Commission Regulation (EC) No 1995/2004 of 19 November 2004 accepting undertakings offered in connection with the anti-dumping proceeding concerning imports of certain grain oriented electrical sheets and strips of silicon-electrical steel with a width of more than 500 mm originating in the Russian Federation and continuing to make imports of certain grain oriented electrical sheets originating in the Russian Federation subject to registration
Date: 2004-11-19
Institutions: European Commission
Subjects: Russia, anti-dumping duty, anti-dumping legislation, import, originating product, plate, sheet

20.11.2004

EN

Official Journal of the European Union

L 344/21

COMMISSION REGULATION (EC) No 1995/2004

of 19 November 2004

accepting undertakings offered in connection with the anti-dumping proceeding concerning imports
of certain grain oriented electrical sheets and strips of silicon-electrical steel with a width of more
than 500 mm originating in the Russian Federation and continuing to make imports of certain grain
oriented electrical sheets originating in the Russian Federation subject to registration

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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
basic Regulation), and in particular Articles 8, 21 and 22(c)
thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

(1)

(2)

(3)

(measures)

By Regulation (EC) No 990/2004 (2), following interim
the Council amended Regulation (EC) No
reviews,
151/2003 (3)
anti-
dumping duty on imports of certain grain oriented elec-
trical sheets with a width of more than 500 mm (the
product concerned) originating in the Russian Federation
(Russia).

imposing a definitive

Journal of

the initiation of a partial

In March 2004, the Commission announced, through the
the
publication of a notice in the Official
European Union (4),
interim
review of
the product
the measures on imports of
concerned originating in Russia to examine whether
they should be adapted to take account of certain conse-
quences of the enlargement of the European Union to 25
Member States (enlargement).

The Council concluded that it was in the interest of the
Community to provide for the temporary adaptation of
the existing measures so as to avoid a sudden and exces-
sively negative impact on importers and users in the ten

(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) OJ L 182, 19.5.2004, p. 5.
(3) OJ L 25, 30.1.2003, p. 7.
(4) OJ C 70, 20.3.2004, p. 15.

immediately

following enlargement.

new Member States acceding to the European Union (the
EU-10)
It was
considered that the best means of achieving this was
through the acceptance of undertakings offered by the
cooperating parties, with an element
for quantitative
ceilings.

(4)

(5)

(6)

(7)

Accordingly, by Regulation (EC) No 1000/2004 (5) the
Commission accepted, as a special measure, short-term
undertakings offered by: (i) an exporting producer of the
product concerned in Russia, Novolipetsk Iron & Steel
Corporation jointly with a company in Switzerland
(Stinol AG); and (ii) a second exporting producer of the
product concerned in Russia, OOO Viz Stal jointly with
its related company in Switzerland (Duferco SA).

In order to provide for an exemption from the anti-
dumping duties afforded by the acceptance of the under-
takings, Regulation (EC) No 151/2003 was amended by
Council Regulation (EC) No 989/2004 (6).

It was stipulated in Regulation (EC) No 1000/2004 that
the acceptance of the undertakings would be limited to
an initial period of six months (the original period)
the
without prejudice
measures and that they would lapse after this period,
unless the Commission considered it appropriate to
extend their period of application.

to the normal duration of

Accordingly, the Commission has examined whether the
exceptional and negative conditions for end users, distri-
butors and consumers in the EU-10 which led to the
acceptance of
the undertakings still exist. As part of
the overall appraisal, an evaluation of the compliance
of
the companies concerned with their undertakings
was also made.

(5) OJ L 183, 20.5.2004, p. 10.
(6) OJ L 182, 19.5.2004, p. 1.

L 344/22

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Official Journal of the European Union

20.11.2004

B. APPRAISAL

1. Content of the current undertakings

have also contributed to the decrease in the quantities
imported into the EU-10 following enlargement.

inter alia,

The existing undertakings offered by the companies
in accordance with
oblige them,
their traditional pattern of
trade to customers in the
EU-10 within the framework of quantitative ceilings
established on the basis of previous, traditional export
flows to the EU-10.

to export

(13)

(8)

(9)

(10)

The terms of the undertakings also oblige the signatory
companies to provide the Commission with regular and
detailed information, in the form of a monthly report of
their sales to the EU-10 (or resales by any related parties
in the Community) and to accept verification visits by
the Commission.
to be able to fully
monitor the effectiveness of the undertakings, written
agreement was received from the exporters’ traditional
customers in the EU-10 that they too would allow on-
the-spot verification visits at their premises.

In order, also,

2. Compliance with the current undertakings

the volumes

Verification visits to the exporting producers and certain
of their traditional customers in the EU-10 confirmed
that
exported to the EU-10 by the
companies concerned had not exceeded the level of the
quantitative ceilings stipulated in the undertakings.
In
addition, it was found that the companies were broadly
respecting their traditional patterns of trade with indi-
vidual customers in the EU-10. Moreover, according to
the information available, there have been no apparent
‘spill-overs’ from the EU-10 into the EU-15 of imports of
the product concerned which had benefited from the
exemption to the anti-dumping duties afforded by the
undertakings.

