Council Regulation (EC) No 2584/98 of 27 November 1998 amending Regulation (EC) No 710/95 imposing a definitive anti-dumping duty on imports of colour television receivers originating in Malaysia, the People's Republic of China, the Republic of Korea, Singapore and Thailand and collecting definitively the provisional duty imposed
Date: 1998-11-27
Institutions: Council of the European Union
Subjects: China, South Korea, South-East Asia, anti-dumping duty, import, television equipment

2. 12. 98

EN

Official Journal of the European Communities

L 324/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2584/98

of 27 November 1998

amending Regulation (EC) No 710/95 imposing a definitive anti-dumping duty
on imports of colour television receivers originating in Malaysia, the People’s
Republic of China, the Republic of Korea, Singapore and Thailand and collecting
definitively the provisional duty imposed

THE COUNCIL OF THE EUROPEAN UNION,

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), hereinafter referred to as the ‘basic Regu-
lation', and in particular Articles 11(2) and (3) thereof,

not members

of

Having regard to the proposal of
submitted after consulting the Advisory Committee,

the Commission,

Whereas:

(1)

(2)

(3)

A. PREVIOUS PROCEDURE

By Regulation (EEC) No 1048/90 (2), the Council
imposed a definitive anti-dumping duty on imports
of small-screen colour television receivers, i.e. those
with a diagonal screen size of more than 15,5 cm
but no greater than 42 cm, originating in the
Republic of Korea (hereinafter
referred to as
Korea), hereinafter referred to as SCTVs.

(4)

By Regulation (EEC) No 2093/91 (3), the Council
imposed a definitive anti-dumping duty on imports
of SCTVs originating inter alia in the People’s
Republic of China (hereinafter referred to as the
PRC).

By Regulation (EC) No 710/95 (4),
the Council
imposed a definitive anti-dumping duty on imports
of colour television receivers with a diagonal screen
measurement exceeding 15,5 cm (hereafter referred
to as CTVs) and originating in Malaysia, the PRC,

(1) OJ L 56, 6. 3. 1996, p. 1. Regulation as last amended by
Regulation (EC) No 905/98 (OJ L 128, 30. 4. 1998, p. 18).
(2) OJ L 107, 27. 4. 1990, p. 56. Regulation as amended by
Regulation (EEC) No 2900/91, (OJ L 275, 2. 10. 1991, p. 24).

(3) OJ L 195, 18. 7. 1991, p. 1.
(4) OJ L 73, 1. 4. 1995, p. 3.

Korea, Singapore and Thailand. Although this
proceeding established that there were no longer
grounds for differentiating between colour televi-
sion receivers according to their screen size and
was therefore initiated in respect of all CTVs,
including SCTVs, since anti-dumping measures
were already in force in respect of SCTVs origin-
ating in Korea and the PRC, the scope of the
anti-dumping
investigation and the definitive
duties imposed by Regulation (EC) No 710/95 as
regards the PRC and Korea were limited to colour
televisions with a diagonal screen measurement
exceeding 42 cm, i.e. large-screen CTVs.

B. REVIEW INVESTIGATIONS

(EACEM)

producers

on behalf

representing

Following the publication, in October 1994, of a
notice of
the anti-
the impending expiry, of
dumping duty in force with regard to SCTVs
originating in Korea (5),
in December 1994 the
Commission received a request for a review lodged
by the Association of European Consumer Electro-
of
nics Manufacturers
Community
a major
proportion of the total production of the product
request
concerned in the Community. The
contained evidence of increased dumping, based on
a
the product
concerned sold in Korea and the Korean export
to the Community. Moreover, EACEM
prices
submitted that if the measures were allowed to
lapse, dumping would continue and increase even
further. As regards injury, the request presented
evidence of
substantial price undercutting by
Korean exports and insufficient profitability of the
Community industry.

comparison of

the prices of

(5) OJ C 303, 29. 10. 1994, p. 3.

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Official Journal of the European Communities

2. 12. 98

(5)

In May 1995, EACEM lodged a request for an
interim review pursuant to Article 11(3) of Regula-
tion (EC) No 3283/94 (1), since then replaced by
the basic Regulation, of the anti-dumping measures
applicable to SCTVs originating in the PRC, on
behalf of the same Community producers.

request

contained evidence of

The
increased
dumping based on a comparison of constructed
normal value established in Singapore (which was
suggested as an analogue country) with the Chinese
export prices of
the product concerned to the
Community. As regards injury, EACEM presented
evidence of substantial price undercutting by the
Chinese imports and insufficient profitability of
Community producers.

It should further be noted that Regulation (EC)
No 710/95 concluded that both SCTVs and large-
screen CTVs should be considered as forming one
single product. It was therefore considered that a
review should not be restricted to those colour tele-
(EEC)
vision receivers covered by Regulations
No 1048/90 and (EEC) No 2043/91, but should
also cover colour television receivers falling under
Regulation (EC) No 710/95.

In April and in August 1995, respectively,
the
Commission announced, by two notices published
in the Official
the European
Journal
Communities (2), the initiation of the abovemen-
tioned review investigations pursuant
to Article
11(3) of the basic Regulation.

of

As both interim reviews were in progress at the end
of
the period of application of measures with
regard to SCTVs, and following the provisions of
Article 11(7) of the basic Regulation, the reviews
also covered the circumstances set out in Article
11(2) thereof, i.e. those of an expiry review.

The Commission officially advised the producers,
exporters and importers known to be concerned,
the representatives of the exporting country and
the complainant Community producers of
the
initiation of
the investigation. Interested parties
were given the opportunity to make their views
known in writing and to request a hearing within a
set time limit.

