Proposal for a Council Regulation repealing the antidumping duties imposed by Council Regulation (EC) No 1050/2002 of 13 June 2002 on imports of recordable compact disks originating in Taiwan and allowing for their repayment or remission and repealing the countervailing duties imposed by Council Regulation (EC) No 960/2003 of 2 June 2003 on imports of recordable compact disks originating in India, allowing for their repayment or remission and terminating the proceeding in their respect
Date: 2007-10-02
Institutions: European Commission
Subjects: India, Taiwan, anti-dumping duty, countervailing charge, import, originating product, record

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.10.2007 
COM(2007) 561 final 

Proposal for a 

COUNCIL REGULATION 

repealing the antidumping duties imposed by Council Regulation (EC) No 1050/2002 of 
13 June 2002 on imports of recordable compact disks originating in Taiwan and 
allowing for their repayment or remission and repealing the countervailing duties 
imposed by Council Regulation (EC) No 960/2003 of 2 June 2003 on imports of 
recordable compact disks originating in India, allowing for their repayment or 
remission and terminating the proceeding in their respect 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

•  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 2117/2005  of  21  December  2005  ('the  basic  anti-dumping  Regulation')  and  of 
Council  Regulation  (EC)  No  2026/97  on  protection  against  subsidized  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 anti-subsidy Regulation') in 
the  proceedings  concerning  antidumping  duties  imposed  on  imports  of  recordable 
compact disks originating in Taiwan and concerning countervailing duties imposed on 
imports of recordable compact disks originating in India. 

•  General context 

This proposal is made in the context of the implementation of the basic anti-dumping 
Regulation and of the basic anti-subsidy 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 anti-dumping Regulation and in the basic anti-subsidy Regulation. 

•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceedings  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
anti-dumping Regulation and of the basic anti-subsidy 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 anti-dumping Regulation 
and of the basic anti-subsidy Regulation. 

The  basic  anti-dumping  Regulation  and  the  basic  anti-subsidy  Regulation  do  not 
foresee  a  general  impact  assessment  but  contain  an  exhaustive  list  of  conditions  that 

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have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On 22 March 2007, the Commission announced by a notice, published in the Official 
Journal  of  the  European  Union1,  the  initiation  of  a  partial  interim  review  of  the 
antidumping measures applicable to imports of recordable compact disks originating in 
Taiwan  and  of  a  partial  interim  review  of  the  countervailing  measures  applicable  to 
imports of recordable compact disks originating in India. 

The reviews, initiated on the Commission's own initiative, have been limited in scope 
to the examination of the Community interest. 

The  enclosed  Commission  proposal  for  a  Council  Regulation  contains  the  definitive 
conclusions regarding Community interest.  

Member States were consulted during the Anti-Dumping and Anti-subsidy Committees 
of 6 September 2007. Member States were largely in favour of the proposed course of 
action. 

It  is  proposed  that  the  Council  adopts  the  attached  proposal  for  a  Regulation  which 
should be published in the Official Journal of the European Union as soon as possible. 

•  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  2117/2005  of  21  December  2005  and 
Council  Regulation  (EC)  No  2026/97  on  protection  against  subsidized  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 anti-subsidy Regulation'). 

•  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 reason(s): 

The form of action is described in the above-mentioned basic anti-dumping Regulation 
and basic anti-subsidy 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 

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OJ C 66, 22.3.2007, p. 16. 

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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 anti-dumping Regulation and basic anti-subsidy Regulation 
do not foresee alternative options. 

4)  BUDGETARY IMPLICATION 

The  proposal  has  implications  for  the  Community  budget.  Measures  are  repealed 
retroactively.  Repayment  or  remission  must  be  requested  from  national  customs 
authorities in accordance with applicable customs legislation. 

