Proposal for a Council Regulation extending the definitive anti-dumping duty imposed by Regulation (EC) No 1796/1999 on imports of steel ropes and cables originating, inter alia, in Ukraine to imports of steel ropes and cables consigned from Moldova, whether declared as originating in Moldova or not
Date: 2004-03-29
Institutions: European Commission
Subjects: Moldova, anti-dumping duty, import, metal product, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.03.2004 
COM(2004)213 final 

. 

Proposal for a 

COUNCIL REGULATION 

extending the definitive anti-dumping duty imposed by Regulation (EC) No 1796/1999 
on imports of steel ropes and cables originating, inter alia, in Ukraine to imports of 
steel ropes and cables consigned from Moldova, whether declared as originating 
in Moldova or not 

. 

(presented by the Commission) 

EN 

   EN 

 
 
 
1. 

2. 

3. 

4. 

EXPLANATORY MEMORANDUM 

By  Regulation  (EC)  No  1796/1999,  the  Council  imposed  in  August  1999  an  anti-
dumping duty of 51,8 % on imports of steel ropes and cables originating in Ukraine.  

Following a request lodged by the Liaison Committee of the European Federation of 
Steel  Wire  Rope  Industries  (EWRIS),  the  Commission  initiated  in  July  2003  an 
investigation  into  the  alleged  circumvention  of  the  measures  on  imports  of  steel 
ropes  and  cables  originating  in  Ukraine  by  imports  of  steel  ropes  and  cables 
consigned from Moldova. 

The investigation showed a significant increase in the imports into the Community of 
steel ropes and cables exported from Moldova, and a parallel decrease in the imports 
of these products from Ukraine. This change in the pattern of trade coincided in time 
with  the  imposition  of  the  duty  on  imports  of  steel  ropes  and  cables  originating  in 
Ukraine. No economic justification or sufficient due cause could be established for 
these practices other than the existence of the anti-dumping duty, the remedial effects 
of the duty are being undermined in terms of the prices and quantities of the goods 
imported, and there is evidence of dumping.  

It  is  therefore  proposed  that  the  51,8  %  anti-dumping  duty  imposed  on  imports  of 
steel  ropes  and  cables  originating  in  Ukraine  by  Council  Regulation  (EC)  No 
1796/1999  be  extended  to  imports  of  steel  ropes  and  cables  consigned  from 
Moldova, whether declared as originating in Moldova or not. 

2 

 
 
  
 
Proposal for a 

COUNCIL REGULATION 

extending the definitive anti-dumping duty imposed by Regulation (EC) No 1796/1999 
on imports of steel ropes and cables originating, inter alia, in Ukraine to imports of 
steel ropes and cables consigned from Moldova, whether declared as originating 
in Moldova 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  Community1  as  last 
amended by Regulation (EC) No 461/20042 (‘the basic Regulation’), and in particular Article 
13 thereof, 

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

Whereas: 

A. 

PROCEDURE 

1. 

Existing measures 

(1) 

By Regulation (EC) No 1796/19993 (‘the original Regulation’), the Council imposed 
an anti-dumping duty of 51,8 % on imports of steel ropes and cables originating, inter 
alia,  in  Ukraine.  By  Commission  Decision  1999/572/EC4,  the  Commission  accepted 
an undertaking from the exporting producer Joint Stock Company Silur, Ukraine. By 
Regulation (EC) No 1678/2003, the undertaking which had previously accepted from 
Joint Stock Company Silur was withdrawn5. 

1 
2 
3 

4 

5 

OJ L 56, 6.3.1996, p. 1. 
OJ L 77, 13.3.2004, p. 12. 
OJ  L  217,  17.8.1999,  p.  1  as 
(OJ L 238, 25.9.2003, p. 1). 
OJ  L  217,  17.8.1999,  p.  63  as 
(OJ L 238, 25.9.2003, p. 13). 
OJ L 238, 25.9.2003, p. 13. 

last  amended  by  Regulation 

(EC)  No  1674/2003 

last  amended  by  Regulation 

(EC)  No  1678/2003 

3 

 
 
  
 
                                                 
(2) 

(3) 

(4) 

(5) 

(6) 

2.  Request 

On 16 June 2003, the Commission received a request pursuant to Article 13(3) of the 
basic  Regulation  (‘the  request’)  from  the  Liaison  Committee  of  the  European 
Federation  of  Steel  Wire  Rope  Industries  (‘EWRIS’)  (‘the  applicant’)  to  investigate 
the alleged circumvention of the anti-dumping measures imposed on imports of steel 
ropes  and  cables  originating  in  Ukraine.  The  request  was  submitted  on  behalf  of  a 
major proportion of the Community production of steel ropes and cables. 

