Proposal for a COUNCIL REGULATION (EEC) amending Council Regulation (EEC) No 1768/89 in respect of definitive antidumping duty on certain imports of video cassettes originating in Hong Kong
Date: 1992-10-30
Institutions: European Commission
Subjects: Hong Kong, anti-dumping duty, dumping, video cassette

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COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(92) 452 final 

Brussels, 30 October 1992 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending Council Regulation  (EEC) No 1768/89 

In respect of definitive antidumping  duty on certain  Imports 

of video cassettes originating 

In Hong Kong 

(presented by the Commission) 

_ >4 «9- — 

EXPLANATORY  MEMORANDUM 

(1)  By Regulation  (EEC) No 1768/89, the Council  imposed  a definitive 

anti-dumping  duty of  21.9% on  Imports of VHS video  tape  In cassettes 

originating  in Hong Kong. 

(2)  By a notice published  the 8 April  1992 the Commission  initiated a 

review of  the anti-dumping  duty concerned  as regards a Hong  Kong 

company,  Inter-Cassette  (Hong Kong) Ltd. 

(3)  The  investigation showed  that  Inter-Cassette  (Hong Kong) Ltd  had 

begun  to export  own produced  video cassettes  to the  European 

Community  after  the entry  into force of  the above  Regulation. 

(4)  Normal  value was determined on  the basis of  the domestic price of 

the mode Is concerned. Export  price was based on  the actual  price 

paid or payable  for export. The dumping margin established  was  1,4%. 

(5)  Such  a dumping margin was considered  as being  de minimis  in the 

original  Council  Regulation  (EEC) No  1768/89 for  Import  of  video 

tape on  reels originating  In the Republic of  Korea. 

(6)  In conclusion,  It  Is proposed  that  the Council  amends  Its Regulation 

(EEC) n*  1768/89 and exempts  inter-Cassette  (Hong Kong) Ltd  from  the 

definitive ant I-dumping duty  Imposed on VHS video tapes  In cassettes 

originating  In Hong Kong. 

- >-

Proposal  for a 

COUNCIL REGULATION (EEC) 

amending Council Regulation (EEC) No 1768/89 

In respect of definitive antidumping duty on certain  Imports 

of video cassettes originating 

In Hong Kong 

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 14 thereof. 

Having regard to the proposai submitted by the Commission after 

consultation within the Advisory Committee as provided  for under  the 

above Regulation, 

Whereas: 

I - PREVIOUS PROCEDURE 

(1)  By Regulation  (EEC) No 1768/89<2), as amended by Regulation  (EEC) 

No 3522/90<3>, Regulation  (EEC) No 1292/92<4> and Regulation  (EEC) 

No 1769/92(5). the Council  Imposed a definitive ant I-dumping duty 

of 21.9% on  Imports of VHS video tape  In cassettes  (hereafter  "video 

cassettes") falling within code ex 8523 1300 originating  in Hong 

Kong, with the exception of  Imports from several  exporters 

(1)  OJ no. L 209, 02.08.1988, p. 1. 
(2)  OJ No L 174, 22.06.1989, p. 1. 
(3)  0J No L 343, 7.12.1990, p.1. 
(4)  0J No L 139, 22.5.1992, p.1. 
(5)  0J No L 182,2.7.1992, p.6. 

-  2 -

especially  mentioned  which were subject  to a  lesser  rate of  duty or 

exempt  from  duty. 

(2)  In recital  43 of Regulation  (EEC) N' 1768/89, concerning  Companies 

which  started or will  start exporting own-produced  video  cassettes 

to the Community  after  the  Investigation period  (newcomers),  the 

Council  noted  that  the Commission  was ready  to  initiate  without 

delay  a review proceeding  If the exporting  company  could  show  the 

Commission,  and supply sufficient  evidence,  that  It did  not  export 

the products concerned  to the Community  during  the period of 

investigation.  The company  also has  to demonstrate  that  it started 

or will  start  those exports after  the said period  and  that  It  Is 

not  related  to or  associated with any of  the companies  subject  to 

the  Investigation. 

M  - REVIEW 

(3)  By  a notice published on 8 April  1992(3),  the Commission,  after 

consultation  with  the Advisory  Committee  and  In accordance  with 

Article  14 of Regulation  (EEC) No 2423/88  Initiated  a review of 

Regulation  (EEC) No 1768/89 as  It concerned  a Hong  Kong  company, 

Inter-Cassette  (Hong Kong) Ltd. This company  had  submitted  that  It 

did  not  export  the products subject  to the ant I-dumping duty  during 

the previous period of  Investigation  (1 January  -  30 November  1987) 

but  that  they started  such exports after  the said  period.  In 

addition,  It submitted  that  It was not  related  with  any of  the 

companies  subject  to the previous  Investigation  for which  dumping 

was  found. Accordingly,  the Commission  commenced  an  Investigation  In 

order  to verify whether  Inter-Cassette  (Hong Kong) Ltd. could  be 

considered  as a newcomer  and  to establish a dumping  margin,  if any, 

for  this  company. 

