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

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.02.2001
COM(2001) 91 final

Proposal for a

COUNCIL REGULATION

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

(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
Singapore.

The review investigation concerning anti-dumping measures on imports of
REWS originating in Singapore was initiated on 22 October 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
finding of a likelihood of continuation and/or recurrence of injurious dumping.

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

the interests
No co-operation was received from users. In reviewing all
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 this would not
imply any significant adverse effects on users.

In the light of the above the Commission therefore proposes that the Council
approves the maintaining of anti-dumping duties on imports originating in
Singapore which range from 15,4 % to 31,0 %. 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 Singapore

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)

A.

PROCEDURE

Previous investigations involving Singapore

By Regulation (EEC) No 1103/932 the Commission imposed a provisional
anti-dumping duty on imports into the Community of certain electronic
weighing scales originating in Singapore and the Republic of Korea and
falling within CN code ex 8423 81 50.

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 and the Republic of Korea. In 1995 the
measures applicable to Singaporean exporting producers were modified by
Regulation (EC) No 2937/954 which resulted in an increase in the level of the
duties as it was established that the Singaporean exporting producers had been
absorbing the duties in place.

1

2

3

4

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 112, 6.5.1993, p. 20.
OJ L 263, 22.10.1993, p. 1.
OJ L 307, 20.12.1995, p. 30.

3

2.

(3)

(4)

3.

(5)

(6)

Recent investigations involving the product concerned

In April 1993, by Regulation (EEC) No 993/935,
imposed
definitive anti-dumping measures on imports of certain electronic weighing
scales originating in Japan. These measures are also subject to a review which
was opened in April 19986.

the Council

On 16 September 1999, the Commission published a notice in the Official
Journal of the European Communities7, 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 Regulation (EC)
No 2605/20008, 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 Singapore and the Republic of Korea9, the Commission received a request
to review the measures (applicable to Singapore only) 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 Regulation10. 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 of the measures would therefore result in increased dumping and injury.

5

6

7

8

9

10

OJ L 104, 29.4.1993, p. 4.
OJ C 128, 25.4.1998, p. 11.
OJ C 262, 16.9.1999, p. 8.
OJ L 301, 30.11.2000, p. 42.
OJ C 125, 23.4.1998, p. 3.
OJ C 324, 22.10.1998, p. 4.

4

4.

(7)

(8)

(9)

Investigation

The Commission officially advised the Community producers supporting the
review request, the exporting producers, importers and a user association
known to be concerned, as well as the representatives of the exporting
countries, and gave interested parties 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 two Community producers and one Singaporean
exporting producer. The Commission also sent questionnaires to importers and
Eurocommerce, the association representing multiple and small users in the
Community. There was no formal response from either the importers, users or
the user association.

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 producer:

Teraoka Weigh System PTE Ltd, Singapore

Community producers:

Bizerba GmbH & Co. KG, Balingen, Germany

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

(10)

(11)

The investigation of continuation and recurrence of dumping covered the
period from 1 October 1997 to 30 September 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 (see recital (39)) on the investigation.

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)

The product concerned is the same as in the previous investigation, 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)

The investigation has shown that the various REWS produced in Singapore
and sold on that market have, despite differences in size, life span, voltage or
design, the same basic technical and physical characteristics as compared to
the REWS exported from Singapore to the Community and accordingly have
to be considered as like products.

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

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 the allegation 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 449 REWS from Singapore were imported into
the Community during the investigation period as compared to 4,500 units in
the previous investigation period on which the measures subject to review are
based.

(18)

The sole co-operating Singaporean producer, Teraoka Weigh System PTE
Ltd., reported that it exported 315 units to the Community. Reference to
Eurostat indicates that this represents 70 % of the exports to the Community
which points to significant non-co-operation.

2.

Likelihood of continuation or recurrence of dumping

(19)

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

Likelihood of continuation of dumping

(20)

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. In this respect, the
findings as set out for the Article 11(3) review for the determination of
dumping apply.

