it it COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 21.10 1996 
COM(96) 523 final 
Proposal for a 
COUNCIL REGULATION (EC) 
IMPOSING DEFINITIVE ANTI­
DUMPING DUTIES ON IMPORTS OF POLYESTER TEXTURED FILAMENT YARN 
ORIGINATING IN INDONESIA AND THAILAND, TERMINATING THE 
PROCEEDING CONCERNING IMPORTS OF POLYESTER TEXTURED FILAMENT 
YARN ORIGINATING IN INDIA, AND COLLECTING DEFINITIVELY THE 
PROVISIONAL DUTIES IMPOSED 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. In May 1996, by Regulation (EC) N° 940/96, the Commission imposed a 
provisional anti-dumping duty on imports of polyester textured filament yarn 
(PTY) originating in Indonesia and Thailand, and concluded provisionally that, 
due to its negligible market share, no measures should be imposed on imports of 
the same product originating in India. 
2. By Regulation (EC) N° 1370/96, the Council extended the validity of the 
provisional Regulation for a period of two months until 1 December 1996. 
3. Subsequent to the imposition of provisional anti-dumping duties, certain parties 
requested and were granted hearings, and presented written comments, which 
were taken into account where appropriate. 
4. The definitive determination confirmed the existence of dumping. Changes in the 
individual dumping margins compared to the provisional findings are due to the 
reassessment of certain adjustments. 
5. As to the conclusion of the Commission at the provisional stage of the 
investigation that the Community industry suffered material injury, and that this 
was caused by the surge of Indonesian and Thai dumped imports of PTY into the 
Community at low prices, which has had a particular destabilizing impact on the 
Community market by lowering the price level on that market and thus leading the 
Community industry to suffer losses in profitability, no further arguments were 
made. These findings needs therefore to be confirmed. 
^ 
6. Given the need to eliminate the trade-distorting effects of the injurious dumping 
found, and to restore effective competition, the fact that a continuation of low 
priced imports would jeopardize the adjustment efforts made by the Community 
industry, and would have a negative effect on the level of employment in the 
Community industry, and in view of the limited impact for consumers, it is 
considered in the Community interest that definitive duties should be imposed. 
7. In these circumstances, and in accordance with the "lesser duty rule", the level at 
which definitive measures should be set was determined by the dumping margins 
definitively established, which were lower than the injury elimination margins. 
8. It is therefore proposed that the Council adopts the draft Regulation annexed, 
imposing a definitive anti-dumping duty on imports into the Community of 
polyester textured filament yarn originating in Indonesia and Thailand, terminating 
the proceeding as far as India is concerned, and collecting definitively the amounts 
secured by way of the provisional duty. 
^t ^ 
Proposal for a 
COUNCIL REGULATION (EC) N° /96 IMPOSING DEFINITIVE ANTI­
DUMPING DUTIES ON IMPORTS OF POLYESTER TEXTURED FILAMENT YARN 
ORIGINATING IN INDONESIA AND THAILAND, TERMINATING THE 
PROCEEDING CONCERNING IMPORTS OF POLYESTER TEXTURED FILAMENT 
YARN ORIGINATING IN INDIA, AND COLLECTING DEFINITIVELY THE 
PROVISIONAL DUTIES IMPOSED 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EC) N° 384/96 of 22 December 1995 on protection 
against dumped imports from countries not members of the European Community1, and 
in particular Article 23 thereof, 
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 Community2, and in particular Article 12 thereof, 
Having regard to the proposal submitted by the Commission after consulting the 
Advisory Committee, 
WHEREAS: 
'OJWLSÔ, 06.03.1996, p. 1. 
2 OJ N° L 209,02.08.1988, p.l. Regulation as last amended by Regulation (EC) N° 522/94 (OJ N° L 
66, 10.03.1994, p.10). 4 6-
A. PROVISIONAL MEASURES 
(1) The Commission, by Regulation (EC) N° 940/963 (hereafter referred to as the 
"provisional Regulation") imposed provisional anti-dumping duties on imports of 
polyester textured filament yarn (hereafter referred to as "PTY" or "product 
concerned"), originating in Indonesia and Thailand, and falling within CN codes 
5402 33 10 and 5402 33 90. 
(2) With the same Regulation, it was provisionally concluded that imports of the 
product concerned originating in India, essentially due to their negligible import 
volume, did not have contributed to the material injury suffered by the Community 
industry, and therefore it was considered unnecessary to impose provisional 
protective measures onto these imports at that stage of the investigation. 
