Proposal for a COUNCIL REGULATION (EC) extending the suspension of the definitive anti-dumping duty imposed on imports of certain types of electronic micorcircuits known as EPROMS (erasable programmable read only memories) originating in Japan
Date: 1996-03-26
Institutions: European Commission
Subjects: Japan, anti-dumping duty, import, microelectronics

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

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Brussels,  26.03.1996 
COM(96)  125  final 

Proposal  for a 

COUNCIL  REGULATION (EC) 

EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTI 
DUMPING DUTY IMPOSED ON IMPORTS OF CERTAIN TYPES 
OF ELECTRONIC MICROCIRCUITS KNOWN AS EPROMS 
(erasable programmable read only memories) 
ORIGINATING IN JAPAN 

(presented  by the Commission) 

Explanatory  Memorandum 

(1) 

The  Commission,  by  Decision  (95/272/EC)  of  15 July  19951  , suspended  the 
definitive  anti-dumping  duty  imposed  on  EPROMs  originating  in  Japan  for  a 

period  of  nine  months,  as  had  been  done  before  in  the  case  of  DRAMs 
originating  in Japan  and  the  Republic  of  Korea2  . 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  anti-dumping  duty  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  anti-dumping  duty,  the  EPROM  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 

sustained  at  least for the  next  12 months. 

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

Community  market  would  not  recur  if  the  suspension  of  the  anti-dumping 

duty would  be extended for a period of one year,  i. e. until April  1997. 

1  O J N ° L 1 6 5,  15.7.1995,  p. 26 
2O J N ° L 1 2 6,  9.6.1995,  p.  58 

I 

(3) 

The  Commission  has  informed  the  complainant  of  its  intention  to  propose  to 

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

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

raised no objections with  regard to such proposal. 

(4) 

The  attached  draft  Council  Regulation  contains  more  detailed  information 

showing  that  the  requirements  contained 

in  Article  14  (4)  of  Council 

Regulation  (EC)  No  384/96  for  the  extension  of  the  suspension  of  the  anti 

dumping duty  are  met. 

(5) 

As  in  the  DRAM  case,  therefore,  it  is  proposed  that  the  Council  decides  to 

extend,  for  a  period  of  one  year,  the  suspension  of  the  anti-dumping  duty 

imposed on imports of  EPROMs originating  in Japan. 

3 

COUNCIL REGULATION (EC) N°... 

of 

EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTS-
DUMPING DUTY IMPOSED ON IMPORTS OF CERTAIN TYPES 
OF ELECTRONIC MICROCIRCUITS KNOWN AS EPROMS 
(erasable programmable  read only  memories) 
ORIGINATING IN JAPAN 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard to  Council  Regulation  (EC)  N° 384/96  of  22  December  1995 
on  protection  against  dumped  imports  from  countries  not  members  of  the 
European Community^1) and in particular Article 14(4) thereof. 

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

Whereas: 

0) 

OJN°L56,  6.3.96 p. 1. 

(1) 

The Council, by Regulation (EEC) 577/91 (2), imposed a definitive anti 
dumping duty on imports into the Community of certain types of electronic 
microcircuits known as EPROMs (erasable programmable read only 
memories) originating in Japan, and falling under CN codes 

8542 11 33, 8542 11 34, 8542 11 35 or 8542 11 36 for finished UV erasable 
EPROMs, 

ex 8542 11 38 for finished Flash E2PROMs, 

ex 8542 11 76 for OTPs, 

ex 8542 11 01 for wafers for all types of EPROMs and 

ex 8542 11 05 for dice and chips for all types of EPROMs. 

(2) 

The Commission, by Decision (95/272/EC) of  15 July  1995(3), suspended the 
definitive  anti-dumping  duty  imposed on  EPROMs originating in Japan  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 anti-dumping duty could 
be suspended for this period. 

(2) 
(3) 

OJ N° L 65, 12.3.91, p.1, as last amended by Regulation (EEC) No 2860/93, OJ L 262 of 21.10.93, p.1 
OJ N°  L 165, 15.7.1995, p.  26 

(3) 

On  8  October  1995  the  Commission  initiated  an  interim  review'^  of  the  ,mti-

dumping  measures  concerning  EPROMs  originating  in  Japan,  pursuant  to 

Article  11 (3)  of  Regulation  (EC)  3283/94. This  review  is at  present  pending. 

(4) 

As  in  the  case  of  another  type  of  electronic  microcircuits,  i.e.  DRAMs<5),  the 
Commission  has,  based  on the  information  available  on the  market  situation, 

in  particular  the  sales  reports  of  the  exporters  concerned,  examined  whether 

the  conditions  for  extending  the  suspension  of  the  anti-dumping  duty  are 

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

which  the  Commission  has  obtained  from  the  Community  producers  and  all 

known  Japanese  exporters  shows  that,  as  the  end  of  the  initial  period  of 

suspension  of  the  anti-dumping  duty  approaches,  the  EPROM  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  (95/272/EC)  have  prevailed.  Market 

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

the next  12 months. 

(4) 
(5) 

OJN°C262, 7.10.95, p. 9 
By Council Regulation (EC) N°399/96 (OJ N° L 55, p1.), the suspension of the anti-dumping 
duties applicable to imports of DRAMs originating in Japan and the Republic of Korea has 
been extended for one year. 

(5) 

However,  it  is  also  considered  that,  in  view  of  the  cyclical  nature  of  the 

EPROM  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,  in  particular  in  Japan, 

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. 

(6) 

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

suspension  of  the  anti-dumping  duty  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  EPROMs  would  recur  on  the  Community  market  as  a 

result  of such extension. 

(7) 

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  duty  for  a  period  of  one  year  and  has  provided  it  with  an 

opportunity to comment. The complainant  raised no objections  in this  regard 

(8) 

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

of the duty concerned, pursuant to Article  14 (4) of  Regulation  (EC)  N° 384/96, 

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

one  year. 

(9) 

The  Commission  will  continue  to  monitor  closely  the  development  of  the 

EPROM-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  duty without  delay. 

(10)  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  EPROM  market.  However,  as  previously  stated,  during  the  period  of  the 

extended  suspension  of  the  anti-dumping  duty, 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. 

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

duty and  raised no  objections. 

HAS ADOPTED THE  FOLLOWING  REGULATION 

% 

Sole Article 

(1) 

The  suspension  of  the  definitive  anti-dumping  duty  imposed  on  imports  of 
certain  types  of  electronic  microcircuits  known  as  EPROMs  (erasable 
programmable  read  only  memories)  originating 
in  Japan  by  Council 
Regulations  (EEC)  N°  577/91  is  hereby  extended  for  a  period  of  one  year 
until 15 April 1997. 

(2) 

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

Done at Brussels, 

_S 

ISSN 0254-1475 

COM(96) 125 final 

DOCUMENTS 

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02  11 

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ISBN 92-78-01864-3 

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