Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of television camera systems originating in Japan
Date: 2000-09-06
Institutions: European Commission
Subjects: Japan, anti-dumping duty, import, recording equipment, television

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.09.2000
COM(2000) 491 final

Proposal for a

COUNCIL REGULATION

imposing a definitive anti-dumping duty on imports of television camera systems
originating in Japan

(presented by the Commission)

1.

2.

3.

4.

EXPLANATORY MEMORANDUM

On 30 April 1999, the Commission initiated an expiry review investigation of the
measures in force in respect of these imports further to a request made by the
Community producers indicating that the expiry of the measures would be likely to
lead to a continuation or recurrence of injurious dumping.

The attached proposal for a Council Regulation is based on the findings on dumping,
on the situation of the Community industry and Community interest and on the
analysis of the possible effects of the removal or maintenance of the measures in
force.

The investigation confirmed the likelihood of recurrence of injurious dumping
should the measures be repealed in respect of the country concerned.

is,

therefore, proposed that

It
the Council adopt
Regulation that would prolong the existing measures.

the attached proposal for a

2

Proposal for a

COUNCIL REGULATION

imposing a definitive anti-dumping duty on imports of television camera systems
originating in Japan

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection
against dumped imports from countries not members of the European Community1, and in
particular Article 9 and 11 (2) thereof,

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

Whereas:

A. PROCEDURE

1. Previous investigations

(1)

(2)

In April 1994, further to an anti-dumping investigation initiated in March 1993 ("the
original investigation"), the Council, by Regulation (EC) No 1015/942 ("definitive
Regulation"), imposed a definitive anti-dumping duty on imports of television camera
systems ("TCS") originating in Japan. The original investigation covered the period
from 1 July 1991 to 31 December 1992.

to Article 12 of Council Regulation (EC) No 384/963

In October 1997, further to an investigation ("the anti-absorption investigation")
(the "Basic
pursuant
Regulation"), the Council, by Regulation (EC) No 1952/974, raised the rates of the
definitive anti-dumping duty for
two companies concerned, namely for Sony
Corporation ("Sony") and Ikegami Tsushinki & Co Ltd. to 108.3% and 200.3%
respectively.

1

2

3

4

OJ L 56, 6.3.1996, p. 1, as last amended by Regulation (EC) No 905/98 of 27 April 1998, OJ L 128,
30.4.1998, p.18.
OJ L 111, 30.4.1994, p.106. as last amended by Council Regulation (EC) No 176/2000, OJ L 22,
27.1.2000, p.29.
OJ L 56, 6. 3.1996, p.1, as last amended by Regulation (EC) No 905/98 (OJ No L 128, 30 April 1998,
p.18).
OJ L 276, 9.10.1997, p. 20.

3

(3)

(4)

(5)

(6)

(7)

(8)

In June 1998, the Commission, by Regulation (EC) No 1178/985 initiated, pursuant to
the Basic Regulation, an investigation concerning the alleged
Article 13 of
circumvention of the anti-dumping measures in force by the assembly of parts and
modules of TCS in the Community ("the anti-circumvention investigation").
Subsequently the complaining Community industry withdrew its complaint and the
proceeding was terminated in February 1999. On the basis of the evidence found
during this investigation, the Commission initiated a proceeding pursuant to Article 5
of the Basic Regulation concerning the imports of certain parts of TCS originating in
Japan6 ("the parts investigation").

In addition, an anti-dumping investigation pursuant
to Article 5 of the Basic
Regulation was initiated in January 1999 concerning the imports of TCS originating in
the United States of America (US)7 ("the US investigation"). This investigation was
terminated on 1 February 2000, without the imposition of any measures following the
closure of the production facilities of the single US exporting producer of TCS, a
company related to a major Japanese exporting producer of TCS.

2. Present investigation

2.1 Expiry review

Following the publication of a notice of impending expiry8 of the anti-dumping
measures in force on imports of TCS originating in Japan, the Commission received a
request to review these measures pursuant to Article 11(2) of the Basic Regulation.

The request was lodged on 28 January 1999 by Philips Digital Video Systems and
the
Thomson Broadcast Systems
“Community industry”), whose collective output of TCS constitutes 100% of the
Community production of this product pursuant to Articles 4(1) and 5(4) of the Basic
Regulation.

(the ”applicant Community producers” or

The request was based on the grounds that the expiry of the measures would be likely
to result in the continuation or recurrence of dumping and injury to the Community
industry.

Having determined, after consulting the Advisory Committee, that sufficient evidence
existed for the initiation of an expiry review, the Commission initiated the present
investigation pursuant to Article 11(2) of the Basic Regulation by the publication of a
notice in the Official Journal of the European Communities on 30 April 19999.

5

6

7

8

9

OJ L 163, 6.6.1998, p. 20.
Notice of initiation OJ C 38, 12.2.1999, p.2.
Notice of initiation OJ C 17, 22.1.1999, p.4.
OJ C 334, 31.10.1998, p.15.
OJ C 119, 30.4.1999, p. 11.

4

3. Investigation

(9)

(10)

(11)

The Commission officially advised the applicant Community producers, the exporting
producers in Japan and the representatives of the government of the exporting country,
of the initiation of the review. The Commission sent questionnaires to all these parties
and to those who made themselves known within the time limit set in the Notice of
Initiation. The Commission also gave the parties directly concerned the opportunity to
make their views known in writing and to request a hearing.

The applicant Community producers replied to the questionnaire. Only one Japanese
exporting producer and no unrelated importer replied to the questionnaire. Fifteen
users replied to the questionnaire, although some of them did so only partially, and an
association of users provided certain information.

The Commission sought and verified all information it deemed necessary for the
purpose of a determination of the likelihood of continuation or recurrence of dumping
and injury and of the Community interest. Verification visits were carried out at the
premises of the following companies:

(a) applicant Community producers:

-

-

Philips BTS Broadcast Television Systems b.v., Breda ( “Philips”)

Thomson Broadcast Systems, Cergy St Christophe ( “Thomson”).

(b) Exporting producers in Japan

-

Hitachi Denshi, Ltd.

