Proposal for a COUNCIL REGULATION (EEC) imposing a definitive countervailling duty on imports of ball bearings with a greatest external diameter not exceeding 30 mm, originating in Thailand but exported to the Community from another country, and definitively collecting the provisional duty
Date: 1993-06-07
Institutions: European Commission
Subjects: Thailand, bearing, countervailing charge, import tax, re-export, third country

COMMISSION  OF  THE  EUROPEAN  CCfttolUNITIES 

C0M(93>264  final 

Brussels. 7 June 1093 

Proposal  for a 

milNICIL REGULATION (EEC) 

inposing  a  definitive  countervailing  duty  on  reporta  of  ball  bearings 

with  a  greatest  external  diameter  not exceeding  30 si,  originating  in 

Thailand  but  exported  to  the  Coesunity  from  another  country,  and 

definitively collecting the provisional duty 

(presented by the Commission) 

I  — 

EXPLANATORY  MEMORANDUM 

(1) 

In  March  1993,  the  Commission,  by  Regulation  (EEC) '-No  527/93, 

imposed  a provisional  duty  of  13.4% on  imports  of  ball  bearings 

with  a  greatest  external  diameter  not  exceeding  30  mm, 

originating  in  Thailand  but  exported  to  the  Community  from 

another third country. 

(2) 

This  duty  was  imposed  following  a  review  commenced  in  July  1992 

of  commission  Decision  90/266/EEC  accepting  an  export  tax 

undertaking  offered  by  the  Royal  Thai  Government,  in  connection 

with the anti-subsidy  proceeding  concerning  imports  of the above-

mentioned  ball bearings. This  review  has revealed  that  a duty  is 

necessary  in  order  to  prevent  indirect  imports  avoiding  the 

export  tax  levied  by  the  Royal  Thai  Government  and  to  safeguard 

the effectiveness of the  undertaking. 

(3) 

The  provisional  duty  of  13.4% was  based  on  the  original  rate  of 

export  tax  of  1.76  baht  per  piece,  as  determined  in  Decision 

90/266/EEC, expressed  c.i.f. at the Community  frontier. 

(4) 

The  Commission  has,  when  reviewing  this  Decision,  now 

recalculated  the  amount  of  subsidy  granted  to  the  exporters  and 

has  concluded  that  the  subsidy  now  amounts  to  0.91  baht  per 

piece.  The  Royal  Thai  Government  has  accordingly  modified  the 

rate  of the export  tax on ball  bearings  exported  directly  to the 

Community. 

(5) 

It  is  proposed  to  impose  a  definitive  countervailing  duty  on 

indirect  imports  in order to preserve  the effectiveness of the 

undertaking  and  to  prevent  such  imports  causing  injury  to the 

Community  industry.  This  duty  should  be  equivalent  to  the  new 

rate  of  export  tax  (0.91 baht per  piece),  and  this  amounts to 

6.7% ad-valorem. 

(6) 

The provisional countervailing duty should be collected up to the 

amount  of  the  definitive  countervailing  duty.  The  definitive 

countervailing duty should be collected in addition to the anti 

dumping duty  imposed by Regulation  2934/90, which  is unaffected 

by the present measure. 

~ < f-

COUNCIL REGULATION  (EEC) NO, 

OF. 

imposing  a  definitive  countervailing  duty  on  imports  of  ball  bearings 

with  a  greatest  external diameter  not  exceeding  30 mm,  originating  in 

Thailand  but  exported  to  the  community  from  another  country,  and 

definitively collecting the provisional duty 

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 (*•), and in particular Article 

12 thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after 

consultation  within  the  Advisory  committee  as  provided  for  under  the 

abovementioned Regulation, 

Whereas : 

(1) O.J. L209, 2.8.1988, p. 1 

—  *5 — 

A. PROVISIONAL  MEASURES 

(1) 

In March  1993, the Commission,  by Regulation  (EEC) No  527/93(2), 

imposed  a provisional  countervailing  duty  of  13.4% on  imports  of 

ball bearings with  a greatest  external diameter  not  exceeding  30 

mm,  originating  in  Thailand  but  exported  to  the  Community  from 

another third country. 

(2) 

This  duty  was  imposed  following  a  review  commenced  in 

July  1992(3)  of  Commission  Decision  90/266/EEC(4)  accepting  an 

undertaking  offered  by  the  Royal  Thai  Government,  in  connection 

with  the  countervailing  duty  proceeding  concerning  imports  of 

the  above-mentioned  ball  bearings.  No  countervailing  duty  was 

imposed  at  the  time  of  adoption  of  this  Decision.  The  review 

investigation  has  revealed  that  a duty  is  necessary  in  order  to 

prevent  indirect  imports  avoiding  the  export  tax  levied  by  the 

Royal  Thai  Government  and  to  safeguard  the  effectiveness  of  the 

undertaking. 

B.  SUBSEQUENT  PROCEDURE 

(3) 

Following  the  imposition  of  the  provisional  countervailing  duty, 

the  interested  parties  who  so  requested  were  granted  an 

opportunity  to  be  heard  by  the  Commission  and  to  make  known 

their views on the findings. 

