Proposal for a Council Regulation amending Council Regulation (EC) No 74/2004 imposing a definitive countervailing duty on imports of cotton-type bedlinen originating in India
Date: 2006-11-15
Institutions: European Commission
Subjects: India, anti-dumping duty, anti-dumping legislation, import, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.11.2006 
COM(2006)683 final 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 74/2004 imposing a definitive countervailing duty 
on imports of cotton-type bedlinen originating in India 

(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  2026/97  of 
6 October 1997 on protection against subsidised imports from countries not members 
of the European Community as last amended by Council Regulation (EC) No 461/2004 
of  8  March  2004  ("the  basic  Regulation")  in  the  proceeding  concerning  imports  of 
cotton-type bedlinen, originating in India.  

•  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. 

•  Existing provisions in the area of the proposal 

Council  Regulation  (EC)  No  74/20041,  amended  by  Council  Regulations  (EC) 
No 2143/20042  and  No 122/20063,  imposing  a  definitive  countervailing  duty  on 
imports into the Community of cotton-type bedlinen, originating in India. 

Proposal  for  granting  new  exporting  producer  treatment  to  new  exporters  to  the 
Community. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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 

There was no need for external expertise. 

•  Impact assessment 

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

The  basic  Regulation  does  not  foresee  a  general  impact  assessment  but  contains  an 

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OJ L 12, 17.1.2004, p. 1. 
OJ L 370, 17.12.2004, p. 1. 
OJ L 22, 26.1.2006, p. 3. 

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exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

By Regulation (EC) No 74/2004 the Council imposed a definitive countervailing duty 
on imports into the Community of cotton-type bedlinen originating in India.  

During the original investigation, given the large number of exporters/producers of the 
product  concerned  in  India,  a  sample  of  exporting  producers  was  chosen.  Individual 
duty rates ranging from 4.4% to 10.4% were imposed on the companies selected in the 
sample, while other co-operating companies not included in the sample were attributed 
a duty rate of 7.6%. A residual duty rate of 10.4% was imposed on companies which 
either did not make themselves known or did not co-operate in the investigation.  

Article  2  of  Council  Regulation  (EC)  No  74/2004  gave  the  possibility  to  Indian 
exporters/producers which met the criteria set out in the same Article not to be treated 
differently  from  the  co-operating  companies  not  included  in  the  sample  (‘newcomer 
status’). 

Council  Regulation  (EC)  No  74/2004  has  been  amended  twice,  namely  by  Council 
Regulation  (EC)  No  2143/2004  and  by  Council  Regulation  (EC)  No  122/2006.  Both 
Regulations  added  the  names  of  companies  exporting  the  product  concerned 
originating  in  India  who  met  the  criteria  set  out  in  Council  Regulation  (EC)  No 
74/2004 to the list of Indian exporting producers in the Annex to the Regulation. 

Six of the 19 Indian exporters/producers who requested the newcomer status provided 
evidence  which  was  considered  sufficient  to  amend  Council  Regulation  (EC)  No 
74/2004 by adding their names to the list of companies subject to the weighted average 
duty margin of 7.6%. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation, 
which should be published in the Official Journal as soon as possible. 

•  Legal basis 

Council  Regulation  (EC)  No  2026/97  of  6  October  1997  on  protection  against 
subsidised  imports  from  countries  not  members  of  the  European  Community  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 reason(s). 

The  form  of  action  is  described  in  the  above-mentioned  Regulations  and  leaves  no 

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scope for national decision. 

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

•  Choice of instruments 

Proposed instruments: regulation. 

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

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

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 74/2004 imposing a definitive countervailing duty 
on imports of cotton-type bedlinen originating in India 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  2026/97  of  6 October  1997  on  protection 
against  subsidised  imports  from  countries  not  members  of  the  European  Community4  (the 
'basic Regulation'),  

Having  regard  to  Article  2  of  Council  Regulation  (EC)  No 74/2004  of  13 January  2004 
imposing  a  definitive  countervailing  duty  on  imports  of  cotton-type  bedlinen  originating  in 
India5, 

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

Whereas: 

A. PREVIOUS PROCEDURE 

By  Council  Regulation  (EC)  No  74/2004,  the  Council  imposed  a  definitive 
countervailing  duty  on  imports  into  the  Community  of  cotton-type  bedlinen  falling 
within  CN  codes  ex  6302  21  00  (TARIC  codes  6302  21  00  81,  6302  21  00  89),  ex 
6302 22 90 (TARIC code 6302 22 90 19), ex 6302 31 00 (TARIC code 6302 31 00 90) 
and ex 6302 32 90 (TARIC code 6302 32 90 19), originating in India. Given the large 
number  of  co-operating  exporting  producers  of  the  product  concerned  in  India,  a 
sample  was  selected  in  accordance  with  Article  27  of  the  basic  Regulation  and 
individual duty rates ranging from 4,4 % to 10,4 % were imposed on the companies 
included in the sample, while other co-operating companies not included in the sample 
were attributed a duty rate of 7,6 %. A residual duty rate of 10,4 % was imposed on all 
other companies.  

