CELEX: 51988PC0829
Language: en
Date: 1988-12-12
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of serial impact fully-formed character printers originating in Japan (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 829
Vol. 1988/0272
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                         COM(88 ) 829 final
                          COUNCIL REGULATION ( EEC )
   imposing a definitive anti-dumping duty on imports of serial impact
           fully-formed character printers originating in Japan
                       ( presented by the Commission )
 ---pagebreak---                                                                            Ulf*
                            EXPLANATORY MEMORANDUM
1.    The Commission , by Regulation 2005/88 , Imposed a provisional anti ¬
dumping duty on Imports of serial impact fully formed character
( daisywheel ) printers originating in Japan . That duty was extended for a
maximum period of two months by Regulation ( EEC ) No 3451 / 88 .
2.    Following the Imposlton of provisional measures , the Commission has
continued its Investigation and confirmed Its findings on dumping
concerning the two companies which cooperated In the investigation .
Adjustments to elf values have led to slight modifications in the dumping
margins determined In the provisional regulations . The margins are
21.05% for Tokyo Electric Co . Ltd .   and 22.01% for Juki Corporation .
3.    For exporters which neither replied to the questionnaire nor
otherwise made themselves known to the Commission dumping was determined
as for provisional measures , on the basis of the facts available and it
was considered that the highest dumping margin In the complaint , 58% was
 the most appropriate for these exporters .
 4.   As regards injury , further Investigation confirmed that the
 Community daisy wheel Industry had experienced material injury caused by
 the dumped Imports .   This conclusion was mainly based on the increase
 in the market share of the Japanese exporters , the price depression for
 these printers , the price undercutting by the large majority of the
 Japanese exporters , the Increase In stocks , and the decrease of capacity
 utilisation and of profitability of the Community industry .
 ---pagebreak--- 5.   The further investigation established that the return on sales
realized during the reference period by the Community Industry was ,
however , higher than the profit rate taken Into account for the
provisional findings .  As a result , the Commission found that for the two
Japanese exporters which cooperated with the Commission no price Increase
at the Community frontier would be required to remove the Injury caused
by Japanese Imports .  As far as the non-cooperating exporters are
concerned , the result of the calculation is that , for these exporters ,
the prices have to be increased by 23.5% In order to remove the Injury .
6.   A number of exporters other than the two which cooperated fully in
the Investigation offered undertakings .   However , It was considered by
the Commission , after consultation , that these undertakings should not be
accepted since , the nature of the undertakings offered was such that ,
their acceptance would not offer a solution which was as appropriate as
the imposition of a definitive anti-dumping duty in the prevention of
unfair business practices .
7.    It Is proposed therefore to Impose a definitive anti-dumping duty of
23.5% on the printers concerned and to collect , as appropriate , the
amounts secured by way of provisional duty .
 ---pagebreak---                                Proposal for a
                          COUNCIL REGULATION ( EEC )
Imposing a definitive anti-dumping duty on Imports of serial Impact
fully-formed character printers originating In Japan
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 2005/88(2 ), imposed a
 provisional anti-dumping duty on Imports of serial Impact fully-formed
 character ( daisywheel ) printers originating In Japan . That duty was
 extended for a maximum period of two months by Regulation ( EEC )
 No 3451 / 88(3 ).
  (1)  OJ No L 209 , 2.08.1988 , p. 1
  (2)  OJ No L 177 , 8.07.1988 , p. 1
  (3)  OJ No L 302 , 5.11.1988 , p.30
 ---pagebreak---                                       - 2 -
B.    SUBSEQUENT PROCEDURE
2 . Following the Imposition of the provisional anti-dumping duty , a
number of exporters , a number of Independent Importers and the
complainant Community Industry , requested , and were granted , an
opportunity to be heard by the Commission . They also made written
submissions making known their views on the findings .
3.    Upon request , parties were also 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 they could make representations subsequent to these
disclosure meetings .     Their comments were considered and ,    where
appropriate , the Commission 's findings were modified to take account of
them .
4.     In addition to the Investigations leading to the preliminary
determinations , the Commission carried out further investigations at the
premises of the complainant companies .
