ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)111
Vol.1982/0039

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)111 final
Brussels/3rdMarch1982
PROPOSAL FORACOUNCIL -REGULATION (EEC)
imposingadefinitiveanti-dumpingdutyonimportsof
certaincottonyam.originating inTurkey
(presented bytheCommission totheCouncil)
C0M(82)111final
t

M
EXPLANATORY MEMORANDUM
ιInDecember1981,theCommission imposedaprovisional anti-dumping
1dutyonimportsofcertaincottonyarnsoriginating inTurkey.
Sincetheimpositionoftheprovisional duty,theCommission has
receivedinformation fromtheTurkishexporters andtheTurkish
Government whichhaveledittoreconsider theconclusions concerning
dumpingsetoutinRegulation (EEC)N°3453/81.
TheinjurybeingcausedtotheCommunityindustryconsists,in
particular,ofanincreaseinthemarketshareoftheTurkish
exporterstothedetrimentoftheCommunityproducers andofprice
depression .
Itisthereforeproposedtoimposeadefinitive anti-dumping dutyof
12%onimportsofcertaincottonyarnsoriginating inTurkey.Itis
furtherproposedthattheamountssecuredbywayofprovisional duty
benowcollected,albeitataratewhichdoesnotexceedthatofthe
definitive duty. j
Regulation (EEC)N°3453/81-OJN°L347of3.12.1981,p.19

PROPOSAL FORCOUNCILREGULATION (EEC)N°
of
imposing adefinitive anti-dumping dutyonimportsofcertaincotton
yarnsoriginating inTurkey
THECOMMISSION OFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)N°3017/79of20December1979
onprotection againstdumpedorsubsidized importsfromcountriesnot
1membersoftheCommunity,andinparticularArticles12and16(1)thereof,
HavingregardtotheSupplementary ProtocoltotheAgreementestablishing
anAssociation betweentheEuropeanEconomicCommunity andTurkey,andin
2particular Article47(2),
HavingregardtotheproposalmadebytheCommissionafterhearingthe
opinionsexpressed bytheAdvisoryCommitteesetupundertheabove-
mentionedRegulation (EEC)N°3017/79;
WhereastheCommission received acomplaintlodgedbyEurocoton onbehalf
ofthegreatmajorityofCommunitymanufacturers ofcottonyarn;whereas
thecomplaintcontainedsufficientevidenceoftheexistenceofdumping
inrespectoflikeproductsoriginating inTurkeyandofsubstantial
injuryresultingtherefrom;
WhereastheCommissionaccordingly announced,byanoticepublishedinthe
OfficialJournaloftheEuropeanCommunities^,theinitiationofaproceeding
ii
concerningimportsofcertaincottonyarnsoriginating inTurkeyand
commenced aninvestigation ofthematteratCommunitylevel;
10JN°L339,31.12.1979,p.1
20JN°L293,29.12.1972,p.4
30JN°C196,03.08.1979,p.2

Whereas,inordertoarriveatapreliminary assessmentofthedumping
marginandinjury,theCommissioncarriedoutinspections atthepremises
ofthreeexportfirms,namelyCukurovaSanayiIsl.AS(Tarsus),TarisPam.
Tar.Sat.Koop.BirligiIplikFab.(Izmir)andTrakyaIplikSanayiAS
(Istanbul);whereasthesefirmswerechosenasbeingrepresentative by
agreementwiththeTurkishassociations ofexportersoftheproducts
concerned andthecomplainants ;
Whereas,sincethepreliminary examination ofthemattershowedthat
therewasdumping,thattherewassufficient evidenceofinjury,andthat
theinterestsoftheCommunitycalledforimmediateintervention ,the
1Commission byRegulation (EEC)N°3453/81imposedaprovisional anti-
dumpingdutyof16%oncertaincottonyarnsoriginating inTurkey;
Whereas,inthecourseofthesubsequent examination ofthematter;completed
aftertheimpositionoftheprovisional anti-dumping duty,theinterested
partieshadtheopportunity tomakeknowntheirviewsinwriting,tobe
heardbytheCommission andtodeveloptheirviewsorally,toinspect
non-confidential information relevanttothedefenceoftheirinterests
andtobeinformedoftheessentialfactsandconsiderations onthebasis
ofwhichitwasintendedtomakeafinaldetermination ;whereasanumber
ofproducers,importers andusersavailedthemselvesofthesepossibilities
bymakingknowntheirviewsinwritingororally;
WhereastheCommission hasupdatedtheresultsoftheprovisional
determination basedonthethreefirmsmentioned aboveandhascarriedout
asupplementary investigation inTurkeyonexportsmadeinthefinalquarter
of1981;whereasthisextensionoftheperiodofinvestigation wasmade
attherequestoftheTurkishexporters;whereasdespitethecontestations
receivedfollowingtheimpositionoftheprovisional dutytheCommission
maintainsitsopinionwithregardtotherepresentativity ofthesampleof
theexporters chosen,foritcontainsthelargestTurkishexporters endboth
publicandprivatefirms,locatedinthethreeproducingregionsofthese
«
products;
OJN°L347,D3.13.1981,p.19

