COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 327 final 
Brussels, 21 August 1991 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) N*3905/88 and 
repealing the definitive anti-dumping duty 
imposed on imports into the Community 
of polyester yarn originating in Mexico. 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
1. Following a request lodged in September 1990 by several exporters 
from Mexico, the Commission announced, in November 1990, the 
initiation of a review of anti-dumping measures concerning imports 
of polyester yarn originating in Mexico, in accordance with Article 
14 of Council Regulation (EEC) N' 2423/88, and commenced an 
invest igat ion. 
2. The measures under review were anti-dumping duties of 15.8% on non-
textured partially oriented filament yarn (POY) and anti-dumping 
duties ranging from 5.8% to 26.7% on textured polyester yarn 
filament (PTY), imposed by Council Regulation (EEC) N* 3905/88. This 
regulation also imposed duties on polyester yarn from South Korea, 
Taiwan and Turkey, which are not part of the present case. 
3. a) In calculating dumping, normal value has been established on 
the basis of the price actually paid or payable for the product 
sold on the domestic market. In the case of two exporters, 
domestic price was consistently and substantially below cost of 
production during the investigation period. In these cases, 
normal value was based on cost of production plus domestic 
profit from other exporters. Export prices were based on the 
price paid or payable for the product exported to the 
Community. 
b) Normal values (calculated on a monthly average bases) and 
export prices (brought to ex-factory level) were compared for 
the corresponding month on a transaction-by-transaction basis. 
With the exception of one exporter of PTY, whose dumping margin 
(0.53%) is, according to a consistent practice cf the 
Commission, considered to be de minimis, no dumping wa~ found 
as regards imports of PTY and POY originating in Mexico. 
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The investigation has therefore demonstrated that imports of 
polyester yarn originating in Mexico are no longer being dumped. 
The Council notes that this absence of dumping, in the presence of a 
significant volume of imports, has come about as a result of a 
durable change in the behaviour of the exporters, notably in the 
area of pricing policy. 
In view of these changed circumstances, it is proposed that the 
definitive anti-dumping duty imposed by Regulation (EEC) N' 3905/88 
on imports originating in Mexico be repealed. The provisions of 
Regulation (EEC) N* 3905/88 which relate to imports of the same 
product originating in South Korea, Taiwan and Turkey should remain 
unchanged. Furthermore, it should be noted that this amendment, 
which relates only to imports originating in Mexico, has no effect 
on the date on which the definitive anti-dumping duty imposed on 
imports of polyester yarn originating in South Korea, Taiwan and 
Turkey shall lapse. This date continues to be based on the date of 
entry into force of Regulation (EEC) N" 3905/88. 
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THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, 
Having regard to Council Regulation (EEC) N" 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 
Art icle 14 thereof, 
Having regard to the proposal submitted by the Commission after 
consultations within the Advisory Committee as provided for under the 
above Régulât ion, 
Whereas, 
A. PROCEDURE 
In November 1990 the Commission announced by a notice published in 
the Official Journal of the European Commun!ties<2) the 
initiation of a review of anti-dumping measures concerning imports 
of polyester yarn originating in Mexico, in accordance with 
Article 14 of Regulation (EEC) N" 2423/88 and commenced an 
investigation. The measures in question consisted of definitive 
duties on imports of polyester yarn originating in Mexico imposed 
by Council Regulation (EEC) N' 3905/88*3>. 
(1) OJ N- L 209 2/08/1988, p. 1 
(2) OJ N" C 289 17/11/1990, p. 7. 
(3) OJ N* L 347 16/12/1988, p. 10. 
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2. The proceeding was initiated as a result of a request lodged in 
September 1990 by several exporters in Mexico. The request 
alleged changed circumstances since the imposition of the 
definitive anti-dumping duty. In particular, it was alleged that 
imports of polyester yarn from Mexico to the Community were now 
being made at non-dumped prices. The evidence contained in this 
request was considered sufficient to justify opening a proceeding. 
3. The Commission officially advised the exporters known to be 
concerned, the representatives of the exporting country and the 
complainant in the original proceeding, the Comité International 
de la Rayonne et des Fibres Synthétiques (CIRFS) representing the 
Community industry, and gave the parties concerned the opportunity 
to make their views known in writing and to request a hearing. 
4. The exporters and CIRFS made their views known in writing. 
5. The Commission sought and verified all information it deemed 
necessary for the purposes of this proceeding and carried out 
investigations at the premises of the following Mexican 
producers/exporters: 
Fibras Quimicas SA, Monterrey, Mexico 
Nylon de Mexico SA, Monterrey, Mexico 
Kimex SA, Mexico City 
Fibras Sinteticas SA, Mexico City 
Celanese Mexicana SA, Mexico City 
6. The investigation of dumping covered the period 1 January 1990 to 
30 September 1990 (the investigation period). 
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B. PRODUCTS UNDER CONSIDERATION 
(i) Definition of products 
7. The products concerned are non-textured partially oriented 
filament yarn (POY), falling within CN Code 5402 42 00, and 
textured polyester yarn filament (PTY), falling within CN Codes 
5402 33 10 and 5402 33 90. 
(ii) Description of products 
8. POY is used to produce PTY and other types of yarn. PTY of 
varying quality is produced, and there are several different 
types. 
9. Three qualities of PTY are produced 
1st Quality: Mechanically perfect, guaranteed for dyeing 
2nd Quality: Mechanically perfect, not guaranteed for dyeing 
("whites only") 
3rd Quality: Lower quality yarn 
The proportion of each quality produced depends on the efficiency 
of the production process. The exporters are producing all three 
qua I it ies of PTY. 
