CELEX: 51993PC0448
Language: en
Date: 1993-10-07
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of certain magnetic disks (3.5" microdisks) originating in Japan, Taiwan and the People' s Republic of China, and collecting definitively the provisional duty imposed

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(93) 448 final
                                                 Brussels, 7   October 1993
                               Proposal for a
                    COUNCIL REGULATION (EEC)
                 imposing a definitive anti-dumping duty
          on imports of certain magnetic disks (3.5" microdisks)
    originating in Japan, Taiwan and the People's Republic of China,
         and collecting definitively the provisional duty imposed
                      (presented by the Commission)
 ---pagebreak---                            EXPLANATORY MEMORANDUM
 1. The Commission, by Regulation (EEC) No 920/93(1) of 15 April 1993 imposed a
    provisional duty on imports of certain magnetic disks (3.5" microdisks) originating in
    Japan, Taiwan and the People's Republic of China. The Council, by Regulation (EEC)
    No 2206/93(2) of 5 August 1993 extended this duty for a period not exceeding two
    months.
2.  Following the adoption of the provisional measures, the interested parties, who so
    requested, were heard by the Commission and made written submissions.             Upon
    request, parties were informed of the essential facts and considerations on the basis of
    which it was intended to recommend the imposition of definitive duties and the
    definitive collection of amounts secured by way of a provisional duty. They were also
    granted a period within which to make representations subsequent to the disclosure.
3.  The oral and written comments submitted by the parties were considered and, where
    appropriate, the Commission's findings were modified to take account of them.
4.  The facts, as finally established, show dumping for almost all the exporters concerned
    as well as injury to the Community industry caused thereby, especially demonstrated
    by sales suppression, price depression and a resulting lack of profitability.
5.  In these circumstances, the Commission considers that it is in the Community interest
    to adopt definitive measures intended to eliminate the injurious effect of the dumped
    imports concerned. Consequently, in accordance with Article 12 of Council Regulation
    (EEC) No 2423/88(3), the Commission, after consultation within the Advisory
    Committee, proposes the imposition of definitive anti-dumping duties on imports of
    certain magnetic disks (3.5" microdisks) originating in Japan, Taiwan and the
    People's Republic of China.
0)  OJ No L 95, 21.4.1993, p. 5.
(2)
    OJNoL 196, 5.8.1993, p. 47.
(3)
    OJNo L209, 2 8.1988, p. 1.
 ---pagebreak--- 6. In view of the dumping margins established, and the seriousness of the injury caused
   to the Community industry, it is also proposed that the amounts secured by way of
   provisional anti-dumping duty be definitively collected to the extent of the amount of
   the duty definitively imposed.
 ---pagebreak---                                         Proposal for a
                             COUNCIL REGULATION (EEC)
                          imposing a definitive anti-dumping duty
                   on imports of certain magnetic disks (3.5M microdisks)
             originating in Japan, Taiwan and the People's Republic of China,
                  and collecting definitively the provisional duty imposed
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(1), and in particular Article 12 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.    PROVISIONAL MEASURES
(1)   The Commission, by Regulation (EEC) No 920/93(2) (hereinafter "the provisional
      Regulation"), imposed a provisional anti-dumping duty on imports into the Community
     of certain magnetic disks (hereinafter referred to as 3.5" microdisks) originating in
     Japan, Taiwan and the People's Republic of China (hereinafter "China"), and falling
     within CN Code ex 85 23 20 90. The duty was extended for a maximum period of two
     months by Council Regulation (EEC) No 2206/93(3).
(1)
     OJNoL209, 2.8.1988, p. 1.
(2)
     OJ NoL95, 21.4.1993, p. 5.
(3)
     O J N o L 196, 5.8.1993, p. 47.
 ---pagebreak--- B.  SUBSEQUENT PROCEDURE
(2) Subsequent to the imposition of the provisional anti-dumping duty, the interested parties
    who so requested were granted an opportunity to be heard by the Commission. Certain
    of those parties also presented written submissions making known their views on the
    findings.
(3) Two importers which had not cooperated in the investigation made written
    representations to the Commission following the introduction of the provisional anti-
    dumping duty. One of them requested and was granted a hearing.
(4) Upon request, parties were informed in writing of the essential facts and considerations
    on the basis of which it was intended to recommend the imposition of definitive duties
    and the definitive collection of amounts secured by way of provisional duty. They were
    also granted a reasonable period within which to make representations subsequent to
    the disclosure.
