Council Regulation (EC) No 1531/2002 of 14 August 2002 imposing a definitive anti-dumping duty on imports of colour television receivers originating in the People's Republic of China, the Republic of Korea, Malaysia and Thailand and terminating the proceeding regarding imports of colour television receivers originating in Singapore
Date: 2002-08-14
Institutions: Council of the European Union
Subjects: China, South Korea, South-East Asia, anti-dumping duty, import, originating product, television equipment

29.8.2002

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1531/2002

of 14 August 2002

imposing a definitive anti-dumping duty on imports of colour television receivers originating in
the People's Republic of China, the Republic of Korea, Malaysia and Thailand and terminating the
proceeding regarding imports of colour television receivers originating in Singapore

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1), and in
particular Articles 9, 11(2) and 11(3) thereof,

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

(4)

Whereas:

that there were no longer grounds for differentiating
between colour television receivers according to their
screen size, since anti-dumping measures were already in
force in respect of SCTVs originating in China and
Korea, the scope of the investigation and the definitive
anti-dumping duties imposed by Regulation (EC) No
710/95 as regards China and Korea were limited to
colour televisions with a diagonal screen measurement
exceeding 42 cm,

large-screen CTVs.

i.e.

In November 1998, the Council by Regulation (EC) No
2584/98 (6) amended Regulation (EC) No 710/95 as far
as the duties applicable to CTVs originating in China and
Korea were concerned in order to take account of the
findings in Regulation (EC) No 710/95 that there were
for differentiating between televisions
no grounds
according to their screen size.

(1)

(2)

(3)

A. PROCEDURE

1. Previous investigations and existing measures

In April 1990 the Council, by Regulation (EEC) No
1048/90 (2), imposed definitive anti-dumping duties on
imports of small-screen colour television receivers, i.e.
those with a diagonal screen size of more than 15,5 cm
but not exceeding 42 cm (‘SCTVs’), originating in the
Republic of Korea (Korea).

Subsequently, in July 1991, the Council, by Regulation
(EEC) No 2093/91 (3), imposed definitive anti-dumping
duties on imports of SCTVs originating, inter alia, in the
People's Republic of China (China).

imports of

the Commission by Decision 95/
In April 1995,
92/EC (4)
terminated the anti-dumping proceeding in
respect of
(CTVs) originating in Turkey,
which had been initiated in November 1992. At the
same time, the Council, by Regulation (EC) No 710/
anti-dumping duties on
95 (5),
imports of CTVs with a diagonal screen size exceeding
15,5 cm, originating in Malaysia, China, Korea, Singa-
pore and Thailand. Although this proceeding established

imposed definitive

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regula-

tion (EC) No 2238/2000 (OJ L 257, 11.10.2000, p. 2).

(2) OJ L 107, 27.4.1990, p. 56. Regulation as amended by Regula-

tion (EEC) No 2900/91, (OJ L 275, 2.10.1991, p. 24).

(3) OJ L 195, 18.7.1991, p. 1.
(4) OJ L 73, 1.4.1995, p. 84.
(5) OJ L 73, 1.4.1995, p. 3.

2. Expiry and interim review investigations

(5)

(6)

impending
Following the publication of a notice of
expiry (7) of
the anti-dumping measures in force on
imports of CTVs originating in China, Korea, Malaysia,
Singapore and Thailand, the Producers of European Tele-
visions in Cooperation (Poetic), requested an expiry
review of the measures in force pursuant to Article 11(2)
of Regulation (EC) No 384/96 (the basic Regulation).

The request was based on the grounds that the expiry of
the measures would be likely to result in the continua-
tion or
recurrence of dumping and injury to the
Community industry. The request also contained infor-
mation which showed that the various markets involved
itself, had undergone significant
and the product,
changes over
few years. This information,
together with the allegations on dumping and injury, led
the Commission to conclude that an interim review of
both dumping and injury should also be carried out
pursuant to Article 11(3) of the basic Regulation.

the last

(6) OJ L 324, 2.12.1998, p. 1.
(7) OJ C 278, 1.10.1999, p. 2.

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(7)

(8)

(9)

Having determined, after consultation of the Advisory
Committee, that sufficient evidence existed for the initia-
tion of an expiry and an interim review pursuant to
Articles 11(2) and 11(3) of the basic Regulation, the
Commission published a notice of initiation in the Offi-
and
of
cial
commenced the investigation.

European Communities (1)

Journal

the

3. Initiation

of

an

anti-dumping
concerning Turkey

proceeding

On 15 July 2000, the Commission announced by a
notice (Notice of
Initiation) published in the Official
Journal of the European Communities (2), the initiation of an
anti-dumping proceeding concerning imports of CTVs
originating in or exported from Turkey.

The proceeding was initiated as a result of a complaint
lodged in June 2000 by Poetic, acting on behalf of
Community producers representing a major proportion,
in this case more than 30 %, of the total Community
production of CTVs. The complaint contained sufficient
injury resulting
evidence of dumping and of material
therefrom to justify the initiation of an anti-dumping
proceeding.

4. Termination of

the anti-dumping proceeding

concerning CTVs originating in Turkey

initiation of the investigations. 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 notices of initiation.

(13) A number of exporting producers in the countries
concerned, as well as Community producers made their
view known in writing. All parties who so requested
within the above time limits and who demonstrated that
there were particular reasons why they should be heard
were granted the opportunity to be heard orally.

(14)

In view of the apparently large number of exporting
producers of the product concerned in the countries
subject to the review investigations, known from the
request and from previous investigations, the application
of sampling techniques for the investigation of dumping
was envisaged in indents 5(a) and (b) of the Notice of
Initiation.

(15) However, only a limited number of exporting producers
from Korea, Singapore, China and Thailand made them-
selves known and provided the information requested in
the Notice of Initiation. Therefore, the use of sampling
techniques was not considered necessary for any of the
countries concerned.

(10) Given the complexity of the specific rules of origin
applicable to imports of CTVs, the examination of the
origin of the CTVs exported from Turkey could not be
completed within the deadline stipulated in Article 7 of
the basic Regulation. Therefore, the dumping, injury and
Community interest aspects of the case could not be
adequately examined and consequently no provisional
anti-dumping measures could be considered.

(16)

(11)

The investigation was therefore continued to reach
definitive findings. Given the intention to obtain a global
view of the impact of the imports from all the countries
concerned on the Community industry, the data gath-
ered in the investigation concerning Turkey was exam-
ined in conjunction with that gathered in the framework
of
the expiry and the interim reviews of measures
against China, Korea, Malaysia, Singapore and Thailand.
However, given the findings on origin which are recalled
in recitals 40 to 44, the Commission terminated the
proceeding as far as it concerned CTVs originating in
Turkey by Decision 2001/725/EC (3).

5. Parties concerned by the investigations

(12)

The Commission officially informed the complainant
Community producers, other known Community produ-
cers, exporting producers, importers and their associa-
tions, the European Office of Consumers (BEUC) and the
the
representatives of

the exporting countries about

(1) OJ C 94, 1.4.2000, p. 2.
(2) OJ C 202, 15.7.2000, p. 4.
(3) OJ L 272, 13.10.2001, p. 37.

to all parties
The Commission sent questionnaires
known to be concerned and to all other companies who
made themselves known within the deadlines set in the
Notices of Initiation. Replies were received from five
Community producers, from three unrelated importers,
from five Turkish companies and their related importers
in the Community, from one Thai exporting producer
and its related importers in the Community and from
eight Chinese companies. However, no Korean, Malay-
sian and Singaporean exporting producer provided a
meaningful reply to the questionnaire and, therefore, all
companies known from the sampling exercise in these
countries were considered as non-cooperators. The
Commission informed them about the consequences of
this non-cooperation.

(17)

The Commission sought and verified all information it
deemed necessary for the purpose of a determination of
dumping, injury and Community interest as well as to
determine whether there is a likelihood of a continua-
tion or recurrence of dumping and injury and whether
maintaining the measures would not be against
the
Community interest. Verification visits were carried out
at the premises of the following companies:

(a) Community producers

Tecnimagen SA — Barcelona, Spain

Grundig AG — Nuremberg, Germany

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Philips Consumer Electronics — Eindhoven, The
Netherlands

Industrie Formenti Italia Spa — Lissone, Italy

Seleco Formenti Spa — Pordenone, Italy.

(b) Exporters/producers and related sales companies

tions covered the period from 1995 up to 30 June 2000
(period considered), to take account of the existence of
two differing investigation periods for dumping.

6. Market economy treatment

('MET') and indi-

vidual treatment

T u r k e y

(19)

Profilo Telra Elektronik Sanayi ve Ticaret AS,
(including the related sales companies (i)
Istanbul
PRO-EKS Dis Ticaret AS,
(ii) Savunma
(iii) Elektrotem Elektronik
Gerecleri AS,
Aletler Limited, Istanbul)

Istanbul,

Istanbul,

Beko Elektronik AS, Istanbul (including the related
sales company Ram Dis Ticaret, Istanbul)

Vestel Elektronik Sanayi ve Ticaret AS,
Istanbul
(including the related sales companies: (i) Vestel Dis
Ticaret AS, Istanbul, (ii) Vestel Dis Ticaret AS Ege
Serbest Bolge SB, Izmir, (iii) Vestel Bilisim Teknoloji-
leri Sanayi ve Ticaret AS, Istanbul, iv) Vestel Komu-
nikasyon Sanayi ve Ticaret AS, Izmir)

Izmir Elektronik Sanayi ve Ticaret AS, Izmir

T h a i l a n d

Thomson Television Thailand, Pathumthani, Thai-
land (including the related sales company European
Audio Products (HK) Ltd, Shatin, New Territory,
Hong Kong)

(c) Related importers in the Community

— Importers related to the Turkish exporters

Beko (UK) Ltd, Watford, United Kingdom

Beko Electronics Espana SL, Barcelona, Spain

Pursuant to Article 2(7)(b) of the basic Regulation, one
Chinese company, Xiamen Overseas Chinese Electronic
Co., Ltd (the applicant company), requested MET and
individual treatment and was required to complete a
information
claim form detailing all
it
required. After consulting the Advisory Committee,
was decided not to grant MET to the applicant company
on the basis that the applicant company did not meet all
of the criteria set in Article 2(7)(c) of the basic Regula-
tion.

relevant

the

(20) After this decision was taken,

Initially,

it was found that the
applicant company had not actually exported any CTVs
to the Community during the review IP.
it
reported in its claim form and in its questionnaire
response certain CTVs exports
to the Community.
However, at a subsequent stage of the investigation it
was found that these CTVs were never released into free
circulation in the Community and that their final desti-
nation was a third country. Thus, in the absence of any
CTVs exports to the Community during the review IP,
the
applicant
company became irrelevant.

request of

individual

treatment

the

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

Vestel Holland BV, Rotterdam, Netherlands

(a) Product description

Vestel Iberia, Madrid, Spain

— Importers related to Thomson Television Thai-

land

Thomson Multimedia Marketing France SA,
Boulogne, France

Thomson Multimedia Sales Spain, SA, Madrid,
Spain

Thomson Multimedia Sales UK Ltd, West
Malling, Kent, United Kingdom

(21)

(22)

(d) Unrelated importers in the Community

Alba plc — Barking, United Kingdom.

(18)

The investigation of dumping in the review investiga-
tions covered the period from 1 January 1999 to 31
December 1999 (review IP). The
investigation of
dumping covered the period from 1 July 1999 to 30
June 2000 (IP) as far as the anti-dumping proceeding
against Turkey is concerned. The examination of trends
in the context of the injury analysis for both investiga-

The product concerned is CTVs with a diagonal screen
size of more than 15,5 cm, whether or not combined in
the same housing with a radio broadcast receiver and/or
clock. This product is currently classifiable within CN
codes
8528 12 56,
8528 12 58, ex 8528 12 62 and 8528 12 66.

ex 8528 12 52,

8528 12 54,

Regulation (EC) No 710/95 excluded from the definition
of the product concerned D2MAC sets and high defini-
tion televisions (HDTVs) since these products, which
introduced qualitative technical changes, were at that
time still in the development stage and were not avail-
able to the public except in very limited circumstances.
Regulation (EC) No 2584/98 confirmed that these prod-
ucts should not be included in the scope of the product
definition, since the investigation had not brought to
light any new factual evidence, which would justify their
inclusion. The same was the case in the present invest-
igation, in which no new evidence justifying their inclu-
sion was submitted.
is therefore concluded that
D2MAC sets and high definition televisions are not
covered by the present investigations.

