CELEX: 51982PC0127
Language: en
Date: 1982-03-11
Title: Proposal for a COUNCIL DECISION (EEC) terminating an anti-dumping proceeding in respect of imports of upright pianos originating in Czechoslovakia, the German Democratic Republic and Poland (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 127
Vol. 1982/0044
 ---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(82)127 final
:                                                          Brussels - 11 March 1982
                                 Proposal for a
                            COUNCIL DECISION ( EEC )
   terminating an anti-dumping proceeding in respect of imports of upright
   pianos originating in Czechoslovakia , the German Democratic Republic and
                              ,       Poland
                                      Poland     ?  ■ if]
                                                  x  >
                                            c • , ^  • OJ
                           V \
                                     s»  ».   ^        /
                                \/
                ( submitted to the Council by the Commission )
                                                         .           ■                                                   ;
  COM(82)127 final
                                                                                    . · 1 ;Λ:Λίνΐν -.            ;. ·ί
                                                                                                    \ '>v .
                                                                              . ·· * ·.·                        ·.· ,/
                                                                                                            • .    ·   'ί
                                                                                                                       t
                                                                                              ' : :             • 4
                                                                                                                    . .1
 ---pagebreak---                         EXPLANATORY MEMORANDUM
1.   In February 1981 the Commission initiated an anti-dumping proceeding
against imports of upright pianos from the German Democratic Republic and
       1
Poland .    This proceeding was subsequently extended to cover in addition
                                                              2
imports of upright pianos from Czechoslovakia and the USSR „        t
2.  The Commission 's investigation has established the existence of dumping
margins from mid-1980 to September 1981 ranging from 14% to 43% ( depending
on model ) for Czechoslovakia , the German Democratic Republic and Poland ,
and from 56% to 80% for the USSR .     In determining these dumping margins ,
the Commission took as normal value the average export price to the Community
of comparable Finnish pianos , adjusted as deemed appropriate for differences
in physical characteristics .
3.  The Commission^ investigation also shows that imports of these dumped
pianos , through the increase in their already predominant share of the
market for low-priced beginners' pianos , and through their undercutting of
Community producer 's prices , have caused material injury to those Community
producers engaged in this sector of the market , whose market share , level
of production and profitability have suffered significant reverses .
4.  The exporters in Czechoslovakia , the German Democratic Republic and
Poland have voluntarily undertaken to raise their prices to levels which
the Commission considers adequate to eliminate the margins of dumping or
the injurious effects thereof .
5.   However , when the Advisory Committee was consulted on the acceptance
of these undertakings , opinions were divided as to whether protective measures
were called for .    The Commission has consequently decided to put the issue
before the Council by submitting , in accordance with Article 9(1 ) and 10(1 )
of Regulation ( EEC ) No 3017/ 79^, the attached proposal for the termination
of the proceeding on the basis of the acceptance of the undertakings
offered .
 0J No C    35 , 18.02.1981 , p . 2
20J No C 181 , 23.07.1981 , p . 3
30J No L 339, 31.12.1979, p . 1
 ---pagebreak---                         PROPOSAL FOB A
                 COUNCIL DECISION   ( EEC )
terminating an anti-dumping proceeding in respect of imports of upright
pianos originating in Czechoslovakia , the German Democratic Republic and Poland
THE  COUNCIL    OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) N° 3017 / 79 of 20 December 1979
on protection against dumped or subsidized imports from countries not
                                            1
members of the European Economic Community , and in particular Article
10         thereof,
Having regard to the proposal submitted by the Commission after consultations
within the Advisory Committee set up under Regulation ( EEC ) N° 3017 / 79 ,
Whereas in September 1980 and June 1981 the Commission received complaints
lodged by the Confederation des Associations des Facteurs d' Instruments de
Musique de la CEE ( CAFIM ) on behalf of manufacturers accounting for the
major part of the Community production of upright pianos ;
Whereas since the former complaint provided sufficient evidence of dumping
in respect of the like product originating *^ the German Democratic Republic
and Poland, and of material injury resulting therefrom, the Commission
accordingly announced , by a notice published in the Official Journal of the
                      2
European Communities , the initiation of a proceeding concerning imports of
upright pianos originating in the German Democratic Republic and Poland and
commenced an investigation of the matter at Community level ;
Whereas , since the latter complaint provided sufficient evidence of dumping
in respect of the like product originating in Czechoslovakia and the USSR ,
and of material injury resulting therefrom, the Commission accordingly
announced , by a notice published in the Official Journal of the European
Communities^, the extension of the above investigation to upright pianos
originating in Czechoslovakia and the USSR ;
 0J N° L 339 , 31.12,1979 , p.  1
20J N° C 35, 18.02,1981 , p. 2
30J N° C 181 , 23,07.1981 , p. 3
 ---pagebreak---                               - 2 -
Whereas the Commission officially so advised the exporters and importers
known to be concerned , as well as the exporting countries and the
complainants ;
                     '
Whereas the Commission has given all parties directly concerned the
opportunity to make known their views in writing and to be^eard orally ;
whereas neither the exporter in the USSR , nor any importer of USSR pianos ,
took advantage of this opportunity ; whereas several of the other importing
and exporting parties known to be concerned have taken the opportunity to
                                                       t
make known their views in writing ; whereas the exporters in Czechoslovakia ,
the German Democratic Republic and Poland requested, and were granted , an
opportunity to make known their views orally;          !
