CELEX: 51988PC0543
Language: en
Date: 1988-10-12
Title: Proposal for a COUNCIL DECISION repealing Decision 87/104/EEC accepting an undertaking given in connection with the anti-dumping proceeding concerning imports of paint, distemper, varnish and similar brushes originating in the People's Republic of China (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 543
Vol. 1988/0188
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(88 ) 543 final
                                             Brussels , 12 October 1988
                                      Proposai for a
                                     COUNCIL DECISION
         repealing Decision 87 / 104 / EEC accepting an undertaking given in
    connection with the anti-dumping proceeding concerning imports of paint ,
                      distemper , varnish and similar brushes
                  originating in the People 's Republic of China
                             ( presented by the Commission )
                /S'*' K x
                X&\ Sort» 0«      ,
 ---pagebreak---                                                               C&r> r**f /
                           EXPLANATORY       ANDCJM
1. Council Decision 87/ 104/EEC of 14 February 1987 accepted an undertaking
   offered in connection with, the anti-dumping proceeding concerning
   imports of paint , distemper , varnish and similar brushes originating in
   the People 's Republic of China .
2. Under the terms of the undertaking , the Chinese firm China National
   Nature Produce and Animal By-Products Import and Export Corporation
   undertook to reduce its exports in such a way as to eliminate the
   injury suffered by the Community industry .
3. In May 1988 the Commission received information suggesting that the
   undertaking had not been complied with . The Commission verified the
   information brought to its attention and heard the Chinese exporter .
4. In the light of the facts , it is proposed to the Council that it revoke
   its above-mentioned Decision 87/ 104/EEC .
                                                                       г
 ---pagebreak---                                   Proposai for . a
                                 COUNCIL DECISION
                      repealing Decision 87 / 104 / EEC accepting an
        undertaking given In oonneotlan with the anti-dumping proceeding
      oanoeming imports of paint , distemper , varnish and siml.lAr brushes
                  originating in the People 's Repuhlio of China
 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^ ^ and in particular Article 10 thereof ,
 Having regard to the proposal from the Commission , presented after
 consultations within the Advisory Committee . as provided for under that Regulation .
 Whereas :
 1.   Following a complaint lodged by the European Brushware Federation
      (F6d£ration Europ^enne de 1' Industrie de la Brosserie et de la
      Pinceauterie - FKI HP ) on behalf of Community producers in all Member
      States of paint , distemper , varnish and similar brushes whose
      collective output constitutes practically all Community production of
      the products in question , the Commission published a notice in the
      Official Journal of the European Corrtnuni t i es \^ announcing the
      initiation of an anti-dumping proceeding concerning imports into the
      Community of paint , distemper , varnish and similar brushes falling
      within Common Customs Tariff subheading ex 96.01 B III , corresponding
(1 ) OJ No L 209 , 02.08.1988 , p .       1
( 2 ) OJ No C 103 , 30.4 . 19S6 , p . 2 .
 ---pagebreak---                                           - 2 -
      to NIMEXE code 06.01-49 and , from 1 January 1988 , to GN code ex
      9603 40 10 , originating in the People 's Republio of China ; it then
      oommenoed an investigation .
 2 . Following the investigation , which established the existence of dumping
      and injury , the Chinese firm China National Nature Produce S’ Animal
      By-Products Import 6? Export Corporation offered an undertaking limiting
      the quantities exported to the Community .
 3.   Under the terms of the undertaking , the Chinese firm undertook to
      reduce its exports to such an extent that the injury suffered by the
      Community industry would be eliminated . The Council accepted the
      undertaking - by Decision 87 / 104 / EEC ( 3 ).
 4.   In May 1988 the Commission received information suggesting that Chinese
      exports in 1987 to the Federal Republic of Germany and the United
      Kingdom alone far exceeded the maximum allowed for the Community as a
      whole in that year under the terms of the exporting firm 's undertaking .
 5.   The Commission examined the information brought to its attention and
      heard the Chinese exporter .
 6.   The Commission carried out an initial verification of the alleged facts
      using the official statistics available . Those statistics indicate that
      the tindertaking has indeed been broken . They confirm that imports of
      the product concerned from the People 's Republio of China into Germany
      and the United Kingdom alone far exceed the overall quantity laid down
      in the undertaking for the Community as a whole ; the United Kingdom
      authorities also supplied evidence that certain Chinese exports were
      transiting through Hong Kong , thus increasing the overall volume of
      exports originating in China , which amounts in this way to nearly twice
      that allowed under the undertaking .
                                                                            V
( 3 ) OJ No L 46 , 14.2.1987 , p. 45 .
 ---pagebreak---                                         - 3 -
 7.  The Chinese exporter claims that the quantities exported to the
    Community do not exceed the limits laid down in the undertaking . In
     support of this claim it supplied figures which do not , however , agree
    with those obtained from the Community importers , nor with those found
    in the official statistics referred to above , and do not include
    Chinese exports transiting through Hong Kong . The Chinese exporter was
    unable to put forward convincing arguments to refute the data obtained
    by the Commission .                It should be noted that under the terms
    of the undertaking accepted by the Council , the exporter undertook not
    to exceed the quantities laid down whether by direct or indirect
    exports , or through a subsidiary company , branch or agent .
8.  The Commission therefore has detailed evidence showing that the Chinese
    producer 's exports to the Community , whether direct or transiting
    through a third country , far exceed the annual figures laid down in the
    undertaking .
C. WITHDRAWAL OF ACCEPTANCE OF THE UNDERTAKING
9.  The Council considers that under these circumstances its Decision
    87 / 104 / EEC should be repealed and that a new examination   of the facts
    is warranted .
HAS DECTDED AS FQLLOWS :
                                    Sole Article
Decision 87 / 104 / EEC is hereby repealed .
Done at Brussels^                                        For the Counci l