Proposal for a Council Regulation amending Regulations (EC) No 1975/2004 and (EC) No 1976/2004 extending definitive anti-dumping and countervailing duties on imports of polyethylene terephthalate (PET) film originating in India, to imports of polyethylene terephthalate (PET) film consigned from Brazil and from Israel, whether declared as originating in Brazil or Israel or not
Date: 2005-12-20
Institutions: European Commission
Subjects: Brazil, India, Israel, anti-dumping duty, anti-dumping legislation, import, originating product, plastics, thin sheet

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.12.2005 
COM(2005) 674 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulations (EC) No 1975/2004 and (EC) No 1976/2004 extending definitive 
anti-dumping and countervailing duties on imports of polyethylene terephthalate (PET) 
film originating in India, to imports of polyethylene terephthalate (PET) film consigned 
from Brazil and from Israel, whether declared as originating in Brazil or Israel or not  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/1996  of 
22 December 1995 on protection against dumped imports from countries not members 
of  the  European  Community  (‘the  basic  anti-dumping  Regulation’)  and  Council 
Regulation  (EC)  No  2026/97  of  6 October  1997  on  protection  against  subsidised 
imports  from  countries  not  members  of  the  European  Community  (‘the  basic  anti-
subsidy Regulation’), each as last amended by Council Regulation (EC) No 461/2004 
of  8  March  2004  in  the  proceeding  concerning  imports  of  polyethylene  terephthalate 
(PET) film originating in India. 

•  General context 

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

•  Existing provisions in the area of the proposal 

The  Council,  by  Regulations  (EC)  No  1676/2001  and  No  2597/1999  imposed 
antidumping  and  anti-subsidy  measures  respectively  on  PET  film  originating,  inter 
alia,  in  India.  By  Regulations  (EC)  No  1975/2004  and  No  1976/2004,  the  Council 
extended  these  measures  to  PET  film  consigned  from  Israel  and  from  Brazil  (‘the 
extended  measures’)  with  the  exception  of  imports  consigned  by  one  company 
specifically mentioned in each of those countries. 

•  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 
Regulations. 

•  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 Regulations. 

The  basic  Regulations  do  not  foresee  a  general  impact  assessment  but  contain  an 

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exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

In  August  2005,  the  Commission,  by  Regulation  (EC)  No  1370/2005  announced  the 
initiation  of  a  review  of  Council  Regulations  (EC)  No  1975/2004  and  No  1976/2004 
extending definitive anti-dumping and countervailing duties on imports of polyethylene 
terephthalate  (PET)  film  originating,  inter  alia,  in  India,  to  imports  of  that  product 
consigned  from,  inter  alia,  Israel  for  the  purposes  of  determining  the  possibility  of 
granting an exemption from those measures to one Israeli exporter, i.e. Hanita Coatings 
Rural Cooperative Association Ltd (‘Hanita’). This Regulation also repealed the anti-
dumping  duty  with  regard  to  imports  from  Hanita,  making  these  imports  subject  to 
registration. 

The investigation showed that Hanita’s exports to the Community of PET film under 
CN codes ex 3920 6219 or ex 3920 6290 began after the extension of measures, that 
Hanita’s  exports  to  the  Community  consisted  of  PET  film  products  manufactured  by 
them, using film of non-Indian origin, that Hanita is not related to any of the exporters 
or producers in the exporting country which are subject to the anti-dumping and anti-
subsidies measures on the product and that it has not circumvented the anti-dumping or 
countervailing measures in force. 

It  is  therefore  proposed  to  amend  Council  Regulations  (EC)  No  1975/2004  and  No 
1976/2004  in  order  to  exempt  Hanita  from  the  extended  measures  and  to  cease  the 
registration of imports of PET film consigned from Israel by Hanita, without collection 
of the anti-dumping duties. 

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

•  Legal basis 

Council  Regulation  (EC)  No  384/1996  of  22  December  1995  on  protection  against 
dumped imports from countries not members of the European Community (‘the basic 
anti-dumping  Regulation’)  and  Council  Regulation  (EC)  No  2026/97  of  6  October 
1997  on  protection  against  subsidised  imports  from  countries  not  members  of  the 
European Community, each as last amended by Council Regulation (EC) No 461/2004 
of 8 March 2004. 

•  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 reasons. 

