CELEX: 51983PC0067
Language: en
Date: 1983-02-07
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on kraftliner paper and board originating in the United States of America and accepting undertakings given in connection with the review of the anti-dumping proceeding on kraftliner paper and board originating in Austria, Canada, Finland, Portugal, the Soviet Union and Sweden (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 067
Vol. 1983/0024
 ---pagebreak--- Disclaimer
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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), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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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
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
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), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               C0MC83) 67 final
                                               Brussels, 7 February 1983
                                Proposal for a
                           COUNCIL REGULATION (EEC)
  imposing a definitive anti-dumping duty on kraftliner paper and board
  originating in the United States of America and accepting undertakings
  given in connection with the review of the anti-dumping proceeding on
  kraftliner paper and board originating in Austria, Canada, Finland,
                    Portugal, the Soviet Union and Sweden
                  (submitted to the Council by the Commission)
    C0MC83) 67 final
 ---pagebreak---                                                          e e n    C ?
                         EXPLANATORY MEMORANDUM
On 8 September 1978 the Council, by Regulation (EEC) N° 2133/78 imposed a
definitive anti-dumping duty on imports of kraftliner originating in the
USA.   Undertakings on kraftliner imports from Austria, Canada, Finland,
Portugal, Sweden and the Soviet Union were also accepted in 1978.
In July 1982 the Groupement Européen des Fabricants de Papiers pour Ondulé
asked in accordance with Article 14 of Regulation (EEC) N° 3017/79 that the
duty and undertakings be reviewed on the grounds that there was renewed
dumping and that the level of the normal value established in the duty and
undertakings had been largely surpassed.     It was also alleged that the EEC
 industry was suffering material injury which was likely to worsen if the
 situation persisted.
 The Commission, after consultation, re-opened the procedure and commenced its
 investigation.   This investigation showed that there was, in fact, renewed
 dumping with the following margins:
                                                %
 Great Northern Paper                         8.2
 International Paper Co                       5.9
 St Joe Paper Co                            10.0
 St Regis Paper Co                            9.7
 Union Camp Corporation                       4.3
 Westvaco Corporation                       11.3
 Weyerhaeuser Company                       11 .5
 Macmillan Bloedel Ltd                        6.5
 Kemi, Oy                                   25.9
  Portuce l                                 12.0
  ASSI                                        9.5
  Obbola Linerboard                         24.5
  SCA                                        10.0
  Nettingsdorfer                               2.5
  Stone Container                            15.5
  Certain exporters either did not co-operate in the investigation or did not
  make themselves known to the Commission and for these companies the Commission
  considered it would be a bonus for non-cooperation to determine a dumping
  margin below that found for a cooperating exporter.
 ---pagebreak---                               - 2 -
It was also established that the Community producer was suffering renewed
material injury which was likely to worsen if no action was taken.
It is therefore considered to be in the Community's interest that new floor
prices related to the normal value in the USA should be   set.  The 'base'
price of US$333 per tonne refers to the standard weight of linerboard
(175 gm) with the current usual upcharges of $20 per tonne for medium weight
and $35 per tonne for lightweight being applied.
Revised undertakings based on these prices have been submitted concerning
exports from the other countries concerned.   These are also considered to
be acceptable.
Member States have been informed of these proposals in the Anti-Dumping
Committee.   Germany has expressed some reservations on behalf of consumers
and will probably request further discussion in the Council.
