Proposal for a COUNCIL REGULATION (EC) imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5" microdisks) originating in Malaysia, Mexico and the United States of America, and collecting definitively the provisional duty imposed.
Date: 1996-03-25
Institutions: European Commission
Subjects: Mexico, United States, anti-dumping duty, import, magnetic medium

^^ 

I  COMMISSION Oh  THE EUROPEAN  COMMUNITIES 

* ** 

j 

Brussels, 25.03.1996 
COM(96) 122 UnaJ 

Proposal  l'or a 

COUNCIL  REGULATION  (EC) 

imposing a definitive  anti-dumping duty on imports of certain magnetic disks (3.5" 

microdisks) originating in Malaysia, Mexico and the United States of America, and 
collecting definitively  the provisional duty imposed. 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

1.  The Commission,  by Regulation  (EEC) No 2426/95 of  14 October  19951 imposed  a 
provisional duty on imports of certain magnetic disks (3.5" microdisks) originating in 
the United States, Mexico and Malaysia. 

2.  Following  the  adoption  of  the  provisional  measures,  the  interested  parties,  who  so 
requested,  were  heard  by  the  Commission  and  made  written  submissions.  Upon 
request, parties were informed of the essential facts and considerations on the basis of 
which  it  was  intended  to  recommend  the  imposition  of  definitive  duties  and  the 
definitive  collection of imports secured by way of a provisional duty.  They were also 
granted a period within which to make representations subsequent to the disclosure. 

3.  The oral and written  comments submitted  by the parties were considered  and, where 

appropriate, the Commission's findings were modified to take account of them. 

4.  The facts  as finally  established  confirm  dumping for exporters in Malaysia  and non-
cooperating  exporters  in  the  United  States  and  Mexico  as  well  as  injury  to  the 
Community industry caused thereby, especially demonstrated by price depression and 
resulting lack of  profitability. 

OJNOL249,  17,10.95, P.3 

5.  In these circumstances, the Commission considers that it is in the Community  interest 
to adopt definitive  measures intended to eliminate the injurious  effect  of the dumped 
imports  concerned.  Consequently,  in  accordance  with  Article  9  of  Council 
Regulation  (EEC)  No  3283/942,  the  Commission,  after  consultation  within  the 
Advisory  Committee,  proposes  the  imposition  of  definitive  anti-dumping  duties  on 
imports of certain  magnetic disks  (3.5" microdisks) originating  in the  United States, 
Mexico and Malaysia. 

6.  In view of the dumping margins established, and the seriousness of the injury  caused 
to  the Community  industry,  it  is  also proposed  that  the  amounts  secured  by way of 
provisional anti-dumping duty be definitively  collected to the extent of the amount of 
the duty definitively  imposed. 

OJNOL349, 31.12.1994, P. 1 

Council Regulation (EC) N° 
of 
imposing a definitive  anti-dumping duty on imports of certain magnetic disks (3.5" 

microdisks) originating in Malaysia, Mexico and the United States of America, and 
collecting definitively  the provisional duty imposed. 

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 
Community3,  as  last  amended  by  Regulation  (EC)  No  1251/954,  and  in  particular 
Article 9 thereof, 

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

Whereas, 

3  OJ NO L 349, 31.12.1994, P. 1. 
4  OJ NOL  122,02.06.1995, P. 1. 

(1) 

(2) 

(3) 

A.  Provisional measures 

The Commission, by Regulation(EC) No 2426/955, hereinafter  referred  to as "the 
provisional  duty  Regulation",  imposed  a  provisional  anti-dumping  duty  on 
imports  into  the  Community  of  certain  magnetic  disks  (hereafter  referred  to  as 
3.5"  microdisks)  originating  in  Malaysia,  Mexico  and  the  United  States  of 
America, and falling within CN code ex 8523 20 90. 