It

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(b) Arguments of the parties

with an internet connection should also be covered by
the investigation.

(23) One importer requested the exclusion from the scope of
the investigation of the so-called internet-CTVs which
integrate an internet modem and computer operating
system allowing access to the internet via the TV screen
and controlled by a
control unit which
remote
comprises a full keyboard. In the internet-CTV all the
necessary modem circuitry is integrated into the body of
the television set, instead of having a separate set top
box.

(29)

The applicant also questioned the conclusions reached
by the importer
regarding the different consumer
perception arguing that the internet-CTVs had only been
recently launched. It furthermore argued that the high
percentage of costs represented by the Internet was due
to the recent introduction of internet-CTV. It provided
evidence showing that at the time of the introduction of
the teletext facility in CTVs, the costs of teletext was
substantially higher than at present.

(24)

(25)

(26)

(27)

(28)

The importer argued that the exclusion was warranted in
view of the differences in basic physical and technical
characteristics between CTVs and internet-CTVs and in
the different consumer perceptions of both
view of
products.

(30)

It contested the example of the VCRs arguing that in a
VCR/CTV combination the VCR has an independent
function, whereas the internet function does not work
without the CTV, but is rather an addition to the CTV.

consisted in the

The differences in the basic physical characteristics of
internet-CTVs
internet
components in the CTV which represent around 60 % of
the total costs of the internet-CTV and a keyboard inte-
grated in the remote control.

additional

Regarding the basic technical characteristics
it was
argued that the internet CTV sends and receives data not
via broadcasting technology but via the telephone
system using the modem. Furthermore, it employs tech-
nology which is different from the basic technology in
CTVs; it incorporates a system for secure access to the
internet, secure socket layer (SSL), a browser technology
for the display of internet graphics on standard resolu-
tion CTVs and a modem that translates digital signals
into analogue ones that can travel over a standard phone
line.

It was alleged that the different consumer perception of
the product compared to standard CTVs was proven by
the fact that internet-CTV is sold at retail level at more
it was
than twice the price of a CTV. Furthermore,
argued that
the integrated internet circuit elements
imparts an element to a standard CTV which is a distinct
additional quality. In support of this it quotes the case
on video cassette recorders from Japan and Korea (VCRs)
where it was concluded that in cases where a VCR is
combined in one housing with a CTV, this combination
has to be regarded as a different product.

The applicant claimed that such exclusion was not
warranted. It disputed the allegation that internet-CTVs
had different basic physical and technical characteristics
and argued that the internet part was comparable to the
teletext in a CTV. Internet should be considered as a
more modern form of teletext and therefore an addi-
tional
than a new product
without the basic characteristics of CTVs. Since CTVs
with teletext were covered by the investigation, CTVs

feature of CTVs rather

(c) Findings of the investigation

(31)

(32)

The investigation showed that an internet-CTV is a
product which combines in the same housing two tech-
nologies producing two sufficiently distinct end uses: on
the one hand it allows the sending and receiving of
electronic mail and accessing the world wide web while
on the other it allows viewing TV programmes. Given
this additional function, the CTV does not necessarily
determine the character of the entire product but it is
rather the internet function which takes predominance
over the CTV. Indeed, such a combination contains a
specific element which imparts an additional function to
the internet CTV and allows it
to be considered as
different for the purpose of the present anti-dumping
investigation.

The above conclusions have been reached on the basis
of the information gathered in the course of the invest-
igation and relating to the IP. Given the early stage of
development of this product and the fact that they were
only available to the public in small quantities, it cannot
be excluded that the conclusions reached in the present
investigations would need to be revised in light of
in the future.
further developments on this product
Thus, should a review of
the measures in place be
carried out in the future, the situation of these products
would have to be re-examined, on the basis of the
information gathered in that investigation, in order to
determine whether such exclusion would still be justi-
fied.

(33)

it was found that despite differences in
Furthermore,
screen sizes, in sound system, in broadcast system, in
screen type and format and in picture frequence, all
CTVs shared the same basic physical and technical char-
acteristics and the same use and form therefore one
product.

(34)

(35)

(36)

(37)

(38)

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2. Like product

In the course of the investigations,
it was established
that CTVs originating in or exported from the countries
concerned and destined for the Community, share the
same basic physical and technical characteristics and
end-uses as CTVs manufactured and sold by the
Community industry on the Community market. It was
also found that there were no differences between the
CTVs produced and sold in the countries concerned,
including Turkey which was used as an analogue
country, and those exported to the Community, which
were both identical to the CTVs manufactured and sold
by the Community industry on the Community market.
These products are therefore alike within the meaning of
Article 1(4) of the basic Regulation.

poration of parts originating in the country of assembly
represents at least 45 % of the ex-works price of the
CTV. When the 45 % rule is not met, the CTV originates
in the country of origin of parts whose ex-works price
represents more than 35 % of the ex-works price of the
CTV.

(39)

It should be stressed that the findings set out below were
established only for the purposes of the present anti-
dumping investigation and more particularly for the
purposes of determining the likelihood of continuation
or recurrence of injurious dumping.

2. Exports from Turkey

C. ORIGIN

1. General

(40)

frequently incorporate components and parts
CTVs
originating in countries other than the country of manu-
facture or assembly of the finished product, with the
result that CTVs may be considered as originating in a
country other than the country of manufacture or
in accordance with the Community's
assembly. Thus,
consistent practice and pursuant to Article 1(3) of the
basic Regulation, the examination of the origin of the
CTVs exported from the countries concerned was part of
the anti-dumping investigations.

The issue of origin had already been examined in detail
in Council Regulation (EC) No 710/95, where the
application of the rules of origin led to a redistribution
of the import volumes of CTVs between the different
countries to reflect the origin established during the
investigation.

For the purposes of the anti-dumping legislation, the
origin of
the products concerned is determined in
accordance with the non-preferential rules of origin, as
provided by Article 22 of Council Regulation (EEC) No
2913/92 of 12 October 1992 establishing
the
Community Customs Code (1). This is also the case
regarding Turkey, where Decision No 1/95 of the EC-
Turkey Association Council of 22 December 1995 on
implementing the final phase of the Customs Union (2)
has not established any derogation in this respect.

In accordance with Article 39 and Annex 11 of
Commission Regulation (EEC) No 2454/93 of 2 July
1993 laying down provisions for the implementation of
Council Regulation (EEC) No 2913/92 establishing the
Community Customs Code (3), specific non-preferential
rules of origin apply for CTVs. According to these rules,
a CTV originates in the country where the added value
of the assembly operations, and, if applicable, the incor-

(1) OJ L 302, 19.10.1992, p. 1. Regulation as last amended by
Regulation (EC) No 2700/2000 of the European Parliament and
of the Council (OJ L 311, 12.12.2000, p. 17).

(2) OJ L 35, 13.2.1996, p. 1.
(3) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by
Regulation (EC) No 444/2002 (OJ L 68, 12.3.2002, p. 11).

is

recalled that

the Commission terminated the
It
proceeding concerning CTVs originating in Turkey by
Decision 2001/725/EC (4). The findings in the frame-
work of the latter proceeding have shown that all CTVs
exported from Turkey to the Community during the IP
were declared as being of Turkish origin. (They were
accompanied by a Single Administrative Document indi-
cating that the CTVs originated in Turkey). They were
also accompanied by an ATR certificate indicating that
they were in free circulation in Turkey. However, in the
course of that investigation all Turkish companies stated
that their CTVs were not of Turkish origin.

(41) When applying the specific non-preferential origin rules,
it was established that the origin of all CTVs exported
from Turkey to the Community during the IP was other
than Turkish. In particular,
it was found that for the
exports of the investigated companies which correspond
to all exports of CTVs from Turkey to the Community
during the IP, the 45 % added value rule was not met.

(42)

Since the 45 % added value rule was not met, the origin
had to be determined on the basis of the 35 % value rule
of the non-originating parts/materials. In these circum-
stances, the origin of the cathode-ray colour television
picture tube (CPT) virtually determined the origin of the
CTVs, since the ex-works price of the CPT represented,
in almost all cases, at least 35 % of the ex-works price of
the CTV. It should be noted that there is no production
of CPTs
therefore, all CPTs were
imported.

in Turkey and,

(43) On the basis of the 35 % value rule of the non-origin-
ating parts/materials, exports to the Community were
found to have their origin in certain exporting countries
subjected to the review investigations, the Community
or other third countries not subject to any investigation.

(44) As for the CTVs exported from Turkey and originating
in countries for which the anti-dumping measures in
force are the subject of the present review (i.e. China,
Korea and Malaysia),
the quantities exported to the
Community from Turkey have been considered as
originating in those countries.

(4) OJ L 272, 13.10.2001, p. 37.

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3. Exports from Thailand

(a) Analogue country

(45)

The investigation showed that for all exports by the
cooperating exporting producer
in Thailand to the
Community during the review IP, the 45 % added value
rule was not met. Therefore, the origin had to be deter-
mined on the basis of the 35 % value rule of the non-
originating parts/materials. In this respect,
it was also
found that the origin of the CTVs would virtually be
determined by the origin of the CPTs, which repre-
sented, in all but one case, at least 35 % of the ex-works
price of the CTVs. The cooperating exporting producer
did not use CPTs of Thai origin but of Korean and
Malaysian origin. Furthermore, the company imported a
significant quantity of the other materials input to the
CTVs production. Accordingly, it was concluded that the
CTVs exported from Thailand to the Community during
the review IP by the cooperating exporting producer
were not of Thai origin but they were found to originate
in either Korea or Malaysia.

(46) On the basis of information available from Eurostat, it
was established that all exports of CTVs from Thailand
to the Community were made by the sole cooperating
exporting producer in this country. In view of the above
findings regarding the origin, all CTVs exported from
Thailand to the Community were treated as originating
in Korea and Malaysia for the purpose of the review
investigations.

4. Exports from China, Korea, Malaysia and Singa-

pore

(47)

It should be noted that no cooperation was obtained
from any exporting producers in Korea, Malaysia or
Singapore. Furthermore, none of the Chinese companies
reported any exports of CTVs to the Community during
the review IP. Thus, it was considered that CTVs origin-
ating in these four countries were those reported in the
Eurostat imports statistics as well as those exported from
Turkey and Thailand which were found to be of Korean,
Malaysian or Chinese origin.

(49)

Since the China is a non market economy country, an
analogue market economy third country had to be
selected for the establishment of normal value in accord-
ance with Article 2(7) of the basic Regulation. For this
purpose, the Notice of Initiation suggested Singapore,
which was also the proposal made in the review request.
Within the time limit specified in the relevant notice of
initiation, certain Chinese companies objected to this
approach and requested that the lowest normal value
found in the other countries subject to the investigation
be used. One Chinese company suggested the use of
Malaysia, Thailand or Korea.

(50) However, producers in Korea, Singapore and Malaysia
did not cooperate with the investigation. Regarding
Thailand, the only company who cooperated with the
investigation had no domestic sales of CTVs and, there-
fore, normal value could not be established for this
country. Consequently, it was examined whether Turkey
could be used as an analogue country for establishing
normal value. Turkey was also proposed as an altern-
ative option to Singapore in the review request.

(51)

(52)

Turkey was considered as a reasonable choice of
analogue country as it is a competitive market and it has
significant production and domestic consumption. There
are several domestic producers leading to strong internal
competition and Turkish sales of the product concerned
are significant. Three Turkish producers which cooper-
ated in the framework of
the investigation against
Turkey, provided details concerning their domestic sales
and cost of production.

