Council Regulation (EC) No 194/1999 of 25 January 1999 imposing definitive anti-dumping duties on imports of hardboard originating in Bulgaria, Estonia, Latvia, Lithuania, Poland and Russia and definitively collecting the provisional duties imposed
Date: 1999-01-25
Institutions: Council of the European Union
Subjects: Central and Eastern Europe, anti-dumping duty, building slab, import, originating product

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Official Journal of the European Communities

29. 1. 1999

COUNCIL REGULATION (EC) No 194/1999

of 25 January 1999

imposing definitive anti-dumping duties on imports of hardboard originating in
Bulgaria, Estonia, Latvia, Lithuania, Poland and Russia and definitively collecting
the provisional duties imposed

THE COUNCIL OF THE EUROPEAN UNION,

— Industria de Fibras de Madeira, Portugal,

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
not members
Community (1), and in particular Article 9(4) thereof,

of

Having regard to the proposal submitted by the Commis-
sion after consulting the Advisory Committee,

Whereas:

A. GENERAL INFORMATION

1. Provisional measures

Provisional anti-dumping measures were imposed
in the present proceeding on 6 August 1998 by
Regulation (EC) No 1742/98 (2) (hereinafter referred
to as the ‘Provisional Regulation'). Undertakings
were offered and accepted from the cooperating
exporting producers in all the countries concerned
except Russia.

2. Subsequent procedure

Following the imposition of the provisional meas-
importers and
ures, certain exporting producers,
concerned
Community users of
submitted comments in writing. Those parties who
so requested were granted an opportunity to be
heard.

the product

(1)

(2)

(3)

Since the publication of the Provisional Regulation,
investigations were carried out at the premises of
the following companies which are users of the
product concerned in the manufacture of doors:

(5)

— Svedex BV, Netherlands,
— Swedoor, a division of Nobia Nordisk Byggin-
teri(cid:148)r AB, Sweden (two production plants),

— Righini SA, France,
— Huet SA, France,
— Theuma Deurenindustrie NV, Belgium.

A non-complainant producer of eucalyptus hard-
board was also visited, namely:

(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 218, 6. 8. 1998, p. 16.

as was the following unrelated importer of hard-
board:

— Firma Christian Kr(cid:148)ger GmbH & Co. KG,

Germany.

B. PRODUCT UNDER CONSIDERATION AND

LIKE PRODUCT

1. Product under consideration

(4)

The product under consideration in this anti-
dumping proceeding is hardboard. Hardboard is
defined as fibreboard of wood or other ligneous
materials, whether or not bonded with resins or
and with a density
other organic substances
exceeding 0.8 g/cm3, currently classifiable under
CN codes ex 4411 11 00 and ex 4411 19 00.

Hardboard is exclusively obtained from a ‘wet
(as opposed to dry-process
production process'
fibreboards as described below) and normally has a
density of 800 to 1050 kg/m3 and is made in thick-
nesses between 1,8 to 6,0 mm.

Hardboard is typically used in the manufacture of
furniture,
in the construction and automotive
industries, for door skins and for packaging, espe-
cially fruit and vegetable packaging.

2.

‘Thin' dry-process fibreboards

the provisional anti-
After
the imposition of
dumping measures, a number of
importers and
users continued to argue for an extension to the
product scope of the proceeding. In particular, they
argued that the so-called thin forms (less than 6
mm thickness) of dry-process fibreboards such as
medium- and high-density fibreboard (thin MDF
and HDF) and hardboard have essentially the same
end uses, and therefore together form a single
product. It was therefore alleged that the scope of
the analysis of dumping, injury and Community
interest should also include all these products.

(6)

On the basis of the information submitted up to
the provisional stage, a preliminary assessment of
the extent to which the end uses of hardboard and
thin dry-process fibreboards overlap was made.

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Based on the information submitted since the
Provisional Regulation a definitive assessment has
been made and it has become clear that, theoret-
ically, such overlap is substantial and that only for
some market segments are the two products not at
all interchangeable.

(7)

However, similarity of end uses does not alone
like product. The
determine the question of
conclusions of the provisional
investigation that
hardboard and thin dry-process fibreboards were
not a single product were based on differences of
physical and chemical characteristics of the two
products. Further
issues
involved has allowed the following refinements of
the analysis:

investigation of

the

— it is confirmed that the thin HDF variant of
dry-process fibreboards can be produced in
densities comparable to or higher than the
density of hardboard. With its density defined
as being above 800 kg/m3, it is thin HDF which
can be considered the closest to hardboard,

— however, the average prices for thin HDF were
higher than those for thin MDF (10 to 15 % on
average) and for most hardboard of equivalent
board thicknesses under 6 mm, so that over the
period investigated it was mainly thin MDF
(density lower than 800 kg/m3) which competed
on the market with hardboard over a large part
of its final uses, particularly in the furniture
sector, in part of the packaging sector, in the
picture-frames sector and in a part of the doors
sector,

fibreboards

— it was also pointed out that new, zero-emission,
thin dry-process fibreboards are in production,
i.e. thin dry-process fibreboards containing no
formaldehyde. This development allows thin
dry-process
to compete in the
market of food packaging from which it has
hitherto been excluded because of its formalde-
these zero-emission
hyde content. However,
products are a very recent
innovation, and,
although it is conceivable that thin dry-process
fibreboards could in the future be used in the
area of food packaging, their higher price would
probably preclude this at the present time. As
these developments
sub-
sequent to the investigation period, they could
not be investigated,

relate to periods

(8)

(9)

(10)

rather,

the two products;

— the fact that thin dry-process fibreboards and
hardboard share a number of end uses does not
imply that
the market considers them as a
single product. Indeed, most operators in the
sectors involved have confirmed that, in prac-
tice, they do not use the different board types
indiscriminately because of the different phys-
ical characteristics and technical performances
of
they choose
between them according to which best suits
their technical requirements. As an example,
thin MDF has an advantage when it has to be
laminated, due to its more porous and matte
surface. Moreover,
structure is
smooth and not layered like hardboard, and it
does not have the tendency to split when
submitted to tension. As a consequence, thin
MDF is generally preferred to hardboard for the
manufacture of laminated doors and furniture
elements. On the other hand, hardboard gener-
ally has a distinct advantage in those uses where
density and/or suppleness of
the panel are
required, such as in lacquered and pre-painted
is
doors or automobile parts, or where it
thought that the resins contained in thin dry-
process fibreboards would have, as explained
above, a possible impact on health, such as in
fruit and vegetable packaging.

internal

its

In conclusion, the definitive analysis confirms the
provisional findings that hardboard and thin dry-
process fibreboards, although they are theoretically
interchangeable for many end uses, are not,
in
practice, a single product because of the differences
in their physical and chemical characteristics.

