CELEX: 51981PC0528
Language: en
Date: 1981-09-16
Title: Proposal for a COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on p-xylene (paraxylene) originating in Puerto Rico, the United , States of America and the US Virgin Islands (submitted to the Council by the Commission)

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COM (81) 528
Vol. 1981/0158
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                    • i'  *
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                                                                 COM(81)528 final
                                                                 Brussels , 16 September 1981
. ■        Ί' »;
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                                                 Proposal for a
                                            COUNCIL REGULATION ( EEC )
                            imposing a definitive anti-dumping duty on p-xylene
                            ( paraxylene ) originating in Puerto Rico , the United
                         , States of America and the US Virgin Islands
                              ( submitted to the Council by the Commission )
 ---pagebreak---                           EXPLANATORY MEMORANDUM '
      χ.                                                            Λ
  In June 1981 the Commission imposed a provisional anti-dumping duty of
  14.7% og imports of p-xylene ( paraxylene ) originating in Puerto Rico , the
  United States of America and the US Virgin Islands .                       ,
  The facts as finally established .show that, the Arco Chemical Company had a
  weighted average dumping margin of 14.7% in the last three quarters of
                                                                        Products
  1980 . Phillips Petroleum had a dumping margin of 7.6'/., Sun Petroleum/ 6 . 14% ,.
  Amoco Chemicals Corporation 3.6% and Shell Chemical Company 2.37% .      None
 of these companies disputed the Commission 's findings .     Since the imposition
  of the provisional duty , the Tenneco Oil Company , Sun International Inc -
  and Sunoco Overseas Inc offered to co-operate in an investigation of thei
  exports to the Community arid subsequently offered undertakings to the
  Commission which eliminated the dumping found .     For those exporters and
tlealers who did not co-operate with the Commission , it was assumed that their
 dumping margins would not be - lower than the highest margin found for those
  exporters who did co-operate i.e. 14.7% for Arco Chemical Company , and . ;
  that this margin should therefore be used for the non co-operating exporters'.
  With regard to injury Caused to the Community industry it was shown that '
  total imports of p-xylene increased from 129 000 tonnes in 1978 to 157 000
  tonnes in 1980 and that approximately 80% of the imports in the investigation
 period were dumped .   The market share of these imports was approximately '
  16% in 1980 . The EEC industry 's resale prices had fallen in 1980 leading
  to heavy losses by all the producers concerned . - Production had decreased
  from 626 000 tonnes in 1978 to 423 000 tonnes in 1980 .
. It is therefore proposed - to impose a definitive anti-dumping duty of 1 ' . 7%
 on p-xylene originating in - Puerto Rico , the United States of America and
  the US Virgin Islands .   It is , however , proposed to exclude from thei
  application of this duty the firms who offered undertakings ^o the Commission
  It is further proposed that the amounts secured by way of provisional duty
  should be definitively collected .
 ---pagebreak---              3
                                 Proposal for a
                          COUNCIL REGULATION ( EEC)'    ■
  imposing a definitive anti-dumping duty on p-xylene ( paraxylene ) originating
   in Puerto Rico , the United States of America and the US Virgin Islands
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economic Community ,
  Having regard to Council Regulation ( EEC ) N° 3017 / 79 of 20 December 1979
  on protection against dumped or subsidized imports from countries, not members
                                           1
  of the European Economic Community , and m particular Article 12 thereof ,
                            . I              •                ,               *
  Having regard to the proposal submitted by the Commission after consultation
  with the Advisory Committee set up under                   Regulation ( EEC )
  N 0 3017 / 79 ,
  Whereas the Commission , by Regulation ( EEC ) N° 1591 / 81 , imposed a
  provisional anti-dumping duty of 14.7% on imports of p-xylene originating
  in Puerto Rico , the United States of America and the US Virgin Islands ,
  with the exception of p-xylene exported by
. - Amoco Chemicals Corporation , the Arco Chemical Company , Phillips :
     Paraxylene Inc and International Petroleum Sales Inc , Panama , members of
     the Phillips Petroleum Group , which voluntari ly gave undertakings to
     increase the'ir prices to levels which eliminated the dumping margins found ;
  - Shell Chemical Company , for which the rate of duty was 2.37% ;             1
. - Sun Petroleum Products Company for which the rate of duty was 6.14% ;
    0J N° L 339 , 31 . 12.1979 ». p.  1
  20J N° L 158, 16.06.1981 , p. 7
 ---pagebreak---                                  - 2 - -
Whereas , in the course of the subsequent examination of tae matter , completed
after the imposition of this -provisional duty , the interested parties had
the opportunity to make known their views in writing and to be . heard by
the Commission , to inspect non-confidential , information relevant to the
defence of their interests and to be informed of the essential fc.-ts and
considerations on the basis of which it was intended to make . a final
determination ; whereas some of the exporters and importers concerned availed
themselves of these possibilities by making known their views, in writing'
and orally ; whereas the Phillips Petroleum Group , Arco Chemical Company ,   .
