Proposal for a Council Regulation amending Regulations (EEC) No 2861/93, (EC) No 2199/94, (EC) No 663/96 and (EC) No 1821/98 concerning the imposition of definitive anti-dumping duties on imports of certain magnetic disks (3.5" microdisks) originating in Japan, Taiwan, the people's Republic of China, Hong Kong, the Republic of Korea, Malaysia, Mexico, the United States of America and Indonesia and Regulation (EC) No 1335/1999 reimposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5" microdisks) originating in Indonesia and produced and sold for export to the Community by PT Betadiskindo Binatama
Date: 1999-10-29
Institutions: European Commission
Subjects: anti-dumping duty, import, magnetic medium, new technology

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 29.10.1999
COM(1999)490 final

Proposal for a

COUNCIL REGULATION

amending Regulations (EEC) No 2861/93, (EC) No 2199/94, (EC) No 663/96
and (EC) No 1821/98 concerning the imposition of definitive anti-dumping duties
on imports of certain magnetic disks (3.5” microdisks) originating in Japan,
Taiwan, the People’s Republic of China, Hong Kong, the Republic of Korea,
Malaysia, Mexico, the United States of America and Indonesia and
Regulation (EC) No 1335/1999 reimposing a definitive anti-dumping duty on
imports of certain magnetic disks (3.5” microdisks) originating in Indonesia and
produced and sold for export to the Community by PT Betadiskindo Binatama

(presented by the Commission)

EXPLANATORY MEMORANDUM

This interim review was limited to a clarification of the product scope of the
Regulations imposing the anti-dumping measures concerned on imports of certain
magnetic disks (3.5” microdisks) originating in Japan, Taiwan, the People’s Republic
of China, Hong Kong, the Republic of Korea, Malaysia, Mexico, the United States of
America and Indonesia.

It is proposed to exclude certain specific microdisks with a storage capacity above
120 MB from the scope of the measures.

following a request

from
The review was initiated on 17 December 1998,
Sony Corporation and Fuji Photo Film Co Ltd to exclude a new 3.5” MFD, the
so-called “HiFD”, with a storage capacity of 200 MB, from the scope of the
anti-dumping measures imposed by Regulation (EEC) No 2861/93 on imports of
certain magnetic disks (3.5” microdisks) originating in Japan, Taiwan and the
People’s Republic of China. Subsequent
to the initiation, another producer,
Hitachi Maxell, made itself known and requested that one of its products, a 3.5” MFD
known as the “Superdisk LS-120”, with a capacity of 120 MB, also be excluded.

According to the two applicants, these new microdisks should be excluded from the
scope of the measures on the grounds that their physical characteristics and end uses
are so markedly different from the microdisks covered by the investigations that they
cannot be considered a single product together with other 3.5” microdisks.

It was decided to extend the review to cover all other existing measures on imports of
certain magnetic disks (3.5” microdisks).

After examination of the arguments presented by interested parties, the Commission
concluded that the exclusion of the ‘HiFD’ and the ‘Superdisk LS-120’ from the
scope of the measures is justified. They should be excluded on the grounds that, due
to new technologies used to achieve their much larger storage capacities, viz
“magnetic sector servo tracking” or “optically continuous servo tracking”,
their
physical characteristics differ sufficiently from those of conventional 3.5” MFDs,
which normally have a nominal capacity of 2 MB.

It should be noted that the Community industry which does not produce these types of
microdisks has raised no objections to their exclusion.

It is proposed to amend the Regulations concerned to exclude all 3.5” microdisks with
capacities of 120 MB or more and which incorporate either the “magnetic sector servo
tracking” technology of the HiFD, or the ‘optically continuous servo tracking’
technology of the Superdisk LS-120. It is further proposed that the amendment to the
Regulations should have retroactive effect to 17 December 1998, i.e. that date of
initiation of the review.

