Proposal for a Council Regulation confirming the definitive anti-dumping duty imposed on imports of cotton-type bed linen originating in India by Regulation (EC) No 2398/97, as amended and suspended by Council Regulation (EC) No 1644/2001
Date: 2002-04-09
Institutions: European Commission
Subjects: India, anti-dumping duty, cotton, import, originating product, textile product

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Official Journal of the European Communities

27.8.2002

Proposal for a Council Regulation confirming the definitive anti-dumping duty imposed on
imports of cotton-type bed linen originating in India by Regulation (EC) No 2398/97, as
amended and suspended by Council Regulation (EC) No 1644/2001

(2002/C 203 E/07)

COM(2002) 172 final

(Submitted by the Commission on 9 April 2002)

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)
(‘the basic Regulation’),

lation (EC) No 1644/2001 (5), imposing a definitive anti-
dumping duty on imports of bed linen originating in
Egypt, India and Pakistan and suspending its application
with regard to imports originating in India. The definitive
Regulation was last amended by Council Regulation (EC)
No 160/2002 (6), which suspended the application of the
anti-dumping duty with regard to imports originating in
Egypt and terminated the proceeding with regard to
Pakistan. In accordance with Article 1(2) of Council Regu-
the anti-dumping duty on
lation (EC) No 160/2002,
imports of bed linen originating in Egypt subsequently
expired on 28 February 2002 since no review request
was received by the Commission within the deadlines
foreseen in that Regulation.

Having regard to the proposal made by the Commission after
consultation of the Advisory Committee,

B. RE-ASSESSMENT OF FINDINGS

1. Preliminary remark

Whereas:

A. EXISTING MEASURES

(1) The Council, by Regulation (EC) No 2398/97 of
28 November 1997 (2) imposed a definitive anti-dumping
duty on imports of cotton-type bed linen originating in
Egypt,
India and Pakistan (‘definitive Regulation’). The
definitive Regulation was preceded by Commission Regu-
lation (EC) No 1069/97 (3) imposing a provisional anti-
dumping duty on imports of bed linen originating in
Egypt, India and Pakistan (‘provisional Regulation’).

On 12 March 2001, the Dispute Settlement Body of the
World Trade Organisation (‘WTO’) adopted an Appellate
Body report and a panel report as modified by the
‘European
Appellate
Communities — anti-dumping duties on imports of
cotton-type bed linen from India’ (‘Reports’) (4).

report

Body

case

the

on

a

European

Communities

(EUROCOTON),

(2) Further to a duly documented request submitted by the
Committee of the Cotton and allied textile Industries of
the
the
complainant in the original investigation, the Commission
initiated
in
accordance with Article 11(3) of the basic Regulation.
The notice of initiation was published on 13 February
2002 (7) and the application of the anti-dumping duty
remains suspended pending the outcome of the review
investigation pursuant to Article 2(2) of Regulation (EC)
No 1644/2001.

review concerning

dumping

only,

(3) In view of

that

the fact

to imports originating

the proceeding has been
terminated with regard
in
Pakistan and that measures concerning imports orig-
is
inating in Egypt expired on 28 February 2002,
now considered appropriate to re-assess the findings.
The re-assessment
is limited to the determination of
injury and causal link to the extent that this determination
the joint
was previously based on an examination of
impact of imports from India, Egypt and Pakistan.

it

It is recalled that following the adoption of these Reports,
the definitive Regulation was amended by Council Regu-

(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 332, 4.12.1997 p. 1.
(3) OJ L 156, 13.6.1997, p. 11.
(4) Document WT/DS141/9 of 22 March 2001.

(4) It is recalled that the investigation of dumping covered the
period from 1 July 1995 to 30 June 1996 (‘IP’). The
investigation relating to the parameters relevant in the
injury covered the period from 1 January
context of
1992 up to the end of
the IP (30 June 1996). This
period will be referred to as ‘the period considered’.

