Council Regulation (EC) No 2167/2005 of  20 December 2005  amending Regulation (EC) No 1467/2004 imposing definitive anti-dumping duties on imports of polyethylene terephtalate ( PET ) originating,  inter alia , in the People’s Republic of China
Date: 2005-12-20
Institutions: Council of the European Union
Subjects: CCT duties, China, anti-dumping duty, anti-dumping legislation, plastics, plastics industry

28.12.2005

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Official Journal of the European Union

L 345/11

COUNCIL REGULATION (EC) No 2167/2005

of 20 December 2005

amending Regulation (EC) No 1467/2004 imposing definitive anti-dumping duties on imports of
polyethylene terephtalate (‘PET’) originating, inter alia, in the People’s Republic of China

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
(‘the
countries not members of the European Community (1)
basic Regulation’), and in particular Article 11(4) thereof,

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

Whereas:

A. MEASURES IN FORCE

(1)

(2)

of

imports

polyethylene

The measures currently in force on imports into the
Community
terephthalate
(‘PET’) originating, inter alia, in the People’s Republic of
China (‘PRC’), are definitive anti-dumping duties imposed
by Council Regulation (EC) No 1467/2004 (2). Pursuant
to the same Regulation, anti-dumping duties were also
imposed on imports of PET originating in the Republic
of Australia.

B. CURRENT INVESTIGATION

1. Request for a review

After the imposition of definitive anti-dumping duties on
imports of PET originating in the PRC, the Commission
received a request to initiate a ‘new exporter’ review of
Regulation (EC) No 1467/2004, pursuant
to Article
11(4) of the basic Regulation, from Jiangyin Chengsheng
New Packing Material Co., Ltd (the ‘applicant’). The
applicant claimed that it was not related to any of the
exporting producers in the PRC subject
to the anti-
dumping measures
in force with regard to PET.
Furthermore, it claimed that it had not exported PET to
the Community during the original investigation period
(‘the original IP’,
i.e. the period from 1 April 2002 to
31 March 2003), but had started to export PET to the
Community thereafter.

(4)

(5)

(6)

(7)

2. Initiation of a ‘new exporter’ review

(3)

The Commission examined the evidence submitted by
the applicant and considered it sufficient to justify the

(8)

initiation of a review in accordance with Article 11(4) of
the basic Regulation. After consultation of the Advisory
Committee and after the Community industry concerned
the
had been given the opportunity to comment,
(EC) No
Commission
523/2005 (3),
(EC) No
1467/2004 with
and
commenced its investigation.

Regulation
review of Regulation
to

initiated,
a

applicant

regard

the

by

to the Commission Regulation initiating the
Pursuant
review, the anti-dumping duty of EUR 184/t imposed
by Regulation (EC) No 1467/2004 on imports of PET
produced by the applicant was repealed. Simultaneously,
pursuant
the basic Regulation,
customs authorities were directed to take appropriate
steps to register such imports.

to Article 14(5) of

3. Product concerned

The product concerned by the current review is the same
as that in the investigation that led to the imposition of
the measures in force on imports of PET originating in
investigation’),
the PRC (‘original
i.e. PET having a
viscosity number of 78 ml/g or higher, according to
the ISO Standard 1628-5, classified under CN Code
3907 60 20.

4. Parties concerned

The Commission officially advised the applicant and the
representatives of the exporting country of the initiation
of the review. Interested parties were given the oppor-
tunity to make their views known in writing and to be
heard.

The Commission also sent a market economy treatment
(‘MET’) claim form and a questionnaire to the applicant
for that
and received replies within the deadlines set
purpose. The Commission sought and verified all the
information it deemed necessary for the determination
of dumping, including the MET claim, and a verification
visit was carried out at the premises of the applicant.

5. Investigation period

The investigation of dumping covered the period from
1 October 2003 to 31 December 2004 (‘the investi-
gation period’ or ‘IP’).

(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 271, 19.8.2004, p. 1.

(3) OJ L 84, 2.4.2005, p. 9.

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Official Journal of the European Union

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C. RESULTS OF THE INVESTIGATION

3. Dumping

1.

‘New exporter’ qualification

Determination of normal value

(9)

(10)

The investigation confirmed that the applicant had not
exported the product concerned during the original IP
and that
it had begun exporting to the Community
after this period.

Furthermore, the applicant was able to demonstrate that
it was not related to any of the exporters or producers in
the PRC which are subject to the anti-dumping measures
in force on imports of PET originating in the PRC.

(11)

In this context, it is confirmed that the applicant should
be considered a ‘new exporter’ in accordance with Article
11(4) of the basic Regulation.

2. Market economy treatment (‘MET’)

(12)

Pursuant to Article 2(7)(b) of the basic Regulation,
in
anti-dumping investigations concerning imports origi-
nating in the PRC, normal value shall be determined in
accordance with paragraphs 1 to 6 of the said Article for
those producers which were found to meet the criteria
laid down in Article 2(7)(c) of the basic Regulation, i.e.
is shown that market economy conditions
where it
prevail
in respect of the manufacture and sale of the
like product. These criteria are set out in a summarised
form below:

— business decisions are made in response to market
signals, without significant State interference, and
costs reflect market values,

— firms have one clear set of basic accounting records
which are independently audited in line with interna-
tional accounting standards (‘IAS’) and are applied for
all purposes,

(15) As far as the determination of normal value is concerned,
the total
the Commission first established whether
domestic sales of the product concerned made by the
applicant were representative in comparison with its
total export sales to the Community.
In accordance
with Article 2(2) of the basic Regulation, domestic sales
were considered representative when the total domestic
sales volume was at least 5 % of the total export sales
volume to the Community. The Commission established
that PET was sold domestically by the applicant in overall
representative volumes.

