ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)505
Vol.1981/0151

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)505 final
Brussels.27August1981
Proposalfora
COUNCILREGULATION (EEC)
imposing adefinitive anti-dumping dutyono-xylene
(orthoxylene )originating inPuertoRicoandthe
UnitedStatesofAmerica
(submittedtotheCouncilbytheCommission )
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C0M(81)505final

EXPLANATORY MEMORANDUM
InMay1981 theCommission imposed aprovisional anti-dumping duty of
14.47% onimports of-o-xylene (orthoxylene )originating inPuerto Rico
andtheUnited States ofAmerica . . "
Thefacts asfinally established show that the Shell Chemical Company
had aweighted average dumping margin of14.47% inthe last three quarters
of1980 .SunPetroleum had adumping margin of10.73% ,Arco 4.96% and
Corco 4.43% .Phillips Petroleum wasfound not tobedumping .None of
these companies disputed theCommission 'sfindings .Since theimposition
Oftheprovisional duty ,theTenneco OilCompany ,Exxon Chemicals International
Supply SA,SunInternational Inc .andSunoco ,Overseas Incoffered toco-operate ,
inan'invest igation oftheir exports
tothe Community andsubsequently offered undertakings tothe Commission
which eliminated the -dumping found .^Forthose exporters anddealers
•% .*••
whodidnot co-operate withthe Commission ,itwasassumed that their •
dumping margins would not belower than thehighest margin found for .
those exporters whodid co-operate i.e. 14.47% for Shell Chemical Company ,
andthat this margin should therefore beused forthenon-co-operating v' '
exporters .
With regard toinjury caused tothe Community industry itwasshown
« • ' •-
that total imports ofo-xylene increased from 55000tonnes in1978 to
102000tonnes in1980 andthat approximately 80%ofthe "imports inthe *
investigation ,period were dumped .Themarket share ofthese imports
rose from 97.in1977 to17% in1980 .'TheEECindustry 'sresale prices
hadfallen irv1980 leading to'heavy losses byalltheproducers concerned .
Production had decreased from 560 000 tonnes in 1978 to291.000 tonnes
in1981 .
Itistherefore proposed toimpose adefinitive anti-dumping duty of14.47%
ono-xylene originating inPuerto Rico andthe United States ofAmerica .It
is,however ,proposed toexclude from theapplication 6fthis duty the
exports oftheonefirm found nottobedumping andofthe firms who -offered
undertakings tothe Commission .
J
Itisfurther proposed that theamounts secured bywayofprovisional duty
should bedefinitively collected ..

COUNCILREGULATION (EEC)
imposing adefinitiveanti-dumping dutyono-xylene (orthoxylene )
originating inPuertoRicoandtheUnitedStatesofAmerica
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)No3017/79of20December1979on
protectionagainstdumpedorsubsidizedimportsfromcountriesnotmembers
oftheEuropeanEconomicComrnunityd ),andinparticularArticle12thereof,
HavingregardtotheproposalsubmittedbytheCommissionafterconsultation
withintheAdvisoryCommitteesetupunder Regulation(EEC)No3017/79,
WhereastheCommission,byRegulation (EEC)No1411/81(2),imposedaprovisional
anti-dumping dutyof14.47%onimports'ofo-xyleneoriginating inPuertoRico
andtheUnitedStatesofAmerica,withtheexceptionofo-xyleneexportedby:
-PhillipsParaxylene Inc.andInternational PetroleumSalesInc.,Panama,
membersofthePhillipsPetroleumGroup,whowerefoundnottobedumping;
-ArcoChemicalCompany,whichvoluntarily gaveanundertaking toincreaseits
pricestolevelswhicheliminatedthedumpingmarginsfound;
-Commonwealth OilRefineryCompanyInc.,forwhichtherateofdutywas4.43%;
-sunPetroleumProducts Company,forwhichtherateofdutywas10.73%;
Whereas,inthecourseofthesubsequentexamination ofthematter,completed
aftertheimpositionofthisprovisional duty,theinterestedpartieshad
theopportunity tomakeknowntheirviewsinwritingandtobeheardbythe
Commission,toinspectnon-confidential information relevanttothedefence
oftheirinterestsandtobeinformedoftheessentialfactsandconsideratipns
onthebasisofwhichitwasintendedtomakeafinaldetermination ;whereas
someoftheexportersandimportersconcernedavailedthemselvesofthese
possibilities bymakingknowntheirviewsinwritingandorally;whereas
(1)0JNoL339,•31.12.1979,p.1
(2)0JNoL141,27.5.1981,p.29

