CELEX: 31991R2904
Language: en
Date: 1991-09-27 00:00:00
Title: Commission Regulation (EEC) No 2904/91 of 27 September 1991 imposing a provisional anti­dumping duty on imports of certain polyester yarns (man­made staple fibres) originating in Taiwan, Indonesia, India, the People's Republic of China and Turkey and terminating the anti­dumping proceeding in respect of imports of these yarns originating in the Republic of Korea

3 . 10. 91                            Official Journal of the European Communities                            No L 276/7
                                     COMMISSION REGULATION (EEC) No 2904/91
                                                   of 27 September 1991
                  imposing a provisional anti-dumping duty on imports of certain polyester yarns
                  (man-made staple fibres) originating in Taiwan, Indonesia, India, the People's
                  Republic of China and Turkey and terminating the anti-dumping proceeding in
                      respect of imports of these yarns originating in the Republic of Korea
 THE COMMISSION OF THE EUROPEAN COMMUNITIES,                            production of the polyester yarns concerned. The
                                                                        complaint contained evidence of dumping of this
 Having regard to the Treaty establishing the European                  product originating in the countries indicated in
 Economic Community,                                                    the previous paragraph and of material injury
                                                                        resulting therefrom which was considered sufficient
                                                                        to justify opening a proceeding.
 Having regard to Council Regulation (EEC) No 2423/88
 of 11 July 1988 on protection against dumped or subsi­
 dized imports from countries not members of the Euro­
 pean Economic Community ('), and in particular Article           (2)  The Commission officially advised the exporters
  11 thereof,                                                           and importers known to be concerned, the repre­
                                                                        sentatives of the exporting countries and the
                                                                        complainants and gave the parties directly
 Having informed the EEC-Turkey Association Council                     concerned the opportunity to make their views
 pursuant to Article 47 (2) of the Additional Protocol to               known in writing and to request a hearing.
 the Agreement establishing an association between the
 European Economic Community and Turkey (2), and
 being aware that the measures concerning Turkey
 imposed by this Regulation should be repealed if the                   Representatives of the exporters, some importers, a
 Association Council issues a recommendation within the                 large number of Community producers and the
 time period provided for in this Article,                              complainant made their views known in writing.
                                                                        Representatives of the Turkish, the Indian, the
                                                                        Indonesian and the Korean exporters and one
 After consultations within the Advisory Committee as                   importer requested and were granted a hearing.
 provided for under the above Regulation,
                                                                 (3)   In view of the extremely large number of Commu­
                                                                       nity producers mentioned in the complaint, the
 Whereas :                                                              Commission would have been unable adequately to
                                                                       verify the information received from all of them as
                                                                       this would have resulted in an extremely long delay
                          A. PROCEDURE
                                                                       in completing the investigation which would have
                                                                       been incompatible with the very purpose of anti­
                                                                       dumping proceedings. For this reason the Commis­
(1 )    In March 1990 the Commission announced, by a                   sion decided to make a representative selection of
        notice published in the Official Journal of the                firms on the basis of their size and geographic situ­
        European Communities (3), the initiation of an                 ation. A certain number of firms of large, medium
        anti-dumping proceeding concerning imports into                and small size located in 10 Member States were
        the Community of certain yarns of staple polyester             chosen for questionnaires to be sent. The producers
        fibres (hereafter referred to as 'polyester yarns')            from which acceptable replies were received were
        originating in the Republic of Korea, Taiwan, Indo­            found to be representative of the Community
        nesia, India, the People's Republic of China and               industry within the meaning of Article 4 (5) of
        Turkey and commenced an investigation. The                     Regulation (EEC) No 2423/88 .
        product investigated falls within CN codes
        5508 10 11 , 5509 21 10, 5509 21 90, 5509 2 2 10,
        5509 22 90, 5509 51 00 and 5509 53 00 .                  (4)   This conclusion does not apply to sewing thread
                                                                       yarns described in recital (10) for which the
        The proceeding was initiated as a result of a                  combined production of the Community producers
        complaint lodged by the Committee of the Cotton                which replied to the questionnaire is not consi­
        and Allied Textile Industries of the EEC (Euro­                dered to be representative of the Community
        coton) on behalf of producers whose collective                 industry of this product. Indeed, of all firms
        output constituted substantially all Community                 reported by the complainant to be finishers of
                                                                       sewing thread those supporting the complaint
(') OJ No L 209, 2. 8. 1988 , p. 1 .                                  which supplied the information deemed to be
(2) OJ No L 293, 29. 12. 1972, p. 4.                                   necessary for the investigation only represented a
0 OJ No C 80, 30 . 3. 1990, p. 6.                                      minimal share of the total Community output of
 ---pagebreak--- No L 276/8                           Official Journal of the European Communities                               3 . 10. 91
     sewing thread in 1989 on the basis of the informa­                  — J Espona SA, Barcelona,
     tion submitted by the Federation internationale de                  — Grupo MITASA, Barcelona,
     la filterie.
