Proposal for a COUNCIL REGULATION terminating the partial interim review and the expiry review concerning the anti-dumping measures applicable on imports of certain plastic sacks and bags originating in the People's Republic of China and Thailand imposed by Regulation (EC) No 1425/2006
Date: 2012-06-15
Institutions: European Commission
Subjects: China, Thailand, anti-dumping duty, import (EU), originating product, plastics

EUROPEAN COMMISSION 

Brussels, 15.6.2012  
COM(2012) 294 final 

2012/0155 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review and the expiry review concerning the anti-
dumping measures applicable on imports of certain plastic sacks and bags originating in 
the People's Republic of China and Thailand imposed by Regulation (EC) No 1425/2006

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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 
plastic sacks and bags originating in the People's Republic of China and Thailand. 

• 

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 

By  Regulation  (EC)  No  1425/20061,  the  Council  imposed  a  definitive  anti-dumping  duty 
ranging from 4.3% to 28.8% on imports of plastic sacks and bags originating in the People’s 
Republic  of  China  (‘PRC’)  and  from  5.1%  to  14.2%  for  Thailand.  This  Regulation  was 
subsequently amended by Council Regulations (EC) No 1356/20072, (EC) No 249/20083 and 
(EC) No 189/20094 and by Council Implementing Regulations (EU) No 474/20115 and (EU) 
No 475/20116. 

• 

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  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 

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OJ L 270, 29.09.2006. p. 4. 
OJ L 304, 22.11.2007. p. 5 
OJ L 76, 19.03.2008. p. 8 
OJ L 67, 12.3.2009, p. 5. 
OJ L 131, 18.05.2011, p. 2. 
OJ L 131, 18.05.2011, p. 10. 

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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 

Upon  the  request  of  Greenwood  Houseware  (Zhuhai)  Ltd,  an  exporter  established  in  the 
People's Republic of China an interim review limited in scope to the examination of dumping 
was initiated on 21 September 2010. 
On 27 September 2011, the Commission announced the initiation of an expiry review of the 
anti-dumping measures applicable to imports of of certain plastic sacks and bags originating 
in the People's Republic of China and Thailand. 

The  expiry  review  was  initiated  following  a  substantiated  request  lodged  by  44  Union 
producers  together,  representing  around  30%  of  the  total  estimated  Union  production  of 
certain plastic sacks and bags. The purpose of this investigation was to examine whether the 
expiry  of  measures  would  be  likely  to  result  in  a  continuation  of  dumping  and  injury  if 
measures were allowed to lapse. 

In  the  expiry  review,  the  low  level  of  cooperation  of  the  Union  producers  prevented  the 
Commission  from  constituting  a  representative  sample  in  order  to  assess  whether  the 
conditions specified in Article 3(2) and Article 11(2) of the basic Regulation are met. 

Following the above, the Commission was not in a position to conclude on the effect of the 
alleged  dumped  imports  on  the  Union  industry  and  therefore  proposes  to  terminate  the 
investigation.  Since  the  above  mentioned  interim  review  is  therefore  without  purpose,  it 
should be terminated as well.  

It is therefore proposed that the Council adopts the attached proposal for a Regulation which 
should be published in the Official Journal of the European Union at the earliest opportunity. 

• 

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. 

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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 basic Regulation does not provide for alternative options. 

4. 

BUDGETARY IMPLICATION  

The proposal has no implication for the Union budget. 

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2012/0155 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review and the expiry review concerning the anti-
dumping measures applicable on imports of certain plastic sacks and bags originating in 
the People's Republic of China and Thailand imposed by Regulation (EC) No 1425/2006 

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') and in particular Article 11(2), (3), (5) and (6) and Article 9 thereof, 

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

Whereas:  

A. 

PROCEDURE 

1.  Measures in force 

(1) 

(2) 

(3) 

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By  Regulation  (EC)  No  1425/20067,  the  Council  imposed  a  definitive  anti-dumping 
duty on imports of certain plastic sacks and bags, originating in the People’s Republic 
of China (‘PRC’) and Thailand.  

