Proposal for a Council Regulation terminating the partial interim review of the anti-dumping measures applicable to imports of certain tube or pipe fittings, of iron or steel, originating, inter alia, in Thailand
Date: 2005-03-02
Institutions: European Commission
Subjects: Thailand, anti-dumping legislation, originating product, piping

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 02.03.2005 
COM(2005) 67 final 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the anti-dumping measures applicable to 
imports of certain tube or pipe fittings, of iron or steel, originating, inter alia, in 
Thailand 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In  April  2004,  following  a  request  by  the  Defence  Committee  of  the  Steel  Butt-Welding 
Fittings  Industry  alleging  that  a  Thai  company  was  practising  dumping,  the  Commission 
initiated an interim review of the anti-dumping measures applicable to imports of certain tube 
or pipe fittings, of iron or steel, originating in Thailand, limited to dumping in respect of this 
company. 

The subsequent investigation has shown that the dumping margin is de minimis, i.e. below the 
2% threshold set out in Article 9(3) of Regulation (EC) No 384/96 (the basic Anti-Dumping 
Regulation). Accordingly, the interim review should be terminated without the imposition of 
any measures. 

It is therefore proposed that the Council adopt the attached proposal for a Council Regulation 
which should be published in the Official Journal no later than 20 April 2005. 

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Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the anti-dumping measures applicable to 
imports of certain tube or pipe fittings, of iron or steel, originating, inter alia, in 
Thailand 

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, and in particular Article 11(3) thereof, 

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

Whereas: 

A. PROCEDURE 

1. 

Previous procedure and existing measures 

(1) 

The  Council,  by  Regulation  (EC)  No  584/962,  imposed  an  anti-dumping  duty  on 
imports  of  certain  tube  or  pipe  fittings,  of  iron  or  steel,  originating,  inter  alia,  in 
Thailand.  Following  an  interim  review,  the  measures  applying  to  imports  from  Thai 
Benkan  Co.  Ltd,  a  Thai  exporting  producer,  were  repealed  in  July  2000  by  Council 
Regulation  (EC)  1592/20003.  Subsequently,  following  an  expiry  and  an  interim 
review, the measures in force with regard to the remaining Thai exporting producers 
were maintained by Council Regulation (EC) No 964/20034 and amended by Council 
Regulation (EC) No 1496/20045. 

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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). 
OJ L 84, 3.4.1996, p. 1. 
OJ L 182, 21.7.2000, p. 1. 
OJ L 139, 6.6.2003, p. 1. 
OJ L 275, 25.8.2004, p. 1. 

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(2) 

(3) 

(4) 

(5) 

(6) 

2.  Request for a review 

A  request  for  a  partial  interim  review  limited  to  dumping  in  respect  of  Thai  Benkan 
Co.  Ltd  was  lodged  by  the  Defence  Committee  of  the  Steel  Butt-Welding  Fittings 
Industry  of  the  European  Union  on  behalf  of  four  Community  producers.  These 
companies represent a major proportion of the Community production of the product 
concerned (‘the applicant’). 

The applicant alleged increased dumping based on a comparison of Thai Benkan Co. 
Ltd  domestic  prices  with  its  export  prices  of  certain  tube  or  pipe  fittings,  of  iron  or 
steel,  to  the  Community.  On  this  basis,  the  dumping  margin  calculated  would  be 
significantly  higher  than  the  one  found  in  the  previous  investigation  that  led  to  the 
repeal of the measures with respect to imports from Thai Benkan Co. Ltd. 

3. 

Investigation 

Having  determined  that  the  request  contained  sufficient  prima  facie  evidence,  the 
Commission initiated, by notice of 21 April 20046, a partial interim review of dumping 
as far as Thai Benkan Co. Ltd was concerned, in accordance with Article 11(3) of the 
basic Regulation. 

The  Commission  officially  advised  the  applicant  and  the  exporting  producer 
concerned,  the  Community  industry  as  well  as  the  authorities  of  Thailand  of  the 
initiation of the proceeding. Interested parties were given the opportunity to make their 
views known in writing and to request a hearing within the time limit set in the notice 
of initiation. 

