Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 2271/94 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
Date: 1995-04-18
Institutions: European Commission
Subjects: Thailand, bearing, countervailing charge, import tax, re-export, third country

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  18.04.1995 
COM(95) 140 final 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

amending Regulation (EEC) No 2271/94 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 

(presented  by the  Commission) 

EXPLANATORY MEMORANDUM 

(1) 

In September  1994, the Council, by Regulation (EEC) No 2271/94, amended the 
definitive countervailing duty on imports of ball bearings with a greatest external 
diameter not exceeding 30mm, originating in Thailand but exported to the 
Community from  another country, to 5.3%. 

(2)  This duty had been imposed following a review 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 revealed that a duty was necessary 
in order to prevent indirect imports into the Community avoiding the export tax 
levied by the Royal Thai Government on direct imports and to safeguard the 
effectiveness  of the undertaking. 

(3)  The level of the definitive duty is based on the rate of export tax, expressed as a 
percentage of the net, free at the Community frontier, price of the product. The 
amended rate of 5.3% imposed by Regulation (EC) No 2271/94 reflected  a revised 
rate of export tax of 0.72 bant per piece, as determined by Decision 94/639/EC. 

(4) 

In December  1994 the Commission decided to review the above Decision and 
Regulation. In carrying out this review, it has recalculated the amount of subsidy 
granted to the Thai exporters at 0.66 bant 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 amend the definitive countervailing duty rate on indirect imports 
to an amount equivalent to the new rate of export tax (0.66 bant per piece). This 
amounts to 4.8% ad-valorem. 

& 

1-95-166 

COUNCIL REGULATION (EC) No ....../95 

of 

1995 

amending Regulation (EEC) No 2271/94 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 

THE COUNCIL OF THE EUROPEAN UNION 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  3284/94  of  22  December  1994  on 
protection  against  subsidized  imports  from  countries  not  members  of  the  European 
Community1, and in particular Article 13 thereof, 

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

Whereas: 

1 O.J. No L349 31.12.1994, p.22 

A. BACKGROUND 

(1) 

In  September  1994,  following  a  review,  the  Council,  by  Regulation  (EEC) 
2271/942,  amended  the  definitive  countervailing  duty  imposed  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, from 6.7% to 5.3%. 

(2)  The 6.7% countervailing  duty had been  imposed in July  1993 by Regulation  (EC) 
1781/933, following  a review  of Commission  Decision  90/266/EEC4 accepting  an 
undertaking  offered  by  the  Royal  Thai  Government,  in  connection  with  the 
countervailing  duty  proceeding  concerning  imports  of  the  above-mentioned  ball 
bearings. This involved the Royal Thai Government levying an export tax to  offset 
the subsidies granted. No countervailing duty was imposed at the time of adoption 
of  this  Decision.  The  review  investigation  revealed,  however,  that  a  duty  was 
necessary  in  order  to  prevent  indirect  imports  into  the  Community  evading  the 
export tax levied by the Royal Thai Government on direct imports and to  safeguard 
the effectiveness  of the undertaking. 

(3)  The  amended  definitive  duty  rate  of  5.3%  on  indirect  imports,  imposed  by 
Regulation  (EC) No 2271/94, was based  on the revised  rate of export tax  of  0.72 
bant per piece, as determined by Decision 94/639/EC5, following a further  review. 

B. REOPENING OF INVESTIGATION 

(4) 

In December  1994, the Commission  initiated  a review of Decision 94/639/EC and 
of Regulation (EC) No 2271/94, by a notice published in the Official  Journal of the 
European Communities6 

(5)  The purpose of this review was to recalculate the amount of subsidy granted by the 
Royal  Thai  Government,  with  a  view  to  allowing  a  modification  of  the  rate  of 
export tax established by Decision 94/639/EC. Since the rate of countervailing duty 
on  indirect  imports  directly  reflects  the  export  tax  rate,  the  review  also  covers 
Regulation (EC) No 2271/94 imposing the definitive duty. 