(4) 

Upon  request,  parties  were  informed  of  the  essential  facts  and 

considerations  on  the  basis  of  which  it  was  intended  to 

recommend  the  imposition  of  a definitive  duty  and  the  definitive 

collection  of  amounts  secured  by  way  of  the  provisional  duty. 

They  were  also  granted  a  period  within  which  to  make 

representations  subsequent  to the disclosure. 

(2) O.J. L 56,  9.3.1993,  p. 24 
(3) OJ L182, 18.7.1992, p. 6 
(4) OJ L152, 16.6.1990, p. 59 

- ^ ~-

The oral and written comments  submitted by the parties were taken  into 

consideration. 

B. RECALCULATION  OF SUBSIDY  AMOUNT 

(5) 

The  provisional  duty  of  13.4% was  based  on  the  original  rate  of 

export  tax  of  1.76  baht  per  piece,  expressed  c.i.f.  at  the 

Community  frontier as determined  in Decision  90/266/EEC. 

(6) 

The  Commission  has,  when  reviewing  this  Decision,  now 

recalculated  the  amount  of  subsidy  granted  to  the  exporters  in 

Thailand  during  the year  immediately  prior  to the opening  of the 

review.  It  has  concluded  that  the  subsidy  now  amounts  to  0.91 

baht  per  piece.  The  Royal  Thai  Government  has  accordingly 

modified  the  rate  of  the  export  tax  on  ball  bearings  exported 

directly  to the Community. 

D.  INJURY AND COMMUNITY  INTEREST 

(7) 

No  evidence  was  supplied  with  regard  to  injury  or  Community 

interest.  The  Council  therefore  confirms  the  conclusions  of  the 

Commission  in Decision  90/266/EEC concerning  these matters. 

-ï-

E.  DEFINITIVE DUTY 

(8) 

The  Commission  concludes  that  it  is  necessary  to  impose  a 

countervailing  duty  on  indirect  imports  in order  to preserve  the 

effectiveness  of  the  undertaking  and  to  prevent  such  imports 

causing  injury  to  the  community  industry  (as  established  in 

Decision  90/266/EEC).  The  council  confirms  this  conclusion.  In 

order  to  take  account  of  future  price  changes  due  to  exchange 

rate  fluctuations,  it  is  appropriate  to  express  the  duty  on  an 

ad-valorem basis. The duty so calculated  amounts to  6.7%. 

F. COLLECTION  OF PROVISIONAL  DUTIES 

(9) 

In  view  of  the  fact  that  indirect  exports  are  subsidised  and 

contribute  to the  injury  suffered  by  the  Community  industry,  the 

Council  considers  it  necessary  that  the  amounts  collected  by way 

of  provisional  duty  should  be  definitively  collected  up  to  the 

amount of the duty definitively  imposed. 

G. COLLECTION  OF ANTI-DUMPING  AND COUNTERVAILING  DUTIES 

(10) 

Council  Regulation  (EEC)  No  2934/90(5)  imposed  an  anti-dumping 

duty of 6.7% on imports  of ball bearings with  a greatest  external 

diameter  not  exceeding  30  mm  originating  in  Thailand.  The 

collection  of  this  anti-dumping  duty  on  all  imports  of  Thai 

origin remains unaffected  by the present  Regulation. 

(5) O.J. L281, 12.10.1990, p.l. 

As  explained  in  Commission  Regulation  (EEC)  No  1631/90<6) 

(Recitals 47-53) confirmed by Council Regulation  (EEC) No 2934/90 

(Recitals  19-20),  the  imposition  of  both  anti-dumping  and 

countervailing duties is possible in this case. 

Therefore the countervailing duty should be collected in addition 

to the anti-dumping duty. The combined amount of anti-dumping and 

countervailing duty to be collected  in this case is, therefore, 

13.4%  (6.7% anti-dumping duty plus 6.7% countervailing duty). 

The  basis  for  calculating  the  amount  of  both  anti-dumping  and 

countervailing  duty  should  be  the  same  net,  free  at  Community 

frontier price. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. A definitive countervailing duty is hereby imposed on imports of ball 

bearings  with  a  greatest  external  diameter  not  exceeding  30  mm, 

falling within CN code 8482 10 10, which originate in Thailand but are 

exported to the community from another country. 

(Originating in Thailand and exported from another country : 

Taric additional code 8723; 

Originating in Thailand and exported from Thailand : 

Taric additional code 8724.) 

(6) O.J. L152, 16.6.1990, p. 24. 

- ^-

2. The  countervailing  duty  expressed  as a percentage  of the  net,  free at 

Community  frontier price of the product,  shall be  6.7%. 

3. The provisions  in force concerning customs duties  shall apply. 

Article 2 

The  amounts  collected  or  secured  by  way  of  provisional  countervailing 

duty  pursuant  to  Regulation  (EEC)  No  527/93  shall  be  collected  at  the 

rate  of duty  definitively  imposed.  Secured  amounts  which  are  not  covered 

by the rate of duty definitively  imposed  shall be  released. 

Article 3 

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 council 

ISSN 0254-1475 

COM(93) 264 final 

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