Council Regulation (EC) No 893/2008 of 10 September 2008 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 Regulation (EC) No 384/96
Date: 2008-09-10
Institutions: Council of the European Union
Subjects: Belarus, China, Saudi Arabia, South Korea, anti-dumping duty, anti-dumping legislation, import, man-made fibre, originating product, plastics

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

I

REGULATIONS

COUNCIL REGULATION (EC) No 893/2008

of 10 September 2008

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 Regulation (EC) No 384/96

THE COUNCIL OF THE EUROPEAN UNION,

2. Measures expired and subject to review

(2)

(3)

(4)

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of
22 December 1995 on protection against dumped imports
from countries not members of the European Community (1)
(the basic Regulation), and in particular Article 11(3),

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

Whereas:

(1)

A. PROCEDURE

1. Measures in force and subject to review

The Council, by Regulation (EC) No 428/2005 (2)
imposed a definitive anti-dumping duty on imports of
polyester staple fibres (PSF as defined in more detail in
recital (15)) originating in the People’s Republic of China
(PRC) and Saudi Arabia and amended Regulation (EC) No
2852/2000 (3) 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 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 Corp (4).

The Council, by Regulation (EC) No 1799/2002 (5)
imposed a definitive anti-dumping duty of imports of
PSF originating in Belarus. The measures imposed by
that Regulation expired on 11 October 2007.

3. Previous investigation concerning imports of PSF

originating in Malaysia and Taiwan

of

the

complaint,

a withdrawal

the
Following
Commission, by Decision 2007/430/EC (6)
(the termi­
nation 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

the Community interest,

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 Commission
initiated, on its own initiative, on 30 August 2007, by
a notice published in the Official Journal of the European
Union (7), a partial
in
force on that date, applicable to imports of PSF originat­
ing in Belarus, Korea, Saudi Arabia and the PRC (the
countries concerned). The review is limited to the exa­
mination 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.

interim review of the measures,

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ L 71, 17.3.2005, p. 1.
(3) OJ L 332, 28.12.2000, p. 17.
(4) Case T-221/05.

(5) OJ L 274, 11.10.2002, p. 1.
(6) OJ L 160, 21.6.2007, p. 30.
(7) OJ C 202, 30.8.2007, p. 4.

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(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

above,

a consequence,

anti-dumping measures
the
As mentioned
imposed on imports originating in Belarus lapsed on
review
11 October 2007. As
it
concerning Belarus has been discontinued. However,
and the
was
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.

conducted until

that date

formally

the

5. Parties concerned

the suppliers,

The Commission officially advised the Community
the importers and users as
producers,
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,
three
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.

the Commission received submissions

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

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

in whole)

Finally, one association of Chinese exporters and two
Korean exporters, assisted by their Authorities, have
made their views known.

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.

information it
The Commission sought and verified all
the
deemed necessary to determine whether or not
continued imposition of
the
the measures is against
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).

(13)

(14)

(15)

6. Investigation period

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).

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

B. PRODUCT CONCERNED AND LIKE PRODUCT

Product concerned

The product concerned is the same as in the investi­
gations 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.
is commonly referred to as
polyester staple fibres (PSF).

It

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(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)), and other Community producers.

Table 1

Community consumption

2004

2005

2006

RIP

Volume (tonnes)

834 141

843 579

822 509

823 667

Index (2004 = 100)

100

101

99

99

(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 duties (8),
increased by 3 % during the period considered in that investigation (2002 to 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

Imports from the countries concerned

2004

2005

2006

RIP

Korea

Volume (tonnes)

122 260

108 407

111 967

133 574

Index (2004 = 100)

Market share

Prices 000 EUR/tonne

Index (2004 = 100)

PRC

Volume (tonnes)

Index (2004 = 100)

Market share

Prices 000 EUR/tonne

Index (2004 = 100)

100

15,1 %

0,987

100

87

13,2 %

1,115

113

45 713

38 103

100

5,7 %

0,92

100

83

4,6 %

0,97

105

92

14,1 %

1,079

109

2 283

5

0,3 %

1,06

115

109

16,9 %

1,114

113

8 935

20

1,1 %

1,10

120

(8) 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 from the countries concerned

2004

2005

2006

RIP

Belarus

Volume (tonnes)

Index (2004 = 100)

Market share

Prices 000 EUR/tonne

Index (2004 = 100)

Saudi Arabia

Volume (tonnes)

Index (2004 = 100)

Market share

Prices 000 EUR/tonne

Index (2004 = 100)

Total countries concerned

Volume (tonnes)

Index (2004 = 100)

Market share

Prices 000 EUR/tonne

Index (2004 = 100)

1 771

100

0,2 %

0,97

100

27 805

100

3,4 %

0,93

100

153

8

0 %

1,17

121

6 433

23

0,8 %

1,05

113

81

4,5

0 %

1,16

120

450

2

0,1 %

1,21

130

43

2,4

0 %

1,26

130

72

0,3

0 %

0,9

97

197 549

153 096

114 781

142 624

100

24,4 %

0,96

100

77

58

18,7 %

14,5 %

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 2007 (9). 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.