Shell Chemical Company ,. Sun Petroleum Products Company and Amoco Chemicals
Corporation did not dispute the findings of the Commission ;
Whereas the Tenneco Oil Company , Houston , Texas , contacted the Commission
to say that they had written in February 1981' in response to the notice
announcing the opening of the anti-dumping proceeding on p xylene and had
offered full co-operation in the subsequent investigation ; whereas this
letter failed to reach the Commission ;, whereas     -
Sunoco Overseas Inc and Sun Internationa I Inc also wrote to the Commission
offering to co-operate in an . examination of the facts concern . ng their-,
exports;' whereas on-the- S ? nvestigations at the premises of Tenneco Oil-
Company , Sunoco Overseas Inc and Sun International Inc showed that , in fact ,
there had been no direct exports of p-xylene by these comp&uies in 1980
and that , consequently , it was not possible to determine on the basis of
past experience that they would -not dump if they began ey vrtino ; whereas
in these ci rcumstances- Tenneco Oil Company , Sunoco Oversea ;- Inc and Sun
International Inc offered price undertakings which reflected the norme.
values established during the investigation period to alio.' ''t.'.em'to be -
excluded from the duty ;                _                '
Whereas the Commission has otherwise received no additional information
ip respect of dumping such as to lead it. to - cvise the we' ./, ed a»er^e
dumping margins it . had provisionally established; w.iereas these ma;<gin :;
have therefore been considered as definitively established ;
 ---pagebreak---                               - 3 -
Whereas , with regard to the injury caused by the dumped " imports to the
Community industry , the evidence available to the Commission showed that
total imports of p-xylene from the sources concerned into the Community
 increased from approximately 129 000 tonnes in 1978 to approximately
157 000 tonnes in 1980 ; whereas it was shown that approximately 80% of .
these imports were made at dumped prices ;
                                    /
Whereas the market share of these dumped imports in the Community was
approximately 16% in 1980 ;
Whereas , since most of the importers concerned were not willing to provide
information to the Commission , the Commission was unable to verify the
resale prices of p-xylene imported at dumped prices ;
Whereas , however , the resale prices of the EEC industry had steadily fallen
in 1980 and there was evidence that customers had cancelled their contracts
with the Community industry to buy dumped material from the areas concerned ,
thus further depressing the EEC producers' prices ; whereas all the Community
industry has suffered heavy losses in 1980 ;
Whereas production of p-xylene in the Community fell from 626 000 tonnes in
1978 to 423 000 tonnes in 1980 and capacity utilization fell from 54.4% in
1978 to 36.7% in 1980 ; whereas BP California , London , had been obliged to
cease production of p-xylene at its plant in Scotland;
                                                        4
Whereas the Commission has considered the injury caused by other factors
which , individually or in combination , may also be affecting the Community'
industry ; whereas it was determined that the level of demand and consumption
in the Community remained rel§tiv.e.ly stable ; whereas imports from . countries
other than those named in . the complaint lodged by the European Council of
Chemical Manufacturers' Federations CCEFIC ) have been fairly constant at
considerably lower volumes than those from Puerto Rico , the United States
of America and the US Virgin Islands ; whereas the Commission has received
no information since the adoption of Regulation ( EEC ) N° 1591 / 81- which might
lead it to revise the conclusions reached in the said Regulation in this
respect ; whereas the Commission has therefore definitively concluded that
the dumped imports have caused material injury to the Community industry
concerned ;                               -                                 •
 ---pagebreak---                                  - 4 -
  Whereas , in these circumstances , protection of the Community 's interests
   calls for the imposition of a definitive anti-dumping duty on p-xylene
  originating in Puerto Rico , the United States of America and the US Virgin
   Islands , which , having regard to 'the extent of the injury caused , should
  be equal to . the weighted average dumping margin' established for the last
  three quarters of 1980 , and for the definitive collection in their
  entirety of the amounts secured by way of prbvisional anti-dumping duty ;
                •   •                      '             -
  Whereas        Tenneco Oil Company , Sunoco Overseas Inc and Sun International' I
  have voluntarily undertaken to respect the normal values established during
   II             -
  the investigation ;, whereas the Commission considers these undertakings
  to be acceptable ; whereas it is consequent ly ' appropriate to exclude the
, imports of the products exported by these companies from the application        .
  of the duty ;                    -                       ^
  Whereas , for the reasons indicated above , exports of p-xylene to the .
  Community by th$ Phillips Petroleum Group , Arco Chemical Company and Amoco .
  Chemicals Corporation should also be excluded from the application' of,
  this definitive anti-dumping duty ,
  HAS ADOPTED THIS REGULATION :                                    ■ .
                               ' Article 1     .
          ,            >                               ,        ( paraxylene )
 •1 .   A definitive anti-dumping duty is hereby imposed on p-xylene/ fal I ing ;
  within Common Customs Tariff subheading ex 29.01 D I and corresponding to
  NIMEXE code 29.01-67 originating in Puerto Rico , the United States of
- America and the US Virgin Islands .
                          N              t   t             '
  2.    This duty shall not ;apply to p-xylene exported by :
                                                                         *
  - Amoco Chemicals Corporation                    '
  - Arco Chemical Company ,,
                                      *
–-v^:Ul.ips Paraxylenè Ine and International Petroleum Sale ? Ine ,. Panama ,
      members         Phillips Petroleum Group
 ---pagebreak---                                 - 5 -
- Tenneco Oil Company
- Sunoco Overseas Inc end Sun International Inc .
3.  The rate of the duty shall be 14.7% on the basis of the customs value
determined in accordance with Council Regulation ( EEC ) N° 1224 / 80 of
                                                              1
28 May 1980 on the valuation of goods for customs purposes , except for .
exports made by the following companies for which the rate of. duty shall be
- Shell Chemical Company , Houston , Texas :                      2.37%
- Sun Petroleum Products Co , Phi ladelph ia , Pennsylvama :      6.14%
4.  The provisions in force concerning customs duties shall apply for the
application of this duty .
                                Arti c le 2
The amounts secured by way of provisional anti-dumping duty pursuant to
Regulation ( EEC ) N° 1591 / 81 shall be definitively collected .
                                Article 3
This Regulation shall enter into force on the day of its publication in
the Official Journal of the European Communities .
This Regulation 'shal I be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                                 For the Council ,
 0J N° L 134 , 31 . 5.1980 , p. 1