Council Regulation (EC) No 1023/2003 of 13 June 2003 extending the definitive anti-dumping duty imposed by Regulation (EC) No 1784/2000 on imports of certain malleable cast iron tube or pipe fittings originating in Brazil and on imports of certain malleable cast iron tube or pipe fittings consigned from Argentina, whether declared as originating in Argentina or not, and terminating the investigation in respect of imports from one Argentinian exporter
Date: 2003-06-13
Institutions: Council of the European Union
Subjects: Argentina, Brazil, anti-dumping duty, cast-iron, import, originating product, piping

17.6.2003

EN

Official Journal of the European Union

L 149/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1023/2003

of 13 June 2003

extending the definitive anti-dumping duty imposed by Regulation (EC) No 1784/2000 on imports
of certain malleable cast iron tube or pipe fittings originating in Brazil and on imports of certain
malleable cast iron tube or pipe fittings consigned from Argentina, whether declared as originating
in Argentina or not, and terminating the investigation in respect of imports from one Argentinian
exporter

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 Article 13 thereof,

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Existing measures

By Regulation (EC) No 1784/2000 (2),
the Council
imposed in August 2000 an anti-dumping duty of
34,8 % on imports of threaded malleable cast iron tube
or pipe fittings (malleable fittings) originating in Brazil.

2. Request

On 12 August 2002, the Commission received a request,
pursuant to Article 13(3) of Regulation (EC) No 384/96
(the basic Regulation), from the Defence Committee of
the Malleable Cast Iron Pipe Fittings Industry of the
European Union. This request was submitted on behalf
of producers representing a major proportion of the
Community production of malleable fittings.

(3)

(4)

(5)

(6)

following the imposition of
The request alleged that
measures on imports of malleable fittings originating in
Brazil, there had been a significant change in the pattern
of trade involving exports from Brazil and Argentina to
the Community. This change in the pattern of trade was
alleged to stem from a transhipment via Argentina of
malleable fittings originating in Brazil. There had been a
significant
increase in imports from Argentina while
imports from Brazil had decreased in roughly equivalent
proportions in the meantime.

The request concluded that there was insufficient due
cause or economic justification for the aforementioned
changes other than the existence of the anti-dumping
duty on malleable fittings originating in Brazil.

Finally, the Community industry also submitted suffi-
cient evidence to initiate the anti-circumvention investi-
gation, that the remedial effects of this duty were being
undermined both in terms of quantities and prices and
that the prices of malleable fittings from Argentina were
dumped in relation to the normal values previously
established for
the malleable fittings originating in
Brazil.

3. Initiation

By Regulation (EC) No 1693/2002 (3)
(the initiating
Regulation), the Commission initiated an investigation
and directed, pursuant to Articles 13(3) and 14(5) of the
basic Regulation,
the customs authorities to register
imports of malleable fittings consigned from Argentina,
whether declared as originating in Argentina or not, as
of 26 September 2002. The Commission advised the
authorities of Brazil and Argentina of the initiation of
the investigation.

(1) 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).

(2) OJ L 208, 18.8.2000, p. 8.

(3) OJ L 258, 26.9.2002, p. 27. Regulation as amended by Regulation

(EC) No 909/2003 (OJ L 128, 24.5.2003, p. 7).

L 149/2

EN

Official Journal of the European Union

17.6.2003

4. Investigation

(7)

(8)

(9)

Questionnaires were sent to Community importers as
well as exporters of malleable fittings located in Brazil
and Argentina which were mentioned in the request,
exporters known from the original
investigation and
other interested parties who came forward within the
prescribed time limits. It was made clear to the impor-
ters and exporters that non-cooperation may lead to the
application of Article 18 of the basic Regulation.

A number of Community importers made their views
known in writing declaring that they had not imported
any malleable fittings from Argentina.

Replies to the questionnaires were received from one
Argentinian exporting producer, DEMA SA, San Justo,
Buenos Aires. The Commission carried out a verification
visit at the premises of this company.

5. Investigation period

(10)

The investigation period covered the period from 1 July
2001 to 30 June 2002 (the IP). Data were collected from
1998 up to the end of the IP to investigate the alleged
change in the pattern of trade.

B. RESULTS OF THE INVESTIGATION

1. General considerations/degree of cooperation

(11) No cooperation was received from producers or expor-
ters of malleable fittings in Brazil. However, information
was obtained from one cooperating exporting producer
in Argentina, DEMA SA, which produced malleable
fittings and exported them to the Community during the
IP. This Argentinian company accounted for a negligible
part both in volume and in value of the total imports of
malleable fittings from Argentina to the Community
during the IP, as reported by Eurostat.

in the course of

Furthermore,
the investigation the
Argentinian authorities requested within the time limits
set in the initiating Regulation to be treated as an inter-
ested party. Information and statistical data concerning
Argentinian imports and exports were obtained from the
Argentinian authorities.

