Council Regulation (EC) No 311/2002 of 18 February 2002 imposing a definitive anti-dumping duty on imports of certain magnetic disks (3,5″ microdisks) originating in Hong Kong and the Republic of Korea

• Published date: 21 February 2002
• Subject Matter: Dumping,Commercial policy
• Official Gazette Publication: Official Journal of the European Communities, L 50, 21 February 2002

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Council Regulation (EC) No 311/2002 of 18 February 2002 imposing a definitive anti-dumping duty on imports of certain magnetic disks (3,5″ microdisks) originating in Hong Kong and the Republic of Korea

Official Journal L 050 , 21/02/2002 P. 0013 - 0023

Council Regulation (EC) No 311/2002

of 18 February 2002

imposing a definitive anti-dumping duty on imports of certain magnetic disks (3,5" microdisks) originating in Hong Kong and 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 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community(1), and in particular Article 11(2) thereof,

Having regard to the proposal submitted by the Commission after consulting the Advisory Committee,

Whereas:

A. GENERAL INFORMATION

1. Procedure

Previous investigations

(1) In September 1994, by Regulation (EC) No 2199/94(2), the Council imposed definitive anti-dumping measures on imports of certain magnetic disks ("3,5" microdisks") originating in Hong Kong and the Republic of Korea ("Korea").

Proceedings concerning other countries

(2) Apart from measures on 3,5" microdisks originating in Hong Kong and Korea, it is recalled that definitive anti-dumping duties have also been imposed on imports of 3,5" microdisks originating in Japan, Taiwan and the People's Republic of China(3) and Indonesia(4). The measures on imports of 3,5" microdisks originating in Japan, Taiwan and the People's Republic of China are currently subject to an expiry review(5).

(3) In December 1999 the product scope of the measures was clarified. It was found that the microdisks based on optically continuous servo tracking technology or magnetic sector servo tracking technology with a storage capacity of 120 MB or more did not fall under the scope of any of the existing anti-dumping measures on 3,5" microdisks(6).

Current investigation

(4) Following the publication of the notice of impending expiry of the anti-dumping measures applicable to imports of 3,5" microdisks originating in Hong Kong and Korea, the Commission received, in June 1999, a request to review these measures pursuant to Article 11(2) of Regulation (EC) No 384/96 ("the basic Regulation"). The request was lodged by the Committee of European Diskette Manufacturers ("Diskma") on behalf of producers whose combined output constitutes a major proportion of the total Community production of 3,5" microdisks ("the product concerned"). The request was based on the grounds that the expiry of the measures would be likely to result in the continuation or recurrence of dumping and injury to the Community industry.

(5) Having determined, after consulting the Advisory Committee, that sufficient evidence existed for the initiation of an expiry review, the Commission initiated an investigation(7) pursuant to Article 11(2) of the basic Regulation.

Period of investigation

(6) The investigation of the likelihood of continuation and recurrence of dumping covered the period from 1 September 1998 to 31 August 1999 ("IP"). The examination of trends relevant for the assessment of the likelihood of continuation and recurrence of injury covered the period from 1995 up to the end of the investigation period ("the analysis period").

2. Parties concerned by the investigation

(7) The Commission officially advised the four Community producers supporting the request, the exporting producers and the importers known to be concerned as well as the representatives of the exporting countries of the initiation of the investigation, and gave the parties directly concerned the opportunity to make their views known in writing and to request a hearing.

(8) The Commission sent questionnaires to all parties known to be concerned and received full replies from three Community producers ("the cooperating Community producers") and one unrelated importer of 3,5" microdisks originating in Hong Kong. No complete replies were received from any exporting producers in either Hong Kong or Korea.

(9) The Commission sought and verified all information they deemed necessary for the purposes of determining whether there was a likelihood of a continuation or recurrence of dumping and injury and whether maintaining the measures would not be against the Community interest.

Verification visits were carried out at the premises of the following companies:

Cooperating Community producers

- Sentinel N.V., Bodem, Belgium;

- Computer Support Italcard srl, Milan, Italy;

- Datarex srl, Assemini, Italy.

Importers

- Datamatic srl, Milan, Italy.

3. Product concerned and like product

Product concerned

(10) The product concerned is the same as in the original investigation and as clarified subsequently, i.e. 3,5" microdisks used to record and store encoded digital computer information falling within CN code ex 8523 20 90, with the exception of 3,5" microdisks based on optically continuous servo tracking technology or magnetic sector servo tracking technology with a storage capacity of 120 MB or more.

(11) The 3,5" microdisks concerned are available in various types, depending on various factors, including, amongst others, their storage capacity, formatting, degree of certification (this is a measure used to test the performance of the microdisk which influences its market value) and on the way in which they are marketed, i.e. whether sold as branded products or in bulk. Despite the existence of various types of 3,5" microdisks, there are no significant differences in their basic physical characteristics and technology, and they all show a high degree of interchangeability.

(12) On this basis, the 3,5" microdisks as defined above are to be considered as one product.

Like product

(13) The various types of 3,5" microdisks, as defined above, which are manufactured and sold in the Community, and those manufactured and sold in the countries concerned or exported to the Community are alike in their essential physical characteristics and technology and show a high degree of interchangeability. Therefore, they are considered to be like products within the meaning of Article 1(4) of the basic Regulation.

B. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING

1. General

(14) The market share represented by imports of 3,5"microdisks from Hong Kong was significant at the time of the original investigation, when it represented more than 10 % of the total Community consumption. In the period following the imposition of the anti-dumping measures, this market share decreased to 5,5 % in 1997 and during the IP of this investigation, it represented 7,3 % of the total Community consumption.

(15) The market share represented by imports from Korea represented at the time of the original investigation more than 2 % of the total Community consumption. After the imposition of the anti-dumping measures, the market share of Korean imports decreased substantially, and during the IP it represented less than 0,2 % of the total Community consumption of the product concerned.

(16) As far as Hong Kong is concerned, four out of the 10 companies contacted came forward and stated that they were no longer producing or selling the product concerned to the Community. The remaining companies did not reply at all to the questionnaire.

(17) In the case of Korea, neither of the two companies named in the request for a review replied to the questionnaire. During the investigation no indication of the existence of other Korean exporting producers was found. It should be recalled that only one company cooperated in the investigation which led to the adoption of the anti-dumping measures.

(18) Under these circumstances, findings concerning Hong Kong and Korea were established on the basis of the facts available, in accordance with Article 18 of the basic Regulation.

2. Continuation of dumping

(a) Hong Kong

Normal value

(19) In view of the non-cooperation, normal value was established on the basis of the information provided in the request for review, which was the only reliable information available. The use of the normal value established in the original investigation would be inappropriate, because prices and costs for the manufacturing of the product concerned have decreased...