Proposal for a Council Regulation (EC) imposing a definitive anti-dumping duty on imports of advertising matches originating in Japan and collecting definitively the provisional duty imposed
Date: 1997-10-02
Institutions: European Commission
Subjects: Japan, anti-dumping duty, dumping, manufactured goods, packaging

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  02.10.1997 
COM(97) 487  final 

Proposal  for a 

COUNCIL REGULATION  (EQ 

IMPOSING A DEFINITIVE ANTI-DUMPING  DUTY 

ON IMPORTS OF ADVERTISING  MATCHES ORIGINATING  IN JAPAN 

AND COLLECTING DEFINITIVELY  THE PROVISIONAL DUTY  IMPOSED 

(presented by the  Commission) 

Explanatory Memorandum 

By regulation (EC) No  1092/97 

, the Commission imposed provisional  anti-dumping 

duties on imports of advertising matches falling within CN Code 3605  00  00 and 

originating in Japan. 

Subsequently, a number of parties presented written comments, requested and were 

granted hearings.  Their comments were taken into account where appropriate.  The 

Commission continued to seek all information  it deemed necessary for its  definitive 

findings. 

Japanese exporters requested that the proceeding be terminated because the duration 

of the investigation has exceeded the period set in art. 7. (9) (a) of Regulation 

2423/88.  According to this provision an investigation shall be concluded  normally 

within one year of the initiation of the proceeding.  It is proposed to reject  such 

request on the ground of the complexity of the investigation, as explained  in detail in 

recitals 2 and 3 of the proposed regulation. 

Some Japanese exporters made comments on the calculation of the provisional 

dumping margins. After  careful  analysis, two of the provisional dumping  margins 

were reduced. (See recital 27). 

Comments were raised on injury,  notably on cost allocation and market  segments 

targeted by the dumped  imports.  Injury  margins were marginally  modified  to take 

proper account of the adjustment  of import prices to dealer level  Remarks were also 

made on causality on account of the decreasing market for advertising matches. 

The Commission, on the basis of the deterioration of several injury  indicators, 

concluded that the Community  industry has suffered  material injury  caused by 

dumped imports and that it is in the Community  interest to adopt definitive  measures. 

It is therefore  proposed to impose definitive  duties on the imports of advertising 

matches originating  in Japan, ranging from  9.8 % to 43.2%. 

' O J N o L 1 5 8,  17.06.97, p. 8 

COUNCIL REGULATION  (EC) No.... 

OF 

IMPOSING A DEFINITIVE ANTI-DUMPING  DUTY 

ON IMPORTS OF ADVERTISING  MATCHES ORIGINATING  IN JAPAN 

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  384/96  of  22  December  1995  on 

protection  against  dumped  imports  from  countries  not  members  of  the  European 

Community1,  as  amended  by  Council  Regulation  (EC)  No  2331/962,  and  in  particular 

Article 23 thereof, 

Having  regard  to  Council  Regulation  (EEC)  No  2423/88  of  11 July  1988  on  protection 

against  dumped  imports  or  subsidized  from  countries  not  members  of  the  European 

Economic Community3,  and in particular Article  12 thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the 

Advisory  Committee 

Whereas: 

A.  PROVISIONAL  MEASURES 

(1)  By  Commission  Regulation  (EC)  No  1092/974  (hereinafter  referred  to  as  the 

provisional  duty  Regulation)  provisional  duties  were  imposed  on  imports  into  the 

Community  of  advertising  matches  falling  within  CN  code  3605  00  00  and 

originating  in Japan. 

' 
2 
3 
4 

O J N oL  56, 06.03.1996, p. 1. 
OJNoL317,  06.12.1996, p. 1. 
OJ No L 209, 02.08.1988, p.!. 
OJ No L  158,  17.06.1997, p. 8. 

<X. 

B.  SUBSEQUENT  PROCEDURE 

1.  Duration of provisional  measures 

(2) 

In  July  1997  exporters  representing  a  significant  percentage  of  the  trade  involved 

objected  to  the  Commission's  proposal  to  extend  the  4  months  validity  of  the 

provisional  anti-dumping  duties  for  two  more  months  as  allowed  by  Regulation 

2423/88  (hereinafter  referred  to  as  the  Basic  Regulation).  In  support  of  this 

* 

position, they argued that the investigation  had already taken  an excessive  length of 

time, thus prolonging uncertainty and  damaging their business. 

(3) 

This objection  seems to be in contradiction  with the request  made by the  exporters 

concerned  that  the Commission  should  analyse in more depth  several  key  issues  in 

the  investigation:  it  should  be  recalled  that  the  Commission  has  already  stated  in 

recital  (7) of the provisional  duty Regulation  that the present  investigation  has been 

particularly  complex. 

In  these  circumstances,  further 

in  depth  analysis  of 

arguments  put  forward  by these  parties,  as  well  as extensions  granted  to  them  for 

submissions  and replies, had to be restricted to a minimum. 

(4)  Following  the  imposition  of  provisional  anti-dumping  measures,  the  following 

interested parties submitted comments in writing : 

(a)  producers  / exporters in Japan : 

- Kobe Match Co. Ltd, Ibo-gun 

-Yaka Chemical  Industry  Co. Ltd, Himeji, 

-Daiwa Trading & Industrial Co.Ltd, Himeji, 

-Harima Match Company  Co.Ltd, Himeji, 

(b)  the representative  of the Community industry on behalf of their clients. 

(c)  importers  located in the Community : 

- Advertising  support Werbetrager Vertriebs GmbH 

(5)  The  parties  who  so  requested  were  granted  an  opportunity  to  be  heard  by  the 

Commission. 

^•-«tk 

(6)  The  Commission  continued  to  seek  and  verify  all  the  information  it  deemed 

necessary  for  the  purpose  of  its  definitive  findings  within  the  period  of  time 

available. 

(7)  Parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 

which  it  was  intended  to  recommend  the  imposition  of  definitive  anti-dumping 

duties  and  the  definitive  collection  of  amounts  secured  by  way  of  provisional 

duties.  They  were  also  granted  a  period  within  which  to  make  representations 

subsequent to this disclosure. 

(8)  The  comments  submitted  by  the  interested  parties  were  considered;  and,  where-

appropriate,  taken  into  account  in  the  definitive  findings  to  the  extent  that  they 

were fully  substantiated. 

