2003/434/EC: Commission Decision of 16 June 2003 suspending the extended anti-dumping duty imposed by Council Regulation (EC) No 1023/2003 on imports of certain malleable cast iron tube or pipe fittings consigned from Argentina, whether declared as originating in Argentina or not (notified under document number C(2003) 1693)
Date: 2003-06-16
Institutions: European Commission
Subjects: Argentina, anti-dumping duty, cast-iron, import, piping

L 149/30

EN

Official Journal of the European Union

17.6.2003

COMMISSION DECISION

of 16 June 2003

suspending the extended anti-dumping duty imposed by Council Regulation (EC) No 1023/2003 on
imports of certain malleable cast iron tube or pipe fittings consigned from Argentina, whether
declared as originating in Argentina or not

(notified under document number C(2003) 1693)

(2003/434/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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), as last
amended by Regulation (EC) No 1972/2002 (2), and in parti-
cular Article 14(4) thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

A. PROCEDURE

By Regulation (EC) No 1784/2000 (3)
(the definitive
Regulation), the Council imposed an anti-dumping duty
of 34,8 % on imports of threaded malleable cast iron
tube or pipe fittings (malleable fittings) originating in
Brazil, and falling under the CN code ex 7307 19 10
(TARIC code 7307 19 10 11).

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. The request alleged the existence of
circumvention of the anti-dumping duties imposed by
the definitive Regulation on imports of malleable fittings
originating in Brazil. According to the request,
the
circumvention practice consisted of
transhipment of
malleable fittings originating in Brazil via Argentina to
the Community. This request was submitted on behalf of
the
producers
Community production of malleable
and
contained sufficient evidence regarding the factors set
the basic Regulation. The
out
Commission initiated an investigation into the alleged
circumvention by Regulation (EC) No 1693/2002 (4) (the
initiating Regulation), as amended by Regulation (EC) No
909/2003 (5).

representing a major proportion of
fittings

in Article 13(1) of

(3)

By Regulation (EC) No 1023/2003 (6),
the Council
extended the definitive anti-dumping duty imposed by
definitive Regulation on imports of malleable fittings
falling within CN code ex 7307 19 10 (TARIC code

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 305, 7.11.2002, p. 1.
(3) OJ L 208, 18.8.2000, p. 8.
(4) OJ L 258, 26.9.2002, p. 27.
(5) OJ L 128, 24.5.2003, p. 7.
(6) See page 1 of this Official Journal.

(4)

(5)

(6)

threaded fittings

7307 19 10 10), originating in Brazil, to imports of the
same
consigned from Argentina
(whether declared as originating in Argentina or not)
(TARIC codes 7307 19 10 11 and 7307 19 10 19), with
the exception of those produced by DEMA SA, San
Justo, Buenos Aires, Argentina (TARIC additional code
A438).

B. GROUNDS

Article 14(4) of the basic Regulation provides for the
possibility of suspension of anti-dumping measures in
the Community interest on the grounds that market
conditions have temporarily changed to an extent that
injury would be unlikely to resume as a result of such a
suspension. Article 14(4) further specifies that the anti-
dumping measures concerned may be reinstated at any
time if the reason for suspension is no longer applicable.

The investigation concluded by Regulation (EC) No
1023/2003 that measures on malleable fittings origi-
nating in Brazil were circumvented by exports consigned
from Argentina. However, it also concluded that exports
from Argentina
significantly
decreased during the investigation period (July 2001 —
June 2002) and that they totally stopped after the end of
this investigation period. These findings are based both
on Eurostat and statistical information obtained from the
Argentinian authorities.

the Community

to

The cessation of exports consigned from Argentina took
place before the initiation of
the Commission anti-
circumvention investigation in September 2002, and
therefore cannot be attributed to that fact. Instead,
it
appears that the decline and subsequent elimination of
the circumventing flow of exports from Argentina was
due to remedial actions undertaken by the Argentinian
authorities,
the
Community anti-circumvention investigation. Indeed, on
5 October 2001, the Argentinian authorities initiated an
anti-dumping proceeding on exports of Brazilian malle-
able fittings to Argentina and, in February 2002, an anti-
fraud investigation was initiated by the Argentinian
customs concerning imports of the same product from
Brazil.

themselves prior to the initiation of

17.6.2003

EN

Official Journal of the European Union

L 149/31

(7)

(8)

(9)

The anti-dumping investigation initiated by the Argenti-
nian authorities resulted in the imposition of provisional
anti-dumping measures in August 2002. These anti-
dumping measures are in the form of a minimum price
set at a level of USD 3,65/kg. The anti-fraud investiga-
tion concerned the alleged wrongful obtaining of subsi-
dies for the Brazilian exporter from the Argentinian
State via its sales office in Argentina. The initiation of
this investigation resulted in fewer shipments from Brazil
to Argentina.

Both the Argentinian provisional anti-dumping duties
and the anti-fraud investigation have had a cumulative
effect on the decline of imports from Brazil into Argen-
tina and consequently the exports from Argentina into
the Community as described in recital 5. However, the
long term positive effect of these two Argentinian inves-
tigations can not be judged yet. In this regard, it should
also be noted that the provisional anti-dumping duties
on exports of malleable fittings from Brazil lapsed on 7
December 2002, before the formal conclusion of the
investigation. Until May 2003, however definitive
measures can still be imposed. Following the anti-fraud
the Argentinian authorities are actively
investigation,
especially when
pursuing
destined for re-exportation.

into Argentina

imports

In the meantime, in the absence of exports, no further
injury is caused and the effect of
the investigations
initiated by the Argentinian authorities is such that
injury would be unlikely to resume as a result of the
suspension. Under these circumstances it is considered
to be in the Community interest
to suspend the
measures for the time being.

(10) As stipulated in Article 14(4) of the Basic Regulation,
the Community industry has been given an opportunity
to comment on the above. The Community industry
does not oppose a possible suspension of the measures.

C. CONCLUSION

(11)

In conclusion, the Commission considers that all require-
ments to suspend the anti-dumping duties concerned
pursuant to Article 14(4) are met. Currently there are no
exports of malleable fittings from Argentina to the
Community. Injury linked to circumvention via Argen-
tina is unlikely to resume as a result of the suspension

(12)

(13)

which would be in the interest of the Community. For
these reasons the duties should be suspended for a
period of nine months.

In particular,

The Commission will continue to monitor the develop-
the imports of malleable fittings into the
ment of
Community and the behaviour of individual exporters
from Argentina.
the Commission will
closely monitor the outcome of the ongoing investiga-
tions carried out by the Argentinian authorities. Should
a situation arise at any time in which a resumption of
circumvention and consequently injury to the Commu-
nity industry is likely, the Commission will reinstate the
extended anti-dumping measures by repealing the
suspension of the extended measures.

In accordance with the provisions of Article 14(4) of the
basic Regulation the Commission has informed the
Community industry of
its intention to suspend the
extended anti-dumping measures and has provided it
with an opportunity to comment. The Community
industry confirmed the findings of the Commission as
concerns the present level of exports of malleable fittings
from Argentina to the Community and did not oppose
to a suspension of measures,

HAS ADOPTED THIS DECISION:

Article 1

The definitive anti-dumping duty extended by Article 1 of
Regulation (EC) No 1023/2003 is hereby suspended for a
period of nine months.

Article 2

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

Done at Brussels, 16 June 2003.

For the Commission

Pascal LAMY

Member of the Commission