CELEX: 51996PC0125
Language: en
Date: 1996-03-26
Title: Proposal for a COUNCIL REGULATION (EC) extending the suspension of the definitive anti-dumping duty imposed on imports of certain types of electronic micorcircuits known as EPROMS (erasable programmable read only memories) originating in Japan

iV * Vr
                 COMMISSION OF THE EUROPEAN COMMUNITIES
•ir         -K
 *          *
                                                Brussels, 26.03.1996
                                                COM(96) 125 final
                                 Proposal for a
                       COUNCIL REGULATION (EC)
        EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTI-
    DUMPING DUTY IMPOSED ON IMPORTS OF CERTAIN TYPES
         OF ELECTRONIC MICROCIRCUITS KNOWN AS EPROMS
               (erasable programmable read only memories)
                          ORIGINATING IN JAPAN
                        (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                      Explanatory Memorandum
(1)        The Commission, by Decision (95/272/EC) of 15 July 19951 , suspended the
           definitive anti-dumping duty imposed on EPROMs originating in Japan for a
           period of nine months, as had been done before in the case of DRAMs
           originating in Japan and the Republic of Korea2 . This decision was adopted
          on the grounds that the market situation for the product in question had
          temporarily changed to the extent that injurious dumping no longer prevailed
          and that therefore, the anti-dumping duty could be suspended.
(2)       The Commission has examined the data available concerning the conditions
          on the Community market and found that, towards the end of the initial
           period of suspension of the anti-dumping duty, the EPROM market in the
          Community is still stable with demand outstripping supply. Sales prices are
           high and the financial performance of the Community industry is still
          favourable. Market forecasts indicate that such market situation would be
           sustained at least for the next 12 months.
           It appears reasonable, therefore, to assume that injurious dumping on the
           Community market would not recur if the suspension of the anti-dumping
           duty would be extended for a period of one year, i. e. until April 1997.
1
  O J N ° L 1 6 5 , 15.7.1995, p. 26
2
  O J N ° L 1 2 6 , 9.6.1995, p. 58
                                                   I
 ---pagebreak--- (3) The Commission has informed the complainant of its intention to propose to
    the Council the extension of the suspension of the above anti-dumping duty
    and has provided it with an opportunity to comment. The complainant has
    raised no objections with regard to such proposal.
(4) The attached draft Council Regulation contains more detailed information
    showing that the requirements contained in Article 14 (4) of Council
    Regulation (EC) No 384/96 for the extension of the suspension of the anti-
    dumping duty are met.
(5) As in the DRAM case, therefore, it is proposed that the Council decides to
    extend, for a period of one year, the suspension of the anti-dumping duty
    imposed on imports of EPROMs originating in Japan.
                                          3
 ---pagebreak---                         COUNCIL REGULATION (EC) N°...
                                    of
      EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTS-
    DUMPING DUTY IMPOSED ON IMPORTS OF CERTAIN TYPES
      OF ELECTRONIC MICROCIRCUITS KNOWN AS EPROMS
             (erasable programmable read only memories)
                           ORIGINATING IN JAPAN
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community,
   Having regard to Council Regulation (EC) N° 384/96 of 22 December 1995
   on protection against dumped imports from countries not members of the
   European Community^1) and in particular Article 14(4) thereof.
   Having regard to the proposal submitted by the Commission after consulting
   the Advisory Committee,
   Whereas:
0) OJN°L56, 6.3.96 p. 1.
 ---pagebreak--- (1) The Council, by Regulation (EEC) 577/91 (2), imposed a definitive anti-
    dumping duty on imports into the Community of certain types of electronic
    microcircuits known as EPROMs (erasable programmable read only
    memories) originating in Japan, and falling under CN codes
    8542 11 33, 8542 11 34, 8542 11 35 or 8542 11 36 for finished UV erasable
    EPROMs,
    ex 8542 11 38 for finished Flash E2PROMs,
    ex 8542 11 76 for OTPs,
    ex 8542 11 01 for wafers for all types of EPROMs and
    ex 8542 11 05 for dice and chips for all types of EPROMs.
(2) The Commission, by Decision (95/272/EC) of 15 July 1995(3), suspended the
    definitive anti-dumping duty imposed on EPROMs originating in Japan for a
    "period of nine months on the grounds that the market situation for the
    product in question had temporarily changed to the extent that injurious
    dumping no longer prevailed and that, therefore, the anti-dumping duty could
    be suspended for this period.
