CELEX: 52005PC0541
Language: en
Date: 2005-12-23
Title: Proposal for a Council Regulation amending Regulation (EC) No 1858/2005 imposing a definitive anti-dumping duty on imports of steel ropes and cables originating, inter alia, in India

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    Brussels, 23.12.2005
                                                    COM(2005) 541 final
                                       Proposal for a
                               COUNCIL REGULATION
   amending Regulation (EC) No 1858/2005 imposing a definitive anti-dumping duty on
            imports of steel ropes and cables originating, inter alia, in India
                              (presented by the Commission)
EN                                                                                  EN
 ---pagebreak---                                EXPLANATORY MEMORANDUM
       1) CONTEXT OF THE PROPOSAL
          •
   110
              Grounds for and objectives of the proposal
          This proposal concerns the application of Council Regulation (EC) No 384/96 of 22
          December 1995 on protection against dumped imports from countries not members of
          the European Community, as last amended by Council Regulation (EC) No 461/2004
          of 8 March 2004 ('the basic Regulation') in the proceeding concerning imports of steel
          wire ropes originating, inter alia, in India.
          •
   120
              General context
          This proposal is made within the context of the implementation of the basic Regulation
          and is the result of enquiries carried out in line with the substantive and procedural
          requirements laid out in the basic Regulation.
          •
   130
              Existing provisions in the area of the proposal
          By Regulation (EC) No 1796/1999, the Council imposed definitive anti-dumping
          measures on, inter alia, steel wire ropes originating, inter alia, in India. In parallel, by
          Decision 1999/572/EC, the Commission accepted an undertaking from, inter alia, a
          company in India. By Regulation (EC) No 1858/2005 decided that the anti-dumping
          measures applicable to imports of the product concerned originating, inter alia, in India
          should be maintained.
          •
   141
              Consistency with other policies and objectives of the Union
          Not applicable.
       2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
          •   Consultation of interested parties
   219
          The interested party concerned has already had the possibility to defend its interests, in
          line with the provisions of the basic Regulation.
          •   Collection and use of expertise
   229
          There was no need for external expertise.
          •
   230
              Impact assessment
          This proposal is the result of the implementation of the basic Regulation.
          The basic Regulation does not foresee a general impact assessment for the
          circumstances surrounding the present proposal.
EN                                                  2                                                  EN
 ---pagebreak---        3) LEGAL ELEMENTS OF THE PROPOSAL
   305    •   Summary of the proposed action
          By Regulation (EC) No 1858/2005, the Council imposed definitive anti-dumping
          duties on imports of steel wire ropes originating, inter alia, in India. The exception is
          where this product is exported by the Indian company Usha Belton Ltd (now known as
          Usha Martin Ltd) from which the Commission, by Decision 1999/572/EC, has
          accepted a price undertaking.
          This company has now been found to have breached its undertaking therefore the
          Commission has withdrawn acceptance thereof.
          In view of this, it is also necessary to amend Regulation (EC) No 1858/2005 so as to
          remove the exemption to the anti-dumping duties currently enjoyed by the company.
          •
   310
              Legal basis
          Council Regulation (EC) No 384/96 of 22 December 1995 on protection against
          dumped imports from countries not members of the European Community, as last
          amended by Council Regulation (EC) No 461/2004 of 8 March 2004.
          •
   329
              Subsidiarity principle
          The proposal falls under the exclusive competence of the Community. The subsidiarity
          principle therefore does not apply.
          Proportionality principle
   331
          The proposal complies with the proportionality principle for the following reasons.
          The form of action is described in the above-mentioned basic Regulation and leaves no
          scope for national decision.
   332
          Indication of how financial and administrative burden falling upon the Community,
          national governments, regional and local authorities, economic operators and citizens is
          minimized and proportionate to the objective of the proposal is not applicable.
          •   Choice of instruments
   341
          Proposed instruments: Regulation.
   342
          Other means would not be adequate for the following reason(s).
          Other means would not be adequate because the basic Regulation does not foresee
          alternative options.
       4) BUDGETARY IMPLICATION
   409
          The proposal has no implication for the Community budget.
EN                                                 3                                                EN
 ---pagebreak---                                                Proposal for a
                                        COUNCIL REGULATION
     amending Regulation (EC) No 1858/2005 imposing a definitive anti-dumping duty on
                  imports of steel ropes and cables originating, inter alia, in India
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community,
   Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection
   against dumped imports from countries not members of the European Community1 (the ‘basic
   Regulation’), and in particular Articles 8 and 9 thereof,
   Having regard to the proposal submitted by the Commission after consulting the Advisory
   Committee,
   Whereas:
                                     A.    PREVIOUS PROCEDURE
   (1)    In August 1999, by Regulation (EC) No 1796/19992, the Council imposed a definitive
          anti-dumping duty on imports of steel ropes and cables (‘the product concerned’)
          originating, inter alia, in India.
   (2)    In November 2005, following an expiry review pursuant to Article 11(2) of the basic
          Regulation, the Council, by Regulation (EC) No 1858/20053 decided that the anti-
          dumping measures applicable to imports of the product concerned originating, inter
          alia, in India should be maintained.
   (3)    By Decision 1999/572/EC4, the Commission accepted a price undertaking from an
          Indian company, i.e. Usha Martin Industries & Usha Beltron Ltd. This company has
          changed its name in the meantime and is now known as Usha Martin Ltd (‘UML’).
          The change of name in no way affected the activities of the company.
   (4)    As a result, imports into the Community of the product concerned of Indian origin,
          produced by UML or by any other related company worldwide, and of a type covered
          by the undertaking (‘the product covered by the undertaking’), were exempted from
          the definitive anti-dumping duties.
