CELEX: 51996PC0052
Language: en
Date: 1996-02-15
Title: Proposal for a COUNCIL REGULATION (EC) EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTIDUMPING DUTIES IMPOSED ON IMPORTS OF CERTAIN TYPES OF ELECTRONIC MICROCIRCUITS KNOWNS AS DRAMS (DYNAMIC RANDOM ACCESS MEMORIES) ORIGINATING IN JAPAN AND IN THE REPUBLIC OF KOREA

WPIS
              COMMISSION OF THE EUROPEAN COMMUNITIES
                                              Brussels, 15.02.1996
                                              COM(96) 52 final
                               Proposal for a
                    COUNCIL REGULATION (EC)
         EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTI-
       DUMPING DUTIES IMPOSED ON IMPORTS OF CERTAIN TYPES
          OF ELECTRONIC MICROCIRCUITS KNOWN AS DRAMS
                 (dynamic random access memories)
      ORIGINATING IN JAPAN AND IN THE REPUBLIC OF KOREA
                      (presented by the Commission)
I'-W
 ---pagebreak---  ---pagebreak---                                  Explanatory Memorandum
    (1)  The Commission, by Decision (95/197/EC) of 8 June 19950), suspended the
         definitive anti-dumping duties imposed on DRAMs originating in Japan and
         the Republic of Korea for a period of nine months, i.e. until 9 March 1996. This
         decision was adopted on the grounds that the market situation for the product in
         question had temporarily changed to the extent that injurious dumping no
         longer prevailed and that, therefore, the measures could be suspended.
    (2)  The Commission has examined the data available concerning the conditions on
         the Community market and found that, towards the end of the initial period of
         suspension of the measures, the DRAM market in the Community is still stable
         with demand outstripping supply. Sales prices are high and the financial
         performance of the Community industry is still favourable. Market forecasts
         indicate that such market situation would be further sustained at least for 1996
         and the first part of 1997.
         It appears reasonable, therefore, to assume that injurious dumping on the
         Community market would not recur if the suspension of the measures would be
         extended for a period of one year, i. e. until March 1997.
    (3)  The Commission has informed the complainant of its intention to propose to
         the Council the extension of the suspension the above anti-dumping measures
         and has provided it with an opportunity to comment. The complainant has
         raised no objections with regard to such proposal.
(') OJN°L 126,9.6.1995, p.58
 ---pagebreak--- (4) The attached draft Council Regulation contains more detailed information
    showing that the requirements contained in Article 14 (4) of Council
    Regulation (EC) No 3283/94 for the extension of the suspension of these anti-
    dumping duties are met.
(5) Therefore, it is proposed that the Council decides to extend, for a period of one
    year, the suspension of the anti-dumping duties imposed on imports of
    DRAMs originating in Japan and Korea.
 ---pagebreak---                                COUNCIL REGULATION (EC) No .... /96
                                             of        /1996
                   EXTENDING THE SUSPENSION OF THE DEFINITIVE ANTI-
               DUMPING DUTIES IMPOSED ON IMPORTS OF CERTAIN TYPES
                      OF ELECTRONIC MICROCIRCUITS KNOWN AS DRAMS
                                (dynamic random access memories)
             ORIGINATING IN JAPAN AND IN THE REPUBLIC OF KOREA
            THE COUNCIL OF THE EUROPEAN UNION,
            Having regard to the Treaty establishing the European Community,
            Having regard to Council Regulation (EC) No. 3283/94 of 22 December 1994
            on protection against dumped imports from countries not members of the
            European Community*'>, as last amended by Council Regulation of (EC)
            No. 1251/95(2), and in particular Article 14 (4) thereof,
            Having regard to the proposal submitted by the Commission after consulting
            the Advisory Committee,
            Whereas:
(') OJ N_L 349, 31.12.94, p. 1
W   OJN°L 122,2.6.95, p. 1
                                              V
 ---pagebreak---      (1)     The Council, by Regulation (EEC) 2112/90(3), imposed a definitive anti-
             dumping duty on imports into the Community of certain types of electronic
             microcircuits              known       as     DRAMs         (dynamic random access          memories)
             originating in Japan, and falling under
     —       CN codes 8542 1112, 8542 1114, 8542 1116, 8542 1118 for                                       finished
             DRAMs
     —       ex 8542 11 01 for DRAM wafers, ex 8542 11 05 for DRAM-dice or -chips and
     —       ex 8473 30 10 or ex 8548 00 00 for DRAM modules.