Article 2 of Council Regulation (EC) No 74/2004 (the 'original Regulation') stipulates 
that  where  any  new  exporting  producer  in  India  provides  sufficient  evidence  to  the 
Commission that it did not export to the Community the products described in Article 
1(1) during the investigation period (1 October 2001 to 30 September 2002)(the ‘first 

OJ  L  288,  21.10.1997,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No 461/2004  (OJ  L  77, 
13.3.2004, p. 12). 
OJ  L  12,  17.1.2004,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  122/2006  (OJ  L  22, 
26.1.2006, p. 3). 

(1) 

(2) 

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criterion’), that it is not related to any of the exporters or producers in India which are 
subject  to  the  anti-subsidy  measures  imposed  by  that  Regulation  (the  ‘second 
criterion’) and that it has actually exported to the Community the products 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 
(the ‘third criterion’), then Article 1(3) of that Regulation can be amended by granting 
the new exporting producer the duty rate applicable to the co-operating companies not 
included in the sample, i.e. 7,6 %. 

(3) 

The  original  Regulation  has  been  amended  twice  by  amending  Regulations,  namely 
Council Regulation (EC) No 2143/20046, and Council Regulation (EC) No 122/20067. 
Both Regulations have added to the list of Indian exporting producers in the Annex to 
the Regulation the names of companies exporting the product concerned originating in 
India who satisfied the Commission's services that they met the criteria set out in the 
original Regulation. 

B. NEW EXPORTERS/PRODUCERS' REQUESTS 

(4) 

19  Indian  companies  applied  to  be  granted  the  same  status  of  the  companies  co-
operating in the original investigation not included in the sample (‘newcomer status’) 
since the publication of the previous amending Regulation.  

(5) 

The 19 applicants were: 

Applicant Company 

City 

B.K.S Textiles Private Limited 

Coimbatore 

Indian  Arts  &  Crafts  Syndicate 
(IACS) 

New Delhi 

Mittal International 

Esskay International 

Opera Clothing 

Govindji Trikamdas & Co. 

Navnitlal Private Limited 

Tulip Exim 

Aarthi - A1 – Traders 

Panipat 

Mumbai 

Mumbai 

Mumbai 

Mumbai 

Mumbai 

Karur 

Anjani Synthetics Limited 

Ahmedabad 

Home Concepts 

New Delhi 

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OJ L 370, 17.12.2004, p. 1. 
OJ L 22, 26.1.2006, p. 3. 

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Siyaram Silk Mills Limited 

Mumbai 

Ramlaks Exports Pvt. Ltd. 

Oracle Exports 

Sellon Dynamics 

Mumbai 

Mumbai 

Mumbai 

Synthesis Home Textiles 

Karur 

Devtara Industries 

Muradnagar 

Summer India Textile Mills 

Salem 

Prathishta Weaving and Knitting 

Coimbatore 

(6) 

(7) 

(8) 

(9) 

Four  companies  requesting  newcomer  status  did  not  reply  to  the  questionnaire 
intended  to  verify  that  they  met  the  conditions  set  out  in  Article  2  of  Council 
Regulation (EC) No 74/2004, and their requests had, therefore, to be rejected. 

One  company  returned  the  questionnaire  twice,  both  times  incomplete  and  with 
contradictory  information.  The  third  questionnaire  sent  to  the  company  was  not 
returned  and  as  such  it  was  unable  to  prove  that  it  complied  with  the  criteria  to  be 
granted new exporting producer status. That company's request was therefore rejected. 

The remaining 14 companies submitted complete replies to the questionnaire and were 
therefore considered for newcomer status. 

The  evidence  provided  by  six  of  the  above-mentioned  Indian  exporters/producers  is 
considered  sufficient  to  grant  them  the  duty  rate  applicable  to  the  co-operating 
companies not included in the sample (i.e. 7.6%) and consequently to add them to the 
list of exporters/producers in the Annex (the ‘Annex’) to Council Regulation (EC) No 
74/2004,  as  amended  by  Council  Regulation  (EC)  No  2143/2004  and  Council 
Regulation (EC) No 122/2006. 

(10)  The  remaining  eight  companies  had  their  applications  for  new  exporting  producer 

status rejected for the following reasons: 

(11)  Seven  companies  failed  to  provide  evidence  that  they  had  exported  the  product 
concerned  after  the  investigation  period  to  the  EC  or  that  they  had  irrevocable 
contractual obligations to export the product concerned in significant quantities to the 
EC. 

(12)  One company is related to one company already listed in the original Regulation and 
its  application  for  newcomer  status  was  therefore  rejected  as  it  failed  the  second 
criterion mentioned in Article 2 of the original Regulation.  

(13)  Companies for which newcomer status was not granted were informed of the reasons 
of this decision and given an opportunity to make their views known in writing. 

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(14)  All  arguments  and  submissions  made  by  interested  parties  were  analysed  and  duly 

taken into account where warranted. 

HAS ADOPTED THIS REGULATION: 

The following companies shall be added to the list of producers from India listed in the Annex 
to Council Regulation (EC) No 74/2004: 

Article 1 

Company 

City 

Indian Arts and Crafts Syndicate 

New Delhi 

M/s. Opera Clothing 

Mumbai 

Anjani Synthetics Limited 

Ahmedabad

Ramlaks Exports Pvt Ltd 

Mumbai 

Oracle  Exports  Home  Textiles  Pvt 
Ltd 

Mumbai 

Summer India Textile Mills (P) Ltd 

Salem 

Article 2 

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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