The form of action is described in the above-mentioned basic Regulations and leaves 

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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  because  the  basic  Regulations  do  not  foresee 
alternative options. 

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulations (EC) No 1975/2004 and (EC) No 1976/2004 extending definitive 
anti-dumping and countervailing duties on imports of polyethylene terephthalate (PET) 
film originating in India, to imports of polyethylene terephthalate (PET) film consigned 
from Brazil and from Israel, whether declared as originating in Brazil or Israel or not  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,  

Having  regard  to  Council  Regulation  (EC)  No  384/961  of  22  December  1995  on  protection 
against dumped imports from countries not members of the European Community (‘the basic 
anti-dumping Regulation’), and in particular Articles 11(4) and 13(4) thereof, and to Council 
Regulation  (EC)  No  2026/972  of  6  October  1997  on  protection  against  subsidized  imports 
from  countries  not  members  of  the  European  Community  (‘the  basic  anti-subsidy 
Regulation’) and in particular Articles 20 and 23(3) thereof,  

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

Whereas: 

A.  MEASURES IN FORCE 

The  Council,  by  Regulations  (EC)  No  1676/20013  and  No  2597/19994  imposed 
antidumping  and  countervailing  measures  respectively  on  polyethylene  terephthalate 
(‘PET’) film originating, inter alia, in India. 

By Regulations (EC) No 1975/20045 and No 1976/20046, the Council extended these 
measures  to  PET  film  consigned  from  Israel  and  from  Brazil  (‘the  extended 
measures’)  with  the  exception  of  imports  produced  by  one  Brazilian  company, 
Terphane Ltda, and one Israeli company, Jolybar Ltd, specifically mentioned in each 
of those regulations. 

OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Council Regulation (EC) No 461/2004 (OJ L 77, 
13.3.2004, p. 12). 
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). 
OJ L 227, 23.8.2001, p. 1. 
OJ L 316, 10.12.1999, p. 1. 
OJ L 342, 15.11.2004, p. 1. 
OJ L 342, 15.11.2004, p. 8. 

(1) 

(2) 

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(3) 

On  10  December  20047,  the  Commission  initiated  an  expiry  review  of  the  definitive 
countervailing measures on the basis of Article 18 of the Basic Regulation. The repeal 
or  continuation  of  the  extended  measures  will  depend  on  the  findings  of  that 
investigation. 

B. 

CURRENT INVESTIGATION 

1.  Request for a review 

(4) 

(5) 

(6) 

(7) 

(8) 

The Commission subsequently received a request for an exemption from the extended 
measures  pursuant  to  Articles  11(4)  and  13(4)  of  the  basic  anti-dumping  Regulation 
and  Articles  20  and  23(3)  of  the  basic  anti-subsidy  Regulation.  The  application  was 
lodged by Hanita Coatings Rural Cooperative Association Ltd, Kibbutz Hanita, 22885, 
Israel (‘Hanita’), a producer in Israel (‘the country concerned’). 

2. 

Initiation of a review 

The  Commission  examined  the  evidence  submitted  by  Hanita  and  considered  it 
sufficient  to  justify  the  initiation  of  an  investigation  pursuant  to  Articles  11(4)  and 
13(4) of the basic anti-dumping Regulation and Articles 20 and 23(3) of the basic anti-
subsidy Regulation for the purposes of determining the possibility of granting Hanita 
an  exemption  from  the  extended  measures.  After  consultation  of  the  Advisory 
Committee,  and  after  the  Community  industry  concerned  had  been  given  the 
opportunity  to  comment,  the  Commission  initiated,  by  Regulation  (EC)  No 
1370/20058,  a  review  of  Regulations  (EC)  1975/2004  and  1976/2004  with  regard  to 
Hanita.  

The  Regulation  initiating  the  review  repealed  the  anti-dumping  duty  imposed  by 
Regulation  (EC)  No  1975/2004  with  regard  to  imports  of  the  product  under 
investigation  consigned  from  Israel  by  Hanita.  Simultaneously,  pursuant  to  Article 
14(5) of the basic anti-dumping Regulation, customs authorities were directed to take 
appropriate steps to register such imports. 

3. 

Product concerned 

The  product  concerned  is,  as  defined  in  the  original  investigation,  polyethylene 
terephthalate  (PET)  film  originating  in  India,  normally  declared  under  CN  codes  ex 
3920 62 19 and ex 3920 62 90 (‘the product concerned’).  

