Council Regulation (EC) No 1496/2004 of 18 August 2004 amending Council Regulation (EC) No 964/2003 imposing a definitive anti-dumping duty on imports of certain tube or pipe fittings originating, inter alia, in Thailand
Date: 2004-08-18
Institutions: Council of the European Union
Subjects: Thailand, anti-dumping duty, import, originating product, piping

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Official Journal of the European Union

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1496/2004

of 18 August 2004

amending Council Regulation (EC) No 964/2003 imposing a definitive anti-dumping duty on
imports of certain tube or pipe fittings originating, inter alia, in Thailand

THE COUNCIL OF THE EUROPEAN UNION,

(3)

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
countries not members of the European Community (1)
(the
thereof,
basic Regulation) and in particular Article 11(3)

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Previous investigations and existing measures

The measures currently in force on imports of certain
tube or pipe-fittings, of
iron or steel originating in
Thailand are a definitive anti-dumping duty imposed
originally by Council Regulation (EC) No 584/96 (2), as
amended by Council Regulation (EC) No 1592/2000 (3)
and confirmed, following an expiry review investigation,
by Council Regulation (EC) No 964/2003 (4).

The measures applicable to these imports consist of an ad
valorem duty, except for two Thai exporting producers
from which undertakings were accepted by Commission
Decision 96/252/EC (5), as amended by Commission
Decision 2000/453/EC (6).

(4)

(5)

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Council

(6)

Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(2) OJ L 84, 3.4.1996, p. 1.
(3) OJ L 182, 21.7.2000, p. 1.
(4) OJ L 139, 6.6.2003, p. 1.
(5) OJ L 84, 3.4.1996, p. 46.
(6) OJ L 182, 21.7.2000, p. 25.

In April 2001, the Commission simultaneously initiated
an expiry review investigation (7) pursuant
to Article
11(2) of the basic Regulation and an ex officio interim
review pursuant to Article 11(3) of the basic Regulation.
The review pursuant to Article 11(2) of the basic Regu-
lation was concluded by Regulation (EC) No 964/2003
maintaining the existing measures. However, the interim
review, pursuant to Article 11(3) of the basic Regulation,
remained open at the conclusion of the expiry review.

2. Grounds for the review

the

the

the

imports

concerning

appropriateness of

form of
originating

the basic Regulation,

In April 2001, the Commission initiated, on its own
to
initiative, an ex officio interim review, pursuant
to
Article 11(3) of
in order
examine
the
in
measures
Thailand. In this respect, it should be noted that enfor-
cement problems have been encountered in the moni-
toring of the undertakings accepted from two exporters
i.e. Awaji Sangyo (Thailand) Co. Ltd and
in Thailand,
TTU Industrial Corp. Ltd (the exporters concerned),
with consequences on the
the
measures. After consulting the Advisory Committee, the
Commission initiated an investigation limited to the form
the review was
of
announced simultaneously to the
the
expiry review by which the existing measures were
confirmed.

the measures. The initiation of

initiation of

effect of

remedial

the

officially
the

advised
exporting producers

applicant
The Commission
in
Community producers,
importers/traders, user industries, and asso-
Thailand,
ciations of users known to be concerned, as well as
the representatives of
the
initiation of the review. The Commission also gave the
parties directly concerned the opportunity to make their
views known in writing and to request a hearing.

the Thai Government of

Following disclosure of the results of the investigation
pursuant
the basic Regulation, a
Thai exporting producer, Awaji Sangyo (Thailand) Co.
Ltd (the applicant), lodged a request in April 2002 for

to Article 11(2) of

(7) OJ C 103, 3.4.2001, p. 5.

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the

anti-dumping measures
an interim review of
applicable to it,
limited to its situation of dumping,
pursuant to Article 11(3) of the basic Regulation. The
request alleged that changed circumstances of a lasting
nature had led to a considerably reduced normal value,
which in turn has reduced or eliminated dumping so that
the continued imposition of the measures at the existing
level in respect of its imports was no longer necessary to
offset dumping.

7307 93 19 99)
7307 99 30 98)
7307 99 90 98).

ex 7307 99 30

(Taric

and

ex 7307 99 90

(Taric

code
code

Like product

(7)

(8)

(9)

after

determined,
that

consulting
sufficient evidence existed for

the Advisory
Having
the
Committee,
initiation of
the Commission
published a notice of initiation (1) and commenced an
investigation.

an interim review,

The Commission officially advised the representatives of
the exporting country and the applicant of the initiation
of the interim review limited to dumping and gave all
parties directly concerned the opportunity to make their
views known in writing and to request a hearing. The
Commission also sent a questionnaire to the applicant.

The Commission sought and verified all
information it
deemed necessary for the purpose of the determination
of dumping and carried out a verification visit at the
premises of the applicant.

(10)

The investigation limited to dumping covered the period
from 1 January 2001 until 31 December 2002 (the
investigation period or IP).

