Commission Regulation (EC) No 1091/2000 of 24 May 2000 imposing a provisional anti-dumping duty on imports of styrene-butadiene-styrene thermoplastic rubber originating in Taiwan
Date: 2000-05-24
Institutions: European Commission
Subjects: Taiwan, anti-dumping duty, dumping, import, originating product, synthetic rubber

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COMMISSION REGULATION (EC) No 1091/2000

of 24 May 2000

imposing a provisional anti-dumping duty on imports of styrene-butadiene-styrene thermoplastic
rubber originating in Taiwan

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
Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

(6)

(7)

The Commission sent questionnaires
to all parties
known to be concerned and received replies from a
number of companies in the Community and Taiwan.

The Commission sought and verified all the information
it deemed necessary for the purpose of a preliminary
determination of dumping and injury, and carried out
investigations at the premises of the following parties:

(8)

Exporting producers in Taiwan

— Chi Mei Corporation, Tainan

— Lee Chang Yung Chemical

Industry Corporation,

Taipei.

(9)

Community producers

A. PROCEDURE

— Dynasol SA, Madrid, Spain (new name of Repsol

In August 1999 the Commission announced by a notice
(hereafter ‘notice of initiation’) published in the Official
Journal of the European Communities (3) the initiation of an
anti-dumping proceeding with regard to imports into
the Community of styrene-butadiene-styrene thermo-
plastic rubber (hereinafter referred to as ‘SBS’), origin-
ating in Taiwan and commenced an investigation.

The proceeding was initiated as a result of a complaint
lodged by the European Chemical
Industry Council
(CEFIC) on behalf of Community producers representing
a major proportion of the Community production of
SBS. The complaint contained evidence of dumping of
the said product, and of material injury resulting there-
to justify the
from, which was considered sufficient
initiation of a proceeding.

At the same time the Commission initiated a parallel
anti-subsidy proceeding on the same product originating
in Taiwan (4).

The Commission officially advised the Community
producers, exporting producers and importers known to
the exporting
the representatives of
be concerned,
country and the complainant of the initiation of the
proceeding. It gave the parties concerned the oppor-
tunity to make their views known in writing and to
request a hearing.

Química SA)

— Enichem SpA, Milan, Italy

— Fina Chemicals, Brussels, Belgium

— Shell Chemicals Ltd, London, United Kingdom.

(10) Unrelated importers in the Community

— Biesterfeld France SARL, Rueil, France

— Tecnopolimeri, Milan, Italy.

(11) Users in the Community

— Thermoplastiques Cousin-Teissier, Tiffauges, France.

(12)

The investigation of dumping covered the period from 1
July 1998 to 30 June 1999 (hereinafter referred to as the
‘investigation period’ or ‘IP’). The examination of trends
in the context of the injury analysis covered the period
from 1 January 1995 up to the end of the investigation
period (hereinafter referred to as the ‘injury investigation
period’ or ‘IIP’).

B. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

1. Product under consideration

(1)

(2)

(3)

(4)

(5)

A number of exporting producers as well as some
Community producers, importers and suppliers in the
Community made their views known in writing. All
parties who so requested within the time limits set in the
notice of initiation were granted a hearing.

(13)

The product under consideration is styrene-butadiene-
styrene thermoplastic rubbers, which is currently classifi-
able within CN codes ex 4002 19 00 and ex 4002 99.
The TARIC codes corresponding to the mentioned CN
codes
and
4002 99 90 91. A change to the Combined Nomencla-
ture may be adopted during the period of validity of
provisional measures.

4002 19 00 10;

4002 99 10 10

are:

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 128, 30.4.1998, p. 18.
(3) OJ C 241, 26.8.1999, p. 5.
(4) OJ C 241, 26.8.1999, p. 4.

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(14)

(15)

This product is used in a variety of applications such as
road asphalt and
thermodification of bitumen for
roofing membranes,
footwear
compounding (mixture of different types of polymers,
fillers and plasticisers), plastic modification, and adhe-
sives.

technical

and

for

SBS is a polymer made from styrene and butadiene. It
can be either dry or, with the addition of oil at the
manufacturing stage, oil-extended SBS. Furthermore, SBS
can come in different types which can be identified
through different specifications (e.g. the ratio of styrene
to butadiene and the oil content). Although the potential
range of various types of SBS is important, there are no
significant differences in their basic physical characteris-
tics and no clear dividing lines exist between the various
types. They are therefore considered as one single
product for the purpose of this investigation.

