Proposal for a Council Regulation (EC) amending Council Regulation (EC) No 2160/96 imposing a definitive anti- dumping duty on imports of polyester textured filament yarn originating, inter alia, in Indonesia
Date: 1998-07-23
Institutions: European Commission
Subjects: Indonesia, anti-dumping duty, import, man-made fibre, textile fibre

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.07.1998 
COM(1998) 467  final 

Proposal for a 

COUNCIL REGULATION (EC) 

amending Council Regulation (EC) No 2160/96  imposing 
a definitive anti-dumping duty on imports of polyester textured 
filament yarn originating, inter alia, in Indonesia 

(presented by the Commission) 

EXPLANATORY MEMORANDUM 

The Council,  by  Regulation (EC) No 2160/961,  imposed a definitive  anti-dumping duty 
on imports of polyester textured filament yarn originating, inter alia, in Indonesia. 

Subsequent to an application lodged by an Indonesian exporter, PT Polyfin Canggih, the 
Commission opened a 'new exporter' review in accordance with Article  11(4) of Council 
Regulation (EC) No 384/962. 

The findings of the investigation show there to have been no dumping of exports of PTY 
to the Community made by the company  subject to the review during the investigation 
period. It is therefore proposed that Council Regulation (EC) No 2160/96 be amended so 
that the anti-dumping duty imposed by it shall not apply to PTY produced and exported 
by PT Polyfin Canggih. 

'OJL289,  12.11.1996, p. 14 

2 OJL 56, 6.3.1996, p.l 

X 

COUNCIL REGULATION (EC) N°.../98 

of 

....1998 

amending Council Regulation (EC) No 2160/96 imposing 
a definitive anti-dumping duty on imports of polyester textured 
filament yarn originating, inter alia, in Indonesia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  384/96  of  22  December  1995  on 
protection  against  dumped  imports  from  countries  not  members  of  the  European 
CommunityO), as last amended  by Regulation  (EC) No  905/98(2), and  in  particular 
Article  11 (4) thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the 
Advisory Committee, 

Whereas: 

A.  PREVIOUS PROCEDURE 

(1)  By Regulation (EC) No 2160/96(3), the Council imposed, inter alia, a definitive  anti 
dumping  duty  of  20,2% on  imports  of  polyester  textured  filament  yarn  (hereinafter 
'product concerned' or 'PTY') originating in Indonesia, with the exception of imports 
from  four  Indonesian  exporters  specifically  mentioned,  which  are either  subject  to a 
lesser rate of duty or to no duty at all. The product is currently classifiable  within CN 
codes 54 02 33 10 and 54 02 33 90. 

B.  PRESENT PROCEDURE 

(2)  The  Commission  subsequently  received  an application  for  a review  of the  measures 
currently in force, i.e. a request to initiate a 'new exporter'  review of Regulation (EC) 
No  2160/96,  pursuant  to  Article  11 (4)  of  Regulation  (EC) No  384/96  (hereinafter 
referred  to  as  the  'Basic  Regulation'),  from  the  Indonesian  producer  PT  Polyfin 
Canggih (hereinafter  referred to as 'the company'). 

1  OJL 56, 6.3.1996, p. 1. 
2  OJL  128, 30.4.1998, p. 18. 
3  OJ L 289,  12.11.1996, p.14. 

The company  claimed  that  it was  not  related  to any  of  the exporters  or  producers  in 
Indonesia  subject  to  the  anti-dumping  measures  in  force  with  regard  to  the  product 
concerned.  Furthermore,  it  claimed  that  it  had  not  exported  the  product  concerned 
during  the  original  period  of  investigation  (1  July  1993  to  30  June  1994)  but  had 
exported the product concerned to the Community since then. 

(3)  The  Commission,  after  having  examined  the  evidence  submitted  by  the  Indonesian 
exporter  concerned,  which  was  considered  sufficient  to  justify  the  initiation  of  a 
review  in  accordance  with  the  provisions  of  Article  11 (4)  of  the  Basic  Regulation, 
after  consultation  of  the  Advisory  Committee  and  after  the  Community  industry 
concerned  had  been  given  the opportunity  to comment,  initiated,  by Regulation  (EC) 
No 2544/97(4),  a  review  of  Regulation  (EC)  No  2160/96 with  regard  to  PT  Polyfin 
Canggih and commenced  its investigation. 

By  the  Regulation  initiating  the  review,  the  Commission  also  repealed  the  anti 
dumping duty imposed  by Regulation (EC) No 2160/96 with regard to imports of the 
product concerned, produced and exported to the Community  by PT Polyfin  Canggih, 
and directed customs authorities, pursuant to Article  14(5) of the Basic Regulation, to 
take appropriate steps to register such imports. 

(4)  The  product  covered  by  the  present  review  is  the  same  product  as  the  one  under 

consideration in Regulation (EC) No 2160/96. 

(5)  The  Commission  officially  advised  the  company  and  the  representatives  of  the 
exporting  country.  Furthermore,  it  gave  other  parties  directly  concerned  the 
opportunity  to make their views known  in writing and to request a hearing. However, 
no such request was received by the Commission. 

The Commission  sent a questionnaire to the company and received a full  reply within 
it  deemed 
the  deadline.  The  Commission  sought  and  verified  all  information 
necessary  for the purpose of the investigation, and carried out a verification  visit at the 
company's premises. 

(6)  The  investigation  of  dumping  covered  the  period  from  1  October  1996  to  30 

September  1997 (hereinafter  referred to as the 'investigation period'). 

