Commission Regulation (EC) No 2479/2001 of 17 December 2001 imposing a provisional anti-dumping duty on imports of recordable compact disks originating in Taiwan
Date: 2001-12-17
Institutions: European Commission
Subjects: Taiwan, anti-dumping duty, import, originating product, record

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COMMISSION REGULATION (EC) No 2479/2001

of 17 December 2001

imposing a provisional anti-dumping duty on imports of recordable compact disks originating in
Taiwan

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1), as last
amended by Regulation (EC) No 2238/2000 (2), and in partic-
ular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

(4)

(5)

A. PROCEDURE

On 31 March 2001, the Commission announced, by
notice published in the Official Journal of the European
Communities (3),
an anti-dumping
initiation of
proceeding with regard to imports into the Community
of recordable compact disks (hereinafter ‘CD-Rs’) origin-
ating in Taiwan and commenced an investigation.

the

The proceeding was initiated as a result of a complaint
lodged in February 2001 by the Committee of European
CD-R Manufacturers (‘CECMA’) acting on behalf of
producers representing a major proportion of the total
complaint
Community production of CD-Rs. The
contained evidence of dumping of
the product
injury resulting therefrom,
concerned and of material
which was considered sufficient to justify the initiation
of a proceeding.

The Commission officially advised the complainant
Community producers, as well as the other known
Community producers, exporting producers, importers,
users and suppliers of raw materials known to be
concerned and the representatives of Taiwan of
the
initiation of the proceeding. Interested parties were given
the opportunity to make their views known in writing
and to request a hearing within the time limit set in the
notice of initiation.

as

as well

complainant

A number of exporting producers in Taiwan and their
association,
other
Community producers and importers, made their views
known in writing. All parties who so requested within
the above time limit and indicated that
there were
reasons why they should be heard were
particular
granted a hearing.

and

parties

contended

Certain
complaining
Community producers did not fulfil the requirements of
Article 5(4) of Regulation (EC) No 384/96 (hereinafter
‘the basic Regulation’). In this respect, the statutory pre-

that

the

In fact,

initiation verification by the Commission showed that
both the 25 % and 50 % thresholds of Article 5(4) were
the complaining Community producers
met.
accounted for over 26 % of total Community production
and no eligible Community producers expressed opposi-
tion to the initiation of the investigation. It should be
noted that, on the basis of the available information
regarding Community producers (including their relation
to Taiwanese exporting producers and the proportion of
their import activity of the product concerned origin-
ating in Taiwan), the Commission decided, in accord-
ance with Article 4(1) of the basic Regulation, to exclude
six producers in the framework of the definition of total
Community production, none of which were complai-
nants.

(6)

In view of the large number of exporting producers in
Taiwan, the Commission examined the possibility of
applying sampling techniques in accordance with Article
17 of the basic Regulation. The Commission sent ques-
tionnaires to, and received detailed information from, a
representative sample of exporting producers in Taiwan
(see recital 17).

According to the same Article 17 of the basic Regulation
and in view of the large number of importers, the poss-
ibility of applying sampling techniques was examined.
However, only five
forward and
importers
submitted information as specified in the notice of initia-
to
tion. The Commission sent
which only three importers replied.

them questionnaires,

came

The Commission also sent questionnaires to all other
parties known to be concerned and received replies from
the four complaining Community producers, as well as
from 10 other Community producers, which were
considered to be meaningful and complete.

(7)

The Commission sought and verified all the information
it deemed necessary for the purpose of a preliminary
determination of dumping,
injury and Community
interest, and carried out verification visits at the prem-
ises of the following companies:

(a) Exporting producers in Taiwan

— Auvistar Industry Co., Chung-Li

— Princo Corporation, Hsinchu

— Prodisc Technology Inc., Taipei

— Ritek Corporation, Hsinchu

— Unidisc Technology Co., Taipei

(b) Related importers in the Community

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 257, 11.10.2000, p. 2.
(3) OJ C 102, 31.3.2001, p. 2.

— Multimedia
Ireland

Info-Tech Ltd, Belfast, Northern

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(c) Producers in the Community

— Computer Support Italcard SRL, Milan, Italy
— CPO Magnetic Products BV, Oosterhout, Nether-

lands

— Fuji Magnetics GmbH, Kleve, Germany
— Matsushita Media Manufacturing Ireland Ltd,

Youghal, Ireland

— Mitsui Advanced Media SA, Ensisheim, France
— MPO Media SAS, Averton, France
— TDK Recording Media Europe SA, Bascharage,

Luxembourg

(8)

The investigation of dumping and injury covered the
period from 1 January 2000 to 31 December 2000
(hereinafter referred to as ‘the investigation period’ or
‘IP’). The examination of trends relevant for the assess-
ment of injury covered the period from 1 January 1997
the investigation period ('the period
to the end of
considered').

B. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

1. Product under consideration

(9)

The product under consideration is recordable compact
disks (‘CD-Rs’) currently classifiable under CN code
ex 8523 90 00.

(10) A CD-R is a polycarbonate disk, which is coated with a
layer of dye, a layer of reflective material such as gold or
silver and a protective layer. Recording on such a disk
can be done only once and therefore the disk is said to
be of the type ‘WORM’ (Write Once Read Many). The
disk is an optical storage medium for digital data or
music. Recording is realised by exposing the dye layer to
an infrared laser beam in a CD-R recorder.

CD-Rs can be distinguished according to the type of data
stored (data CD-R versus music CD-R),
the storage
layer (mainly silver) and
capacity, the reflective metal
whether or not the CD-R is printed upon.

The product is also sold in different qualities and comes
on the market in different types of packaging of which
the most frequently encountered are regular or slim
jewel cases containing one CD-R, shrink-wrapped spin-
dles of 10 to 100 CD-Rs, cake boxes of 10 to 100
CD-Rs, envelopes containing one CD-R packed in cello-
phane, carton boxes, etc.

Although the use and the quality of the various types of
CD-R sold may differ, this does not entail any significant
differences in the basic physical and technical character-
istics of the different types. They are therefore consid-
ered as one product for the purpose of this investigation.

2. Like product

(11)

The Commission found that there were no differences in
the basic physical and technical characteristics and uses
of the CD-Rs imported into the Community originating
in Taiwan and the CD-Rs produced by the complainant
and
on the
Community market. It was also found that there was no

other Community

producers,

sold

difference between the CD-Rs produced in Taiwan and
exported to the European Community and those sold on
the domestic market of Taiwan.
therefore
concluded that both the CD-Rs produced and sold by
the Community industry on the Community market and
the CD-Rs produced and sold on the domestic market of
Taiwan were, within the meaning of Article 1(4) of the
basic Regulation, alike to the CD-Rs imported into the
Community originating in Taiwan.

