Commission Regulation (EC) No 1662/2002 of 18 September 2002 imposing provisional anti-dumping duties on imports of certain filament yarns of cellulose acetate originating in Lithuania and the United States of America
Date: 2002-09-18
Institutions: European Commission
Subjects: Lithuania, United States, anti-dumping duty, import, originating product, textile fibre

19.9.2002

EN

Official Journal of the European Communities

L 251/9

COMMISSION REGULATION (EC) No 1662/2002

of 18 September 2002

imposing provisional anti-dumping duties on imports of certain filament yarns of cellulose acetate
originating in Lithuania and the United States of America

(4)

(5)

(6)

(7)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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) (basic
Regulation), as last amended by Regulation (EC) No 2238/
2000 (2), and in particular Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. PROCEDURE

On 20 December 2001, the Commission announced by
a notice (Notice of Initiation) published in the Official
Journal of the European Communities (3), the initiation of an
anti-dumping proceeding with regard to imports into
the Community of certain non-textured artificial fila-
ment yarn of cellulose acetate originating in Lithuania
and the United States of America.

The anti-dumping proceeding was initiated as a result of
a complaint lodged in November 2001 by the Comité
international de la rayonne et des fibres synthetiques
(CIRFS) on behalf of Community producers representing
over 90 % of the total production in the Community.
The complaint contained evidence of dumping of the
said product and of material injury resulting therefrom,
which was considered sufficient to justify the initiation
of a proceeding.

the United
Certain exporting producers claimed that
States of America should not have been included in the
proceeding due to the lack of adequate and accurate
information on injurious dumping and causality at
initiation stage. It should be noted that complainants
have to show that their complaints are non-discrimina-
tory with respect to third countries. Therefore, they have
to provide an analysis of the situation of all countries
with significant
imports with a view of concluding
whether such countries' imports are made at injurious
volumes and prices and whether such countries' export
prices are, prima facie, dumped. The information
contained in the complaint showed similar behaviour for
Lithuanian and United States exports in this respect.
Imports from both countries were allegedly dumped and
undercut/undersold the Community industry's prices/

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 257, 11.10.2000, p. 2.
(3) OJ C 364, 20.12.2001, p. 3.

costs. Furthermore, the difficult situation of the industry
coincided with the increase in imports from both coun-
tries concerned, the market shares of which were signifi-
cant. Given also the analyses of the other possible causes
of injury, these imports were found to have contributed
to the injury suffered and the initiation of an invest-
igation was therefore warranted.

the representatives of

The Commission officially advised the exporting produ-
cers and importers/traders known to be concerned as
the
well as their associations,
exporting countries concerned, users, suppliers and the
complainant Community producers of the initiation of
the proceeding. Interested parties were given the oppor-
tunity to make their views known in writing and to
request a hearing within the time limit set in the Notice
of Initiation.

A number of parties made their views known in writing.
All parties who so requested within the time limit and
showed that there were particular reasons why they
should be heard were granted the opportunity to be
heard orally.

The Commission sent questionnaires
to all parties
known to be concerned and to all the other companies
that made themselves known within the deadlines set
out in the Notice of Initiation. Replies were received
from the two complaining Community producers, three
exporting producers, and their related importers in the
Community, seven users and one trader.

The Commission sought and verified all the information
it deemed necessary for the purpose of a preliminary
determination
and
Community interest. Verification visits were carried out
at the premises of the following companies:

dumping,

resulting

injury

of

(A) Exporting producers

— AB Dirbtinis Pluostas, Kaunas, Lithuania,

— Celanese Acetate LLC, Charlotte (NC), United

States of America,

— Eastman Chemical Company, Kingsport

(TN),

United States of America.

(B) Companies related to the exporting producers

— DPI, Milan, Italy,

— Celanese NV, Lanaken, Belgium,

— Eastman Chemical Company BV, Rotterdam,

Netherlands.

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Official Journal of the European Communities

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(C) Community producers

— Industrias del acetato de Celulosa, SA (INACSA),

Barcelona, Spain,

— Novaceta SpA, Magenta, Italy.

(D) Users

— Marioboselli Yarns SpA, Garbagnate Monastero,

Italy,

— Tessitura Serica A.M. Taborelli srl, Faloppio,

Italy.

normal value was constructed by adding an amount for
selling, general and administrative (SG&A) costs and for
to the exporter's cost of manufacturing. As
profit
domestic sales of
the product concerned were not
representative, and in the absence of any other apparent
basis, for the purpose of a preliminary determination of
dumping the information contained in the complaint
was used for the establishment of SG&A costs and
profit,
in accordance with Article 2(6)(c) of the basic
Regulation.

(8)

The investigation of dumping and injury covered the
period from 1 October 2000 to 30 September 2001
(investigation period or IP). The examination of trends in
the context of the injury analysis covered the period
from 1 January 1997 to the end of the IP (period under
consideration).

(b) Export price

B. PRODUCT CONCERNED AND LIKE PRODUCT

1. Product concerned

(9)

(10)

The product concerned is certain non-textured artificial
filament yarn of cellulose acetate (CAY). CAY is used to
make textile fabrics. It is classifiable within CN codes
5403 33 10, 5403 33 90 and 5403 42 00.

