3.10.91 OfficialJournaloftheEuropeanCommunities NoL276/7
COMMISSION REGULATION (EEC)No2904/91
of27September1991
imposingaprovisionalanti-dumping dutyonimportsofcertainpolyesteryarns
(man-madestaplefibres)originatinginTaiwan,Indonesia,India,thePeople's
RepublicofChinaandTurkeyandterminatingtheanti-dumping proceedingin
respectofimportsoftheseyarnsoriginatingintheRepublicofKorea
productionofthepolyesteryarnsconcerned.The
complaintcontainedevidenceofdumpingofthis
productoriginatinginthecountriesindicatedin
thepreviousparagraphandofmaterialinjury
resultingtherefromwhichwasconsideredsufficient
tojustifyopeningaproceeding.THECOMMISSION OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,
HavingregardtoCouncilRegulation(EEC)No2423/88
of11July1988onprotectionagainstdumpedorsubsi­
dizedimportsfromcountriesnotmembersoftheEuro­
peanEconomicCommunity('),andinparticularArticle
11thereof,
HavinginformedtheEEC-TurkeyAssociationCouncil
pursuanttoArticle47(2)oftheAdditionalProtocolto
theAgreementestablishinganassociationbetweenthe
EuropeanEconomicCommunityandTurkey(2),and
beingawarethatthemeasuresconcerningTurkey
imposedbythisRegulationshouldberepealedifthe
AssociationCouncilissuesarecommendation withinthe
timeperiodprovidedforinthisArticle,
AfterconsultationswithintheAdvisoryCommitteeas
providedforundertheaboveRegulation,(2)TheCommissionofficiallyadvisedtheexporters
andimportersknowntobeconcerned,therepre­
sentativesoftheexportingcountriesandthe
complainants andgavethepartiesdirectly
concernedtheopportunitytomaketheirviews
knowninwritingandtorequestahearing.
Representatives oftheexporters,someimporters,a
largenumberofCommunityproducersandthe
complainantmadetheirviewsknowninwriting.
Representatives oftheTurkish,theIndian,the
IndonesianandtheKoreanexportersandone
importerrequestedandweregrantedahearing.
Whereas:(3)InviewoftheextremelylargenumberofCommu­
nityproducersmentionedinthecomplaint,the
Commissionwouldhavebeenunableadequatelyto
verifytheinformationreceivedfromallofthemas
thiswouldhaveresultedinanextremelylongdelay
incompletingtheinvestigationwhichwouldhave
beenincompatiblewiththeverypurposeofanti­
dumpingproceedings .ForthisreasontheCommis­
siondecidedtomakearepresentative selectionof
firmsonthebasisoftheirsizeandgeographicsitu­
ation.Acertainnumberoffirmsoflarge,medium
andsmallsizelocatedin10MemberStateswere
chosenforquestionnaires tobesent.Theproducers
fromwhichacceptablereplieswerereceivedwere
foundtoberepresentative oftheCommunity
industrywithinthemeaningofArticle4(5)of
Regulation (EEC)No2423/88.A.PROCEDURE
(1)InMarch1990theCommissionannounced,bya
noticepublishedintheOfficialJournalofthe
EuropeanCommunities (3),theinitiationofan
anti-dumping proceedingconcerningimportsinto
theCommunityofcertainyarnsofstaplepolyester
fibres(hereafterreferredtoas'polyesteryarns')
originatingintheRepublicofKorea,Taiwan,Indo­
nesia,India,thePeople'sRepublicofChinaand
Turkeyandcommencedaninvestigation .The
productinvestigated fallswithinCNcodes
55081011,55092110,55092190,55092210,
55092290,55095100and55095300.
Theproceedingwasinitiatedasaresultofa
complaintlodgedbytheCommitteeoftheCotton
andAlliedTextileIndustriesoftheEEC(Euro­
coton)onbehalfofproducerswhosecollective
outputconstitutedsubstantially allCommunity(4)Thisconclusiondoesnotapplytosewingthread
yarnsdescribedinrecital(10)forwhichthe
combinedproductionoftheCommunityproducers
whichrepliedtothequestionnaire isnotconsi­
deredtoberepresentative oftheCommunity
industryofthisproduct.Indeed,ofallfirms
reportedbythecomplainanttobefinishersof
sewingthreadthosesupportingthecomplaint
whichsuppliedtheinformationdeemedtobe
necessaryfortheinvestigationonlyrepresenteda
minimalshareofthetotalCommunityoutputof(')OJNoL209,2.8.1988,p.1.
(2)OJNoL293,29.12.1972,p.4.0OJNoC80,30.3.1990,p.6.

NoL276/8 OfficialJournaloftheEuropeanCommunities 3.10.91
sewingthreadin1989onthebasisoftheinforma­
tionsubmittedbytheFederationinternationale de
lafilterie.—JEsponaSA,Barcelona,
—GrupoMITASA,Barcelona,
—ManufacturasAntonioGassolSA,Barcelona;
Italy:
—BossiSpA,Cameri,TheCommissionconcludesthereforethat,while
forCommunityproducersofyarnsotherthan
sewingthreadtheprovisionsofArticle4(5)of
Regulation(EEC)No2423/88aremet,thatisnot
thecaseasfarasCommunityproducersofsewing
threadareconcerned .—FilaturaGiovanniGrazianiSRL,Busto
Arsizio,
—ManifatturadelCirceoSpA,Milano,
—ManifatturaMaffeis,IndustriaFilatiSpA,
Gazzaniga,
—FilaturadellaValtrompiaSpA,S.Vittore
Olona,
—LinificioeCanapificioNazionaleSpA,(Divi­
sioneCotonificiodiConegliano),Vimercate;(5)InIndia,thelargenumberofexportersprevented
theCommissionfromcarryingoutverificationsat
thepremisesofallofthem.Becauseofthisthe
Commission ,inordertoachievethemostequi­
tablemethodofcompletingtheinvestigation
withinareasonableperiod,proceededasfollows:
Portugal:
—CoelimaIndústriasTêxteisSA,Pevidem;
UnitedKingdom:
—-CourtauldsTextilespic,(CourtauldsSpin­
ning),Oldham,
—CVWovenFabricsLtd(IndiaMills),
Darwen,Lancashire ;
France:TheCommissionforwardedquestionnaires toall
Indianexportersknown(43firms).Mostofthese
exportersrepliedtothequestionnaire andno
requestsforquestionnaires werereceivedfrom
otherfirms.TheCommissionselected,onthebasis
ofcriteriasuchastheirproductionandsalesboth
inIndiaandintheCommunity,sevenfirmsof
small,mediumandlargesize.TheCommission
informedtheSyntheticandRayonTextilesExport
PromotionCouncil(SRTEPC)whichrepresents
virtuallyalltheexportersoftheproductconcerned
inIndia,ofthecriteriausedforchoosingthe
selectedcompaniesandofitsintentiontoapply
theweightedaveragefindingsestablishedforthese
sevencompaniestotherestofthecooperating
exporters.Noobjectionswereraisedbythe
SRTEPCtotheproposedmethodology .—P&JLeurentSA,Tourcoing,
—LaCotonnièred'Armentières SA,Armenti­
ères,
—LaCotonnièreduTouquetSA,Armentières ;
Belgium:
—NVUtexbel,Renaix;
(b)Exporters:
India:
—BanswaraSyntexLtd,Bombay,(6)TheCommissionsoughtandverifiedallinforma­
tionitdeemedtobenecessaryforthepurposesofa
preliminarydetermination andcarriedoutinvesti­
gationsatthepremisesofthefollowingfirms:
—TheCoimbatorePioneerMillsLtd,Peela­
medu,Coimbatore , (a)Communityproducers:
Germany:
—NeueBaumwoll-Spinnerei undWebereiHof
AG,Hof,
—Vogtländische BaumwollSpinnereiAG,Hof,
—SchoellerTextilGmbH&Co.Kg,Düren;—ModernSyntexLtd,Bombay,
—RajasthanSpinning&WeavingMillsLtd,
Gulapura,
—RelianceChemotexIndustriesLtd,Bombay,
—TheShreeMeenakshiMillsLtd,Madurai,
—ShreeSatyamSp.,andWvgMillsLtd,Secun­
derabad;
Indonesia :
—PTKewalramIndonesia,Bandung;
RepublicofKorea:
—ChoongnamSpinningCo.Ltd,Seoul,
—TaekwangIndustrialCo.Ltd,Seoul;Spain:
—CAHilaturasdeFabrayCoats,Barcelona,
—EstabanellyPahisaSA,Barcelona,
—HilaturasGossypiumSA,Barcelona,
—HilaturasMABSA,Barcelona,

3.10.91 OfficialJournaloftheEuropeanCommunities NoL276/9
B.PRODUCTUNDERCONSIDERATION ,LIKE
PRODUCTTaiwan:
—ChungShingTextileCompanyLtd,Taipei;
Turkey:
—BisasBursaIplikSanayiiA§,Bursa,
—CeytasCeyhanTekstilSanayiiAS,Ceyhan,
Adana,
—SoktasPamukveTarimÜrünleriniDeger
PendirmeTicaretveSanayiiAS,Söke.