                                                       !
Whereas , in order to arrive at a preliminary determination of dumping and
injury , the Commission sought to obtain and verify all information which
 it deemed to be nefcessary ;
                                                                 :    .. .
Whereas , in order to verify the export prices to the Community of the pianos
under investigation , and the resale prices of these pianos in the Community ,
the Commission carried out inspections at the premises of the principal
agents and importers concerned , namely : Cross and Ticher Ltd ,
London; Fortin Euromusic , Paris ; Furcht & Co, Milan; General Music ,             1
Les Eyzies , France; Hamm , Paris ; Hanlet , Paris ; Minns Music Ltd , Bpurnemouth ;
Ricordi , Milan; Sisme , Osimo ; Whelpdale , Maxwell and Codd Ltd ., London;
Whereas the Commission requested and received detailed written submissions
from the complainant Community producers with respect to the question of
injury and causation thereof ;    whereas the Commission also carried out
inspections at the premises of a number of complainant Community producers ,
namely : Barratt and Robinson Ltd , London; Bentley Piano Co L-d , Stroud
( Glos ); Farfisa SpA , Ancona ; Kemble & Co Ltd, Bletchley ( Bucks ); Rameau SA
Pianos , Ales , France ; Whelpdale , Maxwell and Codd Ltd, Londor,;
 ---pagebreak--- Whereas no information was submitted by , or on behalf of, any Community
purchaser or consumer of upright pianos , other than by      firms who were
also purchasing from the exporting countries under investigation ;
Whereas a large number of different models and finishes are covered by the
investigation ; whereas , consequently , the Commission , in its preliminary
determination of dumping , has based all its calculations on the prices
charged for upright pianos 110 cm in height , with 88 notes , 3 pedals and
matt mahogany veneer, this being in the Commission 's view, penerally
accepted by the interested parties , the most representative model ;
Whereas , in determining the normal value for the product in question , the
Commission had to take into account the fact that the exporting countries
 concerned do not operate market economies ; whereas the complainant initially
proposed South African domestic prices as the basis for normal value ;
whereas , after having considered the arguments advanced by the interested
parties to the proceeding , the Commission has based its preliminary deter­
mination of normal value on the prices charged for pianos manufactured in
 Finland; whereas , in arriving at this decision, the Commission has taken .