In these circumstances, the Commission decided to use
Turkey as an analogue country. Since the IP of the
investigation against imports of the product concerned
originating in Turkey overlapped with the review IP for
six months, normal value was established only for the
common period of the two investigations,
i.e. 1 July
1999 to 31 December 1999 (second half of the review
IP), and dumping calculations were made for this period.

D. DUMPING

(b) Normal value

1. People's Republic of China

(48) No Chinese producer with exports of CTVs to the
Community during the review IP cooperated in the
Turkish
investigation. However,
company, Vestel Elektronik Sanayi ve Ticaret AS, was
found to be exporting significant quantities of CTVs of
Chinese origin. It was, therefore, considered appropriate
to calculate an individual dumping margin for this
company.

cooperating

one

(53) Due to the high inflation rate in Turkey during the
second half of the review IP, normal value was estab-
lished for the shortest possible meaningful period, i.e. on
a monthly basis,
in order to eliminate the effects of
inflation.

(54) Domestic sales were considered to be sufficiently repres-
entative in comparison with the export sales. In addi-
tion, the Commission services 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.

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(55)

This was done by establishing the proportion of
domestic sales
to independent customers, of each
exported product model, sold in the ordinary course of
trade on the domestic market during the second half of
the review IP. For those product models where more
than 80 % by volume was sold at a profit on the
domestic market, and where the weighted average sales
price was equal to or higher than the weighted average
production cost, normal value, by product model, was
calculated as the weighted average of all domestic sales
prices of the type in question. For those product models
where at least 10 %, but no more than 80 %, by volume,
was sold at a profit on the domestic market, normal
value, by product model, was calculated as the weighted
average of the profitable domestic sales prices only, of
the model

in question.

transport,

loading
taxes, rebates,
and ancillary costs, after sales costs, commissions and
credit.

insurance, handling,

(61) A number of adjustments

for differences

in other
factors, such as bad debt costs, finance costs due to
differences in inventory levels, finance costs of import
taxes, brand value allowance,
taxes and of
advertising costs and SG&A of related domestic distribu-
these claims were not
tors were claimed. However,
accepted since it was not demonstrated that
they
affected price comparability.

indirect

(56) Given that domestic sales of the like product by the
Turkish producers during the first half of the IP were
found to be made in sufficient quantities and in the
ordinary course of trade, normal value was based on the
actual prices paid or payable for the corresponding
product model, by independent customers in Turkey
during the second half of the review IP.

(62)

VAT related adjustments
such as VAT interest on
imports destined for domestic production and VAT
financing of domestic sales, were claimed.
In this
respect, companies have the obligation to collect the tax
on behalf of the State and to reimburse to it the amount
due. VAT transactions do not affect the financial results
(profits or losses) of companies. Instead, the VAT trans-
actions affect either the current assets or the current
liabilities as set out in their accounts. Moreover, and in
relation to any financial costs associated to VAT transac-
tions, due to their rolling nature, there is a constant flow
of VAT transactions going both ways (payable and
receivable) that in any given period offset each other.
Thus, any substantial financial cost related to VAT trans-
actions would under normal circumstances occur only at
the early stages of an enterprise's life where its procure-
ment needs are much higher than its sales activity.
Claims related to finance costs for VAT, if any, should
be considered as normal operational overheads and no
adjustments should be made concerning such costs since
they do not affect price comparability.

(63) Notional quantity discounts with the argument that, had
domestic customers purchased the same quantities as the
customers in the export market, then all the domestic
customers would qualify for the maximum rebate given
in the domestic market, were claimed. This claim could
not be accepted since in accordance with Article 2(10)(c)
of
the basic Regulation quantity discounts can be
considered for an adjustment only if they are actually
given for differences in quantities and not on the basis
of notional assumptions.

(64) A level of

trade adjustment

for original equipment
manufacturer (OEM) sales was also claimed. However, it
was found that prices on the domestic market for the
same models of branded and OEM CTVs did not show a
different pattern. Therefore,
this claim could not be
accepted since any such difference did not affect price
comparability.

(65)

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

(c) Export price

(57)

(58)

(59)

The investigation showed that the exports of Chinese
origin CTVs by the Turkish company concerned, via its
related exporters in Turkey, were made both to unre-
lated and to related customers in the Community.

Therefore, for those sales made to unrelated customers
in the Community, 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.

For sales made via related importers, the export price
was constructed on the basis of resale prices to indepen-
dent customers. Adjustments were made for all costs
incurred between importation and resale by that
importer,
including selling, general and administrative
expenses (SG&A), and for the profit margin found in the
investigation to have been attained by unrelated impor-
ters of
in accordance with
Article 2(9) of the basic Regulation.

the product concerned,

(d) Comparison

(60)

For the purposes of a fair comparison between the
normal value and the export price, due allowance in the
form of adjustments was made for differences which
were claimed and demonstrated to affect price compar-
ability in accordance with Article 2(10) of the basic
Regulation. On this basis, adjustments were made where
appropriate with regard to import taxes and indirect

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(e) Dumping margin for

the Turkish company exporting

CTVs of Chinese origin

(66) According to Article 2(11) of the basic Regulation, the
monthly weighted average normal value by product
model was compared with the monthly weighted
average export price by product model. The dumping
margin, expressed as a percentage of the cif price at
Community frontier level duty unpaid for Vestel Elek-
tronik Sanayi ve Ticaret AS, Turkey is 69,2 %.

(67)

(68)

(f) Dumping margin for Chinese producers

For the non-cooperating Chinese exporting producers
and for Chinese producers without exports during the
review IP the level of dumping was determined on the
basis of the facts available.

In this respect, the normal value was established on the
basis of the overall average domestic sales prices for all
models of CTVs of the three cooperating Turkish produ-
cers during the first half of the IP. With regard to the
it was determined on the basis of facts
export price,
available by reference to Eurostat,
the weighted
average cif value, adjusted for ocean freight and insur-
ance, of imports from China for all models of CTVs
during the second half of the review IP. The comparison
of
this normal value and export price showed that
exports from China to the Community were dumped to
the
a significant extent during that period.
dumping margin established was
the
residual dumping margin which was established during
the previous investigation,

In fact,
in excess of

i.e. 44,6 %.

i.e.

(69) Moreover, Poetic gave, in its request for review, prima
facie evidence that significant dumping takes place in
respect of
In fact, the
imports originating in China.
dumping margins alleged in the review request were also
in excess of the residual dumping margin established in
the previous investigation.

(70)

In these circumstances, there was no reason to believe
that the dumping margin for China would be less than
the residual dumping margin established during the
previous investigation. Pursuant to Article 18 of the
basic Regulation, therefore, a dumping margin of 44,6 %
has been attributed to all producers in China.

2. Korea

(71) Given that no exporting producer cooperated in the
investigation, the Commission examined the facts avail-
able to it for determining the level of dumping for
Korea.

(72)

In this respect, the normal value was established on the
basis of the information provided by the Korean produ-
cers for the sampling exercise, i.e. the weighted average
value of the product concerned sold in the domestic
market during the review IP. With regard to the export
price, it was determined on the basis of facts available by
reference to Eurostat, i.e. the weighted average cif value,

imports
adjusted for ocean freight and insurance, of
from Korea for all models of CTVs during the review IP.
The comparison of this normal value and export price
showed that exports from Korea to the Community were
dumped to a significant level during the review IP. In
particular, the dumping margin established was in excess
of the residual dumping margin which was established
during the previous investigation,

i.e. 21,2 %.

(73) Moreover, Poetic gave, in its request for review, prima
facie evidence that significant dumping takes place in
respect of
In fact, the
imports originating in Korea.
dumping margins alleged in the review request were also
in excess of the residual dumping margin established in
the previous investigation.

(74)

(75)

In these circumstances, there is no reason to believe that
the dumping margin for all the non-cooperating compa-
nies would be less than the residual dumping margin
established during the previous investigation. Pursuant
to Article 18 of the basic Regulation, a dumping margin
of 21,2 % was attributed to all non-cooperating produ-
cers in Korea.

For the same reasons, the same dumping margin of
21,2 % was attributed to Thomson Television Thailand,
Thailand and Beko Elektronik AS, Turkey, which were
found to export CTVs of Korean origin during the IP. A
comparison of the overall average export price of these
CTVs with an overall normal value established on the
basis of
information concerning domestic prices of
similar CTVs types sold in Korea, as derived from the
review request, confirmed that significant dumping, in
line with the abovementioned margins, was taking place.

3. Malaysia

(76) Given that no exporting producer cooperated in the
investigation, the Commission examined the facts avail-
able to it for determining the level of dumping for
Malaysia.

(77)

In this respect, and given that no Malaysian exporting
producer provided information for the sampling exer-
cise, it was considered appropriate to use information
regarding Korea to establish normal value for Malaysia.
In this respect, the normal value was established on the
basis of the information provided by the Korean produ-
cers for the sampling exercise, i.e. the weighted average
value of
the product concerned sold in the Korean
market during the review IP. Regarding the export price,
it was determined on the basis of facts available by
reference to Eurostat, i.e. the weighted average cif value,
adjusted for ocean freight and insurance, of
imports
from Malaysia for all models of CTVs during the review
IP. The comparison of this normal value and export
price
from Malaysia to the
Community were dumped to a significant level during
the review IP. In fact, the dumping margin established
was in excess of the residual dumping margin which was
established during the previous investigation, i.e. 25,1 %.

showed that

exports

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Official Journal of the European Communities

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(78)

(79)

In these circumstances, there is no reason to believe that
the dumping margin for all the non-cooperating compa-
nies would be less than the residual dumping margin
established during the previous investigation. Pursuant
to Article 18 of the basic Regulation, a dumping margin
of 25,1 % was therefore attributed to all non-cooper-
ating producers in Malaysia.

For the same reasons, the same dumping margin of
25,1 % was attributed to Thomson Television Thailand,
Thailand and Beko Elektronik AS, Turkey, which were
found to export CTVs of Malaysian origin during the IP.
A comparison of the overall average export price of
these CTVs with an overall normal value established on
the basis of information concerning domestic prices of
similar CTVs types sold in Malaysia, as derived from the
review request, confirmed that significant dumping, in
line with the abovementioned margins, was taking place.

4. Singapore

(80) Given that no exporting producer cooperated in the
investigation, the Commission examined the facts avail-
able for determining the level of dumping for Singapore.
It is noted that the volume of exports to the Community
as derived from Eurostat statistics was very low.

(81)

(82)

The normal value and the export price was established
on the basis of the information concerning domestic
sales and export sales to the Community provided by
one Singaporean producer for the sampling exercise.
The comparison of an overall average normal value with
an overall average export price thus established showed
significant dumping.

In these circumstances, there is no reason to believe that
the dumping margin for all the non-cooperating compa-
nies would be less than the residual dumping margin
established during the previous investigation. Pursuant
therefore, a
to Article 18 of
dumping margin of 24,6 % was attributed to all non-
cooperating producers in Singapore.

the basic Regulation,

5. Thailand

(83) Only one company in Thailand cooperated in the
proceeding, i.e. Thomson Television Thailand. However,
the exports of this company were found not to be of
Thai origin and are dealt with as far as the level of
dumping is concerned in recitals 71 to 75 and 76 to 79.
According to the information available, i.e. Eurostat, the
non-cooperating producers did not export CTVs of Thai
origin to the Community during the review IP. There-
fore, there was no data available in order to determine a
new level of dumping for Thailand.

E. CONTINUATION OR RECURRENCE OF DUMPING

(84)

(85)

In accordance with Article 11(2) of the basic Regulation,
it was examined whether the expiry of the measures in
force would be likely to lead to a continuation or recur-
rence of dumping.

In order to determine whether there was a likelihood of
continuation of dumping, the Commission investigated
the existence of current dumping on exports from the
countries concerned to the Community on the grounds
that if dumping was taking place, then it was reasonable,
in the absence of any information to the contrary, to
consider that it would be likely to continue in the future.

