Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of certain electronic weighing scales originating in Japan
Date: 2001-02-16
Institutions: European Commission
Subjects: Japan, anti-dumping duty, electronic device, import, measuring equipment, originating product, trade policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.2.2001
COM(2000) 197 final

Proposal for a

COUNCIL REGULATION

imposing a definitive anti-dumping duty on imports of certain electronic
weighing scales originating in Japan

(presented by the Commission)

(1)

(2)

(3)

(4)

(5)

(6)

EXPLANATORY MEMORANDUM

Attached is a proposal for a Council Regulation maintaining the anti-
dumping duties on imports of certain electronic weighing scales (REWS)
originating in Japan.

The review investigation concerning anti-dumping measures on imports of
REWS originating in Japan was initiated on 25 April 1998, under Article
11(2) and Article 11(3) of Council Regulation (EC) No 384/96 (the basic
Anti-dumping Regulation). In accordance with these Articles the measures
remain in force pending the outcome thereof.

The proposal to maintain the definitive anti-dumping duties is based on the
likelihood of recurrence of dumping and injury identified during the review
investigation.

The co-operating interested parties were informed of the essential facts and
considerations on the basis of which the Commission intended to recommend
to this
that definitive anti-dumping duties be maintained. Subsequent
disclosure comments were received from an importer which have been taken
into consideration but did not alter the basic conclusions of the investigation.

No co-operation was received from users. In reviewing all the interests
involved in the light of the comments received, and since the measures have
been in place for a certain period, it can be concluded that maintaining the
measures would not imply any significant adverse effects on users.

In the light of the above the Commission therefore proposes that the Council
approve the maintaining of an anti-dumping duty on imports from Japan
which range from 15,3 % to 31,6 %. Taking into account the duration of the
investigation, it is considered appropriate that the duration of the measures
should be limited to four years.

2

Proposal for a

COUNCIL REGULATION

imposing a definitive anti-dumping duty on imports of certain electronic
weighing scales 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 Article 11 thereof,

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

Whereas:

1.

(1)

2.

(2)

1

2

3

4

5

A.

PROCEDURE

Measures subject to review involving Japan

In April 1993, by Regulation (EEC) No 993/932,
imposed
definitive anti-dumping measures on imports of certain electronic weighing
scales originating in Japan.

the Council

Measures in force involving other countries

In October 1993, by Regulation (EEC) No 2887/933, the Council imposed
definitive anti-dumping measures on imports of certain electronic weighing
scales originating in Singapore. In 1995 these measures were modified by
Regulation (EC) No 2937/954 following an investigation which showed that
the dumping margin had increased as a result of the duties being absorbed.
These measures are also subject to a review which was opened in October
19985.

OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 2238/2000 (OJ
L 257, 11.10.2000, p. 2).
OJ L 104, 29.4.1993, p. 4.
OJ L 263, 22.10.1993, p. 1.
OJ L 307, 20.12.1995, p. 30.
OJ C 324, 22.10.1998, p. 4.

3

(3)

3.

(4)

(5)

(6)

4.

(7)

(8)

6

7

8

9

On 16 September 1999, the Commission published a Notice in the Offical
Journal of the European Communities6 announcing the initiation of an anti-
dumping proceeding in accordance with Article 5 of Regulation (EC)
No 384/96 (hereinafter
regarding
imports into the Community of certain electronic weighing scales originating
in the People’s Republic of China, the Republic of Korea and Taiwan. This
investigation was concluded in November 2000 by Council Regulation (EC)
No 2605/20007, which imposed definitive anti-dumping measures on imports
of certain electronic weighing scales originating in these countries.

referred to as the “basic Regulation”)

Request for review

Following the publication of a notice of impending expiry of the anti-dumping
measures in force on imports of certain electronic weighing scales originating
in Japan8, the Commission received a request dated 23 January 1998 to review
the measures pursuant to Article 11(2) of the basic Regulation.

The request was lodged on behalf of Community producers whose collective
output constituted a major proportion of the total Community production of
the product concerned.

