Proposal for a Council and Commission Decision on the conclusion of the Europe Agreement between the European Communities and their Member States on the one hand and Hungary on the other
Date: 1992-02-10
Institutions: European Commission
Subjects: European integration, Hungary, association agreement (EU), cultural cooperation, economic cooperation, financial cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

C0M(91)  327  f i n al 

Brussels,  21  August  1991 

Proposal 

for  a 

COUNCIL  REGULATION 

(EEC) 

a m e n d i ng  R e g u l a t i on 

r e p e a l i ng 

i m p o s ed  on 
of  p o l y e s t er 

t he  d e f i n i t i ve 
i m p o r ts 
y a rn  o r i g i n a t i ng 

i n to 

t he  C o m m u n i ty 

in  M e x i c o. 

( E E C)  N * 3 9 0 5 / 88 
a n t i - d u m p i ng 

a nd 
d u ty 

(presented  by  the  Commission) 

s'fll ;. 

I"  »,»*;£**& 

EXPLANATORY  MEMORANDUM 

1. Following  a  request  lodged  in  September  1990  by  several  exporters 

from  Mexico,  the  Commission  announced,  in  November  1990,  the 

initiation  of  a  review  of  anti-dumping  measures  concerning  imports 

of  polyester  yarn originating  in Mexico,  in accordance with  Article 

14  of  Council  Regulation  (EEC)  N'  2423/88,  and  commenced  an 

invest igat ion. 

2. The measures under  review were  anti-dumping duties of  15.8% on non-

textured  partially  oriented  filament  yarn  (POY)  and  anti-dumping 

duties  ranging  from  5.8%  to  26.7%  on  textured  polyester  yarn 

filament  (PTY),  imposed by Council  Regulation  (EEC) N*  3905/88. This 

regulation  also  imposed  duties on  polyester  yarn  from  South  Korea, 

Taiwan and Turkey, which  are not part of  the present  case. 

3. a) 

In  calculating  dumping,  normal  value  has  been  established  on 

the basis of  the price actually paid or payable  for  the product 

sold  on  the  domestic  market.  In  the  case  of  two  exporters, 

domestic price was consistently and substantially below cost of 

production  during  the  investigation  period.  In  these  cases, 

normal  value  was  based  on  cost  of  production  plus  domestic 

profit  from  other  exporters.  Export  prices  were  based  on  the 

price  paid  or  payable  for  the  product  exported  to  the 

Community. 

b)  Normal  values  (calculated  on  a  monthly  average  bases)  and 

export  prices  (brought  to  ex-factory  level) were  compared  for 

the  corresponding  month  on  a  transaction-by-transaction basis. 

With  the exception of one exporter  of PTY, whose dumping margin 

(0.53%)  is,  according  to  a  consistent  practice  cf  the 

Commission,  considered  to be  de  minimis, no  dumping  wa~  found 

as regards  imports of PTY and POY originating  in Mexico. 

-  2 -

The  investigation  has  therefore  demonstrated  that  imports  of 

polyester  yarn  originating  in  Mexico  are  no  longer  being  dumped. 

The Council  notes  that  this absence of dumping,  in the presence of a 

significant  volume  of  imports,  has  come  about  as  a  result  of  a 

durable  change  in  the  behaviour  of  the  exporters,  notably  in  the 

area of pricing policy. 

In  view  of  these  changed  circumstances,  it  is  proposed  that  the 

definitive  anti-dumping  duty  imposed  by  Regulation  (EEC) N'  3905/88 

on  imports  originating  in  Mexico  be  repealed.  The  provisions  of 

Regulation  (EEC)  N*  3905/88  which  relate  to  imports  of  the  same 

product  originating  in South  Korea, Taiwan  and  Turkey  should  remain 

unchanged.  Furthermore,  it  should  be  noted  that  this  amendment, 

which  relates  only  to  imports  originating  in Mexico,  has  no  effect 

on  the  date  on  which  the  definitive  anti-dumping  duty  imposed  on 

imports  of  polyester  yarn  originating  in  South  Korea,  Taiwan  and 

Turkey  shall  lapse.  This date  continues  to be based  on  the  date of 

entry  into force of Regulation  (EEC) N" 3905/88. 

-4* fei«> 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic 

Community, 

Having  regard  to Council  Regulation  (EEC) N" 2423/88 of  11 July  1988 on 

protection  against  dumped  or  subsidized  imports  from  countries  not 

members  of  the  European  Economic  Community*1)  and  in  particular 

Art icle 14 thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after 

consultations  within  the  Advisory  Committee  as  provided  for  under  the 

above Régulât ion, 

Whereas, 

A. PROCEDURE 

In November  1990 the Commission  announced  by a notice published  in 

the  Official  Journal  of  the  European  Commun!ties<2)  the 

initiation of a review of anti-dumping measures concerning  imports 

of  polyester  yarn  originating  in  Mexico,  in  accordance  with 

Article  14  of  Regulation  (EEC)  N"  2423/88  and  commenced  an 

investigation.  The  measures  in  question  consisted  of  definitive 

duties on  imports  of  polyester  yarn  originating  in Mexico  imposed 

by Council  Regulation  (EEC) N' 3905/88*3>. 

