Council Regulation (EC) No 733/1999 of 30 March 1999 imposing a definitive anti-dumping duty on imports of calcium metal originating in Russia and the People's Republic of China and amending Regulation (EC) No 2557/94
Date: 1999-03-30
Institutions: Council of the European Union
Subjects: China, Russia, anti-dumping duty, calcium, import, metals

9. 4. 1999

EN

Official Journal of the European Communities

L 94/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 733/1999

of 30 March 1999

imposing a definitive anti-dumping duty on imports of calcium metal origin-
ating in Russia and the People’s Republic of China and amending Regulation
(EC) No 2557/94

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), and in particular Articles 8 and 9 thereof,

not members

of

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

Whereas:

(1)

(2)

(3)

A. PROCEDURE

1. Previous investigations

Imports of calcium metal originating in the
People’s Republic of China and Russia have been
the subject of a number of anti-dumping investiga-
tions.

Following a complaint lodged by the ‘Chambre
syndicale de l’(cid:130)lectrom(cid:130)tallurgie et de I’(cid:130)lectrochi-
mie', in January 1988, an anti-dumping investiga-
tion concerning imports of calcium metal origin-
ating in the People’s Republic of China and the
Soviet Union (2) was opened (hereinafter ‘the first
investigation'). Definitive duties of 21,8 % and
22 % for the People’s Republic of China and the
Soviet Union respectively were imposed by Council
Regulation (EEC) No 2808/89 (3).

Extramet, an importer which cooperated in the
investigation, appealed to the Court of Justice and
Regulation No 2808/89 was annulled by the Court
in June 1992 (4). The Court ruled that injury had
been insufficiently examined. Following judgment,
the Commission issued a notice (5) informing the

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regu-

lation (EC) No 905/98 (OJ L 128, 30.4.1998, p. 18).

(2) OJ C 20, 26.1.1988, p. 3.
(3) OJ L 271, 20.9.1989, p. 1.
(4) Case C-358/89, Extramet Industrie SA v. Council, [1992] ECR

I, p. 3813.

(5) OJ C 213, 19.8.1992, p. 14.

(4)

(5)

(6)

(7)

parties of the reimbursement of the anti-dumping
duties which had been collected.

Subsequently, the Commission, after consulting the
Advisory Committee, advised the parties of
the
investigation in a notice
resumption of
published in the Official Journal of the European
Communities (6) (hereinafter ‘the second investiga-
tion').

the

(EEC) No

2808/89 which
had
Regulation
concluded the first
investigation having been
annulled ex tunc by the Court, the Commission’s
investigation remained open. However, in order for
the Commission to conclude the investigation on
the basis of the most up-to-date information, new
data were collected concerning dumping and injury
resulting therefrom. The Commission sent out
supplementary questionnaires to the parties known
to be concerned.

2. Measures in force

Following the resumption of the investigation, the
Council, by Regulation (EC) No 2557/94 (7),
imposed definitive duties at the level provisionally
determined by Commission Regulation (EC) No
892/94 (8), i.e. ECU 2 074 per tonne on imports of
calcium metal originating in China and ECU 2 120
per tonne on imports of calcium metal originating
in Russia. The duties were imposed for both coun-
tries at the injury elimination levels since these
were lower than the respective dumping margins.

1995,

January

l’Industrie

Poudres
In
Sph(cid:130)riques (hereinafter ‘IPS'), previously Extramet,
the importer of calcium metal, brought an action
for annulment of Council Regulation (EC) No
2557/94 in the Court of First Instance. On 15

des

(6) OJ C 298, 14.11.1992, p. 3.
(7) OJ L 270, 21.10.1994, p. 27.
(8) OJ L 104, 23.4.1994, p. 5.

L 94/2

EN

Official Journal of the European Communities

9. 4. 1999

application. The Court

October 1998, the Court of First Instance dismissed
the
IPS’s
found that
Commission had correctly concluded that
the
product imported from Russia and China is a like
product to the one produced in the Community.
Furthermore, the Court found that the Community
producer did not refuse to sell its product to IPS
and that additional sources of supply in the United
States and Canada were available (1).

submit any calculation showing that a comparison
of the market research data, on which it relied, with
the actual Chinese or Russian export prices, led to
a reduction or an elimination of
the dumping
margins established in 1994, which amounted to
ECU 2 202 per tonne for the Chinese product and
ECU 2 502 per tonne for the Russian product, in
both cases at the level of free-at-Community-fron-
tier. It was therefore concluded that IPS did not
submit sufficient evidence which would have justi-
fied a review investigation of dumping.

