CELEX: 51988PC0207
Language: en
Date: 1988-04-07
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of roller chains for cycles originating in the People's Republic of China and providing for the definitive collection of the provisional anti-dumping duty on the said imports (submitted by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 207
Vol. 1988/0063
 ---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) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, 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 ou sont considérés déclassifiés
conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
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 last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, 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 or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
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
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444    vom   13.   März   2015   über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
VERSION NON REVISEE                                     COM ( 88 ) 207 final
                                                        Brussels , 7 April 1988
                                  Proposai for a
                             COUNCIL REGULATION ( EEC )
           imposing a definitive anti-dumping duty on imports of roller
           chains for cycles originating in the People 's Republic of China
           and providing for the definitive collection of the provisional
           anti-dumping duty on the said imports
 ---pagebreak---                        EXPLANATOKY «BFANPUM
 1 . Commlssion Regulation (EEC) No 14/88 impose! a provisionai
      anti-dumping duty on importa of roller chains for cycles
      originatine in thè People's Reputile of China .
2.    The Commission has since carried out further investigations
      into the normal value and injury aspects .
3 . As regards dumping , normal value was definitively
     established by reference to domestic prices in a market
     economy (Japan). The weighted average dumping margin for
     the reference period ( 1987) was found to be well in excess
     of 50% .
4 - On the question of injury , import prices during the
     reference period , taking due account of differences in
     product quality , undercut Community producers' prices by
     35%-45% . The imports helped bring about not only a
     generalized steady decline of prices on the Community
     market , but also loss-making sales , a fall in Community
     output and a consequent lowering of capacity utilization
     rates .
5 - The margin of undercutting suggests that a 35% duty is
     necessary to eliminate injury . In order to ensure the
     effectiveness of the measure and prevent circumvention , the
     ad valorem duty should be backed up by a variable duty .
     Thus we are proposing a definitive duty equivalent either
     to the amount by which the free-at-Community-frontier price
     (before duty) paid by the first Community importer falls
     below 0.65 ECU/metre or to 35% ad valorem , whichever is the
     greater .
 ---pagebreak---                   COUNCIL REGULATION ( EEC ) No . . . / 88
                         Of
bmposing a definitive anti-dumping duty on imports of roller
ehains for cycles originatine in thè People's Reprobile of China
ani providing for thè definitive collection of thè provisionai
anti-dumping duty on thè said imports
THE OOUNCIL OF THE EUROPEAN OCMMUNITCES ,
Having regard to the Treaty establishing the European Economic
Community ,
Having regard to Council Regulation (EEC) No 2176/84 of
22 July 19S41 on protection against dumped or subsidized
imports from countries not members of the European Economic
Community , as amended try Regulation (EEC) No 1761/87,2 and in
particular Article 12 thereof ,
Having regard to the proposai sutmitted by the Commission after
consultations within the Advisory Committee estatlished try that
Régulation ,
Whereas :
A.   PREVIOUS PR           IBS
 1.  Following a complaint from the Fachverband Fahrrad-und
     Graftradteile- Industrie eV the Commission published a
     notice In the Official Journal of the European
     Conmuni t i e s3 announcing the initiation of an anti¬
     dumping proceeding concerning imports into the Community
     of 1 / 2 " x 1 / 8 " roller chain for cycles , corresponding to
     Combined Nomenclature code ex 7315 11 10 ( from
     1 January 1988), originating in the Soviet Union and the
     People 's Republic of China ;      it then commenced
     investigations .
1 OJ L 201 , 30.7.1984 , p. 1 .
2 CJ L 167 , 26.6.1987 , p. 9 .
3 OJ C 235 , 5.9.1984 , p. 9 .
                                                                     -3
 ---pagebreak---                                  - 2 -
   2.  Following the Investigation , which established the
       existence of dumping and injury , 4 one Chinese exporter ,
       the China National Light Industrial Products Import and
       Export Corporation , Beijing , and the Soviet exporter
       offered price undertakings . The Chinese firm undertook
       to raise its export prices by an amount sufficient to
       eliminate the injury caused by dumping , and this
       undertaking was accepted (Decision 86/33/EEC ,
       13 February 1986). 5
 B.    VIOLATION OF UNDEKTAKING AND REOPENING OF PR        HïS
  3.   In July 1987 the Community producers complained to the
      Commission that 1 /2 " x 1 /8 " roller chains for cycles
      manufactured by the China National Light Industrial
      Products Import and Export Corporation , Beijing , were
      again being exported into the Community at prices causing
      material injury to the Community industry ; the complaint
      was supported by statistical evidence published concerning
      export volume and prices . The Commission also received
      specific information from the producers and the customs
      authorities of certain Member States that the price
      undertaking had been violated by exports to the United
      Kingdom and German markets in 1987 .      In accordance with
      Article 10(6) of Regulation (EEC) No 2176/84 , the Chinese
      export firm was invited to comment ;     it did not dispute
      the accuracy of the information .
