CELEX: 51987PC0136
Language: en
Date: 1987-03-31
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on certain imports of outboard motors originating in Japan (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 136
Vol. 1987/0056
 ---pagebreak--- Disclaimer
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la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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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), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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2015/444    vom   13.   März   2015   über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(87 ) 136 final
                                               Brussels , 31 March 1987
                                                                        /
                                 Proposal for a
                            COUNCIL REGULATION ( EEC )
       imposing a definitive anti-dumping duty on certain imports of
                    outboard motors originating in Japan
                        ( presented by the Commission )
 C0M(87 ) 136 final
 ---pagebreak---                                     EXPLANATORY MEMORANDUM
                                                                          c &ji- /l c
1 . On 26 November 1985 , the Commission reopened by Notice in Official Journal No       (
305 the anti-dumping investigation concerning outboard motors up to 85HP originating
in Japan following a request for review lodged by Community producers representing a
major proportion of the Community production of outboard motors .
2. Following this an investigation took place which included visits to the premises
of the Japanese exporters concerned , their subsidiary importing organisations in the
 Community , other importers including OEMs ( Original Equipment Manufacturers which
                 ^Outboard motors.
sell importedN^/' under their own brand name) and the Community producers .
3 . The Commission found that during the investigation period by far the largest of
the Community producers ceased producing outboard motors of above 18.5 kW (25 hp) . It
was , however , considered reasonable for the present investigation to cover outboard
motors of up to 26 kW (35 hp) , since those motors closely resemble the 18.5 kW
outboard motors with regard to motor capacity , design , weight and technical features .
4 . The investigation of dumping was carried out by comparing the normal value , based
on either the domestic prices ( in the case of Yamaha and Honda) or the constructed
value ( in the case of Suzuki and Tohatzu ) determined by adding the cost of production ,
 including a reasonable amount for selling , administrative and other general expenses ,
and a reasonable margin of profit , with the export prices determined by the
 Commission on the basis of the prices actually paid or payable for the products sold
for export to the Community or where exports were made to subsidiary companies in the
 Community the constructed export prices at exworks level on the basis of the prices
at which the imported product was first resold to an independent buyer in the
 Community .
These comparisons showed weighted average dumping margins varying between 16,2 and
53,2% .
 5 . The Commission accepted by Decision of 5 September 1984      , price undertakings by
most of the exporters concerned with a view to eliminating the injury . For all other
 exporters a definitive anti-dumping duty was imposed by Council Regulation ( EEC ) No
2809 / 83 .
The Commission found that , while these measures contributed to an improvement of the
 position of the Community producers of outboard motors in 1984, the situation of this
 industry deteriorated again in 1985 . It is still characterised by low capacity
 uti li ssation , considerable losses and high import penetration .
 ---pagebreak--- 6 . The imports of outboard motors from Japan have increased by 21% from 46 654 units
in  1934 to 56 577 units  in 1985 .
In the same time the market shares of the Japanese exporters increased from 36,5% in
1984 to 41,2% in 1985 .
As a consequence , the Community outboard motor industry has continued to incur
Losses , which increased , in particular , in 1985 . Furthermore , employment in this
industry has decreased by another 7% from 1983 to 1985 and declined by another 20%
due to dismissals already notified to personnel during the investigation period .
7 . During the course of its investigation the Commission received submission from two
associations representing boat builders in two of the Member States . Those
submissions warned , in general terms , against the negative effects on the boat
building industry of any price increase for outboard motors .
 In weighing these arguments , which remained unsubstantiated for the most part , with
the serious difficulties still facing the Community outboard motor industry it is in
the Community 's interest that action be taken .
8 . The exporters concerned were informed of the main findings of the investigation
and commented on them . Undertakings were subsequently offered by them which the
Commission intends to accept .
9 . In the light of the above determination of the facts and in view of the
possibility that exports of the product concerned to the Community might be taken up
by exporters not presently covered by undertakings , it is proposed to retain the
definitive duty introduced by Council Regulation ( EEC ) No 2909 /83 . The investigation
has shown that in order to allow Community producers a reasonable return on their
sales of outboard motors , price increases of up to 22% are necessary for outboard
motors exported to the Community from Japan . Consequently it is proposed       that the
 rate of the definitive duty should remain at 22% of the CIF price , duty unpaid but
should apply to outboard motors of up to 26 kw 05 hp) only .
