CELEX: 51993PC0641
Language: en
Date: 1993-12-10
Title: Proposal for a COUNCIL REGULATION (EC) imposing a definitive anti-dumping duty on imports into the Community of bookbound photo albums originating in the People' s Republic of China and collecting definitively the provisional anti-dumping duty

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       C0MC93) 641 final
                                       Brussels, 10 December 1993
                          Proposal for a
                     COUNCIL REGULATION (EC)
      imposing a definitive anti dumping duty on imports
      into the Community ol bookbound   photo albumu originating
      in the People's Republic ot China and collecting
      definitively the provisional anti-dumping duty.
                  (presented by the Commission)
 ---pagebreak---                                        A
                  COUNCIL REGULATION (EC) No.               /93
                                       Of
          imposing a definitive anti-dumping duty on imports
          into the Community of bookbound      photo albums originating
          in the People's Republic of China and collecting
          definitively the provisional anti-dumping duty.
        THE COUNCIL OF THE EUROPEAN UNION,
Having   regard    to   the  Treaty   establishing    the    European   *"* .
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  proposal   presented   by   the   Commission    after-
consultation within the Advisory Committee as provided for by the above
Regulation,
 (I) OJ No L 209, ?.. 8. 19HH, p.l
 ---pagebreak---                                            /y
Whereas :
                           A
                             -   PROVISIONAL    MEASURES
                                              (
(1)   By   Regulation   (EEC)    No.2477/93       , the  Commission  imposed a
      provisional anti-dumping duty on imports into the Community of book
      bound photo albums originating in the People's Republic of China
      and falling within      CN code 48205000.
                           B.    SUBSEQUENT   PROCEDURE
 (2)  Following the imposition of the provisional anti-dumping duty the
      following parties submitted comments in writing:
      Exporter of book bound photo albums originating           in the People's
      Republic of China.
         Climax Paper Converters Ltd., Hong Kong.
      Community producers:
      Germany :
      - Walter Aulfes, Mûnchen.
      - Ludwig Fleischmann GmbH & Co. KG, Fulda.
      - Karl Walter GmbH & Co. KG, Nettetal.
         Holson GmbH, Alsdorf.
        Netherlands :
       - Honzo B.V., Roermond.
 (2) OJ No L 228    9. 9. 1993, p.16
 ---pagebreak---                                          3
    Independent importer:
    WAHA, Gebrauchsgûter import Handelsgesellschaft          mbH, Germany
(3) Parties who so requested were granted an opportunity to be heard by
    the Commission.     The parties were      informed ol   the essential    facts
    and   considerations    on   the   basis   ot  which   it   wus  intended   to
    recommend   ttie imposition    of   definitive   anti-dumping   measures   and
    the definitive collection of amounts secured by way of            provisional
    duty.   They   were   also   granted    a  period   within    which  to   make
    representations subsequent to the disclosure.
(4) The parties' comments were considered, and, where appropriate, the
    Commission's findings were modified to take account of them.
(M  The invest igat;ion overran the normal duration of one year          provided
    for  in Article   7  (9)   (a) of Regulation      (EEC) No. 2423/88    due  to
    the time expended     in finding an appropriate reference         country  for
    establishment of normal value.
            C.   PRODUCT UNDER INVESTIGATION AND LIKE PRODUCT
(6) As no new arguments have been presented regarding the product under
    consideration    and   the    like   product,   the  Council    confirms   the
    findings of the Commission as set out in recitals 7 to 10 of               the
    provisional Regulation.
 ---pagebreak---                             D.    COMMUNITY   INDUSTRY
(7) No arguments have been presented regarding the Community industry.
    The Council therefore, confirms the findings of the Commission as
    set out in recital 26 of the provisional Regulation.
                                INDIVIDUAL TREATMENT
(8) in   Recitals    13   to   18   of   Regulation   (EEC)   No.   2477/93,  the
    Commission outlined the general and specific reasons why it was not
    appropriate to grant individual treatment in this case.
