Proposal for a COUNCIL REGULATION ( EEC ) amending Regulation ( EEC ) No 112/90 imposing a definitive anti-dumping duty on imports of certain compact disc player originating in Japan and the Republic of Korea
Date: 1992-03-05
Institutions: European Commission
Subjects: Japan, South Korea, dumping, sound reproduction equipment

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

COM(92) 83 final 

Brussels, 5 March  1992 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

amending  Regulation  (EEC) No  112/90  imposing  a definitive 

ant I-dumping duty on  imports of certain compact  disc 

player  originating  in Japan  and  the Republic of  Korea 

(presented  by  the  Commission) 

l/91/92-EN 

Explanatory  memorandum 

1.  Council  Regulation  (EEC) No 112/90  Imposed  definitive  anti-dumping 

duties on  imports of certain  compact  disc players originating  In Japan and 

the Republic of Korea  and  falling within Taric code 8519991010. 

2.  One of  the Member  States has drawn  the Commission's  attention  to the 

fact  that  Article  1(1) of Regulation  (EEC) No 112/90,  In conjunction  with 

the customs  rules  In force on compact  disc players  Incorporated  in a 

"rack", might  have consequences which were not  desired  by  the Council  when 

It adopted  the Regulation.  Firstly, compact  disc players which  are not 

regarded  as conferring  Its main characteristic on  the  "rack"  In which  they 

are  incorporated  would  escape  the anti-dumping  duty  because  they are 

classified  In a code other  than Taric code 8519991010 and, consequently, 

would  fall outside  the scope of  the Regulation.  Secondly, where  a  "rack" 

is assumed  to derive  Its principal  characteristic  from  the compact  disc 

player,  the  relevant  anti-dumping  duty  is based on  the  total  value of  the 

rack and not, as provided  In the Regulation,  just on  the value of  the 

compact  disc  player  component  alone. 

3.  In order  to correct  this anomaly  the Commission  proposes  that 

Regulation  No  112/90 should  be amended  so as  to give  full  effect  to the 

Council's  Intentions when  It adopted  that  Regulation.  This would  mean: 

(1)  bringing  compact  disc players which  escape  the duty  owing  to their 

classification within  the scope of  Regulation  (EEC) No  112/90; and 

(2)  limiting  the ant I-dumping  duty on  racks  to an amount  calculated 

according  to the value of  the  Incorporated  compact  disc  player 

alone. 

4.  The Ant I-Dumping Committee  has been consulted on  this proposal;  no 

objection  was  raised. 

COUNCIL REGULATION (EEC) NO 

/ 

Of 

amending Regulation (EEC) No 112/90 Imposing a definitive 

ant I-dumping duty on  Imports of certain compact disc 

player originating  in Japan and the Republic of Korea 

3 

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 

Having regard to the proposal submitted by the Commission after 

consultation within the Advisory Committee as provided for under the above 

Regulation, 

Whereas: 

(1) 

Regulation (EEC) No 112/902  imposed a definitive anti-dumping duty 

on  Imports of certain compact disc players originating  in Japan and 

the Republic of Korea.  Article 1(1) of the Regulation  laid down 

its scope and, with great precision, the products affected by the 

anti-dumping duty.  The scope  Includes compact disc players falling 

within CN code ex 8519 99 10 (Tarlc code:  85 1999 10*10), 

including those which may be incorporated  In a "rack" but are 

nevertheless capable of operating alone, separately from the 

"rack", by means of their own controls and power supply. 

1  0J No L 209, 2.8.1988, p. 1. 
2  0J No L 13, 17.1.1990, p. 21. 

-  2 -

7 

(2) 

CN code ex 8519 99 10 (Taric code:  8519 99  10*10),  however, only 

Includes a compact  disc player  incorporated  in a rack  insofar  as It 

gives  the  "rack"  its essential  character.  In other  cases,  I.e. 

where another  apparatus gives  the assembly  its essential  character, 

the entire  "rack"  Is classified  under  a different  tariff  heading 

and  consequently  falls outside  the scope of  Regulation  (EEC) 

No  112/90. 

Conversely, where  the compact  disc player  Is considered  to give  the 

"rack"  Its essential  character,  the entire  set  of  apparatus  Is 

classified  under  CN code ex  8519 99 10  (Tarlc code: 8519 99  10*10) 

and  the anti-dumping  duty  is applied  to the value of  the entire 

"rack" and not  Just  to the value of  the compact  disc player 

component. 

(3) 

Combined  application of  the customs  rules and Article  1(1) of 

Regulation  (EEC) No  112/90 results  In the Regulation  being 

implemented  in a way which  deviates  from  the aims which  the Council 

assigned  to  it.  Regulation  (EEC) No  112/90 was designed  In 

particular  to make compact  disc players  incorporated  In a  "rack" 

subject  to an anti-dumping  duty, whether  or  not  they gave  the 

"rack"  its essential  character.  Furthermore,  that  Regulation  was 

not  designed  to make a "rack"  Incorporating  a compact  disc  player 

subject  to an ant I-dumping  duty on  the basis of  Its total  value but 

on  the basis of  the value of  the compact  disc player  alone. 

