PROPOSAL FOR A COUNCIL REGULATION (EEC) IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON IMPORTS OF BARIUM CHLORIDE ORIGINATING IN THE PEOPLE' S REPUBLIC OF CHINA
Date: 1991-02-07
Institutions: European Commission
Subjects: China, anti-dumping duty, chemical salt, import

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC91) 15 final 

Brussels,  7 February 1991 

Proposal for a 

COUNCIL REGULATION  (EEC) 

imposing  a  d e f i n i t i ve  a n t i - d u m p i ng  duty  on  imports  of 

barium chloride originating  in the 

People's  Republic  of  China 

(presented  by  t he  Commission) 

- 2 -

EXPLANATORY  MEMORANDUM 

1.  By Regulation  (EEC) No 2402/89  the Commission  imposed  a provisional 

anti-dumping  duty on  imports of barium  chloride originating  in the 

People's Republic of China and  the territory  then known as the German 

Democratic  Republic^1). 

2.  This duty was extended  for a period not exceeding  two months by 

Council  Regulation  (EEC) No 3555/89<2>. 

3.  The exporters requested  and were granted  a hearing.  They also put 

their  arguments  In writing. 

4.  The Commission  took  into consideration all  the views expressed  before 

arriving  at  its final  conclusions. 

5.  The Commission  also took  Into consideration  the fact  that  the 

proceeding  concerning  the German Democratic  Republic  has become 

without  object  as a result of  the unification of  the GDR with  the 

Federal  Republic of Germany on 3 October  1990. 

6.  In accordance with Article  12 of Council  Regulation  (EEC) No 2423/88, 

the Commission  proposes  that  the Council  impose a definitive anti 

dumping  duty on  imports of barium  chloride originating  in the 

People's Republic of China. 

(1)  OJ  No L 227, 4.8.1989, p. 24. 
(2)  OJ No L 349, 30.11.1989, p.1. 

-  3 -

Proposal  for a 

COUNCIL REGULATION  (EEC) 

Imposing a definitive antI-dumping duty on  imports of 

barium chloride originating  in the 

People's Republic of China 

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  Community*1) and  in particular  Article 

12 thereof, 

Having  regard  to  the  proposal  from  the  Commission,  submitted  after 

consultation  within  the Advisory  Committee  as provided  for  in the  above 

Regulation, 

Whereas: 

I.  PROCEDURE 

A.  PROVISIONAL  MEASURES 

(1)  By  Regulation  (EEC) No 2402/89  the Commission  imposed  a provisional 

antI-dumping  duty  on  imports of  barium  chloride originating  in the 

People'3  Republic  of  China  and  the  German  Democratic  Republic*2*. 

This  duty  was  extended  for  a  period  not  exceeding  two  months  by 

Council  Regulation  (EEC) No 3555/89<3>. 

(1)  OJ No L 209, 2.8.1988, p.1. 
(2)  OJ No L 227, 4.8.1989, p. 24. 
(3)  OJ No L 349, 30.11.1989, p.1. 

-  4 -

B.  SUBSEQUENT PROCEDURE 

(2)  Following  imposition  of  the  provisional  anti-dumping  duty,  the 

exporters of  the product  in question requested, and were granted, an 

opportunity  to  present  their  case.  They  also  made  written 

submissions. 

(3)  The  parties  were  given  and  made  use  of  every  possibility  of 

exercising  the  rights  provided  for  in Article  7  (4) of  Regulation 

(EEC) No 2423/88. 

(4)  The  Commission  took  into  consideration  all  the  views  put  forward 

before arriving  at  its final  conclusions, which  are endorsed  by  the 

Counc iI. 