(2) OJ N° L 65, 12.3.91, p.1, as last amended by Regulation (EEC) No 2860/93, OJ L 262 of 21.10.93, p.1
(3) OJ N° L 165, 15.7.1995, p. 26
 ---pagebreak--- (3) On 8 October 1995 the Commission initiated an interim review'^ of the ,mti-
    dumping measures concerning EPROMs originating in Japan, pursuant to
    Article 11 (3) of Regulation (EC) 3283/94. This review is at present pending.
(4) As in the case of another type of electronic microcircuits, i.e. DRAMs<5), the
    Commission has, based on the information available on the market situation,
    in particular the sales reports of the exporters concerned, examined whether
    the conditions for extending the suspension of the anti-dumping duty are
    met. In particular, the available statistical information and the sales data
    which the Commission has obtained from the Community producers and all
    known Japanese exporters shows that, as the end of the initial period of
    suspension of the anti-dumping duty approaches, the EPROM market in the
    Community is still stable, with demand outstripping supply. Sales prices are
    high and the financial performance of the Community industry is still
    favourable. It was found that, in general, the market conditions described in
    recital (3) of Commission Decision (95/272/EC) have prevailed. Market
    forecasts indicate that such a market situation will be sustained at least for
    the next 12 months.
(4)  OJN°C262, 7.10.95, p. 9
(5) By Council Regulation (EC) N°399/96 (OJ N° L 55, p1.), the suspension of the anti-dumping
    duties applicable to imports of DRAMs originating in Japan and the Republic of Korea has
    been extended for one year.
 ---pagebreak--- (5) However, it is also considered that, in view of the cyclical nature of the
    EPROM market in the past, the current market situation might be followed by
    a market down-turn. This could result in a recurrence of injurious dumping
    and would again necessitate the application of anti-dumping measures. This
    consideration appears to be supported by the fact that significant additional
    production capacities have recently been established, in particular in Japan,
    and that, in addition, further capacities will be established in the near future.
    It is reasonable to assume that this increase in worldwide production capacity
    might aggravate a possible future market down-turn.
(6) In the light of the foregoing, it is considered appropriate to extend the
    suspension of the anti-dumping duty in question beyond the initial period of
    nine months, by a further period of one year, and it is considered unlikely that
    injurious dumping of EPROMs would recur on the Community market as a
    result of such extension.
(7) Therefore, in accordance with the provisions of Article 14 (4) of the
    Regulation (EC) 3283/94 the Commission informed the complainant of its
    intention to propose to the Council to extend the suspension of the above
    anti-dumping duty for a period of one year and has provided it with an
    opportunity to comment. The complainant raised no objections in this regard
 ---pagebreak--- (8)  In conclusion, it is considered that the requirements to extend the suspension
     of the duty concerned, pursuant to Article 14 (4) of Regulation (EC) N° 384/96,
     are met and that the suspension should therefore be extended for a period of
     one year.
(9)  The Commission will continue to monitor closely the development of the
     EPROM-market and the behaviour of individual market participants, as it has
     done so during the initial period of suspension. Should a situation arise in
     which injury to the Community industry would recur, the Commission will
     propose that the Council reinstate the above anti-dumping duty without delay.
(10) To this end, the obligation to submit reports on sales and prices pursuant to
     the undertakings will continue in order to enable the Commission to monitor
     the EPROM market. However, as previously stated, during the period of the
     extended suspension of the anti-dumping duty, the obligation to adhere to the
     minimum price provisions of these undertakings will be waived. The quarterly
     calculation and communication of such prices to these companies by the
     Commission will therefore be discontinued during this period.
(11) The Advisory Committee was consulted on the suspension of the anti-dumping
     duty and raised no objections.
       HAS ADOPTED THE FOLLOWING REGULATION
                                              %
 ---pagebreak---                                    Sole Article
(1) The suspension of the definitive anti-dumping duty imposed on imports of
    certain types of electronic microcircuits known as EPROMs (erasable
    programmable read only memories) originating in Japan by Council
    Regulations (EEC) N° 577/91 is hereby extended for a period of one year
    until 15 April 1997.
(2) This Regulation shall enter into force on the day following its publication in
    the Official Journal of the European Communities.
    Done at Brussels,
                                         _S
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(96) 125 final
                                              DOCUMENTS
EN                                                                        02 11
                                     Catalogue number : CB-CO-96-134-EN-C
                                                              ISBN 92-78-01864-3
Office for Official Publications of the European Communities
L-29S5 Luxembourg
                                            y{0