Proposal for a Council Regulation amending Council Regulation (EC) No 2320/97 as last amended by Regulation (EC) No 235/2004 imposing definitive anti-dumping duties on imports of certain seamless pipes and tubes of iron or non-alloy steel originating in, inter alia, Russia and Romania
Date: 2004-06-22
Institutions: European Commission
Subjects: Romania, Russia, anti-dumping duty, import, piping, tube

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.06.2004 
COM(2004) 440 final 

. 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 2320/97 as last amended by Regulation (EC) 
No 235/2004 imposing definitive anti-dumping duties on imports of certain seamless 
pipes and tubes of iron or non-alloy steel originating in, inter alia, Russia and Romania 

. 

(presented by the Commission) 

EN 

   EN 

 
 
 
EXPLANATORY MEMORANDUM 

In  November  2002,  the  Commission  published  a  notice  of  initiation  of  an  expiry  and  an 
interim review of the anti-dumping measures applicable to imports of certain seamless pipes 
and  tubes,  of  iron  or  non-alloy  steel  originating  in  Poland,  Russia,  the  Czech  Republic, 
Romania and the Slovak Republic, imposed by Council Regulation (EC) No 2320/97. 

On 1 May 2004 the European Union enlarged to include ten new Member States. As from that 
date,  the  anti-dumping  measures  in  force  in  the  Community  of  15  Member  States  were 
automatically  extended  to  be  applied  also  by  the  new  Member  States  to  imports  from  third 
countries. Measures and ongoing investigations against the new Member States automatically 
lapsed  on  the  same  date.  In  the  case  of  the  above  mentioned  reviews  the  measures  and 
investigation lapsed in respect of Poland, the Czech Republic and the Slovak Republic. 

As a result, after 1 May 2004, the measures only continue to apply to Russia and Romania. 
The expiry and interim reviews are ongoing with respect to Russia and Romania. 

In  June  2003,  a  Commission  Decision  2003/382/EC  (the  “Competition  Decision”),  was 
published in respect of two cases of infringement of the provisions of Article 81 (1) of the EC 
Treaty. Some of the Community producers were involved in these infringements. 

Following  the  publication  of  the  Competition  Decision  some  exporters  alleged  that  this  had 
affected  the  findings  of  the  original  investigation.  Consequently,  the  possible  impact  and 
consequences of the anti-competitive behaviour on the anti-dumping measures in force were 
examined. 

A partial overlap of the product scope, the companies involved and the time period of the two 
proceedings  was  found.  Therefore,  it  cannot  be  confirmed  with  certainty  that  the  overall 
market conditions would have been the same in the absence of this anti-competitive conduct. 

In consequence of the examination of the impact of the Competition Decision on the existing 
anti-dumping measures, it is proposed to no longer apply the measures established by Council 
Regulation (EC) No 2320/97 pending the outcome of the ongoing expiry and interim reviews. 
It  is  considered  appropriate  to  continue  the  current  review  investigations  based  on  a  time 
period clearly not affected by the above-mentioned anti-competitive behaviour. 

EN 

2 

   EN 

 
Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 2320/97 as last amended by Regulation (EC) 
No 235/2004 imposing definitive anti-dumping duties on imports of certain seamless 
pipes and tubes of iron or non-alloy steel originating in, inter alia, Russia and Romania 

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 (the ‘basic 
Regulation’)1, in particular Articles 9, 11 (2) and (3) thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the  Advisory 
Committee2, 

Whereas: 

A. Procedure 

1. Measures in force  

(1) 

By  Council  Regulation  (EC)  No  2320/973,  the  Council  imposed  definitive  anti-
dumping  duties  on  imports  of  certain  seamless  pipes  and  tubes,  of  iron  or  non-alloy 
steel,  originating  in  Hungary,  Poland,  Russia,  the  Czech  Republic,  Romania  and  the 
Slovak  Republic.  The  Regulation  was  amended  by  Council  Regulation  (EC)  No 
190/20004 and subsequently by Council Regulation (EC) No 235/20045. Undertakings 
offered by exporting producers in Hungary, Poland, the Czech Republic, Romania and 
the  Slovak  Republic  were  accepted  by  Commission  Decision  97/790/EC6  and 
undertakings offered by exporting producers in Russia were accepted by Commission 
Decision 2000/70/EC7. 

1 

2 
3 
4 
5 
6 
7 

EN 

56, 

6.3.1996, 

OJ  L 
(OJ L 77, 13.3.2004, p. 12). 
OJ C […] […], p. […] 
OJ L 322, 25.11.1997, p. 1. 
OJ L 23, 28.1.2000, p. 1. 
OJ L 40, 12.2.2004, p. 11. 
OJ L 322, 25.11.1997, p. 63. 
OJ L 23, 28.1.2000, p. 78. 

p.1, 

as 

last 

amended 

by  Regulation 

(EC)  No 

461/2004 

3 

   EN 

 
                                                 
(2) 

(3) 

(4) 

(5) 

(6) 

On 1 May 2004 the European Union enlarged to include ten new Member States. As 
from that date, the anti-dumping measures in force in the Community of 15 Member 
States  were  automatically  extended  to  be  applied  also  by  the  new  Member  States  to 
imports from third countries. Measures against the new Member States automatically 
lapsed on the same date.  