In  order  to  obtain  the  information  deemed  necessary  for  its  investigation,  the 
Commission sent a questionnaire to Thai Benkan Co. Ltd. The company was informed 
that  non-cooperation  could  lead  to  the  application  of  Article  18  of  the  basic 
Regulation. It was also made aware of the consequences of non-cooperation. 

(7) 

A  reply  to  the  questionnaire  was  received  within  the  prescribed  time  limits.  The 
Commission carried out a verification visit at the company's premises. 

(8) 

The applicant made its views known in writing and was granted a hearing.  

(9) 

The investigation period covered the period from 1 April 2003 to 31 March 2004. 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

(10)  The product concerned is, as defined in the investigation which led to the imposition 
of the existing measures, 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, originating in Thailand (the ‘product concerned’), normally declared within 
CN codes ex 7307 93 11, ex 7307 93 19, ex 7307 99 30 and ex 7307 99 90.  

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OJ C 96, 21.4.2004, p. 38 

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(11)  The investigation showed that the product concerned exported to the Community from 
Thailand and the tube or pipe fittings, of iron or steel, produced and sold domestically 
in  Thailand  have  the  same  basic  physical  and  technical  characteristics  and  the  same 
uses.  They  are  therefore  to  be  considered  as  like  products  within  the  meaning  of 
Article 1(4) of the basic Regulation.  

1. 

Normal value 

C. DUMPING 

(12) 

In accordance with Article 2(2) of the basic Regulation, it was first examined whether 
the company’s domestic sales of the like product were representative, i.e. whether the 
total volume of such sales represented at least 5% of the producer's total export sales 
volume  to  the  Community.  The  investigation  showed  that  domestic  sales  were 
representative. 

(13)  For  the  purposes  of  determining  normal  value  the  sales  on  the  domestic  market  to  a 
company  related  to  Thai  Benkan  Co.  Ltd  were  not  taken  into  consideration,  in 
accordance with Article 2(1) of the basic Regulation. 

(14)  Subsequently,  those  types  of  the  like  product  sold  by  the  company  to  independent 
domestic  buyers  that  were  identical  or  directly  comparable  with  the  types  sold  for 
export to the Community were identified. 

(15)  For each type sold by the exporting producer on the domestic market and found to be 
directly  comparable  with  the  product  type  sold  for  export  to  the  Community,  it  was 
established  whether  domestic  sales 
independent  buyers  were  sufficiently 
to 
representative for the purposes of Article 2(2) of the basic Regulation. Domestic sales 
of  a  particular  type  of  the  like  product  were  considered  sufficiently  representative 
when  the  total  domestic  sales  volume  of  that  type  during  the  IP  represented  5%  or 
more  of  the  total  sales  volume  of  the  comparable  type  of  the  product  concerned 
exported  to  the  Community.  Domestic  sales  were  found  to  be  representative  for  the 
majority of product types.  

(16) 

It  was  subsequently  examined  whether  these  product  types  identified  in  recital  (14) 
above could be considered as being sold in the ordinary course of trade by establishing 
the  proportion  of  profitable  sales  of  the  product  type  in  question.  Where  the  sales 
volume of a product type, sold at a net sales price equal to or above the calculated cost 
of production, represented more than 80% of the total sales volume of that type, and 
where  the  weighted  average  price  of  that  type  was  equal  to  or  above  the  cost  of 
production,  normal  value  was  based  on  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.  Where  the  volume  of 
profitable sales of the product type represented 80% or less of the total sales volume of 
that  type,  or  where  the  weighted  average  price  of  that  type  was  below  the  cost  of 
production,  normal  value  was  based  on  the  actual  domestic  price,  calculated  as  a 
weighted  average  of  profitable  sales  of  that  type  only,  provided  that  these  sales 
represented 10% or more of the total sales volume of that type. For the great majority 
of  product  types,  it  was  possible  to  use  the  domestic  prices  to  determine  the  normal 
value.  

