CELEX: 51979PC0779
Language: en
Date: 1979-12-31
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON LITHIUM HYDROXIDE ORIGINATING IN THE UNITED STATES OF AMERICA AND THE SOVIET UNION (proposed by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 779
Vol. 1979/0256
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(79)779 final
                                             Brussels . 31 st December 1979
                  PROPOSAL FOR A COUNCIL REGULATION ( EEC )
                IMPOSING A DEFINITIVE ANTI-DUMPING  DUTY ON
                   LITHIUM HYDROXIDE ORIGINATING IN THE
               UNITED STATES OF AMERICA AND THE SOVIET UNION
                (proposed by the Commission to the Council )
                          g? V                M
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                           \ /A      tJ?       /
                                      « i't
COM ( 79 ) 779 final
 ---pagebreak---                            EXPLANATORY MEMORANDUM
The Commission , by Regulation ( EEC ) N° 2391 /79 of 26 October 1979 , imposed
a provisional anti-dumping duty on lithium hydroxide originating in the
United States of America and the Soviet Union .        This Regulation applies
until the entry into force of an Act of the Council adopting definitive
measures or , at the latest , until the expiry of a period of three months
beginning on 31 October 1979 .
A month before the expiry of this time limit the Commission , pursuant to
                                                  (1 )
the anti-dumping Regulation ( EEC )                    , should submit to the
Council a proposal relating to the adoption of definitive measures .
Since the imposition of the duty , the Commission 's services have continued
their examination of the facts in co-operation with the Member States .
This examinatipfj has enabled the Commission to gather further information ,
supported by proof of the " normal value " of this product and of the
American and Russian export prices .                                        . .
The facts as finally established show that there is dumping and injury
and that the amounts secured by way of provisional duty should be
definitively collected .      These facts also show that the normal value
established for the purposes of the provisional duty has since increased
and this increase must be taken into account when determining the
definitive duty .
In these circumstances , the Commission submits the attached proposal for
a Council Regulation imposing a definitive anti-dumping duty on lithium
hydroxide originating in the United States of America and the Soviet Union
and providing for the definitive collection of the amounts secured by
way of provisional duty .
 ( 1 ) To be inserted once new regulation is published ( former Regulation
       ( EEC ) 459 / 68 ).
 ---pagebreak---                          PROPOSAL FOR
                    COUNCIL REGULATION ( EEC )
imposing a definitive anti-dumping duty on Lithium hydroxide originating
in the United States of America and the Soviet Union
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
                                                                             (*)
Having regard to -Council Regulation ( EEC ) N°             of
on protection against dumped or subsidized imports from countries which are
                                                  (1)
not members of the European Economic Community        ,
Having regard to the proposal submitted by the Commission after consultation
within the Advisory Committee " set up under Article 6 of Regulation ( EEC )
Whereas in ; February 1979 the Commission received a complaint submitted by
CEFIC , the European Council of Chemical Industry Federations, on behalf
of Metal Igesel Ischaft AG , Frankfurt , the sole Community producer of
lithium hydroxide , setting out evidence as to the existence of dumping of
the like product originating in the United States of America and the
Soviet Union and of material injury resulting therefrom;
Whereas , since the information received indicated that the complaint was
admissible and that defensive measures against dumping might be necessary ,
the Commission officially notified the importers and exporters known to .
be concerned , and published in the Official Journal of the European
Communities of 19 May 1979 a notice of the initiation of an anti-dumping
procedure concerning imports of lithium hydroxide originating in the
United States of America and the Soviet Union ^;
 (*) NB New Counci I " regulation not yet published .
 ( 1 ) OJ N° L
 ( 2 ) OJ N° C 126 , 19.05.1979 , p.  2
 ---pagebreak--- Whereas , for the purposes of a preliminary determination of the     dumping margin
and of injury , the Commission made an on the spot investigation of the two
American producers , Foote Mineral Company , Exton , Pennsylvania , and Lithium -
Corporation of America , Gastonia ^ North Carolina , of the Community producer ,
and of a Community importer whose operations required similar investigation ;
whereas'an on the spot investigation of another importer proved impossible
owing to his refusal to permit it ;       .
