CELEX: 51988PC0522
Language: en
Date: 1988-09-26
Title: Proposal for a COUNCIL REGULATION (EEC) extending the anti-dumping duty imposed by Regulation (EEC) No 535/87 to certain plain paper photocopiers assembled in the Community (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 522
Vol. 1988/0184
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
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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
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Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM(88 ) 522 final
                                          Brussels , 26 September 1988
                                Proposal for a
                           COUNCIL REGULATION ( EEC )
      extending the anti-dumping duty imposed by Regulation ( EEC )
             No 535 / 87 to certain plain paper photocopiers
                          assembled in the Community
                        ( presented by the Commission )
 ---pagebreak---                                                                    Çlt
                              EXPLANATORY MEMORANDUM
 In January 1988 the Commission received a complaint from CECOM , the
Committee of European Copier Manufacturers , on behalf of Community
producers of plain paper photocopiers (PPCs ) alleging that a number of
companies were assembling PPCs         in the Community under   the conditions
referred to In Article 13(10 ) of Regulation ( EEC ) No 2423/881 and were
accordingly circumventing the anti-dumping duty Imposed on PPCs originating
 in Japan . An Investigation was opened by publishing a notice in the
Official Journal of the European Communities 2 .
The assembly operations concerned were carried out by the            following
compan ies :
- Canon Bretagne SA ( France )
- Canon Giessen GmbH ( Germany )
- Firma Develop Dr Elsbein GmbH ( Germany )
- Konica Business Machines Manufacturing GmbH ( Germany )
- Matsushita Business Machine ( Europe ) GmbH ( Germany )
- 0I ivett I -Canon Industriale SpA ( Italy )
- Ricoh ( UK ) Products Ltd ( United Kingdom )
- Sharp Electronics ( UK ) Ltd ( United Kingdom )
- Toshiba Systems SA ( France )
All   are wholly owned subsidiaries of        Japanese PPC exporters with  the
exception of Develop ,     In which Minolta has a controlling Interest , and
0I Ivett l-Canon,' which is a 50:50 Joint venture between Olivetti and Canon .
The Commission established that Sharp Electronics ( UK ) Ltd only commenced
production of PPCs after the reference period ( March 1987 to January 1988 ).
1      0J No L 209 , 02.08.1988 , p . 1 .
2      OJ No C 44 , 17.02.1988 , p . 3 .
 ---pagebreak--- Canon Giessen GmbH ( 46.2% ) and 01 l vet t l -Canon Industrlale SpA ( 66.5% ) were
found to have reached the required threshold of 40% of non-Japanese parts
in value and accordingly no measures are proposed for these companies .
The   weighted     average   value   of  Japanese    parts  used    In   the   assembly
operations of the remaining companies were found to be as follows : Canon
Bretagne 63% ; Develop 93.7% ; Konlca 94.2% ; Matsushita 98.4% ; Ricoh 87.4%
and Toshiba 70.0% .
Three   of   these   companies ,   Canon  Bretagne ,  Develop   and   Ricoh   have    now
reached    the    required    level   of  non-Japanese    parts   and   have    offered
undertakings to maintain or         Increase these levels     In the future .       These
undertakings are considered acceptable and accordingly a duty should not be
extended to models assembled by these companies .
For the remaining companies , Konlca , Matsushita and Toshiba , It Is proposed
that the anti-dumping duty applicable to exports to the Community by their
respective     parent   companies    be  extended    to  models   assembled      In   the
Community .    The level of duty proposed Is a fixed amount per machine and
amounts    to   225 ECU  for   Konlca ,  192 ECU  for   Matsushita    and   28 ECU    for
Toshiba .
 ---pagebreak---                                Proposal for a
                          COUNCIL REGULATION ( EEC )
          extending the anti-dumping duty Imposed by Regulation ( EEC ) No 535/87
          to certain plain paper photocopiers assembled in the Community
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establ ishlng 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
  members of the European Economic Community 1 , and in particular Article
  .13(10 ) thereof .
