Proposal for a Council Regulation amending Regulation (EC) No 1784/2000 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain malleable cast iron tube or pipe fittings originating in Brazil, the Czech Republic, Japan, the People's Republic of China, the Republic of Korea and Thailand
Date: 2004-03-26
Institutions: European Commission
Subjects: anti-dumping duty, cast-iron, import, originating product, piping, third country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.3.2004 
COM(2004) 195 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1784/2000 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of certain malleable cast 
iron tube or pipe fittings originating in Brazil, the Czech Republic, Japan, the People's 
Republic of China, the Republic of Korea and Thailand 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

By  Regulation  (EC)  No  1784/2000,  the  Council  imposed  definitive  anti-dumping 
duties  on  imports  of  certain  malleable  cast  iron  tube  or  pipe  fittings  originating, 
inter alia, in the Czech Republic, except where this product is exported by the Czech 
exporting  producer  Moravske  Zelezárny  a.s.  from  which  the  Commission,  by 
Regulation (EC) No 449/2000, has accepted a price undertaking.  

Following  breaches  of  the  undertaking,  the  Commission  is  withdrawing  acceptance 
of the undertaking and is amending Regulation (EC) No 449/2000 accordingly.  

In view of this, it is necessary to amend Regulation (EC) No 1784/2000 which grants 
an exemption to the anti-dumping duties to the company concerned. 

2 

 
 
  
 
Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1784/2000 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of certain malleable cast 
iron tube or pipe fittings originating in Brazil, the Czech Republic, Japan, the People's 
Republic of China, the Republic of Korea and Thailand 

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  Community1,  and  in 
particular Articles 8 and 9 thereof, 

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

Whereas: 

A. 

PREVIOUS PROCEDURE 

(1) 

(2) 

(3) 

On  29  May  1999,  by  means  of  a  notice  published  in  the  Official  Journal  of  the 
European Communities, the Commission announced the initiation of an anti-dumping 
proceeding2  in  respect  of  imports  of  certain  malleable  cast  iron  tube  or  pipe  fittings 
(the product concerned) originating in Brazil, Croatia, the Czech Republic, the Federal 
Republic of Yugoslavia, Japan, the People's Republic of China, the Republic of Korea 
and Thailand.  

This  proceeding  resulted  in  provisional  anti-dumping  duties  being  imposed  in 
February  2000  against  Brazil,  the  Czech  Republic,  Japan,  the  People's  Republic  of 
China,  the  Republic  of  Korea  and  Thailand  by  Commission  Regulation  (EC) 
No 449/20003 in order to eliminate the injurious effects of dumping.  

In  the  same  Regulation,  the  Commission  accepted  an  undertaking  offered  by  an 
exporting  producer  in  the  Czech  Republic,  Moravske  Zelezárny  a.s.  (Moravske). 
Subject  to  the  conditions  set  out  in  Regulation  (EC)  No  449/2000,  imports  of  the 
product concerned into the Community manufactured by this company were exempted 
from  the  said  provisional  anti-dumping  duties,  pursuant  to  Article  2  (1)  of  the  same 
Regulation. 

1 

2 
3 

OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  461/2004  (OJ  L  77, 
13.3.2004, p. 12). 
OJ C 151, 29.5.1999, p. 21. 
OJ L 55, 29.2.2000, p. 3. 

3 

 
 
  
 
                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Definitive  duties  were  later  imposed  against  Brazil,  the  Czech  Republic,  Japan,  the 
People's  Republic  of  China,  the  Republic  of  Korea  and  Thailand  by  Council 
Regulation  (EC)  No  1784/20004.  Subject  to  the  conditions  set  out  therein,  this 
Regulation also granted Moravske an exemption to the definitive anti-dumping duties 
as  an  undertaking  had  already  been  accepted  definitively  from  this  company  at  the 
provisional stage of the proceeding. 

B. 

FAILURE TO COMPLY WITH THE UNDERTAKING 

The undertaking offered in the present case obliges the company concerned, inter alia, 
to  export  the  product  concerned  to  the  Community  at  or  above  certain  minimum 
import  price  levels  (MIPs)  specified  therein.  The  company  also  undertakes  not  to 
circumvent  the  undertaking  by  making  compensatory  arrangements  with  any  other 
party  which  causes  the  net  price  paid  by  the  first  independent  customer  in  the 
Community  to  be  below  the  MIPs. Furthermore, In addition,  Moravske is obliged to 
send  to  the  European  Commission  a  quarterly  report  of  all  its  export  sales  of  the 
product concerned to the European Community.  

During  a  recent  on-spot  verification  visit  to  the  premises  of  Moravske  to  verify  the 
accuracy and veracity of data submitted in the said quarterly reports, it was found that 
the  company  had  breached  its  undertaking  by  establishing  a  compensation  scheme 
which  enabled  some  of  its  products  subject  to  the  undertaking  to  be  sold  in  the 
Community at prices below the MIPs. In addition, the company had omitted to report 
to the  Commission seventeen sales invoices  for exports of the product subject to the 
undertaking.  

Commission  Regulation  (EC)  No  …/…  sets  out  in  more  detail  the  nature  of  the 
breaches found. 

In view of these breaches, acceptance of the undertaking offered by Moravske (UT10, 
Taric  additional  code  A097)  has  been  withdrawn  by  Commission  Regulation  (EC) 
No …/… and a definitive anti-dumping duty should be imposed forthwith on imports 
of the products concerned manufactured by Moravske.  

In accordance with  Article  8  (9)  of Regulation (EC)  No  384/96,  the  rate of the anti-
dumping  duty  must  be  established  on  the  basis  of  the  facts  established  within  the 
context  of  the  investigation  which  led  to  the  undertaking.  As  the  investigation  in 
question  was  concluded  by  a  final  determination  as  to  dumping  and  injury  by 
Regulation  (EC  )  No  1784/2000,  it  is  considered  appropriate  that  the  definitive  anti-
dumping rate is set at the level and in the form imposed by that Regulation, namely 
26.1% of the net, free-at-Community-frontier price, before duty. 

C. 

AMENDMENT OF REGULATION (EC) No 1784/2000 

(10) 

In view of the above, Articles 1 (2) and 2 (3) of Regulation (EC) No 1784/2000 should 
be amended accordingly, 

4 

OJ L 208, 18.8.2000, p. 8. 

4 

 
 
  
 
                                                 
HAS ADOPTED THIS REGULATION: 

Article 1 

In  the  table  in  Article  1  (2)  of  Council  Regulation  (EC)  No  1784/2000,  the  TARIC 

1. 
additional code “A999” for the Czech Republic is replaced by “-“. 

The table in Article 2 (3) of Council Regulation (EC) No 1784/2000 is replaced by the 

2. 
following table: 

Country 

Company 

Republic of 
Korea 

Thailand 

Yeong Hwa Metal Co Ltd 
363-6, Namyang-dong, Chinhae 
Kyongman 
Korea 

BIS Pipe Fitting Industry Co. Ltd 
107 Moo 4, Petchkasem Road, Omnoi, Kratumban
Samutsakorn 74130 
Thailand 

Taric additional 
code 

A093 

A094 

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 

5