Commission Regulation (EC) No 502/98 of 3 March 1998 imposing a provisional anti-dumping duty on imports of certain magnetic disks (3,5" microdisks) originating in Indonesia
Date: 1998-03-03
Institutions: European Commission
Subjects: Indonesia, anti-dumping duty, import, magnetic medium, originating product

L 63/4

EN

Official Journal of the European Communities

4. 3. 98

COMMISSION REGULATION (EC) No 502/98

of 3 March 1998

imposing a provisional anti-dumping duty on imports of certain magnetic disks
(3,5Z microdisks) originating in Indonesia

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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), as amended by Regulation (EC) No 2331/
96 (2), and in particular Articles 7 and 9 thereof,

After consulting the Advisory Committee,

Whereas:

producer and its related sales company in Thai-
land.

(5)

The Commission carried out verification visits at
the premises of the following companies:

(a) Complainant Community producers

Belgium:

Sentinel
Europe NV, Wellen;

Computer

Products

Germany: Boeder AG, Fl(cid:148)rsheim am Main;

France:

RPS Media SA (a subsidiary of
Boeder AG), Albi; Sentinel France,
Sentinel
SA (a
Computer Products Europe NV),
Paris;

subsidiary

of

(1)

(2)

(3)

(4)

A. PROCEDURE

On 6 April 1995, the Commission announced, by
a notice published in the Official Journal of the
European Communities (3) the initiation of an anti-
dumping proceeding with regard to imports into
the Community of certain magnetic disks (3,5Z
microdisks) originating in Canada,
Indonesia,
Macao and Thailand, and commenced an invest-
igation.

The proceeding was initiated as a result of a
complaint lodged by the Committee of European
Diskette Manufacturers
(Diskma) on behalf of
producers whose collective output of 3,5Z micro-
of
proportion
disks
Community production of these microdisks.

represented

a major

Italy:

Computer
Verderio Inferiore.

Support

Italy,

srl,

(b) Producers/exporters in the countries concerned

Indonesia:

(cid:190) PT Beneluxindo, Jakarta, and its related
companies Benelux Manufacturing
and
Prime Standard in Hong Kong.

Thailand:

(cid:190) V-SA Magnetic

Co.

Ltd,

Bangkok

(producer),

(cid:190) V-SA Cast Co. Ltd, Bangkok (related sales

company).

The complaint contained evidence of dumping of
the said product, and of material injury resulting
therefrom; this evidence was considered sufficient
to justify opening a proceeding.

The Commission officially advised the producers,
exporters and importers known to be concerned,
the representatives of the exporting countries, and
the complainant, and gave the parties concerned
the opportunity to make their views known in
writing and to request a hearing.

The Commission sent questionnaires to parties
known to be concerned and received detailed
information from the complainant Community
producers, one producer in Indonesia, and one

(6)

(7)

For the purposes of establishing dumping,
the
investigation covered the period 1 March 1994 to
28 February 1995 (hereinafter referred to as the
‘investigation period'). The examination of injury
covered the period between 1992 and the invest-
igation period.

It is recalled that defintive anti-dumping duties
have already been imposed on imports of 3,5Z
microdisks originating in Japan, Taiwan and the
People’s Republic of China by Council Regulation
(EEC) No 2681/93 (4),
in Hong Kong and the
Republic of Korea by Council Regulation (EC) No
2199/94 (5), and in Malaysia, Mexico and the USA
by Council Regulation (EC) No 663/96 (6).

(1) OJ L 56, 6. 3. 1996, p. 1.
(2) OJ L 317, 6. 12. 1996, p. 1.
(3) OJ C 84, 6. 4. 1995, p. 4.

(4) OJ L 262, 21. 10. 1993, p. 4.
(5) OJ L 236, 10. 9. 1994, p. 2.
(6) OJ L 92, 13. 4. 1996, p. 1.