The Commission sent questionnaires to parties
known to be concerned. It received replies to its
questionnaires from two Korean companies (here-
inafter referred to as the ‘two cooperating Korean
the
10
producers/exporters'),

importers

in

(6)

(7)

(8)

(9)

(10)

(1) OJ L 349, 31. 12. 1994, p. 1.
(2) OJ C 105, 26. 4. 1995, p. 2, concerning Korea and OJ C 203,

8. 8. 1995, p. 4, concerning the PRC.

Community related to producers/exporters and
four Community producers.

(11)

The Commission sought and verified all informa-
tion it deemed necessary for the purpose of its
determination and carried out investigations at the
premises of the following companies:

(a) Complainant Community producers

— Bang & Olufsen A/S, Struer, Denmark,

— Grundig AG, F(cid:129)rth, Germany, and its
factories and/or subsidiaries in Germany,
Austria, Spain and Italy,

— Philips

Industrial

Activities,

Bruges,
Belgium; Philips SpA., Monza, Italy, Philips
Electronic Grand Publique, Dreux, France,
and Philips sales subsidiaries in Italy, Spain,
France and Germany,

— Thomson Multimedia, Courbevoie, France,
in

and its
factories and/or
France, Spain, Germany and Italy;

subsidiaries

(b) Exporters/producers

— LG Electronics

Inc., Seoul

(Republic of

Korea),

— Samsung Electronics Co., Ltd,

Seoul

(Republic of Korea);

(c) Importers related to exporters/producers

— LG

Deutschland

GmbH, Willich

(Germany),

— LG Goldstar France SA, Lognes (France),

— Samsung Electronics GmbH,

Sulzbach

(Germany),

— Samsung Electronics
(United Kingdom),

(UK) Ltd, Surbiton

— Samsung Electronics France SA, Roissy

(France),

— Samsung Electronics Svenska AB., Uppland

(Sweden).

(12)

(13)

The period of investigation for the determination
of dumping was from 1 January 1994 to 31 March
1995 (hereinafter referred to as ‘the investigation
period'). The examination of injury covered the
period from 1 January 1991 to 31 March 1995.

Interested parties were informed in writing of the
essential facts and considerations on the basis of
which it was intended to recommend amending
the existing measures. The parties were also granted
a reasonable period within which to make repre-
sentations subsequent to the disclosure. The oral
and written comments presented by the parties
were considered and, where appropriate, the find-
ings were modified to take account of them.

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C. PRODUCT

1. Product under consideration

(14)

The product covered by these review investigations
is colour television receivers, with integral tube,
with a diagonal measurement of
screen
exceeding 15,5 cm.

the

ex

8528 10 62

8528 10 58,

The investigation was opened for products falling
ex 8528 10 52, 8528 10 54,
within CN codes
8528 10 56,
and
8528 10 66. Subsequently, the CN codes for the
product in question were changed by Commission
Regulation (EC) No 2448/95 of 10 October 1995
amending Annex I to Council Regulation (EEC)
No 2658/87 on the tariff and statistical nomencla-
ture and on the Common Customs Tariff (1). The
product for which the proceeding was opened is
ex 8528 12 52,
now covered by CN codes
8528 12 54, 8528 12 56, 8528 12 58, ex 8528 12 62
and 8528 12 66.

(15)

Regulation (EC) No 710/95 confirmed that all
CTVs with integral tube, with a diagonal screen
measurement exceeding 15,5 cm, with the excep-
tion of those mentioned in recital 16 of this Regu-
lation, should be considered as one product. Thus,
regardless of
SCTVs
whether the width/height ratio was 1,5:1 or 16:9,
are considered as one product.

and large-screen CTVs,

The present investigation was initiated inter alia
on the grounds that, as in the case of imports of
CTVs originating in Malaysia, Singapore and Thai-
land, uniform treatment, both with regard to the
level as well as to the duration of the measures,
should be accorded to all CTVs originating in the
PRC and in Korea falling under the abovemen-
tioned Regulations, because these CTVs should be
considered as forming one single product. During
the investigation carried out
subsequently no
submissions were received to contradict the finding
that the CTVs, as defined above and covered by the
present investigations, should be considered as one
single product. Indeed, the CTVs subject to invest-
igation have similar basic physical and technical
characteristics, serve the same function, are inter-
changeable to a considerable extent, compete
directly with each other and cannot be differen-
tiated on the market as distinct products.

(16)

The measures adopted by Regulation (EC) No 710/
95 did not cover D2MAC sets and high definition
television (HDTV) since these products, which
introduced qualitative technical changes in CTVs,
were at that time still in the development stage and

(1) OJ L 259, 30. 10. 1995, p. 1.

were not available to the public except in very
limited circumstances. Regulation (EC) No 710/95
confirmed however that the situation of these two
products should be re-examined on the basis of
information relating to dumping and injury with a
view to determining whether such non-application
of measures would be justified should a review of
measures be carried out. The application for review
did not contain a request to include such products
in the scope of the review and the notice of initia-
tion consequently excluded them from the scope of
this investigation. In addition, no submission was
received in the course of the investigation request-
ing the inclusion of D2MAC sets and HDTV in the
therefore
scope of
concluded that the circumstances in this respect
had not changed in relation to the previous invest-
igation and that the investigation should not cover
these two types of CTVs.

investigation.

It was

the

(17)

In these circumstances, all CTVs as defined in re-
citals 14 to 16 should be considered as forming a
single product for the purposes of this proceeding.

2. Like product

(18)

The investigation showed that the CTVs manufac-
tured and sold in the Community by
the
Community industry closely resembled the CTVs
exported from the PRC and Korea. They are there-
fore alike within the meaning of Article 1(4) of the
basic Regulation.

