CELEX: 51988PC0256
Language: en
Date: 1988-05-04
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of potassium permanganate originating in the People's Republic of China and definitively collecting the provisional anti-dumping duty imposed on those imports (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 256
Vol. 1988/0081
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier
ont été déclassifiés conformément à l'article 5 dudit règlement ou sont considérés déclassifiés
conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
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 last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
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, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                           COM(88 ) 256 final
                                                                           Brussels , 4 May 1988
                                             «•
                                                   «
                                          ^>    y»
                                                     co
                                                     O
                                        Proposal        for a
                        V
                              COUNCIL L REI             REGULATION ( EEC )
                                  COUNCIL
imposing a def initive anti-dumping duty on imports of potassium permanganate
                                  dumping
  originating in the                                 of China and definitively collecting
          the provisional anti-dumping duty imposed on those imports
                           (presented by the Commission )
 ---pagebreak---                                       шхшшш
(1 ) Coramissian Regulation (ESC) No 380/66 imposed a provisional anti¬
     dumping duty on Imports of potassium permanganate originating in
     the People 's Republio of China .
(2)  Since the provisional duty was imposed , the Commission has extended
     its inquiries concerning normal value and injury .
(3)  As regards dumping , the definitive normal value was determined by
     reference to the prioes charged on the domestic market of a market-
     economy country , in this case the United States . The weighted
     average dumping margin during the investigation period (1967) was
     30% .
CO   As regards injury , the selling prices of the imports in question
     during the period covered by the investigation undercut by 20% the
     prices charged by the Camualty producer . These imports contributed
     not only to a general and continued fall in price© on the Community
     market , but also to a fall in Community production , a reduction in
     capacity utilization and increased costs as a result .
(5)  A duty of 20% ia necessary to eliminate the price undercutting
     margin . In addition , the ad mLoraa duty imposed must be
     supplemented by a variable duty in order to guarantee the Community
     producer an adequate profit on sales , ensure that the measures are
     effective aid. prevent any evasion . Consequently , the proposed
     definitive duty must be equal either to the amount by which the net
     free-at-OOTiunity^frontier price before duty to the first Community
     importer falls below 2.25 ECU’ per kilogramme , or to 20% of that
     prioe , whichever is the higher .
 ---pagebreak---                                   Proposal for a
                            COUNCIL REGULATION ( EEC )
        imposing a definitive aatl-dumping duty on imports of
permanganate originating in tha People 's Rapubllo of Ciiina       daf.lr£.-Llv\ly
oollaotlng -Che provisional anti-dumping duty iirrpCEtd on those iLiiporta
THE QOONGHi OP THE EÜROPEAN OCMOŒTIES ,
Having regard to the Treaty establishing the European Eooncuaio Community ,
Having regard to Council Regulation (EEC) No 2176/84 of 23 July 1S64 on
protection against dumped or subsidized imports from oountrlea not msmbars
of the European Economic Community , 1 as amended by Regulation (EEC) No
1761 / 87^, and in particular Article 12 thereof ,
Having regard to the proposal from the Commission , submitted after
consultation within the Advisory Committee as provided for by the
abovementioned Regulation ,
Whereas :
                                      A. Procedure
(1 )      Following a complaint lodged by the European Council of Chemical
          Manufacturers' Federations (E0CMF) on behalf of a Community
          producer whose output represents the entire Community production of
          potassium permanganate , the Commission published a notice in the
          Official Journal of the European Communities® announcing tha
          Initiation of an anti-dumping proceeding concerning imports into
          the Community of potassium permanganate falling within Coupon
          Customs Tariff subheading ex 28.47 C and corresponding from
          1 January 1988 to CN code ex 2841 60 00 , originating in
          Czechoslovakia , the German Democratic Republic or the People 's
          Republic of China , and opened an investigation .
1 GJ Nû L 201 , S0.7.1GÔ4 , p.l .
2 OJ L 167 , 23.6.1087 , p.9 .
3 OJ C 05 , 18 . 3 . 1086 , p.5 .
 ---pagebreak--- (2)      Following the investigation , which established the existence of dumping
                      4
         and injury , the Chinese exporter - China National Chemicals Import and
         Export Corporation ( Sinochem ) - and the exporters from Czechoslovakia
        and the German Democratic Republic offered price undertakings .
( 3)    Under the terms of the undertaking by the Chinese exporter , the above-
        mentioned firm undertook to increase its export price by an amount
         considered sufficient to eliminate the injury caused by dumping . This
        undertaking was accepted by the Commission^. By Regulation ( EEC) No
        3661 /86^ the Council had imposed a definitive anti-dumping duty on
         imports of the product not exported by Sinochem .