It was

C. SAMPLING

(a) Sampling of Taiwanese exporters

In view of the large number of exporting producers in
Taiwan, the Commission decided that it might be neces-
sary to apply sampling techniques in accordance with
Article 17 of the basic Regulation.

the initiation of

to Article 17(2) of

In order to enable the Commission to select a sample,
pursuant
the basic Regulation,
exporting producers were requested to make themselves
the
known within three weeks of
proceeding and provide basic information on their
export and domestic sales, their precise activities with
regard to the production of the product concerned and
the names and activities of all their related companies in
the production and/or selling of the product concerned.
The Taiwanese authorities and the Taiwanese association
of exporting producers were also consulted in this
regard by the Commission and raised no objection
against the use of sampling.

(b) Pre-selection of cooperating companies

14 companies in Taiwan came forward and provided the
requested information within the three-week period set
by Article 17(2) of the basic Regulation. However, only
12 companies reported exports to the Community
during the investigation period. Those companies that
exported the product concerned to the Community
during the investigation period and expressed a wish to
participate in the sample were initially considered as
cooperating companies and were taken into account in
the selection of the sample.

These companies
total
exports of the product concerned from Taiwan to the
Community.

represented up to 88 % of

(12)

(13)

(14)

(15)

Companies, which did not make themselves known
within the three-week period, were considered as non-
cooperating companies.

(c) Selection of the sample

(16) According to Article 17(1) of the basic Regulation, the
selection was based on the largest representative volume
of exports, which could reasonably be investigated
within the time available. On this basis, six Taiwanese
companies (including four related exporting producers
belonging to the same group) were selected for the
sample in consultation with the Taiwanese association of
exporting producers. The Taiwanese authorities were
informed accordingly.

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(17)

The six cooperating companies that were not finally
retained in the sample were informed that any anti-
dumping duty on their exports would be calculated in
accordance with the provisions of Article 9(6) of the
basic Regulation. Some of these companies initially indi-
cated their intention to claim an individual margin in
accordance with Article 17(3) of the basic Regulation, in
case they were not selected in the sample. However, no
substantiated claim was received within the deadline
specified in the notice of initiation.

(18) Questionnaires were sent

for completion to all six
initially sampled companies. However, one of
the
sampled companies finally decided not to submit a ques-
this company was
tionnaire response. Consequently,
informed that it was no longer considered to be cooper-
ating in the investigation and it should therefore receive
the same treatment as other non-cooperating compa-
nies. As a result, the level of non-cooperation increased
to 22 % of total exports to the Community.

D. DUMPING

(23)

3. Normal value

(19)

In accordance with Article 2(2) of the basic Regulation,
the Commission first examined whether the domestic
sales of CD-Rs to independent customers by each
exporting producer were representative, i.e. whether the
total volume of such sales was equal to or greater than
5 % of the total volume of the corresponding export
sales to the Community.

This assessment revealed that all investigated exporting
producers had representative sales of CD-Rs on their
domestic markets during the investigation period.

(20)

The Commission considered domestically sold and
exported product
storage
capacity, metal layer, printing, quality and uses, as being
directly comparable.

types, which had similar

(24)

(25)

(21) Domestic sales of a particular product type were consid-
ered as sufficiently representative when the volume of
that product type sold on the domestic market to inde-
pendent customers during the investigation period
represented 5 % or more of the total volume of the
comparable product
to the
Community.

sold for

export

type

(a) for those product types where more than 80 % by
volume of sales on the domestic market were not
below unit costs and where the weighted average
sales price was equal to or higher than the weighted
average production cost, normal value, by product
type, was calculated as the weighted average of all
domestic sales prices of the type in question;

(b) for those product types where at least 10 %, but no
more than 80 %, by volume of sales on the domestic
market were not below unit costs, normal value, by
product type, was calculated as the weighted average
of domestic sales prices which were found equal to
or above unit costs only, of the type in question;

(c) for those product types where less than 10 %, by
volume, was sold on the domestic market at a price
not below unit costs,
it was considered that the
product type concerned was not sold in the ordinary
course of trade and therefore, normal value was
constructed.

For all types sold for export to the Community by one
investigated company and for certain types sold for
export to the Community by the other four investigated
companies, domestic sales were found to have been
made in the ordinary course of trade. Normal value was
based for the corresponding product type on the actual
prices paid or payable, by independent customers in the
domestic market of Taiwan, during the investigation
period, as set out in Article 2(1) of the basic Regulation.

For product types not made in the ordinary course of
trade, as well as for the product types that were not sold
in representative quantities on the domestic market,
normal value had to be constructed. Four investigated
companies sold such product types for export to the
Community.

To construct normal value pursuant to Article 2(6) of
the basic Regulation, the selling, general and adminis-
trative (‘SG & A’) expenses incurred and weighted
average profit realised by the cooperating exporting
producers concerned on domestic sales of
the like
in the ordinary course of trade, during the
product,
investigation period, was added to their own average
cost of manufacturing during the investigation period.
Where necessary, the manufacturing costs and SG & A
expenses reported were corrected, before being used in
the ordinary course of trade test and in constructing
normal values.

(22)

The Commission subsequently examined whether the
domestic sales of each company could be considered as
being made in the ordinary course of trade pursuant to
Article 2(4) of the basic Regulation.

This was done by establishing the proportion of
domestic sales
to independent customers, of each
exported product type, sold at a loss on the domestic
market during the investigation period:

4. Export price

(26)

For all exports of the product concerned that were made
directly to independent customers in the Community by
all five investigated exporting producers, the export price
was established in accordance with Article 2(8) of the
basic Regulation, on the basis of export prices actually
paid or payable.

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Two investigated exporting producers also sold the
product concerned to related parties in the Community.
For these exports, the export price was established in
accordance with Article 2(9) of the basic Regulation, on
the basis of prices at which the imported products were
first resold to an independent buyer. For this purpose,
adjustments were made to take account of all costs,
including
between
importation and resale, and of profits normally accruing,
so that a reliable export price could be established.

incurred

duties

taxes,

and

5. Comparison

(27)

The comparison between normal value and export price
was made on an ex-factory basis.