(5) OJ L 219, 14.8.2001, p. 1.
(6) OJ L 26, 30.1.2002, p. 1.
(7) OJ C 39, 13.2.2002, p. 17.

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2. Injury

2.1. Volume, market share and prices of the imports from India

(5) The table shows how imports from India,

taken in

isolation, developed during the period considered.

Imports (tonnes)

1992

1993

1994

1995

IP

India (Volume)

11 845 12 424 13 113 17 998 18 428

Index

100

105

111

152

156

Market share

5,9 %

6,4 %

6,8 %

9,5 %

9,9 %

ECU/Kg

Eurostat

Index

Index 1993-IP

Index 1994-IP

5,53

6,05

6,57

5,10

4,94

100

106

100

119

109

100

92

84

78

89

82

75

(6) Imports from India taken in isolation increased from
11 845 tonnes in 1992 to 18 428 tonnes during the IP,
i.e. an increase of 56 % or of 6 583 tonnes during the
period considered.

the dumped imports

(7) If the imports from exporters found not to have dumped
are excluded, the increase in volume of dumped imports
such
significant.
from India remains
exclusion,
from 10 232
tonnes in 1992 to 15 816 tonnes during IP, namely an
increase of 55 % or 5 584 tonnes. Their market share had
increased by 66 % during the period considered and still
represented 8,5 % of the Community market during the
IP.

In the case of

rose

(8) It is worth noting that imports from India grew most in
the period from 1994 to the IP (+ 5 315 tonnes and + 3,1
percentage points market share growth; 5 058 tonnes and
the
+ 2,9 percentage points market
imports
to have
from Indian exporters
dumped are excluded). This development of dumped
imports coincided with a fall in consumption by 4 % or
by 7 849 tonnes on the Community market.

share growth if
found not

(10) During the IP, the level of undercutting of the dumped
imports originating in India ranged from 13,8 % to
40,8 %, expressed as percentages of the adjusted average
prices of
the Community industry. Undercutting also
remains significant if imports from the exporters found
not to have dumped are excluded (see recital
(24) of
Regulation (EC) No 1644/2001). The weighted average
undercutting margin is around 19 %.

2.2. Situation of the Community industry

(11) It is recalled that the situation of the Community industry
was analysed in recitals (81) to (91) of the provisional
Regulation as well as
the
recitals
definitive Regulation. As shown in recitals (25) to (47)
of Regulation (EC) No 1644/2001 all
factors listed in
Article 3(5) of the basic Regulation were analysed.

(40) and (41) of

2.2.1. Growth

(12) The growth of the Community industry was particularly
negative between 1994 and the IP in terms of sales
volume (- 1 173 tonnes). The growth in market share
was very limited in the same period (+ 0,2 percentage
points) and was even negative between 1995 and the
IP. At the same time, the growth of market share of
low-priced imports from India remained always positive
and was significant. Between 1994 and the IP,
Indian
imports increased by 40,5 % or 5 315 tonnes (47 % or
5 058 tonnes
from the Indian exporting
producers found not to have dumped are excluded) and
the growth in market share was as high as 3,1 percentage
points (2,9 percentage points) during the same period.

imports

if

2.2.2. Factors affecting Community prices

(13) When evaluating factors affecting domestic prices the
contraction of

focussed primarily on the

analysis
demand and raw cotton prices.

(14) The investigation clearly showed that

the gap left by
in imports
Community factory closures and the fall
from certain other third countries during the period
considered was
filled to an appreciated extent by
imports from India, of which most were found to be
dumped. Given that the prices of the dumped imports
from India were amongst the lowest of all the operators
selling bed linen on the Community market
is
concluded that the contraction of demand in itself did
not have an overriding impact on prices, notably those
of the Community industry.

it

(9) Furthermore, the above table shows that prices of Indian
bed linen had significantly decreased during the period
considered. For
instance, average prices decreased by
18 % in the period from 1993 to the IP and by 25 %
between 1994 and the IP. The trends in sales prices are
not significantly different if the imports from the Indian
exporters found not to have dumped are excluded.

the total cost of bed linen,

(15) The price of raw cotton, which can represent up to 15 %
increased significantly
of
during the period considered. Normally,
in fair market
conditions, producers should have been able to pass on
this cost
increase to customers. The investigation has
shown that the Community industry was not able to do
so in this case.