(86) As to the examination of

i.e.

the likelihood of

the likely recurrence of
dumping,
increased exports at
dumped prices should the current measures be repealed,
which is necessary when the volumes from the countries
concerned are relatively small, the Commission investi-
gated whether future dumping was likely and whether
any such dumping would take place in significant quant-
ities.

1. People's Republic of China

(87) As previously mentioned, no Chinese

cooperating
company has exported CTVs to the Community during
the review IP. However, according to the information
available from Eurostat, CTVs were exported from this
country during the review IP. In accordance with the
information available, as set out in recital 70,
it was
confirmed that
the level of dumping for the CTVs
originating in and exported from this country continued
to be significant.

(88)

In addition, the investigation showed that a significant
volume of CTVs exported to the Community from
Turkey originated in the China. It was found that these
CTVs were
significantly
exported from Turkey at
dumped prices.

(89) Moreover, the comparison of normal value established
in the analogue country, Turkey, with the prices of
Chinese exports to third countries showed that these
exports were made at considerably dumped prices.

(90) According to information submitted by the cooperating
Chinese companies, the production capacity for CTVs in
the China has increased since 1998, whilst domestic
consumption was not able to absorb production.
According to this information, there are significant spare
production capacities of CTVs for export in the China as
almost half of the existing capacity, representing around
50 % of the Community market, is unused. It is there-
fore considered most likely that, should measures be
repealed, the dumped exports of Chinese CTVs to the
increase significantly.
Community will

(91)

Therefore, there is no reason to believe that dumping
will not continue if the measures in force were repealed.

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2. Korea

(92) As previously mentioned, no producers in Korea cooper-
ated in the investigation. Moreover, according to data
derived from Eurostat, CTVs were exported from that
country in relatively large quantities during the review
IP. In accordance with the information available as set
out in recitals 74 and 75, the Commission confirmed
that the level of dumping for the CTVs exported from
that country continued to be significant.

(93)

Furthermore,
information
in accordance with the
obtained by the cooperating producers in Turkey (Beko
Elektronik AS) and Thailand (Thomson Television Thai-
land), the investigation showed that CTVs sales origin-
ating in Korea and exported from these countries were
made at dumped prices.

(94) According to the information available, i.e. the review
request,
large capacities for CTVs production exist in
Korea and the domestic consumption absorbs less than
15 % of the production which leaves significant scope
for increased exports. Moreover, while this capacity
remained stable between 1996 and 1999, the domestic
consumption in the same period decreased by 23 %.
Although there are expectations that the market demand
in Korea will grow moderately, there remain significant
free production capacities of CTVs in Korea. As the
origin of the CPTs is often decisive in determining the
origin of the CTVs, the production capacities of CPTs in
Korea were examined and were also found to be signifi-
cant.

(95)

In conclusion, the facts available indicate the existence
of significant capacities which could be directed to the
Community should the current measures be repealed. In
these circumstances, there is no reason to believe that
the repeal of measures would not lead to continuation
of dumping in significant quantities from Korea.

3. Malaysia

(98) According to the information available, in particular the
review request,
large capacities for CTVs production
exist in Malaysia. As the origin of the CPTs is often
decisive in determining the origin of
the
production capacities of CPTs in Malaysia were exam-
ined and were also found to be significant.

the CTVs,

(99)

In conclusion, there is no reason to believe that the
repeal of measures would not lead to continuation of
dumping in significant quantities from Malaysia.

4. Singapore

(100) Given the very low volume of dumped exports during
the review IP, it was considered appropriate to examine
the likelihood of recurrence of dumping.

(101) Since the imposition of anti-dumping measures in 1995,
imports of CTVs originating in Singapore decreased
from around 36 000 sets to around 2 000 sets, holding
a share of the Community market which decreased from
0,1 % to close to 0 %. This decrease in the volume of
imports should be seen in the light of the fact that two
exporting producers had an anti-dumping duty of 0 %.
Furthermore, exports of Singaporean CTVs to other
main CTV markets, such as the United States of America
were also at very low levels (35 000 sets in 1999). It is
therefore reasonable to conclude that the decrease in the
volume of exports from Singapore is not due to the
imposition of anti-dumping measures on this country,
but rather to the focus of domestic production on local
markets.

(102)

Information provided by the applicant in the request for
review shows that production in Singapore substantially
decreased from an estimated 4,5 million sets in 1995 to
an estimated 1,3 million sets in 1999. Capacity was also
reduced due to the discontinuation of production by
several Singaporean producers.

(103)

In view of the above, it is not expected that the repeal of
the anti-dumping measures in force would lead to a
recurrence of dumping in significant quantities from
Singapore.

(96) As previously mentioned, no producer in Malaysia coop-
erated in the investigation. Moreover, Eurostat shows
that certain quantities of CTVs were exported from that
country during the review IP. In accordance with the
information available, as set out in recitals 76 to 79, the
Commission confirmed that the level of dumping for the
CTVs exported from this country continued to be signif-
icant.

(97)

information
in accordance with the
Furthermore,
obtained by the cooperating producers in Turkey (Beko
Elektronik AS) and Thailand (Thomson Television Thai-
land), the investigation showed that significant CTVs
sales originating in Malaysia and exported from these
countries were made at dumped prices.

5. Thailand

the CTVs

(104) Although several CTVs producers exist in Thailand, only
one which had exported CTVs to the Community during
the review IP cooperated in the investigation. However,
exported to the
as mentioned above,
Community by this producer were found to be dumped
but being of Korean and Malaysian origin. According to
the information available, i.e. the review request, large
capacities for CTVs production exist in Thailand and the
domestic consumption absorbs less than 16 % of the
production which leaves significant scope for increased
exports. Moreover, while this capacity increased by 17 %
between 1996 and 2000, domestic consumption in the
same period decreased by 30 % leaving, thus, significant
free production capacities of CTVs in Thailand.

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(105) As the origin of the CPTs is often decisive in deter-
mining the origin of the CTVs, the production capacities
of CPTs in Thailand were examined and were also found
to be significant.

(110)

(107)

In the Community CTVs are manufactured by the
following operators:

(112)

in significant quantities

(106) There are, therefore, sound reasons to believe that the
repeal of measures would lead to a recurrence of
dumping
from Thailand.
Regarding the level of dumping, there are no reasons to
believe that it would be less than the residual margin
established for the non-cooperating exporting producers
(i.e. 33,6 %) and 14,7 % for Thomson Television Thai-
land as found in the context of
the previous anti-
dumping investigation.

F. COMMUNITY INDUSTRY

1. Community production

— five producers who lodged and/or supported the
complaint and cooperated during the investigation:
(IT), Grundig (D), Philips Elec-
Industrie Formenti
(IT) and
tronic Consumers (NL), Seleco Formenti
Tecnimagen (E),

— one producer who lodged the complaint but finally
did not cooperate: AR Systems (E). The company
was informed of its exclusion from the Community
industry and raised no objections,

— six producers, which were not

complainants,
submitted some basic information, while not fully
replying to the questionnaire, did not oppose the
proceeding: Great Wall
(F), Matsushita Panasonic
(UK) Mivar (I), Sanyo (E), Semitech Turku (FI), and
Thomson Multi Media (F). The latter opposed the
continuation of the anti-dumping measures,

— other producers which did not cooperate but did not

oppose to the procedure.

(108)

It was assessed whether the abovementioned companies
could be considered as constituting the Community
production, within the meaning of Article 4(1) of the
basic Regulation.

the activities of

this
the core of
It was found that
company (i.e. production sites, headquarters and R&D)
lies within the Community and therefore this company
should not be excluded from the definition of
the
Community production. As to other Community produ-
cers which neither participated in the investigation nor
provided any information, there were no indications to
conclude that any of these producers should not belong
to the Community production.

(111) One Turkish exporter claimed that one complainant
Community producer should be excluded from the
Community production, considering that it had moved
the bulk of its CTV production outside the Community,
i.e. to its factories in Poland and Hungary. It should
firstly be noted that the basic Regulation merely allows
for the exclusion of Community producers which are
related to the exporters concerned or are themselves
importers of the allegedly dumped product. Nonetheless,
this
since the complainant
Community producer in question produces the product
concerned in the Community and still has the core of its
activities in the Community (i.e. consumer electronics,
production sites, headquarters and R&D) and should
therefore not be excluded from the definition of the
Community production.

the case here,

is not

It is therefore considered that all the abovementioned
operators are Community producers and thus constitute
the Community production within the meaning of
Article 4(1) of the basic Regulation.

2. Definition of the Community industry

(113) The five cooperating Community producers, i.e. Indus-
trie Formenti, Grundig, Philips Consumer Electronics,
Seleco Formenti and Technimagen,
fulfil the require-
ments of Article 5(4) of the basic Regulation, since they
account for 30 % of the total Community production of
CTVs. They are therefore deemed to constitute the
Community industry within the meaning of Article 4(1)
of the basic Regulation and will be referred to as the
‘Community industry’.

G. ANALYSIS OF THE SITUATION OF THE COMMUNITY

CTV MARKET

1. Preliminary remark

(109) One non complainant Community producer was found
to be related to one exporter concerned and to be
importing itself CTVs originating in two of the countries
concerned. In accordance with Article 4 of the basic
Regulation it was examined whether this producer was
were merely supplementing their Community produc-
tion with an additional activity based on imports or it
was rather an importer with relatively limited additional
production in the Community.

(114)

It should be noted that Seleco Formenti was declared
bankrupt in April 1997 and was purchased by Industrie
Formenti in March 1998. The new entity re-started CTV
production in October 1998. Thus,
reason of
comparability of the trends pertaining to the situation of
the Community industry, the data provided by Seleco
Formenti has been excluded from the total of
the
Community industry.

for

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(115) As already mentioned in recital 18 the analysis of trends
relevant for the assessment of injury covered the period
1995 to 30 June 2000 (period considered).
In this
respect it is worth noting that the review IP corresponds
to the year 1999.

(121) Total imports concerned increased by 73 %, going from
1,4 million in 1995, to 1,2 million in 1996, to 1,3
million in 1997, to 1,8 million in 1998, to 2 million in
1999 and to 2,5 million in the IP.

2. Apparent Community consumption

(122) The share of the Community market of the imports
concerned evolved from 5,6 % in 1995 to 4,8 % in
1996, 4,6 % in 1997, 5,7 % in 1998, 6,6 % in 1999 and
7,5 % during the IP.

by

other

industry

(116) Apparent consumption was based on the combined
volume of sales in the Community market by the
Community
cooperating
and
Community producers as reported in their question-
naires replies, the volume of sales provided by certain
other Community producers, the estimated volume of
sales by other non-cooperating Community producers as
reported in the request for a review and the information
on the volume of total imports as reported by Eurostat,
cross-checked where possible by reference to the infor-
mation provided by cooperating exporters.

(117) Consumption of CTVs is influenced by major sporting
event such as world and European football champion-
ships and Olympic games, when sales of CTVs generally
increase.

(118) Over the period considered consumption of CTVs in the
Community increased by 31 % from 24,7 million in
1995 to 24,5 million in 1996, to 27,7 million in 1997,
to 31 million in 1998, to 30,7 million in 1999 and to
32,4 million during the IP.

3. Imports from the countries concerned

(119)

the above findings concerning origin,

In view of
in
particular the lack of imports of CTVs originating in
Thailand, the assessment of imports from the countries
concerned will be limited to imports originating in
China, Korea, Malaysia and Singapore.

(a) Volume of the imports concerned and market share

(120) The volume of

imports originating in the countries
concerned during the IP also includes those CTVs which
were found to originate in a country concerned different
from that of exportation as explained above. In order to
have comparable trends, in the case of imports of CTVs
originating in the countries concerned but exported
from other countries, the ratio of CTVs originating in
the countries concerned found for the IPs was applied
for the previous years.

