COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 11.06.1996 
COM(96) 228 final 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 3905/88 as regards definitive anti-dumping duties 
on imports of polyester yarn originating in Taiwan and Turkey 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
In December 1988, by Regulation (EEC) No 3905/88, the Council imposed a definitive 
anti-dumping duty on imports of polyester yarn originating in the Republic of Korea. 
Mexico, Taiwan and Turkey. 
In October 1991, the Council amended, by Regulation (EEC) No 2899/91, the 
abovementioned Regulation and repealed the definitive anti-dumping duty imposed on 
imports into the Community of polyester yarn originating in Mexico. 
In June 1994, following a request for a review, which was lodged by the 
International Rayon and Synthetic Fibres Committee (CIRFS), representing the majority 
of Community polyester yarn producers, the Commission announced, with a notice 
published in the Official Journal of the European Communities, the initiation of a review 
of Council Regulation (EEC) No 3905/88 concerning imports of polyester yarn from 
Turkey and Taiwan, pursuant to Article 15 of Regulation (EEC) No 2423/88, the 
regulation applicable in this review pursuant to Article 23 of Regulation (EC) 
No 384/96. Imports from the Republic of Korea were excluded from the review of the 
measures, which consequently lapsed.. 
The investigation covered two products: partially oriented polyester yarn (POY) and 
polyester textured filament yarn (PTY). 
(a) The investigation on POY showed that imports from Taiwan had remained at a 
negligible de minimis level, though no measures were applicable for the 
three major Taiwanese producers and exporters Consequently, there is no 
reasonable indication that the expiry of the anti-dumping measures on imports of 
POY originating in Taiwan would lead to a recurrence of injury or threat of injury 
to the Community industry'; the measures in force should therefore be repealed 
However, for Turkey, substantially increased imports of POY at consistently low 
prices during the investigation period, as well as the simultaneous decline in the 
Community industry's performance, leads to the conclusion that the expiry of the 
measures could only worsen the situation of the Community industry through a 
recurrence of injury. Therefore, the measures in force for imports of POY 
originating in Turkey had to be maintained and, in the light of the findings on 
dumping in the current investigation, to be duly adjusted 
(b) As far as imports of PTY originating in Taiwan and Turkey were concerned, it 
was found that although the anti-dumping measures in force have had a somewhat 
positive effect in terms of the volume of the Turkish and Taiwanese imports, they 
did not prevent the pressure on Community prices from continuing Therefore, 
even if imports from other third countries subject to anti-dumping investigations 
may have had some injurious effect on the situation of the Community industry, 
the fact remains that, taken in isolation, the dumped imports from Taiwan and 
Turkey, notwithstanding the existence of protective measures, have continued to 
materially contribute to the precarious situation of the Community industry, and 
that in these circumstances, to allow the measures to expire is likely to further 
weaken the Community industry through a recurrence of injury to this industry. 
Hence, the measures in force for imports of PTY originating in Taiwan and 
Turkey had to be maintained and, in the light of the findings on dumping in the 
current investigation, to be adjusted. 
5. It is therefore proposed that the Council adopts the Regulation annexed, amending 
Council Regulation (EEC) No 3905/88 as last amended by Council Regulation (EEC) 
No 2899/91, imposing definitive anti-dumping duties on imports of polyester yarn 
originating in the Republic of Korea, Taiwan and Turkey. 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 3905/88 as regards definitive anti-dumping duties 
on imports of polyester yarn originating in Taiwan and Turkey 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection 
against dumped imports from countries not members of the European Community(1), and in 
particular Article 23 thereof, 
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(2), as last amended by Regulation (EC) No 522/94(3) and in 
particular Article 15 thereof, 
Having regard to the proposal submitted by the Commission after consulting 
the Advisory Committee, 
Whereas: 
A. PREVIOUS PROCEDURE 
(1) In December 1988, by Regulation (EEC) No 3905/88(4), the Council imposed a 
definitive anti-dumping duty on imports of polyester yarn originating in the 
Republic of Korea, Mexico, Taiwan and Turkey. 
(2) On 1 October 1991, the Council adopted Regulation (EEC) No 2899/91(5), amending 
the abovementioned Regulation and repealing the definitive anti-dumping duty 
imposed on imports into the Community of polyester yarn originating in Mexico. 
B. REVIEW PROCEDURE 
(3) Following the publication in June 1993 of a notice(6) of the impending expiry of the 
measures in force, the Commission received a request for a review lodged by the 
International Rayon and Synthetic Fibres Committee (CIRFS) representing the 
producers of allegedly 85% of Community polyester yarn output. 
(i) 
(2) 
(3) 
(4) 
(5) 
(6) OJNoL 56, 6.3.1996, p. 1. 
OJNoL 209, 2.8.1988, p. 1. 
OJNoL 66, 10.3.1994, p. 10. 
OJ No L 347, 16.12.1988, p. 10. 
OJNoL 275, 2.10.1991, p. 21. 
OJNoC 175, 26.6.1993, p. 9. 
In December 1993, a notice of intention to carry out a review of the anti-dumping 
measures in force on imports of polyester yarn originating in the Republic of Korea, 
Taiwan and Turkey was published'7'. 
(1) On 16 June 1994, in a notice(X), the Commission announced the review of 
Regulation (EEC) No 3905/88, pursuant to Article 15 of Regulation (EEC) 
No 2423/88, being the Regulation applicable in this review pursuant to Article 23 of 
Regulation (EC) No 384/96, and hereinafter referred to as "the Basic Regulation". 
Given the virtual absence of Korean imports on the Community market, it had not 
been shown in the view of the Commission that the expiry of the measures would 
have led to a recurrence of injury. It was therefore decided to exclude from the 
review the measures concerning imports originating in the Republic of Korea, which 
consequently lapsed<9). 
(5) The Commission officially advised the producers, exporters and importers known to 
be concerned, the representatives of the exporting countries and the complainant, and 
gave the parties directly concerned the opportunity to make their views known in 
writing and to request a hearing. It also sent questionnaires to all parties known to 
be concerned. 
(6) All complainant producers and another producer in the Community replied to the 
questionnaire and made their views known in writing. 
(7) Some Turkish and Taiwanese exporters replied to the questionnaire and made their 
views known in writing. 
No importer replied to the Commission's questionnaire. 
(8) The Commission sought and verified all information it deemed necessary for the 
purposes of a determination and carried out investigations at the premises of the 
following companies: 
(a) Community producers 
Rhône Poulenc, France 
Iloechst AG, Germany 
Nylstar, Germany 
Unifi, Ireland 
Montefibre Spa, Italy 
Akzo Fibres and Polymers Division, Netherlands 
La Seda de Barcelona S A, Spain 
Nurel S A, Spain 
Exsa, United Kingdom 
O.I No C 340, 17 12.1993, p. 15 
O.I No C 164, 16.6.1994, p 4 
O.I No C 165, 17.6.1994, p. 10. 
