Council Regulation (EC) No 1993/2000 of 18 September 2000 imposing a definitive anti-dumping duty and definitively collecting the provisional anti-dumping duty imposed on imports of styrene-butadiene-styrene thermoplastic rubber originating in Taiwan
Date: 2000-09-18
Institutions: Council of the European Union
Subjects: Taiwan, anti-dumping duty, dumping, import, originating product, synthetic rubber

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Official Journal of the European Communities

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COUNCIL REGULATION (EC) No 1993/2000

of 18 September 2000

imposing a definitive anti-dumping duty and definitively collecting the provisional anti-dumping
duty imposed on imports of styrene-butadiene-styrene thermoplastic rubber originating in Taiwan

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 Community (1), and in
particular Articles 9 and 10 thereof,

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

Whereas:

(1)

(2)

(3)

(4)

(5)

A. PROVISIONAL MEASURES

By Commission Regulation (EC) No 1091/2000 (2)
(hereinafter referred to as ‘the provisional duty Regula-
tion’) provisional anti-dumping duties were imposed on
imports
styrene-butadiene-
styrene thermoplastic rubber (hereinafter referred to as
‘SBS’)
falling within CN codes ex 4002 19 00 and
ex 4002 99 and originating in Taiwan.

into the Community of

countervailing duties were

As a result of a parallel anti-subsidy investigation, provi-
sional
imposed under
Commission Regulation (EC) No 1092/2000 (3) on
imports into the Community of SBS originating in
Taiwan.

B. SUBSEQUENT PROCEDURE

Subsequent to the disclosure of the essential facts and
considerations on the basis of which it was decided to
impose provisional measures, several interested parties
submitted comments in writing. In accordance with the
provisions of Article 20(1) of Regulation (EC) No 384/
96 (hereinafter referred to as the ‘basic Regulation’), all
interested parties who requested a hearing were granted
an opportunity to be heard by the Commission.

The Commission continued to seek and verify all infor-
mation deemed necessary for its definitive findings.

the essential

facts and
All parties were informed of
considerations on the basis of which it is intended to
recommend the imposition of definite anti-dumping
duties on imports of SBS originating in Taiwan and the
definite collection of amounts secured by way of provi-
sional duties on these imports.

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 905/98 (OJ L 128, 30.4.1998, p. 18).

(2) OJ L 124, 25.5.2000, p. 12.
(3) OJ L 124, 25.5.2000, p. 26.

(6)

(7)

(8)

(9)

They were also granted a period within which they
could make representations subsequent
to this dis-
closure.

The oral and written comments submitted by the inter-
ested parties were considered and, where deemed appro-
priate, taken into account for the definitive findings.

Having reviewed the provisional findings on the basis of
the information gathered since then, it is concluded that
the main findings as set out in the provisional Regula-
tion should be hereby confirmed.

C. PRODUCT CONCERNED AND LIKE PRODUCT

The product concerned is styrene-butadiene-styrene ther-
moplastic rubber, which is currently classifiable within
CN codes ex 4002 19 00 and ex 4002 99.

One Community importer claimed that SBS imported
from Taiwan has a different fluidity and resistance than
the
SBS produced in the Community. However,
Commission investigation revealed that producers in
Taiwan produce different types of SBS with exactly the
same composition as those types produced in the
investigation also showed that,
Community. The
although the quality of imports of SBS from Taiwan
may have been lower for one company during the years
1995 and 1996 when this company started its produc-
tion of SBS, the quality quickly attained a level compar-
able to the quality of SBS produced in the Community.
Finally, the investigation showed that Community users
do not make any quality differentiation between SBS
from Taiwan and from the Community. The Commis-
sion concluded that SBS imported from Taiwan and SBS
produced in the Community share the same characteris-
tics and the same level of quality.

(10) Another Community importer claimed that dry and oil-
extended SBS should be considered as two different
products, arguing that dry and oil-extended SBS are used
by different industries. However, different producers and
users of SBS confirmed to the Commission that many
Community users, especially in the footwear industry,
do not differentiate dry and oil-extended SBS. It is there-
fore concluded that the markets of dry and oil-extended
SBS cannot be distinguished.

(11)

SIS

The same company also argued that dry and oil-
extended SBS are close to other types of products, such
as
also
produced by the Community producers of SBS. The
company claimed that there is no justification for distin-
guishing SBS from these other products. However, the

(styrene-isoprene-styrene), which are

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investigation showed that dry and oil-extended SBS have
exactly the same physical composition of butadiene and
styrene, the only difference being the addition of oil at
the end of the production process. This physical compo-
sition clearly distinguishes SBS from other products such
is therefore concluded that dry and oil-
as SIS.
extended SBS should be considered as one distinct
product for the purpose of this investigation.

It

(12) As no other arguments were presented, the findings set
out in recitals 13 to 16 of the provisional duty Regula-
tion are hereby confirmed.

D. DUMPING

(13) One producing exporter from Taiwan contested the
method of calculation of the dumping margin, whereby
normal values were compared to the prices of individual
export transactions.

