CELEX: 51987PC0382
Language: en
Date: 1987-07-28
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of kraftliner paper and board originating in Austria, Canada, Finland, Sweden, the USA and the USSR (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 382
Vol. 1987/0210
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  /
                                               COM(87 ) 382 final
                                               Brussels , 28 July 1987
                                   Proposal for a
                              COUNCIL REGULATION ( EEC )
              imposing a definitive anti-dumping duty on imports of
           kraftliner paper and board originating in Austria , Canada ,
                      Finland , Sweden , the USA and the USSR
                          ( presented   by the Commission )
                                               15   17
                                    I a3                   11
                                              so ho
  C0M(87 ) 382 final
 ---pagebreak---                               2 -
EXPLANATORY MEMORANDUM
1 . On 7 May 1986, in a notice published in Official Journal
C 109 of that year , the Commission announced the initiation of
a review of anti-dumping measures concerning imports of kraftliner
originating in Austria , Canada , Finland , Sweden , the Soviet Union
and -the USA , and commenced the necessary investigations .
2 . The investigations involved visits to the premises of the
exporters concerned , and of Community producers and certain importers .
They revealed that during the reference period May 1985-April 1986
all the exporters subject to investigation , who account for over
905f of exports to the Community from the countries covered by
the proceeding , dumped goods on the Community market , causing
material injury to the Community industry despite the anti-dumping
measures in force .
 ---pagebreak---                          - 3 -
3 . The Commission found that the average dumping margin for the
period under investigation amounted to 23.9% of the ex works
export prices of the exporters concerned .
4 . With regard to the injury caused , the Commission received
statements from exporters and importers of the product concerned
and their representative associations alleging that the Community
industry had not been damaged as a result of dumping . However ,
the investigations have established that the dumped imports have
caused material injury to the Community industry despite the
anti-dumping measures which were in force . This has taken the
form inter alia of loss of market share to dumped imports , losses
on sales of kraftliner on the Community market as a result of
prices depressed by competition from the dumped imports , and significant
under-utilization of production capacity .
 ---pagebreak---                          - 4 -
5 . The Commission concluded that it is in the Community 's interest
to maintain the domestic production of kraftliner and that this
requires an extension of the anti-dumping measures . In order
to mitigate the impact of these measures on the costs of product
users , who have to import a considerable proportion of their
requirements , the Commission judges that the best course is to
impose a variable anti-dumping duty linked to minimum reference
prices reflecting the Community industry 's production costs .
It is accordingly proposed that the Council impose a definitive
anti-dumping duty on imports of kraftliner paper and board
originating in Austria , Canada , Finland , Sweden , the USA and the
USSR .
The Anti-Dumping Advisory Committee has been consulted and only
two delegations raised objections to the proposal .
 ---pagebreak---                               - 5 -
                         Proposal for a
               COUNCIL REGULATION ( EEC )
     imposing a definitive anti-dumping duty on imports
         of kraftliner paper and board originating in
           Austria , Canada , Finland , Sweden , the USA
                           and the USSR
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic
Community ,
Having regard to Council Regulation ( EEC ) No 2176 / 84 of 23 July 1984
on protection against dumped or subsidized imports from countries
                                                      1
not members of the European Economic Community , as amended by Regu ¬
 lation ( EEC ) No 1761 /872, and in particular Article 12 thereof ,
1 0J No L 201,30.7.1984 , p.1 .
20J No L 167, 26.6.1987, p.9 .
