Council Regulation (EC) No 1736/2004 of 4 October 2004 imposing a definitive anti-dumping duty on imports of synthetic fibre ropes originating in India
Date: 2004-10-04
Institutions: Council of the European Union
Subjects: India, anti-dumping duty, anti-dumping legislation, man-made fibre, textile industry, textile product

8.10.2004

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1736/2004

of 4 October 2004

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
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1)
(the
basic Regulation), and in particular Article 11(2) thereof,

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

Whereas:

(1)

(2)

A. PREVIOUS INVESTIGATION

By Regulation (EC) No 1312/98 (2), the Council imposed
definitive anti-dumping measures on imports of synthetic
fibre ropes (SFR) originating in India.

B. PRESENT INVESTIGATION

the anti-dumping measures in force,

impending
Following the publication of a notice of
expiry (3) of
the
for an expiry review
Commission received a request
lodged by
the Liaison Committee of EU 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.

(1) 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).

(2) OJ L 183, 26.6.1998, p. 1.
(3) OJ C 240, 5.10.2002, p. 2.

(3)

(4)

(5)

(6)

(7)

after

determined,
that

consulting
sufficient evidence existed for

the Advisory
Having
the
Committee,
initiation of a review,
the Commission initiated an
investigation (4) 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
relevant for the assessment of a likelihood of a conti-
nuation or recurrence of injury covered the period from
1 January 2000 up to the end of the IP (the period
considered).

advised

officially

producers,

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

other

the

the

The Commission requested information from all
the
abovementioned 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 four exporting
producers located in India, six 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 ques-
tionnaire was received from these interested parties.

(4) OJ C 149, 26.6.2003, p. 12.

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(8)

(9)

(10)

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

the likelihood of continuation or

The Commission sought and verified all the information
it deemed necessary for the purpose of the determination
of
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 NV (Belgium),

— Companhia Industrial de Cerdas Artificiais, SA —

Cerfil (Portugal),

therefore the same basic physical and chemical character-
istics. Therefore they are considered to be like products
within the meaning of Article 1(4) of the basic Regu-
lation.

(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
some quality
differences exist between the two types of products.

respects, as

identical

in all

(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.

— Companhia Industrial Têxtil, SA — Cordex (Portugal),

(14)

— Companhia de Têxteis Sintéticos, SA — Cotesi

(Portugal),

— Cordoaria Oliveira, SA (Portugal).

in the current

investigation, and in the
Furthermore,
the
imposition of
investigation which led to 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.

C. PRODUCT CONCERNED AND LIKE PRODUCT

D. LIKELIHOOD OF RECURRENCE OF DUMPING

1. Product concerned

(15)

The product concerned is the same as that in the inves-
tigation 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
than 50 000 decitex
baler
(5 g/m), as well as of other synthetic fibres of nylon or
other polyamides or of polyesters, measuring more than
50 000 decitex (5 g/m). It is currently classifiable within
CN codes 5607 49 11, 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.

twine, measuring more

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
in the
identical and share
Community are in all

the Community producers

respects

sold

by

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

1. Preliminary remarks

for

stated at

an expiry review, one

(16) Of the four Indian exporting producers named in the
request
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 ques-
tionnaire reply had elapsed. A third company stated
that it had not exported to the Community during the
it had ceased activity and
IP, and furthermore that
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 Regu-
lation.

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(17) Given that none of

to the

the Indian exporting producers
replied
the Commission
questionnaire of
services, use was made, in accordance with the provisions
of Article 18 of
the facts
available, including those submitted by the Community
industry in its request for an expiry review.

the basic Regulation, of

to

unlikely

have
Indian normal value of

been
investigation are
original
In addition,
some
reversed.
the product concerned during the IP was
types of
than prices on the EU market during that
higher
in the event of
It
therefore,
period.
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.

likely,

that

is

(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.

(23) More detailed calculations per tariff code, submitted by
the Community industry for Indian exports to the United
States of America and Norway, during the IP, take into
consideration the differences in prices and normal values
between different types of synthetic fibre ropes. These
to third
calculations
countries are still dumped at margins between 53,4 %
and 222,2 %.

Indian exports

indicate

that

(20)

(21)

2. Dumping of

imports during the investigation

period

(24)

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.

In the absence of exports and of cooperation by Indian
exporters of the product concerned in the investigation,
the level of dumping during the IP has not been estab-
lished. 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
than that
found in the original investigation.

level

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 cooperation by Indian exporters of the
product concerned, normal value has also decreased by
similar percentages in the five years subsequent to 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 investi-
gation. According to Indian export statistics, the volume
classifiable under CN
of
the majority of
subheadings 5607 49 and 5607 50,
which consist of the product concerned,
increased by
104 % between 1997/98 and 2002/2003.

the products

exports of

i.e.

