Proposal for a Council Regulation extending the partial suspension of the definitive anti-dumping duties imposed by Regulation (EC) No 258/2005 on imports of certain seamless pipes and tubes of iron or non-alloy steel originating in Croatia and Ukraine
Date: 2005-10-17
Institutions: European Commission
Subjects: Croatia, Ukraine, anti-dumping duty, anti-dumping legislation, import, originating product, piping, tube

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.10.2005 
COM(2005) 500 final 

Proposal for a 

COUNCIL REGULATION 

extending the partial suspension of the definitive anti-dumping duties imposed by 
Regulation (EC) No 258/2005 on imports of certain seamless pipes and tubes of iron or 
non-alloy steel originating in Croatia and Ukraine 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

110 

• 

Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of  22 
December 1995 on protection against dumped imports from countries not members of 
the European Community, as last amended by Council Regulation (EC) No 461/2004 
of  8  March  2004  (‘the  basic  Regulation’)  in  the  proceedings  concerning  imports  of 
certain  seamless  pipes  and  tubes  of  iron  or  non-alloy  steel  originating  in  Croatia  and 
Ukraine. 

120 

• 

General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

130 

• 

Existing provisions in the area of the proposal 

Council  Regulation (EC) No 258/2005  of 17.2.2005 imposed definitive  anti-dumping 
duties  on  imports  of  certain  seamless  pipes  and  tubes  of  iron  or  non-alloy  steel 
originating  in  Croatia  and  Ukraine.  The  above  Regulation  amended  definitive  anti-
dumping  duties  imposed  by  Regulation  (EC)  No  348/2000  of  17.2.2000  as  last 
amended by Regulation (EC) No 1515/2002 of 24.8.2002.  By Decision 2005/133/EC 
of  17.2.2005,  the  Commission  suspended  the  definitive  anti-dumping  duties  partially 
for a period of nine months, with effect from 18 February 2005.  

Proposal  for  extending  the  partial  suspension  of  the  definitive  anti-dumping  duties 
imposed by Regulation (EC) No 258/2005. 

141 

• 

Consistency with the other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

• 

Consultation of interested parties 

219 

In  line  with  the  provisions  of  the  basic  Regulation  the  Commission  informed  the 
Community  industry  of  its  intention  to  extend  the  partial  suspension  of  the  anti-
dumping measures and provided it with an opportunity to comment. The Community 
industry did not raise any objection. 

• 

Collection and use of expertise 

229 

There was no need for external expertise. 

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230 

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Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The  basic  Regulation  does  not  foresee  a  general  impact  assessment  but  contains  an 
exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

305 

• 

Summary of the proposed action 

Article  14(4)  of  the  basic  Regulation  provides  that,  in  the  Community  interest,  anti-
dumping  measures  may  be  suspended  on  the  grounds  that  market  conditions  have 
temporarily changed to an extent that injury would be unlikely to resume as a result of 
such a suspension. The anti-dumping measures may be suspended by a decision of the 
Commission  for  a  period  of  nine  months.  Article  14(4)  also  specifies  that  the 
suspension may be extended for a further period, not exceeding one year, if the Council 
so decides on a proposal from the Commission. Article 14(4) further specifies that the 
anti-dumping  measures  concerned  may  be  reinstated  at  any  time  if  the  reason  for 
suspension is no longer applicable. 

Following  the  partial  suspension  of  the  definitive  anti-dumping  duties  by  Decision 
2005/133/EC, the Commission has continued to monitor the market situation of certain 
seamless pipes and tubes of iron or non-alloy steel, in particular with regard to import 
flows from Croatia and Ukraine. 

An  examination  of  recent  import  flows  reveals  that  the  imports  from  Croatia  and 
Ukraine have remained at very low levels.  

It  is  considered  that  the  market  is  in  the  same  situation  as  when  the  measures  were 
partially suspended. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation 
extending  the  partial  suspension  of  the  definitive  anti-dumping  duties  in  force  on 
imports from Croatia and Ukraine. This Regulation should be published in the Official 
Journal no later than 17 November 2005. 

310 

• 

Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community,  as  last 
amended by Council Regulation (EC) No 461/2004 of 8 March 2004. 

329 

• 

Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

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Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The form of action is described in the above-mentioned basic regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable 

• 

Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason(s). 

The above-mentioned basic regulation does not foresee alternative options. 

331 

332 

341 

342 

4)  BUDGETARY IMPLICATION 

409 

The proposal has no implication for the Community budget. 

5)  ADDITIONAL INFORMATION 

520 

• 

Prolongation of existing legislation 

The adoption of the proposal will lead to the prolongation of existing legislation. 

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Proposal for a 

COUNCIL REGULATION 

extending the partial suspension of the definitive anti-dumping duties imposed by 
Regulation (EC) No 258/2005 on imports of certain seamless pipes and tubes of iron or 
non-alloy steel originating in Croatia and Ukraine 

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(1),  (‘the 
basic Regulation’), and in particular Article 14(4) thereof, 

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

Whereas: 

A. 

