Council Regulation (EC) No 695/2006 of  5 May 2006  amending Regulation (EC) No 397/2004 imposing a definitive anti-dumping duty on imports of cotton-type bedlinen originating in Pakistan
Date: 2006-05-05
Institutions: Council of the European Union
Subjects: Pakistan, anti-dumping duty, anti-dumping legislation, cotton, import, originating product, textile product

L 121/14

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Official Journal of the European Union

6.5.2006

COUNCIL REGULATION (EC) No 695/2006

of 5 May 2006

amending Regulation (EC) No 397/2004 imposing a definitive anti-dumping duty on imports of
cotton-type bedlinen originating in Pakistan

THE COUNCIL OF THE EUROPEAN UNION,

(3)

Having regard to the Treaty
Community,

establishing the European

i.e. that the impediment

In the period following the imposition of
the anti-
dumping measures, sufficient information was received
by the Commission indicating that the security circum-
to the
stances had changed,
conduct of verification visits had been removed. Under
these circumstances, the Commission decided to initiate
an interim review limited to dumping aspects in order to
review the findings on the basis of data that have been
fully verified and better reflect the situation of Pakistani
exporters.

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(3) thereof,

2. Initiation

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Previous investigation

By Regulation (EC) No 397/2004 (2) (the definitive Regu-
lation), the Council
imposed a definitive anti-dumping
duty of 13,1 % on imports of bedlinen of cotton fibres,
pure or mixed with man-made fibres or flax (flax not
being the dominant
fibre), bleached, dyed or printed,
originating in Pakistan.

This measure had been imposed on the basis of facts
available since it had been impossible to verify on spot
the highly implausible figures reported in the question-
naires of
the six sampled companies, due to the
following circumstances. During the verification of the
second company, the Commission received a life threa-
tening letter addressed personally to the officials carrying
out the verifications. With regard to the specific, personal
nature of this letter, the Commission considered that the
necessary conditions to carry out the verifications were
not met and that
significantly
impeded the investigation. Consequently, the verification
visits had to be interrupted.

these circumstances

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

(2) OJ L 66, 4.3.2004, p. 1.

(4)

(5)

(6)

consulted the Advisory Committee (3),

On 3 August 2004, the Commission announced, after
having
the
initiation pursuant to Article 11(3) of the basic Regu-
lation of an ex officio partial
limited to
dumping, of the anti-dumping measures imposed by the
definitive Regulation.

interim review,

the

advised

officially

exporting
The Commission
producers and importers known to be concerned as
well as their known associations, the Pakistani authorities
and the associations of Community producers of
the
Interested parties were
initiation of
given the opportunity to make their views known in
writing and to request a hearing within the time limits
set in the notice of initiation.

the investigation.

A number of exporting producers and the Pakistan
Bedwear Exporters Association, one of several bedlinen
producers associations in Pakistan, as well as the asso-
ciation of the Community producers (Eurocoton), which
was the complainant in the original investigation, made
their views known in writing. A hearing was granted to
all parties who so requested within the established time
limits and showed that
there were reasons why they
should be heard.

3. Sampling

(7)

In view of the large number of exporting producers and
importers involved in this investigation, sampling was
envisaged in the notice of initiation, in accordance with
Article 17 of the basic Regulation.

(3) OJ C 196, 3.8.2004, p. 2.

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(8)

(9)

(10)

(11)

(12)

(13)

if so,

In order to enable the Commission to decide whether
sampling would be necessary and,
to select a
sample, exporting producers,
importers and represen-
tatives acting on their behalf were requested to make
themselves known and to provide, as specified in the
notice of initiation, basic information on their activities
related to the product concerned within 15 days of the
date of publication of the notice of initiation. The autho-
rities of Pakistan and the association of producers/ex-
porters, which made itself known, were also consulted
by the Commission on the selection of the sample for
exporters.

(14)

In total, 110 companies

After examination of the information submitted, it was
decided that sampling was only necessary with regard to
replied to the
exporters.
sampling questionnaire within the
limits and
provided the requested information. However, 11 of
these companies neither produced nor exported the
product concerned and therefore could not be considered
as interested parties in the investigation. Furthermore,
one company only partially cooperated as it did not
provide any information on production volumes.
In
total, 98 companies were considered as cooperating.

time

types under consideration),

it was considered
product
that
such individual examinations would be unduly
burdensome within the meaning of Article 17(3) of the
basic Regulation and would have prevented completion
of the investigation in good time. The claims for deter-
mination of
individual margins were therefore not
considered.

5. Investigation

to particular

sample. Questionnaire

The Commission sent questionnaires to the companies
selected in the
replies were
received from all the eight exporting producers in the
the
sample. The Commission sought and verified all
information it deemed necessary for the purpose of its
investigation. However,
security
due
constraints,
it was decided not to carry out the verifi-
cation visits at the premises of the companies. Instead,
the verification of the submitted data took place in a
third country,
in this particular case the United Arab
Emirates (UAE), by using systems of communication
with the headquarters of
the companies investigated.
This allowed receiving, without delay transmission, of
any
the
following companies was verified:

requested. Data provided

document

by

The sample was selected in accordance with Article 17(1)
of the basic Regulation, on the basis of the largest repre-
sentative volume of exports from Pakistan into the
Community
investigated
within the time available.

could reasonably be

that

The Commission informed the Pakistani authorities and
the associations of producers/exporters of its intention to
select a sample of eight companies representing 31 % of
Pakistan's exports
to the Community. The Pakistani
authorities and one association of exporters, however,
contested this proposal and asked to limit the sample
to six companies, i.e. taking the same sample as in the
previous investigation.

this

consultation,

In accordance with Article 17(1) of the basic Regulation,
after
the Commission eventually
decided that, in order to reach the highest possible repre-
sentativity of the sample, it was appropriate to include
eight companies in the sample since (i) this allowed to
including from
cover a larger volume of exports,
companies having also domestic sales; and (ii)
it was
feasible to investigate these eight companies within the
time available.

