COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 10.07.1996 
COM(96) 334 final 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Council Regulation (EEC) No 54/93 imposing a definitive anti-dumping 
duty on imports of synthetic fibres of polyesters originating in India and the 
Republic of Korea 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. The Council, by Regulation (EEC) 54/93, imposed a definitive anti-dumping duty 
on imports of synthetic fibres of polyesters originating, inter alia, in India. This 
regulation established a residual duty of 7.2% which is applicable to exporters not 
co-operating or not known when the original investigation took place. 
2. Pursuant to Article 11(4) of the Basic Anti-Dumping Regulation, each new exporter 
has the right to request that an individual duty calculation be carried out in its 
regard. The Commission received such an application from the Indian company 
Bongaigaon Refinery & Petrochemicals Ltd (hereafter 'Bongaigaon') which claimed 
that it was a new exporter. 
3. Subsequently, the Commission, by Regulation (EC) No 2566/95, initiated a review 
proceeding with regard to Bongaigaon, repealed the anti-dumping duty imposed on 
imports of the product concerned manufactured by this company and directed 
customs authorities to register such imports. The investigation was limited to the 
examination of the situation of Bongaigaon as no request for a review of the injury 
findings had been received. 
4. The dumping margin found amounted to 17.5% and the injury margin amounted to 
13.0%. As the dumping margin was higher than the injury margin, the level of the 
duty was based on the latter. 
5. The current review led to the particularity that the individual "newcomer" duty rate 
was higher than the residual duty initially established. The principle that a review 
requested by an interested party may lead to a result less favourable to that party 
than the status quo ante has however consistently been applied in other cases. 
Consequently, it is proposed that: 
a) an individual anti-dumping duty of 13.0% be imposed on Bongaigaon and 
b) the anti-dumping duty at this rate be collected retroactively on imports from 
Bongaigaon which were subject to registration. 
1/ 
COUNCIL REGULATION (EC) 
amending Council Regulation (EEC) No 54/93 imposing a definitive anti-dumping 
duty on imports of synthetic fibres of polyesters originating in India and 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 members of the European 
Community^), and in particular Article 11 (4) thereof, 
Having regard to the proposal submitted by the Commission after consultating the 
Advisory Committee, 
Whereas : 
A. PREVIOUS PROCEDURE „ 
(1) By Regulation (EEC) No 54/93(2), the Council imposed, inter alia, a definitive 
anti-dumping duty of 7.2% on imports of synthetic staple fibres of polyesters, not 
carded, combed or otherwise processed for spinning, commonly referred to as 
polyester synthetic fibres, currently classifiable within CN code 5503 20 00 and 
originating in India, with the exception of imports from five Indian exporters 
specifically mentioned which were either subject to a lesser rate of duty or no 
duty at all. 
0) OJNoL 56, 06.03.1996, p. 1. 
(2) OJNoL 9, 15.01.1993, p. 2. Z 
B. PROCEDURE 
(2) The Commission received an application for a review of the measures currently 
in force from the Indian company Bongaigaon Refinery & Petrochemicals Ltd. 
(hereafter 'Bongaigaon' or 'the company1). Bongaigaon claimed that it was not 
related to any of the exporters or producers in India which are subject to the anti­
dumping measures on the product, and that it had not exported the product during 
the period of investigation on which the measures are based. Furthermore, the 
company claimed that it had actually exported the product concerned to the 
Community and that it had also entered into irrevocable contractual obligations to 
export significant quantities to the Community. 
(3) Bongaigaon provided, on request, evidence which was considered sufficient to 
justify the initiation of a review in accordance with the provisions of Article 
11(4) of Regulation (EC) No 384/96 (hereafter referred to as the 'Basic 
Regulation'). By Regulation (EC) No 2566/95(3), the Commission, after 
consultating the Advisory Committee, initiated a review of Regulation (EEC) No 
54/93 with regard to Bongaigaon and commenced its investigation. 
By Regulation (EC) No 2566/95, the Commission also repealed the anti-dumping 
duty imposed by Regulation (EEC) No 54/93 with regard to imports of the 
product concerned produced and exported to the Community by Bongaigaon and 
directed customs authorities, pursuant to Article 14(5) of the Basic Regulation, to 
take appropriate steps to register such imports. 
(3) OJNoL 262, 01.11.1995, p. 28. ^ 
(4) The product concerned in this review is the same as the one under consideration 
in Regulation (EEC) No 54/93. 
(5) The Commission officially advised Bongaigaon and the representatives of the 
exporting country. Furthermore, it gave the parties directly concerned the 
opportunity to make their views known in writing and to request a hearing but 
did not receive any reaction in this respect. 
The Commission sent a questionnaire to Bongaigaon and received a proper and 
timely reply. The Commission sought and verified all information it deemed 
necessary for the purposes of the procedure and carried out a verification visit at 
the premises of Bongaigaon, India. 
(6) The investigation of dumping covered the period from 1 July 1994 to 30 June 
1995. 
(7) The same methodology as that used in the original investigation was applied 
where circumstances had not changed. 
C. RESULTS OF THE INVESTIGATION 
1. New exporter qualification 
(8) The investigation confirmed that Bongaigaon had not exported the product 
concerned during the period of investigation on which the measures subject to 
review are based, i.e. from 1 January 1990 to 31 August 1990. Exports of the 
product concerned to the Community started, in fact, only during the company's 
financial year 1993/94. 
5 
In addition, it was found that Bongaigaon had no links, either direct or indirect, 
with the exporters involved in the previous procedure. 
