CELEX: 51990PC0010
Language: en
Date: 1990-01-26
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) REPEALING REGULATIONS ( EEC ) NO 1826/84 AND NO 1282/81 IMPOSING DEFINITIVE ANTI-DUMPING DUTIES ON IMPORTS OF VINYL ACETATE MONOMER ORIGINATING IN CANADA OR IN THE UNITED STATES OF AMERICA

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 C0MC90) 10 final
                                                 Brussels, 26 January 1990
                             Proposal for a
                        COUNCIL REGULATION (EEC)
                repealing Regulations (EEC) No 1826/84
  and No 1282/81 imposing definitive anti-dumping duties on imports
        of vinyl acetate monomer originating in Canada or in
                     the United States of America
                     (presented by the Commission)
 ---pagebreak---                                                                     Cja^n **
                                                                             f
                         EXPLANATORY MEMORANDUM
1. A definitive anti dumping duty was imposed on imports of vinyl
   acetate monomer (VAM) originating in Canada by Council Regulation
    (EEC) No 1826/841 and was subsequently amended by Council
   Regulation (EEC) No 2879/872.
   A definitive ant I-dumping duty on imports of VAM originating in the
   USA was imposed by Council Regulation (EEC) No 1282/813 and
   amended by Council Regulation (EEC) No 2357/87 4 .
2.  In November 1988 the Commission received a request lodged on behalf
   of Quantum Chemical Corporation, a US producer/exporter, for a
   review of the anti-dumping measures.
   In view of the allegations made by the US producer/exporter and the
   consequent possibility that exports of VAM originating in Canada
   were also no longer being dumped or causing injury to the Community
   industry, the Commission considered It appropriate to extend the
   review to include imports of VAM originating in Canada to ensure
   that the duty would remain in force only to the extent necessary to
   counteract dumping which Is causing injury.
3. The Commission announced by a notice in the Official Journal of the
   European Communities5 the initiation of a review of ant I-dumping
   measures concerning imports into the Community of vinyl acetate
   monomer originating in Canada and the United States of America and
   commenced an investigation.
1  OJ No L 170, 29.06.1984, p. 70.
2  OJ No L 275, 29.09.1987, p.    1.
3  OJ No L 129, 15.05.1981, p.    1.
4  OJ No L 213, 04.08.1987, p. 32.
5  OJ No C 105, 25.04.1989 p.   3
                                                                               I
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4. Normal value, which was established on a weighted average basis for
   each of the producers' domestic sales of VAM and in one case on the
   basis of the highest domestic price of another producer, was
   compared with the export prices on a transact ion-by-transact ion
   basis.   On this basis no dumping was found.
5. In the light of the above findings, it is concluded that in the
   absence of dumping this review proceeding should be terminated and
   the ant I-dumping duties referred to above  should be repealed.
                                                                       3
 ---pagebreak---                            COUNCIL REGULATION (EEC)
 repealing Regulations (EEC) No 1826/84 and No 1282/81 imposing definitive
 anti-dumping duties on imports of vinyl acetate monomer originating in
 Canada or 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 2423/88 of 11 July 1988 on
protection against dumped or subsidized imports from countries not members
of the European Economic Community1, and In particular Articles 9 and 14
thereof,
Having regard to the proposal submitted by the Commission after
consultations within the Advisory Committee as provided for under the above
Regulation,
WHEREAS:
                                  A. PROCEDURE
(1)   A definitive anti dumping duty was imposed on imports of vinyl acetate
      monomer (VAM) originating In Canada by Council Regulation (EEC)
      No 1826/842 and was subsequently amended by Rtcjuiit ion d T O
      No 2879/87 3 .
      A definitive anti-dumping duty on imports of VAM originating in the
      USA was imposed by Council Regulation (EEC) No 1282/81 4 and amended
      by    Regulation (EEC) No 2357/87 5 .
1        OJ  No L 209, 02.08.1988, p. 1.
2        OJ  No L 170, 29.06.1984, p. 70.
3        OJ  No L 275, 29.09.1987, p. 1.
4        OJ  No L 129, 15.05.1981, p. 1.
5        OJ  No L 213, 04.08.1987, p. 32.
                                                                             A
 ---pagebreak---                                    - 2 -
     In November 1988 the Commission received a request lodged on behalf of
    Quantum Chemical Corporation, a US producer/exporter, for a review of
    the ant I-dumping measures applicable to Imports of VAM originating in
    the United States of America.
     In this request, based on Article 14 of Regulation (EEC)
    No 2423/88, it was claimed that dumping was no longer talcing place and
    that the imports of VAM from the USA had ceased to cause injury to the
    Community Industry.   The Commission considered that there was
    sufficient evidence to warrant a review of the measures.
     In view of the allegations made by the US producer/exporter and the
    consequent possibility that exports of VAM originating in Canada were
    also no longer being dumped or causing injury to the Community
     industry, the Commission considered it appropriate to extend the
    review to include imports of VAM originating in Canada to ensure that
    the duty would remain in force only to the extent necessary to
    counteract dumping which is causing injury.
(2) The Commission, accordingly, announced by a notice IIn the Official
    Journal of the European Communities 6 the initiation of a review of
    anti-dumping measures concerning imports into the Commun ity of vinyl
    acetate monomer originating in Canada and the United States of Amer ica
    and commenced an investigation.
(3) The Commission officially so advised the exporters and importers known
    to be concerned, the representatives of the exporting country and the
    complainants, and gave the parties directly concernée! the opportunity
    to make known their views In writing and to request a hearing.