  4.  On the basis of that evidence , the Commission , in
      accordance with Article 10(6) of Regulation (EEC) No
      2176/84 , withdrew its acceptance of the Chinese exporter 's
      undertaking and on the basis of the facts established
      prior to the said acceptance reimposed a provisional anti¬
      dumping duty equivalent to the amount by which the price
      per metre free-at-Community-frontier , before duty , fell
      below 0.56 ECU.6 It also decided following consultations
4 Régulation (EEC) No 2317/85 , OJ L 217 , 14.8.1985 , p. 7 .
5 OJ L 40 , 15.2.1986 , p. 27 .
6 OJ L   3 , 6.01 . 1988 , p. 5.
 ---pagebreak---                                - 3 -
      to reopen the anti-dumping proceeding conceming imports
     of roller chains for cycles origlnating in the People's
     Republic of China.7
  5. The Commission officially notified the exporters and
     importers known to be concerned , representatives of the
     exporting country and Community producers that the
     proceeding was being reopened . It gave the parties
     directly concerned the opportunity to make known their
     views in writing and to request a hearing .
 6.  Three Community producers and two importers submitted
     their views in writing . Neither the Chinese exporters
     nor the importers concerned requested a hearing .
     The Chinese exporter neither replied to the questionnaire
     which had been sent to it nor submitted any other
     information , although the Commission had notified the firm
     in writing that if it failed to cooperate , findings could
     be established on the basis of the facts available .
     (Article 7(7) (b) of Regulation (EEC) No 2176/84).
 7.  The Commission sought and verified all the information it
     considered necessary and carried out investigations at the
     premises of the German producer Union Sils , Van de Loo &
     Co QnbH , Frondenberg , Fédéral Republic of Germany .
     It requested detailed written submissions from all
     Community producers , the Chinese exporter and the
     importers known to be concerned , and checked the
     information received wherever necessary .
 8.  The Commission 's investigations covered the period
     January-December 1987 .
7 See Notice of reopening of proceeding in OJ C 2 , 6.1.1988 ,
  p. 5 .
 ---pagebreak---                                 - 4 -
 D.    DOMPIMG
  9.   In order to flnd out whether imports fram the People's
       Republic of China , which is not a market economy , were
       being dumped , the Commission had or the purposes of the
                            8
       previous proceeding established the normal value of the
       product on the basis of Spanish domestic prices .    Since
       Spain is now a Member State of the Community , the
       Commission , following a suggestion made by the Community
       industry , this time chose Japan as reference country .
      The Japanese product and manufacturing processes are
      comparable to those of the exporting country under
      investigation , and competition on the Japanese market is
      such that prices must be competitive . They are also at a
      level which enables the Japanese manufacturers to make a
      reasonable but not excessive profit . The Chinese
      exporter did not oppose the choice of country .
 10 . Normal value was accordingly worked out on the basis of
      domestic prices on the Japanese market as established by
      the Commission .
 11 . The export prices were based on the prices actually paid
      or payable for the product sold for export to the
      Community .
 12 . In comparing normal value with export prices the
      Commission took account where appropriate , and where
      sufficient evidence was available , of differences
      affecting price comparability , including product quality ,
      conditions of sale and terms of payment . All comparisons
      were made at the ex-works stage .
13 . On the basis of the comparison it was found that all
      exports to the Community during the reference period had
      been dumped . The dumping margin on cif free-at-
      Ccramunity-frontier prices before duty varied depending on
      the importing Member State ; the weighted average was well
_in excess of 50% .
8 OJC 235 , 5.9.1984 .
 ---pagebreak---                                - 5 -
 E.   INJURY
 14 . The evidence available to the Commission shows that
      CammunitY imports of roller chains for cycles originating
      in the People 's Republic of China increased from
      2 100 000 métrés in 1984 to 3 500 000 métrés in 1987 ,
                          ...      ....                       . ....9
      taking China 's market share in the Community from 13% to 26% .
 15 . Taking into account differences in quality , the price of
      the imported goods undercut Community producers' prices
      during the reference period by between 35% and 45% . The
      Chinese exporter 's prices would not even have allowed the
      CammunitY producers to recover their full costs .
 16 . The volume increase in imports and the Chinese exporter 's
      low prices helped bring about a generalized steady decline
      of prices , leading to loss-making sales , a decline in
      Community output and a consequent lowering of capacity
      utilization rates .
