CELEX: 51994PC0018
Language: en
Date: 1994-02-03
Title: Proposal for a COUNCIL REGULATION (EC) imposing a definitive anti-dumping duty on imports of ferro-silicon originating in South Africa and in the People' s Republic of China

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(94) 18 final
                                                     Brussels. 03.02.1994
                                   Proposal for a
                         COUNCIL REGULATION (EC)
  imposing a definitive anti-dumping duty on imports of ferro-silicon originating
              in South Africa and in the People's Republic of China
                          (presented by the Commission)
 ---pagebreak---                            IXPLANATORY MEMORANDUM
1   By Regulation (EEC) No 2581/93, published in OJ No L 237 of 22 September 1993,
   the Commission imposed a provisional anti-dumping duty on imports of ferrosilicon
   originating in South Africa and the People's Republic of China.
2. The provisional anti-dumping duty was extended for a maximum period of two months
   by Council Regulation (EC) No 3371/93 In the meantime, the Commission has
   completed its investigation for the determination of definitive measures.
3. For the purpose of definitive findings, normal value and export price were established
   on the same methods as those used in the provisional determination of dumping. No
   new calculation adjustment was submitted by the interested parties. The comparison
   between normal value and export prices to the Community showed definitive dumping
    margins for the South African and Chinese producers ranging from 34.7% to 49.7%.
4.  As far as injury is concerned, cumulation of imports was questioned by South African
    producers.
    The effect of the imports should be analysed cumulatively, since the exports originating
    in South Africa and the People's Republic of China amounted to significant quantities
    of the like product, competed with the Community production and with each other and
    since the exporter's market behaviour was similar.
    No other facts relating to injury were put forward.
5.  With respect to Community interest, no new arguments other than those set out in the
    Commission Regulation were submitted.
6.  Provisional measures took the form of anti-dumping duties: these were imposed for all
    producers at the level of the dumping margins established since the level to remove
    injury was higher. No new arguments were put forward to contradict this approach.
    One South African company proposed an undertaking, which was not accepted because
    in previous cases undertakings had shown to be not appropriate.
    Accordingly, the following duties should be imposed:
    South Africa                                  47.4%
    Highveld-Rand Carbide                         34.7%
   People's Republic of China                     49.7%.
   In the case of South African companies which failed to cooperate, a duty based on the
   highest dumping margin found is proposed in order to avoid a bonus for non-
   cooperation being constituted and to prevent circumvention of the anti-dumping
 ---pagebreak---                                         Proposal for a
                              COUNCIL REGULATION (EC)
      imposing a definitive anti-dumping duty on imports of ferro-silicon originating
                   in South Africa and in the People's Republic of China
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European 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
Community 03 , and in particular Article 12 thereof,
Having regard to the proposal presented by the Commission after consultation within the
Advisory Committee,
Whereas:
A.   PROVISIONAL MEASURES
(1)    By Regulation (EEC) No 2581 /93 (2) , the Commission imposed provisional anti-dumping
     duties on imports into the Community of ferro-silicon originating in South Africa and
     the People's Republic of China and falling within CN codes 7202 2 1 1 0 , 7202 21 90 and
     ex 7202 29 00.
     By Regulation (EC) No 337l/93 (,) , the Council extended the validity of these duties for
     a period not exceeding two months.
B.   SUBSEQUENT PROCEDURE
(2)  Following the imposition of the provisional anti-dumping duty, one South African
     company requested and was granted an opportunity to be heard by the Commission and
     made its views known in writing.
(3)  The Commission continued to      seek and verify all information it deemed necessary for
     its definitive findings. The      parties were informed of the essential facts and
     considerations on the basis of  which it was intended to recommend the imposition of
     definitive anti-dumping duties   and the definitive collection of the amounts secured by
(i)
     OJ No L 209, 2.8.1988, p. I.
     OJ No L 237, 22.9.1993, p. 2.
(3)
     OJ No L 303, 10.12 1993, p I
 ---pagebreak---       considerations on the basis of which it was intended to recommend the imposition of
      definitive anti-dumping duties and the definitive collection of the amounts secured by
      way of a provisional duty. They were also granted a period within which to make
      representations subsequent to these disclosures.
C     DUMPING
1.    Normal value
(4)   For the purpose of definitive findings, normal value was established on the basis of the
      same methods as those used in the provisional determination of dumping. No new
      calculation adjustment was presented by the interested parties.
2.    Export prices
(5)   The method used to establish export prices, as set out in recitals (18) to (20) of
      Regulation (EEC) No 2581/93, is hereby confirmed, as no comments in this respect
      were made by interested parties.
3.    Comparison
(6)   The findings and conclusions set out in recital (21 ) of Regulation (EEC) No 2581/93 are
      hereby confirmed.
4.     Dumping margins
(7)    The definitive examination of the facts showed the existence of dumping in respect of
       imports of the product concerned originating in South Africa and the People's Republic
       of China.
 (8)   The weighted average dumping margins definitively established for each South African
       producer concerned and expressed as a percentage of the free-at-Community-frontier
       price of imports, duty unpaid, were as follows:
             Highveld Rand Carbide            34.7%
             Samancor                         47.4%.