The Anti-Dumping Committee is in favour of this proposal .
 ---pagebreak---                              Proposai for a
                      COUNCIL REGULATION ( EEC )
                      imposign a definitive
anti-dumping duty on certain imports of outboard motors originating in
Japan
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation ( EEC ) No 2176 /84 of 23 July 1984 on
protection against dumped or subsidized imports from countries not members
of the European Economic Community1 , and in particular Article 14 thereof ,
Having regard to the proposal from the Commission , submitted after consul­
tations    within   the   Advisory     Committee   as    provided  for  by  the above
Regulation ,
Whereas,
                                       A.  PROCEDURE
1.   On 26 November 1985 , the Commission reopened the anti-dumping investi­
gation concerning outboard motors originating in Japan following a request
for review lodged by Community producers representing a major proportion of
the Community production of outboard motors ^.                The request for review
contained evidence      of  renewed    dumping and     renewed  injury caused thereby
which was considered sufficient to warrant the reopening of the investiga­
tion . The products    referred to in the request for revieware outboard motors
up to and including 63 kW ( 85 hp) falling within subheading ex 84.06 B of
the   Common   Customs Tariff ,     corresponding     to NIMEXE codes 84.06-10 and
ex 84.06-12 .
2.   The Commission officially so advised the exporters and importers known
to be concerned , the representatives of the exporting countries and the
complainant and gave the parties directly concerned the opportunity to make
known their views in writing and to request a hearing .
 ---pagebreak---                                          - 2 -
All but one of the Community producers , the exporters concerned and some
importers as well as two associations representing boat builders and users
made their views known in writing .       In addition , one Community producer and all
the exporters concerned requested , and were granted , a hearing .
3.    The   Commission    sought   and  verified   all  information  it  consi dered
necessary and carried out investigations at the premises of the following :
EEC producers :
            Outboard Mari  ne Belgium S.A. , Bruges , Belgium
            Outboard Mari  ne Deutschland GmbH , Mannheim , Germany
            Outboard Mari  ne France , Paris , France
       -    Outboard Mari  ne UK , Northampton , United Kingdom
            Selva SpA, Ti rano , Italy
Exporters :
       -    Honda Motor Co , Tokyo , Japan
            Suzuki Motor Co , Hamamatsu , Japan
            Tohatsu Corporation , Tokyo , Japan
            Yamaha Motor Co , Hamamatsu , Japan
Importers :
            Honda Deutschland GmbH , Offenbach , Germany
            Marine Powei–Europe Ine ., Verviers , Belgium
            Suzuki Deutschland GmbH , Heppenheim , Germany
            Yamaha Motor Europe NV, Uithoorn , Netherlands
            Yamaha Motor France , Paris , France
            Yamaha Motor Netherlands, Uithoorn , Netherlands
            Mitsui Machinery Sales ( UK ) Ltd , Chessington , United Kingdom
The   investigation    of   dumping    covered   the   period from  1   January   to
31  October 1985 .
 ---pagebreak---                            B.   SCOPE OF THE INVESTIGATION
4.     The Commission found that during the investigation period by far the
 Largest of the Community producers ceased producing outboard motors of
above 18.5 kW (25 hp) .      The only other complainant Community producer
produces     relatively   small  quantities    of   outboard  motors of  more  than
18.5 kW and in 1985             accounted for less than 5% of total Community
production of such motors . The Commission , consequently, did not find it
appropriate to cover in its investigation outboard motors of up to 63 kW
 ( 85 hp) as was requested in the application for review .
5 . It was , however , considered reasonable for the present investigation to
cover outboard motors of up to 26 kW (35 hp), since those motors closely
resemble        18.5 kW outboard motors with regard to motor capacity, design ,
weight and technical features
6.    This limitation of the scope of the investigation may be confirmed
( cf . also recital 29 ).
                                    C.   NORMAL VALUE
7.    For Honda Motor Co and     Yamaha Motor Co the Commission established the
normal value on the basis of domestic prices actually paid or payable in
the ordinary course of trade for the like product , since these prices were
shown to be profitable .
8.     For Suzuki Motor Co and Tohatsu Corporation the Commission determined
the normal value on the basis of constructed value , since the sales of
these two companies on the domestic market did not provide a sufficient
basis    for  the   calculation   of   normal  value .   The constructed value  was
determined by adding the cost of production , including a reasonable amount
for selling , administrative and other general expenses , and a reasonable
margin of profit .
