Council Regulation (EC) No 989/2004 of 17 May 2004 amending Regulation (EC) No 151/2003 imposing a definitive anti-dumping duty on imports of certain grain oriented electrical sheets originating in Russia
Date: 2004-05-17
Institutions: Council of the European Union
Subjects: Russia, anti-dumping duty, import, originating product, sheet

19.5.2004

EN

Official Journal of the European Union

L 182/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 989/2004

of 17 May 2004

amending Regulation (EC) No 151/2003 imposing a definitive anti-dumping duty on imports of
certain grain oriented electrical sheets originating in Russia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
(‘the
countries not members of the European Community (1)
basic Regulation’), and in particular Articles 8, 11(3), 21 and
22(c) thereof,

(5)

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

Whereas:

A. PROCEDURE

1. Measures in force

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

interested parties known to Commission,

All
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,
information and to
to submit
provide supporting evidence within the time limit set
out
interested parties
who so requested and showed that there were reasons
why they should be heard were granted a hearing.

in the notice of

initiation. All

By Regulation (EC) No 990/2004 (2)
the Council
amended Regulation (EC) No 151/2003 imposing a defi-
the
nitive
Community of certain grain oriented electrical sheets
(‘the product concerned’) originating in Russia (3).

anti-dumping

imports

duty

into

on

the duty applicable to the net,

The rate of
free-at-
for
Community-frontier price, before duty,
set
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.

is

(6)

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

(a) Community producers Association:

— European Confederation of

Iron and Steel

Industries (Eurofer);

2. Investigation

(b) Exporting producers:

On 20 March 2004 the Commission announced through
the publication of a notice in the Official Journal of the
European Union (4)
interim
review of measures in force (‘measures’) pursuant
to
Article 11(3) and 22(c) of the basic Regulation.

the initiation of a partial

review was

launched at

the
The
Commission in order to examine whether, as a conse-
quence of the enlargement of the European Union on 1
May 2004 (‘Enlargement’) and bearing in mind the aspect
the
of Community interest,

there is a need to adapt

initiative of

the

(1) 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).

(2) See page 5 of this Official Journal.
(3) OJ L 25, 30.1.2003, p. 7.
(4) OJ C 70, 20.3.2004, p. 15.

— Novolipetsky Iron & Steel Corporation (NLMK),

Lipetsk,

— VizStal Ltd., Ekaterinburg.

B. PRODUCT UNDER CONSIDERATION

(7)

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 7226 11 00. This product is used
for electromagnetic appliances and in installations such
as power and distribution transformers.

(1)

(2)

(3)

(4)

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Official Journal of the European Union

19.5.2004

(8)

(9)

(10)

(11)

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-magne-
tisation losses. In general, both sides of the product are
covered with a thin isolating coating.

C. RESULTS OF THE INVESTIGATION

1. Submissions of

interested parties in exporting

countries

Two Russian exporting producers and the Russian autho-
rities 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 from the Community Industry

The Community Industry stated that although average
prices in the EU10 were significantly lower than those
in the European Union as constituted 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 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 the 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.

(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
in the
therefore concluded that
duty,

it was

is

it

the measures
Community interest
currently in force in order to avoid a sudden and exces-
sively negative effect on all interested parties.

to gradually adapt

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 appli-
cation 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)

(19)

(20)

In such circumstances,
it can reasonably be concluded
that it 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.

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
the Community
economic shock of the anti-dumping duties to traditional
buyers in the EU10 during the period of economic
adjustment following the Enlargement.

aspects by

lessening

interest

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
flows to the EU10 to
allow these traditional export
continue,
it was considered that the most appropriate
means was through the acceptance of voluntary under-
takings from the cooperating parties with element for
in accordance with
quantitative
Article 8(2) of the basic Regulation, undertakings were
suggested by the Commission to the exporting producers
concerned and, as a result, undertakings were subse-
quently offered by 2 exporting producers of
the
product concerned in Russia.

ceilings. Therefore,

(22)

(23)

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

the Enlargement were

duty imposed by Regulation (EC) No 151/2003, by
amending that Regulation,

HAS ADOPTED THIS REGULATION:

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.
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.

It should be noted, however,

(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 be aware that any under-
taking offer can only be considered as practicable, and
therefore acceptable if, for sales covered by the under-
takings,
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
the
undertakings become in any way difficult or impossible
the Commission is entitled to withdraw
to monitor,
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.

that

(26) Accordingly, any undertaking offers respecting the above
conditions may be accepted by the Commission, by
Commission Regulation.

Article 1

Article 2 of Regulation (EC) No 151/2003, as last amended by
Regulation (EC) No 990/2004,
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 Regu-
lation, as from time to time amended, and have been
imported in conformity with the provisions of the same
Commission Regulation.

The imports mentioned in paragraph 1 shall be

2.
exempt from the anti-dumping duty on condition that:

(a)

goods

declared

the
customs
correspond precisely to the product described in
Article 1;

presented

and

to

(b) 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)

goods

the
declared
correspond precisely
commercial invoice.’.

and
to the

presented

customs
to
description on the

Article 2

The text set out in the Annex to this Regulation shall be added
to Regulation (EC) No 151/2003.

D. AMENDMENT OF REGULATION (EC) No 990/2004

(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 possi-
bility to exempt imports to the Community made under
the terms of such undertakings from the anti-dumping

Article 3

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

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Official Journal of the European Union

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

Done at Brussels, 17 May 2004.

For the Council
The President

B. COWEN

ANNEX
‘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. The heading “COMMERCIAL INVOICE ACCOMPANYING GOODS SUBJECT TO AN UNDERTAKING”.

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

commercial invoice.

3. The commercial invoice number.

4. The date of issue of the commercial invoice.

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

frontier.

6. 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 (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.

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 [INSERT NUMBER]. I declare that the information provided in
this invoice is complete and correct.”

’