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10. There are different types of PTY. The relative thickness and 
weight of PTY is expressed in units of 1 dtex, which is equal to 
the weight in grams of 10.000 metres of yarn. (It is also 
sometimes expressed in denier, of which 1.1 equals 1 dtex). 
Therefore the yarn becomes finer as the number of dtex becomes 
smaller. Furthermore, every type of yarn contains a certain 
number of constituent filaments, given a certain dtex. The 
greater the number of filaments, the greater is the value of the 
yarn. 
C. DUMPING 
(I) Normal value 
11. Normal value was calculated separately for each month (in view of 
the high inflation rate in Mexico) and for each different type and 
quality of yarn. (Recitals 10 and 11). 
12. In general, normal value was established on the basis of the price 
actually paid or payable for the product sold on the domestic 
market. 
13. In the case of two exporters, domestic price was consistently and 
substantially below cost of production during the investigation 
period. In these cases it was considered appropriate to establish 
a constructed normal value in accordance with Article 2(3)(b)(ii) 
of Regulation (EEC) n" 2423/88 using these companies' costs of 
production plus a profit (6%), equivalent to that realised by 
other Mexican exporters on profitable sales in the domestic 
market, which was considered to be a reasonable level of profit. 
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(il) Export price 
14. Export prices were determined on the basis of the price actually 
paid or payable for the product exported to the Community. 
(i i i) Comparison 
15. The normal value per type and quality (calculated on a monthly 
average basis) was compared with export prices of the same type 
and quality for the corresponding month on a transaction-by-
transaction basis. Requests for allowances were accepted with 
regard to differences affecting price comparability and bearing a 
direct relationship to the sales under consideration and for which 
satisfactory evidence was submitted. All comparisons were made at 
the ex-factory level. 
(iv) Dumping margins 
16. With the exception of one exporter of PTY, whose dumping margin 
(0.53%) is, according to the consistent practice of the 
Commission, considered to be de minimis, no dumping was found as 
regards imports of PTY and POY originating in Mexico. 
17. The Council confirms the conclusions of the Commission relating to 
dump i ng. 
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C. CONCLUSION 
(i) Repeal of ant I-dumping measures 
18. The investigation has demonstrated that imports of polyester yarn 
from Mexico are no longer being dumped. The Council notes that 
this absence of dumping, in the presence of a significant volume 
of imports, has continued over a substantial period and has been 
repeated on export markets outside the Community. The Council 
therefore concludes that there has been a durable change in the 
behaviour of the Mexican exporters, particularly in the area of 
pricing policy. In view of these changed circumstances, the 
Council considers that the anti-dumping measures concerning 
imports of polyester yarn originating in Mexico are now neither 
justified nor necessary and should therefore be repealed. 
19. The exporters and the complainant requested, and were granted, the 
opportunity to be heard by the Commission. 
At their request, the exporters and the complainant were also 
informed of the essential facts and considerations on the basis of 
which it was proposed to recommend the repeal of the ant I-dumping 
measures, concerning imports of polyester yarns originating in 
Mex i co. 
The parties were granted a period within which to make 
representation on any of the above matters subsequent to 
disclosure. Where appropriate, their comments were taken into 
considérât ion. 
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20. Since the imports orginating in South Korea, Taiwan and Turkey 
were of such importance that they have to be considered to have by 
themselves cumulatively caused material injury during the original 
investigation period, the repeal of the anti-dumping measures 
concerning imports of polyester yarn originating in Mexico cannot 
have any effect on the continuing validity of the anti-dumping 
measures imposed on imports of the same product originating in 
South Korea, Taiwan and Turkey. 
(ii) Amendment to Regulation 3905/88 
21. Regulation (EEC) N" 3905/88 relating to imports of polyester yarn 
originating in Mexico, South Korea, Taiwan and Turkey, should 
accordingly be amended in order to repeal the definitive anti­
dumping duty imposed by that regulation on imports originating in 
Mex ico. 
22. The provisions of Regulation (EEC) N* 3905/88 which relate to 
imports of the same product originating in South Korea, Taiwan and 
Turkey should remain unchanged. 
23. This amendment, which relates only to imports originating in 
Mexico, should have no effect on the expiry of the definitive 
anti-dumping duty imposed on imports of polyester yarn originating 
in South Korea, Taiwan and Turkey. 
The prospective date on which the measures concerning these 
countries shall lapse should continue to be based on the date of 
entry into force of Regulation (EEC) n* 3905/88, 
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HAS ADOPTED THIS REGULATION 
ARTICLE I 
Article 1 (1) of Regulation (EEC) N" 3905/88 is hereby amended to 
exclude the reference to "Mexico". 
Article 1 (2) of Regulation (EEC) N* 3905/88 Is hereby amended to 
exclude the following paragraph: 
- "15.8% for POY originating in Mexico excluding yarn produced and 
sold for export to the Community by Celanese Mexicana SA, Mexico 
City, which shall not be subject to such a duty;" 
ARTICLE 2 
Article 2 (1) of Regulation (EEC) N' 3905/88 is hereby amended to 
exclude the reference to "Mexico". 
Article 2 (2) of Regulation (EEC) N' 3905/88 is hereby amended to 
exclude the following paragraph: 
- "26.7% for PTY originating in Mexico. The following duties shall 
be applicable to PTY produced and sold for export to the Community 
by the companies listed below: 
- Celanese Mexicana SA, Mexico City 15.9% 
- Fibras Quimicas SA, Monterrey 5.8% 
- Kimex SA, Mexico City 18.7%;" 
The remainder of Regulation (EEC) 3905/88 shall remain unchanged. 
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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 CounciI 
EN ISSN 0254-1475 
COM(91) 327 final 
DOCUMENTS 
11 02 
Catalogue number : CB-CO-91-377-EN-C 
ISBN 92-77-75479-6 
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