Proposal for a Council Regulation repealing Council Regulation (EC) No 904/98 of 27 April 1998 with respect to the imposition of a definitive anti-dumping duty on imports into the Community of personal fax machines originating in the People's Republic of China, Japan, the Republic of Korea, Malaysia, Singapore, Taiwan and Thailand
Date: 2002-02-26
Institutions: European Commission
Subjects: China, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, anti-dumping duty, facsimile, import, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.02.2002
COM(2002) 104 final

Proposal for a

COUNCIL REGULATION

repealing Council Regulation (EC) No 904/98 of 27 April 1998 with respect to the
imposition of a definitive anti-dumping duty on imports into the Community of personal
fax machines originating in the People’s Republic of China, Japan, the Republic of
Korea, Malaysia, Singapore, Taiwan and Thailand

(presented by the Commission)

EXPLANATORY MEMORANDUM

By  Regulation  (EC)  No  904/98  of  27  April  19981  the  Council  imposed  a  definitive  anti-
dumping duty on imports of personal fax machines, falling within CN code ex 8517 21 00 and
originating  in  the  People’s  Republic  of  China,  Japan,  the  Republic  of  Korea,  Malaysia,
Singapore, Taiwan and Thailand.

On 1 July 2000, the Commission initiated on its own initiative, an interim review pursuant to
Article  11(3)  of  Council  Regulation  (EC)  No  384/96  of  22  December  1995  (the  “Basic
Regulation”) of the anti-dumping measures in force

By  letter  of  24  April  2001,  Philips  Internet  Fax  Appliances  formally  informed  the
Commission  about  its  decision  to  transfer  a  major  part  of  its  manufacturing  capacities  of
personal  fax  machines  outside  the  Community  in  the  course  of  2001.  The  remaining
production of personal fax machines, which represented less than 35% of the total production
of Philips in 2000, would be gradually phased out during the next two years.

In  view  of  the  drastically  reduced  Community  production  it  is  concluded  that  the  present
proceeding  should  be  terminated  since  the  maintenance  of  the  anti-dumping  measures
concerned  will  not  provide  any  benefit  in  terms  of  protecting  production  against  possible
unfair trade practices. Therefore, any negative effect of the anti-dumping measures concerned
will be clearly disproportionate.

It  is  therefore  proposed  that  the  Council  adopt  the  attached  proposal  for  a  Regulation
repealing the existing measures and terminating the proceeding, which should be published in
the Official Journal.

1 OJ No L 128, 30.4.1998, p. 1.

2

                                                
Proposal for a

COUNCIL REGULATION

repealing Council Regulation (EC) No 904/98 of 27 April 1998 with respect to the
imposition of a definitive anti-dumping duty on imports into the Community of personal
fax machines originating in the People’s Republic of China, Japan, the Republic of
Korea, Malaysia, Singapore, Taiwan and Thailand

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  Community2,  and  in
particular Article 11 (3) and (6) thereof,

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

whereas:

1.

(1)

2.

(2)

PROCEDURE

Measures in force

By  Regulation  (EC)  No  904/98  of  27  April  19983  the  Council  imposed  a  definitive
anti-dumping  duty  on  imports  of  personal  fax  machines,  falling  within  CN  code  ex
8517 21 00 and originating in the People’s Republic of China, Japan, the Republic of
Korea, Malaysia, Singapore, Taiwan and Thailand.

Product concerned

The  product  concerned,  as  defined  in  Regulation  (EC)  No  904/98,  is  fax  machines
with a weight of 5 kilograms or less and with dimensions (width x depth x height) of
the main body measuring 470 mm x 450 mm x 170 mm or less, excepting those fax
machines using ink-jet or laser or LED printing technology that due to their difference
in  physical  and  technical  characteristics  are  designed  for  professional  rather  than
personal use, and are, to a significant extent, sold through different sales channels.

2 OJ L 56, 6.3.1996, p. 1. as last amended by Regulation (EC) No 2238/2000, OJ L 257, 11.10.2000, p. 2.
3 OJ No L 128, 30.4.1998, p. 1.

3

                                                
3.

(3)

(4)

(5)

(6)

(7)

Review investigation

On 1  July 2000, the Commission initiated  on  its  own  initiative(4),  an  interim  review
pursuant to Article 11(3) of Council Regulation (EC) No 384/96 of 22 December 1995
(the “Basic Regulation”) of the anti-dumping measures in force with regard to imports
of  personal  fax  machines  originating  in  the  People’s  Republic  of  China,  Japan,  the
Republic of Korea, Malaysia, Singapore, Taiwan and Thailand.

The  Commission,  in  its  Notice  of  Initiation,  had  invited  interested  parties  to  present
their comments on the product definition given that there were indications of changed
circumstances,  in  particular  certain  technical  and  technological  developments.  After
receipt  of the comments, the Commission published a  second  notice(5),  setting  out  a
proposal  to  modify  the  product  definition  by  removing  any  reference  to  weight  and
dimensions. It was found that the original weight and dimension criteria was no longer
valid as it is relatively  easy for the  producers to adapt their models by, for  example,
increasing  the  size  of  the  paper  tray  of  the  personal  fax  machine  above  the  original
height limitation.