2. Like product

(16)

The Commission found no differences between the basic
physical characteristics and uses of the SBS originating
in Taiwan and imported into the Community, the SBS
sold on the domestic market in Taiwan, and the SBS
produced by the Community industry and sold on the
Community market. It was therefore concluded that all
these products are alike within the meaning of Article
1(4) of Regulation (EC) No 384/96 (hereinafter referred
to as ‘the basic Regulation’).

C. DUMPING

1. Normal value

(a) Sufficient domestic sales

(17)

In accordance with Article 2(2) of the basic Regulation,
the Commission services first examined whether the
domestic sales of SBS to independent customers by each
exporting producer were sufficient for the purpose of
establishing normal value, i.e. whether the total volume
of such sales was equal to or greater than 5 % of the
total volume of the corresponding export sales to the
Community. This assessment revealed that all
investi-
gated exporting producers had representative sales of
SBS on their domestic markets during the investigation
period.

(18)

For each of the types sold by the exporting producers on
their domestic market and found to be directly compar-
able to types sold for export to the Community, it was
further considered whether domestic sales were suffi-
cient. This was the case when the volume of that type
sold on the domestic market to independent customers

(19)

(20)

(21)

(22)

(23)

(24)

during the investigation period represented 5 % or more
of the total volume of the comparable type sold for
export to the Community.

(b) Ordinary course of trade test

The Commission subsequently examined whether the
domestic sales of each company could be considered as
being made in the ordinary course of trade pursuant to
Article 2(4) of the basic Regulation. This was done by
establishing the proportion of domestic sales to indepen-
dent customers, of each type, sold at a profit (i.e. at a
price equal to or higher than the weighted average cost
of production) on the domestic market during the
investigation period.

For each product
type which was profitable on a
weighted average basis and for which more than 80 % of
its sales, by volume, was profitable, the normal value
was calculated as the weighted average price of all
domestic sales.

For each type where the volume of profitable sales made
on the domestic market was 80 % or less and 10 % or
more, normal value was calculated as the weighted
average price of the profitable domestic sales.

For those types where less than 10 %, by volume, was
sold at a profit on the domestic market, it was consid-
ered that the type concerned was not sold in the ordi-
nary course of trade and therefore, normal value was
constructed.

(c) Normal value based on actual domestic price

For those types which were sold in sufficient quantities
and in the ordinary course of trade in the domestic
market, normal value was based on the actual prices
in the
paid or payable by independent customers
domestic market of the exporting country, during the
investigation period, as set out in Article 2(1) of the
basic Regulation.

(d) Normal value based on constructed value

For product types which were not sold in sufficient
quantities or not sold in the ordinary course of trade on
the domestic market, normal
value had to be
constructed. Constructed normal value was established
for each cooperating exporting producer by adding to
the manufacturing cost of the product type the actual
selling, general and administrative expenses (hereinafter
‘SG & A’)
incurred and the average profit realised on
domestic sales of the like product, in the ordinary course
of trade, during the investigation period.

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2. Export price

(25) As all exports of the product under consideration by all
exporting producers were made directly to independent
customers in the Community,
the export price was
established in accordance with Article 2(8) of the basic
Regulation, on the basis of export prices actually paid or
payable.

3. Comparison

(26)

For the purpose of ensuring a fair comparison between
the normal value and the export price, due allowance in
the form of adjustments was made for differences
affecting price comparability in accordance with Article
2(10) of the basic Regulation. Accordingly, allowances
for differences in transport costs, ocean freight and
loading and ancillary costs,
insurance costs, handling,
packing costs, credit costs, and commissions, have been
granted where applicable and justified. The comparison
between normal value and export price was made on an
ex-factory basis.

4. Dumping margin

(27)

For both exporting producers,
it was found that the
export prices varied significantly between time periods,
so that the comparison of normal values with weighted
average export prices by product type would not reflect
the full degree of dumping, in the sense of Article 2(11)
of the basic Regulation. As foreseen in that Article, the
normal weighted average values were thus compared to
the prices of individual export transactions.

it is proposed to establish a residual dumping margin at
a higher level,
the highest
dumping margins
the two cooperating
exporting producers with regard to product types sold in
representative quantity,

is, on the basis of

found for

i.e. 20 %.

that

(30)

The provisional dumping margins
expressed as a
percentage of the cif import price at the Community
border duty unpaid are the following:

— Lee Chang Yung Chemical Industry

Corporation, Taipei:

— Chi Mei Corporation, Tainan:

— Non-cooperating exporting producers:

5,3 %

9,1 %

20 %.

