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( 1 ) OJ NO L 339 , 31 . 12 . 1979 , P . 1 .

( 2 ) OJ NO L 116 , 28 . 4 . 1981 , P . 11 .

COUNCIL REGULATION ( EEC ) NO 2467/81

OF 24 AUGUST 1981

IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON POTATO GRANULES ORIGINATING IN CANADA

THE COUNCIL OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 3017/79 OF 20 DECEMBER 1979 ON PROTECTION AGAINST DUMPED OR SUBSIDIZED IMPORTS FROM COUNTRIES NOT MEMBERS OF THE EUROPEAN ECONOMIC COMMUNITY ( 1 ), AND IN PARTICULAR ARTICLE 12 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION , AFTER CONSULTATIONS WITHIN THE ADVISORY COMMITTEE SET UP BY ARTICLE 6 OF REGULATION ( EEC ) NO 3017/79 ,

WHEREAS THE COMMISSION , BY REGULATION ( EEC ) NO 1101/81 ( 2 ), IMPOSED A PROVISIONAL ANTI-DUMPING DUTY ON IMPORTS OF POTATO GRANULES ORIGINATING IN CANADA ; WHEREAS AT THE SAME TIME THE COMMISSION ACCEPTED VOLUNTARY UNDERTAKINGS , OFFERED BY CARNATION , ONE OF THE TWO CANADIAN EXPORTERS CONCERNED , TO INCREASE THEIR PRICES TO A LEVEL SUFFICIENT TO ELIMINATE THE DUMPING MARGIN FOUND AND EXEMPTED EXPORTS OF THE LATTER FROM THE APPLICATION OF THE PROVISIONAL DUTY ;

WHEREAS , WITH REGARD TO THE OTHER EXPORTER CONCERNED , VAUXHALL FOODS LTD , THE PROVISIONAL DUMPING MARGIN WAS ESTABLISHED BY TAKING ACCOUNT OF THE FACT THAT THIS COMPANY , DURING THE PERIOD OF INVESTIGATION , HAD SOLD SUBSTANTIAL QUANTITIES OF THE PRODUCTS CONCERNED AT A LOSS ON THE DOMESTIC MARKET ; WHEREAS NORMAL VALUE WAS ESTABLISHED , THEREFORE , ON THE BASIS OF THE CONSTRUCTED VALUE INCLUDING IN PARTICULAR A 6 % PROFIT MARGIN ; WHEREAS SUBSEQUENTLY VAUXHALL CONTESTED THE METHODS OF THE FINDING OF DUMPING AND IN PARTICULAR THE ADDITION OF THE 6 % PROFIT MARGIN ; WHEREAS IT WAS NOT NECESSARY TO EXAMINE THE MERITS OF THESE ARGUMENTS BECAUSE , FOR THE PURPOSE OF THE FINAL DETERMINATION OF THE DUMPING MARGIN , THE COMMISSION DETERMINED NORMAL VALUE ON THE BASIS OF SALES ON THE DOMESTIC MARKET MADE AT A PRICE WHICH WAS NOT LESS THAN THE COST OF PRODUCTION ; WHEREAS THESE SALES REPRESENTED APPROXIMATELY ONE-THIRD OF TOTAL DOMESTIC SALES VOLUME DURING THE PERIOD OF INVESTIGATION AND WERE CONSIDERED , THEREFORE , TO CONSTITUTE A RELIABLE BASIS FOR COMPARISON ;

WHEREAS THIS NORMAL VALUE WAS COMPARED WITH VAUXHALL ' S EXPORT PRICES , TRANSACTION BY TRANSACTION , ON AN EX-FACTORY BASIS ;

WHEREAS , FOR THE PURPOSE OF A FAIR COMPARISON BETWEEN NORMAL VALUE AND EXPORT PRICES , ACCOUNT WAS TAKEN OF THE FACT THAT CERTAIN VARIABLE COSTS SUCH AS COMMISSIONS PAID TO SALES AGENTS WERE ONLY INCURRED ON THE DOMESTIC MARKET ;

WHEREAS THIS COMPARISON SHOWED THAT EXPORTS TO THE COMMUNITY MADE BY VAUXHALL DURING THE PERIOD OF INVESTIGATION WERE DUMPED AT VARYING RATES , IN SOME INSTANCES UP TO 20 % , THE WEIGHTED AVERAGE MARGIN BEING 6.9 % ;