3. Reasons for the interim review

(10) Consequently, since there was no justification for a
review investigation of dumping, the present review
was limited to injury aspects.

(8)

(9)

that

appropriate

considered it

review clause was

The Council, when adopting Regulation (EC) No
the
2557/94,
Commission undertake a review of the Regulation
six months after its entry into force if the condi-
tions of competition in the sector concerned so
required or otherwise, after one year. The reason for
linked to the specific
this
circumstances of
for calcium metal,
the market
notably the fact that in the Community there was
only one producer of this product and worldwide
the number of producers of calcium metal was very
limited. Under
the Council
considered it advisable to examine the effect of the
measures in conjunction with the general develop-
ment of the market situation for this particular
product.

these conditions,

Accordingly, after consultation,
the Commission
published a notice of initiation of a review (2) in
accordance with Article 11(3) of Regulation (EC)
No 384/96 (hereinafter referred to as ‘the basic
Regulation'). During the investigation, IPS alleged
that the domestic market prices in the reference
country, the United States, had decreased consider-
ably. Since such prices had been used to establish
in the investigation leading to
normal value (3)
Regulation (EC) No 2557/94,
the Commission
asked all parties to comment. However, since it had
been decided in Regulation (EC) No 2557/94 that
the
and
Community interest, but not dumping, IPS had to
provide sufficient evidence to meet the criteria of
Article 11(3) of the basic Regulation for the review
to be enlarged to include dumping. IPS submitted
market research data indicating that the price of
calcium metal in free circulation on the United
States market had declined. However, IPS did not,
despite a written request by the Commission,

review would concern only

injury

(1) Case T-2/95, Industrie des Poudres Sph(cid:130)riques v. Council,
[1998] ECR II-000. The CFI’s judgment is under appeal by
IPS, but the appeal does not concern the substantive findings
made by the judgment.
(2) OJ C 2, 5.1.1996, p. 2.
(3) See Recitals 12-18 of Regulation (EC) No 892/94 (OJ L 104,
23.4.1994, p. 5) and Recital 15 of Regulation (EC) No 2557/
94.

4. Review investigation

(11)

The Commission officially advised all parties
known to be concerned of the initiation of the
review and gave interested parties the opportunity
to make their views known in writing and to
request a hearing within the time limits set in the
notice of initiation.

(12) One importer and one organisation representing
exporters made their views known in writing and
were granted a hearing.

(13)

(14)

(15)

(16)

The Commission sent questionnaires to all parties
known to be concerned and received replies from
one Community producer and one importer.

The Commission sought and verified all informa-
tion it deemed necessary for the purposes of a
determination of injury and carried out investiga-
tions at the premises of the following companies:

(a) Community producer

(cid:190) PEM Electrometallurgie SA, Paris (France)

(b) Importer

(cid:190) Industrie des Poudres Sph(cid:130)riques SA, Anne-

masse (France)

The investigation of injury covered the period from
1 January 1992 to 30 September 1995 (hereinafter
‘the period under consideration').

The investigation could not be completed within
the normal time limit as provided for in the basic
Regulation for several reasons. Firstly, following a
complaint lodged by IPS in July 1994 alleging a
the Treaty by the
violation of Article 86 of

9. 4. 1999

EN

Official Journal of the European Communities

L 94/3

of

the

results

to wait until

Community producer, an investigation pursuant to
Regulation No 17 was initiated. It was considered
desirable
the
competition investigation were known since it was
expected that the competition investigation would
resolve IPS’s contentions about the cause of injury.
In November 1996 the Commission notified IPS of
its decision to reject the complaint as unfounded.
Secondly, the Commission had still to examine
submissions made during the first half of 1997 by
IPS and by the Community producer on the ques-
tion of a review of dumping. Since, as explained in
Recital 9 above, IPS eventually failed to submit
sufficient evidence on a change in the dumping
margin during a proposed investigation period of 1
October 1994 (cid:190) 30 September 1995, the Commis-
sion disclosed its findings in October 1997 and
heard the parties on their request in December
1997. This led to a number of critical comments
from the parties concerning figures used by the
Commission, which then re-examined all the data
it had used. Thirdly, as explained at Recital 54, the
Commission undertook lengthy negotiations with
Russian exporters concerning undertakings.

