Proposal for a Council Regulation further amending Regulation (EC) No 1601/2001 imposing a definitive anti-dumping duty and definitively collecting the provisional anti-dumping duty imposed on imports of certain iron or steel ropes and cables originating in the Czech Republic, Russia, Thailand and Turkey
Date: 2005-03-10
Institutions: European Commission
Subjects: anti-dumping duty, anti-dumping legislation, import, metals, non-flat product, third country

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.03.2005 
COM(2005) 80 final 

Proposal for a 

COUNCIL REGULATION 

further amending Regulation (EC) No 1601/2001 imposing a definitive anti-dumping 
duty and definitively collecting the provisional anti-dumping duty imposed on imports 
of certain iron or steel ropes and cables originating in the Czech Republic, Russia, 
Thailand and Turkey 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On  17  March  2004,  the  Commission  initiated  a  partial  interim  review  of  the  antidumping 
measures applicable to imports of certain iron or steel ropes and cables originating in Turkey. 

The review was initiated following a request from a Turkish exporter concerning the need for 
the  continuation,  removal  or  amendment  of  the  existing  17,8  %  anti-dumping  duty,  and  in 
particular with regard to changed circumstances as far as the dumping margin was concerned. 

The investigation confirmed that no dumping was taking place during the review investigation 
period. This changed  situation can be explained by structural changes  that have occurred in 
this  company,  notably  a  significant  investment  in  new  machinery  which  has  led  to  reduced 
costs,  higher  quality  and  an  increase  in  export  prices.  The  new  machines  constitute  a  long-
term investment, and it can therefore be concluded that the changed situation is of a lasting 
nature. 

It  is  therefore  proposed  to  amend  the  existing measures  by  removing  the  duty  as  far  as  this 
company is concerned. Concerning all other exporters in Turkey, the existing measures would 
be maintained. 

Member States were consulted and supported this proposal unanimously. 

It is proposed that the Council adopt the attached proposal for a Regulation which should be 
published in the Official Journal as soon as possible. 

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Proposal for a 

COUNCIL REGULATION 

further amending Regulation (EC) No 1601/2001 imposing a definitive anti-dumping 
duty and definitively collecting the provisional anti-dumping duty imposed on imports 
of certain iron or steel ropes and cables originating in the Czech Republic, Russia, 
Thailand and Turkey 

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 Community1 (‘the basic 
Regulation’), and in particular Article 11(3) thereof, 

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

Whereas: 

A. PREVIOUS PROCEDURE 

On 5 May 2000, the Commission initiated an anti-dumping proceeding2 on imports of 
certain iron or steel ropes and cables originating, inter alia, in Turkey. 

This  proceeding  ultimately  resulted  in  a definitive  anti-dumping  duty  being  imposed 
by Council Regulation (EC) No 1601/20013, as last amended by Regulation (EC) No 
1268/20034, in order to eliminate the injurious effects of dumping. 

B. REQUEST FOR AN INTERIM REVIEW 

A request for a partial interim review of Regulation (EC) No 1601/2001 was received 
from  Has  Çelik  ve  Halat  Sanayi  Ticaret  A.S.  (‘Has  Çelik’,  or  ‘the  applicant’),  a 
Turkish exporting producer of certain iron or steel ropes and cables subject to the anti-
dumping measures in force. 

This  request  pursuant  to  Article  11(3)  of  the  basic  Regulation  claimed  that  the 
circumstances  with  regard  to  dumping  on  the  basis  of  which  the  measures  in  force 
were established have changed and that these changes are of a lasting nature.  

OJ L 56, 6.3.1996, p. 1, Regulation as last amended by Council Regulation (EC) No 461/2004 (OJ L 77, 
13.3.2004, p. 12). 
OJ C 127, 5.5.2000, p. 12. 
OJ L 211, 4.8.2001, p. 1. 
OJ L 180, 18.7.2003, p. 23. 

