COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 508 final 
Brussels, 26 October 1993 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 738/92 imposing a definitive 
anti-dumping duty on imports of cotton yarn, originating in 
Brazil and Turkey 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. Council Regulation (EEC) No 738/92 imposed a definitive anti-dumping duty on 
imports of cotton yam falling within CN codes 5205 11 00 to 5205 45 90 and 
5206 11 00 to 5206 45 90, originating in Brazil and Turkey. 
2. This Regulation stated that the Commission would initiate a review proceeding for 
those exporters who supplied sufficient evidence to the Commission to show that they 
had not exported the products concerned to the Community during the original 
investigation period (1 January to 31 December 1989), that they subsequently started 
such exports or have a firm intention of doing so, and that they are not related 
to, or associated with, any of the companies subject to the anti-dumping duty 
(so-called "newcomers") 
3. Four Brazilian companies and one Turkish company requested a newcomer investigation 
and on the basis of the evidence submitted, the Commission has accordingly initiated 
a review with regard to these companies. 
4. Normal value has been determined either on the basis of the comparable price actually 
paid or payable in the ordinary course of trade in the country of origin or by adding 
cost of production and a reasonable amount for sales, general and administrative costs 
and profit. 
5. For three Brazilian and the Turkish producers, export prices were determined on the 
basis of the prices actually paid for the cotton yam sold for export to the Community. 
In the case of one Brazilian producer who sold exclusively to a related importer in the 
Community, export prices were constructed on the basis of the price to the first 
independent customer in the Community, adjusted to take account of all costs incurred 
between importation and resale and for a reasonable amount of profit. 
6. The examination of the facts showed the following dumping margins: 
- Brazil 
Cocamar Ltda. 12.3% 
Corduroy S.A. 11.7% 
Cotece S.A. 10.9% 
Norfil S/A. 8.7% 
- Turkey 
Kula Mensucat Fabrikasi AS. 8.4% 
7. No request for review of the findings on injury was made. 
In accordance with Article 13(3) of Regulation (EEC) No ?A2?*IM. «i.i. .-'i«.«- i c* r .1 
dumping duties should not exceed the dumping margni established s» <i K^ ;^o iT ; ih 
lesser doty would be adequate to remove the injury. 
In the present case, since the dumping margins established are lower than the injuiy 
margins found in the original proceeding, the Commission proposes that 
Regulation (EEC) No 738/92 of 23 March 1992 be amended and that the level of duly 
applicable to each of the five companies concerned be the level of the dumping margin? 
established. 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 738/92 imposing a definitive 
anti-dumping duty on imports of cotton yarn, originating in 
Brazil and Turkey 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on protection against 
dumped or subsidized imports from countries not members of the European Economic 
Community(1), and in particular Article 14 thereof, 
Having regard to the proposal submitted by the Commission after consultation within the 
Advisory Committee as provided for under the abovementioned Regulation, 
Whereas: 
A. PREVIOUS PROCEDURE 
(1) By Regulation (EEC) No 738/92(2), the Council imposed a definitive anti-dumping duty 
on imports of cotton yarn falling within CN codes 5205 11 00 to 5205 45 90 and 
5206 11 00 to 5206 45 90, originating in Brazil and Turkey. 
(2) In that Regulation the Council noted that the Commission would be ready to initiate 
without delay a review proceeding for the exporters who supplied sufficient evidence 
to the Commission that they had not exported the products concerned to the Community 
during the original investigation period (1 January to 31 December 1989), that they only 
started such exports after the said period or have a firm intention of doing so and that 
they are not related to, or associated with, any of the companies subject to the anti­
dumping duty (so-called "newcomers"). 
B. REVIEW 
(3) Four Brazilian companies, Cocamar Ltda., Corduroy S.A., Cotece S.A., Norfil S/A. and 
a Turkish company, Kula Mensucat Fabrikasi AS., made themselves known to the 
Commission, claiming that they had not exported the products concerned during the 
investigation period and only commenced doing so after that period. They also claimed 
that they were not related to any of the companies subject to the anti-dumping duties 
and requested that a newcomer review be opened. 
(i) 
(2) OJNoL209, 2.8.1988, p. 1 
OJNoL82, 27.3.1&92, p. 1. 
