Proposal for a COUNCIL REGULATION terminating the partial interim review concerning the anti-dumping measures on imports of certain polyethylene terephthalate (PET) originating in India
Date: 2012-06-04
Institutions: European Commission
Subjects: India, anti-dumping duty, countervailing charge, import (EU), originating product, plastics

EUROPEAN COMMISSION 

Brussels, 4.6.2012  
COM(2012) 269 final 

2012/0142 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review concerning the anti-dumping measures on 
imports of certain polyethylene terephthalate (PET) originating in India 

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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  Community  ('the  basic  Regulation')  in  the  proceeding 
concerning imports of certain polyethylene terephthalate (PET) originating, inter alia, 
in India. 

•  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 

Definitive measures are in force and were imposed by Council Regulation (EC) No 
1646/2005 of 6 October 2005 amending Regulation (EC) No 2604/2000 imposing a 
definitive anti-dumping duty on imports of certain polyethylene terephthalate (PET) 
originating, inter alia, in India. 

•  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. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  2  April  2011  the  Commission  initiated  a  partial  interim  review  concerning 
imports of certain polyethylene terephthalate (PET) originating, inter alia, in India. 

The  attached  proposal  for  a  Council  Regulation  is  based  on  the  findings  of  the 
investigation  limited  in  scope  to  the  examination  of  dumping  and  as  far  as  the 
applicant is concerned.  

The applicant withdrew its interim review request, and it was found that an ex officio 
continuation of the investigation is not in the Union interest. 

It is therefore proposed that the Council adopt the attached proposal for a termination 
Regulation which should be published no later than 1 July 2012. 

•  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  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 instrument: regulation. 

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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2012/0142 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review concerning the anti-dumping measures on 
imports of certain polyethylene terephthalate (PET) originating in India 

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') and in particular Articles 11(3) thereof, 

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

Whereas: 

1. 

PROCEDURE 

1.1. 

Measures in force 

(1) 

By  Regulation  (EC)  No  2604/20002,  the  Council  imposed  a  definitive  anti-dumping 
duty  on  imports  of  polyethylene  terephthalate  ('PET')  originating, inter  alia,  in  India 
(‘the  original  investigation’).  A  review  pursuant  to  Article  11(4)  of  the  basic 
Regulation  (‘the  new  exporter  review‘)  concerning  South  Asian  Petrochem  Ltd  was 
subsequently  conducted  and  its  definitive  findings  and  conclusions  are  set  out  in 
Council Regulation (EC) No 1646/20053. Following an expiry review, the Council, by 
Regulation  (EC)  No  192/20074  imposed  a  definitive  anti-dumping  duty  for  a  further 
period of five years. The anti-dumping measures were amended by Council Regulation 
(EC)  No  1286/20085  following  a  partial 
last  review 
investigation’). The measures consist of specific anti-dumping duties. The rate of the 
duty  ranges  between  EUR  87,5  and  EUR  200,9  per  tonne  for  individually  named 
Indian producers with a residual duty rate of EUR 153,6 per tonne imposed on imports 
from other producers (‘the current duties’). 

interim  review  (‘the 

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OJ L 343, 22.12.2009, p. 51. 
OJ L 301, 30.11.2000, p. 21. 
OJ L 266, 11.10.2005, p. 10. 
OJ L 59, 27.2.2007, p. 1. 
OJ L 340, 19.12.2008, p. 1. 

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(2) 

(3) 

(4) 

(5) 

Following  a  name  change  of  one  Indian  company,  South  Asian  Petrochem  Ltd,  by 
Notice  (EC)  No  2010/C  335/066  the  Commission  concluded  that  the  anti-dumping 
findings in respect of South Asian Petrochem Ltd should apply to Dhunseri Petrochem 
& Tea Limited. 

By Regulation (EC) No 2603/20007, the Council imposed a definitive countervailing 
duty  on  imports  of  PET  originating,  inter  alia,  in  India.  Following  an  accelerated 
review  pursuant  to  Article  20  of  Council  Regulation  (EC)  No  597/20098  of  11  June 
2009  on  protection  against  subsidised  imports  from  countries  not  members  of  the 
European  Community  ('the  basic  AS  Regulation'),  the  definitive  measures  were 
amended as set out in Council Regulation (EC) No 1645/20059. Following an expiry 
review,  the  Council,  by  Regulation  (EC)  No  193/200710  imposed  a  definitive 
countervailing  duty  for  a  further  period  of  five  years.  The  countervailing  measures 
were  amended  by  Regulation  (EC)  No  1286/2008  following  the  last  review 
investigation. The countervailing measures consist of a specific duty. The rate of the 
duty ranges between EUR 0 and EUR 106,5 per tonne for individually named Indian 
producers with a residual duty rate of EUR 69,4 per tonne imposed on imports from 
other producers (‘the current countervailing measures’). 

Following  a  name  change  of  one  Indian  company,  South  Asian  Petrochem  Ltd,  by 
Notice  (EC)  No  2010/C  335/0711  the  Commission  concluded  that  the  anti-subsidy 
findings in respect of South Asian Petrochem Ltd should apply to Dhunseri Petrochem 
& Tea Limited. 

By Decision 2005/697/EC12 the Commission accepted undertakings offered by South 
Asian  Petrochem  Ltd  setting  a  minimum  import  price  ('MIP')  (‘the  undertaking’). 
Following  a  name  change,  the  Commission  concluded  by  Notice  (EC)  No  2010/C 
335/0513 that the undertaking offered by South Asian Petrochem Ltd should apply to 
Dhunseri Petrochem & Tea Limited. 