Nevertheless, although thin dry-process fibreboards
do not form a single product with hardboard, it was
claimed that the extent of the overlap in their
end-uses has
the
analysis of the causes of any injury suffered by the
Community industry. This issue is addressed below
under causation.

implications

important

for

3. Plywood and chipboard

Submissions were received clarifying the arguments
presented at the provisional stage of the investiga-
tion that plywood and chipboard panels were also
interchangeable with hardboard in many of their
applications. However, for the same reasons as were
outlined for thin dry-process fibreboards above,
theoretical similarity of end uses does not alone
product.
determine

question

single

the

of

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Since the physical and chemical characteristics of
hardboard are different to chipboard and plywood
panels,
it cannot be considered to be a single
product with them.

The provisional findings are therefore confirmed.

From these visits, the following became clear:

(a) The technical properties and uses of eucalyptus

hardboard

4. Like product

(11)

The further investigation confirmed that there were
no differences in the basic characteristics and uses
of the hardboard imported into the Community
from the countries concerned and the hardboard
produced by the Community industry and sold on
the Community market. The same is true with
regard to hardboard produced and sold on the
domestic markets of Brazil, Bulgaria, Estonia,
Latvia, Lithuania and Poland (the last mentioned
served also as an analogue country for imports from
Russia). It was therefore concluded that both the
hardboard produced and sold by the Community
industry on the Community market and the hard-
board produced and sold on the domestic markets
of Brazil, Bulgaria, Estonia, Latvia, Lithuania and
Poland were, within the meaning of Article 1(4) of
Regulation (EC) No 384/96 (hereinafter referred to
as ‘the Basic Regulation'), alike to the hardboard
imported into the Community from the seven
countries subject to investigation.

(12) However, the Brazilian exporting producers, as well
as a number of users of hardboard, in particular
manufacturers of doorskins, repeated their claims
made at the provisional stage that Brazilian euca-
lyptus hardboard is not a like product with the
product produced by the Community industry and
should be excluded from the scope of the investiga-
tion.

(13) Among the exporting producers concerned by this
investigation, only the Brazilian exporting produ-
cers supply hardboard made from eucalyptus to the
Community market. There are also two producers
of eucalyptus hardboard in the Community, both
situated in the Iberian peninsula, which did not
participate in the complaint which led to the initia-
tion of this proceeding.

(14)

These claims in respect of eucalyptus hardboard
have been extensively investigated. Following the
imposition of provisional measures, a number of
door manufacturers across the Community were
visited.
non-complainant
Community producer of eucalyptus hardboard in
Portugal was visited. These visits were aimed at
clarifying the issues concerning the inclusion of
Brazilian hardboard within the scope of
this
proceeding.

addition,

one

In

Brazilian

technical

exporting

submissions were received
(15) Numerous
from the
producers,
Community door manufacturers, and the complai-
nant concerning the properties of eucalyptus hard-
board. The exporting producers and door manufac-
turers argue that eucalyptus hardboard has certain
unique properties which set it apart from any other
hardboard types, whether made from softwood or
hardwood tree species other than eucalyptus. They
claim further that no viable alternative product is
produced by the Community industry. The door
manufacturers in particular emphasise that
the
Community industry produces no eucalyptus hard-
board for doorskins; indeed they point out that the
only Community-based producer of eucalyptus
hardboard which does make doorskin-quality
boards, and is based in Portugal, is not one of the
complainants.

(16)

It was found that hardboard made from eucalyptus
wood has a number of
technical characteristics
which make it particularly well-suited for doorskins
for high quality, finished doors. First, its especially
fibres give the finished hardboard a very
short
regular appearance, high density and stronger
tensile properties than non-eucalyptus hardboard.
Second, the eucalyptus tree has hardly any bark, a
factor which ensures that blemishes in the pressed
board are minimal.

(17) However,

it should be borne in mind that the
eucalyptus tree is not the only species to have short
fibres. The complainants have submitted that there
are 40 other species of tree growing in Western
Europe which have fibres of about the same length
as eucalyptus, and in some cases even shorter.

(18)

It should also be noted that
the high quality
required by the door manufacturers is not limited
to the type of wood of which the hardboard is
made. Some of the characteristics required, such as
a constant and reliable thickness of the board they
use, a high density, a good resistance to high
temperatures (doors are assembled at above 100 (cid:190)C)
and humidity and the absence of surface defects are
not necessarily linked to eucalyptus, but can also be
obtained with other woods, with a
strictly
controlled production process. It can also be added
that, as far as the suitability for lacquering is
it was found that some hardboards
concerned,
made with wood other than eucalyptus can be
lacquered with acceptable results, depending on the
technique and the quantity of painting material

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(19)

(20)

(21)

used. The advantage of eucalyptus and in general of
hardwood hardboard is mainly in the smaller quan-
tities of paint needed to achieve a smooth result.

Furthermore, the analysis of the door manufactur-
ers’ activities also confirmed that for unfinished
doors, which are primed or pre-painted in white
but which require finishing by the final customer,
doorskins made with different types of wood are
used. It was also found that some door producers
used Community-produced hardboard, not made
with eucalyptus wood, to make lacquered doors.

It was also found that during the investigation
period, eucalyptus hardboard was also used for
certain applications in the furniture, roofing and
automobile industries and, as far as offcuts of hard-
board sheets are concerned, for fruit and vegetable
containers.

(b) Conclusion on eucalyptus hardboard as a like

product

The examination of the interested parties’ submis-
sions confirms that the exceptional properties of
eucalyptus hardboard do not technically rule out its
use in those areas in which other hardboards are
also used; indeed, the fact that it is not widely used
outside the doorskin sector is simply a reflection of
the relatively higher price at which this product is
sold on the market, in comparison with other hard-
wood and softwood hardboards.

therefore,

Although,
the eucalyptus hardboard
produced and exported by Brazilian exporting
producers has certain special characteristics, these
are not sufficient to lead to the conclusion that it is
not a product alike to the hardboard produced by
the Community industry with which it shares the
same basic physical characteristics and uses within
the meaning of Article 1(4) of the Basic Regulation.

C. DUMPING

1. Specific issues raised with regard to the
establishment of dumping for each of the
countries concerned

The dumping margins expressed as a percentage of
the cif
the Community border
established for the Bulgarian exporting producers
remain unchanged, i.e.:

import price at

— Fazerles AD:

— Lessoplast AD:

7,1 %

7,2 %

— non-cooperating exporting producers: 7,2 %.