(14) An examination of the time pattern of export prices
during the investigation period, however, makes clear
that most of the dumping took place during the latter
half of that period. An average calculation would thus
not reflect the full degree of dumping, in the sense of
Article 2(11) of the basic Regulation.

(15)

(16)

The provisional findings as described in recital 25 of the
provisional duty Regulation are therefore confirmed.

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

expressed as

— Lee Chang Yung Chemical Industry Corp.,

Taipei:

— Chi Mei Corp., Tainan:
— Non cooperating exporting producer:

5,3 %
9,1 %
20,0 %

E. INJURY

(b) Price undercutting

(20)

It is recalled that price undercutting was provisionally
established on the basis of a comparison between the
export price (cif Community frontier, duties paid) and
prices charged by the Community industry (ex-works).
The sales prices considered for similar product types
were those to independent customers after deduction of
discounts and rebates.

some comments were
(21) As mentioned in recital 9,
received concerning the
comparability of different
product types but it was found that SBS imported from
Taiwan and SBS produced in the Community share the
same characteristics.

(22)

These comments did not affect the conclusions of the
provisional Regulation, which led to an average price-
undercutting margin, expressed as a percentage of the
Community industry's average selling prices, of 12,3 %.

4. Economic situation of the Community industry

(23) One Community importer pointed out that stocks and
profitability have not been calculated for 1995. As
stated in recitals 46 and 47 of the provisional duty
Regulation, the exact figures of stocks and profitability
could not be obtained accurately because of changes of
accounting systems in one company and changes of
structure in another company. In any event, the invest-
igation showed that the profitability was higher in 1995
than in 1996. This reinforces the injury determination.

(24)

Since no other comments were received regarding the
figures for production, capacity, sales volume, sales
price, market share, stocks, profitability, investments and
employment of the Community industry, the conclu-
sions of recitals 40 to 49 of the provisional duty Regula-
tion are hereby confirmed.

1. Definition of the Community industry

5. Conclusion

(17)

Since no comments were received regarding the defini-
tion of the Community industry, the conclusions of
recitals 31 and 32 of the provisional duty Regulation are
hereby confirmed.

(25) On the basis of the above it was concluded that the
Community industry is suffering material injury as set
out in recital 55 of the provisional duty Regulation.

2. Consumption in the Community

(18)

Since no comments were received on consumption in
the Community, its assessment as indicated in recital 33
of the provisional duty Regulation is hereby confirmed.

(26)

3. Imports of SBS from Taiwan to the Community

(a) Volume of
price

imports, market share, and average import

(19)

Since no comments were received concerning the
volume of imports from Taiwan in the Community, the
market share, and the average price of
imports, the
assessments indicated in recitals 34 to 37 of the provi-
sional duty Regulation are hereby confirmed.

F. CAUSATION

1. Effect of the dumped imports

The Government of Taiwan (GOT) and one Community
importer claimed that the high level of market share of
the Community industry (89 % during the investigation
period) showed that the Community industry could not
suffer injury caused by imports from Taiwan, with a
much smaller market share (6,1 %). In the present case it
has been determined that the imports from Taiwan, with
a strong pressure on prices on a competitive and trans-
parent market (12,3 % undercutting during the invest-
igation period), represented a considerable pressure on
the Community industry. In order to maintain its market
share, the Community industry had to follow the down-
ward price trend (– 47 % price reduction from 1995 to

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the investigation period). As a result, the Community
industry suffered heavy losses (profitability shifted from
+ 14,9 % to – 9,8 % from 1996 to the investigation
period). Finally,
it is considered that the high market
share of the overall Community industry did not protect
it from the unfair dumped competition of Taiwan, and
that the price pressure due to Taiwanese imports is a
major cause of the injury suffered by this industry.

created a

The GOT claimed that the increased investments made
by Community producers has
stronger
competition amongst those producers and resulted in
injury caused by such competitive forces. However, the
investigation revealed that
investments, as stated in
recital 48 of the provisional duty Regulation, have fluc-
tuated since 1995 and do not show an upward trend as
claimed by the GOT. The investments remained at a
rather low level, which would correspond to normal
upgrading of machinery. The most important invest-
ments were made by the producers prior to 1995 at the
time they were establishing their production units.

The GOT also claimed that the injury suffered by the
Community industry could be caused by an increase in
the prices of raw materials. However, the prices of raw
materials, as stated in recital 73 of the provisional duty
Regulation, have been fluctuating since 1995 and do not
show any particular trend. It is more likely that their
variation is cyclical, and therefore they cannot reason-
ably explain the constant depreciation of SBS prices
since 1995.

