Council Regulation (EC) No 1372/2005 of 19 August 2005 terminating the anti-dumping proceeding concerning imports of styrene-butadiene-styrene thermoplastic rubber originating in the Republic of Korea and Russia, terminating the interim review of the anti-dumping measures applicable to imports of styrene-butadiene-styrene thermoplastic rubber originating in Taiwan and repealing these measures
Date: 2005-08-19
Institutions: Council of the European Union
Subjects: Russia, South Korea, Taiwan, anti-dumping legislation, anti-dumping measure, import, originating product, synthetic rubber

27.8.2005

EN

Official Journal of the European Union

L 223/27

COUNCIL REGULATION (EC) No 1372/2005

of 19 August 2005

terminating the anti-dumping proceeding concerning imports of styrene-butadiene-styrene
thermoplastic rubber originating in the Republic of Korea and Russia, terminating the interim
the anti-dumping measures applicable to imports of styrene-butadiene-styrene
review of
thermoplastic rubber originating in Taiwan and repealing these measures

THE COUNCIL OF THE EUROPEAN UNION,

— Lee Chang Yung Chemical Industry Corp., Taipei

5,3 %

Having regard to the Treaty establishing the European
Community,

— Chi Mei Corp., Tainan 9,1 %

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 Article 9 thereof,

— Non cooperating exporting producers 20,0 %

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

2.

Present investigations

Whereas:

A.

PROCEDURE

1. Measures in force

(1)

In September 2000, by Regulations (EC) No 1994/
2000 (2) and No 1993/2000 (3), the Council
imposed
definitive countervailing duties ranging from 1 % to
8,2 % and definitive anti-dumping duties on imports of
styrene-butadiene-styrene thermoplastic rubber (‘SBS’)
originating in Taiwan.

(2) The level of definitive anti-dumping duties established for
the exporting producers in Taiwan, expressed as a
percentage of the CIF frontier value, was as follows:

(3) On 28 May 2004, pursuant to Article 5 of the basic
the Commission announced by a notice
Regulation,
(‘notice of initiation’) published in the Official Journal of
the European Union (4), the initiation of an anti-dumping
proceeding with regard to imports into the Community
of SBS originating in the Republic of Korea (‘Korea’) and
Russia.

(4) On the same day, the Commission announced by a
notice published in the Official Journal of the European
Union (5), the initiation of an interim review, pursuant to
Article 11(3) of the basic Regulation, of the definitive
anti-dumping duties imposed by Council Regulation (EC)
No 1993/2000 on imports of SBS originating in Taiwan.

(5) The anti-dumping investigation was initiated following a
complaint lodged on 13 April 2004 by the European
Chemical Industry Council (‘CEFIC’ or ‘the complainant’)
the
on behalf of producers representing 100 % of
Community production of SBS. The complaint contained
evidence of dumping of the said product and of material
injury resulting there from, which was considered
sufficient to justify the initiation of a proceeding.

(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 238, 22.9.2000, p. 8.
(3) OJ L 238, 22.9.2000, p. 4.

(4) OJ C 144, 28.5.2004, p. 5.
(5) OJ C 144, 28.5.2004, p. 9.

L 223/28

EN

Official Journal of the European Union

27.8.2005

(6) The interim review was based on a request lodged by
CEFIC and contained evidence that dumping and injury
had recurred and that the existing measures were no
longer sufficient to counteract the injurious dumping.

(a) Community industry producers

— Dynasol Elastomeros S.A., Madrid, Spain

3.

Parties concerned by the proceeding

— Kraton Polymers International Ltd., London,

United Kingdom

(7) The Commission's services officially advised the export-
ing producers in Korea, Russia and Taiwan, importers/
traders and their associations, suppliers and users known
to be concerned, the representatives of the exporting
countries concerned, and the complainant Community
producers of the initiation of the proceedings. 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 notices of initiation.

(8)

(9)

In view of the large number of importers of SBS into the
Community listed in the complaint and the request, the
notices of initiation envisaged the use of sampling for
importers for the determination of injury, in accordance
with Article 17 of the basic Regulation.

In order to enable the Commission's services to decide
whether sampling would be necessary and, if so, to select
a sample, all importers were asked to make themselves
known to the Commission and to provide, as specified in
the notices of
initiation, basic information on their
activities related to SBS during the sampling period
(1 April 2003 to 31 March 2004). After examination of
the information submitted by the importers and due to
the small number of replies to the sampling questions, it
was decided that sampling was not necessary.

(10) Questionnaires were sent to all parties known to be
that made
concerned and to all other companies
themselves known within the deadlines set out in the
notices of initiation.

(11) Replies were received from one Korean exporting
producer, one Russian producer, together with its two
related Russian companies, four Taiwanese producers,
four Community producers and four unrelated impor-
ters. No replies were received from users.

(12) The Commission's services sought and verified all the
information deemed necessary for the purpose of a
determination of dumping, resulting injury and Com-
munity interest. In accordance with Article 16(1) of the
basic Regulation, verification visits were carried out at
the premises of the following companies:

— Polimeri Europa S.p.A., Milan, Italy

— SA Petrofina NV Brussels, Belgium (formerly

Atofina Elastomers N.V.)

(b)

Exporting producer in Korea

— Korea Kumho Petrochemicals Co., Ltd., Seoul

(c)

Exporting producer in Russia

— SIBUR group:

— Public Joint Stock Company ‘Sibirsko-
Uralskaya Neftegazohimicheskaya Com-
paniya’ (‘SIBUR’), Moscow

— Gazexport, Limited Liability Company,

Moscow

— Joint Stock Company Voronezhsyntez-

kauchuk, Voronezh

(13) The

investigation showed that only one Russian
company,
JSC Voronezhsyntezkauchuk, produced the
product concerned, while JSC SIBUR was mainly
responsible for the domestic sales and the delivery of
raw materials. Gazexport was responsible for the export
sales during most of the investigation period. Thus, for
the purposes of
the three related
this investigation,
Russian companies will be considered as one company,
namely the ‘SIBUR group’.

(d)

Exporting producers in Taiwan

— Chi Mei Corp., Tainan

— Lee Chang Yung Chemical

Industry Corp.,

Taipei

27.8.2005

EN

Official Journal of the European Union

L 223/29

(e) Unrelated importers

6.