(12)

(13)

ered as an interested party in the investigation and a
request to be exempted from extension of measures.
Given that
the submission was received at such an
advanced stage of the investigation and well beyond the
deadlines laid down in Article 3 of the initiating Regula-
tion and, in addition, would have required further expla-
nations and verification, the company was informed that
it could not be considered as cooperating in the investi-
gation. Accordingly,
the company was informed that
findings in respect of it had to be made on the basis of
the facts available in accordance with Article 18(1) of
the basic Regulation.

2. Product concerned and like product

(14)

(15)

The product concerned, as defined in the original investi-
iron tube or pipe
gation,
fittings
CN code
ex 7307 19 10.

is threaded malleable cast

classifiable within

currently

The investigation showed that
the malleable fittings
exported to the Community from Brazil and those
consigned from Argentina to the Community have the
same basic characteristics and have the same uses, and
are therefore to be considered as like products within
the meaning of Article 1(4) of the basic Regulation.

3. Change in the pattern of trade

Cooperating Argentinian exporter

(16) During the IP, DEMA SA,

the cooperating exporter
exported only one container to the Community. No
other exports to the Community took place during the
IP or in the period for which data were collected. In fact,
the only export preceding the one during the IP took
place in 1992. Consequently there was no clear pattern
of trade prior or after the imposition of the measures
concerning Brazilian exports to the Community, and
consequently no change of it. Moreover it has also been
established that DEMA SA is both a manufacturer and
exporter of malleable fittings operating production facil-
ities for the complete production process of the product
concerned. It only sells its own production and never
purchased any malleable fittings from Brazil during the
IP.

In December 2002, one month after the expiry of the
deadline for receipt of replies to the questionnaire, the
Commission received a submission on behalf of Indus-
trias Aguila Blanca SA (Argentina), who alleged to be a
producer of malleable fittings in Argentina. The submis-
sion contained a request by this company to be consid-

(17) Given the above, DEMA SA has shown that there was
no change in the pattern of trade regarding their exports
to the Community. Consequently, the investigation with
regard to malleable fittings exported by DEMA SA
should be terminated.

17.6.2003

EN

Official Journal of the European Union

L 149/3

Non-cooperating Argentinian exporters

(18) As far as the non-cooperating exporters are concerned
the Commission had to establish the exports to the
Community on the basis of facts available pursuant to
Article 18 of the Basic Regulation. It was considered that
Eurostat data at CN level were the best information
available to establish the findings in respect of exports to
the Community following the imposition of the anti-
dumping duty on imports of malleable fittings origi-
nating in Brazil. The export price from Argentina to the
EU was established on the basis of total export value and
tonnes reported by Eurostat at CN level from which the
quantities and values exported by the cooperating
Argentinian company were deducted. In addition, for the
data collected before the imposition of the measures, it
was considered that Eurostat data at CN level were the
best information available.

(22)

the trends,

Argentina to the Community in the same period. In the
absence of cooperation, it can therefore be inferred from
the parallelism of
the imports from
Brazil to Argentina were not meant for the Argentinian
market, but were meant to be exported to the Commu-
nity, a conclusion which is reinforced by the Argentinian
export
statistics made available by the Argentinian
authorities.

that

from Brazil

imports
took place

In the absence of cooperation, and given that the above-
for
mentioned substitution of
imports
immediately
from Argentina
following the imposition of anti-dumping duties, it has
to be concluded, in the absence of any other explana-
tion, that the change in the pattern of trade stemmed
from the imposition of the duty rather than from any
other sufficient due cause or economic justification
within the meaning of Article 13(1), second sentence, of
the basic Regulation.

(19)

The marked switch from imports from Brazil to the EU
to those from Argentina to the EU coincided with the
entry into force of Community anti-dumping measures
on malleable fittings originating in Brazil
in August
2000. Imports into the Community of malleable fittings
from Brazil, following the imposition of anti-dumping
measures by the Community, have decreased substan-
tially from 3 737 tonnes in 2000 to 181 tonnes in
2001. At the same time, imports into the Community of
malleable fittings from Argentina increased from 15
tonnes in 2000 to 3 087 in 2001. This pattern of trade
was confirmed during the first six months of the IP.
However, during the second half of the IP this change of
pattern of trade was reversed due to the ongoing Argen-
tinian anti-dumping investigation concerning imports of
malleable fittings originating in Brazil. As a result,
exports from Argentina decreased from 3 087 tonnes in
2001 to 202 tonnes in 2002. However, pending the
outcome of this Argentinian anti-dumping investigation,
it cannot be ruled out that the aforementioned change in
the pattern of trade will be on a temporary basis only.

