CELEX: 51983PC0506
Language: en
Date: 1983-07-27
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) accepting an undertaking given in connection with the anti- dumping review proceeding on imports of urea ammonium nitrate solution fertilsier (UAN) originating in the USA and terminating the proceeding (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 506
Vol. 1983/0196
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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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(83) 506 final
                                         Brussels, 27 July 1983
                     PROPOSAL FOR A COUNCIL REGULATION (EEC)
          accepting an undertaking given in connection with the anti-
         dumping review proceeding on imports of urea ammonium nitrate
        solution fertilsier (UAN) originating in the USA and terminating
                                  the proceeding
             (submitted to the Council by the Commission)
COM (83) 506 final
 ---pagebreak---                             EXPLANATORY MEMORANDUM
Since the submission of Proposal Com           (83) 459 the Commission has
r e c e i v e d a price undertaking from the exporter concerned which
it co nsiders acceptable.          The Anti-dumping Committee has been
c o n s u l t e d and only the French delegation was not in favour of
a c c e p t i n g the undertaking.
Accordingly, the Commission submits to the Council a modified
proposal to accept the price undertaking offered by Agrico Chemical
Company and close the proceeding.
 ---pagebreak---                                    Proposal for a
                                   COUNCIL REGULATION (EEC)
                     acce pti ng an undertaxing gi ve n in co n n e c t i o n with the a n t i ­
                     dump ing review pr oc eeding on imports of urea am m o n i u m ni t r a t e
                     solu tio n fertiliser (UAN) or i g i n a t i n g in the USA and te r m i n a t i n g
                     the proceeding
         THE COUN CIL OF THE EUROPEAN COMMUNITIES,
         Having r e g a r d to the Treaty e s ta bli sh ing the European Economic Community,
         Having re gard to Council Re gulation (EEC) No 3 0 1 7 / 7 9 of 20 December 1979
         on p r o t e c t i o n against dumped or s u b s idi ze d imports from c o u n tri es not
         m e m b e r s of the European C o m m u n i t y d ), as a m en ded by R e g u l a t i o n (EEC)
         No 15 8 0 / 8 2 ( 2 ) , and in pa rt icular Article 10 thereof,
          Having regard to the proposal submitted by the Commission
          after c o ns ult at ion s within the Advisory Comm itt ee as p r o v i d e d for under
         the above Regulation,
         Wher eas ,
   A.   Provisional action
1. The Commission, by Regulation (EEC) No 290/83 (3), imposed a provisional anti­
   dumping duty on urea ammonium nitrate solution f e r t i l i s e r (UAN) originating in the            us|\.
   That duty was extended for a maximum period of two months by
   Regulation (EEC) No1368/83(4) at the request of the exporter
                   concerned.
   B.   Subsequent procedures
2-   Following the imposition of the provisional anti-dumping duty the
                  and
    exporter /certain. /Community producers concerned requested, and
    were granted, an opportunity to be heard by the Commission .
   The exporter                      s                                also made written
    submissions making known its views on the duty .
    (1) 0J No L 339, 31.12.1979, p. 1.
    (2) 0J No L 178,· 22.6.1982, p. 9.
    (3) 0J No L 33, A.2.1963, p. 9.
    (A) 0J No L 1 ACf, 31.5.1983, p. 21.
 ---pagebreak---                                                - 2 -
        The exporter concerned further requested to be informed of certain
        facts and essential considerations on the basis of which it was
         intended to recommend definitive action and this request was granted.
        C.      Dumping
    3. For the imposition of the provisional duty the Commission, in arriving
        at the most appropriate level at which to make the comparison between
        normal value and export prices, took account of^the fact that Agrico
        supp lie d almost all its               domestic customers ex -terminal;      these storage
                                            /■
        terminals are situated in areas of high consumption and are supplied
       mostly by direct pipeline from the manufac tu rin g                  plant and also by
       barge or truck.              The Commission, in its provisional determination
        considered, that the costs of operating these terminals were, by nature,
       ov erheads and accordingly no allowance could be ma de for these costs.
   4 . The exporter, Agrico, co ntested this d e te rmi na tio n and submitted further
       evidence in support of its argument that certain                      of these costs were
       tr eated by the company as variable and t h a t , i n any event, a direct relationship
■jn    terms of Article 2 (10) (c) of Regulation (EEC) No 3017 /79 existed b e t w e e n all
       the costs of the terminal and the sales under consideration.
   5 . In its          defi nit iv e d e te rmi na tio n the Commission took the view that,
       since such costs were incurred prior to the                           sale to purchasers
      on the domestic market, 0 r would have been incurred whether or not any
       p a r t i c u l a r sale was made, no         direct re lationship between these
       costs and these sales could be es t a b l i s h e d and accordingly no allowance
       could be made;
  6 . Al lowance was, however, made for the cost of t r an spo rt ing the product to
      the terminal, a similar de duction being ma d e in the case of export sales
      for the cost of transport from the plant to an f.o.b. level.
