Proposal for a COUNCIL REGULATION amending Regulation (EU) No 1105/2010 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of high tenacity yarn of polyesters originating in the People’s Republic of China and terminating the proceeding concerning imports of high tenacity yarn of polyesters originating in the Republic of Korea and Taiwan
Date: 2011-08-11
Institutions: European Commission
Subjects: China, South Korea, Taiwan, anti-dumping measure, import (EU), originating product, plastics

EUROPEAN COMMISSION 

Brussels, 11.8.2011 
COM(2011) 488 final 

2011/0215 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 1105/2010 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of high tenacity yarn of 
polyesters originating in the People’s Republic of China and terminating the proceeding 
concerning imports of high tenacity yarn of polyesters originating in the Republic of 
Korea and Taiwan 

 
 
  
 
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 high tenacity yarn of polyester originating in the People’s Republic of China 
and terminating the proceeding concerning imports of high tenacity yarn of polyesters 
originating in the Republic of Korea and Taiwan. 

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. 

139 

•  Existing provisions in the area of the proposal 

Council  Regulation  (EU)  No  1105/2010  imposing  a  definitive  anti-dumping  duty  on 
imports  of  high  tenacity  yarn  of  polyesters  originating  in  the  People’s  Republic  of 
China. 

Proposal for granting new exporting producer treatment to new exporter of the product 
concerned to the European Union. 

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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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229 

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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  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 

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 
producer  status  and  therefore  be  subject  to  the  weighted  average  duty  anti-dumping 
duty of 5,3 %. 

310 

•  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"). 

329 

•  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 reason(s). 

Council  Regulation  (EU)  No  1105/2010  imposing  a  definitive  anti-dumping  duty  on 
imports  of  high  tenacity  yarn  of  polyesters  originating  in  the  People’s  Republic  of 
China 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: 

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

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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4) 

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2011/0215 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) No 1105/2010 imposing a definitive anti-dumping duty and 
collecting definitively the provisional duty imposed on imports of high tenacity yarn of 
polyesters originating in the People’s Republic of China and terminating the proceeding 
concerning imports of high tenacity yarn of polyesters originating in the Republic of 
Korea and Taiwan 

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 Community ('the basic 
Regulation')1, and in particular Article 9 thereof,  

Having regard to Article 4 of Council Regulation (EU) No 1105/20102 , 

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

Whereas: 

A.  MEASURES IN FORCE 

(1) 

(2) 

By  Regulation  (EU)  No  1105/2010,  the  Council  imposed  a  definitive  anti-dumping 
duty on imports of high tenacity yarn of polyesters (other than sewing thread), not put 
up  for  retail  sale,  including  monofilament  of  less  than  67  decitex,  originating  in  the 
People's Republic of China ('PRC'), currently falling within CN code 5402 20 00 ('the 
product concerned').  

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  0  %  to  5,5  %  were  imposed  on  the  companies  included  in  the  sample, 
while other cooperating companies not included in the sample were attributed a duty 
rate  of  5,3  %.  Two  cooperating  non-sampled  companies  were  granted  individual 
examination within the meaning of Article 17(3) of the basic Regulation, they received 
duties of 0 % and 9,8 %. A duty rate of 9,8 % for the PRC was imposed on all other 
companies. 

1 
2 

OJ L 343, 22.12.2009, p. 51. 
OJ L 315, 1.12.2010, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

Article  4  of  Regulation  (EU)  No  1105/2010  gives  the  possibility  to  new  Chinese 
exporting  producers  which  meet  the  criteria  set  out  in  that  Article  to  be  granted  the 
duty  rate  applicable  to  the  cooperating  companies  not  included  in  the  sample,  i.e. 
5,3 %. 

B. 

NEW EXPORTING PRODUCERS’ REQUESTS 

Two  companies  (the  applicants)  have  requested  to  be  granted  'New  Exporting 
Producer Treatment' (NEPT). 

