CELEX: 51989PC0291
Language: en
Date: 1989-06-09
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) TERMINATING THE PROCEEDING IN CONNECTION WITH A REVIEW OF ANTI-DUMPING MEASURES CONCERNING IMPORTS OF FIBRE BUILDING BOARD ( HARDBOARD ) ORIGINATING IN CZECHOSLOVAKIA, POLAND AND THE USSR, CONFIRMING THE EXPIRY OF THE DEFINITIVE ANTI-DUMPING DUTIES IMPOSED ON IMPORTS FROM CZECHOSLOVAKIA AND POLAND, AND REPEALING THE DEFINITIVE ANTI-DUMPING DUTY IMPOSED ON IMPORTS FROM THE USSR

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              C0MC89) 291 final
                                              Brussels, 9 June 1989
                              Proposal for a
                        COUNCIL REGULATION (EEC)
terminating the proceeding in connection with a review of ant I-dumping
    measures concerning Imports of fibre building board (hardboard)
  originating in Czechoslovakia, Poland and the USSR, confirming the
        expiry of the definitive antI-dumping duties imposed on
       imports from Czechoslovakia and Poland, and repealing the
     defenltive ant I-dumping duty imposed on imports from the USSR
                     (presented by the Commission)
 ---pagebreak---                           Explanatory Memorandum
1. Following the requests lodged under Article 14 and 15 of Council
   Regulation (EEC) No 2423/88 by the European Confederation of wood-
   working Industries, the Commission announced In the Official Journal
   of the European Communities1 the Initiation of a review of anti-
   dumping measures concerning        Imports of   fibre building    board
    (hardboard) originating In Czechoslovakia, Poland, USSR, Romania,
   Sweden and BrazlI.
2. The protective measures under consideration were adopted by the
   Council and only concern imports from Czechoslovakia, Poland and
   USSR. However, for the assessment of Injury or threat of Injury, It
   was considered appropriate to take Into account also the imports from
   Romania,    Sweden   and   Brazil,   where  the   Commission   accepted
   undertakings.
3. The development of Imports from the six countries Involved in the
   proceeding, assessed In the light of the Increase of Community
   consumption, leads to a combined market share which remained stable
   at about 21% during the last three years. Although the market share
   held by Imports originating In the State trading countries concerned
   rose from 6.1% to 8.3% over the same period, this had no significant
    Impact on the Community Industry because Imports from those countries
   did not directly compete with the Community production.
4. As for the prices of Imports from the State trading countries
    Involved, considering the application of the ant I-dumping duties In
   force, as well as the adjustments Justified by differences in quality
   and finish of the imported product, levels of undercutting found for
   Czechoslovakia and Poland were not material and that found for USSR
   has not significantly affected the Community prIces.
5. Based on the trends of certain relevant economic factors (production,
   capacity utilisation, stocks, sales, market share and profitability)
    it appears that the situation of the Community           Industry has
   substantially improved.
6. Under these circumstances the Community     Industry  Is not presently
   sufferelng material Injury.
7. In order to analyse whether thé expiry of the measures In force would
   lead to a situation causing or threatening to cause material injury
   to the Community Industry, the probable development of volumes and
   prices of the imported product was taken Into consideration. In view
   of that development, such a situation Is not, at present, clearly
   foreseeable.
1  OJ No C 165, 24.6.1988, p.2
 ---pagebreak---                                   - 2 -
8.  As to dumping, given the findings with respect to Injury and threat
    of injury, It was considered unnecessary to further Investigate the
    question.
9.  It follows therefore, that the review proceeding concerning Imports
    from Czechoslovakia, Poland and USSR should be terminated without the
    imposition of further protective measures. As to the measures
    concerning USSR they should be repealed (the relevant five-year
    period has not expired), and those in respect of Czechoslovakia and
    Poland allowed to lapse.
10. Termination of the review proceeding concerning Imports from Romania,
    Brazil and Sweden Is proposed to be decided by the Commission.
 ---pagebreak---                                Proposal for a
                          COUNCIL REGULATION (EEC)
 terminating the proceeding in connection with a review of ant I-dumping
     measures concerning Imports of fibre bulIding board (hardboard)
   originating In Czechoslovakia, Poland and the USSR, confirming the
         expiry of the definitive anti-dumping duties Imposed on
        imports from Czechoslovakia and Poland, and repealing the
      defenitlve ant I-dumping duty imposed on Imports from the USSR
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 Community1, and In particular
Articles 14 and 15 thereof,
Having regard to the proposal submitted by the Commission            after
consulting the Advisory Committee as provided for by the             above
Regulation,
Whereas:
A.   PRODUCT
     The product concerned Is fibre board of a density exceeding
     0.8g/cm3 falling under CN codes 4411 11 00 and 4411 19 00.
1    0J No L 209,   2.8.1988, p. 1.