  7 . Account was                 t a k e n of           differences in t h e t erm s and c o n d i t i o n s
 ---pagebreak---                                                     - 3 -
         of sale, namely credit terms and s a l e sme n' s salaries , and
         0 f differences in the co n c e n t r a t i o n of n i t r o g e n in the prod uct in
          question; a number of expenses which Ag r i c o c l a i m e d as a n c i l l a r y to
          salesmen's salaries were not de d u c t e d since no d i re ct r e la tio ns hip
          between these expenses and the sales under c o n s i d e r a t i o n was e s t a b l i s h e d , in
additioi no a l l o wan ce was made for q u a n t i t y d i f f e r e n c e s cl a i m e d by Ag r i c o since these
claims cid not fall into any of the c a t e gor ie s sp e c i f i e d in A r ti cle 2(10) b) of Regulation
(EEC) No 3017/79.
•   8. The e x po rte r also s u b m i t t e d ev i d e n c e ’ rela tin g to t r a n spo rt costs to the
          Community frontier which has led the C o m m iss io n to adjust the w e i g h t e d
          average dumping m a r g i n e x p r e s s e d as a p e r c e n t a g e of the c.i.f. C o m m uni ty
          frontier price to 3.9%.
          D.      Injury
      9.  No fresh evidence regarding injury to the C o m m u n i t y industry has been
           submitted, the Co mm ission has t h e r efo re co n f i r m e d the c o n c l us io ns on
           injury reached in R e g u lat io n (EEC) No 290/ 83.
     10.   In the Co mmission's view, th e r e f o r e , the facts as f i na lly d e t e r m i n e d
           show that the injury being caused by d u m p e d imports of UAN
           origina ti ng in the U.S.A., ta ke n in isol ati on f r o m that ca used by
           other factors, has to be c o n s i d e r e d as m a t e ria l.
           E.      Community Interest
     11.   Although no r e p r ese nt ati on s have been re c e i v e d by the Co m m i s s i o n from
            consumers in the Community, importers to the Co m m u n i t y have argued that
            the in troduction of p r o t e c t i v e m e as ure s would s i g n i f i c antly increase
            costs in the ag ricultural indu str y and t h e r e f o r e not be in the Co m m u n i t y ' s
            interests; however, the Co mm iss io n cons ide rs that the in terests of the
            Community are not             s e rv ed   in the long term by a C o m m uni ty indu str y
            weakened or reduced by pe r s i s t e n t d u mp ing and in vi ew of the p a r t i c u l a r l y
                                                                                 /
            serious d i ff icu lt ies facing the Comm uni ty indu str y and the rela tiv el y
             low in c i d e n c e of a pr ic e increase on the costs of the a g r i c ul tu ral
             in d u s t r y conc ern ed , the Commission has, however, come to the c o n c lus io n
            th at it is in the Community's interests that action be taken.
 ---pagebreak---                                             - 4 -
   F.     Un de rta ki ng
   12
      '   The expo rte r concerned was informed of the main findings of the
          i n v e s t i g a t i o n and commented on them. An undertaking was
          s u b s e q u e n t l y offered by Agrico concerning their exports of UAN
          to the Community.
          The effect of the said undertakings will be to increase export prices
          to the Community to the level necessary to eliminate the dumping.
          This increase does not exceed the dumping margin found in the
          in ve stigation.
          However, during the consultations within the Advisory Committee c o nc ern­
          ing the accepta bi lit y of this undertaking, one de le gation objected to
the t e r m i n a t i o n of the proceeding on the basis of acceptance of this undertaking.
          The Comm iss io n has consequently submitted a proposal to the Council
          to t e r m ina te the pr oceeding on the basis of the acceptance of the
          u n d e r t a k i n g offered.
    G.   E x is tin g definitive duty
    13. This Decision does not affect the continued application of the
         d e f i n i t i v e anti-dumping duties on imports of UAN or ig ina ti ng in the
         USA imposed by Regulation (EEC) No 349/81(5) since the Commission has
         r e c e i v e d no evidence to alter its view that such continued application
         is a requirement for the elimination of injury and the pr ev ention
         o f its recurrence.
         HAS        AD O P T E D THIS REGULATION:
5 0J  No L 39, 12.2.1981, p. 4.
 ---pagebreak---                                   - 5 -
                                Article 1
The Co mmission hereby accepts the u n d e rta ki ng g i v e n by
Agrico Chemical Company in connection with the a n ti -du mp ing
re v i e w pr o c e e d i n g concerning urea am m o n i u m n i t r a t e s o lu tio n
f e r t ili ze r falling within Common Customs Tariff s u b h ead in g
ex 31.02 C and corresponding to NI ME XE code ex 31 . 0 2 - 9 0
o r i g i n a t i n g in the United States of America.
                                Article 2
The an ti -du mp ing review proc eed in g co nc erning imports of urea
a m m o n i u m nitr ate solution fertilizer o r i g i n a t i n g .in the
Un it ed States of America is hereby te rm ina te d.
Done at Brussels, 27 July 1983                                      For the Commission