SPANISH AUTHORITIES AND LATER CARRIED OUT INSPECTIONS AT THE PREMISES IN SPAIN OF THE VARIOUS FIRMS INVOLVED IN THE PRODUCTION AND EXPORT OF THE PRODUCT IN QUESTION , NAMELY : BABCOCK AND WILCOX ESPANOLA SA ( BILBAO ), TUBOS REUNIDOS SA ( BILBAO ), TUBEXPORT ( BILBAO ), WHICH ACTS AS THE JOINT EXPORT COMPANY FOR THE TWO FORMER FIRMS , AND TUBACEX COMERCIAL SA ( BILBAO ), WHICH EXPORTS MATERIAL PRODUCED BY TUBACEX SA ( LLODIO , ALVA ); WHEREAS THE COMMISSION ALSO CARRIED OUT INSPECTIONS AT THE PREMISES OF THE MAJOR GERMAN AND UK FIRMS AND ASSOCIATIONS REPRESENTED BY THE COMPLAINANT , NAMELY : IN GERMANY , MANNESMANN ROHREN-WERKE AG ( DUESSELDORF ) , EISENWERKGESELLSCHAFT MAXIMILIANSHUETTE MBH ( SUELZBACH-ROSENBERG ), NEUNKIRCHER EISENWERK AG ( HOMBURG ), AND THE STAHLROHRVERBAND EV ( DUESSELDORF ); IN THE UNITED KINGDOM , BRITISH STEEL CORPORATION TUBES DIVISION ( CORBY , NORTHAMPTONSHIRE ), TI TUBE DIVISION SERVICES LTD ( BIRMINGHAM ), AND TI WELDLESS LTD ( WOLVERHAMPTON ); WHEREAS ALL THE IMPORTERS KNOWN TO BE CONCERNED ARE STOCKHOLDERS ; WHEREAS THE COMPETITION BETWEEN SPANISH AND COMMUNITY PRODUCERS TAKES PLACE AT THE LEVEL OF SALE TO STOCKHOLDERS , WITH THE RESULT THAT THE LATTERS ' RESALE PRICES AND INTERMEDIATE COSTS ARE NOT RELEVANT FOR THE PURPOSE OF DETERMINING INJURY ; WHEREAS IN THESE CIRCUMSTANCES THE COMMISSION HAS NOT FELT IT ESSENTIAL AT THIS PRELIMINARY STAGE TO CARRY OUT ANY INSPECTION AT THE PREMISES OF THESE IMPORTERS ;
WHEREAS , WITH RESPECT TO THE DETERMINATION OF THE AMOUNT OF THE SUBSIDY , THE SPANISH AUTHORITIES SUPPLIED NO INFORMATION IN RESPONSE TO THE ABOVE-MENTIONED FORMAL REQUEST FROM THE COMMISSION , DESPITE A FURTHER REQUEST MADE BY THE COMMISSION IN FEBRUARY 1980 ; WHEREAS PRELIMINARY FINDINGS HAVE THEREFORE BEEN MADE ON THE BASIS OF THE FACTS AVAILABLE ; WHEREAS THESE CONSIST PRINCIPALLY OF VARIOUS MEMORANDA AND CALCULATIONS SUBMITTED ON A CONFIDENTIAL BASIS BY ONE OF THE COMPLAINANTS ;
WHEREAS , ACCORDING TO THIS INFORMATION , TUBE PRODUCTION IN SPAIN INCURS LIABILITY TO PAY A CASCADE TURNOVER TAX , WHICH IS LEVIED ON EVERY TRANSACTION INVOLVING THE PURCHASE OF GOODS OR SERVICES ( OTHER THAN LABOUR );
WHEREAS , ON EXPORT OF THE FINISHED TUBE , THE SPANISH EXPORTERS RECEIVE A TAX REBATE CURRENTLY EQUAL TO 14.5 % OF THE EXPORT PRICE , WHICH ACCORDING TO THE SPANISH AUTHORITIES IS DESTINED TO OFFSET THE INDIRECT TAXES LEVIED ON THE FINISHED PRODUCT AND ON ALL PRIOR TRANSACTIONS INVOLVED IN ITS PRODUCTION ;
WHEREAS , AFTER EXAMINING THE APPLICATION OF THE SPANISH SYSTEM OF INDIRECT TAXATION TO SEAMLESS STEEL TUBES AND THE INPUT STRUCTURE OF THIS PRODUCT , THE COMMISSION HAS CONCLUDED THAT PART OF THIS TAX REBATE FOR SEAMLESS STEEL TUBES , EQUAL TO 10.15 % OF THE EXPORT PRICE , CANNOT BE REGARDED AS A NON-COUNTERVAILABLE EXPORT REBATE ;
WHEREAS , WITH REGARD TO THE INJURY CAUSED TO THE COMMUNITY INDUSTRY , THE EVIDENCE AVAILABLE TO THE COMMISSION SHOWS THAT IMPORTS INTO THE COMMUNITY OF SEAMLESS STEEL TUBES