(c)ImportersintheCommunity:
France:
—SartelTootalSA,Wattrelos,
—CousinFrèresSA,Wervicq-sud ;
Belgium:
—ChemitexSA,Brussels;
UnitedKingdom:
—BroomeandWellington,Manchester,
—EnglishSewingLtd,Poynton/Cheshire.
(7)ThefollowingproducersinIndiarespondedtothe
questionnairesentbytheCommissionandagreed
tocooperateintheinvestigationbutwerenot
visitedforthereasonsoutlinedinrecital(5):
—DeepakSpinnersLtd,Baddi,Solan,
—GokakPatelVolkartLtd,GokakMillsDivision,
Bombay,(i)Definitionofproduct
(10)Theproductscoveredbythecomplaintandfor
whichtheproceedingwasopenedarethefol­
lowing:
—sewingthreadofpolyesterstaplefibres,notput
upforretailsale(CNcode55081011),
—singleandmultiple(folded)yarncontaining
85%ormorebyweightofpolyesterstaple
fibres,notputupforretailsale(CNcodes
55092110,55092190,55092210and
55092290),
—otheryarnofpolyesterstaplefibresmixed
mainlyorsolelyeitherwithartificialstaple
fibresorwithcotton(CNcodes55095100and
55095300).
Withtheexceptionofsewingthreadallotheryarns
coveredbytheproceedingcanbebasicallydivided
intothreecategories:polyesteryarnsofstaple
fibres,polyesteryarnsofstaplefibresmixedwith
viscoseandpolyesteryarnsofstaplefibresmixed
withcotton.Withineachcategoryyarnsaredivided
intodifferentcountnumbersdependingontheir
thicknessandonwhethertheyaresingleor
multiple.ForthepurposeofthisRegulationeach
oneoftheseiscalleda'producttype'.
Theseyarnshaveverysimilarphysicalcharacteris­
tics,aremanufacturedusingthesamebasictechno­
logyandonthesametypeofequipmentandare
marketedunderasimilarcommercialpolicy.They
have,forthesameproducttypes,similarcostsof
productionandsellingpricesperunitandahigh
degreeofinterchangeability intheiruses.
Thesewingthreadofpolyesterstaplefibresfalling
withinCNcode55081011has,however,distinct
technicalcharacteristics andenduses.Inaddition
tothemanufacturing processescommontoall
yarns,i.e.spinningandincertaincasestwisting,
theproductionofsewingthreadrequiresatleast
threeothermanufacturing processes,i.e.dyeing,
lubricatingandwindingwhichresultindifferent
physicalcharacteristics ofthefinishedproduct.The
endusesareclearlydifferent;sewingthreadisused
forsewingwhereastheotheryarnsareprimarily
usedforweavingorknitting.
Forallthesereasons,theCommission hascometo
theconclusionthat,forthepurposeofthepresent
proceeding,polyesteryarnsofstaplefibres,poly­
esteryarnsofstaplefibresmixedwithviscoseand
polyesteryarnsofstaplefibresmixedwithcotton
canbeconsideredasoneproduct,whereassewing
threadfallingwithinCNcode55081011should
beconsideredasadistinctproduct.—HimachalFibresLtd,NewDelhi,
—HindSyntexLtd,Dewas,
—IndoRamaSynthetics(India)Ltd,NewDelhi,
—LoyalTextileMillsLtd,Kovilpatti,
—OrientSyntexLtd,Bombay,
—PrecotMillsLtd,Coimbatore ,
—RajasthanTextileMills(prop.SutlejCotton
MillsLtd),Bhawanimandi ,
—SholingurTextilesLtd,Dindigul,
—SoundarajaMillsLtd,Dindigul,
—TheMadhavnagarCottonMillsLtd,Madhav­
nagar,
—VardhmanSpinning&GeneralMillsLtd,
Ludhiana,
—YarnSyndicateLtd,Calcutta.
(8)Theinvestigationofdumpingcoveredtheperiod
from1January1989to31December1989(the
investigationperiod).
(9)Thisinvestigationhasexceededthenormaltime
periodofoneyearbecauseofthevolumeand
complexityofthedatainitiallygatheredand
examined,andbecausetheinvestigation has
requiredthestudyofrelatedissueswhicharose
duringtheproceedingandwhichcouldnot'have
beenforeseenatitsoutset.

NoL276/10 OfficialJournaloftheEuropeanCommunities 3.10.91
Whereaparticularproducttypeexportedtothe
Communitywasnotsoldonthedomesticmarket
orwheresuchsalesweremadeininsufficient
quantities,giventhedifficultiesinmakinga
reasonableestimateofthevalueofthedifferences
betweenproducttypes,normalvaluewas
constructedonthebasisofthecostsofproduction
plusareasonableprofitmargin.Theselling,
generalandadministrative expensesincludedin
thecostofproductionandtheprofitmarginswere
calculatedbyreferencetotheexpensesincurred
andtheprofitsrealizedbytheexporterconcerned
onsalesofothertypesofthelikeproductonthe
domesticmarket.(11)ACommunityimporterandfinisherofsewing
threadallegedthattheso-calledunfinishedsewing
threador'greyyarn',whichisa100%polyester
yarnusedtoproducefinishedsewingthread,
shouldbeconsideredasadistinctproductand
should,eitherbeexcludedfromthescopeofthe
proceeding,orbeconsideredseparatelyforall
purposesoftheproceeding .Insupportofitsargu­
mentthisimporterarguedthatthese'greyyarns'
haddifferenttechnicalcharacteristics ,economicsof
productionandenduses.
TheCommission cametotheconclusionthatthe
allegeddifferencesintechnicalcharacteristics were
notexclusivetothese'greyyarns'butwere
commontomanyotheryarnsusedforweavingand
knittingpurposesandthattheargumentsput
forwardconcerningeconomicsofproductionand
endusescouldnotjustifyadistincttreatmentfora
productwhichcouldnotbedifferentiatedinits
physicalcharacteristics .(b)Taiwan
(15)NormalvalueforthecooperatingTaiwanese
exporterwasestablishedonthebasisofthe
comparablepriceactuallypaidorpayableinthe
ordinarycourseoftradeforthe-likeproductin
Taiwan.
