COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 166 final 
Brussels, 20 July 1993 
Proposal for a 
mijNriL^_G^AT!ON (EEC) 
amending Regulation (EEC) No 3308/90 by imposing an additional 
anti-dumping duty on imports of woven polyolefin sacks 
originating in the People's Republic of China 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. By Council Regulation (EEC) No 3308/90, an anti-dumping duty of 43.4% was 
imposed on imports of woven polyolefin sacks originating in the People's Republic 
of China. 
2. Subsequently, the Commission received a complaint lodged by the European 
Association for Textiles Polyolefin alleging that the anti-dumping duty imposed by 
Regulation 3308/90 had been borne by the exporters concerned. Since this complaint 
contained sufficient evidence that the duty had been borne by the exporters, the 
Commission announced the initiation of an investigation, provided for in Article 
13(11) of Regulation (EEC) No 2423/88, in a notice published in the Official Journal 
of the European Communities on 15 June 1991. 
3. The Commission based its findings on the information supplied by the Chinese 
exporters. 
4. It was found that, by reducing their prices for export to the Community after 
imposition of an anti-dumping duty, exporters of these sacks originating in the 
People's Republic of China have borne the anti-dumping duty. 
5. The absorption of duty was calculated on the basis of the difference between the 
import price of woven polyolefin sacks originating in the People's Republic of China 
during the period of the original investigation and the import price during the period 
following imposition of the anti-dumping duty. On the basis of this comparison and 
taking into account the reduction in the export price, the level of absorption is 97.6% 
when expressed as a percentage of the amount of duty paid on the reduced export 
price. 
6. Given that the imposition of the original duty of 43.4% had been considered to be in 
the Community's interest, it follows that a measure aimed at restoring the effect of the 
duty concerned is in the Community's interest. 
Since the exporters have borne 97.6% of the exisitng 43.4% anti-dumping duty, an 
additional anti-dumping duty equivalent to the level of this absorption must therefore 
be imposed (97.6% of 43.4% = 42.3%). 
It is therefore proposed that the Council amend Regulation (EEC) No 3308/90 and 
impose a total duty of 85.7% on the net, free-at-Community frontier price of imports 
of woven polyolefin sacks originating in the People's Republic of China. 
Proposal lor a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 3308/90 by imposing an additional 
anti- dumping duty on imports of woven polyolefin sacks 
originating in the People's Republic of China 
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 , and in particular Articles 12 and 13(11) and 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. PROCEDURE 
1. By Commission Regulation (EEC) No 2051/90(2), a provisional anti-dumping duty of 
43.4% was imposed on imports of woven polyolefin sacks originating in the People's 
Republic of China. This duty was confirmed by Council Regulation (EEC) No 
3308/90(3). 
2. The Commission received a complaint lodged by the European Association for 
Textiles Polyolefin (EATP) on behalf of producers representing a major proportion of 
Community production of woven polyolefin sacks, alleging that all or part of the anti­
dumping duty had been borne by the exporters concerned 
3. Since the complaint contained sufficient evidence of absorption of anti-dumping duty 
by the exporters, the Commission announced the initiation of an investigation as 
provided for in Article 13(11) of Regulation (EEC) No 2423/88, in a notice published 
in the Official Journal of the European Communities(4). 
4. The Commission officially advised the exporters and importers known to be concerned 
and gave interested parties the opportunity to make their views known in writing. 
5. Replies to the Commission's questionnaire were received on behalf of nine Chinese 
exporters. Only two of the replies of the importers to whom questionnaires were sent 
contained substantive information. These two importers accounted for approximately 
36% of total imports into the Community of woven polyolefin sacks originating in the 
People's Republic of China. 
(i) 
(2) 
t») 
(4) OJ No L 209, 2.8.1988, p. 1. 
OJ NoL 187, 19.7.1990, p. 36. 
OJ No L 318, 17.11.1990, p. 2. 
OJ No C 157, 15.6.1991, p. 5 . 
6. None of the interested parties requested the Commission to undertake a full review 
Regulation (EEC) No 3308/90 pursuant to Article 14 of Regulation (EEC) No 
2423/88. Moreover, on the basis of the information available, the Commission did not 
consider that circumstances had changed sufficiently to justify the need for such a 
review on the Commission's initiative. 
7. The investigation into absorption of the anti-dumping duty by the exporters covered 
the original investigation period, I January 1988 to 31 December 1988, which had 
been taken into account for calculation of the anti-dumping duty, and the nine-month 
period following the imposition of the provisional anti-dumping duty and prior to the 
initiation of the present investigation i.e. from 1 August 1990 to 30 April 1991. 
B PRODUCT 
8. The product under consideration is identical to the product subject to the definitive 
anti-dumping duty referred to in recital 1, i.e. woven polyolefin sacks (polyethylene 
or polypropylene) falling within CN code 6305 31 91. 
C. ABSORPTION OF THE ANTI-DUMPING DUTY BY THE EXPORTER 
(I) Existence of absorption of duty 
9. The Commission based its findings on the export prices provided by the Chinese 
exporters who replied to the Commission's questionnaire, and used official customs 
statistics and information verified at the premises of the co-operating importers to 
corroborate the information obtained from the Chinese exporters. 
