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Brussels, 11.5.2011

COM(2011) 261 final

2011/0115 (NLE)

Proposal for a

COUNCIL REGULATION

terminating the anti-dumping proceeding on imports of polyester staple fibres originating in the People's Republic of China

EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

2. Grounds for and objectives of the proposal

This proposal concerns the application of Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community ('the basic Regulation') in the proceeding concerning imports of polyester staple fibres originating in the People's Republic of China.

- General context

This proposal is made in the context of the implementation of the basic Regulation and is the result of an investigation which was carried out in line with the substantive and procedural requirements laid out in the basic Regulation.

- Existing provisions in the area of the proposal

- Council Regulation (EC) No 428/2005[1] of 10 March 2005 imposing a definitive anti-dumping duty on imports of polyester staple fibres originating in the People's Republic of China and Saudi Arabia, amending Regulation (EC) No 2852/2000 imposing a definitive anti-dumping duty on imports of polyester staple fibres originating in the Republic of Korea and terminating the anti-dumping proceeding in respect of such imports originating in Taiwan.

- Consistency with other policies and objectives of the Union

Not applicable.

3. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT

4. Consultation of interested parties

Interested parties concerned by the proceeding have had the possibility to defend their interests during the investigation, in line with the provisions of the basic Regulation.

- Collection and use of expertise

There was no need for external expertise.

- Impact assessment

This proposal is the result of the implementation of the basic Regulation.

The basic Regulation does not contain provisions for a general impact assessment but contains an exhaustive list of conditions that have to be assessed.

5. LEGAL ELEMENTS OF THE PROPOSAL

6. Summary of the proposed action

On 16 March 2010, the Commission announced the initiation of an expiry review of the anti-dumping measures applicable to imports of polyester staple fibres ('PSF') originating in the People's Republic of China.

The review was initiated following a substantiated request lodged by the European Man-made Fibres Association ('CIRFS') ('the applicant') on behalf of producers representing a major proportion, in this case more than 25% of the Union production of PSF.

The purpose of this investigation was to examine whether the expiry of measures would be likely to result in a recurrence of dumping and recurrence of injury to the Union industry.

In the course of the investigation, the applicant formally withdrew its request for an expiry review.

Following this withdrawal, the Commission has not identified arguments suggesting that Union interest might justify pursuing the review investigation and therefore suggests terminating the investigation and repealing the measures.

It is therefore proposed that the Council adopts the attached proposal for a Regulation which should be published in the Official Journal of the European Union at the earliest opportunity and in any event no later than 14 June 2011.

- Legal basis

Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community.

- Subsidiarity principle

The proposal falls under the exclusive competence of the European Union. The subsidiarity principle therefore does not apply.

- Proportionality principle

The proposal complies with the proportionality principle for the following reasons:

The form of action is described in the above-mentioned basic Regulation and leaves no scope for national decision.

Indication of how financial and administrative burden falling upon the Union, national governments, regional and local authorities, economic operators and citizens is minimized and proportionate to the objective of the proposal is not applicable.

- Choice of instruments

Proposed instruments: regulation.

Other means would not be adequate for the following reason:

The basic Regulation does not provide for alternative options.

7. BUDGETARY IMPLICATION

The proposal has no implication for the Union budget.

2011/0115 (NLE)

Proposal for a

COUNCIL REGULATION

terminating the anti-dumping proceeding on imports of polyester staple fibres originating in the People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community[2] ('the basic Regulation') and in particular Articles 9 and 11(2), (5) and (6) thereof,

Having regard to the proposal submitted by the European Commission ('the Commission') after having consulted the Advisory Committee,

Whereas:

8. PROCEDURE

9. Measures in force

Following an anti-dumping investigation carried out pursuant to Article 5 of the basic Regulation, the Council, by Regulation (EC) No 428/2005[3], imposed a definitive anti-dumping duty on imports of polyester staple fibres ('PSF') originating in the People’s Republic of China (‘PRC’). The rate of the anti-dumping duty ranged between 4.9% and 49.7% depending on the manufacturer of the product concerned.

10. Request for review

Following the publication of a notice of impending expiry[4] of the anti-dumping measures in force on imports of PSF originating in the People's Republic of China, the Commission has received on 14 December 2009 a request for review pursuant to Article 11(2) of the basic Regulation.

The request was lodged by the European Man-made Fibres Association ('CIRFS') ('the applicant') on behalf of Union producers representing a major proportion, in this case more than 25% of the Union production of PSF.

The request contained prima facie evidence showing that the expiry of the measures would be likely to result in a recurrence of dumping and injury to the Union industry.

11. Initiation

Accordingly, the Commission, after consultation of the Advisory Committee, announced, by a notice published in the Official Journal of the European Union[5] , the initiation of an expiry review proceeding concerning imports into the European Union of PSF originating in the People's Republic of China.

The Commission officially advised the exporting producers, importers concerned, the representatives of the People's Republic of China, the representative users and the Union producers of the initiation of the review investigation. Interested parties were given the opportunity to make their views known in writing and to request a hearing within the time limit set in the notice of initiation.

12. WITHDRAWAL OF THE REQUEST

By a letter dated 7 March 2011 to the Commission, the applicant formally withdrew its request.

In accordance with Article 9(1) and Article 11(2) of the basic Regulation, a proceeding may be terminated where the request for review is withdrawn unless such a termination would not be in the Union interest.

It was considered that the present proceeding should be terminated since the investigation had not brought to light any considerations showing that such termination would not be in the Union interest. Interested parties were informed accordingly and were given the opportunity to comment. However, no comments were received which could alter this consideration.

It was therefore concluded that the anti-dumping expiry review proceeding concerning imports into the Union of PSF originating in the People's Republic of China should be terminated and the existing measures should be repealed.

HAS ADOPTED THIS REGULATION:

Article 1

The anti-dumping measures concerning imports of synthetic staple fibres of polyesters, not carded, combed or otherwise processed for spinning currently falling within CN codes 5503 20 00 and originating in the People's Republic of China, are hereby repealed and the proceeding concerning these imports is terminated.

Article 2

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union .

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done in Brussels at […],

For the Council

The President

[1] OJ L 71, 17.03.2005, p.1.

[2] OJ L 343, 22.12.2009, p. 51.

[3] OJ L 71, 17.03.2005, p.1.

[4] OJ C 249, 17.10.2009, p. 19.

[5] OJ C 64. 16.3.2010, p. 10.