CELEX: 51989PC0118
Language: en
Date: 1989-03-07
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitiive anti-dumping duty on imports of paint, distemper, varnish and similar brushes originating in the People's Republic of China and definitively collecting the provisional anti-dumping duty on such imports (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 118
Vol. 1989/0035
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
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ont été déclassifiés conformément à l'article 5 dudit règlement ou sont considérés déclassifiés
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
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on the security rules for protecting EU classified information.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                       COM(89 ) 118 final
                                       Brussels , 7 March 1989
                            Proposal for a
                       COUNCIL REGULATION ( EEC )
   imposing a definitiive anti-dumping duty on imports of paint ,
     distemper , varnish and similar brushes originating in the
    People 's Republic of China and definitively collecting the
           provisional anti-dumping duty on such imports
                    ( presented by the Commission )
                                                          ."
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 ---pagebreak---                         OTLANATORY WORANUUM
  1 , Commission Regulation (EEC) No 3052/68^ of 29 September 1988 , as
  amended by Regulation (EEG) NO 3453/88*^ of 4 November 1980 , imposed
  a provisional anti-dumping duty on imports of paint , distemper , vanish
 and similar brushes originating in the People 's Republio of Chin® .
 2 . Following the introduction of this proviei on®! measure              the Commission
                   *                                      *
 oontinusd its investigation of the normal value and injury faotor® .
 3» As to dumping, the definitive normal valu# was established by
 referenoe to domestic prices in a market-economy country , in this case Sri Links .
 Over the period of the investigation (l July 1997 to 31 AuguBt 1998 ) the
weighted average dumping margin was found to be in exoeee of 90$.
4 . As to injury , the eelling prioe of the imports in question underout
 Community producers ’ prioee , over the period of the investigation , by
more than 70$ .      Then* import * were a contributory oauee not only of a
continuing generalised deoline in prioee on the Community market but
to falling Community output , a deoline in oap&oity utilisation rates
and a resultant increase in oosts .
3 . In the light of the quality , and type of the Chinese product end the range of
prices , it is considered appropriate to inpose an ad valorem duty at a rate
of 69$ whioh , while falling well short of the dumping margin , does not
exoeed the smallest margin of undercutting identified .
   OJ lfo L 272 , 4 Ootober 1988 , p . 16 .
   OJ No L 303 » 9 November 1988 , p , 11.
 ---pagebreak---                                         " 'i        "
                      CCUNCIL REOULATION ( SEC ) No ,../ 89
                              Ot « • ■
                   imposing a definitive anti-dumping duty on
                   imports of paint , distemper , varniBh and
                   similar brushes originating in the Foople'e
                   Republio of China and definitively collecting
                   the provisional anti-dutrping duty on suoh
                   imports
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Community ,
 Having regard to Oounoll Regulation ( ESC ) No 2423/98       11 July 1990
 on protection against dumped or eubeidi2ed imports from countries not
members of the Hiropean Eoonomio Community , and in particular Artiole
12 thereof ,
Having     regard to the proposal from the Commi salon , presented after
consultation within the Advisory Committee as provided for by that
Régulation ,
Whereaei
A. PROCEDURE
1 , Following a oomplaint lodged by the European Bntshware Federation
     ( FRIBP ) on behalf of Community manufacturer® of paint , distemper , varnish
     and similar brushes     who together account for vrtu«Uy the
    whole Community output of these products , the Commission published
    a notice in the Offioial Journal of ths :EUropean Communitios announcing
    tho initiation of &n anti-dumping proceeding concerning imports into
    the Community of paint , dieptcmpor , varnish and similar fcruohoo foiling
    within Common Customs Tariff subheading ax 96.C,'] B III , corresponding
    to Nimosa oodo 96,01-49 and , from 1 January 1988 ,
 1 ÛJ Nô L 209, 2.8.1988, p. 1 .
 ---pagebreak---                                                  ■2-
          to CN ooda ex 9603 40 10 , originating in the People 's Republic of Chinaf
         it then oommsnoad an investigation ,
   2 , Following the investigation , which established the existence of dumping
         and injury , the Chinese firm China National Native Produce 4 Animal
         By- Produces Import and Export Corporation offered an undertaking to
         limit the quantities exported to the Oommunity ,
   3 , 'Under the terms of the undertaking the Chinees firm waa to reduoe its
         exports so as to eliminate the injury to the Community industry .
