Council Regulation (EC) No 1600/1999 of 12 July 1999 imposing definitive anti-dumping duties and collecting definitively the provisional duties imposed on imports of stainless steel wires with a diameter of 1 mm or more originating in India and terminating the proceeding concerning imports of stainless steel wires with a diameter of 1 mm or more originating in the Republic of Korea
Date: 1999-07-12
Institutions: Council of the European Union
Subjects: India, South Korea, anti-dumping duty, import, steel, wire

22. 7. 1999

EN

Official Journal of the European Communities

L 189/19

COUNCIL REGULATION (EC) No 1600/1999

of 12 July 1999

imposing definitive anti-dumping duties and collecting definitively the provisional duties imposed
on imports of stainless steel wires with a diameter of 1 mm or more originating in India and
terminating the proceeding concerning imports of stainless steel wires with a diameter of 1 mm or
more originating in the Republic of Korea

THE COUNCIL OF THE EUROPEAN UNION,

(5)

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 not members of the European Community (1) and in
particular Article 9 thereof,

Having regard to Council Regulation (EC) No 2026/97 of 6
October 1997 on protection against subsidised imports from
countries not members of the European Community (2) and in
particular Article 24 thereof,

Having regard to the proposal submitted by the Commission
after consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

(A) PROVISIONAL MEASURES

The Commission, by Regulation (EC) No 617/1999 (3)
(hereinafter referred to as the ‘provisional Regulation’)
imposed provisional anti-dumping duties on imports of
stainless steel wires with a diameter of 1 mm or more
(hereinafter referred to as ‘large SSW’ or ‘product concer-
ned’), originating in India, and falling within CN code
ex 7223 00 19.

In the same Regulation, it was provisionally concluded
that no anti-dumping duty should be imposed on
imports of the product concerned originating in Korea
covered by the same investigation, due to the dumping
margins established which were either de minimis or very
close to de minimis.

(B) SUBSEQUENT PROCEDURE

Subsequent to the disclosure of the essential facts and
considerations on the basis of which it was decided to
impose provisional measures on imports of large SSW
originating in India (hereinafter referred to as ‘disclo-
sure’), several interested parties submitted comments in
writing. The parties who so requested were also granted
an opportunity to be heard orally.

(4)

The Commission continued to seek and verify all infor-
mation it deemed necessary for its definitive findings.

(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 288, 21.10.1997, p. 1.
(3) OJ L 79, 24.3.1999, p. 13.

the essential

facts and
All parties were informed of
considerations on the basis of which it is intended to
recommend the imposition of definitive anti-dumping
duties and the definitive collection of amounts secured
by way of provisional duties. They were also granted a
period within which they could make representations
subsequent to this disclosure.

(6)

The oral and written comments submitted by the parties
were considered, and, where deemed appropriate, the
findings have been modified accordingly.
provisional

(7)

(8)

(9)

(C) PRODUCT CONCERNED AND LIKE PRODUCT

The product concerned is large SSW, containing by
weight 2,5 % or more of nickel, other than containing
by weight 28 % or more but no more than 31 % of
nickel and 20 % or more but not more than 22 % of
chromium.

It was found at the provisional stage of the investigation
that there were differences in physical characteristics and
uses between SSW covered by the present investigation,
i.e. with a diameter of 1 mm or more (large wire) and
SSW with a diameter of less than 1 mm (fine wire). For
these reasons, it also appeared that there was no or only
very limited interchangeability between large and fine
wires' applications. However, it was also stated in the
provisional Regulation that the question whether a clear
dividing line could be drawn between these two prod-
ucts was going to be further investigated up to the
definitive stage.

On the basis of the further information collected from
interested parties, it is concluded that large wire and fine
wire are two different products as they present different
physical
characteristics and are used for different
applications. Firstly, as to the physical characteristics, the
tensile strength, granular structure and coating of SSW
are different
for large and fine wires. Secondly, as
regards the various applications of the two products, it
has been found that large wire is used for heavier duty
engineering applications such as fasteners, wall rein-
forcement products, welding wires, etc. By contrast, fine
wire is as a rule used for precision applications such as
screens and filters (woven wire cloth) with small open-
ings for filtering very fine or small particles (for example
dust filters and chemical filters), medical/surgical applica-
tions, etc.