2.  Request for termination of proceeding 

(9) 

Japanese exporters  requested  that the proceeding be immediately  terminated  on  the 

ground  that  the Commission  had  violated  Article  7(9)  (a) of  the  Basic  Regulation. 

They  claimed  that  the  investigation  was  a  very  ordinary  one  and  that  it  was  veiy 

likely  that  it  could  have  been  concluded  within  the  time  limit  provided  for  in  the 

Basic Regulation. 

(10)  As already mentioned in recital (7) of the provisional  duty Regulation,  the length of 

the  investigation  was  mainly  due  to  its  complexity,  particularly  the  detailed 

examination  of the many figures  and arguments put forward  as well  as the  different 

issues and problems which arose in the course of the investigation. 

In  this  respect,  given  the  claim  of  the Japanese  exporters  and  the  views  expressed 

by other interested  parties on the duration  of the investigation,  it seems  appropriate 

to  explain  in  some  detail  the  main  events  which  had  a  significant  impact  on  ils 

duration. 

(11)  Following the initiation  of the investigation  in August  1994, three different  types  oir 

questionnaires  were sent  to some  15 different  companies  in  the  Cpmmunity  and  in 

Japan.  Verification  visits  were  conducted  and  preliminary  results  were  reached 

within the first  half of  1995. 

(12)  As indicated  in recital (39) of the provisional duty Regulation,  the investigation  had 

then  shown  that  sales  made  by  Japanese  exporters  in  the  Community  were  not  at 

the  same  level  of  trade  as  the  large  majority  of  the  Community  industry  sales. 

Accordingly  a  level  of  trade  adjustment  had  to  be  calculated.  Considering  the 

importance of the adjustment,  in particular its direct impact on the undercutting and 

underselling  margins,  and  consequently  on  the  level  of  the  possible  anti-dumping 

duties, this  issue was carefully  considered  before  a provisional  decision  was  taken. 

This  already  indicates  that,  contrary  to  the  allegation  made  by  some  Japanese 

exporters, complex  issues had to be dealt with in this investigation.  A considerable 

amount  of  time  had  to  be  spent  on  assessing  the  level  of  trade  adjustment  and  a-

preliminary conclusion on this issue could not be made until the end of  1995. 

(13)  In the first  half  of  1996, the representative  of the Community  industry  emphasised 

the  weight  and  importance  of  the  segmentation  of  the  marketinto  three  main 

categories  of  customers.  In  this  respect,  the  Community 

industry  supplied 

complementary information  on the link between the segmentation  of the  market and 

the level of prices and relative costs, thus elaborating on  the data already  submitted 

in the responses to the questionnaire. 

In  accordance  with  Article  7  (2)  (a)  of  the  Basic  Regulation,  the  Commission 

verified  and  analysed all the substantiated  complementary  information  supplied  and 

carried  out  the  necessary  reconciliation  with  the  verified  responses 

to  the 

questionnaire  of  the  Community  industry  and  the  Japanese  exporters.  These 

additional  tasks  took until the end of 1996. 

(14)  Consequently,  it  has  to  be  pointed  out  that  contrary  to  the  allegation  of  some 

Japanese  exporters,  the  Commission  did  not  accept  any  new  responses  to  the 

questionnaire  from  the  Community  industry  years  after  the  deadline  set.  but 

considered  it  appropriate  to  investigate  further  substantiated  information  which 

completed  the responses already  received. 

(15)  During  1996,  several  other  problems  had  to  be  solved.  Thus,  some  unrelated 

importers  and  one  Community  producer  itself  importing  dumped  advertising 

matches from  Japan, who were originally not opposed to the proceeding,  made their 

views  known  and  put  forward  arguments  related  to  the  assessment  of  (he 

Community  interest.  All  the  submissions  made,  in  some  cases  received  late  in 

1996, had to be given due consideration. 

(16)  In  1997  the  Commission  became  aware  that  one  Japanese  exporter  might  have 

provided  misleading  information  during  the  investigation  and  requested  that 

additional  information  be  provided  in  order  to  take  a final  decision  on  the  matter. 

Conclusive evidence was only received recently. 

(17)  In the  light  of  the  above  facts  and  considerations,  even  though  the  duration  of  the 

investigation  was long, the Council refers  to the statement'made in recital  (7) of the 

provisional  duty  Regulation,  namely  that.the  length  of  the  investigation  is  mainly 

attributable  to  its  complexity  and,  therefore,  considers  that  there  is  no  reason  for 

terminating the proceeding on these grounds. 

C. PRODUCT CONCERNED AND LIKE PRODUCT 

(18)  For the purpose of its preliminary  findings,  the Commission  considered  advertising 

matches  produced  and  sold  in  the  Community,  produced  and  sold  in  Japan,  and 

those exported  to the Community  from  Japan  as  'like products'  within  the  meaning 

of  Article  2  (12)  of  the Basic  Regulation  because  they  are either  identical  or  have 

characteristics closely resembling each other. 

(19)  An  importer  provided  a  list  of  around  50  models  which  Japanese  exporters  can 

offer  to  their  Community  clients  alleging  that  the  Community  industry  can  only 

offer  a few  models. 

(20)  It  should  be  pointed  out  that  not  all  those  Japanese  models  are  also  sold  in  the 

Community;  they are simply  part of a list of models  that the Japanese  exporters  are 

offering  to their Community  customers. Furthermore, the investigation  contradicted 

the  allegation  of  another  importer  that  the  Community  industry  does  not  offer,  in 

contrast  to  Japanese  exporters,  a  wide  range  of  models  of  advertising  matches. 

Indeed,  it  was  found  that  the Community  industry  sold  over  30 different  models  to 

its  customers  and  that  numerous,  other  personalised  models  had  been  produced  to 

clients'  specifications. 

(2iy  Since  no  other  comments  were  received  on  the  product  concerned  and  the 

definition  of the  'like product'.  The findings  made on this issues, as established  in 

recital (9) of the provisional regulation are  confirmed. 

D.  DUMPING 

1.  Normal value 

(22)  Before 

imposition  of 

the  provisional  measures, 

the  Commission 

received 

information  that  the  relationship  between  the  producer-exporter  YAK A  with 

another  Japanese  producer  -  Nittosha  Match  Company  Ltd.,  which  did  not  make 

itself  known  in  the  framework  of  this  proceeding  - might  not  only  be  limited  to a 

relatively  small  share-holding.  The  Commission  considered  that  it  could  not  be 

excluded  that YAKA's export prices might have been influenced  by its relationship 

with  Nittosha,  which  would  render  YAKA's  reply  to  the  questionnaire  unreliable 

for  the  purpose  of  this  investigation.  The  Commission  informed  YAKA  forthwith 

of the serious implications this might have. 