        The Oounoil aooeptod thie undertaking. 3
B,      FAILURE TO COMPLY VftTH THE UNDERTAKING AND REOPENING OF THE PROCEEDING
  4 < After receiving and verifying information suggesting that Chinese exports
        in 1987 to the Federal Republic of Germany and the United Kingdom alone
        had far exoeeded the maximum allowed for the Community *e a whole in
        that year under the terms of the exporting firm 's undertaking, the commission
         withdrew the undertaking, inposed a provisional anti-dumping duty ( Reflation ( EEC) No
        3052/88^) and reopened the anti-dumping proceeding oenoerning imports
        of paint , distemper , varnish and similar brushes originating in the
        People 's Republic of China.?
о * ШШШ!
        5 * The investigation oonoerned paint , distemper , varnish and similar
        bruslics ( other then brushes of CN code 9603 30 ) falling within CN code *&G3 40 10.
        3 W No I 46, 14.2,1987 , p.. 45 ( Counoil Deoieion 87/104/^0 ).
        ^ OJ Ho l 2?2 t                  p. 16 , This Regulation was amended by Regulation
           ( ESC ) No 3453/ R3 ( 0J No h 303 , 8,12.1988 , p , 11 ) and extended by
           Regulation ( jiao ) No 377/19 (CJ No 1 23, '27.1 19^9 » P * 5). ).
       5 OJ No C 337, 4.10.1988, p. S ,
 ---pagebreak---  I
I
i                                     -3-
     6.    The Commission officially advised the exporter and import ore known to
           bo ooneerned , the authorities of the exporting oountry and Community
           produoere of the reopening of the proceeding ,   It sent questionnaires
           to the parties directly oonoemed and also gave them the opportunity
           to make known their views in writing and to request a hearing .
    7.     Twenty-two Community producers and five importere l'eturned the completed
          questionnaire to the Commission and made known their views in writing .
    8.    The China National Native Produoe A Animal By-Produote Import     A Export
          Corporation did not reply to the Commission 's questionnaire .   Consequently ,
          the findings with regard to that firm and other parties whioh failed to
          reply or otherwise indicate an interest were made on the basis of the
          faota available ( Artiols 7(7)(b ) of Regulation ( EEC ) No i       in
         this case invoioes obtained from Community producers end/or importers
         and official national and Community BtatietioB .
     9 . The exporter was informed of the Commission 's intention to propose
         that the Oounoil extend the provisional duty , and did not objeot .
   10 . Two importers asked for an opportunity to make known their viewB orally
         and to bs informed of the essential facts and oon si derations on the
         basis of whioh it is intended to reoommend the imposiiion of definitive
         measures , and their request was aooepted.
   11 . The Commission gathered and verified alL information ’>t deemed ts be
         necessary and oarrled out investigations at the preminoa of nine
         Community produoere i
     - Britton Chadwick, United Kingdom
     - Mosley Stone , United Kingdom
     - Harris , United Kingdom
     - Battys of Leeds , United Kingdom
 ---pagebreak---                                          4-
*
         - Kail i United Kingdom
         -  Sohabert , Federal Republic of Germany
         - Nako , Fédéral Republio of Cermany
         » Wletoba , Federal Republic of Germany
         - Bterkel , Federal Republlo of Germany ,
         and of five Oommunity Importers !
        - Delbanoo , United Kingdom
        -  Rothlander , Federal Republlo of Germany
    . -    Berg, Federal Republlo of Germany
         - Nolle / Federal RepybUt' of Germany
        -  St orchwerk ^ Federal Republlo of Germany ,
        The Commieeion asked fox4 and reoeived detailed written submissions from
        most of the producers concerned and carried out such verification of the
        information they contained as it deemed necessary .
  12 . The Commission visited the premises of two producers ir. Sri Lanka , Ravi Industries if. t d
         in Colombo and Harris ( Ceylon ) Ltd in Meegoda .
