Proposal for a Council Regulation amending Regulation (EC) No 1487/2005 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of certain finished polyester filament fabrics originating in the People’s Republic of China
Date: 2010-03-31
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, import, man-made fibre, manufactured goods, originating product

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EUROPEAN COMMISSION 

Brussels, 31.3.2010 
COM(2010)123 final 

2010/0069 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1487/2005 imposing a definitive anti-dumping duty and 
definitively collecting the provisional duty imposed on imports of certain finished 
polyester filament fabrics originating in the People’s Republic of China  

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EXPLANATORY MEMORANDUM 

1) 

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CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  1225/2009  of 
30 November 2009 on protection against dumped imports from countries not members 
of  the  European  Community  ('the  basic  Regulation')  in  the  proceeding  concerning 
imports  of  certain  finished  polyester  filament  fabrics  originating  in  the  People’s 
Republic of China.  

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•  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  1487/2005  imposing  a  definitive  anti-dumping  duty  on 
imports  of  certain  finished  polyester  filament  fabrics  originating  in  the  People’s 
Republic of China. 

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•  Consistency with other policies and objectives of the Union 

Not applicable. 

2) 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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The  applicants  and  the  Union  industry  have  been  informed  of  the  findings  of  the 
examination  and  have  had  the  opportunity  to  submit  their  comments  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  make  provision  for  a  general  impact  assessment  but 
contains an exhaustive list of conditions that have to be assessed. 

3) 

LEGAL ELEMENTS OF THE PROPOSAL 

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305 

•  Summary of the proposed action 

By Regulation (EC) No 1487/2005 (OJ L 240, 16.9.2005, p. 1.), the Council imposed a 
definitive  anti-dumping  duty  on  imports  of  certain  finished  polyester  filament  fabrics 
originating in the People’s Republic of China.  

During  the  investigation  which  led  to  the  imposition  of  measures,  given  the  large 
number  of  exporting  producers  of  the  product  concerned  in  the  People's  Republic  of 
China, sampling was applied. 

Article  2  of  Council  Regulation  (EC)  No  1487/2005  gives  the  possibility  to  Chinese 
exporting producers which meet certain criteria to be granted the same treatment as the 
cooperating companies not included in the sample ('new exporting producer treatment' 
or 'NEPT'). 

One group of companies consisting of two companies involved in the production and 
sales  of  the  product  concerned  have  requested  new  exporting  producer  treatment  and 
their claims have been examined. 

It is therefore proposed that the Council adopts the attached proposal for a Regulation, 
which  sets  out  the  names  and  duty  rates  of  the  companies  to  which  new  exporting 
producer  treatment  is  granted.  The  Regulation  should  be  published  in  the  Official 
Journal of the European Union. 

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•  Legal basis 

Council  Regulation  (EC)  No  1225/2009  of  30  November  2009  on  protection  against 
dumped imports from countries not members of the European Community ('the basic 
Regulation').  

Council  Regulation  (EC)  No  1487/2005  imposing  a  definitive  anti-dumping  duty  on 
imports  of  certain  finished  polyester  filament  fabrics  originating  in  the  People’s 
Republic of China. 

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•  Subsidiarity principle 

The proposal falls under the exclusive competence of the European Union (EU). The 
subsidiarity principle therefore does not apply. 

•  Proportionality principle 

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

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Council  Regulation  (EC)  No  1487/2005  imposing  a  definitive  anti-dumping  duty  on 
imports  of  certain  finished  polyester  filament  fabrics  originating  in  the  People’s 
Republic of China leaves no scope for national decision. 

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

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•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason: 

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

BUDGETARY IMPLICATION 

The proposal has no implication for the EU budget. 

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4) 

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2010/0069 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1487/2005 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of certain finished 
polyester filament fabrics originating in the People’s Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community1 repealing 
Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against  dumped 
imports  from  countries  not  members  of  the  European  Community2  (the  'basic  Regulation'), 
and in particular Article 9 thereof, 

Having regard to Article 2 of Council Regulation (EC) No 1487/20053 of 12 September 2005 
imposing  a  definitive  anti-dumping  duty  on  imports  of  certain  finished  polyester  filament 
fabrics originating in the People’s Republic of China, 

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

Whereas: 

1. 

