Council Regulation (EC) No 2042/2000 of 26 September 2000 imposing a definitive anti-dumping duty on imports of television camera systems originating in Japan
Date: 2000-09-26
Institutions: Council of the European Union
Subjects: Japan, anti-dumping duty, import, recording equipment, television

L 244/38

EN

Official Journal of the European Communities

29.9.2000

COUNCIL REGULATION (EC) No 2042/2000

of 26 September 2000

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 Community (1), 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:

initiated a proceeding pursuant to Article 5 of the basic
Regulation concerning the imports of certain parts of
(‘the parts investigation’).
TCS originating in Japan (5)

(4)

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) (6) (‘the US investigation’).
This investigation was terminated on 1 February 2000,
without the imposition of any measures following the
the single US
closure of
exporting producer of TCS, a company related to a
major Japanese exporting producer of TCS.

the production facilities of

A. PROCEDURE

2. Present investigation

1. Previous investigations

2.1. Expiry review

(1)

(2)

(3)

In April 1994, further to an anti-dumping investigation
initiated in March 1993 (‘the original investigation’), the
Council, by Regulation (EC) No 1015/94 (2) (‘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.

In October 1997, further to an investigation (‘the anti-
to Article 12 of
absorption investigation’) pursuant
Council Regulation (EC) No 384/96 (the ‘basic Regula-
tion’), the Council, by Regulation (EC) No 1952/97 (3),
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.

In June 1998, the Commission, by Regulation (EC) No
1178/98 (4) initiated, pursuant to Article 13 of the basic
Regulation, an investigation concerning the alleged
circumvention of the anti-dumping measures in force by
the assembly of parts and modules of TCS in the
anti-circumvention investigation’).
Community
Subsequently the complaining Community industry
withdrew its complaint and the proceeding was termi-
nated in February 1999. On the basis of the evidence
the Commission
found during

investigation,

(‘the

this

(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 111, 30.4.1994, p.106. Regulation as last amended by Council

Regulation (EC) No 176/2000 (OJ L 22, 27.1.2000, p. 29).

(3) OJ L 276, 9.10.1997, p. 20.
(4) OJ L 163, 6.6.1998, p. 20.

(5)

(6)

(7)

(8)

impending
Following the publication of a notice of
expiry (7) 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.

‘applicant

The request was lodged on 28 January 1999 by Philips
Digital Video Systems and Thomson Broadcast Systems
the
(the
‘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.

Community

producers’

or

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

after

Having determined,
consulting the Advisory
Committee, that sufficient evidence existed for the initia-
tion 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
1999 (8).

(5) OJ C 38, 12.2.1999, p. 2.
(6) OJ C 17, 22.1.1999, p. 4.
(7) OJ C 334, 31.10.1998, p. 15.
(8) OJ C 119, 30.4.1999, p. 11.

29.9.2000

EN

Official Journal of the European Communities

L 244/39

(9)

(10)

(11)

3. Investigation

the

advised

the government of

The Commission officially
applicant
Community producers, the exporting producers in Japan
and the representatives 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 ques-
tionnaire. 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 Chris-

tophe (‘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)

(TCS)

The product under consideration is television camera
currently classified under CN-code-
systems
ex 8537 10 99,
sexex 8525 30 90,
ex 8529 90 81,
ex 8543 89 95,
ex 8529 90 88,
ex 8528 21 14, ex 8528 21 16 and ex 8528 21 90
originating in Japan.

ex 8537 10 91,

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 viewfinder (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

for camera
control (i.e. for colour adjustment lens opening or
iris) of single cameras;

(OCP)

— a master control panel (MCP) or master set-up unit
(MSU) with selected camera indication, for the over-
view 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).

different

configurations,

general, with

(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
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 consid-
eration mentioned above the recording unit alone does
not fall under it.

(17)

The investigation has also shown that analogue broad-
cast 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.

(14) As set out in the definitive Regulation, TCS may consist
of the following parts, imported either together or sepa-
rately:

(18)

— a camera head with three or more sensors (12 mm
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

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.