2

Proposal for a

COUNCIL REGULATION

amending Regulations (EEC) No 2861/93, (EC) No 2199/94, (EC) No 663/96
and (EC) No 1821/98 concerning the imposition of definitive anti-dumping duties
on imports of certain magnetic disks (3.5” microdisks) originating in Japan,
Taiwan, the People’s Republic of China, Hong Kong, the Republic of Korea,
Malaysia, Mexico, the United States of America and Indonesia and
Regulation (EC) No 1335/1999 reimposing a definitive anti-dumping duty on
imports of certain magnetic disks (3.5” microdisks) originating in Indonesia and
produced and sold for export to the Community by PT Betadiskindo Binatama

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
the
on protection against dumped imports
European Community1, and in particular Article 11(3) thereof,

from countries not members of

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

Whereas:

A. REQUEST FOR A REVIEW

(1)

(2)

A request for an interim review of Regulation (EEC) No 2861/932 by which
the Council imposed definitive anti-dumping duties on imports of certain
magnetic disks (3.5” microdisks) originating, inter alia, in Japan was received
from Sony Corporation and Fuji Photo Film Co Ltd, both located in Japan and
hereinafter referred to as “Sony” and “Fuji Film” respectively.

This request pursuant to Article 11(3) of Regulation (EC) No 384/96 claimed a
change in circumstances regarding the definition of the product concerned by
the proceeding in question to justify the initiation of a review. According to
the request, conventional 3.5” microdisks with a storage capacity of
1.44 megabytes and new generation 3.5” microdisks with a storage capacity of
200 megabytes could not be considered to form a single product and should
therefore be excluded from the scope of the existing anti-dumping measures.

1

2

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).
OJ L 262, 21.10.1993, p. 4.

3

(3)

(4)

(5)

As the request contained sufficient prima facie evidence, the Commission
decided to initiate an interim review3 of Regulation (EEC) No 2861/93. At the
same time, the Commission considered that its examination should encompass
all other existing measures imposed on the same product, and accordingly
decided to extend the review to also cover the measures applicable to imports
originating in Hong Kong, the Republic of Korea, Malaysia, Mexico, the
United States of America and Indonesia.

This interim review was limited to clarification of the product scope of the
Regulations imposing the measures.

B. EXISTING MEASURES

The measures currently in force are definitive anti-dumping duties in the form
of ad valorem duties imposed on certain magnetic disks (3.5” microdisks) by
the following Regulations:

-

-

-

-

-

Regulation (EEC) No 2861/93 imposing a definitive anti-dumping duty
on imports of certain magnetic disks (3.5” microdisks) originating in
Japan, Taiwan and the People’s Republic of China;

Regulation (EC) No 2199/944 imposing a definitive anti-dumping duty
on imports of certain magnetic disks (3.5” microdisks) originating in
Hong Kong and the Republic of Korea;

Regulation (EC) No 663/965 imposing a definitive anti-dumping duty
on imports of certain magnetic disks (3.5” microdisks) originating in
Malaysia, Mexico and the United States of America;

Regulation (EC) No 1821/986 imposing a definitive anti-dumping duty
on imports of certain magnetic disks (3.5” microdisks) originating
in Indonesia;

Regulation (EC) No 1335/1999 reimposing a definitive anti-dumping
duty on imports of certain magnetic disks (3.5” microdisks) originating
in Indonesia and produced and sold for export to the Community by
PT Betadiskindo Binatama7 (which resulted from a newcomer review
relating to that company).

C. PROCEDURE

(6)

The Commission gave the parties known to be concerned the opportunity to
make their views known in writing and to request a hearing.

3

4

5

6

7

OJ C 394, 17.12.1998, p. 21.
OJ L 236, 10.9.1994, p. 2.
OJ L 92, 13.4.1996, p. 1.
OJ L 236, 22.8.1998, p. 1. Regulation as amended by Commission Regulation (EC) No 2152/98,
OJ L 271, 8.10.1998, p. 9.
OJ L 159, 25.6.1999, p. 14

4

(7)

(8)

(9)

(10)

The Community industry, represented by the Committee of European Diskette
Manufacturers (DISKMA) on behalf of producers whose collective output of
3.5” microdisks represented a major proportion of Community production of
these microdisks, made its views known in writing.

The applicants for the review (Sony and Fuji Film) requested and were granted
hearings. Another exporting producer of high capacity microdisks in Japan,
Hitachi Maxell Ltd (hereinafter referred to as “Hitachi Maxell”), also made an
application to have a product manufactured by it excluded from the scope of
the measures.

