CELEX: 51983PC0132
Language: en
Date: 1983-03-14
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2940/81 imposing a definitive antidumping duty on p-xylene (paraxylene) originating in Puerto Rico, the United States of America and the United States Virgin Islands (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 132
Vol. 1983/0039
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                   C0M(83) 132 f i n a l
                                                                  Brussels,     14   March 1983
                                                Proposal f o r a
                                           COUNCIL REGULATION (EEC)
         amending R e g u l a t i o n       (EEC) No 2940/81           imposing a d e f i n i t i v e a n t i ­
         dumping d u t y on p - x y l e n e        (paraxylene) o r i g i n a t i n g in Puerto Rico,
         t h e U n i t e d S t a t e s o f America and t h e U n i t e d S t a t e s V i r g i n I s l a n d s
                   ( s u b m i t t e d t o t h e C o u n c i l by t h e Commission)
COM(83) 132 f i n a l
 ---pagebreak---                                             EXPLANATORY MEMORANDUM
 On 15 O c t o b e r 1981 t h e C o u n c i l , by R e g u l a t i o n                         (EEC) No 2940/81            imposed a
d e fin itiv e        a n t i - d u m p i n g d u t y on i m p o r t s o f p - x y l e n e o r i g i n a t i n g             in Puerto
R i c o , t h e US V i r g i n            I s l a n d s and t h e USA.                  U n d e r t a k i n g s *rcm s i x e x p o r t e r s
were a l s o a c c e p t e d t h u s a l l o w i n g them t o be e x c l u d e d f r o m t h e d u t y .
The Commission has s i n c e r e c e i v e d r e q u e s t s f r o m t h r e e US e x p o r t e r s t o r e v i e w
t h e d u t y as i t           a p p l i e d t o them.
The Commi ssion, a f t e r                     co nsu lta tion ,            r e - o p e n e d t h e p r o c e d u r e and commenced
 its      in v e s tig a tio n .         T h i s i n v e s t i g a t i o n showed t h a t t h e c o - o p e r a t i n g
companies e i t h e r had n o t dumped o r had ceased e x p o r t i n g t o t h e Community.
The one e x c e p t i o n t o t h i s was H e r c u l e s , wh ich had t e c h n i c a l l y dumped because
t h e y had bor ne t h e t r a n s p o r t                   c o s t s on a c o ns ig n me nt made t o a r e l a t e d
company.            The s h i p m en t had o t h e r w i s e been made a t a p r i c e which c o u l d be
considered normal.
However, c e r t a i n e x p o r t e r s                 r e p r e s e n t i n g 41% o f US e x p o r t s t o t h e Community
e i t h e r d id not c o -o p e ra te                 i n t h e i n v e s t i g a t i o n o r d i d n o t make t he m se l v es
known t o t h e Commission and f o r t h e s e companies t h e Commission c o n s i d e r e d
it     woul d be a bonus f o r n o n - c o o p e r a t i o n t o d e t e r m i n e a dumping m a rg i n below
t h e 14.7% d e t e r m i n e d i n t h e f i r s t                   in v e s tig a tio n .
It     was a l s o e s t a b l i s h e d t h a t t h e Community p r o d u c e r s were s t i l l                           in a
d ep r e s s e d c o n d i t i o n and t h a t               renewed m a t e r i a l i n j u r y was L i k e l y i f            the
d u t y o r t h e u n d e r t a k i n g s were n ot m a i n t a i n e d .
It     i s c o n s i d e r e d t o be i n t h e Communit y' s i n t e r e s t t h a t t h e d u t y and
undertakings continue to apply.                                      The two US e x p o r t e r s who r e q u e s t e d t he
r e v i e w have o f f e r e d u n d e r t a k i n g s t o r e s p e c t t h e n or mal v a l u e .                       These are
considered acceptable.
Member S t a t e s have been i n f o r m e d o f t h e s e p r o p o s a l s i n t h e A n t i - D u m p i n g
Committee and seem t o be i n agreement w i t h them.
