CELEX: 51980PC0837
Language: en
Date: 1980-12-10
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of certain polyester yarn originating in the United States of America (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80) 837
Vol. 1980/0267
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(80)837 final
                                                        Brussels , 10 December 1980
                                     Proposal for a
                              COUNCIL REGULATION ( EEC )
             imposing a definitive anti-dumping duty on imports
                                                                                    \
                of certain polyester yarn originating in the
                              United States of America
                ( submitted to the Council by the Commission )
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C0MC80) 837 final             ^           >•
 ---pagebreak---                                         EXPLANATORY MEMORANDUM
                                                                            1 .       .            .  .      ;
  The Commission , by Regulation ( EEC ) No 2297 / 80 , imposed a provisional \
  anti-dumping duty on certain polyester yarn originating in the United                                           . -
  States of America ,,              This Regulation was subsequently amended by Regulation
   ( EEC) No 2695 /80           to exclude two US producers from the scope of application
  of the duty and further amended by Regulation ( EEC) No 2843 /80^ to exclude
  imports of sewing thread *                     The provisional duty continues to operate until
  the entry into force of . an act of the Council adopting definitive measures
  or , at the latest , until 2 January 1981 *                              „
  A month before expiry of this time limit the Commission , pursuant to the
                                                                    4  .        .         .       ..    .     '
  anti-dumping Regulation ( EEC ) No 3017 / 79                         is required to submit to the
  Council a proposal concerning the adoption of definitive measures *
                                                                                  . V
  Since the imposition of the provisional duty the Commission 's services have
■     -       .                                                                                  -                  JS
  continued their investigation of the facts *                             This has established that fajs .
  non-textured yarn no dumping has occurred on exports from three companies ^
  and it is proposed that' these companies be excluded from any definitive                                           -
  action *      For other exporters of non-textured yarn it is proposed to maintain
  the existing rate of duty of 15*6% in the absence of any contestation from
  other exporters or any new information being provided * . However , for one
  exporter for which a lesser dumping margin was found the proposed rate of
  duty is limited to 13*7% *                                                                         •>'
  With regard to textured yarn it was established that therewas no dumping
  or minimal dumping by seven companies and it is proposed to eliminate them
  also from any definitive action *                           For the remaining exporters of this
  product for which no information has been received orno co-operation obtained
  a definitive anti-dumping duty of 16**f% is proposed *
                                                                     relating to injury
   The subsequent enquiry also confirmed the facts / provisionally established
                                           r
   during the preliminary examination *                          The latest figures svai l^ble for the
   first six months of 19C0 have shown a further deterioration in the situation
  of the Community producers which is characterised by large incr^rse :" in US
   imports of - textured' : r.e*            icp.   •••x -i- irtd yh.M wh ich Siiow rn ■'icr *- ■        . rr more
     0J No L 231 ,        2 . 9 ., t?30 .-. o *       5
   2 0J No L 279 , 23.10 193% p*-1í,
   3 0J No L .294, 4*11 . 1.980.- p * -:
   /    •-* ;                    -- ' ' -
     0J No' 'L' Â-59 , • T''  Î      >     - . p.
 ---pagebreak--- than 88% over the corresponding period of 1979 with increased market
penetration and a continuance of Low prices ,,
in these circumstances the Commission submits the attached proposal for
a Council Regulation imposing a definitive anti-dumping duty on certain
polyester yarn originating in the USA and providing , for the definitive
collection of the amounts secured by way of provisional duty .
 ---pagebreak---                                            -    •         - PROPOSAL FOR
                                 • COUNCIL REGULATION ( E£C )               No
                     imposing a definitive anti-dumping duty on imports of certain polyester
                     yarn originating in the United States of America
                   • THE    COUNCIL          OF THE EUROPEAN COMMUNITIES,             ' ^         ~ ;
                     Having regard to the Treaty establishing the European Economic Community ,
                     Having regard to Council Regulation ( EEC ) No 3017 /79 of 20 December 1979 on
                                             .·         ■                                                         I-
                     protection against dumped or subsidized imports from countries -not members
                                                          .    .        . 1
                     of the European Economic Community ,                        .                      .   ;
                     Having regard to the proposal submitted by . the Commission after consultations
                     with the Advisory Committee set up under Article 6 of' Regulation ( EEC )
                     N®. 3017 / 79 ,     '            ;
                     whereas at the end of April 1980 the Commission received a complaint lodged --              ;
                     by the International Rayon and Synthetic Fibres Committee ( CIRFS) on behalf
                     Of manufacturers accounting for almost all of ^ he Community production of
                     polyester yarn ; whereas the complaint contained evidence of the existence
                     af dumping in respect of the like product originating in the United States ,
, L 231 / 5
                     pf America arid of material injury resulting therefrom, especial ly in Italy
                     and the United Kingdom ;
                 a (- ■-             ' i          ; ■ y- •          ^ ■
                     Whereas the said information                              provided sufficient evidence to .