 ---pagebreak---                           - 6 -
Having regard to the proposal presented by the Commission after
consultation of the Advisory Committee established by the said
Regulation ,
Whereas :
A. : PREVIOUS MEASURES
1 .: Council Régulation ( EEC ) No 551 /83 ^               imposed
a definitive anti-dumping duty on imports of kraftliner paper
and board originating in the USA and accepted undertakings given
in connection with the review of the anti-dumping measures imposed
on kraftliner paper and board originating in Austria , Canada ,
Finland , Portugal , Sweden , the USA and the USSR by Regulation ( EEC )
No 2133/78 ^, as amended by Regulation ( EEC ) No 1283/81'*. ,
^OJ   No L 64, 10.3.1983, p.25
* 0J No L 247, 9.9.1978, p.22
S0J No L 129, 15.5.1981 , p.4
 ---pagebreak---                                - 7 -
     B.  NEW PROCEEDING
     2.  On 7 May 1986 , following requests from one exporter , from
     the International Committee of Paper and Board Converters , Common
     Market Group , which represents the Community 's main consumer
     industry , and from the European Association of Makers of Corrugated
     Case Papers , which represents almost all Community production
     of kraftliner paper and board , the Commission of the European
     Communities announced in a notice published in the Official Journal
     of the European Communities^the initiation of a review of the
     anti-dumping measures established by Regulation ( EEC ) No 551 / 83
     and the initiation of an investigation to this effect .
ij
•J 1
;! £
     60J No C 109, 7.5.1986, p.2
 ---pagebreak---                           - 8 -
3 . Some of the arguments put forward in those review requests ,
particularly those concerning fluctuations in exchange rates ,
could not be considered to be sufficient in themselves to justify
the initiation of a review procedure , but others , such as those
relating to the changes tn the world market for kraftliner paper
and board , structural changes in the Community industry following
the accession of Spain and Portugal to the Community and the
failure to respect the anti-dumping measures in force , convinced
the authorities that such a review was desirable .
4.   The Commission officially informed the exporters and importers
concerned , as well as the representatives of the exporting countries
and the complainants , and gave the parties concerned the opportunity
to make known their views in writing and to be heard orally .
5 . Most of the exporters and the associations representing
them , some importers and the International Committee of Paper
and Board Converters , Common Market Group , submitted their
 ---pagebreak---                            - 9 -
observations on several occasions , both orally and in writing .
However , Exportles , the body responsible for exports of kraftliner
paper and board originating in the Soviet Union failed to respond
to the Commission 's invitation to make known its point of view .
6 . The Commission sought and verified the information it deemed
to be necessary for the purposes of the review procedure and
carried out investigations at the premises of 17 of the following
18 undertakings :
EEC manufacturers :
Cellullose du Pin , France
Inpacsa and Cel ulosas del Nervion , Spain
Portucel , Portugal .
These four undertakings produce nearly all the kraftliner paper
and board made in the Community .
 ---pagebreak---                         - 10 -
Exporters :
in the United States of America :
Stone Container Corporation , Chicago , Illinois
Mead Corporation , Dayton , Ohio
Great Southern Paper , Cedar Springs , Georgia
International Paper Co ., New York , New York
Westvaco Corporation , New York , New York
St Joe Paper Products Company , Port St Joe , Florida
Weyerhaeuser Company , Tacoma , Washington
Union Camp Corporation , Wayne , New Jersey
in Canada :
Macmillan Bloedel Ltd , Vancouver , B.C.
Eurocan Pulp and Paper Company Ltd , Vancouver , B.C.
in Sweden :
Assi , Stockholm
Svenska Cellulosa Aktiebolaget , SCA , Pitea
 ---pagebreak---                                 11
in Finland :
Kemi Oy , Kemi
in Austria :
Nettingsdorfer Papierf abri k , Nettingsdorf -
These exporters produced more than 90% of the kraftliner paper
and board exported to the Community from the countries covered
by the anti-dumping proceeding during the one-year reference
period selected by the Commission for the investigation
(1 May 1985 to 30 April 1986 ).
7.  The information provided by the following exporters did
not lead to investigations on the premises , either because the
undertakings concerned no longer export to the Community or
in view of the limited volume of sales which they made to the
Community during the reference period :
 ---pagebreak---                             12 -
Consolidated Bathurst Ltd , Longview Fiber Company , Crown Zellerbach ,
Willamette Industries , Champion , Owens Illionois , Container
Corporation of America , Jefferson Smurfit Corporation , Southwest
Forest Industries .
8 . The following exporters did not reply to the questionnaires
sent to them by the Commission :
as regards the undertakings in the United States : Arkansas Kraft
Corporation , Alton Box Board , Manville Forest Products , Louisiana
Pacific , St Regis Paper , Continental Forest Industries , Packaging
Corporation of America ;
as regards imports originating in the Soviet Union : Exportles .
