CELEX: 51990PC0038
Language: en
Date: 1990-02-01
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON IMPORTS OF POTASSIUM PERMANGANATE ORIGINATING IN CZECHOSLOVAKIA AND DEFINITIVELY COLLECTING THE PROVISIONAL ANTI-DUMPING DUTY IMPOSED ON THOSE IMPORTS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                               C0MC90) 38 final
                                               Brussels, 1 February 1990
                          Proposal for a
                     COUNCIL REGULATION (EEC)
    imposing a definitive anti-dumping duty on imports of
     potassium permanganate originating in Czechoslovakia
          and definitively collecting the provisional
           anti-dumping duty imposed on those imports
                  (presented by the Commission)
 ---pagebreak---                                                                    C^x Sfc J 9*
                           EXPLANATORY MEMORANDUM
1)  Following    the   violation    of    an   undertaking    given    by   a
    Czechoslovak I an    exporter,    the    Commission    reopened^1)     the
    antidumping proceeding, and by Regulation (EEC) No            2535/89^2^
    withdrew    Its acceptance of      the undertaking      and   imposed a
    provisional antidumping duty on Imports of potassium permanganate
    originating In Czechoslovakia.
2)  By Council Regulation       (EEC) No      3844/89(3>, the period of
    validity of the provisional duty was extended for a further period
    not exceeding two months. This provisional duty will expire on 23
    February 1990.
3)  After the imposition of the provisional duties, the Commission gave
    the parties directly concerned the opportunity to answer to the
    questionnaires addressed to them, to make known their views in
    writing and to request a hearing. However, replies sent by the
    exporter and Importers, which made themselves known, covered only a
    part of     the   imports registered      in the official       Community
    statistics. Therefore, dumping and the resulting injury had to be
    determined on the basis of facts available, and official statistics
    were used to fill the gap shown, in that respect, by Imports
    reported in the replies obtained from the exporter and Importers.
4)  Upon request, the Community producer and the Czechoslovak I an
    exporter were informed of the essential facts and considerations on
    the basis of which it was intended to recommend the imposition of a
    definitive duty, and the definitive collection of the amounts
    secured by way of a provisional duty. Comments made by all the
    parties involved were considered prior to the Commission finalising
     its conclusions.
5)  The Commission found that potassium permanganate produced in the
    Community and that exported from Czechoslovakia are like products
     in ail essential physical and technical characteristics. It also
    verified that there are no such differences between the product
    manufactured in Czechoslovakia and that produced In the United
    States which were chosen as reference country (see point 6 below).
6)   In establishing normal value, the-Commission had to take account of
    the fact that Czechoslovakia Is not a market economy country. For
    this purpose the United States were chosen as reference country and
    normal value was established on the basis of the comparable prices
    actually paid or payable for the like product on the United States
    market.
7)  Export prices were determined, In general, on the basis of the
    prices actually paid or payable for the product sold for export to
    the Community. However, for 24 % of the exports taken Into account,
    export prices were based, for the reasons given in point 3 above,
    on official Community statistics.
(1) 0J No   C 216, 22-8-1989, p. 7
(2) 0J NO   L 245, 22-8-1989, p. 5
(3ï 0J NO   L 374, 22-12-1989, p. 1
 ---pagebreak---                                     - tL  -
8)   The comparison of normal value to export prices, after taking
     account    where   appropriate    of   differences    affecting    price
     comparability, showed Czechoslovak I an exports were being dumped In
     the Community with a weighted average dumping margin of 19.6 X.
9)  a)   As regards the injury, Imports Into the Community of potassium
         permanganate originating in Czechoslovakia, in spite of the
         existing undertaking, rose from 131 tons In 1987 to 384 tons in
         1988, and amount to 166 tons on an extrapolated annual basis
         for 1989. The development of these imports led to a market
         share which also Increased from 3.3 % In 1987 to 11.4 % In 1988
         and reached 6.6 % during the first semester of 1989. The low
          level of prices for the Imports concerned forced the Community
         producer to sell the product in the Community market at prices
         which either did not cover the Community production cost or d!d
         not allow to make a reasonable profit. Import prices not only
         prevented the Community producer of price Increases which
         normally would have occurred, but obliged the Community
         producer to decrease Its prices In an attempt to hold Its sales
         and market share.