An  examination  has  been  carried  out  to  determine  whether  each  of  the  applicants 
fulfils the criteria for being granted NEPT as set out in Article 4 of Council Regulation 
(EU) No 1105/2010, by verifying that the applicant: 

– 

– 

– 

– 

is a producer of the product concerned in the People's Republic of China, 

did  not  export  the  product  concerned  to  the  Union  during  the  investigation 
period on which the measures are based (1 July 2008 to 30 June 2009), 

is not related to any of the exporters or producers in the People’s Republic of 
China which are subject to the measures imposed by that Regulation, 

has actually exported to the 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 to the Union. 

Questionnaires  were  sent  to  the  applicants  who  were  asked  to  supply  evidence  to 
demonstrate that they met the criteria mentioned above.  

The  Commission  sought  and  verified  all  information  it  deemed  necessary  for  the 
purpose of determining whether the criteria set out in Article 4 of Regulation (EU) No 
1105/2010 had been fulfilled. Verification visits were carried out at the premises of the 
two applicants: 

– 

– 

Jiangsu Hengli Chemical Fibre Co. Ltd, 

Amann Twisting Yancheng Co. Ltd. 

C. 

FINDINGS 

Concerning one applicant, Jiangsu Hengli Chemical Fibre Co. Ltd, the examination of 
the  information  submitted  showed  that  it  had  provided  sufficient  evidence  to  prove 
that it meets the criteria set out in Article 4 of Council Regulation (EU) No 1105/2010. 
Therefore,  this  applicant  could  be  granted  the  weighted  average  duty  rate  for  the 
cooperating  companies  not  included  in  the  sample  (i.e.  5,3  %)  in  accordance  with 
Article 4 of Council Regulation (EU) No 1105/2010, and should be added to the list of 
exporting producers of Article 1(2) of that Regulation. 

(9) 

Concerning the other applicant, Amann Twisting Yancheng Co. Ltd, the examination 
of  the  information  submitted  showed  that  it  had  not  provided  sufficient  evidence  to 
prove  that  it  meets  the  criteria  set  out  in  Article  4  of  Council  Regulation  (EU)  No 

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1105/2010. In particular, the investigation revealed that the main raw material used in 
the  manufacturing  process,  high  tenacity  yarn  of  polyesters,  is  not  produced  by  the 
applicant  but  purchased  from  unrelated  suppliers.  The  filament  is  processed  by  the 
applicant  through  different  production  steps,  including  twisting,  and  finally  exported 
under  the  definition  of  the  product  concerned.  As  the  applicant  did  not  produce  the 
product  concerned  but  actually  merely  processed  it,  it  was  concluded  that  Amann 
Twisting  Yancheng  Co.  Ltd  can  not  be  considered  to  be  a  producer  of  the  product 
concerned.  It  therefore  does  not  fulfil  the  requirement  for  NEPT  that  the  company 
requesting it must be a "producer" of the product concerned. 

(10) 

Its request for NEPT was therefore rejected. 

D.  MODIFICATION OF THE LIST OF COMPANIES BENEFITING FROM 
INDIVIDUAL DUTY RATES 

(11) 

In consideration of the findings of the investigation as indicated in recital (8) above, it 
is  concluded  that  the  company  Jiangsu  Hengli  Chemical  Fibre  Co.  Ltd  should  be 
added to the list of individual companies mentioned under Article 1(2) of Regulation 
(EU) No 1105/2010 with a duty rate of 5,3 %. 

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

investigation and were given the opportunity to submit their comments. 

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

taken into account where warranted, 

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HAS ADOPTED THIS REGULATION: 

Article 1 

The  Annex  mentioned  in  Article  1(2)  of  Council  Regulation  (EU)  No  1105/2010  shall  be 
replaced by the following: 

ANNEX 

CHINESE COOPERATING EXPORTING PRODUCERS NOT SAMPLED 

TARIC Additional Code A977 

Company name 

Heilongjiang Longdi Co. Ltd  

City 

Harbin 

Jiangsu Hengli Chemical Fibre Co. Ltd 

Wujiang 

Hyosung Chemical Fiber (Jiaxing) Co. Ltd  

Jiaxing 

Shanghai Wenlong Chemical Fiber Co. Ltd  

Shanghai 

Shaoxing Haifu Chemistry Fibre Co. Ltd  

Shaoxing 

Sinopec Shanghai Petrochemical Company  

Shanghai 

Wuxi Taiji Industry Co. Ltd  

Wuxi 

Article 2 

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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