Proposal for a Council Regulation Maintaining the anti-dumping duties on imports of polyester staple fibres originating in Belarus, the People's Republic of China, Saudi Arabia and Korea following a partial interim review pursuant to Article 11(3) of Council Regulation (EC) No 384/96
Date: 2008-08-14
Institutions: European Commission
Subjects: Belarus, China, Saudi Arabia, South Korea, anti-dumping duty, anti-dumping legislation, man-made fibre, originating product, plastics

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.8.2008 
COM(2008) 517 final 

Proposal for a 

COUNCIL REGULATION 

Maintaining the anti-dumping duties on imports of polyester staple fibres originating in 
Belarus, the People's Republic of China, Saudi Arabia and Korea following a partial 
interim review pursuant to Article 11(3) of Council Regulation (EC) No 384/96 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Context of the proposal 

Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  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  (‘the  basic  Regulation’)  to  imports  of  synthetic 
staple fibres of polyesters (PSF) originating in Belarus, the Republic of Korea, Saudi 
Arabia and the People's Republic of China.  

General context 

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

Existing provisions in the area of the proposal 

Council  Regulation  (EC)  No 428/2005  of  10  March  2005  imposing  a  definitive  anti-
dumping duty on imports of polyester staple fibres originating in the People's Republic 
of  China  and  Saudi  Arabia,  amending  Regulation  (EC)  No 2852/2000  imposing  a 
definitive  anti-dumping  duty  on  imports  of  polyester  staple  fibres  originating  in  the 
Republic  of  Korea  and  terminating  the  anti-dumping  proceeding  in  respect  of  such 
imports originating in Taiwan. (OJ L 71, 17.3.2005, p. 1–33). 

Consistency with other policies and objectives of the Union 

Not applicable. 

Consultation of interested parties and impact assessment 

Consultation of interested parties 

Interested parties concerned by the proceeding have had the possibility to defend their 
interests during the investigation, in line with the provisions of the basic Regulation. 

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

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

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

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Legal elements of the proposal 

Summary of the proposed action 

The  attached  proposal  consists  in  a  partial  interim  review  limited  to  Community  interest 
concerning the anti-dumping measures in place at the moment the procedure was launched 
(30 August 2007) on imports of polyester staple fibres. 

It  is  proposed  to  maintain  anti-dumping  measures  on  imports  of  polyester  staple  fibres 
originating in the Republic of Korea, Saudi Arabia and the People's Republic of China at 
the  same  level  as  imposed  by  Council  Regulation  (EC)  No 428/2005  and  not  to 
retroactively cancel the anti-dumping measures existing against Belarus between 22 June 
and 11 October 2007 The proposal is based on definitive findings which show that there 
are no Community interest reasons that should lead the Commission to repeal the existing 
measures at the moment the procedure was launched.  

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

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.  

Subsidiarity principle 

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

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

The  form  of  action  is  described  in  the  above-mentioned  basic  Regulation  and  leaves  no 
scope for national decision. 

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

Choice of instruments 

Proposed instruments: Regulation. 

Other  means  would  not  be  adequate  because  the  basic  Regulation  does  not  foresee 
alternative options. 

Budgetary implication 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

Maintaining the anti-dumping duties on imports of polyester staple fibres originating in 
Belarus, the People's Republic of China, Saudi Arabia and Korea following a partial 
interim review pursuant to Article 11(3) of Council Regulation (EC) No 384/96 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,  

Having  regard  to  Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection 
against dumped  imports  from  countries  not  members  of  the  European  Community1 
(‘the basic Regulation’), and in particular Article 11(3), 

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

Whereas: 

A. 

PROCEDURE 

1. Measures in force and subject to review 

(1) 

The  Council,  by  Regulation  (EC)  No  428/20052  imposed  a  definitive  anti-dumping 
duty  on  imports  of  polyester  staple  fibres  ('PSF'  as  defined  in  more  detail  in  recital 
(15)  below)  originating  in  the  People's  Republic  of  China  ('PRC')  and  Saudi  Arabia 
and amended Regulation (EC) No 2852/2000 imposing a definitive anti-dumping duty 
on imports of polyester staple fibres originating in the Republic of Korea ('Korea'). On 
8 July 2008, the Court of First instance annulled Article 2 of Council Regulation (EC) No 
428/2005, to a limited extent, in relation to the anti-dumping duty imposed on exports 
into  the  European  Community  of  goods  produced  and  exported  by  the  Korean 
company Huvis Corp3.  

2. Measures expired and subject to review  

(2) 

The  Council,  by  Regulation  (EC)  No  1799/2002  imposed  a  definitive  anti-dumping 
duty  of  imports  of  PSF  originating  in  Belarus4.  The  measures  imposed  by  that 
Regulation expired on 11 October 2007.  

1 

2 
3 
4 

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 71, 17.3.2005, p. 1. 
Case T-221/05 
OJ L 274, 11.10.2002, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

3.  Previous  investigation  concerning  imports  of  PSF  originating  in  Malaysia  and 

Taiwan. 

Following a withdrawal of the complaint, the Commission, by Decision 2007/430/EC5 
('the  termination  Decision')  terminated  an  anti-dumping  proceeding  concerning 
imports  of  PSF  originating  in  Malaysia  and  Taiwan  ('the  previous  investigation').  In 
accordance  with  Article  9(1)  of  the  basic  Regulation  it  was  considered  that  the 
termination  of  anti-dumping  duties  on  imports  from  Malaysia  and  Taiwan  was  not 
against the Community interest. 

4. Present investigation  

Having determined that there was sufficient prima facie evidence that the measures in 
force  at  the  time  could  be  no  longer  appropriate  because  their  maintenance  could  be 
against the Community interest, the Commission initiated, on its own initiative, on 30 
August 2007, by a notice published in the Official Journal of the European Union6, a 
partial interim review of the measures, in force on that date, applicable to imports of 
PSF  originating  in  Belarus,  Korea,  Saudi  Arabia  and  the  PRC  ('the  countries 
concerned'). The review is limited to the examination of whether or not the continued 
imposition  of  measures  is  not  against  the  Community  interest,  with  the  decision 
thereon possibly having retroactive effect as of 22 June 2007, i.e. the entry into force 
of the termination Decision 

As  mentioned  above,  the  anti-dumping  measures  imposed  on  imports  originating  in 
Belarus lapsed on 11 October 2007. As a consequence, the review concerning Belarus 
has  been  discontinued.  However,  it  was  formally  conducted  until  that  date  and  the 
Commission considered in particular the question of retroactive repeal of measures in 
force between 22 June 2007 and 11 October 2007, should the conclusions warrant this.  

5. Parties concerned 

The  Commission  officially  advised  the  Community  producers,  the  suppliers,  the 
importers  and  users  as  well  as  associations  of  users  and  producers,  exporters,  and 
representatives  of  the  countries  concerned  of  the  initiation  of  the  proceeding.  All 
interested parties were given the opportunity to make their views known in writing and 
to request a hearing. 