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Official Journal of the European Communities

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(8)

Owing to the volume and complexity of the data
gathered and examined, and the parallel anti-
circumvention investigation (1) carried out pursuant
to Article 13 of Regulation (EC) No 384/96 (here-
inafter referred to as the ‘Basic Regulation'), the
duration of the investigation, which is not subject
to the time limits laid down in Article 6(9) of the
Basic Regulation, exceeded the period of one year.

2. Like product

(12)

The various types of microdisks classified under
CN code ex 8523 20 90 which are manufactured in
the Community or exported to the Community
from the countries in question use the same basic
technology and are alike in their essential physical
characteristics and end-uses. They have, therefore,
to be considered as a like product within the
meaning of Article 1(4) of the Basic Regulation.

B. PRODUCT UNDER CONSIDERATION AND

LIKE PRODUCT

C. DUMPING

1. Description of the product concerned

1. Canada, Macao and Thailand

(9)

for which the proceeding was
The products
initiated were 3,5Z microdisks, used to record and
store encoded digital computer information (CN
codes ex 8523 20 90 and ex 8524 90 91).

(10) With respect to 3,5Z microdisks falling within CN
code ex 8524 90 91 (since 1 January 1996, CN
code ex 8524 91 10) the investigation has shown
that although in technical terms they fall within
the description given in recital 9, these microdisks
contain data or instructions (other than sound or
a kind used in automatic data-
images) of
the facts
processing machines. On the basis of
currently available,
it was concluded that such
microdisks could not be viewed as one product
together with microdisks falling within CN code
ex 8523 20 90, which do not contain such data.
Since, moreover, no evidence of dumping of injury
was found concerning this product, the proceeding
in respect of the latter should be terminated, and
the findings will refer only to 3,5Z microdisks
falling within CN code ex 8523 20 90,
these
having been the subject of all prior proceedings.

(11)

available

concerned were

The microdisks
in
various types, depending on their storage capacity
and on the way in which they were marketed.
However, no significant differences existed in the
basic physical characteristics and technology of the
various types of microdisks, all of which, in addi-
tion, showed a high degree of interchangebility. In
these circumstances, and in line with the position
previously adopted by the Communtiy institutions,
all 3,5Z microdisks falling within CN code ex
8523 20 90 should be considered as one product
for the purposes of this proceeding.

(13)

The Commisson found it unnecessary to establish
whether imports of 3,5Z microdisks originating in
Canada, Macao and Thailand were dumped, since
the injury caused by these imports during the
investigation period was regarded as negligible.
Therefore the Commission has
terminated the
proceeding concerning imports originating in
these countries, by Decision 98/175/EC (2).

2. Indonesia

(a) Normal value

(14) One Indonesian producer, which accounted for
almost all recorded imports of the product in ques-
tion into the Community from Indonesia, cooper-
ated in the investigation. This producer obtained
all its raw materials from its parent company in
Hong Kong, while all its sales were handled by
subsidiaries, a trading
another of
company also based in Hong Kong. The Indone-
sian producer,
or
purchasing departments, only a production facility
and a shipping department.

therefore, had no

the parent’s

sales

(15)

The producer in question had no sales on the
Indonesian market. Since the Commission had no
in
information concerning any other producer
Indonesia selling in this market, the normal value
had to be constructed in accordance with Article
2(3) of the Basic Regulation, that is on the basis of
the cost of production in the country of origin plus
selling, general and
for
a reasonable amount
administrative expenses (hereinafter referred to as

(1) OJ L 186, 25. 7. 1996, p. 14.

(2) See page 32 of this Official Journal.

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Official Journal of the European Communities

4. 3. 98

‘SG&A expenses') and profit. Materials costs were
based on the actual costs incurred by the Hong
Kong parent. Other manufacturing costs were
based on the actual costs incurred by the Indone-
sian producer. SG&A expenses were calculated, in
accordance with Article 2(6)(c) of the Basic Regula-
tion, on the basis of the general and administrative
expenses incurred by the Indonesian producer,
plus the SG&A expenses of the Hong Kong parent
and its related trading subsidiary for the product in
question. As for a profit is concerned, it was judged
reasonable to use the profit reported in the Group’s
consolidated accounts, since the group is active in
the field of manufacturing and trading of magnetic
media products.