One US exporting producer, Imation Europe B.V. (hereinafter referred to as
“Imation”), which opposed the exclusion of products from the scope of the
anti-dumping measures, requested and was granted a hearing.

Submissions were also received from the Hong Kong Economic and
Trade Office (an exporting country authority) and Memtek Europe Ltd which
is part of the Hanny Group of companies, a company based in Hong Kong
with production in the People's Republic of China, (hereinafter referred to
as “Hanny”).

D. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT

(11)

The product concerned by all of the Regulations is certain magnetic disks
(3.5” microdisks) used to record and store encoded digital information falling
within CN code ex 8523 20 90.

In the course of the investigation which led to the adoption of the measures
against Japan, Taiwan and the People’s Republic of China, the question of
whether the anti-dumping measures should also apply to higher storage
capacity 3.5” microdisks was examined. As
(9) of
Commission Regulation (EEC) No 920/938 imposing provisional measures,
one Japanese producer requested that 3.5” microdisks with a storage capacity
of four megabytes and above should be excluded from the scope of the
proceeding, but this request was rejected on the grounds that, at the time of the
adoption of Regulation (EEC) No 920/93:

stated in recital

-

-

despite some alleged differences
the manufacture of both four megabyte
3.5” microdisks and other 3.5” microdisks,
characteristics and end uses were the same; and

in the technology used for
capacity
and higher
their basic physical

all 3.5” microdisks were to a large extent, interchangeable.

As a result, all 3.5” microdisks, irrespective of their storage capacity, were
considered to be a single product and to be covered by the duties in force.

8

OJ L 95, 21.4.1993, p. 5.

5

These findings were confirmed by the Council
No 2861/93.

in Regulation (EEC)

E. ARGUMENTS PRESENTED FOR EXCLUDING PRODUCTS
FROM THE SCOPE OF THE EXISTING MEASURES

1.

Submission from Sony, Fuji Film and Hitachi Maxell

(12)

(13)

Sony and Fuji Film presented evidence that 3.5” microdisks with a storage
capacity of 200 megabytes, known as ‘HiFDs’, have been developed in a joint
venture. According to the two companies, HiFDs should be excluded from the
scope of the measures on the grounds that their physical characteristics and
end uses are so markedly different from the 3.5” microdisks covered by the
investigation that they cannot be considered a single product together with
other 3.5” microdisks.

Similarly, Hitachi Maxell presented evidence that 3.5”microdisks with a
storage capacity of 120 megabytes, known as the ‘Superdisk LS-120’, have
also been developed. According to the company,
the Superdisk LS-120
should also be excluded from the scope of the measures on the same grounds
as for HiFDs.

Physical characteristics

(14) According to these companies, the HiFD and Superdisk LS-120 microdisks,
the

3.5” microdisk

conventional

form,

have

while
sharing
following characteristics:

the

(i)

(ii)

Track densities and coding schemes: They have 200 MB or 120 MB
storage capacity respectively, giving 130 or 83 times the capacity of a
conventional 3.5” microdisk. This greater capacity is achieved through
enhancing the track density and linear recording density together with
more effective data coding schemes.

for

compared

135 TPI

inch
Tracking technology: They have 3450 or 2490 tracks per
(TPI) respectively,
conventional
to
3.5” microdisks. This higher density is achieved through the use of
“magnetic sector servo tracking” technology (in the case of HiFDs), or
“optically continuous servo tracking” technology (in the case of
to read from and write to the microdisk,
Superdisk LS-120s)
which respectively automatically lead the
either
In the case of
magnetically or optically,
conventional 3.5” microdisks, the position of the head of the drive is
set mechanically. Consequently, the HiFD and Superdisk LS-120 drive
units also utilise an entirely new type of magnetic head to that used in
conventional 3.5” microdisks.

to the targeted track.

reader head,

(iii)

Particle media: They have greater magnetic coercivity and a thinner
magnetic layer than that of conventional 3.5” microdisks.