D. INJURY

1. Definition of Community industry

(31)

Four companies produced SBS in the Community, all of
them complainants in the present case.

(32) All four companies fully cooperated in the investigation
and on this basis it was established that they represent
the Community production of SBS. They,
100 % of
therefore, constitute the Community industry within the
meaning of Article 4(1) of the basic Regulation and will,
hereafter, be referred to as ‘the Community industry’.

(28)

The two exporting companies who cooperated in these
investigations were responsible for less than 30 % of the
SBS imported into the European Community during the
period of investigation and originating in Taiwan.

(33)

(29) Given this low level of cooperation, it was considered
inappropriate to establish the duty rate for non-cooper-
ating companies at the same rate as the highest rate that
has been established for the cooperating companies, i.e.
9,1 %. Rather, in order not to reward non-cooperation,

2. Consumption in the Community

The Community consumption of SBS was taken as the
combined volume of sales made by the Community
industry,
the import volume from Taiwan and the
imports from other third countries. Since no product-
specific Eurostat statistics exist, and since cooperation
was very low (30 %), actual export figures could not be
used in the calculation and, therefore, the Commission
information available concerning the
used the best
quantity of
the product concerned from
Taiwan.

imports of

Consumption

1995

1996

1997

1998

IP

Tonnes

Index

170 543

176 902

212 301

195 140

203 450

100

104

124

114

119

Community consumption of SBS increased in volume by 19 % between 1995 and the investigation
period.

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3. Imports of SBS from Taiwan to the Community

(a) Volume of imports (1)

(34)

Between 1995 and the investigation period, imports originating in Taiwan developed in volume as
follows:

Imports

1995

1996

1997

1998

IP

Tonnes

Index

3 541

100

8 681

15 429

15 893

12 380

245

436

449

350

The volume of imports from Taiwan increased significantly over the period examined. Between 1995
and 1998 they increased 4,5 times, and by 3,5 times from 1995 to the end of the investigation
period.

(b) Market share of imports

(35)

(36)

The market share in volume held by imports from Taiwan confirms the sharp increase of these
imports in the Community market. The market share almost quadrupled between 1995 and 1998,
and increased threefold between 1995 and the investigation period.

The market share has followed the same trend as the volume of imports. Indeed, import volumes
from Taiwan have increased substantially over the period 1995-98, and show a certain reduction in
the investigation period.

Market share

1995

1996

1997

1998

IP

Tonnes

Index

2,1 %

100

5,0 %

236

7,4 %

350

8,0 %

392

6,1 %

293

(c) Average price of imports

(37)

The average import price from Taiwan decreased 17 % between 1997 and the investigation period.

Average import price

Ecu/kg

Index

1997

0,92

100

1998

0,85

93

IP

0,76

83

These figures were obtained from the cooperating exporters and were not available for 1995 and
1996 because the companies just set up at that time.

(1) The information concerning the volume of imports initially came from the Community producers of the product

concerned, and was cross-checked with the Community importers' figures during the on-spot investigations.

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(d) Price undercutting

(38)

(39)

For the determination of price undercutting, the Commission compared export prices from Taiwan
with prices charged by the Community industry to independent customers at the same level of trade,
after excluding discounts and rebates.

Prices were compared for similar product types of SBS. The results of the comparison showed price
undercutting margins, expressed as a percentage of the Community industry's average selling prices,
of 12,3 %.

4. Economic situation of the Community industry

(a) Production, capacity and capacity utilisation

(40) Annual production of the Community industry fluctuated, going trom 242 710 tonnes in 1995 to
235 926 tonnes in the investigation period. However, from 1997 to the investigation period
production fell by 8 %.

(41) As regards capacity, this increased from 271 999 tonnes in 1995 to 328 000 tonnes in 1997 or by

22 %. It remained constant from 1997 onwards.