                                                                         — Manufacturas Antonio Gassol SA, Barcelona ;
     The Commission concludes therefore that, while                      Italy :
     for Community producers of yarns other than                         — Bossi SpA, Cameri,
     sewing thread the provisions of Article 4 (5) of                    — Filatura    Giovanni    Graziani  SRL,    Busto
     Regulation (EEC) No 2423/88 are met, that is not
     the case as far as Community producers of sewing                        Arsizio,
     thread are concerned.                                               — Manifattura del Circeo SpA, Milano,
                                                                         — Manifattura Maffeis, Industria Filati SpA,
                                                                             Gazzaniga,
(5)  In India, the large number of exporters prevented
     the Commission from carrying out verifications at                   — Filatura della Valtrompia SpA, S. Vittore
     the premises of all of them. Because of this the                        Olona,
     Commission, in order to achieve the most equi­                      — Linificio e Canapificio Nazionale SpA, (Divi­
     table method of completing the investigation                            sione Cotonificio di Conegliano), Vimercate ;
     within a reasonable period, proceeded as follows :
                                                                         Portugal :
    The Commission forwarded questionnaires to all                       — Coelima Indústrias Têxteis SA, Pevidem ;
     Indian exporters known (43 firms). Most of these
     exporters replied to the questionnaire and no                       United Kingdom :
     requests for questionnaires were received from                     —- Courtaulds Textiles pic, (Courtaulds Spin­
     other firms. The Commission selected, on the basis                      ning), Oldham,
     of criteria such as their production and sales both                — CV Woven Fabrics Ltd (India Mills),
     in India and in the Community, seven firms of                           Darwen, Lancashire ;
     small, medium and large size. The Commission
     informed the Synthetic and Rayon Textiles Export                    France :
     Promotion Council (SRTEPC) which represents
    virtually all the exporters of the product concerned                — P & J Leurent SA, Tourcoing,
     in India, of the criteria used for choosing the                    — La Cotonnière d'Armentières SA, Armenti­
    selected companies and of its intention to apply                         ères,
    the weighted average findings established for these
    seven companies to the rest of the cooperating                      — La Cotonnière du Touquet SA, Armentières ;
    exporters. No objections were raised by the
    SRTEPC to the proposed methodology.                                  Belgium :
                                                                            — NV Utexbel, Renaix ;
(6) The Commission sought and verified all informa­                  (b) Exporters :
    tion it deemed to be necessary for the purposes of a
    preliminary determination and carried out investi­                   India :
    gations at the premises of the following firms :
                                                                        — Banswara Syntex Ltd, Bombay,
                                                                        — The Coimbatore Pioneer Mills Ltd, Peela­
    (a) Community producers :                                                medu, Coimbatore,
                                                                        — Modern Syntex Ltd, Bombay,
        Germany :
                                                                        — Rajasthan Spinning & Weaving Mills Ltd,
        — Neue Baumwoll-Spinnerei und Weberei Hof                            Gulapura,
             AG, Hof,                                                   — Reliance Chemotex Industries Ltd, Bombay,
        — Vogtländische Baumwoll Spinnerei AG, Hof,                     — The Shree Meenakshi Mills Ltd, Madurai,
        — Schoeller Textil GmbH & Co. Kg, Düren ;                       — Shree Satyam Sp., and Wvg Mills Ltd, Secun­
                                                                             derabad ;
        Spain :                                                         Indonesia :
        — CA Hilaturas de Fabra y Coats, Barcelona,                     — P T Kewalram Indonesia, Bandung ;
        — Estabanell y Pahisa SA, Barcelona,                            Republic of Korea :
        — Hilaturas Gossypium SA, Barcelona,                            — Choongnam Spinning Co. Ltd, Seoul,
        — Hilaturas MAB SA, Barcelona,                                  — Taekwang Industrial Co. Ltd, Seoul ;
 ---pagebreak---  3 . 10. 91                            Official Journal of the European Communities                             No L 276/9
             Taiwan :                                                   B. PRODUCT UNDER CONSIDERATION, LIKE
                                                                                               PRODUCT
             — Chung Shing Textile Company Ltd, Taipei ;
             Turkey :
                                                                       (i) Definition of product
             — Bisas Bursa Iplik Sanayii A§, Bursa,
             — Ceytas Ceyhan Tekstil Sanayii AS,Ceyhan,          (10)  The products covered by the complaint and for
                Adana,                                                  which the proceeding was opened are the fol­
             — Soktas Pamuk ve Tarim Ürünlerini Deger                   lowing :
                Pendirme Ticaret ve Sanayii AS,Söke.                   — sewing thread of polyester staple fibres, not put
                                                                            up for retail sale (CN code 5508 10 11 ),
         (c) Importers in the Community :                              — single and multiple (folded) yarn containing
             France :                                                       85 % or more by weight of polyester staple
             — Sartel Tootal SA, Wattrelos,                                 fibres, not put up for retail sale (CN codes
                                                                            5509 21 10,     5509 21 90,    5509 22 10     and
             — Cousin Frères SA, Wervicq-sud ;                              5509 22 90),
             Belgium :                                                 — other yarn of polyester staple fibres mixed
             — Chemitex SA, Brussels ;                                      mainly or solely either with artificial staple
                                                                            fibres or with cotton (CN codes 5509 51 00 and
             United Kingdom :                                               5509 53 00).
             — Broome and Wellington, Manchester,
             — English Sewing Ltd, Poynton/Cheshire.                   With the exception of sewing thread all other yarns
                                                                       covered by the proceeding can be basically divided
 (7)     The following producers in India responded to the             into three categories : polyester yarns of staple
         questionnaire sent by the Commission and agreed               fibres, polyester yarns of staple fibres mixed with
         to cooperate in the investigation but were not                viscose and polyester yarns of staple fibres mixed
         visited for the reasons outlined in recital (5) :             with cotton. Within each category yarns are divided
                                                                       into different count numbers depending on their
         — Deepak Spinners Ltd, Baddi, Solan,                          thickness and on whether they are single or
         — Gokak Patel Volkart Ltd, Gokak Mills Division,              multiple. For the purpose of this Regulation each
              Bombay,                                                  one of these is called a 'product type'.
         — Himachal Fibres Ltd, New Delhi,
                                                                       These yarns have very similar physical characteris­
         —   Hind Syntex Ltd, Dewas,                                   tics, are manufactured using the same basic techno­
         —   Indo Rama Synthetics (India) Ltd, New Delhi,              logy and on the same type of equipment and are
         —   Loyal Textile Mills Ltd, Kovilpatti,                      marketed under a similar commercial policy. They
         —   Orient Syntex Ltd, Bombay,                                have, for the same product types, similar costs of
                                                                       production and selling prices per unit and a high
        — Precot Mills Ltd, Coimbatore,                                degree of interchangeability in their uses.
        — Rajasthan Textile Mills (prop. Sutlej Cotton
             Mills Ltd), Bhawanimandi,                                 The sewing thread of polyester staple fibres falling
        — Sholingur Textiles Ltd, Dindigul,                            within CN code 5508 10 11 has, however, distinct
                                                                       technical characteristics and end uses. In addition
        — Soundaraja Mills Ltd, Dindigul,
                                                                       to the manufacturing processes common to all
        — The Madhavnagar Cotton Mills Ltd, Madhav­                    yarns, i.e. spinning and in certain cases twisting,
             nagar,                                                    the production of sewing thread requires at least
        — Vardhman Spinning & General Mills Ltd,                       three other manufacturing processes, i.e. dyeing,
             Ludhiana,                                                 lubricating and winding which result in different
        — Yarn Syndicate Ltd, Calcutta.                                physical characteristics of the finished product. The
                                                                       end uses are clearly different ; sewing thread is used
(8)     The investigation of dumping covered the period                for sewing whereas the other yarns are primarily
        from 1 January 1989 to 31 December 1989 (the                   used for weaving or knitting.
        investigation period).
                                                                       For all these reasons, the Commission has come to
(9)     This investigation has exceeded the normal time                the conclusion that, for the purpose of the present
        period of one year because of the volume and                   proceeding, polyester yarns of staple fibres, poly­
        complexity of the data initially gathered and                  ester yarns of staple fibres mixed with viscose and
        examined, and because the investigation has                    polyester yarns of staple fibres mixed with cotton
        required the study of related issues which arose               can be considered as one product, whereas sewing
        during the proceeding and which could not' have                thread falling within CN code 5508 10 11 should
        been foreseen at its outset.                                   be considered as a distinct product.
