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 South Africa
Date: 2007-11-20
Institutions: European Commission
Subjects: South Africa, anti-dumping duty, anti-dumping legislation, import, originating product, section, steel

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.11.2007 
COM(2007) 730 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 South Africa 

(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 2117/2005  of  23  December  2005  ('the  basic  Regulation')  in  the  proceeding 
concerning imports of steel ropes and cables originating, inter alia, in South Africa.  

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.  

130 

•  Existing provisions in the area of the proposal 

In August 1999, the Council, by Regulation (EC) No 1796/1999, imposed a definitive 
anti-dumping duty on imports of steel ropes and cables originating, inter alia, in South 
Africa. In November 2005, following an expiry review pursuant to Article 11(2) of the 
basic Regulation, the Council, by Regulation (EC) No 1858/2005 decided that the anti-
dumping  measures  applicable  to  imports  of  the  product  concerned  originating,  inter 
alia,  in  South  Africa  should  be  maintained.  The  Commission,  by  Decision 
1999/572/EC  of  13  August  1999,  accepted  a  price  undertaking  from  a  South  African 
company, Scaw Metals Group Haggie Steel Wire Rope ("Haggie" or the “company”). 

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219 

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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 

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. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

305 

•  Summary of the proposed action 

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In August 1999, the Council, by Regulation (EC) No 1796/1999, imposed a definitive 
anti-dumping duty on imports of steel ropes and cables originating, inter alia, in South 
Africa. In November 2005, following an expiry review pursuant to Article 11(2) of the 
basic Regulation, the Council, by Regulation (EC) No 1858/2005 decided that the anti-
dumping  measures  applicable  to  imports  of  the  product  concerned  originating, 
inter alia,  in  South  Africa  should  be  maintained.  The  Commission,  by  Decision 
1999/572/EC  of  13  August  1999,  accepted  a  price  undertaking  from  a  South  African 
company, Scaw Metals Group Haggie Steel Wire Rope. 

The company has now been found to have breached the undertaking and therefore the 
acceptance thereof should be withdrawn.  

In  view  of  this,  it  is  necessary  to  amend  Regulation  (EC)  No  1858/2005  so  as  to 
remove  the  exemption  to  the  anti-dumping  duties  currently  enjoyed  by  the  afore 
mentioned 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 2117/2005 of 23 December 2005. 

329 

•  Subsidiarity principle 

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

331 

332 

341 

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•  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. 

4)  BUDGETARY IMPLICATION 

409 

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 South Africa 

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,  and  in 
particular Articles 8 and 9 thereof, 

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

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

A. 

PREVIOUS INVESTIGATION AND EXISTING MEASURES 
In August 1999, the Council, by Regulation (EC) No 1796/19992, imposed a definitive 
anti-dumping duty on imports of steel ropes and cables originating, inter alia, in South 
Africa. 

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 South Africa should be maintained. 
The  Commission,  by  Decision  1999/572/EC  of  13  August  19994,  accepted  a  price 
undertaking  from  a  South  African  company,  Scaw  Metals  Group  Haggie  Steel  Wire 
Rope ("Haggie" or the “company”). 

As  a  result,  imports  into  the  Community  of  the  product  concerned  of  South  African 
origin, produced by the company and of the product type covered by the undertaking 
(the "product covered") were exempted from the definitive anti-dumping duties. 

In  this  regard  it  should  be  noted  that  certain  types  of  steel  wire  ropes  and  cables 
currently  produced  by  Haggie  were  excluded  from  the  scope  of  the  undertaking. 
Accordingly, such steel wire ropes and cables were liable to the payment of the anti-
dumping duty when entered into free circulation in the Community. 

1 

2 

3 

4 

OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  2117/2005,  OJ  L 340, 
23.12.2005, p. 17 
OJ L 217, 17.8.1999, p. 1. 
OJ L 299, 16.11.2005, p.1 as last amended by Regulation (EC) No 121/2006, OJ L 22, 26.1.2006, p. 1. 
OJ L 217, 17.8.1999, p. 63. 