(19)

B. PRODUCT UNDER CONSIDERATION AND

LIKE PRODUCT

1. Product under consideration

(17)

The product under consideration is calcium metal.
Calcium metal is produced in two ways:

(cid:190) the first procedure, the reduction of lime with
aluminium is used by the Community producer
and producers in the United States and Canada,

(cid:190) the second procedure, the igneous electrolysis
of calcium followed by distillation is used by
the Russian and the Chinese producers;

The product is available in various forms and sizes:
crowns, chunks, turnings, chips and grains (or gran-
ules) and at different levels of purity (at above 96 %
whatever the manufacturing process). The prices of
the products vary according to the differences in
the size of the pieces and especially according to
the level of purity. According to the level of purity
and the level of content of Aluminium and Mag-
nesium, calcium metal is divided into three cat-
egories: calcium ‘R'
(standard type with a 97 %
calcium content), calcium ‘N' and calcium ‘NN'
(nuclear type with a higher degree of purity).

(18) Calcium metal

is mainly used within the

Community by two industries:

(cid:190) the

lead and ferro-alloy industries which

require chunks and chips;

(cid:190) the

steel

industry which requires

grains
obtained through mechanical pulverising of
chunks,
granules
obtained through re-smelting and atomisation.

and chips

turnings

or

2. Like product

IPS alleged that the calcium metal originating in
Russia and the People’s Republic of China is not
identical to the calcium metal produced in the
Community. The investigation revealed that the
two production methods described above result in a
slight difference in the composition of the product.
The standard calcium metal produced by the
Community producer is 97 % pure while calcium
metal produced by the Russian and Chinese prod-
ucers is between 98,5 % and 99,7 % pure. The
only consequence of this difference is that in the
process used by IPS for making granules, a higher
residue level occurs when the Community indus-
try’s calcium metal is used. However, this does not
affect
the product. In
addition, the Community producer also produces
another type of calcium metal with a low degree of
oxygen and a 98,5 % purity level which is identical
to the calcium metal supplied by Russian and
Chinese producers. These findings were confirmed
by a study undertaken by an independent labor-
atory in the framework of
the abovementioned
competition investigation. IPS acknowledged that
the higher quality
specially
produced by the Community industry at IPS’s
request, is acceptable for its requirements but stated
that it did not want to pay a premium over the
the
price for normal grade calcium metal of
Community industry (97 % purity).

the interchangeability of

(98,5 % purity),

(20)

i.e.

It is therefore concluded that the product under
consideration,
that exported by China and
Russia to the Community is virtually identical to
and interchangeable with the product produced in
the Community and constitutes consequently a like
product, within the meaning of Article 1(4) of the
basic Regulation, it being recalled that Regulation
(EC) No 2557/94 concluded that it is also a like

L 94/4

EN

Official Journal of the European Communities

9. 4. 1999

product to that produced in the United States, the
reference country used for the dumping determina-
tion.

3. Cumulated volume and market share of

dumped imports

C. INJURY

(24)

1. Preliminary remark

(21)

investigation,

the purpose of establishing injury in the
For
present
the Commission analysed
data relating to the period 1 January 1992 to 30
September 1995 (the period under consideration).
For the purpose of calculating the price differences
between export prices and Community industry’s
prices and costs
(undercutting or underselling
calculation respectively) the period 1 October 1994
until 30 September 1995 (hereinafter ‘the reference
period') was used.

the time of

The geographic scope of the investigation over the
period under consideration was the Community as
composed at
the
interim review, i.e. the Community of 15 Member
States. The injury assessment was based on the
relevant factors as provided for under Article 3 of
the basic Regulation.

the initiation of

(22)

(23)

2. Cumulative assessment of the effects of the

dumped imports

Indeed,

It was considered that the effects of the Chinese
and Russian imports of calcium metal should be
analysed cumulatively in the sense of Article 3(4) of
the basic Regulation.
the margins of
dumping established in Regulation (EC) No 2557/
94 in relation to the imports of both countries
concerned exceed in each case 2 % and the
volumes of imported products from either source
are not negligible within the meaning of Article
3(4) of the basic Regulation since they represent in
each case a market share of more than 1 % of the
Community market.