(12)

The investigation of the likelihood of a continuation and/or recurrence of dumping
covered the period from 1 January 1998 to 31 December 1998 (the “investigation
period” or "IP"). The examination of trends relevant for the assessment of any
continuation and/or recurrence of injury covered the period from 1 January 1995 to
31 December 1998 (hereinafter referred to as "IIP").

B. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT

1. Product under consideration

(13)

The product under consideration is television camera systems (TCS) currently
classified under CN-codes ex 8525 3090, ex 8537 10 91, ex 8537 10 99,
ex 8529 90 81, ex 8529 9088, ex 8543 8995, ex 8528 21 14, ex 8528 2116 and
ex 8528 2190 originating in Japan.

(14) As set out in the definitive Regulation, TCS may consist of the following parts,

imported either together or separately:

–

a camera head with three or more sensors (12mm or more charge-coupled pick-
up devices) with more than 400 000 pixels each, which can be connected to a
rear adapter, and having a specification of the signal to noise ratio of 55 dB or
more at normal gain; either in one piece with the camera head and the adapter
in one housing, or separate;

5

–

–

–

–

a viewfinder (diagonal of 38mm or more);

a base station or camera control unit (CCU) connected to the camera by a
cable;

an operational control panel (OCP)
adjustment lens opening or iris) of single cameras;

for camera control (i.e.

for colour

a master control panel (MCP) or master set-up unit (MSU) with selected
camera indication, for the overview and for adjustment of several remote
cameras.

(15)

Products not covered by the above-definition are:

–

–

–

–

–

Lenses;

Video tape recorders;

Camera heads with the recording unit in the same, inseparable, housing;

Professional cameras which cannot be used for broadcast purposes;

Professional cameras listed in the Annex (Taric additional code: 8786).

(16) During the course of the investigation it was found that a new model of TCS had been
developed as from 1997, i.e. a broadcasting camera head which is connected to a
videotape recorder
("camcorder"). The investigation has shown that both the
Community industry and the exporting producers offer their television camera heads,
in general, with different configurations, either connected to a triax adapter or to a
recording unit. As indicated above, videotape recorders and camera heads with a
recording unit in the same housing are excluded from the product scope of the current
proceeding. However, camcorders may also consist of a camera head docked with a
videotape recorder without both being within the same housing. On this basis it was
concluded that such type of camera head falls into the definition of the product under
consideration made in the definitive Regulation. Furthermore, it has been established
that on the basis of the definition of the product under consideration mentioned above
the recording unit alone does not fall under it.

(17)

The investigation has also shown that analogue broadcast TCS have been gradually
replaced by a new type of TCS, digital broadcast TCS ("digital TCS") which have
been introduced in the Community market as from 1997. These digital TCS fall into
the definition of the product under consideration in the definitive Regulation.

2. Like product

(18)

It was found that there were no basic differences in the physical and technical
characteristics and uses of the TCS manufactured by Japanese exporting producers and
sold in the Community, and the product manufactured and sold on the domestic
market of the exporting country.

6

(19)

Furthermore, the product concerned manufactured by Japanese exporting producers
and sold in the Community and the product manufactured and sold by the applicant
Community producers on the Community market use the same basic technology and
are both conform with world-wide applicable industry standards. These products also
have the same applications and uses, they consequently have similar physical and
technical characteristics, are interchangeable and competing with each other.
Furthermore, both the applicant Community producers and the Japanese exporting
producers manufacture digital products and camcorders, which have been the latest
technological developments related to the product concerned as compared with the
original investigation. Therefore, TCS manufactured by Japanese exporting producers
and sold in the Community and TCS manufactured and sold by the complaining
Community industry in the Community market are alike within the meaning of
Article 1 (4) of the Basic Regulation.

C. LIKELIHOOD OF RECURRENCE OR CONTINUATION OF DUMPING

(20)

In accordance with Article 11 (2) of the Basic Regulation, the purpose of this type of
review with regard to the dumping aspects is to determine whether or not, the expiry
of measures would lead to a continuation and/or recurrence of dumping.

1. Level of co-operation

(21) As compared to previous investigations, the level of co-operation in the present
investigation by the Japanese exporting producers was particularly low. Only one of
the smaller producers of TCS co-operated and reported a marginal number of exports
of the product concerned to the Community. The remaining three companies which
had made themselves known in the original investigation refused to provide any co-
operation although it
they have their head offices, main
production and R&D facilities in Japan and that, for at least two of them, TCS with
their brand name have been sold in the Community during the IP in substantial
quantities.

is widely known that

2. Likelihood of continuation of dumping

(22) Given the low degree of co-operation and the fact that the statistical information
available from Eurostat in this respect was considered not to be reliable (the CN codes
also cover products not concerned), it could not be established with certainty whether
there were imports of TCHs as such from Japan. However, it is recalled that during the
IP, important parts of TCS were imported into the Community. Moreover, it was
established that TCS produced in the US by a subsidiary of Sony were imported into
the Community in significant quantities. On balance, it was therefore considered
prudent to conclude that the current import volumes of TCS originating in Japan were
low when compared with import volumes during the original investigation period.
Hence, no conclusion was made regarding the likelihood of continuation of dumping.

7

3. Likelihood of recurrence of dumping

(23)

In the absence of co-operation from the main Japanese exporting producers, and in
accordance with Article 18 of the Basic Regulation, findings had to be established on
the basis of facts available. Consequently, and in the absence of any other reliable
source, the analysis regarding the likelihood of recurrence of dumping, should the
measures be allowed to expire, was based on information provided in the request for a
review as well as information obtained in the course of the investigation from the
Community industry and users of TCS.

(24) According to the request, the level of dumping for the camera head alone is 30.6%.
The corresponding calculation contains a number of conservative estimates. For
instance, other elements of a TCS have not been taken into consideration for the
purpose of the aforementioned calculation although they are sometimes supplied free
of charge. This indicates that the actual level of dumping in case of a repeal of the duty
would most likely be higher than 30.6%.

(25)

The request also shows that dumping margins would reach at least at the level found in
the original investigation should measures be repealed.

(26) On this basis, and in the absence of any more appropriate information, it has been
concluded that, should measures be repealed, the dumping margins would resume at
significant levels.

