Notice of initiation of an anti-subsidy proceeding concerning imports of cotton-type bedlinen originating in India
Date: 2002-12-18
Institutions: European Commission
Subjects: India, anti-subsidy proceeding, cotton, import, originating product, textile product

C 316/10

EN

Official Journal of the European Communities

18.12.2002

Notice of initiation of an anti-subsidy proceeding concerning imports of cotton-type bedlinen
originating in India

(2002/C 316/04)

The Commission has received a complaint pursuant to Article
10 of Council Regulation (EC) No 2026/97 (1), as last amended
by Regulation (EC) No 1973/2002 (2) (‘the Basic Regulation’),
alleging that imports of cotton-type bedlinen, originating in
India (‘country concerned’), are being subsidised and are
thereby causing material injury to the Community industry.

1. Complaint

The complaint was lodged on 4 November 2002 by the
Committee of the Cotton and Allied Textile Industries of the
European Community (Eurocoton) (‘the complainant’) on behalf
of producers representing a major proportion,
in this case
the total Community production of
more than 25 %, of
cotton-type bedlinen.

2. Product

The product allegedly being subsidised is bedlinen of cotton
fibres, pure or mixed with man-made fibres or flax (flax not
being the dominant fibre), bleached, dyed or printed orig-
inating in India (‘the product concerned’), currently classifiable
within CN codes
ex
ex 6302 21 00,
6302 31 10, ex 6302 31 90 and ex 6302 32 90. These CN
codes are only given for information.

ex 6302 22 90,

3. Allegation of subsidisation

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 alleged subsidies consist of benefits
for
located in export processing zones/export
oriented units; the advance licences — advance release orders
scheme; the duty entitlement passbook scheme; an income tax
exemption; and the export promotion capital goods scheme.

industries

The total subsidy is estimated to be significant.

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 cotton-type bedlinen. They are alleged to be
contingent upon export performance and therefore specific
and countervailable or to be otherwise specific and counter-
vailable.

to the recipients,

i.e.

4. Allegation of injury

The complainant has provided evidence that imports of the
product concerned from India are made in substantial amounts.

It is alleged that the volumes and the prices of the imported
product concerned have, among other consequences, had a

(1) OJ L 288, 21.10.1997, p. 1.
(2) OJ L 305, 7.11.2002, p. 4.

negative impact on the level of prices charged by the
Community industry, resulting in substantial adverse effects
on the overall performance and the financial situation of the
Community industry.

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 point 2 originating in India 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 for exporters/producers

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

— name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
all countries during the period 1 October 2001 to
30 September 2002,

— 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 2001
to 30 September 2002,

18.12.2002

EN

Official Journal of the European Communities

C 316/11

— a

of

copy

registration-
cum-membership certificate’ issued by The Cotton
Textiles Export Promotion Council,

‘Form of

the

— the turnover in local currency and the volume in
tonnes of
the product concerned sold on the
domestic market during the period 1 October
2001 to 30 September 2002,

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

— the precise activities of the company with regard to

the production of the product concerned,

— the number of

employees

involved

in the

production of the product concerned,

— the names and the precise activities of all related
involved in the production and/or
the product

companies (3)
selling (export and/or domestic) of
concerned,

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:

— name, address, e-mail address, telephone, and fax,

and/or telex numbers and contact person,

— the total turnover in euro of the company during
the period 1 October 2001 to 30 September 2002,

— the total number of employees,

— the precise activities of the company with regard to

the product concerned,

— the volume in tonnes and value in euro of imports
into and resales made in the Community market
the period 1 October 2001 to 30
during
September
product
2002
concerned originating in India,

imported

the

of

— any other relevant information that would assist the

Commission in the selection of the sample,

— the names and the precise activities of all related
involved in the production and/or

companies (3)
selling of the product concerned,

— 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

— an indication on whether

the

company

is

recognised as an export oriented unit,

— an indication on whether the company is located in

an export processing zone.

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 country, 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

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

— any other relevant information that would assist the

Commission in the selection of the sample,

— an indication of whether

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

investigation of

the

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

the sample of

importers,

(iii) Sampling for Community producers

In view of the large number of Community producers
the Commission intends to
supporting the request,
investigate injury to the Community industry by
applying sampling.

In order to enable the Commission to select a sample,
all Community producers are hereby requested to
provide the following information on their company
or companies within the time limit set in point 6(b)(i)
of this notice:

C 316/12

EN

Official Journal of the European Communities

18.12.2002

— name, address, e-mail address, telephone, and fax,

(b) Questionnaires

and/or telex numbers and contact person,

— the total turnover in euro of the company during
the period 1 October 2001 to 30 September 2002,

— the precise activities of the company with regard to

the production of the product concerned,

— the value in euro of sales of the product concerned
made in the Community market during the period
1 October 2001 to 30 September 2002,

— the volume in tonnes of sales of

the product
concerned made in the Community market during
the period 1 October 2001 to 30 September 2002,

— the volume in tonnes of the production of the
product concerned during the period 1 October
2001 to 30 September 2002,

— the names and the precise activities of all related
involved in the production and/or

companies (3)
selling of the product concerned,

— any other relevant information that would assist the

Commission in the selection of the sample,

— 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

(iv) Final selection of the samples

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

samples

The Commission intends to make the final selection of
consulted the parties
the
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)(iii) 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,

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

to any association of

in India

Exporters/producers in India 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 that if sampling is
applied to exporters/producers,
the Commission may
nonetheless decide not to calculate an individual subsidy
rate for them, if the number of exporters/producers is so
large
examination would be unduly
burdensome and would prevent the timely completion of
the investigation.

individual

that

(c) Collection of information and holding of 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
this
It should be noted that any information submitted
notice.
pursuant
if
to Article 31 will only be taken into account
supported by factual evidence at the time of submission.

in point 6(a)(iii) of

link between their

they prove that

activity

18.12.2002

EN

Official Journal of the European Communities

C 316/13

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)(iii) of this notice.

(iii) Hearings

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

(i) The information specified in points 5(1)(a)(i), (ii) and
(iii) 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 on
its final selection within a period of 21 days of the
publication of this notice in the Official Journal of the
European Communities.

the European Communities, given that

(ii) All other information relevant for the selection of the
sample as referred to in 5(1)(a)(iv) must reach the

Commission within a period of 21 days of the publi-
cation of
the
European Communities.

this notice in the Official

Journal of

(iii) 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 submissions and requests made by interested parties must
be made in writing (not in electronic format, unless otherwise
specified), and must indicate the name, address, e-mail address,
telephone and fax, and/or telex numbers of the interested party.

Commission address for correspondence:

European Commission
Directorate-General for Trade
Directorate B
Office: J-79 5/16
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 from the publication of
this notice in the
Official Journal of the European Communities.