The same holds true with regard to CTVs produced
and sold in Singapore which served as a reference
country for the purpose of establishing normal
value for exports originating in the PRC. This
conclusion was
in
broadcasting and reception systems which exist
between, on the one hand, some Member States,
and, on the other hand, the remaining Member
States as well as Singapore.

reached despite differences

As far as CTVs produced and sold in Korea as
exported to the
compared to Korean CTVs
Community are concerned, these also were found
to be alike within the meaning of Article 1(4) of the
basic Regulation since they have an identical use
and have the same basic technical characteristics,
differing only in broadcasting and reception
systems. It was found that CTVs manufactured in
Korea,
sold domestically and exported to the
Community and CTVs manufactured and sold in
the Community by Community producers are alike
in their physical characteristics and uses. They are
therefore considered as a like product in accord-
ance with Article 1(4) of the basic Regulation.

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D. DUMPING

(22)

1. Normal value

(a) Korea

Firstly, the Commission found that although Korea
was selected as a market economy third country for
the purpose of
investigation con-
the original
cerning Chinese SCTVs, which led to the adoption
of Regulation (EEC) No 2093/91, Singapore was
chosen as market economy third country in the
most recent investigation concluded by Regulation
(EC) No 710/95. The vast majority of Chinese
imports are not SCTVs but
large-screen CTVs
which were dealt with by Regulation (EC) No 710/
95. Thus, as far as the selection of a reference
country was concerned, the selection of Singapore
meant that the same methodology was applied for
the most significant part of Chinese exports as in
the investigation which led to one of the anti-
dumping measures under review.

Secondly, the volume of total sales of CTVs in
Singapore is higher than the volume of Chinese
exports of CTVs to the Community. Moreover,
CTV sales destined for local consumption by the
only cooperating producer in Singapore, Philips
Singapore Pte Ltd, were well above the 5 %
threshold compared to Chinese exports to the
Community.

the

fact

that

Thirdly, it was found that Singapore’s CTV market
is competitive. There are five CTV producers in
Singapore which also sell on their domestic market.
Their domestic sales compete with imports from
various countries, in particular Japan. Imports of
CTVs are not subject to a customs duty and there
are no further restrictions on access to the Singa-
pore market. The
cooperating
producer in the market economy third country is
related to one of the applicant Community produ-
cers which requested the initiation of the review
does not invalidate the choice of Singapore because
the investigation has shown that the relationship
did not influence the information on which the
findings concerning dumping were based. In this
respect, it should be noted that, as explained below,
normal value was mostly based on domestic sales
prices of
the company concerned in Singapore
which, given the above, were the result of normal
market forces.

(23)

(24)

(25)

Fourthly, the products produced and sold in Singa-
pore and Chinese exports to the Community, with
the exception of exports to France and the United
Kingdom, have the same broadcasting and recep-
tion system. According to the information avail-
able, as far as other features are concerned, the
CTVs produced and sold in Singapore are also

(19)

The investigation confirmed the findings contained
in Regulation (EC) No 710/95, as regards the tech-
nical differences between CTVs exported to the
Community and those sold on the Korean market.
The models sold on the Korean domestic market
employed different broadcasting and reception
systems compared to models exported to the
Community. Furthermore, the exported models, on
the one hand, and the domestic models, on the
other, showed a wide variety of differences and
combinations
it was
concluded that the physical differences between
CTVs exported from Korea and those sold domest-
ically were such that the use of domestic sales
would not permit a proper comparison. In accord-
ance with Article 2(3) of the basic Regulation, it
was therefore decided to establish normal values on
the basis of constructed values for each model of
the product concerned exported to the Com-
munity.

features. Therefore,

of

(20) Constructed values were calculated by adding to
the manufacturing costs incurred by the exporters/
producers when producing the model in question,
a reasonable amount
selling, general and
for
administrative expenses (hereinafter referred to as
SGA expenses) and profit. The amount for SGA
expenses and profit was established, pursuant to the
first sentence of Article 2(6) of the basic Regulation,
on the basis of domestic sales of all types of the
like product in the ordinary course of trade, made
by each of the two Korean exporters/producers in
question.

(b) PRC

(i) C h o i c e

o f

t h e m a r k e t

e c o n o m y

t h i r d c o u n t r y

(21)

Since for the purpose of this investigation the PRC
could not be considered as a market economy
country, normal value had to be determined on the
basis of the price or constructed value in a market
economy third country. In the notice of initiation
it was stated that the Commission envisaged using
Singapore as an appropriate market economy third
country and all interested parties were given the
opportunity to comment on this. The comments
received were, when substantiated, duly taken into
account.

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Official Journal of the European Communities

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comparable with those exported from the PRC to
the Community. The differences in the broad-
casting and reception system do not, in any case,
affect the comparability of the products in question
as these differences have only an insignificant
impact on their cost of production and market
value.