2. Like product

L 244/40

EN

Official Journal of the European Communities

29.9.2000

(19)

in

and

sold

exporting

Furthermore, the product concerned manufactured by
Japanese
the
producers
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 tech-
nical 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
the
producers
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.

exporting

sold

and

in

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 cooperation

(21) As compared to previous investigations, the level of
cooperation in the present investigation by the Japanese
exporting producers was particularly low. Only one of
the smaller producers of TCS cooperated 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
invest-
igation refused to provide any cooperation although it is
widely known that 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.

2. Likelihood of continuation of dumping

(22) Given the low degree of cooperation 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.

it was therefore considered prudent

to
On balance,
conclude that the current import volumes of TCS origin-
ating 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.

3. Likelihood of recurrence of dumping

(23)

In the absence of cooperation 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
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 invest-
igation from the Community industry and users of TCS.

reliable source,

(24) According to the request, the level of dumping for the
camera head alone is 30,6 %. The corresponding calcula-
tion contains a number of conservative estimates. For
instance, other elements of a TCS have not been taken
into consideration for the purpose of the aforemen-
tioned 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 invest-
igation should measures be repealed.

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

it was

(27) As far as the likely future volume of exports of TCS to
found that
concerned,
the Community is
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 consid-
erable 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 produc-
tion 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
the product
shows

that production capacity

for

29.9.2000

EN

Official Journal of the European Communities

L 244/41

concerned may be created/expanded or reduced in a
short period of time. Should the anti-dumping measures
expire, manufacturing
in the
Community could be transferred to Japan and produc-
tion capacity in Japan could be easily expanded in order
to resume the exports to the Community.

for TCS

activities

(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 estab-
lished 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 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.

for

the existing production
It has been concluded that
capacity, as well as the possibility to increase it if neces-
sary, constituted a potential
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.

(30)

(31)

it was concluded that
exporting producers concerned,
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

(32)

(33)

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, the anti-absorption investigation
and the anti-circumvention investigation have signifi-
cantly changed. It is therefore concluded that, should the
measures be repealed, there is a likelihood of recurrence
of dumping.

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
the
Community industry within the meaning of Article 4(1)
and Article 5(4) of the basic Regulation.

therefore deemed to constitute

(35) As to the other economic operators in the Community
related to the Japanese exporting producers, given the
low degree of cooperation, 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 produ-
cers,
it was considered that they should be excluded
from the Community industry in accordance with
Article 4(1)(a) of the basic Regulation.

E. ANALYSIS OF THE SITUATION IN THE COMMUNITY

MARKET (1)

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 broad-
these
cast purposes. Although, as mentioned above,
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 cooperation from the

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.

(1) Given that there are only a very limited number of market partici-
pants, the figures relating to them had to be indexed for confiden-
tiality reasons.

L 244/42

EN

Official Journal of the European Communities

29.9.2000

(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’).

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

2. Consumption

(38) As mentioned above, only one of the Japanese exporting
producers cooperated in the present investigation. Thus,
as regards the other Japanese exporting producers that
did not cooperate and for which the investigation has
shown that they are still operating on the Community
market, the Commission made use of best facts avail-
able, in accordance with Article 18 of the basic Regula-
tion.

(39)

Therefore,
TCHs was assessed on the basis of:

the apparent Community consumption 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 exporting producers on the
Community market. This information was consid-
ered reliable given the transparent nature of
the
in terms of size and number of market
market
it being largely supplied via tenders.
participants,
information provided by users
the
Moreover,
confirmed
the
information
the
Community industry on the activity of the Japanese
exporting producers.

supplied

by

(40) Given the low degree of cooperation 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 there-
fore included in the Community consumption for this
product.

