Proposal for a Council Regulation amending Council Regulation (EC) No 428/2005 imposing definitive anti-dumping duty on imports of polyester staple fibres originating in the People’s Republic of China and Saudi Arabia
Date: 2005-07-18
Institutions: European Commission
Subjects: China, Saudi Arabia, anti-dumping duty, anti-dumping legislation, man-made fibre, originating product, plastics

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.07.2005 
COM(2005) 316 final 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 428/2005 imposing definitive anti-dumping duty 
on imports of polyester staple fibres originating in the People’s Republic of China and 
Saudi Arabia 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of 
22 December 1995 on protection against dumped imports from countries not members 
of  the  European  Community,  as  last  amended  by  Council  Regulation  (EC)  No 
461/2004 of 8 March 2004, ("the basic Regulation") in amending Council Regulation 
428/2005 imposing definitive anti-dumping duties on imports of polyester staple fibre 
(PSF) originating, inter alia, in Saudi Arabia 

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•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation 

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•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceeding  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic regulation. 

The  basic  regulation  does  not  foresee  a  general  impact  assessment  but  contains  an 
exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

305 

•  Summary of the proposed action 

By Council Regulation Nº 428/2005 of 10 March 2005, the Council imposed definitive 
anti-dumping duties on imports of polyester staple fibre originating, inter alia, in Saudi 

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Arabia. 

Following  several  meetings  between  Saudi  Basic  Industries  Corporation  (SABIC)  in 
Saudi  Arabia  and  the  Commission  services,  an  acceptable  undertaking  offer  was 
received prior to the publication of the definitive findings. 

Since it was administratively impossible to include the acceptance of the undertaking 
in the definitive Regulation, it is proposed to accept the undertaking offer and to amend 
Council Regulation (EC) Nº 428/2005 accordingly.  

Member  States  were  consulted  and  the  proposed  course  of  action  was  unanimously 
supported. 

It  is  therefore  proposed  that  the  Commission  adopt  the  attached  draft  Decision 
accepting the undertaking and the proposal for Council Regulation amending Council 
Regulation  (EC)  Nº  428/2005  and  publish  them  as  soon  as  possible  in  the  Official 
Journal of the European Union.  

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•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community,  as  last 
amended by Council Regulation (EC) No 461/2004 of 8 March 2004. 

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•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The form of action is described in the above-mentioned basic regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason(s). 

The above-mentioned basic regulation does not foresee alternative options. 

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4)  BUDGETARY IMPLICATION 

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The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 428/2005 imposing definitive anti-dumping duty 
on imports of polyester staple fibres originating in the People’s Republic of China and 
Saudi Arabia 

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 Articles 8 and 9 thereof,  

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

Whereas: 

A. PROCEDURE 

(1) 

(2) 

(3) 

The Council, by Regulation (EC) No 428/20052 (“the definitive Regulation”), imposed 
definitive anti-dumping duties on imports of polyester staple fibre (“PSF”) originating 
in  the  People’s  Republic  of  China  and  Saudi  Arabia,  amended  the  definitive  anti-
dumping duties in force on such imports originating in South Korea and terminated the 
anti-dumping proceeding in respect to such imports originating in Taiwan.  

Saudi  Basic  Industries  Corporation  (“Sabic”),  on  its  behalf  and  of  all  related 
companies, including the related producer of the product concerned Arabian Industrial 
Fibres Company (Ibn Rushd), offered an acceptable undertaking prior to publication of 
the  definitive  findings  but  at  a  stage  when  it  was  administratively  impossible  to 
include its acceptance in the definitive Regulation.  

The  Commission, by Decision  XXXX,  accepted the undertaking offer by Sabic. The 
reasons  for  accepting  this  undertaking  are  set  out  in  this  Decision.  The  Council 
recognises that the revisions introduced to the undertaking offer eliminate the injurious 
effect  of  dumping  and  limits  to  a  sufficient  degree  the  risk  of  circumvention  in  the 
form of cross-compensation with other products.  

(4) 

In view of the acceptance of the undertaking offer it is necessary to amend Regulation 
(EC) No 428/2005 accordingly. 

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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 71, 17.3.2005, p.1 

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HAS ADOPTED THIS REGULATION: 

Article 1 

In Regulation (EC) No 428/2005, the following paragraphs shall be inserted in Article 1: 

“4. 

Imports  declared  for  release  into  free  circulation  shall  be  exempt  from  the  anti-
dumping duties imposed by paragraphs 1 and 2, provided that they are manufactured, 
shipped  and  invoiced  by  companies  from  which  undertakings  are  accepted  by  the 
Commission  and  whose  names  are  listed  in  the  relevant  Commission  Decision  or 
Regulation,  as  from  time  to  time  amended,  and  have  been  imported  in  conformity 
with the provisions of the same Commission Decision or Regulation. 

5. 

The imports mentioned in paragraph 4 shall be exempt from the anti-dumping duty 
on condition that:  

(a) 

(b) 

the  goods  declared  and  presented  to  customs  correspond  precisely  to  the 
product described in paragraph 1, 

a  commercial  invoice  containing  at  least  the  elements  listed  in  the  Annex  is 
presented  to  Member  States'  customs  authorities  upon  presentation  of  the 
declaration for release into free circulation, and 

(c) 

the  goods  declared  and  presented  to  customs  correspond  precisely  to  the 
description on the commercial invoice.”. 

The  text  as  set  out  in  the  Annex  to  this  Regulation  shall  be  added  to  Regulation  (EC)  No 
428/2005. 

Article 2 

This Regulation shall enter into force 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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ANNEX  

The  following  elements  shall  be  indicated  in  the  commercial  invoice  accompanying  the 
company’s  sales  of  polyester  staple  fibres  to  the  Community  which  are  subject  to  an 
Undertaking: 

1. 

2. 

3. 

4. 

5. 

6. 

The  heading  ‘COMMERCIAL  INVOICE  ACCOMPANYING  GOODS  SUBJECT 
TO AN UNDERTAKING’. 

The  name  of 
the  Commission 
Regulation/Decision  [INSERT  NUMBER]  accepting  the  undertaking  issuing  the 
commercial invoice. 

the  company  mentioned 

in  Article  1  of 

The commercial invoice number. 

The date of issue of the commercial invoice. 

The TARIC additional code under which the goods on the invoice are to be customs 
cleared at the Community frontier. 

The exact description of the goods, including: 

– 

– 

– 

– 

– 

Product code number (PCN) used for the purposes of the investigation and the 
undertaking (e.g. PCN 1, PCN 2, etc), 

plain language description of the goods corresponding to the PCN concerned, 

company product code (CPC) (if applicable), 

CN code, 

quantity (to be given in kilograms). 

7. 

The description of the terms of the sale, including: 

– 

– 

– 

– 

price per kilogram, 

the applicable payment terms, 

the applicable delivery terms, 

total discounts and rebates. 

8. 

Name  of  the  company  acting  as  an  importer  in  the  Community  to  which  the 
commercial invoice accompanying goods subject to an undertaking is issued directly 
by the company. 

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9. 

The name of the official of the company that has issued the invoice and the following 
signed declaration: 

‘I, the undersigned, certify that the sale for direct export to the European Community 
of the goods covered  by  this invoice is being made within the scope and under the 
terms  of  the  undertaking  offered  by  [company],  and  accepted  by  the  European 
Commission  through  Regulation/Decision  [INSERT  NUMBER],  I  declare  that  the 
information provided in this invoice is complete and correct.’ 

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