                                    D.   EXPORT PRICE
9.     Export prices were determined by the Commission on the basis of the
prices actually paid or payable for the products sold for export to the
Community .
 ---pagebreak---                                         - 4 -
10 .   Where exports    were made   to    subsidiary   companies     in   the Community
the Commission constructed the export prices on the basis of the prices at
which   the   imported  product   was   first   resold   to   an  independent     buyer ,
suitably adjusted to take account of all costs incurred between importation
and resale including customs duty , and of a profit margin of 5% considered
reasonable in the light of the profit margins of independent importers of
the product concerned .
                                   E.    C0MPARIS0N
11 .   In comparing normal value with export           prices the       Commission took
account , where appropriate , of differences affecting price comparability ,
in particular discounts and rebates , credit terms , transport , insurance ,
handling ,   packing   and   salesmen 's   salaries .      Due   allowance    for   such
differences was made where claims in these areas could be satisfactorily
demonstrated .    All comparisons were made at ex-works level and for each
individual transaction .
                                    F.    MARGINS
12 .  The above examination of the facts shows the existence of dumping in
respect of all exporters involved , the margin of dumping being equal to the
amount by which the normal value as           established exceeds the price          for
export to the Community .
13 .     These   margins   vary   according    to   the   exporter ,     the  importing
Member State and the type of outboard motor concerned , the weighted average
margin for each of the exporters investigated being as follows :
            Honda Motor Co :        16.2%
       -    Suzuki Motor Co :       51.6%
            Tohatsu Corporation :   43.3%
            Yamaha Motor Co :       53.2%
14 .    The above findings with regard to dumping may be confirmed .
 ---pagebreak---                                           - 5 -
                                       G.   INJURY
15 . In 1983 , after having carried out an anti-dumping investigation , the
Commission , by Regulation ( EEC ) No 1500 /833, established that dumped
imports of outboard motors originating in Japan had caused injury to the
Community industry concerned and that protective measures were necessary .
                                                           4)
The Commission subsequently, by Decision 83 / 452 / EEC       ,           accepted
undertakings by most of the exporters concerned with a view to eliminating
the injury by voluntary price increases for the exported products . For all
other exporters a definitive anti-dumping duty was imposed by Council
Regulation ( EEC ) No 2809 /835 .
16 .    The   Commission  found that ,   while  these measures  contributed  to -•an
improvement of the position of the Community producers of outboard motors
in 1984, the situation of this industry deteriorated again in 1985 .          It is
still characterised by low capacity utilisation , considerable losses and
high import penetration .
17 .   With    regard to the renewed injury caused by the dumped imports the
evidence available to the Commission shows , more specifically , that imports
of outboard motors into the Community from Japan fell from 67 204 units in
1983 to 46 654 units in 1984, but increased again to 56 577 units in 1985 .
Thi s resurgence represents an increase of 21% in one year .
18 .    At   the  same time ,       consumption of outboard motors within the
Community fell from 161 209 units in 1983 to 127 959 units in 1984, but
 increased again to 137 465 units in 1985, i.e. by 7.4% .        Consequently, the
market share in the Community held by outboard motors imported from Japan ,
 having fallen from 41.7% in 1983 to 36.5% in 1984, went up again to 41.2%
 in 1985 .
30 J No L 152, 10.06.1983, p. 18 .
*0J No L 247, 07.09.1983, p. 18 .
 50J No L 275, 08.10.1983, p. 1 .
 ---pagebreak---                                         - 6 -
19 .   The market share held by Community producers of outboard motors during
that three year period went up from 50.3% to 53.4% but decreased again to
53.2% .
20 .   With regard to the prices at which the dumped imports from Japan were
sold within the Community during the investigation period , clear cases of
price undercutting were found in some instances only . It was found that in
view of the fact that imports from Japan were regaining market share the
Community industry was unable to raise their prices above the price levels
set out in the undertakings accepted in 1983 .        From    1984, however , these
prices    proved   to  be   insufficient    to  substantially   remedy  the   injury
suffered by the Community producers .
21 .   As a consequence , the Community outboard motor industry           continued
to incur losses , which increased , in particular , in 1985 .          Furthermore ,
employment in this industry            decreased by another 7% from 1983 to 1985
and declined by another 20% due to dismissals already notified to personnel
during the investigation period .