  13 . The Commi ssion' s investigation covered the period from 1 July 1987 to 31 August 1988ii
  »• M1
  (1 ) Normal,, value
 14 . In ordar to astablish whether the imports from the People 's Republio of
       China were being dumped , the Commission had to take aonount of the fact
       that the oountry does not have a market economy and therefore based its
       calculations on the normal value in a market-eoonoiry oountry .     In this
       oonneotion , the oomplalnants had suggested the Sri Lankan market ,
 15 . Two importers argued against the ohoioe of Sri. Lanka ae a reference market ,
       on the grounds that the product was not a like product within the meaning
      of Article 5? (l 2 ) of Regulation (EEC) No 2423/00 / that production ooste                '
      were not comparable , in particular beoauee Sri Lanka had to import some
      of the raw materials ; that the volume of produotion waB far smaller than
      that on the Chinese market / that
 ---pagebreak---                                              -5-
         Sr1 Lanka was not an exporter# or not a significant exporter# of the product to
         the Community ; that there was Insufficient competition# resulting in high
        domeetlo prloeej      and that one of the local producers was owned by a
        Community firm . The two importers accordingly proposed that Taiwan be
       used as a reference country *
 16 . The Commission , however, found that it was appropriate and not unreasonable
       to dse Sri Lanka for the purposes of establishing the normal value , and
       did not follow this suggestion *
       The comparison involving Taiwan suggested by the two importers was based
       on e finer# mainly synthet Ic-bristle " American " type of brush produced for export
       to the United States and C»nada# quite distinct from the Chinese product# and
       with different production ooBta .
       In any oase , when the Commission duly approached the main Taiwanese producers they
        refused to cooperate .
17 .     The Commission 1s satisfied that there is no appreciable differenoe, in terms of
         the type of product or th « production process# between S r 1 Lanka and the People'a
         Republic of Chins .
      The brushes from Sri Lankai like the Chinese product , are essentially
      made from animal hairs mounted on wooden handles .          Thie " European " type
      of brush corresponds to the European standard .         Tt » handle is of more
      or leaa the same thickness as that         of the Chinese product . Aooordingly , the
      th+ckwsis at the ferrule      and the number and waight of bristles per brush
      is aloe ulciilar .     The visible part of the bristle is at least as long as
     on thr- Chino ; e r -^ rfjct .      On this basis , therefore , the Sri Lankan
                UCJI bo r-Oocptod as a like product within the meaning of Artiols 2(12 )
     OV rf. yr         O'CC ) No 2425 / 88 ,
 ---pagebreak---                                          б
  It ha* been alleged that China 's possession of the main raw material * -
  in partioular , it is the world 's only producer of pig
  bristles - gives it a comparative' advantage , so thet its production costs
  ars lower than those of Sri Lanka.           The Commission wae unable to aooept
  this olaim , sinos oven assuming that suoh a comparative advantage exists ,
  oould be properly quantified and is not offset by competitive weaknesses ,
  It is not olsar how this would be reflected in the normal value if the
  same oonditions obtained in the marktt-eoonomy third oountry , given that
 prioes refleot demand ae well as hosts .           Moreover , even if it wore
 possible to obtain an exact measurement of suoh advantages or disadvantages ,
 any adjustment of costs established in a market economy on that basis
 would imply rellano* on ths oosts in a non-market eoonomy , whioh is
 preoiBsly what Artiols 2(5 ) of Regulation ( ffiEC ) Nc> 2423/88 is designed
 to prevent .
 In both countries ths main product is a flat brush ,            Manufacture is
 mainly by hand, in small-soale production units /.           The manufacturing pro¬
 cesses are oomparable , and it le irrelevant that China 's total output
                                                                                               I
is larger than Sri Lanka' B.
The same applies to the argument that Sri Unka it not a significant exporter
to the Community 1
As to the level of prioee in Sri Lanka , the Commission found that there
was sufficient domestio competition’ between two producers , which supply
                                                                                             1
approximately 90% of the home market , to ensure that prices were not excessive and were •   i
reasonably relatsd to produotion oosts .           The level of prioes ensured that Sri
Lsnkan manuf seturers earned reasonable but not excessive profits .             In these
olroumstanoes the Commleeion does not see why the faot that one of those
                                                                                           I
manufacturers is the subsidiary of a Community firm should prevsnt Sri
Lanka being used as a referenos oountry .
                                                                                           I
                                                                                           C
 ---pagebreak---                                          -7-
  13 . Consequently , the Commission established normal value on the basis of
          th« actual average Belling prioea from 1 July 1987 to 31 August 1988 on
         the Sri Lankan market *
          (h ) Broort Prloe
 1V . Wherever possible , export pricee were determined on the basis of the prices actually
         paid by the Community import ere to the exporters for the produot sold
         for export to the Community .
