Proposal for a COUNCIL REGULATION (EC) EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTIDUMPING DUTIES IMPOSED ON IMPORTS OF CERTAIN TYPES OF ELECTRONIC MICROCIRCUITS KNOWNS AS DRAMS (DYNAMIC RANDOM ACCESS MEMORIES) ORIGINATING IN JAPAN AND IN THE REPUBLIC OF KOREA
Date: 1996-02-15
Institutions: European Commission
Subjects: Japan, South Korea, anti-dumping duty, information technology industry, microelectronics

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  15.02.1996 
COM(96) 52  final 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

EXTENDING  THE SUSPENSION  OF THE DEFINITIVE  ANTI 

DUMPING  DUTIES IMPOSED ON IMPORTS  OF CERTAIN  TYPES 

OF ELECTRONIC  MICROCIRCUITS  KNOWN  AS  DRAMS 

(dynamic  random  access  memories) 

ORIGINATING  IN JAPAN AND IN THE REPUBLIC  OF  KOREA 

(presented  by  the  Commission) 

WPIS 

I'-W 

Explanatory  Memorandum 

(1)  The  Commission,  by  Decision  (95/197/EC)  of  8  June  19950),  suspended  the 

definitive  anti-dumping  duties  imposed  on  DRAMs  originating  in  Japan  and 

the Republic  of Korea  for a period of nine months, i.e. until  9 March  1996.  This 

decision  was adopted  on the grounds that the market  situation  for  the product  in 

question  had  temporarily  changed  to  the  extent  that  injurious  dumping  no 

longer prevailed  and that, therefore,  the measures could  be  suspended. 

(2)  The  Commission  has examined  the data available  concerning  the conditions  on 

the  Community  market  and  found  that,  towards  the  end  of  the  initial  period  of 

suspension  of the measures, the DRAM  market  in the  Community  is still  stable 

with  demand  outstripping  supply.  Sales  prices  are  high  and  the  financial 

performance  of  the  Community  industry  is  still  favourable.  Market  forecasts 

indicate  that  such  market  situation  would  be  further  sustained  at  least  for  1996 

and the  first part of  1997. 

It  appears  reasonable,  therefore,  to  assume  that  injurious  dumping  on  the 

Community  market  would not recur if the suspension  of the measures  would  be 

extended  for a period  of one year, i. e. until  March  1997. 

(3)  The  Commission  has  informed  the  complainant  of  its  intention  to  propose  to 

the  Council  the  extension  of  the  suspension  the  above  anti-dumping  measures 

and  has  provided  it  with  an  opportunity  to  comment.  The  complainant  has 

raised no objections  with regard to such proposal. 

(')  OJN°L  126,9.6.1995, p.58 

(4)  The  attached  draft  Council  Regulation  contains  more  detailed  information 
showing  that  the  requirements  contained  in  Article  14  (4)  of  Council 
Regulation  (EC) No 3283/94 for the extension of the suspension  of these anti 
dumping duties are met. 

(5)  Therefore, it is proposed that the Council decides to extend, for a period of one 

year, the suspension of the anti-dumping duties imposed on imports of 
DRAMs originating in Japan and Korea. 

COUNCIL REGULATION (EC) No .... /96 

of 

/1996 

EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTI 
DUMPING DUTIES IMPOSED ON IMPORTS OF CERTAIN TYPES 
OF ELECTRONIC MICROCIRCUITS KNOWN AS DRAMS 

(dynamic random access memories) 
ORIGINATING  IN JAPAN AND IN THE REPUBLIC OF KOREA 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard  to Council Regulation  (EC) No. 3283/94 of 22 December  1994 
on  protection  against  dumped  imports  from  countries  not  members  of  the 
European  Community*'>,  as  last  amended  by  Council  Regulation  of  (EC) 
No. 1251/95(2),  and in particular Article  14 (4) thereof, 

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

Whereas: 

(')  OJ N_L  349, 31.12.94, p. 1 
W  OJN°L  122,2.6.95, p. 1 

V 

(1)  The  Council,  by  Regulation  (EEC)  2112/90(3),  imposed  a  definitive  anti 
dumping  duty  on  imports  into  the  Community  of  certain  types  of  electronic 

microcircuits 

known 

as  DRAMs 

(dynamic  random  access  memories) 

originating  in Japan, and  falling  under 

— 

CN  codes  8542  1112,  8542  1114,  8542  1116,  8542  1118  for 

finished 

DRAMs 

— 

ex  8542  11 01 for  DRAM wafers, ex 8542  11 05 for  DRAM-dice  or -chips and 

— 

ex 8473 30  10 or ex 8548 00 00 for  DRAM  modules. 

(2)  By  Regulation  (EEC)  No  611/93(4),  the  Council  imposed  a  definitive  anti 
dumping  duty  on  imports  into the Community  of the  same products  originating 

in the Republic  of  Korea. 

(3)  The  Commission,  by  Decision  (95/197/EC)  of  8  June  1995<5>, suspended  the 
definitive  anti-dumping  duties  imposed  on  DRAMs  originating  in  Japan  and 

the  Republic  of  Korea  for  a  period  of  nine  months  on  the  grounds  that  the 

market  situation  for  the  product  in  question  had  temporarily  changed  to  the 

extent  that  injurious  dumping  no  longer  prevailed  and  that,  therefore,  the 

measures could  be suspended  for  this  period. 