The most
important characteristics of CAY are the
colour, the decitex (weight per length of yarn), and the
package (known in the market in the form of cheese,
beam or back beam). Nylon or polyester might also be
added to the yarn of cellulose acetate. All
types of
models of the product concerned have the same basic
physical and chemical characteristics in spite of
the
differences in packaging, colour and decitex. Therefore,
CAY can be considered as one single product.

2. Like product

(11)

The imported products, the Community produced prod-
ucts and the products sold on the market of both
exporting countries are similar in their essential physical
and technical characteristics and in their uses. They are
therefore considered to be alike within the meaning of
Article 1(4) of the basic Regulation.

C. DUMPING

1. Lithuania

(a) Normal value

(12)

For the sole Lithuanian exporting producer, since total
domestic sales of the product concerned during the IP
to the
represented less
Community, normal value had to be constructed.
In
accordance with Article 2(3) of the basic Regulation,

than 5 % of export

sales

(13)

(14)

For those sales made to independent customers in the
Community, the export price was established on the
the prices actually paid or payable for the
basis of
in accordance
product when sold to the Community,
with Article 2(8) of the basic Regulation.

For sales made via a related importer, the export price
was constructed on the basis of resale prices to the first
independent customers. Adjustments were made for all
costs incurred between importation and resale. These
costs included the related importer's SG&A costs and a
reasonable profit margin. In order to establish a reason-
able profit margin, and in the absence of any cooper-
ating unrelated importer in the current
investigation
whose profit margin could be used for this purpose, the
profit margin net of transport costs established for unre-
lated importers in another investigation covering the
same general category of products (i.e. artificial filament
yarns), was used. As a significant part of the exported
product was further processed by the related importer
through independent subcontractors in the Community
before being resold to the first independent customer,
the relevant processing costs, which represented a signif-
icant percentage of the selling price, were also deducted
from the export price.

(c) Comparison

(15)

For the purposes of a fair comparison between the
normal value and the export price at an ex-works level,
due allowance in the form of adjustments was made for
differences that were claimed and demonstrated to affect
prices and price comparability. These adjustments were
in respect of discounts and
made, where appropriate,
rebates,
loading and
transport,
ancillary costs, commissions and credit costs in accord-
ance with Article 2(10) of the basic Regulation.

insurance, handling,

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(d) Dumping margin

(c) Export price

(16)

In accordance with Article 2(11) and (12) of the basic
Regulation, the dumping margin was established on the
basis of a comparison of the weighted average normal
value with the weighted average export price. The provi-
sional dumping margin expressed as a percentage of the
cif Community frontier price duty unpaid,
the
exporting producer concerned is:

for

Dirbtinis Pluostas: 30,8 %.

As the level of cooperation for Lithuania was high, the
residual provisional dumping margin was set at the same
level as for the cooperating company,

i.e. 30,8 %.

2. United States

(a) Cooperation

(17) One of

the two United States exporting producers
submitted only the sections of the questionnaire relevant
to the injury determination. However,
the company
allowed the Commission services to carry out on-spot
verification visits at its premises, as well as the premises
of its related importer. The company was warned in
accordance with Article 18(6) of the basic Regulation
that as a result of
its only partial cooperation the
dumping findings may be less favourable for it than if it
had fully cooperated.

(b) Normal value

(18)

For the other exporting producer which cooperated
fully, in the absence of profitable domestic sales of the
like product during the IP, normal value had to be
constructed, in accordance with Article 2(3) of the basic
Regulation. Normal value was constructed on the basis
of this exporting producer's own cost of manufacturing
and SG&A costs. Its own SG&A costs could be used
because the domestic sales of the like product made by
the exporting producer were representative as defined in
Article 2(2) of
the basic Regulation. For the profit
margin, in the absence of profitable sales in the same
general category of products and of any other basis, for
the purpose of a preliminary determination of dumping,
the information contained in the complaint was used, in
accordance with Article 2(6)(c) of the basic Regulation.

(19)

In the absence of relevant information from the partially
cooperating exporting producer, the normal value for
the partially cooperating producer was established on
the basis of information obtained from the fully cooper-
ating exporting producer
in the United States of
America, in accordance with Article 18(1) of the basic
Regulation.

