Proposal for a Council Regulation (EC) amending Regulation (EC) No 3359/93 as far as anti-dumping measures on certain imports of ferro-silicon originating in Brazil are concerned
Date: 1998-01-23
Institutions: European Commission
Subjects: Brazil, anti-dumping legislation, ferro-alloy, import

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  23.01.1998 
COM(1998) 27 final 

98/ 0019 (ACQ 

Proposal  for a 

COUNCIL REGULATION (EC) 

amending  Regulation  (EC) No 3359/93  as far as anti-dumping  measures  on  certain 

imports of ferro-silicon  originating in Brazil are concerned 

(presented  by the  Commission) 

EXPLANATORY MEMORANDUM 

In September  1996, the Commission,  after  consultation  within the Advisory  Committee, 

initiated an interim review concerning the anti-dumping  measures currently  applicable to 

imports of  ferrosilicon  made  by  one  Brazilian  exporter.  The review  had  been  requested 

by the exporter and is limited to the aspects of dumping. 

In  October  1996  a  second  Brazilian  exporter  was  included  in  the  scope  of  the  interim 

review, following  a corresponding request of the exporter concerned. 

The investigation  carried  out  in the  framework  of the interim  review  has led  to a  finding 

of  no  dumping  and  a  cic  minimis dumping  margin,  respectively,  for  the  two  exporters 

concerned. 

Therefore,  it is proposed  to repeal the anti-dumping  measures cun'ently  applicable  to the 

two Brazilian exporters concerned. 

The  repeal  should  be  made  through  the  attached  Council  Regulation  which  amends  the 

Council  Regulation  introducing  the  measures  in  force,  i.e.  Council  Regulation  (EC) No 

3359/93, published  on 9 December  1993 and  imposing  amended  anti-dumping  measures 

on  certain  imports  of  ferro-silicon  originating  in  Russia,  Kazakhstan,  Ukraine,  Iceland, 

Norwav. Sweden, Venezuela and lirazil. 

Council  Regulation (IT)  No 

/97 

of.... 

amending  Regulation (EC) No 3359/93  as far as anti-dumping measures on certain 

imports of ferro-silicon originating in Brazil are concerned 

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  dumpetl  imports  from countries not members of  the European 
Community1,  as  amended  by  Regulation  (EC)  No  2331/96%  and  in  particular 

Article  11(3) thereof. 

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

Advisory Committee, 

Whereas: 

1  OJNoL56,  6.3.1996, p.1. 

2  OJNoL317,6.  12. 1996, p. 1. 

A.  PROCEDURE 

1. Previous investigations 

(1)  Anti-dumping  measures  on  imports  of  ferro-silicon  originating  in  Brazil  have  been 

in  force  since  19X7  when  definitive  anli-dumping  duties  were  imposed  on  these 

imports  by  Regulation  (EEC)  No  3650/87-*,  with  the  exception  of  imports  from 

certain  exporters  for  which  either  no  dumping  was  found  or  undertakings  had  been 

accepted  by  the Commission^. 

(2)  Subsequently,  in  May  1990^  and  in  May  1992",  two  interim  reviews  of  the 

measures  covering  dumping  and  injury  were  initiated  at the  Commission's  initiative 

and  at  the  request  of  the  Community  industry  respectively.  As  a  result  of  the  most 

recent  of  these  reviews  the  definitive  anti-dumping  duty  which  is the  subject  of  the 

present 

investigation  was  imposed 

in  1993  by  Council  Regulation  (EC)  No 

3359/937. 

3  OJ No L 343, 5.12.1987, p. 1 

4  OJ NoL 219, 8.8.1987, p. 24 

5  OJ No C 109, 3.5.1990, p.5 

6  OJ No C 115, 6.5.1992, p.2 

7  OJ No L 302, 9.12.1993,  p.  1. Regulation  amended  by Council  Regulation  (EC)  No 2238/94 
(OJ  No  L 240,  15.9.1994,  p.  28)  and  Council  Regulation  (EC)  No.  1171/95  (OJ  No  L 118, 
25.5.95, p.7) 

2. Present investigation 

(3)  On  4  July  1996  the  Brazilian  exporter  Companhia  Brasileira  Carbureto  de  Calcio 

lodged a request  for an  interim  review of the anti-dumping  measures applicable to it 

limited  to the aspects of dumping, pursuant  to Article  11 (3) of Council  Regulation 

(EC)  No  384/96  (hereinafter  referred  to  as  the  Basic  Regulation).  The  request 

alleged that the continued  imposition of the anti-dumping duties on its exports to the 

Community  was no longer necessary to offset  dumping since its export prices were 

substantially  higher  than  those  established  in  the  investigation  leading  to  the 

existing measures. 

Having  determined,  after  consultating  the  Advisory  Committee,  that  sufficient 

evidence existed  for the initiation of an interim review, the Commission  published a 

notice of initiation^ and commenced an investigation. 

(4)  following  the initiation  of the review, the Commission  received  on 7 October  1996 

a request  from  another exporter  in Brazil, Cia. de Ferro Ligas da Bahia-Ferbasa,  for 

its  inclusion  in  the  scope  of  the  interim  review.  This  company  alleged  that  the 

continued  imposition  of  the  anti-dumping  measures  was  no  longer  necessary  to 

offset  dumping since its present export prices increased to a level far higher than its 

normal value during the period between June 1995 to June 1996. 

8  OJ NoC 85, 28.9.1996, p. 15 

Based  on  the  evidence  provided  by  the  company,  die  Commission  decided,  after 

coiisiillalinj',  the  Advisory  Commillee,  to  accept  ils  request  and  lo  include  it  in  the 

scope  of  the  interim  review. 