3. Analysis of conditions for continued acceptance
of undertakings

(11) Analysis of

the monthly reports

submitted to the
Commission by the companies concerned backed up by
available official statistical data and the findings of the
on-the-spot verification visits showed that the volumes of
the product concerned exported to the EU-10 by the
companies concerned had declined following enlar-
gement and that the quantities established in the under-
takings had not been used. This lack of ‘take-up’ of the
quantitative ceilings in the first
the
original period of application of the undertakings was
due in part to one of the two producing exporters reor-
this exporting
ganising its sales operations. However,
producer
intended to use the export
volumes established for its quantitative ceiling in the
latter part of the original period.

few months of

stated that

it

(12)

In addition, as indicated in recital 23 of Regulation (EC)
No 989/2004, abnormal increases in export volumes to
the EU-10 were found prior to enlargement in 2003 and
the first months of 2004. It is considered that this might

C. CONCLUSION

1. Acceptance of undertakings

In view of the foregoing and the limited amount of
imports into the EU-10,
it is considered too soon to
conclude that the transitional measures have achieved
their intended results and that the negative conditions
which necessitated the undertakings no longer exist.
For this reason, and as the terms of the undertakings
have been observed during the initial period of their
application
is
concluded that the acceptance of undertakings offered
by the companies concerned for a further period is
justified.

concerned,

companies

the

by

it

(14)

this further period,

In relation to the length of
it is
considered that a period of application of more than
six months would negate the notion of undertakings
being of a transitional nature, therefore, their acceptance
will only be from 21 November 2004 to 20 May 2005
(the final period).

(15) With regard to the level of the quantitative ceilings to be
applied for the final period, it should be noted that these
have been calculated following the same methodology as
was used to establish the quantitative ceilings for the
original period (however, unlike in the original period
when deductions from the traditional volumes were
made to take account of abnormal
import volumes
prior to enlargement, no such adjustments were made
for determining the quantitative ceilings for the final
period).

(16)

(17)

(18)

can

their

be monitored,

concerned have

the import ceilings and in order that

In conformity with Regulation (EC) 989/2004,
the
undertakings oblige each individual producing exporter
the
to respect
the
undertakings
exporting
producers
also agreed to broadly
respect
traditional selling patterns to individual
customers in the EU-10. The exporting producers are
also aware that if it is found that these sales patterns
the undertakings become
change significantly, or that
in any way difficult or
the
Commission is entitled to withdraw acceptance of the
company’s undertaking resulting in definitive
anti-
dumping duties being imposed in its place, or it may
adjust
the ceiling, or it may take other
remedial action.

impossible to monitor,

the level of

It is also a condition of the undertakings that if they are
breached in any way, the Commission will be entitled to
withdraw acceptance thereof resulting in definitive anti-
dumping duties being imposed in their place.

The companies will also provide the Commission with
regular and detailed information concerning their exports
to the Community, meaning that the undertakings can be
monitored effectively by the Commission.

20.11.2004

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Official Journal of the European Union

L 344/23

(19)

relevant

In order that the Commission can monitor effectively the
companies’ compliance with the undertakings, when the
request for release for free circulation pursuant to an
undertaking is presented to the
customs
authority, exemption from the duty will be conditional
upon the presentation of an invoice containing at least
the items of information listed in the Annex to Regu-
lation (EC) 989/2004. This level of information is also
necessary to enable customs authorities to ascertain with
sufficient precision that the shipment corresponds to the
commercial documents. Where no such invoice
is
presented, or when it does not correspond to the
product presented to customs,
the appropriate anti-
dumping duty will instead be payable.

2. Disclosure to interested parties

(20) All interested parties, which had previously made them-
selves known, were advised of the intention to accept
undertakings. The Community Industry did not express
any negative comments regarding acceptance of under-
takings. No comments were received from any other
interested parties which caused the Commission to alter
its views on the matter.

D. REGISTRATION OF IMPORTS

(21)

In Regulation (EC) No 1000/2004, customs authorities
were directed to register imports into the Community of
the product concerned originating in Russia exported by
the companies from which undertakings were accepted
and for which an exemption from the anti-dumping
duties imposed by Regulation (EC) No 151/2003 was
sought.

(22) As acceptance of the undertakings for the original period
began on 21 May 2004, and as acceptance of the under-
takings for the final period will follow on directly from
the original period, these two periods are to be regarded
as one continuous period. In accordance, however, with
the basic Regulation,
Article 14(5) of
the maximum
therefore
registration is nine months,
period for
customs authorities should register such imports only
until 20 February 2005,

HAS ADOPTED THIS REGULATION:

Article 1

The undertakings offered by the exporting producers
1.
mentioned below,
anti-dumping
in connection with the
proceeding concerning imports of grain oriented cold-rolled
sheets and strips of silicon-electrical steel with a width of
more than 500 mm originating in the Russian Federation are
hereby accepted.

Country

Russian
Federation

Russian
Federation

Company

Produced by Novolipetsk Iron & Steel
Corporation, Lipetsk, Russia, and sold
to
by Stinol AG, Lugano, Switzerland,
its
in the Community
first customer
acting as an importer

Produced by OOO Viz Stal, Ekaterinburg,
Russia, and sold by Duferco SA, Lugano,
Switzerland,
independent
customer in the Community acting as
an importer

to the

first

TARIC addi-
tional code

A524

A525

to
Customs authorities are hereby directed, pursuant
2.
Article 14(5) of Regulation (EC) No 384/96 to continue to
take the appropriate steps to register until 20 February 2005
imports into the Community of grain oriented cold-rolled sheets
and strips of silicon-electrical steel with a width of more than
500 mm originating in the Russian Federation and falling
within CN code 7225 11 00 (sheets of a width of 600 mm
or more) and ex 7226 11 00 (sheets of a width of more than
500 mm but less than 600 mm) produced and sold by the
companies listed in paragraph 1.

Article 2

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Union and
shall remain in force until 20 May 2005.

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

Done at Brussels, 19 November 2004.

For the Commission

Pascal LAMY
Member of the Commission