    b)   As to the Impact of the Imports on the situation of the
         Community producer, it was found that its capacity utilization
         remained, on average, during the last three years, at the very
          low level of 33 %. In addition, stocks cumulated and reached
         1200 tons in June 1989, equivalent to one year sales. Sales by
         Community producer in the Community decreased from 1209 tons In
         1987 to 402 tons on an extrapolated annual basis for 1989. This
         development   of   sales, compared     with    that   of  Community
         consumption, shows a Community producer's market share which
         decreased from 25.9 % In 1987 to 16 % during the first six
         months of 1989. The combined effects on suppression and
         depression of Community prices by Import prices have Increased
         losses Incurred by the Community producer which continues to be
         placed In a precarious financial situation. The continuous
         production shutdowns suffered by the Community producer on its
         potassium permanganate division put at risk the continuity of
         the employment concerned.
    c)   In the light of the trends of the relevant economic factors
         referred to above, It appears that the situation of the
         Community producer has been adversely affected. This is
         especially witnessed by a loss of profitability, sales and
         market share. In these circumstances it Is concluded that the
         Community Industry is sufferIng material Injury. -
10) There Is a clear parallei ism and simultaneity between the increase
    in volume of the dumped Imports originating In Czechoslovakia and
    the loss of market share and profitability of the Community
    producer. The price decrease of Imports from Czechoslovakia
    resulting from the violation of the undertaking had an Immediate
    effect on the Community producer as Indicated In point 9.3 above.
    The    Increase of    the Community     market   share    held   by   the
    Czechoslovakian Imports also corresponds, to a certain degree, to
    the decrease In the market presence of the Community producer.
 ---pagebreak---                                   - 3 -
11) The Commission has considered whether Injury has been caused by
    other factors such as changes In demand, a fall In exports by the
    Community producer to third countries or an Increase In Imports not
    subject to ant I-dumping measures. In this respect, although Injury
    may also have been caused by Imports originating in countries not
    concerned by the proceeding, these imports would only have
    contributed In part to the material Injury found and would not
    affect the Injurious Impact of dumped Imports originating in
    Czechoslovakia.
     In these circumstances, It can be concluded that the dumped Imports
    originating In Czechoslovakia In violation of the undertaking, have
    had a discernible and material Injurious Impact on the Community
     Industry.
12) Failure to adopt measures to eliminate the injury caused by the
    dumped Imports, would put at risk the Community Industry survival.
    The multiple, and sometimes strategic, uses of             potassium
    permanganate makes necessary for the Community to keep the sole
    remaining Community producer. The measures envisaged would have
    negligible effect on prices for users in the Community In respect
    of final products In which potassium permanganate Is Incorporated.
    On this basis, it Is concluded that It is In the Community interest
    that action should be taken to eliminate the injury caused and this
    action should take the form of a definitive antidumping duty.
13) The Commission determined the amount of the duty necessary to
    eliminate the Injury, to be 25.4 %. However, the elimination of the
    Injury at that level would Imply to exceed the margin of dumping
    found during the Investigation period. Consequently, the Injury can
    only be removed at a level not exceeding such dumping margin of
    19.6 %. Moreover, since the previous undertaking was breached, and
     in order to prevent increased dumping as well as Injury, through
    further decreases in export prices, it Is considered that the
    appropriate form of the duty to be Imposed would be that of a
    variable duty. Therefore, It Is concluded that the injury should be
    removed at the level of the dumping margin found, and that the
    amount of the definitive duty should be the amount by which the
    price, per kilogram net, free-at-Communlty-front1er, not cleared
    through customs, is less than 2.20 ECU.
14) In view of the findings on dumping and Injury resulting therefrom,
     It Is also considered that the amounts secured by way of
    provisional antidumping duty under Regulation (EEC) No 2535/89,
    should be definitively collected to the extent of the -amount of the
    duty definitively Imposed. Therefore, provisional antidumping
    duties collected or securities received for potassium permanganate
    which are not covered by the definitive antidumping duty, should be
    released.
