CELEX: 51987PC0359
Language: en
Date: 1987-07-10
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of standardized multi-phase electric motors having an output of more than 0.75 kW but not more than 75 kW, originating in Yugoslavia (presented by the Commission)

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DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 359
Vol. 1987/0204
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(87) 359 final
                                               Brussels , 10 July 1987
                                 Proposal for a
                            COUNCIL REGULATION ( EEC )
            imposing a definitive anti-dumping duty on imports of
standardized multi-phase electric motors having an output of more than 0.75 kW
              but not more than 75 kW , originating in Yugoslavia
                        ( presented by the Commission )
                                         m 4           .9.      m
C0M(87 ) 359 final                       11                    M
 ---pagebreak---                                                                                    SS
                                EXPLANATORY MEMORANDUM
                                         4
 1 . By Regulation ( EEC ) No 1043/ 87 the Commission Imposed a provisional
ant1-dump1ng duty on Imports of multi-phase electric motors having an output
of more than 0.75 ku but not more than 75 kW, originating 1n Yugoslavia .
 2 . Since the provisional measure was imposed/ the Commission has extended its
 Investigation on normal value and Injury .
 The Interested parties have been informed of the definitive results .
 3 . None of the arguments put forward by the exporters or importers was
 sufficiently convincing to call into question the substance of the preliminary
 conclusions concerning the existence of dumping and Injury .
 4 . On the question of dumping /        the definitive normal value /         like the
 provisional normal value, was established for each of the Yugoslav
 producers /exporters on the basis of prices charged on their domestic market .
  For each exporter the adjustment of the normal value was revised to make
 allowance for conditions of payment and credit In Yugoslavia, as the
  Interested parties furnished proof that a request for this to be done was
  justified .
  For all the motor types 1n the representative sample, the definitive weighted
  average dumping margins represented the following percentages of the
  free-at -Commun1ty-front1er price, not cleared through customs , for the three
  Yugoslav exporters :
                Elektrokovlna        98%
                Rade-Koncar         109%
                Sever                87%
  5 . On the question of injury, all the preliminary conclusions of the
  Commission were confirmed 1n the final phase of the Investigation . The only
  two arguments of any substance put forward by the Yugoslav side related to the
  question of aggregating the Imports and market shares of the three exporters
  and to the relatively low overall market share of the Imports in question .
  1 0J L 102, 14.4.1987, p. 5 .
20 'd                              T08I8T2-2-2E XtfJ 8EIX 063Q Xflda ØE : ZT IB , EØ"inf
 ---pagebreak---                                             - 2 -
 The first argument was refuted since the motors 1n question are standardized
 and therefore in competition with each other , which Is a reason for grouping
 them together .
 As for the second argument , the Commission 's investigation reveaLed “ and this
 1s not being disputed by the exporters - that the overall market share of
 Yugoslav imports between 1982 and 1985 had been at least 3.2% to 3.3% for the
 Community as a whole, which does represent 8 significant share of the
 Community market . Moreover , over the same period the penetration by Yugoslav
 imports increased substantially on the two markets where these Imports are
 concentrated ( Italy and Denmark ).
 6 . Whatever the ease , the preliminary conclusions of the Commission regarding
 the form and rate of the anti-dumping duty to be Imposed remain unchanged .
 The ant1-dump1ng duty proposed 1s therefore a variable duty reflecting the
 difference between a minimum price expressed in ECU for each type of motor and
 the price to the first independent buyer .         In quantitative terms , this measure
 will    result  1n an    increase in       import prices      for Yugoslav motors of
 approximately 30% .   This definitive duty 1s comparable , allowing for certain
 differences in the physical characteristics of Yugoslav motors compared to
 motors from the state-trading countries , to that finally Imposed by the
                                                                                     2
 Council on Imports of motors originating in the state-trading countries .
 7
    Councll Régulation ( EEC ) No 864 / 87 ; OJ No L 83 , 27.3.87 , p. 1 .
