CELEX: 51998PC0467
Language: en
Date: 1998-07-23
Title: Proposal for a Council Regulation (EC) amending Council Regulation (EC) No 2160/96 imposing a definitive anti- dumping duty on imports of polyester textured filament yarn originating, inter alia, in Indonesia

COMMISSION OF THE EUROPEAN COMMUNITIES
-to    it
                                               Brussels, 23.07.1998
                                               COM(1998) 467 final
                                Proposal for a
                       COUNCIL REGULATION (EC)
       amending Council Regulation (EC) No 2160/96 imposing
    a definitive anti-dumping duty on imports of polyester textured
            filament yarn originating, inter alia, in Indonesia
                       (presented by the Commission)
 ---pagebreak---  ---pagebreak---                               EXPLANATORY MEMORANDUM
The Council, by Regulation (EC) No 2160/961, imposed a definitive anti-dumping duty
on imports of polyester texturedfilamentyarn originating, inter alia, in Indonesia.
Subsequent to an application lodged by an Indonesian exporter, PT Polyfin Canggih, the
Commission opened a 'new exporter' review in accordance with Article 11(4) of Council
Regulation (EC) No 384/962.
The findings of the investigation show there to have been no dumping of exports of PTY
to the Community made by the company subject to the review during the investigation
period. It is therefore proposed that Council Regulation (EC) No 2160/96 be amended so
that the anti-dumping duty imposed by it shall not apply to PTY produced and exported
by PT Polyfin Canggih.
 'OJL289, 12.11.1996, p. 14
 2
   OJL 56, 6.3.1996, p.l
                                               X
 ---pagebreak---                          COUNCIL REGULATION (EC) N°.../98
                                        of ....1998
         amending Council Regulation (EC) No 2160/96 imposing
    a definitive anti-dumping duty on imports of polyester textured
               filament yarn originating, inter alia, in Indonesia
    THE COUNCIL OF THE EUROPEAN UNION,
    Having regard to the Treaty establishing the European Community,
    Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on
    protection against dumped imports from countries not members of the European
    CommunityO), as last amended by Regulation (EC) No 905/98(2), and in particular
    Article 11 (4) thereof,
    Having regard to the proposal submitted by the Commission after consulting the
    Advisory Committee,
    Whereas:
                                    A. PREVIOUS PROCEDURE
(1)  By Regulation (EC) No 2160/96(3), the Council imposed, inter alia, a definitive anti-
     dumping duty of 20,2% on imports of polyester textured filament yarn (hereinafter
     'product concerned' or 'PTY') originating in Indonesia, with the exception of imports
     from four Indonesian exporters specifically mentioned, which are either subject to a
     lesser rate of duty or to no duty at all. The product is currently classifiable within CN
     codes 54 02 33 10 and 54 02 33 90.
                                    B. PRESENT PROCEDURE
(2)  The Commission subsequently received an application for a review of the measures
     currently in force, i.e. a request to initiate a 'new exporter' review of Regulation (EC)
     No 2160/96, pursuant to Article 11 (4) of Regulation (EC) No 384/96 (hereinafter
     referred to as the 'Basic Regulation'), from the Indonesian producer PT Polyfin
     Canggih (hereinafter referred to as 'the company').
      1
        OJL 56, 6.3.1996, p. 1.
      2
        OJL 128, 30.4.1998, p. 18.
      3
        OJ L 289, 12.11.1996, p.14.
 ---pagebreak---       The company claimed that it was not related to any of the exporters or producers in
      Indonesia subject to the anti-dumping measures in force with regard to the product
      concerned. Furthermore, it claimed that it had not exported the product concerned
      during the original period of investigation (1 July 1993 to 30 June 1994) but had
      exported the product concerned to the Community since then.
(3)   The Commission, after having examined the evidence submitted by the Indonesian
      exporter concerned, which was considered sufficient to justify the initiation of a
      review in accordance with the provisions of Article 11 (4) of the Basic Regulation,
      after consultation of the Advisory Committee and after the Community industry
      concerned had been given the opportunity to comment, initiated, by Regulation (EC)
       No 2544/97(4), a review of Regulation (EC) No 2160/96 with regard to PT Polyfin
      Canggih and commenced its investigation.
       By the Regulation initiating the review, the Commission also repealed the anti-
       dumping duty imposed by Regulation (EC) No 2160/96 with regard to imports of the
       product concerned, produced and exported to the Community by PT Polyfin Canggih,
       and directed customs authorities, pursuant to Article 14(5) of the Basic Regulation, to
       take appropriate steps to register such imports.
(4)    The product covered by the present review is the same product as the one under
       consideration in Regulation (EC) No 2160/96.
 (5)   The Commission officially advised the company and the representatives of the
       exporting country. Furthermore, it gave other parties directly concerned the
       opportunity to make their views known in writing and to request a hearing. However,
       no such request was received by the Commission.
       The Commission sent a questionnaire to the company and received a full reply within
        the deadline. The Commission sought and verified all information it deemed
        necessary for the purpose of the investigation, and carried out a verification visit at the
        company's premises.
 (6)    The investigation of dumping covered the period from 1 October 1996 to 30
        September 1997 (hereinafter referred to as the 'investigation period').
