Proposal for a Council Regulation amending Council Regulation (EC) No 1425/2006 imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags originating in the People's Republic of China and Thailand, and terminating the proceeding on imports of certain plastic sacks and bags originating in Malaysia
Date: 2007-10-23
Institutions: European Commission
Subjects: China, Malaysia, Thailand, anti-dumping duty, anti-dumping legislation, import, originating product, packaging product, plastics

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.10.2007 
COM(2007) 634 final 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 1425/2006 imposing a definitive anti-dumping 
duty on imports of certain plastic sacks and bags originating in the People's Republic of 
China and Thailand, and terminating the proceeding on imports of certain plastic sacks 
and bags originating in Malaysia 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

110 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/961  on 
protection  against  dumped  imports  from  countries  not  members  of  the  European 
Community  as  last  amended  by  Council  Regulation  (EC)  No  2117/20052  (‘the  basic 
Regulation’)  in  the  proceeding  concerning  imports  of  certain  plastic  sacks  and  bags 
originating in the People's Republic of China (PRC) and Thailand. 

120 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

139 

•  Existing provisions in the area of the proposal 

Council Regulation (EC) No 1425/20063, imposing a definitive anti-dumping duty on 
imports  into  the  Community  of  certain  plastic  sacks  and  bags  originating  in  the 
People's  Republic  of  China  (PRC)  and  Thailand,  and  terminating  the  proceeding  on 
imports of certain plastic sacks and bags originating in Malaysia. 

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

141 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

219 

229 

230 

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2 
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The  applicants  who  co-operated  and  the  Community  industry  have  been  informed  of 
the  findings  of  the  examination  and  have  had  the  opportunity  to  submit  their 
comments. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

OJ L 56, 6.3.1996, p. 1. 
OJ L 340, 23.11.2005, p. 17. 
OJ L 270, 29.09.2006, p. 4 

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

The  basic  Regulation  does  not  make  provision  for  a  general  impact  assessment  but 
contains an exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

305 

•  Summary of the proposed action 

By Regulation (EC) No 1425/2006 the Council imposed a definitive anti-dumping duty 
on  imports  into  the  Community  of  certain  plastic  sacks  and  bags  originating  in  the 
People's  Republic  of  China  (PRC)  and  Thailand,  and  terminated  the  proceeding  on 
imports of certain plastic sacks and bags originating in Malaysia.  

During the original investigation, given the large number of exporters/producers of the 
product  concerned  in  the  PRC  and  Thailand,  a  sample  of  exporting  producers  was 
chosen.  Individual  duty  rates  ranging  from  4,8%  to  14,3%  were  imposed  on  the 
companies selected in the sample, while other co-operating companies not included in 
the  sample  were  attributed  a  duty  rate  of  8,4%  for  the  PRC  and  7,9%  for  Thailand. 
Duty rates of 28,8% for the PRC and 14,3% for Thailand were imposed on companies 
which either did not make themselves known or did not co-operate in the investigation. 

Article 2 of Council Regulation (EC) No 1425/2006 gave the possibility to Chinese and 
Thai  exporting  producers  which  met  the  criteria  set  out  in  the  same  Article  to  be 
granted  the  same  status  as  the  co-operating  companies  not  included  in  the  sample 
(‘newcomer status’). 

One  Thai  company  which  has  requested  new  exporting  producer  status  provided 
sufficient  evidence  that  it  fulfils  the  criteria  set  out  in  Art.  2  of  Council  Regulation 
(EC)  No  1425/2006  and  therefore  its  name  should  be  added  to  the  list  of  companies 
subject to the weighted average duty of 7,9% for Thai companies. 

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

Moreover  it  was  brought  to  the  attention  of  the  Commission  services  that  the 
terminology  'thickness  of  a  bag'  could  cause  confusion  during  the  customs  clearing 
process. It is therefore proposed to use the 'newcomer' regulation in order to clarify this 
issue. 

•  Finally it is proposed to take the opportunity of the 'newcomer' regulation to correct 
an incorrect reference in Article 2 of the Council Regulation (EC) No 1425/2006. 