This  Regulation  was  subsequently  amended  by  Council  Regulations  (EC)  No 
1356/20078,  (EC)  No  249/20089  and  (EC)  No  189/200910  and  by  Council 
Implementing Regulations (EU) No 474/201111 and (EU) No 475/201112 . 

2.  Requests for reviews and initiation  

On  18  May  2010,  the  Commission  received  a  request  for  a  partial  interim  review  of 
Regulation  (EC)  No  1425/2006  from  Greenwood  Houseware  (Zhuhai)  Ltd,  an 
exporting producer of certain plastic sacks and bags in the PRC ('the applicant').  

OJ L 270, 29.09.2006. p. 4. 
OJ L 304, 22.11.2007. p. 5 
OJ L 76, 19.03.2008. p. 8 
OJ L 67, 12.3.2009, p. 5. 
OJ L 131, 18.05.2011, p. 2. 
OJ L 131, 18.05.2011, p. 10. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Subsequently,  following  the  publication  of  a  Notice  of  impending  expiry  of  the 
definitive  anti-dumping  measures  in  force,  the  Commission  received,  pursuant  to 
Article  11(2)  of  the  basic  Regulation,  a  request  for  an  expiry  review,  lodged  on  30 
June 2011. 

The request was lodged by 44 Union producers together, representing around 30% of 
the total estimated Union production of certain plastic sacks and bags. 

The request was based on the grounds that the expiry of the measures would be likely 
to result in a continuation of dumping and injury if measures were allowed to lapse. 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  the  partial  interim  review  and  an  expiry  review,  the 
Commission announced the initiation of the partial interim review pursuant to Article 
11(3)  of  the  basic  Regulation  and  an  expiry  review  pursuant  to  Article  11(2)  of  the 
basic Regulation by a notice published on 21 September 2010 and 27 September 2011 
respectively in the Official Journal of the European Union. 

3. 

Investigations 

3.1. Investigation periods 

The expiry review investigation of continuation or recurrence of dumping and injury 
covered the period from 1 July 2010 to 30 June 2011 (‘the review investigation period’ 
or ‘RIP’). The examination of the trends relevant for the assessment of a likelihood of 
a continuation or recurrence of injury covered the period from 1 January 2008 up to 
the end of the RIP (‘period considered’). 

The review investigation period for the partial interim review limited in scope to the 
examination of dumping with regard to Greenwood Houseware (Zhuhai) Ltd. covered 
the period from 1 April 2009 to 30 June 2010.  

3.2. Product concerned and like product  

(10)  The product concerned in both investigations is plastic sacks and bags, containing at 
least 20 % by weight of polyethylene and of sheeting of a thickness not exceeding 100 
micrometres  (μm),  originating  in  the  PRC  and  Thailand  ('the  product  concerned'), 
currently falling within CN codes ex 3923 21 00, ex 3923 29 10 and ex 3923 29 90 . 

(11)  As  far  as  the  product  produced  and  sold  in  the  Union  market  is  concerned,  no 
conclusive findings could be made with regard to Article 1(4) of the basic Regulation, 
due  to  the  insufficient  cooperation  of  the  Union  industry  in  the  expiry  review  (see 
below section B).  

(12)  As far as the product produced and sold on the domestic market by the applicant of the 
interim  review  is  concerned,  as  well  as  the  product  produced  and  sold  in  a  potential 
analogue  country  in  the  framework  of  the  interim  review,  it  is  noted  that  the 
investigation  did  not  reach  any  conclusions  given  the  termination  of  both  current 
investigations and the repeal of the existing measures (see below section B).  

3.3. Parties concerned by the investigation 

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(13)  The  Commission  officially  advised  Greenwood  Houseware  (Zhuhai)  Ltd  and  the 
representatives  of  the  PRC  of  the  initiation  of  the  partial  interim  review  limited  in 
scope to the examination of dumping. Both parties were given the opportunity to make 
their views known in writing and to request a hearing within the time limit set out in 
the Notice of initiation.  