    The Conseil Européen des Fédérations de rIndustrle Chimique (CEFIC),
    the Community producers of VAM, most e x p o r t e r s and
    some importers made their views known in writing.      CEFIC and some
    importers requested and were granted hearings.
       OJ No C 105, 25.04.1989 p.  3
                                                                            $
 ---pagebreak---                                    - 3 -
    One of the largest free market consumers of VAM in the Community made
     Its views known In writing and requested and was granted a hearing.
(4) The Commission sought and verified all information it deemed to be
    necessary for the purpose of its determination and carried out
     Investigations at the premises of the following companies:
    Co—unity producers:
         BP Chemicals Ltd, London, UK
         Montedipe Sri, Milano, Italy
         Wacker Chemie GmbH, Munich, Germany
         Rhône Poulenc SA, Paris, France
    CanadIan producer/exporter :
         Celanese Canada Inc, Toronto, Canada
    US producers/exporters:
         Hoechst Celanese Chemical Group, Dallas, USA
         Quantum Chemical Corporation, Cincinnati, USA
    Importers related to an exporter:
         Quantum Chemical Europe BV, Bave I, Holland
         Hoechst Celanese NV, Brussels, Belgium
(5) The Investigation of dumping covered the period from October 1988 to
    March 1989 Inclusive.
                                                                          C
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                                B.  QUJMpjUfi
(I) Normal value
(6)      Normal value was established for all producers/exporters involved
         in the proceeding on the basis of the weighted average domestic
        price of sales to Independent customers.     These prices were net of
        all discounts and rebates directly related to the sales of VAM.
         It was also established that domestic sales of the companies
         investigated In Canada and the USA were profitable.
        One exporter, however, did not provide details on Its
        profitability of domestic sales.     The Commission considered that
        the data concerning profitability constituted an essential part of
        the Information needed and therefore informed the company that in
        the absence of such Information normal value would be established
        on the basis of the facts available in accordance with Article
        7(7)(b) of Regulation (EEC) No 2423/88.     In this connection the
        Commission considered that the results of its investigation
        provided the most appropriate basis for determination of normal
        value and established normal value on the basis of the highest
        weighted average domestic price found for the exporters which did
        fulI y cooperate.
d o Export price
(7) With regard to exports by Canadian and US producers/exporters 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.
    When exports to the Community were made to subsidiary companies, 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
                                                                              7
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     Independent buyer.  Discounts and rebates were, where appropriate,
    deducted from the price to the first independent buyer.     Suitable
    adjustments were made to take account of all costs incurred between
     Importation and resale plus a 5% profit on sales turnover.
    One related importer disagreed with the rate of profit used by the
    Commission.   However, the Council considered that 5% was a minimum
    profit required for an independent importer of a chemical product like
    VAM.   Moreover a 5% profit had also been used during the previous
    review proceeding.
    Where cost allocations were necessary In constructing export prices
    these were made on the basis of turnover.   The costs and turnover used
    for this purpose were generally those of the related Importers' last
    available financial year and accordingly based on audited accounts.
                               C.  COMPARISON
(8) For the purpose of a fair comparison between normal value and export
    price and In accordance with Article 2(9) and (10) of Regulation (EEC)
    No 2423/88, the Council took account of differences affecting price
    comparability, such as differences In terms of sale, 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 transport, insurance, handling and
    ancillary costs, credit terms, commissions and salaries paid to
    salesmen.   All comparisons were made at ex-works level.
                            D.  DUMPING MARGINS
(9) Normal value, which was establIshed on a weighted average basis for
    each of the producers' domestic sales of VAM and In one case on the
    basis of the highest domestic price of another producer, was compared
    with the export prices on a transact ion-by-transact Ion basis.   The
    examination of the facts showed that export prices exceeded normal
    value for every exporter Investigated In both Canada and the United
    States of America.
 ---pagebreak---                                       - 6-
                                   E.   INJURY
 (10) In view of the above findings with respect to dumping it is considered
      unnecessary to deal with the issue of injury.
                                F.   TERMINATION
 (11) In the light of the above findings, it is concluded that in the
      absence of dumping, this review proceeding should be terminated and
      the ant I-dumping duties referred to under recital 1 should be
      repealed.
      The Community producers concerned were informed of the essential facts
      and considerations on the basis of which it was intended to terminate
      the review proceeding and were given the opportunity to comment.   The
      industry considered that the situation prevalent during the
      investigation period was abnormal since prices in the market had
      increased abnormally following a shortage of raw materials and,
      consequently, of VAM.   It was claimed that, once the shortage was
      eliminated from the market, this would lead to a recurrence of dumping
      and injury.   The industry suggested therefore that the measures remain
      In force.
     After giving due consideration to the objections raised by the
      industry, however, it Is concluded that in the absence of any dumping
      throughout the Investigation period the proceeding should be
      terminated and the ant I-dumping measures repealed.
(12) No objections to the termination of this proceeding were raised In the
     Advisory Committee.
HAS ADOPTED THIS REGULATION:
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                                 Article 1
Regulations (EEC) No 1826/84 and No 1282/81 are hereby repealed.
                                 Article 2
The anti-dumping proceedings concerning Imports of vinyl acetate monomer
originating In Canada and the United States of America and falling under CN
code 2915 32 00 are hereby terminated.
                                 Article 3
This Regulation shall enter Into force 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
a 11 Member States.
Done at Brussels,                           For the Council
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