In addition, a cumulative assessment of the effects
of the imports is appropriate in the light of the
conditions of competition between the imported
products and also, between the imported products
and the like Community product. Indeed, all these
products are interchangeable, sold or offered for
sale in the same geographical markets and they
have common or similar channels of distribution.

(25)

(26)

shares of

the market

The cumulated quantities of the product concerned
imported from Russia and the People’s Republic of
China to the Community increased from 612
tonnes in 1992 to 1 007 tonnes in the reference
period. Due, however, to the increase in overall
consumption,
the total
imports decreased from 51,8 % in 1992 to 40,2 %
in the reference period. These figures were the
following
result of a specific verification since,
disclosure, the parties had stated that the volume of
imports in free circulation originally used by the
Commission was too high. The Commission again
verified all available import data and the question-
this claim was
naire responses and found that
partially justified. The
corrected
accordingly. Furthermore, as explained in recital
28, the Commission included the import transac-
tions under the regime of inward processing relief
in order to establish the market shares of Russian
and Chinese imports on the Community market.

figures were

It should be noted that the market share of Russian
and Chinese imports found in the second investi-
gation was 52,8 % for 1992. The slight difference
with the above figure of 51,8 % used in Regulation
(EC) No 892/94 is due to the fact that full data for
1992 were not yet available in the second investiga-
tion.

4. Prices of the dumped product

the Community
!n comparing the prices of
industry and the prices of imports, the Commission
used average prices on the basis of sales to the first
independent importer in the case of imports, and
to first independent customers in the case of the
Community producer. Comparisons were made at
levels of trade known to be comparable to those of
Chinese and Russian imports.

still

undercutting

The Commission established that, during the refer-
ence period, Chinese and Russian import prices
were
the
Community producer, by 52,2 % on average for
imports originating in the People’s Republic of
China and 52,5 % for
imports originating in
Russia.

prices

the

of

9. 4. 1999

EN

Official Journal of the European Communities

L 94/5

5. Community consumption

(27)

In calculating the apparent Community consump-
tion of calcium metal, the sales in the Community
by the Community industry, as established on the
basis of verified data provided by the Community
producer, were added to the total imports into the
Community as published by Eurostat. Following
the investigation, the Commission disclosed figures
relating to the Community consumption to the
parties. These figures were contested, especially
regarding import volumes, and the Commission
carefully re-examined them. On the basis of the
detailed information found during the verification
regarding sales
in the Community and total
imports, it has been found that the Community
market
increased from about
1 182 tonnes in 1992 to about 2 502 tonnes in the
reference period, an overall
increase of about
112 %.

for calcium metal

the regime of

(28) One party raised the issue of inclusion of imports
under
inward processing relief,
arguing that only the imports released into free
circulation in the Community can cause injury to
the Community industry. However, it is considered
that the transactions which may cause injury to a
Community industry, i.e. dumped imports, include
imports under the inward processing regime since
Article 1(2) of the basic Regulation states that a
its
product
export price to the Community' (cid:190) as opposed to
its release in free circulation (cid:190) ‘is less than its
normal value'. In addition, sales of the product to
companies using inward processing relief may well
contribute to the injury caused to the Community
producer as they reduce outlets which would other-
wise be available to them.

is considered as being dumped ‘if

(30)

From 1994 on, the Community producer invested
in new furnaces. This led to an increase of its
production capacity, which grew by 24 % during
the period under consideration.

(31) During the same period the Community industry
increased its capacity utilisation by 30 %.

