Proposal for a Council Regulation amending the anti-dumping measures imposed by Council Regulation (EC) No 1603/2000 on imports of ethanolamines originating in the United States of America
Date: 2003-01-15
Institutions: European Commission
Subjects: Council of the European Union, EC Regulation, United States, anti-dumping measure, import (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 15.1.2003
COM(2003) 2 final

Proposal for a

COUNCIL REGULATION

amending the anti-dumping measures imposed by
Council Regulation (EC) No 1603/2000 on imports of ethanolamines
originating in the United States of America

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 13 June 2002 a partial interim review limited to the form of the measure was initiated with
regard  to  anti-dumping  measures  imposed  by  Council  Regulation  (EC)  No  1603/2000  on
imports into the Community of ethanolamines originating in the United States of America.

The attached proposal for a Council Regulation is based on the findings of the investigation
with  regard  to  the  need  to  foresee  in  the  operative  part  of  Council  Regulation  (EC)  No
1603/2000 a clause for damaged goods.

It is therefore proposed that the Council adopt the attached proposal for a Council Regulation
which should be  published in the Official Journal  of  the  European  Communities  as  soon  as
possible.

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Proposal for a

COUNCIL REGULATION

amending the anti-dumping measures imposed by
Council Regulation (EC) No 1603/2000 on imports of ethanolamines
originating in the United States of America

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  Community1  (“basic
Regulation”), and in particular Article 11(3) thereof,

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

Whereas:

1.

Measures in force

A. PROCEDURE

(1) 

In  July  2000,  the  Council,  by  Regulation  (EC)  No  1603/20002,  imposed  definitive
anti-dumping  duties  on  imports  of  ethanolamines  originating  in  the  United  States  of
America (the “USA”). The duties took the form of a specific duty.

2.

Initiation

(2) 

(3) 

On  13  June  2002,  the  Commission  announced  by  a  notice  (“Notice  of  Initiation”)
published  in  the  Official  Journal  of  the  European  Communities3  the  initiation  of  a
partial  interim  review  of  the  anti-dumping  measures  applicable  to  imports  into  the
Community of ethanolamines originating in the USA.

The review was initiated on an  initiative  of  the Commission in order  to examine the
appropriateness of the measures in force. The current measure, i.e. a duty in the form
of  a  specific  duty,  does  not  cater  for  situations  in  which  imported  goods  have  been
damaged before entry into free circulation.

1

2

3

OJ L 56, 6.3.1996, p. 1, as last amended by Regulation (EC) No 1972/2002 (OJ L 305, 7.11.2002, p. 1).
OJ L 185, 25.7.2000, p. 1.
OJ C 140, 13.6.2002, p. 17.

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3.

Investigation

(4) 

(5) 

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

A  number  of  exporting  producers  in  the  country  concerned,  as  well  as  Community
producers  and  Community  importers/traders  made  their  views  known  in  writing.  All
parties  who  so  requested  within  the  set  above  time  limit  and  who  demonstrated  that
there were particular reasons why they should be heard were granted the opportunity
to be heard.

(6) 

The Commission sought and verified all the information  it  deemed necessary  for  the
purpose of a determination of the appropriateness of the measures in force.

B. RESULTS OF THE INVESTIGATION

(7) 

(8) 

(9) 

Article  145  of  Commission  Regulation  (EEC)  No  2454/93  of  2  July  19934  laying
down provisions for  the  implementation of the  Community  Customs Code5 foresees,
for the determination of the customs value, an apportioning of the price actually paid
or  payable  in  situations  where  goods  have  been  damaged  before  entry  into  free
circulation.

In order to avoid that an excessive amount of anti-dumping duty is levied, the specific
duty should, in case of damaged goods, be reduced by a percentage which corresponds
to the apportioning of the price actually paid or payable.

Community producers argued that the term “damaged” is vague and might be subject
to  wide  interpretations  that  could  lead  to  circumvention  practices  or  even  render  the
anti-dumping duties ineffective. In order to avoid circumvention, it was submitted that
whenever  the  customs  authorities  consider  a  good  to  be  damaged,  a  second,
independent expert opinion should be provided on the question of whether the goods
are damaged or not.

(10) 

It should be noted  that  the  valuation of  goods,  damaged  or  not,  is  carried  out  by  the
customs authorities according to the well-established rules set out by the Community
Customs  Code  that  do  not  allow  wide  interpretations  that  could  render  the  anti-
dumping  duty  ineffective.  In  view  of  these  established  rules,  there  is  no  need  for
specific provisions covering  goods subject  to anti-dumping measures. The  request to
introduce a mandatory second expert opinion is therefore rejected.

(11)  A  related  importer  submitted  that  no  anti-dumping  duty  should  be  imposed  if  a

product is damaged as it must not be considered a like product.

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5

OJ  L  253,  11.10.1993,  p.  1,  as  last  amended  by  Regulation  (EC)  No  444/2002  (OJ  L  68,  12.3.2002,
p. 11).
Council Regulation (EEC) No 2913/92 (OJ L 302, 19.10.1992, p. 1).

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(12) 

(13) 

In this respect, a product does not automatically cease to be a like product when it is
damaged. It may still have the same physical and chemical characteristics and be used
for the  same purposes, thereby possibly  inflicting  injury  to  the  Community  industry.
The argument is therefore rejected.

It  is  therefore  concluded  that  in  the  absence  of  any  substantiated  argument  from
interested  parties,  in  cases  where  goods  have  been  damaged  before  entry  into  free
circulation  and,  therefore,  the  price  actually  paid  or  payable  is  apportioned  for  the
determination of the customs value, the specific duty shall be reduced by a percentage
which corresponds to the apportioning of the price actually paid or payable,

HAS ADOPTED THIS REGULATION:

Article 1

The following paragraph shall be added to Article 1 of Council Regulation (EC) 1603/2000:

“4.  In  cases  where  goods  have  been  damaged  before  entry  into  free  circulation  and,
therefore,  the  price  actually  paid  or  payable  is  apportioned  for  the  determination  of  the
customs  value  pursuant  to  Article  145  of  Commission  Regulation  (EEC)  No  2454/93,  the
amount of the anti-dumping duty, calculated on the basis of the amounts set above, shall be
reduced by a percentage which corresponds to the apportioning of the price actually paid or
payable.”

Article 2

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

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

Done at Brussels,

For the Council
The President

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