Council Regulation (EC) No 1992/2000 of 18 September 2000 amending Regulation (EC) No 1001/97 imposing a definitive anti-dumping duty on imports of polyester textured filament yarn originating in Malaysia
Date: 2000-09-18
Institutions: Council of the European Union
Subjects: CCT duties, Malaysia, anti-dumping duty, import, textile fibre

22.9.2000

EN

Official Journal of the European Communities

L 238/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1992/2000

of 18 September 2000

amending Regulation (EC) No 1001/97 imposing a definitive anti-dumping duty on imports of
polyester textured filament yarn originating in Malaysia

THE COUNCIL OF THE EUROPEAN UNION,

C. PROCEDURE

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 Community (1), and in
particular Article 11(3) thereof,

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

Whereas:

(1)

(2)

A. EXISTING MEASURES

By Regulation (EC) No 1001/97 (2), the Council imposed
a definitive anti-dumping duty on imports of polyester
textured filament yarn originating in Malaysia. The rate
of the duty applicable to the net, free-at-Community-
frontier price, before duty,
for the
company Hualon Corporation (M) Sdn. Bhd. (Hualon),
for which a 16,4 % rate applies.

is 32,5 % except

B. REQUEST FOR A REVIEW

The Malaysian exporting producer, Hualon Corporation
(M) Sdn. Bhd., lodged a request for an interim review of
the anti-dumping measures applicable to it limited to the
aspects of dumping pursuant to Article 11(3) of Regula-
tion (EC) No 384/96 (hereinafter referred to as the ‘basic
Regulation’). The request alleged that changed circum-
stances of a lasting nature have led to a stable or slightly
reduced normal value and a considerable increase of its
export price so that the continued imposition of meas-
to it was no longer necessary to counteract
ures
dumping. Having determined, after
consulting the
Advisory Committee, that sufficient evidence existed for
the initiation of an interim review the Commission
published a notice in the Official Journal of the European
Communities (3) and commenced an investigation.

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 905/98 (OJ L 128, 30.4.1998, p. 18).

(2) OJ L 145, 5.6.1997, p. 1.
(3) OJ C 218, 30.7.1999, p. 5.

(3)

(4)

(5)

(6)

(7)

(8)

The investigation of dumping covered the period from 1
July 1998 until 30 June 1999 (hereinafter referred to as
the ‘investigation period’).

The Commission officially advised the authorities of the
exporting country of the initiation of the interim review
and gave all parties directly concerned the opportunity
to make their views known in writing and to request a
hearing.

The Commission sent a questionnaire and received
detailed information from the
exporting producer
concerned.

The Commission sought and verified all information it
deemed necessary for the purpose of a determination of
dumping and carried out a verification visit at
the
premises of the exporting producer concerned.

The interested parties were informed of the facts and
considerations on the basis of which it was intended to
recommend the amendment of Regulation (EC) No
1001/97, and were given an opportunity to comment.
Their comments were taken into account and, where
appropriate, the findings were modified accordingly.

D. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

1. Product under consideration

The product under consideration is the same as in the
previous investigation,
i.e. polyester textured filament
yarn (hereinafter referred to as ‘PTY’). PTY is directly
derived from partially oriented polyester yarn, and is
used in both the weaving and the knitting sectors to
make polyester or polyester/cotton fabrics. The product
is currently classifiable within CN code 5402 33 00. It
that Regulation (EC) No
should be noted, however,
and
1001/97
5402 33 10
refers
5402 33 90 which were applicable for
the product
classification at the time that Regulation was published.

to CN codes

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Official Journal of the European Communities

22.9.2000

(9)

types of PTY, depending on the
There are different
weight (‘denier’), the number of filaments and the lustre.
There are also different qualities, depending on the effi-
ciency of the production process. However, no signifi-
cant differences exist in the basic characteristics and uses
of the different types and qualities of PTY. All types of
PTY have been and are considered as one product for
the purposes of this investigation.

2. Like product

(10) As in the previous investigation, this investigation has
shown that the PTY produced in Malaysia by Hualon
and sold on the Malaysian market or exported to the
Community has the same basic physical and chemical
characteristics and the same uses, and therefore, is to be
considered a like product within the meaning of Article
1(4) of the basic Regulation.

E. DUMPING

1. Normal value

(11) As

far as

the determination of normal value

is
concerned, it was first established whether Hualon's total
domestic sales of the like product were representative in
comparison with its
to the
total
Community. In accordance with Article 2(2) of the basic
Regulation, this was found to be the case since domestic
sales volume of Hualon was at least 5 % of its total sales
volume to the Community.

export

sales

(12)

(13)

For each of the types sold by Hualon on its domestic
market and found to be directly comparable to the ten
types sold for export to the Community, it was exam-
ined whether domestic sales were sufficiently repres-
entative for the purposes of Article 2(2) of the basic
Regulation. This was considered to be the case when,
during the investigation period, the total domestic sales
volume of a type represented 5 % or more of the total
sales volume of
the same type exported to the
Community.