C.  PRODUCT
9.  The product to which the measures and undertakings referred
to in point 1 apply , and which is the subject of this Regulation ,
is kpaft paper and kraft board , for covers , known as unbleached
kraftliner , falling within Common Customs Tariff subheading
No ex 48.01 C II ( b ) and corresponding to NIMEXE codes 48.01-30,
32 and ex 34 .
 ---pagebreak---                            - 13 -
10 . In the review request which it introduced on behalf of
the Community producers , the European Association of Makers
of Corrugated Case Papers pointed out that kraftliner prices
had a direct influence on the prices of all other categories
of paper , and on testliner prices in particular . Consequently ,
testliner should be taken into consideration when evaluating
the injury caused to the Community industry .
11 .  The International Committee of Paper and Board Converters
and some exporters argued in various communications that the
kraftliner and testliner markets were largely separate and that
testliner should not be taken into account in the review procedure .
12 . The Commission analysed the arguments and noted that testliner
is a paper made out of recycled fibres whose technical characteristics
( long fibre content and Mullen burst ratio ) are lower than those
of kraftliner .  The Commission therefore considered that testliner
 ---pagebreak---                           - 14 -
was not a " Like product " within the meaning of Article 2(12 )
of Regulation ( EEC ) No 2176 / 84 and that it should therefore
not be taken into account when evaluating the injury . It considered
that it was only when the Community interest was being evaluated
that the interests of testliner producers could be given the
same consideration as those of the other related branches in
the forestry and forestry-based industries .
 ---pagebreak---                         - 15 -
D.   DUMPING
(a)   NORMAL VALUE
13 .  The normal value of the kraftliner paper and board which
is the subject of the proceeding was established on the basis
of domestic prices for the Swedish , Finnish and Austrian
undertakings , as well as for one Canadian undertaking and one
in the United States .
14 . As regards the other United States' and Canadian undertakings ,
the investigation revealed that sales on their domestic markets
had been well below cost prices during the period under review ,
so that a valid comparison was not possible . Normal values
for these undertakings were therefore determined by adding together
production costs and a reasonable profit margin of 10% before
tax . This margin was based on the average profit achieved over
a long period in this industrial sector in the United States .
It was notified to the exporters concerned , who , with one exception ,
did not dispute the fact that it was reasonable . On the other
 ---pagebreak---                              - 16 -
hand, some exporters argued that the kraftliner market was a
cyclical market and that it was normal for producers to sell
at a loss for certain periods . Consequently , the prices
corresponding to these losses should be accepted as normal values
during the investigation period . Having established that the
price at which the product was actually sold with a view to
consumption in the country of origin was less than the cost
of production as defined in Article 2(3)(b)(ii ) of
Regulation ( EEC ) No 2176 / 84, the Commission concluded that :
( a ) the said sales were spread over a fairly long period of
time and substantial quantities were involved ; ( b ) the prevailing
prices were not high enough to allow all the costs to be covered
within the reasonable period in the ordinary course of trade .
Consequently , the Commission considered that normal values should
be constructed , in accordance with Article 2(3 ) and ( 4 ) of
Regulation          , ( EEC ) No 2176 / 84, by adding together the
cost of production and a reasonable profit margin based on the
average profit achieved over a long period in this type of
industrial activity in the United States .
 ---pagebreak---                                      17
One exporter asked that the calculation of normal value in the light
of production costs be based on a weighted average of his production
costs , taking into account the qualities of paper actually sold in
the Community . The Commission took this request into account .
( b ) EXPORT PRICE
15 . The export price used in the calculation of dumping margins was
the price actually paid for the product sold for export to the Community ,
based on the information provided by undertakings and verified by the
Commi ssion .
 ---pagebreak--- (c)    COMPARISON
16 . ALL comparisons between normaL values and export prices were made
at the ex-factory LeveL . ALLowances made in order to bring to the
ex-factory LeveL the export prices actuaLLy paid for the product soLd
for export to the Community ( transport , handLing , insurance , unLoading
and anciLLary costs ) were made on the basis of data provided by the
undertakings .
( d ) DUMPING MARGINS
17 . The Commission established the existence of dumping during the
reference period by aLL the exporters covered by the investigation .
