Proposal for a Council Regulation amending Regulation (EC) No 1858/2005 imposing a definitive anti-dumping duty on imports of steel ropes and cables originating, inter alia, in India
Date: 2005-12-23
Institutions: European Commission
Subjects: India, anti-dumping duty, anti-dumping legislation, import, originating product, section

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.12.2005 
COM(2005) 541 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1858/2005 imposing a definitive anti-dumping duty on 
imports of steel ropes and cables originating, inter alia, in India 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  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 proceeding concerning imports of steel 
wire ropes originating, inter alia, in India. 

120 

•  General context 

This proposal is made within the context of the implementation of the basic Regulation 
and  is  the  result  of  enquiries  carried  out  in  line  with  the  substantive  and  procedural 
requirements laid out in the basic Regulation.  

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•  Existing provisions in the area of the proposal 

By  Regulation  (EC)  No  1796/1999,  the  Council  imposed  definitive  anti-dumping 
measures on, inter alia, steel wire ropes originating, inter alia, in India. In parallel, by 
Decision  1999/572/EC,  the  Commission  accepted  an  undertaking  from,  inter  alia,  a 
company  in  India.  By  Regulation  (EC)  No  1858/2005  decided  that  the  anti-dumping 
measures applicable to imports of the product concerned originating, inter alia, in India 
should be maintained. 

141 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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229 

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The interested party concerned has already had the possibility to defend its interests, in 
line with the provisions of the basic Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

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

The  basic  Regulation  does  not  foresee  a  general  impact  assessment  for  the 
circumstances surrounding the present proposal. 

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3)  LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

By  Regulation  (EC)  No  1858/2005,  the  Council  imposed  definitive  anti-dumping 
duties on imports of steel wire ropes originating, inter alia, in India. The exception is 
where this product is exported by the Indian company Usha Belton Ltd (now known as 
Usha  Martin  Ltd)  from  which  the  Commission,  by  Decision  1999/572/EC,  has 
accepted a price undertaking.  

This  company  has  now  been  found  to  have  breached  its  undertaking  therefore  the 
Commission has withdrawn acceptance thereof.  

In view of this, it is also necessary to amend Regulation (EC) No 1858/2005 so as to 
remove the exemption to the anti-dumping duties currently enjoyed by the company.  

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. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

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). 

Other  means  would  not  be  adequate  because  the  basic  Regulation  does  not  foresee 
alternative options. 

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4)  BUDGETARY IMPLICATION 

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The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1858/2005 imposing a definitive anti-dumping duty on 
imports of steel ropes and cables originating, inter alia, in India 

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 Articles 8 and 9 thereof, 

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

Whereas: 

A. 

PREVIOUS PROCEDURE 

In August 1999, by Regulation (EC) No 1796/19992, the Council imposed a definitive 
anti-dumping  duty  on  imports  of  steel  ropes  and  cables  (‘the  product  concerned’) 
originating, inter alia, in India. 

In November 2005, following an expiry review pursuant to Article 11(2) of the basic 
Regulation,  the  Council,  by  Regulation  (EC)  No  1858/20053  decided  that  the  anti-
dumping  measures  applicable  to  imports  of  the  product  concerned  originating,  inter 
alia, in India should be maintained. 

By  Decision  1999/572/EC4,  the  Commission  accepted  a  price  undertaking  from  an 
Indian company, i.e. Usha Martin Industries & Usha Beltron Ltd. This company has 
changed  its  name  in  the  meantime  and  is  now  known  as  Usha  Martin  Ltd  (‘UML’). 
The change of name in no way affected the activities of the company. 

As  a  result,  imports  into  the  Community  of  the  product  concerned  of  Indian  origin, 
produced by UML or by any other related company worldwide, and of a type covered 
by  the  undertaking  (‘the  product  covered  by  the  undertaking’),  were  exempted  from 
the definitive anti-dumping duties. 

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 217, 17.8.1999, p.1. 
OJ L 299, 16.11.2005, p.1. 
OJ  L  217,  17.8.1999,  p.63.  Decision  as  last  amended  by  Regulation  (EC)  No  1678/2003  (OJ  L  238, 
25.9.2003, p.13.)  

(1) 

(2) 

(3) 

(4) 

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(5) 

(6) 

(7) 

(8) 

(9) 

In  this  regard,  it  should  be  noted  that  certain  types  of  steel  wire  rope  currently 
produced  by  UML  were  not  exported  to  the  Community  during  the  investigation 
period which led to the imposition of definitive anti-dumping measures and were not, 
therefore, within the scope of the exemption afforded by the undertaking. Accordingly, 
such steel wire ropes were liable to payment  of  the  anti-dumping duty when entered 
for free circulation in the Community. 

B. 