-3-
Whereas,inordertoestablishadefinitivedetermination astowhether
theaboveimportsweredumpedtheCommission hadtotakeintoaccountthe
factthatsalesofsimilarproductsbytheabove-mentioned threefirms
ontheTurkishdomesticmarketdidnotprovideavalidcomparison,since
thevolumeofthesesaleswassolow;
Whereas,forthatreason,theCommissionbaseditscalculations onthe
constructedvalue,namelythecostsofmaterialandmanufacturing inthe
ordinarycourseoftradeinTurkey,togetherwithareasonablemarginfor
profitandoverheads;whereasinthelightofthefinancialresultsof
theexporters -visited,areasonableprofitmarginwasfixedat5%;
Whereas,however,anadjustment wasmadeto.thecostssubmittedtothe
Commission byTrakyaIplikSanayi(AS)inrespectoftheperiod1January-
30September1981;whereastheadjustmentconsistedinaddingtothose
coststhesalesandfinancialexpensesofthesubsidiary companyresponsible
formarketingcertainexports,whichtheexporterhadnottakeninto
accountinhissubmission;whereastheexporterhastakenintoaccount
thesecostsinhissubmission madeinrespectofthefinalquarterof1981
andthereforenoadjustment wasmadeforthatperiod;
Whereas,inaddition,followinganunderestimate by
CukurovaSanayiIsl.ASofitsoverheads,thelatter
havebeenreassessedonthebasisofinformation
suppliedbythecompanyregardingthetotalamount
ofitsexportsandtheoverheadsattributabletothose
exports;
Whereas,ontheotherhand,TarisPam.Tar1.Sat.
Koop.BirligiIplikFab.didnotallowtheCommis­
siontocheckorsupplementtheinformationprovided
regardingitsproductioncosts;whereas,accordingly,
theCommission hadtodeterminethenormalvalue
inrelationtothecompany'sexportsonthebasisof
thebestinformationavailable,inthiscasethedata
obtainedfromtheotherTurkishproducersinvesti­
gated;;
r[,

4
Whereasthedefinitivedetermination ofdumpingwasmadeincomparing,
transaction bytransaction onaFOBbasis,thisconstructedvaluefor
salesmadefrom1Januaryto31December1981withtheexportprices
totheCommunityinthesameperiod;
Whereastheaboveexamination ofthefactsshowsthatdumpingexistsin
respectoftheimportsconsideredintheinvestigation ,thedumpingmargins
varyingbytypeofyarn;whereastheweightedaveragedumpingmargin
marginforthesamereferenceperiodisequalto15.1%forCukurova
SanayiIsl.AS,13.1%forTrakyaIplikSanayiASand12.1%forTarisPam.
Tar.Sat.Koop,.BirligiIplikFab.;
Whereas,withregardtotheinjurycausedtotheCommunityindustry,
theevidenceavailabletotheCommission showsthattheimportsofthe
cottonyarninquestion,originating inTurkey,afterfallingfrom
71000tonnesin1978toapproximately 54000tonnesin1980haverisen
to82000tonnesin-1981;
\
WhereastheseimportshaveobtainedamarketshareintheCommunityof9.1%in
1978and6.6%in1980;•whereastheirshareisestimatedat10.8%in1981;
WhereasaccordingtotheinformationgatheredbytheCommissiontheprices
ofimportsintotheCommunityofcottonyarnoriginating inTurkey
considerably undercutthepricesoflikeproductsproducedbyCommunity
manufacturers,thisundercutting reaching25%insomecases;
WhereastheconsequentimpactontheCommunityindustry,whosevolume
ofproductiondroppedfrom613000tonnesinT977to557000tonnes
in1981,takestheformofadepressionofCommunitypricesinreal
termsformanyproducers*makingitimpossibletocoverproductioncosts;
WhereasinadditiontheCommunityindustryischaracterized byagrowing,
reductionintheutilization ofcapacitieswhichatpresentislessthan
65%inseveralMemberStates; .

