1999/351/EC: Commission Decision of 27 May 1999 terminating the countervailing duty proceeding on imports of polypropylene binder or baler twine originating in Saudi Arabia (notified under document number C(1999) 1356)
Date: 1999-05-27
Institutions: European Commission
Subjects: Saudi Arabia, anti-subsidy proceeding, import, originating product, plastics, wire

L 133/62

EN

Official Journal of the European Communities

28. 5. 1999

COMMISSION DECISION

of 27 May 1999

terminating the countervailing duty proceeding on imports of polypropylene
binder or baler twine originating in Saudi Arabia

(notified under document number C(1999) 1356)

(1999/351/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 2026/97 of
6 October 1997 (1) on protection against
subsidised
imports from countries not members of the European
Community, and in particular Article 14 thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

1. Initiation

(1)

(2)

(3)

(4)

Following a complaint lodged on 12 June 1998 by
Eurocord on behalf of producers representing a
major proportion of the Community production of
polypropylene binder or baler twine, the Commis-
sion
proceeding
concerning imports of these products originating
in Saudi Arabia (2).

anti-subsidy

initiated

an

The complaint contained evidence of subsidisation
of the said product, and of material injury resulting
therefrom, which was considered sufficient
to
justify the initiation of a proceeding.

2. Investigation

The Commission officially advised the exporting
producers and importers known to it, the Govern-
ment of the Kingdom of Saudi Arabia and the
complainant Community producers of the initia-
tion of
the proceeding. Interested parties were
given the opportunity to make their views known
in writing and to request a hearing. All parties who
so requested were granted a hearing.

The Commission sent questionnaires
to the
government of the exporting country, all known
exporting producers and importers, as well as to the
complainant Community producers.

(5)

The Commission sought and verified all the in-
formation it deemed necessary, and carried out

(1) OJ L 288, 21.10.1997, p. 1.
(2) OJ C 233, 25.7.1998, p. 25.

verification visits at the premises of the following
companies:

(a) Complainant Community producers

(cid:190) Teufelberger, Linz, Austria
(cid:190) Ostend Stores, Oostende, Belgium
(cid:190) Cordex, Esmoriz, Portugal
(cid:190) Cotesi, Carvalhos, Portugal
(cid:190) Exporplas, Cortegaca, Portugal
(cid:190) Sicor, Cortegaca, Portugal
(cid:190) Pippo Tuote Oy, Outokumpu, Finland
(cid:190) Irish Ropes, Kildare, Ireland

(b) Government of the Kingdom of Saudi Arabia

The Government of
the Kingdom of Saudi
Arabia submitted a completed questionnaire
response which was verified in Riyadh. The
ministries/agencies involved were:

(cid:190) Ministry of Finance and National Economy
(cid:190) Saudi Arabian Monetary Agency
(cid:190) Department of Zakat and Income Tax
(cid:190) Ministry of Industry and Electricity
(cid:190) Ministry

Petroleum and Natural

of

Resources

(cid:190) Saudi Industrial Development Fund
(cid:190) Ministry of Commerce
(cid:190) Ministry of Planning
(cid:190) Saudi Airlines
(cid:190) General Ports Corporation

(c) Exporting producer

Saudi Yarn and Knitting Technology Factory
(Synthec), a division of NAFA Enterprises Ltd,
Riyadh.

The investigation period for the determination of
subsidization was from 1 January 1997 to 31
December 1997. The examination of injury covered
the period from January 1994 to the end of the
investigation period. Both periods coincide with
the same periods used to carry out the investigation
of
concerning
imports of polypropylene binder or baler twine
originating in the Czech Republic, Hungary and
Saudi Arabia (see Section C below).

anti-dumping proceeding

the

28. 5. 1999

EN

Official Journal of the European Communities

L 133/63

(6)

(7)

(8)

(9)

B. PRODUCT UNDER CONSIDERATION AND
LIKE PRODUCT

1. The product under consideration

The product under consideration is polypropylene
binder or baler twine (hereinafter referred to as
‘twines'). These twines are used in the agricultural
sector, notably for binding bundles to be picked up
similar machines. The
by automatic balers or
product is manufactured in different thicknesses
(runnages) and with different
in
respect of, for example, knot and tensile strength,
number of twists/turns per meter, colour, ultra-
violet stabilisation and fibrillation. The investiga-
tion has shown that, notwithstanding the different
thicknesses and specifications of the product under
consideration, all twines constitute a single product
for the purposes of the investigation. The product
under consideration is currently classifiable within
CN code ex 5607 41 00.

specifications

2. Like product

Twines produced and sold by the Community
industry on the Community market were found to
be alike to the imports from the exporting country
concerned in their basic physical and technical
characteristics and in their uses. The same is true
with regard to the product manufactured and sold
on the domestic market of the exporting country
concerned. All these products are, therefore, like
products, as defined by Article 1(5) of Regulation
(EC) No 2026/97 (hereinafter referred to as ‘the
basic Regulation').

C. RELATED ANTI-DUMPING PROCEDURE

a

producers

On 28 February 1998 (1), subsequent to the lodging
complaint by Eurocord on behalf of
of
Community
a major
proportion of the Community production of twines
in January 1998, the Commission announced the
initiation
proceeding
concerning imports of twines originating in the
Czech Republic, Hungary and Saudi Arabia.

anti-dumping

representing

an

of

In view of the findings of the investigation as set
out in Council Regulation (EC) No 603/99 (2) (see
recital 68 and seq.) which are based on the same
investigation period as the present
investigation
and thus on the same price and cost information
provided by the exporting producer and the
Community industry, the proceeding concerning
imports originating in Saudi Arabia was terminated
by Commission Decision 1999/215/EC (3) without
the imposition of measures.

(1) OJ C 65, 28.2.1998, p. 8.
(2) OJ L 75, 20.3.1999, p. 1.
(3) OJ L 75, 20.3.1999, p. 34.

D. DEVELOPING COUNTRY STATUS

(10) While Saudi Arabia is not a member of the WTO,
the Basic Regulation, in particular Article 14(5)(a)
thereof, does not differentiate between Members
and non-Members. For the purposes of the WTO
Agreement on Subsidies and Countervailing Meas-
ures, Saudi Arabia would normally be treated as a
developing country.

E. SUBSIDIES

(11)

the

the

findings of

Since
investigation (see
Section F) showed that the injury caused by the
sole Saudi Arabian exporting producer was consid-
ered to be negligible, it was not necessary to estab-
lish findings relating to subsidies.

F. INJURY

(12) On the basis of

the methodology described in
recital 71 of Council Regulation (EC) No 603/99
and, as set out in recital (9), using identical price
and cost data, the injury caused by the sole Saudi
exporting producer was also considered to be negli-
gible during the investigation period in the present
investigation. In any event, the injury margin is
below 2 %, which is the de minimis threshold for
developing countries established by Article 14(5)(a)
of the basic Regulation.

G. CONCLUSION

shall be

(13) Article 14(3) of the basic Regulation provides that
there
a
proceeding where it is determined that the injury is
considered negligible. It is therefore proposed that
the proceeding be terminated,

termination of

immediate

HAS ADOPTED THIS DECISION:

Sole Article

The countervailing proceeding concerning imports into
the Community of polypropylene binder or baler twine of
polyester fibres currently classifiable within CN code
ex 5607 41 00 and originating in Saudi Arabia is hereby
terminated.

Done at Brussels, 27 May 1999.

For the Commission

Leon BRITTAN

Vice-President