CELEX: 51981PC0207
Language: en
Date: 1981-04-21
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on vinyl acetate monomer 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 (81) 207
Vol. 1981/0076
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                            COM(81)207 final
                                                            Brussels , 21 April 1981
                                     Proposal for a
                            COUNCIL REGULATION ( EEC )
imposing a definitive anti-dumping duty on vinyl acetate monomer origi­
                  nating in the United States of America
              ( submitted to the Council by the Commission )
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 C0M(81 ) 207 final
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
      On' 20 November 1980 , by Regulation 2999 / 80(1 ), the Commission imposed
      a provisional anti-dumping duty , later extended by Counci I _ Regulation
      683 / 81(2 ), on exports of vinyl acetate monomer originating in . the United
      States of America . This duty was based on the findings made at US Industrial
      Chemicals Co which was at the time the only US producerfound to be dumping
      and which co-operated with the Commission 's investigation .
     This company offered an undertaking which was accepted by the Commission .
     Two other companies ( Ce'lanese Chemical Company , Inc . arid International
      Petroleum Sales Co , Inc .) which were' found not to be dumping were excluded
      from the application of this duty .                ' / '/ •         '       1
      Subsequent to the imposition of the provisional duty , one of the US exporter               ~
      ( Gantrade Corporation ) declared having an . interest in the proceeding .
     The Community producers claimed that , even greater price depression occurred
      in the second half of 1980 ,. that their market shares decreased even , further and
that account should be taken of the differences in quantities sold both , on -the US                '
      and on the EEC market . 1           "   >                 ■ ;  . -    .
      The facts as finally established for the final investigation period (.the second
      half of 1980)' .show that ,the exports made by Union Carbide Corporation , C'ebanese.
      Chemical Company Inc ., Gantrade Corporation and Phillips Petroleum Company were
      sold at dumped prices at margins                  1     _of 14,02% % , 12,92% % , 2,63 % and
      14,27% respectively . For other exporters , either unknown or uncooperative
v .   it was not possible to establish " that the dumping margin was less than 14,27% ..
      With respect to the injury caused to the EEC industry , it was found that imports
      increased by apprbximati vely 101 % when comparing 1980 with 1979 , that there was
      an increase in the market share of dumped . -imports from the US from 0% in               ■
             1979 to 22,7% .          ; t            ,i for the whole of 1980 and that this           '
      increase in imports was accompanied by a simultaneous sharp, decrease in the
      already depressed vinyl acetate monomer prices in the EEC , especially during the
      second half of 1980 .                      - .                     ./ /
i not be         –excluded that other US exporters will come forward to offer price un­
      dertakings prior to adoption of the Regulation . by the Council . On the basis .
   :   of these facts , the Commission therefore submits to the Council its proposal,
       for a Counci L regulation , imposing a definitive ant r-'dumping duty of ' 14,27 % '
       on vinyl acetate monomer originating in the United States of . America ,
        ( 1 ) 0J n° L 311 , 21.11.1980 , p. 3
         ( 2 ) 0J n° L 73 ,. 19.3.1981 , p. 3
 ---pagebreak---          frr                  C « :''o ii n >' „• Ss^v '"■fee Corp&r at i o - 3.-0  ymon
Carbide Coloration          for which the rates shall be                   12,92% ,
2,63 % and 14,02 % respectively , and excluding US Industrial Chemical
Co . from the application  of the duty . It is further proposed that the
amounts secured    way of provisional duty should be collected definitively .
                                                                  i
 ---pagebreak---                                                                       Proposal for a
  L 39 / 4                                              COUNCIL REGULATION (ESC)
  12-2.81                                     '               • .■ <.
                                   imposing a definitive anti-dumping duty on        V 1 ny t acetate monomer prig
                                                         nafing in the United States of America s • ■
                    THE COUNCIL OF THE EUROPEAN
                     COMMUNITIES,
                     Having regard to the Treaty establishing the European
                     Economic Community,
                     Having regard to Council Regulation (EEC) No
                     3017/79 of 20 December 1979 on protection against
                     dumped or subsidized imports from countries not
                     members of the European Economic Community ('),
                     and in particular Article 12 thereof.
