CELEX: 51973PC0621
Language: en
Date: 1973-04-18
Title: PROPOSAL FOR A Regulation of the Council subjecting to authorization the importation into Italy of tape recorders from third countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 621
Vol. 1973/0124
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(73)621 final
                                                             Luxembourg 18 April 1973 »
                                  PROPOSAL FOR A
                            Regulation of "the Council
              subjecting to authoritization the importation into
              Italy of tape recorders from third countries
                  ( submitted to the Council by the Commission)
  COM ( 73)621 final
 ---pagebreak---                             EXPLANATORY MEMORANDUM
1.       Over the past few years imports of tape reoorders (OCT heading No
92.11 A III ) from third countries and in particular from Japan have increased
at an especially fast rate . As regards Italy in particular ( cf table in
Annex i ) these imports have increased from 99 000 in 1969 to 478 000 units
in 1972 which represents an average annual increase of 69 f°» During the same
period imports into this Member State from Japan have risen from 90 000 units
to 429 000 units ( average annual increase : 68 %) . During the last years , this
large increase in imports was accompanied by a reduction in Italian produc­
tion from 38O 000 units in 1969 to approximately 136 000 units in 1972 . The •
important increase in imports coming almost exclusively from the Par East to
supply the Italian market is evidenced by the increasing proportion of these
imports in the Italian domestic market ( imports + production - exports)
       - in 1969 13 % of the tape recorders purchased in Italy were imported
         from third countries (l6 fo were from Japan) ;
       - in 1972 this percentage rose to approximately 54 i° ( 48 % were from
         Japan) •
    • The Italian authorities have also indicated that imports from the main
supplier ( Japan) were being obtained at prices considerably lower than those
for similar products made in Italy or imported from other countries , in
particular from other Member States . In 1971 the average unit-price for
portable Japanese tape recorders was Lit . 5 990 , whereas for similar products
from a different origin ( the Netherlands and the Federal Republic 6f Germany
in particular), the average unit-price was Lit . 18 000 . In 1972: the Japanese
unit-price fell to Lit . 4 918 , whereas the price for Community products
was Lit , 16 000 . The situation as regards non–portable tape recorders is the
same .
                                                                         ./•
 ---pagebreak--- 2.     This trend has caused substantial injury to Italian producers of tape
recorders . In order to remedy this injury the Italian Government has had
several months of discussion with Japan , the main supplier , which in 1972 ,
accounted for almost all the imports from third countries . The purpose
of the discussions was to examine ways of alleviating the problems in the
Italian market , but no satisfactory solution was reached . In view of the
persistent increase in imports and of the accompanying continued fall in
Italian production , which poses serious social and regional problems for
several medium -size firms , the Italian Government asked the Commission by
telex on 9 March 1973 » to summon urgently the Advisory Committees set up
under Article 5 °f Regulation 1025/70 and of Regulation 109/70 . Following
upon this request a consultation meeting was held on 23 March 1973 . At
that meeting all the delegations agreed that substantial injury was being
caused to Italian producers , due to the increase in the imports under
consideration and to the conditions under which they were being imported
into the Italian market .
     The meeting also made it possible to examine the corresponding situation
in the other Member States . Total imports ( especially from Japan: of table
in Annex II ) accounted for a very high share of the domestic market in
several Member States . These Member States ( among them the Federal Republic
of Germany and the United Kingdom where Japanese tape recorders account for
over 50 % of the market ) have contended that no injury was being suffered ,
and contrasted the superior technical and financial conditions under which
their producers operate with those of Italian producers . Under GATT as
under Community rules , the existence or the threat of serious      injury
is a prerequisite to the adoption of safeguard    measures .
 ---pagebreak--- 3.      In the circumstances described above the Commission considered it
advisable and necessary , as a precautionary measure , to take the urgent
step of subjecting the importation into Italy of tape recorders to the
production of an import authorization pursuant to Article 10(l)(b) of
Regulation IO25/7O and Article 7 ( 3) of Regulation IO9/7O, (Regulation
(EEC) No 1060/73 of the Commission of     18,4.1973 ). The absence , at the present
time of serbus        injury       to         producers in other parts of the . ^
Community means that there are no grounds            for extending the same ,
measures "to the whole Community .
