CELEX: 51989PC0429
Language: en
Date: 1989-09-12
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) EXTENDING THE ANTI-DUMPING DUTY IMPOSED BY REGULATION ( EEC ) NO 3651/88 TO CERTAIN SERIAL-IMPACT DOT-MATRIX PRINTERS ASSEMBLED IN THE COMMUNITY

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                   COM(89) 429 f i n a l
                                                                   Brussels,     12  September 1989
                                                Proposal f o r a
                                        COUNCIL REGULATION (EEC)
 extending the anti-clumping duty imposed by Regulation (EEC) No 3651/88
      to c e r t a i n s e r i a l - i m p a c t dot-matrix p r i n t e r s assembled i n the
                                                   Community
                                   (presented by the Commission)
 ---pagebreak---                              Explanatory Memorandum
1.    In November 1988 the Commission received a complaint from the
      Commission of European Printer Manufacturers, on behalf of Community
      producers of serial-impact dot-matrix printers (SIDM printers)
      alleging that a number of companies were assembling SIDM printers in
      the Community under the conditions referred to in Article 13(10) of
      Regulation (EEC) No 2423/881    and were accordingly circumventing the
      anti-dumping duty Imposed on SIDM printers originating in Japan.    An
      Investigation was opened by publishing a notice in the Official
      Journal of the European Communities2.
2.    The assembly operations concerned were carried out by the following
      companI es :
          Brother Industries Ltd., (United Kingdom)
          Citizen Manufacturers Ltd. (United Kingdom)
          Epson Telford Ltd. (United Kingdom)
          Epson Engineering S.A. (France)
          Fujitsu Espana S.A. (Spain)
          Matsushita Electronic Industrial Co. Ltd. (United Kingdom)
          NEC Technology Ltd. (United Kingdom)
      -   OKI Electric Industries Ltd. (United Kingdom)
          Selkosha (Europe) GmbH (Germany)
          Star MI cronies Manufacturing Ltd. (United Kingdom)
          TEC Elektronik GmbH (Germany)
3.    All companies referred to In the second paragraph were found to be
      related to or associated with the Japanese manufacturers whose
      exports of SIDM printers were subject to the definitive ant I-dumping
      duty.  Brother, Citizen, Fujitsu, Matsushita, OKI, Selkosha and TEC
      were found to have reached the required threshold of 40% of non-
      Japanese parts in value during the overall reference period and
      accordingly no measures are proposed for these companies.
   ^0J No L 209. 2.8.1988, p.1 .
   2
     0J No C 327, 20.12.1988, p. 8, p. 9-
                                                                             A
 ---pagebreak--- 4. The weighted average value of-Japanese parts used in the assembly
   operations of the remaining companies were found to be as follows:
   Epson France 62%, Epson UK 73%, NEC 68%, Star 98%.
5. Two of these companies, Epson France and Epson UK have reached the
   required level of non-Japanese parts before the end of the reference
   period and have offered undertakings to maintain or Increase these
   levels In the future.   These undertakings are considered acceptable
   and accordingly a duty should not be extended to printers assembled
   by these companies.
6. For the remaining companies, NEC and Star, It Is proposed that the
   ant I-dumping duty applicable to exports to the Community by their
   respective parent companies be extended to models assembled in the
   Community.   The level of duty proposed is a fixed amount per machine
   and amounts to 3fl ECU for NEC and 14 ECU for Star.
                                                                         Ac
 ---pagebreak---                                 - 1 -
                            Proposal for a
                      COUNCIL REGULATION (EEC)
extending the anti-dumping duty imposed by Regulation
(EEC) No 3651/88 to certain serial-lmpaot dot-matrix
printers assembled in the Community
THE COUNCIL OP THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Eoonomio 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
Eoonomio Community        and in particular Artiole 13(10)
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) In November 1988, the Commission received a
     complaint lodged by the "Committee of European
     Printer Manufacturers (EURO PRINT)" on behalf of the
     produoers of serial-impaot dot-matrix printers (SIDM
     printers) whose collective output represents a major
     proportion of Community production of the product in
     question.
1
 0J No L 209, 2.8.1988, p. 1.
                                                           /lA
 ---pagebreak---      The complaint contained sufficient evidenoe of the
     faot that, following the opening of the
     investigation concerning SIDM printers originating
     in Japan 2 ,   which led to the adoption of Council
     Regulation (EEC) No 3651/88 ,     imposing a
     definitive anti-dumping duty on imports of these
     products, a number of companies were assembling SIDM
     printers in the Community under the conditions
     referred to in Article 13(10) of Regulation (EEC) No
     2423/88.
