Proposal for a COUNCIL REGULATION terminating the partial interim review of the anti-dumping measures applicable to imports of certain polyethylene terephthalate originating, inter alia, in the Republic of Korea
Date: 2011-01-28
Institutions: European Commission
Subjects: South Korea, anti-dumping duty, anti-dumping legislation, import

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EUROPEAN COMMISSION 

Brussels, 28.1.2011 
COM(2011) 24 final 

2011/0008 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the anti-dumping measures applicable to 
imports of certain polyethylene terephthalate originating, inter alia, in the Republic of 
Korea  

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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  Regulation  (EC)  No  1225/2009  of 
30 November 2009 on protection against dumped imports from countries not members 
of  the  European  Community1  (‘the  basic  Regulation’)  in  the  partial  interim  review 
concerning imports of certain polyethylene terephthalate originating in, inter alia, the 
Republic of Korea. 

•  General context 

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

•  Existing provisions in the area of the proposal 
In February 2007, the Council, by Regulation (EC) No 192/20072, imposed a definitive 
anti-dumping duty on imports of certain polyethylene terephthalate originating in India, 
Indonesia, Malaysia, the Republic of Korea, Thailand and Taiwan following an expiry 
review and partial interim review.  

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT 
ASSESSMENT 

•  Consultation of interested parties 

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

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

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

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

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

1 
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OJ L 343, 22.12.2009, p. 51 
OJ L 59, 27.2.2007, p. 1. 

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On 25 February 2010, the Commission initiated a partial interim review of Regulation 
(EC)  192/2007  imposing  a  definitive  anti-dumping  duty  on  imports  of  certain 
polyethylene  terephthalate  originating  in  India,  Indonesia,  Malaysia,  the  Republic  of 
Korea, Thailand and Taiwan following an expiry review and partial interim review.  

(1) 

(2) 

(3) 

A  request  for  a  partial  interim  review  pursuant  to  Article  11(3)  of  the  basic 
Regulation was lodged by the Polyethylene Terephthalate (PET) Committee of 
PlasticsEurope ('the applicant'), representing seven Union producers.  

The request was limited in  scope  to  the examination  of dumping as  far as the 
exporting  producer  KP  Chemical  Group,  composed  of  Honam  Petrochemicals 
Corp.  and  KP  Chemical  Corp.  ('KP  Chemical  Group')  is  concerned,  and  of 
certain injury aspects. 

The  review  investigation  showed  a  dumping  margin  at  a  de  minimis  level  for 
the KP Chemical Group. No indications were found that this de minimis margin 
would not be of a lasting nature, as the KP Chemical Group has been found to 
operate at a very high capacity utilisation rate (almost 100%). In addition, the 
KP  Chemical  Group  has  no  plans  to  increase  their  production  capacity  in  the 
Republic of Korea. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation 
terminating the partial interim review without amending the measures in force.  

•  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. 

•  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 Regulation 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. 

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

4. 

BUDGETARY IMPLICATION  

The proposal has no implication for the Union budget. 

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2011/0008 (NLE) 

Proposal for a 

COUNCIL REGULATION 

of 

terminating the partial interim review of the anti-dumping measures applicable to 
imports of certain polyethylene terephthalate originating, inter alia, in the Republic of 
Korea  

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 Community3 (‘the basic 
Regulation’), and in particular Article 11(3) thereof, 

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

Whereas: 

1.  Measures in force 

A. PROCEDURE 

(1) 

(2) 

(3) 

(4) 

The  measures  currently  in  force  are  a  definitive  anti-dumping  duty  imposed  by 
Council  Regulation  (EC)  No  192/20074  on  imports  of  certain  polyethylene 
terephthalate  originating,  inter  alia,  in  the  Republic  of  Korea.  For  the  Korean 
companies  with  individual  duties,  the  duties  in  force  are  zero.  The  residual  duty  is 
148.3 EUR/tonne. 

