CELEX: 51983PC0133
Language: en
Date: 1983-03-14
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2761/81 imposing a definitive antidumping duty on o-xylene (orthoxylene) originating in Puerto Rico and the United States of America (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 133
Vol. 1983/0039
 ---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(83) 133 final
                                             Brussels, I^March 1983
                              Proposal for a
                          COUNCIL REGULATION (EEC)
        amending Regulation (EEC) No 2761/81 imposing a definitive anti­
        dumping duty on o-xylene (orthoxylene) originating in Puerto Rico
        and the United States of America
                 (submitted to the Council by the Commission)
COM(83) 133 final
 ---pagebreak---                      EXPLANATORY MEMORANDUM
On 2Z September 1981 the Council, by Regulation (EEC) No 2761/81
imposed a definitive anti-dumping duty on imports of o-xylene
originating in Puerto Rico and the USA. Undertakings from five
exporters were also accepted thus allowing them to be excluded
from the duty.
The Commission has since received requests from two US exporters
to review the duty as it applied to them and from one EEC consumer
for a general review of the duty.
The Commission, after consultation, re-opened the procedure and
commenced its investigation. This investigation showed that
there was, in fact, renewed dumping with the following margins:
                               %
Arco Chemical Co              2
Exxon Chemical Co             9.55
Koch Ch«nicall°               **
Phillips Petroleum            0
Sun Refining & Marketing Co    1.8
Tenneco Oil                   0
Certain exporters representing 34% of US exports to the Community
either did not co-operate in the investigation or did not make
themselves known to the Commission and for these companies the
Commission considered it would be a bonus for non-cooperation to
determine a dumping margin below the 14.47% determined in the first
invest igation.
It was also established that the Community producers were suffering
renewed material injury which was likely to worsen if the duty or the
undertakings were not maintained.
It is considered to be in the Community's interest that the duty and
undertakings continue to apply. The two US exporters who requested
the review have offered undertakings to respect the normal value. These
are considered acceptable.
Member States have been informed of these proposals in the Anti-dumping
Committee and    are     in agreement with them.
 ---pagebreak---                                  Proposal for a
                             COUNCIL REGULATION (EEC)
        amending Régulâtion(EEC) No 2761 /81 imposing a definitive anti-dumping
        duty on o-xylene (orthoxylene) originating in Puerto Rico and the
                        United States of America
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
                  Ccur.ci l
raving regard to;Regulation(EEC)No 3017/79 of 20 December 1979 on protection
against dumped or subsidised imports from countries not members of the
European Economic Communityd) as amended by Regulation (EEC) No 1580/82 (2),
and in particular Article ^2 thereof.,
Having regard to the proposal submitted by the Commission after consultation
within the Advisory Committee provided for under the above Regulation,
Whereas the Council, by Regulation (EEC) No 2761 /8K3), imposed a definitive
anti-dumping duty of 14,47% on imports of o-xylene/originating in Puerto Rico
and the United states of America; whereas the rate of duty for the Sun
Petroleum Products Company was 10,73%; whereas five exporters were excluded
from the duty as they gave voluntary undertakings to increase their prices to levels
which eliminated dumping; whereas one exporter was exempted from the duty since sales
to the Community made during the investigation period were not            dumped;
Whereas this Regulation was subsequently amended by            Regulation (EEC)
          , (5)
No 3493/8/1 which specified the rate at which a certain provisional duty
should be definitively collected;
Whereas the Commission has since received requests from two United States
companies to review the duties insofar as they apply to them and from one
European Community consumer requesting a general review of the duty;
(1) 0J No L 339, 31 .12.1979, p. 1,
(2) 0J No L 178, 22.6.1982, p. 9.
(3) 0J No L 270, 25.9.1981, p. 1,
(4) NIMEXE code 29.01-65.
(5) 0J No L 353, 9.12.1981, p. 1.
