Commission Regulation (EC) No 967/2000 of 8 May 2000 imposing a provisional anti-dumping duty on imports of hairbrushes originating in the People's Republic of China, the Republic of Korea, Taiwan and Thailand, and terminating the proceeding concerning imports of hairbrushes originating in Hong Kong
Date: 2000-05-08
Institutions: European Commission
Subjects: anti-dumping duty, hairdressing and beauty care, import, manufactured goods, originating product, third country

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Official Journal of the European Communities

9.5.2000

COMMISSION REGULATION (EC) No 967/2000

of 8 May 2000

imposing a provisional anti-dumping duty on imports of hairbrushes originating in the People's
Republic of China, the Republic of Korea, Taiwan and Thailand, and terminating the proceeding
concerning imports of hairbrushes originating in Hong Kong

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 7 and 9 thereof,

After consulting the Advisory Committee,

Whereas:

(5)

(6)

(7)

(1)

(2)

(3)

(4)

A. GENERAL INFORMATION

On 13 August 1999 the Commission announced, by a
notice (hereinafter referred to as ‘notice of initiation’)
published in the Official Journal of the European Commu-
nities (3), the initiation of an anti-dumping proceeding
with regard to imports of hairbrushes originating in the
People's Republic of China (hereinafter referred to as
‘China’), Hong Kong, the Republic of Korea (hereinafter
referred to as ‘Korea’), Taiwan and Thailand.

The proceeding was initiated following a complaint
lodged in June 1999 by the FEIBP (Fédération Europé-
enne des Industries de la Brosserie et de la Pinceauterie)
on behalf of Community producers representing more
than 70 % of the Community production of hairbrushes.
The complaint contained evidence of dumping of the
said product and of material injury resulting therefrom,
which was considered sufficient, after consultation, to
justify the initiation of a proceeding.

The Commission officially advised the complainant
Community producers, exporting producers and impor-
ters, suppliers and users known to be concerned, as well
as associations concerned and representatives of
the
exporting countries, of the initiation of the proceeding.
Interested parties were given the opportunity to make
their views known in writing and to request a hearing
within the time limit set in the notice of initiation.

In order to allow exporting producers from China to
submit a claim for market economy status or individual
the Commission sent
treatment
market economy status and individual treatment claim

they so wished,

if

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 128, 30.4.1998, p. 18.
(3) OJ C 231, 13.8.1999, p. 2.

forms to the Chinese exporting producers known to be
concerned. Claims for market economy status were
received from three exporting producers and claims for
individual treatment from seven exporting producers.

The representatives of Hong Kong made their views
known in writing, requested a hearing within the above
time limit and were granted the opportunity to be heard.
An unrelated importer who so requested within the time
limit was also granted the opportunity to be heard.

The Commission sent questionnaires
to all parties
known to be concerned. Replies were received from 11
Community producers, 11 exporting producers in the
the
countries
Community.

concerned

importers

and

10

in

The Commission sought and verified all the information
it deemed necessary for the purposes of a provisional
determination of dumping,
injury and Community
interest and carried out investigations at the premises of
the following companies:

(a) Community producers

F r a n c e

Lardenois SA, Hermes

Société générale de brosserie, Mouy

Société Medicis, Selestat

G e r m a n y

Braun & Wettberg GmbH, Beerfelden

J. B. Keller Söhne Bürstenfabrik, Todtnau

I t a l y

Ippa, Padua

Ponzini SpA, Milan

S p a i n

Cepilleria Bamar, SA, Segorbe

DOLS Industrial de Peluquería, Barcelona

Industrias Fushima, SL, Santander

U n i t e d K i n g d o m

Mason Pearson Bros. Ltd, London

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(b) Exporting producers

T a i w a n

Tong Fong Brush Factory Co. Ltd, Taipei

C h i n a

Kai Fat Brush Factory Ltd, Hong Kong (1)

Lee Chung Kee Plastic Brush Factory Ltd, Hong
Kong (1)

Long Sure Industries Ltd, Hong Kong (1)

Lung Tain (Brothers) Company Ltd, Hong Kong (1)

National Brushes & Plastic Manufactory Ltd, Hong
Kong (1)

Ningbo Kai Fat Brush Co. Ltd, Ningbo

Yang Hau (Xiamen) Home Product Ltd, Xiamen

(9)

In the framework of the dumping investigation with
regard to imports from China a verification visit was
also carried out in Argentina. This country was origi-
nally envisaged as a possible analogue country for
the determination of normal value for
imports
originating in China.

H o n g K o n g

No genuine Hong Kong producers cooperated.

K o r e a

Kumduk Brush Co., Inc., Seoul

Kyung Sung Plastic & Brushes Co., Seoul

Seodoo Industrial, Co., Seoul

T h a i l a n d

Ly Long Brush Co., Nakornprathom

(c) Unrelated importers in the Community

F r a n c e

Babyliss SA, Montrouge

Cork International SA, Thiais

Dollfus Mieg et Cie (DMC), Loos

FDG International, Orly

I t a l y

Paglieri, SpA, Alessandria

S p a i n

Centros Comerciales Continente SA, Madrid

Centros Comerciales Pryca SA, Barcelona

(1) Companies established under Hong Kong law with a production

facility in mainland China.

U n i t e d K i n g d o m

Albyn of Stonehaven, Stonehaven

Cork International, Nottingham.

(8)

The investigation of dumping and injury covered the
period from 1 July 1998 to 30 June 1999 (hereinafter
referred to as ‘the investigation period’ or ‘IP’). With
respect to the trends relevant for the injury assessment,
the Commission analysed data covering the period from
1 January 1996 to 30 June 1999.

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

The product concerned is hairbrushes, currently classifi-
able within CN code 9603 29 30. Hairbrushes may be
mounted either by mechanical or manual process onto
backs made of synthetic, wood or other materials, be
filled with natural, mixed or plastic tufts, or inserted pins
or pins cast with the body of the brush. Their shapes
can be pneumatic, cylindrical, rectangular/oval, twisted
in wire or skeleton. In spite of these differences and
although hairbrushes may be designed for various types
of hair, their purpose and use is always the brushing,
styling or untangling of human hair. Therefore, given
that their basic physical and technical characteristics and
uses are the same, they are considered to form one
single product for the purpose of this proceeding.

2. Like product

(10)

It was also found that

The Commission found that the basic physical and tech-
nical characteristics and uses of hairbrushes imported
from the countries concerned are similar to the product
produced and sold by the Community industry in the
Community.
the hairbrushes
produced and sold on the domestic market of Korea,
which was chosen as analogue country for China, were
similar to the hairbrushes produced and exported to the
Community from China. It was therefore concluded that
the hairbrushes produced in the countries concerned
and exported to the Community,
the hairbrushes
produced and sold on the Korean domestic market, and
those produced and sold by the Community industry on
the Community market, are a like product within the
meaning of Article 1(4) of Regulation (EC) No 384/96
(hereinafter ‘the basic Regulation’).