                     Having regard to the r proposal submitted by the
                     Commission after consultation with ilhe Advisory
                     Committee set up under Article 6 of Regulation (EEC)
                     No 3017/79,       .
                    Whereas in June 1980 the Commission received a ;
                    complaint lodged by the European Council of
       , '  ,       Chemical Manufacturers' Federations (CEFIC) on .
                . -hebatf of manufacturers . account. r,g for all - of the ,
L 311 / 13          Community production of vinyl . acetate monomer;'
21 . 1 1 , 80       whereas the complaint contained evidence of the exist­
                    ence of dumping in respect of the like product •
                    originating in the United States 'of America, and of
                    fi.itcrial injury resulting therefrom ;                  i
                  • Whereas" the said information provided sufficient ;
                    evidence to justify initiating a ' proceeding .; whereas
                    the Commission accordingly announced, by a notice
                    published in the Official Journal of thr. European '
                    Communities {2), the initiation of a proceeding
                    concerning import^ of vinyl acetate monomer origin-?
                    iting in the United States of America, and
                    commenced an investigation of the matter at Commu- .
                    nity level ;
              ■ Whereas, for the preliminary              . invest iga'CI 00 /
                               the Commission compared export prices to
                 the Community with domestic prices on the US
                 market ; whereas, for these comparisons representative
                 or weighted' average ex-tactory prices were used for
                  1979 and the first six months of 1980, and accoun * ;
                 was taktn, where appropriate, of differences affcctin
                  price comparability, such as differences in quantities,
                 differences in conditions and terms of sale and differ­
                  ences in the level of trade ; whereas the Coiiinr! sr
                   ( 1 ) 0J No C 339 , 31 . 12 . 1979 , p „ 1
                   ( 2 ) 0J No C. 169 , 9.7.1980 , p. 2
 ---pagebreak---                                              _ ,  _
   established cn this oasis that virtually no dumping occurred in 1979
   but that for the first six months of 1930 exports of the product in question
   were dumped at a weighted average margin of 1 0,6%; whereas             there was sufficient
   evidence of injury resulting from their entry for consumption into the Community
and since the interests of the Community
/ called for immediate intervention in order to prevent further injury being
   caused during the proceeding , the Commi ssion, by Regulation ( EEC ) No 2999 / 80(3 ),
   imposed a provisional antidumping duty on vinyl acetate monomer originating
   in the United States of America ; whereas exports by three companies were
  excluded from the application of this duty               because no dumping was found with
   respect to two of them and because an acceptable                   undertaking to increase
  export prices was offered by the third company ;
  Whereas the period of validity of this provisional duty was extended for a
  period not exceeding two months by Council Regulation ( EEC ) No 683 / 81 ( 4 );
   whereas, in the course of the subsequent examination
  of the matter, completed after the imposition of the
  provisional anti-dumping duty, the interested parties
  had the opportunity to make known their views in
  writing, to be heard by the Commission and to
  develop their views orally, to 'nspect non-confidential
  information relevant to the defence of their interests
  and to be informed of the essential facts and considera­
  tions on the basis of which it was intended to make a
  final determination ; whereas the complainants and
  most of the exporters and importers concerned availed
  themselves of these possibilities by making known
  their views in writing and orally ;
   Whereas one further exporter , Gantrade Corporation ( New Jersey ), came forward
     and offered to provide information on normal value and export prices ; whereas
     the Commission          after a careful analysis of the information available
     decided to carry out inspections at the premises of Union Carbide Corporation
     ( Connectitut ) , Celanese Chemical Company , Inc . ( Texas ) and Gantrade Corporation
     ( New Jersey )^ Whereas Phillips Petroleum Company ( Oklahoma ) did not consider
     an on-spot investigation to be necessary because it did not wish to claim
     any allowance with respect to its normal value ;