C.  SITUATION CONCERNING THE TERRITORY OF THE 

GERMAN  DEMOCRATIC REPUBLIC 

(5)  On  3 October  1990 the abovementioned  territory  formally  became part 

of  the Federal  Republic of Germany  and, as a consequence, became an 

integral  part  of  the  Community.  Since  Regulation  (EEC) No  2423/88 

lays  down  provisions  for  protection  against  dumped  or  subsidised 

imports  from  countries  not  members  of  the  European  Community,  it 

follows  that  the  anti-dumping  proceeding  concerning  imports  of 

barium  chloride  originating  in  the  abovementioned  territory  no 

longer has any  legal basis and  is therefore without object. 

-  5 -

D.  PRODUCT COVERED BY THE  INVESTIGATION 

AND LIKE  PRODUCTS 

(6)  in  Regulation  (EEC)  No  2402/89  the  Commission  drew  a  distinction 

between  the  crystallized  and  anhydrous  forms of  barium  chloride  but 

further  investigation  after  the  imposition  of  the  provisional  duty 

has caused  this distinction  to be  dropped. 

(7)  Examination  of  the  physical  characteristics of  the  two  forms  of  the 

product  shows  that  the  differences  are  negligible.  Their  chemical 

formula  is  the  same,  apart  from  the  presence  of  water  molecules  in 

the crystallized  form, which  can be changed  to the other  form  simply 

by  drying.  The  two  forms  even  look  similar:  the  colour  is  the 

same,  the  crystals  are  the  size  of  grains  of  sand  while  the 

anhydrous product  is a powder, and  the packing  is almost  identical. 

(8)  The  numerous  applications  of  crystallized  barium  chloride  do  not 

allow  any  final  conclusions  on  this  factor.  While  anhydrous  barium 

chloride  has more  specific  applications,  this can  hardly  lead  to the 

conclusion  that  there  is a distinct  market  for  this product  since  it 

is  so  easily  manufactured  from  the  crystallized  form.  The  market 

for  the  anhydrous  product  Is  thus  also  an  outlet  for  producers  of 

the crystallized  product.  This being  so, anhydrous  and  crystallized 

forms of  barium  chloride  constitute one  product  for  the  purposes  of 

this  proceeding. 

(9)  The  barium  chloride  produced  by  the Community  industry  is  identical 

to that originating  in the People's Republic of  China. 

E.  DUMPING 

a. 

Normal  value 

(10) Since  the  People's  Republic  of  China  is  a  non-market  economy,  the 

normal  value  was  established  in  the  preliminary  investigation,  in 

accordance  with  Article  2(5)  of  Regulation  (EEC)  No  2423/88,  by 

-  6  -

using  the  price  at  which  a  like  product  is sold  in a  third  country 

having  a  market  economy.  The  United  States  was  chosen  for  this 

purpose  for  the reasons and under  the conditions set out  in recitals 

10 to 13 of  Regulation  2402/89. 

(11) However,  since  it was  not  possible,  for  reasons  beyond  the  control 

of  the  Commission,  to  verify  US  market  prices  on  the  spot,  another 

solution  had  to  be  found.  The  numerous  efforts  to  do  so  included 

contacts  with  a  great  number  of  barium  chloride  producers  of  a 

certain  size  in  other  countries  as  well  as  with  local  authorities 

which  were  approached  to  obtain  the  cooperation  of  the  firms 

contacted.  These efforts, however  bore no  fruit  within  a  reasonable 

per iod of  time. 

(12)  In  view  of  these  difficulties,  the  Commission  was  obliged  to 

establish  the  normal  value  by  using  the  price  payable  in  the 

Community,  duly  adjusted  to  include a profit margin of  less than  10% 

corresponding  to  that  of  the  most  efficient  company  in  the  sector, 

In accordance with  Article  2(5) of  Regulation  (EEC) No 2423/88.  The 

two  exporters  concerned  were  notified  of  this  decision.  While  the 

Chinese  exporter  had  objected  to  the  choice  of  the  United  States  as 

a  reference  country,  no  objection  was  raised  against  the  use  of 

Community  prices as a basis  for  establishing  the normal  value. 

b. 