Nittosha  eventually 

informed 

the  Commission 

that  during 

the  period  of 

investigation  on dumping it had exported to the Community  the product  concerned: 

the quantities  it exported,  however,  had been  négligeable  in  relation  to  the  exports 

made  by  Yaka  during  the  same  period..  Under  these  conditions,  exports  from 

Nittosha  could  not  have  influenced  those  of  Yaka  ;  moreover,  based  on  verified 

information  Yaka  demonstrated  that  transactions  between  the  two  companies  had 

not been influenced  by the existence of the small shareholding. 

It  was  concluded  that  there  was  no  reason  to  reverse  the  findings  in  respect  of 

YAKA as an independent exporter from Japan. 

(23)  One  Japanese  producer  claimed  that  for  export  orders  of  5,000  units  the  normal 

value  should  exclusively  be  based  on  such  quantities  and  not  also  on  orders  fol 

lower quantities  since orders of for instance  1,000  or 2,000 units  are  usually  sold at 

higher prices. 

Firstly,  it should  be noted  that  for  the purpose of this proceeding  an  order  category 

of  up  to  5,000  units  was  defined  by  this  producer  in  its  response  to  the 

questionnaire.  Secondly,  it  was  found  for  this  industry  that  for  orders  up  to  5,000 

units no distinct  difference  in prices exists and  that orders of substantially  less  than 

5,000 units  only  represent  a relatively  small  part  of  the category  up  to  5,000  units. 

Thirdly, the normal value and the export price were both established  on the basis of 

the same categories  of products  and so the comparison  takes into account  the  order 

sizes in as far as they are considered to be relevant by industry standards. 

Consequently, the claim has to be rejected. 

(24)  No  further  comments  were received  on the determination  of  the normal  value. The 

Council  therefore  considers  that  the findings  as established  in  recitals  (10)  to  (J7) 

of the provisional duty Regulation are to be  confirmed. 

2.  Export price 

(25)  As  no  comments  were  received  on  the  determination  of  the  export  price  as 

established  in  recital  18 of  the  provisional  duty  Regulation  the  Council  considers 

that the findings  made therein are to be  confirmed. 

3.  Comparison 

(26)  One Japanese  producer  claimed  that no adjustment  should  be  made  for  salesmen's 

salaries  as  on  export  sales  no  salesmen  were  involved.  During  the  on  the  spot 

verifications,  at the premises of the company concerned, it was established  however 

that  salesmen  were  indeed  involved  in  the  export  of  advertising  matches. 

Consequently,  in  order  to allow  for  a fair  comparison,  an  adjustment  was  made  to 

the export  price  on  the basis  the corresponding  cost  incurred  in  export  sales  of  the 

product  concerned. 

(27)  The  same  Japanese  company  repeated  its  claim,  already  made  at  the  provisional 

stage  of  the  investigation,  to establish  the  normal  value  only  on  sales  to  unrelated 

distributors  as,  according  to  this  company,  export  sales  were  taking  place 

exclusively  at this level of trade. 

Recital  (20)  of  the  provisional  Regulation  explains  why  the  claim  could  not  be 

accepted.  Since  no  new  arguments  in  support  of  this  claim  have  been  put  forward 

by the company, the rejection  of this claim is confirmed  by the Council. 

(28)  Two  Japanese  producers  reiterated  their  claim  that  an  adjustment  should  be  made 

for print film  making and artwork. 

The  claim  was  based  on  the  fact  that  for  sales  to  the  Community,  generally,  the 

print  film  was  supplied  by the customer  while  for  sales on  the Japanese  market,  in 

general, it was the producer who supplied the artwork and the film  making. 

One Japanese producer  also further  claimed  that  an adjustment  should  be  made  for 

« 

those domestic  orders  for  which  a particular  type of paper,  called  'Japanese  paper' 

was  used, because  this type of  finishing  of the product  was  not  offered  for  sales  to 

the Community. 

Both  claims  were  rejected  at  the  stage  of  the  provisional  duty  Regulation  as  the 

company  concerned  was  not  in  a  position  to  quantify  the  market  value  of  the 

adjustment  claimed to the satisfaction  of the Commission. 

After  disclosure  of  the  essential  facts  leading  to  the  imposition  of  provisional 

measures 

the 

Japanese  producers 

submitted 

additional 

information 

and 

explanations  on the basis of which it was possible  to determine the  market  value of 

the  adjustments  claimed.  One  of  the  Japanese  producers  was  not  in  a  position  to 

demonstrate  the  market  value  of  the  adjustment  claimed.  As  the  claim  itself  was 

considered to be justified  the adjustment  for this producer was made  by reference  to 

another producer in Japan. 

Consequently  the claim was granted to the extent that it was justified. 

(29)  One  Japanese  producer  maintained  its  request,  already  made  at  the  provisional 

stage, that an adjustment  should be made for the differences  in time of delivery. 

This  request  was  based  on  the  grounds  that  the  domestic  delivery  delay  is. 

generally,  much  shorter than  the one for  export  transactions  and  that  the  customers 

in the Community  are charged lower prices because of the longer delay  in delivery. 

In this respect the company concerned did not substantiate its claim, in particular by 

showing  that  customers  consistently  pay  different  prices  on  the  domestic-  and/or 

export markets because of the different  delivery delays. 

Therefore  the request has to be  rejected. 

4.  Dumping margins 

(30)  The  complainant  argued  that  as  the  export  prices  of  the  Japanese  producers  are, 

generally,  at  the  same  level  and  as the Japanese  domestic  market  is  homogeneous 

the  individual  dumping  margins  found  should  not  have  such  a  wide  spread.  The 

complainant asked the Commission  to review  the dumping  findings,  particularly  as 

far as Kobe and Yaka are concerned. 

It  has  to  be  recalled  that  the  dumping  margin  is  determined  individually  for  each 

exporter  by  comparing  its  normal  value  with  its  exports  price  as  explained  in 

recitals (10) to (24) of the provisional duty Regulation. 

In  this  respect,  the  Commission  can  confirm  that  the  export  prices  charged  by  the 

Japanese exporters  for  comparable  product  types are, generally,  for  all  exporters  at 

a  similar  level.  The  investigation  revealed  however  that  the  domestic  prices  of 

different  Japanese  producers  vary  significantly,  thus  constituting  the  principal 

reason for the variance in dumping margins established. 

