Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of certain electronic weighing scales originating in Singapore and the Republic of Korea
Date: 1993-09-28
Institutions: European Commission
Subjects: Singapore, South Korea, anti-dumping duty, electronic device, import, measuring equipment

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

COM(93) 429  final 

Brussels,  28  September  1993 

Proposal  for a 
COUNCIL REGULATION (EEC) 

imposing a definitive  anti-dumping  duty on imports of 
certain electronic weighing  scales originating 
in Singapore and the Republic of Korea 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1. 

By Regulation (EEC) No  1103/93, published in Official  Journal No L  112 of 6 May 1993, 
the Commission imposed a provisional  anti-dumping duty on imports of certain electronic 
weighing scales originating in Singapore and the Republic of Korea. 

2. 

The provisional anti-dumping duty was extended for a maximum period of two months by 

Council  Regulation (EEC) No  1967/93. 

In the meantime the Commission has completed its investigation  for the determination  of 
definitive measures. 

3. 

For the purpose of definitive  findings, normal  value and export price were established on 
the basis of the same methods as those used in the provisional  determination of dumping, 
after taking into consideration  certain calculation  adjustments submitted  by the parties. 

The  comparison  between  normal  value  and  export  prices  to  the  Community  showed 
definitive dumping margins for the Korean and Singaporean producers ranging from 7.2% 
to  31%. 

4. 

As far as determination and causation of injury is concerned, no new facts concerning these 
findings  were subsequently  put forward in this connection. 

5.  With  respect  to  Community  interest,  no  new  arguments other  from  those  set  out  in the 

Commission Regulation  were put forward. 

6. 

Provisional  measures took  the form  of  anti-dumping duties;  these  were  imposed  for  all 
producers at the level of the dumping margins established since the level to remove injury 
was much higher. No new arguments were put forward to contradict this approach. 

Accordingly, the following  definitive  duties should be imposed: 

Han Instrumentation Technology  Co. Ltd., Seoul 
Cas Corporation, Seoul 
Teraoka Weigh-System PTE Ltd., Singapore 
Descom Scales Manufacturing  Co. Ltd., Seoul 

7.2% 
9.3% 
10.8% 
26.7% 

In the case of  companies which  failed  to cooperate,  a duty  of  31% for  Singapore  and of 
26.7% for Korea is proposed, calculated as set out in the provisional  Regulation, in order 
to avoid a bonus for non-cooperation being constituted and to prevent circumvention of the 
anti-dumping measures. 

Proposal  for a 
COUNCIL REGULATION (EEC) 

imposing a definitive  anti-dumping duty on imports of 
certain electronic weighing scales originating 

in Singapore and the Republic of Korea 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

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

Whereas: 

(I) 

OJNoL209,  2.8.1988,  p. 1 

A. 

PROVISIONAL MEASURES 

(1) 

By Regulation  (EEC)  No  1103/93(2), the Commission  imposed  a provisional  anti-dumping 
duty  on  imports  into  the  Community  of  retail  electronic  weighing  scales  (hereinafter 
referred to as "R.E.W.S.") originating  in Singapore and the Republic of Korea  (hereinafter 
Korea) and falling  within  CN  code  8423  81  50.  The  provisional  anti-dumping  duty  was 
extended  for  a  maximum  period  of  two  months  by  Council  Regulation  (EEC) 
No  1967/93(3). 

B. 

SUBSEQUENT PROCEDURE 

(2) 

(3) 

Following the imposition of the provisional anti-dumping duty, the cooperating Singaporean 
producer  requested  and was granted  an opportunity  to  be heard by  the  Commission  and 
made its views known in writing, as did two of the Korean producers concerned. 

The Commission  continued to  seek  and verify  all  information  it deemed  to be necessary 
for  its  definitive  findings.  The  parties  were  informed  of  the  essential  facts  and 
considerations  on  the  basis  of  which  it  was  intended  to  recommend  the  imposition  of 
definitive anti-dumping duties and the definitive collection of the amounts secured by way 
of  a  provisional  duty.  They  were  also  granted  a  period  within  which  to  make 
representations subsequent to these disclosures. Their representations were considered and, 
where appropriate, the Commission's findings  were modified  to take account of them. 

C 

DUMPING 

1 

Normal yajue 

(4) 

For the purpose of  definitive  findings,  normal  value  was  established  on the basis  of the 
same  methods  as  those  used  in  the  provisional  determination  of  dumping.  Certain 
calculation  adjustments were made on the basis of submissions by the parties. 

(2) 

(3) 

OJNoL  112, 6.5.1993, p. 20. 
OJNoL  179, 22.7.1993, p. 1. 

2. 