C. FINDINGS WITH REGARD TO HONG KONG

(11)

The investigation revealed that the volume of exports of
the product concerned to the Community originating in
this country were below de minimis level. Indeed, once
the imports statistics were revised by the customs
authorities of one of the Member States, exports from
Hong Kong amounted to about 600 000 pieces only,
which represent 0,6 % of total imports and 0,5 % of the

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Community market. On this basis, it has been decided
that the present investigation should be terminated with
respect to this country. The Community industry has
been informed about this course of action and has not
submitted any information that would indicate that such
termination was not justified.

(12) However, given that some of the exporting producers in
China are legally based in Hong Kong and that actual
manufacturing activities in Hong Kong are not very
important,
the Commission will advise the national
customs authorities in the Community to monitor the
development of imports of hairbrushes originating in
Hong Kong. Furthermore,
the Commission will also
inform Hong Kong authorities of the fact that a non-
justified increase of the volume of imports originating in
this country could lead the Commission services to
initiate a new investigation of these practices.

D. DUMPING

1. China

1.1. Normal value

Market economy treatment

(13)

(14)

(15)

to Article 2(7)(b) of

Pursuant
the basic Regulation,
normal value in the case of imports from China shall be
determined on the basis of the price or constructed
value of those producers which can show that they meet
the criteria laid down in Article 2(7)(c),
i.e. that they
operate under market economy conditions. Producers
requesting market economy treatment were required to
complete a specific claim form detailing all the informa-
tion requirements concerning the companies' ownership,
management control and determination of commercial
and business policies.

Three companies applied for market economy treat-
ment. On the basis of their replies to the claim form, it
was found that two of them were not operating under
market economy conditions. Indeed, it was found that
they were not allowed to sell on the domestic market. It
was therefore concluded that these companies did not
meet the criteria set out in the first indent of Article
2(7)(c) of the basic Regulation and could not, therefore,
be granted market economy treatment.

The third company was found to be related to one of
the above two companies which already failed the
market economy test. As companies belonging to the
same group should be treated in the same way, market
economy treatment could not be granted to this
company.

(16)

The companies concerned were informed of the conclu-
sions and given the opportunity to submit comments.
No comments were received.

(17)

(18)

(19)

Analogue country

In accordance with Article 2(7) of the basic Regulation,
in order to establish normal value for the Chinese
companies an analogue market economy country had to
be selected for the establishment of normal value. For
this purpose, the complainant Community industry had
suggested Argentina.
initiation the
Commission indicated that Argentina was envisaged as
an analogue country. Within the time limit specified in
the notice of initiation, no objections were received with
regard to this proposal.

In the notice of

The producer in Argentina, mentioned in the complaint,
was contacted by the Commission and agreed to coop-
in the course of the verification visit
erate. However,
conducted at
the
level of prices paid on the Argentine market or the costs
of production could not be properly verified. Moreover,
domestic sales in Argentina appeared to be not repres-
entative of the Chinese exports.

the Argentine producer's premises,

Consequently, the Commission sought other possibili-
ties. As Korea was the only market economy country
involved in the proceeding which had sales on the
domestic market, the Commission examined whether
Korea constituted an appropriate choice. It was found
that the Korean domestic market was reasonably repres-
entative in terms of the product models sold and level of
competition. Therefore, in accordance with Article 2(7)
of the basic Regulation, the Commission considered that
Korea
choice of
constituted the most
analogue country in this case.

reasonable

(20) As a result and as explained in more detail in recitals 26
to 29, normal value was established on the basis of the
domestic prices or the constructed normal value of the
cooperating Korean producer. Provisionally, the normal
value was based on the 20 most basic products of the
four best-selling models (pneumatic, round, oval/rectan-
gular and web).

1.2. Export price

(21) All seven Chinese exporting producers claimed indi-
vidual treatment, i.e. the determination of an individual
dumping margin on the basis of the individual export
prices of the companies.

(22)

(23)

The Commission verified whether
these companies
enjoyed in fact and in law a sufficient degree of indepen-
dence from the Chinese State with regard to their export
prices.

The companies concerned were able to demonstrate to
the Commission that they were sufficiently independent
of the Chinese authorities. In particular,
it was noted
that all companies were either wholly or majority
foreign owned. They could also demonstrate to the satis-
faction of the Commission the lack of interference by
the State with regard to the export sales. In addition, no
restrictions on the repatriation of capital and profit were
found, currency conversions were carried out at the
normal exchange rate and no risk of circumvention was
perceived. Consequently, it was decided to grant indi-
vidual treatment to all of these companies.

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(24)

The investigation showed that all export sales of the
product concerned were made to unrelated customers in
the Community, or to independent traders in China for
re-export to the Community. The export prices were
therefore calculated in accordance with Article 2(8) of
the prices
the basic Regulation,
actually paid or payable
independent
customers.

i.e. on the basis of
by

these

(29) On this basis the weighted average margin of dumping
amounts to 48,2 %. This margin applies provisionally to
all cooperating companies which were granted indi-
vidual treatment (i.e. those listed in recital 7 above).
Parties concerned are hereby invited to comment on the
selection of the sample immediately after the imposition
of provisional measures within the time limit specified
in Article 2 of this Regulation.

1.3. Comparison

Dumping margin for non-cooperating exporters

(25)

For the purposes of a fair comparison due allowance, in
the form of adjustments, was made for differences
claimed under Article 2(10) of the basic Regulation and
demonstrated to affect price comparability. On this
basis, adjustments were made with regard to rebates,
transport,
loading and ancillary
insurance, handling,
costs, credit and commissions.

(30)

The comparison of Eurostat figures with the data on the
volume of exports to the Community supplied by the
seven cooperating Chinese exporting producers showed
that the level of cooperation was extremely low (25,9 %)
and was considered insufficient. It was therefore decided
provisionally to establish the dumping margin on the
basis of a comparison of the weighted average Korean
normal value (EUR 0,97) with the Eurostat export price
(EUR 0,42),

i.e. EUR 0,55 per unit.

1.4. Dumping margin

Sampling

(26)

(27)

(28)

initiation it was announced that
In the notice of
sampling could be used in view of the apparent size and
complexity of the proceeding. Eight companies came
forward and a sample of five companies was selected.
Since a significant part of the selection, consisting of
two companies with significant export volumes, did not
cooperate, it was considered that the sample had failed.
Therefore, the Commission had to find an alternative
approach.

In view of the combination of, on the one hand, the
considerable number of different models of hairbrushes
exported from China and, on the other hand, the fact
that as many as seven companies requested and were
granted individual treatment the Commission has, for
the purpose of provisional measures, established the
margin of dumping for all companies on the basis of an
alternative method of sampling.