The measures currently in force apply to imports originating in Russia (anti-dumping 
duty  of  26,8 %  and  three  price  undertakings)  and  in  Romania  (anti-dumping  duties 
ranging from 9,8 to 38,2 % and four price undertakings). 

2. Interim and expiry reviews 

On 23 November 2002, the Commission published a notice of initiation of an expiry 
and an  interim review of the  anti-dumping  measures  applicable  to  imports of  certain 
seamless pipes and tubes, of iron or non-alloy steel originating in Poland, Russia, the 
Czech Republic, Romania and the Slovak Republic8. 

The  review  was  requested  by  the  Defence  Committee  of  the  seamless  steel  tube 
industry  of  the  European  Union  on  behalf  of  producers  representing  a  major 
proportion of the total Community production of certain seamless pipes and tubes, of 
iron or non-alloy steel.  

The  request  for  the  expiry  review  is  based  on  the  allegation  of  continuation  or 
recurrence  of  dumping  and  injury  to  the  Community  industry.  The  request  for  the 
interim  review  is  based  on  the  grounds  that  the  form  and  level  of  the  measures  are 
inappropriate to counteract the dumping which is causing the injury. 

(7) 

The review investigations are still ongoing in respect of Russia and Romania. 

3. Product concerned 

(8) 

The categories of products covered by the expiry and interim reviews (Article 11 (2) 
and (3) of the basic Regulation) are the same as the ones in Council Regulation (EC) 
No 2320/97, i.e.  

a) 

b) 

c) 

seamless  pipes,  of  iron  or  non-alloy  steel,  of  a  kind  used  for  oil  and  gas 
pipelines, of an external diameter not exceeding 406,4 mm; 

seamless tubes of circular cross-section, of iron or non-alloy steel, cold-drawn 
or cold-rolled, other than precision tubes; 

other  tubes  of  circular  cross-section,  of  iron  or  non-alloy  steel,  other  than 
threaded or threadable, of an external diameter not exceeding 406,4 mm 

(“the  product  concerned”)  currently  classifiable  within  CN  codes  ex  7304  10  10,  ex 
7304 10 30, 7304 31 99, 7304 39 91 and 7304 39 93. These CN codes are given only 
for information. 

8 

OJ C 288, 23.11.2002, p. 2. 

EN 

4 

   EN 

 
 
                                                 
B. Assessment of the relation between Commission Decision No 2003/382/EC and 
Council Regulation (EC) No 2320/97 

1. Proceeding on anti-competitive conduct under Article 81 of the EC Treaty 

(9) 

In  Commission  Decision  2003/382/EC  (the  “Competition  Decision”),  dating  from 
December 1999, published on 6 June 20039, several Community producers were fined 
for involvement in two cases of infringement of the provisions of Article 81 (1) of the 
EC Treaty. 

(10)  Following  the  adoption  of  the  Competition  Decision,  it  was  initially  considered  that 
the potential link with Council Regulation (EC) No 2320/97, if any, was not such as to 
require  a  re-examination  of  the  findings  of  that  Regulation.  However,  following  the 
publication  of  the  Competition  Decision,  one  of  the  interested  parties  has  raised  the 
issue  of  a  possible  impact  of  the  anti-competitive  conduct  on  the  anti-dumping 
measures in force, and has provided further information regarding issues related to the 
injury  and  causation  findings  of  Council  Regulation  (EC)  No  2320/97.  This 
Regulation  aims  at  examining  whether  the  Competition  Decision  should  have  any 
consequences for the anti-dumping measures currently in force. 

2. Product concerned by the Competition Decision 

(11)  The products concerned subject to the Competition Decision are seamless carbon-steel 
pipes and tubes, in particular those used by the oil and gas industry. They include two 
major categories, i.e. project line pipes for carrying oil and gas over medium and short 
distances (“LP”) on the one hand and borehole pipes and tubes, commonly called oil 
country tubular goods (“OCTG pipes and tubes”) on the other hand. Whereas LP are 
classifiable  within  CN  code  ex  7304 10,  the  OCTG  pipes  and  tubes  are  classifiable 
within CN code 7304 21.  

(12)  The  product  scope  of  the  anti-dumping  investigation  is  wider  than  the  products 
concerned  subject  to  the  Competition  Decision.  However,  a  comparison  shows  that 
product categories falling under CN code ex 7304 10 10 and CN code ex 7304 10 30, 
i.e.  line  pipe  of  a  kind  used  for  oil  or  gas  pipelines  of  an  external  diameter  not 
exceeding 406,4 mm appear to be affected by both the anti-dumping investigation and 
the competition infringement, even if this is only for a limited part of the Community 
market of the product concerned.  

3. Producers concerned 

(13) 

In the anti-dumping investigation ten Community producers cooperated, representing 
more  than  90  %  of  the  total  Community  production  of  the  product  subject  to 
investigation. Three out of the ten companies were also involved in the infringement 
of Article 81 (1) of the EC Treaty. 

9 

OJ L 140, 6.6.2003, p. 1. 

