Proposal for a Council Regulation amending Regulation (EC) No 603/1999 imposing a definitive anti-dumping duty on imports of polypropylene binder or baler twine originating in Poland, the Czech Republic and Hungary, and collecting definitively the provisional duty imposed
Date: 2001-07-27
Institutions: European Commission
Subjects: Czechia, Hungary, Poland, anti-dumping duty, originating product, plastics

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 27.07.2001
COM(2001) 407 final

Proposal for a

&281&,/(cid:3)5(*8/$7,21

DPHQGLQJ(cid:3)5HJXODWLRQ(cid:3)(cid:11)(&(cid:12)(cid:3)1R(cid:3)(cid:25)(cid:19)(cid:22)(cid:18)(cid:20)(cid:28)(cid:28)(cid:28)(cid:3)LPSRVLQJ(cid:3)D(cid:3)GHILQLWLYH(cid:3)DQWL(cid:16)GXPSLQJ(cid:3)GXW\
RQ(cid:3)LPSRUWV(cid:3)RI(cid:3)SRO\SURS\OHQH(cid:3)ELQGHU(cid:3)RU(cid:3)EDOHU(cid:3)WZLQH(cid:3)RULJLQDWLQJ(cid:3)LQ(cid:3)3RODQG(cid:15)(cid:3)WKH
&]HFK(cid:3)5HSXEOLF(cid:3)DQG(cid:3)+XQJDU\(cid:15)(cid:3)DQG(cid:3)FROOHFWLQJ(cid:3)GHILQLWLYHO\(cid:3)WKH(cid:3)SURYLVLRQDO(cid:3)GXW\(cid:3)LPSRVHG

(presented by the Commission)

(;3/$1$725<(cid:3)0(025$1’80

In  March  1999,  by  Regulation  (EC)  No  603/19991,  the  Council  imposed  a  definitive
anti-dumping duty on imports of polypropylene binder or baler twine ("twines") originating,
LQWHU(cid:3)DOLD, in Poland.

On 9 August 2000, the Commission announced by a notice published in the 2IILFLDO(cid:3)-RXUQDO
RI(cid:3)WKH(cid:3)(XURSHDQ(cid:3)&RPPXQLWLHV2 the initiation of a reinvestigation, pursuant to Article 12 of the
Basic Regulation, of the abovementioned anti-dumping measures.

Three Polish exporting producers, which accounted for the totality of the Polish exports of the
product  concerned  to  the  Community  during  the  investigation  period,  and  one  importer,
cooperated in the investigation.

As it was concluded that some absorption had taken place, export prices were reassessed and
dumping margins recalculated, taking into account verified changes in normal value.

It was found that the recalculated dumping margin of one of the three cooperating exporting
producers (Bezalin) was slightly higher (19.4%) than the dumping margin established during
the original investigation (17.2%).

It  is  therefore  proposed  to  amend  Regulation  (EC)  No  603/1999  as  regards  the  definitive
anti-dumping  duty  on  imports  of  polypropylene  binder  or  baler  twine  exported  by  Bezalin.
For all other companies the duties are maintained at the existing levels.

1

2

OJ L 75, 20.3.1999, p. 1, amended by Regulation (EC) No 968/2000, OJ L 112, 11.5.2000, p. 1.
OJ C 227, 9.8.2000, p. 15.

2

                                                
Proposal for a

&281&,/(cid:3)5(*8/$7,21

DPHQGLQJ(cid:3)5HJXODWLRQ(cid:3)(cid:11)(&(cid:12)(cid:3)1R(cid:3)(cid:25)(cid:19)(cid:22)(cid:18)(cid:20)(cid:28)(cid:28)(cid:28)(cid:3)LPSRVLQJ(cid:3)D(cid:3)GHILQLWLYH(cid:3)DQWL(cid:16)GXPSLQJ(cid:3)GXW\
RQ(cid:3)LPSRUWV(cid:3)RI(cid:3)SRO\SURS\OHQH(cid:3)ELQGHU(cid:3)RU(cid:3)EDOHU(cid:3)WZLQH(cid:3)RULJLQDWLQJ(cid:3)LQ(cid:3)3RODQG(cid:15)(cid:3)WKH
&]HFK(cid:3)5HSXEOLF(cid:3)DQG(cid:3)+XQJDU\(cid:15)(cid:3)DQG(cid:3)FROOHFWLQJ(cid:3)GHILQLWLYHO\(cid:3)WKH(cid:3)SURYLVLRQDO(cid:3)GXW\(cid:3)LPSRVHG

