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This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC)No 1728/1999
of 29 July 1999
imposing a definitive anti-dumping duty on imports of synthetic fibres of polyesters originating in
Taiwan and terminating the proceeding in respect of imports of synthetic fibres of polyesters
originating in the Republic of Korea
(OJ L 204, 4.8.1999, p. 3)
Corrected by:
►C1Corrigendum, OJ L 262, 8.10.1999, p. 23 (1728/1999)
NB: This consolidated version contains references to the European unit of account and/or the ecu, which from 1 January 1999
should be understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) andCouncil Regulation (EC) No 1103/97(OJ L 162, 19.6.1997 , p. 1).
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COUNCIL REGULATION (EC)No 1728/1999
of 29 July 1999
imposing a definitive anti-dumping duty on imports of synthetic
fibres of polyesters originating in Taiwan and terminating theproceeding in respect of imports of synthetic fibres of polyesters
originating in 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 membersof the European Community (
1), and in particular Article 9 and Article
11 thereof,
Having regard to the proposal submitted by the Commission after
consulting the Advisory Committee,
Whereas:
A.PROCEDURE
1.Previous investigations
(a)Taiwan
(1)In December 1988 the Council, by Regulation (EEC) No 3946/
88 (2); imposed definitive anti-dumping duties on imports of
synthetic fibres of polyester (hereinafter referred to as ‘PSF')originating, inter alia, in Taiwan.
Subsequently in September 1990, following a request lodged by
the ‘Association of Importers of Synthetic Polyester Fibres' aswell as a request from exporters in some of the countriesconcerned, the Commission initiated a review of Regulation(EEC) No 3946/88, in accordance with Article 14 of Regulation(EEC) No 2423/88 (
3). As a result of this review, in October 1992
the Council, by Regulation (EEC) No 3017/92 (4) modified the
anti-dumping duties in force with respect, inter alia , to Taiwan.
(b)Republic of Korea
(2)In January 1993 the Council, by Regulation (EEC) No 54/93 (5)
imposed definitive anti-dumping duties on imports of PSF origin-ating,interalia, in the Republic of Korea (hereinafter referred to
as ‘Korea').
(c)Measures in for against other countries
(3)The Council, by Regulation (EEC) No 3017/92, modified the
anti-dumping measures against, inter alia , Romania, Turkey, the
Republics of Serbia and Montenegro and the former YugoslavRepublic of Macedonia and repealed the measures on importsfrom Mexico and the United States of America. The anti-dumping measures for the remaining abovementioned countrieslapsed on 23 October 1997. Finally, the Council, by Regulation(EC) No 1490/96 (
6), imposed definitive anti-dumping measures
on imports of PSF originating in Belarus. In conclusion, the
(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC)
No 905/1998 (OJ L 128, 30.4.1998, p. 18).
(2) OJ L 348, 17.12.1988, p. 49.
(3) OJ L 209, 2.8.1988, p. 1.
(4) OJ L 306, 22.10.1992, p. 1.
(5) OJ L 9, 15.1.1993, p. 2.
(6) OJ L 189, 30.7.1996, p. 13.
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anti-dumping measures presently in force concern imports origin-
ating in Taiwan, Korea and Belarus.
2.Request for review
(4)Following the publication of two notices of impending expiry of
the anti-dumping measures in force on imports of PSF origin-ating,inter alia, in Taiwan(
1) and,inter alia , in Korea(2), the
Commission received, in July and August 1997respectively,requests to review the measures concerning these two countriespursuant to Article 11(2) of Council Regulation (EC) No 384/96(hereinafter referred to as the ‘Basic Regulation')in respect of thetwo abovementioned countries.
The requests were lodged by the ‘International Rayon and
Synthetic Fibres Committee' (IRSFC) acting on behalf ofCommunity producers whose collective output constitutes amajor proportion of the total Community production of theproduct concerned.
(5)The requests were based on the grounds that the expiry of themeasures would be likely to result in the continuation or recur-rence of dumping and injury to the Community industry. Havingdetermined, after consulting the Advisory Committee, that suffi-cient evidence existed for the initiation of a review, the Commis-sion initiated an investigation(
3) pursuant to Article 11(2) of the
Basic Regulation. Although the requests for expiry reviews werelodged in the framework of two distinct proceedings they concernimports of the same product. Therefore both reviews have beenjoined for reasons of good administration into one investigation.
3.Investigation
(6)The Commission officially advised the Community producers
supporting the review request, the exporting producers, importersand users known to be concerned as well as the representatives ofthe exporting countries, and gave the parties directly concernedthe opportunity to make their views known in writing and torequest a hearing.