The  complainant  further  argued,  in  this  context,  that  the  sales  channels  of  the 

Japanese  producers  on  their  domestic  market  are  similar.  The  verification  of  the 

information  submitted by the Japanese producers does not confirm  this  argument. 

Other  arguments  made  by  the  complainant  on  the  provisional  findings  concerning 

the  margins  of  dumping  related  to  the  cost  structure,  age  of  the  workers,  low 

productivity,  the  fact  that  no  manufacturer  is  left  in Japan  for  match  machines  and 

the utilisation of old and insufficient  machinery. 

Consequently,  as  the  evidence  provided  by  the  complainant  in  support  of  its 

arguments  is  either  merely  circumstantial  or  not  confirmed  by  the  findings  made 

during the investigation  it is concluded that the arguments have to be  rejected. 

(31)  After  having  considered  the  arguments  raised  by  the  parties  and  after  having 

modified,  when  appropriate,  the  provisional  findings,  the  definitive  dumping 

margins  for  the co-operating  producers/exporters,  expressed  as  a percentage  of  the 

free-àt-Community  frontier  price are as follows: 

Daiwa Trading & Industrial Co. Ltd. 

Harima Match Company Co. Ltd. 

31.8% 

63.5% 

Kobe Match Co. Ltd. 

Yaka Chemical Industry Co. Ltd. 

9.8% 

23.3% 

(32)  The  approach  followed  in  recital  (24)  of  the  provisional  duty  Regulation  for  the 

assessment  of  the  dumping  margin  applicable  to  non-co-operating  companies  in 

Japan  which  is  based  on  facts  available  and  verified  during  the  investigation  is 

confirmed  by the Council.  On  that basis, it is considered  that  the  highest  dumping 

margin found,  i.e. 63.5% with regard  to a producer in Japan  which had  co-operated 

in the investigation, should also apply to non-co-operating producers in Japan. 

E.  COMMUNITY  INDUSTRY 

(33)  The  large  majority  of  the  Community  producers  of  advertising  matches  are 

members  of  FEFA  (Federation  Européenne  des  Fabricants  d'allumettes),  the 

European  association  who  lodged  the  complaint  on  behalf  of  its  members.  These 

producers, located  in France, Spain, Italy, Belgium, Portugal  and  United  Kingdom, 

are  usually  small  and  medium  size  enterprises  with 

limited 

resources. 

Consequently,  even  though  they  all  supported  the  complaint,  only  the  main 

producers,  representing  78%  of  the  total  Community  output  of  the  product 

concerned  and thus, clearly meeting the criteria set forth  in Article 4(5) of the Basic-

Regulation, have actively co-operated with the Commission in this investigation. 

(34)  A  Japanese  exporter  questioned  the  exclusion  from  the  published  provisional 

determinations  of  a  Community  producer  located  in  France,  who  replied  to  the 

Commission  questionnaire. 

(35)  This  situation  is  explained  by  the  fact  that  this  producer,  although  supporting  the 

complaint,  was  not  in  a  position  to  comply  with  the  requirements  of  the 

Commission  for  the on-the-spot  investigation  due to important  internal  difficulties. 

Therefore  it was decided  that  this producer could  not be considered  as  actively  co 

operating  in  the  proceeding  and  was  not  included  in  the  definition  of  the 

Community  industry. 

(36)  This  decision  is  reflected  in  the  contents  of  recital  (25)  of  the  provisional  duty 

Regulation  which  indicates  that  the  term 

'Community 

industry'  should  be 

interpreted  as  referring  to  those  Community  producers  of  the  like  product  whose 

10 

collective output constitutes a major  proportion  of the total Community  production, 

who supported the complaint and who actively co-operated  in the proceeding. 

(37)  Despite the explanation provided  in recital  (26) of the provisional  duty  Regulation, 

one  importer  of  Japanese  advertising  matches  in  the  Community  claimed  that  the 

main  complainant  Community  producer  should  not  be  considered  as  part  of  the 

Community  industry  on  the  grounds  that  he  imported  directly  or  via  its  related 

companies  dumped  advertising  matches  from  Japan  in  volumes  representing  far 

more than 4% of its own production. In support of its claim a list of the  subsidiaries 

of  the  above  complainant  which  allegedly  imported  the  advertising  matches  from 

Japan was supplied. 

(38)  The  Commission  re-examined  the  level  of  imports  made  by  this  Community 

producer and confirmed  its provisional  finding,  namely that the quantities  imported 

by  this  producer  represented  around  4% of  its  own  total  production  of  advertising 

matches. 

(39).  Another  exporter  claimed  that  two of the complaining  Community  producers  were 

no  longer  producing  advertising  matches. Even  though  this exporter  is  referring  to 

events  which  allegedly  happened  after  the  investigation  period,  which  therefore 

should  normally  not  be  taken  into  account,  it  has  to  be  noted  that  no  indication 

exists 

that  any  of  the  complaining  Community  producers  stopped  manufacturing 

the product covered by this investigation. 

(40)  In  conclusion,  the  definition  of  the  Community  industry  for  the  purposes  of  the 

present  proceeding  and  the  provisional  findings  made  by  the  Commission  in  this 

respect are hereby  confirmed. 

F.  INJURY 

1.  Injury examination period and injury  factors 

(41)  Some  exporters  argued  that  the  Commission  had  not  been  consistent  as  far  as  the 

investigation  period for the assessment of injury  is concerned. 

(42)  The  period  covered  by the  injury  examination  is  the  whole  period  from  I  January 

1990 to 30 June  1994 as mentioned in recital (7) of the provisional  duty  Regulation. 

The  'investigation  period'  for  dumping  analysis  covered  a one  year  period  from  I 

11 

July  1993 to 30 June  1994.  The main injury  indicators were assessed  for  the  whole 

injury  examination  period. However, when the information  submitted  was  not  fully 

substantiated  or  not  reliable  and  consequently  could  not  guarantee  an  accurate 

analysis  of  a  certain  injury  factor  within  the  injury  examination  period,  the 

Commission  considered  it  appropriate  to  disregard  the  information  and  based  its 

conclusion on the available, substantiated  information. 

