Proposal for a Council Regulation amending Commission Decision 283/2000/ECSC and Council Regulations (EC) No 584/96, (EC) No 763/2000 and (EC) No 1514/2002 with regard to the anti-dumping measures applicable to certain hot rolled coils and to certain tube and pipe fittings, of iron or steel
Date: 2003-04-02
Institutions: European Commission
Subjects: anti-dumping duty, import, originating product, piping, third country

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.4.2003
COM(2003) 126 final

Proposal for a

COUNCIL REGULATION

amending Commission Decision 283/2000/ECSC and Council
Regulations (EC) No 584/96, (EC) No 763/2000 and (EC) No 1514/2002 with regard to
the anti-dumping measures applicable to certain hot rolled coils and to certain tube and
pipe fittings, of iron or steel

(presented by the Commission)

EXPLANATORY MEMORANDUM

By Regulation  (EC)  No 452/2003 of 6 March 2003, the Council enabled  action  to  be  taken
with  a  view  to  ensuring  that  a  combination  of  safeguard  tariff  measures  and  anti-dumping
and/or anti-subsidy measures does not have an effect greater than that intended or desirable in
terms of the Community’s trade defence policy and objectives.

Anti-dumping  measures  are  in  force  in  relation  to  hot  rolled  coils  originating  in  Bulgaria,
South Africa and Serbia and Montenegro1, and tube and pipe fittings originating in the Czech
Republic,  Malaysia,  the  Republic  of  Korea,  Russia  and  Slovakia,  Croatia,  Thailand,  the
People’s Republic of China and those consigned from Chinese Taipei2.

On  27  September  2002,  the  Commission  adopted  safeguard  tariff  measures  with  respect  to
certain  steel  products,  including  hot  rolled  coils  and  tube  and  pipe  fittings.  Those  measures
take the form of safeguard additional duty payable on imports made in excess of the relevant
tariff quotas (hereinafter ‘safeguard duty’).

It  is  considered  appropriate  to  grant  total  or  partial  exemption  from  anti-dumping  duty  on
imports  which  are  also  subject  to  safeguard  duty,  so  that,  where  both  anti-dumping  and
safeguard duty would normally be payable, if the  anti-dumping duty is less than or equal to
the safeguard duty, the anti-dumping duty will not apply, if the anti-dumping duty is greater
than  the  safeguard  duty,  only  that  part  of  the  anti-dumping  duty  which  is  in  excess  of  the
amount of the safeguard duty should be payable.

Where  the  Commission  has  accepted  a  minimum  price  undertaking  and  the  Council  has
wholly  or  partially  exempted  imports  pursuant  to  such  undertakings  from  the  anti-dumping
duty,  the  companies  concerned  should  have  the  opportunity  to  benefit  in  a  similar  manner,
either  by  exemption  from  the  requirement  to  respect  the  minimum  price  or  from  a  reduced
minimum price where those imports are also subject to payment of safeguard duty.

The  Commission  has  informed  all  interested  parties  that  it  intends  to  avoid  undesirably
onerous effects of the simultaneous application of anti-dumping measures and the safeguard
duty, and their oral and written comments have been duly taken into account.

It  is  therefore  proposed  that  the  Council  adopt  the  present  proposal  for  a  Regulation
specifying in relation to hot rolled coils originating in Bulgaria, South Africa, and Serbia and
Montenegro, and fittings originating in Thailand, the Czech Republic, Malaysia, the Republic
of Korea, Russia  and Slovakia, the People’s  Republic  of  China,  or  consigned  from  Chinese
Taipei,  the  applicable  rates  of  anti-dumping  duty  where  those  imports  are  also  subject  to
safeguard duty, and making provision in relation to price undertakings.

1

2

Formerly the Federal Republic of Yugoslavia.
Formerly referred to as Taiwan.

2

                                                
Proposal for a

COUNCIL REGULATION

amending Commission Decision 283/2000/ECSC and Council
Regulations (EC) No 584/96, (EC) No 763/2000 and (EC) No 1514/2002 with regard to
the anti-dumping measures applicable to certain hot rolled coils and to certain tube and
pipe fittings, of iron or steel

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 452/2003 of 6 March 20033

Having  regard  to  the  proposal  made  by  the  Commission  after  consultation  of  the  Advisory
Committee established by Article 15 of Council Regulation (EC) No 384/964,

Whereas:

A.