(b) Producers/exporters in the countries of origin 
Taiwan 
Chung Shing Textile Co. Ltd, Taipei 
Far Eastern Textiles Ltd, Taipei 
Hsin Pao Textile Co. Ltd, Taipei 
Lanfa Textile Co., Taipei 
Lea Lea Entreprise Co. Ltd, Taipei 
Nan Ya Plastics Corporation, Taipei 
Shingkong Synthetic Fibres Corp., Taipei 
Tuntex Distinct Corp., Taipei 
Zig Sheng Ind. Co. Ltd, Taipei 
Turkey 
Korteks-Mensucat Sanayi ve Ticaret A.S., Bursa 
Nergis-Tekstil Sanayi ve Ticaret A.S., Bursa 
Sasa-Artificial and Synthetic Fibres Inc., Adana 
Sifas-Sentetik Iplik Fabrikalari AS., Bursa 
(9) The investigation of dumping covered the period from 1 July 1993 to 30 June 1994 
(the "investigation period"). 
(10) All parties concerned were informed of the essential facts and considerations on the 
basis of which it was intended to recommend the amendment of existing definitive 
measures. They were also granted a period within which to make representations 
subsequent to these disclosures. 
(11) Because of the large number of interested parties, the volume of data gathered and 
analysed, and the complexity of certain issues, in particular the difficulties inherent 
in the fact that, as described in recitals (12) and (13), POY is a semi-finished product 
destined for the PTY production, the investigation has exceeded the normal period of 
one year as provided for in Article 7(9) of the Basic Regulation. 
C. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT 
1. DESCRIPTION OF THE PRODUCT CONCERNED 
(12) The products which are covered by the complaint and for which the review 
investigation was initiated are partially oriented polyester yarn (POY) falling within 
CN code 5402 42 00 and polyester textured filament yarn (PTY) falling within 
CN codes 5402 33 10 and 5402 33 90. They are identical to the products which were 
the subject of the previous investigation. 
POY is a feeder yarn used mainly to produce PTY, which is in turn used in both the 
weaving and knitting sectors to make polyester or polyester-and-cotton fabrics 
There are different types of POY as well as PTY, depending on the denier (weight), 
the number of filaments and the lustre. There are also different qualities, depending 
on the efficiency of the production process. 
(13) The original investigation was concluded by measures imposed by Regulation (EEC) 
No 3905/88, on POY and PTY separately. In this respect, the present investigation 
has confirmed that the essential process for obtaining PTY is texturization, consisting 
mainly of twisting and drawing POY, which imparts to PTY its essential 
characteristics. However, the necessity for and costs of further processing indicates 
that POY does not belong to the same category of product as PTY, since the 
added-value required to produce PTY from POY is substantial. In addition, the 
end-use of POY and PTY is different and the two products are not interchangeable. 
Consequently, different markets for each product exist. 
It is worth noting that the manufacturing processes described above can sometimes 
be integrated in one company or group, or can be undertaken by two independent 
companies. Both situations (integrated or independent manufacturing) exist in Taiwan 
and Turkey and in the Community. Part of the Community production of POY is sold 
on the Community market to independent texturizers (see recital (22)). 
(14) In view of the above, it has been concluded that POY and PTY do not belong to the 
same category of product and thus have to be regarded as two distinct products. 
These findings have not been contested by any interested party. Consequently, the 
two products have been dealt with separately in the framework of this review. 
II. LIKE PRODUCT 
POY 
(15) The investigation showed that POY products sold on the domestic markets of Turkey 
and Taiwan were "like products" relative to those exported from those countries to 
the Community. Similarly, the POY manufactured by the Community industry and 
sold on the Community market and those exported to the Community from the 
countries in question are alike in all respects as regards their physical, chemical and 
technical characteristics and end-uses. 
PTY 
(16) The same findings were made with regard to PTY respectively sold on the domestic 
markets of Turkey and Taiwan, produced and sold in the Community, and exported 
to the Community from the countries in question. 
(17) Consequently, in each case the products sold on the domestic market of the exporting 
countries, those exported from these countries to the Community and those produced 
and sold in the Community are "like products" within the meaning of Article 2(12) 
of the Basic Regulation. 
D. PARTIALLY ORIENTED POLYESTER YARN (POY) 
I. THE SCOPE OF THE REVIEW 
(18) In Regulation (EEC) No 3905/88, three Taiwanese producers, Far Eastern Textile Ltd, 
Nan Ya Plastics Corporation and Tuntex Distinct Corp., were not subject to the 
anti-dumping duty imposed on imports of POY from Taiwan. 
These Taiwanese exporters claimed that the present review investigation could not 
cover producers expressly exempted from the anti-dumping measures, because no 
dumping was found in their case, and that the absence of existing anti-dumping 
measures*led to the conclusion that there were no grounds for including them in 
its scope. 
(19) Since the review request was made under the provisions of Article 15 of the 
Basic Regulation, it has to be examined whether the expiry of the measures in force 
would lead again to injury. On this basis, and given that the three Taiwanese 
producers concerned were exempted from the measures on the grounds that no 
dumping had been found in their case, they should be kept outside the scope of this 
review investigation. 
(20) Consequently, this review does not cover imports of POY from Tuntex Distinct Corp., 
Far Eastern Textile Ltd, or Nan Ya Plastics Corporation. 
H. COMMUNITY INDUSTRY 
(21) In defining the Community industry, data obtained from information received in the 
replies to the questionnaires, from EUROSTAT figures and from CIRFS concerning 
output of Community-produced POY were used, since not all the producers active in 
the Community POY market cooperated in the investigation. 
(22) The complaining Community producers were found to represent 76% of the total 
Community POY production intended for sale and thus a major proportion of that 
production. 
(23) On this basis, the complaining Community producers constitute the Community 
industry within the meaning of Article 4(5) of the Basic Regulation. 
in. THE SITUATION OF THE COMMUNITY INDUSTRY 
(a) Community consumption 
(24) The apparent Community consumption increased from 119 000 tonnes in 1991 to 
122 000 tonnes in 1992, fell back to 119 000 tonnes in 1993, to increase again to 
125 000 tonnes in the investigation period. 
(b) Production, production capacity and capacity utilization 
(25) The Community industry's production for sale increased from 58 000 tonnes in 1991 
to 77 000 tonnes in 1992, fell back to 72 000 tonnes in 1993, to increase again 
to 76 000 tonnes during the investigation period. 
(26) Over the last three years, the production capacity has remained the same and the 
capacity utilization rate has been stable at 80%. 
(c) Sales volume and market share 
(27) The quantity of POY sold on the Community market by the Community industry 
dropped from 50 000 tonnes in 1991 to 49 000 tonnes in 1992 to 47 000 tonnes in 
1993 and 46 000 tonnes in the investigation period, despite the increase in apparent 
Community consumption, noted in recital (24). 
