Proposal for a COUNCIL REGULATION (EU) No …/… amending Regulations (EC) No 1292/2007 and (EC) No 367/2006 (imposing definitive anti-dumping and countervailing duties on imports of polyethylene terephthalate (PET) film originating in India, and maintaining the extension of those duties to imports of polyethylene terephthalate (PET) film consigned from, inter alia, Israel), granting an exemption from those measures to one Israeli exporter and terminating the registration of imports from that exporter
Date: 2010-08-16
Institutions: European Commission
Subjects: India, anti-dumping duty, anti-dumping legislation, import, originating product, plastics

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EUROPEAN COMMISSION 

Brussels, 16.8.2010 
COM(2010) 432 final 

2010/0233 (NLE) 

Proposal for a 

COUNCIL REGULATION (EU) No …/… 

amending Regulations (EC) No 1292/2007 and (EC) No 367/2006 (imposing definitive 
anti-dumping and countervailing duties on imports of polyethylene terephthalate (PET) 
film originating in India, and maintaining the extension of those duties to imports of 
polyethylene terephthalate (PET) film consigned from, inter alia, Israel), granting an 
exemption from those measures to one Israeli exporter and terminating the registration 
of imports from that exporter 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This proposal concerns the application of Council Regulations (EC) No 1225/2009 of 
30 November 2009 on protection against dumped imports from countries not members 
of the European Community (‘the basic anti-dumping Regulation’) and No 597/2009 of 
11 June 2009 on protection against subsidised imports from countries not members of 
the  European  Community  ('the  basic  anti-subsidy  Regulation')  in  the  proceeding 
concerning  imports  of  polyethylene  terephthalate  (PET)  film  originating  in  India, 
extended  to  imports  of  PET  film  consigned  from,  inter  alia,  Israel,  following  a  'new 
exporter' review. 

•  General context 

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

•  Existing provisions in the area of the proposal 

Council  Regulations  (EC)  No  1292/2007  imposing  definitive  anti-dumping  duties  on 
imports of PET film originating in India, extended to imports of PET film consigned 
from,  inter  alia,  Israel  and  No  367/2006  imposing  definitive  countervailing  duties  on 
imports of PET film originating in India, extended to imports of PET film from, inter 
alia, Israel. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION  OF 
ASSESSMENT 

INTERESTED 

PARTIES  AND 

IMPACT 

•  Consultation of interested parties 

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

•  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 Regulations. 

The basic Regulations do not provide for a general impact assessment but contain an 

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exhaustive list of conditions that have to be assessed. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  6  January  2010,  the  Commission  initiated,  following  a  request  of  an  Israeli 
exporter,  a  'new  exporter'  review  of  Regulations  (EC)  No  1292/2007  imposing 
definitive anti-dumping duties on imports of PET film originating in India, extended to 
imports  of  PET  film  consigned  from,  inter  alia,  Israel  and  No  367/2006  imposing 
definitive countervailing duties on imports of PET film originating in India, extended 
to imports of PET film from, inter alia, Israel. 

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  definitive  findings 
which  showed  that  the  Israeli  exporter  did  not  export  PET  film  to  the  EU  during  the 
original investigation period (2003). A full manufacturing operation was found for the 
production of PET film and then transformation of this film into food packaging and 
other items. No evidence of any links of companies in India manufacturing PET film 
was found.  

It is therefore proposed that the Council adopts the attached proposal for a Regulation 
in  order  to  grant  an  exemption  to  the  Israeli  exporter  from  the  anti-dumping  and 
countervailing duties applicable to imports of PET film consigned from Israel.  

•  Legal basis 

Council Regulations (EC) No 1225/2009 of 30 November 2009 on protection against 
dumped  imports  from  countries  not  members  of  the  European  Community  and  No 
597/2009 of 11 June 2009 on protection against subsidised imports from countries not 
members of the European Community.  

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  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 Regulations and leaves 
no scope for national decision. 

Indication of how financial and administrative burden falling upon the Union, 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 instrument: Regulation. 

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Other means would not be adequate for the following reason: 

Other means would not be adequate because the basic Regulations do not provide for 
alternative options. 

4. 

BUDGETARY IMPLICATION 

The proposal has no significant implication for the Union budget.  

