Council Regulation (EC) No 976/2002 of 4 June 2002 imposing a definitive anti-dumping duty on imports of certain ring binder mechanisms (RBM) originating in Indonesia and terminating the anti-dumping proceeding in respect of imports of certain RBM originating in India
Date: 2002-06-04
Institutions: Council of the European Union
Subjects: India, Indonesia, anti-dumping duty, book trade, import, originating product

8.6.2002

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 976/2002

of 4 June 2002

imposing a definitive anti-dumping duty on imports of certain ring binder mechanisms (RBM)
originating in Indonesia and terminating the anti-dumping proceeding in respect of imports of
certain RBM originating in India

THE COUNCIL OF THE EUROPEAN UNION,

2. Present proceeding

Having regard to the Treaty establishing the European
Community,

(4)

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), and in
particular Article 9 thereof,

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

(5)

Whereas:

A. PROCEDURE

(1)

(2)

(3)

1. Previous proceeding concerning imports of ring
binder mechanisms originating in the People's
Republic of China and Malaysia

In January 1997, by Regulation (EC) No 119/97 (2), the
Council
imposed definitive anti-dumping duties on
imports of ring binder mechanisms (RBMs) originating
in the People's Republic of China (the PRC) and
Malaysia.

In September 2000, following the initiation of a review
pursuant to Article 12 of Council Regulation (EC) No
384/96 (the basic Regulation), the Council, by Regula-
tion (EC) No 2100/2000 (3), amended the definitive anti-
dumping duties on imports of RBMs originating in
the PRC.

In January 2002, the Commission initiated a review
pursuant to Article 11(2) of the basic Regulation of
anti-dumping measures applicable to imports of RBMs
originating in the PRC (4). No request for a review was
received concerning the measures applicable to Malaysia,
which consequently expired in January 2002.

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

(2) OJ L 22, 24.1.1997, p. 1.
(3) OJ L 250, 5.10.2000, p. 1.
(4) OJ C 21, 24.1.2002, p. 25.

(6)

(7)

(8)

On 18 May 2001, the Commission announced by a
notice (Notice of
Initiation) published in the Official
Journal of the European Communities (5) the initiation of an
anti-dumping proceeding with regard to imports into
the Community of certain RBMs originating in India and
Indonesia.

The proceeding was initiated as a result of a complaint
lodged on 3 April 2001 by the following Community
producers: Koloman Handler AG (Koloman), Austria,
and Krause Ringbuchtechnik GmbH & Co. KG (Krause),
Germany (the
representing a major
proportion, in this case about 90 %, of the Community
production of RBMs. The complaint contained evidence
of dumping of the said product and of material injury
resulting therefrom, which was considered sufficient to
justify the initiation of a proceeding.

complainants)

The initiation of a parallel anti-subsidy proceeding
concerning imports of the same product originating in
the same countries was announced by a notice published
in the Official Journal of the European Communities (6) on
the same date.

The Commission officially advised the exporting produ-
cers, exporters and importers known to be concerned,
the representatives of the exporting countries concerned,
the complainants and all known other Community
the
the
producers and users, about
proceeding.
Interested parties were given the oppor-
tunity to make their views known in writing and to
request a hearing within the time limit set in the Notice
of Initiation.

initiation of

in each of

One exporting producer
the countries
concerned made its views known in writing. All parties
who so requested within the above time limit and indi-
cated that there were particular reasons why they should
be heard were granted a hearing.

(5) OJ C 147, 18.5.2001, p. 2.
(6) OJ C 147, 18.5.2001, p. 4.

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Official Journal of the European Communities

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(9)

to all parties
The Commission sent questionnaires
known to be concerned and to all other companies
which made themselves known within the deadlines set
out in the Notice of Initiation. Replies were received
from one of the two complainant Community produ-
cers, one exporting producer in India, as well as from its
related exporter outside the Community, and from one
user and two unrelated importers in the Community.
The Commission sought and verified all the information
it deemed necessary for the purpose of a determination
of dumping, injury, causation and Community interest.
Verification visits were carried out at the premises of the
following companies:

(a) Community producers

— Koloman Handler AG, Austria

(b) Exporting producers in India

— ToCheungLee Stationery Mfg Co. Pvt. Ltd, Tiru-

vallore

(c) Related exporters outside the Community in Hong Kong

— ToCheungLee

(BVI)
Stationery Mfg Co.
company)

Limited/World Wide
(ultimate holding
Ltd

(d) Unrelated importers

— Bensons
Kingdom

International

Systems

Ltd, United

— Bensons International Systems BV, The Nether-

lands

(e) User

— Esselte, United Kingdom.

(10)

The investigation of dumping and injury covered the
period from 1 April 2000 to 31 March 2001 (invest-
igation period or IP). For the purposes of analysing
trends
the
Commission has examined data relating to the period 1
January 1998 up to the end of the IP (period consid-
ered).

the assessment of

relevant

injury,

for

3. Provisional measures

(11) Given the need to further examine certain aspects of
injury, causation and Community interest, in particular
in view of the ongoing restructuring of the complai-
nants, no provisional anti-dumping measures were
imposed on RBMs originating in India and Indonesia.

4. Subsequent procedure

(12) All parties were informed of the decision not to impose
provisional measures. The Commission continued to
information deemed necessary for
seek and verify all
definitive findings.
further on-the-spot
In particular,
investigations were carried out at the premises of a user

of RBMs in the Community and of two unrelated impor-
ters in the Community.

(13) All parties were informed of

the essential

facts and
considerations on the basis of which it was intended to
recommend the imposition of definitive anti-dumping
duties. They were also granted a period within which
they could make representations subsequent
to this
disclosure. The oral and written comments submitted by
the parties were considered and, where appropriate, the
findings have been modified accordingly.

(14)

(15)

(16)

(17)

(18)

(19)

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

The product concerned is certain ring binder mecha-
nisms (the product concerned). These are currently clas-
sifiable within CN code ex 8305 10 00. Lever-arch
mechanisms, falling within the same CN code, are not
included in the scope of this investigation.

RBMs consist of two rectangular steel sheets or wires
with at least four half-rings made of steel wire fixed on
them and which are kept together by a steel cover. They
can be opened either by pulling the half-rings or with a
small steel-made trigger mechanism fixed to the RBM.
The rings can have different shapes, the most popular
ones being round, rectangular or D-shaped.

RBMs are used to file different kinds of documents or
papers. They are used, inter alia, by producers of ring
binders, software and technical manuals, photo and
stamp albums, catalogues and brochures.

Several hundred different models of RBMs were sold
during the IP in the Community. The models varied by
size, shape and number of rings, the size of the base
plate and the system to open the rings (pull open or
opening trigger). In the absence of a clear dividing line
in the range of RBMs and given that all of them have the
same basic physical and technical characteristics, and
that the models of RBMs can, within certain ranges,
replace each other, the Commission established that all
RBMs constitute one single product for the purpose of
the present proceeding.

2. Like product

The Commission found that the RBMs produced and
sold on the domestic market in India and those exported
to the Community from India had the same basic phys-
ical and technical characteristics and uses.