Wheresubstantialquantitiesofdomesticsalesofa
particularproducttypeweresoldataloss,normal
valuewasestablishedonthebasisoftheprices
actuallypaidorpayablefortheremainingprofi­
tablesalesofthisproducttypeinaccordancewith
Article2(4)ofRegulation(EEC)No2423/88.(ii)Likeproduct
(12)Theresultsoftheinvestigationcarriedoutbythe
Commissionhaveshownthattheyarnsmanufac­
turedintheexportingcountriesconcernedbythis
proceedingusethesamebasictechnologyasthose
producedintheCommunityandarealikeintheir
essentialphysicalandtechnicalcharacteristics and
intheirenduses.
TheCommissionalsofoundthattheyarnssoldby
theexportingcountriesintheirdomesticmarkets
arealike,withinthemeaningofRegulation(EEC)
No2423/88,totheyarnsexportedtotheCommu­
nity.
C.DUMPING(c)Indonesia
(16)NormalvalueforthecooperatingIndonesian
exporterwasestablishedonthebasisofthe
comparablepriceactuallypaidorpayableinthe
ordinarycourseoftradeforthelikeproductin
Indonesia .
Whereaparticularproducttypeexportedtothe
Communitywasnotsoldonthedomesticmarket
ordomesticsaleswereininsufficientquantitiesor
madeataloss,giventhedifficultiesinmakinga
reasonableestimateofthevalueofdifferences
betweenproducttypes,normalvaluewas
constructedonthebasisofthecostofproduction
plusareasonableprofitmargin.Theselling,
generalandadministrative expensesincludedin
thecostofproductionandtheprofitmarginswere
calculatedbyreferencetotheexpensesincurred
andtheprofitsrealizedbytheexporterconcerned
onsalesofothertypesofthelikeproductonthe
domesticmarket.(i)Normalvalue
(13)Forallexportingcountries,normalvalueswere
preliminarilyestablishedbythemethodsprovided
forbyArticle2,(3),(4)and(5)ofRegulation(EEC)
No2423/88,foreachindividualproducttype
exportedtotheCommunity .
(a)RepublicofKorea
(14)NormalvalueforthecooperatingKoreanexporters
wasestablishedonthebasisofthecomparable
priceactuallypaidorpayableintheordinary
courseoftradeforthelikeproductintheRepublic
ofKorea.(d)India
(17)NormalvalueforthecooperatingIndianexporters
wasestablishedonthebasisofthecomparable
priceactuallypaidorpayableintheordinary
courseoftradeforthelikeproductinIndia.

3.10.91 OfficialJournaloftheEuropeanCommunities NoL276/11
Whereaparticularproducttypeexportedtothe
Communitywasnotsoldonthedomesticmarket
orwheresuchsaleswereininsufficientquantities
orweremadeataloss,giventhedifficultiesin
makingareasonableestimateofthevalueofthe
differencesbetweenproducttypes,normalvalue
wasconstructedonthebasisofthecostofproduc­
tionplusareasonableprofitmargin.Theselling,
generalandadministrative expensesincludedin
thecostofproductionandtheprofitmarginswere
calculatedbyreferencetotheexpensesincurred
andtheprofitsrealizedbytheexporterconcerned
onsalesofothertypesofthelikeproductonthe
domesticmarket.
Inacertainnumberofcasesitwasnotpossibleto
followthisapproachonestablishingtheprofit
marginaseithernosalesofothertypesofthelike
productweremadebytheparticularexporters
concernedortheyweremadeatalossorwith
profitmarginsnotsuitableforuse.Inthosecases
theprofitmarginusedwastheweightedaverage
profitrealizedbyotherexportersinIndiaonprofi­
tablesalesofothertypesofthelikeproductonthe
domesticmarket.cooperatingexportersgiventhat,inthesecases,
dataonamonthlybasiswasnotavailable.
Asthenumberofsalesmadebyallthreeexporters
inthedomesticmarketoftheproducttypes
exportedtotheCommunitywasinsignificant ,
normalvaluewasconstructedonthebasisofthe
costofproductionplusareasonableprofitmargin.
Thisprofitmarginandtheselling,administrative
andgeneralexpensesincludedinthecostof
productionwereestablished,fortwoexporters,by
referencetotheprofitrealizedandtotheexpenses
incurredintheirspinningandweavingactivities.
Thiswasconsideredtobethemostreasonable
solutioninviewofthefactthatneithertheselling,
generalandadministrative expensesnortheprofit
couldbedeterminedbyreferencetothedomestic
salesofthelikeproductandthatinsuchcircum­
stancesthesecostsandprofitare,accordingto
Article2(3)(b)(ii)ofRegulation(EEC)No
2423/88,tobecalculatedbyreferencetothesales
madebytheexporterinthesamebusinesssector
which,inthepresentcase,isspinningandweaving.
ForthethirdTurkishexporter,asitsspinningand
weavingactivitiesdidnotshowanyprofitduring
theinvestigationperiod,theweightedaverage
profitmarginoftheothertwoexporters,asdeter­
minedabove,wasused.(e)People'sRepublicofChina
(18)SincethePeople'sRepublicofChinaisanon­
marketeconomycountrywithinthemeaningof
Article2(5)ofRegulation(EEC)2423/88,normal
valuewasbasedoninformation obtainedina
marketeconomythirdcountry.Tothateffect,the
complainant'ssuggestionthatnormalvaluebe
determinedonthebasisoftheconstructedvalueof
thelikeproductmanufacturedinIndiahasbeen
retainedintheabsenceofdomesticsalesinIndia
oftheproducttypesexportedfromthePeople's
RepublicofChina.Indiaisconsideredtobethe
mostappropriateandreasonablechoiceofmarket
economythirdcountryamongthesesubjecttothe
proceedingasfarassimilaritiesinproductiontech­
niquesandlevelofdevelopmentareconcerned.
Foroneoftheproducersconcerned,theproduct
wasnotexporteddirectlyfromChinatothe
CommunitybutviaHongKong.Normalvaluefor
theseexports,however,wasnotestablishedonthe
basisofpricesinHongKongastheproductin
questionwasmerelytranshippedthroughthat
country.(a)Exportprice
(20)Exportpricesweredeterminedforthepurposeof
thepreliminaryfindingsonthebasisoftheprices
actuallypaidorpayablefortheproductssoldfor
exporttotheCommunity .
(21)Oneoftheexportersconcernedcarriedoutsomeof
itssalestotheCommunitythroughabranchesta­
blishedintheCommunity .Exportpricesinrespect
ofthesesaleswereconstructedonthebasisofthe
priceatwhichtheimportedproductwasfirst
resoldtoanindependentbuyerintheCommunity .
Thesepriceswereadjustedinordertotakeaccount
ofallcostsincurredbetweenimportationandresale
includingcustomsdutiesandareasonableprofit
marginwhichwasestablishedonthebasisofthe
profitmarginsnormallymadebyindependent
importersoftheproductinquestion.
