Proposal for a Council Regulation amending Regulation (EC) No 2160/96 imposing a definitive anti-dumping duty on imports of polyester textured filament yarn originating, inter alia, in Thailand
Date: 2001-05-18
Institutions: European Commission
Subjects: Thailand, anti-dumping duty, plastics, textile fibre

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 18.5.2001
COM(2001) 267 final

Proposal for a

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(presented by the Commission)

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By  Regulation  (EC)  No  2160/96,  the  Council  imposed  a  definitive  anti-dumping  duty  on
imports of polyester textured filament yarn originating in Thailand.

The Commission services carried out an interim review investigation pursuant to Article 11(3)
of  Council  Regulation  (EC)  No  384/96  following  a  request  lodged  by  one  Thai  exporting
producer of polyester textured filament yarn (Sunflag (Thailand) Ltd.). This company alleged
that circumstances had changed and the continued imposition of anti-dumping measures was
no longer necessary to counteract dumping. The investigation was duly initiated in June 2000.

The  investigation  showed  a  lower  dumping  margin,  i.e.  4.8%,  than  that  established  in  the
original investigation and it was considered that the changed circumstances were lasting since
company  exports  were  directed  to  third  countries  for  the  last  two  financial  years  and  the
investigation  period,  at  average  prices  equal  to  those  found  in  the  European  Union.  These
findings  are  viewed  as  evidence  that  dumping  is  unlikely  to  be  at  a  higher  level  than  that
established during the present investigation period.

In  the  light  of  the  foregoing,  the  Commission  proposes  that  the  Council  adopt  the  attached
proposal  for  a  Regulation  amending  Regulation  (EC)  No  2160/96  on  imports  of  polyester
textured filament  yarn  originating,  LQWHU(cid:3) DOLD,  in  Thailand  with  regard  to  Sunflag  (Thailand)
Ltd.

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Proposal for a

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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(3) thereof,

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

Whereas:

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(1)

(2)

By Regulation (EC) No 2160/962, the Council imposed a definitive anti-dumping duty
on imports of polyester textured filament yarn originating, LQWHU(cid:3)DOLD(cid:15) in Thailand. The
rate of the duty applicable to the net, free at Community-frontier price, before duty, is
13.5% for Sunflag (Thailand) Ltd., 6.7% for Tuntex (Thailand) PLC and 20.2% for all
other Thai exporting producers.

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The Thai exporting producer Sunflag (Thailand) Ltd. (’the applicant’) 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 Regulation (EC) No 384/96 (the ’basic
Regulation’). The request alleged that changed circumstances of a lasting nature, such
as  increased  capacity  utilisation  and  efficiency,  had  led  to  a  considerably  reduced
normal  value,  while  at  the  same  time  export  prices  had  remained  constant  so  that
dumping  had  ceased  and  the  continued  imposition  of  the  measures  was  no  longer
necessary  to  counteract  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 2IILFLDO(cid:3)-RXUQDO(cid:3)RI(cid:3)WKH(cid:3)(XURSHDQ(cid:3)&RPPXQLWLHV(cid:22)
and commenced an investigation.

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 289, 12.11.1996, p. 14.
OJ C 170, 20.06.2000, p. 4.

3

                                                
(cid:20)(cid:17)(cid:3)352&(’85(

(3)

(4)

(5)

(6)

The  Commission  officially  advised  the  authorities  of  the  exporting  country  of  the
initiation  of  an  interim  review  and  gave  all  the  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
applicant.

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 applicant.

The investigation of dumping covered the period from 1 June 1999 until 31 May 2000
(the ’IP’).

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(7)

(8)

(9)

The  product  concerned  is  the  same  as  in  the  previous  investigation,  i.e.  polyester
textured  filament  yarn  (’PTY’).  PTY  is  derived  directly  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
codes 5402 33 10 and 5402 33 90.

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 efficiency
of  the  production  process.  However,  no  significant  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.

As in the previous investigation, this investigation has shown that the PTY produced
in  Thailand  by  the  applicant  and  sold  on  the  Thai  market  or  exported  to  the
Community has the same 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.

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(10) As  far  as  the  determination  of  normal  value  is  concerned,  it  was  first  established
whether the applicant’s total domestic sales of the like product were representative in
comparison  with  its  total  export  sales  to  the  Community.  In  accordance  with
Article 2(2) of the basic Regulation this was found to be the case since the domestic
sales  volume of the applicant was at least  5%  of  its  total  export  sales  volume  to  the
Community.

(11)

For  each  of  the  types  sold  by  the  applicant  on  its  domestic  market  and  found  to  be
directly  comparable  with  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 IP, 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

(12) On  this  basis,  it  was  found  that  domestic  sales  were  representative  of  each  type

exported to the Community.

(13) An examination 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 profitable sales to independent customers of the type in question. In
cases where profitable sales of a type represented 80% or more of the total domestic
sales volume of that type and where the weighted average costs of production of that
type were equal to or lower than the weighted average sales price, normal value was
based  on  the  weighted  average  price  of  all  domestic  sales  made  during  the  IP,
irrespective of whether  these  sales were profitable or  not.  All  relevant  types  of  PTY
fulfilled  the  aforementioned  criteria.  Consequently,  the  normal  value  for  each  type
exported to the Community was  established on the basis of all sales,  including  those
made at a loss.