        B.   Violation of the undertaking and reopening of the proceeding
(4 )    The Commission, having received a complaint from the Community manu¬
        facturer alleging that potassium permanganate manufactured and / or
        exported by Sinochem was again being imported into the Community market
        at very low prices , which indicated that the price undertaking was
        being violated and resulted in material injury to the Community manu¬
        facturer, withdrew its acceptance of the abovementioned undertaking by
                                                                             7
        the Chinese exporter , reimposed a provisional anti-dumping duty       and
        decided to reopen the anti-dumping proceeding concerning imports of
                                                                                   8
        potassium permanganate originating in the People 's Republic of China .
                                    C.   Investigation
(5)     The Commission officially informed the exporters and importers known
        to be concerned , the representatives of the exporting country and the
        Community manufacturer of the reopening of the proceeding .
4 Commission Régulation ( EEC ) No 2495 /86, OJ No L 217, 5.8.1986, p. 12 .
5 Decisión 86 / 589 / EEC , OJ No L 339, 2.12.1986 , p . 32 .
6 OJ No L 339, 2.12.1986, p. 1 .
7 Commission Régulation ( EEC ) No 360/ 88 , OJ No L 35 , 9.2.1988 , p. 13 .
8 OJ No C 37, 9.2.1988, p. 3 .
 ---pagebreak---                                   - s ~
    Tb/o Onnroissdon Jiira the p-vties directly C'Wmi thr oppcttiilty
    to anspflsr tbs <p3Stdo«n&ir<8S addr&as&d to than , to •Li _, –,-I.iji t-iui Jjty} ’, ,^ll •'. :ir
    vlewa In vritlag &?d to raquast a hsarteg .
(3) Tli® CoowKaalty manufacturor aad two importers return*! the duly
    completed questlormlra to the Ccmmdsslon 6M made known their
    views in writing . Two importers answered that thsy no longer
    marketed the product in question .
(7) The Chinsse exporter did not reply to the questionnaire , ai'i&ough
    the Gatimission repeated in writing its request for it -to b3
    returned , duly complete! , within the period laid down . However , the
    reporter proposed to the Ocatnalsslon that the previous urdgrtaking ,
    wbldh. had been violated end acceptance of which had fcssn withdrawn
    by Commission Regulation (BBC) No 330/68 , Should be adapted .
    Therefore , as regards parties which, did not reply to the
    questionnaire or make their views known in any other way , findings
    wars msde on the basis of the available facts (Article 7(7) (b) of
    Regulation (ESC) No 8176/84), in this ease the invoices presented
    by the national customs authorities or obtained from the Community
    manufacturers and/or importers and official national and Community
    statistics .
(3) The Commission gathered and, verified all the information it desmed
    necessary and carried out Investigations at the premises of the
    Community manufacturer - Astuiquimlca S.A. , Oviedo , Spain - and at
    the Cams Chemical Company , La Salle , Illinois , USA , which had boon
    chosen for reference purposes in calculating normal value .
    The Commission requested detailed written ocMissats from tins
    C;;rai.nity manufacturer , the Chinese eagportera and the importers
    toowa to be ooncerasd , ard verified the information 'dais obtained
    as it considered necessary .
(9) The Omission's investigation oovsred tbs calendar year 1837 .
                                                                                                      J­
 ---pagebreak---                                      - 4 -
                                  D. Doping
( 10)    to errtefelishtog tea ©dstsnoa of dumped imports from tea People 's
         RswJblio of China , tea Commission had to 'taka aooount of tea fact
         that China is not a msr&at economy country aid tearaiore had to
         hs^e its calculations on tbs normal vain® of tea product to &
         market economy country , Sines for tea previous proceeding to©
         United States bad hzm dhoson as reference country , tee Cavstosion ,
         in egr©®aat with tea OeMunifcy industry , OOosidsrsd teat tea basis
         for comparison Should ococ® egato ba tea selling price of 'tea
         product on tea United Stated lesrSsst . The Chtoasa ©sporty did not
         oppose this choice .
  ( 11 ) lbs Commission verified that there is no quality difference between
         tea product memte/Jterai to tea united States and teat produced by
         the e^porttof country concerns! s there are no price controls to tee
         United States and thore ia sufficient competition as a result of
         substantial Imports from third countries i to addition it was
         verified that tee US manufacturer 's prices allow a reasonable and
         not excessive profit Kargin .
0,2)     As a result , norm! value was calculated on the basis of tee prices
         Charged on tee united States domestic market , as determined by tee
         Commission .
( 13)    Kzport prices were determined on the basis of tee prices actually
         paid or payable for the products sold for export to tee Comunity .