-2-
ShellChemicalCompany,
thePhillipsPetroleumGroup,ArcoChemicalCompany,/Commonwealth OilRefineryCompany
andSunPetroleumProducts Companydidnotdisputethefindings ,oftheCommission;
Whereas theTennecoOilCompany,Houston,Texas,contacted
theCommissiontosaythattheyhadwritteninFebruary1981inresponsetothe
notice"announcing theopeningof.theanti-dumping ,proceeding on"o-xyleneahd
hadofferedfullco-operation inthesubsequentinvestigation ;whereasthis
* 'letterfailedtoreachtheresponsible Commission services;whereasanon-
spotinvestigation thentookplaceatTenneco'spremisesinHoustonand
acomparison attheFOBleveloftheirexportpricestotheCommunitywith
theirU.£.domesticpricesshowedthatthere .hadbeenaweightedaverage
\ •
dumpingmargininthelastthreequartersof1980of5.15%;whereas
ExxonChemicalInternational SupplySAhavingprovidedsomeinformation
duringthepreliminary investigation nowcameforwardwithsupplementary -
evidencewhichshowedthat'therehadbeenadumpingmarginofapproximately •
• /thi.rd •
3%ontheirexportsinthesecondandquartersbf1980;whereasSunocoOverseas
inc>andSunInternational Inc.alsowrotetotheCommissionofferingto1
co-operate inanexamination ofthefactsconcerningtheirexportsand-anon-spot
investigation attheirpremisesshowedthat,infact,therehadbeennodirect
exportsofo-xylenebythesecompaniesin1980andthat,consequently ,itwas
notpossibletodetermine on.thebasisofpastexperience .thattheywould
notdumpiftheybeganexporting;whereasinthesecircumstances Sunoco
OverseasandSunInternational offeredpriceundertakings whichreflected ,
thenormalvaluesestablished duringtheinvestigation periodtoallowthem
tobeexcludedfromtheduty; "v
WhereastheCommission .hasotherwise receivednoadditional information
, * s •
inrespectofdumpingsuchastoleadittorevisetheweightedaverage
dumpingmarginsithadprovisionally established ;whereasthesemarginshavetherefore ;
beenconsidered asdefinitively established ;
Whereas,withregardtotheinjurycausedbythedumpedimportstothe
Communityindustry,theevidenceavailabletotheCommission showedthat
totalimportsofo-xylenefromthesourcesconcernedintotheCommunity

