CELEX: 51980PC0223
Language: en
Date: 1980-04-25
Title: AMENDED PROPOSAL REGULATION (EEC) OF THE COUNCIL CONCERNING THE DEFINITIVE COLLECTION OF PART OF THE PROVISIONAL ANTI-DUMPING DUTY ON CERTAIN ACRYLIC FIBRES ORIGINATING IN THE UNITED STATES OF AMERICA (presented by the Commission to the Council, pursuant to the second paragraph of Article 149 of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 223
Vol. 1980/0073
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
1
                                            COM(80)223 final
                                            Brussels / 24th Apn I 1980
              AMENDED PROPOSAL REGULATION ( EEC ) OF THE COUNCIL
            CONCERNING THE DEFINITIVE COLLECTION OF PART OF THE
                                * j            "
         PROVISIONAL ANTI-DUMPING DUTY ON CERTAIN ACRYLIC FIBRES
                ORIGINATING .IN THE UNITED STATES OF AMERICA
       (presented by the Commission to the Council / pursuant to the
            second paragraph of Article 149 of the EEC Treaty )
    C0M(80 ) 223 final
 ---pagebreak---                                COl*'*C !L B£ J '«LAT IC. CC £ C ) NO .
                */                                                -
                      Imposing a definitive anti-dumping duty on
            /       ' certain acrylic fibres originating in the united States of Anerica
        :•  *                .                                                        *
                  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                                  y
                  Having regard to the Treaty establishing the European Economic Community ,
                  Having regjrtl to Council Regulation ( EEC ) No ;. 3017 / 79 of 20 December 1V79 orv
  . 308 / 11 protection against dur.ped or subsidized imports from countries not members of t"-.e
                  European Economic Community ( 1 ),
                   Having regard to the proposal submitted by the Commission after consultation - itn
              . the Ad !          Committee set up under Article 6 of Regulation ( EEC ) No . 3017 / 79 ,
                  Whereas on 11 May 1979 the Commission rece'ved a complaint submitted by CIRrS , the
                   International Rayon and Synthetic Fibres Corrittee on behalf of the quasi-total it /
                  of the Community producers of acrylic fibres , setting out evidence as to the
                  existence of dumping of the like product originating in Greece , Japan , Spain , T„r*ey
                  and the United States of America and of material injury resulting therefrom ;
                  Whereas , since there was sufficient evidence to justify initiating a proceeding
               ' the Commission puolished in the Official Journal of the European Ccrmur.ities of
                  12 June 1979 a notice of the initiation of an anti-dumping procecure concerning
             . irports of certain acrylic fibres originating in Greece , Japan , Spain , Turkey and
             ■ the United States of America(2 ), so advised the exporters and importers known o / tre
             I Comnission to be concerned , as well as representatives of the countries concerned
                  and tre complainants and commenced the investigation at Community Level ana g„ve
                 the parties directly concerned the opportunity to make known their views in
! 1.53 / 15
                 writing ar.d i be heard orally , and to meet so that opposing views might be
                 presentea and rebuttal arguments put forward ;                                           •
                                                      ^preliminary
               Whereas , for the purposes of a determination of diinping end injury , the Commission
  335 / 11    made on the spot investigations at the offices of the American exporters whose operatic;
              were deeded to require investigation , nar.ely the Ar.erican Cyonamid Ccr.pany, Wayne ,
              New Jersey , USA and the Badische Corporation, Williamsburg, Virginia , USA; whereas
              ( 1 ) 0J No . L 339 , 31.12.1979 , p. 1
             ( 2 ) 0J No . C 146, 12.6.1979 . p. 2
 ---pagebreak---   similar investigations were carried out at the offices of Vonvicryl S I, A
 Athens , Greece , Akrilik Kiraya Sanayii A.S. , Istanbul , Turkey ; whereas i' ? Corr.r. is
 c-rriet cut on t.-,e spot invest igaticr.s et the offices of tha mcin Ccv.:.       y ^ reducers
  involved r.-rjly the Italian co.-pjnics A\iC SPA, . Kilcn; Kontcf icre .PA , *.M I c.r.,
 Societa Italia.-ia fiesina SPA ( S.I.R. ), flilan- and SKIA Viscosa SPA , Mi U /s;
                                      »   •