(7)The Commission sent questionnaires to the parties known to beconcerned and received replies from eight Community producers,from four Taiwanese and five Korean exporting producers. TheCommission also sent questionnaires to a large number ofeconomic operators understood to be or to represent purchasers,users and importers of PSF in the Community. Only two userassociations replied.
(8)The Commission sought and verified all information it deemednecessary for the purposes of a determination of dumping, injuryand Community interest. Verifications were carried out at thepremises of the following companies:
(a) Exporting producers:
— TAIWAN
— Nan Ya Plastics Corporation, Taipei,— Shingkong Synthetic Fibres Corporation, Taipei,— Tuntex Distinct Corporation, Taipei,— Far Eastern Textile Corporation, Taipei;
— KOREA
— Saehan Industries Inc. (formerly Cheil Synthetics
Textiles Inc.), Seoul,
(1) OJ C 125, 22.4.1997, p. 4.
(2) OJ C 213, 15.7.1997, p. 4.
(3) OJ C 321, 22.10.1997, p. 12.
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— Daehan Synthetic Fiber Corporation, Ltd, Seoul,
— Kohap Ltd, Seoul,— Samyang Corporation, Seoul,— Sunkyong Industries Ltd, Seoul;
(b) Community producers:
— Hoechst AG, Frankfurt/Main, Germany,— Tergal, Gauchy, France,— Montefibre Spa, Milano, Italy,— Catalana de Polimers, Barcelona, Spain.
(9)The investigation of dumping covered the period from l October
1996 to 30 September 1997(hereinafter referred to as the ‘invest-igation period' or ‘IP'). The examination of the situation of theCommunity industry covered the period from 1994 up to the endof the investigation period.
(10)The present review exceeded the period of one year within whichit should normally have been concluded pursuant to Article 11(5)of the Basic Regulation, due to the complexity of the invest-igation, and in particular due to the difficulties in obtaining andassessing data concerning the currency devaluation in the FarEast and its impact on the likelihood of continuation or recur-rence of injurious dumping.
(11)All parties concerned were informed of the essential facts andconsiderations on the basis of which it was intended to recom-mend the maintenance of the existing measures in respect ofimports originating in Taiwan and to terminate the proceeding inrespect of imports originating in Korea. They were also granted aperiod within which to make representations subsequent to thesedisclosures. The comments of the parties were considered and,where appropriate, the findings have been modified accordingly.
B.PRODUCT CONCERNED AND LIKE PRODUCT
1.Description of the product concerned
(12)The product concerned by this investigation is the same as in the
previous investigations, namely synthetic staple fibres of poly-ester, not carded, combed or otherwise processed for spinning; itis commonly referred to as polyester synthetic fibres (PSF) andcurrently classifiable within CN code 5503 20 00.
This product is a basic material used at various stages of the
manufacturing process of textile goods, depending on the natureof textiles concerned. Around 60 % of the Community consump-tion of PSF is used for spinning, that is to say manufacturingfilaments for the production of textiles, after mixing or not withother fibres such as cotton or wool. Approximately 25 % is usedfor filling, that is to say the stuffing or padding of certain textilegoods (for example cushions, car seats, jackets) while theremaining 15 % is used as such for other non-woven applications,in particular the production of carpets. The product in question issold with different quality specifications: the A-grade corre-sponds to the regular quality, while the substandard grades aredenominated as B and C-grades. The investigation showed thatonly the A-grade quality was exported to the Community. ThePSF producers classify the product in different types according totheir own criteria, which are mainly based on its application,thickness and length of the fibre.
(13)Taiwanese exporting producers requested that non-woven andspecial fibres, i.e. PSF having special features, such as conjugatehollow fibres, low-melt fibres and black fibres should be consid-ered as a product different from the above defined product andexcluded from the scope of the present investigation.
However, the investigation showed that, although there are
several types of PSF having various features in order to meetspecific needs, they have the same basic physical characteristics.
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In addition, the market of this product is in fact formed byoverlapping series of PSF types with no clearly defined bounda-ries between them.
Accordingly, it was found that any one specific feature did not
render the allegedly special PSF different and that, therefore, theyall should be covered by the scope of the present proceeding.
All types of PSF were therefore considered as one single product
for the purpose of this investigation.
2.Like product
(14)The investigation showed that the various types of PSF manufac-
tured and sold on the Taiwanese and Korean market, despiteminor differences in length, thickness or quality, were alike to thePSF types exported from these countries to the Community, inthe meaning of Article 1(4) of the Basic Regulation.