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2010/0233 (NLE) 

Proposal for a 

COUNCIL REGULATION (EU) No …/… 

amending Regulations (EC) No 1292/2007 and (EC) No 367/2006 (imposing definitive 
anti-dumping and countervailing duties on imports of polyethylene terephthalate (PET) 
film originating in India, and maintaining the extension of those duties to imports of 
polyethylene terephthalate (PET) film consigned from, inter alia, Israel), granting an 
exemption from those measures to one Israeli exporter and terminating the registration 
of imports from that exporter 

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 ('the basic 
anti-dumping Regulation') and in particular Articles 11(4) and 13(4) thereof,  

Having  regard  to  Council  Regulation  (EC)  No  597/2009  of  11  June  2009  on  protection 
against  subsidised  imports  from  countries  not  members  of  the  European  Community2  (‘the 
basic anti-subsidy Regulation’) and in particular Articles 20, 23(5) and (6) thereof,  

Having  regard  to  the  proposal  from  the  European  Commission  ('Commission')  after 
consulting the Advisory Committee, 

Whereas: 

A. MEASURES IN FORCE 

(1) 

The Council, by Regulations (EC) No 1676/20013 and (EC) No 2597/19994 imposed 
anti-dumping and countervailing measures respectively on PET film originating, inter 
alia, in India (‘the original measures’). By Regulations (EC) No 1975/20045 and (EC) 
No  1976/20046,  the  Council  extended  these  measures  to  PET  film  consigned  from 
Israel  and  from  Brazil  (‘the  extended  measures’)  with  the  exception  of  imports 
produced by one Brazilian company, Terphane Ltd, and one Israeli company, Jolybar 
Ltd, specifically mentioned in each of those regulations.  

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OJ L 343, 22.12.2009, p. 51. 
OJ L 188, 18.7.2009, p. 93. 
OJ L 227, 23.8.2001, p. 1. 
OJ L 316, 10.12.1999, p. 1. 
OJ L 342, 18.11.2004, p. 1. 
OJ L 342, 18.11.2004, p. 8. 

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(2) 

(3) 

(4) 

By  Regulation  (EC)  No  101/20067  the  Council  amended  Regulations  (EC)  No 
1975/2004  and  (EC)  No  1976/2004  in  order  to  exempt  one  other  Israeli  company, 
Hanita Coatings Rural Cooperative Association Ltd, from the extended measures.  

Following an expiry review of the anti-dumping measures, the Council, by Regulation 
(EC) No 1292/20078 ('Regulation (EC) No 1292/2007') imposed an anti-dumping duty 
on  imports  of  polyethylene  terephthalate  (PET)  film  originating  in  India  and 
maintained the extension of that duty to imports of the same product consigned from 
Brazil and from Israel, whether declared as originating in Brazil or Israel or not, with 
the  exception  of  certain  producers  specified  in  Articles  2(4)  of  that  Regulation  ('the 
anti-dumping measures in force').  

Following  an  expiry  review  of  the  countervailing  measures,  the  Council,  by 
Regulation  (EC)  No  367/20069  ('Regulation  (EC)  No  367/2006')  imposed  a 
countervailing duty on imports of polyethylene terephthalate (PET) film originating in 
India  and  maintained  the  extension  of  that  duty  to  imports  of  the  same  product 
consigned  from  Brazil  and  from  Israel,  whether  declared  as  originating  in  Brazil  or 
Israel or not, with the exception of certain producers specified in Article 1(3) of that 
Regulation  ('the  countervailing  measures  in  force').  The  anti-dumping  measures  in 
force and the countervailing measures in force shall hereinafter together be referred to 
as 'the anti-dumping and countervailing measures in force'. 

(5) 

Regulations (EC) No 1292/2007 and (EC) No 367/2006 were last amended by Council 
Regulation (EC) No 15/200910. 

B. CURRENT INVESTIGATION  

1. Request for a review 

(6) 

The Commission subsequently received a request for an exemption from the extended 
measures  pursuant  to  Articles  11(4)  and  13(4)  of  the  basic  anti-dumping  Regulation 
and Articles 20, 23(5) and 23(6) of the basic anti-subsidy Regulation. The application 
was  lodged  by  S.Z.P.  Plastic  Packaging  Products  Ltd.  (‘SZP’),  a  producer  in  Israel 
(‘the country concerned’).  