For the purpose of ensuring a fair comparison between
the normal value and the export price, due allowance in
the form of adjustments was made for differences
affecting price comparability in accordance with Article
2(10) of
investigated
the basic Regulation. For all
exporting producers allowances for differences in trans-
port costs, ocean freight and insurance costs, handling,
loading and ancillary costs, packing costs, credit costs,
warranty and guarantee costs, and commissions have
been granted where applicable and justified.

Two exporting producers claimed a special adjustment
for differences in average purchase quantities. These
companies claimed that they charged lower prices for
bigger purchase quantities and that the average purchase
quantity for sales to the Community was considerably
higher
than the average purchase quantity in the
domestic market. However, the companies concerned
could not demonstrate, as required in Article 2(10)(k) of
the basic Regulation that customers in the domestic
market consistently paid different prices because of the
difference in purchase quantities. Therefore, the claim
was rejected.

6. Dumping margins

(a) Dumping margin for companies investigated

(28) Dumping margins were established on the basis of a
comparison of a weighted average normal value by
product type with a weighted average export price by
product type. However, dumping margins were estab-
lished on the basis of a comparison by product type of
the weighted average normal value with the prices of all
individual export transactions when a pattern of export
prices which differ significantly between time periods
was established and the full degree of dumping being
practised was not reflected in the comparison of a
weighted average normal value by product type with a
weighted average export price by product type.

(29)

For the five companies investigated a pattern of export
prices, which differed significantly among different time
periods within the investigation period, could be estab-
lished. For three companies a considerable difference
was found between the dumping margin established on

by

export

product

the basis of a comparison of a weighted average normal
value by product type with a weighted average export
price by product type, and the dumping margin estab-
lished on the basis of a comparison of a weighted
average normal value by product type with prices of all
type.
transactions
individual
According to Article 2(11) of the basic Regulation and
in order to reflect the full degree of dumping being
practised by these three companies, the dumping margin
finally established for them was based on a comparison
of the weighted average normal value by product type
with prices of all individual export transactions. For the
other two companies the dumping margin was estab-
lished by comparing the weighted average normal value
by product type with the weighted average export price
by product type.

(30)

It has been the consistent practice of the Commission to
consider related companies or companies belonging to
the same group as one single entity for the deter-
mination of a dumping margin and thus to establish one
single dumping margin. This is because calculating indi-
vidual dumping margins might encourage circumvention
of anti-dumping measures, thus rendering them ineffec-
tive, by enabling related producers to channel
their
exports to the Community through the company with
the lowest individual dumping margin. In accordance
with this practice, the four related exporting producers
belonging to the same group were regarded as one
single entity and attributed one single dumping margin.
For these exporting producers it was decided to first
calculate a dumping margin per company and then to
establish a weighted average of these dumping margins
which was attributed to the group as a whole.

(b) Dumping margin for cooperating companies not in the

sample

(31)

The dumping margin for exporting producers, which
made themselves known in accordance with Article 17
of the basic Regulation but were not examined individ-
ually, has been established on the basis of the weighted
average of the dumping margins of the companies in the
sample pursuant to Article 9(6) of the basic Regulation.

(c) Dumping margin for non-cooperating companies

(32)

(33)

For those exporting producers which neither replied to
the Commission's questionnaire nor otherwise made
themselves known, the dumping margin was established
on the basis of the facts available, in accordance with
Article 18(1) of the basic Regulation.

The volume of exports to the Community reported by
the cooperating exporting producers was compared with
the equivalent Eurostat
import statistics in order to
establish the overall

level of cooperation.

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Indeed,

It was found that the overall non-cooperation in Taiwan
was high. If the overall level of non-cooperation is high,
it is considered appropriate to set a residual dumping
margin for the non-cooperating companies at a level
higher than the highest dumping margin established for
there is reason to
a cooperating company.
believe that the high level of non-cooperation results
from the non-cooperating producers in Taiwan generally
having dumped at a higher level than any cooperating
producer. The residual dumping margin for Taiwan was
therefore established at a level higher than the highest
dumping margin established for a cooperating company.
This level corresponds to the weighted average dumping
margin of the product types with the highest dumping
margin sold in representative quantities.

The above approach with regard to non-cooperating
companies was also considered necessary in order to
prevent non-cooperating companies benefiting from
their non-cooperation.

(34)

The provisional dumping margins, expressed as a
percentage of the cif import price at the Community
border duty unpaid, are the following:

(36)

— eight other non-complainant producers who did not
co-operate in the proceeding and of which one
supported the proceeding.

that

The fact
several non-complaining Community
the
producers have cooperated in the framework of
investigation provided the Commission with the oppor-
tunity to examine their status in relation to Article 4(1)
of the basic Regulation in more depth. Some of the
cooperating producers (including some who originally
were not complainants) were found to have imported
CD-Rs from Taiwan. However, there were no reasons to
exclude
from the definition of
Community production, given the fact that a substantial
part of those purchases was made in order to satisfy
market demand while installing new or additional
capacity, and based on the relatively low percentage of
purchases from Taiwan compared to total sales and own
production in the IP.

companies

those

(37)

Therefore, the CD-Rs produced by all these companies
constitutes
the Community production within the
meaning of Article 4(1) of the basic Regulation.

Auvistar Industry Co.:

Princo Corporation:

Prodisc Technology Inc.:

Ritek Corporation:

Unidisc Technology Co.:

Cooperating
sample:

exporting

producers

not

Non-cooperating exporting producers:

18,8 %

29,9 %

18,8 %

18,8 %

18,8 %

in
the
20,1 %

39,5 %

2. Definition of the Community industry

(38)

cooperating Community producers who
The nine
supported the complaint represented a major proportion
of the total Community production of CD-Rs during the
IP, in this case 69,4 %. On this basis, they were deemed
to constitute the Community industry within the
meaning of Articles 4(1) and 5(4) of the basic Regula-
tion. They are referred to as the ‘Community industry’
hereafter.

F. INJURY

E. DEFINITION OF THE COMMUNITY INDUSTRY

(39)

(40)

1. Community production

(35) During the IP, CD-Rs were manufactured in the

Community by the following companies:

— four complainant producers who cooperated in the

proceeding,

— five non-complainant producers who cooperated in
the proceeding and supported the proceeding,

— two non-complainant producers, of which one
supported the proceeding and one declared itself
neutral, both of which only submitted a confidential
questionnaire reply,

— three non-complainant producers who supported the
proceeding and submitted questionnaire replies but
did not subsequently reply to the deficiency requests,

— four non-complainant producers who provided some
general information to the Commission but did not
cooperate in the investigation and of which two
opposed the proceeding and two declared themselves
neutral,

1. Preliminary remark

CD-Rs are relatively recent high-tech products. They
became available to the general public and their break-
through mainly occurred during 1997-98. Since then,
the growth of demand for this new storage medium has
been spectacular. This explains why a number of indica-
tors, such as consumption, production and sales all
show a high growth.

