Council Regulation (EC) No 192/2007 of 22 February 2007 imposing a definitive anti-dumping duty on imports of certain polyethylene terephthalate originating in India, Indonesia, Malaysia, the Republic of Korea, Thailand and Taiwan following an expiry review and a partial interim review pursuant to Article 11(2) and Article 11(3) of Regulation (EC) No 384/96
Date: 2007-02-22
Institutions: Council of the European Union
Subjects: India, Indonesia, Malaysia, South Korea, Taiwan, Thailand, anti-dumping duty, import (EU), originating product, plastics

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 192/2007

of 22 February 2007

imposing a definitive anti-dumping duty on imports of certain polyethylene terephthalate
originating in India, Indonesia, Malaysia, the Republic of Korea, Thailand and Taiwan following
interim review pursuant to Article 11(2) and Article 11(3) of
an expiry review and a partial

Regulation (EC) No 384/96

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 Articles 11(2) and 11(3)
thereof,

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

Whereas:

(1)

(2)

A. PROCEDURE

1. Measures in force

On 27 November 2000, the Council imposed, by Regu-
lation (EC) No 2604/2000 (2), definitive anti-dumping
duties on imports of certain polyethylene terephthalate
(PET) originating in India,
the
Republic of Korea, Taiwan and Thailand (the countries
concerned). The measures imposed had been based on an
investigation)
anti-dumping investigation (the original
initiated pursuant to Article 5 of the basic Regulation.

Indonesia, Malaysia,

On 13 August 2004, the Council imposed, by Regulation
(EC) No 1467/2004 (3), definitive anti-dumping duties on
imports of certain PET originating in Australia and the
People's Republic of China (PRC) and terminated the
proceeding on imports of PET originating in Pakistan.

(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 301, 30.11.2000, p. 21. Regulation as last amended by Regu-

lation (EC) No 1646/2005 (OJ L 266, 11.10.2005, p. 10).

(3) OJ L 271, 19.8.2004, p. 1. Regulation as amended by Regulation

(EC) No 2167/2005 (OJ L 345, 28.12.2005, p. 11).

(3)

(4)

(5)

(6)

(7)

to

amendments made

The
(EC)
No 2604/2000 were the results of either review investi-
gations initiated pursuant to Article 11(3) and (4) of the
basic Regulation or of price undertakings being accepted
under Article 8(1) thereof.

Regulation

2. Request for reviews

to Article 11(2) of

impending
Following the publication of a notice of
expiry (4),
the Commission, on 30 August 2005,
to review the measures in force
received a request
pursuant
the basic Regulation
(expiry review), and to partially review the measures
from Taiwan and on imports
imposed on imports
from three exporting producers
in the Republic of
Korea pursuant to Article 11(3) of the basic Regulation
(partial interim review).

lodged

Polyethylene
The
request was
Terephthalate Committee
(the
Europe
applicant) on behalf of producers representing a major
proportion,
total
Community production of PET.

in this case more than 90 %, of

by
the
Plastics

of

The request
grounds that
likely to result
dumping and injury to the Community industry.

for the expiry review was based on the
the measures would be
recurrence of

in a continuation or

the expiry of

The request for the partial interim review of the measures
on imports from Taiwan and imports originating from
three exporting producers in the Republic of Korea
(Daehan Synthetic Fiber Co. Ltd, SK Chemicals Co. Ltd
and KP Chemical Corp.) was based on the grounds that
the level of the measures was not sufficient to counteract
the injurious dumping.

(4) OJ C 52, 2.3.2005, p. 2.

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Official Journal of the European Union

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(8)

(9)

after

determined,
that

consulting
sufficient evidence existed for

the Advisory
Having
Committee,
the
initiation of the two reviews, pursuant to Articles 11(2)
and 11(3) of
the
reviews on 1 Decem-
Commission initiated these
ber 2005 (1).

the basic Regulation respectively,

low number of

(13) After examination of the information submitted, given
the
in India,
Indonesia, the Republic of Korea and Taiwan indicating
it was decided that
their willingness
to cooperate,
exporting
as
sampling was not necessary
producers in these four countries.

exporting producers

regards

A Notice regarding the scope of the interim review was
Journal on 2 June 2006 (2)
published in the Official
making clear
interim
the partial
review also included all related companies.

the scope of

that

(14) Having

the

examined

by
Community producers and importers, and considering
that their number was not excessive, it was decided to
include all of them and that sampling was not necessary.

information

submitted

3. Parallel investigation

(10) On 1 December 2005, the Commission also initiated a
review pursuant to Article 18 of Council Regulation (EC)
No 2026/97 (3) on the countervailing measures in force
on imports of PET originating in India.

4. Parties concerned by the investigation

(11)

(12)

the

the
the

advised
of

officially
representatives

exporting
The Commission
exporting
producers,
countries,
importers, Community producers, users and
the applicant of the initiation of the expiry review and
the partial interim review. Interested parties were given
the opportunity to make their views known in writing
and to request a hearing within the time limit set out in
interested parties, who so
the notice of initiation. All
requested and showed that
there were particular
reasons why they should be heard, were granted a
hearing.

it was considered appropriate,

In view of the apparent large number of Indian, Indo-
nesian, Korean and Taiwanese exporting producers as
well as Community producers and importers listed in
the request for the expiry review and the number of
Taiwanese exporting producers listed in the request for
in
the interim review,
conformity with Article 17 of the basic Regulation, to
examine whether sampling should be used. In order to
enable the Commission to decide whether sampling
if so, to select a sample, the
would be necessary and,
parties were requested, pursuant to Article 17(2) of the
basic Regulation, to make themselves known within 15
days of the initiation of the reviews and to provide the
Commission with the information requested in the notice
of initiation.

(1) OJ C 304, 1.12.2005, p. 9.
(2) OJ C 129, 2.6.2006, p. 23.
(3) OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Regu-

lation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(15) Questionnaires were
producers

exporting
importers, suppliers, Community producers and users.

therefore
the
in

sent
countries

to all known
concerned,

(16)

Replies to the questionnaires were received from:

— three exporting producers in India,

— three exporting producers

in Indonesia (although
only two of these decided to accept a verification
visit),

— two exporting producers in Malaysia,

— four exporting producers in the Republic of Korea,

— three exporting producers in Taiwan (although only
two of these decided to accept a verification visit),

— one exporting producer in Thailand,

— two suppliers in the Community,

— 12 Community producers,

— 10 converters/users.

It was also found that one non-cooperating Indonesian
exporting producer had changed its name since the
the measures in force. This concerned
publication of
P.T. Bakrie Kasei Corp.
to P.T. Mitsubishi Chemical
Indonesia.

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(17)

The Commission sought and verified all the information
it deemed necessary for its analysis and carried out veri-
fication visits at the premises of the following companies:

(a)

India

Exporting producers

— Pearl Engineering Polymers Ltd, Delhi,

— SENPET, formerly Elque Polyesters Ltd, Calcutta,

— Futura Polyesters Ltd, Chennai;

Related exporter

— Plastosen Ltd, Calcutta,

(related to SENPET,

formerly Elque Polyesters Ltd);

(b) Indonesia

Exporting producers

— P.T. Polypet Karyapersada, Jakarta,

— P.T. Petnesia Resindo, Tangerang;

(c) Malaysia

Exporting producers

— MPI Polyester Industries Sdn. Bhd., Selangor,

— Hualon Corporation (M) Sdn. Bhd. Kuala Lumpur;

(d) Republic of Korea

Exporting producers

— Lotte Daesan Ltd, Seoul, Republic of Korea

(related to KP Chemicals Co Ltd);

Related traders/importers located in the Community

— SK Networks Deutschland GmbH, Frankfurt/Main,
Germany (related to SK Chemicals Co Ltd),

— SK Eurochem, Warsaw, Poland (related to SK

Chemicals Co Ltd);

(e) Taiwan

Exporting producers

— Shinkong Synthetic Fibers Corporation, Taipei,

— Far Eastern Textile Ltd, Taipei;

(f) Thailand

Exporting producer

— Bangkok Polyester Public company Ltd, Bangkok,

Thailand;

(g) Community producers

— Voridian BV (The Netherlands),

— M & G Polimeri Italia Spa (Italy),

— Equipolymers Srl (Italy),

— La Seda de Barcelona SA (Spain),

— Novapet SA (Spain),

— Selenis Industria de Polímeros SA (Portugal),

— SK Chemicals Co. Ltd, Seoul,

— Selenis Itália Spa (Italy);

— Huvis Corp., Seoul

(related to SK Chemicals

Co Ltd),

— KP Chemicals Corp., Seoul,

— Honam Petrochemicals Corp., Seoul (related to KP

Chemicals Co Ltd);

Related traders/importers located in the Republic of Korea

— SK Networks Ltd, Seoul (related to SK Chemicals

Co Ltd),

— Lotte Trading Ltd, Seoul, Republic of Korea

(related to KP Chemicals Co Ltd),

(h) Community Suppliers

— Interquisa SA (Spain);

(i) Unrelated importers in the Community

— Global Service International SRL (Italy);

(j) Community users

— Coca Cola Enterprises Europe Ltd (Belgium).

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(18)

examination of

The investigation of the likelihood of continuation and/or
recurrence of dumping and injury for the expiry review
covered the period from 1 October 2004 to 30
September 2005 (RIP). The
trends
relevant for the assessment of the likelihood of a conti-
nuation or recurrence of injury covered the period from
the RIP (period
1 January 2002 up to the end of
considered). The investigation period for
the partial
interim review pursuant to Article 11(3) of the basic
Regulation concerning imports from Taiwan and from
three exporting producers in the Republic of Korea is
the same as that of the expiry review.

Normal value

(23)

For the determination of normal value, it was first estab-
lished,
for each exporting producer, whether its total
domestic sales of the product concerned were represen-
tative in comparison with its total export sales to the
Community.
the
basic Regulation, domestic sales were considered repre-
sentative when the total domestic sales volume of each
exporting producer was at least 5 % of its total export
sales volume to the Community.

In accordance with Article 2(2) of

B. PRODUCT CONCERNED

(24)

1. Product concerned

(19)

The product concerned is the same as in the original
investigation i.e. PET with a coefficient of viscosity of
78 ml/g or higher, according to the ISO Standard
is
1628-5 originating in the countries concerned.
currently classifiable within CN code 3907 60 20.

It

Subsequently, those types of the product concerned sold
domestically by the exporting producers having overall
representative domestic sales, and that were identical or
directly comparable to the types sold for export to the
Community, were identified.

2. Like product

(20) As in the original

investigation and the review investi-
it was found that the product concerned, PET
gation,
produced and sold on the domestic markets in the
countries concerned and PET produced and sold by the
Community producers have the same basic physical and
these
chemical
products are considered to be like products within the
meaning of Article 1(4) of the basic Regulation.

and uses. Therefore,

characteristics

C. LIKELIHOOD OF A CONTINUATION AND/OR
RECURRENCE OF DUMPING

1. Dumping of

imports during the investigation

period — General principles

(21)

In accordance with Article 11(2) of the basic Regulation,
it was examined whether dumping was currently taking
place and whether or not the expiry of the measures
would be likely to lead to a continuation of dumping.

(25)

For each type sold by the exporting producers on their
domestic markets and found to be directly comparable
with the types of PET sold for export to the Community,
it was established whether domestic sales were suffi-
ciently representative for the purposes of Article 2(2) of
the basic Regulation. Domestic sales of a particular type
of PET were considered sufficiently representative when
the total domestic sales volume of that type during the
RIP represented 5 % or more of the total sales volume of
the comparable PET type exported to the Community.

(26) An examination was also made whether the domestic
sales of each type of PET could be regarded as having
been made in the ordinary course of trade, pursuant to
Article 2(4) of the basic Regulation. This was done by
establishing for each exporting producer in the countries
concerned, the proportion of profitable sales to inde-
pendent customers on the domestic market, of each
exported type of
concerned on the
the product
domestic market during the investigation period.