(c) ESTONIA

(24)

The Estonian exporting producer made no
comments following disclosure and the publication
of the Provisional Regulation.

The dumping margins expressed as a percentage of
the Community border
the cif
established for the Estonian exporting producers
remain unchanged, i.e.:

import price at

— AS Repo Vabrikud:

6,0 %

— non-cooperating exporting producers: 6,0 %.

(d) LATVIA

G e n e r a l

(i) Product classification

(25)

some of

the classification of

Following the adoption of provisional measures,
the Latvian exporting producer requested a revision
the company
of
product codes into product control numbers. The
claim was based on the grounds
some
company product codes, which were originally
incorrectly reported by the company as referring to
standard products, should be considered as cut-to-
size products.

that

This request has been granted, as the company
product codes in question did indeed not cover
standard dimensions.

(a) BRAZIL

N o r m a l v a l u e

(22)

In view of the findings on causation in recitals 53
to 56, it is not considered necessary to set out any
findings in respect of dumping of imports of the
product concerned from Brazil.

(b) BULGARIA

(23)

The Bulgarian exporting producers made no
comments following disclosure and the publication
of the Provisional Regulation.

(i) Profit margin in constructed normal values

The Latvian exporting producer claimed that when
constructing normal values, the profit earned on
sales in the ordinary course of trade should be
expressed as a percentage of the total domestic
turnover of the like product of the company —
including the turnover of non-profitable sales —
instead of the turnover of the sales in the ordinary
course of trade only. The approach adopted by the
Commission in the Provisional Regulation inflates,

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29. 1. 1999

according to the producer, the profit margin. The
Latvian producer furthermore asserted that there
was a discrepancy between the methods used by
the Commission to calculate, on the one hand, the
profit margins by excluding non-profitable transac-
tions as well as the dumping amounts by excluding
negative dumping and, on the other hand,
the
calculation of the dumping margins expressed as a
percentage of the total cif value.

This claim had to be rejected. The methods used
by the Commission to construct normal values and
to determine which sales had been made in the
ordinary course of trade are described in recitals 29
and 31 of the Provisional Regulation and are in
conformity with the rules set out in Articles 2(4)
and (6) of the Basic Regulation. In particular, it
should be added that: first, Article 2(6) of the Basic
Regulation clearly specifies that ‘the amounts (...)
for profits shall be based on actual data pertaining
to production and sales in the ordinary course of
trade, of the like product . . .'; second, the aim is to
establish a profit margin that could normally be
attained for
sales of a given product on the
domestic market; third, Article 2(4) of the Basic
Regulation provides as to when loss-making sales
of a given product may be treated as being in the
ordinary course of trade, i.e. if the quantity sold
with a loss is below 20 % of the total quantity sold
of that product. In that case, only the total turnover
of a product including loss-making transactions is
the basis of the profit margin calculation.

C o m p a r i s o n b e t w e e n n o r m a l
e x p o r t p r i c e

v a l u e

a n d

(27)

(i) Allowance for currency conversion

The Latvian exporting producer had claimed an
allowance for currency conversion based on a
comparison of the amount in lats the company
would have obtained using the exchange rate
applicable at the time of the conclusion of the
respective contracts with their customers and the
amount actually obtained. This claim is based on
the assumption that the date of contract is the date
of sale. In the Provisional Regulation, the Commis-
sion had rejected this claim on the basis that the
contracts submitted did not reflect the material
terms of sale and that the date of invoice more
appropriately established these terms.

rate variations by amending export prices. There-
fore, it is confirmed that such contracts do not
more appropriately establish the material terms of
sale as compared to invoices,
in particular with
regard to the price. The claim could not, therefore,
be accepted.

(ii) Interest rates used for credit purposes

(26) With regard to the credit cost allowance,

the
Latvian exporting producer claims that the deposit
rate instead of the credit rate should be used on the
grounds
company having sufficient
liquidity, its credit costs are limited to the interest
earnings not perceived on its bank deposit account.

that,

the

Following the practice consistently applied by the
Community institutions, it was not found appro-
priate to base the calculation of the credit cost
allowance on the deposit rate on the grounds that
these constitute opportunity costs as compared to
actual costs.

it

is noted that

In this context
the interests
customers would have to pay in case of payment
delays, as stated in the contracts submitted to the
Commission, suggest that the company determined
such interests on the basis of credit rates rather
than deposit rates.

(iii) Depreciation of the machinery of the related

domestic producer

The Latvian exporting producer claims that the
depreciation of
the related
domestic producer should have been calculated on
the basis of a ten-year depreciation period instead
of a five-year depreciation period.

the machinery of

Pursuant to Article 2(5) of the Basic Regulation,
this claim could not be accepted as the amount
used is in line with the amount declared in the
audited financial statements of the year 1997 and
the application of the 20 % depreciation amount
per year seems therefore to reasonably reflect the
depreciation costs associated with the production of
the product under consideration.

D u m p i n g

(28) On the basis of the above, the following modified
dumping margins expressed as a percentage of the
cif import price at the Community border have
been established for Latvian exporting producers:

The exporting producer reintroduced this claim,
adding that contracts could be amended. This
confirms that the company could react to exchange

— AS ‘Bolder(cid:131)ja':

4,7 %

— non-cooperating exporting producers: 4,7 %.

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(e) LITHUANIA

(29)

The Lithuanian exporting producer made no
comments following disclosure and the publication
of the Provisional Regulation.

The dumping margins expressed as a percentage of
the cif
the Community border
established for Lithuanian exporting producers
remain unchanged, i.e.:

import price at

— JSC Grigiskes:

11,4 %

— non-cooperating exporting producers: 11,4 %.

As stated in recital 27 of the Provisional Regula-
tion, it was established that only hardboard panels
with the same characteristics and the same quality
are directly comparable. This is so because the
quality of the hardboard determines to a substantial
degree its price and the suitability for certain uses.
Therefore, and since this low quality hardboard was
not exported to the Community, the request made
by the company could not be accepted.

(iv) Cost of production

(f) POLAND

N o r m a l v a l u e

(i) Profit margin in constructed normal values

(30)

The Polish exporting producers made the same
the Latvian exporting producer with
claim as
respect to the calculation of the profit margin when
constructing normal value (see recital 25).

This request has been rejected for the reasons given
in recital 25.

