CELEX: 51993PC0395
Language: en
Date: 1993-08-06
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1798/90 in respect of the definitive anti-dumping duty on imports of monosodium glutamate originating in Indonesia, the Republic of Korea, Taiwan and Thailand

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 C0M(93) 395 final
                                                 Brussels, 6 August 1993
                           Proposal for a
                      COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 1798/90 in respect of the definitive
       anti-dumping duty on imports of monosodium glutamate
         originating in Indonesia, the Republic of Korea,
                        Taiwan and Thailand
                   (presented by the Commission)
 ---pagebreak---                                         2 -
                                 Proposal for a
                            COUNCIL REGULATION (EEC)
     amending Regulation (EEC) No 1798/90 in respect of the definitive
             anti-dumping duty on imports of monosodium glutamate
                originating in Indonesia, the Republic of Korea,
                              Taiwan and Thailand
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing 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(*), and in particular Article 14
thereof,
Having regard      to the proposal     submitted by the     Commission after
consultation within the Advisory Committee as provided for under the above
Regulation,
Whereas :
A.    PREVIOUS PROCEDURE
(1)   The Council, by Regulation (EEC) No 1798/90( 2 ), as amended by
      Regulation (EEC) No 2966/92< 3 ), imposed a definitive anti-dumping
      duty on imports of monosodium glutamate (hereafter referred to as
      "MSG") falling within CN code ex 2922 42 00 originating in Indonesia,
      the Republic of Korea, Taiwan and Thailand, with the exception of
      imports from certain producers in these countries from which the
      Commission accepted undertakings by Regulation (EEC) No 547/90(^)
      and Decision 92/493/EEC< 5 ).
B.    REVIEW
      (i)      General
(2)   By a notice published in the Official Journal of the European
      Communities( 6 ), the commission, after consultation within the
      Advisory Committee and in accordance with Article 14 of Regulation
      (EEC) No 2423/88, initiated a review of the regulations and decision
      which imposed the anti-dumping measures currently in force and
      reopened the investigation. The review was limited to an examination
      of changed circumstances in injury, in particular the fact that the
      price undertakings accepted by the Commission have been rendered
      insufficient to eliminate the injury suffered by the Community
      industry.
(1)   OJ  No L  209, 2.8.1988, p. 1.
(2)   OJ  No L  167, 30.6.1990, p. 1.
(3)   OJ  No L  299, 15.10.1992, p. 1.
(4)   OJ  No L  56, 3.3.1990, p. 23.
(5)   OJ  No L  299, 15.10.1992, p.40.
(6)   OJ  No C  286, 4.11.1992, p. 3.
 ---pagebreak---                                  _ 3 -
     (ii)   Injury
(3) As far as the dumped imports are concerned, the Commission found
    that, between 19 89 and the first nine months of 1992, imports from
    the countries concerned increased from 3 800 tonnes to 9 696 tonnes,
    representing an increase in market share from 8.7% to 26.1%. The
    prices of these imports were, in US Dollar terms, in line with the
    prices set in the undertakings accepted by the Commission while in
    ECU terms they were lower by up to 20% over the period examined.
(4) As far as the situation of the Community industry is concerned, the
    volume of sales of MSG in the Community by that industry increased
    by 13% between 1989 and the first nine months of 1992 extrapolated on
    an annual basis, although the market share held by that industry
    decreased by 4.5% during the same period. The prices charged by the
    Community industry were, given the highly price sensitive nature of
    MSG, in line with those of the imports concerned, which, as stated
    above, were somewhat lower than the prices set in the undertakings.
    Consequently, the Community industry was prevented from further
    increasing its prices to a level adequate to remove the injury
    sustained.
(5) The Commission also found that while   the trend in costs and prices
    had put the Community industry back    into profits during the first
    nine months of 1992, these profits     were totally insufficient to
    ensure the viability of the business.   This lack of adequate profits
    furthermore threatens the industry's   investment programme and thus
    its competitiveness.