 into account in particular    the physical similarity of Finnish pianos to
 those under investigation , and the proximity to supplies of key raw
materials ;
 Whereas , owing to the particular structure of the retail market for pianos
 in Finland, and the fact that the greater part of Finnish production is
 exported, much of it to the Community, the Commission considered that it
 was appropriate and not unreasonable to use as basis for normal value the
 weighted average of Finnish export prices to the Community ;
 Whereas , after having considered the arguments and evidence presented by
      interested parties , the Commission adjusted the above normal value to
 take account of certain differences in physical characteristics as between,
 on the one hand, Finnish pianos    and, on the other , the pianos exported
 by the countries under investigation ; whereas in this context account was
 taken of the quality of the action , the type of soundboard used , and the
 raw material used for the cabinet ; whereas the allowance for such difference
 was based on the Cosfmission® s best estimate of the effect these would
 ---pagebreak---                              - u -
have had on the price charged for Finnish pianos exported to the Community ;
whereas the normal value was also adjusted to take account of the inferior
condition in which these pianos are delivered to the importer in the
Community , compared with Finnish pianos ; whereas the allowance for this
difference was based on the cost to importers of remedying the defects
involved ; whereas , in the case of the USSR , the Commission deemed it
appropriate to make these adjustments , despite the fact that no interested
party had claimed them;
Whereas , as concerns the export price , the Commission has used, for each
exporting country , the actual export price to the Community for the
representative model chosen ;
Whereas a comparison between the normal value and the export price shows
the following margins of dumping , expressed as a percentage of the price
free at Community frontier :
                                      1980 ( second half )   Situation at 1.9.1981
Czechoslovakia                               21.1%                  23.0%
German Democratic Republic           from 21.8% to 33.7%     from 14.0% to 42.8%
                                   weighted average 26.6%   weighted average 27.3%
Poland                               from 17.2% to 30.2%     from 14.2% to 35.0%
                                   weighted average 21.1%   weighted average 23.6%
USSR                                         55.8%                   79.7%
Whereas , with regard to the injury caused by the dumped imports to the
Community industry , the evidence available to the Commission during the
preliminary investigation showed that total imports of upright pianos from
the countries in question increased from 25 136 in 1978 to 31 213 in 1980 ,
an increase of 24% ;
Whereas , in examining the market shares held respectively by dumped imports
and by Community producers , the Commission has concluded that , by virtue of
their style and quality , the pianos from the countries in question are
competing mainly In a very specific sector of the market , namely that for
 ---pagebreak--- low-priced beginner 's pianos; whereas a separate identification of this
market has been possible , since such pianos are produced only by certain
producers in specific countries ; whereas the sales Of the imported pianos
under investigation should consequently be measured against the market for
such low-priced beginner 's pianos ; whereas most of the Community producers
directly competing with the dumped imports in the market for low-priced
beginner 's pianos are situated in the UK ;
Whereas , according to the Commission 's best estimates , the share of the Community
market held by dumped pianos from the countries in question stood at 40%
in 1978 and rose to 43%     in 1980;
Whereas , depending on the country of origin, the average CIF pripe of the
dumped pianos was , in 1978 , between 28% ( in the case of Czechoslovakia ) and
47% ( in the case of the USSR ) below the average unit sales price of Community
producers of this type of piano ; whereas in 1980 this difference had
 increased to between 39% ( for Czechoslovakia ) and 56% ( for the USSR );
whereas , given the structure of the market for imported and Community-
produced pianos , this indicates a substantial and increasing margin of
price undercutting ; whereas , even taking into account the evidence available
concerning differences in quality between Community-produced pianos and
those under investigation, the extent of price undercutting appears to the
Commission to be greater than the margins of dumping determined;
Whereas , as regards the effect of these dumped imports on the Community
industry , the evidence available to the Commission shows that total
Community production stood at 55 772 pieces in 1978 , rose to 57 849 pieces
in 1979, and fell to 54 250 pieces in 1980; whereas in the United Kingdom ,
production fell from 18 708 pieces in 1979 to 13 012 in 1980 , after having
previously increased from 18 400 in 1978; whereas in Germany , where the
industry produces a higher quality product not directly affected by the
dumped imports , production rose from 25 800 in 1978 , to 26 500 in 1979
and 27 500 in 1980;
 ---pagebreak---                                                                          f ,
                               - 6 -
  Whereas the evidence available to the Commission shows that the numbers
  employed by Community piano producers , other than these in Germany, is
  expected to be 23% lower in 1981 than in 1979; whereas , moreover , at least
