PROPOSAL FOR A COUNCIL REGULATION ( EEC ) MODIFYING THE ANTI-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
Date: 1989-09-15
Institutions: European Commission
Subjects: Mexico, man-made fibre, restoration of customs duties, tariff preference

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 

i 

- 2 -

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) 
CN ex 5501 30 00 (tow) 
CN ex 5506 30 00 (tops) 

12.6% 
19.2% 
18.0% 

<> 

- 3 -

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 

4-

Proposal  for  a 
ormrcn.  KHBoiAmif  fgnm 

modifying  the  anti-dumping  measures  applicable  to  imports  of  oertal 

aorylio  fibres  originating  in  Mexico  by  introducing  an  a n t i 

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. 

- 2 -

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. 

- 3 -

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 

? 

-  4  -

(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 

importer 

(o) 
-  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. 

y; •  I.I>:<;':fj>:«v«  '*HW 

(a)  Wnrml  vahift 

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 

(b) 

Btpcrrt  ppinflfl 

-  3  -

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 

crontaer  value, 

are  as  rouows 

1 
| 
1 

Producers/ 
flixpfflpters 

i 
| 

Staple 
car ex 
8600 30  00 

i 
[ 

Tow 
Off  ex 

|  6601  3000 

Tops 
Of  ex 
8806  30  00 

i 
| 
| 
| 

iRtbras  Sinteticas 

see  others 

19.23ft 

see  others 

| 

|Oelulosa y  Derivados 

12.6** 

13.39% 

8.76% 

iCrisol  Textil 

see  others 

see  others 

18.07% 

| Others 

• 

12.64* 

19.23% 

18.07% 

| 

| 

| 

• 

1-

- 6 -

II.  o n ro 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. 

that since the 

14.  The information acquired by the Commission  w****** 
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. 

/* 

- 7 -

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. 

M 

-  8  -

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  s t i ll  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. 

n 

- 9 -

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  X e s l l S t lO  tO  aOCept  tbOOO  nwrtorfculH r^gp,  «Bilfl  i st 
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. 

13 

-  10  -

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) 
-  CH ex  8801 30 00  (tow) 
-  Of ex  8806 30 00  (tops) 

12.0% 
19.2% 
18.0% 

P.  Final provision 

21.  m  the interests of legal certainty. Article K o) 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 

- 11 -

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 

-  CH ex 8801 30 00 

-  CH ex 8606 30 00 

12.6% 

19.2% 

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 

- 12 -

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 

n 

EN 

Catalogue number : CB-CO-89-408-EN-C 

ISBN 92-77-52930-X 

Office for Official Publications of the European Communitie» 

L-2985 Luxembourg