CELEX: 51993PC0508
Language: en
Date: 1993-10-26
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 738/92 imposing a definitive anti-dumping duty on imports of cotton yarn, originating in Brazil and Turkey

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(93) 508 final
                                                   Brussels, 26 October 1993
                            Proposal for a
                  COUNCIL REGULATION (EEC)
     amending Regulation (EEC) No 738/92 imposing a definitive
      anti-dumping duty on imports of cotton yarn, originating in
                          Brazil and Turkey
                   (presented by the Commission)
 ---pagebreak---                           EXPLANATORY MEMORANDUM
1. Council Regulation (EEC) No 738/92 imposed a definitive anti-dumping duty on
   imports of cotton yam falling within CN codes 5205 11 00 to 5205 45 90 and
   5206 11 00 to 5206 45 90, originating in Brazil and Turkey.
2. This Regulation stated that the Commission would initiate a review proceeding for
   those exporters who supplied sufficient evidence to the Commission to show that they
   had not exported the products concerned to the Community during the original
   investigation period (1 January to 31 December 1989), that they subsequently started
   such exports or have a firm intention of doing so, and that they are not related
   to, or associated with, any of the companies subject to the anti-dumping duty
   (so-called "newcomers")
3. Four Brazilian companies and one Turkish company requested a newcomer investigation
   and on the basis of the evidence submitted, the Commission has accordingly initiated
   a review with regard to these companies.
4. Normal value has been determined either on the basis of the comparable price actually
    paid or payable in the ordinary course of trade in the country of origin or by adding
   cost of production and a reasonable amount for sales, general and administrative costs
    and profit.
5.  For three Brazilian and the Turkish producers, export prices were determined on the
    basis of the prices actually paid for the cotton yam sold for export to the Community.
    In the case of one Brazilian producer who sold exclusively to a related importer in the
    Community, export prices were constructed on the basis of the price to the first
    independent customer in the Community, adjusted to take account of all costs incurred
    between importation and resale and for a reasonable amount of profit.
6.  The examination of the facts showed the following dumping margins:
    -   Brazil
        Cocamar Ltda.                           12.3%
        Corduroy S.A.                           11.7%
        Cotece S.A.                             10.9%
        Norfil S/A.                              8.7%
    -   Turkey
        Kula Mensucat Fabrikasi AS.              8.4%
7.  No request for review of the findings on injury was made.
 ---pagebreak--- In accordance with Article 13(3) of Regulation (EEC) No ?A2?*IM. «i.i. .-'i«.«- i c* r .1
dumping duties should not exceed the dumping margni established s» <i K^ ;^o iT ; ih
lesser doty would be adequate to remove the injury.
In the present case, since the dumping margins established are lower than the injuiy
margins found in the original proceeding, the Commission proposes that
Regulation (EEC) No 738/92 of 23 March 1992 be amended and that the level of duly
applicable to each of the five companies concerned be the level of the dumping margin?
established.
 ---pagebreak---                                         Proposal for a
                               COUNCIL REGULATION (EEC)
               amending Regulation (EEC) No 738/92 imposing a definitive
                anti-dumping duty on imports of cotton yarn, originating in
                                       Brazil and Turkey
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on protection against
dumped or subsidized imports from countries not members of the European Economic
Community(1), and in particular Article 14 thereof,
Having regard to the proposal submitted by the Commission after consultation within the
Advisory Committee as provided for under the abovementioned Regulation,
Whereas:
                                  A. PREVIOUS PROCEDURE
(1)   By Regulation (EEC) No 738/92(2), the Council imposed a definitive anti-dumping duty
      on imports of cotton yarn falling within CN codes 5205 11 00 to 5205 45 90 and
      5206 11 00 to 5206 45 90, originating in Brazil and Turkey.
(2)   In that Regulation the Council noted that the Commission would be ready to initiate
      without delay a review proceeding for the exporters who supplied sufficient evidence
      to the Commission that they had not exported the products concerned to the Community
      during the original investigation period (1 January to 31 December 1989), that they only
      started such exports after the said period or have a firm intention of doing so and that
      they are not related to, or associated with, any of the companies subject to the anti-
      dumping duty (so-called "newcomers").
                                          B. REVIEW
(3)   Four Brazilian companies, Cocamar Ltda., Corduroy S.A., Cotece S.A., Norfil S/A. and
      a Turkish company, Kula Mensucat Fabrikasi AS., made themselves known to the
      Commission, claiming that they had not exported the products concerned during the
      investigation period and only commenced doing so after that period. They also claimed
      that they were not related to any of the companies subject to the anti-dumping duties
      and requested that a newcomer review be opened.