The  applicant  alleged  and  submitted  sufficient  evidence  showing  that,  following  the 
imposition of measures on imports of steel ropes and cables originating, inter alia, in 
Ukraine, there had been a significant change in the pattern of trade involving exports 
of steel ropes and cables from Ukraine and Moldova to the Community. This change 
in the pattern of trade was alleged to stem from the transhipment via Moldova of steel 
ropes and cables originating in Ukraine. It was alleged that there was insufficient due 
cause  or  economic  justification  for  the  aforementioned  changes  other  than  the 
imposition of the duty on imports of steel ropes and cables from Ukraine.  

Finally, the applicant alleged and submitted evidence that the remedial effects of this 
duty were being undermined both in terms of quantities and prices. It was claimed that 
significant volumes of imports of steels ropes and cables from Moldova have replaced 
imports  of  steel  ropes  and  cables  originating  in  Ukraine.  In  addition,  the  applicant 
submitted  evidence  that  the  prices  of  steel  ropes  and  cables  imported  from  Moldova 
were dumped in relation to the normal values previously established for the steel ropes 
and cables originating in Ukraine. 

3. 

Initiation 

By  Regulation  (EC)  No  1347/20036  (‘the  initiating  Regulation’),  the  Commission 
initiated  an  investigation  into  the  alleged  circumvention  of  steel  ropes  and  cables 
originating in Ukraine by imports of steel ropes and cables consigned from Moldova, 
whether declared as originating in Moldova or not and, pursuant to Articles 13(3) and 
14(5)  of  the  basic  Regulation,  directed  the  customs  authorities  to  register  imports  of 
steel  ropes  and  cables  consigned  from  Moldova,  whether  declared  as  originating  in 
Moldova  or  not,  as  of  31  July  2003.  The  Commission  advised  the  authorities  of 
Ukraine and Moldova of the initiation of the investigation.  

4. 

Investigation 

Questionnaires  were  sent  to  the  parties  located  in  Ukraine  and  Moldova  that  were 
either  named  in  the  request  or  subsequently  became  known  to  the  Commission. 
Questionnaires  were  sent  to  importers  in  the  Community  that  were  named  in  the 
request  or  co-operated  in  the  original  investigation  that  led  to  the  existing  measures. 
All  parties  were  informed  that  non-cooperation  might  lead  to  the  application  of 
Article 18 of the basic Regulation and to findings being made on the basis of the facts 
available. 

6 

OJ L 190, 30.7.2003, p. 3. 

4 

 
 
  
 
                                                 
(7) 

(8) 

(9) 

No  complete  reply  to  the  questionnaires  was  received  from  exporters/producers  in 
Ukraine.  The  two  known  exporting  producers  in  Ukraine  informed  the  Commission 
that  they  had  only  exported  an  insignificant  quantity  of  the  product  concerned  to 
Moldova  during  the  investigation  period,  and  that  these  exports  were  exclusively 
destined for  internal  consumption in Moldova.  No replies to the questionnaires were 
received from exporters/producers in Moldova. 

In the course of the investigation, statistical data concerning imports and exports of the 
product concerned were obtained from the Ukrainian and Moldovan authorities. 

A  number  of  Community  importers  replied  by  declaring  that  they  had  not  imported 
any  steel  ropes  and  cables  from  Moldova  during  the  investigation  period.  One 
importer  reported  that  it  had  two  deliveries  of  the  product  concerned  amounting  to 
196 tonnes declared as of Moldovan origin during the investigation period. 

5. 

Investigation Period 

(10)  The  investigation  period  covered  the  period  from  1  July  2002  to  30  June  2003  (‘the 
IP’). Data were collected from 1999 up to the end of the IP to investigate the alleged 
change in the pattern of trade. 

B. 

RESULTS OF THE INVESTIGATION 

1.  Degree of cooperation 

(11)  As  mentioned  above  in  recital  7,  no  producers/exporters  of  steel  ropes  and  cables  in 
Moldova  made  themselves  known,  or  cooperated  in  the  investigation.  Accordingly, 
findings in respect of the exports of steel ropes and cables consigned from Moldova to 
the EU had to be made on the basis of the facts available in accordance with Article 18 
of the basic Regulation. At the outset of the investigation, all companies known were 
informed  that  non-cooperation  might  lead  to  the  application  of  the  said  Article,  as 
explained above in recital 6. 