     ( 3 ) 0J No L 311 , 21.11.80 , p. 13
     ( 4 ) 0J No L 73 , 19.3,1981 , p. 3
 ---pagebreak---    Whereas , in seeking to' determine the existence of dumping the
    Commission compared the export prices to the Community with the
   normal value ;                                  -
   Whereas , since all companies concerned sold vinyl acetate monomer on th
    US domestic market , normal value was established on the basis of their
    respective prices on the American market during the last six months
   of 1980 , the most recent period for which full information could be
   verified and which seemed to be representative given the worsening -
   of the situation during the second half of 1980 ; whereas for those com­
panies    which negotiate prices on a quarterly basis certain months were
    selected , verified and agreed with the companies concerned to be
    representative for this six months period ;
                             ,     .           whereas , after discussion
   and in agreement with the companies concerned, sales to a certain
   number of customers were considered to be representative for the "
   purpose of calculating the normal value ;                           '
                              ~              %
         however .     . ' '                            :■
  Whereas /certain sales were excluded from     this v ;         calculation
  as they were not considered to have been made in t;he ordinary course
  of trade or did not permit a proper comparison, either because they
  involved special processing arrangements or because the volumes
  involved were not on a comparable basis ;
 ---pagebreak---   Whereas export prices were determined for the same period on the
  basis of prices actually paid or payable for the product concerned
  sold for export to the Community ;
  Whereas the comparisons were madeon a month by mont h , transact ion by
  transaction , ex-factory or , where . applicable , FOB basis for all of
  the companies visited ;
 Whereas the Commission also took account of                     bona fide  differences
 affecting price comparability with respect to variable distribution
 and selling costs and of payment conditions^where appropriate and
 where claims in these areas could be satisfactorily demonstrated ;                          *
Whereas subsequent to oral representations certain companies submitted
detailed information with respect to a few minor cost items which
was said to differ only marginally from information previously
submitted by them;'
                 lltrili ,    whereas
                              W l I Cl CCJD this
                                            LU    ,
             v information has not been taken into consideration because
the Commission 's services were no . longer in a position to verify it ;
                                       of dumping
  Whereas  the- examination/ showed that exports made during the investigation
      ■         i          ' ,                   weighted average    ,   ,     ..       ,
 period were dumped ; whereas the / dumping margins found were 14,02 % for
  Union Carbide Corporation , 12,92%                 for Celar.ese Chemical Company , Inc .,
 2.63 % for Gantrade Corporation , and 14.27 % for Phillips Petroleum
 Company ;
 ---pagebreak--- Whereas for brokers and exporters either unknown to the Commission or
who decided not to cooperate it was not possible to establish that
the dumping margin was less than .14 / 27% ;
Whereas , as regards the injury caused by the dumped imports to the
Community, the considerations which led to the imposition of the provisional
duty remain valid ;
Whereas further information received by the Commission after the imposition
of the provisional duty showed that imports into the EEC of the product
in question originating in the United States of America increased from
33,894 tonnes in the whole of 1979 to 40665 tonnes in the first half of
1980 and to 55,415 tonnes in the first three-quarters of. 1980 , estimated
to be an increase of approximately 101    % on an annual basis ;
Whereas the share of the free , i.e. non-captive , vinyl acetate market >
held by US imports amounted to 9.8 % in 1977 , to 16% in 1979 and
increased to approximately 32.3%in 1980 ; whereas the total' market share of
dumped imports increased fVom/^?. &% in the first six months of 1980,to
 23.9 % for th ^ second half of 1980 or22.7' % for the whole year ;
Whereas this increase in dumped imports was accompanied by a simultaneous
sharp decrease in the already depressed vinyl acetate monomer prices
in the EEC , especially during the second half of 1980 ;
 ---pagebreak---     Whereas the consequent impact of . the increased imports and Lower prices
accentuated       the .,   price depression and Led to/ further reduction