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 12(3) thereof,

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

Whereas:

(cid:20)(cid:17)

25,*,1$/(cid:3)0($685(6

$(cid:17)(cid:3)352&(’85(

(1) 

In  March  1999,  the  Council  imposed  a  definitive  anti-dumping  duty  on  imports  of
polypropylene  binder  or  baler  twine  ("twines")  originating,  LQWHU(cid:3) DOLD,  in  Poland  by
Regulation (EC) No 603/19992. The rate  of  the  definitive  duty  applicable  to  the  net,
free-at-Community  frontier  price,  is  20.3%,  with  individual  rates  for  five  companies
ranging between 6.1% and 17.2%.

(cid:21)(cid:17)

5(48(67(cid:3))25(cid:3)$1(cid:3)$17,(cid:16)$%62537,21(cid:3)5(,19(67,*$7,21

(2) 

On  26  June  2000,  a  request  for  a  reinvestigation  of  the  measures  referred  to  in
recital 1 was  lodged  pursuant  to  Article  12  of  Regulation  (EC)  No  384/96
("the Basic Regulation").  The  request  was  submitted  by  the  Liaison  Committee  of
EU Twine, Cordage & Netting  Industries (EUROCORD) ("the applicant"), on behalf
of the Community industry.

1

2 

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.)
OJ  L  75,  20.3.1999,  p.  1.  Regulation  as  amended  by  Regulation  (EC)  No  968/2000,  (OJ  L  112,
11.5.2000, p. 1).

3

                                                
(3) 

The  applicant  submitted  sufficient  information  showing  that  the  anti-dumping  duties
imposed on twines originating in Poland have not led to any movement, or insufficient
movement, in resale prices or subsequent selling prices in the Community. In fact, the
evidence contained in the request showed that export prices and resale prices of twines
in  the  Community  fell  significantly  following  the  imposition  of  the  anti-dumping
measures,  suggesting  an  increase  in  dumping  which  impeded  the  intended  remedial
effects of the measures in force.

(cid:22)(cid:17)

7+((cid:3)$17,(cid:16)$%62537,21(cid:3)5(,19(67,*$7,21

(4) 

(5) 

(6) 

(7) 

(8) 

On  9  August  2000,  the  Commission  announced  by  a  notice  published  in  the
2IILFLDO(cid:3)-RXUQDO(cid:3) RI(cid:3) WKH(cid:3) (XURSHDQ(cid:3) &RPPXQLWLHV3  the  initiation  of  a  reinvestigation,
pursuant  to  Article  12  of  the  Basic  Regulation,  of  the  anti-dumping  measures
applicable to imports of polypropylene binder or baler twine originating in Poland.

The  Commission  officially  advised  the  producers/exporters  known  to  be  concerned,
the  representatives  of  the  exporting  country,  and  importers  of  the  initiation  of  the
reinvestigation.  Interested  parties  were  given  the  opportunity  to  make  their  views
known in writing and to request a hearing within the time limit set out in the notice of
initiation.  The  applicant  requested  and  was  granted  a  hearing.  The  Commission  sent
questionnaires to all parties known to be concerned. Three replies to the questionnaire
were received from Polish exporting producers, i.e. from Pat Defalin s.a. ("Defalin"),
in  Swiebodzice,  Terplast  sp  z.o.o.  (“Terplast”),  in  Sieradz,  and  BZLP  Bezalin
(“Bezalin”), in Bielsko-Biala, and one reply from a German importer, i.e. WBV Oelde
in  Oelde.  On-spot  verifications  were  carried  out  at  the  premises  of  Defalin  and
Terplast in Poland, and WBV Oelde in Germany.

