson 
France and Epson UK are considered acceptable by 
the Commission whioh is publishing a Decision to 
that effeot.  The anti-dumping duty should 
accordingly not be extended to SIDM printers 
assembled in the Community by these oompanies. 

- 9 -

The Commission will examine the acceptability of 
any further undertakings offered and proceed to 
the necessary verification as soon as it has been 
informed by the companies concerned that the 
conditions qualifying the present extension of the 
anti-dumping duty to assembled products have been 
removed.  Satisfactory guarantees should also be 
given that these conditions would not recur in the 
future. 

HAS ADOPTED THIS REGULATION: 

Artiole 1 

1.  The definitive anti-dumping duty imposed by 

Regulation (EEC) No 3651/88 on imports of serial-
impact dot-matrix printers incorporating a print 
system by needles originating in Japan is hereby 
Imposed on serial-impaot dot-matrix printers 
inoorporating a print system by needles, falling 
within CN Code ex  8471 92 90, introduced into the 
commeroe of the Community after having been 
assembled or produoed in the Community by: 

- NEC Technology Ltd (UK) 
- Star Mioronics Manufacturing Ltd (UK) 

2.  The  rate  of  duty  shall  be  as  s et  out  below  per  unit 

assembled  or  produced  by  the  companies  concerned: 

-  NEC Technology  Ltd (UK) 
30 ECU 
-  Star  Mioronios  Manufacturing  Ltd  (UK)  14  ECU 

- 10 -

Article 2 

1.  Parts and materials suitable for use in the assembly 
or production of SIDM printers by the companies 
referred to in Artiole 1(1) and originating in Japan 
can only be considered to be in free circulation in 
so far as they will not be used  in the assembly or 
production  operations  referred to above. 

2.  SIDM printers thus assembled or produced shall be 

deolared to the oompetent authorities before leaving 
the assembly or production plant for the 
introduction into the commerce of the Community. 
For the purposes of levying an anti-dumping duty 
this deolaration shall be considered to be 
equivalent to the deolaration referred to in 
Article 2 Of  Council Directive 79/695/EEC6-

3.  The provisions in foroe concerning customs duties 

shall apply. 

Artiole 3 

This Regulation shall enter into foroe on the day of its 
publication in the Offioial Journal of the European 
Communities. 

This Regulation shall be binding in its entirety and 
direotly applicable in all Member States. 

Done at Brussels, 

For the Council 

^)J No L 205, 13.8.1979, p. 19. 

ISSN 0254-1475 

COM(89) 429 final 

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