Proposal for a COUNCIL REGULATION (EC) imposing a definitive anti-dumping duty on imports of ferro-silicon originating in South Africa and in the People' s Republic of China
Date: 1994-02-03
Institutions: European Commission
Subjects: China, South Africa, anti-dumping duty, anti-dumping legislation, ferro-alloy

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

COM(94)  18 final 
Brussels.  03.02.1994 

Proposal  for  a 
COUNCIL  REGULATION  (EC) 

imposing  a definitive  anti-dumping  duty  on  imports of  ferro-silicon  originating 
in  South  Africa  and  in  the  People's  Republic  of  China 

(presented  by  the  Commission) 

IXPLANATORY  MEMORANDUM 

1 

2. 

3. 

By  Regulation  (EEC)  No  2581/93,  published  in  OJ  No  L  237  of  22  September  1993, 
the  Commission  imposed  a  provisional  anti-dumping  duty  on  imports  of  ferrosilicon 
originating  in  South  Africa  and  the  People's  Republic  of  China. 

The  provisional  anti-dumping  duty  was  extended  for  a maximum  period  of  two  months 
by  Council  Regulation  (EC)  No  3371/93 
In  the  meantime,  the  Commission  has 
completed 

its  investigation  for  the  determination  of  definitive  measures. 

For  the  purpose  of  definitive  findings,  normal  value  and  export  price  were  established 
on  the  same  methods  as  those  used  in  the  provisional  determination  of  dumping.  No 
new  calculation  adjustment  was  submitted  by  the  interested  parties.  The  comparison 
between  normal  value  and  export  prices  to  the  Community  showed  definitive  dumping 
margins  for  the  South  African  and  Chinese  producers  ranging  from  34.7% to  49.7%. 

4. 

As  far  as  injury  is  concerned,  cumulation  of  imports  was  questioned  by  South  African 
producers. 

The  effect  of  the  imports  should  be analysed  cumulatively,  since  the  exports  originating 
in  South  Africa  and  the  People's  Republic  of  China  amounted  to  significant  quantities 
of  the  like  product,  competed  with  the  Community  production  and  with  each  other  and 
since  the  exporter's  market  behaviour  was  similar. 

No  other  facts  relating  to  injury  were  put  forward. 

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

Commission  Regulation  were  submitted. 

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  higher.  No  new  arguments  were  put  forward  to  contradict  this  approach. 

One  South  African  company  proposed  an  undertaking,  which  was  not  accepted  because 
in  previous  cases  undertakings  had  shown  to  be  not  appropriate. 

Accordingly,  the  following  duties  should  be  imposed: 

South  Africa 

Highveld-Rand  Carbide 

People's  Republic  of  China 

47.4% 

34.7% 

49.7%. 

In  the  case  of  South  African  companies  which  failed  to  cooperate,  a  duty  based  on  the 
is  proposed  in  order  to  avoid  a  bonus  for  non-
highest  dumping  margin  found 
cooperation  being  constituted  and  to  prevent  circumvention  of  the  anti-dumping 

Proposal  for  a 
COUNCIL  REGULATION  (EC) 

imposing  a  definitive  anti-dumping  duty  on  imports  of  ferro-silicon  originating 
in  South  Africa  and  in  the  People's  Republic  of  China 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  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 
Community03,  and  in  particular  Article  12  thereof, 

Having  regard  to  the  proposal  presented  by  the  Commission  after  consultation  within  the 
Advisory  Committee, 

Whereas: 

A.  PROVISIONAL  MEASURES 

( 1 )  By  Regulation  (EEC)  No  2581 /93(2), the  Commission  imposed  provisional  anti-dumping 
duties  on  imports  into  the  Community  of  ferro-silicon  originating  in  South  Africa  and 
the People's  Republic of China  and falling  within  CN codes 7202  2 1 1 0,  7202  21  90 and 
ex  7202  29  00. 