 ---pagebreak---                             -  2 -
 Whereas,since the said requests provided sufficient evidence to justify
 a review of the proceeding, the Commission             announced by a
 notice published in the Official Journal of the European Communities(1)
 a review of the definitive anti-dumping duty on imports of o-xylene
 originating in Puerto Rico and the United States of America and commenced
 an investigation of the matter at Community level;
 Whereas the Commission officially so advised the exporters and importers
 known by it to be concerned as well as the representatives of the exporting
 country and the complainants;
 Whereas the Commission has given the parties directly concerned the
 opportunity to make known their views in writing and to be heard;
 Whereas certain of the exporters known to be concerned and some importers
 took this opportunity to present written and oral observations; whereas,
 however, several traders and dealers failed to respond to the Commission's
 invitation to make known their views;
 Whereas the Commission sought and verified all information it deemed to be
 necessary for the purposes of the review procedure and carried out
 investigations at the premises of the following:
 EEC producers : Total Chimie, Paris
                  Veba 01, Gelsenkirchen
                  Shell Chemical, London
     exporters:   Arco Chemical Co, Philadelphia, Pennsylvania
                  Exxon Chemical Co., Darien, Connecticut
                  Koch Chemical Co., Wichita, Kansas
                  Phillips Petroleum Chemicals, Overiise on behalf of International
                  Petroleum Sales Inc., Panama, Phillips Paraxylene Inc., Puerto
                  Rico and Phillips Puerto Rico Core Inc.
                   Sun Refining and Marketing Co and Sunoco Overseas Inc. Philadelphia,
                  Pennsylvania
                  Tenneco Oil, Houston, Texas
(1) OJ No C 124, 15.5.1982, p. 3,
 ---pagebreak---                                                          -   3    -
   The     fo llo w in g      co m p a n ie s     a ls o    made       in fo rm a tio n       a v a ila b le     at   th e     C o m m is s io n 's
   o ffic e s      in   B ru s s e ls :
    lo n te d ip e ,    Mi l a n
   A lu s u is s e     Ita lia      SpA,     M ila n
   P e cte n     C h e m ica ls     In c ,    H o u sto n ,    Texas
   BASF,       L u d w ig s h a fe n
   W hereas       th e    C o m m issio n       s e le c te d    th e     la s t   q u a rte r     of    1981     and     th e    fir s t     th re e
   q u a rte rs     of    1982      as    th e    rfe le v a n t     in v e s tig a tio n      p e rio d ;
   W hereas       norm al       v a lu e s   were      e s ta b lis h e d      by     ta k in g    th e    w e ig h te d    average
  q u a rte rly       p ric e s     of   th e     re s p e c tiv e      d o m e s tic    s a le s    of    th e   co m p a n ie s     concerned;
  w hereas        th e se     w e ig h te d    average         p ric e s      flu c tu a te d      by    q u a rte r    and     had
  g e n e ra lly      d e c lin e d     in   1982;
   W hereas        in   e s ta b lis h in g       th e   p r o fita b ility          of    th e    d o m e s tic    s a le s ,    e v id e n c e
  was      s u b m itte d     w h ic h    s a tis fie d      th e      C o m m issio n     th a t    s a le s   g e n e ra lly      had
  not     been      at    a   lo s s .
