CELEX: 51992PC0452
Language: en
Date: 1992-10-30
Title: Proposal for a COUNCIL REGULATION (EEC) amending Council Regulation (EEC) No 1768/89 in respect of definitive antidumping duty on certain imports of video cassettes originating in Hong Kong

fer-
      COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(92) 452 final
                                             Brussels, 30 October 1992
                                 Proposal for a
                            COUNCIL REGULATION (EEC)
                   amending Council Regulation (EEC) No 1768/89
           In respect of definitive antidumping duty on certain Imports
                          of video cassettes originating
                                    In Hong Kong
K?*'^
                         (presented by the Commission)
 ---pagebreak---                                  _ > 4 «9- —
                          EXPLANATORY MEMORANDUM
(1) By Regulation (EEC) No 1768/89, the Council imposed a definitive
    anti-dumping duty of 21.9% on Imports of VHS video tape In cassettes
    originating in Hong Kong.
(2) By a notice published the 8 April 1992 the Commission initiated a
    review of the anti-dumping duty concerned as regards a Hong Kong
    company, Inter-Cassette (Hong Kong) Ltd.
(3) The investigation showed that Inter-Cassette (Hong Kong) Ltd had
    begun to export own produced video cassettes to the European
    Community after the entry into force of the above Regulation.
(4) Normal value was determined on the basis of the domestic price of
     the mode Is concerned. Export price was based on the actual price
    paid or payable for export. The dumping margin established was 1,4%.
(5) Such a dumping margin was considered as being de minimis in the
    original Council Regulation (EEC) No 1768/89 for Import of video
     tape on reels originating In the Republic of Korea.
(6)  In conclusion, It Is proposed that the Council amends Its Regulation
     (EEC) n* 1768/89 and exempts inter-Cassette (Hong Kong) Ltd from the
     definitive ant I-dumping duty Imposed on VHS video tapes In cassettes
     originating In Hong Kong.
 ---pagebreak---                                     - > -
                              Proposal for a
                         COUNCIL REGULATION (EEC)
               amending Council Regulation (EEC) No 1768/89
       In respect of definitive antidumping duty on certain Imports
                      of video cassettes originating
                                In Hong Kong
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 subsidized Imports from countries not
members of the European Economic Community^1*, and In particular
Article 14 thereof.
Having regard to the proposai submitted by the Commission after
consultation within the Advisory Committee as provided for under the
above Regulation,
Whereas:
                           I - PREVIOUS PROCEDURE
 (1) By Regulation (EEC) No 1768/89<2), as amended by Regulation (EEC)
     No 3522/90<3>, Regulation (EEC) No 1292/92<4> and Regulation (EEC)
     No 1769/92(5). the Council Imposed a definitive ant I-dumping duty
     of 21.9% on Imports of VHS video tape In cassettes (hereafter "video
      cassettes") falling within code ex 8523 1300 originating in Hong
     Kong, with the exception of Imports from several exporters
 (1) OJ no. L 209, 02.08.1988, p. 1.
 (2) OJ No L 174, 22.06.1989, p. 1.
 (3) 0J No L 343, 7.12.1990, p.1.
 (4) 0J No L 139, 22.5.1992, p.1.
 (5) 0J No L 182,2.7.1992, p.6.
 ---pagebreak---                                    - 2 -
     especially mentioned which were subject to a lesser rate of duty or
     exempt from duty.
(2)  In recital 43 of Regulation (EEC) N' 1768/89, concerning   Companies
     which started or will start exporting own-produced video cassettes
     to the Community after the Investigation period (newcomers), the
     Council noted that the Commission was ready to initiate without
     delay a review proceeding If the exporting company could show the
     Commission, and supply sufficient evidence, that It did not export
     the products concerned to the Community during the period of
     investigation.   The company also has to demonstrate that it started
     or will start those exports after the said period   and that It Is
     not related to or associated with any of the companies subject to
     the Investigation.