 ---pagebreak---                                                 Proposal for a
                                            COUNCIL REGULATION (EEC)
amencnng R e g u l a t i o n          (EEC) No 2940/81            imposing a d e f i n i t i v e      anti-dumping
d u t y on p - x y l e n e      (paraxylene)           o rig in a tin g  in Puerto R ic o , the U n ited States
o f America and t h e U n i t e d S t a t e s V i r g i n I s l a n d s
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having r e g a r d t o t h e T r e a t y e s t a b l i s h i n g t h e European Economic Community,
Having r e g a r d t o C o u n c i l R e g u l a t i o n         (EEC) No 3 0 1 7 / 7 9 on p r o t e c t i o n a g a i n s t
dumped o r s u b s i d i z e d i m p o r t s f r o m c o u n t r i e s n o t members o f t h e European
                                  1                                                                        2
Economic Community , as amended by R e g u l a t i o n (EEC) No 1580 /8 2 , and i n
p a rtic u la r A rtic le           12 t h e r e o f ,
Having r e g a r d t o t h e p r o p o s a l s u b m i t t e d by t h e Commission a f t e r c o n s u l t a t i o n s
w i t h i n t h e A d v i s o r y Committee p r o v i d e d f o r und er t h e above R e g u l a t i o n ,
Whereas t h e C o u n c i l , by R e g u l a t i o n           (EEC) No 2940/81 , imposed a d e f i n i t i v e
                                                                                  4
a n t i - d u m p i n g d u t y o f 14, 70%on i m p o r t s o f p - x y l e n e       o r i g i n a t i n g in Puerto
R i c o , t h e U n i t e d S t a t e s o f America and t h e US V i r g i n              I s l a n d s ; whereas t h e
r a t e o f d u t y f o r t h e Sun P e t r o l e u m P r o d u c t s Company was 6,14% and f o r t h e
S h e l l Chemical Company was 2.37%; whereas s i x e x p o r t e r s were e x c l u d e d f ro m
t h e d u t y as t h e y gave v o l u n t a r y u n d e r t a k i n g s t o i n c r e a s e t h e i r p r i c e s t o
l e v e l s which e l i m i n a t e d d um pi n g;
Whereas t h i s         R e g u l a t i o n was s u b s e q u e n t l y amended by R e g u l a t i o n       (EEC)
No 3644/81"* which exempted f r o m t h e d u t y                          a further           company wh ich had
v o l u n t a r i l y u n d e r t a k e n t o r e s p e c t t h e nor mal v a l u e e s t a b l i s h e d d u r i n g t h e
in v e s tig a tio n period;
  0J No L 3 39 , 3 1 . 1 2 . 1 9 7 9 , p .           1.
   0J No L 178, 2 2 . 0 6 . 1 9 8 2 , p .            9.
   0J No L 296, 1 5 . 1 0 . 1 9 8 1 , p .            1.
   iCCT scbheading ex 29.01 D I                      b ; Nimexe Code 2 9 . 0 1 - 6 7
  0J No L 364 , 1 9 . 1 2 . 1 9 8 1 , p .            3.
 ---pagebreak---                                                                       -     2   -
              Whereas t he Commission has s i n c e r e c e i v e d r e q ue s t s from t h r e e U n i t e d S t a t e s ·
              companies t o r evi ew t h e d u t i e s i n s o f a r as t h e y a p p l y t o them;
              Whereas, 6 i n c e t h e s a i d re qu es t s p r o v i d e d s u f f i c i e n t e vi denc e t o j u s t i f y
              a r e v i e w o f t h e p r ocee di ng t he Commission                                            announced by a
              n o t i c e p u b l i s h e d i n t he O f f i c i a l J o u r n a l o f t h e European C o m m u n i t i e s d )
              a review of                 .the d e f i n i t i v e a n t i - d u m p i n g d u t y on i m p o r t s o f p - x y l e n e
              o rig in a tin g          i n P ue r t o Rico ,               t h e U n i t e d S t at e s o f America and the US Virgin Islands
and conmenced an i n v e s t i g a t i o n     o f t he m a t t e r at Community l e v e l ;
              Whereas t h e Commission o f f i c i a l l y                       so a dv i s e d t h e e x p o r t e r s and i m p o r t e r s
               known by i t             t o be concerned as w e l l as t h e r e p r e s e n t a t i v e s o f t h e e x p o r t i n g
               c o u n t r y and t he c o m p l ai n a n t s ;
               Whereas t he Commission has g i v e n t h e p a r t i e s d i r e c t l y                         concerned t h e        .