 Whereas it emerged from the investigations carried out in Greece and Turkey that no
dumping existed in the case of the exports of these producers to. the Community and
the investigation was consequently closed in so far as they are concerned ;
Whereas to make a preliminary examination of the existence of dumping by Ar.eri jn
producers , the Commission cor.pared their export prices to the tor-unity wi"tn tnose
ruling on the American market ;
                                            \
Whereas weighted averages were used for these comparisons , which were made at cne
ex-factory level for sales during the period 1 June 1978 to 31 May 1979 ;
Whereas all the allowances claimed by the Badische Corporation for transport ar.a
selling expenses were granted ; whereas , however , the company 's claim th„t first
quality material sold as development samples at low prices should not oe includeo
in the overall net weighted average calculation for first quality materia ., was
disallowed since tne volume of the sales concerned constituted such a hicn
proportion of total sales and the company did not provide sufficient evidence
to justify its claim ;
Whereas the allowance claimed by the d-iorican Cyanamid Company for transport ,
costs was granted ; whereas , in the absence of sufficient ., evidence in support
of their claim that there were virtually no selling expenses on exports to tne •
Community , the breakdown of these costs was based on the available accounting
data , allocated proportionately to the turnover Tor each product and xarket uncer
cons iderat ion ; 1 whereas the exporter in question requested in addition a supplementary
adjustment fcr certain ac.-.inistrat i\,e ind other expenses ; whereas , in the absence of
sufficient proof as to the direct relationship of these expenses with . the sales unaer
consideration , the Commission was not able to take this request into account ; whereas
                        /
a claim made by the American Cyanamid Company for differences in t.heprcduct ion cost of
certain acrylic fibres sold in the dc-estic market as opposed to those sold in the
Comr.jni ty market was not allc-ed since the exporter in question refuseo tc provide
documentary proof in support of its claim ;
 ---pagebreak---                                                   - 3 -
           Whereas with regard to injury the evidence available to the Commission during
            the preliminary examination showed that the Community had been making strenuous
           efforts to recover from the effects,' experienced over many years , of virtual
            stagnation of production and consumption accompanied by considerable overcapacity
            and extremely high losses ;
                                                ' »
                                              •     •
            Whereas this process of recovery had entailed major efforts to reduce capacity .•
            and to rationalize which had resulted in an overall reduction of approximately 8%
           of tr.e work force since 1977 , and attempts by the European producers to
            increase tfeir selling prices in order to cover sharply increased raw material costs
            and to reach a reasonable profit situation ;/
L308 /            "                                                                      . ■   '
   12       Whereas , whilst these attempts were being made by Community producers a significant
            increase in imports had taken place especially from the United States of Ar, erica ;.,
            whereas the evidence available to the Commission shewed that imports into trie Ccr.cn ' - ty
           of acrylic fibres originating in the United States of America had increased from 7 oil
           tonnes in 1977 to 10 719 tonnes in 1978 representing an increase of 41% , and to 4 3C "!
           tonnes in the first quarter of 1979 ; whereas on the basis of available statistics
           continuous filament tow represented approximately 605.' and discontinuous acrylic fibre
           represented 40% of American imports ; whereas the American market     share nad nearly
           doubled since 19 77 from 1.7% in 1977 to 3.4% in the first three months of 1979 ;
           Whereas US imports were concentrated in Italy which , for the first Quarter of , 1979 ,
           received alrr.ost 75% of American exports to the Communty ; whereas these exports to
           Italy had increased from 1 794 tonnes in 1977 to 6 225 tonnes if> 1978 representing ar.
           increase of 246% and to 3 181 tonnes for the first quarter of 1979 indicating an annual
           increase of 104% compared wi;h 1978 ; whereas the market share' of these imports had .