(ii) Allocation of selling, general and administra-

tive costs

(31) One Polish exporting producer claimed that the
turnover-based
allocation method which the
Commission has used to allocate selling, general
and administrative expenses relating to domestic
sales should be revised and instead the method
normally applied by the company and used in its
questionnaire response should be utilised. This
method was based on sales volumes in tonnes to
which conversion factors (i.e. the factors used to
convert tonnes into m2) relating to the thickness of
a given hardboard type were applied.

The request was examined and it was concluded
that the allocation method used in the question-
naire response is in line with the normal cost
accounting practice of the company. Consequently,
the allocation method for selling, general and
administrative expenses has been changed in line
with the request of the company.

(iii) Exclusion of specific transactions

(32) One Polish exporting producer questioned the
methodology employed by the Commission to
determine normal value by excluding transactions
low quality hardboard. According to this
of
company, the exclusion of these transactions causes
the artificial overstatement of sales profitability and
consequently affects their dumping margin.

to

this

producer’s

(33) One Polish exporting producer proposed a
different way of calculating the costs of cutting
standard-size hardboard into cut-to-size boards as
compared
questionnaire
response. This new cost allocation also took into
account the thickness of the panels cut and not
only the number of square metres cut. This claim
was
the cutting
machines can cut simultaneously up to 100 mm of
panels. Therefore, it was claimed, in one cutting
operation the company was able to cut a substan-
tially different number of square metres depending
on the thickness of the panels cut. Consequently,
the claim was accepted.

justified on the grounds

that

C o m p a r i s o n o f n o r m a l v a l u e a n d e x p o r t
p r i c e

(i) Start-up costs

(34) One Polish exporting producer referred to in recital
65 of the Provisional Regulation disagreed with the
Commission rejection of the start-up cost adjust-
ment to its worked hardboard operations. However,
as no new evidence was submitted by this producer,
the findings set out in recital 65 of the Provisional
Regulation are confirmed.

D u m p i n g

(35) One Polish exporting producer has put into ques-
tion the methodology used by the Commission of
calculating a single dumping margin for all hard-
board product
instead of calculating a
different dumping margin for raw hardboard and
for worked hardboard.

types

This claim could not be accepted. It is the constant
practice of the Community institutions, in accord-
ance with the provisions of Articles 1 and 2 of the
Basic Regulation, to establish a dumping margin
for the product under consideration as a whole and
not per category, type or model of the product
concerned. The reason is that for a product like

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29. 1. 1999

hardboard, which exists in a wide variety of types,
the implementation of anti-dumping measures, in
particular anti-dumping duties, on a per type basis
is from a customs point of view impractical.

D. INJURY

1. Consumption

(38)

The provisional findings are confirmed.

(36) On the basis of the above, the following modified
dumping margins expressed as a percentage of the
cif import price at the Community border duty
unpaid have been established for Polish exporting
producers:

(39)

— Ekopłyta SA:

20,6 %

— Zakłady Płyt Pils´niowych SA w Krosnie

Odrzanskim:

— Czarna Woda Zakłady Płyt

Pils´niowych:

— Alpex Karlino SA:

— Zakłady Płyt Pils´niowych SA,

Przemysl:

— Koniecpolskie Zakłady Płyt

Pils´niowych SA:

11,0 %

34,8 %

22,4 %

9,1 %

11,4 %

— non-cooperating exporting producers: 34,8 %.

the Provisional Regulation,

With regard to Bulgaria, Estonia, Latvia, Lithuania
and Poland, it was found that the overall level of
cooperation was high. As mentioned in recital 35
of
it was therefore
considered appropriate to set the dumping margin
for the non-cooperating companies in the countries
with high cooperation at the level of the highest or
the sole dumping margin established for a co-
operating company in the country in question.

(g) RUSSIA

(37) No Russian exporting

any
comments following disclosure and the publication
of the Provisional Regulation.

producer made

Normal value for Russia was calculated on the basis
of the weighted average of the normal values estab-
lished for cooperating Polish companies.

The dumping margin for Russia has been recalcu-
lated taking into account
in the
normal values established for the Polish companies
as described in recitals 30 to 33.

the changes

2. Dumped imports

(a) Cumulation

The Brazilian exporting producers reiterated the
claim that
imports into the Community from
Brazil should not be cumulated with imports from
the other countries concerned in the proceeding.
They argued that hardboard produced in Brazil and
exported to the Community does not compete with
imports
countries
concerned in that:

originating

in the

other

than the level

— the level of
its export prices is higher, on
found for the other
average,
countries concerned, as shown by the lower
provisional undercutting margin found at the
provisional stage,

— the volume and market

imports
showed, during the period under examination, a
divergent trend from that of the other countries
concerned,

share of

— it is sold to different customers, mainly produ-

cers of lacquered doors.

(40) An examination of these claims resulted in the

following findings.

Almost all the imports from Brazil were destined
for particular end uses especially the manufacture
of lacquered doors, a sector where high prices are
obtained and to which the other
countries
concerned do not sell. In fact, the users of Brazilian
hardboard considered imports from these other
sources as being wholly unsuitable for their needs,
on both technical and economic grounds.

The above findings on end use are supported by
Brazilian price levels, which are substantially above
those of other imports from the other countries
concerned. Furthermore, Brazilian import volumes
are falling while others are rising.

(41)

In the light of the above, it is not unreasonable in
this case to conclude that a cumulative assessment
of
the imports from Brazil with the effects of
imports from other sources under investigation
would be inappropriate.

The effects of imports from Brazil were therefore
examined separately.

(b) Volume and price development of the dumped

imports

(42)

The provisional findings are confirmed.

On this basis, a new single dumping margin
expressed as a percentage of the cif import price at
the Community border, duty unpaid, of 30,6 % has
been established for the Russian exporting produ-
cers.

However, in the light of the decision to analyse the
effects of imports from Brazil separately from the
effects of imports from the other countries, the
analysis of import volumes and price trends is as
follows:

29. 1. 1999

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Official Journal of the European Communities

L 22/23

Imports from Brazil

1993

1994

1995

1996

Investigation
period

Quantity (t)

Indexed

62 193

61 605

69 783

58 514

54 890

100

99

112

94

88

Value (thousand ecus)

18 117

17 724

20 767

16 772

15 715

Indexed

Market share in %

Indexed

Price per tonne

Indexed

100

6,3

100

291

100

98

5,4

86

288

99

115

6,0

95

298

102

93

5,2

82

287

98

87

4,6

73

286

98

(43)

Import volumes and market share show a significant decrease between 1995 and the
investigation period, while prices remained relatively stable throughout the period
examined.