(1) OJ  N- L 209 2/08/1988, p. 1 
(2) OJ  N" C 289  17/11/1990, p. 7. 
(3) OJ  N* L 347 16/12/1988, p. 10. 

-  3 -

2.  The  proceeding  was  initiated  as  a  result  of  a  request  lodged  in 

September  1990  by  several  exporters  in  Mexico.  The  request 

alleged  changed  circumstances  since  the  imposition  of  the 

definitive  anti-dumping  duty.  In particular,  it was  alleged  that 

imports  of  polyester  yarn  from  Mexico  to  the  Community  were  now 

being  made  at  non-dumped  prices.  The  evidence  contained  in  this 

request  was considered  sufficient  to justify opening  a proceeding. 

3.  The  Commission  officially  advised  the  exporters  known  to  be 

concerned,  the  representatives  of  the  exporting  country  and  the 

complainant  in  the  original  proceeding,  the  Comité  International 

de  la Rayonne  et  des  Fibres  Synthétiques  (CIRFS) representing  the 

Community  industry, and gave  the parties concerned  the opportunity 

to make  their  views known  in writing and  to request  a hearing. 

4.  The exporters  and CIRFS made  their  views known  in writing. 

5.  The  Commission  sought  and  verified  all  information  it  deemed 

necessary  for  the  purposes  of  this  proceeding  and  carried  out 

investigations  at  the  premises  of  the  following  Mexican 

producers/exporters: 

Fibras Quimicas SA, Monterrey, Mexico 

Nylon de Mexico SA, Monterrey, Mexico 

Kimex  SA, Mexico City 

Fibras Sinteticas SA, Mexico City 

Celanese Mexicana SA, Mexico City 

6.  The  investigation of  dumping  covered  the period  1 January  1990 to 

30 September  1990  (the  investigation  period). 

-  4 -

B.  PRODUCTS UNDER CONSIDERATION 

(i) Definition of  products 

7.  The  products  concerned  are  non-textured  partially  oriented 

filament  yarn  (POY),  falling  within  CN  Code  5402  42  00,  and 

textured  polyester  yarn  filament  (PTY),  falling  within  CN  Codes 

5402 33 10 and 5402 33 90. 

(ii) Description of  products 

8.  POY  is  used  to  produce  PTY  and  other  types  of  yarn.  PTY  of 

varying  quality  is  produced,  and  there  are  several  different 

types. 

9.  Three qualities of PTY are produced 

1st Quality: Mechanically perfect, guaranteed  for  dyeing 

2nd Quality: Mechanically  perfect,  not  guaranteed  for  dyeing 

("whites only") 

3rd Quality: Lower  quality yarn 

The proportion  of  each  quality  produced  depends on  the  efficiency 

of  the production  process.  The exporters  are  producing  all  three 

qua I it ies of PTY. 

-  5 -

10.  There  are  different  types  of  PTY.  The  relative  thickness  and 

weight  of  PTY  is expressed  in units of  1 dtex, which  is equal  to 

the  weight  in  grams  of  10.000  metres  of  yarn.  (It  is  also 

sometimes  expressed  in  denier,  of  which  1.1  equals  1  dtex). 

Therefore  the  yarn  becomes  finer  as  the  number  of  dtex  becomes 

smaller. 

Furthermore,  every  type  of  yarn  contains  a  certain 

number  of  constituent  filaments,  given  a  certain  dtex.  The 

greater  the  number  of  filaments, the  greater  is the  value  of  the 

yarn. 

C. DUMPING 

(I) Normal  value 

11.  Normal  value was  calculated  separately  for each  month  (in view of 

the high  inflation  rate  in Mexico) and for each different  type and 

quality of yarn.  (Recitals  10 and 11). 

12.  In general, normal  value was established on the basis of  the price 

actually  paid  or  payable  for  the  product  sold  on  the  domestic 

market. 

13.  In the case of  two exporters, domestic  price was  consistently  and 

substantially  below  cost  of  production  during  the  investigation 

period.  In these  cases  it was  considered  appropriate  to establish 

a  constructed  normal  value  in accordance with  Article  2(3)(b)(ii) 

of  Regulation  (EEC)  n"  2423/88  using  these  companies'  costs  of 

production  plus  a  profit  (6%), equivalent  to  that  realised  by 

other  Mexican  exporters  on  profitable  sales  in  the  domestic 

market, which was considered  to be a reasonable  level of profit. 

- 6 -

(il) Export price 

14.  Export  prices  were  determined  on  the  basis  of  the  price  actually 

paid or payable  for  the product exported  to the Community. 

(i i i) Comparison 

15.  The  normal  value  per  type  and  quality  (calculated  on  a  monthly 

average  basis)  was  compared  with  export  prices  of  the  same  type 

and  quality  for  the  corresponding  month  on  a  transaction-by-

transaction  basis.  Requests  for  allowances  were  accepted  with 

regard  to differences  affecting  price  comparability  and  bearing  a 

direct  relationship  to the sales under  consideration and  for which 

satisfactory  evidence was submitted.  All  comparisons were made at 

the ex-factory  level. 