(15)Taiwanese exporting producers alleged that their exportsconsisted mainly of non-woven or specialty fiber which are notwidely produced by the Community industry and clearly differ inall aspects from the PSF produced by the Community industry,which allegedly consists mostly of regular spinning and hollowfibres. The investigation has shown that specialty fibres representonly a minor part of Taiwanese exports to the Community, whilethe vast majority of these exports consist of spinning and hollowfiber. Moreover, there is also significant Community productionof specialty and non-woven fibres. In any event, as stated inrecital 13 it has been established in this investigation that non-woven and specialty fibres form a single product together withthe rest of the PSF types.
Consequently, the PSF types exported from Taiwan and Korea to
the Community were alike to the PSF types produced by theCommunity producers and sold within the Community market inthe meaning of Article 1(4) of the Basic Regulation.
C.DUMPING AND LIKELIHOOD OF RECURRENCE OF
DUMPING
1.Preliminary remarks
(16)In accordance with Article 11(2) of the Basic Regulation, the
purpose of the present review was to determine whether or notthe expiry of the measures would lead to a continuation orrecurrence of dumping, in particular by examining whetherdumping continued to take place after the adoption of anti-dumping measures.
(a)Taiwan
(17)Out of the five Taiwanese exporting producers who replied to the
questionnaire, one declared no exports to the Community for theinvestigation period and stated its availability to cooperate in theinvestigation. Moreover two exporting producers, Tuntex DistinctCorporation and Shingkong Synthetic Fibres Corporation, hadexports to the Community for less than 100 tonnes each duringthe investigation period. Given the low volume of the exportsmade by these two Taiwanese companies and hence the lack ofrepresentativeness of their corresponding export prices, it has notbeen considered appropriate to calculate, on this basis, thedumping margin for these two companies.
(b)Korea
(18)All five Korean exporting producers who replied to the question-
naire had made significant exports of PSF to the Community inthe investigation period.
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2.Normal value
(a)Taiwan
(19)For the reasons given in recital 17, normal values have been
established only for two Taiwanese exporting producers, whichaccounted for virtually the totality of the Taiwanese exports ofPSF to the Community during the investigation period. In bothcases, normal value has been determined for each type of PSFproduced by the companies in question and exported to theCommunity.
In the case of one exporting producer normal value per product
type was entirely based on the prices paid in the ordinary courseof trade by independent customers in the domestic market withregard to sales made in representative quantities, in accordancewith Article 2(1) and 2(2) of the Basic Regulation.
For the other exporting producer it was found that there were no
or insufficient domestic sales of the like product in respect ofsome types of PSF exported to the Community. In these cases,and since prices of the other cooperating exporting producercould not be used, normal value was constructed on the basis ofthe costs of manufacturing of these types of PSF plus a reason-able amount for selling, general and administrative cost and forprofit, in accordance to Article 2(3) of the Basic Regulation. Inorder to determine the reasonable amount for selling, general andadministrative cost and for profit the actual data pertaining toproduction and sales, in the ordinary course of trade, of the likeproduct by this exporting producer have been used, in accordancewith Article 2(6) of the Basic Regulation. Normal value for theremaining exported product types was based on the prices paid inthe ordinary course of trade by independent customers in thedomestic market, in accordance with Article 2(1) and 2(2) of theBasic Regulation, since domestic sales both overall and for thetypes in question were made in representative quantities.
(b)Korea
(20)Normal value was based on the prices paid in the ordinary course
of trade by independent customers in the domestic market withregard to sales made in representative quantities, in accordancewith Article 2(1) ) and 2(2) of the Basic Regulation. For producttypes which were not sold in representative quantities or not infine ordinary course of trade on the domestic market, the normalvalue has been constructed in accordance with Article 2(3) of theBasic Regulation since prices of other cooperating exportingproducer could not be used. In this respect, selling, general andadministrative costs and profits have been established in accord-ance to Article 2(6) of the Basic Regulation in the same way asfor Taiwan.
3.Export price
(21)For exporting producers from both countries export prices were
established on the basis of the prices actually paid by indepen-dent buyers in the Community in accordance with Article 2(8) ofthe Basic Regulation.
4.Comparison
(22)For the purpose of ensuring a fair comparison between normal
value and export price, account was taken of differences infactors which were claimed and demonstrated to affect compar-ability in accordance with Article 2(10) of the Basic Regulation.In this respect, adjustments were made for inland and oceanfreight, insurance, handling, loading and ancillary costs, creditcosts, commissions and import charges.
