CELEX: 51980PC0027
Language: en
Date: 1980-01-25
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON CERTAIN SODIUM CARBONATE ORIGINATING IN THE SOVIET UNION (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 27
Vol. 1980/0013
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                         COM(80)27 final
                                         Brussels . 25th January 1980
                 PROPOSAL FOR A COUNCIL REGULATION ( EEC )
            IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON CERTAIN
             SODIUM CARBONATE ORIGINATING IN THE SOVIET UNION
               (presented by the Commission to the Council )
                                                           χ
 C0M(80 ) 27 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
  The Commission , by Regulation ( EEC ) N° 2599 / 79 of 24 November 1979 , imposed
  a provisional anti-dumping duty on light sodium carbonate originating in
  the Soviet Union .    This Regulation applies until th£ entry into force of
  an Act of the Council adopting definitive measures or , at the latest ,
  until the e:xpiry of a period of three months beginning on 24 November 1979 .
  A month before the expiry of this time limit the Commission , pursuant to
                                                (1)
  the anti-dumping Regulation ( EEC ) 3017 / 79     , shoyld submit to the
  Council a proposal relating to the adoption of definitive measures .
  Since the imposition of the duty , the Commission 's services have continued ,
 their examination Of the facts .       This subsequent examination has not
  revealed any elements which would warrant a change in the conclusions            1
  reached during the preliminary examination .
 The facts as finally established show that there is dumping and injury and
 that the amounts secured by way of provisional duty should be
 definitively collected .
  In these circumstances , the Commission submits thfe attached proposal for
  a Council Regulation imposing a definitive anti-dumping duty on light
sodium carbonate originating in the Soviet Union and providing for the
  definitive collection of the amounts secured by way of provisional duty .
 (1 ) 0J N° L 339 , 31 . 12.1979 , p. 1
 ---pagebreak---               COUNCIL REGULATION Q£EC )
 imposing a definitive anti-dumping duty on certain sodium carbonate
 originating in the Soviet Union
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 Having regard to Council Regulation ( EEC ) N° 3017 /79 of 31 December 1979 on
 protection against dumped or subsidized imports from countries which are not
                                                    (1)
 members of the European Economic Community             ,
 Having regard to the proposal submitted by the Commission after consultation
 within the Advisory Committee set up under Article 6 of Regulation 3017 / 79 ,
 Whereas in October 1978 the Commission received a complaint submitted by
 CEFIC , the European Council of Chemical Manufacturers Federations , on behalf
 of almost all Community producers of sodium carbonate , setting out evidence
 as to the existence of dumping of the like product originating in Bulgaria ,
 the German Democratic Republic , Poland, Romania , the Soviet Union ,
 Czechoslovakia and Albania , and of material injury resulting therefrom;
 Whereas , since there was sufficient evidence to justify initiating a proceeding
 the Commission published in the Official Journal of the European Communities
 a notice of initiation of an anti-dumping procedure concerning imports of
 sodium carbonate originating in Bulgaria, the German Democratic Republic , Poland
                                     (2)
 Romania and the Soviet Union            ; whereas exports from Albania and Czechoslovak !
 were found to be of minor importance and were , therefore , not included in the in
vestigation ; whereas the Commission advised the exporters and importers known
 to be concerned as well as the complainants and commenced the investigation
 at Community level ;                *
 ( 1 ) 0J N° L 339 , 31.12.1979, p. 1
 ( 2 ) 0J N° C 277 , 21 , 11 . 1978 , p. 4
 ---pagebreak--- Whereas , for the purposes of a preliminary determination of dumping and
injury , the Commission sought and verified all information it deemed necessary
 and conducted on the spot investigation at the offices of the exporters' agent :
 and imDorters , where deemed necessary , and in particular at those 'of
Arnold Suhr Belgique SA , Belgium ; Krahn-Chemie GmbH , Federal' Republic of
Germany ; Soprochim SA , France ; M Golodetz ( Overseas ) Ltd , TR International
( Chemicals ) Ltd , United Kingdom; SICEA SAS , SNIA Viscosa Spa , Tradeco SpA ,
                     /
Italy ; C van Epenhuysen 's Chemische Fabrieken BV , Menduga AG , the Netherlands ;
and of all Community producers involved ; whereas the Commission had contacts
with several other agents and importers ;^.                              . ■ ■
Whereas , when determining the existence of dumping on the above-mentioned .
imports , the Commission had to take account of the fact that Bulgaria , the .
