CELEX: 51998PC0056
Language: en
Date: 1998-02-04
Title: Proposal for a Council Regulation (EC) imposing a definitive anti-dumping duty on imports of glyphosate originating in the People's Republic of China and collecting definitively the provisional duty imposed

COMMISSION OF THE EUROPEAN COMMUNITIES
                                          Brussels, 04.02.1998
                                          COM(1998) 56 final
                           Proposal for a
                 COUNCIL REGULATION (EC)
                  IMPOSING A DEFINITIVE
      ANTI-DUMPING DUTY ON IMPORTS OF GLYPHOSATE
      ORIGINATING IN THE PEOPLE'S REPUBLIC OF CHINA
AND COLLECTING DEFINITIVELY THE PROVISIONAL DUTY IMPOSED
                  (presented by the Commission)
 ---pagebreak---  ---pagebreak---                            EXPLANATORY MEMORANDUM
1. On 5 September 1997, the Commission imposed a provisional anti-dumping duty of
   21.1% on imports of glyphosate originating in the People's Republic of China (PRC).
2. The Commission subsequently continued to seek all the information it deemed
   necessary for it definitive findings. The main conclusions are stated below.
3. Given that the PRC is a non-market economy country, Brazil was used as an analogue
   market. On this basis the dumping margin was 38.2%.
4. As regards injury and causality, the main conclusions were that, between 1991 and the
   IP (1 September 1994 to 31 August 1995) the Community industry suffered significant
   reductions in prices and profits, in addition to a continuous loss in market share. This
   situation coincided with a constant increase in the volume and market share of
   glyphosate originating in the PRC, at prices that undercut the prices of the Community
   industry.
5. Importers in the Community argued that the situation of the Community industry was
   mainly due to the expiry of the patent on the Community market, held by one
   complainant Community producer up to 1991. However, it was found that irrespective
   of the expiry of the patent, the Chinese dumped imports clearly aggravated the
   injurious situation of the Community industry.
6. As regards Community interest it was considered that, the duties would ensure
   increased competition on the Community market.
7. Given that the injury margin determined, is lower than the dumping margin found, the
   definitive duty should be based on this lower level, in accordance with the provisions
   of Article 9(4) of Regulation (EC) N° 384/96. On this basis it is proposed to impose a
   definitive anti-dumping duty of 24.0% on imports of glyphosate originating in the
   People's Republic of China.
8. A majority of Member States in the Anti-dumping Advisory Committee were in
   favour of the imposition of definitive measures.
 ---pagebreak---                       COUNCIL REGULATION (EC) N°           798
                                          OF
                            IMPOSING A DEFINITIVE
           ANTI-DUMPING DUTY ON IMPORTS OF GLYPHOSATE
          ORIGINATING IN THE PEOPLE'S REPUBLIC OF CHINA
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) N° 384/96 of 22 December 19951 on
protection against dumped imports from countries not members of the European
Community, as amended by Regulation (EC) N° 2331/962, and in particular Article
9(4) thereof,
Having regard to the proposal submitted by the Commission after consulting the
Advisory Committee,
Whereas:
       OJL 56 of 6.3.1996
       OJL3nof6J2.!996
 ---pagebreak---                            A. PROVISIONAL MEASURES
(1)  By Commission Regulation (EC) N° 1731/97" (hereinafter referred to as the
     "provisional duty Regulation") provisional anti-dumping duties were imposed
    on imports of glyphosate falling within CN codes ex 29 31 00 80 and ex 3808
     30 27 originating in the People's Republic of China.
                           B. SUBSEQUENT PROCEDURE
(2) Following the imposition of the provisional anti-dumping measures, a number
    of interested parties submitted comments in writing.
(3) Importers in the Community, Chinese exporters, and both complainant
    Community producers requested and were granted a hearing.
(4) The Commission continued to seek and verify all information deemed necessary
    for its definitive findings.
