Commission Regulation (EC) No 1646/1999 of 27 July 1999 initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed by Council Regulation (EC) No 2861/93 on imports of certain magnetic disks (3,5 in. microdisks) originating in Taiwan and the People's Republic of China by assembly operations in the Community and making imports of microdisk parts subject to registration
Date: 1999-07-27
Institutions: European Commission
Subjects: China, Taiwan, anti-dumping duty, import, magnetic medium

28. 7. 1999

EN

Official Journal of the European Communities

L 195/9

COMMISSION REGULATION (EC) No 1646/1999

of 27 July 1999

initiating an investigation concerning the alleged circumvention of anti-dumping measures imposed
by Council Regulation (EC) No 2861/93 on imports of certain magnetic disks (3,5 in. microdisks)
originating in Taiwan and the People’s Republic of China by assembly operations in the
Community and making imports of microdisk parts subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1), as last
amended by Regulation (EC) No 905/98 (2), and in particular
Articles 13 and 14 thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. REQUEST

the

The Commission has received a request, pursuant to
Article 13(3) of Regulation (EC) No 384/96 (hereinafter
referred to as ‘the Basic Regulation'), to investigate the
anti-dumping duties
alleged circumvention of
imposed by Council Regulation (EC) No 2861/93 (3) on
imports of certain magnetic disks (3,5 in microdisks)
(hereinafter referred to as ‘microdisks') originating in
Taiwan and the People’s Republic of China by imports
of microdisk parts originating in the same countries,
which are allegedly used to assemble microdisks in the
Community, to make imports of the main parts subject
to registration by the customs authorities, pursuant to
Article 14(5) of the Basic Regulation, and to propose to
the Council, if justified, the extension of the above anti-
dumping duties to imports of microdisk parts from the
same countries.

B. APPLICANT

The request was lodged on 14 June 1999 by the
Committee
European Diskette Manufacturers
(Diskma).

of

C. PRODUCT

The products through which the alleged circumvention
is taking place are microdisk parts originating in Taiwan
and the People’s Republic of China and used in the
Community:
assembly

of microdisks

the

in

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 128, 30.4.1998, p. 18.
(3) OJ L 262, 21.10.1993, p. 4.

disks

(‘cookies')

(CN codes
coated

shells (CN code ex 3926 90 99), clamshells (CN code
ex 8523 20 90), adhesive rings (CN code ex 3926 90 99),
ex 3920 69 00 and 3919 10 31),
lifters
(CN
magnetic
code
(CN codes
ex 8523 20 90),
ex 7326 90 97 and ex 7616 10 00), shutters (CN codes
ex 3926 90 99,
ex 7326 90 97 and ex 7616 10 00),
springs (CN code ex 7320 20 89), write protector tabs (CN
code ex 3926 90 99) and liners (CN code ex 5603 12 90).
The CN codes are those in which the products are
currently classifiable and are given for information only.

(‘hubs')

centre

cores

D. EVIDENCE

(4)

The request contains sufficient evidence, in accordance
with Article 13(3) of the Basic Regulation, to initiate an
investigation to examine whether
the antidumping
duties on imports of microdisks originating in Taiwan
and the People’s Republic of China are being circum-
vented by imports of microdisk parts from these coun-
tries used in assembly operations in the Community.

(5)

The evidence is as follows:

(a) subsequent to the imposition of the measures, at
least one assembly operation using parts from the
People’s Republic of China and/or Taiwan started or
substantially
request
increased. Moreover,
provides prima facie evidence that the value of the
Taiwanese and Chinese parts constitute 60 % or
more of the total value of the parts of the assembled
product, and that
the value added to the parts
in, during the assembly or completion
brought
operation in the Community,
is not greater than
25 % of the manufacturing cost;

the

(b) furthermore, the request contains evidence which
shows that the prices at which microdisks assembled
from Chinese and Taiwanese parts are being sold in
the Community are lower than the non-dumped
level of the export price;

(c) finally, the applicant claims that the alleged circum-
vention is severely undermining the remedial effects
of the existing anti-dumping duties in terms of the
quantities and prices of the assembled like product.

L 195/10

EN

Official Journal of the European Communities

28. 7. 1999

(6)

(7)

(8)

(9)

(10)

E. PROCEDURE

In the light of the evidence contained in the request, the
Commission has concluded that
sufficient evidence
exists
to justify the initiation of an investigation
pursuant to Article 13(3) of the Basic Regulation, and to
make imports of microdisk parts from the countries
under investigation subject to registration in accordance
with Article 14(5) of the said Regulation.

(i) Questionnaires

In order to obtain the information it deems necessary
for its investigation, the Commission will send question-
naires to the microdisk assembler named in the request
and to its related exporter in Taiwan. Questionnaires will
also be sent
to exporting producers in the People’s
Republic of China and in Taiwan which cooperated in
the original
investigation. Information, as appropriate,
may be sought from Community producers. The author-
ities of Taiwan and the People’s Republic of China will
be notified of the initiation of the investigation and
provided with a copy of the request and the question-
naire.

