98/323/EC: Commission Decision of 29 April 1998 rejecting the application submitted by Eurocycles (France) 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: 1998-04-29
Institutions: European Commission
Subjects: China, anti-dumping legislation, import, spare part, tariff exemption, two-wheeled vehicle

L 141/36

EN

Official Journal of the European Communities

13. 5. 98

COMMISSION DECISION

of 29 April 1998

rejecting the application submitted by Eurocycles (France) 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

(98/323/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(3)

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
the European
from countries
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)

(2)

By Regulation (EC) No 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 bicycle
parts from that country (hereinafter referred to as
the ‘extended anti-dumping duty').

On 22 January 1997, Eurocycles asked to be
exempted from the extended anti-dumping duty
pursuant to Article 3 of Regulation (EC) No 88/97,
and was suspended from the payment of the duty
as from that date.

(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.

(4)

(5)

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

Since Eurocycles’ request immediately followed the
introduction of the extended anti-dumping duty
Regulation, it was agreed that Eurocycles should
reply to the same questionnaire which had ori-
in the
ginally been sent
circumvention investigation. The
investigation
period therefore ran from 1 April 1995 to 31 March
1996.

to interested parties

B. RESULTS OF THE INVESTIGATION

1. Level of cooperation

company,

The on-the-spot verification revealed that part of
the information submitted by the company in its
questionnaire was inaccurate and incomplete. Even
after the on-the-spot verification, the Commission
still lacked precise information as to the technical
specifications of the bicycle models assembled by
the
the
Community and the selling prices for each model.
Furthermore, it also appeared that the company
had withheld information in its reply to the ques-
tionnaire which it would have been appropriate to
mention. As a consequence, the Commission had
to base part of its conclusions on the facts available,
in accordance with Article 18 of the Basic Regula-
tion.

quantities

sold

the

in

The company was informed accordingly.

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

Regulation

(a) Start or substantial increase of operations

(6)

Eurocycles started its bicycle assembly operations
in 1995, after the original investigation on imports
of bicycles originating in the People’s Republic of
China.

13. 5. 98

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Official Journal of the European Communities

L 141/37

(7)

(8)

(9)

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

tuting the assembled product

On the basis of the facts available, the Commission
established that the proportion of Chinese parts
used in the company’s assembly operations ranged
from 65 % to 94 % of the total value of the parts
used in the assembly of bicycles.

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

brought in

It was also established, using the facts available,
that the value added in the European Community
on a per-model basis to the parts brought in aver-
aged 19 % of the manufacturing cost of a complete
therefore below the 25 %
bicycle,
threshold set by of Article 13(2)(b) of the Basic
Regulation.

and was

(d) Undermining of the remedial effects of the

duty and evidence of dumping

The poor level of accuracy of the reply to the
questionnaire and the evidence collected on the
spot did not allow the Commission to make a
detailed calculation of dumping and undermining.
In the absence of the elements referred to in recital
5, which are deemed essential for the determina-
tion of undermining and dumping, the Commis-
sion concluded that the findings of the circumven-
tion investigation which led to the extension of the
anti-dumping duty to bicycle parts under Regula-
tion (EC) No 711/97 should be applied to Euro-
cycles as regards undermining and dumping.

(10)

(11)

C. CONCLUSION

For the reasons explained above, it was established
that
the assembly operations of Eurocycles fell
within the scope of Article 13(2) of the Basic Regu-
lation 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 Eurocycles.

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 Eurocycles 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

Eurocycles,
4, rue Pierre et Marie Curie,
F-49460 Montreuil-Juign(cid:130).

Done at Brussels, 29 April 1998.

For the Commission

Leon BRITTAN

Vice-President