    Climax Paper Converters Ltd., (hereinafter Climax), the Hong Kong
    based exporter of Chinese bookbound photo albums, contested the
    Commission's    decision     not   to grant   individual   treatment  to  its
    exports on the basis of its dumping margin.           The exporter stressed
    that   it  is a profit      oriented    company,  based   in Hong   Kong  and
    operating     under     open     market    principles.   The    manufacturing
    operation    in   the   People's     Republic  of  China,    it  alleged,  is
    governed   by   these same market       principles.   The exporter    further
    alleged that as it was the sole cooperating exporter it is doubly
    penalised    since    it   suffers    the  impact  of   the   dumping" margin
    calculated for non-cooperating exporters.
 ---pagebreak--- (9) In it's preliminary determination the Commission outlined in detail
    at recital 18 the specific reasons why Climax was not entitled to
    individual treatment.    Since then no new arguments have been put
    forward establishing that Climax is free to act autononmcusly in
    its business   decisions   in the   People's   Republic   of  China.     The
    exclusion   of    individual     treatment     and    consequently       the
    establishment  of  a single dumping margin       has  an   impact   on   the
    cooperating  exporter.   However   no other    solution   is   practicable
    since the overriding   consideration must      remain that    all   exports
    from  countries   referred   to   in   Article   2   (5)   of   the   Basic-
    Regulation must be subject to a single country-wide duty for the
    reasons set out in recitals 13 to 17 of the provisional Regulation
    and,  in particular,   if   it  is   not  established    that   individual
    exporters  are  free to act    independently    from  the   State   in the
    conduct of their business affairs.
    The Commission has, therefore, come to the conclusion that it is
    appropriate in this case to establish a single anti-dumping duty
    for all exports from the People's Republic of China.
    The Council confirms this conclusion.
 ---pagebreak---                                              é
                                    F.   DUMPING
1.    Normal Value
(10) In the provisional duty determination the Commission concluded that
      South   Korea    was   an     appropriate    analogue     country    for  the
      establishment    of  the    normal   value  of    Chinese    exports   to the
      Community   and  normal   value was consequently        established    on the
      basis  of  Article   2   (b)    (b) of  the   Basic   Regulation,    i.e. the
      constructed va Lue of the like product in a market economy country,
      South Korea.
(11) The complainant Community producers argued that South Korea was not
      an   appropriate     and     reasonable    reference      country    for  the
      determination of the normal value and reiterated that the normal
      value should have been established under Article 2 (5) (c) of the
      Basic Regulation on the basis of prices payable in the Community
      for the like product.      It was contended that, although a comparable
      product   is manufactured      in South   Korea, the     existence   of anti
      dumping   measures   against     South  Korean   producers    established  by
      Commission    Decision   No.    90/241/EEC^      may   have   influenced  the
      competitive situation of South Korean exporters and affected the
      level of selling,     general and administrative expenses and profit
      margin obtaining in the South Korean market.
 (12) The Commission rejected this argument         since all of the elements on
      which the normal value was based as set out in recitals 21 and 22
      of the provisional Regulation were subject to normal market forces
      and there is no reason to consider that they were affected by
 (3)   OJ No. L 138, 31.5.1990, P.48
 ---pagebreak---                                      î
      existing anti-dumping measures i.e. price undertakings.         Moreover
      reference   to Article  2  (5)   (c)  is only   appropriate   if   either
      domestic prices or constructed value does -not provide an adequate
      basis.   Since such a basis was found this excludes the application
      of Article 2 (5) (c) .
      The Council confirms this approach.
2.    Export Price
(13) Climax contested the methodology used to establish the export price
      of bookbound photo albums from the People's Republic of China.         It
      argued   that t he  5% profit   margin  deducted   from   the  Hong   Kong
      export price, estimated by the Commission to be a normal profit
      realised on sales of photo albums of Chinese origin occurring via
      in Hong Kong, was excessive.      It alleged that a 1% or 2% profit
      margin was more appropriate for the transhipment of goods from the
      People's Republic of China to Hong Kong Harbour.
(14) The Commission rejected the exporter's argument since the resale of
      book bound albums in Hong Kong is an extensive commercial operation
      requiring an appropriate infrastructure.     Therefore a profit margin
      of 5% is considered reasonable to remunerate the effort          involved
      and therefore an appropriate deduction in order to determine the
      export price ex-China.
 (15) The   Commission   set  out,   in   recital  23   of   the   provisional
      Regulation, the methodology used to determine the export prices of
      the remaining exports where no information was available.           These
      export prices were determined on the basis of the facts available,
       in accordance with Article 7 (7) (b) of the Basic Regulation.