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 ---pagebreak---                                          • PROPOSAL FOR
                        COUNCIL REGULATION ( EEC )
imposing a definitive anti-dumping duty on imports of standardised multi-phase
electric motors having an output of more than 0.75 kW but not more than 75 kW,
originating in Yugoslavia
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 2176/ 84 of 23 July 1984 on
protection against dumped or subsidized Imports from countries not members of
the European Economic Community , and in particular Article 12 thereof ,
Having regard to the proposal from the Commission presented after consultation
within the Advisory Committee as provided for under that Regulation ,
Whereas :
 A.    Provisional measures
 ( 1 ) Commission Regulation ( EEC ) No 1043/87^ imposed a provisional
 anti-dumping duty on imports of standardized multi-phase electric motors
 having an output of more than 0.75 kW but not more than 75 kW, originating in
 Yugoslavia .
 B.    Further proceedings
 ( 2 ) After the imposition of the provisional duty,            and within the period
 provided     for   by   Regulation       ( EEC ) No 1043/ 87,   the   three      Yugoslav
 producers / exporters of the motors in question ( Rade-Koncar Zagreb ;             Sever ,
 Subotica; Elektrokovlna, Maribor ) submitted written observations and requested
 a hearing from the Commission .           The latter Informed them in detail of the
 facts and considerations on which its provisional conclusions had been based
 and on the basis of which it intended to propose the imposition of a
 definitive duty and the collection of the amounts secured by way of the
 provisional anti-dumping duty .
 20J No L 201 , 30.7.1984, p. 1 .
   OJ No L 102 , 14.4.1987 , p. 5 .
MTd                                 I08I8T2-2-26 XdJ 8£I>1 069Q XfldØ 2E : ZI Z8 < EØ'Tlf
 ---pagebreak---                                           - 2 -
 All parties were given the opportunity to make known their points of view on
 these conclusions within a prescribed period , and any observations they made
 were taken Into account .
 ( 3 ) In addition , the Commission made on-the- spot checks on three Italian
 importers of Yugoslav motors ;
 - Ceam , Inveruno ( Milan )
 - Incontrera 4 Wenninger , Milan
 - Smem , Monza
 C.    Dumping
 (4)    The arguments put forward by the Yugoslav exporters following the
 preliminary establishment of dumping announced in Regulation ( EEC ) No 1043/ 87
 related essentially to the level of the allowance for conditions of payment in
 Yugoslavia , the question of the allowance for inflation in Yugoslavia between
 the date of sale and the date of payment , the question of the exchange rate to
 be used for converting the Yugoslav dinar , and the question of differences in
 the cost of Yugoslav raw materials and imported raw materials .
  (5)   For each of the three producers / exporters ,       the adjustment of the normal
 value was revised to make allowance for conditions of payment and of credit in
 Yugoslavia , since the interested parties furnished proof that a request for
 this to be done was justified .
  ( 6 ) On the other hand , none of the arguments put forward in support of the
 three other requests for allowances was sufficiently convincing to call into
 question the Commission’s observations as set out in points 18 , 19 and 22 of
  Regulation ( EEC ) No 1043 / 87 .   In common with the Commission , the Council
  therefore believes that these requests must be rejected for the reasons
 outlined by the Commission 1n the said Regulation .
  ( 7) /without prejudice to the revision of the adjustment referred to in
  point 5 , the considerations already advanced by the Commission with regard to
  the existence of dumping are therefore confirmed by the Counci l ./
  The definitive weighted average dumping margins for all the motor types of the
  producers / exporters concerned in the representative sample , duly corrected to
  allow for the revised adjustment for conditions of payment ,               represent the
  following percentages ;    Elektrokovina , 98% ; Rade-Koncar , 109% ; Sever , 87% .
S0'd                                T08I8T2 - 2- 2E XbJ 8EI>1 363Q Xrrø EE : ZI Z8 , EØ'ini
 ---pagebreak---                                             - 3 -
 0.     Injury
 ( 8 ) None of the producers / exporters 1n question has submitted to the
 Commission any argument sufficiently convincing to call into question the
 conclusion that imports of the Yugoslav standardized multi-phase electric
 motors 1n question caused material injury to the Community industry concerned .
 < 9)    The Commission     has therefore   confirmed the   reasons which    led it     to
 conclude that injury existed ,        as set out 1n point 26 et seq .    of Regulation
 ( EEC ) No 1043 / 87 .