 ---pagebreak---                                 Proposal for a
                           COUNCIL REGULATION (EEC)
            Imposing a definitive anti-dumping duty on Imports of
            potassium permanganate originating In Czechoslovakia
                 and definitively collecting the provisional
                  anti-dumping duty imposed on those Imports
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on
protection   against   dumped    or  subsidised   Imports  from  countries   not
members   of  the   European   Commun!tyC),    and  In particular    Article  12
thereof,
Having   regard    to  the   proposal   submitted   by  the   Commission   after
consultation within     the Advisory Committee as provided       for under   the
above Régulât Ion,
Whereas:
                             A. PREVIOUS PROCEDURE
(1)  Following a complaint      lodged by the European Council of Chemical
     Manufacturers' Federations (ECCMF) on behalf of a Community producer
     whose output represents the entire Community production of potassium
     permanganate, the Commission        published a notice    In the Official
                                               2
     Journal of the European Communities^ ) announcing the initiation of
     an ant I-dumping proceeding concerning imports Into the Community of
     potassium permanganate corresponding from 1 January T988 to CN code
     ex  2841 60 00 (TARIC code: 2841 60 00 *10) and originating              In
     Czechoslovakia,     the German    Democratic  Republic  and   the  People's
     Republic of China and commenced an investigation.
(1)  0J No L 209, 2.8.1988, p.1.
(2)  0J No C 63, 18.3.1986, p.5.
 ---pagebreak---                                      - 2 -
   (2) Following the Investigation which established the existence of
       dumping and Injury^3*, the Czechoslovak I an exporter, Chemapol
       Foreign Trade Co. Ltd, one exporter from the People's Republic of
       China and the exporter from the German Democratic Republic offered
       price undertakings.
   (3) Under the terms of the undertaking given by the Czechoslovak!an
       exporter, the abovementloned firm undertook to Increase Its export
       price by an amount considered sufficient to eliminate the Injury
       caused by dumping. This undertaking was accepted by the
       Commission^4).
                   B. BREACH OF THE UNDERTAKING AND REOPENING
                               OF THE PROCEEDING
   (4) The Commission, having received a request from the complainant to
        Investigate non-compliance with      the price undertaking, obtained
       evidence showing that potassium permanganate exported by Chemapol
       was again being imported Into the Community market at a very low
I      price, which indicated that the price undertaking was being
;      breached and resulted In material Injury to the Community producer,
*'     and decided^ 5 ), having heard the Czechoslovak I an exporter, to
r
;;     reopen the ant I-dumping proceeding concerning Imports of potassium
i      permanganate originating In Czechoslovakia.
-•                           C. PROVISIONAL ACTION
   (5) The Commission, on the basis of the price violation and the Injury
f      resulting therefrom, withdrew Its acceptance of the undertaking
*      given by the Czechoslovak I an exporter and imposed a provisional
è      anti-dumping d u t y W    on   Imports of the product concerned
*      originating In Czechoslovakia. That duty was extended for a
       maximum period of two months by Counci I Regulation (EEC) No 384A/89' .
   (3) Commission Regulation (EEC) No 2495/86, (OJ No L 127, 5.8.1986,
       p.12.).
   (4) Decision 86/589/EEC, (OJ No L 339, 2.12.1986, p. 32).
   (5) OJ No C 216, 22.8.1989, p.7.
   (6) OJ No L 245, 22.8.1989, p.5.
   (7) OJ No L 374, 22.12.1989, p.1.
 ---pagebreak---                                                                                       y-
                            D. SUBSEQUENT PROCEDURE
(6) The Commission officially Informed the exporter and Importers known
     to be concerned, the representatives of the exporting country and
     the Community producer of the reopening of the proceeding, and gave
     the parties concerned the opportunity to answer the questionnaires
    addressed    to them,    to make known      their   views   In writing     and to
    request a hearing.
(7) The Community producer and the Czechoslovak I an exporter returned the
    duly completed questionnaire to the Commission and made known their
    views    in   writing.    Only   four    importers     sent    replies    to  the
    Commission's questionnaire, while the rest either answered that they
    were not    concerned by the proceeding or,           In most    cases, did not
    reply at all.