         ( o ) Qomparieon
20 .     In comparing the normal value with the export prioea , the Commission
        took aooount , where oiroumstanoes allowed and suffioient evidence was
       available , of differenoee affecting prioe comparability . Adjuatments
       were made to allow for differenoee in the phyeioal oharaoterietioe of
       the product , import charges and indirect taxes 1n Sri Lanka ,
       payment and delivery terms , transport and insurance oosta and various
        types of packaging,     With regard to the physical oharaoteristioe , the
       Commission also took into oonei deration the faot that the manufacture
      of round or angled brushes , which account fora very small proportion of China 's
      total brush exports , is oostlier than that of the flat brushes proiuoed
      in Sri Lanka .      All comparisons were made at the ex-works stage .
      (4 ) Kargins
 21 . Comparison of the normal value and the export prioeB        for the referenoe
      period      showed that imports from the People 's Republio of China are being
      dumped , the dumping margin being equal to the amount by whioh the
      nnrfr?.l value exceed*! the prioe of exports to the Community .
      Th . hu/roing margin varied depending on the type of bruah and the importing
       .         bta^o .  The weighted average margin for flat brushes wae found to
 ---pagebreak---                                                -ô-
       be very considerable , in excess . of 90% for exports to the Community as
       a whole .        The average margins on other types of brush were even higher .
      E. INJURY
     22 . ‘ It was found during; the investigation that 92$ of the Chinese exports
      went to five Community countries,          Germany , Ireland , the United Kingdom ,
      Franoe and Italy, but with an overwhelming concentration on the German ,
      Irish and United Kingdom markets .            Accordingly , the assessment of injury
     was oentred mainly, though not exclusively , on these three oountriee .
      (*) Like, oroduot
23 . Two importers argued that the Chinese exports were not comparable with
     the Community product .
     The Commission oannot aooept this view .              There are several types of paint
     bruehi the high-quality type for professional use and the lower-
     quality type * for non-professionals . The imports originating 1n China mainly
     H'ornpete’ i'rt’' th'li' second category , for which the Commission effected the
     comperieon .
     The Commission looked at brushes from a number of producers or importers in
     terms of a variety of factors :            the type and weight of bristle , the cooking
     process , the quality and preparation of.'the bristles , the’ quality and shape
     handle , the finish of the product , including the ferrule and glue , and the
     bverall strength of the brush . It found no oruoinl differaaoe between
    the oomparable Chinese and Community products in respeot of the purpose
    for whioh they were intended. The Commission found that these were like
    produots for the purposes of Artiole 2(12 ) of Regulation ( EEC) No 2423/88 *
 ---pagebreak---                                       -9-
        (b ) Export volume
  2A . in order to determine the trend of Chineee export# to the Community
       the Commission had to rely on available statistics and information
       supplied by the Community industry , einoe the exporter failed to
       reply to the questionnaire and only a few importer** offered eatiefaotory
       cooperation .
       Despite considerable fluotu&tione from time to time , the information
       available shows a marked growth in imports from China . Already standing
      at 10 million pieoee in 1980 , these had inoreaeed more than threefold
      by 1986t to 33 million pieoen , and rose again to 46 million pieoee in
      1987 and 31 million pieces for the first eix months of I988 alone ( equi ¬
      valent to 62 million pieoee on an annual basis ).
      This volume growth haa not been fully reflected in the values since
      the Chineee brushes are priced in dollars , and the dollar depreciated
      considerably in 198? and 1988 against both sterling and the German , mark .
      Ourrenoy movements exaoerbated the injury oaueod by the imports to
     the Community industry ( see point 27 ).
25 - Tmporte from China increased their market share from approximately 24$
     in 1984 to almost 38$ in the first half of 1988 ,   Over the same period
     Community consumption remained stable at around 145 million units .
     The growth of Chinese exports to the Community was assisted by the faot
     that they are liable to an anti-dumping duty of 125$ in the United Statee
    and a duty of over 100% in Canada .
