Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of synthetic fibre ropes originating in India
Date: 2004-09-14
Institutions: European Commission
Subjects: India, anti-dumping duty, anti-dumping legislation, man-made fibre, textile industry, textile product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.9.2004 
COM(2004) 591 final 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of synthetic fibre ropes originating 
in India 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In  June  1998,  the  Council  imposed  definitive  anti-dumping  duties  amounting  to  53.0%  on 
imports of synthetic fibre ropes (SFR) from the sole co-operating Indian exporting producer 
and a residual duty of 82.0% on imports of SFR from other companies in India. 

Following  the  publication  of  a  notice  of  impending  expiry  of  the  anti-dumping  measures  in 
force, the Commission received a request for an expiry review in March 2003 from Eurocord 
on behalf of the Community producers. 

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  definitive  findings  of  an 
examination  of  the  likelihood  of  recurrence  of  dumping,  likelihood  of  recurrence  of  injury, 
causation and Community interest, which confirmed the likelihood of recurrence of injurious 
dumping.  

It is therefore proposed that the Council adopt the attached proposal for a Regulation which 
should be published in the Official Journal as soon as possible.  

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Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of synthetic fibre ropes originating 
in India 

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 Community1 (‘the basic 
Regulation’), and in particular Article 11(2) thereof, 

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

Whereas:  

A. PREVIOUS INVESTIGATION 

(1) 

By  Regulation  (EC)  No  1312/982,  the  Council  imposed  definitive  anti-dumping 
measures on imports of synthetic fibre ropes (‘SFR’) originating in India.  

B. PRESENT INVESTIGATION 

Following  the  publication  of  a  notice  of  impending  expiry3  of  the  anti-dumping 
measures in force, the Commission received a request for an expiry review lodged by 
the Liaison Committee of E.U. Twine, Cordage and Netting industries (EUROCORD) 
on behalf of ten producers, together representing a major proportion (53%) of the total 
Community  production  of  synthetic  fibre  ropes.  The  request  alleged  that  injurious 
dumping  of  imports  originating  in  India  would  be  likely  to  recur  if  the  measures 
expired. 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  a  review,  the  Commission  initiated  an  investigation4 
pursuant to Article 11(2) of the basic Regulation. 

The  investigation  into  the  likelihood  of  a  continuation  or  recurrence  of  dumping 
covered the period from 1 July 2002 to 30 June 2003 (’IP’). The examination of trends 

OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  461/2004  (OJ  L  77 
13.3.2004, p. 12). 
OJ L 183, 26.6.1998 p. 1. 
OJ C 240, 5.10.2002, p. 2. 
OJ C 149, 26.6.2003, p. 12. 

(2) 

(3) 

(4) 

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(5) 

(6) 

(7) 

(8) 

(9) 

relevant  for  the  assessment  of  a  likelihood  of  a  continuation  or  recurrence  of  injury 
covered  the  period  from  1  January  2000  up  to  the  end  of  the  IP  (’the  period 
considered’). 

The  Commission  officially  advised  the  applicant  Community  producers,  the  other 
Community  producers, 
India, 
importers/traders,  users  and  suppliers  of  raw  materials  which  were  known  to  be 
concerned, of the initiation of the review. 

the  exporters  and  exporting  producers 

in 

The Commission requested information from all the above-mentioned parties and from 
those other parties who made themselves known within the time limit set in the notice 
of initiation. The Commission also gave the parties directly concerned the opportunity 
to make their views known in writing and to request a hearing. 

In particular, the Commission sent questionnaires to all parties known to be concerned, 
i.e. to 4 exporting producers located in India, 6 unrelated importers/traders located in 
the EU, 11 suppliers of raw materials in the EU and 23 users in the EU. No answer to 
the questionnaire was received from these interested parties.  

In addition, the Commission sent questionnaires to 5 Community industry companies, 
which  had  been  chosen  as  a  representative  sample  of  the  Community  producers 
supporting the request for this expiry review, and information was also requested from 
11  non-complainant  Community  producers.  All  the  5  sampled  companies  replied  to 
the questionnaire, whereas none of the non-complainant producers replied.  

The Commission sought and verified all the information it deemed necessary for the 
purpose  of  the  determination  of  the  likelihood  of  continuation  or  recurrence  of 
dumping and injury and for the determination of the Community interest. Verification 
visits were carried out at the premises of the following Community producers: 

– 

– 

– 

– 

– 

Bexco N.V. (Belgium).  

Companhia Industrial de Cerdas Artificiais, SA - Cerfil (Portugal).  

Companhia Industrial Têxtil, S.A. – Cordex (Portugal). 

Companhia de Têxteis Sintéticos, S.A. - Cotesi (Portugal).  