(3) By Council Regulation (EC) N° 1370/964, the provisional duties were extended for 
a period of two months, up to 1 December 1996. 
B. SUBSEQUENT PROCEDURE 
(4) The provisional duty Regulation set up a time limit, within which the parties 
concerned could make known their views in writing and apply to be heard orally by 
the Commission. 
3 OJ N° L 128, 29.05.1996, p.3 ff. 
4 OJN°L 178, 17.07.1996, p.l. 
<^ 
(5) Immediately after the imposition of the provisional measures on imports of PTY 
from Indonesia and Thailand, the interested parties were informed of the essential 
facts and considerations on the basis of which provisional measures had been 
adopted. 
Comments thereupon were received in writing from the following interested parties 
within the time limit set: 
L Producers in Indonesia: 
P.T. Panasia Indosyntec (formerly: P.T. Hadtex Indosyntec) 
P.T. Indo Rama Synthetics 
P.T. Polysindo Eka Perkasa 
P.T. Susilia Indah Synthetic Fibres Industries 
P.T. Vastex Prima Industries 
2. Producers in Thailand: 
Sunflag (Thailand) Ltd. 
Tuntex (Thailand) PCL. 
(6) Parties, who so requested, were also granted an opportunity to be heard orally by 
the Commission services. 
(7) Parties were informed of the essential facts and consideration on the basis of which 
it is intended to recommend the imposition of definitive measures and the definitive 
collection of amounts secured by way of provisional duties. They also were granted 
a period within which they could make representations subsequent to this 
disclosure. 
(8) The parties' oral and written comments were considered, and where appropriate, the 
provisional determinations were modified to take account of these comments. 
C. PRODUCT AND LIKE PRODUCT 
(9) The product under consideration is PTY, directly derived from polyester oriented 
yarn ("POY"). PTY is used in both the weaving and the knitting sectors to make 
polyester or polyester/cotton fabrics. 
It was concluded at the provisional stage of the investigation that PTY sold on the 
domestic markets of India, Indonesia and Thailand has similar basic characteristics 
and uses compared to that exported from those countries to the Community. 
Similarly, the PTY manufactured by the Community industry and sold on the 
Community market has similar basic characteristics and uses when compared to 
that exported to the Community from the countries in question. 
(10) Since no new arguments were made by any of the parties concerned on the 
Commission's provisional findings on the product under consideration and the 
considerations made on like product, the facts and findings as set out in recital (9) 
and (10) of the provisional Regulation, are confirmed by the Council. 
D. DUMPING 
1. India 
(11) It was provisionally established by the Commission that the Indian exporters who 
cooperated in the proceeding, had exported PTY to the Community during the 
investigation period at dumped prices, individual dumping margins ranging from 
0.3% to 42.9%. 
(12) Since no new arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on normal value, export price, comparison 
and hence the dumping margins provisionally established for exports to the 
Community of PTY originating in India, the facts and findings as set out in recitals 
(12) to (18) and (29) to (35) of the provisional Regulation are confirmed by the 
Council, as far as India is concerned. 
2. Indonesia 
Normal value 
( 13) The Indonesian exporters argued that, when comparing their costs of production to 
the corresponding domestic selling prices in order to assess whether domestic sales 
were made in the ordinary course of trade within the meaning of Article 2(4) of the 
basic Regulation, certain directly related selling expenses such as inland freight and 
packing had been included in the costs whereas they had been deducted from the 
domestic prices. 
After verifying additional data submitted in that respect by the companies 
concerned and retracing the individual claims to the audited accounts of the 
companies, the provisional calculations on normal values, where warranted, were 
duly revised. 
(14) The production of PTY of first quality, which was the only exported by the 
Indonesian producers concerned to the Community, implies the manufacturing of 
PTY of inferior quality, so called substandard PTY. However, the Indonesian 
producers did not keep separate accounting data for each quality and, therefore, the 
costs associated with the first quality exported to the Community were not 
reasonably reflected in the producers' records. 
At the provisional stage of the investigation, and in order to establish the cost of 
production of first quality PTY, the Commission estimated the cost of production 
of the substandard PTY by reference to the average variable manufacturing costs 
associated with the overall production of PTY only. This approach was considered 
reasonable, in particular given the relatively limited production of substandard PTY 
and its inevitable linkage with the production of first quality PTY. Furthermore, the 
allocation of the full cost of production on the basis of turnover did not appear to be 
an appropriate method, as not all the elements in the cost of production appeared to 
be associated with the production and sale of substandard PTY. 
One Indonesian producer asked the Commission to reconsider the possibility to 
accept the cost allocation method leading to the costs reported in the reply to the 
Commission's questionnaire, and which has been historically utilized by the 
exporter concerned. 