4. Individual examination

Requests for the determination of an individual dumping
margin were submitted by 22 companies not selected in
in view of the large number of
the sample. However,
requests
information to be
and
the large number of
examined (because of,

volume of
inter alia,

the

Gul Ahmed Textile Mills Ltd, Karachi,

Al-Abid Silk Mills Ltd, Karachi,

Yunus Textile Mills, Karachi,

Chenab Limited, Faisalabad,

Nishat Mills Limited, Faisalabad,

Fairdeal Textiles (Pvt) Ltd, Karachi,

Lucky Textile Mills, Karachi,

Mohammad Farooq Textile Mills Ltd, Karachi.

(15)

The Community industry observed that the investigation
should have been terminated as no change has taken
place in the security situation in Pakistan. Therefore,
the verification visit in the UAE should not have taken
place. In this respect, it should be noted that the infor-
mation provided in the course of these verifications was
sufficient to establish the level of dumping. However, the
comments made by the Community industry have been
taken into account in assessing the lasting nature of the
changed circumstances, as indicated in recital 64.

(16)

The investigation period (IP) covered the period between
1 April 2003 and 31 March 2004.

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B. PRODUCT CONCERNED AND LIKE PRODUCT

C. DUMPING

1. Product concerned

1. Normal value

(17)

The product under review is the same as in the original
investigation, i.e. bedlinen of cotton fibres, pure or mixed
with man-made fibres or
flax (flax not being the
dominant fibre), bleached, dyed or printed, originating
currently classifiable within CN codes
in Pakistan,
6302 21 00 81,
ex 6302 21 00
code
(TARIC
6302 21 00 89),
6302 22 90 19),
code
(TARIC
(TARIC code
6302 31 00 90)
6302 32 90 19)
concerned). Bedlinen
includes bed sheets (fitted or flat), duvet covers and
pillow covers, packaged for sale either separately or in
sets.

codes
ex 6302 22 90
6302 31 00

and
(the product

ex 6302 32 90

(TARIC

(24) Normal value was calculated according to Article 2 of the
it was first established for
basic Regulation. Therefore,
each sampled exporting producer, whether
total
domestic sales of the like product were representative
in comparison with its total export sales of the product
concerned to the Community. In accordance with Article
2(2), first sentence, of the basic Regulation, the domestic
sales of the like product were found to be representative
for one of the sampled companies since the domestic
sales volume of this company exceeded 5 % of its total
export sales volume to the Community.

its

(18)

The fabrics made of cotton-type fibres used to produce
bedlinen are identified by two pairs of numbers. The first
one indicates the count (or weight) of yarns employed
respectively for the warp and for the weft. The second
one indicates the number of threads per centimetre or
per inch respectively of the warp and of the weft.

(25)

(19)

The fabrics are bleached, dyed or printed. Then they are
cut and stitched into different sized flat sheets,
fitted
sheets, duvet covers and pillow cases. The final product
is packed for sale either separately or in sets.

(20) Notwithstanding the different possible product types due
to different weaving construction, finish of the fabric,
presentation and size, packing, etc., all of them constitute
one product for the purpose of this review investigation
because they have the same physical characteristics and
essentially the same use.

(21)

This definition was contested by several cooperating
exporters which, however, did not substantiate in any
way their claims, which were therefore rejected.

2. Like product

(22) As in the original

investigation,

it was found that the
product concerned and the bedlinen produced and sold
on the domestic market of Pakistan have the same basic
physical,
technical characteristics and uses. They are
therefore considered to be alike within the meaning of
Article 1(4) of the basic Regulation.

(23)

Several cooperating exporters claimed that the product
concerned and the bedlinen sold on the domestic market
of Pakistan were different products since they did not
technical characteristics
have the same basic physical,
and uses. However, no evidence was
submitted to
support these claims, which were therefore rejected.

(26)

(27)

exports

exceeding 5 % of

its
three other

In addition to the above exporter with representative
sales
sales
domestic
sampled
volume
to the Community,
exporters had some domestic sales of
the product
concerned, which, however, only represented 2,2, 0,5
and 0,2 % respectively of
the
product concerned exported to the Community. After
having
the
the
domestic market and of the sales organisation of the
companies in question,
it was finally concluded that
these sales were negligible and could not be considered
as representative pursuant to Article 2(2) of the basic
Regulation.

the sales volume of

characteristics of

examined

duly

types

to the

sold for

For the exporting producer having overall representative
domestic sales, it was further examined whether the types
of bedlinen sold domestically were identical or directly
comparable
to the
Community. Domestic sales of a particular product
type were considered as sufficiently representative when
the volume of that product type sold on the domestic
market to independent customers during the IP repre-
sented 5 % or more of
the
identical and directly comparable product type sold for
export to the Community.

