CELEX: 51982PC0291
Language: en
Date: 1982-05-18
Title: Proposal for a COUNCIL DECISION terminating the anti-dumping proceeding concerning imports of certain refrigerators originating in Czechoslovakia, the German Democratic Republic, Hungary, Poland, Romania, the Soviet Union and Yugoslavia (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (82) 291
Vol. 1982/0109
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 ---pagebreak---    COMMISSION OF/THE EUROPEAN COMMUNITIES
                                                            COM(82)291 final.
                                                            Brussels , 18 May 1982
                                       Proposal for a
                                      COUNCIL DECISION
         terminating the anti-dumping proceeding concerning imports of certain
                                                          Ν
         refrigerators originating in Czechoslovakia , the German Democratic
         Republic , Hungary , Poland , Romania , the Soviet Union and Yugoslavia
                                                                 I V"
                       ( submitted to the Council by the Commission ^,
                                                          , r>-.
C0MC82 ) 291 final .
 ---pagebreak---                                                         2- 2 -1
                          EXPLANATORY MEMORANDUM
1.   In March 1981 the Commission initiated an anti-dumping proceeding
against imports of certa/in ref rigerators from Czechoslovakia , the German
                                                                              1
Democratic Repub I ic > (-Hungary , Poland , Romania , the USSR and Yugoslavia .
2.   The Commission 's investigation has established the existence of dumping
margins during the year ended 30 June 1981 ranging from 7% to 74%
( depending on the type and size of refrigerator and the exporting country ).
In determining these dumping margins , the Commission took as normal value
the weighted average ex-fac,tory prices on the Yugoslav domestic market ,
adjusted as deemed appropriate for differences in physical characteristics .
3.   The Commission 's investigation also shows that imports of these dumped
refrigerators , through the increase in their share of the market and through
their undercutting of Community producer 's prices , have caused material
injury to those Community producers engaged in this sector of the market ,
whose market share , level of production and profitability have suffered
significant reverses .
4.   The exporters in all the countries concerned have voluntarily undertaken
to raise their prices to levels which the Commission considers adequate
to eliminate the margins of dumping or the injurious effects thereof .
5.   However , when the Advisory Committee was consulted on the acceptance
of these undertakings , opinions were divided as to whether protective
measures were called for .       The Commission has consequently decided to put
the issue before the Council by submitting , in accordance with Article 9(1 )
and 10(1 ) of Regulation ( EEC ) N° 3017/792, the attached proposal for the
termination of the proceedings on the basis of the acceptance of the
undertakings offered .
  0J N° C 162 , 02.07.1981 , p. 3
20J N° L 339, 31.12.1979, p'. 1
 ---pagebreak---                       PROPOSAL FOR A
                    COUNCIL      DECISION
                             terminating           ^ the anti-dumping proceeding
concerning imports of certain refrigerators originating in Czechoslovakia ,
the German Democratic Republic , Hungary , Poland , Romania , the Soviet Union
and Yugoslavia
THE  COUNCIL    OF THJE '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 , and in particular Article 10 thereof .
Having regard to the proposal submitted by the Commission after consultations
within the Advisory Committee set up under that Regulation ,
Whereas in March 1981 the Commission received a complaint lodged by
Conseil Europeen de la Construction Electrodomestique ( CECED ) on behalf of
the great majori^/'of Community manufacturers of certain refrigerators;
whereas the complaint contained evidence of the existence of dumping in
respect of like products originating in Czechoslovakia , the German
Democratic Republic , Hungary , Poland , Romania , the Soviet Union and Yugoslavia
and of material injury resulting therefrom ;
Whereas the said evidence was sufficient to justify initiating an
                        «                                 * .
investigation ;
Whereas the Commission accordingly announced , by a notice published in the
                                                2
Official Journal of the European Communities , the initiation of a proceeding
concerning imports of certain refrigerators originating in Czechoslovakia ,
the German Democratic Republic , Hungary , Poland , Romania , the Soviet Union and
Yugoslavia and commenced an investigation of the matter at Community level ;
 0J No L 339 , 31.12.1979, p . 1
20J No C 162, 02.07.1981 , p . 3
 ---pagebreak---             Whereas the Commission officially so advised the exporters and importers
            known to be concerned ;
DJ'L 19     Whereas the Commission has given the parties directly concerned the
27.1.1982   opportunity to make known their views in writing and to be heard orally ;
            Whereas the majority of the parties concerned have taken this opportunity ;
            Whereas , in order to make an assessment of the dumping margin and injury ,
            the Commission sought and verified all information it deemed to be
            necessary and carried out investigations at the premises of the only Yugoslav
            producer and exporter c6-operating in the enquiry , Gorenje ( Valenje ) and the
                                                 3                                    .