 ---pagebreak---  No L 276/10                             Official Journal of the European Communities                                3 . 10 . 91
 (11 )  A Community importer and finisher of sewing                      Where a particular product type exported to the
        thread alleged that the so-called unfinished sewing               Community was not sold on the domestic market
        thread or 'grey yarn', which is a 100 % polyester                 or where such sales were made in insufficient
        yarn used to produce finished sewing thread,                      quantities, given the difficulties in making a
        should be considered as a distinct product and                    reasonable estimate of the value of the differences
        should, either be excluded from the scope of the                  between product types, normal value was
        proceeding, or be considered separately for all                   constructed on the basis of the costs of production
        purposes of the proceeding. In support of its argu­               plus a reasonable profit margin. The selling,
        ment this importer argued that these 'grey yarns'                general and administrative expenses included in
        had different technical characteristics, economics of            the cost of production and the profit margins were
        production and end uses.                                          calculated by reference to the expenses incurred
                                                                          and the profits realized by the exporter concerned
        The Commission came to the conclusion that the                    on sales of other types of the like product on the
                                                                          domestic market.
        alleged differences in technical characteristics were
        not exclusive to these 'grey yarns' but were
        common to many other yarns used for weaving and
        knitting purposes and that the arguments put                     (b) Taiwan
        forward concerning economics of production and
        end uses could not justify a distinct treatment for a      (15)   Normal value for the cooperating Taiwanese
        product which could not be differentiated in its                  exporter was established on the basis of the
        physical characteristics.                                         comparable price actually paid or payable in the
                                                                          ordinary course of trade for the - like product in
                                                                         Taiwan.
        (ii) Like product
                                                                         Where substantial quantities of domestic sales of a
 (12)   The results of the investigation carried out by the               particular product type were sold at a loss, normal
        Commission have shown that the yarns manufac­                    value was established on the basis of the prices
                                                                         actually paid or payable for the remaining profi­
        tured in the exporting countries concerned by this
                                                                          table sales of this product type in accordance with
        proceeding use the same basic technology as those
        produced in the Community and are alike in their                 Article 2 (4) of Regulation (EEC) No 2423/88.
       essential physical and technical characteristics and
        in their end uses.
                                                                         (c) Indonesia
       The Commission also found that the yarns sold by
       the exporting countries in their domestic markets           (16)  Normal value for the cooperating Indonesian
       are alike, within the meaning of Regulation (EEC)                 exporter was established on the basis of the
       No 2423/88, to the yarns exported to the Commu­                   comparable price actually paid or payable in the
       nity.                                                             ordinary course of trade for the like product in
                                                                          Indonesia.
                                                                         Where a particular product type exported to the
                                                                         Community was not sold on the domestic market
                           C. DUMPING                                    or domestic sales were in insufficient quantities or
                                                                         made at a loss, given the difficulties in making a
                                                                         reasonable estimate of the value of differences
       (i) Normal value                                                  between product types, normal value was
                                                                         constructed on the basis of the cost of production
                                                                         plus a reasonable profit margin. The selling,
(13)   For all exporting countries, normal values were                   general and administrative expenses included in
       preliminarily established by the methods provided                 the cost of production and the profit margins were
       for by Article 2, (3), (4) and (5) of Regulation (EEC)            calculated by reference to the expenses incurred
       No 2423/88, for each individual product type                      and the profits realized by the exporter concerned
       exported to the Community.                                        on sales of other types of the like product on the
                                                                         domestic market.
       (a) Republic of Korea
                                                                         (d) India
(14)   Normal value for the cooperating Korean exporters
       was established on the basis of the comparable              (17)  Normal value for the cooperating Indian exporters
       price actually paid or payable in the ordinary                    was established on the basis of the comparable
       course of trade for the like product in the Republic              price actually paid or payable in the ordinary
       of Korea.                                                         course of trade for the like product in India.
 ---pagebreak---  3. 10. 91                              Official Journal of the European Communities                            No L 276/ 1 1
        Where a particular product type exported to the                  cooperating exporters given that, in these cases,
        Community was not sold on the domestic market                    data on a monthly basis was not available.
        or where such sales were in insufficient quantities
        or were made at a loss, given the difficulties in
                                                                         As the number of sales made by all three exporters
        making a reasonable estimate of the value of the
        differences between product types, normal value                  in the domestic market of the product types
        was constructed on the basis of the cost of produc­              exported to the Community was insignificant,
                                                                         normal value was constructed on the basis of the
        tion plus a reasonable profit margin. The selling,
        general and administrative expenses included in                  cost of production plus a reasonable profit margin.
        the cost of production and the profit margins were               This profit margin and the selling, administrative
        calculated by reference to the expenses incurred                 and general expenses included in the cost of
        and the profits realized by the exporter concerned               production were established, for two exporters, by
        on sales of other types of the like product on the               reference to the profit realized and to the expenses
        domestic market.                                                 incurred in their spinning and weaving activities.
                                                                         This was considered to be the most reasonable
                                                                         solution in view of the fact that neither the selling,
        In a certain number of cases it was not possible to              general and administrative expenses nor the profit
        follow this approach on establishing the profit                  could be determined by reference to the domestic
        margin as either no sales of other types of the like             sales of the like product and that in such circum­
        product were made by the particular exporters                    stances these costs and profit are, according to
        concerned or they were made at a loss or with                    Article 2 (3) (b) (ii) of Regulation (EEC) No
        profit margins not suitable for use. In those cases              2423/88, to be calculated by reference to the sales
        the profit margin used was the weighted average                  made by the exporter in the same business sector
        profit realized by other exporters in India on profi­            which, in the present case, is spinning and weaving.
        table sales of other types of the like product on the
        domestic market.
                                                                         For the third Turkish exporter, as its spinning and
                                                                        weaving activities did not show any profit during
                                                                         the investigation period, the weighted average
        (e) People 's Republic of China                                  profit margin of the other two exporters, as deter­
                                                                         mined above, was used.
 (18)   Since the People's Republic of China is a non­
        market economy country within the meaning of
        Article 2 (5) of Regulation (EEC) 2423/88, normal               (a) Export price
        value was based on information obtained in a
        market economy third country. To that effect, the
        complainant's suggestion that normal value be             (20)   Export prices were determined for the purpose of
        determined on the basis of the constructed value of             the preliminary findings on the basis of the prices
        the like product manufactured in India has been                 actually paid or payable for the products sold for
        retained in the absence of domestic sales in India              export to the Community.
       of the product types exported from the People's
        Republic of China. India is considered to be the
        most appropriate and reasonable choice of market          (21 ) One of the exporters concerned carried out some of
       economy third country among these subject to the                 its sales to the Community through a branch esta­
        proceeding as far as similarities in production tech­           blished in the Community. Export prices in respect
                                                                        of these sales were constructed on the basis of the
       niques and level of development are concerned.
                                                                        price at which the imported product was first
                                                                        resold to an independent buyer in the Community.
       For one of the producers concerned, the product                  These prices were adjusted in order to take account
       was not exported directly from China to the                      of all costs incurred between importation and resale
       Community but via Hong Kong. Normal value for                    including customs duties and a reasonable profit
       these exports, however, was not established on the               margin which was established on the basis of the
       basis of prices in Hong Kong as the product in                   profit margins normally made by independent
       question was merely transhipped through that                     importers of the product in question.
       country.