Likelihood of recurrence of dumping

(21) As the findings on the likely continuation of any dumping cannot on their own
be considered as decisive on whether measures should be maintained or
repealed, given that they were based on a low volume of exports to the
Community of a model which is gradually being phased out, the likelihood of
recurrence of dumping should measures be removed was also addressed. In
this respect, there are indicators which make a resumption of these imports to
the Community in significant quantities likely. These increased sales would be
likely to materialise from two sources: through the transfer of production
capacity, which is relatively mobile,
from units related to Singaporean
exporting producers in other third country markets back to Singapore; and
through a switch in some of the sales from numerous other third country
markets to the Community to take advantage of the slightly higher prices on
the Community market. Moreover, the existence of measures in force against
Japan reinforces this likelihood.

(22)

The exporting producer argued that it was unlikely to switch any production
back to Singapore which could then be sold to the Community, in particular
the production of the units situated in the Community. But, these units did not
co-operate with this investigation and these arguments were impossible to
evaluate. In any event, the history of this product shows that production is very
mobile and can be changed at relatively short notice in reaction to events such
as the imposition of anti-dumping duties. For example,
the units in the
Community were set up after such duties were imposed.

7

(23) As to the price into the Community of imports of the like product should they
resume, there is good reason to believe that these would be at dumped levels in
particular given that a significant quantity of Singaporean exports to other
third country markets, which have no measures in force (such as United States
of America, Canada, Malaysia, Indonesia, the Republic of Korea, Israel and
Thailand), are made at dumped prices. If the prices charged to these other third
country markets were also charged on any sales to the Community dumping
would also be taking place. This would still be the case if prices were slightly
higher
the slightly higher prices presently prevailing in the
Community, as compared to these other third countries. Moreover, there is no
indication that the relatively high level of prices in Singapore is going to alter
in the short term and it is therefore considered reasonable to assume, taking
due account of the dumping history for this product, that any significant
resumption of exports to the Community would be at prices below those in
Singapore.

to reflect

(24)

The exporting producer argued that there was no evidence that the sales made
to these other third countries by the exporting producer were at dumped levels
and in this respect produced calculations for the exports of one model as well
as the profit margins of this model to the Community. But, this evidence failed
to demonstrate the existence, or otherwise, of dumping on these sales, not least
because the information only concerned one model and the fact that profits on
sales to the Community are irrelevant. In fact, the Commission’s observations
on dumping to these third countries were derived from the information
provided by the exporting producer, on all its sales to third countries, and this
showed a distinct pattern of dumping with export prices in general being
significantly lower than those charged in Singapore.

Determination of dumping under Article 11(3)

(25)

In accordance with the allegation in the review request that dumping margins
would increase if measures were removed, the investigation included a review
of dumping for the investigation period. In this context, only one exporting
producer co-operated in the investigation and during the investigation this
party claimed that it was no longer dumping on its sales to the Community and
that the measures which apply to its exports should be removed.

(26) With respect to the allegation made by the exporting producer that dumping
had disappeared and that measures should be repealed, account was taken of
the fact that measures were in force during the investigation period and that,
therefore, any calculation of dumping could be affected by the existence of
these measures, in particular in relation to the volume and prices of these
imports to the Community. During the period set for this investigation the
quantity exported by the exporting producer was 315 units. This was a much
smaller quantity than the quantity exported during the investigation period
which led to the existing measures but this level, as such, was not considered
insufficient for a recalculation of a new dumping margin. However, most of
these imports were made to an importer in the Netherlands which did not co-
operate in this investigation but which had relations with the exporting
producer which extended beyond a pure buyer and seller relationship. The non

8

co-operation of this party did not permit a proper examination of whether this
relationship may have affected the prices of these exports in question.

(27) Moreover, the exporting producer reported the existence of a related party in
the Community which also did not co-operate in this investigation other than
to submit some general information about its activities. It was therefore not
possible to establish with any certainty whether this company was directly or
indirectly involved in selling the like product in the Community.

(28)

(29)

(30)

(31)

(32)

In addition, the exporting producer based its claim of no dumping on a
comparison of the export prices of one model to the Community when
compared to the prices of a newer version of that model when sold in
Singapore with the latter adjusted by over 20 % to take account of allegedly
higher production costs of the model sold in Singapore.