(20) A clear change in pattern of

trade was nevertheless
established in respect of the non-cooperating companies
which manifestly coincided with the entry into force, in
August 2000, of Community anti-dumping measures on
malleable fittings originating in Brazil.

4. Insufficient due cause or economic justification

(non-cooperating Argentinian exporters)

(21) Data provided by the Argentinian authorities show that
imports of malleable fittings originating in Brazil
into
Argentina have increased substantially in the year 2001,
at a pace similar to that of the increase of exports from

(23) Due to the above, it may reasonably be concluded that
the vast majority of exports of malleable fittings from
Brazil to Argentina were merely transhipped via Argen-
tina to the Community.

5. Undermining of the remedial effects of the duty
in terms of the prices and/or quantities of the like
products
(non-cooperating Argentinian expor-
ters)

(24)

change

It is evident from the figures in recital 19 that a clear
in the pattern of Community
quantitative
imports occurred since the imposition of measures.
Indeed, in 1999 prior to the imposition of the measures,
the exports to the Community of malleable fittings origi-
nating in Brazil were 4 518 tonnes according to Eurostat
figures at CN level. These exports have fallen to a level
of 3 737 tonnes in 2000 and 15 tonnes in 2001. In
2001 these exports were replaced by exports of the non-
cooperating Argentinian exporters (accounting for 3 087
tonnes). This marked change in trade flows undermined
the remedial effects of the measures in terms of the
quantities imported into the Community market.

i.e. Eurostat

(25) With regard to prices, and given the low degree of coop-
eration, recourse had to be made to the best evidence
available,
figures at CN level. This data
revealed that the adjusted export prices from Argentina
were around 5 % below the export prices of Brazilian
exports in the original
it
must be assumed that the export prices of Argentinian
exports are below the injury elimination level of
Community prices as established in the original investi-
gation.

investigation. Consequently,

L 149/4

EN

Official Journal of the European Union

17.6.2003

(26)

It is therefore concluded that the imports concerned
undermined the remedial effects of the duty both in
terms of quantities and prices.

C. REQUESTS FOR EXEMPTION FROM REGISTRATION

OR EXTENSION OF THE DUTY

6. Evidence of dumping in relation to the normal
values previously established for like or similar
(non-cooperating Argentinian expor-
products
ters)

(27)

In order to determine whether evidence of dumping
could be found with respect to the malleable fittings
exported to the Community from Argentina by the non-
cooperating exporters during the
export data
according to Eurostat at CN level were used pursuant to
Article 18 of the basic Regulation.

IP,

Approach based on export data reported by Eurostat

(28)

(29)

In accordance with Article 13(1) of the basic Regulation,
the normal value to be used in an anti-circumvention
investigation is the normal value established during the
original investigation.

In the original investigation, normal value for Brazil was
determined per type of malleable fitting. In the current
anti-circumvention investigation the export prices were
determined on the basis of Eurostat data, which do not
provide export price data per type of malleable fitting
but only per tonne and per CN code. In the absence of
cooperation, for comparison purposes of these export
prices with the normal value established in the original
investigation, the product mix of the non-cooperating
Argentinian producers/exporters was assessed on the
basis of the product mix of export sales to the Commu-
nity in the original investigation. This comparison was
considered reasonable since it was established that the
Argentinian exports were supplied by the same Brazilian
exporter responsible for the majority of exports in the
original investigation. Consequently, a weighted average
normal value per tonne based on a product mix equal to
the product mix in the original investigation was estab-
lished.

(30)

For the purpose of a fair comparison between the
normal value and the export price, due allowance in the
form of adjustments was made for differences which
affect prices and price comparability. These adjustments
were made in accordance with Article 2(10) of the basic
Regulation in respect of transport and insurance and
based on the exports of DEMA SA.

(31)

In accordance with Article 2(11) and (12) of the basic
Regulation, the comparison of weighted average normal
values with weighted average export prices expressed as
the cif Community frontier price,
a percentage of
revealed a level of dumping of more than 40 %.

(32)

(33)

The Commission received requests for exemption from
the registration and measures from two Argentinian
producers, Industrias Aguila Blanca SA and DEMA SA.
As stated in recital 11 the former was not considered as
a cooperating producer and the request for exemption
was not taken into account in this investigation.

