[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 13.2.2009

COM(2009) 60 final

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 1425/2006 imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags originating in the People's Republic of China or Thailand, and terminating the proceeding on imports of certain plastic sacks and bags originating in Malaysia

(presented by the Commission)

EXPLANATORY MEMORANDUM

CONTEXT OF THE PROPOSAL |

110 | Grounds for and objectives of the proposal This proposal concerns the application of Council Regulation (EC) No 384/96[1] on protection against dumped imports from countries not members of the European Community as last amended by Council Regulation (EC) No 2117/2005[2] (‘the basic Regulation’) in the proceeding concerning imports of certain plastic sacks and bags originating in the People's Republic of China (PRC) and Thailand. |

120 | General context This proposal is made in the context of the implementation of the basic Regulation and is the result of an investigation which was carried out in line with the substantive and procedural requirements laid out in the basic Regulation. |

139 | Existing provisions in the area of the proposal Council Regulation (EC) No 1425/2006[3], imposing a definitive anti-dumping duty on imports into the Community of certain plastic sacks and bags originating in the People's Republic of China (PRC) and Thailand. As last amended by Council Regulation (EC) 1356/2007[4]. Proposal for granting new exporting producer treatment to new exporting producers to the Community. |

141 | Consistency with other policies and objectives of the Union Not applicable. |

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT |

Consultation of interested parties |

219 | The applicants who co-operated and the Community industry have been informed of the findings of the examination and have had the opportunity to submit their comments. |

Collection and use of expertise |

229 | There was no need for external expertise. |

230 | Impact assessment This proposal is the result of the implementation of the basic Regulation. The basic Regulation does not make provision for a general impact assessment but contains an exhaustive list of conditions that have to be assessed. |

LEGAL ELEMENTS OF THE PROPOSAL |

305 | Summary of the proposed action By Regulation (EC) No 1425/2006 the Council imposed a definitive anti-dumping duty on imports into the Community of certain plastic sacks and bags originating in the People's Republic of China ('PRC') and Thailand. During the investigation that led to the imposition of the anti-dumping duty (the 'original investigation'), given the large number of exporters/producers of the product concerned in the PRC and Thailand, a sample of exporting producers was chosen. Individual duty rates ranging from 4.8% to 14.3% were imposed on the companies selected in the sample in the PRC and Thailand. The cooperating companies not included in the sample were attributed a duty rate of 8.4% for the PRC and 7.9% for Thailand. Residual duty rates of 28.8% for the PRC and 14.3% for Thailand were imposed on all other companies. Article 2 of Council Regulation (EC) No 1425/2006 gives the possibility to any new exporting Chinese or Thai producer which meets the criteria set out in that Article to be granted the same treatment as the co-operating companies not included in the sample (‘new exporting producer treatment’ or 'NEPT'). Seven applicants (five Chinese and two Thai) have requested NEPT. Only three Chinese companies provided evidence which was considered sufficient to amend Council Regulation (EC) No 1425/2006 by adding their names to the list of companies subject to the weighted average duty rate of 8.4%. The applications of the remaining companies were rejected for the following reasons: two Chinese companies did not reply to the application form or the questionnaire; one Thai company provided misleading information; and another Thai company exported the product concerned to the Community during the investigation period of the original investigation. It is therefore proposed that the Council adopt the attached proposal for a Regulation, which should be published in the Official Journal as soon as possible. |

310 | Legal basis Council Regulation (EC) No 384/96 and Article 2 of Council Regulation (EC) No 1425/2006. |

329 | Subsidiarity principle The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply. |

Proportionality principle The proposal complies with the proportionality principle for the following reason(s). |

331 | Council Regulation (EC) No 1425/2006 of 25 September 2006 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain plastic sacks and bags originating in the PRC and Thailand leaves no scope for national decision. Indication of how financial and administrative burden falling upon the Community, national governments, regional and local authorities, economic operators and citizens is minimized and proportionate to the objective of the proposal is not applicable. |

332 |

Choice of instruments |

341 | Proposed instruments: regulation. |

342 | Other means would not be adequate for the following reason(s). The above-mentioned basic regulation does not foresee alternative options. |

BUDGETARY IMPLICATION |

409 | The proposal has no implication for the Community budget. |

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 1425/2006 imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags originating in the People's Republic of China or Thailand, and terminating the proceeding on imports of certain plastic sacks and bags originating in Malaysia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to Council Regulation (EC) No 384/1996 of 22 December 1995 on protection against dumped imports from countries not members of the European Community (‘the basic Regulation’)[5],

