CELEX: 51983PC0565
Language: en
Date: 1983-09-20
Title: Proposal for a COUNCIL REGULATION (EEC) terminating the anti-dumping proceedings concerning imports of unwrought nickel, not alloyed, in the form of cathodes produced by electrolysis, either uncut or cut into squares, originating in the Soviet Union (submitted to the Council by the Commission)

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COM (83) 565
Vol. 1983/0213
 ---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), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
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
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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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
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 ---pagebreak---  C OM M ISSION OF THE EU R O P EA N C O M M U N IT IES
                                                                        C0M(83)       565 f i n a l
                                                                        B ru s s e ls ,   20 S e p te m b e r      1983
                                                     P roposal        fo r   a
                                             COUNCIL REGULATION (EEC)
           te r m in a tin g     th e  a n ti-d u m p in g     p ro c e e d in g s  c o n c e rn in g    im p o rts      of
                   u nw ro u g h t n i c k e l ,  not     a llo y e d ,   in   th e    fo rm o f     c a th o d e s
             p r o d u c e d by e l e c t r o l y s i s ,   e ith e r    uncut o r       cut    in to      s q u a re s,
                                      o r ig in a tin g     in   th e    S o v ie t  U n io n
                            (s u b m itte d    to  th e    C o u n c i l by t h e      C o m m is s io n )
C0MC83) 565 f i n a l
 ---pagebreak---                                        EXPLANATORY MEMORANDUM
 On 17 June 1983 t h e                 C o m m is s io n , b y R e g u l a t i o n          (EEC)      No 1 6 1 3 / 8 3 ,     im p o se d
 a p ro v is io n a l      a n ti-d u m p in g       d u t y o f 7% on            im p o rts     of    u n w rou g ht    n ic k e l,
 not    a llo y e d ,    in th e       f o r m o f c a t h o d e s p r o d u c e d by e l e c t r o l y s i s ,            e ith e r
 uncut or         cut    in to     sq ua re s, o r ig in a t in g            in     th e    S o v ie t   U n io n .
 The s e v e n p e r       c e n t d u t y was im p o s e d on t h e                  b a s is   th a t    th e   S o v ie t   U n io n
 had been t h e p r i c e            le a d e r    in   1982 and had u n d e r c u t                 th e    averag e      im p o rt
p ric e s     o f o th e r     th ird       c o u n try    s u p p lie rs       to    th e    C om m u n ity by 7% i n           th a t   ye a r.
The S o v i e t      e x p o rte r    d is p u te d th e         b a s is    of     c a lc u la tin g      n orm al    v a lu e ,    i.e .
 c o n s tru c te d    v a lu e    in    C anada,       c la im in g       th a t     th e p r ic e      on t h e     w o rld t e r m in a l
m a rk e t,     th e   London M e t a l           Exchange,          s h o u l d be u s e d .          The C o m m i s s io n 's
 s e rv ic e s    do n o t     accept         th is   a rg u m e n t.
 Dumping by t h e            S o v ie t    U n io n has b ee n c o n f i r m e d              (52% m a r g i n ) .
The E u ro p e a n       In d u s try       is   c o n tin u in g      to    e x p e rie n c e      in ju ry    th o u g h   it    is
d iffic u lt       to    s u s ta in     th e    a rg u m e n t    th a t    th is      is   s o le ly     a ttr ib u ta b le      to
dumped S o v i e t         e x p o rts      (se e b e l o w ) .                                        Sl...
S in c e t h e     im p o s itio n o f th e d u ty ,               th e    C o m m is s io n has b e e n r e q u e s t e d by t h e
S o v ie t   e x p o rte r    to    u p d a te th e        i n v e s t i g a t i o n to ta k e       account o f         a lle g e d
changes         in th e     n ic k e l     m arket      in     1983.         The C o m m is s io n was a l s o             o rd e re d
by th e P r e s id e n t o f th e              C o u rt o f      J u s tic e      of   th e    E uropean        C o m m u n itie s    on
19 J u l y     1983 t o       m o n ito r      fro m day to            d a y any        ch a n g e s   in    p ric e s   on t h e     m a rke t
of    th e p ro d u c t     w h ic h     is    s u b je c t    to   th e p r o v is io n a l         d u ty .
