Council Regulation (EC) No 2010/2000 of 18 September 2000 further amending Regulation (EEC) No 3905/88 as regards definitive anti-dumping duties on imports of polyester yarn originating in Taiwan and Turkey
Date: 2000-09-18
Institutions: Council of the European Union
Subjects: Taiwan, Türkiye, anti-dumping duty, dumping, import, man-made fibre

26.9.2000

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Official Journal of the European Communities

L 241/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2010/2000

of 18 September 2000

further amending Regulation (EEC) No 3905/88 as regards definitive anti-dumping duties on
imports of polyester yarn originating in Taiwan and Turkey

THE COUNCIL OF THE EUROPEAN UNION,

(4)

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 from the Commission after
consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. EXISTING MEASURES

By Regulation (EEC) No 3905/88 (2), which was further
amended by Regulation (EC) No 1074/96 (3) the Council
imposed a definitive anti-dumping duty on imports of
polyester textured filament yarn originating in Taiwan
and Turkey.

B. REQUEST FOR A REVIEW

A request for an interim review of Regulation (EC) No
1074/96 by which the Council further amended Regula-
tion (EEC) No 3905/88 was received from LeaLea Enter-
prise Co. Ltd.
(hereinafter referred to as ‘LeaLea’), a
Taiwanese exporting producer of the product concerned
subject to the anti-dumping measures in force.

This request pursuant to Article 11(3) of Regulation (EC)
No 384/96 (hereinafter referred to as the ‘basic Regula-
tion’), claimed a change in circumstances on the basis of
which the measures in force were established to justify
the initiation of a review. According to the request, a
better production efficiency that led to a lasting drop in
production costs reduced LeaLea's normal value. At the
same time, LeaLea's export prices have increased. LeaLea
claimed that, therefore, the existing measures should be
repealed insofar as they apply to it.

(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 347, 16.12.1988, p. 10.
(3) OJ L 141, 14.6.1996, p. 45.

As the request contained sufficient prima facie evidence,
the Commission, after having consulted the Advisory
Committee, decided to initiate an interim review (4) of
Regulation (EC) No 1074/96.

(5)

This interim review was limited in scope to the exam-
ination of dumping of LeaLea.

C. PROCEDURE

(6)

(7)

(8)

(9)

The period of
investigation of dumping covered the
period from 1 April 1998 to 31 March 1999 (herein-
after referred to as the ‘investigation period’).

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

A submission was
received from The International
Rayon and Synthetic Fibres Committee, i.e. the complai-
nant in the original case.

The Commission services
sent a questionnaire and
received detailed information from LeaLea as well as
from one of its related companies.

(10)

The Commission services sought and verified all infor-
mation they deemed necessary for the purpose of a
determination of dumping and carried out investigations
at the premises of the following companies:

— LeaLea Enterprise Co. Ltd., Taipei, Taiwan

— Solelytex Industrial Corporation, Taipei, Taiwan, i.e.

producer related to LeaLea.

(11)

The interested parties were informed of the facts and
considerations on the basis of which it was intended to
recommend a further amendment of Regulation (EC) No
3905/88 and were given an opportunity to comment.
No comment was received within the deadline set for
that purpose.

(4) OJ C 143, 21.5.1999, p. 4.

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D. PRODUCT UNDER CONSIDERATION AND LIKE

(17)

PRODUCT

1. Product under consideration

(12)

(13)

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
should be noted, however, that the Council Regulation
imposing definitive measures
to CN codes
5402 33 10 and 5402 33 90 which were applicable for
the product classification at the time the Regulation was
published.

refers

There are different
types of PTY, depending on the
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

(14) As in the previous investigation, this investigation has
shown that the PTY produced in Taiwan by LeaLea and
sold on the Taiwanese 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 CALCULATION

For the 10 product types meeting the 5 % test, an exam-
ination was also made as to whether the domestic sales
of each type could be regarded as having been made in
the ordinary course of trade, by establishing the propor-
tion 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 (i. e.
four types). In cases where the volume of sales of a type
not made at a loss represented at least 10 %, but not
more 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 (i. e. five types).