2. Community consumption

the Community industry,

Community consumption was based on the volume of
sales of own-produced CD-Rs by the Community
industry, the sales volume of the five companies that
submitted questionnaire replies but were excluded from
the definition of
the sales
volume of the four companies that provided general
information, on Eurostat-information concerning the
import volumes originating in Taiwan and in other third
countries and on an estimate of
the
remaining Community producers based on information
collected by the Commission during its investigation
relating to the acceptance of the complaint.

the sales of

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Consumption
(1 000 units)

1997

1998

1999

2000 (= IP)

CD-Rs

Index

159 876

100

459 166

287

1 172 950

734

2 017 557

1 262

3. Imports of CD-Rs into the Community

(a) Volume, price and market share of imports originating in Taiwan

(41)

The volume of imports from Taiwan increased significantly over the period considered.

Imports
(1 000 units)

Taiwan

Index

1997

1998

1999

2000 (= IP)

10 152

100

111 447

1 098

612 539

6 034

1 212 237

11 941

(42)

The average import price of CD-Rs from Taiwan significantly decreased by 73 % over the period
considered. After a 51 % decrease from 1997 to 1998, the price of Taiwanese imports decreased
further by 21 % from 1998 to 1999 and by 30 % from 1999 to 2000.

Average import
price per unit
(ECU/EUR)

Taiwan

Index

1997

1,1

100

1998

0,6

49

1999

2000 (= IP)

0,4

38

0,3

27

(43)

Taiwan increased its market share considerably over the period considered.

Market shares

Taiwan

Index

1997

6,3 %

100

1998

24,3 %

382

1999

52,2 %

822

2000 (= IP)

60,1 %

946

(b) Price undercutting

(44)

(45)

For the determination of price undercutting the Commission analysed price data referring to the IP.
The relevant sales prices of the Community industry are net prices after deduction of discounts and
rebates. Where necessary these prices were adjusted to an ex-works level, i.e. excluding freight costs
in the Community. Taiwanese import prices compared are also net of discounts and rebates and are
adjusted where necessary to CIF Community frontier.

Based on the questionnaire replies, different product
families of CD-Rs could be defined for
comparison purposes based on the following criteria: storage capacity, type of data recorded, nature
of the reflective layer, printing and packaging. The physical CD-R characteristics were found to be of
a less decisive influence on the sales price of CD-Rs, whereas the packaging proved to be a
particularly influential criterion for comparison purposes.

(46)

The Community industry's sales prices and the import prices of the Taiwanese exporting producers
were compared at the same level of trade, namely independent customers within the Community
market, duly adjusted where appropriate.

(47) During the IP, weighted average price undercutting margins, expressed as a percentage of the
Community industry's sales prices, ranged from 25,5 % to 29,5 %. The weighted average price-under-
cutting margin was 29 %.

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4. Situation of the Community industry

(a) Preliminary remark

(48)

The first wave of installation of new European facilities can be situated around 1997, which
therefore is a start-up year with high per unit cost of production and low capacity utilisation. After
having obtained a reasonable scale of production and having reduced the cost of production
considerably, the outlook for this industry was favourable in 1999. This attracted further investments
and new starters.

(b) Production, capacity and capacity utilisation

Production
(1 000 units)

Index

Capacity
(1 000 units)

Index

Capacity utilisation

1997

19 371

100

55 589

100

34,8 %

1998

85 692

442

126 588

228

67,7 %

1999

2000 (= IP)

210 442

322 679

1 086

229 344

413

91,8 %

1 666

373 879

673

86,3 %

(49) As a consequence of the spectacular expansion of Community consumption, the Community

industry's production of CD-Rs increased continuously over the period considered.

(50)

(51)

Capacity utilisation followed an increasing trend up to 1999 but fell in the IP because the actual sales
volume was below projections. This evolution led to a massive increase in stocks. In order to prevent
excessive stockbuilding, some producers even resorted to occasional stoppages in production.

The production capacity of the Community industry showed a seven-fold increase over the period
considered. This is due to the important investments in machinery and equipment, which were made
particularly during 1997 and 1999. In general 1997 can be considered as a start-up year, which is
illustrated by the low capacity utilisation rate achieved that year. A time-span of typically six months
elapsed between the purchase of the major parts of the installation and the actual start of produc-
tion. The year 1998 was mainly characterised by making capacity ready for use and by fine-tuning
the production process. Capacity utilisation could thus be increased to 68 %. The capacity utilisation
further increased during 1999 due to the mentioned mastering of the production process in
combination with favourable market conditions. The downturn occurred in the IP when sales
projections were not met.

(c) Sales volume, sales price, market share and growth

Sales
in the Community

Volume
(1 000 units)

Index

Sales price
(ECU/EUR per CD)

Index

1997

1998

1999

2000 (= IP)

17 838

73 229

176 904

223 116

100

1,7

100

411

0,9

55

992

0,9

53

1 251

0,6

35

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(52)

(53)

the
Based on the favourable evolution of Community consumption,
Community industry in the Community significantly expanded over the period considered. From
1998 to 2000, the Community industry's sales in volume tripled but the Community market more
than quadrupled over the same period. Average sales prices of the Community industry decreased by
65 % during the period considered.

the volume of sales of

The Community industry gained market share between 1997 and 1998; it was around 16 % in 1998
and 1999. Since 1999, larger volumes of Taiwanese imports entered the Community market. The
Community industry's market share dropped to 12,6 % in the IP. Overall, the market share of the
Community industry has increased from 11,6 % to 12,6 % over the period considered, while the
share of imports concerned went up from 6,3 % to 60,1 %.

Community industry

1997

Market share

Index

11,6 %

100

1998

16,8 %

144

1999

16,2 %

139

2000 (= IP)

12,6 %

108

(54)

Both the sales of the Community industry and the Community consumption increased by a factor of
13 over the period considered. Imports originating in Taiwan grew by a factor of 119 over the same
period. From 1999 to the IP, sales of
the Community industry increased by 26 % whereas
Community consumption expanded by 72 % and Taiwanese imports by 98 %.

(d) Stocks

(55)

Stocks of own produced CD-Rs increased significantly towards the end of 1999 and to an even
higher degree towards the end of 2000. The sales volume increased less than foreseen which led to
stock building on the one hand and to reductions and even occasional stoppages of production on
the other. Stocks, expressed as a percentage of production of CD-Rs, attained a considerable 20,3 %
in the IP, notwithstanding these stoppages.