Cordoaria Oliveira, SA (Portugal).  

C. PRODUCT CONCERNED AND LIKE PRODUCT 

1. 

Product concerned  

(10)  The  product  concerned  is  the  same  as  that  in  the  investigation  which  led  to  the 
imposition of the measures currently in force on imports of synthetic fibre ropes from 
India  (‘the  original  investigation’)  and  is  defined  as  follows:  Twine,  cordage,  ropes 
and cables, whether or not plaited or braided and whether or not impregnated, coated, 
covered  or  sheathed  with  rubber  or  plastics,  of  polyethylene  or  polypropylene,  other 
than binder and baler twine, measuring more than 50 000 decitex (5g/m), as well as of 
other synthetic fibres of nylon or other polyamides or of polyesters, measuring more 
than 50 000 decitex (5g/m).  It is currently classifiable within  CN codes 5607  49 11, 

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5607  49  19,  5607  50  11  and  5607  50  19.  The  product  concerned  is  used  for  a  wide 
variety  of  naval  and  industrial  applications,  in  particular  for  shipping  (especially  for 
mooring purposes), and the fishing industry.  

2. 

Like product 

(11)  As shown in the previous investigation, and as confirmed in the present investigation, 
it  has  been  established  that  the  product  concerned  and  the  synthetic  fibre  ropes 
produced and sold by the Indian exporting producers on their domestic market as well 
as those produced and sold by the Community producers in the Community are in all 
respects  identical  and  share  therefore  the  same  basic  physical  and  chemical 
characteristics. Therefore they are considered to be like products within the meaning 
of Article 1(4) of the basic Regulation. 

(12)  One  interested  party  has  claimed  that  synthetic  fibre  ropes  produced  and  sold  by 
Indian exporting producers and those manufactured by the Community producers are 
not identical in all respects, as some quality differences exist between the two types of 
products.  

(13)  The fact that the product concerned imported from India has some quality differences 
compared  to  the  product  manufactured  by the Community  industry does not exclude 
the  products  from  being  considered  as  “like”,  in  so  far  as  they  share  the  same  basic 
physical, technical and chemical characteristics or closely resemble each other.  

(14)  Furthermore,  in  the  current  investigation,  and  in  the  investigation  which  led  to  the 
imposition  of  the  measures  in  force,  it  was  found  that  synthetic  fibre  ropes 
manufactured  by  the  Community  industry  and  those  susceptible  of  being  exported 
from India are in competition with each other. The argument is therefore rejected. 

D. LIKELIHOOD OF RECURRENCE OF DUMPING 

(15) 

In accordance with Article 11(2) of the basic Regulation, it was examined whether the 
expiry of measures would be likely to lead to a recurrence of dumping. In the absence 
of cooperation from any of the Indian exporting producers, this examination had to be 
based on information available to the Commission from other sources. 

1. 

Preliminary remarks 

(16)  Of the four Indian exporting producers named in the request for an expiry review, one 
stated  at  the  beginning  of  the  investigation  that  it  had  not  exported  the  product 
concerned  to  the  Community  during  the  IP.  The  Commission  services  advised  the 
company that it should nevertheless supply the remaining information requested in the 
questionnaire, which the company declined to do. Another company also stated that it 
had  no  exports  to  the  Community  during  the  IP,  but  only  after  the  deadline  for 
submission of the questionnaire reply had elapsed. A third company stated that it had 
not  exported  to  the  Community  during  the  IP,  and  furthermore  that  it  had  ceased 
activity and therefore could not reply to the questionnaire. All companies in question 
were  duly  advised  that  failure  to  cooperate  may  result in  the  finding  being  based  on 
facts available in accordance with Article 18 of the basic Regulation. 

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(17)  Given that none of the Indian exporting producers replied to the questionnaire of the 
Commission services, use was made, in accordance with the provisions of Article 18 
of  the  basic  Regulation,  of  the  facts  available,  including  those  submitted  by  the 
Community industry in its request for an expiry review. 

(18) 

Imports  of  the  product  concerned  from  India  dropped  to  insignificant  levels 
subsequent  to  the  imposition  of  anti-dumping  duties  in  1998.  During  the  IP,  these 
imports  were  less  than  20  tonnes  per  year,  i.e.  less  than  0.1%  of  Community 
consumption. 

(19) 

In the absence of significant exports to the Community market, it was examined how 
imports of SFR from India would develop should the measures be allowed to expire. 
This analysis covered both export prices and volume. 

2. 

