Proposal for a Council Regulation amending Regulation (EC) No 1950/97 imposing a definitive anti-dumping duty on imports of sacks and bags made of polyethylene or polypropylene originating, inter alia, in India
Date: 2000-12-04
Institutions: European Commission
Subjects: India, anti-dumping duty, originating product, packaging product, plastics

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 4.12.2000
COM(2000) 808 final

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1950/97 imposing a definitive anti-dumping duty on
imports of sacks and bags made of polyethylene or polypropylene originating, inter alia,
in India

(presented by the Commission)

EXPLANATORY MEMORANDUM

Subject: New exporter review with regard to the anti-dumping proceeding
sacks and bags made of polyethylene or

concerning imports of
polypropylene originating, inter alia, in India

The above review was initiated by Commission Regulation (EC) No 621/2000 which was
published in the Official Journal of the European Communities L 75 of 24 March 2000. All
interested parties were given the opportunity to submit their comments in due course.

The exporting producer's sales to the Community consisted of a single shipment and did not
permit a meaningful assessment of the situation of dumping as regards this exporting
producer. Moreover, the company did not supply a satisfactory questionnaire reply. It was
therefore concluded that the weighted average duty of the Indian companies investigated
during the original anti-dumping investigation,
i.e. 10.5%, would constitute the most
appropriate anti-dumping duty for the company concerned.

On this basis it is proposed to amend the Council Regulation in force accordingly.

Member States were consulted and the majority supported the imposition of an individual
anti-dumping duty.

It is therefore proposed that the Commission approve the attached proposal to the Council to
amend Council Regulation (EC) No 1950/97 imposing a definitive anti-dumping duty on
imports of sacks and bags made of polyethylene or polypropylene originating, inter alia, in
India.

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Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1950/97 imposing a definitive anti-dumping duty on
imports of sacks and bags made of polyethylene or polypropylene originating, inter alia,
in India

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 Community1, and in
particular Article 11(4) thereof,

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

Whereas:

(1)

(2)

A. Previous procedure

By Regulation (EC) No 1950/972, the Council imposed a definitive anti-dumping duty
of 36,0% on imports of sacks and bags made of polyethylene or polypropylene
(hereinafter ‘product concerned’) originating, inter alia, in India, with the exception of
imports from several Indian companies specifically mentioned, which are either
subject to a lesser rate of duty or to no duty at all. This Regulation was subsequently
amended by Council Regulation (EC) No 96/19993. The product
is currently
classifiable under CN codes 6305 32 81, 6305 33 91, ex 3923 21 00, ex 3923 29 10
and ex 3923 29 90.

B. Current procedure

The Commission subsequently received an application to initiate a ‘new exporter’
review of Regulation (EC) No 1950/97, pursuant
to Article 11(4) of Council
Regulation (EC) No 384/96 (the ‘Basic Regulation’), from the Indian producer
Subham Polymers Ltd. (hereinafter referred to as ‘the company concerned’). This
company claimed that it was not related to any of the exporting producers in India
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 April 1994 to 31 March 1995), but had exported the
product concerned to the Community since then.

1

2

3

OJ L 56, 06.03.1996, p.1. Regulation as last amended by Regulation (EC) No 2238/2000 (OJ L 257,
11.10.2000, p. 2).
OJ L 276, 09.10.1997, p.1.
OJ L 11, 16.01.1999, p.1.

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(3)

(4)

(5)

(6)

(7)

(8)

(9)

The product covered by the current review is the same product as the one under
consideration in Regulation (EC) No 1950/97.

The Commission examined the evidence submitted by the Indian exporting producer
to justify the initiation of a review in
concerned and considered it sufficient
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, the Commission initiated, by Regulation
(EC) No 621/20004, a review of Regulation (EC) No 1950/97 with regard to the
company concerned and commenced its investigation.

By the Regulation initiating the review,
the Commission also repealed the
anti-dumping duty imposed by Regulation (EC) No 1950/97 with regard to imports of
the product concerned produced and exported to the Community by the company
concerned and directed customs authorities, pursuant to Article 14(5) of the Basic
Regulation, to take appropriate steps to register such imports.

The Commission's services officially advised the company concerned 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's services sent a questionnaire to the company concerned and
received a reply within the deadline.

The investigation of dumping covered the period from 1 January 1998 to 31 December
1999 (the ‘investigation period’).

The same methodology as that used in the original investigation was applied in the
current investigation.

C. Scope of the review

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

review was limited to dumping.

D. Results of the investigation

1. New exporter qualification

(11)

The investigation confirmed that the company concerned had not exported the product
concerned during the original period of investigation and that it had begun exporting
to the Community after this period.

Furthermore, according to documentary evidence submitted, the company was able to
satisfactorily demonstrate that it did not have any links, direct or indirect, with any of
the Indian exporting producers subject to the anti-dumping measures in force with
regard to the product concerned.

4

OJ L 75, 24.03.2000, p. 45.

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Accordingly, it is confirmed that the company concerned should be considered a new
exporter in accordance with Article 11(4) of the Basic Regulation, and thus an
individual dumping margin should be determined for it.

2. Dumping

(12)

It should be noted that the exporting producer's sales to the Community consisted of a
single shipment. It was found that the quantity involved, i.e. one single container load
of 15 tonnes over a period of two years, although sufficient to initiate a 'new exporter'
review, did not permit a meaningful assessment of the situation of dumping as regards
this exporting producer. Indeed, one shipment cannot normally be considered to
represent ordinary export trading activities of a producer of sacks and bags. In fact it
was established that the average quantity exported by the Indian companies involved
in the original case was about 575 tonnes over a period of one year.

(13) Moreover, the company concerned was not able to supply a satisfactory questionnaire
reply with regard to both domestic sales prices and the adjustments claimed to the
normal value and export price.

(14) Nonetheless, given that the information provided demonstrated that the company
concerned was indeed a 'new exporter' within the meaning of the Basic Regulation, it
was concluded that the weighted average duty of the Indian companies investigated
during the original anti-dumping investigation, i.e. 10.5%, would constitute the most
appropriate anti-dumping duty for the company concerned. The same approach was
already taken in Regulation (EC) No 1950/97 with respect to three other Indian
companies which did not export the product concerned to the Community during the
original investigation period, but which started exporting after this period.

E. Amendment of the measures being reviewed

(15) Based on the findings made during the investigation, it is considered that imports into
the Community of sacks and bags produced and exported by Subham Polymers Ltd.
should be subject to an anti-dumping duty corresponding to the weighted average duty
rate of
investigated during the original anti-dumping
investigation. It is therefore proposed that Council Regulation (EC) No 1950/97 be
amended accordingly.

the Indian companies

F. Retroactive levying of the anti-dumping duty

(16) As the review has resulted in a determination of dumping in respect of Subham
Polymers Ltd., the anti-dumping duty applicable to this company shall also be levied
retroactively from the date of initiation of this review on imports which have been
made subject to registration pursuant to Article 3 of Regulation (EC) No 621/2000.

G. Disclosure and duration of the measures

(17)

The company concerned was informed of the facts and considerations on the basis of
which it was intended to impose a definitive anti-dumping duty on its imports into the
Community. The company objected to the proposed course of action, but did not put
forward any new arguments.

(18)

This review does not affect the date on which Regulation (EC) No 1950/97 will expire
pursuant to Article 11(2) of the Basic Regulation.

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HAS ADOPTED THIS REGULATION:

Article 1

1.

2.

3.

Article 1(2)(a) of Regulation (EC) No 1950/97 is hereby amended by adding the
following to the section headed 'India':

Rate of duty (%)

Taric additional code

'Subham Polymers Ltd.

10.5%

8424'

The duty hereby imposed shall also be levied retroactively on imports of the product
concerned which have been registered pursuant to Article 3 of Regulation (EC) No
621/2000.

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

Article 2

This Regulation shall enter into force on the day 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

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