This was done on the basis of a sample which included
the export transactions of the four best-selling models
(pneumatic, round, oval/rectangular and web) sold by
i.e. Yang Hau and Kai Fat,
the two largest exporters,
representing about 75 % of the total exports concerned
by the seven companies. Also, for the purpose of estab-
lishing normal value, the Commission used provisionally
the prices charged on the Korean domestic market for
the normal
comparable product
value was based on the 20 most basic products of the
four best-selling models (pneumatic, round, oval/rectan-
gular and web). These were at the low end of the market
and represented more than 80 % of the total Korean
domestic sales.

types. Provisionally,

2. Korea

2.1. Normal value

(31)

(32)

(33)

for each of

In order to establish normal value the Commission first
determined,
the cooperating exporting
producers, whether the total volume of the domestic
sales of the product concerned was representative in
accordance with Article 2(2) of the basic Regulation, i.e.
whether these sales represented 5 % or more of the sales
volume of
the product concerned exported to the
Community. Only one Korean producer, out of three,
met this requirement.

The Commission then examined for
this exporting
producer whether total domestic sales of each product
model constituted 5 % or more of the sales volume of
the same model exported to the Community.

For those product models meeting the 5 % test, it was
established whether sufficient sales had been made in the
ordinary course of trade in accordance with Article 2(4)
of the basic Regulation.

(34) Where, per product model, the volume of domestic sales
above unit cost represented at least 80 % of sales and
where the weighted average price was equal to or higher
than the weighted average cost, normal value was estab-
the weighted average prices
lished on the basis of
actually paid for all domestic sales. Otherwise, normal
value was established on the basis of
the weighted
average prices actually paid for the remaining profitable
domestic sales, provided that the volume of profitable
transactions was not lower than 10 % of sales.

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(35)

For those product models where the volume of domestic
sales was lower than 5 % of the volume exported to the
Community, or where the volume of profitable domestic
sales was less than 10 %, domestic sales of those product
models were considered insufficient within the meaning
of Article 2(4) of the basic Regulation. For such models,
normal value was constructed on the basis of the costs
of manufacturing incurred by the exporting producer
concerned for the exported product model in question
plus a reasonable amount for sales, general and adminis-
trative expenses (hereinafter ‘SG & A’) and profits in
accordance with Article 2(3) and (6) of the basic Regula-
tion. On the same basis, normal value was constructed
for the two exporting producers which did not have,
within the meaning of Article 2(2) of the basic Regula-
tion, any representative domestic sales at all.

(36)

For each exporting producer, the SG & A were based on
the representative domestic sales of the only Korean
exporting producer with domestic sales, and the profit
margin on the representative domestic sales made in the
ordinary course of trade by the same producer.

(41)

2.2. Export price

(37)

Export sales to the Community were made directly to
independent importers and export prices were estab-
lished on the basis of the prices actually paid or payable
by these importers in accordance with Article 2(8) of the
basic Regulation.

2.3. Comparison

(38)

For the purposes of a fair comparison due allowance, in
the form of adjustments, was made for differences
claimed under Article 2(10) of the basic Regulation and
demonstrated to affect price comparability. On this
basis, adjustments were made with regard to rebates,
transport,
loading and ancillary
costs, credit and commissions, where justified.

insurance, handling,

2.4. Dumping margin

General method

Residual

(40)

The comparison of Eurostat figures with the data on the
volume of exports to the Community supplied by the
three cooperating Korean exporting producers showed
that the level of cooperation was 66,4 % and this was
considered insufficient. The duty was therefore set at the
level of the average of the 50 most dumped models
found in that country. As a result the dumping margin
was set at 42,6 %.

3. Taiwan

3.1. Normal value

the basic Regulation.

The only cooperating exporting producer in Taiwan did
not have any domestic sales. Therefore the normal value
was constructed on the basis of the costs of manufac-
turing incurred by the exporting producer concerned for
the exported product model in question plus a reason-
able amount for SG & A and profits in accordance with
Article 2(3) and (6) of
In the
absence of other cooperating exporting producers in
Taiwan, or data concerning the general category of
product in the company concerned and in the country
of origin, it was provisionally decided that the SG & A
should be based on the representative domestic sales of
the Korean producer with domestic sales, and the profit
margin on the representative domestic sales made in the
ordinary course of trade by the same Korean producer.
This method was considered reasonable in accordance
with Article 2(6)(c) of the basic Regulation.

3.2. Export price

(42)

Export sales to the Community were made directly to
independent importers and export prices were estab-
lished on the basis of the prices actually paid or payable
by these importers in accordance with Article 2(8) of the
basic Regulation.

(39)

In accordance with Article 2(10) and (11) of the basic
Regulation and in the absence of a significantly differing
pattern of export prices, the dumping margins were
established on the basis of a comparison between the
weighted average Korean normal value per product
model and the weighted average export price at ex-
factory level for the same product model and at the
same level of trade.

Individual dumping margin

Kumduk Brush Co., Inc.:

Kyung Sung Plastic & Brushes Co.:

Seodoo Industrial, Co.:

19,5 %

5,0 %

12,9 %.

3.3. Comparison

(43)

(44)

For the purposes of a fair comparison due allowance, in
the form of adjustments, was made for differences
claimed under Article 2(10) of the basic Regulation and
demonstrated to affect price comparability. On this
basis, adjustments were made with regard to rebates,
transport,
loading and ancillary
insurance, handling,
costs, credit and commissions.

The exporting producer in Taiwan requested an adjust-
ment for differences in the level of trade. They claimed
that some of their export sales were OEM sales. This
adjustment could not be granted since the exporting
producer was not able to provide evidence that these
sales were effectively OEM sales.

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3.4. Dumping margin

2. Sampling

General method

2.1. Procedure

(45)

The same methodology as described in recital 39 was
used.

(51)

Individual dumping margin

Tong Fong Brush Factory Co. Ltd:

3,1 %

Residual

(46)

The comparison of Eurostat figures with the data on the
volume of exports to the Community supplied by the
sole cooperating Taiwanese exporting producer showed
that the level of cooperation was 45,5 %, which was
considered insufficient. Therefore the methodology used
to calculate the residual anti-dumping margin in recital
40 for Korea was also applied in the case of Taiwan. The
residual margin is 11,9 %.

4. Thailand

(47) Only one Thai exporting producer made itself known,
the
Ly Long Brush. The company was informed of
missing data and given an opportunity to provide
further information. However, this company still did not
provide essential information such as export sales data
and cost of sales and was therefore considered as non-
cooperating. The company was informed of the reason
for finally rejecting the information and about
the
consequences of non-cooperation.

(48)

Pursuant to Article 18(1) of the basic Regulation normal
value and export price were determined on the basis of
facts available given in the complaint. In this respect the
adjustment for level of trade contained in the complaint
was duly adjusted and then was applied to the normal
value. Pursuant to Article 18(5) of the basic Regulation
the information included in the complaint were checked
by reference with official import statistics and were in
line with information obtained from other interested
parties during the investigation.

(49) As a result the dumping margin was set at 48,4 %.

