Proposal for a Council Regulation amending Regulation (EC) No 1796/1999 imposing a definitive anti-dumping duty, and collecting definitively the provisional duty imposed, on imports of steel ropes and cables originating, inter alia, in Poland and Ukraine
Date: 2003-08-26
Institutions: European Commission
Subjects: Poland, Ukraine, anti-dumping duty, import, originating product, steel

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.8.2003
COM(2003) 518 final

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1796/1999 imposing a definitive anti-dumping duty, and
collecting definitively the provisional duty imposed, on imports of steel ropes and cables
originating, inter alia, in Poland and Ukraine

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 20 May 1998, an anti-dumping proceeding was initiated by the Commission which led to
the  imposition  of  a  definitive  anti-dumping  duty  on  certain  iron  or  steel  ropes  and  cables
originating, inter alia, in Ukraine by Council Regulation (EC) No 1796/1999.1

On 30 July 1998, an anti-dumping proceeding was initiated by the Commission which led to
the  imposition  of  a  definitive  anti-dumping  duty  on  certain  iron  or  steel  ropes  and  cables
originating, inter alia, in Poland by Council Regulation (EC) No 1796/1999.

Exemptions to the duty were granted, however, inter alia, for imports produced and directly
exported to the Community by the Polish exporter Drumet and from which the Commission
accepted  an  undertaking  (cf  Commission  Regulation  No  362/19992)  Furthermore,  the
Commission accepted a price undertaking from, inter alia, the Ukrainian exporting producer
Joint  Stock  Company  Silur  (Silur)  by  Commission  Decision  1999/572/EC  of  13  August
19993.

Following  a  verification  by  the  Commission's  services  in  charge  of  the  monitoring  of  the
undertaking, it was established that Drumet had breached its undertaking and an investigation
carried out by OLAF revealed that Silur had breached its undertaking.

A definitive anti-dumping duty should therefore be imposed on imports of certain iron or steel
ropes and cables manufactured by the companies concerned.

The  purpose  of  the  present  proposal  is  therefore  to  propose  to  the  Council  to  amend
Regulation  (EC)  1796/1999  with  a  view  to  imposing  a  definitive  anti-dumping  duty  on
imports from  the  companies  concerned  by replacing the table of  companies benefiting from
an  undertaking.  In  parallel,  acceptance  of  the  relevant  undertakings  will  be  withdrawn  and
Commission Regulation No 362/1999 as well as Commission Decision 1999/572/EC will be
amended accordingly.

1

2

3

OJ L 217, 17.8.1999, p.1.
OJ L 45, 19.2.1999, p.8
OJ L 217, 17.8.1999, p 63

2

                                                
Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1796/1999 imposing a definitive anti-dumping duty, and
collecting definitively the provisional duty imposed, on imports of steel ropes and cables
originating, inter alia, in Poland and Ukraine

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  Community4,  and  in
particular Articles 8 and 9 thereof,

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

Whereas:

(1)

(2)

(3)

(4)

4

5

6

7

8

A. PREVIOUS PROCEDURE

On  20  May  1998,  an  anti-dumping  proceeding  was  initiated  by  the  Commission5  on
imports of steel ropes and cables (SWR) originating, inter alia, in Ukraine.

On  30  July  1998,  an  anti-dumping  proceeding  was  initiated  by  the  Commission6  on
imports of SWR originating, inter alia, in Poland.

Provisional  measures  were  imposed  by  Commission  Regulation  (EC)  No  362/19997.
In parallel, the Commission accepted, inter  alia, a price undertaking  from the Polish
exporting producer Drumet (Drumet) by Article 2(1) of Commission Regulation (EC)
No 362/1999. Imports of the products covered produced and directly  exported to the
Community by Drumet were exempted from the anti-dumping duty by Article 1(3) of
the same Regulation.

These proceedings were combined and ultimately resulted in a definitive anti-dumping
duty being imposed by Council Regulation (EC) No 1796/19998 of 12 August 1999 in
order to eliminate the injurious effects of dumping. Drumet continued to be exempted
from the definitive duties by virtue of and subject to its undertaking.

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 C 155, 20.5.1998, p.11
OJ C 239, 30.7.1998, p.3
OJ L 45, 19.2.1999, p.8
OJ L 217, 17.8.1999, p.1

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(5)

Furthermore,  the  Commission  accepted  a  price  undertaking  from,  inter  alia,  the
Ukrainian  exporting  producer  Joint  Stock  Company  Silur  (Silur)  by  Commission
Decision 1999/572/EC of 13 August 19999.

B. FAILURE TO COMPLY WITH THE UNDERTAKING

1. Drumet (Poland)

(6)

(7)

(8)

(9)

The undertaking accepted from Drumet only applied to imports into the Community of
SWR  which  have  been  produced  and  sold  directly  (i.e.  invoiced  and  shipped)  by
Drumet  to  its  first  unrelated  customers  in  the  Community  (clause  2  of  the
undertaking).