Imports from other countries concerned

1993

1994

1995

1996

Investigation
period

Quantity (t)

Indexed

171 890

192 165

253 041

209 727

222 103

100

112

147

122

129

Value (thousand ecus)

28 707

33 919

49 103

43 461

49 112

Indexed

Market share in %

Indexed

Price per tonne

Indexed

100

17,4

100

167

100

118

16,9

97

177

106

171

21,7

125

194

116

151

18,5

107

207

124

171

18,7

108

221

132

Import volumes and market shares substantially
increased between 1993 and 1995,
fell back in
1996, and increased again in the investigation
period. Imports, both in absolute value and in
terms of market share were higher in the investiga-
tion period than at the beginning of the period
examined.

Although prices rose significantly over the period
considered for the analysis of injury, imports from
all these countries were still substantially undercut-
ting the Community industry’s prices in the inves-
tigation period.

(c) Price comparison

(44)

Following the disclosure of the provisional find-
ings, comments were made by the Brazilian

exporting producers relating to the methodology
used for the calculation of price undercutting.

that
the Brazilian

the price differential
It was pointed out
between
and
export
Community industry’s prices was mainly due to a
small part of the transactions during the investiga-
tion period, accounting for less than 1 % of the
Community production.

prices

for the purpose of

One of the Brazilian exporting producers requested
that
the comparison, where
applicable, the price paid by the first independent
customer in the Community to its related importer
be used, as such a price was at the same level of
the Community industry.
trade

as prices of

L 22/24

EN

Official Journal of the European Communities

29. 1. 1999

(45)

(46)

(47)

(48)

(49)

the margins
it was requested that
Furthermore,
found be expressed as a percentage of the total
value of
in the investigation period,
including those omitted from the comparison
where no matching models had been sold by the
Community producers.

imports

The latter request was not accepted. It is standard
practice of the Community institutions to use only
the cif value of the imports during the investigation
period for which an actual price-undercutting
analysis has been performed and, consequently, for
which matching Community-made product types
existed when determining the margins found.

control

product

the
both exporting producers

numbers
Furthermore,
provided
and
by
Community producers were carefully examined
and revised where necessary to ensure a fair
comparison. The comparison was then made at the
same level of trade between the ex works prices of
the Community producers and either cif export
prices, Community frontier duty paid, when the
sale was made directly by the exporting producers
to an independent customer, or the ex warehouse
resale prices of the related importer to the first
independent customer.

calculated by
The undercutting margin was
weighting the type-by-type average undercutting
the dumped imports
rates by the quantities of
times
the matching
Community-produced products.

average prices

the

of

The same criteria were applied to the price
comparisons for the other countries concerned.

The export transactions used for the comparison
represented at least 74 % of total exports for each
country concerned.

The revised calculations confirmed the existence of
price undercutting for all countries except Brazil,
for which no price undercutting was found. The
new levels of price undercutting are shown in the
table below:

Summary of the undercutting margins

Country

Weighted average undercutting on a
direct product type-to-type comparison

Brazil

Bulgaria

Estonia

Latvia

Lithuania

—

44 %

65 %

48 %

45 %

Country

Weighted average undercutting on a
direct product type-to-type comparison

Poland

Russia

53 %

65 %

3. Situation of the Community industry

(50)

The provisional findings are confirmed.

4. Conclusion on injury

(51)

The Polish and Latvian exporting producers ques-
tioned the provisional conclusions on injury on the
grounds that
the developments of some injury
factors, such as production, market share and sales
turnover of the Community industry were not suffi-
ciently negative to show the existence of material
injury.

These contentions were examined, but could not be
accepted. The overall analysis at the Community
level of all indicators relating to the situation of the
Community industry, in particular in the light of
the substantial deterioration of its sales prices and
of its increasing financial losses, confirms the ex-
istence of injury.

(52)

Therefore the provisional findings on injury are
confirmed.

E. CAUSATION OF INJURY

1. Effect of the dumped imports from Brazil

(53)

The Brazilian exporting producers claimed that
imports originating in Brazil could not have caused
injury for the following reasons:

— the quantities imported from Brazil decreased
by 20 % between 1995 and the investigation
period,

— the Brazilian product does not compete with
Community production since it
sold to
specialised users, namely manufacturers of
lacquered doors, table mats and the automotive
industry which need Brazilian eucalyptus hard-
board for their particular quality requirements,
and cannot replace it,
in spite of its higher
prices, with other hardboard types,

is

— Brazilian

exports

the
do
Community industry’s sales, particularly in the
abovementioned specialised sectors.

undercut

not

29. 1. 1999

EN

Official Journal of the European Communities

L 22/25

(54) As to the first claim, the decrease in the quantities
imported does not preclude that injury has been
caused in the investigation period by those imports;
indeed, the imports were still substantial and well
above the de minimis limit as provided in Article
5(7) of the Basic Regulation.

(57)

(55) As to the other claims, it was found that:

— around 68 % of the imports from Brazil during
the investigation period were destined for
in the Community, of lacquered
production,
doors. The Community lacquered door industry
has stringent quality requirements for which
Brazilian eucalyptus hardboard is particularly
well-suited. However, as pointed out at recital
18, the high quality required by the door manu-
facturers is not strictly linked to the species of
wood used, in this case eucalyptus. Brazilian
hardboard is well-suited to lacquered door
manufacture, not only because it is made with
eucalyptus wood, but also because the Brazilian
producers carry out very severe quality controls
on their exports to the Community,

lacquered doors;

— in the investigation period only very small
quantities of hardboard produced by
the
Community industry were used for the manu-
facture of
the demand was
almost completely satisfied by eucalyptus hard-
board either imported from Brazil or supplied
by the Portuguese non-complainant producer.
The door manufacturers explained their choice
on the grounds of the high quality guaranteed
by those suppliers,

— the above argument on the special end uses is
supported by the fact that there is no undercut-
ting by Brazilian exports destined for
the
manufacture of door skins; in fact their prices
are significantly above those of the Community
industry,

— the evidence, therefore, does not support the
Community producers’
claim that market
prices were depressed by Brazilian exports, and
that it is price depression which prevents them
from producing doorskins of a quality equal to
that of the Brazilian product and suitable for
the production of lacquered doors,

— as to the imports from Brazil not sold to the
lacquered
did not
segment,
undercut, on average, the prices of Community
production.

doors

they

(56)

to the

foregoing leads

The
conclusion that
Brazilian exports were not a cause of material
injury to the Community industry, and that, as a
consequence, the proceeding with respect to Brazil
should be terminated without measures.

