COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(89) 433 final 
Brussels, 15 September 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
modifying the ant I-dumping measures applicable to imports of certain 
acrylic fibres originating in Mexico by Introducing an anti-dumping 
duty on goods other than those from named exporters whose 
undertakings are accepted 
(presented by the Commission) 
One proposed draft regulation is based on Article 14 of Regulation (ESC) 
No 2423/88 and its purpose is to modify the anti-dumping measures 
introduced by the Council Decision of 22 September 1986. 
Investigations carried out by the Commission in response to a request by 
the Community industry for a review under Article 14 confirmed that imports 
of acrylic fibre originating in Mexico were still being dumped and that, as 
alleged, the measures introduced in 1986 were intrinsically inadequate to 
eliminate the injury to the Community industry identified by the Council in 
its 1986 Decision. 
In this connection our findings showed that imports of acrylic fibre, far 
from stabilizing or declining as a result of the Council measures under 
review, had substantially increased in volume (by 1 565.51% from 1985), 
while the price had fallen from an average of ECU 1 620/tonne in 1985 to 
ECU 1 437/tonne in the first four months of 1988. 
These two facts - the substantial increase in imports and the fall in 
prices - and the scale of the undercutting are in themselves enough to 
justify modification and strengthening of the 1986 measures so that the 
Council's aim of eliminating the Injury ascertained in 1986, in the 
interests of the Community, can finally be attained. 
The situation of the Community industry has not improved since 1985. Its 
sales have fallen while sales of the Mexican products have increased. The 
good results recorded in 1986 by Community producers as a whole were 
generally eroded in 1987, so that over the reference period and in the 
first quarter of 1988 some firms started to make losses. The figures for 
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the reference period show that the prices of imports originating in Mexico 
were not only lower than Community producers' prices, but would not have 
enabled those producers to cover their costs plus a reasonable profit 
margin. 
Celulosa y Derivados, Crisol Textil, Flnaoril, Fihras Sintetioas and R & M 
International Sales Corporation were informed of the main findings of the 
Investigation and offered undertakings concerning their sales to the 
Camraunity. The effect of these undertakings would be to raise prices to a 
level considered acceptable to enable the Community industry to earn an 
adequate return and continue in business, and hence to eliminate the injury 
to that industry as established in the Chn**?*1 T^yr^on of 
22 September 1986. In view of the small number of companies concerned the 
Commission has concluded that aooeptance of the undertakings is realistic. 
It is in addition a constructive measure which takes into account Mexico's 
situation as a developing country. 
In order not to leave any loopholes and to prevent a recurrence of the 
events which led to the initiation of this review, the Commission considers 
that an antidumping duty should be imposed on sales of the product to the 
Community by exporters other than those named above. This will be an 
ad valorem duty set at a rate reflecting the gap between the minimum 
threshold price within the Community at which the Community industry can 
earn a return sufficient to continue In business and the prices at which, 
according to the facts available, the goods in question have been imported. 
Expressed as a percentage of the net price of the product free at Community 
frontier, before duty and in no case exceeding the established dumping 
margin, this would give: 
CN ex 5503 30 00 (staple) 12.6% 
CN ex 5501 30 00 (tow) 19.2% 
CN ex 5506 30 00 (tops) 18.0% 
<> 
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In the light of the above considérations and those set out in the 
accompanying draft, the Commission has prepared a draft Council regulation 
modifying the anti-dumping measures applicable to imports of certain 
acrylio fibre products originating in Mexico. 
Article 2(1) of the regulation makes imports of these products into the 
Community subject to an anti-dumping duty. Article 2(3), however, waives 
the duty in respect of direct exports to the Community by a number of named 
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Proposal for a 
ormrcn. KHBoiAmif fgnm 
modifying the anti-dumping measures applicable to imports of oertal 
aorylio fibres originating in Mexico by introducing an anti­
dumping duty on goods other than those from named exporters 
whose undertakings are accepted 
THE OOQMCEL OF THE EUROPEAN (XMMDNITCES, 
Saving regard to the Treaty establishing the European Eoonomio Communis 
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 OJ 
protection against dumped or subsidized imports from countries not mem) 
of the European Koononrto Community,1 and In particular Article 14 titer* 
Having regard to the proposal fro» the Cnmrissirm, submitted after 
consultation within the Advisory Committee as provided for by that 
Regulation, 
Whereas: 
A. Prooedure 
1. In June 1985 the CcmrlBRlan Initiated an anti-dumping proceeding 
concerning imports into Hie Community of certain aorylio fibres origlnati 
in Israel, Mexico, Romania and Turkey.3 
1 OJ NO L 209, 2.8.1968, p. 1. 
2 OJ NO C 189, 29.6.1965, p. 2. 
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2. By Decision 88/471/EBCP the Council accepted uniertaklngs regarding 
imports originating in Mexico from Celanese Mexioana SA (Mexico DF) and 
Celulosa y Derivados SA de CV (Guadalajara), and therefore terminated fre 
Investigation in respect of those firms. 