(18)

(19)

(b) Export price

through its related trading subsidiary,

(16) All sales were made at transfer prices to the Hong
Kong parent company, which in turn sold the
goods,
to
independent customers in the Community. There-
fore, it was found that the export price should be
established by reference to the prices actually paid
or payable to the related trading company in Hong
Kong.

(d) Dumping margin

The weighted average normal value was compared
with the weighted average export price. The provi-
sional dumping margin for
Indonesian
producer, expressed as a percentage of the total cif
Communty-frontier value of imports, was 41,1 %.

the

To cover the contingency that
there might be
another Indonesian producer/exporter, which had
failed to reply to the Commission’s questionnaire,
a residual dumping margin was determined on the
the facts available in accordance with
basis of
Article 18(1) of
the Basic Regulation. This was
done in order not to reward non-cooperation and
to avoid any opportunity for circumvention. When
the figures for exports to the Community provided
by the cooperating Indonesian producer were
compared with Community import statistics, it was
apparent
there was a very high degree of
cooperation. The Commission therefore considered
that the most reasonable facts available were those
established in the investigation and that, since
there was no reason to believe that any non-coop-
erating producer/exporter would have dumped at a
lower level than the level found for the cooperating
producer, the residual margin should be set at the
same level, that is 41,1 %.

that

(c) Comparison

D. COMMUNITY INDUSTRY

(17)

level,

factory

between

For the purposes of ensuring fair comparison, at
ex-Indonesian
the
constructed export price and the constructed
normal value, adjustments were made in respect of
freight and insurance, credit costs and commis-
sions in accordance with points (e), (g) and (i) of
Article 2(10) of the Basic Regulation. As stated at
recital 14, because of the relationship between the
Indonesian producer
related trading
subsidiary in Hong Kong, the prices charged by
the producing company to the related trading
subsidiary,
through its parent company, are not
reliable. To establish a reliable export price to the
Community from Indonesia,
the price charged
from Hong Kong to the Community was adjusted
to an ex-Indonesia level.

and the

(20)

Information was sought from all known producers
of the product concerned in the Community. The
Commission also took into consideration, as it had
done in the prior proceedings, the fact that some
of the producers in the Community were related to
producers in the countries concerned by those
prior proceedings, which were
found to be
dumping and thereby causing material injury.

(21) As

in the prior proceedings,

the Commission
found that the assessment of the effects of the
dumped imports originating in Indonesia would be
distorted if Community producers related to those
producers
involved in prior
proceedings found to be dumped the like product,
injury to the complainant,
and causing material
were not excluded from the definition of
the
‘Community industry'.

from countries

for SG&A expenses

As the related trader’s functions can be considered
similar to those of a trader acting on a commission
basis, an adjustment of 6 %, based on a reasonable
amount
and profit, was
deducted from the prices charged by the related
trading subsidiary to independent customers in the
Community. This figure was considered reasonable
given the degree of the related trader’s involvement
in the selling activities of the exporter.

(22) On the basis of the approach outlined above, the
share of the total Community production held by
the complainant producers during the investigation
period amounted to at least 85 %. Consequently,
the complainant
represented a major
proportion of total Community production of the
product concerned.

(Diskma)

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E. INJURY

3. Situation of the Community industry

(30)

(31)

Preliminary remark

(23)

It has to be noted that the Council has already
found that the Community industry was suffering
material injury from the effects of dumped imports
the People’s Republic of
from Japan, Taiwan,
the Republic of Korea,
China, Hong Kong,
Malaysia, Mexico and the USA. In the present
the Commission examined whether
proceeding,
the dumped imports of
the product concerned
from Indonesia also contributed to the material
injury to the Community industry.

