CELEX: 52013PC0112
Language: en
Date: 2013-03-04
Title: Proposal for a COUNCIL REGULATION amending Regulation (EC) No 192/2007 imposing a definitive anti-dumping duty on imports of polyethylene terephthalate originating, inter alia, in Taiwan following a "new exporter" review pursuant to Article 11(4) of Regulation (EC) No 1225/2009

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		52013PC0112
		
			Proposal for a COUNCIL REGULATION amending Regulation (EC) No 192/2007 imposing a definitive anti-dumping duty on imports of polyethylene terephthalate originating, inter alia, in Taiwan following a "new exporter" review pursuant to Article 11(4) of Regulation (EC) No 1225/2009 /* COM/2013/0112 final - 2013/0067 (NLE) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
Grounds for and objectives of the
proposal
This proposal concerns the application of
Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against
dumped imports from countries not members of the European Community (‘the basic
Regulation’), in the 'new exporter' review of Council Regulation (EC) No
192/2007[1]
imposing a definitive anti-dumping duty on imports of polyethylene
terephthalate originating, inter alia, in Taiwan.
General context
This proposal is made in the context of the
implementation of the basic Regulation and is the result of an investigation
which was carried out in line with the substantive and procedural requirements
laid out in the basic Regulation
Existing provisions in the area of the
proposal
By Regulation (EC) No 2604/2000[2] the Council imposed a
definitive anti-dumping duty on imports of certain polyethylene terephthalate
(PET) originating in India, Indonesia, Malaysia, the Republic of Korea, Taiwan
and Thailand (the countries concerned) pursuant to Article 5 of the basic
Regulation.
Following an expiry review pursuant to
Article 11(2) of the basic Regulation, the Council, by Regulation (EC) No
192/2007, decided that the above mentioned measures should be maintained.
By notice, published in the Official
Journal of the European Union on 24 February 2012[3], the Commission initiated an
expiry review pursuant to Article 11(2) of the basic Regulation of the above
measures. This investigation is still on-going.
Consistency with other policies and
objectives of the Union
Not applicable.
2.           CONSULTATION OF
INTERESTED PARTIES AND IMPACT ASSESSMENT
Consultation of interested parties
Interested parties concerned by the proceeding have had the
possibility to defend their interests during the investigation, in line with
the provisions of the basic Regulation.
Collection and use of expertise
There was no need for external expertise.
Impact assessment
This proposal is the result of the implementation of the basic
Regulation.
The basic Regulation does not provide for a general impact
assessment but contains an exhaustive list of conditions that have to be
assessed.
3.           LEGAL
ELEMENTS OF THE PROPOSAL
            Summary of the proposed action
On 17 July 2012 the Commission announced, by a regulation published
in the Official Journal of the European Union, the initiation of a 'new
exporter' review of Council Regulation (EC) No 192/2007 imposing a definitive
anti-dumping duty on imports of polyethylene terephthalate originating, inter
alia, in Taiwan, repealing the duty with regard to imports from one exporter in
this country and making these imports subject to registration.
The review was initiated following a request lodged by Lealea
Enterprise Co., Ltd. ("the applicant"), an exporting producer in
Taiwan ("the country concerned") of certain polyethylene
terephthalate.
The investigation did not find dumping for the transactions of the
applicant made in the review investigation period.
Therefore, it is suggested that the Council adopts the attached
proposal for a Regulation in order to repeal the existing measures for the
applicant, which should be published in the Official Journal of the European
Union by 17 April 2013 at the latest.
Upon entry into force of the proposed regulation, the registration
of imports imposed by Regulation (EU) No 653/2012 should cease without any
retroactive levying of the anti-dumping duties. 
Legal basis
Council Regulation (EC) No 1225/2009 of 30 November 2009 on
protection against dumped imports from countries not members of the European
Community.
Subsidiarity principle
The proposal falls under the exclusive competence of the European
Union. The subsidiarity principle therefore does not apply.
Proportionality principle
The proposal complies with the proportionality principle for the
following reasons:
The form of action is described in the above-mentioned basic
Regulation and leaves no scope for national decision.
Indication of how financial and administrative burden falling upon
the Union, national governments, regional and local authorities, economic
operators and citizens is minimized and proportionate to the objective of the
proposal is not applicable.
Choice of instruments
Proposed instruments: regulation.
Other means would not be adequate for the following reason:
The basic Regulation does not provide for alternative options.
4.           BUDGETARY IMPLICATION 
The proposal has no implication for the
Union budget.
