CELEX: 51988PC0122
Language: en
Date: 1988-03-09
Title: Proposal for a COUNCIL REGULATION (EEC) extending the anti-dumping duty imposed by Regulation (EEC) No 1058/86 to certain electronic scales assembled in the Community (submitted by the Commission)

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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(88 ) 122 final
                                                Brussels ,         9 March 1988
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                                Proposai for a
                          COUNCIL REGULATION ( EEC )
 extending the anti-dumping duty imposed by Regulation ( EEC ) No 1058 / 86
         to certain electronic scales assembled in the Community
                       ( submitted by the Commission )
 ---pagebreak---                                                                       c + n - 1 2.7.
                            EXPLANATORY MEMORANDUM
1 . The Council , by Regulation (EEC ) No 1058 /861 , imposed a definitive
anti-dumping duty on imports of certain electronic weighing scales
originating in Japan .
2. In July 1987 the Commission received a complaint from three
Community producers representing a major proportion of Community output
of electronic weighing scales . The complaint alleged that the
anti-dumping duty imposed by Regulation (EEC ) No 1058 /86 was being
circumvented by the assembly of the product concerned in the Community
under the conditions specified in Article 13(10 ) of Regulation (EEC )
No 2176/842, as amendecP .
3 . In September 1987 the Commission opened an investigation under
Article 13(10 ) concerning the electronic weighing scale assembly
operation of two subsidiaries of Japanese companies on whose products
the definitive anti-dumping duty had been imposed .
4 . Both these companies had started the assembly operations after the
initiation , in September 1983, of the original anti-dumping
investigation .
5 . The value of the parts was generally determined on an into factory,
duty paid basis .
6. For one company, TEC (UK ) Ltd , it was found that the nature of the
parts sourced in the Community was relatively simple . All parts of a
higher technological value were imported from Japan and few genuine
efforts appear to have been made to alter the sourcing pattern . No
 research and development was undertaken in the Community by this company
nor had the assembly operation led to more than a very limited number of
jobs being created .
 10J No L 97, 12.04.1986, p. 1 .
20J No L 83, 24.03.1984, p. 4.
30J No L 167, 26.06.1987, p. 9.
 ---pagebreak---                                   - 2 -
7.  However , for the other company , TEC-Keylard BV ( Netherlands), the
weighted average of Japanese parts for all models produced by it in the
Community was found to be less than 60% .   The Commission has accordingly
terminated the proceeding as it concerns this company .
8 . For TEC ( UK ) Ltd the value of Japanese parts exceeded the value of
all non-Japanese parts by 92.38% for the sole model it assembled in the
Community during the investigation period .
9 . It is proposed , accordingly, that the definitive anti-dumping duty
be extended to products assembled in the Community by TEC (UK ) Ltd and
that the rate of duty per unit assembled by the company concerned be
65.63 ECU .
                                                                           J
 ---pagebreak---                                       Proposai for a
                              COUNCIL REGULATION ( EEC )
    extending the anti-dumping duty imposed by Regulation ( EEC ) No 1058 / 86
            to certain electronic scales assembled in the Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) Na 2176 /84 of 23 July 1984 on
protection against dumped or subsidized imports from third countries not
                                                 1
members of the European Economic Community , as amended by Regulation ( EEC )
No 1761 /87^, and in particular Article 13(10) thereof ,
Having regard to the proposal submitted by the Commission after consultations
within the Advisory Committee as provided for under the above Regulation,
Whereas :
                                       A. Procedure
1 . In July 1987 , the Commission received a complaint lodged by W & T Avery Ltd -,
Esselte Moreau S.A. and Bizerba-Werke Wilhelm Kraut GmbH 8 Co . KG , representing
the majority Community production of electronic scales . The complaint contained
sufficient evidence of the fact that following the opening of the investigation
on electronic scales originating in Japan^, which led to the adoption of Council
                                    4
     Régulation ( EEC ) No 1058 /86 imposing a definitive anti-dumping duty on imports
of those products , two companies were assembling electronic scales in the
Community under the conditions referred to in Article 13(10 ) of Régulation ( EEC )
No 2176 /84 . After consultation , the Commission accordingly announced , by notice
published in the Official Journal of the European Communities^, the initiation of
  0J No L  201 , 30.7.1984 , p. 1 .
