Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1798/90 in respect of the definitive anti-dumping duty on imports of monosodium glutamate originating in Indonesia, the Republic of Korea, Taiwan and Thailand
Date: 1993-08-06
Institutions: European Commission
Subjects: Far East, South-East Asia, anti-dumping duty, chemical product, import, tariff exemption

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(93) 395 final 

Brussels, 6 August 1993 

Proposal for a 
COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No 1798/90 in respect of the definitive 
anti-dumping duty on imports of monosodium glutamate 
originating in Indonesia, the Republic of Korea, 
Taiwan and Thailand 

(presented by the Commission) 

2  -

Proposal  for a 
COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No  1798/90 in respect of the  definitive 
anti-dumping  duty on imports of monosodium  glutamate 
originating  in Indonesia, the Republic  of Korea, 
Taiwan and Thailand 

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  14 
thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after 
consultation  within  the Advisory  Committee  as provided  for under  the  above 
Regulation, 

Whereas : 

A. 

PREVIOUS  PROCEDURE 

(1)  The  Council,  by  Regulation  (EEC)  No  1798/90(2),  as  amended  by 
Regulation  (EEC)  No  2966/92<3),  imposed  a  definitive  anti-dumping 
duty  on  imports  of  monosodium  glutamate  (hereafter  referred  to  as 
"MSG") falling within CN code ex 2922  42 00 originating  in Indonesia, 
the  Republic  of  Korea,  Taiwan  and  Thailand,  with  the  exception  of 
imports  from  certain  producers  in  these  countries  from  which  the 
Commission  accepted  undertakings  by  Regulation  (EEC)  No  547/90(^) 
and Decision  92/493/EEC<5). 

B. 

REVIEW 

(i) 

General 

(2)  By  a  notice  published  in  the  Official  Journal  of  the  European 
Communities(6),  the  commission,  after  consultation  within  the 
Advisory  Committee  and  in  accordance  with  Article  14  of  Regulation 
(EEC) No  2423/88, initiated  a review  of  the  regulations  and  decision 
which  imposed  the  anti-dumping  measures  currently  in  force  and 
reopened  the  investigation.  The  review was  limited  to  an  examination 
of  changed  circumstances  in  injury,  in  particular  the  fact  that  the 
price  undertakings  accepted  by  the  Commission  have  been  rendered 
insufficient  to  eliminate  the  injury  suffered  by  the  Community 
industry. 

(1)  OJ No L  209, 2.8.1988, p. 1. 
(2)  OJ No L  167, 30.6.1990, p. 1. 
(3)  OJ No L 299, 15.10.1992, p. 1. 
(4)  OJ No L  56, 3.3.1990, p. 23. 
(5)  OJ No L 299, 15.10.1992, p.40. 
(6)  OJ No C 286, 4.11.1992, p. 3. 

_ 3 -

(ii) 

Injury 

(3)  As  far  as  the  dumped  imports  are  concerned,  the  Commission  found 
that,  between  19 89  and  the  first  nine  months  of  1992,  imports  from 
the  countries  concerned  increased  from  3  800 tonnes  to  9 696 tonnes, 
representing  an  increase  in  market  share  from  8.7%  to  26.1%.  The 
prices  of  these  imports  were,  in  US  Dollar  terms,  in  line  with  the 
prices  set  in  the  undertakings  accepted  by  the  Commission  while  in 
ECU terms they were  lower by up to 20% over the period  examined. 

(4)  As  far  as  the  situation  of  the  Community  industry  is  concerned,  the 
volume  of  sales  of  MSG  in  the  Community  by  that  industry  increased 
by  13% between  1989 and the  first nine months of  1992 extrapolated  on 
an  annual  basis,  although  the  market  share  held  by  that  industry 
decreased  by  4.5%  during  the  same period.  The  prices  charged  by  the 
Community  industry  were,  given  the  highly  price  sensitive  nature  of 
MSG,  in  line  with  those  of  the  imports  concerned,  which,  as  stated 
above,  were  somewhat  lower  than  the  prices  set  in  the  undertakings. 
Consequently,  the  Community  industry  was  prevented  from  further 
increasing  its  prices  to  a  level  adequate  to  remove  the  injury 
sustained. 

(5)  The  Commission  also  found  that  while  the  trend  in  costs  and  prices 
had  put  the  Community  industry  back  into  profits  during  the  first 
nine  months  of  1992,  these  profits  were  totally  insufficient  to 
ensure  the  viability  of  the  business.  This  lack  of  adequate  profits 
furthermore  threatens  the  industry's  investment  programme  and  thus 
its competitiveness. 

