CELEX: 51996PC0228
Language: en
Date: 1996-06-11
Title: Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 3905/88 as regards definitive anti- dumping duties on imports of polyester yarn originating in Taiwan and Turkey

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           Brussels, 11.06.1996
                                           COM(96) 228 final
                                 Proposal for a
                       COUNCIL REGULATION (EC)
amending Regulation (EEC) No 3905/88 as regards definitive anti-dumping duties
        on imports of polyester yarn originating in Taiwan and Turkey
                        (presented by the Commission)
 ---pagebreak---  ---pagebreak---                        EXPLANATORY MEMORANDUM
In December 1988, by Regulation (EEC) No 3905/88, the Council imposed a definitive
anti-dumping duty on imports of polyester yarn originating in the Republic of Korea.
Mexico, Taiwan and Turkey.
In October 1991, the Council amended, by Regulation (EEC) No 2899/91, the
abovementioned Regulation and repealed the definitive anti-dumping duty imposed on
imports into the Community of polyester yarn originating in Mexico.
In June 1994, following a request for a review, which was lodged by the
International Rayon and Synthetic Fibres Committee (CIRFS), representing the majority
of Community polyester yarn producers, the Commission announced, with a notice
published in the Official Journal of the European Communities, the initiation of a review
of Council Regulation (EEC) No 3905/88 concerning imports of polyester yarn from
Turkey and Taiwan, pursuant to Article 15 of Regulation (EEC) No 2423/88, the
regulation applicable in this review pursuant to Article 23 of Regulation (EC)
No 384/96. Imports from the Republic of Korea were excluded from the review of the
measures, which consequently lapsed..
The investigation covered two products: partially oriented polyester yarn (POY) and
polyester textured filament yarn (PTY).
(a)   The investigation on POY showed that imports from Taiwan had remained at a
      negligible de minimis level, though no measures were applicable for the
      three major Taiwanese producers and exporters Consequently, there is no
      reasonable indication that the expiry of the anti-dumping measures on imports of
      POY originating in Taiwan would lead to a recurrence of injury or threat of injury
      to the Community industry'; the measures in force should therefore be repealed
      However, for Turkey, substantially increased imports of POY at consistently low
      prices during the investigation period, as well as the simultaneous decline in the
      Community industry's performance, leads to the conclusion that the expiry of the
      measures could only worsen the situation of the Community industry through a
      recurrence of injury. Therefore, the measures in force for imports of POY
      originating in Turkey had to be maintained and, in the light of the findings on
      dumping in the current investigation, to be duly adjusted
(b)   As far as imports of PTY originating in Taiwan and Turkey were concerned, it
      was found that although the anti-dumping measures in force have had a somewhat
      positive effect in terms of the volume of the Turkish and Taiwanese imports, they
      did not prevent the pressure on Community prices from continuing Therefore,
      even if imports from other third countries subject to anti-dumping investigations
      may have had some injurious effect on the situation of the Community industry,
      the fact remains that, taken in isolation, the dumped imports from Taiwan and
      Turkey, notwithstanding the existence of protective measures, have continued to
      materially contribute to the precarious situation of the Community industry, and
      that in these circumstances, to allow the measures to expire is likely to further
 ---pagebreak---          weaken the Community industry through a recurrence of injury to this industry.
         Hence, the measures in force for imports of PTY originating in Taiwan and
         Turkey had to be maintained and, in the light of the findings on dumping in the
         current investigation, to be adjusted.
5. It is therefore proposed that the Council adopts the Regulation annexed, amending
   Council Regulation (EEC) No 3905/88 as last amended by Council Regulation (EEC)
   No 2899/91, imposing definitive anti-dumping duties on imports of polyester yarn
   originating in the Republic of Korea, Taiwan and Turkey.