Sales in the Community

(32) During

consideration,
Community industry almost tripled its sales.

the period under

the

(33)

the total production of

The increase in production and sales between 1993
and the end of the reference period was due to the
temporary existence of a new market to a user in
the cord wire industry. This new user bought
the
around 32 % of
Community producer in 1994. The Community
producer provided evidence that from the fourth
quarter of 1995 onwards
this new consumer
stopped using calcium metal for the production of
cord wire in its three plants. Despite IPS’s allega-
tion that such a major operator was unknown to it,
the evidence submitted during verification by the
Community industry made it clear that this user
existed and that all shipments of calcium metal to
this user stopped definitively in the fourth quarter
of 1995 due to a change in commercial policy by
this user.

Market share of the Community industry

Consequently, and in accordance with constant
practice, the Council concluded that the inclusion
of export transactions relating to inward processing
relief was justified in its assessment of injury.

(34)

6. Situation of the Community industry

Production, capacity and capacity utilisation rate

(29) During the period under consideration, the produc-
the Community producer increased by

tion of
67 %.

second

established

investigation was

Between 1992 and the reference period, the market
share of the Community industry increased from
36,5 % in 1992 to 46 % in the reference period. It
should be noted that the market share for 1992 in
at
the
31,7 % (1). However,
this figure was established
through an extrapolation of the findings during the
16 months chosen for the second investigation
(1 July 1991 (cid:190) 31 October 1992) to calendar year
1992. The market shares in the present investiga-
tion have been established on the basis of verified
data for 1992 which were not available at the time
of
as
explained in Recital 28, the Commission consid-
ered it to be appropriate to establish the market
shares on the basis of total imports. The market
shares were recalculated in order to establish the
trend of market shares over
the period under
consideration, on the basis of the same method-
ology.

investigation. Furthermore,

initial

the

(1) See Recital 32 of Regulation (EC) No 892/94.

(36)

(37)

(38)

L 94/6

EN

Official Journal of the European Communities

9. 4. 1999

Stocks

(35) During the reference period the stocks were
reduced by 40 %. However, between 1994 and the
end of
the verification
revealed a sudden increase in stocks by 40 %.

the reference period,

as regards injury in the Community. Secondly, that
the Community producer refused to sell calcium
metal
the
Community producer allegedly maintained a policy
of predatory and abusive pricing.

competitors. Thirdly,

to its

that

In November 1996,
the Commission, after an
investigation definitively rejected the complaint
lodged by IPS, concluding that, on the basis of its
findings, no anti-competitive practices could be
attributed to the Community producer (1).

Profitability

(40)

situation of

the Community producer
The
improved following the imposition of
the anti-
dumping duties in 1994, although not to the extent
of allowing the Community producer to make a
profit. Losses increased from 1992 to 1993 but the
situation improved during the reference period.
However, despite this improvement in terms of
profitability, the Community producer was still not
able to reach the break-even level.

to

same

improve

competition investigation,

In the
the
Commission also examined IPS’s claim that the
Community producer misused the anti-dumping
procedure
its position on the
Community calcium metal market to deprive its
competitor of supplies of raw material. It was
concluded that this was not the case since, even if a
company has a dominant position this does not
deprive it of
to legitimate protection
against unfair competition from producers in third
countries and, in any event, no anti-competitive
practice could be attributed to that company.

the right

7. Conditions of competition

should be recalled that

in Case C-385/89,
It
Extramet v. Council, the Court of Justice held that
followed the proper
the institutions had not
procedure in determining injury,
in particular
whether injury could have been self-inflicted by the
Community
supplying a major
Community user of the product, namely IPS.

industry not

The Community producer was condemned in
March 1992 by the Conseil de la Concurrence in
France for behaviour aimed at hindering the setting
up of a competitor on a downstream market by
effectively refusing to supply IPS (previously
Extramet) in 1984. The judgment was confirmed by
the Cour d’Appel of Paris. However,
the Cour
d’Appel also declared that no unlawful competitive
practices could be attributed to the Community
producer after 1984.