 (9)   The weighted average dumping margin definitively established for the People's Republic
       of China and expressed as a percentage of the free-at-Community-frontier price of
       imports, duty unpaid, was 49.7%.
 D.    INJURY
 (10) Two South African producers questioned the Commission's decision to cumulate
       imports from their companies with the other imports from South Africa and the People's
       Republic of China.
 ---pagebreak---       It is hereby confirmed that the effects of the imports should be analysed cumulative^,
      since the exports originating in each of these countries amounted to significant quanta '.
      of the like product, since they competed with the Community production and with each
      other, and since the exporters' market behaviour was similar.
(11) The Commission concluded in its provisional findings, as set out in recitals (26) to (40)
      of Regulation (EEC) No 2581/93, that the Community industry had suffered material
      injury. No new facts concerning these findings were subsequently put forward in this
      connection.
      This conclusion is therefore confirmed.
E.    COMMUNITY INTEREST
(12) In the Commission's provisional findings on imports of ferro-silicon originating in South
      Africa and the People's Republic of China, as set out in recitals (41) to (48) of
      Regulation (EEC) No 2581/93, the interests of the Community industry, of the
      consumers and of other industries and activities concerned have been considered.
      No new arguments were put forward in this connection.
(13) Therefore, the findings of Regulation (EEC) No 2581/93 in this respect are confirmed.
  F.   UNDERTAKINGS
(14) One South African exporter proposed that any measures should take the form of either
      an undertaking or a minimum price duty. The monitoring of such a price undertaking
      has been shown in previous cases to be very complex and difficult for a product like
      ferro-silicon which is imported into the Community in forms containing different
      percentages of silicon which should be reflected in distinct price levels. The differences
       are, however, not discernible without technical analysis thus making any such
      undertaking potentially ineffective.
       Therefore, undertakings, or indeed minimum price duties which give rise to the same
       problems, can no longer be considered as an appropriate remedy for a product like ferro-
       silicon, as set out in recital (88) of Council Regulation (EC) No 3359/93(4). Furthermore,
       imports from other countries concerned by this product, namely Norway, Sweden,
       Iceland, Kazakhstan, Russia, Ukraine, Brazil, Venezuela and China, as well as from the
       other South African producers, are subject to ad valorem duties.
 (15) Given the above, it is concluded that measures should be imposed in the form of
       definitive ad valorem anti-dumping duties.
 (4)
       OJ No L 302, 9.12.1993, p I
 ---pagebreak--- G.    DUTY
(16) Provisional measures took the form of anti-dumping duties; these were imposed for both
      South Africa and China at the level of the dumping margins found, since the level
     necessary to remove injury was higher, as set out in recital (50) of Regulation (EEC)
      No 2581/93.
      No new arguments were put forward to contradict this approach. Therefore, duties
      should be established at the level of the dumping margins definitively determined in
      recitals (8) and (9) of this Regulation.
(17) In the case of South African firms which failed to cooperate in the investigation, the
      Commission considered in recital (52) of Regulation (EEC) No 2581/93 that the duty
      should be established on the basis of the facts available, in accordance with
      Article 7(7)(b) of Regulation (EEC) No 2423/88. In order not to reward non-cooperation,
      it was considered that the most reasonable facts were those established during the
      investigation and that there was no reason to believe that any duty lower than that
      corresponding to the highest margin of dumping found would be appropriate to take
      account of the effect of dumping by non-cooperating companies in South Africa.
(18) Accordingly, the following duties should be imposed:
            People's Republic of China                        49.7%
            South Africa, except Highveld - Rand Carbide 47.4%
            Highveld - Rand Carbide                           34.7%.
 H.    COLLECTION OF THE PROVISIONAL DUTIES
 (19) In view of the dumping margins established, the injury caused to the Community
       industry and of the latter's precarious situation, it is considerered necessary that the
       amounts secured by way of the provisional anti-dumping duty for all companies and the
       People's Republic of China should be definitively collected,
 HAS ADOPTED THIS REGULATION:
                                            Article 1
       A definitive anti-dumping duty is hereby imposed on imports of ferro-silicon containing
       between 20 and 96% of silicon by weight falling within CN codes 7202 21 10,
       7202 21 90 and ex 7202 29 00 (Taric code 7202 29 00*11) and originating in South
       Africa and in the People's Republic of China.
 ---pagebreak---       The rate of duty applicable to the net free-at-Community-frontier price, not cleared
      through customs, shall be as follows:
           49.7% for ferro-silicon originating in the People's Republic of China;
           47.4% for ferro-silicon originating in South Africa (additional Taric code 8733)
           with the exception of that produced by the company referred to in the third indent,
           34.7% for ferro-silicon originating in South Africa and produced by Rand Carbide,
           Division of Highveld Steel and Vanadium Corp. Ltd., Witbank (additional Taric
           code 8732).
                                           Article 2
The amounts secured by way of the provisional anti-dumping duty pursuant to Regulation
(EEC) No 2581/93 shall be definitively collected in full.
                                           Article 3
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 all Member States.
Done at Brussels,                                            For the Council
                                                             The President
 ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(94) 18 final
                                                      DOCUMENTS
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                                                             ISBN 92-77-64602-0
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