CELEX: 51995PC0140
Language: en
Date: 1995-04-18
Title: Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 2271/94 imposing a definitive countervailing duty on imports of ball bearings with a greatest external diameter not exceeding 30 mm, originating in Thailand but exported to the Community from another country

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    Brussels, 18.04.1995
                                                    COM(95) 140 final
                                    Proposal for a
                         COUNCIL REGULATION (EC)
amending Regulation (EEC) No 2271/94 imposing a definitive countervailing duty on
  imports of ball bearings with a greatest external diameter not exceeding 30 mm,
   originating in Thailand but exported to the Community from another country
                           (presented by the Commission)
 ---pagebreak---                          EXPLANATORY MEMORANDUM
(1) In September 1994, the Council, by Regulation (EEC) No 2271/94, amended the
    definitive countervailing duty on imports of ball bearings with a greatest external
    diameter not exceeding 30mm, originating in Thailand but exported to the
    Community from another country, to 5.3%.
(2) This duty had been imposed following a review of Commission Decision
    90/266/EEC accepting an export tax undertaking offered by the Royal Thai
    Government, in connection with the anti-subsidy proceeding concerning imports of
    the. above-mentioned ball bearings. This review revealed that a duty was necessary
    in order to prevent indirect imports into the Community avoiding the export tax
    levied by the Royal Thai Government on direct imports and to safeguard the
    effectiveness of the undertaking.
(3) The level of the definitive duty is based on the rate of export tax, expressed as a
    percentage of the net, free at the Community frontier, price of the product. The
    amended rate of 5.3% imposed by Regulation (EC) No 2271/94 reflected a revised
    rate of export tax of 0.72 bant per piece, as determined by Decision 94/639/EC.
(4) In December 1994 the Commission decided to review the above Decision and
    Regulation. In carrying out this review, it has recalculated the amount of subsidy
    granted to the Thai exporters at 0.66 bant per piece. The Royal Thai government
    has accordingly modified the rate of the export tax on ball bearings exported
    directly to the Community.
(5) It is proposed to amend the definitive countervailing duty rate on indirect imports
    to an amount equivalent to the new rate of export tax (0.66 bant per piece). This
    amounts to 4.8% ad-valorem.
                                                   &
 ---pagebreak---                                            1-95-166
                        COUNCIL REGULATION (EC) No ....../95
                                       of           1995
  amending Regulation (EEC) No 2271/94 imposing a definitive countervailing duty on
       imports of ball bearings with a greatest external diameter not exceeding 30 mm,
        originating in Thailand but exported to the Community from another country
THE COUNCIL OF THE EUROPEAN UNION
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 3284/94 of 22 December 1994 on
protection against subsidized imports from countries not members of the European
Community1, and in particular Article 13 thereof,
Having regard to the proposal submitted by the Commission after consultation within the
Advisory Committee,
Whereas:
1
  O.J. No L349 31.12.1994, p.22
 ---pagebreak---                                     A. BACKGROUND
(1)    In September 1994, following a review, the Council, by Regulation (EEC)
       2271/942, amended the definitive countervailing duty imposed on imports of ball
       bearings with a greatest external diameter not exceeding 30 mm, originating in
       Thailand but exported to the Community from another country, from 6.7% to 5.3%.
(2)    The 6.7% countervailing duty had been imposed in July 1993 by Regulation (EC)
       1781/933, following a review of Commission Decision 90/266/EEC4 accepting an
       undertaking offered by the Royal Thai Government, in connection with the
       countervailing duty proceeding concerning imports of the above-mentioned ball
       bearings. This involved the Royal Thai Government levying an export tax to offset
       the subsidies granted. No countervailing duty was imposed at the time of adoption
       of this Decision. The review investigation revealed, however, that a duty was
       necessary in order to prevent indirect imports into the Community evading the
       export tax levied by the Royal Thai Government on direct imports and to safeguard
       the effectiveness of the undertaking.
(3)    The amended definitive duty rate of 5.3% on indirect imports, imposed by
       Regulation (EC) No 2271/94, was based on the revised rate of export tax of 0.72
       bant per piece, as determined by Decision 94/639/EC5, following a further review.
