98/563/EC: Commission Decision of 7 October 1998 terminating the anti-dumping proceeding concerning imports of synthetic fibre ropes originating in the Republic of Korea (notified under document number C(1998) 2975)
Date: 1998-10-07
Institutions: European Commission
Subjects: EU control, South Korea, anti-dumping legislation, import, man-made fibre, manufactured goods

8. 10. 98

EN

Official Journal of the European Communities

L 271/39

COMMISSION DECISION

of 7 October 1998

terminating the anti-dumping proceeding concerning imports of synthetic fibre
ropes originating in the Republic of Korea

(notified under document number C(1998) 2975)

(98/563/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 last amended by Regulation (EC) No
905/98 (2), and in particular Article 9 thereof,

not members

of

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

(4)

A. PROCEDURE

In July 1997, the Commission announced by a
notice published in the Official Journal of the
European Communities (3),
the initiation of an
anti-dumping proceeding concerning imports into
the Community of synthetic fibre ropes originating
in the Republic of Korea and commenced an
investigation.

This was the result of a complaint lodged in June
1997 by the Liaison Committee of European
Twine, Cordage and Netting Industries (Eurocord)
the Community industry. The
on behalf of
facie
prima
complaint
evidence of dumping and of material
injury
resulting therefrom to justify the opening of a
proceeding.

contained

sufficient

The Commission officially advised the exporting
producers and importers known to be concerned as
well as their associations, the representatives of the
exporting country concerned,
the complainant
Community producers and known Community
users about the initiation of the proceeding. Inter-
ested parties were given the opportunity to make
their views known in writing and to request a
hearing.

The Commission sent questionnaires to the five
alleged Korean exporting producers mentioned in
the complaint and received replies from the two
the Commission sent
listed below. In addition,

to all

questionnaires
importers known to be
concerned. One importer responded that it was not
concerned by the proceeding. No other importers
cooperated in the proceeding. A number of
exporting producers in the country concerned, as
well
producers,
complainant Community
Community users and importers made their views
known in writing. All parties who so requested
within the given time limit and indicated that there
were particular reasons why they should be heard
were granted a hearing.

as

(5)

(6)

In view of the large number of Community produ-
cers supporting the complaint and the time limits
established in Article 6(9) of Regulation (EC) No
384/96 (hereinafter referred to as the ‘basic Regula-
tion'), the Commission investigated injury on the
basis of a selection of such producers in accordance
with Article 17 of the basic Regulation. Only the
cooperating Community producers included in the
selection are mentioned below.

The Commission then sought and verified all
information deemed necessary for the assessment
of the facts and carried out investigation visits at
the premises of the following companies:

(a) Community producers (selection):

— Randers (Randers, Denmark),

— Oliveira (Porto, Portugal),

— Verto Portugal (Porto, Portugal),

— Birh Fr(cid:138)res (Urimenil, France),

— Quintas & Quintas (Porto, Portugal),

— Cotesi (Porto, Portugal),

— Sicor (Porto, Portugal),

— Geo Gleistein & Sohn (Bremen, Germany);

(b) Exporting producers in the country concerned:

— Dae Sung Rope Mfg Co. Ltd (Pusan,

Republic of Korea),

— Manho Rope & Wire Ltd (Pusan, Republic

of Korea).

(1) OJ L 56, 6. 3. 1996, p. 1.
(2) OJ L 128, 30. 4. 1998, p. 18.
(3) OJ C 232, 31. 7. 1997, p. 6.

(7)

The investigation of dumping covered the period
from l July 1996 to 31 May 1997 (hereinafter
referred to as ‘the investigation period').

L 271/40

EN

Official Journal of the European Communities

8. 10. 98

B. PRODUCT

CONCERNED
PRODUCT

AND

LIKE

(12)

(8)

(9)

The product under consideration is twine, cordage,
ropes and cables, whether or not plaited or braided
and whether or not impregnated, coated, covered or
sheathed with rubber or plastics of polyethylene or
polypropylene, other than binder and baler twine,
measuring more than 50 000 decitex (5 g/m),
plaited and other, as well as other synthetic fibres
of nylon or other polyamides or of polyesters
measuring more than 50 000 decitex (5 g/m),
plaited and other
‘synthetic fibre
ropes'). The product as described above falls within
CN codes 5607 49 11, 5607 49 19, 5607 50 11 and
5607 50 19.

(hereinafter

Synthetic fibre ropes are used for a wide variety of
naval and industrial applications, in particular for
shipping (especially for mooring purposes), and the
fishing industry.

and uses

applications

The investigation showed that the different types of
synthetic fibre ropes manufactured and sold in the
Republic of Korea had the same basic physical
characteristics,
those
exported from the Republic of Korea to the
Community. The same is true with regard to the
ropes manufactured and sold in the Community
and those exported from the Republic of Korea to
the Community. It is therefore concluded that they
must be considered like products within the
meaning of Article 1(4) of the basic Regulation.

as

C. DUMPING

(10)

For the purposes of the dumping calculations, the
product concerned was divided into ‘types' on the
basis of which data were collected. This classi-
fication into types depended, inter alia, on the raw
material composition,
strands
making up the ropes and the type of yarn used.

the number of

1. Normal value

(15)

(11)

In order to establish normal value,
it was first
examined whether the total domestic sales of the
cooperating exporting producers were
repres-
entative in accordance with Article 2(2) of the basic
Regulation, i.e. whether the total volume of such
sales constituted 5 % or more of the total volume
of export sales to the Community. This assessment
revealed that each of the two cooperating exporting
producers in the Republic of Korea had repres-
entative domestic sales of synthetic fibre ropes.

total
The Commission then examined whether
domestic sales of each type were representative, i.e.
whether the volume of such sales constituted 5 %
or more of the sales volume of the corresponding
type exported to the Community.

