CELEX: 51998PC0027
Language: en
Date: 1998-01-23
Title: Proposal for a Council Regulation (EC) amending Regulation (EC) No 3359/93 as far as anti-dumping measures on certain imports of ferro-silicon originating in Brazil are concerned

COMMISSION OF THE EUROPEAN COMMUNITIES
                                               Brussels, 23.01.1998
                                               COM(1998) 27 final
                                               98/ 0019 (ACQ
                                Proposal for a
                      COUNCIL REGULATION (EC)
amending Regulation (EC) No 3359/93 as far as anti-dumping measures on certain
          imports of ferro-silicon originating in Brazil are concerned
                       (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                EXPLANATORY MEMORANDUM
 In September 1996, the Commission, after consultation within the Advisory Committee,
 initiated an interim review concerning the anti-dumping measures currently applicable to
 imports of ferrosilicon made by one Brazilian exporter. The review had been requested
 by the exporter and is limited to the aspects of dumping.
 In October 1996 a second Brazilian exporter was included in the scope of the interim
 review, following a corresponding request of the exporter concerned.
The investigation carried out in the framework of the interim review has led to a finding
of no dumping and a cic minimis dumping margin, respectively, for the two exporters
concerned.
Therefore, it is proposed to repeal the anti-dumping measures cun'ently applicable to the
two Brazilian exporters concerned.
The repeal should be made through the attached Council Regulation which amends the
Council Regulation introducing the measures in force, i.e. Council Regulation (EC) No
3359/93, published on 9 December 1993 and imposing amended anti-dumping measures
on certain imports of ferro-silicon originating in Russia, Kazakhstan, Ukraine, Iceland,
Norwav. Sweden, Venezuela and lirazil.
 ---pagebreak---                           Council Regulation (IT) No        /97
                                           of....
  amending Regulation (EC) No 3359/93 as far as anti-dumping measures on certain
              imports of ferro-silicon originating in Brazil are concerned
       THE COUNCIL OF THE EUROPEAN UNION,
       Having regard to the Treaty establishing the European Community,
       Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on
       protection against dumpetl imports from countries not members of the European
       Community1, as amended by Regulation (EC) No 2331/96% and in particular
       Article 11(3) thereof.
       Having regard to the proposal submitted by the Commission after consulting the
       Advisory Committee,
       Whereas:
1
   OJNoL56, 6.3.1996, p.1.
2
    OJNoL317,6. 12. 1996, p. 1.
 ---pagebreak---                                      A. PROCEDURE
                                 1. Previous investigations
 (1) Anti-dumping measures on imports of ferro-silicon originating in Brazil have been
      in force since 19X7 when definitive anli-dumping duties were imposed on these
      imports by Regulation (EEC) No 3650/87-*, with the exception of imports from
      certain exporters for which either no dumping was found or undertakings had been
      accepted by the Commission^.
 (2) Subsequently, in May 1990^ and in May 1992", two interim reviews of the
      measures covering dumping and injury were initiated at the Commission's initiative
      and at the request of the Community industry respectively. As a result of the most
      recent of these reviews the definitive anti-dumping duty which is the subject of the
      present investigation was imposed in 1993 by Council Regulation (EC) No
      3359/93 7 .
3
    OJ No L 343, 5.12.1987, p. 1
4
    OJ NoL 219, 8.8.1987, p. 24
5
    OJ No C 109, 3.5.1990, p.5
6
    OJ No C 115, 6.5.1992, p.2
7
    OJ No L 302, 9.12.1993, p. 1. Regulation amended by Council Regulation (EC) No 2238/94
    (OJ No L 240, 15.9.1994, p. 28) and Council Regulation (EC) No. 1171/95 (OJ No L 118,
    25.5.95, p.7)
 ---pagebreak---                                    2. Present investigation
 (3) On 4 July 1996 the Brazilian exporter Companhia Brasileira Carbureto de Calcio
      lodged a request for an interim review of the anti-dumping measures applicable to it
      limited to the aspects of dumping, pursuant to Article 11 (3) of Council Regulation
      (EC) No 384/96 (hereinafter referred to as the Basic Regulation). The request
      alleged that the continued imposition of the anti-dumping duties on its exports to the
      Community was no longer necessary to offset dumping since its export prices were
      substantially higher than those established in the investigation leading to the
      existing measures.
      Having determined, after consultating the Advisory Committee, that sufficient
      evidence existed for the initiation of an interim review, the Commission published a
      notice of initiation^ and commenced an investigation.
  (4) following the initiation of the review, the Commission received on 7 October 1996
      a request from another exporter in Brazil, Cia. de Ferro Ligas da Bahia-Ferbasa, for
      its inclusion in the scope of the interim review. This company alleged that the
      continued imposition of the anti-dumping measures was no longer necessary to
      offset dumping since its present export prices increased to a level far higher than its
      normal value during the period between June 1995 to June 1996.