(39) On 20 July 1994,

the importer, IPS,

lodged a
complaint with the Commission under Regulation
No 17, alleging an abuse of a dominant position by
the Community producer, contrary to Article 86 of
the Treaty. Three main arguments were raised.
Firstly, that the Community producer was abusing
anti-dumping proceedings in order to obtain infor-
mation on the costs and general position of its
competitors on the market. IPS also alleged that
the Community producer misled the Commission

(41)

(42)

(43)

(44)

8. The evolution of the market

The review investigation was initiated principally
with a view to examining the impact of the meas-
ures in conjunction with the general development
of the market situation for the product under inves-
tigation. The investigation has revealed that the
Community market
for calcium metal became
more competitive after the imposition of anti-
dumping duties. This conclusion was based on the
following findings.

Firstly, Chinese and Russian producers and/or
exporters have maintained a significant market
share.

Secondly, the Commission has found that, after the
imposition of duties,
the Community producer,
while reinforcing its position on the market (from
36,5 % in 1992 to 46 % in the reference period),
has not attained the market share it held prior to
the beginning of dumped imports from Russia and
China.

since the imposition of anti-dumping
Thirdly,
duties in 1994, the market for calcium metal has
been characterised by the increased presence of
other suppliers, notably from the United States,
with Canadian imports remaining relatively stable.

(45) Consequently IPS’s allegation that the imposition
of anti-dumping duties seriously limited the supply
of calcium metal other than that produced in the
Community is not well founded.

(1) Decision of 7 November 1996. On 13 January 1997 IPS
this decision

the annulment of

lodged an Application for
(Case T-5/97, still pending).

9. 4. 1999

EN

Official Journal of the European Communities

L 94/7

(46) One party alleged that the imports from the United
States consist of imports of cord wire containing
calcium metal, which falls under the same tariff
heading as calcium metal. However, no evidence
was provided to substantiate this allegation and a
verification of this allegation did not show that
imports of calcium metal from the United States
are in effect imports of cord wire.

(47) During the course of the proceeding, it was alleged
that imports of calcium metal from the United
States had actually originated in Russia and China,
thereby circumventing the anti-dumping duty.
However, no evidence was forwarded to support
these allegations.

9. Conclusion

(48) As a result of the imposition of definitive anti-
dumping duties in 1994 and of exceptional sales
during the period from 1993 to 1995 (see Recital
33), certain trends
regarding the Community
industry operations have improved, e.g. sales and
market share. However, despite these trends it is
considered that the Community industry is still
suffering material injury, consisting in particular of
continuous price pressure and losses.

(49)

Furthermore, it has been established that the impo-
sition of anti-dumping duties in 1994 had no nega-
tive impact on the evolution of the Community
market for calcium metal, notably in terms of oper-
ators actively competing on that market and alter-
native sources of supply, while the anti-dumping
measures did not confer an advantaged position on
the market
to the Community producer. The
Council is of the view that this finding is particu-
larly important
that alternative
sources of supply exist.

since it

shows

increased considerably.

therefore, be attributed to any fall

in
cannot,
demand. It should be stressed that imports from
third countries
Imports
from the United States increased from 49 tonnes to
270,8 tonnes in the reference period while imports
originating in Canada increased from 62 tonnes in
1992 to 74,1 tonnes
in the reference period.
However, according to Eurostat, these imports were
at higher prices than those under consideration.
The Commission therefore concluded that these
imports were not a material cause of the injury
suffered by the Community industry.

(52)

IPS alleged that a subsidiary of the Community
industry was importing significant quantities of
calcium metal from Russia and China under the
regime of
inward processing relief and conse-
quently that any injury would therefore be partly
self-inflicted. This allegation was not supported by
any evidence. The Commission found during the
investigation that the Community producer’s core
production and commercialisation activity in the
Community remained unchanged. Furthermore,
even if a subsidiary of
this producer had been
importing for use in transformation activities some
quantities of calcium metal from Russia and China
in addition to the quantities delivered by the
Community producer,
this would have to be
considered as a normal commercial behaviour in
order to cope with the unfair commercial practices
the Russian and Chinese exporters on the
of
Community market and to limit somewhat
the
injury suffered by the parent company.

D. CAUSATION

2. Conclusion on causation

1. Other factors

(50)

The Commission services examined whether the
injury suffered by the Community industry had
been caused by factors other than the dumped
imports. In particular,
the Commission services
the trend in consumption in the
looked at
Community market and the evolution and impact
of imports from other countries.