2.  Additional information 

(12)  Without  prejudice  to  the  present  investigation  and  by  way  of  background  it  is 
mentioned here that an investigation on alleged fraud involving steel ropes and cables 
declared as originating in Moldova but likely to be originating in Ukraine was initiated 
by  the  European  Anti-Fraud  Office  (‘OLAF’)  in  2002  and  is  still  ongoing.  Other 
OLAF  investigations  are  also  ongoing,  concerning  similar  allegations  relating  to  the 
same product likely to be originating in Ukraine but declared as originating in another 
third country. Moreover, the customs authorities of one Member State considered that 
a quantity of 196 tons imported into the Community during the IP and declared as of 
Moldovan origin was not of that origin but of Ukrainian origin.  

3. 

Product concerned and like product  

(13)  The product under consideration is, as defined in the original investigation, steel ropes 
and cables, including locked coil ropes, excluding ropes and cables of stainless steel, 
with  a  maximum  cross-sectional  dimension  exceeding  3mm,  currently  classifiable 
within  CN  codes  ex  7312  10  82,  ex  7312  10  84,  ex  7312  10  86,  ex  7312  10  88,  ex 
7312 10 99.  

5 

 
 
  
 
(14) 

In  the  absence  of  cooperation  by  any  Moldovan  company  and  given  the  statements 
provided  in  the  request,  it  is  considered  that  steel  ropes  and  cables  exported  to  the 
Community from Ukraine and those consigned from Moldova to the Community have 
the same basic characteristics and the same uses. Therefore, they are considered as like 
products within the meaning of Article 1(4) of the basic Regulation. 

4.  Change  in  the  pattern  of  trade  between  third  countries  and  the 

Community 

(15)  Due  to  the  non-cooperation  of  any  Moldovan  company,  the  volume  and  value  of 
Moldovan exports of the product concerned to the Community were determined on the 
basis of the information available, which in this case was Eurostat data at CN level. 

(16)  Following the imposition of the anti-dumping duty of 51,8 %, imports of the product 
concerned  originating  in  Ukraine  into  the  Community  decreased  substantially  from 
1 234  tonnes  in  1999  to  386  tonnes  in  2000,  320  tonnes  for  the  year  2001  and  209 
tonnes  in  2002.  During  the  IP,  the  reported  imports  amounted  to  437  tonnes.  At  the 
same time, imports into the Community of steel ropes and cables from Moldova have 
increased  from  a  situation  of  zero  imports  until  1999  to  36  tonnes  in  2000,  and 
suddenly increased to 1 054 tonnes in 2001 and 1 815 tonnes in 2002. During the IP, 
the reported imports amounted to 196 tonnes still confirming the change in the pattern 
of trade that commenced from the year 2000, since beforehand there were no imports 
from  Moldova  into  the  Community.  Accordingly,  a  marked  change  in  the  pattern  of 
trade is established in the case of both exporting countries which coincided  with the 
entry  into  force,  in  August  1999,  of  the  anti-dumping  measures  on  steel  ropes  and 
cables originating in Ukraine. 

5. 

Insufficient due cause or economic justification  

(17)  According to the available information, there appears to be no Moldovan production 
of  steel  ropes  and  cables.  There  were  no  imports  of  the  product  concerned  into 
Moldova  from  Ukraine  before  2000  according  to  the  national  Ukrainian  statistical 
data.  The  imports  commenced  in  2000  after  the  imposition  of  measures  in  August 
1999, coinciding with the change of pattern of trade as shown in recital 16. Statistical 
data  supplied  provided  by  the  Moldovan  authorities  show  that,  except  for  some 
negligible  quantities,  no  other  countries  have  exported  the  product  concerned  to 
Moldova. 

(18)  There is a coincidence in time between the imposition of the anti-dumping measures 
on  imports  of  the  product  concerned  from  Ukraine  and  the  parallel  surge  of  exports 
from  Moldova.  In  the  absence  of  cooperation  by  any  Moldovan  company,  it  is 
concluded, on the basis of the available information, that the change in the pattern of 
trade  stemmed  from  the  imposition  of  the  anti-dumping  duty  rather  than  any  other 
sufficient  due  cause  or  economic  justification  within  the  meaning  of  the  second 
sentence of Article 13(1) of the basic Regulation.  

