Proposal for a Council Regulation (EC) terminating the anti-dumping proceeding concerning imports of outer rings of tapered roller bearings originating in Japan and repealing the anti-dumping measures imposed on such imports
Date: 1997-05-28
Institutions: European Commission
Subjects: Japan, anti-dumping legislation, anti-dumping measure, bearing, import

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  28.05.1997 
COM(97)  244  final 

Proposal  for a 

COUNCIL REGULATION  (EC) 

terminating the anti-dumping proceeding concerning imports of outer  rings 

of tapered  roller bearings originating in Japan and repealing the anti 

dumping measures imposed on such imports 

(presented by the  Commission) 

EXPLANATORY  MEMORANDUM 

Subject: 

anti-dumping  proceeding  concerning  imports  of  outer  rings  of 

tapered roller bearings originating in Japan 

1.  Please  find  herewith  a  proposal  for  a Council  regulation  terminating  the  anti 

dumping  proceeding  concerning  imports  of  outer  rings  of  tapered  roller 

bearings  originating  in  Japan  and  repealing  the  anti-dumping  measures 

imposed on such imports. 

2. The enclosed  proposal  is the  result of a review of the anti-dumping  measures 

in  force  with  regard  to  the  imports  in  question  which  was  requested  by  the 

Community  industry  and  initiated  by  the  Commission  in  October  1994. 

3.  Further  to  the  investigation  of  the  Commission's  services,  it  was  found  that 

although  the  Community  industry  is still  in  a  precarious  situation, the  imports 

in  question  did  not  in  isolation  have  a  materially  injurious  impact  on  the 

situation  of  the  Community  industry.  The  allegations  set  forth  in  the  request 

for  an  interim  review submitted  by the Community  industry that the  measures 

in  force  were  insufficient  to  offset  increased  injury  are  therefore  refuted. 

Indeed,  it  is  the  opinion  of  the  Commission's  services  that  the  precarious 

situation  of  the  Community  industry  may  rather stem from  imports  from  other 

third countries. 

4.  In addition, the Commission's  services found that it is not  likely that the  repeal 

of  the  anti-dumping  measures  currently  in  force  would  create  a  situation  in 

which  a  materially 

injurious 

impact  of 

these 

imports  would 

recur. 

Given the above findings, it is considered that the  result of the  review of the  anti 

dumping  measures  in  force  with  respect  to  imports  of  the  product  under 

consideration  originating 

in  Japan 

is 

that 

the  anti-dumping  proceeding 

concerning the above-mentioned  imports should be terminated and that the  anti 

dumping measures  in force should be repealed. 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

terminating the anti-dumping proceeding concerning imports of outer  rings 

of tapered roller bearings originating in Japan and repealing the anti 

dumping measures imposed on such imports 

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 9 and Article  11 paragraph 3 thereof, 

Having  regard  to  the  proposal  of  the  Commission  following  consultation  of  the 

Advisory Committee, 

M> 

OJ  N°  L  56,  6.3.1996,  p.  1, amended  by  Council  Regulation  (EC)  N°  2331/96,  OJ  N°  L 

317, 6.12.1996, p. 1. 

cu 

- 2-

Whereas: 

A. 

PROCEDURE 

(1.)  In June  1994,  the  Commission  received  a  request  for an  interim  review of 

the definitive  anti-dumping  measures  on imports of outer  rings of tapered  roller 

bearings  (hereafter  referred  to  as  'Cups')  originating  in  Japan  imposed  by 

Council Regulation (EEC) N° 55/93.(2) This request was lodged by the Federation 

of  European  Bearing  Manufacturers'  Associations  (FEBMA)  on  behalf  of 

Community  producers whose  collective  output was stated to constitute  a  major 

proportion of total Community production of Cups. 

(2.) The  request asserted that the anti-dumping measures in force are not or no 

longer  sufficient  to  counteract  the  dumping  which  is  causing  injury  as  both 

dumping and injury resulting therefrom were alleged to have increased. 

(2) 

O J N ° L 9,  15.1.1993, p. 7. 