(22)OneoftheChineseexportersinvolvedmadeallof
itssalestotheCommunitythroughacompanyin
HongKong.ThecompanyinHongKongand
someofthepurchasersintheCommunitywere
financiallylinkedtotheChineseexporterandare,
forthepurposesofthisproceeding,consideredto
berelated.However,giventhefactthattherewere
noresalesoftheproductinthesameconditionas
ithadbeenimportedandthatthepricesofthe(f)Turkey
(19)InviewofthehighlevelofinflationinTurkey
duringtheinvestigationperiod,normalvalueswere
establishedonamonthlybasisforonecooperating
exporterandonaquarterlybasisfortheothertwo

3.10.91 NoL276/12 OfficialJournaloftheEuropeanCommunities
goodssoldforexporttotheserelatedimporters
wereequivalenttothosetoindependentimporters
itwasconcludedthattherewasnoneedtoresortto
thereconstruction oftheexportprice,asthesesales
couldbeconsideredtohavebeenmadeintheordi­
narycourseoftrade.Turkey,fromalltheexportersinvolved,themargin
ofdumpingbeingequaltotheamountbywhich
thenormalvalue,asestablished,exceedstheprice
forexporttotheCommunity .
(27)AsfarastheexportersfromthePeople'sRepublic
ofChinaotherthanGuangyingSpinningCo.,Ltd
areconcernedandinaccordancewithprevious
CommunitypracticetheCommissionconsidered
that,becauseofthelackofindependence ofthese
exportersinsettingtheirexportprices,asingle
dumpingmarginshouldbedetermined .Todo
otherwisewouldfavourcircumvention asexportsto
theCommunitycould,inthefuture,bechannelled
throughthecompanywiththelowestdumping
margin.
InthecaseofGuangyingSpinningCo.,Ltd,
however,evidencewassubmittedestablishingthe
factthatthiscompanyisajointventureformedby
ChineseandHongKongpartners,thelatterbeing
relatedtoaCommunitygroup,isfreetoestablish
itsexportpricesandcantransferprofitsobtainedto
itsforeignshareholderssubjecttocertainadminis­
trativerequirements .ThisledtheCommissionto
concludethatanindividualdumpingmargincould
bedeterminedforthiscompanybycomparingits
actualexportpriceswiththerelevantnormalvalue
establishedforthePeople'sRepublicofChinain
accordancewithrecital(18).
(28)Theweightedaveragemarginsofdumpingforeach
exporter,expressedasapercentageofcifCommu­
nityfrontierpricesareasfollows:
(a)RepublicofKorea
ChoongnanSpinningCo.,Ltd,
Seoul: 15,88%
TaekwangIndustrialCo.,Ltd,Seoul:3,68%;
(b)Taiwan
ChungShingTextileCompanyLtd,
Taipei:' 2,24%;
(c)Indonesia
P.T.KewalramIndonesia,Bandung:0,26%;
(d)India
BanswaraSyntexLtd,Bombay:6,04%(iii)Comparison
(23)Thenormalvaluebyproducttypewascompared
withtheexportpriceforthecorrespondingtypeon
atransaction-by-transaction basisatanex-works
levelandforthesameleveloftrade.Asfarasdiffe­
rencesinconditionsandtermsofsaleare
concerned,allowanceswerelimitedtothose
claimedwhichboreadirectrelationshiptothe
salesunderconsiderationandforwhichsatisfactory
evidencewassubmitted .
(24)Cooperating Korean,Indonesian exporters
requestedanallowancewithregardtoimport
chargesonrawmaterialsphysicallyincorporatedin
thelikeproductwhendestinedforconsumptionin
thecountryoforiginandrefundedornotcollected
inrespectoftheproductexportedtotheCommu­
nity.Theseallowancesweregrantedtotheextent
thatsatisfactoryjustificationwasprovided.
(25)SeveralIndianexportersclaimedanallowancein
respectofpriorstagedutiesandindirecttaxeson
inputstothelikeproductdestinedforconsump­
tioninIndiawhichwererefundedbytheIndian
Governmentunderthecashcompensatorysupport
system,inrespectoftheproductexportedtothe
Community .Followingtheexaminationofthe
evidenceprovidedbytheclaimantexporters,the
amountactuallyrefunded(8%ofthefobvalueof
theexportedgoods)wasfoundtocorrespondtothe
dutiesandindirecttaxeseffectivelyborne.The
claimhas,therefore,beenfullyallowedpursuantto
Article2(10)(b)ofRegulation(EEC)No2423/88.
Moreover,theCommission hasbeenofficially
informedbytheIndianauthoritiesoftheabolition
ofthecashcompensatory supportsystemwith
effectfrom3July1991and,therefore,itisreaso­
nabletoexpectthatexportpriceswillincrease
accordingly.
(IV)DumpingmarginsTheCoimbatorePioneerMillsLtd,
Coimbatore : 3,34%
ModernSyntexLtd,Bombay:3,32%
RajasthanSpinning&WeavingMills
Ltd,Gulapura: 2,00%
RelianceChemotexIndustriesLtd,
Bombay: 2,16%
TheShreeMeenakshiMillsLtd,
Madurai: 11,82%
ShreeSatyamSpinning&Weaving
MillsLtd,Secunderabad : 9,84%.(a)Cooperatingexporters
(26)Normalvaluesandexportpriceswerecomparedon
atransaction-by-transaction basisforeachofthe
exportersconcerned.Thepreliminaryexamination
ofthefactsshowstheexistenceofdumpingin
respectofimportsoftheproductconcernedorigi­
natingintheRepublicofKorea,Taiwan,Indo­
nesia,India,thePeople'sRepublicofChinaand

3.10.91 OfficialJournaloftheEuropeanCommunities NoL276/13
Theweightedaverageofthedumpingmargins
foundforthesampledexportersaboveamountsto
3,76%.Thispercentageisconsideredasthe
dumpingmargintobeattributedtothecoopera­
tingexportersinIndianotinvestigated :
(e)People'sRepublicofChina
ChinatexNon-Cotton Yarns&
FabricsImportandExportCo.,
Beijing: 29,69%,
GuangyingSpinningCo.,Ltd,
Guangzhou : 0,42%;
(f)Turkeythemostreasonableassumptionwasthatthe
dumpingmarginswereequaltothehighest
dumpingmarginfoundforacooperatingexporter
inthesamecountry.
Astocountrieswithalowcoverageofexports,i.e.
Taiwan,IndonesiaandTurkeyitwasconsidered
thattheinformationobtainedfromcooperating
exporterscouldnotbeheldtoberepresentative
andotheravailableinformation,inparticularthat
containedinthecomplaintforthedetermination
ofnormalvalueandinEurostatstatisticswith
regardtoexportprices,wasused.
Onthebasisoftheabove,thefollowingdumping
margins,expressedasapercentageofcifCommu­
nityfrontierprices,havebeendetermined : BlsasBursaIplikSanayiiAS,Bursa:10,14%,
CeytasCeyhanTekstilSanayii
AS,Ceyhan,Adana: 2,66%,
SoktasPamukveTarimÜrünlerini
DegerPendirmeTicaretveSanayii—RepublicofKorea: 15,8%,
—Taiwan: 24,5%,
—Indonesia : 21,1%,
—India: 11,8%,
—People'sRepublicofChina:29,6%,
—Turkey: 52,1%.AS,Söke: 4,13%.