1.2. 

Request for a review 

(6) 

A request for a partial interim review pursuant to Article 11(3) of the basic Regulation 
was lodged by Dhunseri Petrochem & Tea Ltd, an Indian exporting producer of PET 
(‘the  applicant’).  The  request  was  limited  in  scope  to  dumping  and  to  the  applicant. 
The applicant at the same time also requested the review of the current countervailing 
measures.  The  anti-dumping  and  countervailing  duties  are  applicable  to  imports  of 
products produced by the applicant and sales of the applicant to the Union are covered 
by the undertaking. 

(7) 

The  applicant  provided  prima  facie  evidence  that  the  continued  application  of  the 
current  duty  at  its  current  level  was  no  longer  necessary  to  offset  dumping.  In 
particular,  the  applicant  claimed  that  there  had  been  significant  changes  in  the 

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OJ C 335, 11.12.2010, p. 6. 
OJ L 301, 30.11.2000, p. 1. 
OJ L 188, 18.7.2009, p. 93. 
OJ L 266, 11.10.2005, p. 1. 
OJ L 59, 27.2.2007, p. 34. 
OJ C 335, 11.12.2010, p. 7. 
OJ L 226, 11.10.2005, p. 62. 
OJ C 335, 11.12.2010, p. 5. 

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production  costs  of  the  company  and  that  these  changes  have  led  to  a  substantially 
lower dumping margin since the imposition of the current duties. A comparison made 
by the applicant of its domestic prices and its export prices to the Union suggested that 
the dumping margin was substantially lower than the level of current duties. 

1.3. 

Initiation of a partial interim review 

(8) 

Having  determined,  after  consulting  the  Advisory  Committee,  that  the  request 
contained sufficient prima facie evidence to justify the initiation of the partial interim 
review (‘the current review’), the Commission announced, by a Notice of initiation14 
published in the Official Journal of the European Union on 2 April 2011, the initiation 
of a partial interim review pursuant to Article 11(3) of the basic Regulation limited to 
the  examination  of  dumping  as  far  as  the  applicant  is  concerned  ('the  Notice  of 
initiation'). 

1.4. 

Parallel partial interim review of the countervailing measures  

(9) 

(10) 

On 2 April 201115 the Commission announced the initiation of a partial interim review 
pursuant  to  Article  19  of  the  basic  AS  Regulation,  limited  in  scope  to  subsidization 
and to the applicant. 

In  the  partial  interim  review  of  the  countervailing  measures  it  was  found  that  the 
changes  are  not  of  a  lasting  nature.  As  a  consequence,  the  review  investigation  was 
terminated without amending the measures in force. 

1.5. 

Parties concerned 

(11)  The Commission officially informed the applicant, the representatives of the exporting 
country  and  the  association  of  Union  producers  about  the  initiation  of  the  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. 

(12)  All  interested  parties  were  informed  of  the  possibility  to  request  a  hearing.  One 

hearing was requested and granted. 

(13) 

In  order  to  obtain  the  information  deemed  necessary  for  its  investigation,  the 
Commission  sent  a  questionnaire  to  the  applicant  and  received  a  reply  within  the 
deadline set for that purpose. 

(14)  The  Commission  sought  and  verified  all  information  deemed  necessary  for  the 
determination  of  dumping.  The  Commission  carried  out  verification  visit  at  the 
premises of the applicant in Kolkata, India and Haldia, India. 

2. 

WITHDRAWAL  OF  THE  REQUEST  AND  TERMINATION  OF  THE 
PROCEEDING 

(15)  By letter to the Commission dated 18 April 2012 the applicant formally withdrew its 
request  for  the  partial  interim  review  of  the  anti-dumping  measures  applicable  to 
imports  of  PET  originating  in  India.  The  withdrawal  is  supported  mainly  with  the 

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OJ C 102, 02.04.2011, p. 18. 
OJ C 102, 2.4.2011, p.15. 

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further  expansion  of  the  applicant's  production  capacity  which  demonstrates  that  the 
changes in respect of dumping are not of a lasting nature due to an imminent further 
decrease in production costs. The applicant claimed that it is the continuous process of 
change which calls into question the lasting nature of changes established during the 
investigation. It was established that although some of the changes established during 
the  investigation  were  of  a  lasting  nature  the  company  is  indeed  in  a  continuous 
process of change. 

(16) 

(17) 

(18) 

In  view  of  the  withdrawal,  it  was  considered  whether  it  would  be  warranted  to 
continue  the  review  investigation  ex  officio.  The  Commission  services  found  no 
compelling reasons that termination would not be in the Union interest. On this basis, 
the review investigation should be terminated. 

Interested parties were informed of the intention to terminate the review investigation 
and were given the opportunity to comment. 

It  is  therefore  concluded  that  the  review  concerning  imports  of  PET  originating  in 
India should be terminated without amending the anti-dumping measures in force, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  partial  interim  review  of  the  anti-dumping  measures  applicable  to  imports  of  certain 
polyethylene  terephthalate  originating  in  India  initiated  pursuant  to  Article  11(3)  of 
Regulation  (EC)  No  1225/2009  is  hereby  terminated  without  amending  the  anti-dumping 
measures in force. 

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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