                                M - REVIEW
(3)  By a notice published on 8 April 1992(3), the Commission, after
     consultation with the Advisory Committee and In accordance with
     Article 14 of Regulation (EEC) No 2423/88 Initiated a review of
     Regulation (EEC) No 1768/89 as It concerned a Hong Kong company,
      Inter-Cassette (Hong Kong) Ltd. This company had submitted that It
     did not export the products subject to the ant I-dumping duty during
      the previous period of Investigation (1 January - 30 November 1987)
      but that they started such exports after the said period.   In
      addition, It submitted that It was not related with any of the
      companies subject to the previous Investigation for which dumping
      was found. Accordingly, the Commission commenced an Investigation In
      order to verify whether Inter-Cassette (Hong Kong) Ltd. could be
      considered as a newcomer and to establish a dumping margin, if any,
      for this company.
 (6)  0J No C 266 Of 12/10/1991, p. 7.
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                    III -  RESULTS OF THE INVESTIGATION
                                1. Newcomer
(4) The investigation showed that inter-Cassette (Hong Kong) Ltd began
     to export own-produced video cassettes to the Community after the
     previous Investigation period mentioned in recital 3.   In addition,
     It was found that this company had no link of any sort with the
     exporters Involved in the previous procedure and for which dumping
     was found.  The Council confirms that It should accordingly be
     considered as a newcomer and that a partial review of Regulation
     (CEE) No 1768/89 as It concerned inter-Cassette (Hong Kong) Ltd was
     warranted.
                              2. Normal value
(5) As Inter-Cassette (Hong Kong) Ltd did sell video cassettes on the
     domestic market In sufficient quantities during the investigation
     period for this review, and at prices which permitted recovery of
     all costs, normal value was determined on the basis of the weighted
     average domestic prices for the models exported to the Community.
                               3. Export price
 (6) Export prices were determined by the Commission on the basis of the
      prices, net of all rebates, actually paid or payable for the video
      cassettes sold for export by Inter-Cassette (Hong Kong) Ltd to the
      Community.  Indeed, since exports were made directly to Independent
      Importers In the Community, these export prices were found to be
      rellable.
      The Council confirms   this finding.
 ---pagebreak---                                   - 4-
                              4. comparison
(7) For the purpose of a fair comparison between normal value and export
    price, the Commission took account of differences affecting price
    comparability in accordance with Article 2 (9) and (10) of
    Regulation (EEC) No ?4rë3/88. All comparisons were made at ex-works
    level, at the same level of trade and, for the export price, on a
    transaction by transaction ba?i3.
    The examination of the facts shows the existence of dumping, the
    margin of dumping being equal to the amount by which normal value
    exceeds the price for export to the Community and, as expressed as a
    percentage of total c.l.f. value, was 1,4 X.
    The Council confirms the above findings.
                               5. Measures
(8) A dumping margin of 1,4% was considered as being de minimis In the
    original Council Regulation (EEC) No 1768/89 for imports of video
    tape on reels originating In the Republic of Korea.  The Commission
    sees no reason to depart from this appreciation In the present
    proceeding and the Council confirms this appreciation.   Therefore,
    the adoption of protective measures against Imports of video tape in
    cassettes manufactured by inter-Cassette (Hong Kong) Ltd. and
    originating In Hong Kong Is not Justified.
 ---pagebreak---                                    - 5 -
                 IV - AMENDMENT OF THE REVIEWED MEASURES
(9) Accordingly, the Commission considers that Regulation (EEC) No
     1768/89 should be amended and that Inter-Cassette (Hong Kong) Ltd be
     exempted from the definitive ant I-dumping duty Imposed on VHS video-
     tapes in cassettes originating in Hong Kong.
(10) The complainants were Informed of the considerations and main facts
     on the basis of which the Council Intented to amend Regulation (EEC)
     No 1768/89 and had no substantial comments to make.
(11) Since this review Is only limited to one Hong Kong producer, It does
     not affect the date on which the Council Regulation No 1768/89 In
     regard to Article 15 (1) of Regulation No 2423/88 will expire.
HAS ADOPTED THIS REGULATION :
                                 Article 1
The following paragraph is added to Article 1 (3) of Regulation (EEC)
No 1768/89 :
"The duty specified In paragraph 2 (b) shall not apply to models of video
tape In cassettes manufactured by inter-Cassette (Hong Kong) Ltd and
originating In Hong Kong   (additional Taric Code : 8292).
 ---pagebreak---                                   - 6-
                                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,
                                       For the CounclI,
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                                                              COM(92) 452 final
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