B.  Subsequent procedure 

Subsequent  to  the  imposition  of  the  provisional  anti-dumping  duty,  one 
cooperating  Malaysian  producer  and  one company producing  in  both  the United 
States and Mexico, which had explicitly informed  the Commission of its intention 
not to participate in the proceeding, were heard by the Commission. Both parties 
also presented written submissions making known their views on the findings. 

On request, parties were informed  of the essential facts  and considerations on the 
basis of which  it was intended  to recommend  the imposition  of definitive  duties 
and the definitive  collection  of  amounts  secured  by way of the  provisional  duty. 
They were also granted a reasonable period within which to make representations 
subsequent to disclosure. 

(4) 

Because of the volume and the complexity of the data examined, the investigation 
could  not  be  concluded  within  the  time  limit  provided  for  in  Article 6(9)  of 
Regulation (EC) No 3283/94, (hereinafter referred  to as "the basic Regulation"). 

OJ NO L 249, 17.10.1995, P. 3. 

C.  Product under consideration and like product 

(5) 

As  no  further  arguments  have  been  presented  regarding  the  product  under 
consideration and the like product, the findings set out in recitals (8) to (12) of the 
provisional duty Regulation are confirmed. 

D.  Dumping 

(6) 

For the purpose  of the definitive  findings,  dumping  was established  on the basis 
of  the  same  methods  used  in  the  provisional  determination  of  dumping.  The 
dumping margin calculations were only modified to take account of clerical errors 
or  technical  amendments  as  no  new  facts  and  arguments  on  the  methods  were 
presented by the parties. 

(7) 

In  the  light  of  the  foregoing,  the  findings  set  out  in  recitals  (14)  to  (20)  of  the 
provisional duty Regulation, with the appropriate modifications, are confirmed. 

Dumping margins 

(a) Cooperating producers 

(8) 

As far  as the cooperating producers in the United States of America and Mexico 
are concerned,  the findings  in recital  (21) of the provisional  duty  Regulation  are 
confirmed. 

(9) 

On the basis of technical  modifications  made to the calculations  of normal value 
and export price for one cooperating producer in Malaysia, the definitive  dumping 
margins calculated  by the Commission, expressed  as a percentage  of the  free-at-
Community-frontier  price for each of the companies concerned are as follows: 

-  Mega High Tech 
-  Diskcomp 

31.8% 
46.4% 

(b) Non-cooperating producers 

(10) 

In the absence of comment, the findings in recitals (23) and (24) of the provisional 
Regulation are confirmed. 

E.  Community Industry 

(11)  No new arguments were presented with regard to the definition  of the Community 
industry.  The  findings  set  out  in  recitals  (25)  to  (28)  of  the  provisional  duty 
Regulation are, therefore,  confirmed. 

F.  Injury 

1. 

Prices of the dumped imports 

(12)  The  producer  in  the  United  States  and  Mexico  referred  to  at  recital  (2)  above 
objected  to the use of Eurostat data as positive evidence of price undercutting  for 
non-cooperating  companies, on two grounds.  First,  as its distribution  system on 
the  Community  market  is  similar  to  those  American  and  Mexican  producers 
which cooperated, any undercutting on its part would also have been de minimis. 
Secondly,  as  the  CN  code  under  which  Eurostat  data  is  collected  for  3.5" 
microdisks  is  a  "basket"  category  covering  more  than  the  product  concerned, 
judgements on the basis of these figures are likely to be inaccurate. 

These contentions cannot be accepted. 

In the light of this producer's explicit decision not to participate in the proceeding, 
its claim  that  price  undercutting  on  its part  would  also have been  de minimis is 
unsupported  by  any  evidence,  and,  consequently,  amounts  to  no  more  than 
assertion. 