(5)  The  Commission  officially  advised  the  representatives  of  the  exporting  country  of 

the  initiation  of  the  interim  review  and  gave  all  parties  directly  concerned  the 

opportunity  to make their  views known  in writing  and to request  a hearing. 

(6)  The Commission  sent questionnaires  and received  detailed  information  from  the  two 

Brazilian  exporters  concerned. 

(7)  The  Commission  sought  and  verified  all  information  it  deemed  necessary  for  the 

purpose  of a determination  of dumping  and  carried  out  investigations  at  the  premises 

of the  two  following  Brazilian  exporters: 

( 'in. Brasileira  ( 'arhurclo  de  ( 'alcio, Sanlos  Dumonl (Minas  durais) 

Cia. de Ferro  Ligas  da  Bahia(Ferbasa),  Pojuca  (Bahia) 

(8)  The  investigation  of  dumping  covered  the  period  from  1  September  1995  to  31 

August  1996 ("the  investigation  period"). 

B.  PRODUCT  UNDER  CONSIDERA  TION AND  LIKE  PRODUCT 

1. Product  description 

(9)  The  product  under consideration  is  the  same  as  in  the  regulation  subject  to  review, 

i.e.  ferro-silicon  containing  between 20% and 96% of silicon  by weight. The product 

is  used  as  a deoxidizer  in  steel  manufacture  and as an alloying  component  for  high 

temperature steel  alloys and sheet metal. 

2.  Like  product 

(10)  It was  established  that  the  ferro-silicon  sold  on  the  Brazilian  market  and  the  ferro 

silicon  exported  from  Brazil  to  the  Community  by  the  two  companies  concerned 

was  identical  or  closely  resembling  in  terms  of  physical  characteristics  and  end 

uses.  Therefore,  all  these  products  were  considered  a  like  product  in  accordance 

with Article  1(4) of the  Basic  Regulation. 

'%•?• 

C. NORMAL  VALUE  AND  EXPORT  PRICE 

(11)  In  accordance  with  Article  2(2)  of  the  Basic  Regulation,  normal  value  was 

established  on  the  basis  of  sales  prices  ol" ferro  silicon  on  the  Brazilian  domestic 

market  since  the  domestic  sales  by  each  of  the  two  Brazilian  exporters  concerned 

exceeded  5% of  their respective export  sales  to the Community,  For one exporter all 

its domestic  sales  were  used  in the calculation  of  normal  value  since  all  these  sales 

were  found  to  be  profitable.  For  the  other  exporter  only  the  profitable  sales  were 

used  in  establishing  normal  value  since  the  number  of  domestic  sales  below  unit 

costs  constituted  more  than  20%  of  the  total  domestic  sales,  in  accordance  with 

Article  2  (4)  of  the  Basic  Regulation.  The  profitable  sales  of  this  second  exporter 

represented more than  10% of  its total domestic sales. 

(12)  Export  price  was  established  by  reference  to  the  prices  actually  paid  for  the  ferro-

silicon  sold  for export  to  independent  buyers  in the Community,  in accordance  with 

Article 2 (8) of the Basic  Regulation. 

I). COMPARISON 

(13)  The weighted  average  normal  value  was compared  to the  weighted  average  export 

price of all export  transactions  to the Community, in accordance with  Article  2(11) 

of the Basic Regulation. The comparison  was made on an ex-factory  basis and at the 

same  level  of  trade.  For  the  purpose  of  ensuring  a  fair  comparison,  account  was 

taken,  in  accordance  with  Article  2 (10) of  the Basic  Regulation,  of  differences  in 

factors  which  were  claimed  and  demonstrated 

to  affect  prices  and  price 

comparability, i.e. transport, handling, indirect taxes and credit expenses. 

E. DUMPING MARGINS 

(14) The  comparison  as  described  above  showed  no  dumping  for  Cia.  Brasileira 

Carbureto de Calcio and a - de minimis - dumping margin of 0,4%  for Cia. dc Ferro 

Ligas da Bahia (Ferbasa). 

/'.  REPEAL  OF  MEASURES 

( 15) In view of  the findings  of no dumping and respectively  a de minimis dumping  margin 

for the two  Brazilian exporters concerned  and as this situation  is not considered  to be 

of  a short-term  nature, measures  imposed  by Regulation  (EC)  No 3359/93  on exports 

of these companies  should be repealed by amending that Regulation  accordingly. 

(16) The Commission  informed  the two Brazilian  exporters  and the liaison  committee  of 

the  European  ferro-alloy  industry  (Euro Alliages)  of  the  facts  and considerations  on 

the  basis  of  which  it  was  intended  to  propose  the  repeal  of  the  measures.  No 

comments  were received. 

HAS ADOPTED  TIMS REGULATION: 

Article  1 

In Article  I (2) of Council  Regulation (EC) No 3359/93 the figures of 9,2% and 22,8% 

given as the rales of duly applicable to the Brazilian companies Cia  Brasileira  Carbureto 

de ( aleio, Rio tie Janeiro, and  Cia de Ferro Ligas da Bahia (Ferbasa). Pojuea. Bahia, 

respectively, shall be replaced  by the figure "(),()%" (additional  Tarie codes: Cia. 

Brasileira Carbureto de Câlcio: 8729; Cia de Ferro Ligas da Bahia, Ferbasa: 8730) 

Article 2 

This Regulation shall enter into force on the day following  its publication  in the Official 

Journal of the European ( 'ommunities. 

I'his Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

1997 

10 

ISSN 0254-1475 

COM(98) 27 final 

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