  0J No L  167 , 26.6.1987 , p. 9 .
  0J No C  236 , 3.9.1983 , p. 5 .
  0J No L   97 , 12.4.1986 . p. 1 .
  oj No C  235 , 1.9.1987 , p. 3 .
 ---pagebreak--- an investigation , under the said Article 13(10 ), concerning electronic
scales assembled in the Community by the following companies :
- TEC (UK) Ltd , Pres ton , United Klngdom
- TEC-Keyl ard   Weeqschalen Nederland B.V.
2.  The Commission so advised the companies concerned , the
represent at Ives of Japan and the complainants and gave the parties
direct ly concerned the opportun ! ty to make known thelr vlews In wrltlng
and to reçues t a hearlng .
3.  The two companles concerned as wel I as the complalnants made thelr
views known In wrltlng .    TEC (UK) and the compl alnants requested and were
granted hearings by the Commlssfon .
4.   No submissions were made by purchasers of electronic scales assembled
In the Community .   The Commission sought and verified all Information It
deemed necessary for the purpose of the assessment of the character of
the alleged assembly operations and carried out Investigations at the
premises of the following companies :
- TEC (UK) Ltd , Preston , United Klngdom
- TEC-Keyl ard Weegschalen    Nederland B.V.
5.   The perlod of Investigation was from 1 January to 31 July 1987 .
                 B. Relat lonshlp or association wlth exporter
6.   It was found that TEC (UK) was a subsidiary of TEC ( Japan ) and that
TEC-Key I ard had substant fal capital links and close economic and
commercial relations with TEC ( Japan ).
                                 C.  Product Ion
7.   The two companies started their assembly operat Ions after the
Initiation of the anti-dumping proceeding concerning the Imports of
electronic scales originating In Japan on 3 September 1983 .
 ---pagebreak---                                        - 3 -
                                     D.  Parts
8.     The value of parts and the ratio between Japanese parts and parts of
other origin were determined on the basis of the companies' purchase
prices of these parts when delivered to the factories In the Community ,
that is on an into-factory , duty-paid basis .
TEC-Kevlard
9.     TEC-Key I ard claimed that some subassembled Items used for some models
were of Community origin .       It was found that these Items were assembled
 In the Community , from parts Imported from Japan and from parts purchased
 In the Community , by an Independent Community producer .      On the basis of
 Information received from two sources . one being the complainants
carrying out virtually Identical assembly operations themselves and the
other being the company referred to above , It was concluded that th / s
subassembly did constitute a substant lal process or operation as required
by Article 5 of Counci L Regulation ( EEC ) No802 / 68 . The assembly operation and
the manufacture of the components carried out In the Community was of a
substant lal nature .     The Item was thus of Community origin .
 10 . The weighted average value of Japanese parts for all models produced
 by TEC-Key I ard was found to be less than 60% .       The Investigation Is ,
 therefore , terminated by a Commission Decision .
 TEC ( UK )
  11 . Only one model was produced during the Invest Igat Ion period .    It was
 found that the value of Japanese parts used by TEC ( UK ) was 92.38% of the
  total parts value .
  6 OJ No L 148 , 28.6.1968 , p. 1 .
                                                                                 é
 ---pagebreak---                                       - 4 -
                            E.  Other cl rcumstances
12 . Consideration was given to other relevant circumstances with regard
to the assembly operat Ions referred to above , in accordance with Article
13(10)(a)of Regulation ( EEC ) No 2176 /84 .
13 . It was found that no genulne attempts hâve been made by TEC (UK) to
change the sourd ng pattern .