(b) Prices of the dumped imports

(i) E v o l u t i o n o f p r i c e s

(123) According to data supplied by Eurostat and cooperating
import prices
the weighted average unit
exporters,
(duties unpaid) in the IP amounted to EUR 101 in the
case of imports originating in the China, EUR 123 in
the case of
imports originating in the China but
exported from Turkey, EUR 180 in the case of imports
originating in Korea, EUR 115 for imports originating
in Malaysia, EUR 82 for imports originating in Malaysia
and exported from Thailand and EUR 170 for imports
originating in Singapore.

(124) These prices are the result of the mix of all models and
screen sizes. If only the small screen size segment is
considered (14 inches), which represents around 50 % of
all imports into the Community; the weighted average
unit import prices in the IP amounted to EUR 90 for
China, EUR 86 for imports originating in China and
exported from Turkey, EUR 151 for Korea, EUR 93 for
Malaysia, EUR 82 for imports originating in Malaysia
and exported from Thailand and EUR 147 for Singa-
pore.

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

(125)

In order to examine the price behaviour of Chinese
imports in the Community market, the prices of the
imports concerned were compared to those of the sales
made by the Community industry in the Community
market, net of all rebates and discounts, at the same
level of trade. In the case of CTVs exported from Turkey
and originating in the China, Korea and Malaysia, this
examination was done on the basis of data pertaining to
a period of six months, since as mentioned above the
investigation periods of both proceedings only over-
lapped from 1 July 1999 to 31 December 1999. The
import prices were at the cif Community frontier level
and were duly adjusted for customs and anti-dumping
duties paid and post-importation costs. The prices of the
Community industry were those to the first unrelated
customer at an ex-works level.

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(126)

In view of the large number of models, the CTVs sold in
the Community market were categorised according to
those features considered to have the greatest impact on
the cost of CTVs, namely screen size, screen format,
screen type, picture frequency, sound, teletext and TV
system. For those countries where no cooperation was
obtained from the exporting producers, price compari-
sons were carried out on the basis of the information
available, i.e. data obtained from Eurostat, taking into
account screen sizes.

(127) The differences

in prices, when expressed as

a
percentage of the Community industry's prices showed
margins of price undercutting ranging between 1,9 %
and 34,3 % for all countries concerned with the excep-
tion of Singapore, for which no price undercutting was
found.

(d) Sales volume and market share

(133) The sales volume of the Community industry to unre-
lated customers in the Community evolved from 5,9
million in 1995 and 1996, to 5,4 million in 1997 and
1998, to 5,3 million in 1999 and 5,5 million during the
IP.

(134) Sales decreased by 7 % between 1995 and the IP. They
remained stable between 1995 and 1996 and decreased
by 8 % between 1996 and 1997. Between 1997 and the
IP, sales increased by 3 %.

(135) The Community industry's share of

the Community
market went from 24 % in 1995 to 17 % during the IP,
which corresponds to a decrease of seven percentage
points.

4. Economic situation of the Community industry

(a) Preliminary remark

(e) Growth

(128) The situation of the Community industry should be seen
in the light of
in 1997 the largest
Community producer closed some production facilities
of CTVs and relocated them to Poland, which is in itself
a consequence of a critical situation of the Community
industry on the Community market.

the fact

that

(b) Production, capacity and utilisation

(129) The production of

the Community industry evolved
from 6,5 million in 1995, to 6,6 million in 1996, 6
million in 1997, 6,1 million in 1998, 5,9 million in
1999 and 6 million during the IP i.e. an overall decrease
of seven percentage points.

(130) The Community industry production capacity evolved
from 7,5 million in 1995 to 7,7 million in 1996, to 7,3
million in 1997, to 7 million in 1998, to 7,1 million in
1999 and during the IP, with an overall decrease of four
percentage points during the whole period.

(131) The Community industry's capacity utilisation remained
stable, evolving from 87 % in 1995 to 85 % in 1996,
82 % in 1997, 86 % in 1998, 83 % in 1999 and to 85 %
in the IP.

(c) Stocks

(132) The level of stocks by the Community industry went
from around 500 000 in 1995, to around 400 000 in
1996 and 1997, to around 500 000 in 1998 and to
around 400 000 in 1999. With the exception of 1998,
the volume of stocks remained relatively stable over the
period considered, both as a percentage of production
volume (7 %) as well as a percentage of sales volume
(8 %).

(136) While Community consumption increased by around
30 % over the period considered, the sales volume of the
Community industry decreased by around 7 % and the
imports concerned increased by 73 %.
volume of
Despite the growth in consumption, the Community
industry did not increase its share of the Community
market, which went from 24 % in 1995 to 17 % in the
IP. Thus, the Community industry could not fully benefit
from the growth of the market.

(f) Sales prices and factors affecting Community prices

(137) CTVs are progressively becoming a mature product,
where prices are eroded regularly. The erosion in prices
is more evident in the small screen sizes, with a limited
number of features and generally used as second or third
set in households.

(138) The main cost element for CTVs is the price of the CPT,
often representing between 40 % and 60 % of the price
of CTVs. In this respect, certain Community producers
indicated the existence of a shortage of CPTs in the
Community market during the period considered, espe-
cially in 1999 and the IP. Moreover, several Community
producers also indicated that given the fact that a part of
CPTs
incorporated in CTVs manufactured in the
Community is purchased in US dollars, the average cost
of CPTs increased in 1999 and during the IP for
Community producers due to the development of
exchange rates.

(139) Weighted average unit prices of the Community industry
to unrelated customers went from EUR 300 in 1995 to
EUR 302 in 1996, EUR 306 in 1997, EUR 320 in
1998, EUR 309 in 1999 and EUR 319 during the IP.
The average sales prices do not reveal a price erosion,
because it is the result of the product mix of types sold.

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(140) However, the price erosion is evident if the average sales
prices per screen sizes are examined. For instance the
weighted average sales price of 14-inch CTVs by the
Community industry decreased from EUR 105 in 1999
to EUR 102 during the IP. Those of 21-inch CTVs
decreased from EUR 172 to EUR 168 whereas those of
28-inch CTVs decreased from EUR 380 to EUR 350.

(141)

In conclusion, the increase in the weighted average sales
prices by the Community industry is the result of a
change in the product mix, towards those models with a
higher value added.

(g) Employment

(142) Employment of

the Community decreased by 20 %
during the period examined, evolving from 6 500
employees in 1995, to 6 000 employees in 1996, to
5 600 employees in 1997, to 5 000 employees in 1998,
to 5 100 in 1999 and to 5 200 employees during the IP.

(h) Productivity

(143) Productivity of the Community industry increased from
1 000 units per employee in 1995 to 1 100 in 1996
and 1997, 1 200 in 1998 and 1 150 in 1999 and in the
IP, with an overall growth of 16 %.

(i) Wages

(144) Wages of

the Community industry per employee
remained stable in 1995 and 1996, increased by 2 % in
1997, by 1 % in 1998 and by a further 7 % in 1999.

Between 1998 and 1999 profitability deteriorated, due
to a decrease in sales prices. Between 1999 and the IP
profitability improved, due to an increase in sales prices
resulting from a change in the product mix, although it
remained at a low level.

(l) Cash flow, return on investments and ability to raise

capital

(147) Cash flow of the Community industry calculated as the
profit before taxes including non-cash items, after a
recovery in 1997, decreased progressively until the IP.

(148) Concerning the return on investments,

it was around
15 % in 1995, negative in 1996, clearly positive in 1997
and 1998, slightly positive in 1999 and during the IP.

(149) None of the companies constituting the Community
industry indicated any particular difficulties to raise
capital.

(m) Magnitude of the dumping margin and recovery from

past dumping

(150) 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 countries
concerned, this impact cannot be considered to be negli-
gible. The
industry
improved in the period considered. However, it did not
fully recover from past dumping and continues to be
weak.

the Community

situation of

(j) Investments

5. Conclusion

(145)

Investments by the Community industry related to CTVs
increased from EUR 48 million in 1995, to EUR 52
million during the IP, i.e. an increase of 10 %. Invest-
ments represented around 2 % of the turnover. With the
exception of 1996 and 1997, the level of investments by
the Community industry remained relatively stable
during the period considered. Investments made by the
Community industry in the IP consisted mostly in the
setting up of automatic storage facilities.

(k) Profitability

(146) The return on net sales made by the Community
industry in the Community market, before taxes, evolved
from –2,7 % in 1995 to +1,3 % during the IP. Following
the break-even was reached in
restructuring efforts,
1996. The profitability of
the Community industry
improved in 1997, coinciding with further restructuring
through the relocation of part of the production of the
main Community producer to Poland. In 1998 the prof-
itability remained at the same level, due to an increase in
the sales prices, coinciding with important sporting
championship.
the world football
events

such as

(151) After the imposition of measures in 1995, the situation
of the Community industry improved, and by 1997, the
year in which significant restructuring took place,
its
profitability reached a satisfactory level.

(152) However, after 1998, the situation of the Community
industry deteriorated,
in particular in terms of profit-
ability which decreased to 1,3 % in the IP. The poor
profitability in 1999 was due to a decrease in the sales
prices, which were insufficient to cover the increasing
costs of the Community industry. In the IP, despite an
increase in the prices, costs increased above prices,
mostly due to an increase in the prices of CPT, the main
input in the production of CTVs, and to the pressure
exerted on prices by imports, thus preventing the profit-
ability of the Community industry from improving to
the levels in 1997 and 1998.

(153) Furthermore,

despite

an increase

in Community
consumption (31 % over the period considered),
the
Community industry did not benefit from this growth of
the market and lost market share, which dropped from
24 % in 1995 to 17 % in the IP.

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(154)

In view of the above it is concluded that the situation of
the Community industry improved as from 1995 but
continues to be weak.

(160) With regard to their share of the Community market, it
rose from 4,2 % in 1995 to 27,3 % in the IP, of which
Poland hold 16,4 %, Hungary 4,8 %, Lithuania 2,8 %,
Czech Republic 2 % and other exporters 1,3 %.

6. Impact of the imports concerned

(155) The investigation has shown that, despite the existence
of anti-dumping measures; imports from the countries
concerned have increased by 73 % over the period
considered, whereas consumption only increased by
31 %. The biggest increase took place between 1997 and
1998, when imports rose by 42 %, coinciding with the
sharpest increase in consumption (+12 %). The share of
the Community market held by the imports concerned
increased from 5,7 % in 1995 to 7,5 % in the IP.

(156) Export performance has varied between the countries
concerned.
Imports originating in Singapore have
decreased over the period considered, holding a share of
the Community market close to 0 % in the IP. Imports
originating in China increased substantially, the increase
being attributable to the imports of CTVs originating in
China exported from Turkey. The Chinese market share
rose from 1,2 % in 1995 to 3,9 % during the IP. Imports
originating in Korea increased substantially between
1998 and 1999 and their market share rose from 0,4 %
in 1995 to 2 % during the IP. Imports originating in
Malaysia decreased. Their market share decreased from
3,9 % to 1,6 %.

those originating in Singapore,

(157) Regarding the prices of the imports concerned, with the
exception of
they
undercut those of the Community industry during the
IP. Furthermore, the imports concerned exerted a pres-
sure on the prices of the Community industry which
prevented them from reflecting the increased costs of
the Community industry especially in 1999 and in the
IP. Thus, the price pressure exerted by the countries
concerned contributed to the deterioration of the profit-
ability of the Community industry.

7. Import volumes and prices from other third

countries

(158)

Imports from other third countries have been estab-
lished on the basis of Eurostat data and also include
CTVs exported from Turkey but originating in any of
these third countries, according to the findings on origin
for the IP. It should be noted that Eurostat figures, which
were the only information available, may not reflect the
actual origin of CTVs imported into the Community
from other third countries.

(159) The volume of CTV imports from other third countries
increased by more than 800 % over the period consid-
ered, from 1 million units in 1995 to 8,9 million in the
IP. The main exports originated in Poland (from
401 000 in 1995 to 5,3 million during the IP), Hungary
(from 115 000 to 1,6 million), Lithuania (from 114 000
to 920 000) and the Czech Republic (from 2 000 to
660 000).