                 ~ justify initiating a proceeding; whereas the Commission accordingly
            S ;' ,T announced;' by a notice pubtished in the Official Journal of the European
                 1 Communities^, the initiation of a proceeding -concerning imports of certain
                     polyester yarn originating in the United States- of America, and commenced
                     art investigation" of the matter at Community level ;
                       0J N 0 L 339". , 31i12„19?9 , p. 1
                     2
                       0J No C 129 , 30 .- 5.,19<T               IJ „
 ---pagebreak---                                                    - 2 -
           Whereas, in order to arrive at a preliminary determination of dumping and
           injury, the Commission carried out investigations at the premises of those
           American producers known to be concerned and of the main complainant
           Community producers ;
           Whereas , since the preliminary examination of the matter showed that there
           was dumping , except in the case of one exporter      where    no dumping margin
                                               V
           was established , that there was sufficient evidence of injury , and that
           the interests of the Community called for immediate -intervention , the
                                                         1  .
           Commission by Regulation ( EEC) No 2297 / 80    imposed a pppvisional anti-dumping
L 231 / 5
           duty on certain polyester yarn originating in the United States of America ;       .
                                                                                     2
           Whereas^ subsequently , the Commission by Regulation ( EE {) No 2695 / 80
           excluded Macfield Texturing Inc ., and Unifi Incorporated from the scope of
           the provisional duty ;
           Whereas , moreover, the . Commi ssion by Regulation ( EEC) jib 2843 /80^ subsequently
           excluded imports of sewing thread composed of multiple , or cabled yarn from
           the anti-dumping procedure concerning imports of certain polyester yarn
           originating in the United States of America ;
           Whereas, in the course of the subsequent examination of the matter completed
           after the imposition of the provisional anti-dumping duty , the interested
           parties had the opportunity to make known their views in writing , to be
L 114 / 37
           heard by the Commission aerd orally to develop their views , to inspect non-
           confidential information relevant to the defence of their interests and to
           be informed of the essential facts and considerations on the basis of which
           it was intended to make a final 'determination ; whereas the Community
           producers and some of the American producers and exporters and some importers
           availed themselves of these possibi li ties by making known their views in
           writing ahd oratly ; whereas the Commission also carried out further
           investigations in the United States of America at the offices of Burlington Inc .,
           Greensboro , North Carolina , Carter Moore and Co . Inc ., New York , NY , Collins
           and Aikman Corp. , Graham , North Carolina , E -I Ou Pont de Nemours and Company ,
           Wilmington , Delaware , Meyers Fibers Company , Willow Grove , Pennsylvania ,
           Spectrum Inc ., Kings Mountain , North Carolina , Titan Textile Inc ., Patterson ,
           New Jersey and Uni-Tex International , New York , NY ;
             0J No L 231 ,   2 . 9.1980 , p.        5
           2 0J NO !_ 279 , 23,10.1980 , p » 18
             0J No L 29 ^*,  4 « 11 ., 1980 ,- P »
 ---pagebreak--- Whereas , insofar as non-textured yarn is concerned , for the purpose of a
final determinat ion as to whether dumping existed, the Commission compared
the export prices to - the Community during the investigation period which ■
extended from 1 May 1979 to 30 April 1980 , of Burlington Inc „, E I Du Pont -
de Nemours and Company and Meyers 'Fibers Company either with the domestic
prices on the US market or the constructed value, where sales were made at
a loss or where there were no sale's of a like product on the domestic
market ; whereas the constructed value was established by using the cost
of production of the producers in question and including a 3% profit margin
considered to be reasonable ; . whereas account was taken, where appropriate,
of differences affecting price comparability , such as (differences in freigh |
charges and differences in payment terms; whereas, on the above basis, it         ^
was finally established that there was no evidence of dumping by Meyers       - -V;
Fibers Company and that the weighted average dumping margin for the exports -,
of Burlington Inc „ and E. I. Du Pont de Nemours and Company, was 0«2%, which |
in this case' may -be "considered to be minimal ;                                -f~
Whereas the preliminary examination concerning Monsanto Textile Company „
showed a weighted average dumping margin of 15„6# for its exports' to the .
Community ; whereas, in the absence of any representations from Monsanto or
any new information concerning norma I va lue, the dumping margin as finally ;
established for this company remains 15*6%; whereas Uni-Tex International,
which does not sell non-textured yarn on the United States domestic market ,
obtains, the quantities which it exports to the EEC mainly from Monsanto
Textile Company ;- whereas the information used for calculating the dumping
margin for Monsahto is considered to be the best evidence available insofar
as calculations for Uni-Tex 's and all other US exports of non-textured yarn
 -                f             •                  -                           -
to the EEC are . concerned ,- with the exception of Eastman Chemical International
Company, for w^i,ch the weighted average dumping margin of 13*7% resulting
from the preliminary examination and never subsequently contested by the
Company is considered to-be finally established, and also excepting those
companies detai Led in the preceding recital ;
                  '                     ·         V  .
