Proposal for a Council Regulation amending Regulation (EC) No 1676/2001 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of polyethylene terephthalate film originating in India and the Republic of Korea
Date: 2006-08-30
Institutions: European Commission
Subjects: India, South Korea, anti-dumping duty, anti-dumping legislation, import, originating product, plastics

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.08.2006 
COM(2006) 471 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1676/2001 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of polyethylene 
terephthalate film originating in India and the Republic of Korea 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

110 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/19961  on 
protection  against  dumped  imports  from  countries  not  members  of  the  European 
Community  as  last  amended  by  Council  Regulation  (EC)  No  2117/20052  (‘the  basic 
Regulation’)  in  the  proceeding  concerning  imports  of  polyethylene  terephthalate  film 
originating in India and the Republic of Korea. 

120 

•  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. 

139 

•  Existing provisions in the area of the proposal 

Council Regulation (EC) No 1676/20013, imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports into the Community of 
polyethylene terephthalate film originating in India and the Republic of Korea. 

Council Regulation (EC) No 2597/19994 imposing a definitive countervailing duty on 
imports  of  polyethylene  terephthalate  (PET)  film  originating  in  India  and  collecting 
definitively the provisional, duty imposed. 

141 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

219 

The applicant and the Community industry have been informed of the findings of the 
examination and have had the opportunity to submit their comments. 

•  Collection and use of expertise 

229 

There was no need for external expertise. 

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2 
3 

4 

OJ L 56, 6.3.1996, p. 1. 
OJ L 340, 23.11.2005, p. 17. 
OJ  L  227,  23.8.2001,  p.  1.  Regulation  as  last  amended  by  Council  Regulation  (EC)  No  366/2006 
(OJ L 68, 8.3.2006, p. 6). 
OJ  L  316,  10.12.1999,  p.  1.  Regulation  as  last  amended  by  Council  Regulation  (EC)  No  367/2006 
(OJ L 68, 8.3.2006, p. 15). 

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230 

•  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 

Article  1  of  Council  Regulation  (EC)  No  1676/2001  imposing  a  definitive  anti-
dumping duty on imports into the Community of polyethylene terephthalate (PET) film 
originating, inter alia, in India as amended by Council Regulation (EC) No 366/2006, 
gives  the  possibility  to  Indian  exporting  producers  which  meets  certain  criteria  to  be 
granted new exporting producer treatment. 

The Indian exporting producer SRF Limited has submitted sufficient evidence to show 
that  it  complies  with  the  above  mentioned  criteria  and  can  be  granted  the  new 
exporting producer treatment. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation, 
which should be published in the Official Journal of the European Union. 

310 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  on  protection  against  dumped  imports  from 
countries  not  members  of  the  European  Community  as  latest  amended  by  Council 
Regulation (EC) No 2117/2005. 

329 

•  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). 

331 

332 

Council Regulation (EC) No 1676/2001 imposing a definitive anti-dumping duty and 
collecting  definitively  the  provisional  duty  imposed  on  imports  of  polyethylene 
terephthalate  film  originating  in  India  and  the  Republic  of  Koreaas  amended  by 
Council Regulation (EC) No 366/2006, 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 

341 

Proposed instruments: regulation. 

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342 

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

The above-mentioned regulation does not foresee alternative options. 

4)  BUDGETARY IMPLICATION 

409 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1676/2001 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of polyethylene 
terephthalate film originating in India and the Republic of Korea 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to 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 
Regulation’)5, 

Having  regard  to  Council  Regulation  (EC)  No  1676/2001  of  13  August  20016  imposing  a 
definitive  anti-dumping  duty  and  collecting  definitively  the  provisional  duty  imposed  on 
imports of polyethylene terephthalate film originating in India and the Republic of Korea, and 
in particular Article 1(3) thereof, 

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

Whereas: 

A. PREVIOUS PROCEDURE 

(1) 

The  Council,  by  Regulation  (EC)  No  1676/2001,  imposed  a  definitive  anti-dumping 
duty  on  imports  into  the  Community  of  polyethylene  terephthalate  film  (PET  film) 
originating, inter alia, in India. Given the large number of exporting producers of PET 
film in India, during the investigation which led to the adoption of that Regulation (the 
‘original  investigation’)  a  sample  of  exporting  producers  was  selected  in  accordance 
with Article 17 of the basic Regulation. Individual dumping margins ranging from 0% 
to  65,3%  were  calculated  for  companies  individually  investigated  and  a  dumping 
margin  of  57,7%  was  also  calculated,  in  accordance  with  Article  9(6)  of  the  basic 
Regulation,  for  cooperating  companies  not  part  of  the  sample.  Anti-dumping  duties 
were  subsequently  imposed  ranging  from  0%  to  62,6%,  taking  also  into  account  the 
countervailing  duties  resulting  from  export  subsidies  imposed  on  the  same  products 

5 

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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). 
OJ  L  227,  23.8.2001,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  366/2006,  (OJ  L  68, 
8.3.2006, p. 6). 