  one major Community producer has been obliged considerably to curtail the
  number of hours worked in 1981 ;
  Whereas the share of the market for low-priced beginner 's pianos held by
  Community producers has , according to the Commission 's best estimates ,
  fallen from 39.5% in 1978 to 30.7% in 1980;
  Whereas the evidence available to the Commission shows that Community
  producers competing in this market have been unable to raise their selling
  prices sufficiently to cover increases in production costs , with the result
  that their profitability has been severely eroded since 1979 ;
                                                                     • i
                                                                   ' r
  Whereas the Commission has considered the injury caused by other factors
  which , individually or in combination, are also affecting the Community
                     «
'industry; whereas.it has examined in particular the        level of consumption
  of pianos in the Community, the prices and level of non-dumped imports , and
                                             o
 ---pagebreak---                                                                  , ir
the problems which may have been faced by UK producers as a result of
the rise in the value of the pound sterling ;       I  I
                                                    t
Whereas the evidence available to the Commission shows that total
consumption of pianos in the Community     rose from approximately 102 000
pieces in 1978 to approximately 126 000 pieces in 1980 ; whereas a similar
trend was visible for low-priced beginner 's pianos , the Commission 's best
estimate showing an increase from approximately 64 000 pieces in 1978 to
approximately 72 500 pieces in 1980 ;
Whereas total imports of non-dumped pianos rose from 32 646 pieces in 1978
to 51 379 pieces in 1980 ; whereas it is estimated that the share of the
market for low priced beginner 's pianos held by non-dumped imports rose
from 21.1% < 13 500   pieces ) in 1978 to 26.4% ( 19 140 pieces ) in 1980 ;
whereas this is considerably less than the share held by dumped pianos ;
whereas the Commission consequently considers that the impact on the market
of non-dumped pianos has likewise been considerably smaller than that of
dumped pianos ;                                                          , !
                                                         \
                                                           S          M /
Whereas it has been suggested by some interested parties that the difficulties
faced by the UK producers have been principally the result of the rise in
the value of the pound sterling , and of related economic factors ;^ whereas ,
however , UK exports of pianos to third countries,1 increased from 4 561 pieces
in 1979 to 4 618 pieces in 1980 , at a time when total Community exports of
pianos were declining ; whereas the Commission consequently takes the view
that the rise in the value of the pound sterling cannot have been a
significant factor causing injury to the UK industry      in respect of its
export sales , either to third countries or within the Community ;
Whereas , therefore , the impact of non-dumped imports on the market for low-
priced beginner 's pianos is in the Commission 's view the only significant
other factor causing injury to the Community industry ; whereas , however ,
the Commission takes the preliminary view that , despite this,dumped imports
from Czechoslovakia , the German Democratic Republic , Poland and the USSR
have , by the increase in their already substantial market share , and by the
increased level of price undercutting , been a cause of material
injury to the Community industry;
 ---pagebreak--- Whereas in these circumstances , and in order to prevent injury being caused
during the investigation , the Commission is of the view that the interests
of the Community require immediate intervention consisting in the imposition
of a provisional ant i - dumping duty on imports of upright pianos originating
in Czechoslovakia , the German Democratic Republic , Poland and the USSR
at a rate which , having regard to the extent of injury caused , should be
equal to the margin of dumping provisionally established ;
Whereas after being informed of the results of the Commission 's investigation
the exporters in Czechoslovakia , the German Democratic Republic and Poland
voluntarily undertook to increase their prices to a level which the
Commission considers adequate to eliminate the dumping margin provisionally
established , or the injurious effects thereof ; whereas , however , during the
consultations within the advisory committee concerning the acceptability
of these undertakings , certain delegations objected to . the termination
of the proceeding on the basis of acceptance of these undertakings ;
Whereas the Commission has consequently submitted a proposal to ,the Council
to terminate the proceeding     on the basis of the acceptance of the
undertakings offered, in respect of pianos originating in those three countries ,
HAS DECIDED AS FOLLOWS :
                               Sole Article
The anti-dumping proceeding concerning imports of upright pianos originating
in Czechoslovakia , the German Democratic Republic , Poland and the USSR ,
is hereby terminated in respect of such goods originating in Czechoslovakia , the
German Democratic Republic and Poland on the basis of the acceptance of price
undertakings offered to the Commission by the exporters concerned , namely
Musicexport , Prague , Demusa , Berlin ( East ) and Ars Polona , Warsaw .
Done at Brussels ,                            For the Council