the total volume of

export

that

It was subsequently examined whether the domestic sales
of the company could be considered as being made in
the ordinary course of trade. For those product types
type was
where the weighted average price of
equal to or above the cost of production, normal value
was established on the basis of the weighted average
price actually paid for all domestic sales of that type,
irrespective of whether these sales were profitable or
not. For
the weighted
average price of
type was below the cost of
production, it was considered that normal value had to
be constructed in accordance with Article 2(3) of the
basic Regulation.

those product

types where

that

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(28)

The company had contested that its sales were in the
ordinary course of trade, claiming that remnants sold
on the domestic market were not comparable with the
products sold for export. In the course of the investi-
the remnants were
gation,
surplus quantities of bedlinen produced for export, and
as a consequence the products sold domestically and for
export are comparable. It is therefore considered that the
company's domestic sales are representative and being
made in the ordinary course of trade.

it was established that

(29) Normal value was constructed by adding to the manu-
facturing costs of
the exported types a reasonable
amount for selling, general and administrative expenses
(SG & A) and for profit, in accordance with Article 2(6)
of the basic Regulation.

(33)

(30)

(31)

types)

company has

In this respect, the company claimed that SG & A and
profit should be established on the basis of all trans-
actions, as due to the large diversity of
the product
submitted information regarding
(the
it cannot
more than 500 different product
reliably be established whether a certain transaction is
the product
profitable or not.
is indeed true that
It
concerned consists of a vast array of
types with
different sizes, designs, colours, fabrics etc. In establishing
the cost of manufacturing for the different types of the
product, the general cost allocation methods used by the
company entailed a lack of precision which goes clearly
beyond the difficulties normally encountered in cases
with complex products. It was therefore considered that
SG & A and profit used to construct normal value should
be established on the basis of all transactions for all
domestic sales of the product concerned.

transactions

challenged the

The Community industry
approach
adopted in respect of this company, claiming that only
should have been used to
profitable
determine the percentage of profit
realised by the
company in the ordinary course of trade. This claim
was rejected, since for the reasons given in recital 30,
it cannot be established reliably whether a certain trans-
action is profitable or not. Moreover, it was established
that overall the transactions were in the ordinary course
of trade.

(32)

For the other seven sampled exporting producers, normal
values had to be constructed in accordance with Article
2(3) of the basic Regulation since none of them had
representative domestic sales. For all
these exporters,
therefore, normal value was constructed by adding to
the cost of manufacturing of each type exported to the
further
Community, corrected where appropriate as

amount

reasonable

for
a
explained in recital 36,
SG & A expenses and for profit. The SG & A expenses
and profit could not be established on the basis of
Article 2(6)(a) of the basic Regulation since only one
company had representative domestic sales. Neither
could they be established under Article 2(6)(b) as the
exporters concerned did not have representative sales,
in the ordinary course of trade, of the same general
category of products.

The SG & A expenses and profit were accordingly
determined in accordance with Article 2(6)(c) of
the
basic Regulation, on the basis of the weighted average
of the SG & A expenses incurred and profit realised by
the sole company with representative domestic sales and
of the two companies with domestic sales representing
2,2 and 0,2 % respectively. In fact, it was considered that
the domestic sales of
two companies,
although not representative for the purpose of using
domestic prices to calculate their own normal value,
were sufficient to ensure that the related SG & A and
profit could be considered as reliable for the purpose
of applying Article 2(6)(c) of the basic Regulation. The
SG & A and profit of the third company having non-
representative sales on the domestic market, referred to
at recital 25, were not taken into consideration since this
company had reported a severe loss on those sales.

these latter

(34) One company claimed that

those products

the Commission should
apply Article 2(6)(b) of the basic Regulation when deter-
mining the SG & A for this company. The company
claimed that the SG & A for all the products sold on
the domestic market by the company should be used
to the product
since
concerned, being of
the same general category of
products. This claim was rejected since it was found
that the products claimed to be of the same general
category of products as bedlinen, were in fact mostly
grey cloth, i.e. an intermediary product sold to industrial
users and not a consumer product as bedlinen.

similar

are

(35)

The company further argued that even if Article 2(6)(c)
of the basic Regulation is applied, at least the SG & A
and the profit of the company itself should be used. It
added that the SG & A and profit used for constructing
normal value is taken to a great extent from a company
with a different structure, arguably comparable with a
it must be noted the
department
applicant company's sales consist of products which do
not even belong to the same general category of products
and are also fairly small in volume. Therefore, it is not
reasonable to use SG & A and profit established on such
inappropriate data.

store. However,

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of

the

reflect

it
the

principles

shown that

(36) A number of sampled companies had included different
items in their SG & A, which should have been reported
in the cost of manufacturing. Therefore, these items were
reallocated to the cost of manufacturing. Furthermore,
pursuant to Article 2(5) of the basic Regulation, costs
shall normally be calculated on the basis of records
kept by the party under investigation, provided that
such records are in accordance with the generally
country
accepted
accounting
is
records
concerned and that
reasonably
the
costs
production and sale of the product under consideration.
Moreover, consideration shall also be given to evidence
submitted on the proper allocation of costs, provided
such allocations have been
shown that
that
historically utilised. For
the
five sampled companies,
cost allocation in the replies submitted to the ques-
tionnaire had been done ad hoc, for the purpose of the
investigation and could not be considered as reasonable
since they were not in line with the audited accounts of
the companies. Adjustments were therefore made to
determine the cost of manufacturing in a way more
consistent with the audited accounts of the companies
in question.

associated with

the

is

it

(37)

(38)

