Council Regulation (EC) No 351/98 of 12 February 1998 amending Regulation (EC) No 3359/93 as far as anti- dumping measures on certain imports of ferro-silicon originating in Brazil are concerned
Date: 1998-02-12
Institutions: Council of the European Union
Subjects: Brazil, anti-dumping duty, anti-dumping legislation, ferrous metal, import

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 351/98

of 12 February 1998

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,

2. Present investigation

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
Community (1), and in particular Article 11(3) thereof,

Having regard to the proposal submitted by the Commis-
sion after consulting the Advisory Committee,

Whereas:

(1)

(2)

A. PROCEDURE

1. Previous investigations

Anti-dumping measures on imports of ferro-silicon
originating in Brazil have been in force since 1987
when definitive anti-dumping duties were imposed
on these imports by Regulation (EEC) No 3650/
87 (2), with the exception of imports from certain
exporters for which either no dumping was found
or undertakings had been accepted by
the
Commission (3).

initiative

Subsequently, in May 1990 (4) and in May 1992 (5),
two interim reviews of
the measures covering
dumping and injury were initiated at the Commis-
sions’s
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 3359/93 (6).

request of

and at

the

(3)

(4)

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 consulting the Advisory
Committee, that sufficient evidence existed for the
initiation of an interim review, the Commission
published a notice of initiation (7) and commenced
an investigation.

the

the

review,

the
initiation of
Following
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. That company alleged that the
continued imposition of the anti-dumping meas-
ures was no longer necessary to offset dumping
since its present export prices had increased to a
level far higher than its normal value during the
period between June 1995 to June 1996.

(1) OJ L 56, 6. 3. 1996, p. 1. Regulation as amended by Regula-

tion (EC) No 2331/96 (OJ L 317, 6. 12. 1996, p. 1).

(2) OJ L 343, 5. 12. 1987, p. 1.
(3) OJ L 219, 8. 8. 1987, p. 24.
(4) OJ C 109, 3. 5. 1990, p. 5.
(5) OJ C 115, 6. 5. 1992, p. 2.
(6) OJ L 302, 9. 12. 1993, p. 1. Regulation as last amended by
Regulation (EC) No 1171/95 (OJ L 118, 25. 5. 1995, p. 7).

Based on the evidence provided by that company,
the Commission decided, after consulting the
Advisory Committee, to accept its request and to
include it in the scope of the interim review.

(7) OJ C 285, 28. 9. 1996, p. 15.

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14. 2. 98

(5)

(6)

(7)

The Commission officially advised the represent-
atives 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.

The Commission sent questionnaires and received
detailed information from the two Brazilian ex-
porters concerned.

The Commission sought and verified all informa-
tion it deemed necessary for the purpose of a
determination of dumping and carried out invest-
the two following
igations at
Brazilian exporters:

the premises of

Cia. Brasileira Carbureto de C(cid:145)lcio, Santos Dumont
(Minas Gerais),

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

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 product costs constituted
more than 20 % of the total domestic sales,
in
accordance with Article 2(4) of the Basic Regula-
tion. 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 Regu-
lation.

D. COMPARISON

(8)

The investigation of dumping covered the period
from 1 September 1995 to 31 August 1996 (‘the
investigation period').

(13)

(9)

(10)

(11)

B. PRODUCT UNDER CONSIDERATION AND

LIKE PRODUCT

1. Product description

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 deoxidiser in steel
manufacture and as an alloying component
for
high temperature steel alloys and sheet metal.

2. Like product

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 com-
panies concerned was identical or closely resem-
bling 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

In accordance with Article 2(2) of the Basic Regu-
lation, normal value was established on the basis of
ferro-silicon on the Brazilian
sales prices of
domestic market since the domestic sales by each
of the two Brazilian exporters concerned exceeded
5 % of
to the
respective export
Community. For one exporter all its domestic sales

their

sales

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 compar-
ison 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 differ-
ences in factors which were claimed and demon-
strated to affect prices and price comparability, i.e.
transport, handling,
and credit
expenses.

indirect

taxes

E. DUMPING MARGINS

(14)

The comparison as described above showed no
dumping for Cia. Brasileira Carbureto de C(cid:145)lcio
and a de minimis dumping margin of 0,4 % for
Cia. de Ferro Ligas da Bahia (Ferbasa).

F. REPEAL OF MEASURES

(15)

(16)

In view of the findings of no dumping and respec-
tively 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.

The Commission informed the two Brazilian
exporters and the liaison committee of the Euro-
pean ferro-alloy industry (Euro Alliages) of
the
facts and considerations on the basis of which it
was intended to propose the repeal of the meas-
ures. No comments were received,

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HAS ADOPTED THIS REGULATION:

Article 1
In Article 1(2) of Regulation (EC) No 3359/93 the figures
of 9,2 % and 22,8 % given as the rates of duty applicable
to the Brazilian companies Cia. Brasileira Carbureto de
C(cid:145)lcio, Rio de Janeiro and Cia. de Ferro Ligas da Bahia
(Ferbasa), Pojuca, Bahia, respectively, shall be replaced by
the figure ‘0,0 %' (additional Taric codes: Cia. Brasileira

Carbureto de C(cid:145)lcio: 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 Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 12 February 1998.

For the Council

The President

J. BATTLE