  Having regard to the proposal submitted by the Commission after
  consultations within the Advisory Committee as provided for under the
  above Regulation ,
  Whereas :
  A.   PROCEDURE
  1.    In January 1988 , the Commission received a complaint lodged by CECOM ,
                                                                                                     !
  the Committee of European Copier Manufacturers , on behalf of producers of                         |
  plain paper photocopiers (PPCs) whose collective output constitutes a                               |
  major proportion of Community production of the product In question . The                            \
  complaint contained sufficient evidence of the fact that , following the                              l
                                                                                2
  opening of the investigation concerning PPCs originating in Japan' ,                                    1
  which led to the adoption of Regulation ( EEC) No 535/87^ imposing a
  definitive anti-dumping duty on Imports of those products , a number of
  companies were assembling PPCs In the Community under the conditions
  referred to In Article 13(10 ) of Regulation ( EEC ) No 2176/84, since replaced
  by Regulation(EEC ) No 2423 / 88 . Accordingly, after consultation, the Commission announced, by notice
      L)J No L 209, 2.08.1988, p. 1 .
      3)J No C 194 , 02.08.1985 , p .   5.
      30J No L 54 , 24.02.1987 , p . 12 .
V                                                                                                   k
 ---pagebreak---                                                                   4
published In the Official Journal of the European Communities , the
Initiation of an Investigation , under the said Article 13(10 ), concerning
PPCs assembled In the Community by companies related to or associated
with the following Japanese manufacturers whose exports of PPCs are
subject to a definitive anti - dumping duty :
- Canon Inc
- Konlshlroku Photo Industry Co
- Matsushita Electric Co Ltd
- Minolta Caméra Co Ltd
- Ricoh Company Ltd
- Sharp Corporation
- Toshiba Corporation
2.   The Commission so advised the companies concerned , the
representatives of Japan and the complainants , and gave the parties
directly concerned the opportunity to make known their views In writing
and to request a hearing .
3.   All the companies concerned and the complainants made their views
known In writing and requested and were granted hearings by the
Comm I ss I on .
4.   No submissions were made by purchasers of PPCs assembled in the
Community .      The Commission sought and verified all information It deemed
necessary for the purpose of the assessment of the character of the
alleged assembly operations and carried out Investigations at the
premises of the following companies :
- Canon Bretagne SA ( France )
- Canon Giessen GmbH ( Germany )
- Firma Develop Dr Eisbeln GmbH ( Germany )
- Konica Business Machines Manufacturing GmbH ( Germany )
- Matsushita Business Machine ( Europe ) GmbH ( Germany )
- 0I ivett I -Canon Industriale SpA ( Italy )
- Ricoh ( UK ) Products Ltd ( United Kingdom )
- Sharp Electronics ( UK ) Ltd ( United Kingdom )
- Toshiba Systems ( France ) SA
'4  0J No C       44 , 17.02.1988 , p. 3.
 ---pagebreak--- 5 . Furthermore , the Commission carried out an Investigation at the
premises of a supplier of components to some of the companies Involved .
This supplier of components Is a subsidiary of one of the Japanese
exporters concerned .
6.   The period of investigation was from 1 April 1987 to 31 January 1988 .
7 . Following Investigation , the Commission established that Sharp
Electronics ( UK ) Ltd had not assembled or produced PPCs In the Community
prior to or during the Investigation period but had commenced assembly
following the opening of the present investigation In February 1988 .
8 . The Commission was , In addition , aware that one of the complainant
companies , Rank Xerox Ltd , had , prior to and during the original
investigation , assembled or produced certain PPCs In the Community using
a significant proportion of parts and materials supplied by Fuji Xerox , a
related company on whose exports of PPCs the definitive anti-dumping duty
was Imposed . Following a visit to Rank Xerox' premises at Mltcheldean ,
UK , where these assembly or production operations took place , the
Commission established that these operations were not substantially
increased after the opening of the anti-dumping investigation .       In 1985 ,
when the original anti-dumping Investigation was opened , the number of
relevant models assembled by Rank Xerox In the Community was lower than
in the two previous years .   By 1987 , the total number of PPCs assembled
or produced at Mltcheldean In this period , l.e . since 1983 , has Increased
by only 4% .