All interested parties who so requested and showed that there were particular reasons 
why  they  should  be  heard,  were  granted  a  hearing.  Complete  questionnaire  replies 
were received from 12 producers, 10 users, 3 importers, one European association of 
producers,  one  Austrian-German  association  of  producers,  one  German  federation  of 
users,  two  associations  belonging  to  this  federation  and  one  European  association  of 
users.  

(8) 

Further,  the  Commission  received  submissions  from  other  producers,  users  and 
importers which did not provide a complete answer to the questionnaire. 

5 
6 

OJ L 160, 21.6.2007, p. 30 
OJ C 202, 30.8.2007, p. 4 

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(9) 

Among  the  producers  and  users  that  participated  in  the  investigation  there  are  two 
vertically  integrated  groups  that  produce  PSF  (in  part  or  in  whole)  for  captive 
consumption. 

(10)  Finally,  one  association  of  Chinese  exporters  and  two  Korean  exporters,  assisted  by 

their Authorities, have made their views known.  

(11)  Exporters from Belarus and Saudi Arabia did not make their views known. In addition, 

no parties made comments regarding the measures in relation to these two countries. 

(12)  The Commission sought and verified all information it deemed necessary to determine 
whether  or  not  the  continued  imposition  of  the  measures  is  against  the  Community 
interest. Verification visits were carried out at the premises of the following interested 
parties: 

(a)  Community producers 

– 

– 

– 

Silon (Czech Republic) 

Trevira GmbH (Germany) 

Advansa (Germany) 

–  Wellman International Ltd (Ireland) 

(b)  Community users 

– 

– 

– 

PGI Nonwovens B.V (The Netherlands) 

Libeltex BVBA (Belgium) 

Lück GmbH (Germany) 

(c)  Community user and producer  

– 

ORV Manufacturing SpA (Italy) 

(d)  Associations of users  

– 

– 

Gesamtverband Textil + Mode (Confederation of the German Textile and 
Fashion Industry) 

Edana (European Disposables And Non-woven Applications) 

6. Investigation period 

(13)  The review investigation period ('RIP') covered the period from 1 July 2006 to 30 June 
2007. The examination of trends relevant for the assessment covered the period from 1 
January 2004 to the end of the RIP (the 'period considered').  

(14) 

It  is  recalled  that  in  the  previous  investigation,  the  investigation  period  covered  the 
period from 1 January to 31 December 2005 and the examination of trends relevant for 
the assessment covered the period from 1 January 2002 to 31 December 2005. 

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B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

1. Product concerned 

(15)  The product concerned is the same as in the investigations mentioned in recitals (1) to 
(3):  synthetic  staple  fibres  of  polyesters,  not  carded,  combed  or  otherwise  processed 
for  spinning.  It  is  currently  classifiable  within  CN  code  5503  20  00.  It  is  commonly 
referred to as polyester staple fibres ('PSF').  

(16)  The product is a basic material used at various stages of the manufacturing process of 
textile products. The Community consumption of PSF is either used for spinning, i.e. 
manufacturing filaments for the production of textiles, mixed with other fibres such as 
cotton and wool or for non-woven applications such as filling, i.e. stuffing or padding 
of certain textile goods such as cushions, car seats and jackets. 

C. 

SITUATION ON THE COMMUNITY MARKET 

1. Consumption in the Community  

(17)  The  determination  of  total  Community  consumption  was  based  on  the  import  and 
export  statistics  from  Eurostat  and  the  production  of  the  Community  industry  (  as 
defined in recital (26) below), and other Community producers.  

Table 1 

2004 

2005 

2006 

RIP 

834 141 

843 579 

822 509 

823 667 

100 

101 

99 

99 

Community 
consumption 

Volume 
(tonnes) 

Index 
(2004=100) 

(18)  As  shown  in  the  table  above,  consumption  of  PSF  has  slightly  decreased  during  the 
period  considered.  This  trend  is  in  clear  contrast  with  the  situation  examined  in  the 
previous  investigation  where  consumption  in  the  Community,  as  indicated  in  the 
Regulation  imposing  provisional  duties7,  increased  by  3%  during  the  period 
considered in that investigation (2002-2005).  

2.  Imports  from  Belarus,  the  PRC,  Saudi  Arabia  and  Korea:  volume,  market  share 

and import prices 

(19)  The  volume  of  imports  into  the  Community  from  the  countries  concerned  decreased 
by  28%  between  2004  and  the  RIP  and  the  market  share  went  from  24.4%  to  18% 
whereas prices increased by 16%. The data are based on Eurostat statistics.  

Table 2 

7 

Commission Regulation (EC) No 2005/2006 of 22 December 2006 imposing provisional anti-dumping 
duties on imports of synthetic staple fibres of polyesters (PSF) originating in Malaysia and Taiwan. OJ 
L 379, 28.12.2006, p. 65.  

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Imports 
countries concerned  

from 

the 

2004 

2005 

2006 

RIP 

Korea 

Volume (tonnes) 

122 260 

108 407 

111 967 

133 574 

Index (2004=100) 

100 

87 

Market share 

15.1% 

13.2% 

Prices 000 EUR/Tonne 

0.987 

Index (2004=100) 

100 

1.115 

113 

PRC  

Volume (tonnes) 

45 713 

38 103 

Index (2004=100) 

Market share 

Prices 000 EUR/Tonne 

Index (2004=100) 

Belarus 

Volume (tonnes) 

Index (2004=100) 

Market share 

Prices 000 EUR/Tonne 

Index (2004=100) 

Saudi Arabia 

100 

5.7% 

0.92 

100 

1 771 

100 

0.2% 

0.97 

100 

83 

4.6% 

0.97 

105 

153 

8 

0% 

1.17 

121 

Volume (tonnes) 

27 805 

6 433 

Index (2004=100) 

Market share 

Prices 000 EUR/Tonne 

Index (2004=100) 

Total 
concerned 

countries 

100 

3.4% 

0.93 

100 

EN 

23 

0.8% 

1.05 

113 

9 

92 

14.1% 

1.079 

109 

2 283 

5 

0.3% 

1.06 

115 

81 

4.5 

0% 

1.16 

120 

450 

2 

0.1% 

1.21 

130 

109 

16.9% 

1.114 

113 

8 935 

20 

1.1% 

1.10 

120 

43 

2.4 

0% 

1.26 

130 

72 

0.3 

0% 

0.9 

97 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Volume (tonnes) 

197 549 

153 096 

114 781 

142 624 

Index (2004=100) 

100 

77 

58 

Market share 

24.4% 

18.7% 

14.5% 

Prices 000 EUR/Tonne 

Index (2004=100) 

0.96 

100 

1.08 

112 

1.08 

112 

72 

18% 

1.11 

116 

(20)  The  sharp  increase  of  imports  from  Korea  during  the  RIP  was  mainly  due  to  the 
imposition  of  provisional  anti-dumping  duties  on  Taiwanese  imports  during  the  first 
semester  of  20078  .  Both  Korea  and  Taiwan  are  the  main  suppliers  of  Low  Melt 
Polyester  ('LMP')  and  Hollow  Conjugated  Siliconised  polyester  ('HCS').  Since  the 
level  of  provisional  duties  imposed  on  Taiwanese  imports  reached  29.5%  for  certain 
companies, Community importers decided to source LMP and HCS from Korea where 
the level of anti-dumping duties was significantly lower.  