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Official Journal of the European Communities

22. 7. 1999

(10) On the basis of the above it is concluded that fine and
large wires are two different products which have
different characteristics and applications and that they
are not interchangeable from the point of view of SSW
users.

(15)

(11)

In view of the above and since no arguments were put
forward by any of the parties concerned with respect to
the Commission's provisional findings on the product
concerned and the considerations made on the like
product, the facts and findings as set out in recitals 7 to
11 of the provisional Regulation, are hereby confirmed.

(D) DUMPING

on the basis of domestic sales of profitable product
types.

in the domestic market of

In this respect it should be noted that, pursuant to
Article 2(6) of Council Regulation (EC) No 384/96 (here-
inafter referred to as ‘Basic Regulation’), the amount for
profits has to be based on data pertaining to production
and sales, in the ordinary course of trade, of the like
product
the exporting
country. In this context sales below cost of a particular
product type can only be taken into account for the
determination of the profit margin if the volume of
non-profitable sales of such type is not higher than 20 %
of all sales of the type in question. The above rule has
been respected when determining the profit margin used
in the determination of the constructed normal value.

1. Korea

(16)

Therefore, the claims concerning the profit margin used
to determine constructed normal value were rejected.

(12)

(13)

Since no arguments have been put forward by any inter-
ested party and the investigation has not led to any
different conclusion, the provisional findings as set out
in recital 23(b) of the provisional Regulation are hereby
confirmed, i.e. the dumping margins established for the
Korean exporting producers concerned are de minimis
except for two exporting producers. Furthermore, the
weighted average country-wide dumping margin for all
the exporting producers investigated which represent the
totality of exports of
large SSW to the Community
originating in Korea expressed as a percentage of the CIF
price at Community frontier level is de minimis, i.e. under
2 %. Under these circumstances, the dumping margin for
Korea has to be considered negligible in accordance with
Article 9(3) of the Basic Regulation.

2. India

(a) Normal value

to

profit margins

Indian exporting producers argued that
determine
used

the
Several
the
average
constructed normal value were unreasonable, in partic-
ular because they were substantially higher than the
profit margin of 5 % which was mentioned in recital 79
of the provisional Regulation as a reasonable profit rate
for the Community industry in the determination of the
non-injurious price. These exporting producers claimed
that the company-wide profit margin during the invest-
igation period,
i.e. a global figure including both the
product concerned and other products, should be used
to determine the constructed normal value. In the case
of non-profitable companies,
it was claimed that the
average of the company-wide profit margins of profit-
able companies in India should be used to determine the
constructed normal value.

(14) As an alternative to the above it was requested that the
average profit be calculated for each company concerned
on the basis of all domestic sales,
i.e. sales of both
profitable and unprofitable product types, and not only

(17) One Indian exporting producer claimed that account
should be taken of the goods-in-process stock variation
in the determination of the constructed normal value.
This claim was granted since the evidence finally
submitted was sufficient.

(18)

Two Indian exporting producers which sustained losses
throughout the investigation period claimed, pursuant to
Article 2(5) of the basic Regulation, that these losses had
occurred during the start-up phase and that this situa-
tion should be taken into account. However, since none
of these two companies met the criteria set in Article
2(5) of the basic Regulation, the adjustment could not
be granted.

(19)

In the absence of any other arguments concerning the
determination of the normal value, the findings set out
in recitals 12 and 13 of the provisional Regulation are
otherwise confirmed.

(b) Export price

(20)

In the absence of any new arguments concerning the
determination of the export price, the findings set out in
recitals 14 to 16 of
the provisional Regulation are
hereby confirmed.