(14)  The  Commission  officially  advised  the  Union  producers  who  lodged  the  request  for 
the expiry review, other known Union producers and associations of Union producers, 
exporting  producers,  importers  and  users  known  to  be  concerned  as  well  as  their 
associations.  Producers  in  the  possible  analogue  countries,  i.e.  India,  Indonesia, 
Malaysia, Turkey and USA and the representatives of the PRC and Thailand were also 
informed  of  the  initiation  of  the  expiry  review.  Interested  parties  were  given  the 
opportunity to make their views known in writing and to request a hearing within the 
time limit set out in the Notice of initiation.  

(15)  All interested parties who so requested and showed that there were particular reasons 

why they should be heard were granted a hearing. 

3.4 Sampling of Union producers  

(16) 

In view of the large number of Union producers involved in the expiry investigation, 
the  application  of  sampling  was  envisaged  in  the  relevant  Notice  of  initiation  in 
accordance with Article 17 of the basic Regulation. 

3.4.1 Description of the Union industry 

(17)  The sector of plastic sacks and bags production in the Union is highly fragmented with 
a very large number of producers of different size, including a large sector of small-
sized producers spread over several Member States. 

(18)  The  information  provided  at  the  initiation  stage  in  the  request  indicated  that  large-
medium-sized  companies  represented  around  25%  of  the  cooperating  producers  and 
around  70%  of 
the  cooperating  Union  production.  Accordingly,  small-sized 
companies, represented around 75% of the cooperating producers and around 30% of 
their production. 

(19) 

In addition, the information showed that the Union production is spread among several 
Members States, but largely concentrated in Germany, France, Spain and Italy. 

3.4.2 Sampling methodology 

(20)  Article  3(2)  of  the  basic  Regulation  requires  that  a  determination  of  injury  shall  be 
based on positive evidence and shall involve an objective determination of, inter alia, 
the impact of dumped imports on the Union industry. Any findings of injury and the 
information  collected  for  that  purpose  would  thus  have  to  be  representative  as  to 
reflect the situation of the entire Union industry.  

(21) 

It follows that the high level of fragmentation of the plastic sack and bags sector had to 
be  taken  into  consideration  in  the  sampling  exercise.  In  order  to  be  able  to  draw 
conclusions  that  would  be  representative  for  the  entire  Union  industry  it  was 
considered necessary to ensure that also the situation of the small-sized companies was 
properly reflected. 

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(22)  Consequently, for the purpose of selecting a representative sample of Union producers 
the cooperating Union producers were divided into two segments based on the volume 
of  their  yearly  production:  large-medium-sized  companies  with  production  above 
15.000 tonnes on one hand and small-sized companies with production below 15.000 
tonnes  on  the  other  hand.  It  was  envisaged  to  sample  the  largest  companies  within 
each segment.  

(23)  Furthermore, the producers' geographical spread amongst Member States as described 

in recital (19) was also taken into consideration. 

3.4.3 Procedure for selecting the provisional sample  

(24)  The procedure to obtain the information necessary for the selection of the sample of 
Union  producers  emanated  from  the  information  obtained  at  initiation  stage.  In 
addition,  the  relevant  Notice  of  initiation  invited  all  other  producers  to  make 
themselves  known  should  they  wish  to  be  included  in  the  sample.  Following  the 
publication  of  the  Notice  of  initiation,  no  company  contacted  the  Commission 
requesting to be included in the sample. 

(25)  As  a  result  of  the  criteria  explained  in  recitals  (20)  to  (23)  five  Union  producers 
operating  in  four  Member  States  were  selected  to  be  in  the  sample.  They  were  the 
largest  producers  of  each  of  the  two  segments,  taking  into  account  size  and 
geographical  location.  Three  sampled  companies  belong  to  the  segment  of  large-
medium-sized companies, two to the segment of small-sized companies. 