(1) 

MEASURES IN FORCE 

By  Regulation  (EC)  No  1487/2005,  the  Council  imposed  a  definitive  anti-dumping 
duty on imports into the European Union of woven fabrics of synthetic filament yarn 
containing 85 % or more by weight of textured and/or non-textured polyester filament, 
dyed (including dyed white) or printed, originating in the People’s Republic of China, 
currently falling within CN codes ex 5407 51 00, 5407 52 00, 5407 54 00, ex 5407 61 
10,  5407  61  30,  5407  61  90,  ex  5407  69  10  and  ex  5407  69  90  (the  product 
concerned).  

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OJ L 343, 22.12.2009, p.51. 
OJ L 56, 6.3.1996, p.1. 
OJ L 240, 16.9.2005, p. 1. 

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(2) 

(3) 

(4) 

(5) 

2. 

(6) 

(7) 

Given  the  large  number  of  cooperating  parties,  a  sample  of  Chinese  exporting 
producers  was  selected  during  the  investigation  which  led  to  the  imposition  of  the 
measures. 

The  sampled  companies  were  attributed  the  individual  duty  rates  established  during 
the investigation. The cooperating non-sampled companies which were granted market 
economy treatment ('MET'), in accordance with the provisions of Article 2(7)(c) of the 
Regulation  (EC)  No  384/96,  were  attributed  the  weighted  average  duty  of  14,1% 
which  was  established  for  the  sampled  companies  which  were  granted  MET.  The 
cooperating non-sampled companies which were granted individual treatment ('IT'), in 
accordance  with  the  provisions  of  Article  9(5)  of  the  same  Regulation,  received  the 
weighted  average  duty  of  37,1  %  established  for  the  sampled  companies  that  were 
granted IT. A countrywide duty of 56,2 % was imposed on all other companies. 

Following an anti-absorption reinvestigation pursuant to Article 12 of Regulation (EC) 
No 384/96, the Council, by Regulation (EC) No 1087/20074 increased the countrywide 
duty to 74,8%. Also, Chinese exporting producers with individual duty rates that did 
not  cooperate  in  the  reinvestigation  were  attributed  higher  anti-dumping  duties  in 
accordance with the provisions of Article 12(3) of Regulation (EC) No 384/96. 

Article 2 of Regulation (EC) No 1487/2005 gives the possibility to Chinese exporting 
producers  which  meet  the  four  criteria  set  out  in  that  Article  to  be  granted  the  same 
treatment as the one mentioned in recital (3) above for the cooperating companies not 
included in the sample ('New Exporting Producer Treatment' or 'NEPT'). 

NEW EXPORTING PRODUCERS’ REQUEST 

One  group  of  companies  consisting  of  two  related  companies,  namely  AlbaChiara 
Printing and Dyeing (Jiaxing) Co. Ltd, and Jiaxing E. Boselli Textile Trading Co. Ltd. 
('the applicant'), requested to be granted NEPT.  

An  examination  has  been  carried  out  to  determine  whether  the  applicant  fulfils  the 
criteria for being granted NEPT as set out in Article 2 of Council Regulation (EC) No 
1487/2005, by verifying that: 

(a) 

(b) 

(c) 

it  did  not  export  to  the  European  Union  the  product  concerned  during  the 
investigation  period  on  which  the  measures  are  based  (1  April  2003  to  31 
March 2004) (the first criterion), 

it is not related to any of the exporters or producers in the People's Republic of 
China  which  are  subject  to  the  anti-dumping  measures  imposed  by  that 
Regulation (the second criterion), 

it has actually exported to the European Union the product 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 of the product 
concerned to the European Union (the third criterion), 

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OJ L 246, 21.9.2007, p.1. 

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(d) 

it operates under market economy conditions defined in Article 2(7)(c) of the 
basic  Regulation  or  alternatively  that  it  fulfils  the  requirements  to  have  an 
individual  duty  in  accordance  with  Article  9(5)  of  the  basic  Regulation  (the 
fourth criterion). 

(8) 

(9) 

Questionnaires  were  sent  to  the  applicant  who  was  asked  to  supply  evidence  to 
demonstrate that it met the criteria (1) to (3) mentioned above.  

Since  the  fourth  criterion  implies  that  the  applicants  submit  a  claim  for  MET  and/or 
IT,  the  Commission  sent  MET  and  IT  claim  forms  to  the  applicant.  The  applicant 
requested MET pursuant to Article 2(7) of the basic Regulation.  

(10)  Briefly,  and  for  ease  of  reference  only,  the  MET  criteria  are  set  out  in  summarised 

form below: 

(a) 

(b) 

(c) 

(d) 

(e) 

Business  decisions  and  costs  are  made  in  response  to  market  signals  and 
without  significant  State  interference;  and  costs  of  major  inputs  substantially 
reflect market values. 