(43)  As  requested  by  some  exporters  the  Commission  has  further  verified 

the 

information  available  in order to complete its analysis  of certain  injury  factors,  the 

results of which are given below : 

(a)  Prices 

(44)  With  reference  to recital  (45)  of the provisional  duty  Regulation,  80% of  the  sales 

of  book  and  box  matches  taken  together  made  by  the  Community  industry  in  the 

Community  market  were  taken  into  account  in  the  price  development  exercise.  It 

was found  that  from  1990 up to the investigation  period  sale  prices  charged  by  the 

Community  industry increased on average by 4%. 

(45)  A  further  analysis  has  been  carried  out  separately  for  book  and  box  matches,  the 

latter  representing  around  60%  of  the  total  Community  industry  sales  of  matches 

and around  80% of Japanese exporters'  total  sales in the Community.  On  that  new 

basis  it was  found  that  from  1990 up to the  investigation  period  the  sales  prices  of 

box  matches  charged  by  the  Community  industry  decreased  by  2%  whereas  the 

sales prices of book matches of this industry,  representing  the minority  of  Japanese 

sales in the Community, had increased by  10% during the same period. 

(b)  Production capacity and capacity  utilisation 

(46)  As  requested  by  one  Japanese  exporter,  the  Commission,  notwithstanding  the 

difficulties  described  in  recital  (44)  of  the  provisional  duty  Regulation,  made  the 

best  possible  estimate  of  the  production  capacity  of  advertising  matches  and 

relative  capacity  utilisation  of  the  Community  industry.  It  appears  that  on  average 

the  Community  industry  worked  222  days  per  year  and  2  shifts  per  day.  On  this 

basis  whilst  a  reasonable  average  capacity  utilisation  ratio  would  be  around  75%; 

for  the  type  of  business  involved, 

the  estimated  capacity  utilisation  of  the 

12 

Community  industry from  1990 up to the investigation  period  was consistently  low 

at around 56%, with a peak of 59% in  1991. 

(c)  Cash flow 

(47)  In  addition  to the provisional  findings  stated  in recital  (51) of  the  provisional  duty 

Regulation,  the  operating  cash  flow  of  the  Community  industry  established  at 

company-wide  level  for  the advertising division  whose  main  activity  is  advertising 

matches,  that  is  the  product  concerned,  decreased  by  7%  from  1990  up  to  the 

investigation  period. 

(d)  Profitability 

(48)  For  1990, the first  year of the injury period under examination, it was found  that the 

sales of the product concerned by the Community industry were still profitable  with 

a rate of return on turn-over of around 2.5 %. 

2.  Segmentation of the market 

(49)  Following  the publication  of the provisional  duty Regulation,  interested  parties did 

not  object  to  the  provisional  finding  set  out  in  recital  (36)  of  the  provisional  duty 

Regulation,  namely  that  advertising  matches  were  sold  in  the  Community  to 

separate  categories  of  customers  depending  on  the  size  of  their  orders.  In  fact  it 

should be pointed  out that the Japanese market  had  also  been  similarly  categorised 

for 

the  establishment  of  dumping. 

The 

investigation  revealed 

that  such 

categorisation  is a crucial issue given its impact on prices and costs. 

(50)  One  Japanese  exporter  noted  that  the  Community  industry  had  requested  the 

exclusion  from  the determination  of injury  of  one customer  on  account  of  the  very 

high  volume  of  purchases,  which  rendered  it  not  directly  comparable  within  the 

other  customer  categories.  The  Commission  established  that  the  customer 

concerned  was  notable  for  the  volume  of  its  purchases.  However, 

these 

characteristics  did  not  constitute  a sufficient  ground  to  exclude  it  from  the overall 

injury  assessment. 

13 

3.  Cost allocation method 

(51)  Some  exporters  questioned  the  cost  allocation  method  applied  by  the  Community 

industry  and  provisionally  accepted  by  the  Commission.  They  argued  that  the 

selling,  general  and  administrative  (SG&A)  expenses  which  the  Community 

industry  allocated  either  according  to  the  number  of  orders  or  according  to'the 

number of matchboxes should instead be allocated on a turnover basis. 

(52)  Article  2  (11)  of  the  Basic  Regulation  specifies  for  the  examination  of  dumping 

that,  in  general,  all  cost  allocations  shall  be  based  on  available  accounting  data, 

normally  allocated,  where necessary, in proportion  to the turnover  for  each  product 

and  market  under  consideration.  An  analogue  approach  seems  appropriate  in  this 

case. 

This approach  implies that  the appropriateness of the cost allocation  method  has to 

be examined  and  appreciated  on  the basis of the consistency  in  its  utilisation:  and, 

that only in the absence of an appropriate method,  the allocation  of costs  should  be 

made on the basis of turnover. 

(53)  After  publication  of the provisional  duty Regulation,  the Commission  continued  to 

seek the information  it deemed necessary. In the light of the submissions received  it 

was decided  to conduct  a very detailed  on-the-spot  investigation  at the  premises of 

the main Community producer which was part of the Community industry,  to  verify 

yet again its cost allocation  method. 

This verification  confirmed  that the allocation  method  accepted  by the  Commission 

at  the  provisional  stage  of  the  investigation  was  consistently  applied  by  the 

producer  concerned  and  reasonably  reflected 

the  costs  associated  with 

the 

production  and  the  sale  of  the  product  under  consideration.  Accordingly,  the 

contents  of  recitals  (49)  to  (50)  of  the  provisional  duty  Regulation  are  hereby 

confirmed. 

4.  Undercutting and underselling 

(54)  Some  Japanese  exporters  claimed  for  price  comparison  an  allowance  for  the 

difference  in  delivery  time  on  the  grounds  that,  particularly  for  the  small  size 

orders, delivery time affected  consumer choice and thus price comparability.  These 

14 

exporters  explained  that  longer  delivery  periods  were  the  result  of  the  fact  that 

matches  from  Japan  are  usually  shipped  via  ocean  freight  to  the  Community,  thus 

significantly  decreasing the cost of transport and lowering prices to clients, who are 

willing  to wait  several  months  for  their  orders. The  Community  industry  delivery 

time, being much shorter, Japanese exporters  have no choice  but to lower  prices  to 

compensate for the longer delivery terms. 

These Japanese  exporters  consider  that longer  delivery  time justified  a price  lower 

than  that charged by the Community industry  and estimate the amount  of  this  price 

difference  at around  5%, in line with  the average  undercutting  found  to exist.  For 

the reasons given'in recital (29) this claim could not be accepted. 

