CELEX: 51980PC0178
Language: en
Date: 1980-04-02
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) CONCERNING THE DEFINITIVE COLLECTION OF PART OF THE PROVISIONAL ANTI-DUMPING DUTY ON CERTAIN ACRYLIC FIBRES ORIGINATING IN THE UNITED STATES OF AMERICA (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 178
Vol. 1980/0054
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
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p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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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 European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
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,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM ( 80 ) 178 final
                                                  Brussels, 2nd April 1980
                  PROPOSAL FOR A COUNCIL REGULATION ( EEC )
            CONCERNING THE DEFINITIVE COLLECTION OF PART OF THE
         PROVISIONAL ANTI-DUMPING DUTY ON CERTAIN ACRYLIC FIBRES
                ORIGINATING IN THE UNITED STATES OF AMERICA
                (presented by the Commission to the Council )
                                         »           .
                                   v?-       '   ■■■
                                    v.       -  ^
                                   \ \ -
  COM ( 80 ) 178 final
 ---pagebreak---                      EXPLANATORY     MEMORANDUM
                                         J
By Regulation ( EEC ) No . 2712 / 79 of 30 November 1979 the Commission
imposed a provisional anti-dumping duty on certain acrylic fibres
originating in the United States of America which was extended until
4 May 1980 by Council Regulation ( EEC ) No . 522 / 80 . The Community 's-
anti-dumping Regulation ( EEC ) No . 3017 / 79 requires the Commission to
submit a proposal for definitive measures to the Council not later
than one month before the expiry of the measure .
Since tl>e extension of the Duty the Commission 's services have        . ^
continued their examination of this matter and have carried out
an enquiry with the only American exporter concerned .
This further, examination has established that since the entry into
force of the provisional measure no dumping has occured for one of
the products concerned whilst dumping continued to take - place for
the other product involved / the average margin of which . is 2.6% .
In these circumstances , the Commission submits the attached proposal
for a Council Regulation concerning the definitive collection of that
part of the provisional duty which relates to the product for
which dumping and injury have finally been established .
 ---pagebreak---                                                PROPOSAL
               COUNCIL    REGULATION   ( EEC )
   Conçerninq   the aefinitive collection of part of the orovisional anti-damping duty on .
      certain  acrylic fibres originating in the United States of America
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                                                                              »
   Having regard to the Treaty establishing the European Economic Community ,
  Having regard to Council Regulation ( EEC ) No . 3017 / 79 of 20 December 1979 on
  protection against dumped or subsidized imports from countries not members of the
  European Economic Community ( 1 ),
  Having regard to the proposal submitted by the Commission after consultation with
  the Advisory Committee set up under Article 6 of Regulation ( EEC ) No . 3017 / 79 ,
  Whereas on 11 May 1979 the Commission received a complaint submitted by CIRFS , the
  International Rayon and Synthetic Fibres Committee on behalf of the quasi-tota I ity
  of the Community producers of acrylic fibres , setting out evidence as to the
  existence of dumping of the like product originating in Greece , Japan , Spain , Turkey
  and the United States of America and of material . injury resulting therefrom ;
  Whereas , since there was sufficient evidence to justify initiating a proceeding
  the Commission published in the Official Journal of the European Communities of
  12 June 1979 a notice of the initiation of ah anti-dumping procedure concerning
  imports of certain acrylic fibres originating in Greece , Japan , Spain , Turkey and
  the United States of America(2 ), so advised the exporters and importers known by the
  Commission to be concerned , as well as representatives of the countries concerned
  and the complainants and commenced the investigation at Community level       and gave
  the parties directly concerned the opportunity to make known their views in               t
  writing and to be heard orally , and to meet so that opposing views might be             j
  presented and rebuttal arguments put forward ;                                           '–
                                    ^preliminary
Whereas , for the purposes of a determination of dumping and injury , the Commission
made on the spot investigations at the offices of the American exporters whose operations
were deemed to require investigation , namely the American Cyanamid Company , Wayne ,
New Jersey , USA and the Badische Corporation , Williamsburg , Virginia , USA ; whereas
( 1 ) 0J No . L 339 , 31.12.1979 , p. 1                      m
( 2 ) 0J No . C 146 , 12.6.1979 , p. 2
 ---pagebreak---                                       - 2  -
  similar investigations were carried out at the offices of Vomvicryl                    S.A.