(39)

the

total

For these five companies, the various cost items included
in the cost of manufacturing were identified. The
percentage represented by the product concerned out
of
determined.
Depending on the information available and verifiable,
this percentage was applied either to the value of each
of the cost items or to the total costs as reported in the
audited accounts for the purpose of establishing the
manufacturing costs of the product concerned.

turnover was

company

i.e. yarns. The fact

For one company, the adjustment referred to in recital 37
was made to take account of the fact that there was a
very significant difference between the cost structure of
bedlinen and that of the other major product sold by the
company,
this company had
reported in the questionnaire, in a way which could be
verified, data permitting a clearer attribution of costs
between these two categories of products made it
possible to refine the allocation based on turnover, so
as to permit a more appropriate attribution of
the
production costs.

that

challenged the

The Community industry
approach
adopted in respect of this company, claiming that the
company does not have a historically used cost allocation
system. However, this claim was rejected, since the attri-
bution of costs mentioned in recital 38 was not based on
the cost allocation provided by the company, but on
verified
the
information
accounting
company on a regular basis.

prepared

by

(40)

For one company, a further adjustment has been made.
This company has production on two different sites, but

(41)

(42)

(43)

(44)

the sites.
bedlinen was manufactured at only one of
Therefore,
it was considered that the most appropriate
approach was to rely on data related to the site where
bedlinen is manufactured.

Several other companies claimed additional adjustments
to the cost allocation made by the Community insti-
the method of allocating costs on
tutions. However,
the basis of turnover does not allow the application of
a specific, different methodology exclusively limited to a
few cost items, unless it can be shown that such different
specific methodology can exclusively be applied to those
the case and, as
few cost
indicated in recital 32,
the information and evidence
provided by these companies concerning their cost of
production was not
the above
referred claims were rejected.

items. Since this was not

considered reliable,

For another company, the cost of manufacturing was
obtained by deducting from the turnover the profit and
the SG & A expenses, as established during the verifi-
cation visit.

For the two remaining companies, the cost of manufac-
turing was found to be generally reliable, but some
corrections had to be made on the basis of information
collected during the verification visit.

Some of the exporting producers in the sample claimed
that the cost of raw material (mainly grey cloth) they had
reported in the cost of manufacturing already included
certain SG & A costs. Since the companies were not fully
integrated companies, as some of the processing steps
these SG & A
they claimed that
were outsourced,
expenses should be deducted from the cost of production
in order to avoid a double counting of the SG & A
expenses. However, it should be noted that the normal
value had to be constructed by using the SG & A and
profit of the sole company with representative domestic
sales and those of the two companies with domestic sales
representing 2,2 and 0,2 % respectively and that these
three exporters were purchasing the vast majority of
the grey cloth themselves. It should also be noted that
every purchase of raw material includes some SG & A
costs in the price paid, but these are costs of the supplier,
and not the SG & A of the exporter in question. The
claim was therefore rejected.

2. Export price

(45)

Seven of the sampled exporting producers made all their
export sales to the Community directly to independent
customers. In accordance with Article 2(8) of the basic
Regulation, their export prices were therefore established
on the basis of the prices actually paid or payable by
these independent customers in the Community.

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(46)

The eighth sampled exporting producer had a related
importer
these
in the Community. The prices
exports were constructed on the basis of the prices at
which the imported products were first resold to an
the
independent buyer, as set out
basic Regulation.

in Article 2(9) of

for

(47) However, as requested by a number of companies, export
sales of outdated stocks and sales delivered by air freight
(on a cif or cf basis) were excluded from the dumping
calculations, as these sales were not made in the ordinary
trade. These sales represented a negligible
course of
portion (less than 2 %) of all export sales reported.

the related trader received a significant mark-up for its
activities in relation to sales of the product concerned to
the Community, not dissimilar from a commission.

(51)

Several exporters claimed further adjustments for bank
charges and credit costs. They claimed that
the end-
users on the domestic market commonly used credit
cards as payment form. However, for those companies
with domestic sales the investigation showed that the
sales to end-users are on cash basis. This claim was
therefore rejected.

(48)

(49)

This approach regarding sales delivered by air freight and
outdated stocks has been challenged by the Community
industry, claiming that whether or not a sale is in the
ordinary course of trade cannot be established by the
means of conveyance of the goods and that these sales
they are a relatively
should be taken into account if
common occurrence in the sector
in question. This
claim was rejected because, although most companies
had sales delivered by air freight and sales of outdated
common
are not
stocks,
occurrence in the sector as the volumes delivered by
air
freight and the volumes of outdated stocks are
extremely limited as described in recital 47.

relatively

those

sales

a

3. Comparison

For the purpose of ensuring a fair comparison between
normal values and export prices, due allowance in the
form of adjustments was made for differences affecting
price and price comparability in accordance with Article
2(10) of the basic Regulation. Appropriate adjustments
concerning import charges and indirect taxes, discounts
and rebates, transport, insurance, handling, loading and
ancillary costs, credit, commissions,
interest rates and
currency conversions were granted when reasonable,
verified evidence. An
accurate
adjustment for level of trade was also made in order to
reflect the fact that the domestic sales were made directly
to final customers, whereas the exports were made to
traders, retailers and distributors.

and supported by

(50) One exporter contested an adjustment for commissions,
arguing that the related trader which had been found to
have functions similar to those of an agent working on a
commission basis was, in reality, a mere extension of its
own export department and did not carry out business of
its own. The adjustment was confirmed and the claim
rejected, since it was found that the related trader was
indeed carrying out
the
obtaining and managing of a part of the quota regime)
that could not be carried out by the exporter itself and
was incurring substantial expenses in doing so. Moreover,

its own sales activities (e.g.