(55)  One Japanese exporter questioned  its undercutting  and  underselling  margins  on  the 

grounds  that  they  were  calculated  on  the  basis  of  the  prices  of  certain  basic 

Community  industry  models  which  were not  identical  in  all  respects  to the  models 

exported  by  the  company  concerned  to  the  Community.  It  was  alleged  that  three 

basic  models  of  the  Community  industry  were  wood-stem  book  matches,  whereas 

the  corresponding  book  matches  exported  by  the  company  were  made  of  carton 

paper  (card-stem  book-matches).  The  former  material  being  more  expensive  than 

the  latter,  the  exporter  requested  an  adjustment  reflecting  the  market  value  of  the 

difference  in physical characteristics between the above-mentioned  models. 

(56)  In  the  absence  of  evidence  to  substantiate  the  exporter  's  claim,  the  Commission 

has  investigated  this  issue  on  the  basis  of  the  information  available  to  it. 

It 

appeared  that  sales  of  comparable  models  of  woodstem  and  carton  paper  book 

matches  were,  not  necessarily  made  at  different  prices.  As  an  example,  for  a 

particular model, although there were 20% more wooden  matches  in  this  model,  its 

sales  price  was  the  same  as  the  card-stem  model.  This  seems  to  indicate  that  any 

adjustment  to the Japanese prices should  be made downwards  rather  than  upwards. 

In  conclusion,  based  on  the  information  available  and,  as  the  exporter  concerned 

did  not  provide  any  evidence  to  substantiate  its  claim,  the  Commission  could  not 

take it into consideration. 

(57)  The  same  exporter  questioned  the  methodology  applied  by  the  Commission  in 

calculating  the  undercutting  and  underselling  amounts.  It  requested  that  the  same 

15 

methodology  applied  in  another  anti-dumping  proceeding  be  applied  to  calculate 

its margins. 

In the  anti-dumping  proceeding  referred  to by the exporter  an  average  sales  prices 

and an average  non-injurious  price for all the different  models of the product  under 

investigation  were  calculated,  whereas  in  the  present  proceeding  the  Commission 

compared prices on a model-per-model basis. 

(58)  In  cases  where  the product  concerned  is  not  sold  under  an  homogeneous  shape  or 

form  and there are no domestic  standard  models directly comparable  with  imported 

standard  models  of  the like product,  it  is  necessary  to  define  the  most  appropriate-

unit of measurement in order to allow prices to be compared. 

As  explained  in  recitals  (36)  to  (41)  of  the  provisional  duty  Regulation,  standard 

basic  models  of  advertising  matches  and  different  categories  of  customers  were 

found  to exist  in  the Community  market. They even  represented  the  large  majority 

of  the  trade  involved.  Sales  prices  of  the  different  standard  models  of  the  like 

product  sold by the Community  industry could therefore  be compared  with  those of 

the  Japanese  exporters  on  a  model-per-model  basis  separately  for  the  main 

categories of customers. 

As  the  method  followed  in  this  proceeding  is  the  most  accurate  to  determine  the 

undercutting  and  underselling  margins,  the  Council  endorses  the  Commission's 

rejection  of  the  request  made  by the exporter  concerned  to  calculate  their  margins 

on the basis of overall weighted average prices. 

5.  Injury suffered  by the Community  industry 

(59)  While  recognising  that  the  Community  industry  may  have  suffered  some  injury,  a 

number  of  Japanese  exporters  claimed  that  this  injury  could  not  be  qualified  as 

material. Firstly because only small and medium size orders, representing  a limited 

share  of  the  whole  advertising  matches  market,  were  affected  by  a  negative  return 

on sales. Secondly, because the Commission  claimed  material  injury  exclusively on 

the  basis  of  the  negative  trend  of  one  single  injury  factor,  namely  profitability. 

Thirdly, because several factors  were pointing to no injury  at all. 

16 

(60)  With reference  to  the  first  argument  raised  by  these  exporters,  small  and  medium 

size  orders  represent  a large  share  of  the  total  Community  market,  namely  around 

59%  in  terms  of  volume  but  around  67%  in  terms  of  value.  It  can  therefore  be 

concluded  that these  segments  are the main  sources  of revenue  for  the  Community 

industry.  Accordingly,  even  if  this  industry  was  still  performing  well  in  the  large 

order  segment,  its  ability  to  compete  in  this  segment  is  dependent  on  maintaining 

overall  financial  viability.  The  deteriorating  financial  situation  of  the  Community 

industry, which was found  to be  negative overall during the investigation  period, is 

therefore  a threat to the entire advertising matches sector in the Community. 

(61)  The  above  exporters  indicated  that  some  injury  factors  pointed  to  a  no  injury 

situation  but  did  not  specify  to  which  indicators  they  were  referring.  Furthermore 

the statement  that the Commission  based  its conclusion  on  a single  injury  factor  is 

not correct. 

During  the  whole  period  under  examination,  it  was  found  that  employment  in  the 

advertising  matches  sector decreased  by  13%, the  share  of  the  Community  market 

held  by  the  Community  industry  in  terms  of  value  decreased  by  about  10%, cash 

flow  decreased  by 7% and overall profitability  became negative after  having  shown 

profits  of 2.5% in  1990. 

Furthermore,  it  must  not  be  neglected  that  Community  industry  prices  were 

depressed  for  box  matches  which represent  60 % of total  sales  by this  industry  and 

that  the  slight  increase  in  overall  sales  prices  for  matches  of  4.3%  during  the 

investigation  period  could  not  even  cover  the  effects  of  inflation.  This  price 

suppression certainly played a significant  role in the deteriorating financial  situation 

of the Community  industry. 

(62)  These exporters  also supplied  annual accounts of the main complaining  Community 

producer  and calculated  a return  on  investment  of  28.65% for  this  producer  during 

the year  1995, that  is  after  the end of the investigation  period.  According  to  them, 

such a high return  should demonstrate that the financial  situation  of the Community 

producer concerned  is excellent. 

To  calculate  such  a return  on  investment,  these  exporters  applied  the  profit  of  the 

large  size orders, as stated  in recital  (50) of  the provisional  duty  Regulation,  to the 

17 

overall  turnover  as  reported  in  the  annual  accounts  they  supplied.  Then  they 

established  the ratio between  this extrapolated  profit  over the equity  as  reported  in 

the annual accounts. 