                          B. REOPENING OF INVESTIGATION
(4)    In December 1994, the Commission initiated a review of Decision 94/639/EC and
       of Regulation (EC) No 2271/94, by a notice published in the Official Journal of the
       European Communities6
(5)    The purpose of this review was to recalculate the amount of subsidy granted by the
       Royal Thai Government, with a view to allowing a modification of the rate of
       export tax established by Decision 94/639/EC. Since the rate of countervailing duty
       on indirect imports directly reflects the export tax rate, the review also covers
       Regulation (EC) No 2271/94 imposing the definitive duty.
2
  OJ. No L247 22.9.1994 p. 1
3
  O.J. No L163 6.7.1993 p.l
4
  O.J. No L152 16.6.1990 p.59
5
  O.J. No L247 22.9.94 p.29
6
  O.J.NoC348 09.12.94p.5
                                                          ©
 ---pagebreak--- (6) The Commission officially advised the Royal Thai Government, the exporters and
    importers known to be concerned, as well as the complainant in the original
    investigation (Febma) and gave the parties directly concerned the opportunity to
    make their views known in writing and request a hearing. The Royal Thai
    Government, the exporters located in Thailand and the Community producers,
    represented by Febma, made their views known in writing.
(7) The Commission sought and verified all information it deemed to be necessary for
    the purposes of a determination and carried out an investigation at the premises of
    the following:
    (a)       Royal Thai Government:
              Department of Foreign Trade, Bangkok,
              Board of Investment, Bangkok
    (b)       Thai exporters:
              NMB Thai Ltd, Ayutthaya, Thailand
              Pelmec Thai Ltd, Bang Pa-In, Thailand
              NMB Hi-Tech Ltd, Bang Pa-In, Thailand.
    All these exporting companies are wholly-owned subsidiaries of Minebea Co. Ltd.,
    Japan.
(8) Upon request, parties were informed of the essential facts and considerations on the
    basis of which it was intended to recommend the amendment to the rate of
    definitive countervailing duty. They were also granted a period within which to
    make representations subsequent to the disclosure.
    The written comments submitted by the parties were, where appropriate, taken into
    consideration.
                 C. RECALCULATION OF SUBSIDY AMOUNT
                                                           ©
 ---pagebreak--- (9)    It has been determined that the countervailable subsidies granted to the exporters in
       Thailand in the period 1 October 1993 to 31 March 1994 ("the investigation
       period") amount to 0.66 baht per piece. The Royal Thai Government has
       accordingly amended the export tax rate on ball bearings exported directly to the
       Community to 0.66 baht per piece, and has offered a modified version of the
       undertaking to this effect. This has been accepted by Commission Decision
       95/.../EC7, which also explains in detail the reasoning with regard to the calculation
       of the amount of subsidy.
                           D. INJURY AND COMMUNITY INTEREST
(10) No new evidence was supplied with regard to injury or Community interest. The
       Council therefore maintains its conclusions set out in Regulation (EC) 2271/94
       concerning these matters.
                           E. AMENDMENTS TO DEFINITIVE DUTY
(11) In view of the change in the export tax rate from 0.72 to 0.66 baht per piece, the
       rate of definitive countervailing duty on indirect imports should be amended
        accordingly to an amount equivalent to the new export tax rate. When expressed as
        a percentage of the net, free-at-Community-frontier, price of the product, the new
        rate of countervailing duty amounts to 4.8%.
    F. COLLECTION OF ANTI-DUMPING AND COUNTERVAILING DUTIES
(12) As explained in recital (12) of Regulation (EC) No 2271/94, the countervailing
        duty should continue to be collected in addition to the anti-dumping duty imposed
        by Regulation (EEC) No 2934/908.
        The combined amount of anti-dumping and countervailing duty to be collected in
        this case is, therefore, 11.5% (6.7% anti-dumping duty plus 4.8% countervailing
       duty).
       The basis for calculating the amount of both anti-dumping and countervailing duty
        should be the same net, free-at-Community-frontier, price of the product,
7
   See page ... of this Official Journal
8
  OJ.NoL281 12.10.1990 p.l
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                         Article 1
Article 1 of Regulation (EC) 2271/94 is replaced by the following:
"Article 1(2) of Regulation (EEC) No 1781/93 shall be replaced by the following:
      "2. The countervailing duty expressed as a percentage of the net, free-at-
      Community-frontier, price of product, shall be 4.8%".
                                        Article 2
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
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(95) 140 final
                                              DOCUMENTS
EN                                                                       02 11
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                                                             ISBN 92-77-87780-4
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