CELEX: 51983PC0710
Language: en
Date: 1983-11-22
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of certain glass textile fibres (rovings) originating in the German Democratic Republic and accepting undertakings and terminating the proceeding in respect of imports of certain glass textile fibre (rovings) originating in Czechoslovakia and Japan (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 710
Vol. 1983/0254
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
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 ---pagebreak---  C O M M ISSIO N OF THE EUR OPEAN C O M M U N IT IE S
                                         COM(83 ) 710 final
                                         Brussels, 22 November 1983
                     Proposal for a
                COUNCIL REGULATION (EEC)
  imposing a definitive anti-dumping duty on imports of
  certain glass textile fibres (rovings) originating in the
  German Democratic Republic and accepting undertakings and
  terminating the proceeding in respect of imports of certain
  glass textile fibre (rovings) originating in Czechoslovakia
  and Japan
             (submitted to the Council by the Commission)
COM(83 ) 710 final
 ---pagebreak---                                                     ■EXPLANATORY MEMORANDUM
.   On J u n e      15    1983,      by . R e g u la t io n     (E E C )   No 1 6 3 1 / 8 3 ( 1 )    th e    C o m m is sio n      im p o se d
    a p ro v is io n a l        a n ti-d u m p in g     d u ty on      im p o rts     of    c e rta in     g la s s    te x tile
  t f i b r e s ( r o v i n g s ) o r i g i n a t i n g i n C z e c h o s l o v a k i a , t h e German D e m o c r a t i c
    R e p u b lic and J a p a n .            Th e d u t y was e x t e n d e d f o r t w o m o r e m o n t h s b y R e g u l a t i o n
    (E E C ) N o . 2 8 7 6 / 8 3 ( 2 ) o f O c t o b e r 1 3 , 1 9 8 3 .              T h i s d u t y e x p i r e s on
    December 1 8 , 1 983.
2.  A fte r     th e    im p o s itio n      of   the     p ro v is io n a l    d uty     the    e xp o rte rs       in    C z e c h o s lo v a k ia
    and      th e   G er m a n    D e m o cra tic     R e p u b lic    and    c e rta in      im p o rte rs      re q ue sted        h e a rin g s
    d u rin g     w h ich    th e y    made t h e i r       vie w s    known.         They      s tro n g ly     c o n te ste d      the
    s e le c tio n     of    th e    US m a r k e t     as    the    a n a lo g u e   co un try      fo r    the     norm al       v a lu e
    d e te rm in a tio n .         T h e ir    main     argum ent        was t h a t      the    q u a lity      betw een       the
    pro du cts        is    q u ite    d iffe re n t.         The    C o m m issio n,       a fte r    c a re fu l     c o n s id e ra tio n
    of     th e   argum ents         put     fo rw a rd ,     a me nd e d t h e     p ro v is io n a lly       e s ta b lis h e d
    w e ig h te d     average        dum ping       m a rg in s    as    fo llo w s :       C ze c h o s lo v a k ia     56.03% ,
    German        D e m o c ra tic     R e p u b lic    62%.
    The p r o v i s i o n a l l y      e s ta b lis h e d     w e ig h te d   average         dum pin g      m a rg in     fo r    Japan
    re m a in e d     unchanged           (2 1 .2 5 % ).
3.  W ith      regard       to    th e    in ju ry    s u ffe re d     by t h e     Community          in d u s try ,      the     m ain
    argum ents               put     forw ard       by t h e      in te re s te d     p a rtie s     concerned           th e    lo s s e s
    c a rrie d      by    th e    Community p r o d u c e r s          and t h e      re s a le    p ric e s     of    th e    im p o rte d
    p ro d u cts      in to    the      C o m m u n ity .     A fte r    c a re fu l    e x a m in a tio n     of    th e    fa c ts     as
    fin a lly       d e te rm in e d     and     in   co nn e ction        w ith    the     c o n c lu s io n s    on    in ju ry      reached
    in     R e g u la tio n     (E E C )   No 1 6 3 1 / 8 3 ,                                                            the    in ju ry
    caused        by    d u m pe d    im p o rts    of    g la s s   te x tile      fib re s     o rig in a tin g        in    C z e c h o s lo v a k ia ,
    th e     German       D e m o cra tic      R e p u b lic    and    Japan,       taken       in   is o la tio n       from      th a t
    caused        by o t h e r      fa c to rs ,    has     to   be    co n side re d       as m a t e r i a l ; and        a c tio n     must
             be   ta ke n .