(63)  It  appears  that  these  exporters  have  confused  the  return  on  investment  with  the 

return on equity ratio. 

More  importantly,  the  annual  accounts  they  supplied  were  at  a consolidated  level, 

and  thus  included  a number  of  activities  not  covered  by  the  present  investigation. 

By  reference  to  the  turnover  as  reported  in  the  consolidated  annual  accounts  , the 

sales  value  of  the  large  orders  segment  only represents  0.4%.  Consequently,  such 

an  estimate  of  the  return  on  investment  must  be  disregarded  and  considered 

erroneous and misleading. 
xo-

6. Conclusion on injury 

(64)  On  the  basis  of  the  facts  and  considerations  developed  above  and  based  on  the 

deterioration  of several  injury  indicators  such as profitability,  market  share  in  value 

terms,  cash  flow  and  employment,  combined  with  low  capacity  utilisation  and  the 

effects  of  unsatisfactory  price  development,  the  Council  confirms 

that 

the 

Community  industry has suffered  material injury  in accordance  with  Article  4( I ) of. 

the Basic Regulation. 

G.  CAUSATION OF INJURY 

(65)  The  Commission  had  provisionally  examined  the  extent  to  which  the  material 

injury  suffered  by  the  Community  industry  was  caused  by  the  impact  of  dumped 

Japanese imports, and whether other factors  had caused or contributed  to that  injury 

in order to ensure that injury  caused  by these other factors  was  not  attributed  to the 

dumped  imports  concerned.  Such  other  factors  considered  were  the  evolution  of 

consumption,  competition  from  other  producers  in  the  Community,  other  imports, 

the  export  performance  of  the  Community  industry  and  the  behaviour  of  the  main 

economic operators during the period under investigation. 

(66)  In  spite  of  this  detailed  analysis  on  the  causation  of  injury,  several  exporters 

claimed  that  no  causal  relationship  was  established  between  the  alleged  dumped 

imports  and  the  material  injury  suffered  by  the  Community  industry.  They  staled 

that  Japanese  exporters  had  not  increased  the  volume  of  their  share  of  The 

Community  market  although 

their 

import  prices  had 

increased  by  40%. 

Furthermore  they could  not  understand  why in the large size orders  segment  where 

the highest  undercutting margin by Japanese exporters  was found,  no causal  effects 

seemed to exist. On the contrary  a profitable  situation had emerged. 

(67)  It  should  be  borne  in  mind  however,  as  mentioned  in  recitals  (58)  to  (62)  of  the 

provisional  duty  Regulation,  that  low-priced  dumped  Japanese  imports  increased 

their  Community  market  share  in  value  terms  by  24%  whereas  the  Community 

industry  lost  10%  of  this  share.  From  1990  up  to  the  investigation  period,  the 

Community  industry  prices  were  constantly  suppressed  and  despite  a  significant' 

price  increase  Japanese  products  still  undercut  the  former  prices  by  an  average 

margin  of 6,2%. Over the years, this situation  has caused  significant  difficulties  for 

the  Community 

industry  whose  profitability  became  negative  during 

the 

investigation  period. 

An  additional  link  between  the  negative  situation  of  the  Community  industry  and 

the  dumped  Japanese  imports  was  established  through  the  fact  that  the  return  on 

sales  of  the  Community  industry  was  found  to  be  significantly  worse  in  the  sales 

segments  where  Japanese  products  were  mainly  present,  that  is  in  the  small  and 

medium size order segments. 

(68)  The  Commission  has  further  analysed  separately  the  market  share  of  advertising 

matches  for  each  category  of  customer  depending  on  the  order  size 

in  terms  of 

volume  and  value  as  shown  in  the  table below.  This  table  was  established  for  the 

investigation  period on dumping (1 July 93 to 30 June 94) on the basis of more than 

80%  of  sales  made  by the Community  industry  and  around  80% of  Japanese  sales 

in the Community  market: 

Order 
size 

Japanese 
Exporters 

Community 
industry 

Total 
Market  share 

volume 

value 

volume 

value 

volume 

value 

Small 

Medium 

Large 

14% 

14% 

4% 

16.5% 

13% 

3% 

11% 

20% 

37% 

16.5% 

21% 

30% 

25% 

34% 

41% 

33% 

34% 

33% 

19 

(69)  This analysis shows that while the volume of the market  for  large orders  represents 

around  41%  of  the  total  advertising  matches  market,  the  share  held  by  the 

Community  industry  for  large orders  amounts  to nearly  ten  times  that  of  Japanese 

exporters.  The  limited  volume  sold  by  the  Japanese  exporters  in  this  segment 

explains why limited  effects  were found. * 

(70)  As  to  the  other  two  segments  of  the  markets,  they  represent  around  60%  of  the 

volume  and  around  67%  of  the  value  of  the  overall  market  share,  thus 

demonstrating that these are the key segments in the advertising matches business. 

(71)  It  follows  that  low-priced  dumped  Japanese  imports  are,  therefore,  targeting  these 

key segments of the Community  market, the volume of their  share of the  market  in 

these  segments  (47%)  being  comparable  with  that  of  the  Community  industry 

(53%). Consequently  the  large quantities  sold  by the Japanese  exporters  combined 

with  their  constant  price  pressure  since  1990  in  such  key  segments  of  the  market 

has clearly caused material injury  to the Community  industry. 

(72)  As  far  as price  development  is concerned; and  as  already  mentioned  in  chapter  VI 

(Injury)  above, sales  prices of boxes  and book  matches  of the  Community  industry 

developed  differently  from  1990  up  to  the  investigation  period.  Prices  of  box 

matches  decreased  by  2%  whereas  prices  of  book  matches  increased  by  10%-. 

Considering that box matches represent the large majority  of Japanese sales (around 

80%) during the above period, the link between  the negative  price  development  for 

the  box  matches  and  the  presence  in  the  Community  market  of  dumped  Japanese 

imports can clearly be established. 

(73)  In  conclusion,  based  on  the  findings  as  explained  and  developed  in  the  recitals 

above,  the  Council  confirms  that  low-priced  dumped  imports  from  Japan,  taken  in 

isolation, have caused material injury  to the Community  industry. 