(13)

For those types meeting this test, the Commission
subsequently examined whether the domestic sales
of each type could be considered as being made in
the ordinary course of trade, by determining the
proportion of profitable sales of the type in ques-
tion.

In cases where the volume of sales below unit cost
represented less
sales
than 20 % of
volume, the normal value for the type concerned
was established on the basis of
the weighted
average price of all domestic sales.

the total

In cases where the volume of sales below unit cost
represented 20 % or more but less than 90 % of
the total sales volume, the normal value for the
type concerned was established on the basis of the
weighted average price of profitable domestic sales
only.

For one type, one of the cooperating exporting
producers had made insufficient domestic sales.
Consequently, normal value was based on the
weighted average of the ex-works price charged by
the other cooperating exporting producer
for
representative domestic sales of the corresponding
type made in the ordinary course of trade.

2. Export price

(14) As the two cooperating exporting producers made
export
sales
to
in
independent
accordance with Article 2(8) of the basic Regula-
tion, established on the basis of the prices actually
paid or payable by these independent customers.

to the Community directly
importers, export prices were,

3. Comparison

For the purpose of ensuring a fair comparison
between the normal value and the export price, due
allowance in the form of adjustments was made for
differences which were claimed and demonstrated
to affect price comparability in accordance with
Article 2(10) of the basic Regulation. These adjust-
ments were made in respect of transport, insurance,
handling and ancillary costs, import charges, credit
costs and rebates.

(16)

The two cooperating exporting producers claimed
that an allowance should be granted for the import

8. 10. 98

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Official Journal of the European Communities

L 271/41

charges borne by the raw material imported. This
adjustment was granted where the duties shown to
be paid on raw materials imported and physically
incorporated in the product sold domestically were
shown to be refunded when exporting the products.
The two cooperating companies claimed an allow-
ance for the credit cost of sales on the domestic
market. The allowance claimed was made on the
basis of a so-called ‘open account', i.e. a revolving
payment system, without any evidence of an agree-
ment on payment terms between the seller and the
buyer at
the sale. This claim was
rejected on the grounds that, in accordance with
Article 2(10)(g) of the basic Regulation, an adjust-
ment can only be given for the number of days
shown to be agreed at the date of the sale, as only
the expenses relating to that number of days can be
considered to have influenced the price. Such an
agreement does not exist where payments were
made on an open account basis and the claim
consequently could not be accepted.

the date of

4. Dumping margins
In accordance with Article 2(11) of the basic Regu-
lation, the dumping margins were established on
the basis of a comparison between the weighted
average normal value by type and the weighted
average export price of the corresponding type at
an ex-factory level.
This
average
comparison
dumping margins of 1,4 and 0,5 % for Dae Sung
Rope Mfg Co. Ltd and for Manho Rope & Wire Ltd
respectively, i.e. de minimis margins.

showed weighted

(17)

(18)

(19)

(20) A comparison of Eurostat data with the volume of
exports to the Community reported by the co-
operating exporting producers showed that these
producers accounted for a significant share of all
exports
to the
from the Republic of Korea
Community. The investigation also showed that the
remaining exports were made by exporting produ-
cers which did not cooperate in the investigation
although they were known to be concerned and
advised by the Commission of the initiation of the
proceeding. The dumping margin for these expor-
ters was determined on the basis of the facts avail-
able, in accordance with Article 18 of the basic
Regulation. In order to avoid encouraging non-
cooperation of exporting producers and circumven-
tion of anti-dumping measures, it was found that

the dumping margin for these exports should be
determined on the basis of the highest dumping
margin of a representative type exported by one of
the co-operating exporting producers. On this
basis, the residual dumping margin is 5,4 %.

D. CONCLUSION AND TERMINATION OF THE

PROCEEDING

the imports of

the low level of

imports made at
In view of
dumped prices (see the preceding recital) it was
examined whether or not
the
product concerned both originating from co-
operating and non-cooperating producers,
taken
together on a weighted average basis, were made at
dumped prices. It was found that overall dumping
only occurred at a de minimis level. Thus, as any
negative situation of
the Community industry
could not be attributed to dumping by imports of
in question from the Republic of
the product
Korea,
it was concluded that any further exam-
ination of injury or Community interest was not
necessary.

the
The interested parties were informed of
Commission’s
the
intention
proceeding and were given the opportunity to
comment. The comments have been taken into
account and the findings altered where appropriate.

terminate

to

(21)

(22)

(23) Given the above,

it was concluded that

the
proceeding concerning imports of synthetic fibre
ropes originating in the Republic of Korea should
be terminated without the imposition of measures,

HAS DECIDED AS FOLLOWS:

Sole Article

The anti-dumping proceeding concerning imports of
synthetic fibre ropes falling within CN codes 5607 49 11,
5607 49 19, 5607 50 11 and 5607 50 19 originating in the
Republic of Korea is hereby terminated.

Done at Brussels, 7 October 1998.

For the Commission

Leon BRITTAN

Vice-President