(22) According to Indian export statistics, the average prices
for Indian exports to all countries, of the two product
groupings concerned,
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 United States of America, when taken
separately. Those declines are more pronounced than that
of the normal value, as mentioned in recital 21, and
the
therefore any dumping practices at

the time of

(26)

The observed export prices from India to third country
than the
export markets are 17 % to 61 % lower
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.

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(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
about 275 % of
and representing
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.

(32)

(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

(33)

(29)

(30)

(31)

increased sharply,

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…)
from 200 tonnes to 800
tonnes between 1997 and 2002, while their average
price decreased from EUR 2,51 to EUR 1,58 per tonne.
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
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
the existing anti-dumping
resulting circumventions of
measures.

of

the

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

circumvention,

alleged

4. Conclusion on the likelihood of a recurrence of

dumping

The facts available to the Commission in the absence of
cooperation from Indian exporting producers indicates
that
at
dumped prices, with dumping margins at higher levels
than those found in the original investigation. The fact

to third countries

still made

exports

are

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.

that

Indian producers

The indications
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
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.

that

E. DEFINITION OF THE COMMUNITY INDUSTRY AND

SAMPLING

Ten Community producers on whose behalf the request
for an expiry review was lodged by Eurocord cooperated
in the investigation. During the course of the investi-
gation,
it became apparent that data provided by one
Community producer were unreliable and the company
was declared as non-cooperating according to Article
this
18(1) of
Community producer was excluded from the definition
of
remaining
companies
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.

industry. The nine
for 53 % of

the basic Regulation. Consequently

the Community
account

(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,

as

volumes

five companies
were initially selected for the sample, based on their
submitted after
production and sales
initiation. For the reasons mentioned in recital 33, one
Community producer which was disregarded as part of
the Community industry had also to be taken out of the
sample. The remaining four sampled companies cover
66 % of production and 62 % of
the
Community industry composed of the nine complaining
companies as indicated in recital 33. The final sample
consisted of
located in
the following companies, all
Portugal:

sales of

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— Companhia Industrial de Cerdas Artificiais, SA —

(Cerfil),

— Companhia Industrial Têxtil, SA — (Cordex),

followed by the People's
Republic, Poland, Hungary,
Republic of China and Tunisia. Average prices from the
mentioned countries declined from EUR 3,3/kg
to
EUR 2,8/kg over the period considered.

— Companhia de Têxteis Sintéticos, SA — (Cotesi),

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

4. Economic situation of the Community industry

— 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 abovementioned companies formed part
of the sample in the previous investigation.

F. SITUATION ON THE COMMUNITY MARKET

1. Consumption in the Community market

(41)

Since the original
several complaining
investigation,
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.

(37) Apparent Community consumption of SFR was estab-
lished 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
into the Community, as based on
third countries
Eurostat.

(43)

(38)

the apparent Community
Between 2000 and the IP,
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 %.

D a t a r e l a t i n g t o t h e C o m m u n i t y i n d u s t r y a s a
w h o l e

In line with the decline in Community consumption, the
the Community industry on the
sales volume of
Community market decreased over the period considered,
same magnitude. Whereas
although not
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 %.

the

by

(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.

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 %.

(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.

3. Imports from other third countries

(40)

from other

third countries have

the period considered, by 44 % (i.e.

increased
Imports
throughout
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

(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 produc-
tivity, measured as production per year per employee,
improved from 17 454 kg to 18 194 kg during the
same period.

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r e l a t i n g

D a t a
p r o d u c e r s

t o t h e

s a m p l e d C o m m u n i t y

(f) Return on investments

(a) Production, production capacity and capacity utilisation

(47) Whereas the production capacity remained stable over
the period considered,
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.

the production volume of

(b) Stocks

(48)

in general, the
Regarding stocks, SFR producers keep,
the production
levels of
their stocks below 10 % of
the production is made upon
volume as most of
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.

(d) Sales prices, factors affecting Community prices and profit-

ability

the

remained

sold in the
(50) Average prices of
Community
EUR 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.

like product
unchanged

at

(51)

The main factors which caused these stagnating prices
the deteriorated demand
were, on the one hand,
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 EUR 809 432 in
2000 to EUR 1 768 029 in the IP, i.e. by 118,4 %. The
sampled companies did not report any difficulties in
accessing new capital.

(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 EUR 4,66 million in 2000 to EUR 2,23
million in the IP.

