CELEX: 51977PC0322
Language: en
Date: 1977-07-04
Title: PROPOSAL FOR COUNCIL REGULATION (EEC) concerning the application of the antidumping, duty on ball bearings and tapered roller bearings, originating in Japan (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 322
Vol. 1977/0107
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                     COM(77)322 final.
                                                                  Brussels . 4 July- 1977
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                        PROPOSAL FOR COUNCIL
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                                                       A -''>V ■/
                      REGULATION (EEC )            :<
       concerning -the application of the antidumping ,
       duty on ball "bearings and tapered roller "bearings ,
                     originating in Japan
          ( submitted to the Council "by the Commission)
 C0M(77)  322 final.
 ---pagebreak---                          Explanatory Memorandum
       By Regulation ( EEC ) n° 261/77 of 4 February 1977 , (!) "the Commission
       imposed a provisional antidumping duty on ball bearings , tapered
       roller bearings and parts thereof , originating in Japan . The
       Commission measure was extended by Council Regulation ( EEC )
           944/77 ( 2 ).         .                                    .
       Since then the Commission 's services have continued their investi­
      gation of this matter in collaboration with the Member States .
       This further examination has confirmed the exi stance of dumping
      and of resultant material injury .
      In the meantime the four major Japanese producers have offered
      undertakings to the Commission to revise their prices , which
      undertakings can be considered as acceptable .
      In the circumstances , a definitive       antidumping duty should
      be imposed      but its application could be suspended subject to
      a close monitoring of the effects on the market of the under­
      takings given . If the Commission establishes that there are violations ,
       immediate action should be taken .
      It would , moreover , be inappropriate to release the amounts already
        secured by way of the provisional duty in respect of the major
       Japanese firms.
      The Commission therefore submits to the Council the attached
      proposal for a Regulation concerning the application of the antidumping
      duty on ball bearings and tapered roller bearings , originating
      in Japan .               ;
( 1)0J     n°  L 34 , 5.2.1977, p. 60
( 2 ) 0J No. L 112, 4.5.1977, p. 1
 ---pagebreak---                          Proposal for Council
                        Regulation ( EEC ) n°      hi
                                of            1977
              concerning the application of the antidumping
              duty on ball bearings and tapered roller bearings ,
              originating in Japan
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community
and in particular Article 113 thereof ,
Having regard to Council Regulation ( EEC ) n° 459/68 of 5. April 1968 on pro­
tection against dumping or the granting of bounties or subsidies by coun­
tries which are not members of the European Economic Community ( l ), as
amended by Regulation ( EEC ) n° 2011/73 ( 2), and in particular Article 17
thereof ,
Having regard to the proposal made by the Commission after hearing the
opinions expressed in the Advisory Committee set up under Regulation ( EEC )
N° 459/68 , .
Whereas the Commission has received a complaint submitted in the name of
the Community roller bearing industiy setting out evidence as to the existen­
ce of dumping of like produots originating in Japan , as well as material
injury resulting therefrom ;
Whereas , since the information received indicated that the complaint was
admissible and that defensive measures against dumping might be necessary ,
the Commission officially notified the representatives of the exporting
country and the importers and exporters known to be concerned , published
in the Official Journal of the European Communities of 13 November 1976
a notice of^the initiation of an inquiry concerning imports of ball bearings ,
tapered roller bearings and parts thereof originating in Japan ( 3 ) and
commenced an     examination of the facts in collaboration with the Member
States :
 ( 1 ) OJ n° L 93 , 7-4.1968 , p.l .
 ( 2) OJ n° L 206 , 27.7.1973 , p.3 .
 ( 3) OJ n° c 268. 13.11.1976, p. 2.
 ---pagebreak--- Whereas , since preliminary examination of the matter showed that there
 was dumping and since there was sufficient evidence of injury and the
 interests of the Community called for immediate intervention , the Commission
"by Regulation ( EEC ) n° 26l/77 ( l )» imposed a provisional antidumping duty
 on ball hearings , tapered roller bearings and parts thereof , originating
 in Japan ,- which was extended by Regulation ( EEC ) n° 944/77 ( 2 );
Whereas , in the course of the examination of the matter , completed
after the imposition of the provisional antidumping duty , the Commission
gave interested parties the opportunity to make known their views in
writing , heard the interested parties and gave to the parties directly
concerned the opportunity orally to develop their views and to meet and
to present opposing views and rebuttal arguments and carried out on–
 spot investigations in the major Japanese firms and in their .subsidiaries
in the Community ;
Whereas , because of the multiplicity of types of the product concerned ,
this examination was based on a certain number of types representative
of the price–structure of the products concerned ;
Whereas , the normal value was established on the basis of the effective
domestio prioes of those products in Japan ;
Whereas , because of the association between the Japanese exporters and
the majority of the importers in Europe , the export prices were construc­
ted on the basis of the prices at which the imported products were first
resold to an independent buyer , due allowance being made for costs and
profits between importation and resale ;
Whereas the price comparisons were made at the ex-factory level , and in
respect of sales made at the same time , due allowance having been made ,
on their merits , for differences affecting price comparability and in
particular for selling ,credit , commission , advertising , transport , packing
and .ancillary costs and for differences in the conditions and terms of
 sale and in taxation ;
( 1 ) OJ N® L 34 , 5.2.1977 , P. 60, '                                 ./•
( 2) OJ N° L 112 , 4.5.1977, P.l .