(28) The Community industry's market share changed as follows: 42% in 1991, 40% in 
1992, 39% in 1993 and 36.5% during the investigation period. Overall, the market 
share has declined by 5.5 percentage points while the apparent consumption increased 
by around 5 percentage points. 
(d) Price movements 
(29) Prices of the Community industry for POY have fluctuated in line with the prices of 
the raw materials PTA (Pure Terephthalic Acid), DMT (Dimethylterephthalate) and 
Glycol. The upward price trend of POY recorded at the end of the investigation 
period (first half of 1994) is the result of the worldwide shortage of raw materials and 
their subsequent price increases. These price increases occurred consequently for all 
operators in the market at the same time, but should not hide the fact that the 
Community industry's prices remained consistently undercut by the exporters' prices 
during the investigation period (see recital (38)). 
(e) Profitability 
(30) The Commission found that, overall and from 1991 onwards, the POY Community 
industry has recorded poor financial results. The situation has deteriorated 
considerably from 1992 with an average loss of 22% on turnover during the 
investigation period. All complaining Community producers have suffered 
heavy losses. 
(f) Employment and investment 
(31) Given the integrated nature of the polyester yarn industry, it has not been possible to 
isolate employment and investment data for POY production only. Data available 
concerning the industry globally indicates that there has been a steady curtailment in 
the labour force of about 15% since 1991, even though industry is not 
labour-intensive. 
Investments by the complaining Community producers have been reduced in some 
cases to a level below that needed to ensure optimal production. 
(g) Conclusion 
(32) In spite of the measures in force, an overall assessment of the main economic 
indicators leads to the conclusion that the Community industry producing POY 
continues to show signs of economic difficulties. Its situation has constantly 
deteriorated since 1991, as is demonstrated in particular by a loss in market share of 
up to 5.5% over four years, notwithstanding an increase in Community consumption 
over the same period, by a reduction of employment and by substantial 
financial losses. 
IV. RECURRENCE OF INJURY 
(33) In accordance with Article 15 of the Basic Regulation, the Commission examined 
whether the expiry of the measures in force would lead again to injury or threat of 
injury to the Community industry. 
TAIWAN 
(34) Imports of Taiwanese POY regressed from 2 812 tonnes in 1991 (2.4% market share) 
to 1 117 tonnes in 1992 (0.9% market share), to 551 tonnes in 1993 (0.5% market 
share) and to 448 tonnes during the investigation period (0.4% market share). It 
should be noted in this respect that the three major Taiwanese producers were not 
subject to any anti-dumping duty. Apart from the imports from these three producers, 
which are not concerned by the review investigation, the Community market share 
held by the remaining imports from Taiwan amounts to 0.1% only. Information 
available suggests that the Taiwanese producers have re-oriented their exports to other 
third countries which are geographically closer, where a steady growth for POY is 
being registered. Furthermore, these producers have apparently moved to a greater 
extent into the downstream product, PTY. 
Consequently, there is no reasonable indication that the expiry of the anti-dumping 
measures on imports of POY originating in Taiwan would lead to a recurrence of 
injury or threat of injury to the Community industry. 
TURKEY 
(a) Volume and Community market share of imports from Turkey 
(35) It was found that imports of POY from Turkey have increased substantially between 
1991 and the investigation period, from 7 933 tonnes to 22 436 tonnes. This 
corresponds to an increase in market share over the same period from 6.7% to 17.9%. 
(36) This development has to be seen in the context of the setting-up of a PTY production 
facility in the Community by the largest Turkish producer and exporter of POY and 
PTY. Nevertheless, a significant part of the exports of POY to the Community by 
this Turkish producer were destined to unrelated customers. 
(37) It was claimed that Turkish imports of POY merely filled the gap left by the 
decreasing exports of POY yarn from Taiwan. This is factually incorrect since the 
Taiwanese imports have continuously decreased from less than 3 000 tonnes in 1991, 
while Turkish imports increased from around 8 000 tonnes in 1991 to 22 400 tonnes 
during the investigation period. 
(b) Prices of the imports 
(38) On the basis of price information available, a comparison has been made between the 
weighted average Community industry's selling price and the weighted average price 
of the imports concerned at the same level of trade. The Community industry's price 
was at ex-works and, the prices of the imports were at free-at-Community frontier, 
customs cleared. 
This comparison showed in the case of Turkey an undercutting margin, persisting 
throughout the entire investigation period, higher than that established in the 
original investigation. 
(c) Impact of other factors on the situation of the Community industry 
(39) Among all imports of POY in the Community from other third countries, only those 
from the USA and Switzerland were of significant volume, all others taken together 
being negligible. 
However, the sales volume and market share in the Community of the US imports 
have steadily decreased between 1991 (6.9% market share) and the investigation 
period (1.9% market share). Imports from Switzerland remained relatively stable 
(around 13% market share) at very high prices, and the main Swiss exporter 
concerned is a subsidiary of a complaining Community producer. 
(40) It was alleged that the Community industry did not make the investments needed 
in order to remain competitive. In this regard, an industrial rationalization process has 
been in operation for some years among several Community producers. This process, 
however, requires financial resources which have been limited due to the existence 
of low-priced dumped imports on the Community market. 
(41) The claim was made that, like other industrial sectors in the Community, the 
producers of POY suffered from the recession and not from the Turkish imports and, 
in particular that, because of the recession, the Community producers were not in a 
position to reflect the increasing costs of raw materials in their prices of POY. Here, 
it has to be noted that the development of the apparent Community consumption 
described in recital (24) above does not reflect any recession in the POY market. 
(42) Finally, it was asserted by the Turkish exporter that a capacity utilization rate of 70% 
allows any "fibres-business" to achieve a breakeven point. This statement has not 
been substantiated by the information gathered in Taiwan and among the Community 
industry's producers. According to this information, capacity utilization for this 
industry should normally reach a rate of 90% in order to achieve breakeven. Indeed, 
the majority of Taiwanese producers report utilization rates above 95%. The 
11 
Community industry's utilization rate was, throughout the period under consideration, 
around 80%. In any event, the capacity utilization factor has to be examined in 
conjunction with other injury factors such as prices and volumes at which production 
is sold before any decisive conclusions can be drawn. It is clear that, in cases such 
as this, even a 90% utilization rate could result in a loss-making situation if 
prices of the Community producers were severely depressed by the low-priced 
imports concerned. 
(d) Conclusion 
(43) In these circumstances, it appears that there are no other factors but the imports of 
POY originating in Turkey which may explain the difficult situation of the 
Community industry, notwithstanding the anti-dumping measures in force. It is 
therefore concluded that the expiry of these measures as regards Turkey could 
only worsen the situation of the Community industry through a recurrence of injury 
to this industry. 