Two Taiwanese exporting producers submitted and demonstrated
that a quantity discount was granted to the domestic customersbuying more than a certain volume of PSF per year. These
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exporting producers alleged that all Community customers bene-
fited from the same discount, though not indicated in the invoice,by reason of their purchase quantities in excess to the quantityabove which a discount was granted. Therefore, to ensure a faircomparison, an adjustment corresponding to the discount grantedto the large domestic customers has been claimed for the smalldomestic customers.
In this respect, it is noted that an adjustment for quantities
pursuant to Article 2(10)(c) of the Basic Regulation can only begranted in respect of any price reductions actually given for thepurchase of different quantities. Moreover, it was found that notall Community customers purchased a quantity of the product inquestion in excess to that which would have entitled to thequantity discount during the investigation period. On thecontrary, the share of export sales to small customers in theCommunity was very close to that of domestic sales to smallcustomers, which indicates that both the domestic and the exportmarket, have a similar pattern in terms of customers. Conse-quently, only the allowance for the quantity discount which wasactually granted by the exporting producers to their largedomestic customers is justified in view of a fair comparison.
5.Dumping margin
(23)The weighted average normal value per type of PSF was
compared to the weighted average export price of the corre-sponding type, in accordance with Article 2(11) of-the BasicRegulation, on an ex-work basis and at the same level of trade.
The comparison showed the existence of dumping for the two
Taiwanese and for four of the Korean exporting producers inves-tigated, the dumping margin being equal to the amount by whichnormal value, so established, exceeded the price for export to theCommunity.
(24)The weighted average dumping margin, as a percentage of theCIF Community-frontier import price, is significant for the twoTaiwanese exporting producers, Far Eastern Textile Corporationand Nan Ya Plastics Corporation, covering virtually the total ofthe Taiwanese exports to the Community. Given the pricingpolicy followed by the two exporting producers in question it canbe concluded that dumping would continue or even increase ifthe measures would be removed. No dumping margin has beencalculated for the other three co-operating Taiwanese exportingproducers for the reasons given in recital 17. However, theCommission examined the likelihood of dumping to recur in casethe measures were removed. On the basis of the informationreceived from two of the Taiwanese companies representing thegreat majority of the total sales volume, it has been found thattheir exports to countries other than the Community are made atdumped prices. As these exports represent the major part of thesecompanies’ sales, it can be concluded that given their pricingpolicy for exports, dumped exports to the Community market arelikely to resume should the measures lapse.
(25)Taiwanese exporting producers submitted that any margin ofdumping is offset by the devaluation of the Taiwanese currency(NT$) against the USD which occured after the investigationperiod. It was further alleged that the level of the NT$ against theUSD in the first quarter 1998 is expected to remain stable for thecoming years and that the decrease of the price in USD of PTA,the main raw material for the production of PSF which thecompanies concerned buy in USD, has more than compensatedfor the depreciation of the Taiwanese currency against the USD.
The issue was examined. Indeed the depreciation of the NT$
against the USD, i.e. the currency in which the export prices tothe Community are generally denominated, amounted to almost17% during the first quarter of 1998 in respect of the averagefound during the investigation period. However, a recovery of theNT$ was observed in the rest of 1998 so that the depreciation
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recorded at the beginning of 1999 was limited to 14 %. More-over, in the year 2000 a further reduction of the depreciation toless than 10 % (as compared to the level prevailing in the invest-igation period) is expected according to financial forecastssubmitted by the exporting producers. According to the sameforecasts this recovery trend of the NT$ is poised to continue inthe following years. Hence, given the fluctuating nature of thedepreciation of the NT$, the argument put forward by the Taiwa-nese exporting producers cannot be accepted. In any event, it hasto be noted that by the very nature of exchange rate changesthese can not be foreseen with any reliability and changes thathave occurred in the past are not necessarily a guide to the future.
(26)With regard to Korea, the following should be noted: the meas-ures under review are based on dumping margins determined inthe previous investigation and these margins, with the exceptionof the residual dumping margin, would be considered as de
minimisunder the current Basic Regulation. The level of the
original margins was low and that situation has not changed.Indeed, in this investigation, the weighted average dumpingmargin established, expressed as a percentage of the cifCommunity frontier import price, was 1,8 %. Finally, no indica-tion was found-that the removal of the existing measures wouldlead to a change of this situation in the foreseeable future. It wastherefore concluded that there was no likelihood of recurrence ofdumping.