3. Early In 1988 the International Rayon and Synthetic Fibres Committee 
(IRSFC), acting on behalf of producers accounting for virtually the entire 
Community output of the fibre products oonoerned, asked the Commission to 
review the anti-dumping measures applicable to imports of certain acrylio 
fibres originating in Mexico and to reopen the anti-dumping investigation. 
The Advisory Committee having been consulted, it was felt that the request 
contained sufficient evidence of changed ciroumstanoes to warrant a review 
of the said measures under Article 14 of Regulation (EEC) No 2176/84.4 
4. The Onmrnlsfiion therefore pihUshnrt a notice In the Official Journal of 
the European Communities8 announcing a review of the measures and 
reopening of the investigation with reference specifically to the alleged 
dumping and pricing of the imports, in the light of the claim that the 
measures are Inadequate to eliminate the injury to the Community industry 
as established in Decision 86/471/EBC. The review oonoerns Imports of: 
acrylio staple fibres, not carded, combed or otherwise prepared for 
spinning, falling with OT code ex 5503 30 00 (formerly Common Customs 
Tariff snhheartlng 06.01 A and NIMEXE code 06.01-10), known as staple; tow 
of acrylio fibres falling within CN code ex 5601 30 00 (formally Common 
Customs Tariff winheadlng 56.02 A and NBffiXB code 66.02-10), known as tow; 
3 OJ NO L 272, 24.9.1966, p. 29. 
4 OJ NO L 201, 30.7.1964, p. 1. 
0 OJ No C 117, 4.0.1968, p.3. 
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and acrylic staple fibres, carded, combed or otherwise prepared for 
spinning, falling within CS code ex 0006 30 00 (formerly Common Customs 
Tariff subheading 06.04 A and KQfBXB code 06.04-10), known as aorylio tops. 
The Commission officially so advised the producers/exporters and importers 
known to be concerned, the representatives of the producing oountr/, the 
complainant and Community producers and gave the parties directly ooncemed 
the opportunity to make known their views In writing and to request a 
hearing. 
Most of the Community producers, the producers/exporters and one Importer 
made known their views in writing. A number of them asked for and were 
granted a hearing. 
No oomments were submitted by purchasers/users of the product. 
0. The Commission gathered and verified all the information it considered 
necessary to establish the facts and carried out Inspections at the 
premises of the following: 
(a) flrwiBïïi11ry produoflra 
- Bayer AG, I4verkusen, Federal Republic of Germany 
- Ctourtaulds Fibres SA, Barcelona, Spain 
- Oourtaulds Fibres Ltd, Coventry, united Kingdom 
- Courtaalds SA, Ooquellee, France 
- TMohem Fibre Spa» San Donato Milanese, Italy 
- Fibres SJntetloas de Portugal SARL, Barreiro, Portugal 
- Hoeohst âû9 Frankruxt-em-Maln, Federal Republic of Germany 
—. MontefjU3FO mspanla &A, BarO"*^(^i Spain 
- Monteflbre Spa, Milan, Italy 
- SHIA Fibre Spa, Oesano Maderno, Italy 
? 
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(b) Pwrfuofipg/exportgrs 
- Celulosa y Derivados SA de CV, Guadalajara, Mexico 
- Fibres Sintetlcas SA de CV, Mexico DP, Mexico 
- Fibras Naalonalee de Aorilioo SA de CV (Flnacril), Mexico OF, Mexico 
- R 9 M International Sales Corporation, Philadelphia, United States 
(o) importer 
- mprotex SA, Barcelona, Spain 
(d) Qtbex 
- Celanese Mexloana SA, Mexico DP, Mexico 
- Kaltex, Mexico DP, Mexico 
6. The Investigation Into dumping and price differences covered the period 
from 1 November 1967 to 30 April 1968. 
7. Those parties which cooperated fully with the Investigation were 
informed of the main facts and considérations on the basis of which the 
Ormrt selon proposed to modify or reocmiieTil the mortification of the 
anti-dumping measures applicable to Imports of the products concerned 
originating In Mexico. They were given time to submit any oomments. 
B. Dumping 
I. 
(a) Wnrml vahift y; • I.I>:<;':fj>:«v« '*HW 
8. The ^^i value for each fibre product was established on the basis of 
the weighted average of the prloes actually paid or payable in the ordinary 
course of trade for like products Intended for consumption on the Mexican 
market. 
f 
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(b) Btpcrrt ppinflfl 
9. For each product the export prices were rmflcpitf** on the basis of the 
prices actually paid or payable for goods sold for export to the Community. 