  following importers : in Belgium:Asogem NV and Artsel NV; in Denmark : Gorenje
            Skandinavien ApS ; in the Federal Republic of Germany : IVG Bulka-Lehel GmbH ;
            in France : Garelly SA , Generale Sidex SA and Sideme SA ; in Greece :
            Gorenje Helias Co , Ltd ; in Ireland : Electro-Diesel Ireland Ltd ;
                                             and in the United Kingdom : Astral Domestic
            Equipment Ltd , Curry 's Ltd , Technical & Optical Equipment ( London ) Ltd and
            USC ( Consumer Products ) Ltd ; whereas the Commission also carried out
            investigations at the premises of almost all          the complainant EEC producers ,
            including : in the Federal Republic of Germany : Bauknecht GmbH ;
                                  in , France : Thomson-Brandt SA ; in Greece : Elinda SA ;
            in Italy : Iberna SpA , Kelly Italia SpA , Merloni Elettrodomesti ci SpA ,
            Pargest SpA , Philips SpA , Siltal Casa SpA and Industrie Zanussi SpA ; and
            in the United Kingdom : Electrolux Ltd , LEC Refrigeration Ltd and Thorn
            Domestic Appliances ( Electrical ) Ltd ;
            Whereas the Commission selected as the investigation period the year ended
            30 June 1981 ;
            Whereas , in order to establish whether the Yugoslav imports were dumped ,
            the Commission used Yugoslav domestic prices to establish the normal value ;
 ---pagebreak---                                   - 3 -
  Whereas the Commission had to take into account the fact that Czechoslovakia ,
  the German Democratic Republic , Hungary , Poland , Romania and the Soviet Union
  are not market economy countires ;
  Whereas , for that reason , the Commission had to base its calculations in
  respect of these countries on the normal value in a market economy country ;
  whereas in that connection , the complaint had cited the Yugoslav domestic
  market ;                      '
  Whereas , in the course of the discussions with the exporters from Czechoslovakia ,
  the German Democratic Republic , Hungary , Poland , Romania and the Soviet Union ,
  the comparability of the Yugoslav market for refrigerators was contested
  because prices were said to be unrepresentative ; whereas Turkey , Spain
  and Brazil were suggested as alternatives but were not considered reasonable
  because of differences in market situations ; whereas in the light of the
  inspection carried out at the premises of the Yugoslav producer
!
  it would appear reasonable to use the Yugoslav       domestic price as an
  analogue normal value since the manufacturing processes , technical standards
  and technology are similar to those used by the other exporters concerned ;
  Whereas the assessment of dumping for all seven countries was accordingly
  made by comparing weighted average Yugoslav domestic prices at an ex-factory
  level with export priced/ to the Community at the same level from
  each country in question during the investigation period ;
  Whereas , to take due account of the differences affecting price comparability ,
  discounts and sales and service costs borne by the Yugoslav manufacturer
  were deducted from its domestic prices ; whereas for all the exporting countries
  concerned account was also taken of differences in physical characteristics
  where appropriate , such as volume , freezing capacity and type of
  defrosting system , the allowance being based on the estimated production
  costs accounting for such differences ; whereas allowances were also made for
  differences in conditions of payment and for transport and associated costs
  to the Community frontier ; whereas allowances for differences in advertising
  and sales promotion costs and research and development costs claimed by the
 ---pagebreak---                              - 4 -
Yugoslav exporter were not allowed since the Commission considered that
they were not directly related to the sales of the refrigerators in question
whereas the following
                                        adequate
claims were also not allowed because no'proof justifying them was given :
allowances for design differences claimed by exporters from the German
Democratic Republic and Poland , allowances for differences in packaging
and differences in measurements claimed by exporters from the German
Democratic Republic , allowances for differences in the market value of
free-standing versus table-top refrigerators claimed by Hungarian
exporters ; whereas claims for, differences in compressors used by Hungarian and
Polish exporters were not taken into account because it was considered
that these did not represent a difference in the physical characteristics
of the refrigerators concerned which is perceivable to the purchaser and
which would influence his chdice;               1
 ---pagebreak---                               - 5 -
Whereas the comparisons showed the existence of clumping in respect of the
imports considered in the investigation , the dumpi ng margins bei ng equal to
the amount by which the normal values as established above exceeded the prices
at which the goods were exported to the Community ; whereas the margins varied
depending on the type and size of refrigerator and the exporting country ;
whereas    the margins ranged from 7.4% to 74.2% of the export prices free at
Community frontier , duty urfpaid ;
