CELEX: 51993PC0429
Language: en
Date: 1993-09-28
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of certain electronic weighing scales originating in Singapore and the Republic of Korea

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(93) 429 final
                                          Brussels, 28 September 1993
                           Proposal for a
                COUNCIL REGULATION (EEC)
      imposing a definitive anti-dumping duty on imports of
          certain electronic weighing scales originating
             in Singapore and the Republic of Korea
                  (presented by the Commission)
 ---pagebreak---                            EXPLANATORY MEMORANDUM
1. By Regulation (EEC) No 1103/93, published in Official Journal No L 112 of 6 May 1993,
   the Commission imposed a provisional anti-dumping duty on imports of certain electronic
   weighing scales originating in Singapore and the Republic of Korea.
2. The provisional anti-dumping duty was extended for a maximum period of two months by
   Council Regulation (EEC) No 1967/93.
   In the meantime the Commission has completed its investigation for the determination of
   definitive measures.
3. For the purpose of definitive findings, normal value and export price were established on
   the basis of the same methods as those used in the provisional determination of dumping,
   after taking into consideration certain calculation adjustments submitted by the parties.
    The comparison between normal value and export prices to the Community showed
    definitive dumping margins for the Korean and Singaporean producers ranging from 7.2%
    to 31%.
4.  As far as determination and causation of injury is concerned, no new facts concerning these
    findings were subsequently put forward in this connection.
5.  With respect to Community interest, no new arguments other from those set out in the
    Commission Regulation were put forward.
6.  Provisional measures took the form of anti-dumping duties; these were imposed for all
    producers at the level of the dumping margins established since the level to remove injury
    was much higher. No new arguments were put forward to contradict this approach.
    Accordingly, the following definitive duties should be imposed:
    Han Instrumentation Technology Co. Ltd., Seoul                     7.2%
    Cas Corporation, Seoul                                            9.3%
    Teraoka Weigh-System PTE Ltd., Singapore                          10.8%
    Descom Scales Manufacturing Co. Ltd., Seoul                      26.7%
 ---pagebreak--- In the case of companies which failed to cooperate, a duty of 31% for Singapore and of
26.7% for Korea is proposed, calculated as set out in the provisional Regulation, in order
to avoid a bonus for non-cooperation being constituted and to prevent circumvention of the
anti-dumping measures.
 ---pagebreak---                                          Proposal for a
                               COUNCIL REGULATION (EEC)
                    imposing a definitive anti-dumping duty on imports of
                        certain electronic weighing scales originating
                            in Singapore and the Republic of Korea
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to die 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(,), and in particular Article 12 thereof,
Having regard to the Commission proposal, submitted after consultation within the Advisory
Committee as provided for under the above Regulation,
Whereas:
(I)
      OJNoL209, 2.8.1988, p. 1
 ---pagebreak--- A.  PROVISIONAL MEASURES
(1) By Regulation (EEC) No 1103/93(2), the Commission imposed a provisional anti-dumping
    duty on imports into the Community of retail electronic weighing scales (hereinafter
    referred to as "R.E.W.S.") originating in Singapore and the Republic of Korea (hereinafter
    Korea) and falling within CN code 8423 81 50. The provisional anti-dumping duty was
    extended for a maximum period of two months by Council Regulation (EEC)
    No 1967/93(3).
B.  SUBSEQUENT PROCEDURE
(2) Following the imposition of the provisional anti-dumping duty, the cooperating Singaporean
    producer requested and was granted an opportunity to be heard by the Commission and
    made its views known in writing, as did two of the Korean producers concerned.
(3) The Commission continued to seek and verify all information it deemed to be necessary
    for its definitive findings. The parties were informed of the essential facts and
    considerations on the basis of which it was intended to recommend the imposition of
    definitive anti-dumping duties and the definitive collection of the amounts secured by way
    of a provisional duty. They were also granted a period within which to make
    representations subsequent to these disclosures. Their representations were considered and,
    where appropriate, the Commission's findings were modified to take account of them.
C   DUMPING
 1   Normal yajue
(4) For the purpose of definitive findings, normal value was established on the basis of the
    same methods as those used in the provisional determination of dumping. Certain
    calculation adjustments were made on the basis of submissions by the parties.
(2)
    OJNoL 112, 6.5.1993, p. 20.
(3)
    OJNoL 179, 22.7.1993, p. 1.