Having regard to Article 2 of Council Regulation (EC) No 1425/2006[6] of 25 September 2006 imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags originating in the People's Republic of China and Thailand, and terminating the proceeding on imports of certain plastic sacks and bags originating in Malaysia,

Having regard to the proposal submitted by the Commission after consulting the Advisory Committee,

Whereas:

A. PREVIOUS PROCEDURE

(1) By Regulation (EC) No 1425/2006, the Council imposed a definitive anti-dumping duty on imports into the Community of certain plastic sacks and bags falling within CN codes ex 3923 21 00 (TARIC code 3923 21 00 20), ex 3923 29 10 (TARIC code 3923 29 10 20) and ex 3923 29 90 (TARIC code 3923 29 90 20), originating in the People's Republic of China ('PRC') and Thailand. Given the large number of co-operating exporting producers in the investigation that led to the imposition of the anti-dumping duty ('the original investigation'), a sample of Chinese and Thai exporting producers was selected and individual duty rates ranging from 4.8% to 14.3% were imposed on the companies included in the samples, while other co-operating companies not included in the sample were attributed a duty rate of 8.4% for the PRC and 7.9% for Thailand. Duty rates of 28.8% for the PRC and 14.3% for Thailand were imposed on companies which either did not make themselves known or did not cooperate with the investigation.

(2) Article 2 of Council Regulation (EC) No 1425/2006 stipulates that where any new exporting producer in the PRC or Thailand provides sufficient evidence to the Commission that

- it did not export to the Community the products described in Article 1(1) of that Regulation during the investigation period (1 April 2004 to 31 March 2005) ('the investigation period') (the first criterion);

- it is not related to any of the exporters or producers in the PRC or Thailand which are subject to the anti-dumping measures imposed by that Regulation (the second criterion); and

- it has actually exported to the Community the products concerned after the investigation period on which the measures are based, or it has entered into an irrevocable contractual obligation to export a significant quantity to the Community (the third criterion);

then Article 1 of that Regulation can be amended by granting the new exporting producer the duty rate applicable to the co-operating companies not included in the sample, i.e. 8.4% for Chinese companies and 7.9% for Thai companies.

B. NEW EXPORTING PRODUCERS’ REQUESTS

(3) Seven companies (five Chinese and two Thai) have applied to be granted the same treatment as the companies cooperating in the original investigation not included in the sample ("new exporting producer treatment").

(4) An examination has been carried out to determine whether the seven companies fulfil the criteria for being granted new exporting producer treatment as set out in Article 2 of Council Regulation (EC) No 1425/2006.

(5) An application form was sent to all seven applicants who were also asked to supply evidence to demonstrate that they meet the three criteria mentioned above.

(6) Two Chinese companies requesting new exporting producer treatment did not provide the requested information. It was therefore not possible to verify whether these companies fulfilled the criteria set out in Article 2 of Council Regulation (EC) No 1425/2006, and their requests had to be rejected.

(7) One Thai company provided misleading information and its request was therefore rejected.

(8) One Thai company exported the product concerned to the Community during the investigation period. It thus did not meet the first criterion and its request was therefore rejected.

(9) The evidence provided by the remaining three Chinese exporting producers is considered sufficient to show that they fulfil the criteria set out in Article 2 of Council Regulation (EC) No 1425/2006 and therefore to grant them the duty rate applicable to the co-operating companies not included in the sample (8.4% for Chinese companies) and consequently to add their names to the list of exporting producers in Annex I to Council Regulation (EC) No 1425/2006.

(10) The applicants and the Community industry were informed of the findings of the examination and were given the opportunity to submit their comments.

(11) All arguments and submissions made by interested parties were analysed and duly taken into account where warranted,

HAS ADOPTED THIS REGULATION:

Article 1

The following companies shall be added to the list of producers from China listed in Annex I to Council Regulation (EC) No 1425/2006:

Company | City |

Huiyang Kanlun Polyethylene Manufacture Factory | Huizhou |

Bao Xiang Plastic Bag Manufacturing (Shenzhen) Co., Ltd. | Shenzhen |

Quanzhou Polywin Packaging Co. Ltd | Nanan |

Article 2

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union .

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

[1] OJ L 56, 6.3.1996, p. 1.

[2] OJ L 340, 23.11.2005, p. 17.

[3] OJ L 270, 29.09.2006, p. 4.

[4] OJ L 304, 22.11.2007, p. 5.

[5] OJ L 56, 6.3.1996, p. 1.

[6] OJ L 270, 29.09.2006, p. 4.