B. PRODUCT CONCERNED AND LIKE PRODUCT

Product concerned

(11)

The product concerned subject to the interim reviews is
the same as the product concerned in the previous inves-
tigations, i.e. certain tube or pipe fittings (other than cast
fittings, flanges and threaded fittings), of iron or steel
(not including stainless steel), with a greatest external
diameter not exceeding 609,6 mm, of a kind used for
butt-welding or other purposes (product concerned or
tube or pipe fittings), originating in Thailand.
is
currently classifiable within CN codes ex 7307 93 11
(Taric code 7307 93 11 99), ex 7307 93 19 (Taric code

It

(1) OJ C 17, 24.1.2003, p. 2.

(12) As in the previous investigations,

these investigations
have shown that the tube or pipe fittings of iron or
steel, produced in Thailand and sold domestically
and/or exported to the Community have the same
basic physical and chemical characteristics as the tube
or pipe
sold in the Community by the
Community producers and, therefore, are considered to
be like products within the meaning of Article 1(4) of the
basic Regulation.

fittings

C. DUMPING WITH REGARD TO THE APPLICANT

1. Normal value

(13) As far as the determination of normal value is concerned,
it was first established whether
the applicant's total
domestic sales of the like product were representative
to the
in comparison with its
Community.
the
basic Regulation, this was found to be the case since
the applicant's domestic sales volume constituted at
least 5 % of
sales volume to the
Community.

In accordance with Article 2(2) of

total export

export

sales

total

its

(14)

It was then examined whether the applicant's domestic
sales were sufficiently representative for each of
the
product
types exported to the Community. This was
considered to be the case when, during the IP, the total
domestic sales volume of a product type represented 5 %
or more of the total sales volume of the same type
exported to the Community. On this basis,
it was
found that domestic sales of all but one product type
exported to the Community were representative.

(15) An examination was also made as

to whether

the
domestic sales of each product type could be regarded
as having been made in the ordinary course of trade, by
establishing the proportion of profitable sales to inde-
pendent customers of
In cases
where the sales volume of a product type, sold at a net
sales price equal to or above the calculated unit cost of
production, represented 80 % or more of the total sales
volume of that type, and where the weighted average
price of that type was equal to or above the unit cost
on
of

the type in question.

value was

production,

normal

based

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the actual domestic price, calculated as a weighted
average of the prices of all domestic sales of that type
made during the IP,
irrespective of whether these sales
were profitable or not. In cases where the volume of
profitable sales of a product type represented 80 % or
less, but at least 10 % of the total sales volume, normal
value was based on the actual domestic price, calculated
as a weighted average of profitable domestic sales of that
type only.

(16)

In cases where the volume of profitable sales of any type
of fittings represented less than 10 % of the total sales
volume of that type on the domestic market,
it was
considered that this particular type was sold in insuf-
ficient quantities for the domestic price to provide an
appropriate basis for the establishment of the normal
value.

(17) Wherever domestic prices of a particular type sold by the
applicant could not be used in order to establish normal
value, another method had to be applied. In this regard,
in the absence of other exporting producers and of any
other reasonable method, constructed normal value was
used.

In all cases where constructed normal value was used and
in accordance with Article 2(3) of the basic Regulation,
normal value was constructed by adding to the manufac-
turing costs of
the exported types, adjusted where
necessary, a reasonable amount for selling, general and
administrative expenses (SG&A) and a reasonable margin
of profit. To this end, the Commission examined whether
the SG&A incurred and the profit
realised by the
exporting producer concerned on the domestic market
constituted
SG&A
expenses were considered reliable since the domestic
sales volume of
the company concerned could be
regarded as representative. The domestic profit margin
was determined on the basis of domestic sales made in
the ordinary course of trade.

data. Actual

domestic

reliable

(18)

(19)

(20)

(21)

(22)

3. Comparison

the same level of

For the purposes of a fair comparison by type on an ex-
factory basis and at
trade, due
allowance was made for differences which were claimed
and demonstrated to affect price comparability between
the export price and the normal value. These adjustments
were made in respect of
import charges, discounts,
transport, insurance, handling costs, packing, credit and
the
commissions in accordance with Article 2(10) of
basic Regulation.

4. Dumping margin

to calculate

In order
the
Commission compared the weighted average normal
value to the weighted average export price to the
Community.

the dumping margin,

comparison,

as described above,

showed the
The
existence of dumping for the applicant. The dumping
the
margin established, expressed as a percentage of
total
level, duty
unpaid, was 7,4 %.

at Community frontier

cif value

5. Lasting nature of changed circumstances and like-

lihood of recurrence of dumping

(23)

In accordance with the Commission's normal practice, it
was examined whether the changed circumstances could
reasonably be said to be of a lasting nature.

(24)

It was found that there were no reasons to expect that
the domestic sales prices and normal value would not
remain stable for the foreseeable future.