For the product types where the volume of domestic
sales was lower than 5 % of the volume exported to the
Community (i. e. four types), or where the volume of
domestic sales not made at a loss was less than 10 %
(i. e. one type), domestic sales of these 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 LeaLea for the exported
product type in question plus a reasonable amount for
selling, general and administrative costs (‘SG&A’) and
profits in accordance with Article 2(3) and (6) of the
basic Regulation. The SG&A were based on LeaLea's
domestic sales of the like product. The profit margin
was based on LeaLea's domestic sales of the like product
made in the ordinary course of trade.

(18)

2. Export price

(19)

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 prices paid or payable.

1. Normal value

3. Comparison

(15) As

far as

the determination of normal value

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

export

sales

(20)

The comparison was made on an ex-factory basis and at
the same level of trade. For the purpose of ensuring a
fair comparison, account was taken, in accordance with
Article 2(10) of the basic Regulation, of differences in
factors which were claimed and demonstrated to affect
prices and price comparability, i.e. transport costs, insur-
ance costs, handling, loading and ancillary costs, credit
costs and commissions.

(16)

For each of the types sold by LeaLea on its domestic
market and found to be directly comparable to the types
exported to the Community, it was examined whether
domestic sales were sufficiently representative for the
purposes of Article 2(2) of the basic Regulation. This
was considered to be the case when, during the invest-
igation 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.

4. Dumping margin

(21)

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

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(22)

The comparison as described above showed the exis-
tence of a de minimis dumping for LeaLea (i. e. a
dumping margin of 0,3 %).

F. LASTING NATURE OF CHANGED CIRCUMSTANCES

(23)

In accordance with Article 11(3) of the basic Regulation,
it was also examined whether the changed circumstances
could reasonably be said to be of a lasting nature. In this
respect, it was found that LeaLea's output had consider-
ably increased as compared to the original investigation
period (i. e. 1 July 1993 until 30 June 1994) due to the
setting up in 1997 of its own production facilities for
both polymers and partially oriented yarn. The use of
partially oriented yarn produced in-house led to a signif-
icant drop in production costs and a related fall
in
domestic prices of PTY which, together with an increase
in export prices, can, at least partly, be considered as a
lasting change.

G. CONCLUSION

(24)

(25)

(26)

The investigation found that dumping during the invest-
igation period has been reduced to a de minimis level due
to a fall in the normal value and an increase in export
prices. These changes are considered to be of a lasting
nature. This is particularly the case in respect of the
reduction in the normal value, which is due to a better
production efficiency that
led to a lasting drop in
production costs.

In the light of the foregoing, the Council considers that
the measures currently in force for LeaLea should be
repealed.

Since the repeal of the measures concerns only LeaLea,
and not Taiwan as a whole, LeaLea remains subject to
the proceeding and may be reinvestigated in any subse-
quent review carried out for Taiwan pursuant to Article
11 of the basic Regulation,

HAS ADOPTED THIS REGULATION:

Article 2 of Regulation (EEC) No 3905/88 shall be replaced by the following:

‘Article 2

Article 1

A definitive anti-dumping duty is hereby imposed on imports of polyester textured filament yarn

1.
(PTY) falling within CN code 5402 33 00 originating in Taiwan and Turkey.

The rate of the duty applicable to the net, free-at-Community-frontier price, before customs

2.
clearance, shall be as follows:

Country

Manufacturer

Rate of duty

Additional TARIC code

Taiwan

Nan-Ya Plastics Corporation, Taipei

10,6 %

Shingkong Synthetic Fibres Corp., Taipei

Zig Sheng Ind. Co., Ltd, Taipei

Far Eastern Textiles Ltd, Taipei

Chung Shing Textile Co., Ltd, Taipei

Tuntex Distinct. Corp., Taipei

Hsin Pao Textile Co., Ltd, Taipei

LeaLea Enterprise Co., Ltd, Taipei

Others

Turkey

Sasa-Artificial and Synthetic Fibres Inc., Adana

Nergis-Tekstil Sanayi Ve Ticaret A.S., Bursa

Korteks-Mensucat Sanayi Ve Ticaret A.S., Bursa

Others

7 %

7 %

6,6 %

5,5 %

0 %

0 %

0 %

16,1 %

8,7 %

8,3 %

7,6 %

15,2 %

8162

8163

8163

8894

8161

8160

8160

8160

8164

8166

8167

8892

8170

3.

Unless otherwise specified, the provisions in force concerning customs duties shall apply.’

This Regulation shall enter into force on the day following its publication in the Official Journal of the
European Communities.

Article 2

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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