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(16) It is also noted that as described in recitals (9) and (10)
above the investigation also established that prices of the
imports concerned decreased considerably and that there
was significant price undercutting by Indian exporting
Indian prices declined by up to 18 % and
producers.
undercutting margins ranging from 13,8 % to 40,8 %
were found to exist.

dumped imports was established on average at 19 %
during the IP.

(21) Based on the above, it is concluded that the Community

has suffered material injury.

(17) Furthermore, between 1994 and the IP, the volume of
imports from India increased the most: 5 315 tonnes
(5 058 tonnes excluding the imports which were not
made at dumped prices) and 3,1 percentage points
growth in market share (2,9 percentage points). These
imports represented 34 % of the Community industry's
sales volume in 1994 and over 50 % during the IP.

3. Causation

3.1. Introduction

(22) Based on the above findings, the causal link analysis set
to (58), of Regulation (EC)
the

out
No 1644/2000 as well as in (100) and (101) of
provisional Regulation should likewise be re-assessed.

in recitals

(54)

2.2.3. Magnitude of the actual margin of dumping

3.2. Effect of the dumped imports from India

(18) As concerns the impact on the Community industry of
the magnitude of the actual margin of dumping, given the
volume and the prices of the imports originating in India,
this impact cannot be considered as negligible. Indeed, as
outlined in recital
Indian imports increased
significantly in absolute and in relative terms. They repre-
sented 33 % of the Community industry's sales volume in
1992 and over 50 % during the IP (respectively 28 % and
43 % if the imports from Indian exporters found not to
have dumped are excluded).

(8) above,

(19) The Association of Indian exporters argued that where the
dumping margins are much lower than the undercutting
the injury suffered by the
or underselling margins,
Community industry must be due to other
factors.
Whilst it is noted that individual dumping margins and
the weighted average dumping margin found for India are
the
than the undercutting margins. However,
lower
dumping margins
found are still distinctly above de
minimis levels. Indeed, at least one third of the under-
cutting would have disappeared if
the imports from
India had not been dumped and this would have made
products from India clearly less attractive.

2.3. Conclusion on injury

(20) It follows from the reassessment carried out above that
imports from India increased by 56 % or by 6 583 tonnes
from 1992 to the IP, and their market share by 67 %
(55 % or by 5 584 tonnes excluding the imports which
were not made at dumped prices).
If only dumped
imports are taken into consideration, they increased by
3,4 percentage points in terms of market share and repre-
sented 8,5 % of the Community market during the IP. The
increase in absolute and relative terms therefore remains
the imports from Indian exporters
significant, even if
to have dumped are excluded. Moreover,
found not
average prices of
Indian bed linen declined by up to
18 % during the period considered and undercutting by

(23) As shown in recitals (5) to (8) above, imports from India
significantly increased by 6 583 tonnes in absolute terms
and by 56 % in percentage terms (if the imports from the
Indian exporters found not to be dumping are excluded,
the volume increase would be 5 584 tonnes, meaning a
percentage terms increase of 55 %). The market share held
by these imports increased during the period considered
from 5,9 % to 9,9 %, namely by 4,0 percentage points
(5,1 % to 8,5 %, namely 3,4 percentage points if
the
imports from the Indian exporting producers found not
to have dumped are excluded). During the IP,
the
weighted average undercutting margin (excluding the
imports from the non-dumping Indian exporters) was
established at around 19 %.