The Commission also found that there was no difference
in the basic physical and technical characteristics and
uses between the RBMs imported into the Community
originating in India and the RBMs produced by the
Community industry and sold on the Community
market.

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(20)

(21)

In view of the lack of cooperation from any Indonesian
producer, the Commission relied on facts available in
accordance with Article 18 of the basic Regulation. In
this regard and in the absence of any other information
available for the country, the Commission considered it
appropriate to make use of the information submitted in
the complaint, according to which the RBMs produced
and sold in Indonesia or exported to the Community
and the RBMs produced by the complainant Community
producers and sold on the Community market are alike.

It was therefore concluded that the RBMs produced and
sold by the Community industry on the Community
market, the RBMs originating in India and Indonesia
exported to the Community and the RBMs produced
and sold on the domestic market in India and Indonesia
were all like products within the meaning of Article 1(4)
of the basic Regulation.

(22) During the IP the product concerned was subject to a
conventional customs duty of 2,7 % in 2000 and 2,7 %
in 2001. Under the GSP regime the product concerned
imported from India and Indonesia benefited from a
reduction amounting to 100 % of
the conventional
customs duty payable in 2000 and 2001. As a result,
the duty applied was 0 % in 2000 and 0 % in 2001.

C. DUMPING

1. India

(23) One company replied to the questionnaire for exporting
producers. A company outside the Community related
to this exporting producer also replied to the question-
naire. On the basis of import data reported by Eurostat,
this exporting producer accounted for all Indian exports
to the Community.

(a) Normal value

(24)

(25)

For the purpose of determining normal value, it was first
established whether the total domestic sales of RBMs of
the sole cooperating Indian exporting producer were
representative in comparison with its total export sales
to the Community. In accordance with Article 2(2) of
the basic Regulation, domestic sales were not considered
representative since the total domestic sales volume of
the exporting producer was less than 5 % of its total
export sales volume to the Community.

In the absence of representative domestic sales, or sales
by any other exporting producer in the domestic market,
or other sales in the same general category of products
by the exporting producer, normal value had to be
constructed in accordance with Article 2(3) of the basic
Regulation on the basis of the cost of manufacturing

plus a reasonable amount
administrative (SG and A) costs and for profits.

selling, general and

for

(26)

(27)

The company's own SG and A costs and profit on
domestic sales of the product concerned were added to
the manufacturing costs of
In
accordance with Article 2(5) of the basic Regulation, SG
and A costs declared by the exporting producer were
adjusted to reflect its audited financial statements.

the exported models.

Following disclosure of the essential facts and considera-
tions on the basis of which it was intended to impose
definitive measures, the cooperating Indian exporting
producer argued that, in the absence of representative
domestic sales, its own SG and A and profit margin on
domestic sales could not be used for the construction of
normal value and that the profit margin was not reason-
able in comparison to the profit margin, used for the
injury elimination level calculation, used in previous
investigations and actually attained on export sales.

(28) As regards SG and A, the argument put forward by the
Indian exporting producer was not
supported by
evidence that the company's own SG and A would have
been significantly different had the domestic sales been
more than 5 % of exports. Accordingly, this claim was
rejected.

(29) As regards profit, the situation was reviewed in light of
new data obtained for the Indian domestic market. Based
on this new data, it was determined that a reasonable
profit margin, not exceeding the profit normally realised
by other exporters or producers on sales of the same
general category of products in the domestic market of
the country of origin, India, would not exceed 5 %. The
calculation was accordingly revised on this basis.

(b) Export price

(30) All export sales to the Community were made to inde-
pendent importers in the Community and the export
price was established pursuant to Article 2(8) of the
basic Regulation by reference to the prices actually paid
or payable.

(c) Comparison

(31)

(32)

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 the basic Regulation.

Sales to the Community were made through a related
company in Hong Kong. This company carried out the
functions of a trader and an adjustment was made to the
export price from this company in Hong Kong by
deducting a commission from the export price to take
account of the functions performed by it.

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(33) Allowances

for differences

insurance,
packing and credit costs have also been made where
applicable and justified.

in transport,

(41)

(d) Dumping margin

(34) As provided by Article 2(11) of the basic Regulation, the
weighted average normal value of each model of the
product concerned exported to the Community was
compared to the weighted average export price at ex-
factory level for the same model and at the same level of
trade.

(35)

(36)

(37)

The comparison showed that no dumping existed for
exports of RBM made by the cooperating exporting
producer during the IP. The definitive dumping margin
expressed as a percentage of the CIF import price at the
Community frontier duty unpaid is as follows:

— ToCheungLee Stationery Mfg Co. Pvt. Ltd: 0,0 %.

Since the cooperating exporting producer accounted for
all Indian exports to the Community of the product
concerned, it was decided to set the residual dumping
margin at the level of the dumping margin found for
this cooperating exporting producer,

i.e. 0,0 %.

2. Indonesia

The sole known exporting producer in Indonesia and its
related importer did not reply to the questionnaire. In
accordance with Article 18 of the basic Regulation, this
company was duly informed that should it not coop-
erate findings for it would be based on the facts avail-
able. Despite this, the company still did not cooperate
with the investigation. In accordance with Article 16(1)
of the basic Regulation no verification visit was carried
out at the premises of this exporting producer.

(a) Normal value and export price

(38) Using facts available and in the absence of any other
reliable information available for the country,
it was
considered appropriate to base the determination on the
information submitted in the complaint. In accordance
with Article 18(5) of the basic Regulation; this informa-
tion was checked, where practicable, by reference to
information from other independent sources.

(39) Normal value was constructed for five different types of
RBMs in Indonesia on the basis of the cost of manufac-
turing plus a reasonable amount for SG and A costs and
for profit.

(40)

The export price was determined on the basis of the
price to the first unrelated buyer in the Community for
each of the five types. Adjustments for SG and A costs
and a reasonable profit were made based on information
contained in the complaint.

The sole known exporting producer in Indonesia argued
that the normal value established on the basis of the
complaint was not representative of their true normal
value and furthermore,
the
Commission is required to check the information in the
including
independent
complaint
published price lists, official statistics or other indepen-
dent official

that under Article 18(5)

information.

sources

against

(42) As mentioned above, this exporting producer did not
provide any data for the establishment of normal value.
It was attempted, as much as possible, to find alternative
sources of information and to cross-check the complaint
data through internet searches, examination of data
from an independent importer and analysis of data from
Eurostat.
In this respect, the complaint included five
specific models with a diverse range of prices for normal
value and compared those prices with the equivalent
export prices for the same models. A comparison of
each individual normal value or a simple average of the
normal values from the complaint with the weighted
average export price from Eurostat would not have
provided a meaningful basis for a finding. Consequently,
no alternative data was obtained with regard to normal
value or export price which was considered more reli-
able than that in the complaint.

(b) Comparison

(43) Adjustments for transport and distribution costs were
made where applicable in order to allow a fair compar-
ison. The adjustments were equally based on informa-
tion contained in the complaint which was verified.

(c) Dumping margin

(44) As provided by Article 2(11) of the basic Regulation, the
normal values of each type considered, of the product
concerned exported to the Community, were compared
to the export prices at ex-factory level for each compar-
able type.