 ---pagebreak---                                          Proposal for a
                               COUNCIL REGULATION (EC)
     amending Regulation (EEC) No 3905/88 as regards definitive anti-dumping duties
                on imports of polyester yarn originating in Taiwan and Turkey
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection
against dumped imports from countries not members of the European Community(1), and in
particular Article 23 thereof,
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on protection
against dumped or subsidized imports from countries not members of the
European Economic Community(2), as last amended by Regulation (EC) No 522/94(3) and in
particular Article 15 thereof,
Having regard to the proposal            submitted by the Commission        after consulting
the Advisory Committee,
Whereas:
A.       PREVIOUS PROCEDURE
(1)      In December 1988, by Regulation (EEC) No 3905/88(4), the Council imposed a
         definitive anti-dumping duty on imports of polyester yarn originating in the
         Republic of Korea, Mexico, Taiwan and Turkey.
(2)      On 1 October 1991, the Council adopted Regulation (EEC) No 2899/91(5), amending
         the abovementioned Regulation and repealing the definitive anti-dumping duty
         imposed on imports into the Community of polyester yarn originating in Mexico.
 B.      REVIEW PROCEDURE
 (3)     Following the publication in June 1993 of a notice(6) of the impending expiry of the
         measures in force, the Commission received a request for a review lodged by the
         International Rayon and Synthetic Fibres Committee (CIRFS) representing the
         producers of allegedly 85% of Community polyester yarn output.
 (i)
         OJNoL      56, 6.3.1996, p. 1.
 (2)
         OJNoL      209, 2.8.1988, p. 1.
 (3)
         OJNoL      66, 10.3.1994, p. 10.
 (4)
         OJ No L    347, 16.12.1988, p. 10.
 (5)
         OJNoL      275, 2.10.1991, p. 21.
 (6)
         OJNoC      175, 26.6.1993, p. 9.
 ---pagebreak---     In December 1993, a notice of intention to carry out a review of the anti-dumping
    measures in force on imports of polyester yarn originating in the Republic of Korea,
     Taiwan and Turkey was published'7'.
(1) On 16 June 1994, in a notice(X), the Commission announced the review of
    Regulation (EEC) No 3905/88, pursuant to Article 15 of Regulation (EEC)
    No 2423/88, being the Regulation applicable in this review pursuant to Article 23 of
    Regulation (EC) No 384/96, and hereinafter referred to as "the Basic Regulation".
    Given the virtual absence of Korean imports on the Community market, it had not
    been shown in the view of the Commission that the expiry of the measures would
    have led to a recurrence of injury. It was therefore decided to exclude from the
    review the measures concerning imports originating in the Republic of Korea, which
    consequently lapsed<9).
(5) The Commission officially advised the producers, exporters and importers known to
    be concerned, the representatives of the exporting countries and the complainant, and
    gave the parties directly concerned the opportunity to make their views known in
    writing and to request a hearing. It also sent questionnaires to all parties known to
    be concerned.
(6) All complainant producers and another producer in the Community replied to the
    questionnaire and made their views known in writing.
(7) Some Turkish and Taiwanese exporters replied to the questionnaire and made their
    views known in writing.
    No importer replied to the Commission's questionnaire.
(8) The Commission sought and verified all information it deemed necessary for the
    purposes of a determination and carried out investigations at the premises of the
    following companies:
    (a)    Community producers
    Rhône Poulenc, France
    Iloechst AG, Germany
    Nylstar, Germany
    Unifi, Ireland
    Montefibre Spa, Italy
    Akzo Fibres and Polymers Division, Netherlands
    La Seda de Barcelona S A, Spain
    Nurel S A, Spain
    Exsa, United Kingdom
    O.I No C 340, 17 12.1993, p. 15
    O.I No C 164, 16.6.1994, p 4
    O.I No C 165, 17.6.1994, p. 10.
