31978R1355
No L 165/20 22. 6. 78 Official Journal of the European Communities
COMMISSION REGULATION (EEC) No 1355/78 of 20 June 1978 impoding a provisional anti-dumping duty on ferro-chromium originating in the Republic of South Africa and Sweden
THE COMMISSION OF THE EUROPEAN sion carried out an on-the-spot inspection of the prin COMMUNITIES, cipal Swedish producer ;
Having regard to the Treaty establishing the European Economic Community, Whereas during the examination of the existence of dumping the Commission has found that the sales of Having regard to Council Regulation (EEC) No the company in question on the Swedish market were 459/68 of 5 April 1968 on protection against relatively low compared to its total sales and that the dumping or the granting of bounties or subsidies by prices of these domestic sales did not permit a valid countries which are not members of the European comparison of prices ; consequently recourse was had Economic Community (J), as last amended by Regula to the criterion of cost of production ; tion (EEC) No 1411 /77 (2), and in particular Article 15 thereof,
whereas such cost of production has been calculated After hearing the opinions expressed in the Advisory taking into consideration inter alia the following Committee set up under the said Regulation, elements : raw materials (including the basic mineral which contains chrome oxide, bauxite, quartz and Whereas the Commission has received a complaint other materials for electrodes and fluxes), energy costs submitted in the name of the Community ferro (coke, electricity), labour costs including social costs, chromium industry setting out evidence as to the exist other operating costs (including maintenance costs ence of dumping of ferro-chromium originating in and transport costs), interest paid, to which was added the Republic of South Africa and Sweden as well as a reasonable amount for administration, selling and material injury resulting therefrom ; other costs and for profits ;
Whereas, since the information received indicated that the complaint was admissible and that defensive Whereas these preliminary calculations have shown measures against dumping might be necessary, the that the fair market price of ferro-chromium on the Commission officially notified the representatives of Swedish market brought up to a cif Community fron the exporting countries and the importers and expor tier basis, duty unpaid is 36.05 US cents/lb for 'charge ters known to be concerned, published in the Official chrome', 38.93 US cents/lb for high carbon ferro Journal of the European Communities of 13 April chromium and 62.23 US cents/lb for low carbon ferro 1978 notices of the initiation of enquiries concerning chromium : imports of ferro-chromium originating in the Repu blic of South Africa and Sweden (3) and commenced an examination of the facts for the abovementioned countries ; Whereas the preliminary determination of a dumping margin for South African products has had to be made on the basis of the facts available to the Whereas the Commission gave interested parties the Commission since an on-the-spot investigation of opportunity to make known their views in writing ; South African producers has not been possible at the moment ; Whereas the Commission heard interested parties and gave to parties directly concerned the opportunity to develop their views orally and to meet and to present opposing views and rebuttal arguments ; Whereas the preliminary examination of the available facts on the cost of production in the Republic of South Africa has shown that the fair market price of Whereas, with a view to a correct determination of the ferro-chromium on the South African market brought dumping margin for Swedish products the Commis up to a cif Community frontier basis, duty unpaid is 34.35 US cents/lb for charge chrome, 37-13 US (!) OJ No L 93, 17. 4. 1968, p. 1 . (2) OJ No L 160, 30. 6. 1977, p. 4. cents/lb for high carbon ferro-chromium and 59-35 (3) OJ No C 90, 13. 4. 1978, p. 3. US cents/lb for low carbon ferro-chromium :
22. 6 . 78 No L 165/21 Official Journal of the European Communities
Whereas these fair market prices have been compared with the South African and Swedish export prices to Whereas a new aggravation of the situation is taking the Community ; shape, considering the spectacular increase of imports during the first months of 1978 ; Whereas this comparison has been made at the same commercial level, in respect of sales made at the same Whereas, for these reasons, a Member State requested time, due allowance having been made, on their the Commission, to take provisional measures immedi merits, for differences in the conditions and terms of ately in accordance with Article 15 ( 1 ) (c) of Regula sale and for other differences affecting price compara tion (EEC) No 459/68 ; bility ;