EN 

5 

   EN 

 
                                                 
4. Infringement during investigation period and period considered 

(14)  The period for the examination of dumping and injury lasted from 1 September 1995 
to 31 August 1996 (“investigation period”) whereas the examination of trends relevant 
for  the  injury  assessment  in  the  anti-dumping  investigation  covered  the  period  from 
January  1992  to  the  end  of  the  investigation  period,  i.e.  31  August  1996  (“period 
considered”). 

(15)  Two  infringements  have  taken  place  within  the  investigation  period  and  the  period 

considered:  

a) 

b) 

In the EU-Japan cartel, the producers concerned have infringed the provisions 
of  Article  81  (1)  of  the  EC  Treaty  by  participating  together  with  other 
producers  in  an  agreement  providing,  inter  alia,  for  the  observance  of  their 
respective  domestic  markets  for  seamless  standard  threaded  OCTG  pipes  and 
tubes and LP. The infringement lasted from 1990 to 1995, although it could not 
be clearly proven when in 1995 the operations actually stopped. 

In a parallel European cartel the producers infringed the provisions of Article 
81 (1) of  the EC  Treaty by concluding, in the context of the  anti-competitive 
conduct mentioned under recital 15(a), contracts which resulted in a sharing of 
the supplies of plain end OCTG pipes and tubes. The infringement lasted from 
1991 to 1999 and from 1993 to 1997 for one of the producers concerned in the 
anti-dumping investigation. 

(16)  The  infringement  mentioned  under  recital  15(b)  does  not  directly  affect  the  anti-
dumping investigation since the product concerned falls under CN Code 7304 21, i.e. 
outside the scope of the anti-dumping investigation.  

(17)  With  regard  to  the  infringement  mentioned  under  recital  15(a)  the  overlap  in  time 
between the investigation period of the anti-dumping proceeding and the operation of 
the EU-Japan cartel runs from 1 September 1995 until 31 December 1995. With regard 
to the period considered the overlap is from January 1992 to 31 December 1995. 

5. Analysis 

(18)  As  stated  above,  there  is  a  partial  overlap  between  the  anti-dumping  proceeding  and 
the  occurrence  of  the  anti-competitive  conduct.  The  product  subject  to  the  anti-
competitive  conduct  falls  partially  within  the  product  scope  of  the  anti-dumping 
investigation  (recital  12).  The  investigation  period  and  the  period  considered  of  the 
anti-dumping proceeding and the period for which the infringement of the competition 
rules  was  found,  correspond  partly  (recital  17).  Finally,  a  part  of  the  Community 
producers involved in the anti-competitive conduct were also part of the Community 
industry as defined in the anti-dumping proceeding (recital 13). 

EN 

6 

   EN 

 
to  a 

limited  extent 

(19)  Given  that  the  overlap  in  the  product  scope,  the  companies  involved  and  the  time 
period of the two proceedings is only partial, it has been found that the impact of this 
anti-competitive  conduct  has  affected 
the  anti-dumping 
investigation on which the definitive duties imposed in 1997 were based. In addition, 
when excluding the data of the companies found to have infringed Article 81 (1) of the 
EC Treaty, the results appear to remain comparable to those calculated on the basis of 
the data of the ten cooperating Community producers, including those participating in 
the  above-mentioned  anti-competitive  conduct,  i.e.  injurious  dumping  would  still 
exist. Thus, it is highly unlikely that the anti-competitive behaviour of the Community 
producers  has  had  a  material  impact  on  the  original  findings  of  the  anti-dumping 
investigation. However, it cannot be confirmed with certainty that the overall market 
conditions would have been the same in the absence of this anti-competitive conduct. 

6. Conclusion 

(20) 

In  view  of  the  above,  it  is  considered  appropriate  to  no  longer  apply  the  measures 
established by Council Regulation (EC) No 2320/97. This is in line with the principles 
of  sound  administration  and  good  administrative  practice.  Furthermore,  it  is  to  be 
noted  that  in  the  context  of  the  ongoing  interim  and  expiry  reviews  new  findings 
should be available within the near future to permit an assessment for the future on the 
basis  of  data  clearly  not  affected  by  the  anti-competitive  conduct.  Until  the  ongoing 
reviews are concluded, the duties should no longer be collected. It also follows from 
the  above  that  undertakings  currently  in  force  are  no  longer  applied  pending  the 
outcome of the ongoing expiry and interim reviews. 

(21) 

Interested parties have been informed of the intention to no longer apply the measures 
established by Council Regulation (EC) No 2320/97. They were also granted a period 
within which they could make representations subsequent to this disclosure. 

(22)  The oral and written arguments submitted by the parties were considered and, where 

appropriate, were taken into account. 

HAS ADOPTED THIS REGULATION: 

Council  Regulation  (EC)  No  2320/97  as  last  amended  by  Regulation  (EC)  No  235/2004  is 
hereby amended as follows: 

Article 1 

After Article 7 a new Article 8 is inserted: 

Article 1 to Article 3 shall no longer be applied.’ 

‘Article 8 

EN 

7 

   EN 

 
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 

EN 

8 

   EN