Notice of initiation of a partial interim review of the countervailing measures applicable to imports of polyethylene terephthalate (PET) originating in India
Date: 2007-09-27
Institutions: European Commission
Subjects: India, countervailing charge, export subsidy, import, originating product, plastics

C 227/16

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Official Journal of the European Union

27.9.2007

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON
COMMERCIAL POLICY

COMMISSION

Notice of initiation of a partial interim review of the countervailing measures applicable to imports
of polyethylene terephthalate (PET) originating in India

(2007/C 227/05)

The Commission has decided on its own initiative to initiate a
partial interim review limited to the level of subsidization for
certain Indian exporting producers pursuant to Article 19 of
Council Regulation (EC) No 2026/97 on protection against
subsidised imports
the
European Community (‘the basic Regulation’) (1).

from countries not members of

fully or partly on benefits obtained from one or both of the
aforesaid two schemes in the investigation period used in the
investigation that led to the determination of the level of the
existing measures.

1. Product

The product under review is polyethylene terephthalate with a
coefficient of viscosity of 78 ml/g or higher, according to ISO
Standard 1628-5, originating in India (‘the product concerned’),
currently classifiable within CN code 3907 60 20. This CN code
is given only for information.

2. Existing measures

The measures currently in force are a definitive countervailing
duty imposed by Council Regulation (EC) No 193/2007 (2) on
imports of polyethylene terephthalate (PET) originating in India.

3. Grounds for the review

There is sufficient prima facie evidence available to the Commis-
sion, that the circumstances with regard to subsidisation on the
basis of which measures were established have changed and that
these changes are of a lasting nature.

Indeed, the benefits from two subsidy schemes (the Duty Entitle-
ment Passbook Scheme (‘DEPBS’) and the Income Tax Exemp-
tion under Section 80 HHC of the Income Tax Act (‘ITES’))
appear to have significantly decreased. This is due to the modifi-
cation of the relevant basic Indian laws on which these schemes
are based.

This indicates that the measures mentioned in the preceding
paragraph on imports of the product under review at their
present level may no longer be necessary to counteract the
should be
current
reviewed for the companies in question.

subsidisation. Therefore,

the measures

These companies include those listed in the Annex and any other
producer of the product under review that makes itself known
to the Commission within the deadline set in point 5(b)(i) below
and demonstrates within the same time limit that (1) it enjoyed
benefits from one or both of the two schemes mentioned above
during the investigation period used in the investigation that led
to the determination of the level of the measure to which they
are subject (1 October 1998-30 September 1999), and that (2)
given the structural changes in these schemes as mentioned
above, the benefit accruing from these schemes has decreased.

in point 5(a)(i) below that exporters of

In addition, if the review investigation show or any interested
party provides sufficient prima facie evidence within the deadline
set
the product
concerned that are concerned by the current review are bene-
fiting from subsidy schemes other than those mentioned above,
an investigation of these schemes may also be made within the
framework of the current review.

As a consequence, the level of subsidisation is likely to have
decreased for those companies whose measures are based either

(1) OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Council

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

(2) OJ L 59, 27.2.2007, p. 34.

Insofar as the modified subsidy margins resulting from the
current investigation could have an impact on the measures
applicable for cooperating companies in the investigation that
set the level of the measures and/or on the residual measure
applicable for all other companies, these rates may be revised
accordingly.

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should be noted that,

It
those companies who are
for
subject to both anti-dumping and countervailing measures, the
anti-dumping measure may be adjusted accordingly should there
be a change in the countervailing measure.

4. Procedure

Having determined, after consulting the Advisory Committee,
that sufficient evidence exists to justify the initiation of an ex
officio partial interim review, the Commission hereby initiates a
review in accordance with Article 19 of the basic Regulation.

The investigation will assess the need for the continuation,
removal or amendment of the existing measures in respect of
those companies having benefited from one or both subsidy
schemes mentioned above and, for those companies, in respect
of other schemes where sufficient evidence is provided as
mentioned in point 3, paragraph 6 above. The investigation will
also assess the need, depending on the findings of the current
investigation, to revise the measures applicable to other compa-
nies that cooperated in the investigation that set the level of the
existing measures and/or the residual measure applicable for all
other companies.