    However, replies sent       by  the exporter      and   importers, which made
    themselves    known,   covered   only   a part     of   the   imports   Into  the
    Community   of potassium permanganate originating             in Czechoslovakia
    registered In the official Community statistics.            Therefore, dumping
    and the resulting Injury had to be determined on the basis of facts
    available, In accordance with Article 7 (7) (b) of Regulation
    (EEC) N° 2423/88. Thus, official statistics were used to fill the
    gap  shown,    in that    respect, by     imports   reported    In the    replies
    obtained from the exporter and Importers.
(8) Upon   request,    the   Community    producer     and    the   Czechoslovak I an
    exporter were informed of the essential facts and considerations on
    the basis of which it was intended to recommend the imposition of a
    definitive duty and the definitive collection of the amounts secured
    by way of a provisional duty. The Czechoslovak I an exporter was also
    granted   a   period   within   which     representations      could   be   made.
    Comments   made by    the Community     producer     and  the Czechoslovak I an
    exporter   were   considered   prior   to the Commission         finalising   Its
    conclusions.
 ---pagebreak---                                       - 4 -
 (9) The Commission sought and verified all information It deemed to be
     necessary    for  the   purposes  of   a  determination   and   carried  out
      Investigations on the premises of the following companies :
     (a) Community producer:
               Industrial Qulmlca del Nalôn S.A., Ovledo, Spain
     (b) Producer In the country of reference:
              Carus Chemical Company, Ottawa, Illinois, USA
     (c) Importers In the Community:
               Hachemie   -   Hamburger   Chemlsche    GmbH,   Hamburg,   Federal
               Republic of Germany
               Grlllo Chemlkallën GmbH, Dulsburg-Hamborn, Federal Republic
              of Germany
(10) The Commission's Investigation of dumping covered the period from 1
     July 1988 to 30 June 1989.
                        E. PRODUCT UNDER CONSIDERATION
(I)       DESCRIPTION OF THE PRODUCT
(11) The   product   which   Is subject   of  the   investigation   Is potassium
     permanganate and, at room temperature, appears as a crystal I ne solid
     of rombic shape with a dark purple metha I lie sheen. It Is a compound
     of manganese, potassium and oxygen whose manufacture requires two
     basic raw materials : pirolusite ore and caustic potash. By a two
     step manufacturing procedure       the raw materials are converted        by
     oxidation,    first   to  potassium   manganate   and   then  to   potassium
     permanganate.
(12) The product    is mainly available In three grades : Technical, Free-
     Flowing and Pharmaceutical. Technical        and Free-Flowing grades are
     interchangeable In all uses.
 ---pagebreak---                                          - o -                                        3
(I I)      LIKE PRODUCT
(13) The Commission     found that potassium permanganate produced             In the
      Community and that exported from Czechoslovakia are like products In
       all  essential   physical    and    technical   characteristics.      It  also
      verified   that  there are no such differences between            the product
      manufactured    in Czechoslovakia      and  that   produced   in   the   United
      States which    were   chosen    as  reference   country   (see   recitals   15
      and 16).
(14) The Council concludes that Czechoslovak!an Imports are like products
      to potassium permanganate produced In the Community and the United
      States.
                                     F. DUMPING
(15) In establishing the existence of dumped Imports from Czechoslovakia,
      the Commission had to take account of the fact that Czechoslovakia
       Is not  a market    economy    country   and  therefore   had   to base    Its
      calculations on the normal value of the product in a market economy
      country. For this purpose the complainant had suggested the choice
      of the United States as reference country.           Since for the previous
      proceeding   the  United    States had also      been  chosen   as   reference
      country, the Commission retained the : mplalnant's suggestion and
      considered that the basis for comparison should once again be the
      selling price of      the product     on  the  United   States market.      The
      Czechoslovak I an exporter did not oppose this choice.
(16) The Commission verified that in the United States there are no price
      controls and there      Is sufficient competition as a'result of the
      presence of substantial      imports from third countries; In addition,
      it was verified that prices charged by the US manufacturer on its
      domestic market are In a reasonable proportion to production costs
      and  allow  a profit     margin. Therefore»     the Council     confirms    the
      Commission's choice concerning the basis for determining the normal
      value.