(c) Comparison

(21) One Indian exporting producer requested that the credit
cost incurred by its related importer be determined on
the basis of the payment terms granted by the latter to
its first independent customer in the Community instead
of on the basis of the payment terms agreed between the
parent company and the related importer. This request
was accepted and the credit cost determination amended
accordingly.

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Official Journal of the European Communities

L 189/21

(22)

In the absence of any other arguments concerning the
adjustments made in order to allow for a fair compar-
ison, the provisional findings set out in recitals 17 to 19
of the provisional Regulation are hereby confirmed.

the findings set out in recitals 27 of the provisional
Regulation are hereby confirmed.

(d) Dumping margins

(23)

In the absence of any new arguments concerning the
determination of the dumping margin, the findings set
out in recitals 20 to 22 of the provisional Regulation are
hereby confirmed. On this basis, the dumping margins,
expressed as a percentage of the cif price at Community
frontier level, are:

Bhansali Bright Bars Pvt., Ltd
Devidayal India Ltd
Hindustan Stainless Steel Wire Co., Pvt Ltd
Indore Wire Co., Ltd
Isibars Ltd/Isinox Steels Ltd
Kei Industries Ltd
Macro Bars & Wires Pvt., Ltd
Mukand Ltd
Raajratna Metal Industries Ltd
Triveni Shinton International Ltd
Venus Wire Industries Ltd

1,2 %
27,5 %
76,2 %
35,8 %
11,4 %
76,2 %
21,9 %
23,3 %
16,0 %
68,2 %
6,6 %

(E) INJURY

(24)

(25)

1. Community industry

forward by any of

In the absence of new evidence or any further substan-
tiated argument put
the parties
concerned, the facts and findings set out in recitals 24
and 25 of the provisional Regulation are confirmed, i.e
the complainant Community producers
representing
more than 65 % of the total Community production of
large SSW constitute the Community industry,
in
accordance with Article 4(1) of the basic Regulation.

2. Competition aspects

In their comments following the disclosure, the Indian
exporting producers reiterated their claim that all data
submitted by the Community industry within the frame-
work of the current proceeding would be artificially
inflated as a result of the uniform application of the
‘alloy surcharge’ system, and that it would, therefore, not
be possible to conduct any accurate injury analysis
within the framework of the anti-dumping proceeding.
Since no new arguments have been put forward by any
interested party and there has been a definitive decision
of the Commission rejecting the complaint on the case
No IV/E-l/36.930 concerning stainless steel bright bars,
which belong to the same category of products as SSW,

3. Community consumption

(26)

(27)

some

Following disclosure,
interested parties have
argued that the methodology followed for the purpose
of determining the Community consumption, in partic-
ular with regard to the sales of non-cooperating
Community producers and third countries imports, was
inappropriate.

In this respect, it should be recalled that detailed and
verified data are only available for the Community
industry and the cooperating exporting producers in the
countries concerned. Therefore, in line with the consis-
tent practice of the Community institutions, recourse
was made to information available to the Commission,
and in particular to independent statistical sources. No
interested party has provided information that would
show that the approach followed by the Community
institutions was unreasonable and not justified in the
circumstances of the present case.

(28)

Consequently, the findings as set out in recitals 28 and
29 of the provisional Regulation are confirmed.

4. Import volume and market shares of the dumped

imports

(29)

Since no new arguments were put forward by any inter-
ested party, the findings detailed in recitals 30 and 31 of
the provisional Regulation are hereby confirmed.

(30)

(31)

5. Prices of the dumped imports

Some interested parties contested the methodology used
by the Commission at
the provisional stage for the
calculation of price undercutting margins. They claimed
that these margins were inflated because any negative
amount by which the exporting producers' prices
undercut those of the Community industry were not
offset with any positive amounts.

the price undercutting margins

It should be noted that in the methodology described in
recitals 33 and 34 of the provisional Regulation for the
calculation of
the
weighted average net sales prices of the dumped imports
were compared, on a model-by-model basis, with the
weighted average net sales price by model of
the
Community industry in the Community market. There-
fore, this methodology allowed, on a per model basis, to
take into account the amount by which the exporting
producers' price of an export transaction exceeded that
of the Community industry's weighted average price.
The argument was therefore rejected.