                                                                  (22)  One of the Chinese exporters involved made all of
                                                                        its sales to the Community through a company in
       (f) Turkey                                                       Hong Kong. The company in Hong Kong and
                                                                        some of the purchasers in the Community were
                                                                        financially linked to the Chinese exporter and are,
(19)   In view of the high level of inflation in Turkey                 for the purposes of this proceeding, considered to
       during the investigation period, normal values were              be related. However, given the fact that there were
       established on a monthly basis for one cooperating               no resales of the product in the same condition as
       exporter and on a quarterly basis for the other two              it had been imported and that the prices of the
 ---pagebreak---  No L 276/ 12                          Official Journal of the European Communities                                 3. 10 . 91
       goods sold for export to these related importers                Turkey, from all the exporters involved, the margin
       were equivalent to those to independent importers               of dumping being equal to the amount by which
       it was concluded that there was no need to resort to            the normal value, as established, exceeds the price
       the reconstruction of the export price, as these sales          for export to the Community.
       could be considered to have been made in the ordi­
       nary course of trade.                                     (27)  As far as the exporters from the People's Republic
                                                                       of China other than Guangying Spinning Co., Ltd
                                                                       are concerned and in accordance with previous
       (iii) Comparison                                                Community practice the Commission considered
                                                                       that, because of the lack of independence of these
 (23)  The normal value by product type was compared                   exporters in setting their export prices, a single
       with the export price for the corresponding type on             dumping margin should be determined. To do
       a transaction-by-transaction basis at an ex-works               otherwise would favour circumvention as exports to
       level and for the same level of trade. As far as diffe­         the Community could, in the future, be channelled
       rences in conditions and terms of sale are                      through the company with the lowest dumping
       concerned, allowances were         limited  to   those          margin.
       claimed which bore a direct relationship to the
       sales under consideration and for which satisfactory            In the case of Guangying Spinning Co., Ltd,
       evidence was submitted.                                         however, evidence was submitted establishing the
                                                                       fact that this company is a joint venture formed by
 (24)  Cooperating Korean, Indonesian               exporters          Chinese and Hong Kong partners, the latter being
       requested an allowance with regard to import                    related to a Community group, is free to establish
       charges on raw materials physically incorporated in             its export prices and can transfer profits obtained to
       the like product when destined for consumption in               its foreign shareholders subject to certain adminis­
       the country of origin and refunded or not collected             trative requirements. This led the Commission to
       in respect of the product exported to the Commu­                conclude that an individual dumping margin could
       nity. These allowances were granted to the extent               be determined for this company by comparing its
       that satisfactory justification was provided.                   actual export prices with the relevant normal value
                                                                       established for the People's Republic of China in
                                                                       accordance with recital ( 18).
 (25) Several Indian exporters claimed an allowance in
       respect of prior stage duties and indirect taxes on
       inputs to the like product destined for consump­          (28)  The weighted average margins of dumping for each
       tion in India which were refunded by the Indian                 exporter, expressed as a percentage of cif Commu­
       Government under the cash compensatory support                  nity frontier prices are as follows :
       system, in respect of the product exported to the
       Community. Following the examination of the
       evidence provided by the claimant exporters, the                (a) Republic of Korea
      amount actually refunded (8 % of the fob value of                     Choongnan Spinning         Co.,   Ltd,
      the exported goods) was found to correspond to the                    Seoul :                                 15,88%
      duties and indirect taxes effectively borne. The                     Taekwang Industrial Co., Ltd, Seoul : 3,68 % ;
      claim has, therefore, been fully allowed pursuant to
      Article 2 (10) (b) of Regulation (EEC) No 2423/88 .              (b) Taiwan
      Moreover, the Commission has been officially
                                                                            Chung Shing Textile Company Ltd,
      informed by the Indian authorities of the abolition                  Taipei :        '                         2,24 % ;
      of the cash compensatory support system with
      effect from 3 July 1991 and, therefore, it is reaso­             (c) Indonesia
      nable to expect that export prices will increase
      accordingly.                                                         P.T. Kewalram Indonesia, Bandung : 0,26 % ;
                                                                       (d) India
                                                                           Banswara Syntex Ltd, Bombay :             6,04 %
                                                                           The Coimbatore Pioneer Mills Ltd,
      (IV) Dumping margins
                                                                           Coimbatore :                              3,34 %
                                                                           Modern Syntex Ltd, Bombay :               3,32 %
      (a) Cooperating exporters                                            Rajasthan Spinning & Weaving Mills
                                                                           Ltd, Gulapura :                           2,00 %
(26)  Normal values and export prices were compared on                     Reliance Chemotex Industries Ltd,
      a transaction-by-transaction basis for each of the                   Bombay :                                  2,16 %
      exporters concerned. The preliminary examination
      of the facts shows the existence of dumping in                       The Shree     Meenakshi    Mills   Ltd,
      respect of imports of the product concerned origi­                   Madurai :                                11,82%
      nating in the Republic of Korea, Taiwan, Indo­                       Shree Satyam Spinning & Weaving
      nesia, India, the People's Republic of China and                     Mills Ltd, Secunderabad :                 9,84 % .
 ---pagebreak---  3 . 10 . 91                             Official Journal of the European Communities                            No L 276/ 13
          The weighted average of the dumping margins                     the most reasonable assumption was that the
          found for the sampled exporters above amounts to                dumping margins were equal to the highest
          3,76 %. This percentage is considered as the                    dumping margin found for a cooperating exporter
          dumping margin to be attributed to the coopera­                 in the same country.
          ting exporters in India not investigated :
                                                                          As to countries with a low coverage of exports, i.e.
          (e) People 's Republic of China                                Taiwan, Indonesia and Turkey it was considered
                                                                          that the information obtained from cooperating
              Chinatex     Non-Cotton      Yarns    &
                                                                          exporters could not be held to be representative
              Fabrics Import and Export Co.,                              and other available information, in particular that
              Beijing :                               29,69 %,            contained in the complaint for the determination
              Guangying Spinning Co., Ltd,                                of normal value and in Eurostat statistics with
              Guangzhou :                              0,42 % ;           regard to export prices, was used.
          (f) Turkey                                                      On the basis of the above, the following dumping
                                                                          margins, expressed as a percentage of cif Commu­
              Blsas Bursa Iplik Sanayii AS, Bursa :   10,14 %,           nity frontier prices, have been determined :
              Ceytas    Ceyhan     Tekstil    Sanayii                    — Republic of Korea :                         15,8% ,
              AS,Ceyhan, Adana :                       2,66 %,           — Taiwan :                                    24,5 %,
              Soktas Pamuk ve Tarim Ürünlerini                           — Indonesia :                                 21,1 %,
              Deger Pendirme Ticaret ve Sanayii                          — India :                                     11,8 %,
              AS, Söke :                               4,13 % .          — People's Republic of China :                29,6 %,
                                                                         — Turkey :                                    52,1 % .