(29)ThedumpingmarginsfoundforGuangyingSpin­
ningCo.,Ltd,GuangzhouandP.T.Kewalram
Indonesia,Bandungcanberegardedasdeminimis
andconsequently ,forthepurposesofthisprocee­
ding,importsfromthesetwocompaniesareconsi­
deredasnottohavebeendumped.D.INJURY
(i)Cumulationoftheeffectsofthedumped
imports
(33)Inestablishingtheimpactofthedumpedimports
ontheCommunityindustry,theCommissionhas
consideredtheeffectofalldumpedimportsfrom
thecountriesconcernedinthepresentinvestiga­
tion.Inanalysingwhethercumulationofthese
importswasappropriate,theCommission
examinedwhethertheimportsatdumpedprices
contributedtothematerialinjurysufferedbythe
Communityproducers.Forthatpurpose,the
Commissionhasconsideredthecomparability of
theproductsimportedfromallthecountries
concernedintermsofphysicalcharacteristics and
interchangeability ofenduses.Ithasalsoexamined
thevolumesimported,thelevelofpricesofthese
importsandtheextenttowhichimportsfromeach
countrycompetedintheCommunitywitheach
otherandwiththelikeproductoftheCommunity
industry.Afterexaminationofthesefactsthe
Commissionfoundthatwiththeexceptionofthe
RepublicofKorea(seerecital(34))andforthe
purposeofestablishingthelevelofinjurysustained
bytheCommunityindustry,regardshouldbepaid
tothecumulatedeffectofthedumpedimports
fromallexportingcountriesconcerned.
(34)Itwasconsideredthat,giventhesmalland
distinctlylowermarketshareheldsincetheendof
1987bytheRepublicofKoreacomparedtothe
otherfivecountriesconcerned,therewereinsuffi­
cientgroundstocumulatetheimportsfromthat
countrywiththoseoftheremainingfiveexporting(b)Non-cooperating exporters
(30)Inaddressingtheissueofestablishingthedumping
marginfortheexporterswhichneitherrepliedto
theCommission'squestionnairewithintheesta­
blishedtimelimitnorotherwisemadethemselves
known,theCommissionnotedthattheproportion
ofimportsintotheCommunity,asrecordedin
Eurostatstatistics,coveredbytheexportsreported
bythecooperatingexportersvariedaccordingto
thecountriesconcerned.ThusfortheRepublicof
Korea,IndiaandthePeople'sRepublicofChina
thereportedexportscoveredalmostthetotalityof
importsintotheCommunity asrecordedin
Eurostat.Bycontrast,forTaiwan,Indonesiaand
Turkeythisproportionshowedalargedegreeof
non-cooperation .
(31)Inthesecircumstances ,itwasconcludedthat,in
applyingArticle7(7)(b)ofRegulation(EEC)No
2423/88,twodifferentapproacheswererequiredfor
theestablishment ofdumpingmarginsfornon-
cooperatingexportersinorderthatcooperating
exporterswouldnotbediscriminatedagainstand,
atthesametime,thatmeasurestobetakenwould
constituteaneffectiveprotectionfortheCommu­
nityindustry.
(32)Forcountrieswithahighcoverageofexports,
namelytheRepublicofKorea,Indiaandthe
People'sRepublicofChinaitwasconsideredthat

3.10.91 NoL276/14 OfficialJournaloftheEuropeanCommunities
(iv)SituationoftheCommunityindustry countriesforwhich,thesimilarandsimultaneous
effectontheCommunityindustrymustbeassessed
jointly.
(a)Productionandcapacityutilization
(ii)Volumeandmarketshareofdumped
imports
(35)ThevolumeofdumpedimportsintotheCommu­
nityoftheproductconcernedoriginatinginthe
exportingcountrieswhicharethesubjectofthe
proceeding,otherthantheRepublicofKorea,
increasedfrom7877tonnesin1986to17672
tonnesduringtheinvestigationperiod(January
1989toDecember1989).ImportsfromtheRepu­
blicofKoreainthesameperiodincreasedfrom
713tonnesto976tonnes.
(36)Thedevelopmentofimports,assessedinthelight
oftheapparentCommunityconsumptionoverthe
sameperiodledtoacombinedmarketshareofthe
Communitymarketheldbytheexportingcoun­
triesconcerned,otherthantheRepublicofKorea,
takentogether,whichincreasedfrom3,7%in
1986to9,5%duringtheinvestigationperiod.The
marketshareheldbytheRepublicofKoreainthe
sameperiodincreasedfrom0,3%.to0,5%.(38)Thevolumeofproductionoftheproduct
concernedbytheCommunityproducersinvesti­
gatedremainedgenerallystableonanannualbasis
duringtheperiodfrom1986to1989.
Regardingcapacityutilization,itshouldbenoted
thattheproductconcernedisgenerallymanufac­
turedonequipmentwhichisalsousedforthe
manufactureofotherproducts(e.g.cottonand
viscoseyarns).Becauseofthis,itisnotpossiblein
allcasestodeterminecapacityutilizationrates
whicharespecificforthatproduct.Inspiteofthese
difficulties,capacityutilizationinrespectofthe
productconcernedhasbeenestimatedtohave
remainedstablefortheinvestigatedproducers,on
averagesince1986,at75%.
(39)Theabovedescriptionreflectsthesituationofthe
Communityproducersinvestigated.Theoverall
situationoftheCommunityindustrypresentsmore
negativeaspects.Thus,thetotalvolumeofproduc­
tionintheCommunity ,asestimatedbythe
complainant,hasdecreasedfrom202700tonnesin
1986to157150tonnesduringtheinvestigation
period.Thisdeclineinproductionappearstobein
linewiththefactthatahighnumberofproduction
unitswerecloseddownintheCommunity,(see
.recital(43).
(b)Sales,stocksandmarketshare
(40)Thevolumeofsalesoftheproductconcernedby
theCommunityindustrywasinlinewiththatof
productionsince1986.Asaresult,theyear-end
stocklevelsshowednorealtrend.Thisdevelop­
mentinsalesvolumecomparedtothatofthe
apparentCommunityconsumption ledtoa
decreaseinmarketsharefrom90,4%in1986to
79,0%duringtheinvestigationperiod.(iii)Pricesofdumpedimports
(37)Pricesoftheimportedproductfromthesixcoun­
triesconcernedwere,duringtheinvestigation
period,significantlybelowthepricespractisedby
theCommunityproducers.Priceundercuttingwas
establishedforeachoftheexportersinvestigatedby
comparing,atthesameleveloftrade,pricesofthe
exporterconcernedforsalestothefirstindepen­
dentcustomerintheCommunitywithweighted
averagepricesoftheCommunityproducers.
Thiscomparisonwasmadeonaperproducttype
basisforeachofthetypesimportedwhichwere
consideredforthedumpingdetermination .Incases
whereaparticularproducttypeimportedhadnot
beensoldduringtheinvestigationperiodbyanyof
theCommunityproducers,thepriceofthenearest
resemblingtype,dulyadjusted,wasused.
Adjustmentswerealsomadetoensurecompara­
bilityintermsoftransportcostsdeductedfromthe
Communitysellingpricesaswellasintermsof
customsdutyandimporters'profitmarginaddedto
theimportprices,totheextentitwasapplicable.
Theresultsofthecomparisonshowedmarginsof
undercuttingforallcountriesconcernedandfor
almostalltheexportersinvestigated .Theweighted
averageundercutting ,expressedatafree-at­
Community-frontier level,rangedupto56,48%.(c)Prices
(41)Becauseofthecontinueddownwardpressureon
pricesresultingfromthedumpedimports,
Communityproducerswereobliged,ingeneral,to
maintaintheirpriceswhentheupwarddevelop­
mentofcostsofproductionwouldnormallyhave
ledtoincreasingthem.Inmanycases,sincethe
endof1988theywere,inordertomaintaintheir
capacityutilizationandmarketshare,evenforced
toreducetheirpricestolevelswhich 1inmostcases
didnotcoverthecostsofproductionandwhich,in
anycase,didnotallowareasonableprofittobe
made.