(29)

(26)

In the light of the foregoing and in accordance
with Article 2(7) of
is
concluded that Singapore is an appropriate market
economy third country.

the basic Regulation,

it

selected
then assessed for each model
It was
whether sufficient sales had been made in the or-
dinary course of trade in accordance with Article
2(4) of the basic Regulation. For three models, the
to, or
weighted average selling price was equal
higher than,
the weighted average unit cost of
production and normal value was established on
the basis of
the weighted average sales prices
actually paid for all domestic sales of that model.
For one model there were insufficient sales in the
ordinary course of trade, and normal value was
therefore constructed in accordance with Article
2(3) and (6) of the basic Regulation, i.e. on the basis
of
incurred by this
company when producing the model in question
plus a reasonable amount for SGA expenses and
profit.

the manufacturing costs

(ii) C a l c u l a t i o n o f

t h e n o r m a l

v a l u e

(27) As no Chinese exporters or

importers of

it was found that

the
product concerned cooperated, for the purpose of
establishing normal value, it was not possible to
select models in the market economy third country
which corresponded exactly to the types of the
product concerned imported into the Community.
It was therefore decided to establish one normal
value for each CN code covered by the review
investigation with the exception of CN codes
8528 12 62 and 8528 12 66. As far as CN code
8528 12 62 is concerned,
the
volume of imports reported by Eurostat was very
small and that the only cooperating producer in
the market economy third country did not produce
or sell a model falling within this CN code on its
domestic market. In view of
the
quantity imported and reported under this CN
code accounted for only 4,7 % of total imports of
the product concerned,
the
investigation of the other models could already be
considered to be representative for the Chinese
imports concerned. With regard to CTVs falling
within CN code 8528 12 66, it was found that these
imports
total
imports from the PRC and could therefore have no
effect on the calculation of the dumping margin.

it was decided that

than 0,01 % of

represented less

the fact

that

(28)

In view of
the wide variety of CTV models
produced and sold by the cooperating producer in
the market economy third country it was decided,
on the basis of
the information available from
EACEM, to select for each of the remaining four
CN codes in question one model which corres-
ponded best
the imported
to the features of
information available
product
concerning the features of Chinese imports into
the Community was that submitted by EACEM
and confirmed by an independent market survey.

concerned. The

(30)

The amount for SGA expenses and profit was based
on actual data pertaining to production and sales,
in the ordinary course of trade, of representative
models of the like product, made by the cooper-
in the market economy third
ating producer
country.

2. Export price

(a) Korea

(31)

(32)

(33)

In accordance with Article 2(8) of the basic Regula-
tion, where export sales were made directly to unre-
lated importers, export prices were established on
the basis of the prices actually paid or payable for
the product sold for export.

In accordance with Article 2(9) of the basic Regula-
tion, where exports were made to related com-
panies which imported the product concerned into
the Community, export prices were constructed on
the basis of the prices at which the imported prod-
resold to independent buyers.
ucts were first
incurred
Adjustments were made for all costs
between importation and resale, including customs
duties, anti-dumping duties, a reasonable margin
for SGA expenses as well as for profit.

that related
It should be noted in this context
importers
from their
received reimbursements
Korean parent companies for advertising and after
sales expenses incurred in relation to sales of CTVs
in the Community. As these reimbursements rep-
resented expenses which were originally paid by
the related importer and were normally incurred

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Official Journal of the European Communities

2. 12. 98

between importation and resale, they were incor-
porated in the SGA expenses of
the related
importer. Any other approach would be in conflict
with the provisions of the third subparagraph of
Article 2(9) of the basic Regulation according to
which costs normally borne by an importer but
paid by any party, either
in or outside the
Community, shall be deducted from the resale
price.

(34)

an

by

exporter/producer

The determination of the level of profit was based
on reliable and representative information sub-
mitted
concerned,
showing the profit or losses achieved or incurred by
unrelated importers in the British, Danish, Dutch,
French and German markets. Only data con-
cerning unrelated importers whose resales of CTVs
were actually profitable have been taken into
consideration for the determination of the profit
margin.

(b) PRC

facts

the best

available were

(35) Given the lack of cooperation from the Chinese
producers and from importers in the Community,
the export prices were determined according to
facts available in conformity with Article 18 of the
basic Regulation. In this respect, it was considered
that
the data
concerning quantities and prices reported by Euro-
stat and by the customs authorities of the three new
Member States with regard to imports of CTVs
from the PRC falling within CN codes ex
8528 12 52,
and
8528 12 58. Data for the three new Member States
were only available for January, February and
March 1995 because before 1995 these countries
had a different customs nomenclature from that of
the Community.

8528 12 54,

8528 12 56

(36)

It should be noted that the export price was also
based on information from Eurostat and the
customs authorities of the three new Member States
with regard to CN code 8528 12 52, although this
CN code also covered imports of CTVs whose
screen size had a diagonal measurement of 15,5 cm
and less because, according to the information
the import
available submitted by the EACEM,
volumes of such very small CTVs were negligible.

3. Comparison

(37) Concerning Korea, pursuant to Article 2(11) of the
basic Regulation, the constructed normal value by
model was compared on an ex-factory basis and at

the same level of
weighted average export price.

trade to the corresponding

For the purpose of a fair comparison, due allow-
ance in the form of adjustments was made for
differences which were claimed and for which it
was demonstrated that they affect price compar-
ability. These adjustments were made, in accord-
ance with Article 2(10) of the basic Regulation, in
insurance,
respect of rebates, packing,
handling and ancillary costs, credit costs and
warranty.

transport,

(38) Concerning the PRC, in accordance with Article
2(11) of the basic Regulation, the weighted average
normal value as calculated above was compared
with the weighted average export price. For the
purpose of a fair comparison and in accordance
the basic Regulation, due
with Article 2(10) of
allowance in the form of adjustments was made for
differences affecting price comparability in respect
of transport, insurance, credit costs, indirect taxes
and commissions, on the basis of the facts avail-
able, as stated above.

4. Dumping margin

(a) Korea

(39)

(40)

(41)

comparison

The
of
revealed
dumping, the dumping margin corresponding to
the amount by which the normal value for each
model exported exceeded the export price.

existence

the

The weighted average dumping margins estab-
lished for the two cooperating Korean exporters/
producers, expressed as a percentage of the free-at-
Community-frontier price is de minimis according
to Article 9(3) of the basic Regulation:

— LG Electronics Inc.:

— Samsung Electronics Co.:

1,4 %

1,8 %

For any Korean producer/exporter involved in the
proceeding which neither replied to the Commis-
sion’s questionnaire in full nor otherwise made
itself known, the dumping margin was determined,
on the basis of the facts available in accordance
with the provisions of Article 18(1) of the basic
Regulation.