Investigation period

— Guzman Cauchos S.L., Valencia, Spain

— Monumenta Import Export GmbH, Troisdorf,

Germany

(18) The investigation of dumping and injury covered the
period from 1 April 2003 to 31 March 2004
(‘investigation period’ or ‘IP’). The examination of trends
in the context of the injury analysis covered the period
from 1 January 2000 to the end of the IP (‘period
considered’).

— Tecnopolimeri S.p.A., Seregno, Italy

B.

PRODUCT CONCERNED AND LIKE PRODUCT

4.

Provisional measures

1.

Product concerned

(14) Given the need to further examine certain aspects of
injury, causality and Community interest, in particular in
view of the interrelation with the parallel interim review
of the anti-dumping duties applicable to imports of SBS
originating in Taiwan, no provisional anti-dumping
measures were imposed on imports of SBS originating
in Korea and Russia. All parties were nevertheless
informed of the preliminary findings of the investigation
and were granted a period within which they could
submit representations subsequent to the disclosure and
the oral and written comments submitted by the parties
were taken into consideration.

5.

Subsequent procedure

(15) The Commission's services continued to seek and verify
all information deemed necessary for definitive findings,
in particular with regard to imports of SBS from Taiwan.

(16) Subsequently, all parties were informed about

the
essential facts and considerations on the basis of which
it was intended to recommend:

— the termination of the proceeding against imports
of SBS originating in Korea and Russia; and

(19) The product concerned is

styrene-butadiene-styrene
thermoplastic rubber, currently classifiable within CN
codes
and
ex 4002 99 90.

ex 4002 19 00,

ex 4002 99 10

(20) SBS is a triblock copolymer mainly made from monomer
styrene and butadiene. It can be either dry or, with the
addition of oil at the manufacturing stage, oil-extended.
Furthermore, it can be produced in different types which
can be identified through different specifications, such as
the ratio of styrene to butadiene, the oil content or the
chemical symmetry. Although the potential range of
types of SBS is considerable, they share the same basic
physical characteristics and no clear dividing lines exist
between the various types. Moreover, all types of SBS are
used for
the same purposes, such as the thermo-
modification of bitumen for road asphalt and roofing
membranes, for technical and footwear compounding,
plastic modification, and adhesives. Therefore, they are
considered as one single product for the purpose of this
investigation.

(21) During the verification visits it was found that one
company exported styrene‑isoprene-styrene block poly-
mer (‘SIS’) to the Community during the IP.
It was
considered that this product cannot be regarded as the
product concerned. Indeed, SIS has a different physical
composition to SBS as the monomer in the mid-block of
the polymer is isoprene instead of butadiene. It therefore
did not share the same physical characteristics and is
consequently not covered by the present proceeding.

— the repeal of Regulation (EC) No 1993/2000
imposing definitive anti-dumping duties on imports
of SBS originating in Taiwan.

2.

Like product

(17) They were also granted a period within which they could
make representations subsequent to this disclosure. The
oral and written comments submitted by the parties were
considered, and where appropriate, the findings have
been modified accordingly.

(22) The product concerned and the SBS manufactured and
sold domestically in Korea, Russia and Taiwan, as well as
the SBS manufactured and sold in the Community by the
Community industry were found to have the same basic
physical and chemical characteristics and the same basic
uses. Therefore, these products are considered to be alike
the basic
within the meaning of Article 1(4) of
Regulation.

L 223/30

EN

Official Journal of the European Union

27.8.2005

C.

DUMPING

(27)

1. General methodology

(23) The general methodology set out below was applied to
all exporting producers in Korea, Russia and Taiwan. The
subsequent presentation of findings on dumping for the
issues
countries concerned therefore only describes
specific to each exporting country.

2. Normal value

(24)

its

services

In accordance with Article 2(2) of the basic Regulation,
first examined for each
the Commission's
cooperating exporting producer whether
total
domestic sales of SBS were representative, i.e. whether
the total volume of such sales represented at least 5 % of
the total export sales volume of the producer to the
Community. The Commission's services subsequently
identified those types of SBS sold on the domestic market
by the companies having overall representative domestic
sales and that were identical to or directly comparable
with the types sold for export to the Community.

(25) For each type sold by the exporting producers on their
domestic markets and found to be directly comparable
with the types of SBS sold for export to the Community,
it was established whether domestic sales were suffi-
ciently representative for the purposes of Article 2(2) of
the basic Regulation. Domestic sales of a particular type
of SBS 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 SBS exported to the Community.

(26) The Commission's

services

subsequently examined
whether
each type of SBS sold domestically in
representative quantities could be considered as being
sold in the ordinary course of trade in accordance with
Article 2(4) of the basic Regulation, by establishing the
proportion of profitable sales to independent customers
of the SBS type in question. In cases where the sales
volume of the relevant SBS 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
type made during the IP,
irrespective of whether these sales were profitable or
not. In cases where the volume of profitable sales of the
SBS 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.

that

In cases where the volume of profitable sales of any
product type 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 establish-
ment of the normal value. Whenever domestic prices of a
particular product type sold by an exporting producer
could not be used in order to establish normal value, it
was considered that constructed value of that particular
type of SBS formed an appropriate basis to establish
normal value.

(28) Consequently,

in accordance with Article 2(3) of the
basic Regulation, normal value was constructed by
adding to the manufacturing 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 each of the exporting producers
concerned on the domestic market constituted reliable
data.

(29) Actual domestic SG&A expenses were considered reliable
when the total domestic sales volume of the company
concerned could be regarded as representative when
to the
compared to the volume of export
Community. The domestic profit margin was determined
on the basis of domestic sales of those types which were
sold in the ordinary course of trade. For this purpose, the
methodology as set out above was applied.

sales

3.

Export price

(30)

In all cases where the product concerned was exported
directly to independent customers in the Community, the
export price was established in accordance with Article 2
(8) of the basic Regulation, i.e. on the basis of export
prices actually paid or payable.