C.    PRODUCT UNDER CONSIDERATION , LIKE PRODUCT AND COMMUNITY INDUSTRY
 5.    In Its provisional findings , the Commission concluded that the
 products under consideration are serial      impact fully-formed character
 ( SIFF ) printers .  The Commission considered that the similarities of all
 SIFF printers , as far as their technical and physical characteristics , as
well as their application and end use are concerned outweigh , for the
 purposes of these proceedings , their differences and that , therefore , all
 SIFF printers are like products .     Finally , the Commission Interpreted the
 term 'commun I ty Industry'as referring to the two Community producers which
 are members of Europrlnt .
 ---pagebreak---                                          - 3 -
6.    No arguments contesting these findings by the Commission were submitted-
The Council confirms the Commission 's conclusions as regards product
under consideration , like product and Community industry as stated In
recitals 6 to 13 of Regulation ( EEC ) N° 2005 / 88 .
D.    NORMAL VALUE
7.    Normal value was for the purpose of definitive findings ,       established
on the basis of         the methods used for the provisional determination of
dumping , taking Into account new evidence concerning the CIF Community
frontier value of the product under investigation submitted by the
parties concerned .
8.    The Council confirms the Commission 's provisional findings that
neither of the two exporters         concerned which cooperated in the
 investigation had sold , on the domestic market , a volume of own-brand
sales of the like product more than the threshold , established by the
Commission In previous cases , of 5% of the volume of exports of these
models to the Community .
 9.    It was thus considered that such-own brand sales to be Insufficient
 to by representative and that , accordingly , normal value for own-brand
 sales should be determined for all models on the basis of the constructed
 value .     The constructed value was established on the basis of the costs ,
 both fixed and variable In the country of origin of materials and
 manufacture for the model exported to the Community plus a reasonable
 amount for selling , administrative and other general expenses and profit .
 10 . As regards the amounts of selling , administrative and other general
 expenses and profit to be included in such constructed values , the
 Comm I ?o i on ' s provisional findings as set out In recitals 15 , 16 and 19 to
 23 of Regulation ( EEC ) No . 2005/88 against which no objections were made
 are confirmed by the Council .
 ---pagebreak---                                          4
11 . As regards sales to OEMs l.e . models sold to , and subsequently by ,
the OEM companies under these companies' brand names , the Council also
confirms the Commission 's provisional findings In recitals 17 and 18 of
Regulation ( EEC ) No . 2005 / 88 against which no objections were raised .
E.   EXPORT PRICE
12 . With regard to exports made directly to Independent Importers In the
Community , export prices were determined on the basis of the prices
actually paid or payable for the product sold .
13 . In all other cases , exports were made to a subsidiary company which
 Imported the product Into the Community . In such cases It was considered
appropriate , In view of the relationship between exporter and importer ,
that export prices be constructed on the basis of prices at which the
 Imported product was first resold to an Independent buyer . Discounts ,
rebates and the value of free goods directly linked with a sale under
consideration were deducted from the price to the Independent customer
and suitable adjustment was made to take account of all costs incurred
between Import and resale , including all duties and taxes .
14 . The Council also confirms the Commission 's provisional findings
regarding the calculation of export prices as stated In recitals 25 to 29
of Regulation ( EEC ) No . 2005 / 88 against which no objections were raised .
 ---pagebreak---                                       - 5 -
F. COMPAR ISDN
15 . In order to place the export price and the normal value on a
comparable basis , due allowance was made for differences affecting price
ccmparabl I Ity in accordance with Article 2 ( 9 ) and ( 10 ) of Regulation
( EEC ) No 2423/ 88 . Accordingly , the Commission took account , where
appropriate , of differences such as differences In physical
characteristics , and differences In selling expenses , where claims of a
direct relationship of these differences to the sales under consideration
could be satisfactorily demonstrated .      This was the case in respect of
differences In credit terms , warranties , commissions , salaries paid to
salesmen , packing , transport , Insurance , handling and ancillary costs .
16 . Normal values were determined for the two companies concerned , ex -
domestic sales companies or sales organisations .       Export prices were
established ex-export sales company or sales organisation .
 17 . As regards claims made for allowances under Article 2 ( 10 ) of
 Regulation ( EEC ) No 2423/ 84 In respect of certain overheads and general
 expenses , the Council confirms the Commission 's findings as set out In
 recitals 32 and 33 of Regulation ( EEC ) No . 2005 / 88 .