(h) Employment, productivity and labour costs

the

(55) As shown in the analysis of the Community industry as a
whole, the employment situation also deteriorated in the
sampled companies. Employment
case of
four
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

employees

the number of

sampled
companies diminished between the year 2000 and the
IP, total labour costs developed in the opposite direction
by increasing from EUR 4,49 million to EUR 4,84
million, i.e. by 7,8 %.

in the

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

(57) Due to the fact that imports of the product concerned
from India during the IP were negligible, no dumping
margin could be established.

R e c o v e r y f r o m p a s t d u m p i n g

(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 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.

C o n c l u s i o n
C o m m u n i t y m a r k e t

o n

t h e

s i t u a t i o n

o n

t h e

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

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and production capacity,

(60) With the exception of market shares and investments,
which increased,
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.

imports of

In particular,

(65) As already indicated, in case the anti-dumping measures
the
expired, dumping would resume for
product concerned from India.
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
Indian exporting producers hold a spare
recital 27,
i.e. almost
capacity of approximately 70 000 tonnes,
in the IP
the Community market
twice the size of
(36 093 tonnes).

(61)

The negative development of
the industry described
above cannot,
in view of the effective duties in place,
Instead the
be attributed to the imports from India.
cause of the weak financial situation of the Community
industry can be attributed to (i) the declining demand
the
situation resulting mainly from the reduction of
European fishing fleet and the decrease of
fishing
imports from
quotas,
and market
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.

the remarkable increase of

countries other

shares of

(ii)

Indian exports,

(66) An analysis of exports made at allegedly dumped prices
by Indian exporters to third countries (United States of
America and Norway) shows clear indications that the
price of
they resumed into the
if
Community, would undercut the Community industry's
prices. Indeed, pursuant to official trade statistics in the
United States of America and Norway,
the weighted
the product concerned was
average export price of
EUR 1,73/kg in the case of exports to the United States
of America and EUR 1,70/kg in the case of exports to
the
Norway. These average prices would undercut
like
the
average price
Community
product by 21 % and 22 %, respectively.

industry's

for

(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.

(67)

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

the imposition of

is

element

important

concerned, one

Investments have more
the period considered indicating

(63) As far as the viability of the Community industry in
are
general
than doubled
investments.
during
the
that
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.

(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
the
product concerned from India.

injury from renewed imports of

H. COMMUNITY INTEREST

1. Preliminary remarks

(69)

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.
the Community industry, other Community
those of
producers,
the importers/traders as well as the users
and raw material suppliers of the product concerned.

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Official Journal of the European Union

8.10.2004

(70)

the interest of

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

introduction of

the measures,

the

(71) On this basis, it was examined whether, despite the like-
lihood 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.

(72)

2. Interests of the Community industry

In spite of
the financial
the negative evolution of
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 demon-
strated 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
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.

imports of

4. Interest

of

unrelated

importers/traders

and

suppliers of raw materials

(76)

The Commission sent questionnaires to six unrelated
importers/traders and to 11 suppliers of raw materials.

0,07 % of

the Community

(77) Only one of the six unrelated importers/traders, whose
purchases of the product concerned during the IP repre-
sented
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
the measures in force has had on its
imposition of
business nor did it properly assess to what extent the
continuation of the duties would prejudice its position
as importer. The other five 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,
nuation of measures would not negatively affect
unrelated importers/traders and the suppliers of
materials.

it is concluded that the conti-
the
raw

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 ques-
tionnaire reply. One user objected to the continuation of
the measures, but did not
its
position.

substantiate

further

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.

(81) Due to the almost total absence of cooperation 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 conti-
nuation of measures will not have a negative impact on
such users.

(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.

(82)

(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.

6. Conclusion

the continuation of measures can be
The effects of
expected to assist the Community industry to improve
profitability, with consequent beneficial effects on the
competitive conditions on the Community market and
further closures and
the reduction of
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.

the threat of

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Official Journal of the European Union

L 311/9

(83) Given the above conclusions on the impact of the conti-
nuation 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,

measuring more than 50 000 decitex (5 g/m), as well as of other
synthetic fibres of nylon or other polyamides or of polyesters,
measuring more than 50 000 decitex (5 g/m) originating in
India
5607 49 11,
5607 49 19, 5607 50 11 and 5607 50 19.

classifiable within

CN codes

and

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).

HAS ADOPTED THIS REGULATION:

Article 2

Article 1

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

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
twine,
or polypropylene, other

than binder

and baler

Article 3

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

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

Done at Luxembourg, 4 October 2004.

For the Council
The President

A. J. DE GEUS