Dumping of imports during the investigation period 

(20) 

It  is  recalled  that,  in  the  original  investigation,  dumping  margins  of  53.0%  for  the 
cooperating  company  and  82.0%  for  the  remaining  exporting  producers  were 
established. The elimination of such levels of dumping would therefore have required 
a  substantial  increase  in  export  prices,  or  a  diminution  of  the  normal  value,  in  the 
period since the original measures were imposed. 

(21)  The normal values in the original investigation were, for the most part, based on the 
domestic  prices  in  the  Indian  market,  as  reported  by  the  cooperating  company.  The 
information  contained  in  the  request  for  an  expiry  review  indicates  that  those  prices 
have decreased by between 10% and 20% in the five years subsequent to the original 
investigation. It is therefore concluded that, in the absence of co-operation by Indian 
exporters  of  the  product  concerned,  normal  value  has  also  decreased  by  similar 
percentages in the five years subsequent to the original investigation. 

(22)  According  to  Indian  export  statistics,  the  average  prices  for  Indian  exports  to  all 
countries,  of  the  two  product  groupings  concerned,  i.e.  those  classifiable  under  CN 
subheadings  5607  49  and  5607  50,  declined  respectively  by  46%  and  51%  between 
1997/98  and  2002/2003.  Similar  price  declines  over  this  period  can  be  observed  for 
each of the main markets for the Indian exports, such as Norway and the USA, when 
taken separately. Those declines are more pronounced than that of the normal value, as 
mentioned  in  recital  (21),  and  therefore  any  dumping  practices  at  the  time  of  the 
original  investigation  are  unlikely  to  have  been  reversed.  In  addition,  Indian  normal 
value of some types of the product concerned during the IP was higher than prices on 
the EU market during that period. It is likely, therefore, that in the event of resumption 
of  exports  by  Indian  exporters  to  the  EU,  these  exports  would  be  priced  below  the 
normal value, i.e. at dumped prices, at least for some types of the product concerned. 

(23)  More  detailed  calculations  per  tariff  code,  submitted  by  the  Community  industry  for 
Indian  exports  to  the  USA  and  Norway,  during  the  IP,  take  into  consideration  the 
differences  in  prices  and  normal  values  between  different  types  of  synthetic  fibre 
ropes.  These  calculations  indicate  that  Indian  exports  to  third  countries  are  still 
dumped at margins between 53.4% and 222.2%.  

(24) 

In  the  absence  of  exports  and  of  co-operation  by  Indian  exporters  of  the  product 
concerned  in  the  investigation,  the  level  of  dumping  during  the  IP  has  not  been 

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established. However, on the basis of the significant decrease in Indian export prices 
to  other  third  countries  in  the  five  years  subsequent  to  the  original  investigation 
combined  with  a  smaller  decrease  in  domestic  prices  over  the  same  period,  it  is 
considered  that  the  level  of  dumping  of  the  product  concerned  to  the  Community 
during the IP would likely have been at a higher level than that found in the original 
investigation.  

3. 

Development of imports should measures be repealed  

(a)  Export  sales  to  other  countries  (volume  and  prices)  and  prices  on  the  Indian 

market 

(25)  Overall,  the  Indian  exports  to  other  countries  have  increased  during  the  five  years 
since  the  original  investigation.  According  to  Indian  export  statistics,  the  volume  of 
exports of the products classifiable under CN subheadings 5607 49 and 5607 50, the 
majority  of  which  consist  of  the  product  concerned,  increased  by  104%  between 
1997/98 and 2002/2003.  

(26)  The observed export prices from India to third country export markets are 17% to 61% 
lower than the Community industry prices. This suggests that Indian exporters would 
have  a  potentially  large  incentive  to  shift  their  exports  to  the  Community  market, 
should the measures be allowed to lapse.  

(b) Spare capacity and investments 

(27)  As for production capacity, the one exporting producer who cooperated in the original 
investigation  appears  to  have  only  slightly  increased  its  capacity  over  the  last  five 
years. There is publicly available information, however, that indicates that some of the 
other  major  producers  in  India  have  increased  their  capacity  more  significantly,  or 
intend to do so in the near future. In the request for an expiry review, the Community 
industry  estimates  that  the  total  capacity  of  the  Indian  producers  is  above  110  000 
tonnes,  well  above  the  current  production  level  of  about  40  000  tonnes  and 
representing  about  275%  of  Community  consumption.  In  the  absence  of  cooperation 
from  the  Indian  producers  and  more  reliable  information,  this  would  indicate  that  a 
large excess capacity is available indicating a likelihood of a resumption of exports to 
the Community should measures lapse. 

(28)  No information was available to the Commission on recent or planned investments by 

Indian exporters with a bearing on production capacity. 

