31987R3752

16 . 12 . 87 No L 353/ 11 Official Journal of the European Communities

COMMISSION REGULATION (EEC) No 3752/87 of 15 December 1987 instituting a system for the authorization of imports into Italy and Spain of certain kinds of slide fasteners originating in Taiwan

THE COMMISSION OF THE EUROPEAN COMMUNITIES, Arguments were presented on behalf of the Italian producers by the Asociazione Nazionale Industria Meccanica Varia ed Affine (ANIMA). Information Having regard to the Treaty establishing the European was also supplied by Taiwan Zippers Manufacturers Economic Community, Association and by the main Spanish and Italian importers . Having regard to Council Regulation ( EEC) No 288/82 of 5 February 1982 on common rules for imports ('), as last (5) In the course of its investigation, the Commission amended by Regulation (EEC) No 1 243/85 (2), and in endeavoured to gather and verify all the informa­ particular Article 15 ( 1 ) thereof, tion it regarded as necessary. Since imports from Taiwan represent virtually all imports into Spain After consultations within the Advisory Committee set up and Italy of slide fasteners originating in non­ by the above Regulation , member countries, the Commission's investigation concentrated on products from Taiwan. It made Whereas : on-the-spot checks at the premises of the following companies :

Spanish producers : A. Procedure — Areito SA, Vitoria, ( 1 ) The Commission , was informed on 7 April 1987 by — Cremalleras Rubi, Barcelona, the Spanish authorities and on 15 April 1987 by — Yoshida Española SA, Tarragona ; the Italian authorities that imports into Spain and Italy of slide fasteners and parts thereof originating Italian producers : in Taiwan, and in particular those with scoops not of base metal , had increased and would continue to — Lanfranchi SpA, Palazzolo, do so in such quantities and in such manner that — Sarem-Meras, Vimercate : there was, or threatened to be , serious injury to national industries . Italian importers :

(2) The Spanish and Italian requests were supported by — Textil-Import du Ugo e Clemente Orsa & evidence regarding the trend of imports and the CSAS, Milano, terms on which they were taking place , in parti­ — Italchiusure Sri, Milano, cular with regard to prices . Information had also — Texxil SNC, Seregno ; been supplied regarding the effects of such imports on the slide fastener industry. (6) Price comparisons made related to the period 1 October 1986 to 30 September 1987. (3) Having decided, after consultations, that the evidence in its possession was sufficient to justify the initiation of an investigation , the Commission B. Products and industries concerned accordingly announced, in a notice published in the Official Journal of the European Commun­ ities ^), the initiation of a Community investigation (7) The products which are the subject of the investi­ in respect of imports into Spain and Italy of the gation are slide fasteners falling within Common products concerned originating in Taiwan, and Customs Tariff subheading 98.02 ex B and, more commenced the investigation . particularly, those corresponding to NIMEXE codes No 98.02-51 and 55 and Combined Nomenclature codes 9607 19 00 and 9607 20 91 . (4) The Commission officially informed the producers and importers known to be involved and gave all parties concerned the opportunity to make known (8) The Commission investigation showed, whether their views in writing and to request a hearing. with regard to import trends, prices or the impact of imports on the Spanish and Italian industries, that most of the imports into Spain and Italy (') OJ No L 35, 9 . 2. 1982, p. 1 . (2) OJ No L 113 , 30 . 4. 1986 , p. i . concerned only slide fasteners with scoops not of (3) OJ No C 123, 9 . 5. 1987, p. 3 . base metal .