V. DUMPING 
(44) The continued existence of dumping was verified, to ascertain firstly whether there 
were grounds for the continuation of measures against POY from Turkey and, if so, 
whether any change in the dumping margin required the existing measures to be 
amended accordingly. 
(a) Normal value 
(45) It was first examined whether the volume of sales of the sole Turkish producer which 
had exported to the Community during the investigation period on the domestic 
market had attained at least 5% of the volume of the exports of the like product to 
the Community - a percentage which has consistently been considered to constitute 
sales in sufficient quantities to permit a proper comparison. This producer achieved 
domestic sales representing only 2.6% of the quantity exported to the Community. 
Accordingly, those sales were considered insufficient to establish a representative 
domestic price, and normal value had to be constructed in accordance with 
Article 2(3)(b)(ii) of the Basic Regulation. 
(46) For all the types of the product sold for export to the Community by the 
Turkish producer, a constructed normal value was calculated, by adding to the 
manufacturing costs of the exported types, a reasonable amount for selling, general 
and administrative expenses (SG&A) and a profit. Since there were insufficient sales 
of POY by the producer concerned on the domestic market, and since this was the 
only producer/exporter involved in the investigation which sold POY on that market, 
the amount for SG&A and profit was calculated by reference to the sales made by 
this producer in the same business sector, in Turkey, in the polyester yarn sector, in 
accordance with Article 2(3)(b)(ii) of the Basic Regulation. 
12 
(b) Export prices 
(47) The Turkish producer shipped POY to independent importers in the Community and 
to one related importer in the Community. 
(48) Since the POY imported by the related company was transformed into PTY by the 
same company and sold to the first independent buyer as such, it would have been 
necessary to construct an export price for POY from the resale price of PTY. Given 
the inherent difficulties of such an exercise and taking into consideration the large 
quantities sold by the Turkish exporter to independent importers (more than 60% of 
its exports to the Community) it was considered that the transactions between related 
parties should be disregarded altogether; export prices were determined exclusively 
on the basis of the prices relating to transactions with independent importers. 
(c) Comparison 
(49) Normal value by product type was compared with the export price for the 
corresponding type, on a transaction-by-transaction basis at the ex-works stage and 
at the same level of trade. 
(50) For the purpose of a fair comparison, normal value was adjusted in accordance with 
the provisions of Article 2(9) and (10) of the Basic Regulation to take account of 
differences directly affecting price comparability. The adjustments concerned import 
charges and indirect taxes and differences in selling expenses arising from sales made 
under different conditions and terms of sale, namely credit terms and transport costs. 
(d) Dumping margins 
(51) The above comparison revealed the existence of dumping, the margins of dumping 
being equal to the amount by which the normal value, as established, exceeds the 
price for export to the Community. 
(52) The weighted average dumping margin for the Turkish producer concerned, expressed 
as a percentage of the free-at-Community-frontier price, customs duty unpaid, is 
as follows: 
Sasa-Artificial and Synthetic Fibres Inc. 3.3%. 
(53) In the case of Turkish companies which cooperated in the investigation but were 
found neither to have sold POY on their domestic market nor to have exported it 
during the investigation period, the weighted average dumping margin found for the 
sole company which did export during the investigation period is considered 
appropriate, since it takes into account the cooperation of the companies concerned 
by distinguishing them from those which did not cooperate in the investigation. 
Accordingly, the dumping margin of 3.3% is also applicable to the 
following companies: Korteks-Mensucat Sanayi ve Ticaret A.S. and 
Nergis-Tekstil Sanayi ve Ticaret A.S. 
13 
(54) In the case of those Turkish producers which failed to make themselves known or did 
not reply satisfactorily to the Commission's questionnaire, the dumping margin was 
determined on the basis of the facts available in accordance with Article 7(7)(b) of 
the Basic Regulation. It was considered that the most reasonable facts were those 
established during the investigation and that, in order to avoid giving a premium for 
non-cooperation and to ensure that the anti-dumping measures introduced afforded 
effective protection from unfair trade, the dumping margin attributable to those 
producers should be based on the POY type with the highest dumping margin found 
for the sole cooperating Turkish producer which had exported to the Community 
during the investigation period. On that basis, the POY type chosen represented 
around 10% of all exports to the Community by the Turkish producer concerned, and 
the dumping margin established for Turkish non-cooperating companies amounts 
to 6.8%. 
VI. COMMUNITY INTEREST 
(55) A determination as to whether the Community interest calls for intervention needs to 
be based on an assessment of all the various interests taken as a whole, including 
those of the producers, users and consumers in the Community. In such an 
examination, the need to eliminate the trade-distorting effects of injurious dumping 
and to restore effective competition needs to be given special consideration. 
(56) It has to be recalled that in the previous investigation, the adoption of measures was 
considered to be in the interest of the Community. It was stated that the measures 
would have a fairly negligible effect on the production costs of the user industry and 
no serious consequences for consumers. 
(57) These considerations remain valid in considering the extent to which it would be in 
the Community interest to maintain measures in force. No arguments were submitted 
by the users as concerns the impact of the price of POY in the end product, although 
questionnaires were sent to those users made known to the Commission. In any 
event, given the range of the measures proposed and the figures available with regard 
to the weight of POY in the manufacturing of PTY, the impact of the reviewed 
measure on the prices for the end product appears to be negligible. 
(58) On the contrary, to allow the measures to expire would put the Community industry 
at a risk, since it would suffer increasingly from the dumped low prices of the 
Turkish imports, being thus prevented from redressing its precarious financial 
situation. It appears therefore that the interests of the Community industry far 
outweigh the possible, and in any case limited, disadvantages for users and 
final consumers. 
(59) On that basis it is concluded that Community interest calls for the maintenance in 
force of the anti-dumping measures, duly amended to eliminate the injurious effects 
of dumped imports originating in Turkey. 
14 
VIL MEASURES 
Taiwan 
(60) By virtue of the reasons given in recital (34) with regard to Taiwanese imports, the 
existing anti-dumping measures on those imports should be allowed to lapse. 
Turkey 
(61) In order to prevent the recurrence of injury and to provide adequate protection from 
continuing injurious dumping by Turkish imports, it is considered that the 
anti-dumping duty should be established in such a way as to allow the Community 
industry to realize the reasonable profit it has been deprived of through the negative 
impact of the dumped imports. 
(62) When calculating an adequate level of duty, the Council had to consider that the 
precarious situation of the Community industry consists mainly in a steady loss of 
market share and substantial financial losses due to depressed prices resulting from 
price undercutting. It is thus necessary that the measures taken allow the Community 
industry to make a reasonable profit in the future. 
(63) In this respect, the Council has calculated the price level considered adequate to 
remove injury on the basis of the weighted average cost of production of the 
Community industry, adding a profit of 6% considered reasonable for guaranteeing 
the industry productive investment on a long-term basis. This price level was then 
compared to the average import prices on a free-at-Community frontier basis, duty 
paid. Since the result of this comparison shows an injury margin higher than the 
dumping margin established, the duty should be based on the dumping margin found. 