E. COMMUNITY INDUSTRY

1. The complainant

(50)

The complaint has been lodged on behalf of producers
representing a major proportion, in this case more than
70 %, of
the total Community production of hair-
brushes.

In view of the large number of Community producers
supporting the complaint, and in conformity with
Article 17(1) of the basic Regulation, the Commission
announced in the notice of initiation of the proceeding
its intention to select a sample of Community producers
based on the largest representative volume of production
and sales of the Community industry which could be
reasonably investigated within the time available. For
these purposes, the Commission requested the complai-
to provide information concerning production,
nant
sales and employment for the product concerned for its
individual members supporting the complaint during the
year 1998.

(52) On the basis of

information the Commission
selected 13 companies, operating in five Member States,
to which questionnaires were addressed.

this

2.2. Selection criteria

(53)

In the selection, the following criteria were considered:

— location of company with the selection focusing on

the main producing Member States,

— company size and production structure with the
selection aiming at obtaining a variation among the
companies selected.

2.3. Sampled Community producers

(54) Apart from the 11 Community producers listed above
under 7(a),
two other Community producers were
selected in the sample. In the course of the investigation,
these two companies,
i.e. Coronet-Werke Heinrich
Schlerf GmbH and Acca Kappa, were excluded from the
sample as they were unable to provide the requested
data, although expressly supporting the proceeding.
Furthermore,
the information provided by Industrias
Fushima could not be fully taken into consideration at
the provisional stage of the investigation, since it could
not be aggregated to the information obtained from the
other Community producers which were selected in the
sample and provided the requested data. On-the-spot
verification visits were carried out in the premises of
nine out of the 11 companies mentioned under 7(a)
selected in the sample and having completed the ques-
tionnaire. These 11 companies account for the largest
representative volume of production and sales of the
Community industry which could be reasonably investi-
gated within the time available.

3. Definition of the Community production

(55) Within the Community, the product concerned is manu-

factured by:

— producers on behalf of which the complaint was
lodged and which were selected in the abovemen-
tioned sample (‘the sampled Community producers’),

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— producers on behalf of which the complaint was
lodged and which were not included in the sample,
and

— other Community producers which are not complai-
these producers opposed the

nants. None of
proceeding (‘the other Community producers’).

(56)

The Commission has assessed whether all the above
companies could be considered as Community produ-
cers within the meaning of Article 4(1)(a) of the basic
Regulation, since some of them also import hairbrushes
from the exporting countries concerned.

(57) Given that sufficiently detailed information was not
available for the totality of the above companies, this
analysis has been carried out at the level of the sampled
Community producers.

In this respect, the investigation has shown that some of
the sampled Community producers import hairbrushes
from the exporting countries concerned. These imports
are explained by the need for the sampled Community
producers to complete their product range, as well as by
the necessity to defend themselves against low-priced,
dumped imports in order to maintain their market
share. Furthermore, this import activity does not affect
the primary interest of these companies which is in their
own production of hairbrushes and not in importing.
Indeed, these imports do not represent any significant
part of the sales of the sampled Community producers
concerned.

is thus considered that

the sampled Community
It
producers form part of the Community production of
hairbrushes within the meaning of Article 4(1)(a) of the
basic Regulation.

The investigation did not bring to light any elements
which would lead to a different conclusion as concerns
the rest of the abovementioned companies which manu-
facture hairbrushes in the Community. Therefore, it is
considered that all the companies mentioned in recital
55 are Community producers within the meaning of
Article 4(1)(a) of the basic Regulation.

(58)

(59)

(60)

(61)

F. INJURY

1. Preliminary remarks

(62) On the basis of the findings regarding Hong Kong set
out above, imports of hairbrushes originating in Hong
Kong are no longer considered as imports concerned.
Therefore, only imports originating in the other coun-
tries concerned were
the
purposes of the injury and causality assessment set out
below.

taken into account

for

(63)

(64)

(65)

In view of the fact that sampling had been used with
regard to the Community industry, the injury has been
assessed both on the basis of information collected at
the level of the entire Community industry and on the
basis of information collected at the level of the sampled
Community producers.

The Community industry is characterised by a high
number of operators, in many cases small and medium-
sized companies, and by the fact that companies can
easily stop or reduce manufacturing activities since the
machinery can be sold or relatively easily used for other
Indeed, during the period analysed for the
products.
injury assessment,
i.e. January 1996 to June 1999, a
number of companies stopped or significantly reduced
their manufacturing activities for hairbrushes.

this

that

effect

Furthermore,
the
also had the
Community industry, during the investigation period,
consisted of those companies which were strong enough
to survive the competition from dumped imports and
which to a certain extent benefited from the demise of
those other which had not. In some cases, the activity,
machinery and/or employees of the companies that had
stopped or reduced their activities were absorbed by
companies which have been selected in the above
sample. In 1998 and during the investigation period,
two Member States
i.e. France and
Germany, were affected by these developments. Conse-
quently, the assessment of injury has to be seen in the
light of the fact that the surviving complaining compa-
nies of the Community industry may have benefited,
possibly only temporarily, from the disappearance of
other companies.

in particular,

4. Definition of the Community industry

2. Community consumption

The complaining Community producers (i.e. both the
sampled and non-sampled but supporting Community
producers as described above) fulfil the requirements of
representativeness within the meaning of Article 5(4) of
the basic Regulation, since they account for more than
70 % of the total Community production of hairbrushes
and are therefore deemed to constitute the Community
industry within the meaning of Article 4(1) of the same
Regulation.

(66)

Between 1996 and the investigation period, the apparent
Community consumption increased by 33 %,
from
around 81 million units to around 107 million units. In
more detail, it significantly increased between 1996 and
1997, i.e. from around 81 million units to around 102
million units, remained stable between 1997 and 1998
and increased again between 1998 and the investigation
period from around 102 million to around 107 million
units.

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3. Imports concerned

(73)

3.1. Cumulative assessment

(67)

The Commission has examined the situation,
taking
account of the conditions of Article 3(4) of the basic
Regulation.

(68) On this basis, it has been provisionally established that
as regards imports originating in China, Korea, Taiwan
and Thailand, the dumping margins found are more
than de minimis, the volumes of imports are not negli-
gible and that a cumulative assessment appears appro-
priate in view of the conditions of competition both
between the imports and between the imports and the
like Community product. Moreover, import prices have
all undercut the sales prices of the Community industry,
while using the same or similar channels of trade. For
these reasons, it is provisionally concluded that imports
originating in the aforementioned countries concerned
should be assessed cumulatively.

(74)

To this effect, a comparison between the exported hair-
brushes and those manufactured in the Community by
the sampled Community producers was made. The
exporting producers' prices have been duly adjusted to a
cif Community frontier and duty paid level, whereas the
sampled Community producers' prices have been
adjusted to an ex-works level. Within each of the catego-
ries of hairbrushes as determined in the investigation,
the weighted average prices of the sampled Community
producers have been compared to the weighted average
export prices of each exporting producer concerned.