 ---pagebreak--- 2.   Export prices
(5)  One Korean producer which sold to its parent in Japan which in turn sold to its related
     company in the Community continued to contest the Commission's position that the export
     price was unreliable and should, therefore, be constructed in accordance with Article 2(8)(b)
     of Regulation (EEC) No 2423/88. It argued that, in its case, the price of its related
     company in the Community to unrelated customers should be considered to be the price
     payable for the product sold for export to the Community, within the meaning of
     Article 2(8Xa) of Regulation (EEC) No 2423/88, that the related company in the
     Community did not perform the functions of an importer and that the questionnaire
     addressed by the Commission to that company had thus received no reply.
(6)  However, the Commission came to the conclusion that this price could not be regarded as
     the price mentioned in Article 2(8Xa) of Regulation (EEC) No 2423/88, since it became
     clear, from the limited information made available to the Commission, mat the related
     company in the Community was concerned with sales to unrelated customers by virtue of
     processing orders, performing marketing functions, invoicing these customers in the
     Community and receiving payment.
     This related company therefore incurred costs normally borne by an importer. In these
     circumstances, the export price was constructed on the basis of the price to the first
      independent buyer, as provided for in Article 2(8)(b) of Regulation (EEC) No 2423/88.
      Consequently, the price actually paid to the related company in the Community by the first
      independent customer was adjusted by the costs of this related company, established
      according to Article 7(7)(b) of Regulation (EEC) No 2423/88, on the basis of the
      abovementioned information, and a reasonable profit of 5% as set out in recital (18) of
      Regulation (EEC) No 1103/93.
 (7)  The Council confirms the findings and conclusions of the Commission on export prices as
       set out in recitals (13), (14), (17), (18) and (24) of Regulation (EEC) No 1103/93, on the
       content of which there was made no substantial comment by the three remaining producers.
 ---pagebreak--- 3.    Comparison
(8)   One exporter claimed additional adjustments on normal value for warranty or guarantee
      terms, as well as adjustments for physical characteristics and sales staff salaries, but was
      not in a position to link the costs directly to the particular sales transactions regarding the
      product under consideration. The claim was consequently rejected by the Commission.
(9)   For one exporting producer, normal value was reduced by an allowance corresponding to
      import charges borne on materials physically incorporated in the like product when destined
      for domestic consumption and refunded when exported to the Community, as mis claim
      was substantiated.
(10)  The findings and conclusions set out in recitals (14) and (24) of Regulation (EEC)
      No 1103/93 are also confirmed.
4-    Dumping margins
(11)  The definitive examination of the facts showed the existence of dumping in respect of
      imports of the product concerned originating in Korea and Singapore.
( 12)  The weighted average dumping margin definitively established for Teraoka Weigh-System
      PTE Ltd., Singapore, and expressed as a percentage of the free-at-Community-frontier value
      of imports, duty unpaid, is 10.8%.
(13)  The weighted average dumping margins definitively established for each Korean producer
       concerned and expressed as a percentage of the free-at-Community-frontier value of
      imports, duty unpaid, are as follows:
            Cas Corporation                                                 9.3%
            Han Instrumentation Technology Co. Ltd.                         7.2%
            Descom Scales Manufacturing Co. Ltd.                           26.7%
(14)   In the case of companies which failed to cooperate in the investigation, the Council
      confirms the Commission's position as set out in recitals (16) and (28) of Regulation (EEC)
       No 1103/93. Consequently, the definitive dumping margin for non-cooperating companies
      should amount to 26.7% for Korea and 31% for Singapore.
 ---pagebreak---   D,  INJURY
1.    Cumulation
(15)  The effects of Korean and Singaporean imports had to be analysed cumulatively, as set out
      in recital (29) of Regulation (EEC) No 1103/93.
2.    Determination of injury
(16)  Hie Commission concluded in its provisional findings, as set out in recitals (30) to (40) of
      Regulation (EEC) No 1103/93, that the Community industry had suffered material injury.
      No new facts concerning these findings were subsequently put forward in this connection.
      This conclusion is confirmed.
3.     Causation of injury
 (17)  The Commission pointed out in its preliminary conclusions that the substantial injury
       sustained by Community producers had been caused by dumped Korean and Singaporean
       imports (recitals (41) to (52) of Regulation (EEC) No 1103/93). No new arguments were
       put forward in this connection.
