CELEX: 51980PC0704
Language: en
Date: 1980-11-03
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) IMPOSING A DEFINITIVE COUNTERVAILING DUTY ON CERTAIN SEAMLESS TUBES OF NON-ALLOY STEELS ORIGINATING IN SPAIN (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 704
Vol. 1980/0222
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(80 ) 704 final
                                                                   rd
                                                      Brussels , 3    November 1980
             /       PROPOSAL FOR A COUNCIL REGULATION ( EEC )
            /                        •
    IMPOSING A DEFINITIVE COUNTERVAILING DUTY ON CERTAIN SEAMLESS
           \ TUBES OF NON-ALLOY STEELS ORIGINATING IN SPAIN
               ,,,         n        ■ . ..
                   (presented by the Commission to the Council )
 COM ( 80 ) 704 final
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
        The Commission , by Regulation ( EEC ) N° 2019 / 80 of 28 July 1980 , imposed
        a provisional countervailing duty on certain seamless tubes of non-alloy
        steels originating in Spain . This Regulation applies until the entry into
        force of an Act of the Council adopting definitive measures or , at the
        latest , until 1 December 1980 *
        A month before the expiry of this time limit the Commission , pursuant to
                                                      (1 )
        the anti-dumping Regulation ( EEC ) 3017 / 79      , is required to submit
                                                                            submit to
                                                                                   to the
                                                                                      the
Council a proposal relating to the adoption of definitive measures .
        Since the imposition of the duty , the Commission 's services have continued
        their examination of the facts . During this subsequent examination the
        Spanish producers advanced arguments concerning their input structure .
        In order to arrive at a final assesment of the subsidy, taking the new
        information concerning the input structure into account , the Commission
        addressed in October 1980 a formal request to the Spanish authorities for
        information concerning the incidence of indirect taxation for raw: materials
        physically incorporated . The Spanish authorities supplied no information
        in response to the abovementioned request . For the final determination
        of the subsidy the Commission therefore has to base its calculations on
        the information available .
        The facts as finally established show      the existence of a countervai lable
        subsidy and injury and that the amounts secured by way of provisional duty
        should be definitively collected .
        In these circumstances , the Commission submits the attached proposal for
        a Council Regulation imposing a definitive countervailing duty on certain
        seamless tubes of non-alloy steels originating in Spain and providing for
        the definitive collection of the amounts secured by way of provisional duty .
        ( 1 ) 0J N° L 339 , 31.12.1979, p. 1 .
 ---pagebreak---                                                                         Proposai for a
 L196/ 3 /"                                                       COUN CTI. FZGULATTON {EEQ
 30.7.8(1                                        •  definitive
                                       imposing •                  countervailing duty on certain Ktmltu tube* of non«
                                                                  alloy ttccls originating in Spain
                    THE COUNCIL OP THE EUROPEAN
  L 23 / 1 V        COMMUNITIES*
 30.1.84
                    Having fr};ird to the Treaty establishing the European
                   Jlconunuc Community.
                     Having re^.ird to Council Regulation (EEC) No
                     3017/ 79 of 20 December 197? on protection against
                    dumped or subsidi / cJ import* Itorn countries not
                    members - ol the European Lconotmc Community ( ' ),
                     Having regard to the proposal submitted by the
                    Commission after consultation with the Advisory
                    Committee set up under Article 6 of Regulation ( EliC)
                     No 3017/7*..
                   whereas in August 1979 the Commission received a
L196/ 34          (.ompl.nnt lodged by the Comitc de Liaison de I'lndus-
                  tne du Tube d'Acier de la Communaute F.uropeenne,
                  on behalf of the German and UK ptoducers of seam­
                  less steel tubes, whose collective output constitutes the
                  m.ijor p.»t of the total Community production of the
                  ptoiliiit in question ; whereas the compl.unt coiHjmed ,
                  t vi>li iue on ( lie one hand of dumping and sul»idi /a-
                  tmn in respect of seamless steel tube * of non-alloy
                  \t«ils, falling within NIMIXE code* 7.VIN -|\ 2 ), 27,
                  2x , 72 and 74, on>Mn.uini< in Spain jiul on the other
                  hand of m.itcnal injury resulting ( herefrom ,
                  ^ Iitri-js, since there was sufficient evidence to |ti*(ify
                  i<iiti.itirtf a proceeding, the Commission accordingly
                  .inmiinued by » notice published in the Of/hi.ll
      '            (iinfi.il of tfir 1'nttipiun C.omtnumtu > ( ' ) the inilia-
                ! ii>>n of a pKHculmy concerning impoit * into tlie
                  ("• unmiimtv of VMinless steel tubes, falling within the
                  MM I XI ! codes in question and on^inating in Spain,
                  ,i' < i commenced an investigation of the matter at
                  < I'tumunify level ;
             ( 1 ) 0J N° L 339 , 31.12.1979 , p. 1
             ( 2 ) 0J NO C 264 , 19.10.1979 . p. 2
 ---pagebreak---  I
                                                                      - 2 -
                           during the preliminary examination of the subsidy aspect
                \X liercas, /* ith rm pn t in tli 1. 1 / il.iinmi ...