1995

1996

1997

1998

IP

Production (tonnes)

242 710

222 139

257 808

226 880

235 926

Index

100

92

106

93

97

Capacity (tonnes)

271 999

310 011

328 000

328 000

333 008

Index

100

114

120

120

122

Capacity utilisation

Index

89 %

100

72 %

80

79 %

88

69 %

78

71 %

79

(b) Sales volume

(42)

The volume of SBS sold by the Community industry on the Community market increased by 13 %
during the period considered. It reached a peak in 1997 of 183 301 tonnes, falling to 167 877 in
1998, and recovering some of the lost ground to 180 920 tonnes during the investigation period.

Sales

1995

1996

1997

1998

IP

Tonnes

Index

159 543

160 902

183 301

167 877

180 920

100

101

115

105

113

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(c) Average sales price and price evolution

(43)

Prices have decreased year on year throughout the whole period, from 1995 up to and including the
investigation period. Overall, the average price fell by 47 % during the period.

Average EC industry price

1995

1996

1997

1998

IP

Ecu/kg

Index

1,766

100

1,272

72

1,172

66

1,089

62

0,954

53

(d) Market share

(44)

The development of sales volume compared to that of Community consumption shows that the
market share held by the Community in industry decreased significantly during the period consid-
ered.

(45)

The negative trend was reversed during the investigation period, without recovering to the level
reached in 1995 and 1996.

1995

94 %

100

1996

91 %

97

1997

86 %

92

1998

86 %

92

IP

89 %

95

Market share

Index

(e) Stocks

(46)

Compared to 1996, stocks increased by 17 % in 1997 and then fell back in 1998 and the
investigation period to level 11 % below the 1996 figure.

1996

1997

1998

IP

Stocks (tonnes)

Index

39 741

46 417

43 494

34 453

100

117

109

89

The exact figures for 1995 could not be obtained accurately because of changes of accounting
systems in one company and changes of the structure of an other company.

(f) Profitability

(47)

In 1996, the Community industry showed a profit of 14,9 %, expressed as a percentage of net sales.
In 1997 profits declined to 0,5 %, then turned into a loss of 1,5 % in 1998, followed by a loss of
9,8 % in the investigation period.

1996

1997

1998

IP

Profitability (% of sales value)

14,9 %

0,5 %

– 1,5 %

– 9,8 %

Index

100

4

(10)

(66)

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The exact figures for 1995 could not be obtained accurately because of changes of accounting
systems in one company and changes of the structure of another company. This decrease in
profitability reflects the fact that Community industry, in an apparent effort to hold on to market
share, reduced its selling prices by almost 50 % between 1995 and the investigation period as
mentioned above.

(g) Investments

(48)

Yearly investments made by the Community industry are very important in view of the fact that the
SBS industry is capital intensive. Investment fell by 35% between 1998 and the investigation period,
reflecting that investments for machinery equipment have been made before 1995, and no important
investments have been made since then. Only during 1998 was the decreasing trend halted, when
investments were significantly higher than in either 1997 or the investigation period.

Investments

1995

1996

1997

1998

IP

Thousand ecu

Index

12 687

100

9 555

75

8 550

14 428

67

114

8 304

65

(h) Employment

(49)

Employment of the sector in the product concerned declined steadily by a total of 5% between 1995
and the investigation period.

1995

1996

1997

1998

Employment

Index

575

100

570

99

563

98

561

96

IP

547

95

5. Conclusion on injury

(50)

(51)

(52)

(53)

(54)

From 1995 up to the investigation period negative trends were found in investments (– 35 %),
employment (– 5 %), capacity utilisation (– 16 %), sales prices (– 47 %), market share (– 5 percentage
points), and profitability (net loss of 9,8 %).

The figures for the investigation period show that the Community industry is now in a very critical
situation: – 9,8 % profitability.

The 3 % increase of production between 1995 and the investigation period should be seen in the
context that in both 1996 and 1998 production declined by 6 % and 2 % respectively and during the
same period consumption in the Community market of the product concerned increased by 19 %.

Between 1998 and the investigation period, a number of indicators showed modest rises. Capacity,
volume of sales, market share and production levels were all up on the previous year. Employment
continued its downward trend. More significant were the steep decline in sales prices, which fell
12 % from their 1998 level; and profit margin, deteriorating from a 1,5 % loss in 1998 into a 9,8 %
loss during the investigation period.

The investigation has shown that the Community industry has suffered continuous and significant
price pressure, with price undercutting averaging 12,3 % for imports from Taiwan. In parallel, the
market share of these imports developed from 2,1 % to 6,1 % between 1995 and the investigation
period.