(5) The oral and written comments presented by the parties were considered, and, where
    appropriate, the Commission's findings were modified to take account of them.
(6) Because of the volume and complexity of the data examined, the investigation could
    not be concluded within the time limit provided for in Article 7(9)(a) of Regulation
    (EEC) No 2423/88 (hereinafter referred to as "the Basic Regulation").
C.  PRODUCT UNDER CONSIDERATION/LIKE PRODUCT
(7) As no new arguments have been presented regarding the product under consideration
    and the like product, the Council adopts the findings of the Commission as set out in
    recitals (7) to (12) of the provisional Regulation.
 ---pagebreak--- D.  INDIVIDUAL TREATMENT OF CHINESE EXPORTERS
(8) Several producers in China reiterated their request that the Commission make individual
    company findings for each of them, without, however, presenting any evidence
    additional to that submitted prior to the provisional findings and referred to at
    recital (13) of the provisional Regulation.
    The Commission recalls, in this respect, that individual treatment is not a requirement
    of the Basic Regulation. Indeed, the grant of individual treatment to some of those
    producers may affect or even distort the outcome of the calculation of the country-wide
    anti-dumping duty In addition, it is in practice extremely difficult to establish in the
    case of a country such as China whether a company really enjoys, both in point of law
    and in fact, independence from the State and in particular whether a company has
    permanent independence where it appears to enjoy independence at a given point
    in time.
    Finally, since the grant of individual treatment may cause inappropriate levels of duty
    to be imposed and gives rise to an opportunity for the State to circumvent anti-dumping
    measures by channelling through the exporter with the lowest duty, the Commission has
    come to the conclusion that departures from the general rule, whereby a single anti-
    dumping duty is established for State-trading countries, should only be made where the
    Commission is completely satisfied that the effectiveness of the measures is
    not undermined.
    In the provisional Regulation, the facts established for Hanny Magnetics (Zuhai) Ltd.
    during the Commission's investigation demonstrated that this company is free of
    government intrusion in the conduct of its business, and individual treatment was
    granted. In the light of the principles of legitimate expectations and legal certainty the
    Commission considers that the individual treatment granted to this company should be
    maintained. Furthermore, given the small difference found in the dumping margin for
    this producer and that applicable to the other producers, the risk of circumvention
    is minimal.
 ---pagebreak---      The findings at the said recital (13) are thus maintained.
(9)  The Council confirms the Commission's findings.
E.   DUMPING
1.   Normal yajug
(10) For the purpose of the definitive findings, normal value was, in general, established on
     the basis of the same methods as those used in the provisional determination of
     dumping, after taking into consideration new facts and arguments presented by
     the parties.
(11) Following publication of the provisional Regulation, one Taiwanese producer claimed
     that the normal value established should have been based on the prices of all sales of
     the like product on the domestic market, including sales made at a loss.
     As stated in recital (18) of the provisional Regulation, normal value in Taiwan for this
     producer was established in accordance with Article 2(3 )(a) and (4) of the
     Basic Regulation, on the basis of the price actually paid in the ordinary course of trade
     for domestic sales of the like product which were made in sufficient quantities to permit
     a proper comparison.
     However, it was found that the majority of its domestic sales of one product type were
     made at a substantial loss.     The Commission had, therefore, to exclude from the
     determination of normal value the sales of this product type, the prices of which did not
     permit recovery, in the normal course of trade in the investigation period, of all costs
     reasonably allocated.
     As regards the other product type, the producer in question was able to show that its
     prices for sales of this product were sufficiently profitable to be considered to have
     been made in the ordinary course of trade over the investigation period. Accordingly,
     normal value for this type was established by reference to those prices.
 ---pagebreak--- (12) The producer in China referred to in recital (21) of the provisional Regulation argued
     that the normal value established on the basis of an analogue third market economy,
     namely Taiwan, should be adjusted to reflect the lower manufacturing cost structure in
     China.
     The Commission cannot accept this argument.              To make allowances for alleged
     differences in cost structures in a State-trading country would involve relying on that
     country's costs of production, in particular its labour, utility and transport costs, property
     charges, and other inputs, which are not determined by market forces and would,
     therefore, not permit a proper comparison.
(13) The Council confirms these findings and those set out at recitals (15) to (23) of the
     provisional Regulation concerning normal value.
2.   Export price
(14) One Taiwanese producer claimed that, in its calculation of export prices, the
     Commission, for reasons of equity,         should have excluded export sales made to
     complainant Community producers.