(6)  0J  No C 266 Of  12/10/1991, p. 7. 

-  3 -

III -  RESULTS OF THE  INVESTIGATION 

1. Newcomer 

(4)  The  investigation showed  that  inter-Cassette  (Hong Kong) Ltd  began 

to export  own-produced  video cassettes to the Community  after  the 

previous  Investigation period mentioned  in recital  3.  In addition, 

It was  found  that  this company  had no  link of  any sort  with  the 

exporters  Involved  in the previous procedure and  for which  dumping 

was found.  The Council  confirms that  It should accordingly  be 

considered as a newcomer  and  that a partial  review of  Regulation 

(CEE) No 1768/89 as  It concerned  inter-Cassette  (Hong Kong) Ltd was 

warranted. 

2.  Normal  value 

(5)  As  Inter-Cassette  (Hong Kong) Ltd did sell  video cassettes on  the 

domestic market  In sufficient  quantities during  the  investigation 

period  for  this review, and at prices which permitted  recovery of 

all  costs, normal  value was determined on the basis of  the weighted 

average domestic prices for  the models exported  to the  Community. 

3. Export  price 

(6)  Export  prices were determined by  the Commission  on  the basis of  the 

prices, net of all  rebates, actually paid or  payable  for  the video 

cassettes sold  for export  by  Inter-Cassette  (Hong Kong) Ltd  to the 

Community.  Indeed, since exports were made directly  to  Independent 

Importers  In the Community,  these export  prices were  found  to be 

rellable. 

The Council  confirms  this finding. 

- 4 -

4. comparison 

(7)  For  the purpose of  a fair comparison between  normal  value and  export 

price,  the Commission  took account  of  differences  affecting  price 

comparability  in accordance with Article  2  (9) and  (10) of 

Regulation  (EEC) No ?4rë3/88.  All  comparisons  were made at  ex-works 

level, at  the same  level of  trade and,  for  the export  price, on a 

transaction by  transaction  ba?i3. 

The examination of  the facts shows the existence of  dumping,  the 

margin of dumping  being equal  to the amount  by which  normal  value 

exceeds  the price  for export  to the Community  and, as expressed  as a 

percentage of  total  c.l.f. value, was  1,4 X. 

The Council  confirms  the above findings. 

5. Measures 

(8)  A dumping  margin of  1,4% was considered  as being  de minimis  In the 

original  Council  Regulation  (EEC) No 1768/89  for  imports of  video 

tape on  reels originating  In the Republic of Korea.  The  Commission 

sees no reason  to depart  from  this appreciation  In the  present 

proceeding  and  the Council  confirms  this appreciation.  Therefore, 

the adoption of protective measures against  Imports of  video  tape  in 

cassettes manufactured  by  inter-Cassette  (Hong Kong) Ltd. and 

originating  In Hong Kong  Is not  Justified. 

- 5 -

IV - AMENDMENT OF THE REVIEWED  MEASURES 

(9)  Accordingly,  the Commission considers that Regulation  (EEC) No 

1768/89 should be amended and that  Inter-Cassette (Hong Kong) Ltd be 

exempted  from  the definitive ant I-dumping duty  Imposed on VHS video 

tapes  in cassettes originating  in Hong Kong. 

(10) The complainants were  Informed of  the considerations and main  facts 

on  the basis of which  the Council  Intented  to amend Regulation  (EEC) 

No 1768/89 and had no substantial comments  to make. 

(11) Since  this review  Is only  limited to one Hong Kong producer,  It does 

not affect  the date on which  the Council  Regulation  No 1768/89  In 

regard  to Article  15 (1) of Regulation No 2423/88 will  expire. 

HAS ADOPTED THIS REGULATION : 

Article 1 

The following paragraph  is added  to Article  1 (3) of Regulation  (EEC) 

No 1768/89 : 

"The duty specified  In paragraph  2 (b) shall not apply  to models of  video 

tape  In cassettes manufactured  by  inter-Cassette (Hong Kong) Ltd  and 

originating  In Hong Kong  (additional  Taric Code  : 8292). 

- 6 -

Article  2 

This Regulation shall  enter  Into force on  the day  following  Its 

publication  In the Official  Journal  of  the European  Communities. 

This Regulation shall  be binding  in  its entirety  and  directly  applicable 

in all Member  States. 

Done at Brussels, 

For  the  CounclI, 

ISSN 0254-1475 

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