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(55)

In the light of this analysis, in particular price undercutting, sharply declining prices, and heavy
financial
losses, the Commission concluded that the Community industry has suffered material
injury.

E. CAUSATION

1. Introduction

It must first be noted that, since anti-dumping and anti-subsidy investigations are running in parallel,
and provisional countervailing measures are being imposed by Regulation (EC) No 1092/2000 (1)
relating to the same imports, the effect of the dumping and subsidisation cannot be considered in
isolation. Consequently the reference to ‘dumped’ imports in this text should be read in the context
of the fact that these imports are subsidised as well as dumped.

In order to reach its conclusions on whether the dumped imports caused material
injury, the
Commission considered the impact of all known factors on the situation of the Community industry,
and examined how far they could intervene in the explanation of
the injury caused to the
Community Industry.

2. Effect of the dumped imports

The Commission found that imports of SBS from Taiwan to the Community increased significantly
during the period examined, from 3 541 tonnes in 1995 to 12 380 tonnes during the investigation
period. At the same time, the average sales prices decreased by 17 %.

The market share held by Taiwan increased from 2,1 % in 1995 to 6,1 % during the investigation
period, whilst during the same period the Community industry lost 5 percentage points of market
share.

(56)

(57)

(58)

(59)

(60) During the investigation period, price undercutting averaged over 12 %.

(61)

(62)

The Commission considers that, in the circumstances, it is clear that the low price of imports of SBS
from Taiwan caused a pressure on prices in the market, and subsequently, the critical decrease of
sales prices of the Community industry.

The level of cooperation of exporters of the product concerned is extremely low (approximately
30 % in volume), leading to an uncertainty concerning the exact development of the prices practised
by the non-cooperating exporters.

(63) A strong causal

link between the increasing volume of dumped imports from Taiwan and the
deteriorating situation of the Community industry, was highlighted by the fact that the major losses
suffered by the Community industry occurred for those product types of SBS mainly imported from
Taiwan.

(64)

The Commission considers this to be particularly relevant as imported SBS and SBS produced in the
Community have been found like products, as the market for these products is highly transparent,
and as they have the same physical characteristics for each type, and are furthermore offered through
similar sales channels in the Community market. Increasing volumes of SBS imported from Taiwan
had a significant impact on that market overall and/or the situation of the Community industry. In
the transparent SBS market, low-priced dumped SBS from Taiwan had a major impact on the level of
prices in the Community.

(1) See page 26 of this Official Journal.

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3. Impact of other factors

(a) Development of consumption

(65)

From 1995 up to the investigation period, consumption in the Community market increased by
19 % in volume terms indicating a growing SBS market. Therefore, the injurious situation suffered by
the Community industry cannot be explained by the development of consumption.

(b) Imports of SBS from other third countries

(66)

Total imports of SBS onto the Community market from countries other than Taiwan, developed as
follows:

Imports (tonnes)

1995

1996

1997

1998

IP

Brazil

Index

Mexico

Index

South Korea

Index

USA

Index

Other countries
(excluding Taiwan)

Index

Total (excluding Taiwan)

Index

Year to year change

1 500

100

2 000

100

1 500

100

2 500

125

300

100

3 000

2 705

100

959

100

7 549

100

90

314

33

7 319

97

– 3 %

2 500

167

3 000

150

1 000

333

6 328

211

743

77

2 000

133

3 500

175

1 600

533

3 963

132

307

32

1 500

100

3 500

175

1 300

433

3 500

116

350

36

13 571

11 370

10 150

180

151

136

+ 83 %

– 29 %

– 10 %

(67)

The imports from other third countries increased by 36 % in terms of volume. However, a peak was
reached in 1997, since when import volumes have been falling back.

(68)

In market share, the evolution is shown in the following table:

Market share

1995

1996

1997

1998

Brazil

Mexico

South Korea

USA

0,9

1,2

0,0

1,8

3,9

Total

0,8

1,4

0,2

1,5

3,9

1,2

1,4

0,5

3,0

6,1

1,0

1,8

0,8

2,0

4,6

(%)

PI

0,7

1,7

0,6

1,7

4,7

(69)

That imports onto the Community market from other third countries did have an impact on the
economic situation of the Community industry cannot be excluded. Nevertheless, the market share
of Taiwan in the investigation period (6,1 %) is well above the total amount for all other countries
taken together. Taking into account that the level of these imports has decreased since 1997, they
cannot break the causal
link between the imports from Taiwan and the injury suffered by the
Community industry.