(24)

The Commission’s
examination covered
existing Community of 15 Member States.

the

1. Community consumption, volume and market

share of the dumped imports

(25)

The Commission has relied on the methodology
adopted in the prior proceedings, with an adjust-
ment to take account of consumption in Austria,
Finland and Sweden during the period under
consideration.

(26) On this basis, Community consumption was 819
million units in 1992, 1 095 million units in 1993,
1 400 million units in 1994, and 1 413 million
units in the investigation period, that is an increase
of 73 % between 1992 and the investigation
period.

(27)

(28)

Imports from Indonesia went up from 0,19 million
units in 1992 to 91,5 million units during the
investigation period, an increase by a factor of 480
over the period. As imports from Indonesia grew,
their market
assessed in the light of
Community consumption, rose from 0,02 % in
1992, to 1,56 % in 1993, 6,04 % in 1994, and
6,48 % in the investigation period.

share,

2. Prices of the dumped imports

For the sole cooperating producer in Indonesia,
price undercutting was established by comparing
its sales prices to the first independent customer in
the Community, adjusted in respect of
import
duties paid and post-importation costs, with the
weighted
the
ex-factory
Community industry. The comparison was made
separately for each of the product types imported
(that is high-density bulk/packed, double-density
bulk).

average

prices

of

(29)

The comparison showed, on a weighted average
basis, a price undercutting margin of 26,1 % for
the cooperating producer.

(a) P r o d u c t i o n a n d

c a p a c i t y

u t i l i s a -

t i o n

volume of production of

The
the product
concerned by the Community industry increased
from 105 million units in 1992, to 175 million in
1993, 243 million in 1994 and 246 million in the
investigation period, an absolute increase of 134 %
over the period considered. Average capacity util-
isation rates were 80 % in 1992, 85 % in 1993,
94 % in 94, and 93 % in the investigation period,
close to the effective maximum.

(b) S a l e s

a n d m a r k e t

s h a r e

on

sales

industry’s

The Community
the
Community market grew from 97 million units in
1992, to 158 million in 1993, 219 million in 1994
and 232 million in the investigation period. In
terms of market share, this was 11,8 % in 1992,
14,4 % in 1993, 15,6 % in 1994, and 16,5 % in
the investigation period. This increase in market
share has to be seen in the light of the previously
imposed anti-dumping measures from which the
Community industry has benefited. This was
particularly the case with respect to imports from
Japan, Taiwan, China and Hong Kong. Imports
from these countries represented a market share of
44,3 % in 1992, but had fallen to 7,5 % in the
investigation period. Due to the pressure of
dumped imports
the present
proceeding, however, the Community industry was
obliged to reduce prices to achieve this growth in
market share, particularly in the bulk diskette
segment.

concerned by

(c) P r i c e s

a n d p r o f i t a b i l t y

(32) Although the Community industry’s unit costs fell
by 34 %, from ECU 0,488 to ECU 0,324 between
1992 and the investigation period, selling prices
fell by 37 %, from ECU 0,504 to ECU 0,318, over
the same period. Profitability overall, as a con-
sequence, deteriorated from a positive 3,2 % on
sales in 1992 to losses of 1,9 % in the investigation
period.

(d) C o n c l u s i o n o n i n j u r y

(33)

In the light of preceding anaylsis, the Commission
the Commission
concludes
provisonally
industry is suffering material injury.

that

(34) Overall, the situation remains essentially the same
as in the prior proceedings. Production, sales and
capacity utilisation showed positive development,
due in large measure to the expansion of
the
these positive
market. However,

the benefit of

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4. 3. 98

factors has been offset by the low levels of prices,
which remained well below the levels required for
the generation of the profits to finance the invest-
ments needed to allow the Community industry to
keep place with the swiftly changing conditions
evident
information technology.
Indeed, despite the expansion of the market, the
Community industry’s prices fell by 37 % over the
period examined, resulting in a considerably wor-
sened financial situation.