 ---pagebreak---                                    - 2 -
B. PROCEDURE
2. The Commission received two requests for a review of ant I-dumping
   measures, lodged by the European Confederation of Wood-working
    Industries on behalf of Community producers representing the great
   majority of Community output of hardboard. One request was lodged
   under Article 15 of Council Regulation (EEC) No 2176/84 with regard
   to the undertakings accepted by the Commission on Imports from
   Romania2, Brazil3 and certain Swedish exporters4, and alleged
   that the expiry of the measures would lead again to injury or
   threat of Injury. The other request, lodged under Article 14 of
   that Regulation, concerned the definitive anti-dumping duties
    imposed by the Council on Imports from Czechoslovakia and Poland5
   and    from    the USSR6 and    the undertakings accepted   by  the
   Commission on imports from certain (I.e. three) other Swedish
   exporters 7 , 8 and contained evidence of changed circumstances
   sufficient to Justify the need for such review.
3. The Commission accordingly announced by a notice In the Official
   Journal of the European Communities9 the initiation of a review of
   anti-dumping measures concerning imports into the Community of
   fibre building board (hardboard) originating in Czechoslovakia, the
   USSR, Poland, Romania, Sweden and Brazil, and commenced an
   investigation which covered the period from 1 July 1987 to 31 May
   1988.
4. The Commission officially so advised the exporters and Importers
   known to be concerned, the representatives of the exporting
   countries and the complainants, and gave the parties directly
   concerned the opportunity to make known their views In writing and
   to request a hearing. Most of the known producers and exporters
   and some Importers made their views known In writing. Most of the
   known exporters and some producers and Importers requested and were
   granted hearings.
2  0J  No L  49, 22.2.1983, p. 6.
3  0J  No L  47, 19.2.1983, p. 30.
4  0J  No L  181, 25.6.1982, p. 19.
5  0J  No L  361, 24.12.1983, p. 6.
6  0J  No L  170, 29.6.1984, p. 68.
7  0J  No L  46, 25.2.1986, p. 23.
8  0J  No L  361, 24.12.1983, p. 47
9  0J  No C  165, 24.6.1988, p. 2.
 ---pagebreak---                                   - 3 -
5. In December 1988 1 0 the Commission gave notice that, in accordance
   with Article 15(4) of Regulation (EEC) No 2423/88, the anti-dumping
   measures concerning Imports of hardboard from Czechoslovakia,
   Poland and two Swedish exporters (Swedeboard Vrena AB and Royal
   Board AB) would remain in force after the end of the relevant five-
   year period, pending the outcome of the review being carried out
   under Article 14 of that Regulation. The relevant five-year period
   has not expired regarding both the undertaking given by the third
   Swedish exporter, Karl it AB, and the anti-dumping duty on Imports
   from the USSR.
6. The Commission sought and verified all Information It deemed to be
   necessary for the purposes of a preliminary determination and
   carried out Investigations at the premises of the following
   companies:
   a) Community producers
   - I sore I (Boulogne), France
   - ICL SPA (Mondovi), Italy
   - Legnochlmlca Spa (Mondovi), Italy
   - Taflsa (Madrid), Spain
   - Renltex GmbH (Los.helm), Federal Republic of Germany
   - Atex Werke GmbH & Co. KG (Grafenau), Federal Republic of Germany
   - Tafinsa Ltd (Agent of Taflnsa) (Maidenhead), United Kingdom
   b) Importers
   - Portes Simon SA (Durtal), France
   - ETS Jean Huet et Fils SA (Chai I ans), France
   - Sadepan SPA (Vladana), Italy
   - Homanlt GmbH & Co. KG (Loehne), Federal Republic of Germany
   - Steinbrugge and Bernlnghausen GmbH & Co. (Bremen), Federal
     Republic of Germany
   - Svedex B.V. (Varsseveld), Netherlands
   - Bey Ieve Id B.V. (Rotterdam), Netherlands
   - TrIbomIJ B.V. (Amsterdam), Netherlands
10 OJ No C 327, 20.12.1988, p. 8.
 ---pagebreak---                                  - 4 -
C.  INJURY OR THREAT OF INJURY
7.  The protective measures under consideration were Introduced by the
    Council and only concern Imports from Czechoslovakia, Poland and
    the USSR. However, for the assessment of Injury or threat of
    Injury, it is considered appropriate to take into account also the
    imports from Romania, Sweden and Brazil, where the Commission
    accepted undertakings. The cumulation of the imports is in line
    with the Institutions' standard practice.
8.  With regard to the Injury allegedly still being caused to the
    Community Industry, the evidence available to the Commission shows
    that imports of hardboard originating in the six countries involved
    in the proceeding Increased from 208 000 tonnes in 1985 to 263 000
    tonnes In 1987 and reached 112 500 tonnes during the first five
    months of 1988. The development of these Imports, assessed In the
    light of the increase in Community consumption of hardboard over
    the same period, was such that the combined market share held by
    Imports from those exporting countries remained stable at
    about 21%.