2. Effect of the dumped imports from the
other countries subject to investigation

The volume of imports from the other countries
subject to investigation increased by 29 % between
1993 and the investigation period. Although their
prices increased, on average, by 32 % over the
same period, they still undercut substantially the
prices of the Community industry in the investiga-
tion period. As a result of this undercutting, which
the Community
ranged from 44 % to 67 %,
industry experienced a 16 % fall
in its selling
prices and a serious deterioration of its financial
situation.

The provisional findings that the dumped imports
from Bulgaria, Estonia, Latvia, Lithuania, Poland
and Russia
the
caused material
Community industry are therefore confirmed.

injury

to

3. Effect of imports from other third coun-

tries

(58) Although certain exporting producers in the coun-
tries concerned reiterated claims that injury had
been caused by the increase of imports from other
third countries, no new information was made
available in this respect which could alter the
provisional findings.

The provisional findings are therefore confirmed.

4. Competition

from non-complainant

Community producers

Some of the exporting producers concerned drew
attention to the fact that, although not undercut-
ting the Community industry’s prices in the inves-
tigation period, non-complainant Community
producers had been undercutting, on average, the
Community industry’s prices from 1993 to 1995,
and that this may have been, in those years, a cause
of injury.

It should be noted that, although lower than those
the Community industry, non-complainant
of
producers’ prices were substantially higher than the
average prices of
from the countries
imports
concerned with the exception of Brazil: the average
price of these imports was ECU 167 per tonne in
1993, while the average unit price for non-com-
plainant producers was ECU 1,02 per m2, cor-
responding to more than ECU 300 per tonne.

is
In the light of
considered unlikely that
the pricing of non-
complainant producers was a source of injury to the

these price relationships,

it

(59)

(60)

(61)

L 22/26

EN

Official Journal of the European Communities

29. 1. 1999

Community industry; in any event, such pricing
effect was considered insufficient
to break the
causal link between the dumped imports from the
six countries and the injury suffered.

5. Effect of dry-process fibreboards

(62) After

the imposition of provisional measures,
various exporting producers again argued that the
injury suffered by the Community industry was not
caused by the dumped imports, but by the
competition from the thin dry-process fibreboards.

(63)

(64)

The investigation has shown that thin dry-process
fibreboard could be used in most areas where hard-
board is employed. Nevertheless, despite the strong
in
growth in the dry-process fibreboard market
recent years, as shown by the growth in consump-
tion for hardboard, this has not occurred at the
expense of the hardboard sector.

the size of

Various interested parties have submitted estimates
of
the thin dry-process fibreboards
sector. On the basis of statistics provided by the
European MDF industry, the volume of production
of
thin dry-process fibreboards is estimated at
between 500 000 and 600 000 m3 in 1997, with an
increase of around 50 % between 1993 and 1997.
Separate statistics on imports of thin dry-process
fibreboards are not available, but imports of dry-
process fibreboards of all thicknesses were reported
to be minor until 1997.

(65) However, at the provisional stage it was shown that,
since consumption of hardboard increased by 20 %
between 1993 and the investigation period (it
should be recalled that consumption was around
1,2 million tonnes in the investigation period,
despite the rise of the thin dry-process fibreboards
sector),
it was unlikely that the increase in the
demand of thin dry-process fibreboards was a major
cause of
injury. The injury to the Community
industry did not consist of a loss in sales volumes,
which might
indicate that a substitution had
occurred. Injury was mainly shown by financial
losses, due to a strong downward pressure on prices
exerted by the dumped imports.

(66)

Indeed, the data available show that the average
price of thin dry-process fibreboards was above that
of Community-produced hardboard of equivalent
thickness for all of the period 1993 to 1996. Only
during the investigation period is there some in-
dication that one type of thin dry-process fibre-

board, namely thin MDF, may have reached the
price level of Community-produced hardboard in
parts of the Community. So even in this scenario,
hardboard imported from the countries concerned
during the investigation period was sold at signi-
ficantly lower prices as outlined in recital 49.

(67) Given the interchangeability between all types of
wood-based products, thin dry-process fibreboards
have established a presence on all markets for
the hardboard
including
wood-based panels,
market. However,
increase in the
the general
demand for wood panels, and of fibreboards in
particular, has allowed the demand for hardboard to
grow in spite of the presence of the competing
products.

(68) No new information has been made available
which changes the provisional finding that, despite
the growth in demand for thin dry-process fibre-
boards, the dumped imports of hardboard from the
countries subject to investigation, with the excep-
tion of Brazil, in isolation caused material injury to
the Community industry, in terms of price depres-
sion and financial losses.

6. Conclusion on causation

(69)

In the light of the foregoing, the provisional find-
ings on causation are confirmed, with the excep-
tion of those relating to imports from Brazil.

F. COMMUNITY INTEREST

1. The definitive investigation

(70)

Following the imposition of provisional measures,
the analysis of the impact of anti-dumping meas-
ures on the various sectors involved in the investi-
gation continued. Users of hardboard were visited,
as indicated in recital 3, as well as a non-com-
plainant Community producer of eucalyptus hard-
board.

2. Impact on the Community industry

(71)

Subsequent to the imposition of provisional meas-
ures, several arguments were presented on the
likely impact of any definitive measures on the
Community industry.

arguments

These
between hardboard and thin dry-process
boards, as follows.

concerned the

relationship
fibre-

29. 1. 1999

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Official Journal of the European Communities

L 22/27

(a) Arguments presented by interested parties

(72)

It was claimed by certain interested parties that the
Community industry could not benefit from any
anti-dumping measures as a result of the substitut-
ability between thin dry-process fibreboards and
hardboard.

(75) As explained in recitals 5 to 9, hardboard and dry-
process fibreboards are theoretically interchange-
able in many end uses, but their different physical
characteristics imply that each has its specific
advantages and disadvantages for any particular end
use.

price

intention

the
of hardboard

In support of this view, it was alleged that the price
level of thin dry-process fibreboards has reached
the level of hardboard of equivalent
thickness.
According to these claims, the imposition of anti-
of
dumping measures, with
increasing
in the
the
Community, would have the effect of raising its
price above that of competing thin dry-process
fibreboards. Where the two products are inter-
changeable, the effect of the anti-dumping meas-
ures would be that customers will choose to use
thin dry-process fibreboards instead of hardboard.
In other words, the anti-dumping measures would
merely serve to reduce the consumption of hard-
board by encouraging a switch to the consumption
of thin dry-process fibreboards.

(73)

It was also claimed that thin dry-process fibre-
boards are a product in rising demand, with an
increasing investment in production capacity and
with the potential to replace hardboard in most end
uses if a change in relative prices occurs.