4. Comparison

(31) The normal value and export prices were compared on
an ex-works basis. For the purpose of ensuring a fair
comparison between the normal value and the export
price, due allowance in the form of adjustments was
made for differences affecting price comparability in
accordance with Article 2(10) of the basic Regulation.
Appropriate adjustments were granted in all cases where
reasonable, accurate and
they were
supported by verified evidence.

found to be

5. Dumping margin

(32) According to Article 2(11) of the basic Regulation, for
each exporting producer the weighted average normal
value was compared with the weighted average export
price.

27.8.2005

EN

Official Journal of the European Union

L 223/31

6. Korea

(33) A questionnaire reply was received from one Korean
exporting producer. The investigation showed that the
the Korean company were
total domestic sales of
representative. Furthermore,
the total domestic sales
volume of each type of SBS sold by the company
represented 5 % or more of the total sales volume of
comparable types of SBS exported to the Community
and could therefore be considered as representative.

6.1. Normal value

(34) To determine the normal value, domestic prices could be
used for two product types. For three product types,
normal value was based on profitable sales only. For five
product types, less than 10 % of the domestic sales were
profitable during the IP. Therefore, in these cases, the
Commission constructed the normal value in accordance
with Article 2(3) of the basic Regulation on the basis of
the exporting producer's own cost of manufacturing plus
a reasonable amount for selling, general and adminis-
trative (‘SG&A’) costs and for profit. In this regard, SG&A
costs were based on the SG&A costs of the company as
its domestic sales of the like product were representative
as defined in Article 2(2) of the basic Regulation. For the
profit margin, in accordance with the first sentence of
Article 2(6) of
the profit on
the basic Regulation,
domestic sales in the ordinary course of trade was used.

affected prices. However, they were unable to properly
quantify the alleged discounts and to demonstrate that
they were directly linked to the sales under consideration.
Therefore, in accordance with Article 2(10) of the basic
Regulation, the claim was rejected.

6.4. Dumping margin

(38) The dumping margin established,

a
percentage of the CIF import price at the Community
frontier, duty unpaid is the following:

expressed as

— Korea Kumho Petrochemicals Co., Ltd., Seoul:

0,95 %

(39) Since the dumping margin for Korea Kumho Petrochem-
icals is de minimis,
less than 2 %, the proceeding
against Korea should be terminated without the imposi-
tion of measures in accordance with Article 9(3) of the
basic Regulation.

i.e.

7.

Russia

(40) Questionnaire replies were received from three related

companies and were considered together.

6.2. Export price

7.1. Normal value

(35) As exports of the product concerned were made directly
to independent customers in the Community, the export
prices were established on the basis of the prices paid or
payable for the product concerned when sold for export
to the Community in accordance with Article 2(8) of the
basic Regulation.

6.3. Comparison

(41) The investigation showed that all Russian domestic sales
were representative and that only one specific product
type was sold to the EU. It was found that there were
sufficient domestic sales of the relevant type of SBS and
that these sales could be considered as representative.
Moreover, the product type exported to the EC was found
to be sold in the ordinary course of trade. Therefore,
actual domestic prices could be used to determine the
normal value.

(36) Adjustments were made

in respect of

transport,
insurance, handling and credit costs where applicable
and justified. In accordance with Article 2(10)(b) of the
basic Regulation, the company claimed and was granted
a duty drawback adjustment on the normal value on the
grounds that import charges were borne by the like
product when consumed in the exporting country but
were refunded when SBS was sold for export.

(37) The company also claimed an adjustment for quantity
discounts. During the verification visit, the company had
the opportunity to demonstrate that quantity discounts

(42) One of the companies of the SIBUR group produced the
main raw materials, butadiene and styrene, on its own
and only purchased these materials in the event of a
shortage. As conflicting information about the quantity
of certain raw materials purchased in relation to the
quantity of raw materials produced in the IP were
reported, in accordance with the provisions of Article 2
(5) and Article 18 of
the
Commission's services used facts available, in this case
the highest quantity of purchased raw material reported
by the companies, to establish the cost of raw materials
for
the cost of production.
However, the total revised cost of production did not
alter the finding that domestic prices were the appro-
priate basis for establishing the normal value.

the basic Regulation,

the determination of

L 223/32

EN

Official Journal of the European Union

27.8.2005

(43) Considering the division of tasks between the companies
concerned, the cost of production had to be determined
by summing up the relevant costs of the producing
company, JSC Voronezhsyntezkauchuk, with the relevant
costs of JSC SIBUR.

(44) After the companies were informed of the decision not
to impose provisional measures, they claimed a correc-
tion of the established normal value on the grounds that
they had reported their domestic sales prices including
Russian VAT by mistake. During the verification visit, the
domestic sales prices for one company were verified and
found to be reported net, free of taxes. With regard to the
second company selling on the domestic market,
domestic sales prices could not be properly verified
during the verification visit as the company was unable
to list completely their transactions of domestic sales at
that
the complete domestic prices
reported later on were verified by randomly chosen
invoices. Based on these invoices,
the Commission's
services came to the conclusion that the company had
reported their relevant domestic sales prices net, free of
taxes. For the remaining domestic sales, the Commis-
sion's services were unable to carry out any further
verification with regard to VAT in due time. In the light
of the foregoing, the claim was rejected.

time. However,

7.2. Export price

(45) As exports of the product concerned were made directly
to independent customers in the Community, the export
price was established on the basis of the prices paid or
payable for the product concerned when sold for export
to the Community in accordance with Article 2(8) of the
basic Regulation.

7.3. Comparison

(46) As all sales were made ex-works, adjustments were only
made in respect of handling and credit costs where
applicable and justified.

(47) After the companies were informed of the decision not
they claimed an
to impose provisional measures,
adjustment
for differences in physical characteristics
according to Article 2(10)(a) of the basic Regulation
stating that the SBS produced by them was of a lower
quality compared to the product manufactured by the
Community industry. During the verification visit, it was
verified and confirmed that the SBS produced and sold
on the Russian domestic market was the same as the SBS
sold to the EC. Therefore, the claim was rejected under
Article 2(10)(a) of the basic Regulation.

7.4. Dumping margins

(48) The dumping margin established,

a
percentage of the CIF import price at the Community
frontier, duty unpaid is the following:

expressed as

— SIBUR group, Russia: 31,7 %

8.