2013/0067 (NLE)
Proposal for a
COUNCIL REGULATION
amending Regulation (EC) No 192/2007
imposing a definitive anti-dumping duty on imports of polyethylene
terephthalate originating, inter alia, in Taiwan following a "new
exporter" review pursuant to Article 11(4) of Regulation (EC) No 1225/2009
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union,
Having regard to Council Regulation (EC) No
1225/2009 of 30 November 2009 on protection against dumped imports from
countries not members of the European Community[4]
(‘the basic Regulation’) and in particular Article 11(4) thereof,
Having regard to the proposal submitted by
the European Commission ('the Commission') after consulting the Advisory
Committee,
Whereas:
A.        MEASURES IN FORCE
(1)       By Regulation (EC) No
2604/2000[5]
the Council imposed a definitive anti-dumping duty on imports of certain
polyethylene terephthalate originating in India, Indonesia, Malaysia, the
Republic of Korea, Taiwan and Thailand pursuant to Article 5 of the basic
Regulation.
(2)       Following an expiry review
pursuant to Article 11(2) of the basic Regulation, the Council, by Regulation
(EC) No 192/2007[6],
decided that the above mentioned measures should be maintained. 
(3)       By notice, published in
the Official Journal of the European Union on 24 February 2012[7], the Commission initiated
another expiry review pursuant to Article 11(2) of the basic Regulation of the
above measures. This investigation is on-going in parallel and will be
concluded in a separate legal act.
B.        CURRENT PROCEDURE
1.         REQUEST FOR A REVIEW
(4)       The Commission has
received a request to initiate a ‘new exporter’ review pursuant to Article
11(4) of the basic Regulation. The request was lodged by Lealea Enterprise Co.,
Ltd ('the applicant'), an exporting producer in Taiwan ('the country
concerned').
(5)       The applicant claimed that
it did not export the product concerned to the Union during the period of
investigation, i.e. the period from 1 October 1998 to 30 September 1999 ('the
original investigation period').
(6)       Furthermore, the applicant
claimed that it was not related to any of the exporting producers of the
product concerned which are subject to the above-mentioned anti- dumping
measures.
(7)       The applicant further
claimed that it had begun exporting the product concerned to the Union after
the end of the original investigation period.
2.         INITIATION OF A NEW EXPORTER
REVIEW
(8)       The Commission examined
the prima facie evidence submitted by the applicant and considered it
sufficient to justify the initiation of a review in accordance with Article
11(4) of the basic Regulation. After consultation of the Advisory Committee and
after the Union industry concerned had been given the opportunity to comment,
the Commission initiated, by Regulation (EU) No 653/2012[8], a review of Regulation (EC) No
192/2007 with regard to the applicant.
(9)       Pursuant to Regulation
(EU) No 653/2012, the anti-dumping duty of certain polyethylene terephthalate
imposed by Regulation (EC) No 192/2007 was repealed with regard to imports of
the product concerned produced and sold for export to the Union by the
applicant. Simultaneously, pursuant to Article 14(5) of the basic Regulation,
customs authorities were directed to take appropriate steps to register such
imports.
3.         PRODUCT CONCERNED
(10)     The
product concerned is polyethylene terephthalate ('PET') having a viscosity
number of 78 ml/g or higher, according to ISO (International Organization for
Standardization) standard 1628-5, originating in Taiwan, currently falling
within CN code 3907 60 20 ('the product concerned').
4.         PARTIES CONCERNED
(11)     The Commission officially
advised the Union industry, the applicant and the representatives of the
exporting country of the initiation of the review. Interested parties were
given the opportunity to make their views known in writing and to be heard.
(12)     The Commission sent an
anti-dumping questionnaire to the applicant and its related companies and
received a reply within the deadline set for that purpose.
(13)     The Commission sought to
verify all the information it deemed necessary for the determination of the new
exporter status and dumping and verification visits were carried out at the
premises of the applicant in Taiwan.
5.         REVIEW INVESTIGATION PERIOD
(14)     The review investigation
period of dumping covered the period from 1 January 2011 to 30 June 2012 (‘the
review investigation period’ or ‘RIP’).
C.        RESULTS OF THE
INVESTIGATION
1.         'NEW EXPORTER' QUALIFICATION
(15)     The investigation confirmed
that the company had not exported the product concerned during the original
period of investigation and that it had started to export it to the Union after
this period.
(16)     While quantities exported
were limited, they were nevertheless found sufficient to establish a reliable
dumping margin. They followed a pattern in terms of shipment size and turnover
per client which was comparable to the behaviour of the applicant on third
country markets.