(O) nnHfrATHflop, 
10. In comparing normal value with export prices the Commission made 
allowance, where appropriate, for differences affecting price 
comparability, such as credit terms, transport, insurance, vmnrtUng and 
ancillary costs. Due account was taken of these differences where claims 
for such adjustment were found to be justified. All comparisons were made 
at the ex-works stage. 
(d) ÛBKdDgJBVglnS 
11. Upon examination of the facts it appeared that the goods were still 
being dumped, the dumping margin being equivalent to the difference between 
the normal value and the export prices, duly adjusted. 
The dumping margins established in this way, ezpi'oor.wl as a percentage of 
1 
| Producers/ 
1 flixpfflpters 
iRtbras Sinteticas 
|Oelulosa y Derivados 
iCrisol Textil 
| Others 
• crontaer value, 
i 
| Staple 
car ex 
8600 30 00 
see others 
12.6** 
see others 
12.64* are as rouows 
i 
[ Tow 
Off ex 
| 6601 3000 
19.23ft 
13.39% 
see others 
19.23% i 
Tops | 
Of ex | 
8806 30 00 | 
see others | 
8.76% | 
18.07% | 
18.07% | 
• 
1-
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II. onro PTrrnrRRS/gggBTBRg 
12. Where the Information supplied by the producers/exporters was 
Insufficient to establish a precise dumping margin for one or other of the 
fibre products, the margin for such product(s) was established on the basis 
of the facts available, in accordance with Article 7(7)(b) of Regulation 
2423/88. 
In this connection the Commission considered that if it allowed the above 
prodnoers/exporters' dumping margins on such produot(s) to be lower than 
the highest margin identified by the investigation procedure, this would 
provide a means of escaping the duty. 
C. Injury and inadequacy of measures taken In the light of import 
trends and urloos 
13. Material injury attributable to Imports originating In Mexico was 
established by Decision 86/471/KBC. It was found that the measures then 
adopted had not eliminated the injury. 
14. The information acquired by the Commission w****** that since the 
finding was made imports of all these fibre products originating In Mexico 
have increased, from 722 tonnes in 1968 and 7 618 tonnes in 1966 to 
12 026 tonnes in 1987, following the lzxtrodnotlon of the anti-dumping 
measures - an increase In absolute terms of 67.88% from 1966 and 1 866.81% 
from 1986. Imports in the first four months of 1968 totalled 2 783 tonnes. 
Assuming that they continued at the same rate for the remaining eight 
months of that year, they would have totalled 8 289 tonnes, 8.41% up on 
1966 and 1 043.91% up on 1968. 
/* 
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Regarding import prices, our information shows that the average price for 
all the fibre products had fallen from BOO 1 620/toxme In 1988 and 
ECO 1 660/tonne in 1986 to approximately SCO 1 486/torme in 1987 and 
BOO 1 437/tonne In the first four months of 1988, down 10.12% and 11.3% 
respectively from the 1988 prices which themselves, it will be recalled, 
were low enough to justify the adoption of defensive measures against 
imports from Mexico. 
18. The figures for the reference period show that the prices of Imports 
originating In Mexico were not only lower than Community producers' prices 
(undercutting them by an average of over 18%, net of customs duty), but 
fell short of their average production costs. Since 1968 the Community 
industry has lost market share to Mexican producers. Between 1988 and 
1987, while the producers/exporters of the Mexican products were Increasing 
their sales in the Community, Community producers saw their sales fall. If 
the figure for their sales in the first four months of 1988 are 
extrapolated for the rest of the year this would represent a deal 1 ne of 
9.8% from the 1988 sales volume. The good results recorded in 1986 by 
Community producers as a whole were generally eroded in 1987, so that over 
the reference period and, in particular, in the first quarter of 1988 some 
firms started to make losses. 
16. One substantial rise In Imports, the fall in prices resulting in 
significant undercutting and the worsening financial position of the 
Community producers show sufficiently that the defensive measures 
introduced in 1966 are not adequate to eliminate the injury being caused to 
the Community by Imports originating In Mexico, as definitively established 
In the Council Decision of 22 September 1966. 
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This is due *p+wT *""* to the fact that undertakings other than those named 
in Decision 86/471/BBC have been exporting the goods to the Community and 
to the 20%-plus depreciation of the US dollar against most European 
currencies since the price undertakings given In dollars by the named 
exporters were accepted, making those undertakings inadequate. 
No Information was found to suggest that the situation of the Community 
industry and the inadequacy of the existing measures were due to other 
factors such as the volume and price of Imports originating in other third 
oountries, Including those named in the earlier proceeding. 
D. Community interest and conclusion 
17. In the light of the above and given that the earlier finding of 
dumping is still valid, it is necessary to tighten up the existing measures 
to ensure that their initial aim of eliminating Injury to the Ocmmunity 
industry, in the Ooranunity Interest, can finally be achieved. 