By  Regulation  (EC)  No  337l/93(,),  the  Council  extended  the  validity  of  these  duties  for 
a  period  not  exceeding  two  months. 

B. 

SUBSEQUENT  PROCEDURE 

(2)  Following  the  imposition  of  the  provisional  anti-dumping  duty,  one  South  African 
company  requested  and  was  granted  an opportunity  to  be heard  by  the  Commission  and 
made  its  views  known  in  writing. 

(3)  The  Commission  continued  to  seek  and  verify  all  information  it  deemed  necessary  for 
its  definitive 
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 

findings.  The  parties  were 

the  essential 

informed  of 

( i) 

(3) 

OJ  No  L  209,  2.8.1988,  p.  I. 
OJ  No  L  237,  22.9.1993,  p.  2. 
OJ  No  L  303,  10.12  1993, p  I 

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. 

C  DUMPING 

1.  Normal  value 

(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.  No  new 
calculation  adjustment  was presented  by the  interested  parties. 

2. 

Export  prices 

(5)  The  method  used  to  establish  export  prices,  as  set  out  in  recitals  (18)  to  (20)  of 
Regulation  (EEC)  No  2581/93,  is  hereby  confirmed,  as  no  comments  in  this  respect 
were  made by  interested  parties. 

3.  Comparison 

(6)  The findings  and conclusions set out in recital (21 ) of Regulation  (EEC) No 2581/93 are 

hereby  confirmed. 

4.  Dumping  margins 

(7)  The  definitive  examination  of  the facts  showed  the existence  of  dumping  in  respect of 
imports of the product concerned  originating in South  Africa  and the People's Republic 
of  China. 

(8)  The weighted average dumping  margins definitively  established  for  each South  African 
producer  concerned  and  expressed  as  a  percentage  of  the  free-at-Community-frontier 
price of  imports, duty  unpaid,  were  as  follows: 

Highveld  Rand  Carbide 
Samancor 

34.7% 
47.4%. 

(9)  The weighted average dumping margin definitively  established for the People's Republic 
of  China  and  expressed  as  a  percentage  of  the  free-at-Community-frontier  price  of 
imports, duty  unpaid,  was 49.7%. 

D. 

INJURY 

(10)  Two  South  African  producers  questioned  the  Commission's  decision  to  cumulate 
imports from their companies with the other imports from  South Africa  and the People's 
Republic  of  China. 

It  is hereby  confirmed  that  the  effects  of the  imports  should  be analysed  cumulative^, 
since the exports originating in each of these countries amounted to significant  quanta 
'. 
of the like product, since they  competed  with the Community  production  and with each 
other,  and  since the  exporters'  market  behaviour  was  similar. 

(11)  The Commission  concluded  in its provisional  findings,  as set out in recitals (26) to (40) 
of  Regulation  (EEC)  No  2581/93, that  the  Community  industry  had  suffered  material 
injury.  No new  facts  concerning  these findings were  subsequently  put  forward  in  this 
connection. 

This  conclusion  is therefore  confirmed. 

E.  COMMUNITY  INTEREST 

(12)  In the Commission's provisional findings on imports of ferro-silicon  originating in South 
Africa  and  the  People's  Republic  of  China,  as  set  out  in  recitals  (41)  to  (48)  of 
Regulation  (EEC)  No  2581/93,  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. 

(13)  Therefore,  the findings  of Regulation  (EEC)  No 2581/93  in this respect  are  confirmed. 

F.  UNDERTAKINGS 

(14)  One South  African  exporter  proposed  that any  measures  should take the form  of either 
an  undertaking  or  a  minimum  price duty.  The monitoring  of  such  a price  undertaking 
has  been  shown  in  previous  cases  to  be very  complex  and  difficult  for  a product  like 
ferro-silicon  which  is  imported  into  the  Community  in  forms  containing  different 
percentages of silicon  which  should be reflected  in distinct price levels. The  differences 
are,  however,  not  discernible  without  technical  analysis  thus  making  any  such 
undertaking  potentially  ineffective. 