In any event, the exporting producer did not produce any evidence that these
differences affected the prices charged on the Singaporean market. For
example, no evidence was given in relation to the prices of the old and new
models when the latter was introduced onto the market. Sales to third
countries, other than the Community, were examined to see whether these
could provide a basis for any adjustment and these showed that when the two
models were sold on the same market there was no clear pattern of prices
which could confirm the claim. For some countries, prices of both models
were approximately the same, for some countries the “older” version had the
higher price and for some countries the newer version had the higher price. An
average comparison of the prices of the two models to third countries showed
that the newer version commanded a higher price of about 6 %.

In these circumstances, it was observed that dumping would only disappear if
the claimed adjustment for differences in physical characteristics was granted
whereas if it was not, or only granted to the extent of the price difference for
the two models concerned to third markets, significant dumping would remain.

Thus, the relatively low volume of imports relating to only one model which is
in the process of being phased out and which had no equivalent model sold in
Singapore, the non-participation in the investigation of related or associated
parties in the Community, at least to an extent which extends beyond a normal
buyer and seller relationship, leads to the conclusion that a reliable and lasting
dumping margin cannot be established for the investigation period.

For the same reasons, the claim that measures should be increased is rejected.
Measures can only be revised upwards or downwards on the basis of findings
for the investigation period if these can be considered reliable and lasting. In
this respect, there was no reliable evidence which could justify an increase in
the existence of measures appeared to be having a
measures. In fact,
considerable impact in preventing dumping in significant quantities.

(33)

For those exporting producers located in Singapore, which failed to co-operate
with the investigation, dumping was determined on the basis of the facts
available in accordance with Article 18(1) of the basic Regulation. In this
respect, it is appropriate to consider that the most reasonable facts available

9

are those established for the previous investigation. A residual dumping
margin was therefore determined, by maintaining the previous residual margin
of 31,0 %, expressed as a percentage of the CIF import price at
the
Community border.

Conclusion

(34)

The Article 11(2) review indicates that if measures were removed there would
be a likelihood of continuation and/or recurrence of dumping. The Article
11(3) review could not be pursued as such a review is only justified where a
lasting change in circumstances is shown.

D.

SITUATION IN THE COMMUNITY REWS MARKET

1.

Structure of the Community industry

(35)

(36)

(37)

Since the current anti-dumping measures were imposed on imports of REWS
the Community industry has undergone a
from Singapore in 1993,
restructuring and consolidation programme
to maintain its
in order
competitiveness. A total of nine companies co-operated in the previous
investigation but following the restructuring process in the industry only five
companies remained in the investigation period. As mentioned at recital (8)
above two of these companies co-operated in the present investigation. It has
become evident during the investigation that other Community producers have
restructured along similar lines.

The co-operating Community producers represent 39 % of Community
production in the investigation period, and thus qualify as a major proportion
of the Community production. These producers are referred to as “Community
industry” hereafter. In 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

(38) 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:

10

Consumption of
REWS in the
Community (units)

Community
consumption

1994

1995

1996

1997

Investi-
gation
period

174 448

161 682

172 314

177 391

191 341

(39)

The increase in consumption in 1997 and the investigation period was mainly
due to a one-off
increase in demand from retailers arising from the
introduction of the Euro (“Euro-effect”). From 1997 onwards, retailers realised
more and more that they had to replace old REWS with Euro-compliant
models of REWS. This created increased demand for REWS in the
Community 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 well below normal levels from 2001 before
returning to normal again by 2004.

(40) An alternative consumption figure was provided by the legal representatives of
the exporting producers in Singapore. This figure was an extrapolation largely
based on one Member State using 1996 figures. The Commission considered,
therefore, that the information from the sources mentioned above was more
accurate, complete and up to date.

3.

Imports concerned

Volume of imports

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

Volume of imports
(units)

1994

1995

1996

1997

Investi-
gation
period

Imports from
Singapore

1 785

3 776

863

987

449

Market share

1,0 %

2,3 %

0,5 %

0,6 %

0,2 %

(42)

(43)

The fall in volume of imports in 1996 can largely be attributed to the raising of
the duty rate applicable to Teraoka Weigh System PTE Ltd. following the anti-
absorption review investigation which resulted in the adoption of Regulation
(EC) No 2937/95.