WhereasmostoftheCommunityfirmsareconsequently makingconsiderable
lossesonthecottonyarncoveredbytheproceedingandthishasput
atrisktheprofitability oftheindustryasawholeandhasalready
ledtoanappreciablefallinthenumbersdirectlyemployedinthe
manufacture ofthoseproductsfrom100000in1979to92000in1980
andtolessthan84000in1981;
WhereastheCommissionhasconsideredwhetherthereisinjurycausedby
otherfactorswhich,individually orincombination,arealsoadversely
affectingtheCommunityindustry;whereastheCommissionhasexamined,
inparticularinthiscontext,theconditionsunderwhichotherimports
aremade,thelevelofdemandforcottonyarnintheCommunityandthe
competition amongCommunityproducers;whereasthevolumeof otherimports
increasedslightlybetween1979and1980butdeclinedslightlyin1981;
whereas,moreover,mostoftheseimportsarecoveredbyquantity'
restrictions ;whereas,accordingtotheinformationreceivedbythe
Commission,thelevelofCommunitydemandforcottonyarn,afterincreasing
in1979,hasdecreasedslightlysince1980;whereasduringthesameperiod
thenumberofCommunityproducershasdeclinedandthemarketsharesof
thirdcountriesotherthanTurkeyhasremainedrelativelystable;
t
Whereasinthesecircumstances theinjuriouseffectsattributable solely
todumpingfromTurkeymustbeconsideredasmaterialinjury;
Whereasfollowingtheimpositionoftheprovisionalanti-dumping duty,
theCommissionreceivednumerousrepresentations arguingthatthese
measureswereharmfultotheinterestsoftheimportersaswellasthose.
oftheprocessingindustryandwerethereforenotintheCommunityinterest
whereascounter-arguments werealsoreceivedfromtheCommunityproducers;

whereastherepresentative associations forthewholeindustry,which
includemembersfromboththespinningandtheweavingindustries,have
pronounced infavouroftheelimination ofdumpingpractices andthe
injuryresultingtherefrom;whereastheCommission,afterexaminingall
theargumentsputforwardbytheparties,considersthat,takinginto
accountthe.extentofthedumpingmargin,oftheinjuryresultingimportance OTthe
therefrom andofthe/industrialsectorconcerned,theinterestsofthe
Communityrequireontheonehand,theimpositionofadefinitiveanti-
dumpingdutyonimportsofcertaincottonyarnsoriginating inTurkey
andontheotherhandthedefinitivecollection,limitedtotheamount
ofthedefinitive duty,oftheamountssecuredbywayofprovisional duty
Whereasinordertodeterminetheamountofthisduty,theCommission
hasexaminedthedumpingmargins,aswellastheextentoftheinjury
caused;whereasfortechnicalreasonstheCommission hasconcludedthat
thisdutymustcorrespondtothelowestofdumpingmarginsestablished,
thatis,12%,
HASADOPTEDTHISREGULATION :
Article 1
1.Adefinitive anti-dumping dutyisherebyimposedonimportsofcotton
yarns fallingwithinsubheading 55.05Bofthe
CommonCustomsTariffandcorresponding toNimexecodes55.05-21to
55.05-98inclusive,originating inTurkey.
2.Therateoftheanti-dumping dutyshallbe12%onthebasisof.the
customsvaluedeterminedinaccordancewithCouncilRegulation (EEC)
1
N°1224/80of28May1980onthevaluationofgoodsforcustomspurposes
0JN°L134,31.0j.1980,p.1

3.Theprovisionsinforceconcerning customsdutiesshallapplyto
thisduty. <
Article 2
Theamountssecuredbywayofprovisional dutypursuanttoRegulation
(EEC)N°3453/81shallbedefinitively collected uptotheamountof
thedefinitive duty,thatis,75%oftheamountoftheprovisional
duty.Thebalanceofthesesums,thatis,25%oftheamountofthe
provisional duty,isreleased.
Article3
ThisRegulationshallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropeanCommunities .
I
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, FortheCounciI.