(161) With regard to the prices of these imports, those origin-
ating in Poland and Lithuania are below those of the
Community industry and along the lines of those of
some of the countries concerned. It cannot therefore be
excluded that these imports have also contributed to the
stagnation of
share by the
the sales and market
Community industry and to the price depression and
decreasing profitability in the IP.

(162)

imports

from other

third countries
In conclusion,
increased significantly during the period considered, well
above the increase in apparent consumption and above
the increase in the volume of imports from the countries
concerned.

H. LIKELIHOOD OF CONTINUATION OR RECURRENCE

OF INJURY

1. Analysis of the situation of the exporting produ-

cers from the countries concerned

(a) China

(163)

In the examination of the likelihood of continuation or
recurrence of injury account was taken of CTVs origin-
ating in China whether exported from China or from
other countries, such as Turkey.

(i) L i k e l y e x p o r t v o l u m e

(164)

Imports into the Community of Chinese originating
CTVs increased by 413 % over the period considered.
Exports from China decreased between 1995 and 1996
and remained at around the same level between 1996
and the IP. Exports from Turkey increased continuously
from around 190 000 sets in 1995 to around 1,2
million sets in the IP. Over 95 % of the imports origin-
ating in China in the IP corresponded to small screen
CTVs (14 inches).

(165)

Information provided by the applicant in the request for
review shows that substantial production capacity exists
in China, for around 40 million sets. Furthermore, infor-
mation was provided showing that production was
around 31 million sets and domestic consumption
around 23 million sets, leaving substantial amounts of
CTVs available for export.

(166) The Chinese exporting producers have in turn argued
that while production and capacity currently exceed
demand, the Chinese domestic demand for CTVs is likely
to increase in the near future,
leaving no available
production capacity for export. However, no evidence
was provided in support of this claim.

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(167) The

investigation showed that Chinese domestic
consumption has continuously increased, rising from an
estimated 17 million sets in 1996 to an estimated 23
million sets
in 2000. However, production also
increased during the same period, at a level exceeding
domestic consumption by between 7 and 10 million
sets.

(168)

It was also found that exports of Chinese CTVS to the
USA as reported in the Eurostat statistics increased
substantially from around 220 000 sets in 1996 to
around 900 000 sets in 2000, at prices which were
substantially below those of the Chinese exports to the
Community. Exports of Chinese CTVs to Japan increased
from around 1,3 million sets in 1996 to around 2,3
million sets in 2000. Information provided by the appli-
cant in the request for review indicated that these were
exports of CTVs produced by subsidiaries of Japanese
producers in China and sold in Japan through their own
distribution network.

(169)

In view of the above it is concluded that despite an
increase in domestic consumption in China, substantial
excess production and capacity exist in China for export.
Based on the above,
it is likely that the volume of
exports of Chinese CTVs to the Community would
increase should anti-dumping measures be repealed.

(ii) L i k e l y e x p o r t p r i c e s

(170) A comparison of the prices of Chinese CTVs as reported
by Eurostat and by the cooperating Turkish exporting
producer with those of the Community industry in the
IP shows that the prices of the CTVs originating in
China substantially undercut those of the Community
industry, between 18,9 % and 34,3 %.
Information
provided by interested parties shows that the bulk of
Chinese exports to the Community is in small screen
sizes (14 inches) with generally less features and where
the scope for price differentials between models is more
reduced. Thus, it is considered that the calculation of
price undercutting on this basis adequately reflects the
price differential between Chinese and Community
CTVs.

(171) The weighted average Chinese exports prices to the
United States of America, without distinction of screen
sizes, converted to a constructed cif Community border
price were also significantly lower than the Community
industry's prices.

(172) From the above it can be concluded that prices of
exports from China to the Community market are likely
to undercut
the Community industry
should measures be allowed to lapse. Thus, it can be
concluded that there is a likelihood of recurrence of
injury.

the prices of

(b) Korea

(173)

In 1998, the CTV Regulation was amended as regards
imports originating inter alia in Korea. The dumping
margin found for two Korean exporting producers, LG
Electronics and Samsung Electronics, was de minimus and

thus no anti-dumping duties were imposed on these two
exporting producers.

(174)

In the examination of the likelihood of continuation or
recurrence of injury account was taken of Korean origin-
ating CTVs exported from Korea and also from other
countries concerned, such as Thailand and Turkey.

(i) L i k e l y e x p o r t v o l u m e

(175) Exports of CTVs originating in Korea decreased from
around 98 000 sets in 1995 to around 80 000 in 1997.
In 1998 the volume of imports increased to around
200 000 sets. Imports continued to increase to around
500 000 sets in 1999 and to around 650 000 sets in the
IP. The biggest increase in the volume of imports took
place in medium/large screen sizes. The share of the
Community market held by Korean imports in the IP
amounted to 2 %.

(176)

Imports of Korean CTVs into the United States of
America were subject to anti-dumping measures since
1984. However, in November 1998 the United States of
America allowed the anti-dumping measures to expire
given the failure of the USA domestic industry to reply
to the notice of initiation of the expiry review. The
volume of
imports of Korean CTVs into the United
States of America, on the basis of the Eurostat statistics,
increased continuously from around 150 000 sets in
1996 to around 600 000 sets in 1999 and 2000. The
significant increase in the volume of exports to the
United States of America in 1999 coincided with the
revocation of the anti-dumping duties in force in the
United States of America on imports originating in
Korea.

(177) Exports of Korean CTVs to Japan, decreased from
around 1 million sets in 1996 to around 700 000 in
1999 and further decreased significantly to around
380 000 in 2000.

(178)

Information available to the Commission shows that
significant production capacity exists in Korea and that
than 15 % of
domestic consumption absorbs
domestic production,
scope for
increased exports. There are also significant production
capacities for CPTs in Korea.

leaving substantial

less

(179) From the above it can be concluded that the likelihood
exists that
imports will continue to
increase should anti-dumping measures be allowed to
lapse.

the volume of

(ii) L i k e l y e x p o r t p r i c e s

(180) A comparison of the prices of Korean CTVs as reported
by Eurostat and by the cooperating Turkish and Thai
exporting producers with those of
the Community
industry in the review IP per screen sizes shows that the
prices of the CTVs originating in Korea undercut those
of the Community industry between 11 % and 36 %.

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(181) The weighted average Korean exports prices to the
United States in America in the IP, without distinction of
screen sizes, converted to a constructed cif Community
border price were also below those of the Community
industry.

(182) From the above it can be concluded that prices of
Korean exports to the Community are likely to undercut
the prices of the Community industry should measures
be allowed to lapse. Thus, it can be concluded that there
is a likelihood of recurrence of injury.

(c) Malaysia

(183)

In the examination of the likelihood of continuation or
recurrence of injury account was taken of CTVs origin-
ating in Malaysia, whether exported from Malaysia or
from other countries, such as Thailand and Turkey.

(i) L i k e l y e x p o r t v o l u m e

(184) Exports of CTVs originating in Malaysia decreased from
around 970 000 sets in 1995 to around 530 000 in the
IP and their share of the Community market decreased
from 3,9 % in 1995 to 1,6 % in the IP. Around 90 % of
these exports were made from Thailand.

(185) The volume of

imports of Malaysian CTVs into the
United States of America, on the basis of the Eurostat
statistics, increased from around 3 million sets in 1996
and 1997 to 3,6 million in 1998, to 5,4 million in 1999
and to 7 million sets in 2000.

(186) The volume of imports of Malaysian CTVs into Japan,
increased from 2,5 million sets between 1996 and 1998
to 3 million sets in 1999 and then to 4 million sets in
2000.

(187)

Information provided by the applicant in the request for
review shows that the Malaysian producers are fully
utilising their capacity and that only around 5 % of
domestic production is destined for
the domestic
market, the rest being destined basically for Japan, the
United States of America and the Community market.

(188)

It is therefore concluded that a certain increase in the
volume of Malaysian imports of CTVs could take place if
the anti-dumping measures were repealed.

(ii) L i k e l y e x p o r t p r i c e s

(189) A comparison of

the prices of Malaysian CTVs as
reported by Eurostat and by the cooperating Turkish and
Thai exporting producers with those of the Community
industry in the IP per screen sizes shows that the prices
of the CTVs originating in Malaysia undercut those of
the Community industry between 17 % and 21 %.

(190) The weighted average Malaysian export prices to the
United States of America in the IP, without distinction of
screen sizes, converted to a constructed cif Community
border price, were below those of
the Community
industry. Given the level of pricing practised by Malay-
sian exporters in the United States of America, a major
third country market, it cannot be excluded that, should
anti-dumping measures be repealed, significant quant-
ities of CTVs of Malaysian origin could be exported to
the Community at dumped prices, causing injury to the
Community industry.

(191) From the above it can be concluded that prices of
Malaysian exports to the Community are likely to
undercut the prices of the Community industry should
measures be allowed to lapse. Therefore, there is a likeli-
hood of recurrence of injury.

(d) Singapore

(192) Since no cooperation was obtained from any exporting
producers in this country, the analysis of the likelihood
of continuation or recurrence of injury was based on the
information available, in accordance with Article 18 of
the basic Regulation.

(i) L i k e l y e x p o r t v o l u m e

that production capacities

(193) As already mentioned in recital 103, it is unlikely that a
repeal of the anti-dumping measures will result in an
increase in the volume of Singaporean exports to the
Community. This conclusion was reached in view of the
fact
in Singapore have
decreased due to the discontinuation of production by
several
the volume of
imports did not increase during the period considered
despite the 0 % anti-dumping duty applicable to two
exporting producers and the low volume of exports of
Singaporean CTVs to other third markets.

local producers,

the fact

that

(ii) L i k e l y e x p o r t p r i c e s

(194) A comparison of the prices of the CTVs exported from
Singapore with those of the Community industry in the
IP shows that the prices of the CTVs originating in
Singapore were not
the
Community industry.

undercutting

those

of

(195) The average prices of the exports from Singapore to the
USA, without distinction of screen sizes were higher
then those of exports to the Community in 1997, 1998
and 2000, with the exception of 1999.

(196) From the above,

it is unlikely that in the absence of
anti-dumping measures such imports would be at prices
which could contribute to the deterioration of the situa-
tion of
therefore
concluded that a recurrence of injury caused by imports
originating in Singapore is unlikely.

the Community industry.

is

It

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(e) Thailand

(197) According to the information presented in the request
for a review a number of CTV producers exists in Thai-
land, although only one of them cooperated during the
investigations. However,
this exporting producer was
found to have exported to the Community CTVs origin-
ating in countries concerned other than Thailand.
In
view of the above, the examination of the likelihood of
continuation or recurrence of injurious dumping was
done on the basis of the information available.

(204) Given the level of pricing practised by Thai exporters in
other major third country markets, mainly United States
of America (4,7 million sets) and Japan (1,4 million sets)
it cannot be excluded that, should anti-
in 2000,
dumping measures be allowed to lapse,
significant
quantities of Thai CTVs could be exported to the
Community at dumped prices, causing injury to the
Community industry.

(205)

It is therefore concluded that there is a likelihood of
recurrence of injurious dumping resulting from imports
of CTVs originating in Thailand should the current anti-
dumping measures be repealed.

(i) L i k e l y e x p o r t v o l u m e

(198) According to the information submitted by the applicant
in the request
for a review, substantial production
capacity for CTVs exists in Thailand, which increased
from around 4,5 million units in 1996 to around 5,3
million in 2000.

(199) During the same period domestic consumption in Thai-
land was found to have decreased from around 1,2
million units in 1996 to around 840 000 in 2000,
leaving, thus, substantial quantities available for export.

imports of Thai CTVs

(200) On the basis of the information provided by Eurostat,
into Japan
the volume of
decreased from 1,5 million units in 1996 to 1,3 million
in 2000. By contrast, the volume of imports of Thai
CTVs into the USA increased from 1,2 million units in
1996 to 4,7 million in 2000. It is therefore concluded
that domestic consumption, which contracted over the
period examined, is able to absorb only a marginal part
of the total Thai production of CTVs.