As a percentage of the ex-factory prices of these undertakings , exports
to the Community , the weighted dumping margins established during the
investigation period varied between 7.8% and 53.3% .
18 .   As regards exports originating in the Soviet Union , the exporter
 ---pagebreak---                                     19 -
concerned did not reply to the questionnaire or to    the    requests
from the Commission to make its point of view known .   In view of this ,
it was not considered necessary to invoke any other third countries
in addition to those already included in the procedure in order to
détermine normal value pursuant to Article 2(5 ) of Régulation ( EEC ) No 2176 / 84 .
The dumping margin for these exports was established on the basis of
the information available . The Commission considered that the results
of its investigation constituted an appropriate basis for establishing
this margin and that this lack of cooperation should not be rewarded
by presuming that the margin was less than the widest margin established
for an exporter who had taken part in the investigation .   It therefore
considered that the dumping margin for exports originating in the
Soviet Union was equal to the highest margin established during the
investigation .
 ---pagebreak---                                       - 20 -
E.   INJURY
19 .  When determining the injury caused to the Community industry by
dumped imports , the Commission considered that only the French producer
should be taken into account , as it was the sole Community producer of
kraftliner up until 1 January 1986 . The Spanish and Portuguese producers
had been part of the Community industry only for four months of the
reference period examined, and the Commission felt that this did not
constitute a sufficient basis for satisfactory conclusions to be drawn .
The Commission 's view was in line with the opinions expressed by
several exporters and importers in their written and oral communications .
20 . The purpose of the anti-dumping measures introduced by
Regulation ( EEC ) No 551 / 83
was to eliminate dumping and the resulting injury established during the
proceeding which had ended in the adoption of the said Regulation .
The purpose of the review , which was held by the Commission pursuant
to Article 14 of             Regulation ( EEC ) No 2176 / 84 , was to determine
 ---pagebreak---                                    - 21
whether dumping still existed , whether this dumping was still causing
injury to the Community industry , whether the measures in force were
still capable of eliminating this dumping and injury and whether it
was in the Community’s interest that these measures be amended ,
repealed or annulled .
21 . As a result , determination of the injury became more complex ,
as account had to be taken of the fact that measures were in force .
The extent of the injury suffered by the Community industry in spite
of these measures had also to be assessed .
22 . The Commission 's investigations established that the export prices
to the Community applied by most exporters during the reference period
were lower than the prices which the anti-dumping measures in force
were intended to achieve in order to eliminate the injury . Hence , these
measures would normally have had an effect during this period . However ,
the Commission 's attention was drawn to the fact that a number of
customs procedures , which were not completed at the time of the adoption
 ---pagebreak---                                    - 22 -
of this Regulation , were underway . The aim of these procedures was to
check whether the anti-dumping duties which should have been collected
on imports of kraftliner originating in the United States of America had
in fact been collected .
23 . In spite of the effect which the anti-dumping measures in force
had on the elimination of the injury suffered by the Community industry
during the investigation period , the Commission observed that there
continued to be injury as a result of dumping . This injury took the
form of :
 -   loss of market shares by the Community industry to dumped imports ;
 -   financial losses suffered by the Community industry on its domestic
     sales of kraftliner during the investigation period , mainly because
     of the depressive effects of dumping prices on market prices .
 ---pagebreak---                                       23 -
 - and by considerable underutilization of its production capacity .
24 . As regards the losses of market shares , the Commission noted ,
from the Community 's official statistics and from the trade
statistics , that the Community industry 's domestic sales in 1985 were
down by 22 8% on sales in 1984 , while demand on the Community market
over the same period decreased by only 13.7% . Between 1984 and 1985
sales corresponding to dumped imports fell by only 11 76% , so that their
market share increased to the detriment of the Community industry .
The share of the Community market held by dumped imports increased
from 72 7% in 1984 to 74 3% in 1985 , while the share of imports
originating in countries not covered by the anti-dumping proceeding
fell slightly ( from 14 1% to 13 9% ) and the Community industry 's share
decreased from 13 2% to 11 8% . In 1985 the shares of the Community
market held by imports originating in various countries covered by the
proceeding were as follows : USA : 20 8% ; Canada : 5 3% ; Sweden :    39 8% ;
Finland 4.4% ; Austria : 3 1% ; and the Soviet Union : 09% .