The  investigation  period  of  this  reinvestigation  ("new  IP")  runs  from  1  July  1999  to
30 June  2000.  The  new  IP  was  used  to  determine  the  current  level  of  export  prices,
resale  and  subsequent  selling  prices.  The  new  IP  was  also  used  to  determine  the
changes  in  the  normal  value.  In  establishing  whether  resale  and  subsequent  selling
prices had moved sufficiently, the price levels charged in the new IP were compared to
those  charged  during  the  original  investigation  period  (“original  IP”)  which  had
covered the period from 1 January to 31 December 1997.

Owing to the volume of data gathered and examined, and the fact that normal values
were reexamined, the investigation exceeded the normal period of six months provided
for in Article 12(4) of  the Basic Regulation.

%(cid:17)(cid:3)352’8&7(cid:3)81’(5(cid:3)&216,’(5$7,21

The product concerned by the request and for which the reinvestigation was initiated is
the  same  as  in  the  original  investigation,  i.e.  polypropylene  binder  or  baler  twine
(“twines”) currently classifiable within CN code ex 5607 41 00.

Twines are used in the agricultural sector, notably for binding bundles to be picked up
by  automatic  balers  or  similar  machines.  The  product  is  manufactured  in  different
thicknesses  (runnages)  and  with  different  specifications  in  respect  of,  for  example,
knot  and  tensile  strength,  number  of  twists/turns  per  metre,  colour,  ultra-violet
stabilisation and fibrillation.

3 

OJ C 227, 9.8.2000, p. 15.

4

                                                
&(cid:17)(cid:3)7+((cid:3)5(,19(67,*$7,21

(9) 

The  purpose  of  this  reinvestigation  is,  first,  to  establish  whether  or  not  there  was  a
sufficient  movement in resale  prices  or  subsequent  selling  prices  of  Polish  twines  in
the Community. As a second step, where it is concluded that absorption took place, the
dumping margin is recalculated.

In  accordance  with  Article  12  of  the  Basic  Regulation,  importers  and  exporters
are provided  with  an  opportunity  to  submit  evidence  that  could  justify  a  lack  of
movement  in  prices  in  the  Community  following  the  imposition  of  measures  for
reasons  other  than  absorption  of  the  anti-dumping  duties.  Such  a  reason  could  for
instance  be  a  reduction  in  the  selling,  general  and  administrative  (SG&A)  expenses
(efficiency gains) and profit of the importer (see recital 12 ).

(cid:20)(cid:17)

029(0(17(cid:3)2)(cid:3)5(6$/((cid:3)35,&(6(cid:3),1(cid:3)7+((cid:3)&20081,7<

(cid:20)(cid:17)(cid:20)(cid:17) *HQHUDO

(10)  The  movement  of  resale  prices  in  the  Community  was  assessed  by  comparing  the
resale prices of the new IP with those of the original IP. It should be noted that, though
only one unrelated importer cooperated in the proceeding, its imports represented the
vast majority of the total imports of the product concerned into the Community during
the  new  IP,  so  that  the  resale  prices  of  this  importer  can  be  considered  as
representative of the average resale price of Polish twines in the Community market.
Moreover,  this  importer  was  representative  not  only  as  far  as  the  total  imports
were concerned,  but  also  in  respect  of  the  three  cooperating  Polish  exporting
producers when considered individually, which in turn accounted for the totality of the
Polish exports of twines during the new IP.

(11)  That  comparison  showed  that  resale  prices  of  twines  in  the  Community  had

decreased slightly.