Taiwan

(49) Questionnaire replies were received from four producers
of SBS in Taiwan. The replies showed that only those two
companies subject to individual dumping duties exported
the product concerned to the EC during the IP.

8.1. Normal value

(50) For one company,

the investigation showed that all
domestic sales were representative and that only one
specific product type was sold to the EU. It was found
that there were sufficient domestic sales of the relevant
type of SBS and that these sales could be considered as
representative. Moreover, the product type exported to
the EC was found to be sold in the ordinary course of
trade. Therefore, actual domestic prices could be used to
determine the normal value.

(51) For the other cooperating company, the investigation
showed that total domestic sales were representative.
Furthermore, the total domestic sales volume of eight
types of SBS sold by the company represented 5 % or
more of the total sales volume of comparable types of
SBS exported to the Community and could therefore be
considered as representative. However, one type of SBS
sold to the EU was not sold on the domestic market.

(52) To determine the normal value, domestic prices could be
used for eight product types. For the product type for
which no domestic sales could be found, the Commis-
sion's services constructed the normal value in accor-
dance with Article 2(3) of the basic Regulation on the
basis of the exporting producer's own cost of manu-
facturing plus a reasonable amount for selling, general
and administrative (‘SG&A’) costs and for profit. In this
regard, SG&A costs were based on the SG&A costs of this
company for those domestic sales of the like product
which were representative as defined in Article 2(2) of
the basic Regulation. For the profit margin, in accordance
with the Article 2(6) of the basic Regulation, the profit
on domestic sales in the ordinary course of trade was
used.

27.8.2005

EN

Official Journal of the European Union

L 223/33

8.2. Export price

(53) As exports of the product concerned were made directly
to independent customers in the Community, the export
prices were established on the basis of the prices paid or
payable for the product concerned when sold for export
to the Community in accordance with Article 2(8) of the
basic Regulation.

8.3. Comparison

alleged physical differences had a consistent impact on
the price or on the use of the product concerned in
comparison to the relevant type of SBS of a higher
quality sold on the domestic market. Therefore, the claim
was rejected.

8.4. Dumping margins

(59) The dumping margins established, expressed as a
percentage of the CIF import price at the Community
frontier, duty unpaid are the following:

— Lee Chang Yung Chemical Industry Corp., Taipei: –

1,8 %

(54) For one company, adjustments were made in respect of
insurance, handling, credit and commission

transport,
where applicable and justified.

— Chi Mei Corp., Tainan: 16,2 %

(55) This company then claimed an adjustment for after-sales
costs pursuant to Article 2(10)(h) of the basic Regulation,
stating that a special after-sales service was only offered
for sales on the domestic market. This company was
given the opportunity during the verification visit to
substantiate this claim, but could not demonstrate that
any after-sales services were provided. The claim was
therefore rejected in accordance with Article 2(10) of the
basic Regulation.

(56) Furthermore, this company claimed an adjustment for
currency conversions in accordance with Article 2(10)(j)
of the basic Regulation. The claim was based on the fact
that the company kept the sales amount for some export
sales in the invoiced currency and only exchanged it
when the rate was favourable. However, since the
exchange rate used in the accounting system was equal
to the daily rate of
the individual export sale, and
therefore reflected the sales amount in the domestic
currency, no adjustment for speculative currency gains
could be granted. This company did not demonstrate that
the conditions of Article 2(10)(j) of the basic Regulation
were fulfilled and therefore the claim was rejected.

(57) For

the other company, adjustments were made in
respect of
loading,
packing and credit costs where applicable and justified.

insurance, handling,

transport,

D.

INJURY

1. Definition of the Community industry

(60) The following Community producers supported the

complaint:

— Dynasol Elastomeros S.A., Madrid, Spain;

— Kraton Polymers International Ltd., London, United

Kingdom;

— Polimeri Europa S.p.A., Milan, Italy;

— SA Petrofina NV Brussels, Belgium (formerly

Atofina Elastomers N.V.);

(61) As these four complainant cooperating Community
producers represent 100 % of the Community produc-
tion of the product concerned, it is considered that the
complainant producers
the Community
industry within the meaning of Articles 4(1) and 5(4)
of the basic Regulation.

constitute

2. Community consumption

(58) That company also claimed an adjustment for differences
in physical characteristics according to Article 2(10)(a) of
the basic Regulation, on the grounds that some sales to
the EU of a lower quality type of the product concerned
had no equivalent on the domestic market. During the
verification visit, that company had the opportunity to
demonstrate that
the alleged differences in physical
characteristics affected prices and price comparability.
the
However,

they were unable to demonstrate that

(62) Community consumption was established on the basis of
the sales volumes of the Community industry on the
Community market, plus all imports from Korea, Russia
and Taiwan, plus an estimated proportion of imports of
SBS from other third countries under the relevant CN
codes, as SBS only represents a part of these customs
codes. This proportion was based on the methodology
followed in the complaint in the absence of any other
source of information. The imports from Korea, Russia

L 223/34

EN

Official Journal of the European Union

27.8.2005

and Taiwan were determined on the basis of the figures
submitted by the cooperating exporting producers in
these three countries, since it was established during the
investigation that they represented 100 % of the exports
of the product concerned from the countries concerned
to the Community.

(63) Between 2000 and the IP Community consumption
decreased from 193 756 tonnes to 180 195 tonnes, i.e.
by 7 %. However, the Community consumption reached
a peak in 2002 and then sharply decreased by 9 %.

(67)

not negligible in the sense of Article 5(7) of the basic
Regulation, the cumulated market share attaining 5,3 %.

to determine

appropriateness of

the
in view of

a
In order
cumulative assessment
the conditions of
competition between imported products from the two
companies and between imported products and the like
Community product, the Commission's services analysed
the ‘exporters’ market behaviour in terms of trends of
export volumes and prices.

2000

2001

2002

2003

IP

Community con-
sumption
(tonnes)

193 756 191 827 198 741 188 562

180 195

Index

100

99

103

97

93

3.