- 3-

(3.)  Considering  that there was  sufficient  evidence to warrant  the  initiation  of  an 

interim'  review  under  Article  11 (3)  of  Council  Regulation  (EC)  N°  3283/94  on 

protection against dumped  imports from countries not members of the  European 

Community(3)  the  Commission  published  on  20  October  1994  a  notice  of 

initiation  of  a  review  of  the  anti-dumping  measure  applicable  to  imports  of 

Cups.(4) 

(4.)  The  Commission  officially  advised the  Community  producers,  the  importers 

and  the  Japanese  producers/exporters  known  to  be  concerned  as  well  as  the 

representatives  of Japan of the opening of the investigation and gave the  parties 

concerned the opportunity to  make known their views in writing and to  request  a 

hearing. 

(3) 
(4) 

OJ N° L 349, 31.12.1994, p.  1, replaced by Council Regulation (EC) N° 384/96. 

OJ N° C 292, 20.10.1994, p. 5. 

- 4-

(5.)  The  Commission  sought  and  verified  all  information  it  deemed  to  be 

necessary for the purpose of its determination. 

(6.)  The  investigation  period  applied  in the  present  proceeding  for  establishing 

whether dumping and undercutting existed was from 1 October  1993 to 30 June 

1994.  For the analysis of the trends of the factors analysed for the  purposes of 

establishing  whether  the  Community  industry  suffered  injury  caused  by  the 

imports in question the  period from  1 January  1991 to 30 June  1994  was used. 

In  order to  ensure  comparability  of the  data  relating  to the  investigation  period 

with that  relating to the previous calendar years, this was extrapolated to reflect 

the  situation  in  a  twelve  months'  period.  Since  the  present  interim  review  was 

initiated before the accession of Sweden, Austria and Finland, meaning that the 

investigation  period  ended  before  that  accession,  the  investigation  of  injury  is 

based on an analysis of facts pertaining to the Community of twelve. 

- 5 -

(7.)  The  investigation  has  exceeded  the  normal  time  period  because  of  the 

complexity  of  the  assessment  of  the  injury  and  causality  aspects  of  the 

proceeding,  which  were  mainly  caused  by  the  high  number  and  degree  of 

diversity of the types within the product investigated. 

(8.)  The  complainant,  FEBMA,  lodged  the.request  for  an  interim  review  on 

behalf of the following producers: 

FAG Kugelfischer Georg Schàfer KGaA (Germany); 

SKF GmbH (Germany); 

SKF Industrie SpA (Italy); 

SKF Espagnola S.A. (Spain); 

Timken France (France) 

British Timken (United Kingdom); and 

Société Nouvelle de Roulements (France). 

(9.) During the investigation period, the following companies exported Cups from 

- 6-

Japan to the Community: 

Koyo Seiko Co. Ltd. (Osaka); and 

NTN Corporation (Osaka). 

(10.)  Both  of  these  companies  co-operated  in the  investigation  by submitting  a 

response  to  the  Commission's  questionnaire  and  on the  spot  verification  visits 

were carried out on their premises by the Commission's services. 

(11.)  No  unrelated  importers  co-operated  with  the  Commission  in  the  present 

investigation. 

- 7-

(12.)  In  addition,  numerous  end-users  submitted  their  comments  which  were 

taken into account when they were substantiated by supporting evidence. 

B. 

PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT 

(13.)  The  product  under  consideration  is outer  rings of  tapered  roller  bearings 

which is a component of tapered roller bearings. 

(14.)  In Japan and in the Community, Cups are mainly sold to two categories of 

customers, namely industrial users and distributors. 

- 8 -

(15.)  It  should  be  noted  that  complete  tapered  roller  bearings  include  the 

following components: (1-) an inner ring, being a cone-shaped  ring, made  of the 

same material as the outer ring (the inner and outer ring are often stamped from 

the  same  piece  of  material);  (2)  tapered  anti-friction  rollers,  fitted  on the  inner 

ring and  which  allow  it to  move  in  relation to the  outer  ring; (3)  a  cage, which 

holds the  rollers in place on the inner ring; and (4) an outer ring or cup which is 

the female  part  into which the male  part, the cone  (consisting of the  inner ring, 

rollers  and  cage),  is  assembled  in  order  to  produce  a  complete  tapered  roller 

bearing. 