(b) The size of the thin dry-process fibreboards

sector

(74) As mentioned in recital 64, production of thin
dry-process fibreboards was between 500 000 and
600 000 m3 in 1997, with a growth of around 50 %
between 1993 and 1997. However,
the plants
specialised in the production of these thin boards
(that is, those equipped with the so-called calander
press) are currently operating at near-full capacity,
and most of the new investments in the sector of
dry-process fibreboards relate to plants which are
best employed in the production of ‘middle' thick-
nesses, that is, between 6 and 30 mm, which are
outside the scope of this investigation.

In the short run, therefore, an increase in output of
thin dry-process fibreboards is unlikely.

(c) The competition between hardboard and thin

dry-process fibreboards

(76)

(77)

(78)

The exporting producers claimed that if there is a
sufficient change in the relative prices of the two
competing products, the extra costs incurred by any
technical problems associated with switching to the
use of thin dry-process fibreboards can be over-
come if the price advantage in comparison with
hardboard becomes large enough.

The Community industry claimed, however, that
the substitution of hardboard with dry-process
fibreboards has already taken place in those end
uses where they have a technical advantage, and
that at present the competitive situation on the
market has found an equilibrium, which is not
going to be substantially altered by the proposed
anti-dumping measures. Since consumption of
hardboard continued to rise by 20 % over the
period examined, the data suggest that hardboard
has been able to compete effectively with thin dry-
lending weight to the argu-
process fibreboards,
ments
submitted by the Community industry.
Continual technical progress in the manufacture of
thin dry-process fibreboards, however, makes it
difficult to assess the degree to which thin dry-
process fibreboards might be used in fields hitherto
dominated by hardboard in the future.

the period examined, but as

Thin dry-process fibreboards have been priced
above hardboard of equivalent thickness for most
of
technological
progress has brought about cost reductions, their
the
prices have declined steadily throughout
period,
levels of
the
Community-produced hardboard of
equivalent
thickness by 1997.

reaching approximately

It is unclear whether this trend decrease in the
price of thin dry-process fibreboards, as technolo-
gical progress leads to continued cost-reductions, is
set to continue into the near future. The com-
plainant states that further substantial reductions in
the prices of thin dry-process fibreboards in the
Community are not to be expected. The product is,
it
is claimed, now beyond the phase of rapid
growth experienced in the last few years, which led
are
costs,
to declining unit

and the mills

L 22/28

EN

Official Journal of the European Communities

29. 1. 1999

approaching full capacity utilisation, with a cost
structure which is similar to that of hardboard.
Therefore, the price of thin dry-process fibreboards
is expected to remain, if definitive anti-dumping
measures are imposed, on the same level as the
price of Community-produced hardboard.

(79) On the other hand,

the continuous-line and
calander-press production processes which are used
to manufacture thin dry-process fibreboards are
said, by the dry-processed fibreboard industry, to be
more efficient than the multi-daylight presses used
in the production of hardboard. In particular, the
levels of waste and offcuts from these MDF produc-
tion processes are allegedly far lower than with
multi-daylight presses, whilst the speed of manu-
facture is greater. Thus, it is claimed that the prices
of Community-produced thin dry-process fibre-
boards can continue their declining trend. The
same prediction is made by some of the interested
parties concerning the price trend of imports of
from outside the
fibreboards
thin dry-process
Community.

These developments have implications for the use
of hardboard in those sectors where its end uses
overlap with those of dry-process fibreboards, such
as in the furniture industry. If prices of dry-process
fibreboards continue to decline after the imposition
of definitive anti-dumping measures, it is possible
that a switch in consumption away from hardboard
in favour of
thin dry-process fibreboards could
follow in those market segments where dry-process
fibreboards are interchangeable with hardboard.

(d) Conclusion on the impact of measures on the

Community industry

(80)

In view of the above analysis, it was found that the
measures proposed will most likely have a benefi-
cial
impact on the situation of the Community
industry. In case anti-dumping measures are not
imposed, the dumped imports will continue under-
cutting substantially the Community industry’s
prices. Given the financial difficulties highlighted
by the injury analysis, the continuation of the busi-
ness activity of the Community industry would be
seriously threatened and a large part of Community
production of hardboard, which guarantees at
present the coverage of a wide range of customers’
demands, would be put at risk, forcing users to
choose among less than optimal alternatives, such
as the dumped imports and other wood panel prod-
ucts.

It should also be borne in mind that, although it is
possible that some of the benefits of anti-dumping
measures may accrue to industries other than the
hardboard industry, it is highly unlikely that the
Community industry would have sought protection
against unfair trade had it not expected benefits
from measures.

The effectiveness of the measures, however, may be
reduced depending on the future price relationship
between hardboard and the dry-process fibreboards,
and a review under Article 11(3) of the Basic Regu-
lation may be justified should developments in this
context warrant such a review.

3. Impact on upstream industries

(81) As no further representations were received, the

provisional findings are confirmed.

4. Impact on importers

(82)

In the absence of further representations, the provi-
sional findings are confirmed.

5. Impact on users

(83) All the users cooperating during the investigation
were manufacturers of doors using only hardboard
imported from Brazil. It was found that imports
from Brazil have not
caused injury to the
Community industry and that no measures should
be adopted in respect of that country.

The impact on other users is expected to be minor,
given the rates of duty proposed and the small
share of hardboard in the cost of production of
most of such users.

6. Conclusion on Community interest

(84)

In the light of the foregoing, it is concluded that
there is no reason to consider that the imposition
of definitive anti-dumping measures on imports of
hardboard originating in the countries for whom
definitive measures are to be adopted would be
against the overall interest of the Community.

G. MEASURES PROPOSED

1. Termination of the proceeding in respect

of Brazil

(85)

Based on the conclusions of the definitive investi-
gation, the proceeding concerning imports origin-
terminated by Commission
ating in Brazil

is

29. 1. 1999

EN

Official Journal of the European Communities

L 22/29

anti-dumping duty

Decision 1999/71/EC (1) without the imposition of
measures. The amounts secured by way of a provi-
sional
therefore be
released. The undertakings provisionally accepted
from the two exporting producers in Brazil will
automatically lapse in accordance with Article 8(6)
of the Basic Regulation.

shall

2. Definitive measures

(a) Injury elimination level

(86)

The injury elimination level was calculated using
the same methodology as described in the Provi-
sional Regulation at recital 113 with a level of trade
adjustment to reflect sales made via traders.

(87) An injury margin was established for each of the
exporting producers concerned as a result of these
comparisons and this margin was expressed as a
percentage of the cif value of their exports to the
Community for product types for which there were
Community-made matches.