(52) One company claimed adjustment for an increase in the
cotton prices during the IP. However, the increase in
cotton prices was due to an increase in world market
prices and therefore was not an isolated Pakistani
phenomenon. The increase in cotton prices affected at
three months of the IP, while the sales of the
most
product concerned took place throughout the full
IP.
Furthermore,
the increase in prices was only of a
temporary character in the sense that the world market
prices are volatile, which is a normal phenomenon for
this type of raw material. Such changes in raw material
the
prices must be considered as a normal part of
business
information
supplied by the company (cotton purchase prices from
1997 to 2005 in PKR) showed a downward trend, with
1997 having seen the highest prices.
there are
important fluctuations of an input, this could normally
addressed by making a monthly or quarterly
be
comparison of normal
export prices.
value
However, that was not requested here. This claim was
therefore rejected.

In addition,

operations.

and

the

If

physically

to Article 2(10)(b) of

(53) All companies claimed adjustments for duty drawback,
the basic Regulation.
pursuant
for
such adjustments were accepted in the
Claims
investigation insofar as the amounts claimed
original
were actually borne by the like product and by the
materials
therein, when
intended for consumption in the exporting country,
and refunded in respect of the product exported to the
in the present investi-
Community. It was found that,
Pakistani
gation,
imports
government exceeded by far the amounts of
charges
the
by
companies on materials incorporated in the product
concerned.

incorporated

refunded

amounts

actually

indirect

taxes

paid

the

the

by

or

(54)

The sampled exporters argued that the Government of
Pakistan had introduced a new system for the calculation
of these refunds of import duties paid by the exporting
producers. This new system uses certain standards for the
determination of the amount refundable.

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(55)

The new regime was investigated in order to clarify if a
direct
link between the duty paid by the exporting
producers and the material physically incorporated in
the like product
intended for consumption in the
exporting country could be established. Where the
sampled exporters could show that import duties had
been reimbursed, the Community institutions accepted
to normal value, where
the claim for an adjustment
appropriate,
claimed were
amounts
the
actually borne by the like product and by materials
physically incorporated therein, when intended for
consumption in the exporting country, and refunded in
respect of the product exported to the Community.

insofar

as

4. Dumping margins

(56)

For the sampled exporting producers, individual dumping
margins were established on the basis of a comparison of
a weighted average normal value with a weighted average
export price,
in accordance with Article 2(11) of the
basic Regulation.

(57)

The dumping margins, expressed as a percentage of the
net free-at-Community-frontier price, before duty, are:

(61)

Yunus Textile Mills, Karachi

Lucky Textile Mills, Karachi

Nishat Mills Limited, Faisalabad

Chenab Limited, Faisalabad

Gul Ahmed Textile Mills Ltd, Karachi

Al-Abid Silk Mills Ltd, Karachi

Mohammad Farooq Textile Mills Ltd, Karachi

Fairdeal Textiles (Pvt) Ltd, Karachi

8,5 %

7,2 %

6,1 %

5,7 %

5,6 %

3,9 %

3,5 %

1,3 %

In accordance with Article 9(3) of the basic Regulation, it
the dumping margin for Fairdeal
is concluded that
Textiles
its margin of
dumping is below 2 %.

(Pvt) Ltd is de minimis, as

the cooperating companies not

selected in the
For
sample,
the dumping margin was established on the
basis of the weighted average dumping margin of the
companies selected in the sample, pursuant to Article
9(6) of
the basic Regulation. This weighted average
dumping margin, expressed as a percentage of the net
free-at-Community-frontier price, before duty, was 5,8 %.

(58)

(59)

(60)

Several cooperating exporters not selected in the sample
claimed that it was discriminatory not to receive the
lowest duty instead of the weighted average duty of the

sampled companies. It is noted that in this case, eight
exporters were selected in the sample in accordance with
the provisions of Article 17 of the basic Regulation. The
findings made as based on data supplied by these
the
exporters are deemed to be representative for
bedlinen industry in Pakistan. In relation to the duty to
be applied to the non-sampled exporters,
it would be
sampling to apply the
contrary to the purpose of
lowest duty
sampled
the
established for one of
exporters rather than the weighted average duty which
is clearly more representative of the industry as a whole.
In any event, Article 9(6) of the basic Regulation requires
that the anti-dumping duty applicable to imports from
exporters who have made themselves known, but are not
included in the sample, shall not exceed the weighted
average margin of dumping established for the parties
in the sample and it is the consistent practice of the
Community institutions to apply the weighted average
margin. In light of the above, this claim was rejected.

In order to determine the residual dumping margin, the
level of cooperation was first established. A comparison
between Eurostat data concerning imports originating in
Pakistan and sampling replies showed that the level of
cooperation was high (more than 80 %). Therefore, and
the remaining
since there were no indications
that
companies were dumping at a lower
it was
level,
considered appropriate to set the dumping margin for
the remaining companies, which had not cooperated in
the investigation, at the level of the highest dumping
included in the
margin found for
sample. This
in accordance with the
standing practice of
the Community institutions and
was also considered necessary in order not to provide
an incentive to non-cooperation. Therefore, the residual
dumping margin was calculated at the rate of 8,5 %.

approach is

companies

the

respective

(62) A number of companies which had been considered as
non-cooperating claimed that they had indeed sent the
sampling return within the time limits either through
the
their
Commission. These
to
provide evidence that the replies indeed had been trans-
mitted within the requested deadlines. None of
these
companies could submit sufficient evidence to support
such claims which were therefore rejected.

companies were

association

requested

directly

or

to

5. Lasting nature of the changed circumstances

(63)

In the present investigation, the aim of the review was to
base the conclusion on the findings of verified data,
which had, in principle, become possible following the
change in circumstances regarding the security situation.
There are no indications that the new verified findings
would not be of a lasting nature.