<3)  OJ N°L  193, 25.7.90, p. 1, as last amended by Regulation (EEC) No 2967/92. Oj L 299 of  15.10.92, p.4 
(4)  OJN°L66,  18.3.93, p. I 
(5> 

OJN°L  126,9.6.1995, p.58 

(4)  On  15  July  1995  the  Commission  initiated  a  review*6*  of  the  anti-dumping 
measures  concerning  DRAMs  originating  in  Japan  and  the  Republic  of  Korea, 

pursuant  to  Article  11  (3)  and  (7)  of  Regulation  (EC)  3283/94,  in  order  to 

investigate  the  need  for  the  continued  imposition  of  the  measures.  This  review 

is at present  pending. 

(5)  Based  on  the  information  available  on  the  market  situation,  in  particular  the 

sales  reports  of  the  exporters  concerned,  the  Commission  has  examined 

whether  the  conditions  for  extending  the  suspension  of the  anti-dumping  duties 

are  met.  In  particular,  the  statistical  information  available  and  the  sales  data 

which  the  Commission  has  obtained  from  the  Community  producers  and  all 

known  Japanese  and  Korean  exporters,  shows  that,  as  the  end  of  the  initial 

period  of  suspension  of  the  measures  approaches,  the  DRAM  market  in  the 

Community  is  still  stable,  with  demand  outstripping  supply.  Sales  prices  are 

high  and 

the  financial  performance  of  the  Community 

industry 

is  still 

favourable.  It  was  found  that,  in  general,  the  market  conditions  described  in 

recital  (3)  of  Commission  Decision  (95/197/EC)  have  prevailed.  Market 

forecasts  indicate that  such a market  situation  will  be sustained  at least for  1996 

and the first  part of  1997. 

(6>  OJN_C  181, 15.7.95, p. 13 

(6)  However,  it is also considered  that,  in view  of the  cyclical  nature  of the  DRAM 

market  in  the  past,  the  current  market  situation  might  be  followed  by  a  market 

down-turn.  This  could  result  in  a  recurrence  of  injurious  dumping  and  would 

again  necessitate  the  application  of  anti-dumping  measures.  This  consideration 

appears  to  be  supported  by  the  fact  that  significant  additional  production 

capacities  have  recently  been  established  worldwide  and  in  particular  in  Japan 

and  the  Republic  of  Korea,  and  that,  in  addition,  further  capacities  will  be 

established  in  the  near  future.  It  is  reasonable  to  assume  that  this  increase  in 

worldwide  production  capacity  might  aggravate  a possible  future  market  down 

turn. 

(7) 

In  the  light  of  the  foregoing,  it  is  considered  appropriate  to  extend 

the 

suspension  of  the  measures  in  question  beyond  the  initial  period  of  nine 

months,  by  a  further  period  of  one  year,  and  it  is  considered  unlikely  that 

injurious  dumping  of  DRAMs  would  recur  on  the  Community  market  as  a 

result  of such  extension. 

(8)  Therefore,  in accordance  with the provisions  of Article  14 (4) of the  Regulation 

(EC)  3283/94  the  Commission  informed  the  complainant  of  its  intention  to 

propose  to  the  Council  to  extend  the  suspension  of  the  above  anti-dumping 

duties  for  a  period  of  one  year  and  has  provided  it  with  an  opportunity  to 

comment.  The complainant  raised  no objections  in this  regard. 

T 

(9) 

In conclusion,  it is considered  that  the requirements  to extend  the  suspension  of 

the duties concerned,  pursuant  to Article  14 (4) of Regulation  (EC) N°  3283/94, 

are  met  and  that  the  suspension  should  therefore  be  extended  for  a  period  of 

one  year. 

(10)  The  Commission  will  continue  to  monitor  closely  the  development  of  the 

DRAM-market  and  the  behaviour  of  individual  market  participants,  as  it  has 

done  so  during  the  initial  period  of  suspension.  Should  a  situation  arise  in 

which  injury  to  the  Community  industry  would  recur,  the  Commission  will 

propose that the Council  reinstate the above  anti-dumping  duties without  delay. 

(11)  To  this  end,  the  obligation  to submit  reports  on  sales  and  prices  pursuant  to  the 

undertakings  will  continue  in  order  to  enable 

the  Commission  to  monitor  the 

DRAM  market.  However,  as  previously  stated,  during  the  period  of  the 

extended  suspension  of the  anti-dumping  duties,  the  obligation  to adhere  to  the 

minimum  price  provisions  of  these  undertakings  will  be  waived.  The  quarterly 

calculation  and  communication  of  such  prices  to  these  companies  by  the 

Commission  will therefore  be discontinued  during this  period. 

(12)  The  Advisory  Committee  was consulted  on  the  suspension  of the  anti-dumping 

measures  and  raised  no  objections. 

€> 

HAS ADOPTED THIS REGULATION: 

Sole Article 

of 

types 

The  suspension  of  the  definitive  anti-dumping  duties  imposed  on  imports  of 
certain 
as  DRAMs 
(dynamic random access  memories)  originating  in  Japan  and  the  Republic  of 
Korea  by  Council  Regulations  (EEC)  2112/90  and 
(EEC)  No  611/93 
respectively is hereby extended for a period of one year. 

electronic  microcircuits 

known 

This Regulation shall enter into force on the day following  its publication in the 
Official Journal of the European Communities. 

Done at Brussels, 

9 

ISSN 0254-1475 

COM(96) 52 final 

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