(4) Those companies provided, on request, evidence of the facts they alleged. The evidence 
provided has been considered sufficient to justify the initiation of a review in 
accordance with the provisions of Articles 7 and 14 of Regulation (EEC) No 2423/88 
(herinafter referred to as "the Basic Regulation"). By a notice published on 
23 September 1992(3), the Commission, after consultation of the Advisory Committee, 
initiated a review of Regulation (EEC) No 738/92 with regard to the five companies 
cited above and commenced its investigation. 
C RESULT OF INVESTIGATION 
1. Normal value 
(5) Normal value has been determined on the basis of the comparable price actually paid 
or payable in the ordinary course of trade for the like product intended for consumption 
in the country of origin when sales on the domestic market were representative and 
profitable. 
When there were no such sales, normal value has been constructed in accordance with 
Article 2(3)(b)(ii) of the Basic Regulation by adding cost of production, including a 
reasonable amount for sales, general and administrative costs and a margin for profit. 
In the case of non-profitable sales in Brazil, their margin was based on the average 
profit of the domestic sales of the product concerned of the other exporting producers. 
2. Export price 
(6) lot tluee liia/lliaii produce»?; ami the Iwlhli pimfmc-r, ^pm» p«h«^ weie tleteimiMed 
by the Commission on the basis of the prices actually paid for the cotton yam sold for 
export to the Community. 
In the case of one Brazilian producer which sold exclusively to a related importer in 
the Community, export prices were constructed pursuant to Article 2(8)(b) of the 
Basic Regulation and were therefore based on the price to the first independent 
customer in the Community, adjusted to take account of all costs incurred between 
importation and resale and for a reasonable amount of profit. 
3. Comparison 
(7) For the purpose of a fair comparison between normal value and export price, account 
was taken of differences affecting price comparability in accordance with Article 2(9) 
and (10) of the Basic Regulation, namely commissions, credit terms, transport, 
insurance, handling, packing and other related costs. Export prices, on a transaction-by-
transaction basis, were compared with normal value at ex-works level, at the same level 
of trade. 
(3) OJ No C 244, 23.9.1992, p. 14. 
4. Dumping margin 
(8) The examination of the facts showed the existence of dumping with respect to the 
cotton yarn exported by the five companies. The margins of dumping, being equal to 
the amount by which normal value exceeds the price for export to the Community, 
expressed as a percentage of total CIF value, were as follows: 
- Brazil 
CocamarLtda. 12.3% 
Corduroy S.A. 11.7% 
CoteceS.A. 10.9% 
Norfil S/A. 8.7% 
- Turkey 
Kula Mensucat Fabrikasi A.S. 8.4% 
5. Injury 
(9) No request for review of the findings on injury was made and there is no reason to 
doubt the validity of the injury findings in the original investigation. 
D. AMENDMENT OF THE REVIEWED MEASURES 
(10) In accordance with Article 13(3) of the Basic Regulation, the amount of anti-dumping 
duties should not exceed the dumping margin established and be less if such lesser duty 
would be adequate to remove the injury. 
In the present case, since the dumping margins established are lower than the injury 
margins found in the original proceeding, the Commission considers that 
Regulation (EEC) No 738/92 should be amended and that the level of duty applicable 
to each of the five companies concerned should be the level of the dumping margins 
established (see recital (9)). 
(11) The five exporting companies and the complainant have been informed of those 
findings and have raised no objection. 
(12) Since the review is limited to one Turkish and four Brazilian producers, it does not 
affect the date on which Regulation (EEC) No 738/92 will expire pursuant to 
Article 15(1) of the Basic Regulation, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Article 1(2) of Regulation (EEC) No 738/92 is hereby amended as follows: 
1. Under (a) the following is added: 
Cocamar 12.3% 8735 
Cooperativa de Cafeicultores 
e Agropecuaristas de Maringâ Ltda. 
Corduroy S.A. 11.7% 8736 
Indûstrias Têxteis 
Cotece S.A. 10.9% 8737 
Norfil S/A. 8.7% 8738 
Indûstria Têxtil 
2. Under (b) the following is added: 
Kula Mensucat Fabrikasi AS. 8.4% 8739 
Article 2 
This Regulation shall enter into force on the day following that of 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 
The President 
EN ISSN 0254-1475 
COM (93) 508 final 
DOCUMENTS 
11 02 
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ISBN 92-77-59899-9 
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