Council Regulation (EC) No 463/2005 of 16 March 2005 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: 2005-03-16
Institutions: Council of the European Union
Subjects: Thailand, anti-dumping duty, anti-dumping legislation, import, piping

23.3.2005

EN

Official Journal of the European Union

L 77/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 463/2005

of 16 March 2005

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
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 (‘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:

(1)

A. PROCEDURE

1. Previous procedure and existing measures

The Council, by Regulation (EC) No 584/96 (2), 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producer, were repealed in July 2000 by Council Regu-
lation (EC) 1592/2000 (3). 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
964/2003 (4) and amended by Council Regulation (EC)
No 1496/2004 (5).

the European Union on behalf of
(‘the

Industry of
Community
companies
a major proportion of
Community production of the product concerned.

applicant’).

producers

represent

four
These
the

(3)

(4)

(5)

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
the
iron or steel,
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.

to the Community. On this basis,

3. Investigation

Having determined that the request contained sufficient
prima facie evidence, the Commission initiated, by notice
of 21 April 2004 (6), a partial interim review of dumping
as
in
far as Thai Benkan Co. Ltd was concerned,
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 oppor-
tunity to make their views known in writing and to
in the
request a hearing within the time limit
notice of initiation.

set

2. Request for a review

(2)

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

(6)

(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 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 275, 25.8.2004, p. 1.

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.

(6) OJ C 96, 21.4.2004, p. 38.

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Official Journal of the European Union

23.3.2005

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

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

The investigation period (‘IP’) covered the period from
1 April 2003 to 31 March 2004.

it was established whether domestic sales
Community,
to independent buyers were sufficiently 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 repre-
sented 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 repre-
sentative for the majority of product types.

B. PRODUCT CONCERNED AND LIKE PRODUCT

(16)

The product concerned is, as defined in the investigation
which led to the imposition of the existing measures,
fittings,
certain tube or pipe fittings (other than cast
(not
flanges and threaded fittings), of
including
external
steel), with a
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
ex 7307 99 30
codes
and ex 7307 99 90.

iron or steel
greatest

ex 7307 93 19,

ex 7307 93 11,

stainless

the product concerned
The investigation showed that
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 Regu-
lation.

C. DUMPING

1. Normal value

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 repre-
sentative.

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.

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.

For each type sold by the exporting producer on the
domestic market and found to be directly comparable
to the
with the product

export

type

sold

for

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 estab-
lishing 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 pro-
type represented 80 % or
fitable sales of the product
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 pro-
fitable 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.

(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
regard,
the normal value.
constructed normal value was used, in accordance with
Article 2(3) of the basic Regulation.

In this

In accordance with Article 2(3) of the basic Regulation,
the
normal value was constructed on the basis of
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.

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

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Official Journal of the European Union

L 77/3

(19)

(20)

(21)

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,
those costs was
the allocation of
made on a turnover basis when determining the cost
of manufacturing.

2. Export price

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

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 (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)

(24)

(25)

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.

D. MEASURES

it is considered that,

In view of the above finding,
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 Regulation (EC) No
1496/2004 on imports of
concerned
produced and exported to the Community by Thai
Benkan Co. Ltd. should be maintained.

the product

E. CONCLUSION

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

interim review of

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

ex 7307 93 19,

ex 7307 93 11,

inter alia,

Article 2

This Regulation shall enter into force on the day following 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, 16 March 2005.

For the Council
The President

J. ASSELBORN