The undercutting margins
countries
concerned, expressed as a percentage of the sampled
Community producers' prices, exceed 45 %.

each of

for

4. Situation of the Community industry

4.1. Data relating to the Community industry as a

whole

3.2. Volume and market share

Preliminary remark

(69)

(70)

four

imports

from the

countries
The volume of
concerned increased by 46 %,
from around 57
million units in 1996 to around 84 million units in the
investigation period.
increased significantly
Imports
between 1996 and 1997, i.e. by 34 %, remained stable
between 1997 and 1998 and increased by a further 8 %
between 1998 and the investigation period.

i.e.

The share of the Community market held by imports
from the countries concerned significantly increased
between 1996 and 1997 from around 71 % to around
75 %, and has continued to increase since then,
accounting for around 78 % during the investigation
period.

3.3. Prices

Price evolution

(75) Where recourse is made to sampling within the
Community industry, it is the Commission's practice to
establish certain injury indicators such as production,
capacity, stocks, sales, market share and employment for
the Community industry as a whole and to establish
those injury indicators relating to the performances of
i.e. prices, costs of production,
individual companies,
profits, on the basis of
information found for the
sampled Community producers.

(76) Given the structure and size of the companies which
constitute the Community industry, in view of the diffi-
culties to collect information on stocks at the level of
the Community industry as a whole it was possible to
establish this economic indicator at the level of the
sampled Community producers only. Given that these
producers account for a representative volume of sales
and production of the total Community industry, the
findings established for them can,
in any event, be
considered to be representative for the Community
industry as a whole.

(71) Average import price of

the imports concerned, as
provided by Eurostat, decreased from EUR 0,51 per unit
in 1996 to EUR 0,46 per unit during the investigation
period, i.e. by 10 %. A similar decreasing trend is found
when analysing individually the average import prices of
each country concerned.

Price undercutting

(72)

The Commission also examined whether the exporting
producers in the countries concerned were undercutting
the sales prices of the sampled Community producers
during the investigation period.

(77)

(78)

out

carried

investigation

The
sampled
Community producers has shown that their production,
capacity, sales, market share and employment data are
properly reflected in the information collected at the
level of the Community industry.

the

for

Production

Between 1996 and the investigation period, production
decreased from around 20 million units to around 19
million units, i.e. by around 3 %. The most significant
decrease in production took place between 1997 and
1998. Even though production increased again between
1998 and the investigation period, it did not regain the
level of 1996.

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Production capacity

4.2. Data

relating

to

the

sampled Community

year by

(79) Maximum production capacity, as measured in units
which could be manufactured per
the
Community industry, increased from 72 million units in
1996 to 77 million units during the investigation
period, i.e. an increase of 7,5 %. This increase was not
the result of investments in new production runs, but
reflects the results of the rationalisation of the produc-
tion and modernisation of the machinery mentioned
above.

(80)

Capacity utilisation decreased from around 28 % in
1996 to around 25 % in the investigation period. The
level of utilisation of the capacity in relation to the
product concerned remains low, since the Community
industry has changed its product mix in favour of prod-
than hairbrushes where competition by
ucts other
imported products is less pronounced.

producers

Stocks

(85)

Stocks of the sampled Community producers signifi-
cantly decreased between 1996 and 1998, i.e. by 15 %,
and increased again between 1998 and the investigation
period to a level slightly exceeding that of 1996. In
overall terms, stocks of the sampled Community produ-
cers remained relatively stable between 1996 and the
investigation period. It is to be outlined that the stock
level in the investigation period, i.e. around 1,5 million
units represents roughly only the monthly sales volume
of the Community industry and this in a business where
stocks are necessary in order to reply promptly to the
demand.

Sales volume and market share

Prices

(81) While Community consumption rose by around 33 %
between 1996 and the investigation period, the sales
volume of the Community industry decreased by around
28 %, from around 18 million units in 1996 to around
13 million units during the investigation period.
It
decreased significantly between 1996 and 1998, i.e. by
31 %, and has slightly increased between 1998 and the
investigation period, remaining however at a very low
level when compared with 1996.

(82)

The corresponding share of
the Community market
decreased from around 22 % in 1996 to around 12 %
during the investigation period.
It decreased sharply
between 1996 and 1998, i.e. by 45 % and has steadily
decreased since then.

Employment

Between 1996 and the investigation period, there were
several closures of Community producers as well as a
reduction of the labour force linked to the production of
hairbrushes. They led to an overall decrease of the work-
force for hairbrushes in the Community from 790
employees in 1996 to 770 employees during the invest-
igation period.

(83)

(84)

(86)

The analysis of the development of prices of the sampled
Community producers shows that in overall terms they
have remained relatively stable between 1996 and the
investigation period. The
sales price was
EUR 1,60 per unit in 1996 and decreased to EUR 1,59
per unit during the investigation period.

average

increase,

(87) As a result of the increase of the low-priced imports
originating in the countries concerned as from 1996, the
majority of the sampled Community producers main-
tained their prices whilst other sampled Community
producers reduced them. Furthermore, also as a reaction
to that
the sampled Community producers
stopped the production and sales of certain lower end
models in favour of higher end models in market niches
where prices were higher and direct competition from
the dumped imports was less pronounced. This strategy
had a direct impact on the profitability of the sampled
Community producers which rose to slightly above
break-even after 1997. In spite of this strategy, prices
slightly decreased, even though it might have been
expected that prices could increase.

Investments

This trend reflected the fact
that certain companies
which manufactured mostly hairbrushes in the past have
tried to adapt their product range in favour of other
products not concerned by the current proceeding.
These other products,
toothbrushes, bath
brushes, shaving brushes, cosmetic brushes, belong also
to the toiletry sector and competition of imports is less
pronounced with respect to them.

such as

(88)

Between 1996 and the investigation period, the sampled
Community producers increased their investments from
around EUR 132 000 to around EUR 334 000. The
most significant increase was between 1996 and 1998,
reflecting the fact
that certain sampled Community
producers absorbed the activities and machinery of other
companies which stopped manufacturing hairbrushes in
the Community.