Export prices 

(5) 

One Korean  producer  which  sold  to  its parent in  Japan  which  in  turn  sold  to  its related 
company in the Community continued to contest the Commission's position that the export 
price was unreliable and should, therefore, be constructed in accordance with Article 2(8)(b) 
of  Regulation  (EEC)  No  2423/88.  It  argued  that,  in  its  case,  the  price  of  its  related 
company  in the  Community  to unrelated  customers  should be  considered to be the price 
payable  for  the  product  sold  for  export  to  the  Community,  within  the  meaning  of 
Article 2(8Xa)  of  Regulation  (EEC)  No 2423/88,  that  the  related  company  in  the 
Community  did  not  perform  the  functions  of  an  importer  and  that  the  questionnaire 
addressed by the Commission to that company had thus received no reply. 

(6)  However, the Commission came to the conclusion that this price could not be regarded as 
the price mentioned in  Article 2(8Xa) of  Regulation  (EEC)  No  2423/88,  since it became 
clear,  from  the  limited  information  made available  to  the  Commission,  mat the related 
company in the Community  was concerned with sales to unrelated customers by virtue of 
processing  orders,  performing  marketing  functions,  invoicing  these  customers  in  the 
Community  and receiving payment. 

This  related  company  therefore  incurred  costs  normally  borne  by  an  importer.  In these 
circumstances,  the  export  price  was  constructed  on  the  basis  of  the  price  to  the  first 
independent buyer, as provided for in Article 2(8)(b) of Regulation (EEC) No 2423/88. 

Consequently, the price actually paid to the related company in the Community by the first 
independent  customer  was  adjusted  by  the  costs  of  this  related  company,  established 
according  to  Article  7(7)(b)  of  Regulation  (EEC)  No  2423/88,  on  the  basis  of  the 
abovementioned information,  and  a reasonable  profit  of  5% as set out  in  recital  (18) of 
Regulation (EEC) No  1103/93. 

(7) 

The Council confirms the findings  and conclusions of the Commission on export prices as 
set out in recitals (13), (14), (17), (18) and (24) of Regulation (EEC) No  1103/93, on the 
content of which there was made no substantial comment by the three remaining producers. 

3. 

Comparison 

(8)  One exporter  claimed  additional  adjustments on  normal  value  for  warranty  or guarantee 
terms, as well  as adjustments for physical  characteristics  and sales staff  salaries, but was 
not in a position to link the costs directly to the particular sales transactions regarding the 
product under consideration. The claim  was consequently  rejected by the Commission. 

(9) 

For one exporting producer, normal  value was reduced by an allowance corresponding to 
import charges borne on materials physically incorporated in the like product when destined 
for  domestic  consumption  and refunded  when  exported to the Community,  as mis claim 
was substantiated. 

(10)  The  findings  and  conclusions  set  out  in  recitals  (14)  and  (24)  of  Regulation  (EEC) 

No  1103/93  are also  confirmed. 

4- 

Dumping margins 

(11)  The  definitive  examination  of  the  facts  showed  the  existence  of  dumping  in  respect  of 

imports of the product concerned originating  in Korea and Singapore. 

( 12)  The weighted average dumping margin definitively  established for Teraoka Weigh-System 
PTE Ltd., Singapore, and expressed as a percentage of the free-at-Community-frontier value 
of  imports, duty unpaid, is  10.8%. 

(13)  The weighted average dumping margins definitively  established for each Korean producer 
concerned  and  expressed  as  a  percentage  of  the  free-at-Community-frontier  value  of 
imports, duty unpaid, are as follows: 

Cas Corporation 
Han Instrumentation  Technology  Co. Ltd. 
Descom Scales Manufacturing  Co. Ltd. 

9.3% 
7.2% 
26.7% 

(14) 

In  the  case  of  companies  which  failed  to  cooperate  in  the  investigation,  the  Council 
confirms the Commission's position as set out in recitals (16) and (28) of Regulation (EEC) 
No  1103/93. Consequently, the definitive  dumping margin for non-cooperating companies 
should amount to 26.7% for Korea and 31% for Singapore. 

D, 

INJURY 

1. 

Cumulation 

(15)  The effects of Korean and Singaporean imports had to be analysed cumulatively, as set out 

in recital (29) of Regulation (EEC) No 1103/93. 

2. 

Determination of injury 

(16)  Hie Commission concluded in its provisional findings, as set out in recitals (30) to (40) of 
Regulation (EEC) No 1103/93, that the Community industry had suffered  material  injury. 
No new facts concerning these findings were subsequently put forward in this connection. 
This conclusion is confirmed. 

3. 