The sales of
the co-operating Singaporean exporting producer on the
Community market during the investigation period involved only one model
(hereinafter referred to as Model A) and were imported during the analysis
period in very low volumes as follows:

11

Volume of imports
(units)

1995

1996

1997

Investi-
gation
period

Model A

1

487

738

315

(44)

Teraoka Weigh System PTE Ltd. submitted that the low market share of
Singaporean imports was de minimis. However, it should be noted that the de
minimis provisions in the basic Regulation only relate to proceedings
involving new cases under Article 5 rather than Article 11 reviews of existing
measures. In addition, it should be expected that the existence of measures
may have a decreasing effect on import volumes from that country.

Price behaviour of exporting producers

(45)

In view of the significant lack of co-operation of the exporting producers, the
Commission had to assess which information was available to carry out an
analysis of the pricing behaviour of the exporting producers. In this respect it
was not considered appropriate to use Eurostat information because this gave
no indication of the models involved. It was, therefore, considered most
appropriate to use the information provided by the sole exporting producer
which provided sales data for the Community market. A comparison between
the prices of representative models marketed by the Community industry and
the comparable model of the co-operating exporting producer was made on the
basis of sales, excluding anti-dumping duties, at the same level of trade (prices
to dealers/importers) during the investigation period. No adjustment for
quality difference had to be made because the models used were identical in
the perception of the buyer and were directly and fully comparable. Whilst it
was deemed that these models provided a fair comparison, the low value of
exports sold by this exporting producer inevitably makes it difficult, if not
impossible, to draw clear conclusions. On the basis of the limited number of
transactions available however, significant price undercutting was identified
by the dumped imports concerned.

(46)

It should be pointed out here that misleading information was provided by the
co-operating exporting producer concerning the status of the major importer
involved in the above calculation. Initially the Commission services were
informed that the importer was not related to the Singaporean exporter but at a
later stage they were described as being "part of the Teraoka group". Although
the importer did not co-operate with the investigation and its relationship with
the exporting producer could, therefore, not be conclusively determined, the
Commission accepted the import purchase prices as being unaffected by the
possible relationship and used them as the best source of information available
in accordance with Article 18 of the basic Regulation. Recital (45) refers.

4.

Situation of the Community industry

(47)

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
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

12

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

(48)

Production of all REWS fell over the period 1994 to 1996, but then increased
in line with the Euro-effect as explained at recital (39). The capacity utilisation
rate of the Community industry increased by 13 % during the analysis period.

Community Industry

1994

1995

1996

1997

Production and Capacity

Index 1994=100

In-
vesti-
gation
period

Volume all REWS produced

Capacity (all REWS)

100

100

93

101

Capacity utilisation rate
REWS)

(all

100

92

95

98

98

104

102

98

90

105

113

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

(49)

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 (39).

1994

1995

1996

1997

Investi-
gation
period

100

91

94

100

103

Sales volume in
units

Sales of Community
industry
Index 1994 = 100

Sales turnover

(50)

The sales turnover of total REWS made by the Community industry on the
Community market fell over the period 1994 to 1997, but then increased in
line with the Euro-effect as explained at recital (39).

13

Sales turnover in
ECU

Sales of Community
industry
Index 1994 = 100

1994

1995

1996

1997

Investi-
gation
period

100

93

90

85

90

Market share and growth

(51)

The market share of the Community industry fell by 3 percentage points from
the Community
1994 to the end of the investigation period. Therefore,
industry could not benefit fully from the growth of the market.

Price development

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

Development of
Prices of REWS
(1994 = 100)
(ECU/unit)

All REWS

1994

1995

1996

1997

Investi-
gation
period

100

103

95

83

87

Sales prices for all ranges decreased between 1994 and the investigation
period by 13 %. This overall average price reduction was consistent across
all model ranges of REWS.

Profitability

(53)

The return on turnover of REWS as a whole rose from low positive levels in
1994 to over 10 % in the investigation period. At the beginning of the analysis
period, the return on turnover 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 the above-mentioned Euro effect which
gave a temporary boost to sales and, to a lesser extent, the effects of large
scale restructuring carried out by the industry as mentioned at recital (35). In
addition the existence of anti-dumping measures will also have had a positive
effect.