(45)

The comparison showed the existence of dumping in
respect of Indonesia. The dumping margin expressed as
a percentage of the CIF import price at the Community
frontier duty unpaid for all Indonesian exporting produ-
cers is as follows:

(46) All exporters: 144,0 %.

D. INJURY

1. Preliminary remark

(47) Given that only one Indian exporting producer cooper-
the Community
ated in the investigation and that
industry comprises only one company, specific data
relating to these companies have been indexed or put in
the form of a range in order to preserve the confiden-
tiality of the data submitted in accordance with Article
19 of the basic Regulation.

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2. Community production

added value. Consequently, the status of the producer as
Community producer is not affected by these imports.

(48)

It was established that, in addition to the two complai-
nant Community producers' output, production was also
taking place in Italy and Spain. Although the Italian
company involved did not supply complete data to the
Commission, the information received confirmed that,
during the IP, it represented a share of around 10 % of
total Community production. As regards the Spanish
company, which did not supply complete data to the
Commission,
it was found that in 2001 it produced
negligible volumes of the product concerned, while it
imported a major portion of its sales from one of the
countries concerned. It was concluded therefore that it
should be considered as an importer rather than a
producer.

(49)

It was also found that a company located in the United
Kingdom had formerly been involved in the production
of a certain type of RBMs. This company confirmed in
writing that its production of the product concerned
ceased some years ago. No other producers in the
Community are known.

(50)

Based on the above, the production of the complainants
and the other Community producer located in Italy
constitute the total Community production within the
meaning of Article 4(1) of the basic Regulation.

3. Definition of the Community industry

(a) Community industry

(51) Of the two complainant producers one did not reply to
the questionnaire (Krause) and was considered to be non
cooperating. This producer, even though supporting the
complaint, was therefore not regarded as being part of
the Community industry. Regarding the other producer
(Koloman),
it was found that this company not only
produced the like product in the Community during the
IP, but also produced parts of it in Hungary. In addition
to its Community production, Koloman traded the
Hungarian products in the Community and also used
parts produced in Hungary for its Community produc-
tion. Moreover, part of the production of the cooper-
ating Community producer was relocated at the begin-
ning of the year 2000 by means of transfer of certain
machinery from Austria to Hungary. However, despite
the foregoing,
this company
the core activity of
remained in the Community i.e. head office, ware-
housing, sales office, production of a significant amount
of the product range, as well as significant technical and
marketing know-how. The imported sales completed the
product range of the like product and did not therefore
affect the Koloman's status as Community producer. As
to the production of parts in Hungary and their subse-
quent
the
incorporation into the finished product,
investigation established that these incorporated parts
represented only a minor proportion of the cost of
production of the finished products and thus, of the

(52)

The investigation confirmed that the sole cooperating
Community producer represented more than 25 % of
the Community production of RBMs, thus fulfilling the
requirements of Article 5(4) of the basic Regulation. It
was therefore deemed to constitute the Community
industry within the meaning of Article 4(1) of the same
Regulation and will be hereinafter referred to as ‘the
Community industry’.

(b) Events occurring after the investigation period

(53)

In November 2001,
i.e. after the end of the IP, the
cooperating Community producer Koloman went into
receivership and as a result of a liquidation procedure,
was taken over by an Austrian company, whose parent
company, located in the United Kingdom, also acquired
the Hungarian affiliate of Koloman.

(54)

The acquirers confirmed to the Commission their
ongoing support of the complaint.

(c) Community consumption

(55)

(56)

IP,

included in the scope of

information provided by the

The apparent Community consumption was established
on the basis of the sales volumes of the Community
industry on the Community market, the sales of the
other Community producers on the Community market
as reported in the complaint, duly adjusted as concerns
the
cooperating
exporting producer and Eurostat import data. Account
was taken of the fact that CN code 8305 10 00 also
covers products not
this
proceeding. However, with regard to Indonesia, given
the lack of cooperation of Indonesian exporters, best
In this
facts available were used,
respect, based on the complaint as best evidence avail-
able, all
imports under the abovementioned CN code
were considered to constitute the product concerned.
The non cooperating Indonesian exporter claimed that
its exports to the Community market were around 15 %
lower than the import volumes used. However,
this
claim could not be verified and the difference was such
that it could be explained by the ratio used to convert
Eurostat statistics, which are in tonnes, to units. On this
basis, Community consumption increased by 5 %
between 1998 and the IP. In more detail, it remained
relatively stable between 1998 and 1999 and then
steadily increased until the end of the IP when it was
found to be around 348 million units.

i.e. Eurostat data.

4. Imports from the country concerned

It is recalled that the proceeding against India is termi-
nated. Therefore, only imports from Indonesia are being
analysed as
remaining country
concerned.

from the

imports

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(a) Volume of dumped imports

(b) Capacity and capacity utilisation rates

(57)

import

volume originating

Even if
in Indonesia
decreased between 1998 and 2000 and then slightly
rose again between 2000 and the IP, it should be noted
that while imports from the country concerned only
started in 1997, they were already significant in 1998
and were at a level of 32 million pieces in the IP.

(63)

The production capacity followed the same trend as the
production and decreased by 26 % between 1998 and
the IP.

(64) On this basis,

the capacity utilisation rate remained

stable over the period considered.

(b) Market share of dumped imports

(c) Stocks

(58)

The market shares held by Indonesian imports were
found to be between 8 % and 13 % having decreased by
around 2 percentage points since 1998.

(c) Prices of dumped imports

(i) P r i c e e v o l u t i o n

(59)

The weighted average import prices of imports origin-
ating in Indonesia decreased by 5 % between 1998 and
the IP, i.e. from ECU 105 per thousand units to EUR 99
thousand units. The decrease was particularly
per
marked between 1998 and 1999 when prices fell by 3 %
and between 2000 and the IP when they fell by 2 %.

(65)

The Community industry's end-of-year stocks decreased
by 12 % between 1998 and the IP.

(d) Sales in the Community

(66) Despite an increase in Community consumption, the
sales volume of the Community industry fell signifi-
cantly between 1998 and the IP, by 25 %. A decrease
occurred between 1998 and 1999 (– 10 %), and an even
more pronounced one between 1999 and 2000,
(– 15 %).

(e) Market share

(67)

The market share of the Community industry decreased
by more than 4 percentage points between 1998 and
the IP, thus following the same trend as the volume sold.

(ii) U n d e r c u t t i n g

(f) Prices

(60) Given the lack of cooperation from Indonesian expor-
ters, the price comparison was made on the basis of
Eurostat data duly adjusted for customs duties and post
importation costs and compared, at the same level of
trade, to Community producers' ex-works prices.

(61) On that basis, the price undercutting was reviewed and
amended when necessary on the basis of information
verification visits.
provided during
found to undercut
Imports
Community industry prices between 30 % and 40 %. It
should also be noted that there was price suppression
since the Community industry was not profitable.

the
from Indonesia were

additional

5. Situation of the Community industry

(a) Production

(62)

The Community industry's production followed a down-
ward trend over the period, decreasing by 25 % between
1998 and the IP. A significant decrease took place
between 1998 and 1999 (– 15 %). A further significant
decrease occurred also between 1999 and 2000 and
subsequently production volume remained stable until
the end of the IP.