3. Imports from other third countries: volume, market share and import prices 

Table 3 

Imports  from  other 
third countries  

2004 

2005 

2006 

RIP 

Volume (tonnes) 

171 633 

225 748 

278 392 

256 291 

Index (2004=100) 

Market share 

Prices 000 EUR/Tonne 

Index (2004=100) 

100 

21% 

1.09 

100 

132 

28% 

1.20 

110 

162 

35% 

1.15 

106 

149 

32% 

1.15 

106 

(21)  During  the  period  considered  imports  from  other  third  countries  have  increased  by 
49%. The reason for such increase is linked to the imposition in March 2005 of anti-
dumping  duties  on  imports  from  Saudi  Arabia  and  the  PRC  and  the  repeal  of  anti-
dumping measures on imports from Indonesia, Thailand and India in October 2006.  

(22)  Globally,  imports  have  therefore  increased  from  ca.  370  KT  to  ca.  400  KT  over  the 
period. If one uses the investigation period of the previous investigation as a starting 
point, the increase has been from ca. 380 KT to ca.400 KT. 

D. 

SITUATION OF THE COMMUNITY INDUSTRY 

1. Level of co-operation  

8 

Idem footnote 7.  

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(23)  During  the  RIP,  PSF  was  manufactured  by  19  producers  in  the  Community.  Co-
operation from Community producers was very high in this investigation. Amongst the 
19 community producers, 12 producers  accounting for 70% of production have fully 
co-operated.  Other  Community  producers  have  made  submissions  in  relation  to  the 
investigation  but  have  not  provided  full  co-operation.  Moreover,  two  associations  of 
producers  (CIRFS  and  IVC)9  have  also  submitted  their  comments.  In  addition,  all 
Community  producers  have  provided  information  on  their  production.  If  all 
submissions received (individual producers and associations) are taken into account, it 
can  be  concluded  that  Community  producers  accounting  for  88%  of  Community 
production  have  made  their  views  known  and  are  against  the  termination  of  the 
measures.  This  level  of  co-operation  is  significantly  higher  than  in  the  previous 
investigation  where  only  three  companies  accounting  for  slightly  more  than  25%  of 
Community  production  and  one  association  of  producers  (CIRFS)  co-operated  with 
the Commission and subsequently withdrew the complaint.  

(24)  The Commission examined all relevant economic factors and indices having a bearing 

on the situation of the Community producers. 

2. Definition of Community production and Community industry 

(25)  As  indicated  above,  during  the  RIP,  PSF  was  manufactured  by  19  producers  in  the 
Community.  These  19  producers  thus  constitute  the  total  Community  production 
within the meaning of Article 4(1) of the basic Regulation.  

(26) 

12 Community producers (Advansa GmbH, Fibracat Europa S.L., Fidion S.r.l., Frana 
Polifibre SpA, Greenfiber International S.A., IMP Comfort Sp.z o.o., Märkische Faser, 
Nurel  S.A.,  ORV  Manufacturing  SpA,  Silon  s.r.o.,  Trevira  GmbH  and  Wellman 
International Ltd) fully co-operated in the investigation. During the RIP they produced 
347 640 tonnes and they account for 70% of Community production. Accordingly they 
represented  a  major  proportion  of  the  total  Community  production  of  the  product 
concerned during the RIP.  

(27) 

It  was  therefore  considered  that  the  12  Community  producers  that  have  fully  co-
operated  with  the  investigation  represented  the  Community  industry  within  the 
meaning of Article 4(1) and 5(4) of the basic Regulation. They are herein referred to 
as the 'Community industry'. 

3. Economic situation of the Community industry 

Production 

(28)  Between 2004 and the RIP, production and market share of the Community industry 

evolved as follows: 

Table 5 

2004 

2005 

2006 

RIP 

9 

CIRFS  ("The  International  Rayon  and  Synthetic  Fibres  Committee",  the  representative  body  for  the 
European  man-made  fibre  industry)  and  IVC  (Industrievereinigung  Chemiefaser  e.V.,  Association  of 
the German and Austrian Man-Made Fibres Industries) 

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Production 
(tonnes) 

Volume 

317 450 

307 043 

Index (2004=100) 

100 

97 

321 127 

101 

347 640 

110 

Market share 

36.9% 

32.4% 

38.6% 

41.8% 

(29)  After a decrease in 2005, Community production has increased by 10% compared to 
the  situation  in  2004.  This  increase  is  linked  inter  alia  to  the  setting  up  of  new  PSF 
plants in Poland and Romania in 2006. It is expected that production will continue to 
grow in the future with the consolidation of the activities of the new above-mentioned 
plants  and  the  starting  up  of  another  plant  in  Bulgaria  with  an  annual  capacity 
of between 12 000 and 14 500 tonnes. As for market share, it also decreased in 2005 
and  rose  in  2006  and  2007.  If  we  compare  this  table  with  production  of  the 
Community  industry  of  the  previous  investigation  (as  defined  in  recital  (70)  of  the 
Regulation  imposing  provisional  duties)10  during  the  period  considered  in  that 
investigation (2002-2005), the trend has changed. Indeed, between 2002 and 2005, the 
production  of  that  Community  industry  decreased  by  9%  whereas  during  the  period 
considered  in  this  investigation  production  of  Community  industry  has  increased  by 
10%. As regards market share the situation is different as well. Indeed, market share of 
the  Community  industry  in  the  previous  investigation  decreased  by  2.3  percentage 
points  whereas  in  the  present  investigation  the  market  share  of  the  Community 
industry has increased by almost 5 percentage points. 

3.1 Production capacity and capacity utilisation 

(30)  Between  2004  and  2005  there  was  a  decrease  in  capacity  of  6%.  As  from  2006 
capacity  started  to  increase  and  reached  a  level  of  almost  413 000  tonnes  during  the 
RIP (almost 13% higher than in 2004). This increase was mainly due to the fact that 
two  of  the  co-operating  producers  have  installed  new  plants  in  Poland  and  Romania 
that  started  to  operate  in  2006.  As  for  capacity  utilisation,  it  decreased  by  2.4 
percentage points during the period considered. The cause of this decrease was in all 
likelihood linked to the installation of new capacities and the decrease in consumption 
in the Community. Data concerning production capacity are in stark contrast with data 
obtained in the previous investigation where the capacity of the Community industry 
decreased by 9% during the period considered (2002-2005).  