(26)  The  selected  companies  also  reflected  the  geographical  spread  amongst  Members 
States  in  terms  of  production,  with  Germany  and  France  representing  the  companies 
operating  in  the  large-medium-sized  segment  and  Spain  and  Italy  those  operating  in 
the small-sized segment. 

(27)  The sample thus selected represented 22.5 % of total production of plastic sacks and 
bags by the cooperating producers and 12.3% of the total estimated Union production, 
based on the total Union production figures reported in the request. 

(28)  At  the  initiation  stage,  all  known  Union  producers  were  informed  about  the 
composition of the provisional sample and were given the possibility to comment. No 
comments were received.  

B. 

SITUATION OF THE UNION INDUSTRY 

(29) 

It is recalled that the determination of injury must be evidence-based assessment of the 
effect of the dumped imports on the Union industry.  

(30)  The fragmentation of the industry therefore had to be taken into account in the sample 
and  questionnaires  requesting  general  data  mainly  regarding  macroeconomic 
indicators per Member State were in addition sent to all known Union Associations of 
producers in order to obtain the necessary information needed.  

(31) 

In terms of the sample of Union producers, the level of representativity was seriously 
affected  by  the  fact  that  the  largest  sampled  producer  operating  in  segment  of  large-
medium-sized  companies  and  one  producer  operating  in  segment  of  small-sized 
companies  informed  the  Commission  that  they  did  not  wish  to  respond  to  the 

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questionnaire. This meant that only three out of the five sampled companies continued 
to  cooperate  and  that  no  or  only  partial  information  would  be  provided  for  the 
identified segments and producing Member States. 

(32)  Numerous  attempts  where  therefore  made  to  select  a  new  representative  sample  that 

would respect the selection methodology outlined in recitals (17) to (28). 

(33) 

In  this  respect  a  total  of  six  additional  Union  producers,  that  had  expressed  their 
willingness  to  be  sampled,  were  identified  as  possible  replacements  for  the  two 
companies that had withdrawn the cooperation from the sample. These six additional 
companies  were  approached  and  requested  to  cooperate  by  filling  out  the  Union 
producer's questionnaire. 

(34)  Out  of  these  six  additional  Union  producers  approached,  only  one  producer, 
representing  the  segment  of  large-medium-sized  companies,  eventually  agreed  to 
cooperate. No replacement was found to represent the production in Germany, one of 
the largest Member States in terms of production of plastic sacks and bags.  

(35)  Therefore, it was not possible to select a new sample in accordance with Article 17(4) 
of  the  basic  Regulation  as  the  requisite  representativity  in  terms  of  the  identified 
segments and producing Member States could not be reached. 

(36)  Due to the low cooperation on the part of the sampled Union producers, it could not be 
reasonably concluded that the data compiled from the cooperating companies reflected 
the situation of the entire Union industry and therefore it was not possible to properly 
assess  whether  the  conditions  specified  in  Article  3(2)  of  the  basic  Regulation  were 
met.  

(37)  Following the attempts to select a new sample, one group of producers reiterated their 
commitment to taking an active part in the expiry review, restating the importance of 
maintaining the anti-dumping measures in force for the Union industry. This group of 
producers  expressed  regrets  that  only  one  amongst  them  was  invited  by  the 
Commission to complete the questionnaire. In this context it should be noted that the 
willingness  of  these  companies  to  cooperate  was  fully  considered  and  they  were  all 
included in the group of companies that were taken into account for the selection of 
the  new  sample.  It  is  recalled,  however,  that  in  order  to  ensure  the  required 
representativity,  the  selection  method,  as  described  in  recital  (17)  to  (28)  had  to  be 
respected  also  for  the  new  sample.  Since  only  one  of  the  companies  of  this  group 
fulfilled the criteria mentioned above, only that company could be invited to be part of 
the sample. The other companies were of a size or situated in Member States that were 
already sufficiently represented in the sample. 