2. Initiation of a review 

(7) 

The Commission examined the evidence submitted by SZP and considered it sufficient 
to justify the initiation of an investigation pursuant to Articles 11(4) and 13(4) of the 
basic  anti-dumping  Regulation  and  Articles  20,  23(5)  and  23(6)  of  the  basic  anti-
subsidy Regulation for the purposes of determining the possibility of granting SZP an 
exemption  from  the  extended  measures.  After  consultation  of  the  Advisory 
Committee, and after the Union industry concerned had been given the opportunity to 
comment,  the  Commission  initiated,  by  Regulation  (EU)  No  6/201011  ('the  initiating 
Regulation'), a review of Regulations (EC) No 1292/2007 and (EC) No 367/2006 with 
regard to SZP.  

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OJ L 17, 21.1.2006, p. 1. 
OJ L 288, 6.11.2007, p. 1. 
OJ L 68, 8.3.2006, p. 15. 
OJ L 6, 10.1. 2009, p.1. 
OJ L 2, 6.1.2010, p. 5. 

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(8) 

The  Regulation  initiating  the  review  repealed  the  anti-dumping  duty  imposed  by 
Regulation  (EC)  No  1292/2007  with  regard  to  imports  of  the  product  under 
investigation consigned from Israel by SZP. Simultaneously, pursuant to Article 14(5) 
of  the  basic  anti-dumping  Regulation,  customs  authorities  were  directed  to  take 
appropriate steps to register such imports.  

3. Product concerned 

(9) 

(10) 

The  product  concerned  is  the  same  as  that  defined  in  the  regulations  imposing  the 
original  measures,  being  polyethylene  terephthalate  (PET)  film  originating  in  India, 
currently  falling  within  CN  codes  ex  3920  62  19  and  ex  3920  62  90  (‘the  product 
concerned’). 

It is considered that the PET film consigned from Israel to the Union under CN codes 
ex  3920  62  19  and  ex  3920  62  90  (‘the  product  under  review’)  has  the  same  basic 
technical,  physical  and  chemical  characteristics  and  the  same  uses  as  the  product 
concerned.  Therefore,  it  is  considered  to  be  a  like  product  within  the  meaning  of 
Article  1(4)  of  the  basic  anti-dumping  Regulation  and  Article  2(c)  of  the  basic  anti-
subsidy Regulation.  

4. Investigation 

(11)  The  Commission  officially  advised  SZP  and  the  representatives  of  the  country 
concerned of the initiation of the review. Interested parties were invited to make their 
views  known  and  informed  of  the  possibility  to  request  a  hearing.  No  such  request 
was, however, received.  

(12)  The  Commission  also  sent  a  questionnaire  to  SZP  and  received  a  reply  within  the 
relevant  deadline.  The  Commission  sought  and  verified  all  the  information  deemed 
necessary  for  the  purposes  of  the  review.  A  verification  visit  was  carried  out  at  the 
premises of SZP.  

5. Investigation period 

(13)  The investigation covered the period from 1 January 2009 to 31 December 2009 (‘the 
IP’). Data was collected from 2006 up to the end of the IP to investigate any change in 
the pattern of trade.  

C. RESULTS OF THE INVESTIGATION 

(14)  The investigation confirmed that SZP did not export the product under review to the 
European  Union  during  the  investigation  period  of  the  investigation  that  led  to  the 
extended  measures,  i.e.  1  January  to  31  December  2003.  SZP's  first  exports  of  the 
product under review occurred subsequent to the extension of measures to, inter alia, 
Israel.  

(15)  Furthermore,  according  to  documentary  evidence  submitted,  SZP  was  able  to 
satisfactorily demonstrate that it did not have any direct or indirect links with any of 
the  Indian  exporting  producers  or  Israeli  companies  subject  to  the  anti-dumping  and 
countervailing measures in force.  

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(16)  As already mentioned at recital (14), SZP did not export the product concerned to the 
Union  until  after  the  period  of  investigation  that  led  to  the  extended  measures.  SZP 
manufactures PET film and either sells this film or uses it itself to produce a range of 
packaging products. 

(17)  Raw  material  of  Indian  origin,  amongst  others,  is  used  by  SZP  to  manufacture  PET 
film  exported  to  the  Union  but  this  was  not  considered  to  be  a  process  involving 
circumvention. The Indian raw material constituted only a small proportion of the raw 
material bought at arms-length by SZP and was mixed with other raw materials which 
were  mainly  purchased  domestically.  The  Indian  producer  of  the  raw  material  is  a 
long-standing supplier to SZP.  

(18) 

In addition no evidence was found that SZP was purchasing finished  PET  film  from 
India to resell or tranship to the European Union. 