Table 6 

2004 

2005 

2006 

RIP 

Capacity in tonnes 

366 062 

344 872 

378 931 

412 916 

Index (2004=100) 

100 

94 

Capacity utilisation 

86.8% 

89.3% 

103.5 

85% 

112.7 

84.4% 

3.2 Turnover and quantities sold 

10 

Idem footnote 7. 

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Table 7 

2004 

2005 

2006 

RIP 

Turnover 000 EUR 

391 259 

388 502 

403 189 

443 540 

Index (2004=100) 

100 

99 

103 

113 

in 

Sales 
Community 
Index (2004=100) 

the 
(tonnes) 

281 083 

259 314 

272 553 

300 051 

100 

92 

97 

107 

(31)  During  the  period  considered  the  turnover  of  the  Community  industry  in  the 
Community and the quantity of PSF sold have increased by 13% and 7% respectively. 
These increases are linked to the starting up of two new plants in 2006 in Poland and 
Romania.  If  we  compare  these  data  with  those  of  the  previous  investigation  where 
there was a decrease of 1% in sales volume during the period considered, the situation 
has  radically  changed  and  evidence  shows  that  Community  industry  has  made  a 
significant effort to meet the demand.  

3.3 Sales prices and costs  

(32)  The unit sales price of the Community industry in the EU increased by 6.2% during 
the  period  considered  (from  1 392  EUR/Tonne  in  2004  to  1 478  EUR/Tonne  during 
the RIP). However, there has been a slight decrease in prices since 2005. The average 
cost  rose  by  9.7%  (from  1 388  EUR/Tonne  in  2004  to  1 523  EUR/Tonne  during  the 
RIP). This increase in costs was mainly due to the fact that the average cost of most of 
the raw materials (due in fine to the worldwide surge of oil prices) rose significantly. 
These  figures  show  that,  in  order  to  avoid  losing  market  share,  the  Community 
industry was not in a position to fully cover its cost of production with its sales prices. 
Price  increases  of  the  Community  industry  have  been  far  more  moderate  than  in  the 
previous investigation where they rose by 12% during the period considered. 

2004 

1.39 

100 

1.388 

Weighted 
price 
EUR/Tonne) 

average 
(000 

Index 

Weighted 
average 
(EUR/Tonne) 

cost 

Table 8 

2005 

1.50 

107 

1.511 

2006 

1.48 

106 

1.556 

RIP 

1.48 

106 

1.523 

Index(2003=100) 

100 

109 

112 

109.7 

3.4 Employment and wages 

EN 

13 

   EN 

 
 
 
 
 
 
 
 
 
 
 
(33)  The  level  of  employment  by  the  Community  industry  increased  by  17.8%  between 
2004 and the RIP and the average wage per employee decreased by 10%. Although the 
production  of  PSF  is  not  labour  intensive,  the  capacity  and  production  increase  was 
coupled with a substantial increase in the number of jobs. In the previous investigation 
the  level  of  employment  decreased  by  19%  during  the  period  considered  and  the 
average labour cost per employee increased by more than 30%-again a totally different 
situation.  

Table 9 

2005 

1 660 

95 

3 411 

107 

2006 

1 944 

111.5 

3 015 

94 

RIP 

2 053 

118 

2 859 

90 

Employment 

2004 

1 743 

Index(2004=100) 

100 

labour 
Average 
cost/employee  per 
month 

3 191 

100 

Index(2004=100) 

3.5 Profitability  

(34)  The  profitability  on  sales11  of  the  product  concerned  to  unrelated  customers  in  the 
Community has deteriorated significantly, whether the starting point is 2004 or 2005. 
The situation has therefore significantly worsened.  

Table 10 

2004 

2005 

2006 

RIP 

Profitability 

0.3% 

-0.8% 

-5.4% 

-3.2% 

3.6 Investments  

Table 11 

Investments 
000 EUR 

2004 

2005 

in 

15 604 

16 580 

100 

106 

Index (2003=100) 

2006 

39 865 

255 

RIP 

32 618 

209 

11 
investigation period has not been taken into account to avoid potential distortions in the figures.  

Profitability for companies with start-up operations which take place within or during part of the 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
                                                 
(35)  Between  2004  and  the  RIP,  the  level  of  investments  of  the  Community  industry 
increased by 109%. This increase is explained to a large extent by the installation of 
new plants in Poland and Romania that started to operate in 2006.  

3.7 Conclusion in relation to the situation of producers  

(36)  The investigation has concluded that, contrary to the case mentioned under recital (3), 
the Community industry is expanding its interest in and production of this product, and 
that its viability has been reinforced. 

(37)  The  Community  industry  has  been  able  to  increase  its  market  share  by  almost  5 
percentage points during the period considered. However, this increase took place in a 
period where consumption decreased by more than 1%.  

(38)  Over the period considered the sales price of the Community industry increased by 6% 
but there has been a slight decrease since 2005. In this context account should be taken 
of the fact that, as explained in recital (32) this price increase occurred at a time when 
costs rose by 10%.  

(39)  Furthermore, there has been a substantial increase in terms of employment due to the 
opening up of two new plants12. As far as profitability is concerned, the situation has 
deteriorated  during  the  last  years,  although  there  has  been  an  improvement  between 
2006 and RIP. In order be able to maintain its position in the market, the Community 
industry is obliged to sell at a loss.  

(40)  Having  regard  to  the  above,  it  can  be  concluded  that,  although  the  Community 
industry  has  benefited  to  some  extent  from  the  anti-dumping  measures  imposed  on 
imports from the countries concerned, it has not recovered from past dumping and is 
still  in  a  fragile  and  vulnerable  situation.  Should  measures  disappear,  imports  at  the 
same  and/or  increased  levels  from  the  countries  concerned  would  in  all  likelihood 
aggravate this situation. 

4.Development of imports should measures be repealed  

4.1  Unused capacities 

(41)  Spare capacity in the PRC accounts for around 3 million tonnes which corresponds to 
3.5  times  total  Community  consumption.  This  spare  capacity  has  increased  by  37% 
since 2005 (the year when the anti-dumping measures were imposed on imports from 
the PRC). As for Korea, spare capacity during the next year will be of 114 000 tonnes 
which corresponds to 14% of total Community consumption. Even if part of this spare 
capacity corresponds to the company for which a 0% anti-dumping duty is applicable, 
most of it corresponds to companies subject to anti-dumping duties. There is no data 
available  for  Saudi  Arabia.  As  for  Belarus,  there  is  no  need  to  make  a  prospective 
analysis on spare capacity because the measures expired in October 2007. The spare 
capacity  of  these  countries  could  be  directed  to  the  Community  should  measures  be 
repealed.  

12 

In  2005  one  Community  producer  went  bankrupt  in  the  UK  but  new  plants  based  in  Poland  and 
Romania have offset the loss of production and employment entailed by this bankruptcy. 