(32)

In the absence of any other comments, the conclusions
reached in recitals 32 to 35 of the provisional Regula-
tion are hereby confirmed.

L 189/22

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Official Journal of the European Communities

22. 7. 1999

6. Situation of the Community industry

ment of the impact of sales by the non cooperating
Community producers was not fully reliable.

Since no arguments were put forward by any interested
findings concerning the
party as to the provisional
economic indicators relating to the situation of
the
Community industry, the findings as set out in recitals
36 to 43 of the provisional Regulation are confirmed.

(38)

(33)

(34)

Some interested parties have argued that the economic
indicators of the Community industry did not allow the
conclusion that
this industry was materially injured.
Indeed, they argued that the situation of the Community
industry remained relatively stable during the period
under consideration, and even showed signs of improve-
ment in terms of production, sales volume and invest-
ments. As to profitability, its decreasing trend should be
explained by the decision of the Community industry to
concentrate on products generating higher costs of
production.

(35) As set out in recitals 44 and 45 of the provisional
Regulation, it is recalled that the conclusion of material
injury of the Community industry was based on the fact
that the Community industry, faced to dumped imports,
could not follow the growing trend of the market, did
never recover its position on the market but was only
able to keep its sales volume stable at the expense of its
profitability which, in a context of depressed sales prices,
strongly deteriorated. Indeed, the sales volume of the
Community industry only increased by 5 % between
1994 and
the
Community market went up by 20 % during the same
period. Furthermore, the slight increase of production
the Community
the fact
and investment reflect
industry tried to keep its market share in a significantly
growing market. Thus, the decreasing trend of its profit-
ability is not exclusively due, if at all, to the fact that the
Community industry started to produce also some
models for which less competition from the dumped
imports was faced.

period, whilst

investigation

that

the

(36) On the basis of the above,

it is concluded that the
Community industry is suffering material injury as set
out in recitals 44 and 45 of the provisional Regulation.

(F) CAUSATION

(37)

Following the adoption of the provisional Regulation,
some interested parties questioned whether the injury
suffered by the Community industry was caused by the
dumped imports. In particular, it was alleged that the
factors, namely by
injury was
Community producers which are not part of
the
Community industry as defined above. It was argued in
this respect
the limited cooperation
obtained from the Community producers, the assess-

caused by other

in view of

that

In view of the transparency and the price sensitivity of
the SSW market in the Community, it is not unreason-
able to conclude that other Community producers are
likely to have followed a trend similar to that found for
the Community industry, in particular as regards prices.
Furthermore, no interested party has submitted any
information
non-
complaining producers operated in a more positive
context. Thus, the argument should be rejected and the
findings set out in recital 50 of the provisional Regula-
i.e. the other Community
tion are hereby confirmed,
producers have not contributed to the injury suffered by
the Community industry.

that would

suggest

that

the

(39)

In the light of the above, the findings set out in the
provisional Regulation in recitals 46 to 59 are hereby
confirmed,
the low-priced dumped imports
originating in India have caused material injury to the
Community industry.

i.e that

(G) COMMUNITY INTEREST

(40)

Following the adoption of the provisional Regulation,
comments have been submitted by users with respect to
the potential effect of the duties.

(41) As to the Community industry and other Community
in the absence of any further submissions
producers,
regarding the impact of the duties on their situation, the
conclusion is hereby confirmed that the imposition of
measures are likely to enable the Community industry to
regain a satisfactory profitability, and to maintain and
further develop its activities in the Community securing
both employment and investment.

(42)

(43)

In the absence of any further reaction from unrelated
importers and from the suppliers, the findings set out in
recitals 66 to 70 of
the provisional Regulation are
hereby confirmed.

Concerning the users, some companies have alleged that
the imposition of measures would have a direct impact
on their economic situation since it would lead to an
increase of the price of their raw material. However, they
have also stated that, apart from India, there are other
sources of supply outside the Community. Furthermore,
in view of the overall low level of the duties, the impact
of any price increase would be limited.