Other interested parties should request a copy of the
questionnaire as soon as possible, as they are also
subject to the time limit specified in this Regulation.
Any request for questionnaires must be made in writing
to the address mentioned below and should indicate the
name, address,
the
requesting party.

telephone and fax numbers of

(ii) Certificates of non-circumvention

In accordance with Article 13(4) of the Basic Regulation,
certificates exempting the imports of
the product
concerned from registration or measures may be issued
when the importation does not constitute circumven-
tion.

Since the issue of these certificates requires the prior
authorisation of the Community institutions, requests
for such authorisations should be addressed by inter-
ested importers to the Commission as early as possible
in the course of the investigation. The Commission may
grant such requests only after a thorough appraisal of
their merits. Requests must be accompanied by a
complete reply to the questionnaire referred to at recital
(8) above.

F. REGISTRATION

In view of the great variety and large number of micro-
disks parts, registration of imports, pursuant to Articles
13(3) and 14(5) of
the Basic Regulation, should be
limited to the main parts used in microdisk assembly
operations, namely magnetic coated disks (‘cookies'),
clamshells, shells, shutters and centre cores (‘hubs'),
falling
ex 8523 20 90,
ex 3926 90 99, ex 7616 10 00 and ex 7326 90 97
respectively. Registration will ensure that, should the

within

codes

CN

investigation confirm the allegation of circumvention,
the duties applicable to imports of microdisks origin-
ating in Taiwan or in the People’s Republic of China can
be extended to the aforementioned main parts and
levied retroactively from the date of initiation of the
proceeding.

(11)

(12)

G. TIME LIMIT

In the interest of sound administration, a period should
be fixed within which interested parties, provided that
they can show that they are likely to be affected by the
results of
the investigation, may make their views
known in writing. A period should also be fixed within
which interested parties may make a written request for
a hearing and show that there are particular reasons why
they should be heard. As the said time limit applies to
all interested parties, including parties not named in the
request or not known from the previous investigation, it
is consequently in the interest of these parties to contact
the Commission without delay.

H. NON-COOPERATION

In cases in which any interested party refuses access to,
or otherwise does not provide, necessary information
within the time limit, or significantly impedes the invest-
igation, findings, affirmative or negative, may be made
in accordance with Article 18 of the Basic Regulation,
on the basis of the facts available. Where it is found that
any interested party has supplied false or misleading
information, the information shall be disregarded and
use may be made of facts available,

HAS ADOPTED THIS REGULATION:

Article 1

An investigation, pursuant to Article 13(3) of Regulation (EC)
No 384/96, of imports of the following microdisk parts: shells
(CN code ex 3926 90 99); clamshells (CN code ex 8523 20 90);
lifters (CN codes
adhesive rings (CN code ex 3926 90 99);
ex 3920 69 00 and ex 3919 10 31); magnetic coated disks
(‘cookies') (CN code ex 8523 20 90), centre cores (‘hubs') (CN
codes ex 7326 90 97 and ex 7616 10 00), shutters (CN codes
ex 3926 90 99, ex 7326 90 97 and 7616 10 00), springs (CN
(CN code
code
ex 3926 90 99) and liners (CN code ex 5603 12 90), originating
in Taiwan and the People’s Republic of China, is hereby initiated.

ex 7320 20 89), write

protector

tabs

Article 2

Customs authorities are hereby directed, pursuant to Articles
l3(3) and 14(5) of Regulation (EC) No 384/96, to take the
the following
appropriate steps to register the imports of
microdisk parts, originating in Taiwan and the People’s
Republic of China, in order to ensure that, should the anti-
dumping duties applicable to imports of microdisks from these
countries be extended to the aforementioned imports, they may
be collected from the date of such registration:

28. 7. 1999

EN

Official Journal of the European Communities

L 195/11

Parts

CN code

Imports shall not be subject to registration where they are
accompanied by a customs certificate issued in accordance with
Article 13(4) of Regulation (EC) No 384/96.

Magnetic coated disks (‘cookies')

ex 8523 20 90
Taric code 8523 20 90*20

Article 3

Clamshells

Shells

Centre cores (‘hubs')

Shutters

ex 8523 20 90
Taric code 8523 20 90*30

ex 3926 90 99
Taric code 3926 90 99*40

ex 7326 90 97
Taric code 7326 90 97*40
ex 7616 10 00
Taric code 7616 10 00*20

ex 3926 90 99
Taric code 3926 90 99*50
ex 7326 90 97
Taric code 7326 90 97*50
ex 7616 10 00
Taric code 7616 10 00*30

Interested parties must, if their representations are to be taken
into account during the investigation, make themselves known,
present their views in writing, submit information and apply to
be heard by the Commission within 40 days of the date of
the
publication of this Regulation in the Official
European Communities. This time limit applies to all interested
including parties not named in the request.
parties,

Journal of

Any information relating to this matter, any request for a
for
hearing or for a questionnaire as well as any request
authorisation of certificates of non-circumvention should be
sent to the following address:
European Commission,
Directorate General for External Relations:
Commercial Policy and Relations with North America, the Far
East, Australia and New Zealand
Directorate I-C

Rue de la Loi/Wetstraat 200
B-1040 Brussels
Fax (32-2) 295 65 05.

Article 4

Registration shall expire nine months following the date of
entry into force of this Regulation.

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

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

Done at Brussels, 27 July 1999.

For the Commission

Leon BRITTAN

Vice-President