      Community production fell from 8 800 000 metres in 1984 to
      8 500 000 metres in 1985 and again to 5 500 000 metres in
      1987 .   In 1987 the Community industry was running at
      under 40% of capacity . While the volume of Chinese
      imports does not entirely match the fall in Community
      production , these imports have nevertheless won
      substantial market shares (30% in the Federal Republic of
      Germany , 36% in the Netherlands and 32% in Italy , those
      three markets alone accounting for 94% by volume of
      Chinese imports ), larger than those held by imports from
      other Community countries . This , coupled with the fact
      that the goods from the People 's Republic of China were
      imported at prices much lower than those
9 Imports from the People 's Republic of China rose as high as
   4 685 000 metres in 1986 . The 1987 figures are
   provisional .
 ---pagebreak---                                - 6 -
      charged by Community producers , indicates that the imports
      in question axe the main cause of the injury sustained by
      the Community industry . The industry experienced a rise
      in unit costs and had to sell its products at prices below
      break-even point .   It thus accumulated losses , a trend
      which in Germany in particular was responsible for job
      losses and the resort in many places to short-time
      working .
17 . The Commission   considered whether the injury might have
      been caused by  other factors , such as the trend of
      consumption in  the Community , a fall in Community exports
      or an increase  in imports from other non-Community
     countries .
     Consomption fell from around 16 000 000 métrés in 1984 to
      14 000 000 métrés in 1985 and stabilized at that level
     until 1987 .
     From 1984 to 1987 Community exports fell by approximately
     700 000 metres .
     As regards other imports , the drop in consumption from
     1984 to 1985 was reflected by a fall of about the same
     order of magnitude in total imports . The available
     statistics for 1986 and 1987 suggest that imports from
     countries such as India , the Soviet Union and Taiwan might
     have contributed to a limited extent to the decline in
     Community sales . However , these imports were lower in
     volume than the Chinese imports and the prices were
     generally higher .
     While these three factors may have had an impact on the
     Community industry they are not in themselves sufficient
     to account for more than a fraction of the injury it
     sustained . Accordingly , the proportion of that injury
     attributable solely to the dumped imports under
     consideration constitutes material injury to the Community
     industry .
 ---pagebreak---                                   - 7 -
  18 . The Community industry is facing such serious difficulties
       that a failure to take action to eliminate the injurious
       effects of dumping would imperil its continued existence ,
       worsening the employment situation in the regions
       concerned .    The Council further considers that the effect
       on prices of the measures envisaged would be negligible in
       terms of the competitiveness of cycle manufacturers and
       nil for the final purchaser of a bicycle . Accordingly ,
       it concludes that it is in the Community 's interest to
       take measures to eliminate injury to the manufacturers
       concerned , in the form of a definitive anti-dumping duty .
  С.   БАТЕ 0? ШТУ
  19 . The extent of injury was taken to be the diffrerenoe
       between the selling price in the Community of the dumped
       goods and the price which would enable the most efficient
       Community producers to make an adequate return on their
       sales .   On that basis , given the margin of undercutting ,
       the Council considers a duty of 35% necessary to eliminate
                 vGiven trie vioLation_of the undertakinq , )
       the injury77'’_i t further^considers that ihTordef to ensure
       the effectiveness of the measure aid prevent
       circumvention , the ad valorem duty should be backed up by
       a variable duty .     Thus the definitive duty will be
       equivalent either to the amount by which the free-at-
       Community-frontier price (before duty) paid by the first
       Community importer falls below 0.65 EOT per metre , or to
       35% ad valorem , whichever is the higher ,
 HAS ADOPTED THIS REGULATION :
                                Article 1
 The duty imposed by Council Régulation (ESC ) No 338/ 86 of
                   1Q
  14 February 1986 is hereby repeaied .
1 0 OJ L 40 , 15.2.1986 , p. 25 .
 ---pagebreak---                                  - 8 -
                               Article 2
 1.   A definitive anti-dumping duty is hereby imposed on
      imports of 1/2 " x 1 /8 " roller chain for cycles ,
      corresponding to Combined Nomenclature code ex 7315 11 10 ,
      originating in the People 's Republic of China .
 2.   The duty sha.1 1 be equivalent either to the amount by which
      the free-at-Community-frontier net prioe per metre , before
      duty , falls below 0.65 ECU , or to 35% of the free-at-
      Community-frontier net price per metre , before duty ,
      whichever is the higher .
      The free-at-Community-frontier prices shall be net prices
      where the terms of sale are such that payment is to be
      made within thirty days of the date of delivery . They
      shall be increased or reduced by 1% for each month by
      which this period is shortened or lengthened .
 3.   The provisions in force conceming customs dutles shall
      apply .
                               Article 3
Given the violation of the undertaking ,
a mounts secured by way of the provisional anti-dumping duty
imposed by Regulation (EEC) No 14/88 shall be definitively
collected at a maximum rate of 35% .
                               Article 4
This Regulation shall enter into force on the day following its
publication in the Official Journal of the European
Communities .
It shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                      For the Council