A comparison of the data on the volume of exports
to the Community provided by the two cooperating
Korean exporters/producers with Eurostat statistics
there was a high level of non-co-
showed that
operation. Indeed, the two companies represented
around 20 % of total exports of CTVs from Korea
during the investigation period.

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Official Journal of the European Communities

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It was decided that the most reasonable facts avail-
able were those established in the investigation.
Therefore the highest weighted average dumping
margin found for a single representative exported
model was considered to be the most appropriate
basis for applying Article 18(1) of the basic Regula-
tion in this context.

This approach was considered necessary in order to
avoid creating a bonus for non-cooperation and an
opportunity for circumvention. In addition, there is
no reason to believe that any non-cooperating
producer/exporter
their
CTVs at prices which would be higher than the
export price charged for this reference model.

in Korea would export

the dumping margin (expressed as

a
Thus,
percentage
free-at-Community-frontier
price), established for Korean exporters other than
the two mentioned above is 21,2 %.

the

of

decreased from 5,2 % in 1991 to 1,6 % in the
investigation period.

Imports of CTVs originating in the PRC decreased
from around 666 000 units in 1991 to around
264 000 units in the investigation period. The
resulting share of
the Community market of
imports from the PRC decreased from 2,6 % in
1991 to 1,1 % in the investigation period.

The decrease in imports of CTVs from Korea and
the PRC should be seen in the light of the ex-
istence of anti-dumping measures applicable to
these imports.

2. Prices of the dumped imports

(a) Korea

(b) PRC

(45)

The Commission analysed whether
Korean CTVs had undercut
Community producers.

imports of
the

the prices of

(42)

In accordance with Article 2(11) of the basic Regu-
lation,
the dumping margin was calculated by
comparing the weighted average normal value
‘FOB port Singapore' of each model selected with
the weighted average export price ‘FOB Chinese
port', based on the information obtained from
Eurostat and duly adjusted at the same level of
trade.

the

existence

comparison

The
of
revealed
dumping, the dumping margin corresponding to
the amount by which the normal value for each
model selected exceeded the export price. The
weighted average dumping margin of all models
considered, expressed as a percentage of the actual
export price free at Community frontier, amounted
to 44,6 %.

E. INJURY

1. Community

consumption,

volume

and

market share of the dumped imports

(43) Community

consumption in units decreased
between 1991 and 1992, from around 25,9 million
to around 23 million. From 1992 to the invest-
igation period consumption has remained stable at
a level of around 23 million units.

(46) Concerning the two cooperating Korean exporters/
in view of the de minimis dumping
producers,
margin found, it has not been deemed necessary to
examine price undercutting.

(47)

For the other Korean exporters/producers, price
undercutting has been examined on the basis of
Article 18(1) of
the basic Regulation. The facts
available used correspond to the verified informa-
tion from the two cooperating Korean exporters/
producers.

In order to make a model comparison, the exported
CTVs were — as in the anti-dumping proceeding
leading to the
adoption of Regulation (EC)
No 710/95 — categorised according to those
features in a CTV considered to have the highest
impact on the cost of the manufacture and price of
a CTV, that is, the screen size, the audio output
(mono or stereo), the type of tube (conventional or
flat screen) and the availability of teletext.

The weighted average undercutting margins as
calculated on a model basis, expressed as a
percentage of
the Community producers prices
ranged from 7 to 47 %, being 24 % on average,
notwithstanding the existence of anti-dumping
duties.

(b) PRC

(44)

Between 1991 and the investigation period imports
of CTVs originating in Korea decreased from
around 1 355 000 units to around 357 000 units in
the investigation period. The resulting share of the
from Korea
Community market of

imports

(48)

For the examination of price undercutting, in view
of the lack of cooperation from Chinese producers
and following Article 18 of the basic Regulation,
export prices used were those provided by Eurostat.
In order to allow a comparison in these circum-
categorised
exported CTVs were
stances,

the

L 324/8

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Official Journal of the European Communities

2. 12. 98

according to their screen size, which is the only
feature according to which CTV imports are classi-
fied by Eurostat. The resulting average export
prices per category, adjusted to duty paid, including
the applicable anti-dumping duty, were compared
with the corresponding average Community indus-
try’s prices on the Community market.

The weighted average undercutting margins,
the Community
expressed as a percentage of
producers prices ranged from 7,9 to 58,6 %, being
45,7 % on average.

3. Situation of the Community industry

(49)

the Council

in Regulation (EC)
It should be recalled that
No 710/95,
the
concluded that
Community industry had suffered material injury.
This conclusion was reached on the basis of data
pertaining largely to the same period as the one
applicable for the injury analysis in the present
review.

(a) Production

(50)

the Community

The production of
industry
decreased from 8,9 million units sold in 1991 to
7,52 million units in the investigation period, a
decrease of 15 %.

(b) Sales and market share

(51)

The sales turnover of
the Community industry
decreased from around ECU 2 800 million in 1991
to around ECU 2 300 million in the investigation
period, i.e. a decrease of 17 %.

sales

sales

the
volume,
of CTVs manufactured by

in the
Concerning
Community
the
Community industry decreased from 7,2 million
units in 1991 to 6,6 million units in the invest-
igation period, i.e. by 6 %. Although production
fell,
share
the Community industry’s market
increased from around 28 % in 1991 to around
30,5 % in 1992, as a result of the contraction of the
consumption, but decreased between 1992 and the
investigation period from around 30,4 % to around
28,9 % in the investigation period, a period during
which Community consumption remained stable.