(68)

(69)

(70)

(71)

The average net sales price of the Community industry
decreased by 4 % between 1998 and the IP. Such a
decrease was particularly marked between 1998 and
1999 (6 %), i.e. when the import prices of the country
concerned significantly decreased,
explained in
recital 59.

as

(g) Profitability

The weighted average profitability of the Community
industry deteriorated by 10 percentage points between
1998 and the IP became a loss as from 2000. As a result
of this unfavourable development and as mentioned in
the Community industry had to go into
recital 53,
receivership.

(h) Cash flow and ability to raise capital

The development of the cash flow generated by the
Community industry in relation to sales of RBMs is very
similar to that of
i.e. a significant
the profitability,
decrease between 1998 and the IP.

The investigation established that the Community indus-
try's ability to raise capital became more difficult at this
time owing to its financial situation and in particular to
its deteriorated profitability.

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(i) Employment, wages, and productivity

6. Relocation of part of the production

Employment of the Community industry related to the
production of RBMs decreased by 30 % between 1998
and the IP. The total amount of wages as a whole
followed a similar trend, falling by 27 % during the same
period, thus leading to an increase of the average wage
by 5 % between 1998 and the IP. Productivity of the
Community industry's workforce, measured as produc-
tion volume per person employed increased by 8 %
between 1998 and the IP.

(78)

(72)

(73)

(74)

(j) Investment and return on investment

The level of investments decreased by 39 % between
1998 and the IP. The decrease was particularly marked
between 1999 and 2000. The investigation showed that
most of this capital expenditure was related to replacing
or maintaining existing facilities.

The return on investment, expressed as the relation
between the net profits of
the Community industry
and the net book value of its investments, followed very
closely the profitability trend and became negative in
2000.

(k) Growth

(75) While Community consumption increased by 5 %
between 1998 and the IP,
the
Community industry decreased by around 25 % and the
volume of imports concerned remained significant. The
Community industry was therefore unable to benefit
from the
the demand on the
Community market.

the sales volume of

increase of

slight

(l) Magnitude of the dumping margin

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

(m) Recovery from the effect of past dumping

In order to verify that the deterioration of situation of
the Community industry was not due to a change in the
pattern of the Community production, it was also exam-
ined whether the relocation of part of the production
mentioned in recital 51 (by means of transfer of machi-
nery from Austria to Hungary), which took place at the
beginning of the year 2000, had an effect on the situa-
tion of the Community industry. It happened that while
the decreasing trend of certain injury indicators was
aggravated by this relocation (i.e. production, production
capacity and sales volume), the trend of the capacity
the average sales prices improved,
utilisation and of
leading to a limitation of losses. For instance,
it was
assessed that around 60 % of the decrease in the produc-
tion is linked to the relocation, and around 80 % of the
sales volume decrease, while without this relocation, the
price decrease would have been three times higher and
the profitability would have lost 7 additional percentage
points. Given the above, it was concluded that the dete-
rioration of the situation of the Community industry
the
was not due to a change in the pattern of
Community production.

(79)

the core activity of

the
It has been argued that
Community industry is no longer in the Community
since the relocation to Hungary allegedly entailed a 60 %
decline in its Community production, and a 80 %
decline in its Community produced sales.

(80) As already explained in recital 78, the relocation did not
entail such a decrease in the Community industry's
its
production, but only a decrease of 15 % of
Community production and 20 % of
its Community
produced sales. Therefore,
the conclusion stated in
recital 51 regarding the core activity of the Community
industry is confirmed.

7. Conclusion on injury

(81) A deterioration of

the situation of

the Community
industry (after having taken account of the relocation as
outlined in recital 78) has been found by reference to
the period considered.

(77)

The Community industry is still in the process of recov-
ering from the effect of the past dumped imports of
RBMs originating in the PRC and Malaysia. As
mentioned, Regulation (EC) No 119/97 imposing defin-
itive measures was amended by Council Regulation (EC)
No 2100/2000 to take account of the findings of an
anti-absorption procedure against the PRC. Moreover,
while measures against Malaysia lapsed in January 2002,
a review has been opened with respect
to Chinese
imports of RBMs.

(82) While the anti-dumping measures on imports of RBMs
originating in the PRC and Malaysia led to a substantial
decrease of imports originating in these countries after
1998, the Community industry could not fully benefit
from this development. As from the year 1998, most
injury indicators, i.e. production, sales volumes, prices,
market share, profitability, return on investment, cash
flow and employment developed negatively. In particular
the decrease in the sales prices of
the Community
industry had a negative effect on its profitability.

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(83) Moreover, while sales of

the Community industry
decreased between 1998 and the IP, imports originating
in Indonesia were substantial. The investigation has
shown that during the IP the Indonesian imports were
made at prices undercutting those of the Community
industry between 30 % and 40 %. In addition, there was
price suppression.

(84)

The situation of the Community industry is thus found
is
to have deteriorated to such an extent
concluded that the Community industry has suffered
material

injury.

that

it

(85)

It is recalled that after the IP, the poor financial situation
led the Community industry to go into receivership.

E. CAUSATION

1. Introduction

(86)

(87)

In accordance with Article 3(6) and (7) of the basic
Regulation, it was examined whether the imports origin-
ating in Indonesia in view of their volume and their
effect on prices in RBM Community market, 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 from Indonesia.

2. Effect of the dumped imports

The volume of the dumped imports decreased by 14 %
between 1998 and the IP, and its corresponding share of
the Community market by 2 percentage points during
the same period. However, they remained significant and
always held a market share which ranged between 8 %
and 13 % between 1998 and the IP. These imports also
the Community
significantly undercut
industry. The market share of the Community industry
went down by more than 4 percentage points. At the
same time, average prices of the Community decreased
by 4 %. The actual decline in prices was in fact even
higher as outlined in recital 78.

the prices of

(88) During the same period, between 1998 and the IP, the
situation of the Community industry deteriorated as illu-
strated by the decrease of sales volume and market
share, the price decrease and the substantial deteriora-
tion of its profitability, which turned to losses. Thus, the
Community industry could not significantly benefit from
the imposition of the abovementioned measures against
the PRC and Malaysia.

(89)

(90)

(91)

(92)

(93)

(94)

It has been argued by an Indonesian exporter that Indo-
nesian exports could not have caused injury since they
decreased between 1999 and 2000 and held a de minimis
market share. The same company alleged that imports
from Indonesia could not have any real impact on the
Community industry since the Community production
was five or six times higher than the volume of Indone-
sian imports.

It is however recalled that although Indonesian imports
decreased between 1998 and 2000,
they slightly
increased between 2000 and the IP without reaching the
level of 1998. In addition, as already explained in recital
58, between 1998 and the IP, Indonesian imports held a
market share situated between 8 % and 13 % which is
substantial and clearly above de minimis. Finally, it is also
recalled that the Community industry is clearly defined
in recital 52 and that its level of production is far below
that which has been alleged by the Indonesian company.