(44) Other users have insisted on the quality and reliability of
the Community industry's products, considering there-
fore that the imposition of the measures would not
affect their own situation.

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Official Journal of the European Communities

L 189/23

(45)

Therefore, the findings set out in recitals 60 to 77 of the
provisional Regulation are confirmed in the sense that
there are no compelling reasons against the imposition
of anti-dumping duties.

(H) DEFINITIVE COURSE OF ACTION

1. Korea

(46)

In the light of the above findings that the country-wide
weighted average dumping margin for imports origin-
ating in Korea is de minimis, the proceeding concerning
imports of large SSW originating in Korea should be
terminated in accordance with Article 9(3) of the Basic
Regulation.

Company

Antidumping duty (%)

Bhansali

Devidayal

Indore Wire

Isibars/Isinox

Kei Industries

Macro Bars

Mukand

Raajratna

Triveni

Venus Wire

0

2,4

16,5

0

32,6

0

10,1

0

55,6

0

2. India

(47)

Based on the above conclusions on dumping,
injury,
causal link and Community interest, it was considered
what form and level the definitive anti-dumping meas-
ures would have to take in order to remove the effects of
injurious dumping.

(52) As far as other exporting producers are concerned, in
view of the high level of cooperation found, the highest
company-specific anti-dumping duty found should be
applied. This was found to be 55.6 %. This duty was not
adjusted within the meaning of Article 24(1) of the
above Regulation (EC) No 2026/97 since the company
on the basis of which it was established, i.e. Triveni, was
not found to have received any countervailable export
subsidies.

(48) Accordingly, as explained in recital 79 of the provisional
Regulation a non-injurious level of prices was calculated
at a level which covers the Community industry's cost of
production and a reasonable return on sales.

(53)

(49)

(50)

The comparison of the non-injurious price levels at the
same level of trade with the export price of the produ-
cers led to injury margins which ranged from around
20 % to more than 50 % expressed as a percentage of
the free-at-Community-frontier import price level. For
three Indian exporting producers this margin was below
the dumping margins.

The finding set out in recital 83 of the provisional
Regulation is hereby confirmed, i.e. all of the schemes
investigated have been found to constitute export subsi-
dies within the meaning of Article 3(4)(a) of the above
Regulation (EC) No 2026/97. As such, the subsidies can
affect the export prices of the Indian exporting produ-
cers,
thus leading to increased margins of dumping.
Therefore, and as stated in recitals 80 to 82 of the
provisional Regulation, the anti-dumping duties need to
the actual dumping margins
be adjusted to reflect
remaining after the imposition of
the countervailing
duties offsetting the effect of the export subsidies.

(51) On the basis of the above, the definitive duty rates,
expressed as a percentage of the cif Community border
price, customs duty unpaid, taking into account the
results of the parallel anti-subsidy proceeding, are as
follows:

the situation found during that

anti-dumping investigation. Therefore,

The individual duty rates specified in this Regulation
were established on the basis of the findings of the
they
present
reflect
investigation.
These duty rates are thus exclusively applicable to
imports of products originating
country
concerned and produced by the specific legal entities
mentioned. Products produced by any other company
not specifically mentioned in the operative part of this
including related entities, cannot benefit
Regulation,
from these rates and shall be subject to the residual duty
rate.

in the

(54) Any claim requesting the application of these individual
duty rates (e.g. following a change in the name of the
entity) should be addressed to the Commission forthwith
with all relevant information, in particular any modifica-
tion in the company's activities linked to production,
domestic and export sales associated with that name
change.

