CELEX: 51991PC0326
Language: en
Date: 1991-08-19
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 1048/90 WITH REGARD TO THE IMPOSITION OF A DEFINITIVE ANTI-DUMPING DUTY ON IMPORTS OF SMALL SCREEN COLOUR TELEVISION RECEIVERS ORIGINATING IN THE REPUBLIC OF KOREA

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(91>326  final
                                                  Brussels, 19 August 1991
                                      Proposal for a
                                 COUNCIL REGULATION (EEC)
               «rending Régulation (ŒD) No 1048/90 with regard to the
              irrposition of a definitive anti-durrping duty on irrports of
             «rail screen colour television receivers originating in the
                                    Republ ic of Korea
     i^F
                              (presented by the Commission)
 ;*??
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 ---pagebreak---                           EXPLANATORY MEMORANDUM
1. In April 1990 the Council imposed a definitive ant i -dumping duty on
   imports of small screen colour television receivers (SCTVs)
   originating in the Republic of Korea, by Regulation (EEC) 1048/90.
2. In the above regulation, duties of between 10,2 % and 10,5 % were
   imposed on imports from three cooperating exporters.
3. The duty applicable to other Korean exporters (the general duty) who
   refused to cooperate in the investigation, was established on the
   basis of facts available, in accordance with Article 7(7)(b) of
   Regulation (EEC) 2423/88, at a level of 19.6 %, with the dumping
   margin calculated by comparing an export price based on the average
   C.I.F. unit price of imports into the Community from Korea with a
   normal value based on the average domestic selling price of the
   cooperating Korean exporters. This method was used because of the
   activities of one particular exporter which was known to be sending
   large volumes of SCTVs to the Community, often transhipped through
   third countries, and which refused to co-operate with the Commission.
4. In November 1990 the Commission received information from the
   Electronic Industries Association of Korea (E.I.A.K.) to the effect
   that the non-cooperating exporter mentioned above was no longer
   exporting small screen colour television receivers to the European
   Community. They alleged that this changed situation removed the
   justification for the 19,6 % general duty and suggested that it
   should be reduced to the level of the highest duty for a cooperating
   company (i.e. 10,5 % ) .
5. In the light of this information, the Commission, in January 1991,
   opened a partial review on its own initiative, limited to question of
   whether or not to modify the general duty.
6. The Commission's investigation showed that the exporter whose
   activities led to the imposition of the 19.6 % general duty is no
   longer producing SCTVs in Korea.
   In addition, it was established that the quantities exported by other
   non-cooperating exporters were extremely small, even before the
   imposition of the anti-dumping duty.
                                                                         "L
 ---pagebreak---                                   2 -
    In view of these changed circumstances, the imposition an anti-
   dumping duty on a different basis from that used for the cooperating
   exporters is no longer Justified, and the appropriate level for the
   general duty should be highest rate of anti-dumping duty found for a
   cooperating exporter, i.e. 10.5 %.
8. Regulation (EEC) No 1048/90 should therefore be amended to reduce the
   general duty from 19.6 % to 10.5 %. This measure shall lapse on the
   same day as the definitive anti-dumping measures          imposed by
   Regulation (EEC) No 1048/90.
9. Of course, if the Commission becomes aware of a resumption of
   production of SCTVs in Korea by the exporter mentioned             in
   Paragraph 3, 4 and 6, it will consider reopening a new partial review
   in order to investigate the matter.
 ---pagebreak---                                Proposal for a
                          COUNCIL REGULATION (EEC)
          «rending Regulation (EEC) No 1048/90 with regard to the
         irrposition of a definitive anti-durrping duty on irrports of
        «rail screen colour television receivers originating in the
                               Republ ic of Korea
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on
protection    against  dumped   or subsidized    imports  from countries not
                                                      1
members    of   the European    Economic  Commun!ty< ),    and in particular
Article 14 thereof,
Having   regard    to  the proposal    submitted   by   the Commission  after
consultation within the Advisory Committee as provided         for under the
above Regulation.