in the area of

(35)

Finally, it should be noted that the evaluation of
the above factors, including the Community indus-
try’s increased market shares, has to be seen in the
light of the fact that, during the period examined,
the Community industry was still suffering from
the effects of past dumping, as established in the
prior proceedings.

the

investigation

Malysia, Mexico and the USA were being dumped
injury to the Community
and causing material
investigation period in the
industry. As
preceding
concerning Malysia,
Mexico and the USA (1 August 1993 to 31 July
1994) overlapped that in the present proceeding by
five months, it is clear that imports from the three
countries in question were also a cause of
the
injury suffered by the Community industry in the
investigation.
period examined in the present
Nevertheless, the dumped imports, from Indonesia,
which
in
increasing quantities
low dumped prices
at
between 1992 and the end of the investigation
period, had a significant impact. These imports
were all the more injurious for an industry which,
since 1990, had already been weakened by, and was
injury
continuously
dumped
from,
the prior proceedings
imports
mentioned above.

suffering
addressed by

the Community market

entered

F. CAUSATION OF INJURY

(36)

The Commission examined whether the material
injury suffered by the Community industry had
been caused by the dumped imports from Indo-
nesia, and whether other factors may have caused
or contributed to that injury.

(39)

1. Effects of the dumped imports from Indo-

nesia

Imports from countries other than Indonesia and
those subject to measures remained stable between
1992 and 1995,
at between 5 and 6 % of
Community consumption. No conclusions as to
the possibility of injurious dumping arising from
these imports can be drawn from the information
available to the Commission at the provisonal stage
of the proceeding.

(37)

those of

shares of

Both the volumes and market
the
dumped imports grew at rates far in excess of the
growth of Community consumption.
In index
terms, consumption grew from 100 in 1992 to 173
in the investigation period; corresponding figures
for the volumes of dumped imports were 100 and
48 700, and for the market shares represented by
these, 100 and 32 400. Given the standardized
nature of the product, and the transparency of the
market, the sales of dumped imports at prices that
undercut
the Community industry by
substantial margins could not have failed to have
negative
the Community
industry, which had to align its prices downwards
the pressure from the
in an attempt
dumped imports, and to capture a viable share of
the Community market with levels of production
allowing the economic employment of resources.
The resulting depression of prices led to the losses
referred to above. Indeed, the Community industry
became loss-making at the same time as Indone-
sian imports
significant
market share of more than 6 %.

reached their present

consequences

to resist

for

2. Effects of other factors

(38)

It should be recalled (see recital 7) that the Council
has already determined that imports of the like
product from Japan, Taiwan, the People’s Republic
the Republic of Korea,
of China, Hong Kong,

(40) Consequently, even if imports originating in coun-
tries other than Indonesia, including those subject
to prior proceedings, had caused injury to the
Community industry, this would no alter the fact
the injury caused by the dumped imports
that
originating in Indonesia, viewed in isolation,
is
material.

3. Conclusion

(41)

In these circumstances, therefore, the Commission
concludes, for the purpose of provisional findings,
that, notwithstanding the injury found to have
been caused by dumped imports
from Japan,
Taiwan,
the People’s Republic of China, Hong
Kong, the Republic of Korea, Malaysia, Mexico and
the United States, the dumped imports from Indo-
nesia, because of their low prices, their growing
share of the Community market between 1992 and
the end of
the investigation period, and the
resulting deterioration in the financial situation of
the Community industry during the same period,
have, in isolation, caused material injury to this
industry.

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G. COMMUNITY INTEREST

1. General consideration

maintain its presence in an important and rapidly-
developing area of
technological significance. If
measures are not imposed, however, the remaining
producers may be forced to cease production
because of a lack of profitability.