(a) Sampling

In view of the apparent number of parties involved in this
proceeding, the Commission may decide to apply sampling,
in accordance with Article 27 of the basic Regulation.

(i) Sampling for expor ters/producers

In order to enable the Commission to decide whether
sampling is necessary and, if so, to select a sample, all
exporters producers, or representatives acting on their
behalf, are hereby requested to make themselves known
by contacting the Commission and providing the
following information on their company or companies
within the time limit set in point 5(b)(i) and in the
formats indicated in point 6:

— name, address, e-mail address, telephone, and fax

numbers and contact person,

— the turnover in local currency and the volume in
tonnes of the product concerned sold for export to
the Community during the period 1 April 2006 to
31 March 2007,

— the turnover in local currency and the sales volume
in tonnes of
the product concerned sold on the
domestic market during the period 1 April 2006 to
31 March 2007,

— whether the company intends to claim an individual
subsidy rate (individual subsidy rates can only be
claimed by producers) (1),

(1) Individual margins may be claimed pursuant to Article 27(3) of the

basic Regulation for companies not included in the sample.

— the precise activities of the company with regard to
the production of the product concerned and the
production volume
the product
concerned, the production capacity and the invest-
ments in production capacity during the period
1 April 2006 to 31 March 2007,

in tonnes of

— the names and the precise activities of all related
involved in the production and/or
the product

companies (2)
selling (export and/or domestic) of
concerned,

in

the

— whether the company received benefits under the
DEPBS and/or the ITES in (i) the investigation period
used
the
determination of the level of the measure to which it
is currently subject (1 October 1998-30 September
1999) and/or (ii)
in the period 1 April 2006 to
31 March 2007,

investigation

that

led

to

— any other relevant information that would assist the

Commission in the selection of the sample,

— by providing the above information, the company
agrees to its possible inclusion in the sample. If the
company is chosen to be part of the sample, this
will imply replying to a questionnaire and accepting
an on-the-spot investigation of its response. If the
company indicates that
it does not agree to its
possible inclusion in the sample, it will be deemed
to not have co-operated in the investigation. The
consequences of non-cooperation are set out
in
point 7 below.

In order to obtain the information it deems necessary
for the selection of the sample of exporters/producers,
the Commission will, in addition, contact the authorities
of the exporting country, and any known associations of
exporters/producers.

(ii) Final selection of the sample

All
interested parties wishing to submit any relevant
information regarding the selection of the sample must
do so within the time limit set in point 5(b)(ii).

The Commission intends to make the final selection of
the sample after having consulted the parties concerned
that have expressed their willingness to be included in
the sample.

Companies included in the sample must reply to a ques-
tionnaire within the time limit set in point 5 (b)(iii) and
must co-operate within the framework of the investiga-
tion.

(2) For guidance on the meaning of related companies, please refer to
Article 143 of Commission Regulation (EEC) No 2454/93 laying
down provisions for the implementation of Council Regulation (EEC)
No 2913/92 establishing the Community Customs Code (OJ L 253,
11.10.1993, p. 1).

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Official Journal of the European Union

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sufficient

forthcoming,

co-operation is not

If
the
Commission may base its findings, in accordance with
Articles 27(4) and 28 of the basic Regulation, on the
facts available. A finding based on facts available may be
less advantageous to the party concerned, as explained
in point 7.

(b) Questionnaires

In order to obtain the information it deems necessary for its
investigation, the Commission will send questionnaires to
the sampled companies and to the authorities of
the
exporting country concerned.

(c) Collection of information and holding of hearings

All interested parties are hereby invited to make their views
known, submit information other than questionnaire replies
and to provide supporting evidence. This information and
supporting evidence must reach the Commission within the
time limit set in point 5(a)(i).

Furthermore, the Commission may hear interested parties,
provided that they make a request showing that there are
particular reasons why they should be heard. This request
must be made within the time limit set in point 5(a)(ii).