6

(iv)

Compatibility: They cannot be read by a conventional 3.5” microdisk
drive. They have identification and recognition holes that are absent
from conventional microdisks and can only be used to full capacity
when inserted into a HiFD or Superdisk LS-120 drive unit
respectively. However, both HiFD and Superdisk LS-120 drive units
are backwardly compatible with conventional 3.5” microdisks since
they can read from and write to conventional microdisks. Such
conventional 3.5” microdisks do not, however, gain the storage
capacity of HiFD microdisks or Superdisk LS-120s when written to by
a HiFD or Superdisk LS-120 drive unit respectively.

(v)

Data transfer: They can be rotated at speeds of 3600 rpm or 720 rpm,
respectively, in their drives whereas a conventional 3.5” microdisk is
rotated at 300 rpm. This allows a data transfer rate of 3600 or
680 kilobytes per second, respectively, compared to a performance of
60 kilobytes per second for conventional 3.5” microdisks.

End uses

(15)

The companies concerned claimed that
the end uses of the HiFDs and
Superdisk LS-120s are fundamentally different from those of conventional
3.5” microdisks. Typically, they are used for the larger storage files such as
those created by audio, video, graphics and multimedia programs which
require the higher capacities and faster transfer
rate provided by both
high storage capacity 3.5” microdisks. These uses are far beyond the
capability of conventional 3.5” microdisks, which are typically used for
smaller working files and are therefore not interchangeable with the HiFD or
Superdisk LS-120.

Pricing

(16) According to the

applicant

the differences

in physical
companies,
characteristics between HiFDs and Superdisk LS-120s, on the one hand, and
conventional 3.5” microdisks on the other, are reflected in their respective
manufacturing costs and retail prices. The differences between 3.5”
microdisks and HiFDs or Superdisk LS-120s are underlined by the price
differential that exists between them. Indeed, this differential is such that
competition between 3.5” microdisks and HiFDs or Superdisk LS-120s does
not exist at any practical level.

2.

Other submissions

(17)

Submissions were received from the Hong Kong Economic and Trade Office
and from Hanny, which, although a producer of 3.5” microdisks, is not a
producer of higher capacity 3.5” microdisks. Both submissions argued that the
higher capacity 3.5” microdisks are not a like product with conventional
3.5” microdisks, and should therefore be excluded.

7

F. ARGUMENTS FOR NOT EXCLUDING PRODUCTS FROM THE

SCOPE OF THE EXISTING MEASURES – SUBMISSION
BY IMATION

(18) A submission was also presented by Imation which is a subsidiary of a
US-based company producing the Superdisk LS-120 in the United States for
sale on the Community market.
Imation cooperated with the previous
investigation which led to the imposition of anti-dumping duties on imports
from the United States, and has a company-specific zero anti-dumping
duty rate.

1.

Physical characteristics

(19) According to Imation,

the differences in memory capacity, design and
reading/writing process technology do not prevent products from belonging to
the same single category of product concerned, as long as the basic
characteristics and technology do not show significant differences. Both the
HiFD and Superdisk LS-120, it is claimed, share the same basic physical,
technical and/or chemical characteristics as conventional 3.5” microdisks.

(20)

This submission cited the DRAM Regulations extensively (Commission
Regulation (EEC) No 165/90 imposing a provisional anti-dumping duty on
imports of DRAMs originating in Japan9 and Council Regulation (EEC)
No 2112/9010 imposing a definitive anti-dumping duty on imports of DRAMs
originating in Japan). In that case, the Community took the view that the
similarities of DRAMs of different densities and processes outweighed their
differences in memory capacity, design and process technology.

(21)

Imation argued that the three basic technologies of memory enhancement
(particle media, track densities and coding schemes) for 3.5” microdisks have
remained the same for the last 25 years.

In relation to the particle media, it is argued that the many and continuing
improvements which have been made to the microdisk in terms of memory
and speed are all based on continuing refinements of the two key elements of
the size and shape of the magnetic particles in the magnetic layer, and on the
thickness of the magnetic layer.

Track densities have been improved through the use of servo tracking
technologies.

Methods of coding data have improved through the use of better
coding schemes.

OJ L 20, 25.1.1990, p. 5.

9
10 OJ L 193, 25.7.1990, p. 1. Regulation last amended by Regulation (EEC) No 2967/92, OJ L 299,

15.10.1992, p. 4.