         • increased from 1.1% in 1977 to 2.9% in 1978 and to 6.0% ior the firs.t three months
           of 1979 ; whereas tht.se increased American exports to Italy had been at extremely
           low prices undercutting Italian producers by approximately 25%;     whertas this had
       , resulted in a' loss of orders for Italian producers and depression of prices and
     ^       additional losses for Italian producers ;                                           .
       . 1
           Whereas the evidence available to the Commission also indicated that this situation in
           Italy which represents approximately "*30% of Community production and approximately
 ---pagebreak---                                                                - 4 -
    •       •          of Comunity . consu-.ption had a considerable impact on.-other Ccr.n..n:Ty proo-cers
                 . ho tracit icr, ally' expert to Italy and who «. ere also facing a difficult c tu -: -icn
                 crar'acterired by heavy losses , and who were currently force to meet artificaUy low
                Ar-eric;n prices ;                                 ,,
 . 3C3 / 1 /!                                              :   • •
                                                             •   •
             . Whereas therefore              there was suf f icient'evic'ence to show that " t re. d--pc- d ir„ort <-.
                originating in the USA were ur.derr.inir.g the process of recovery 07 Ccm.-.unity z*„dvca*
                whereas , consequently , these imports constituted injury to a Community incustry ;
                                                                                                          «
                w'r.ereas , sir.ee this preliminary examination of the roat;er showed that there
                wjS djrpir.fj , that there was sufficient evidence of injury and that the interest :,
                of trc Community called for ir.nediate intervention , the Commission , by Rc^ulat-cr. CE-i :
                No . 271 2 / 79 CD , ir.posed a provisional ant i - dumping duty on certain acrylic Tii'cs
                c-iginatir.g in the United States of America ;
                                                                                                                            1
                                 since it had                  '                                   *    .                   i
                V ereas        /   vr.erged fron the prel iminary examination of the facts t'ut no su~p:r - ;               '
                existeo on irports from . E.I. Dupant de f.'emours and Company , uilmin-jtcri , I:-'. jw.i r 2 ,
                USA      tr.is firm was excluded from the application of the provisional d-iy ;
                             fcrirerrr.ore                            - '
                W.TCos / Ofttf of rr^e American exporters , Badische Corporation , Wi 1 1 i j.-c . urg , Viroir.»a
                uSA     haJ voluntarily uneertaken to
                increase iti prices to levels which were considered satisfactory ; - r.ereai tr.ic
- 3C6 / 1 2
               ur.aertakir.g was accepted by the . Commission , which accordingly cecicee to terminate
               the procedure concerning t*iis company and to exclude it from the aspncstior. of the
               provisional duty !                                              .
              wnsreas subs            jer.t ly the Cc.^irission by Regulation ( EEC ) No . 61 / £G(i ),
               excluded t.jitman Chemical International A.G. and Monsanto Internat ior,.;l Sales Cc~i. any
               from tne ;ip;)licot ion of the prcj i sior.al ^ duty ;
              Whereas           clever                                                '       '              invent igaMc/V
              were carriec cut with Ue main Spanish exporter in the course of ur.i'cr. a price uhlerUi'
              was receivec. whicr. wes cc . . sit creo s*t is*actcry by the Commission ar.d the procedure Was
              consequent ly terminated as recur cs imports ir cm Spain(3 );
              v .)   oj '.w . l ii. 1;,                p. 11
              I ?) :j :. o . I -. o , 15.1 .: Ç5f , p .      7
                     . J :. o . C 2 , 4.1.1ÇÕ0 , p . c
 ---pagebreak---                                                         - S -
              Whereas since the examination of the facts of the matter had not yet oeen ea<M " .0
              and the American Cyananid Company, the only known exporter to whom the provisional
              duty applied, had requested that the duty be extended for a period not exceeding
^ _ two' months, the Council by- Regulation ( EEC) No. 522/80(1 ) so extended the duty;
                       Whereas followinq this extension the Commission completed its investigation
                       into Japanese exports of acrylic^ fibres to the Community ; whereas dumping and
                    : injury resulting therefrom having been provisionally established, the principal