EN 

15 

   EN 

 
                                                 
4.2 

Incentives to re-direct sales volumes to the Community 

(42)  Some of the largest export markets in the world are protected by anti-dumping duties 
for imports of PSF originating in the PRC and Korea. Indeed, duties for imports from 
the PRC are in place in Turkey and the USA and they reach as much as 44.3% in the 
USA.  Moreover,  Korean  exports  are  subject  to  anti-dumping  duties  ranging  between 
0% and 24.6% in Japan, Turkey, Pakistan and the USA. If the measures in question, as 
outlined in recital (4) above, are repealed, the European Union will be the one of most 
important markets of some size for which exports from the PRC and Korea would not 
be subject to anti-dumping measures.  

(43) 

It  has  been  claimed  by  a  number  of  users  that  the  PRC  discourages  export  of  raw 
materials  such  as  PSF.  This  argument  cannot  be  accepted.  According  to  available 
statistics,  net  flow  of  PSF  in  the  PRC  (comparison  between  production  and  internal 
consumption) is steadily increasing and is expected to increase in the coming years a 
shown in the table below: 

2004 

-480 

2005 

-200 

Table 12 

2006 

23 

2007 

258 

2008 

2009 

449 

541 

flow 

Net 
(comparing 
production 
and 
mill  consumption) 
000 tonnes 

(44)  This is a clear sign that exports of PSF from the PRC are growing and are expected to 
grow in the future in spite of the claim that the PRC discourages exports of PSF. The 
argument is therefore rejected  

4.3  Sourcing policies 

(45)  An  association  of  users  has  indicated  that  producers  of  yarns  and  non-wovens  made 
from  PSF  often  have  a  clear  interest  to  buy  fibres  originating  in  the  EU  in  order  to 
produce  originating  yarns  and  non-wovens  and  export  them  to  countries  with 
preferential  agreements.  However,  the  data  provided  by  users  in  the  present 
investigation  show  that  85-100%  of  the  turnover  of  companies  in  the  non-woven 
sector  for  products  incorporating  PSF  is  made  through  sales  in  the  Community. 
Accordingly, the rules of origin for exports to countries with preferential agreements 
should  not  play  a  significant  role  for  users  of  PSF  when  making  decisions  on  the 
origin of the products in the moment of their acquisition. In the absence of evidence to 
support the association's argument, the argument is therefore dismissed.  

4.4  Conclusion on the development of imports should measures be repealed 

(46) 

It  is  therefore  concluded  that,  given  the  incentives  observed  above,  there  is  a 
likelihood that significant quantities will be exported to the Community, should anti-
dumping measures in force be lifted. 

5. Conclusion on Community industry 

EN 

16 

   EN 

 
 
(47)  The Community industry has made a substantial effort in terms of investments which 
has been translated into a significant expansion. The Community industry situation has 
changed substantially over the last years, as evidenced in particular by the appearance 
of new industry in Poland and Romania and the foreseen expansion in Bulgaria.  

(48)  Despite  these  renewed  efforts  in  terms  of  expansion  and  investments  it  should 
however,  as  stated  before,  be  noted  that  the  situation  of  the  Community  industry  in 
terms  of  profitability  is  still  precarious.  There will  be,  in  all  likelihood,  a  significant 
quantity of dumped imports if anti-dumping measures were to be removed.  

(49)  Large  import  volumes  at  dumped  prices  would  lead  to  additional  price  pressure  on 
Community  industry,  reduced  profit  margins  and  profitability  and  increased  losses. 
This  could  have  as  a  consequence  the  likely  cancellation  of  further  investment,  a 
decline  in  innovation,  the  erosion  of  the  competitive  position  of  integrated  industry, 
cutbacks and closures. 

(50)  Having  regard  to  the  above,  if  the  Community  industry  were  exposed  to  significant 
volumes  of  imports  from  the  PRC,  Korea  and  Saudi  Arabia  at  dumped  prices  and 
without measures, this would cause a further deterioration of their financial situation. 
On this basis, it is therefore concluded that the repeal of the measures would be against 
the interest of Community industry.  

E. 

COMMUNITY USERS 

(51)  The market for products incorporating PSF is divided into (a) the spinning applications 
(i.e. the manufacturing of filaments for the production of textiles, after mixing or not 
with  other  fibres  such  as  cotton  or  wool),  (b)  the  non-woven  applications:  the 
manufacturing of sheets and webs, not converted into yarns, excluding paper and (c) 
the  filling  applications  (i.e.  the  stuffing  or  padding  of  certain  textile  goods,  as  for 
example the cushions or car seats). 

1. Level of co-operation of Community users 

(52) 

16 industrial users have sent submissions in relation to the present investigation. They 
represent  17%  of  total  Community  consumption  of  PSF  and  around  13%  of  imports 
from the countries concerned. However, full co-operation was obtained only from 10 
users13  representing  around  12%  of  total  Community  consumption  of  PSF  (all  these 
users  that  have  fully  co-operated  belong  to  the  non-woven  and  filling  sectors).  As 
regards the other users having partially co-operated, only one operates in the spinning 
sector.  

(53)  Furthermore,  Gesamtverband  Textil  +  Mode  (the  German  federation  of  textile 
industries representing both the spinning and the non-woven sectors), two associations 
belonging 
the  said  federation:  Industrieverband  Garne-Gewebe-Technische 
Textilien  e.V.  (IVGT)  and  Verband  der  Deutschen  Heimtextilien-Industrie  e.V.  and 
one European association representing companies of the non-woven sector (EDANA) 
have made submissions asking the Commission to terminate the existing measures. All 
the  users  mentioned  above  are  members  of  one  or  more  of  these  associations.  The 

to 

13 

Libeltex,  ORV,  PGI  Nonwovens,  Ziegler,  Tharreau,  Sandler,  Frankenstolz,  Lueck,  TWE 
Vliesstoffwerke and IMP Comfort 

EN 

17 

   EN 

 
                                                 
representativity of these associations corresponds to around 30% of total Community 
consumption of PSF.  

(54)  The level of  co-operation  of individual users in this proceeding is  higher than  in the 
previous investigation. It should also be noted that in the previous investigation only 
the  users  in  favour  of  non-imposition  of  duties  (around  10%  of  total  consumption) 
made  their  views  known  whereas  in  this  proceeding  users  which  are  in  favour  of 
maintaining the measures have also participated.  

2. Arguments put forward by users. 

2.1  Users in favour of termination  

(55)  Users  representing  around  11%  of  total  PSF  consumption  and  10%  of  imports  from 
the  countries  concerned  have  put  forward  a  number  of  arguments  against  the 
maintenance  of  duties.  All  of  these  users  are  members  of  one  or  more  of  the  users' 
associations mentioned above which are also in favour of termination. The arguments 
put forward by users and associations in favour of termination are examined below. 