(201) Furthermore, according to information available to the
Commission services, substantial production capacity for
CPT exists in Thailand, which has increased from around
6,6 million in 1997 to around 7,7 million in 2000.

(202) From the above it can be concluded that an increase in
the volume of imports of CTVs originating in Thailand
could take place if
the anti-dumping measures were
repealed.

2. Conclusion on the likelihood of recurrence of

injury for the Community industry

(206) On the basis of the above it is likely that the repeal of
the anti-dumping measures on imports of CTVs origin-
ating in China, Korea, Malaysia and Thailand would
result in an increase in the volume of imports origin-
ating in these countries into the Community,
thus
eroding the share of the Community market held by the
Community industry.

(207) Given the findings regarding the price behaviour of these
imports into the Community and, where available, into
other third countries,
it is likely that an increase in
volume of imports at low prices will depress the prices
of the Community industry. This would in turn lead to a
situation
deterioration
the
financial
of
is concluded that
Community industry. Therefore,
there is a likelihood of recurrence of injury caused by
dumped imports originating in the countries concerned.

the

of

it

(208) On the other hand, given the findings regarding imports
of CTVs originating in Singapore, it is unlikely that these
imports will contribute to the deterioration of the situa-
tion of the Community industry. Consequently, it is not
considered that there is a likelihood of recurrence of
injury should the measures against imports from Singa-
pore be repealed.

I. COMMUNITY INTEREST

(ii) L i k e l y e x p o r t p r i c e s

(203) The weighted average Thai export prices to the United
States of America and to Japan in the IP, without distinc-
tion of screen sizes, converted to a constructed cif
Community border price, were below those of
the
Community industry and along the lines of those origin-
ating in Malaysia, for which it has been concluded that a
likelihood of recurrence of injurious dumping exists.

(209) According to Article 21 of the basic Regulation, the
Commission examined whether the maintenance of the
anti-dumping measures would be in the overall interest
of the Community.

(210)

It is recalled that the anti-dumping measures have been
in force on imports of CTVs originating in Korea since
1990, China since 1991 and Malaysia, Singapore and
Thailand since 1995.

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1. Interest of the Community Industry

significant adverse effect on the situation of the CTV
industry.

(a) Change in the situation of the Community industry

(211)

In the present investigation the Community industry is
composed of five producers out of which one is a large
multinational company operating inter alia in the market
of CTVs world-wide, one is a medium company with
two production sites
in the Community and the
remaining three are small companies with production
sites in Italy and Spain.

(212) The investigation has

shown that

the Community
industry has benefited from the anti-dumping measures
in place. In recent years, it has made considerable efforts
to restructure and to improve its productivity through
rationalisation. Since the imposition of the initial anti-
dumping measures in 1990 certain Community produ-
cers have closed down their
facilities; others have
considerably restructured by concentrating in core
production sites and others have relocated part of their
production facilities to other third countries. In partic-
ular, since the imposition of anti-dumping measures in
1995, the largest Community producer has relocated
part of its production facilities to Poland.

(b) Impact of the continuation of the measures

(213) Although over the period considered the situation of the
Community industry improved, certain economic indica-
tors show a declining trend. The Community industry's
decrease in production, sales and market share between
1995 and 1997 is mainly explained by the closure of
some production facilities in the European Union by the
largest Community producer of CTVs. Between 1997
and the IP the Community industry regained production
and sales but
the Community market
decreased, since the increase in consumption during that
period was only to the benefit of imported CTVs.

its share of

(214) Regarding profitability, the return on sales achieved by
the Community industry improved significantly from
-2,7 % in 1995 to 5,3 % in 1998, but it deteriorated to
0,8 % in 1999 and then reached 1,3 % in the IP. The
sharp deterioration in the profitability in 1999 can be
attributed to a decrease in the sales prices of
the
Community industry under the pressure of low import
prices, combined with an increase in its costs. The slight
improvement of
the Community
the profitability of
industry in the IP was due to a moderate increase in its
sales prices.

(215) Thus, despite an overall improvement of the situation of
the Community industry over the period considered, its
situation still seems difficult, notably in terms of profit-
ability. In this context, any change in the commercial
the product concerned may have a
environment of

(216)

In view of the above, it is considered that the continua-
the measures would allow the Community
tion of
industry both to maintain its share of the Community
market and to restore its profitability. The continuation
of the measures would therefore be in the interest of the
Community industry.

(c) Impact of the expiry of the measures

(217) Should the anti-dumping measures be allowed to expire,
imports from the
it is expected that the volume of
thus eroding the
increase,
countries concerned will
market share of the Community industry. Furthermore,
the prices of these imports are likely to exert a down-
ward pressure on the Community industry's prices
which will result in a deterioration of its profitability.

2. Interest of the importers/traders

(218) At the outset of the investigation questionnaires were
sent to 33 importers/traders. No response was received
regarding the review investigations on the measures in
place on imports originating in China, Korea, Malaysia,
Singapore, and Thailand. However,
responses were
received from three importers/traders in the invest-
igation regarding imports from Turkey, representing
around 9 % of the imports originating in the countries
concerned and in other
into the
Community in the IP.

third countries

(219) The arguments raised by these importers related mostly
to the limited availability of small screen CTVs with a
limited number of features in the Community. It was
argued that the majority of Community production is in
branded CTVs with a high number of
features thus
commanding higher prices, whereas no-brand CTVs
with limited features are mostly imported from third
countries. Thus, it was argued that the continuation of
measures would limit the access of importers and also of
consumers to these CTVs.

(220) The investigation revealed that although a large part of
Community production is in branded CTVs with a large
number of features, a certain production of non-branded
CTVs by both the Community industry and other
Community producers was
a
substantial part of
including non-
branded CTVs, into the Community are not covered by
anti-dumping measures and thus the continuation of
measures on imports of CTVs originating in the coun-
tries concerned would not significantly limit the avail-
ability of non-branded CTVs with a limited number of
features. Finally, substantial price competition exists
among Community producers themselves.

found. Furthermore,

imports of CTVs,

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(221)

In view of the above,
continuation of
would significantly limit
importers/traders to certain types of CTVs.

it cannot be argued that the
the anti-dumping measures in place
the access of Community

K. ANTI-DUMPING MEASURES

3. Interest of the consumer

(222) At

the outset of

the investigation the Commission
services informed the European Consumers Organisation
(BEUC) of the initiation of the investigation and invited
it to provide comments on the likely effects of the
continuation or repeal of the anti-dumping measures in
place. No response was received from BEUC or from any
other consumer organisation. Thus, the examination of
the interest of consumers in the present investigation
was carried out on the basis of the facts available.

(223)

In the course of the previous investigations on CTVs it
was found that the impact on consumers of the exis-
tence of anti-dumping measures was limited given that
the anti-dumping measures in place did not restrict the
range of products available to consumers,
the large
number of players present in the Community market
and the large range of products which they offer.
Furthermore, its was also found that the large number of
players ensured a high level of price competition
between brands.

(224) The present investigation has not brought to light any
new facts or arguments that would invalidate the above
mentioned findings. Indeed, a large number of players
continue to be active in the CTV market and thus the
range of products available to the consumer is very
large. Furthermore, substantial price competition takes
place between brands. This price competition is evident
in the price erosion suffered by the simplest CTV models
(14-inch CTVs) where the competition is more acute.

(225)

It is therefore concluded that the continuation of the
anti-dumping measures in place is not against the inter-
ests of consumers.

(228)

In view of the findings as described above and in order
to adequately reflect in particular changes in the pricing
behaviour of exporters it is considered appropriate to
maintain the same level of anti-dumping duties for
China and Thailand, and to modify the level of the
applicable anti-dumping duties for Korea and Malaysia.

it

(229) For the purpose of establishing the injury elimination
level
is considered appropriate to base it on an
amount sufficient to eliminate the injury found. In Regu-
lation (EC) No 710/95 the duty was based on the price
undercutting taking account of the fact that factors other
than the dumped imports appear to have contributed to
the injury to the Community industry and secondly that
on a world-wide basis this industry had for a number of
years realised no or extremely low profits.

(230) The Community industry argued that eliminating the
price undercutting found was insufficient to fully restore
the situation of the Community industry and allow it to
introduce new products. It requested that a minimum
profit rate of 10 % be used to calculate the injury elimi-
nation level, in line with that used in Regulation (EC) No
2584/98.

(231)

It should be noted that the profit margin to be used
when calculating the injury elimination level should be
the one that the Community industry could reasonably
reach in the absence of dumping. It is therefore not
consistent with the Community institutions' practice to
use a profit margin which the Community industry
could not have achieved if there was no dumping. This
examination should be based on the information relating
to the relevant investigation period and may thus be
different
from that used in a previous proceeding
covering the same product but relating to a different
investigation period, such as is the case with Regulation
(EC) No 2584/98.

4. Conclusions on the Community interest

(226) On the basis of the above it is concluded that there are
no compelling reasons on the grounds of Community
interest against the continuation of the anti-dumping
measures.

(232)

J. DETERMINATION IN RESPECT OF SINGAPORE

(227)

In view of the findings in recitals 192 to 196, the
anti-dumping measures
in place regarding imports
originating in Singapore should be allowed to lapse.

Information available to the Commission and relating to
the IP showed a number of factors which lead to the
conclusion that it was appropriate in the context of the
current investigations to base injury elimination on the
level of price undercutting. Firstly, as stated in recital
137, CTVs are a mature product whose prices are regu-
larly eroded, thus leading to relatively low levels of
profitability. Secondly, as stated in recital 161, during
the IP imports from other third countries, to which no
dumping was attributable,
increased substantially, at
prices which could have also contributed to the low
level of profitability of the Community industry. Finally,
profitability levels of other CTV producers world-wide
are in line with those of the Community industry.

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(233)

In view of the above, it is considered appropriate to continue to base the injury elimination level on
the amount sufficient to eliminate price undercutting. In the case of Thomson Television Thailand,
given its lack of exports to the Community of CTVs originating in Thailand during the IP, it is
considered appropriate to maintain the rate of the anti-dumping duty imposed by Regulation (EC)
No 710/95. The rate of the duties, based on the dumping margin or on the undercutting margin
where the latter was found lower than the dumping margin, would be as follows:

C h i n a

Vestel Elektronik Sanayi ve Ticaret AS
All other exporters

24,5 % (CTVs assembled in Turkey)
44,6 %

K o r e a

Beko Elektronik AS
Thomson Television (Thailand) Co. Ltd
All other exporters

12,3 % (CTVs assembled in Turkey)
0 % (CTVs assembled in Thailand)
15,0 %

M a l a y s i a

Beko Elektronik AS
Thomson Television (Thailand) Co. Ltd
All other exporters

18,2 % (CTVs assembled in Turkey)
0 % (CTVs assembled in Thailand)
25,1 %

T h a i l a n d

Thomson Television (Thailand) Co. Ltd
All other exporters

3 %
29,8 %.

(234) 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 country-wide
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’.

(235) 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.

L. UNDERTAKINGS

(236) Seven Chinese companies offered a joint undertaking in conjunction with the China Chamber of
Commerce for Import and Export of Machinery and Electronic Products (CCCME) within the
meaning of Article 8(1) of the basic Regulation. The undertaking offer was supported by the Chinese
authorities. The elimination of the injurious effect of dumping is achieved by two means: first, a
price undertaking covering imports up to an agreed volume threshold, and second an ad valorem duty
levied on imports over and above that threshold. The CCCME will also provide the Commission with
regular and detailed information concerning the exports to the Community of the companies
presenting the joint undertaking, meaning that the undertaking can be monitored effectively by the
Commission. In addition, the support given by the Chinese authorities is such that the risk of
circumvention of the undertaking is minimised.

(1) European Commission

Directorate-General Trade
Directorate B
B-1049 Brussels.