 ---pagebreak---                                      - 24 -
  The Community industry 's Loss of its market share to dumped imports
  was particularly damaging in view of the low level of demand during
  the period in question . These global statistics were confirmed by
  the individual analyses carried out by the Commission on the basis
  of the data provided both by exporters and by Community producers .
  25 . As regards the results of sales , the Community industry suffered
  considerable losses on its sales of kraftliner during the investigation
  period , mainly because of the low price level caused by dumping on the
  part of the exporters covered by the proceeding , most of whom sold at
  a loss on the Community market during this period .
  Moreover , the Commission observed significant price undercutting on
  several Community markets as compared with the prices of the Community
  industry and concluded that dumping    resulted     either in losses of
\ market shares by Community producers when they tried to maintain their
  pricesorin financial losses when they tried to maintain their market
v shares .  Several exporters and the International Committee of Paper
  and Board Converters pointed out in this connection that the depletion
 ---pagebreak---                                      25 -
of stocks in 1985 following speculative purchases by certain consumers
in 1984 themselves had had a depressive effect both on demand and prices
At the Commission 's request , the International Committee of Paper and
Board Converters provided information on trends in kraftliner stocks
held by users between 1984 and 1986 . This information revealed that
the level of stocks moved upwards in 1984 and downwards in 1985 in
relation to a level which could be considered as normal in 1983 .
The depletion of stocks in 1985 therefore contributed to a fall in
demand on the Community market during this period but , in the
Commission 's opinion , neither the extent nor the effects of this
phenomenon could be interpreted as a significant cause of the injury
suffered by the Community industry .
26 . Finally , the Community industry suffered a significant drop in
the rate of utilization of its production capacity between 1984 and 1985
Several exporters and the International Committee of Paper and Board
Converters drew the Commission 's attention to the fact that the
available production capacity of one Community producer in 1985 had been
 ---pagebreak---                                    - 26 -
significantly reduced as a result of the closure of that producer 's
factory for repairs over a period of several weeks and a short break
in production during the winter because of particularly bad weather .
In the light of these adjustments, and in spite of the fall in production
capacity which they effectively caused , the Commission noted that the rate
of utilization of available capacity of the said producer decreased
significantly because of the decline in production caused by the sales
which it lost to dumped imports .   In view of the importance of fixed
charges in this industrial sector , this decline in the rate of utilization
of available capacity had a considerable influence on the financial
losses recorded by the undertaking .
27 . Some United States' exporters pointed out that their exports and
their market shares in the Community had decreased over the reference
period and that consequently they could not be held responsible for
the injury caused to the Community industry .
 ---pagebreak---                                         27 -
The Commission observed that although these exports had decreased ,
they had still been dumped . They , too , had had a depressive effect
on prices and , consequently , they had contributed towards the injury
caused to the Community industry .
28 . In conclusion , the Commission noted that , in spite of the measures
set up by Regulation ( EEC ) 551 / 83 , the dumping brought to light by the
investigation had caused material injury to the Community industry during
the reference period . According to the statements and information
provided by several exporters , the existence of these measures had had
a restrictive influence on dumping and it was established that^ had
these measures not existed, the injury caused to the Community industry
would have been even greater .
F.   COMMUNITY INTEREST
29 . In assessing whether it was in the Community 's interest for measures
to be taken to make good the injury resulting from dumping , the Commission
took into consideration all the arguments put forward by the parties
concerned .
 ---pagebreak---                                    - 28 -
30 . The importers and consumers represented by the International
Committee of Paper and Board Converters and several exporters pointed
out that since the Community had to import a significant proportion
of the kraftliner it consumed , it would not be in the Community 's
interest to take any measures which might increase the cost or restrict
the volume of these imports . They stressed that user industries had
also to withstand external competition and the maintenance of ad valorem
or variable anti-dumping duties on Community imports of kraftliner
could affect their competitiveness .