E. POLYESTER TEXTURED FILAMENT YARN (PTY) 
I. THE SCOPE OF THE REVIEW 
(64) In Regulation (EEC) No 3905/88, one Taiwanese producer, Tuntex Distinct Corp, was 
exempted from the anti-dumping duty of 6.2% on imports of PTY originating in 
Taiwan because an insignificant dumping margin (0.31%) was found for 
this company. 
(65) For the same reasons as those set out in recital (19), this Taiwanese company, 
Tuntex Distinct Corp., has to be excluded from the scope of .the review as far as PTY 
is concerned. 
U. COMMUNITY INDUSTRY 
(66) The production of PTY by companies on behalf of which the complaint was lodged 
was found to represent 50% of the total PTY output in the Community 
during the investigation period (1 July 1993 to 30 June 1994) and hence a major 
proportion of this output. Therefore, the complaining companies constitute the 
"Community industry" within the meaning of Article 4(5) of the Basic Regulation. 
Those complaining companies produced PTY from in-house POY production, with 
the exception of one company which purchased POY on the market. 
15 
(67) A producer in the Community was found to be a wholly-owned subsidiary of a 
Turkish exporter of POY, the upstream product. Although not cited in the initial 
complaint, this producer cooperated in the investigation. It was considered whether 
this producer operating in the Community should be excluded from the definition of 
the Community industry within the meaning of Article 4(5) of the Basic Regulation 
In this respect, it should be recalled that the provisions of that Article do not provide 
for the automatic exclusion of Community producers related to the exporters or 
producers located in exporting countries, or producers which are themselves importing 
the allegedly dumped product, but rather impose on the Community institutions the 
obligation to consider on a case-by-case basis whether the exclusion of any producer 
is warranted. 
(68) Following the previous practice of the Community institutions, it was considered that 
this Community producer, through its relationship with the producer/exporter 
concerned in Turkey, was shielded from the injurious effects of the dumped imports. 
It was further considered, in accordance with that practice, that to include this 
producer in the definition of the Community industry would distort the assessment of 
those effects. Indeed, the fact that the Community producer concerned produces PTY 
from POY bought at transfer prices from the related Turkish exporter found to have 
been dumping and causing injury to the complainants renders the production cost data 
for the product concerned unreliable. On those grounds, it was considered that the 
producer in the Community concerned had to be excluded from the definition of the 
Community industry. 
For the remainder of Chapter E, the term "Community industry" therefore, refers to 
the complaining Community producers of PTY only. 
HI. THE SITUATION OF THE COMMUNITY INDUSTRY 
(a) Community consumption 
(69) The total apparent Community consumption of PTY had increased from 230 000 
tonnes in 1991 to 237 000 tonnes in 1992 and, after a decline to 221 000 tonnes in 
1993, increased again to 241 000 tonnes in the investigation period. This represents 
an overall increase of consumption of around 5% over the period considered. 
(b) Production, production capacity, utilization rate 
(70) The Community industry's production of PTY dropped steadily from 104 000 tonnes 
in 1991 to 92 000 tonnes in 1993 and recovered to 95 000 tonnes during the 
investigation period. This represents an overall decrease in the Community industry's 
production of 8.6%, while Community consumption increased by 5% over the 
same period. 
16 
(71) The PTY production capacity of the Community industry has increased over the last 
three years by about 7%, from 114 000 tonnes in 1991 to 122 000 tonnes during the 
investigation period. This increase in PTY production capacity is specifically the 
result of significant investment in 1992 and 1993 by one company, related to a 
third-country producer. This company reduced drastically its imports of POY from 
the parent company and extended its production of POY and consequently its PTY 
capacity in the Community. 
(72) The utilization rate of production capacity of the Community industry as a whole 
decreased from 91% in 1991 to 78% in the investigation period. Given the fact that 
the polyester yarn industry is very capital-intensive (up to 90% utilization rate being 
considered to be normal), the decreasing utilization rate has a significant effect on the 
allocation of fixed costs. 
(c) Sales volume and market share 
(73) The quantity of PTY sold in the Community by the complaining Community 
producers declined from about 87 000 tonnes in 1991 and 1992 to 83 000 tonnes in 
1993, to increase again to 87 000 tonnes during the investigation period, in a context 
of growing demand. 
(74) The Community industry's share of the Community market moved as follows: 37.7% 
in 1991, 36.8% in 1992, 37.7% in 1993 and 36% during the investigation period. The 
overall relative stability of sales led, however, to a slight decrease of the market share 
due to the increase in Community consumption. 
(d) Price evolution 
(75) Prices of PTY have fluctuated in line with the prices of the raw materials used for 
producing the upstream product POY, namely PTA, DMT, and glycol. The increasing 
price trend of PTY recorded at the end of the investigation period (first half of 1994) 
as compared with 1993 (second half), is the result of the worldwide shortage of those 
raw materials and their consequent price increases. These price increases thus 
occurred for all operators in the market at the same time. 
(e) Profitability 
(76) It was found that, generally from 1992 onwards, the Community industry has recorded 
deteriorating financial results. The overall profitable situation in 1991 has turned into 
losses and has particularly worsened during the investigation period, reaching average 
losses of around 10% on turn-over. All complaining Community producers suffered 
heavy losses, or decreasing profitability. 
(0 Employment and investment 
(77) It should be noted that though the polyester yarn industry is not labour-intensive, 
since 1991 there has been a steady curtailment in employment by the 
Community industry. 
Investments by the Community industry were reduced in most cases to levels not 
allowing optimal production. 
17 
(g) Conclusion 
(78) In spite of the measures in force on imports of PTY originating in Turkey and 
Taiwan, an overall assessment of the main economic indicators leads to the 
conclusion that the PTY Community industry continues to show clear signs of 
economic difficulties. Its situation has constantly deteriorated since 1991, as is 
demonstrated in particular by a decline of production capacity utilization and market 
share, notwithstanding a certain increase of consumption of PTY in the Community, 
and also by increasing financial losses. 
IV. RECURRENCE OF INJURY 
(79) In accordance with Article 15 of the Basic Regulation, the question was examined 
whether the expiry of the measures in force would lead again to injury or threat of 
injury to the Community industry. 
(a) Volume and market share of imports from the exporting countries 
concerned 
(80) Imports of PTY from Taiwan have remained stable since 1991 at an annual level of 
around 7 000 tonnes. The assessment of these imports in the light of the development 
of Community consumption shows a market share of 3% in 1991, 2.9% in 1992, 3.2% 
in 1993 and 2.9% during the investigation period. 
