Council Regulation (EC) No 778/2003 of 6 May 2003 amending Commission Decision No 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: 2003-05-06
Institutions: Council of the European Union
Subjects: anti-dumping duty, flat product, import, iron and steel product, piping, third country

8.5.2003

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Official Journal of the European Union

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 778/2003

of 6 May 2003

amending Commission Decision No 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,

(2)

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 452/2003 of 6
March 2003 on measures that the Community may take in
relation to the combined effect of anti-dumping or anti-subsidy
measures with safeguard measures (1),

Having regard to the proposal made by the Commission after
consultation of the Advisory Committee established by Article
15 of Council Regulation (EC) No 384/96 of 22 December
1995 on protection against dumped imports from countries
not members of the European Community (2),

Whereas:

A. EXISTING MEASURES

(1)

By Decision No 283/2000/ECSC (3),
the Commission
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, South Africa, Taiwan (4), and the Federal
Republic of Yugoslavia (hereinafter referred to as Serbia
and Montenegro), and accepted certain undertakings.
Pursuant to Article 1(1) of Regulation (EC) No 963/
2002 (5), such anti-dumping measures adopted under
Decision No 2277/96/ECSC remain in force notwith-
standing the expiry of the ECSC Treaty and shall be
governed by the provisions of Regulation (EC) No 384/
96 with effect from 24 July 2002.

(1) OJ L 69, 13.3.2003, p. 8.
(2) 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).

(3) OJ L 31, 5.2.2000, p. 15. Decision as last amended by Decision No

1043/2002/ECSC (OJ L 157, 15.6.2002, p. 45).

(4) Chinese Taipei is referred to as Taiwan in that Decision.
(5) OJ L 149, 7.6.2002, p. 3. Regulation as amended by Regulation

(EC) No 1310/2002 (OJ L 192, 20.7.2002, p. 9).

7307 99 30 92

(TARIC code
and

By Regulation (EC) No 584/96 (6), the Council 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 609,6 mm, of a kind
used for butt-welding or other purposes, currently classi-
fiable under CN codes ex 7307 93 11 (TARIC code
7307 93 11 91 and 7307 93 11 99),
ex 7307 93 19
(TARIC code 7307 93 19 91 and 7307 93 19 99),
ex 7307 99 30
and
7307 99 30 98)
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, Thai-
land 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 Taiwan (hereinafter referred to
as Chinese Taipei) pursuant to Regulation (EC) No 763/
2000 (7). The measures in relation to imports originating
in Croatia have since expired (8), 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 review (9),
pursuant to Article 11(2) of Regulation (EC) No 384/96.
The Council, by Regulation (EC) No 1514/2002 (10), 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.

(3)

By Commission Regulation (EC) No 1694/2002 (11), the
Commission adopted safeguard tariff measures with
including hot-rolled
respect
coils and tube and pipe fittings which were already
subject to the aforementioned anti-dumping measures.

to certain steel products,

(6) OJ L 84, 3.4.1996, p. 1. Regulation as amended by Regulation (EC)

No 1592/2000 (OJ L 182, 21.7.2000, p. 1).

(7) OJ L 94, 14.4.2000, p. 1. Regulation as amended by Regulation

(EC) No 2314/2000 (OJ L 267, 20.10.2000, p. 15).

(8) OJ C 104, 4.4.2001, p. 7.
(9) OJ C 103, 3.4.2001, p. 5.
(10) OJ L 228, 24.8.2002, p. 1.
(11) OJ L 261, 28.9.2002, p. 1.

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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 abovementioned 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.

(9)

(10)

(4)

(5)

(6)

(7)

(8)

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 under-
takings.

By Regulation (EC) No 452/2003 (1), the Council consid-
ered 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.

B. 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
the Community's trade defence policy and
terms of
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.

(1) OJ L 69, 13.3.2003, p. 8.

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 quota is not requested or is not
the benefit of
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 appro-
priate 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 has been
accepted, the Commission and the companies concerned
have agreed equivalent reductions in those price under-
takings 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.

C. PROCEDURE

(12) All parties directly concerned, namely the national
authorities of Bulgaria, South Africa, Serbia and Monte-
the Czech Republic,
negro, Thailand, Chinese Taipei,
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)

(14)

Responses were received from a number of interested
parties. All their arguments have been duly considered.
Certain parties fully supported the Community institu-
tions'
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.

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 produ-
cers are subject to the burden of both anti-dumping
measures and safeguard duty on the same import. There-
fore, it is considered that it would only be appropriate
to take action where safeguard duties become payable.

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(15)

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 consid-
ered 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

The following paragraph shall be inserted in Article 1 of Decision No 283/2000/ECSC:

Notwithstanding paragraph 2, where imports of the product concerned originating in Bulgaria,
‘2a.
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 net, free-at-Community-
frontier price, before duty, shall be:

Country

Company

Rate of AD duty applicable when safeguard additional duty is
payable

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

TARIC
additional
code

Bulgaria

All companies

0 %

0 %

0 %

0 %

0 %

A999

South
Africa

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

0 %

0 %

0 %

0 %

0 %

A079

All other companies

20,3 %

22,1 %

22,1 %

23,7 %

23,7 %

A999

Serbia and
Montenegro

All companies

0 %

0 %

0 %

1,3 %

1,3 %

(*) OJ L 261, 28.9.2002, p. 1.’

Article 2

The following paragraph shall be inserted in Article 1 of Regulation (EC) No 584/96:

‘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 net, free-at-Community-frontier price, before

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duty, shall be as follows:

Country

Company

Rate of AD duty applicable when safeguard additional duty is
payable

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

TARIC
additional
code

Thailand

35,2 %

37,6 %

37,6 %

39,7 %

39,7 %

8851

Except:
Thai
Benkan Co.
Prapadaeng Samutprakarn

Ltd,

(*) OJ L 261, 28.9.2002, p. 1.’

0 %

0 %

0 %

0 %

0 %

A118

Article 3

The following paragraph shall be inserted in Article 1 of Regulation (EC) No 763/2000:

‘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 addi-
tional duty pursuant to Article 1(3) of Regulation (EC) No 1694/2002 (*), the rate of anti-dumping
duty applicable to the net, free-at-Community-frontier price, before duty, shall be as follows:

Rate of AD duty applicable when safeguard additional duty is
payable

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

TARIC
additional
code

34,9 %

37,3 %

37,3 %

39,4 %

39,4 %

A999

Country

Company

Chinese
Taipei

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

(*) OJ L 261, 28.9.2002, p. 1.’

Article 4

The following paragraph shall be inserted in Article 1 of Regulation (EC) No 1514/2002:

Notwithstanding paragraph 2, where imports of the product concerned are subject to payment
‘2a.
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

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

TARIC
additional
code

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

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Country

Company

Rate of AD duty applicable when safeguard additional duty is
payable

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

TARIC
additional
code

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

(*) OJ L 261, 28.9.2002, p. 1.’

Article 5

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

It shall expire on 28 March 2005.

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

Done at Brussels, 6 May 2003.

For the Council

The President

P. EFTHYMIOU