 ---pagebreak---   Whereas this examination of the matter shows that dumping has taken
  place , the margin of which varies considerably from transaction to
  transaction but , on the average , exceeds 15$ for a major part of the Community
  Whereas , with regard to injury to the industry concerned , the evidence
  available to the Commission shows that imports into the Community of the
  products concerned originating in Japan have considerably increased ,
  since , from a level of approximately 5*500 tonnes in 1968 they increased
  to 15.600 tonnes in 1974 and 19.000 tonnes in 1975 » this increase having
  continued in 1976 in most of the regions principally concerned ;
  Whereas , moreover , these products are offered for sale on the Community
  market at prices which generally undercut the prices prevailing among
  Community producers of like products , and exercise a depressive effect
  on them ;
  Whereas , as a result of this , the imports concerned have been able to acquire
  an average market share in the markets most particularly affected , that is ,
  in Germany , Prance and the United Kingdom , of 15/5 for ball bearings and
  of 5%      tapered roller bearings ; whereas the market share is consi­
  derably higher in one of the markets , where it represents 22 and 8%
  respectively ; whereas for certain types , on which the Japanese market
  strategy is concentrated , this market share is considerably higher.
  Whereas this development has taken place to the detriment of the Community
  industry which is in a difficult situation , characterised by a reduction of
  10$ in production from 1974 to the first half of 1976 in the regions most
  affeoted , where the major part of the Community industry is established ,
  by redundancies and short–time working for the personnel of the enter­
  prises concerned , and by a reduotion in profits or the appearance of losses
  for the firms concerned ;
  Whereas , therefore , the facts as finally established show thatmaterial
  injury has been caused to "the Community industry and that , due consideration
  having been given to all factors which , taken together adversely affect ;
  the situation of this industry , the dumped imports are demonstrably the f
. prinoipal cause of suchinjury : .
 ---pagebreak--- Whereas , xn the circumstances , the interests of the Community call for
the imposition of a definitive antidumping duty of        on imports of "ball bea­
rings and tapered roller bearings of Japanese origin and for the definitive co
leotion of the amounts secured by way of provisional duty in respect of the fo
major Japanese producers up to the rate mentioned . above ;
Whereas , however , the four major Japaneseproducers have given under­
takings to the Commission to revise their future prices ;
Whereas , in these circumstances , the application of the definitive
antidumping duty can be suspended ;
Whereas , however , it is necessary that the Commission olosely monitor
the observance of the undertaking s and take immediate action if there -
is any violation or evasion or if the undertakings are withdrawn ,
HAS ADOPTED THIS REGULATION :
                             Article 1
1 * A definitive antidumping duty of 15/S on the basis of the value
    declared in conformity with Regulation ( EEC ) n° 375/69 ( l ) is hereby
    imposed on ball bearings and tapered roller bearings , falling within
    Common Customs Tariff heading N° ex 84*62 and corresponding to NIKEXE
    codes 84. 62-11 and 84.62–17 and originating in Japan . The provisions
    in force for the collection of customs duties shall apply for the ;
    collection of this duty.
            t
2. The application of this duty is hereby suspended without prejudice'
    to the provisions of Art . 2 hereof.
                             Article 2
1 . The Commission shall closely monitor the observance of the undex*-
    takings given by the major Japanese bearings producers to revise
    their prices .
    ( 1 ) OJ N# L 52 , 3.3.1969 , p.l .
 ---pagebreak---   If the Commission finds that these undertakings are "being evaded or
  no longer observed or have "been withdrawn , and if , having consulted the
  Member States , it is of the opinion that , as a result , protective
  measures are necessary , it shall forthwith terminate the suspension
" of the " application of the duty imposed under Article 1 hereof.
                          Article 3
  The amounts secured by way of provisional duty under the provisions of
  Regulation ( EEC ) n° 26l/77 extended by Regulation ( EEC ) n° 944/77 in res­
  pect of products manufactured and exported by the producers referred to
 hereunder shall be definitively collected to the extent that they do
 not exceed the rate of duty fixed in this Regulation .
      - KOYO SEIKO COMPANY Limited
      - NACHI-FUJUCOSHI CORPORATION
      - NTN TOYO BEARING COMPANY Limited
      - NIPPON SEIKO K.K.
                          Article 4
  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
             direotly applicable in all Member States.
             Done at Brussels                     For the Council