   W hereas       e xport      p ric e s     were      d e te rm in e d      on    th e    b a s is    of    th e   p ric e s     a c tu a lly    p a id
  or    p a y a b le    fo r   th e    p ro d u cts      e x p o rte d      to   th e    C o m m u n ity     d u rin g    th e   p e rio d
  of     in v e s tig a tio n ;
  W hereas        in    c o m p a rin g    norm al       v a lu e     w ith    e xport       p ric e s     th e   C o m m issio n       to o k
  account         w h e re -a p p ro p ria te        of    d iffe re n c e s       a ffe c tin g       p ric e    c o m p a ra b ility         such   as
d iffe re n c e s        in   tra n s p o rt,       h a n d lin g ,      lo a d in g    and     a n c illa ry      c o s ts ;   w hereas        a ll
c o m p a ris o n s      were     made      at     FOB    le v e l;
  W hereas        th e    above      e x a m in a tio n      of     th e   fa c ts     showed        th a t   th e se     co m p a n ie s    w h ic h
  had     g iv e n    u n d e rta k in g s     a fte r     th e     o rig in a l     in v e s tig a tio n       had     re sp e cte d      th e
  te rm s     of    th e ir    u n d e rta k in g s      but     th a t,     in    some      cases,       th e    in c re a s e        0f
 p r i c e s o n t h e i r US d o m e s t i c m a r k e t m e a n t t h a t d u m p i n g h a d                               resum ed;         w hereas
t h e d u m p in g m a rg in s v a r y a c c o r d in g t o th e e x p o r t e r ; w h e re a s                       th e     w e ig h te d    average
m a rg in      fo r    each     of    th e    e x p o rte rs      c o o p e ra tin g      in    th e    in v e s tig a tio n      was:
             A rco     C h e m ica l    Co                                           2%
             Exxon      C h e m ic a l    Co                                         9,55%
             Koch      C h e m ic a l   Co.                                          4%
             P h illip s      P e tro le u m                                         0%
             Sun     R e fin in g     & M a rk e tin g        Co.                    1,8%
             Sunoco       O verseas         In c                                     No     s a le s
             Tenneco        O il                                                     0%
 ---pagebreak---                                                                -   4
       -   As    P ecten        C h e m ic a ls    In c .    export        s a le s    are    made     v ia     in te rn a tio n a l        brokers
           th e     company         was    u n a b le    to     id e n tify      s a le s   to   the     C o m m u n ity;
       W hereas        fo r     th o s e   e x p o rte rs      wh o   n e ith e r     re p lie d     to    the     C o m m is s io n 's
       q u e s tio n n a ire        nor    made      th e m s e lv e s     known      o th e rw is e     in    th e    course        of    th e    re v ie w
      i n v e s t i g a t i o n a n d wh o a r e          e s tim a te d to a ccount f o r                34% o f       th e     e xp o rts     concerned,
     t h e C o m m issio n c o n s id e r e d             t h a t i t w o u ld c o n s t i t u t e
       a   bonus       fo r     n o n -c o o p e ra tio n      to    assume       th a t   th e   du m p in g m a rg in f o r th e s e
                                                                                                     o f 14,47%
       e x p o rte rs       was     any     lo w e r   than      th e    dum ping       m a rg in /d e te rm in e d w ith re g a rd
       to    them      fo llo w in g       the     o rig in a l      in v e s tig a tio n ;
       W hereas,         w ith      regard       to    th e    in ju ry      caused       by   th e    dumped        im p o rts       the
       e v id e n c e    a v a ila b le      to    th e     C o m m issio n      shows     th a t    im p o rts      in to      th e
       C o m m u n ity      fro m     P u e rto    R ico     and     th e    U n ite d    S ta te s    of    A m e ric a      of    o -x y le n e
       w h ic h    fe ll      a fte r    th e    im p o s itio n       of   th e    p ro v is io n a l     and     d e fin itiv e         d u tie s
       in    1981      w ere      lik e ly      to    in c re a s e     in    1982     to   th e    same      le v e l    as     th e y    had    been at       in
        1979;
       W hereas        th e     s e llin g     p ric e s     of    th is     product        in   th e     C om m unity         in   most
       ca se 's    do    not      - a llo w     C om m unity       producers           to   cover       th e ir     co sts       or    to    have
