Proposal for a Council Regulation amending Council Regulation (EC) No 151/2003 imposing a definitive anti-dumping duty on imports of certain grain oriented electrical sheets originating in Russia, as last amended by Council Regulation (EC) No XX/2004
Date: 2004-04-19
Institutions: European Commission
Subjects: anti-dumping duty, import, originating product, sheet

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.4.2004 
COM(2004) 282 final 

. 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 151/2003 imposing a definitive anti-dumping 
duty on imports of certain grain oriented electrical sheets originating in Russia, as last 
amended by Council Regulation (EC) No XX/2004  

. 

(presented by the Commission) 

EN 

   EN 

 
 
 
EXPLANATORY MEMORANDUM 

On 20 March 2004, the Commission initiated a review investigation with regard to imports of 
certain grain oriented electrical sheets originating in Russia. The purpose of the review was to 
examine whether these measures should be amended to take account of the enlargement of the 
Community. 

The  examination  showed  that  it  was  in  the  interests  of  the  Community  to  provide  for  the 
temporary  adaptation  of  the  measures  in  force  to  avoid  an  excessive  negative  impact  on 
importers and users in EU10. 

It is therefore proposed to accept temporary undertakings from the exporters concerned with 
elements for quantitative ceilings corresponding to their traditional export volume to EU10.  

Member States were consulted and did not oppose the proposal. 

It is proposed that the Council adopt the attached proposal for a Regulation which should be 
published in the Official Journal no later than 20 May 2004. 

2 

 
 
  
 
Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 151/2003 imposing a definitive anti-dumping 
duty on imports of certain grain oriented electrical sheets originating in Russia, as last 
amended by Council Regulation (EC) No XX/2004  

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 
Articles 8, 11(3), 21 and 22 (c) thereof, 

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

Whereas: 

A. PROCEDURE 

1. Measures in force 

(1) 

(2) 

(3) 

By Regulation (EC) No XX/20043 the Council amended Council Regulation (EC) No 
151/20034 imposing a definitive anti-dumping duty on imports into the Community of 
certain grain oriented electrical sheets (“the product concerned”) originating in Russia.  

The  rate  of  the  duty  applicable  to  the  net,  free-at-Community-frontier  price,  before 
duty,  is  set  for  imports  of  the  product  concerned  originating  in  Russia  at  40,1% 
manufactured  by  the  Novolipetsky  Iron  &  Steel  Corporation  (NLMK)  and  at  14,7% 
manufactured by the VizStal Ltd.  

2. Investigation 

On 20 March 2004 the Commission announced through the publication of a notice in 
the Official Journal of the European Union5 the initiation of a partial interim review of 
measures  in  force  (“measures”)  pursuant  to  Article  11(3)  and  22  (c)  of  the  basic 
Regulation.  

1 
2 
3 
4 
5 

OJ L 56, 6.3.1996, p. 1. 
OJ L 77, 13.3.2004, p. 12. 
OJ L […], […], p. […]. 
OJ L 25, 30.1.2003, p. 7. 
OJ C 70, 20.3.2004, p. 15. 

3 

 
 
  
 
                                                 
(4) 

(5) 

The  review  was  launched  at  the  initiative  of  the  Commission  in  order  to  examine 
whether, as a consequence of the enlargement of the European Union on 1 May 2004 
(“Enlargement”) and bearing in mind the aspect of Community interest, there is a need 
to adapt the measures in order to avoid a sudden and excessively negative effect on all 
interested parties including users, distributors and consumers.  

3. Parties concerned by the investigation 

All  interested  parties  known  to  Commission,  including  the  Community  industry, 
associations  of  producers  or  users  in  the  Community,  exporting  producers  in  the 
country concerned, importers and their associations and the relevant authorities of the 
countries concerned as well as interested parties in the ten new Member States which 
acceded  to  the  European  Union  on  1  May  2004  (“the  EU10”)  were  advised  of  the 
initiation  of  the  investigation  and  were  given  the  opportunity  to  make  their  views 
known in writing, to submit information and to provide supporting evidence within the 
time limit set out in the notice of initiation. All interested parties who so requested and 
showed that there were reasons why they should be heard were granted a hearing. 

