98/299/EC: Commission Decision of 24 April 1998 rejecting the application submitted by Renak International GmbH (Germany) for an exemption pursuant to Commission Regulation (EC) No 88/97 from the anti-dumping duty extended to certain bicycle parts originating in the People's Republic of China
Date: 1998-04-24
Institutions: European Commission
Subjects: China, anti-dumping duty, import, spare part, tariff exemption, two-wheeled vehicle

7. 5. 98

EN

Official Journal of the European Communities

L 133/23

COMMISSION

COMMISSION DECISION

of 24 April 1998

rejecting the application submitted by Renak International GmbH (Germany) for
an exemption pursuant to Commission Regulation (EC) No 88/97 from the
anti-dumping duty extended to certain bicycle parts originating in the People’s
Republic of China

(98/299/EC)

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
the European
Community (1), as amended by Regulation (EC) No 2331/
96 (2),

not members

of

Having regard to Council Regulation (EC) No 71/97 of 10
January 1997 extending the definitive anti-dumping duty
imposed by Regulation (EEC) No 2474/93 on bicycles
originating in the People’s Republic of China to imports
of certain bicycle parts from the People’s Republic of
China, and levying the extended duty on such imports
registered pursuant to Regulation (EC) No 703/96 (3),

Having regard to Commission Regulation (EC) No 88/97
of 20 January 1997 on the authorisation of the exemption
of
imports of certain bicycle parts originating in the
People’s Republic of China from the extension by
Council Regulation (EC) No 71/97 of the anti-dumping
duty imposed by Council Regulation (EEC) No 2474/
93 (4), and in particular Article 7(3) thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

(1)

By Council Regulation (EC) 71/97, the definitive
duty imposed on imports of bicycles originating in
the People’s Republic of China by Regulation (EC)
No 2474/93 was extended to imports of certain

(1) OJ L 56, 6. 3. 1996, p. 1.
(2) OJ L 317, 6. 12. 1996, p. 1.
(3) OJ L 16, 18. 1. 1997, p. 55.
(4) OJ L 17, 21. 1. 1997, p. 17.

(2)

(3)

bicycle parts from that country (hereinafter referred
to as ‘the extended anti-dumping duty').

On 4 April 1997, Renak International GmbH
(hereinafter:
‘Renak International') asked to be
exempted from the extended anti-dumping duty
pursuant to Article 3 of Regulation (EC) No 88/97,
and was suspended from payment of the duty as
from that date.

In order to ascertain whether Renak International’s
operations fell within the scope of Article 13(2) of
Regulation (EC) No 384/96 (hereinafter referred to
as ‘the Basic Regulation'), thus circumventing the
measures in force, the Commission requested the
necessary information from the company and veri-
fied it at its premises.

(4)

The investigation period therefore ran from 1
August 1996 to 31 January 1997.

B. RESULTS OF THE INVESTIGATION

1. Conditions of Article 13(2) of the Basic

Regulation

(a) Start or substantial increase of operations

Renak International was acquired by a Chinese
bicycle manufacturer in 1993 and started its bicycle
assembly operations in June 1995, after the original
investigation of imports of bicycles originating in
the People’s Republic of China.

(b) 60 % of the total value of the parts consti-

tuting the assembled product

It was established that the proportion of Chinese
parts used in the company’s assembly operations
averaged 69 % of the total value of the parts used
in the assembly of bicycles.

(5)

(6)

(7)

(8)

(9)

L 133/24

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Official Journal of the European Communities

7. 5. 98

(c) 25 % rule on the added-value to the parts

brought in

tative of
national.

the total production of Renak Inter-

It was also established that the value-added in the
Community on a per-model basis to the parts
brought in averaged 23 % of the manufacturing
cost of a complete bicycle, and was therefore below
the 25 % threshold set by point (b) of Article 13(2)
of the Basic Regulation.

(12)

In view of the fact that normal values had been
established at fob Taiwan level for the exporters
concerned, resale prices in the Community had to
be made comparable to this level. The actual
comparison was thus made between fob China and
fob Taiwan.

(d) Undermining of the remedial effects of the

duty and evidence of dumping

(i) U n d e r m i n i n g

the methodology
applied
The Commission
described in recitals (19) and (20) of Regulation
(EC) No 71/97. A comparison was established
between the sales prices of all bicycles assembled
by Renak International and sold in the Community
during the investigation period, and the ‘non-
dumped' export prices of Chinese bicycles in the
original investigation.

The comparison was made between identical or
comparable groups of bicycles; and the prices of
the assembled bicycles were adjusted in order to
ensure that the comparison was made at the same
level of trade. The undermining margins for those
groups where
found was
expressed as a percentage of the total non-dumped
import value (cif Community border) of Chinese
bicycles, as established in the original investigation,
for all groups included in the comparison.

undermining was

(10) Overall,

the comparison showed that

the sales
prices of assembled bicycles have undercut
the
non-dumped export prices of Chinese bicycles in
the original investigation period by an average of
15 %.

(11)

(ii) E v i d e n c e o f d u m p i n g

The sales prices for the bicycles assembled by
Renak International
in the Community were
compared to the normal values previously estab-
lished for comparable bicycles, using the same
criteria and the same reference country, namely
Taiwan, as in the original
in as
reasonable a manner as possible. The comparable
models found accounted for 86 % of the units
produced by Renak International during the inves-
tigation period. They were considered represen-

investigation,

(13)

The dumping margin found was 19 %.

(14)

(15)

C. CONCLUSION

For the reasons explained above, it was established
the assembly operations of Renak Inter-
that
national fell within the scope of Article 13(2) of the
Basic Regulation during the investigation period.
Accordingly, pursuant to Article 7(3) of Regulation
(EC) No 88/97, the suspension of payment of the
extended anti-dumping duty is lifted for Renak
International.

The company was informed of the essential facts
and considerations on the basis of which the
Commission intended to propose the rejection of
its request for exemption, and was given an oppor-
tunity to comment. The comments were consid-
ered and, where appropriate, the findings have been
changed accordingly,

HAS ADOPTED THIS DECISION:

Article 1

The application of Renak International GmbH pursuant
to Article 3 of Regulation (EC) No 88/97 to be exempted
from the extended anti-dumping duty is hereby rejected.

Article 2

This Decision is addressed to the Member States and to
Renak
15,
D-08468 Reichenbach.

International GmbH, Dammsteinstraße

Done at Brussels, 24 April 1998.

For the Commission

Leon BRITTAN

Vice-President