Causation of injury 

(17)  The  Commission  pointed  out  in  its  preliminary  conclusions  that  the  substantial  injury 
sustained by Community producers had been caused by dumped Korean and Singaporean 
imports (recitals (41) to (52) of Regulation (EEC) No 1103/93). No new arguments were 
put forward  in this connection. 

It is confirmed that the material injury sustained by Community producers has been caused 
by dumped Korean and Singaporean imports. 

E. 

COMMUNITY INTEREST 

(18) 

In the Commission's provisional findings on imports of R.E.W.S. originating in Singapore 
and Korea, as set out in recitals (53) and (54) of Regulation (EEC) No 1103/93, as well as 
in the Council's definitive  findings on imports of R.E.W.S. originating in Japan, as set out 
in  recitals  (94)  to  (98)  of  Council  Regulation  (EEC)  No 993/93(4),  the  interests  of  the 
Community industry, of the consumers and of other industries and activities concerned have 
been considered. No new arguments were put forward  in this connection. 

(19)  Therefore, the findings of Regulation (EEC) No  1103/93 in mis respect are confirmed. 

(4) 

OJNoL  104, 29.4.1993, p. 4. 

F. 

DUTY 

(20)  Provisional  measures took the form  of anti-dumping  duties; these were imposed  for the 
Korean and Singaporean producers at the level of the dumping margins established since 
the level necessary to remove injury  exceeds the dumping margin as set out in recital (55) 
of Regulation (EEC) No  1103/93. No new arguments were put forward to contradict this 
approach. 

Therefore,  duties  should  be  imposed  at  the  level  of  the  dumping  margins  definitively 
determined in recitals (12), (13) and (14) of this Regulation. 

(21)  Accordingly, the following duties should be imposed: 

Han Instrumentation  Technology  Co. Ltd., Seoul 
Cas Corporation, Seoul 
Teraoka Weigh-System PTE Ltd., Singapore 
Descom Scales Manufacturing  Co. Ltd., Seoul 

7.2% 
9.3% 
10.8% 
26.7% 

(22) 

In  the  case  of  firms  which  failed  to  cooperate  in  the  investigation,  the  Commission 
considered  in  recital  (57)  of  Regulation  (EEC)  No 1103/93  mat  the  duty  should  be 
established  on  the  basis  of  the  facts  available  in  accordance  with  Article  7(7)(b)  of 
Regulation (EEC) No 2423/88. It was considered that the most reasonable facts were those 
established during the investigation and that it would constitute a bonus for non-cooperation 
and  could  lead  to  circumvention  of  the  anti-dumping  measures  should  such  firms  be 
attributed a duty lower than the dumping margins established, as set out in recital (28) of 
Regulation  (EEC)  No  1103/93  for  the  cooperating  Korean  companies,  namely  26.7% 
definitively,  and as set out in recital (16) of that Regulation for products originating from 
Singapore 31%. 

G. 

COLLECTION OF PROVISIONAL DUTIES 

(23) 

In view of the nature and the level of the injury  caused to the Community industry by the 
dumped imports and, since the Commission's provisional  findings  are, for  the most part, 
definitively  confirmed,  it is necessary that  amounts secured  by  way of provisional  anti 
dumping duties should be definitively  collected to the extent of the duty rate  definitively 
imposed, 

HAS ADOPTED THIS  REGULATION: 

Article 1 

1. 

2. 

A definitive  anti-dumping duty is hereby imposed on imports of electronic weighing scales 
for  use  in  the  retail 
trade  falling  within  CN  code  8423  81  50  (TARIC  code: 
8423  81 50*10) and originating  in the Republic  of  Korea  and  Singapore. 

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

(a)  Korea 

Products  manufactured  by: 

Han Instrumentation  Technology  Co. Ltd.,  Seoul 

7.2% 

(TARIC  additional  code  8700) 
Cas Corporation,  Seoul 
(TARIC  additional  code 8701) 
All others (TARIC  additional  code  8702) 

(b)  Singapore 

Products manufactured  by: 

Teraoka Weigh  Systems PTE, Ltd 
(TARIC  additional  code  8703) 
All others (TARIC  additional  code 8704) 

9.3% 

26.7% 

10.8% 

31.0% 

3. 

The provisions in force  concerning  customs  duties shall  apply. 

10 

Article 2 

The  amounts  secured  by  way  of  provisional  anti-dumping  duty  under  Regulation  (EEC) 
No 1103/93 shall be definitively  collected at the duty rate definitively  imposed. Amounts secured 
in excess of the definitive  rate of duty shall be released. 

Article 3 

This Regulation  shall  enter into force on the day following  that of its publication  in the  Offical 
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 

11 

r-

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COM(93) 429 final 

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