(5) Parties were informed of the essential facts and considerations on the basis of
    which it was intended to recommend the imposition of definitive anti-dumping
    duties and the definitive collection of amounts secured by way of provisional
    duties. They were also granted a period within which to make representations
    subsequent to this disclosure.
      OJL 243 of 5.9.1997
 ---pagebreak--- (6)  The oral and written comments submitted by the interested parties were
     considered, and, where deemed appropriate, taken into account in the
     Commission's definitive findings.
        C. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT
/.     Product under consideration
 (7) As stated in recital (10) of the provisional duty Regulation, the product under
     consideration is glyphosate. This product can be produced in different grades or
     forms of concentration of which the main ones are the following: formulated
     (generally with 36% glyphosate content), salt (with 62%), cake (with 84%) and
     acid (95%),
     In order to reduce the costs of transportation, distributors normally purchase
     glyphosate in a concentrated form (usually acid, but also salt) and further
     process it to obtain the formulated glyphosate, the only form that can be used as
     an end-product, i.e. as a non-selective herbicide.
 ---pagebreak---  (8)   The Chinese exporters and a number of importers in the Community claimed
      that the various forms of glyphosate above referred to could not be considered as
      one product because they presented substantial differences in cost terms,
      customer structure, price and end use. One importer argued, in particular, that
      the transformation of acid into formulated glyphosate required further chemical
      processing and that the resulting formulated product was of different chemical
      composition than the acid form. The importers considered that, as a
     consequence, the acid form, which accounted for the majority of all glyphosate
      imported from the People's Republic of China during the investigation period
     and the formulated form, which accounted for the majority of sales of the
     Community industry in the same period, could not be considered as a single
     product.
(9)  However, these claims were not considered justified for the following main
     reasons :
            It was found in the course of the investigation that there were no basic
            differences in the chemical characteristics and properties of all above
            mentioned forms of glyphosate. Indeed, although the acid constitutes an
            intermediate stage in the production of the formulated form, the acid
            already contains the essential chemical properties of the formulated
            product.
 ---pagebreak---             Furthermore, although the above-mentioned forms of glyphosate have
            different grades^of concentration, thus justifying differences in cost or
            price, the transformation cost from one to the other are not substantial.
            Finally, it should be noted that all forms are dedicated to the same end-
            use, i.e. as a herbicide, albeit in the case of acid, salt and cake, following
            further processing into formulated, and cannot be used for any other
            purpose.
(10) It was therefore concluded that all forms should be considered as one product
     for the purpose of the investigation, irrespective of the glyphosate concentration.
2.     Like product
(11) One importer claimed that the glyphosate production process used in the
     Community and in Brazil (the analogue country) is different from that used in
     the People's Republic of China and that, as a consequence, the products
     resulting from these different processes are not alike.
(12) The investigation has confirmed that the production process used in the
     Community and Brazil, on one hand, and that used in the People's Republic of
     China, on the other, were different. However, the glyphosate produced by either
     processes was found to be identical in all respects.
 ---pagebreak---  (13) In the absence of other arguments, it was confirmed that the glyphosate exported
       to the Community by the People's Republic of China and that produced and sold
       by the Community industry were alike in all respects. The same applied to
       glyphosate produced in Brazil, when compared to glyphosate exported from the
       People's Republic of China and to that produced in the Community. All these
       products are therefore like products within the meaning of Article 1(4) of
       Regulation (EC) N° 384/96 (hereinafter the "Basic Regulation").
                                     D. DUMPING
 /.     Analogue country
(14) Some exporters and importers reiterated their opposition to the choice of Brazil
      as analogue country and made a number of counterproposals. The exporters and
      importers in particular argued that the Commission did not do enough to verify
      whether the alternative countries proposed were more appropriate than Brazil.
(15) In that respect, the Commission made a close examination of the
      counterproposals. It should be noted that in Indonesia all producers refused to
      co-operate with the Commission's investigation. Whereas in Brazil there are
      two producers and significant imports of the product concerned , in Argentina,
      Australia, India and Malaysia the markets are largely dominated by companies
      related to the main complaining producer located in the Community, i.e.