Whereas , with regard to the injury caused to the Community industry , the
evidence available to the Commission shows that imports into the Community
of the refrigerators in question originating in the countries covered by
the investigation rose from approximately 511 000 units in 1978 to 717 000
units in 1980 ; Whereas imports into those Member States for whi ch statisti cs are
available for the first nine months of 1981 amounted to 498 043 units compared
with 475 756 units imported into the same Member States during the complete
year in 1978 ;                 ,
Whereas in 1978 the market share held by such imports in the Community was
15.8% , rising to 20.3% in 1980 and it is estimated to ha »» remained at
approximately the same level in 1981 ; Whereas vi rtually all of these imports during
the investigation period have been made at dumped prices ;
Whereas the resale prices in the Community of these refrigerators
originating in the countries in question undercut those of like products
produced by Community manufacturers by approximately 20% on average ;
Whereas the consequent impact on the Community industry , whose volume of
production has fallen by 10% from 3 559 000 units in 1978 to 3 236 000 units
    and has remained static in' 1981 ,
in 1980 / is characterized by a reduction in the market share of Community
producers and a depression of prices or the prevention of price increases
which otherwise would have occurred , making it impossible to cover
production costs or achieve a reasonable profit on the refrigerators in
question ; Whereas  all Community producers have experienced considerable
increases in stocks of refrigerators held during the period under
consideration ;
Whereas most of the Community producers are consequently making losses or
inadequate profits on sales of the refrigerators covered by the proceedings ;
 ---pagebreak---                                               - 6 -
              Whereas the Commission has considered whether injury has been caused by
              other factors such as competition between Community producers , changes
              in consumption patterns , overcapacity in the Community industry or imports
              from other countries ; whereas the market share in the Community of the
              producers of one of the Member States has increased slightly during the
                                      but
              investigation period/ it has been established that this increase is
              insignificant in size and that selling prices have been in excess of those
              of the dumped imports ; Whereas consumption in the Community has increased between 1978
              and 1980 whilst production within the Community and imports from other non-EEC
              sources have both decreased during the same period ; whereas , therefore , the sub­
              stantial increase in dumped imports and the extremely low prices at which they
         have been offered for sale in the Community has led the Commission to determine
                                                j
              that the dumped imports, taken in isolation , have caused material injury to
              the Community industry concerned ;
              Whereas the Commission , after having examined the Community producers' and
0J L 113/ 71
1.5.1980
              importers' prices , costs and profitability and marketing conditions , has
              determined the import prices necessary to eliminate the injury caused;
                                    ι
              Whereas the exporters and importers concerned were informed of the main
              findings of the preliminary investigation and commented on them ; whereas
              undertakings were consequently offered concerning imports from Czechoslovakia ,
              the German Oemocra,tic Republic , Hungary, Poland , Romania , the Soviet Union and
              Yugoslavia which would prevent a recurrence of injury to Community producers ;
                         proposed         in prices
              Whereas the   /   increases / take account of the differences noted in the
 0J L 113/ 71 course of investigations in the prices charged by the various exporting
 1.5.1980
              countries ; whereas these increases never exceed the average dumping margins
              and are generally below this level ;
                                  I
              Whereas the Yugoslav exporter concerned requested the continuation of the
              investigation into injury ; Whereas , however , the Commission considers that both the
              dumping and injury investigation have been completed and that the afore­
              mentioned undertakings are acceptable;Whereas , notwithstanding this fact .
 ---pagebreak--- during the consultations within the Advisory Committee one of
the Member States objected to the termination of the proceedings by the
acceptance of these undertakings ;
HAS  DECIDED AS  FOLLOWS :
                              Sole Article
The anti-dumping proceeding concerning imports of certain refrigerators
originating in Czechoslovakia , the German Democratic Republic , Hungary ,
Poland , Romania ,. the Soviet Union and Yugoslavia is hereby terminated on
basis of the acceptance of price undertakings offered to the Commission
by the exporters concerned .
Done at Brussels ,                         For the Council