WHEREAS , WITH REGARD TO INJURY CAUSED BY THE DUMPED IMPORTS TO THE COMMUNITY INDUSTRY , NO ADDITIONAL INFORMATION HAS BEEN RECEIVED BY THE COMMISSION ; WHEREAS , HOWEVER , VAUXHALL ALLEGED THAT OWING TO A SHORTAGE OF POTATOES IN CANADA IN THE CURRENT CROP YEAR THEY WERE UNABLE TO SUPPLY SUBSTANTIAL QUANTITIES OF GRANULES TO THEIR EEC CUSTOMERS AND COULD NOT , THEREFORE , CAUSE ANY INJURY TO COMMUNITY PRODUCERS ; WHEREAS THIS ALLEGATION IS NOT SUPPORTED BY THE FACTS ESTABLISHED BY THE COMMISSION AND VAUXHALL DID NOT SUPPLY ANY SUPPORTING EVIDENCE IN RESPECT THERETO ; WHEREAS THE COMMISSION HAS THEREFORE DEFINITIVELY CONCLUDED THAT THE DUMPED IMPORTS HAVE CAUSED MATERIAL INJURY TO THE COMMUNITY INDUSTRY CONCERNED ;

WHEREAS VAUXHALL FOODS LTD HAVE VOLUNTARILY UNDERTAKEN TO INCREASE THEIR PRICES TO A LEVEL WHICH ELIMINATES THE INJURIOUS EFFECTS OF THEIR EXPORTS TO THE COMMUNITY ; WHEREAS THE COMMISSION HAS ACCEPTED THIS UNDERTAKING ;

WHEREAS , ALTHOUGH THE ONLY TWO COMPANIES KNOWN TO BE EXPORTING POTATO GRANULES TO THE COMMUNITY HAVE VOLUNTARILY UNDERTAKEN TO INCREASE THEIR EXPORT PRICES , PROTECTION OF COMMUNITY INTERESTS NEVERTHELESS REQUIRES THE IMPOSITION OF A DEFINITIVE ANTI-DUMPING DUTY , IN ORDER TO AVOID THE PRICE LEVELS ESTABLISHED BY THE UNDERTAKINGS BEING UNDER-CUT BY FUTURE EXPORTS MADE BY OTHER CANADIAN MANUFACTURERS ; WHEREAS THE LEVEL OF THIS DUTY SHOULD BE EQUAL TO THE RATE OF THE PROVISIONAL DUTY WHICH WAS APPLIED TO EXPORTERS OTHER THAN VAUXHALL , AND WHICH HAS NEVER BEEN CHALLENGED ; WHEREAS COMMUNITY INTERESTS ALSO CALL FOR THE DEFINITIVE COLLECTION IN THEIR ENTIRETY OF THE AMOUNTS SECURED BY WAY OF PROVISIONAL ANTI-DUMPING DUTY ;

WHEREAS IT IS APPROPRIATE , HOWEVER , TO EXCLUDE THE EXPORTS MADE BY VAUXHALL AND CARNATION , WHOSE UNDERTAKINGS HAVE BEEN ACCEPTED BY THE COMMISSION , FROM THE APPLICATION OF THIS DEFINITIVE DUTY ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

1 . A DEFINITIVE ANTI-DUMPING DUTY IS HEREBY IMPOSED ON POTATO GRANULES FALLING WITHIN COMMON CUSTOMS TARIFF HEADING NO EX 11.05 AND CORRESPONDING TO NIMEXE CODE EX 11.05-00 , ORIGINATING IN CANADA . THIS DUTY SHALL NOT APPLY TO POTATO GRANULES EXPORTED BY CARNATION INC ., CARNATION FOODS COMPANY LTD AND VAUXHALL FOODS LTD , CANADA .

2 . THE DUTY REFERRED TO IN PARAGRAPH 1 SHALL BE EQUIVALENT TO 4.481 EUROPEAN UNITS OF ACCOUNT PER 100 KG NET WEIGHT .

3 . THE PROVISIONS IN FORCE FOR THE APPLICATION OF CUSTOMS DUTIES SHALL APPLY TO THIS DUTY .

ARTICLE 2

THE AMOUNTS SECURED BY WAY OF PROVISIONAL ANTI-DUMPING DUTY IN ACCORDANCE WITH COMMISSION REGULATION ( EEC ) NO 1101/81 SHALL BE DEFINITIVELY COLLECTED .

ARTICLE 3

THIS REGULATION SHALL ENTER INTO FORCE ON THE DAY OF ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT BRUSSELS , 24 AUGUST 1981 .

FOR THE COUNCIL

THE PRESIDENT

P . WALKER