Council Regulation (EC) No 397/1999 of 22 February 1999 imposing a definitive anti-dumping duty on imports of bicycles originating in Taiwan and collecting definitively the provisional duty imposed

• Published date: 25 February 1999
• Subject Matter: Dumping,Commercial policy
• Official Gazette Publication: Official Journal of the European Communities, L 49, 25 February 1999

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Council Regulation (EC) No 397/1999 of 22 February 1999 imposing a definitive anti-dumping duty on imports of bicycles originating in Taiwan and collecting definitively the provisional duty imposed

Official Journal L 049 , 25/02/1999 P. 0001 - 0014

COUNCIL REGULATION (EC) No 397/1999 of 22 February 1999 imposing a definitive anti-dumping duty on imports of bicycles originating in Taiwan and collecting definitively the provisional duty imposed

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 9(4) thereof,

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

Whereas:

A. PROVISIONAL MEASURES

(1) By Commission Regulation (EC) No 1833/98 (2) (hereinafter referred to as 'the Provisional Duty Regulation`), provisional anti-dumping duties were imposed on imports into the Community of bicycles falling within CN code 8712 00 10, 8712 00 30, 8712 00 80 and originating in Taiwan.

B. SUBSEQUENT PROCEDURE

(2) Following the imposition of provisional anti-dumping duties, several interested parties submitted comments in writing.

(3) The parties who so requested were granted an opportunity to be heard by the Commission.

(4) The Commission continued to seek and verify all the information it deemed necessary for the purpose of its definitive findings. A verification visit was carried out at the premises of the following importer not related to any Taiwanese exporting producer and located in the Community:

- Bikeurope BV, Utrecht, The Netherlands.

(5) All parties were informed of the essential facts and considerations on the basis of which it was intended to recommend the imposition of definitive anti-dumping duties and the definitive collection of amounts secured by way of provisional duties. They were also granted a period within which to make representations subsequent to this disclosure.

(6) The oral and written comments submitted by the parties were considered, and, where deemed appropriate, the definitive findings have been changed accordingly.

C. PRODUCT CONCERNED AND LIKE PRODUCT

(7) Since no comments with regard to the definition of the product concerned and the like product were received, the contents of recitals 13 to 19 of the Provisional Duty Regulation are hereby confirmed.

D. NEW EXPORTING PRODUCERS IN TAIWAN

(8) As explained in the Provisional Duty Regulation, in view of the large number of exporting producers in Taiwan, the Commission decided to apply sampling techniques in accordance with Article 17 of Regulation (EC) No 384/96 (hereafter referred to as 'the Basic Regulation`). No arguments have been advanced concerning the selection of the sample of exporting producers which was made with the consent of the association representing them.

One month before the adoption of provisional measures, a number of exporting producers in Taiwan made themselves known and requested new exporting producer status. Following the adoption of provisional measures the Commission, by means of a special questionnaire, examined whether these companies did not export the product concerned to the Community during the investigation period, whether they had started to export to the Community after this period or whether they had entered into an irrevocable contractual obligation to export a significant quantity to the Community, and whether they were not related to any of the exporters or producers in Taiwan which are subject to the anti-dumping measures on the product concerned. The exporting producers which have shown that they fulfil the abovementioned criteria were considered as new exporting producers and should be granted the same treatment, in terms of definitive measures, as the cooperating exporting producers not included in the sample, i.e. an anti-dumping duty calculated in accordance with Article 9(6) of the Basic Regulation.

(9) The same treatment should be granted to any other new exporting producer who, following the adoption of definitive measures, submits sufficient evidence showing that it fulfils the abovementioned criteria.

E. DUMPING

1. Normal value

1. Methodology for the construction of normal value

(10) As no arguments have been advanced concerning the methodology used for the determination of constructed normal value following the adoption of provisional measures, the findings as set out in recitals 27 to 31 of the Provisional Duty Regulation are hereby confirmed.

2. Cost of production

(11) Following the adoption of provisional measures, one company contested the use of the manufacturing cost as set out in its own accounting records for the determination of constructed normal value. It claimed that the manufacturing cost reported in its response to the questionnaire should be used instead because this was more accurate. It also claimed that since certain customs duties incurred for the product when sold domestically were allocated together with the manufacturing overheads on all products in its accounting records, a different allocation should be made for the dumping calculations.

(12) During the on-the-spot investigation it was found that the company's accounting records provided a much more detailed cost of manufacturing per model than that requested in the questionnaire. The investigation also revealed that there was a significant discrepancy between the manufacturing cost reported in the response to the questionnaire and that in the company's accounting records. Overall, the company underestimated in its response to the questionnaire the manufacturing cost of the models exported to the Community and overestimated the manufacturing cost of the domestic models.

The company did not provide any reason why the cost reported in the response to the questionnaire reflected more reasonably the cost associated with the production of the product than the cost in its accounting records. With regard to the allocation of certain customs duties together with the manufacturing overheads, the company was not able to explain, on the basis of information available from the reply to the Commission's questionnaire and the on-the-spot investigation, how those customs duties were treated in its accounts and how they were allocated to the different models. Therefore it was concluded that the per model manufacturing cost obtained from the company's accounting records should be used for the construction of normal value.

(13) Another company claimed that in constructing normal value the Commission should not have rejected the allocation of direct labour and manufacturing overheads made in the questionnaire response. It argued that since it had no precise allocation method for these cost items, it was compelled to create such an allocation method for the dumping investigation. However, the investigation revealed that the company had historically utilised an allocation method for direct labour and manufacturing overheads. It was also found that the ad hoc allocation used in the questionnaire response systematically raised the cost of high manufacturing cost models and reduced the cost of low manufacturing cost models as compared to the cost allocation historically utilised in its accounting records. According to this ad hoc allocation method, direct labour and manufacturing overheads were allocated on the basis of various factors, e.g. the size or type of parts used. However, the company did not show that these ad hoc allocation factors provided a more appropriate allocation of direct labour and manufacturing overheads as compared to the historically used allocation. It was therefore considered that there is no reason to deviate from the allocation method historically utilised by the company and that the latter method should be used in calculating the manufacturing cost for the construction of normal value.

2. Export price

(14) Since no arguments have been advanced concerning the determination of export price following the adoption of provisional measures, the findings as set out in the Provisional Duty Regulation are hereby confirmed.

3. Comparison

(15) One exporting producer claimed that certain payments made to a related company in order to prevent it from becoming insolvent were wrongly deducted as commissions from the export price.

(16) The on-the-spot investigation revealed that the exporting producer in question had actually paid certain commissions directly linked to specific export sales to the Community which have not been reported in the response to the questionnaire. In addition, it should be noted that the exporting producer had not disclosed in the response to the questionnaire the existence of the related company which received the commissions and was involved in export sales to the Community although such information was explicitly requested in the questionnaire. Consequently, the claim was rejected and these commissions were deducted from the relevant export prices.

(17) No other arguments have been advanced concerning the adjustments made to ensure a fair comparison as set out in the Provisional Duty Regulation and the findings as set out in the Provisional Duty Regulation are therefore confirmed.

4. Dumping margins

1. Methodology

(18) As explained in the Provisional Duty Regulation, the weighted average constructed normal value by model was compared on an ex factory basis with the weighted average export price by model. Since no change was made to the dumping calculations, the provisional dumping margins are hereby confirmed as follows.

2. Dumping margins for companies in the sample

(19) The comparison of the normal value and the export price duly adjusted showed the existence of dumping in respect of all...