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(14)

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

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(15)

For  the  purposes  of  a  fair  comparison  by  type  on  an  ex-factory  basis  and  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, insurance, handling, loading and ancillary costs, credit and commissions and
partially duty drawback, in accordance with Article 2(10) of the basic Regulation.

(16) During the on-spot verification the applicant made a  claim for duty drawback on the
grounds  that  import  charges  were  borne  by  the  like  product  when  intended  for
consumption in the exporting country but were not paid when the product was sold for
export  to  the Community. With regard  to  PTA  (purified  terepthalic  acid),  one  of  the
main  raw  materials  for  which  a  duty  drawback  was  requested,  the  applicant  did  not
submit  any  evidence  that  the  imported  raw  material  in  question  was  physically
incorporated in the product concerned sold on the domestic market. This is especially
relevant  in  this  case  since  PTA  was  both  purchased  locally  and  imported  and  the
applicant is a multi-product  company.  Therefore that  claim could not be  granted.  As
regards MEG (mono ethylene glycol), another main raw material of PTY, which was
found to be all imported, the adjustment could be granted.

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(17)

In  order  to  calculate  the  dumping  margin,  the  Commission  compared  the  weighted
average  normal  value  with  the  prices  of  every  individual  export  transaction  to  the
Community,  in  accordance  with  the  second  sentence  of  Article  2(11)  of  the  basic
Regulation. This methodology was followed since it was found that there was a pattern
of export  prices which  differed  significantly  among different time periods and that  a
comparison of the normal value and export prices on a weighted average basis did not
reflect the full extent of dumping being practised.

5

(18)

The  comparison,  as  described  above,  showed  the  existence  of  dumping  for  the
applicant. The dumping margin established, expressed as a percentage of the total CIF
value at Community frontier level, duty unpaid, is 4.8%.

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(19)

(20)

(21)

(22)

(23)

(24)

In  accordance  with  consistent  practice  it  was  examined  whether  the  changed
circumstances  could  reasonably  be  considered  to  be  of  a  lasting  nature.  On  the  one
hand, it should be noted that the applicant’s production capacity of PTY had increased
compared to that of the last financial year ending in 1999 and the original IP. On the
other  hand,  the  investigation  showed  that  the  applicant’s  capacity  utilisation  rate  for
PTY had substantially increased between the original and the present IP.

It was also found that the applicant’s exports of PTY to non-EC countries during both
the last  two  financial  years  and  the  IP  had  been  consistently  high.  In  this  context,  it
should be mentioned that exports to non-EC countries increased considerably between
the  original  IP  and  the  present  IP.  In  addition  it  was  found  that,  on  the  basis  of  the
information available, exports to third countries were made on average at prices equal
to those in the EC. Moreover, domestic sales of PTY increased significantly over the
last two financial years and the IP.

The  above  findings  concerning  capacity  utilisation,  export  quantities  and  prices  to
third countries, as well as the surge in domestic sales, are viewed as evidence that the
4.8% margin  of dumping is of  a lasting  nature  and  it  is  unlikely  that  there  will  be  a
recurrence  of  dumped  imports  at  levels  similar  to  those  established  in  the  previous
investigation.

In  view  of  the  finding  of  a  lower  dumping  margin  for  the  applicant  and  as  this
situation is not considered to be of a short-term nature, measures imposed by Council
Regulation (EC) No 2160/96 on exports of the applicant should be reduced to the level
of the dumping margin established for it in the present review, namely, 4.8%.

Since the amendment of the measures concerns only the applicant and not Thailand as
a whole, the applicant remains subject to the proceeding and may be reinvestigated in
any  subsequent  review  carried  out  for  Thailand  pursuant  to  Article  11  of  the  basic
Regulation.

The  interested  parties  were  informed  of  the  facts  and  considerations  on  the  basis  of
which it was intended to recommend that the interim review be terminated and that the
anti-dumping  duty  imposed  by  Regulation  (EC)  No  2160/96  be  amended  and  were
given an opportunity to comment. Their comments were taken into account and, where
appropriate, the findings were modified accordingly.

HAS ADOPTED THIS REGULATION:

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Article 1 paragraph 2 of Regulation (EC) No 2160/96 shall be replaced by the following:

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

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- PT Panasia Indosyntec (formerly: PT Hadtex Indosyntec)

- PT Polysindo Eka Perkasa

- PT Susilia Indah Synthetic Fibres Industries

- Others

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The  duties  shall  not  apply  to  imports  of  the  products  specified  in  paragraph  1  which  are
produced  and  exported  by  the  Indonesian  company  PT  Indo  Rama  Synthetics  (Taric
additional Code 8885).
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- Tuntex (Thailand) PLC

- Sunflag (Thailand) Ltd

- Others

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4.8%

20.2%

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This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the
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This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

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