Stocks

(1 000 units)

Index

1997

6 734

100

1998

8 513

126

1999

25 479

378

2000 (= IP)

65 561

974

(e) Cost of production and profitability

(56) Notwithstanding the decrease in sales prices, the Community industry became profitable in 1999.
The Community industry managed to significantly reduce its manufacturing cost, which represented
during the IP around 80 % of the full cost of production of CD-Rs, over the period 1997-99 because
of economies of scale of production and the fine-tuning of the production process. Although this
effort was continued in the IP and although important further cost reductions were achieved, the
Community industry suffered considerable financial losses. Indeed, between 1999 and the IP, the
decrease of the full cost of production by 22 % was not sufficient to compensate for the decrease of
the sales prices by 34 %. This situation led to Community industry losses on turnover of – 4,8 % on
average in the IP.

Cost of production
(ECU/EUR per CD)

Index

Profitability

1997

3,3

100

1998

1,2

36

1999

0,8

25

2000 (= IP)

0,6

19

– 89,1 %

– 25,0 %

10,7 %

– 4,8 %

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(f) Investments, return on investment, cash flow and the ability to raise capital

Investments
(1 000 ECU/EUR)

Index

Return on investment

Cash flow
(1 000 ECU/EUR)

1997

69 043

100

– 27,2 %

– 16 374

1998

29 370

43

– 14,9 %

– 8 424

1999

59 531

86

7,9 %

34 738

2000 (= IP)

23 635

34

– 6,0 %

12 371

(57)

Investments were important during 1997, which can be considered a start-up year and during 1999
when a second wave of investments took place,
inspired by the favourable market conditions
existing at the time when investment appraisals were made.

(58) Due to the dramatic change of market conditions and more specifically the decline of market sales
prices, new investment decisions during the IP were to a large extent postponed or cancelled, in spite
of the further expansion of Community consumption.

(59)

(60)

(61)

(62)

(63)

Return on investment based on the net result increased from – 27,2 % in 1997 to 7,9 % in 1999 and
became negative again in 2000 (– 6 %).

The Community industry's cash flow became positive for the first time in 1999. The cash flow
during the IP however was again not sufficient to support depreciations, value adjustments and
provisions. The continuation of investments therefore could not be guaranteed without attracting
additional funding.

The ability to raise capital is affected by the negative results for 2000 and the negative outlook
concerning the market price evolution. Even for companies with the backing of a large group, it was
impossible to attract new funding, because of insufficient projected return on investment.

(g) Employment, productivity and wages

Employment

Index

employment

Average
cost per employee
(1 000 ECU/EUR)

Index

Productivity
CD per employee

Index

1997

483

100

22,1

100

40 100

100

1998

623

129

27,7

1999

877

181

31,5

125

137 500

143

240 000

2000 (= IP)

1 037

215

30,7

139

311 200

343

599

776

Employment for the product under consideration more than doubled over the period considered.
The increase went along with the installation of new capacity. The productivity per employee also
increased continuously over the period considered.

Part of the increase of employment can be attributed to the effort of the Community industry to
achieve higher sales by introducing attractive packaging. Packaging turned out to be a more labour
intensive and less automated activity than production and printing.

(64)

The 39 % increase of the average wage cost per employee needs further clarification.

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(h) Magnitude of dumping

(65) Given the volume and the price of the dumped imports, the impact of the actual margins of

dumping, which are significant, cannot be considered to be negligible.

5. Conclusion on injury

(66) During the period considered the volume of low-priced imports from Taiwan increased significantly.
Their market share increased from 6,3 % to 60,1 % and their import prices were reduced by 73 %.
The Community market is dominated by Taiwanese imports, which over the period considered
benefited considerably more from the favourable evolution of Community demand for CD-Rs than
the Community industry in terms of volume of sales and market share.

(67)

(68)

(69)

(70)

(71)

The increase of import volumes and the decline of the sales price were particularly pronounced
between 1999 and the IP. Import volumes during that period doubled and import prices decreased
by 30 %, undercutting the Community industry's sales prices by 29 % on average during the IP. As a
consequence Taiwanese importers continued to gain market share.

Some economic indicators pertaining to the situation of the Community industry, such as produc-
tion of CD-Rs, production capacity installed, sales volume, employment and productivity, showed
positive developments over the period considered. The rate of capacity utilisation increased until
1999, but decreased during the IP to 86 %. The average sales prices of the Community industry
dropped considerably over the period considered.

The Community industry originally built up a certain market share, which remained rather modest,
but subsequently lost part of that market share to the Taiwanese importers since 1998. Difficulties
encountered by the Community industry to obtain projected sales in an expanding market led to
considerable stock building during the IP. During the IP, new investment decisions were to a large
extent postponed or cancelled.

The reduction of cost of production allowed the Community industry to achieve profitability in
1999, but further cost reductions were not sufficient to compensate for the significant decrease of
the sales prices. Financial

losses were incurred during the IP.

Taking into account all factors mentioned above, in particular the fact that the Community industry
was prevented from participating in the market growth, that the investment programmes for CD-Rs
were significantly reduced due to the declining trend of sales prices, that the Community industry's
sales prices were undercut by Taiwanese imports, the financial losses during the IP and the difficulties
encountered in raising additional funding, it is considered that the Community industry has suffered
material

injury.

G. CAUSATION OF INJURY

1. Introduction

(72)

In accordance with Article 3(6) and (7) of the basic Regulation, the Commission examined whether
the dumped imports of CD-Rs originating in Taiwan have caused injury to the Community industry
to a degree that enables it to be classified as material. Known factors other than the dumped imports,
which could at the same time be injuring the Community industry, were also examined to ensure
that possible injury caused by these other factors was not attributed to the dumped imports.

2. Effect of the dumped imports

(73)

Community consumption of CD-Rs increased dramatically over the period considered from 160
million CD-Rs to 2 018 million CD-Rs. Production by the Community industry increased at a similar
pace, whereas dumped imports originating in Taiwan increased significantly more over the same
period, reaching 1 212 million units in the IP, which corresponds to an increase of market share
from 6,3 % to 60,1 % over the period considered. Over the same period considered, the Community
industry increased its market share from 11,6 % to 12,6 %, corresponding with sales of 254 million
units in the IP.