It is considered that the product concerned and PET film consigned from Israel to the 
Community  under  CN  codes  ex  3920  62  19  and  ex  3920  62  90  (‘the  product  under 
review’) have the same basic technical, physical and chemical characteristics and the 
same  uses.  Therefore,  they  are  considered  as  like  products  within  the  meaning  of 
Article  1(4)  of  the  basic  anti-dumping  Regulation  and  Article  1(5)  of  the  basic  anti-
subsidy Regulation. 

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OJ C 306, 10.12.2004, p. 2. 
OJ L 218, 23.8.2005, p. 3. 

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4. 

Investigation 

(9) 

The  Commission  officially  advised  Hanita  and  the  representatives  of  the  country 
concerned of the initiation of the review. Interested parties were invited to make their 
views  known  and  informed  of  the  possibility  to  request  a  hearing.  No  such  request 
was, however, received. 

(10)  The  Commission  also  sent  out  a  questionnaire  to  Hanita  and  received  a  satisfactory 
reply  within  the  relevant  deadline.  The  Commission  sought  and  verified  all  the 
information deemed necessary for the purposes of the review. A verification visit was 
carried out at Hanita’s premises. 

5. 

Investigation period 

(11)  The investigation covered the period from 1 January 2004 to 30 June 2005 (‘the IP’). 
Data was collected from 2001 up to the end of the IP to investigate any change in the 
pattern of trade. 

C. 

RESULTS OF THE INVESTIGATION 

(12)  The investigation confirmed that Hanita did not export the product under review to the 
Community  during  the  investigation  period  of  the  investigation  that  led  to  the 
extended measures, i.e. 1 January to 31 December 2003. Hanita’s first exports of the 
product under review occurred subsequent to the extension of measures.  

(13)  Furthermore,  according  to  documentary  evidence  submitted,  Hanita  was  able  to 
satisfactorily demonstrate that it did not have any direct or indirect links with any of 
the  Indian  exporting  producers  or  Israeli  companies  subject  to  the  anti-dumping  and 
countervailing measures in force. 

(14)  As  already  mentioned  at  recital  (12),  Hanita’s  exports  to  the  Community  of  the 
product  under  review  first  occurred  after  the  extension  of  measures.  Hanita  converts 
and  slits  purchased  PET  film  and  produces  a  range  of  products,  some  of  which  fall 
under the same CN codes as the product concerned. The PET film processed by Hanita 
and  exported  to  the  Community  does  not  use  any  inputs  from  India.  It  is  therefore 
concluded that this is not a practice constituting circumvention.  

D. 

AMENDMENT OF THE MEASURES BEING REVIEWED 

(15) 

In accordance with the above findings that Hanita was found not to have circumvented 
the measures in force, the company should be exempted from the extended measures.  

(16)  The registration of imports of PET film consigned from Israel by Hanita, as imposed 
by  the  initiating  Regulation,  should  cease.  In  accordance  with  Article  14(5)  of  the 
basic anti-dumping Regulation, which provides that measures shall be applied against 
registered  imports  from  the  date  of  registration,  no  anti-dumping  duty  should  be 
collected on imports of PET film consigned from Israel by Hanita which entered the 
Community under registration imposed by the initiating Regulation. 

(17)  The exemption from the extended measures granted to PET film produced by Hanita 
shall,  in  accordance  with  Article  13(4)  of  the  basic  anti-dumping  Regulation  and 
Article 23(3) of the basic anti-subsidy Regulation, remain valid under the requirement 

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that  it  is  not  established  that  the  exemption  was  granted  on  the  basis  of  false  or 
misleading  information  submitted  by  the  company  concerned.  Should  prima  facie 
evidence indicate otherwise,  an investigation may be initiated by the Commission to 
establish if withdrawal of the exemption is warranted. 

(18)  The exemption from the extended measures of imports of PET film from Hanita was 
established on the basis of the findings of the present review. This exemption is thus 
exclusively applicable to imports of PET film consigned from Israel and produced by 
that specific legal entity. Imported PET film produced or consigned by any company 
not specifically mentioned in Article 1(1) of Regulations (EC) No 1975/2004 and (EC) 
No  1976/2004  with  its  name  and  address,  including  entities  related  to  those 
specifically mentioned, cannot benefit from the exemption and should be subject to the 
residual  duty  rate  as  imposed  by  Council  Regulations  (EC)  No  1676/2001  and  (EC) 
No 2597/1999. 