German Democratic Republic , Poland , Romania and the Soviet Union are non-
market economy countries ;
Whereas , for this reason , the Commission based its preliminary dumping
calculations on the prices at which the like product is sold for consumption
on the domestic market of a market economy non-member country ;
Whereas a comparison with prices at - which - the like product is sold for
consumption on the domestic market of Austria -appeared to be appropriate
and not unreasonable , because , as in the exporting countries , there are raw
materials readily available , there are similar production processes based
on the manufacture of spdium carbonate by synthetic means , rather than by
natural means , and the're is production on a substantial scale ; whereas price
controls in Austria ensure that price levels stand in a reasonable proportion
to production costs ;
Whereas these calculations were made by comparing the Austrian weighted
average ex'-factory prices for 1978 with the weighted average export prices
to the Community of the countries under investigation for the same year ;
whereas due allowance was made for differences affecting price comparability
by_deducting from the Austrian - ex-factory prices the maximum discounts
granted on sales of the largest quantities , a special discount given on bulk
transport to the largest customers , sales and service costs supported by the
 ---pagebreak--- Austrian producer and the maximum discount granted for immediate payment ;
whereas export prices were available only on a fob or cif basis but no price
adjustments were made for transport costs included in such prices ; whereas
all aforementioned factors had the effect of reducing the difference between
                                          t
the Austrian ex-factory prices and the export prices ;
Whereas it emerged from the preliminary examination of the facts that dumping
existed for all imports investigated, the dumping margins for light sodium
carbonate exceeding 33% in all cases ;
Whereas , with regard to injury to the Community industry , the evidence
available to the Commission dt/ring the preliminary examination showed that
total imports into the Community of sodium carbonate originating in the
countries included in the investigation have risen from approximately
83 500 tonnes in 1974 to a level of 273 000 tonnes in 1978 and increased
further to approximately 151 206 tonnes during the first six months of 1979 ;
Whereas only a very minor part of these imports consisted of dense sodium
carbonate ; whereas the supply of dense sodium carbonate in the Community is
subject to strong contractual ties between the Community producers and their
main customers for dense sodium carbonate ; whereas some of these ties are
presently the subject of an investigation by the Commission as possibly
restraining competition on the dense sodium carbonate market ; whereas
recently built and planned production facilities for dense sodium carbonate
 in some of the exporting countries , notably in Poland and Bulgaria , did not
constitute a' threat of injury to the Community industry since it could not
be determined that there was a likelihood that such increased production
capicity would lead to a significant increase in exports to the Community
in the foreseeable future ; whereas , therefore , the preliminary examination
showed that no injury had been caused by the imports of dense sodium carbonate
Whereas the imports of light sodium carbonate originating in the countries
urider investigation represented a share of the total light sodium carbonate
market in the Community of 19.7% and in France , Belgium , Italy , the
Netherlands and the Federal Republic of Germany of 11.0% , 23.6% , 25.8% , 28.7%
 ---pagebreak---                                     -   L   -
  and 34.8% respectively ; of these / imports from the Soviet Union represented
" 2.7% of the total Community market and in the main country of importation /
  Italy, 13.6% of the market ;
  Whereas the prices of these imports on the Community markets were extremely
  low and undercut the prices of the like product in the Community by signi­
  ficant amounts / particularly during the second and third quarters of 1978 ;
  whereas these prices increased only slightly afterwards ;                      '   ,
  Whereas the consequent impact on the Community industry consisted of a loss
  of sales to small customers of light sodium carbonate in bags in all Member
  States , a loss of bulk customers in some Member States and a depressive
  effect on the Community producers * prices for light sodium carbonate in
  bags and in bulk ; whereas , as a result / market shares , particularly in the
  market for bagged light sodium carbonate / were reduced and returns have
  decreased to levels where further investments could not economically be
  envisaged;
                                          V                       _                    X
Whereas the other factors which were known to be adversely affecting the
  Community producers of light sodium carbonate / such as * the volume and price
 of other imports / stagnation in demand and the substitution / in some
  applications / by other products / were considered and were found to be of
  minor importance ;          /       •
  Whereas the dumped imports were / therefore , considered to be demonstrably
  the principal cause of the difficulties described above ;
  Whereas / since this preliminary examination of the matter showed that there
  was dumping , that there was sufficient evidence of injury and that the
  interests of the Community called for immediate intervention , the Commission
                                      (1)
  by Regulation ( EEC ) N° 2599 / 79        , imposed a provisional anti-dumping duty
  on light sodium carbonate originating in the Soviet Union ;
                                 i
                                . T
   ( 1 ) OJ N° L 297 , 24.11.1979 , p. 12
 ---pagebreak---                                     - 5 -
    Whereas , in the course of the subsequent investigation of the matter ,