It  was  also  examined  whether  fax  machines  using  the  so-called  thermal  transfer
technology  and  the  ones  using  thermal  paper  could  still  be  considered  as  one  single
product.  In  this  respect  no  difference  was  found  by  comparison  to  the  original
investigation  where  it  was  concluded  that  “  in  weight  and  size  and  their  essential
technical features, thermal transfer faxes are similar or identical to the thermal paper
models.  In  comparison,  the  printing  technology  used  for  the  two  product  types  in
question is, from the consumer perspective, just an ancillary element.” The definition
of the product was therefore reconfirmed by the current review investigation.

The  only  Community  producer  co-operating  in  the  investigation,  Österreichische
Philips Industrie GmbH (“Philips”), represented during the Investigation Period more
than  50%  of  the  total  Community  production  of  personal  fax  machines  pursuant  to
Articles  4(1)  and  5(4)  of  the  Basic  Regulation,  and  therefore,  as  in  the  original
investigation, constitutes the Community industry. There was no cooperation from any
other Community producer, although one company which is subsidiary of an exporting
producer  based  in  Japan,  co-operated  in  the  proceeding  in  its  capacity  as  a  importer
and it is understood that this related company also produces the product concerned in
the Community.

the  exporting  producers, 

importers  and
The  Commission  officially  advised 
representative  associations  of  importers  or  exporters  known  to  be  concerned,  the
representatives of the exporting country, the representative consumer organisation and
the Community producers of the initiation of the review. Interested parties were given
the opportunity to make their views known in writing and to request a hearing within
the time limit set out in the Notice of Initiation.

TERMINATION OF THE PROCEEDING

(8)

In April 2001 Philips formally informed the Commission of its decision to transfer a
major  part  of  its  manufacturing  capacities  of  personal  fax  machines  outside  the

 4 OJ C 184, 01.07.2000, p. 26.
 5 OJ C 311, 31.10.2000, p 4.

4

                                                
Community in the course of 2001. The remaining production of personal fax machines
would  be  gradually  phased  out.  The  transfer  concerns  personal  fax  machines,  which
use thermal transfer technology, while the production of personal fax machines using
thermal sensitive paper will remain in the Community during the phasing out period.
In view of this decision taken by the Community industry it was necessary to evaluate
whether  the  Community  interest  would  be  against  the  continuation  of  the  measures
under the changed circumstances.

(9) When assessing the Community interest aspects of the present case, the following was
considered: On the basis of the plans of Philips, the production of Community industry
of products subject to anti-dumping measures is expected to cease in the near future.
In such a situation, the maintenance of the anti-dumping measures concerned will not
provide  any  benefit  in  terms  of  protecting  production  against  possible  unfair  trade
practices. Therefore, any negative effect of the anti-dumping measures concerned will
be clearly disproportionate. Moreover, during the phasing out period, mostly imports
of personal fax machines produced by Philips outside of the Community would benefit
from the continued existence of anti-dumping measures on the countries concerned. It
is also noted that on the basis of the information available, the market share of Philips'
Community produced fax machines decreased considerably by the end of 2001.

(10)

(11)

(12)

In  view  of  the  above  reasons,  it  is  considered  that  compelling  reasons  exist  on
Community  interest  grounds  not  to  maintain  anti-dumping  measures  as  regards
imports  of  personal  fax  machines  from  the  countries  concerned.  The  Community
industry  and  the  other  parties  concerned  were  informed  accordingly  and  were  given
the opportunity to comment.

The  Community  industry  commented  the  following:  The  findings  concerning  the
transfer  of  production  have  taken  place  after  the  Investigation  Period,  whereas  no
efforts  were  made  to  verify  the  situation  of  other  Community  production  after  the
Investigation  Period  even  though  one  producer  from  the  countries  concerned  had
integrated its production in the Community.  Therefore the new developments  should
be studied before proposing the discontinuation of measures.

The situation on the Community market during the Investigation Period was evaluated.
Additionally, the institutions can take into account information relating to events that
have occurred after  the  Investigation Period provided that  these  events  have  a  major
impact  on  the  situation  on  the  Community  market  for  the  product  concerned.  The
decision of the Community industry to transfer a major part of its production outside
the  Community  is  considered  such  an  event.  During  the  proceeding  no  other
Community producer made itself known or submitted any information. As mentioned
above, the only other producer in the Community was related to an exporting producer
from  which  it  imported  the  product  concerned.  For  these  reasons  it  cannot  be
considered to form part of the Community production. In addition, it should be noted
that  the  company,  which  co-operated  in  the  proceeding  in  its  capacity  as  a  related
importer, has actually requested the repeal of the measures

(13)

It is therefore concluded that the anti-dumping proceeding concerning imports into the
Community of personal fax machines originating  in  the  People’s  Republic  of  China,
Japan,  the  Republic  of  Korea,  Malaysia,  Singapore,  Taiwan  and  Thailand  should  be
terminated without the imposition of anti-dumping measures,

5

HAS ADOPTED THIS REGULATION:

Article 1

Regulation  (EC)  No  904/98  of  27  April  1998  is  hereby  repealed  and  the  anti-dumping
proceeding  concerning  imports  of  personal  fax  machines,  currently  classifiable  within  CN
code ex 8517 21 00 and originating in the People’s Republic of China, Japan, the Republic of
Korea, Malaysia, Singapore, Taiwan and Thailand is hereby terminated.

Article 2

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

Done at Brussels,

For the Council
The President

6