Council Regulation (EC) No 1078/2001 of 31 May 2001 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: 2001-05-31
Institutions: Council of the European Union
Subjects: Thailand, anti-dumping duty, dumping, originating product, plastics, textile fibre

2.6.2001

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1078/2001

of 31 May 2001

amending Regulation (EC) No 2160/96 imposing a definitive anti-dumping duty on imports of
polyester textured filament yarn originating, inter alia, in Thailand

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

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

Whereas:

A. PREVIOUS PROCEDURE

By Regulation (EC) No 2160/96 (2), the Council imposed
a definitive anti-dumping duty on imports of polyester
textured filament yarn originating, inter alia, in Thailand.
free at
The rate of
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.

the duty applicable to the net,

consulting the
dumping. Having determined, after
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. Procedure

(3)

(4)

(5)

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 oppor-
tunity 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 prem-
ises of the applicant.

(6)

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

B. INVESTIGATION CONCERNING THE MEASURES IN

FORCE

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 Regula-
tion (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

(7)

(8)

2. Product concerned and like product

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.

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-

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

(EC) No 2238/2000 (OJ L 257, 11.10.2000, p. 2).

(2) OJ L 289, 12.11.1996, p. 14. Regulation as amended by Regulation

(EC) No 1822/98 (OJ L 236, 22.8.1998, p. 3).

(3) OJ C 170, 20.6.2000, p. 4.

(1)

(2)

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2.6.2001

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.

type exported to the Community was established on the
basis of all sales,

including those made at a loss.

(9)

As in the previous investigation, this investigation has
shown that the PTY produced in Thailand by the appli-
cant and sold on the Thai market or exported to the
Community has the same physical and chemical charac-
teristics and the same uses and therefore is to be consid-
ered a like product within the meaning of Article 1(4) of
the basic Regulation.

(b) Export price

(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 accord-
ance with Article 2(8) of the basic Regulation on the
basis of the prices actually paid or payable.

3. Findings

(a) Normal value

(10) As

the determination of normal value
is
far as
it was first established whether the appli-
concerned,
cant'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)

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

(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 inde-
pendent 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 aforemen-
tioned criteria. Consequently, the normal value for each

(c) Comparison

(15)

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

credit

(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 adjust-
ment could be granted.

(d) Dumping margin

(17)

In order to calculate the dumping margin, the Commis-
sion 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.

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(18)

The comparison, as described above, showed the exis-
tence 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 %.

(e) Lasting nature of changed circumstances and likelihood of

recurrence of dumping

(19)

(20)

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 finan-
cial 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
two financial
non-EC countries during both the last
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 coun-
tries were made on average at prices equal to those in
the EC. Moreover, domestic sales of PTY increased signif-
icantly over the last two financial years and the IP.

(21)

(22)

(23)

(24)

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
levels similar to those established in the
imports at
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 reinvesti-
gated 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
the findings were modified
and, where appropriate,
accordingly,

HAS ADOPTED THIS REGULATION:

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

The rate of the definitive anti-dumping duty applicable to the net, free-at-Community-frontier

‘2.
price, before duty, shall be as follows:

Article 1

Indonesia

PT Panasia Indosyntec (formerly: PT Hadtex Indosyntec)

PT Polysindo Eka Perkasa

PT Susilia Indah Synthetic Fibres Industries

Others

Duty

TARIC additional

5,4 %

8,8 %

8,3 %

20,2 %

8884

8886

8887

8888

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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Thailand

Tuntex (Thailand) PLC

Sunflag (Thailand) Ltd

Others

Duty

TARIC additional

6,7 %

4,8 %

20,2 %

8889

8907

8891’

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

Article 2

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

Done at Brussels, 31 May 2001.

For the Council

The President

M-I. KLINGVALL