(27) As far as the likely future volume of exports of TCS to the Community is concerned, it
was found that according to the information available, production capacity of TCS in
Japan has remained at least at the same level as that found in the original investigation
and it is large enough to allow for the resumption of considerable exports to the
Community if the anti-dumping duty was to expire. This is confirmed by the fact that
the sales of TCS assembled in the Community and in third countries, which usually
incorporate valuable and crucial TCS parts originating in Japan, indicate that the
production capacity was basically unchanged.

(28)

Furthermore, given the mobile nature of the production, production capacity for these
products may be expanded if necessary within months. Indeed, the fact that the
manufacturing facilities of one of the Japanese exporting producers were transferred
from the US to the Community in a time period of some months clearly shows that
production capacity for the product concerned may be created/expanded or reduced in
a short period of time. Should the anti-dumping measures expire, manufacturing
activities for TCS in the Community could be transferred to Japan and production
capacity in Japan could be easily expanded in order to resume the exports to the
Community.

(29) During the IIP, with the exception of Sony, all Japanese exporting producers
manufactured their TCS for
the US and Latin American markets in Japan.
Furthermore, on the basis of the information available, it has been established that
TCS destined for the Japanese and Asian markets were being manufactured in Japan
by all exporting producers. Furthermore, R&D activities for these products were also
located in Japan since an important part of these activities benefit not only TCS but
also professional cameras as well as other products. The Japanese exporting producers
were able to adapt to the changing demand by increasing their production in Japan
when the market expanded. This led to the conclusion that there was free production

8

(30)

(31)

(32)

(33)

capacity left in Japan which was used when the consumption both in the Community
and worldwide expanded. Therefore, should the anti-dumping measures expire, an
increase in production of the Japanese exporting producers is likely.

It has been concluded that the existing production capacity, as well as the possibility to
increase it if necessary, constituted a potential for Japanese exporting producers to
raise their production and export volumes to the Community in case the anti-dumping
measure were to lapse. Considering that
their R&D facilities as well as the
manufacturing facilities for the main part of the components of the TCS were located
in Japan, this would result in an improvement of the economies of scales of the
Japanese exporting producers.

It should also be noted that the two Japanese exporting producers which set up
assembly facilities for TCS in the Community maintained the production for export to
the Community of products not subject to anti-dumping duties in Japan, i.e. video tape
recorders, camera heads with the recording unit in the same, inseparable housing and
professional cameras that cannot be used for broadcast purposes. Although, as
mentioned above, these products are not covered by the present investigation, the
production lines and related capacity needed to produce them are also appropriate for
the production of TCS. On this basis and in the absence of any other information due
to the lack of co-operation from the exporting producers concerned, it was concluded
that although the imposition of anti-dumping duties has led to a change in the
organisation of the production of TCS by the exporting producers concerned, an
expiry of the anti-dumping measures would be likely to reverse this situation.

4. Conclusion

It results from the above that the Japanese exporting producers have the potential to
raise their production in Japan and their export volumes of TCS to the Community at
significantly dumped prices.

The investigation revealed no facts showing that the situation regarding normal value,
export prices and consequently the dumping margins established in the original
investigation,
anti-circumvention
investigation have significantly changed. It is therefore concluded that, should the
measures be repealed, there is a likelihood of recurrence of dumping.

anti-absorption

investigation

and

the

the

D. DEFINITION OF THE COMMUNITY INDUSTRY

(34)

The investigation confirmed that the collective output of the two applicant Community
producers accounts for 100% of the Community production of TCS. The two
producers are therefore deemed to constitute the Community industry within the
meaning of Article 4(1) and Article 5 (4) of the Basic Regulation.

(35) As to the other economic operators in the Community related to the Japanese
exporting producers, given the low degree of co-operation, the nature of their activities
within the Community could not be investigated in detail, i.e. whether these activities
are simple assembly operations or if there is a certain value added in the Community.
Therefore it could not be determined whether these assembly operations are sufficient
in order to qualify them as companies manufacturing the product under consideration
in the Community. Furthermore, given their relation with the Japanese exporting
producers, it was considered that they should be excluded from the Community
industry in accordance with Article 4 (1) (a) of the Basic Regulation.

9

E. ANALYSIS OF THE SITUATION IN THE COMMUNITY MARKET10

1. Preliminary remarks

(36) As described above, the product under consideration in the current proceeding is TCS
which consist of a camera head with three or more sensors, a view finder, a base
station or camera control unit (CCU), an operational control panel (OCP) and a master
control panel (MCP) or master set-up unit (MSU). In practice these components can be
sold and therefore also imported either together or separately.

(37)

The investigation confirmed that while TCS do not always consist of all of the above
elements, they all necessarily include a camera head. Therefore, in line with the
approach taken in the original investigation, it was decided to express the economic
indicators relating to the situation of the Community industry and the situation on the
Community market in terms of numbers of television camera heads ("TCHs").

2. Consumption

(38) As mentioned above, only one of the Japanese exporting producers co-operated in the
present investigation. Thus, as regards the other Japanese exporting producers that did
not co-operate and for which the investigation has shown that they are still operating
on the Community market, the Commission made use of best facts available, in
accordance with Article 18 of the Basic Regulation.

(39)

Therefore, the apparent Community consumption of TCHs was assessed on the basis
of:

–

–

the volume of sales in the Community as provided by the Community industry
and

information on the sales volume of Japanese exporting producers in the
Community submitted by the Community industry and established on the basis
of contracts and tenders lost by the Community industry to all Japanese
information was
exporting producers on the Community market. This
considered reliable given the transparent nature of the market in terms of size
and number of market participants,
it being largely supplied via tenders.
Moreover,
the information provided by users confirmed the information
supplied by the Community industry on the activity of the Japanese exporting
producers.

(40) Given the low degree of co-operation and the fact that the statistical information
available from Eurostat in this respect was considered not to be reliable, it could not be
established whether TCHs were imported as such from Japan. However, regardless of
their origin, these TCHs have been effectively sold under the respective brand names
on the Community market and have to be therefore included in the Community
consumption for this product.