      Monsanto. In those circumstances, it was concluded that none of the countries
      proposed were more appropriate than Brazil.
 ---pagebreak--- 2.     Normal value
(16) Exporters requested the Commission to give justification for the determination
     of a constructed normal value for acid while domestic prices were used for the
     formulated product.
(17) In this respect it should be noted that as clarified to the exporters in the course
     of the investigation, normal value for acid was constructed pursuant to Article 2
     (3) of the Basic Regulation because the domestic sales to unrelated customers,
     although they were sold in representative quantities, were not sold in the
     ordinary course of trade. In the absence of further arguments concerning the
     establishment of normal value, the provisional determination is hereby
     confirmed.
3.     Export price
(18) In the absence of further arguments concerning the establishment of export
     price, the provisional determination is hereby confirmed.
4.     Comparison
(19) Exporters claimed that the Commission in determining the dumping margin had
     compared export prices of acid with the weighted average normal value of both
     acid and the formulated product. In this respect it is noted that export prices for
     acid were only compared with the normal value for acid. The same method was
     used for formulated. On that basis a weighted average dumping margin was
     then calculated.
 ---pagebreak---  5.      Dumping margins
 (20) The methodology used to determine the definitive dumping margin is the same
       as that used for the calculation of the provisional dumping margin. In the
       absence of any amendments to the establishment of the normal value and the
       export price, the provisional determination is hereby confirmed.
(21) The dumping margin established for definitive determinations expressed as a
       percentage of the CIF price at Community frontier, remains at 38.2%.
                                       E. INJURY
/.      Consumption in the Community market
(22) In determining total apparent consumption on the Community market, the
      Commission added the sales of Community producers to the imports into the
      Community.
(23) A further examination of the imports volumes originating in both the People's
      Republic of China and other third countries resulted in minor changes in the
      total volume of imports and, consequently, of consumption figures for the
      period examined. On this basis, Community consumption increased by 130%
      between 1991 and the investigation period.
 ---pagebreak--- 2    Volume and market share of imports
                             fa
(24) A number of importers contested the determination of market share held by
     imports originating in the People's Republic of China, as established in the
     provisional duty Regulation. They alleged that this market share was
     overestimated because it did not take into account the relative importance of
     imports from other third countries, such as the USA, India, Switzerland and
     Japan, which, according to these importers, were substantial under Eurostat
     statistics.
(25) In this context, it is recalled that, at the provisional stage, the determination of
     imports originating in third countries other than the People's Republic of China,
     was based on information provided by co-operating importers in the
     Community. As regards these imports, it was not considered appropriate to use
     Eurostat, because no precise figures for these imports could be established under
     Eurostat statistics. Indeed, Eurostat is available per CN code only. As the CN
     codes applicable to glyphosate are also applied to products other than the
     product concerned this course of action was deemed appropriate. In addition, it
     has been confirmed that as regards imports originating in the USA (by far the
     largest single import quantities declared under Eurostat), products other than
     glyphosate were imported under the same CN code as glyphosate, during the
     period examined. This would also appear to be the case as regards imports from
     other origins, since for some of these origins the import volumes reported by
     Eurostat largely exceeded the import volumes of glyphosate reported by
     importers.
 ---pagebreak---       For the reasons stated above, and in the absence of information which would
      justify a different approach, the volume of imports originating in third countries
      other than the People's Republic of China was definitively determined on the
      basis of information supplied by the importers.
(26) As regards imports originating in the People's Republic of China, at provisional
      stage, these imports were based on Eurostat, since the Commission was not
      aware of products other than glyphosate being imported from the People's
      Republic of China under the same CN codes as glyphosate. However, at the
      definitive stage it was considered appropriate to also base the findings
      concerning the development of Chinese imports on information supplied by the
      importers , since this information was considered reliable.