                                                                :    ;   ·
 ---pagebreak---                                 - 4 -
Whereas , as regards textured yarn, the Commission carried out an
investigation subsequent to the imposition of the provisional anti-dumping
duty of those independent texturers known to be concerned and who offered
their co-operation ; whereas7 in this context, it had to be borne in mind that
the complainant alleged that textured yarn'was being sold at a loss on the
US domestic market and that normal value therefore should be based on
constructed value; whereas the investigation showed that the texturers
visited were not selling textured yarn at less than all costs , both fixed
and variable, incurred by them in its production and that therefore the
allegations of the complainant were incorrect ; whereas/ consequently their
sales were considered to have been made in the ordinary course of trade and
the normal values of textured yarn exported by them to the Community were
based on US domestic prices,; whereas these domestic prices were compared
with export prices to the Community , account being taken , where appropriate ,
of differences affecting price comparability , such as differences in quality
and differences in conditions and terms of sale, i„e * differences in freight
charges and in payment terms ;
Whereas the examination finally established that no dumping occurred on
exports by Carter Moore and Co * Inc „, Collins and Aikman Corp „, Meyers
Fibers Company , Spectrum Inc „, and Uni-Tex International whilst there were
weighted average 'dumping margins of 0„5% for Burlington Inc ., and 1*1% for
Titan Textile . Inc *, which margins may be considered to be minimal ;
Whereas^ with rega-rd to American exports of textured yarn other than from
those companies cited above, the Commission had to take into account the
statement of the complainant that such exports were both of products
manufactured by integrated producers, i„e „ those producing non-textured yarn
and subsequently texturing it, who were selling this product in the
United States of America at prices below its cost of production, and also
of products manufactured by independent texturers ; whereas, in the absence
of any co-operation from the exporters concerned, the Commission assumed ,
for the purposes of establishing an             average dumping margin , that •
equal amounts of the exports in question were manufactured by integrated
and independent producers ; ;
 ---pagebreak--- Whereas integrated producers either refused to divulge any elements of their
 cost of production or stated that they did not export directly to the
 Community , or did not make themselves known to the Commission ;
Whereas, in these circumstances , the Commission had to base its final'                    -
determination regarding exports of textured yarn produced by                these    '
manufacturers on ■               the information available , i.e. that contained
 in the complaint ; whereas it consequently concluded that the sales of these
manufacturers on the . domestic market were made-at a loss during the
 investigation period ;                                    -
Whereas , therefore , the Commission 'considered these sales as not having
been made in the ordinary course of trade and .established a constructed
value using available information for non-textured yarn supplied by the
complainant's ;                                                                        .
whereas this information consisted of the costs of materials , manufacture
and overheads and included a 3% profit margin considered reasonable ;
Whereas the constructed value was compared at FOB leyel with the
export prices for - .        shipments to the EEC during the investigation
period as. established during investigations with major exporters of
textured yarn ;                                                 v :
Whereas the dumping margin 'finally established for "all exports of textured
yarn considered to have been produced by integrated companies is 23.1% ;
              . .    ^                   e     s't ev' c' - ;rc:- ; -                    '   '
Whereas , with regard to exports ^considered , to h2ve .: been manufactured by
 independent texrurers who . are either unknown to the Commission or who have
not co-operated fully in'the investigation the ,             •     average dumping
margin of 9.6% resulting from the p relinii nary'r'i rito>es Vigat.-' ot\ and never*
subsequently contested is: cons'idertd 'to be finally ■ #>stsM ished;
 ---pagebreak---                               - 6 -
Whereas , the average dumping margin for textured yarn other than for those
        \
companies named in the preceding recitals , having taken into account the above
mentioned factors , is finally established as 16*4% ;
                                          #
Whereas, with regard to the injury caused to the Community industry the
Commission had to take into consideration the fact that , although the
product found to have been dumped is " classified either as
                                       non-textured or textured yarn ,
                                              employed
following recent changes in the technology / for the production of polyester
filament yarn^a large proportion of the yarn imported into the EEC is
partially oriented yarn ( POY0, which product is at an intermediary stage of
production between non-textured and textured yarn; whereas^ for this reason,
it is appropriate to consider non-textured and textured yarn together when
determining injury ;                                                7
Whereas, with regard to the elements affecting the determination of injury
new information was received which showed that imports into the Community
            partially oriented
of non-texturec^/ and textured yarn originating in the United States of
America together amounted to 18 004 tonnes in the first six months of 1980 ,
representing an increase of 88*1% over the corresponding period in 1979 ;
whereas the American market share increased from 6*4% for the first six
months of 1979 to 15 * 1% for the corresponding period in 1980 ; whereas
 ---pagebreak---     the increased imports of non-textured yarn have been mainly' to the
    United Kingdom and Belgium and Luxembourg where US imports reached a market
    share of 47*6% and 50«4%. respectively during the first half - of . 1980 ;
    whereas, for textured yarn , the greatest increase in American imports has
    been 'in Italy and Belgium and Luxembourgwhere the United States' market
    share increased from 6„7% and 1*1% respectively in . 1979 to 16„8% and
   26*8% respectively in the first half of                            1980 ;
    Whereas , with regard to the other elements affecting the determination of
    injury, the latest information available relating to the first six months
    of 1980 , concerning the production and capacity utilization , the financial                              . .