(1) OJ No L 209, 02.08.1988, p. 1
                                                                              U
 ---pagebreak---                                          - 2 -
                               I. PREVIOUS PROCEDURE
               (a) Imposition of definitive anti-dumping duty
(1) In February 1988 the Commission initiated an anti-dumping proceeding
    concerning    imports    of   small    screen   colour      television    receivers
    (hereafter   referred     to as SCTVs) originating           in the    Republic of
    Korea <2>.    This    followed     a   complaint      lodged    by   the   European
    Association    of    Consumer     Electronic     Manufacturers        (E.A.C.E.M.),
    representing a major proportion of Community production. Following an
    investigation,    a    provisional      anti-dumping      duty   was    imposed   by
                                                      (3)
    Commission   Regulation     (EEC) No 3232/89          , and    a definitive     duty
    was subsequently imposed by Council Regulation (EEC) No 1048/90 (4) .
                                  (b) General duty
(2) In Regulation (EEC) No 1048/90, duties of between 10,2 % and 10,5 %
    were imposed on imports from three cooperating exporters.
(3) The duty applicable to other Korean exporters (hereafter referred to
    as the general duty) and in particular to one exporter who refused to
    cooperate   in the    investigation and who was known to have exported
     large quantities of       the product     concerned     to   the Community, was
    established   on   the basis of what were considered               to be   the most
    appropriate facts available, i.e. by comparing an export price based
    on the average C.I.F. unit price of imports into the Community from
    Korea with a normal value based on the average domestic selling price
    of the cooperating Korean exporters. The margin thus established was
    19.6%.
(2) OJ No C   44, 17.02.1988, p.       2
(3) 0J No L 314, 28.10.1989, p.        1
(4) OJ No L 107, 27.04.1990, p. 56
 ---pagebreak---                                                - 3 -
                                      II» REVIEW PROCEDURE
   (4) in   November        1990   the   Commission    received   information   from    the
       Electronic Industries Association of Korea (E.I.A.K.) to the effect
       that    the non-cooperating          exporter   mentioned   above was   no   longer
       exporting small screen colour television receivers to the European
       Community.        It was alleged that this changed situation removed the
       Justification for the 19,6 % general                duty and suggested     that   it
       should be reduced to the level of the highest duty imposed on imports
       of a cooperating exporter (i.e. 10,5 % ) .
   (5) After consulting the Advisory Committee, the Commission decided that
       there was sufficient evidence to Justify the initiation of a partial
       review, limited in scope to the question of whether or not to modify
       the general duty. The partial review was opened on the initiative of
       the Commission, in accordance with Article 14 of Council Regulation
       (EEC) 2423/88, by a notice published in the Official Journal of the
       European Communities* 5 *.
   (6) The    Commission        officially     advised   E.I.A.K.,   the  exporters     who
       cooperated in the original Investigation, the representatives of the
>-     exporting country and the complainant                in the original    proceeding
       (E.A.C.E.M.), and gave the parties concerned the opportunity to make
       their views known in writing and to request a hearing.
   (7) E.I.A.K., some exporters and E.A.C.E.M. made their views known in
       wr i t i n g .
   (8) The Commission sought and verified all information it deemed to be
       necessary        for   the purposes of      this proceeding    and  in particular
       received        and   verified    to   the  extent   necessary   information    from
       E.I.A.K.
   (5) OJ No C        18, 26.1.1991, p.      3
                                                                                            G
 ---pagebreak---                                           - 4 -
                        M l . RESULTS OF THE INVESTIGATION
 (a) Determination of general duty in original anti-dumping investigation
(9)  As is stated by the Commission            in Recital 33 of Regulation        (EEC)
     3232/89 (imposing the provisional duty), for those Korean exporters
     who did not make themselves known during the course of the original
      investigation, dumping was determined on the basis of what                   were
     considered    by   the Commission        to be   the most     appropriate    facts
     available,    in accordance with Article 7(7)(b) of Regulation               (EEC)
     No 2423/88.
(10) For   these    non-cooperating        exporters,     the   dumping  margin     was
     calculated by comparing an export price based on the average C.I.F.
     unit price of imports into the Community from Korea (according to
     1987   Eurostat    data) with       a  normal   value    based  on  the   average
     domestic   selling price of         the cooperating      Korean exporters. The
     resulting dumping margin of 19.6 % became that applicable to the
     non-cooperating exporters and was imposed as the general duty, while
     the   imports   of    the   three    cooperating    Korean   exporters   (Daewoo,
     Goldstar and Samsung) are subject to definitive anti-dumping duties
     of 10.2 %, 10.4 % and 10.5 % respectively.
