CELEX: 51995PC0128
Language: en
Date: 1995-04-05
Title: Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) Nº 3359/93 imposing amended anti-dumping measures on imports of ferro-silicon originating in Russia, Kazakhstan, Ukraine, Iceland, Norway, Sweden, Venezuela and Brazil

COMMISSION OF THE EUROPEAN COMMUNITIES
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                                              Brussels, 5.04.1995
                                              COM(95) 128 final
                               Proposal for a
                     COUNCIL REGULATION (EC)
                 amending Regulation (EC) N° 3359/93
 imposing amended anti-dumping measures on imports of ferro-silicon
          originating in Russia, Kazakhstan, Ukraine, Iceland,
                Norway, Sweden, Venezuela and Brazil
                      (presented by the Commission)
 ---pagebreak---                               Explanatory Memorandum
1.   By Regulation (EC) N° 3359/93 published in OJ L 302 of 9.12.1993, the Council
     imposed an amended anti-dumping duty of 25% on imports of ferro-silicon
     originating in Brazil, with the exception of imports from five exporters specifically
     mentioned which were subject to a lesser rate of duty.
2.   In that Regulation, the Council noted that the Commission would be prepared, as
     always, to carry out a review in the case of those companies which did not export
     during the investigation period, are not related to companies which did export during
     that period and which now intend to commence exporting to the Community (so-
     called newcomers).
3.    In March 1994, the Commission received an application for review of these
      measures from a Brazilian company, Libra Ligas do Brazil, which claimed to satisfy
      these criteria.
4.    In June 1994, the Commission initiated, according to Article 14 of Regulation (EEC)
      N° 2423/88, a partial review of Council Regulation (EC) N° 3359/93 (OJ C 165 of
       17.6.1994).
5.    Subsequently, another Brazilian company, Nova Era Silicon S.A., claimed also to be
       a newcomer and requested to be, and was, included in the review investigation.
6.    The investigation into dumping covered the period 1 July 1993 - 30 June 1994.
 7.    Since for both companies sales on the domestic market did not permit recovery of
       all costs, normal values were constructed.
 8.    Neither company had made export sales to the EC. Therefore, dumping margins-
       could not be established. However, an export price level could be established on
       the basis of each company's normal value at which dumping would not occur.
 9.    Therefore, the Commission proposes to impose a minimum price (variable) duty for
       each company based on its normal value.
 10.   Regulation (EC) N° 3359/93 should be amended accordingly.
 ---pagebreak--- Proposal for a
                                    Council Regulation (EC) N°
                                                of
                                amending Regulation (EC) N° 3359/93
      imposing amended anti-dumping measures on imports of ferro-silicon
                      originating in Russia, Kazakhstan, Ukraine, Iceland,
                                Norway, Sweden, Venezuela and Brazil
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) N° 2423/88 of 11 July 1988 on protection
against dumped or subsidised imports from countries not members of the European
Economic Community l, as last amended by Regulation (EC) N° 522/942, and in particular
Article 14 thereof,
Having regard to the proposal submitted by the Commission after consultations within the
Advisory Committee,
Whereas:
1 OJ N°L 209, 2.8.1988, p. 1.
2 OJ N° L 66, 10.3.1994, p. 10.
 ---pagebreak--- A.      PREVIOUS PROCEDURE
(1)     By Regulation (EC) N° 3359/93 3, the Council imposed an anti-dumping duty of 25%
        on imports of ferro-silicon falling within CN codes 7202 21 10, 7202 21 90 and ex
        7202 29 00 originating in Brazil, with the exception of imports from five exporters
        specifically mentioned which were subject to a lesser rate of duty.
(2)     In that Regulation, the Council noted that the Commission would be prepared, as
        always, to carry out a review in the case of those companies which did not export
        during the investigation period, are not related to companies which did export during
        that period and which now intend to commence exporting to the Community (so-
        called newcomers).
B.      REVIEW REQUEST
(3)     The Commission received an application for a review of the measures currently in
        force from a Brazilian company, Libra Ligas do Brazil claiming that it satisfied the
        criteria mentioned under recital 2.
 (4)    This company provided, on request, evidence of the facts alleged which was
         considered sufficient to justify the initiation of a review in accordance with Articles 7
         and 14 of Regulation (EEC) N° 2423/88 (hereinafter the basic Regulation).
         By a notice published on 17 June, 1994 4, the Commission, after consultation within
         the Advisory Committee, initiated a review of Regulation (EC) N° 3359/93 with regard
         to the company concerned and commenced its investigation.
 3 OJN° L 302,9.12.1993, p. 1.
 4 0 J N° C 165,17.6.1994, p. 13.
 ---pagebreak--- (5) Subsequently, another Brazilian company, named Nova Era Silicon S.A., made itself
    known to the Commission and requested to be included in the investigation according
    to the provisions of the above mentioned notice of initiation. Since this company was
    able to submit evidence that it had not exported the products concerned to the
    Community during the period of investigation but that it had the firm intention of doing
    so and was not related to or associated with any of the companies subject to the anti-
    dumping duty, the Commission decided to include it in the investigation.