share

(24) During the period considered sales by the Community
industry slightly increased by 348 tonnes and the
increased from
Community industry's market
18,1 % to 19,7 %, namely by 1,6 percentage points.
This has to be seen in the light of the fact that the
Community industry managed to shift production and
to
sales
maintain production and sales levels. Overall, this led to
cost increases not covered by price increases. Indeed, the
investigation showed that
the Community industry's
weighted average sales price remained by and large stable.

to higher value added products

in order

(25) It is also recalled that the market for bed linen is char-
acterised by transparency and a certain product substitu-
tability (recital (97) of the provisional Regulation). Large
Community purchasers of bed linen, whose orders can
ensure a high level of production capacity utilisation
and therefore some economy of scale, are very sensitive
to prices. On this basis, it can be concluded that the low
prices of
the Indian exporting, producers concerned,
which were of the lowest available on the Community
market, coupled with their substantial and increasing
market
exercised continuous downward
pressure on the prices on the Community market.

share, have

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(26) As stated in recital (17) above it should further be noted
that during the period 1994-IP the volume of imports
from India increased the most, namely by 41 % or by
5 315 tonnes (47 % or 5 058 tonnes if
the imports
from the Indian exporting producers found not to have
dumped are excluded). During that period, the market
share of
Indian imports increased by 3,1 percentage
points (2,9 percentage points). It is recalled that the inves-
tigation showed that it was during that period that the
financial situation of the Community industry deteriorated
the most: in particular, profit fell by 1,4 percentage points
and the return on investments by 7 percentage points.

As stated in recital
(99) of the provisional Regulation,
price suppression and consequent decreasing profitability
(and the corresponding development of cash flow and
return on investment) were the main indicators
to
conclude that the Community industry suffered material
injury. In view of the coincidence in time between the
increase in the low-priced dumped imports
significant
the
originating
financial
is
confirmed that
link between these
imports and the material injury found.

and the deterioration of
the Community industry,

in India
situation of

there was a direct

it

3.3. Effects of other factors

3.3.1. Preliminary remarks

(27) It should be recalled that the analysis set out in Regulation
(EC) No 1644/2001 of the effects of factors other than
dumped imports on the state of the Community industry
confirmed the causal link between dumped imports orig-
inating in India, Egypt and Pakistan and the material
injury found (recital (69) of Regulation (EC) 1644/2001).
This analysis included an analysis of imports from other
third countries not subject to measures, which obviously
did not cover imports from Egypt and Pakistan. Given the
the proceeding with regard to imports
termination of
(13) of Regulation (EC)
originating in Pakistan (recital
the measures with
No 160/2002) and the expiry of
regard to Egypt,
the effect of
imports of bed linen from other third countries covers
all
than Indian including those from
imports other
Egypt and Pakistan.

the re-assessment of

(28) In addition, it is important to ensure that the injurious
effects of imports from third countries not concerned,
including those
and Pakistan, are not
attributed to Indian imports taken in isolation. Therefore,
a separate assessment and a distinction between the
injurious effects of those imports were carried out.

from Egypt

(29) From the outset, the nature of the injury suffered by the
Community industry, namely price
suppression and
declining and inadequate profitability which caused
financial losses, should be underlined.

3.3.2. Effect of imports from third countries

(30) Firstly, it should be recalled that the impact of imports of
bed linen from third countries excluding India, Egypt and
Pakistan was analysed in recitals (100) and (101) of the
provisional Regulation. It was found that these imports
originated from a wide range of third countries with very
limited market shares. As shown in the table below,
during the IP, market shares of the most relevant third
countries were: Turkey (4 %), Poland (2,4 %), Thailand
the
(1,5 %), China (1,1 %) and Romania (1,7 %). All
other third countries had a market share below 1 % of
Community consumption.

