CELEX: 31978K0112
Language: en
Date: 1978-01-18 00:00:00
Title: Commission recommendation No 112/78/ECSC of 18 January 1978 imposing a provisional anti-dumping duty on imports of iron or steel coils for re-rolling, originating in Czechoslovakia and South Korea

21 . 1 . 78                         Official Journal of the European Communities                              No L 17/27
                            COMMISSION RECOMMENDATION No 112/78 / ECSC
                                                     of 18 January 1978
               imposing a provisional anti-dumping duty on imports of iron or steel coils for
                          re-rolling, originating in Czechoslovakia and South Korea
THE COMMISSION OF THE EUROPEAN                                   Community of the products increased globally from
COMMUNITIES,                                                     1 012 000 tonnes in 1974 to 1 015 000 tonnes in the
                                                                 first six months of 1977, imports originating in
Having regard to the Treaty establishing the European            Czechoslovakia and South Korea having risen from
                                                                 92 000 tonnes in 1974 to 92 000 tonnes in the first six
Coal and Steel Community, and in particular Articles
74 and 86 thereof,                                               months of 1977, and that, as a result, they have been
                                                                 able to acquire a market share of more than 16 % in
                                                                 total in the Community and nearly 3 % for imports
Having regard to recommendation 77/329/ECSC on                   originating in Czechosloavkia and South Korea in the
protection against dumping or the granting of boun­              market most concerned, that is the United Kingdom,
ties or subsidies by countries which are not members             and that, on the other hand, the Community steel
of the European Coal and Steel Community ('), as                 industry is in a crisis situation characterized by a
amended by recommendation No 3004/77/ECSC (2),                   reduction in the number employed from approxi­
and in particular Articles 15 and 19 thereof,                    mately 780 000 to 720 000 between 1974 and 1977 by
                                                                 short time working and that, as a result, the Commu­
After having heard the opinions expressed within the             nity steel industry recorded serious losses in most of
Advisory Committee provided for by recommendation                the firms concerned :
77/329/ ECSC,
Whereas the Commission has received a complaint,                 Whereas, in order to remedy this situation, the
submitted in the name of the relevant Community                  Commission has introduced, in particular, a system of
industry, setting out evidence as to the existence of            minimum prices (4) for sales within the Community
dumping of iron or steel coils for re-rolling, origi­            of certain steel products produced by the European
nating in Czechoslovakia, South Korea and certain                steel industry ;
other countries and material injury resulting there­
from ;
                                                                 Whereas, the import prices into the Community of.
Whereas the Commission has published basis                       products originating in Czechoslovakia and South
prices (3) based on the lowest normal prices or costs of         Korea are considerably lower than these minimum
production in the supplying countries where normal               prices and that such undercutting jeopardizes the
conditions of competition prevail, including the costs           equilibrium of the entire pricing system and causes or
of transport, insurance and customs duties ;                     threatens to cause material injury to the Community
                                                                 industry or to a major part of it ;
Whereas the prices of imports into the Community of
the products which are the subject of the complaint
have been compared with these basis prices ;                     Whereas immediate action has been requested by two
                                                                 Member States ;
Whereas a preliminary examination of the matter
based on this comparison shows that these products,
originating in Czechoslovakia and South Korea, are               Whereas, in the serious conditions being experienced
offered for import within the Community (the British             by the Community steel industry, the interests of the
and French markets) at prices lower than the basis               Community require immediate action ;
prices and that dumping has taken place, the margin
of which is constituted by this undercutting ;
                                                                 Whereas it is for the Commission, without prejudice
Whereas, with regard to injury to the industry                   to the results of the investigation opened in accor­
concerned, the evidence submitted to the Commis­                 dance with Article 1 1 of recommendation 77/329/
sion shows that, on the one hand, imports into the               ECSC, to decide promptly to apply provisional
                                                                 measures consisting of the imposition of a provisional
(') OJ No L 114, 5. 5. 1977, p. 6 .
(2) OJ No L 352, 31 . 12. 1977, p. 13.                           anti-dumping duty on imports of the products
(3) cf. Communication from the Commission of 31
    December 1977 concerning the basis prices of certain         (4) OJ No L 114, 5. 5 . 1977, p. 1 and OJ No L 352, 31 . 12.
    steel products (OJ No L 353, 31 . 12. 1977, p. 1 ).              1977, p . 1 .
 ---pagebreak--- No L 17/28                         Official Journal of the European Communities                              21 . 1 . 78
concerned originating in Czechoslovakia and South             tional upon the deposit of a security for the amount of
Korea, the rate of which corresponds to the difference        the provisional duty.
between the basis price published by the Commission
for this product and its price on importation into the
Community,                                                                            Article 3
                                                             This recommendation shall be notified to the Govern­
MAKES THE FOLLOWING RECOMMENDATION :
                                                              ments of the Member States and published in the Offi­
                       Article 1
                                                              cial Journal of the European Communities.
1 . A provisional anti-dumping duty is hereby                 It shall enter into force for each Member State on the
imposed on the following products originating in              date of its publication in the Official Journal of the
Czechoslovakia and South Korea :                              European Communities.
— Iron or steel coils for re-rolling,
                                                             Without prejudice to the provisions of Article 18 of
— Common Customs Tariff heading No 73.08,                     recommendation 77/329/ECSC, it shall apply until
— NIMEXE codes 73.08-01 to 73.08-49 .
                                                              the entry into force of an act of the Commission
2. The amount of this duty shall be equal to the              either adopting definitive measures or extending the
amount by which the effective price (basic price plus         provisional duty, and in any event for a maximum
extras) established by contract, free frontier duty-paid,     period of three months.                            *
is lower than the effective price (basic price plus
extras) published by the Commission for these
products.
                                                              Done at Brussels, 18 January 1978 .
3. The provisions in force for the collection of
customs duty shall apply to the collection of this duty.
                                                                                         For the Commission
                       Article 2
                                                                                        Wilhlelm HAFERKAMP
The entry of the products described in Article 1 for
consumption within the Community shall be condi                                              Vice-President