 ---pagebreak---                                           6
G. DUMPING MARGINS
18 . Weighted average values for each of the models of each exporter was
compared with export prices , adjusted where necessary , of comparable
models on a transact lon - by - transact Ion basis .  The examination of the
facts shows the existence of dumping In respect of Imports of daisywheel
printers originating In Japan from both the Japanese exporters
 Investigated . The margin of dumping was equal to the amount by which the
normal value , as established , exceeds the price for export to the
Community and expressed as a percentage of the respective CIF Community
frontier values was as follows :
         - Tokyo Electric Co . Ltd ., ( TEC ), Tokyo :           21.05%
                                                                 21 . 05%
         - Juki Coroporat Ion , Tokyo :                          22.01%
            ( previously Tokyo Juki    Industrial Co . Ltd )
19 . For those exporters which neither replied to the Commission 's
questionnaire , nor otherwise made themselves known , dumping was
determined on the basis of the facts available .         In this connection the
Commission considers that the Information contained in the complaint
provided the most appropriate basis for determination of the margin of
dumping and that It would create an opportunity for circumvention of the
duty to hold that the dumping margin for these exporters was any lower
 than the highest dumping margin ( 58% ) alleged in the complaint for a
company which did not cooperate In         the Investigation . For these reasons
 It is considered appropriate to use this latter dumping margin for this
group of exporters .    The Council confirms these findings .
                                                                                 (
 ---pagebreak---                                             7
H.     INJURY
20 . In Sts provisional findings , the Commission concluded that the
Community SIFF printers industry Is currently experiencing material
 Injury .   This conclusion was mainly based on the Increase In the market
share of the Japanese exporters , the price depression for SIFF printers ,
the price undercutting by the large majority of the Japanese exporters ,
the Increase In stocks , and the decrease of capacity utilisation and of
profitability cf the Community Industry ( see recitals 36 to 41 of
Regulation ( EEC ) N° 2005 / 88 ).
21 . Further Investigations at the premises of the Community producers
confirmed the existence of the        abovementioned Injury factors .   As far as
profitability ( return on sales ) is concerned , these investigations
confirmed also that the profits of the Community Industry had decreased
substantially since 1984 .      The actual return on sales realized during the
 reference period by the Community Industry was , however , higher that the
 profit rate taken into account for the provisional findings .
 Nevertheless , the Community industry 's return of sales fell by 40%
 between 1985 and 1987 .     On the basis of all these findings , the Council
 concludes that the Community SIFF printer Industry Is currently
 experiencing material Injury .
  I .  CAUSATION OF  INJURY
  22 „ in Regulation ( EEC ) N° 2005 / 88 , th6 Commission based its findings
 concerning causation mainly on the fact that , on the one hand , total
 consumption In the Community remained stable or showed only a slight
 decrease while the profitability of the Community Industry decreased
 dramatically and that , on the other hand , there was considerable market
 penetration and price undercutting by the Japanese exporters .          The
 ---pagebreak---                                          8 -
further investigations have neither given any indication which
would contradict these findings nor have the exporters submitted any
argument contesting the Commission 's conclusion . The Council concludes ,
therefore , that the dumped Imports from Japan have caused material Injury
to the Community Industry .
J.    COMMUNITY INTEREST
23 . In assessing whether It Is In the Interest of the Community to take
measures against the dumped SIFF printer Imports , the Council confirms
the Commission 's considerations In recital 47 of Regulation ( EEC )
N° 2005 / 88 .   In addition , It is considered that , In order to research and
develop new printer technologies , the Community Industry should be in a
position to realize , at present and In future , sufficient profits on
existing SIFF printer production and sales .       In this respect , the
Commission found that there had been a dramatic downward trend In return
on sales which endangers the viability of the Community Industry .        The
Council considers It necessary , therefore , to bring this profit erosion
to an end .     This would enable the Community Industry to continue its
 investments and Its research and development and , by doing so , to
preserve employment In this important sector of the business automation
 Industry .    Taking Into consideration the interests of OEM-buyers ,
distributors and end users as described in recital 49 of Regulation ( EEC )
N° 2005 / 88 , the Council Is of the opinion that Community Interests cal !
 for granting protection to the Community industry against unfair business
pract I ces .
K.    DUTY
 24 . When applying the duty calculation method , as explained in recitals
 52 to 60 of Regulation ( EEC ) N° 2005 / 88 , for definitve measures , the
 Commission had to take account of two new factors .      First , the return on
                                                                                N'
 ---pagebreak---                                     - 9 -
sales for SIFF printers was found to be higher than the figure used for
the provisional duty calculation ( see recital 55 of the provisional duty
Regulation ). Secondly , as far as the non-cooperating exporters were
concerned , the CIF value established on the basis of the average CIF
value calculated for the export of serial Impact dot matrix printers was
found to be higher than calculated for the provisional findings , l.e .