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Proposal for a 

COUNCIL REGULATION 

repealing the antidumping duties imposed by Council Regulation (EC) No 1050/2002 of 
13 June 20022 on imports of recordable compact disks originating in Taiwan and 
allowing for their repayment or remission and repealing the countervailing duties 
imposed by Council Regulation (EC) No 960/2003 of 2 June 20033 on imports of 
recordable compact disks originating in India, allowing for their repayment or 
remission and terminating the proceeding in their respect 

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 Community4 ('the basic 
anti-dumping Regulation'), and in particular Article 11 (3) thereof, 

Having  regard  to  Council  Regulation  (EC)  No  2026/97  on  protection  against  subsidized 
imports  from  countries  not  members  of  the  European  Community  ('the  basic  anti-subsidy 
Regulation'),5 and in particular Article 19 thereof, 

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

Whereas: 

A. 

PROCEDURE 

Measures in force and subject of the review 

Definitive  anti-dumping  duties  applicable  to  imports  of  recordable  compact  disks 
originating  in  Taiwan  were  imposed  on  18  June  2002.6  (the  original  anti-dumping 
proceeding') They ranged from 17,7% to 38,5%. These measures lapsed ipso iure on 
18 June 2007.7 

OJ L 160, 18.6.2002, p. 2. 
OJ L 138, 5.6.2003, p. 1. 
OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  2117/2005  (OJ L 340, 
23.12.2005). 
OJ L 288, 21.10.97, p. 1, as last amended by Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12). 
OJ L 160, 18.6.2002, p. 2. 
OJ C 130, 12.6.2007, p. 17. 

1. 

(1) 

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(2) 

2. 

(3) 

3. 

(4) 

(5) 

(6) 

(7) 

4. 

(8) 

Definitive countervailing duties on imports of CD-Rs from India were imposed on 5 
June 2003.8 They amounted to 7,3% ('the original anti-subsidy proceeding'). 

Previous  investigations  concerning  imports  of  CD-Rs  from  the  People's 
Republic of China, Hong Kong and Malaysia 

By Decision 2006/753/EC of 3 November 2006, the Commission terminated an anti-
dumping  proceeding  concerning  imports  of  recordable  compact  discs  ('CD-Rs') 
originating  in  the  People's  Republic  of  China  ('PRC'),  Hong  Kong,  and  Malaysia  on 
grounds of lack of Community interest in the imposition of measures ("the termination 
Decision").9  It  has  been  concluded  that  due  to  its  low  market  share  the  Community 
industry  was  not  likely  to  obtain  any  significant  benefits  from  the  imposition  of 
measures. The imposition of measures was thus considered disproportionate in view of 
the substantial negative effects on importers, distributors, retailers and consumers. 

Initiation of a review 

The  initiation  of  a  partial  interim  review  of  the  antidumping  measures  applicable  to 
imports  of  recordable  compact  disks  originating  in  Taiwan  and  of  a  partial  interim 
review  of  the  countervailing  measures  applicable  to  imports  of  recordable  compact 
disks originating in India was announced on 22 March 2007 in the Official Journal of 
the European Union (" the notice of initiation")10.  

The reviews, initiated on the Commission's own initiative, have been both limited in 
scope  to  the  examination  of  the  Community  interest,  with  the  decision  thereon 
possibly having retroactive effect as of 5 November 2006, i.e. the date of entering into 
force  of  the  termination  Decision.  For  the  purpose  of  procedural  efficiency,  the 
reviews of both anti-dumping duties applicable to imports of CD-Rs from Taiwan and 
of countervailing duties applicable to imports of CD-Rs from India were combined in 
one investigation. 

As  mentioned  above,  the  anti-dumping  measures  imposed  on  imports  originating  in 
Taiwan lapsed on 18 June 2007. As a consequence, the review concerning Taiwan has 
been  discontinued.  However,  it  was  formally  conducted  until  that  date  and  the 
Commission  considered  most  notably  the  question  of  retroactive  repealing  of  duties 
paid between 5 November 2006 and 18 June 2007. 

Due to the need for procedural efficiency and in order to ensure overall consistency of 
its actions, the Commission combined the conclusions of both reviews in the present 
Regulation. 