General methodology

(22)

The general methodology set out below has been applied
to all exporting producers in the countries concerned and
is the same as in the original investigation. The presen-
the
tation of
countries concerned therefore only describes what
is
specific for each exporting country.

the findings of dumping for each of

(a) For those product types where more than 80 %, by
volume, of sales on the domestic market were not
below unit costs, i.e. where the average sales price of
the product type concerned was equal to or higher
than the average production cost for the product type
concerned, normal value was
the
average price of all domestic sales of the product
type in question irrespective of whether these sales
were profitable or not.

calculated as

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(b) For those product types where at least 10 % but no
more than 80 %, by volume, of sales on the domestic
market were not below unit costs, normal value was
calculated as the weighted average sales price of those
transactions which were made at or above unit costs
of the type in question.

(c) For those product types where less than 10 %, by
volume, was sold on the domestic market at a
price not below unit cost,
it was considered that
type concerned was not sold in the
the product
trade and therefore, normal
ordinary course of
value had to be constructed in accordance with
Article 2(3) of the basic Regulation.

(31)

(32)

In the cases where normal values had to be constructed,
they were constructed in accordance with Article 2(6) of
the basic Regulation,
i.e. on the basis of the manufac-
turing cost of the type concerned, to which was added an
amount of selling, general and administrative (SG&A)
expenses and a margin of profit. The amount of SG&A
was that incurred by the exporting producer for the like
product and the amount of profit equated to the average
profit realised by the exporting producer on sales of the
like product in the ordinary course of trade.

Export price

In all cases where the product concerned was exported to
independent customers in the Community, the export
price was established in accordance with Article 2(8) of
the basic Regulation, namely on the basis of export
prices actually paid or payable.

(27)

(28)

(29)

basic Regulation. Appropriate adjustments were granted
in all cases where they were found to be reasonable,
accurate and supported by evidence.

Dumping margin

In accordance with Article 2(11) and (12) of the basic
Regulation, a dumping margin was calculated for each
cooperating exporting producer, by comparing the
weighted average normal value with the weighted
average export price.

For those countries where the level of cooperation was
found to be high (above 80 % of all volumes imported to
the Community during the RIP), and where there was no
reason to believe that any exporting producer abstained
from cooperating, the residual dumping margin was set
at the level of the cooperating exporting producer with
the highest dumping margin in order to ensure the effec-
tiveness of the measures.

(33)

For those countries where the level of cooperation was
found to be low (less than 80 % of all volumes imported
to the Community during the RIP), the residual dumping
margin was determined in accordance with Article 18 of
the basic Regulation, i.e. on the basis of facts available.

2. Dumping of

imports during the investigation

period — Country specific findings

India

P r e l i m i n a r y r e m a r k s

(34)

In cases where sales were made via a related importer or
trader, the export price was constructed on the basis of
the resale prices of that related importer to independent
customers. Adjustments were made for all costs incurred
between importation and resale including sales, general
and administrative expenses, and a reasonable profit
margin,
the basic
in accordance with Article 2(9) of
Regulation. The appropriate profit margin was estab-
lished on the basis of
information provided by
unrelated cooperating traders/importers operating on
the Community market.

the

two

investigation. The

Three out of five known exporting producers cooperated
with
non-cooperating
companies account for more than 80 % of India's total
PET production and around 25 % of India's exports to
the Community. The share of
Indian exports to the
Community in relation to Community consumption
amounted to 0,3 % in the RIP. Two of the three coop-
erating exporters hold price undertakings with respect to
their PET exports
to the Community, which were
concluded pursuant to the original investigation.

Comparison

(30)

The normal value and export price 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 the price and price
comparability in accordance with Article 2(10) of the

(35) With regards to two cooperating companies it was found
that their Community export prices were in compliance
with the minimum prices set by the undertakings. These
prices clearly exceeded the ones charged for sales to third
countries' markets. The latter sales were made in much
larger quantities than Community exports. This indicates
that the prices charged to Community customers do not
reflect the normal pricing behaviour of the Indian price
undertaking holders.

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D u m p i n g m a r g i n

(36) With respect to exports to the Community, the dumping
margins of the three cooperating exporting producers
were found to be in a range between no dumping and
17 %. It should be noted that the exporting producer
with no dumping holds a price undertaking and that
the quantity of its Community exports was very small
in proportion to its third country
(less than 10 %)
including
investigation
exports.
subsequent reviews dumping margins were in a range
between 14,7 % and 51,5 % (1). However,
the
imported quantities were indeed very small, the main
focus of the analysis is on the likelihood of recurrence
of dumping.

original

the

In

as

Indonesia

P r e l i m i n a r y r e m a r k s

(37)

there were

investigation established that

The
five
producers of PET in Indonesia during the RIP. As
three companies submitted
mentioned in recital 16,
two
but
responses
questionnaire
completed
companies accepted verification visits at their premises.
As it was thus impossible to verify whether the data
submitted by the third company in the questionnaire
reply was correct,
this company did not cooperate
properly in the investigation within the meaning of
Article 18 of the basic Regulation. The company was
informed accordingly and was given the opportunity to
comment on this finding.

only

(38) One of

the cooperating companies had a very small
these were
quantity of sales to the EU market but
made to one specialist user
sector.
Therefore, neither the volume nor the unit price of
these sales was considered to be representative. Apart
from this very small volume, no other
sales were
recorded in Eurostat on the EU market originating
from Indonesia.

in the medical

imports from Indonesia, no dumping margin could be
established.

Malaysia

P r e l i m i n a r y r e m a r k s

(40)

them had exports

Two Malaysian PET producers cooperated in the investi-
gation. Only one of
to the
Community, representing 100 % of the total Malaysian
exports of PET to the Community. Total imports of the
product concerned from Malaysia were small, i.e. in the
range of 2 000 to 4 000 tonnes when compared to the
Community market as a whole.

N o r m a l v a l u e

(41)

(42)

the

to the
For
exporting producer with exports
the like
Community in the RIP, domestic sales of
product were representative. Normal value was based
in the ordinary course of
on prices paid or payable,
trade, by
in
in Malaysia,
accordance with Article 2(1) of the basic Regulation.

independent

customers

The investigation revealed that the company's reported
cost of manufacturing was underestimated as factory
overhead costs (including depreciation, rent expenses,
salaries and maintenance) actually incurred during the
RIP were reclassified to SG&A expenses. The company
argued that this practise was made in order to reflect the
low capacity utilisation rate of its production facilities.
However, actual costs incurred do also include the reclas-
sified factory overhead costs. The fact that the company
operated at a fraction of its full capacity of production
does not mean that costs arising from such facilities are
not
such costs were listed in the
company's accounting records and since they were
the like product, a
directly linked to production of
correction of the reported cost of manufacturing had
to be completed.

incurred.

Indeed,

N o r m a l v a l u e , e x p o r t p r i c e a n d d u m p i n g
m a r g i n

(39) As the two cooperating companies made no represen-
tative sales on the EU market in the RIP, and the Eurostat
there were no further
import statistics showed that

(1) Regulation (EC) No 2604/2000, recital 125, and Regulation (EC)

No 496/2002 (OJ L 78, 21.3.2002, p. 4), recital 19.

E x p o r t p r i c e

(43)

For the same exporting producer, export prices were
established on the basis of the prices actually paid by
unrelated customers in the Community in accordance
with Article 2(8) of the basic Regulation.

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C o m p a r i s o n

(44)

To ensure a fair comparison, allowances were made for
differences in transport, insurance, handling, loading and
ancillary cost and credit costs where applicable and
justified.

(51)

The export volumes of the four cooperating exporting
producers plus the unverified quantities exported by
Daehan Synthetic Fiber Co. Ltd. represented close to
100 % of all Korean exports during the RIP from the
Republic of Korea to the Community as recorded by
Eurostat.

D u m p i n g m a r g i n

To calculate the dumping margin, the weighted average
normal values were compared to the weighted average
export price
the product
to the Community of
concerned.

the one

This comparison showed the existence of dumping of
around 5 % for
that
exported to the Community in the RIP. However, as
the imported quantities were indeed very small,
the
main focus of
the analysis is on the likelihood of
recurrence of dumping.

exporting producer

(52) As seen from recitals 16 and 17, the four cooperating
exporting producers that fully cooperated in the investi-
gation were the following:

— SK Chemicals Co. Ltd, Seoul,

— Huvis Corp., Seoul (related to SK Chemicals Co. Ltd),

— KP Chemicals Corp., Seoul,

— Honam Petrochemicals Corp., Seoul

(related to KP

Chemicals Co. Ltd).

The Republic of Korea

P r e l i m i n a r y r e m a r k s

(53)

to avoid any circumvention in the future,
In order
dumping margins have been calculated on a group-
wide basis.

(45)

(46)

(47)

is recalled that

It
the interim review was limited to
dumping as concerns Daehan Synthetic Fiber Co. Ltd,
SK Chemicals Co. Ltd and KP Chemicals Corp. Full ques-
tionnaire
three
companies.

replies were

from these

received

(48) Moreover, companies related to one of the aforemen-
tioned exporting producers
themselves
known. Thus, questionnaire replies were also received
from the exporting producers Honam Petrochemicals
and Huvis Corp.

also made

(49)

Prior to the on-the-spot investigation, Daehan Synthetic
Fiber Co Ltd. informed the Commission of its decision to
cease the production of PET in the Republic of Korea.
Consequently,
the
planned verification visit. Since this company thus
failed to cooperate within the meaning of Article 18 of
the basic Regulation, it should be subject to the residual
dumping margin.

company decided to cancel

the

(50) According to the request, there are ten producers in the
Republic of Korea which have the capacity to produce
PET. Out of these ten producers, five (including Daehan
Synthetic Fiber Co. Ltd) made themselves known to the
Commission and submitted questionnaire replies to the
Commission. Out of
five non-cooperating
the other
producers, one had cooperated with the Commission in
the original investigation.

N o r m a l v a l u e

(54)

For all types of PET exported by the Korean exporting
producers, it was possible to establish normal value on
the basis of the prices paid or payable in the ordinary
course of
trade by independent customers on the
domestic market, in accordance with Article 2(1) of the
basic Regulation.

E x p o r t p r i c e

(55)

via

to the Community directly
companies
related

Two of the Korean exporting producers made export
to independent
sales
in the
located
customers,
Republic of Korea and related importers located in the
Community. Consequently,
situation, a
constructed export price has been established pursuant
to Article 2(9) of the basic Regulation.

in the latter

C o m p a r i s o n

(56) Allowances

for differences

insurance,
handling charges, commissions, credit, packing, customs
duties (duty drawback) and bank charges have been
granted where justified and duly supported by evidence.

in transport,

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(57)

A l l o w a n c e f o r d u t y d r a w b a c k a n d c r e d i t
c o s t

by

the

Two of the Korean exporting producers made a claim for
duty drawback on the grounds that import charges were
product when intended
for
like
borne
consumption in the
country but were
exporting
refunded when the product was sold for export to the
Community. In each case, the amount claimed was found
to be higher than the amount of duty borne by the like
product
the
allowances were adjusted accordingly. The methodology
used in the present investigation was compatible with the
conditions set out in Article 2(10)(b) of the basic Regu-
lation in so far as it accurately reflected the actual import
level of duties borne by the like product.

in the domestic market and therefore,

production and 99 % of Taiwan's total exports to the
Community. The share of Taiwan's exports
to the
Community in relation to Community consumption
amounted to 1,2 % as regards the RIP.

(62) A third Taiwanese exporting producer initially filed a
questionnaire response but ceased further cooperation
prior
to the on-the-spot verification. The company's
failure to allow Commission officials to verify its ques-
tionnaire response on-spot is tantamount to not coop-
erating with the investigation. By virtue of Article 18 of
the basic Regulation this company should be subject to
the residual dumping margin.

(58)

In addition, both exporting producers claimed credit
costs on the basis of the actual credit period taken by
customers under the ‘open account’ payment system used
on the Korean domestic market. It was found that under
such a system, generally, the exporting producers did not
actually grant specific credit periods and furthermore, the
credit periods taken could not be accurately determined,
as receipts could not be linked to specific invoices. In
these circumstances,
these allowances could not be
granted.