   1
           OJ L 56, 6.3.1996, p.1. Regulation as last amended by Regulation (EC) No 461/2004 (OJ L 77,
           13.3.2004, p.12.)
   2
           OJ L 217, 17.8.1999, p.1.
   3
           OJ L 299, 16.11.2005, p.1.
   4
           OJ L 217, 17.8.1999, p.63. Decision as last amended by Regulation (EC) No 1678/2003 (OJ L 238,
           25.9.2003, p.13.)
EN                                                      4                                                 EN
 ---pagebreak---    (5)  In this regard, it should be noted that certain types of steel wire rope currently
        produced by UML were not exported to the Community during the investigation
        period which led to the imposition of definitive anti-dumping measures and were not,
        therefore, within the scope of the exemption afforded by the undertaking. Accordingly,
        such steel wire ropes were liable to payment of the anti-dumping duty when entered
        for free circulation in the Community.
               B.      FAILURE TO COMPLY WITH THE UNDERTAKING
   (6)  The undertaking offered by UML obliges it (and any related company worldwide) to,
        inter alia, export the product covered by the undertaking to the first independent
        customer in the Community at or above certain minimum import price levels ("MIPs")
        laid down in the undertaking. These price levels eliminate the injurious effects of
        dumping. In the case of resales in the Community to the first independent customer by
        related importers, the resale prices of the product covered by the undertaking, after
        appropriate adjustments for selling, general and administrative costs and a reasonable
        profit, must also be at levels which eliminate the injurious effects of dumping.
   (7)  The terms of the undertaking also oblige UML to provide the Commission with
        regular and detailed information in the form of a quarterly report of its sales (and
        resales by its related parties in the Community) of the product concerned originating in
        India to the Community. Such reports are intended to include the products covered by
        the undertaking which benefit from the exemption to the anti-dumping duty as well as
        those types of steel wire ropes not covered by the undertaking and which are therefore
        liable to the anti-dumping duty.
   (8)  Unless otherwise indicated, it is assumed by the Commission that the sales reports of
        UML (and the reports of resales of related companies established in the Community)
        are, as submitted, complete, exhaustive and correct in all particulars.
   (9)  It was also acknowledged by UML that, with regard to the exemption to the anti-
        dumping duties afforded by the undertaking, such exemption is conditional upon
        presentation to Community customs services of an “Undertaking Invoice”. Moreover,
        the company undertook not to issue such Undertaking Invoices for sales of those types
        of the products concerned not covered by the undertaking and which are therefore
        liable to the anti-dumping duty.
   (10) It is also a condition of the undertaking that the terms and provisions thereof apply to
        any related company to UML, worldwide.
   (11) For the purposes of ensuring compliance with the undertaking, UML also agreed to
        provide all information considered necessary by the Commission and to allow on-spot
        verification visits at its premises, and those of any related companies, in order to verify
        the accuracy and veracity of data submitted in the said quarterly reports.
   (12) In this regard, verification visits were carried out at the premises of UML in India and
        at those of a related company to UML in Dubai, i.e. Brunton Wolf Wire Ropes FZE
        (‘BWWR’).
EN                                                 5                                                EN
 ---pagebreak---    (13) The verification visit to the Indian company showed that significant volumes of the
        product concerned not covered by the undertaking had been omitted from the quarterly
        undertaking sales reports submitted to the Commission. Furthermore, the goods in
        question had been sold by UML to its related importers in the UK and Denmark and
        included on Undertaking Invoices.
   (14) The verification visit to the Dubai company showed that certain steel wire ropes had
        been exported to the Community from Dubai and declared at import into the
        Community as having United Arab Emirates origin when in fact they were of Indian
        origin and therefore liable to the anti-dumping measures applicable to imports of steel
        wire ropes originating in India. The goods in question had not been reported on the
        quarterly undertaking sales report nor, as was admitted by the company, had anti-
        dumping duty been paid on them. The goods had also been resold to the first
        independent customer in the Community at prices below the MIPs.
   (15) Commission Decision (EC) No 2005/…./EC5 sets out in more detail the nature of the
        breaches found.
   (16) In view of these breaches, acceptance of the undertaking offered by Usha Martin
        Industries & Usha Beltron Ltd, now known as Usha Martin Ltd (Taric additional code
        A024) has been withdrawn by Commission Decision (EC) No 2005/…/EC. A
        definitive anti-dumping duty should therefore be imposed forthwith on imports of the
        product concerned exported to the Community by the company concerned.
   (17) In accordance with Article 8(9) of the basic Regulation, the rate of the anti-dumping
        duty must be established on the basis of the facts established within the context of the
        investigation which led to the undertaking. As the investigation in question was
        concluded by a final determination as to dumping and resulting injury by Regulation
        (EC) No 1796/1999 and as these measures were maintained by Regulation (EC) No
        1858/2005, it is considered appropriate that the definitive anti-dumping rate is set at
        the level and in the form imposed by these Regulations, namely 23,8% of the net, CIF
        free-at-Community-frontier price, before duty.
               C.      AMENDMENT OF REGULATION (EC) No 1858/2005
   (18) In view of the above, Regulation (EC) No 1858/2005 should be amended accordingly.
   HAS ADOPTED THIS REGULATION:
   5
        …..
EN                                               6                                               EN
 ---pagebreak---                                                Article 1
   The table in Article 2(1) of Regulation (EC) No 1858/2005 shall be replaced by the following
   table:
          Country                     Company                      TARIC
                                                                  additional
                                                                     code
   South Africa           Haggie                                    A023
                          Lower Germiston Road
                          Jupiter
                          PO Box 40072
                          Cleveland
                          South Africa
                                               Article 2
   This Regulation shall enter into force on the day following that of its publication in the
   Official Journal of the European Union.
   This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels,
                                                 For the Council
                                                 The President
EN                                                 7                                              EN