     The Commission could not, however, accept any such exclusion, as the sales in
     question satisfied the provisions of Article 2(8)(a) of the Basic Regulation regarding the
     determination of export prices. Indeed, not only is such an exclusion not provided for
     by the Basic Regulation, but the reliability of these prices is unaffected, in the present
     case, by the status of the customer involved.
     The related problem of self-inflicted injury is addressed in recital (28) below.
(15) The Council confirms this view and the findings on the export price set out in
     recitals (24) to (28) of the provisional Regulation.
 ---pagebreak--- 3.   Comparison
(16) The Chinese producer referred to in recital (31) of the provisional Regulation claimed
     that the adjustment made to normal value to take account of differences in physical
     characteristics of the uncertified diskettes sold for export did not reflect the full value
     of these differences.
     The Commission has examined this question. It has noted that the purchaser runs a
     certain risk in purchasing uncertified diskettes, and consequently, an adjustment should
     be made to reflect the differences in physical characteristics. However, this producer
     was unable to provide new evidence substantiating the additional claim. In those
     circumstances, the Commission considers that the adjustment provisionally made
     reflected fully the differences established in physical characteristics. Consequently, the
     claim for an additional adjustment was rejected.
(17) Several other Chinese producers and one Taiwanese producer claimed that, in the
     comparison of normal value on the Taiwanese market with export price, no adjustment
     had been made to reflect the differences in direct selling expenses for sales to OEM
     customers on the export market and for sales to non-OEM customers on the domestic
     market. In its examination of the situation of the Taiwanese producer which made
     domestic sales in sufficient quantities to permit a proper comparison, the Commission
     found no indication that there was any difference in selling expenses incurred and profit
     realized in different channels of sale. No adjustment in this respect, therefore, could
     be made.
 ---pagebreak---  4.   Dumping margins
 (18) On the basis of the modifications made to the calculations of normal value and export
      price, the definitive dumping margins calculated by the Commission, expressed as a
      percentage of the CIF value, established in accordance with the provisions of Council
      Regulation (EEC) No 1224/80 of 28 May 1980 on the valuation of goods for customs
      purposes(4), as last amended by Regulation (EEC) No 4046/89(5), for each of the
      companies concerned, are as follows:
      Japan    Memorex Telex Japan Ltd.           49%      China     Hanny Magnetics
               Hitachi-Maxell Ltd.                32.8%              (Zuhai)Ltd.       35.6%
               TDK Ltd.                           44.8%              Other companies   39.4%
               Sony Ltd.                          60.1%
      Taiwan CIS Technology Ltd.                  19.8%
               Megamedia Ltd.                     32.7%
(19) As far as non-cooperating producers are concerned, no comments on the conclusions
      reached by the Commission in recital (37) of the provisional Regulation were received.
      In those circumstances, the Council confirms these findings and the dumping margin
      for non-cooperating producers is set at the level of the highest dumping margins for
      each country.
F     COMMUNITY INDUSTRY
(20) Producers in Japan and China challenged the Commission's finding in recitals (39) to
      (47) of the provisional Regulation that the five complainant producers represented a
      major proportion of Community production of 3.5" microdisks, and could therefore be
      considered to be the Community industry under Article 4(5) of the Basic Regulation.
      They argued, in particular, that the output of the producers in the Community found to
      be related to the producers in the countries subject to the proceeding should have been
(4)
      OJ No L 134, 31.5.1980, p. 1.
(5)
      OJ No L 388, 30.12.1989, p. 24.
                                               10
 ---pagebreak--- included in total Community production when calculating whether the output of the five
complainant producers constituted a major proportion of total Community production
of the product in question.
In this context, the Commission recalls that it is the consistent practice of the
Community institutions to accept that total Community production can only be
considered to mean the output of those Community producers which are not excluded
for the reasons given in first indent of the said Article 4(5). The output of producers
which are excluded from the definition of "Community industry" because of their
relationship to exporters should, therefore, be excluded a fortiori from total Community
production, when determining whether the Community industry represents a major
proportion of such production.
The rationale of Article 4(5) of the Basic Regulation is indeed that, for the
determination of injury, it should not be open to producers found to be related to
exporters to seek relief from unfair trading practices, since they may, through this
relationship, have participated in or benefited from injurious dumping. It is only by
excluding such producers, where appropriate, that the Community institutions can obtain
an undistorted and objective view of the effects of the dumped imports. If this was not
the case, then, in addition to contributing to the injury, producers related to exporters
 or otherwise benefiting from dumping would be in a position to hinder - or even
block - the attempts of complainant Community producers to seek legitimate relief
against the injury caused by dumped imports.