It can therefore be concluded that the dumped imports
originating in Indonesia have undermined the effects of
the anti-dumping measures adopted in 1997 against the
PRC and Malaysia and amended in 2000 as regards the
PRC, and that they have been a substantive cause of the
negative developments as summarised in the preceding
paragraphs.

3. Effect of other factors

(a) Imports from other third countries

Consideration was given to whether factors, other than
the dumped imports from Indonesia, might have led to
or contributed to the injury suffered by the Community
industry and especially whether imports from countries
other than Indonesia may have contributed to this situa-
tion.

The import volume from other third countries increased
by 17 % between 1998 and the IP while their market
share increased by more than 5 percentage points during
the same period. This increase is to a large extent due to
the increase in imports originating in India, Hungary and
Thailand, whereas in the meantime, imports originating
in the PRC and Malaysia significantly decreased owing to
the anti-dumping measures imposed in 1997.

The average unit price of imports from third countries
decreased by 16 % between 1998 and the IP. Prices from
almost all third countries decreased during this period
except prices of imports from the PRC, which due to the
effect of the anti-dumping measures increased signifi-
cantly although reaching the
the
Hungarian prices only in the IP.

same

level

as

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(i) I n d i a

compared to the effect of the dumped imports from
Indonesia.

(95)

than prices of

It was firstly examined whether imports originating in
India might have contributed to the injury suffered by
the Community industry. However, although imports
from India increased significantly between 1998 and the
IP, they were found to be undercut by the imports from
Indonesia whose prices were found to be in a range of
2 % to 30 % lower
Indian imports
between 1998 and the IP. In addition, it should be noted
that when Indian imports started in 1998, prices of
Indian imports were found to be more than 40 % higher
Indonesian imports for a comparable
than prices of
volume of RBMs. Since then,
Indian import prices
decreased steadily but have always been above Indone-
sian prices and were still found to be more than 5 %
higher than Indonesian prices during the IP. It is there-
fore concluded that, although Indian imports have had a
negative impact on the situation of
the Community
industry, the negative impact of the dumped imports
from Indonesia taken in isolation was nonetheless
substantial.
Indonesia was an influential and
important player in the Community. Their volume of
exports to the Community was lower than that of Indian
exports but still substantial. Indonesian exports undercut
the Community industry's prices even more than Indian
exports. It is also noted that the aforementioned analysis
was seriously impeded by the fact that Indonesia did not
cooperate and, therefore, no information was available
in terms of product types on market segments repre-
sented by exports from Indonesia.

Indeed,

(97)

(98)

(iii) H u n g a r y

In order to determine whether imports from Hungary, in
isolation, caused injury to the Community industry, the
level of imports and prices on the Community market
were examined.

The analysis as regards Hungarian imports between
1998 and the IP was based on data provided in the
questionnaire reply of the Community producer, whose
plant
sole Hungarian
producer.

in Hungary represents

the

(99) During the period considered, imports of RBMs origin-
ating in Hungary increased in volume. As to their prices
charged by the Community industry on the Community
market for its products imported from Hungary, while
these decreased during the period considered,
they
remained the highest amongst the import prices from
the other third countries and were undercut by imports
from Indonesia.

(100) The Hungarian production of RBMs of the Community
industry was analysed and compared to the Austrian
production.
there was very little
overlap between the models produced in Austria and
Hungary.

It was found that

(ii) T h e P e o p l e ' s R e p u b l i c o f C h i n a

(96)

Consideration was also given to whether the absorption
the anti-dumping measures imposed in 1997 on
of
imports from the PRC might have led to or contributed
to the injury suffered by the Community industry. In
this respect, it is noteworthy that although the absorp-
tion of the duty on imports from the PRC have under-
mined the effect of the measures imposed in 1997 with
regard to the sales prices, those measures still led to a
significant reduction of the volumes imported from the
PRC as soon as 1998. In addition, it should be noted
that while imports from Indonesia only began in 1997,
they had already reached around the same level as the
imports from the PRC by 1998. Since then,
imports
from the PRC dramatically decreased while Indonesian
imports decreased by a much lesser extent until the IP
when these latter imports were still more than three
times higher than imports from the PRC. Therefore,
given that the import volumes from the PRC were far
below the import volumes from Indonesia during the IP,
it was concluded that these imports did not have as
serious an impact on the Community industry as

(101) Given this small percentage of models manufactured
both in Austria and in Hungary, it was concluded that
the Hungarian products completed the product range of
the Community industry enabling it to offer a wider
choice of models to customers and that they did not
negatively affect
the Community
industry.

situation of

the

(102) On the basis of the above, it was concluded that imports
from Hungary did not materially contribute to deteri-
orate the situation of the Community industry.

(iv) T h a i l a n d

(103) Given that, as already mentioned in Council Regulation
(EC) No 2100/2000,
‘some of the goods of Chinese
origin were declared to national customs authorities as
being of Thai origin and thus avoided payment of the
anti-dumping duties normally due’, it was also consid-
imports
ered appropriate to evaluate the impact of
consigned from Thailand.

(104)

In this respect,
imports from Thailand significantly
increased during the period considered since they started
in 1998 with around one million units and rose to more
than 23 million units in the IP.
it was
established on the basis of Eurostat data, that sales'
prices of Thai imports were generally below the prices of
Indonesian imports.

In addition,

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(105) However, although Thai prices were found to be around
20 % lower than the prices of the Indonesian imports, it
is recalled these latter are more than one third higher
than import volumes from Thailand. Therefore, given
that
the volumes imported from Thailand are still
substantially below the volumes imported from Indo-
nesia,
it was concluded that these imports could not
have had a significant impact as compared to the effect
of the dumped imports from Indonesia.

(106) The analysis in respect of Thailand has been questioned
by an Indonesian exporter, who did not cooperate. In
this respect,
it argued that the level of imports from
Indonesia is comparably lower and that prices are higher
when compared to Thai imports. It is however recalled
that although Thai prices were lower than the prices of
the imports from Indonesia, the volumes imported from
Indonesia were more than 30 % higher than imports
from Thailand. Therefore,
the conclusion drawn in
recital 105 is confirmed.

(b) Further factors

(107)

It was also examined whether factors other than the
abovementioned might have contributed to the injury
suffered by the Community industry.

(108)

It has been contended by the cooperating importers that
RBM business is extremely price sensitive and therefore
producers must sell large volumes to be competitive. It
was also argued by the same parties that the Community
industry relies only on the Community market, instead
of the world market, which would allow it to be more
cost efficient. On this matter, it is recalled that the ratio
of sales of the Community industry inside and outside of
the Community did not significantly change between
1998 and the
even though the
Community industry was strongly oriented towards the
Community market,
sales permitted the
its export
Community industry to be profitable in 1998 at a time
when imports from Indonesia were significant.

IP. Nevertheless,

(109) One user argued that the injury was caused by the
strong competition in the office supplies industry. This
competition allegedly led the users/distributors of the
product concerned to exert a price pressure on the
Community industry thus leading to a price decrease. In
this respect, it is underlined that the dumped imports
must have significantly worsened the price pressure
exerted by the users in the Community, thus causing
injury to the Community industry.