 (29)    The dumping margins found for Guangying Spin­
          ning Co., Ltd, Guangzhou and P.T. Kewalram
          Indonesia, Bandung can be regarded as de minimis
         and consequently, for the purposes of this procee­                                   D. INJURY
         ding, imports from these two companies are consi­
          dered as not to have been dumped.
                                                                         (i) Cumulation of the effects of the dumped
                                                                             imports
         (b) Non-cooperating exporters
                                                                   (33)  In establishing the impact of the dumped imports
                                                                         on the Community industry, the Commission has
 (30)    In addressing the issue of establishing the dumping             considered the effect of all dumped imports from
         margin for the exporters which neither replied to               the countries concerned in the present investiga­
         the Commission's questionnaire within the esta­                 tion. In analysing whether cumulation of these
         blished time limit nor otherwise made themselves
                                                                         imports was appropriate, the Commission
         known, the Commission noted that the proportion                 examined whether the imports at dumped prices
         of imports into the Community, as recorded in                   contributed to the material injury suffered by the
         Eurostat statistics, covered by the exports reported            Community producers. For that purpose, the
         by the cooperating exporters varied according to                Commission has considered the comparability of
         the countries concerned. Thus for the Republic of               the products imported from all the countries
         Korea, India and the People's Republic of China                 concerned in terms of physical characteristics and
         the reported exports covered almost the totality of             interchangeability of end uses. It has also examined
         imports into the Community as recorded in                       the volumes imported, the level of prices of these
         Eurostat. By contrast, for Taiwan, Indonesia and                imports and the extent to which imports from each
         Turkey this proportion showed a large degree of                 country competed in the Community with each
         non-cooperation.                                                other and with the like product of the Community
                                                                         industry. After examination of these facts the
(31 )    In these circumstances, it was concluded that, in               Commission found that with the exception of the
         applying Article 7 (7) (b) of Regulation (EEC) No               Republic of Korea (see recital (34)) and for the
         2423/88 , two different approaches were required for            purpose of establishing the level of injury sustained
         the establishment of dumping margins for non-                   by the Community industry, regard should be paid
         cooperating exporters in order that cooperating                 to the cumulated effect of the dumped imports
         exporters would not be discriminated against and,               from all exporting countries concerned.
         at the same time, that measures to be taken would
         constitute an effective protection for the Commu­         (34)  It was considered that, given the small and
         nity industry.                                                  distinctly lower market share held since the end of
                                                                         1987 by the Republic of Korea compared to the
(32)     For countries with a high coverage of exports,                  other five countries concerned, there were insuffi­
         namely the Republic of Korea, India and the                     cient grounds to cumulate the imports from that
         People's Republic of China it was considered that               country with those of the remaining five exporting
 ---pagebreak--- No L 276/ 14                         Official Journal of the European Communities                                   3 . 10 . 91
      countries for which, the similar and simultaneous                 (iv) Situation of the Community industry
      effect on the Community industry must be assessed
      jointly.
                                                                        (a) Production and capacity utilization
      (ii) Volume and market share of dumped                    (38)    The volume of production of the product
           imports                                                      concerned by the Community producers investi­
                                                                       gated remained generally stable on an annual basis
(35) The volume of dumped imports into the Commu­                       during the period from 1986 to 1989 .
      nity of the product concerned originating in the
      exporting countries which are the subject of the                  Regarding capacity utilization, it should be noted
      proceeding, other than the Republic of Korea,                     that the product concerned is generally manufac­
      increased from 7 877 tonnes in 1986 to 17 672                     tured on equipment which is also used for the
     tonnes during the investigation period (January                    manufacture of other products (e.g. cotton and
      1989 to December 1989). Imports from the Repu­                   viscose yarns). Because of this, it is not possible in
     blic of Korea in the same period increased from                    all cases to determine capacity utilization rates
      713 tonnes to 976 tonnes.                                        which are specific for that product. In spite of these
                                                                       difficulties, capacity utilization in respect of the
                                                                        product concerned has been estimated to have
(36) The development of imports, assessed in the light                  remained stable for the investigated producers, on
      of the apparent Community consumption over the                   average since 1986, at 75 % .
      same period led to a combined market share of the
      Community market held by the exporting coun­
     tries concerned, other than the Republic of Korea,         (39)   The above description reflects the situation of the
     taken together, which increased from 3,7 % in                     Community producers investigated. The overall
      1986 to 9,5 % during the investigation period. The               situation of the Community industry presents more
      market share held by the Republic of Korea in the                negative aspects. Thus, the total volume of produc­
     same period increased from 0,3 %. to 0,5 % .                      tion in the Community, as estimated by the
                                                                       complainant, has decreased from 202 700 tonnes in
                                                                        1986 to 157 150 tonnes during the investigation
                                                                       period. This decline in production appears to be in
     (iii) Prices of dumped imports                                    line with the fact that a high number of production
                                                                       units were closed down in the Community, (see
                                                                     . recital (43).
(37) Prices of the imported product from the six coun­
     tries concerned were, during the investigation
     period, significantly below the prices practised by
     the Community producers. Price undercutting was                   (b) Sales, stocks and market share
     established for each of the exporters investigated by
     comparing, at the same level of trade, prices of the      (40)    The volume of sales of the product concerned by
     exporter concerned for sales to the first indepen­                the Community industry was in line with that of
     dent customer in the Community with weighted                      production since 1986. As a result, the year-end
     average prices of the Community producers.                        stock levels showed no real trend. This develop­
                                                                       ment in sales volume compared to that of the
     This comparison was made on a per product type                    apparent Community consumption led to a
     basis for each of the types imported which were                   decrease in market share from 90,4 % in 1986 to
     considered for the dumping determination. In cases                79,0 % during the investigation period.
     where a particular product type imported had not
     been sold during the investigation period by any of
     the Community producers, the price of the nearest
                                                                       (c) Prices
     resembling type, duly adjusted, was used.
                                                               (41 )   Because of the continued downward pressure on
     Adjustments were also made to ensure compara­                     prices resulting from the dumped imports,
     bility in terms of transport costs deducted from the              Community producers were obliged, in general, to
     Community selling prices as well as in terms of                   maintain their prices when the upward develop­
     customs duty and importers' profit margin added to                ment of costs of production would normally have
     the import prices, to the extent it was applicable.               led to increasing them. In many cases, since the
                                                                       end of 1988 they were, in order to maintain their
     The results of the comparison showed margins of                   capacity utilization and market share, even forced
     undercutting for all countries concerned and for                  to reduce their prices to levels which 1 in most cases
     almost all the exporters investigated. The weighted               did not cover the costs of production and which, in
     average undercutting, expressed at a free-at­                     any case, did not allow a reasonable profit to be
     Community-frontier level, ranged up to 56,48 % .                  made.
