CELEX: 51993PC0596
Language: en
Date: 1993-11-23
Title: Amended proposal for a COUNCIL REGULATION (EC) imposing a definitive anti-dumping duty on imports of deadburned magnesite originating in the People' s Republic of China

ÎŒ/MISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(93) 596 final
                                                     Brussels, 23 November 1993
                                 Amended proposal for a
                                 COUNCIL REGULATION (EC)
                    imposing a dafinitiva anti-duitping duty on import» of
             daadburnad magnaaita originating in tha Paopla*a Rapublie of China
              (presented by the Commission pursuant to Article 189 A (2)
                                    of the EC-Treaty)
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 ---pagebreak---                           Explanatory Memorandum
1. The commission submitted to the Council a proposal for a Council
   Regulation (EEC) imposing a definitive anti-dumping duty on imports
   of deadburned magnesite originating in the People's Republic of China
   (COM (93) 413 final).
2. Following discussions on the proposal at the Commercial Questions
   Group and at the COREPER certain issues were reconsidered.
3. with regard to the comparison between normal value and export price,
   an   allowance  claimed   by  the   importers   and   the   end   users  for
   differences affecting price comparability       between Turkey and China
   has   been  granted. The    Commission  has modified      its   calculations
   accordingly.
4. As result of the modified calculation the minimum price at which the
   Chinese deadburned magnesite can be sold on the Community market
   should be 12 0 ECU per tonne. Consequently the duty should be equal to
   the difference    between  this minimum    price   and   the   net  free at
   Community frontier price before customs clearance.
5. Recitals   12 and   20 and Article     1 of   the   Commission's    proposal
    (COM(93) 413 final) have been modified in order to take account of
   the above.
6. For ease of consultation the parts of the text which are new or which
   are being modified are underlined.
 ---pagebreak---                                X
                   Amended proposal for a
                   COUNCIL REGULATION (EC)
      imposing a dafinitiva anti-dumping duty on importa of
daadbumad magnasita originating in tha Paople's Rapublic of China
 ---pagebreak--- In the proposal for a Council Regulation ((EEC) imposing a definitive
anti-dumping duty on imports of deadburned magnesite originating in the
People's Republic of China, the following texts replace recitals (12)
and (20) and Article 1.
For ease of reference the parts added or modified are underlined.
"(12)   The Chinese exporters argued that Chinese producers use simple,
        low cost, coke burning, shaft kilns and that an adjustment of
        10% should be made to reflect lower burning costs in China.
        The Commission established, however, that the Turkish producer
        also uses shaft kilns. By contrast the Commission accepted
        that an allowance should be made to reflect the higher cost of
        the  fuel   oil   used   by   the  Turkish    producer    and  costs of
        production have thus been reduced by 3%.         A number of importers
        and  end   users    both   before   and   after    the   imposition   of
        provisional    measures    alleged   that   when     importing   Chinese
        deadburned    magnesite     they   had   to    carry    out   themselves
        operations   such as analysis of the product, monitoring of
        loading of the product and removal of foreign substances. It
        was alleged that this requires often the use, by the importers,
        of personnel in China.       These operations, in the case of the
        Turkish   producers,     are    normally   done     by   the   producers
        themselves   and    do   not   require    any    intervention    of  the
        purchasers.    It was requested by these importers and end users
        that an allowance under Article 2.9 of the Basic Regulation
        should be granted to take account of differences           in conditions
        and   terms    of   sale     affecting    price    comparability.    The
        Commission considers on the basis of the information collected
        that the request for the allowance is justified,            on the basis
        of the information available from the Turkish producer, these
        costs have been evaluated to be 6% of the constructed sales
        price and, for purposes of the comparison, normal value has
        been adjusted accordingly.
        No other observations having been raised by any other party,
        the findings and conclusions in recital 19 of the Provisional
        Regulation are hereby confirmed by the Council.
 ---pagebreak---       The final examination of the facts showed the existence of dumping,
      the margin of dumping being equal to the amount by which the normal
      value exceeds the price for export to the Community. This margin is
      equal to ECU 4J_ per tonne. "
"(20) As  far as the     amount of   the duty   is concerned,  the   Commission
      established in recital 44 of the Provisional Regulation that only a
      duty equal to the full dumping margin        (as established   in recital
      12) which would bring the Chinese prices up to the normal value, is
      sufficient to remove the injury, caused by dumping, experienced by
      the Community    industry. No arguments concerning this duty        amount
      were put forward, subsequent to the imposition of the provisional
      duty, the Council, therefore, confirms the Commission's          findings
      and conclusions in this respect.
      As  far  as   the   form of  the   duty  is  concerned,  the   Commission
      considers that the structure of a State controlled economy gives
      the Chinese exporters considerable room for manoeuvre to           further
      decrease their export prices and such falls in price by           Chinese
      exporters have indeed taken place since 1988. The magnesite market
      is very sensitive to price instability thus the form of the duty
      should be such as to prevent further price decreases by the Chinese
      exporters. Therefore, neither a fixed amount of duty          nor an ad-
      valorem duty seem to be appropriate.
      In these circumstances     it is considered that a minimum       price at
      which the Chinese magnesite should be sold on the Community market
      should be established. This minimum price has been calculated on
      the  basis   of   the  weighted   average  normal  value  of   deadburned
      magnesite   as established    in recital   9   taking  into  account   the
      adjustments mentioned in recital 12. This minimum price adjusted to
      CIF community frontier     value   is 120 ECU per tonne for all grades.
      Consequently, the duty should be equal to the difference           between
      this minimum price and the net free at Community          frontier price
      before customs clearance. This is confirmed by the Council."
 ---pagebreak---                               "Article 1
1. A  definitive anti-dumping  duty  is  hereby imposed  on imports  of
   deadburned magnesite falling within CN Code   2519 90 30 originating
   in the People's Republic of China.
2. The amount of the duty, shall be the difference between ECU 120 per
   tonne and the net, free-at-Community-frontier price before customs
   clearance, if this price is lower.
3. The provisions in force concerning customs duties shall apply."
 ---pagebreak---                                              <c
                                                                     ISSN0254-1475 1
                                                                                   M
                                                              COM(93) 596 final
                                                      DOCUMENTS
EN                                                                         1102
                                 Catalogue number : CB-CO-93-633-EN-C
                                                             ISBN 92-77-61720-9
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