(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 foot-
ball World Cup held in France in 1998 and to the

(42)

(43)

(44)

(45)

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.
As confirmed by the abovementioned anti-circumven-
tion, parts and US investigations, these imports have
been replaced by imports of certain parts of TCS origin-
ating in Japan which are being subsequently assembled
in the Community by certain Japanese exporting produ-
cers and, in the case of one Japanese exporting producer,
with incomplete TCHs imported from the US. Indeed,
the current
Japanese
exporting producers have continued to sell TCHs on the
Community market under their brand names.

investigation has

shown that

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

to Article 3(5) of

Pursuant
the basic Regulation, all
relevant economic factors and indices having a bearing
on the state of the Community industry were examined.

i.e. the original

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
investigation in 1994 and the
Japan,
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 Community
industry. In addition, two other factors linked to techno-
logical 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.

29.9.2000

EN

Official Journal of the European Communities

L 244/43

4.1. Production

4.7. Profitability

(46)

(47)

(48)

(49)

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.

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
the above mentioned
increase in production volumes as from 1997.

likewise reflects

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,
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.

i.e.

4.4. Market shares

share of

the market

The steady decrease of
the
Community industry between 1995 and the invest-
igation 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-absorp-
tion 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)

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 invest-
igation period.

(52)

(53)

In 1995 and especially in 1996,
the Community
industry suffered significant losses which only dimin-
ished 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.

5. Conclusion on the situation in the Community

market

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
from 1998.
investigations
However, the development of the market after the impo-
sition of the measures reveals that Japanese exporting
continued to sell TCHs on the
producers have
Community market.

anti-dumping

as

(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 indica-
tors during the IIP does not show such a favourable
Indeed, during the IIP, the Community
development.
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. Further-
more, 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 consid-
ered 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 produ-
cers, 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.

L 244/44

EN

Official Journal of the European Communities

29.9.2000

F. LIKELIHOOD OF CONTINUATION AND/OR RECUR-

RENCE OF INJURIOUS DUMPING

offer of the Community producer participating in the
tender. In these circumstances, the latter lost the tender.

(57)

(58)

(59)

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.

(63)

investigation has

The current
Japanese
exporting producers have continued to sell TCHs on the
Community market under their brand names (1).

shown that

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 invest-
igation period.

(64)

(60) With respect to the development of their market share,
trend shows a constant and significant
the overall
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 produ-
cers 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 informa-
tion 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 infor-
mation 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 tender (2) 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

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.

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
it was
from economies of scale. Moreover,
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 continua-
tion of
the Community
industry.

the injurious

situation of

(66) As to the pricing behaviour of the Japanese exporting
producers on third countries, on the basis of the infor-
mation 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,
lower
than those of the Community industry and this during
the whole of the IIP, but more in particular in 1998.

in general,

(1) The origin of these TCS remains unclear since it could not be deter-
mined 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.

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

(67) More specifically, when analysing the information avail-
able 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

29.9.2000

EN

Official Journal of the European Communities

L 244/45

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 %.

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

(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.

least remain at

From the above, it was concluded that, in the absence of
measures, prices of Japanese exporting producers could
levels found on the
the current
at
Community market which are significantly lower than
those of the Community industry and could even poten-
tially 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.

Conclusion on the recurrence of injurious dumping

(70)

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

— despite the measures

the Community
industry was still in a difficult economic situation;

in force,

— 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
Japanese
an indication that
demand gave
exporting producers had the potential to raise their
production and export volumes;

the

— even though a high anti-dumping duty reaching up
to 200 % was in force, the Japanese exporting produ-
cers were able to offer prices which were lower than
those of the Community industry, thus giving an
indication that they are fully capable of maintaining
an aggressive pricing policy in spite of the measures
in force;

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 deter-
mination of the Community interest was based on an
appreciation of all the various interests involved.

(72)

(73)

the measures,

In order to assess the likely impact of a continuation or
non-continuation of
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
investigation is a
should be noted that
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.

the present

(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
in the
Community interest to maintain measures in this partic-
ular case.

is not

it

2. Interests of the Community industry

(75)

It
is considered that without maintaining the anti-
dumping measures established in the previous invest-
igation, injurious dumping is likely to continue or recur
and the 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 TCHs by Japanese
exporting producers in the Community during the IIP. It
is 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.