2.  Request for a review 

A request for a partial interim review pursuant to Article 11(3) of the basic Regulation 
was  lodged  by  the  Polyethylene  Terephthalate  (PET)  Committee  of  PlasticsEurope 
('the applicant'), representing seven Union producers.  

The request was limited in scope to the examination of dumping as far as the exporting 
producer  KP  Chemical  Group,  composed  of  Honam  Petrochemicals  Corp.  and  KP 
Chemical Corp. ('KP Chemical Group') is concerned, and of certain injury aspects. 

The  applicant  provided  prima  facie  evidence  showing  that,  as  far  as  KP  Chemical 
Group  is  concerned,  the  continued  imposition  of  the  measure  at  the  current  level  of 
zero, is no longer sufficient to counteract the current injurious dumping. 

3. 

Initiation of a partial interim review 

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OJ L 343, 22.12.2009, p. 51. 
OJ L 59, 27.2.2007, p. 1. 

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(5) 

(6) 

(7) 

(8) 

(9) 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed to justify the initiation of a partial interim review, the Commission announced, 
by a notice published in the Official Journal of the European Union5 the initiation of a 
partial interim review in accordance with Article 11(3) of the basic Regulation, limited 
to  the  examination  of  dumping  and  of  certain  injury  aspects  insofar  as  the  KP 
Chemical Group is concerned.  

4. 

Product concerned and like product 

The product under review is polyethylene terephthalate having a viscosity number of 
78 ml/g or higher, according to the ISO Standard 1628-5, currently falling within CN 
code 3907 60 20 and originating in the Republic of Korea ('the product concerned'). 

The product concerned and sold on the Korean domestic market and that exported to 
the Union has the same basic physical, technical and chemical characteristics and uses 
and is therefore considered to be alike within the meaning of Article 1(4) of the basic 
Regulation. 

5. 

Parties concerned 

The  Commission  officially  advised  the  exporting  producer,  representatives  of  the 
exporting  country,  Union  producers  and  the  applicant  of  the  initiation  of  the  partial 
interim  review.  Interested  parties  were  given  the  opportunity  to  make  their  views 
known  in  writing  and  to  request  a  hearing  within  the  time  limit  set  in  the  notice  of 
initiation.  All  interested  parties  who  so  requested  and  showed  that  there  were 
particular reasons why they should be heard, were granted a hearing.  

The Commission sent questionnaires to the exporting producer and the Union industry 
and received replies within the deadlines set for that purpose. The Commission sought 
and  verified  all  information  deemed  necessary.  The  Commission  carried  out 
verification  visits  at  the  premises  of  the  KP  Chemical  Corp.,  Republic  of  Korea; 
Honam  Petrochemicals  Corp,  Republic  of  Korea;  Novapet  SA,  Spain;  Equipolymers 
Srl,  Italy;  UAB  Orion  Global  PET  (Indorama),  Lithuania;  UAB  Indorama  Polymers 
Europe,  Lithuania;  UAB  Neo  Group,  Lithuania;  La  Seda  de  Barcelona,  S.A.,  Spain 
and M&G Polimeri Italia SpA, Italy;  

6.  Review investigation period 

(10)  The investigation of dumping covered the period from 1 January 2009 to 31 December 

2009 ('review investigation period').  

B. RESULTS OF THE INVESTIGATION 

Normal value 

(11)  As  far  as  the  determination  of  normal  value  is  concerned,  the  Commission  first 
established  whether  the  total  domestic  sales  of  the  product  concerned  made  by  KP 
Chemical  Group  were  representative  in  comparison  with  its  total  export  sales  to  the 
Union.  In  accordance  with  Article  2(2)  of  the  basic  Regulation,  domestic  sales  are 
considered  representative  when  the  total  domestic  sales  volume  is  at  least  5%  of  the 
total export sales volume to the Union. The Commission established that the product 
concerned,  which  was  considered  a  homogenous  product  and  not  subdivided  into 
different  product  types,  was  sold  domestically  by  KP  Chemical  Group  in  overall 
representative volumes.  

