Notice of initiation of an expiry review of the countervailing measures applicable to imports of polyethylene terephthalate (PET) film originating in India
Date: 2004-12-10
Institutions: European Commission
Subjects: India, countervailing charge, export subsidy, import, originating product, plastics

C 306/2

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Official Journal of the European Union

10.12.2004

Notice of initiation of an expiry review of the countervailing measures applicable to imports of
polyethylene terephthalate (PET) film originating in India

(2004/C 306/02)

Following the publication of a notice of impending expiry (1) of
the countervailing measures in force on imports of polyethy-
lene terephthalate (PET)
(country
concerned), the Commission has received a request for review
pursuant
to Article 18 of Council Regulation (EC) No
2026/97 (2) (the basic Regulation).

film originating in India,

or other regional governments and confer a benefit to the reci-
pients, i.e. to exporters/producers of PET film. They are alleged
to be contingent upon export performance and therefore
specific and countervailable or to be otherwise specific and
countervailable.

1. Request for review

The request was lodged on 10 September 2004 by the
following Community producers: DuPont Teijin Films, Mitsu-
bishi Polyester Film GmbH, Nuroll SpA, Toray Plastics Europe
(the applicants), representing a major proportion, in this case
more than 50 %, of the total Community production of PET
film.

2. Product

The product under review is polyethylene terephthalate (PET)
film originating in India (the product concerned), currently clas-
sifiable within CN codes ex 3920 62 19 and ex 3920 62 90.
These CN codes are given only for information.

3. Existing measures

The measures currently in force are a definitive countervailing
duty imposed by Council Regulation (EC) No 2597/1999s (3).

4. Grounds for the review

The applicants have provided evidence that the expiry of the
measures would lead to a continuation of subsidisation and
injury.

is alleged that

the exporters/producers of

It
the product
concerned have benefited and will continue to benefit from a
number of subsidies granted by the Government of
India.
These alleged subsidies consist of schemes of benefits to indus-
tries located in special economic zones/export oriented units;
the advance licenses; advance release orders scheme; the duty
entitlement passbook scheme; an income tax exemption; the
export promotion capital goods scheme; the duty free replen-
ishment certificate; the package scheme of incentives of the
Government of Maharashtra, the sales tax incentives scheme of
the State of Uttaranchal, special import licences, capital infu-
sions and export credits.

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

(1) OJ C 62, 11.3.2004, p. 4.
(2) OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Council

Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(3) OJ L 316, 10.12.1999, p. 1.

The applicants have provided evidence that imports of the
product concerned from India have increased overall in abso-
lute terms.

is also alleged that

the volumes and the prices of

It
the
imported product concerned have continued, among other
consequences, to have a negative impact on the level of prices
charged by the Community industry, resulting in substantial
adverse effects on the overall performance, the financial situa-
tion and the employment situation of the Community industry.

5. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an
expiry review, the Commission hereby initiates a review in
accordance with Article 18 of the basic Regulation.

5.1. Procedure for the determination of likelihood of subsidi-

sation and injury

The investigation will determine whether the expiry of the
measures would be likely, or unlikely, to lead to a continuation
or recurrence of subsidization and injury.

(a) Sampling

In view of the apparent number of parties involved in this
proceeding,
to apply
the Commission may decide
sampling, in accordance with Article 27 of the basic Regu-
lation.

(i) Sampling for investigation of subsidisation in India

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
the following information on their company or
companies within the time limit set
in paragraph
6(b)(i) and in the formats indicated in paragraph 7 of
this notice:

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

and/or telex numbers and contact person,

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— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community and exports to other countries
(separately) during the period 1 October 2003 to
30 September 2004,

— the turnover

in local currency and the sales
volume in tonnes for the product concerned on
the domestic market during the period 1 October
2003 to 30 September 2004,

— whether the company intends to claim an indivi-
dual subsidy rate (individual subsidy rates can only
be claimed by producers (1)),

— the precise activities of the company with regard

to the production of the product concerned,

— the volume in tonnes of the product concerned
produced, the production capacity and the invest-
ments in production capacity during the period
1 October 2003 to 30 September 2004,

— the names and the precise activities of all related
companies (2)
involved in the production and/or
selling (export and/or domestic) of the product
concerned,

— any other relevant information that would assist
the Commission in the selection of the sample,

— an indication of whether the company or compa-
nies agree to their inclusion in the sample, which
implies replying to a questionnaire and accepting
an on-the-spot investigation of their response,

— an indication on whether the company is recog-

nised as an export oriented unit,

— an indication on whether the company is located

in a special economic 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 authori-
ties of the exporting country, and any known associa-
tions of exporters/producers.

(ii) Sampling for Community producers

In view of the large number of Community producers
supporting the request, the Commission intends to
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

(1) Individual margins may be claimed pursuant to Article 27(3) of the

basic Regulation for companies not included in the sample.