(56)  First they claim that they are confronted with a difficult situation because of increasing 
competition  on  their  finished  products  from  countries  which  moved  from  exports  of 
PSF  to  exports  of  non-woven  products  (e.g.  the  PRC).  They  argue  that  in  case  of 
termination of the existing measures, they will have the ability to source cheaper fibre 
and therefore become more competitive against finished products coming from Asia. 
If the market price for PSF decreases there will be a potential increase in profitability. 
Account  should  be  taken  of  the  fact  that their  customers  are  mainly  discount'  chains 
for whom a rock-bottom price is decisive and the margin applied to finished products 
is very low.  

(57) 

In relation to these arguments, it should be pointed out that the information supplied 
by users that have co-operated in the investigation shows that their situation in terms 
of  profitability  has  not  changed  in  spite  of  the  imposition  in  2005  of  anti-dumping 
duties on PSF originating in the PRC and the increase of imports from this country of 
finished products. This is due to the fact that the impact of PSF in their total costs in 
products incorporation PSF has also remained stable as shown in the table below: 

2004 

3.48% 

22.3% 

Profitability 

Total  costs  of  PSF 
as  a  percentage  of 
total costs 

Table 13 

2005 

4.07% 

24% 

2006 

3.88% 

24% 

RIP 

3.79% 

24% 

(58)  The situation is thus different from the previous investigation where the imposition of 
new  anti-dumping  duties  that  could  reach  almost  30%  in  certain  cases  would 
undoubtedly  have  had  a  substantially  more  negative  impact  in  the  costs  structure  of 
users of PSF and the possibility to make attractive offers to their clients. 

EN 

18 

   EN 

 
 
 
 
 
 
 
(59)  Furthermore,  their  turnover  in  the  Community  related  to  products  incorporating  PSF 
has increased by more than 10% during the period considered as indicated in Table 14 
below:  

Table 14 

2004 

2005 

2006 

RIP 

427 694 

452 329 

456 445 

472 750 

100 

106 

107 

111 

Turnover 
(000/EUR) 

Index: 2004=100 

(60)  These figures show that the increase of imports of finished goods from the PRC since 
2005 has not prevented the Community users of PSF from expanding and selling their 
goods to retailers and maintaining their profit margin. As regards the possible impact 
on final prices paid by consumers, no  argument has been put forward in this respect 
whereas  in  the  previous  investigation  it  was  concluded  that  the  imposition  of  new 
duties that could reach almost 30% could have had an impact on consumers.  

(61)  The users in favour of termination have also argued that prices of PSF are increasing 
within the Community despite a falling dollar. This statement does not correspond to 
the data obtained by the Commission during the investigation. Although the price of 
PSF rose sharply in 2005, it has remained stable afterwards as shown in Table 8 above 
for  PSF  produced  and  sold  within  the  Community  and  in  the  Table  15  below  for 
imported PSF14: 

Table 15 

2004 

2005 

2006 

2007 

Prices 
EUR/Tonne 

000 

1.02 

Index (2004=100)  

100 

1.15 

113 

1.13 

111 

1.15 

113 

1st 
quarter 
2008 

1.15 

113 

(62)  Having  regard  to  the  above,  the  existing  measures  do  not  appear  to  have  had  an 

overwhelming impact on the costs and profitability of the user companies.  

(63)  Second, the users which are against the imposition of measures indicate that there is a 
substantial difference in the level of employment in the Community between the sector 
concerning  production  of  PSF  (around  3 000  people)  and  the  downstream  industry 
(allegedly 70 000 people).  

(64)  As regards this claim, although the figure of 70 000 people seems to be exaggerated, it 
cannot  be  denied  that  the  user  industry  is  more  labour  intensive  than  the  producer 

14 

Source: EUROSTAT. It has also been put forward by an association of producers that there has been a 
sharp increase in prices in June 2008 compared to June 2007. This sharp increase corresponds to prices 
in dollars but if we consider prices in EUR they have remained stable. 

EN 

19 

   EN 

 
 
 
                                                 
industry.  Given  the  limited  level  of  full  co-operation  among  users  (figures  for  jobs 
have  only  been  supplied  by  users  accounting  for  12%  of  total  Community 
consumption of PSF) it has not been possible for the Commission to obtain accurate 
data on employment. Nevertheless in Table 16 below it is shown that users that have 
fully co-operated in the investigation employ 5 009 people. This would indicate that at 
least  40 000-45 000  people  would  be  involved  in  the  production  of  goods 
incorporating PSF. The Table below also contains indications on how employment has 
evolved among co-operating users: 

Employment 

2004 

3 898 

Index(2004=100) 

100 

Table 16 

2005 

4 471 

115 

2006 

4 854 

125 

RIP 

5 009 

129 

(65)  Although the number of companies that have co-operated is limited, it can nonetheless 
be  concluded  that  the  existing  anti-dumping  duties  have  not  prevented  employment 
from  significantly  growing  during  the  period  considered.  Accordingly  this  users' 
argument  is  rejected.  Of  course,  the  situation  was  different  in  the  previous 
investigation where the imposition of additional anti-dumping duties that could reach 
30% could have led to job losses in the users' sector.  

(66)  Third, the users mentioned in this section point out that there is a growing demand in 
the  non-woven  and  filling  sectors  of  two  special  types  of  PSF:  HCS  and  LMP  (as 
mentioned  in  recital  (20)  above)  and  for  which  there  is  limited  production  in  the 
Community whereas the PRC and Korea have large production capacities.  

(67) 

In  this  respect,  according  to  best  estimates  of  the  Commission  in  the  light  of  the 
information  put  forward  by  interested  parties,  total  consumption  of  LMP  in  the 
Community  during  the  RIP  is  in  the  range  of  85 000-90 000  tonnes  and  total 
consumption  of  HCS  is  in  the  range  of  65 000-70 000  tonnes.  The  Community 
industry  is  currently  supplying  2 155  tons  of  LMP  and  21 543  tons  of  HCS.  The 
demand  of  these  types  of  PSF  is  continuously  growing  and,  according  to  a  users' 
association, there will be a 6% annual increase for both types in the coming years.  