D.COMMUNITY INDUSTRY
(27)Two of the nine Community producers supporting the review
request did not cooperate during the the investigation. The invest-igation showed that the share of the total Community productionheld by the seven co-operating Community producers supportingthe review request, during the investigation period amounted tomore than 65 % of total Community production of the productconcerned. Therefore, these producers constitute the Communityindustry within the meaning of Article 4(1) of the Basic Regula-tion. Hereinafter, these co-operating Community producers arereferred to as the ‘Community industry'.
E.ANALYSIS OF THE SITUATION IN THE COMMUNITY
MARKET
1.Consumption in the Community
(28)Community consumption was based on the combined volume of
sales into the Community market of the Community industry,sales of the remaining non-cooperating Community producersand Eurostat information on volume of total imports. The volumeof sales of the Community producers not co-operating in theproceeding was determined, on the basis of available information,at around 30 % of the total sales of all Community producers.
On the above basis, Community consumption of PSF followed
overall a slight decreasing tendency over the period considered: itwent from 540 000 tonnes in 1994 to 490 000 tonnes in 1995and, after a temporary fall back to 460 000tonnes in 1996, to520 000 tonnes during the investigation period, which representsan overall decrease of 3 % over the period considered.
2.Imports in the Community from Taiwan and Korea
(a)Imports from Korea
(29)It was concluded that the situation on the Community PSF
market with respect to imports originating in Korea-should not beanalysed, due to the conclusion reached on dumping and likeli-hood of recurrence of dumping with regard to these imports.
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(b)Volume, value and market share of imports from Taiwan
(30)The volume of imports from Taiwan increased from around 8 000
tonnes in 1994 to around 27000 tonnes during the investigationperiod, representing an increase of around 240 %. The value ofimports from Taiwan increased from ECU 9,9 million in 1994 toECU 29,3 million during the investigation period, representing anincrease of 196 %.
In terms of market share, based on total Community consump-
tion, the market penetration of the dumped imports from Taiwanrose from 1,5 % to 5,3 during the investigation period in volumeterms — an increase of 253 %.
(c)Prices of imports from Taiwan
(31)Prices of the imports from Taiwan decreased from 1994 to the
investigation period by 14 %. It should be noted that these priceswere found to be lower than those of the Community industryover the whole period considered.
(d)Price undercutting of imports from Taiwan
(32)For the determination of price undercutting, data referring to the
investigation period were analysed. Price undercutting was estab-lished on the basis of a comparison of the export price withprices charged by the Community industry at the same level oftrade. The sales prices of the Community industry consideredwere those to independent customers, adjusted where necessaryto an ex-works level, i.e. excluding transport costs. Adjustmentswere made to the exporting producers’ selling prices (cifCommunity frontier) to take account of customs and anti-dumping duty paid: All prices were compared after excludingdiscounts and rebates.
(33)The results of the comparison (on a weighted-average toweighted-average basis) showed for imports from Taiwan aweighted average price undercutting margin, expressed as apercentage of the Community industry’s ►
C1average selling
prices, of 16,7% ◄.
This is to be compared with the undercutting found in the
previous investigation which ranged from 22 % to 30 % forTaiwan.
The exporting producers’ undercutting level, on an average basis,
remained important, despite a certain upward effect on importprices of the antidumping measures in force.
3.Economic situation of the Community industry
(a)Preliminary remarks
(34)The examination of the situation of the Community industry
covers the period from 1994 to the end of the investigationperiod. It should be noted that during this period anti-dumpingmeasures as mentioned in recital 1 and following were in forcewith a resulting effect on the Community industry.
(b)Production, capacity and capacity utilisation
(35)Production of the Community industry decreased during the
period considered, going from around 374 000 tonnes in 1994 toaround 343 000 tonnes in the investigation period. This decreasereflected the closure of production facilities of a number ofcompanies of the Community industry. This represents an overalldecrease of 8 %. Production levels decreased at a higher rate thanCommunity consumption; which decreased by 3 % during theperiod considered.
(36)As regards capacity, it should be noted that the production facili-ties for PSF are also used in the production of other products notconcerned by the present proceedings, e.g. tow and tops. As a
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consequence, the capacity normally attributed to the production
of the product concerned by the Community industry was esti-mated. It was found that capacity decreased from 432 300 tonnesin 1994 to 401 500 tonnes during the investigation period, whichrepresents a decrease of 7%. This is broadly in line with thereduction of production as outlined in the preceding recital. Therate of capacity utilisation decreased slightly during the periodconsidered going from 86,6 % in 1994 to 85,7% in the invest-igation period.