(16.)  In connection with the present investigation, FEBMA  and certain Japanese 

producers submitted arguments in favour of the Commission regarding complete 

tapered  roller  bearings  and  Cups  as  one  like  product  and  thus  merging  the 

present  review 

investigation  with  the  investigation  concerning 

imports  of 

complete tapered roller bearings originating in Japan.(5) 

(5) 

Commission  Decision  of  3  December  1996  terminating  the  anti-dumping  proceeding 

concerning imports of tapered roller bearings originating in Japan. OJ N° L 10,14.1.1997, 

p. 34. 

- 9-

(17.)  The  above  interested  parties  have  stated  that  Cups,  just  as  cones,  the 

latter  being  covered  by  the  proceeding  concerning  complete  tapered  roller 

bearings,  are  merely  a  component  of  the  finished  product  and  are  only  sold 

separately when delivered  in conjunction with the other constituent  components 

of tapered roller bearings in order to be assembled into a complete tapered roller 

bearing at the premises of the final customer. 

(18.)  However,  in line with the  reasoning set forth by the Court of  First  Instance 

of the  European  Community,(6)  it is considered that tapered  roller bearings  and 

Cups constitute separate  products, each of which can legally be the subject of a 

separate anti-dumping proceeding. 

(6) 

Case  T-166/94  Koyo  Seiko  Co.  Ltd. v  Council  of  the  European  Union. Judgment  of  14 

July 1995. 

- 1 0-

(19.)  It was found that Cups produced in Japan, sold domestically and exported 

to the Community and Cups produced by the Community producers and sold on 

the Community  market are alike  in their physical characteristics  and uses. They 

were  therefore  considered  as  a  like  product  in  accordance  with  Article  1(4)  of 

Council Regulation (EC) N° 384/96. 

C. 

DEFINITION OF THE COMMUNITY  INDUSTRY 

(20.)  One  Japanese  owned  companies  produced  tapered  roller  bearings  and 

components thereof,  including Cups, in the Community during the  period  under 

consideration.  This,  company,  however,  was  not  considered  part  of  the 

Community  industry within the meaning of Article 4(1 )(a)  of  Regulation  (EC)  N° 

384/96. This approach was considered justified as the company  is related to an 

exporter from Japan of the product under investigation. The company sell all its 

production  to  the  sales  subsidiaries  located  in  the  Community  and  equally 

related  to  the  exporter  from  Japan  and  which  are  also  involved  in  selling 

imported Cups originating in Japan. It is considered that  in those  circumstances 

the  producing  company  located  in the  Community  might therefore  benefit  from 

any  unfair  business  practices.  In  such  circumstances,  the  producer  was  not 

considered  to  be  behaving  as  a  normal  Community  producer,  but  rather  as  a 

complementary source of supply for an exporter accused of practising dumping. 

•' 

-11  -

(21.)  One  of the  Community  producers mentioned  in recital  8  did  not submit  a 

response  to  the  Commission's  questionnaire  within  the  deadline  set  by  the 

Commission.  In  view  of  this  non-cooperation  on  the  part  of  the  company  in 

question,  it  was  excluded  from  the  definition  of  Community  industry  for  the 

purpose of the  injury determination  in connection with the present investigation. 

Consequently,  for the  remainder  of this  analysis, the  term  Community  industry 

refers to the  cooperating  Community  producers which supported the complaint, 

whose  collective  output  of  Cups  constitutes  a  major  proportion  of  total 

Community  production within the meaning of Article 4(1)  of  Regulation  (EC)  No. 

384/96. 

D. 

INJURY 

(22.)  In view of the fact that the product under investigation in the present review 

is  a  component  of  tapered  roller  bearings,  the  majority  of  the  Community 

producers  could,  in  certain  instances,  not  distinguish  in their  internal  accounts 

between data relating to complete tapered roller bearings and Cups respectively. 

Thus, where necessary, it was considered appropriate to resort to an application 

of Article 3(8)  of Council  Regulation  (EC)  N° 384/96  which provides that,  "if  [...] 

separate  identification  of  [the production, sales and profits of the  product  under 

investigation]  is  not  possible,  the  effects  of  the  dumped  imports  shall  be 

assessed  by examination  of the  production  of the  narrowest  group  or  range of 

products,  which  includes the  like  product, for which  necessary  information  can 

be provided". 