 ---pagebreak---                                      - 6-
(17) Normal value was established on the basis of the comparable prices
     actually paid of payable      In the ordinary course of trade for the
      like product on the United States market.
(18) Sales   in the American market considered for calculation of normal
     value were made to independent customers, at a comparable         level of
     trade to export sales, at a profit and        in substantial quantities.
     The weighted average of the prices of these sales were therefore
     considered to be representative of those on the American domestic
     market.
(19) Export   prices were determined,      In general, on    the basis of   the
     prices actually paid or payable for the product sold for export to
     the Community.    However, for 24% of the exports taken into account,
     export   prices were based,     for  the reasons given     In recital  (7)
     above, on official Community statistics duly adjusted.
(20) In comparing normal     value with export prices the Commission       took
     account,    where   circumstances    permitted   and   where   there   was
     sufficient evidence, of differences affecting price comparability,
     in particular differences In quantities, delivery, payment terms and
     other selling expenses.      All comparisons were effectively made at
     ex-works level.
(21) These   comparisons   show  the   existence  of  dumped   exports  to  the
     Community during the Investigation period.       The margins of dumping,
     calculated C.I.F. at Community frontier, before customs duty, based
     on cash payment terms, vary according to the export transaction and
     the importing Member State, and have a weighted average of 19.6 %.
     The Council confirms this definitive dumping margin.
 ---pagebreak---                                     G. INJURY
(22) The evidence available to the Commission shows that imports Into the
     Community of potassium permanganate originating           in Czechoslovakia,
      In spite of the existing undertaking, rose from 131 tons In 1987 to
     384 tons In 1988, and amount to 166 tons on an extrapolated annual
     basis for 1989.     Consequently, the exporting country's share of the
     Community market     Increased from 3.3% In 1987 to 11.4% in 1988 and
     reached 6.6% during the first semester of 1989.           These Imports were
     concentrated on the markets of the Federal Republic of Germany and
     France, which alone account for 94% of the volume of             Imports from
     Czechoslovakia into the Community since 1987.
(23) Regarding prices of the Imports concerned, their            low level forced
     the Community producer to sell the product          In the Community market
     at   prices which    either   did  not   cover  on   average   the  Community
     producer   cost of production,      In Community    countries on which the
     imports concerned were present, or did not allow In other Community
     countries    to  make   a  reasonable    profit.   Import   prices  not   only
     prevented the Community producer of price Increases which normally
     would have ocurred, but obliged the Community producer to decrease
     its prices In an attempt to hold Its sales and market share.
(24) As   far  as   the  impact  of   the   Imports  on   the   situation  of   the
     Community   producer   Is concerned, account      had to be taken of the
     fol lowing factors:
     (a) The material     Injury suffered     by  the Community    producer   as a
          result of Imports originating In Czechoslovakia up to the end of
          1986, was initially alleviated by the price undertaking given by
          the Czechoslovak I an exporter at that time.
 ---pagebreak---                                        - 8 -
          However, afterwards, potassium permanganate originating in that
          country was released for free circulation             In the Community at
          prices   clearly     breaching   the   price    agreed.    Therefore,     the
          relief   of   the    Community    Industry    did    not   last.    Capacity
          utilization of the Community producer has remained, on average,
          during the last three years at the very            low level of 33%.       In
          addition, stocks cumulated and reached 1.200 tons in June 1989
          equivalent to one year sales.
      (b) Sales by the Community producer of potassium permanganate              In the
          Community decreased from 1209 tons In 1987 to 713 tons In 1988
          and to 402 tons on an extrapolated annual basis for 1989.                This
          pattern     of        sales,   compared     with     that    of    Community
          consumption, shows a market share held by the Community producer
          which decreased from 25.9 % In 1987 to 21.2 % in 1988 and to 16%
          during the first six months of 1989.
      (c) The combined effects of suppression and depression of Community
          prices   by   Import    prices  have    Increased     losses    Incurred   by
          Community producer which continues to be placed In a precarious
          financial situation.
      (d) Despite   the   continuous production      shutdowns     suffered     by  the
          potassium    permanganate    division    of    the   Community     producer,
          employment for the 33 people working in that division has, until
          now, been maintained through transferring these employees to other
          divisions    of   the   company   during    the    production     shutdowns.