(81) Imports of PTY originating in Turkey decreased from 4 504 tonnes in 1991 
(1.9% market share) to 3 406 tonnes in 1992 (1.4% market share) and to 1 546 tonnes 
in 1993 (0.7%) market share), but increased to 2 348 tonnes during the investigation 
period (0.98% market share). The changes in these imports and market shares 
appears to have been somewhat influenced by the setting-up of a PTY production 
facility in the Community by the largest producer and exporter of PTY in Turkey. 
(b) Prices of the dumped imports 
(82) In order to examine whether price undercutting was in evidence, all the types 
manufactured by the Community industry and those imported into the Community 
from the countries concerned have been divided into three groups according to their 
denier. A weighted average Community-industry selling price for each group was 
then compared with a weighted average price of each exporter concerned for the 
comparable group at the same level of trade. The undercutting margins thus obtained 
per group were then weighted in order to reach one margin per exporting company. 
The Community industry's prices were taken at an ex-works basis and the exporters' 
prices were expressed as free-at-Community frontier, customs cleared. 
As far as Turkey is concerned, this comparison showed an overall weighted average 
undercutting margin for the entire investigation period of 33.7%. 
As regards Taiwan, an overall weighted average undercutting margin of 23.6% for 
the entire investigation period was found, ranging from 0.9% to 34.6% according to 
the exporter. 
(c) Impact of other factors on the situation of the Community industry 
Other imports 
(83) Imports of PTY from other third countries, namely Indonesia, India, Malaysia, 
Thailand, the USA, South Africa and Slovakia were claimed to have influenced the 
situation of the Community industry. 
(84) Anti-dumping investigations concerning imports from India, Indonesia, Thailand and 
Malaysia are currently being carried out. With the exception of imports from India, 
which have decreased continuously since 1992 to reach during the investigation period 
a volume considered to be negligible, Community market share of the other three 
countries, taken together, increased significantly from 1.7% in 1991 to 9.6% during 
the investigation period. Prices of these imports into the Community appear to be 
higher than Turkish prices but lower than Taiwanese prices. However, no conclusions 
can be drawn yet as to the prices and the possibility of dumping by these imports, 
since the anti-dumping investigations are in progress. 
(85) Imports of PTY from the USA, although still significant (4.1% market share in the 
investigation period) dropped by 16% in volume between 1991 and the investigation 
period. As to imports of PTY from South Africa, they increased in terms of 
Community market share from 1.07% in 1991 to 1.47% during the investigation 
period. Eurostat figures, however, do not provide information on the types of PTY 
imported and, therefore, no conclusions can be drawn with regard to the prices at 
which imports of PTY from the USA and South Africa were made. 
(86) As far as Slovakia is concerned, imports of PTY into the Community reached a 
market share in the investigation period of 3.1%. However, it appeared that since 
1993, owing to an investment of a Community producer in Slovakia, a major part of 
imports into the Community originating in that country was made at transfer prices 
between related parties. It may reasonably be assumed that such imports cannot have 
been made by the Community producer in question with a view to adversely affect 
its own profitability. Consequently, it is concluded that the Slovakian imports cannot 
have had a significant impact on the situation of the Community industry. 
(87) It can therefore be concluded that imports of PTY from countries other than Taiwan 
and Turkey, for which injurious dumping is being investigated following evidence 
presented by the complainants, namely from Indonesia, Thailand and Malaysia, may 
have exacerbated the already unfavourable situation of the Community industry. For 
the other abovementioned countries, for which no anti-dumping investigation is in 
course, any contribution to the injury suffered by the Community industry cannot be 
substantiated. 
Other Community producers 
(88) Since the Community industry represents 50% of the total Community production of 
PTY, it was considered necessary to examine the behaviour of the other Community 
producers of PTY in the Community and their possible impact on the situation of the 
Community industry. 
The estimated production capacity of Community producers not included in the 
Community industry has remained stable over the last four years. The same applies 
to their actual production, which showed a slight increase similar to the Community 
industry's production, in the first half of 1994 only. As to the Community market 
share of those other Community producers, it showed during the investigation period 
a slight decrease similar to that of the Community industry. 
(89) Therefore, it does not appear that those producers' behaviour had injurious effects on 
the precarious situation of the Community industry, other than that resulting from 
normal competition. 
Investment level and recession 
(90) The same arguments as in the case of POY relating to the influence of insufficient 
investment and of the recession on the situation of the Community industry were 
made by the Turkish exporter with regard to PTY. The reasoning set out in 
recitals (40) and (41) for POY also applies to PTY. Investments by the Community 
industry have been limited by the lack of the necessary financial resources, due to the 
low-priced dumped imports of PTY, and the development of apparent Community 
consumption of PTY does not reflect any recession. 
(d) Conclusion 
(91) Although the anti-dumping measures in force have had a somewhat positive effect, 
in terms of the volume of the Turkish and Taiwanese imports of PTY into the 
Community, they have not prevented the pressure on Community prices from 
continuing. Therefore, even if imports from other third countries subject to 
anti-dumping investigations may have had some injurious effect on the situation of 
the Community industry, the fact remains that, taken in isolation, the dumped imports 
from Taiwan and Turkey, notwithstanding the existence of protective measures, 
have continued to contribute materially to the precarious situation of the 
Community industry. 
(92) In these circumstances, to allow the measures to expire is likely to waken further the 
Community industry through a recurrence of injury to this industry. 
V. DUMPING 
(93) The continuance of dumping was verified, to ascertain firstly whether there were 
grounds for the continuation of measures against PTY from Turkey and Taiwan and, 
if so, whether any change in the dumping margins required the existing measures to 
be amended accordingly. 
20 
(a) Normal value 
Turkey 
(94) As far as the determination of normal value for the Turkish producers is concerned, 
it was first established, for each producer, whether its total domestic PTY sales had 
been made in sufficient quantities to allow a proper comparison with its total 
PTY exports to the Community. 
(95) Only two out of the three Turkish producers which cooperated in the investigation 
exported PTY to the Community during the investigation period. These two producers 
were found to have sold PTY in their domestic market as well during that period. 
For each producer, the total domestic PTY sales volume was higher than 5% of its 
total export sales volume to the Community. Accordingly, those domestic sales were 
considered to have been made in sufficient quantities. 
(96) For each of the PTY types sold by the two Turkish producers on the domestic market 
and found to be identical or directly comparable to types sold for export to the 
Community, it was also considered whether domestic sales per type were made in 
sufficient quantities. 
(97) Domestic sales of each particular type were found to have been made in sufficient 
quantities, as the volume of each type of PTY sold in Turkey during the investigation-
period represented 5% or more of the volume of the comparable type sold for export 
to the Community. 
(98) It was subsequently examined for both producers whether the domestic sales of each 
type of PTY could be considered to have been effected in the ordinary course of 
trade, by looking at the proportion of profitable sales of the type in question. 