8

The development of high capacity microdisks was stated to be an old
phenomenon, with previous attempts to produce such 3.5” microdisks. The
basic technology used, namely to store data on a magnetic medium, has
remained the same for both conventional 3.5” microdisks and high-capacity
microdisks. The size, dimensions, design, architecture and function of
conventional 3.5” microdisks and high-capacity microdisks were identical. It
was also argued that the servo tracking technology used in HiFDs has been
available to the industry for several years.

It was further argued that differences in construction and appearance were not
important; and that the different recognition holes on the higher capacity
3.5” microdisks were purely a functional aspect of their construction. The fact
that the HiFD and Superdisk LS-120 drives are backwardly compatible and
can be used to read from and write to conventional 3.5” microdisks is taken to
be a strong indication that the products, despite improvements in technology,
are not substantially different in basic technology and use.

2.

End uses

(22) As regards end-use, Imation stated that

the basic use of high-capacity
3.5” microdisks is to store data in a portable medium as is that of conventional
3.5” microdisks. Imation contested the view that the end-uses differ. The Sony
and Fuji Film claim that the differences in physical characteristics between
HiFDs and conventional 3.5” microdisks are reflected in their respective
manufacturing and retail prices was also rejected. According to Imation, the
retail price per megabyte is almost in a one-to–one relation between HiFDs
and 3.5” microdisks.

G. POSITION OF THE COMMUNITY INDUSTRY

(23)

The Community industry, represented by DISKMA, does not produce either
the HiFD or the Superdisk LS-120 and has indicated that it has no objection to
the exclusion of these products from the scope of the definitive anti-dumping
Regulations mentioned in recital (5), as long as both are distinguishable from
conventional 3.5” microdisks by the Community customs authorities and as
long as their exclusion does not allow evasion of the duties in force.

H. FINDINGS OF THE INVESTIGATION

1.

Dissimilarity of products

Physical characteristics

(24) As explained above, the storage capacities and track densities of the HiFD and
the Superdisk LS-120 are many times those of a conventional 3.5” microdisk.
The magnetic layers are thinner, with higher coercivity than that of
conventional 3.5” microdisks. New coding schemes, as well as technological
developments in the drive units for the HiFD and the Superdisk LS-120
allow for data transfer rates between 11 and 60 times those of conventional
3.5” microdisks.

9

(25)

is true,

the drive units needed to read from and write to these
In addition,
higher-capacity 3.5” microdisks are quite different from those of conventional
3.5”microdisk drives. The drive units for conventional 3.5” microdisks are not
the
compatible with the new higher-capacity microdisks. It
higher-capacity drives have been designed to be backwardly compatible with
conventional 3.5” microdisks. However, this backwards compatibility relies
wholly on the technology of the drive and not on the physical characteristics
of the microdisks themselves. This backwards compatibility is achieved by
having dual heads, one intended for
reading from and writing to
higher-capacity microdisks of the relevant type, and the other for reading from
the
and writing to conventional 3.5” microdisks.
backward compatibility of the higher-capacity microdisk drives is further
evidence of the two types of microdisk being a single product is therefore
refuted; the higher-capacity microdisk component of the drive head is not
backwardly compatible on its own.

Imation’s claim that

that

(26)

Finally, the investigation has shown that there are currently no 3.5” microdisks
available which would fall between the conventional 3.5” microdisk and the
HiFD and Superdisk LS-120.

End uses

(27)

(28)

(29)

(30)

It is acknowledged that, at the most basic level, all types of 3.5” microdisk are
used for the recording of electronic data, even though the HiFD and the
Superdisk LS-120 can be used to store electronic files far beyond the
capacity of conventional 3.5” microdisks. Therefore, it is considered that the
issue of end uses for conventional 3.5” microdisks and the HIFD and the
Superdisk LS-120 is not sufficient on its own to conclude that conventional
3.5” microdisks and HiFDs and Superdisk LS-120s are a single product.

2.