2 OJ. No L247 22.9.1994 p. 1 
3 O.J. No L163 6.7.1993 p.l 
4 O.J. No L152  16.6.1990 p.59 
5 O.J. No L247 22.9.94 p.29 
6O.J.NoC348 09.12.94p.5 

© 

(6)  The Commission  officially  advised the Royal Thai Government, the exporters and 
importers  known  to  be  concerned,  as  well  as  the  complainant  in  the  original 
investigation  (Febma)  and  gave  the  parties  directly  concerned  the  opportunity  to 
make  their  views  known  in  writing  and  request  a  hearing.  The  Royal  Thai 
Government,  the  exporters  located  in  Thailand  and  the  Community  producers, 
represented by Febma, made their views known in writing. 

(7)  The Commission  sought and verified  all information  it deemed to be necessary  for 
the purposes of a determination  and carried out an investigation  at the premises of 
the following: 

(a) 

Royal Thai Government: 

Department of Foreign Trade, Bangkok, 
Board of Investment, Bangkok 

(b) 

Thai exporters: 

NMB Thai Ltd, Ayutthaya, Thailand 
Pelmec Thai Ltd, Bang Pa-In, Thailand 
NMB Hi-Tech Ltd, Bang Pa-In, Thailand. 

All these exporting companies are wholly-owned subsidiaries of Minebea Co. Ltd., 
Japan. 

(8)  Upon request, parties were informed of the essential facts and considerations on the 
basis  of  which  it  was  intended  to  recommend  the  amendment  to  the  rate  of 
definitive  countervailing  duty.  They  were  also  granted  a  period  within  which  to 
make representations subsequent to the disclosure. 

The written comments submitted by the parties were, where appropriate, taken into 
consideration. 

C. RECALCULATION OF SUBSIDY AMOUNT 

© 

(9) 

It has been determined that the countervailable subsidies granted to the exporters in 
Thailand  in  the  period  1  October  1993  to  31  March  1994  ("the  investigation 
period")  amount  to  0.66  baht  per  piece.  The  Royal  Thai  Government  has 
accordingly  amended  the export  tax  rate  on  ball  bearings  exported  directly  to  the 
Community  to  0.66  baht  per  piece,  and  has  offered  a  modified  version  of  the 
undertaking  to  this  effect.  This  has  been  accepted  by  Commission  Decision 
95/.../EC7, which also explains in detail the reasoning with regard to the calculation 
of the amount of subsidy. 

D. INJURY AND COMMUNITY INTEREST 

(10)  No new  evidence  was supplied  with  regard  to injury  or  Community  interest.  The 
Council  therefore  maintains  its  conclusions  set  out  in  Regulation  (EC)  2271/94 
concerning these matters. 

E. AMENDMENTS TO DEFINITIVE DUTY 

(11)  In view  of the change in  the export  tax rate  from  0.72  to 0.66 baht per piece, the 
rate  of  definitive  countervailing  duty  on  indirect  imports  should  be  amended 
accordingly to an amount equivalent to the new export tax rate. When expressed as 
a percentage  of the net, free-at-Community-frontier,  price of  the product,  the new 
rate of countervailing duty amounts to 4.8%. 

F. COLLECTION OF ANTI-DUMPING AND COUNTERVAILING DUTIES 

(12)  As  explained  in  recital  (12)  of  Regulation  (EC)  No  2271/94,  the  countervailing 
duty should continue to be collected in addition  to the anti-dumping duty imposed 
by Regulation (EEC) No 2934/908. 

The combined  amount  of  anti-dumping  and countervailing  duty  to be collected  in 
this  case  is,  therefore,  11.5%  (6.7% anti-dumping  duty  plus  4.8%  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 of the product, 

7  See page ... of this Official  Journal 
8OJ.NoL281  12.10.1990 p.l 

HAS ADOPTED THIS REGULATION: 

Article  1 

Article  1 of Regulation (EC) 2271/94 is replaced by the following: 

"Article 1(2) of Regulation (EEC) No 1781/93 shall be replaced by the following: 

"2.  The  countervailing  duty  expressed  as  a  percentage  of  the  net,  free-at-
Community-frontier, price of product, shall be 4.8%". 

Article 2 

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 

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COM(95) 140  final 

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