3.10.91 OfficialJournaloftheEuropeanCommunities NoL276/15
(d)Profitability
(42)Whilein1986and1987profitscouldbekept
stablebyrationalization factorssuchasmoderniza­
tionofequipmentandreductionofthepersonnel
employed,theseremediescouldnolonger
compensatein1988and1989fortheincreasing
penetrationoftheCommunitymarketbythelow
pricedimportsconcerned.Thus,theCommunity
producersinvestigatedshowedreturnsonsalesof
morethan4,6%onaveragein1986and1987but
incurredlossesin1988and1989amounting,on
average,to1,3%and5,9%intherespectiveyears.maintaincapacityutilizationashighaspossiblein
anattempttoavoidgreaterdeteriorationofprofita­
bilitywhichotherwisewouldhaveoccurred.Asa
result,economicindicatorssuchasproduction,
sales,stocksandmarketsharedidnotshow,for
theseproducers,thenegativetrendsexperiencedby
theCommunityindustryasawhole.Theseindica­
torsdonotclearlyreflect,inallcases,thedifficult
marketconditionsinwhichtheCommunity
industryhashadtooperate.Injurymust,inthese
circumstances ,beassessedmainly,onthebasisof
otherparameterssuchasprices,profitabilityand
employment .
Thepriceerosion,thedeteriorationofthefinancial
situationwithinsufficientprofitabilityoreven
losses,andthereductioninemploymentaffecting
practicallyalltheCommunityproducers,allledthe
Commission toconclude,forthepurposeofits
provisionalfindings,thattheCommunityindustry
hasbeensufferingmaterialinjurywithintheterms
ofArticle4(1)ofRegulation(EEC)No2423/88.(e)Plantclosures
(43)Thegeneraldeteriorationofthefinancialsituation
oftheCommunityindustrysince1988hasledto
drasticdecisionssuchasfurtherrestructuringand
closuresofproductionunitsinordertostopfurther
decay.
From1986to1989,77productionunitsinnine
Communitycountrieswerecloseddowneitherasa
resultofrestructuringorofcessationofactivities. E.CAUSATION OFINJURY
(46)TheCommissionexaminedwhethertheinjury
sufferedbytheCommunityindustry-hadbeen
causedbythedumpedimportsandwhetherother
factorsmighthavecausedorcontributedtothat
injury.(f)Employment
(44)Morethan1000jobshavebeenlostbythe
Communityproducersinvestigatedduring1988
and1989.Thisrepresentsnearlya20%reduction
ofthepersonnelemployedbythemin1987andis
theresultofanongoingrestructuringintendedto
defendprofitabilityandwhichgoesbeyondamere
modernization investmentprogramme .
Withregardtotheemploymentsituationofthe
wholecottontypespinningsectorwhichincludes
thepolyesterspinningindustryintheCommunity ,
thecombinedeffectofrestructuringplansand
closuresoffactoriesisestimatedtohaveledto
morethan10000jobsbeinglostin1988and1989
alone.(i)Effectofdumpedimports
(47)OnitsexaminationtheCommissionfoundthatthe
increaseinvolumeandmarketshareofthe
dumpedimportsfromthesixcountriesinvolvedin
theproceedingcoincidedwiththedeteriorationof
thesituationoftheCommunityindustry.As
explainedbeforeinrecital(41),asaresultofthe
lowpricesatwhichtheimportedyarnsweresold
intheCommunitymarket,theCommunityprodu­
cerswereeitherpreventedfromincreasingtheir
sellingpricesorforcedtoreducetheminorderto
maintaintheirlevelsofcapacityutilizationand
marketshare.Thissuppressionofpriceincreases
andreductioninpricesled,inturn,toageneral
decreaseinprofitabilityandemploymentinthe
Community .Thedevelopmentofnegativeparame­
tersintheseareas,specificallydemonstratedbythe
financiallossesincurredandthejobslostin1988
and1989correspondsintimewiththehighest
penetrationoftheimportsconcerned.However,
giventhenegligibleandsteadymarketshareheld
bytheRepublicofKoreasince1987,theCommis­
sionconsidersthatdumpedimportsfromthis
countryhavenotsignificantlycontributedtothe
injurysufferedbytheCommunityindustry.(v)Conclusion
(45)InassessingthesituationoftheCommunity
industry,accounthastobetakenofthefactthat
themanufactureoftheproductconcernedisa
capitalintensivebusinessinwhichlowcapacity
utilizationbecomesgenerallymorecostlythanto
maintainhighcapacityutilizationandsellallthe
productionatpriceswhichneitherallowan
adequatereturnnorevencoverthefullcostsof
production.
Inviewofthischaracteristic oftheindustry,
Communityproducersinvestigateddecidedto

OfficialJournaloftheEuropeanCommunities 3.10.91 NoL276/16
thantheRepublicofKorea,gainedaCommunity
marketsharewhichincreasedfrom3,7%to9,5%.
Bycontrast,estimatedsalesbytheCommunity
industryintheCommunitymarketdecreased
distinctlyfaster(by23,3%)thanCommunity
consumptionand,consequently ,thecorresponding
marketsharealsodecreasedfrom90,4%to
79,0%.
(52)TheCommissionhasalsoexaminedtheargument
that,becauseoftheexistenceofquantitativerestric­
tionsappliedtotheimportsoftheproductinques­
tionoriginatinginsomeofthecountries
concerned,noinjurycouldbecausedtothe
Communityindustrybytheseimports.The
Commissionconsiders,inthisrespect,thatquanti­
tativerestrictionsprotecttheCommunityindustry
fromexcessivevolumesofimportsbutdonot
necessarilypreventinjuryresultingfromunfair
tradingpracticessuchasdumpingimportsatvery
lowprices.
(53)Consequently ,theCommissionhasconcludedthat,
forpurposesofitsprovisionalfindings,thedumped
importsoriginatinginTaiwan,Indonesia,India,the
People'sRepublicofChinaandTurkeybecauseof
theirpricesandtheirpenetrationintheCommu­
nitymarketandtheresultinglossofprofitability,
marketshareandemployment ,have,takeninisola­
tion,causedmaterialinjurytotheCommunity
industry.(ii)Effectofotherfactors
(48)TheCommissionexaminedwhetherfactorsother
thanthedumpedimportsmighthavecausedor
contributedtotheinjurysufferedbytheCommu­
nityindustry.TheCommission particularly
examinedtheevolutionofCommunityexportsto
thirdcountries,theevolutionandimpactof
importsfromthirdcountriesnotincludedinthis
proceedingandthetrendofconsumptioninthe
Communitymarket.
(49)ExportsbytheCommunityindustrytothirdcoun­
triesonlyrepresentapproximately 6%oftotal
salesandhavenotshownanysignificantchanges
since1986.
(50)Importsfromthirdcountriesnotincludedinthe
proceedinghavebeenincreasingsince1986and
reachedanestimatedshareof10,1%ofthe
Communitymarketduringtheinvestigation
period.Morethanhalfoftheseimportsoriginatein
EgyptandBrazilwhichhavebeensteadilygaining
marketsharesince1986.Someoftheexporters
arguedthatthenon-inclusion ofthesetwocoun­
triesintheproceedingwouldbeparticularlydiscri­
minatory.
TheCommissionhasnotedtjiesubstantialincrease
intheimportsfromEgyptandBrazilaswellasthe
lowleveloftheirpricesastheyappearinthe
Eurostatstatistics.InthislastrespecttheCommis­
sionconsidersthatnoconclusionscanbedrawn
fromthepricesshownintheEurostatstatisticsas
thesemasktheextremelyimportantdifferencesin
pricesamongdifferentproducttypesandnoinfor­
mationisavailableconcerningtheproducttypes
beingexportedfromEgyptandBrazil.