4«      In accordance with Article 5 ( 6 ) of Regulation 1025/70 and Article
7 (6) of Regulation IO9/7O, the Commission shall , within' ten days of the
entry into force of the urgent measure referred to above , submit to the
Council a proposal on the appropriate measures which require to be .taken.
The proposal for a Regulation at Annex III is therefore submitted to the
Council in accordance with those provisions .
5.      In view of the factors and of the reasons given above , the proposed
measures do not differ from those of the Regulation already adopted
provisionally by the Commission .      '   '
        Those measures , which apply only to Italy , provide that imports into
that Member State shall be restricted to an amount which would limit the
 injury now suffered and eliminate the threat of further injury . It is
therefore proposed to: establish a quota of 156 000 units for six months j
 from 1 April to the end of September 1973 ; this period will allow the
Commission to continue its detailed examination of the situation , and , if
necessary , recommend that further measures be taken.
                                                                           •/
 ---pagebreak---                                     - 4 -
         As regards the geographical field of application of the proposed
measures , it would not appear advisable to apply the Regulation to
one main supplier , although the imports from the country concerned amount
to approximately 90 i0 of the total number of imports from third countries
into Italy . In view of Article XIX of GATT it is indeed advisable to
adopt a non-discriminatory formula which would also include the countries
listed in Regulation 109/70 some of which are members of GATT . In view of the
nondiscriminatory nature         of the proposed measures it is also advi­
sable to take into consideration Article XXIV of the General Agreement as
regards free-trade areas and customs unions .
6.       The Commission reserves the right to propose , if necessary , the
amendment of the proposed measures , or their repeal when the
serious       injury has been eliminated , as a result , possibly , of an
understanding with the third countries concerned ; or the extension of
measures to other parts of the Community , or to the whole Community if
future trends in the imports in question should threaten to cause serious
injury        to other countries in the Common Market , or if the proposed
measure proved to be      inadequate to protect     the Italian industry .
7.       It is therefore proposed to the Council , within the time-limits
prescribed in Article 10 of Regulation 1025/70 » and Article 7 of Regulation
IO9/7O , that it should adorjt the proposal for a Regulation in Annex III
hereto .
                                                                       •/.
 ---pagebreak---                                                     Statistical data relating to combined,
                                                   sound recorders and reproducers in Italy
                                                         ( CCÏ heading ITo 92.11 A III )
                                                                                                           ( in units of 1 0C0 )
                                                         Rate of                      Rate of          Rate of       Average rate
                              1969          1970         increase        1971          increase 1972   increase       of increase
                                                         1969/70                       1970/71         1971/72      '   1969/ 72
                                                                                                                   ( arithmetical
  Total imports                300           377             26           507              34    616      61               40
  Imports from non-EEC
    countries
                                99           167             69           277              66    47B      73                69
I Imports from Japan            89           156             73           263              69    429      63'               68
I Total exports                119            85            -29            86               1     64 !   -26              - 18
  Exports to non-EEC                           8
    countries                   19                          -56   .         7  -          -13      8      14              - 18   -
                                                                                                               ' I
! Product ion                  3o0           345             -9           305             -12    136     -55              -25
  Share of total
    imports in the              18            26                           38                     54
   domestic market
  Share of imports
   from Japan in the            16            24                           36                     48
   clomestic market
      Production + Total imports - Total exports .