N o r m a l v a l u e

(63)

For all types of PET exported by the Taiwanese exporting
producers, it was possible to establish normal values on
the basis of the prices paid or payable in the ordinary
trade by independent customers on the
course of
domestic market, in accordance with Article 2(1) of the
basic Regulation.

E x p o r t p r i c e

D u m p i n g m a r g i n

(64)

(59) As provided by Article 2(11) and (12) of the basic Regu-
lation, the weighted average normal values of each type
of the product concerned exported to the Community
were compared to the weighted average export price of
each corresponding type of the product concerned.

export

Both cooperating Taiwanese exporting producers made
direct
Community
customers. Export prices could be assessed on the basis
the prices paid or payable by these customers
of
according to Article 2(8) of the basic Regulation.

independent

sales

to

(60)

This comparison showed the existence of de minimis
dumping for the exporting producers that exported to
the Community in the RIP.

(65) Allowances

for differences

insurance,
handling charges, credit, packing and bank charges
were applied.

in transport,

C o m p a r i s o n

Taiwan

P r e l i m i n a r y r e m a r k s

(61)

Two out of four known exporting producers cooperated
with the investigation. The two cooperating companies
for more than 80 % of Taiwan's total PET
account

D u m p i n g m a r g i n

(66) As provided by Article 2(11) and (12) of the basic Regu-
lation, the weighted average normal values of each type
of the product concerned exported to the Community
were compared to the weighted average export price of
each corresponding type of the product concerned.

27.2.2007

EN

Official Journal of the European Union

L 59/9

the

the

Indeed,

comparison of

(67) On the basis of such comparison, the dumping margin
found was below the de minimis margin in the case of Far
Eastern Textile. In case of Shinkong, the dumping margin
amounted to 6,5 %. However, for Far Eastern Textile, the
the
investigation showed that
weighted average normal value with the weighted
average export prices did not reflect the full degree of
dumping being practised.
investigation
showed that significant volumes (around 25 % of all
exports to the Community) were made at significantly
low prices and were concentrated on one customer. In
addition, exports to all Community destinations were
made at significantly decreased prices during the last
four months of the RIP in comparison with the first
eight months of the RIP. Therefore, another comparison
methodology had to be applied. An important difference
was found between the dumping margins resulting from
a comparison average-to-average against the comparison
transaction-to-average. With regard to the transaction-to-
transaction comparison, it was not found to be an appro-
priate
the
process of selecting individual transactions in order to
make such a comparison was considered arbitrary in
this case. Thus, a comparison on the basis of the trans-
action-to-average was made in accordance with Article
2(11) of the basic Regulation. Thus a clear pattern of
exports differing by customer and by time existed.

comparison method because

alternative

The residual duty should be based on the presently
applicable residual duty for Taiwan given that no
change in circumstances was found in that respect. It
amounts to EUR 143,4/t.

(70) As regards the two companies that failed to cooperate
with the investigation, it is considered that information
available should be applied in accordance with Article 18
of the basic Regulation. In fact, these companies should
be allocated the residual duty.

Thailand

P r e l i m i n a r y r e m a r k s

(71) Only one Thai producer of PET cooperated in the inves-
tigation and had no exports to the Community during
the RIP. According to Eurostat,
import volumes origi-
nating in Thailand were negligible during the RIP.
However,
three
other PET producers in Thailand during the RIP which
did not cooperate in the investigation.

is known that

there were at

least

it

(68) On that basis, the dumping margin resulting from the
transaction-to-average comparison is considered for the
sake of
the further analysis on the continuation of
dumping. In case of Shinkong, the difference between
the dumping margins calculated according to the two
significant and no patterns
methodologies was not
the dumping margin resulting
were found. Therefore,
from the
comparison should be
average-to-average
considered for that company.

(72)

In the absence of exports of PET to the Community by
the only cooperating producer, no dumping calculation
could be made for the cooperating producer.

(69)

Subsequently, the dumping margins established for the
two cooperating exporting producers are as follows:

3. Developments of

imports should measures be

repealed

P r e l i m i n a r y r e m a r k s

Far Eastern Textile Ltd

Shinkong Synthetic Fibers Corp.

3,5 %

6,5 %

(73)

When expressed on a specific basis,
margins correspond to the following specific duties:

these percentage

Far Eastern Textile Ltd

EUR 36,3/t

Shinkong Synthetic Fibers Corp.

EUR 67/t

should the measures be repealed,

In order to establish whether dumping would be likely to
recur
the pricing
behaviour of
the cooperating exporting producers to
other export markets and their production, capacity
and stocks were examined. The analysis was based on
i.e. the information provided
the information available,
and verified in the questionnaire replies by the coop-
erating producers mentioned in section A.4. An
analysis was also made as to the pricing behaviour,
production and production capacity of other exporting
producers in the countries concerned by the proceedings.
This analysis was based on market
intelligence data
supplied by the Community industry and exporting
producers,
and when
imports
available, export statistics from the countries concerned.

statistics

Eurostat

L 59/10

EN

Official Journal of the European Union

27.2.2007

India

U n u s e d c a p a c i t i e s a n d s t o c k s

P r e l i m i n a r y r e m a r k s

(78)

(74)

The likely scenario of what would happen if measures
were repealed has been based on:

— the verified questionnaire replies by the three coop-
fully cooperated

erating exporting producers that
with the investigation, and

— a market intelligence report produced by an inde-
pendent consultancy and submitted by the applicant.

Considering spare capacities, it is reiterated that the two
largest
Indian producers did not cooperate with the
investigation. It was found though that their overall capa-
the Community
cities amounted to around 23 % of
consumption during the RIP. On the basis of information
available the unused part of their capacities is substantial,
reaching between 80 000 and 130 000 tonnes.
In
addition, the three cooperating producers also dispose
of
there are
substantial
in India. The
Indian market
is also characterised by an excess of
In this context, producers may choose to
supply.
at
excess
redirect
continuously
if
measures are repealed.

some unused capacities. To conclude,
capacities

the Community
prices
dumped

to
increasingly

quantities

available

spare

and

R e l a t i o n s h i p
i n
C o m m u n i t y a n d p r i c e s w i t h i n I n d i a

b e t w e e n

p r i c e s

t h e

C o n c l u s i o n o n I n d i a

that are at

Prices in the Community were generally lower than
Indian domestic prices. Exports are likely to be made
than the
least
at prices
current Community
be
prices.
is likely that exports to the Community
repealed,
it
the
would be made at dumped prices assuming that
same price levels would be maintained.

Should measures

slightly lower

(79)

it appears that unused
Should measures be repealed,
capacities are likely to be directed to the Community.
Given the price relationships
found, particularly the
price relationship between prices in the Community
and prices within India, such Community exports are
likely to be made at dumped prices.

R e l a t i o n s h i p b e t w e e n e x p o r t p r i c e s
t o
t h i r d c o u n t r i e s a n d p r i c e s w i t h i n I n d i a

Indonesia

(75)

(76)

Indian export prices to third countries were generally
lower than its domestic prices. This price difference
amounted to up to 24 % of the export price level. This
indicates that exports to the Community may be made at
equally dumped prices should measures be repealed. The
margins found are indeed higher than the current level of
dumping to the EC found as described above. It is noted
that, 1. this current level of dumping found to the EC
was established on the basis of small export volumes and
2. that some of these exports were made under the terms
of a price undertaking which has had a correcting effect
on the level of export prices. Should measures be
repealed,
the margin of
thus probable
dumping would even be higher.

that

is

it

R e l a t i o n s h i p
p r i c e s
l e v e l

i n t h e C o m m u n i t y

e x p o r t
t o t h i r d c o u n t r i e s a n d t h e p r i c e

b e t w e e n

I n d i a n

(77)

Indian export prices to third countries were generally
below the price level
in the Community. Therefore if
measures were repealed, Indian exporters are likely to
export PET in larger quantities to the Community and
at prices approaching those charged to third countries
during the RIP. As a consequence, it appears likely that
the dumping established with regard to exports to the
Community for
the RIP may even increase should
measures be repealed.

R e l a t i o n s h i p
t h e
C o m m u n i t y a n d p r i c e s w i t h i n I n d o n e s i a

b e t w e e n

p r i c e s

i n

(80)

Prices in the Community were generally higher than
those achieved by the two cooperating Indonesian
exporting producers on their domestic market. This
would suggest that it would be an attractive alternative
for the Indonesian exporting producers to shift sales to
the Community should the anti-dumping measures be
repealed.

R e l a t i o n s h i p b e t w e e n e x p o r t p r i c e s
t h i r d
I n d o n e s i a

c o u n t r i e s

p r i c e s

a n d

t o
w i t h i n

(81)

For Polypet, which was operating at a loss on all markets,
domestic prices were not seen as reliable and hence a
normal value had to be constructed based on its cost of
production plus a normal profit. A profit margin of 7 %,
equivalent to the margin used in the original
investi-
gation was used for the calculations. A 25,0 % price
constructed
difference was
normal value and the export prices to third countries.
The fact
that export prices were lower than normal
value by this amount suggests a likelihood of recurrence
of dumping on the Community market should measures
be repealed.

identified between this

27.2.2007

EN

Official Journal of the European Union

L 59/11

(82)

(83)

(88)

Petnesia was operating at around breakeven during the
RIP and normal value was therefore calculated using both
domestic sales and a constructed normal value using the
same method as described above for Polypet. The
difference between the normal values and the export
price to third countries was between 5 and 10 % (for
these methods). The fact that export prices were lower
than normal value by this amount suggests a likelihood
of recurrence of dumping on the Community market
should measures be repealed.

the

the

cooperating
export prices of
Furthermore,
exporting producers on third country markets and the
Indonesian domestic market are considerably lower than
Community industry sales prices in the Community.
Taken together with the availability of spare capacity,
the Indonesian
there
is
exporting
the
to
sales
Community market should measures be repealed and
that these sales are likely to be dumped.

therefore an incentive for
increase

producers

to

R e l a t i o n s h i p b e t w e e n I n d o n e s i a n e x p o r t
p r i c e s
t o t h i r d c o u n t r i e s a n d t h e p r i c e
l e v e l

i n t h e C o m m u n i t y

The sales prices of the Community producers for sales in
the EU were established at EUR 1 058 in the RIP. In the
same period, the sales prices of the Indonesian exporters
were EUR 911 to third country markets. Therefore sales
on the EU market were 16 % higher than on other
it would be an
that
markets. This would suggest
attractive
Indonesian exporting
the
alternative
producers to shift sales to the Community should the
anti-dumping measures be repealed.

for

Malaysia

P r e l i m i n a r y r e m a r k s

(89) While the total estimated production and sales of the
product concerned by Malaysian producers is estimated
at around 120 000 tonnes, the total consumption of PET
in Malaysia is only around 60 000 tonnes. With a
domestic market
is capable of consuming only
about half of the total production and sales, it is clear
that Malaysian producers of the product concerned are in
general dependent on export markets for the conti-
nuation of operations at current capacities.

that

U n u s e d c a p a c i t i e s a n d s t o c k s

(84) As mentioned above, five producers were operating in
Indonesia during the RIP. The market intelligence report
shows 324 000 tonnes of production in Indonesia and
the cooperating producers represented around 47 % of
Information from the cooperating producers and
this.
market intelligence suggest that unused capacities were
around 10 % of total capacity or around 37 000 tonnes.
This
Community
consumption.

represents

around

1,5 %

of

R e l a t i o n s h i p
p r i c e s
C o m m u n i t y

b e t w e e n
l e v e l a n d t h e p r i c e l e v e l

t h e

d o m e s t i c
i n t h e

(90)

The investigation revealed that domestic prices were
about 10 to 20 % lower than average prices charged
on the Community market. There is no reason to
conclude that this would change should the measures
be repealed.

(85)

Information from the cooperating producers showed that
stocking of PET was low.