(b) Form and level of the definitive measures

(88)

Based on the above conclusions on dumping,
injury, causal link and Community interest, it was
considered what form and level of anti-dumping
measures would have to be taken in order to
remove the trade-distorting effects of
injurious
dumping and to restore effective competitive
conditions on the Community market.

Definitive measures should take the form of ad
valorem duties, which are deemed appropriate to
remove the injury caused by the dumped imports.

In accordance with Article 9(4) of the Basic Regula-
tion, as the injury margin was lower than the
dumping margin found for one of the cooperating
Polish exporting producers,
the definitive anti-
dumping duty for that company is set at the level
of the former. For all other exporting producers,
the injury margins are higher
than the cor-
responding dumping margins and measures are

Country

Company

Bulgaria

Fazerles AD

All other companies

Estonia

Latvia

All companies

All companies

Lithuania

All companies

(1) See page 71 of this Official Journal.

therefore based on the latter margins. The same
applies for the residual duties.

(c) Undertakings

(89)

It will be recalled from recital 115 et seq. of the
Provisional Regulation that undertakings had been
offered by the cooperating exporting producers in
Brazil, Bulgaria, Estonia, Latvia, Lithuania and
Poland, and provisionally accepted by the Commis-
sion.

These undertakings, with the exception of those
the
offered by the Brazilian companies, reflect
definitive findings of the investigation with respect
to the minimum prices provided therein and have
been
by Commission
accepted
Decision 1999/71/EC.

definitively

3. Collection of the provisional duties

(90)

In the light of the seriousness of the injury suffered
by the Community industry, it is considered neces-
sary that the amounts secured by way of the provi-
sional anti-dumping duty under the Provisional
Regulation should be definitively collected to the
extent of the amount of the definitive duties levied,

HAS ADOPTED THIS REGULATION:

Article 1

1. A definitive anti-dumping duty is hereby imposed
on imports of hardboard, defined as wet-processed fibre-
board of wood or other ligneous materials, whether or not
bonded with resins or other organic substances and with a
falling under CN codes
density exceeding 0,8 g/cm3,
(TARIC codes:
ex 4411 11 00
4411 11 00 * 10
in
originating
Bulgaria, Estonia, Latvia, Lithuania, Poland and Russia.

ex 4411 19 00
4411 19 00 * 10)

and
and

The rate of the definitive anti-dumping duty applic-
2.
able to the net free-at-Community frontier price to the
products manufactured by the companies listed below
shall be as follows:

Rate of duty
(%)

TARIC
additional
code

7,1

7,2

6,0

4,7

11,4

8 461

8 900

—

—

—

L 22/30

EN

Official Journal of the European Communities

29. 1. 1999

Country

Company

Poland

Alpex-Karlino SA

Ekopłyta SA

Zakłady Płyt Pils´niowych SA, Przemysl

Koniecpolskie Zakłady Płyt Pils´niowych SA, Prze-
mysl

Zakłady Płyt Pils´niowych SA w Krosnie Odrzan-
skim

All other companies

Russia

All companies

Rate of duty
(%)

TARIC
additional
code

22,4

7,0

9,1

11,4

11,0

34,8

30,6

8 479

8 480

8 481

8 494

8 495

8 900

—

Article 2

1. Notwithstanding Article 1, the definitive duty shall not apply to imports of hardboard
produced and directly exported and invoiced to an importing company in the Community
by the companies listed in paragraph 3, provided that the conditions of paragraph 2 are
met.

2. When the declaration for release for free circulation is presented, exemption from the
duty shall be conditional upon presentation to the competent Member State’s customs
services of a valid undertaking invoice issued by one of the companies listed in paragraph
3. The undertaking invoice, the essential elements of which are listed in the Annex, shall
conform to the requirements for such invoices set out in the undertaking accepted by
Commission Decision 1999/71/EC.

Imports accompanied by an undertaking invoice shall be declared under the following

3.
TARIC additional codes:

Country

Company

TARIC additional code

Bulgaria

Estonia

Latvia

Lithuania

Poland

Fazerles AD

Lessoplast AD

AS Repo Vabrikud

AS ‘Bolder(cid:131)ja'

JSC Grigiskes

Alpex-Karlino SA

Czarna Woda Zakłady Płyt
Pils´niowych

Ekopłyta SA

Zakłady Płyt Pils´niowych SA,
Przemysl

Koniecpolskie Zakłady Płyt
Pils´niowych SA

Zakłady Płyt Pils´niowych SA w
Krosnie Odrzanskim

Article 3

8 496

8 497

8 498

8 499

8 510

8 511

8 600

8 513

8 545

8 546

8 547

1.
The amount provisionally secured by the Provisional Regulation with respect to
imports originating in the countries mentioned in Article 1 shall be definitively collected
to the extent of the amount of the definitive duties levied.

The amounts provisionally secured by the Provisional Regulation with respect to

2.
imports originating in Brazil shall be released.

29. 1. 1999

EN

Official Journal of the European Communities

L 22/31

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

Article 4

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

Done at Brussels, 25 January 1999.

For the Council

The President

J. FISCHER

L 22/32

EN

Official Journal of the European Communities

29. 1. 1999

ANNEX

Elements to be indicated in the undertaking invoice referred to in Article 2(2)

1. The product reporting code (as established in the undertaking offered by the producing exporter in

question).

2. The exact description of the goods, including:

— the company product code (CPC); whether the hardboard is unworked or worked; the thickness and the
precise measures of the panel, indicating in brackets whether it has standard measures (STA) or
cut-to-size ones (CTS),

— CN code,
— the TARIC additional code under which the goods on the invoice may be customs cleared at

Community borders (as specified in the Regulation),

— quantity (to be given in m2).

3. The description of the terms of the sale, including:

— price per square metre (1),
— the applicable payment terms,
— the applicable delivery terms,
— total discounts and rebates.

4. Name of the importer to which the invoice is issued directly by the Company.

5. The name of the official of the Company that has issued the undertaking invoice and the following signed

declaration:

‘I, the undersigned, certify that the sale for direct export to the European Community of the goods covered
by this invoice is being made within the scope and under the terms of the undertaking offered by the
Company, and accepted by the European Commission through Decision 1999/71/EC (2). I declare that the
information provided in this invoice is complete and correct.'

(1) For undertaking invoices issued by the Latvian exporting producer AS ‘Bolder(cid:131)ja', in the case of sales via sales agents
established in the Community, the price per m2 may appear on an additional invoice issued by the agent instead of on
the undertaking invoice issued by AS ‘Bolder(cid:131)ja'. In that event, the undertaking invoice should also mention the name
of the agent.

(2) See page 71 of this Official Journal.