 ---pagebreak---  3 . 10 . 91                               Official Journal of the European Communities                             No L 276/ 15
(d) Profitability                                                          maintain capacity utilization as high as possible in
                                                                           an attempt to avoid greater deterioration of profita­
 (42)     While in 1986 and 1987 profits could be kept                     bility which otherwise would have occurred. As a
          stable by rationalization factors such as moderniza­              result, economic indicators such as production,
                                                                           sales, stocks and market share did not show, for
          tion of equipment and reduction of the personnel
          employed, these remedies could no longer                          these producers, the negative trends experienced by
          compensate in 1988 and 1989 for the increasing                    the Community industry as a whole. These indica­
          penetration of the Community market by the low                    tors do not clearly reflect, in all cases, the difficult
          priced imports concerned. Thus, the Community                    market conditions in which the Community
          producers investigated showed returns on sales of                industry has had to operate. Injury must, in these
          more than 4,6 % on average in 1986 and 1987 but                  circumstances, be assessed mainly, on the basis of
          incurred losses in 1988 and 1989 amounting, on                   other parameters such as prices, profitability and
          average, to 1,3 % and 5,9 % in the respective years.             employment.
                                                                           The price erosion, the deterioration of the financial
          (e) Plant closures                                               situation with insufficient profitability or even
                                                                           losses, and the reduction in employment affecting
                                                                           practically all the Community producers, all led the
 (43)     The general deterioration of the financial situation             Commission to conclude, for the purpose of its
          of the Community industry since 1988 has led to                  provisional findings, that the Community industry
          drastic decisions such as further restructuring and              has been suffering material injury within the terms
          closures of production units in order to stop further            of Article 4 (1 ) of Regulation (EEC) No 2423/88 .
          decay.
          From 1986 to 1989, 77 production units in nine
          Community countries were closed down either as a
          result of restructuring or of cessation of activities.                       E. CAUSATION OF INJURY
          (f) Employment                                             (46)  The Commission examined whether the injury
                                                                           suffered by the Community industry- had been
(44)      More than 1 000 jobs have been lost by the                       caused by the dumped imports and whether other
          Community producers investigated during 1988                     factors might have caused or contributed to that
          and 1989. This represents nearly a 20 % reduction                injury.
          of the personnel employed by them in 1987 and is
          the result of an ongoing restructuring intended to
          defend profitability and which goes beyond a mere
          modernization investment programme.                              (i) Effect of dumped imports
         With regard to the employment situation of the              (47)  On its examination the Commission found that the
         whole cotton type spinning sector which includes                  increase   in   volume   and    market   share  of the
         the polyester spinning industry in the Community,                 dumped imports from the six countries involved in
         the combined effect of restructuring plans and                    the proceeding coincided with the deterioration of
         closures of factories is estimated to have led to                 the situation of the Community industry. As
         more than 10 000 jobs being lost in 1988 and 1989                 explained before in recital (41 ), as a result of the
         alone.                                                            low prices at which the imported yarns were sold
                                                                           in the Community market, the Community produ­
                                                                           cers were either prevented from increasing their
                                                                           selling prices or forced to reduce them in order to
         (v) Conclusion                                                    maintain their levels of capacity utilization and
                                                                           market share. This suppression of price increases
(45)     In assessing the situation of the Community                       and reduction in prices led, in turn, to a general
         industry, account has to be taken of the fact that                decrease in profitability and employment in the
         the manufacture of the product concerned is a                     Community. The development of negative parame­
         capital intensive business in which low capacity                  ters in these areas, specifically demonstrated by the
         utilization becomes generally more costly than to                 financial losses incurred and the jobs lost in 1988
         maintain high capacity utilization and sell all the               and 1989 corresponds in time with the highest
         production at prices which neither allow an                       penetration of the imports concerned. However,
         adequate return nor even cover the full costs of                  given the negligible and steady market share held
         production.                                                       by the Republic of Korea since 1987, the Commis­
                                                                           sion considers that dumped imports from this
         In view of this characteristic of the industry,                   country have not significantly contributed to the
         Community producers investigated decided to                       injury suffered by the Community industry.
 ---pagebreak---  No L 276/ 16                            Official Journal of the European Communities                                  3. 10 . 91
       (ii) Effect of other factors                                       than the Republic of Korea, gained a Community
                                                                          market share which increased from 3,7 % to 9,5 % .
                                                                          By contrast, estimated sales by the Community
 (48)  The Commission examined whether factors other                      industry in the Community market decreased
       than the dumped imports might have caused or                       distinctly faster (by 23,3 %) than Community
       contributed to the injury suffered by the Commu­                   consumption and, consequently, the corresponding
       nity industry. The Commission particularly                         market share also decreased from 90,4 % to
       examined the evolution of Community exports to                     79,0 % .
       third countries, the evolution and impact of
       imports from third countries not included in this
       proceeding and the trend of consumption in the               (52)  The Commission has also examined the argument
       Community market.                                                  that, because of the existence of quantitative restric­
                                                                          tions applied to the imports of the product in ques­
                                                                          tion originating in some of the countries
 (49)  Exports by the Community industry to third coun­                   concerned, no injury could be caused to the
       tries only represent approximately 6 % of total                    Community industry by these imports. The
       sales and have not shown any significant changes                   Commission considers, in this respect, that quanti­
       since 1986.                                                        tative restrictions protect the Community industry
                                                                          from excessive volumes of imports but do not
                                                                          necessarily prevent injury resulting from unfair
 (50)  Imports from third countries not included in the                   trading practices such as dumping imports at very
       proceeding have been increasing since 1986 and                     low prices.
       reached an estimated share of 10,1 % of the
       Community market during the investigation
       period. More than half of these imports originate in         (53)  Consequently, the Commission has concluded that,
       Egypt and Brazil which have been steadily gaining                  for purposes of its provisional findings, the dumped
       market share since 1986. Some of the exporters                     imports originating in Taiwan, Indonesia, India, the
       argued that the non-inclusion of these two coun­                   People's Republic of China and Turkey because of
       tries in the proceeding would be particularly discri­              their prices and their penetration in the Commu­
       minatory.                                                          nity market and the resulting loss of profitability,
                                                                          market share and employment, have, taken in isola­
                                                                          tion, caused material injury to the Community
      The Commission has noted tjie substantial increase                  industry.
      in the imports from Egypt and Brazil as well as the
      low level of their prices as they appear in the
       Eurostat statistics. In this last respect the Commis­
      sion considers that no conclusions can be drawn
       from the prices shown in the Eurostat statistics as                            F. COMMUNITY INTEREST
      these mask the extremely important differences in
      prices among different product types and no infor­
      mation is available concerning the product types
      being exported from Egypt and Brazil.                        (54)  The purpose of anti-dumping duties is, in general,
                                                                         to stop distortion of competition arising from
      The Commission has also noted that no evidence
                                                                         unfair commercial practices and thus to re-establish
                                                                         open and fair competition on the Community
      concerning the existence of dumping practices by                   market, which is fundamentally in the general
      Egypt and Brazil has been received.                                Community interest.