(1) 

(2) 

(3) 

(4) 

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(5) 

(6) 

(7) 

(8) 

(9) 

According to the request, the applicant has undergone structural changes which have 
had  a  significant  impact  on  the  normal  value.  Furthermore,  it  was  claimed  that  a 
comparison of normal value based on its costs or domestic prices and export prices to 
the Community would lead to a reduction of dumping significantly below the level of 
the current measures applying to imports from the applicant, i.e. 17,8%. Therefore, the 
continued imposition of measures at the existing levels, which were based on the level 
of dumping previously established, would no longer be necessary to offset dumping. 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed for the initiation of a partial interim review, the Commission published a notice 
(‘Notice  of  Initiation’)5  and  commenced  an  investigation,  limited  in  scope  to  the 
examination of dumping by the applicant. 

C. PROCEDURE 

The  Commission  officially  advised  the  representatives  of  the  exporting  country  and 
the  applicant  of  the  initiation  of  the  partial  interim  review  and  gave  all  the  parties 
directly  concerned  the  opportunity  to  make  their  views  known  in  writing  and  to 
request a hearing. A submission was received from EWRIS, the Liaison Committee of 
E.U. Wire Rope Industries (the complainant in the original case). 

The  Commission  also  sent  a  questionnaire  to  the  applicant,  which  replied  within  the 
time limits set in the Notice of Initiation. 

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

(10)  The 

investigation  of  dumping  covered 

the  period  from  1  July  2003 

to 

29 February 2004 (‘the investigation period’). 

Product concerned 

D. PRODUCT 

(11)  The product concerned is the same as in the investigation which lead to the imposition 
of  the  existing  measures  (‘the  previous  investigation’),  i.e.  iron  or  steel  ropes  and 
cables, including locked coil ropes, excluding ropes and cables of stainless steel, with 
a maximum cross-sectional dimension exceeding 3 mm, with fittings attached or not 
(referred  to  by  the  industry  as  steel  wire  ropes  or  ‘SWR’),  originating  in  Turkey, 
currently  classifiable  within  CN  codes  7312  10  82,  7312  10  84,  7312  10  86, 
7312 10 88 and 7312 10 99. These CN codes are given only for information. 

Like product 

(12)  As in the previous investigation, this investigation has shown that the SWR produced 
in  Turkey  by  the  applicant  and  sold  on  the  Turkish  market  or  exported  to  the 
Community  have  the  same  basic  physical  characteristics  and  the  same  uses,  and 

5 

OJ C 67, 17.3.2004, p. 5. 

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therefore are to be considered a like product within the meaning of Article 1(4) of the 
basic Regulation. 

Normal Value 

E. DUMPING 

(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 in 
comparison  with  its  total  export  sales  to the  Community.  In  accordance  with  Article 
2(2)  of  the  basic  Regulation  this  was  found  to  be  the  case  since  its  domestic  sales 
volume constituted at least 5% of its total export sales volume to the Community. 

(14)  For  each  of  the  types  sold  by  the  applicant  on  its  domestic  market  and  found  to  be 
directly comparable to the types exported to the Community, it was examined whether 
domestic sales were sufficiently representative for the purposes of Article 2(2) of the 
basic  Regulation.  This  was  considered  to  be  the  case  when,  during  the  investigation 
period, the total domestic sales volume of a type represented 5% or more of the total 
sales  volume  of  the  same  type  exported  to  the  Community.  For  most  of  the  types 
investigation  period  a  comparable 
the 
exported 
representative type sold on the domestic market was found. 

the  Community  during 

to 

(15)  For  the  product  types  meeting  the  5%  test,  an  examination  was  then  made  as  to 
whether the domestic sales of each comparable type could be regarded as having been 
made  in  the  ordinary  course  of  trade,  by  establishing  the  proportion  of  sales  to 
independent customers of the type in question not made at a loss. In all cases, sales of 
a  type  not  made  at  a  loss  represented  more  than  80%  of  the  total  domestic  sales 
volume  of  that  type  and,  therefore,  normal  value  was  based  on  a  weighted  average 
price of all domestic sales made during the investigation period.  