Therefore,  undertakings,  or  indeed  minimum  price  duties  which  give rise to  the  same 
problems, can no longer be considered as an appropriate remedy for a product like ferro-
silicon, as set out in recital  (88) of Council  Regulation  (EC) No 3359/93(4). Furthermore, 
imports  from  other  countries  concerned  by  this  product,  namely  Norway,  Sweden, 
Iceland, Kazakhstan,  Russia,  Ukraine, Brazil, Venezuela  and China, as well as from  the 
other  South  African  producers,  are subject  to  ad  valorem  duties. 

(15)  Given  the  above,  it  is  concluded  that  measures  should  be  imposed  in  the  form  of 

definitive  ad valorem  anti-dumping  duties. 

(4) 

OJ  No  L 302, 9.12.1993, p  I 

G.  DUTY 

(16)  Provisional  measures took the form of anti-dumping duties; these were imposed for both 
South  Africa  and  China  at  the  level  of  the  dumping  margins  found,  since  the  level 
necessary  to  remove  injury  was  higher,  as set  out  in  recital  (50)  of  Regulation  (EEC) 
No 2581/93. 

No  new  arguments  were  put  forward  to  contradict  this  approach.  Therefore,  duties 
should  be  established  at  the  level  of  the  dumping  margins  definitively  determined  in 
recitals  (8) and  (9) of  this  Regulation. 

(17)  In  the  case of  South  African  firms  which  failed  to  cooperate  in  the  investigation,  the 
Commission  considered  in  recital  (52)  of  Regulation  (EEC)  No 2581/93  that  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. In order not to reward non-cooperation, 
it  was  considered  that  the  most  reasonable  facts  were  those  established  during  the 
investigation  and  that  there  was  no  reason  to  believe  that  any  duty  lower  than  that 
corresponding  to  the  highest  margin  of  dumping  found  would  be  appropriate  to  take 
account  of  the  effect  of  dumping  by  non-cooperating  companies  in  South  Africa. 

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

People's  Republic of  China 

49.7% 

South  Africa,  except  Highveld  - Rand  Carbide  47.4% 

Highveld  - Rand  Carbide 

34.7%. 

H.  COLLECTION  OF THE PROVISIONAL DUTIES 

(19)  In  view  of  the  dumping  margins  established,  the  injury  caused  to  the  Community 
industry  and  of  the  latter's  precarious  situation,  it  is  considerered  necessary  that  the 
amounts secured by way of the provisional  anti-dumping duty for all companies and the 
People's Republic  of  China  should  be definitively  collected, 

HAS  ADOPTED  THIS  REGULATION: 

Article 1 

A definitive  anti-dumping duty is hereby imposed on imports of ferro-silicon  containing 
between  20  and  96%  of  silicon  by  weight  falling  within  CN  codes  7202  21  10, 
7202  21  90  and  ex  7202  29 00  (Taric  code  7202  29 00*11)  and  originating  in  South 
Africa  and  in  the  People's  Republic  of  China. 

The  rate  of  duty  applicable  to  the  net  free-at-Community-frontier  price,  not  cleared 
through customs, shall  be as follows: 

49.7% for  ferro-silicon  originating  in the  People's  Republic of China; 

47.4% for  ferro-silicon  originating  in  South  Africa  (additional  Taric  code  8733) 
with the exception of that produced by the company referred to in the third indent, 

34.7% for ferro-silicon originating in South Africa and produced by Rand Carbide, 
Division  of  Highveld  Steel  and Vanadium  Corp. Ltd.,  Witbank  (additional  Taric 
code 8732). 

Article 2 

The  amounts  secured  by  way  of  the  provisional  anti-dumping  duty  pursuant  to  Regulation 
(EEC) No 2581/93  shall  be definitively  collected  in full. 

Article 3 

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 

ISSN 0254-1475 

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