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 a review, the
Commission initiated an investigation pursuant to Article 11(2) and 11(3) of
the basic Regulation.9 The opening of the Article 11(3) investigation by the
Commission was based on the allegation in the request that dumping margins
had significantly increased since the previous investigation and that the expiry
of the measures would therefore result in increased dumping and injury.

Investigation

The Commission officially advised the Community producers supporting the
review request, the exporting producers, importers and Eurocommerce (a user
association representing multiple and small users in the Community) which
were known to be concerned. Representatives of the exporting countries were
also officially advised. Interested parties were given the opportunity to make
their views known in writing and to request a hearing within the time limits set
out in the Notice of initiation of the review.

The Commission sent questionnaires to the parties known to be concerned and
received replies
from three Community producers and two Japanese
producers, only one of which had exported the product concerned to the
Community during the investigation period. The Commission also sent

OJ C 262, 16.9.1999, p. 8.
OJ L 301, 30.11.2000, p. 42.
OJ C 329, 31.10.1997, p. 6.
OJ C 128, 25.4.1998, p. 11.

4

questionnaires to importers and the user association. Two importers replied;
there was no response from the user association or any individual users.

(9)

The Commission sought and verified all the information it deemed necessary
for the purposes of determining the likely continuation or recurrence of
dumping and injury and the Community interest. Verifications were carried
out at the premises of the following companies:

Exporting producers:

Yamato Scale Co. Ltd., Akashi

Ishida Co. Ltd., Kyoto

Applicant Community producers:

Bizerba GmbH & Co. KG, Balingen, Germany

GEC Avery Limited, (a subsidiary of the General Electric Company, plc),
Birmingham, United Kingdom

Testut/Lutrana S.A., Béthune, France

Importers

Digi Nederland B.V., Purmerend, The Netherlands

Carrin and Co. NV, Antwerp, Belgium

(10)

(11)

The investigation of continuation and recurrence of dumping covered the
period from 1 April 1997 to 31 March 1998 (hereinafter referred to as the
“investigation period”). The examination of continuation and recurrence of
injury covered the period from 1994 up to the end of the investigation period
(hereinafter called the “analysis period”).

The present review exceeded the period of 12 months within which it should
normally have been concluded pursuant
the basic
Regulation, due to the complexity of the investigation and in particular the
impact of the Euro-effect on the investigation (see recital (34)) and the
difficulties in establishing findings given the extent of non co-operation.

to Article 11(5) of

(12) 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 measures. They were also granted a period within which to make
representations subsequent to these disclosures. The comments of the parties
were considered and, where appropriate, the findings have been modified
accordingly.

5

B.

PRODUCT CONCERNED AND LIKE PRODUCT

1.

The product concerned

(13)

investigation,

i.e.
The product concerned is the same as in the original
electronic weighing scales for use in the retail trade (hereinafter referred to as
“REWS”) which incorporate a digital display of the weight, unit price and
price to be paid (whether or not including a means of printing this data) falling
within CN code ex 8423 81 50. REWS have different types or levels of
performance and technology. In this respect,
the industry defines three
segments of REWS; low, mid and top ranges. These vary from stand-alone
REWS, without built-in printers to more sophisticated models with pre-set key
systems and the possibility of integration into computer-related control and
management systems.

(14) Although the potential use of REWS can vary,

there is no significant
difference in the basic physical and technical characteristics of the various
types of REWS. In addition, the investigation has shown that between these
three segments there are no clear dividing lines, models in neighbouring
segments often being interchangeable. In line with the results of the previous
investigation, they have, therefore, to be considered as one single product for
the purposes of this investigation.

2.

Like product

(15)

It was established that the various REWS produced and sold in Japan have,
the same basic
despite differences in size,
technical and physical characteristics as compared to the REWS exported from
Japan to the Community and accordingly have to be considered as like
products.

life span, voltage or design,

Likewise, apart
technical differences, Community-produced
REWS are basically alike in all respects to the REWS exported from Japan to
the Community.

from minor

C.

DUMPING AND LIKELIHOOD OF RECURRENCE OF DUMPING

1.