4.  S a tis fa c to ry       u n d e rta k in g s     were o f f e r e d       by   the     C z e c h o s lo v a k ia n    and      Japanese
    e xp o rte rs.          Th e   C o m m issio n,       a fte r    c o n s u lta tio n ,      co n sid e re d      th a t    the     under­
    ta k in g s    o ffe re d      are     a c c e p ta b le    and     the    p ro c e e d in g    co n c e rn in g      C z e c h o slo va kia
    and J a p a n      may,      th e re fo re ,      be    te rm in a te d .       Under       th e se     c ircu m sta n ce s         the
    a p p lic a tio n      of    th e    d u ty   s h o u ld    be    lim ite d     to    th e    G er m a n    D e m o cra tic       R e p u b lic .
    The     amount       of    th is     d u ty   s h a ll    be e q u a l     to   th e    amount       by     w h ich    th e    p ric e
    per     kg n e t     fre e -a t-C o rn m u n ity        fro n tie r,       b e fo re    d u ty,     is    le s s    than      1 .0 3    ECU.
     (1)      0J   No L 1 6 0 ,        1 8 .6 .19 8 3,     p.    18.
      (2)     OJ No L 2 8 3 ,          1 5.1 0.1 9 83 ,       p.   1.
 ---pagebreak---                                                              Proposal for a
                                                  COUNCIL REGULATION                ( EEC)
                                im p o sin g    a d e fin itiv e       a n ti-d u m p in g    d uty    on    im p o rts    of
                                c e rta in    g la s s   te x tile     fib re s     (ro v in g s )   o rig in a tin g      in
                                th e   G e r ma n   D e m o c ra tic   R e p u b lic   and    a c c e p tin g   u n d e rta k in g s
                                and    te rm in a tin g     th e   p ro c e e d in g   in   respect       of    im p o rts    of
                                c e rta in    g la s s   te x tile     fib re     (ro v in g s )   o rig in a tin g      in
                                C ze c h o s lo v a k ia   and    Japan
       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 (*), as amended by Regulation (EEC) No 1580/82 ("),
      and in particular Article 12 thereof,
      Having regard to the proposal submitted by the Commission after1
      consultation of the Advisory Committee set up under the above
      Regulation,·
Whereas:
A.    Provisional action
1.     The Commission, by Regulation (EEC) No 1631/83 (3),                                                      imposed a
provisional anti—dumping duty on imports                                           o f   certain glass textile fibres
(rovings) originating in Czechoslovakia,                                           the German Democratic Republic
and Japan and terminated the procedure concerning certain glass textr.i le
fibres (mats) originating in Czechoslovakia and the German Democrat, ie
R e p u b lic ,  no  in ju ry     h a vin g    been     caused      by   these      im p o rts    d u rin g    th e   p e rio d   under
re v ie w .     The d u t y   was e x t e n d e d     fo r   a m a x i mu m p e r i o d    of    two    m onths     by    R e g u la tio n
(EEC)     No.    287 6 /8 3    (4)    at   th e   re q ue st    of   the     e xp o rte rs    concerned.
(1)    OJ    No  L  339,    3 1 .1 2 .1 9 7 9 ,    p.   1.
 (2)   OJ    No  L  178,    22. 6 .1 9 8 2 ,       p.   9.
 (3)   OJ    No  L  160,    18. 6 .1 9 8 3 ,       p.   18.
 (4)   OJ    No  L  283,    1 5 .1 0 .1 9 8 3 ,    p.   1.
 ---pagebreak---                                                        -   2  -
 B.     Subseque nt p r o c e d u r e ________________
2.     Following the imposition of the provisional anti-dumping duty the
Czechoslovakian and the German Democratic Republic exporters,                                              certain
importers and Community producers concerned requested,                                            and were
granted,     an opportunity to be heard by the Commission.                                           Other exporters
and importers made written submissions making known their views on the
duty.
3.     The. exporters and main importers requested to be informed of
certain facts and essential considerations on the basis of which it
was intended to recommend definitive action and these requests were
granted.
