CELEX: 51981PC0459
Language: en
Date: 1981-07-27
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on potato granules originating in Canada (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 459
Vol. 1981/0140
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              \
                                                      COM(81)459 final
                                                      Brussels , 27 July 1981
                                                                      s-
                                 Proposal for a
                            COUNCIL REGULATION ( EEC )
 imposing a definitive anti-dumping duty on potato granules originating
                                    in Canada
                  ( submitted to the Council by the Commission )
                                                -Λ
                                                  ·>\
 C0M(81 ) 459 final
 ---pagebreak---  On 28 April 1981 the Commission , by Regulation ( EEC ) 1101 / 81(1 ) imposed
 a provisional anti-dumping duty on potato granules originating in Canada .
 However , one of the two exporters known to be concerned , Carnation , offered
 voluntary undertakings to increase its prices and was , therefore , exempted
 from this duty .
  The facts as finally established show that Vauxhall Foods Ltd , the other
  exporter , has been dumping at varying rates , in some instances up to 20% ,
 the weighted average margin being 6,9% . After imposition of the provisional
 duty Vauxhall , therefore , has also offered a voluntary undertaking
 which the Commission considers acceptable .
  With regard to injury , no additional information has been received by
 the Commission . The Commission has therefore definitively concluded that the
 dumped imports have caused material injury to a Community industry concerned
  It is therefore proposed to impose a definitive anti-dumping duty on •
 potato granules originating in Canada , the rate of which should be equal
 to the provisional duty , i.e. 4.481 European Units of Account per 100 kg
 net weight , with the exemption of Carnation Foods Company Ltd , Carnation
 Inc and Vauxhall Foods Ltd .      Although these companies were the only known
 exporters of granules the duty is necessary in order to avoid that the
 price levels established by the undertakings are undercut by future
 exports made by other Canadian manufacturers .
 It is further proposed that the amounts secured by way of provisional
 duty should be definitively collected .
< 1 ) 0J No L 116 , 28.4.1981 , p . 11
 ---pagebreak---                              Proposal for
                      COUNCIL REGULATION ( EEC )
         imposing a definitive anti -dumping duty on potato granules
                     originating in Canada
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                           '                         '                         v "
  Having regard to the Treaty establishing the European Economic Community,
  Having regard to Council Regulation (EEC) N° 3017/79 of 20 December 1979
  on protection against dumped or subsidized imports from countries not
  members of the European Economic Community ( 1 ), and in particular Article
  12 thereof ;                '
                  t                                    A
   Having regard to the proposal submitted by the Commission;
                       *        , .       . . ■
   After consultations within the Advisory Committee set up under that Regulation ;
                                    . 4
 Whereas the Commission, by Regulation ( EEC ) N° 1101 / 81 ( 2 ), imposed a
 provisional anti-dumping duty on imports of potato granules originating
 in Canada , whereas at the same time the Commission accepted voluntary under­
 takings^ offered by Carnation, one of the two Canadian exporters known to
 be concerned, to increase their prices to a level eliminating the dumping
 margin found and exempted their exports from the application of the
 provisional duty ;                     .                                    ,
 Whereas with regard to the other e'xporter concerned, Vauxhall Foods Ltd .,   ,
 the provisional dumping margin was established by taking account of the
 fact that this company, during the period of investigation , had sold
 substantial quantities of the product concerned at a loss on the domestic
                t
 market ; whereas normal value was established, therefore , on the basis of
 the constructed value including a 6% profit margin ; whereas
 subsequently Vauxhall contested the finding of dumping and in particular
 the addition of 6% profit margin ; whereas it was unnecessary to take a decision
on the merits of these arguments because , for the purpose of the final deters
mination , the Commission determined normal value on the basis of the company 's
sales on the domestic market made at a price which was not less than the cost of
production , which represented approximately one third of total domestic sales
volume during the period of Investigation and was deemed, therefore, to represent
a reliable basis for comparison .
 <1)0J N° L 339, 31.12.1979, p. 1
 ( 2 ) Oj N° L 116, 28.04.1981 , p. 11 .
 ---pagebreak---                                    -2 -
Whereas this normal value was compared with Vauxhall 's export prices ,
transaction by transaction , on an ex-factory basis ;
 Whereas for the purpose of a fair comparison between normal value
 and export prices , account was taken of the fact that certain variable
 costs like commissions paid to sales agents were only incurred on
 the domestic market ;
 Whereas this comparison showed that exports to the Community made by
 Vauxhall during the period of investigation were dumped at varying rates ,
  in some instances up to 20% , the weighted average margin being 6,9%;
  Whereas with regard to injury caused by the dumped imports to the
  Community industry, no additional information has been received by
  the Commission; whereas , however , Vauxhall alleged that due to a
  shortage of potatoes in Canada in the present crop year they were
  unable to supply substantial quantities of granules to their EEC
  customers and could not , therefore , cause any injury to Community
  producers ; whereas this allegation is not supported by the facts
   available to the Commission and Vauxhall did not supply any supporting
   evidence ; whereas the Commission has therefore definitively concluded that \ u he
   dumped imports have caused material injury to the Community industry concerned ;
   Whereas Vauxhall Foods Ltd . have voluntarily undertaken to increase
   their prices to a level which eliminates the injurious effects of
   their exports to the Community ; whereas the Commission has accepted
   this undertaking ;
   Whereas , although the only two companies known to be exporting potato
   granules to the Community have voluntarily undertaken to increase their
   export prices , protection of Community interests nevertheless requires
  the imposition of a definitive anti-dumpinq duty in order to avoid
        the price levels established by the undertakings being under-cut
  by future exports made by other Canadian manufacturers ; whereas it is appropriate
  that this duty be equal to the rate of the provisional duty which was
  applicable to exporters other than Vauxhall , and has never been contested;
  whereas Community interests also call for the definitive collection in their
  entirety of the amounts secured by way of provisional anti-dumping duty ;
 ---pagebreak--- Whereas it is appropriate , however , to exclude the exports made by
VauxhaLL' and Carnation whose undertakings have been accepted by the
Commission , from the application of this definitive duty ;
HAS ADOPTED THIS REGULATION :
                                 Article 1
1 . A definitive anti-dumping duty is hereby imposed on potato granules
 falling within Common Customs Tariff subheading ex 11.05 and corresponding
to NIMEXE code ex 11.05-00, originating in Canada . This duty shall not
apply to potato granules exported by Carnation Inc :, Carnation Foods
Company Ltd . and Vauxhall Foods Ltd ., Canada .
2 . The rate of the duty shall be equivalent to 4.481 European Units
of Account per 100 kg net weight .
3 . The provisions in force for the application of customs duties shall
apply to this duty .
                                  Article 2
The amounts secured by way of provisional anti-dumping duty persuant to
Regulation ( EEC ) No 1101 / 81 shall be definitively collected .     >
                                  Article 3
This Regulation shall enter into force on the day of its publication
in the Official Journal of the European Communities .
                      • Ν
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,