(7)  The  same  methodology  as  that  used  in the  original  investigation  was  applied  in the 

present investigation. 

4OJNoL347,  18.12.1997, p.31. 

C. 

SCOPE OF THE REVIEW 

(8)  As no request  for  a  review  of  the findings on  injury  was  made  in  this  investigation, 

this review is limited to dumping. 

D.  RESULTS OF THE INVESTIGATION 

1. 

New exporter qualification 

(9)  The  investigation  confirmed  that  PT  Polyfin  Canggih  had  not  exported  the  product 
concerned during the original  period of investigation.  PTY production and  exports to 
the Community only started in the second half of 1994. 

to  documentary  evidence  submitted, 

Furthermore,  according 
the  company 
satisfactorily  demonstrated  that  it did  not  have any  links, direct  or indirect,  with  any 
of the Indonesian exporters subject to the anti-dumping measures in force with regard 
to the product concerned. 

Accordingly,  it is confirmed  that  PT Polyfin  Canggih should  be considered  as a new 
exporter  in  accordance  with  Article  11(4)  of  the  Basic  Regulation,  and  thus  its 
individual dumping margin should be determined. 

2. 

A. 

(10) 

Dumping 

Normal Value 

In accordance with Article 2 (2) of the Basic Regulation  it was examined whether the 
volume of the company's  sales of PTY on the domestic market constituted  overall at 
least  5% of the  volume of the exports of the  like product  to the Community.  In this 
respect, a number of transactions reported were found not to be of the like product and 
were therefore  excluded  from  the calculations. It was nonetheless established  that the 
volume of domestic sales of the  like product  was at a level considerably  in excess of 
the 5 % threshold mentioned above. 

For each type of PTY  exported  to the  Community,  it was then  examined  whether  or 
not there were representative domestic sales of identical or directly comparable types. 

For each type  of PTY, the  volume  sold  in Indonesia  during the  investigation  period 
represented  5% or more of the quantity of the comparable type of PTY sold for export 
to the Community. Domestic sales of each type exported were therefore  considered to 
have  been  made  in  sufficient  quantities  within  the  meaning  of  Article  2(2)  of  the 
Basic Regulation. 

r 

l'or  the purposes of examining whether sales of the like product had been made in the 
ordinary course of trade, information  supplied on cost of production was  verified. 

A  number  of  material  errors  in  the  costs  reported  by  the  company  were  corrected. 
Amounts for  exchange rate gains and losses, interest expenditure  and interest  income 
were also  adjusted. 

The Commission  subsequently  examined  whether the domestic  sales of  each type  of 
PTY  exported  to  the  Community  could  be  considered  to  have  been  made  in  the 
ordinary  course  of  trade,  pursuant  to  Article  2(4)  of  the  Basic  Regulation.  For  each 
product type, it was determined  that the volume of sales below unit cost was less than 
20% of total sales being used to determine normal value. 

All  domestic  sales  were  therefore  regarded  as  having  been  made  in  the  ordinary 
course of trade. In accordance with Article 2(1) of the Basic Regulation, normal  value 
was based  on the  weighted  average  prices of all  domestic  sales  of the  product  types 
corresponding to those exported to the Community. 

B. 

Export price 

(11)  Export prices were  established  on the basis of the prices actually  paid  or payable  for 
the  product  concerned  when  sold  for  export  to  independent  customers  in  the 
Community, in accordance with Article 2 (8) of the Basic Regulation. 

C.  Comparison 

(12)  In  accordance  with  Article  2(11)  of  the  Basic  Regulation,  the  weighted  average 
normal  value by product  type was compared, on an ex factory  basis, to the  weighted 
average export price at the same level of trade. 

For the purpose of a fair comparison, due allowance in the form of adjustments was 
made for differences  which were claimed and demonstrated to affect  prices and price 
comparability. These adjustments  were made, in accordance with Article 2(10) of the 
Basic Regulation, in respect of commissions, transport, insurance, handling and 
ancillary costs, credit costs, discounts and rebates. 

D.  Dumping margin 

(13)  The  comparison  showed  that  no  dumping  existed  for  exports  of  PTY  to  the 

Community made by PT Polyfin Canggih during the investigation period. 

6 

E.  AMENDMENT OF THE MEASURES BEING REVIEWED 

(14)  Based  on the findings of  no dumping  made during the investigation,  it  is considered 
that  imports  into  the  Community  of  PTY,  produced  and  exported  by  PT  Polyfin 
Canggih should not be subject  to an anti-dumping duty. Regulation (EC) No 2160/96 
should therefore  be amended accordingly. 

F. 

DISCLOSURE AND DURATION OF THE MEASURE 

(15)  PT  Polyfin  Canggih  was  informed  of  the  facts  and  considerations  on  the  basis  of 
which  it  is intended  to propose the amendment  of Regulation  (EC) No 2160/96, and 
was given the opportunity to comment. No comments were received. 

( 16)  The review carried  out does not affect  the date on which Regulation (EC) No 2160/96 

will expire pursuant to Article  11(2) of the Basic Regulation, 

HAS ADOPTED THIS REGULATION: 

Article  I 

Article  1(2) of Regulation (EC) No 2160/96 is hereby amended by adding the following to 
the end of the section on Indonesia : 

*  , as well as PT Polyfin Canggih (Taric additional code 8885)'. 

Article 2 

Customs authorities  are hereby  directed  to discontinue registration  pursuant  to Article  3 of 
Regulation (EC) No 2544/97. 

^ 

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 

1998 

For the Council 
The President 

r 

ISSN 0254-1475 

COM(98) 467  final 

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