(c)Sales volume of the Community industry
(37)The volume of sales of the Community industry on the
Community market decreased during the period considered, withthe sales levels at 330 000 tonnes in 1994 and 295 000 tonnes inthe investigation period. This represents an overall decrease of11 %. This trend shows that the sales of the Community industrydid not follow the trend in consumption, which decreased by 3during the period considered.
(d)Market share
(38)The development of sales volume compared to that of Communit
consumption shows that the market share held by the Communityindustry decreased during the period considered. The marketshare of the Communit industry decreased from 61 % in 1994 to60 % in 1995, 59 % in 1996 and 56 % in the investigation period.The overall loss of market share was five percentage pointsbetween 1994 and the investigation period.
(e)Stocks
(39)Stocks significantly increased by 33 % between 1994 and the
investigation period.
(f)Average sales price and price evolution
(40)The weighted average prices of the product concerned sold by the
Community industry on the Community market fluctuated overthe period considered, and overall they increased by 3 %.
It should be noted that prices of PSF have been influenced for all
operators on the market by the evolution of prices of the basicraw materials like pure terephthalic acid (PTA), dimethyltereph-thalate (DMT) and glycol, representing about 60 to 70 % of thecost of production of the finished product. Indeed, essentially,due to a worldwide shortage of these raw materials, starting at theend of 1993 and continuing into 1994 and 1995 prices increased,reflected in a corresponding increase in the cost of production.Nevertheless, the trend experienced for the prices of these rawmaterials reversed from 1995 onwards.
(g)Profitability
(41)In 1994, the Community industry incurred a weighted average
loss of 3,5 %, expressed as a percentage of net sales. Subse-quently, the financial situation improved, especially during 1995(profit of 7,5 %). This resulted partially from the fact that alloperators on the Community market were able to raise theirprices after an increase in the raw material costs (see recital 40),and the Community industry could improve its financial situationdue to a reduction in overhead costs. It should be noted however,that the Community industry showed a downward trend of itsfinancial results, from 1995 onwards, going from a profit of7,5 % to a profit of 5,6 % in the investigation period.
(h)Investment
(42)Yearly investments made by the Community industry were
important during the period under investigation, going from ECU58 million in 1994, to ECU 44 million in 1995, with a peak in
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1996 of ECU 81 million. During the investigation period invest-ment amounted to ECU 14 million. It should be noted that thissignificant effort represents, for the most part, investments inreplacement machinery as part of an overall-restructuringpogram.
(i)Employment
(43)Due to a certain degree of reduction in production capacity and
restructuring, employment went down from around 2 300 in 1994to around 2 000 during the investigation period, i.e. by 9,2 %.
4.Conclusion on the situation of the Community industry
(44)The above analysis has revealed that the economic indicators
such as production, capacity utilisation, sales and stockscontinued to show negative trends. Although this has to be seenin the context of slightly contracting consumption, it has to beborne in mind that the Community industry lost market shareduring this period. Furthermore, the investigation has shown thatthe Community industry has suffered significant price pressureand substantial price undercutting has been established forimports originating in Taiwan.
(45)As far as the financial situation of the Community industry isconcerned, it should be noted that profits were made in 1995 afterthe increase of the prices of the raw material and the initiation ofan anti-dumping investigation against imports from Belarus.Nevertheless, the Community industry showed a downward trendof its financial results from 1995 onwards, coinciding with theincreased presence of imports from Taiwan filling the vacuumleft by imports from Belarus.
(46)In the light of the foregoing analysis, it was concluded that theCommunity industry has continued to be in a weak economicsituation.
F.LIKELIHOOD OF RECURRENCE OF INJURY
(47)Further to the analysis of the existence of dumping as well as the
likelihood of recurrence of dumping with respect to importsoriginating in Taiwan and the analysis of the situation of theCommunity industry, it was examined whether there was a likeli-hood of recurrence of injury, should the measures applicable tothe imports from Taiwan be removed.
1.Analysis of the situation of the exporting country produ-
cers concerned
(48)It has been found that from 1995 to the investigation period totalproduction capacity in Taiwan has increased by 21,3 % i.e.135 000 tonnes. Taiwanese exporting producers foresee to furtherincrease their production capacity and capacity utilization to alevel above 90 % in 1998, leading to a further increase of produc-tion of 30 000 tonnes.
(49)It was also found that the volume of imports originating inTaiwan increased substantially between 1994 and the invest-igation period (+242 %), despite the anti-dumping measures inforce. It should be noted that, between 1995 and 1996, thevolume of these imports into the Community almost doubled andbetween 1994 and the investigation period more than tripled. Thecorresponding market share increased significantly between 1994and the investigation period from 1,5 % to 5,3 %. Furthermore, ithas been established that during the investigation period theseimports were made at prices significantly undercutting (167%)those of the Community industry.