Imports from
third countries
not originally
concerned
(Eurostat)

Turkey

1992

1993

1994

1995

IP

Market share

4,2 %

3,6 %

3,1 %

3,6 %

4 %

Price ECU/KG

6,7

7,1

7,6

8,1

7,9

Poland

Market share

0,5 %

0,9 %

1,4 %

2,2 %

2,4 %

Price ECU/KG

7,2

7,2

7,5

8,3

8,4

Thailand

Market share

2,1 %

1,6 %

2,2 %

1,8 %

1,5 %

Price ECU/KG

5,0

5,4

4,9

5,1

5,3

China

Market share

0,9 %

1,2 %

1,4 %

1,3 %

1,1 %

Price ECU/KG

10,0

9,5

9,1

9,2

9,7

Romania

Market share

0,3 %

0,2 %

0,7 %

1,0 %

1,7 %

Price ECU/KG

6,7

4,9

5,1

5,6

5,8

12,9 % 9,8 %

7,7 %

4,5 %

4,4 %

Other third
countries with
low Market
Share

Price ECU/KG

6,0

6,6

11,6

14,9

14,7

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27.8.2002

the above third countries. However,
is just 15 % of

(31) The analysis shows that Thailand, whose import price was
7 % higher than that of India, had the lowest level of
the
prices of all
market share of Thailand (1,5 %)
the
market share of India alone. All the other third country
exporters sold their bed linen on the Community market
at prices significantly above the prices of the Indian and
Egyptian exporting producers.
from the
foregoing that most of the above imports were undercut
by imports from India, Egypt and even in some instances
from Pakistan.

follows

It

(32) As stated in recital (101) of the provisional Regulation,
the cheap imports from third countries other than Egypt
and Pakistan, which undercut the Community industry
prices, could also have contributed to the injury suffered
by the Community industry. However, given their limited
the
market share and the level of
consequent impact on the Community market, if any, is
considered to be negligible.

their sales price,

(33) Secondly, imports attributable to Pakistani and Egyptian
exporting producers were analysed in the context of the
assessment of
imports into the
Community originating in countries which were not
imports of bed linen from
under investigation. Overall,
third countries including those from Egypt and Pakistan
developed as follows:

the impact of other

Imports all other
third countries

1992

1993

1994

1995

IP

Volume (tonnes)

63 694 65 094 67 552 65 473 64 078

Index

Price ECU/KG

Index

100

6,0

100

102

6,1

102

106

6,3

105

103

6,5

108

101

6,7

111

Market share

31,9 % 33,5 % 34,9 % 34,6 % 34,5 %

Index

100

105

109

109

108

the period considered. Thus,

(34) As shown in the table above the volume of imports from
all other third countries slightly increased by 1 % or by
as
384 tonnes over
compared to the findings set out in the provisional Regu-
lation, which showed an overall decreasing trend during
the period considered, imports from these other countries
increased by 6 % up to 1994 and subsequently decreased
by 5 %. At the end of the period considered, their volume
was roughly at the same level as at the beginning. The
aforementioned change in findings is also reflected in the
market share. Their market share increased by 8 % or by
2,6 percentage points during the same period.

(35) It should be noted that in the most recent period prior to
the IP, namely from 1994 up to the end of the IP, when
the Community industry
the economic situation of

imports from other

third
developed most negatively,
countries also followed a negative trend: their volume
decreased by 5 % or by 3 474 tonnes and they also lost
market share. The average price however continuously
increased.

(36) It should be noted that the findings made in recitals (100)
and (101) of the provisional Regulation concerning the
trends in volume and average import price of other third
countries are not overall altered by the inclusion of
imports from Egypt and Pakistan.
is recalled that
Pakistan is by far the largest exporting country amongst
those ‘other third countries’ and average import prices
rose
considered.
Moreover, during the IP, prices of sampled Pakistani
producers were in many instances higher than those of
imports from sampled exporting producers from India.

consistently

during

period

the

It

(37) Thirdly and for the sake of completeness, the information
available on imports of bed linen originating in Egypt and
Pakistan is given below and analysed separately in order
to distinguish the injurious effects of these third countries'
imports from the injurious effects of dumped imports
from India:

Egypt

1992

1993

1994

1995

IP

Volume (tonnes)

1 759

2 428

4 319

5 974

6 714

Index

100

142

246

340

382

Market share

0,9 %

1,2 %

2,2 %

3,2 %

3,6 %

Index

ECU/Kg

Eurostat

Index

Index 1993-IP

Index 1994-IP

100

142

253

359

410

4,38

4,46

4,16

4,21

4,28

100

102

100

95

93

96

94

98

96

100

101

103

Pakistan

1992

1993

1994

1995

IP

Volume (tonnes)

20 221 21 874 18 925 21 438 21 514

Index

100

111

94

106

106

Market share

10,1 % 11,2 % 9,8 % 11,3 % 11,6 %

Index

ECU/Kg

Eurostat

Index

Index 1993-IP

Index 1994-IP

100

111

97

112

114

5,64

5,73

6,15

6,11

6,03

100

102

100

109

107

100

108

107

99

107

105

98

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(38) The evolution of

(5)

imports

shown in recitals

alone. However, while

from Egypt and Pakistan
contrasts with imports from India, the development of
which is
to (7) above. Their
combined volume was always higher than the volume
the
imports
of
from India
volume of
imports from India increased significantly
both in absolute and in relative terms during the period
considered,
from Pakistan
remained by and large stable during that period. The
increased both in
from Egypt
volume of
absolute and in relative terms but at
the
the end of
period considered it remained still far below the Indian
levels.

volume of

imports

imports

the

it

statistics

(39) As far as prices are concerned, according to Eurostat
import
emerged that whilst prices of
fairly small
Egyptian imports, which represented a
market share as compared to Pakistan and India, had
slightly decreased by 2 % during the period considered,
Pakistani prices had risen (see
the
provisional Regulation). Moreover, Pakistani prices are
on average higher
than Indian prices. Furthermore,
during the IP and based on data collected from sampled
companies on similar types of bed linen it was found that
in many instances and for large quantities, Pakistani
products were sold at prices higher than those charged
by Indian exporting producers.

(80) of

recital

(43) When analysing the nature and extent of

the injury
caused by low-priced Indian imports on the Community
market,
it is necessary to take account of the dramatic
increase of these imports as compared to Community
(18) above) and the
industry's sales volume (see recital
negative trend in Indian sales prices during the period
considered, as well as during the period from 1994 to
the IP when, as mentioned,
the
situation of
the Community was most marked. The
impact of the increased volume and the trend in sales
price described above on the state of the Community
industry has also to be seen in the light of the trans-
parency and the importance of prices in the bed linen
market.

the deterioration of

(44) The separate analysis of the effects of the import volume
from Egypt and Pakistan and the effect of these imports
on prices in the Community market for bed linen, and the
consequent effect on the Community industry, indicates
that although these imports had a negative impact, the
negative impact of the dumped imports from India taken
in isolation were nonetheless substantial. This finding
takes account of the nature of the material injury found
and the increased volumes and the low level of prices
offered on the Community market by Indian exporting
producers.

(40) Based on Eurostat import statistics it emerged that in
1994 Indian prices were on average 7 % higher than
Pakistani prices, but
the trend significantly reversed
during the IP and Indian prices became on average
18 % lower. This also means that in the period from
1994 to the IP Pakistani prices had decreased by 2 %
whereas Indian prices decreased by as much as 25 %. In
the same period, Egyptian prices had increased by 3 % on
average.

(45) As shown in recitals (5) to (10) above, imports from India
continuously increased during the period considered. The
table below shows the evolution of imports from Indian
exporting producers not found to be dumping and their
import of bed linen from India. The
share in the total
development of Indian imports thus remains significant
even if imports made by Indian exporters found not to
have dumped are excluded.

(41) It is in the most recent part of the period considered,
namely between 1994 and the IP, that Indian exporting
producers gained most of the volume and market shares
(see recitals (17) and (26) above). This period coincided
with the deterioration of the financial situation of the
Community industry.