14 . As to direct labour , It was found that a very llmlted number of new
Jobs had been created by the assembly opérât Ions of TEC ( UK ).
Furthermore , this company only carries out assembly operat Ions of a very
basic nature whereas the Community producers normally have an Integrated ,
In-depth product Ion which requires more personnel .     Since the Increased
sales of assembled electronic scales result In decreased sales by the
Community producers , It can only be concluded that the setting up of the
assembly operation of that company has resulted In a net loss of
employment In thè Community .
15 . Furthermore , as regards research and development , It was found that
none was carried out In the Community .      In this context , TEC ( UK ) claimed
that the fact that Its technical manager visited TEC Japan 's factory for
two months In order to receive training as well as Its decision to set up
an R&D centre for the development of software appl Icat Ion should be duly
taken Into consideration .     This claim has to be rejected since these
activities , one of which has yet to become operational , do not constitute
research and development carried out In the Community for the products
under consideration .
                                 F.  Conclusions
16 . In view of the foregoing , It Is concluded that the anti-dumping duty
Imposed by Regu ! at ion (EEC ) No 1058/ 86 should be extended to certain
electronic scales assembled In the Community .
 ---pagebreak---                                         - 5 -
                                    G. Undertaklngs
17 . TEC (UK), against which protective measures are considered necessary ,
after having been     informed of the essential facts and cons I derat Ions on
the basis of which the present measures are being proposed , offered an
undertaking referring , In particular , to the attainment of a certain
proportion of parts originating In the Community .        The Commission does
not consider this undertaking to be acceptable at present for reasons
that have been given separately to the Interested company .        The
Commission Is Invited , however , to re-examine the acceptabl 1 1 ty of the
undertaking and to proceed to the necessary verification as soon as It
has been Informed by the company concerned that the conditions Justifying
the present extension of the anti-dumping duty to assembled products have
been removed .   Sat fsfactory guarantees should also be given that these
conditions would not recur In the future .        The acceptance of such an
undertaking should result In the suspension of the duty extended by this
Regulation .
HAS ADOPTED THIS REGULATION :
                                       Article 1
 1.  The definitive anti-dumping duty Imposed by Régulât Ion (EEC )
No 1058 / 86 on Imports of electronic scales for use In the retail trade
which Incorporate     a digital display of the weight , unit price and price
to be paid (whether or not Including a means of printing these         data )
corresponding to Combined Nomenclature Code ex 8423 81 50 , originating In
Japan , Is hereby    also      Imposed on electronic scales Introduced Into the
commerce of the Community after having been assembled In the Community by
TEC (UK) Ltd , Preston , United Kingdom .
2.   The duty shal I be    65 . 6Z ECU per unit assembled by the company
concerned .
 3.   The duty shall be applicable to electronic scales assembled by the
 above company until such time as a sat Isfactory undertaking Is accepted
 with regard to such products .
 ---pagebreak---                                       - 6 -
                                    Article 2
1 . Parts and mater I al s sul table for use In the assembly or production of
e‘ectronlc scales by the company refer red to In Article 1(1 ) and
originating In Japan can only be considered to be In free cl rcul at Ion
Insofar as they will not be used In the assembly or production operat Ions
referred to above .
2.  Electronic scales thus assembled or produced shall be declared to the
competent authorities before leaving the assembly or production plant for
their Introduction Into the commerce of the Community .     For the purpose
of levying an ant l-dumpl ng duty , this declaration shall be considered to
be equivalent to the declaration referred to In Article 2 of       Council
Directive 79/695/EEC 7 .
3.  The provisions In force concernlng customs dut les shal I apply .
                                    Article 3
Thls Régulât Ion shal I enter Into force on the date of Its publication In
the Official Journal of the European Communales .
This Régulation shall be binding in its entirety and directly applicable in
ail Member States .
Done at Brussels ,                                          For t he Counci l
70J No L 205 , 13.8.1979 , p. 19 .
                                                                              q