               o p p o r t u n i t y t o make known t h e i r views i n w r i t i n g and t o be heard;
               Whereas c e r t a i n o f t he e x p o r t e r s known t o be concerned and some i m p o r t e r s
               t o o k t h i s o p p o r t u n i t y t o p r e s e n t w r i t t e n and o r a l o b s e r v a t i o n s ; whereas,
               however, s e v e r a l t r a d e r s and d e a l e r s f a i l e d t o respond t o t h e Commission's
               i n v i t a t i o n t o make known t h e i r v i e ws ;
               Whereas t h e Commission sought and v e r i f i e d a l l                              inform ation i t       deemed t o be
               n ec es sa ry f o r t he purposes o f t h e r e v i e w p r oc ed ur e and c a r r i e d o ut
                i n v e s t i g a t i o n s at t h e premises o f t h e f o l l o w i n g :
               EEC p r o d u c e r s :          IC I, Wilton
                                               T o t a l Chimie, P a r i s
                                                Veba 01, G e l s e n k i r c h e n
                                                S h e l l Chemical, London
                        exporters:             Arco Chemical C o . , P h i l a d e l p h i a , P en n sy lv an i a
                                                Exxon Chemical C o . , D a r i e n , C o n n e c t i c u t
                                                Hereof i n a , W i l m i n g t o n , Nort h C a r o l i n a
                                                Koch Chemical Co. , W i c h i t a , Kansas
                                                P h i l l i p s Petroleum Chemicals, O v e r i j s e on b e h a l f o f I n t e r n a t i o n a l
                                               Pet ro le um Sales I n c . , Panama and P h i l l i p s Par axylene I n c . , Puert o
                                               Rico
                                                Sun R e f i n i n g and M a r k e t i n g Co and Sunoco Overseas Inc- P h i l a d e l p h i a ,
                                               Pennsylvania
                                                Tenneco O i l , Houston, Texas
              ( 1) OJ No C 124, 1 5 . 5 . 1 9 8 2 , p . 3.
 ---pagebreak---                                                        - 3 -
The Amoco Chemicals C o r p o r a t i o n and P ec t en Ch em ic a ls I n c . , a s u b s i d i a r y o f
S h e l l O i l Company, a l s o made i n f o r m a t i o n a v a i l a b l e a t t h e Co m mi s s i on ' s o f f i c e s
in Brussels;
Whereas t h e Commission s e l e c t e d t h e l a s t q u a r t e r o f 1981 and t h e f i r s t                               three
q u a r t e r s o f 1982 as t h e r e l e v a n t i n v e s t i g a t i o n p e r i o d .
Whereas n or mal v a l u e s were e s t a b l i s h e d by t a k i n g t h e w e i g h t e d a v er ag e
q u a r t e r l y p r i c e s o f t h e r e s p e c t i v e d o m e s t i c s a l e s o f t h e companies c o n c e r n e d ;
whereas t h e s e w e i g h t e d a v er ag e p r i c e s f l u c t u a t e d by q u a r t e r and had g e n e r a l l y
d e c l i n e d i n t h e t h i r d q u a r t e r o f 1982 t o             levels s l ig h t l y           below t h o s e e s t a b l i s h e d
d u r in g the p re v io u s i n v e s t i g a t i o n ;
Whereas i n e s t a b l i s h i n g t h e p r o f i t a b i l i t y         o f t h e d o m e s t i c s a l e s , e v i d e n c e was
s u b m i t t e d wh ich s a t i s f i e d        t h e Commission t h a t s a l e s g e n e r a l l y had n o t been
at a loss;
Whereas e x p o r t p r i c e s were d e t e r m i n e d on t h e b a s i s o f t h e p r i c e s a c t u a l l y
p a i d o r p a y a b l e f o r t h e p r o d u c t s e x p o r t e d t o t h e Community d u r i n g t h e p e r i o d
of in v e s tig a tio n ;
Whereas i n comp ari ng n or mal v a l u e w i t h e x p o r t p r i c e s t h e Commission t o o k a c c ou n t
where a p p r o p r i a t e o f d i f f e r e n c e s a f f e c t i n g p r i c e         c o m p a r a b i l i t y such as