       -a r e a s o n a b l e     p ro fit;
       W hereas        th e     consequent           im p a c t    on    th is     C om m unity      in d u s try      has      been      a   fa ll    in
    p ro d u c tio n        of    10%     from     1981       to   1982,       a   re d u c tio n    of     11%     in    c a p a c ity     u tiliz a tio n
    in     th e     same      p e rio d     and    an    a c c e le ra tin g       lo s s -m a k in g    tre n d      in    1982;
       W hereas        as     regards         in ju ry         th e    C om m ission       has     re c e iv e d     no    new     e v id e n c e
                                                                                                                                                and th e m a in t e n -
       to    a lte r      its     v ie w   th a t    th e c o n tin u e d      a p p lic a tio n     of    th e    e x i s t i n g d u t y _ / Y a n c e 0 f p r -jc e
was    a   re q u ire m e n t       fo r   the     e lim in a tio n        of    in ju ry    and     th e    p re v e n tio n      of     its    V n d e r t a k in g s
       re cu rre n ce ;         w hereas       th e    v o la tile       p ric e    m ovem ents        in    recent        q u a rte rs
 ---pagebreak---                                                                      - 5 -
                  and      th e    c o n tin u in g         depressed            sta te      of   b o th      th e    U n ite d    S ta te s      and    EEC     m a rke ts
                  suggest          th a t     any      rem oval         of     th e    e x is tin g      d e fin itiv e        d u ty    or
                  w ith d ra w a l       o-f     u n d e rta k in g s           m ig h t                    le a d
                  th e     e x p o rte rs        concerned            to     e xport       s u rp lu s      in v e n to ry      to   th e     EEC     th e re b y
                  in c re a s in g        th e     in ju rio u s         consequences              fo r    th e     C om m unity        in d u s try ;
                  W hereas          C om m unity          p ro c e s s in g      in d u s trie s       have       argued        th a t    th e
                   c o n tin u a tio n         of    p ro te c tiv e         m easures         w o u ld     not     be    in    th e    C om m unity
                   in te re s t       because           it    w o u ld     make      th e m    le s s     c o m p e titiv e ;       w hereas,         in
                   v ie w    of     th e     p a rtic u la rly           s e rio u s     d iffic u ltie s           fa c in g     th e    C om m unity
                   in d u s try       th e     C o m m issio n         has,      n e v e rth e le s s ,        come     to    th e    c o n c lu s io n
                   th a t     it    is     in    th e      C o m m u n ity 's       in te re s ts      th a t     d e fin itiv e        m easures         be
                   c o n tin u e d      p a rtic u la rly            in    vie w     of    th e    fa c t      th a t   th o se     e x p o rte rs
                   who      c o o p e ra te d       in     th e    c o m m is s io n 's       in v e s tig a tio n        and     who      s u b s e q u e n tly
                   o ffe re d       p ric e       u n d e rta k in g s       o n ly     account         fo r     66%    of    u .b .    e x p o rts
                   to    th e      C om m unity;
                                                                                  ps
                    W hereas         a c c o rd in g ly        th e    fa c ts      fin a lly       e s ta b lis h e d       show      th a t    th e re
                    is   dum p in g        and      in ju ry       caused         th e re b y    and      th e     in te re s ts       of    th e
                    C om m u n ity       c a ll     fo r     th e    m a in te n a n c e      of    th e     e x is tin g     d e fin itiv e
                    a n ti-d u m p in g         d u ty     on    o -x y le n e      o rig in a tin g         in    P u e rto     R ic o    and
                    th e    U .S .A .;
                    W hereas         th e     e x p o rte rs       concerned            w ere     in fo rm e d       of    th e    m a in    fin d in g s
                    of    th e        re v ie w          ,                                            and       com m ented        on    th e m ;    w hereas
                    th e se      c o m p a n ie s      w h ich     had      o ffe re d      u n d e rta k in g s       in    th e      o rig in a l