8
     OJ NoC 85, 28.9.1996, p. 15
 ---pagebreak---      Based on the evidence provided by the company, die Commission decided, after
    coiisiillalinj', the Advisory Commillee, to accept ils request and lo include it in the
    scope of the interim review.
(5) The Commission officially advised the representatives of the exporting country of
    the initiation of the interim review and gave all parties directly concerned the
    opportunity to make their views known in writing and to request a hearing.
(6) The Commission sent questionnaires and received detailed information from the two
    Brazilian exporters concerned.
(7) The Commission sought and verified all information it deemed necessary for the
    purpose of a determination of dumping and carried out investigations at the premises
    of the two following Brazilian exporters:
    ( 'in. Brasileira ( 'arhurclo de ( 'alcio, Sanlos Dumonl (Minas durais)
    Cia. de Ferro Ligas da Bahia(Ferbasa), Pojuca (Bahia)
(8) The investigation of dumping covered the period from 1 September 1995 to 31
    August 1996 ("the investigation period").
 ---pagebreak---                  B. PRODUCT UNDER CONSIDERA TION AND LIKE PRODUCT
                                     1. Product description
  (9) The product under consideration is the same as in the regulation subject to review,
       i.e. ferro-silicon containing between 20% and 96% of silicon by weight. The product
       is used as a deoxidizer in steel manufacture and as an alloying component for high
      temperature steel alloys and sheet metal.
                                         2. Like product
  (10) It was established that the ferro-silicon sold on the Brazilian market and the ferro
        silicon exported from Brazil to the Community by the two companies concerned
        was identical or closely resembling in terms of physical characteristics and end
        uses. Therefore, all these products were considered a like product in accordance
        with Article 1(4) of the Basic Regulation.
'%•?•
 ---pagebreak---                           C. NORMAL VALUE AND EXPORT PRICE
(11) In accordance with Article 2(2) of the Basic Regulation, normal value was
     established on the basis of sales prices ol" ferro silicon on the Brazilian domestic
     market since the domestic sales by each of the two Brazilian exporters concerned
     exceeded 5% of their respective export sales to the Community, For one exporter all
     its domestic sales were used in the calculation of normal value since all these sales
     were found to be profitable. For the other exporter only the profitable sales were
     used in establishing normal value since the number of domestic sales below unit
     costs constituted more than 20% of the total domestic sales, in accordance with
     Article 2 (4) of the Basic Regulation. The profitable sales of this second exporter
     represented more than 10% of its total domestic sales.
(12) Export price was established by reference to the prices actually paid for the ferro-
     silicon sold for export to independent buyers in the Community, in accordance with
     Article 2 (8) of the Basic Regulation.
 ---pagebreak---                                      I). COMPARISON
(13) The weighted average normal value was compared to the weighted average export
     price of all export transactions to the Community, in accordance with Article 2(11)
     of the Basic Regulation. The comparison was made on an ex-factory basis and at the
     same level of trade. For the purpose of ensuring a fair comparison, account was
     taken, in accordance with Article 2 (10) of the Basic Regulation, of differences in
     factors which were claimed and demonstrated to affect prices and price
     comparability, i.e. transport, handling, indirect taxes and credit expenses.
                                E. DUMPING MARGINS
(14) The comparison as described above showed no dumping for Cia. Brasileira
     Carbureto de Calcio and a - de minimis - dumping margin of 0,4% for Cia. dc Ferro
     Ligas da Bahia (Ferbasa).
 ---pagebreak---                                 /'. REPEAL OF MEASURES
( 15) In view of the findings of no dumping and respectively a de minimis dumping margin
      for the two Brazilian exporters concerned and as this situation is not considered to be
     of a short-term nature, measures imposed by Regulation (EC) No 3359/93 on exports
     of these companies should be repealed by amending that Regulation accordingly.
(16) The Commission informed the two Brazilian exporters and the liaison committee of
     the European ferro-alloy industry (Euro Alliages) of the facts and considerations on
     the basis of which it was intended to propose the repeal of the measures. No
     comments were received.
HAS ADOPTED TIMS REGULATION:
 ---pagebreak---                                               Article 1
   In Article I (2) of Council Regulation (EC) No 3359/93 the figures of 9,2% and 22,8%
   given as the rales of duly applicable to the Brazilian companies Cia Brasileira Carbureto
   de ( aleio, Rio tie Janeiro, and Cia de Ferro Ligas da Bahia (Ferbasa). Pojuea. Bahia,
   respectively, shall be replaced by the figure "(),()%" (additional Tarie codes: Cia.
   Brasileira Carbureto de Câlcio: 8729; Cia de Ferro Ligas da Bahia, Ferbasa: 8730)
                                            Article 2
   This Regulation shall enter into force on the day following its publication in the Official
   Journal of the European ( 'ommunities.
I'his Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,        1997
                                                                                              10
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(98) 27 final
                                              DOCUMENTS
EN                                                                     02 11
                                    Catalogue number : CB-CO-98-029-EN-C
                                                              ISBN 92-78-30281-3
Office for Official Publications of the European Communities
I ,-2°85 I Aixembourg
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