NoC 158/4 Official Journal of the European Communities 28. 6. 90 
The Commission is also, by means of publication of the 
present letter in the Official Journal of the European 
Communities, giving notice to the other Member States 
and third parties concerned to submit their comments. 
The Commission reminds your Government that 
according to the provisions of Article 93 (3) of the EEC 
Treaty no aid measure can be put into effect before the 
Article 93 (2) EEC procedure has resulted in a 
Commission final decision. 
The Commission draws your Government's attention to 
its letter of 3 November 1983 sent to all Member States 
regarding their obligations under Article 93 (3) of the 
EEC Treaty and to the communication published in the 
Official Journal of the European Communities No C 318 
Commission communication pursuant to Article 93 (2) of 
the EEC Treaty to other Member States and interested 
parties concerning aids which Germany has decided to 
grant to the firm Textilwerke Deggendorf GmbH. 
In the following letter, the Commission informed the 
German Government of its decision to open the 
procedure. 
By letter of the German Permanent Representation dated 
13 October, received on 19 October 1989, your 
Government informed the Commission of the intention 
to grant investment aids in favour of the company 
Textilwerke Deggendorf GmbH. 
Further information concerning the beneficiary and the 
aids were supplied, on request of the Commission, on 
9 March 1990; an extension of up to 4 May 1990 of the 
time to formulate a decision of the Commission was 
agreed by the German authorities on 2 April 1990. 
The intervention of the Federal and local authorities to 
be supplied via the Investitionszulagengesetz, approved 
by the Commission by letter of 7 December 1987, and 
the Bayerisches regionales Forderprogramm, approved 
by the Commission by letter dated 27 December 1988, 
provides for a 10 % grant for investment amounting to 
DM 45,2 million and for soft loans of DM 6 and 14 
million for a period of 8 and 12 years respectively at 5 °/o 
interest rate and two years of repayment delay. 
Taking into account the total amount of the investments 
and a reference rate of 9 °/o, the net grant equivalent of 
the different aids is worth about 13,41 %. of 24 November 1983, page 3 on the basis of which any 
aid provided illicitly, i.e., without waiting for the 
Commission's final decision resulting from the Article 93 
(2) EEC procedure, could be subject to a recovery order. 
The Commission hereby gives the other Member States 
and interested parties notice to submit their comments on 
the measures in question within one month from the date 
of publication of this notice to: 
Commission of the European Communities, 
200 rue de la Loi, 
B-1049 Brussels. 
The comments will be communicated to the Federal 
Republic of Germany. 
In both of its abovementioned letters the Commission 
expressly drew the attention of your authorities to the 
need to respect the rules arising from the sectoral 
disciplines on State aids. 
The investments matter of the aids concern the 
production of stockings and intermediate (DM 24 
million) and the preparation of combined (polyurethan 
and polyamid) elastic threads (DM 21,2 million). 
The EC market for yarns of polyamid is highly 
competitive, it is characterized by stagnant demand, 
capital intensive investments and reduced margins. The 
flow of intra-Community trade of polyamid yarns 
accounted for ECU 80 million in 1988 (ECU 70 million 
in the period from January to September 1989). The 
Deggendorf company is active both on the foreign and 
the domestic markets of polyamid threads, intermediate 
and women stockings. 
Accordingly, the aids supplied to the Textilwerke 
Deggendorf GmbH company do affect intra-Community 
trade and do fall under Article 92 (1) of the EEC Treaty. 
The discipline concerning State aids to the synthetic 
fibres industry, introduced in 1977, renewed every two 
years since then and most recently in 1989 (communi­
cation to the Member States of 6 July 1989) applies to 
the production of polyamid yarns of the Deggendorf 
GmbH company. The discipline reduces the range of the STATE AID 
C 14/90 
(Germany) 
(Articles 92 to 94 of the Treaty establishing the European Economic Community) 
(90/C 158/04) 
28. 6. 90 Official Journal of the European Communities NoC 158/5 
acceptable exceptions to the general restrictions on State 
aids only to the case of incentives for diversions from the 
sector towards other productions, while it expresses an 
overall unfavourable consideration for all measures 
which have the effect of increasing the net production 
capacity of synthetic fibres. For this reason none of the 
exceptions listed in Article 92 (3) of the EEC Treaty can 
apply to the productions of polyamid yarns and staples. 
Although none of the products concerned by the 
investments is covered directly by the present discipline 
on man-made fibres which concerns the manufacturing 
of upstream components (polyamid yarns), there is a risk 
of an indirect effect on the company's synthetic fibre 
production because of the effect it has, inter alia, on the 
company's overall budget. Furthermore, it is not possible, 
on the basis of the information which is presently 
available, to determine both whether a clear and total 
distinction can be made between the synthetic fibre 
production and the new investment. 
In the light of these observations, the Commission would 
inform the German Government that after considering 
the project of aids it has initiated the procedure laid 
down in Article 93 (2) of the EEC Treaty in their 
respect. 
The Commission hereby gives the German Government 
notice, as part of that procedure, to submit its comments 
within one month from the date of this letter. 
Your authorities should also provide all relevant infor­
mation concerning the mentioned aid measures to be 
granted. 
The Commission stresses the fact that the same company 
is beneficiary of aids received in the years 1981 to 1983 
for an amount of DM 6,12 million of grants and DM 
11 million of soft loans. On 21 March 1986, the 
Commission decided that those aids were incompatible 
with the common market and that they had to be repaid. Since the recovery procedure is still in process, the 
Deggendorf company is still beneficiary of the 
abovementioned sums and, consequently, the compe­
tition conditions continue to be distorted 
The Commission is also, by means of publication of the 
present letter in the Official Journal of the European 
Communities, giving notice to the other Member States 
and third parties concerned to submit their comments. 
The Commission reminds your Government that 
according to the provisions of Article 93 (3) of the EEC 
Treaty, no aid measure can be put into effect before the 
93 (2) EEC procedure has resulted in a Commission final 
decision. 
The Commission draws your Government's attention to 
its letter of 3 November 1983 sent to all Member States 
regarding their obligations under Article 93 (3) of the 
EEC Treaty and to the communication published in the 
Official Journal of the European Communities No C 318 
of 24 November 1983, page 3 on the basis of which any 
aid provided illicitly, i.e., without waiting for the 
Commission's final decission resulting from the Article 
93 (2) EEC procedure, could be subject to a recovery 
order. 
The Commission hereby gives the other Member States 
and interested parties notice to submit their comments on 
the measures in question within one month from the date 
of publication of this notice to: 
Commission of the European Communities, 
200, rue de la Loi, 
B-1049 Brussels. 
The comments will be communicated to the Federal 
Republic of Germany. 
'Scientific apparatus' Decision — refusal of relief from import duties 
(90/C 158/05) 
(Legal basis: Regulations (EEC) Nos 918/83 (') and 2290/83 (2)) 
File: XXI/B/3 — 014/89 
On 18 April 1989, the Italian Republic sent the 
Commission a request for the admission free of import 
duties of an apparatus known as 'Perkin Elmer — 
Differential Scanning Calorimeter, Model DSC-7, with 
Data Station computer, Model 3700'. The file was 
accepted on 7 December 1989 after a request for 
complementary information. 
(•) OJ No L 105, 23. 4. 1983, p. 1. 
(2) OJ No L 220, 11. 8. 1983, p. 20. This apparatus, which was ordered on 24 February 1988, 
is intended for gathering data needed for determining 
the kinetic parameters of various processes. 
By virtue of its Decision of 6 June 1990 the Commission 
has decided that this apparatus may not be imported free 
of import duties. 
Reasoning: 
— not scientific apparatus.