(1)

(2)

3

4

5

6

7

8

9

10

Existing measures

The  Commission,  by  Decision  No  283/2000/ECSC  of  4  February  20005,  imposed  a
definitive anti-dumping duty on certain flat rolled products of iron or non-alloy steel,
of a width of 600 mm or more, not clad, plated or coated, in coils, not further worked
than  hot-rolled  (currently  classifiable  under  CN  codes  7208  10  00,  7208  25  00,
7208 26 00, 7208 27 00, 7208 36 00, 7208 37 10, 7208 37 90, 7208 38 10, 7208 38 90,
7208 39 10, 7208 39 90 and hereinafter referred to as ‘hot rolled coils’) originating in
Bulgaria, India, Taiwan6, South Africa and the Federal Republic of  Yugoslavia7, and
accepted  certain  undertakings.  Pursuant  to  Article  1(1)  of  Council  Regulation  (EC)
No 963/2002  of  3  June  20028,  such  anti-dumping  measures  adopted  under  Decision
No 2277/96/ECSC remain in force notwithstanding the expiry of the ECSC Treaty9.

The Council, by Regulation No 584/9610, imposed anti-dumping measures on certain
tube and pipe fittings (other than cast fittings, flanges and threaded fittings), of iron or
steel  (not  including  stainless  steel),  with  a  greatest  external  diameter  not  exceeding
609.6mm,  of  a  kind  used  for  butt-welding  or  other  purposes,  currently  classifiable
under  CN  codes  ex  7307  93  11  (TARIC  code  7307  93  11  91  and  7307  93  11  99),

OJ L 69, 13.3.2003, p. 8.
OJ L 56, 6.3.1996, p.1; last amended by Regulation (EC) No 1972/2002 (OJ L 305, 7.11.2002, p. 1).
OJ L 31, 5.2.2000, p. 15 last amended by Decision No 1043/2002/ECSC (OJ L 157, 15.6.2002, p. 45).
Chinese Taipei is referred to as Taiwan in that Regulation.
Hereinafter referred to as Serbia and Montenegro.
OJ  L  149,  7.6.2002,  p.3  as  amended  by  Council  Regulation  (EC)  No  1310/2002  of  19  July  2002
(OJ L 192, 20.7.2002, p.9.).
But  are  henceforth  subject  to  Council  Regulation  (EC)  No  384/96  (OJ  L  56,  6.3.1996,  p.  1)  last
amended by Regulation (EC) No 1972/2002 (OJ L 305, 7.11.2002, p. 1).
OJ L 84, 3.4.1996, p. 1, and amended by Regulation (EC) No 1592/2000 (OJ L 182, 21.7.2000, p. 1).

3

                                                
ex 7307  93  19  (TARIC  code  7307  93  19  91  and  7307  93  19  99),  ex  7307  99  30
(TARIC  code  7307  99  30  92  and  7307  99  30  98)  and  ex  7307  99  90  (TARIC  code
7307 99 90 92 and 7307 99 90 98) (hereinafter referred to as ‘tube and pipe fittings’)
originating in Croatia, Thailand and the People’s Republic of China. The measures on
imports of tube and pipe fittings originating in China were extended to certain imports
of  tube  and  pipe  fittings  consigned  from  Taiwan11  pursuant  to  Regulation  (EC)
763/200012.  The  measures  in  relation  to  imports  originating  in  Croatia  have  since
expired13,  but  those  in  relation  to  imports  originating  in  Thailand  and  China,  as
extended to imports consigned from Chinese  Taipei, remain in force by virtue of the
initiation  of  an  expiry  review14,  pursuant  to  Article  11(2)  of  Regulation  (EC)
No 384/9615.  The  Council,  by  Regulation  (EC)  No  1514/200216  also  imposed  anti-
dumping  measures  on  imports  of  tube  and  pipe  fittings  originating  in  the  Czech
Republic, Malaysia, the Republic of Korea, Russia and Slovakia.