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(74)

(75)

(76)

The 73 % decrease of Taiwanese import prices over the period considered was considerable and
Taiwanese prices have been constantly below the Community industry's sales prices (which decreased
by 65 % during the period considered), the full cost of production of the Community industry and
even below its manufacturing cost of CD-Rs. The weighted average price-undercutting margin found
was 29 % during the IP.

The price reductions over the period considered can partly be attributed to mastering of the
production process and economies of scale of production of this recent high-tech product. However,
these factors do not explain the extraordinary decrease of Taiwanese import prices.

The Commission therefore concludes that a significant downward price pressure was exerted by the
imports from Taiwan into the Community market and that these low-priced dumped imports had a
significant negative impact on the situation of the Community industry.

3. Impact of other factors

(a) Development of consumption

(77) Over the period considered Community consumption increased by a factor of 13 an evolution that
under normal circumstances would have allowed the Community industry to grow proportionately
and to achieve a profitable scale of operations. The development of consumption thus has not
contributed to the injury suffered by the Community industry.

(b) Imports of CD-Rs from other third countries

(78)

In 1999 Taiwanese imports became more important than all other imports and during the IP
represented 74 % of all

imports into the Community.

Imports
(1 000 units)

Other countries

Index

of which:

Japan

Index

Singapore

Index

1997

1998

1999

2000 (= IP)

126 019

100

52 811

100

22 782

100

228 518

181

80 089

152

53 267

234

297 733

236

128 640

244

71 220

313

429 347

341

192 183

364

55 420

243

(79)

The prices of all imports into the Community decreased significantly during the period considered.

Average import price
per unit
(ECU/EUR)

Other countries

Index

of which:

Japan

Index

Singapore

Index

1997

1,33

100

1,94

100

0,81

100

1998

0,65

49

1,20

62

0,39

48

1999

0,63

47

0,89

46

0,35

43

2000 (= IP)

0,37

28

0,42

22

0,28

35

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(80)

The market share of imports from other countries declined by 73 % or by 57,5 percentage points.
The increase of Taiwanese imports more than absorbed the decline of other imports from 1998 on.
Apart from Japan and Singapore, which after Taiwan were the next largest exporters to the
Community of
the product concerned, more than 30 other countries together make up the
remaining 9 % of market share during the IP.

Market shares

Other countries

Index

of which:

Japan

Index

Singapore

Index

1997

78,8 %

100

33,0 %

100

14,2 %

100

1998

49,8 %

63

17,4 %

53

11,6 %

81

1999

25,4 %

32

11,0 %

33

6,1 %

43

2000 (= IP)

21,3 %

27

9,5 %

29

2,7 %

19

(81) Although during the IP imports from Japan represented only 16 % of Taiwanese imports, they
traditionally have been important given the fact that two Japanese companies (Sony and Tai Yuden)
invented the production process of CD-Rs (together with Philips) and that some of the largest
Community producers have a full or partial Japanese shareholdership. Supplies from Japan supple-
mented the range of products intended to satisfy market demand, while production capacity was
built. As a consequence, the market share of these imports decreased from 33 % to 9,5 % over the
period considered, the latter share representing mainly direct sales into the Community market. Over
the period considered, average Japanese import prices have been consistently higher than those of
other imports.

(82)

(83)

It was claimed that imports from Singapore, entering the Community market at low prices, were in
fact responsible for the injury suffered by the Community industry. On the basis of Eurostat data, it
can indeed be derived that imports from Singapore enter the Community on average at prices lower
than those of the Taiwanese exporting producers. However, imports from Singapore decreased by
22,2 % from 1999 to the IP and in the IP represented 3,4 % of total imports and a share of 2,7 % of
the Community market, descending from 14,2 % at the beginning of the period considered. On the
basis of this evolution and the speed of market penetration by the Taiwanese imports over the period
considered, the Commission found that any influence of imports originating in Singapore must be
limited and that the possibility that those imports have led Taiwanese price-setting seems to be
minor.

It was also claimed that the People's Republic of China and Indonesia were responsible for the injury
suffered by the Community industry. China represents 0,8 % of total imports of CD-Rs into the
Community, which corresponds to a 0,67 % market share. Indonesia came into the market during
2000 and obtained a 0,18 % market share at prices, which, according to Eurostat data, were
considerably lower than those of the Taiwanese imports. With regard to both China and Indonesia,
their market share during the IP would be below the de minimis margin of 1 % of the Community
market in accordance with the provisions of Article 5(7) of the basic Regulation.

(84)

It is concluded that any effects of imports from third countries other than Taiwan cannot have been
as such that they would break the causal link between dumping of Taiwanese imports and the injury
suffered by the Community industry.

(c) Export activity of the Community industry

Exports
(1 000 units)

Index

Export price
(ECU/EUR per unit)

Index

1997

1 531

100

1,73

100

1998

7 937

518

0,92

53

1999

19 578

1 279

0,86

50

2000 (= IP)

32 245

2 106

0,59

34

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(85)

The export activity of the Community industry in the IP represented 11,3 % of its total sales of own
produced CD-Rs, compared to 7,6 % in 1997 and 9,3 % in both 1998 and 1999. Given the fact that
exports of CD-Rs to third countries therefore are a relatively minor activity, any injury in terms of
the evolution of production or sales caused by the evolution of exports over the period considered is
considered to be limited. Export prices obtained are comparable to the sales prices to unrelated
customers on the Community market.

(d) Purchases from Taiwan and other third countries

(86)

(87)

(88)

(89)

The investigation showed that the Community industry during the period considered has purchased
CD-Rs from other sources in order to respond to market demand. Total purchases represented
35,7 % of total sales in 1997, 44,8 % in 1998, 32,8 % in 1999 and 22,1 % in 2000. Imports from
Taiwan represented respectively 0,6 % in 1997, 5,8 % in 1998, 17,9 % in 1999 and 7,7 % in 2000.

The decrease of purchases from 1999 to the IP is a logical consequence of the additional capacity
installed, the stockbuilding of own-produced CD-Rs and the downward adjustment of sales predic-
tions by the Community industry.

It was also found that the volume of purchased CD-Rs decreased compared to the Community
industry's own production. Purchased volumes of CD-Rs represented 55,5 % in 1997, 78,7 % in
1998, 43,4 % in 1999 and 24 % in 2000. Taiwanese CD-Rs accounted for respectively 1 % in 1997,
10,1 % in 1998, 23,7 % in 1999 and 8,4 % in 2000.