 ( 10) The company Rade-Koncar claimed that the imports and market shares of the
 three Yugoslav exporters should not be aggregated since they are legally and
 commercially Independent of each other .
 Despite the arguments put forward by Rade-Koncar , the Council shares the
 Commission 's view that the effect of all Yugoslav imports of the motors in
 question should be considered cumulatively . This is because the investigation
 has revealed the fungible nature of these products - 1.e .          the fact that they
 are mutually interchangeable and comparable 1n terms of their physical
 characteristics - and the similarity of prices charged by the different
 Yugoslav exporters ; for the reasons indicated in point 28 of Regulation ( EEC )
 No 1043 / 87 , the Yugoslav standardized multi-phase electric motors are
 therefore in competition with each other and with similar products on the
 Commnity market .
  ( 11 ) The company Sever stressed that the share of the overall Community market
 held by Yugoslav imports had stagnated during the period which the Commission
 took Into consideration for its analysis of Injury ( 1982-85 ).
 The Commission 's investigation revealed - ( cf . points 26 and 27 of Regulation
  ( EEC ) No 1043 / 87 ) - that the overall market share of Yugoslav imports had been
 at least 3.2% to 3.3% for the Community as a whole ,             thus representing a
 significant share of the Community market ;         moreover , during the same period
 Yugoslav penetration of the two markets where its Imports are concentrated
 grew substantially , from 3.9% to 4.8% in Italy and from 13% to 16% 1n Denmark .
90 'd                                Τ08Ϊ8Τ2-2-28 χω 881)1 363α ΧΠέΗ   ΡΕ-λΙ 2.8 , 80'ΊΠΓ
 ---pagebreak---                                         - 4 -
 ( 12 ) In spite of the arguments put forward by the Yugoslav exporters , the
 Council therefore confirms the analysis presented by the Commission 1n
 points 26 to 33 of Regulation ( EEC ) No 1043 / 87 In its entirety, and considers
 that the injury caused by Imports of Yugoslav motors being dumped 1n massive
 proportions must , taken in isolation , be considered to be material injury
 within the meaning of Article 4(1 ) of Regulation ( EEC ) No 2176/ 84 .
 Although production and sales of standardized multi-phase eleetrle motors by
 Community manufacturers have been rising since 1982 , owing to the revival of
 consumption of electric motors In the Community, the fact remains that the
 extremely low import prices of Yugoslav motors have significantly contributed
 to the downward pressure on Community Industrial manufacturers' prices , almost
 all of which continued to experience losses 1n 1985 1n the standardized motors
 sector . This pressure exerted by Yugoslav Imports on Community manufacturers'
 prices is shown by the existence of considerable undercutting varying between
 15% and 35% of the reference cost price and between 10% and 30% of the selling
 prices of the most efficient producers .
 In addition ,    the margin of undercutting 1s wholly attributable to dumping by
 the three Yugoslav exporters .
 E.     Community interest
  ( 13 ) The Council considers that Community interests require the adoption of a
 trade protection measure against the Imports being dumped , 1n order to
 eliminate the Injury caused .
 However ,     given   the  intra-Community    competition    which   exists    1n   the
 standardized multi-phase motor sector and the need to maintain as far as
 possible the competitiveness of the downstream Industries , the Council
 believes it appropriate to determine the level of the measure to be
 taken - whatever its form - on the basis of the cost price of the most
 efficient Industrial-scale manufacturers .
  F.    Undertakings
  ( 14) /Certaiq/ /the three/ producers /exportera offered the Commission
 undertakings concerning their future exports to the Community .
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 ---pagebreak---                                              - 5 -
 ( 15 ) The Commission did not accept these undertakings . It informed the
 producers / exporters concerned of the reasons for Its decision .
 6.     Definitive collection of the amounts secured by way of provisional duty ;
         Imposition of a definitive duty
 ( 16) In view of the above , the Council considers that the protection of
 Community interests calls for the imposition of a definitive anti-dumping duty
 on imports of the products in question originating in Yugoslavia and the
 collection of the amount secured by way of the provisional anti-dumping duty
 imposed by Regulation ( EEC ) No 1043 / 87 .