PROCEDURE 

(1) 

Following  a  review  investigation  carried  out  in  accordance  with  Article  11(3)  of  the 
basic  Regulation  (‘review  investigation’),  the  Council,  by  Regulation  (EC)  No 
258/2005(2) (‘the definitive Regulation’), imposed an anti-dumping duty of 38,8% on 
imports  of  certain  seamless  pipes  and  tubes  of  iron  or  non-alloy  steel  (‘SST’) 
originating  in  Croatia  and  an  anti-dumping  duty  of  64,1%  on  imports  of  SST 
originating  in  Ukraine  with  the  exception  of  imports  from  Dnipropetrovsk  Tube 
Works  (‘DTW’)  which  are  subject  to  an  anti-dumping  duty  of  51,9  %  (‘the  existing 
measures’).  The  definitive  Regulation  thus  amended  definitive  anti-dumping  duties 
imposed  by  Regulation  (EC)  No  348/20003  as  last  amended  by  Regulation  (EC)  No 
1515/20024 and repealed the possibility of exemption from the duties provided for in 
Article 2 of Regulation (EC) No 348/2000 (‘original measures’).  

(2) 

By Decision 2005/133/EC5 (‘the Decision’), the Commission suspended the definitive 
anti-dumping  duties  partially  for  a  period  of  nine  months,  with  effect  from  18 
February 2005. 

1 

2 
3 
4 
5 

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 46, 17.2.2005, p. 7. 
OJ L 45, 17.2.2000, p. 1. 
OJ L 228, 24.8.2002, p. 8. 
OJ L 46, 17.2.2005, p. 46. 

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B.  MEASURES IN FORCE ON IMPORTS OF SST FROM ROMANIA AND 
RUSSIA 

(3) 

(4) 

(5) 

(6) 

(7) 

By  Regulation  (EC)  No  2320/97,  anti-dumping  duties  were  imposed  on  imports  of 
SST  originating,  inter  alia,  in  Romania  and  Russia6.  By  Decisions  97/790/EC7  and 
2000/70/EC8, undertakings were accepted from exporters in, inter alia, Romania and 
Russia.  By  Regulation  (EC)  No  1322/20049,  it  was  decided  to  no  longer  apply  the 
measures  in  force  on  imports  of  SST  originating  in  Romania  and  Russia  (‘the  non-
applied  measures’)  as  a  matter  of  prudence  due  to  an  anti-competitive  behaviour  of 
certain Community producers10. 

C. 

GROUNDS FOR EXTENDING OF THE PARTIAL SUSPENSION 

Article  14(4)  of  the  basic  Regulation  provides  that,  in  the  Community  interest,  anti-
dumping  measures  may  be  suspended  on  the  grounds  that  market  conditions  have 
temporarily changed to an extent that injury would be unlikely to resume as a result of 
such a suspension. The anti-dumping measures may be suspended by a decision of the 
Commission  for  a  period  of  nine  months.  Article  14(4)  also  specifies  that  the 
suspension  may  be  extended  for  a  further  period,  not  exceeding  one  year,  if  the 
Council so decides on a proposal from the Commission. Article 14(4) further specifies 
that the anti-dumping measures concerned may be reinstated at any time if the reason 
for suspension is no longer applicable. 

Following the partial suspension of the definitive anti-dumping duties by the Decision, 
the  Commission  has  continued  to  monitor  the  market  situation  of  SST,  in  particular 
with regard to import flows from Croatia and Ukraine. 

An  examination  of  recent  import  flows  reveals  that  the  imports  from  Croatia  and 
Ukraine have remained at very low levels. 

It  is  considered  that  the  market  is  in  the  same  situation  as  when  the  measures  were 
partially suspended. Given the very low levels of imports from Croatia and Ukraine, it 
is considered that, in this specific situation, it is unlikely that injury to the Community 
industry  would  resume  if  the  partial  suspension  of  the  measures  would  be  extended. 
Indeed, as long as the current market conditions prevail, where Russian and Romanian 
imports  are  likely  to  maintain  their  strong  presence,  it  would  be  unlikely  that 
Ukrainian  and/or  Croatian  imports  would  increase  significantly.  As  a  result,  injury 
would be unlikely to resume as a result of such extended suspension. Indeed, because 
of the special circumstances regarding, inter alia, the non-application of the measures 
on imports from Russia and Romania, it is considered that the duty levels of 23% and 
38,5%  established  in  the  original  investigation  for  Croatia  and  Ukraine  respectively 
would be sufficient to eliminate injurious dumping.  

6 

7 
8 
9 
10 

OJ  L  322,  25.11.1997,  p.1.  Regulation  as  last  amended  by  Regulation  (EC)  No  235/2004  (OJ  L  40, 
12.2.2004, p. 11). 
OJ L 322, 25.11.1997, p.63. 
OJ L 23, 28.1.2000, p.78. 
OJ L 246, 20.7.2004, p. 10. 
See recitals (9) et seq. of Regulation (EC) No 1322/2004. 

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(8) 

(9) 

(10) 

For  the  above  reasons,  it  is  proposed  that the  partial  suspension  of  the  anti-dumping 
measures on imports of SST be extended for a further period of one year, pursuant to 
Article 14(4) of the basic Regulation. 

Should  the  reasons  for  the  suspension  no  longer  be  applicable,  the  anti-dumping 
measures may be reinstated and the partial suspension repealed forthwith. 

D. 

CONSULTATION OF THE COMMUNITY INDUSTRY 

In  accordance  with  the  provisions  of  Article  14(4)  of  the  basic  Regulation  the 
Commission  informed  the  Community  industry  of  its  intention  to  extend  the  partial 
suspension  of  the  anti-dumping  measures  and  provided  it  with  an  opportunity  to 
comment. The Community industry did not raise any objection.  

HAS ADOPTED THIS REGULATION: 

The  partial  suspension  of  the  definitive  anti-dumping  duties  imposed  by  Commission 
Decision 2005/133/EC is hereby extended until 18 November 2006. 

Article 1 

This  Regulation  shall  enter  into  force  on  the  day  following  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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