(c) Circumvention / absorption practices in the past  

(29) 

It  is  argued  by  the  Community  industry  that,  at  the  same  time  as  the  exports  of  the 
products  subject  to  measures,  under  CN  heading  5607  (“Twine,  cordage,  rope  or 
cables…”) came to a halt, exports of products under CN heading 5609 (“Articles of … 
twine, cordage, rope or cables…”) increased sharply, from 200 tonnes to 800 tonnes 
between 1997 and 2002, while their average price decreased from € 2.51 to € 1.58 per 
ton. Articles exported under CN heading 5609 are produced by the same industry as, 
and  can  be  very  similar  to,  the  products  subject  to  measures,  to  the  point  of  raising 
problems of customs classification and inspection. This issue has been raised with the 
European  Commission,  the  national  customs  authorities  of  Italy  and  those  of  the 

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United  Kingdom  by  the  Community  industry.  As  a  result,  some  cases  of  wrong 
classification  have  been  confirmed  and  steps  have  been  taken  by  the  EU  Customs 
Administrations  in  order  to  avoid  possible  resulting  circumventions  of  the  existing 
anti-dumping measures. 

(30) 

Independently of the alleged circumvention, this behaviour can be taken as indication 
that the Indian export producers have a significant interest in entering the Community 
market. 

4. 

Conclusion on the likelihood of a recurrence of dumping 

(31)  The  facts  available  to  the  Commission  in  the  absence  of  cooperation  from  Indian 
exporting producers indicates that exports to third countries are still made at dumped 
prices,  with  dumping  margins  at  higher  levels  than  those  found  in  the  original 
investigation.  The  fact  that  average  export  prices  have  decreased  faster  than  normal 
values, indicates that the dumping behaviour of Indian exporters has not ceased after 
1997 but, if anything, has been accentuated on third country markets. 

(32)  The  indications  that  Indian  producers  that  keep  a  strategic  interest  in  the  European 
market, together with the huge spare capacity available, make it likely that they would 
resume exports to the Community in significant quantities should the measures lapse. 
Taking  into  account  the  facts  available  on  the  pricing  behaviour  of  the  Indian 
exporters on third country markets, on the decrease of normal value and the fact that 
the normal value of certain types of the product concerned is higher than prices on the 
EU  market,  it  is  highly  probable  that  a  resumption  of  exports  would  be  at  dumped 
prices.  It  is  therefore  concluded  that  the  expiry  of  measures  is  likely  to  lead  to  a 
recurrence of dumped exports.  

E. DEFINITION OF THE COMMUNITY INDUSTRY AND SAMPLING 

(33)  Ten  Community  producers  on  whose  behalf  the  request  for  an  expiry  review  was 
lodged  by  Eurocord  co-operated  in  the  investigation.  During  the  course  of  the 
investigation, it became apparent that data provided by one Community producer were 
unreliable  and  the  company  was  declared  as  non-cooperating  according  to  Article 
18(1) of the basic Regulation. Consequently  this  Community  producer was excluded 
from  the  definition  of  the  Community  industry.  The  nine  remaining  companies 
account  for  53%  of  the  Community  production  of  SFR  in  the  IP  and  therefore 
constitute the Community industry within the meaning of Article 4(1) and Article 5(4) 
of the basic Regulation. 

(34) 

In  view  of  the  large  number  of  Community  producers  supporting  the  request  for  an 
expiry  review,  and  in  conformity  with  Article  17  of  the  basic  Regulation,  the 
Commission  decided  to  carry  out  its  investigation  on  the  basis  of  a  sample  of 
Community  producers.  The  sample  was  selected  on  the  basis  of  the  largest 
representative  production  and  sales  volume  that  could  reasonably  be  investigated 
within the time available.  

(35)  As previously mentioned in recital (8), five companies were initially selected for the 
sample, based on their production and sales volumes as submitted after initiation. For 
the  reasons  mentioned  in  recital  (33)  above,  one  Community  producer  which  was 
disregarded as part of the Community industry had also to be taken out of the sample. 

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The remaining four sampled companies cover 66% of production and 62% of sales of 
the Community industry composed of the nine complaining companies as indicated in 
recital  (33).  The  final  sample  consisted  of  the  following  companies,  all  located  in 
Portugal: 

– 

– 

– 

– 

Companhia Industrial de Cerdas Artificiais, SA – (‘Cerfil’)  

Companhia Industrial Têxtil, S.A. – (‘Cordex’)  

Companhia de Têxteis Sintéticos, S.A. – (‘Cotesi’)  

Cordoaria Oliveira, SA  

(36) 

In  the  previous  investigation  the  sample  which  was  also  established  on  the  basis  of 
production  and  sales  volumes  consisted  of  eight  companies.  With  the  exception  of 
Cerfil, all the above-mentioned companies formed part of the sample in the previous 
investigation.  