6.5.2006

EN

Official Journal of the European Union

L 121/21

(64) However, it should be noted that due to some remaining
security concerns,
the verifications took place in the
UAE. Despite the efforts made by the cooperating
exporting producers, a verification in a third country
does not comply with the normal practice as
the
Commission investigators did not have unlimited direct
access to the accounting registers and the accounting
systems of the exporters. Therefore, albeit the findings
are sufficiently reliable to justify a modification in the
level of the anti-dumping duties, on its own initiative
or at the request of interested parties the Community
institutions might carry out a review of the modified
antidumping
information
should
sources point out to a change or otherwise inaccuracy
of the findings verified in the third country.

available

duties

6. Conclusion

(65)

In view of the above, the present antidumping measures
the product concerned originating in
on imports of
Pakistan should be
the new
dumping margins found.

amended to reflect

(66) According to Article 9(4) of the basic Regulation, the
duties should not exceed the margin of dumping estab-
lished but should be less than the margin if such lesser
duty would be adequate to remove the injury of the
the present
Community industry. Given the fact
interim review is limited to the examination of
the
the level of duties imposed should
dumping aspects,
not be higher
found in the
original investigation.

than the injury levels

that

(67) As mentioned in recital 134 of the definitive Regulation,
the original dumping margin was lower than the injury
elimination level definitely determined and therefore the
definitive anti-dumping duty was based on the lower
dumping margin, namely 13,1 %. Since the dumping
interim review are still
margins found in the present
the amended anti-
lower
than the
dumping duties
lower
dumping margins.

injury margin,
should be based on these

(68)

Therefore, the level of duties should be set at that of the
dumping margins found, except for one company, for
which a de minimis dumping margin has been found as
outlined in recital 58:

(a) For the exporters in the sample:

Yunus Textile Mills, Karachi

Lucky Textile Mills, Karachi

Nishat Mills Limited, Faisalabad

Chenab Limited, Faisalabad

8,5 %

7,2 %

6,1 %

5,7 %

Gul Ahmed Textile Mills Ltd, Karachi

Al-Abid Silk Mills Ltd, Karachi

Mohammad Farooq Textile Mills Ltd, Karachi

Fairdeal Textiles (Pvt) Ltd, Karachi

5,6 %

3,9 %

3,5 %

0 %

(b) For the cooperating exporters not

included in the

5,8 %

sample

(c) For all other companies

8,5 %

(69) All parties concerned were informed of the essential facts
on the basis of which it was intended to recommend the
amendment of the existing measures and were given an
opportunity to comment. Comments were received and
taken into consideration where appropriate. All parties
concerned were also granted a period to make represen-
tations subsequent to disclosure.

(70)

In order to ensure equal treatment between any new
exporters and the cooperating companies not included
in the sample, mentioned in the Annex to this Regu-
lation,
it is considered that provision should be made
for the weighted average duty imposed on the latter
companies to be applied to any new exporters which
would otherwise be entitled to a review pursuant
to
Article 11(4) of the basic Regulation.

(71) One Pakistani exporting producer submitted an offer for
a price undertaking. However, bedlinen is characterised
by hundreds of different product types, with some char-
acteristics not easily discernible upon importation. This
makes it virtually impossible to establish meaningful
minimum import price for each product
type, which
could be properly monitored by the Commission and
controlled by the customs authorities of the Member
it was considered
States. Under
that a price undertaking was impracticable and could
not be accepted.

these circumstances,

D. DURATION OF THE MEASURES

(72)

The review carried out does not affect the date on which
the definitive Regulation will expire pursuant to Article
11(2) of the basic Regulation,

HAS ADOPTED THIS REGULATION:

Regulation (EC) No 397/2004 is hereby amended as follows:

Article 1

1. Article 1(2) shall be replaced by the following:

L 121/22

EN

Official Journal of the European Union

6.5.2006

‘2.
The rate of the definitive antidumping duty applicable
to the net, free-at-Community-frontier price, before duty, of
products manufactured by the following companies shall be:

2. the text of the Annex to this Regulation shall replace the

Annex to Regulation (EC) No 397/2004;

Manufacturer

Yunus Textile Mills
H-23/1, Landhi Industrial Area,
Karachi

Lucky Textile Mills
L-8, Block 21, F. B Area,
Karachi

Nishat Mills Limited
Nishatabad,
Faisalabad

Chenab Limited
Nishatabad,
Faisalabad

Gul Ahmed Textile Mills Ltd
Plot No HT/3A, Landhi Industrial Area,
Landhi,
Karachi

Al-Abid Silk Mills Ltd
A-39, S.I.T.E., Manghopir Road,
Karachi

Mohammad Farooq Textile Mills Ltd
1st floor, Finlay House, I.I Chundrigar Road,
Karachi

Fairdeal Textiles (Pvt) Ltd
A/15-D, Binoria Chowk, S.I.T.E.,
Karachi

Manufacturers listed in the Annex

All other companies

Rate of
duty
%

TARIC
additional
code

8,5

A698

7,2

A699

6,1

A700

5,7

A701

5,6

A702

3,9

A704

3,5

A703

0

5,8

8,5

A705

A706

A999’