(i)   O J N o L 2 0 9 , 2.8.1988, p. 1
(2)
      O J N o L 8 2 , 27.3.1&92, p. 1.
 ---pagebreak--- (4)  Those companies provided, on request, evidence of the facts they alleged. The evidence
     provided has been considered sufficient to justify the initiation of a review in
     accordance with the provisions of Articles 7 and 14 of Regulation (EEC) No 2423/88
     (herinafter referred to as "the Basic Regulation"). By a notice published on
     23 September 1992(3), the Commission, after consultation of the Advisory Committee,
     initiated a review of Regulation (EEC) No 738/92 with regard to the five companies
     cited above and commenced its investigation.
                              C RESULT OF INVESTIGATION
     1. Normal value
(5)  Normal value has been determined on the basis of the comparable price actually paid
     or payable in the ordinary course of trade for the like product intended for consumption
     in the country of origin when sales on the domestic market were representative and
     profitable.
     When there were no such sales, normal value has been constructed in accordance with
     Article 2(3)(b)(ii) of the Basic Regulation by adding cost of production, including a
     reasonable amount for sales, general and administrative costs and a margin for profit.
     In the case of non-profitable sales in Brazil, their margin was based on the average
     profit of the domestic sales of the product concerned of the other exporting producers.
      2. Export price
 (6)  lot tluee liia/lliaii produce»?; ami the Iwlhli pimfmc-r, ^pm» p«h«^ weie tleteimiMed
      by the Commission on the basis of the prices actually paid for the cotton yam sold for
     export to the Community.
     In the case of one Brazilian producer which sold exclusively to a related importer in
     the Community, export prices were constructed pursuant to Article 2(8)(b) of the
     Basic Regulation and were therefore based on the price to the first independent
     customer in the Community, adjusted to take account of all costs incurred between
     importation and resale and for a reasonable amount of profit.
     3. Comparison
(7)  For the purpose of a fair comparison between normal value and export price, account
     was taken of differences affecting price comparability in accordance with Article 2(9)
     and (10) of the Basic Regulation, namely commissions, credit terms, transport,
     insurance, handling, packing and other related costs. Export prices, on a transaction-by-
     transaction basis, were compared with normal value at ex-works level, at the same level
     of trade.
(3)
     OJ No C 244, 23.9.1992, p. 14.
 ---pagebreak---       4. Dumping margin
(8)   The examination of the facts showed the existence of dumping with respect to the
      cotton yarn exported by the five companies. The margins of dumping, being equal to
      the amount by which normal value exceeds the price for export to the Community,
      expressed as a percentage of total CIF value, were as follows:
      -    Brazil
           CocamarLtda.                           12.3%
           Corduroy S.A.                          11.7%
           CoteceS.A.                             10.9%
           Norfil S/A.                             8.7%
      -    Turkey
           Kula Mensucat Fabrikasi A.S.            8.4%
       5. Injury
 (9)   No request for review of the findings on injury was made and there is no reason to
       doubt the validity of the injury findings in the original investigation.
                    D. AMENDMENT OF THE REVIEWED MEASURES
 (10) In accordance with Article 13(3) of the Basic Regulation, the amount of anti-dumping
       duties should not exceed the dumping margin established and be less if such lesser duty
       would be adequate to remove the injury.
       In the present case, since the dumping margins established are lower than the injury
       margins found in the original proceeding, the Commission considers that
       Regulation (EEC) No 738/92 should be amended and that the level of duty applicable
       to each of the five companies concerned should be the level of the dumping margins
       established (see recital (9)).
 (11) The five exporting companies and the complainant have been informed of those
       findings and have raised no objection.
 (12) Since the review is limited to one Turkish and four Brazilian producers, it does not
       affect the date on which Regulation (EEC) No 738/92 will expire pursuant to
       Article 15(1) of the Basic Regulation,
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                          Article 1
Article 1(2) of Regulation (EEC) No 738/92 is hereby amended as follows:
1.    Under (a) the following is added:
      Cocamar                                      12.3%                8735
      Cooperativa de Cafeicultores
      e Agropecuaristas de Maringâ Ltda.
      Corduroy S.A.                                11.7%                8736
       Indûstrias Têxteis
       Cotece S.A.                                 10.9%                8737
       Norfil S/A.                                  8.7%                 8738
       Indûstria Têxtil
2.     Under (b) the following is added:
       Kula Mensucat Fabrikasi AS.                  8.4%                 8739
                                          Article 2
This Regulation shall enter into force on the day following that of its publication in the
Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,                                                   For the Council
                                                                     The President
 ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM (93) 508 final
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