                                                                                          \
The Commission, therefore, maintains its findings at recitals (39) to (47) of the
provisional Regulation, that producers in the Community related to producers in Japan
should be excluded from "the Community industry" and that, on this basis, production
of 3.5" microdisks by the complainant producers represented around 77% of total
Community production during the investigation period.
                                         11
 ---pagebreak--- (21) The Council confirms these findings.
 G.  INJURY
1•    Cumulation of the effects of the dumped imports
(22) Some Japanese producers contested the Commission's findings on cumulation at recitals
     (50) to (52) of the provisional Regulation. However, no new arguments or facts were
     presented. The Council confirms the aforementioned Commission findings.
2.   Prices of dumped imports
(23) One Japanese producer and producers in China queried the basis for the Commission's
     statement at recital (55) of the provisional Regulation that the prices of imported 3.5"
     microdisks had undergone, in many cases, a decrease of more than 75% between 1988
     and the investigation period.
     The Commission has reviewed the information available to it in respect of export price
     trends since 1988. Prices declined substantially, varying by company and by product
     type, by between 23% and 79%.
     Furthermore, by comparing the prices realized at the beginning and at the end of the
     investigation period, price declines of 13% on average for un branded 3.5" microdisks
     and 31% for branded 3.5" microdisks were found over this period.
(24) One Japanese producer claimed that in establishing price undercutting, the Commission
     should have taken account of the fact that its sales to an exclusive distributor on the
     French market by its German subsidiary were made at a different level of trade to that
     of the relevant Community industry sales.
     Following the claim from the Japanese producer concerned, the Commission reviewed
     the undercutting calculations for this producer.
                                              12
 ---pagebreak---       The producer provided no evidence, however, to show that the tasks or activities of the
      distributor in France were any different from those of other distributors in the
      Community. In those circumstances, the Commission has, for this producer, established
      prices to distributors and compared them with prices for sales to distributors by the
     Community industry. In addition, prices to other categories of customer were compared
      at the same level.
     The result of the revised comparison of prices reveals an undercutting margin still
     within the range mentioned in recital (55) of the provisional Regulation.
(25) The Council confirms these findings, and those in recital (55) of the provisional
     Regulation.
3.   Situation of the Community industry
(26) As no new arguments or information were put forward, the Council confirms the
     Commission's findings as set out in recitals (56) to (61) of the provisional Regulation
     on the situation of the Community industry, and those relating to injury at recital (62).
H.   CAUSATION
(27) Two Japanese producers, on the grounds that the market share held by imports from
     Japan had fallen considerably over the period concerned, disputed the Commission's
     conclusion contained in recital (66) of the provisional Regulation, that the effects of
     imports from third countries not covered by the proceeding did not alter the fact that
     the dumped imports from Japan, Taiwan and China, taken in isolation, caused material
     injury to the Community industry. Those producers therefore requested that the effect
     of imports from Japan should not be examined cumulatively with those from the other
     countries concerned.
                                            13
 ---pagebreak---      The Commission recalls that it has been the consistent practice of the Community
     institutions, upheld by the Court of Justice of the European Communities, to examine
     the effect of the dumped imports as a whole, except where the level of dumped imports
     from a given country is negligible or otherwise does not contribute to injury.
     The Commission, in recital (54) of the provisional Regulation, acknowledged that
     imports into the Community of 3.5" microdisks from Japan had fallen between 1988
     and the investigation period.
     However, at 22%, their market share remained substantial, and was almost double that
     of the Community industry.
     Furthermore, the dumped imports from the three countries concerned, viewed
     cumulatively, attained a market share of 33.8% in the investigation period. That,
     together with the substantial price depression arising from the price undercutting by
     those dumped imports, could not have failed to have a marked negative effect on the
     situation of the Community industry, which had only recently been established.
     The Commission, therefore, maintains the findings at the said recital (66).
(28) Two Japanese producers questioned the Commission's recognition of under-utilization
     of capacity as an indicator of material injury at recital (57) of the provisional
      Regulation, when complainant Community producers were, at the same time, importing
      sometimes substantial quantities of the product concerned from the countries covered
      by the proceeding. Hence the Community industry was inflicting injury upon itself.
