CELEX: 51992PC0200
Language: en
Date: 1992-05-20
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2200/90 by imposing an additional anti-dumping duty on imports of silicon metal originating in the People' s Republic of China

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             C0M(92) 200 final
                                            Brussels, 20 May 1992
                               Proposal for a
                          COUNCIL REGULATION (EEC)
      amending Regulation (EEC) No 2200/90 by imposing an additiona
       anti-dumping duty on imports of silicon metal originating in
                      the People's Republic of China
                       (presented by the Commission)
 ---pagebreak---                                           - 2 -
                                EXPLANATORY MEMORANDUM
1. By   Council   Regulation      (EEC)   No    2200/90,    an   anti-dumping     duty   of
   ECU 198 per tonne was imposed on imports of silicon metal originating in
   the People's Republic of China.
2. Subsequently, the Commission received a complaint lodged by the Liaison
   Committee of Ferroalloy Industries in the European Community. Since this
   complaint contained sufficient evidence that the duty had been borne by
   the    exporter,     the    Commission      announced      the    initiation     of   an
    investigation,    provided     for   in   Article    13(11)    of   Regulation    (EEC)
   No 2423/88,    in   a  notice     published    in   the   Official     Journal  of   the
   European Communities on 18 October 1991.
3. In the    absence of     satisfactory     cooperation      from   both   exporters   and
   Community importers, the Commission was obliged to reach its findings on
   the basis of the facts available. In this case, customs statistics were
   considered to be the fairest source of facts and the prices revealed by
   the relevant statistics were corroborated by the                 information obtained
   from    those    Community       importers     who    cooperated       and   from    the
   representative of user industries.
4. It would    appear    that, by      reducing   their    prices    for   export   to  the
   Community after imposition of an anti-dumping duty, exporters of silicon
   metal   originating    in the People's Republic           of   China   have  borne   the
   anti-dumping duty.
5. The amount of absorption of duty was calculated on the basis of the
   difference between the import price of silicon metal originating                  in the
   People's    Republic     of   China     during    the    period     of   the   original
   investigation     and    the    import    price    during     the   period    following
   imposition of the anti-dumping duty. This came to a figure of 178%.
6. Given that the imposition of this duty had been considered to be in the
   Community's interest, it follows that a measure aimed at restoring the
   effect of the duty concerned is in the Community's interest.
 ---pagebreak---                                    - 3 -
7. In this case, since the decrease in the import price as a percentage of
   the amount of the ant i-dumping duty had been calculated at 178%, the
   anti-dumping duty has been borne completely. An additional    anti-dumping
   duty of an amount equal to the existing duty (ECU 198 per tonne) must
   therefore be imposed.
8. It  is therefore proposed  that  the Council  amend  Regulation   (EEC) No
   2200/90 and  impose a duty of ECU 396 per tonne on     imports of silicon
   metal originating in the People's Republic of China.
 ---pagebreak---                                         - 4 -
                                   Proposal for a
                              COUNCIL REGULATION (EEC)
        amending Regulation (EEC) No 2200/90 by imposing an additional
         anti-dumping duty on imports of silicon metal originating in
                           the People's Republic of China
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation        (EEC) No 2423/88 of 11 July 1988 on
protection against dumped or subsidized imports from countries not members
of  the European     Economic Community1,    and  in particular   Articles  12 and
13(11) thereof,
Having     regard   to   the   proposal   submitted   by   the  Commission    after
consultation     within   the  Advisory  Committee   as  provided   for under   the
abovementioned Regulation,
Whereas:
A.   PROCEDURE
     1.   By Council Regulation (EEC) No 2200/902, a definitive anti-dumping
          duty of ECU 198 per tonne was imposed on imports of silicon metal
          originating in the People's Republic of China.
    2.    The Commission received a complaint lodged by the Liaison Committee
          of Ferroalloy Industries in the European Community on behalf of all
          Community producers of silicon metal alleging that all or part of
          the anti-dumping duty had been borne by the exporters concerned.