10

Given that there are only a very limited number of market participants, the figures relating to them had
to be indexed for confidentiality reasons.

10

(41) On this basis, the investigation has shown that, whereas consumption was stable in
1995 and 1996, there was an overall expansion in 1997, which continued during the
investigation period. This was due, amongst other reasons, to the sales of TCHs for
broadcasting the football World Cup held in France in 1998 and to the introduction of
a new type of TCH, i.e. camcorders, in the market which started from 1997. In overall
terms, from 1995 to the investigation period, Community consumption increased by
54%, reaching around 1 500 units during the investigation period.

3. Imports and sales of TCHs by the Japanese exporting producers in the Community

(42)

(43)

(44)

(45)

confirmed by the

above mentioned anti-circumvention, parts

Further to the imposition of the definitive anti-dumping duty on imports of TCHs
originating in Japan in 1994, these imports have in any event decreased significantly.
and US
As
investigations, these imports have been replaced by imports of certain parts of TCS
originating in Japan which are being subsequently assembled in the Community by
certain Japanese exporting producers and, in the case of one Japanese exporting
producer, with incomplete TCHs imported from the US.
the current
investigation has shown that Japanese exporting producers have continued to sell
TCHs on the Community market under their brand names as explained below.

Indeed,

Thus, the decrease of imports of TCHs originating in Japan has to be seen as a
consequence of the anti-dumping duty in force since 1994. The fact that these imports
have been replaced by sales of TCHs assembled in the Community incorporating parts
originating in Japan shows already that, as explained below, there is a likelihood that
imports from the country concerned would take place at the same levels as in the
original investigation in case anti-dumping measures are not maintained.

4. Economic situation of the Community industry

Pursuant to Article 3 (5) of the Basic Regulation, all relevant economic factors and
indices having a bearing on the state of the Community industry were examined.

The economic indicators relating to the situation of the Community industry have to
be seen in the light of previous investigations concerning TCS originating in Japan, i.e.
the original investigation in 1994 and the subsequent anti-absorption investigation
which led to an increase of the rates of that anti-dumping duty. The present
investigation has shown that the latter had a positive effect on the situation of the
linked to technological
Community industry.
development also had an impact on some of the indicators below, i.e. the above
mentioned introduction of the camcorders, a new kind of TCHs, in the market as from
1997 and the development of the new generation of digital TCHs which also started in
1997.

In addition,

two other

factors

4.1. Production

(46)

Total production of TCHs of the Community industry significantly decreased between
1995 and 1996, i.e. by 32%, then increasing again steadily between 1997 and the
investigation period, without recovering however the levels of 1995. In this respect,
production has followed the evolution of the Community market since 1997.

11

(47)

(48)

(49)

4.2. Production capacity and capacity utilisation

The production capacity of the Community industry remained stable during the IIP.
Capacity utilisation for TCHs went down between 1995 and 1996,
i.e. by 32%,
increasing again towards the investigation period. This development likewise reflects
the above mentioned increase in production volumes as from 1997.

4.3. Sales volume

The sales of the Community industry decreased between 1995 and 1996 by 10% and
they increased from then to 1997 and the investigation period, i.e. in overall terms they
went up by 21% between 1995 and the investigation period reaching around 850 units,
without, however, matching the expansion of the Community consumption, which
substantially increased, i.e. by 54%, during the same period of time.

4.4. Market shares

The steady decrease of the market share of the Community industry between 1995 and
the investigation period by more than 16 percentage points, reaching around 60%
during the investigation period, shows that the Community industry did not benefit
from the expansion of the Community consumption or from the favourable market
conditions from 1997 which resulted from the conclusion of the anti-absorption
investigation.

4.5. Employment

(50)

Employment has remained stable as from 1996, in which year it had increased by
20%, as a result of the introduction of the camcorders and the new generation of
digital TCS.

4.6. Investment

(51)

(52)

Investments decreased substantially between 1995 and 1996, i.e. by 21%, following
the negative evolution of production and sales of the Community industry. They then
increased substantially in 1997, by around 100%, due, amongst other reasons, to the
R&D investments linked to the development of the new generation of digital TCS but
sharply decreased again in the investigation period.

4.7. Profitability

In 1995 and especially in 1996, the Community industry suffered significant losses
which only diminished as from 1997 at a time when, amongst other things, the rate of
the anti-dumping duty imposed on TCS originating in Japan was raised and
camcorders were successfully introduced on the market. Throughout this period,
however, sales of the Community industry remained loss-making. These losses were
still at a level of around -10% on net sales during the investigation period.

12

5. Conclusion on the situation in the Community market

(53)

The investigation has shown that anti-dumping duties have very rarely been paid
during the IIP. Indeed, as from the imposition of an anti-dumping duty on imports of
TCHs originating in Japan, they have been replaced by imports of parts of TCHs
originating in Japan, which have been subject to anti-circumvention and anti-dumping
investigations as from 1998. However, the development of the market after the
imposition of the measures reveals that Japanese exporting producers have continued
to sell TCHs on the Community market.

(54) As concerns the pricing behaviour of the Japanese exporting producers, the anti-
absorption investigation concluded in 1997 showed that export prices of the Japanese
exporting producers had gone below the level of 1994.

(55) After the imposition of the anti-dumping measures in 1994, and during the whole IIP,
the situation of the Community industry improved as regards some of the economic
indicators examined. Continued efforts to rationalise the production process and new
investments were made, showing an industry that is still viable. However, the overall
assessment of the economic indicators during the IIP does not show such a favourable
development. Indeed, during the IIP, the Community industry's sales volume did not
follow the growing trend of the market and only increased by 21% whilst
the
Community consumption expanded by 54%. These opposing trends resulted in a loss
of market share by the Community industry by 16 percentage points. Furthermore,
even though its losses diminished during the IIP, the Community industry continued to
suffer losses of around - 10% during the investigation period whereas in such an
industry, a profit level of 15% must be considered necessary to finance the investment
needed to keep up to date with technological development.