(51) Community

consumption

calcium metal
increased continuously
and grew by 112 %
between 1992 and the end of the reference period.
The injury suffered by the Community industry

of

(53) According to the above,

factors other than the
dumped imports have not been shown to have a
material impact on the Community industry. More-
over, since the injury suffered by the Community
industry consists mainly of continuous price pres-
sure and losses resulting therefrom, a causal link
with the low priced dumped imports undercutting
the Community industry’s prices is evident. Were
measures not to exist, the level of undercutting
would be significant, enabling Chinese and Russian
producers
the
Community thus creating downward pressure on
the Community producers’ prices. As mentioned in
recital 26,
the undercutting by Chinese and
Russian exporters remains very significant.

increase

exports

their

to

to

L 94/8

EN

Official Journal of the European Communities

9. 4. 1999

E. UNDERTAKING

(54) One Russian exporter offered an undertaking
providing for a minimum price. The Commission
entered into negotiation with this exporter
in
December 1997. However, despite lengthy nego-
tiation, the proposed minimum price was around
30 % below the target price necessary for the
Community producer
to achieve a reasonable
profit. Therefore, the proposed undertaking was not
considered acceptable.

(59)

(60)

This level of duty is less than the dumping margins
which were established in the second investigation
and should therefore constitute the amount of the
definitive duty to be imposed.

In accordance with Article 11(2) of the basic Regu-
lation, the present review does not affect the due
date of expiry of the measures imposed in 1994
since it has been limited to an investigation of
injury.

(61)

Regulation (EC) No 2557/94 should therefore be
amended to take account of the injury elimination
level as amended,

F. ANTI-DUMPING MEASURES

(55) Having established that the dumped imports under
consideration are still causing material injury to the
Community industry and that it remains in the
Community’s interest to continue to impose meas-
ures, the proposed measures should be amended to
eliminate the injury caused by these imports as
established in the present review investigation.

(56)

In order to calculate the injury elimination level,
the Commission, as in the previous investigation,
compared the prices of the dumped imports with
the selling prices of
the Community industry
reflecting its cost of production plus a reasonable
level of profit.

(57) On this basis, the weighted average export prices
for those product types used in the determination
of price undercutting, as established for the period
of
investigation, on a CIF Community frontier
level, adjusted to take account of customs duty paid
and post-importation costs
and profit, were
compared with the Community industry’s cost of
production plus a reasonable profit margin which
was considered to be the minimum profit level
necessary to make the sector concerned viable.

(58)

The comparison showed an injury margin of
59,6 % for China and 59,5 % for Russia. These
figures show a slight decrease in the duty rate
which is due to the downward adjustment to the
appropriate level of the injury threshold as a result
of a fall
the
Community industry. The amended injury elimina-
tion level leads to a conclusion that a duty of EUR
1 863 per tonne of Russian calcium metal and EUR
1 876 per tonne of Chinese calcium metal is appro-
priate.

in certain production costs of

HAS ADOPTED THIS REGULATION:

Article 1

Article 1 of Regulation (EC) No 2557/94 is hereby
replaced by the following:

‘Article 1

A definitive

anti-dumping duty

1.
is hereby
imposed on imports of calcium metal falling within
CN code 2805 21 00 originating in Russia and the
People’s Republic of China.

2.
The rate of duty applicable is EUR 1 863 per
tonne for imports originating in Russia and EUR
1 876 per
imports originating in the
People’s Republic of China.

tonne for

3.
In instances where the customs value is reduced
pursuant to the second paragraph of Article 145 of
Commission Regulation (EEC) No 2454/93 (1), the
rate of the specific duty applicable, shall be reduced
pro rata.

Unless otherwise specified,

4.
force concerning customs duties shall apply.

the provisions in

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last
amended by Regulation (EC) No 502/99 (OJ L 65,
12.3.1999, p. 1 ).'

Article 2

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

9. 4. 1999

EN

Official Journal of the European Communities

L 94/9

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

Done at Brussels, 30 March 1999.

For the Council

The President

K.-H. FUNKE