F. SITUATION ON THE COMMUNITY MARKET 

1. 

Consumption in the Community market 

(37)  Apparent  Community  consumption  of  SFR  was  established  on  the  basis  of  sales 
volumes  of  the  Community  industry  and  of  other  Community  producers  on  the 
Community  market  plus  imports  from  India  and  other  third  countries  into  the 
Community, as based on Eurostat. 

(38)  Between  2000  and  the  IP,  the  apparent  Community  consumption  decreased  by  9.4% 
from 39 825 tonnes in 2000 to 36 093 tonnes in the IP. One of the main reasons for the 
drop in consumption relates to a decline in demand for SFR by the fishing net industry 
which  is  a  result  of  a  reduction  of  fishing  quotas  in  the  Community.  These  fishing 
quotas have gradually been reduced in the period considered from approximately 4.99 
million tonnes in 2000 to 4.12 million tonnes in 2003, i.e. by almost 17.4%. 

2. 

Imports from India  

(39)  After  measures  have  been  imposed  in  1998,  imports  originating  in  India  declined 
substantially and they were negligible throughout the period considered, with a market 
share below 0.1%. 

3. 

Imports from other third countries 

(40) 

Imports from other third countries have increased throughout the period considered, by 
44% (i.e. from 8 280 tonnes in 2000 to 11 893 in the IP). This represents an increase in 
market share from 20.8% in 2000 to 33.0%  in the IP. The most important  exporting 
countries  in  the  IP  were  the  acceding  countries  Czech  Republic,  Poland,  Hungary, 
followed  by  the  People’s  Republic  of  China  and  Tunisia.  Average  prices  from  the 
mentioned countries declined from € 3.3/kg to € 2.8/kg over the period considered. 

4. 

Economic situation of the Community industry  

Preliminary remarks 

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(41)  Since  the  original  investigation,  several  complaining  companies  have  completely 
stopped  their  activities  and  closed  down,  e.g.  Ostend  Stores  (Belgium),  Brindon 
Marine (UK), Irish Ropes (Ireland), Lima (Portugal) and Carlmark (Sweden). 

(42)  All injury indicators listed by Article 3(5) of the basic Regulation have been analysed 
in respect of the sampled companies. In addition, some of these injury indicators (i.e. 
production,  sales,  market  shares,  employment  and  productivity),  have  also  been 
analysed  in  respect  of  the  Community  industry  and  not  only  in  respect  of  the  four 
sampled companies.  

Data relating to the Community industry as a whole 

(43) 

In  line  with  the  decline  in  Community  consumption,  the  sales  volume  of  the 
Community industry on the Community market decreased over the period considered, 
although  not  by  the  same  magnitude.  Whereas  Community  consumption  went  down 
by 9.4%, the sales volume of the Community industry declined from 16 587 tonnes in 
2000 to 15 457 tonnes in the IP, i.e. by 6.8%.  

(44)  Production of the like product by the Community industry decreased during the period 

considered, by 3.9%, from 18 782 tonnes in 2000 to 18 053 tonnes in the IP.  

(45)  Given  the  fact  that  the  decline  in  consumption  in  the  Community  was  more 
pronounced  than  the  decline  in  sales  of  the  Community  industry  between  the  years 
2000 and the IP, the market shares of the Community industry improved slightly, from 
41.6% in 2000 to 42.8% in the IP.  

(46)  The  employment  situation  of  the  Community  industry  deteriorated  during  the  period 
considered, as there were 1 076 persons employed in 2000 compared to 992 persons in 
the IP. However, at the same time productivity, measured as production per year per 
employee, improved from 17 454 kg to 18 194 kg during the same period. 

Data relating to the sampled Community producers 

(a) Production, production capacity and capacity utilisation 

(47)  Whereas  the  production  capacity  remained  stable  over  the  period  considered,  the 
production volume of the sampled companies decreased slightly by 1.7% from 12 136 
tonnes  in  2000  to  11 928  tonnes  in  the  IP  leading  to  a  slight  decline  in  the  capacity 
utilisation from 87% in 2000 to 85% in the IP. 

(b) Stocks 

(48)  Regarding  stocks,  SFR  producers  keep,  in  general,  the  levels  of  their  stocks  below 
10%  of  the  production  volume  as  most  of  the  production  is  made  upon  demand. 
Nevertheless,  during  the  period  considered,  average  stocks  showed  a  negative 
tendency, increasing by 18%, from 853 tonnes in 2000 to 1 007 tonnes in the IP. 