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2.Impact of imports from Taiwan in the absence of anti-
dumping measures
(50)Concerning the recurrence of injurious dumping, it was consid-ered that the prices obtained in the absence of anti-dumpingmeasures would lead to a price undercutting of 24,5 %. Themethodology used in order to calculate this figure was the sameas that described in recital 32 except that no anti-dumping dutywas added to the import price.
(51)In the light of the above it is expected that imports from- Taiwaninto the Community will further increase and their prices fallshould the anti-dumping measures in force be removed. It wasestablished that even with measures in force the volume ofTaiwanese imports increased. Furthermore, it cannot be excludedthat, in the absence of measures, the relatively higher price in theCommunity market would constitute an incentive to redirectexports from Taiwan which at present are shipped to other thirdcountries, into the Community market.
(52)As far as the profitability level of the Community industry isconcerned, two basic hypotheses can be foreseen in the event thatanti-dumping measures lapse against imports originating inTaiwan. First, the Community industry would continue to sell atthe same prices, resulting in a decrease of its market share withdirect consequences, in the long run, on its profitability. Second,the Community industry will drop its prices for some of its sales,where the competition of Taiwan will be most intense, resultingin a decrease of its profitability. It has been estimated that in thefirst scenario the Community industry would further lose 2,5 %market share, accompanied by a drop in profitability of 9,5 % inthe short term. If the Community industry followed the down-ward trend on prices, profitability would drop from 5,6 % to2,7%. Consequently, in each scenario the profitability of theCommunity industry would suffer from dumped imports origin-ating in Taiwan causing injury.
3.Conclusion on recurrence of injurious dumping
(53)During the period under investigation prices of dumped imports
from Taiwan decreased by 14 %, in a period of time whenCommunity’s industry prices increased by 3 %. This had theeffect that the market share of imports from Taiwan increasedfrom 1,5 % in 1994 to 5,3 % in the investigation period, i.e. by253 %. Furthermore, when imports from Taiwan started to fill thevacuum left by Belarus, the financial situation of the Communityindustry took a downward turn.
(54)The significant production capacities, some of them only recentlyinstalled, in Taiwan, the attractiveness of the prices prevailing onthe Community market and the consequent risk of an export driveclearly suggest that the existing antidumping measures in respectof Taiwan should be maintained to avoid a recurrence of injur-ious dumping.
G.COMMUNITY INTEREST
1.Introduction
(55)It should be recalled that in the previous investigations, the
adoption of measures was considered not to be against theinterest of the Community. Furthermore, it should be noted thatthe present investigation is a review, thus analysing a situation inwhich anti-dumping measures have already been in place. Conse-quently, the timing and nature of the present investigation allowsan assessment of any negative undue impact on the partiesconcerned by the anti-dumping measures imposed.
On this basis it was examined, whether, despite the conclusions
on a likelihood of a continuation and recurrence of injuriousdumping, it could be clearly be concluded that it is not in theCommunity interest to maintain measures in this particular case.
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For this purpose, and pursuant to Article 21(1) of the Basic
Regulation, the impact of measures for all parties involved in theproceeding and also the consequences of not maintaining meas-ures against Taiwan was considered.
2.Interest of the Community industry
(56)The Community industry has for almost a decade been suffering
from low priced/dumped imports of PSF. The objective of theanti-dumping measures under review, to re-establish faircompetition in the Community market between the Communityproducers and their exporting counterparts in third countries, hasnot been fully met as it has been shown above.
The Community industry has been making considerable efforts to
improve its productivity in recent years, in an attempt to lower itscost of production and to enhance its competitiveness in thisprice sensitive market. The Community industry deployed partic-ular efforts of rationalisation during the investigated period. OneCommunity producer shut down two production facilities in aneffort to reduce costs and to improve its productivity.
In view of the situation of the Community industry, in particular
the fact that it was prevented from fully recovering from theeconomic difficulties resulting from dumped imports, it is consid-ered that, in the absence of measures, the further deterioration ofthe situation of the Community industry is quite probable. Thiscould entail a severe reduction in employment and may ulti-mately lead to a reduction of the number of producers in theCommunity.
Furthermore, the ongoing restructuring efforts made by the
Community industry show that it is not ready to abandon thissegment of production. The maintaining of anti-dumping meas-ures would therefore be in the interest of the Communityindustry.
3.Impact on users
(57)No Community user answered to the questionnaire sent by the
Commission during the current investigation. No evidence wasprovided on the incidence of the measures in force, in their costof production. Consequently, no analysis could be carried outconcerning the impact of the measures in force on the cost ofproduction of users.