(16) No distinction of

types was made for

the product
concerned. No additional examination therefore needed
to be made whether domestic sales were sufficiently
representative on a type-by-type basis for the purposes
of Article 2(2) of the basic Regulation.

(17) An examination was also made as to whether the sales of
PET sold domestically in representative quantities could
be regarded as having been made in the ordinary course
of trade, by establishing the proportion of profitable sales
of PET to independent customers. Since the profitable
sales volume of PET represented more than 80 % of
the total domestic sales volume of PET, normal value
was based on the actual domestic price, calculated as a
weighted average of the prices of all domestic sales of
PET made during the IP,
irrespective of whether these
sales were profitable or not.

(18)

in accordance with Article 2(1) of

Consequently,
the
basic Regulation, normal value was based on the prices,
paid or payable, on the domestic market of the PRC.

— no distortions carried over

from the non-market

economy system,

Export price

— bankruptcy and property laws guarantee stability and

legal certainty,

— exchange rate conversions are carried out at market

rates.

(13)

(14)

The Commission sought
necessary and verified all
MET application at
question.

all

deemed
information
information submitted in the
the company in

the premises of

The investigation showed that all five criteria laid down
in Article 2(7)(c) of the basic Regulation were met by the
applicant. It was therefore considered that MET should be
granted to the applicant.

(19)

The product concerned was exported directly to inde-
pendent customers in the Community. Therefore,
the
export price was established in accordance with Article
2(8) of the basic Regulation, i.e. on the basis of export
prices actually paid or payable.

Comparison

(20)

The normal value and export prices were compared on
an ex-works basis. For the purpose of ensuring a fair
comparison between the normal value and the export
price, due allowance in the form of adjustments was
made for differences affecting price comparability in
accordance with Article 2(10) of the basic Regulation.
Appropriate
cases
where they were found to be reasonable, accurate and
supported by verified evidence.

adjustments were granted in all

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Dumping margin

F. DISCLOSURE

(21) As provided for under Article 2(11) of the basic Regu-
lation, the weighted average normal value was compared
with the weighted average export price of the product
concerned.

(27)

The parties concerned were informed of the essential
facts and considerations on the basis of which it was
intended to impose on imports of PET from the
applicant an amended definitive anti-dumping duty and
to levy this duty retroactively on imports made subject to
registration. Their comments were considered and taken
into account where appropriate.

(22)

(23)

(24)

(25)

The comparison showed the existence of dumping. This
dumping margin expressed as a percentage of the net,
free-at-Community-frontier
for
Jiangyin Chengsheng New Packing Material Co., Ltd is
5,6 %.

unpaid,

price,

duty

(28)

the date on which the
This review does not affect
imposed by Council Regulation (EC) No
measures
1467/2007 will expire pursuant to Article 11(2) of the
basic Regulation,

D. AMENDMENT OF THE MEASURES BEING REVIEWED

HAS ADOPTED THIS REGULATION:

the results of

In the light of
is
considered that a definitive anti-dumping duty should
be imposed for
the
the applicant at
dumping margin found.

the investigation,

the level of

it

Regarding the form of the measure,
it was considered
that the amended anti-dumping duty should take the
same form as the duties imposed by Regulation (EC)
No 1467/2004. It was established that PET prices can
fluctuate in line with fluctuations in crude oil prices.
Therefore it was considered appropriate to impose
duties in the form of a specific amount per tonne. Subse-
quently, the anti-dumping duty, calculated on the basis of
the dumping margin expressed as a percentage,
to
imports of PET from Jiangyin Chengsheng New Packing
Material Co. Ltd is EUR 45 per tonne.

The dumping margin, established for the IP, of 5,6 % is
below the country-wide injury elimination level of
27,3 %, which was established for
the PRC in the
original
is therefore proposed that a
duty at the level of EUR 45 per tonne, which is based
on the dumping margin of 5,6 %, shall be imposed and
that Council Regulation (EC) No 1467/2004 be
accordingly amended.

investigation.

It

Article 1

The table in Article 1(2) of Council Regulation (EC)

1.
No 1467/2004 is hereby amended by adding the following:

‘Country

Company

The People’s
Republic of China

Jiangyin Chengsheng
New Packing
Material Co., Ltd

Rate of
duty

TARIC
additional
code

45 EUR/t A510’

The duty hereby imposed shall also be levied retroactively
the product concerned which have been
to Article 3 of Commission Regulation

2.
on imports of
registered pursuant
(EC) No 523/2005.

The customs authorities are hereby directed to cease the regis-
tration of imports of the product concerned originating in the
People’s Republic of China produced by Jiangyin Chengsheng
New Packing Material Co. Ltd.

E. RETROACTIVE LEVYING OF THE ANTI-DUMPING
DUTY

(26)

In the light of the above findings, the anti-dumping duty
applicable to the applicant shall be levied retroactively on
imports of the product concerned which have been made
subject
to Article 3 of
to registration pursuant
Commission Regulation (EC) No 523/2005.

Unless otherwise

3.
concerning customs duties shall apply.

specified,

the provisions

in force

Article 2

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

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

Done at Brussels, 20 December 2005.

For the Council
The President

B. BRADSHAW