Proposal for a Council Regulation extending the suspension of the extended anti-dumping duty imposed by 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
Date: 2004-02-23
Institutions: European Commission
Subjects: Argentina, anti-dumping duty, cast-iron, import, originating product, piping

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.02.2004 
COM(2004) 128 final 

Proposal for a 

COUNCIL REGULATION 

extending the suspension of the extended anti-dumping duty imposed by 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 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
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EXPLANATORY MEMORANDUM 

An anti-dumping duty of 34,8 % on imports of threaded malleable cast iron tube or 
pipe fittings (‘malleable fittings’) originating in Brazil was imposed in August 2000. 

Following an investigation initiated pursuant to Article 13 of the Basic Regulation, 
the  Council  decided  in  July  2003  to  extend  the  definitive  anti-dumping  duty  on 
imports  of  malleable  fittings  originating  in  Brazil  to  imports  of  malleable  fittings 
consigned from Argentina. 

At  the  same  time  the  Commission  decided  to  suspend  the  extended  anti-dumping 
duty  for  a  period  of  nine  months  due  to  remedial  actions  undertaken  by  the 
Argentinian authorities against imports from Brazil.  

Since  the  extended  duty  was  suspended,  there  have  been  no  imports  of  malleable 
fittings  from  Argentina  and  the  imports  of  malleable  fittings  into  the  Community 
from  Brazil  have  reverted  to  the  trade  pattern  of  imports  from  that  country  in  the 
period before measures were imposed. 

On  10  April  2003  the  Argentinian  authorities  decided  to  confirm  the  provisional 
measures  by  imposing  definitive  measures  on  malleable  fittings  of  Brazilian  origin 
for only 15 months, i.e. until 11 July 2004.  

It  is  proposed  to  suspend  the  application  of  the  definitive  anti-dumping  duty 
extended to exports consigned from Argentina for a further period of four months, i.e 
until 11 July 2004. 

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Proposal for a 

COUNCIL REGULATION 

extending the suspension of the extended anti-dumping duty imposed by 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 

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), as last 
amended  by  Regulation  (EC)  No  1972/2002(2)  (the  ‘Basic  Regulation’),  and  in  particular 
Article 14(4) thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the  Advisory 
Committee3, 

Whereas: 

A. 

PROCEDURE 

(1) 

(2) 

(3) 

By Regulation (EC) No 1784/2000(4), the Council imposed a definitive anti-dumping 
duty  of  34,8 %  on  imports  of  threaded  malleable  cast  iron  tube  or  pipe  fittings 
(‘malleable fittings’) originating in Brazil, falling within CN code 7307 19 10. 

By Regulation (EC) No 1023/2003(5), the Council, following an investigation initiated 
pursuant to  Article 13 of the  Basic Regulation, extended the definitive anti-dumping 
duty  imposed  by  Regulation  (EC)  No  1784/2000  on  imports  of  malleable  fittings 
originating  in  Brazil  to  imports  of  malleable  fittings  consigned  from  Argentina 
whether declared as originating in Argentina or not.  

By  Decision  (2003/434/EC)(6)  (the  ‘Decision’),  the  Commission  suspended  the 
definitive anti-dumping duty extended by Article 1 of Regulation (EC) No 1023/2003 
for a period of nine months, with effect from 18 June 2003.  

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OJ L 56, 6.3.1996, p. 1. 
OJ L 305, 7.11.2002, p. 1. 
OJ C […] […], p. […] 
OJ L 208, 18.8.2000, p. 8. 
OJ L 149, 17.6.2003, p. 1. 
OJ L 149, 17.6.2003, p. 30. 

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(4) 

(5) 

(6) 

(7) 

B. 

GROUNDS FOR THE EXTENSION OF THE SUSPENSION 

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.  The  anti-dumping  measures  may  be  suspended  by  a 
decision  of  the  Commission  for  a  period  of  nine  months.  Article  14(4)  of  the  Basic 
regulation further specifies that the suspension may be extended for a further period, 
not exceeding one year, if the Council so decides on a proposal from the Commission.  