diffe re n ces          in t r a n s p o r t,     handling,     l o a d i n g and a n c i l l a r y          c o s t s ; whereas a l l
c o m p ar i s on s were made a t               FOB l e v e l ;
Whereas t h e above e x a m i n a t i o n o f t h e f a c t s showed t h a t t h e s e companies which
had g i v e n u n d e r t a k i n g s a f t e r t h e o r i g i n a l       i n v e s t i g a t i o n had r e s p e c t e d t h e t er ms
o f t h e i r u n d e r t a k i n g s and had n o t e x p o r t e d t o t h e Community a t p r i c e s                       l o we r
t h a n t h e nor mal v a l u e s on t h e i r d o m e s t i c m a r k e t s and t h e r e f o r e had n o t                     resumed
dumpi ng ; whereas t h e S h e l l Chemical Company had n o t e x p o r t e d d u r i n g t h e
i n v e s t i g a t i o n p e r i o d ; whereas t h e t h r e e companies w h ic h had r e q u e s t e d t h e
 review,         i.e .    H e r c o f i n a , t h e Koch     Chemical Company and Sun R e f i n i n g and M a r k e t i n g
 Co.,     which had n ot          exported d uring the o r i g i n a l               i n v e s t i g a t i o n , , had n o t dumped i n
t h e Community i n t h e p e r i o d c o v e r e d by t h e r e v i e w w i t h t h e e x c e p t i o n o f one de
m i n i m i s s h ip me nt made by H e r c o f i n a ;
 ---pagebreak---                                                          - 4 -
Whereas f o r t h o s e e x p o r t e r s who n e i t h e r r e p l i e d t o t h e Commi ssi on' s q u e s t i o n ­
n a i r e n o r made t h e m s e l v e s known o t h e r w i s e i n t h e c our se o f t h e r e v ie w
i n v e s t i g a t i o n , a n d who a r e e s t i m a t e d t o a c cou nt f o r 41% o f t h e e x p o r t s c o nc e r n e d ,
t h e Commission c o n s i d e r e d t h a t                it   woul d c o n s t i t u t e a bonus f o r n o n - c o o p e r a t i o n
t o assume t h a t t h e dumping m a rg i n f o r t h e s e e x p o r t e r s was any l o we r t ha n t h e
dumping m a r g i n o f 14 7% d e t e r m i n e d w i t h               r e g a r d t o them f o l l o w i n g t h e o r i g i n a l
in v e s tig a tio n ;
Whereas as r e g a r d s i n j u r y t h e Commission has r e c e i v e d no new e v i d e n c e t o a l t e r
its     v ie w t h a t t h e c o n t i n u e d a p p l i c a t i o n o f t h e e x i s t i n g d u t y and t h e maint enance
o f p r i c e u n d e r t a k i n g s were r e q u i r e m e n t s f o r t h e e l i m i n a t i o n o f i n j u r y and t he
prevention of i t s                 r e c u r r e n c e ; whereas t h e v o l a t i l e        p r i c e movements i n r e c e n t
q u a r t e r s and t h e c o n t i n u i n g d e p r e s s e d s t a t e o f b o t h US and EEC ma r ke t s suggest
t h a t any r emoval o f t h e e x i s t i n g d e f i n i t i v e               duty or withdraw al of undertakings
might        lead t h e e x p o r t e r s co nc e rn ed t o e x p o r t s u r p l u s               i n v e n t o r y t o t h e EEC
t h e r e b y i n c r e a s i n g t h e t h r e a t o f m a t e r i a l i n j u r y t o t h e Community i n d u s t r y ;
Whereas no i n t e r e s t e d p a r t y                i n t h e Community has a rgued t h a t t h e c o n t i n u a t i o n
o f p r o t e c t i v e measures woul d be a g a i n s t t h e Community i n t e r e s t ; wh er ea s,                              in
v ie w o f t h e p a r t i c u l a r l y          serious d i f f i c u l t i e s    f a c i n g t h e Community i n d u s t r y
t h e Commission has come t o t h e c o n c l u s i o n t h a t                          it   is    i n t h e Community's
in te re s ts that d e f in it iv e                 measures and p r i c e u n d e r t a k i n g s be c o n t i n u e d
p a rtic u la rly           i n v ie w o f t h e f a c t t h a t t h o s e e x p o r t e r s who c o - o p e r a t e d i n t h e
Co mmi s si on ' s i n v e s t i g a t i o n and who s u b s e q u e n t l y o f f e r e d p r i c e u n d e r t a k i n g s