(c) Profitability

(52) During the period considered,

the Community
industry has suffered losses, which, as a percentage
of turnover, improved from a loss of 5,3 % in 1991
to a loss of 3,8 % in 1992. Profitability fell to a loss

of 6,7 % in 1993 and slightly improved to a loss of
5,3 % during the investigation period.

(d) Employment

(53)

Employment of
the Community industry has
suffered a decrease from 20 015 in 1991 to 11 223
in the investigation period, a decrease of 43 %.

During the same period, a Community manufac-
turer of CTVs closed down its manufacturing facil-
ities. In view of the closure of these facilities, this
Community manufacturer was unable to cooperate
in the investigation.

4. Conclusion

that

(54) An analysis of the abovementioned injury factors
the Community
shows
the situation of
industry has not improved between 1991 and the
investigation
the
Community industry is still in a very weak posi-
tion.

period. On

contrary,

the

F. LIKELY EFFECT OF THE REMOVAL OF THE

ANTI-DUMPING DUTIES

(55)

The possible effects of the removal of the anti-
dumping duties currently applicable to Korea and
to the PRC were examined. Pursuant to Article
11(2) and (3) of the basic Regulation, the following
factors have been given particular consideration:

— whether

the circumstances with regard to
dumping and injury have changed significantly
since the last investigation,

— the effectiveness of the existing measures, and

— the likelihood of continuation or recurrence of

dumping and injury.

(a) Change

in circumstances with regard to

dumping and injury

(56)

The CTV market is characterised by the maturity of
its standardisation and considerable
the product,
transparency. Traders, dealers and consumers are
therefore highly price sensitive. Price undercutting
by one market participant, even by a relatively
small amount and/or with regard to a limited
volume of sales can therefore have considerable
impact on the price behaviour of
the other
economic operators with a resulting general down-
ward trend in prices.

2. 12. 98

EN

Official Journal of the European Communities

L 324/9

the dumping margins

(57) As to a change in circumstances with regard to
dumping,
found have
increased in each new investigation carried out.
The first investigation concerning SCTVs origin-
ating in Korea, which was concluded in 1990,
resulted in dumping margins ranging from 10,3 to
19,6 %; the first investigation concerning SCTVs
originating in the PRC and concluded in 1991
resulted in dumping margins between 7,5 % to
15,3 %. The dumping margins established for CTV
exporters/producers in the investigation concluded
in 1995 ranged between 16,8 % and 18,8 % for
Korea and amounted to 25,6 % for the PRC. The
present
investigation found an even higher
dumping margin of 21 % for Korea (with the
exception of the two Korean exporters/producers
with a de minimis margin) and 44,6 % for the
PRC.

(58) Concerning a change in circumstances with respect
to injury, the investigation has shown that signi-
ficant losses have been suffered by the Commun-
ity industry between 1991 and the investigation
period.

At
the same time and notwithstanding the ex-
istence of anti-dumping duties, substantial price
undercutting by Korean and Chinese exports has
taken place which, due to the particular character-
istics of the CTV market, contributed to the weak
situation of the Community industry.

only as from October 1994, i.e. covering only the
latter part of the investigation period used in this
review.

(61)

Therefore, any benefit to the Community industry
of the anti-dumping measures imposed by Regula-
tion (EC) No 710/95 cannot have been fully
reflected in the economic situation analysed above
since it relates mostly to a period when these meas-
ures were not yet in place. Only a limited propor-
tion of total imports of CTVs from Korea and the
PRC were effectively covered by the Regulations
presently under review.

(62) Moreover, the following should be noted. Between
1991 and the investigation period, total imports of
CTVs from all origins to the Community decreased
by 52 %, i.e. from around 8,5 million units in 1991
to 4,1 million units in the investigation period.
tendency coincides with an increase in
This
the manufacturing
installed in the
capacity
Community by companies related to exporters/
producers
in third countries, notably Korea.
Indeed, during the same time period, production in
the Community by companies related to exporters/
producers in Korea increased from around 300 000
units in 1991 to around 1 238 000 units in the
investigation period, i.e. by more than 300 %. The
increase in production by companies related to
exporters/producers in Japan amounted to around
from around 5 190 000 units in 1991 to
16 %,
around 6 039 000 units in the investigation period.

(59)

It is concluded that the current investigations have
shown that dumping and injury have continued to
take place during the investigation period, within
the meaning of Article 11(2) of the basic Regula-
tion.

(63)

Despite the low market share of the Korean and
the Chinese exports, it should be noted that even
in a new investigation (as opposed to the present
review investigation) they would not be considered
negligible, neither pursuant to Article 5(7) of the
basic Regulation, nor pursuant to Article 5(8) of the
WTO Anti-dumping Agreement.

(b) Effectiveness of the measures under review

(60) During the investigation period, around 72 % of
total exports of Korean CTVs and around 80 % of
total exports of Chinese CTVs were large-screen
CTVs. These were subjected to anti-dumping duties

in place,

The decrease in imports and the corresponding
increase of Community production by companies
related to exporters/producers in third countries
appears partly to be due to the existence of anti-
dumping measures
especially those
imposed on large-screen CTVs in September 1994
by Commission Regulation (EC) No 2376/94 (1).
Indeed, between 1993 and 1994, production of
CTVs in the Community by companies related to
exporters/producers
increased from
around 400 000 units to around 1 200 000 units.
Should anti-dumping measures be repealed or
allowed to lapse, there is a risk that imports at
dumped prices would increase,
thereby further
injuring the Community industry.

in Korea

(c) Likelihood of continuation of dumping and

injury

(64) Concerning Korean exporters/producers other than
the two with de minimis dumping margins as well
as the Chinese exporters/producers, the dumping
investigation are
margins found in the present
higher than those found in previous investigations.