(42)

(43)

It should be borne in mind that, in prior proceed-
ings (see recital 7), the Council determined that it
was in the interest of the Community to impose
the
measures in respect of dumped imports of
product concerned. Further, given the overlap
between the investigation period in this proceeding
and in the immediately preceding investigation, a
new, full enquiry into the Community interest in
this case was unwarrented. Moreover, as in the
previous
information was
submitted by users of the product concerned or
other interested parties. Nevertheless, on the basis
of
the Commission
considered the likely impact of measures, or the
absence thereof, on the Community industry and
on other
sector
economic operators
involving the product concerned.

the information available,

proceedings,

in the

no

2. Consequences for the Community industry

companies

concerned were

In 1992, the Community industry consisted of four
small or medium-sized enterprises. Production is
capital-intensive, rather than labour-intensive, and
of
the
responding flexibly to the demands of a growing
Community market. Since 1990, however, growing
competition from dumped imports from various
for
sources has continually created difficulties
Community producers, who have had to repeatedly
avail themselves of the Community anti-dumping
instrument.

capable

(44) As

two
the product has matured, however,
Community producers restructured their invest-
ment and have ceased production of 3,5Z micro-
disks in the Community, thus leaving two com-
panies active in the production and sales of the
product concerned. The remaining producers are
viable, as is evidenced by the fact that between
1994 and 1995, production increased from 242 to
281 million units, and unit costs fell by about
10 %. The Community industry is capable of
efficiently supplying the market
for a product
which, although at a mature stage in its life-cycle,
forms the basic storage medium for a large number
of computer users.

3. Consequences for the supplier industry

(46) Given the output of the Community industry at
over 280 million diskettes in 1995, and its 16,5 %
share of
the industry’s
disapperance would have damaging consequences
for component suppliers. Anti-dumping measures
would, therefore, be in their interest.

the Community market,

4. Consequences for users and consumers

(47) As to the interests of users of 3,5Z microdisks, and
in particular the software industry, any price advan-
tages in the short term have to be seen against the
longer term effects of failing to restore effective
competition. Indeed, as stated above,
to refrain
from acting would seriously threaten the viability
of the Community industry, the disappearance of
which would,
and
competition,
consumers,
including the software houses.

to the detriment of

in fact,

reduce

supply

(48)

Furthermore, the overall downstream price effect
of the duty proposed, taking into account Indone-
sia’s market share, and reasonable assumptions on
market price elasticities, could be a maximum
price increase of less than 2 % at the retail level. It
is considered unlikely, however, that prices will rise
even to this extent as 75 % of imports from Indo-
nesia are bulk diskettes. These are a commodity
product, used largely for duplication, where they
account for a negligible proportion of costs, and it
is therefore by no means certain that a duty-
induced increase will
fully be passed on to
consumers. This expectation is supported by the
existence of a certain degree of production over-
capacity on a global level that limits somewhat the
possibilities of price increases; it is further rein-
forced by the standardised nature of the product,
the market and the effects
the transparency of
noted after the imposition of the previous meas-
ures.

(45)

The imposition of measures would remove the
pressures on the Community market arising from
investigation. This
the dumped imports under
would allow the Community industry to increase
prices to the extent that a reasonable level of oper-
ating profit could be achieved, thus enabling it to

(49)

5. Effective competition and trade distorting

effects

special
In assessing the Community interest,
consideration has to be given to the need to elimi-
nate
injurious
dumping and to restore effective competition.

trade-distorting

effects of

the

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4. 3. 98

Anti-dumping measures only remove the injurious
effects of dumping and are not, consequently, an
obstacle to supply from third countries at
fair
prices. It is only the unfair element in the ex-
porters’ price advantage that is eliminated. In these
circumstances, imports would still complete on the
basis of
true competitive advantage, and
exporters’ access to the Community market would
be unlikely to diminish.

their

6. Conclusions

(50) After

the

various

consideration of

interests
involved, it is provisionally found that the adoption
of measures in the present proceeding will re-
establish fair competition by eliminating the injur-
ious effects of Indonesian dumping practices, and
will offer the Community industry the opportunity
to maintain and develop its activities in the very
important sector of data storage and transmission.
In addition, the market for the component supply
industry in the Community will be maintained.