(27)

(28)

(29) One Community importer argued that

the injury
suffered by the Community industry could be caused by
an increase of costs of production and selling and
general administration costs. However, the investigation
revealed that, while these costs remained roughly at the
same
the
Community producers sales value decreased dramatically
(by 39 %), due to the price decrease.

the period 1995 to 1999,

level over

2. Impact on users

(32)

two Community

the Regulation imposing
Following the adoption of
provisional measures,
importers
expressed concerns about the impact of measures on
their customers. It should be noted that one of these
companies imported from a Taiwanese producer which
did not cooperate in this proceeding, and this importer
to a provisional cumulated subsidy and
was subject
dumping duty rate of 28,2 %. However,
if definitive
measures are imposed, all importers will have the option
to purchase SBS from Community producers, from one
of the cooperating producers in Taiwan, or from another
source not subject to measures.

(33) As a result, it is estimated that the average price increase
caused by definitive measures should be 1,1 %. It was
confirmed during the investigation that such an increase
in prices would be likely to have a limited impact on
users. The impact of duties on several typical users was
examined, where SBS accounted for 40 % of their cost of
production. It was found that the imposition of meas-
ures would bring down the profitability by 0,3 % in
average for that part of their business relating to SBS.

(34)

(35)

Furthermore, as most Community users purchase the
main part of their SBS from Community producers, they
would not experience any price increase for the greater
part of their purchases.

Finally, since no further evidence was provided by the
Community importers, and since the Community users
did not make any comments, the conclusion of recital
the provisional duty Regulation is hereby
86 of
confirmed.

2. Conclusion

3. Conclusion

(30) Given that no other arguments were received regarding
the injury suffered by the Community
the cause of
industry,
imports of SBS from
Taiwan have caused injury to the Community industry,
as stated in recitals 74 and 75 of the provisional duty
Regulation,

is hereby confirmed.

the conclusion that

(36)

received regarding the deter-
The new arguments
mination of the Community interest, are not considered
to be such as to reverse the conclusion that no compel-
ling reasons exist against
the imposition of anti-
dumping measures. The provisional findings are there-
fore confirmed.

G. COMMUNITY INTEREST

H. DEFINITIVE COURSE OF ACTION

1. Interest of the Community industry

(31)

Since no comments were received regarding the interest
of the Community industry, the conclusions of recitals
77 to 81 of the provisional duty Regulation are hereby
confirmed.

(37)

In view of the conclusions reached regarding dumping,
injury, causation and Community interest, it is consid-
ered that definitive anti-dumping measures should be
taken in order to prevent further injury being caused to
the Community industry by dumped imports from
Taiwan.

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1. Injury elimination level

(38) As explained in recital 91 of the provisional duty Regu-
lation, a non-injurious level of prices was determined by
adding to the sales price of the Community industry its
average actual loss and by further adding a profit margin
of 8 % which would cover the Community industry's
cost of production and allow a reasonable profit to be
obtained in the absence of dumped imports from the
country concerned.

(39)

(40)

(41)

(42)

2. Form and level of the duty

In accordance with Article 7(2) of the basic Regulation
the anti-dumping duty rate should correspond to the
dumping margin, unless the injury margin is lower.

This led to the following anti-dumping duty rates for the
cooperating producers in Taiwan:
— Chi Mei Corporation:
— Lee Chang Yung Chemical Industry

9,1 %

Corporation:

5,3 %

For those exporting producers which did not reply to
the Commission's questionnaire or did not otherwise
the dumping margin was
make themselves known,
established on the basis of the facts available, in accord-
ance with Article 18(1) of the basic Regulation.

These producers represent around 70 % of the exports
of the product under consideration from Taiwan to the
Community. Therefore, it was considered appropriate to
establish a residual dumping margin at a level higher
than the highest dumping margin determined for a
cooperating
residual
company. Accordingly,
dumping margin was established on the basis of the
product
specific dumping
margins,

types with the highest
i.e. 20 %.

the

I. COLLECTION OF THE PROVISIONAL DUTY

(43)

In view of the magnitude of the dumping found for the
exporting producers, and in light of the seriousness of
the injury caused to the Community industry,
is
considered necessary that the amounts secured by way
of provisional anti-dumping duty under Regulation (EC)

it

No 1091/2000 be definitively collected to the extent of
the amount of definitive duties imposed,

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
imports of
styrene-butadiene-styrene thermoplastic rubber,
falling within CN codes ex 4002 19 00 and ex 4002 99
(TARIC
and
4002 99 90 91) and originating in Taiwan.

4002 19 00 10,

4002 99 10 10

codes:

The rate of the definitive anti-dumping duty applicable to
2.
for
free-at-Community-frontier price, before duty,
the net,
products produced by the following companies, shall be as
follows:

Company

Rate of duty

TARIC additional
code

Chi Mei Corporation, Tainan, Taiwan

9,1 %

Lee Chang Yung Chemical
Corporation, Taipei, Taiwan

Industry

5,3 %

A127

A128

All other Taiwanese companies

20 %

A999

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

the provisions

in force

Article 2

The amounts secured by way of the provisional anti-dumping
duties on imports originating in Taiwan under Regulation (EC)
No 1091/2000 shall be collected at the rate of the duty defin-
itively imposed. Amounts secured in excess of the definitive
rate of anti-dumping duties shall be released.

Article 3

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

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

Done at Brussels, 18 September 2000.

For the Council

The President

H. VÉDRINE