(6) 

In this regard, the following interested parties made their views known: 

(a)  Community producers Association:  

– 

European Confederation of Iron and Steel Industries (Eurofer)  

(b)  Exporting producers: 

– 

– 

Novolipetsky Iron & Steel Corporation (NLMK), Lipetsk, 

VizStal Ltd., Ekaterinburg. 

B. PRODUCT UNDER CONSIDERATION 

(7) 

(8) 

The product under consideration is the same as in the original investigation, i.e. grain 
oriented  cold-rolled  sheets  and  strips  of  silicon-electrical  steel  with  a  width  of  more 
than  500  mm  originating  in  Russia,  falling  within  CN  codes  7225 11 00  and 
ex 7226 11 00. This product is used for electromagnetic appliances and in installations 
such as power and distribution transformers. 

In the rather complex manufacturing process of GOES, grain structures are orientated 
uniformly in the direction of the rolling of the sheet or of the strip in order to allow it 
to conduct a magnetic field with a high degree of efficiency. The product in question 
has to comply with specifications concerning the magnetic induction, the pile factor as 
well as the highest admissible level of re-magnetisation losses. In general, both sides 
of the product are covered with a thin isolating coating. 

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C. RESULTS OF THE INVESTIGATION 

1. Submissions of interested parties in exporting countries 

(9) 

(10) 

Two Russian exporting producers and the Russian authorities claimed that due to the 
high  level  of  the  anti-dumping  duties  and  as  a  consequence  of  the  extension  of  the 
measures to the EU10, their traditional trade flows to the EU10 would be significantly 
disrupted.  

In particular, they claimed that the sudden sharp price increases triggered by the high 
level  of  the  anti-dumping  duties  rendered  the  product  prohibitively  expensive  for 
electromagnetic  appliances  and  in  installations  such  as  power  and  distribution 
transformers.  

2. Comments received from the Community Industry 

(11)  The  Community  Industry  stated  that  although  average  prices  in  the  EU10  were 
significantly lower than those in the European Union as constituted immediately prior 
to  1  May  2004  (“the  EU15”),  it  would  not  oppose  any  proposals  for  intermediate 
measures  to  be  taken  over  a  transitional  period  which  do  not  adversely  affect  its 
situation. 

3. Comments received from Member States 

(12)  The  authorities  of  certain  Member  States  of  the  EU10  considered  that  special 
transitional  arrangements  should  apply  to  imports  of  the  product  concerned  from 
Russia following Enlargement.  

(13) 

In this regard, it was argued that the product concerned is of significant importance for 
industrial end-users in the EU10. 

4. Assessment 

(14)  On  the  basis  of  the  available  data  and  information,  an  analysis  was  made  which 
confirmed that the import volumes of the product concerned coming from Russia into 
the EU10 were significant in 2002 and 2003 year. 

(15)  Considering  that  the  product  concerned  is  of  significant  importance  for  traditional 
industrial end-users in the EU10 and the relatively high level of anti-dumping duty, it 
was  therefore  concluded  that  it  is  in  the  Community  interest  to  gradually  adapt  the 
measures currently in force in order to avoid a sudden and excessively negative effect 
on all interested parties. 

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5. Conclusion 

(16)  All these various aspects and interests have been taken into account and considered as 
a whole. It emerges from this that the EU10 importers’ and users’ interests would be 
substantially negatively affected by the sudden application of the existing measures if 
they were not to be temporarily adapted. 

(17)  However, by contrast, as the interest of the Community Industry itself confirmed it, its 
interests  would  not  be  unduly  negatively  affected  if  the  measures  were  to  be 
temporarily adapted as they cannot currently fully satisfy the demands of customers in 
the EU10. 