     Accordingly, after consultation, the Commission
     announced, by a notice published in the Offioial
                                          4
     Journal of the European Communities ,     the
     initiation of an investigation under the said
     Article 13(10) concerning SIDM printers assembled in
     the Community by oompanies related to or associated
     with the following Japanese manufacturers whose
     exports were subjeot to a definitive anti-dumping
     duty:
     - Brother Industries Ltd
     - Citizen Watch Co Ltd
     - Fujitsu Ltd
     - Juki Corporation
     - Matsushita Eleotrio Co
     - NEC Corporation
     - OKI Eleotrio Industry Co Ltd
     - Seiko Epson Corporation
     - Seikosha Co Ltd
     - Star Mloronios Co Ltd
     - Tokyo Eleotrio Company
'OJ No C 111, 25.4.1987, p. 2.
3
 0J No L 317, 24.11.1988, p. 33.
4
 0J No C 327, 20.12.1988, p. 8.
 ---pagebreak---                                - 3 -
(2) The Commission so advised the companies concerned,
    the representatives of Japan and the complainants,
    and gave the parties directly concerned the
    opportunity to make known their views in writing and
    to request a hearing.
(3) All the companies concerned and the complainants
    made their views known in writing and requested and
    were granted hearings by the Commission.
(4) Following the opening of the investigation, it was
    established that no SIDM printers were assembled or
    produced in the Community by or on behalf of Juki
    Corporation.
(5) No submissions were made by purchasers of SIDM
    printers assembled in the Community. The Commission
    sought and verified all information it deemed
    necessary for the purpose of the assessment of the
    charaoter of the alleged assembly operations and
    carried out investigations at the premises of the
    following companies:
      - Brother Industries Ltd (United Kingdom)
      - Citizen Manufacturers Ltd (United Kingdom)
      - Epson Telford Ltd (United Kingdom)
      - Epson Engineering S.A. (France)
      - F u j i t s u Espafia S.A. (Spain)
      - Matsushita Electronic Industrial Co Ltd
        (United Kingdom)
      - NEC Technology Ltd (United Kingdom)
      - OKI Electronic Industry Ltd. (United Kingdom)
      - Seikosha (Europe) GmbH (Germany)
      - Star Micronics Manufacturing Ltd
        (United Kingdom)
      - TEC Elektronik GmbH (Germany)
 ---pagebreak---                            4 -
(6)  Furthermore, the Commission carried out an
     investigation at the premises of some suppliers of
     components to some of the companies involved.
(7)  The period of Investigation was from 1 July to
     31 December 1988.
    B.  Relationship or association with exporter
(8) All companies referred to in the fifth recital
    were found to be related to or associated with the
    Japanese manufacturers whose exports of SIDM
    printers were subject to the definitive anti-
    dumping duty Imposed by Regulation (EEC) No
    3651/88. In fact these companies were found to be
    wholly or partially owned subsidiaries of the
    Japanese manufacturers mentioned above.
                    C.  Production
(9) The Commission established that the assembly or
    production operations carried out by all the
    companies listed in the fifth recital had started
    or substantially inoreased after the opening of
    the anti-dumping investigation.
 ---pagebreak---                            5 -
(10) One of the companies declared that a part of the
     SIDM printers produced during the reference period
     had been manufactured by components imported from
     Japan after the initiation of the original anti-
     dumping investigation but before the introduction
     of the anti-dumping duty. It olaimed that these
     printers should not be taken into account in the
     overall amount of the printers manufactured during
     the reference period.
(11) The Commission does not accept this view, since
     Artiole 13(10) refers specifically to products
     assembled or produced in the Community and to the
     parts and materials used there in. Consequently,
     the overall amount of the SIDM printers actually
     produoed or assembled during the reference period
     was taken into account.
                       D.  Parts
(12) The parts were identified aooording to the
     provisions of Artiole 13(10) of Regulation (EEC)
     No 2423/88. It was requested by some companies
     that the Printed Cirouit Board (PCB) be considered
     as a composite item and consequently its value
     broken down into the values of its individual
     constituent parts. Other oompanies submitted that
     the PCB should be considered as a single part and
     accordingly its value be determined as a whole.
     The Commission, after detailed examination, deemed
     it appropriate, in line with previous practice,
     to consider the PCB, given the nature of its
     struoture, as a single part.
 ---pagebreak---                              - 6-
(13) As in previous oases, the value of the parts in
       question was generally determined on the basis of
       the companies' purohase prices of these parts when
       delivered to the faotories in the Community. The
       relevant value is that of the parts and materials
       as they are used in the assembly operations, i.e.
       on an into factory basis. In one case, it was
       established that the value supplied to the
       Commission for some parts imported from Japan
       corresponded to the parent oompany's purchase
       prioes in the Japanese market, adjusted to include
       the costs of transport and the customs duties
       paid. This method of calculating the value of the
       Japanese parts cannot be aocepted since it does
       not refleot a reasonable profit and selling
       expenses for the selling oompany and therefore
       appears to be influenced by the relationship
       between the seller (parent oompany) and the buyer
        (subsidiary oompany). Consequently an adjustment
       was made to take account of suoh elements.