  (7)   The same methodology as that used in the original investigation was applied in the
        present investigation.
         4
           OJNoL347, 18.12.1997, p.31.
 ---pagebreak---                              C.   SCOPE OF THE REVIEW
(8)  As no request for a review of the findings on injury was made in this investigation,
     this review is limited to dumping.
                      D.    RESULTS OF THE INVESTIGATION
1.   New exporter qualification
(9)  The investigation confirmed that PT Polyfin Canggih had not exported the product
     concerned during the original period of investigation. PTY production and exports to
     the Community only started in the second half of 1994.
     Furthermore, according to documentary evidence submitted, the company
     satisfactorily demonstrated that it did not have any links, direct or indirect, with any
     of the Indonesian exporters subject to the anti-dumping measures in force with regard
     to the product concerned.
     Accordingly, it is confirmed that PT Polyfin Canggih should be considered as a new
     exporter in accordance with Article 11(4) of the Basic Regulation, and thus its
     individual dumping margin should be determined.
2.   Dumping
A.   Normal Value
(10) In accordance with Article 2 (2) of the Basic Regulation it was examined whether the
     volume of the company's sales of PTY on the domestic market constituted overall at
     least 5% of the volume of the exports of the like product to the Community. In this
     respect, a number of transactions reported were found not to be of the like product and
     were therefore excluded from the calculations. It was nonetheless established that the
     volume of domestic sales of the like product was at a level considerably in excess of
     the 5 % threshold mentioned above.
     For each type of PTY exported to the Community, it was then examined whether or
     not there were representative domestic sales of identical or directly comparable types.
     For each type of PTY, the volume sold in Indonesia during the investigation period
     represented 5% or more of the quantity of the comparable type of PTY sold for export
     to the Community. Domestic sales of each type exported were therefore considered to
     have been made in sufficient quantities within the meaning of Article 2(2) of the
     Basic Regulation.
                                                  r
 ---pagebreak---       l'or the purposes of examining whether sales of the like product had been made in the
      ordinary course of trade, information supplied on cost of production was verified.
      A number of material errors in the costs reported by the company were corrected.
      Amounts for exchange rate gains and losses, interest expenditure and interest income
      were also adjusted.
      The Commission subsequently examined whether the domestic sales of each type of
      PTY exported to the Community could be considered to have been made in the
      ordinary course of trade, pursuant to Article 2(4) of the Basic Regulation. For each
      product type, it was determined that the volume of sales below unit cost was less than
      20% of total sales being used to determine normal value.
      All domestic sales were therefore regarded as having been made in the ordinary
      course of trade. In accordance with Article 2(1) of the Basic Regulation, normal value
      was based on the weighted average prices of all domestic sales of the product types
      corresponding to those exported to the Community.
B.    Export price
(11) Export prices were established on the basis of the prices actually paid or payable for
       the product concerned when sold for export to independent customers in the
       Community, in accordance with Article 2 (8) of the Basic Regulation.
C.    Comparison
 (12) In accordance with Article 2(11) of the Basic Regulation, the weighted average
        normal value by product type was compared, on an ex factory basis, to the weighted
        average export price at the same level of trade.
        For the purpose of a fair comparison, due allowance in the form of adjustments was
        made for differences which were claimed and demonstrated to affect prices and price
        comparability. These adjustments were made, in accordance with Article 2(10) of the
        Basic Regulation, in respect of commissions, transport, insurance, handling and
        ancillary costs, credit costs, discounts and rebates.
 D.     Dumping margin
 (13) The comparison showed that no dumping existed for exports of PTY to the
         Community made by PT Polyfin Canggih during the investigation period.
                                                     6
 ---pagebreak---             E.    AMENDMENT OF THE MEASURES BEING REVIEWED
(14) Based on the findings of no dumping made during the investigation, it is considered
       that imports into the Community of PTY, produced and exported by PT Polyfin
       Canggih should not be subject to an anti-dumping duty. Regulation (EC) No 2160/96
       should therefore be amended accordingly.
               F.    DISCLOSURE AND DURATION OF THE MEASURE
(15) PT Polyfin Canggih was informed of the facts and considerations on the basis of
       which it is intended to propose the amendment of Regulation (EC) No 2160/96, and
       was given the opportunity to comment. No comments were received.
( 16) The review carried out does not affect the date on which Regulation (EC) No 2160/96
       will expire pursuant to Article 11(2) of the Basic Regulation,
HAS ADOPTED THIS REGULATION:
                                         Article I
Article 1(2) of Regulation (EC) No 2160/96 is hereby amended by adding the following to
the end of the section on Indonesia :
* , as well as PT Polyfin Canggih (Taric additional code 8885)'.
                                         Article 2
Customs authorities are hereby directed to discontinue registration pursuant to Article 3 of
Regulation (EC) No 2544/97.
                                                     ^
 ---pagebreak---                                         Article 3
This Regulation shall enter into force on the day following 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                 1998
                                                                     For the Council
                                                                     The President
                                                      r
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(98) 467 final
                                              DOCUMENTS
EN                                                            02  10  11 17
                                    Catalogue number : CB-C0-98-478-EN-C
                                                             ISBN 92-78-38452-6
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