Non dumped imports
India

1992

1993

1994

1995

IP

Volume (tonnes)

1 612

1 612

2 355

2 540

2 612

Index

100

100

146

158

162

% of Indian imports

16 %

15 %

22 %

16 %

17 %

(42) Low-priced Indian imports represented overall more than
50 % of the Community industry's sales during the IP and
price undercutting by exporting producers located in that
country was significant (see recitals (10) and (18) above).
Indian prices, which were
Between 1993 to the IP,
amongst the lowest of all the operators present on the
price-sensitive Community market, had decreased by
18 %. Indian prices had decreased by 25 % in the period
from 1994 to the IP when the financial situation of the
Community industry developed most negatively.

(46) Finally, as shown above, bed linen from Indian exporting
producers found not to have dumped was imported in
limited quantities onto the Community market. These
imports increased from 1 612 tonnes in 1992 to 2 611
tonnes during the IP. The information available also
these imports had increased
showed that prices
during the period considered. Therefore, even if
these
imports were to be included in the above analysis it
would not reverse the trends as found in recital
(34)
above.

for

C 203 E/44

EN

Official Journal of the European Communities

27.8.2002

Based on the above, the conclusion reached in recital (44)
is not altered if imports from Indian exporting producers
found not to have dumped were included in the overall
analysis of
third
countries.

imports of bed linen from other

industry worsened considerably. Consequently, there is a
causal link between the dumped imports from India and
the material injury suffered by the Community industry.

3.4. Conclusion on causation

(47) Based on the reasoning in recitals (52) to (70) of Regu-
lation (EC) No 1644/2001 and the above re-assessment of
the findings it can clearly be seen that there is a direct
link between the increase in volume and the price effect
of dumped imports from India taken in isolation and the
material injury suffered by the Community industry.

(48) This link is demonstrated in particular by the degree of
the increase in volume and market share of imports orig-
inating in India compared to other third country imports.
This contributed to the suppression of sales prices and the
deterioration of
the Community industry's profitability
from 3,6 % in 1992 to 1,6 % during the IP.

(49) Furthermore,

the

the

analysis of

situation of

the
Community industry between 1994 and the IP and the
imports of bed linen from India indicates a clear
coincidence in time between the marked deterioration of
the financial situation of the Community industry and the
increase, in both relative and absolute terms, in low-priced
and dumped imports originating in India.

(50) Given the above analysis, it is considered that imports of
bed linen originating in India had a significant negative
impact on the situation of the Community industry and
that the effect of other factors, notably imports from third
countries including Pakistan and Egypt was not such as to
alter the finding of a genuine and substantial relationship
of cause of and effect between the dumped imports from
India and the material injury suffered by the Community
industry. Indeed, the injurious effect of Indian imports on
the Community market was greater than any other factor
towards the latter part of the period considered. During
this period imports originating in India gained most of
the volume and market shares, decreased in price by
the Community
25 %, and the financial situation of

C. GENERAL CONCLUSION

(51) As a result, the amended definitive duty introduced and
suspended by Regulation (EC) No 1644/2001 as regards
imports of bed linen originating in India should be
confirmed.

(52) The Indian authorities,

interested parties in the Community,

the Indian exporters and their
in
association, all
particular the Community industry, importers and users,
received disclosure of the reassessed findings and were
given an opportunity to comment and be heard. The
oral and written comments submitted by these parties
were considered but have not altered the conclusions
reached in this Regulation.

(53) Notwithstanding its confirmatory nature, in the interests
of transparency and legal certainty, this Regulation should
enter into force as soon as possible,

HAS ADOPTED THIS REGULATION:

Article 1

The definitive anti-dumping duty imposed on imports of
cotton type bed linen originating in India by Article 1 of
Regulation (EC) No 2398/97, as amended and suspended by
Regulation (EC) No 1644/2001, is hereby confirmed.

Article 2

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Communities.

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