Following this request, the Commission reviewed its provisional findings, and 
considered acceptable the allocation method in question though only to the extent 
that it reasonably reflected the costs associated with the production and sale of both 
qualities of PTY. This approach was extended to all Indonesian producers, since 
they all replied to the Commission's questionnaire using the same allocation 
method. 
(15) Upon the request of the Indonesian producers, the Commission revised its 
provisional findings as regards the amount of financial expenses, as well as the 
criteria for the allocation of the net financial costs to the product concerned. 
In this respect it was considered appropriate to offset against financial expenses 
only financial income, which showed a clear link with the production and sale of 
PTY. Furthermore, the allocation of net financial expenditure, which at the 
provisional stage of the proceeding had been made by reference to turnover, was 
modified to take separate account of products manufactured or merely traded. 
(16) Since no further arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on normal value for Indonesia, the facts and 
findings as set out in recitals (19) to (23) of the provisional duty Regulation are 
confirmed by the Council, considering also the revisions made under recitals (13) 
and (14) above. 
Export prices 
(17) Two of the Indonesian producers sold PTY for export to the Community through 
two related trading companies located in Singapore. In the provisional 
determinations, the export prices were established by reference to the prices 
actually paid or payable for the products concerned when sold for export to the 
Community by the related trading companies in Singapore, since the prices charged 
by the Indonesian producers to the related Singaporean traders were considered as 
being influenced by this relationship, and thus not being reliable. 
To establish a reliable export price to the Community from Indonesia, the prices 
charged from Singapore were adjusted to an ex-Indonesia level by deducting from 
the prices charged by the related companies in Singapore to the independent 
customers in the Community an average amount of 4% of these prices, which was 
calculated by reference to the selling, general and administrative expenses incurred 
by the related companies in respect of the sales under consideration. 
This approach was contested by the two Indonesian producers concerned, arguing 
that the said adjustment was too high. Alternatively, these producers proposed their 
own calculation method by singling out only some allegedly directly related selling 
expenses, thus ignoring the vast majority of all other expenses incurred by the 
related trading companies in Singapore. 
The Council, however, confirms the provisional approach taken by the 
Commission, considering the degree of involvement of the related traders in the 
selling activities of the Indonesian producers. Furthermore, on the basis of the 
accounting data of the related traders, no additional information was provided by 
the latter, which would indicate that the adjustment applied was inappropriate. 
(18) Since no further arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on export prices for exports to the 
Community of PTY originating in Indonesia, the facts and findings as set out in 
recital (29) of the provisional Regulation are confirmed by the Council as far as 
Indonesia is concerned. 
Comparison 
(19) Since no new arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on the comparison made between normal 
value and export prices, the facts and findings as set out in recitals (31) and (32) of 
the provisional Regulation are confirmed by the Council as far as Indonesia is 
concerned. 
Dumping margins 
(20) Taking into account the above mentioned revisions, the Council confirms, in 
applying the same methodology as used for the provisional assessment (see recital 
(34) of the provisional Regulation), the definitive dumping margins for the 
cooperating Indonesian exporters concerned as follows: 
P.T. Indo Rama Synthetics 1.7 % 
P.T. Panasia Indosyntec (formerly: P.T. Hadtex Indosyntec) 5.4 % 
P.T. Polysindo Eka Perkasa 8.8 % 
P.T. Susilia Indah Synthetic Fibres Industries 8.3 % 
P.T. Vastex Prima Industries 20.2 % 
(21) Confirming the method chosen for the provisional assessment (see recital (35) of 
the provisional Regulation), the Council considered that the dumping margin for 
non-cooperating producers in Indonesia should be based on facts available and 
verified during the investigation. On that basis it is considered that the highest 
definitive dumping margin, i.e. 20.2%, found with regard to a producer in Indonesia 
which had cooperated in the investigation, should also apply to non-cooperating 
producers in this country. 
3. Thailand 
Normal value 
(22) One Thai producer realized that the costs data, which it had submitted, contained an 
arithmetical material error. Indeed, in allocating the costs for two raw materials 
produced by this company and used both in the production of PTY and in other 
polyester end-products, the company erroneously added to the PTY cost of 
production the total transformation costs of the aforementioned two raw materials, 
instead of considering the appropriate proportion for PTY only. 
After verifying the revised additional data submitted in that respect by the company 
concerned, the Commission duly revised the normal value where warranted. 
(23) One Thai producer argued that its costs during the investigation period were 
affected by the use of new production facilities, and certain cost items should 
therefore be adjusted accordingly. 
