Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 738/92 imposing a definitive anti-dumping duty on imports of cotton yarn, originating in Brazil and Turkey
Date: 1993-10-26
Institutions: European Commission
Subjects: Brazil, Türkiye, anti-dumping duty, dumping, import, textile fibre

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(93)  508  final 

Brussels,  26  October  1993 

Proposal  for  a 
COUNCIL  REGULATION  (EEC) 
amending  Regulation  (EEC)  No  738/92  imposing  a  definitive 
anti-dumping  duty  on  imports  of  cotton  yarn,  originating  in 
Brazil  and  Turkey 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

1. 

2. 

3. 

4. 

Council  Regulation  (EEC)  No  738/92  imposed  a  definitive  anti-dumping  duty  on 
imports  of  cotton  yam  falling  within  CN  codes  5205  11  00  to  5205  45  90  and 
5206  11 00 to  5206  45  90, originating  in  Brazil  and  Turkey. 

This  Regulation  stated  that  the  Commission  would  initiate  a  review  proceeding  for 
those  exporters  who  supplied  sufficient  evidence  to the Commission  to  show that  they 
had  not  exported  the  products  concerned  to  the  Community  during  the  original 
investigation  period  (1  January  to  31  December  1989),  that  they  subsequently  started 
such  exports  or  have  a firm  intention  of  doing  so,  and  that  they  are  not  related 
to, or  associated  with,  any  of  the  companies  subject  to  the  anti-dumping  duty 
(so-called  "newcomers") 

Four Brazilian companies and one Turkish company requested a newcomer investigation 
and  on  the  basis  of  the  evidence  submitted,  the  Commission  has  accordingly  initiated 
a  review  with  regard  to  these  companies. 

Normal  value has been  determined  either  on the basis of the comparable price  actually 
paid  or  payable  in  the  ordinary  course  of  trade  in  the  country  of  origin  or  by  adding 
cost of  production  and  a reasonable  amount  for  sales, general  and  administrative  costs 
and  profit. 

5. 

For  three  Brazilian  and  the  Turkish  producers,  export  prices  were  determined  on  the 
basis of  the prices  actually  paid  for  the  cotton  yam  sold  for  export  to the  Community. 

In the case of one Brazilian  producer  who  sold  exclusively  to  a related  importer  in the 
Community,  export  prices  were  constructed  on  the  basis  of  the  price  to  the  first 
independent  customer  in the  Community,  adjusted  to take  account of  all  costs  incurred 
between  importation  and  resale  and  for  a  reasonable  amount  of  profit. 

6. 

The  examination  of  the  facts  showed  the  following  dumping  margins: 

-  Brazil 

Cocamar Ltda. 
Corduroy  S.A. 
Cotece  S.A. 
Norfil  S/A. 

-  Turkey 

12.3% 
11.7% 
10.9% 
8.7% 

Kula  Mensucat  Fabrikasi  AS. 

8.4% 

7. 

No  request for review of  the findings on  injury  was made. 

In  accordance  with  Article  13(3) of  Regulation  (EEC)  No ?A2?*IM.  «i.i.  .-'i«.«-  i c* r  .1 
dumping  duties  should  not  exceed  the  dumping  margni  established  s» <i K^  ;^o  iT ;  ih 
lesser  doty  would  be  adequate  to  remove  the  injury. 

found 

In  the  present  case,  since  the  dumping  margins  established  are  lower  than  the  injuiy 
that 
margins 
Regulation  (EEC)  No  738/92 of 23 March  1992 be amended  and  that the level  of  duly 
applicable to each of the five companies concerned be the level of the dumping margin? 
established. 

the  Commission  proposes 

the  original  proceeding, 

in 

Proposal  for  a 
COUNCIL  REGULATION  (EEC) 
amending  Regulation  (EEC)  No  738/92  imposing  a  definitive 
anti-dumping  duty  on  imports  of  cotton  yarn,  originating  in 
Brazil  and  Turkey 

THE  COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community, 

Having regard to Council Regulation  (EEC) No 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  Article  14  thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consultation  within  the 
Advisory  Committee  as provided  for  under  the  abovementioned  Regulation, 

Whereas: 

A.  PREVIOUS  PROCEDURE 

(1)  By Regulation  (EEC) No 738/92(2), the Council  imposed  a definitive  anti-dumping duty 
on  imports  of  cotton  yarn  falling  within  CN  codes  5205  11  00  to  5205  45  90  and 
5206  11 00 to  5206  45  90, originating  in  Brazil  and  Turkey. 

(2) 

In  that  Regulation  the  Council  noted  that  the  Commission  would  be  ready  to  initiate 
without  delay  a review  proceeding  for  the  exporters  who  supplied  sufficient  evidence 
to the Commission that they had not exported the products concerned to the Community 
during the original investigation period (1 January to 31 December  1989), that they only 
started  such  exports  after  the  said period  or  have  a firm  intention  of  doing  so  and  that 
they  are  not  related  to,  or  associated  with,  any  of  the  companies  subject  to  the  anti 
dumping  duty  (so-called  "newcomers"). 

B. REVIEW 

(3) 

Four Brazilian  companies, Cocamar Ltda., Corduroy  S.A.,  Cotece S.A.,  Norfil  S/A.  and 
a  Turkish  company,  Kula  Mensucat  Fabrikasi  AS.,  made  themselves  known  to  the 
Commission,  claiming  that  they  had  not  exported  the  products  concerned  during  the 
investigation  period and  only  commenced  doing so after  that period. They  also claimed 
that  they  were  not  related  to  any  of  the  companies  subject  to  the  anti-dumping  duties 
and  requested  that  a  newcomer  review  be  opened. 