Other performance related factors

(54) 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
the product under
analysis would not necessarily be representative for
consideration.

14

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
from the countries concerned,
this impact cannot be considered to be
negligible.

Productivity, employment and wages

(55)

The table below shows that during the analysis period employment in the
Community industry decreased by 32 %.

Productivity per employee

1995

1996

1997

1998

Index – 1995 = 100

Number of units produced

Number of employees

Productivity per employee

100

100

100

93

94

99

95

86

111

104

75

138

In-
vesti-
gation
period

102

68

150

(56)

Productivity per employee increased by 50 % over the analysis period.

(57) 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.

Conclusions on the situation of the Community industry

(58)

The Community industry has undergone a major restructuring programme and
has improved production and distribution techniques in order that
it can
benefit from the measures in place. However, it has continued to suffer from
pricing pressures, which has squeezed margins and has resulted in a loss of
market share and reductions in employment. Profitability improved over the
analysis period but, as mentioned at recital (39), it was only at levels sufficient
to maintain the Community industry's viability, and this was mainly due to
one-off benefits resulting from the Euro effect and profit levels are 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 in which it was found in the previous investigation.

E.

LIKELIHOOD OF RECURRENCE OF INJURY

1.

Analysis of the situation of the Singaporean exporting producers

(59)

The development of imports from Singapore is shown at recital (41). The
application of increased anti-dumping duties following the anti-absorption
investigation which came into force in December 1995 will have affected the
level of imports from that date.

15

(60) Although at volumes lower than before, Singaporean exporting producers have
continued to sell on the Community market, and it was submitted by the
complaining industry that they have concentrated their sales in markets of
certain Member States with specific models, rather than selling a full range of
models. This claim was examined by the Commission and it was clear from
sales figures submitted by the co-operating exporting producer, that certain
markets were, indeed, being targeted with specific models, where the exporters
felt that they could compete, mainly on the basis of low prices, without the
large sales and distribution networks necessary for the Community industry.

(61)

(62)

(63)

The Community retail sector
is dominated more and more by large
supermarket chains which negotiate annual purchase contracts for REWS.
Therefore the REWS market is susceptible to price pressure in the form of
low-priced offers to increase the downward pressure on prices. The
low-priced offers involving imports
Commission considers, therefore, that
from Singapore could easily lead to a recurrence of injury should the anti-
dumping measures in place be allowed to lapse.

The history of anti-dumping investigations involving this product has shown
that production is mobile. The view of the Commission is that, if measures on
imports of the product concerned expired, exports from Singapore would
quickly regain their previous injurious levels and, in view of the finding of this
investigation that dumping has continued to occur, at dumped prices. This is
particularly pertinent here, where the main Singaporean producer is related to
a producer in Japan; i.e. also a country for which a likelihood of recurrence of
injurious dumping has been found.

In addition to the above point regarding production movements, figures
obtained from the co-operating exporting producer were unclear in respect of
capacity utilisation. We were informed that capacity utilisation was 63 % of
the nameplate production and over 100 % of the attainable production levels in
the investigation period. The Commission concluded, however,
the
mobility of production and the ease of setting up new facilities meant that
production and exports could be increased should measures lapse.

that

The major exporting producer submitted that production facilities had now
been established in the Community, which meant that it was unlikely that
exports from Singapore to the Community would increase if measures lapsed.
However, these production units failed to co-operate with the investigation. It
was clear from the limited amount of information supplied that a very small
range of models were being produced in the Community and the Commission
services concluded that, in order to offer a more complete range, that imports
would be attracted in from Singapore. Indeed, should measures be allowed to
lapse, it was possible that production in Europe would be moved back to
Singapore.

(64)

It should also be noted that the major exporting producer also sells at low
prices on other markets (the United States of America, Canada, Israel, the
Republic of Korea, Indonesia and Malaysia). For a total volume of sales of
665 units to these countries, sales prices (excluding duties) were around 9 %
lower than prices of the same model on the Community market. This clearly

16

suggests that the Community market would be very attractive to Singaporean
exporting producers in the absence of anti-dumping measures.