(9) See footnote 8.

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

D. SITUATION OF THE COMMUNITY INDUSTRY

1. Level of cooperation

(23) During the RIP, PSF was manufactured by 19 producers in the Community. Cooperation from
Community producers was very high in this investigation. Amongst the 19 community producers,
12 producers accounting for 70 % of production have fully cooperated. Other Community producers
have made submissions in relation to the investigation but have not provided full cooperation.
Moreover, two associations of producers (CIRFS and IVC) (10) have also submitted their comments.
If all
In addition, all Community producers have provided information on their production.
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 cooperation 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) coop­
erated 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)

Twelve 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 Manu­
facturing SpA, Silon s.r.o., Trevira GmbH and Wellman International Ltd) fully cooperated 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 cooperated with the
investigation represented the Community industry within the meaning of Articles 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 4

2004

2005

2006

RIP

Production volume (tonnes)

317 450

307 043

321 127

347 640

Index (2004 = 100)

Market share

100

36,9 %

97

32,4 %

101

38,6 %

110

41,8 %

(10) 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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(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 abovementioned 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 provi­
sional duties) (11) during the period considered in that investigation (2002 to 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 cooperating 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 to 2005).

Table 5

2004

2005

2006

RIP

Capacity in tonnes

366 062

344 872

378 931

412 916

Index (2004 = 100)

Capacity utilisation

100

86,8 %

94

89,3 %

103,5

85 %

112,7

84,4 %

3.2. Turnover and quantities sold

Table 6

2004

2005

2006

RIP

Turnover 000 EUR

391 259

388 502

403 189

443 540

Index (2004 = 100)

100

99

103

113

Sales in the Community (tonnes)

281 083

259 314

272 553

300 051

Index (2004 = 100)

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.

(11) See footnote 8.

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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.

Weighted average price (000 EUR/
tonne)

Index

Table 7

2004

1,39

100

Weighted average cost (EUR/tonne)

1,388

Index (2004 = 100)

100

3.4. Employment and wages

2005

1,50

107

1,511

109

2006

1,48

106

1,556

112

RIP

1,48

106

1,523

109,7

(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 8

2004

1 743

100

3 191

2005

1 660

95

3 411

2006

1 944

111,5

3 015

Employment

Index (2004 = 100)

Average labour cost/employee per
month

Index (2004 = 100)

100

107

94

RIP

2 053

118

2 859

90

3.5. Profitability

(34)

The profitability on sales (12) 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 9

Profitability

2004

0,3 %

2005

– 0,8 %

2006

– 5,4 %

RIP

– 3,2 %

(12) Profitability for companies with start-up operations which take place within or during part of the investigation period

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

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3.6. Investments

Table 10

Investments in 000 EUR

Index (2004 = 100)

2004

15 604

100

2005

16 580

106

2006

39 865

255

RIP

32 618

209

(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.

(36)

(37)

3.7. Conclusion in relation to the situation of producers

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

the
its

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 plants (13). 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.

(13) 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.

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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), 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:

Table 11

Net flow (comparing production and
mill consumption) 000 tonnes

2004

2005

2006

– 480

– 200

23

2007

258

2008

449

2009

541

(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
In the absence of evidence to support the association’s argument, the argument is
acquisition.
therefore dismissed.

4.4. Conclusion on the development of imports should measures be repealed

(46)

is therefore concluded that, given the incentives observed above,

It
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

(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,
likelihood, a significant quantity of dumped imports if anti-
dumping measures were to be removed.

in all

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(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 conse­
quence 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).

(52)

(53)

1. Level of cooperation of Community users

Sixteen 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 cooperation was obtained only from 10 users (14) representing around 12 %
of total Community consumption of PSF (all these users that have fully cooperated belong to the
non-woven and filling sectors). As regards the other users having partially cooperated, only one
operates in the spinning sector.

Furthermore, Gesamtverband Textil + Mode (the German federation of textile industries representing
both the spinning and the non-woven sectors), two associations belonging to the said federation:
Industrieverband Garne-Gewebe-Technische Textilien e.V. (IVGT) and Verband der Deutschen Heim­
textilien-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 representativity of
these associations corresponds to around 30 % of total Community consumption of PSF.

(54)

The level of cooperation 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.

(14) Libeltex, ORV, PGI Nonwovens, Ziegler, Tharreau, Sandler, Frankenstolz, Lück, TWE Vliesstoffwerke and IMP

Comfort.

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(56)

(57)

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.

In relation to these arguments, it should be pointed out that the information supplied by users that
have cooperated 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:

Table 12

2004

3,48 %

22,3 %

2005

4,07 %

24 %

2006

3,88 %

24 %

RIP

3,79 %

24 %

Profitability

Total costs of PSF as a percentage of
total costs

(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.

(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 13:

Table 13

2004

2005

2006

RIP

Turnover (000/EUR)

427 694

452 329

456 445

472 750

Index (2004 = 100)

100

106

107

111

(60)

(61)

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.