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originating  from  India,  which  were  then  applicable  by  virtue  of  Council  Regulation 
(EC) No 2597/1999 of 6 December 19997. 

The  Council,  by  Regulation  (EC)  No  366/2006  of  27  February  2006  (the  ‘amending 
Regulation'),  amended  the  level  of  dumping  margins  calculated  by  Regulation  (EC) 
No  1676/2001.  The  new  dumping  margins  range  between  3,2%  and  29,3%  and  the 
new anti-dumping duty range between 0% and 18%, again in order to take account of 
the  countervailing  duties  resulting  from  export  subsidies  imposed  on  the  same 
products originating from India, as modified according to Council Regulation (EC) No 
367/2006 of 27 February 20068, which has been adopted following an expiry review of 
Regulation (EC) No 2597/1999. 

Furthermore, Regulation (EC) No 367/2006 sets the countervailing duty applicable to 
companies other than those individually listed in its Article 1(2) at 19,1%, the export 
subsidy margin for those companies being calculated at the level of 12%. 

Article 1(3) of Regulation (EC) No 1676/2001, as amended by Regulation 366/2006, 
establishes  three  criteria,  as  detailed  in  recital  (7)  below,  which,  when  met,  give  the 
possibility  to  Indian  exporting  producers  which  were  not  subject  to  anti-dumping 
measures  following  the  original  investigation  to  be  granted  new  exporting  producer 
treatment.  Applicants,  which  are  granted  this  treatment,  are  attributed  the  same  duty 
rate as the companies which had cooperated in the original investigation but were not 
included in the sample. They are therefore subject to a duty which corresponds to the 
weighted  average  margin  of  dumping  established  for  the  companies  included  in  the 
sample  during  the  original  investigation,  being  understood  that  any  zero  and  de 
minimis margin are disregarded, pursuant to Article 9(6) of the basic Regulation. 

During  the  original  investigation,  the  above-mentioned  weighted  average  dumping 
margin  was  calculated  as  the  weighted  average  of  the  dumping  margins  of  three 
sampled  companies,  since  one  of  the  four  originally  sampled  companies  had  a  zero 
margin.  The  weighted  average  margin  of  dumping  so  calculated  in  the  original 
investigation  was,  as  mentioned  in  recital  (1),  57,7%.  The  amending  Regulation 
reduces significantly the margin of dumping of the three abovementioned companies. 
The new weighted average margin of dumping, to be applied to companies fulfilling 
the  requirements  of  Article  1(3)  of  Regulation  (EC)  No  1676/2001,  recalculated 
following the findings of the amending Regulation is therefore 15,5%. 

B. NEW EXPORTING PRODUCER REQUESTS 

The Indian exporting producer SRF Limited (‘the applicant’) has applied to be granted 
the  same  treatment  as  the  companies  co-operating  in  the  original  investigation  not 
included in the sample (‘new exporting producer treatment’). 

An examination has been carried out in order to determine whether the applicant fulfils 
the  criteria  for  being  granted  new  exporting  producer  treatment  as  set  out  in  Article 
1(3) of Regulation (EC) No 1676/2001, namely it was examined: 

OJ L 316, 10.12.1999, p. 1.  
OJ  L  68,  8.3.2006,  p.  15.  Regulation  as  last  amended  by  Council  Regulation  (EC)  No  XXX/2006, 
(OJ L XX, XX.XX.2006, p. XX) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

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–  that it did not export to the Community the goods described in Article 1(1) of that 
to 

investigation  period 

(1  April  1999 

the  original 

Regulation  during 
31 March 2000), 

–  that it is not related to any exporter or producer in India subject to the measures 

imposed by the Regulation 

and 

–  that  it  has  exported  the  goods  concerned  after  the  investigation  period,  or  it  has 
entered into an irrevocable contractual obligation to export a significant quantity 
to the Community. 

(8) 

(9) 

A questionnaire was sent to the applicant who was also asked to provide evidence to 
demonstrate that it meets the three criteria mentioned above. 