B.   RELATIONSHIP OR ASSOCIATION WITH EXPORTER
9 . Most of the companies referred to In recital 4 were found to be
wholly- owned subsidiaries of Japanese exporters of PPCs which were
subject to the definitive anti-dumping duty Imposed by Regulation ( EEC )
No 535/87 . The exceptions are Ol I vett I -Canon SpA , in which Olivetti has
a 50% plus one shareholding and Canon the remainder , a Joint venture
between Canon Inc . and Ing . Olivetti SpA , and Firma Develop Dr Elsbeln
GmbH & Co In which Minolta Camera Co Ltd has a majority shareholding .
 ---pagebreak--- Consequently , all firms concerned were considered to be related to a
manufacturer whose exports of the like product are subject to a
definitive ant I -dumping duty .
C.   PRODUCTION
10 .  Most of the companies referred to In recital 4 commenced their
assembly operations after the Initiation , on 2 August 1985 , of the anti ¬
dumping proceeding concerning Imports of PPCs originating in Japan .
However , while both Olivetti and Develop had assembled or produced PPCs
independently prior to the Initiation of the anti-dumping proceeding , the
relationship with the exporters concerned was created after the
initiation of the original anti-dumping Investigation .    Prior to that
date , no relationship or association of other than a purely commercial
nature existed between either Olivetti or Develop with any Japanese
exporter of PPCs and , accordingly , Article 13(10 ) of Regulation ( EEC )
No 2176 / 84 could not apply at that time to these companies .
Following the creation of the 0I ivett l-Canon Joint venture the models
produced by this company have remained essentially those previously
developed and produced by Olivetti .   The numbers produced , however , have
Increased substantially .
As regards Develop , following Minolta 's acquisition of a controlling
Interest In the company , assembly or production of certain models ,
previously produced by Minolta In Japan and exported to the Community ,
commenced In addition to the continued production of models previously
developed and produced by Develop .   In 1986 , when assembly of the Minolta
models began , the total units produced Increased from the previous year
by approximately 74% and by a further 38% In 1987 over the 1986 figure .
The " Minolta " models comprised 48% and 65% respectively of the total
units produced or assembled by Develop In 1986 and 1987 . Thus , the
assertion , made by Develop that no substantial Increase in the quantities
assembled had occurred since that date was therefore not considered
correct .
 ---pagebreak--- Most models produced by 01 I vett 1-Canon during the reference period were
those for which the research , development and production were carried out
by Olivetti prior to the Joint venture with Canon . The models for which
production began subsequent to the creation of the joint venture were
merely developed from previous models and contained many Identical parts
to the earlier models .    Accordingly , these new models had the same high
 level ( well above 40% ) of non-Japanese parts In value as the earlier
models .
Similarly , Develop continued to produce , following the takeover by
Minolta , two models and a development thereof which were the result of
research , development and production both before and after the takeover .
These models had a high level ( well above 60% ) of non-Japanese parts In
value .   Accordingly , It Is considered Inappropriate to extend the anti ¬
dumping duty to these models .    However , the models previously exported by
Minolta from Japan and assembled by Develop following the takeover had a
high content ( well above 60% ) of parts of Japanese origin .
11 .  Only Canon was found to have established assembly or production
operations for PPCs In the Community prior to the opening of the anti ¬
dumping Investigation and for both these operations , Canon Giessen and
Canon Bretagne , It was claimed that no substantial Increase In quantities
assembled had occurred since the date of the Initiation .       It was ,
however , established that , at both operations , volumes of models
assembled Increased by approximately 30% In the year following the
opening of the original Investigation .     Canon argued that this percentage
 Increase was In line with those of previous years .     In fact , the
percentage Increases had varied considerably and a 30% Increase from a
 large base is greater , In absolute terms , than from a smaller base . In
addition , at Giessen , where operations began In 1973 , the 30% Increase
followed a period of relative stability In production during which , from
1981 to 1985 inclusive , the number of units produced over the whole five
year period Increased by only 4.6% . Thus , It was concluded that , on
balance , it would not be reasonable to consider the respective Increases
 ---pagebreak--- at the Canon operations at Giessen and Bretagne as constituting less than
substantial Increases in terms of Article 13(10)(a ) of Regulation ( EEC )
No 2176 / 84 .