- 1 2-

(23.)  In  the  present  review,  the  narrowest  group  of  products  for  which  the 

Community  producers  could  provide  the  necessary  information  on  the  above 

factors  is  complete  tapered  roller  bearings.  Whenever  the  above-mentioned 

principle  of  estimation  has  been  applied  in  the  analysis  below,  this  has  been 

clearly indicated. 

(24.) Also, as in the initial investigation, accurate officially compiled statistics are 

not available  since the  combined  nomenclature  heading  under which  Cups  are 

classified  covers  more  than  just  that  product.  The  injury  analysis  is  therefore 

based  on  data  provided  by  the  Community  producers  and  the  Japanese 

exporters and on estimated data based on information submitted  by the  parties 

concerned. 

Community consumption 

- 1 3-

(25.)  Between  1991  and the  investigation  period, the estimated consumption of 

Cups  in  the  Community  (of  twelve)  decreased  by  4.2  percent.  The  above 

decrease  of  the  market  is  the  result  of  the  general  evolution  of  the  business 

cycle  on  the  Cup  market  whose  size  varies  according  to  the  general  level  of 

activity on the part of the users of Cups. 

Volume, sales and market share of imports 

(26.)  It is considered that, in this specific case, only sales of Japanese  Cups on 

the open market to independent purchasers, i.e. sales of Cups released as such 

for  free  circulation  in  the  Community,  are  relevant  for  the  injury  determination 

since only such sales are  in direct competition with the sales of the  Community 

industry. 

- 1 4-

(27.)  Between  1991  and  the  investigation  period  sales  of  imported  Cups 

originating in Japan to independent  purchasers in the Community  (expressed in 

pieces) decreased by 35 percent. In line with this decrease in sales and contrary 

to the  allegations  by the  Community  industry, the  resulting  market  share  of the 

imports  under  consideration  decreased  steadily  from  a  market  share  of  6.6 

percent in 1991 to a market share of 4.5 percent in the investigation period. 

Prices of imports 

(28.)  The  prices  charged  by the  Japanese  producers  were  compared  with the 

prices  charged  for  identical  types  by  the  Community  producers  which  could 

provide transaction  by transaction  data  for Cups  sold separately  by channel in 

the  four  most  important  Member  States  (Germany,  the  UK,  France  and  Italy 

which,  in  view  of  the  volumes  of  sales  made  in  those  Member  States,  were 

considered  as  being  representative  of  the  situation  in  the  entire  Community). 

Based  on  this  analysis,  it  was  found  that  undercutting  on  the  part  of  the 

Japanese producers did occur during the investigation period. 

- 1 5-

(29.)  However,  no  pertinent  conclusions  can  be drawn from this  analysis  due  to 

the  fact  that  the  Japanese  companies  involved  sell  only  a  limited  number  of 

types  which  are  identical  or  directly  comparable  to  those  manufactured  by  the 

Community  producers  in sufficient  quantities to  render  meaningful  a  comparison 

with European producers. Under these conditions, no individual margins for price 

undercutting have been established for each company involved. 

Situation of the Community industry 

- 1 6-

Sales and market shares 

(30.)  The  quantity  of  Cups  manufactured  and  sold  in  the  Community  by  the 

Community industry (expressed in pieces) decreased by 16.5 percent during the 

period  under  consideration.  The  resulting  market  share  of  the  Community 

industry decreased in the same period from around 84 percent in 1991 to around 

74 percent at the end of the investigation period. 

(31.)  The  market share of imported Cups, sold separately,  manufactured  by the 

Community  producers  outside  the  Community  of  twelve  (in  Austria  and  the 

United  States)  at  long-established  manufacturing  facilities  increased  from  3.6 

percent to 7.3  percent.  In addition, the market share of  imports from other third 

countries increased from 5.5  percent in 1991 to 11.8 percent in the  investigation 

period. 

Production. capacity and capacity utilisation 

- 1 7-

(32.)  For  the  reasons  given  above  in  recitals  21  and  22,  the  analysis  of  the 

evolution  of  production,  capacity  and  capacity  utilisation  is  based  on  data 

regarding complete tapered roller bearings. 