(4) 

Consequently  Article  1 of Regulation  (EEC) No  112/90 must  be 

amended. 

(5) 

It  is necessary  to that  end  to take account  of  the  fact  that a 

"rack"  Incorporating a compact  disc player  may  be classified  under 

CN codes ex 8519 31 00, ex  8519 39 00, ex 85  19 99 10, 

ex 8520 31 90, ex 8520 39 10, ex 8520 39 90 and ex  8527 31 91 

(Tarlc codes 8510 31 00*10, 8519 39 00*10, 8519 99 10*10, 

8520 31 90*30, 8520 39 10*10, 8520 39 90*10 and 8527 31  91*10) 

according  to the component  which  gives  It  Its essential  character. 

- 3 -

J~ 

(6) 

To ensure uniform application of the Regulation the amendment must 

take effect as from 17 January 1990, the date of entry  Into force 

of Regulation (EEC) No 112/90.  However, Article 13(4)(a) of 

Regulation (EEC) No 2423/88 lays down that ant I-dumping and 

countervailing duties shall be neither  Imposed nor  increased with 

retroactive effect, subject to Article 13(4)(b), which does not 

apply to the case In point.  Consequently, the amendment may not 

enter  into force with retroactive effect as regards the Imposition 

of a definitive anti-dumping duty on Imports of certain compact 

disc players falling within CN codes ex 8519 31 00, ex 8519 39 00, 

ex 8520 31 90, ex 8520 39 10, ex 8520 39 90 and ex 8527 31 91 

(Tarlc codes:  8519 31 00*10, 8519 39 00*10, 8520 31 90*30, 

8520 39 10*10, 8520 39 90*10 and 8527 31 91*10), 

HAS ADOPTED THIS REGULAT ION : 

Article 1 

Article 1(1) of Regulation (EEC) No 112/90 Is hereby replaced by the 

fol lowing text: 

"A definitive anti-dumping duty  Is hereby  Imposed on  Imports of certain 

compact disc players falling within CN codes ex 8519 31 00, ex 8519 39 00, 

ex 85 19 99 10, ex 8520 31 90, ex 8520 39 10, ex 8520 39 90 and 

ex 8527 31 91 (Taric codes 8519 31 00*10. 8519 39 00*10, 85 19 99 10*10, 
8520 31 90*30, 8520 39 10*10, 8520 39 90*10 and 8527 31 91*10).1  I.e. 

stand-alone sound reproducers with a laser optical reading system and with 

1  The Tarie codes shown are those applicable on the date on which this 

Regulation enters  into force. 

-  4 -

external  dimensions of  at  least  216 x 45 x 150 mm,  equipped  to  accommodate 

up  to a maximum  of  ten compact  discs,  including  sound  reproducers which may 

be  incorporated  in a "rack" system  but  can nevertheless  operate  alone 

separately  from  the  "rack", with  their  own  controls  and  power  supply, 

functioning  with AC mains  supply of usually  110/120/220/240V  and not 

capable of operating  with  a power  supply of  12V DC or  less, originating  In 

Japan  and  In the Republic of Korea." 

Paragraph  4 of  the same Article  Is hereby  replaced  by  the  following  text: 

"Where  the compact  disc player  is combined  with other  apparatus  to form a 

"rack", the  free-at-front1er  value used  in applying  the anti-dumping  duty 

shall  be  that  of  the compact  disc player  alone. 

If this value  is not  specified  on  the  Invoice  the  Importer  shall  declare 

the value of  the player  at  the time of  release  for  free circulation  and 

shall  submit  appropriate evidence  and  Information on  that  occasion." 

The  former  paragraph  4 of  the same Article becomes paragraph  5. 

Article  2 

This Regulation  shall  come  Into force on  the day  following  Its publication 

In the  Official 

Journal  of  the  European Communities. 

It shall  apply with effect  from  17 January  1990 save as regards  the 

imposition  of  a definitive  anti-dumping  duty on  Imports of  certain  compact 

disc players  falling within CN codes ex 8519 31 00, ex 8519 39 00, 

ex 8520 31 90, ex 8520 39 10, ex 8520 39 90 and 8527 31 91  (Tarlc codes: 

8519 31 00*10, 8519 39 00*10, 8520 31 90*30, 8520 39 10*10, 8520 39 90*10 

and 8527 31  91*10), 

- 5 -

-^ 

However, the provisions of Article  15 of Regulation  (EEC) 2423/88 shall 

apply  from  17 January  1990 to compact  disc players falling within  the code 

numbers  listed above. 

This Regulation shall  be binding  In  its entirety  and directly epplicable in 

a 11 Member  States. 

Done at Brussels, 

1992. 

For  the CounciI 

The President 

? 

ISSN 0254-1475 

COM (92) 83 final 

DOCUMENTS 

EN 

ii  02 

Catalogue number : CB-CO-92-085-EN-C 

ISBN 92-11A1121-1 

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