Imports of SBS from the countries concerned

3.1. Cumulation

(64) The Commission considered whether

the effects of
imports of SBS originating in Korea, Russia and Taiwan
should be assessed cumulatively in accordance with
Article 3(4) of the basic Regulation.

simultaneously subject

(65) This Article provides that the effects of imports from two
to anti-
or more countries
dumping investigations are to be assessed cumulatively
only if it is determined that (a) the margin of dumping
established in relation to the imports from each country
is more than de minimis as defined in Article 9(3) of the
basic Regulation and that the volume of imports of each
country is not negligible and (b) a cumulative assessment
of the effects of the imports is appropriate in the light of
the conditions of competition between imported pro-
ducts and the conditions of competition between the
imported products and the like Community product.

(66) With regard to Korea and one Taiwanese exporting
producer, the investigation has shown that either de
in
minimis or no dumping was
accordance with Article 3(4) of the basic Regulation,
those imports concerned could not be cumulatively
assessed. On the contrary, as
the
dumping margins established for Russia and the other
cooperating Taiwanese exporter are well above de minimis
level, and the volume of imports from said countries is

found. Therefore,

indicated above,

(68) Similar trends in export volumes were identified for
Taiwan and Russia, with an increase of 77 % for Russia
and 151 % for Taiwan between 2001, the year following
the imposition of measures on Taiwan, and the IP. Given
the above, it was concluded that there was no significant
difference in the market behaviour of the Russian and
Taiwanese exporters found to dump in terms of trends of
export volumes to the Community.

(69) Similar market behaviour on the part of Russian and
Taiwanese producers in terms of export prices was also
found. In fact, these countries decreased their respective
average unit selling prices of SBS by 18 % and 6 % from
2001, after measures were imposed on Taiwanese
imports and import volumes from Russia started to
become significant, until the end of the IP. In addition, a
similar level of undercutting was determined for imports
from both countries.

(70) The investigation also showed that imports from the
countries concerned into the Community used the same
sales channels, as in the vast majority, said imports are
traded through distributors, rather than sold to final
customers.

(71) Furthermore, as explained above, it was found that the
product concerned imported from the countries con-
cerned and produced by the Community industry share
the same basic physical and chemical characteristics, and
are to be considered alike in terms of interchangeability
and substitutability. Thus, it was established that exports
of the product concerned from the countries concerned
compete with each other and with SBS manufactured by
the Community industry.

(72) On the basis of the above,

it was concluded that all
conditions justifying the cumulation of imports of SBS
originating in Russia and Taiwan were met.

27.8.2005

EN

Official Journal of the European Union

L 223/35

3.2. Import volume and market share

(73) Dumped imports of SBS from Russia and Taiwan
increased sharply from 2 834 tonnes in 2000 to 9 523
tonnes during the IP. The corresponding market share
increased from 1,5 % in 2000 to 5,3 % during the IP.

2000

2001

2002

2003

IP

Imports (tonnes)

2 834

4 979

4 966

8 919

9 523

Index

100

176

175

315

336

difference justified an estimated adjustment of 5 %, which
was added to the CIF Community frontier price of the
cooperating exporting producers.

(77) During the IP, the weighted average undercutting margin
was around 15 % for Russia and for the Taiwanese
producer found to dump.

(78) When assessing the above figures, it should be borne in
mind that — despite the quality adjustment made — SBS
from various sources is largely interchangeable and,
consequently, price is an important criteria for selecting a
source of supply. This reinforces the effect of any price
undercutting found.

4.

Situation of the Community industry

Market share

1,5 %

2,6 %

2,5 %

4,7 %

5,3 %

4.1. Production

3.3. Prices

(74) The weighted average price of dumped imports of SBS
originating in Russia and Taiwan declined by 12 %
between 2000 and the IP.

2000

2001

2002

2003

IP

Weighted average
CIF Community
frontier price
(EUR/tonne)

1 145

1 179

1 086

1 023

1 004

(79) Production in volume by the Community industry
decreased by 4 % during the period considered. After
an increase in 2002, the production decreased in 2003
and during the IP.

2000

2001

2002

2003

IP

Production
(tonnes)

259 698 253 113 271 964 253 679

249 566

Index

100

103

95

89

88

Index

100

97

105

98

96

3.4. Undercutting

(75) For

the determination of price undercutting the
Commission analysed data referring to the IP. The
relevant sales prices of the Community industry were
those to independent customers, adjusted where neces-
sary to an ex-works level, i.e. excluding freight costs in
the Community and after deduction of discounts and
rebates. Prices for the different types of SBS defined in
the questionnaires were compared with the sales prices
charged by the exporters net of discounts and adjusted
where necessary to CIF Community frontier with an
appropriate adjustment for the customs clearance costs
and post-importation costs.

4.2. Capacity of production and capacity utilisation rates

(80) The production capacity was established on the basis of
the nominal capacity of the production units owned by
the Community industry, taking into account technical
interruptions in production as well as the fact that in
certain cases part of the capacity had been used for other
products manufactured with the same production lines.

(81) SBS production capacity remained stable during the
period considered. Indeed, after a slight increase in 2001
and 2002, it decreased in 2003 to the same level as in
2000 and remained at that level in the IP.

(76)

It was claimed by importers and the Russian producer
and also confirmed by the Community industry that the
quality of
the like product manufactured by the
Community industry is generally higher than that of
the product concerned imported from Russia. Based on
the evidence found, it was considered that this quality

(82) Capacity utilisation rates diminished by 4 percentage
points from 79 % to 75 %. As production capacity itself
remained stable, this decline in capacity utilisation is
merely due to the decrease in the production volumes of
the Community industry.

L 223/36

EN

Official Journal of the European Union

27.8.2005

2000

2001

2002

2003

IP

4.5. Sales and market share

Capacity of pro-
duction (tonnes)

329 574 337 524 338 014 329 173

330 774

Index

100

102

103

100

100

(85) SBS sales by the Community industry on the Community
market declined by 15 % from 2000 to the IP. As
Community consumption only decreased by 7 % during
the period considered, the sharp decrease in sales by the
Community industry resulted in a significant loss of
market share, which indeed passed from 89 % to 82 %.

Capacity utilisa-
tion

4.3. Stocks

79 %

75 %

80 %

77 %

75 %

2000

2001

2002

2003

IP

Sales in the EU
(tonnes)

172 080 166 680 161 486 155 050

146 907

(83) During the period considered stocks increased by 60 %.
The stock increase seems to have two reasons, one being
the decrease in sales and the other being a variety of new
types of SBS produced which needed more time to be
marketable.