Preliminary remarks

(16) As indicated above, this investigation is a combination of an expiry review
based on Article 11(2) of the basic Regulation and an interim review based on
Article 11(3), the latter having been initiated to examine information contained
in the request for review indicating that the injurious dumping had increased.
The Commission decided not to pursue this Article 11(3) review because the
volumes sold on the Community market by the exporting producers were low
and there was insufficient evidence for a lasting change in circumstances to be
established. The Commission’s findings are,
therefore, based on those
established under Article 11(2) relating to the likelihood of continuation and
recurrence of injurious dumping should the existing measures be removed.

6

(17) According to Eurostat, some 995 REWS from Japan were imported into the
Community during the investigation period, as compared to 19,000 units in the
previous investigation period on which the measures subject to review were
based. The co-operation in this investigation has been very limited (a total of
imports) with only partial co-operation
35 units or less than 4 % of
forthcoming from two producers, Yamato Scales Co. Ltd. and Ishida Co. Ltd.,
the latter not exporting to the Community market during the investigation
period. This compares to co-operation from four exporting producers in the
previous investigation.

2.

Likelihood of continuation or recurrence of dumping

(18)

In accordance with Article 11(2) of the basic Regulation, the purpose of an
expiry review is to determine whether, or not, the expiry of the measures
would be likely to lead to a continuation or recurrence of injurious dumping.

Likelihood of continuation of dumping

(19)

In examining whether there is a likelihood of continuation of dumping if
measures were removed, it is necessary to verify whether dumping exists at
present and whether any such dumping is likely to continue.

(20) Only two producers submitted comments in response to the Notice of initiation
of the investigation. Both of these co-operated only partially. One had no
exports to the Community during the investigation period and therefore
provided no information on export prices while the other had exported but
provided incomplete information on normal values. Three other producers
which were involved in the previous investigation refused to co-operate
altogether. In these circumstances, the Commission only had access to very
limited information from the Japanese producers in order to determine the
existence of dumping.

(21)

The partial co-operator, Yamato Scales Co. Ltd provided complete
information on its export prices but incomplete information on normal values
as the data provided only covered one third of its domestic sales of the product
concerned (the remaining sales being made to related distribution companies).
The company also failed to provide any data on the selling, general and
administrative costs it had incurred on its domestic sales. A comparison of
these export prices with the incomplete data on normal values indicated that
significant dumping was taking place on this exporter's sales to the
Community. Also, a comparison of these export prices with the constructed
normal value established for this producer in the original investigation also
indicated the existence of significant dumping.

(22) Moreover, one Japanese exporting producer, who accounted for the vast
majority of REWS imports from Japan during the investigation period, when
declaring his non co-operation, admitted that he was dumping on his exports to
the Community. The Commission also examined Eurostat data and the average
price of all exports from Japan derived from that data supported a finding of
dumping in that such price was lower than any normal value established for
the partial co-operator.

7

(23)

In view of the significant non co-operation the above information was
considered as the facts available under the terms of Article 18 of the basic
Regulation. As indicated, this showed the existence of a significant dumping
margin.

(24) Given the exchange rate fluctuations of the Japanese currency since the
previous investigation,
the invoice
the depreciation of
currency, i.e. US dollar, was examined also but it was found that the increased
export prices in yen was partly offset by a significant real fall in dollar export
prices (as reported by Eurostat) since the original case. This was confirmed by
the findings for the partial co-operator where the depreciation of the yen did
not, insofar as could be deduced from the incomplete information received,
result in a lower dumping margin. Moreover, there were clear signs that the
depreciation of the yen may not prove lasting.

the yen against

(25)

In addition to the finding of the existence of significant dumping during the
investigation period, no information was submitted showing that dumping was
the evidence
unlikely to continue should measures be removed. In fact,
these imports would
available to the Commission strongly suggests that
continue to be made at dumped prices for the foreseeable future should the
measures be removed. In particular, it should be noted that the Community
market is attractive for exporters in that, on the basis of information received
from the one partial co-operator, prices there are higher than in other third
country markets (Taiwan, Malaysia) to which this company also exports.

(26)

should be furthermore noted that

It
in Japan prices have remained
systematically higher than elsewhere, a situation which has persisted over a
number of years. Therefore, this situation is considered unlikely to change in
the short or medium term and makes the continuation of dumping very likely.