(56) On the basis of the above, it is therefore concluded that, in spite of the measures in
force, due to the continued price pressure exerted by the Japanese exporting producers,
the Community industry remained in a difficult economic situation. This price
pressure prevented the Community industry from fully recovering from the effects of
the previous and ongoing dumping practices.

F. LIKELIHOOD OF CONTINUATION AND/OR RECURRENCE OF INJURIOUS
DUMPING

(57)

(58)

(59)

11

In order to assess the likely effect of the expiry of the measures in force, and taking
into account that the Community industry is still in a difficult situation, the following
elements were considered, in addition to those already mentioned above.

The current investigation has shown that Japanese exporting producers have continued
to sell TCHS on the Community market under their brand names11.

Indeed, sales of TCHS by Japanese exporting producers in the Community increased
considerably in terms of volume between 1995 and the investigation period, i.e. by
157%, reaching around 600 units during the investigation period.

The origin of these TCS remains unclear since it could not be determined whether they were imported
as such from Japan or if, as mentioned above, only parts thereof were imported in order to be
subsequently assembled in the Community.

13

(60) With respect to the development of their market share, the overall trend shows a
constant and significant increase between 1995 and the investigation period, i.e. by
more than 16 percentage points,
reaching a level of around 40% during the
investigation period.

(61) As regards sales prices of the Japanese exporting producers for TCHS sold on the
Community market, the investigation has shown that they were significantly below the
Community industry’s sales prices.

(62)

The Japanese exporting producers provided no information on sales prices. However,
it was established that sales made via tenders both by the Community industry and the
Japanese exporting producers represented an important part of the overall sales of
TCHs during the IP (around 40%). On the basis of tenders for which information was
available from the Community industry and users, prices offered by the exporting
producers were, in general, lower than prices offered by the Community industry both
for the total tender12 and for TCHs taken in isolation. In one of the tenders analysed,
the global price offered by a Japanese exporting producer was 37% lower than the one
offered by the Community producer. In this tender, the Community producer had to
grant an additional discount of more than 40% in order to win the tender. Another
tender in a different Member State showed that, in the second round of negotiations
and despite having granted significant discounts between the first and the second
round, the final offer of the Japanese exporting producer was still around 20% lower
than the offer of the Community producer participating in the tender. In these
circumstances, the latter lost the tender.

(63)

It was likewise established that the low prices offered during a tender necessarily
influence all prices negotiated in follow-up transactions and in subsequent tenders held
in the same Member State. It follows that the price behaviour in tenders actually
influenced a significantly higher share of the Community market than the 40% of it
that were governed directly by tenders. Thus, the analysis of the tenders has not only
shown the extent to which the prices offered by the Community industry have been
undercut by those offered by exporting producers during the tenders (up to 37%) but
also the depressive effect of the dumped imports on the sales prices of the Community
industry.

(64)

These price differences should be seen bearing in mind that the market for TCS was
found to be price-sensitive and transparent, with a small number of players, and that
the Community industry suffered losses of around 10%, whereas in this kind of high-
technology industry a profit of 15% must be deemed appropriate so that an industry
can keep up with the pace of technological developments.

(65) On this basis, should the measures be repealed, it can be expected that the Japanese
exporting producers would manufacture again complete TCS in Japan, where, as
mentioned above, the production capacity exists, their R&D departments are located
and where they could benefit from economies of scale. Moreover, it was considered
that the exporting producers would be likely to continue to sell their products on the
Community market at prices significantly lower than those of the Community
industry,
thus contributing to the continuation of the injurious situation of the
Community industry.

12

Calls for tenders usually include complete TCS and not only TCHs.

14

(66) As to the pricing behaviour of the Japanese exporting producers on third countries, on
the basis of the information made available by the Community industry, a parallel was
drawn between the behaviour of Japanese exporting producers in the US and in the
Community. In both markets, Japanese prices were, in general, lower than those of the
Community industry and this during the whole of the IIP, but more in particular in
1998.

(67) More specifically, when analysing the information available on tenders on the North
American markets, it was found that the Japanese exporting producers were granting
discounts up to 70% off their price lists and that prices offered by them were
consequently up to 50% lower than prices offered by the Community industry. In
addition, certain elements of a TCS or even other equipment sold in combination with
TCS in the same tender, were sometimes offered free of charge or with high discounts
such as the already mentioned 70%.

(68)

(69)

Furthermore, on the basis of the information available on tenders held in Latin-
America, prices offered by the Japanese exporting producers were also lower than
those of the Community industry in similar proportions and the same behaviour as to
discounts and products offered free of charge existed.

From the above, it was concluded that, in the absence of measures, prices of Japanese
exporting producers could at
levels found on the
remain at
Community market which are significantly lower than those of the Community
industry and could even potentially fall to levels comparable to the prices for imports
originating in Japan into the US, Canadian and Latin-American markets or to the level
of prices found in the original investigation.

the current

least

Conclusion on the recurrence of injurious dumping

(70)

In view of the above, namely of the following factors:

–

–

–

–

–

despite the measures in force, the Community industry was still in a difficult
economic situation;

the sales of TCHS manufactured by the Japanese exporting producers held an
exceptionally strong position on the Community market and were made at
extremely low prices by comparison with the prices of the Community
industry;

the prices which Japanese exporting producers might charge in the absence of
anti-dumping measures were determined as potentially very low if one
considers the producers' behaviour in the North American and Latin-American
markets, where their prices were lower than those of the Community industry;

the information available on the production capacity in Japan as well as on the
possibility to expand it when necessary in order to react to an expansion of
demand gave an indication that the Japanese exporting producers had the
potential to raise their production and export volumes;

even though a high anti-dumping duty reaching up to 200% was in force, the
Japanese exporting producers were able to offer prices which were lower than
those of the Community industry, thus giving an indication that they are fully

15

capable of maintaining an aggressive pricing policy in spite of the measures in
force;

is concluded that, should the measures be repealed,

it
there is a likelihood of
recurrence of injurious dumping and that the measures currently in force should
therefore be maintained.

G. COMMUNITY INTEREST

1. Introduction

(71) According to Article 21 of the Basic Regulation, the Commission examined whether a
prolongation of the existing anti-dumping measures would be against the interest of
the Community as a whole. The determination of the Community interest was based
on an appreciation of all the various interests involved.