Parties concerned by the proceeding 

The Commission officially advised the Community producers, importers and users as 
well  as  exporters  and  representatives  of  India  and  Taiwan  of  the  initiation  of  the 
proceeding.  All  interested  parties  were  given  an  opportunity  to  make  their  views 

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OJ L 138, 5.6.2003, p. 1. 
OJ L 305, 4.11.2006, p. 15. 
OJ C 66, 22.3.2007, p. 16. 

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known  in  writing  and  to  request  a  hearing  within  the  time  limit  set  in  the  notice  of 
initiation.  Due  to  the  fact  that  the  reviews  have  been  limited  to  the  aspects  of 
Community interest, the Commission invited only parties located in the Community, 
i.e.  the  Community  producers,  importers  and  users  to  fill  in  the  questionnaires. 
Questionnaire replies were received from one producer, 14 importers, and 10 users. 

(9) 

The  Commission  received  also  a  letter  from  the  Committee  of  European  CD-Rs 
Manufacturers  ('CECMA')  which  represented  the  complainant  in  the  original  anti-
dumping  and  anti-subsidy  proceedings  and  in  the  proceedings  concluded  by  the 
termination  Decision  -  as  well  as  a  letter  from  the  former  representative  of  the 
company D as identified in the termination Decision. 

(10)  Further, the Commission's services received submissions from other interested parties, 

most notably distributors and suppliers of an Indian exporter. 

(11)  The Commission's services duly analysed all submissions and arguments put forward 
by the interested parties. Given the state of the Community production, however, the 
conclusions  of  the  present  review  will  be  limited  to  the  identification  of  the 
Community industry. 

5. 

Investigation period 

(12)  The  investigation  of  the  aspects  of  Community  interest  covered  the  period  from  1 
January 2006 to 31 December 2006 ('investigation period' or 'IP'). The examination of 
trends  relevant  for  the  assessment  of  Community  interest  covered  the  period  from  1 
investigation  period  ('period  considered'). 
January  2003 

the  end  of 

the 

to 

6. 

Product concerned and like product 

6.1. 

Product concerned 

(13)  The  product  under  review  is  recordable  compact  discs  (CD-Rs)  originating  in  India 
('the  product  concerned'),  currently  classifiable  within  CN  code  ex  8523  40  11.  This 
CN code is given only for information. 

(14)  The  same  product  originating  in  Taiwan  was  under  review  between  22  March  2007 
when the notice of initiation was published and 18 June 2007 when the antidumping 
duties applicable to imports of CD-Rs from Taiwan lapsed. 

(15)  The  product  concerned  is  polycarbonate  disc,  which  is  coated  with  a  layer  of  dye,  a 
layer  of  reflective  material  and  a  protective  layer.  Although  recording  on  such  discs 
can be done in several steps, the recorded information cannot be erased. The disc is an 
optical storage medium for digital data or sound. 

(16)  CD-Rs can be distinguished according to the type of data stored (data CD-Rs versus 
music CD-Rs), the storage capacity, the reflective metal layer and whether or not the 
CD-Rs  are  printed  upon.  All  types  of  CD-Rs  share  the  same  physical  and  technical 
characteristics  and  are  used  for  the  same  purposes.  Therefore  they  are  considered  to 
constitute one single product. 

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6.2. 

Like product 

(17) 

In the framework of the present proceedings no comments were made challenging the 
comparability  of  the  CD-Rs  imported  to  or  produced  in  the  Community.  On  these 
grounds  all  types  of  CD-Rs  originating  in  India  or  Taiwan  and  produced  in  the 
Community are considered to be alike within the meaning of Article 1(4) of the basic 
anti-dumping Regulation and Article 1(5) of the basic anti-subsidy Regulation. 

