Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) Nº 3359/93 imposing amended anti-dumping measures on imports of ferro-silicon originating in Russia, Kazakhstan, Ukraine, Iceland, Norway, Sweden, Venezuela and Brazil
Date: 1995-04-05
Institutions: European Commission
Subjects: anti-dumping duty, dumping, ferro-alloy, import, third country

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

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Brussels,  5.04.1995 
COM(95)  128 final 

Proposal  for a 

COUNCIL REGULATION (EC) 
amending  Regulation (EC) N° 3359/93 

imposing amended anti-dumping measures on imports of ferro-silicon 
originating in Russia, Kazakhstan, Ukraine, Iceland, 
Norway, Sweden, Venezuela and Brazil 

(presented by the Commission) 

Explanatory  Memorandum 

1. 

By  Regulation  (EC)  N°  3359/93  published  in  OJ  L  302  of  9.12.1993,  the  Council 

imposed  an  amended  anti-dumping  duty  of  25%  on  imports  of  ferro-silicon 

originating  in  Brazil, with  the  exception  of  imports  from  five  exporters  specifically 

mentioned which were subject to a lesser rate of duty. 

2. 

In that  Regulation, the  Council  noted  that  the  Commission  would  be  prepared,  as 

always, to carry out a review in the  case  of  those  companies which  did  not  export 

during the investigation period, are not related to companies which did export during 

that  period  and  which  now  intend  to  commence  exporting  to  the  Community  (so-

called newcomers). 

3. 

In  March  1994,  the  Commission  received  an  application  for  review  of  these 

measures from a Brazilian company,  Libra  Ligas do  Brazil, which claimed to  satisfy 

these criteria. 

4. 

In June  1994, the Commission initiated, according to Article  14 of Regulation (EEC) 

N° 2423/88, a  partial  review  of  Council  Regulation  (EC)  N° 3359/93  (OJ  C  165  of 

17.6.1994). 

5. 

Subsequently, another Brazilian company, Nova Era Silicon S.A., claimed also to be 

a newcomer and requested to be, and was, included in the review investigation. 

6. 

The investigation into dumping covered the period 1 July 1993 - 30 June 1994. 

7. 

Since for  both companies  sales  on the  domestic  market did  not  permit  recovery  of 

all costs, normal values were constructed. 

8. 

Neither  company  had  made  export  sales  to  the  EC.  Therefore,  dumping  margins-

could  not  be  established.  However,  an  export  price  level  could  be  established  on 

the basis of each company's normal value at which dumping would not occur. 

9. 

Therefore, the Commission  proposes  to  impose a minimum price (variable)  duty for 

each company based on its normal value. 

10. 

Regulation (EC) N° 3359/93 should be amended accordingly. 

Proposal for a 

Council Regulation (EC) N° 
of 
amending Regulation (EC) N° 3359/93 

imposing amended anti-dumping measures on imports of ferro-silicon 
originating in Russia, Kazakhstan, Ukraine, Iceland, 
Norway, Sweden, Venezuela and Brazil 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard to  Council  Regulation  (EEC)  N° 2423/88  of  11 July  1988  on  protection 
against  dumped  or  subsidised  imports  from  countries  not  members  of  the  European 
Economic Community l, as last amended by Regulation (EC) N° 522/942, and in particular 
Article 14 thereof, 

Having regard to the proposal submitted by the Commission after consultations within the 
Advisory Committee, 

Whereas: 

1 OJ N°L 209, 2.8.1988, p. 1. 

2 OJ N° L 66, 10.3.1994, p. 10. 

A.  PREVIOUS PROCEDURE 

(1)  By Regulation (EC) N° 3359/93 3, the Council imposed an anti-dumping duty of 25% 

on  imports  of  ferro-silicon  falling  within  CN  codes  7202 21 10,  7202 21 90  and  ex 

7202 29 00  originating  in  Brazil,  with  the  exception  of  imports  from  five  exporters 

specifically mentioned which were subject to a lesser rate of duty. 

(2) 

In  that  Regulation,  the  Council  noted  that  the  Commission  would  be  prepared,  as 

always, to  carry  out  a  review  in the  case  of  those  companies  which  did  not  export 

during the investigation  period, are  not related to companies which did export  during 

that  period  and  which  now  intend  to  commence  exporting  to  the  Community  (so-

called newcomers). 

B.  REVIEW REQUEST 

(3)  The  Commission  received  an  application  for  a  review  of  the  measures  currently  in 

force  from  a  Brazilian  company,  Libra  Ligas  do  Brazil  claiming  that  it  satisfied  the 

criteria mentioned under recital 2. 

(4)  This  company  provided,  on  request,  evidence  of  the  facts  alleged  which  was 

considered  sufficient  to justify  the  initiation of  a review  in accordance  with Articles  7 

and 14 of Regulation (EEC) N° 2423/88 (hereinafter the basic Regulation). 

By a notice published on  17 June,  1994 4, the Commission, after  consultation  within 

the Advisory Committee, initiated a review of  Regulation (EC) N° 3359/93 with regard 

to the company concerned and commenced its investigation. 

3 OJN° L 302,9.12.1993, p. 1. 
4 0J  N° C 165,17.6.1994, p. 13. 

(5)  Subsequently,  another  Brazilian company,  named  Nova  Era Silicon S.A.,  made  itself 

known to the Commission and requested to be included in the investigation according 

to the provisions of the above mentioned notice of initiation. Since this company  was 

able  to  submit  evidence  that  it  had  not  exported  the  products  concerned  to  the 

Community during the period of investigation but that it had the firm intention of doing 

so and was not related to or associated with any of the companies subject to the anti 

dumping duty, the Commission decided to include it in the investigation. 