                    p ro c e e d in g       v o lu n te e re d        to    renew       th e m    at    a    le v e l    c o n s id e re d      necessary          to
it renew ed i n j u r y t c      /C o m m u n ity         in d u s try ;      w hereas        th e     Koch       C h e m ic a l   Company
                    a ls o     v o lu n ta rily           u n d e rto o k     to     re sp e ct      a   m inim um       p ric e     fo r     its    e x p o rts ;
 ---pagebreak---                                                     -    6   -
   W hereas        th e    e ffe c t     of   th e     s a id     u n d e rta k in g s       w ill   be     to    m a in ta in
   im p o rt     p ric e s     at    the     Level       necessary             to    prevent        in ju ry ;      w hereas
   th e se     u n d e rta k in g s      in   no    case        exceed         the     d um ping     m a rg in ;
   W hereas        th e     C o u n c il        has,      th e re fo re ,          d e te rm in e d    th a t     im p o rts     of
  o -x y le n e      e xp o rte d     by    A rco      C h e m ica l       C o.,       Lxxon      C h e m ica l     C o .,   Koch
  C h e m ic a l     C o .,   P h illip s         P a ra x y le n e       In c .,     P h illip s      P u e rto      R ic o   C ore
   In c .,         In te rn a tio n a l       P e tro le u m        S a le s    In c .,
                                Sunoco        O verseas          I n c . , and       Tenneco        O il    s h o u ld    be
  e x c lu d e d     from     th e    a p p lic a tio n        of    th e     d u ty ;
W hereas        th e    Sun     R e fin in g     & M a rk e tin g           Company,          successor          to     th e   Sun
P e tro le u m      P ro d u cts      Company,          d e c lin e d       to    o ffe r     v o lu n ta ry     u n d e rta k in g s
to     respect        m inim um       p ric e s    fo r     its      e x p o rts      and     th e re    i s t h e r e f o r e no
                                                                                                      /g e n e ra l
reason        fo r    th e s e    c o m p a n ie s    to    be     e x c lu d e d     fro m     th e a p p lic a t io n o f
th e    d u ty ;
    W hereas        th e    C o m m o n w e a lth     O il     R e fin e ry       Co.     In c .,    w h ic h     was    p re v io u s ly
    e x c lu d e d    from     the     d e fin itiv e          d u ty ,     is    now     out    of    b u s in e s s    and     re fe re n c e
    to    th a t    company        s h o u ld ,    th e re fo re ,          be    d e le te d    fro m     th e     lis t    of
    e x c lu s io n s ,
    HAS ADOPTED            T H IS    REGULATION:
                                                       A rtic le         1
   A rtic le       1   (2)     and     (3)    of     R e g u la tio n        (EEC)       No    276 1 /8 1     are     hereby
    re p la c e d     by    th e    fo llo w in g :
   "2.        The      d u ty    s h a ll   not     a p p ly      to    o -x y le n e      e x p o rte d    by:
             A rco     C h e m ica l     Company
             P h illip s      P a ra x y le n e      In c .,      In te rn a tio n a l         P e tro le u m     S a le s    In c .,   Panama
            and P h i l l i p s       P u e rto     R ic o      Core       In c .,     members        of    th e    P h illip s      P e tro le u m
            G roup,
             Tenneco         O il    Company
             Exxon       C hem ical        In te rn a tio n a l         S u p p ly     SA
             Sun.oco         O verseas        In c .    and       Sun      In te rn a tio n a l         In c .
            Koch      C h e m ic a l    Company
  "3.       The      ra te    of    th e    d u ty    s h a ll     be      14,47%        on   th e   b a s is     of    th e    custom s
            v a lu e    d e te rm in e d      in    accordance               w ith     th e    p ro v is io n s      in    fo rc e   w ith
             re g a rd     to    custom s       d u tie s ."
 ---pagebreak---                                        A rtic le     2
T h is   R e g u la tio n    s h a ll   e n te r   in to  fo rc e  on   th e  day   fo llo w in g    its
 p u b lic a tio n    in   th e    O ffic ia l     Journal     of  th b   E uropean     C o m m u n itie s .
 T h is   R e g u la tio n    s h a ll  be    b in d in g  in  its   e n tire ty   and   d ire c tly
 a p p lic a b le   in    a ll   Member       S ta te s .
 Done     at   B ru s s e ls                                             For  th e  Counci l