By  Commission  Regulation  (EC)  No  1694/200217  of  27  September  2002,  the
Commission adopted safeguard tariff measures with respect to certain steel products,
including hot rolled coils and tube and pipe fittings which were already subject to the
anti-dumping  measures  aforementioned.  In  accordance  with  Article  5  of  that
Regulation,  the  tariff  quotas  and  safeguard  additional  duty  (‘safeguard  duty’)  in
relation  to  hot  rolled  coils  do  not  apply  to  India  or  Chinese  Taipei,  whilst  the  tariff
quotas and safeguard duty in relation to tube and pipe fittings do not apply to China.

The  above-mentioned  anti-dumping  measures  take  the  form  of  either  a  duty  or  an
undertaking.  The  safeguard  measures  take  the  form  of  tariff  quotas  applicable  for
specified periods, in excess of which a safeguard duty must be paid.

Once the tariff quotas established under the safeguard measures are exceeded, both the
safeguard duty and the anti-dumping duty would become payable on the same imports,
or,  where  price  undertakings  have  been  accepted,  the  safeguard  duty  would  become
payable in addition to the obligation to observe such price undertakings.

The Council, by Regulation (EC) No 452/2003 of 6 March 200318, considered that the
combination of anti-dumping or anti-subsidy measures with safeguard measures on the
same  product  could  have  an  effect  greater  than  that  intended  in  terms  of  the
Community’s  trade  defence  policy  and  objectives  and  could  place  an  undesirably
onerous  burden  on  certain  exporting  producers  seeking  to  export  to  the  Community.
As  a  result,  the  Council  introduced  specific  provisions  to  enable  the  Community
institutions,  where  they  consider  it  appropriate,  to  take  action  to  ensure  that  a
combination of anti-dumping or anti-subsidy measures with safeguard tariff measures
on the same product does not have such an effect.

Hereinafter referred to as Chinese Taipei.
OJ L 94, 14.4.2000, p. 1, as amended by Regulation (EC) No 2314/2000 (OJ L 267, 20.10.2000, p. 15).
OJ C 104, 4.4.2001, p. 7.
OJ C 103, 3.4.2001, p. 5.
OJ  L  56,  6.3.1996,  p.1.  Regulation  as  last  amended  by  Regulation  (EC)  No  1972/2002  (OJ  L  305,
7.11.2002, p. 1).
OJ L 228, 24.8.2002, p. 1.
OJ L 261, 28.9.2002, p. 1.
OJ L 69, 13.3.2003, p. 8.

4

(3)

(4)

(5)

(6)

11

12

13

14

15

16

17

18

                                                
B.

(7)

(8)

(9)

(10)

Modalities

In  the  present  case,  whilst  there  is  some  uncertainty  as  to  if  and  when  each  of  the
safeguard tariff quotas imposed by Regulation (EC) No 1694/2002 will be exhausted,
it is possible that imports of hot rolled coils or tube and pipe fittings which are subject
to anti-dumping duties or undertakings will also become subject  to the payment of a
safeguard duty.

In this instance, it is considered that the combination of anti-dumping measures with
the safeguard duty could have an effect greater than that intended or desirable in terms
of  the  Community’s  trade  defence  policy  and  objectives.  In  particular,  such  a
combination  could  place  an  undesirably  onerous  burden  on  certain  exporting
producers seeking to export to the Community, which may have the effect of denying
them  access  to  the  Community  market.  The  Council  therefore  considers  that  it  is
appropriate  to  amend  the  existing  anti-dumping  measures  on  imports  of  hot-rolled
coils and on imports of tube and pipe fittings.

In  these  circumstances,  and  in  order  to  ensure  legal  certainty  for  the  economic
operators  concerned,  it  is  considered  appropriate  to  specify  for  these  cases  the  anti-
dumping measures which should apply in the event that the safeguard tariff quotas are
exhausted or in case the benefit of the quota is not requested or is not granted.