      As pointed out in recital (43) of the provisional Regulation, imports of 3.5" microdisks
      by all but one of the Community producers represented only a small proportion of their
      sales in the investigation period. Therefore, the arguments presented by the Japanese
      are not supported by the facts.
                                               14
 ---pagebreak---      It should be noted that the complainant producer which had a substantial level of
     imports also had a high capacity-utilization rate. No contradiction thus exists between
     the Commission's recognition of general capacity under-utilization and imports of 3.5"
     microdisks.     The imports were a consequence of the fact that, due to the effects of
     low-priced imports from the countries concerned, the producer in question had been
     unable to generate the investment funds needed to develop a production capacity
     sufficient to meet demand in the Community. At the time, that producer had no other
     reasonable choice but to act in self-defense, and did not therefore inflict injury on itself.
(29) The Council confirms the Commission's findings regarding causality and the injury
     attributable to other factors, and those contained in recitals (64) to (74) of the
     provisional Regulation.
L    COMMUNITY INTEREST
(30) Two Japanese producers argued that the imposition of duties at a time of shortage of
     supply on the Community market, with the Community industry unable to meet
     demand, would only serve to raise costs and prices, to the detriment of software firms
     and consumers.
     In recital (78) of the provisional Regulation, the Commission recognized that production
     by the Community industry is currently insufficient to meet the surge in demand that
     has recently occurred in the Community market.             Nevertheless, the Community
     industry, in an appropriate response to this development, has since the end of the
     investigation period acted to increase production capacity and, given the respite afforded
     by anti-dumping duties from the pricing pressures caused by unfairly traded imports,
     can be expected to continue to invest in this sector.        Moreover, new Community
     producers, in à further response to the market, have set up production facilities in the
     Community. The Commission considers it essential that the complainant Community
     industry and these new independent Community producers be given the opportunity
     to attain, in conditions of fair trade undistorted by dumping, the levels of profitability
     needed for economic viability. The Commission therefore maintains its findings on
     Community interest as set out in recitals (75) to (80) of the provisional Regulation.
                                               15
 ---pagebreak--- (31) One importer argued that the imposition of a definitive anti-dumping duty would only
      increase costs to users, without in any way helping the Community industry, as
      producers and exporters in countries not subject to the duty would take advantage of
      the higher prices engendered to increase market shares at prices below those needed by
      the Community industry.
      The Commission notes, however, that the purpose of the present proceeding is to
      address problems arising from the dumped imports from the countries concerned. It is
      not the purpose of anti-dumping measures to protect the Community industry from the
      normal operation of fair competition in circumstances in which there should be
      unhindered market access.
(32) As no other arguments were presented, the Council confirms these conclusions and
      those set out in recitals (75) to (85) of the provisional Regulation.
       DUTY
(33) In the provisional determination, the Commission established the amount of duty
      necessary to remove the injury on the basis of full costs of production plus a 10%
       return on sales. The complainant argued that the use of a profit margin of 10% is
       insufficient to meet the needs of the Community industry for investment to increase
       production capacity, marketing expenditure, and research and development of new
       products, and that the Commission should use a profit margin of between 12% and 16%
       of turnover to calculate the increase in prices necessary to remove the injury.
 (34) The Commission maintains its argument that, in respect of the relevant costs in the
       period covered by the investigation, it would have been unrealistic to expect profit
       margins for the Community industry above the 10% considered to be the minimum
       required to ensure the viability of that industry.
                                                16
 ---pagebreak--- (35) One Japanese producer argued that, because of its calculation of the duty required to
     remove injury, the Commission had attributed to the producers in the countries
     concerned not only that part of any injury suffered by the Community industry caused
     by imports from those countries but also the injury caused by other factors, notably by
     imports from countries not subject to the proceeding.
     The Commission rejects the contention.
     In its overall assessment of the situation, the Commission examined all potential causes
     of injury, to ensure that factors other than imports from Japan, Taiwan and China were
     not in fact responsible for the injury suffered by the Community industry.             This
     examination covered, as is pointed out in recital (66) of the provisional Regulation,
     imports from third countries not included in the proceeding, and it was found that, even
     if some of the injury could have been attributed to those imports, this did not alter the
     fact that the injury caused by the dumped imports from the countries subject to the
     proceeding was, taken in isolation, material.