(18) 

In  such  circumstances,  it  can  reasonably  be  concluded  that  is  not  in  the  Community 
interest  to  apply  the  existing  measures  without  adaptation  and  than  the  temporary 
adaptation  of  the  existing  measures  with  regard  to  imports  of  the  product  concerned 
into  the  EU10  would  not  be  such  as  to  significantly  undermine  the  desired  level  of 
trade defence.  

(19)  To  this  end,  different  ways  were  examined  on  how  to  best  protect  the  Community 
Industry  from  injurious  dumping  whilst,  at  the  same  time,  taking  into  account  the 
Community  interest  aspects  by  lessening  the  economic  shock  of  the  anti-dumping 
duties  to  traditional  buyers  in  the  EU10  during  the  period  of  economic  adjustment 
following Enlargement.  

(20) 

It  was  considered  that  this  could  be  best  achieved  by  allowing  the  traditional  export 
volumes  from  Russia  to  the  EU10  to  be  imported  free  of  anti-dumping  duties  for  a 
transitional  period.  In  this  context,  any  exports  to  the  EU10  above  these  traditional 
export volumes would be subject to the normal anti-dumping duties, as would exports 
to the EU15. 

6. Undertakings 

(21)  Having  assessed  the  different  options  on  how  best  to  allow  these  traditional  export 
flows to the EU10 to continue, it was considered that the most appropriate means was 
through  the  acceptance  of  voluntary  undertakings  from  the  cooperating  parties  with 
element  for  quantitative  ceilings.  Therefore,  in  accordance  with  Article  8  (2)  of  the 
basic  Regulation,  undertakings  were  suggested  by  the  Commission  to  the  exporting 
producers  concerned  and,  as  a  result,  undertakings  were  subsequently  offered  by  2 
exporting producers of the product concerned in Russia.  

(22) 

(23) 

In this context, it should be noted that in accordance with Article 22 (c) of the basic 
Regulation,  the  special  circumstances  of  Enlargement  were  taken  into  account  when 
the  terms  of  the  undertakings  were  established.  They  constitute  a  special  measure  in 
that  they  provide  a  temporary  way  of  adapting  existing  measures  for  the  enlarged 
Community of 25 Member States.  

Import volumes (“ceilings”) were therefore established for the exporting producers in 
Russia,  using  as  a  basis  their  average  traditional  export  volumes  to  EU10  in  2001, 
2002  and  2003.  It  should  be  noted,  however,  that  abnormal  increases  in  export 
volumes to the EU10 observed in the last few months of 2003 and the first months of 
2004 were deducted from their traditional volumes used for determining the ceilings.  

6 

 
 
  
 
(24)  When  selling  to  the  EU10  under  the  terms  of  their  undertakings,  the  exporting 
producers concerned should agree to broadly respect their traditional selling patterns to 
individual  customers  in  the  EU10.  The  exporting  producers  should  therefore  aware 
that  any  undertaking  offer  can  only  be  considered  as  practicable,  and  therefore 
acceptable if, for sales covered by the undertakings, they would broadly maintain such 
traditional patterns of trade with their customers in the EU10.  

(25)  The  exporting  producers  should  also  be  aware  that,  under  the  terms  of  the 
undertakings,  if  it  is  found  that  these  sales  patterns  change  significantly,  or  that  the 
undertakings become in any way difficult or impossible to monitor, the Commission is 
entitled  to  withdraw  acceptance  of  the  company’s  undertaking  resulting  in  definitive 
anti-dumping  duties  being  imposed  in  its  place  at  the  level  specified  in  Regulation 
(EC)  No  151/2003  or  it  may  adjust  the  level  of  the  ceiling,  or  it  may  take  other 
remedial action.  

(26)  Accordingly, any undertaking offers respecting the above conditions may be accepted 

by the Commission by Commission Regulation. 