(c) Sales volume and market share 

(49)  Sales volumes declined by 7.5%, from 10 484 tonnes in 2000 to 9 699 tonnes in the IP. 
However, as in the case of the Community industry as a whole, the market share of the 
sampled companies improved, rising slightly from 26.3% in 2000 to 26.9% in the IP. 

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(d) Sales prices, factors affecting Community prices and profitability 

(50)  Average  prices  of  the  like  product  sold  in  the  Community  remained  unchanged  at  € 
2.2/kg  throughout  the  period  considered.  Notwithstanding  the  stable  price  level,  the 
pre-tax profit margin dropped significantly, from 9.8% of turnover in 2000 to 0.7% in 
the IP, mainly as a result of increased average costs. 

(51)  The  main  factors  which  caused  these  stagnating  prices  were,  on  the  one  hand,  the 
deteriorated demand situation and, on the other hand, the impossibility, due to strong 
competition on the market, to raise the price level to the level before measures were 
put in place in 1998 when injurious dumping from India occurred.  

(e) Investments and ability to raise capital 

(52)  Despite  the  negative  development  of  the  above  injury  indicators,  investments 
increased,  from  €  809 432  in  2000  to  €  1 768 029  in  the  IP,  i.e.  by  118.4%.  The 
sampled companies did not report any difficulties in accessing new capital. 

(f) Return on investments  

(53) 

In  line  with  the  negative  profitability  trend,  the  return  on  investments  deteriorated 
from 12% in 2000 to 3% in the IP. 

(g) Cash flow 

(54)  Among the characteristics of this industry are its capital intensiveness and consequent 
high depreciation amounts which have a direct impact on cash flow. Throughout the 
period considered cash flows remained positive, albeit declining from € 4.66 million in 
2000 to € 2.23 million in the IP. 

(h) Employment, productivity and labour costs 

(55)  As  shown  in  the  analysis  of  the  Community  industry  as  a  whole,  the  employment 
situation  also  deteriorated  in  the  case  of  the  four  sampled  companies.  Employment 
declined  by  7.1%,  from  747  employees  in  2000  to  694  in  the  IP.  Productivity  per 
employee  improved  by  5.8%  during  the  period  considered.  The  improvement  in 
productivity  has  to  be  seen  as  a  result  of  the  investments  made  in  high  technology 
rope-making machines during the period considered. 

(56)  While  the  number  of  employees  in  the  sampled  companies  diminished  between  the 
year  2000  and  the  IP,  total  labour  costs  developed  in  the  opposite  direction  by 
increasing from € 4.49 million to € 4.84 million, i.e. by 7.8%. 

Magnitude of the dumping margin 

(57)  Due to the fact that imports of the product  concerned  from  India during  the IP were 

negligible, no dumping margin could be established.  

Recovery from past dumping 

(58) 

It was analysed whether the Community industry is still in the process of recovering 
from the effects of past dumping. It was concluded that in view of the various negative 

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economic indicators examined relating to the Community industry as a whole and to 
the  sampled  Community  producers,  it  is  likely  that  the  situation  of  Community 
industry, albeit partly improving, has still not fully recovered from the injurious effects 
of past dumping.  

Conclusion on the situation on the Community market 

(59)  Despite  the  fact  that  effective  anti-dumping  duties  against  imports  from  India  are  in 
place,  the  Community  industry  finds  itself  in  a  still  vulnerable  situation,  albeit  some 
indicators  show  an  improvement  in  comparison  with  the  original  definitive  findings 
(i.e.  profitability)  and  some  others  show  a  significant  positive  evolution  (i.e.  market 
share, investments and productivity).  

(60)  With the exception of market shares and investments, which increased, and production 
capacity,  average  prices  and  the  ability  to  raise  capital,  which  remained  stable,  all 
other injury indicators showed a negative development. Those factors which have been 
analysed for both the whole Community industry and for the sampled companies show 
similar trends.  

(61)  The  negative  development  of  the  industry  described  above  cannot,  in  view  of  the 
effective duties in place, be attributed to the imports from India. Instead the cause of 
the  weak  financial  situation  of  the  Community  industry  can  be  attributed  to  (i)  the 
declining  demand  situation  resulting  mainly  from  the  reduction  of  the  European 
fishing fleet and the decrease of fishing quotas, (ii) the remarkable increase of imports 
from and market shares of countries other than India (mainly from acceding countries) 
with  a  corresponding  loss  of  sales  volumes  by  the  Community  industry,  (iii)  prices 
which have never reached the pre-dumping levels due to the strong competition on the 
market resulting from the increase in imports from countries other than India and (iv) 
the downward trend in the economy as a whole as from the year 2001. 