No L 353/ 12 16 . 12. 87 Official Journal of the European Communities

C. Slide fasteners 1 800 units in 1984 to 1 600 units in 1987 (nine months).

(9 Imports of slide fasteners with scoops not of base The current attempt to restructure this sector, par­ metal originating in Taiwan were as follows : ticularly in Spain, is severely compromised by the difficulties caused by extremely aggressive compe­ tition from imports originating in Taiwan, particu­ larly in terms of prices, and the restructuring effort ( 000 metres) may fail as the firms concerned are deprived of the 1987 finance needed to achieve that objective. 1 985 1986 (nine months)

Spain 639 8 937 16 168 ( 11 ) Both the increase in imports originating in Taiwan Italy 23 912 46 308 44 162 and the prices charged for such imports are thus a cause of material injury to the Spanish and Italian industry concerned. This has resulted in an increase in the market share held by Taiwanese exports from 0,1 % in 1984 to 47 % in 1987 (nine months) on the Spanish To eliminate that injury and prevent further injury market and from 8 % in 1984 to 48 % in 1987 from being caused to the Spanish and Italian (nine months) on the Italian market. In view of this producers, measures need to be adopted to protect trend, of the substantial production capacity in those markets for a limited period so as to impede Taiwan and of foreseeable demand in the Commu­ the harmonious development of world trade as nity, it is clear that unless adequate protective little as possible while at the same time enabling measures are taken the increase in imports origina­ the Spanish and Italian firms concerned to plan ting in Taiwan will continue at the current pace, their modernization programmes. which would in itself constitute a source of material injury. ( 12) The quantitative limits applicable to imports into Spain and Italy of slide fasteners with scoops not of base metal originating in Taiwan have been fixed (10) Resale prices on the Spanish market of slide by reference to imports into Spain and Italy during fasteners with non-metal scoops imported from the the period from 1 April 1985 to 31 March 1987. non-member country in question were about 50 % below the prices charged by Spanish producers . ( 13) To ensure that those quantitative limits are observed, the Spanish and Italian authorities should subject imports of the products in question origina­ The same resale prices on the Italian market were ting in Taiwan to a system of import authorizations about 60 % below the prices charged by Italian to be issued within the quantitative limits laid producers. down by this Regulation .

( 14) Since the investigation showed that the increased This price undercutting has forced the Spanish and penetration of imports originating in Taiwan was Italian producers to cut their prices to a level which concentrated on the two markets in question, does not cover their cost of production and to Community interests can be safeguarded without abandon market share to the Taiwanese exporters. taking any immediate protective measures in the Their share of the Spanish market fell from 99 % other Member States, in 1984 to 49 % in 1987 (nine months) and their share of the Italian market fell from 81 % in 1984 to 39 % in 1987 (nine months). The situation of the Spanish and Italian producers has deteriorated as a result and their financial results have been adversely affected, with most of the firms HAS ADOPTED THIS REGULATION : concerned making losses, which have grown during the period of the investigation .

Article1¶

The rate of utilization of production capacity fell in Spain from 72 % in 1984 to 60 % in 1987 (nine 1 . Entry for free circulation in Spain or Italy of the months) and in Italy from 59 % in 1984 to 50 % products specified below originating in Taiwan shall be in 1987 (nine months). Employment has continued subject to presentation of an import authorization to be to fall ; in Spain it tell from 978 units in 1984 to issued by the Spanish or Italian authorities, as appropriate, 800 units in 1987 (nine months) and in Italy from within the following limits :

16. 12. 87 Official Journal of the European Communities No L 353/ 13

(Million metres) CCT Limit NIMEXE heading code Description No Spain Italy

98.02 ex B 98.02-51 and 55 Slide fasteners with scoops not of base metal 4,6 33,3

This import authorization shall be valid only in the Member State in which it was issued.

2. The import authorization referred to in paragraph 1 shall be issued automatically, free of charge, within a maximum of five working days from the date of the request presented by the importer, subject to the annual quantitative limits for the Member State in question .

Article2¶

The Community investigation to re-examine the trend of imports into Spain and Italy of certain kinds of slide fasteners originating in Taiwan is hereby terminated.

Article3¶

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.

It shall be applicable from 16 December 1987 to 31 December 1988 .

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels , 15 December 1987 ..

For the Commission Willy DE CLERCQ Member of the Commission