(110) Moreover, it was examined whether the price depression
could be attributable to the normal course of the RBM
business, since prices from almost all sources of supply
decreased between 1998 and the IP.

(111)

it

the general price
is recalled that
In this respect,
decrease should be seen in the light of continued unfair
practices, firstly from the PRC and Malaysia, secondly
from Indonesia, which have influenced the Community
market.

(112)

In addition, as mentioned in recital 108,
the RBM
market is extremely price sensitive. Therefore, given that
prices of
the Indonesian imports were found to be
dumped and lower than the average unit price of all
other imports of RBMs between 1998 and the IP, it is to
be concluded that imports from Indonesia, which held
between 8 % and 13 % of the Community market during
the IP, have had a price depressive impact on this
market.

(113) Finally, it was analysed if the price behaviour of Krause,
the non-cooperating Community producer, could have
contributed to the injury suffered by the Community
industry. The additional examination of data referring to
Krause showed that
this Community producer itself
suffered a deterioration of its situation during the period
considered, particularly as concerns sales price and prof-
itability. It appears therefore that it has not contributed
to the injury suffered by the Community industry, and
that,
it has been equally negatively affected by the
imports from Indonesia, being forced to decrease its
prices,

like the Community industry.

(114) For all the reasons explained above, it was concluded
that the price depression on the Community market
should not be seen as representing a normal develop-
ment of trade, but rather as the consequence of unfair
commercial practices of Indonesia.

(115)

It was contended by the Indonesian authorities that the
Indonesian exports were limited to supplying an Italian
producer of ring binders to complement its product
range.

(116) However, this assertion was found to be in contradiction
with the statement made by the non-cooperating Indo-
nesian exporter who argued that the sole market where
the Indonesian producer has significant market share is
the United Kingdom. This is also confirmed by Eurostat.

(117) This

latter producer alleged that

these Indonesian
exports could not cause injury since its main market is
the United Kingdom where the Community industry
does not have any significant activities. However,
in
addition to the fact that this assumption is in contradic-
tion with the allegation made by the Indonesian authori-
ties, it is also recalled that the injury analysis is made on
a Community basis and not on a regional basis.

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4. Conclusion on causation

(123)

(118)

In view of the above, it is concluded that the material
injury suffered by the Community industry, which is
characterised by a negative development of production,
sales volumes, prices, market share, profitability, return
on investment, cash flow and employment duly adjusted
to take account of the relocation to Hungary, was caused
the
by
combined effect on the Community industry's situation
of imports from India, Thailand and the PRC as well as
the partial relocation of Community production was
only limited.

the dumped imports

concerned.

Indeed,

(119)

It was also contended by an Indonesian exporter who
did not cooperate, that there is a contradiction between
the conclusion stated in recital 118 and the fact that
there is sufficient evidence to open an expiry review on
the PRC.

(120)

that

the deterioration of

to analyse the situation of

In this respect, it should be recalled that the scope of an
expiry review is
the
Community market in the perspective of the likelihood
of continuation or recurrence of dumping and injury
should the measures in force be removed. Consequently,
the fact
the Community
industry has been attributed during this investigation
period to Indonesia, does not affect the analysis of the
future behaviour in the Community market of Chinese
exporters and its likely effect on the situation of the
Community industry. It is also recalled that the Chinese
market share was at a very low level during the last two
years of the period considered.

(121) Given the analysis, which has properly distinguished and
separated the effects of all the known factors on the
situation of the Community industry from the injurious
effects of the dumped imports, it is hereby concluded
that these other factors as such do not reverse the fact
that the material injury found must be attributed to the
dumped imports.

In order to assess the likely impact of the imposition or
non-imposition of measures, information was requested
from all interested parties. Questionnaires were sent to
the two complainant Community producers, two other
companies known as producers in the Community, nine
unrelated importers, 49 users and one users' association.
One complainant Community producer (Koloman), two
unrelated importers as well as one user related to those
importers replied to the questionnaire. Another user
made a submission without replying to the question-
naire.

(124) These replies and submissions formed the basis for the

Community interest analysis.

2. Interest of the Community industry

(a) Preliminary remark

(125) Several producers of RBMs in the Community stopped
manufacturing the product concerned within the last
few years. As to the companies left, the investigation
established that, as mentioned in recital 49, a company
located in the United Kingdom also stopped its produc-
tion some years ago. As to the company located in Italy,
it did not represent a significant
it was found that
in the
proportion of
Community and imported a significant part of its sales.
As to the Spanish company it found that it should be
considered as an importer rather than a producer since it
produced negligible volumes of the product concerned,
while imported more than 90 % of its sales from Indo-
nesia. It is concluded, therefore, that the two complai-
nants are the only Community producers of RBMs with
a significant production left.

the production of RBMs

F. COMMUNITY INTEREST

1. Preliminary remark

(122)

It was examined whether, compelling reasons existed
that could lead to the conclusion that it is not in the
Community interest to adopt measures in this particular
case. For this purpose, and in accordance with Article
21(1) of the basic Regulation, the impact of possible
measures on all parties involved in this proceeding and
also the consequences of not
taking measures were
considered on the basis of all evidence submitted.

(126)

(127)

the

should be

recalled that

It
two complainant
Community producers were heavily injured already in
the past by imports of RBMs originating in the PRC and
Malaysia which, as described in Regulation (EC) No 119/
97, led, inter alia, to a 28 % decrease of their workforce
between 1992 and October 1995. As shown under
recital 72, a further reduction of the Community indus-
try's workforce of 30 % occurred between 1998 and
the IP.

the material

injury suffered by the
In view of
it is concluded that, should the
Community industry,
Community industry not
from the unfair
dumping practices, it is likely that the production in the
Community will cease completely and that the users will
be significantly dependant on imports.

recover

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(b) Financial situation of the Community industry

(128) The financial situation of the Community industry devel-
oped so negatively during the period considered, that
after the IP the Community industry went into receiver-
ship, as mentioned in recital 53. It should be noted that
the Community industry's loss-making situation resulted
from its difficulty to compete with the low-priced
dumped imports. However, the fact that the cooperating
Community producer has been taken over, shows that
the production of RBMs in the Community is in the
process of being restructured and that a strong effort is
being made to keep this industry viable and to render it
profitable.

the
tion, by improving the financial
Community industry, had the indirect effect to make it
more attractive for the new investor that recently took it
over.

situation of

(134) As to the risk of any additional relocation, the Commis-
sion received satisfactory confirmation that such reloca-
tion is not foreseen by the Community industry.
In
addition, there is no reason to consider that such a move
is likely since the restructuring effort combined with the
imposition of anti-dumping duty should enable the
Community industry to enjoy a profitable situation once
again.

(c) Possible effects of the imposition/non-imposition of meas-

ures on the Community industry

3. Interest of importers

(129) Following the imposition of measures, the restoration of
fair market conditions would enable the Community
industry to recover lost market share and, by increasing
capacity utilisation, to decrease unit production costs
and to increase profitability. Furthermore, the measures
are expected to have a positive effect on the level of the
Community industry's prices.
is
expected that
the increase in production and sales
volume, on the one hand, and the further decrease in
unit costs, on the other hand, eventually combined with
a moderate price increase, will allow the Community
industry to improve its financial situation.