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Profitability

(89)

that

Between 1996 and the investigation period the profit-
ability of the sampled Community producers rose from
around – 0,2 % in 1996 to around 0,49 % during the
investigation period. The fact
these producers
managed to reach a profitability of slightly above break-
even should be seen in the light of their abovementioned
decision to stop production and sales of certain lower
end models, in favour of certain market niches where
prices were higher and direct competition from the
dumped imports was less pronounced. However, this
strategy has not prevented a reduction in sales volume
and market share which started to have negative effects
on the financial results during the investigation period.
Given the economies of
in this
industry, this strategy however can only be used to a
certain extent and the Community industry needs a crit-
ical mass of production of standard products enabling it
to maintain a sufficient sales volume in the long term in
order to cover its fixed costs and to reach a certain level
of profits.

scale which exist

(90) Moreover, as mentioned above, the sampled Community
producers are amongst those companies which were
strong enough to survive the competition from dumped
imports and which to a certain extent benefited from the
demise of those others which had not. Therefore, they
may have benefited from the disappearance of other
companies, meaning
relatively positive
development as regards profitability could have been
overestimated.

their

that

5. Conclusions on injury

(91)

The examination of the abovementioned factors shows
that between 1996 and the investigation period, the
dumped imports increased significantly in terms of
volume and market share, reaching around 78 % of the
Community market during the investigation period and
the Community industry were
that
sales prices of
substantially undercut by
imports
concerned, with price undercutting margins exceeding
45 % in all cases.

those of

the

(92)

in particular since 1997,
Furthermore, between 1996,
the
the situation of
and the investigation period,
Indeed, during this
Community industry deteriorated.
period,
it suffered a decrease in production, capacity
utilisation, sales volume, market share and employment.

(93) Although investments of

the sampled Community
producers increased, and their profitability situation
slightly improved to around break-even,
the invest-
igation has shown that the slight improvement in terms
of
financial results is principally attributable to the
decision of these sampled Community producers, faced
to the low priced imports, to discontinue production
and sales of certain lower end models,
in favour of
higher end models in market niches where prices were

higher and direct competition from the dumped imports
was less pronounced. Therefore, it is considered that the
sales prices of the sampled Community producers would
have significantly decreased in case they had kept on
manufacturing all product models and, consequently,
their profitability situation would have deteriorated.

(94) Apart from the fact that such strategy as mentioned
above is not viable in the medium and long term, even
this strategy did not allow the Community industry to
maintain or regain market share, the evolution of both
sales volume and market share still being negative in a
context of significant expansion of
the Community
market for hairbrushes.

(95)

It is therefore concluded that the Community industry
has suffered material

injury.

G. CAUSATION

1. Introduction

(96) According to Article 3(6) and (7) of the basic Regula-
tion,
the Commission examined whether imports of
hairbrushes originating in the countries concerned have
caused injury to the Community industry to a degree
that enables it to be classified as material. Known factors
other than the dumped imports, which could at the
same time have injured the Community industry, were
also examined to ensure that possible injury caused by
these other factors was not attributed to the dumped
imports.

(97)

(98)

2. Effect of the dumped imports from the countries

concerned

In examining the effects of the dumped imports, it was
found that, between 1996 and the investigation period,
the significant increase in the imports of hairbrushes
originating in the countries concerned, by around 46 %,
and their high share of
the Community market, of
around 78 % during the investigation period, coincided
with a deterioration of the situation of the Community
the Community market
industry, whose
decreased from around 22 % to around 12 %, i.e. by 10
percentage points.

share of

Sales prices of the Community industry have been signif-
icantly undercut by those of the dumped imports which,
given their strong market position, led the price evolu-
tion. Indeed, there is considerable competition on the
market for hairbrushes and, on the demand side, there is
supermarket
an important presence of wholesalers,
chains
significant
purchasing power. Thus, the evolution of the sampled
Community producers' prices shows that they slightly
decreased between 1996 and the investigation period,
whilst the decision of the Community industry, when

and big stores which have

a

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Official Journal of the European Communities

9.5.2000

facing dumped imports, to stop production and sales of
certain lower end models,
in favour of higher end
models where prices were higher and direct competition
from the dumped imports was less pronounced, should
have enabled it to increase its sales prices. This situation
leads to the conclusion that the Community industry has
suffered price suppression.

(99) At the same time, the Community industry was not able
to benefit from the significant growth of the Community
market, and in a context of market expansion by 33 %
between 1996 and the investigation period,
its sales
volume decreased by 28 %, leading to a loss of market
share of 10 percentage points during the investigation
period.

(100)

It is therefore considered that the pressure exerted by the
imports concerned in the form of price undercutting as
well as their strong position on the market in terms of
sales volume and market share caused a price suppres-
sion for the Community producers and a significant loss
in terms of sales volume, leading to a loss of market
share.

3. Effects of other factors

(101)

contributed to the

In accordance with Article 3(7) of the basic Regulation,
the Commission examined whether factors other than
the dumped imports from the country concerned might
have
the
Community industry.
In particular the behaviour of
other Community producers, imports from third coun-
in technology and the export
tries, developments
performance
the Community
industry were analysed.

and productivity of

suffered by

injury

Other Community producers

(102) As

regards production and

the other
Community producers, they have decreased in terms of
volume between 1996 and the investigation period. The
same trend was found as concerns their market share
during the same period of time.

sales of

Imports from other third countries

than 2 %,

(103) During the investigation period, only imports origin-
ating in one of the third countries had a share of the
Community market greater
i.e. Norway.
Nevertheless, even if
these imports were above 2 %
during the investigation period, it has been found that
in
no significant production for hairbrushes exists
Norway. Therefore, it is highly likely that imports from
this country actually originate in one of the countries
concerned by the current proceeding, more in particular
in China, given the overall strong market position of this
country.

(104) As to average prices of imports from Norway, they do
not seem to be reliable, since these prices differ signifi-
cantly, in particular in 1998 and during the investigation
period, from the average prices of hairbrushes origin-

ating in any of the countries concerned or in any of the
other third countries.

(105) As regards imports originating in Hong Kong,

it was
found during the investigation that exports of hair-
brushes to the Community originating in this country
were below de minimis level during the investigation
period.

(106) Finally, the market share of imports originating in third
countries other
than Norway and Hong Kong has
steadily decreased between 1996 and the investigation
period, i.e. from 3 % to 2,23 %, and their average prices
during the same period have remained at levels which
were higher than those of the imports originating in the
countries concerned.

Competitiveness and export performance of the Community
industry

(107)

In relation to the competitiveness and productivity of
the Community industry, it has been established that the
Community industry has tried to maintain its produc-
tion and sales levels between 1996 and the investigation
period. It has stopped production and sales of certain
product models, in favour of some others in order to
maintain a certain level of sales and competitiveness.

the
investigation period,
(108) Between 1996 and the
Community industry has
furthermore maintained a
stable level of sales in export markets where it was
likewise in direct competition with the exporting produ-
cers concerned, such as in the US and Japanese market,
where demand exists for high quality products manufac-
tured by the Community industry.

4. Conclusions on causation

(109) The negative situation of the Community industry coin-
cided with an increase in the imports from the countries
concerned and a substantial price undercutting by these
imports.

(110) Given the particularly strong position of the imports
concerned, no other factors have been identified which
could have contributed to the injury suffered by the
Community industry. In particular, as concerns the other
Community producers, given that their production, sales
volume and market share have decreased between 1996
and the investigation period, they did not contribute to
the injury suffered by the Community industry. As to
imports from other third countries,
in view of their
market share during the investigation period which was
very low in relation to that of the imports concerned,
and also in view of their average prices which seemed to
be higher than those of the imports concerned during
the investigation period, it must be ruled out that these
imports have caused injury to the Community industry.