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(c) Export activity and other activities of the Community industry

(70)

Exports to third countries between 1995 and the investigation period represented between 26 % and
30 % of total sales.

Exports

1995

1996

1997

1998

IP

Tonnes

Index

67 213

66 535

67 831

61 926

64 047

100

99

101

92

95

(71)

Considering the proportion of exports to total sales, this relatively small reduction of export volume
cannot be considered as an important cause of injury.

(d) Prices of raw materials

(72)

The product concerned is composed, on average, of 70 % butadiene and 30 % styrene. The average
purchase price for these two components for the Community industry were:

Styrene

1996

1997

1998

Price in ecu/tonne

Index

449

100

495

110

429

95

Butadiene

1996

1997

1998

Price in ecu/tonne

Index

370

100

413

112

356

96

IP

416

93

IP

325

88

(73) Although there is a price decrease for raw materials during the investigation period, the price
evolution does not show a constant trend over the period 1996 to the investigation period, and any
decrease in the price of raw materials has been far less than the decrease in the SBS price in the
Community.

4. Conclusion

(74)

It cannot be excluded that factors other than dumped imports from Taiwan, in particular the imports
from other third countries, contributed to the difficult state of the Community industry. However, in
view of the substantial increase in import volume from Taiwan, and the considerable degree of price
decreases and price undercutting for these imports, the Commission concluded that the dumped
imports had material negative consequences on the situation of the Community industry. Therefore,
dumped imports from Taiwan, taken in isolation, have caused material injury to the Community
industry.

(75) One importer claimed that in fact only one exporting producer from Taiwan had been responsible
for the significant price drop and only this exporter, consequently, should be subject to measures.
However, the Commission found that the cooperating exporters from Taiwan to significantly
undersold and undercut European Community industry prices, although in different degrees.

F. COMMUNITY INTEREST

1. Introduction

(76)

The Commission examined whether, despite the conclusions on dumping and injury caused thereby,
compelling reasons existed which would lead to the conclusion that it would not be in the
Community interest to adopt measures in this particular case. For this purpose, and pursuant to
Article 21 of the basic Regulation, the Commission services considered the impact of measures for
all parties involved in the proceedings.

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2. Community industry

(77)

(78)

(79)

(80)

(81)

The Community industry has been suffering from low-priced and dumped imports of SBS. The
objective of anti-dumping measures is to re-establish fair competition in the Community market.

The Community industry has been making considerable efforts to improve its productivity in recent
years, in an attempt to lower its cost of production and to enhance its competitiveness in this price
sensitive market. The Community industry deployed particular efforts of rationalisation during the
period examined

In view of the nature of the injury suffered by the Community industry, the Commission considered
that, in the absence of the imposition of anti-dumping measures, the further deterioration of the
situation of the Community industry would be quite probable.

The investigation showed that a capacity reduction may result in closure of certain production sites,
which could not operate economically in view of the low-priced imports.

Furthermore, the ongoing restructuring efforts made by the Community industry show that it is not
ready to abandon this segment of production, particularly as the market is rapidly growing.

3. Importers and users

(82)

The Commission sent questionnaires to 15 known importers unrelated to the exporting producers in
Taiwan, as well as to 15 users of SBS in the Community. Five importers and three users submitted
replies.

(83)

Some importers claimed that the imposition of anti-dumping duties would diminish competition in
the Community market and would affect negatively the price and availability of SBS.

(84) However, the imposition of anti-dumping measures, does not foreclose the Community to imports,
it will merely establish fair trading conditions. As to the availability of SBS, there are a number of
producers operating in the Community, these producers have unused production capacity, and there
are other sources of imports which, under fair trading conditions, will find the Community market
more appealing again.

(85) No evidence was provided by the users concerning any potential disadvantage that anti-dumping

measures could bring to their business.

(86) On the basis of the above the Commission concluded that the imposition of provisional anti-
dumping measures against imports of SBS from Taiwan would not cause any significant deteriora-
tion of the situation of importers and users.

4. Conclusion on Community Interest

(87) On the basis of the above facts and considerations, the Commission concluded, that there were no
compelling reasons not to impose measures concerning imports from Taiwan, in order to ensure
competitive conditions of fair pricing and to prevent the continuation of injury in the Community
industry.