-3-
increasedfromapproximately 55000tonnesin1978toapproximately 102000
tonnesin_1980;whereasitwasshownthatapproximately 80%oftheseimports
weremadeatdumpedprices;
WhereasthemarketshareofthesedumpedimportsintheCommunity wasapproximately
14%in1980;
Whereas,sincemostoftheimportersconcernedwerenotwillingtoprovide
information totheCommission,theCommission wasunabletoverifytheresale
pricesofo-xyleneimportedatdumpedprices;
Whereas,however,theresalepricesoftheEECindustryhadsteadilyfallen
in1980andtherewasevidencethatcustomers hadcancelledtheircontracts
withtheCommunityindustrytobuydumpedmaterialfromtheareasconcerned,
thusfurtherdepressingtheEECproducers'prices;whereasalltheCommunity
industryhassufferedheavylossesin1980;
Whereasproductionofo-xyleneintheCommunityfellfrom560000tonnesin
1978to291000tonnesin1980andcapacityutilizationfellfrom70.7%in
1978to58.8%in1980;.
WhereastheCommissionhasconsideredtheinjurycausedbyotherfactorswhich,
individually orincombination,mayalsobeaffectingtheCommunityindustry;
whereasitwasdeterminedthatthelevelofdemandandconsumption inthe
Communityremainedrelativelystable;whereasimportsfromcountriesother
lodgedbytheEuropeanCouncilofChemicalManufacturers' Federations (CEFIC)thanthosenamedinthecomplainthavebeenfairlyconstantatconsiderably
lowervolumesthanthosefromPuertoRicoandtheUnitedStatesofAmerica;
whereastheCommission hasreceivednoinformation sincetheadoptionof
Regulation (EEC)No1411/81whichmightleadittorevisetheconclusions
reachedinthesaidRegulation inthisrespect;whereastheCommission has
thereforedefinitively concludedthatthedumpedimportshavecausedmaterial
injurytotheCommunityindustryconcerned;

-4-
Whereas,inthesecircumstances,protectionoftheCommunity'sinterests
callsfortheimpositionofadefinitiveanti-dumping dutyono-xylene
originating intheUnitedStatesofAmericaandPuertoRicowhich,having
regardtotheextentof_theinjurycaused,shouldbeequaltotheweighted
averagedumpingmarginestablishedforthelastthreequartersof1980,and
forthedefinitivecollection intheirentiretyoftheamountssecuredby
wayofprovisional anti-dumping duty;
WhereastheTennecoOilCompany/-ExxonChemicalInternational SupplySAand
theCommonwealth OilRefineryCompanyhavemeanwhilevoluntarily undertakento
increasetheirpricestolevelswhicheliminatethedumpingmarginsfound;whereas
SunocoOverseasInc.andSunInternational Inc.havevoluntarily undertakento
respectthenormalvaluesestablished duringtheinvestigation ;whereasthe
Commissionconsiderstheseundertakings tobeacceptable;whereasitis
consequently at)propHatetoexcludetheimportsoftheproducts
exportedby.thesecompaniesfromtheapplication oftheduty;
%
Whereas,forthereasonsindicatedabove,exportsofo-xylenetotheCommunity
byPhillipsPetroleumGroup ,andArcoChemicalCompanyshouldalsobe ~
excludedfromtheapplicationofthisdefinitiveanti-dumping duty;
HASADOPTEDTHISREGULATION :
Article 1
1.Adefinitiveanti-dumping dutyisherebyimposedono-xylene(orthoxylene )falling
withinCommonCustomsTariffsubheading^9.01DIandcorrespondingto
NIMEXEcode29.01-65originating inPuertoRicoandtheUnitedStatesof
America.
2.Thisdutyshallnotapplytoo-xylene exportedby:
-ArcoChemicalCompany,
-PhillipsParaxyleneInc.andInternational PetroleumSalesInc.,Panama,
membersofthePhillipsPetroleumGroup
ï ' ' '--Tenneco0ilCompany,
-ExxonChemicalInternational SupplySA-
~SunocoOverseasInc.anc'StiriInternational Inc.,
-Commonwealth OilRefineryCoInc.

3.Therateofthedutyshallbe14.47%onthebasisofthecustoms
valuedetermined inaccordancewithCouncilRegulation (EEC)No1224/80
of28May1980onthevaluationofgoodsforcustomspurposes(1),except
forexportsmadebySunPetroleumProductsCo.,Philadelphia,Pennsylvani
forwhichtherateofdutyshallbe10.73%.
4.Theprovisions inforceconcerning customsdutiesshallapplyfor
theapplication ofthisduty.
Article2
Theamountssecuredbywayofprovisional anti-dumping dutypursuantto
»
Regulation (EEC)No1411/81shallbedefinitively collected.
Article 3
ThisRegulationshallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, FortheCouncil
(1)0JNoL134,31.5.1980,p.1