    of market shares held by the EEC producers from 89.5% in 1977 to
    83.1% in 1979 , to approximately 65.8% in 1980 ;     whereas , some Community
    producers have sharply reduced their, production Levels as a resuLt ; whereas
    others have tried to maintain remaining market shares by seLLing at
    ever Lower prices ;
    Whereas all Community producers are still forced to seLL at prices which
    are not sufficient to recover the increased costs and are unable to
    remedy this situation by means of using more product captiveLy ; whereas
    as a result , all producers are incurring Losses , some of which are
 ■ extremely high ;                                 '    ,                          - '
    Whereas the Commission has considered the injury caused by other factors
    which , individually or in combination , are aLso affecting the Community 1
    industry ; whereas it has determined in this context that the leveL of
  'demand and consumption in the Community is still reLativeLy stabLe in
    spite of certain market fluctuations ; whereas , moreover , the volume ,
   of non-dumped imports was reLativeLy , small compared to total imports ,
    and represented Less than 13.1%thereof in the Last haLf of 1980 or        29.6%
         . for the whole year ; whereas the infLuence of these non-dumped
    imports' on the vinyL acetate monomer market has been isolated from the
  . dumped imports ; whereas the substantial and sudden increase of imports "        ,
    of dumped vinyl acetate monomer since T977 and the prices at which they
    were offered for' , sale , in the Community Led the Commission to determine
    that the US exports of dumped vinyL acetate monomer       considered in isolation
                                                           ♦
    have caused material injury to the Community industry concerned ;
                                     v
    Whereas , in these circumstances , protection of the Community s interests .*■
    calls for the imposition of a definitive anti-dumping duty on vinyl acetate
 'monomer originating in the United States of America which , having regard
    to the extent of injury caused , should be equal to the dumping margins-
    found , . and for the definitive collection of the amounts secured by way
    of provisional duty in respect of the product concerned at the rate of the
    provisional duty ;                     '                       ' ' ~
 ---pagebreak---                                     _ 7 _
        Whereas prior to imposition of the provisional duty the Commission
        accepted the undertaking offered by US . Industrial Chemicals Co .;
reg L -                                          1                 *  V
ci 2999 whereas it is consequently appropriate to continue to exclude the
        imports of the products manufactured and exported by this company
        from the application of the duty ;          . '
                                           \          ι           ' λ
        HAS ADOPTED THIS REGULATION :
                                  Article    1
        1.  A definitive anti-dumping duty is hereby imposed on vinyl acetate
                                                 I.
        monomer falling within Common Customs Tari ff subheading ex 29.14 A II c ) 1
        and corresponding to NIMEXE code 29.14-32 / originating in the United
        States of America .                                             . . *
 ---pagebreak---       2.    The rate of the duty shall be 14,27x on the basis of the customs value
      determined in accordance with Council Regulation ( EEC ) no 1224 / 80 of
      28 May 1980 on the valuation of goods for customs purposes ( 1 )
  3 . Notwithstanding paragraph 2 above ,
                Vfor Celanese Chemical Company       the rate shall be .  ;
12,92%for Gantrade Corporation the rate shall be 2.63% ; and for
      Union Carbide Corporation         the rate shall be   14,02 % .
  4.   The provisions in force       for the application of customs duties shall
  apply to this duty .
                               Art i c le 2
  The definitive anti-dumping duty imposed by Article 1 shall not apply to
  vinyl acetate monomer exported by US Industrial Chemical Co .
      ( 1 ) 0J no L 134 , 31.5.1980 , p. 1
 ---pagebreak---                                  9
                            Article  3
The amounts secured by way of provisional duty pursuant to Regulation
( EEC ) No 2999 / 80 shall be definitively collected , -
                            Article  4
This Regulation shall      .enter into force on the day 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 ,                  1981                 For the Council
                                                         The President