     Furthermore, in line with consistent Community practice, the Commission has acted to
     remove the injury established by imposing duties only up to the limit of the dumping
     margins or the margins of underselling individually determined for producers found to
     be dumping. It is clear, therefore, that by adopting this approach, the Commission does
     not remove more injury than that caused by each exporter by its dumped imports, and
     does not. therefore, attribute to the dumped imports any element of injury that may have
     been caused by other factors.
(36) The difference between the prices for the Community industry, established in
     accordance with the method outlined in recital (81) of the provisional Regulation, and
     the prices of the dumped imports used to establish undercutting, as             outlined in
     recital (55) of the provisional Regulation, as adjusted by recital (27) of this Regulation,
     expressed on a weighted average basis and as a percentage of the free-at-Community-
     frontier price, established in accordance with the provisions of Regulation (EEC)
     No 1224/80, weie above the dumping margins found for all the producers in Taiwan
     and China, Mid ranged from 6.1% to 40.9% for producers in Japan.
                                               17
 ---pagebreak---      As far as non-cooperating producers are concerned, the Commission considers that the
     result of its investigation forms the most appropriate basis for the establishment of the
     level of duty, and thus concludes that the highest level of duty determined for a
     producer in the same country should be applied to the non-cooperating producers.
(37) The Council confirms the above findings of the Commission and the determination of
     the duty to be applied, as described in recitals (81) to (85) of the provisional
     Regulation.
K.   UNDERTAKINGS
(38) Several producers have suggested offering undertakings, and have been informed that
     the Commission is unable to accept undertakings in this case.           The Commission
     considers that the degree of non-cooperation in the proceeding, the rapidity of
     technological change in the product, and the volatility of prices, would render the
     observance of undertakings exceedingly difficult to monitor. In addition, the high level
     of mobility of the production facilities in the industry would be unlikely to contribute
     to the restoration of fair competitive conditions in the market.
(39) Given the above, the Council concludes that measures should be imposed in the form
     of definitive anti-dumping duties.
L.   COLLECTION OF THE PROVISIONAL DUTIES
(40) In view of the dumping margins established, the injury caused to the Community
     industry, and the latter's precarious financial situation, the Council considers it
     necessary that the amounts secured by way of provisional anti-dumping duty for all
     companies should be collected definitively. Where the provisional duty exceeds the
     duty rate definitively imposed, the amount collected should not exceed that of the
     definitive anti-dumping duty,
                                             18
 ---pagebreak---    HAS ADOPTED THIS REGULATION:
                                        Article 1
1. A definitive anti-dumping duty is hereby imposed on imports of 3.5" microdisks used
   to record and store encoded digital computer information falling within CN Code
   ex 8523 20 90 (Taric Code 8523 20 90*10), and originating in Japan, Taiwan and the
   People's Republic of China.
2. The rate of duty applicable to the net free-at-Community-frontier price, not cleared
   through customs, shall be as follows.
   (a) 40.9% in respect of the products specified in paragraph 1 originating in Japan
       (Taric additional code: 8708), with the exception of imports which are manufactured
       and sold for export to the Community by the following companies, which shall be
       subject to the rates of duty mentioned hereunder:
            Memorex Telex Japan Ltd.:           6.1% (Taric additional code : 8705)
            Hitachi-Maxell :                   20.6% (Taric additional code : 8706)
       -    TDK:                               26.7% (Taric additional code : 8707)
   (b) 32.7% in respect of the products specified in paragraph 1 originating in Taiwan
       (Taric additional code: 8710), with the exception of imports which are manufactured
       and sold for export to the Community by the following company, which shall be
       subject to the rate of duty mentioned hereunder:
             CIS Technology:                   19.8% (Taric additional code: 8709)
                                            19
 ---pagebreak---        (c) 39.4% in respect of the products specified at paragraph 1 originating in China
           (Taric additional code: 8712), with the exception of imports which are manufactured
           and sold for export by the following company, which shall be subject to the rate of
           duty mentioned hereunder:
                Hanny Magnetics:                   35.6% (Taric additional code: 8711)
3.     The provisions in force concerning customs duties shall apply to the said duty.
                                            Article 2
1.    The amounts secured by way of the provisional anti-dumping duty under
       Regulation (EEC) No 920/93 in respect of 3.5" microdisks shall be definitively
       collected. Where the provisional duty exceeds the duty rate definitively imposed, the
       amount collected should not exceed that of the definitive duty.
2.     Amounts secured in excess of the definitive rate of duty shall be released.
                                            Article 3
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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 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM(93) 448 final
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