(6) The Commission concluded, therefore, that material injury is still
    being suffered by the Community industry despite certain positive
    effects of the anti-dumping measures currently in force. It was
    found that the remaining injury was caused by the continued low
    prices of the imports concerned in spite of the measures in force,
    and a subsequent increase in the volume of these imports.
    (iii)  Community interest
(7) The Commission considered that, given the small impact of the
    increase envisaged in the level of the measures on the users of MSG
    and the requirement that the Community industry be allowed to make a
    return on the substantial investments recently made, it was in the
    interest of the Community that the anti-dumping measures remain in
    force, duly amended to remove any remaining material injury.
    (iv)   Undertakings
(8) Having completed its investigation, the Commission disclosed its
    findings to the producers in the exporting countries concerned from
    which undertakings had been accepted before the initiation of the
    review. New price undertakings were subsequently offered by these
    producers with the exception of one company in Thailand which ceased
    exporting to the Community prior to 1992. Following consultations
    within the Advisory Committee, one Member State raised objections to
    the acceptance of the new undertakings. The Commission, by Decision
    93/.../EEC(7), subsequently accepted the new undertakings.
(7) OJ No L...
 ---pagebreak---                                     - 4 -
       (v)   Definitive duties
 (9)  The Commission also considered the situation of those producers in
      each of the countries concerned which had not made themselves known
      during the proceeding and were subject to a definitive anti-dumping
      duty. In this respect, recital 32 of Decision 93/.../EEC established
      that, since the dumping situation had not been investigated in the
      framework of the review, it was considered appropriate that the level
      of the definitive duties applicable to these producers remains
      unchanged.
      As to the company in Thailand which ceased exporting to the Community
      before 1992 and which did not offer a new undertaking, recital 33 of
      Decision 93/.../EEC established that no individual anti-dumping
      measures should be maintained for this company. Consequently, if
      this company should, in the future, resume exporting to the
      Community, it would receive the usual treatment given to any other
      exporter in Thailand which had not offered an undertaking.
C.    Amendment of Regulation (EEC) No 1798/90 following the results of the
      review
(10) The Council considers it appropriate in view of the foregoing
      findings to amend Regulation (EEC) No 1798/90 to include within the
      scope of the definitive anti-dumping duty applicable to imports of
      MSG originating in Thailand, future imports from that company which
      ceased exporting to the Community before 1992.
(11) The Community industry concerned was informed of the main facts and
      considerations on the basis of which the Commission intended to
      recommend the further amendment of Regulation (EEC) No 1798/90 and
      did not object,
HAS ADOPTED THIS REGULATION:
                                 Article 1
Article 1 of Regulation     (EEC) No   1798/90 is hereby  replaced  by the
following:
                                 "Article 1
1.    A definitive anti-dumping duty is hereby imposed on imports of
      monosodium glutamate falling within CN Code ex 2922 42 00 (Taric Code
      2922 42 00*10) originating in Indonesia, the Republic of Korea,
      Taiwan and Thailand.
 ---pagebreak---                                      5 -
2.    The amount of the duty applicable to the net, free-at-Community-
      frontier price, before customs duty, shall be as follows:
                             Amount of the duty     Taric additional code
      Indonesia               ECU 0.510 per kg             8400
      Republic of Korea       ECU 0.189 per kg             8402
      Taiwan                  ECU 0.653 per kg             8404
      Thailand                ECU 0.407 per kg             8406
      with the exception of imports of the product specified in paragraph 1
      produced by the following companies, which shall be excluded from the
      duties :
                                                    Taric additional Code
      Indonesia                                            8401
      - PT Sasa
      - PT Indomiwon Citra Inti
      - PT Cheil Samsung Astra
      Republic of Korea                                    8403
      - Miwon Co Ltd
      - Cheil Foods & Chemicals Inc
      Taiwan                                               8405
      - Tung Hai Fermentation Industry Corporation
      - ve Wong Corporation
                                                           8407
      Thailand
      - Thai Fermentation Industry corporation.
3.    The provisions in force concerning customs duties shall apply."
                                 Article 2
This Regulation shall enter into force on the day following that 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.
Done at Brussels,                                   For the Council
                                                    The President
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                                                               COM(93) 395 final
                                                       DOCUMENTS
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