(68)  Community  producers  of  PSF  claim  that  production  of  these  "specialties"  in  the 
Community is limited because the existing level of dumped prices do not allow them 
to  increase  production.  According  to  the  data  collected  in  the  present  investigation 
capacities for HCS and LMP in the Community industry during the period considered 
have evolved as follows: 

Table 17 

2004 

2005 

2006 

RIP 

67 050 

46 550 

61 550 

61 550 

100 

69 

92 

92 

Capacity 
Community 
industry HCS 

Index (2004=100)  

EN 

20 

   EN 

 
 
 
Capacity 
Community 
industry LMP 

Index (2004=100) 

32 050 

32 050 

32 050 

32 050 

100 

100 

100 

100 

(69)  This  Table  shows  that  the  Community  industry  would  be  in  a  position  to  cover  88-
95% of total demand of HCS and around 37% of total demand for LMP in case prices 
would  reach  a  certain  level.  Moreover,  even  if  the  Community  industry  produces 
limited quantities of these "specialties", users are able to source them from Korea and 
the PRC with limited anti-dumping duties (only 5.7% from Huvis in Korea and 4.9% 
from  Far  Eastern  in  the  PRC).  As  far  as  the  possibility  to  source  from  Taiwan  is 
concerned, it has been claimed that production of PSF in Taiwan is decreasing and this 
will  lead  to  price  increases  or  shortages  of  supply  and  if  it  is  to  be  substituted  by 
imports  from  the  PRC  and  Korea,  the  cost  impact  of  the  duties  paid  for  these 
"specialties"  imported  from  the  PRC  and  Korea  would  be  significant  due  to  the  low 
profit margin of Community users. These arguments cannot be accepted. On the one 
hand, even if production of PSF in Taiwan is decreasing, spare capacity is expected to 
increase  (the  expected  spare  capacity  for  2008  is  around  122 000  tons  and  for  2009 
150 000 tons). In conclusion, it is not clear that there would be a structural shortage of 
these specialties.  

(70)  As for prices in these "specialties", there are no official statistics but, as shown in the 
Table  below,  according  to  the  data  supplied  by  co-operating  companies,  the  price  of 
HCS (including anti-dumping duties) has increased only by 2% between 2004 and the 
RIP.  There  was  even  a  substantial  decrease  in  price  in  2006.  The  increase  between 
2006 and the RIP was in all likelihood due to the imposition during the first semester 
of 2007 of provisional anti-dumping duties on imports from Taiwan. As regards LMP, 
its price has increased by 18% during the period considered.  

2004 

2005 

Price  HCS  000 
EUR/Tonne 

Index (2004=100)  

Price  LMP  000 
EUR/Tonne 

Index (2004=100) 

1.21 

100 

1.31 

100 

1.26 

104 

1.44 

110 

Table 18 

2006 

1.05 

87 

1.43 

109 

RIP 

1.24 

102 

1.54 

118 

(71)  This data has to be analysed in relation to the weight of these specialties on total costs 
of products incorporating PSF. On the basis of the data supplied by the co-operating 
users,  the  impact  of  HCS  on  their  total  costs  for  products  incorporating  PSF  would 
only account for 1.98% and the impact of LMP would account for 4.38%. Bearing in 
mind  that  the  average  profitability  is  around  4%  the  impact  on  total  costs  linked  to 
these  "specialties",  in  spite  of  the  substantial  increase  of  the  price  of  LMP,  is  not 
significant. This claim is therefore rejected. 

EN 

21 

   EN 

 
 
(72)  The situation was different in the previous investigation where the imposition of anti-
dumping duties of almost 30% on imports of LMP and HCS originating in Taiwan and 
the price increases that this would have entailed for the same products would have had 
a more significant impact on total costs.  

2.2  Users against termination 

(73)  Users  representing  around  6%  of  total  Community  consumption  of  PSF  and  3%  of 
imports  from  the  countries  concerned  have  pointed  out  that  the  termination  of 
measures  will  jeopardize  the  profitability  of  the  downstream  industry  as  the 
bankruptcy  of  the  PSF  sector  in  the  EU  will  lead  to  increases  in  PSF  prices  in  two 
years time and consequently an increase of imports of goods incorporating PSF can be 
expected.  

(74) 

In  the  light  of  the  arguments  developed  under  C.4  above  (likelihood  of  significant 
imports should measures be repealed), it is not excluded that this could indeed occur, 
with the associated risks for the maintenance of effective competition.  

3. Conclusion 

(75)  Taking into account all of the above factors, it is concluded that, although most of the 
users that have participated in the investigation consider that the maintenance of duties 
is  against  their  interest,  the  investigation  shows  that  the  continuation  of  measures 
would  not  have  a  significantly  negative  effect  on  their  economic  and  financial 
situation. Moreover, contrary to the previous investigation, users have varying views 
on  the  impact  of  a  possible  termination  of  existing  measures  on  their  business. 
Although, as explained above, most of them have asked the Commission to repeal the 
anti-dumping duties, among those which have co-operated in the investigation there is 
also a significant number that is against the termination of duties.  

F. 

IMPORTERS AND TRADERS 

(76) 

(77) 

6  importers/traders  made  submissions  in  relation  to  this  investigation  within  the 
deadline indicated in the Notice of initiation but only three of them (Saehan Europe, 
GSI Global Service International and Marubeni) have fully co-operated and provided 
answers  to  all  the  questions  raised  by  the  Commission.  All  are  profitable  companies 
and the number of employees related to the import/trade of PSF product is negligible.  

It does not appear that the maintenance of the duties would have any relevant negative 
impact on their business. Most of them are of the opinion that it is in their interest to 
terminate the measures imposed on imports from Korea but not on imports from the 
PRC  because  it  will  entail  a  huge  flow  of  commodities  and  the  price  level  will  go 
down  as  well  as  their  margin.  On  the  other  hand,  according  to  their  views,  since 
Korean unused capacities are more limited than Chinese, they are of the opinion that 
the  impact  of  the  Korean  imports  on  prices  will  not  be  to  the  detriment  of  their 
business.  

(78)  On this basis, it is concluded that, whether measures are maintained or not, generally 
speaking, the activity of importers and traders will not be significantly affected.  

G. 

OTHER CONSIDERATIONS  

EN 

22 

   EN 

 
(79) 

It has been argued by the Community producers which allegedly produce 56% of PSF 
from  recycled  materials  that  imports  of  dumped  PSF  have  adversely  affected  the 
profitability of recycling companies; it has also been claimed that 425 000 people are 
employed  in  the  collection  of  polyethylene  terephthalate  in  order  to  supply  the 
recycling  companies.  In  this  respect,  it  has  to  be  pointed  out  that  recyclers  of  PET 
bottles were not interested in participating in this investigation in spite of the invitation 
made  in  the  Notice  of  Initiation  and  the  questionnaires  sent  to  them  by  the 
Commission, to which no reply was received. On the other hand, there is an important 
and growing demand of recycled PET bottles in Asia and the non-imposition of anti-
dumping measures will not preclude PET bottle recyclers from selling their products 
on the world market. Consequently these claims are rejected.  

(80)  Moreover,  it  has  been  pointed  out  by  Community  producers  that  making  polyester 
staple  fibre  from  recycled  materials  uses  less  energy  than  the  chemical  process  and 
transport  of  imported  PSF  from  Asia  produces  carbon  emissions.  Consequently, 
replacement of Community production by dumped imports, in particular from the PRC 
and  Korea,  would  increase  carbon  emissions  and  set  back  the  EU  climate  change 
objectives.  In  this  context  it  is  in  any  event  recalled  that  the  Community  interest 
analysis in anti-dumping proceedings focuses on the economic impact of measures on 
the  economic  operators  concerned  and  is  not  directly  related  to  environmental 
concerns. 