      Furthermore the Commission considers that even if                  The deterioration of the Community industry is
      it was admitted that the imports from Egypt and                    especially noticeable from the decrease in profitabi­
      Brazil, whether dumped or non dumped, had                          lity and from the number of production units
      caused injury to the Community industry, this                      which have shut down during the reference period.
      would not change the fact that the injury caused by                This deterioration appears to have continued in
      the dumped imports originating in the countries                    1990 and would, in all likelihood, continue in the
      concerned by the proceeding other than the                         future if no measures to counteract the injurious
      Republic of Korea is material.                                     dumping practices were taken.
(51 ) Apparent consumption of the product concerned                (55)  Some exporters have argued that an increase in the
      in the Community decreased during the investiga­                   price of the imported yarns as a result of the adop­
      tion period by 12,3 % when compared to the                         tion of anti-dumping measures would be detri­
      consumption in 1986. This decline in consumption                   mental to the interest of the Community weavers.
      explains only in part the decrease in sales by all                 The Commission notes that neither weavers nor
      Community producers, but not the reduction of                      garment makers in the Community have expressed
      their market share. Thus, in that period, dumped                   any objections to the possible adoption of protec­
      imports from all the countries concerned, other                    tive measures in this proceeding and that, in any
 ---pagebreak---   3 . 10 . 91                             Official Journal of the European Communities                            No L 276/ 17
           case, the incidence of a certain price increase on              certain profit margin for the importer, as appli­
           the cost of the processing industries does not                  cable, were compared, during the investigation
           appear to be significant enough to render these                 period, with the weighted average cost of produc­
           industries less competitive.                                    tion of the Community producers investigated, for
                                                                           the corresponding product type, plus a 5 % profit
                                                                           margin.
 (56)      In conclusion, after balancing the various interests
           involved, the Commission considers that the adop­
           tion of measures in the present case will
                                                                           These comparisons show for all exporters
           re-establish fair competition by eliminating the
                                                                           concerned, lower export prices with margins which,
           injurious effects of dumping practices.
                                                                           expressed on a weighted average basis as a percen­
                                                                           tage of the free-at-Community-frontier price,
           The Commission considers that it is therefore in                varied, according to the exporter concerned,
           the Community interest to adopt anti-dumping                    between 5,55 % and 82,72 % .
           measures in order to prevent further injury being
           caused by the dumped imports concerned before
           the end of the proceeding. These measures should         (60)   Since, in all cases, the margins of dumping found,
           take the form of provisional anti-dumping duties.               in respect of each particular exporter, were below
                                                                           the corresponding increases in export prices neces­
                                                                           sary to remove the injury, as calculated above,
                                                                           provisional duties to be imposed should therefore
                                                                           correspond to the dumping margins established.
                                 G. DUTY
                                                                    (61 )  For the cooperating Indian exporters not selected
                                                                           for investigation, the Commission, following the
                                                                           methodology described in recital (5), applied the
                                                                           weighted average duty of the investigated exporters.
 (57)      For the purpose of establishing the level of the
           provisional duty the Commission took account of
           the dumping margins found and of the amount of
           duty necessary to eliminate the injury sustained by      (62)   For the reasons given in recital (27), the Commis­
           the Community industry.                                         sion has established a single duty for all the
                                                                           Chinese exporters with the exception of the joint
                                                                          venture concerned for which, in the absence of
                                                                           dumping (see recital (29)) no duty is established.
          (i) Cooperating exporters
 (58)     Since the injury consists mainly of lack of profita­
          bility or losses, the removal of such injury requires           (n) Non-cooperating exporters
          that industry should be put in a position in which
          its prices can be increased to a profitable level. In
          order to achieve this, export prices should be            (63)  In establishing the level of provisional duty for
          increased accordingly.                                          exporters which neither replied to the question­
                                                                          naire within the established time limit nor other­
                                                                          wise made themselves known, the Commission
          For calculating the necessary price increase, the
          Commission considered that prices of the dumped                 took account of the level of exports coverage of
                                                                          each of the countries concerned as described in
          imports had to be compared with the cost of
                                                                          recital (30).
          production of the Community producers investi­
          gated plus a profit margin of 5 % . This profit
          margin is based on the level of profits realized on
          average by Community producers prior to the dete­               For countries with a high coverage of exports, the
          rioration of their profitability as a result of the             Commission considered it appropriate to impose a
          dumped imports. The Commission considers that                   duty at the level of the highest duty determined for
          this profit margin is the minimum required to                   the cooperating exporters in the country
          ensure the viability of the Community industry                  concerned. Indeed, it would create an opportunity
          concerned.                                                      for circumvention of the duties and would consti­
                                                                          tute a bonus for non-cooperation to hold that the
                                                                          duties for non-cooperating exporters in a particular
(59)      On this basis, the weighted average export prices               country were any lower than the highest duty
          for each product type, on a free-at-Community­                  determined in that country with regard to any
          frontier level increased by customs duties and a                exporter who had cooperated in the investigation.
 ---pagebreak---  No L 276/ 18                             Official Journal of the European Communities                                   3. 10 . 91
         With regard to countries with a low coverage of                    may make their views known and request a
         exports for which the information obtained from                    hearing. Furthermore, it should be stated that all
         cooperating exporters could not be considered to                   findings made for the purpose of this Regulation
         be representative, other information available to the              are provisional and may have to be reconsidered for
         Commission      was  used   to   establish  both   the             the purpose of any definitive duty which the
         dumping margin (see recital (31 )) and the increase                Commission may propose,
         in export prices necessary to eliminate the injury.
         In particular, information contained in the
         complaint and in Eurostat statistics, duly adjusted,
         was taken into account. Since dumping margins
         thus established were in all cases below the corres­       HAS ADOPTED THIS REGULATION :
         ponding increase in export prices, duties should be
         imposed at the level of the dumping determined.