(25)

The Commission examined the possible development of
export prices as a consequence of the application of a
lower duty rate. In this regard, it was considered that the
undertaking which had been accepted in the framework
of the original proceeding had the effect of limiting the
the Community market. As
applicant's
mentioned in recital 35, it was found that this type of
undertaking was no longer appropriate. Consequently, it
was examined whether export sales subject to a lower
duty could cause a significant increase of imports of the
to the
product concerned produced by the applicant
Community.

sales

to

2. Export price

Since all export sales of the product concerned were
made directly to an independent customer
in the
Community,
established in
accordance with Article 2(8) of the basic Regulation on
the basis of the prices actually paid or payable when sold
for export to the Community.

export price was

the

(26)

The investigation revealed that the applicant's production
capacity increased considerably since the original investi-
gation period and to a lesser extent over the last three
years, whilst its capacity utilisation rate remained close to
100 %.

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(27) However,

the

investigation also showed that

the
company exports most of its production to well-estab-
lished other third country markets. In fact, the applicant
exported more than 90 % of
the
product concerned during the IP, almost entirely to
other third countries. The exports to the other third
countries tripled since the original
investigation period
and continued to go up during the last three years. It
was also established that
the exports to other third
countries were sold at prices around 25 % higher than
those to the EC.

its production of

(28)

Since the applicant does not have much spare capacity,
which could be used to increase sales to the Community
if the anti-dumping measures were lowered, the above
including those concerning exports to third
findings,
countries, and in particular export prices
to these
countries, are viewed as evidence that it is unlikely that
there will be in the foreseeable future a recurrence of
dumped imports at levels similar to those established
in the previous investigation.

(29)

It is consequently concluded that the changed circum-
stances,
in particular the considerably reduced normal
value, are of a lasting nature. In view of the reduced
level of dumping, it is therefore considered appropriate
to amend the measures insofar as they concern the
applicant.

(32)

The interested parties were informed of the essential facts
and considerations on the basis of which it was intended
to recommend that the anti-dumping duty imposed by
Regulation (EC) No 964/2003 be amended with regard
to the applicant.

D. INTERIM REVIEW LIMITED TO THE FORM OF THE

MEASURES

(33)

The undertakings originally accepted from the two
exporters concerned, were in essence quantitative under-
takings according to which the companies undertook to
ensure that their exports to the Community were made
within an overall volume ceiling.

(34)

In accordance with Article 8(1) of the basic Regulation,
the aim of undertakings is to eliminate the injurious
effect of dumped imports, which is achieved through
the exporter raising its prices or ceasing exports at
dumped price levels. The investigations have shown
that the type of undertakings originally accepted in the
present case in 1996 which simply limited the quantity
of imports into the Community failed to raise prices to
non-injurious levels and thus restore fair trade on the
in this case, the under-
Community market. Therefore,
takings in their present form are not considered as an
appropriate and effective means of eliminating the
injurious effect of dumping. In addition, the Commission
is not in a position to control effectively whether the
quantities of
concerned exported are
the product
limited to those specified in the undertakings.

6. Conclusions

(30) According to Article 9(4) of the basic Regulation, the
amount of
the anti-dumping duty should not exceed
the margin of dumping established, but it should be
less than that margin if such a lesser duty would be
the Community
adequate to remove the injury of
the applicant had been
industry. As
the duty for
calculated on the basis of
the
the dumping margin,
duty should be adjusted to the lower dumping margin
found in this investigation, namely 7,4 %.

(35)

It was therefore concluded that the undertakings in force
are not appropriate any longer.

(36)

The interested parties were informed of all the essential
facts and considerations leading to this conclusion.

(31)

It
follows from the above that with regard to the
applicant, the anti-dumping duty originally imposed by
Regulation (EC) No 584/96 and confirmed by Regulation
(EC) No 964/2003 should be amended.

(37)

The anti-dumping measure applicable to imports of
certain tube or pipe fittings, of iron or steel, originating,
inter alia, in Thailand as confirmed by Regulation (EC) No
964/2003, should be amended with regard to (i) the

E. PROPOSED MEASURES

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applicant in view of the lower dumping margin found in
the investigation and (ii) the exporters concerned in view
of the findings of the interim review limited to the form
of the measures.

HAS ADOPTED THIS REGULATION:

Article 1

Article 1(2) of Regulation (EC) No 964/2003 shall be

1.
replaced by the following:

Country

Rate of duty

TARIC additional
code

People's Republic of China

Thailand

Except:

58,6 %

58,9 %

—

A 999

Awaji Sangyo (Thailand) Co. Ltd
Samutprakarn

7,4 %

8850

Co.
Benkan
Thai
Prapadaeng-Samutprakarn

Ltd

0 %

A 118’

Article 1(3)

2.
964/2003 shall be repealed.

and Article 2 of Regulation (EC) No

The rate of the definitive anti-dumping duty applicable
free-at-Community-frontier price, before duty,

‘2.
to the net,
shall be as follows for the products manufactured by:

Article 2

This Regulation shall enter into force on the day following that
of 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, 18 August 2004.

For the Council
The President

B. BOT