6 

 
 
  
 
6.  Undermining  of  the  remedial  effects  of  the  duty  in  terms  of  the  prices 

and/or the quantities of the like product 

(19) 

It  is  evident  from  the  figures  in  recital  (16)  that  a  clear  quantitative  change  in  the 
pattern of Community imports of the product concerned occurred since the imposition 
of  measures  in  1999.  Following  the  imposition  of  the  antidumping  duty,  Ukrainian 
imports into the Community decreased significantly and there was a parallel surge of 
exports of the product concerned to the Community from Moldova. According to the 
Eurostat data, since 1999 until the end of IP, the total amount of the Moldovan exports 
to the Community was 2 870 tonnes that replaced corresponding quantities previously 
exported  from  Ukraine.  It  is  therefore  clear  that  the  marked  change  in  trade  flows 
undermined  the  remedial  effects  of  the  measures  in  terms  of  the  quantities  imported 
into the Community market. 

(20)  With  regard  to  prices  of  the  products  concerned  consigned  from  Moldova,  in  the 
absence of cooperation, it was necessary to refer to Eurostat data, which was the best 
evidence available. It was found that the average export price of the Moldovan exports 
to  the  Community  were  below  the  injury  elimination  level  of  Community  prices  as 
established  in  the  original  investigation.  Hence,  the  remedial  effects  of  the  duty 
imposed in terms of prices are undermined. 

(21) 

It  is  therefore  concluded  that  the  imports  of  the  product  concerned  from  Moldova 
undermine the remedial effects of the duty both in terms of quantities and prices. 

7. 

Evidence  of  dumping  in  relation  to  the  normal  values  previously 
established for like or similar products  

(22)  As  explained  in  recital  20,  given  the  absence  of  cooperation,  in  order  to  determine 
whether evidence of dumping could be found with respect to the exports of the product 
concerned to the Community from Moldova during the IP, Eurostat data at CN level 
were used pursuant to Article 18 of the Basic Regulation as the basis for establishing 
export prices to the EU. 

(23) 

In accordance with Article 13(1) of the basic Regulation, the normal value to be used 
in  an  anti-circumvention  investigations  is  the  normal  value  established  during  the 
original  investigation.  In  the  original  investigation,  Poland  was  considered  to  be  the 
appropriate  market  economy  analogue  country  for  Ukraine  and  normal  value  was 
established on the basis of prices as well as constructed normal value in that analogue 
country. 

(24) 

In the absence of cooperation and pursuant to Article 18 of the Basic Regulation, for 
the  purpose  of  comparing  the  export  price  and  normal  value,  it  was  considered 
appropriate  to  assume  that  the  product  mix  of  the  goods  observed  during  this 
investigation was the same as in the original investigation. 

(25)  For the purpose of a fair comparison between the normal value and the export price, 
due allowance in the form of adjustments was made for differences in factors affecting 
price  and  price  comparability.  These  adjustments  were  made  in  accordance  with 
Article 2(10) of the basic Regulation in respect of transport, insurance and handling. 
As far as the exports consigned from Moldova to the Community were concerned, in 
the absence of other information relating to these factors, the information contained in 
the request was used. 

7 

 
 
  
 
(26) 

(27) 

(28) 

In  accordance  with  Article  2(11)  and  2(12)  of  the  basic  Regulation,  the  weighted 
average normal value as established during the original investigation was compared to 
the average export price for the IP established as indicated in recital 22 above. In the 
absence of any information to the contrary, it was assumed that the product mix had 
not  changed  between  the  original  investigation  and  the  IP.  This  comparison  showed 
the  existence  of  dumping.  The  dumping  margin  found,  expressed  as  a  percentage  of 
the CIF price at the Community frontier duty unpaid was between 10 % and 15 %. 

C.  MEASURES 

In view of the findings above , it is found that circumvention has taken place within 
the meaning of Article 13(1), second sentence, of the basic Regulation. In accordance 
with  Article  13(1)  first  sentence  of  the  basic  Regulation,  the  existing  anti-dumping 
measures  on  imports  of  the  product  concerned  originating  in  Ukraine  should  be 
extended to imports of the same product consigned from Moldova, whether declared 
as originating in Moldova or not. 