 ---pagebreak---                                        s
(16) Climax contested the methodology used to determine these prices and
      argued that, since the Eurostatistics for CN Code 48205000 embrace
      other types of albums, the Commission's estimate of the.volume of
      bookbound albums imported under this CN code was arbitrary.
(17) In estimating the volume of bookbound albums       imported under CN
      Code 48205000 the Commission knew the precise volume of bookbound
      albums exported by Climax and thus ascertained the volume of albums
      of whatever type, which made up the balance imported under the CN
      Code.  It was conservatively estimated that 50% of the remaining
      balance under the CN Code were bookbound photo albums since it was
      alleged that several manufacturers of bookbound albums in Hong Kong
      relocated their production to the People's Republic of China during
      1989 or 1990.   Since publication of the provisional findings it has
      been confirmed by an importer that, indeed,      three manufactueres
      relocated  and commenced   production  in the  People's Republic of
      China which confirms that the attribution of 50% of the balance to
      bookbound photo albums was a conservative estimate.     Furthermore,
      as Climax is apparently the main exporter of this product to the
      Community,   the attribution of 50% of the balance under the CN Code
      to other bookbound album exporters remains the most reasonable and
      accurate approach.
 (18) Climax also argued that the export prices of the non-cooperating
      producers should have been established on a model by model basis.
 ---pagebreak---                                          .3
(19) In establishing the export prices of the non-cooperating producers,
     the  Commission   took  account of   the  sub-categories     of   bookbound
     photo albums sold by Climax.      The two elements      which delineate a
     sub-category are the size of the inner sheet and outer cover and
     the   number  of  sheets   contained   in  the    albums.   Indeed,   these
     criteria are used by Climax to identity their albums and are the
     key factors used to compare albums of different producers.
(20) Models within a sub-category are merely variations arising due to
     the colour of the outside cover, the design of the outside cover or
     other incidental features peculiar to an individual producer.
(21) In determining export prices for the non-cooperating producers the
     objective was to base these prices on        the lowest prices at which
     Climax sold bookbound albums within a sub-category always ensuring
     that sales within the sub-category concerned could be considered
     representative.    While the Commission rejected        the argument that
     prices should have been established on a model by model basis, it
     re-considered the representativeness of the sub-categories included
      in the exercise.   In order to ensure that models were included from
     as many    sub-categories   as possible, further      export   transactions
     have been    included  thus   ensuring  that   all   sub-categories   where
     sales   exceeded   5%  of  total   sales  and    which   were,   therefore,
     sufficiently representative, were included in the sample.
     The Council confirms this approach.
 ---pagebreak---                                         ^
3.   Comparison
(22) As far as recital 24 of Regulation (EEC) No. 2477/93 is concerned,
     no  evidence   was  received  to alter    the Commission's   provisional
     conclusion.
     The Council therefore confirms this conclusion.
4.   Dumping Margin
(23) No further arguments were adduced on the methodology used by the
     Commission   in its preliminary determination of a single dumping
     margin for all Chinese exports.       Therefore one dumping margin has
     been established for the People's Republic of China on the basis of
     a weighted average of the dumping margin for which information was
     available and the dumping margin determined on the basis of the
     facts available in accordance with Article 7 (7) (b) (see recital
     15) of the Basic Regulation for the remaining exports for which no
     information was received.
     On  the basis    of  the modification    made to the  determination    of
     export prices for the non-cooperating producers, the dumping margin
     for   exports   from   the   People's   Republic  of   China   has  been
     established on a weighted average basis at 18.6%.                • '' •
     The Council confirms this conclusion.
 ---pagebreak---                                           ^
                                    G.   INJURY
1.    Total consumption, volume and market shares of dumped imports.
(24) All figures are confirmed except the data           relating   to Community
      consumption.    During    the    preliminary    investigation,      it    was
      estimated that thirty per cent of the volume of albums exported by
      Indonesian producers were of the bookbound          category.    However it
      was subsequently established that Indonesian exports of albums are
      mainly of the spiral and pocket type category and that bookbound
      exports are negligible.     Therefore the data on Indonesian bookbound
      albums   was overestimated     and   consequently  Community    consumption
      considered    to  be   in  the    order   of  15,500   tonnes   during    the
      investigation period.