31 .  The Commission noted that Community imports of corrugated board ,
which is the main product manufactured from kraftliner , were extremely
low ( less than 30 million ECU in 1986 , which is less than 2% of the
Community 's consumption of corrugated board ) and that these imports
came mainly from countries covered by the proceeding . The investigation
revealed that domestic prices of kraftliner in these countries were
significantly higher than the prices of kraftliner in the Community .
Moreover , corrugated board is a product in which trade is limited ,
 ---pagebreak---                                      29
not only by the abovementioned points relating to cost prices , but also
because , for reasons of wlume and transport costs , trade can only be
over relatively short distances . As a result , the Commission considered
that the maintenance of anti-dumping measures on Community imports of
kraftliner could have only a marginal effect on Community imports of
corrugated board and on the pressure which these imports exert on
Community producers of corrugated board .
32 . In conclusion the Commission considered that , overall ,
it was in the Community 's interest to promote greater competitiveness
throughout the industrial sector concerned , which includes the production
of pulp from wood and recycled paper , the processing of this raw material
into various types of paper ( kraftliner , testliner , wellenstoff , etc .)
and the conversion of this paper into finished products .
 ---pagebreak---                                     - 30 -
Two points were considered particularly important :
  (i)  Kraftliner production in the Community , for which wood of Community
       origin is the main raw material , must be maintained in order to
       prevent user industries from becoming totally dependent on imports
       for their kraftliner supplies .   The resulting dependence and
       vulnerability would , in the Commission 's opinion , run counter to
       consumers' long-term interests and would weaken the structure of
       the entire industrial sector concerned .
( ii ) The maintenance of kraftliner production in the Community implies
       the existence of a safety net to protect it from unfair commercial
       practices .  The analyses carried out by the Commission on the
       situation as regards markets and production capacities , both in the
       countries concerned by the proceeding and at world level , showed that
       without this safety net the very existence of a Community kraftliner
       industry could be jeopardized if dumping continued .
 ---pagebreak---                                     31
33 . In the Light of the above , the Commission considered that the
     maintenance of anti-dumping measures for imports of kraftliner
     originating in the countries covered by the proceeding was
     necessary .
 ---pagebreak---                                        - 32 -
G.   TYPE OF MEASURES
34 . The Commission took into account the nature of the product in question
     and the possible effect of the measures on user industries .       It
     considered that these measures should not take the form of ad valorem
     anti-dumping duties because kraftliner prices varied considerably .
     Moreover , it wanted to avoid unjustified costs being imposed on users .
     It considered that the most appropriate method of eliminating the
     injury caused by dumping would be to introduce variable anti-dumping
     duties linked to minimum reference prices reflecting the production
     costs of the Community kraftliner industry .
     The United States' exporters asked that , should such a system be
     introduced , a specific accelerated review mechanism should be set up
     to enable the minimum price to be adapted very quickly should
     developments on the market make such an adaptation necessary .        The
     Commission rejected this request , pointing out that express
     provision for a review procedure was made in Article 14 of
     Regulation ( EEC ) No 2176 / 84 , which lays down that the regulations
 ---pagebreak---                                     - 33
     imposing anti-dumping duties are reviewed where necessary at the
     request of an interested party which submits sufficient evidence to
     justify the need for such a review , provided that at Least one year
     has elapsed since the conclusion of the investigation and that ,
     where warranted by the review , carried out either with or without
     re-opening of the investigation , the measures are amended , repealed
     or annulled by the Community institution competent for their
     introduction .
35 . On the basis of the information relating to the period of investigation ,
     the price level required to eliminate the injury ca^ed to the
     Community industry should be 461 ECU per tonne ,       f ree - at - Communi ty-
     frontier price , duty-paid , to the first independent purchaser in the
     Community customs territory for kraftliner of a nominal weight per
     square metre of 150 to 175 grams .
36 . However , the Commission considered that , when determining the
     effective level of the minimum price to be established , account should
     be taken of the change in the situation of the Community kraftliner
     industry , and in particular its greater competitiveness following
     the enlargement of the Community , and that this price should therefore
     be established in the light of the average weighted production costs of
 ---pagebreak---                                             - 34 -
      the most competitive Community producers after the accession of Spain
      and Portugal , plus a reasonable minimum profit margin of 5% .