    4.    The main arguments put forward by the parties and considered by
    the Commission since the imposition of the provisional measures
    concerned the comparability of the products involved and the injury
    Caused by the dumped imports.
    C.   Like product
    5.    It was argupd by the Czechoslovakian and German Democratic
    Republic exporters and several importers that the products in question
    originating in these two countries,                             the products manufactured                in the
    United States, which were used to determine the normal value,                                            and  the
    products manufactured by the,-Community pcQdupers were not like
    products within the meaning of Article 2 (12) of Regulation                                            (EEC)
    No 3017/79.       This argument was supported by a considerable amount of
    evidence such as technical comments,                              studies made by experts and
    letters from users of these products.                               The Community producers refuted
    this argument and provided evidence to demonstrate that the products
   were indeed like products within the meaning of the said Regulation.
    6.    The Commission,             after careful examination of all relevant argumen:
   concluded that as regards physical characteristics the products
   closely resembled one another and that,                                in a great majority of cases,
    they could be used for the same applications irrespective of the
   country of origin.                 Therefore,         the Commission concluded                      that they
   were like products, but granted certain allowances f o r quaLity
                      and d i f f e r e n c e s i n c o n d i t i o n s a n d t e r m s o f s a l e ,
   differences / Based on t h e information received these allowances
                                          were set at 10% for Czechoslovakia and 1s% for
   the German Democratic Republic.
 ---pagebreak--- D . Dumping
7.    Consequently the preliminary determinations of dumping should be
modified with respect to Czechoslovakia and the German Democratic
Republic.     The dumping margins now amount to 56,03% for Czechoslovakia
and 62% for the German Democratic Republic.
8.    No new evidence on dumping with respect to Japan has been received
since the imposition of the provisional duty and the findings on
dumping as set out in Regulation (EEC) No 1631/83 are therefore
considered to be definitive.
£- Injury
9.    With regard to the injury suffered by the Community   industry,   the
main arguments put forward by the interested parties were that low
price imports from other third countries have increased substantially
 in recent years and are comparable to the volume of the dumped
 imports.    It has been found, however,  that the prices of these imports
 are significantly higher than the prices of imports from the countries
 in question.
 F . Community interest
 10.    Community processing industries which use glass textile fibres
 as input materials have continued to argue that the introduction of
 protective measures was not in the Community's interest because it
 would make them less competitive.
     11.   In view, however, of the particularly serious losses which the
     Community producers are incurring in the production and sale of the
     products concerned and in order to avoid the danger that other
     plants may close in addition to the two already closed since    I'hil, the
     Council has come to the conclusion that on balance it is in the
     Community's interests that action be taken.    In these circumstance:,,
     protection of the Community's interests calls for the imposition
     of a definitive anti-dumping duty on imports of glass textile fibres
     (rovings) originating in Czechoslovakia,   the German Democratic li.-public
     and Japan.
 ---pagebreak---                                                                                          -    4 -
             G . Amount of definitive duty
             12.       For the provisional duty the Commission had fixed the level
             required to eliminate injury at the amount by which the free-at-
             Community-frontier price, before duty, was less than 0,97 fc’ClJ
             per kilogram.                   Community industry argued that this price was                                                          too     1·>..·
             because          the unit cost of Community producers'                                              products would                         11 1
             be higher than the likely resale price of the imports following
             imposition of the provisional duty.
             13.       Accordingly,                  the production costs of each Community producer'
            were       re e xa m in e d      and the more detailed product-by-product cost
             information confirmed that unit production costs were higher than the
             resale prices of the imports and that an increase of the duty was
            necessary.
14 .        Having therefore compared the Community producers'                                                             weighted average
prices and costs,                       account being taken of their profit margins with                                                              the
 individual              importers'               costs and special marketing conditions,                                                where
available,               and having made allowances for quality differences and
differences in conditions and terms of sale where necessary,                                                                            it has
been concluded that the definitive anti-dumping duty should bo the
amount by which the free-at-Community                                                frontier net price,                        before duty,
is less than 1,03 ECU per kilogram for glass textile fibres                                                                           ( r-ov iug .·.·
 H.      U n d e rta k in g s
 15.       U n d e rta k in g s    were     o ffe re d       by   th e   C z e c h o s lo v a k ia n    e x p o rte r,    G la s s e x p o rt      Co.    L td .