As  to  the  second  objection,  it  is  the  standard  practice  of  the  Community 
institutions to use Eurostat  data as the best positive evidence available of import 
volumes and prices in the absence of more reliable indications from other sources. 
Further, the methodology  employed by the Commission  in this and the two prior 
proceedings  (see  recital  (7)  of  the  provisional  duty  Regulation)  to  address  the 
"basket" nature of the CN code in question has been found  to be reasonable and 
has  not  been  criticised  by  the  parties  involved.  In  any  event,  the  producer 
concerned  has  provided  no  evidence  of  whether,  or  to  what  extent,  Eurostat 
figures may be misleading, as far as the product in question is concerned. 

2. 

Other Injury findings 

(13)  No  new  facts  and  arguments  were  received  in  connection  with  cumulation, 
causality and the other injury  findings.  The findings in recitals (30) to (45) of the 
provisional duty Regulation are therefore  confirmed. 

H.  Community interest 

(14)  No  representations  have  been  received  in  respect  of  the  Community  interest  in 
this proceeding and no comments have been made by any interested parties on the 
provisional findings regarding Community interest. 

The  findings  in  recitals  (46)  to  (50)  of  the  provisional  duty  Regulation  are, 
therefore,  confirmed. 

I.  Duty 

(15)  No comments were received on the methodology  adopted by the Commission  for 
the establishment  of the duty rates to be applied, as set out in recitals (51) to (55) 
of the provisional duty Regulation. 

These  are,  therefore,  confirmed,  and,  as  the  dumping  margins  definitively 
determined exceed the injury  thresholds established for the cooperating producers 
in  Malaysia,  measures  should  be imposed  at the  level  of  these  injury  thresholds. 
As the injury  thresholds established for the cooperating producers  in Mexico and 
the United  States are de minimis, no definitive  anti-dumping measures  should be 
imposed on imports of the like product manufactured  by these producers. 

J.  Collection of the provisional duties 

(16) 

In view of the dumping  margins established, the injury  caused to the Community 
industry,  and  of  the  latter's  precarious  financial  situation,  it  is  considered 
necessary  that  amounts secured by way of  the provisional  anti-dumping  duty  for 
all  companies  should  be  collected  definitively  at  the  duty  rate  definitively 
imposed, 

HAS ADOPTED THIS REGULATION : 

Article 1 

1. 

A definitive  anti-dumping  duty is hereby imposed  on imports  of 3.5" microdisks 
used to record and store encoded digital computer information,  falling  within CN 
code  ex  8523  20  90  (Taric  code  8523  20  90  10), and  originating  in  Malaysia, 
Mexico and the United States of America. 

2. 

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

Country 

Malaysia 
Mexico 
United States 

Rate of duty (%) 
46.4 
44.0 
44.0 

Taric additional code 
8858 
8882 
8857 

with the exception  of imports which are manufactured  and sold for  export to the 
Community by the following companies which shall be subject to the rates of duty 
mentioned below: 

Country and producer 
a) Malaysia 

- Mega High Tech 
- Diskcomp 

Rate of duty (%) 

Taric additional code 

12.8% 
26.4% 

8855 
8856 

10 

3. 

The  duty  shall  not  apply  to  imports  of  the  product  defined  in  paragraph  1 
manufactured  and sold for export to the country by the following companies : 

Country and producer 
b) Mexico 

-Verbatim 
c) United States 

- 3M 
- TDK 
- Verbatim 

Taric additional code 

8854 

8853 
8853 
8853 

4. 

Unless otherwise specified,  the provisions in force concerning customs duty shall 
apply. 

Article 2 

The amounts secured by way of the provisional anti-dumping duty pursuant to Regulation 
(EC) No 2426/95 shall be definitively collected up to the duty rate definitvely  imposed. 

Article 3 

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 

11 

ISSN  0254-1475 

COM(96) 122  final 

DOCUMENTS 

EN 

02  11 

Catalogue number  : CB-CO-96-132-EN-C 

ISBN 92-78-01842-2 

Office  for Official  Publications  of the European Communities 

L-2985  Luxembourg 

42