(91)

(86)

In respect to unused capacities and stocks, the investi-
gation showed that a significant volume of PET could be
made available for sale on the Community market.

(92)

C o n c l u s i o n o n I n d o n e s i a

(87)

The assessment of the abovementioned factors showed
that there was a substantial difference in price between
those realised by the Indonesian producers in third
country markets and their normal value.

R e l a t i o n s h i p
p r i c e s
c o u n t r i e s

b e t w e e n
l e v e l a n d e x p o r t p r i c e s

t h e

d o m e s t i c
t o t h i r d

The information provided by both the cooperating
exporters mentioned above in recital 17, showed that
exports to third countries were made in large volumes
accounting for 67 % of total sales in the RIP.

For one Malaysian exporter, which had exported to the
Community, the weighted average export prices to third
countries were below the weighted average normal
values, which were established for its dumping calcu-
lation, and also appeared to be lower than the sales
prices
this
Malaysian exporter
its PET at probably
dumped prices to third country markets, and that the
price difference is even higher than the one found on
the European market.

to the Community. This

also sells

indicates

that

L 59/12

EN

Official Journal of the European Union

27.2.2007

(93)

For the other exporter, which had no exports to the
Community in the RIP, the investigation revealed that
average export prices to third countries were below the
cost of production, which also indicates that the like
product is also dumped on third markets.

C o n c l u s i o n o n M a l a y s i a

(99)

The investigation has shown that one of the cooperating
producers continued its dumping practices despite the
measures in force.

(94)

The above indicates a strong likelihood of a recurrence of
dumping on exports to the Community should the
measures be repealed.

R e l a t i o n s h i p b e t w e e n e x p o r t p r i c e s
l e v e l
t h i r d c o u n t r i e s
t h e C o m m u n i t y

a n d t h e p r i c e

t o
i n

(95)

The information provided by the cooperating exporters
mentioned above in recital 17, showed that exports to
third countries were made at a weighted average export
price significantly below the Community industry sales
prices in the Community.

(100) Furthermore, the weighted average export prices of the
cooperating
exporting producers on third country
markets and the prices of sales on the domestic market
are also considerably lower than the prevailing price level
in the Community. Taken together with the low capacity
the
utilisation,
therefore
the
Malaysian
should
Community market at
measures be repealed.

to
likely dumped prices

an incentive
shift

there
is
exporting

producers

for
to

The Republic of Korea

(96) With the prevailing price level,

it can therefore be
concluded that the Community would be considered as
an attractive market for producing exporters in Malaysia.
On this basis it is considered that there would be an
economic incentive for a shift
from exports to third
countries to the more profitable Community market
should the measures be repealed. Should sales shift to
the Community these are also likely to be at dumped
prices.

(101)

R e l a t i o n s h i p
C o m m u n i t y
a n d
R e p u b l i c o f K o r e a

b e t w e e n

p r i c e s

i n
w i t h i n

t h e
t h e

p r i c e s

it has been explained that the dumping
In recital 60,
margins found for all four of the cooperating exporting
producers were below de minimis. It is recalled that these
exports took place during the period when two of the
cooperating exporters were able to export at zero-duty to
four
the Community. As
exporting producers represented close to 100 % of all
imports of PET during the RIP (as
reported by
Eurostat), there seems to be a low risk of recurrence of
dumping by any of the exporting producers which coop-
erated in the investigation.

from these

exports

the

(97)

(98)

U n u s e d c a p a c i t i e s a n d s t o c k s

The investigation revealed that the capacity utilisation of
the two sole cooperating producers was very low during
the RIP, i.e. in the range of between 30 and 80 %. On
this basis, it can be concluded that there are significant
spare
in Malaysia. Should measures be
repealed, there would be an incentive for the Malaysian
exporting producers
spare capacity and
to use this
increase export sales, notably to the Community.

capacities

The two cooperating exporting producers were found to
have a normal level of stock. It is however noted that
stocks cannot be considered a meaningful
indicator
because the production of PET in Malaysia is mostly
based on orders from customers. Therefore, stocks are
mainly made up of PET that is waiting to be shipped to
already known customers.

(102) The investigation has shown that prices on the Korean
domestic market charged by the cooperating companies
than those charged by the Community
are higher
industry on the Community market. There is no reason
to believe that those domestic prices found for the coop-
erating companies were not representative or that non-
cooperating exporting producers
significantly
lower prices on the domestic market than the coop-
it is likely that the non-
erating companies. Moreover,
cooperating companies which did not sell
to the EC
would sell at low prices to regain lost market share on
the EC market. This suggests a likelihood of recurrence of
dumping from the non-cooperating companies, should
measures be repealed. It is also noted that these non-
cooperating companies exported to the community in
the original
investigation in quantities that were not
insignificant.

sell at

27.2.2007

EN

Official Journal of the European Union

L 59/13

R e l a t i o n s h i p b e t w e e n e x p o r t p r i c e s
t h i r d c o u n t r i e s
R e p u b l i c o f K o r e a

t o
a n d p r i c e s w i t h i n t h e

(103) For

the

cooperating

exporting producers,

a price
difference between the prevailing price level on the
Korean domestic market and their exports
to third
countries of around 5 % was found. Still, given that
they have had the possibility to export unlimited quan-
tities of PET to the Community at zero duty, the risk for
trade diversion to the Community appears to be rather
low.

(104) Export prices to third countries were also available on a
general basis, including such prices that were charged by
not cooperating producers. The latter prices were lower
cooperating
than the domestic prices
producers. This price difference
that
exports to the Community may be made at dumped
prices should measures be repealed.

again shows

charged by

R e l a t i o n s h i p
p r i c e s
l e v e l

i n t h e C o m m u n i t y

e x p o r t
t o t h i r d c o u n t r i e s a n d t h e p r i c e

b e t w e e n

K o r e a n

(105) The investigation showed that the cooperating exporting
producers in the Republic of Korea have sold significant
quantities to third countries. Still, for SK Chemicals and
KP Chemicals, given that they have had the possibility to
export unlimited quantities of PET to the Community at
zero duty, the risk of trade diversion by the cooperating
exporting producers appears to be rather low.

(106) For non-cooperating exporting producers,

information
from a market intelligence report and information from
the Korean statistical office had been used.

(107) When summarising the overall exports to third countries
by Korean exporting producers in the RIP (727 000
tonnes) as reported by Korean statistical office and
deducting the exports by the cooperating exporting
producers (320 000 tonnes), the total exports by non-
cooperating exporting producers have been calculated to
407 000 tonnes.

(108) The quantities exported to each destination by the non-
cooperating exporting producers were established by
taking the overall exports by destination and deducting
exports by the cooperating exporting producers by desti-

nation. The five destinations to which the non-coop-
erating exporting producers
assumed to have
exported the largest quantities are the PRC followed by
Ukraine, Japan, Tunisia and the Islamic Republic of Iran.

are

(109) On the basis of export values provided by the Korean
statistical office, the weighted average price to the five
destinations with the largest exports has been calculated
as EUR 759/tonne. Whereas this price is based on rough
unverified statistical data (partially containing statistical
values by the cooperating exporting producers, and
possibly containing exports prices to related companies
as well as prices excluding ocean freight), the average
price
average
remains
than the
to the Community (about
import prices (at cif
25 %).

significantly lower
level)

are

exports

significantly lower

(110) On this basis, i.e. given the apparent significant volumes
of
to third countries by non-cooperating
exporting producers and the fact that prices to the five
the non-cooperating exporting
largest destinations of
producers
than the average
import price into the Community, there appears to be
a significant risk of trade diversion by non-cooperating
should measures be allowed to
exporting producers
lapse. Given the significant dumping margin found
(55 %) for the biggest of the non-cooperating exporting
producers in the original investigation, it is highly likely
that
the non-cooperating exporting producers would
resume their dumping practises, should measures be
repealed.

U n u s e d c a p a c i t i e s a n d s t o c k s

(111) For the cooperating exporting producers, they were all
found to have a normal level of stock and were operating
at almost full capacity. Thus, the risk of recurrence of
dumping on this basis appears to be very limited.

(112) For

the non-cooperating

exporting producers,

the
the overall
capacity was established on the basis of
capacity of Korean exporting producers given by
market intelligence. No information is available on the
the
level of stock. When subtracting the capacity of
overall
cooperating
Korean capacity, an estimated capacity for the non-coop-
erating exporting producers has been calculated. This
capacity has been estimated to be at around 550 000
tonnes which would correspond to a market share of
23 % of the total Community consumption.

from the

exporting

producer

L 59/14

EN

Official Journal of the European Union

27.2.2007

(113) Based on the market intelligence report, unused capacity
for the Republic of Korea as a whole is estimated at
around 200 000 tonnes. Thus,
it cannot be excluded
that there is a risk of recurrence of dumping by non-
cooperating exporting producers with unused capacity
should measures be repealed.

C o n c l u s i o n o n t h e R e p u b l i c o f K o r e a

risk of

to be no apparent

the four cooperating companies

there
(114) Although for
seems
recurrence of
dumping, the investigation has shown that for the non-
cooperating companies a real
recurrence of
dumping exists. This was shown by a comparison of
the prevailing price level on the Korean domestic
market and the price level on the Community market
as well as by a comparison of that domestic price level
with the average export price level
to third country
markets.

risk of

(115) Moreover, a significant

threat of

trade diversion can
indeed be
found when comparing the
significant
to third countries, at
they sell
volumes of PET that
prices which are significantly lower than the prices at
which PET is imported to the Community. Given the
history
non-cooperating
of
companies (at 55 % in the original investigation), there
is no reason to believe that those companies would not
resume their dumping practices should measures be
allowed to lapse.

dumping

those

of

countries

it cannot be ruled out that export prices to the
basis,
Community will follow the trend of Taiwanese prices to
other
are
repealed. Therefore, dumping is likely to recur under
such a scenario. This assessment is based on the data
supplied by cooperating producers as no other data
could be retrieved in this regard.

Japan) once measures

(except

R e l a t i o n s h i p b e t w e e n T a i w a n e s e e x p o r t
p r i c e s
t o t h i r d c o u n t r i e s a n d t h e p r i c e
l e v e l

i n t h e C o m m u n i t y

level

duties

during

the RIP.

anti-dumping

to other markets. Under

(118) Taiwanese export prices to third countries were signifi-
cantly below the price
in the Community.
Taiwanese exports to other countries were not subject
Should
to
measures be repealed it cannot be excluded that export
prices to the Community would follow the trend of
prices
such circumstances,
future exports to the Community would be made at
dumped prices. Again, this assessment is based on data
provided by cooperating producers. However, as there is
no information available indicating that the export prices
to third countries or domestic prices found for the coop-
erating companies would not be representative for all
Taiwanese
be
concluded that future exports to the EC from the non-
cooperating companies would be likely to be made at
dumped prices.

producers,

exporting

also

can

it

Taiwan

b e t w e e n
R e l a t i o n s h i p
C o m m u n i t y a n d p r i c e s w i t h i n T a i w a n

p r i c e s

i n

t h e

(116) Taiwanese domestic prices of cooperating and non-coop-
erating exporting producers were generally lower than
in the Community. The former prices were
prices
the Community
indeed profitable. This means
price
from a
Taiwanese exporting producer's point of view. Given
the price relationship found, Taiwanese export prices
than the
are also likely to be significantly lower
averages prices charged by the Community industry.

level would also be very attractive

that

R e l a t i o n s h i p b e t w e e n e x p o r t p r i c e s
t h i r d
T a i w a n

c o u n t r i e s

p r i c e s

a n d

t o
w i t h i n

(117)

In case of one cooperating producer, prices to third
significantly
countries were
than Taiwanese
domestic prices.
In the case of the other cooperating
producer that mainly sold to Japan, export prices to
third countries exceeded domestic sales prices. On that

lower

U n u s e d c a p a c i t i e s a n d s t o c k s

(119) While one cooperating company made full use of its
capacity during the RIP, the other one did not use a
significant quantity of its total capacity. The companies
not cooperating with the investigation seem to have
unused capacities in a range between 400 000 and
500 000 tonnes. This amounts to around 20 % of the
Community consumption during the RIP. Indeed, given
the attractive price level on the Community market, such
unused capacities are likely to be redirected to the
Community should measures be repealed.