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
shown in Table 7 for PSF produced and sold within the
remained stable afterwards as
Community and in the Table 14 for imported PSF (15):

(15) 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.

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Table 14

2005

1,15

113

2004

1,02

100

2006

1,13

111

2007

1,15

113

1st quarter
2008

1,15

113

Prices 000 EUR/tonne

Index (2004 = 100)

(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 industry. Given the limited
level of full cooperation 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 15 it is shown that users that have fully
cooperated 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 cooperating users:

Employment

Index (2004 = 100)

Table 15

2004

3 898

100

2005

4 471

115

2006

4 854

125

RIP

5 009

129

(65) Although the number of companies that have cooperated 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)

(67)

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)) and
for which there is limited production in the Community whereas the PRC and Korea have large
production capacities.

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:

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Table 16

2004

Capacity Community industry HCS

67 050

Index (2004 = 100)

100

Capacity Community industry LMP

32 050

Index (2004 = 100)

100

2005

46 550

69

32 050

100

2006

61 550

92

32 050

100

RIP

61 550

92

32 050

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
2 009 150 000 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 cooperating 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.

Price HCS 000 EUR/tonne

Index (2004 = 100)

Price LMP '000 EUR/tonne

Index (2004 = 100)

Table 17

2004

1,21

100

1,31

100

2005

1,26

104

1,44

110

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 cooperating 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.

(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.

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2.2. Users against termination

G. OTHER CONSIDERATIONS

(73) Users

total Community
representing around 6 % of
consumption of PSF and 3 % of
imports from the
countries concerned have pointed out that the termi­
jeopardize the profitability of
nation of measures will
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.

(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
it has also been
profitability of recycling companies;
claimed that 425 000 people are employed in the
to
collection of polyethylene terephthalate in order
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.

fibre

staple

it has been pointed out by Community
(80) Moreover,
from
that making polyester
producers
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
from the PRC and Korea, would increase
particular
carbon emissions and set back the EU climate change
objectives.
is in any event recalled
it
that the Community interest analysis in anti-dumping
proceedings
impact of
measures on the economic operators concerned and is
not directly related to environmental concerns.

focuses on the

In this context

economic

(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.

(82)

H. CONCLUSION

In the light of the above, it can be concluded that the
Community producers of PSF, including the Community
industry, are benefiting from the measures in force but
in a vulnerable situation. During the period
are still
to increase
considered,
their
they have been able
turnover and the
market share, production, capacity,
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 no longer
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

(74)

(75)

(76)

(77)

In the light of the arguments developed under D.4 above
(likelihood of significant
imports should measures be
this could indeed
it
repealed),
occur, with the associated risks for the maintenance of
effective competition.

is not excluded that

3. Conclusion

it

the above factors,

Taking into account all of
is
concluded that, although most of the users that have
participated in the investigation consider that the main­
tenance of duties is against their interest, the investi­
gation shows that the continuation of measures would
not have a significantly negative effect on their economic
and financial
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 cooperated
in the investigation there is also a significant number
that is against the termination of duties.

situation. Moreover,

F. IMPORTERS AND TRADERS

initiation but only three of

Six importers/traders made submissions in relation to
this investigation within the deadline indicated in the
Notice of
them (Saehan
Europe, GSI Global Service International and Marubeni)
have fully cooperated 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
since Korean
other hand, according to their views,
unused capacities are more limited than Chinese, they
are of
the Korean
imports on prices will not be to the detriment of their
business.

the opinion that

the impact of

(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.

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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.

the Commission’s Decision not

to continue to
that
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 impo­
sition of anti-dumping duties on imports of PSF from
other countries.

(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 previous 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 diffi­
culties a substantial number of users.

the analysis of

(88)

(89)

(84)

is

therefore concluded that

It
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
countries
concerned on Community interest grounds would not
be justified.

from the

(90)

(86)

I. APPLICATION OF THE PRINCIPLE OF NON-DISCRIMI­
NATION

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 appli­
cation of the principle of non-discrimination, imports of
PSF from Taiwan and Malaysia were found to have been
dumped and causing injury in 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

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

the

tests

legal

the nature of

regarding
Second,
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
the Commission
interests at hand is so positive that
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 discrimi­
nation.

Third, even in the hypothetical situation of a definitive
decision taken by the Council concerning a non-impo­
sition of anti-dumping duties on imports of PSF originat­
ing in Malaysia and Taiwan, there would be no discrimi­
the said principle is
nation in this case, given that
applicable only if similar conclusions are reached for
different investigations concerning the same product. In
other words, compliance with the principle of non-discri­
mination 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
two
and Taiwan and,
situations are not comparable.

consequently,

the

(91) Having regard to the above the claims put forward in
relation to the application of the principle of non-discri­
mination 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.

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(93) On the basis of

the above facts and considerations,

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,

is concluded that,

it

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, 10 September 2008.

For the Council
The President

B. KOUCHNER