Likelihood of recurrence of dumping

(27) Given that measures are deemed to have resulted in significantly lower
quantities being exported from Japan to the Community, the question of the
effects of the removal of measures in terms of increased quantities and
dumped prices to the Community, i.e. recurrence of dumping, was examined.

(28)

There are indicators which make a resumption of these imports in significant
quantities from both the partially co-operating and the non co-operating
companies likely. Firstly, the removal of these measures would make the
Community an attractive destination for Japanese exports in that prices appear
to be slightly higher there than in certain other third country markets on which
the exporting producers are present. Thus, given that there are still significant
Japanese exports to these other third country markets, the re-direction of at
least some of these exports to the Community would be very likely. Secondly,
the Community market is a very important one in terms of size and these
exporters are unlikely not to take advantage of any removal of measures.

(29) As to the price of these imports should they resume, there is no reason to
consider that the prices would be any different to those charged for the current
albeit low level of imports. Arguably, lower prices may be a pre-requisite for

8

significantly increased quantities. A recurrence of dumping is also made more
likely by the fact that, as indicated in recital (25), Japanese exports to third
country markets which have no measures in force (Taiwan and Malaysia) are
made at dumped prices. Nor is there any indication that the relatively high
prices in Japan are going to alter in the short term.

D.

SITUATION IN THE COMMUNITY REWS MARKET

1.

Structure of the Community industry

(30)

(31)

(32)

Since the current anti-dumping measures were imposed on imports of REWS
from Japan in 1993, the Community industry has undergone a restructuring
and consolidation programme in order to maintain its competitiveness. A total
of ten companies co-operated in the previous investigation but following the
restructuring process in the industry only six of these companies remained
active in the investigation period. Three of these companies co-operated in the
present investigation. It has become evident during the investigation that other
Community producers restructured along similar lines.

The co-operating Community producers represent 41 % of total Community
production in the investigation period and thus qualify as a major proportion
of the Community production pursuant to Article 4(1) of the basic Regulation.
In
These producers are referred to as “Community industry” hereafter.
addition two large companies supported the review request but did not fully
co-operate with the investigation. The representativity of Community
production supporting the complaint was, therefore, well in excess of 50 %.

It should be noted that for the purposes of the above calculation of the
representativity of Community production, in accordance with Article 4(1)(a)
and (2) of the basic Regulation, any company operating in the Community
related to exporting producers in countries found to be dumping, was excluded
from the definition of total Community production.

2.

Consumption of REWS on the Community market

(33) Consumption in the Community has been calculated using verified sales data
provided by the Community industry, figures in the review request (for sales
of non co-operating Community producers) and import volumes obtained via
Eurostat. Consumption was as follows during the analysis period:

Consumption of
REWS in the
Community (units)

Community
Consumption

1994

1995

1996

1997

Investi-
gation
period

174 448

161 682

172 314

177 391

184 990

9

(34)

The increase in consumption in 1997 and the investigation period was mainly
increase in demand from retailers arising from the
due to a one-off
introduction of the Euro (“Euro-effect”). From 1997 onwards,
retailers
purchased new, Euro-compliant models in anticipation of the introduction of
the Euro. As retailers were, thus, bringing forward their replacement of old
REWS, an increase in demand was created within the Community market and
the volume of sales increased. This improved situation will be of short-term
duration and sales volumes are predicted to drop back to normal levels by
2000, fall further to below normal levels from 2001 before returning to normal
again by 2004.

3.

Imports concerned

Volume of imports

(35) Based on information from Eurostat (using Taric code 8423 81 50 10), REWS
imported from Japan during the analysis period developed as follows:

Volume of imports
(units)

1994

1995

1996

1997

Investi-
gation
period

Imports from Japan

1 320

474

954

1 606

995

Market Share

0,8 %

0,3 %

0,6 %

0,9 %

0,5 %

Price behaviour of exporting producers

(36) As far as prices of the imports are concerned,

it was considered most
appropriate to use the information provided by the sole co-operating producer
which exported to the Community market during the investigation period.
Given the nature of the product, it was considered representative to examine
the exporting producer’s price behaviour during the investigation period by
comparing its export prices with those of similar models sold by the
Community industry. Whilst it was deemed that these models provided a fair
comparison, the low volume of exports sold by this exporting producer,
inevitably makes it difficult to draw clear conclusions. On the basis of the
limited number of transactions available, however, there were indications that
the exporting producer concerned made sales at very low prices in comparison
with those of the Community industry. It was also evident that the decrease in
prices of these models during the analysis period, was roughly mirrored by a
reduction in prices charged by the Community industry (quoted at recital
(42)).