Athens , Greece , Akritik Kimya Sanayii A . S. , Istanbul , Turkey ; whereas the Commission had
 carried out on the spot investigations at the offices of the main Community predueei**
 involved namely the Italian companies AnjC SPA ,. ; Milan ; Montefibre SPA , Milan ,
 Società Italiana Resina SPA ( S.I.R. ), Milan and SNIA Viscosa SPA , Milan ;
Whereas it emerged from the investigations carried out in Greece and Turkey that no
clumping existed in the case of the exports of- these producers to the Community and
the investigation was consequently closed in so iaf as they are concerned ;
Whereas to make a preliminary examination of the existence of dumping by American          -
producers , the Commission compared their export prices to the Community with those
ruling on the American market ;
Whereas weighted averages were used for these comparisons , which were made at the
ex-factory level- for sales during the period 1 June 1976 - to 31 May 1979 ;                  ~
Whereas all the allowance's claimed by the Badische 'Corporation for transport and
selling expenses were granted ; whereas , however , the company 's claim that first
quality material sold as development samples at low prices should not be included
in the overall net weighted average calculation for first quality material was
disallowed since the volume of the sales concerned constituted             a high
proportion of total sales and the company did not provide sufficient evidence
to justify its claim ;                  _i
Whereas, the allowance claimed by the American Cyanamid Company for transport
costs was granted ;   whereas , in the absence of sufficient evidence in suppott ,
of their claim that there were virtually no selling expenses on exports to the
Community , the breakdown of these costs was based on the available accounting
data , allocated proportionately to the turnover for each product and market under
consideration ; whereas the exporter in question requested in addition . a supplementary
adjustment for certain administrative and other expenses ; whereas , in the absence of
sufficient proof as to the direct relationship of these expenses withithe sales under
consideration , the Commission was not able to take this request into account ; whereas
a claim made by the American Cyanamid Company for differences in theproduction cost of
certain acrylic fibres sold in the domestic market as opposed to those sold in the
Community market was not allowed since the exporter in question refused to provide ,
documentary proof in support of its claim ;
 ---pagebreak---                                         - 3 -
  Whereas with regard to injury the evidence available tp the Commission during
I                               ^                         industry
I the preliminary sxaminet ion shewed that the Community/Tisd been making strenuous
  efforts to recover from the effects , experienced over many years , of virtual
  stagnation of production and consumption accompanied by considerable overcapacity
  and extremely high losses ;
  Whereas this process of recovery had entailed major efforts to reduce capacity
  and to rationalize which had resulted in an overall reduction of approximately 8%
  of the work force since 1977 , and attempts by the European producers to
  increase their selling prices in order to cover sharply increased raw material costs
  and to reach a reasonable profit situation ;
  Whereas , whilst these attempts were being made by Communtiy producers a significant
  increase in imports had taken place especially from the United States of America ;
  whereas the evidence available to the Commission showed that imports into the Community
  of acrylic fibres originating in the United States of America had increased from 7 611
  tonnes in 1977 to 10 719 tonnes in 1978 representing an increase of 41% , and to 4 301
  tonnes in the first quarter of 1979 ; whereas on the basis of available statistics
  continuous filament tow represented approximately 60% and discontinuous acrylic fibre
  represented 40% of American imports ; whereas the American market   share had nearly
  doubled since 1977 from 1.7% in 1977 to 3.4% in the first three months of 1979 ;
  Whereas US imports were concentrated -in Italy which , for the first quarter of 1979 ,
  received almost 75% of American exports to the Communty ; whereas these exports to
  Italy had increased from 1 794 tonnes in 1977 to 6 225 tonnes in 1978 representing ap
  increase of 246% and to 3 181 tonnes for the first quarter of 1979 indicating an annual
  increase of 104% compared with 1978 ; whereas the market share of these imports had
  increased from 1.1% in 1977 to 2.9% in 1978 and to 6.0% for the first three months
  of 1979 ; whereas these increased American exports to Italy had been at extremely
  Low prices undercutting Italian producers by approximately 25% ;   whereas this had
  resulted in a loss of orders for Italian producers and depression of prices and
   addi t iona I losses for Italian producers ;
  Whereas the evidence available to the Commission also indicated that this situation in
  Italy which represents approximately ~, 30% of Community production and approximately
 ---pagebreak---                                         - 4 -
 40% of Community consumption had a considerable impact on>'Other Community producers
 who traditionally export to Italy and who were also facing a difficult situation
 characterized by heavy losses , and who were currently force to meet artifically low
 American prices ;
                                                                                             X
 Whereas therefore      there was sufficient evidence to show that the dumped imports
 originating in the USA were undermining the process of recovery of Community producers ;
 whereas , consequently , these imports constituted injury to a Community industry ;
 Whereas , since this preliminary examination of the matter showed that there
 was dumping , that there was sufficient evidence of injury and that the interests
 of the Community called for immediate intervention , the Commission , by Regulation ( EEC )
 No . 2712 / 79(1 ), imposed a provisional anti-dumping duty on certain acrylic fibres
 originating in the United States of America ;
              since it had                                              •            (
 Whereas    / emerged from the preliminary examination of the facts that no dumping
 existed on imports from E.I. Dupont de Nemours and Company , Wilmington , Delaware ,
 USA . tJiis firm was excluded from the application of the provisional duty ;
           furthermore
 Whereas / one of the American exporters , Badische Corporation , Williamsburg , Virginia ,
 USA had voluntarily undertaken to                                           /     '
 increase its prices to levels which were considered satisfactory ; whereas this
 undertaking was accepted by the Commission , which accordingly decided to terminate
 the procedure concerning this company and to exclude it from the application of the
 provisional duty !                           /
Whereas subsequently the Commission by Regulation ( EEC ) No . 61 / 80(2 ),
 excluded Eastman Chemical International A.G. and Monsanto International Sales Company
 from . the application of the provisional duty ; since the information received by the
 Commission was sufficient to satisfy it that no dumping existed on their., exports
 to the Community .                             '   '   •                              '•
 Wereas moreover investigations' "                •   .   ,       '  ' " 7 ". '  .          . .