(6)  The product under investigation is the same as the one concerned in Regulation (EC) 

N° 3359/93. 

(7)  The investigation period set was 1 July 1993 to 30 June 1994. 

C.  RESULTS OF THE INVESTIGATION 

1. 

Newcomer qualification 

(8)  The investigation  confirmed that the two  companies,  Libra  Ligas  do  Brazil and  Nova 

Era Silicon S.A.,  had never exported ferro-silicon to the Community. The Commission 

was  satisfied  that these  companies  intended  to  do  so  in the  immediate  future,  as  it 

was shown that potential customers had been contacted. 

In  addition,  it  was  found  that  these  two  companies  had  no  link,  either  direct  or 

indirect, with the exporters  involved in the previous  procedure and for which  dumping 

was found. 

Accordingly,  it is confirmed that the two  companies  concerned  should  be considered 

as  "newcomers"  and  that  a  partial  review  of  Regulation  (EC)  N° 3359/93  was 

warranted in so far as these two companies are concerned. 

2. 

Dumping 

(9)  Since the companies  involved  did not  sell  any  ferro-silicon  on the  domestic  market 

during the investigation period at prices which permitted recovery of all costs, normal 

value was determined for each company on the basis of the constructed value of the 

product concerned in accordance with  Article 2 (3) (b)  of  the basic Regulation. This 

constructed value was computed on the basis of all costs, both fixed and variable, in 

the country of origin, of raw materials and manufacture, plus a reasonable amount for 

selling, administrative, other general expenses and reasonable profit. Selling, general 

and administrative expenses were calculated  by reference to the expenses incurred 

for the sales of ferrosilicon on the Brazilian domestic market.  An average profit of 6% 

on  the  costs  of  production,  necessary  for  long-term  investment,  was  found 

reasonable to be applied  . This rate was also used in the previous investigation with 

regard to the  other  Brazilian  producers  and  can  still be  regarded  as  the  profit that 

Brazilian companies can normally achieve on their domestic market. 

(10)  Since, it was established that the two companies concerned had not exported ferro-

silicon  to  the  Community  during  the  investigation  period,  it  was  not  possible  to 

determine whether dumping existed in the absence of an export price. 

(11)  However, the normal value established for each company gives decisive guidance on 

the export price level required in order to avoid dumping in the future. 

D.  AMENDMENT OF THE REVIEWED  MEASURES 

(12)  As  the  level of  injury  caused  to the  Community  industry  is  higher than  the  dumping 

margin, the measures should be based on the dumping margin. 

(13)  Under  these  circumstances,  the  appropriate  measure  for  the  two  companies 

concerned should take the form of a variable duty equal to the difference between the 

export  price  of  a  tonne  of  ferro-silicon  net,  free  at  Community  frontier,  not  cleared 

through customs and a minimum price CI F Community frontier, where the export price 

is  lower than this  minimum  price.  This  minimum  price  should  be established  on  the 

basis of the normal value to which  is added charges for inland freight, ocean freight, 

insurance and commission. 

(14)  Libra Ligas do Brazil and  Nova  Era Silicon S.A.  were  informed of the essential facts 

and considerations on the basis of which  it was  intended to  propose the  amendment 

of  Regulation  (EC)  N°  3359/93  and  were  given  an  opportunity  to  comment.  The 

Commission  also  officially  advised  the  complainants  mentioned 

in  the 

initial 

investigation. 

The  Brazilian  producers  made  their  views  known  in  writing  which  were  taken  into 

consideration where deemed appropriate. 

(15)  Accordingly,  Regulation  (EC)  N°  3359/93  should  be  amended  to  allow  for  the 

imposition  of  a  company-specific  anti-dumping  duty  on  imports  of  ferrosilicon 

manufactured  by  Libra  Ligas  do  Brazil  and  Nova  Era  Silicon  S.A.  replacing  the 

general anti-dumping duty of 25%. 

The  duty  should  be  equal  to  the  difference  between  ECU  849  per  tonne  for  Libra 

Ligas  do  Brazil  and  ECU  885  for  Nova  Era  Silicon  S.A.  and  the  net,  free  at 

Community frontier price, before duty, where the latter is lower. 

(16)  Since this review is limited to including within the scope of the measures two Brazilian 

producers  which  have  not  previously  exported  to  the  Community,  the  measures 

contained in the aforementioned Regulation (EC) N° 3359/93 are not being amended 

or  confirmed  within  the  meaning  of  Article  15  (1)  of  the  basic  Regulation  and 

consequently  the  date  on which  they  are  due  to  expire  pursuant  to  this  provision 

should remain unchanged. 

HAS ADOPTED THIS REGULATION 

Article 1 

The following subparagraph is hereby added to Article )  (2) of Regulation (EC) N° 3359/93, 

following the end of the indent concerning ferro-silicon originating in Brazil: 

for  ferrosilicon  produced  by  Libra  Ligas  do  Brazil  and  Nova  Era  Silicon  S.A.,  the 

amount of the duty shall be the difference between the net free-at-Community-frontier 

price, not cleared through customers, where lower and: 

ECU 849 per ton for Libra Ligas do Brazil  (additional taric code 8827) 

ECU 885 per ton for Nova Era Silicon S.A. (additional taric code 8828)" 

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 

ISSN (054-1475 

C0M(95)  128 final 

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