Following  the  suspension  of  the  extended  definitive  anti-dumping  duty  by  the 
Decision,  the  Commission  has,  in  accordance  with  recital  (12)  of  the  Decision 
continued  to  monitor  the  development  of  the  imports  of  malleable  fittings  into  the 
Community and the behaviour of individual exporters from Argentina. It is confirmed 
that since the extended duty was suspended, there have been no imports of malleable 
fittings from Argentina and that the imports of malleable fittings into the Community 
from  Brazil  have  reverted  to  the  trade  pattern  of  imports  from  that  country  in  the 
period before measures were imposed. 

Indeed,  since  18  June  2003  there  has  been  no  resumption  of  any  circumvention  and 
consequently  it  is  unlikely  that  the  injury  caused  to  the  Community  industry  would 
resume under the present circumstances. Therefore, the conditions for the suspension 
are still fulfilled for the time being. 

It should be recalled that, as explained in recitals (6) to (9) of the Decision, the main 
reason  why  the  Decision  concluded  that  injury  was  unlikely  to  resume,  was  that  the 
Argentinian authorities had taken measures against imports of malleable fittings from 
Brazil,  which  had  a  remedial  effect.  However,  on  10  April  2003  the  Argentinian 
authorities  decided  to  confirm  the  provisional  measures  by  imposing  definitive 
measures on malleable fittings of Brazilian origin for only 15 months, i.e. until 11 July 
2004. According to the information given by the Argentinian authorities, the measures 
may be subject to an expiry review, but no additional information has been submitted 
concerning  such  possible  further  action.  In  case  the  measures  imposed  by  Argentina 
on  malleable  fittings  of  Brazilian  origin  are  allowed  to  expire,  there  is  a  risk  of 
resumption  of  circumvention,  since  the  main  guarantee  for  the  elimination  of 
circumvention  would  no  longer  exist.  In  that  case,  the  conditions  for  a  further 
suspension would no longer be met. Moreover, the anti-fraud investigation which had 
been initiated by the Argentinian authorities in February 2002 concerning imports of 
malleable fittings from Brazil was terminated without any measures. 

(8) 

Under  these  circumstances,  it  cannot  be  concluded  that  injury  would  be  unlikely  to 
resume in the period after 11 July 2004. It is therefore considered appropriate that the 
definitive anti-dumping duty extended by Article 1 of Regulation (EC) No 1023/2003 
be  suspended  for  a  further  period  of  four  months,  i.e.  until  11  July  2004,  when  the 
measures imposed by Argentina on imports of malleable fittings originating in Brazil 
are due to expire.  

(9) 

In accordance with Article 14(4) of the Basic Regulation, the Community industry was 
given  an  opportunity  to  comment  upon  the  above.  The  Community  industry  did  not 
oppose the extension of the suspension of the measures until 11 July 2004. 

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C. 

CONCLUSION 

(10) 

In conclusion, the Council considers that all requirements to extend the suspension of 
the anti-dumping duties concerned, pursuant to Article 14(4) of the Basic Regulation, 
are  met.  Currently  there  are  no  exports  of  malleable  fittings  from  Argentina  to  the 
Community  due  to,  inter  alia,  the  measures  currently  imposed  by  Argentina  on 
imports of malleable fittings originating in Brazil. Injury linked to circumvention via 
Argentina is unlikely to resume as long as the measures imposed by Argentina are in 
place.  For  these  reasons,  it  is  considered  appropriate  that  the  extended  anti-dumping 
duty  imposed  by  Regulation  (EC)  No  1023/2003  should  be  further  suspended  until 
11 July 2004. 

(11)  For  the  period  of  the  suspension,  the  Commission  shall  continue  to  monitor  the 
development  of  the  imports  of  malleable  fittings  into  the  Community  and  the 
behaviour of individual exporters from Argentina. In particular, the Commission shall 
closely monitor the outcome of the ongoing proceeding in Argentina. 

(12)  The Argentinian authorities were informed of the essential facts and considerations on 
the  basis  of  which  the  Council  intended  to  extend  the  suspension  of  the  extended 
definitive  anti-dumping  measures  and  were  given  the  opportunity  to  comment.  No 
comments which were of a nature to change the above conclusions were received, 

HAS ADOPTED THIS REGULATION: 

The  suspension  of  the  extended  definitive  anti-dumping  duty  imposed  by  Regulation  (EC) 
No 1023/2003 is hereby extended until 11 July 2004. 

Article 1 

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 

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