CELEX: 51990PC0300
Language: en
Date: 1990-06-28
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON IMPORTS OF SILICON METAL ORIGINATING IN THE PEOPLE' S REPUBLIC OF CHINA

COMMISSION OF THE EUROPEAN COMMUNITIES
                                    C0M(90) 300 final
                                    Brussels, 28 June 1990
                         Proposal for a
                    COUNCIL REGULATION (EEC)
        Imposing a definitive antidumping duty on Imports of
                  silicon metal originating In the
                     People's Republic of China
                  (presented by the Commission)
 ---pagebreak---                                   Proposal for a
                             COUNCIL REGULATION (EEC)
            imposing a definitive antidumping duty on imports of
                       silicon metal originating in the
                           PeopIe's Republie of ChIna
The Council of the European Communities
Having regard to tfee Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 19881>
on protection    against   dumped or subsidized   imports   from countries not
members  of   the  European   Economic  Community   and  in particular      Art.12
thereof,
Having   regard   to   the   proposal  submitted   by   the   Commission     after
consultation   within   the Advisory   Committee  as provided    for    under  the
abovementloned Regulation,
WHEREAS
A.  Provisional Measures
(1) The   Commission,     by   Regulation   (EEC)   No   720/90 2 )    imposed   a
    provisional    antidumping    duty  on  imports   into   the    Community   of
    silicon-metal falling within CN Code 2804 6900 and originating in the
    People's Republic of China.
1) O.J. N" L 209/88, 2.8.1988
2) O.J. N- L 80/90 Of 27.3.1990
 ---pagebreak---                                         - 2
B.  Subsequent Procedure
(2) Following   the   imposition    of  the provisional     antidumping     duty,   the
    representatives of the complainants as well as representatives of the
    British   and German user      industry   and one of    the British      importers
    requested    and  were    granted    an  opportunity     to   be   heard   by   the
    Commission.    They   also made written submissions making            known   their
    views on the provisional findings.
c. Pump Ing
(3) For the purpose of definitive findings          normal value was established
    on  the basis of     the same method      as that   used   for   the provisional
    determination of dumping.        This method has been criticized by one of
    the   importers   as   not   being    justified,  given     the   fact   that   the
    production conditions      in the Community and the People's Republic of
    China are not comparable. However,         in the case of      imports from non-
    market economy    countries, Art. 2(5) of Regulation            (EEC) N*   2423/88
    provides that normal value shall be based          in an appropriate and not
    unreasonable manner, whenever         possible, on    the basis of      prices or
    costs of manufacturers       In a market economy      third country. For this
    purpose    the   Commission     contacted    producers      In   four    different
    countries, as described In recital 10 of Regulation (EEC) 720/90.
(4) The Council confirms that       in the absence of satisfactory cooperation
    from these companies, there is no other possibility but to establish
    normal value on the basis of the price payable            in the Community for
    the like product, duly adjusted to include a reasonable profit margin
    in  accordance    with   Article     2(5)(c)  of   Regulation      (EEC)   2423/88
    However adjustments have been made when comparing normal                value and
    export price as set out       under recitals 5 and 6 be low.
 ---pagebreak---                                          - 3 -
    Export Price
(5) Since the Comission had no other findings the export prices have been
    definitively established in accordance with Art.7(7)(b) of Regulation
    (EEC) No 2423/88 on the basis of the information available, I.e. the
    import prices published by Eurostat.
(6) The Commission     found that this      information was very similar      to the
    information supplied by the exporters which had given partial replies
    to the Commission's questionnaire.
(7) The Council     confirms the Commission's       findings and conclusions set
    out in recitals 11 and 12 of Commission Regulation (EEC) No 720/90.
E.  Comparison
(8) One of the     importers and a major part of the user          industry alleged
    that the Commission,      in comparing normal value, had not sufficiently
    taken   into account     the differences     affecting   the  comparability    of
    prices and    In particular differences In the physical characteristics
    of  the products     and   in the costs of      transport   from  China   to the
    Commun i t y.
(9) However,    the   Commission,     in  comparing   normal   value    with   export
    prices, had adjusted the export price by the costs              incurred by the
    importer as a result of checks on differences in volume and quality.
    Allowance was also made         for differences     in packaging    and  for  the
    transports    costs   from   China   to  the  the Community     (recital   13 of
    Regulation (EEC) 720/90);
    The Council confirms the Commission's conclusions.
 ---pagebreak---                                         - 4-
F.   Dumping margins
(10)     The  Commission     found   the   existence    of   dumping,    the   weighted
         average dumping margin expressed as a percentage of the total cif
         value of    imports of the product concerned for the            Investigation
         period being 38,73%.
         The Council     confirms   the findings      In recital   16 of     Regulation
         (EEC) 720/90.
G.   Inlurv
(11)     The Commission concluded,        in its provisional     findings, that the
         Community     producers   of   silicon    metal    had   suffered     material
         injury.    It   based   these   findings    principally     on   the   Chinese
         exporters' rapid increase in the voiume of exports and In market
         share, the price undercutting practised by these exporters in the
         Community    market   and  the fact    that   the Community      Industry, by
         offering   silicon    metal   at   prices   competitive    with    the  dumped
         imports, had to sell their material at prices equal               to or below
         cost of production.
(12)     The  Community     producers   submitted     evidence   to   the    Commission
         showing that, since the beginning of 1989, the export prices of
         the   Chinese     producers/exporters       had    further     decreased    by
         approximately 10%. However, it is considered inappropriate in the
         present   case,    in  conformity    with    standard   practice,     to  take
         account  of    facts which    have occurred      after   the    investigation
         period.