(6)  The  Commission  concluded,  therefore,  that  material  injury  is  still 
being  suffered  by  the  Community  industry  despite  certain  positive 
effects  of  the  anti-dumping  measures  currently  in  force.  It  was 
found  that  the  remaining  injury  was  caused  by  the  continued  low 
prices  of  the  imports  concerned  in  spite  of  the  measures  in  force, 
and a subsequent  increase  in the volume of these  imports. 

(iii)  Community  interest 

(7)  The  Commission  considered  that,  given  the  small  impact  of  the 
increase  envisaged  in  the  level  of  the  measures  on  the  users  of  MSG 
and  the  requirement  that  the  Community  industry  be  allowed  to make  a 
return  on  the  substantial  investments  recently  made,  it  was  in  the 
interest  of  the  Community  that  the  anti-dumping  measures  remain  in 
force, duly  amended to remove  any remaining material  injury. 

(iv) 

Undertakings 

(8) 

Having  completed  its  investigation,  the  Commission  disclosed  its 
findings  to  the  producers  in  the  exporting  countries  concerned  from 
which  undertakings  had  been  accepted  before  the  initiation  of  the 
review.  New  price  undertakings  were  subsequently  offered  by  these 
producers  with  the  exception  of  one  company  in Thailand  which  ceased 
exporting  to  the  Community  prior  to  1992.  Following  consultations 
within  the Advisory  Committee, one  Member  State  raised  objections  to 
the  acceptance  of  the  new undertakings.  The  Commission,  by  Decision 
93/.../EEC(7),  subsequently  accepted  the new undertakings. 

(7)  OJ No L... 

- 4 -

(v) 

Definitive duties 

(9)  The  Commission  also considered  the  situation  of  those  producers  in 
each of the countries concerned which had not made themselves known 
during the proceeding  and were  subject to a definitive  anti-dumping 
duty. In this respect, recital 32 of Decision 93/.../EEC established 
that,  since the  dumping  situation  had  not been  investigated  in the 
framework of the review, it was considered appropriate that the level 
of  the  definitive  duties  applicable  to  these  producers  remains 
unchanged. 

As to the company in Thailand which ceased exporting to the Community 
before 1992 and which did not offer a new undertaking, recital 33 of 
Decision  93/.../EEC  established  that  no  individual  anti-dumping 
measures  should  be  maintained  for  this  company.  Consequently,  if 
this  company  should,  in  the  future,  resume  exporting  to  the 
Community,  it would  receive  the usual  treatment  given to  any other 
exporter in Thailand which had not offered an undertaking. 

C. 

Amendment of Regulation (EEC) No 1798/90 following the results of the 
review 

(10)  The  Council  considers  it  appropriate  in  view  of  the  foregoing 
findings to amend Regulation  (EEC) No 1798/90 to include within the 
scope  of  the  definitive  anti-dumping  duty  applicable  to  imports of 
MSG originating  in Thailand, future  imports  from that company which 
ceased exporting to the Community before 1992. 

(11)  The Community  industry  concerned was informed  of the main  facts and 
considerations  on  the  basis  of  which  the  Commission  intended  to 
recommend  the  further  amendment  of  Regulation  (EEC) No  1798/90 and 
did not object, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Article  1  of  Regulation  (EEC)  No  1798/90  is  hereby  replaced  by  the 
following: 

"Article 1 

1. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of 
monosodium glutamate falling within CN Code ex 2922 42 00 (Taric Code 
2922 42 00*10)  originating  in  Indonesia,  the  Republic  of  Korea, 
Taiwan and Thailand. 

5 -

2. 

The  amount  of  the  duty  applicable  to  the  net,  free-at-Community-
frontier price, before customs duty, shall be as follows: 

Amount of the duty 

Taric additional code 

Indonesia 
Republic of Korea 
Taiwan 
Thailand 

ECU 0.510 per kg 
ECU 0.189 per kg 
ECU 0.653 per kg 
ECU 0.407 per kg 

8400 
8402 
8404 
8406 

with the exception of imports of the product specified in paragraph 1 
produced by the following companies, which shall be excluded from the 
duties : 

Taric additional Code 

Indonesia 

- PT Sasa 
- PT Indomiwon Citra Inti 
- PT Cheil Samsung Astra 

Republic of Korea 

- Miwon Co Ltd 
- Cheil Foods & Chemicals Inc 

Taiwan 

- Tung Hai Fermentation Industry Corporation 

- ve Wong Corporation 

Thailand 

- Thai Fermentation Industry corporation. 

8401 

8403 

8405 

8407 

3. 

The provisions in force concerning 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 
all Member States. 

Done at Brussels, 

For the Council 

The President 

-  6  -

COM(93) 395 final 

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