Firms have one clear set of basic accounting records which are independently 
audited in line with international accounting standards5 and are applied for all 
purposes. 

There  are  no  significant  distortions  carried  over  from  the  former  non-market 
economy system. 

Bankruptcy and property laws guarantee legal certainty and stability. 

Exchange rate conversions are carried out at market rates. 

(11)  Exporting producers fulfilling the criteria mentioned in recital (7) above may, pursuant 
to  Article  2  of  Council  Regulation  (EC)  No  1487/2005,  be  granted  either  the  14,1% 
duty  rate  applicable  to  companies  to  whom  MET  was  granted  in  accordance  with 
Article  2(7)(c)  of  Regulation  (EC)  No  384/96,  or  the  weighted  average  duty  rate  of 
37,1%  applicable  to  companies  to  whom  IT  was  granted  in  accordance  with  Article 
9(5) of the same Regulation. 

(12)  The  European  Commission  sought  and  verified  all  information  it  deemed  necessary 
for  the  purpose  of  the  determination  of  the  fulfilment  of  the  four  criteria  set  out  in 
Article 2 of Regulation (EC) No 1487/2005. Verification visits were carried out at the 
premises of the following companies:  

– 

– 

AlbaChiara Printing and Dyeing (Jiaxing) Co. Ltd, Jiaxing,  

Jiaxing E. Boselli Textile Trading Co. Ltd., Jiaxing. 

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International accounting standards refer to all major recognized international standards of accounting, including US GAAP and 

the works of the International Accounting Standard Committee Foundation ('IASCF') effectuated by the International Accounting 

Standards  Board  ('IASB'),  covering  the  International  Accounting  Standard  Board  Framework  ('IASBF'),  the  International 

Accounting Standard ('IAS'), the International Financial Reporting Standards ('IFRS') and the International Financial Reporting 

Interpretations Committee publications ('IFRIC'). 

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3. 

FINDINGS 

(13)  The  applicant  provided  sufficient  evidence  to prove  that  it  meets  all  the  four  criteria 
mentioned  at  recital  (7)  above.  The  applicant  in  fact  could  prove  that  i)  it  did  not 
export to the European Union the product concerned during the period 1 April 2003 to 
31 March 2004, ii) it is not related to any of the exporters or producers in the People’s 
Republic  of  China  which  are  subject  to  the  anti-dumping  measures  imposed  by 
Regulation  (EC)  No  1487/2005,  iii)  it  actually  exported  a  significant  quantity  of  the 
product concerned to the European Union starting from the year 2008, iv) it fulfils all 
the  requirements  for  MET  and  can  therefore  be  granted  an  individual  duty  in 
accordance with Article 2(7)(c) of the basic Regulation. Therefore, the applicant could 
be granted the  weighted average  duty  rate for companies granted MET applicable to 
the cooperating companies not included in the sample (i.e. 14,1%) in accordance with 
Article  2  of  Regulation  (EC)  No  1487/2005,  and  should  be  added  to  the  list  of 
exporting producers in Article 1(2) of that Regulation. 

4. 

(14) 

MODIFICATION  OF  THE  LIST  OF  COMPANIES  BENEFITING  FROM 
INDIVIDUAL DUTY RATES 

In consideration of the findings of the investigation as indicated in recital (13) above, 
it is concluded that the companies AlbaChiara Printing and Dyeing (Jiaxing) Co. Ltd, 
and  Jiaxing  E.  Boselli  Textile  Trading  Co.  Ltd.  should  be  added  to  the  list  of 
individual  companies  mentioned  under  Article  1(2)  of  Council  Regulation  (EC)  No 
1487/2005 with a duty rate of 14,1%. 

(15)  The  applicant  and  the  Union  industry  have  been  informed  of  the  findings  of  the 
investigation  and  have  had  the  opportunity  to  submit  their  comments.  No  additional 
information was brought forward permitting to lead to any different conclusion for the 
applicant, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Article  1(2)  of  Council  Regulation  (EC)  No  1487/2005  shall  be  amended  by  adding  the 
following companies in the table of companies with individual duty rates: 

Company 

Definitive 
anti-dumping 
duty  

TARIC 
additional code 

AlbaChiara Printing and Dyeing (Jiaxing) Co. Ltd 

14,1% 

A617 

Jiaxing E. Boselli Textile Trading Co. Ltd. 

14,1% 

A617 

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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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