3. the following paragraph shall be added to Article 1:

‘4. Where any new exporting producer provides sufficient
evidence to the Commission that:

— it did not export

to the Community the product
described in paragraph 1 in the period between 1 April
2003 and 31 March 2004,

— it is not related to any of the exporters or producers
subject to the measures imposed by this Regulation and

— it has actually exported to the Community the product
concerned after the investigation period on which the
measures are based, or it has entered into an irrevocable
contractual obligation to export a significant quantity to
the Community,

by

the Council, acting by simple majority on a proposal
submitted
the
the Commission after
Advisory Committee, may amend paragraph 2 by adding
the new exporting producer to the companies subject to
the weighted average duty rate of 5,8 %.’

consulting

Article 2

This Regulation shall enter into force on the day following 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, 5 May 2006.

For the Council
The President

K.-H. GRASSER

6.5.2006

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Official Journal of the European Union

L 121/23

ANNEX

‘ANNEX

List of the cooperating manufacturers referred to in Article 1(2) under TARIC additional code A706:

Name

Address

A.B. Exports (PVT) Ltd

A.S.T. (PVT) Limited

Abdur Rahman Corporation (Pvt) Ltd

Adil Waheed Garments

Afroze Textile Industries (Pvt) Ltd

Al Musawar Textile (PVT) Ltd

Al-Karam Textile Mills (PVT) Ltd

Al-Latif

Al-Noor Processing & Textile Mills

Al-Raheem Textile

Ameer Enterprises

Amsons Textile Mills (PVT) Ltd

Amtex (Private) Limited

Anjum Textile Mills (PVT) Ltd

Apex Corporation

Arshad Corporation

Arzoo Textile Mills Ltd

Asia Textile Mills

Aziz Sons

B.I.L. Exporters

Off. No 6, Ground Floor,
Business Center, New Civil Lines,
Faisalabad

Saba Square 2-C, Saba Commercial Street No 3,
Phase V Extension, D.H. Authority,
Karachi

P-214 Muslim Town #1,
Sarghoda Road,
Faisalabad

66-Zubair Colony, Jaranwala Road,
Faisalabad

LA 7/1-7, Block 22 F.B. Area,
Karachi

Atlas Street, Maqbool Road,
Faisalabad

3rd floor, K.D.L.B. Building,
58-West Wharf Road,
Karachi

W,S, 24, Block-2, Azizabad, F.B. Area,
Karachi-75950

Sargodha Road,
Near Bava Chak,
Faisalabad

F/40, Block-6, P.E.C.H.S.,
Karachi

3rd floor, Bismillah Centre, Street No 2,
Karkhana Bazar, Yanr Market,
Faisalabad

D-14/B, S.I.T.E.,
Karachi

1-Km, Khurrianwala-Jaranwala Road,
Faisalabad

Anjum Street, Nalka Kohala, Sarghoda Road,
Faisalabad

1-19, Arkay Square,
PO Box 13373,
Karachi

1088/2, Jail Road
Faisalabad 38000

2.6 km, Jaranwala Road, Khurrinwala,
Faisalabad

D-156, S.I.T.E. Avenue,
Karachi

D21/Karach, S.I.T.E.,
Karachi-75700

15/5, Sector 12/C, North Karachi Industrial Area,
Karachi

L 121/24

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Official Journal of the European Union

6.5.2006

Name

Address

Baak Industries

Be Be Jan Pakistan Limited

Bela Textiles Ltd

Bismillah Fabrics (PVT) Ltd

Bismillah Textiles (PVT) Ltd

Classic Enterprises

Cotton Arts (PVT) Ltd

D.L. Nash (Private) Ltd

Dawood Exports PVT Ltd

Decent Textiles

En Em Fabrics (Pvt) Ltd

En Em Industries Ltd

Enn Eff Exports

Faisal Industries

Fashion Knit Industries

Fateh Textile Mills Limited

Gerpak Textile (PVT) Ltd

Gohar Textile mills

H.A. Industries (PVT) Ltd

Haroon Fabrics (Private) Limited

Hay's (PVT) Limited

Homecare Textiles

Husein Industries Ltd

Ideal International

Jaquard Weavers

P-107, Akbarabad, Near Allied Hospital,
Faisalabad

Square No 7, Chak No 204/R.B.,
Faisalabad

A-29/A, S.I.T.E.,
Karachi

3 Km, Jhumbra Road, Khurrianwala,
Faisalabad

1. KM, Jaranwala Road, Khurrianwala,
Faisalabad

B-1/1, Sector 15, Korangi Industrial Area,
Karachi

613/1, Dagrawaan Road,
Faisalabad

11, Timber Pond, Keamari Road,
Karachi-75620

PO Box 532, Sarghoda Road,
Faisalabad

P-1271, Abdullahpur, West Canal Road,
Faisalabad

10th Km, Sarghoda Road,
Faisalabad

10th Km, Sargodha Road,
Faisalabad

4th floor, Business Centre, New Civil Lines,
Faisalabad

Office 205, Madina City Mall,
Abdullah Haroon Road, Saddar,
Karachi

5-Business Centre, Ground Floor,
Mumtaz Hassan Road,
Karachi

PO Box No 69, Hali Road, S.I.T.E.,
Hyderabad

317 Clifton Centre, Schon Circle,
Kehkashan Clifton,
Karachi

208 Chak Road, Zia Town,
Faisalabad

10 KM, Jaranwala Road,
Faisalabad

P-121, Rafique Colony, Jail Road,
Faisalabad

A-33, (C), Textile Avenue, S.I.T.E.,
Karachi-75700

D-115, S.I.T.E.,
Karachi

HT-8 Landhi Industrial & Trading Estate,
Landhi,
Karachi

A-63/A, SIND Industrial Trading Estate,
Karachi-75700

811 Mahmoodabad Colony,
Multan

6.5.2006

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Official Journal of the European Union