The  applicant  replied  to  the  questionnaire  and  provided  evidence  that  is  considered 
sufficient to consider it as a new exporting producer. 

(10)  The  anti-dumping  duty  rate  applicable  to  the  applicant  should  be  based  on  the 
weighted average margin of dumping established for the parties selected in the sample 
in  the  original  investigation,  as  modified  following  the  amending  Regulation,  i.e. 
15,5%, as indicated in recital (5) above. 

(11)  Since, pursuant to Article 14(1) of the basic Regulation, no product shall be subject to 
both anti-dumping and countervailing duties for the purpose of dealing with one and 
the same situation arising from dumping or from export subsidiation, this duty rate is 
to  be  reduced  by  the  applicant’s  export  subsidy  margin  as  ascertained  in  the  anti-
subsidy investigation which led to the adoption of Regulation (EC) No 367/2006 (see 
recital  (59)  of  Regulation  (EC)  No  366/2006).  Since  the  applicant  does  not  have  an 
individual countervailing duty, the duty rate established for all other companies should 
apply. 

(12)  The anti-dumping duty rate applicable to the applicant should therefore be calculated 

as indicated in the table below. 

Company  

Export 
subsidy 
Margin  

Total 
Subsidy 
Margin 

Dumping 
Margin 

CVD Duty  AD Duty 

Total 
duty rate 

SRF Limited 

12,0 % 

19,1 % 

15,5 % 

19,1 % 

3,5 % 

22,6 % 

(13)  The applicant and the Community industry have been informed of the findings of the 

examination and have had the opportunity to submit their comments. 

(14)  The applicant submitted comments on the calculation of the margin of dumping. These 

comments have been taken into account and are reflected in the above. 

(15)  All  other  arguments  and  submissions  made  by  the  parties  were  analysed  and  duly 

taken into account where warranted. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Article 1(2) of Regulation (EC) No 1676/2001 shall be replaced by the following: 

‘2.  The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  net,  free-at-Community-
frontier price, before duty, shall be as follows for products originating in: 

Country 

Company 

Definitive 
Duty (%) 

TARIC Additional 
Code 

India 

India  

India 

India  

India 

India  

India  

Ester Industries Limited 
75-76, Amrit Nagar 
Behind South Extension Part-1 
New Delhi 110 003 
India 
Flex Industries Limited 
A-1, Sector 60 
Noida 201 301, (U.P.) 
India 
Garware Polyester Limited 
Garware House 
50-A, Swami Nityanand Marg 
Vile Parle (East) 
Mumbai 400 057 
India 
Jindal Poly Films Limited 
56 Hanuman Road 
New Delhi 110 001 
India 
MTZ Polyfilms Limited 
New India Centre, 5th floor 
17 Co-operage Road 
Mumbai 400 039 
India 
Polyplex Corporation Limited 
B-37, Sector-1 
Noida 201 301 
Dist. Gautam Budh Nagar 
Uttar Pradesh 
India 
SRF Limited 
Express Building 9-10 
Bahadur Shah Zaraf Marg 
New Delhi 110 002 
India 

17,3 

A026 

0 

A027 

6,8 

A028 

0 

A030 

18,0 

A031 

0 

A032 

3,5 

A753 

India 

All other companies 

17,3 

A999 

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Country 

Company 

Definitive 
Duty (%) 

TARIC Additional 
Code 

Korea 

Korea 

Korea 

Korea 

Korea 

Korea 

Kolon Industries Inc. 
Kolon Tower 
1-23, Byulyang-dong 
Kwacheon-city 
Kyunggi-do 
Korea 
SKC Co. Ltd. 
Kyobo Gangnam Tower 
1303-22, Seocho 4 
Dong, Seocho Gu 
Seoul 137-074 
Korea 
Toray Saehan Inc. 
17F, LG Mapo B/D 
275 Kongdug-Dong 
Mapo-Gu 
Seoul 121-721 
Korea 
HS Industries Co. Ltd. 
Kangnam Building, 5th floor 
1321, Seocho-Dong 
Seocho-Ku 
Seoul 
Korea 
Hyosung Corporation 
450, Kongduk-Dong 
Mapo-Ku 
Seoul 
Korea 
KP Chemical Corporation 
No. 89-4, Kyungun Dong 
Chongro-Ku 
Seoul 
Korea 

0 

A244 

7,5 

A224 

0 

A222 

7,5 

A226 

7,5 

A225 

7,5 

A223 

Korea 

All other companies  

13,4 

A999' 

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

Article 2 

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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