(72)

(73)

In order to assess the likely impact of a continuation or non-continuation of the
measures, the Commission requested information from the Community industry and
users of TCS. The Commission sent questionnaires to more than sixty users of the
product concerned. Fifteen replies were received, although the information provided
was incomplete in many cases.

It should be recalled that, in the previous investigation, the adoption of measures was
considered not to be against the interest of the Community. Furthermore, it should be
noted that the present investigation is a review, thus analysing a situation in which
anti-dumping measures are already in place. Consequently, the current investigation
should enable the assessment of any undue negative impact the current anti-dumping
measures may have had in the past on the parties concerned.

(74) On this basis it was examined, whether, despite the conclusions on the likely
continuation and/or recurrence of injurious dumping, compelling reasons exist which
would lead to the conclusion that it is not in the Community interest to maintain
measures in this particular case.

2. Interests of the Community industry

(75)

It is considered that without maintaining the anti-dumping measures established in the
injurious dumping is likely to continue or recur and the
previous investigation,
situation of the Community industry, which is still fragile, will further deteriorate.

(76) As shown above, the Community industry has been affected by the low priced sales of
is
TCHs by Japanese exporting producers in the Community during the IIP. It
therefore considered that the objective of the anti-dumping measures under review, i.e.
to re-establish fair competition in the Community market between the Community
producers and their exporting counterparts in third countries, has not been fully met.

(77)

The Community industry has proven to be a structurally viable and successful
industry, able to adapt its product range to the changing competitive conditions on the
market and even to gain some technological lead in the development of the digital
technology, this being confirmed in particular by its investment during the IIP.

16

(78) However, it cannot be excluded that this industry would reduce its manufacturing
activities for the product concerned in the Community if the anti-dumping measures
were not maintained. This conclusion is justified in view of the duration of the
negative profitability situation (during the investigation period,
the Community
industry has suffered around 10% losses). As mentioned above, without anti-dumping
measures, imports of TCHs originating in Japan would likely restart and their price-
depressive effect will continue to frustrate all efforts of the Community industry to
regain a satisfactory margin of profitability, which is especially needed to keep up
with the pace of technological development in this kind of industry. In addition, since
certain operations of the TCHs production are labour intensive, it is highly possible
that they would be de-located to low labour cost countries in order to reduce such
costs.

(79)

Indeed, should the deteriorated economic situation of the Community industry
continue, it might be forced to reduce its manufacturing activities in the Community,
and around 250 jobs directly linked to the product concerned would be endangered.
Should however anti-dumping duties be maintained, this industry will be able to
maintain and further develop its activities in the Community. Also, a further number
of jobs linked indirectly to the production of TCS, mainly in R&D would be secured.
Thus, overall employment in the Community in relation to TCS would be secured and
can even be expected to rise should anti-dumping measures be maintained.

(80) As to R&D developments, the production of television camera systems has spin-off
effects which are mainly related to the development of a part of the TCHs, i.e. the
CCD block, since it components are used as well for other applications such as
security
applications.
Furthermore, the existence of a Community industry manufacturing TCS has an
impact on the entire television industry, i.e. from the development and manufacturing
of broadcast equipment to the production of television sets and recorders, but it may
also have an influence on the standards set for the Community television sector in the
near future.

telecommunications

systems, medical,

industrial

and

(81) Given the above, it was concluded that to prolong the existing measures in order to
ward off the adverse effects of dumped imports which could endanger the existence of
the Community industry and consequently a number of jobs was necessary. It has also
to be considered that if this high-technology industry disappears, there would be a
negative impact on the television industry in general.

3. Interests of related importers and economic operators in the Community

(82) As regards the economic operators in the Community related to Japanese exporting
producers, it is likely that the decision to maintain the anti-dumping measures would
have positive effects with regard to production and employment in the Community,
since some of the manufacturing activities of TCS which took place in the Community
would even become more important as evidenced following the initiation of the above
mentioned US investigation and would not be relocated to Japan.

17

4. Interests of users

(83) Users of TCS were mainly licensed broadcasting companies that broadcast their own
there were also licensed
programmes by using their own equipment. However,
broadcasters which did not broadcast
their own programmes as well as facility
companies which supply equipment including camera systems as well as crews to their
customers and, finally, rental companies which provide camera and other equipment to
various customers. All these users of TCS usually purchased directly from the TCS
producers.

(84) Only fifteen out of the sixty users to which the questionnaire was sent by the
Commission replied and partially co-operated. The low level and degree of co-
operation is in itself an indication that this sector did not suffer any substantial
negative effect on its economic situation as a result of the anti-dumping measures.

(85)

(86)

(87)

This conclusion was in line with findings in earlier proceedings where it was found
that TCS were not a significant cost factor for the users, since in relation to their
production of broadcast programmes, they only accounted for a small proportion of
their total costs. Indeed, when looking only at equipment costs of the users, the cost of
a TCS represented around 10% in a studio and reached up to 20% in a small outside
broadcasting vehicle. However, when looking at the total costs of a broadcasting
company, and not only at the equipment, the percentage decreased since there were
other more important costs such as programme production, personnel, overheads, etc.
which were well above the mere cost of a TCS. In addition, the average life time of a
TCS has been estimated by the co-operating users at around eight years reaching,
exceptionally, more than fifteen years, which means that TCS were far from being a
recurrent cost factor for the users.

Likewise, in general terms, the effects on either category of users were relatively
limited when compared to the size of the global turnover of broadcasting companies
and of other companies dealing with TCS, i.e. the purchase of a TCS represents
around 0.1% of the total turnover of broadcasting companies and around 1% of the
turnover of production and rental companies.

The investigation has also shown, as mentioned above, that prices of TCS in the
Community in no way significantly increased following the imposition of an anti-
dumping duty concerning imports of TCS originating in Japan. Indeed, certain users
continued, and even started, to purchase TCS manufactured by the Japanese exporting
producers in spite of the measures in force. These measures therefore did not
constitute a deterrent for TCS users to change their sources of supply. Thus, any
increase of the import price was apparently not such as to constitute any significant
inconvenience.