The Commission could not share this approach since no adjustment had been 
claimed in the company's reply to the questionnaire or prior to the verification visit. 
Furthermore, the capacity utilization rates as well as the production costs of the 
company during the investigation period, which commenced eight months after the 
start-up of the production, appeared reasonable and in line with those incurred by 
most of the other PTY producers. The claim was therefore disregarded by the 
Commission. 
(24) One Thai producer argued that its depreciation rate of 10% on machinery, as 
reflected in its costs, was too high as compared to other Thai producers, and that its 
costs should therefore be adjusted accordingly by using a 5 % rate. 
10 
To apply a straight depreciation rate of 10% on machinery is not uncommon. 
Furthermore, this rate is reflected in the accounting records of the company. The 
claim was therefore disregarded by the Commission. 
(25) Since no further arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on normal value for Thailand, the facts and 
findings as set out in recitals (24) to (28) of the provisional Regulation are 
confirmed by the Council, considering also the revision made under recital (22) 
above. 
Export prices 
(26) Since no new arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on export prices for exports to the 
Community of PTY originating in Thailand, the facts and findings as set out in 
recital (29) of the provisional Regulation are confirmed by the Council. 
Comparison 
(27) One Thai producer argued that the normal credit rates applicable in respect to the 
currency expressed on the export invoice should be corrected. 
After verifying the additional data submitted the Commission duly revised, where 
warranted, the allowance for credit costs granted for the sales under consideration. 
(28) Since no further arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on the comparison made between normal 
value and export prices, the facts and findings as set out in recitals (31) to (33) of 
the provisional Regulation are confirmed by the Council, with the exception of the 
revision under recital (27) above and as far as Thailand is concerned. 
11 
Dumping marzins 
(29) Taking into account the above mentioned revisions, the Council confirms, in 
applying the same methodology as used for the provisional assessment (see recital 
(34) of the provisional Regulation), the definitive dumping margins for the 
cooperating Thai exporters concerned as follows: 
Tuntex (Thailand) PCL. 6.7 % 
Sunflag (Thailand) Ltd. 13.5 % 
Chareonsawatt Stretched Yarn Co. Ltd. 20.2% 
(30) Confirming the method chosen for the provisional assessment (see recital (35) of 
the provisional Regulation), the Council considered that the dumping margin for 
non-cooperating producers in Thailand should be based on facts available and 
verified during the investigation. On that basis it is considered that the highest 
definitive dumping margin, i.e. 20,2%, found with regard to a producer in Thailand 
which had cooperated in the investigation, should also apply to non-cooperating 
producers in this country. 
E. COMMUNITY INDUSTRY 
(31) In the absence of new evidence or any further substantiated argument made by any 
of the parties concerned, the facts and findings set out in recitals (36) to (39) of the 
provisional Regulation are confirmed by the Council, i.e. the complainant 
Community producers representing more than 50% of the Community output of 
PTY constitute the Community industry, in accordance with Article 4 (5) of the 
basic Regulation. 
12 
F. INJURY 
(32) As mentioned under recital (20) above, the individual definitive dumping margin 
established for one of the Indonesian exporters is de minimis. Whether, under these 
conditions, the imports in question should be excluded from the injury assessment, 
does not need to be decided in the present case. 
Indeed, even if these producers' imports were excluded from the injury assessment, 
the volume and the Community market share of the remaining dumped imports 
from Indonesia were still significant enough to justify the Commission's provisional 
conclusions in this respect. 
(33) Since no new arguments were made by any of the parties concerned as to the 
provisional findings concerning the injury suffered by the Community industry, the 
Council confirms those findings as established in recitals (40) to (55) of the 
provisional Regulation, i.e. the exclusion of imports of PTY originating in India 
from the injury assessment due to its negligible market share, as well as the 
precarious situation of the Community industry, in particular the deterioration of its 
financial results, the decline in production, capacity utilization and market share, 
notwithstanding a certain increase in the Community consumption of PTY, which 
demonstrates that this industry has suffered material injury within the meaning of 
Article 4 (1) of the basic Regulation. 
G. CAUSATION OF INJURY 
(34) It was provisionally concluded that, notwithstanding the fact that imports from 
other third countries might have contributed to the injury suffered by the 
Community industry, the surge of Indonesian and Thai dumped imports of PTY 
into the Community at low prices has had a particular destabilizing impact on the 
Community market by lowering the price level on that market, and has led the 
Community industry to suffer a loss of profitability, thus causing material injury to 
this industry. 