In conclusion,

it

(130) To the contrary, should anti-dumping measures not be
imposed, it is likely that the Community industry would
have to further lower its prices and/or continue to lose
market share. In both scenarios, the financial situation of
the Community industry is likely to worsen. As a further
consequence, it is likely that the Community production
would, within a short period of time, definitively cease.

(131) Moreover, given that the Community industry does not
only produce the product concerned but also other
products accounting for about one third of its turnover,
it is very likely that the closure of production lines
manufacturing RBMs would affect the viability of the
whole factory and lead to closure of all production lines
with a consequent wider negative effect on employment
and investment.

(d) Possible relocation of the Community industry production

(135) Certain importers, who, however, did not purchase
RBMs from Indonesia, submitted that switching sources
of supply could involve additional costs or transitional
problems. More particularly, the importers underlined
that owing to the anti-dumping measures imposed in
1997, they had already been forced to change their
source of supply.

(136) However, it is recalled that the purpose of anti-dumping
measures is not to force importers or users to change
their source of supply but to restore fair competition on
the Community market. In addition, these importers also
recognised that a number of other third countries could
easily produce RBMs and they foresaw no difficulties in
sourcing from a country not covered by anti-dumping
measures. Moreover, they could also trade Community
producers' products. Therefore any problems resulting
from a possible switching of supply are likely to be
temporary and unlikely to offset the positive effect on
the Community industry of anti-dumping measures
against injurious dumping.

4. Interest of users and consumers

(a) Users

(137)

It has been alleged both by the cooperating unrelated
importers and user (ring binder producer) that the impo-
sition of anti-dumping measures would have a serious
adverse impact on the financial situation of the users.

(132)

It was examined whether any measures could be consid-
ered as not being in the interest of the Community given
the relocation of part of
the Community industry
production to a third country. The possibility of any
further relocation was also examined.

(138)

(133) First of all, as explained in recital 78, it is recalled that
the relocation, which took place in 2000, permitted the
Community industry to limit its losses. In this respect, it
was a strategic decision taken to thwart the effect of the
dumped practices. In addition, it is likely that this reloca-

In this respect, the likely effect on users' cost of produc-
tion of the anti-dumping measures imposed on Indo-
nesia was assessed. In this respect an estimation was
undertaken of what would be the impact of the meas-
ures proposed against Indonesia on a user having as sole
source of supply imports from Indonesia (worst case
scenario). On this basis the impact of the measures
proposed against Indonesia would be evaluated as an
increase in the cost of production of around 4 %. As
already explained,
is an entirely hypothetical
scenario since no user cooperated which only sourced
the product concerned from Indonesia.

this

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(139)

In view of the above findings, it was concluded that the
impact of anti-dumping duties on users would be negli-
gible. In more general terms, given the lack of coopera-
tion from other users, it is likely that the cost impact on
all other users would be similarly negligible.

import from India to the detriment of the PRC. It seems
therefore difficult to establish a link between the move
of the ring binder production of that user outside the
Community and the imposition of anti-dumping duties
on imports from the PRC and Malaysia. Moreover, as
already shown in recital 139 anti-dumping duties have a
negligible impact on the users' cost of production.

(140) The cooperating user claimed that, as happened in the
past three years, when it had to relocate part of its
production outside the Community and to close three
plants following the imposition of anti-dumping meas-
ures on RBMs originating in the PRC and Malaysia,
anti-dumping measures on imports originating in Indo-
nesia, by increasing the prices of one of the items of its
cost of production, could entail a further move of its
ring binder production outside of the Community and/
or closure of the relevant plants. This would risk to
affect its whole activity, i.e. also the manufacturing of
other products, whose plants would be delocalised as
well, with significant job losses in the Community.

it

is fundamental

(141) As a general remark, it should be noted that the risk of
relocation of the downstream industry owing to the
anti-dumping measures is tempered by the fact that part
of the binder market is business to business oriented and
that
that users are close to their
customers, have a flexible production ready to meet the
demand and a sound knowledge of the market. The
the main criteria
investigation showed in fact
customers of ring binders producers take into account in
their choice are price, quality and service, as well as
speedy delivery. In addition, as already explained in reci-
tals 137 to 138,
the anti-
the financial
dumping measures on the downstream industry was
found negligible. Finally, the fact that only one binder
producer fully cooperated with the investigation, tends
to confirm the conclusion that anti-dumping measures
will not have a decisive impact on users.

impact of

that

(142)

In addition, certain interested parties pointed out that
the relocation of several users that have occurred in the
past years was due to the high cost of production in the
Community. This confirms that any relocation should be
seen in the wider context of the overall cost structure in
which, as already explained, anti-dumping measures
represent a negligible portion.

(144)

It was found that the relocation described above should
rather be seen as the consequence of
the external-
oriented strategy of this user which acquired a number
of companies during the last years. This strategy eventu-
ally led to a consolidation and a restructuring of the
different entities of the group, certain amongst which
have been closed. The relocation of some plants outside
the Community should be seen as part of this strategy,
which aims to strengthen the position of that user over
the Community market and to develop its presence in
Eastern Europe.

(145) Before the above background, and in view of the negli-
gible impact the level of the duties imposed is likely to
have on the user concerned, it appears unlikely that the
anti-dumping measures against
Indonesia would, as
such, entail a further move of its ring binder production
outside of the Community.

(146) As regards the closure of plants and the risk of further
closures linked to the imposition of anti-dumping meas-
ures against Indonesia, it was found that the cooperating
user closed three plants in the past three years, when
measures on the PRC and Malaysia were in force. In
view of the negligible impact the measures would have
on the cost of production and on the financial situation
of the user in question, as explained under recital 144, it
is unlikely that the measures on the PRC and Malaysia
led, on their own, to the closure of these plants and that
the anti-dumping measures on imports from Indonesia
would cause a closure of other plants.

(b) Consumers

(147)

It should be mentioned that the product concerned is
not sold at retail level and that no consumers' associa-
tion made themselves known and participated in this
investigation.

(143) As regards the specific situation of the cooperating user,
the investigation showed that, although this user relo-
cated part of
its production outside the Community
between 1998 and the IP, i.e. after the imposition of
anti-dumping measures against the PRC and Malaysia,
this user in fact changed its source of supply after the
imposition of anti-dumping measures against the PRC
and Malaysia, purchasing RBMs from the cooperating
importers which in turn, as from 1998, started to

(148) The cooperating user also argued that anti-dumping
measures would increase the price paid by the final
customer of ring binders, i.e. consumers. However, in
view of the above explanation regarding the impact on
ring binder producers, any increase in the final sales
price to consumers of ring binders is likely not to be
significant.

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(149)

suffer be passed on in full until

In addition, the investigation showed that the cooper-
ating user sells its products mainly to distributors. In the
worst scenario, should the cost increase that the users
might
the final
consumer,
this would entail a price increase of a
maximum of 4 % for the final consumer. However, this
is unlikely to occur since general experience shows that
each step in the distribution chain is likely to support
part of its costs increase in order to stay competitive on
its market.