The     C o m m is s io n 's    s e rv ic e s      have a c c o r d i n g l y        u p d a te d t h e      in v e s tig a tio n
p e rio d    to    in c lu d e    th e     fir s t    fiv e      m o n th s o f      1983 as w e l l           as t h e    12 m o n th s
of    1982.        In a d d it io n        to    th e   S o v ie t     U n io n t h e r e      w e re s e v e n o t h e r      m a jo r
e x p o rte rs     to   th e    C o m m u n ity .       The u p d a t i n g        of    th e    in v e s tig a tio n      has shown
th a t    th e   S o v ie t   U n io n     has been r e p l a c e d by A u s t r a l i a                as t h e p r i c e       le a d e r
and t h a t ,      in   s p ite o f        a c o n tin u in g       fa ll       in   S o v ie t    e x p o rt p ric e s      to   th e
 ---pagebreak---  EEC, t h e     S o v ie t    U n io n w as,       in    fa c t,   u n d e r c u t by f o u r      o th e r    th ird    c o u n try
s u p p lie rs .       It   had a l s o       been o v e r t a k e n     in    te rm s o f     v o lu m e     in   1983 by
tw o o t h e r    e x p o rte rs .
 It   can, th e re fo re ,          no l o n g e r be s u s t a i n e d        th a t   th e   S o v ie t    U n io n  has
c o n s is te n tly     u nd e rcu t      th e p r ic e s     o f o th e r     s u p p lie rs    and t h e       ju s tific a tio n
fo r    th e m a in te n a n c e o f th e d u ty            has d u l y     d is a p p e a re d .
The EEC c o m p l a i n a n t s         have bee n        in fo r m e d o f th e        fa c t   th a t   th e    S o v ie t   U n io n
has been r e p l a c e d by o t h e r              s u p p lie rs   as p r i c e      u n d e rc u tte r     but    have
d e c lin e d to      r e q u e s t o p e n in g o f      an a n t i - d u m p i n g    in v e s tig a tio n      a g a in s t  th e se
o th e r   s u p p lie rs .
In    th e s e  c irc u m s ta n c e s ,      it   is   p ro p o se d to      te rm in a te      th e   a n ti-d u m p in g
p ro ce d u re    c o n c e rn in g     n ic k e l   fro m t h e    S o v ie t    U n io n w i t h o u t     th e   im p o s itio n
of    a d e fin itiv e        a n ti- d u m p in g    d u ty   and t o      o rd e r   th e    re le a s e o f      any
s e c u ritie s    p ro v id e d      fo r   t h e am o un t o f t h e p r o v i s i o n a l         a n ti- d u m p in g    d u ty .
Member S t a t e s          have bee n c o n s u l t e d o n t h i s p r o p o s a l .              G re e c e was t h e
o n l y Member S t a t e w h i c h e x p r e s s e d r e s e r v a t i o n s .
 ---pagebreak---            Proposal for a
               COUNCIL REGULATION (EEC)
   terminating th.e anti-dumping proceedings concerning imports
   of unwrought nickel, not alloyed, in the form of cathodes produced
   by electrolysis, either uncut or cut into squares, originating
   in the Soviet Union
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                        * 1       7     i
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 (1), as amended by Regulation (EEC)
No 1580/82(2), and in particular Article: 9 thereof,
 Having regard to the proposal submitted by the Commission after con­
sultations     within the Advisory Committee as provided for under the
 above Regulation,
 Whereas :
 A.   Provisional action                         ... ,..··;··          ·.·■ ; ; -,.
 The Commission, by Regulation (EEC) No 1613/83(3), imposed a provisional
 anti-dumping duty on imports of unwrought nickel, not alloyed, in the              .*
 form of cathodes produced by electrolysis, either uncut or cut into
 squares,originating in the Soviet Union.
 B.   Subsequent procedures
  Following the imposition of the provisional anti-dumping duty the
  exporter , V/0 Raznoimport and some Community consumers, the Deutscher
  Giessereiverband   and the EdelstahlVereinigung e.V.,        requested,
  and were granted, an    opportunity to be heard by the Commission.          : y.
  The exporter and those consumers also made written submissions making                v
  known their views on the duty.
  Raznoimport requested the Commission to take account of alleged upward
  price movements in the nickel market by updating the original investigation
period which covered        ' January to December 1982. The Commission extended
  its investigation to cover not only 1982 but also the f i r s t five months of 1983
  (1) 0J No L 339, 31.12.1979, p. 1.