Whereas , for the preliminary examination of dumping by American producers , the
Commission compared their export prices to the Community with those ruling on
the American market ;
Whereas weighted averages were used for these comparisons , which were made at
the ex-factory level for sales over the period 1 January 1979 to*30 April 1979 ,
account being taken ,- insofar as this was requested , of differences in the con­
ditions of sale having a direct relationship with the sales under consideration ,
that is to say those relating to transport costs 'and selling expenses ; whereas
the amount of the selling expenses was determined by reference to the costs in­
*
curred by the seller ;    whereas , in the absence of sufficient evidence in support
of Lithium Corporation 's claim that there were absolutely no selling expenses
     >                                                                *
on exports to the Community , the breakdown of these costs was based on the avail
able accounting data , allocated proportionately to the turnover for each product
and market under consideration ;     whereas the exporter in question requested in
addition a supplementary adjustmen%>for certain overheads and administrative
expenses ;  whereas , in the absence of sufficient proof as to the direct relation
ship of these overheads with the sales under consideration , the Commission was
not able to take this request into account ;                     "*
Whereas , when determining the existence of dumping on imports from the Soviet
Union , the Commission had to take account of the fact that the Soviet Union is
a non-market economy country ;
   m
Whereas , for this reason , -the- Commission has based its preliminary dumping
calculations on the prices . at which the like product is sold for consumption
on the domestic market of a market economy third country ;
Whereas a comparison with prices at which the like product is sold for con­
sumption on the domestic market of the United - States of America - adjusted to
take inito account differences in conditions and circumstances of sale appeared
to be appropriate and not unreasonable since      the United States is the only
market economy non-member country producing^and exporting this product in
 substantial quantities ;         -                           •
 ---pagebreak---                                      - 3 -
 Whereas , with regard to injury to the industry concerned , the evidence
         during the preliminary examination
 available to the Commission/snowed that imports into the Community of
 lithium hydroxide originating in the United States of America and the
 Soviet Union had        increased from 988 tonnes in 1976 to 1 237 tonnes in
 1978 ;
  whereas the imports into the Community of the product in question reached a
  market share of 58% in 1976 and 62% in 1978 and were consequently having a
  considerable effect ;                                  ■
'Whereas the prices of these imports on the Community markets had               been
 extremely low , thus exercising a depressive effect , on the Community
 producer 's prices , obliging it to sell . at prices below its costs of
 production ;                                                  •        ,            .
 Whereas this development had taken place to the detriment of this producer ,
 placing it in an extremely difficult situation and causing it heavy
 losses on this product ; whereas, in the absence of defensive measures , the
 cessation of this line of production was envisaged, which woulclf involved
 a reduction in personnel ;
       ,                           considered to be
 Whereas the dumped imports were'manif est ly the principal cause of the
 difficulties described above ;
                                               - €2
                   thi s                     .     .
 Whereas , since / preliminary examination of the matter showed that there was
 dumping , that there was sufficient evidence of injury, and that the
 interests of the Community called for immediate intervention , the
                                                     (1 )
 Commission , by Regulation ( EEC ) N° 2391 / 79          , imposed a provisional anti-
 dumping duty on lithium hydroxide originating in the United States of
 America and the Soviet Union ;                                               •
 Whereas , in the course of the subsequent examination of the matter ,             >
 completed after the imposition of the provisional anti-dumping duty , the
 Commission gave interested parties the opportunity to make known their
                 •        ,   , ..    . .    . , . who . so. requested,.,
 views in writing , heard the interested parties' ana gave the parties
 directly concerned^?he e§ppo£funity orally to develop their views ;
  ( 1 ) OJ N° L 274 , 31.10.1979 , p. 26
 ---pagebreak---  Whereas during the subsequent examination it was determined that the
 domestic price in the United States of America on which: the determination
 of normal value is based has increased by 9.3% since the date of the
 preliminary determination of the dumping margin; whereas in consequence , .