 ---pagebreak---                             Proposal for a
                      COUNCIL REGULATION (EEC)
imposing a definitive anti-dumping duty on kraftliner paper and
board originating in the United States of America and accepting
undertakings given in connection with the review of the anti­
dumping proceeding on kraftliner paper and board originating in
Austria, Canada, Finland, Portugal, the Soviet Union and Sweden
THE COUNCIL OF THE 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     as amended by Regulation
 (EEC) No 1580/822 , and in particular Article 12 thereof,
 Having   egard to the proposal submitted by the Commisison,
 After consultations within the Advisory Committee provided for by the said
 Regulati on,
 Whereas the Council, by Regulation (EEC) No 2133/783 , imposed a definitive
 anti-dumping duty on imports of kraftliner paper and board originating in
 the USA;
 Whereas that Regulation was subsequently amended by Regulations(EEC) No
 572/794 and (EEC) No 1283/813 to take account of certain changes in the
 Nimexe codes covered by the duty;
 Whereas the amount of the duty corresponded to the difference between the
 normal value (the "fair market price") in the USA as set out in Article 2(2)
 of Regulation (EEC) No 2133/78 and the free-at-frontier Community price,
 duty unpaid, per tonne net to the first purchaser in the customs territory
  of the Community;
   10J  No L 339, 31.12.1979, p. 1
  20J   No L 178, 22.06.1982, p. 9
  3 0J  No L 247, 09.09.1978, p. 22
  4 0J  No L 77, 29.03.1979, p.    1
  50J   No L 129, 15.05.1981, p. 4
 ---pagebreak---                                - 2 -
Whereas the Commission accepted undertakings given in connection with the
anti-dumping proceedings concerning imports of kraftliner paper          and board
originating in Austria, Canada, Finland, Portugal, the Soviet Union and
       1
Sweden ;
Whereas on 30 July 1982 the Commission received a request from the European
Association of Papermakers for Corrugating Boxes on behalf of all Community
producers of kraftliner paper and board and testliner for a review of the duty
imposed on kraft liner paper and board from the USA and for a review of the undertakings
given in connection with the anti-dumping proceedings concerning imports
of kraftliner paper and board originating in Austria, Canada, Finland,
Portugal, the Soviet Union and Sweden, together with evidence that dumping
was again being practised in respect of these imports and that the EEC
industry was suffering from renewed material injury;
Whereas,since the said information provided sufficient evidence to justify
a review of the proceedings,the Commission announced by a notice
                                                                    2
published in the Official Journal of the European Communities a review of
the definitive anti-dumping duty on imports of kraftliner paper and board
originating in the USA and of the acceptance of undertakings given in
connection with the anti-dumping proceedings concerning imports of kraft-
liner paper and board originating in Austria, Canada, Finland, Portugal,
the Soviet Union and Sweden, and commenced an investigation of the matter
at Community level;
Whereas the Commission officially so advised the exporters and importers
known by it to be concerned as well as the representatives of the exporting
countries    and the complainants;
Whereas the Commission has given the parties directly concerned the opportunity
to make known their views in writing and to be heard; *2
 0J   N° C 61, 10.03.1978, p.     2
 0J   N° C 69, 18.03.1978, p.     2
 0J   N° C 174, 21.07.1978, p.    2
20J   N° C 217, 21.08.1982, p.    2
 ---pagebreak---                               - 3 -
Whereas most of the exporters, some importers and several consumers known
to be concerned took this opportunity to present written and oral observa­
tions; whereas, however, Exportles, the exporting agency in the Soviet Union,
failed to respond to the Commission's invitation to make known its views,
as did several brokers and dealers; whereas the largest Canadian exporter
also failed to respond to the Commission's invitation to co-operate in the
on-spot investigation of the facts;
 Whereas the Commission sought and verified the information it deemed to be
 necessary for the purposes of the review proceeding and carried out investi­
 gations at the premises of the following:-
 EEC producer: Cellulose du Pin, Facture, France
  Exporters:    in the United States of America
                Great Southern Paper, Dothan, Alabama
                International paper Co, New York, NY
                St Joe Paper Co, Port St Joe, Florida
                St Regis Paper co, New York, NY
                Stone Container Corporation, Chicago, Illinois
                Union Camp Corporation, Wayne, New Jersey
                Westvaco Corporation, New York, NY
                 Weyerhaeuser Company, Tacoma, Washington
                 in Canada
                 MacMillan Bloedel Ltd, Vancouver (BC) on behalf of
                 their US subsidiary at Pinehill, Alabama
                  in Finland
                  Kemi Oy, Kemi
                  in Portugal
                  Portucel, Lisbon
                   in Sweden
                   ASSI, Stockholm
                   Svenska Cellulosa Aktiebolaget SCA, Pitea
 ---pagebreak---                                 - 4 -
- Information concerning Obbola Linerboard AB, Obbola, Sweden, was provided
   by the company's owners, Svenska Cellulosa Aktiebolaget SCA, Sweden and
   St Regis Paper Company, USA;
- The Austrian exporter. Nettingsdorfer Papierfabrik, Nettingsdorf, presented
   information at the Commission's offices in Brussels;
- Information concerning exports from the Soviet Union was submitted by the
  principal importers in the European Community;
  Whereas the Commission selected the last quarter of 1981 and the first
  three quarters of 1982 as the relevant investigation period;
  Whereas for exporters from Austria, Canada, Finland, Portugal, Sweden and
  the USA normal value was determined on the basis of the price actually paid
  in the ordinary course of trade for the like product intended for consumption
  in their respective domestic markets; whereas in those cases where these
  prices varied the normal values were established by reference to weighted average