          However,   should    the  degenerating    financial     situation    of   the
          potassium   permanganate operation       continue and not        be  rapidly
          Improved, It would put at risk the continuity of employment
          for t hose peop I e.
(25) In the light of the trends of the relevant economic factors referred
     to above, It appears that the situation of the Community producer
     has been adversely affected. This Is especially witnessed by a loss
     of profitability, sales and market share. In these circumstances, It
     is concluded     that   the Community     Industry     is suffering      material
     injury. The Council confirms this conclusion.
 ---pagebreak--- (26) As   far   as   the dumped     Imports originating      in Czechoslovakia     are
     concerned, there Is a clear parallelism and simultaneity between the
      increase     in   their   volume   and   the   loss    of   market    share  and
     profitability       of    the    Community     producer.       Since    potassium
     permanganate is a price-sensitive product, the price decrease of the
     Czechoslovak I an       Imports   resulting    from    the   violation    of   the
     undertaking had an        Immediate effect on the Community producer as
     shown    In recital     23 above. The     Increase of    the Community market
     share     held     by    Imports   originating      In    Czechoslovakia     also
     corresponds, to a certain degree, to the decrease                 in the market
     presence of the       Community producer.
(27) The Commission       has considered    whether   injury has been caused by
     other factors such as changes In demand, a fall               in exports by the
     Community producer to third countries or an increase In imports not
     subject to anti-dumping measures.
     Consumption of potassium pemanganate In the Community, decreased by
     nearly 40% when comparing consumption during the first semester of
     1989, extrapolated at an annual basis, to that                in 1987. However,
     this development In consumption could explain the decrease In sales
     of the Community producer but not the reduction of Its market share.
     Thus, In that period, while Imports from Czechoslovakia Increased by
     almost 27%, sales of the Community producer In the Community market
     decreased      distinctly     faster    than   Community      consumption,    and
     consequently      its market share and profitability           In the Community
     respectively decreased by 38% and 50%.
     Exports by       the Community    producer   to third     country    markets, in
     particular to the United States, has remained stable, In volume and
     value, since 1987, and, therefore, could not explain the Community
     producer's loss of profitability.
 ---pagebreak---                                 - 10 -
Regarding   imports not   subject  to either     ant I-dumping measures o
investigations,    since  1987, they    have   Increased   faster   than  the
Community   consumption   and  reached   a market    share of    54% on   the
Community market during the first semester of 1989. More than 90% of
this market share Is held by Imports from the United States, Taiwan
and Hong-Kong. As regards Imports from the United States they have
been made at prices far higher than those for the Czechoslovak I an
product and there is no evidence of dumping.
Concerning    Imports  from   Taiwan   and   Hong-Kong,     they  have   been
excluded   from  the present   proceeding    pending   the outcome of     the
Commission investigation, already In progress, concerning the origin
of these Imports. There are Indications, as potassium permanganate
Is not likely to be produced In these countries, that these Imports
may originate    In countries for which ant I-dumping measures are In
force.
Given   the  above,   Injury  may  also    have   been  caused   by   Imports
originating   In countries not concerned by the proceeding. However,
these  Imports would only have contributed        In part to the material
 Injury found and would not affect       the  injurious    Impact of dumped
imports originating In Czechoslovakia (see recital 26).
In these circumstances, It can be concluded that the dumped           imports
originating in Czechoslovakia in violation of the undertaking, have
had a discernible and material       Injurious    impact on the Community
Industry. The Council confirms this conclusion.
 ---pagebreak---                                         - 11 -
                                                                                    A
                               H. COMMUNITY INTEREST
(28) On   the  basis   of   the    serious   difficulties    facing  the  Community
     producer   concerned,      failure   to   adopt  measures   to  eliminate  the
      Injurious    effects      of    the    dumped     Imports    originating   In
     Czechoslovakia, would put at risk the Industry's survival, with the
     resulting    adverse    consequences     on   employment.   In  addition,  the
     multiple    uses     of     potassium     permanganate     In   environmental,
     agricultural and other, sometimes strategic fields, makes necessary
     for the Community       to keep the sole remaining Community         producer.