4.

Situation of the Community industry

(37)

In accordance with Article 3(5) of the basic Regulation, the examination of the
impact of the dumped imports on the Community industry included an

10

evaluation of all economic factors and indices having a bearing on the state of
the industry. However, certain factors are not dealt with in detail below
because they were found to be not relevant for the situation of the Community
industry in the course of this investigation. It should finally be noted that none
of these factors necessarily gives decisive guidance.

Production, utilisation of capacity and inventories

(38)

Production of all REWS fell over the period 1994 to 1996, but then increased
in line with the Euro-effect as explained at recital (34). The capacity utilisation
rate of the Community industry increased by 6 % during the analysis period.

Community industry

1994

1995

1996

1997

Investi-
gation
period

Production and capacity

Index 1994 = 100

Volume all REWS
produced

74 829

70 862

69 926

77 057

75 915

Capacity (all REWS)

105 446

106 770

100 338

99 888

100 625

Capacity utilisation rate
(all REWS)

71 %

66 %

70 %

77 %

75 %

It was considered that the level of inventories could not be considered to have
any significant effect on the situation of the Community industry because the
Community industry used a production to order system whereby stocks were
almost non-existent.

Sales volume

(39)

Sales of total REWS units made by the Community industry on the
Community market fell over the period 1994 to 1996, but then increased in
line with the Euro-effect as explained at recital (34)

Sales in units

1994

1995

1996

1997

Investi-
gation
period

Sales of Community
industry

58 245

54 307

53 485

57 794

58 002

11

Sales turnover

(40)

The sales turnover of total REWS made by the Community industry on the
Community market fell over the period 1994 ot 1997, but then increased in
line with the Euro-effect as explained at recital (34).

1994

1995

1996

1997

Investiga-
tion period

87 445

80 679

77 066

74 079

77 902

Sales
turnover in
ECU

Sales of
Community
industry

Market share and growth

(41)

The market share of the Community industry fell from 33,4 % in 1994 to
31,4 % in the investigation period. Therefore, the Communisty industry could
not benefit fully from the growth of the market.

Price development

(42) An analysis of REWS pricing in the Community was made by reference to the
sales prices of all models sold by the Community industry. The development
of weighted average prices for sales to unrelated customers during the analysis
period is as follows:

Development of
Prices of REWS
(ECU/unit)

All REWS

Index

1994

1995

1996

1997

Investi-
gation
period

1 576

1 562

1 508

1 321

1 404

100

99

96

84

89

Sales prices for all ranges decreased between 1994 and the investigation
period by 11 %. This overall average price reduction was consistent across
all model ranges of REWS.

Profitability

(43) As evidenced by the Table below, return on net

turnover was positive
throughout
the beginning of the analysis period, was
consistently below the rate considered necessary for the viability of the
industry. The improved figures for 1997 and the investigation period were due
to two factors; the above-mentioned Euro effect which gave a temporary boost

the period but, at

12

to sales and, to a lesser extent, the effects of large scale restructuring carried
out by the industry as explained at recital (30).

Profit (return on
net turnover) in
the Community

Community
industry

1994

1995

1996

1997

Investi-
gation
period

2,2 %

3,1 %

1,6 %

4,9 %

9,6 %

Other performance related factors

(44) No detailed analysis was carried out on cash flow, ability to raise capital (or
investments) and return on investments because such an analysis would relate
to the situation of the company as a whole. The companies other business lines
represent more than 50 % of total company turnover and, therefore, an overall
analysis would not necessarily be representative for
the product under
consideration.

As concerns the impact on the Community industry of the magnitude of the
actual margin of dumping, given the volume and the prices of the imports
this impact cannot be considered to be
from the countries concerned,
negligible.

Productivity, employment and wages

(45)

The table below shows that during the analysis period employment in the
Community industry decreased by 29 %.