74.8% of the average resale prices to the first Independent buyer .
25 . As regards the actual profit realized by the Community industry ,
Europrlnt submitted two arguments .    First , the profit margin of 12%
( expressed as return on sales ) considered appropriate by the Commission
( see recital 52 of Regulation ( EEC ) N° 2005 / 88 ) was too low , and
secondly , the profit realized during the reference period ( which was
higher than that used by the Commission In its provisional calculation )
was highly influenced by satisfactory results on the Italian market where
the market presence of Japanese exporters was limited .       Therefore , only
the German , UK and French markets could be considered representative .        On
these markets , the returns on sales were much lower .
26 . As regards these arguments , the Council considers that for sales of
SIFF printers which have been on the market for a considerable period and
 for which the technological Importance has been reduced by the appearance
of more soph.ist Icated print technologies , a profit margin of 12% is
 reasonable .
 27 . As far as the requested exclusion of the Italian market from the
 profit calculation Is concerned , the Council considers that such an
 exclusion Is not Justified . According to Article 4(4 ) of Regulation
 ( EEC )   2423/88 , the effect of the dumped imports shall be assessed In
 relation to the Community production and paragraph 5 of the same Article
 stipulates that , for injury assessments , only in exceptional
 circumstances can the Community be divided Into two or more competitive
 markets . No evidence of such exceptional circumstances has been
 submitted .
 ---pagebreak--- 28 . The Europrlnt arguments could , therefore , not be accepted .
29 . On the basis of the Injury threshold calculation method described in
recitals 53 to 60 of Regulation ( EEC ) N° 2005 / 88 , and taking Into account
the two factors mentioned In recital 24 above , the Commission found that
for the two Japanese exporters which cooperated with the Commission no
price Increase at the Community frontier would be required to remove the
Injury caused by Japanese Imports of SIFF printers .      As far as the non¬
cooperating exporters are concerned , the result of the calculation Is
that , for these exporters , the prices have to be Increased by 23.5% In
order to remove the injury .
30 . Accordingly , and in order that the Injurious effect of the dumped
 imports should be eliminated , the Council considers It appropriate that
the amount of definitive duty to be Imposed should be 23.5% for the
exports of all Japanese exporters except TEC and Juki Corporation .      The
 latter two exporters should be exempted from anti-dumping duties .
31 . The definitive anti-dumping duty should apply to all serial Impact
fully-formed printers from Japan .
L.   UNDERTAK I NGS
32 . A number of exporters other than the two which cooperated fully In
 the Investigation offered undertakings .   However , It was considered by
 the Commission , after consultation , that these undertakings should not be
accepted since      the nature of the undertakings offered was such that
 their acceptance would not offer a solution which was as appropriate as
 the imposition of a definitive anti-dumping duty In the prevention of
unfair business practices .
 ---pagebreak---                                          11
M.   COLLECTION OF PROVISIONAL DUTY
33 . In view of the Importance of the dumping margins established and the
seriousness of the Injury caused to the Community Industry , the Council
considers It necessary that amounts by way of provisional anti-dumping
duty should be collected to a maximum of the duty definitively imposed .
Provisional ant I -dumping duties collected or securities received for SIFF
printers which are not covered by the definitive ant-dumping duty should
be released .
 HAS ADOPTED THIS REGULATION
                                     Art icle 1
 1.   A defintive anti-dumping duty is hereby imposed on Imports of serial
      Impact fully–formed printers falling within CN code ex 8471 92 90 and
      originating In Japan .
 2.   The rate of duty shall be 23.5% of the net f ree-at -Commun I ty-f ront ier
      price before duty , with the exception of Imports of the products
      specified in paragraph 1 which are sold for export to the Community
      by Juki Corporation and Tokyo Electric Co . Ltd which are exempted
      from this duty .
                                     Article 2
  The amounts secured by way of provisional ant I -dumping duty under
  Regulation ( EEC ) N° 2005/ 88 shall be collected at the rate of duty
  definitively imposed . Secured amounts which are not covered by the rates
  of duty definitively imposed shall be released .
 ---pagebreak---                                     12
                                Art Icle 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 Counc I I ,