(14)     in comparing normal value with export prices the Camoisalon took
         account , where circumstances permitted, and where there was
         sufficient evidence , o? differences affecting price comparability ,
         in particular difference® to delivery fiM payment terms . All
         comparisons were m&ie at ees-works level .
                                                                             c
 ---pagebreak--- (      dlw.'y Or1i-G:3£',n-jC'n tL-U^si VGS5 XGiXC'-iiKG G'.t 'XaiX.,'L ' :rv [ X. C':'s ly ’G.-i
       Orv-vaiUnit'f 'hudng tbs rt&PGTSDOS polled . Ere eSmubg ;■?:.,rgin ,
       ocinoUtyd oif &t CorasRifflitY frontier , bsforo duty, varies accordf.?!
       to the importing Msmbar stats , with a weighted ajveregs of SOS .
                                            I. йфгу
( 16)  The xv^denoe available to the Commission Shews that imports into
       +?b» C<Bimun±tY Of potassium permanganate originating in tha People 's
       ^public of China rosa fran 1 650 tomes in 1936 to 1 830 tomes in
       103? , increasing the ©sporting country ' s $har© of tha Ccsmuuoity
       market from 43% to 47% over tha earn® period . These driports wars
       COTomtratad in parti,oulax on tha irarkets of Germany , Franca aid
       tha Benelux countries , yhidh alone account for almost 75% of tha
       volume of imports from China .
( 1?)  The Commission studied the selling prices in tha Caruffimity of
       potasslm parroangan&te originating in tha People 's Republic of
       GMm, and established that thair weighted avsrsge                                    SC% icwix
       -San tl’Gt of the CORimnity industry during tha purled ocvar&i by
       tha investigation , a&d was insufficient to allow the Cor.aaizf.iy
       prcdneir a reasonable profit . It should ha added tb&t Quidjsi.3
       aborts are all the more liisly to go to the C&asitfity sloes 11:^'
       ere subject to an anti-dumpirg duty of almost 4C% on import into
       the United States .
( 18 ) The investigation did Indeed dhow an increase in tha vtsiuue of
       ealas by the Spanish. manufacturer on the Gcroswaivy iJbriGti £>;ua 1C83
       to 193?. However , this Increase is only relative , since from 1923
       to 1933 the same mamfacturer had lost a OQBSi&ersbls. pdrt of ili
       ssaxiteat Share in the Ccaammity . Thus , ©OKrparM with i£;S , tio
       C^ffiBunity manufacturer 's market share laoreas&l oxly afclsrdtely In
       19S7 . m addition , tha Increase in its sales relied                                   ly £faa
                                                                                                   'f
 ---pagebreak---                                    - θ -
      a considerable reduction In the stodke which. the Bpamsli
      manuf®Otur@r ted b$m foi'C^d to build up previously as a result of
      dumped Imports into the Co;mmity . The Corrsaunlty maraifaoturer ,
      disinclined to maintain sudh a high level of stocks , which attract
      substantial storage costs , and forced to defend market Sh&r® in
      order to maintain -the company 's effioiaooy , w obliged by the
      imports of potassium pasmsragaaaate into the Caraceunity at vary low
      prices to sail its stetiks on ISa® Community market at priori lower
      than those needed to provide a reasonable profit . The defence of
      the Community manufacturer 's market share therefore involved
      considerable financial sacrifice .
(19)  As stools ted to bo disposed of , the slight rise in the Spanish
      manufacturer 's market share did not affect the level of Ccsraunity
      production , whidh continued to fall (from 1 760 tonnes in 1988 to
      1 380 tonnes in 1987) , leading to lower capacity utilisation
      (static at about 35% in, 1987) and a total belt to production for
      several months in 1987 .
(20)  The investigation also shewed that the Community marnfactasr made
      substantial i&vssstmsnts in 1985 , 1985 and 1S37 to me&girals® its
      plant , which is now considered one of the most efficient worldwide .
      This investment has not brought financial results due to the
      increase in overheads following the oontinual drop in production .
(21 ) The combined effects of lower selling prices , lower production end
      resultant higher costs have placed tbs GoiKnunity manufacturer In &
      continued precarious finemlal position .
(22)  The Commission investigated whether the injury had been caused by
      other factors sudh as changes in dj®rr&E& , a fan in Community
      exports or an increase in imports from other non-itismb®r countries .
      Demand rose substantially from IGS3 to 138? s however , this allowed
      the Gawsunity industry to dispose of no sore tea about SCO tosassa
      of the considerable gtooteii which it bad aooraulatsd ow th&
      previous two years , without halting th© deolins in its grcdcoiicra .
                                                                           \ ?