(i) 

(2) 

O J N o L 2 0 9,  2.8.1988,  p. 1 
O J N o L 8 2,  27.3.1&92, p.  1. 

(4)  Those companies provided, on request, evidence of the facts they alleged. The evidence 
provided  has  been  considered  sufficient 
to  justify  the  initiation  of  a  review  in 
accordance  with  the  provisions of  Articles  7 and  14 of  Regulation  (EEC) No  2423/88 
to  as  "the  Basic  Regulation").  By  a  notice  published  on 
(herinafter  referred 
23  September  1992(3), the Commission,  after  consultation  of  the  Advisory  Committee, 
initiated  a  review  of  Regulation  (EEC)  No  738/92  with  regard  to  the  five  companies 
cited  above  and  commenced  its  investigation. 

C  RESULT OF  INVESTIGATION 

1.  Normal  value 

(5)  Normal  value  has been  determined  on  the  basis of  the  comparable  price  actually  paid 
or payable in the ordinary  course of trade for the like product intended for  consumption 
in  the  country  of  origin  when  sales  on  the  domestic  market  were  representative  and 
profitable. 

When  there  were no  such  sales, normal  value has  been  constructed  in  accordance  with 
Article  2(3)(b)(ii)  of  the  Basic  Regulation  by  adding  cost  of  production,  including  a 
reasonable  amount  for  sales, general  and  administrative  costs  and  a margin  for  profit. 
In  the  case  of  non-profitable  sales  in  Brazil,  their  margin  was  based  on  the  average 
profit  of  the  domestic  sales of  the product  concerned  of the other  exporting  producers. 

2.  Export  price 

(6) 

lot  tluee  liia/lliaii  produce»?; ami the  Iwlhli  pimfmc-r,  ^pm»  p«h«^  weie tleteimiMed 
by the  Commission  on  the  basis of  the  prices  actually  paid  for  the cotton  yam  sold  for 
export  to  the  Community. 

In  the  case  of  one  Brazilian  producer  which  sold  exclusively  to  a  related  importer  in 
the  Community,  export  prices  were  constructed  pursuant  to  Article  2(8)(b)  of  the 
Basic  Regulation  and  were  therefore  based  on  the  price  to  the  first  independent 
customer  in  the  Community,  adjusted  to  take  account  of  all  costs  incurred  between 
importation  and  resale  and  for  a  reasonable  amount  of  profit. 

3.  Comparison 

(7) 

For  the  purpose  of  a fair  comparison  between  normal  value  and  export  price,  account 
was taken  of  differences  affecting  price  comparability  in  accordance  with  Article  2(9) 
and  (10)  of  the  Basic  Regulation,  namely  commissions,  credit  terms,  transport, 
insurance, handling, packing  and other related  costs. Export prices, on a transaction-by-
transaction basis, were compared  with normal  value at ex-works level, at the same level 
of  trade. 

(3) 

OJ  No  C  244,  23.9.1992, p.  14. 

4.  Dumping  margin 

(8)  The  examination  of  the  facts  showed  the  existence  of  dumping  with  respect  to  the 
cotton yarn  exported  by the five  companies. The margins of dumping, being equal to 
the  amount  by  which  normal  value  exceeds  the  price  for  export  to  the  Community, 
expressed  as a percentage of total  CIF value, were as follows: 

-  Brazil 

CocamarLtda. 
Corduroy  S.A. 
CoteceS.A. 
Norfil  S/A. 

-  Turkey 

12.3% 
11.7% 
10.9% 
8.7% 

Kula Mensucat Fabrikasi  A.S. 

8.4% 

5.  Injury 

(9)  No  request  for  review  of  the  findings  on  injury  was  made  and  there  is no  reason  to 

doubt the validity  of the injury  findings  in the original  investigation. 

D. AMENDMENT OF THE REVIEWED MEASURES 

(10)  In accordance with  Article  13(3) of the Basic Regulation, the amount of anti-dumping 
duties should not exceed the dumping margin established and be less if such lesser duty 
would be adequate to remove the  injury. 

In  the present  case, since the  dumping  margins  established  are  lower  than  the  injury 
margins  found 
that 
Regulation  (EEC) No 738/92 should be amended and that the level of duty applicable 
to each of the five  companies  concerned  should be the level  of the dumping margins 
established  (see recital (9)). 

the  Commission  considers 

the  original  proceeding, 

in 

(11)  The  five  exporting  companies  and  the  complainant  have  been  informed  of  those 

findings  and have raised no  objection. 

(12)  Since  the  review  is  limited  to  one  Turkish  and  four  Brazilian  producers,  it  does not 
affect  the  date  on  which  Regulation  (EEC)  No  738/92  will  expire  pursuant  to 
Article  15(1) of the Basic Regulation, 

HAS  ADOPTED  THIS  REGULATION: 

Article 1 

Article  1(2) of Regulation  (EEC)  No  738/92  is hereby  amended  as  follows: 

1. 

Under (a) the following  is added: 

Cocamar 
Cooperativa  de  Cafeicultores 
e  Agropecuaristas  de Maringâ Ltda. 

12.3% 

8735 

Corduroy  S.A. 

Indûstrias Têxteis 

Cotece  S.A. 

Norfil  S/A. 
Indûstria Têxtil 

11.7% 

8736 

10.9% 

8.7% 

8737 

8738 

2. 

Under  (b) the following  is added: 

Kula Mensucat  Fabrikasi  AS. 

8.4% 

8739 

Article  2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  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  Council 
The President 

ISSN 0254-1475 

COM (93) 508 final 

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