                •m.jui.i ol–rhi«i tulnidyi the Spanish authorities
               supplied no information -hi rw>[>.»rir < m i h >T aivji,w         despite two formal requests
               ♦tU'iiiiuiii'd–forninl–rgqmir* from the Commission,                                     '
                ili'l'iiu » fiÉitìtvr       nìiuiti hy i)u> C'nnmiìi > ìun in . in December 1979 and
                Kimury IVKO ; whereas preliminary findings                      were
               therefore t»«>n made on the hasis of the facts avail­
               able ; whereas these consist principally of various
               memoranda and calculations submitted on a confiden­
               tial basis by one of the complainants ;
              whereas, according to this information, tube produc­
              tion in Spain incurs liability to pay a cascade turnover
              lax, which is levied on every transaction involving the
              purchase of .goods or services (other than labour) ;
L196/ 35  u i.cieji, on export of the finished tube, the Spanish
          f»l'ii(fcn rcu'ive a tax rebate currently equal to
          H t */• of the export price. *!> ish accurdin£ to the
         Spanish authorities is destined to ottset the indirect
         taxes levied on the finished product and on all prior
         transactions involved in its production ;
         Whereas, a!ur examining the application of the
         Spanish system of indirect taxation to seamless steel
         tubes and the input structure of this product, the
         Commission «4n> concluded that part of this tax rebate
         for seamless steel tubes, equal to 10-15% of the
         export price, cannot be regarded as a non-countervail-
         able export rebate ;
                      since the
L196/ 3q  Whereas f | preliminary examination of the facts showed
          «<.> nit-t|urinly ilium* the existence of a countcrvailable subsidy
         *»(»un u luu on exports to the Community of the
          product in question originating in Spain, and there                 was
          suificient ev.dcnce of injury resulting from their entry
          for consumption in the Community^/and the interests of the Community called for immediate
           intervention , the Commission, by Regulation ( EEC) N° 2019 /80 ( 1 ) imposed a
           provisional countervailing duty on seamless steel tubes of non-alloy steels
           fallir.g within Nimexe Codes 73 -18-13, 23, 27 , 28 , 72 and 74, originating in Spain;
           ( 1 ) 0J N° L 196 , 3C*07„198C , p., 34
 ---pagebreak---                                                                                          - 3 -
L 23 / 20
     l !■ ' ftereat in f.Sc course of ihc lubttquent examination
            ; 0( 1 f                             after the i-rrpvtion 0f iSe
           ! [                              'X          the interested r.,r ,f, -( countervailing
           J >'..1 ihr vnv,„u.„ry to ni.il.c known Cheir v,f%» ,n
           I               to K hc.itj l>y the tlommis%iii» in ,.I toforallv 1 1
               <Ι^. Ύ (ί„·„ ν,,ν.^110 ..,ίρ,α ηοη , υηίτ,                    ,,, ι,,,Γ ί
                         r,KV .,,„ ,o ,|.c ,KU ful. o |        , 11I)(i4ts jnJ            l
                                                                                                                         "
                                                                                                                                         I
                                                                                                                                         \
              .1 " iiilot inol o* i !, c Cv v „:. .| |,U s .,„J l („, ,„ U ,           •
                   I1.C I-JMI of * l.uh It u .,v mu.ul.J to ,„ Av j li.u|
         . (• vt (, rinin.itii<n ; wlu tc.vs tlie V               . | ,,             i
                   . .        LlJ t'T° rtvr* «*"■>- ir»|i mtii» uwuifncd
              AV .u.n. IL.TN.^KO of i I .cnc |w»nx,¡ .. I ,« .v t,y n .A.ne '
   ,          known tlu-if view» in mniin# anj uully ;
         I
        j Whereas            the arguments advanced by the exporters showed In particular
                  «. „ prelminary ,                                                                          K UfcMVOr
       | that the /calculations made by the Commission concerning the input
       i structure of the Spanish tube producers , based on the information then
      | available to the Commission, did not adequately reflect their true
      , situation; whereas the Commission has taken due account of these arguments in its
          definitive calculations regarding the Spanish export rebate;
                                 Whereas , in order to arrive at a final assessment of the subsidy, the
                                 Commission addressed in October 1980 a formal request to the Spanish                                  "i
                                 authorities for information concerning the incidence of indirect taxation
                                 for raw materials physically incorporated; whereas the Spanish authorities
                                 supplied no information in response to the above-mentioned request ;
                                whereas the Commission therefore has to base its calculations on the
                                 information available , "from the complainants which shows a tax incidence of 4%
                               for scrap and 5,25% for semi-finished products , compared with the figure of                        ,|
                               14,5% used as an assumption in the preliminary determination;
                                                                                                                                      I
                                                                                                                                      i
                                                                                                                                      (
  Whereas the "input structure of the three producers concerned is not identical , in                                                  i
                               particular because One of the firms concerned is fully integrated , while
                               the other two are not , and thus have to buy semi-finished raw materials ,                           ,