The substantial restructuring carried out by the Community's man-made fibre 
industry In the last decade and the considerable investment undertaken by 
some Community producers on environmental protection measures will be 
pointless at Community level unless backed up by measures to provide the 
Industry with adequate protection against dumping by any outside 
producers/exporters • 
AoooTdingly, the existing measures concerning imports of these products 
originating in Mexico introduced by Pyrt^™ 88/471/BBC must be revised and 
replaced by those Indicated below. 
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E. Modification of existing anti-dumping measures 
I. PRICE UffiEKTAffTffiifi 
Celulosa y Derivados, Crisol Textll, Finaorll, Floras Sinteticas and R 9 M 
International Sales Corporation were informed of the main findings of the 
investigation and offered undertakings concerning their export sales to the 
Community. 
The effect of these undertakings will be to raise the price of exports to 
the Community to a level considered acceptable to eliminate the dumping 
margins or at any rate to enable the Community Industry to earn an adequate 
return and continue in business, and hence to eliminate the Injury to that 
industry. 
In view of the small number of oompanles concerned, the Commission 
nrmn1iiri<|rf 1-fc WOUld be XesllStlO tO aOCept tbOOO nwrtorfculH r^gp, «Bilfl ist 
moreover, a constructive measure which takes Into account Mexico's 
situation as a developing country. 
Accordingly, the undertakings which have been offered should be accepted 
and the review should be terminated without imposing an anti-dumping duty 
on the im.'odufœrfl/expotrtflffl concerned. 
re. zszac 
19. In order not to leave any loopholes and to prevent a recurrence of the 
events which led to the Initiation of this review, an anti-dumping duty 
should be imposed on sales of these products to the Ocamunity by exporters 
other than those named above; this would apply to all imports of the 
products oonoerned originating in Mexico, sold for export to the Community 
by companies other than those from which a price undertaking has been 
accepted. 
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To facilitate customs oleaTanoe the CrmrnlBBlon considers that this rfv^ld 
take the form of an ad valorem, duty. 
20. The duty will be set at a rate reflecting the gap between the minimum 
threshold price within the Community at which the Community industry can 
earn a return sufficient to continue in business and the prices at which, 
according to the facts available, the goods In question have been imported. 
In no case will it exceed the established dumping margin. 
Fxi'irofjpol as a percentage of the net price of the product free at Community 
frontier, before duty, this would give: 
- CH ex 8803 30 00 (staple) 12.0% 
- CH ex 8801 30 00 (tow) 19.2% 
- Of ex 8806 30 00 (tops) 18.0% 
P. Final provision 
21. m the interests of legal certainty. Article Ko) and (d) of 
Decision 66/468/EBC should be repealed with effect from the entry into 
farce of this Regulation, 
BAS ADOPTED THI8 RBOuIAUCM: 
Artlnlft 1 
1. A definitive antt-dumping duty is hereby ijmxjsed on ±aport» o^ 
staple fibres, not carded, combed or otherwise prepared for spinning, 
falling within CH code ex 8303 30 00, tow of aorylio fibres falling within 
CH oode ex 8601 30 00 and aorylio fibres carded, combed or otherwise 
prepared for spinning (tops) falling within Of code ex 8606 30 00, 
originating in Mexico. 
/4 
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2. The duty, expiooood as a percentage of the net 
free-at-Oommunit^-frontier price of the product before duty, shall be: 
- CH ex 8603 30 00 12.6% 
- CH ex 8801 30 00 19.2% 
- CH ex 8606 30 00 18.0% 
Free^t-Community^frontier prices shall be net if the conditions of sale 
provide for payment within thirty days of the date of consignment. They 
shall be Increased or reduced by 1% for each month's Increase or decrease 
in the period for payment. 
3. The duty shall not apply to the products referred to in paragraph 1 
exported direct to the Community by: 
- Celulosa y Derivados SA de CV, Guadalajara, Mexico 
- Crisol TGrtil, Mexico DF. Mexico 
- Fibres Kadonales de Acrilioo SA de CV (Flnaoril), Mexico DF, Mexico 
- Fibres Sintetloas SA de CV, Mexico DF, Mexico 
- RIM International Sales Corporation, Philadelphia, united States of 
whose price undertakings are hereby accepted. 
4. The provisions in force concerning customs duties shall apply. 
/5T 
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Article 2 
Subparagraphs (o) and (d) of Article 1 of Décision 86/4667EBC are hereby 
repealed. 
Artilfflft ff 
This Regulation shall enter Into force on the day following that of its 
TÉIK^ 1 option 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 
n 
ISSN 0254-1475 
COM (89) 433 final 
DOCUMENTS 
EN n 
Catalogue number : CB-CO-89-408-EN-C 
ISBN 92-77-52930-X 
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