(33.) As to production, between  1991 and the investigation period, production of 

the Community industry decreased by 10.8 percent. 

(34.)  In  the  same  period  the  production  capacity  of  the  Community  industry 

decreased  by  9.3  percent  whilst  its  capacity  utilisation  decreased  from  88.8 

percent to 86.6 percent. 

Prices and profitability 

- 1 8-

(35.)  The  evolution  of  prices  between  1991  and  the  end  of  the  investigation 

period  in  the  Community  of  the  Cups  sold  separately  by  the  Community 

producers  was  investigated.  In  view  of  the  argument  by  the  Community 

producers  that  the  Japanese  pricing  policy  affected  the  prices  applied  by  the 

Community  producers,  this  irrespective  of  whether  the  types  sold  by  the 

Japanese  producers were identical to those sold by the Community producers or 

not,  the  analysis  of  the  evolution  of  the  prices  applied  by  the  Community 

producers  comprised  all types sold  by these  producers  during the  investigation 

period  and  not only those which were  considered  as  identical to those  sold by 

the Japanese producers. 

(36.)  This  analysis  was  made  for  the  prices  charged  by  the  Community 

producers  (all  sales  channels)  in  Germany,  the  UK,  France  and  Italy.  On  this 

basis,  it was found that  the  prices  in the  Community  of  Cups  remained  stable 

over  the  period  investigated.  Indeed,  the  prices  of  the  types  sold  by  the 

Community industry during the investigation period, on a weighted average basis 

(comprised  of  the  prices  of  all  the  Community  producers  for  their  sales  to  all 

categories of customers) increased by 1.88 percent. 

- 1 9-

(37.)  In this  respect,  it should  be  noted that,  indeed, the  return  on sales  of the 

Community  producers  specifically  relating  to  complete  tapered  roller  bearings 

during  the  period  under  consideration  developed  from  a  loss  of  around  11 

percent  in  1991  to a  loss of around  17 percent  in  1993.  Between  1993 and the 

end  of  the  investigation  period,  the  situation  of  the  Community  industry 

improved,  however,  to  a  loss  of  around  7  percent,  thus  showing  a  certain 

recovery. 

Employment 

(38.)  Between  1991  and  the  investigation  period,  in  the  Community  industry 

employment,  relating  to  the  manufacture  of  complete  tapered  roller  bearings, 

decreased by 27.4 percent. 

Conclusion on injury 

- 2 0-

(39.)  Based on the above analysis, it is concluded that, during the period under 

investigation,  the  Community  industry  suffered  certain  difficulties  but  improved 

its financial situation. 

E. 

CAUSALITY 

(40.)  In  accordance  with  the  provisions  of  Regulation  (EC)  N°  384/96,  the 

Commission  therefore  investigated  whether  the  volumes  and  prices  of  the 

imports concerned were  responsible for the situation of the Community industry 

and  had  an  impact  thereon  to  a  degree  which  enables  it  to  be  classified  as 

material within the meaning of Article 3(6)  of  Regulation (EC)  N° 384/96.  In this 

investigation,  care  was  taken  to  ensure  that  any  impact  on  the  Community 

industry caused by other factors was not attributed to the imports concerned. 

- 2 1-

(41.)  The  imports from Japan  and their  market  shares  in the  Community  have 

been  falling  over  the  period  examined  for  the  analysis  of  injury.  The  market 

share of own-imports on the part of the Community producers from countries in 

which  it  has  long-established  manufacturing  facilities  and  imports  from  other 

third country imports have increased by a rate which more than compensates for 

the registered decrease in the Community industry's market share. 