Productivity per
employee

Index 1995 = 100

1995

1996

1997

1998

Investi-
gation
period

Number of units produced

74 829

70 862

69 926

77 057

75 915

Number of employees

1 370

1 305

1 208

1 063

Productivity

55

54

58

72

978

78

(46)

Productivity per employee increased by 42 % over the analysis period.

(47) No detailed analysis was carried out on wages given the importance of other
business lines in the overall companies’ activities. Such an analysis would
relate to the situation of the company as a whole and not necessarily be
representative for the product under consideration.

13

(48)

E.

1.

(49)

(50)

Conclusions on the situation of the Community industry

The Community industry has undergone a major restructuring programme and
has improved production and distribution techniques. However,
it has
continued to suffer from pricing pressures, which have squeezed margins and
resulted in a loss of market share and reductions in employment. Profitability
improved towards the end of the analysis period but, as mentioned at recital
(34), this was mainly due to one-off benefits of the “Euro effect”, and profit
levels are quickly expected to revert to those realised during the main part of
the analysis period. It is thus considered that the Community industry has not
fully recovered from the negative situation identified in the previous
investigation.

LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY

Analysis of the situation of the Japanese exporting producers

The development of imports from Japan is described at recital (35) above.
Japanese exporting producers have continued to sell on the Community
market, and it was submitted by the Community industry that they have
concentrated their sales in markets of certain Member States with specific
models, rather than selling the full range of models. This claim was examined
by the Commission, and it was clear, from sales figures submitted by
importers, that imports were indeed concentrated in certain markets, where the
exporters felt that they could compete, mainly on the basis of low prices,
without the need for large sales and distribution networks necessary for the
Community industry.

The co-operating importers submitted that the reduction in exports from Japan
was due to a transfer of production to other countries, and claimed that, as this
transfer was lasting, there was no likelihood of an increase of REWS output in
Japan and consequent exports to the Community in the future. In this respect it
should be noted that the history of anti-dumping investigations involving the
product concerned suggests that production is mobile, and can be moved to
countries not subject to measures with relative ease. The investigation has
shown that this process was aided by the fact that, when production moved
from Japan to other South East Asian countries in the past, a significant value
of parts (especially electronic components) continued to be produced and
supplied from Japan. On this basis the Commission considers that, if measures
on imports of the product concerned are allowed to expire, contrary to the
submission made by the co-operating importers, it can not be excluded that
exports from Japan would quickly reach their previous levels.In view of the
finding of this investigation that dumping has continued to occur, it can be
expected that such imports would be at dumped prices.

(51)

In addition to the above point regarding the relative ease of relocation of
production,
figures obtained from the partially co-operating exporting
producer show that capacity utilisation, for the existing production facilities in
Japan, was only 50 % in the investigation period. This shows that there is
clearly scope for increased production and exports should measures be

14

(52)

(53)

allowed to lapse, as there are no other major markets which could absorb this
additional production volume.

It should also be noted that this exporting producer also sells at low prices on
other markets (Malaysia and Taiwan for example). At similar levels of sales as
those to the Community market, sales to Malaysia and Taiwan were at prices
around 30 % lower than the sales price (on a CIF basis excluding anti-
dumping duties) of the same model on the Community market. This clearly
suggests that the Community market would be very attractive to Japanese
exporting producers in the absence of anti-dumping measures.

It is also clear that the Community import prices of the small number of
transactions observed during the investigation period are at low levels despite
the anti-dumping measures in force, but given their low volume these could
not exert significant downward pressure on the prices of the Community
industry. If measures were allowed to lapse exporters and importers would
have increased price flexibility. Exporting producers might be able to benefit
from increased export prices but this increase is likely to be limited in order to
increase the attractiveness of their products. However, in the absence of anti-
dumping duties it is likely that import prices would decrease and thus exert
pressure on the Community industry’s prices.

2.

