Proposal for a Council Regulation amending Regulation (EC) No 1531/2002 imposing a definitive anti-dumping duty on imports of colour television receivers originating, inter alia, in the People’s Republic of China
Date: 2006-03-06
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, import, originating product, television equipment

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 06.03.2006 
COM(2006) 101 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1531/2002 imposing a definitive anti-dumping duty on 
imports of colour television receivers originating, inter alia, in the People’s Republic of 
China 

(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 colour television receivers originating, inter alia, in the People’s Republic 
of China. 

120 

•  General context 

This proposal is made within the context of the implementation of the basic Regulation 
and  is  the  result  of  an  investigation  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  1531/2002,  the  Council  imposed  definitive  anti-dumping 
measures  on  imports  of  colour  television  receivers  originating,  inter  alia,  in  the 
People’s  Republic  of  China.  In  parallel,  by  Decision  2002/683/EC,  the  Commission 
accepted  a  joint  undertaking  from  7  different  companies  offered  in  conjunction  with 
the China Chamber of Commerce for Import and Export of Machinery and Electronic 
Products (CCCME).  

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•  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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The  interested  parties  concerned  have  already  had  the  possibility  to  defend  their 
interests during the investigation, 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  but  contains  an 
exhaustive list of conditions that have to be assessed. 

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3)  LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

By  Regulation  (EC)  No  1531/2002,  the  Council  imposed  definitive  anti-dumping 
duties on imports of colour television receivers originating, inter alia, in the People’s 
Republic of China. The exception is where this product is exported by the companies 
Haier  Electrical  Appliances  Corp.,  Ltd,  Hisense  Import  &  Export  Co.,  Ltd,  Konka 
Group  Co.,  Ltd,  Sichuan  Changhong  Electric  Co.,  Ltd,  Skyworth  Multimedia 
International (Shenzen) Co., Ltd, TCL King Electrical Appliances (Hui Zhou) Co., Ltd 
and  Xiamen  Overseas  Chinese  Electronic  Co.,  Ltd,  from  which  the  Commission,  by 
Decision  2002/683/EC,  has  accepted  a  joint  undertaking  offered  in  conjunction  with 
the China Chamber of Commerce for Import and Export of Machinery and Electronics 
Products (‘CCCME’). 

One company has now been found to have breached the undertaking and therefore the 
Commission  has  withdrawn  acceptance  thereof.  It  should  be  noted  that  pursuant  to 
Regulation (EC) No 1531/2002 a breach by any of the companies or the CCCME shall 
be considered as a breach of the undertaking by all signatories. 

In view of this, it is also necessary to amend Regulation (EC) No 1531/2002 so as to 
remove  the  exemption  to  the  anti-dumping  duties  currently  enjoyed  by  the  afore 
mentioned companies.  

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•  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.  

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•  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). 

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

4)  BUDGETARY IMPLICATION 

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The proposal has no implication for the Community budget. 

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Proposal for  

COUNCIL REGULATION 

amending Regulation (EC) No 1531/2002 imposing a definitive anti-dumping duty on 
imports of colour television receivers originating, inter alia, in the People’s Republic of 
China 

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 

(1) 

(2) 

In August 2002, by Regulation (EC) No 1531/20022, the Council imposed a definitive 
anti-dumping duty on imports of colour television receivers (‘the product concerned’) 
originating, inter alia, in the People’s Republic of China (‘the PRC’). 

In parallel, the Commission, by Decision 2002/683/EC3, accepted a joint undertaking 
(‘the undertaking’) offered by Haier Electrical Appliances Corp., Ltd, Hisense Import 
&  Export  Co.,  Ltd,  Konka  Group  Co.,  Ltd,  Sichuan  Changhong  Electric  Co.,  Ltd, 
Skyworth  Multimedia  International  (Shenzen)  Co.,  Ltd,  TCL  King  Electrical 
Appliances (Hui Zhou) Co., Ltd and Xiamen Overseas Chinese Electronic Co., Ltd,) 
(‘the  Companies’)  in  conjunction  with  the  China  Chamber  of  Commerce  for  Import 
and Export of Machinery and Electronics Products (‘CCCME’). 

(3) 

As  a  result,  imports  into  the  Community  of  the  product  concerned  of  PRC  origin, 
produced  by  the  Companies,  and  of  a  type  covered  by  the  undertaking  (‘the  product 
covered by the undertaking’), were exempted from the definitive anti-dumping duties. 

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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 231, 29.8.2002, p. 1. 
OJ L 231, 29.8.2002, p. 42. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

B. 

FAILURE TO COMPLY WITH THE UNDERTAKING 

The  undertaking  offered  by  the  Companies  obliges  them  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’) and to respect 
certain  quantitative  ceilings  laid  down  in  the  undertaking.  These  price  levels  and 
ceilings eliminate the injurious effects of dumping.  

For  the  purposes  of  ensuring  compliance  with  the  undertaking,  CCCME  and  the 
Companies  also  agreed  to  provide  all  information  considered  necessary  by  the 
Commission and to allow on-spot verification visits at their premises in order to verify 
the accuracy and veracity of data submitted in the said quarterly reports. 

As noted in recital 239 of Regulation (EC) No 1531/2002, the undertaking specifically 
provides that a breach by any of the Companies or the CCCME shall be considered as 
a breach of the undertaking by all signatories. Failure to co-operate with the European 
Commission  in  monitoring  the  undertaking  is  considered  as  a  breach  of  the 
undertaking.  

In this regard, the Commission requested to carry out on-spot verification visits at the 
premises  of  CCCME  and  of  the  two  companies  with  the  largest  reported  volume  of 
sales of the product concerned, namely Xiamen Overseas Chinese Electronic Co., Ltd 
and Konka Group Co., Ltd. The Commission sent pre-verification letters to CCCME, 
Xiamen  Overseas  Chinese  Electronic  Co.,  Ltd  and  Konka  Group  Co.,  Ltd  with  an 
indication of the dates for the on-spot verification. The CCCME and Xiamen Overseas 
Chinese  Electronic  Co.,  Ltd  confirmed  the  acceptance  of  the  verification  visit 
requested  by  the  Commission.  However,  Konka  Group  Co.,  Ltd  refused  to  accept  a 
verification visit, thereby breaching the undertaking. 

Commission Decision (EC) No 2006/[INSERT]/EC4 sets out in more detail the nature 
of the breach found. 

In  view  of  the  breach,  acceptance  of  the  undertaking  offered  by  the  Companies  in 
conjunction  with  the  CCCME  has  been  withdrawn  by  Commission  Decision 
No 2006/[INSERT]/EC. A  definitive anti-dumping duty should  therefore  be imposed 
forthwith  on  imports  of  the  product  concerned  exported  to  the  Community  by  the 
companies 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 1531/2002, it is considered appropriate that the definitive anti-dumping rate 
is  set  at  the  level  and  in  the  form  imposed  by  that  Regulation,  namely  44,6%  of  the 
net, CIF free-at-Community-frontier price, before duty. 

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C. 

AMENDMENT OF REGULATION (EC) No 1531/2002 

(11) 

In view of the above, Regulation (EC) No 1531/2002 should be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Article 3, Annex I and Annex II of Regulation (EC) No 1531/2002 are hereby repealed  

Articles 4 and 5 of Regulation (EC) No 1531/2002 should be renumbered as Articles 3 and 4. 

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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