(1) OJ L 255, 1. 10. 1994, p. 50.

L 324/10

EN

Official Journal of the European Communities

2. 12. 98

it

is concluded that

in the event of
Therefore,
reduction or repeal of the current anti-dumping
duties, Chinese and Korean exports of CTVs to the
Community will continue to be made at consider-
ably dumped prices which significantly undercut
those of the Community industry.

(65) Moreover, according to information available, the
production capacity for CTVs in the PRC has
increased during the period under consideration,
while domestic consumption has not been able to
absorb production. It is therefore considered most
likely that, should measures be repealed or allowed
to lapse, dumped exports to the Community and to
other third countries of Chinese CTVs will increase
significantly.

(66) Concerning the likelihood of a continuation of
injury and a recurrence of further injury caused by
the dumped imports, account should be taken of
the particular characteristics of the CTV market (i.e.
the maturity of the product and price sensitivity of
the market), the substantial undercutting margins
found and the continuous price depression exerted
by Chinese and Korean imports. In this context
and despite the low Chinese and Korean market
share, it is considered that without measures the
detrimental impact of the imports in question on
the situation of the Community industry will not
only continue but even increase.

(67)

the situation of

Indeed, taking account of the further deterioration
of
the Community industry
between 1991 and the investigation period, a
period when anti-dumping measures were in place,
it is considered likely that without anti-dumping
measures,
imports from the countries concerned
will increase, negatively affecting the profitability
of the Community industry and causing a further
decrease in its employment, and thereby material
injury.

(68) However, with respect to the two Korean exporters/
producers with de minimis dumping margins, a
comparison of the normal values established in the
previous investigations with those established in
the current investigation shows that normal values
have decreased. There are no indications that this
trend in the development of normal values will
change in the foreseeable future. In this respect it
should be noted that the two cooperating Korean
exporters/producers have substantially invested in
the CTV sector in the Community in the period

under consideration and supply the Community
market mainly with their Community production.
These investments represent an amount of around
ECU 400 million, including investments in new
manufacturing plants and the manufacturing of
sub-components. The total volume of imports into
the Community of the product concerned from the
two cooperating Korean exporters/producers was,
therefore, fairly low. Due to the substantial invest-
ments made, it is unlikely that, in the absence of
anti-dumping measures, this would change to any
significant degree and it is therefore also unlikely
that the present structure of exports, including the
pricing policy, will change to any considerable
extent. In these circumstances, it can be concluded
that the repeal of the anti-dumping measures with
respect to the two cooperating Korean exporters/
producers with de minimis dumping margins
would not be likely to result in a recurrence of
dumping above a de minimis level.

(d) Conclusion

(69)

In view of the above, it is concluded that should
anti-dumping measures on CTVs originating in
Korea and the PRC be allowed to expire or be
repealed, this will lead to a recurrence or continua-
tion of material injury.

G. COMMUNITY INTEREST

(70) No arguments concerning Community interest
aspects were put forward by any of the interested
parties (importers, traders, consumer organisations)
in the present investigation.

(71)

In the course of the last investigation concerning
CTVs the Council concluded that no compelling
reasons existed not to take anti-dumping measures,
since it was concluded that unless remedial action
was taken, the existence of the Community produc-
tion of CTVs was at risk, with the consequent risk
of negative effects on the upstream and down-
stream sectors. Furthermore,
impact on
consumers was considered to be very limited, since
anti-dumping measures would not
the
range of products or price competition between
brands, in view of the numerous competitors in the
Community market. Any negative impact on
importers of CTVs was considered to be limited. In
this respect, the Commission has not found any

restrict

the

2. 12. 98

EN

Official Journal of the European Communities

L 324/11

Community interest aspect which invalidates the
findings with regard to Community
interest
reached in Regulation (EC) No 710/95. Therefore,
it is considered that the facts, figures and argu-
ments given in that Regulation are still applicable
and that no compelling reasons can be seen why
the existing anti-dumping measures
should be
repealed or allowed to lapse on grounds of
Community interest.

H. LEVEL OF THE DUTY

(72) Concerning the two cooperating Korean exporters/
producers,
in view of the de minimis dumping
found and the lack of likelihood of recurrence/
continuation of dumping, it is proposed that meas-
ures be repealed and be allowed to expire respect-
ively.

(73) With regard to Korean and Chinese exporters/
producers which either had no exports during the
investigation period or which did not cooperate in
the investigation, measures in the form of an ad
valorem anti-dumping duty should be maintained.
This approach is considered necessary in view of
the high level of non-cooperation found for Korea.

Since the amount of the anti-dumping duty is not
to exceed the margin of dumping established but
should be less than the margin if such lesser duty
would be adequate to remove the injury to the
Community industry, the necessary duty based on
an injury elimination level has also been calculated.

The difference expressed on a cif community-fron-
tier basis resulted in an injury margin of 15,1 %.

(78)

(79)

(80)

Since the injury margin calculated is lower than the
dumping margin, and according to Article 9(4) of
the basic Regulation, the anti-dumping duty for
such Korean producers/exporters calculated on the
free-at-Community-frontier
basis of
price, before duty should amount to 15,1 %.

the cif net,

Regarding the PRC, a comparison was made
between the Community’s weighted average cost of
production plus a reasonable profit margin and the
average Chinese export prices at the Community-
frontier level for each one of the CN codes used for
the dumping margin. The
the calculation of
resulting difference between the injury elimination
level and Chinese export prices being higher than
the dumping margin, the latter, i.e. 44,6 % should
apply, in accordance with Article 9(4) of the basic
Regulation.