Analysis of the situation of the Community industry

(54)

(55)

The Community market for REWS is predicted to remain relatively stable in
the medium term, reflecting the fact that REWS are relatively mature products.
During the investigation period, the Community industry was enjoying a boost
in sales volume caused by the “Euro effect”, but, as explained at recital (34),
this will not be a permanent phenomenon, and can be expected to be offset by
losses in future sales. In the medium term sales will return to a gradual but
slow decline. The Community industry can therefore expect to see no medium
or long term increases in its sales volume, but its market share can be expected
to be eroded further due to pressure from imports from third countries. This
situation would be made much worse if measures were allowed to lapse with
respect to imports originating in Japan, because a large increase in the import
volumes could be expected, as existing production capacities were more fully
utilised in Japan or as production was switched back to Japan from countries it
moved to after the imposition of anti-dumping duties.

Sales prices have declined on average by 10,9 % during the period 1994 to the
investigation period, and it is expected that this trend will continue as the
Community industry attempts to maintain its market share. The current trend
in retailing away from small shops to large supermarket chains also has a
downward effect on prices because of the bargaining power of these chains.
The supermarket chains negotiate annual purchase contracts for REWS direct
with producers. During the investigation, it became clear that these large
retailers used low-priced offers from Japanese exporting producers to increase
the downward pressure on prices. Bearing in mind the expected increased
attractiveness of the Community market, the use of low price offers can be
expected to have a serious price depressing effect and thus supports the
likelihood of recurrence of injury.

15

3.

Conclusion on recurrence of injury

(56)

In the light of the above analysis it
is concluded that the expiry of the
measures on these imports is likely to lead to a recurrence of injury within the
meaning in Article 11(2) of the basic Regulation. In reaching this conclusion,
the Commission has also taken into account
the Japanese
exporting producers could influence the Community market to a far greater
degree than their market share during the investigation period would suggest.
If anti-dumping duties are removed it is highly likely that the dumping will
continue at much higher volumes of imports. This conclusion is supported
further by the level of unused production capacity available in Japan, by the
relative ease with which production facilities can be transferred between
countries, and by the finding at recital (52) above relating to the continuing
attractiveness of Community market to Japanese exporting producers.

the fact

that

(57)

The expiry of the measures therefore would worsen the situation of the
Community industry, eventually putting at risk the viability of Community
production of REWS.

F.

COMMUNITY INTEREST

1.

General considerations

(58)

(59)

In accordance with Article 21 of the basic Regulation it was examined whether
a prolongation of the anti-dumping duties would be against the interest of the
Community as a whole. The determination of Community interest was based
the Community
on an appreciation of all
industry, the importers and traders and the users of the product concerned. In
order to assess the likely impact of a continuation of the measures,
the
Commission requested information from all
interested parties mentioned
above.

the various interests such as,

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, the present investigation is a review, thus analysing a situation in
which anti-dumping measures are in place. Consequently, the timing and
nature of the present investigation has allowed an assessment of any negative
impact on the parties concerned by the anti-dumping measures imposed.

2.

Interests of the Community industry

(60)

In view of the continuing weak economic situation of the Community
industry, especially in terms of inadequate profitability (at the beginning of the
analysis period and in terms of medium term outlook), employment and
market share, the Commission considers that, in the absence of measures
against injurious dumping, the situation of the Community industry is likely to
deteriorate. The previous review investigation involving REWS from Japan
expected that certain Community producers would probably cease production
of REWS, and that there might be a reduction in employment levels, given the
level of losses incurred by certain producers at that time. Although measures

16

were maintained in 1993, there was still a reduction in employment due to a
consolidation process involving various mergers and acquisitions.

(61) Any further shrinking or deterioration of the Community industry would have
negative implications for employment and investment in the industry itself,
with knock-on effects, both on the industry’s suppliers and on the related
sectors of production within the Community industry. Indeed, the technologies
of REWS and a whole range of other products are related. Examples of these
are other types of electronic scales (such as industrial scales) and appliances
used in the retail sector (such as slicing machines). Any loss of technological
know-how in the REWS products will mean a global loss of competitiveness
in these related sectors..

(62)

In addition, the investigation has demonstrated that the Community industry
has made every effort to meet the competition from Japan and other countries.
Examples of such steps are:

(a) A progression towards greater consolidation (fewer companies).

(b) The closure of excess capacity.

(c) Greater use of modern production techniques (e.g. production to order,

increased mechanisation and computerisation).