(20)

(21)

Since all the sales of the two exporting producers were
made via related importers, export price was constructed
on the basis of
to independent
the resale prices
customers. Adjustments were made for all costs incurred
between importation and resale. These costs included
the related importer's SG&A costs and a reasonable
profit margin. In order to establish a reasonable profit
margin, and in the absence of any cooperating unrelated
importer
investigation whose profit
margin could be used for this purpose, the profit margin
net of transport costs established for unrelated importers
in another
investigation covering the same general
category of products (i.e. artificial filament yarns), was
used. Some of the exports from one exporting producer
were further processed by its related importer in the
Community. These processing costs were also deducted
from the export price.

in the current

(d) Comparison

For the purposes of a fair comparison between the
normal value and the export price at an ex-works level,
due allowance in the form of adjustments was made for
differences that were claimed and demonstrated to affect
prices and price comparability. These adjustments were
made, where appropriate, in respect of physical differ-
ences, discounts
insurance,
handling, loading and ancillary costs, commissions and
credit costs in accordance with Article 2(10) of the basic
Regulation.

and rebates,

transport,

(e) Dumping margin

(22)

In accordance with Article 2(11) and (12) of the basic
Regulation, the dumping margin was established on the
basis of a comparison of the weighted average normal
values with the weighted average export price. The
provisional dumping margins expressed as a percentage
of the cif Community frontier price, duty unpaid, for the
exporting producers concerned are:

Celanese Acetate LLC: 84,8 % and

Eastman Chemical Company: 104,8 %.

(23) As the volume of

imports from the United States
companies which either partially or fully cooperated was
high, the provisional residual dumping margin was set at
the same level as for the United States company with the
highest dumping margin established,

i.e. 104,8 %.

D. DEFINITION OF THE COMMUNITY INDUSTRY

(24) Within the Community,
manufactured by:

the product considered was

— two producers located in Italy and Spain, on behalf
of which the complaint was lodged and which fully
cooperated in the investigation,

— one producer related to a United States exporter and

not supporting the investigation.

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(25) Due to a lack of cooperation and therefore a lack of
the economic operator which is related to a
data,
producer
in the countries concerned (Celanese) has
provisionally been excluded from the definition of the
Community industry.

(33)

(26)

The two cooperating complaining Community produ-
cers fulfil the requirements of Article 5(4) of the basic
Regulation, since they account for 93 % of Community
production of the product concerned. They are therefore
deemed to constitute the Community industry within
the meaning of Article 4(1) of the basic Regulation.

E. INJURY

(a) Apparent Community consumption

(27)

For the calculation of the apparent consumption of the
product concerned on the Community market,
the
Commission added the sales volume of the Community
industry and of the other Community producer to the
total imports into the Community as shown under CN
codes 5403 33 10, 5403 33 90 and 5403 42 00.

(28) On this basis, apparent consumption of the product
concerned in the Community decreased from around
38 000 tonnes in 1997 to 29 000 tonnes in the IP, this
means by 24 %.

(29)

(30)

(31)

The drop was particularly marked between 1998 and
1999 (− 28 %), mainly in the aftermath of the Asian
crisis which happened in autumn of 1997. Afterwards it
partly recovered and consumption was up 6 % between
1999 and the IP. The overall decrease in Community
consumption is mainly attributable to the substitution of
filament yarn of cellulose acetate by lower-priced poly-
ester yarn as well as final products, directly imported
from Asia.

(b) Cumulative assessment of

the

effects of

the

imports

concerned

The Commission examined whether imports of CAY
originating in Lithuania and the United States of
America should be assessed cumulatively in accordance
with Article 3(4) of the basic Regulation.

The margin of dumping established in relation to the
imports from each of the countries concerned was above
the de minimis threshold as defined in Article 9(3) of the
basic Regulation and the volume of imports from each
of these countries was not negligible.

(32) As regards the conditions of competition, the invest-
igation showed that CAY imported from the countries
concerned, were alike in all their essential physical and
technical characteristics. Furthermore, on that basis,
CAY was interchangeable and was marketed in the
Community during the period under consideration
through comparable
similar
commercial conditions.

channels under

sales

it was argued that

It was argued that imports originating in the United
States of America should be decumulated from the
investigation as the complainants clearly distinguished
the effects of imports from the United States of America
and Lithuania. Secondly,
imports
from the United States of America are not undercutting
domestic prices to the same degree as imports from
Lithuania. Thirdly, one exporting producer from the
United States of America has decided not to make any
future investments in the acetate yarn business. Fourthly,
it was argued that the increase in imports from the
United States of America is mainly due to the closing of
a production facility in the Community and substitution
by sales of United States origin. As far as the first
it should be noted that both
argument is concerned,
countries are included in the complaint and both of
them are underselling. Secondly, whilst it is true that
United States prices are only slightly undercutting,
it
should however be borne in mind that prices of the
Community industry have been depressed to a signifi-
cant degree and that underselling occurred. As far as the
remaining two arguments are concerned, they do not
seem to be relevant in the context of the decision on
decumulation.

(34)

In the light of the above, the Commission services provi-
sionally considered that all the criteria set out in Article
3(4) of the basic Regulation were met and that imports
from the countries concerned should therefore be exam-
ined cumulatively.

(c) Imports originating in the countries concerned

V o l u m e

(35)

(36)

The volume of imports of the product concerned origin-
ating in Lithuania and the United States of America into
the Community increased by 63 % over the period
under consideration.

Imports decreased by 13 % between 1997 and 1998.
Imports remained practically stable in 1999 despite the
that consumption in the Community market
fact
decreased by 28 % in this year. Subsequently,
import
volumes more
than doubled in 2000 although
consumption remained by and large stable during the
period 1999-IP.