 ---pagebreak---                                                            ANNEXE II
          Share of imports from Japan in the domestic markets
             for combined, sound recorders and reproducers
                       (CCT heading No 92.11 A III )
                                    1969    1970     1971    1972
Germany                             29.2    39.4     59.2    70.3
Ireland                             41.3    47.1     47-2    46.8
( no production)
Denmark                             20.5    29.5     36.5    31.3
HaIj                                16.0    24.O '   36.0    48
United Kingdom                      21.8    34.6     47.4    53.3
France                               1.9     3.3      6.6     (7)
                                                                     /
 ---pagebreak---                                                            Annex III
              Draft Regulation (EEC ; No 1060/73 of the Council
              subjecting to authorization the importation into
                Italy of tape recorders from third countries
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Eoonomic Community j
Having regard to Council Regulation (EEC ) No 1025/70       of 25 May 1970 ,
establishing common rules for imports from third countries , and in particular
Article 10 thereof 5
Having regard to Council Regulation (EEC ) NO 109/70       of 19 December 1969 j
establishing common rules for imports from state-trading countries and , in
particular Article! 7 thereof ;
After consulation with the Advisory Committees set up under Article 5 °£
Regulation 1025/70 and of Regulation IO9/7O5
Having regard to the proposal from the Commission ;
Whereas , on 9 March 1973 » the Italian Government informed the Commission ,
tgr telex, of the increased difficulties in the Italian tape recorder market
caused ty the rising imports        of these products and requested the Commission
to summon urgently meetings for the consultations required under Regula­
tions IO25/70 and IO9/7O ;
Whereas , according to the information supplied by the Italian Government ,
particularly the information given at the consultation meetings , and to
other information available to the Commission , imports of tape recorders
                                                                      -A
( 1 ) OJ No L 124 , 8 June
( 2 ) OJ No L 19 , 26 January 1970
 ---pagebreak---                                      - 2 -
from third, countries to Italy have increased, considerably during the last
three years ; whereas this information dicloses that imports which amounted,
to 99 000 units in 1969 have increased, to 478 000 units in 1972 which
represents an average annual increase of 69
Whereas during the same period the annual Italian production of those
products has decreased from 380 000 to approximately 136 000 units ; and
the share of imports from third countries in the Italian domestic market
has increased continuously , rising from 18 $ in 1969 to approximately
54 1o in 19725
VJhereas those imports , especially those originating from a particular source ,
are obtained at relatively low prices , generally at a level considerably
lower than that prevailing on the Italian market ;
Whereas it is clear , from the facts given above , that tape recorders are
being imported into Italy in such greatly increased quantities and under
such conditions as to cause serious injury to Italian producers of like
products , and that the injury threatens to get worse and   would be difficult
to repair , •unless immediate action were taken in order to safeguard the
interests of the Community ;
Whereas , at the present time , the imports in question are being particularly
detrimental to Italy but are not so far causing the same injury to other
regions of the Community ; and it is consequently justifiable to limit the
protective measures to imports into Italy ;
Whereas discussions with the main supplier country for the purpose of
avoiding a deterioration of the situation in the Italian market have not
changed the trend of imports ;
 ---pagebreak---                                     - 3-
Whereas it is therefore necessary as regards the importation of those pro­
ducts into Italy to take interim protective measures consistent with the
relevant international rules j whereas these measures must limit those imports ,
and whereas , given the provisional and precautionary nature of the measures ,
the imports should he limited for a period not exceeding the time necessary
to enable consideration of the further measures which may be required ;
                /
Whereas the serious injury caused is due to the greatly increased quanti­
ties imported and to the price at which they are imported ; and it is there­
fore advisable to adopt provisionally a ceiling which would limit the injury
and eliminate the threat of further injury;
Whereas , dependent on future trends in imports of tape recorders "into the
Community markets ( including the Italian market ), the safeguard measures
under consideration might be amended ; or might be repealed when the serious
injury has been eliminated , as a result , possibly , of an understanding with
the third countries concerned ; or might be extended to other parts of the
Community , or to the whole Community if future trends in the imports in
question should threaten serious injury to other Community producers be­
sides the Italian producers ;
Whereas , in view of the necessity to take urgent measures , the Commission has
adopted , in accordance with Article 10 of Regulation IO25/7O and Article ^
of Regulation IO9/7O , a Regulation introducing a system of authorization -
for the importation of. tape recorders from third countries into Italy ;
and , in accordance with the provisions referred to above ,, it is desirable
that the appropriate measures should bo taken ;
 Regulation (EEC ) No 1060/73 of I8.4.I973
 ---pagebreak---                                      - 4 -
HAS ADOPTED THIS REGULATION :
                                                                                )
                                  Article 1
                                                                        i
1.     The importation from third countries into Italy of the products
listed 'below shall "be subject to the production of an import authorization ,
and shall not exceed , in respect of the period 1 April 1973 to 31 December
1973 the number of units given below i
CCT
heading
92.11 A III    Combined sound recorders and                   150 000 units
               reproducers
2.     Paragraph ( l ) shall not apply to products , imported into the Commu­
nity under an agreement establishing or providing for the establishment
of a customs union or a free-trade area between the Community and one or
more third countries .
3.     The import authorizations referred to in paragraph ( l ) shall be issued
by the Italian Republic .
                                 Article 2
       This Regulation shall enter into force on the day following 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 ,         19                       For the Council
                                                    The President