D.   PARTS
12 .  The value of the parts In question was generally determined on the
basis of the companies' purchase prices of these parts when delivered to
the factories in the Community .    The relevant value Is that of the parts
and materials as they are used In the assembly operations , that Is on an
Into-factory basis .
13 .  Several companies concerned claimed that certain subassembled items
were of Community origin and that , In addition , they should be treated as
parts within the meaning of Article 13(10 ) of Regulation ( EEC )
No 2176/ 84 .  It was found , however , that these Items were merely
assembled In the Community , mainly from parts imported from Japan , by
Independent suppliers .   On the basis of Information obtained from the
companies making the claim , it was concluded that this assembly did not
constitute a substantial process or operation as required by Article 5 of
Regulation ( EEC) No 802/68 5. The simple assembly operation carried out
In the Community was of a basic and unsubstantial nature and was not
sufficient to confer Community origin .
A number of companies requested that the assembly costs of certain
subassemblies , Incurred In their own factory , should be included in the
value of Community parts . This request , however , cannot be granted
because the cost of assembly cannot be Included In the value of parts or
materials used In the assembly or production operations under
Article 13(10 ) of Regulation ( EEC ) No 2176/ 84 .
5    0J No L 148 , 28.06.1968 , p.  1.
 ---pagebreak--- 14 .   It was also requested by several companies that the costs of
production of certain Items Incurred by them In the Community be Included
In the value of Community parts . Where such Items constituted parts or
materials within the meaning of Article 13(10)(a ) of Regulation ( EEC )
No 2176/84 and where such parts had acquired Community origin in
conformity with Regulation ( EEC ) No 802 /68 the Inclusion of such costs in
the value of non-Japanese parts was considered appropriate .
Canon
15 .   At the three operations concerned , Canon Giessen , Canon Bretagne and
0I I vett i-Canon , different models are assembled or produced . The value of
Japanese parts used by Canon varied considerably according to model , the
weighted average value of Japanese parts for all models assembled at
Canon Giessen being 53.8% and Canon Bretagne 63.0% and Canon-0 1 1 vett I
33.5% .
Accordingly , the anti-dumping duty cannot be extended to those PPCs
assembled In the Community by Canon Giessen and Ol I vett I -Canon .
Develop
16 . The weighted average value of Japanese parts for all models produced
by Firma Develop Dr Eisbein was found to be 93.7% .
Kon I ca
17 . The weighted average value of Japanese parts for all models produced
by Konlca Business Machines Manufacturing was found to be 99.2% .
Matsush I ta
18 . The weighted average value of Japanese parts for all models produced
by Matsushita Business Machine ( Europe ) was found to be 98.4% .
Ricoh
 19 . The weighted average value of Japanese parts for all models produced
by Ricoh ( UK ) Products was found to be 87.4% .
                                                                              >
 ---pagebreak--- Toshiba
20 .  The weighted average value of Japanese parts for all models produced
by Toshiba Systems ( France ) was found to be 70.0% .
E.   OTHER  CIRCUMSTANCES
21 .  Consideration was given to other relevant circumstances with regard
to the assembly operations referred to above , In accordance with
Article 13(10 ) ( a ) of Regulation ( EEC ) No 2176/ 84 .
22 .  In most cases It was found that the nature of the parts sourced in
the Community was relatively simple and that they were of low value .
Many parts of a higher technological value were Imported from Japan and ,
at least In the initial stages of the assembly operations In the
Community , few genuine attempts appear to have been made to substantially
change the sourcing pattern . Indeed , It was found that more than one
company began operations In the Community and continued for some time
with 100% of Japanese value of parts incorporated in the assembled PPC .
23 .  Some companies claimed that it was not or not yet possible for them
to find sources of supply In the Community which guarantee a required
level of quality .     This assertion , however , appears to confuse the
distinct Issues of quality and technical specifications since Community
producers of PPCs of comparable quality to those of the companies
concerned source their parts In the Community and have proved that It is
not Indispensable to use parts predominantly of Japanese origin .        It has
also been noted In previous cases that sourcing policy can be changed
with considerable practical effect within a very short time frame .