M a r k e t s h a r e

(37) Over the period under consideration the share of the
Community market held by the dumped imports from
the countries concerned increased by 14 percentage
points.

(38)

The joint market share held by the two countries
concerned increased by 14 percentage points during the
period under consideration. After a slight decrease in
1998,

it increased significantly in 1999 and 2000.

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(d) Prices

P r i c e e v o l u t i o n

(39)

Between 1997 and the IP, the average cif prices of
imports originating in Lithuania and the United States of
America decreased by 14 %. The decrease occurred
steadily over the period under consideration.

P r i c e u n d e r c u t t i n g

(40) A comparison for comparable types of

at

an ex-works

the same level of

the product
concerned was made between the exporting producers'
and the Community industry's average selling prices in
the Community, net of all rebates and taxes to unrelated
customers, at
trade (both related
importers and the Community industry sell to the same
types of users). The prices of the Community industry
were
constructed cif
Community frontier prices of exporting producers of the
countries concerned were adjusted for post importation
costs, applicable duties (in the case of the United States
imports) and a profit margin for importers. However,
some of the exports from two exporting producers were
further processed by their
related importers in the
Community. These processing costs were not deducted
from the export price for reasons of comparability with
the corresponding product
the Community
industry.

level. The

types of

(41)

This comparison showed that during the IP the products
concerned originating in the countries concerned were
sold in the Community at prices which undercut the
Community industry's prices, when expressed as a
percentage of the latter, as follows: Lithuania between
4 % and 8 %, United States of America: between 0 % and
around 2 %. The relatively low undercutting margins are
not an indication of non-injurious export prices. On the
contrary, they are a result of the price depression exerted
on the sales prices of the Community industry.

(e) Situation of the Community industry

P r e l i m i n a r y r e m a r k s

(42)

Pursuant to Article 3(5) of the basic Regulation, the
Commission examined all relevant economic factors and
indices having a bearing on the state of the Community
industry. For
figures are
reasons of confidentiality,
presented in an indexed or approximate form.

C a p a c i t y , p r o d u c t i o n a n d c a p a c i t y u t i l i s a t i o n
r a t e

(43)

The production capacity was reduced significantly by
23 % during the period under consideration, mainly as a
result of the rationalisation of the production facilities
by one of the complaining Community producers. The
first reduction of capacity was introduced in 1999 and
downsizing continued in the IP.

(44)

The production of the Community industry decreased by
28 % during the period under consideration.

(45) After a decrease of 5 % in 1998, production plummeted
in 1999 with a drop of 28 %. This was in line with the
shrinking market. After stabilisation in 2000, produc-
tion recovered slightly during the IP. It should be noted
that production decreased following the
trend of
Community industry's decreasing sales.

(46) Given the practically stable production capacity in the
period 1997 to 1999, capacity utilisation first followed
the same trend as production. After the sharp drop of
production in 1999 of 25 %, the Community industry
reduced capacity and thereby improved capacity utilisa-
tion by 11 % in 2000 and another 13 % during the IP,
albeit against
the background of an overall capacity
reduction.

(47)

(48)

(49)

(50)

(51)

(52)

I n v e n t o r i e s

The level of closing stocks of the Community industry
evolved as follows:

Stocks decreased by 5 % during the period under consid-
eration but constituted 13 % of the sales volume in
1997 whereas in the IP they accounted for 18 % of the
sales volume.

S a l e s v o l u m e a n d m a r k e t s h a r e

sales by

the Community

industry on the
The
Community market decreased by 35 % in terms of
volume and by 40 % in terms of value during the period
under consideration.

In line with the market, sales to unrelated customers
dropped sharply in 1999. While the total consumption
in the Community increased after 1999, the Community
industry nevertheless sold less during the IP than in the
year after the Asian crisis.

The market share held by the Community industry
decreased by 15 % over the period under consideration.

The Community industry lost some market share in the
year 1999 and incurred a further substantial
loss in
2000. In the IP it was able to regain some market share
but was still far below the of 1999.

G r o w t h

(53) While the Community consumption decreased by 24 %
between 1997 and the investigation period, the sales
volume of the Community industry decreased by around
35 %. On the other hand, volume of imports concerned
increased by 63 %. The Community industry thus lost
12 percentage points of its market share, whereas the
imports concerned managed to increase their market
share by 14 percentage points during the same period.
This means that the Community industry reduced its
presence in the market
to an extent exceeding the
decline in growth of the market between 1997 and the
IP.

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(54)

(55)

(56)

(57)

(58)

(59)

S a l e s p r i c e s

The Community producers average net sales price of the
product
the
produced
Community decreased by 6 % between 1997 and the IP.

concerned

sold

and

in

Sales prices remained practically stable until 1999 and
were reduced slightly in 2000 and the IP.

the unit

The evolution in prices should be seen in comparison
with the evolution of the unit cost of production. In
1999,
the Community industry
increased by 16 % mainly because of the decrease in
production. Due to the restructuring and the dismissal of
employees, the unit costs could be reduced gradually.
However, they were still 10 % above the 1997 level.

cost of

E m p l o y m e n t

Between 1997 and the IP, the level of employment of
the Community industry decreased by 29 %.