The purchases made by the Community industry were to a large extent of a temporary nature. In
reaction to the increasing market opportunities and demand, a number of recording media producers
(such as manufacturers of diskettes) have invested in the new technology of recordable CDs. Prior to
the production facilities being operational, marketing efforts were already put into place and demand
had to be partly fulfilled with purchased products. Japanese imports have been relatively important
because Japan was the first country to install the technology and because, as already mentioned, an
important part of the European industry belongs to Japanese groups.

(90)

Purchases by the Community industry from the country concerned during the IP represented 2,2 %
of total
imports into the
Community and occurred mainly at the beginning of the IP. These purchases therefore cannot have
had a decisive influence on the injurious situation suffered by the Community industry.

imports from Taiwan and total purchases represented 4,7 % of all

(e) High-speed technology

(91)

(92)

(93)

It was claimed that the market share of European producers was negatively affected because of a
slow adaptation to higher speed technology, meaning the technology that determines speed at which
users can burn the CD-Rs.

The investigation did not reveal that speed is a determining factor for price setting. Higher speed in
burning CD-Rs must be supported by the hardware installed, meaning that this feature aims at
existing users who are prepared to install new hardware or new users, who buy a CD-writer for the
first time. Although figures estimating the share of those users compared to all users of CD-Rs are
not available,

it is clear that higher speed is not a consideration for all users.

It was claimed that one non-cooperating Taiwanese exporting producer introduced 16x speed in
October 2000, whereas the European producers lagged by introducing it in February 2001. The
claim does not make clear whether introduction means start of production or start of sales. On the
one hand, given that the Taiwanese exporting producer did not cooperate, the claim could not be
checked at its level, but on the other hand an inquiry into the three largest producers belonging to
the Community industry showed that one introduced 16x speed for sale on 1 November 2000, one
on 15 December 2000 and one went directly on from 12x to 24x speed in 2001.

(94)

The alleged impact of the adaptation of high-speed technology on the injurious situation of the
Community industry therefore does not seem to exist.

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4. Conclusion on causation

(95) Other factors than the dumped imports from the Taiwan, such as the development of Community
consumption, the imports from other third countries, the export activity of the Community industry,
the purchases of CD-Rs from third countries by the Community industry and the adaptation of high
speed technology, were not found to have materially contributed to the injurious situation of the
Community industry.

(96)

the decrease of

The investigation has shown that during the period considered, the volume of low-priced dumped
its import prices was
imports from Taiwan considerably increased and that
pronounced, to an extent that could not be justified by the reduction in the cost of production based
on the mastering of the production process and on economies of scale. During the IP, Taiwanese
imports showed a relative importance of 74 % of all imports into the Community, a market share of
60 % of Community consumption and a price level which seems not to have been led by other
imports, significantly undercutting the Community
imports and is amongst
industry's sales prices. Given the strong position of the Taiwanese exporting producers on the
Community market, these developments had material negative consequences for the Community
industry. Accordingly,
it is provisionally concluded that these imports, taken in isolation, have
caused material

injury to the Community industry.

the lowest of all

H. COMMUNITY INTEREST

1. Introduction

(97)

The Commission examined whether, despite the conclusions on dumping, injury and causation,
compelling reasons existed which would lead to the conclusion that it is not in the Community
interest to adopt measures in this particular case. For this purpose, and pursuant to Article 21(1) of
the basic Regulation, the Commission considered the likely impact of measures for all parties
concerned in the investigation.

2. Interest of the Community industry

(98)

The situation of the Community industry has deteriorated due to low-priced imports of CD-Rs,
causing a situation in which sales are made at a loss and in which it did not participate in the market
growth as could have been expected on the basis of demand of CD-Rs in the Community market.
The lower than expected sales led to high stockbuilding. Investments in additional production
capacity are to a large extent, and at least temporarily, halted and some existing capacity has been
idled. During the year 2000, five European producers completely abandoned CD-R production.
However, the investment programs of the Community industry and the strategic technological
importance of the sector of media recording show that the Community industry intends to remain
active in the sector of CD-R production. Their continued presence in the market of recording media
is moreover considered to be necessary in order to be able to follow the evolution of recordable
DVD. Recording media producers as such still demonstrate competitiveness and are viable, especially
the ones that have backing of larger, mainly Japanese, groups.

(99)

The Commission services consider that, in the absence of the imposition of antidumping measures,
the situation of the Community industry will deteriorate, further reducing the number of Community
producers of CD-Rs and thus reducing employment. Stoppage of CD-R production would have
technological implications in the sense that those producers would no longer be present on the
market of recording media, thereby foregoing a strategic role in future technological developments
such as DVD standards and subsequent recording media products.

(100) Since the objective of the adoption of anti-dumping measures is to re-establish fair competition in
the Community market, this would be in the interest of the Community industry, since it has, in
spite of the injury suffered, proved to be viable in principle.

3. Interest of importers

(101) The Commission services received three questionnaire replies from importers, representing 5,3 % of

total

imports from Taiwan during the IP. The companies involved were:

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— Imation Europe BV, Schiphol, Netherlands,
— Dysan Products Europe Ltd, Camberley, United Kingdom,
— Memorex Products Europe Ltd, Hammondsworth, United Kingdom.

These interested parties stated that they were against the imposition of anti-dumping duties. During
the IP, their purchases of CD-Rs originated almost exclusively in Taiwan.

(102) The three cooperating importers taken together suffered losses in 2000, after having realised
profitable operations in 1999. It was concluded that even for those importers, prices during the IP
have decreased to such an extent that a normal trading contribution margin was no longer sufficient
to cover overhead costs. This seems to indicate that an upward adjusted price level would be in the
interest of importers.

4. Interest of users and consumers

(103) The Commission did not receive any reactions from users, i.e. companies that use CD-Rs for small

runs of duplications of music CDs or software.

(104) As to consumers, the European Consumer organisation (BEUC) was contacted but did not cooperate

in the proceeding.

(105) This seems to indicate that neither users nor consumers would be unduly affected by the imposition

of measures.

5. Other arguments

(106) A major claim against the imposition of measures is that the capacity of European producers is not
sufficient to fulfil Community demand.
Indeed, the investigation has shown that the capacity
installed in Europe cannot fulfil the existing demand on the Community market, even when taking
into account the existing spare capacity and the postponed investment plans. However, this can not
justify the injurious behaviour of Taiwanese exporting producers. Furthermore, the imposition of
anti-dumping duties is not intended to close this market to Taiwanese exporting producers but to
restore fair trade conditions and effective competition on the Community market. In that sense,
Taiwanese imports would continue to be present on the Community market, but at prices which are
no longer injuriously dumped. Moreover, imports from third countries not subject to measures are
likely to gain importance once injurious dumping from Taiwan no longer takes place. On this basis,
the Commission concludes that a risk of supply shortage does not exist.