(iv) Dumping  margins 

16.  With  the  exception  of  one  exporter  of  PTY, whose  dumping  margin 

(0.53%)  is,  according  to  the  consistent  practice  of  the 

Commission,  considered  to be  de  minimis, no  dumping  was  found  as 

regards  imports of PTY and POY originating  in Mexico. 

17.  The Council  confirms the conclusions of  the Commission  relating  to 

dump i ng. 

- 7 -

C. CONCLUSION 

(i) Repeal of ant I-dumping measures 

18.  The  investigation  has demonstrated  that  imports of  polyester  yarn 

from  Mexico  are  no  longer  being  dumped.  The  Council  notes  that 

this  absence  of  dumping,  in  the  presence  of  a  significant  volume 

of  imports, has  continued  over  a  substantial  period  and  has  been 

repeated  on  export  markets  outside  the  Community.  The  Council 

therefore  concludes  that  there  has  been  a  durable  change  in  the 

behaviour  of  the  Mexican  exporters,  particularly  in  the  area  of 

pricing  policy.  In  view  of  these  changed  circumstances,  the 

Council  considers  that  the  anti-dumping  measures  concerning 

imports  of  polyester  yarn  originating  in Mexico  are  now  neither 

justified nor necessary  and should  therefore be  repealed. 

19.  The exporters and  the complainant  requested, and were granted, the 

opportunity  to be heard by  the Commission. 

At  their  request,  the  exporters  and  the  complainant  were  also 

informed of  the essential  facts and considerations on  the basis of 

which  it was  proposed  to  recommend  the  repeal  of  the ant I-dumping 

measures,  concerning  imports  of  polyester  yarns  originating  in 

Mex i co. 

The  parties  were  granted  a  period  within  which  to  make 

representation  on  any  of  the  above  matters  subsequent  to 

disclosure.  Where  appropriate,  their  comments  were  taken  into 

considérât ion. 

- 8 -

20.  Since  the  imports  orginating  in  South  Korea,  Taiwan  and  Turkey 

were of such  importance  that  they have to be considered  to have by 

themselves cumulatively caused material  injury during  the original 

investigation  period,  the  repeal  of  the  anti-dumping  measures 

concerning  imports of  polyester  yarn originating  in Mexico  cannot 

have  any  effect  on  the  continuing  validity  of  the  anti-dumping 

measures  imposed  on  imports  of  the  same  product  originating  in 

South Korea, Taiwan and Turkey. 

(ii) Amendment  to Regulation  3905/88 

21.  Regulation  (EEC) N"  3905/88  relating  to  imports of  polyester  yarn 

originating  in  Mexico,  South  Korea,  Taiwan  and  Turkey,  should 

accordingly  be  amended  in order  to  repeal  the  definitive  anti 

dumping  duty  imposed  by  that  regulation  on  imports originating  in 

Mex ico. 

22.  The  provisions  of  Regulation  (EEC)  N*  3905/88  which  relate  to 

imports of  the same product originating  in South Korea, Taiwan and 

Turkey  should  remain unchanged. 

23.  This  amendment,  which  relates  only  to  imports  originating  in 

Mexico,  should  have  no  effect  on  the  expiry  of  the  definitive 

anti-dumping  duty  imposed on  imports of polyester  yarn originating 

in South Korea, Taiwan and Turkey. 

The  prospective  date  on  which  the  measures  concerning  these 

countries  shall  lapse should  continue  to be based  on  the date of 

entry  into force of Regulation  (EEC) n* 3905/88, 

- 9 -

HAS ADOPTED THIS REGULATION 

ARTICLE I 

Article  1  (1)  of  Regulation  (EEC)  N"  3905/88  is  hereby  amended  to 

exclude  the reference  to "Mexico". 

Article  1  (2)  of  Regulation  (EEC)  N*  3905/88  Is  hereby  amended  to 

exclude the following paragraph: 

-  "15.8%  for  POY  originating  in Mexico  excluding  yarn  produced  and 

sold  for  export  to  the Community  by  Celanese Mexicana  SA, Mexico 

City, which  shall  not be subject  to such a duty;" 

ARTICLE  2 

Article  2  (1)  of  Regulation  (EEC)  N'  3905/88  is  hereby  amended  to 

exclude  the reference  to "Mexico". 

Article  2  (2)  of  Regulation  (EEC)  N'  3905/88  is  hereby  amended  to 

exclude  the following paragraph: 

-  "26.7%  for  PTY originating  in Mexico.  The  following duties shall 

be applicable  to PTY produced  and sold  for export  to the Community 

by  the companies  listed below: 

-  Celanese Mexicana SA, Mexico City 

-  Fibras Quimicas SA, Monterrey 

-  Kimex SA, Mexico City 

15.9% 

5.8% 

18.7%;" 

The  remainder of Regulation  (EEC) 3905/88 shall  remain unchanged. 

-  10 

ARTICLE  3 

This  Regulation  shall  enter  into  force  on  the  day  following  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 CounciI 

ISSN 0254-1475 

COM(91) 327 final 

DOCUMENTS 

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ISBN 92-77-75479-6 

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