C o n c l u s i o n o n T a i w a n

(120) With a view to the unused capacities, it appears that such
capacities are likely to be redirected to the Community
should measures be repealed. Moreover, such Community
exports are likely to be made at dumped prices given the
low price level for exports to third country markets, with
the exception of Japan. Community prices are likely to be
put under pressure once larger quantities are imported
into the Community market. Such a downwards price
trend is likely to exacerbate the dumping established
for the RIP.

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Thailand

P r e l i m i n a r y r e m a r k s

exports to third countries were made at a weighted
average export price significantly below the Community
industry sales prices in the Community.

(121) As outlined in recital 71 it is known that there were at
least three other PET producers in Thailand during the
RIP which did not cooperate in the investigation. For
those
information
available from Eurostat and other sources were analysed.

non-cooperating

producers,

the

(122) The information on stocks and sales to third markets
It
refers only to the cooperating exporting producer.
was possible to obtain data on the overall production
capacity in Thailand and to make an estimate of the
production volume of
in
all
Thailand based on market intelligence. In this respect,
for non-cooperating
it was considered that
companies could not be more favourable than those
established for cooperating companies.

exporting producers

findings

R e l a t i o n s h i p
p r i c e s
l e v e l
C o m m u n i t y

b e t w e e n
a n d

p r i c e

t h e

l e v e l

d o m e s t i c
t h e

i n

(123) The investigation revealed that domestic prices were 10
to 20 % lower
than average prices charged on the
Community market. There is no reason to conclude
that this would change should the measures be repealed.

R e l a t i o n s h i p
p r i c e s
c o u n t r i e s

b e t w e e n
l e v e l a n d e x p o r t p r i c e s

t h e

d o m e s t i c
t o t h i r d

(124) The information provided by the cooperating producing
exporter mentioned above in recital 17 which did not
export to the Community, showed that exports to third
countries were made in large volumes accounting for
over 80 % of total sales in the RIP. It was also found
that the average export prices to third countries were
below cost, which indicates that the product is sold at
dumped prices on third country markets. Moreover,
concerning the non-cooperating companies, there is no
their pricing
information available
behaviour is different regarding the Thai domestic or
third country markets and it can therefore be assumed
that they also sell at lower prices to third countries than
on their domestic market.

to indicate

that

R e l a t i o n s h i p b e t w e e n e x p o r t p r i c e s
t h i r d c o u n t r i e s
l e v e l
t h e C o m m u n i t y

a n d t h e p r i c e

t o
i n

(125) The information provided by the cooperating exporter
which did not export to the Community, showed that

(126) Assuming

that

level

in the
the prevailing price
Community would remain the same, it can therefore be
concluded that the Community would be a considered an
attractive market for producing exporters in Thailand. On
this basis
there would be an
from exports to third
economic incentive for a shift
countries to the more profitable Community market
should the measures be repealed.

is considered that

it

U n u s e d c a p a c i t i e s a n d s t o c k s

(127) There are significant spare capacities in Thailand. The
investigation revealed that the capacity utilisation of the
cooperating exporting producer was found to be low
during the RIP.

the non-cooperating producing exporters

(128) According to the market intelligence report, the capacity
level of
is
estimated at around 500 000 tonnes with a total
production of around 430 000. Based on these figures
the spare capacity would amount
to approximately
70 000 tonnes. This spare capacity would amount to
around 2,9 % of
the total Community consumption,
should it be directed towards sales on the Community
market.

suggests

intelligence data
that
in Thailand can absorb less

(129) Overall, market
the
than
domestic market
94 000 tonnes or 25 % of the domestic production of
PET. Under these circumstances, Thai producers of the
product concerned are heavily dependent on export sales
for the continuation of operation at current capacity.
Under these circumstances, there is a strong likelihood
to the EC would increase should the
that exports
measures be repealed. Therefore,
it cannot be excluded
that
the Thai exporting producers would lower their
export prices to the Community to a level of export
prices for other third country markets,
in an effort to
regain lost market, should measures be repealed. Thus, it
cannot be excluded that there is a threat of recurrence of
dumping by non-cooperating exporting producers should
measures be repealed.

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Official Journal of the European Union

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(130) The cooperating exporting producer was found to have a
normal
level of stock. It is however noted that stocks
cannot be considered a meaningful indicator because the
production of PET in Thailand is mostly based on orders
from customers. Therefore, stocks are mainly made up of
PET that
is waiting to be shipped to already known
customers.

Indonesia, Malaysia, Taiwan and Thailand should be
maintained.

The Republic of Korea

C o n c l u s i o n o n T h a i l a n d

(131) As the sole cooperating exporting producer did not
export to the Community, the investigation could not
conclude as to whether dumping continues despite the
measures in force.

(135) On the basis of

there

seems

information collected for non-coop-
erating exporting producers,
to be a
significant risk of recurrence of dumping. This risk is
based primarily on data
significant
production and export capacity by the non-cooperating
exporting producers and, as demonstrated by dumping
practises in the original investigation, would in all like-
lihood materialise as exports at dumped prices to the
Community should measures be repealed.

suggesting

a

(132) However the weighted average export prices of the coop-
erating exporting producer on third country markets and
the prices of sales on the domestic market were consid-
erably lower than Community industry sales prices in the
Community. The sales prices were below the cost of
production. This is considered as an indicator that sales
would probably be made at dumped prices
should
measures be repealed. Moreover, given the attractive
price level in the Community, there is an incentive for
the Thai exporting producers to sell to the Community
market should the measures be repealed.

(136) Accordingly, it is proposed that measures applicable to
imports of PET originating in the Republic of Korea
should be maintained.

D. LASTING NATURE OF CHANGED CIRCUMSTANCES

(137)

In accordance with Article 11(3) of the basic Regulation,
it was also examined whether the changed circumstances
with respect
investigation regarding
dumping could reasonably be considered to be of a
lasting nature.

to the original

(133) For

the

exporting

producers,

non-cooperating

a
significant threat of trade diversion can be found when
comparing the domestic demand and the significant
volumes of PET that are sold to third countries. It is
recalled, as stated in recital 131 and onwards, that Thai
producers are heavily dependent on exports and that
there is a large overall spare capacity that could be
diverted towards the Community. Given their history of
dumping (at 32,5 % in the original
it
appears that there is a risk for recurrence of dumping
should measures be repealed.

investigation),

The Republic of Korea

(138)

It is recalled that the scope of the interim review in
the Republic of Korea is limited to the
respect of
dumping margins
companies
SK Chemicals Co. Ltd, KP Chemicals Corp. and Daehan
Synthetic Fibres Co. Ltd and their related companies.

three

the

for

4. Conclusion on the likelihood of a continuation

and/or recurrence of dumping

India, Indonesia, Malaysia, Taiwan and Thailand

(134) On the basis of the above, it is concluded that dumping
is likely to continue and/or recur should measures be
repealed. Accordingly,
is proposed that measures
applicable to imports of PET originating in India,

it

Cooperating exporting producers (SK Chemicals Co. Ltd and
KP Chemicals Corp.)

(139) For the cooperating exporting producers which exported
PET to the Community during the RIP,
the interim
review showed that their dumping margin remained at
a de minimis level. The main reason for this was that
whilst the normal values and domestic sales prices for
these companies had risen as compared to the data in the
original
investigation, sales prices on the Community
market had increased correspondingly.

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(140) No indications were found suggesting that these changes
leading to a de minimis dumping margin would not be of
lasting nature, as all of
the cooperating exporting
producers had been found to operate at a high capacity
utilisation rate (above 90 %). Moreover, none of them
had any plans to increase their production capacity in
the Republic of Korea.
them, SK
Chemicals, had set up a production plant within the
Community and is more likely to decrease its exports
from the Republic of Korea.

Indeed one of

Other exporting producers (Daehan Synthetic Fibres Co. Ltd)

(141) For the exporting producer Daehan, which, as stated in
recital 49, eventually chose not to cooperate in the inves-
tigation, none of the facts related to this company could
be verified.

(142) Thus, the conclusion for this company had to be based
on facts available in accordance with Article 18 of the
basic Regulation, i.e. on the basis of information in the
complaint and information in the unverified ques-
tionnaire.

Conclusion on the Republic of Korea

(143) For the two cooperating exporting producer groups, SK
Chemicals and KP Chemicals, the circumstances under
which the dumping margins have been calculated in
this investigation can be considered to be of
lasting
nature.

(146) Far Eastern Textiles has been subject to a zero duty since
Council Regulation (EC) No 83/2005 was adopted (1).
The other cooperating exporting producer, Shinkong
Synthetic Fibres, was allocated a dumping margin of
3,1 % by the same Regulation.

(147) On the basis of the analysis on dumping carried out for
the RIP, changed dumping margins of 3,5 % for Far
Eastern and 6,5 % for Shinkong have been established.

(148) For the two cooperating producers which exported to the
Community during the RIP, there is no reason to believe
that the nature of the changes between the current and
the previous investigations, particularly the changes in
export prices to the Community and normal values
that both led to the revised dumping margins, are not
of a lasting nature. With regard to the company for
which a pattern of dumping was found, the investigation
showed that the company had sold significant quantities
to a new customer at a price that was considerably below
its general export price level. As the company did not
state that it will cease selling to this customer or that it
will adapt its export prices, it can be concluded that the
pattern will
this company made
almost
its capacity during the RIP. Thus,
major changes in the company's sales pattern which
would have an impact on their price levels with
according effects on normal values and export prices
are unlikely to happen.

subsist. Moreover,

full use of

(144) For the third exporting producer Daehan Synthetic Fibres,
it should be recalled that this company did not cooperate
and that the analysis therefore has to be based on facts
available, suggesting that dumping continue. Under these
circumstances this company should be subject to the
residual duty as established in the original investigation
and confirmed in the most recent review.

(149) Regarding the second cooperating company, the changes
observed were not huge, i.e. change in dumping margins
from 3,1 % to 6,5 % due to slightly more pronounced
changes in the normal values than in the export prices.
This circumstance is not likely to change in the future
factor to
because oil prices which are a major cost
produce PET are stabilising at a high level.

Taiwan

(145)

In the present proceeding, only two Taiwanese exporting
producers cooperated. The analysis on the lasting nature
of changed circumstances is therefore limited to these
two companies.

(150) Accordingly, it is considered that the dumping margins
for both companies, calculated on the basis of the data
provided in this investigation are reliable and that the
changes found are deemed to be of a lasting nature.

(1) OJ L 19, 21.1.2005, p. 6, recital 58.

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Official Journal of the European Union

27.2.2007

E. DEFINITION OF THE COMMUNITY INDUSTRY

1. Community production

(151) PET is manufactured in the Community by the following

companies:

erating Community producers represent the Community
industry within the meaning of Articles 4(1) and 5(4) of
the basic Regulation. In the original
investigations, the
Community industry represented more than 85 % of
the total PET production in the Community at that time.

— producers which requested

review,
supported it and cooperated in the investigation
(see recital 154),

expiry

the

— two producers which have requested the expiry
review but have not cooperated in the current inves-
tigation,

— one subsidiary of a Korean producer located in the
Community who has cooperated in the investigation
and has supported the request.

(152) PET produced by all

these companies constitutes the
total Community production within the meaning of
Article 4(1) of the basic Regulation.

2. Community industry

for

the expiry reviews

(153) The Commission examined whether
requesting or

the cooperating
supporting the
Community producers
represented a major
request
proportion of the total Community production of PET.
Those Community producers accounted for 88 % of the
total Community production of PET. Those Community
producers who did not fully cooperate were excluded
the Community industry. The
from the definition of
Commission therefore considered that these fully coop-

(154) The

following twelve Community producers partly
mentioned in recital 16 constitute the Community
industry:

Voridian BV (The Netherlands), M & G Polimeri Italia Spa
(Italy), Equipolymers Srl (Italy), La Seda de Barcelona SA
(Spain), Novapet SA (Spain), Selenis
Industria de
Polimeros SA (Portugal), Aussapol Spa (Italy), Advansa
Ltd (UK), Wellman BV (The Netherlands), Boryszew
subsidiary Elana Wse (Poland), V.P.I. SA (Greece), SK
Eurochem (Poland).