37 .  On this basis , the minimum reference price should be 320 ECU          per
      metric tonne , f ree -at - f rontier , duty-paid , for kraftliner of a
      nominal weight of 150 grams to 175 grams per square metre ; 301 ECU
      for kraftliner of a nominal weight of 175 grams to 337 grams per square
      metre ; and 335 ECU for kraftliner of a nominal weight of less than
      150 grams per square metre . As regards kraftliner originating in the
      Soviet Union , one importer asked that the inferior physical characteristics of this
      kraftliner be taken into account . In view of this difference in quality ,
     which is recognized by all the parties , the reference prices for
      kraftliner originating in the Soviet Union were established respectively
     at 271 ECU ( 175 grams to 337 grams per square metre ), 289 ECU ( 150 grams to
     175 grams per square metre ) and 303 ECU ( less than 150 grams per
      square metre ).
 ---pagebreak---                                         - 35
HAS ADOPTED THIS REGULATION :
                                      Article 1
A definitive anti-dumping duty is hereby imposed on kraft paper and
kraft board for cover , called " unbleached kraft liner ", of less than
337 grams per square metre , falling within Common Customs Tariff
subheading ex 48.01 C II ( b ) and corresponding to NIMEXE codes 48.01-30 ,
32 and ex 34 , originating in Austria , Canada , Finland , Sweden , the USA
and the USSR .
The provisions in force for the application of customs duty shall apply
in respect of this duty , without prejudice to this
Régulation .
                                      Article 2
1.   The amount of the duty shall correspond to the difference between
     the minimum reference price laid down in paragraph 2 and the net
     price per tonne , f ree - at - Community - f rontier , duty-unpaid , to the
 ---pagebreak---                                        - 36 -
   first purchaser in the customs territory of the Community .
   This f ree -at - Community - f rontier price , duty-unpaid , shall be net
   if the actual conditions of sale are such that the payment is made
   within 30 days of the date of dispatch ; it shall be reduced by 1%
   for each month of credit effectively granted .
2. For the purpose of this Regulation , the minimum reference price
   shall be defined as follows , per tonne , .          "fvee- Af- Community -f rontier
   price , duty-unpaid , depending on the origin of the imports concerned :
 ---pagebreak---                              - 37
Country of origin  USA , Canada   Austria , Sweden Soviet Union
                                  Finland
nominal weight per
square metre
less than
150 grams :           316 ECU       335 ECU          303 ECU
150 grams and
more , but less
than 175 grams :      302 ECU       320 ECU          289 ECU
175 grams and
more , but less
than 337 grams :      284 ECU       301 ECU          271 ECU
 ---pagebreak---                                      - 38 -
   Where prices are invoiced by reference to area , the minimum
   reference price per 100 square metres shall be calculated in
   accordance with the following formula :
                         reference price 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 .
4. Where it appears to the customs authorities that there exists between
   the importer and the exporter or a third party an association or a
   compensation arrangement within the meaning of Article 2(8 ) ( b ) of
   Regulation ( EEC ) No 2176 / 84 , the price actually paid or to be paid
 ---pagebreak---                                               - 39
         for the product sold for export to the Community
         may not be used as a reference for the establishment of the net
         unit pri ce, f ree - at - Communi ty-f ront i er , referred to in paragraph 1 .
         The net unit price , f ree - at - Communi ty-f rontier , shall correspond
         in this case to the customs value such as it would be determined
         in accordance with Article 6 of Council Regulation (EEC) No 1224/807.
         Otherwise , in cases where , for an associated importer , the customs
         value could not be established in accordance with the above
         provisions , the net free - at - f rontier price shall correspond to the
         customs value as it would be determined in accordance with
         Article 2(3 ) of the same Regulation .
                                            Article 3
   Regulation ( EEC ) No 551 / 83 is hereby repealed .
70J No L 134, 31.5.1980, p.1 .
 ---pagebreak---                                    - 40 -
                                  Artide 4
This Regulation shall enter into force on the day following that of its
publication in the Official Journal of the European Communities .
This Regulation shal l be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,              1987
                                             For the Council
                                             The President