In an effort to increase productivity in order to reduce
unit costs, staff was reduced significantly from 1999
onwards. The reduction was particularly marked in
2000 with a decline of 14 %.

P r o d u c t i v i t y

Between 1997 and 1999 productivity, measured as
output per person employed per year, fell by 29 % and
improved subsequently due to the restructuring of the
Community industry. In the IP it just slightly exceeded
the 1997 level.

W a g e s

(60)

Between 1997 and the IP,
employee increased by 8 %.

the average wage per

(65)

(66)

(67)

(68)

(69)

The Community industry was profitable in the years
1997 and 1998 with average profitability between 8 %
and 16 %. In the aftermath of the Asian crisis, they
incurred losses in the range of 17 % and 12 % of turn-
over. As a result of the reorganisation, the Community
industry just reached profitable levels again in the IP but
these still remained far below sustainable profit margins.

C a s h f l o w , r e t u r n o n i n v e s t m e n t a n d a b i l i t y
t o r a i s e c a p i t a l

The cash flow generated by the product concerned
declined by 84 % during the period under consideration.

The cash flow fell by 32 % in 1998 and a further 47 %
in 1999.
it continued to decline and then
In 2000,
stabilised in the IP.

The return on capital employed developed similarly to
the profitability and fell by 93 % between 1997 and the
IP. The most significant decline occurred in 1999 when
the Community industry incurred losses. Due to the
reorganisation it improved by 19 % in 2000 and 21 %
in the IP.

shown that

The investigation has
the complaining
Community producers were not experiencing difficulties
in their ability to raise capital. In this respect, it should
be noted that
the Community
the shareholders of
industry decided to support the cellulose acetate busi-
ness and to provide necessary capital.

M a g n i t u d e o f d u m p i n g m a r g i n

(70) 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 from the
countries concerned, this impact is substantial.

(61) After stable wages in 1998 and a slight reduction in
1999, nominal average wages per employee increased to
a level that was 8 % higher in the IP than in 1997. It
should be noted that total wages paid decreased given
the lay off of staff.

(71)

I n v e s t m e n t s

(62)

(63)

investments in the
The Community industry's total
product concerned decreased by 42 % between 1997
and the IP.

In 1999 investments plummeted by 55 %, then recov-
ered in the IP by 14 % but were still far below the
1997/1998 level.

P r o f i t a b i l i t y

(f) Conclusion on injury

(− 12 %),

The examination of the abovementioned factors shows
the
that between 1997 and the IP the situation of
Community industry deteriorated. This resulted in a
deteriorating market
profitability
share
(between − 13 % and − 16 %), cash flow (− 84 %) and
return on capital employed (−93 %). There were also
negative effects as regards production volume (− 28 %)
and sales volume (− 35 %). Staff was reduced by 29 %
during the period under consideration. However, part of
these negative developments were the result of
the
contraction in demand. The development in terms of
capacity utilisation which looks at first sight positive,
should be seen in the light of the decreasing sales and
market share and the ensuing adjustment process under-
taken by the Community industry in terms of capacity
reduction.

(64) Over the period under consideration, profitability of
sales in the EC to unrelated customers in terms of profit/
loss before tax on net sales decreased by 13 to 16
percentage points.

(72)

In the light of the foregoing it is provisionally concluded
that
the Community industry has suffered material
injury within the meaning of Article 3 of the basic
Regulation.

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F. CAUSATION

these dumped imports also coincided with the deteriora-
tion of the Community industry's situation.

(73)

(74)

(a) Introduction

In order to reach its conclusions on the cause of the
injury suffered by the Community industry and in
accordance with Article 3(6) and (7) of the basic Regula-
tion, the Commission services examined the impact of
all known factors and their consequences on the situa-
tion in that industry. Known factors other than the
dumped imports, which could at the same time have
injured the Community industry, were also examined to
ensure that the possible injury caused by these other
factors was not attributed to the dumped imports.

(b) Effects of the dumped imports

Between 1997 and the IP, dumped imports from the
countries concerned increased significantly in volume
(63 %) and in market share (from 12 % in 1997 to 26 %
in the IP). As regards the export prices, they decreased
substantially during the whole period under considera-
tion and undercut Community's industry prices during
the IP on average by 2,9 %. Moreover, undercutting
impact of the dumped
figures did not show the full
imports, since Community prices were depressed (see
recital 54). All this coincided with the deterioration of
the situation of the Community industry in terms of
price reductions, reduced market shares as well as deteri-
orating profitability.

(75)

the
Prices of dumped imports were below those of
Community industry throughout
the period under
consideration and exerted a pressure on them which
forced the Community industry to decrease prices in
spite of increasing costs of production. It is therefore
considered that the dumped imports caused material
injury to the Community industry.

S e l f - i n f l i c t e d i n j u r y

(78)

It was submitted that the Community industry imported
filament yarn of cellulose acetate from the United States
of America at low prices thereby inflicting injury upon
itself. This purchase was due to timing problems in the
production process. Given the small quantity involved
(approximately 1 % of total imports from the countries
concerned during the IP), it is provisionally concluded
that these imports cannot have contributed to the injury
suffered by the Community industry.