(cid:20)(cid:17)(cid:21)

&ODLPV(cid:3)PDGH(cid:3)E\(cid:3)LQWHUHVWHG(cid:3)SDUWLHV

(cid:20)(cid:17)(cid:21)(cid:17)(cid:20) 5HGXFWLRQ(cid:3)LQ(cid:3)6*(cid:9)$(cid:3)DQG(cid:3)SURILW(cid:3)RI(cid:3)WKH(cid:3)LPSRUWHU

(12) 

It  was  examined  whether  the  lack  of  movement  of  resale  prices  was  due  to  a
decrease in  the  SG&A  expenses  and  profits  of  the  unrelated  importer.  It  was
established  that the  importer  reduced  in  fact  somewhat  its  profit  margin  as  far  as  its
trading of Polish twines is concerned. Consequently, an allowance was granted for the
difference between the profit margin relating to the resale of Polish twine obtained by
the  importer  in  the  original  IP  and  a  reasonable  profit  margin  for  an  independent
importer operating in the same business sector in the new IP.

(cid:20)(cid:17)(cid:21)(cid:17)(cid:21) )RUHLJQ(cid:3)FXUUHQF\(cid:3)FRQYHUVLRQ

(13)  An  allowance  was  also  granted  to  take  account  of  the  depreciation  of  the
Polish national  currency,  Zloty,  against  the  the  Deutsche  Mark  and  the  Euro  which
were  the  main  currencies  of  denomination  of  Polish  twines  sales  to  the  Community
during both the original IP and the new IP.

5

(cid:20)(cid:17)(cid:21)(cid:17)(cid:22) 2WKHU(cid:3)FODLPV(cid:3)RI(cid:3)WKH(cid:3)LPSRUWHU

(14)  The  importer  argued  that  the  movement  in  resale  prices  should  be  assessed  with
reference  to  twines  in  general,  independently  from  their  origin,  as  twines  are  a
commodity  product.  It  pointed  out  that  the  same  lack  of  movement  observed  in  the
resale  prices  of  twines  of  Polish  origin  could  be  equally  seen  in  the  resale  prices  of
twines  originating  in  Member  States  and  other  third  countries.  The  importer  also
claimed that the low level of resale prices of Polish twines and other twines should not
be seen as the direct effect of the low export prices of these twines but, rather, as the
effect of a general situation of the twine market in the Community.

(15)  These  arguments  are  not  relevant  in  the  context  of  the  first  step  of  an  absorption
investigation where what matters is whether the anti-dumping duty is duly reflected in
resale  prices  of  the  product  imported  from  the  country  concerned.  However,  the
impact of any overall price depression was taken into consideration when  examining
whether changes to the normal values previously established were warranted.

(cid:20)(cid:17)(cid:22)(cid:17)

&RQFOXVLRQ

(16) 

It was therefore concluded that some absorption had taken place, as the slight decrease
occurred in the resale price of twines of Polish origin could not be fully justified even
after  taking  into  consideration  the  allowances  described  in  recitals  12  and  13.  The
investigation then turned to a reassessment of the export prices.

(cid:21)(cid:17)

5($66(660(17(cid:3)2)(cid:3)7+((cid:3)(;3257(cid:3)35,&(6

(17)  On  that  basis,  it  was  concluded  that  export  prices  appeared  to  be  unreliable  because
of a  compensatory  arrangement.  Therefore,  export  prices  were  reassessed  pursuant
to Article  2(9)  of  the  Basic  Regulation  on  the  basis  of  the  originally  established
export prices,  taking  into  account  all  applicable  costs,  in  particular  the  amount  of
the anti-dumping  duty  in  force.  The  resulting  export  price  was  also  adjusted  for  any
elements found to be warranted, i.e. any reduction in the SG&A expenses or profit of
the importers, or foreign currency conversion (see recitals 12 and 13).

(18)  The  methodology referred to in recital 17 was followed for each of the three exporting
producers.  In consideration of the  fact  that a fall in export  prices  had  been  observed
during the new IP, these export prices were also examined, in order to verify that they
would not be lower than  the  export  prices  reassessed  as  indicated  in  recital  17.  This
was indeed the case for one exporter. For this company, therefore, the actual – lower –
export prices of the new IP were used in the calculations.