(27 ) The above analysis resulted in small changes in the assessment of consumption
      (recital 23 above) and consequently of the market shares of both imports and
      sales of the Community producers.
(28) Following the above, the total volume of dumped imports of glyphosate
      originating in the People's Republic of China increased continually and
      substantially, from a very low level in 1991 to 1487 tonnes in the investigation
      period. Glyphosate of Chinese origin was sold in its three main forms (acid, salt
      and formulated) and was sold in larger quantities in some Member States than in
      others.
                                            10
 ---pagebreak--- (29) The market share of these imports followed a similar progressive trend, from
     very low levels between 1991 and 1993, to 9% in 1994 and 11% in the
     investigation period, i.e. showing a very rapid rate of increase after 1993.
3.   Prices of the dumped imports and price undercutting
(30) A number of arguments were put forward by both the Community industry and
     importers regarding the price undercutting assessment made at the provisional
     stage.
(31) In this context, it is recalled that prices were compared at the formulated stage.
     In order to ensure a fair comparison of prices, and given the existence of a
     variety of types of formulated glyphosate on the market, the prices of which can
     vary considerably both according to the concentration of the product and the
     type of surfactant used, the Commission services selected the most common
     formulation, called "3A", which has 360g of glyphosate content per litre.
     Consequently, for this comparison, one type of "3A" produced by the
     Community       industry,      containing    a    special   type     of   surfactant
     (alkylpolyoalkylammoniumquat), designed to increase its efficiency, was
     excluded from the calculation.
                                             il
 ---pagebreak--- (32) One Community producer argued, however, that all types of formulations
     having identical concentrations are interchangeable from the consumer
      viewpoint irrespective of the surfactant used. According to this producer, all
      such types, including the one with the special surfactant, should therefore be
     used for a correct assessment of price undercutting by Chinese formulations.
     However, the information available indicated that the product with special
     surfactant was of better quality regarding efficiency and environmental impact
     than other types of identical concentration and, indeed, was sold at a price
     significantly higher than that of more common "3A" formulations of the
     Community industry. In order to ensure the comparability of prices, the
     approach followed at provisional stage was therefore maintained.
(33) Importers contested the prices used for the Chinese imports, which they argued
     were not representative because Chinese imports of formulated product
     accounted for a small percentage of all glyphosate imported from the People's
     Republic of China during the investigation period.
(34) As mentioned above it should be noted that the price undercutting assessment
     was made for formulated product combining both the prices of direct imports of
     formulated product provided by one exporter, and the prices of formulated
     product processed in the Community from Chinese acid, provided by co-
     operating importers in the Community. On this basis, the prices used accounted
     for a representative volume of all imports of glyphosate originating in the
     People's Republic of China.
                                          12
 ---pagebreak--- (35) On the basis of the above-mentioned approach, the price undercutting margins
     during the investigation, period were found to range from 2 to 13% of the
     Community industry's corresponding weighted average sales unit price.
4.   Situation of the Community industry
4.1. Market share
(36) The market share of the Community industry decreased continuously from 98%
     in 1991, to 95% in 1992, to 93% in 1993, to 86% in 1994 and to 85% in the
     investigation period.
4.2. Profitability
(37) The profitability of the Community industry was re-assessed to take account of
     factors such as financing costs which, in the case of one producer, had been
     incorrectly determined at the provisional stage. It was confirmed that one
     producer was incurring heavy financial losses in the investigation period. The
     profitability of the other producer decreased substantially reaching very low
     levels in the investigation period.
     In addition, a calculation of the profitability of this producer for the product
     types more exposed to competition from the People's Republic of China and
     used in the undercutting assessment revealed significant financial losses in sales
     of such product types.
                                         13
 ---pagebreak--- 4.3. Employment
(38) One importer argued that the employment figure for the Community industry
     provisionally determined, seemed overestimated because glyphosate production
     does not normally require as many people. The Commission confirms that, on
     the basis of verified information, in the investigation period the Community
     industry employed some 814 people in connection with the glyphosate activity.