In those cases where both an anti-dumping duty and a safeguard duty would normally
be payable and where the anti-dumping duty is less than or equal to the amount of the
safeguard  duty,  it  is  considered  appropriate  that  no  anti-dumping  duty  should  be
payable; where the anti-dumping duty is greater than the amount of the safeguard duty,
it  is  considered  appropriate  that  only  that  part  of  the  anti-dumping  duty  which  is  in
excess of the amount of the safeguard duty should be payable.

(11)

In those  cases  in  which a price  undertaking  had been accepted, the  Commission  and
those  price
the  companies  concerned  have  agreed  equivalent  reductions 
undertakings or, as the case may be, they have agreed that the obligation to observe a
minimum price will not apply when the safeguard duty is payable.

in 

C.

Procedure

(12) All parties directly  concerned,  i.e.  the  national  authorities  of  Bulgaria,  South  Africa,
Serbia and Montenegro, Thailand, Chinese Taipei, the Czech Republic, Malaysia, the
Republic  of  Korea,  Russia  and  Slovakia;  relevant  exporting  producers  in  those
countries and the Community industry, received disclosure of the proposed course of
action described above, and were given an opportunity to comment.

(13) Responses were received from a number of interested parties. All their arguments have
been  duly  considered.  Certain  parties  fully  supported  the  Community  institutions’
intended  course  of  action.  Other  parties  argued  that  for  those  imports  to  which  the
safeguard  measures  apply,  anti-dumping  measures  should  not  be  imposed,  or,  if
already imposed, they should be suspended or  repealed. Others argued  that for those
imports  to  which  anti-dumping  measures  apply,  the  safeguard  measures  should  not
apply.

5

(14)

(15)

In  relation  to  the  first  argument,  it  is  considered  that  it  is  only  when  there  is  a
combination of anti-dumping measures with the safeguard duty that an effect  greater
than that intended or desirable could arise. Indeed, it is only in that circumstance that
certain exporting producers are subject to  the burden of both anti-dumping measures
and safeguard duty on the same import. Therefore, it is considered that it would only
be appropriate to take action where safeguard duties become payable.

In relation to the second argument, it must be remembered that anti-dumping measures
apply  only  to  imports  of  hot  rolled  coils  and  tube  and  pipe  fittings  originating  in
certain countries. Therefore, if safeguard measures were not applied to imports of hot
rolled coils and  tube  and pipe  fittings  subject  to  anti-dumping  measures,  they  would
only apply to some imports of those products originating in some countries but not in
others.  It is  considered  that  this  would  be  contrary  to  the  Community’s  international
obligations which require that safeguard measures shall be applied to a product being
imported irrespective of its source.

(16)

Therefore,  having  duly  taken  account  of  the  submissions  made  by  the  parties
concerned,  it  is  considered  that  neither  of  the  alternative  solutions  suggested  by  the
parties  concerned  should  be  adopted,  and  that  the  present  measures  are  the  most
appropriate  to  achieve  the  objective  of  avoiding  an  undesirably  onerous  burden  on
certain exporting producers seeking to export to the Community.

HAS ADOPTED THIS REGULATION:

Article 1

In  Commission  Decision  No  283/2000/ECSC,  in  Article  1,  the  following  paragraph  is
inserted –

“(2a) Notwithstanding paragraph (2),  where imports of the  product  concerned originating in
Bulgaria,  South  Africa  or  Serbia  and  Montenegro  are  subject  to  payment  of  a  safeguard
additional duty pursuant to Article 1(3) of Regulation (EC) No 1694/2002, the rates of anti-
dumping  duty  for  products  manufactured  by  the  companies  listed  in  the  table  below
applicable to the free-at-Community-frontier price, before duty, shall be:

Country

Company

Bulgaria

All companies

South Africa

Iscor Limited, Roger Dyason
Road,  Pretoria  West,  and
Saldanha  Steel  (Pty)  Ltd.,
Private  Bag  X11,  Saldanha
7395

Rate  of  AD  duty  (%)  applicable  when
safeguard additional duty is payable

TARIC
additional
code

to
28.3.03

29.3.03
to
28.9.03

29.9.03
to
28.3.04

29.3.04
to
28.9.04

29.9.04
to
28.3.05

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

A999

A079

All other companies

20.3%

22.1%

22.1%

23.7%

23.7%

A999

All companies

0%

0%

0%

1.3% 1.3%”