L 121/25

Name

Address

Kam International

Kamal Spinning Mills

Kausar Processing Industries (PVT) Ltd

Kausar Textile Industries (PVT) Ltd

Khizra Textiles International

Kohinoor Textile Mills Limited

Latif International (PVT) Ltd

Liberty Mills Limited

M/s M.K. SONS Pvt Limited

M/S Al-Ghani International

M/S Home Furnishings Limited

MSC Textiles (PVT) Ltd

Mughanum (PVT) Ltd

Mustaqim Dyeing & Printing Industries (Pvt) Ltd

Naseem Fabrics

Nawaz Associates

Nazir Industries

Niagara Mills (PVT) Ltd

Nina Industries Limited

Nishitex Enterprises

Parsons Industries (PVT) Ltd

Popular Fabrics (PVT) Limited

Rainbow Industries

F-152, S.I.T.E.,
Karachi

4th KM, Jranwala Road, Khurrianwala,
Faisalabad

P-61 Gole Chiniot Bazar,
Faisalabad

Maqbool Road,
Faisalabad

P-68, First Floor, Tawakal Cloth Market,
Gol Chiniot Bazar,
Faisalabad-38000

Peshawar Road,
Rawalpindi

Street No 1, Abdullahpur,
Faisalabad

A/51-A, S.I.T.E.,
Karachi

2 KM, Khurrianwala, Jarranwala Road,
Faisalabad

202 Bhaiwala, Ghona Road,
Faisalabad

Plot No 1,2,10,11, Sector IX-B.,
Karachi Export Processing Zone,
Karachi

P-19, 1st floor, Montgomery Bazar,
Faisalabad

P-162, Circular Road,
Faisalabad

D-14/A, Bada Board, S.I.T.E.,
Karachi

Suite #404, 4th floor, Faisalcomplex,
Bilal Road, Civil Lines,
Faisalabad

87 D/1 Main Boulevard Gulberg III,
Lahore

Suite 3, 7th floor, Textile Plaza,
M.A. Jinnah Road,
Karachi-74000

Kashmir Road, Nishatabad,
Faisalabad

A-29/A, S.I.T.E.,
Karachi

P-224, Tikka Gali No 2, Y.Y. Plaza.,
1st floor, Montgomery Bazar,
Faisalabad

E-53 S.I.T.E.,
Karachi

Plot 115, Landhi Industrial Area,
Karachi

810/A, Khanewal Road,
Multan

L 121/26

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Official Journal of the European Union

6.5.2006

Name

Address

Rehman International

Sadaqat Textile Mills Pvt Ltd

Sadiq Siddique Co.

Sakina Exports International

Samira Fabrics (PVT) Ltd

Sapphire Textile Mills Limited

Shahzad Siddique (PVT) Ltd

Shalimar Cotton Export (PVT) Ltd

Sharif Textiles Industries (PVT) Ltd

Shercotex

Sitara Textile Industries Limited

South Asian Textile Inds.

Sweety Textiles Pvt Ltd

Tex-Arts

The Crescent Textile Mills Ltd

Towellers Limited

Union Exports (PVT) Limited

United Finishing Mills Ltd

United Textile Printing Industries (Pvt) Ltd

Wintex Exports PVT Ltd

Zafar Fabrics (PVT) Limited

P-2, Al Rehman House,
Ghulam Rasool Nagar Main Road,
Sarfraz Colony,
Faisalabad

Sadaqat Street, Sarghoda Road,
Faisalabad

170-A, Latif Cloth Market, M.A. Jinnah Road,
Karachi

#313, Dada Chambers, M.A. Jinnan Road,
Karachi-74000

401-403, Chapal Plaza, Hasrat Mohani Road,
Karach

313, 3rd floor, Cotton exchange Bldg. I.I.,
Chundrigar Road,
Karachi

4,5 KM, Khurrainwala Jaranwala Road,
Faisalabad

Yousaf Chowk, Sarghoda Road,
Faisalabad

PO Box 265, Satiana Road,
Faisalabad

39/c, Peoples Colony,
Faisalabad

6- K.M., Sargodha Road,
Faisalabad

Street No 3, Hamedabad Colony, Vehari Road,
Multan

P-237, 2nd floor, Hassan Arcade
Montgomery Bazar,
Faisalabad

P-22, 1st floor, Montgomery Bazar,
Faisalabad

Sargodha Road,
Faisalabad

WSA 30-31, Block 1, Federal B,
Karachi

D-204/A, S.I.T.E.,
Karachi-75700

2nd floor, Regency Arcade, The Mall,
Faisalabad

PO Box 194, Maqbool Road,
Faisalabad

P-17/A, Main Road, Sarfaraz Colony,
Faisalabad

Chak No 119, J.B. (Samana), Sarghoda Road,
Faisalabad

Zamzam Weaving and Processing Mills

Bazar 1, Razabad,
Faisalabad’