(150) On the basis of the above, the impact on users of RBMs
and consumers of ring binders was considered not to
constitute a compelling reason against the imposition of
anti-dumping measures, as the possible negative effect is
unlikely to offset the positive effect on the Community
industry of anti-dumping measures against
injurious
dumping.

(c) Impact on competition

(151)

It was also examined whether the imposition of anti-
dumping measures on imports from Indonesia could
lead to a situation where the Community industry could
benefit from a dominant position on the Community
market, in particular in view of the anti-dumping meas-
ures imposed in 1997 on imports from the PRC and
the
Malaysia and in view of
Community industry.

the restructuring of

(152) First of all, it is recalled that the Community industry
held, during the IP, a market share which only ranged
between 10 % and 15 %. The
two complainant
Community producers taken together would have held,
during the IP, a market share ranging between 32 % and
37 %. Even in the event of including Koloman's imports
in the market share held by both complainants together,
this market share would have ranged from 47 % to 52 %
of the Community market in the IP. In addition, it is
recalled that, although the Commission initiated a
review of the measures against the PRC, this review does
not concern imports from Malaysia. Also RBMs can still
be imported from India. Therefore it is considered very
unlikely that the imposition of anti-dumping measures
against Indonesia would lead to any negative effect on
competition of
industry on the
the Community
Community market. Finally, it is recalled that the impo-
sition of anti-dumping measures on imports from the
PRC and Malaysia likewise did not lead to any kind of
dominance for the Community industry, even if no
other sources of supply but these two countries existed
at the time.

users that the Community industry cease its production
of the product concerned. Indeed, on the one hand, the
sole user that cooperated purchased between 20 % and
50 % of
from the Community industry
between 1998 and the IP. On the other hand, should the
Community industry definitely cease the production of
RBMs, users would be significantly dependent on
imports.

its RBMs

this country recently expired. Moreover,

(154) Should measures be imposed, several alternative sources
of supply still exist. RBMs are being or can be purchased
from the Community industry, the other Community
producers, India and Hong Kong. In addition, imports
from Malaysia are likely to recommence since measures
the
against
investigation has shown that the imposition of anti-
dumping measures on imports from the PRC and
Malaysia did not entail any shortage of the product
concerned. Finally, it is recalled that the impact of the
measures on users was found to be negligible, and that
the product concerned will therefore quite likely still be
imported from Indonesia.

5. Conclusion on Community interest

(155) Given the above reasons, it is concluded that there are
no compelling reasons against the imposition of anti-
dumping duties.

G. DEFINITIVE MEASURES

1. Injury elimination level

(156)

(157)

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

In accordance with Article 9(4) of the basic Regulation,
the Commission examined what level of duty would be
adequate to remove the injury to the Community
industry caused by dumping. For that purpose, it was
considered that a price level based on the Community
producers' cost of production together with a reasonable
profit margin should be calculated.

(158) Here, it was found that a profit margin of 5 % of turn-
over could be regarded as a reasonable minimum, taking
into account the need for long-term investment and,
more particularly,
the profit margin which the
Community industry could have been expected to obtain
in the absence of injurious dumping.

(153) On the other hand, as already explained in recital 130, it
is likely that without measures to correct the effects of
dumped imports, Community production will, within a
short period of time, no longer be viable and therefore
cease. It would certainly not be in the interest of the

(159) Given the lack of cooperation, it was considered that the
injury elimination level should cover
the difference
between this calculated price and the CIF prices adjusted
as explained in recital 60.

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L 150/15

(160) The injury elimination level found was 42,30 % for imports from Indonesia.

2. Definitive anti-dumping measures

(161)

In the light of the foregoing and in accordance with Article 9(4) of the basic Regulation,
it is
considered that definitive anti-dumping duties should normally be imposed at the level of the injury
margin for Indonesia.

(162) However, with regard to the parallel anti-subsidy proceeding, in accordance with Article 24(1) of
Council Regulation (EC) No 2026/97 (1) (the basic anti-subsidy Regulation) and Article 14(1) of the
basic Regulation, no product shall be subject to both anti-dumping and countervailing duties for the
purposes of dealing with one and the same situation arising from dumping and from export
subsidisation. In the present investigation, it was found that anti-dumping duties should be imposed
on imports of the product concerned originating in Indonesia and therefore,
it is necessary to
determine whether, and to what extent, the subsidy and the dumping margins arise from the same
situation.

(163)

In the parallel anti-subsidy proceeding, with regard to Indonesia, countervailing duties corresponding
to the amount of subsidies, which were found to be 10 %, were imposed in accordance with Article
15(1) of the basic anti-subsidy Regulation. Some of those investigated in Indonesia constituted
export subsidies within the meaning of Article 3(4)(a) of the basic anti-subsidy Regulation. As such,
these subsidies could only affect the export price of the Indonesian exporting producers, thus leading
to increased margin of dumping. In other words, the dumping margin established for the Indonesian
producers are partly due to the existence of export subsidies. However, it is noted that the injury
margin was considerably lower than the dumping margin even if the latter was adjusted to take
account of the export subsidy. In these circumstances it is not considered appropriate that both
countervailing and anti-dumping duties could be imposed to the full extent of the relevant subsidy
and dumping margins established. Therefore, the combined duty level should not exceed the injury
margin. Given that a part of the injury margin amounting to 42,3 %, will be covered by the
imposition of the countervailing duty which amounts to 10 %, the anti-dumping duty should not
exceed the remaining injury margin of 32,3 %.

Company

Export subsidy
margin

Total subsidy
margin

Injury margin

Countervailing
duty

Anti-dumping
duty

Total duty rate

Indonesia:
all companies

5 %

10 %

42,3 %

10 %

32,3 %

42,3 %

(164)

It has been argued that Article 14(1) of the basic Regulation would have been violated since no
product shall be subject to both anti-dumping and countervailing duties for the purpose of dealing
with one and the same situation arising from dumping or from export subsidisation. It is however
recalled that as explained in recitals 162 and 163 the duties have been adjusted in conformity with
Article 14(1) of the basic Regulation. The argument was therefore rejected.

(165)

In order to meet the deadline set out in Article 6(9) of the basic Regulation, the present Regulation
should enter into force on the day of its publication,

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on imports of certain ring binder mechanisms,
falling within CN code ex 8305 10 00 (TARIC codes 8305 10 00*10 and 8305 10 00*20) and originating
in Indonesia. For the purpose of this Regulation, ring binder mechanisms shall consist of two rectangular
steel sheets or wires with at least four half rings made of steel wire fixed on it and which are kept together
by a steel cover. They can be opened either by pulling the half rings or with a small steel-made trigger
mechanism fixed to the ring binder mechanism.

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

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Official Journal of the European Communities

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The rate of the definitive anti-dumping duty applicable to the net, free-at-Community-frontier price,

2.
before duty, shall be as follows for products originating in:

Country

Indonesia

Definitive duty
(%)

32,3

3.

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

The proceeding concerning imports of certain ring binder mechanisms originating in India shall be

4.
terminated.

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

Article 2

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

Done at Luxembourg, 4 June 2002.

For the Council

The President

R. DE RATO Y FIGAREDO