 . results and the employment situation of Community producers confirmed the
   preliminary determination and no > new information was received nor further
   arguments advanced which could have altered that determination ; •                                .  . .
    Whereas, in considering the " facts' as' f inatly established, the effect of all-
    imports of non-textured and textured yarn from the United States' of America
    on the industry concerned was first examined; whereas , however , ' si nee
    approximately-one third of these imports into the Community were not at                                 .
    dumped prices/it was considered that at least two thi rds pf . the tota I impact
    should be .attributed to the dumped imports and that this - should, be considered
   .to constitute^atepial: injury when; taken in isolation;
    Whereas,, in these ci r-cumstances , protection, of the Community' is interests
    qall's,"f©r:'th0tyef init-ive .col lection of i^th ?;- amounts secured by-way of - .
    provisional dusty , i r> respect pf c er tains po ester yarn originating in the
    United Stat.es^f America; and for tn,e: - imposi tion of a definitive anti-dumping
    duty at the . rate of T6„4%' on texturld yarii and 1 15«6% on non-textured yarn;
; whereas the . definitive ai'ic^dutnping'ducy shall be limited to 13*7% in
! respect \of,' Eai^fBan\rtVei?.T> ii'l irjt 3 rnat;io''fta t.j?. : whereas neither definitive
I cS'tfceiti ff> 'i^OT^ifef i M.t.i. v;e -•'$;£:£        •*.       1 X: 0 'thos v compan -i es wbo se exports
 ^ hav'^ /bp'eO                                                              or tc have                s
 *a minimat dumpi ng ma r 3 "            • : '- '.v".r "      •- ;
  'HAS- ADOPTED THIS REGULA* I0 : f:                 :      :V;
 ---pagebreak---                               Article 1
1*  A definitive anti-dumping duty is hereby imposed on certain polyester
yarn originating in the United States of America and falling within
subheadings ex 51*01 A of the Common Customs Tariff, corresponding to
NIMEXE Codes 51*01-23 , 25 , 26 and 28 *
2*  The rate of the definitive anti-dumping duty shall be as follows :
                          \
    a ) for textured yarn falling within NIMEXE 'code 51*01-23 , 16*4% and
    b ) for non-textured yarh falling within NIMEXE codes 51*01 -25, - 26
        and 28 ,  15*6%    except for non-textured yarn manufactured and exported
        by Eastman Chemical International Company , Kingsport , Tennessee for
        which the    rate   of duty shall be 13*7% *
                                                   w
3*  The duty shall be on the basis of the value declared in accordance with
Commission Regulation ( EEC ) No 1496 / 80 of 11 June 1980 on the declaration
                                                                                  1
of particulars relating to customs value and on documents to be furnished * *
4*  The provisions in force concerning customs duties shall - be valid for the
application of this duty *
                              Article 2
The amounts . secured by way of provisional duty under Regulation ( EEC )
No 2297 / 80 as amended by Regulations ( EEC ) Nos 2695 / 80 and 2843 / 80 shall -
be definitively collected *
 0J N° L 154 , 21 * 6*1980 , p * 16
 ---pagebreak---                                    - 9 -
                                Arti ele 3
        !
Neither the definitive duty instituted by Article 1 nor the definitive
collection provided for in Article 2 shall apply to textured yarn produced '
and exported by Burlington Inc „, Greensboro , North Carolina , Carter Moore
and Co „ Inc „, New York , NY, Collins and Aikman Corp „, Graham , North Carolina
Meyers Fibers Company , Willow Grove ,, Pennsylvania , Spectrum Inc „, Kings
Mountain, North Carolina , Titan Textile Inc „, Patterson , New Jersey ,
Uni-Tex International , New York , NY nor to non-textured yarn produced      and
exported by Burlington Inc «, E , I. Du Pont de Nemours and Company , Wilmington ,
Delaware 0^    Meyers Fibers Company.
                                Article 4
    This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities *
                            I .             '-  '                      • -
This Regulation shall be binding in its entirety and directly applicable
in all Member States * . .
Done at Brussels ,                                For the Council