     (2)     By Regulation (EEC) No 611/93(4), the Council imposed a definitive anti-
             dumping duty on imports into the Community of the same products originating
             in the Republic of Korea.
     (3)     The Commission, by Decision (95/197/EC) of 8 June 1995<5>, suspended the
             definitive anti-dumping duties imposed on DRAMs originating in Japan and
             the Republic of Korea for a period of nine months on the grounds that the
             market situation for the product in question had temporarily changed to the
             extent that injurious dumping no longer prevailed and that, therefore, the
             measures could be suspended for this period.
<3) OJ N°L 193, 25.7.90, p. 1, as last amended by Regulation (EEC) No 2967/92. Oj L 299 of 15.10.92, p.4
(4) OJN°L66, 18.3.93, p. I
(5> OJN°L 126,9.6.1995, p.58
 ---pagebreak---      (4)   On 15 July 1995 the Commission initiated a review*6* of the anti-dumping
           measures concerning DRAMs originating in Japan and the Republic of Korea,
           pursuant to Article 11 (3) and (7) of Regulation (EC) 3283/94, in order to
           investigate the need for the continued imposition of the measures. This review
           is at present pending.
     (5)   Based on the information available on the market situation, in particular the
           sales reports of the exporters concerned, the Commission has examined
           whether the conditions for extending the suspension of the anti-dumping duties
           are met. In particular, the statistical information available and the sales data
           which the Commission has obtained from the Community producers and all
           known Japanese and Korean exporters, shows that, as the end of the initial
           period of suspension of the measures approaches, the DRAM market in the
           Community is still stable, with demand outstripping supply. Sales prices are
           high and the financial performance of the Community industry is still
           favourable. It was found that, in general, the market conditions described in
           recital (3) of Commission Decision (95/197/EC) have prevailed. Market
           forecasts indicate that such a market situation will be sustained at least for 1996
           and the first part of 1997.
(6
  > OJN_C 181, 15.7.95, p. 13
 ---pagebreak--- (6) However, it is also considered that, in view of the cyclical nature of the DRAM
    market in the past, the current market situation might be followed by a market
    down-turn. This could result in a recurrence of injurious dumping and would
    again necessitate the application of anti-dumping measures. This consideration
    appears to be supported by the fact that significant additional production
    capacities have recently been established worldwide and in particular in Japan
    and the Republic of Korea, and that, in addition, further capacities will be
    established in the near future. It is reasonable to assume that this increase in
    worldwide production capacity might aggravate a possible future market down-
    turn.
(7) In the light of the foregoing, it is considered appropriate to extend the
    suspension of the measures in question beyond the initial period of nine
    months, by a further period of one year, and it is considered unlikely that
    injurious dumping of DRAMs would recur on the Community market as a
    result of such extension.
(8) Therefore, in accordance with the provisions of Article 14 (4) of the Regulation
    (EC) 3283/94 the Commission informed the complainant of its intention to
    propose to the Council to extend the suspension of the above anti-dumping
    duties for a period of one year and has provided it with an opportunity to
    comment. The complainant raised no objections in this regard.
                                       T
 ---pagebreak--- (9)  In conclusion, it is considered that the requirements to extend the suspension of
     the duties concerned, pursuant to Article 14 (4) of Regulation (EC) N° 3283/94,
     are met and that the suspension should therefore be extended for a period of
     one year.
(10) The Commission will continue to monitor closely the development of the
     DRAM-market and the behaviour of individual market participants, as it has
     done so during the initial period of suspension. Should a situation arise in
     which injury to the Community industry would recur, the Commission will
     propose that the Council reinstate the above anti-dumping duties without delay.
(11) To this end, the obligation to submit reports on sales and prices pursuant to the
     undertakings will continue in order to enable the Commission to monitor the
     DRAM market. However, as previously stated, during the period of the
     extended suspension of the anti-dumping duties, the obligation to adhere to the
     minimum price provisions of these undertakings will be waived. The quarterly
     calculation and communication of such prices to these companies by the
     Commission will therefore be discontinued during this period.
(12) The Advisory Committee was consulted on the suspension of the anti-dumping
     measures and raised no objections.
                                        €>
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                       Sole Article
    The suspension of the definitive anti-dumping duties imposed on imports of
    certain types of electronic microcircuits known as DRAMs
    (dynamic random access memories) originating in Japan and the Republic of
    Korea by Council Regulations (EEC) 2112/90 and (EEC) No 611/93
    respectively is hereby extended for a period of one year.
    This Regulation shall enter into force on the day following its publication in the
    Official Journal of the European Communities.
                                    Done at Brussels,
                                        9
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(96) 52 final
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