Notice of initiation of an anti-subsidy proceeding concerning imports of certain magnetic disks (3,5″ microdisks) originating in India
Date: 2001-12-13
Institutions: European Commission
Subjects: India, anti-subsidy proceeding, import, magnetic medium, originating product

C 354/6

EN

Official Journal of the European Communities

13.12.2001

Notice of initiation of an anti-subsidy proceeding concerning imports of certain magnetic disks
(3,5’’ microdisks) originating in India

(2001/C 354/04)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 (1) ((cid:145)the Basic Regu-
lation(cid:146)), alleging that imports of certain magnetic disks (3,5’’
microdisks), originating in India ((cid:145)country concerned(cid:146)), are
being subsidised and are thereby causing material
injury to
the Community industry.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a
negative impact on the quantities sold and the level of prices
charged by the Community industry, resulting in substantial
adverse effects on the overall performance and the financial
situation of the Community industry.

1. Complaint

5. Procedure

The complaint was lodged on 29 October 2001 by the
Committee of European Diskette Manufacturers (Diskma) ((cid:145)the
complainant(cid:146)) on behalf of producers representing a major
proportion of
the total Community production of certain
magnetic disks (3,5’’ microdisks).

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 10 of the Basic
Regulation.

2. Product

The product allegedly being subsidised is 3,5’’ microdisks used
to record and store encoded digital computer information (with
the exception of 3,5’’ microdisks based on optically continuous
servo tracking technology or magnetic sector servo tracking
technology with a storage capacity of 120 MB or more) orig-
inating in India ((cid:145)the product concerned(cid:146)), currently classifiable
within CN code ex 8523 20 90. This CN code is only given for
information.

3. Allegation of subsidisation

5.1. Procedure for the determination of subsidisation and

injury

The investigation will determine whether the product described
in point 2 originating in India is being subsidised and whether
this subsidisation has caused injury.

(a) Sampling

In view of the apparent large number of parties involved in
this proceeding,
the Commission may decide to apply
sampling in accordance with Article 27 of the Basic Regu-
lation.

It is alleged that the producers of the product concerned from
India have benefited from a number of subsidies granted by the
Government of India. These subsidies are a duty entitlement
passbook scheme, subsidies for industries located in export
processing
parks/
software technology parks or for export oriented units, an
income tax exemption, the export promotion capital goods
scheme and the advance licence scheme.

zones/electronic

technology

hardware

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the Government of India
to exporters/
and confer a benefit
producers of certain magnetic disks (3,5’’ microdisks). They
are alleged to be contingent upon export performance and
therefore specific and countervailable, or
to be otherwise
specific and countervailable.

to the recipients,

i.e.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from India have increased overall
in
absolute terms and in terms of market share.

(1) OJ L 288, 21.10.1997, p. 1.

(i) Sampling for exporters/producers in India

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters/producers, or representatives acting on their
behalf, are hereby requested to make themselves known
by contacting the Commission and providing the
following information on their company or companies
within the time limit set in point 6(b)(i) of this notice:

(cid:151) name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

(cid:151) the turnover in local currency and the volume in
units of the product concerned sold for export to
the Community during the period 1 October 2000
to 30 September 2001,

(cid:151) the turnover in local currency and the sales volume
in units for the product concerned on the domestic
market during the period 1 October 2000 to 30
September 2001,

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Official Journal of the European Communities

C 354/7

(cid:151) whether the company intends to claim an individual
subsidy rate (individual subsidy rates can only be
claimed by producers),

(cid:151) the precise activities of the company with regard to

the production of the product concerned,

(cid:151) the names and the precise activities of all related
involved in the production and/or
the product

companies (1)
selling (export and/or domestic) of
concerned,

(cid:151) any other relevant information that would assist the
Commission in the
sample,
including whether the company is located in an
export processing zone/electronic hardware tech-
nology park/software technology park, or
is an
export oriented unit,

selection of

the

(cid:151) an indication of whether the company or companies
agree to their inclusion in the sample, which implies
replying to a questionnaire
and accepting an
on-the-spot investigation of their response.

In order to obtain the information it deems necessary
for the selection of the sample of exporters/producers,
the Commission will,
the auth-
in addition, contact
the exporting country, and any known
orities of
associations of exporters/producers.

(ii) Final selection of the sample

interested parties wishing to submit any relevant
All
information regarding the selection of
the sample
must do so within the time limit set in point 6(b)(i)
of this notice.