 ---pagebreak---                                              “1 0"
      (o ) Pr?. os,
26- The Chinese product was      exported to the Community at pri oee on avur-ape
     more than 7C$ lower than the prices charged by the Community ;i ujuisfcry
     over the period of the invent ! gnti on Tor the lowest quality oi' brtuihj
     the exact level of undercutting varied according to the type of product f
     hut was never - lees than 47$ for any t:J ven product .      Theae fS garoa oun
    be oorreoted by '?.($• to allow for- the nli^htly rougher quality of manu¬
    facture of tho Ghinowe product ,       Jivan allaii •;/; for such un ad.iUHt.-uont ,
    however , the prices of the Chinese product ware           well below the level
    required to cover the costa of Community producer# and provide1 a rou ti¬
    er able profit .   In some case a the price a wore1, even below bho cor!; of
    the main raw material , namely . pigs bristles^ alee nuppliod by the e-amo
    exporter in the People 's HanuVlin of China .
    ( d ) Impact on the Community .industry
   27 . The flood of dumped import® depreRoed the £onerul level of pricoe
    on the Community market .    ht-on: ly/M to iy(iil « ellJ.»}; prices were virtually
    static despite tho faot that production eoute in tho Community inoreaeed
   appreciably over the same peri oil .
    Community producers have been forced to ali^n their prices on thone
   of the Chineee exporter .     The preaauro exert od on Community producer®
   by importer# thank# to the price of the Chinese good.# wao exacerbated
   by the faot that the dollar pri ceo at which they purchased the floods
   remained praotioally oonetant from 1984 'to 1903 while the dollar foil
   appreciably against Community ourronciou during that peri od .
   As u result of competition from Chjnoue .importe , Community j ij 1' uiuccru '
   market ehare fell from 60$ in 1984 to 57$ An 19OO -           This led 15 a .-fall of
   approximately £2# in production in the three.. Member: fit ates me inly
   oonoemed between          and 1$'88 ,
 ---pagebreak---                                                - il-
         1 aad-ln# in turn to substantlal capa city cutu o.v lower util.1 i’ati on vat « EI ,
         These (level opmentB , plue the declining prof! Inti lity of Community
         producers , hove led to closures ami tho lose n£ employment i.o ihiw Moot or .
         ( o ) Causait tv
 28 . The trend of imports from China at priocH aab start tidily undoj witting the
        Community product , coinciding with the very narked deterioration .1 );
        the situation of the Community industry , suggoste that thnee imports
        have caused material injury to the Community in dauby .
 29 . The Commi aoi on oonoidered whethor other faulruu might have bean /uo-
        pon aible for the injury to the Community industry *
       In this oonneotion a number of importers claimed that the closure of
        Community ftrms wae due to their non-competitive cost structure .                1'he
       Commi eel on found, however , that a number of Community manufacturer#
       oe&sed production solely baouuKe of the dumping of Chinese paint brushes , priced
       so low that the differomse could not bo nv.iU) up by moans of any rational ¬
       isation measures .
30 . The importers aloo olaimed that Community produonru had failed to adapt
      to changing consumer habits .            Tt war-j argued that the importers of the
       Chinese product heel c mated a new market for cheap rtiupoBuoln bjuidiciu , parti oulurly
      in supermarkets and do-it-youruelf centres , and that tJie traditional
      Community produoers were not interested in these outlets .              It
      was further olaimed that the Community producer :* thomeelvofa had bought
      oonoi deruble (plant! t .toy of Chinese brushes from ndepeiidc/i t          lapavturH
      in order to sell them at a profit and thua be able to finance their own production
      As to the first of these pointu , tho act; erl/I on that a now market hue
     been, created is unacceptable .          Tho product v*us al ready established on the market,
                                                                                                   *
      and t <- sal lit * lass than half tho usual            no doer not amount to the Introduction..
 ---pagebreak---                                           -.12-
     . of a new product . In any even !:, it is only because of the low price of
        the dumped goods that the consumer i u imUioed to diaourd a Tarn oh after
        limited use rather than going to the additional ocet and inoonveni enoe
        of ole<»ning it . It d a ( moreover , understandable that the Community
        induatry ie not interested in selling products which would only be attractive
        at prices below the variable production costa .
       Ae regards the sale of Chlneeia product B by Community producers thernnelvee ,
       the Commi union hue setabli died, on tho bonis of the facto avai.lii.blo , that
       the volume of euoh sales varied appreciably during the period of the
       invest ! gation depending on the Kembor State and the oompany oonremed .