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(17) 

(18) 

In  cases  where  there  were  no  domestic  sales  of  a  comparable  type  to  independent 
buyers, or where the volume of profitable sales represented less than 10% of the total 
sales  volume  of  that  type,  it  was  considered  that  this  particular  type  was  sold  in 
insufficient  quantities  for  the  domestic  price  to  provide  an  appropriate  basis  for  the 
establishment of the normal value. In this regard, constructed normal value was used, 
in accordance with Article 2(3) of the basic Regulation.  

In accordance with Article 2(3) of the basic Regulation, normal value was constructed 
on the basis of the exporting producer’s own cost of manufacturing plus a reasonable 
amount  for  selling,  general  and  administrative  (‘SG&A’)  costs  and  for  profit.  Given 
the representativity of domestic sales of the like product, this calculation was based on 
the  company’s  own  SG&A  costs.  For  the  profit  margin,  in  accordance  with  the  first 
sentence of Article 2(6) of the basic Regulation, the profits from the sales of the like 
product in the ordinary course of trade were used.  

(19)  For some of the SG&A cost categories, the Commission was unable to establish that 
the  cost  allocation  declared  in  the  questionnaire  reply  reasonably  reflected  the  costs 
associated with the production and sales of the product concerned. The company was 
given the opportunity to comment on this during the verification visit, but was unable 
to  explain  the  inconsistencies.  Therefore,  and  in  accordance  with  the  provisions  of 
Article  2(5)  of  the  basic  Regulation,  the  allocation  of  those  costs  was  made  on  a 
turnover basis when determining the cost of manufacturing.  

2. 

Export price 

(20)  The export prices were established on the basis of the prices  paid or  payable for  the 
product  concerned  when  sold  for  consumption  in  the  Community  to  the  first 
independent customer in accordance with Article 2(8) of the basic Regulation. 

3. 

Comparison 

(21)  For  the  purposes  of  ensuring  a  fair  comparison  between  the  normal  value  and  the 
export price at an ex-works level and at the same level of trade, due allowance in the 
form of adjustments was made for differences that were claimed and demonstrated to 
affect  prices  and  price  comparability  in  accordance  with  Article  2(10)  of  the  basic 
Regulation.  Adjustments  were  made  in  respect  of  transport,  insurance  and  handling 
and credit costs, where applicable and justified.  

4. 

Dumping margin 

(22) 

In  accordance  with  Article  2(11)  and  2(12)  of  the  basic  Regulation,  the  dumping 
margin was established on the basis of a comparison of the weighted average normal 
value with the weighted average export prices per product type, as determined above.  

(23)  The dumping margin expressed as a percentage of the CIF Community frontier price, 
duty  unpaid,  was  found  to  be  below  the  2%  threshold  set  out  in  Article  9(3)  of  the 
basic Regulation. 

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D.  MEASURES 

(24) 

In view of the above finding, it is considered that, in accordance with Article 11(3) of 
the  basic  Regulation,  the  current  review  should  be  terminated  and  the  anti-dumping 
duty  of  0%  imposed  by  Regulation  (EC)  No  964/2003  and  confirmed  by  Council 
Regulation  (EC)  No  1496/2004,  on  imports  of  the  product  concerned  produced  and 
exported to the Community by Thai Benkan Co. Ltd. should be maintained. 

E. 

CONCLUSION 

(25) 

Interested parties were informed of the essential facts and considerations on the basis 
of which it is intended to terminate the proceeding and were given the opportunity to 
comment and to be heard. All comments received were taken into account but none of 
them were such as to change the above-mentioned conclusions, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The partial interim review of the anti-dumping measures applicable to imports of certain tube 
or pipe fittings, of iron or steel, originating, inter alia, in Thailand, falling within CN codes ex 
7307  93  11,  ex  7307  93  19,  ex  7307  99  30  and  ex  7307  99  90,  insofar  as  these  measures 
concern the Thai exporter Thai Benkan Co. Ltd, is hereby terminated.  

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 

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