                       Japanese exporters offered priceundertaking% the effect of which was to
                       increase import prices into the Community to a level necessary to eliminate
                       injury ;       these undertakings have been accepted by the Commission which has
                       decided to terminate the anti-dumping procedure insofar as Japan is concerned ;
                       W.'i - . «J in the course of, the subsequent examination of the exports of
                       products manufactured by American Cyanamid Company , completed
 *"■" *" after the imposition of the provisional ant i-djrping duty , the intertsttfJ parties
                hoo. the opportunity " to make known their views in writing , to be hejrc oy fch*
              . Ccrr. iss ion c.rd to orally deveLop their views , to inspect nonconfidential'
   .23/ 20 " i r.f ormat i or, relevant to the defence of tr.eir interests and to be infornea
                of the - essential fact * and considerations oh the basis of whicn it was ir.tenct-c '.c
                node .-. final, determination ; wnereas the Community producer and seme of the exports
      9      - -ind iirrc*er3 concerned availed themselves . of these possibilities by             IfrtOvh
          '• tr.eir v ;V s ir writing, and orally ; whereas the Commission also carried out a
                       further on the spot investigation at the offices of the American Cyanamid
                                                                   \
                       Company ;
                      Whereas for the purpose of a final determination as to whether dumping existed
            -•                                                   whether ' '
                      the Commission endeavoured to establish / American domestic sales were made in
                      the ordinary course of trade ; whereas since American Cyanamid asserted that
                      its sales on the American market were not made at a loss , comparisons were
                      made on the basis of the company 's prices ruling on the domestic market ;
                      Whereas weighted averages were used for these comparisons , which were made
                      at the ex-factory level for sales during the period 1 December 1979 to
 "              .     29 February 1980 , the latest date for which information is available ;
                        ( 1 ) 0J N° L 59 , 4.3.1980, p. 1
 ---pagebreak---         Whereas on the above basis calculations showed that s'ince the date of entry
        ■into force of the provisional anti-dumping duty , no dumping existed for .
      . discontinuous acrylic fibre and that the weighted average dumping margin for
        continuous filament tow of acrylic fibres during this period is 2«o%
  .           Whereas with regard to the elements affecting the determination of injury ,
              new information was received which showed that imports into the Community
              of acrylic fibres originating in the United States of America amounted
              to 17 400 tonnes in 1979 , representing an increase of 62'/. "compared to 1978 ;
              whereas the American market share had more than doubled from 1.7% in 1977
              to 3.5% in 1979 ; whereas it has been borne in mind that the above figures
          • include approximately 5 000 tonnes imoorteo from Eastman Chemical International
          ' AG and Monsanto International Sates Company which shipments of hig^h priced
.   _        {nod'crytic fibre were found not to cause injury;                         , .
           - Whereas insofar as Italy was concerned,American exports co that country
              amounted to 11 500 tonnes in 1979, represent ing an increase of 85% compared
              with 1978 ; whereas the market share of these imports had increased from
              2.9% in 1978 to 5„0% in 1979 ;                               '         ...
              Whereas the total market share held by American exoorts and those held by
              Jaoanese and Spanish firms also found to have dumped     amounted in 1979 to
              7.6% in the Community and to 9.8% in Italy ;                            •
              Whereas , on 26 March 1980 American Cyanara id Company voluntarily offered to ,
undertake to increase its export prices to a level corresponding to the prices on
              the domestic marked thus eliminating in their opinion dumping margins
              calculated on that basis ;"         .                             ■
              Whereas , however , subsequent to the offering of the above undertaking the
              complainant , CIRFS , provided to the Commission information indicating that
              the- domestic sales of .like products by- American Cyanamid Company have been
              made at prices below cost of production since early 1979 ; whereas this •
              information which is based on a report prepared by an American research
              organization , First Boston Corporation, gives reasonaDle grouncs for believi.'ii!