(88) On the basis of the above, it can be ruled out that the anti-dumping measures had any
significant negative influence on the cost situation and on the profitability of the users
of the product concerned. Thus, the result of the anti-dumping measures in force has
not been to close the Community market to TCS manufactured by Japanese exporting
producers, but rather to counter the unfair trade practices and to remedy to some extent
the distorting effects of dumped imports.

18

(89)

Since the measures have been in place for a certain period and would be maintained at
the same level, it can be concluded that this would not imply any deterioration of the
situation of the users.

5. Competition and trade distorting effects

(90) With respect to the effects on competition in the Community, some interested parties
have argued that, should the anti-dumping duties be maintained, this would lead to the
disappearance of the exporting producers concerned from the Community market, thus
considerably weakening competition, and to an increase of the prices for TCS.

(91) However, it appears more likely that the Japanese exporting producers will continue to
sell TCS albeit at non-injurious prices, as they have a solid technological basis, a
strong market position and manufacturing facilities
in the Community. This
conclusion is confirmed by the developments further to the imposition of the anti-
dumping duty in 1994 and to the increase of the rate in 1997, which did not lead to any
harmful effects for the competition on the Community market.

(92) Given the rapid technological development in this sector, competition will, without
any doubt, remain strong after the continuation of anti-dumping-measures. Given also
the fact that a number of actors in the market for TCS have nowadays established their
manufacturing facilities for these products in the Community, they will be able to
satisfy the user's demand and to offer a wide range of models. Thus, the continuation
of the anti-dumping measures in force will not limit the user's choice or weaken
competition.

6. Conclusion on Community interest

(93) Based on the above, it is concluded that there are no compelling reasons on grounds of

Community interest against the prolongation of the existing anti-dumping measures.

H. ANTI-DUMPING MEASURES

(94) All parties concerned were informed of the essential facts and considerations on the
basis of which it was intended to recommend the maintenance of the existing anti-
dumping duty in respect of imports of TCS originating in Japan. They were also
granted a period within which to make representations subsequent to this disclosure.
No comments were received which were of a nature to change the above conclusions.

(95)

It follows from the above that, as provided for by Article 11 (2) of the Basic
Regulation, the anti-dumping duty currently in force with regards to imports of TCS
originating in Japan imposed by Council Regulation (EC) No 1015/9413, as amended
by Council Regulation (EC) No 1952/9714, should be maintained.

13

14

OJ L 111, 30.4.1994, p.106. as last amended by Council Regulation (EC) No 176/2000, OJ L 22,
27.1.2000, p.29.
OJ L 276, 9.10.1997, p.20.

19

HAS ADOPTED THIS REGULATION:

Article 1

1. A definitive anti-dumping duty is hereby imposed on imports of television camera systems
and parts thereof, falling within CN codes ex 8525 3090 (Taric code: 8525 30 90*10),
ex 8537 10 91 (Taric code: 8537 10 91*91), ex 8537 10 99 (Taric code: 8537 10 99*91),
ex 8529 90 81 (Taric code: 8529 90 81*38), ex 8529 9088 (Taric code: 8529 90 88*32),
ex 8543 8995 (Taric code: 8543 89 95*39), ex 8528 21 14 (Taric code: 8528 21 14*10),
ex 8528 2116 (Taric code: 8528 21 16*10) and ex 8528 2190 (Taric code: 8528 21 90*10),
originating in Japan.

2. The television camera systems may consist of a combination of the following parts,
imported either together or separately:

(a)

(b)

(c)

(d)

(e)

camera head with three or more sensors (12 mm or more charge-coupled device pick-
up devices) with more than 400 000 pixels each, which can be connected to a rear
adapter, and having a specification of the signal-to-noise ratio of 55 dB or more at
normal gain; either in one piece, with the camera head and the adapter in one
housing, or separate;

a view finder (diagonal, of 38 mm or more);

a base station or camera control unit (CCU) connected to the camera by a cable;

an operational control panel (OCP) for camera control (i.e. for colour adjustment,
lens opening or iris) of single cameras;

a master control panel (MCP) or master set-up unit (MSU) with selected camera
indication, for the overview and for adjustment of several remote cameras.

3. The duty does not apply to:

(a)

(b)

(c)

(d)

(e)

lenses;

video tape recorders;

camera-heads with a recording unit in the same, inseparable, housing;

professional cameras which cannot be used for broadcast purposes;

professional cameras listed in the Annex (Taric additional code: 8786).

4. When the television camera system is imported with the lens the free-at-Community-
frontier value used in applying the anti-dumping duty shall be that of the television camera
systems without the lens. If this value is not specified on the invoice the importer shall declare
the value of the lens at the time of release for free circulation and shall submit appropriate
evidence and information on that occasion.

20

5. The rate of the anti-dumping duty shall be 96,8% of the net, free-at-Community-frontier
price, before duty (Taric additional code: 8744) except for the products manufactured by the
following companies for which the rate shall be as follows:

–

–

–

Ikegami Tsushinki Co. Ltd: 200,3 % (Taric additional code: 8741),

Sony Corporation: 108,3 % (Taric additional code: 8742),

Hitachi Denshi Ltd: 52,7 % (Taric additional code: 8743).

6. The provisions in force concerning customs duties shall apply.

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

Article 2

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

Done at Brussels,

For the Council
The President

21

ANNEX

List of professional camera systems not qualified as broadcast camera systems which are
exempted from the measures

Company name

Camera heads

Viewfinder

Camera control unit

Operational
control unit

Master control
unit (*)

Camera adapters

Sony

DXC-M7PK

DXF-3000CE

CCU-M3P

RM-M7G

__

CA-325P

DXC-M7P

DXF-325CE

CCU-M5P

DXC-M7PH

DXF-501CE

CCU-M7P

DXC-M7PK/1

DXF-M3CE

DXC-M7P/1

DXF-M7CE

DXC-M7PH/1

DXF-40CE

DXC-327PK

DXF-40ACE

DXC-327PL

DXF-50CE

DXC-327PH

DXF-601CE

DXC-327APK

DXF-40BCE

DXC-327APL

DXF-50BCE

DXC-327AH

DXF-701CE

DXC-537PK

DXF-WSCE(1)