H.  COMMUNITY  INTEREST 

(74)  In its  provisional  duty  Regulation  the  Commission  indicated  why  the  Community 

interest  calls  for  intervention.  In this  respect  it is recalled  that  the  other  producers 

in the Community  are small and  medium  size enterprises  representing  up to 22%- of 

the  total  Community  production  of  the  product  concerned.  The  fact  that  the  large 

majority  (90%)  of  these  producers  has consistently  supported  the  complaint  shows 

20 

that they are of the opinion  that it is in their interest  to restore  fair  trade practices in 

the Community  market with the imposition of anti-dumping  measures. 

(75)  As to the competition  law investigations  into the main Community  producer  in the 

Community  market,  the  Commission  is  aware  of  the  fact  that  a  complaint  was 

lodged  with  the  competent  services  of  the  Commission,  alleging  that  Swedish 

Match  abused  and  was  abusing  its  dominant  position  by  practising  a  policy  of 

acquisitions  and  of  predatory  pricing.'That  complaint  has  been  dismissed,  without 

objections  from  the  complainant,  because  no  evidence  was  found  or  had  been 

supplied of the existence of the alleged abuses. 

(76)  As to the allegation  according to which  the main  Community  producer  might  adopt 

or  has  already  adopted  a  long-term  strategy  of  selling  at  a  loss,  while  confirming 

what  it  stated  at  recital  (94)  of  the  provisional  duty  Regulation,  it  may  be  added 

that  the  allegations  forwarded  in this  respect  were based  on  a few  price  quotations 

referring  to  a  very  short  period  of  time  subsequent  to  the  investigation  period. 

These  allegations  cannot  be  taken  in  consideration  because  the  number  of 

quotations  is  very  limited  (three)  and  refers  to  a  period  of  time  subsequent  to  the 

investigation  period. 

(77)  In  summary,  the Council,  after  an appreciation  of all  the various  interests,  taken  as 

a  whole,  and  for  the  reasons  given  in  the  provisional  duty  Regulation  concludes 

that, on balance, it is in the Community  interest to impose definitive  measures. 

I.  ANTI-DUMPING  MEASURES 

(78)  Based  on  the  above  conclusions  on  dumping,  injury,  causal  link  and  Community 

interest,  it  was  considered  what  level  and  form  the  anti-dumping  measures  should 

take  in  order  to  remove  the  trade-distorting  effects  of  injurious  dumping  and  to 

restore effective  competitive conditions in the Community  market. 

(79)  After  the  publication  of  the  provisional  duty  Regulation  the  Commission  became 

aware that  the level of trade adjustment  made in establishing  the injury  elimination 

level,  had  been  applied  to  the  unrelated  importers'  resales  prices  whereas  such  an 

adjustment  should  be applied to Japanese exporters'  sales prices  in the  Community. 

Accordingly  the injury  margins have been  recalculated. 

21 

(80)  Since  the  injury  margin, that  is the level  of  prices  at  which  the  ir  rious  effects  of 

the dumped  imports would be removed, was lower than  the dumping  margin  found 

for three of the exporters concerned in the investigation, the injury  margin  was used 

in order to determine the level of the measures to be applied to these exporters. 

For  one  exporter  the  dumping  margin,  which  was  lower  than  the  injury  margin 

found,  was used in order to determine the level of the applicable  measures. 

(81)  On the  above basis, definitive  duties, in  the form  of  ad  valorem duties,  should  be 

imposed. 

(82)  The complainant  claimed  that, in order to avoid the possibility  of circumvention  of 

the  duties,  the  same  duty  should  be  imposed  on  all  the  co-operating  exporting 

producers.  This  claim  was  based  on  a  report  of  a  Japanese  economic  research 

institute  alleging  the  existence  of  a  close  co-operation  on  domestic  and  export 

prices of the Japanese industry. 

The  information  collected  by  the  Commission  and  verified  on  the  spot  did  not 

provide  any  evidence  whatsoever  of  a  common  price  strategy  by  the  Japanese 

industry,  at  least  as  far  as  domestic  prices,  and  therefore  the  normal  value,  are 

concerned  (see  recital  (22)  and  (23)  above).  Furthermore,  the  imposition  of  the 

same  duty  on  all  the  exporting  producers,  regardless  of  their  different  normal 

values, would constitute arbitrary treatment  that could not be justified  by the  mere. 

unsubstantiated  possibility of circumvention of the duties. 

This claim is therefore  rejected. 

J.  COLLECTION  OF THE PROVISIONAL  DUTIES 

(83)  In view of the magnitude of the dumping margins found  for the exporting  producers 

and  in  the  light  of the seriousness  of  the injury  caused  to the Community  industry, 

it  is  considered  necessary  that  the  amounts  secured  by  way  of  provisional  anti 

dumping duties should be definitively  collected  at the level of the definitive  duties. 

22 

HAS ADOPTED THIS REGULATION: 

Article 1 

1.  Definitive  anti-dumping  duties  are  hereby  imposed  on  imports  of  advertising 

matches  originating  in  Japan.  The  product  as  described  falls  within  CN  codes 

Ex 3605 00 00 (Taric code 3605000010). 

For the purposes  of this Regulation, advertising  matches  are matches  incorporating 

advertising  matter  other  than  or  in  addition  to  the  logo  or  details  of  the  match 

manufacturer. 

2. 

For  the  purpose  of  this  Regulation,  the  rate  of  duty  applicable  to  the  net  free-at-

Community-frontier  price before duty shall be 43.2% (Taric additional  code  , 8900) 

with  the  exception  of  imports  manufactured  and  exported  by  the  following 

companies, which shall be subject to the following  rate of duty : 

(a) 

27.8% for the products manufactured  and exported by Daiwa Trading & 

Industrial  Match Co. Ltd (Taric additional code 8022) 

(b) 

9.8% for the products manufactured  and exported by Kobe Match Co. 

Ltd (Taric additional code 8023) 

(c) 

10.3% for the products manufactured  and exported by Yaka Chemical 

Industrial Co. Ltd (Taric additional code 8024) 

3.  Unless  otherwise  specified,  the provisions  in force  concerning  customs  duties  shall 

apply. 

Article 2 

The  amount  secured  by  way  of  provisional  anti-dumping  duty  under  Regulation 

(EC)  No.  1092/97  shall  be  definitively  collected  at  the  duty  rate  definitively 

imposed. 

Amounts secured in  excess of the definitive  rate of  anti-dumping  shall be released. 

23 

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 

24 

ISSN 0254-1475 

COM(97) 487  final 

DOCUMENTS 

EN 

02 

il 

Catalogue number  :  CB-C0-97-496-EN-C 

ISBN  92-78-25074-0 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

2S