The Commission intends to make the final selection of
the sample after having consulted the parties concerned
that have expressed their willingness to be included in
the sample.

Companies included in the sample must reply to a
questionnaire within the time limit set in point 6(b)(ii)
of this notice and must cooperate within the framework
of the investigation.

sufficient

cooperation is not

If
the
Commission will base its findings, in accordance with
Articles 27(4) and 28 of the Basic Regulation, on the
facts available.

forthcoming,

(1) For guidance on the meaning of related companies, please refer to
Article 143(1) of Commission Regulation (EEC) No 2454/93
concerning the implementation of the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

(b) Questionnaires

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires
to the Community industry and to any association of
producers in the Community, to the sampled exporters/
producers
exporters/
producers,
to any association of
importers named in the complaint, and to the authorities
of the exporting country concerned.

to any association of
importers,

in India
to the

Exporters/producers in India claiming an individual subsidy
rate, with a view to the application of Articles 27(3) and
15(3) of the Basic Regulation, must submit a completed
questionnaire within the time limit set in point 6(a)(ii) of
this notice. They therefore have to request a questionnaire
within the time limit set in point 6(a)(i) of this notice.
However, such parties should be aware that if sampling is
applied to exporters/producers,
the Commission may
nonetheless decide not to calculate an individual subsidy
rate for them, if the number of exporters/producers is so
examination would be unduly
large
burdensome and would prevent the timely completion of
the investigation.

individual

that

(c) Collection of information and holding of hearings

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence has to reach the Commission within
the time limit set in point 6(a)(ii) of this notice.

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii) of
this notice.

5.2. Procedure for assessment of Community interest

For

this

their

industry,

the Community

In accordance with Article 31 of the Basic Regulation and in
the event that the allegations of subsidisation and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-subsidy measures would not be
interest.
against
reason the
Community
representative
importers,
associations, representative users and representative consumer
organisations, provided that
there is an
and the product
objective
concerned, may, within the general time limits set in point
6(a)(ii) of this notice, make themselves known and provide
the Commission with information. The parties which have
acted in conformity with the precedent sentence may request
a hearing setting the particular reasons why they should be
heard within the time limit set in point 6(a)(iii) of this notice. It
should be noted that any information submitted pursuant to
Article 31 will only be taken into account if supported by
factual evidence at the time of submission.

link between their

they prove that

activity

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13.12.2001

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All interested parties should request a questionnaire as
soon as possible, but not later than 15 days after the
publication of this notice in the Official Journal of the
European Communities.

(ii) For parties to make themselves known,

to submit

questionnaire replies and any other information

(ii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date
of the notification of their inclusion in the sample.

7. Written submissions, questionnaire replies and corre-

spondence

All submissions and requests made by interested parties must
be made in writing (not in electronic format, unless otherwise
specified), and must indicate the name, address, e-mail address,
telephone and fax, and/or telex numbers of the interested party.

Commission address for correspondence:

by

contacting

themselves

All interested parties, if their representations are to be
taken into account during the investigation, must
known
make
the
their views and submit ques-
Commission, present
tionnaire replies or any other information within 40
days of the date of publication of this notice in the
the European Communities, unless
Official
otherwise specified. Attention is drawn to the fact
that the exercise of most procedural rights set out in
the Basic Regulation depends on the party’s making
itself known within the aforementioned period.

Journal of

Companies selected in a sample must submit ques-
tionnaire replies within the time limits specified in
point 6(b)(ii) of this notice.

(iii) Hearings

All interested parties may also apply to be heard by
the Commission within the same 40-day time limit.

(b) Specific time limit in respect of sampling

(i) All information relevant for the selection of the sample
should reach the Commission within 15 days of the
date of publication of this notice in the Official Journal
of the European Communities, given that the Commission
intends
concerned that have
expressed their willingness to be included therein on
the final selection of the sample within a period of
21 days of
this notice in the
Official Journal of the European Communities.

to consult parties

the publication of

European Commission
Directorate-General for Trade
Directorates B and C
TERV (cid:151) 0/13
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05
Telex: COMEU B 21877.

8. Non-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, affirmative or negative, may be made in accordance
with Article 28 of the Basic Regulation, on the basis of the
facts available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made of the facts available.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(9)
of the Basic Regulation within 13 months of the date of the
publication of this notice in the Official Journal of the European
Communities. According to Article 12(1) of the Basic Regu-
lation, provisional measures may be imposed no later than
nine months
this notice in the
Official Journal of the European Communities.

from the publication of