In  accordance  with  Article  14(5)  of  the  basic  Regulation,  which  provides  that 
measures shall be applied against registered imports from the date of registration, the 
anti-dumping duty should be collected on imports of steel ropes and cables consigned 
from  Moldova  which  entered  the  Community  under  registration  imposed  by  the 
initiating Regulation. 

(29)  The  circumvention  takes  place  outside  the  Community.  Article  13  of  the  basic 
Regulation aims to counter circumvention practices without affecting operators which 
can prove that they are not involved in such practices, but it does not contain a specific 
provision providing for the treatment of producers which could establish that they are 
not involved in circumvention practices. Therefore, it appears necessary to introduce a 
possibility for producers which have not sold the product concerned for export during 
the  IP  and  are  not  related  to  any  exporters  or  producers  subject  to  the  extended 
antidumping  duty  to  request  an  exemption  from  the  measures  on  these  imports.  The 
producers concerned which would consider to lodge a request for an exemption from 
the  extended  anti-dumping  duty  would  be  required  to  complete  a  questionnaire  in 
order  to  enable  the  Commission  to  determine  whether  an  exemption  may  be 
warranted.  Such  exemption  may  be  granted  after  the  assessment  of  the  market 
situation  of  the  product  concerned,  production  capacity  and  capacity  utilisation, 
procurement and sales and the likelihood of continuation of practices for which there 
is insufficient due cause or economic justification and the evidence of dumping. The 
Commission would normally also carry out an on-spot verification visit. The request 
would  have  to  be  addressed  to  the  Commission  forthwith,  with  all  relevant 
information,  in  particular  any  modification  in  the  company's  activities  linked  to 
production and sales. Importers could still benefit from exemption from registration or 
measures to the extent that their imports are from exporters, which are granted such an 
exemption, and in accordance with Article 13(4). 

(30)  Where  an  exemption  is  warranted,  the  Commission  will,  after  consultation  of  the 
Advisory  Committee,  propose  the  amendment  of  this  Regulation  accordingly. 
Subsequently,  any  exemptions  granted  will  be  monitored  to  ensure  compliance  with 
the conditions set therein. 

8 

 
 
  
 
D. 

PROCEDURE 

(31) 

Interested parties were informed of the essential facts and considerations on the basis 
of which the Council intended to extend the definitive anti-dumping duty in force and 
were given the opportunity to comment and to be heard. No comments which were of 
a nature to change the above conclusions were received, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

The  definitive  anti-dumping  duty  imposed  by  Regulation  (EC)  No  1796/1999  on 
imports  of  steel  ropes  and    cables    originating  in  Ukraine,  falling  within  the  CN 
codes  ex 7312 10 82, ex 7312 10 84, ex 7312 10 86, ex 7312 10 88, ex 7312 10 99, 
is  hereby  extended  to  imports  of  the  same  steel  ropes  and  cables  consigned  from 
Moldova  (whether    declared    as    originating    in    Moldova    or  not)  (TARIC  codes 
7312 10 82*11, 7312 10 84*11, 7312 10 86*11, 7312 10 88*11, 7312 10 99*11). 

The  duty  extended  by  paragraph  1  of  this  Article  shall  be  collected  on  imports 
registered  in  accordance  with  Article  2  of  Regulation  (EC)  No  1347/2003  and 
Articles 13(3) and 14(5) of Regulation (EC) No 384/96. 

3. 

The provisions in force concerning customs duties shall apply. 

1. 

2. 

Article 2 

Requests for exemption from the duty extended by Article 1 shall be made in writing 
in one of the official languages of the Community and must be signed by a person 
authorised  to  represent  the  applicant.  The  request  must  be  sent  to  the  following 
address: 

European Commission 
Directorate-General for Trade 
Directorate B 
Office: J-79 05/17 
B - 1049 Brussels 
Fax (32 2) 295 65 05 
Telex COMEU B 21877. 

The  Commission,  after  consulting  the  Advisory  Committee,  may  authorise  by  a 
decision,  the  exemption  of  imports  which  are  shown  not  to  circumvent  the  anti-
dumping duty imposed by Regulation (EC) No 1796/1999 from the duty extended by 
Article 1 of the present Regulation. 

9 

 
 
  
 
Customs authorities are hereby directed to discontinue the registration of imports, established 
in accordance with Article 2 of Regulation (EC) No 1347/2003. 

Article 3 

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

Article 4 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

10