  and/or prevailing prices; whereas f o r t h e Soviet Union, which is a non-market economy
  country the normal value was determined on the basis of the price at which
  the like product was sold in the USA with adjustments to take account of
  certain differences in roll widths; whereas this method of determining the
 normal value was not disputed by the Soviet exporter or by the Community
  importers;
 Whereas in establishing the profitability of domestic sales it was noted that
  most US producers were unable to demonstrate that their most recent sales
  prices were at Levels sufficient to cover all costs; whereas these sales were
  therefore considered as not having been made in the ordinary course of trade
  and were consequently excluded from the calculation of normal value;
 ---pagebreak---                                   - 5 -
 Whereas export prices were determined on the basis of the prices actually
 paid or payable for          products exported to the Community during the
 period of investigation;
 Whe r e a s /in comparing normal value with export prices, the Commission took
 account where appropriate of differences affecting price comparability, such
 as differences in transport, insurance, handling, loading and ancillary costs;
 whereas all comparisons were made at an ex-works level;
 Whereas the above examination of the facts showed that dumping had generally
  commenced in the second quarter of 1982 and had continued throughout the year,
  the margins being equal to the amount by which the normal value as established
  exceeded the price for export to the Community;
  Whereas these margins vary according to the exporter; whereas the weighted
  average margin from the time that dumping had commenced for each of the
  exporters co-operating in the investigation was as follows:
                                              X
   Great Southern Paper                     8. 2
  International Paper Co                    5. 9
  St Joe Paper Co                          10. 0
  St Regis Paper Co                         9. 7
  Union Camp Corporation                    4. 3
  Westvaco Corporation                     11 .3
  Weyerhaeuser Company                     11 .5
  Macmillan Bloedel Ltd                     6. 5
  Kemi Oy                                  25..9
  Portucel                                 12..0
  ASSI                                      9..5
   Obbola Linerboard                       •?4 .5
  SCA
                                           '10 .0
  Nettingsdorfer Papierfabrik                2 .5
- The Stone Container Corporation did not have direct export sales to the
   European Community but sold domestically to a dealer for onward export.
  Using these sales as the basis of comparison the dumping margin was calculated
   as 15.5% ;
   Whereas those companies who also exported but in less significant amounts than
   those subject to on-spot investigation were informed of the results of the
    Commission's investigation and of its intention to act, and did not dispute
    them;
 ---pagebreak---                           - 6 -
Whereas for those exporters who neither replied to the Commission's
questionnaire nor made themselves known otherwise in the course of the
review investigation, the dumping margin was determined on the basis of the
facts available; whereas the Commission considers that the results of its
investigation provided an accurate basis for determination of the level of
dumping and that it would constitute a bonus for non co-operation to assume
that the dumping margin for these exporters was any lower than the highest
dumping margin of25.9% determined with regard to an exporter who had
co-operated in the investigation; whereas for these reasons it is considered
appropriate to use this latter dumping margin for this group of exporters;
Whereas with regard to injury caused by the dumped imports the request for
review submitted by the European Association of Papermakers for Corrugating
Boxes alleged that injury was being suffered by Community producers of both
kraftliner paper and board and testliner; whereas the Commission has
confined its re-examination of injury to production in the Community of the
like product, i.e. kraftliner paper and board;
Whereas the evidence available to the Commission shows that imports into
the Community from the countries concerned have maintained a fairly constant
market share of approximately 80% since 1979;
Whereas selling prices to the Community from the countries concerned have
been declining throughout 1982 with a consequent depressing effect; whereas
this price deterioration has been particularly marked in two Community
markets, viz. Germany and Italy; whereas Germany and Italy account for
approximately 90% of the Community producer's sales outside the French
market; whereas in order to maintain sales in these areas it has been
necessary for the EEC producer to meet the prices of the dumped
imports; whereas there is clear evidence that the decline in prices is
cont inui ng;
Whereas the consequent impact on this Community industry has been an inability
to cover costs on sales to Germany and Italy; whereas in France there is
 ---pagebreak---                            - 7 -
also price deterioration which has reduced the Community producer's profit
to a Level near break-even and which, if allowed to continue, would result
 in losses for the producer;
 Whereas the Commission has considered whether injury has been caused by
 other factors such as the volume and prices of undumped imports and
 stagnation of demand; whereas imports from countries other than those
 concerned in this review have considerably declined; whereas consumption
 in the Community has not significantly changed from 1981 to 1982; whereas
 the prices at which the dumped imports are offered for sale in the Community
have led the Commission to determine that the effects of the dumped imports
 of kraftliner paper and board originating in Austria, Canada, Finland,
 Portugal, the Soviet Union, Sweden and the USA taken in isolation have to
 be considered as causing renewed material injury to the Community industry;
  whereas this injury is likely to increase if no action is taken;
  Whereas Community consumers in the Netherlands, Italy, the United Kingdom