(39) In the absence of other arguments, the other findings concerning the situation of
     (he Community industry, as slated in recitals (46) to (53) of the provisional duly
     Regulation, are confirmed.
4.4. Conclusion on injury
(40) Importers argued that in the light of the increase in capacity, production, sales
     volume and employment of the Community industry, it could not be considered
     that this industry had suffered material injury in the period examined.
     However, it is recalled, that, in accordance with Article 3(5) of the Basic
     Regulation, any one or more of the injury factors set out in this provision cannot
     necessarily give decisive guidance as to the impact of the dumped imports on
     the situation of the Community industry.
                                           14
 ---pagebreak---      In this context, it is noted, that in spite of the positive development of the above
     factors, which took place, in the context of a significant expansion of the market,
     during the period examined, the Community industry's market share decreased
     significantly, as did its prices and profits. Furthermore, it is recalled that, in the
     investigation period, and as underlined by the analysis of imports prices made in
     recitals (41) to (44) of the provisional duty Regulation, the Chinese dumped
     prices of acid were found to be below the manufacturing costs of acid of the
     Community industry. This shows the magnitude of the impact of such imports
     on the situation of this industry.
     The conclusion whereby the Community industry suffered material injury during
     the period examined, as set out in recitals (54) and (55) of the provisional duty
     Regulation, is, therefore, confirmed.
                                        F. CAUSATION
/.   Patent expiry
(41) Importers claimed that the situation of the Community industry and, in
     particular, the decrease in prices and profits of this industry, was mainly a
     consequence of the expiry of the patent held by one Community producer up to
     1991. The importers argued, in particular, that the decrease in glyphosate prices
     on the Community market was in line with other cases of patent expiry and that,
     as a consequence, the decrease in profitability of the former patent holder was to
     be expected.
                                             15
 ---pagebreak---       As regards any losses suffered by the other producer, these were claimed by the
      importers to be due to lack of anticipation of the price evolution that the market
      would follow after the expiry of the patent. The importers further claimed that
     the prices of glyphosate on the Community market during the investigation
     period were comparable to prices of the product on other world markets, e.g.
     Argentina, which showed that following the expiry of the patent the prices in the
     Community market had reached a normal level.
(42) It should be noted, in the first instance, that no new evidence was submitted on
     this subject following provisional findings, which would justify a change in the
     conclusions regarding causality. In particular, it is noted that as regards the
     comparison of prices of glyphosate in the Community and Argentina, no
     sufficient evidence was provided on the prices in the latter market or, indeed, on
     whether the conditions of competition in Argentina would be comparable to
     those in the Community following the expiry of the patent. It should further be
     noted that given the different situations for different markets as regards patent,
     no world price could be established for this product.
(43) Concerning the profitability of the Community industry, it is recalled that in
     spite of considerable reductions in costs of this industry, its prices decreased
     further than costs. In addition, the investigation revealed that this decrease in
     prices was considerably accelerated between 1993 and the investigation period,
     when the Chinese imports appeared on the Community market in significant
     volumes. This shows that, irrespective of the patent expiry, the Chinese imports
     had a negative impact on the level of Community market prices.
                                            16
 ---pagebreak--- (44) It is further noted with regard to the other Community producer which entered
     the market after the expiry of the patent, that it had made detailed forecasts of
     the decrease in prices that would follow the expiry of the patent. However, it is
     clear that prices went to much lower levels than anticipated.
(45) Finally, it is stressed that in the investigation period, the Chinese imports of acid
     were found to be below the manufacturing costs of the Community industry, i.e.
     at a level excluding any general, sales or administrative expenses, thus exerting
     a continuous downward pressure on the prices of the formulated product.
(46) In view of all the above elements, the conclusion in the provisional duly
     Regulation is maintained that the dumped prices largely influenced the level of
     prices and profits of the Community industry in the period examined.