 ---pagebreak--- 24 . As to direct labour , It was found that a certain number of new Jobs
had been created by the companies concerned . However , the companies
 Investigated only carry out assembly operations whereas the Community
producers normally have an integrated , In-depth production which requires
more personnel . Since the Increased sales of assembled PPCs result In
decreased sales by the Community producers , it can only be concluded that
the functioning of the assembling companies is likely to result In a net
 loss of employment in the Community .
25 . Furthermore , as regards research and development , It was found that
R&D was carried out In the Community only by the two companies , Develop
and Olivetti , which had had an Integrated PPC production operation prior
to the creating of a corporate relationship with a Japanese exporter .
26 . Some companies claimed to have transferred technology to the
Comunlty by setting up assembly operations . The amount of technology
transferred was , however , minimal and related merely to assembly .
F.   CONCLUSIONS
27 .  In view of the foregoing , it is concluded that the anti-dumping duty
should be extended to certain PPCs assembled in the Community .   The
amount of the duty to be collected , which takes the form of a flat-rate
duty for each company , was calculated In a manner to ensure that It
corresponds to the percentage rate of the anti-dumping duty , applicable
to the exporters In question , on the CIF value of the parts or materials
from Japan as established for the investigation period .
G.   UNDERTAK I NGS
28 .  The companies against which protective measures are considered
necessary have been Informed of the essential facts and considerations on
the basis of which the present measures have been proposed .   Certain of
these companies offered undertakings referring , In particular , to the
attainment of a certain proportion of parts originating In the Community .
The undertakings offered by Canon Bretagne , Develop and Ricoh are
considered acceptable by the Commission which is publishing a Decision to
that effect . The anti-dumping duty should accordingly not be extended to
PPCs assembled in the Community by these companies . The Community will
 ---pagebreak--- examine         the        acceptability of any further undertakings offered
 and      proceed to the necessary verification as soon as It has been
 Informed by the companies concerned that the conditions Justifying the
 present extension of the anti-dumping duty to assembled products have
 been removed .   Satisfactory guarantees should also be given that these
 conditions would not recur In the future ,
 HAS ADOPTED THIS REGULATION :
                                    Article 1
 1.  The definitive anti-dumping duty Imposed by Regulation ( EEC )
 No 535 / 87 on Imports of plain paper photocopiers        Incorporating an
 optical system , originating In Japan , Is hereby also imposed on plain
 paper photocopiers     Incorporating an optical system , corresponding to
 Combined Nomenclature codes ex 9009 11 00 , ex 9009 12 00 and ex
 9009 21 00 , introduced into the commerce of the Community after having
 been assembled or produced In the Community by :
 - Konlca Business Machines Manufacturing GmbH , Luneburg
 - Matsushita Business Machlne ( Europe ) GmbH , Neumünster
 - Toshiba Systems ( France ) SA , Arques - la -Batal I le
 2.  The rate of duty shall be as set out below per unit assembled by the
 companies concerned :
                                                                     ECU
 - Konica Business Machines Manufacturing GmbH                       225
 - Matsushita Business Machine ( Europe ) GmbH                       192
 - Toshiba Systems ( France ) SA                                      28
                                    Art icle 2
 1.  Parts and materials suitable for use In the assembly or production of
 plain paper photocopiers by the companies referred to In Article 1(1 ) and
 originating In Japan can only be considered to be in free circulation
 Insofar as they will not be used in the assembly or production operations
 referred to above .
 ---pagebreak--- 2.  Plain paper photocopiers thus assembled or produced shall be declared
to the competent authorities before leaving the assembly or production
plant for their Introduction into the commerce of the Community .   For the
purpose of levying an anti-dumping duty , this declaration shall be
considered to be equivalent to the declaration referred to in Article 2
of Council Directive 79/ 695 / EEC^.
3.  The provisions In force concerning customs duties shall apply .
                                   Art Icle 3
This Regulation shall enter Into force on the day of its publication in
the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
In a 1 1 Member States .
Done at                                              For the Councl I ,
  6 OJ No L 205 , 13.08.1979 , p. 19 .