 (2) 0J No L 178, 22.6.1982, p. 9.
  (3) 0J No L 159, 17.6.1983, p. 43.
 ---pagebreak---     C.  Like product                   .......... .         .........
   The EdeLstahL Vereinigung argued that the nickel originating in the
   Soviet Union and the nickel produced by the complainants were not like
   products.   The nickel produced by Inco Europe, UK and SLN, France, is
   of a purity of 99% plus, as is the nickel originating in the Soviet
   Union.   Each is almost completely interchangeable in application with
   the other and therefore they have to be considered as being like
   products in terms of Regulation (EEC) No 3017/79. Larco, Greece, produces ,
   ferronickel, a nickel compound which, for the purposes of de f in it iv e
   action, was not considered by the Commission to be a like product and
  was therefore excluded from the Commission's consideration on injury.
  D.   Dumping
  For the imposition of the provisional duty, the Commission had determined
  that there was dumping in respect of nickel originating in the Soviet
  Union, the margins varying according to the date of the transaction and
  the importing Member State, the weighted average margin being 40%.
  In establishing the normal value, the Commission had to take account of
 the fact that the Soviet Union does not have a market economy and that,
 therefore, in accordance with Regulation (EEC) No 3017/79, normal value
 should be determined with reference to prices or costs of a producer or
 producers in a market economy country.             In this connection the Commission
 based its calculation of normal value on the constructed value of the
 like product of Falconbridge Ltd, an independent producer in Canada,
and set out its reasons for so doing in re c i t a l 11 of Regulation (EEC) No
1613/83.     There is no reason to change the preliminary determination in
this respect.
No proposal was made by any           interested party as to another analogue
country.
I t was confirmed with the Canadian producer that the constructed value
had not altered in the f i r s t five months of 1983.
 ---pagebreak---                                       - 3 -
 9.    Export prices for the whole of the updated investigation period were
       determined on the basis of the prices actually paid or payable, for
       exports of the product to the Community.
10.    The Soviet exporter continued to claim that a price allowance should be
       made for the alleged fact that Soviet nickel was sold in uncut form and
       that the costs in cutting the nickel to allow i t to be sold on the London
       Metal Exchange affected price comparability. In spite of several requests by the
       Commission to the exporter for specific and objective evidence in sub­
       stantiation of that claim, no such evidence was submitted.
                                       Thè exporter's      representative f i n a l l y stated
           that no such evidence would be submitted within the deadline                 h·   ‘ '
           and the Commission was consequently unable to allow the claim,
           the exporter   also failed to 'submit        substantiated details of its
           CIF costs which were consequently calculated by the Commission on
           the evidence available and not disputed by            the exporter.
    11.    All comparisons of the normal value with the export price were
           made at ex-works level.
           The comparison of normal value with export prices over the extended
           investigation period showed the existence of dumping in respect of
          nickel originating in the Soviet Union, hte margin of dumping being equal to the
           amount by which the normal value as established exceeded the price for
           export to the Community.
    - ■—   Those margins varied according to the date of transaction, the weighted-
           average margin being        52%.           -                  -----         ______ _
 ---pagebreak---                                      - 4 -
           E.      Injury                                             "■ !;..io>iw.·'·'■          ‘ r-
12.       More detailed and updated evidence is now available to the
           Commission concerning injury.               This shows that imports of nickel ,
    . i n t o the Community from the Soviet Union increased from 12 585
          tonnes in 1981 to 19 894 tonnes in 1982 and reached an estimated                                     '
        , 4 720 tonnes in the f i r s t five months of 1983 with a consequent
           increase in market share held by the Soviet Union from 9% in 1981 to 15%
          in 1982.        Indications given by the Soviet exporter were that                     in 1983
         the same quantities would be exported to the EEC as in 1982.
13. '       During 1982 the resale prices of Soviet nickel in the Community undercut the prices
           of the Community producers from 14 to 23% and were lower than those
           required to cover costs of Community producers and to provide a                              r'
           reasonable p r o f i t .                                                                        -
            No evidence was found that the prices of Soviet nickel in the Community
            undercut the prices of Community producers in the
           f i r s t 5 months of 198^. though Community producers' prices remained at
           a very depressed level.