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OJ C 47, 25.2.2010, p. 24. 

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(12)  An examination was also made as to whether the sales of the product concerned sold 
domestically in representative quantities could be regarded as having been made in the 
ordinary  course  of  trade,  by  establishing  the  proportion  of  profitable  sales  to 
independent  customers  on  the  domestic  market.  As  it  was  found  that  there  were 
sufficient sales in the ordinary course of trade, normal value was based on the actual 
domestic price of profitable sales. 

Export price 

(13)  As  the  product  concerned  was  exported  directly  to  independent  customers  in  the 
Union,  the  export  price  was  established  in  accordance  with  Article  2(8)  of  the  basic 
Regulation, i.e. on the basis of the export price actually paid or payable.  

Comparison 

(14)  The  comparison  between  normal  value  and  export  price  was  made  on  an  ex-works 

basis.  

(15)  For the purpose of ensuring a fair comparison between the normal value and the export 
price,  due  allowance  in  the  form  of  adjustments  was  made  for  differences  affecting 
prices  and  price  comparability  in  accordance  with  Article  2(10)  of  the  basic 
Regulation. Allowances for differences in transport costs, freight and insurance costs, 
bank charges, packing costs and credit costs were granted where they were found to be 
reasonable, accurate and supported by verified evidence.  

Dumping margin 

(16)  Pursuant to Articles 2(11) and (12) of the basic Regulation, the dumping margin was 
established  on  the  basis  of  a  comparison  of  the  weighted  average  normal  value  with 
the weighted average export price as established above.  

(17)  The dumping margin thus calculated is less than 2%, expressed as a percentage of the 
net,  free-at-Union-frontier  price,  duty  unpaid,  and  shall  therefore  be  considered  de 
minimis in accordance with Article 9(3) of the basic Regulation.  

C. LASTING NATURE OF CIRCUMSTANCES  

(18)  Like  the  previous  interim  review  which  resulted  in  Council  Regulation  (EC)  No 
192/2007, the present interim review showed a dumping margin at a de minimis level 
for the KP Chemical Group.  

(19)  No  indications  were  found  that  this  de  minimis  margin  would  not  be  of  a  lasting 
nature, as the KP Chemical Group has been found to operate at a very high capacity 
utilisation  rate  (almost  100%).  In  addition,  the  KP  Chemical  Group  has  no  plans  to 
increase their production capacity in the Republic of Korea. Indeed, the KP Chemical 
Group has acquired a production plant within the Union and is more likely to decrease 
its exports from the Republic of Korea.  

(20)  Therefore the circumstances under which the dumping margin has been calculated in 

this investigation can be considered to be of a lasting nature.  

D. TERMINATION OF THE REVIEW 

(21) 

In  light  of  the  above  findings,  the  present  review  should  be  terminated  without 
amending  the  level  of  the  duty  applicable  to  KP  Chemical  Group.  In  these 
circumstances, the injury aspects do not need to be addressed.  

E. DISCLOSURE 

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(22) 

Interested parties were informed of the essential facts and considerations on the basis 
of  which  it  was  intended  to  terminate  the  present  partial  interim  review.  All  parties 
were  given  the  opportunity  to  comment.  Comments  were  received  from  the  Union 
industry, which however, were not of a nature to change the above conclusions.  

(23)  This  review  should  therefore  be  terminated  without  any  amendment  to  Regulation 

F. FINAL PROVISION 

(EC) No 192/2007. 

HAS ADOPTED THIS REGULATION: 

The  partial  interim  review  of  the  anti-dumping  measures  applicable  to  imports  of  certain 
polyethylene  terephthalate  originating,  inter  alia,  in  the  Republic  of  Korea,  is  hereby 
terminated without amending the measures in force.  

Article 1 

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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