CELEX: 51991PC0327
Language: en
Date: 1991-08-21
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 3905/88 AND REPEALING THE DEFINITIVE ANTI-DUMPING DUTY IMPOSED ON IMPORTS INTO THE COMMUNITY OF POLYESTER YARN ORIGINATING IN MEXICO

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             C0M(91) 327 f i n a l
                                                             Brussels, 21 August 1991
                                             Proposal for a
                                        COUNCIL REGULATION (EEC)
                      amending R e g u l a t i o n       (EEC) N * 3 9 0 5 / 8 8 and
                   r e p e a l i n g the d e f i n i t i v e a n t i - d u m p i n g duty
                        i m p o s e d on i m p o r t s    i n t o the Community
                     of p o l y e s t e r y a r n o r i g i n a t i n g   in M e x i c o .
                                     (presented by the Commission)
   s'fll ;.
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 ---pagebreak---                              EXPLANATORY MEMORANDUM
1. Following a request      lodged   in September     1990 by several exporters
   from    Mexico,   the   Commission     announced,     in  November   1990,   the
    initiation of a review of anti-dumping measures concerning              imports
   of polyester yarn originating in Mexico, in accordance with Article
   14   of   Council   Regulation     (EEC)    N'  2423/88,    and   commenced   an
    invest igat ion.
2. The measures under review were anti-dumping duties of 15.8% on non-
   textured    partially   oriented    filament   yarn    (POY) and   anti-dumping
   duties    ranging   from    5.8%  to    26.7% on     textured   polyester   yarn
   filament (PTY), imposed by Council Regulation (EEC) N* 3905/88. This
   regulation also imposed duties on polyester yarn from South Korea,
   Taiwan and Turkey, which are not part of the present case.
3. a)     In calculating dumping, normal value has been established on
         the basis of the price actually paid or payable for the product
         sold on the domestic market.           In the case of two exporters,
         domestic price was consistently and substantially below cost of
         production during the      investigation period.        In these cases,
         normal   value was based on cost of           production plus domestic
         profit from other exporters.         Export prices were based on the
         price   paid   or    payable    for   the   product    exported   to   the
         Community.
   b)    Normal   values   (calculated     on   a monthly    average   bases) and
         export prices (brought to ex-factory           level) were compared for
         the corresponding month on a transaction-by-transaction basis.
         With the exception of one exporter of PTY, whose dumping margin
         (0.53%)    is,  according      to   a   consistent    practice   cf    the
         Commission, considered to be de minimis, no dumping wa~ found
         as regards imports of PTY and POY originating in Mexico.
 ---pagebreak---                                  - 2 -
The   investigation   has   therefore  demonstrated    that   imports    of
polyester  yarn originating    in Mexico are no    longer being    dumped.
The Council notes that this absence of dumping, in the presence of a
significant   volume of   imports, has come about     as a result     of a
durable change    in the behaviour of the exporters, notably        in the
area of pricing policy.
In view of    these changed   circumstances,  it  is proposed    that   the
definitive anti-dumping duty imposed by Regulation (EEC) N' 3905/88
on  imports originating    in Mexico be repealed.     The provisions of
Regulation  (EEC) N*   3905/88 which   relate  to  imports of    the same
product originating in South Korea, Taiwan and Turkey should remain
unchanged.   Furthermore,   it should  be noted   that   this  amendment,
which relates only to imports originating     in Mexico, has no effect
on the date on which     the definitive anti-dumping    duty   imposed on
imports of polyester    yarn originating   in South Korea, Taiwan and
Turkey shall lapse.    This date continues to be based on the date of
entry into force of Regulation (EEC) N" 3905/88.
 ---pagebreak---                                         -4* fei«>
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having    regard    to   the   Treaty    establishing     the   European   Economic
Community,
Having regard to Council Regulation (EEC) N" 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
Art icle 14 thereof,
Having    regard   to   the   proposal    submitted    by   the  Commission   after
consultations within the Advisory Committee as provided for under the
above Régulât ion,
Whereas,
                                    A. PROCEDURE
      In November 1990 the Commission announced by a notice published in
      the    Official     Journal    of    the    European    Commun!ties<2)     the
      initiation of a review of anti-dumping measures concerning imports
      of   polyester    yarn   originating     in  Mexico,    in   accordance   with
      Article    14  of    Regulation    (EEC)   N"   2423/88   and   commenced   an
      investigation.      The measures    in question consisted of definitive
      duties on imports of polyester yarn originating in Mexico imposed
      by Council Regulation (EEC) N' 3905/88*3>.
