CELEX: 51996PC0122
Language: en
Date: 1996-03-25
Title: Proposal for a COUNCIL REGULATION (EC) imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5" microdisks) originating in Malaysia, Mexico and the United States of America, and collecting definitively the provisional duty imposed.

^^       I   COMMISSION Oh THE EUROPEAN COMMUNITIES
  ***      j
                                                   Brussels, 25.03.1996
                                                   COM(96) 122 UnaJ
                                   Proposal l'or a
                         COUNCIL REGULATION (EC)
imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5"
  microdisks) originating in Malaysia, Mexico and the United States of America, and
                 collecting definitively the provisional duty imposed.
                          (presented by the Commission)
 ---pagebreak---  ---pagebreak---                          EXPLANATORY MEMORANDUM
1. The Commission, by Regulation (EEC) No 2426/95 of 14 October 19951 imposed a
   provisional duty on imports of certain magnetic disks (3.5" microdisks) originating in
   the United States, Mexico and Malaysia.
2. Following the adoption of the provisional measures, the interested parties, who so
   requested, were heard by the Commission and made written submissions. Upon
   request, parties were informed of the essential facts and considerations on the basis of
   which it was intended to recommend the imposition of definitive duties and the
   definitive collection of imports secured by way of a provisional duty. They were also
   granted a period within which to make representations subsequent to the disclosure.
3. The oral and written comments submitted by the parties were considered and, where
   appropriate, the Commission's findings were modified to take account of them.
4. The facts as finally established confirm dumping for exporters in Malaysia and non-
   cooperating exporters in the United States and Mexico as well as injury to the
   Community industry caused thereby, especially demonstrated by price depression and
   resulting lack of profitability.
   OJNOL249, 17,10.95, P.3
 ---pagebreak--- 5. In these circumstances, the Commission considers that it is in the Community interest
   to adopt definitive measures intended to eliminate the injurious effect of the dumped
   imports concerned. Consequently, in accordance with Article 9 of Council
   Regulation (EEC) No 3283/942, the Commission, after consultation within the
   Advisory Committee, proposes the imposition of definitive anti-dumping duties on
   imports of certain magnetic disks (3.5" microdisks) originating in the United States,
   Mexico and Malaysia.
6. In view of the dumping margins established, and the seriousness of the injury caused
   to the Community industry, it is also proposed that the amounts secured by way of
   provisional anti-dumping duty be definitively collected to the extent of the amount of
   the duty definitively imposed.
   OJNOL349, 31.12.1994, P. 1
 ---pagebreak---                                    Council Regulation (EC) N°
                                               of
   imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5"
     microdisks) originating in Malaysia, Mexico and the United States of America, and
                      collecting definitively the provisional duty imposed.
The Council of the European Union,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 3283/94 of 22 December 1994 on
protection against dumped imports from countries not members of the European
Community3, as last amended by Regulation (EC) No 1251/954, and in particular
Article 9 thereof,
Having regard to the proposal from the Commission submitted after consulting the
Advisory Committee,
Whereas,
3
    OJ NO L 349, 31.12.1994, P. 1.
4
    OJ NOL 122,02.06.1995, P. 1.
 ---pagebreak---                                    A. Provisional measures
(1)     The Commission, by Regulation(EC) No 2426/955, hereinafter referred to as "the
        provisional duty Regulation", imposed a provisional anti-dumping duty on
        imports into the Community of certain magnetic disks (hereafter referred to as
        3.5" microdisks) originating in Malaysia, Mexico and the United States of
        America, and falling within CN code ex 8523 20 90.
                                   B. Subsequent procedure
(2)     Subsequent to the imposition of the provisional anti-dumping duty, one
        cooperating Malaysian producer and one company producing in both the United
        States and Mexico, which had explicitly informed the Commission of its intention
        not to participate in the proceeding, were heard by the Commission. Both parties
        also presented written submissions making known their views on the findings.
(3)     On request, parties were informed of the essential facts and considerations on the
        basis of which it was intended to recommend the imposition of definitive duties
        and the definitive collection of amounts secured by way of the provisional duty.
        They were also granted a reasonable period within which to make representations
        subsequent to disclosure.
(4)     Because of the volume and the complexity of the data examined, the investigation
        could not be concluded within the time limit provided for in Article 6(9) of
        Regulation (EC) No 3283/94, (hereinafter referred to as "the basic Regulation").
    OJ NO L 249, 17.10.1995, P. 3.
 ---pagebreak---                 C. Product under consideration and like product
(5) As no further arguments have been presented regarding the product under
    consideration and the like product, the findings set out in recitals (8) to (12) of the
    provisional duty Regulation are confirmed.
                                   D. Dumping
(6) For the purpose of the definitive findings, dumping was established on the basis
    of the same methods used in the provisional determination of dumping. The
    dumping margin calculations were only modified to take account of clerical errors
    or technical amendments as no new facts and arguments on the methods were
    presented by the parties.
(7) In the light of the foregoing, the findings set out in recitals (14) to (20) of the
    provisional duty Regulation, with the appropriate modifications, are confirmed.
    Dumping margins
    (a) Cooperating producers
(8) As far as the cooperating producers in the United States of America and Mexico
    are concerned, the findings in recital (21) of the provisional duty Regulation are
    confirmed.