(cid:22)(cid:17)

1250$/(cid:3)9$/8(

(19)  Article 12(5) of Regulation (EC) No 384/96 provides for the possibility to take alleged
changes in normal value into account, where complete information is made available
to the Commission within given time limits. In their replies to the questionnaire, two
of the  three  cooperating  exporting producers claimed that normal value had  changed
due to reduced cost of production.

(20)  These  two  exporters  were  asked  to  further  substantiate  their  claims  and,  after
verification, it was established that their cost of production had decreased and that as a
consequence normal values decreased for both companies.

6

(21)  As the third exporting producer had not claimed that the movement in its export prices
was due to a decrease in its normal value, its normal value was not re-examined.

(cid:23)(cid:17)

5(&$/&8/$7,21(cid:3) 2)(cid:3) 7+((cid:3) ’803,1*(cid:3) 0$5*,1(cid:3) 7$.,1*(cid:3) $&&2817(cid:3) 2)(cid:3) 5($66(66(’
(;3257(cid:3)35,&(6(cid:3)$1’(cid:3)2)(cid:3)$’-867(’(cid:3)1250$/(cid:3)9$/8(6

(22)  As  required  under  Article  12  of  the  Basic  Regulation,  the  dumping  margins  for  the
three exporting producers concerned were recalculated. This was done by  comparing
the reassessed  average export price with the average  normal  value  established  in  the
original  IP,  adjusted  where  warranted.  The  difference  was  then  expressed  as  a
percentage of the average CIF value.

(23)  For two exporting producers,  Defalin and Terplast, the recalculated  dumping  margin
was found not to have increased when compared to the dumping margin established in
the course of the original investigation.

(24)  For the  remaining exporting producer  Bezalin, the recalculated dumping  margin was
slightly  higher  than  the  dumping  margin  established  in  the  original  investigation,
namely 19.4% compared with 17.2% in the original investigation.

(cid:24)(cid:17)

1(:(cid:3)/(9(/(cid:3)2)(cid:3)’87,(6

(25) 

In the case of Bezalin, the original measures were based on the dumping margin. The
recalculated dumping margin is still lower than the injury margin found in the course
of the original investigation. In application of the lesser duty rule, the revised duty rate
should correspond to the revised dumping margin, i.e. 19.4 %.

(26) 

In the case of Defalin and Terplast, given that no increase in the dumping margin was
found, their duty rates should be left unchanged.

(27)  The  duty  rates  for  the  other  individual  companies,  as  well  as  the  countrywide  duty
rate,  should  also  be  left  unchanged,  in  consideration  of  the  fact  that  the  three
cooperating exporting producers represented the totality of the exports of the product
concerned to the Community during the new IP, and that – accordingly – the findings
made  in  the  original  investigation  with  regard  to  other  parties  are  therefore
not affected,

HAS ADOPTED THIS REGULATION:

$UWLFOH(cid:3)(cid:20)

In Article 1 of Regulation (EC) No 603/1999, paragraph 2 is replaced by the following:

7

"2.

The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net  free-at-
Community-frontier  prices  before  duty  of  the  products  manufactured  by  the
companies listed below shall be as follows:

Country

Poland

Company

Rate of duty
(%)

Taric additional
code

BZLP Bezalin
PAT Defalin s.a.
Industrial Chemistry Research
Institute
Terplast sp z.o.o.
WKI Isoliertechnik Spolka z.o.o.
All other companies

Czech
Republic

All companies

Hungary

All companies

HAS ADOPTED THIS REGULATION:

$UWLFOH(cid:3)(cid:21)

19.4
16.3
12.8

 6.1
15.7
20.3

24.8

32.9

8450
8569
8578

8579
A091
8900

8900

8900

"

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the
2IILFLDO(cid:3)-RXUQDO(cid:3)RI(cid:3)WKH(cid:3)(XURSHDQ(cid:3)&RPPXQLWLHV.

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

Done at Brussels,

)RU(cid:3)WKH(cid:3)&RXQFLO
7KH(cid:3)3UHVLGHQW

8