              that American Cyanamid Company 's sales of acrylic fibres on the domestic
       T market are in fact not^being made in the ordinary course of trade because the
 ---pagebreak---          weiahted   average selling prices have been below cost of production    since the
beginning of 1979       and have not been at prices which permit recovery of all  costs
          within a reasonable period of time in the normal course of trade ;
          Whereas American Cyanamid Company , despite repeated requests by the
          Commission, has firmly denied access to necessary financial information
          pertaining to costs of production ; whereas in these circumstances dumping
          calculations concerning      this  ,         Company have been based on the
          constructed value of acrylic fibre as derived from the best evidence
                             4
          avai lable, the above-mentioned report prepared by the First Boston Corporation
          having taken into account known factors applicable to American Cyanamid
          Company ;   -
          Whereas , more precisely , the cost of production extracted from the study in
          question for an American producer considered to be the most efficient in
          this area has been'increased by ' A or respectively 5 US dollar cents per lb
          to allow for differences in the production process of American Cyanamid
          Company and by a profit margin before tax of 3% on the selling price ;
          Whereas on the above basis it was finally established that the weiqh't^j
          average dumping margin for discontinuous acrylic fibre is nil     in December
          1979 and 13,7% in the early months of 1980 resoectively , and for -continuous
          filament tow of acrylic fibre is 3,73C in December 1979 and 17,6% in the
          early months of 1980 respectively ;
          Whereas , therefore , the facts as finally established show the existence
         of dumping practised by American Cyanamid Company and material injury
           resulting therefrom for the Community industry concerned ;
         Whereas , in these circumstances , protection of the Community 's interests
          calls for the definitive collection of the amounts secured by way of
         provisional duty in respect of acrylic fibres originating in the United States
         of America up to the rates detailed in the preceding paragraph and for
         the Imposition of a definitive anti-dumping duty at the rate of 13,7% on
         discontinuous acrylic fibre and 17 ,AX on continuous filament tow of acrylic
         fibre ;
         HAS ADOPTED THIS REGULATION :                  ~
 ---pagebreak---                                       Article 1
      1.   A definitive anti-dumping duty is hereby imposed on dlscont inuous
      acrylic fibre falling within Common Customs Tariff subheading ex 56.01 A
      and corresponding to Nimexe Code" 56.01-15 and continuous filament tow of
      acrylic fibre falling within Common Customs Tariff subheading ex 56.02 A
      and corresponding to Nimexe Code 56.02-15 , both originating in the
      United States of America .
      2.   The rate of duty shall be as follows :
      - 13,7% on discont inuous acrylic fibre
      - 17,6% on continuous filament tow of acrylic fibre
                                                      *
      on the basis of the value declared in accordance with Commission Regulation
      N° 375 / 69 of 27 February 1969 on the declaration of particulars relating
      to the value of goods for customs purposesd ).
      3 . The provisions in force for the application of customs duties shall
      a'pply to this duty .
                                      Article 2                  ,
      The amounts secured by way of provisional duty pursuant to Regulation ( EEC )
      N° 2712 /79 as amended by Regulation_CEEC ) N° 61 /8 0 s hal I be definitively
      collected as follows :
     - for discontinuous acrylic fibre      no duty             for imports during
         December 1979 and for imports effected thereafter at a rate OT 13, 7£;
     -• for continuous filament tow of acrylic fibre at the rate of 3,7% for
        imports during December 1979 and at the rate of 17,6%thereafter .
( 1 ) 0J No L 52 of 1 . 3.1969 , p. 1
 ---pagebreak---                                 9
                             Article 3
The definitive anti-dumping duty instituted by Article 1 does not apply
to acrylic fibres produced and exported by :                   -
- the Badische Corporation , Williamsburg / Virginia , USA ; •
- EI Dupont de Nemours and Company , Wilmington , Delaware , USA ;
- Eastman Chemicals Division of Eastman Kodak Company , Kingsport , Tennessee
 • USA ( exported by Eastman Chemical International AG , Zug , Switzerland );
- Monsanto International Sales Company , Missouri , USA .
                             Article 4
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 lapplicable
in all Member States .
Done at Brussels ,                               For the Council
                                                 The President