Accordingly, it is confirmed that the company should be considered as a new 
exporter in the sense of Article 11(4) of the Basic Regulation and that its 
individual dumping margin should be determined. 
2. Dumping 
i) Normal value 
9) Although the company's total domestic sales of the like product constituted more 
than 5 % of the volume of export sales to the Community it was found that for the 
product type sold to the Community the domestic sales volume for the 
corresponding type was below this threshold and the prices could not be 
considered representative for the market concerned. 
As the company has produced and sold on the domestic market, in the ordinary 
course of trade, other types of the like product than the one exported to the 
Community, normal value was constructed in accordance with Article 2(3) and 
the first sentence of Article 2(6) of the Basic Regulation. Consequently, normal 
value was calculated on the basis of all costs of production incurred by 
Bongaigaon when producing the product type in question plus a reasonable 
amount for selling, general and administrative expenses and profits, both 
established on the basis of the company's domestic sales of all types of the like 
product in the ordinary course of trade. 
£> 
ii) Export price 
(10) Export sales of the product concerned were made directly to unrelated importers 
in the Community. Export prices were therefore determined on the basis of the 
prices actually paid by these unrelated importers, in accordance with Article 2(8) 
of the Basic Regulation. 
in) Comparison 
(11) For the purpose of a fair comparison between normal value and export price, 
account was taken of differences affecting price comparability as provided for in 
Article 2(10) of the Basic Regulation, namely import charges and indirect taxes, 
discounts, transport and insurance expenses, commission and credit costs. The 
comparison was made at an ex-works level. 
(12) Bongaigaon requested that adjustments should be made for the following benefits 
received for its export performance but not granted in respect of its domestic 
sales: 
Reduction of Corporate Tax due to export sales based on 
the Indian Income Tax Act, 
Benefit for an Export House, 
Market Development Assistance following the Federation 
of Indian Export Organizations Scheme. 
The claim was rejected as Bongaigaon could not demonstrate that these benefits, 
which accrued to the company only after the investigation period and which 
resulted in a reduction of its selling, general and administrative expenses, had any 
direct and measurable effect on prices and price comparability in the sense of 
Article 2(10) of the Basic Regulation. 
+ 
iv) Dumping margin 
(13) The comparison showed the existence of dumping with respect to the synthetic 
fibres of polyesters exported by Bongaigaon. The dumping margin, being equal 
to the amount by which normal value exceeded the price for export to the 
Community, was established on the basis of a comparison of the constructed 
normal value as defined in recital (9) with the weighted average of prices for all 
export transactions of the product concerned to the Community during the period 
mentioned in recital (6). Expressed as a percentage of the free-at-Community-
frontier price, the dumping margin amounted to 17.5%. 
3. Injury 
(14) No request for a review of the findings on injury was made and there is no reason 
to doubt that the level of injury found in the original investigation has not 
decreased. 
D. AMENDMENT OF THE MEASURES BEING REVIEWED 
(15) In accordance with Article 9(4) of the Basic Regulation, the amount of the anti­
dumping duty should not exceed the dumping margin established and should be 
less if a lesser duty would be adequate to remove the injury to the Community 
industry. 
% 
(16) In the present case, the dumping margin established exceeds the injury margin, 
The latter was calculated by applying the same methodology as in the original 
investigation. This methodology is described in detail in recitals (50) to (54) of 
Regulation (EEC) No 1956/92(4). The injury margin found amounted to 13.0%. 
The anti-dumping duty to be imposed should therefore correspond to the injury 
margin established and Council Regulation (EEC) No 54/93 should be amended 
accordingly. 
E. RETROACTIVE LEVYING OF THE ANTI-DUMPING DUTY 
(17) As the review has resulted in a determination of dumping in respect of 
Bongaigaon, the anti-dumping duty applicable to this company shall also be 
levied retroactively up to the date of the initiation of the review against imports 
which, pursuant to Article 3 of Regulation (EC) No 2566/95, have been subject 
to registration. 
F. DISCLOSURE AND DURATION OF MEASURES 
(18) Bongaigaon was informed of the facts and considerations on the basis of which it 
was intended to propose the amendment of Regulation (EEC) No 54/93 and were 
given an opportunity to comment. The Commission also officially advised the 
complainants mentioned in the initial investigation. 
(4) OJ No L 1*7, lé. 07.1992, p. 25. 
Bongaigaon made their views known in writing. They requested that the rate of 
profit should not be based on the domestic sales of all types of the like product 
made in the ordinary course of trade. They also repeated their claim for 
adjustments concerning 
the Reduction of Corporate Tax due to export sales based on the Indian 
Income Tax Act and 
Benefit for an Export House. 
These requests had to be rejected for the reasons set out in recitals 9 and 12. 
(19) This review does not affect the date on which Regulation (EEC) No 54/93 will 
expire pursuant to Article 11(2) of the Basic Regulation. 
HAS ADOPTED THIS REGULATION : 
Article 1 
Article 1(2) of Regulation (EEC) No 54/93 is hereby amended as follows: 
under (a) the following shall be added at the end of the text: 
" Bongaigaon Refinery & Petrochemicals Ltd. 
13,0% (Taric additional code: 8873);" 
J.C 
Article 2 
The anti-dumping duty shall also be levied retroactively up to the date of the 
initiation of the review against those imports, which, pursuant to Article 3 of 
Regulation (EC) No 2566/95, have been subject to registration. 
Article 3 
This Regulation shall enter into force on the day following its publication in the 
Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all 
Member States. 
Done at Brussels, 
For the Council 
^1-1 

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COM(96) 334 final 
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