(2) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 of 2 July
1993 laying down provisions for the implementation of Council
Regulation (EEC) No 2913/92 establishing the Community Customs
Code (OJ L 253, 11.10.1993, p. 1).

provide the following information on their company
or companies within the time limit set in paragraph
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 2003 to 30 September
2004,

— the precise activities of the company with regard

to the production of the product concerned,

— the value (in EUR) of

the product
concerned made in the Community market during
the period 1 October 2003 to 30 September
2004,

sales of

— the volume in tonnes of sales of

the product
concerned made in the Community market during
the period 1 October 2003 to 30 September
2004,

— the volume in tonnes of the production of the
product concerned during the period 1 October
2003 to 30 September 2004,

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

companies
selling of the product concerned,

— any other relevant information that would assist
the Commission in the selection of the sample,

— an indication of whether the company or compa-
nies agree to their inclusion in the sample, which
implies replying to a questionnaire and accepting
an on-the-spot investigation of their response.

(iii) Final selection of the samples

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

samples

The Commission intends to make the final selection of
after having consulted the parties
the
concerned that have expressed their willingness to be
included in the sample.

Companies included in the samples must reply to a
questionnaire within the time limit set in paragraph
6(b)(iii) of this notice and must co-operate within the
framework of the investigation.

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forthcoming,

sufficient cooperation is not

If
the
Commission may base its findings, in accordance with
Articles 27(4) and 28 of the basic Regulation, on the
facts available. A finding based on facts available may
be less advantageous
to the party concerned, as
explained in paragraph 8 of this notice.

(b) Questionnaires

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 in India, to any association of exporters/produ-
cers, to the importers, to any association of importers
named in the request or which cooperated in the investiga-
tion leading to the measures subject to the present review,
and to the authorities of the exporting country concerned.

In any event, all parties should contact the Commission
forthwith by fax in order to find out whether they are
listed in the request and if necessary request a question-
naire within the time limit set in paragraph 6(a)(i), given
that the time limit set in paragraph 6(a)(ii) of this notice
applies to all interested parties.

(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 informa-
tion and supporting evidence must reach the Commission
within the time limit set in paragraph 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 paragraph
6(a)(iii) of this notice.

5.2. Procedure for the assessment of Community interest

In accordance with Article 31 of the basic Regulation and in
the event that the likelihood of continuation or recurrence of
subsidisation and injury is confirmed, a determination will be
made as to whether to maintain or repeal the anti-subsidy
measures would not be against the Community interest. For
this reason the Community industry, importers, their represen-
tative associations,
representative users and representative
consumer organisations, provided that they prove that there is
an objective link between their activity and the product
concerned, may, within the general time limits set in paragraph
6(a)(ii) of this notice, make themselves known and provide the
Commission with information. The parties which have acted in
conformity with the previous sentence may request a hearing,
setting the particular reasons why they should be heard, within
the time limit set in paragraph 6(a)(iii) of this notice. It should
be noted that any information submitted pursuant to Article

31 will only be taken into account if supported by factual
evidence at the time of submission.

6. Time limits

(a) General time limits

(i) For parties to request a questionnaire

All
interested parties who did not cooperate in the
investigation leading to the measures subject to the
present review should request a questionnaire as soon
as possible, but not later than 15 days after the publi-
cation of this notice in the Official Journal of the Euro-
pean Union.

(ii) For parties to make themselves known, to submit

questionnaire 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 Commis-
their views and submit questionnaire
sion, present
replies or any other information within 40 days of the
date of publication of this notice in the Official Journal
the European Union, unless otherwise specified.
of
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 question-
naire replies within the time limit specified in para-
graph 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

the European Union, given that
to consult parties

information specified in paragraph 5.1(a)(i)
should reach the Commission within 15 days of the
date of publication of this notice in the Official Journal
the Commission
of
intends
concerned that have
expressed their willingness to be included in the
sample on its final selection within a period of 21
days of the publication of this notice in the Official
Journal of the European Union.

(ii) All other information relevant for the selection of the
sample as referred to in 5.1(a)(iii) must reach the
Commission within a period of 21 days of the publi-
cation of this notice in the Official Journal of the Euro-
pean Union.

(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.

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7. Written submissions, questionnaire replies and corre-

8. Non-cooperation

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.
All written submissions, including the information requested in
this notice, questionnaire replies and correspondence provided
by interested parties on a confidential basis shall be labelled as
‘Limited (1)’ and, in accordance with Article 29(2) of the basic
Regulation,
accompanied by a non-confidential
version, which will be labelled ‘For inspection by interested
parties’.

shall be

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.

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. If an interested
party does not cooperate or cooperates only partially and find-
ings are therefore based on facts available in accordance with
Article 28 of the basic Regulation,
the result may be less
favourable to that party than if it had cooperated.

9. Schedule of the review investigation

The review investigation will be concluded, according to Article
22(1) of the basic Regulation, within 15 months of the date of
the publication of this notice in the Official Journal of the Euro-
pean Union.

(1) This means that

the document

is for internal use only.

the European Parliament and of

is
protected pursuant to Article 4 of Regulation (EC) No 1049/2001
of
(OJ L 145,
31.5.2001, p. 43). It is a confidential document pursuant to Article
29 of Council Regulation (EC) No 2026/97 (OJ L 288, 21.10.1997,
p. 1) and Article 12 of the WTO Agreement on Subsidies and Coun-
tervailing Measures.

the Council

It