Export  price 

(13) The  export  price  for  the  purpose  of  applying  the  provisional 

measures  was  established  on  the  basis  of  information  published  by 

Eurostat  since  the Chinese exporter  failed  to  reply. 

(14)  In  the  final  stage  of  the  investigation,  the  Commission  received 

some  information  on  the  prices  and  terms  of  payment  of  this 

exporter.  Although  incomplete,  it  supported  the  conclusions  drawn 

at  the  time  the provisional  measures were  imposed,  notably  those set 

out  in recital  14 of  Regulation  2402/89. 

-  7 

-

c. 

Comparison 

(15)  In  comparing  normal  value  with  export  prices  in  the  case  of  the 

Chinese  exporter,  the  Commission  took  account,  where  this  seemed 

appropriate,  of  differences  affecting  price  comparability,  in 

particular  terms  of  payment  and  the  cost  of  transport  from  the 

exporter's  works  to  the  Community  frontier.  These  adjustments  were 

calculated  on  the  basis  of  information  obtained  in  the  preliminary 

investigation and confirmed  in the final  stage of  the  investigation. 

(16) All  comparisons were made at  the ex-works stage. 

(17) The margin  was  established  by  comparing  the  relevant  monthly  normal 

value with  export  prices  as established  by  Eurostat  by month  and  by 

Member  State. 

d. 

Dumping  margin 

(18) The  conclusions  of  the  preliminary  investigation,  showing  that 

exports  to  the  Community  of  barium  chloride  originating  In  the 

People's  Republic  of  China  were  being  dumped,  were  confirmed.  The 

dumping  margin  corresponds  to  the  difference  between  the  normal 

value established  and  the export  price  to the  Community. 

(19) On  the  basis  of  the  free-at-frontier  price,  the  dumping  margin  is 

50.13% for  imports originating  in the People's Republic of  China. 

(20) The  Council  endorses  the Commission's  conclusions  with  reference  to 

the People's Republic of China  set out  in recitals  10 to 19. 

F.  INJURY 

(21) As  the proceeding  with  regard  to  the German  Democratic  Republic  has 

become  without  object  for  the  reasons  stated  in  recital  5,  the 

Commission  has  examined  whether  the  imports  of  barium  chloride 

originating  in  the  People's  Republic  of  China  were,  taken  in 

isolation,  causing  or  threatening  to  cause  injury  to  the  Community 

industry. 

- 8 -

(22) In this  connection,  particular  consideration  has  been  given  to  the 

volume  and  evolution  of  these  imports,  the  degree  by  which  they 

undercut  the prices charged  by Community  producers as well  as to the 

production  capacity  in  the  People's  Republic  of  China  and  the 

Chinese  export  policy  towards  other  third  country  markets.  The 

findings  made  in  this  regard  (recitals  20  to  33  and  35  to  44  of 

Regulation  (EEC)  No  2402/89),  which  are  not  contested  by  the 

exporter,  lead to the conclusion  that even when  the  imports  from the 

German  Democratic  Republic  are  disregarded,  the  imports  of  barium 

chloride  originating  in  the  People's  Republic  of  China  must  be 

considered  as  causing  and  threatening  to  cause  injury  to  the 

Community  industry. 

(23) The Chinese  exporter  has continued  to deny  that  it  is the source of 

injury or  threat  of  injury  in this matter.  Its arguments, however, 

cannot  be accepted  for  the following reasons. 

(24) With  regard  to the argument  that  the prices of Chinese  exports  have 

rarely  been  below  the minimum  price  laid down  by Council  Regulation 

(EEC)  No  2370/83<4)  and  regardless  of  the  lack  of  complete  and 

fully  reliable  documentation  on  the  subject,  the  Commission  notes 

that  compliance  with  a  measure  is not  in  itself  a  guarantee  that 

dumping  is not  taking  place  nor  that  injury  is not  being  caused  by 

such dumping. 