22 .   The Commission        considered whether injury has been caused by other
factors , in particular the volume of imports of outboard motors from other
third countries .     It was found , however , that those imports declined from
12 964 units in 1983 to 7 612 units in 1985 with a consequent reduction in
market share from 8% to 5.6% .        The Commission , therefore , determined that
the effects of the dumped imports of outboard motors originating in Japan ,
taken in isolation , have to be considered as constituting material injury
to the Community industry concerned .
23 .   The above findings of the Commission with regard to injury may be
 confirmed .
                                H.  COMMUNITY INTEREST
 24 .    During  the   course   of  its   investigation  the   Commission   received
 submissions from two associations representing boat builders in two of the
 Member States .     Those submissions warned , in general terms, against the
 negative effects on the boat building industry of any price increase for
outboard motors .
 ---pagebreak---                                            - 7 -
25 .   The Commission asked both associations to further substantiate their
arguments, in particular with regard to exact figures relating , e.g. to
price increases for boats , the development of price ratios between boats
and outboard motors as well as financial losses and reduction in employ­
ment .    The subsequent replies did not provide such figures , but only
reiterated the general concern and pointed to the adverse effect of protec­
tive measures on importers and dealers of outboard motors .
26 .   In weighing these arguments , which remained unsubstantiated for the
most part , against the serious difficulties        still facing the Community out­
board motor industry the Council has come to the conclusion that it is in
the Community 's interest that action be taken .
                                    I.   UNDERTAKINGS
27 .   The exporters concerned were informed of the main findings of               the
investigation    and   commented     on   them .     Undertakings  were   subsequently
offered by Honda Motor Co , Suzuki Motor Co , Tohatsu Corporation , including
undertakings offered by Marine Power Europe Inc and Nissan Motor Nederland BV on
behalf of Tohatsu Corporation , and Yamaha Motor Co , including an under­
taking by Marine Power Europe Inc on behalf of Yamaha Motor Co .
These    undertakings,   which    provide     for   price   increases   sufficient  to
eliminate    injury   to   the   Community       industry,   have  been  accepted   by
Commission Decision .../../ EEC^.
6QÜ NO L
 ---pagebreak---                                           - 8 -
                                  J.   DEFINITIVE DUTY
28 .   In the Light of the above determination of the facts and in view of
the  possibility    that   exports of    the   product     concerned   to the   Community
might be taken up by exporters not presently covered by undertakings , the
Council finds it appropriate to retain the definitive duty introduced
by        Regulation ( EEC ) No 2809 /83 .     The investigation has shown that in
order to allow Community producers a reasonable return on their sales of
outboard motors , price increases of up to 22% are necessary for outboard
motors exported to the Community from Japan .                Consequently , the Council
determines that the rate of the definitive duty should remain at 22% of the
CIF price , duty unpaid .
29 .    Following a   reduction in the model         range produced by the Community
industry ,    the scope    of   the  present   investigation       has  been  limited  to
outboard motors of      up to 26      kW  (35 hp)     as set out     in recitals 4 to 6
above .   Therefore the definitive duty should apply to outboard motors of up
to 26 kw (35 hp) only .
30 .  In view of the new facts established during the present investigation ,
Regulation              ( EEC )  No  2809 /83  should    be   replaced   by this
Régulation .
HAS ADOPTED THIS REGULATION :
                                           Article 1
1.   A definitive anti-dumping duty is hereby imposed on imports of outboard
     motors up to and       including 26 kU      (35   hp)   falling within    subheading
     ex 84.06 B of the Common Customs Tariff , corresponding to NIMEXE codes
     84.06-10 and ex 84.06-12 , originating in Japan .
2.   The amount of the duty shall be equal to 22% of the CIF price , duty
     unpaid .
 ---pagebreak---                                         - 9 -
3.  Imports of outboard motors manufactured and exported by Honda Motor
    Company Ltd , Suzuki Motor Co Ltd , Tohatsu Corporation , including
    outboard motors imported under the brand names Mercury and Nissan , and
    Yamaha Motor Company Ltd , including outboard motors imported under the
    brand name Mariner , are excluded from the scope of the         anti-dumping
    duty .
4.  The provisions in force concerning customs duties shall apply .
                                        Article 2
         Regulation ( EEC ) No 2809 / 83 is hereby repealed .
                                        Article 3
This Regulation shall enter into force on the day 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                                                   For the Council ,