(99) Given the high inflation rate in Turkey, the methodology for assessing the ordinary 
course of trade in domestic sales was applied on a monthly basis, as follows: 
- In cases where the monthly volume of a type of PTY sold at a net sales price 
equal to or above the calculated monthly cost of production, as defined in 
Article 2(3)(b)(ii) of the Basic Regulation, represented more than 80% of the total 
monthly sales volume of that type, the normal value was established as a monthly 
weighted average of all domestic sales transactions of the type concerned made 
in each month of the investigation period, whether profitable or not. 
- In cases where the monthly volume of a type of PTY sold at a net sales price 
equal to or above the calculated monthly cost of production represented less than 
80% but still a sufficient quantity of the total monthly sales volume of that type, 
the normal value was established as a monthly weighted average of the profitable 
domestic sales transactions only for the type concerned in each month of the 
investigation period. 
21 
- In cases where the monthly volume of a type of PTY sold at a net sales price 
equal to or above the calculated monthly cost of production represented an 
insufficient quantity of the total monthly sales volume of that type, it was 
considered that the type in question was not sold in the ordinary course of trade 
and that the monthly normal value had therefore to be constructed. 
(100) As a result of the methodology referred to above for one Turkish producer, the 
monthly normal value for the type of PTY exported to the Community has been based 
on the monthly domestic price of the comparable type, after deducting from the sales 
price all discounts and rebates directly linked to the sales under consideration, in 
accordance with Article 2(3)(a) of the Basic Regulation. For the types exported by 
the other Turkish producer, the monthly normal value was based for the first seven 
months of the investigation period on a monthly constructed normal value, as more 
than 80% of the monthly domestic sales were made at a loss, and for the last five 
months of the investigation period, normal value was based on the monthly domestic 
sales price of the comparable types, since domestic sales in these latter months were 
found to have been made in the ordinary course of trade. 
(101) The constructed normal value was determined by adding to the manufacturing costs 
of the product types concerned, a reasonable amount for selling, general and 
administrative expenses (SG&A) and profit. 
(102) This amount was established for the Turkish producer concerned by reference to the 
expenses incurred and the profit realized by each producer on profitable sales of the 
like product on the domestic market. 
Taiwan 
(103) In assessing whether domestic sales of the product concerned by the Taiwanese 
cooperating producers were made in sufficient quantities to allow a proper comparison 
and in the ordinary course of trade, the Commission applied the same methodology 
followed with regard to the Turkish producers (see recitals (94) to (98)) but for the 
whole investigation period instead of on a monthly basis. 
(104) It was found that, for each of the Taiwanese producers concerned, both the total 
volume of domestic sales of PTY and the domestic sales volume of each type of 
PTY, were higher than 5% of the corresponding volumes of the like product sold for 
export to the Community. As a consequence, total domestic sales and domestic sales 
of each product type were considered to have been made in sufficient quantities to 
allow a proper comparison. 
(105) It was also found that out of a total of 32 types of PTY sold for export to the 
Community by the Taiwanese producers concerned, only for 16 types had the 
corresponding like product been sold on the domestic market in the ordinary course 
of trade. Normal value was therefore established for these types on the basis of the 
domestic price of comparable types, after deducting all discounts and rebates 
directly linked to the sales under consideration, in accordance with Article 2(3)(a) of 
the Basic Regulation. 
22 
(106) For the remaining 16 types of PTY sold for export to the Community, normal value 
needed to be constructed. 
(107) For each of the Taiwanese producers concerned, the constructed normal value was 
determined by adding to the manufacturing costs of the product types in question a 
reasonable amount for SG&A and profit. This amount was established by reference 
to the expenses incurred and the profit realized by each producer on the profitable 
sales of the like products on the domestic market. 
(b) Export prices 
(108) Since all imports of PTY originating in Taiwan and Turkey into the Community were 
made directly by independent importers, export prices were determined on the basis 
of the prices actually paid or payable for the product sold for export to the 
Community, in accordance with Article 2(8) of the Basic Regulation. 
( 109) In the case of one of the Taiwanese producers concerned, the Commission was unable 
to use its reply to the questionnaire as the basis for establishing export prices. The 
reply was deemed unreliable because information supplied concerned one sales 
transaction only which could not be satisfactorily verified. It was therefore considered 
that this company did not export the product concerned to the Community during the 
investigation period. 
(c) Comparison 
(110) Weighted average normal value by product type was compared with the export price 
for the corresponding type, on a transaction-by-transaction basis at an ex-works level 
and at the same level of trade. 
(111) For the purpose of a fair comparison, normal value was adjusted in accordance with 
the provisions of Article 2(9) and (10) of the Basic Regulation to take account of 
differences directly affecting price comparability. These adjustments concerned selling 
expenses arising from sales made under different conditions and terms of sale. 
Adjustments claimed for the above differences were limited to those for which 
satisfactory evidence was submitted that they had a direct relationship to the sales 
under consideration. 
(d) Dumping margins 
(112) The above comparison revealed the existence of dumping, the margins of dumping 
being equal to the amount by which the normal value, as established, exceeds the 
price for export to the Community. 
The weighted average dumping margins by producer, expressed as a percentage of the 
free-at-Community frontier prices, customs duty unpaid, are as follows. 
23 
Turkey 
Korteks-Mensucat Sanayi ve Ticaret A.S. 7.6% 
Sasa-Artificial and Synthetic Fibres Inc. 8.7% 
Taiwan 
Chung Shing Textile Co. Ltd 5.5% 
Far Eastern Textile 6.6% 
Hsin Pao Textile Co. Ltd 0% 
Nan Ya Plastics Corporation 10.6% 
Lea Lea Entreprise Co. Ltd 12.9% 
Lanfa Textile Co. 16.1% 
(113) For the reasons given in recital (53), for producers which cooperated in the 
investigation but were found not to have exported during the investigation period, the 
weighted average dumping margin found for the cooperating producers which did 
export was considered appropriate. 
In the case of the Turkish producers hereby concerned, the margin amounts to 8.3% 
and should apply to the company "Nergis-Tekstil Sanayi ve Ticaret". In the case of 
the Taiwanese producers hereby concerned, the margin amounts to 7% and is 
applicable to the following companies: Shingkong Synthetic Taiwanese Fibres Corp. 
and Zig Sheng Ind. Co. Ltd. 
(114) For those producers in the exporting countries concerned which neither replied 
satisfactorily to the Commission's questionnaire nor otherwise made themselves 
known, the dumping margin was determined on the basis of the facts available in 
accordance with Article 7(7)(b) of the Basic Regulation. 
In this respect, the most reasonable facts available were considered to be those 
established during the investigation. In order to avoid giving a premium for 
non-cooperation and to ensure that the measures introduced afford effective protection 
for the Community industry from unfair trade, it is considered appropriate to establish 
the dumping margin for the non-cooperating producers in each of the countries 
concerned at the level of the highest dumping margin found for the cooperating 
producers in the country in question. 