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(237)

In view of this, the joint undertaking offered is therefore
considered acceptable and the companies concerned and
the CCCME have been informed of the essential facts,
considerations and obligations upon which acceptance is
based.

(241)

Importers shall be informed about the consequences of
non-cooperation or failure to submit correct informa-
tion when the customs authorities determine the origin
of the CTVs, i.e. the use of best facts available with the
consequence that the result may be less favourable than
if they had cooperated. Importers shall be informed in
case information submitted is not accepted and they
shall be given an opportunity to provide further expla-
nations,

(238) To further enable the Commission to monitor effectively
the compliance of the companies with their joint under-
taking, when the request for release for free circulation is
presented to the relevant customs authority, exemption
from the anti-dumping duty shall be conditional on the
presentation of a commercial invoice containing at least
the elements listed in the Annex I, and a certificate
issued by the China Chamber of Commerce for Import
and Export of Machinery and Electronic Products
(CCCME) containing the elements of Annex II. This level
of
information is also necessary to enable customs
authorities to ascertain with sufficient precision that
shipments correspond to the commercial documents.
Where no such invoice is presented, or when it does not
correspond to the product presented to customs, the
appropriate rate of anti-dumping duty will
instead be
payable.

(239)

It should be noted that a breach or withdrawal of the
undertaking or a suspected breach by any of the compa-
nies concerned or the CCCME shall be considered as a
breach of the undertaking by all signatories, and an
anti-dumping duty may be imposed, pursuant to Article
8(9) and (10) of the basic Regulation.

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on
imports of colour television receivers with a diagonal screen
size of more than 15,5 cm, whether or not combined in the
same housing with a radio broadcast receiver and/or clock,
other than those incorporating a modem and a computer
and falling within CN codes
operating system (CTVs)
8528 12 52*11),
code:
ex 8528 12 52
ex 8528 12 54,
ex 8528 12 58,
ex 8528 12 56,
ex 8528 12 62 (TARIC code: 8528 12 54*10, 8528 12 56*10,
8528 12 58*10, 8528 12 62*11 and 8528 12 62*92) and
ex 8528 12 66 (TARIC code: 8528 12 66*10), and originating
in Malaysia, Thailand, the People's Republic of China and the
Republic of Korea.

(TARIC

The rate of

2.
Community-frontier price, before duty, shall be as follows:

the duty applicable to the net,

free-at-

M. OTHER PROVISIONS

(240)

In order to ensure an effective collection of the duty and
taking account of the findings of the investigation that
in most cases the origin of the CTV is the same as the
importers should be
origin of the cathode ray tube,
asked to declare the origin of the cathode ray tube. If the
latter originates
the People's
Republic of China or the Republic of Korea and the CTV
originates in a country other than the country of origin
of the cathode ray tube, the importer shall be asked to
submit a separate declaration of origin issued by the
final producer.

in Malaysia, Thailand,

Country

Malaysia

Thailand

People's Republic of China

Republic of Korea

Duty
(%)

25,1

29,8

44,6

15,0

TARIC additional
code

8900

8900

8900

8900

with the exception of imports which are manufactured by the
following companies, which shall be subject to the following
rate of the duty:

a) CTVs originating in Malaysia manufactured by:

Thomson Television (Thailand) Co. Ltd Pathumthani,
Thailand

Beko Elektronik AS, Beylikduzu Mevkii, 34901 B.
Cekmece Istanbul, Turkey and its related export sales
company Ram Dis Ticaret, Buyukdere Caddesi 101, Meci-
diyekoy, Istanbul, Turkey

Duty
(%)

0

18,2

TARIC additional code

8815

A281

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Duty
(%)

0

12,3

TARIC additional code

8815

A281

24,5

A282

b) CTVs originating in the Republic of Korea manufactured

by:

Thomson Television (Thailand) Co. Ltd Pathumthani,
Thailand

Beko Elektronik AS, Beylikduzu Mevkii, 34901 B.
Cekmece Istanbul, Turkey and its related export sales
company Ram Dis Ticaret, Buyukdere Caddesi 101, Meci-
diyekoy, Istanbul, Turkey

c) CTVs originating in the People's Republic of China

manufactured by:

Vestel Elektronik Sanayi ve Ticaret AS, Ambarli Petrol
Ofisi Dolum Tesisleri Yolu Avcilar, Istanbul, Turkey and
its related export sales companis:

i) Vestel Dis Ticaret AS, Ambarli Petrol Ofisi Dolum

Tesisleri Yolu Avcilar, Istanbul, Turkey

ii) Vestel Dis Ticaret AS Ege Serbest Bolge SB, Akcay
Cad Gunduz Sokak 144/1, Gaziemir, Izmir, Turkey
iii) Vestel Bilisim Teknolojileri Sanayi ve Ticaret AS,
Ambarli Petrol Ofisi Dolum Tesisleri Yolu Avcilar,
Istanbul, Turkey

iv) Vestel Komunikasyon Sanayi ve Ticaret AS, Sehit
Fethibey Cad. 116/301 Kat: 3 20157 Pasaport,
Izmir, Turkey.

d) CTVs originating in Thailand manufactured by:

Thomson Television (Thailand) Co. Ltd Pathumthani,
Thailand

3,0

8815

3.

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

Article 2

1.
Upon presentation of the customs declaration for release into free circulation to the Member State's
customs authority, the importer shall declare the origin of the cathode ray tube incorporated in the CTV. In
cases where the cathode ray tube originates in Malaysia, Thailand, the People's Republic of China or the
Republic of Korea and the CTV originates in a country other than the country of origin of the cathode ray
tube, the importer shall also submit a declaration of origin issued by the final producer of the CTV in
conformity with the requirements in Annex III.

2.
Should a subsequent investigation by the customs authority of a Member State or the Commission of
the European Communities reveal that any declaration of origin in the customs declaration for release into
free circulation in the Community was incorrect or if a party involved in the determination of origin refuses
access to or otherwise does not provide the information or documentation necessary for the determination
of the non-preferential origin of the CTV, its origin may be determined by the competent authorities on the
basis of the best facts available. Where it is found that any interested party has supplied false or misleading
information, the information shall be disregarded and use may be made of facts available. Interested parties
should be made aware of the consequences of non-cooperation.

3. Where the information submitted by an interested party in the context of this Article is not ideal in all
respects it should nevertheless not be disregarded, provided that any deficiencies are not such as to cause
undue difficulty in arriving at a reasonably accurate finding and that the information is appropriately
submitted in good time and is verifiable, and that the party has acted to the best of its ability.

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If evidence or information is not accepted, the supplying party shall be informed forthwith of the
4.
reasons therefor and shall be granted an opportunity to provide further explanations within the time limit
specified. If the explanations are considered unsatisfactory, the reasons for rejection of such evidence or
information shall be disclosed to the parties concerned prior to any final decision being taken. The final
decision shall also contain a statement of reasons.

If a determination of origin is based on the facts available, it shall, where practicable and with due
5.
regard to the time limits of
the investigation, be checked by reference to information from other
independent sources which may be available or information obtained from other interested parties during
the investigation.

If an interested party does not cooperate, or cooperates only partially, so that relevant information is

6.
thereby withheld, the result may be less favourable to the party than if it had cooperated.

Article 3

1.
Imports under one of the following TARIC additional codes which are produced and directly exported
(i.e. shipped and invoiced) by a company named below to a company in the Community acting as an
importer shall be exempted from the anti-dumping duty imposed by Article 1 provided that they are
imported in conformity with paragraph 2.

Country of origin

Company

TARIC additional
code

People's Republic of China

Haier Electrical Appliances Corporation Ltd, Haier
Road 1, Haier Industrial Park, Qingdao, Shandong,
China

People's Republic of China

Hisense Import & Export Co., Ltd, 11 Jiangsi Road,
Qingdao 266071, China

People's Republic of China

Konka Group Co., Ltd, Overseas Chinese Town,
Shenzhen 518053, China

People's Republic of China

Sichuan Changhong Electric Co. Ltd, 35 East Mianxin
Road, High Tech Park, Mianyang, Sichuan, China

People's Republic of China

People's Republic of China

Skyworth Multimedia International
(Shenzhen) Co.,
Ltd, — 4F,425 Ba Gua Ling Ind. District, Shenzhen,
China

TCL King Electrical Appliances (HuiZhou) Co., Ltd —
19, ZhongKai Development Zone Huizhou, Guang-
dong, China

People's Republic of China

Xiamen Overseas Chinese Electronic Co, Ltd, 22 Huli
Dadao, Xiamen SEZ, Xiamen, Fujan Province, China

A291

A292

A293

A294

A295

A296

A297

2.

Imports mentioned in paragraph 1 shall be exempted from the duty on condition that:

(a) a commercial invoice containing at least the elements listed in the Annex I, as well as a certificate issued
by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products
(CCCME) containing at least the elements listed in the Annex II are presented to Member States customs
authorities upon presentation of the declaration for release into free circulation; and

(b) the goods declared and presented to customs correspond precisely to the description on the commercial

invoice and the certificate.

The proceeding regarding imports of the product described in Article 1(1) and originating in Singapore is
hereby terminated.

Article 4

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

Article 5

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

Done at Brussels, 14 August 2002.

For the Council

The President

P. S. MØLLER

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ANNEX I

Necessary information for commercial invoices accompanying sales made subject to the undertaking

1. The heading ‘COMMERCIAL INVOICE ACCOMPANYING GOODS SUBJECT TO AN UNDERTAKING’.

2. The name of the company mentioned in Article 2.1 issuing the commercial invoice.

3. The commercial invoice number.

4. The number of the relevant Undertaking Certificate.

5. The date of issue of the commercial invoice.

6. The TARIC additional code under which the goods on the invoice are to be customs cleared at the Community fron-

tier.

7. The exact description of the goods, including:

— the product code number (PCN),

— the technical specification of the goods (including size in cm, format of the screen, existence of the options tele-

text and/or stereo),

— the company product code number (CPC) (if applicable),

— CN code,

— quantity (to be given in units).

8. The description of the terms of the sale, including:

— price per unit,

— the applicable payment terms,

— the applicable delivery terms,

— country of destination and port of entrance into the EU,

— total discounts and rebates,

— country of origin.

9. Name of the company acting as an importer to which the invoice is issued directly by the company.

10. The name of the official of the company that has issued the invoice and the following signed declaration:

‘I, the undersigned, certify that the sale for direct export to the European Community of the goods covered by this
invoice is being made within the scope and under the terms of the undertaking offered by [company], and accepted
by the European Commission through Decision 2002/683/EC (1). I declare that the information provided in this
invoice is complete and correct.’

(1) See page 42 of this Official Journal.

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ANNEX II

Necessary information for the certificate of CCCME accompanying sales made subject to the undertaking

1. The name, address, fax and telephone number of the China Chamber of Commerce for Import and Export of

Machinery and Electronic Products (CCCME).

2. The name of the company mentioned in Article 3.1 issuing the commercial invoice.

3. The commercial invoice number.

4. The date of issue of the commercial invoice.

5. The TARIC additional code under which the goods on the invoice are to be customs cleared at the Community fron-

tier.

6. The exact description of the goods, including:

— the product reporting code (PRC),

— the technical specification of the goods (including size in cm, format of the screen, existence of the options tele-

text and/or stereo),

— the company product code number (CPC) (if applicable),

— CN code.

7. The precise quantity in units exported.

8. The number of the certificate.

9. The name of the official of CCCME that has issued the certificate and the following signed declaration:

‘I, the undersigned, certify that this license is given for direct export to the European Community of the goods
covered by the commercial invoice accompanying sales made subject to the undertaking and that the license is
issued within the scope and under the terms of the undertaking offered by [company] and accepted by the European
Commission through Decision 2002/683/EC. I declare that the information provided in this certificate is correct and
that the quantity covered by this certificate is not exceeding the threshold of the undertaking.’

10. Date.

11. The seal of CCCME.

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ANNEX III