Conclusion

The investigation has shown that a clear dividing line in terms of physical and
technical characteristics exists between conventional 3.5” microdisks and
high-capacity microdisks. The product at issue in the review request represents
a leap in technology from the microdisks
to the previous
investigations. The physical characteristics of the higher-capacity microdisks,
as well as the technology needed to use them, are such as to distinguish them
as separate products from conventional 3.5” microdisks. The fact that the new
higher-capacity microdisks look similar to conventional 3.5” microdisks is not
reason for maintaining the higher-capacity
considered to be sufficient
microdisks within the scope of the Regulations subject to review.

subject

In the light of the foregoing, the Council considers that the exclusion of the
HiFD and the Superdisk LS-120 from the scope of the measures imposed by
the Regulations subject to review is justified.

The Council therefore concludes that all 3.5” microdisks with capacities of
120 MB or more and which incorporate either the magnetic sector servo
tracking technology of the HiFD, or the optically continuous servo tracking
technology of the Superdisk LS-120, should be excluded from the scope of the

10

anti-dumping measures imposed by the Regulations mentioned with effect
from the date of publication of the Notice of Initiation of this review,
i.e. 17 December 1998. Interested parties, including the Community industry,
were informed of these findings. After being informed of the above facts and
representations in
conclusions,
writing, concerning the exclusion of the HiFD and the Superdisk LS-120 from
the scope of the measures imposed by the Regulations subject to review.
However, no information or argument was provided which could, on
examination, cause the Council to reverse the above conclusions.

Imation made further

representatives of

(31)

Importers of the 3.5” microdisks which have been excluded from the scope of
the anti-dumping measures in question may submit applications to the relevant
customs authority for reimbursement of the anti-dumping duties paid from
17 December 1998 to the date of entry into force of this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Article 1(1) of Regulation (EEC) No 2861/93 is replaced by the following:

“1.

anti-dumping duty is hereby imposed on imports of
A definitive
3.5” microdisks used to record and store encoded digital computer information
falling within CN code ex 8523 20 90 (Taric code 8523 20 90*40) and
originating in Japan, Taiwan and the People’s Republic of China, with the
exception of 3.5'' microdisks based on optically continuous servo tracking
technology or magnetic sector servo tracking technology with a storage
capacity of 120 MB or more.”

Article 2

Article 1(1) of Regulation (EC) No 2199/94 is replaced by the following:

“1.

A definitive
anti-dumping duty is hereby imposed on imports of
3.5” microdisks used to record and store encoded digital computer information
falling within CN code ex 8523 20 90 (Taric code 8523 20 90*40) and
originating in Hong Kong and the Republic of Korea with the exception of
3.5'' microdisks based on optically continuous servo tracking technology or
magnetic sector servo tracking technology with a storage capacity of 120 MB
or more.”

Article 3

Article 1(1) of Regulation (EC) No 663/96 is replaced by the following:

“1.

A definitive
anti-dumping duty is hereby imposed on imports of
3.5” microdisks used to record and store encoded digital computer information
falling within CN code ex 8523 20 90 (Taric code 8523 20 90*40) and
originating in Malaysia, Mexico and the United States of America, with the

11

exception of 3.5'' microdisks based on optically continuous servo tracking
technology or magnetic sector servo tracking technology with a storage
capacity of 120 MB or more.”

Article 4

Article 1(1) of Regulation (EC) No 1821/98 is replaced by the following:

“1.

A definitive
anti-dumping duty is hereby imposed on imports of
3.5” microdisks used to record and store encoded digital computer information
falling within CN code ex 8523 20 90 (Taric code 8523 20 90*40) and
originating in Indonesia, with the exception of 3.5'' microdisks based on
optically continuous servo tracking technology or magnetic sector servo
tracking technology with a storage capacity of 120 MB or more.”

Article 5

Article 1(1) of Regulation (EC) No 1335/1999 is replaced by the following:

“1.

A definitive anti-dumping duty is hereby imposed on imports of 3.5”
microdisks used to record and store encoded digital computer information
falling within CN code ex 8523 20 90 (Taric code 8523 20 90*40) originating
in Indonesia and produced and sold for export
to the Community by
PT Betadiskindo Binatama, with the exception of 3.5'' microdisks based on
optically continuous servo tracking technology or magnetic sector servo
tracking technology with a storage capacity of 120 MB or more.”

Article 6

This Regulation shall enter
Official Journal of the European Communities.

into force on the day of

its publication in the

It shall apply as from 17 December 1998.

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

Done at Brussels,

For the Council
The President

12