Index

100

97

94

90

85

Market share

89 %

87 %

81 %

82 %

82 %

2000

2001

2002

2003

IP

Stocks (tonnes)

44 971

44 325

59 077

63 997

71 875

4.6. Prices

Index

100

99

131

142

160

4.4. Investments

(86) The Community industry's average unit selling price was
more or less at the same level during the IP compared to
2000, decreasing by only 1 %. Indeed the Community
industry's unit selling price first
increased by 6 %
between 2000 and 2001 and subsequently decreased by
7 % from 2001 to the IP.

(84)

In the period considered the Community industry
invested around EUR 60 million, mainly consisting of
plant and machinery (around 48 %) and research and
development projects (23 %). These investments were
necessary mainly to maintain production capacity at its
current level. After a sharp decrease in the years 2001
and 2002, investments increased again in 2003 and the
IP, but still remained below that of the year 2000. The
increase in 2003 and the IP was due to maintenance and
modernisation required for
and
introduction of new types of SBS, which was necessary
for
to remain
competitive. Furthermore, the fluctuation of investments
can be explained by the cyclical
lifespan of certain
machinery. Over
the period considered the annual
investments decreased overall by 11 %.

the Community industry in order

the development

2000

2001

2002

2003

IP

Weighted average
price (EUR/
tonne)

1 350

1 434

1 363

1 348

1 330

Index

100

106

101

100

99

2000

2001

2002

2003

IP

Investments

(EUR '000)

16 464

12 969

8 914

11 760

14 698

Index

100

79

54

71

89

4.7. Profitability and cash flow

(87) During the period considered the weighted average
profitability on net turnover of the Community industry
for its sales of the like product on the Community
market decreased from 2,2 % to 1,2 %. It first sharply
increased from 2,2 % in 2000 to 9,3 % in 2001 which
coincided with the imposition of anti-dumping and
countervailing measures on imports of SBS from Taiwan
and subsequently constantly decreased from 2001
onwards.

27.8.2005

EN

Official Journal of the European Union

L 223/37

2000

2001

2002

2003

IP

2000

2001

2002

2003

IP

Weighted average
profitability on
net turnover

2,2 %

9,3 %

8,9 %

1,5 %

1,2 %

Employees

627

642

596

614

581

(88) The cash flow generated was EUR –0,7 million during
the IP. The situation was difficult in 2000 mainly because
of the high level of investments. However the Commu-
nity industry could generate positive cash flow for the
years 2001, 2002 and 2003. However, the cash flow
situation deteriorated sharply from 2002 to the IP.

Index

100

102

95

98

93

Weighted average
salary (EUR '000/
year)

75

75

73

73

76

Index

100

100

97

97

101

2000

2001

2002

2003

IP

Cash flow (in
EUR '000)

–7 362

10 005

33 050

4 639

–714

4.11. Productivity

4.8. Return on net assets

(89) Return on net assets for the product concerned decreased
by 5 % during the period considered. After a first increase
to 0,3 % in 2001 and 2,8 % in 2002, it sharply decreased
to –8,5 % in 2003 and –11,2 % in the IP.

(92) Productivity of the Community industry increased by
4 % during the period considered. The slight fluctuations
over the period considered are directly linked to the
evolution of employment. This increase shows that the
Community producers not only adapted the number of
people employed in relation to the decrease in sales but
also managed to improve their efficiency.

2000

2001

2002

2003

IP

2000

2001

2002

2003

IP

Productivity
(tonnes/
employee)

414

394

456

413

430

Weighted return
on net assets

–6,2 %

0,3 %

2,8 %

–8,5 %

–11,2 %

Index

100

95

110

100

104

4.9. Ability to raise capital

4.12. Growth

(90) Three of the four Community producers belong to large
oil groups, whereas the fourth is 100 % owned by an
investment fund. As to the ability to raise capital, there
was no claim from the Community industry, or
indication, that the Community industry encountered
problems in raising capital for its activities.

(93) While Community consumption decreased by 6 %
between 2000 and the IP,
the
Community industry to unrelated customers decreased
by 15 %. Thus, sales by the Community industry went
down much more sharply than the demand during the
period considered. Consequently, the market share of the
Community industry fell by 8 percentage points.

the sales volume of

4.10. Employment and wages

4.13. Magnitude of the dumping margin

(91) Employment in the Community industry decreased by
7 % during the period considered. Wages remained stable
over the period considered: total wages slightly increased
by 1 %, which is considerably less than the European
inflation rates during that period.

(94) As regards the impact on the Community industry of the
magnitude of the actual margins of dumping, given the
volume and the prices of the dumped imports from
Russia and Taiwan this impact cannot be considered
negligible.

L 223/38

EN

Official Journal of the European Union

27.8.2005

4.14. Recovery from past dumping and subsidisation

(95)

It should be recalled that during part of the period
considered the Community industry was suffering from
dumped and subsidised imports from Taiwan. The
Community industry recovered to some extent after
the imposition of anti-dumping and countervailing
measures in 2000 on imports from Taiwan. However,
the situation of the Community industry deteriorated
again after 2002 when imports from Taiwan, Russia and
Korea increased significantly with prices undercutting the
Community prices.

5. Conclusion on injury

(96) The cumulated volumes of dumped imports from Russia
and Taiwan have increased, both in absolute terms and in
terms of market share, representing a cumulated market
share of 5,3 % in the IP. Moreover, the weighted average
price of dumped imports from Russia and Taiwan
decreased by 12 % over the period considered. This
decrease is reflected in the price undercutting found.

(97) Most of the Community industry injury indicators have
shown a negative evolution during the period considered,
which points to a situation of
injury. While total
Community consumption of SBS decreased by 7 %, the
volume of the Community industry's sales decreased by
15 %, with a corresponding loss in market share of 7
percentage points. Production volume decreased by 4 %;
production capacity stagnated and capacity utilisation
diminished by 4 percentage points. The average unit
selling price decreased by 1 % and profitability on net
turnover by 1,1 percentage point during the period
considered. Other profitability-related indicators such as
return on net assets also deteriorated during the period
considered. Employment decreased by 7 % whereas
productivity increased by 4 %. Finally, average salaries
increased by 1 %, less than the European inflation rates
during the period considered.

