CELEX: 51978PC0397
Language: en
Date: 1978-07-31
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on kraft liner paper and board originating in the United States of America (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 397
Vol. 1978/0154
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(78)397 final
                                                 Brussels , 31 July 1978
                             Proposal for a
                        COUNCIL REGULATION   ( EEC )
         imposing a definitive anti-dumping duty on kraft liner
         paper and board    originating in the United States of
                                America                 .   .  t
                   ( submitted to the Council by the Commission )
C0MC78 ) 397 final
 ---pagebreak---                    Explanatory Memorandum
By Regulation ( EEC ) N° 511 / 78 of 7 March 1978 the Commission imposed a
provisional anti-dumping duty on kraft liner paper and board originating
in the United States of America .     This was extended with certain modi­
fications by Council Regulation ( EEC ) N° 1226 / 78 of 9 June 1978 whi.ch
applies until the entry . into force of an Act of the Council adopting
definitive measures or , at the Latest , until the expiry of a period of
three months beginning on 11 June 1978 .
Since the imposition of the duty the Commission 's services have " continued
their examination of this matter in collaboration with the Member States .
This included an on-spot investigation of the two major American
exporters plus two other American companies which had announced domestic
price increases in the United States market.'      '
The facts as finally estabLi shed show that there is .dumping and injury
and that the amounts secured by way of provisional duty should be defi­
nitively collected . These facts also show that the fair market prices
established by the provisional anti-dumping duty are currently justified
and should be used as the basis for the definitive duty .
In these ci r cumstances , the Commission submits the attached proposal for
a Council Regulation imposing' a definitive anti-dumping duty on kraft
liner paper and board originating in the United States of America and
providing for the definitive collection of the amounts secured by way
of provisional duty .
 ---pagebreak---                PROPOSAL FQR A COUNCIL, REGULATION ( EEC )
   imposing a definitive anti-dumping duty on kraft liner paper and board
                originating , in the United States of America         "
   THE COUNCIL OF THE EUROPEAN COMMUNITIES ,             .
   Having regard to the Treaty establishing the European Economic Community ,
   and in particular Article 113 thereof .
   Having regard to Council Regulation ( EEC ) N° 459 / 68 of 5 April 1968 on pro­
   tection against dumping or the granting of bounties or subsidies by countries
                                                                    (1)
   which are not members of the European Economic Community             , as last amended
                                      (2)
  by Regulation ( EEC ) N° 1411 / 77 , and in particular Article 17 thereof ,
■ Having regard to the proposal made by the Commission after hearing the
  opinions expressed in the Advisory Committee set up under Regulation ( EEC )
  N° 459 / 68 ,       '                                                   .
  Whereas the Commission has received a complaint submitted in the name of
 the Community liner board industry setting out evidence as to the existence s
 of the dumping of like products originating in various countries, as well as
 material injury resulting therefrom ;
 Whereas , since it appeared from the information received that the complaint was
 admissible and that defensive measures against dumping might " be necessary ,
 the Commission officially notified the representatives of the exporting
 countries and the importers and exporters known to be concerned , publi shed
 in the ..Official Journal of the European Communities of 17 December 1977 , of
 3 March 1978 and of 3 May 1978 notices of the initiation of enquiries concern­
                                                           (3 )
  ing imports of kraft liner originating in the USA             ,     Sweden , Finland,
 Austria , Portugal , Canada ^^ and the Soviet Union ^"^ and commenced an                 ,
 examination of the facts for alt the above-mentioned countries ;
 Whereas , since preliminary examination of the matter showed that there was
 dumping and since there was sufficient evidence of injury and the -interests of
 the Community called for immediate intervention , the Commission , by Regulation
 ( EEC) N° 511 /78 ^ imposed a provisional anti-dumping duty on kraft liner
 paper and board , originating in the United States of America , the period of
validity of which was extended -by Regulation ( EEC ) No 1226/78 (7 ) ;
 ( 1 ) OJ N° L 93 , 17.04.1968 , p. 1          ( 5 ) 0J N° C 105 , 03,05.1978 , p. 5
 ( 2) OJ N° L 160 , 30.06.1977 , p. 4          ( 6) 0J N° L 69 , 07.03.1978 , p. 9
 ( 3 ) OJ N° C 304 , 17.12.1977 , p. 3        ( 7 ) 0J N° L 153' 09.06.1978 ^ p. 1
 ( 4 ) 0J N° C    54 , 03.03.1978 , p. 2
 ---pagebreak---  Whereas , in order to examine the existence of dumping , the Commission
                                           *                   >         i
 compared the export prices to the Community with those prevailing on the
 domestic markets concerned ;
Whereas these compari sons were made at the ex-factory level / and in respect
                                                                                         ι
of sales made ait the same time , due allowance having been made , on their merits ,
for di fferences - in transport and ancillary costs , in the conditions and
                                        1    ;                             ■             ».
terms of sale , in duties and taxation and for other differences affecting
price comparability;'        .