10. The information on prices provided by the Chinese exporters clearly shows that, 
following the imposition of provisional anti-dumping duties by Regulation (EEC) No 
2051/90 on woven polyolefin sacks, the import price at Community frontier (i.e. the 
CIF price before payment of customs and anti-dumping duties) fell considerably. 
11. As a consequence, by reducing their prices for export to the Community after 
imposition of the anti-dumping duty, the exporters of woven polyolefin sacks 
originating in the People's Republic of China have absorbed completely or partially 
the effect of the anti-dumping duty. 
(II) Extent of absorption of the duty 
12. Since the absorption took the form of a lowering of export prices, the extent of 
absorption of the anti-dumping duty has been calculated on the basis of a comparison 
of prices of woven polyolefin sacks originating in the People's Republic of China 
during the period 1 January 1988 to 31 December 1988, and prices during the period 
following imposition of an anti-dumping duty i.e., from 1 August 1990 to 
30 April 1991. 
:'L.t;C' *, i\ ait c _/;u *'^ rt .. ' it '* c jtj *« - vc* t-t " " * LT 
with :ji upTio!*ri "or :i: o.:.j, i the a* ti-Hi.nr p>i-f :"iny to rcach r ;.rK"v ;» - ' *, i\r 
produu ur.Utr cot:s»c€ic»on sb^i'l'- Iiave be. .-U* -n th.. Copui^mî}' 
This price was then compared to the OF price, anti-dumping duty paid, for the nine 
month period following the imposition of the provisional duty. In establishing these 
prices, the Commission followed the same methodology and used the same exchange 
rates as for the calculation of the prices in the original investigation period. On the 
basis of this comparison, taking into account the reduction in the export price, the 
level of absorption is 97.6% when expressed as a percentage of the amount of duty 
paid on the reduced export price. 
D OTHERS FACTORS 
14. The Chinese exporters claimed that in investigating the allegation of absorption the 
Commission should take into account the impact of currency fluctuations and changes 
in raw material prices in China on their export prices to the Community. They argued 
that any decrease in their export price after the imposition of duty was attributable to 
those factors. 
In addressing this argument, it is recalled that as the People's Republic of China is not 
a market economy country, normal value had to be based on the normal value of the 
like product in India. Since the Commission has no convincing evidence at its 
disposal, nor was any submitted that the normal value established for the Indian 
producers has altered and in any event not to an extent to influence the conclusions 
of this investigation, a general review is not warranted nor has any request for such 
a review been received. 
E CONCLUSION 
15. On the basis of the above findings, the Council concludes that the exporter has 
effectively borne a large part of the anti-dumping duty through a corresponding 
reduction in its export price and that its dumping margin is not lower than the sum 
of the original duty and the amount borne. 
F. COMMUNITY INTEREST 
16. The purpose of the additional anti-dumping duty provided for in Article 13(11) of 
Regulation (EEC) No 2423/88 is to compensate for the amount of the anti-dumping 
duty borne by the exporter, which effectively increases his dumping margin and 
nullifies the effect of the original duty. 
17. The Commission has no reason to believe that the findings concerning Community 
interest expressed in recitals 7 and 8 of Regulation (EEC) No 3308/90 warrant 
amendment. 
18. Moreover, given that the absorption of an anti-dumping duty by the exporters cancels 
the effect of the anti-dumping duty and therefore prevents the removal of the injury 
suffered by the Community industry, and that the imposition of this duty had been 
considered to be in the Community's interest, a measure aimed at restoring the effect 
of the said duty is therefore in the Community's interest. 
19. No other arguments showing that additional measures would not be in the Community 
interest have been put forward. 
G. ADDITIONAL ANTI-DUMPING DUTY 
20. In order to compensate for the level of absorption and to restore the effect of the 
original duty, an additional duty, equivalent to 97.6% of the existing duty, i.e. 42.3% 
is required to bring the current Chinese export price up to the level envisaged by 
Regulation (EEC) No 3308/90. 
21. Since the anti-dumping duty currently in force is 43,4% of the net, free-at-Community 
frontier price, an additional duty of 42.3% must be imposed. The total anti-dumping 
duty imposed on imports of woven polyolefin sacks originating in the People's 
Republic of China should, therefore, be 85.7% 
For practical reasons, the imposition of this additional duty takes the form of an 
amendment to Regulation (EEC) No 3308/90. This does not constitute a modification 
of the anti-duhiping duty within the meaning of Article 15(1) of Regulation (EEC) 
No 2423/88 and, therefore, the expiry date of the anti-dumping duty, including the 
additional duty, remains unchanged, 
HAS ADOPTED THIS REGULATION 
Article I 
Article 1(2) of Regulation (EEC) No 3308/90 is replaced by the following. 
"2. The rate of duty, applicable to the net, free-at-Community frontier price, before duty 
shall be 85.7%". 
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 
COM (93) 166 final 
DOCUMENTS 
EN 11 02 
Catalogue number : CB-CO-93-188-EN-C 
ISBN 92-77-54840-1 
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