(98) Based on the above, it is considered that the Community
industry is in a difficult economic and financial situation
and has suffered material injury within the meaning of
Article 3(5) of the basic Regulation.

E.

CAUSATION

1.

Introduction

(99)

In accordance with Articles 3(6) and 3(7) of the basic
Regulation, it was examined whether the material injury
suffered by the Community industry had been caused by
dumped imports of the product concerned originating in
in accordance
the countries concerned. Furthermore,

with Article 3(7) of the basic Regulation, known factors
other than the dumped imports, which might have
injured the Community industry, were also examined to
ensure that any injury caused by those factors was not
wrongly attributed to the dumped imports.

2.

Effect of the dumped imports

(100) Dumped imports

countries

from the

concerned
increased by 3,8 % in market share during the period
considered while the price of those imports decreased by
12 % and undercut
the Community
industry by 15,3 % during the IP. The Community
industry managed to keep its sales prices largely stable
during the period considered, but this was at the expense
of sales volume and market share, which in turn had an
impact on its profitability.

the prices of

(101) However, while a first analysis of the aforementioned
data would suggest a significant impact of the dumped
imports on the situation of the Community industry, a
more in depth examination does not confirm this. First,
there is only a partial coincidence in time between the
deterioration of the situation of the Community industry
and the moment when the presence of the dumped
imports was most strongly felt. While the volume of
dumped imports slightly decreased between 2001 and
2002, and then massively increased in 2003 (+ 80 %),
the sales of the Community industry showed a gradual
decrease over the whole period considered. Moreover,
the loss of market share of the Community industry took
place only during the period 2000-2002, while the
dumped imports increased their market share over the
whole period considered. This increase was particularly
strong in 2003 and the IP, as the market share of the
dumped imports went from 2,5 % in 2002 to 4,7 % in
2003 and 5,3 % in the IP. During the same period, the
Community industry slightly increased its market share
from 81 % in 2002 to 82 % in 2003 and the IP.
Furthermore it
the Community
is also noted that
industry reached its highest profitability in 2001 and
2002, at the time when its loss of market share took
place. Profitability went only down thereafter. The
Community industry's
remained stable
throughout the period. It is acknowledged that these
prices were somewhat depressed from 2003 onwards as
the Community industry could not pass on some cost
increases. However, the impossibility to pass on these
cost increases cannot or only to a very limited extent be
attributed to the dumped imports, in particular since it
should be noted that non-dumped imports showed a
higher undercutting than the dumped imports. More-
over, the market share of the dumped imports remained
always below 5,3 %, while the non-dumped imports had

sales prices

27.8.2005

EN

Official Journal of the European Union

L 223/39

a market share of around 12 %. All this suggests that any
price pressure from imports results mostly from the
non-dumped imports.

which represent about 40 % of the cost of production,
are quoted on international commodities markets in
USD.

(102) Given the above, it was found that the dumped imports
may have exerted a certain pressure on the Community
industry's prices and had some negative impact on the
situation of the Community industry. However, in the
absence of a clearer coincidence in time between the
development of volumes, market share and prices of the
dumped imports on the one hand, and of
the
Community industry on the other,
it was difficult to
establish the impact of the dumped imports on the
injurious situation of the Community industry. There-
fore, it could not be concluded that the dumped imports
had played a determining role in the injurious situation
of the Community industry.

3.

Effects of other factors

3.1. Development of consumption

(103) The consumption of SBS in the Community decreased
by 7 % during the period considered. This may have
partially affected the situation in the Community
industry, as the production of SBS is a capital intensive
activity for which the volume of sales has a direct
influence on profitability.

(104) However, the decrease in consumption can only be
considered as one of a number of causes of the injurious
situation of the Community industry as it was shown
that imports from Korea, Russia and Taiwan increased in
the
the period considered, thus taking over part of
Community industry's market share.

3.2. Currency fluctuations

also examined,

the majority of

(105) Currency fluctuations between the Euro and the USD
import
as
were
transactions from the countries concerned into the EC
are negotiated in USD. The Euro has appreciated in value
vis-à-vis the USD as from mid 2002, and significantly
during the IP, thus favouring exports into the Euro area
for that period. In the light of this, one exporter and an
in a ‘dollar oriented’
interested party claimed that
business, the depreciation of this currency in compar-
ison to the Euro must have substantially contributed to
the injury suffered by the Community industry and
should therefore be taken into account.

(106) However, it should be noted that the revaluation of the
Euro at the same time reduced the injury suffered by the
Community industry as the prices for raw materials,

(107) Moreover, exports of Community producers to unrelated
parties increased during the period considered, whereas
imports of the product concerned from the United States
the
into the Community decreased,
appreciation of
the Euro vs. USD is not in itself a
determining factor for the loss in market share of the
Community producers on the EC market.

showing that

(108) In conclusion, although prima facie it cannot be excluded
that the appreciation of the Euro vis-à-vis the USD might
have favoured the imports of SBS from the countries
concerned, currency fluctuations also counterbalanced
the injury suffered by the Community industry. More-
over, this appreciation neither favoured the imports of
countries
other dollar driven countries
concerned nor prevented the Community producers
from increasing their exports outside the Community. It
was therefore not considered that currency fluctuations
had a material effect on the injury suffered by the
Community producers. More importantly,
the injury
analysis is concerned with the prices and quantities of
the dumped imports but certainly not with the question
as to why the dumped imports were made at any given
price level. Thus, it seems that the effect of exchange rate
fluctuations on the prices of dumped imports can by
definition not normally be another factor of injury.

than the

3.3. Non-dumped imports

(109) The effects of non-dumped imports from Korea and
Taiwan on the situation of the Community industry
were assessed. In order to respect the confidentiality of
the information provided by individual companies, the
data are presented on a cumulated basis.