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(111)

It is therefore provisionally concluded that the material
injury suffered by the Community industry has been
caused by imports of hairbrushes originating in the four
countries concerned.

H. COMMUNITY INTEREST

(112)

to a number of

In order to assess the Community interest, the Commis-
sion carried out an investigation into the likely effects of
the imposition/non-imposition of anti-dumping meas-
ures on the economic operators concerned. Specific
questionnaires were sent
interested
parties which were deemed to be directly concerned by
the product
investigation, namely
to the
suppliers of raw materials for hairbrushes, unrelated
importers
and traders dealing with the product
concerned. The Bureau européen des unions de consom-
mateurs, i.e. the European consumers association (here-
inafter referred to as ‘BEUC’) was likewise invited to
comment.

subject

1. The Community industry

Structure of the Community industry

(113) The Community industry is mainly composed of small
and medium-sized companies. The production process is
highly automated and capital
intensive. Substantial
economies of scales are achieved when manufacturing
large volumes of the same model.

Degree of development of new products: Community
producers have developed new models of hairbrushes in
order to remain in the business by offering new prod-
ucts where competition from third countries is initially
very low.

Export performance: exports of the product concerned
by the Community industry have remained relatively
stable at around 7 million units between 1996 and the
investigation period.

Possible effects of taking measures

(117)

It can be expected that, firstly, the Community industry
will increase its share of the Community market as a
consequence of the imposition of anti-dumping meas-
ures. This is fully supported by the existence of a signifi-
cant production capacity. Secondly, as it can be expected
that the utilisation of the capacity will increase, this will
lead to an increase in production, which in turn will
allow the Community producers to reduce unit costs.
Concerning prices,
it can be expected that prices will
moderately increase, although not in parallel to any
anti-dumping duty. In conclusion it is expected that the
increase in production and sales, on the one hand, and
the decrease in unit costs, on the other hand, will allow
Community producers to regain profitability.

(114) Hairbrushes are a consumer product with a large variety
of models. Although some models of hairbrushes have
been manufactured for many years, this product is also
subject to fashion changes and to demand for limited
quantities only,
the market, such
in niche areas of
as
for hairdressers and luxury
products.

specialised products

(118)

(115) The last years have seen a significant restructuring of the
Community industry, due to the fact that some compa-
nies decided to stop completely or to reduce manufac-
turing of hairbrushes. Some companies were taken over,
whereas some others replaced their own production
with imports, mainly from the countries concerned.

Possible effects of not taking measures

the economic situation of

If measures are not taken, it is expected that the down-
ward trend observed for the period between 1996 and
the investigation period will continue. In this respect, a
the
further erosion of
Community industry, and more in particular of its sales
volume and market position would endanger
this
activity with the likely result of company closures and
job losses.
sampled
Community producers indicate that the economic situa-
tion over the past years has been sustained with an
effort to become competitive again and to regain market
share. Should the present situation continue in the
future, it is expected that the companies would not be
able to remain present in the sector.

Information provided by the

Viability of the Community industry

(116)

In spite of the finding of material injury, the Community
industry appears to be viable and competitive. This
provisional assessment is based on an appreciation of
the following elements:

it

is

to note

the
important
Restructuring:
Community industry has rationalised its production and
modernised its machinery as it was found for the
sampled Community producers,
even
increased its production capacity by rendering the
existing plants more efficient.

it has

thus

that

(119) As the workforce for hairbrushes is being reduced, the
is no longer replaced and the expertise
skilled staff
linked to the manufacturing of
this product would
disappear. Furthermore, the pressure on the market to
manufacture lower-priced products leads to the use of
low-cost raw materials, i.e. at the expense of the quality.
the
This
Community industry which has enjoyed a worldwide
reputation in this sector for many years and has there-
fore continued to use raw materials of high quality
although trying to offer its products at competitive
prices.

situation is particularly prejudicial

for

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Official Journal of the European Communities

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2. Suppliers of raw material for hairbrushes

small so that these importers and traders will not face a
significant threat to their business.

(120) Community interest questionnaires were sent to more
than 20 suppliers of raw materials for hairbrushes, i.e.
synthetic fibres, etc., which
bristles, wood, plastic,
mainly sell to the Community industry but also to some
of the exporting producers. Only one supplier cooper-
ated in the investigation.

(126) The above justifies the provisional conclusion that anti-
dumping measures, if any, will most likely not have a
decisive impact on the unrelated importers, and this
especially since they do not deal exclusively with the
product concerned but with a wide range of products.

(121) The investigation has shown that there are two different
kinds of suppliers of raw materials for hairbrushes.
There are, on the one hand, large companies for which
the delivery of raw material for hairbrushes does not
represent a significant portion of
their total activity
which consider that
they are not concerned by the
current proceeding. On the other hand, there are small
and medium-sized companies which claimed not to have
the resources to reply to the questionnaire.

(122) The effect of any anti-dumping duties on these suppliers
of raw materials will be different. For the first category
of suppliers, any anti-dumping measures on hairbrushes
will most likely not have any impact as reflected by the
lack of cooperation in the investigation. Nevertheless,
should anti-dumping measures be imposed, a positive
the measures may be expected for those
impact of
suppliers belonging to the group of small and medium-
sized companies for which hairbrushes do represent an
important part of their activity.

3. Unrelated

importers

and

traders

in

the

Community

(123) As regards the unrelated importers and traders of hair-
brushes in the Community, more than 30 questionnaires
were sent to these companies. Limited cooperation was
obtained from unrelated importers of
the product
concerned in the Community. Indeed, only nine replies
were received, some of them being incomplete.

(124) For these companies, no employment or any significant
investment were directly
related to the product
concerned. Indeed, as regards the unrelated importers,
the investigation has shown that none of these impor-
ters deals exclusively with the product concerned but
also with a number of other products. As to traders,
most of these companies are big stores, supermarket
chains, etc., for which the product concerned represents
a minimum part of their activity only.

(125) Furthermore,

in view of

the substantial number of
sources of supply on this market, any price increase due
to any anti-dumping measures is likely to be moderate
and thus carried over to the customers of the importers
and traders. Furthermore, the cost increases for some of
the importers, which import hairbrushes from exporting
producers with low dumping margins, will be relatively

4. Consumers

(127) BEUC did not cooperate and did not submit any
comments, although expressly invited to do so. Never-
theless, in order to evaluate the possible impact of anti-
dumping duties on consumers,
the following factors
have been taken into account.

(128) On the assumption that exporting producers subject to
high anti-dumping duties would discontinue
their
exports to the Community market because their prod-
ucts are not of such quality and performance that they
can compete with the products of
the Community
industry and those of the other exporting producers at
fair prices, they could be replaced by exports from the
countries concerned subject
In this
respect it should be noted that the average anti-dumping
duty for the remaining known exporting producers
would be moderate. In addition, experience shows that
in a case like the present where the trade has high
mark-ups, the amount of the duties paid will not be
passed over mechanically to the consumers. Further-
more, the consumer purchases may shift to products
manufactured by the Community industry.

to lower duties.