       It is confirmed that the material injury sustained by Community producers has been caused
       by dumped Korean and Singaporean imports.
 E.    COMMUNITY INTEREST
 (18)  In the Commission's provisional findings on imports of R.E.W.S. originating in Singapore
       and Korea, as set out in recitals (53) and (54) of Regulation (EEC) No 1103/93, as well as
       in the Council's definitive findings on imports of R.E.W.S. originating in Japan, as set out
       in recitals (94) to (98) of Council Regulation (EEC) No 993/93(4), the interests of the
       Community industry, of the consumers and of other industries and activities concerned have
       been considered. No new arguments were put forward in this connection.
 (19)  Therefore, the findings of Regulation (EEC) No 1103/93 in mis respect are confirmed.
 (4)
       OJNoL 104, 29.4.1993, p. 4.
 ---pagebreak--- F.   DUTY
(20) Provisional measures took the form of anti-dumping duties; these were imposed for the
     Korean and Singaporean producers at the level of the dumping margins established since
     the level necessary to remove injury exceeds the dumping margin as set out in recital (55)
     of Regulation (EEC) No 1103/93. No new arguments were put forward to contradict this
     approach.
     Therefore, duties should be imposed at the level of the dumping margins definitively
     determined in recitals (12), (13) and (14) of this Regulation.
(21) Accordingly, the following duties should be imposed:
            Han Instrumentation Technology Co. Ltd., Seoul                7.2%
            Cas Corporation, Seoul                                        9.3%
            Teraoka Weigh-System PTE Ltd., Singapore                     10.8%
            Descom Scales Manufacturing Co. Ltd., Seoul                  26.7%
(22)  In the case of firms which failed to cooperate in the investigation, the Commission
      considered in recital (57) of Regulation (EEC) No 1103/93 mat the duty should be
      established on the basis of the facts available in accordance with Article 7(7)(b) of
      Regulation (EEC) No 2423/88. It was considered that the most reasonable facts were those
      established during the investigation and that it would constitute a bonus for non-cooperation
      and could lead to circumvention of the anti-dumping measures should such firms be
      attributed a duty lower than the dumping margins established, as set out in recital (28) of
      Regulation (EEC) No 1103/93 for the cooperating Korean companies, namely 26.7%
      definitively, and as set out in recital (16) of that Regulation for products originating from
      Singapore 31%.
 G.   COLLECTION OF PROVISIONAL DUTIES
(23)  In view of the nature and the level of the injury caused to the Community industry by the
      dumped imports and, since the Commission's provisional findings are, for the most part,
      definitively confirmed, it is necessary that amounts secured by way of provisional anti-
      dumping duties should be definitively collected to the extent of the duty rate definitively
      imposed,
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                          Article 1
1.   A definitive anti-dumping duty is hereby imposed on imports of electronic weighing scales
     for use in the retail trade falling within CN code 8423 81 50 (TARIC code:
     8423 81 50*10) and originating in the Republic of Korea and Singapore.
2.   The rate of the duty applicable to the net free-at-Community-frontier price, before duty,
     shall be as follows:
     (a) Korea
           Products manufactured by:
           Han Instrumentation Technology Co. Ltd., Seoul             7.2%
           (TARIC additional code 8700)
           Cas Corporation, Seoul                                     9.3%
           (TARIC additional code 8701)
           All others (TARIC additional code 8702)                   26.7%
     (b) Singapore
           Products manufactured by:
           Teraoka Weigh Systems PTE, Ltd                            10.8%
           (TARIC additional code 8703)
           All others (TARIC additional code 8704)                   31.0%
3.    The provisions in force concerning customs duties shall apply.
                                              10
 ---pagebreak---                                               Article 2
The amounts secured by way of provisional anti-dumping duty under Regulation (EEC)
No 1103/93 shall be definitively collected at the duty rate definitively imposed. Amounts secured
in excess of the definitive rate of duty shall be released.
                                              Article 3
This Regulation shall enter into force on the day following that of its publication in the Offical
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
                                                             The President
                                                 11
                                                                                                   r-
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(93) 429 final
                                                      DOCUMENTS
EN                                                                         1102
                                Catalogue number : CB-CO-93-474-EN-C
                                                             ISBN 92-77-59264-8
Office for Official Publications of the European Communities
Lr-2985 Luxembourg