B. COMMUNITY PRODUCTION AND COMMUNITY INDUSTRY 

1. Community production and Community industry in the proceedings concluded by the 
termination Decision 

(18) 

In  these  proceedings  (see  recital  28,  and  58  et  seq.  of  the  termination  Decision),  the 
Commission's services established that the Community production within the meaning 
of Article 4(1) of the basic Regulation was constituted by 10 producers. Only one of 
them was considered to constitute the Community industry within the meaning of Art. 
4(1)  and  Art.  5(4)  of  the  basic  anti-dumping  Regulation  (Manufacturing  Advanced 
Media ('MAM-E'). 

2. Community production and Community industry in the current proceedings 

(19)  None  of  the  producers  deemed  to  constitute  the  Community  production  in  the 

termination Decision did co-operate in the current proceeding. 

(20)  Further,  the  Commission  received  evidence  that  the  sole  company  constituting  the 
Community  industry  in  the  proceeding  which  led  to  the  termination  Decision 
underwent  liquidation  proceedings.  This  has  been  confirmed  in  the  letter  sent  by  its 
former  representative.  The  Commission  also  received  a  copy  of  a  court  decision 
commencing the liquidation proceedings, whereby the activities of the company have 
been  ceased.  The  questionnaire  sent  out  by  the  Commission  was  returned  with  the 
annotation – 'liquidation judiciaire'. 

(21) 

In addition, the Committee of European CD-Rs Manufacturers ('CECMA'), although it 
expressed that it supported the continued imposition of measures, did not submit any 
questionnaire  or  evidence  on  behalf  of  any  Community  producer  -  member  of  the 
association. 

(22)  Another  company  (Company  A,  as  identified  in  the  termination  Decision)  informed 

the Commission that it ceased production in the Community. 

(23)  Finally, the Commission received also a reply from Company B (as identified in the 
termination Decision). No evidence was presented that would contradict the findings 
set out in the termination Decision, i.e. that company B should not be included in the 
definition of the Community industry and that its production should be excluded from 
the  definition  of  the  Community  production  (see  recital  40  of  the  termination 
Decision). 

(24)  On these grounds it is concluded that there is no remaining Community industry, and 

consequently no Community interest. 

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C. RETROACTIVE APPLICATION 

(25) 

In  view  of  the  above  findings,  the  antidumping  measures  applicable  to  imports  of 
recordable  compact  disks  originating  in  Taiwan  and  the  countervailing  measures 
applicable  to  imports  of  recordable  compact  disks  originating  in  India  should  be 
repealed with a retroactive effect to the date of entering into force of the termination 
Decision. 

(26)  Consequently,  the  definitive  anti-dumping  duties  paid  or  entered  in  the  accounts 
pursuant  to  Council  Regulation  (EC)  No  1050/2002  of  13  June  2002  on  imports  of 
the  definitive 
recordable  compact  disks  (CDR)  originating 
countervailing duties paid or entered into account pursuant to Council Regulation (EC) 
No  960/2003  of  2  June  2003  on  imports  of  recordable  compact  disks  originating  in 
India, and released for free circulation as from 5 November 2006 should be repaid or 
remitted. 

in  Taiwan  and 

(27)  Repayment  or  remission  must  be  requested  from  national  customs  authorities  in 

accordance with applicable customs legislation. 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  anti-dumping  duties  on  imports  of  recordable  compact  disks  (CD-R)  originating  in 
Taiwan  imposed  by  Council  Regulation  (EC)  No  1050/2002  of  13  June  2002  and  the 
countervailing  duties  on  imports  of  recordable  compact  disks  (CD-R)  originating  in  India 
imposed by Council Regulation (EC) 960/2003 of 2 June 2003 are hereby repealed.  

The  anti-subsidy  proceedings  concerning  imports  of  recordable  compact  disks  (CD-R) 
originating in India are hereby terminated. 

Article 2 

Article 3 

This  Regulation  shall  enter  into  force  on  the  day  following  its  publication  in  the  Official 
Journal of the European Union. 

Article 1 shall apply from 5 November 2006. 

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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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