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
Date: 1990-01-26
Institutions: European Commission
Subjects: United States, dumping, organic acid

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 

4 

5 

OJ  No L 129, 15.05.1981, p.  1. 

OJ  No L 213, 04.08.1987, p. 32. 

OJ  No C 105, 25.04.1989 p.  3 

I 

-  2 -

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. 

3 

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  d TO 

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 
2 
3 
4 
5 

OJ No L 209, 02.08.1988, p.  1. 
OJ No L 170, 29.06.1984, p. 70. 
OJ  No L 275, 29.09.1987, p.  1. 
OJ No L 129, 15.05.1981, p.  1. 
OJ  No L 213, 04.08.1987, p. 32. 

A 

-  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 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. 

(2)  The Commission,  accordingly,  announced  by  a notice I 
Journal  of  the  European  Communities6  the  initiation 

In 
of 
anti-dumping  measures  concerning  imports  into  the  Commun 

the Official 

a  review of 

ity of  vinyl 

acetate monomer  originating  in Canada  and  the  United 

States of  Amer ica 

and  commenced  an  investigation. 

(3)  The Commission  officially  so advised  the exporters  and 

importers  known 

to be concerned,  the representatives of  the exporting 

country  and  the 

complainants, and gave  the parties directly concernée! 

the opportunity 

to make known  their  views  In writing  and  to request  a 

hearing. 

The Conseil  Européen  des Fédérations de  rIndustrle  Chimique  (CEFIC), 

the Community  producers of  VAM,  most  e x p o r t e rs  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 

$ 

- 3 -

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. 

C 

-  4 -

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 

7 

-  5 -

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. 

- 6 -

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: 

- 7 -

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 

f\Q 

ISSN 0254-1475 

COM (90) 10 final 

DOCUMENTS 

EN 

il 

Catalogue number : CB-CO-90-042-EN-C 

ISBN 92-77-57134-9 

Office for Official  Publications of the European Communities 
L-2985 Luxembourg