 ---pagebreak--- (9)  On the basis of technical modifications made to the calculations of normal value
     and export price for one cooperating producer in Malaysia, the definitive dumping
     margins calculated by the Commission, expressed as a percentage of the free-at-
     Community-frontier price for each of the companies concerned are as follows:
     - Mega High Tech       31.8%
     - Diskcomp             46.4%
     (b) Non-cooperating producers
(10) In the absence of comment, the findings in recitals (23) and (24) of the provisional
     Regulation are confirmed.
                              E. Community Industry
(11) No new arguments were presented with regard to the definition of the Community
     industry. The findings set out in recitals (25) to (28) of the provisional duty
     Regulation are, therefore, confirmed.
 ---pagebreak---                                         F. Injury
1.   Prices of the dumped imports
(12) The producer in the United States and Mexico referred to at recital (2) above
     objected to the use of Eurostat data as positive evidence of price undercutting for
     non-cooperating companies, on two grounds. First, as its distribution system on
     the Community market is similar to those American and Mexican producers
     which cooperated, any undercutting on its part would also have been de minimis.
     Secondly, as the CN code under which Eurostat data is collected for 3.5"
     microdisks is a "basket" category covering more than the product concerned,
     judgements on the basis of these figures are likely to be inaccurate.
     These contentions cannot be accepted.
     In the light of this producer's explicit decision not to participate in the proceeding,
     its claim that price undercutting on its part would also have been de minimis is
     unsupported by any evidence, and, consequently, amounts to no more than
     assertion.
 ---pagebreak---      As to the second objection, it is the standard practice of the Community
     institutions to use Eurostat data as the best positive evidence available of import
     volumes and prices in the absence of more reliable indications from other sources.
     Further, the methodology employed by the Commission in this and the two prior
     proceedings (see recital (7) of the provisional duty Regulation) to address the
      "basket" nature of the CN code in question has been found to be reasonable and
     has not been criticised by the parties involved. In any event, the producer
     concerned has provided no evidence of whether, or to what extent, Eurostat
     figures may be misleading, as far as the product in question is concerned.
2.   Other Injury findings
(13) No new facts and arguments were received in connection with cumulation,
     causality and the other injury findings. The findings in recitals (30) to (45) of the
     provisional duty Regulation are therefore confirmed.
                               H. Community interest
(14) No representations have been received in respect of the Community interest in
     this proceeding and no comments have been made by any interested parties on the
     provisional findings regarding Community interest.
     The findings in recitals (46) to (50) of the provisional duty Regulation are,
     therefore, confirmed.
 ---pagebreak---                                        I. Duty
(15) No comments were received on the methodology adopted by the Commission for
     the establishment of the duty rates to be applied, as set out in recitals (51) to (55)
     of the provisional duty Regulation.
     These are, therefore, confirmed, and, as the dumping margins definitively
     determined exceed the injury thresholds established for the cooperating producers
     in Malaysia, measures should be imposed at the level of these injury thresholds.
     As the injury thresholds established for the cooperating producers in Mexico and
     the United States are de minimis, no definitive anti-dumping measures should be
     imposed on imports of the like product manufactured by these producers.
                       J. Collection of the provisional duties
(16) In view of the dumping margins established, the injury caused to the Community
     industry, and of the latter's precarious financial situation, it is considered
     necessary that amounts secured by way of the provisional anti-dumping duty for
     all companies should be collected definitively at the duty rate definitively
     imposed,
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
                                      Article 1
1.   A definitive anti-dumping duty is hereby imposed on imports of 3.5" microdisks
     used to record and store encoded digital computer information, falling within CN
     code ex 8523 20 90 (Taric code 8523 20 90 10), and originating in Malaysia,
     Mexico and the United States of America.
2.   The rate of duty applicable to the net, free-at-Community-frontier price, not
     cleared through customs, shall be as follows :
               Country                  Rate of duty (%)          Taric additional code
     Malaysia                                   46.4                       8858
     Mexico                                     44.0                       8882
     United States                              44.0                       8857
     with the exception of imports which are manufactured and sold for export to the
     Community by the following companies which shall be subject to the rates of duty
     mentioned below:
     Country and producer               Rate of duty (%)          Taric additional code
     a) Malaysia
        - Mega High Tech                       12.8%                       8855
        - Diskcomp                             26.4%                       8856
                                          10
 ---pagebreak--- 3.      The duty shall not apply to imports of the product defined in paragraph 1
        manufactured and sold for export to the country by the following companies :
        Country and producer                                            Taric additional code
        b) Mexico
           -Verbatim                                                             8854
        c) United States
           - 3M                                                                  8853
           - TDK                                                                 8853
           - Verbatim                                                            8853
4.      Unless otherwise specified, the provisions in force concerning customs duty shall
        apply.
                                         Article 2
The amounts secured by way of the provisional anti-dumping duty pursuant to Regulation
(EC) No 2426/95 shall be definitively collected up to the duty rate definitvely imposed.
                                         Article 3
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 entirety and directly applicable in all Member
States.
Done at Brussels,                                                    For the Council
                                             11
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                                                             COM(96) 122 final
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