9.  in particular, Imports from Sweden and Brazil taken together showed
    a decline In their market share from 14.3% In 1985 to 13% during
    the first five months of 1988. In terms of volume these Imports
    progressed by 15% in that period, which Is distinctly slower than
    the rise in Community consumption.
10. Imports originating in the State-trading countries concerned
    increased over the same period faster than Community consumption,
    and consequently their combined market share rose from 6.1% to
    8.3%. It was found, however, that at least one third of the
    Imports concerned related to a specification of           hardboard
    exclusively addressed to the packaging Industry In the Netherlands.
    This specification Is hardly produced by the Community Industry, so
 ---pagebreak---                                   - 5 -
    that no competition for it exists. As for the remaining Imports,
    they consist mainly of hardboard directed at low-price segments of
    the market for which Community producers, under the present high
    rate   of   capacity   utilization,   produce  only    insignificant
    quantities. Accordingly, the      impact of   imports from     those
    countries on the Community industry Is limited by their reduced
    degree of competition.
11. As regards prices of the Imports from the six countries concerned,
    their comparison during the period under Investigation with prices
    of Community producers of like products did not show, In the case
    of Sweden, any margins of undercutting at all, and margins found
    for Brazil were not significant.
    As for the prices of Imports from the State-trading countries
    involved, It was found that, considering the application of the
    antI-dumping duties in force, as well as the adjustments Justified
    by differences In quality and finish of the Imported product,
    levels of undercutting were likewise not significant in the case of
    Czechoslovakia and Poland. Margins of undercutting found for the
    USSR and Romania have not significantly affected Community prices
    owing to the very small market share held by Imports from these two
    countries and their concentration in certain low-price sectors of
    the Community market.
12. As far as the possible impact of the Imports on the situation of
    the Community producers Is concerned, account had to be taken of
    the following factors:
    a)  Total Community production of hardboard during the first five
        months of 1988, extrapolated on an annual basis, amounted to
        789 000 tonnes against 651 000 tonnes in 1985, which represents
        an Increase of 21%. Over the same period, production
 ---pagebreak---                                  - 6 -
        capacities, expressed in tonnes, of Community producers taken
        together Increased by 5%, and capacity utilization consequently
        also Increased by nearly 16%. These trends enabled the
        Community Industry to achieve a rate of capacity utilization of
        93% on average.
    b)  Stocks held by Community producers at the end of May 1988,
        expressed In tonnes, were nearly 9% lower than at the end of
        1985.
    c)  Sales by Community producers of hardboard In the Community were
         in line with the Increase In production between 1985 and the
        first five months of 1988.
    d)  A comparison between the abovementloned development          of
        production and sales of Community producers and that of
        Community consumption of hardboard shows that the market share
        held by Community producers remained stable at about 61%. This
        indicates that the Community industry was able to take
        advantage of the Increasing demand.
    e)  With regard to profitability, the Community situation has
        improved considerably In the last three years. During this
        period the Community industry has been able to progressively
        reduce its losses and since the end of 1986 the majority of
        Community producers have once again achieved reasonable profit
        margins.
13. In the light of the trends of the relevant economic factors
    referred to above, It appears that the situation of the Community
    has substantially improved. This Is witnessed especially by the
    good financial results and the high level of capacity utilization
    achieved by most Community producers. Under these circumstances,
    It is concluded that the Community Industry Is not at present
    suffering material Injury as a result of the Imports concerned.
                                                                        <»
 ---pagebreak---                                  - 7-
14. In order to analyse whether the expiry of the anti-dumping measures
    In force would lead to a situation causing or threatening to cause
    material Injury to the Community industry, the Commission took Into
    consideration the probable development of volumes and prices of the
    Imported product.
15. As previously mentioned, imports from the six countries concerned
    did not progress In terms of volume, during the last four years,
    distinctly faster than Community consumption, and consequently the
    market share held by those countries remained stable over that
    per iod.
16. With regard to installed capacity, that of Sweden has been recently
    reduced after the closure of one of the main producers/exporters
    in that country. In respect of Brazil and the State-trading
    countries concerned, no clear Indication exists of additional
    capacities being installed in recent years.
17. As to the likelihood that the existing spare capacities will be
    used to Increase exports to the Community, two factors should be
    considered. First, even if these countries were to Increase
    production, the magnitude of such increase would be limited, at
    least In the near future, by the already relatively high estimated
    rate of capacity utilization. Secondly, given the distribution of
    traditional exports from those countries between the Community and
    other regions, it is doubtful that such Increase in production
    would lead to significant increases in exports to the Community in
    relation to Community consumption.