(58)Two Community user associations submitted information andrequested the termination of the measures. In this submissions itwas argued that the Community industry was not able to meet thedemand. Moreover, certain users of one type of PSF, i.e. fiberfill,informed the Commission that the major Community producer ofthis type was not in a position to meet their needs. Nevertheless,it seems that no particular shortage occurred on the Communitymarket during the period examined. The aim of anti-dumpingmeasures is not to foreclose the Community market from imports,but rather to level the unfair trade practices and to prevent thedistorting effects of dumped and injurious i/nports. In thisspecific case, it seems that the measures did not prevent importsto enter the Community market. As it was already mentionedimports from Taiwan increased significantly during the periodunder investigation.
Furthermore, it was found that, in view of the fact that the
Community industry has a significant production capacity, andgiven the presence of other suppliers located outside of theCommunity, the risk of a general supply shortage is very low, ifnot non-existant.
(59)Furthermore, some interested parties argued that the internationalcompetitive position of products incorporating PSF, produced inthe Community, is jeopardised by the continuation or re-imposi-tion of the anti-dumping measures. This argument cannot beaccepted because PSF used for the production in the Community
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of products for export can enter the Community without any dutyunder the inward processing arrangements. Moreover, these inter-ested parties had the opportunity, due to the fact that the anti-dumping measures under review are in force for at least fiveyears, to submit evidence about the incidence of the measures ontheir cost of production and their international competitiveness,but no information in this respect was received.
On the basis of the above, and since the measures have been in
place for a certain period, and would be maintained at the samelevel, it can be concluded that this would not imply a deteriora-tion, if at all, of the situation of the users.
4.Consequence for competition in the Community market
(60)It has been claimed that the level of competition on the
Community PSF market would be affected by the continuation ofthe anti-dumping duty since it would create a stronger positionfor the Community industry.
As far as the competitive environment in the Community market
is concerned, the measures in force are not such as to foreclosethe Community market to the exporting producers under review.Therefore, they will allow the continued presence of theseexporting producers in the market. It should be recalled that theuser industries and other economic operators have alwaysenjoyed the presence of a wide range of competitors in themarket.
Thus, the benefit of a market driven by a number of suppliers
would still be available for users of the product concerned.
5.Conclusion
(61)On the basis of the above facts and considerations in particular,
and having examined the arguments submitted by the Communityindustry and users associations of the product concerned, it wasconcluded, that there were no compelling reasons not to maintainthe measures in force concerning imports from Taiwan.
H.TERMINATION OF THE PROCEEDING IN RESPECT OF
KOREA
(62)In view of the findings set out above in recital 26, the anti-
dumping measures currently in force against Korea are no longerwarranted. In accordance with Article 11 in conjunction withArticle 9 of the Basic Regulation, where, after consultation,protective measures are unnecessary and there is no objectionraised within the Advisory Committee, the investigation orproceeding shall be terminated.
(63)In the light of the above, the Commission has concluded that thecontinuation of protective measures currently in force againstKorea is unnecessary and that the proceeding should be termi-nated
I.ANTI-DUMPING MEASURES
(64)It follows from the above that, as provided for by Article 11 (2)
of the Basic Regulation, the anti-dumping duties on imports ofPSF originating in Taiwan imposed by Regulations (EEC) No3017/92 should be maintained,
HAS ADOPTED THIS REGULATION:
Article 1
1. A definitive anti-dumping duty is hereby imposed on imports of
synthetic fibres of polyesters, not carded, combed or otherwiseprocessed for spinning, currently classifiable within CN code5503 20 00 and originating in Taiwan.
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2. The duty, calculated on the basis of the net free-at-Community-frontier price of the product; before duty, shall be 13 % for syntheticfibres of polyesters originating in Taiwan (additional taric code 8195),except for synthetic fibres of polyesters produced by the companieslisted below, to which the following rates shall apply:
— Far Eastern Textile Ltd, Taipei
(additional taric code 8192)6,8 %
— Nan Ya Plastics Corporation, Taipei
(additional taric code 8193)5,9 %
— Shingkong Synthetic Fibres Co., Taipei
(additional taric code 8194)13,0 %
Article 2
The anti-dumping proceeding concerning imports of synthetic fibres of
polyesters originating in the Republic of Korea is hereby terminated.
Article 3
Unless otherwise specified, the provisions in force concerning customs
duties shall apply.
Article 4
This Regulation shall enter into force on the day following is publica-
tion in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States.