(1) OJ N- L 209 2/08/1988, p. 1
(2) OJ N" C 289 17/11/1990, p. 7.
(3) OJ N* L 347 16/12/1988, p. 10.
 ---pagebreak---                                     - 3 -
2. The proceeding was initiated as a result of a request              lodged in
   September    1990   by  several    exporters    in   Mexico.   The   request
   alleged    changed    circumstances     since   the    imposition    of   the
   definitive anti-dumping duty.        In particular, it was alleged that
   imports of polyester yarn from Mexico to the Community were now
   being made at non-dumped prices.         The evidence contained      in this
   request was considered sufficient to justify opening a proceeding.
3. The   Commission    officially    advised   the  exporters    known    to  be
   concerned, the representatives of the exporting country and the
   complainant   in the original proceeding, the Comité          International
   de la Rayonne et des Fibres Synthétiques (CIRFS) representing the
   Community industry, and gave the parties concerned the opportunity
   to make their views known in writing and to request a hearing.
4. The exporters and CIRFS made their views known in writing.
5. The   Commission   sought    and  verified   all   information    it  deemed
   necessary   for   the purposes of     this proceeding     and  carried    out
   investigations     at    the    premises   of    the    following    Mexican
   producers/exporters:
       Fibras Quimicas SA, Monterrey, Mexico
       Nylon de Mexico SA, Monterrey, Mexico
       Kimex SA, Mexico City
       Fibras Sinteticas SA, Mexico City
       Celanese Mexicana SA, Mexico City
6. The investigation of dumping covered the period 1 January 1990 to
   30 September 1990 (the investigation period).
 ---pagebreak---                                    - 4 -
                     B. PRODUCTS UNDER CONSIDERATION
                        (i) Definition of products
7. The   products     concerned   are   non-textured    partially    oriented
   filament    yarn   (POY),  falling  within   CN  Code   5402  42  00, and
   textured polyester yarn filament       (PTY), falling within CN Codes
   5402 33 10 and 5402 33 90.
                       (ii) Description of products
8. POY   is used    to produce   PTY  and other    types of   yarn.   PTY of
   varying    quality   is produced,   and   there  are   several   different
   types.
9. Three qualities of PTY are produced
   1st Quality: Mechanically perfect, guaranteed for dyeing
   2nd Quality: Mechanically      perfect,    not  guaranteed    for   dyeing
                  ("whites only")
   3rd Quality: Lower quality yarn
   The proportion of each quality produced depends on the efficiency
   of the production process.      The exporters are producing all three
   qua I it ies of PTY.
 ---pagebreak---                                     - 5 -
10. There  are   different  types of     PTY.  The   relative   thickness    and
    weight of PTY is expressed      in units of 1 dtex, which is equal to
    the  weight    in grams   of   10.000   metres  of   yarn.   (It    is  also
    sometimes   expressed   in denier, of      which   1.1   equals   1   dtex).
    Therefore the yarn becomes finer as the number of dtex becomes
    smaller.     Furthermore, every      type of   yarn   contains   a certain
    number  of    constituent   filaments,    given   a   certain    dtex.   The
    greater the number of filaments, the greater         is the value of the
    yarn.
                                 C. DUMPING
                             (I) Normal value
11. Normal value was calculated separately for each month (in view of
    the high inflation rate in Mexico) and for each different type and
    quality of yarn.    (Recitals 10 and 11).
12. In general, normal value was established on the basis of the price
    actually paid or payable for        the product    sold on   the domestic
    market.
13. In the case of two exporters, domestic price was consistently and
    substantially below cost of production during           the  investigation
    period. In these cases it was considered appropriate to establish
    a constructed normal value in accordance with Article 2(3)(b)(ii)
    of Regulation    (EEC) n" 2423/88 using these companies'           costs of
    production   plus a profit     (6%), equivalent     to that   realised by
    other  Mexican    exporters   on   profitable   sales    in  the   domestic
    market, which was considered to be a reasonable level of profit.
 ---pagebreak---                                      - 6 -
                             (il) Export price
14. Export prices were determined on the basis of the price actually
    paid or payable for the product exported to the Community.
                              (i i i) Comparison
15. The normal   value per type and quality       (calculated on a monthly
    average basis) was compared with export prices of the same type
    and  quality    for  the  corresponding    month  on  a  transaction-by-
    transaction    basis.  Requests    for  allowances were   accepted  with
    regard to differences affecting price comparability and bearing a
    direct relationship to the sales under consideration and for which
    satisfactory evidence was submitted.       All comparisons were made at
    the ex-factory level.