310 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community  as  last 
amended by Council Regulation (EC) No 2117/2005 of 21 December 2005.  

329 

•  Subsidiarity principle 

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The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

Council  Regulation  (EC)  No  1425/2006  of  25  September  2006  imposing  a  definitive 
anti-dumping duty and collecting definitively the provisional duty imposed on imports 
of certain plastic sacks and bags originating in the PRC and Thailand, and terminating 
the  proceeding  on  imports  of  certain  plastic  sacks  and  bags  originating  in  Malaysia, 
leaves no scope for national decision. 

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

•  Choice of instruments 

Proposed instruments: regulation. 

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

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

331 

332 

341 

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4)  BUDGETARY IMPLICATION 

409 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 1425/2006 imposing a definitive anti-dumping 
duty on imports of certain plastic sacks and bags originating in the People's Republic of 
China and Thailand, and terminating the proceeding on imports of certain plastic sacks 
and bags originating in Malaysia 

THE COUNCIL OF THE EUROPEAN UNION,  

Having regard to the Treaty establishing the European Community,  

Having regard to Council Regulation (EC) No 384/1996 of 22 December 1995 on protection 
against dumped imports from countries not members of the European Community (‘the basic 
Regulation’)4, 

Having regard to Article 2 of Council Regulation (EC) No 1425/20065 of 25 September 2006 
imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags 
originating in the People's Republic of China and Thailand, and terminating the proceeding on 
imports of certain plastic sacks and bags originating in Malaysia, 

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

Whereas: 

A. PREVIOUS PROCEDURE 

(1) 

By  Regulation  (EC)  No  1425/2006  the  Council  imposed  a  definitive  anti-dumping 
duty  on  imports  into  the  Community  of  certain  plastic  sacks  and  bags  falling  within 
CN codes ex 3923 21 00 (TARIC code 3923 21 00 20), ex 3923 29 10 (TARIC code 
3923 29 10 20) and ex 3923 29 90 (TARIC code 3923 29 90 20), originating in the 
People's  Republic  of  China  ('PRC')  and  Thailand.  Given  the  large  number  of  co-
operating parties, a sample of Chinese and Thai exporting producers was selected and 
individual  duty  rates  ranging  from  4,8%  to  14,3%  were  imposed  on  the  companies 
included in the sample, while other co-operating companies not included in the sample 
were attributed a duty rate of 8,4% for the PRC and 7,9% for Thailand. Duty rates of 
28,8% for the PRC and 14,3% for Thailand were imposed on companies which either 
did not make themselves known or did not cooperate with the investigation. 

(2) 

Article  2  of  Council  Regulation  (EC)  No  1425/2006  stipulates  that  where  any  new 
exporting  producer  in  the  PRC  or  Thailand  provides  sufficient  evidence  to  the 

4 

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OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  2117/2005  (OJ  L  340, 
23.12.2005, p. 17). 
OJ L 270, 29.09.2006, p. 4. 

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Commission that it did not export to the Community the products described in Article 
1(1)  during  the  investigation  period  (1  April  2004  to  31  March  2005)  (the  first 
criterion); it is not related to any of the exporters or producers in the PRC or Thailand 
which  are  subject  to  the  anti-dumping  measures  imposed  by  that  Regulation  (the 
second  criterion);  and  it  has  actually  exported  to  the  Community  the  products 
concerned  after  the  investigation  period  on  which  the  measures  are  based,  or  it  has 
entered into an irrevocable contractual obligation to export a significant quantity to the 
Community (the third criterion); then Article 1 of that Regulation can be amended by 
granting  the  new  exporting  producer  the  duty  rate  applicable  to  the  co-operating 
companies not included in the sample, i.e. 8,4% for Chinese companies and 7,9% for 
Thai companies. 

B. NEW EXPORTING PRODUCERS’ REQUESTS 

Nine  companies  (six  Chinese  and  three  Thai)  have  applied  to  be  granted  the  same 
treatment as the companies cooperating in the original investigation not included in the 
sample ("new exporting producer treatment"). 