On this basis, for Turkey, the highest dumping margin found for a cooperating 
producer is 8.7%. However, in view of the low level of cooperation of 
Turkish producers, evidenced by the fact that imports of non-cooperating producers 
represent 40% of total imports from Turkey during the investigation period, this 
dumping margin would constitute a bonus for non-cooperation in this proceeding. 
Accordingly, it is considered appropriate to calculate the dumping margin for 
non-cooperating producers in Turkey by reference to the highest dumping found for 
a type of PTY sold for export to the Community by the cooperating producers in that 
country. This dumping margin is 15.2% and corresponds to a PTY type which 
represented more than 3% of total exports to the Community during the investigation 
period by one of the cooperating Turkish producers. Consequently, the dumping 
margin for non-cooperating producers in Turkey amounts to 15.2%. 
24 
With regard to Taiwan, the highest dumping margin found for a cooperating producer 
in that country is 16 1%. This dumping margin is considered appropriate in the light 
of the high level of cooperation shown by Taiwanese producers. Indeed, exports of 
PTY by these producers represent 90% of total Taiwanese exports to the Community 
during the investigation period. Consequently, the dumping margin for non-cooperating 
producers in Taiwan amounts to 16.1%. 
VI. COMMUNITY INTEREST 
(115) A determination as to whether the Community interest calls for intervention should 
be based on an appreciation of all the various interests taken as a whole, including 
those of the producers, users and consumers in the Community. In such an 
examination, the need to eliminate the trade distorting effects of injurious dumping 
and to restore effective competition should be given special consideration. 
(116) It has to be recalled that in the previous investigation, the adoption of measures was 
considered to be in the interest of the Community. It was stated that the measures 
would have a negligible effect on the production costs of the user industry and no 
serious consequences for consumers. 
(117) Those considerations remain valid in considering the extent to which it would be in 
the Community interest to maintain measures in force. No arguments were submitted 
by the users as to the impact of the price of PTY on the end product. Nevertheless, 
given the range of the measures proposed, the impact of the reviewed measures on 
the prices for the end products - mainly fabrics and carpets - has been estimated to 
be moderate. 
(118) On the contrary, to allow the measures to expire would put the Community industry 
at a risk since it would suffer increasingly from the dumped low prices of Taiwanese 
and Turkish imports without being able to redress its precarious financial situation. 
It thus appears that the interests of the Community industry by far outweigh the 
possible, and in any case limited, disadvantages for users and final consumers. 
(119) It is therefore concluded that Community interest calls for maintenance of the 
anti-dumping measures in force, duly amended to eliminate the injurious effects of 
dumped imports originating in Turkey and Taiwan and that those measures should 
continue to take the form of anti-dumping duties. 
VII. MEASURES 
(120) In order to provide adequate protection from continued injurious dumping by Turkish 
and Taiwanese imports and to prevent the recurrence of injury, it is considered that 
anti-dumping duties should be established in such a way as to allow the Community 
industry to realize the reasonable profit of which it has been deprived through the 
negative effects of the dumped imports. 
25 
(121) When calculating the adequate amount of duty, consideration was given to the 
precarious situation of the Community industry, which consisted mainly in loss of 
market share and substantial financial losses due to depressed prices resulting from 
price undercutting. It is thus necessary that the measures taken allow the Community 
industry to make a reasonable profit in the future. 
(122) In this regard, the price level considered adequate to remove injury was calculated on 
the basis of the weighted average cost of production of the Community industry, 
adding a profit of 6% regarded as reasonable for guaranteeing the industry productive 
investment on a long-term basis. This price level was then compared to the average 
import prices on a free-at-Community-frontier basis, duty paid. 
( 123) Since the result of this comparison, for all producers in the countries concerned, shows 
higher injury margins than the respective dumping margins established, the duties 
should be based on the dumping margins found, 
HAS ADOPTED THIS REGULATION: 
Article 
Articles 1 and 2 of Regulation (EEC) No 3905/88 are replaced by the following: 
"Article 1 
1. A definitive anti-dumping duty is hereby imposed on imports of partially oriented 
polyester yarn (POY) falling within CN code 5402 42 00 and originating in Turkey. 
2. The rate of the duty applicable to the net, free-at-Community-frontier price, before 
customs clearance, shall be as follows: 
COUNTRY 
Turkey MANUFACTURER 
Sasa Artificial and 
Synthetic Fibres Inc., 
Adana 
Korteks-Mensucat Sanayi 
ve Ticaret AS., Bursa 
Nergis-Tekstil Sanayi ve 
Ticaret AS., Bursa 
Others RATE OF 
DUTY 
3.3% 
3.3% 
3.3% 
6.8% ADDITIONAL 
TARIC CODE 
8895 
8895 
8895 
8536 
26 
3 Definitive anti-dumping duties on imports of partially oriented polyester yarn (POY) 
falling within CN code 5402 42 00 and originating in Taiwan shall no longer apply. 
4. Unless otherwise specified, the provisions in force concerning customs duties 
shall apply. 
Article 2 
1. A definitive anti-dumping duty is hereby imposed on imports of polyester textured 
filament yarn (PTY) falling within CN codes 5402 33 10 and 5402 33 90 and 
originating in Turkey and Taiwan. 
2. The rate of the duty applicable to the net, free-at-Community-frontier price, before 
customs clearance, shall be as follows: 
COUNTRY 
Taiwan 
Turkey MANUFACTURER 
Lea Lea Enterprise Co. 
Ltd, Taipei 
Nan-Ya Plastics 
Corporation, 
Taipei 
Shingkong Synthetic 
Fibres Corp., Taipei 
Zig Sheng Ind. Co Ltd, 
Taipei 
Far Eastern Textile Ltd, 
Taipei 
Chung Shing Textile Co. 
Ltd, Taipei 
Others 
Sasa-Artificial and 
Synthetic Fibres Inc., 
Adana 
Nergis-Tekstil Sanayi ve 
Ticaret. A.S., Bursa 
Korteks-Mensucat 
Sanayi ve Ticaret. AS., 
Bursa 
Others RATE OF 
DUTY 
12.9% 
10.6% 
7% 
7% 
6.6% 
5.5% 
16.1% 
8.7% 
8.3% 
7.6% 
15.2% ADDITIONAL 
TARIC CODE 
8893 
8162 
8163 
8163 
8894 
8161 
8164 
8166 
8167 
8892 
8170 
27 
with the exception of imports which are manufactured and sold for export to the 
Community by the following Taiwanese companies, which shall not be subject to any 
anti-dumping duty: 
TAIWAN MANUFACTURER 
Tuntex Distinct Corp., 
Taipei 
Hsin Pao Textile Co. 
Ltd, Taipei RATE OF 
DUTY 
0% 
0% ADDITIONAL 
TARIC CODE 
8160 
8160 
3. Unless otherwise specified, the provisions in force concerning customs duties 
shall apply." 
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 
28 


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