(42.)  As to prices, the Community  industry has claimed that the  undercutting or 

lower  price  offers  on the  part  of  the Japanese  exporters  has  had  the  effect  of 

imposing  pressure  on  prices  which  forced  the  Community  Cup  producers  to 

follow  the  prices  downwards  in  order  to  defend  their  market  shares  at  great 

financial expense. It is considered that the analysis of the evolution of the prices 

applied  by  the  Community  producers  refutes  the  conclusion  submitted  by  the 

Community  producers  that  the  imports  had  the  effect  of  depressing  or 

suppressing prices applied by the Community producers during the period under 

consideration  to  an  extent  which  may  be  characterised  as  material  within  the 

meaning of Article 3(3) of Council Regulation (EC)  N° 384/96. With regard to the 

submission  of the  Community  industry that  it was prevented  from  increasing its 

- 2 2-

prices  due  to  Japanese  price  undercutting,  in  particular  for  major  high  volume 

customers,  it is considered that  if such price suppression took  place  in order to 

maintain  volumes  and  market  shares  which  in  fact  to  a  large  extent  was 

accomplished, the  result would have been increased financial  losses.  However, 

the above-mentioned findings of the investigation demonstrate the opposite. The 

statements  on  the  part  of  the  Community  industry,  that  prices  are  highly 

depressed or suppressed to a material degree, are  not substantiated  especially 

in view of the fact that the period in question was characterised  by a recession. 

No price depression was found and the price increase found cover a substantial 

part of the general cost increases registered in the industry. 

(43.) As regards the Community industry's reduction in capacity, the Community 

industry has argued that it had to reduce its capacity and investment  during the 

reference  period in order to lower the break-even  point of the  industry and thus 

to reduce its losses. This leads to a situation where Community producers were 

not  able to  meet  customer  requests during the  year  1995,  which was  after  the 

- 2 3-

investigation  period,  but  during  which  the  consumption  of  Cups  improved.  In 

order to invest in new capacity, the Community producers claim that they should 

reach a substantially higher return on sales that what was registered  during the 

investigation period. 

(44.)  While  information  relating  to  a  period  subsequent  to  the  investigation 

period  normally  cannot  be taken  into  account,  it  is acknowledged  that  in  1995 

demand for complete tapered  roller bearings and components thereof  boomed. 

For  this  reason  also,  the  Community  industry  published  excellent  results  (also 

financial) for  1995.  It is acknowledged that there have been shortages in supply 

from the Community producers' manufacturing facilities in the Community during 

this  year.  However,  it  is  considered  that  it  is  normal  business  behaviour  to 

reduce  costs  and  this  the  more  so  when  the  industry  is  in  an  economic 

- 2 4-

recession. On the other hand, during a booming market, it may also be normal to 

increase  capacity  and  to  finance  this  by  normal  financial  resources.  This 

capacity  restriction  should therefore  not be attributed to the  imports in question 

and this the  more  so as the volume  of these  imports decreased  more than the 

capacity  restriction  of  the  Community  industry.  In  addition,  this  capacity 

restriction  must  be seen  in conjunction with the  apparent  shift  of  production on 

the part of the Community industry to long established manufacturing facilities in 

countries outside the Community of twelve. 

(45.)  As  to  the  decrease  in  employment,  during  the  period  in  question,  the 

Community  industry  shifted  capacity within their  global  manufacturing  structure 

and  undertook  important  restructuring  efforts  to  improve  productivity  in general 

which  have  been  reflected  in  a  decrease  in  employment  which  cannot  be 

attributed to the imports in question. 

Conclusion 

-25 

(46.)  Given  the  above  findings,  it  is concluded that  the  imports  in question did 

not,  in  isolation,  have  a  materially  injurious  impact  on  the  situation  of  the 

Community  industry  and  the  allegations  set  forth  in the  request  for  an  interim 

review  submitted  by the  Community  industry  that  the  measures  in  force  were 

insufficient  to  offset  increased  injury  are  therefore  refuted.  The  precarious 

situation of the Community  industry may rather stem from other factors such as 

other  third  country  imports  and  the  recession  which  prevailed  during  the 

investigation  period.  Thus,  the  measure  under  review  did  have  the  desired 

effects, i.e.  to reduce the  impact of the imports in question  below the degree of 

material within the meaning of Article 3(6) of Council Regulation (EC) N° 384/96. 

(47.)  The  question  is then whether  the  removal  of this  measure  would  reverse 

this situation. 

F. 