 ---pagebreak---                                        - 5-
(13)    The user    Industry and one of the importers maintained                that the
        data  presented     in Regulation      (EEC) No 720/90       showed    only   the
        existence    of   a   normal,    competitive     situation      and    that   the
        negative evolution of the Community           industry was simply due to a
        lack  of   cost   efficiency.     However,    these    allegations     were   not
        supported by any evidence. The Council confirms the findings of
        the Commission     as set out      in recitals     18 to    27 of     Regulation
        (EEC) No 720/90.
H.  Causation of injury
(14)    In   recitals    28   to   31   of    Regulation     (EEC)    No    720/90    the
        Commission found that the growth          in imports from China coincided
        with the    loss of market share by the Community             producers and a
        loss of prof i tabiIi ty.
(15)    One  of   the   importers   challenged      the  causal    link   between     the
        imports of the Chinese material          and the     injury suffered by the
        Community    industry   by   alleging    that   cheap    imports     from   other
        third    countries     had    taken     place     during     the    period     of
        invest igat ion.
(16)    This  argument    has   already    been   raised    during    the   preliminary
        investigation. The Commission          has dealt    with    this question      in
        recital 30 of Regulation (EEC) 720/90 and stresses once more that
        prices    for    imports    from     other    non-member      countries      were
        remarkably higher than the prices for the Chinese material during
        the period    of investigation.
(17)    The Council confirms the Commission's findings and conclusions in
        recitals 28 to 31 of Regulation            (EEC) 720/90 that       the    imports
        under   consideration     taken     in  isolation     have   caused     material
        injury.
 ---pagebreak---                                           - 6 -
I .  Community    Interest
(18)    Part of the user        industry of the       imported product      claimed that
         the   Commission     had  not     sufficiently     taken     Into   account     the
         interests of the user industry to have the possibility of buying
         low    priced    material     from     outside    the    EEC.     The    industry
         representatives      further    claimed,    that   where   a    definitive    duty
        would be imposed, the final product of their major clients, the
        automobile       industry    would      experience     a    substantial       price
         increase.
(19)    However the possible        impact of the definitive duty on the costs
        of the finished products, In which siliconmetal                 is included, was
        acknowledged by the user         industry to be below 1%. The Commission
        therefore considers, as already stated              in recitals 33 and 34 of
        Regulation (EEC) 720/90, that the Community's                interest that fair
        competition     be    reestablished      on  the   Community      markt   and    the
        Community     producers'    interest     in the continuation of         their own
        production     and   in fair    prices outweighed       the    interests of     the
        user industry to take advantage of the unfair practices.
(20)     in  addition     it  was  alleged      that,   after   the    imposition     of   a
        definitive duty,       imports from other       third countries would          take
        over    the   market    share    of   the   Chinese    material      rather    than
        removing the injury suffered by the Community              industry.
(21)    As regards the possible replacement of Chinese imports by imports
        from other third countries the Commission considers that                   imports
        at   fair prices from other         third countries are not          against    the
         Interest of     the Community      and   therefore cannot       be an   argument
        against measures to be taken against            imports of dumped products.
(22)    The Council confirms these conclusions
 ---pagebreak---                                           - 7 -
J.  Puty
(23)     Provisional measures took the form of an ad valorem antidumping
         duty, the amount of which was calculated at a level which would
         increase    the   prices of     the   Imported    product  to a    theoretical
         selling price allowing the Community           industry to realise a profit
         margin  of    6,5%,   which   was    considered    to be   a minimum     profit
         margin  in order     to guaranty      a producer     a reasonable    return on
         investment.
(24)     In order to remedy the continuous price decrease of the Chinese
         Imports, the Commission considers it more appropriate to impose a
         definitive     antidumping     duty    in  the   form   of  a  specific    duty
         instead    of   an   ad  valorem      duty.    In   taking   account   of   the
         considerations given       in recitals 36 and 37 of Regulation            (EEC)
         720/90   it is considered       that   the amount of the definitive duty
         should  be calculated       on   the basis of      the provisional     duty of
         18,7% on the weighted average CIF price             of the Chinese material
         during the investigation period and amounts to 198 ECU per tonne.
         The Council confirms this conclusion.
K.  Collection of provisional duties
(25)     In view of the dumping margins established and the seriousness of
         the   injury     caused   to    the    Community     industry,   the   Council
         considers     it   necessary      that    amounts    collected    by   way   of
         provisional    antidumping duties should be definitively collected
         to the extent of the amount of the duty definitively imposed.
 ---pagebreak---                                     - 8 -
HAS ADOPTED THIS REGULATION:
                                  Article 1
1.   A definitive antidumping duty is hereby imposed on imports of silicon
     metal  falling within CN Code 2804 6900 originating      in the People's
     Republic of China.
2.   The duty shall be 198 ECU/tonne of the Imported product.
3.   The provisions in force concerning customs duties shall apply.
                                  Article 2
The amounts collected or secured by way of provisional       antidumping duty
under Regulation (EEC) No 720/90 shall be collected at the rates of      duty
definitively   imposed where the definitive rate of duty is lower than the
provisional antidumping duty and at the rates of provisional duty in all
other cases. Secured amounts which are not covered by the rates of duty
definitively imposed shall be released.
                                  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 CounclI
                                         The President
 ---pagebreak---  ---pagebreak---                                                                                 ISSN 0254-1475
                                                                 COM(90) 300 final
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