1 OJ No L 209, 2.8.1988, p. 1.
2 OJ No L 198, 28.7.1990, p. 57.
 ---pagebreak---                                         - 5 -
   3.   Since the complaint contained sufficient evidence of absorption of
        anti-dumping    duty    by  an  exporter,  the   Commission     announced    the
        initiation of an      investigation provided     for   in Article     13(11) of
        Regulation (EEC) No 2423/88, in a notice published            in the Official
        Journal of the European Communities^.
   4.   The Commission officially advised the exporters and importers known
        to be concerned and gave the parties concerned            the opportunity     to
        make their views known in writing.
   5.   None of   the exporters and only three of         the   importers    concerned,
        accounting   for a fraction of      the total    imports, made     their   views
        known in wr i t ing.
   6.   Only one organization representing user         industries made comments.
   7.   None of the    interested parties requested       the Commission      to review
        Regulation    (EEC)    No   2200/90.   Moreover,    on   the    basis   of   the
        information   available,     the  Commission   did   not   find   that   changed
        circumstances     justified     the  need   for   such    a   review    on   the
        Commission's    initiative.
   8.   The   investigation    into absorption of the anti-dumping         duty by the
        exporters was     concerned    with   the  comparison      between the period
        1   January  1988    to   31 December 1988,   which    had   been   taken   into
        account   for calculation of      the anti-dumping     duty, and    the period
        starting   from   imposition of a provisional      anti-dumping     duty until
        publication of the notice of        initiation of an     investigation,     i.e.
        from 1 April 1990 to 30 September 1991.
3 0J No C 273, 18.10.1991, p. 20
 ---pagebreak---                                       - 6 -
B. PRODUCT
   9.   The product under     consideration   is silicon metal   falling within
        CN code 2804 69 00, as in the original procedure.
C. ABSORPTION OF THE ANT I-DUMPING DUTY BY THE EXPORTER
    I.  Existence of absorption of duty
   10.   In the absence of satisfactory cooperation from either exporters or
        Community importers, the Commission based its findings on the facts
        available in accordance with Article 7(7)(b) of Regulation (EEC) No
        2423/88.
   II.  A valid assessment of the import price of a raw material, such as
        the   product   concerned,  can  generally   be made  on  the  basis of
        customs statistics. In this case, moreover, the prices revealed by
        the statistics were corroborated by the information obtained from
        those     Community    importers    who   cooperated   and    from    the
        representative of user industries.
   12.  That information shows clearly that, following the imposition of a
        provisional anti-dumping duty on silicon metal originating         in the
        People's     Republic   of  China    by   Commission   Regulation (EEC)
                    4
        No 720/90 , the import price at Community borders (the cif price
        before payment of customs duties and anti-dumping duty) of silicon
        metal    originating    in  the   People's   Republic  of   China    fell
        considerably.
4 OJ No L 80, 27.3.1990, p. 9.
 ---pagebreak---                                      - 7-
   13.  In these circumstances, it would appear      that, by reducing their
        prices   for  export   to  the  Community   after  imposition  of  an
        anti-dumping duty, the exporters of silicon metal originating in
        the People's Republic of China have borne the anti-dumping duty
        either completely or partially.
   11.  Amount of absorption of duty
   14.  The amount of absorption of duty is calculated on the basis of the
        difference between the import price of silicon metal originating in
        the   People's Republic of China during the period 1 January 1988 to
        31 December 1988, the period of the initial investigation, and the
        import   price   during   the  period   following   imposition  of  a
        provisional  anti-dumping duty, from 1 April 1990 to 30 September
        1991.
   15.  Expressed as a percentage of the amount of duty, the amount of
        absorption as defined above came to an average monthly figure of
        178% for the period from 1 April 1990 to 30 September 1991.
        In view of    the extent of absorption, the effect     of  a possible
        variation in the cif costs (cost, insurance, freight) need not be
        taken into account.
D. OTHER FACTORS
   16.  The Commission has examined two additional factors which might have
        had a bearing on the evolution of the export price of silicon metal
        originating in the People's Republic of China.