                                                                   }                    r ■' ' '
 14.       Production of the Community               industry f e l l by
           56%                      between 1981 and 1982.           Production during the f i r s t
     five months           of 1983 showed some increase but remained below the level
  1·       of 1981.       The capacity u t i l i s a t i o n of the companies concerned
   ■::··. decreased by more than 40'% from 1981 to 1982, recovered in the f i r s t
            5 months of 1983 for one company                 to a level s lig ht ly above the 1981
       . level         but decreased further to a very low level for the second company.
            EEC sales of Community producers decreased by 28%                        from 1981 to 1982
            and were further decreasing in the f i r s t 5 months of 1983.                                   s
 15.      EEC producers lost 4% of the market from 1981 to 1982 and experienced
          a further loss of market share in the f i r s t four months of 1983.                         Their
          weighted average prices also decreased from 6 to 36% in the same period.
          The companies' losses were higher in 1982 than in 1981 and the rate of
           loss increased further in 1983.                 Investments decreased over the last
          three years.        The numbers employed in the Community industry decreased
          by 22% between 1981 and 1982 and continued to decrease in 1983.
 ---pagebreak---                                         - 5 -
16- The Soviet exporter claimed that there was no substantial                     '’
    Community industry and that the Commission had taken account of extra-
    Community production in its provisional assessment of injury.                   That
    claim could not be accepted since the assessment of injury was based
    on production of the established Community industry in
    the EEC.
17. The Commission has considered whether injury has been caused by
    other factors such as the volume and prices of imports                made by other
    suppliers to the Community.                 In its provisional determination the
    Commission had noted that o f f i c i a l s t a tis tic s showed that the Soviet
    Union had been the largest single supplier to the Community in 1981
    and 1982 and had also been the price leader in those two years.
    Soviet exports had undercut the average export prices to the Community of the
    other suppliers by                       a   margin of 7% in 1982.
    I t was also noted tha t, in addition to the Soviet Union, there                  ^ s
    were seven other countries who exported more than 4 000 tonnes to the
    Community in 1982.
    However, in re-examining the situation for the extended investigation
    period the Commission                  established    that,        in spite of the
    fact that Soviet prices had continued to decline in the f i r s t five
    months of 1983 from their levels in 1982, those of other supplying
    countries had declined even further with the result tha t, according
    to o f f i c i a l s t a ti s t ic s , the Soviet Union was undercut by four
    other third countries.                 Soviet exports no longer undercut theexport
    prices to the Community of the other suppliers as they had in 1982 but
    exceeded the average price of a l l third country imports by a margin
    of 16%.
     In these circumstances, which have become clear only since the
     imposition of the provisional duty, i t is clear that i t is impossible
    to isolate the injury caused by USSR exports from the injury caused
 ---pagebreak---                                        - 6 -
     by other high-volume, low-priced exports of nickel to the Community.
     Therefore, the imposition of an anti-dumping duty against imports
    originating in the USSR alone is unjustified.
    E.    Cone lusion                v y;'        .· i        ■
                                                              =\                ,
18. The anti-dumping proceeding concerning imports of unwrought nickel,
    not alloyed, in the form of cathodes produced by ele ctro lysis, either
    uncut or cut into squares, originating in the Soviet Union, should be
    terminated and the security lodged for the amount of the
    provisional duty should be released.                                 ■"
19. One Member State raised objections to this course in the Advisory Committee.
  . HAS ADOPTED THIS REGULATION:                                 ^:     :         '!
                    :   <.·. ·■     Article 1                        ·'-" ; 1 ~
    The anti-dumping proceeding concerning imports of unwrought nickel,
    not alloyed, in the form of cathodes produced by elect ro lys is, either
    uncut or cut into squares, originating in the Soviet Union f a ll i n g
    within sub-heading ex 75.01 of the Common Customs T a r i f f , corresponding to
     NIMEXE      code ex 75.01—21^ is hereby terminated.
                                   Article 2
       The security             lodged       for the amount of the provisional duty
i      imposed in accordance with Articl e 1 of Regulation (EEC) No
       1613/83 shall be released.
                                   Article 3
      This Regulation shall enter into force on the day following its
      publication in the O ff ic ia l Journal of the European Communities.
      This Regulation shall be binding in its entirety and directly applicable
      in a ll Member States.
      Done at Brussels,                       For the Council