     Furthermore, it is recalled that the impact of the dumped Chinese imports
     resulted in an increase of market share of these imports, to the detriment of the
     market share of the Community industry.
2.   Other imports
(47) As regards the effects of imports other than those originating in (he People's
     Republic of China, one importer claimed that the Commission had
     underestimated the volume of these imports, in particular of those originating in
     Hungary.
                                             17
 ---pagebreak---       For the reasons explained in recital (25) above, it is recalled that the volume of
      imports was based on information provided by importers. In this context, it is
      noted that other imports were found to have taken place from Hungary, Korea,
      Taiwan, Slovenia, India and Malaysia. The total market share of these imports
      was, in the investigation period, 3.2%, with individual market shares of less than
      1 % in all cases with the exception of Hungary, As regards Hungary, its market
     share was 2% in the investigation period, however, there was no evidence that
     the Hungarian prices were dumped.
(48) In the light of the above, it is unlikely that other imports had any significant
     impact on the situation of the Community industry.
3. Conclusion on causation
(49) Although it is not contested that the patent expiry had an impact on the
     Community industry's situation, it was concluded that the imports concerned
     have, in isolation, caused material injury to the Community industry The
     findings set out in recitals (56) to (60) of the provisional duty Regulation,
     concerning causation, are confirmed
 ---pagebreak---                              F.       COMMUNITY INTEREST
/.    Impact on importers/fqrmulators
(50) Importers in the Community claimed that the imposition of anti-dumping duties
      would force them to cut down an important part of their activities. However,
      since this claim was not substantiated and for the reasons set out in recitals (66)
      and (67) of the provisional duty Regulation, it could not be considered justified.
2.    Competition in the Community
(51 ) One importer alleged that the imposition of duties would strengthen the position
      of the former patent holder in the Community market, thus preventing
      competition from developing in this market.
(52) In this respect, it is considered that, on the contrary, measures would ensure the
      viability of new producers in the Community, as well as o\' (hose already
      producing, thus enlarging the number of competitors on the market.
(53) As explained in recitals (70) and (71) of the provisional duty Regulation, it is
      noted that, following the expiry of the patent, two new producers have entered
     the Community market. However, the investments made by these new producers
     are being jeopardised by the continued presence of the dumped imports, the
     prices of which have apparently continued to decrease after the investigation
     period.
 ---pagebreak---        It is therefore considered essential that fair conditions of competition are
      established on the Community market in order to ensure the viability of these
       producers, while encouraging the emergence of new ones.
 (54) Furthermore, given the difficulties encountered by the new producers due to the
      Chinese dumped prices there is a likelihood, that without the imposition of
      measures, competition in the Community would be limited to the former patent
      holder and the Chinese, to the extent that the former patent holder would
      economically be in a position to compete with the very low dumped prices of
      the Chinese exporters. It is considered that new entrants would ensure a more
      effective competition on the Community market as there would be a greater
      number of players involved on that market. In doing so, a greater variety of
      reliable sources of supply for Community consumers would be maintained than
      would be the case if Chinese imports were the only alternative to the former
      patent holder products.
3.    Conclusion on Community interest
(55) In the absence of any other arguments, the conclusions on Community interest
      as stated in recitals (61) to (74) of the provisional duty Regulation are
      maintained.
                                           20
 ---pagebreak---                                 H.  DEFINITIVE DUTY
                             fa
(56) The product type useâ as a reference to determine the duty rate was the acid
      form of the product concerned, because the acid form represented 67% of the
     volume of glyphosate imported from the People's Republic of China during the
     investigation period. Moreover, acid is the common base of all forms of
     glyphosate exported from the People's Republic of China and produced in the
     Community.
(57) For the purpose of calculating the injury elimination level, the Commission
     considered that the prices of the dumped imports should be compared with the
     production costs of acid of the Community industry plus a reasonable level of
     profit. In this context, the Community industry contested both the determination
     of its cost of production at provisional stage, in so far as it did not include
     certain R&D costs claimed by this industry, and the profit level used by the
     Commission, which the industiy considered to be underestimated for a product
     in the agrochemical sector.