o n l y a c c o u n t f o r 59% o f US e x p o r t s t o t h e Community;
Whereas a c c o r d i n g l y t h e f a c t s as f i n a l l y             e s t a b l i s h e d show t h a t t h e i n t e r e s t s
o f t h e Community c a l l f o r t h e m a in ten an ce o f t h e e x i s t i n g d e f i n i t i v e a n t i ­
dumping d u t y on p - x y l e n e o r i g i n a t i n g            i n P u e r t o R i c o , t h e USA and t h e US V i r g i n
Isla nd s;
Whereas t h e e x p o r t e r s conce rn ed were i n f o r m e d o f t h e main f i n d i n g s o f t h e r e v ie w
and commented on t hem; whereas t h o s e companies which had o f f e r e d u n d e r t a k i n g s
 i n t h e o r i g i n a l p r o c e e d i n g v o l u n t e e r e d t o renew them; whereas t h e K o c h C h e m i c a l v
Company          and H e r e o f i n a a l s o v o l u n t a r i l y u n d e r t o o k t o r e s p e c t a minimum p r i c e
  fo r t h e ir exports;
 ---pagebreak---                                                  - 5 -
Whereas t h e e f f e c t o f t h e s a i d u n d e r t a k i n g s w i l l              be t o m a i n t a i n i m p o r t
p r ic e s at the             Level n e c e s s a r y t o p r e v e n t   in ju ry ;
Whereas t h e C o u n c i l h a s , t h e r e f o r e , d e t e r m i n e d t h a t           imports of p-xylene
e x p o r t e d by Amoco C hemi ca ls C o r p o r a t i o n , A rc o Chemical C o . , Exxon Chemical C o . ,
 H e r c o f i n a , Koch Chemical               Co., P h i l l i p s   Paraxylene I n c . ,           In te rn a tio n a l
 P e t r o l e u m S al es I n c . ,          Sunoco Overseas I n c .           and Tenneco O i l s h o u l d be e x c l u d e d
f ro m t h e a p p l i c a t i o n o f t h e d u t y ;
Whereas t h e Sun R e f i n i n g and M a r k e t i n g Company, s u c c e s s o r t o t h e Sun P e t r o l e u m
P r o d u c t s Company, d e c l i n e d t o o f f e r v o l u n t a r y u n d e r t a k i n g s t o r e s p e c t minimum
p r i c e s on i t s e x p o r t s and t h e r e i s t h e r e f o r e no r eason f o r t h e s e companies t o
be e x c l u d e d f r o m t h e g e n e r a l a p p l i c a t i o n o f t h e d u t y ;
Whereas t h e S h e l l Chemical                      Company i s no l o n g e r p r o d u c i n g p - x y l e n e and
r e f e r e n c e t o t h a t company i n t h e d u t y s h o u l d t h e r e f o r e be d e l e t e d ,
 HAS ADOPTED THIS REGULATION:
                                                    A rtic le     1
 A rtic le        1(2)       and (3) o f R e g u l a t i o n      (EEC) No 2940/81 a r e h e r e b y r e p l a c e d by
 the f o l l o w i n g :
  "2.        The        duty s h a l l not a pp ly t o p -x y le n e exported by:
             Amoco Chemi cal s C o r p o r a t i o n
             Arco Chemical Company
             Exxon Chemical I n t e r n a t i o n a l S up pl y SA
             Hercofina
             Koch Chemical Co.
             P h i l l i p s P a r a x y l e n e I n c . and I n t e r n a t i o n a l P e t r o l e u m S al es I n c . ,     Panama,
             members o f t h e P h i l l i p s P e t r o l e u m Group
             Sunoco Overseas I n c . and Sun I n t e r n a t i o n a l I n c .
             Tenneco O i l Company
     3.      The r a t e o f t h e d u t y s h a l l be 14,70% on t h e b a s i s o f t h e customs v a l u e
             d e t e r m i n e d i n a c c o r da nc e w i t h t h e p r o v i s i o n s   in fo rc e w ith          regard t o
              customs d u t i e s . "
                                                   A rtic le   2
   The R e g u l a t i o n s h a l l e n t e r i n t o f o r c e on t h e day f o l l o w i n g             its    p u b lic a tio n in
   t h e O f f i c i a l J o u r n a l o f t h e European C o mmu n it ie s.
   T h i s R e g u l a t i o n s h a l l be b i n d i n g     in     its  e n t i r e t y and d i r e c t l y     a pplicable
   i n a l l Member S t a t e s .
   Done at Brussels,                                                       For t h e C o u n c i l