D. AMENDMENT OF REGULATION (EC) NO XX/2004 

(27) 

In  view  of  the  above,  it  is  necessary  to  provide,  in  the  event  of  undertakings  being 
accepted  by  the  Commission  in  a  subsequent  Commission  Regulation,  for  the 
possibility  to  exempt  imports  to  the  Community  made  under  the  terms  of  such 
undertakings  from  the  anti-dumping  duty  imposed  by  Regulation  (EC)  No  151/2003 
by amending that Regulation.  

HAS ADOPTED THIS REGULATION: 

Article 1 

Article  2  of  Regulation  (EC)  No  151/2003  as  last  amended  by  Regulation  (EC) 
No XX/2004 is hereby replaced by the following: 

‘Article 2 

1. 

Imports  declared  for  release  into  free  circulation  shall  be  exempt  from  the  anti-
dumping duties imposed by Article 1, provided that they are produced by companies 
from  which  undertakings  are  accepted  by  the  Commission  and  whose  names  are 
listed  in  the  relevant  Commission  Regulation,  as  from  time  to  time  amended,  and 
have  been  imported  in  conformity  with  the  provisions  of  the  same  Commission 
Regulation.  

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2. 

The imports mentioned in paragraph 1 shall be exempt from the anti-dumping duty 
on condition that:  

(a) 

(b) 

the  goods  declared  and  presented  to  customs  correspond  precisely  to  the 
product described in Article 1, 

a  commercial  invoice  containing  at  least  the  elements  listed  in  the  Annex  is 
presented  to  Member  States'  customs  authorities  upon  presentation  of  the 
declaration for release into free circulation; and 

(c) 

the  goods  declared  and  presented  to  customs  correspond  precisely  to  the 
description on the commercial invoice.’  

Article 2 

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

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

Done at Brussels,  

For the Council 
The President   

8 

 
 
  
 
 
 
ANNEX  

The  following  elements  shall  be  indicated  on  the  commercial  invoice  accompanying  the 
company's sales of grain oriented electrical sheets to the Community which are subject to the 
Undertaking: 

1. 

2. 

3. 

4. 

5. 

6. 

The  heading  "COMMERCIAL  INVOICE  ACCOMPANYING  GOODS  SUBJECT 
TO AN UNDERTAKING". 

The  name  of  the  company  mentioned  in  Article  1  of  Commission  Regulation 
[INSERT NUMBER] issuing the commercial invoice. 

The commercial invoice number. 

The date of issue of the commercial invoice. 

The TARIC additional code under which the goods on the invoice are to be customs 
cleared at the Community frontier.  

The exact description of the goods, including: 

– 

– 

– 

– 

– 

Product Code Number (PCN) used for the purposes of the investigation and the 
undertaking (e.g. PCN I, PCN 2 etc), 

plain  language  description  of  the  goods  corresponding  to  the  PCN  concerned 
(e.g. PCN 1: PCN 2: etc), 

company product code number (CPC) (if applicable),  

CN code, 

quantity (to be given in tonnes). 

7. 

The description of the terms of the sale, including: 

– 

– 

– 

– 

price per tonne, 

the applicable payment terms, 

the applicable delivery terms, 

total discounts and rebates. 

8. 

Name  of  the  company  acting  as  an  importer  in  the  Community  to  which  the 
commercial invoice accompanying goods subject to an undertaking is issued directly 
by the company. 

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9. 

The name of the official of the company that has issued the invoice and the following 
signed declaration: 

“I, the undersigned, certify that the sale for direct export to the European Community of the 
goods  covered  by  this  invoice  is  being  made  within  the  scope  and  under  the  terms  of  the 
undertaking  offered  by  [company],  and  accepted  by  the  European  Commission  through 
Regulation (EC) No […]. I declare that the information provided in this invoice is complete 
and correct.” 

10