F. SITUATION ON THE COMMUNITY MARKET

1. Consumption in the Community market

(155) Community consumption was established on the basis of
the Community industry, of
the sales volumes of
the other Community
estimates of
producers on the Community market based on data
provided at the complaint stage, and Eurostat data for
all Community imports from third countries.

sales of

the

(156) Between 2002 and the RIP, Community consumption of
the product concerned in the Community continuously
increased to reach a total of 2 400 000 tonnes in the
RIP. The overall increase over the period was 18 %. The
increase was partly due to new applications (beer, wine,
inter alia) and partly due to the increase of consumption
in the countries acceding to the EU in 2004.

Table 1

2002

2003

2004

RIP

Community consumption (tonnes)

2 041 836

2 213 157

2 226 751

2 407 387

Index

100

108

109

118

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2. Imports from the countries concerned

2.1. Cumulation

(157)

investigation,

Indonesia,
In the original
Malaysia, the Republic of Korea, Taiwan and Thailand were assessed cumulatively in accordance
with Article 3(4) of the basic Regulation. It was examined whether a cumulative assessment was
also appropriate in the current investigation.

imports of the product concerned originating in India,

(158) With regard to imports of the two cooperating Korean companies, the investigation has shown either
de minimis or no dumping. Therefore, in accordance with Article 3(4) of the basic Regulation, those
imports concerned could not be cumulatively assessed. However, it was found that the margin of
dumping established in relation to the imports from India, Malaysia and Taiwan was above the de
minimis level. Concerning imports from Indonesia and Thailand, the investigation has shown that the
imports were not representative and therefore no dumping margin could be established. However, it
was also concluded that should measures be allowed to lapse, there is a likelihood of recurrence of
dumping. As regards the quantities exported by each of the six countries concerned it was considered
that if the measures were repealed, imports from each of the countries concerned would be likely to
increase to levels significantly above those reached in the RIP and would certainly exceed the
negligibility threshold. As regards the condition of competition, the investigation has confirmed
that PET chips imported from the countries concerned were alike in all their essential physical
and technical characteristics. Moreover, these chips were interchangeable with those produced in
the Community and they were marketed in the Community during the same period, through
similar
similar commercial conditions. The imported PET chips were
therefore considered to compete with each other and with the PET chips produced in the
Community.

sales channels under

(159)

In the light of the above, it was considered that all the criteria set out in Article 3(4) of the basic
Regulation were met regarding imports from India, Malaysia, Thailand, Indonesia, Taiwan and the
dumped imports from the Republic of Korea. The imports from the six countries concerned were
therefore examined cumulatively with the exception of those non-dumped imports produced by the
two cooperating Korean exporting producers.

2.2. Volume, market share and prices of imports

(160) With respect to the six countries concerned, the import volumes, market shares and average prices
developed as indicated below. The data are based on Eurostat statistics. In these figures, non-dumped
Korean imports should in principle be taken out. For reasons of confidentiality, however, they have
been deliberately included. The development of the trend would be however substantially the same if
the data concerning the non-dumped Korean imports would be taken out.

(161) Between 2002 and the RIP,

i.e. from
192 000 tonnes in 2002 to 167 000 tonnes in the RIP. Compared to the year 2002, they remained
unchanged in 2003 and decreased by 3 % in 2004, and by another 10 % in the RIP.

imports from the countries concerned decreased by 13 %,

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Official Journal of the European Union

27.2.2007

Volume

Index

Market share

Prices (EUR/tonne)

Index

Table 2

2002

2003

2004

RIP

192 192

191 455

186 892

166 982

100

9,4 %

850

100

100

8,6 %

803

94

97

8,4 %

854

100

87

7,0 %

1 030

121

G. ECONOMIC SITUATION OF THE COMMUNITY INDUSTRY

1. Preliminary remarks

(162) At the beginning of the review, sampling of the Community producers was foreseen but considering
that their number was not excessive, it was decided to include all of them and consequently, injury
factors have been assessed on the basis of information collected at the level of the entire Community
industry.

(163) Pursuant to Article 3(5) of the basic Regulation, the Commission examined all relevant economic

factors and indices having a bearing on the state of the Community industry.

2. Analysis of economic indicators

2.1. Production

(164) The Community industry's production increased by 20 % between 2002 and the RIP, i.e. from a level
of 1 465 000 tonnes in 2002 to 1 760 000 tonnes in the RIP. The yearly increase was 4,8 % in
2003 and 4,6 % in 2004. A further increase occurred in the RIP, when production soared by
150 000 tonnes,
i.e. by 10,8 %. This was due to the restructuring process undertaken by the
industry with the aim to better control the production costs and thereby take advantage of the
growing consumption in the Community market which, as stated above, increased by 19 % between
2002 and the RIP (from 2 million tonnes in 2002 to 2,4 million tonnes in the RIP).

Table 3

2002

2003

2004

RIP

Production (tonnes)

1 464 522

1 534 480

1 602 086

1 760 828

Index

100

105

109

120

2.2. Capacity and capacity utilisation

(165) Production capacity increased by 22 % between 2002 and the RIP, i.e. from a level of 1 760 000
tonnes in 2002 to 2 156 000 tonnes in the RIP. The increase occurred mainly in the RIP, when
production capacity, compared to the year 2004, increased by 300 000 tonnes, i.e. 16,7 %. This
significant increase of production capacity was parallel to the increase of production over the same
period (see recital 164). The increase in production capacity resulted from additional investments in
production lines designed to take advantage of the growing market. The capacity utilisation increased
by four percentage points in 2003, remained on this level in 2004 and then decreased in the RIP by
five percentage points to the level of 82 %. The decrease between 2004 and the RIP results from the
significant increase of production capacity in that period. Consequently, a higher production volume
in the RIP, when compared with 2004, coincided with a lower capacity utilisation rate.

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Table 4

2002

2003

2004

RIP

Production capacity (tonnes)

1 760 332

1 762 378

1 848 315

2 156 294

Index

Capacity utilisation

Index

100

83 %

100

100

87 %

105

105

87 %

104

122

82 %

98

2.3. Sales and market share

(166) The volume sold by the Community industry on the Community market increased by 21 % between
2002 and the RIP. A growth of 2 % in 2003 was followed by an increase in both 2004 and the RIP,
by 8 and 11 percentage points respectively. Notwithstanding the increase of sales due to the higher
consumption, the Community industry's market share fell by four percentage points in 2003 to then
gradually rise by five percentage points in 2004 and one percentage point in the RIP.

Table 5

2002

2003

2004

RIP

Sales in the EC (tonnes)

1 306 768

1 333 976

1 438 883

1 586 902

Index

Market share

2.4. Growth

100

64 %

102

60 %

110

65 %

121

66 %

(167) Overall, it has to be noted that the Community industry's market share increased by 2 % in the
period considered, which shows that its growth lagged behind the growth of consumption of the
overall market.

2.5. Employment

(168) The level of employment of the Community industry increased by 18 % in the period considered. The
main increase occurred in 2003 (11 percentage points) and 2004 (further six percentage points).
Although this rising tendency continued in the RIP, the increase amounted to only two percentage
points. This increase of 18 % during the whole period is linked to the production level which
increased by 20 %.

Table 6

2002

1 010

100

2003

1 124

111

2004

1 170

116

RIP

1 190

118

Employees

Index

2.6. Productivity

(169) The Community industry's productivity, measured as the output in tonnes per person employed per
year, had an overall increase during the period considered. Productivity initially fell by 6 % in 2003
compared to the year 2002 and remained at this level in 2004 but productivity in the RIP then
increased significantly by more than 8 % compared to 2004.

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Table 7

2002

1 450

100

2003

1 365

94

2004

1 369

94

RIP

1 480

102

Productivity (tonne/employee)

Index

2.7. Wages

(170)

It has to be noted that PET chips production is a capital intensive industry and that therefore labour
costs have a limited impact on the overall cost of the product. During the period, wages increased by
12 %, compared to a 20 % increase of the overall production cost. Another significant indicator is the
cost of wages spent per tonne produced. During the period, this cost decreased by 6 %.

Wages (EUR million)

Index

Wages per tonne produced (EUR)

Index

Table 8

2002

62,3

100

44,4

100

2003

63,0

101

42,9

96

2004

66,3

106

43,6

98

RIP

69,5

112

41,9

94

2.8. Magnitude of the actual margin of dumping and recovery from the effects of past dumping

(171) As concerns the impact on the Community industry of the magnitude of the actual margin of
dumping, given the volume and the prices of the imports from the countries concerned, this
impact cannot be considered to be negligible.

2.9. Sales prices and factors affecting Community prices

(172) The unit sales prices increased from EUR 924/tonne in 2002 to EUR 1 058/tonne in the RIP. Overall,
the tendency was rising (by 15 % in the whole period). This increase is to a large extent a conse-
quence of the increase in the price of raw materials, which is due to the increase in the oil price.
Although the Community industry had increased prices it was not in the position to pass the increase
on to the downstream sector and fully reflect the increase of raw materials prices in its sales prices.
This was principally due to the fact that the increase in the price of raw materials was higher than the
increase of PET prices. In addition, the Community industry had to face the pressure from imports.
With the aim to maintain its market share, the Community industry could only moderately increase
its prices and thus experienced price suppression.

Weighted average price (EUR/tonne)

Index

Table 9

2002

924

100

2003

902

98

2004

1 006

109

RIP

1 058

115

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2.10. Cost of production of the main raw materials

(173) Bearing in mind that around 850 kg of purified terephthalic acid (PTA) and 350 kg of mono ethylene
glycol (MEG) (the main raw materials) are needed to produce 1 tonne of PET, the costs of raw
materials (PTA and MEG) increased significantly respectively by 67 % and by 31 % between 2002 and
the RIP to reach the level of EUR 770/tonne (PTA) and EUR 721/tonne (MEG) (average of the RIP).
Although a small decline in prices of PTA has been noted in the third quarter of 2005 when the
prices dropped to the level of EUR 700/tonne, and a substantially stable price was observed for MEG,
it has to be pointed out that the raw materials are purchased in advance based on long term
contracts. As a result, for the period considered, despite the small decline in prices of PTA at the
end of the RIP, the Community industry still bears the consequences of the heavily increased costs. In
addition, due to the situation on the world oil market the prices of raw materials for the production
of PET are susceptible of unpredictable changes but they are most likely to remain at a high level. All
these factors contribute to an increased level of vulnerability of the Community PET producers.

— PTA

Index

— MEG

Index

Table 10

2002

460

100

551

100

Average cost (EUR/tonne)

2003

566

123

550

100

2004

718

156

650

118

RIP

770

167

721

131

(174) By comparison, the average unit cost per tonne of PET chips produced by the Community industry

was the following:

Weighted average cost (EUR/tonne)

Index

Table 11

2002

899

100

2003

918

102

2004

1 013

113

RIP

1 092

121

(175) During the period considered, as indicated in tables 10 and 11, the main raw materials have
continuously increased (PTA by 67 %, MEG by 31 %), while the overall cost of production raised
only by 21 %. However, as shown in table 9 prices have only increased by 15 % due to the fact that
the Community industry was not in a position to pass the increase on to the downstream sector and
fully reflect the rise in the price of raw materials in its sales prices.

2.11. Stocks

(176) The evolution of stocks over the whole period considered, i.e. between 2002 and the RIP is down by
10 %. However as in the original investigations, stocks should not be considered as a meaningful
indicator as regards PET produced by the Community industry, given the seasonal nature of the PET
market throughout the year. When compared to the production, stocks represent around 5/6 % of
the output.