A d v e r s e e x c h a n g e r a t e m o v e m e n t s

(79) One exporting producer submitted that adverse currency
rates (GBP/EUR) were a major contributing factor to the
closure of
two production plants of a Community
producer in the United Kingdom. Indeed, in the press
release announcing the plant closure, exchange rate
problems were listed as a reason for the decision.
However, after examination this seems to have been a
minor
the
production facilities in the United Kingdom constituted
only a small part of the Community production whereas
most of the production capacity as well as the consump-
tion is located in Italy and Spain. Therefore,
it was
provisionally concluded that
this had only a minor
impact on the Community industry,

in a wider context. Furthermore,

if any.

factor

C o n t r a c t i o n o f d e m a n d

(c) Effects of other factors

(80)

P e r f o r m a n c e o f o t h e r C o m m u n i t y p r o d u c e r s

(76) One Community producer not supporting the complaint
closed its production facility in the beginning of 2002,
phasing out production already during the investigation
period. Therefore it can be concluded that the products
produced and sold by this only other Community
producer did not contribute to the injury suffered by the
Community industry.

(77)

It was submitted that the increase in imports from the
United States of America was only due to the lower sales
volume by Celanese from its Community production.
This argument was provisionally rejected, as the demora-
lisation of
the production was an internal company
decision whereas the investigation has to focus on the
developments of dumped imports as a whole. Moreover,

Increased substitution of lower-priced polyester filament
yarn for cellulose acetate yarn has occurred in many
fabrics, including linings and apparels. In addition, the
Community industry as well as the users suffered from
competition from downstream products such as fabrics
or garments directly imported from the Far East, rein-
forced after the Asian financial crisis. All parties involved
in the proceeding agreed on this aspect. However, the
sharp drop of consumption in the Community market
occurred between 1998 and 1999 (− 28 %) whilst the
imports from the countries concerned remained mainly
the
stable.
Community industry incurred heavy losses. Subse-
quently,
from the countries
concerned more than doubled, thereby nearly doubling
their market share as well. The consumption in the
Community market increased after the Asian crisis by
6 % (1999-IP), whereas
the
the
Community industry remained stable during the same
period. In terms of sales value, it lost another 6 %. The
Community industry adjusted its production capacity as
well as the number of employees to the contracted

also during that period that

sales volume of

in 2000,

imports

It was

i.e.

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Official Journal of the European Communities

19.9.2002

market, but during the IP due to the reduction in its
market share, which has been taken over by the dumped
imports, it was still only just breaking even. In other
words, during the IP the problem for the Community
industry was not the contraction in demand (because the
industry has adjusted to that already before) but the
dumped imports from the countries concerned.
It is
therefore provisionally concluded that the contraction of
demand contributed only to a minor extent to the injury
suffered by the Community industry.

productivity. Furthermore, the level of the Community
industry's prices would in all likelihood increase moder-
ately as a result. In conclusion, it is expected that the
stabilisation in production and sales volume, on the one
hand, and the further decrease in unit costs, on the other
hand, combined with a moderate price increase, will
allow the Community industry to improve its financial
situation.

I m p o r t s f r o m t h i r d c o u n t r i e s

(81) According to the available information, the total import
volume of the product concerned originating in third
countries decreased by 62 %, and their market share
fluctuated around 1 %. Therefore, they are provisionally
considered not to have had a significant impact on the
Community industry.

(d) Conclusion on causation

(82) Given the above analysis which has properly distin-
guished and separated the effects of all known factors on
the situation of the Community industry from the injur-
ious effects of the dumped imports, it is provisionally
concluded that
these other factors as such did not
reverse the fact that the material injury found may be
attributed to the dumped imports.

(83)

It is therefore provisionally concluded that the dumped
imports originating in Lithuania and the United States of
America have caused material injury to the Community
industry within the meaning of Article 3(6) of the basic
Regulation.

G. COMMUNITY INTEREST

(84)

In order to assess the Community interest, the Commis-
sion carried out an investigation into the likely effects of
the imposition/non-imposition of anti-dumping meas-
ures on the economic operators concerned. Question-
naires were sent to all interested parties known to be
concerned,
importers, other Community
producers and users known to the Commission services.

including

(86) On the other hand, should anti-dumping measures not
be imposed, it is likely that the negative trend of the
Community industry will continue. The Community
industry is particularly marked by a loss of sales volume
and market shares and insufficient profitability. Indeed,
in view of the decreasing sales volume and the material
injury suffered during the IP,
the
financial situation of the Community industry will dete-
riorate further in the absence of any measures. This
would ultimately lead to further cuts in production,
closures of certain production lines and therefore
threaten
the
and
Community.

is obvious that

employment

investments

in

it

(87) Accordingly, it is provisionally concluded that the impo-
sition of anti-dumping measures would allow the
Community industry to recover
from the injurious
dumping.