(J) COLLECTION OF THE PROVISIONAL DUTIES

(55)

In view of the amount of the dumping margins defin-
itively established for the exporting producers located in
India and in the light of the seriousness of the injury
is considered
caused to the Community industry,
necessary that the amounts secured by way of the provi-
sional Regulation be definitively collected to the extent
of the amount of definitive duties imposed, unless the
provisional duty rates are lower in which case the latter
should prevail,

it

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Official Journal of the European Communities

22. 7. 1999

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on imports of stainless steel wire with a diameter of
1 mm or more, containing by weight 2,5 % or more of nickel, excluding wire containing by weight 28 %
or more but no more than 31 % of nickel and 20 % or more but no more than 22 % of chromium, falling
within CN code ex 7223 00 19 (TARIC code 7223 00 19*90) and originating in India.

The rate of the definitive anti-dumping duty applicable to the net, free-at-Community-frontier price,

2.
before duty, shall be as follows:

Producer

Rate of duty
(%)

Taric additional
code

— Bhansali Bright Bars Pvt Ltd, C-8/3, TTC Industrial Area, Village — Pawne
Opposite PIL, Thane — Belapur Road, Navi Mumbai 400 705, India

0

A009

— Devidayal Industries Ltd, Gupta Mills Estate, Reary Road, Mumbai 400 010,

2,4

A010

India

— Indore Wire Company Ltd, Near Fort, Indore 452 006 (M.P.), India

16,5

— Isinox Steels Ltd, Indiasteel Complex, Railway Gate No 4, Antop Hill, Wadala,

Mumbai 400 037, India

— Isibars Ltd, Indiasteel Complex, Railway Gate No 4, Antop Hill, Wadala,

Mumbai 400 037, India

0

0

— Mukand Ltd, L.B.S. Marg, Kurla, Mumbai 400 070, India

10,1

— Raajratna Metal Industries Ltd, 909, Sakar - III, Nr Income Tax, Ahmedabad

380 014, Gujarat, India

— Venus Wire Industries Ltd, Block No 19, Raghuvanshi Mill Compound,

Senapati Bapat Marg, Lower Parel, Mumbai 400 013, India

— Macro Bars and Wires Pvt. Ltd, 702 Bombay Market Building, Taredo Road,

Mumbai 400 032, India

0

0

0

— Kei Industries Ltd, D-90, Okhla Industrial Area Phase-1, New Delhi, India

32,6

— Triveni Shinton International Ltd, Kanti Mansion, 6 Murai Mohalla, Indore,

55,6

452 001, (M.P.), India

A004

A002

A011

A003

A005

A006

A008

A020

A012

— All other Indian companies

55,6

A999

3.

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

4.
The individual duty rates (as opposed to the country-wide duty applicable to ‘others’) specified in this
Regulation are exclusively applicable to imports of products produced by the specific legal entity/ies
mentioned and originating in the country concerned. Products produced by any company not specified by
its precise name in the operative part of the Regulation cannot benefit from these rates.

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EN

Official Journal of the European Communities

L 189/25

Any claim requesting the application of these individual duty rates (e.g. following a change in the name of
the entity) should be addressed to the Commission (1) forthwith with all relevant information, in particular
any modification in the company's activities linked to production, domestic and export sales associated
with that name change. The Commission will, after consultation of the Advisory Committee, amend the
Regulation accordingly by updating the list of companies benefiting from individual duty rates.

Article 2

1.
The amounts secured by way of the provisional anti-dumping duties on imports of stainless steel
wires with a diameter of 1 mm or more originating in India under Regulation (EC) No 617/1999 (2) shall
be definitively collected at the rate of the duties definitively imposed. Amounts secured in excess of the
definitive rate of anti-dumping duties shall be released.

The provisions referred to in Article 1(4) shall also apply to the definitive collection of the amounts

2.
secured by way of the provisional anti-dumping duties.

The proceeding concerning imports of stainless steel wire with a diameter of 1 mm or more originating in
Korea shall be terminated.

Article 3

This Regulation shall enter into force on the day following that 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, 12 July 1999.

For the Council

The President

S. NIINISTÖ

(1) European Commission,

Directorate-General 1 - External Relations,
Directorate C,
DM 24 - 8/38,
Rue de la Loi/Wetstraat, 200,
B-1049 Brussels..

(2) OJ L 79, 24.3.1999, p. 13.