(14) The origin of the parts was taken into aocount
       aooording to the provisions of Council Regulation (EEC)
        No 802/685.
(15) It was also requested by several companies that
        the oosts of production of certain items incurred
       by them in the Community be inoluded in the value
        of Community parts. Where suoh items constituted
        parts or materials within the meaning of Article
        13(10)(a) of Regulation (EEC) No 2423/88 and where
        suoh parts had aoquired an origin other than
        Japanese in conformity with Regulation (EEC) No
        802/68, the inclusion of such costs in the value
        of non-Japanese parts was considered appropriate.
50J No L 148, 28.6.1968, p. 1.
 ---pagebreak---                           - 7-
(16) For the following companies:
    - Brother
    - Citizen
    - Fujitsu
    - Matsushita
    - OKI
    - Seikosha
    - TEC
      the weighted average value of Japanese parts or
      materials for all models produced by them was
      found to be respectively such as not to exceed the
      value of all other parts or materials used by at
      least 50 %.
      Accordingly the anti-dumping duty cannot be
      extended to the SIDM printers assembled in the
      Community by those oompanies.
(17) For the other companies investigated the weighted
      average value of Japanese parts for all models
      produced was found as follows:
    - Epson Franoe     67 %
    - Epson UK         73 %
    - NEC              68 %
    - Star             98 %
                 E  Other Clroumstanoes
(18) Consideration was given to other relevant
      circumstances with regard to the assembly
      operations referred to above, in aocordanoe with
      Artiole 13(10)(a) of Regulation (EEC) No 2423/88,
 ---pagebreak---                           - 8-
(19) As regards these aspeots, the amount of research
     and development and technology applied within the
     Community was generally minimal and related merely
     to assembly.
                     F   CONCLUSION
(20) In view of the foregoing, it is concluded that the
     anti-dumping duty should be extended to certain
     SIDM printers assembled in the Community. The
     amount of the duty to be colleoted, which takes
     the form of a flat-rate duty for eaoh company, was
     calculated in a manner to ensure that it
     corresponds to the percentage rate of the anti-
     dumping duty applicable to the exporters in
     question, on the oif value of the parts or
     materials from Japan as established for the
     investigation period.
                    G   UNDERTAKINGS
(21) The oompanies against whioh protective measures
      are considered necessary have been informed of the
      essential faots and considerations on the basis of
     whioh the present measures have been proposed.
      Certain of these companies offered undertakings
      referring in particular to the attainment of a
      oertain proportion of parts originating in the
      Community. The undertakings offered by Epson
      France and Epson UK are considered acceptable by
      the Commission whioh is publishing a Decision to
      that effeot. The anti-dumping duty should
      accordingly not be extended to SIDM printers
      assembled in the Community by these oompanies.
 ---pagebreak---                             - 9 -
      The Commission will examine the acceptability of
      any further undertakings offered and proceed to
       the necessary verification as soon as it has been
      informed by the companies concerned that the
      conditions qualifying the present extension of the
      anti-dumping duty to assembled products have been
      removed. Satisfactory guarantees should also be
      given that these conditions would not recur in the
      future.
HAS ADOPTED THIS REGULATION:
                         Artiole 1
1.  The definitive anti-dumping duty imposed by
    Regulation (EEC) No 3651/88 on imports of serial-
    impact dot-matrix printers incorporating a print
    system by needles originating in Japan is hereby
    Imposed on serial-impaot dot-matrix printers
    inoorporating a print system by needles, falling
    within CN Code ex 8471 92 90, introduced into the
    commeroe of the Community after having been
    assembled or produoed in the Community by:
    - NEC Technology Ltd (UK)
    - Star Mioronics Manufacturing Ltd (UK)
2.  The rate of duty shall be as s e t out below per unit
    assembled or produced by the companies concerned:
    - NEC Technology Ltd (UK)                    30 ECU
    - Star Mioronios Manufacturing Ltd (UK) 14 ECU
 ---pagebreak---                               - 10 -
                            Article 2
1.   Parts and materials suitable for use in the assembly
     or production of SIDM printers by the companies
     referred to in Artiole 1(1) and originating in Japan
     can only be considered to be in free circulation in
     so far as they will not be used in the assembly or
     production operations referred to above.
2.   SIDM printers thus assembled or produced shall be
     deolared to the oompetent authorities before leaving
     the assembly or production plant for the
     introduction into the commerce of the Community.
     For the purposes of levying an anti-dumping duty
     this deolaration shall be considered to be
     equivalent to the deolaration referred to in
     Article 2 Of Council Directive 79/695/EEC6-
3.   The provisions in foroe concerning customs duties
     shall apply.
                            Artiole 3
This Regulation shall enter into foroe on the day of its
publication in the Offioial Journal of the European
Communities.
This Regulation shall be binding in its entirety and
direotly applicable in all Member States.
Done at Brussels,
                                      For the Council
^)J No L 205, 13.8.1979, p. 19.
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(89) 429 final
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