                                                                           6
 ---pagebreak---        5            ''v:0 Cr.wC_.' .          tj •' .■   C4' VJO d3 iV •L-i.r'i: .            ■
                               iiL'j.v.r5 '«o 'Lvcxc.-ccLLritjjy        , (?5‘(d i '•: pore
       to tr.vs> T&xt^d gfetss.; £\j?l toy about 6C0 tonsvss e&& olco Itol - 'J
       ta^gi~&z$)mge Ics&o?!. m det^inis^' tfci» isjj^                                   tog
       Chir-tse escort*!, no ellcwKi^s wa& «eds either fose                         fikivioisl
       log. * 33 suffered toy the C&mnunlty aar^vfaofeursr m * r- 3'jtot of ■ '.toe
       f&li of t&a dollar or for the Cteawnlty ffsra^c^ru^'g lo&s of
       marto-t share .
                from the potassium peransaigasmte originating la the Peoples
       S^uMio of China , the Community deports the product from cth-sr
       non-avsmbor countries , in particular Csedao&lc^xli , ‘Sia Gjj.£an
       Z^ooratic Pepublio and the United States . l-Sar&at ps^tration tog
       potassium permanganate originating in China , wkloh aluoe Ka~da up
       33% of imports into the Community In 1987 , fc&a 'm&n principally at
       ■She e&pens® of other third-country manufacturers , **G£se overtoil
       share of the Gcmronity market fell from 36% in 1S63 to £6% in 1157 .
       Hot only is the volume of Caraminity Imports from other third
       -country producers still far below that of imports originating in
       China tout , in general , the period for these imports ;,: * far higher
       than those for Chinese imports .
       Although any of the above factors may have had some effect e& to 3
       CCffiixuaity industry , they explain only a minor part of twe injury to
       it . The dumped imports , taken in isolation , wherefore constitute
       tha main cause of the material injury suffered toy ths Comity
       industry oonoemsd .
                                    F. Ccüsamlty int&rggt
( S3 ) In view of the serious difficulties facing the Corasaanily ixdustry
       directly conoamai , failure to adopt measures to alit'drctc. mj
       ©d^ar£3 effects of tha dumping would pit the itototoryto in^ /toto in
       doubt , with all tbg resulting sdvsraa effects on                                     in ^
       regions concerned .             In addition ,      the measures envisaged would
                                                                                                $
 ---pagebreak---                                     - 8 -
have a negligible effect on prices for users of potassium
permanganate . The oonoluslcn la therefore m^&voidable that it la in the
Community 's Interest that action Should be taken to eliminate the injury
caused to the manufacturer oocoexnod , and this aotion should tabs the form
of a definitive anti-dumping duty . Given the violation of the previous
undertaking , a renewal of the undertaking would not afford the CcKrarunity
manufacturer sufficient protection.
                               G. Bate of duty
(84)    To eliminate this injury , it is considered neoasary to impose a
        variable duty based on a minimum prioe Wbidh, while remaining
        sul^tantially below the dumping margin , corresponds to the minimum
        prioe needed to guarantee the Community manufacturer an adequate
        profit an its sales . Since the previous undertaking was violsted ,
        it is also considered necessary to introduce , in addition to the
        variable duty , an ad valor^a duty of 2C% based on price
        undercutting in order to ensure the effectiveness of the anti¬
        dumping measures and prevent any evasion. The duty imposed Shall
        therefore be the higher of these two alternatives , with a minimum
        rate of SC% .
        For the same reason , it is also considered neoessary to oolleot
        definitively the amounts secured by way of provisional anti¬
        dumping duty under Regulation (EEC) No 360/88 .
        Accordingly , the amount of the definitive duty shall be either the
        amount by whloh the free-at-Community-frontier prioe , before duty ,
        to the first importer in the Community is less than 8.28 ECU per
        kilogramme net or 20% of that price , whichever is higher .
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                     - 9 -
                                  Article 1
The duty imposed by Regulation ( EEC ) No 3661 /86 is hereby revoked .
                                  Article 2
1 . A definitive anti-dumping duty is hereby imposed on imports of potassium
permanganate falling within CN code ex 2841 60 00, originating in the
People 's Republic of China .
2 . The amount of the duty shall be equal to either the amount by which the
f ree-at -Community-f rontier price , before duty , is less than 2.25 ECU per
kilogramme net or 20% of that price       per kilogramme net , f ree-at-Community-
frontier , before duty , whichever is higher .
3 . The provisions in force concerning customs duties shall apply .
                                  Article 3
The amounts secured by way of provisional anti-dumping duty under Regulation
( EEC ) No 360/ 88 shall be definitively collected .
                                  Article 4
This Regulation shall enter into force on the day following 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
                                                                             14