 and    the     Japan      G la s s    F ib re     A s s o c ia tio n    in    th e    name o f        a ll   its    mem bers.           In   th e     case
of     Japan,       th e re    were      not     o th e r    e xp o rts    to    th e    European         C o m m u n ity   d u rin g      th e    in v e s ti­
g a tio n     p e rio d ,    apart       fro m     th e    e xp o rts    of    N ippon       E le c tric      Co.    w h ich     had o f f e r e d      an
 a c c e p ta b le   p ric e     u n d e rta k in g      b e fo re    th e   im p o s itio n      of    th e   p ro v is io n a l      d u ty   and     w h ich
 was     c o n se q u e n tly    e x c lu d e d    from      th e   p ro v is io n a l     m easures        ta k e n ;   the o th e r       Japanese
producers          have     d e c la re d     t h a t t h e y have no i n t e n t i o n t o e x p o r t i n t h e n ea r f u t u r e b u t t h a t , i f and when
t h e y would e x p o r t t o t h e European Community, t h e p r i c e o f t h e s e e x p o r t s w i l l n o t be a t a dumping l e v e l .
 W ith     regard      to    C z e c h o s lo v a k ia ,     th e   e ffe c t    of    th e    o ffe re d    u n d e rta k in g      w ill    be     to
 in c re a s e    e xport      p ric e s    to     the     C o m m u n ity   to    th e    le v e l   necessary          to    e lim in a te       th e
 in ju ry     fo u n d .     T h is    in c re a s e     in    no   case     exceeds         th e   dum ping       fou n d     in    th e    in v e s tig a tio n .
 16.       The    C o m m issio n ,      a fte r     c o n s u lta tio n ,     c o n sid e re d     th a t    th e   u n d e rta k in g s     o ffe re d
are     a c c e p ta b le    and     th e   p ro c e e d in g     c o n c e rn in g    C z e c h o s lo v a k ia   and     Japan       may,     th e re fo re ,
be     te rm in a te d .       Under       these       c irc u m s ta n c e s ,    th e    a p p lic a tio n     of    th e    d u ty    s h o u ld    be
 lim ite d      to   th e    German        D e m o c ra tic     R e p u b lic .
 ---pagebreak---                                                                        -   5 -
I . Collection of provisional duty
17.     In view of the extent of tne dumping ana injury found and the
critical situation of the Community industry,                                               the amounts secured by
way of provisional anti-dumping duties should be definitively
collected -
    HAS ADOPTED THIS REGULATION:
                                                                Article 1
    1.       A definitive anti-dumping duty is hereby imposed on imports of
    continuous glass textile fibres (rovings)                                             falling within subheading
    ex 70.20 B of the Common Customs Tariff corresponding to NIMEXE
    code 70.20-70, originating in the German Democratic Republic.
    2.       The amount of the duty shall be equal to the amount by which                                                              the
    price per kilogram free-at-Community-frontier before duty is less than
     1,03 ECU.
    The free-at-Community-frontier prices shall be net if the conditions
    of sale provide for payment within 30 days from the date of shipment;
    they shall be reduced or increased by 1% for each increase or
    decrease of one month in the period for payment.
    3.      The p r o v i s i o n s   in   fo rce    c o n c e rn in g    custom s      d u tie s    s h a ll  a p p ly   fo r the
    a p p lic a tio n     of   th e   d u ty.
                                                                A rtic le      2
    The u n d e r t a k i n g s    g ive n   by   G la sse xp o rt       C o.,   C z e c h o s lo v a k ia ,  and   th e   Japan    G la ss
     F ib e r  A s s o c ia tio n    in  th e   name o f      a ll    its    members       are     hereby      accepted.
                                                                A rtic le      3
    The a n t i - d u m p i n g   p ro c e e d in g  c o n c e rn in g    im p o rts    of   c o n tin u o u s   g la s s  te x tile
    fib re s    (ro v in g s )    o rig in a tin g     in    C ze c h o s lo v a k ia   and     Japan      is  hereby      te rm in a te d .
 ---pagebreak---                                  - 6. -
                              Article 4
The sums secured by way of provisional anti-dumping duty under
Regulation (EEC) No 1631/83 shall be definitively collected.
                              Article 5
This Regulation shall enter into force on the day of its publ ice1 ion
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
                                           For the Council
                                            The President