  ■'     . v '                   :
Whereas this examination of the matter shows that dumping has taken place ,
the margin of which varies cons iderably ' depending on the exporting 'firm.and
thé date of the transaction ; .
Whereas , with regard to injury to the industry concerned , the evidence
available , to the Commission shows that imports into the Community of kraft
liner ' originating in the USA , Sweden , Finland , Austria , Portugal , Canada arid
the Soviet Union have increased from a level of approximately 1.1 million
tonnes in 1975 to 1.6 million tonnes in 1977 ;
Whereas the imports concerned represent a market share in the Community of
70% in 1975 and 80% in 1977 and consequently have a very considerable
influence on the market ;                 , .                       ,        '
Whereas the prices of these imports on the Community market have fallen con­
siderably , particularly in recent months , thus exercising a depressive
effect on the Community producers 1 prices ;                                    '■         (
Whereas this development has' taken place to the detriment of the Community          , s
industry, which is in a difficult situation , characterized by large unsold
stocks , the complete cessation- of production in one area of the Community with
consequent loss of 1 jobs , and short-time working for the personnel of the enter­
prises concerned , and by a reduction in profits or heavy losses for several of
the f i rms concerned .            >                                           .■
Whereas , therefore , the facts as finally established show that , due con­
sideration having been given to the other factors having a bearing on /the
situation of this industry , as , for example , the rather limited imports from
other sources and competition from substitutable products , the dumped imports
are causing and threatening to cause material injury to the Community
industry ;                     -
 ---pagebreak---    Whereas in the meantime voluntary undertakings to revise prices to levels
   considered satisfactory have been given on behalf of Swedish , Finnish ,
   Austrian , Canadian , Portuguese and Soviet Union exporters ; whereas those
   undertakings " have been accepted by the Commission , which , as a consequence,
   has decided to terminate the procedures in question .
   Whereas , in the circumstances , the interests of the Community render necessary
  the imposition of a definitive anti-dumping duty on imports of kraft liner
  paper and board originating in the United States of America and           the
  definitive collection of the amounts secured by way of provisional duty in
  respect of kraft liner paper and board of American 'origin ; : '
  Whereas , in order to ensure fair treatment of imports at different
  prices , the amount of the duty should be.the difference between the declared '
  price of the goods and their, fair market price in the United States of
  America brought up to a CIF Community frontier basis ,
       ' ■        s  ■                  "       1         '            1
  HAS ADOPTED THIS REGULATION :           N                                   '
                               Arti ele 1
                       I
      A definitive anti-dumping duty is hereby imposed on , kraft liner paper
 and board, falling within Common Customs Tariff subheading ex 48.01 C II and
 corresponding to NIMEXE codes 48.01-15 , 21 , 27 and 31 , originating in the '
 United States of America .
 The provisions in force for the application of customs duties shall apply
 in respect of this duty .
                               Art i c le 2
      The amount of such duty shall correspond to the difference between the
fair market price in the United States of America as set out below and the ^
free-at - frontier Community price , duty unpaid, per tonne net to the first
"importer ,                                                               •
    '       ■                    !                -
For the purposes of this Regulation , the fair market prices in the United
States of America brought up to a CIF Community frontier basis , duty unpaid,
are as fol lows :
 ---pagebreak---                                                                    Per tonne
Nominal weight 175 grams or more per square metre :                US$ 258
Nominal weight 150 grams or more and less than 175
grams per square metre :                                           US$ 268
Nominal weight less than 150 grams per square metre :              US$' 278
The above fair market prices :
- shall be reduced by 1% if payment is made immediately on receipt of the
  goods by the first importer in the Community ,
~ shall be net if payment is made within 30 days of the receipt of the
  goods by the first importer in the Community ,
- shall be increased by 1% for each subsequent 30 day period of credit­
                                                        .7'   ■            r •
Where prices are invoiced by reference          area , the fair market price per
100 square metres shall be ■calculated in accordance with the following
formula :                              '
        Fair market price in . US$ per tonne X nominal gram weight ,
                             per square metre
                                 10 000
The actual gram weight may vary by + 5% from the~nominal gram weight .; ,
                          '    Article 3
     1             '               '                               '
             ' •                              '
The amounts secured by way of provisional duty under the provisions of
Regulation ( EEC ) N° "511 /78 extended by Regulation ( EEC ) N° 1226 / 78 shall b
definitively collected to the extent that they do not exceed the rate of
duty fixed in this Regulation .
 ---pagebreak---                               - 5 -                          ' ■
                            Article 4
This Regulation shall enter into force on the day following its publication
in the Official Journal of the European Communities
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at
                                             For the Council