TheCommission hasalsonotedthatnoevidence
concerningtheexistenceofdumpingpracticesby
EgyptandBrazilhasbeenreceived.
Furthermore theCommission considersthatevenif
itwasadmittedthattheimportsfromEgyptand
Brazil,whetherdumpedornondumped,had
causedinjurytotheCommunityindustry,this
wouldnotchangethefactthattheinjurycausedby
thedumpedimportsoriginatinginthecountries
concernedbytheproceedingotherthanthe
RepublicofKoreaismaterial.
(51)Apparentconsumptionoftheproductconcerned
intheCommunitydecreasedduringtheinvestiga­
tionperiodby12,3%whencomparedtothe
consumptionin1986.Thisdeclineinconsumption
explainsonlyinpartthedecreaseinsalesbyall
Communityproducers,butnotthereductionof
theirmarketshare.Thus,inthatperiod,dumped
importsfromallthecountriesconcerned,otherF.COMMUNITY INTEREST
(54)Thepurposeofanti-dumping dutiesis,ingeneral,
tostopdistortionofcompetitionarisingfrom
unfaircommercialpracticesandthustore-establish
openandfaircompetitionontheCommunity
market,whichisfundamentally inthegeneral
Communityinterest.
ThedeteriorationoftheCommunityindustryis
especiallynoticeablefromthedecreaseinprofitabi­
lityandfromthenumberofproductionunits
whichhaveshutdownduringthereferenceperiod.
Thisdeteriorationappearstohavecontinuedin
1990andwould,inalllikelihood,continueinthe
futureifnomeasurestocounteracttheinjurious
dumpingpracticesweretaken.
(55)Someexportershavearguedthatanincreaseinthe
priceoftheimportedyarnsasaresultoftheadop­
tionofanti-dumping measureswouldbedetri­
mentaltotheinterestoftheCommunityweavers.
TheCommission notesthatneitherweaversnor
garmentmakersintheCommunityhaveexpressed
anyobjectionstothepossibleadoptionofprotec­
tivemeasuresinthisproceedingandthat,inany

3.10.91 OfficialJournaloftheEuropeanCommunities NoL276/17
certainprofitmarginfortheimporter,asappli­
cable,werecompared,duringtheinvestigation
period,withtheweightedaveragecostofproduc­
tionoftheCommunityproducersinvestigated,for
thecorresponding producttype,plusa5%profit
margin.case,theincidenceofacertainpriceincreaseon
thecostoftheprocessingindustriesdoesnot
appeartobesignificantenoughtorenderthese
industrieslesscompetitive .
(56)Inconclusion,afterbalancingthevariousinterests
involved,theCommissionconsidersthattheadop­
tionofmeasuresinthepresentcasewill
re-establishfaircompetitionbyeliminatingthe
injuriouseffectsofdumpingpractices.
TheCommission considersthatitisthereforein
theCommunityinteresttoadoptanti-dumping
measuresinordertopreventfurtherinjurybeing
causedbythedumpedimportsconcernedbefore
theendoftheproceeding .Thesemeasuresshould
taketheformofprovisionalanti-dumpingduties.Thesecomparisons showforallexporters
concerned,lowerexportpriceswithmarginswhich,
expressedonaweightedaveragebasisasapercen­
tageofthefree-at-Community-frontier price,
varied,accordingtotheexporterconcerned,
between5,55%and82,72%.
(60)Since,inallcases,themarginsofdumpingfound,
inrespectofeachparticularexporter,werebelow
thecorresponding increasesinexportpricesneces­
sarytoremovetheinjury,ascalculatedabove,
provisionaldutiestobeimposedshouldtherefore
correspondtothedumpingmarginsestablished .
G.DUTY
(61)ForthecooperatingIndianexportersnotselected
forinvestigation ,theCommission ,followingthe
methodologydescribedinrecital(5),appliedthe
weightedaveragedutyoftheinvestigatedexporters.(57)Forthepurposeofestablishingthelevelofthe
provisionaldutytheCommissiontookaccountof
thedumpingmarginsfoundandoftheamountof
dutynecessarytoeliminatetheinjurysustainedby
theCommunityindustry.(62)Forthereasonsgiveninrecital(27),theCommis­
sionhasestablishedasingledutyforallthe
Chineseexporterswiththeexceptionofthejoint
ventureconcernedforwhich,intheabsenceof
dumping(seerecital(29))nodutyisestablished.
(i)Cooperatingexporters
(n)Non-cooperating exporters
(63)Inestablishingthelevelofprovisionaldutyfor
exporterswhichneitherrepliedtothequestion­
nairewithintheestablishedtimelimitnorother­
wisemadethemselvesknown,theCommission
tookaccountofthelevelofexportscoverageof
eachofthecountriesconcernedasdescribedin
recital(30).(58)Sincetheinjuryconsistsmainlyoflackofprofita­
bilityorlosses,theremovalofsuchinjuryrequires
thatindustryshouldbeputinapositioninwhich
itspricescanbeincreasedtoaprofitablelevel.In
ordertoachievethis,exportpricesshouldbe
increasedaccordingly .
Forcalculatingthenecessarypriceincrease,the
Commissionconsideredthatpricesofthedumped
importshadtobecomparedwiththecostof
productionoftheCommunityproducersinvesti­
gatedplusaprofitmarginof5%.Thisprofit
marginisbasedonthelevelofprofitsrealizedon
averagebyCommunityproducerspriortothedete­
riorationoftheirprofitabilityasaresultofthe
dumpedimports.TheCommissionconsidersthat
thisprofitmarginistheminimumrequiredto
ensuretheviabilityoftheCommunityindustry
concerned .
(59)Onthisbasis,theweightedaverageexportprices
foreachproducttype,onafree-at-Community ­
frontierlevelincreasedbycustomsdutiesandaForcountrieswithahighcoverageofexports,the
Commissionconsidereditappropriatetoimposea
dutyatthelevelofthehighestdutydeterminedfor
thecooperating exportersinthecountry
concerned.Indeed,itwouldcreateanopportunity
forcircumvention ofthedutiesandwouldconsti­
tuteabonusfornon-cooperation toholdthatthe
dutiesfornon-cooperating exportersinaparticular
countrywereanylowerthanthehighestduty
determinedinthatcountrywithregardtoany
exporterwhohadcooperatedintheinvestigation .

NoL276/18 OfficialJournaloftheEuropeanCommunities 3.10.91
maymaketheirviewsknownandrequesta
hearing.Furthermore ,itshouldbestatedthatall
findingsmadeforthepurposeofthisRegulation
areprovisionalandmayhavetobereconsideredfor
thepurposeofanydefinitivedutywhichthe
Commissionmaypropose,Withregardtocountrieswithalowcoverageof
exportsforwhichtheinformationobtainedfrom
cooperatingexporterscouldnotbeconsideredto
berepresentative ,otherinformationavailabletothe
Commission wasusedtoestablishboththe
dumpingmargin(seerecital(31))andtheincrease
inexportpricesnecessarytoeliminatetheinjury.