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(6) 

(7) 

(8) 

B. 

FAILURE TO COMPLY WITH THE UNDERTAKING 

The  undertaking  offered  by  the  company  obliges  it  to,  inter  alia,  export  the  product 
covered to the European Community above certain minimum prices (MIPs) as stated 
in the undertaking. 

It was acknowledged by the company that, with regard to the exemption from the anti-
dumping duties afforded  by the  undertaking, such exemption is conditional upon the 
presentation  to  the  Community  customs  services  of  an  "undertaking  invoice". 
Moreover, the company undertook not to issue such undertaking invoices for sales of 
those types of product concerned which are not covered by the undertaking and which 
are therefore liable to the anti-dumping duty. The company also acknowledged that the 
undertaking  invoices  issued  had  to  contain  the  information  set  out  in  the  Annex  of 
Regulation 1858/2005. 

The terms of the undertaking also oblige the company to provide the Commission with 
regular  and  detailed  information,  in  the  form  of  a  quarterly  report  of  its  sales  of  the 
product  concerned  to  the  European  Community.  Such  reports  were  to  include  the 
products  covered  by  the  undertaking  which  benefited  from  the  exemption  from  the 
payment  of  the  anti-dumping  duty  as,  well  as  those  types  of  steel  ropes  and  cables 
which  are  not  covered  by  the  undertaking  and which  are  therefore  liable  to  the  anti-
dumping duty. 

(9) 

It  is  clear  that  the  aforementioned  sales  reports  should  be,  as  submitted,  complete, 
exhaustive and correct in all particulars and that the transactions fully comply with the 
terms of the undertaking. 

(10)  For  the  purpose  of  ensuring  compliance  with  the  undertaking,  the  Company  also 
undertook  to  allow  on-spot  verification  visits  at  its  premises  in  order  to  verify  the 
accuracy and veracity of the data submitted in the said quarterly reports and to provide 
all information considered necessary by the Commission. 

(11) 

It  should  be  noted  that  the  company  already  received  a  warning  letter  from  the 
Commission  services  on  28  October  2003  for  breaching  the  undertaking  by  issuing 
undertaking invoices for products not covered by the undertaking but otherwise being 
subject  to  the  anti-dumping  measures.  The  warning  letter  stated  that  in  view  of  the 
particular circumstances under which these breaches took place it was not intended to 
withdraw  the  acceptance  of  the  undertaking,  but  it  was  also  pointed  out  that  any 
subsequent  infringement  of  the  undertaking,  even  of  a  minor  nature,  would  make  it 
difficult  for  the  Commission  to  maintain  the  acceptance  of  the  undertaking  from  the 
company. 

(12)  A  verification  visit  was  carried  out  on  5-6th  February  2007  at  the  premises  of  the 

company in South Africa. 

(13)  The verification visit to the company established that the company issued undertaking 
invoices  for  steel  ropes  and  cables  not  covered  by  the  undertaking  but  otherwise 
subject  to  the  anti-dumping  measures.  It  also  established  that  the  company  failed  to 
meet its obligation to respect the MIP on one occasion. Moreover, the company issued 
undertaking  invoices  not  in  conformity  with  the  Annex  of  Regulation  (EC)  No 
1858/2005.  Furthermore,  during  the  verification  visit,  it  was  established  that  the 
quarterly  undertaking  sales  reports  as  submitted  by  the  company  were  not  complete, 
exhaustive and correct in all particulars.  

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(14)  Commission Decision 2007/[..]/EC sets out in more detail the nature of the breaches 

found, 

HAS ADOPTED THIS REGULATION: 

Article 1(5), Article 2 and the Annex of Regulation (EC) No 1858/2005 shall be deleted, and 
Article  1(6)  thereof  shall  be  renumbered  as  Article  1(5),  and  also  Article  3  thereof  shall  be 
renumbered as Article 2. 

Article 1 

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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