were earned out with tire main Spanish exporter in the course of which a price undertaking
was received which was considered sat is*actory by the Commission and the procedure was
consequently terminated as regards imports from Spain(3 );
( 1 ) 0J No . L 308 , 4.12.1979 , p. 11
( 2 ) 0J No . L 10 , 15.1.1980 , p. 7
( 3 ) 0J No . C 2 , 4.1.1980 , p. 6
 ---pagebreak---                                       - .5 -
Whereas since the examination of the facts of the matter had not yet been completed
and the American Cyanamid Company the only known exporter to whom the provisional
duty applied had reqye3tad that the duty be extended for a period not exceeding
two months , the Council by Regulation ( EEC ) No . 522 / 80(1 ) so extended the duty,®
Whereas in the course of the subsequent examination of the matter , completed
after the imposition of the provisional anti-dumping duty , the interested parties
had the opportunity to make known their views in writing , to be heard by the
Commission and to orally develop their views , to inspect non-confidential
information relevant to the defence of their interests and to be informed
of the essential facts and considerations on the basis of which it was intended to
made a final determination ; whereas the Community producersand some of the exporters
and importers concerned availed themselves of these possibilities by making known
their views in writing and orally ;
Whereas during the subsequent examination the Commission carried out a further
on- the - spot investigation at the offices of the American Cyanamid Company ;
Whereas for the purpose of this examination the Commission compared the export prices to
the Community of the company in question with those ruling on the American market ;
Whereas weighted averages were used for these comparisons , which were made at the
ex-factory level for sales during the period 1 December 1979 to 29 February 19S0 ,
the   latest date for which information is available ;
Whereas with regard to all the other elements affecting the dumping calculations ,
no new information was received or further arguments advanced which would have
altered the calculations ;
Whereas consequently it was finally established that since the date of entry into
force of the provisional' anti-dumping duty , no       .dumping existed for discontinuous
acrylic fibre and that the weighted average dumping margin for continuous filament
tow of acrylic fibres during this period is 2,6% .
 (1)  0J No L 59      4,3.1980 , p. 1
 ---pagebreak--- Whereas with regard to all the other elements affecting the determination of injury ,
no ne-w information was received nor further arguments advanced which could have
altered that determination ;
Whereas , therefore , the facts as finally established show the existence of
dumping and material injury to the Community industry concerned ;
Whereas ,- in these circumstances , protection of the Community 's interests calls for the
definitive collection of the amounts secured by way of provisional duty in respect
of those acrylic fibres originating in the United States of America for xhich dumping
existed during the period of application of the duty ;
                                                                      \
    Whereas , just prior to the expiry of the provisional duty American Cyanamid
    Company voluntarily undertook to increase its prices ; whereas acceptance of this
    undertaking and the subsequent termination of the proceeding with respect to
    American Cyanamid Company is under consideration by the Commission ;
    Whereas , the possible termination of the proceeding with respect to American
    Cyanamid Company will eliminate the necessity to impose a definitive anti-dumping
    duty because all major American exporters known will either have been excluded
    from the application of the provisional duty or will have given price undertakings ;
HAS ADOPTED THIS REGULATION :
                                    Article 1    '
The amounts secured by way of provisional duty . under Regulation ( EEC ) No . 2712 / 79
as amended by Regulation ( EEC ) No . 61 / 80 shall be definitively collected  insofar
as they concern continuous filament tow of acrylic fibre falling within Common
Customs Tariff subheading ex 56.02 A and corresponding to Nimexe Code 56.02-15
at     the rate of 2,6% on the basis of the value declared in accordance with
Commission Regulation No . 375 / 69 of 27 February 1969 on the declaration of
particulars relating to the value of goods for customs purposesd ).
 ---pagebreak---                                         - 7 -
                                      Article 2
This Regulation shall enter into force on the day 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
( 1 ) OJ No . L 54 of 3.3.1969 , p. 1