                           (iv) Dumping margins
16. With the exception of one exporter of PTY, whose dumping margin
    (0.53%)    is,   according     to  the   consistent   practice  of   the
    Commission, considered to be de minimis, no dumping was found as
    regards imports of PTY and POY originating in Mexico.
17. The Council confirms the conclusions of the Commission relating to
    dump i ng.
 ---pagebreak---                                       - 7 -
                                 C. CONCLUSION
                    (i) Repeal of ant I-dumping measures
18. The investigation has demonstrated that imports of polyester yarn
    from Mexico are no       longer being dumped.       The Council notes that
    this absence of dumping, in the presence of a significant volume
    of imports, has continued over a substantial period and has been
    repeated    on  export   markets outside      the Community.    The Council
    therefore concludes that there has been a durable change                in the
    behaviour of the Mexican exporters, particularly             in the area of
    pricing    policy.    In  view   of   these   changed   circumstances,     the
    Council    considers     that   the   anti-dumping     measures    concerning
    imports of polyester yarn originating           in Mexico are now neither
    justified nor necessary and should therefore be repealed.
19. The exporters and the complainant requested, and were granted, the
    opportunity to be heard by the Commission.
    At  their    request, the exporters and        the complainant     were   also
    informed of the essential facts and considerations on the basis of
    which it was proposed to recommend the repeal of the ant I-dumping
    measures, concerning       imports of    polyester    yarns originating     in
    Mex i co.
    The    parties    were   granted    a   period    within    which    to   make
    representation      on   any   of   the   above    matters   subsequent     to
    disclosure.     Where   appropriate,    their   comments   were   taken   into
    considérât ion.
 ---pagebreak---                                    - 8-
20. Since the   imports orginating    in South Korea, Taiwan and Turkey
    were of such importance that they have to be considered to have by
    themselves cumulatively caused material injury during the original
    investigation    period,  the  repeal   of  the  anti-dumping    measures
    concerning   imports of polyester yarn originating in Mexico cannot
    have any effect on the continuing validity of the anti-dumping
    measures   imposed on   imports of the same product originating        in
    South Korea, Taiwan and Turkey.
                  (ii) Amendment to Regulation 3905/88
21. Regulation (EEC) N" 3905/88 relating to imports of polyester yarn
    originating    in Mexico, South    Korea, Taiwan    and   Turkey, should
    accordingly be amended     in order to repeal     the   definitive anti-
    dumping duty imposed by that regulation on imports originating in
    Mex ico.
22. The provisions of     Regulation   (EEC) N*   3905/88 which    relate  to
    imports of the same product originating in South Korea, Taiwan and
    Turkey should remain unchanged.
23. This   amendment, which    relates   only  to   imports   originating  in
    Mexico, should have no effect on the expiry of            the definitive
    anti-dumping duty imposed on imports of polyester yarn originating
    in South Korea, Taiwan and Turkey.
    The   prospective   date  on  which    the measures    concerning   these
    countries shall lapse should     continue to be based on the date of
    entry into force of Regulation (EEC) n* 3905/88,
 ---pagebreak---                                  - 9 -
   HAS ADOPTED THIS REGULATION
                               ARTICLE I
Article  1 (1) of Regulation   (EEC) N" 3905/88   is hereby  amended to
exclude the reference to "Mexico".
Article  1 (2) of Regulation   (EEC) N* 3905/88   Is hereby  amended to
exclude the following paragraph:
   - "15.8% for POY originating in Mexico excluding yarn produced and
     sold for export to the Community by Celanese Mexicana SA, Mexico
     City, which shall not be subject to such a duty;"
                               ARTICLE 2
Article  2 (1) of Regulation   (EEC) N' 3905/88   is hereby  amended to
exclude the reference to "Mexico".
Article  2 (2) of Regulation   (EEC) N' 3905/88   is hereby  amended to
exclude the following paragraph:
   - "26.7% for PTY originating in Mexico.   The following duties shall
     be applicable to PTY produced and sold for export to the Community
     by the companies listed below:
     -  Celanese Mexicana SA, Mexico City            15.9%
     -  Fibras Quimicas SA, Monterrey                  5.8%
     -  Kimex SA, Mexico City                        18.7%;"
The remainder of Regulation (EEC) 3905/88 shall remain unchanged.
 ---pagebreak---                                    - 10
                                 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
                                    For the CounciI
 ---pagebreak---                                                                     ISSN 0254-1475
                                                              COM(91) 327 final
                                                      DOCUMENTS
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