D. AMENDMENT OF THE MEASURES BEING REVIEWED 

(19) 

In  accordance  with  the  above  findings  that  SZP  has  not  engaged  in  circumvention 
practices, the company should be exempted from the anti-dumping and countervailing 
measures in force.  

(20)  The registration of imports of PET film consigned from Israel by SZP, as imposed by 
the initiating Regulation, should cease. In accordance with Article 14(5) of the basic 
anti-dumping  Regulation,  which  provides  that  measures  shall  be  applied  against 
registered imports from the date of registration, and in view of the exemption of the 
company from measures, no anti-dumping duty should be collected on imports of PET 
film  consigned  from  Israel  by  SZP  which  entered  the  Union  under  registration 
imposed by the initiating Regulation.  

(21) 

In  regard  to  the  countervailing  measures,  as  the  company  has  been  found  not  to  be 
circumventing the measures in force, the exemption should take effect from the date of 
entry into force of Commission Regulation (EU) N° 6/2010 in accordance with Article 
23(6) of the basic anti-subsidy Regulation. Repayment or remission must be requested 
from national customs authorities in accordance with applicable customs legislation. 

(22)  The  exemption  from  the  extended  measures  granted  to  PET  film  produced  by  SZP 
shall,  in  accordance  with  Article  13(4)  of  the  basic  anti-dumping  Regulation  and 
Article 23(6) of the basic anti-subsidy Regulation, remain valid on condition that the 
facts  as  finally  ascertained  justify  the  exemption  and  that  it  is  for  instance  not 
established  that  the  exemption  was  granted  on  the  basis  of  false  or  misleading 
information  submitted  by  the  company  concerned.  Should  prima  facie  evidence 
indicate otherwise, an investigation may be initiated by the Commission to establish if 
withdrawal of the exemption is warranted.  

(23)  The  exemption  from  the  extended  measures  of  imports  of  PET  film  from  SZP  was 
established on the basis of the findings of the present review. This exemption is thus 
exclusively applicable to imports of PET film consigned from Israel and produced by 
that specific legal entity. Imported PET film produced or consigned by any company 
not  specifically  mentioned  in  Article  2(4)  of  Regulation  (EC)  No  1292/2007  and 
Article  1(3)  of  Regulation  (EC)  No  367/2006  with  its  name  and  address,  including 
entities related to those specifically mentioned, cannot benefit from the exemption and 
should be subject to the residual duty rate as imposed by these Regulations. 

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E. PROCEDURE 

(24)  SZP and all other interested parties were informed of the facts and considerations on 
the  basis  of  which  it  was  intended  to  grant  an  exemption  to  SZP  from  the  extended 
measures. No comments were received,  

HAS ADOPTED THIS REGULATION: 

Article 1 

1. Article 2(4) of Regulation (EC) No 1292/2007 shall be modified by adding the following 
company to the list of companies that produce polyethylene terephthalate film in Brazil and 
Israel  and  whose  imports  of  polyethylene  terephthalate  film  are  exempted  from  the 
application of the extended definitive residual anti-dumping duty:  

S.Z.P.  Plastic  Packaging  Products  Ltd,  PO  Box  53,  Shavei  Zion,  22086  Israel  (TARIC 
additional code A964). 

2.  Article  1(3)  of  Regulation  (EC)  No  367/2006  shall  be  modified  by  adding  the  following 
company to the list of companies that produce polyethylene terephthalate film in Brazil and 
Israel  and  whose  imports  of  polyethylene  terephthalate  film  are  exempted  from  the 
application of the extended definitive countervailing duty:  

S.Z.P.  Plastic  Packaging  Products  Ltd,  PO  Box  53,  Shavei  Zion,  22086  Israel  (TARIC 
additional code A964). 

This  exemption  shall  be  applicable  from  the  date  of  entry  into  force  of  Commission 
Regulation (EU) N° 6/2010, namely 7 January 2010. Countervailing duties which have been 
levied from that date shall be reimbursed to the importer or importers concerned. Repayment 
or  remission  shall  be  requested  from  national  customs  authorities  in  accordance  with 
applicable customs legislation. 

Article 2 

The  customs  authorities  are  hereby  directed  to  cease  the  registration  of  imports  carried  out 
pursuant to Article 3 of Commission Regulation (EU) No 6/2010. No anti-dumping duty shall 
be collected on the imports thus registered.  

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

Article 3 

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

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Done at Brussels, […] 

For the Council 
The President 
[…] 

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