Inparticular,informationcontainedinthe
complaintandinEurostatstatistics,dulyadjusted,
wastakenintoaccount.Sincedumpingmargins
thusestablishedwereinallcasesbelowthecorres­
pondingincreaseinexportprices,dutiesshouldbe
imposedatthelevelofthedumpingdetermined.HASADOPTEDTHISREGULATION :
Article1
H.TERMINATION OFTHEPROCEEDING IN
RESPECT OFIMPORTS OFSEWING
THREAD ORIGINATING INALLTHE
COUNTRIES CONCERNED ASWELLASIN
RESPECTOFIMPORTSOFALLOTHER
YARNSCONCERNED ORIGINATING IN
THEREPUBLIC OFKOREA1.Aprovisionalanti-dumpingdutyisherebyimposed
onimportsofsingleandmultiple(folded)orcabledyarns
containing85%ormorebyweightofpolyesterstaple
fibres,notputupforretailsale,fallingwithinCNcodes
55092110,55092190,55092210and55092290and
otheryarnsofpolyesterstaplefibresmixedmainlyor
solelyeitherwithartificialstaplefibresorwithcbtton,not
putupforretailsale,fallingwithinCNcodes55095100
and55095300andoriginatinginTaiwan,Indonesia,
India,thePeople'sRepublicofChinaandTurkey.
2.Therateofthedutyapplicabletothenetfree-at­
Community-frontier pricebeforeduty,shallbeas
follows:
Rate
of
dutyTartc
additional
code%
24.5
21,1
11,8
29.6
52,1Taiwan
Indonesia
India
People'sRepublicofChina
Turkey8578
8579
8580
8581
8582:(64)InviewofthefactthattheprovisionsofArticle4
(5)ofRegulation(EEC)No2423/88arenotmetas
farastheCommunityproducersofsewingthread
areconcerned,asdescribedinrecital(4)above,the
Commissionconsidersthattheproceedingshould
beterminatedinrespectofimportsofsewing
threadfallingwithinCNcode55081011origina­
tinginallthecountriesconcernedwithoutprotec­
tivemeasuresbeingimposed.
(65)Asreferredtoinrecital(47),importsoftheproduct
concernedoriginatingintheRepublicofKorea
havenotsignificantlycontributedtotheinjury
sufferedbytheCommunityindustry.Inthese
circumstances ,theCommissionconsidersthatthe
•proceedingshouldbeterminatedinrespectof
importsofyarnsotherthansewingthreadorigina­
tinginthiscountrywithoutprotectivemeasures
beingimposed.
(66)Noobjectionstotheseconclusionswereraisedin
theAdvisoryCommittee.
(67)Thecomplainantandthe'FederationInterna­
tionaledelaFilterie'wereinformedofthefacts
andprincipalconsiderations onthebasisofwhich
theCommission intendedtoterminatethe
proceedingwithregardtoimportsofsewingthread
originatinginallthecountriesconcernedaswellas
importsofallotheryarnsconcernedoriginatingin
theRepublicofKoreaanddidnotobjecttothem.withtheexceptionofimportswhicharemanufactured
andsoldforexporttotheCommunitybythefollowing
companies.Thesecompaniesshallbesubjecttotherate
ofdutymentionedhereunder.
Rate
of
duty
o/oTaric
additional
code
Taiwan
ChungShingTextileCompanyLtd,
Taipei
India2,28583
I.FINALPROVISIONRajasthanSpinning&WeavingMills
Ltd,Gulapura 2,0
TheShreeMeenakshiMillsLtd,
Madurai 11,8
DeepakSpinnersLtd,Baddi,Solan3,78584
8585
8586(68)Intheinterestofsoundadministration ,aperiod
shouldbefixedwithinwhichthepartiesconcerned

3.10.91 NoL276/19 OfficialJournaloftheEuropeanCommunities
Rate
of
duty
%Taric
additional
code
GokakPatelVolkartLtd,GokakMills
Division,Bombay
HimachaiFibresLtd,NewDelhi
HindSyntexLtd,Dewas
IndoRamaSynthetics(India)Ltd,
NewDelhi
LoyalTextileMillsLtd,Kovilpatti
OrientSyntexLtd,Bombay
PrecotMillsLtd,Coimbatore
RajasthanTextileMills,(Prop.Sutlej
CottonMillsLtd),Bhawanimandi
SholingurTextilesLtd,Dindigul
SoundarajaMillsLtd,Dindigul
TheMadhavnagarCottonMillsLtd,
Madhavnagar8586
8586
8586
8586
8586
8586
8586
8586
8586
8586
8586
8586
8586
8587
8588
8589
8590
8591
8592VardhmanSpinning&GeneralMills
Ltd,Ludhiana3,7
3,7
3,7
3,7
3,7
3,7
3,7
3,7
3,7
3,7
3,7
3,7
3.7
3,3
9.8
2,1
3,3
6,0
10,1
4,1
2,63.Noneofthedutiesshallapplytoimportsofthe
productsspecifiedinparagraph 1manufacturedandsold
forexporttotheCommunitybyP.T.KewalramIndo­
nesia,Bandung,Indonesia(Taricadditionalcode;8595)
andGuangyingSpinningCo.Ltd,Guangzhou,People's
RepublicofChina(Taricadditionalcode:8596).
4.Incaseswheretheexportingcompanyisnotthe
sameastheproducingcompany,therateapplicableto
theproducingcompanyshallapply.
5.Theprovisionsinforceconcerningcustomsduties
shallapply.
6.ThereleaseforfreecirculationintheCommunityof
theproductsreferredtoinparagraph 1shallbesubjectto
theprovisionofasecurity,equivalenttotheamountof
theprovisionalduty.
Article2
Theanti-dumpingproceedingconcerningtheimportsof
sewingthreadfallingwithinCNcode55081011and
originatingintheRepublicofKorea,Taiwan,Indonesia,
India,thePeople'sRepublicofChinaandTurkeyis
herebyterminated.
Article3
Theanti-dumping proceedingconcerningimportsof
certainyarnsofstaplepolyesterfibresfallingwithinCN
codes55092110,55092190,55092210,55095100and
55095300andoriginatingintheRepublicofKoreais
.herebyterminated.
Article4
WithoutprejudicetoArticle7(4)(b)ofRegulation(EEC)
No2423/88,thepartiesconcernedmaymakeknown
theirviewsandapplytobeheardorallybytheCommis­
sionwithinonemonthofthedateofentryintoforceof
thisRegulation.
Article5
ThisRegulationshallenterintoforceonthedayfollo­
wingthatofitspublicationintheOfficialJournalofthe
EuropeanCommunities .
SubjecttoArticles11,12and13ofRegulation(EEC)No
2423/88,Article1ofthisRegulationshallapplyfora
periodoffourmonths,unlesstheCounciladoptsdefini­
tivemeasuresbeforetheexpiryofthatperiod.YamSyndicateLtd,Calcutta
ModernSyntexLtd,Bombay
SreeSatyamSpinning&Weaving
MillsLtd,Secunderabad
RelianceChemotexIndustriesLtd,
Bombay
TheCoimbatorePioneerMillsLtd,
Peelamadu,Coimbatore
BanswaraSyntexLtd,Bombay
Turkey
BisasBursaIplicSanayiiAŞBursa
SoktasPamukveTarimÜrünlerini
DeğerPendirmeTicaretveSanayii
AŞSöke 8593
8594.CeytasCeyhanTekstil'Sanayii
AŞCeyhan,Adana
Thefree-at-Community-frontier priceshallbenetifthe
actualconditionsofpaymentprovideforpaymentwithin
30daysofthearrivalofthegoodsonthecustomsterri­
toryoftheCommunity .Itshallbeincreasedby1%for
eachfurthermonthbywhichtheperiodforpaymentis
extended.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,27September1991.
FortheCommission
FransANDRIESSEN
Vice-President