18. It follows that, after the expiry of the protective measures, the
    foreseeable development of the Imports concerned is not likely to
    have a significant Impact on the Community industry.
                                                                        Ac
 ---pagebreak---                                  - 8-
19. Concerning prices of Imports from Sweden and Brazil, Is was found
    that the exporters have been selling their products In the
    Community at prices similar to those of Community producers and
    that they have respected and, In many cases, even exceeded the
    minimum prices of the undertakings in force. This, together with
    the high quality of Swedish and Brazilian hardboard, leads the
    Commission to assume that there Is no clear indication that prices
    for hardboard Imported from these two countries would decline and
    undercut Community producers' prices to an extent likely to cause
    material injury, If the undertakings were allowed to lapse.
20. With regard to prices of Imports from the State-trading countries
    concerned, the expiry of the protective measures would give the
    exporters an opportunity to adjust their prices to the level
    prevailing on the Community market. Even If the exporters did not
    take full advantage of such an opportunity, whatever undercutting
    would remain should have, under present circumstances, a limited
    effect on the prices charged by Community producers. The reason for
    this is that, in addition to the fact that no sizeable Increase in
    Imports from these countries Is expected, a major proportion of
    these Imports does not directly compete with Community production.
21. In view of the above considerations, It must be assumed that,
    following the expiry of the ant I-dumping measures In force, a
    situation in which the Imports concerned would cause or threaten to
    cause material Injury to the Community Industry is not, at present,
    clearly foreseeable.
                                                                        AA
 ---pagebreak---                                   - 9 -
D.   DUMPING
22. Given the above findings with respect to injury and threat of
     Injury, the Commission considered It unnecessary to further
     investigate the question of dumping with regard to the imports
     concerned.
E.   TERMINATION OF REVIEW PROCEEDING
23. In these circumstances, therefore, the review proceeding concerning
     imports of hardboard originating in Czechoslovakia, Poland and the
     USSR, should be terminated without the Imposition of further
     protective measures. The antI-dumping measures concerning the USSR
     should be repealed and those In respect of Czechoslovakia and
     Poland should be allowed to lapse.
24. No objections to this course of action were raised In the Advisory
     Committee.
25. The complainants were Informed of the considerations and main facts
     on the basis of which the Commission intended to terminate the
     proceeding.
26. Termination of the review proceeding concerning         Imports of
     hardboard originating In Romania, Brazil and Sweden is decided by
     Commission Decision (89/       /EEC)* 1 1 ),
(11)     OJ No L ...
                                                                        Az
 ---pagebreak---                                  - 10 -
    HAS ADOPTED THIS REGULATION:
    Article 1
1.  The review procedure of the ant I-dumping measures concerning
    imports of fibre building board (hardboard) falling under CN codes
    4411 11 00 and 4411 19 00, originating In Czechoslovakia, Poland
    and the USSR, Is hereby terminated.
2.  The definitive ant I-dumping duties currently in force concerning
    Imports of fibre building board (hardboard) originating In
    Czechoslovakia and Poland shall lapse.
3.  The definitive ant I-dumping duty currently in force concerning
    Imports of fibre building board (hardboard) originating in the USSR
    Is repealed.
    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 Brussele
                                            For the CounciI
                                                                        A3
 ---pagebreak--- Commission of the European Communities
COM(89) 291 final
Proposal for a
COUNCIL REGULATION (EEC)
terminating the proceeding in connection with a review of anti-dumping
measures concerning imports of fibre building board (hardboard) originat-
ing in Czechoslovakia, Poland and the USSR, confirming the expiry of the
definitive anti-dumping duties imposed on imports from Czechoslovakia
and Poland, and repealing the definitive anti-dumping duty imposed on
imports from the USSR
(submitted to the Council by the Commission)
9.6.1989
Office for Official Publications of the European Communities
L - 2985 Luxembourg
Series: DOCUMENTS
 1989 - 13 pp. - Format: 21.0 x 29.7 cm
EN
ISSN 0254-1475
ISBN 92-77-50757-8
Catalogue number: CB-CO-89-226-EN-C
 ---pagebreak---                                                    ISSN 0254-1475
COM(89) 291 final
 DOCUMENTS
Proposal for a
COUNCIL REGULATION (EEC)
terminating the proceeding in connection with a
review of anti-dumping measures concerning imports
of fibre building board (hardboard) originating in
Czechoslovakia, Poland and the USSR, confirming the
expiry of the definitive anti-dumping duties imposed
on imports from Czechoslovakia and Poland, and
repealing the definitive anti-dumping duty imposed on
imports from the USSR
(submitted to the Council by the Commission)
 11                                              9.6.1989
Catalogue number: CB-CO-89-226-EN-C
ISBN 92-77-50757-8
€
COMMISSION OF THE EUROPEAN COMMUNITIES