 for the definitive determination, it is necessary to adjust the normal value
on which the provisional duty was based by this amount in order to take
 account of , the increase in the domestic US price ;                       1-
 Whereas^with regard to all of the other elements affecting the dumping
 calculations , no new information was received nor further arguments
 advanced " whi ch would have altered the calculations ; whereas consequently
 the current dumping margins are 9.6% for Lithium Corporation of America ,
6.8% for Foote Mineral Company and 8.9% for Russian exports ;             -
 Whereas in the course of the subsequent examination of injury it was determined
 that imports into the Community of lithium hydroxide originating in the
                                                                                 /
 United States of America and the Soviet Union had reached a level of
 632 tonnes during the first six months of .1979 ; whereas the imports-
 concerned reached a market share of 65% during the same period and are
 consequently having an even greater effect on the market than that
 determined during the preliminary examination ;                 '
                     V                 ■ ;            •
 Whereas the prices of these imports into the Community continue to exercise
 a depressive effect on the Community producer 's prices , obliging it to      *
 continue to sell at prices below its costs of production ;           •'
 Whereas, with regard to all the other elements affecting the determination of
  injury ,        no new information was received nor . further arguments advanced
 which could have altered that determination ;
 Whereas , therefore , the facts as finally established show that , due
 consideration having been given to the other factors having a bearing on
 the situation of this industry , as , for example , the decline of exports to
 countries outside the Community / the dumped imports are causing and
 threatening to cause material injury to the Community production concerned ;
 ---pagebreak---                               - 5 -
Whereas /in these circumstances , protection of the Community 's interests
calls for the definitive collection of the amounts secured by way of
provisional duty in respect of lithium hydroxide originating in the
United States of America and the Soviet Union - and for the imposition of a
definitive anti-dumping duty ; whereas the amount of this duty should
correspond to the amount by which import prices into the Community fall-
below the lowest normal value for the exporters involved adjusted to a
free-Community- frontier basis ;
Whereas , in order to avoid evasion of the anti-dumping duty , it is necessary
to provide that where lithium hydroxide is not entered for consumption by
the first purchaser -in the Community there is an alternative procedure for
the calculation of the duty ;
Whereas one of the American exporters , Foote Mineral Company , voluntarily
undertook , prior to the imposition of the provisional duty , to increase its
prices to levels which were considered satisfactory ; whereas this under­
taking was accepted by the Commi ssion,whi ch accordingly decided to -
terminate the procedure concerning this company and to exclude it from
the application of the provisional duty ; whereas this same company has meanwhile
offered to bring its undertaking into line with the latest . price level on
the American market ; whereas this new undertaking has been accepted by the
 Commission and consequently this company remains excluded from the
application of the duty ,
HAS ADOPTED THIS REGULATION :
                             Article 1
 1.   A definitive anti-dumping duty is hereby imposed on lithium hydroxide
 falling within Common Customs Tariff subheading 28.28 B and corresponding
 to NIMEXE code 28.28-10 , originating in the United States of America and
 the Soviet Union .  This duty shall not apply to lithium hydroxide
 manufactured and exported by Foote Mineral Company , USA .
 The provisions in force concerning customs - duties shall apply to this
duty .  .
 ---pagebreak---                                 - 6 -
2.     Without prejudice to paragraph 5 below the amount of this duty shall
                                                                        t
 correspond to th ^ difference between the normal value as defined in
paragraph 3 and the free- Community- f fontier price , before duty , to the
first purchaser .
3.      For the purposes of this Regulation , the normal value of lithium
 hydroxide originating in the United States of America and the Soviet Union ,
adjusted       to a free-Community frontier basis , before duty , shall be .
 US21 . 59 per lb .
 4.    The adjusted normal value as referred to in the preceding paragraph shall be
net if the conditions* of sale provide for payment within 30 days from the end of
the month of delivery ;     it shall be increased by 1% for each month by which the
period for payment is increased and re.duced by 1% for each month by which that
period is reduced .         , ,                         -
      «  -                   *
                                                 • »
 5 . a ) Where the product defined in paragraph 1 above is not entered for
 consumption by the first purchaser in the Community , the definitive anti-
                                                   A      .       ,
dumping duty shall be at the following rates :
- 9.6% for imports originating in "the United States of America , .
- 8.9% for imports originating in the Soviet Union .
These rates shall be' applied to the      purchase price of the purchaser      •
 concerned , customs duties not included .
     b ) Where the declarant can provide satisfactory proof to the competent
 customs authorities that the normal value as defined in paragraph 3 above
 either is lower than the price to the first purchaser in the Community by less
than 9.6% in the case of imports from the United States or 8.9% in the case of
 imports from the Soviet Union , or exceeds the price to the first purchaser in the
 Community by less than 9 . 6% , in the case of imports from the United States or 8.9%
 in the case of imports from the Soviet Union , the amount of duty shall be limited
 to the difference calculated on this lesser amount .
 ---pagebreak---                             Article 2
The amounts secured by way of provisional duty under Regulation ( EEC )
N° 2391 / 79 shall be definitively collected .
                            Article 3                            '
This Regulation shall enter into force on the day of its publication in
the Official Journal of the European Communities .
                                                             .1
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels /                               For the Council
                                                 The President