13 
(35) Since no new arguments were made by any of the parties concerned as to the 
Commission's provisional conclusions on causation of injury, the facts and findings 
as set out in recital (56) to (81) of the provisional Regulation are confirmed by the 
Council. 
H. COMMUNITY INTEREST 
(36) The Commission concluded at the provisional stage of the investigation that, after 
examining the various interests involved, it is in the Community interest to prevent 
a further decline in the already precarious situation of the Community industry, and 
to re-establish with the imposition of remedial measures a fair and competitive 
economical environment in the Community market. Furthermore it was considered 
necessary to ensure a non-discriminatory treatment with regard to imports of PTY 
originating in Indonesia and Thailand as compared to imports of PTY originating in 
other third countries presently subject to anti-dumping measures. 
(37) On this basis, the Council confirms, as set out in recitals (82) to (93) of the 
provisional Regulation, that the Community interest calls for the imposition of 
definitive anti-dumping measures on imports of PTY originating in Indonesia and 
Thailand. 
I. DEFINITIVE DUTY 
India 
(38) Given the above confirmed provisional conclusions with regard to exports of PTY 
to the Community originating in India (insignificant market share), the Council 
confirms that no definitive anti-dumping duty should be imposed and the 
proceeding be terminated in respect of this country. 
14 
Indonesia and Thailand 
(39) For the purpose of establishing the level of the definitive measures to be imposed, 
and in line with the same methodology applied at the provisional stage of the 
investigation, the Council took account of the dumping margins found and the level 
of duty necessary to eliminate the injury sustained by the Community industry. 
(40) It is confirmed at this definitive stage that for all Indonesian and Thai exporters 
concerned the level of the injury margins were higher than the dumping margins 
found, both being expressed as a percentage of the CIF Community frontier price. 
Consequently, in accordance with Article 13 (3) of the basic Regulation, it is 
confirmed that the level of the duty should be based on the level of the dumping 
margins definitively established. 
(41) With regard to the Indonesian company P.T. Indo Rama Synthetics, the Council 
confirms, considering that the individual definitive dumping margin established is 
de minimis, that the investigation be terminated without measures although the 
company shall remain subject to the proceeding and may be reinvestigated in any 
subsequent review carried out for Indonesia. 
J. COLLECTION OF THE PROVISIONAL DUTY 
(42) In view of the dumping margins definitively established and the substantial injury 
caused to the Community industry, the Council considers that the amounts secured 
by way of the provisional anti-dumping duties should be definitively collected at 
the level of the amounts of duties definitively imposed. 
HAS ADOPTED THIS REGULATION: 
15 
Article I 
1. A definitive anti-dumping duty is hereby imposed on imports of polyester textured 
filament yarn, falling within CN code 5402 33 10 and 5402 33 90 and originating in 
Indonesia and Thailand. 
2. The rate of the definitive anti-dumping duty applicable to the net, free-at-
Community-frontier price, before duty, shall be as follows: 
Indonesia Duty Taric additional Code 
P.T. Panasia Indosyntec 
(formerly: P.T. Hadtex Indosyntec) 5.4 % 8884 
P.T. Polysindo Eka Perkasa 8.8 % 8886 
P.T. Susilia Indah Synthetic Fibres Industries 8.3 % 8887 
Others 20.2% 8888 
The duties shall not apply to imports of the products specified in paragraph 1, 
which are produced and exported by the Indonesian company P.T. Indo Rama 
Synthetics (Taric additional Code 8885). 
Thailand Duty Taric additional Code 
Tuntex (Thailand) PCL. 6.7 % 8889 
Sunflag (Thailand) Ltd. 13.5% 8907 
Others 20.2%. 8891 
3. No anti-dumping duty shall be applicable to imports of the product specified in 
paragraph 1 and originating in India. The proceeding concerning imports of the 
product originating in India shall be terminated. 
4. Unless otherwise specified, the provisions in force concerning customs duties shall 
apply. 
16 
Article 2 
1. The amounts secured by way of the provisional anti-dumping duties under 
Regulation (EC) N° 940/96 shall be definitively collected at the rate of the duties 
definitively imposed. Amounts secured in excess of the definitive rate of anti­
dumping duties shall be released. 
2. The provisions of Article 1 (4) shall also apply to the definitive collection of the 
amounts secured by way of the provisional anti-dumping duties. 
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, 
The Council 
17 
ISSN 0254-1475 
COM(96) 523 final 
DOCUMENTS 
EN 02 il 
Catalogue number : CB-CO-96-528-EN-C 
ISBN 92-78-10422-1 
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