An  examination  has  been  carried  out  to  determine  whether  the  applicants  fulfil  the 
criteria for being granted new exporting producer treatment as set out in Article 2 of 
Council Regulation (EC) No 1425/2006, by verifying: 

–  that they did not export to the Community the products described in Article 1(1) 

during the investigation period (1 April 2004 to 31 March 2005); 

–  that  they  are  not  related  to  any  of  the  exporters  or  producers  in  the  PRC  or 
Thailand  which  are  subject  to  the  anti-dumping  measures  imposed  by  that 
Regulation; and 

–  that  they  have  actually  exported  to  the  Community  the  products  concerned  after 
the  investigation  period  on  which  the  measures  are  based,  or  they  have  entered 
into  an  irrevocable  contractual  obligation  to  export  a  significant  quantity  to  the 
Community. 

An  application  form  was  sent  to  all  nine  applicants  who  were  also  asked  to  supply 
evidence to demonstrate that they meet the three criteria mentioned above. 

Companies fulfilling these three criteria may be granted the duty rate applicable to the 
co-operating companies not included in the sample, i.e. 8,4% for Chinese companies 
and  7,9%  for  Thai  companies,  by  amending  the  Annexes  I  and  II  of  Council 
Regulation (EC) No 1425/2006. 

Four  companies  (two  Chinese  and  two  Thai)  requesting  new  exporting  producer 
treatment did not reply to the submitted application form. It was therefore not possible 
to verify whether these companies fulfilled the criteria set out in Article 2 of Council 
Regulation (EC) No 1425/2006, and their request had to be rejected. 

Two  companies  returned  information  which  was  found  to  be  incomplete.  It  was 
therefore not possible to verify whether these companies fulfilled the criteria set out in 
Article  2  of  Council  Regulation  (EC)  No  1425/2006,  and  their  request  had  to  be 
rejected. 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

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(9) 

One Chinese company was found to be related to a company which is subject to the 
anti-dumping  measures  imposed  by  Council  Regulation  (EC)  No  1425/2006  and  its 
application for exporting producer treatment was therefore rejected as it failed one of 
the criteria listed above. 

(10)  One  other  Chinese  company's  application  was  rejected  because  it  does  not  have  its 
own  production  facility  and  could  therefore  not  be  considered  to  be  an  exporting 
producer. 

(11)  The  evidence  provided  by  the  remaining  exporting  producer  (a  Thai  company)  is 
considered sufficient to grant it the duty rate applicable to the co-operating companies 
not included in the sample (i.e. 7,9% for Thai companies) and consequently to add it to 
the list of exporting producers in Annex II (the 'Annex') to Council Regulation (EC) 
No 1425/2006. 

(12)  The applicants who co-operated and the Community industry have been informed of 
the  findings  of  the  examination  and  have  had  the  opportunity  to  submit  their 
comments. 

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

taken into account where warranted. 

C. CLARIFICATION AND CORRECTION 

(14) 

It has been brought to the attention of the Commission's services that the terminology 
'thickness of a bag' could cause confusion during the customs clearance process. It has 
therefore been decided to use this Regulation to clarify this issue, as well as to correct 
an incorrect reference in Article 2 of Council Regulation (EC) No 1425/2006, 

HAS ADOPTED THIS REGULATION: 

The following company shall be added to the list of producers from Thailand listed in Annex 
II to Council Regulation (EC) No 1425/2006: 

Article 1 

Company 

City 

POLY  PLAST  (THAILAND)  CO., 
LTD 

Samutsakorn 

In Article 1(1) of Council Regulation (EC) No 1425/2006 read 'of sheeting of a thickness not 
exceeding 100 micrometres (µm)' instead of 'of a thickness not exceeding 100 micrometers'. 

Article 2 

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The reference in Article 2 of Council Regulation (EC) No 1425/2006 should be read 'Article 
1(2)' instead of 'Article 1(3)'. 

Article 3 

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

Article 4 

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

Done at Brussels,  

For the Council 
The President 

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