(11) The major reason for not considering the highest duty                 imposed on
      imports from a cooperating exporter to be appropriate for the non-
     cooperating     exporters       was    the   behaviour     of   one   particular
     manufacturer based in Korea. This company was known to be exporting
      large quantities of SCTVs to the Community, with many of them being
     trans-shipped     via     third   countries.     It   was   approached    by   the
     Commission during its on-the-spot investigation, with the assistance
     of the Electronic       Industries Association of Korea, with a view to
     securing   its co-operation. However,           the company     refused   to co-
     operate.
 ---pagebreak---                                            - 5 -
    (12) The Commission decided, and the Council confirmed, that, in these
         circumstances,     neither   the   dumping   margins   determined   for  the
         cooperating exporters nor the information contained in the complaint
         provided the most appropriate basis for determining the margin of
         dumping for non-cooperating exporters.
                              (b) Changed trade situation
    (13) The 19.6 % general       duty was    imposed on the basis of      the facts
         available for the original       investigation period - 1987. In view of
         the  information received from E.I.A.K. and other sources,             it is
         clear that the trade situation concerning the above exporter has now
         changed considerably.
        (i)      Information from E.I.A.K.
JFr
    (14) According to E.I.A.K.'s      internal statistics, and      independent data
         obtained from the Korean Foreign Trade Association, both of which
         were verified by the Commission, the exporter in question has not
         exported S C T V s to the Community since 1988. Furthermore, its total
         exports from Korea of S C T V s to all destinations in 1990 amounted to
         only 3 % of the 1988 volume.
    (15) E.I.A.K. supplied evidence that the exporter          involved had shifted
         its capacity away from CTV's to other electronic products.
    (16) The exporter, which       is a member     of  E.I.A.K.,   had  supplied  the
         Association with a signed declaration that it no longer planned to
         export S C T V s to the Community. Furthermore, it was established that
         it had converted      its production facilities to the manufacture of
         other electronic products.
                                                                                      f
 ---pagebreak---     (ii)     Information from Korean Ministry of Trade and Industry
(17) In May 1991, the Ministry of Trade and Industry of Korea certified
     to the Commission     that the exporter had now ceased all production
     of SCTVs in Korea, and provided appropriate documentary evidence.
             (c) Imports from other non-cooperatIng exporters
(18) The Commission also established that the export volumes of other
     non-cooperating exporters were extremely        small, even before     the
     imposition of the anti-dumping duty.
                                (d) Conclusion
(19) In view of these changed circumstances, the Council concludes that
     the situation which Justified the use of a different basis from that
     applied to the cooperating exporters for the purpose of imposing an
     anti-dumping   duty   no  longer  exists. The    exporter   mentioned   in
     recitals 13-17 has now ceased production of SCTVs           in Korea and
     therefore   the   quantities   exported   to   the   Community   by   non-
     cooperating exporters can only be very small. In these circumstances
     the appropriate    level for the general duty should be the highest
     rate of anti-dumping duty      imposed on   imports from a cooperating
     exporter i.e. 10.5 %.
(20) This rate of duty does not act as an incentive to circumvention, nor
     as  a  reward   for   non-cooperation,  but   constitutes   an  equitable
     response to the changed trade situation.
(21) The parties were informed of the essential facts and considerations
     upon which the findings were based, and were granted a period within
     which to make representations to the Commission. Where appropriate,
     their comments were taken into consideration. E.A.C.E.M. requested,
     and was granted, an opportunity to be heard by the Commission .vith
     regard to its findings in this proceeding.
                                                                                a
 ---pagebreak---                                       - 7 -
                  IV. AMENDMENT TO REGULATION (EEC) No 1048/90
  (22) Article 1 of Regulation (EEC) No 1048/90 should therefore be amended
c
        to reduce the general anti-dumping duty from 19.6 % to 10.5 %, with
        effect from the date of entry into force of the present regulation.
  (23) This measure shall    lapse on the same day as the definitive anti-
        dumping measures imposed by Regulation (EEC) No 1048/90,
  HAS ADOPTED THIS REGULATION :
                                    ArtlÇla 1
  In Article 1 (1) of Regulation (EEC) No 1048/90 the figure "19.6 %" is
  replaced by "10.5 % M .
  The remainder of Regulation (EEC) No 1048/90 remains unchanged.
                                    Article 2
  This   Regulation   shall  enter  into  force on   the day   following its
  publication in the Official Journal of the European Communities.
  This Regulation shall be binding in its entirely and directly applicable
  in a 11 Member States.
                                                                             '"Lis
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(91) 326 final
                                                      DOCUMENTS
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