(62)  On  the  other  hand,  it  was  found  that  the  profitability  of  the  Community  industry 
followed  a  less  favourable  trend  during  the  period  considered  in  the  original 
investigation (i.e. from January 1993 to May 1997) than during the period considered 
in  this  review.  This  indicates  a  relative  improvement  of  the  situation  of  the 
Community industry after duties have been imposed.  

(63)  As  far  as  the  viability  of  the  Community  industry  in  general  is  concerned,  one 
important  element  are  investments.  Investments  have  more  than  doubled  during  the 
period  considered  indicating  that  the  industry  still  considers  itself  as  viable. 
Furthermore,  the  improved  productivity  and  the  increase  in  market  share  of  the 
Community industry demonstrates that despite the fierce competition exerted by other 
third  countries,  the  Community  industry  managed  not  only  to  maintain,  but  also  to 
slightly strengthen its position on the Community market. 

G. LIKELIHOOD OF RECURRENCE OF INJURY 

(64)  With  regard  to  the  likely  effect  on  the  situation  of  the  Community  industry  of  the 
expiry  of  the  measures  in  force,  a  number of  factors  were  taken  into  account  in  line 
with the elements summarised in recitals (31) and (32). 

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(65)  As  already  indicated,  in  case  the  anti-dumping  measures  expired,  dumping  would 
resume  for  imports  of  the  product  concerned  from  India.  In  particular,  in  case  anti-
dumping  measures  expired  there  are  clear  indications  that  the  volume  of  dumped 
imports  into  the  Community  would  considerably  increase  due  to  the  huge  spare 
capacity  held  by  Indian  producers.  As  explained  in  recital  (27),  Indian  exporting 
producers hold a spare capacity of approximately 70 000 tonnes, i.e. almost twice the 
size of the Community market in the IP (36 093 tonnes).  

(66)  An analysis of exports made at allegedly dumped prices by Indian exporters to third 
countries (USA and Norway) shows clear indications that the price of Indian exports, 
if  they  resumed  into  the  Community,  would  undercut  the  Community  industry’s 
prices.  Indeed,  pursuant  to  official  trade  statistics  in  the  USA  and  Norway,  the 
weighted average export price of the product concerned was € 1.73/kg in the case of 
exports  to  the  USA  and  €  1.70/kg  in  the  case  of  exports  to  Norway.  These  average 
prices would undercut the Community industry’s average price for the like product by 
21% and 22%, respectively.  

(67)  The  Community  industry  is  still  in  a  difficult  situation,  in  particular  as  regards  its 
profitability which markedly improved just after the imposition of the measures under 
consideration,  but  significantly  deteriorated  again  thereafter,  due  to  causes  already 
explained in recital (51).  

(68)  On  the  basis  of  the  above,  it  is  concluded  that  in  case  the  measures  are  allowed  to 
expire,  there  is  a  likelihood  of  a  recurrence  of  injury  from  renewed  imports  of  the 
product concerned from India.  

H. COMMUNITY INTEREST 

1. 

Preliminary remarks 

(69) 

(70) 

In  accordance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether  a 
prolongation  of  the  existing  anti-dumping  measures  would  be  against  the  interest  of 
the  Community  as  a  whole.  This  analysis  was  based  on  an  examination  of  all  the 
various  interests  involved,  i.e.  those  of  the  Community  industry,  other  Community 
producers, the importers/traders as well as the users and raw material suppliers of the 
product concerned.  

It should be recalled that, in the previous investigation, the adoption of measures was 
considered  not  to  be  against  the  interest  of  the  Community.  The  present  review 
therefore  permits  an  analysis  as  to  whether,  following  the  introduction  of  the 
measures, the Community interest has been adversely affected by the introduction of 
these measures. 

(71)  On  this  basis,  it  was  examined  whether,  despite  the  likelihood  of  a  recurrence  of 
injurious dumping should measures expire, compelling reasons exist which would lead 
to conclude that it is not in the Community interest to maintain existing measures in 
this particular case.  

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2. 

Interests of the Community industry  

(72) 

In spite of the negative evolution of the financial situation of the Community industry 
during the period considered, this latter is structurally viable as it was able to maintain 
its substantial market share. Furthermore, the Community industry considers itself as 
viable  as  demonstrated  by  the  sharp  increase  in  its  investments  during  the  period 
considered. In view of the conclusions on the situation of the Community industry set 
out at recitals (59) to (61), especially in terms of the industry’s extremely low level of 
profitability,  and  pursuant  to  arguments  mentioned  under  section  G,  it  is  considered 
that  in  the  absence  of  measures,  the  Community  industry  is  likely  to  experience  a 
worsening of its financial situation. Given the expected volumes and prices of imports 
of  the  product  concerned  from  India  subsequent  to  an  expiry  of  the  measures,  the 
Community  industry  would  be  put  at  further  risk,  creating  a  decline  in  its  market 
shares, depressing its prices and provoking an evolution of its profitability akin to the 
negative  levels  found  during  the  period  considered  in  the  original  investigation. 
Hence, it is concluded that the maintenance of existing measures would not be against 
the interest of the Community industry. 