(b) Interest of unrelated importers/traders in the Community

(88) Questionnaires were sent to nine importers named in
the complaint, out of which five declared not to be
concerned by the investigation as they did not import
from the countries concerned or they did not import the
product concerned at all during the IP, one is related to
a producer in Lithuania and two declared to be users of
the product concerned and accordingly received the
corresponding questionnaire for users.

(89) A trader purchasing only from the Community industry
was in favour of anti-dumping duties in order to stabi-
lise the market.

(90)

it can be provisionally concluded that the
Therefore,
likely effects of the imposition of anti-dumping meas-
ures on unrelated importers/traders would not be signifi-
cant as no objections were raised.

(a) Interest of the Community industry

(85)

Following an imposition of measures, it is expected that
the volume of sales of the product concerned by the
Community industry on the Community market would
stabilise. This would enable the Community industry to
recover lost market shares and, by increasing capacity
utilisation, decrease unit production costs and increase

(c) Interest of the user industry

(91)

The main user of
the product concerned in the
Community is the textile industry producing linings,
women's apparel and furnishings. Most of the users are
located in Italy and Spain.

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L 251/17

(92) Questionnaires were sent to 40 users out of which seven
returned a complete questionnaire reply. They represent
a total turnover of around EUR105 million and sales of
nearly EUR1 million of products
incorporating the
product concerned. This means that 49 % of their turn-
over is generated by products incorporating the product
concerned. Their purchases of filament yarn of cellulose
acetate amounted to 2 726 tons which represented
9,5 % of the total consumption in the Community.

(d) Interest of raw material suppliers

(99)

The Community industry as well as one exporting
producer buy the main raw material, cellulose flakes
from sources in the Community. It was submitted that
purchases by the Lithuanian exporting producer would
come to a halt affecting the company from which it is
sourcing its raw material seriously as this company has
only a small customer base. As this claim was not
substantiated,

it was provisionally rejected.

(93)

In addition, several users sent
letters outlining their
concerns regarding the possible imposition of anti-
dumping duties.

(e) Competition and trade distorting effects

(94) During the period under consideration, profitability of
sales of products incorporating the product concerned in
terms of profit/loss before taxes on net sales increased
from 3,1 % to 5,1 %.

(95)

Cellulose acetate presents on average around 27 % of the
users' cost of production of products incorporating the
product concerned which means that an imposition of a
duty would have an impact on their costs of production.
As the Community industry still has free capacity and
the market might shrink even further, as well as there is
sourcing from countries or
also the possibility of
companies not subject
to anti-dumping duty, price
increases,

if any, are expected to be moderate.

(100)

It was submitted that the Community industry had a
market sharing agreement and thus inflated prices artifi-
cially and that an imposition of a duty would lead to a
monopoly of the Italian producer as the capacity of the
Spanish producer is limited. As these allegations were
not substantiated, they were provisionally rejected.

(f) Consequences for relations with third countries

(101)

It has been argued that the imposition of measures is
against the Community interest as it will have a negative
impact on the Lithuania-EU relations. In this respect, it
should be noted that the Community interest test is
designed to examine the effect of a possible imposition
or non-imposition of anti-dumping measures on the
various economic operators in the Community. There-
fore, the point raised is not included in the Community
interest test.

(96) Nearly all users expect a decline in demand for filament
yarn of cellulose acetate in the Community in the years
to come due to the strong competition from the Far East
both from finished products and alternative yarns.
Consequently, the importance of the product concerned
for users will diminish in the future.

(g) Conclusion on Community interest

(102)

In the light of the above, it is provisionally concluded
that no compelling reasons exist against imposing meas-
ures in the present case and that the application of
measures would be in the interest of the Community.

(97) Users expressed quite diverse opinions on the possible
imposition of duties. Some users stressed that the low-
priced raw material is essential in order to compete with
cheap imports of products from Asia using the product
concerned as raw material. Other users claimed that the
imports destabilise the market and therefore they
supported the imposition of measures. Users processing
imports from the countries concerned were against
measures and users processing EU material were in
favour of measures.

(98) Overall, given the diverse views, the user's profitability
and the possibility to pass on at least partially price
increased in the product concerned, it is provisionally
concluded that the imposition of anti-dumping measures
will not have serious consequences on the user industry.

H. PROVISIONAL MEASURES

(a) Injury elimination level

(103) The level of

the provisional anti-dumping measures
should be sufficient
to eliminate the injurious effect
caused to the Community industry by the dumped
imports, without exceeding the dumping margins found.
When calculating the amount of duty necessary to
it was
remove the effects of the injurious dumping,
should allow the
considered that
Community industry to cover
its costs and obtain
overall a profit before tax that could be reasonably
achieved under normal conditions of competition, i.e. in
the absence of dumped imports.

any measures

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Official Journal of the European Communities