(d)

Improvements in productivity.

(e) Reducing costs by contracting out the manufacturing of some

components, and

(f)

Investing in new model ranges.

(63) Community producers have, therefore, shown a willingness and determination
to maintain a competitive presence on the Community market and are capable
of benefiting from the defence from unfair trade afforded by anti-dumping
measures.

3.

Interests of importers

(64)

The Commission considered the interests of importers in the Community and
received questionnaire responses from two companies (listed at recital (9))
which imported the product concerned from Japan during the investigation
period. The importers considered that the measures should be removed as they
were hindering their ability to sell a high quality product which was not
offered for sale by the Community industry. However,
the Commission
considered that the model imported was similar to some of the top range
models produced and sold by the Community industry, that they were in direct
competition with each other and that they were, therefore, like products.

(65) As to the importers’ sales and profitability, it is evident that the removal of
measures would enable importers to reduce their resale prices and increase
margins. In view of the findings on dumping and injury above, this increase in
profitability would be due solely to continued dumping.

17

4.

Interests of users

(66)

(67)

retail outlets,

The Commission sought the co-operation of a body representing the interests
of
the product concerned
(supermarkets), in order to identify if there was any significant impact on any
users.

including multiple users of

The Commission was notified informally by this body that there was to be no
response from retail users. Indeed, no other interested parties made themselves
known. This lack of co-operation is no doubt due to the very small proportion
of users’ total costs represented by REWS. The impact of maintaining
measures, in what is a highly competitive market, can be assumed to be
negligible.

5.

Conclusion

(68)

(69)

The low level of co-operation by users and importers clearly makes it difficult
to draw conclusions on the impact in these sectors. It was concluded, however,
that the impact would be negligible, particularly for the retail sector where the
proportion of costs represented by REWS is very small.

that

It should be recalled, however,
there is likelihood of recurrence of
material injury to the Community industry, which has made great efforts to
remain competitive. The Community industry is temporarily benefiting from
the introduction of the Euro, however, if measures lapsed, and in view of the
diminishing effect of the Euro, it is likely that the Community industry will
deteriorate in the future and threaten the viability of the entire Community
production.

(70) On the basis of the above, the Commission finds that there are no compelling
reasons of Community interest against the maintenance of the anti-dumping
measures.

G.

DEFINITIVE MEASURES

(71)

It will be recalled that the current review was opened under both Article 11(2)
and Article 11(3) of the basic Regulation. As explained at recital (16), the
review. The
Commission decided not
Commission’s findings are therefore based on those established under Article
11(2) relating to the likelihood of continuation and recurrence of injurious
dumping should the existing measures be removed.

to pursue the Article 11(3)

(72)

It
follows
maintained:

that

the existing anti-dumping duties

should therefore be

Yamato Scale Co. Ltd., Akashi

Tokyo Electric Co. Ltd., Tokyo

Teraoka Seiko Co. Ltd., To

15,3 %

22,5 %

22,6 %

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Ishida Co. Ltd., Kyoto

All other companies

31,6 %

31,6 %

(73)

For the reasons explained in recital (11) concerning the duration of the
investigation, it is considered appropriate that the duration of the measures
should be limited to four years,

HAS ADOPTED THIS REGULATION:

Article 1

1.

2.

A definitive anti-dumping duty is hereby imposed on imports of electronic
weighing retail trade scales currently classifiable within CN code ex 8423 81
50 (TARIC code 8423 81 50 10) and originating in Japan.

The duty, calculated on the basis of the net free-at-Community-frontier price
of the product, before duty, shall be:

31,6 % (Taric additional code 8697), with the exception for retail electronic
weighing scales produced by the companies listed below,
to which the
following rate shall apply:

Yamato Scale Co. Ltd., Akashi

15,3 %

(Taric additional code 8696)

Tokyo Electric Co. Ltd., Tokyo

22,5 %

(Taric additional code 8694)

Teraoka Seiko Co. Ltd., Tokyo

22,6 %

(Taric additional code 8695)

3.

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

Article 2

The anti-dumping duties shall be imposed for a period of four years from the date of
entry into force of this Regulation.

Article 3

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

19

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

Done at Brussels,

For the Council
The President

20