Council Regulation (EC) No 1657/2001 of 10 August 2001 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: 2001-08-10
Institutions: Council of the European Union
Subjects: Central and Eastern Europe, anti-dumping duty, import, manufactured goods, originating product, plastics

17.8.2001

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1657/2001

of 10 August 2001

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

THE COUNCIL OF THE EUROPEAN UNION,

(3)

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 12(3) thereof,

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

Whereas:

The applicant submitted sufficient information showing
that the anti-dumping duties imposed on twines origin-
led to any movement, or
ating in Poland have not
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 signifi-
the anti-dumping
cantly following the imposition of
measures, suggesting an increase in dumping which
impeded the intended remedial effects of the measures in
force.

3. The anti-absorption reinvestigation

A. PROCEDURE

1. Original measures

(1)

(2)

In March 1999, the Council imposed a definitive anti-
dumping duty on imports of polypropylene binder or
baler twine (‘twines’) originating, inter alia, in Poland by
Regulation (EC) No 603/1999 (2). The rate of the defin-
itive duty applicable to the net, free-at-Community fron-
tier price, is 20,3 %, with individual rates for five compa-
nies ranging between 6,1 % and 17,2 %.

2. Request for an anti-absorption reinvestigation

On 26 June 2000, a request for a reinvestigation of the
measure 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) 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 75, 20.3.1999, p. 1. Regulation as amended by Regulation

(EC) No 968/2000 (OJ L 112, 11.5.2000, p. 1).

(4)

(5)

On 9 August 2000, the Commission announced by a
notice published in the Official Journal of the European
Communities (3),
reinvestigation,
initiation of
pursuant to Article 12 of the basic Regulation, of the
anti-dumping measures applicable to imports of poly-
propylene binder or baler twine originating in Poland.

the

a

The Commission officially advised the producers/expor-
ters known to be concerned, the representatives of the
exporting country and importers of the initiation of the
reinvestigation. Interested parties were given the oppor-
tunity 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 Swie-
bodzice, Terplast sp z.o.o. (‘Terplast’),
in Sieradz, and
BZLP Bezalin (‘Bezalin’), in Bielsko-Biala, and one reply
i.e. WBV Oelde in Oelde.
from a German importer,
On-the-spot verifications were carried out at the prem-
ises of Defalin and Terplast in Poland, and WBV Oelde
in Germany.

(3) OJ C 227, 9.8.2000, p. 15.

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(6)

The investigation period of this reinvestigation (‘new IP’)
ran 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
IP’) which had
covered the period from 1 January to 31 December
1997.

investigation period (‘original

(7)

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.

(10)

B. PRODUCT UNDER CONSIDERATION

(8)

The product concerned by the request and for which the
reinvestigation was initiated is the same as in the orig-
inal
i.e. polypropylene binder or baler
twine (‘twines’) currently classifiable within CN code
ex 5607 41 00.

investigation,

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 speci-
fications in respect of, for example, knot and tensile
strength, number of twists/turns per metre, colour, ultra-
violet stabilisation and fibrillation.

C. THE REINVESTIGATION

(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.

administrative (SG&A) expenses (efficiency gains) and
profit of the importer (see recital 12).

1. Movement of resale prices in the Community

1.1. General

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 repres-
imports were
entative not only as far as the total
concerned, but also in respect of the three cooperating
Polish exporting producers when considered individ-
ually, 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.

1.2. Claims made by interested parties

1.2.1. R e d u c t i o n i n S G & A a n d p r o f i t o f

t h e

i m p o r t e r

(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. Conse-
quently, 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.

1.2.2. F o r e i g n c u r r e n c y c o n v e r s i o n

In accordance with Article 12 of the basic Regulation,
importers and exporters are provided with an oppor-
tunity to submit evidence that could justify a lack of
movement in prices in the Community following the
imposition of measures for reasons other than absorp-
tion of the anti-dumping duties. Such a reason could for
instance be a reduction in the selling, general and

(13) An allowance was also granted to take account of the
depreciation of the Polish national currency, the Zloty,
against 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.

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1.2.3. O t h e r c l a i m s o f

t h e i m p o r t e r

this company, therefore, the actual — lower — export
prices of the new IP were used in the calculations.

(14)

(15)

The importer argued that the movement in resale prices
should be assessed with reference to twines in general,
regardless of 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.

is whether

These arguments are not relevant in the context of the
first step of an absorption investigation, where what
matters
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.

1.3. Conclusion

(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 justi-
fied even after taking into consideration the allowances
described in recitals 12 and 13. The investigation then
turned to a reassessment of the export prices.

2. Reassessment of the export prices

(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
the
into account all applicable costs,
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 conver-
sion (see recitals 12 and 13).

in particular

3. Normal value

(19) Article 12(5) of the basic Regulation provides for the
possibility of taking 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 further to substantiate
their claims and, after verification, it was established that
their cost of production had decreased and that, as a
result, normal values decreased for both companies.

(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-exam-
ined.

4. Recalculation of

account of

the dumping margin taking
reassessed export prices and of
adjusted normal values

(22) As required under Article 12 of the basic Regulation, the
dumping margins for the three exporting producers
recalculated. This was done by
concerned were
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)

(24)

For two exporting producers, Defalin and Terplast, the
recalculated dumping margin was found not to have
increased when compared to the dumping margin estab-
lished in the course of the original

investigation.

For the remaining exporting producer Bezalin, the recal-
culated dumping margin was slightly higher than the
dumping margin established in the original investigation,
namely 19,4 %, as compared with 17,2 % in the original
investigation.

(18)

The methodology referred to in recital 17 was followed
for each of the three exporting producers. In considera-
tion 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

(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 %.

5. New level of duties

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(26)

(27)

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

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:

Article 1

Article 1(2) of Regulation (EC) No 603/1999 shall be replaced by the following:

The rate of the definitive anti-dumping duty applicable to the net free-at-Community frontier
‘2.
prices before duty of the products manufactured by the companies listed below shall be as follows:

Country

Company

Rate of duty
(%)

TARIC additional code

Poland

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

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 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, 10 August 2001.

For the Council

The President

L. MICHEL