3. 

Interest of other producers 

(73)  The  Commission  requested  information  from  11  non-complainant  producers  in  the 

Community. No answer to the questionnaire was received.  

(74)  Taking  into  account  the  likely  quantities  and  prices  of  the  product  concerned  which 
would be exported from India to the Community if measures expired, non-complainant 
producers of the like product would also see their market share and economic situation 
deteriorated.  

(75) 

In these circumstances, and in the absence of any contrary indications, it is concluded 
that  the  continuation  of  measures  would  not  negatively  affect  the  non-complainant 
Community producers.  

4. 

Interest of unrelated importers/traders and suppliers of raw materials 

(76)  The  Commission  sent  questionnaires  to  6  unrelated  importers/traders  and  to  11 

suppliers of raw materials.  

(77)  Only  one  of  the  six  unrelated  importers/traders,  whose  purchases  of  the  product 
concerned during the IP represented 0.07% of the Community consumption, submitted 
some arguments against the continuation of the duties. However, this company did not 
provide any information or evidence relating to the impact that the imposition of the 
measures in force has had on its business nor did it properly assess to what extent the 
continuation  of  the  duties  would  prejudice  its  position  as  importer.  The  other  5 
unrelated importers did not submit any comment or information.  

(78)  On the other hand, one supplier of raw materials expressly supported the continuation 

of the measures.  

(79) 

In  these  circumstances,  it  is  concluded  that  the  continuation  of  measures  would  not 
negatively affect the unrelated importers/traders and the suppliers of raw materials.  

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5. 

Interest of users 

(80)  The  Commission  sent  questionnaires  to  23  users  of  the  product  concerned,  mainly 
consisting  of  fishing  and  shipping  industries.  No  user  submitted  a  complete 
questionnaire reply. One user objected to the continuation of the measures, but did not 
further substantiate its position.  

(81)  Due  to  the  almost  total  absence  of  co-operation  by  users,  and  to  the  fact  that  the 
impact  of  duties  is  negligible  compared  to  the  main  costs  incurred  by  the  users’ 
industry (i.e. depreciation of the vessels, fuel, insurance, labour and maintenance), it is 
concluded that the continuation of measures will not have a negative impact on such 
users.  

6. 

Conclusion 

(82)  The effects of the continuation of measures can be expected to assist the Community 
industry to improve profitability, with consequent beneficial effects on the competitive 
conditions on the Community market and the reduction of the threat of further closures 
and  reductions  in  employment.  The  beneficial  effects  are  also  expected  to  assist  the 
Community producers to take full advantage of the investments made in recent years, 
to  continue  developing  new  products  of  higher  technology  for  new  and  specialised 
applications. 

(83)  Given the above conclusions on the impact of the continuation of the measures on the 
different  players  on  the  Community  market,  it  is  concluded  that  the  continuation  of 
measures is not against the Community interest. 

I. ANTI-DUMPING MEASURES 

(84)  All  parties  concerned  were  informed  of  the  essential  facts  and  considerations  on  the 
basis  of  which  it  is  intended  to  recommend  the  maintenance  of  existing  measures  in 
their  present  form.  They  were  also  granted  a  period  to  make  representations 
subsequent  to  this  disclosure,  but  none  made  representations  which  would  have 
justified altering the above findings.  

(85) 

It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
Regulation, the anti-dumping duties imposed by Regulation (EC) No 1312/98 should 
be maintained, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  twine,  cordage, 
ropes and cables, whether or not plaited or braided and whether or not impregnated, 
coated,  covered  or  sheathed  with  rubber  or  plastics,  of  polyethylene  or 
polypropylene,  other  than  binder  and  baler  twine,  measuring  more  than  50  000 
decitex (5g/m), as well as of other synthetic fibres of nylon or other polyamides or of 
polyesters,  measuring  more  than  50  000  decitex  (5g/m)  imported  from  India  and 
classifiable within CN codes 5607 49 11, 5607 49 19, 5607 50 11 and 5607 50 19. 

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2. 

The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net,  free-at-
Community-frontier price, before duty shall be as follows:  

Products manufactured by  

– 

– 

Garware Wall Ropes Ltd.: 53.0% (additional TARIC code 8755)  

other manufacturers: 82.0% (additional TARIC code 8900) 

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

Article 2 

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

Article 3 

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

Done at Brussels,  

For the Council 
The President 

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