       With the exception of u email number of f.! riiiia which have ceased production ,
       however , Community produoerm started selling Chinese paint brushes elcngslde
       their own products solely In order to prevent their tredlt ional merkets from
       being taken over by supplier ^ offering imported goods only .             The Commission 's
       finding was that Community producers did not in general import Chinoee
      products of their own volition but did »o only in aolf-defsnoe aguinot
      unfair competition .    Nor did the Commission’s investigations reveal any
      abusesj the Community producers rotjold the 'Chinese paint brushes- at a modest merk*u>
      at an high a price aa tho market would boar , but without excerieive profit ,
      and only to the extent neoewiiiary to ensure bho tmlw of their own products .
31 . Finally , the Commissi on looked at tho impact of export e originating in
      other third countries       *' t found that Imports from these countries had contracted 1n Una with
      the growth of imports from China , and accounted at preeont for no more
      than about 7$ of Community ooneumption .         Accordingly , they cannot be
      regarded aa a oouae of tho injury to the Corwminity industry .
 ---pagebreak---                                                                13
      ( f ) Conclusions
32 . In the circumstances the Commission has concluded that the effects of the dumped imoorts of paint , d-steroe r ,
     varnish or similar brushes originating in the People 's Republic of China taken in isolation must oe regarded
      as constituting material injury to the Community industry concerned . The Council has confirmed that conclusion .
      F.   COmJNITY INTEREST
33 . In view of the serious difficulties facing the Community industry, failure to take measures to eliminate the
     injury caused by dumping would endanger its existence, with a concomitant threat to employment in the
     regions concerned . In this connection it should be noted that the Community industry essentially consists
     of small and medium-sized enterprises, largely situated in areas of high unemployment . Accordingly, it is
     in the interest of the Community to take measures to eliminate the injury to this Community industry , ard such
     measures should take the form of a definitive anti-dumping duty . In view of the breach of the previous
     undertaking, a renewed undertaking would not constitute sufficient protection for Community producers .
34 . Two importers argued that in the context of trade with China, given the international division of labour
     and the structure of wage costs involved in the manufacture of cheap brushes in the Community, it was
     in the Community 's interest to encourage labour-intensive production in third countries . The Council
     does not dispute the need for international cooperation of this kind . It does not believe, however,
     that this goal is attained by the use of / in Commercial practices at the expense of Comrunity producers.
     The importers also argued that to impose anti-dumping measures could exclude certain importers from the
     Community market .
     The Council does not believe this argument is justified. The imposition of a duty represents equal
     treatment of all Conmunity importers , with no discrimination between those selling to different classes
     of user, irrespective of the channel of distribution . Nor does the proposed rate of duty in any way
     destroy the competitiveness of the Chinese products .
35 . No comments were forthcoming from consumers of the product .
     In weighing the interests of the Community brush industry against those bf consumers , nowever, the Council
     did consider the impact of the ant i -durrpi ng measures on consumers . Cn the grounds that a relative increase in
     the price of the Chinese product would still give it a substantial comper i t i on a V vant ag,e it
     concluded that consumer interests, were adequately safeguarded .
     G. RATE OF DUTY
36 . Taking into account the quality of the Chinese goods , the tyoes of product and range of prices , it is
     considered appropriate to apply «n ad valorem duty at a level substantially lower than the bumping margin,
     and not exceeding the lowest margin of undercutting identified .
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Accordingly , the definitive duty Is fixed at an ad valorem rate , of 69 %
of the net price per brush , free at Community frontier , not cleared
 through customs , payable by the flrt Importer in the Community .
For the same reason It Is also considered necessary that the amounts
secured by way of the provisional anti-dumping duty Imposed by Regulation
 ( EEC ) No 3052/ 88 , as amended by Regulation ( EEC ) No 3453/ 88 , should be
collected definitively ,
HAS ADOPTED THIS REGULATION :
                                     Art Icle 1
1.    A definitive anti-dumping duty Is hereby Imposed on Imports of paint ,
      distemper , varnish and similar brushes originating In the People 's
      Republic of China , corresponding to CN code 9603 40 10 .
2.    The duty shall be set at an ad valorem rate of 69 % of the net price
      per paint , distemper , varnish or similar brush , f ree-at -Commun I ty-
      frontler , not cleared through customs , payable by the first Importer
       In the Community .
3.    The provisions In force concerning customs duties shall apply .
                                     Art Icle 2
Amounts secured by way of the provisional anti-dumping duty Imposed by
Regulation ( EEC ) No 3052/88 , as amended by Regulation ( EEC ) No 3453/ 88 ,
shall be definitively collected .
                                     Art Icle 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 a 1 1 Member States .
Done at Brussels                                                For the Council