Notice of initiation of an anti-subsidy proceeding concerning imports of polyester textured filament yarn (PTY) originating in India and Indonesia
Date: 2001-11-09
Institutions: European Commission
Subjects: Indonesia, anti-subsidy proceeding, import, originating product, plastics, textile fibre

9.11.2001

EN

Official Journal of the European Communities

C 315/5

Notice of

initiation of an anti-subsidy proceeding concerning imports of polyester textured

filament yarn (PTY) originating in India and Indonesia

(2001/C 315/03)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 (1) (the Basic Regu-
lation), alleging that imports of polyester textured filament yarn
(PTY), originating in India and Indonesia (countries concerned),
are being subsidised and are thereby causing material injury to
the Community industry.

1. Complaint

The complaint was lodged on 25 September 2001 by the Inter-
national Committee of Rayon and Synthetic Fibres (CIRFS) (the
complainant) on behalf of producers representing a major
proportion,
the total
in this case more than 50 %, of
Community production of polyester textured filament yarn
(PTY).

2. Product

The product allegedly being subsidised is polyester textured
filament yarn (PTY) originating in India and Indonesia (the
product concerned), currently classifiable within CN code
5402 33 00. This CN code is only given for information.

3. Allegation of subsidisation

It is alleged that the producers of the product concerned from
Indonesia have benefited from a number of subsidies granted
by the Government of Indonesia. These subsidies are BKPM (or
Investment Coordination Board) schemes, Bapeksta (or Centre
for administration of import duty exemption and drawback)
schemes, and corporate income tax exemption.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the Government of
to
Indonesia and confer a benefit
exporters/producers of polyester textured filament yarn (PTY).
They are alleged to be specific and therefore countervailable.
The total amount of subsidy emanating from these schemes is
estimated to be significant.

to the recipients,

i.e.

It is alleged that the producers of the product concerned from
India have benefited from a number of subsidies granted by the
Government of India. These subsidies are a duty entitlement
passbook scheme, subsidies for industries located in export
processing zones or for export oriented units, an income tax
exemption, the export promotion capital goods scheme and the
advance licence scheme.

It is alleged that the above schemes are subsidies since they
involve a financial contribution from the Government of India
and confer a benefit
to exporters/
producers of polyester textured filament yarn (PTY). They are
alleged to be specific and therefore countervailable. The total
amount of subsidy emanating from these schemes is estimated
to be significant.

to the recipients,

i.e.

(1) OJ L 288, 21.10.1997, p. 1.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from India and Indonesia have increased
overall in absolute terms and in terms of market share.

It is alleged that the volumes and the prices of the imported
product concerned have among other consequences, had a
negative impact on the market share held, the quantities sold
and the level of prices charged by the Community industry,
effects on the overall
resulting
adverse
performance and the financial situation of
the Community
industry.

in substantial

5. Procedure

Having determined, after consulting the Advisory Committee,
that the complaint has been lodged by or on behalf of the
Community industry and that there is sufficient evidence to
justify the initiation of a proceeding, the Commission hereby
initiates an investigation pursuant to Article 10 of the Basic
Regulation.

5.1. Procedure for the determination of subsidisation and

injury

The investigation will determine whether the product described
in paragraph 2 originating in India and Indonesia is being
subsidised and whether this subsidisation has caused injury.

(a) Sampling

In view of the apparent large number of parties involved in
this proceeding,
the Commission may decide to apply
sampling in accordance with Article 27 of the Basic Regu-
lation.

(i) Sampling
Indonesia

for

exporters/producers

in

India

and

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters/producers, or representatives acting on their
behalf, are hereby requested to make themselves
known by contacting the Commission and providing
company or
the
companies within the time limit set in point 6(b)(i)
of this notice:

following information on their

(cid:151) name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

(cid:151) the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 October 2000
to 30 September 2001,

(cid:151) whether the company intends to claim an indi-
vidual subsidy rate (individual subsidy rates can
only be claimed by producers),

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EN

Official Journal of the European Communities

9.11.2001

(cid:151) the turnover in local currency and the sales volume
in tonnes
the product concerned on the
domestic market during the period 1 October
2000 to 30 September 2001,

for

(cid:151) the precise activities of the company with regard to

the production of the product concerned.

(cid:151) the names and the precise activities of all related
involved in the production and/or
the product

companies (1)
selling (export and/or domestic) of
concerned,

(cid:151) any other relevant information that would assist the
sample,
Commission in the
including whether the company is located in an
export processing zone or is an export oriented
unit,

selection of

the

(cid:151) an indication of whether

company or
companies agree to their inclusion in the sample,
replying to a questionnaire and
which implies
accepting an on-the-spot
their
response.

investigation of

the

In order to obtain the information it deems necessary
for the selection of the sample of exporters/producers,
the Commission will,
in addition, contact the auth-
the exporting countries, and any known
orities of
associations of exporters/producers.