(129) Given the level of the duty rates proposed for a number
of the exporting producers concerned, the high number
of competing producers in the Community, and the
existence of imports from other third countries, it is also
unlikely that the measures would lead to an overall price
increase for hairbrushes in the Community.

5. Competition and trade distorting effects

(130) With respect to the effects of possible measures on
competition in the Community, it appears likely that a
the exporting producers concerned will
number of
continue to sell
their models albeit at non-injurious
prices, as they have a strong market position. Therefore,
there will be still a considerable number of competitors
on the market, and, as stated above, in view of the large
number of producers in the Community and imports
from other third countries, as well as the transparency of
the market, users will continue to have the choice of
different suppliers of the product concerned at reason-
able prices.

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(131) On the basis of the above, it is therefore concluded that
competition will most likely remain strong after the
imposition of anti-dumping measures. There will be an
important number of actors in the market which will be
able to satisfy the demand, offering a wide range of
the imposition of any anti-
product models. Thus,
dumping duties is unlikely to significantly limit
the
choice of the consumer or weaken competition.

6. Conclusion on Community interest

(132) Given the above reasons, it is considered that there are
no compelling reasons against the imposition of anti-
dumping duties.

I. PROPOSED MEASURES

1. Injury elimination level

(133)

In view of the conclusions reached a with regard to
injury, causation and Community interest,
dumping,
provisional measures
to
prevent further injury being caused to the Community
industry by the dumped imports.

should be taken in order

(134) For establishing the level of duty, account has been
taken of the dumping margins found and of the amount
of the duty necessary to eliminate the injury sustained
by the Community industry.

(135)

In order to establish the level of the duty adequate to
remove the injury caused by dumping, it is first neces-
sary to consider a reasonable minimum pre-tax profit
required by the Community producers in order
to
remain competitive.
It has been found that a profit
margin of 5 % constitutes an appropriate minimum,
taking into account the need for long-term investments.
This level of profits is also the one that the Community
industry could reasonably be expected to make in the
absence of injurious dumping.

(136) The necessary price increase was then determined on the
basis of a comparison of the weighted average import
price, as established for the undercutting determinations
the different
above, with the non-injurious price of
models
sold by the Community industry on the
Community market. The non-injurious price has been
obtained by deducting from the sales price of
the
Community industry its average actual profit and by
adding the abovementioned profit margin of 5 %. Any

difference resulting from this comparison was then
expressed as a percentage of the total cif import value,
and these differences were in all cases above the
dumping margins found.

2. Proposed provisional anti-dumping duty

(137) As explained above, in all cases the injury elimination
levels were higher than the dumping margins found. In
conformity with Article 7(2) of the basic Regulation, the
provisional duty imposed should correspond to the
i.e. the dumping margin.
lower margin,

(138) With respect to the non-cooperating exporting produ-
cers in China, in order to ensure the efficiency of the
measures, given the extremely low degree of coopera-
tion,
it is considered appropriate to impose an anti-
dumping duty in the form of a specific amount per unit
amounting to EUR 0,55 per unit.

(139) The individual company anti-dumping duty rates speci-
fied in this Regulation were established on the basis of
the findings of the present investigation. Therefore, they
reflect the situation found during that investigation with
respect to these companies. These duty rates (as opposed
to the country-wide duty applicable to ‘all other compa-
nies’) are thus exclusively applicable to imports of prod-
ucts originating in the country concerned and produced
by the companies and thus by the specific legal entities
mentioned. Imported products produced by any other
company not specifically mentioned in the operative
part of
this Regulation with its name and address,
including entities related to those specifically mentioned,
cannot benefit from these rates and shall be subject to
the duty rate applicable to ‘all other companies’.

(140) Any claim requesting the application of these individual
following a
company anti-dumping duty rates (e.g.
change in the name of the entity or following the setting
up of new production or sales entities) should be
addressed to the Commission (1) forthwith with all rele-
vant information, in particular any modification in the
company's activities linked to production, domestic and
export sales associated with e.g. that name change or
that change in the production and sales entities. The
Commission,
if appropriate, will, after consultation of
the Advisory Committee, amend the Regulation accord-
ingly by updating the list of companies benefiting from
individual duty rates.

J. FINAL PROVISION

(141)

In the interests of sound administration, a period should
be fixed within which the interested parties may make
their views known in writing and request a hearing.
Furthermore, it should be stated that the findings made
for the purposes of this Regulation are provisional and
may have to be reconsidered for the purposes of any
definitive measures,

(1) European Commission

Trade Directorate-General
Directorate C
DM 24 — 8/38
Rue de la Loi/Wetstraat 200
B-1049 Brussels.

L 111/18

EN

Official Journal of the European Communities

9.5.2000

HAS ADOPTED THIS REGULATION:

Article 1

Country/company

Rate of anti-
dumping duty

TARIC addi-
tional code

1.
A provisional anti-dumping duty is hereby imposed on
imports of hairbrushes currently classifiable within CN code
9603 29 30 originating in the People's Republic of China, the
Republic of Korea, Taiwan and Thailand.

All other companies

11,9 %

8900

Thailand

All companies

48,4 %

Country/company

Rate of anti-
dumping duty

TARIC addi-
tional code

China

Kai Fat Brush Factory Ltd

Lee Chung Kee Plastic Brush Factory
Ltd

Long Sure Industries Ltd

Lung Tain (Brothers) Company Ltd

National Brushes & Plastic Manufactory
Ltd

Ningbo Kai Fat Brush Co. Ltd

Yang Hau (Xiamen) Home Product Ltd

All other companies

Korea

Kumduk Brush Co., Inc.

Kyung Sung Plastic & Brushes Co.

Seodoo Industrial Co.

All other companies

Taiwan

48,2 %

48,2 %

48,2 %

48,2 %

48,2 %

48,2 %

48,2 %

EUR 0,55
per unit

19,5 %

5,0 %

12,9 %

42,6 %

A134

A135

A136

A137

A138

A139

A140

8900

A141

A142

A143

8900

Tong Fong Brush Factory Co. Ltd

3,1 %

A144

The proceeding concerning imports of hairbrushes origin-

2.
ating in Hong Kong shall be terminated.

3.
Unless otherwise specified,
concerning customs duties shall apply.

the provisions

in force

The release for free circulation in the Community of the
4.
product referred to in paragraph 1 shall be subject to the
provision of a security equivalent to the amount of the provi-
sional duty.

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96,
the interested parties may make known their views in writing
and apply to be heard orally by the Commission within one
month of the date of entry into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the
parties concerned may comment on the application of this
Regulation within one month of the date of its entry into force.

Article 3

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

Article 1 of this Regulation shall apply for a period of six
months.

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

Done at Brussels, 8 May 2000.

For the Commission

Pascal LAMY

Member of the Commission