2.    Prices of dumped imports.
 (25) In recital 10 of Regulation (EEC) No. 2477/93 it was acknowledged
      that   there  were   some physical differences      between   the   imported
      product and Community production.         A 10% adjustment was estimated
      to be appropriate to account for such differences and was taken
       into   account   in   establishing     the  price   undercutting      margin
       referred to in recital 29 of the provisional Regulation.
 (26) The Community industry challenged the 10% adjustment granted for
       apparent differences of the imported product         vis-a-vis    Community
      production    in the determination of the undercutting          margin.    It
       argued that a 5% reduction in price was more reasonable to account
       for material differences.
 ---pagebreak---                                          IL
(27) The Commission has considered this argument but finds no reason to
       deviate from the original figure based on a visual comparison of
       export models and Community production.
3 . ••• State of the Community Industry
(28) No new arguments were put forward on the state of the Community
       industry.   The  Council  therefore   confirms  the  findings  of  the
       Commission   as set out  in recitals    30 to 35 of    the provisional
       Regulation.
4.     Conclusion as to injury
(29) Climax requested that its original submission on injury made prior
       to the adoption of provisional measures be again considered before
       a definitive determination is made.
       The Commission re-examined the exporter's submission but found that
        it had already replied in full to the arguments put forward therein
       and since there were no fresh grounds to modify the        provisional
       determination   confirms   that   the   Community   industry  suffered
       material injury.
       The Council confirms this conclusion.
 ---pagebreak---                                           M
                              H.   CAUSE OF INJURY
(a)  Effect of dumped imports
(30) The  Commission has, in its preliminary          conclusions, set     out  in
     detail the effect of the dumped imports on the Community industry
     (recitals   37 and    38 of Regulation       (EEC) No.    2477/93) .  No  new
     arguments were put forward in this connection and, accordingly the
     Council confirms these conclusions.
(b)  Other factors.
(31) As far as recitals 39 to 40 of Regulation            (EEC) No. 2477/93 are
     concerned no new evidence was received to change the Commission's
     provisional    findings.    The   Council    consequently    confirms   these
     findings.
                                 COMMUNITY   INTEREST
(32) As  stated   in  recital    48  of  Regulation     (EEC)  No.  2477/93,   the
     Commission concluded that it was in the interests of the Community
     that   measures    be   taken.   Climax    requested    that   its   original
     submission   on   Community    interest   be   again   considered   before  a
     definitive determination is made.
 ---pagebreak---                                              11
(33) The Commission must point out that the argument             put   forward by
     Climax at the provisional stage,        i.e. that the only result; of the
     imposit ton  <>l  measures   on  Chinese  cxpuii :; would  be   to   giant,  an
     advantage   it   its  competitors    particularly    Indonesian    producers,
     has been addressed in recital 46 of the provisional Regulation.              No
     new arguments have been presented which would cause the Commission
     to alter the conclusions       set out in that recital.
     The Council confirms this conclusion.
                              J.   DEFINITIVE   DUTY
(34) Given that the injury level exceeded the dumping margin, the duty
     should be based on the latter in accordance with Article 13 (3) of
     the Basic Regulation.
                   K.   COLLECTION    OF   DEFINITIVE    DUTIES
(35) In view of the dumping margin established, and the seriousness of
     the injury caused to the Community industry, the Council considered
     it necessary., that     amounts   secured by    way   of provisional      anti-
     dumping   duty     should   be   definitively    collected    at    the    rate
     corresponding to the definitive rate of duty.
 ---pagebreak---                                            \r
HAS ADOPTED THIS REGULATION:
                                 Article    1
1.   A definitive anti-dumping duty is hereby imposed on imports of
     bookbound photo albums falling within CN code 48205000, (Taric Code
      4820500 10) originating in the People's Republic of China.
2.    The rate of the duty, applicable to the net, f ree-at-Community-
      frontier price, before duty, shall be 18.6%.
3.    The provisions in force concerning customs duties shall apply.
                                 At Licit:  2
The amounts secured by way of provisional anti-dumping duty imposed by
Regulation   (EEC) No. 2477/93 shall be definitively collected at the
rate corresponding to the definitive duty.
                                 Article    3
This Regulation shall enter into force on the day following that of 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    Council
                                                         The    President
 ---pagebreak---                                                                     ISSN 0254-1475
                                                              COM (93) 641 final
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