E. 

PROCEDURE 

(19)  Hanita and all other interested parties were informed of the facts and considerations on 
the basis of which it was intended to grant an exemption to Hanita from the extended 
measures and no comments were received, 

HAS ADOPTED THIS REGULATION: 

1. 

Article 1(1) of Regulation (EC) No 1975/2004 shall be replaced by the following: 

Article 1 

‘1.  The  definitive  anti-dumping  duty  of  53,3%  imposed  by  Council  Regulation 
(EC)  No  1676/2001  on  imports  of  polyethylene  terephthalate  film  originating  in 
India, falling within CN codes ex 3920 62 19 and ex 3920 62 90, is hereby extended 
to  imports  of  the  same  polyethylene  terephthalate  film  consigned  from  Brazil  and 
consigned  from  Israel  (whether  declared  as  originating  in  Brazil  or  Israel  or  not) 
(TARIC codes 3920 62 19 01, 3920 62 19 04, 3920 62 19 07, 3920 62 19 11, 3920 
62 19 14, 3920 62 19 17, 3920 62 19 21, 3920 62 19 24, 3920 62 19 27, 3920 62 19 
31, 3920 62 19 34, 3920 62 19 37, 3920 62 19 41, 3920 62 19 44, 3920 62 19 47, 
3920 62 19 51, 3920 62 19 54, 3920 62 19 57, 3920 62 19 61, 3920 62 19 67, 3920 
62 19 74, 3920 62 19 92, 3920 62 90 31, 3920 62 90 92) with the exception of those 
produced  by  Terphane  Ltda,  BR  101,  km  101,  City  of  Cabo  de  Santo  Agostinho, 
State of Pernambuco, Brazil (TARIC additional code A569), by Jolybar Filmtechnic 
Converting  Ltd  (1987),  Hacharutsim  str.  7,  Ind.  Park  Siim  2000,  Natania  South, 
42504,  POB  8380,  Israel  (TARIC  additional  code  A570)  and  by  Hanita  Coatings 
Rural Cooperative Association Ltd, Kibbutz Hanita, 22885, Israel (TARIC additional 
code A691).’. 

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2. 

Article 1(1) of Regulation (EC) No 1976/2004 shall be replaced by the following: 

‘1.  The  definitive  countervailing  duty  of  19,1%  imposed  by  Council  Regulation 
(EC)  No  2597/1999  on  imports  of  polyethylene  terephthalate  film  originating  in 
India, falling within CN codes ex 3920 62 19 and ex 3920 62 90, is hereby extended 
to  imports  of  the  same  polyethylene  terephthalate  film  consigned  from  Brazil  and 
consigned  from  Israel  (whether  declared  as  originating  in  Brazil  or  Israel  or  not) 
(TARIC codes 3920 62 19 01, 3920 62 19 04, 3920 62 19 07, 3920 62 19 11, 3920 
62 19 14, 3920 62 19 17, 3920 62 19 21, 3920 62 19 24, 3920 62 19 27, 3920 62 19 
31, 3920 62 19 34, 3920 62 19 37, 3920 62 19 41, 3920 62 19 44, 3920 62 19 47, 
3920 62 19 51, 3920 62 19 54, 3920 62 19 57, 3920 62 19 61, 3920 62 19 67, 3920 
62 19 74, 3920 62 19 92, 3920 62 90 31, 3920 62 90 92) with the exception of those 
produced  by  Terphane  Ltda,  BR  101,  km  101,  City  of  Cabo  de  Santo  Agostinho, 
State of Pernambuco, Brazil (TARIC additional code A569), by Jolybar Filmtechnic 
Converting  Ltd  (1987),  Hacharutsim  str.  7,  Ind.  Park  Siim  2000,  Natania  South, 
42504,  POB  8380,  Israel  (TARIC  additional  code  A570)  and  by  Hanita  Coatings 
Rural Cooperative Association Ltd, Kibbutz Hanita, 22885, Israel (TARIC additional 
code A691).’. 

The registration of imports of PET film imposed by Article 3 of Commission Regulation (EC) 
No 1370/2005 shall cease without the collection of anti-dumping duties. 

Article 2 

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 Brussels,  

For the Council 
The President 

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