(25) With  regard  to  the  cost  of  raw  materials  and  labour,  cited  as 

grounds  for  low export  prices,  the Commission  points  out  that  this 

argument  is not  pertinent  to  the  establishment  of  injury  and  does 

not obviate  the undercutting  referred  to  in recital  24 of  Regulation 

No 2402/89. 

(26) As to the Chinese exporter's argument  that  the volume of exports had 

fallen  since  the  imposition  of  definitive  anti-dumping  duties  in 

1983,  it should  be noted  that, while this  is a normal  consequence of 

trade  protection  measures,  the  exporter  was,  nevertheless,  able  to 

retain  a  sizeable  share  of  the  Community  market  despite  these 

measures. 

(4)  OJ No L 228, 20.8.1983, p. 28 

- 9 -

(27) Under  these  conditions,  the  Council  confirms  the  above  conclusions 

and  those  set  out  in  Regulation  2402/89  concerning  injury  (see 

recitals  20  to  39, with  the  exception  of  Recital  34) and  threat  of 

injury  (see  recitals  40 to 44). 

G.  COMMUNITY  INTEREST 

(28) The  Council  confirms  the  findings  and  conclusions  set  out  in 

recitals  45,  46,  47, 49,  51  and  52 of  Regulation  (EEC) No  2402/89. 

The  Council  considers  that  ensuring  the  survival  of  the  Community 

firms will  be beneficial  for  competition on  the Community  market  and 

that  the disappearance  of  a major  part  of  Community  production  would 

pose a threat  to the supplies of  Community  consumers.  The  interests 

of  the Community  therefore  call  for  intervention. 

II.  DEFINITIVE  DUTY 

(29)  In  view  of  the  injury  caused  and  the  threat  of  injury  to  the 

Community  industry  as  a  result  of  imports  originating  in  the 

People's  Republic  of  China  since  the  lapsing  of  measures  in  August 

1988,  the  Council  concludes  that  a  definitive  ad  valorem  anti 

dumping  duty must  be  imposed. 

(30) With  regard  to the amount  of  duty  necessary  to remove  the  injury  and 

threat  of  injury,  the Commission  has  taken  account  of  both  the price 

of  the  imports  concerned  and  the  minimum  selling  price  which  would 

enable  Community  producers  to  cover  production  costs  during  the 

investigation  period,  plus  a  reasonable  profit  margin  that  is 

calculated  on  the  basis  of  the  profit  margin  of  the  most  efficient 

producer  before  increased  penetration  of  dumped  exports.  These  two 

prices,  duly  adjusted  to  allow  for  the  importer's  commission  and 

customs  duty, were  compared.  The difference  between  the  two prices, 

expressed  as a percentage  of  the  cif  value  of  export  prices,  is the 

percentage  by  which  the  prices  have  to  be  raised  to  remove  the 

injury  and  threat  of  injury  and  stands  at  25.8% of  the  net  free-at-

Community-frontier  price before  duty.  The Council  agrees with  these 

considerations. 

-  10  -

III.  COLLECTION  OF  THE  PROVISIONAL  DUTY 

(31)  In  view  of  the  difficulties  encountered  in  establishing  the  normal 

value,  the  final  investigation  was  not  completed  within  the  time-

limits  laid  down  in Article  11  (5)  of  Regulation  (EEC)  No  2423/88. 

The  Council  therefore  notes  that  the  amounts  secured  by  the  anti 

dumping  duty  are  released, 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

1. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of 

barium  chloride  falling within  CN  code  2827  38 00 and  originating  in 

the  People's  Republic of  China. 

2. 

The  amount  of  the  duty  shall  be  equal  to  25.8% of  the  net  free-at-

Community-frontier  price  before  duty. 

3. 

The  provisions  in force with  regard  to customs  duties  shall  apply. 

Article  2 

This  Regulation  shall  enter  into  force  on  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 I I Member  States. 

Done  at  Brussels, 

For  the  Council 
The  President 

ISSN 0254-1475 

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