Proposal for a COUNCIL REGULATION amending 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 and Thailand, and terminating the proceeding on imports of certain plastic sacks and bags originating in Malaysia
Date: 2011-04-18
Institutions: European Commission
Subjects: China, Malaysia, Thailand, anti-dumping duty, anti-dumping legislation, originating product, packaging product, plastics

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EUROPEAN COMMISSION 

Brussels, 18.4.2011 
COM(2011) 210 final 

2011/0088 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending 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 
and Thailand, and terminating the proceeding on imports of certain plastic sacks and 
bags originating in Malaysia 

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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) n° 1225/2009 of 
30  November  2009  on  protection  against  dumped  imports  from  countries  not 
members of the European Community. 

•  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 

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 and Thailand. 

•  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 contain provisions for 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 

The attached proposal for a Council Regulation is based on the definitive finding that 
one Chinese exporting producer has met all criteria to be granted the new exporting 

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producer status and therefore be subject to the weighted average duty anti-dumping 
duty of 8.4%. 

•  Legal basis 

Council Regulation (EC) n° 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  European  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 instruments: regulation. 

Other means would not be adequate for the following reason: 

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

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2011/0088 (NLE) 

Proposal for a 

COUNCIL REGULATION  

amending 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 
and 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 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 
Regulation), 

Having regard to Council Regulation (EC) No 1425/20062 and in particular Article 2 thereof, 

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 Union of certain plastic sacks and bags originating in, inter 
alia,  the  People's  Republic  of  China  ('PRC').  Given  the large  number  of  cooperating 
exporting producers in the investigation that led to the imposition of the anti-dumping 
duty ('the original investigation') in the PRC, a sample of Chinese exporting producers 
was selected and individual duty rates ranging from 4.8% to 12.8% were imposed on 
the companies included in the sample, while other cooperating companies not included 
in the sample were attributed a duty rate of 8.4%. By Regulation (EC) No 249/2008 a 
duty  rate  of  4.3%  has  been  set  for  a  certain  company.  A  duty  rate  of  28.8%  for  the 
PRC was imposed on companies which either did not make themselves known or did 
not cooperate with the investigation. 

(2) 

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

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OJ L 343, 22.12.2009, p. 51. 
OJ L 270, 29.9.2006, p. 4. 

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•  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 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 cooperating companies not included in the sample, i.e. 8.4%. 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The list of companies granted the weighted average duty rate of 8.4% for cooperating 
companies  was  amended  by  regulations  (EC)  No  249/20083  and  (EC)  No  189/20094 
and by Council Regulation (EU) No XXX.  

B. NEW EXPORTING PRODUCER REQUESTS 

Six  Chinese  companies  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 six applicants 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 six applicants who were asked to supply evidence 
to demonstrate that they met the three criteria mentioned above. 

One  company  requesting  new  exporting  producer  treatment  did  not  provide  the 
requested  information.  It  was  therefore  not  possible  to  verify  whether  it  fulfilled  the 
criteria set out in Article 2 of Council Regulation (EC) No 1425/2006 and its request 
had to be rejected. 

One company withdrew its application. 

One company did not export the product concerned to the Union neither it entered into 
an irrevocable contractual obligation to export a significant quantity to the Union after 
the  investigation  period.  Thus,  it  did  not  meet  the  third  criterion  and  its  request  was 
therefore rejected.  

(10)  One company was not considered as a new exporting producer since it is related to an 
exporting producer in the PRC which is subject to the anti-dumping measures imposed 
by the Regulation(EC) No 1425/2006. It thus did not meet the second criterion and its 
request was therefore rejected. 

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OJ L 76, 19.3.2008, p. 8. 
OJ L 67, 12.3.2009, p. 5. 

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(11)  One company submitted misleading information concerning its date of establishment. 
This cast doubts on the reliability of the information provided, including the period of 
time  the  product  concerned  could  have  been  exported  to  the  EU.  Its  request  was 
therefore rejected. 

(12)  The evidence provided by the remaining Chinese exporting producer was considered 
sufficient to show that it fulfils the criteria set out in Article 2 of Council Regulation 
(EC)  No  1425/2006.  This  exporting  producer  can  therefore  be  granted  the  duty  rate 
applicable  to  the  cooperating  companies  not  included  in  the  sample  (i.e.  8.4%)  and 
consequently  its  name  can  be  added  to  the  list  of  exporting  producers  in  Annex  I  to 
Council Regulation (EC) No 1425/2006. 

(13)  The  applicants  and  the  Union  industry  have  been  informed  of  the  findings  of  the 

examination and were given the opportunity to submit their comments. 

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

taken into account where warranted, 

HAS ADOPTED THIS REGULATION: 

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

Article 1 

Company 

Xiamen Good Plastic Co., Ltd. 

City 

Xiamen 

Article 2 

TARIC 
additional 
code 

B109 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  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, 

For the Council 
The President 

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