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Stocks (tonnes)

Index

Table 12

2002

2003

2004

RIP

101 554

110 695

90 422

91 123

100

109

89

90

2.12. Profitability, return on investments and cash flow

(177) Profitability on sales represents the profit generated by sales of the product concerned in the
Community. Return on total assets and cash flow could only be measured at the level of the
narrowest group of products which included the like product, pursuant to Article 3(8) of the
basic Regulation. Moreover, return on investments has been calculated on the basis of return on
total assets, as return on total assets is considered more relevant for the analysis of the trend.

Pre-tax profit margin on sales in the
Community

Return on total assets

Cash flow (% of total sales)

Table 13

2002

2,7 %

2,0 %

18,1 %

2003

– 1,8 %

– 1,4 %

5,5 %

2004

– 0,7 %

– 0,6 %

10,1 %

RIP

– 3,2 %

– 2,4 %

– 2,6 %

(178) Further to the price suppression starting in 2002 and coinciding with a strong increase of dumped
imports from the countries concerned, the financial situation of the Community industry deteriorated
and turned into losses in 2003. After a small recovery in 2004 due to the measures imposed on PRC
losses increased to – 3,2 % in the RIP. It is therefore noted that there is a clear
and Australia,
downward trend.

(179) The trends for return on total assets and for cash flow developed similarly i.e. showed a relatively
good situation in 2002, a deterioration in 2003, a small recovery in 2004 and a further deterioration
in the RIP.

2.13. Investments and ability to raise capital

Table 14

2002

2003

2004

RIP

Investments (EUR 1 000)

31 779

42 302

63 986

50 397

Index

100

133

201

159

(180) The investments were partly dedicated to an increase of capacity and partly to the improvement of
the production process. The bulk of the expenditure was made in 2004 and during the RIP, coin-
ciding with the increase of the capacity and with the aim to maintain market share in view of the
increased consumption. Nevertheless, the current situation of the Community industry and the
evolution of the Community and world markets for PET marked out by lack of profitability were
not an incentive to make excessive investments. Although in some circumstances Community
producers have been able to raise capital (in particular from related companies), the lack of profit-
ability of PET did not encourage investment and in some cases the decision was postponed.

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Official Journal of the European Union

L 59/25

3. Conclusion on the situation of the Community industry

(181) The constant increase of consumption partly due to new applications (beer, wine inter alia) and partly
due to the increase of consumption in the countries acceding to the EU in 2004, obliged the
Community industry to increase capacity and production in order not to lose market share. To
do so, an important restructuring process accompanied by a frequent change of the ownership of the
different producers, took place in 2004 and during the RIP. In parallel, the number of production
lines was generally increased in order to follow the increase of the consumption and to concurrently
achieve economies of scale. Thus, some economic indicators, i.e. consumption, capacity production,
production, EU sales, employment indeed followed a positive trend.

(182) However, all those restructuring efforts described above could not counterbalance the impact of the
constant and massive increase of raw material prices in the period considered. The higher raw
material costs could not be passed on to the downstream sector to the extent it would have been
necessary to maintain a certain level of profitability. This coincided with the low price level of the
imports from the countries concerned which clearly exerted a significant downward pressure on the
price of the Community industry. Thus, despite the apparent positive developments concerning
production, sales and sales price, the overall financial situation of the Community industry dete-
riorated and is reflected in the negative developments of profitability (from 2,7 % profit in 2002 to
3,2 % losses in the RIP), of export sales, production cost, return on investments and cash flow.

(183) Consequently, despite some apparent positive trends showed by the injury indicators, the situation of
the Community industry is still far from the levels that could be expected had it fully recovered from
the injury found in the original investigations.

(184)

It is therefore concluded that the situation of the Community industry has slightly improved, as
compared to the period preceding the imposition of measures, but is still very fragile and vulnerable.
Furthermore, the price pressure from imports did not allow the Community industry to fully reflect
the increase of raw materials prices in its sales prices.

4. Imports from other countries

4.1. Other countries concerned by anti-dumping measures

(185) As mentioned in recital 2, it is recalled that, since August 2004, there have also been definitive anti-

dumping measures in force on imports of PET originating in Australia and the PRC.

(186) During the period considered, the total volume of imports from these countries increased by 12 %
(from 65 000 tonnes to 73 000 tonnes). Although there was a significant increase in the market
share (by four percentage points) in the year 2003, this rising tendency was reversed in 2004 when
the market share of imports decreased to the level of 2,4 %. In the RIP a slight increase of 0,6 %
stemming from Chinese imports has been noted. The effect of the definitive anti-dumping duties is
reflected as from 2004. Whereas imports from Australia ceased completely, the volume of imports
from China increased steadily by 130 % in 2003, decreased in 2004 in coincidence with the
measures and increased again by 47 % during the RIP. Australian prices decreased by 7 % in 2003
and by another 6 % in 2004. Chinese prices increased slowly in 2003 and 2004 and by 24 % in the
RIP, i.e. from EUR 827 to EUR 1 022 per tonne. As a conclusion it is noted that significant imports
from these two countries were made at prices constantly lower than the Community prices, thus
contributing to the injury suffered by the Community industry.

L 59/26

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Official Journal of the European Union

27.2.2007

Australia

Volume (tonnes)

Price (EUR/tonne)

Market share

People's Republic of China

Volume (tonnes)

Price (EUR/tonne)

Market share

Total tonnes

Table 15

2002

2003

2004

RIP

17 179

18 727

851

0,8 %

789

0,8 %

2 842

741

0,1 %

—

—

—

47 875

131 343

49 678

72 814

804

2,3 %

806

5,9 %

827

2,2 %

1 022

3 %

65 054

150 070

52 520

72 814

Total market share

3,1 %

6,8 %

2,4 %

3 %

4.2. Other third countries not mentioned above

(187)

In these figures, non-dumped Korean imports should in principle be included. For reasons of
confidentiality they have been deliberately taken out. However the development of
the trend
would be substantially the same if the Korean non-dumped imports were to be included.

(188) Between 2002 and the RIP, total imports of PET originating in other countries have increased by
136 %, to reach 174 000 tonnes. Their market share in the EU increased from 3,6 to 7,1 % in the
period considered. The table below illustrates these trends.

Total volume (tonnes) of which:

Pakistan

USA

Mexico

Turkey

Others

Market share

Table 16

2002

2003

2004

RIP

73 549

28 558

20 570

1 476

7 208

15 737

3,6 %

119 973

182 687

173 597

83 208

16 105

20

17 001

3 639

5,4 %

55 125

49 763

32 112

24 032

21 655

8,2 %

73 426

50 393

20 501

15 374

13 903

7,1 %

(189)

Imports from Pakistan rose by 157 % over the period considered, and in particular after the termi-
nation of the proceeding against them in 2004. Imports from the United States increased consid-
erably, i.e. by 144 % to reach 50 000 tonnes in the RIP. Imports from Mexico passed from 1 500
tonnes in 2002 to 20 000 tonnes in the RIP, an increase of 1 390 %. As far as Turkey is concerned,
its imports were rising significantly between 2002 and 2004 (by 244 %), to then decrease in the RIP
by 36 %. Regarding the prices it is important to note, however, that the prices of the imports from
the United States, Mexico and Turkey increased and were higher than prices of other imports and of
those of the Community industry. Moreover, most likely, imports from USA are Pet G, a special
variety of PET having higher viscosity requirements and sold on average at 50 % more than normal
PET. Imports prices for Pakistan were lower than the average prices of the Community industry from
2002 to 2004. During the RIP, import prices from Pakistan increased at the level of the Community
industry. Therefore,
the
Community market.

these imports could not affect

is considered that

the situation of

it

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5. Export Activity of the Community Industry

(190) The export activity of

the Community industry showed a downward trend during the period
considered,
i.e. decreasing from 7,9 % to 4,9 % of the Community industry's total sales. Only in
2003, the Community industry's export performance increased considerably, probably due to low EU
sales prices. However, during the RIP, they represent less than 5 % of the total sales. It should be
noted that export prices were constantly above EC sales price.

Table 17

2002

2003

2004

RIP

Export sales (tonnes)

111 381

141 627

97 686

82 388

Index

% of total sales

Price per tonne

Index

100

7,9 %

959

100

127

9,6 %

942

98

87

6,3 %

1 026

107

74

4,9 %

1 096

114

H. CONCLUSION ON THE LIKELIHOOD OF CONTI-
NUATION OR RECURRENCE OF INJURY

(191) As concluded previously,

Indonesia, Thailand,

India,
Taiwan and Malaysia have the potential
their export volumes to the Community market.

the exporting producers in
the Republic of Korea,
to increase

than the prices of

(192) The cif export prices of PET originating in India, Thailand
and Malaysia were higher
the
Community industry. The difference, however, was not
significant which leads to the conclusion that
in the
absence of anti-dumping duties these countries could
an even stronger price pressure on the
exercise
Community industry. Moreover,
the prices of Korean,
Taiwanese and Indonesian imports into the Community
were lower than the Community price. The difference
was small for the Republic of Korea and Taiwan (3 to
4 %) and significant in the case of Indonesia (amounting
to 27 %). Therefore there is a clear indication for a like-
lihood of continuation or recurrence of injury.

(193) As indicated above,

the situation of

the Community
industry has also been considerably affected by the
imports from the PRC. The prices of
those imports
were below the Community price (EUR 1 022/tonne as
compared to 1 058 in the Community). In addition, in
terms of volume, the imports from the PRC amounted to
73 000 tonnes, representing a market share of 3 % in the
RIP.

(194) Furthermore, in terms of volumes of imports from the
it can be concluded that there is
significantly

countries concerned,
likelihood

quantities will

those

that

increase due to the overall production capacity and
spare capacity available in the countries concerned as
further detailed in recital 199.

(195) On the basis of the foregoing, it is concluded that the
likely be lower on the
import prices would most
Community market
in the absence of anti-dumping
measures, as the producers in these countries would
possibly try to regain lost market shares or to increase
shares. Such price behaviour,
their
coupled with the ability of the exporting producers in
these countries to sell significant quantities of PET on the
Community market, would in all
likelihood have the
reinforcing the price pressure, with an
effect of
expected further negative impact on the situation of
the Community industry.

current market

(196)

significant

concerned a

In this context, it should be recalled that in all the six
countries
spare production
capacity was established, ranging from 37 000 tonnes
in Malaysia to 400 000 tonnes in Taiwan, and totalling
i.e. 45 % of the Community
around 1 million tonnes,
industry production capacity.
In addition the import
prices oscillated in the period concerned slightly above
or below Community prices. The prices of imports origi-
nating in Taiwan, for example, a country with by far the
highest spare production capacity, fell during the period
when anti-dumping measures were in force below the
level of Community prices. Furthermore, the prevailing
price level in the Community makes the EU an attractive
it can be concluded that should the
market. Thus,
measures be allowed to lapse,
there exists a strong
incentive for producers in the countries concerned to
redirect their sales to the EU market at low prices.

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(197) Moreover, recent publicly available information indicates
that unusual quantities of PET chips have been purchased
by operators in Bulgaria and Romania from the Asian
countries under review. The shipments were due to take
place in November and December 2006. This infor-
mation is an indication of the likelihood of recurrence
of injury to the Community industry, as it clearly demon-
strates that significantly more imports from the countries
concerned would be present on the Community market
in the absence of anti-dumping measures.

(198) As

industry has

shown above,

although the
slightly

the
situation of
Community
improved when
compared to the one before the imposition of anti-
dumping measures, it remains vulnerable and fragile. It
is likely that if the Community industry was exposed to
increased volumes of
countries
imports
concerned at dumped prices, this would result in a dete-
rioration of its financial situation and most probably in
the further
is
the measures
therefore concluded that
the Republic of
against
Korea, Taiwan and Malaysia would in all
likelihood
result
injury to the Community
industry.

loss of profitability. On this basis,

in the recurrence of

Indonesia, Thailand,

the repeal of

from the

India,

it

I. COMMUNITY INTEREST

1. Introduction

(199) According to Article 21 of the basic Regulation, it was
examined whether the maintenance of the existing anti-
dumping measures would be against the interest of the
Community as a whole. The determination of
the
Community interest was based on an appreciation of
all the various interests involved. The present investi-
gation analyses a situation in which anti-dumping
measures have already been in place and allows for
assessment of any undue negative
impact on the
parties concerned due to the current anti-dumping
measures.