G. PROVISIONAL DUTY

(88)

(89)

In view of the conclusions reached with regard to dumping,
injury, causation and Community
interest, provisional anti-dumping measures should be taken in order to prevent further injury being
caused to the Community industry by the dumped imports from Taiwan.

For the purpose of determining the level of these measures, the Commission took account of the
dumping margins found and of the amount of duty necessary to eliminate the injury sustained by
the Community industry. It also took account of the countervailing duties imposed in the parallel
anti-subsidy investigation.

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(90)

(91)

(92)

(93)

In accordance with Article 14(1) of the basic Regulation, no product shall be subject to both
anti-dumping and countervailing duties for the purposes of dealing with one and the same situation
arising from dumping or from export subsidisation. The subsidy schemes investigated in the parallel
anti-subsidy proceeding did not constitute export subsidies within the meaning of Article 3(4)(a) of
Council Regulation (EC) No 2026/97 (1). As such, the subsidies affect both the export prices and the
domestic prices of the exporting producers, thus not affecting the margin of dumping and the
provisional anti-dumping duty should not be adjusted to reflect the amount of subsidy found.

In order to determine the injury margin, the Commission considered that the prices of dumped
imports should be increased to a non-injurious level. The necessary price increase was determined on
the basis of an appropriate comparison of the export price, as established for the undercutting
calculations, with the non-injurious price of the different types sold by the Community industry on
the Community market. The non-injurious price has been obtained by adding to the sales price of
the Community industry its average actual loss and by further adding a profit margin of 8 %. Thls
profit margin was considered a reasonable profit for this product that would be earned in absence of
unfair trade; it has been used in previous cases for this type of industry and is well below the profit
margin that was being achieved by the Community industry in the mid-1990s.

In accordance with Article 7(1) of the Basic Regulation, the anti-dumping duty should correspond to
the dumping margin, unless the injury margin is lower. Since all dumping including the residual
margin, when combined with the provisional countervailing duty of 1,0 or 1,5 %, were found to be
lower than the injury margins, the provisional duties to be imposed should correspond to the
dumping margins established, in conformity with Article 7(2) of the basic anti-dumping Regulation.
Accordingly, this leads to the following provisional anti-dumping duty rates for the exporting
producers in Taiwan:

— Chi Mei Corporation:

— Lee Chang Yung Chemical Industry Corporation:

— Non-cooperating exporting producers:

9,1 %

5,3 %

20 %.

The individual company anti-dumping duty rates specified 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 companies’) are thus exclusively applicable to imports of products
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’.

(94) Any claim requesting the application of these individual company anti-dumping duty rates (e.g.
following a change in the name of the entity or following the setting-up of new production or sales
entities) should be addressed to the Commission (2) forthwith with all relevant 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
accordingly by updating the list of companies benefiting from individual duty rates.

H. FINAL PROVISION

(95)

In the interests of sound administration, periods 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 duty,

(1) OJ L 288, 21.10.1997, p. 1.
(2) European Commission

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

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HAS ADOPTED THIS REGULATION:

Article 1

1.
A provisional anti-dumping duty is hereby imposed on imports of styrene-butadiene-styrene thermo-
plastic rubbers, falling within CN codes ex 4002 19 00 and ex 4002 99 and originating in Taiwan. These
codes may change during the period of validity of this duty as set out in recital 13 of this Regulation.

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

2.
before duty, shall be as follows:

Producer

Rate of duty
(%)

TARIC additional code

9,1

A127

Chi Mei Corporation
59-1 San Chia, Yen Te,
Tainan County, Taiwan
Republic of China

Lee Chang Yung Chemical Industry Corporation
83 Pateh Road, Section 4,
Taipei, Taiwan 105,
Republic of China

5,3

A128

All other Taiwanese companies

20,0

A999

3.

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

The release for free circulation in the Community of the product referred to in paragraph 1 shall be

4.
subject to the provision of a security, equivalent to the amount of the provisional duty.

Article 2

1.
The parties referred to in Article 20(1) of Regulation (EC) No 384/96 may make their views known in
writing and apply to be heard orally by the Commission within 15 days of the date of entry into force of
this Regulation.

The parties referred to in Article 21(4) of Regulation (EC) No 384/96 may comment on the

2.
application of this Regulation within one month of the date of its entry into force.

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

Article 3

Article 4

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

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

Done at Brussels, 24 May 2000.

For the Commission

Pascal LAMY

Member of the Commission