Proposal for a Council Regulation amending Council Regulation (EC) No 1425/2006 imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags originating in the People's Republic of China or Thailand, and terminating the proceeding on imports of certain plastic sacks and bags originating in Malaysia
Date: 2009-02-13
Institutions: European Commission
Subjects: China, Thailand, anti-dumping duty, anti-dumping legislation, import, leather industry, packaging product, plastics

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.2.2009 
COM(2009) 60 final 

Proposal for a 

COUNCIL REGULATION 

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

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

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Grounds for and objectives of the proposal 

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

120 

General context 

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

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Existing provisions in the area of the proposal 

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

As last amended by Council Regulation (EC) 1356/20074. 

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

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Consistency with other policies and objectives of the Union 

Not applicable. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

OJ L 56, 6.3.1996, p. 1. 
OJ L 340, 23.11.2005, p. 17. 
OJ L 270, 29.09.2006, p. 4. 
OJ L 304, 22.11.2007, p. 5. 

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

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

LEGAL ELEMENTS OF THE PROPOSAL 

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Summary of the proposed action 

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

During  the  investigation  that  led  to  the  imposition  of  the  anti-dumping  duty  (the 
'original investigation'), given the large  number of exporters/producers of the product 
concerned  in  the  PRC  and  Thailand,  a  sample  of  exporting  producers  was  chosen. 
Individual  duty  rates  ranging  from  4.8%  to  14.3%  were  imposed  on  the  companies 
selected  in  the  sample  in  the  PRC  and  Thailand.  The  cooperating  companies  not 
included in the sample were attributed a duty rate of 8.4% for the PRC and 7.9% for 
Thailand.  Residual  duty  rates  of  28.8%  for  the  PRC  and  14.3%  for  Thailand  were 
imposed on all other companies. 

Article  2  of  Council  Regulation  (EC)  No  1425/2006  gives  the  possibility  to  any  new 
exporting Chinese or Thai producer which meets the criteria set out in that Article to be 
granted the same treatment as the co-operating companies not included in the sample 
(‘new exporting producer treatment’ or 'NEPT'). 

Seven  applicants  (five  Chinese  and  two  Thai)  have  requested  NEPT.  Only  three 
Chinese  companies  provided  evidence  which  was  considered  sufficient  to  amend 
Council Regulation (EC) No 1425/2006 by adding their names to the list of companies 
subject to the weighted average duty rate of 8.4%. 

The applications of the remaining companies were rejected for the following reasons:  

•  two Chinese companies did not reply to the application form or the questionnaire; 

•  one Thai company provided misleading information; and  

•  another Thai company exported the product concerned to the Community during the 

investigation period of the original investigation. 

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

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Legal basis 

Council  Regulation  (EC)  No  384/96  and  Article  2  of  Council  Regulation  (EC)  No 
1425/2006.  

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Subsidiarity principle 

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

Proportionality principle 

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

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

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

Choice of instruments 

Proposed instruments: regulation. 

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

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

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BUDGETARY IMPLICATION 

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The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

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

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to Council Regulation (EC) No 384/1996 of 22 December 1995 on protection 
against dumped imports from countries not members of the European Community (‘the basic 
Regulation’)5, 

Having regard to Article 2 of Council Regulation (EC) No 1425/20066 of 25 September 2006 
imposing a definitive anti-dumping duty on imports of certain plastic sacks and bags 
originating in the People's Republic of China and Thailand, and terminating the proceeding on 
imports of certain plastic sacks and bags originating in Malaysia, 

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

Whereas: 

A. PREVIOUS PROCEDURE 

(1) 

By  Regulation  (EC)  No  1425/2006,  the  Council  imposed  a  definitive  anti-dumping 
duty  on  imports  into  the  Community  of  certain  plastic  sacks  and  bags  falling  within 
CN codes ex 3923 21 00 (TARIC code 3923 21 00 20), ex 3923 29 10 (TARIC code 
3923 29 10 20) and ex 3923 29 90 (TARIC code 3923 29 90 20), originating in the 
People's  Republic  of  China  ('PRC')  and  Thailand.  Given  the  large  number  of  co-
operating  exporting  producers  in  the  investigation  that  led  to  the  imposition  of  the 
anti-dumping  duty  ('the  original  investigation'),  a  sample  of  Chinese  and  Thai 
exporting  producers  was  selected  and  individual  duty  rates  ranging  from  4.8%  to 
14.3%  were  imposed  on  the  companies  included  in  the  samples,  while  other  co-
operating companies not included in the sample were attributed a duty rate of 8.4% for 
the  PRC  and  7.9%  for  Thailand.  Duty  rates  of  28.8%  for  the  PRC  and  14.3%  for 
Thailand were imposed on companies which either did not make themselves known or 
did not cooperate with the investigation. 

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OJ L 56, 6.3.1996, p. 1.  
OJ L 270, 29.09.2006, p. 4. 

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(2) 

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

•  it did not export to the Community the products described in Article 1(1) of that 
Regulation during the investigation period (1 April 2004 to 31 March 2005) ('the 
investigation period') (the first criterion);  

•  it is not related to any of the exporters or producers in the PRC or Thailand which 
are subject to the anti-dumping measures imposed by that Regulation (the second 
criterion); and  

•  it  has  actually  exported  to  the  Community  the  products  concerned  after  the 
investigation  period  on  which  the  measures  are  based,  or  it  has  entered  into  an 
irrevocable  contractual  obligation  to  export  a  significant  quantity  to  the 
Community (the third criterion);  

then  Article  1  of  that  Regulation  can  be  amended  by  granting  the  new  exporting 
producer the duty rate applicable to the co-operating companies not included in the 
sample, i.e. 8.4% for Chinese companies and 7.9% for Thai companies. 

B. NEW EXPORTING PRODUCERS’ REQUESTS 

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

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

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

Two Chinese companies requesting new exporting producer treatment did not provide 
the  requested  information.  It  was  therefore  not  possible  to  verify  whether  these 
companies  fulfilled  the  criteria  set  out  in  Article  2  of  Council  Regulation  (EC)  No 
1425/2006, and their requests had to be rejected. 

One  Thai  company  provided  misleading  information  and  its  request  was  therefore 
rejected.  

One  Thai  company  exported  the  product  concerned  to  the  Community  during  the 
investigation  period.  It  thus  did  not  meet  the  first  criterion  and  its  request  was 
therefore rejected. 

The  evidence  provided  by  the  remaining  three  Chinese  exporting  producers  is 
considered sufficient to show that they fulfil the criteria set out in Article 2 of Council 
Regulation (EC) No 1425/2006 and therefore to grant them the duty rate applicable to 
the co-operating companies not included in the sample (8.4% for Chinese companies) 
and consequently to add their names to the list of exporting producers in Annex I to 
Council Regulation (EC) No 1425/2006. 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

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(10)  The  applicants  and  the  Community  industry  were  informed  of  the  findings  of  the 

examination and were given the opportunity to submit their comments. 

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

taken into account where warranted, 

HAS ADOPTED THIS REGULATION: 

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

Article 1 

Company 

City 

Huiyang  Kanlun  Polyethylene  Manufacture 
Factory  

Huizhou 

Bao  Xiang  Plastic  Bag  Manufacturing 
(Shenzhen) Co., Ltd. 

Shenzhen 

Quanzhou Polywin Packaging Co. Ltd  

Nanan  

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

Article 2 

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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