Whereas, in these circumstances, the interests of the Whereas this preliminary examination shows that Community call for immediate intervention, dumping has taken place, the margin of which is consisting in the imposition of a provisional anti constituted by the undercutting of the fair market dumping duty relating to imports of ferro-chromium prices ; originating in the Republic of South Africa and Sweden ; Whereas, with regard to injury to the industry concerned, the evidence available to the Commission Whereas, however, the investigation relating to a shows that imports into the Community of ferro Swedish exporter whose deliveries to the Community chromium exported by South Africa and Sweden has only have a slight impact is not yet sufficiently increased from a level of approximately 94 000 tonnes advanced to enable preliminary conclusions to be in 1974 to 204 000 tonnes in 1977 ; drawn ; whereas it was consequently decided to exclude the exporter from the application of this provi sional duty, Whereas the imports concerned represent a market share in the Community of 19 % in 1974 and 45 % in 1977 and consequently have a very considerable influence on the market ; HAS ADOPTED THIS REGULATION :
Whereas the prices of these imports on the Commu nity market have fallen considerably, particularly in Article 1 recent months, thus exercising a depressive effect on the Community producers' prices which no longer cover their costs of production ; 1 . A provisional anti-dumping duty is hereby imposed on ferro-chromium, falling within Common Customs Tariff subheading 73.02 E I and corres Whereas this development has taken place to the detri ponding to NIMEXE code 73.02-51 , originating in ment of the Community industry which is in a very the Republic of South Africa and Sweden. This duty difficult situation, characterized by a reduction in does not apply to ferro-chromium manufactured by production of approximately 17 % between 1974 and Ferrolegeringar Trollhatteverken AB, Sweden. The 1977, by a large under-utilization of production provisions in force for the application of customs capacity by large unsold stocks, the temporary cessa duties shall apply for the application of this duty. tion of production in one area of the Community and by loss of jobs, short-time working for the personnel of the enterprises concerned, and by the appearance 2. The amount of such duty shall correspond to the of losses for the companies in question ; difference between the fair market price in the Repu blic of South Africa and Sweden as set out in para graph 3 and the price free Community frontier duty Whereas there is, therefore, sufficient evidence to unpaid to the first importer. show that, due consideration having been given to the other factors having a bearing on the situation of this industry, as, for example, the imports from other 3. For the purpose of this Regulation the fair sources, the imports in question are causing and market prices in the Republic of South Africa and threatening to cause material injury to the Commu Sweden brought up to a cif Community frontier basis, nity industry ; duty unpaid , are as follows :
No L 165/22 Official Journal of the European Communities 22. 6. 78
Fair market price in US cents per lb of chrome contained Composition South Africa Sweden
1 . ferro-chromium known as 'charge chrome': — chrome content : 50 — 58 % inclusive — carbon content : 6 — 9 % inclusive 34-35 36-05 — silicon content : 1 — 7 % inclusive 2. high carbon ferro-chromium : — chrome content : greater than 58 % — carbon content : 4 — 7 % inclusive 37.13 38-93 — silicon content : 1.5 % maximum 3 . low carbon ferro-chromium : — maximum carbon content : 0.5 % 59-35 62.23 — maximum silicon content : 1.5 %
4. The above fair market prices are net if the conditions of sale provide for payment within 30 days from end of month of delivery ; they are to be increased or reduced by 1 % for any payment terms granting one month more or less.
Article2¶
The entry of the products described in Article 1 into free circulation shall be conditional upon the deposit of security for the amount of the provisional duty.
Article3¶
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.
Without prejudice to the provisions of Articles 16 and 18 of Regulation (EEC) No 459/68, it shall apply until the entry into force of an Act of the Council either adopting definitive measures or extending the provisional duty, and in any event for a maximum period of three months .
This Regulation shall be binding in its entirety and directly applicable in all Member States .
Done at Brussels, 20 June 1978 .
For the Commission Étienne DAVIGNON
Member of the Commission