(17)     As concerns the other
conditions for the recognition of a new exporter status, the company was able
to demonstrate that it did not have any links, direct or indirect, with any of
the Taiwanese exporting producers subject to the anti-dumping measures in force
with regard to the product concerned.
(18)     Accordingly, it is
confirmed that the company should be considered a ‘new exporter’ in accordance
with Article 11(4) of the basic Regulation and thus an individual margin should
be determined for it.
2.         DUMPING
Normal value
(19)     The applicant produces the
product concerned and sells it domestically and on export markets. The
applicant sells directly to all markets.
(20)     In accordance with Article
2(2) of the basic Regulation, domestic sales were considered representative
when the total domestic sales volume was at least 5% of the total export sales
volume to the Union. The Commission established that the applicant exported a
single product type to the Union and that the same product type was sold
domestically by the applicant in overall representative volumes. 
(21)     An examination was also
made by the Commission as to whether the sales of the product concerned sold
domestically in representative quantities could be regarded as having been made
in the ordinary course of trade pursuant to Article 2(4) of the basic
Regulation. This was done by establishing the proportion of profitable domestic
sales to independent customers. As it was found that there were sufficient sales
in the ordinary course of trade, normal value was based on the actual domestic
price. 
Export price
(22)     The product concerned was
exported directly to independent customers in the Union. Therefore, the export
price was established in accordance with Article 2(8) of the basic Regulation,
i.e. on the basis of export prices actually paid or payable.
Comparison
(23)     The normal value and the
export prices were compared on an ex-works basis.
(24)     For the purpose of ensuring
a fair comparison between normal value and export price, due allowance in the
form of adjustments was made for differences affecting price comparability in
accordance with Article 2(10) of the basic Regulation. Adjustments for
insurance, handling, loading and ancillary expenses and credit costs were
granted in all cases where they were found to be reasonable, accurate and
supported by verified evidence.
Dumping margin
(25)     In accordance with Article 2(11)
of the basic Regulation, the dumping margin was established on the basis of a
comparison of a weighted average normal value with a weighted average of prices
of all exports transactions to the Union. As there were a limited number of
exports to the Union, the individual export prices to the Union were also
compared to the weighted average normal value of the months in which each
export occurred. 
(26)     In both cases these
comparisons showed the existence of a de minimis dumping for the
applicant that exported to the Union in the RIP.
D.        AMENDMENT OF MEASURES
BEING REVIEWED
(27)     The
dumping margin with regard to the applicant, established for the RIP, was at de
minimis level. It is therefore proposed that a duty of 0 EUR/tonne which is
based on the de minimis dumping margin be imposed and that Regulation
(EC) No 192/2007 be accordingly amended. 
E.         REGISTRATION
(28)     In the light of the above
findings, the registration of imports imposed by Regulation (EU) No 653/2012
should cease without any retroactive levying of the anti-dumping duties.
F.         DISCLOSURE AND DURATION
OF THE MEASURES
(29)     The
parties concerned were informed of the essential facts and considerations on
the basis of which it was intended to impose an anti-dumping duty of 0
EUR/tonne on imports of the product concerned from the applicant and to amend
Regulation (EC) No 192/2007 accordingly. Their comments were considered and
taken into account, where appropriate. 
(30)     This review does not affect
the date on which the measures imposed by Regulation (EC) No 192/2007 will
expire pursuant to Article 11(2) of the basic Regulation,
HAS ADOPTED THIS REGULATION:
Article 1
1.           In Article 1(2) of
Regulation (EC) No 192/2007,
the following shall be inserted into the table under producers in Taiwan:
 Country || Company || Anti-dumping duty (EUR/tonne) || TARIC additional code 
 Taiwan || Lealea Enterprise Co., Ltd || 0 || A996 
2.           The customs authorities
are hereby directed to cease the registration of imports of the product
concerned originating in Taiwan produced by Lealea Enterprise Co., Ltd.
3.           Unless otherwise
specified, the provisions in force concerning customs duties shall apply.
Article 2
This Regulation shall
enter into force on the day following its publication in the Official
Journal of the European Union.
This
Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 
                                                                       For
the Council
                                                                       The
President
[1]               OL L59, 27.02.2007, p. 59
[2]               OJ L 301, 30.11.2000, p. 21. 
[3]               OJ C55, 24.02.2012, p.4.
[4]               OJ L 343, 22.12.2009, p. 51
[5]               OJ L 301, 30.11.2000, p. 21
[6]               OL L59, 27.02.2007, p. 59
[7]               OJ C55, 24.02.2012, p. 4
[8]               OJ L188, 18.7.2012, p. 8