CELEX: 51982PC0111
Language: en
Date: 1982-03-03
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) imposing a definitive anti-dumping duty on imports of certain cotton yarn originating in Turkey (presented by the Commission to the Council)

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DE LA COMMISSION
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DOCUMENTS "COM"
COM (82) 111
Vol. 1982/0039
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM(82)111 final
                                          Brussels / 3rd March 1982
                 PROPOSAL FOR A COUNCIL - REGULATION ( EEC )
          imposing a definitive anti-dumping duty on imports of
          certain cotton yam .originating in Turkey
               (presented by the Commission to the Council )
  C0M(82 ) 111 final
                           t
 ---pagebreak---                                                                 M
                    EXPLANATORY MEMORANDUM
                        ι
In December 1981 , the Commission imposed a provisional anti-dumping
                                                                 1
duty on imports of certain cotton yarns originating in Turkey .
Since the imposition of the provisional duty , the Commission has
received information from the Turkish exporters and the Turkish
Government which have led it to reconsider the conclusions concerning
dumping set out in Regulation ( EEC ) N° 3453 / 81 .
The injury being caused to the Community industry consists , in
particular , of an increase in the market share of the Turkish
exporters to the detriment of the Community producers and of price
depression .
It is therefore proposed to impose a definitive anti-dumping duty of
12% on imports of certain cotton yarns originating in Turkey .      It is
further proposed that the amounts secured by way of provisional duty
be now collected , albeit at a rate which does not exceed that of the
definitive duty .         j
 Regulation ( EEC ) N° 3453 / 81 - OJ N° L 347 of 3.12.1981 , p. 19
 ---pagebreak---                 PROPOSAL FOR COUNCIL REGULATION ( EEC ) N°
                of
imposing a definitive anti-dumping duty on imports of certain cotton
yarns originating in Turkey
THE COMMISSION 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
                          1
members of the Community , and in particular Articles 12 and 16(1 ) thereof ,
Having regard to the Supplementary Protocol to the Agreement establishing
an Association between the European Economic Community and Turkey , and in
                                                         2
particular                                 Article 47(2 ) ,
Having regard to the proposal made by the Commission after hearing the
opinions expressed by the Advisory Committee set up under the above-
mentioned Regulation ( EEC ) N° 3017/ 79 ;
Whereas the Commission received a complaint lodged by Eurocoton on behalf
of the great majority of Community manufacturers of cotton yarn ; whereas
the complaint contained sufficient evidence of the existence of dumping
in respect of like products originating in Turkey and of substantial
injury resulting therefrom ;
Whereas the Commission accordingly announced , by a notice published in the
Official Journal of the European Communities^, the initiation of a proceeding
                      i i
concerning imports of certain cotton yarns originating in Turkey and
commenced an investigation of the matter at Community level ;
1 0J N° L 339, 31.12.1979, p. 1
20J N° L 293, 29.12.1972 , p. 4
30J N° C 196, 03.08.1979, p. 2
 ---pagebreak--- Whereas , in order to arrive at a preliminary assessment of the dumping
margin and injury , the Commission carried out inspections at the premises
of three export firms , namely Cukurova Sanayi Isl . AS ( Tarsus ), Taris Pam .
Tar . Sat . Koop . Birligi Iplik Fab . ( Izmir ) and Trakya Iplik Sanayi AS
( Istanbul ); whereas these firms were chosen as being representative by
agreement with the Turkish associations of exporters of the products
concerned and the complainants ;
Whereas , since the preliminary examination of the matter showed that
there was dumping , that there was sufficient evidence of injury , and that
the interests of the Community called for immediate intervention , the
                                               1
Commission by Regulation ( EEC ) N° 3453 / 81    imposed a provisional anti-
dumping duty of 16% on certain cotton yarns originating in Turkey ;
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
heard by the Commission and to develop their views orally , 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 a number
of producers , importers and users availed themselves of these possibilities
by making known their views in writing or orally ;
Whereas the Commission has updated the results of the provisional
determination based on the three firms mentioned above and has carried out
a supplementary investigation in Turkey on exports made in the final quarter
of 1981 ; whereas this extension of the period of investigation was made
at the request of the Turkish exporters ; whereas despite the contestations
received following the imposition of the provisional duty the Commission
maintains its opinion with regard to the representativity of the sample of
the exporters chosen , for it contains the largest Turkish exporters end both
public and private firms , located in the three producing regions of these
                                           «
products ;
  OJ N° L 347 , D3 . 13 . 1981 , p. 19
 ---pagebreak---                                         - 3 -
     Whereas , in order to establish a definitive determination as to whether
     the above imports were dumped the Commission had to take into account the
     fact that sales of similar products by the above-mentioned three firms
     on the Turkish domestic market did not provide a valid comparison , since
     the volume of these sales was so low ;
     Whereas , for that reason , the Commission based its calculations on the
     constructed value , namely the costs of material and manufacturing in the
     ordinary course of trade in Turkey, together with a reasonable margin for
     profit and overheads ; whereas in the light of the financial results of
     the exporters- visited, a reasonable profit margin was fixed at 5% ;
     Whereas , however , an adjustment was made to .the costs submitted to the
     Commission by Trakya Iplik Sanayi ( AS ) in respect of the period 1 January -
     30 September 1981 ; whereas the adjustment consisted in adding to those
     costs the sales and financial expenses of the subsidiary company responsible
     for marketing certain exports , which the exporter had not taken into
     account in his submission ; whereas the exporter has taken into account
     these costs in his submission made in respect of the final quarter of 1981
     and       therefore no adjustment was made for that period ;
                   Whereas, in addition, following an underestimate by
                   Cukurova Sanayi Isl . AS of its overheads, the latter
                   have been reassessed on the basis of information
                   supplied by the company regarding the total amount
                   of its exports and the overheads attributable to those
                   exports ;
                    Whereas, on the other hand, Taris Pam. Tar1. Sat.