                               with the result t ha 't the incidence of indirect taxation for these latter                          j
                               firms is higher thah for the first firm , thereby entitling them to receive                          \,
                               a higher export rebate under the physical incorporation criteria ;
                                                                            appropriate
                               whereas it is , therefore ,                                     to establish a weighted average
                               level of subsidy;                  whereas on this basis the Commission considers that
                               the Spanish exporters of seamless tubes are entitled to receive an export
                                                       2„75%
                               rebate equal to               /    of the export price; the rebate received in excess
                                                                          11-75%
                               of this amount , equal to J                               of the export price, cannot be considered
                               to be a non-counterva i lable export rebate;
 ---pagebreak--- \lZbl7A                      *
              ^'hereai. with • regard to         the         elements
              M'ectinj: th« determination of injury, no new informs* *
              ti><r» wa* rrccivfj nof further argument* advanced
              vklnv'i could have altered Tit Jt determination :
          Whereas, therefore, the facts as finally established
          show that, due consideration having been given to the
          other factors having a bearing on the situation of this
          industry, it** mmn|ili , tin ikilnu uf twpuiu tu IUUII-
          [ ii hi mil ml' tlx Cnnnminihji ihi ilmniuil ni)| rrti are
          •n IIIIIII I IUJ BUIIII U lliu tiun>mum>y. the Jum^d
          import^{are causing or threatening to cause material ■       in Ques tl0n
          injury to the Comniumyindustry concerned ;              ^
              Whereas , in these circumstances, the protection of the Community 's
              Interests calls for the Imposition of a definitive countervailing duty
              in respect of certain seamless steel tubes of non-alloy steel originating
              in Spain and for the definitive collection of the amounts secured by
             way of provisional duty;
             Whereas as regards the question of the existence of dumping , the
             Commission is still continuing its investigation and will take appropriate
            measures in due course ;
       -36
          whereas, accoijding to the information available, the
         export tax rebate is paid by reference to the fol> price
         where the goods leave Spain by ship, by reference to                          '
         the price free on rail truck Spanish frontier in the case
         of goods leaving Spain by rail, and by reference to the
         ex-works price in the case of goods leaving Spain by
         road ; whereas no tax rebate is granted in respect of
         commissions paid to exporters' agents in the Commu­
         nity ; whereas these factors must be taken into
         account in the determination of the amount of coun­
         tervailing duty to be levied ;
      Whereas the amount of the definitive countervailing duty - should be fixed at *
      1 1 -75%         of the relevant export price as above , due account being taken
      Of any commission paid ;
 ---pagebreak---                                                                         - 5 -
                     HAS AIXiKTtU THIS REGULATION :
                                               ArtnU I
-*196/ 36            ,         . definitive
                     1.       A Ifianinowtl countervailing duty is hereby
                     iffi posed on seamless sleel tubes^talling wuhin7                    non-alloy steels
                    subheadings ex 73.18 A and ex 73.18 C of the
                    Common Customs Tarilf, corresponding to N1MEXE
                    codePp3.18-13, 23, 27,   27, 28,
                                                 28. 72
                                                     7 and 74, originating in
                    Spain.
                    2. The amount of the ^rlarul^al^countervailing
                    duty shall be equal to       J        of the export price fob   Ό 1.75%
                   Spanish port of export or free Spanish frontier, as
                    appropriate. Where the importer cannot furnish
                    reasonable evidence of this price, the dury shall be            _£ΐ 1 -75%
                   equal to          t     of the value for customs purposes
                   after deduction of a fixed amount of 29-40 EUA per
                    tonne.
 L196/ 37
             . 3.            In the case of shipments to Germany by Tubex-
                   port on behalf of Tubos Reunidos SA or Babcock and
                       ilcox Espartola SA which are imported by Goos-
                   nunn GmbH Stahlrohrvcrtricb acting as sole agent for
              _ ,ht;.?bov! CQr"Ponies, the duty shall be assessed at >_
             11»40 /i of thr price (referred to in paragraph ^ above v r va '- ue
                       net this           includes the commission paid to
                  Cioosnunn GmbH .
                          ; I he provisions in force with regard to customs
                  duties shall apply to the 1 ■ 1 r'""'' iq""'^iil'-Ty
                                                           definitive countervailing
                                                                     Arti ele 2
           The amounts secured by way of provisional duty under Regulation ( EEC ) N° 2019 / 80 ,
           shall be definitively collected *
                                                                     Article 3
           This Regulation shall enter into force on the third day after nts publication
           in the Official Journal of the European Communities *
          This Regulation shall be binding in its entirely ^nd directly applicable in all Member
          States.
          Done ac Brussels,            .                ,                                        j
                                                                            For thi Council    • i