 ( 17 ) As regards the form and rate of the duty to be imposed , the Council
 approves the considerations set out by the Commission in point 35 of
 Regulation ( EEC ) No 1043 / 87 .
 The Council considers that , in order to avoid discrimination and for the same
 factual reasons , the form and rate of the definitive anti-dumping duty to be
 imposed        must  be    similar - al'owing     for   differences       in     the    physical
 characteristics of the products - not the same as those finally imposed by the
 Council on imports of motors originating in the state-trading countries .^
 - The most appropriate type of anti-dumping duty is therefore a variable duty
       reflecting the difference between a minimum price expressed in ECU for each
       type of motor and the price to the first independent buyer .
       As certain importers , in particular Sever Agrovojvodina of Copenhagen and
       Sever Agrovojvodina of Munich , are Linked to an exporter by an association
       or a compensatory arrangement with a third party within the meaning of
       Article 2(8 ) ( b ) of Regulation ( EEC ) No 2176/ 84, the Council considers it
       necessary to take as a reference point in calculating the anti-dumping duty
       for those importers the price paid by the first buyer not associated with
       the exporter .       In the case of the importers in question , the net unit
       price , free-at -Community-frontier, will normally correspond to the customs
       value as determined in accordance with Article 6 of Council Regulation
        ( EEC ) No 1224 / 80 of 28 May 1980 on the valuation of goods for customs
                   4
       purposes .
  ?Counc1 l Régulation (EEC) No 864/87 - 0J No L 83, 27.3.87, p. 1 .
    0J No L 134, 31.5.1980, p. 1 .
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 ---pagebreak---                                           - 6 -
   - As regards the level of the minimum price , the Council considers that the
        definitive anti-dumping duty should be fixed at the same level as the
        provisional anti-dumping duty , for the same reasons as those already
        Indicated by the Commission in Regulation ( EEC ) No 1043/ 87 , with particular
        reference to the gross profit margin attributable to the more efficient
        industrial producers .
        The rate of the definitive anti-dumping duty is therefore much lower than
        the dumping margins finally established .       However , having regard to the
        price judged necessary to provide efficient Community producers with a
        reasonable profit , 1t should be sufficient to remove the Injury caused by
        the imports concerned to the Community standardized multi-phase electric
        motor Industry .
   ( 18 )  Finally,   the Council has established that the maximum customs duty
   applicable in Spain and Portugal 1n 1986 and 1987 to the standardized
   multi-phase electric motors in question was greater than the Common Customs
   Tariff duty applicable to the same products . In order to prevent imports Into
   these Member States from being subject to higher overall duties , it was judged
   appropriate to take measures ensuring that the cumulative amounts of the
   anti-dumping duty and the non-aligned customs duties in Spain and Portugal are
   not greater than the cumulative amounts of the Common Customs Tariff duty and
   the ant1-dump1ng duty .
I
  60 'd                             108X8JZ -Z- 2E X«J 8Eix D63Q xnyg  SE : zi /.s , eønnr
 ---pagebreak---                                                    - 7 -
HAS ADOPTED THIS REGULATION :
                                                Article 1
    ( 1 ) A definitive anti-dumping duty is hereby Imposed on Imports of
    standardized multi-phase electric motors having an output of more than 0.75 kW
    but not more than 75 kW, falling within subheading ex 85.01 Bib) of the
    Common Customs Tariff , corresponding to Nimexe codes ex 85.01-33, ex 85.01-34
    and ex 85.01-36 , originating in Yugoslavia .
    ( 2 ) The expression " standardized multi-phase motors " shall Include all motors
    which are subject to International standardization , 1n particular to that of
    the International Electrotechnical Commission ( IEC ).                The motors 1n question
    have the following standard rotation speeds : 3 000 rpm , 1 500 rpm, 1 000 rpm
    or 750 rpm ; the following standard output : 1.1 , 1.5 , 2.2 , 3 , 4, 5.5, 7.5 ,
    11 , 15, 18.5 , 22 , 30, 37, 45 , 55 or 75 kW and the following standard spindle
    heights : 80, 90 , 100, 112, 132 , 160, 180, 200, 250, 280 or 315 millimetres .
