CELEX: 51987PC0340
Language: en
Date: 1987-07-06
Title: Proposal for a COUNCIL REGULATION terminating the review proceeding and repealing the anti-dumping measures concerning imports of urea and ammonium nitrate in liquid solution originating in the United States of America (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 340
Vol. 1987/0192
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(87 ) 340 final
                                                 Brussels , 6 July 1987
                                      Proposai for a
                                    COUNCIL REGULATION
         terminating the review proceeding and repealing the anti-dumping
        measures concerning imports of urea and ammonium nitrate in liquid
                solution originating in the United States of America
                            ( presented by the Commission )
                          rs,       -
 C0M(87 ) 340 ffHst
 COM ( 87 ) 340 f mal          . ..    •>
 ---pagebreak---                                                                              5
                           EXPLANATORY MEMORANDUM
1 . In February 1986 the Commission announced the initiation of a review of
anti-dumping measures concerning imports into the Community of urea and
ammonium nitrate in Liquid solution ( UAN ) originating in the United States
of America .
2 . The facts established during the course of the investigation held under
this proceeding indicate that the imports in question were not dumped to
any significant extent .
3.    In these circumstances the Commission considers that     it is  in the
Community 's interests to terminate the review without imposing further
protective measures and to repeal the anti-dumping measures currently in
force .
4. Accordingly, the Commission presents a draft Regulation to the Council
terminating the review proceeding and repealing the anti-dunping measures
applicable to imports of UAN in liquid solution originating in the United
States of America .
 ---pagebreak---                         Proposai for a
                       COUNCIL REGULATION
 terminating the review proceeding and repealing the anti-dumping measures
       concerning imports of urea and ammonium nitrate in liquid solution
                  originating in the United States of America
THE COUNCIL OF THE EUROPEAN C0W1UNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 2176 /84 of 23 July 1984 on
protection against dumped or subsidised imports from countries not members
of the European Economic Community , (1 ) and in particular Articles 14 and 15
thereof .
Having regard to the proposal presented by the Commission after consulting
the Advisory Committee set up by the above-mentioned Regulation ,
(1 ) OJ No L 201 , 30.7.1984, p. 1 .
 ---pagebreak---                                       - 2 -
Whereas :
A.   PROCEDURE
1.   In February 1986 the Commission received a request for a review of the
anti-dumping measures , and in particular those provided for by Council
Regulation ( EEC ) No 349 /81 of 9 February 1981,(2 ) concerning imports of
urea and ammonium nitrate in liquid solution        (UAN ) originating in the
United States of America .
2.   The request for a review, lodged by the Common Market Committee of the
Nitrogenous and Phosphatic Fertilizers Industry ( CMC-Engrai s ) on behalf of
manufacturers accounting for almost all of Community production of the
product in question , contained evidence of renewed dumping and of injury
caused thereby which was considered sufficient to justify review of the
above-mentioned measures .
The Commission accordingly announced , by a notice in the Official Journal
of the European Communities , (2 ) the initiation of a review of anti-dunping
measures concerning imports into the Community of UAN falling within Common
Customs Tariff subheading ex 31.02 C and corresponding to NIMEXE code
31.02.90, originating in the Uhited States of America .
(2 ) 0J No L 39, 12.2.1981 , p.4.
O ) 0J No C 219, 30.8.1986, p.2.
 ---pagebreak---                                      - 3 -
3.   The Commission officially advised the producers/ exporters and importers
known to be concerned and the complainant and gave the parties directly
concerned the opportunity to make known their views in writing and to
 request a hearing .
4.   No submissions were made on behalf of Community buyers of the product
in question .
5.    The Commission sought and verified all information it deemed to be
necessary for the purposes of establishing the facts and carried out
inspections at the premises of the following :
Producers / exporters
Agrico Chemical Company , Tulsa Oklahoma ,
Arcadian Corporation , Parsipanny, New Jersey ,
CF Industries Inc ., Long Grove , Illinois ,
Kaichem International Inc ., Savannah , Georgia ,
Nitron International Corporation , Greenwich , Connecticut .
Importer
Kaichem International B.V. , Breda , Netherlands .
6.    The investigation of dumping covered the period from 1 July 1985 to
30 June 1986
 ---pagebreak---                                       - 4 -
B.    DUMPING
 ( a) Export price
7.    As a general rule , export prices were determined on the basis of the
prices actually paid for the products sold for export to the Community .
8.     In the case of exports to subsidiaries established in the Community ,
export prices were reconstructed on the basis of the price at which the
imported product     was  first  resold   to  an  independent buyer ,  suitably
adjusted to take account of all costs incurred between importation and
resale , including customs duties and a 3% profit margin .         This profit
margin was considered reasonable in the light of the profit margins of
independent importers of the product in question .
( b)   Normal value
9.     For each of the producers/ exporters concerned the normal value was
established on the basis of the weighted average of comparable domestic
selling prices actually paid or payable to these producers/ exporters in the
ordinary     course  of  trade  for   like   products  intended  for   domestic
consumption .
 ---pagebreak---                                        - 5 -
 c)  Comparison
10 .   In comparing normal value with export prices , the Commission took
account , where appropriate , of differences affecting price comparability ,
such   as   discounts   and   quantity   rebates ,  commissions ,  credit  terms ,
transport and insurance , handling , packing and related costs , salesmen 's
salaries , physical characteristics .    Due allowance for such differences was
made where claims in these areas could be satisfactorily substantiated .
11 .    All  comparisons were made at the same        level of trade - at the
ex-producer/ exporter level .
( d)  Dumping margin
12 .  A comparison between the normal value and export prices showed that
the exports    in question were not being dumped , except for exports by
Kaichem International , for which the weighted average margin amounts to
less than 1%, that is to say an insignificant level which does not justify
the adoption of protective measures .
C.   INJURY
13 .  In view of the above findings concerning dumping , the Commission found
that   continuing   the  investigation    into  alleged   injury  concerning the
 ---pagebreak---                                     - 6 -
imports in question was not justified , given that anti-dunping measures can
be imposed only if an investigation proves that , during the period covered
by the investigation , there was more than minimal dunping , and in the
interests of the Community measures should be taken .
D.   TERMINATION OF REVIEW PROCEEDING AND REPEAL OF ANTI - DUMPING MEASURES
14.    In these circumstances , therefore , the review proceeding should be
terminated without the imposition of further protective measures and the
anti-dumping measures currently in force concerning imports of the product
originating in the United States of America should be repealed .
15 .  No objections to this course were raised in the Advisory Committee .
16 .  The complainant was informed of the main facts and considerations on
the basis of which the Commission intended to terminate the proceeding .
 ---pagebreak---                                     - 7 -
HAS ADOPTED THIS REGULATION :
                                 Sole Article
1.   The review of the anti-dunping measures concerning imports of UAN
falling within Common Customs Tariff subheading 31.02 C and corresponding
to NIMEXE code 31.02.90, originating in the United States of America , is
hereby terminated .
2.  The anti-dumping measures currently in force concerning imports of the
product referred to in paragraph 1 are hereby repealed with effect from
1  July 1985 .     National customs  authorities  shall  take the necessary
measures entailed by this repeal .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,
                                              For the Council
                                              The President