CA-325AP

CA-325B

CA-327P

CA-537P

CA-511

CA-512P

CA-513

VCT-U14(1)

DXC-537PL

DXC-537PH

DXC-537APK

DXC-537APL

DXC-537APH

EVW-537PK

EVW-327PK

DXC-637P

DXC-637PK

DXC-637PL

DXC-637PH

PVW-637PK

PVW-637PL

DXC-D30PF

DXC-D30PK

DXC-D30PL

DXC-D30PH

22

DSR-130PF

DSR-130PK

DSR-130PL

PVW-D30PF

PVW-D30PK

PVW-D30PL

DXC-327BPF

DXC-327BPK

DXC-327BPL

DXC-327BPH

DXC-D30WSP(1)

23

Company name

Camera heads

Viewfinder

Camera control unit

Operational
control unit

Master control
unit (*)

Camera adapters

Ikegami

HC-340

VF15-21/22

MA-200/230

RCU-240

__

CA-340

MA-200A(1)

RCU-390(1)

CA-300

CA-230

CA-390

CA-400(1)

VF-4523

VF15-39

VF15-46(1)

VF5040(1)

VF5040W(1)

HC-300

HC-230

HC-240

HC-210

HC-390

LK-33

HDL-30MA

HDL-37

HC-400(1)

HC-400W(1)

Hitachi

SK-H5

GM-5 (A)

RU-C1 (B)

__

__

CA-Z1

CA-Z2

CA-Z1SJ

CA-Z1SP

CA-Z1M

CA-Z1M2

CA-Z1HB

CA-C10

CA-C10SP

CA-C10SJA

CA-C10M

CA-C10B

CA-Z1A(1)

CA-Z31(1)

CA-Z32(1)

SK-H501

GM-5-R2 (A)

RU-C1 (D)

DK-7700

GM-5-R2

RU-C1

DK-7700SX

GM-50

RU-C1-S5

HV-C10

HV-C11

HV-C10F

Z-ONE (L)

Z-ONE (H)

Z-ONE

Z-ONE A (L)

Z-ONE A (H)

Z-ONE A (F)

Z-ONE A

Z-ONE B (L)

Z-ONE B (H)

Z-ONE B (F)

Z-ONE B

Z-ONE B (M)

Z-ONE B (R)

GM-8A(1)

RU-C10 (B)

RU-C10 (C)

RC-C1

RC-C10

RU-C10

RU-Z1 (B)

RU-Z1 (C)

RU-Z1

RC-C11

RU-Z2

RC-Z1

RC-Z11

RC-Z2

RC-Z21

RC-Z2A(1)

RC-Z21A(1)

24

FP-C10 (B)

FP-C10 (C)

FP-C10 (D)

FP-C10 (G)

FP-C10 (L)

FP-C10 (R)

FP- C10 (S)

FP-C10 (V)

FP-C10 (F)

FP-C10

FP-C10 A

FP-C10 A (A)

FP-C10 A (B)

…/…

25

Company name

Camera heads

Viewfinder

Camera control unit

Operational
control unit

Master control
unit (*)

Camera adapters

…/…

Hitachi

FP-C10 A (C)

FP-C10 A (D)

FP-C10 A (F)

FP-C10 A (G)

FP-C10 A (H)

FP-C10 A (L)

FP-C10 A (R)

FP-C10 A (S)

FP-C10 A (T)

FP-C10 A (V)

FP-C10 A (W)

Z-ONE C (M)

Z-ONE C (R)

Z-ONE C (F)

Z-ONE C

HV-C20

HV-C20M

Z-ONE-D

Z-ONE-D (A)

Z-ONE-D (B)

Z-ONE-D (C)

Z-ONE.DA(1)

V-21(1)

V-21W(1)

Matsushita

WV-F700

WV-VF65BE

WV-RC700/B

__

__

WV-AD700SE

WV-F700A

WV-VF40E

WV-RC700/G

WV-F700SHE

WV-VF39E

WV-RC700A/B

WV-F700ASHE

WV-VF65BE (*)

WV-RC700A/G

WV-F700BHE

WV-VF40E (*)

WV-RC36/B

WV-F700ABHE

WV-VF42E

WV-RC36/G

WV-F700MHE

WV-RC37/B

26

WV-AD700ASE

WV-AD700ME

WV-AD250E

WV-AD500E (*)

AW-AD500AE

AW-AD700BSE

WV-F350

WV-F350HE

WV-F350E

WV-F350AE

WV-F350DE

WV-RC37/G

WV-CB700E

WV-CB700AE

WV-CB700E (*)

WV-CB700AE (*)

WV-F350ADE

WV-RC700/B (*)

WV-F500HE (*)

WV-RC700/G (*)

WV-F-565HE

AW-F575HE

WV-RC700A/B (*)

WV-RC700A/G (*)

WV-RC550/G

WV-RC550/B

27

Company name

Camera heads

Viewfinder

Camera control unit

Operational
control unit

Master control
unit (*)

Camera adapters

KA-35E

KA-B35U

KA-M35U

KA-P35U

KA-27E

KA-20E

KA-P27U

KA-P20U

KA-B27E

KA-B20E

KA-M20E

KA-M27E

JVC

KY-35E

VF-P315E

RM-P350EG

KY-27ECH

VF-P550E

RM-P200EG

KY-19ECH

VF-P10E

RM-P300EG

KY-17FITECH

VP-P115E

RM-LP80E

KY-17BECH

VF-P400E

RM-LP821E

KY-F30FITE

VP-P550BE

RM-LP35U

KY-F30BE

VF-P116

RM-LP37U

KY-27CECH

VF-P116WE(1)

RM-P270EG

KH-100U

VF-P550WE(1)

KY-D29ECH

KY-D29WECH(1)

Olympus

MAJ-387N

MAJ-387I

OTV-SX 2

OTV-S5

OTV-S6

Camera OTV-SX

(*)Also called master set up unit (MSU) or master control panel (MCP).

(1) Models exempted under the condition that the corresponding triax system or triax-adapter is not sold on the EC market.

28