(200) On this basis,

it was examined whether, despite the
conclusions on the likelihood of a continuation or
recurrence of
injurious dumping, compelling reasons
existed which would lead to the conclusion that it is
not in the Community interest to maintain measures in
this particular case.

2. Interest of the Community industry

(201) As outlined above,

there

likelihood of
recurrence of injurious dumping if measures were to be
repealed. All Community producers but two fully coop-
the ongoing
erated and indicated their

is a clear

support

for

measures. One Community producer linked to one of
the Korean exporters has also expressed support for the
measures.
its
It has to be considered, however,
mother company is exporting at 0 % duty.

that

(202) The continuation of anti-dumping measures on imports
from countries concerned would enhance the possibility
for the Community industry to reach a reasonable level
of profitability. More importantly, it will avoid that the
Community industry is pushed out of the market. Indeed,
there is a clear
injurious dumping in
substantial volumes which the Community industry
could not withstand. The Community industry would
therefore continue to benefit from the maintenance of
the current anti-dumping measures, in particular as there
are now also measures against imports originating in
Australia and the PRC.

likelihood of

3. Interest of importers

supplied data and the bulk of

(203) The Commission sent questionnaires to 18 importers/
traders of the product concerned. However, cooperation
from the importers/traders that are purchasing mainly
from the countries concerned and representing around
5 % of the EU consumption was very low. Only one
importer/trader
its
purchases were made from the Community industry.
Only marginal quantities were
countries
concerned or
from other exporting countries. This
importer/trader would prefer a market with zero duties
although they are currently enjoying healthy financial
results. Bearing in mind that the measures in force did
not considerably affect importers,
it is concluded that
maintaining the existing anti-dumping measures against
imports originating
Indonesia, Thailand,
in India,
Malaysia, the Republic of Korea and Taiwan would not
have a significant negative effect on the situation of the
importers in the Community.

from the

4. Interest of converters/users

(204) The Commission sent questionnaires

to 47 known
converters/users. Only 10 converters/users with an
overall low representativity replied to the questionnaire.

(205) According to the information on purchases supplied in
their responses to the questionnaire, cooperating conver-
ters/users during the RIP represent about 20 % of total
Community consumption of PET. They purchased during
the RIP 95 % of their PET from Community producers
and the remainder from imports originating in countries
other than those subject to these reviews. A number of
arguments
imposition of duties were
presented.

against

the

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(206) Five converters (transforming PET chips in pre-forms and
bottle grade and representing 10 % of the consumption)
replied to the questionnaire. The cost of PET chips
accounts for 55 % of their final product (mostly pre-
forms). It has been established that they import negligible
quantities from the countries concerned and other third
countries. Nevertheless they oppose the imposition of
duties claiming that the prolongation of the measures
could have the effect of artificially raising the prices in
Europe.

(207) Five users accounting for about 10 % of the consumption
supplied rather incomplete data. The low level of coop-
eration from the big users is likely to be due to the fact
that the last investigation concerning imports from PRC,
Australia and Pakistan took place only two years ago.
PET costs account for around 6/7 % of the overall cost
and are therefore rather limited. Although they have
declared no imports
from the countries concerned,
similarly as the converters, they oppose the imposition
of duties claiming that the measures could have the effect
of artificially raising the prices in Europe.

(208) Considering the rather good financial situation of the
downstream industry,
the
in contrast
Community industry, no converter/user put forward the
argument that maintaining the current duties could lead
to a loss of jobs or to moving manufacturing facilities
overseas.

to the one of

(209) Furthermore,

in terms of output,
size

the Community
increased
industry adapted its
the
consumption and therefore it
unused capacity of the Community industry could fully
cover the amount of the imports.

is very likely that

to match the

(210) Bearing in mind that there are still alternative sources of
i.e. Mexico,
supply with no anti-dumping measures,
Iran, Saudi Arabia the
Turkey, USA, Brazil, Pakistan,
Community users would moreover be able to rely on
(or to switch to) diversified suppliers of
the product
concerned.

(212) On the basis of the above,

existing anti-dumping measures

it is concluded that main-
against
taining the
imports originating
Indonesia, Thailand,
in India,
Malaysia, the Republic of Korea and Taiwan would not
have a significant negative effect on the situation of the
users in the Community.

5. Interest of suppliers

(213) The suppliers of raw material

(mono ethylene glycol
(MEG)) and purified terephthalic acid (PTA), DMT and
isophthalic acid (IPA), all petrochemical products deri-
vatives of naphtha, clearly indicated their support for
the measures. They would benefit
that
the Community industry would very likely be able to
recover from the effects of dumping and thus improve
their performance.

from the fact

6. Conclusion on Community interest

(214) Taking into account all of the factors outlined above, it is
concluded that there are no compelling reasons against
the maintenance of the current anti-dumping measures.

J. RELATION BETWEEN ANTI-DUMPING AND COUN-
TERVAILING MEASURES

the application of

(215) For one export country, namely India, a parallel investi-
gation on the expiry of countervailing measures has been
carried out (see recital 10). This investigation confirmed
such
the necessity to continue
measures at unchanged levels. The present investigation
also concluded that anti-dumping measures on exports
from India should be kept in force at unchanged levels.
In that respect, reference is made to recital 125 of Regu-
lation (EC) No 2604/2000. As the measures currently
remain
proposed for
unchanged,
the basic
it
anti-dumping Regulation and Article 24(1) of Council
Regulation (EC) No 2026/97 are complied with.

exports of PET from India
follows that Article 14(1) of

K. FINAL PROVISIONS

shown that

(211) As concerns the performance of the user industry, the
period
investigation has
their
considered,
turnover, maintained employment
stable and rather
improved their overall profitability. Therefore it was
found that
they were not negatively affected by the
anti-dumping measures.

the
increased

cooperating

during

users

the

(216) All parties were informed of

the essential

facts and
considerations on the basis of which it was intended to
the existing measures be maintained
recommend that
respectively their levels be amended where warranted.
They were also granted a period to submit comments
and claims subsequent to disclosure. In particular one
Indian exporter alleged that in the absence of measures
India will re-direct sales to the
it

likely that

is not

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Official Journal of the European Union

27.2.2007

exporter

claimed that

emerging
Community. This
markets are more attractive than the Community, that
Indian demand is growing fast and that, therefore, no
spare capacity is available. It is however to be considered
that, notwithstanding an increase of the demand in the
Indian market,
company level
indicated spare capacities,
in excess of the increase in
demand on the Indian market, as also confirmed by
the market intelligence report mentioned at recital 74.
the disclosure
It
comments received were such as to alter the conclusions
as contained in this regulation.

is therefore concluded that none of

investigation at

the

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
imports of polyethylene
terephthalate having a viscosity
number of 78 ml/g or higher, according to the ISO Standard
1628-5, falling within CN code 3907 60 20 and originating in
India, Indonesia, Malaysia, the Republic of Korea, Taiwan and
Thailand.

(217)

It follows from the above that the anti-dumping duties
are maintained respectively,
their levels are amended
where warranted,

2.
Except as provided for in Article 2, the rate of the anti-
dumping duty applicable to the net, free-at-Community frontier
price, before duty for products manufactured by the companies
listed below shall be as follows:

Country

Company

Anti-dumping duty
(EUR/tonne)

TARIC
additional code

India

India

India

India

India

India

Indonesia

Indonesia

Indonesia

Indonesia

Malaysia

Malaysia

Malaysia

Pearl Engineering Polymers Ltd

Reliance Industries Ltd

SENPET Ltd

Futura Polyesters Ltd

South Asian Petrochem Ltd

All other companies

P.T. Mitsubishi Chemical Indonesia

P.T. Indorama Synthetics Tbk

P.T. Polypet Karyapersada

All other companies

Hualon Corp. (M) Sdn. Bhd.

MpI Polyester Industries Sdn. Bhd.

All other companies

Republic of Korea

SK Chemicals Group:

SK Chemicals Co. Ltd

Huvis Corp.

Republic of Korea

KP Chemicals Group:

Honam Petrochemicals Corp.

KP Chemicals Corp.

Republic of Korea

All other companies

Taiwan

Taiwan

Taiwan

Thailand

Thailand

Thailand

Far Eastern Textile Ltd

Shinkong Synthetic Fibers Corp.

All other companies

Thai Shingkong Industry Corp. Ltd

Indo Pet (Thailand) Ltd

All other companies

130,8

181,7

200,9

161,2

88,9

181,7

187,7

92,1

178,9

187,7

36,0

160,1

160,1

0

0

0

0

148,3

36,3

67,0

143,4

83,2

83,2

83,2

A182

A181

A183

A184

A585

A999

A191

A192

A193

A999

A186

A185

A999

A196

A196

A195

A195

A999

A808

A809

A999

A190

A468

A999

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Official Journal of the European Union

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In cases where goods have been damaged before entry into free circulation and, therefore, the price
3.
actually paid or payable is apportioned for the determination of the customs value pursuant to Article 145
of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implemen-
tation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (1), the amount
of anti-dumping duty, calculated on the basis of the amounts set above, shall be reduced by a percentage
which corresponds to the apportioning of the price actually paid or payable.

Notwithstanding paragraphs 1 and 2, the definitive anti-dumping duty shall not apply to imports

4.
released for free circulation in accordance with Article 2.

5.

Unless otherwise specified, the provisions in force concerning customs duties shall apply.

Article 2

Imports shall be exempt from the anti-dumping duties imposed by Article 1 provided that they are
1.
invoiced and shipped) to a company acting as an importer in the
produced and directly exported (i.e.
Community by the companies mentioned in paragraph 3, declared under the appropriate TARIC additional
code and that the conditions set out in paragraph 2 are met.

2. When the request for release for free circulation is presented, exemption from the duties shall be
conditional upon presentation to the customs service of the Member State concerned of a valid ‘Undertaking
Invoice’ issued by the exporting companies mentioned in paragraph 3, containing the essential elements
listed in the Annex. Exemption from the duty shall further be conditional on the goods declared and
presented to customs corresponding precisely to the description on the Undertaking Invoice.

Imports accompanied by an Undertaking Invoice shall be declared under the following TARIC

3.
additional codes:

Country

Company

TARIC additional code

India

India

India

India

Pearl Engineering Polymers Ltd

Reliance Industries Ltd

Futura Polyesters Ltd

South Asian Petrochem Ltd

Indonesia

P.T. Polypet Karyapersada

A182

A181

A184

A585

A193

Article 3

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

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Commission Regulation (EC) No 1875/2006 (OJ L 360,

19.12.2006, p. 64).

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

Done at Brussels, 22 February 2007.

For the Council
The President

F. MÜNTEFERING

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L 59/33

ANNEX

Elements to be indicated in the Undertaking Invoice referred to in Article 2(2):

1. The Undertaking Invoice number.

2. The TARIC additional code under which the goods on the invoice may be customs-cleared at Community borders (as

specified in the Regulation).

3. The exact description of the goods, including:

— the product reporting code number (PRC) (as established in the undertaking offered by the producing exporter in

question),
— CN code,
— quantity (to be given in units).

4. The description of the terms of the sale, including:

— price per unit,
— the applicable payment terms,
— the applicable delivery terms,
— total discounts and rebates.

5. Name of the company acting as an importer to which the invoice is issued directly by the company.

6. The name of the official of the company that has issued the undertaking invoice and the following signed declaration:
‘I, the undersigned, certify that the sale for direct export to the European Community of the goods covered by this
invoice is being made within the scope and under the terms of the undertaking offered by … (name of company), and
accepted by the European Commission through Decision 2000/745/EC. I declare that the information provided in this
invoice is complete and correct.’