(81)  No  arguments  have  been  put  forward  regarding  Saudi  Arabia  (or  Belarus)  which 
would justify a conclusion that maintaining measures would not be in the Community 
interest. 

H. 

CONCLUSION  

(82) 

In the light of the above, it can be concluded that the Community producers of PSF, 
including the Community industry, are benefitting from the measures in force but are 
still  in  a  vulnerable  situation.  During  the  period  considered,  they  have  been  able  to 
increase  their  market  share,  production,  capacity,  turnover  and  the  level  of 
employment. Furthermore they have made substantial efforts in terms of investment, 
have  opened  new  plants  in  Poland,  Romania  and  Bulgaria.  In  addition,  Tergal,  an 
important supplier of the spinning industry, has overcome its financial difficulties and, 
according to the information supplied by the company is not anymore under safeguard 
procedure  ("procédure  de  sauvegarde")  as  from  July  2007.  However,  their  financial 
situation  is  still  precarious  and  cannot  face  a  sudden  influx  of  dumped  imports.  The 
maintenance  of  the  duties  will  continue  to  provide  substantial  benefits  to  the 
Community industry and contribute in all likelihood to the restoration of its viability. 
This situation is in stark contrast to the picture obtained in the previous investigation 
where it was concluded that the supply of PSF could be problematic in the Community 
market  due  to  industrial  conversion  of  one  company  (La  Seda)  in  order  to  increase 
output of other products, the bankruptcy of another producer (Pennine Fibers) and the 
former financial difficulties of Tergal. 

(83)  As  for  users  and  importers,  the  existing  anti-dumping  duties  on  imports  from  the 
countries  concerned  have  not  jeopardised  their  viability  and  capacity  to  expand. 
Therefore,  if  measures  are  terminated,  any  advantages  for  users  and  importers  are 
likely to be limited, given that the anti-dumping duties did not have a significant effect 
on their economic situation. Contrary to this conclusion, the analysis of the previous 

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investigation  showed  that  the  imposition  of  new  of  anti-dumping  duties  that  could 
reach almost 30% would have had an impact on prices of PSF, in particular HCS and 
LMP, that could have potentially put into financial difficulties a substantial number of 
users.  

(84) 

It  is  therefore  concluded  that  the  possible  limited  advantages  to  be  enjoyed  by  users 
and importers of PSF in the Community if duties were to be repealed, would clearly be 
disproportionate compared to the serious disadvantages to the Community industry.  

(85)  Accordingly, it can be concluded that termination of the existing measures on imports 

from the countries concerned on Community interest grounds would not be justified.  

I. 

APPLICATION OF THE PRINCIPLE OF NON-DISCRIMINATION  

(86) 

It has been put forward by a number of interested parties that anti-dumping measures 
may  not  be  imposed  on  a  discriminatory  basis,  as  stated  in  Article  9(5)  of  the  Basic 
Regulation  which  provides  that  "an  anti-dumping  duty  shall  be  imposed  in  the 
appropriate  amounts  in  each  case,  on  a  non-discriminatory  basis  on  imports  of  a 
product  from  all  sources  found  to  be  dumped  and  causing  injury,  …  ".  It  has  been 
indicated  as  well  that  this  principle  of  non-discrimination  is  also  a  fundamental 
principle of WTO law.  

(87)  According to the interested parties that invoke the application of the principle of non-
discrimination,  imports  of  PSF  from  Taiwan  and  Malaysia  were  found  to  have  been 
dumped  and  causing  injury  in  Commission  Regulation  (EC)  No  2005/2006.  It  has 
been claimed that "the reason why these two sources of PSF imports were not subject 
to anti-dumping duties is not that the Commission would have subsequently found that 
imports  of  PSF  from  Malaysia  and  Taiwan  were  not  dumped  or  were  not  causing 
injury  …."  Furthermore,  it  has  been  argued  that  the  Commission's  decision  not  to 
continue  to  impose  anti-dumping  measures  on  imports  of  PSF  from  Malaysia  and 
Taiwan  from  22  June  2007  despite  the  fact  that  these  imports  were  found  to  be 
dumped and causing injury has the effect of invalidating the continued imposition of 
anti-dumping duties on imports of PSF from other countries. 

(88)  First,  it  is  underlined  that  in  the  case  of  Malaysia  and  Taiwan  the  complaint  was 
withdrawn and that no definitive finding was made by the Council as to the adequacy 
of imposing anti-dumping duties. As a result, there is no discrimination. 

(89)  Second, the nature of the legal tests regarding Community interest under articles 9(1) 
(applicable in the Taiwan and Malaysia case) and 21 (applicable in the current case) of 
the basic Regulation is different. Under the former, the test is whether the balance of 
interests at hand is so positive that the Commission should continue the proceedings ex 
officio  even  in  the  absence  of  a  supported  complaint.  Under  the  latter,  the  test  is 
whether  the  balance  of  interests  is  so  negative  that  measures  should  be  terminated. 
Therefore, the different nature of the tests implies that there can be no discrimination.  

(90)  Third, even in the hypothetical situation of a definitive decision taken by the Council 
concerning a non-imposition of anti-dumping duties on imports of PSF originating in 
Malaysia and Taiwan, there would be no discrimination in this case, given that the said 
principle  is  applicable  only  if  similar  conclusions  are  reached  for  different 
investigations  concerning  the  same  product.  In  other  words,  compliance  with  the 

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principle  of  non-discrimination  as  set  out  in  Article  9(5)  the  basic  Regulation  and 
Article 9(2) of the WTO Anti-dumping agreement requires that comparable situations 
must not be treated differently, and that different situations must not be treated in the 
same way. As explained above, the facts and conclusions in the present investigation 
are  radically  different  from  the  facts  and  conclusions  in  the  case  of  Malaysia  and 
Taiwan and, consequently, the two situations are not comparable. 

(91)  Having regard to the above the claims put forward in relation to the application of the 

principle of non-discrimination are rejected. 

J. 

FINAL PROVISIONS 

(92)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which  it  is  intended  to  recommend  that  the  existing  measures  be  maintained.  They 
were also granted a period to make representations subsequent to this disclosure. 

(93)  On the basis of the above facts and considerations, it is concluded that, in accordance 
with  Article  11(3)  of  the  basic  Regulation,  the  interim  review  should  be  terminated 
and  the  existing  anti-dumping  duties  imposed  on  imports  of  PSF  produced  and 
exported  to  the  European  Community  by  the  countries  concerned  should  be 
maintained. 

HAS ADOPTED THIS REGULATION: 

Sole Article 

The  partial  interim  review  of  the  anti-dumping  measures  applicable  on  imports  of  synthetic 
staple fibres of polyesters (PSF) originating in Belarus, the Republic of Korea, Saudi Arabia 
and the People's Republic of China normally  declared  under CN code 5503 20 00, is hereby 
terminated without amending the anti-dumping measures in force.  

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

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

Done at Brussels, […] 

For the Council 
The President 
[…] 

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