    < 3 ) The amount of duty shall be equivalent , for each type of motor , to the
    difference between the net unit price , f ree-at - Commun1ty- front1er, not cleared
    through customs , and the price specified 1n the Annex .
    The said free-at - Community- f rontier price , not cleared through customs , shall
    be net if the actual terms and conditions of sale provide that payment shall
    be made within 30 days of the date of dispatch ; it shall be lowered by 1% for
    each month by which payment 1s actually deferred .
     ( 4) ( a ) Where    1t   appears    to   the   customs   authorities      that   there  1s  an
                association or a compensatory agreement between the exporter and the
                Importer or a third party within the meaning of Article 2(8 ) ( b ) of
                Regulation ( EEC ) No 2176/ 84,       the price actually paid or payable for
                the product sold for export to the Community may not be used as a
                reference        in        establishing        the       net        unit     price ,
                free-at - Community-f rontier , mentioned 1n paragraph 3 .
                The unit price ,         free-at- Commun1ty- f rentier ,     shall in this case
                correspond to       the    customs   value  as    1t  would     be   determined   in
                accordance with Article 6 of Regulation ( EEC ) No 1224/ 80 .               Falling
                this , where 1n the case of an associated importer customs value cannot
                be determined in accordance with the above provisions , the net price ,
                f ree-at - frontier,    shall correspond to the customs value as determined
                in accordance with Article 2(3 ) of that Regulation .
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 ---pagebreak---                                         - 8 -
 <b> The provisions of subpararaph (a ) shall apply inter alia to motors
       originating 1n Yugoslavia imported by the companies named below :
 - Sever Agrovojvodlna / Copenhagen/
 - Sever Agrovojvodlna , Munich .
 ( S ) The provisions In force with regard to customs duties shall apply subject
 to the provisions of this Regulation .
                                      Article 2
 Amounts secured by way of the provisional anti-dumping duty imposed by
 Commission Regulation ( EEC) No 1043/ 87 shall be collected at the level of the
 definitive duties Imposed .
                                      Article 3
 The anti-dumping duties imposed or collected pursuant to Articles 1 and 2
 shall be collected on Imports into Spain and Portugal only in so far as the
 aggregate of the customs duty in force in the Member State concerned and the
 anti-dumping duty does not , for the product in question / exceed the aggregate
 of the Common Customs Tariff duty and the anti-dumping duty concerning the
 same product .
                                      Article 4
  This Regulation shall enter into force on the day following Its publication 1n
  the Official Journal of the European Communities .
  This Regulation shall be binding 1n Its entirety and directly applicable 1n
  all Member States .
  Done at Brussels /      July 1987 .                        For the Council .
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 ---pagebreak---                                                         Л№ЕХ
      Minimum prices (or imports into the Community o( certain standardized multi-phase electric
                                        motors originating in Yugoslavia
      The minimum import prices referred to in Article l (3) of this Regulation are shown in the following table,
      expressed in ECU.
      These prices apply to type B3 multi-phase electric motors (with retaining legs).
      For other types (e.g. type B 5 or B!4) a supplement of 7% must be added to the prices given below.
             kW                 hp           3 000 rpm         1 500 rpnt         1 000 rpm         750 rpm
              1.1  ·             1.5              40,3              41.7               57,9              89,1
               1.5               2                45.4              49,1               <8.3            105,0
              2,2                3                59,1              60,4               89,1            135.8
              3                  4                70,0             '72.3              108.3            ; 62,u
              4                  5,5              « 7,5             y 2,o             136,2            IVS.h
              5,5                7.5             113.3             117,0              177,4            241.2
              Λ5                10               143,7             150,8              204,5            299.S
             11                 15               194,1             200,3              295,7            403,2
             15                 20               244,9             261,6              3874             519,4
             18,5               25               314,0             319,0              475,2            6444
             22                 30               375,7             373,7              558.1            794 ,"
             30                 40               5014              495,6              739,3          1 023,5
             37                 50               627,2             614.8              911,3          1 244,1
             45                 80               704,7             7294             1 090,8          1 461.1
             55                 75               945.5             911,3            1 356.1          1 776.9
             75                100             1 261,5           1 207,0            l 799,7          2 287.4
21 'd
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