Commission Regulation (EC) No 2142/2003 of 5 December 2003 terminating the definitive safeguard measures in relation to certain steel products imposed by Commission Regulation (EC) No 1694/2002
Date: 2003-12-05
Institutions: European Commission
Subjects: import, iron and steel product, protective clause, tariff quota

6.12.2003

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Official Journal of the European Union

L 321/11

COMMISSION REGULATION (EC) No 2142/2003

of 5 December 2003

terminating the definitive safeguard measures in relation to certain steel products imposed by
Commission Regulation (EC) No 1694/2002

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 3285/94 of 22 December 1994 on common rules for
imports and repealing Regulation (EC) No 518/94 (1), as last amended by Council Regulation (EC) No
2474/2000 (2), and in particular Article 21 thereof,

Having regard to Council Regulation (EC) No 519/94 of 7 March 1994 on common rules for imports from
certain third countries and repealing Regulations (EEC) No 1765/82, (EEC) No 1766/82 and (EEC) 3420/
83 (3), as last amended by Regulation (EC) No 427/2003 (4), and in particular Article 18 thereof,

After consultations within the Advisory Committee established under Article 4 of Regulation (EC) No
3285/94 and of Regulation (EC) No 519/94 respectively,

Whereas:

PROCEDURE

(1)

(2)

(3)

On 27 September 2003, following a full investigation in relation to 21 steel products, the Commis-
sion imposed definitive safeguard measures in relation to seven of those steel products, namely non-
alloy hot-rolled coils, non-alloy hot-rolled sheets and plates, non-alloy hot-rolled narrow strip, alloy
hot-rolled flat products, cold-rolled sheets, fittings (< 609,6 mm), and flanges (other than of stainless
steel). In particular, the Commission concluded that, in relation to each product, increased imports
result from unforeseen developments had caused serious injury to the Community producers. The
Commission also noted that due to a steel safeguard measure taken by the United States of America
on 5 March 2002 in relation to a wide range of steel products, imports into the Community were
likely to further increase and to significantly aggravate the situation of the Community producers.

Definitive safeguard measures were therefore imposed by Commission Regulation (EC) No 1694/
2002 (5). However, in recital 705 thereof, the Commission recalled that the safeguard measures were
taken in the context of the effect of increased imports caused by the United States trade defence
measures culminating in the United States safeguard measures, and undertook to re-examine the
need for measures should circumstances change.

A change of circumstances has now occurred, and the circumstances now pertaining in relation to
each product are set out below. Since the imposition of safeguard measures by the Commission, the
European steel market has stabilised in relation to the level of imports. Further, on 4 December
2003, the United States of America announced the withdrawal of the US safeguard measures on
steel.

(1) OJ L 349, 31.12.1994, p. 53.
(2) OJ L 286, 11.11.2000, p. 1.
(3) OJ L 67, 10.3.1994, p. 89.
(4) OJ L 65, 8.3.2003, p. 1.
(5) OJ L 261, 28.9.2002, p. 1.

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Official Journal of the European Union

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(4)

The individual circumstances pertaining to each of the seven products subject to measures is exam-
ined below. As data is not yet available for the whole of 2003, and in order to facilitate comparison
with earlier years, figures for 2003 are based on an extrapolation of actual data for the first semester
of 2003, in terms of which the ratio of imports in first semester 2001 and 2002 to second semester
imports in 2001 and 2002 was applied to the actual data for first semester 2003 in order to esti-
mate second semester 2003 data.

Hot-rolled coils

(5)

Imports of hot-rolled coils since 2001 from those countries subject to the EC steel safeguard
measures (the measures) are set out in the table below.

EU imports
(t)

2001

2002

2003

3 679 195

3 118 109

3 825 510

(6)

(7)

The tariff quota for hot-rolled coils established by the measures for the period to 28 September
2003 (3 199 240 tonnes) was only exceeded in the course of September 2003, probably due to the
appreciation of the euro relative to the US dollar and other major currencies which occurred at the
beginning of 2003. This made it more attractive to users in the Community to purchase hot-rolled
coils in the United States of America and elsewhere.