For those product types meeting the 5 % test, an exam-
ination was also made as to whether the domestic sales
of each of these types could be regarded as having been
made in the ordinary course of trade, by establishing the
proportion of sales to independent customers of the
type in question not made at a loss. In cases where sales
of a type, not made at a loss, represented more than
80 % of the total domestic sales volume of that type,
normal value was based on a weighted average price of
all domestic sales made during the investigation period.
In cases where the volume of sales, not made at a loss,
of a type represented at least 10 %, but less than 80 % of
the total domestic sales volume of that type, normal

value was based on a weighted average price of the sales
not made at a loss only.

(14) As a result of the methodology set out above, normal
value for five types of PTY exported to the Community
during the investigation period could be based on the
domestic selling prices of comparable types of PTY.

(15)

For the remaining five product types exported to the
it was
Community during the investigation period,
found that the volume of domestic sales was lower than
5 % of the volume exported to the Community. Thus,
domestic sales of the five product types were considered
insufficient within the meaning of Article 2(2) of the
basic Regulation. For these types, normal value was
constructed on the basis of the costs of manufacturing
incurred by Hualon for the exported product type in
question plus a reasonable amount for selling, general
and administrative costs (‘SG & A’) and profits in accord-
ance with Article 2(3) and (6) of the basic Regulation.
The SG & A were based on Hualon's domestic sales of
the like product. The profit margin was based on the
Hualon's domestic sales of the like product made in the
ordinary course of trade.

(16) Hualon claimed that in calculating constructed normal
value the profit of profitable domestic sales of certain
types which were also exported to the Community
should only be used. The claim was rejected because
Article 2(6) of the basic Regulation provides that profits
shall be based on actual data pertaining to production
and sales in the ordinary course of trade of the like
product.

2. Export price

(17)

Since all export sales of the product under consideration
were made directly to independent customers in the
Community, the export price was established in accord-
ance with Article 2(8) of the basic Regulation on the
basis of the prices paid or payable.

3. Comparison

(18)

For the purposes of a fair comparison by type on an
ex-factory basis and at the same level of trade, due
allowance was made for differences which were claimed
and demonstrated to affect price comparability. These
adjustments were made in respect of transport, insur-
ance, handling, loading and ancillary costs, credit and
commissions in accordance with Article 2(10) of the
basic Regulation.

4. Dumping margin

(19)

The comparison was made between the weighted
average normal value per product type and the weighted
average export price for the same product
in
accordance with Article 2(11) of the basic Regulation.

type,

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(20)

(21)

(22)

The comparison as described above showed the exis-
tence of dumping for the company concerned. Due to
the varying dumping margins of the different product
types, an overall weighted average dumping margin was
established in accordance with Article 2(12) of the basic
Regulation. The dumping margin established, expressed
as a percentage of the total cif value at Community
frontier level, duty unpaid,

is 3,2 %.

The dumping margin of this investigation, however, is
considerably lower in comparison with the dumping
margin established for the company concerned during
the previous investigation, which amounted to 16,4 %.

F. LASTING NATURE OF CHANGED CIRCUMSTANCES

In accordance with Article 11(3) of the basic Regulation,
it was examined whether the changed circumstances that
have led to the decrease of the dumping margin could
be reasonably said to be of lasting nature. In this respect,
it was found in particular that the production of PTY
over the period 1996 to the investigation period has
decreased considerably as raw materials were diverted to
new production lines of other polyester yarns. Also,
internal consumption of PTY increased significantly over
the same period as it was directed to increase the
production of products with higher added value. These
two changes have decreased the volume of
sales
(domestic and export) of the product concerned signifi-
cantly over the same period. These changes in the
production and sales policies of the company are viewed
as evidence that it is unlikely that there will be a recur-
rence of dumped exports at levels similar to those estab-
lished in the previous investigation.

(24)

This review does not affect the date on which the meas-
ures imposed by Regulation (EC) 1001/97 will expire
pursuant to Article 11(2) of the basic Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Article 1 of Regulation (EC) No 1001/97 shall be replaced by
the following:

‘Article 1

1.
A definitive anti-dumping duty is hereby imposed on
imports of PTY falling within CN code 5402 33 00 and
originating in Malaysia.

2.
The rate of the definitive anti-dumping duty applic-
able to the net, free-at-Community-frontier price, before
duty, shall be as follows:

Malaysia

Duty

TARIC additional
code

Hualon Corporation (M) Sdn.
Bhd.,
Level 9, Wisma Goldhill, 67,
Jalan Raja Chulan,
50200 Kuala Lumpur, Malaysia

3,2 %

8933

Others

32,5 %

8900

G. AMENDMENT OF MEASURES

(23)

In view of the finding of a lower dumping margin for
the company concerned and as this situation is not
considered to be of a short-term nature, measures
imposed by Regulation (EC) No 1001/97 on exports of
this company should be amended by amending that
Regulation accordingly.

Unless otherwise specified, the provisions in force

3.
concerning customs duties shall apply.’

Article 2

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Commu-
nities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 18 September 2000.

For the Council

The President

H. VÉDRINE