(38)  Certain  information  on  country-wide  production,  sales  figures  and  other  key  macro 
indicators were received from the national associations of the Netherlands, Spain, Italy 
and partially France. However, the European Plastics Converters Association (EuPC) 
did  not  provide  the  information  requested  in  the  specific  questionnaire  sent  to  them 
and therefore, no conclusive data could be collected on a macroeconomic level across 
the Union. 

C. TERMINATION OF THE PROCEEDINGS 

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(39) 

In light of the above and in accordance with Article 9 (2) of the basic Regulation, the 
expiry review concerning imports of plastic bags from the PRC and Thailand should 
be terminated.  

(40)  The low level of cooperation of the Union producers and the lack of a representative 
sample  has  prevented  the  Commission  from  being  able  to  assess  whether  the 
conditions specified in Article 3(2) and Article 11(2) of the basic Regulation are met. 
It  can  thus  not  be  concluded  whether  the  expiry  of  the  measures  in  place  would  be 
likely to lead to a continuation or recurrence of injury and the investigation should be 
terminated on these grounds.  

(41) 

It  follows  from  the  above  that  the  interim  review  is  without  purpose  and  should  be 
terminated as well. 

(42)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend the termination of the two investigations. They 
were  also  granted  a  period  to  submit  comments  subsequent  to  that  disclosure.  The 
submissions and comments were duly taken into consideration where warranted. 

(43)  One interested party claimed that since it was proposed to terminate the review due to 
lack  of  cooperation  of  the  Union  producers,  the  anti-dumping  measures  should  be 
repealed  with  retroactive  effect,  i.e.  as  of  30  September  2011,  when  the  measures  in 
force should have initially expired. 

(44) 

In  this  context  it  is  recalled  that  the  request  for  the  review  was  made  by  Union 
producers  representing  more  than  30%  of  the  total  Union  production  in  accordance 
with the basic Regulation. Moreover, Article 11(2) of the basic Regulation explicitly 
stipulates that measures shall remain in force pending the outcome of the review. The 
findings mentioned in recital (40), however, did not have an impact on the legality of 
the  initiation  of  the  review  as  such  which  means  that  the  provisions  in  Article  11(2) 
stipulating  that  measures  shall  remain  in  force  pending  the  outcome  of  the  review 
continue to apply. This argument therefore had to be rejected.  

(45)  A  number  of  Union  producers  also  responded  to  the  disclosure  by  stating  they  were 
withdrawing  as  complaining  producer.  However,  taking  into  account  other  Union 
producers maintained their position and given the fact that the standing requirements 
as  described  in  recital  (5)  were  fulfilled  at the  time  of  the  initiation  of  the  case,  this 
would not have an impact on the procedure. 

(46) 

In  view  of  the  foregoing,  none  of  the  comments  received  were  such  as  to  alter  the 
above  conclusions.  It  is  therefore  concluded  that  the  anti-dumping  proceeding 
concerning imports into the Union of certain plastic sacks and bags originating in the 
PRC and Thailand should be terminated and measures be repealed. It follows that the 
on-going interim review referred to in recital (3), will be terminated at the same time 
as this expiry review.  

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HAS ADOPTED THIS REGULATION: 

Article 1 

The  anti-dumping  measures  concerning  imports  of  certain  plastic  sacks  and  bags,  currently 
falling within CN codes ex 3923 21 00, ex 3923 29 10 and ex 3923 29 90 and originating in 
the  People’s  Republic  of  China  and  Thailand  are  hereby  repealed  and  the  proceeding 
concerning these imports is terminated.  

Article 2 

The  partial  interim  review  of  the  anti-dumping  measures  applicable  to  imports  of  certain 
plastic sacks and bags, currently falling within CN codes ex 3923 21 00, ex 3923 29 10 and ex 
3923  29  90  and  originating  in  the  People’s  Republic  of  China  initiated  pursuant  to  Article 
11(3) of Regulation (EC) No 1225/2009, is hereby terminated. 

This  Regulation  shall  enter  into  force  on  the  day  following  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. 

Done at Brussels,  

For the Council 
The President 

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