Serbia and
Montenegro

6

Article 2

In  Council  Regulation  (EC)  No  584/96,  in  Article  1,  after  paragraph  (2),  the  following
paragraph is inserted–

“(2a) Notwithstanding paragraph (2), where imports of the product concerned from Thailand
are subject to payment of a safeguard additional duty pursuant to Article 1(3) of Regulation
(EC)  No  1694/2002,  the  rate  of  anti-dumping  duty  applicable  to  the  free-at-Community-
frontier price, before duty, shall be as follows:

Country

Company

Rate  of  AD  duty  (%)  applicable  when
safeguard additional duty is payable

TARIC
additional
code

to
28.3.03

29.3.03
to
28.9.03

29.9.03
to
28.3.04

29.3.04
to
28.9.04

29.9.04
to
28.3.05

Thailand

35.2% 37.6% 37.6% 39.7% 39.7%

8851

Except:

Thai Benkan Co. Ltd,
Prapadaeng Samutprakarn

0%

0%

0%

0%

0%”

A118

Article 3

In  Council  Regulation  (EC)  No  763/2000,  in  Article  1,  after  paragraph  (2),  the  following
paragraph is inserted–

“(2a)  Notwithstanding  paragraph  (1),  with  the  exception  of  those  fittings  produced  and
exported by the said Chup Hsin Enterprise Co. Ltd, Rigid Industries Co., Ltd and Niang Hong
Pipe Fittings Co., Ltd, where imports of fittings consigned from Chinese Taipei are subject to
payment  of  a  safeguard  additional  duty  pursuant  to  Article  1(3)  of  Regulation  (EC)
No 1694/2002,  the  rate  of  anti-dumping  duty  applicable  to  the  free-at-Community-frontier
price, before duty, shall be as follows:

Country

Company

Chinese
Taipei

All  (except  Chup  Hsin
Enterprise  Co.  Ltd,  Rigid
Industries  Co.,  Ltd  and
Niang  Hong  Pipe  Fittings
Co., Ltd)

Rate  of  AD  duty  (%)  applicable  when
safeguard additional duty is payable

TARIC
additional
code

to
28.3.03

29.3.03
to
28.9.03

29.9.03
to
28.3.04

29.3.04
to
28.9.04

29.9.04
to
28.3.05

34.9% 37.3% 37.3% 39.4% 39.4% A999

7

Article 4

In Council Regulation (EC) No 1514/2002, in Article 1, the following paragraph is inserted -

“(2a) Notwithstanding paragraph (2),  where imports of the product concerned  are subject to
payment  of  a  safeguard  additional  duty  pursuant  to  Article  1(3)  of  Regulation  (EC)  No
1694/2002,  the  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net,  free-at-
Community-frontier price, before duty, shall be as follows for the products manufactured by:

Country

Company

Rate  of  AD  duty  (%)  applicable  when
safeguard additional duty is payable

TARIC
additional
code

to
28.3.03

29.3.03
to
28.9.03

29.9.03
to
28.3.04

29.3.04
to
28.9.04

29.9.04
to
28.3.05

Czech
Republic

Mavet a.s., Trebic

All other companies

0%

0%

0%

0%

0%

0%

A323

1.1% 1.1%

3.2%

3.2%

A999

Malaysia

Anggerik Laksana Sdn Bhd,
Selangor Darul Ehsan

35.5% 37.9% 37.9% 40%

40%

A324

All other companies

51.3% 53.7% 53.7% 55.8% 55.8%

A999

Russia

All companies

19.6% 22%

22%

24.1% 24.1%

Republic
of Korea

All companies

20.3% 22.7% 22.7% 24.8% 24.8%

Slovakia

All companies

0%

0%

0%

0%

0%

A999

Article 5

This Regulation shall enter into force on the day following that of its publication in the

1.
Official Journal of the European Union .

2.

This Regulation shall expire on 28 March 2005.

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

3.
States.

Done at Brussels,

For the Council
The President

8