(58) Specifically, the Community industry argued, that the Commission, at
     provisional stage, had improperly classified glyphosate acid as a commodity
     product and that this had resulted in an underestimation of both the R&D costs
     and the profit margin attributed to this product. The Community industry
     claimed that glyphosate acid is a highly technical product that requires
     continued research and development for compliance with environmental
     requirements.
 ---pagebreak--- (59) In this context, the producer concerned provided sufficient additional evidence
      showing the link of certain R&D costs with the product type concerned.
(60) Therefore, the cost of production of the Community industry, for the purpose of
      establishing the non injurious price level, was adjusted, where appropriate, to
      take account of these R&D costs.
(61) No further evidence was provided on R&D costs relating to glyphosate which
     should be taken into account at definitive stage. Furthermore, as far as the
     former patent holder is concerned, and given the effective duration of the patent
     protection for this company, it can be considered that any other significant
     research costs in relation to this product were already recovered.
(62) As regards profit, the Community industry argued that a profit level higher than
     that used at provisional stage would be adequate for the glyphosate business. In
     this respect, it should be noted that during much of the period examined, the
     prices on the Community market were influenced by the former existence of a
     patent, and latterly, by the presence of dumped Chinese prices. Therefore, it was
     not possible to obtain reliable information on the profit level this industry would
     be able to obtain in normal conditions of competition.
                                           22
 ---pagebreak---  (63) In any event, it should be borne in mind that, irrespective of whether acid should
      be qualified as a commodity, glyphosate has benefited during an extended time
      period from patent protection. Therefore, the level of profit of 5% on turnover
      was considered reasonable. It should be noted that the same level of profit was
      considered appropriate for producers in the analogue country (see recital (26) of
      the provisional duty Regulation).
(64) Furthermore, a small downward correction was found to be required in the
      amount of post importation adjustment added to the Chinese CIF export price of
      acid, in order that the comparison be made at the same level of trade.
(65) On the basis of the revised figures, the weighted average export price of acid,
      for the investigation period, on a CIF Community frontier level, adjusted to take
      account of customs duty and post importation costs, was compared with the
      weighted average cost of production of the Community industry, increased by a
      profit margin of 5%.
(66) This comparison resulted in an injury margin of 24.0%, on the basis of the net,
      free-at-Community frontier average price before duty.
(67) Since the injury margin is lower than the dumping margin found, the definitive
      anti-dumping duties should be based on this lower level, in accordance with the
      provisions of Article 9(4) of the Basic Regulation.
                                           ? )
 ---pagebreak---                 I.    COLLECTION OF THE PROVISIONAL DUTY
(68) Considering the conclusions on dumping and injury definitively established, and
     that the rate of definitive duty is higher than that provisionally determined, the
     amounts secured by way of the provisional anti-dumping duty should be
     definitively collected at the rate established in the provisional duty Regulation.
HAS ADOPTED THIS REGULATION:
                                         Article 1
1.   A definitive anti-dumping duty is hereby imposed on imports of glyphosate
     falling within CN Code ex 2931 00 95 (code Taric 29310095*80) and ex 3808
     30 27 (code Taric 38083027* 10) originating in the People's Republic of China.
                                            24
 ---pagebreak--- 2.    The rate of duty applicable to the net, free-at-Community- frontier price, before
      duty shall be 24%.0.  r {
3.    Unless otherwise specified, the provisions in force concerning customs duties
      shall apply.
                                       Article 2
The amount secured by way of provisional anti-dumping duty pursuant to Regulation
(EC) N° 1731/97 shall be definitively collected at the duty rate provisionally 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,
                                                      The President
                                          25
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(98) 56 final
                                              DOCUMENTS
EN                                                                 11 02 10
                                    Catalogue number : CB-CO-98-056-EN-C
                                                              ISBN 92-78-30776-9
Office for Official Publications of the European Communities
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