(6) The product under investigation is the same as the one concerned in Regulation (EC)
    N° 3359/93.
(7) The investigation period set was 1 July 1993 to 30 June 1994.
C.  RESULTS OF THE INVESTIGATION
 1.  Newcomer qualification
(8) The investigation confirmed that the two companies, Libra Ligas do Brazil and Nova
     Era Silicon S.A., had never exported ferro-silicon to the Community. The Commission
    was satisfied that these companies intended to do so in the immediate future, as it
    was shown that potential customers had been contacted.
     In addition, it was found that these two companies had no link, either direct or
     indirect, with the exporters involved in the previous procedure and for which dumping
    was found.
    Accordingly, it is confirmed that the two companies concerned should be considered
     as "newcomers" and that a partial review of Regulation (EC) N° 3359/93 was
    warranted in so far as these two companies are concerned.
 ---pagebreak--- 2.    Dumping
(9)   Since the companies involved did not sell any ferro-silicon on the domestic market
      during the investigation period at prices which permitted recovery of all costs, normal
      value was determined for each company on the basis of the constructed value of the
      product concerned in accordance with Article 2 (3) (b) of the basic Regulation. This
      constructed value was computed on the basis of all costs, both fixed and variable, in
      the country of origin, of raw materials and manufacture, plus a reasonable amount for
      selling, administrative, other general expenses and reasonable profit. Selling, general
      and administrative expenses were calculated by reference to the expenses incurred
      for the sales of ferrosilicon on the Brazilian domestic market. An average profit of 6%
      on the      costs of production, necessary for long-term investment, was found
      reasonable to be applied . This rate was also used in the previous investigation with
      regard to the other Brazilian producers and can still be regarded as the profit that
      Brazilian companies can normally achieve on their domestic market.
(10) Since, it was established that the two companies concerned had not exported ferro-
       silicon to the Community during the investigation period, it was not possible to
      determine whether dumping existed in the absence of an export price.
 (11) However, the normal value established for each company gives decisive guidance on
       the export price level required in order to avoid dumping in the future.
 ---pagebreak--- D.   AMENDMENT OF THE REVIEWED MEASURES
(12) As the level of injury caused to the Community industry is higher than the dumping
     margin, the measures should be based on the dumping margin.
(13) Under these circumstances, the appropriate measure for the two companies
     concerned should take the form of a variable duty equal to the difference between the
     export price of a tonne of ferro-silicon net, free at Community frontier, not cleared
     through customs and a minimum price CI F Community frontier, where the export price
     is lower than this minimum price. This minimum price should be established on the
     basis of the normal value to which is added charges for inland freight, ocean freight,
     insurance and commission.
(14) Libra Ligas do Brazil and Nova Era Silicon S.A. were informed of the essential facts
     and considerations on the basis of which it was intended to propose the amendment
     of Regulation (EC) N° 3359/93 and were given an opportunity to comment.           The
     Commission also officially advised the complainants mentioned in the initial
     investigation.
     The Brazilian producers made their views known in writing which were taken into
     consideration where deemed appropriate.
 ---pagebreak--- (15) Accordingly, Regulation (EC) N° 3359/93 should be amended to allow for the
      imposition of a company-specific anti-dumping duty on imports of ferrosilicon
      manufactured by Libra Ligas do Brazil and Nova Era Silicon S.A. replacing the
      general anti-dumping duty of 25%.
      The duty should be equal to the difference between ECU 849 per tonne for Libra
      Ligas do Brazil and ECU 885 for Nova Era Silicon S.A. and the net, free at
      Community frontier price, before duty, where the latter is lower.
(16) Since this review is limited to including within the scope of the measures two Brazilian
      producers which have not previously exported to the Community, the measures
      contained in the aforementioned Regulation (EC) N° 3359/93 are not being amended
      or confirmed within the meaning of Article 15 (1) of the basic Regulation and
      consequently the date on which they are due to expire pursuant to this provision
       should remain unchanged.
HAS ADOPTED THIS REGULATION
                                            Article 1
The following subparagraph is hereby added to Article ) (2) of Regulation (EC) N° 3359/93,
following the end of the indent concerning ferro-silicon originating in Brazil:
       for ferrosilicon produced by Libra Ligas do Brazil and Nova Era Silicon S.A., the
       amount of the duty shall be the difference between the net free-at-Community-frontier
       price, not cleared through customers, where lower and:
             ECU 849 per ton for Libra Ligas do Brazil (additional taric code 8827)
             ECU 885 per ton for Nova Era Silicon S.A. (additional taric code 8828)"
 ---pagebreak---                                             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 all Member States.
Done at Brussels,
                                                   For the Council
                                                   The President
 ---pagebreak---                                                                  ISSN (054-1475
                                                          C0M(95) 128 final
                                                 DOCUMENTS
EN                                                                      02 11
                                     Catalogue number : CB-CO-95-136-EN-C
                                                             ISBN 92-77-87612-3
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