(ii) Sampling for importers

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
importers or representatives acting on their behalf, are
hereby requested to make themselves known to the
Commission and to provide the following information
on their company or companies within the time limit
set in point 6(b)(i) of this notice:

(cid:151) any other relevant information that would assist the

Commission in the selection of the sample,

(cid:151) an indication of whether

company or
companies agree to their inclusion in the sample,
which implies replying to a questionnaire and
accepting an on-the-spot
their
response.

investigation of

the

the selection of

In order to obtain the information it deems necessary
for
the
Commission will,
in addition, contact any known
associations of importers.

the sample of

importers,

(iii) Final selection of the samples

All interested parties wishing to submit any relevant
information regarding the selection of
the samples
must do so within the time limit set in point 6(b)(i)
of this notice.

samples

The Commission intends to make the final selection of
the
consulted the parties
concerned that have expressed their willingness to be
included in the sample.

after having

Companies included in the samples must reply to a
questionnaire within the time limit
in point
6(b)(ii) of this notice and must cooperate within the
framework of the investigation.

set

sufficient

cooperation is not

If
the
Commission will base its findings, in accordance with
Articles 27(4) and 28 of the Basic Regulation, on the
facts available.

forthcoming,

(cid:151) name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

(b) Questionnaires

(cid:151) the total turnover in euro of the company during
the period 1 October 2000 to 30 September 2001,

(cid:151) the total number of employees,

(cid:151) the precise activities of the company with regard to

the product concerned,

In order to obtain the information it deems necessary for
its investigation, the Commission will send questionnaires
to the Community industry and to any association of
producers in the Community, to the sampled exporters/
producers in India and Indonesia, to any association of
exporters/producers,
to any
association of importers named in the complaint and, to
the authorities of the exporting countries concerned.

to the sampled importers,

(cid:151) the volume in tonnes and value in euro of imports
into and resales made in the Community market
the period 1 October 2000 to 30
during
September
product
of
concerned originating in India and Indonesia,

imported

2001

the

(cid:151) the names and the precise activities of all related
involved in the production and/or

companies (1)
selling of the product concerned,

(1) For guidance on the meaning of related companies, please refer to
Article 143(1) of Commission Regulation (EEC) No 2454/93
concerning the implementation of the Community Customs Code
(OJ L 253, 11.10.1993, p. 1).

Exporters/producers in India and Indonesia claiming an
individual subsidy rate, with a view to the application of
Articles 27(3) and 15(3) of
the Basic Regulation, must
submit a completed questionnaire within the time limit
set in point 6(a)(ii) of this notice. They therefore have to
request a questionnaire within the time limit set in point
6(a)(i) of this notice. However, such parties should be aware
the
if sampling is applied to exporters/producers,
that
Commission may nonetheless decide not to calculate an
individual
the number of
exporters/producers is so large that individual examination
would be unduly burdensome and would prevent the timely
completion of the investigation.

subsidy rate for

them,

if

9.11.2001

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Official Journal of the European Communities

C 315/7

(c) Collection of information and holding of hearings

(iii) Hearings

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence has to reach the Commission within
the time limit set in point 6(a)(ii) of this notice.

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 6(a)(iii) of
this notice.

5.2. Procedure for assessment of Community interest

For

this

their

industry,

the Community

In accordance with Article 31 of the Basic Regulation and in
the event that the allegations of subsidisation and injury caused
thereby are substantiated, a decision will be reached as to
whether the adoption of anti-subsidy measures would not be
reason the
interest.
against
Community
representative
importers,
associations, representative users and representative consumer
organisations, provided that
there is an
and the product
objective
concerned, may, within the general time limits set in point
6(a)(ii) of this notice, make themselves known and provide
the Commission with information. The parties which have
acted in conformity with the precedent sentence may request
a hearing setting the particular reasons why they should be
heard within the time limit set in point 6(a)(iii) of this notice. It
should be noted that any information submitted pursuant to
Article 31 will only be taken into account if supported by
factual evidence at the time of submission.

link between their

they prove that

activity

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All interested parties should request a questionnaire as
soon as possible, but not later than 15 days after the
publication of this notice in the Official Journal of the
European Communities.

(ii) For parties to make themselves known, to submit ques-

tionnaire replies and any other information

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,
present their views and submit questionnaire replies
or any other information within 40 days of the date
of publication of this notice in the Official Journal of the
European Communities, unless otherwise
specified.
Attention is drawn to the fact that the exercise of
most procedural rights set out in the Basic Regulation
depends on the party’s making itself known within the
aforementioned period.

Companies selected in a sample must submit ques-
tionnaire replies within the time limits specified in
point 6(b)(ii) of this notice.

All interested parties may also apply to be heard by the
Commission within the same 40 day time limit.

(b) Specific time limit in respect of sampling

the European Communities, given that

(i) All information relevant for the selection of the samples
should reach the Commission within 15 days of the
date of publication of
this notice in the Official
the
Journal of
Commission intends to consult parties concerned that
have expressed their willingness to be included therein
on the final selection of the samples within a period of
21 days of the publication of this notice in the Official
Journal of the European Communities.

(ii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date
of the notification of their inclusion in the sample.

7. Written submissions, questionnaire replies and corre-

spondence

All submission and requests made by interested parties must be
made in writing (not in electronic format, unless otherwise
indicate in the name, address, e-mail
specified), and must
address,
the
interested party.

telephone and fax, and/or

telex numbers of

Commission address for correspondence

European Commission
Directorate General for Trade
Directorates B and C
TERV 0/13
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05
Telex COMEU B 21877.

8. Non-cooperation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits,
or significantly impedes the investigation, provisional or final
findings, affirmative or negative, may be made in accordance
with Article 28 of the Basic Regulation, on the basis of the
facts available.

Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made of the facts available.

9. Schedule of the investigation

The investigation will be concluded, according to Article 11(9)
of the Basic Regulation within 13 months of the date of the
publication of this notice in the Official Journal of the European
Communities. According to Article 12(1) of the Basic Regu-
lation, provisional measures may be imposed no later than
nine months
this notice in the
Official Journal of the European Communities.

from the publication of