5. Time limits

(a) General time limits

(i) For par ties

to make

to
submit questionnaire replies and any other
infor mation

themselves known,

All interested parties, if their representations are to be
taken into account during the investigation, must make
themselves known by contacting the Commission,
present their views and submit questionnaire replies, in
the exporting country
particular
the authorities of
concerned, or any other information,
including that
mentioned in point 3 sixth paragraph, within 40 days of
the date of publication of
this notice in the Official
Journal of the European Union, unless otherwise specified.
Attention is drawn to the fact that the exercise of most
procedural
in the basic Regulation
depends on the party's making itself known within the
aforementioned period.

set out

rights

(ii) Hear ings

All interested parties may also apply to be heard by the
Commission within the same 40-day time limit.

(b) Specific time limit in respect of sampling

(i) The information specified in point 4(a)(i) should reach
the Commission within 15 days of the date of publica-
tion of this notice in the Official Journal of the European
Union, given that the Commission intends to consult
parties concerned that have expressed their willingness
to be included in the sample on its final selection
within a period of 21 days of the publication of this
notice.

(ii) All other information relevant for the selection of the
sample as referred to in point 4(a)(ii) must reach the
Commission within a period of 21 days of the publica-
tion of this notice in the Official Journal of the European
Union.

(iii) The questionnaire replies from sampled parties must
reach the Commission within 37 days from the date of
the notification of their inclusion in the sample.

6. Written submissions, questionnaire replies and cor-

respondence

All submissions and requests made by interested parties must be
made in writing (not in electronic format, unless otherwise
specified) and must indicate the name, address, e-mail address,
telephone and fax numbers of the interested party. All written
submissions, including the information requested in this notice,
questionnaire replies and correspondence provided by interested
parties on a confidential basis shall be labelled as ‘Limited’ (1)
and, in accordance with Article 29(2) of the basic Regulation,
shall be accompanied by a non-confidential version, which will
be labelled ‘FOR INSPECTION BY INTERESTED PARTIES’.

Commission address for correspondence:

European Commission
Directorate General for Trade
Directorate H
Office: J-79 4/23
B-1049 Brussels
Fax (32-2) 295 65 05

7. Non-co-operation

In cases in which any interested party refuses access to or does
not provide the necessary information within the time limits, or
significantly impedes the investigation, findings, affirmative or
negative, may be made in accordance with Article 28 of the
basic Regulation, on the basis of the facts available.

(1) This means that the document is for internal use only. It is protected
pursuant to Article 4 of Regulation (EC) No 1049/2001 of the
European Parliament and of the Council regarding public access to
European Parliament, Council and Commission documents (OJ L 145,
31.5.2001, p. 43). It is a confidential document pursuant to Article 29
of the basic Regulation and Article 12 of the WTO Agreement on
Subsidies and Countervailing Measures.

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Where it is found that any interested party has supplied false or
misleading information, the information shall be disregarded
and use may be made,
in accordance with Article 28 of the
basic Regulation, of the facts available. If an interested party
does not cooperate or cooperates only partially, and use of facts
available is made, the result may be less favourable to that party
than if it had cooperated.

9. Other interim reviews under Article 19 of the basic

Regulation

The scope of the current review is as set out in point 4 above.
Any party wishing to claim a review on the basis of other
grounds may do so in accordance with the provisions of
Article 19 of the basic Regulation.

8. Schedule of the investigation

The investigation shall be concluded, according to Article 22(1)
of the basic Regulation, within 15 months of the date of the
publication of this notice in the Official Journal of the European
Union.

10. Processing of personal data

Please note that any personal data collected in this investigation
will be treated in accordance with Regulation (EC) No 45/2001
of the European Parliament and of the Council on the protec-
tion of individuals with regard to the processing of personal
data by the Community institutions and bodies and on the free
movement of such data (1).

ANNEX

— Pearl Engineering Polymers Ltd

— Reliance industries Ltd

(1) OJ L 8, 12.1.2001, p. 1.