L 244/46

EN

Official Journal of the European Communities

29.9.2000

(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
this being
confirmed in particular by its investment during the IIP.

technology,

the digital

for

(78) However, it cannot be excluded that this industry would
reduce its manufacturing activities
the product
concerned in the Community if the anti-dumping meas-
ures were not maintained. This conclusion is justified in
view of the duration of the negative profitability situa-
tion (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
is highly
TCHs production are labour
possible that they would be de-located to low labour
cost countries in order to reduce such costs.

intensive,

it

(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 indir-
ectly 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 main-
tained.

(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 its components are used as well for
other applications such as security systems, medical,
industrial and telecommunications applications. Further-
more, the existence of a Community industry manufac-
turing 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.

(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 US investigation
and would not be relocated to Japan.

4. Interests of users

(83) Users of TCS were mainly licensed broadcasting compa-
nies that broadcast their own programmes by using their
there were also licensed
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
finally, rental companies which
their customers and,
provide
to various
customers. All these users of TCS usually purchased
directly from the TCS producers.

and other

equipment

camera

(84) Only fifteen out of the sixty users to which the question-
naire was sent by the Commission replied and partially
cooperated. The low level and degree of cooperation 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)

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 broad-
casting vehicle. However, when looking at the total costs
of a broadcasting company, and not only at the equip-
ment, 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 cooperating 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.

29.9.2000

EN

Official Journal of the European Communities

L 244/47

(86)

(87)

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,
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.

i.e.

The investigation has also shown, as mentioned above,
that prices of TCS in the Community in no way signifi-
cantly 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
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.

the

(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.

(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 deteriora-
tion of the situation of the users.

(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 origin-
ating in Japan. They were also granted a period within
which to make representations subsequent to this disclo-
sure. 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 origin-
ating in Japan imposed by Council Regulation (EC) No
1015/94, as amended by Council Regulation (EC) No
1952/97, should be maintained.

5. Competition and trade distorting effects

HAS ADOPTED THIS REGULATION:

(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 produ-
cers 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 facili-
ties 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.

Article 1

CN

codes

ex 8525 30 90

1.
A definitive anti-dumping duty is hereby imposed on
imports of television camera systems and parts thereof, falling
within
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 90 88 (TARIC code
8529 90 88 32), ex 8543 89 95 (TARIC code 8543 89 95 39),
ex 8528 21 14 (TARIC code 8528 21 14 10), ex 8528 21 16
(TARIC code 8528 21 16 10) and ex 8528 21 90 (TARIC code
8528 21 90 10), originating in Japan.

(TARIC

2.
The television camera systems may consist of a combina-
tion of the following parts, imported either together or sepa-
rately:

L 244/48

EN

Official Journal of the European Communities

29.9.2000

(a) 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;

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

(c) a base station or camera control unit (CCU) connected to

the camera by a cable;

(d) an operational control panel (OCP) for camera control (i.e.
lens opening or iris) of single

for colour adjustment,
cameras;

(e) 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 shall not apply to:

(a) lenses;

(b) video tape recorders;

(e) 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
the television camera
anti-dumping duty shall be that of
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.

5.
The rate of the anti-dumping duty shall be 96,8 % of the
net, free-at-Community-frontier price, before duty (TARIC addi-
tional 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).

The provisions in force concerning customs duties shall

6.
apply.

(c) camera-heads with a recording unit in the same, insepar-

Article 2

able housing;

(d) professional cameras which cannot be used for broadcast

purposes;

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

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

Done at Brussels, 26 September 2000.