                                                                                               Article 1
         H. TERMINATION OF THE PROCEEDING IN
            RESPECT       OF     IMPORTS        OF    SEWING
                                                                     1 . A provisional anti-dumping duty is hereby imposed
            THREAD ORIGINATING                IN    ALL THE         on imports of single and multiple (folded) or cabled yarns
            COUNTRIES CONCERNED AS WELL AS IN                       containing 85 % or more by weight of polyester staple
            RESPECT OF IMPORTS OF ALL OTHER                         fibres, not put up for retail sale, falling within CN codes
            YARNS      CONCERNED         ORIGINATING        IN      5509 21 10, 5509 21 90, 5509 22 10 and 5509 22 90 and
                      THE REPUBLIC OF KOREA                         other yarns of polyester staple fibres mixed mainly or
                                                                    solely either with artificial staple fibres or with cbtton, not
                                                                    put up for retail sale, falling within CN codes 5509 51 00
 (64)    In view of the fact that the provisions of Article 4       and 5509 53 00 and originating in Taiwan, Indonesia,
        (5) of Regulation (EEC) No 2423/88 are not met as           India, the People's Republic of China and Turkey.
        far as the Community producers of sewing thread
        are concerned, as described in recital (4) above, the       2. The rate of the duty applicable to the net free-at­
        Commission considers that the proceeding should             Community-frontier price before duty, shall be as
        be terminated in respect of imports of sewing               follows :
        thread falling within CN code 5508 10 11 origina­
        ting in all the countries concerned without protec­                                                       Rate
                                                                                                                            Tartc
        tive measures being imposed.                                                                                of   additional
                                                                                                                  duty      code
                                                                                                                    %
(65)    As referred to in recital (47), imports of the product
        concerned originating in the Republic of Korea              Taiwan                                       24.5      8578
        have not significantly contributed to the injury
                                                                    Indonesia                                    21,1      8579
        suffered by the Community industry. In these
        circumstances, the Commission considers that the            India                                         11,8     8580
      • proceeding should be terminated in respect of
        imports of yarns other than sewing thread origina­          People's Republic of China                   29.6      8581
        ting in this country without protective measures            Turkey                                       52,1      8582 :
        being imposed.
                                                                    with the exception of imports which are manufactured
(66)    No objections to these conclusions were raised in           and sold for export to the Community by the following
        the Advisory Committee.                                     companies. These companies shall be subject to the rate
                                                                    of duty mentioned hereunder.
(67)    The complainant and the 'Federation Interna­                                                              Rate
        tionale de la Filterie' were informed of the facts                                                                  Taric
                                                                                                                   of    additional
        and principal considerations on the basis of which                                                        duty      code
        the    Commission     intended     to   terminate  the                                                     o/o
        proceeding with regard to imports of sewing thread          Taiwan
        originating in all the countries concerned as well as
        imports of all other yarns concerned originating in         Chung Shing Textile Company Ltd,
        the Republic of Korea and did not object to them.           Taipei                                         2,2     8583
                                                                    India
                                                                    Rajasthan Spinning & Weaving Mills
                       I. FINAL PROVISION
                                                                    Ltd, Gulapura                                  2,0     8584
                                                                    The Shree      Meenakshi      Mills   Ltd,
                                                                    Madurai                                      11,8      8585
(68)    In the interest of sound administration, a period
        should be fixed within which the parties concerned          Deepak Spinners Ltd, Baddi, Solan              3,7     8586
 ---pagebreak---  3 . 10 . 91                           Official Journal of the European Communities                               No L 276/ 19
                                            Rate
                                                      Taric        3. None of the duties shall apply to imports of the
                                              of   additional      products specified in paragraph 1 manufactured and sold
                                            duty      code
                                             %                     for export to the Community by P.T. Kewalram Indo­
                                                                   nesia, Bandung, Indonesia (Taric additional code ; 8595)
 Gokak Patel Volkart Ltd, Gokak Mills                              and Guangying Spinning Co. Ltd, Guangzhou, People's
 Division, Bombay                            3,7     8586
                                                                   Republic of China (Taric additional code : 8596).
 Himachai Fibres Ltd, New Delhi              3,7     8586
                                                                   4. In cases where the exporting company is not the
 Hind Syntex Ltd, Dewas                      3,7     8586
                                                                   same as the producing company, the rate applicable to
 Indo Rama Synthetics (India) Ltd,                                 the producing company shall apply.
 New Delhi                                   3,7     8586
 Loyal Textile Mills Ltd, Kovilpatti         3,7     8586          5. The provisions in force concerning customs duties
                                                                   shall apply.
 Orient Syntex Ltd, Bombay                   3,7     8586
 Precot Mills Ltd, Coimbatore                3,7     8586          6.    The release for free circulation in the Community of
                                                                   the products referred to in paragraph 1 shall be subject to
 Rajasthan Textile Mills, (Prop. Sutlej                            the  provision of a security, equivalent to the amount of
 Cotton Mills Ltd), Bhawanimandi             3,7     8586
                                                                   the  provisional duty.
 Sholingur Textiles Ltd, Dindigul            3,7     8586
 Soundaraja Mills Ltd, Dindigul              3,7     8586                                    Article 2
 The Madhavnagar Cotton Mills Ltd,                                 The anti-dumping proceeding concerning the imports of
 Madhavnagar                                 3,7     8586
                                                                   sewing thread falling within CN code 5508 10 11 and
 Vardhman Spinning & General Mills                                 originating in the Republic of Korea, Taiwan, Indonesia,
 Ltd, Ludhiana                               3,7     8586          India, the People's Republic of China and Turkey is
 Yam Syndicate Ltd, Calcutta                 3.7     8586          hereby terminated.
 Modern Syntex Ltd, Bombay                   3,3     8587
                                                                                             Article 3
 Sree Satyam Spinning & Weaving
 Mills Ltd, Secunderabad                     9.8     8588         The anti-dumping proceeding concerning imports of
 Reliance Chemotex Industries Ltd,                                 certain yarns of staple polyester fibres falling within CN
 Bombay                                     2,1     8589           codes 5509 21 10, 5509 21 90, 5509 22 10, 5509 51 00 and
The Coimbatore Pioneer Mills Ltd,                                  5509 53 00 and originating in the Republic of Korea is
 Peelamadu, Coimbatore                      3,3     8590        . hereby terminated.
 Banswara Syntex Ltd, Bombay                 6,0    8591
                                                                                             Article 4
Turkey
                                                                  Without prejudice to Article 7 (4) (b) of Regulation (EEC)
Bisas Bursa Iplic Sanayii AŞBursa          10,1     8592           No 2423/88, the parties concerned may make known
Soktas Pamuk ve Tarim Ürünlerini                                  their views and apply to be heard orally by the Commis­
Değer Pendirme Ticaret ve Sanayii                                 sion within one month of the date of entry into force of
                                                                  this Regulation.
AŞSöke                                      4,1     8593
Ceytas       Ceyhan    Tekstil ' Sanayii                                                     Article 5
AŞCeyhan, Adana                             2,6     8594.
                                                                  This Regulation shall enter into force on the day follo­
                                                                  wing that of its publication in the Official Journal of the
The free-at-Community-frontier price shall be net if the           European Communities.
actual conditions of payment provide for payment within
30 days of the arrival of the goods on the customs terri­         Subject to Articles 11 , 12 and 13 of Regulation (EEC) No
tory of the Community. It shall be increased by 1 % for           2423/88, Article 1 of this Regulation shall apply for a
each further month by which the period for payment is             period of four months, unless the Council adopts defini­
extended.                                                         tive measures before the expiry of that period.
                  This Regulation shall be binding in its entirety and directly applicable in all Member
                  States.
                  Done at Brussels, 27 September 1991 .
                                                                            For the Commission
                                                                             Frans ANDRIESSEN
                                                                                Vice-President