It is not yet possible to definitively state the quantity and origin of imports of hot-rolled coils made
in excess of the tariff quota, as import statistics are not yet available. However, the information
available indicates that the quantities were small and were certainly no more than 1 % of the tariff
quota. Requests for the benefit of the tariff quota by Member States on behalf of importers received
by the Commission and which were not met were only 2 487 tonnes. In this regard it is noted that
the tariff quota for the year to 28 September 2004 is 3 359 234 tonnes, which is, in any event, 5 %
greater than that for the period to 28 September 2003 and in excess of the volume of imports for
which applications to benefit from the tariff quota for hot-rolled coils in the period to 28 September
2003, were made.

Hot-rolled sheets and plates

(8)

Imports of hot-rolled sheets and plates since 2001 from those countries subject to the measures are
set out in the table below.

EU imports
(t)

2001

2002

2003

540 541

531 076

545 247

(9)

Imports of hot-rolled sheets and plates from countries covered by the measures have increased
marginally since 2001. In relation to the tariff quota established by the measures for the year to 28
September 2003 (554 286 tonnes), they have remained below the level of the tariff quota with
overall tariff quota utilisation of only 88 %.

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Hot-rolled narrow strip

(10)

Imports of hot-rolled narrow strip since 2001 from those countries subject to the measures are set
out in the table below.

EU imports
(t)

2001

2002

2003

211 128

146 828

140 945

(11)

Imports of hot-rolled narrow strip from countries covered by the measures have fallen substantially
from their level in 2001. In relation to the tariff quota established by the measures for the year to
28 September 2003 (198 365 tonnes), they have remained below the level of the tariff quota with
overall tariff quota utilisation of only 53 %.

Hot-rolled flat products

(12)

Imports of hot-rolled flat products since 2001 from those countries subject to the measures are set
out in the table below.

EU imports
(t)

2001

75 967

2002

70 479

2003

20 030

(13)

Imports of hot-rolled flat products from countries covered by the measures have fallen substantially
below their level in 2001. In relation to the tariff quota established by the measures for the year to
28 September 2003 (50 832 tonnes), they have remained below the level of the tariff quota with
overall tariff quota utilisation of only 61 %.

Cold-rolled sheets

(14)

Imports of cold-rolled sheets since 2001 from those countries subject to the measures are set out in
the table below.

EU imports
(t)

2001

2002

2003

1 887 599

1 158 314

1 337 771

(15)

Imports of cold-rolled sheets from countries covered by the measures have fallen substantially below
their level in 2001. In relation to the tariff quota established by the measures for the year to 28
September 2003 (2 107 210 tonnes), they have remained below the level of the tariff quota with
overall tariff quota utilisation of only 63 %.

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(16)

Imports of fittings since 2001 from those countries subject to the measures are set out in the table
below.

Fittings (< 609,6 mm)

EU imports
(t)

2001

13 074

2002

9 589

2003

13 728

(17)

Imports of fittings from countries covered by the measures have fallen substantially below their level
in 2001. In relation to the tariff quota established by the measures for the year to 28 September
2003 (12 031 tonnes), they have remained below the level of the tariff quota with overall tariff
quota utilisation of only 53 %.

(18)

Imports of flanges since 2001 from those countries subject to the measures are set out in the table
below.

Flanges (other than of stainless steel)

EU imports
(t)

2001

94 433

2002

74 419

2003

67 681

(19)

(20)

Imports of flanges from countries covered by the measures have fallen substantially below their level
in 2001. In relation to the tariff quota established by the measures for the year to 28 September
2003 (90 490 tonnes), they have remained below the level of the tariff quota with overall tariff
quota utilisation of only 65 %.

CONCLUSION

In view of the fact that the tariff rate quotas were significantly underutilised for six of the seven
products and that imports only marginally exceeded the quota for hot-rolled coils, as well as the
repeal of the United States steel safeguard measure, the Commission considers that the safeguard
measures are no longer necessary and should be repealed,

HAS ADOPTED THIS REGULATION:

Commission Regulation (EC) No 1694/2002 of 27 September 2002 is hereby repealed.

Article 1

This Regulation shall enter into force on the day following 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, 5 December 2003.

For the Commission

Pascal LAMY

Member of the Commission