(16)  For the product types exported to the Community where no comparable types sold on 
the  domestic  market  were  found,  normal  value  was  constructed  on  the  basis  of  the 
costs  of  manufacturing  incurred  by  the  applicant  for  the  exported  product  types  in 
question  plus  a  reasonable  amount  for  selling,  general  and  administrative  costs 
(‘SG&A’) and profits in accordance with Article 2(3) and 2(6) of the basic Regulation. 
The  SG&A  were  based  on  the  applicant’s  domestic  sales  of  the  like  product.  The 
profit margin was based on the applicant’s domestic sales of the like product made in 
the ordinary course of trade. 

Export Price 

(17)  Since  all  export  sales  of  the  product  concerned  were  made  directly  to  independent 
customers  in  the  Community,  the  export  price  was  established  on  the  basis  of  such 
prices paid or payable, in accordance with Article 2(8) of the basic Regulation. 

Comparison 

(18)  The  comparison  of  normal  value  with  export  price  was  made  on  an  ex-factory  basis 
and at the same level of trade. For the purpose of ensuring a fair comparison, account 
was taken, in accordance with Article 2(10) of the basic Regulation, of differences in 
factors which were claimed and demonstrated to affect prices and price comparability, 

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i.e. transport costs, insurance costs, handling, loading and ancillary costs, credit costs 
and commissions. 

Dumping margin 

(19)  The  comparison  was  made  between  the  weighted  average  adjusted  normal  value  per 
product type and the weighted average net ex-works export price for the comparable 
product type, in accordance with Article 2(11) of the basic Regulation. 

(20)  The comparison as described above showed the existence of no dumping. 

F. LASTING NATURE OF CHANGED CIRCUMSTANCES 

(21) 

(22) 

In  accordance  with  Article  11(3)  of  the  basic  Regulation,  it  was  also  examined 
whether the changed circumstances could reasonably be said to be of a lasting nature.  

In  this  respect,  the  investigation  revealed  that  the  applicant  has  undergone  structural 
changes affecting considerably the production structure and organisation, resulting in a 
substantially  higher  production  efficiency  that  led  to  a  drop  in  production  costs  and 
thus  reduced  normal  value  as  compared  to  the  investigation  period  used  in  the 
previous  investigation  (1  April  1999  until  31  March  2000).  During  the  same  period, 
export prices have increased and no reason was found to indicate that this increase was 
temporary. 

(23) 

It is consequently concluded that the changed circumstances, in particular the increase 
in export prices to the Community combined with a substantial decrease in production 
costs, are of a lasting nature.  

G. ANTI-DUMPING MEASURES 

(24) 

In  the  absence  of  dumping,  it  is  therefore  considered  appropriate  to  repeal  the 
measures insofar as they concern the applicant. 

(25)  The  interested  parties  were  informed  of  the  facts  and  considerations  on  the  basis  of 
which it was intended to recommend a further amendment of Council Regulation (EC) 
No 1601/2001 and were given an opportunity to comment. 

(26)  Subsequently, EWRIS submitted some general comments relating mainly to increasing 
prices of raw materials after the investigation period. EWRIS did not put in question 
the  findings  concerning  dumping  as  outlined  above,  but  nevertheless  expressed 
concern about the possibility that the applicant may resume dumping in the future. 

(27)  Concerning the prices of raw materials, it is noted that the prices of raw materials may 
have increased after the investigation period, but this could not have been taken into 
account  in  the  dumping  calculation  for  the  applicant.  In  this  case,  the  main  raw 
material is wire rod, a basic steel product, which is a commodity with prices normally 
fluctuating  within  short  periods.  Therefore,  any  price  increase  of  such  raw  material 
cannot be considered to be of a lasting nature, which could put into question the above 
findings. 

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(28)  Finally,  it  should  be  noted  that,  since  the  repeal  of  the  measures  concerns  only  the 
applicant, and not Turkey as a whole, the applicant remains subject to the proceeding 
and may be reinvestigated in any subsequent review carried out for Turkey pursuant to 
Article 11(6) of the basic Regulation, 

HAS ADOPTED THIS REGULATION: 

Article 1 

In the table of Article 1(3) of Council Regulation (EC) No 1601/2001 the rate of duty (%) for 
the company in Turkey Has Çelik ve Halat Sanayi Ticaret A.S., Hacilar Yolu 8. Km Kayseri 
Turkiye (TARIC additional code A220), shall read 0. 

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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