Furthermore, Drumet undertook not to  circumvent  the  provisions of  the undertaking,
inter alia, "by any other means", according to Clause 6 of the undertaking.

Following verifications by the Commission services in charge of the monitoring of the
undertaking,  it was established that Drumet had committed two types of  breaches  of
the above obligations. First, it had not sold all its exports of SWR to the Community
directly to unrelated importers, but via a related importer in the Community. Second, it
had  repeatedly  submitted  misleading  information  about  the  relationship  with  this
importer, thus not only breaching clause 6 of the undertaking , but also the relationship
of  trust  established  with  the  Commission  which  was  the  basis  for  acceptance  of  any
undertaking. Commission  Regulation  (EC)  No.  xxx/2003  of  xxxxx  sets  out  in  detail
the nature of the breaches found.

Acceptance of the undertaking has been withdrawn by means of the abovementioned
Commission  Regulation  and,  therefore,  in  accordance  with  Articles  8  and  9  of
Regulation  (EC)  No  384/96  of  22  December  1995,  definitive  anti-dumping  duties
should  be  imposed  forthwith  on  imports  of  the  product  concerned  manufactured  by
Drumet.

2. Silur (Ukraine)

(10)

Silur  undertook,  inter  alia,  not  to  circumvent  the  provisions  of  the  undertaking  by
making misleading declarations regarding the origin of SWR or by any other means.
Furthermore, the scope of the undertaking is limited to certain product types of SWR
(SWR covered). Other SWR than SWR covered are subject to the payment of the anti-
dumping duty.

(11) An investigation carried out by the European Anti-Fraud Office (OLAF) revealed that
imports  of  SWR  into  the  Community  which  had  been  produced  by  Silur  were,  with
Silur's  knowledge,  imported  into  the  Community  with  a  declared  false  origin.
Furthermore, it was established that other SWR than SWR covered had been sold to
the Community as if they were covered by the undertaking and thus unduly benefiting
from  the  exemption  of  the  payment  of  the  anti-dumping  duties.  Commission
Regulation  (EC)  No.  xxx/2003  of  xxx  sets  out  in  detail  the  nature  of  the  breaches
found.

9

OJ L 217, 17.8.1999, p 63

4

                                                
(12)

In the circumstances, acceptance of the undertaking has been withdrawn by the above
mentioned  Commission  Regulation.,  upon  the  request  of  Silur.  Therefore  in
accordance with Articles 8 and 9 of Regulation (EC) No 384/96 of 22 December 1995,
definitive anti-dumping duties should be imposed forthwith on imports of the product
concerned manufactured by Silur.

C. AMENDMENT OF REGULATION (EC) No 1796/1999

In  view  of  the  withdrawal  of  the  undertakings  and  pursuant  to  Article  8(9)  of  Council
Regulation  (EC)  No  384/96,  Article  2(3)  of  Regulation  (EC)  No  1796/1999  should  be
amended, and goods manufactured by Drumet and Silur should be subject to the appropriate
rate  of  anti-dumping  duty  for  each  company  as  set  in  Article  1(2)  of  Regulation  (EC)  No
1796/1999 (27,9 % for Drumet and 51,8% for Silur),

HAS ADOPTED THIS REGULATION:

Article 1

1.  In  the  table  in  Article  1  (2)  of  Council  Regulation  (EC)  No  1796/1999  the  TARIC
additional code concerning Ukraine "8900" is replaced with "-".

2.  The  table  in  Article  2(3)  of  Council  Regulation  (EC)  No  1796/1999  is  replaced  by  the
following table:

Country

Hungary

Poland

Manufacturer

Taric additional code

Drótáru és Drótkötél Ipari és Kereskedelmi
Rt. Besenyöi utca 18,3527 Miskolc, Hungary

8616

Slaskie Zaklady Lin i Drutu ‘Linodrut’
Spólka Akeyjna
Fabryka Lin i Drutów ‘Linodrut’ Zabrze
Spólka z organiczona odpowiedzialnoscia
PL-41-800 Zabre, Sobieskiego Street No 1,

Fabryka Lin i Drutów Falind Spólka z
organiczona odpowiedzialnoscia
PL-41-201 Sosnowiec, Niwecka Street 1

Górnoslaska Fabryka Lin i Drutu Linodrut
Bytom Spólka organiczona
odpowiedzialnoscia, 41-906 Bytom, Ks.
Jerzago Popieluszki Street 1

Dolnoslaska fabryka Lin i Drutu ‘Linodrut
Linmet’ Spólka z organiczona
odpowiedzialnoscia, 58-309 Walbrzych,
Sluga Street 2

5

8619

Mexico

South Africa

Aceros Camesa SA de CV
Margarita Maza de Juárez No.154,
Col Nueva Ind. Vallejo
México D.F.C.P.07700
Mexico

Haggie
Lower Germiston Road
Jupiter
PO Box 40072
Cleveland
South Africa

A022

A 023

India

Usha Martin Industries & Usha Beltron Ltd.
Shakespeare Sanani, Calcutta, 700071 India

A 024

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

Article 2

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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