     Moreover, the measures envisaged would have a negligible effect on
     prices for users      in the Community      in respect of final products In
     which potassium permanganate Is incorporated.
(29) The Czechoslovak!an exporter, having been informed of the essential
     facts and considerations on the basis of which             It was Intended to
     recommend   the   imposition of a definitive duty, offered to keep in
     force the previous undertaking. However, given the breach of the
     undertaking,    its renewal     would not afford      the Community   producer
     sufficient   and reliable protection and would discriminate against
     exporters of the product concerned In other third countries honoring
     the undertakings given to the Commission.
     Therefore, the Council has come to the conclusion that It Is in the
     Community's    interest that action should be taken to eliminate the
     injury caused to the Community Industry directly concerned, and this
     action should take the form of a definitive ant I-dumping duty.
 ---pagebreak---                                          - \z -
                                 I. RATE OF THE DUTY
(30) Having taken     Into account, on the one hand, the ex-factory selling
     price   necessary     to provide      an   adequate    profit    to   the   Community
     producer    and,   on   the other      hand,    the   CIF   at-Community-frontier
     price,    before    customs     duty,     for    the    Imports    concerned,      the
     Commission determined the amount of the duty necessary to eliminate
     the   Injury   to be    25.4%. However,        the elimination       of   the   Injury
     through an increase of Import prices up to the level of such Injury
     threshold would Imply         exceeding the margin of dumping found during
     the   Investigation     period.     Consequently,      the    Injury   can   only   be
     removed at a level not exceeding the dumping margin of 19.6% (see
     recital 21). Moreover, since the previous undertaking was breached
     and In order to prevent Increased dumping as well as injury, through
     further    decreases     In   export    prices     It   is   considered     that   the
     appropriate    form of      the duty     to be    imposed would       be   that  of a
     variable    duty. Therefore,       the Council       concludes    that    the   Injury
     shall be removed at the level of the dumping margin found and that
     the amount of the definitive duty shall be the amount by which the
     price    , per kilogram net, free-at-Communlty-front1er, not cleared
     through customs, Is less than 2.20 ecus.
                     J. COLLECTION OF THE PROVISIONAL DUTY
(31) For the reasons set out in recitals (15) to (27) above, the Council
     also considers that the amounts secured by way of provisional anti-
     dumping duty under Regulation (EEC) No 2535/89should be definitively
     collected    to the extent       of   the amount      of   the duty     definitively
     Imposed.    Therefore, provisional          ant I-dumping    duties collected or
     securities received for potassium permanganate which are not covered
     by the definitive anti-dumping duty should be released.
 ---pagebreak---                                        -  ij -
                                                                                    M
i-'AS ADOPTED THIS REGULATION :
                                     ARTICLE 1
1.     A  definitive   anti-dumping   duty   is hereby   Imposed   on   Imports of
       potassium   permanganate   falling    within  CN  Code   ex   2841   60  00,
       originating In Czechoslovakia.
2.     The amount of the duty shall be equal to the amount by which the
       price,  per  kilogram   net,   free-at-Community-front1er,     not   cleared
       through customs, is less than 2.20 ecus.
       The  said   free-at-Community-front 1er    price,   not   cleared    through
       customs, shall be net    if the actual terms and conditions of sales
       provide that payment shall be made within 30 days of the date of
       dispatch; it shall be lowered by 1% for each month by which payment
       is actually deferred.
3.     The provisions In force concerning customs duties shall apply.
                                     ARTICLE 2
The    amounts  secured   by  way   of   provisional   anti-dumping    duty   under
Regulation    (EEC) No 2535/89 shall       be collected   to the extent     of  the
amount of the duty definitively Imposed.
The amounts collected or secured which are not covered by the definitive
duty shall be released.
 ---pagebreak---                                   - 14 -
                                ARTICLE 3
This Regulation shall enter Into force on the day following that of Its
publication In the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.
Done at Brussels                           For the Council
 ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(90) 38 final
                                                      DOCUMENTS
EN                                                                              11
                                 Catalogue number : CB-CO-90-041-EN-C
                                                             ISBN 92-77-57125-X
Office for Official Publications of the European Communities
L-2985 Luxembourg