                    Koop. Birligi Iplik Fab. did not allow the Commis­
                    sion to check or supplement the information provided
                    regarding its production costs ; whereas, accordingly,
                    the Commission had to determine the normal value
                    in relation to the company's exports on the basis of
                    the best information available, in this case the data
                    obtained from the other Turkish producers investi­
                    gated ;      ;
r[ ,
 ---pagebreak---                                              4
            Whereas the definitive determination of dumping was made in comparing ,
            transaction by transaction on a FOB basis , this constructed value for
            sales made from 1 January to 31 December 1981 with the export prices
            to the Community in the same period ;
            Whereas the above examination of the facts shows that dumping exists in
            respect of the imports considered in the investigation , the dumping margins
            varying by type of yarn ; whereas the weighted average dumping margin
            margin for the same reference period is equal to 15.1% for Cukurova
            Sanayi Isl . AS , 13.1% for Trakya Iplik Sanayi AS and 12.1% for Taris Pam .
            Tar . Sat . Koop ,. Birligi Iplik Fab .;
            Whereas , with regard to the injury caused to the Community industry ,
            the evidence available to the Commission shows that the imports of the
            cotton yarn in question , originating in Turkey , after falling from
            71 000 tonnes in 1978 to approximately 54 000 tonnes in 1980 have risen
            to 82 000 tonnes in -1981 ;
                                   \
            Whereas these imports have obtained a market share in the Community of 9.1% in
1978 and 6.6% in 1980 ;    • whereas their share is estimated at 10.8% in 1981 ;
            Whereas according to the information gathered by the Commission the prices
            of imports into the Community of cotton yarn originating in Turkey
            considerably undercut the prices of like products produced by Community
            manufacturers , this undercutting reaching 25% in some cases ;
            Whereas the consequent impact on the Community industry , whose volume
            of production dropped from 613 000 tonnes in T977 to 557 000 tonnes
            in 1981 , takes the form of a depression of Community prices    in real
            terms for many producers* making it impossible to cover production costs ;
            Whereas in addition the Community industry is characterized by a growing ,
            reduction in the utilization of capacities which at present is less than
            65% in several Member States ;           .
 ---pagebreak---  Whereas most of the Community firms are consequently making considerable
 losses on the cotton yarn covered by the proceeding and this has put
at risk the profitability of the industry as a whole and has already
 led to an appreciable fall in the numbers directly employed in the
manufacture of those products from 100 000 in 1979 to 92 000 in 1980
and to less than 84 000 in 1981 ;
Whereas the Commission has considered whether there is injury caused by
other factors which , individually or in combination , are also adversely
affecting the Community industry ; whereas the Commission has examined ,
in particular in this context , the conditions under which other imports
are made , the level of demand for cotton yarn in the Community and the
competition among Community producers ; whereas thevolumeof other imports
increased slightly between 1979 and 1980 but declined slightly in 1981 ;
whereas , moreover , most of these imports are covered by quantity '
restrictions ; whereas , according to the information received by the
Commission , the level of Community demand for cotton yarn , after increasing
in 1979, has decreased slightly since 1980 ; whereas during the same period
the number of Community producers has declined and the market shares of
third countries other than Turkey has remained relatively stable ;
                        t
Whereas in these circumstances the injurious effects attributable solely
to dumping from Turkey must be considered as material injury ;
Whereas following the imposition of the provisional anti-dumping duty ,
the Commission received numerous representations arguing that these
measures were harmful to the interests of the importers as well as those .
of the processing industry and were therefore not in the Community interest
whereas counter-arguments were also received from the Community producers ;
 ---pagebreak--- whereas the representative associations for the whole industry , which
include members from both the spinning and the weaving industries , have
pronounced in favour of the elimination of dumping practices and the
injury resulting therefrom ; whereas the Commission , after examining all
the arguments put forward by the parties , considers that , taking into
account the . extent of the dumping margin , of the injury resulting
             importance OT the
therefrom and of the / industrial sector concerned , the interests of the
Community require on the one hand , the imposition of a definitive anti-
dumping duty on imports of certain cotton yarns originating in Turkey
and on the other hand the definitive collection , limited to the amount
of the definitive duty , of the amounts secured by way of provisional duty
Whereas in order to determine the amount of this duty , the Commission
has examined the dumping margins , as well as the extent of the injury
caused ; whereas for technical reasons the Commission has concluded that
this duty must correspond to the lowest of dumping margins established ,
that is , 12% ,
HAS ADOPTED THIS REGULATION :
                              Article 1
1.   A definitive anti-dumping duty is hereby imposed on imports of cotton
yarns                              falling within subheading 55.05 B of the
Common Customs Tariff and corresponding to Nimexe codes 55.05-21 to
55.05-98 inclusive , originating in Turkey .
2.   The rate of the anti-dumping duty shall be 12% on the basis of. the
customs value determined in accordance with Council Regulation ( EEC )
                                                                            1
N° 1224 / 80 of 28 May 1980 on the valuation of goods for customs purposes
  0J N° L 134 , 31.0j.1980 , p.  1
 ---pagebreak--- 3.    The provisions in force concerning customs duties shall apply to
this duty .                <
                                Article 2
The amounts secured by way of provisional duty pursuant to Regulation
( EEC ) N° 3453 / 81 shall be definitively collected up to the amount of
the definitive       duty , that is , 75% of the amount of the provisional
duty .   The balance of these sums , that is , 25% of the amount of the
provisional duty , is released .
                                Article 3
This Regulation shall enter into force on the day of 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 Counci I .