For the Council

The President

C. TASCA

29.9.2000

EN

Official Journal of the European Communities

L 244/49

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

ANNEX

Company name

Camera heads

Viewfinder

Camera control unit

Operational control
unit

Master control
unit (*)

Camera adaptors

RM-M7G

—

CCU-M3P

CCU-M5P

CCU-M7P

CA-325P

CA-325AP

CA-325B

CA-327P

CA-537P

CA-511

CA-512P

CA-513

VCT-U14 (1)

DXF-3000CE

DXF-325CE

DXF-501CE

DXF-M3CE

DXF-M7CE

DXF-40CE

DXF-40ACE

DXF-50CE

DXF-601CE

DXF-40BCE

DXF-50BCE

DXF-701CE

DXF-WSCE (1)

Sony

DXC-M7PK

DXC-M7P

DXC-M7PH

DXC-M7PK/1

DXC-M7P/1

DXC-M7PH/1

DXC-327PK

DXC-327PL

DXC-327PH

DXC-327APK

DXC-327APL

DXC-327AH

DXC-537PK

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

DSR-130PF

DSR-130PK

DSR-130PL

PVW-D30PF

PVW-D30PK

PVW-D30PL

DXC-327BPF

DXC-327BPK

DXC-327BPL

DXC-327BPH

DXC-D30WSP (1)

L 244/50

EN

Official Journal of the European Communities

29.9.2000

Company name

Camera heads

Viewfinder

Camera control unit

Operational control
unit

Master control
unit (*)

Camera adaptors

VF15-21/22

MA-200/230

RCU-240

—

VF-4523

VF15-39

VF15-46 (1)

VF5040 (1)

VF5040W (1)

GM-5 (A)

GM-5-R2 (A)

GM-5-R2

GM-50

GM-8A (1)

MA-200A (1)

RCU-390 (1)

—

—

RU-C1 (B)

RU-C1 (D)

RU-C1

RU-C1-S5

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)

CA-340

CA-300

CA-230

CA-390

CA-400 (1)

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)

Ikegami

Hitachi

HC-340

HC-300

HC-230

HC-240

HC-210

HC-390

LK-33

HDL-30MA

HDL-37

HC-400 (1)

HC-400W (1)

SK-H5

SK-H501

DK-7700

DK-7700SX

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)

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)

29.9.2000

EN

Official Journal of the European Communities

L 244/51

Company name

Camera heads

Viewfinder

Camera control unit

Operational control
unit

Master control
unit (*)

Camera adaptors

Hitachi
(cont'd)

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-AD700ASE

WV-AD700ME

WV-AD250E

WV-AD500E (*)

AW-AD500AE

AW-AD700BSE

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-F700MHE

WV-F350

WV-F350HE

WV-F350E

WV-F350AE

WV-F350DE

WV-F350ADE

WV-F500HE (*)

WV-F565HE

AW-F575HE

WV-RC36/G

WV-RC37/B

WV-RC37/G

WV-CB700E

WV-CB700AE

WV-CB700E (*)

WV-CB700AE (*)

WV-RC700/B (*)

WV-RC700/G (*)

WV-RC700A/B (*)

WV-RC700A/G (*)

WV-RC550/G

WV-RC550/B

L 244/52

EN

Official Journal of the European Communities

29.9.2000

Company name

Camera heads

Viewfinder

Camera control unit

Operational control
unit

Master control
unit (*)

Camera adaptors

JVC

VF-P315E

VF-P550E

VF-P10E

VP-P115E

VF-P400E

VP-P550BE

VF-P116

RM-P350EG

RM-P200EG

RM-P300EG

RM-LP80E

RM-LP821E

RM-LP35U

RM-LP37U

VF-P116WE (1)

RM-P270EG

VF-P550WE (1)

KY-35E

KY-27ECH

KY-19ECH

KY-17FITECH

KY-17BECH

KY-F30FITE

KY-F30BE

KY-27CECH

KH-100U

KY-D29ECH

KY-D29WECH (1)

Olympus

MAJ-387N

MAJ-387I

Camera OTV-SX

OTV-SX2

OTV-S5

OTV-S6

(*) 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-adaptor is not sold on the EC-market.

KA-35E

KA-B35U

KA-M35U

KA-P35U

KA-27E

KA-20E

KA-P27U

KA-P20U

KA-B27E

KA-B20E

KA-M20E

KA-M27E