6. Conclusion on Community interest

(107) On the basis of the above, it is concluded that there are no compelling reasons on the grounds of

Community interest not to impose anti-dumping measures.

I. PROVISIONAL ANTI-DUMPING MEASURES

1. Injury elimination level

(108)

In view of the conclusions reached with regard to dumping,
injury, causation and Community
interest, provisional measures should be taken in order to prevent further injury being caused to the
Community industry by the dumped imports.

(109) For the purpose of establishing the level of the provisional measures, account has been taken of both
the dumping margins found and the amount of injury sustained by the Community industry.

(110) The provisional measures should be imposed at a level sufficient to eliminate the injury caused by
these imports without exceeding the dumping margins found. When calculating the amount of duty
necessary to remove the effects of the injurious dumping, it was considered that any measures
should allow the Community industry to cover its costs and obtain overall a profit before tax that
could be reasonably achieved under normal conditions of competition, i.e. in the absence of dumped
imports, on the sales of the like product in the Community. The pre-tax profit margin used for this
calculation was 8 % of turnover.

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(111) The necessary price increase was then determined on the basis of a comparison of the weighted
average import price, as established for the undercutting calculations, with the non-injurious price of
the different models sold by the Community industry on the Community market. The non-injurious
price per model has been obtained by adding the abovementioned profit margin of 8 % to the cost of
production per model. Any difference resulting from this comparison was then expressed as a
percentage of the total cif import value. These differences were in all cases above the dumping
margins found.

2. Provisional measures

(112)

In the light of the foregoing and in accordance with Article 7(2) of the basic Regulation,
it is
considered that provisional anti-dumping duties should be imposed at the level of the dumping
margins found, since as mentioned above the injury elimination margins found were in all cases
above the dumping margins.

(113) The individual company anti-dumping duty rates specified in this Regulation were established on the
basis of the findings of the present investigation. Therefore, they reflect the situation found during
that investigation with respect to these companies. These duty rates (as opposed to the countrywide
duty applicable to ‘all other companies’) are thus exclusively applicable to imports of products
originating in the country concerned and produced by the companies and thus by the specific legal
entities mentioned. Imported products produced by any other company not specifically mentioned
in the operative part of this Regulation with its name and address, including entities related to those
specifically mentioned, cannot benefit from these rates and shall be subject to the duty rate
applicable to ‘all other companies’.

(114) Any claim requesting the application of these individual company anti-dumping duty rates (e.g.
following a change in the name of the entity or following the setting up of new production or sales
entities) should be addressed to the Commission (1) forthwith with all relevant information,
in
particular any modification in the company's activities linked to production, domestic and export
sales associated with e.g. that name change or that change in the production and sales entities. The
Commission, if appropriate, will, after consultation of the Advisory Committee, amend the Regula-
tion accordingly by updating the list of companies benefiting from individual duty rates.

J. FINAL PROVISION

(115)

In the interest of sound administration, a period should be fixed within which the interested parties
which made themselves known within the time limit specified in the notice of initiation may make
their views known in writing and request a hearing. Furthermore, it should be stated that the findings
concerning the imposition of duties made for the purposes of this Regulation are provisional and
may have to be reconsidered for the purpose of any definitive duty,

HAS ADOPTED THIS REGULATION:

Article 1

1.
A provisional anti-dumping duty is hereby imposed on imports of recordable compact disks (CD-Rs),
currently classifiable within CN code ex 8523 90 00 (TARIC code 8523 90 00 10), originating in Taiwan.

The rate of the provisional duty applicable to the net free-at-Community-frontier price, before duty,

2.
for products produced by the following companies shall be as follows:

(1) European Commission

Directorate-General Trade
Directorate C
TERM 0/13
Rue de la Loi/Wetstraat 200
B-1049 Brussels.

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Country

Taiwan

Company

Acer Media Technology Inc.,
29 Jianguo E. Road, Gueishan,
Taoyuan 333, Taiwan, ROC

Auvistar Industry Co., Ltd
21, Tung-Yuan Road, Chung-Li Industrial Park,
Taiwan ROC

Digital Storage Technology Co., Ltd,
No 42, Kung 4 Rd, Linkou
2nd Industrial Park, Taipei Hsien,
Taiwan ROC

Gigastorage Corporation,
2, Kuang Fu South Rd, Hsinchu Industrial Park,
Hsinchu, Taiwan ROC

Lead Data Inc.,
No 23, Kon Yeh 5th Rd
Hsinchu Industrial Park Fu Kou Hsiangh, Hsinchu Hsien,
Taiwan, ROC

Megamedia Corporation, No 13,
Kung Chien Rd, Chi-Tu District,
Keelung, Taiwan, ROC

Postech Corporation
No 42, Kuang Fu South Road,
Hsinchu Industrial Park, Hsinchu Hsien,
Taiwan, ROC

Princo Corporation,
No 6, Creation 4th Rd,
Science-based Industrial Park, Hsinchu
Taiwan ROC

Prodisc Technology Inc.,
No 13, Wu Chuan 7th Rd,
Wu-Ku Industrial District, Wu-Ku County,
Taipei, Taiwan ROC

Ritek Corporation,
No 42, Kuanfu N. Road,
Hsinchu Industrial Park,
Taiwan 30316 ROC

Unidisc Technology Co., Ltd
4F, No 543, Chung-Cheng Rd,
Hsin-Tien, Taipei, ROC

All other companies

Rate of duty
(%)

TARIC
additional code

20,1

A298

18,8

A299

20,1

A300

20,1

A301

20,1

A302

20,1

A303

20,1

A304

29,9

A305

18,8

A306

18,8

A307

18,8

A308

39,5

A999

3.

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

The release for free circulation in the Community of the product referred to in paragraph 1 shall be

4.
subject to the provision of a security, equivalent to the amount of the provisional duty.

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96, interested parties may request disclosure of
the essential facts and considerations on the basis of which this Regulation was adopted, make their views
known in writing and apply to be heard orally by the Commission within one month of the date of entry
into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the parties concerned may comment on the
application of this Regulation within one month of the date of its entry into force.

18.12.2001

EN

Official Journal of the European Communities

L 334/25

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

Article 1 of this Regulation shall apply for a period of six months.

Article 3

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

Done at Brussels, 17 December 2001.

For the Commission

Pascal LAMY

Member of the Commission