(110) The non-dumped imports from Korea and Taiwan
showed an identical trend. On a cumulated basis, they
increased by 56 % in terms of volume and 5,2
percentage points in terms of market share during the
period considered, reaching a market share of 12,8 % in
the IP. The volume of those non-dumped imports thus
represented 2,4 times the volume of dumped imports
during the IP. Moreover, the undercutting margin that
could be calculated for non-dumped Korean and
Taiwanese imports was higher (17,4 %) than for dumped
imports (15,3 %). This substantial undercutting together
with the significant volumes of non‑dumped imports
strongly contributed to the pressure on prices observed
on the EC market.

L 223/40

EN

Official Journal of the European Union

27.8.2005

(111) On this basis, it was concluded that the volume and price
effect of
the non-dumped imports from Korea and
Taiwan were such that they can be considered to have
substantially contributed to the injury suffered by the
Community industry, and that the dumped imports from
Russia and Taiwan played a less important role than the
non-dumped imports.

3.4. Imports from other third countries

(112) Imports from all other third countries had a market
share of 0,4 % in the Community during the IP and it
was concluded that
impact on the injurious
situation suffered by the Community industry was not
significant.

their

3.5. Costs of raw materials

(113) It was noted that

the costs of raw materials have
increased during the period considered. This contributed
to the declining profitability of the Community industry.
However, the Community industry would normally seek
to pass on those cost increases to their customers. Due to
the existence of large price pressure exerted by the non-
dumped imports and probably to a much lesser extent by
the dumped imports, this was not possible. Moreover,
the Korean and Taiwanese exporting producers also
faced an increase in their raw material costs, of a similar
level to the Community producers. It was therefore not
the increase of raw material costs in the Community as
such but rather the coincidence between the pressure on
price exerted by imports and the increase of the costs
which had a negative effect on the profitability of the
Community industry.

(114) Given the above, it was concluded that the variations in
the costs of raw materials in the Community were not, as
such, a factor which caused injury to the Community
industry.

4. Conclusion on causation

(116) It was also found that, to the extent that a coincidence in
time existed between, on the one hand, the increase of
dumped imports from Russia and Taiwan, in terms of
volumes and market share, and, on the other hand, the
deterioration of
the Community
industry, which materialised in a loss in market share
and a decrease in profitability, such a coincidence in time
also existed for non-dumped imports, which had a
steeper increase in volume than the dumped imports
during the period considered.

situation of

the

(117) Moreover, the non-dumped imports from Korea and
Taiwan had during the IP a significantly higher volume
than the dumped imports,
leading to a significantly
higher market share (12,8 % vs. 5,3 %). In addition, both
the dumped and the non-dumped imports undercut the
Community prices, with non-dumped imports showing
even higher levels of undercutting. The Community
industry therefore faced more intense competition, at fair
from imports from non‑dumping producers/
prices,
countries. The non-dumped imports were thus a
prevailing factor
the
in the injurious
Community industry.

situation of

(118) It was also found that the decrease in consumption in the
EC contributed to the injury suffered by the Community
industry.

(119) The Community industry contested these conclusions,
arguing that the impact of other factors was not such as
to break the causal link between the dumped imports
from Russia and Taiwan and the injury suffered by the
Community industry. However, as they did not present
any arguments which could invalidate the appreciation
and conclusions made under recitals (100) to (102),
(103), (109) to (111) and (115) to (118), it was considered
that the arguments put forward were not sufficient to
conclude differently.

(115) The data suggest that the dumped imports had exerted a
certain price pressure on the Community industry's
prices and had contributed to its injurious situation.
However, a more detailed analysis, in particular based on
the development of trends over the period considered
did not allow a causal link to be established as there was
no clear coincidence in time between the deterioration of
the situation of the Community industry and the effects
of the dumped imports.

(120) In conclusion, although the dumped imports may have
contributed to the injury, it could not be established that,
taken in isolation, they have caused material
injury.
Indeed, other factors were examined pursuant to Article
3(7) of the basic Regulation and the injury could be
significantly attributed to the effects of non-dumped
prices and contraction in demand.

27.8.2005

EN

Official Journal of the European Union

L 223/41

F.

LASTING NATURE OF THE CHANGED

G.

CONCLUSION

CIRCUMSTANCES

(121) Within the framework of the interim review concerning
Taiwan,
it was also examined whether the changed
circumstances with respect to the original investigation
regarding dumping could reasonably be considered to be
of a lasting nature in accordance with Article 11(3) of
the basic Regulation.

(122) The likely development of domestic prices on the
Taiwanese market and of export prices of SBS from
Taiwan was examined. In this respect, it was found that
Taiwan had a substantial domestic market
the
product concerned, and that domestic prices had
increased in comparison with the original investigation,
in an even higher proportion than the costs of raw
materials.

for

(123) With regard to exports of SBS from Taiwan to other
it should first be noted that the EU market
markets,
represents a small proportion of total exports. Indeed,
the investigation showed that the cooperating compa-
nies sold 75 % of their production of SBS to well-
established third country markets. In addition,
it was
noted that export prices had steadily increased from
2002 until the IP, by about 10 % and 15 %. Therefore it
is not expected that the termination of measures vis-à-vis
Taiwan will
renewed
dumping.

lead to a significant

risk of

(124) In accordance with Article 11(3) of the basic Regulation,
it was therefore concluded that the changed circum-
stances with respect
investigation
regarding dumping could reasonably be considered to
be of a lasting nature.

to the original

(125) In view of the fact that no dumping was found for
imports of SBS originating in Korea and for one
company in Taiwan and that the injury suffered by the
Community industry could be significantly attributed to
other factors, such as the volumes and prices of imports
not sold at dumped prices and a contraction in demand,
the causal link between dumping and injury insofar as
dumped imports originating in Russia and Taiwan are
concerned could not be sufficiently established. The anti-
dumping proceedings
regarding SBS originating in
Korea, Russia and Taiwan should therefore be terminated
in accordance with Article 9(2) and 9(3) of the basic
Regulation.

HAS ADOPTED THIS REGULATION:

Article 1

The anti-dumping proceeding concerning imports of styrene-
butadiene-styrene thermoplastic rubber originating in the
Republic of Korea and Russia is hereby terminated.

Article 2

Regulation (EC) No 1993/2000 imposing a definitive anti-
dumping duty on imports of SBS originating in Taiwan is
hereby repealed.

Article 3

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, 19 August 2005.

For the Council

The President

J. STRAW