19.9.2002

on

and

situation

(104) On the basis of the information available, it was prelimi-
narily found that a profit margin of 12 % of turnover
could be regarded as an appropriate level which the
Community industry could be expected to obtain in the
absence of injurious dumping, taking into account the
average level of profitability obtained by the Community
Industry in the period 1997 to 1998 i.e. before the
effects of the Asian crisis were felt (see recital 80). It is
in these years there was a normal
considered that
competitive
the
representative
Community market where Community producers
the
competed normally with imports
Community industry,
injurious
dumping, made a normal profit margin which in some
cases exceeded the level of 12 %. The necessary price
increase was then determined on the basis of a compar-
ison of the weighted average import price, as established
for the price undercutting calculations, with the non-
injurious price of products sold by the Community
industry on the Community market. The non-injurious
price has been obtained by adjusting the sales price of
the Community industry by the actual loss/profit made
during the IP and by adding the abovementioned profit
margin. Any difference resulting from this comparison
the total cif
was then expressed as a percentage of
import value.

in the absence of

and where

(105) The injury elimination margins thus established are as

follows:

Lithuania

Dirtiness Pluostas

20,1 %

USA

Celanese

Eastman

16,3 %

de minimis.

(b) Provisional anti-dumping measures

(106)

In the light of the foregoing, it is considered that, in
accordance with Article 7(2) of the basic Regulation, a
provisional anti-dumping duty should be imposed in
respect of
imports originating in Lithuania and the
United States of America at the level of the lower of the
injury margins found, as they are lower
than the
dumping margins.

(107) The levels of the duties proposed are as follows:

(108) The individual company anti-dumping duty rates speci-
fied in this Regulation were established on the basis of
the findings of the present investigation. Therefore, they
reflect the situation found during that investigation with
respect to these companies. These duty rates (as opposed
to the country wide duty applicable to ‘all other compa-
nies’) are thus exclusively applicable to imports of prod-
ucts originating in the country concerned and produced
by the companies and thus by the specific legal entities
mentioned. Imported products produced by any other
company not specifically mentioned in the operative
part of
this Regulation with its name and address,
including entities related to those specifically mentioned,
cannot benefit from these rates and shall be subject to
the duty rate applicable to ‘all other companies’.

(109) Any claim requesting the application of these individual
company anti-dumping duty rates (e.g.
following a
change in the name of the entity or following the setting
up of new production or sales entities) should be
addressed to the Commission (1) forthwith with all rele-
vant information, in particular any modification in the
company's activities linked to production, domestic and
export sales associated with, for example, that name
change or that change in the production and sales enti-
ties. The Commission, if appropriate, will, after consulta-
tion of the Advisory Committee, amend the Regulation
accordingly by updating the list of companies benefiting
from individual rates.

I. UNDERTAKINGS

(110) The sole cooperating exporting producer in Lithuania,
expressed its willingness
to offer an undertaking.
However, it was provisionally determined that due to the
large number of product types concerned in this case,
the complexity of distinguishing between these different
product types, and the large variance of the unit price of
these product types, the monitoring of an undertaking
would be impractical. Therefore, the Commission did
not consider that an undertaking would provide a satis-
factory solution for the purposes of this determination.

Country

Company

Rate of duty
(%)

J. FINAL PROVISION

Lithuania

All companies

United States
of America

Celanese Acetate LLC

20,1

16,3

Eastman Chemical Company

0

All other companies

16,3

(111)

In the interest of a sound administration, a period
should be fixed within which the interested parties may
make their views known in writing and request a
hearing. Furthermore it should be stated that the find-
ings made for the purpose of this Regulation are provi-
sional and may have to be reconsidered for the purpose
of any definitive finding,

(1) European Commission

Directorate-General Trade
Directorate B
Rue de la Loi/Wetstraat 200
B-1049 Brussels.

19.9.2002

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Official Journal of the European Communities

L 251/19

HAS ADOPTED THIS REGULATION:

Article 1

1.
A provisional anti-dumping duty is hereby imposed on imports of certain non-textured artificial
filament yarn of cellulose acetate, falling within CN codes 5403 33 10, 5403 33 90 and 5403 42 00 and
originating in Lithuania and the United States of America.

The rate of the provisional anti-dumping duty applicable to the net-at-Community-frontier price,

2.
before duty, for products produced by the following companies shall be as follows:

Country

Company

Rate of duty (%)

TARIC additional code

Lithuania

All companies

United States of America

Celanese Acetate LLC, 2300 Archdale
Drive, Charlotte, N.C., 28210, United
States of America

Eastman Chemical Company, PO Box
511, Kingsport, Tennessee 37762, United
States of America

All other companies

20,1

16,3

0

16,3

—

A409

A410

A999

3.

Unless otherwise specified, the provisions in force concerning customs duties shall apply.

The release for free circulation in the Community of the product referred to in paragraph 1 shall be

4.
subject to the provisions of a security, equivalent to the amount of the provisional duty.

Article 2

1. Without prejudice to Article 20 of Regulation (EC) No 384/96, interested parties may present their
views in writing and request a hearing from the Commission within one month of the date of entry into
force of this Regulation.

Pursuant to Article 21(4) of Regulation No 384/96, the parties concerned may comment on the

2.
application of this Regulation within one month of the date of its entry into force.

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

Article 1 of this Regulation shall apply for a period of six months.

Article 3

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

Done at Brussels, 18 September 2002.

For the Commission

Pascal LAMY

Member of the Commission