(65)

If measures lapsed, these prices would remain low and at dumped levels, and
the imports would exert pressure on the Community market due to the
increased volumes which would probably become involved due the increased
attractiveness of the market.

2.

Analysis of the situation of the Community industry

(66) During the investigation period, the Community industry was enjoying a boost
in sales volume caused by the Euro effect, but as explained at recital (39), this
will not be a permanent phenomenon. Given the potential for low-priced
dumped imports from Singapore should measures be repealed,
it can be
expected that prices and the Community industry’s market share will be
eroded further.

(67)

Sales prices have declined on average by 13,3 % 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.

3.

Conclusion on recurrence of injury

(68)

(69)

In the light of the findings at recitals (59) to (67), it is concluded that the
expiry of the measures on these imports is likely to lead to a recurrence of
injury as defined by the various indicators used in Article 3(5) of the basic
the Commission has taken into
Regulation. In reaching this conclusion,
account the fact that the Community market for REWS is susceptible to price
pressure as it is dominated by large users.

the conclusion that production
The Commission has taken into account
facilities can be transferred with relative ease between countries which
increases available capacity, and recitals (59) to (65) explain the continuing
attractiveness of the Community market to Singaporean exporting producers
as compared to some of its third country markets.

(70)

The expiry of the measures, therefore, would be likely to lead to a recurrence
of injury to the Community industry, eventually putting at risk the viability of
Community production.

F.

COMMUNITY INTEREST

1.

General considerations

(71)

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
on an appreciation of all
the Community
industry, the importers and traders and the users of the product concerned. On
the
order to assess the likely impact of a continuation of the measures,
Commission requested information from all
interested parties mentioned
above.

the various interests such as,

17

(72)

the adoption of
It should be recalled that, in the previous investigation,
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.

(73)

The Commission also considered the effects of anti-dumping duties on REWS
imported from Singapore in relation to the specific interests of the Community
industry and other interested parties including professional end-users.

2.

Interests of the Community industry

(74)

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 certain
to deteriorate. The previous review investigation involving REWS from
Singapore 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 were maintained in 1993, the reduction in employment did
in fact happen, the companies continuing presence on the Community market
being due to a consolidation process involving mergers/acquisitions.

(75) 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.

(76)

In addition, the investigation has demonstrated that the Community industry
has made every effort to meet the competition from Singapore 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.

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(77) 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 other parties

(78)

(79)

(80)

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.

The Commission also sought the views of importers in the Community but no
replies were received to our questionnaire. It is evident that the removal of
measures would enable importers to reduce sales prices and increase margins.
However, in view of the findings on dumping and injury above, this increase
in profitability would be due solely to continued dumping.

4.

Conclusion

(81)

(82)

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.

It should be recalled, however, that there is a 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.

(83) 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

(84)

It will be recalled that the current review was opened under both Article 11(2)
and Article 11(3) of the basic Regulation. The opening under Article 11(3)
was initiated to investigate an allegation by the Community industry that
circumstances had changed and that the expiry of the measures would result in
increased dumping. In this case, the Commission decided not to pursue this

19

review for

(16). The
Article 11(3)
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.

the reasons explained at

recital

(85) As it was concluded that the removal of measures would be likely to lead to
continuation or recurrence of injurious dumping under Article 11(2) of the
basic Regulation, the following anti-dumping duties should be imposed:

Teraoka Weigh System PTE Ltd.

All non-co-operators

15,4 %

31,0 %

(86)

For the reasons explained at 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 scales for use in the retail trade which incorporate a digital display
of the weight, unit price and price to be paid (whether or not including a
means of printing these data), currently classifiable within CN code ex 8423
81 50 (TARIC code 8423 81 50 10) and originating in Singapore.

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

31,0 % (Taric additional code 8704), with the exception for electronic
weighing scales produced by the company listed below,
to which the
following rate shall apply:

–

Teraoka Weigh System PTE Ltd.
(Taric additional code 8703)

15,4 %

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.

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Article 3

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

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

Done at Brussels,

For the Council
The President

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