FAILURE TO COMPLY WITH THE UNDERTAKING 

The undertaking offered by UML obliges it (and any related company worldwide) to, 
inter  alia,  export  the  product  covered  by  the  undertaking  to  the  first  independent 
customer in the Community at or above certain minimum import price levels ("MIPs") 
laid  down  in  the  undertaking.  These  price  levels  eliminate  the  injurious  effects  of 
dumping. In the case of resales in the Community to the first independent customer by 
related  importers,  the  resale  prices  of  the  product  covered  by  the  undertaking,  after 
appropriate adjustments for selling, general and administrative costs and a reasonable 
profit, must also be at levels which eliminate the injurious effects of dumping. 

The  terms  of  the  undertaking  also  oblige  UML  to  provide  the  Commission  with 
regular  and  detailed  information  in  the  form  of  a  quarterly  report  of  its  sales  (and 
resales by its related parties in the Community) of the product concerned originating in 
India to the Community. Such reports are intended to include the products covered by 
the undertaking which benefit from the exemption to the anti-dumping duty as well as 
those types of steel wire ropes not covered by the undertaking and which are therefore 
liable to the anti-dumping duty. 

Unless otherwise indicated, it is assumed by the Commission that the sales reports of 
UML (and the reports of resales of related companies established in the Community) 
are, as submitted, complete, exhaustive and correct in all particulars. 

It  was  also  acknowledged  by  UML  that,  with  regard  to  the  exemption  to  the  anti-
dumping  duties  afforded  by  the  undertaking,  such  exemption  is  conditional  upon 
presentation to Community customs services of an “Undertaking Invoice”. Moreover, 
the company undertook not to issue such Undertaking Invoices for sales of those types 
of  the  products  concerned  not  covered  by  the  undertaking  and  which  are  therefore 
liable to the anti-dumping duty. 

(10) 

It is also a condition of the undertaking that the terms and provisions thereof apply to 
any related company to UML, worldwide. 

(11)  For  the  purposes  of  ensuring  compliance  with  the  undertaking,  UML  also  agreed  to 
provide all information considered necessary by the Commission and to allow on-spot 
verification visits at its premises, and those of any related companies, in order to verify 
the accuracy and veracity of data submitted in the said quarterly reports. 

(12) 

In this regard, verification visits were carried out at the premises of UML in India and 
at those of a related company to UML in Dubai, i.e. Brunton Wolf Wire Ropes FZE 
(‘BWWR’). 

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(13)  The  verification  visit  to  the  Indian  company  showed  that  significant  volumes  of  the 
product concerned not covered by the undertaking had been omitted from the quarterly 
undertaking  sales  reports  submitted  to  the  Commission.  Furthermore,  the  goods  in 
question had been sold by UML to its related importers in the UK and Denmark and 
included on Undertaking Invoices. 

(14)  The verification visit to the Dubai company showed that certain steel wire ropes had 
been  exported  to  the  Community  from  Dubai  and  declared  at  import  into  the 
Community as having United Arab Emirates origin when in fact they were of Indian 
origin and therefore liable to the anti-dumping measures applicable to imports of steel 
wire  ropes  originating  in  India.  The  goods  in  question  had  not  been  reported  on  the 
quarterly  undertaking  sales  report  nor,  as  was  admitted  by  the  company,  had  anti-
dumping  duty  been  paid  on  them.  The  goods  had  also  been  resold  to  the  first 
independent customer in the Community at prices below the MIPs. 

(15)  Commission Decision (EC) No 2005/…./EC5 sets out in more detail the nature of the 

breaches found. 

(16) 

(17) 

In  view  of  these  breaches,  acceptance  of  the  undertaking  offered  by  Usha  Martin 
Industries & Usha Beltron Ltd, now known as Usha Martin Ltd (Taric additional code 
A024)  has  been  withdrawn  by  Commission  Decision  (EC)  No  2005/…/EC.  A 
definitive anti-dumping duty should therefore be imposed forthwith on imports of the 
product concerned exported to the Community by the company concerned. 

In accordance with Article 8(9) of the basic Regulation, the rate of the anti-dumping 
duty must be established on the basis of the facts established within the context of the 
investigation  which  led  to  the  undertaking.  As  the  investigation  in  question  was 
concluded by a final determination as to dumping and resulting injury by Regulation 
(EC)  No  1796/1999  and  as  these  measures  were  maintained  by  Regulation  (EC)  No 
1858/2005,  it  is  considered  appropriate  that  the  definitive  anti-dumping  rate  is  set  at 
the level and in the form imposed by these Regulations, namely 23,8% of the net, CIF 
free-at-Community-frontier price, before duty. 

C. 

AMENDMENT OF REGULATION (EC) No 1858/2005 

(18) 

In view of the above, Regulation (EC) No 1858/2005 should be amended accordingly. 

HAS ADOPTED THIS REGULATION: 

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The table in Article 2(1) of Regulation (EC) No 1858/2005 shall be replaced by the following 
table: 

Article 1 

Country 

Company 

South Africa 

Haggie 
Lower Germiston Road 
Jupiter 
PO Box 40072 
Cleveland 
South Africa 

TARIC 
additional 
code 

A023 

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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