Since Regulation (EC) No 710/95 confirmed that
all CTVs, whether SCTVs or large-screen CTVs are
one product, the anti-dumping measures imposed
by Regulation (EEC) No 2900/91 and Regulation
(EEC) No 2093/91 on imports of SCTVs origin-
ating in Korea and in the PRC respectively should
be allowed to lapse. The anti-dumping measures
imposed on large-screen CTVs originating in
Korea and the PRC by Regulation (EC) No 710/95
should be amended to cover all CTVs, SCTVs and
large-screen CTVs.

It was considered that the injury elimination level
should allow the Community industry to regain a
non-injurious situation, covering its cost of produc-
tion and obtaining a reasonable return on sales.

(81)

For this purpose, the Commission’s services took
into account the Community industry’s weighted
average cost of production and a reasonable return
on sales. As far as the latter is concerned, based on
normal market conditions, the industry’s ongoing
long-term investment requirements and reflecting
the approach taken in Regulation (EC) No 710/95,
a return on sales of 10 % was considered reason-
able.

For such Korean exporters/producers, the price of
the dumped model used for the calculation of the
residual dumping margin was compared with the
cost of production of comparable models of the
Community producers investigated to which the
abovementioned return on sales of 10 % was
added.

In view of the complexity of a number of aspects of
this case, such as the great diversity of models,
significant delays were incurred in concluding the
review investigations. The original anti-dumping
duties on imports of SCTVs and large-screen CTVs
from Korea and the PRC remained in force during
this entire period. In the light of the delay in
completing the review, and furthermore, in view of
the new product definition of CTVs resulting from
Regulation (EC) No 710/95, which requires the
assimilation of the duties under review to the duties
imposed by Regulation (EC) No 710/95,
is
considered appropriate to treat imports of all CTVs
from Korea and the PRC in the same way as
imports of CTVs from Malaysia, Singapore and
exceptional
Thailand. Consequently,
circumstances,
the
renewed measures concerning imports of CTVs
from Korea and the PRC should be limited, so that
the duties
their expiry coincides with that of
imposed on imports of CTVs from Malaysia, Singa-
pore and Thailand, i.e. 2 April 2000, without preju-
dice to the applicable provisions on reviews,

the period of operation of

in these

it

(74)

(75)

(76)

(77)

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Official Journal of the European Communities

2. 12. 98

HAS ADOPTED THIS REGULATION:

Regulation (EC) No 710/95 is hereby amended as follows:

1. Article 1 shall be replaced by the following:

Article 1

‘Article 1

1. A definitive anti-dumping duty is hereby imposed on imports of colour television
receivers with a diagonal screen size of more than 15,5 cm, whether or not combined in
the same housing with a radio broadcast receiver and/or clock, falling within CN codes
ex 8528 12 52 (Taric code: ex 8528 12 52*10), 8528 12 54, 8528 12 56, 8528 12 58, ex
8528 12 62 (Taric code: 8528 12 62*10 and 8528 12 62*91) and 8528 12 66, originating
in Malaysia, Singapore, Thailand, the People’s Republic of China and the Republic of
Korea.

The rate of the duty applicable to the net, free-at-Community-frontier price, before

2.
duty shall be as follows:

Malaysia

People’s Republic of China

Republic of Korea

Singapore

Thailand

Rate
of duty

23,4 %

44,6 %

15,1 %

23,6 %

29,8 %

Taric
additional
code

8801

—

8807

8812

8816

with the exception of imports which are manufactured by the following companies
which shall be subject to the following rate of the duty:

Rate of duty

Taric additional
code

(a) CTVs originating in Malaysia manufactured by:

— Makonka Electronics SDN BHD, Ehsan, Malaysia
— Orion Electric SDN BHD, Melaka, Malaysia
— Technol Silver (M) SDN BHD, Malaysia
— LGMitr Co. Ltd, Samutsakorn, Thailand
— World Electric (Thailand) Ltd, Chonburi, Thailand

(b) CTVs originating in the Republic of Korea manufactured

by:

— LG Electronics Inc., Seoul, Republic of Korea
— Samsung Electronics Co., Seoul, Republic of Korea

(c) CTVs originating in Singapore manufactured by:

— Funai Electric (Singapore) Pte Ltd, Singapore
— Hitachi Consumer Products (S.) Pte Ltd, Singapore
— Philips Singapore Pte Ltd, Singapore
— Sanyo Electronics (Singapore) Pte Ltd, Singapore
— Thomson Television Singapore Pte Ltd, Singapore

(d) CTVs originating in Thailand manufactured by:

2,3 %
10,1 %
7,5 %
19,6 %
13,5 %

0,0 %
0,0 %

0,0 %
0,0 %
2,8 %
4,3 %
2,6 %

— Teletech (Thailand) Ltd, Chonburi, Thailand
— Thai Samsung Electronics Co. Ltd, Chonburi, Thailand
— Thomson Television (Thailand) Co. Ltd, Pathumthani,

29,8 %
12,1 %
3,0 %

Thailand

8796
8797
8798
8799
8800

8456
8456

8808
8808
8809
8810
8811

8813
8814
8815

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Official Journal of the European Communities

L 324/13

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

2. the following subparagraph shall be added to Article 3:

‘It shall expire on 2 April 2000, save that should any review of the measures adopted by
this Regulation be pending on that date, it shall remain in force until that review is
concluded.'

This Regulation shall enter into force on the day following its publication in the Official
Journal of the European Communities.

Article 2

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

Done at Brussels, 27 November 1998.

For the Council

The President

C. EINEM