LIKELY  EFFECTS OF THE REPEAL OF THE MEASURES  IN FORCE 

- 2 6-

(48.) As was demonstrated above, the facts established show that the measures 

under review have reduced the injurious impact of the imports in question below 

the  degree  of  material within the  meaning of Article 3(6)  of  Regulation  (EC)  N° 

384/96. 

(49.)  The  Community  industry  has  submitted  that  if  the  measure  currently  in 

force would  be  repealed  it is likely that  material  injury caused  by the  imports in 

question would recur. 

(50.)  It  is  considered  that  it  is  not  likely  that  the  removal  of  the  anti-dumping 

measure  under  review  would  create  a  situation  in which  a  materially  injurious 

impact of these imports would recur. This position is based on an analysis of the 

trend of the Japanese  market shares, the  lack of any material effect  thereof  on 

the  Community  producers'  pricing  and  the  significant  increase  in  imports  from 

sources  other  than  Japan  including  from  facilities  related  to  the  Community 

producers. 

- 2 7-

(51.) Other elements should also be high-lighted in this regard, such as the high 

market  share  held  by the  Community  industry,  the  fact  that  its sales  are,  to  a 

significant extent, regulated by long term contracts with large industrial users and 

the  fact  that  the  Community. industry,  both  presently  and  historically  has 

constituted a secure source of supply for the Community user industry due to its 

proximity and high level of quality and service levels. 

(52.)  In  addition,  official  statistics  demonstrate  that  production  capacity  for 

bearings  in  Japan  has  remained  stable  since  1990  until  1994  and  increased 

subsequently in line with the recovery of demand world-wide. However, further to 

an  analysis  of  exports  from  Japan  to  countries  other  than  the  Community,  it 

would  appear  that  there  is  no  sufficiently  disposable  capacity  in  Japan  to 

produce substantially increased quantities for export to the Community. 

- 2 8-

(53.)  Finally,  it  should  be  stressed  that  the  situation  described  above  for  the 

Community industry during the investigation period has shown a certain recovery 

in  the  market  for  tapered  roller  bearings  and  components  thereof.  This 

development  was  sustained  and further  improved  after  the  investigation  period 

as illustrated by general results of the major Community producers published for 

1995. It is not considered as likely that this situation would change as a result of 

the lapse of the current measures due to the immaterially injurious impact of the 

imports 

in  question  on  the  situation  of  the  Community  producers  as 

demonstrated above. 

G. 

DUMPING 

-29 

(54.)  In  view  of  the  above  conclusion,  it  was  not  considered  necessary  to 

analyse whether the imports in question were dumped, and if so, if the dumping 

margin thereof  had increased or not since this would not have any relevance on 

the above analysis and would consequently not alter the conclusions reached. 

H. 

CONCLUSION 

(55.)  Given  the  above  findings,  it  is  considered  that  the  result  of  the  interim 

review  of  the  anti-dumping  measures  in force  with  respect  to  imports  of  Cups 

originating  in  Japan  is  that  the  anti-dumping  proceeding  concerning  these 

imports  should  be  terminated  and  that  the  anti-dumping  measures  in  force 

should be repealed. 

(56.) The  Commission  informed the interested parties, including the Community 

industry,  of  its findings. After  having  been  informed  by the  Commission  of  the 

above  facts,  findings  and  conclusions,  representatives  of  the  Community 

industry made further  representations, both in writing and orally, concerning the 

impact  of  the  Japanese  imports  in  question  on  the  Community  industry. 

However, 

it 

is  considered  that  these  representations  could  not,  after 

examination,  reverse  the  above  conclusions.  Certain  Member  States  raised 

objections to this course of action. 

HAS ADOPTED THE FOLLOWING REGULATION: 

- 3 0-

Article 1 

The  anti-dumping  proceeding  concerning  imports  of  outer  rings  of  tapered  roller 

bearings  falling  within  with  CN  Code  N°  ex  84829900  originating  in  Japan  is 

terminated  and  the  anti-dumping  measures  imposed  Council  Regulation  (EEC) 

N° 55/93 on such imports are hereby repealed. 

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 

ISSN 0254-1475 

COM(97) 244  final 

DOCUMENTS 

EN 

02  11 

Catalogue  number  :  CB-CO-97-236-EN-C 

ISBN  92-78-20120-0 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg