Proposal for a Council Regulation amending Council Regulation (EC) No 978/2000 imposing a definitive countervailing duty on imports of synthetic fibres of polyester originating in Australia, Indonesia and Taiwan.
Date: 2001-04-18
Institutions: European Commission
Subjects: Australia, Indonesia, Taiwan, countervailing charge, import, plastics

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 18.4.2001
COM(2001) 212 final

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 978/2000 imposing a definitive countervailing
duty on imports of synthetic fibres of polyester originating in Australia, Indonesia and
Taiwan.

(presented by the Commission)

EXPLANATORY MEMORANDUM

It is proposed to repeal with retroactive effect the definitive countervailing duties imposed by
Council Regulation (EC) No 978/2000 on imports of synthetic fibres of polyester originating
in, inter alia, Taiwan.

The attached draft Council Regulation contains more detailed information, showing that a
revision of the methodology for calculating the subsidy margin under a particular subsidy
scheme leads to the subsidy margin for Taiwan becoming de minimis.

The original findings on causation, injury and Community interest for imports originating in
Australia and Indonesia are not affected by the proposed repeal of measures for imports
originating in Taiwan.

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Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 978/2000 imposing a definitive countervailing
duty on imports of synthetic fibres of polyester originating in Australia, Indonesia and
Taiwan.

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 2026/97 of 6 October 1997 on protection
against subsidised imports from countries not members of the European Community1, and in
particular Article 15 thereof,

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

Whereas:

(1)

(2)

Council Regulation (EC) No 978/20002 imposed a definitive countervailing duty on
imports of synthetic fibres of polyester originating in Australia, Indonesia and Taiwan.

it has become apparent

Further to two applications to the Court of First Instance against the Council by
Taiwanese exporting producers seeking annulment of Council Regulation (EC) No
978/2000 in accordance with Article 230 of the Treaty establishing the European
Community,
that part of the methodology applied in
determining the level of subsidisation for Taiwan in Regulation (EC) No 978/2000 is
inconsistent with the Community institutions’ consideration and treatment of virtually
identical data in subsequent proceedings. For one particular subsidy scheme, the 'tax
credit for the purchase of automation and pollution control equipment' granted for
locally purchased equipment, was found to be countervailable according to the
the calculations concerning the amount of
contended Regulation. However,
countervailable subsidy derived from a methodology that was revised in subsequent
proceedings concerning imports of certain polyethylene terephthalate originating in
Taiwan. Reference is made to Commission Regulation3; Council Regulation4, inter
certain
antisubsidy proceeding concerning imports of
alia terminating the
polyethylene terephthalate originating in Taiwan. In these circumstances,
it was
decided to revisit the calculations concerning the amount of subsidy for imports
originating in Taiwan, in particular in order to establish whether the application of the
revised methodology would materially impact on the findings for that country. This

1

2

3

4

OJ L 288, 21.10.1997, p. 1.
OJ L 113, 12.05.2000, p.1.
(OJ L 199, 5.8.2000, p. 6); Commission Regulation (EC) No 1741/2000
(OJ L 301, 30.11.2000, p. 1); Council Regulation (EC) No 2603/2000

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(3)

(4)

particular subsidy scheme was only found to exist in Taiwan and was not therefore
considered as part of the investigation into subsidisation in respect of imports
originating Australia and Indonesia.

The re-examination for Taiwan showed that the revised methodology led to a de
minimis finding of subsidisation, i.e. a countrywide subsidy level of less than 1%.
Therefore, the countervailing measures concerning imports of synthetic fibres of
polyester from Taiwan should be repealed with retroactive effect.

As regards the potential impact of the repeal of measures for Taiwan on the original
findings concerning imports of synthetic fibres of polyester from Australia and
Indonesia, it was examined whether the finding of de minimis subsidisation for Taiwan
adversely affected the conclusions in relation to injury, causation and Community
interest. It was concluded that, in particular given the significant increase in the
volume of imports and market share, and the high levels of undercutting for imports
originating in Australia and Indonesia, the original findings are not undermined insofar
as they concern imports originating in those countries.

HAS ADOPTED THIS REGULATION:

Article 1

Council Regulation (EC) No 978/2000 is amended as follows:

1.

Subparagraph (1) of Article 1 is replaced by the following:

“1. A definitive countervailing duty is hereby imposed on imports of synthetic staple
fibres of polyesters, not carded, combed or otherwise processed for spinning, falling
and Indonesia.”
within CN code 55032000 and originating in Australia

2.

Subparagraph (2) of Article 1 is replaced by the following:

“2. The duty rate applicable to the net free-at-Community-frontier, before duty, for
products produced by the companies indicated shall be as follows for products
originating in:

(1) Australia

Company

Rate of duty
(%)

TARIC
additional code

Leading Synthetics Pty Ltd, Melbourne,
Victoria

All other Australian companies

6,0

6,0

A059

A999

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(2)

Indonesia

Company

Rate of duty
(%)

TARIC
additional code

PT. Indorama Synthetics TbK
Graha Irama, 17th floor
Jl. H. R. Rasuna Said Blok X-1 Kav. 1-2
PO Box 3375
Jakarta 12950

PT. Panasia Indosyntec TbK
Jl. Garuda 153/74
Bandung 40184

PT. Susilia Indah Synthetic Fiber Industries
Jl. Kh. Zainul Arifin Kompleks
Ketapang Indah
Blok B 1 n. 23
Jakarta 11140

PT. GT Petrochem Industries TbK
Exim Melati Building, 9th floor
Jl. M. H. Thamrin Kav. 8-9
Jakarta 10230

PT. Teijin Indonesia Fiber Corporation TbK
5th floor Mid Plaza 1
Jl. Jend. Sudiman Kav. 10-11
Jakarta 10220

0

0

0

0

0

A051

A052

A054

A053

A055

All other companies

10

A999

3.

Subparagraph (1) of Article 2 is replaced by the following:

“The amounts secured by way of the provisional countervailing duty on imports
originating in Australia under Regulation (EC) No 123/2000 shall be collected at the
rate of the duty definitively imposed by this Regulation. Amounts secured in excess
of the rate of definitive countervailing duty shall be released.”

Any countervailing duties collected on imports originating in Taiwan under Council
Regulation (EC) No 978/2000 shall be reimbursed to the importers concerned.

Article 2

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

Article 3

Article 1 shall apply with effect from 13 May 2000.

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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