By Regulation (EC) No 909/2003,
the Commission
amended the initiating Regulation in order to cease
registration of
imports of malleable fittings by the
Argentinian company found not to be circumventing the
anti-dumping duties, namely DEMA SA.

(34)

In accordance with the above findings that the company
was found not to have circumvented the anti-dumping
measures in force, the company should also be exempted
from the extension of the measures envisaged.

D. MEASURES

(35)

(36)

(37)

In view of the above finding of circumvention within
the meaning of Article 13(1), second sentence of the
basic Regulation, the existing anti-dumping measures on
malleable
should be
fittings originating in Brazil
extended to the same product consigned from Argentina,
whether declared as originating in Argentina or not,
pursuant to Article 13(1), first sentence, of the basic
Regulation, with the exception of products manufactured
by the cooperating producer DEMA SA.

In accordance with Article 14(5) of the basic Regulation,
which provides that any extended measures should apply
against registered imports from the date of registration,
the anti-dumping duty on imports of malleable fittings
consigned from Argentina which entered the Commu-
nity under registration imposed by the initiating Regula-
tion, with the exception of
those malleable fittings
produced by DEMA SA, should be collected.

The non-extension of the duties to the imports of the
malleable fittings exported by DEMA SA was established
on the basis of the findings of the present investigation.
This non-extension is thus exclusively applicable to
imports of malleable fittings consigned from Argentina
and produced by this specific legal entity.
Imported
malleable fittings produced or consigned 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 the exemption and should be
subject the same duty rate as imposed by Regulation
(EC) No 1784/2000.

17.6.2003

EN

Official Journal of the European Union

L 149/5

(38) Any claim requesting the application of an exemption
from the extension of
the duties will have to be
addressed to the Commission with all relevant informa-
tion,
in particular any modification in the company's
activities linked to production and export sales.

(39) Argentinian exporters requesting an exemption pursuant
to Article 13(4) of the basic Regulation will normally be
required to complete a questionnaire in order to enable
the Commission to determine whether an exemption
may be warranted and the Commission would normally
also carry out an on-the-spot verification visit.

(40) Where exemption would be considered appropriate, the
the Advisory
Commission will, after consultation of
amend the Regulation accordingly by
Committee,
updating the list of companies benefiting from the
exception.

E. PROCEDURE

(41)

Interested parties were informed of the essential facts
and considerations on the basis of which the Commis-
sion intended to propose the extension of the definitive
anti-dumping duty in force and were given the opportu-
nity to comment. No objections were received,

HAS ADOPTED THIS REGULATION:

Article 1

The duty extended by paragraph 1 of this Article shall be
2.
collected on imports registered in accordance with Article 2 of
Regulation (EC) No 1693/2002 and Articles 13(3) and 14(5) of
Regulation (EC) No 384/96, with the exception of
those
produced by DEMA SA, Av. Pte. Perón 3750, San Justo, Buenos
Aires, Argentina.

The provisions in force concerning customs duties shall

3.
apply.

Article 2

1.
Requests for exemption from the duty extended by Article
1 shall be made in writing in one of the official languages of
the Community and must be signed by a person authorised to
to the
the applicant. The request must be sent
represent
following address:

European Commission
Directorate-General for Trade
Directorate B
Office: J-79 05/17
B-1049 Brussels
Fax (32 2) 295 65 05
Telex COMEU B 21877.

The

after

Commission,

the Advisory
2.
Committee, may authorise by decision,
the exemption of
imports which are shown not to circumvent the anti-dumping
duty imposed by Regulation (EC) No 1784/2000 from the duty
extended by Article 1 of the present Regulation.

consulting

1.
The definitive anti-dumping duty imposed by Regulation
(EC) No 1784/2000 on imports of threaded malleable cast iron
tube or pipe fittings falling within CN code ex 7307 19 10,
originating in Brazil, is hereby extended to imports of the same
threaded malleable cast iron tube or pipe fittings consigned
from Argentina (whether declared as originating in Argentina
or not)
(TARIC codes 7307 19 10 *11 and 7307 19 10 *19
respectively), with the exception of those produced by DEMA
SA, Av. Pte. Perón 3750, San Justo, Buenos Aires, Argentina
(TARIC additional code A438).

Article 3

Customs authorities are hereby directed to discontinue the
registration of imports, established in accordance with Article 2
of Regulation (EC) No 1693/2002.

Article 4

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

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

Done at Luxembourg, 13 June 2003.

For the Council

The President

G. PAPANDREOU