  and Germany have argued that the introduction of higher minimum prices for
  kraftliner paper and board would not be in the Community's interest because
  it would have disruptive effects on their processing industries; whereas,
   however, the Fédération Nationale des Transformateurs de Papiers and the Union
  Syndicale Française de Carton Ondulé, France, specifically asked that the
  fact that they did not wish to express any opinion on this matter should
  be brought to the attention of the Commission; whereas   if the Community
  producers were to disappear from the market the Community would become
  dependent upon external suppliers of this product; whereas it seems to be
   in the interest of the users to have access to both sources of supply;
   whereas, in view of this and the particularly serious difficulties facing
   the Community industry, the Commission has nevertheless come to the conclusion
   that it is in the Community's interests that action be taken;
   Whereas the exporters concerned were informed of the main findings of the
   review and commented on them; whereas revised undertakings were subsequently
   offered covering all relevant exports from Austria, Canada, Finland, Portugal,
   the Soviet Union and Sweden of kraftliner paper and board to the C>. nmunity;
 ---pagebreak---                               - 8 -
whereas the effect of the said undertakings will be to increase export prices
to the level which the Commission, having examined the Community producer's
weighted average prices and costs, taking account of their profit situation,
considers necessary to eliminate injury; whereas these increases in no case
exceed the dumping margin;
Whereas the Commsision has, therefore, determined that it is not now
necessary to take protective action in respect of imports of kraftliner
paper and board originating in Austria, Canada, Finland, Portugal, the
Soviet Union and Sweden; whereas, in these circumstances, the undertakings
offered are considered acceptable and the review may, therefore, be
terminated without imposition of anti-dumping duties on kraftliner paper
and board from Austria, Canada, Finland, Portugal, the Soviet Union and
Sweden;
Whereas as regards exports of kraftliner paper and board from the USA the
Commission has received no new evidence to alter its view that the
continued application of a duty is necessary for the elimination of injury
and the prevention of its recurrence; whereas the definitive anti-dumping
duty imposed by Regulation (EEC) No 2133/78 should now be replaced by a
new duty based on floor prices derived from the normal value in the USA;
Whereas for these reasons, and for the sake of legislative transparency,
it is necessary to replace the said Regulation,
HAS ADOPTED THIS REGULATION:
 ---pagebreak---                                - 9 -
                               Article 1
A definitive anti-dumping duty is hereby imposed on unbleached kraftliner paper and
board falling within Common Customs Tariff subheading ex 48.01 C II and
correspond!ng to Nimexe codes 48.01-30, 32 and ex 34, originating in the
United States of America.
The provisions in force for the application of customs duties      shall apply
in respect of this duty.
                                Article 2
 1.   The amount of   the duty shall correspond to the difference between the
 normal value in the United States of America as set out in paragraph 2 and
 the free-at-frontier Community price, duty unpaid, per tonne net to the
 first purchaser in the customs territory of the Community.
 2.    For the purpose of this Regulation, the normal values in the United
 States of America, brought up to a CIF Community frontier basis, duty
 unpaid, are as follows:
                                                              per tonne
 Nominal weight 175 grams or more but    less than
 337 grams per square metre:                                  US$333
  Nominal weight 150 grams or more but    less than
  175 grams per square metre:                                 US$353
  Nominal weight less than 150 grams per square
  metre:                                                      US$368
  These prices:
  - shall be reduced by 1% if payment is made immediate ly on receipt of the
     goods by the first purchaser in the customs territory of the community,
  - shall be net if payment is made within 30 days of the receipt of the goods
     by the first purchaser in the customs territory of the Community,
   - shall be increased by 1% for each subsequent 30 day period of credit.
 ---pagebreak---                                - 10 -
  Where prices are invoiced by reference to area, the normal value per 100
  square metres shall be calculated in accordance with the following formula:
                  normal value price in US$ per tonne
                X nominal gram weight per square metre
                                 10 000
 The actual gram weight may vary by +_ 5% from the nominal gram weight.
 3.   The duty shall not apply where the importer proves to the satisfaction
 of the competent national authorities that the price differential referred
 to in paragraph 1 is due to the goods being damaged.
                              Article 3
 The undertakings given by Nettingsdorfer Papierfabrik, Austria; Eurocan Pulp
 and Paper Co, Consolidated Bathurst Paper Sales Ltd and Domtar Inc, Canada;
 Kemi Oy, Finland; Portuc^l, Pqrtuqa.l; A S S I O b b o l a Linerboard AB and Svenska
 CellulosaAktiebolaget SCA, Sweden; John Bett Associates Ltd and Churchills
  and Caspars Ltd, UK; Rufin Pierard Forest Products Agencies, Belgium,
  Conrad Jacobson GmbH and Jacob Jtlrgensen, Germany, Eduard Van Leer, Netherlands,
 and Induspap, France in connection with the anti-dumping proceeding concerning
 kraftliner paper and board originating in Austria, Canada, Finland, Portugal,
 the Soviet Union and Sweden are hereby accepted.
                              Article 4
The anti-dumping proceeding concerning imports of kraftliner paper and
board originating in Austria, Canada, Finland, Portugal, the Soviet Union,
and Sweden is hereby terminated.
                             Article 5
Regulation (EEC) N° 2133/78    is hereby repealed.
 ---pagebreak---                               - 11 -
                            Article 6
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