 ---pagebreak---                                            - 8 -
   17.  Firstly, the organization representing user                industries alleged that
        the quality of the product concerned              justified a price       lower  than
        that of the same product originating             in other countries. Since this
        does not constitute a new fact           in relation to the situation at the
        time   of   the   original     investigation,       the    alleged   difference     in
        quality    cannot   justify     the   considerable       decrease    in  the   export
        price   of   silicon   metal    originating       in the     People's   Republic   of
        China    following    the     imposition      of    an    anti-dumping     duty.   In
        addition,    it has been established          that the difference between the
        export price to the Community of silicon metal originating                     in the
        People's Republic of China           and of     the same metal      originating    in
        other countries increased during the investigation period.
   18.  Secondly,    the organization       representing      user    industries   suggested
        that the decrease      in the import price of silicon metal              originating
         in the People's Republic of China could                be   linked  to an overall
        trend   in the market     for   imports of the product concerned            into the
        Community. However, examination of the customs statistics clearly
        reveals    a   considerable       fall    in    the    price    of   silicon    metal
        originating     in the People's        Republic     of   China   while   the   import
        price of the metal       from other countries           remained stable over      the
        same period.
E. COMMUNITY  INTEREST
   19.  The purpose of      the additional       anti-dumping       duty   provided   for  in
        Article 13(11) of Regulation (EEC) No 2423/88 is to compensate for
        the amount of the anti-dumping duty borne by the exporter.
   20.  The   Commission     has    no    reason     to    believe     that   the    findings
        concerning    Community    interest     expressed      in recitals     18 to 21 of
        Regulation (EEC) No 2200/90 need to be amended.
 ---pagebreak---                                          - 9 -
   21.  Moreover, given, firstly, that the absorption of an anti-dumping
        duty by the exporter cancels out            the effect of the anti-dumping
        duty and therefore prevents the removal of the injury suffered by
        the Community      industry, and, secondly, that the imposition of this
        duty   had   been   considered    to be    in the Community's       interest, a
        measure aimed at restoring the effect of the said duty is therefore
        in the Community's interest.
F. ADDITIONAL ANT I-DUMPING DUTY
   22.  Article    I3(11)(a)     of   Regulation     (EEC)   No   2423/88    limits   the
        additional      amount    to  strict     compensation     for   the   amount   of
        anti-dumping duty borne by the exporter which cannot, logically, be
        greater than the amount of the anti-dumping duty concerned.
   23.   In  this   case,     since  the    decrease    in  the    import   price   as  a
        percentage of the amount of anti-dumping duty has been calculated
        at   178%,    the   ant i-dumping    duty   has  been   borne    completely.   An
        additional     anti-dumping duty of an amount          equal   to the existing
        duty (ECU 198 per tonne) must therefore be imposed.
   24.  Since the anti-dumping duty currently           in force is fixed at ECU 198
        per tonne, an additional duty for the same amount must be imposed.
        For practical reasons, the imposition of this additional duty takes
        the form of an amendment to Regulation (EEC) No 2200/90. This does
        not constitute a modification of the anti-dumping duty within the
        meaning    of   Article    15(1) of     Regulation    (EEC)   No   2423/88   and,
        therefore, the expiry date of the anti-dumping duty, including the
        additional     duty,    remains    unchanged.    The    total   amount   of   the
        anti-dumping duty       imposed on imports of silicon metal originating
        in the People's Republic of China must, therefore, be ECU 396 per
        tonne,
HAS ADOPTED THIS REGULATION:
 ---pagebreak---                                     - 10 -
                                   Article 1
Article   1(2) of  Regulation (EEC) No 2200/90   is hereby  replaced by the
following:
"2.   The duty shall be ECU 396 per tonne of the imported product."
                                   Article 2
This Regulation shall enter    into force on the day following that of  its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
a I I Member States.
Done at Brussels,                                For the Council
                                                  The President
 ---pagebreak---                                            - 11 -
                                                                    ISSN 0254-1475
                                                              COM(92) 200 final
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