    completed after the imposition of the provisional anti-dumping duty , the
    interested parties had the opportunity to make known their views in writing ,
    to be heard by the Commission , to inspect non-confidential information
               '      '                   ' '             »                                  •
    relevant to the defence of their interests , and to request to be informed
    about the essential facts and considerations on the basis of which it was
    intended to make a final determination ; whereas only the Community
    industry made use of these opportunities by submitting its views in writing
    and by requesting a meeting which took place in December 1979 ;
>   Whereas no additional information has been received from the interested
    parties concerned and no further arguments have been advanced ;
                                     i
    Whereas the subsequent examination has not revealed any elements which would
    warrant a change in the conclusions reached during the preliminary examination
    of the matter ;
    Whereas   under these circumstances the calculations and determinations with
                                  '    .                                        I
    respect to dumping and injury remain      unchanged;
    Whereas the protection of the Community 's interests calls for the definitive
    collection of the amounts secured by way of provisional duty in respect of
     light sodium carbonate and for the imposition of a definitive anti-dumping
  . duty ; whereas the amount of this duty should correspond to the amount of
    the provisional duty ;
    Whereas , however , the collection of this duty ,on the basis of the f ree- at - f rontier
    price of the importing Member £tate has created technical - difficulties , so that it
    appears appropriate to base it in the future on a free Community frontier
    price ; whereas this will have no significant consequences with respect to
    the amount of the duty to be collected;
    Whereas , in order to avoid evasion of the anti-dumping duty, it is necessary
    to provide for an alternative procedure for the calculation of the duty for
    cases where the product is not entered for consumption by the first
                                            /
    purchaser in the Community ;                    '
 ---pagebreak---                                  - 6 -
Whereas   the undertakings given by the export organizations in Bulgaria , the
German Democratic Republic , Poland and Romania satisfy the Commission that
the introduction of protective measures with respect to products originating
in these countries remains unnecessary at present ;
Whereas the Soviet          export organization has not offered such an
undertaking ;
Whereas , under these circumstances , it is appropriate to exclude the export­
ing countries from which voluntary undertakings were received from the
application of the duty and to ensure' its application against exports from ,
the Soviet Union, in order both to neutralize the injury caused by those         -
exports and to ascertain that the stabilization of the market sought by the
acceptance of these undertakings is not undermined by further dumped imports          .
from the Soviet Union , to the disadvantage of the Community producers and
the exporters who offered such undertakings ,
HAS ADOPTED THIS REGULATION :-
                                 Arti ele 1
1.   A definitive anti-dumping duty is hereby imposed on light sodium carbonate
falling within Common Customs Tariff subheading 28.42 A II            corresponding
to NIMEXE code 28.42-31 and originating in the Soviet Union .
2.   Without prejudice to the provisions of paragraph 4 below , the amount of
the duty shall be equal to the amount by which the price , free Community
frontier , before duty , per tonne     net ,  to the first purchaser in the
customs territory of the Community , is less than US3105.10 .
3.   The price of USS105 . 10 as mentioned in paragrah 2 shall be net if the conditions of
sale provide for payment within 30 days from the end of the month of delivery ;
it shall be increased or reduced by 1% for each increase or decrease of one
month, in the time for payment .                                                    s
 ---pagebreak--- 4 . a ) Where the product is not entered for consumption by the first purchaser
         in the Community , the definitive anti-dumping duty shall be 33% of     '
         the value declared in accordance with Regulation ( EEC ) No 375 / 69 on
         the declaration of particulars relating to the value of goods for
                           (1)         -
         customs purposes      .                          .
     b ) Where , however , the    declarant     can provide satisfactory proof to
         the customs authorities that the price paid by the first purchaser
         i)    exceeds or is equdl to US8105.10 , no duty shall be applied , or
                                                                         î
         ii )  is lower than USS105.10 by less than 33% of the value declared ,
               the duty shall be equal to the amount by which the said price
               is lower than US2105.10 .
5.     For the purposes of this Regulation , light sodium carbonate shall be all
non-compacted sodium carbonate with a specific weight cff less than 0,700 kg / dm
and consisting of powder or grains smaller than 0.4 mm in diameter .
6.     The provisions in force for the application of customs duties shall apply
to this duty .
                                      Article 2
The amounts secured by way of provisional duty pursuant to Regulation ( EEC )
N° 2599 / 79 shall be definitively collected .
                                      Article 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 all Member States .           ' si
Done at Brussels ,                                   For the Council
                 \
                                                     The President
   Ν
( 1 ) 0J N° L 52 of 1.3.1969 , p. 1