(51)

Further, in the light of the Council’s findings in
the previous proceedings, the Community interest
requires that, in order to prevent the effects of the
measures already taken from being undermined,
and to avoid discriminating against countries found
to have been dumping and causing injury pro-
tective measures be introduced with regard to
imports of the dumped 3,5Z microdisks subject to
this proceeding.

It is, therefore, in the Community interest to adopt
anti-dumping measures with regard to the dumped
imports originating in Indonesia.

H. DUTY

(52)

(53)

that

The Commission considers
the measures
should take the form of provisional ad valorem
duties. For the purpose of establishing the level of
the provisional duties,
the Commission took
account of the dumping margins found and of the
amount of duty necessary to eliminate the injury
sustained by the Community industry.

Since the injury consists principally of depression
of prices, lack of profitability or losses, the removal
of such injury requires that the industry should be
able to increase prices
levels
without loss of sales volume.

to non-injurious

(54)

(55)

(56)

(57)

(58)

For calculating the necessary price increase, the
Commission considered that the actual prices of
these imports had to be compared to selling prices
that reflect the costs of production of the com-
plainant Community producers, plus a reasonable
amount of profit.

end,

and as

industry,

To that
in prior proceedings
concerning microdisks, the Commission has used
the representative production costs of the com-
plainant
together with the amount of
profit used in the previous proceeding (12 % on
turnover), this being the margin which is consid-
the
ered necessary to ensure the viability of
Community industry and which the industry could
be expected to attain in the absence of dumped
imports.

The resulting prices based on these costs and
profits were compared with the prices of
the
dumped imports used to establish undercutting, as
outlined in recital 28.

The differences between these prices established
on a weighted average basis and expressed as a
percentage of the free-at-Community-frontier price
were above the dumping margins established for
the cooperating producer in Indonesia. It is there-
fore proposed that provisional anti-dumping duties
should be set at the level of the dumping margins
established in the investigation.

be

In the interests of sound administration, a period
fixed within which the parties
should
concerned may make their views known and
request a hearing. Furthermore, it should be stated
that all
this
Regulation are provisional and may have to be
reconsidered for the purpose of any definitive duty
which the Commission may propose,

findings made for the purpose of

HAS ADOPTED THIS REGULATION:

Article 1

1. A provisional anti-dumping duty is hereby imposed
on imports of 3,5Z microdisks used to record and store
encoded digital computer information, falling within CN
code
code
8523 20 90 10), and originating in Indonesia.

8523 20 90

additional

(TARIC

ex

4. 3. 98

EN

Official Journal of the European Communities

L 63/11

The rate of duty applicable to the net

free-at
2.
Community-frontier price, before duty, shall be 41,1 %.

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

4.
The release for free circulation in the Community of
the products referred to in paragraph 1 shall be subject to
the provision of a security, equivalent to the amount of
the provisional duty.

Article 2

Article 3

Without prejudice to Article 20 of Regulation (EC) No
384/96 and pursuant to Aricle 21 thereof, the parties
concerned may make their views known in writing and
apply to be heard orally by the Commission within one
month of the entry into force of this Regulation.

Article 4

Subject to Articles 7, 9, 10 and 14 of Regulation (EC) No
384/96, Article 1 of this Regulation shall apply for a
period of six months unless the Council adopts definitive
measures before the expiry of that period.

The anti-dumping proceeding is hereby terminated as far
as imports of 3,5Z microdisks which contain data or
instructions (other than sound or images) of a kind used
in automatic data-processing machines, falling within CN
code ex 8524 91 10, are concerned.

Article 5

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, 3 March 1998.

For the Commission

Leon BRITTAN

Vice-President