 ---pagebreak---      (b)     Producers/exporters in the countries of origin
     Taiwan
     Chung Shing Textile Co. Ltd, Taipei
     Far Eastern Textiles Ltd, Taipei
     Hsin Pao Textile Co. Ltd, Taipei
     Lanfa Textile Co., Taipei
     Lea Lea Entreprise Co. Ltd, Taipei
     Nan Ya Plastics Corporation, Taipei
     Shingkong Synthetic Fibres Corp., Taipei
     Tuntex Distinct Corp., Taipei
     Zig Sheng Ind. Co. Ltd, Taipei
     Turkey
     Korteks-Mensucat Sanayi ve Ticaret A.S., Bursa
     Nergis-Tekstil Sanayi ve Ticaret A.S., Bursa
     Sasa-Artificial and Synthetic Fibres Inc., Adana
     Sifas-Sentetik Iplik Fabrikalari A S . , Bursa
(9)  The investigation of dumping covered the period from 1 July 1993 to 30 June 1994
     (the "investigation period").
(10) All parties concerned were informed of the essential facts and considerations on the
     basis of which it was intended to recommend the amendment of existing definitive
     measures. They were also granted a period within which to make representations
     subsequent to these disclosures.
(11) Because of the large number of interested parties, the volume of data gathered and
     analysed, and the complexity of certain issues, in particular the difficulties inherent
      in the fact that, as described in recitals (12) and (13), POY is a semi-finished product
     destined for the PTY production, the investigation has exceeded the normal period of
     one year as provided for in Article 7(9) of the Basic Regulation.
C.    PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT
1.    DESCRIPTION OF THE PRODUCT CONCERNED
(12)  The products which are covered by the complaint and for which the review
      investigation was initiated are partially oriented polyester yarn (POY) falling within
      CN code 5402 42 00 and polyester textured filament yarn (PTY) falling within
      CN codes 5402 33 10 and 5402 33 90. They are identical to the products which were
      the subject of the previous investigation.
      POY is a feeder yarn used mainly to produce PTY, which is in turn used in both the
      weaving and knitting sectors to make polyester or polyester-and-cotton fabrics
 ---pagebreak---      There are different types of POY as well as PTY, depending on the denier (weight),
     the number of filaments and the lustre. There are also different qualities, depending
     on the efficiency of the production process.
(13) The original investigation was concluded by measures imposed by Regulation (EEC)
     No 3905/88, on POY and PTY separately. In this respect, the present investigation
     has confirmed that the essential process for obtaining PTY is texturization, consisting
     mainly of twisting and drawing POY, which imparts to PTY its essential
     characteristics. However, the necessity for and costs of further processing indicates
     that POY does not belong to the same category of product as PTY, since the
     added-value required to produce PTY from POY is substantial. In addition, the
     end-use of POY and PTY is different and the two products are not interchangeable.
     Consequently, different markets for each product exist.
     It is worth noting that the manufacturing processes described above can sometimes
     be integrated in one company or group, or can be undertaken by two independent
     companies. Both situations (integrated or independent manufacturing) exist in Taiwan
     and Turkey and in the Community. Part of the Community production of POY is sold
     on the Community market to independent texturizers (see recital (22)).
(14) In view of the above, it has been concluded that POY and PTY do not belong to the
     same category of product and thus have to be regarded as two distinct products.
     These findings have not been contested by any interested party. Consequently, the
     two products have been dealt with separately in the framework of this review.
II.  LIKE PRODUCT
     POY
(15) The investigation showed that POY products sold on the domestic markets of Turkey
     and Taiwan were "like products" relative to those exported from those countries to
     the Community. Similarly, the POY manufactured by the Community industry and
     sold on the Community market and those exported to the Community from the
     countries in question are alike in all respects as regards their physical, chemical and
     technical characteristics and end-uses.
     PTY
(16) The same findings were made with regard to PTY respectively sold on the domestic
     markets of Turkey and Taiwan, produced and sold in the Community, and exported
     to the Community from the countries in question.
(17) Consequently, in each case the products sold on the domestic market of the exporting
     countries, those exported from these countries to the Community and those produced
     and sold in the Community are "like products" within the meaning of Article 2(12)
     of the Basic Regulation.
 ---pagebreak--- D.   PARTIALLY ORIENTED POLYESTER YARN (POY)
I.   THE SCOPE OF THE REVIEW
(18) In Regulation (EEC) No 3905/88, three Taiwanese producers, Far Eastern Textile Ltd,
     Nan Ya Plastics Corporation and Tuntex Distinct Corp., were not subject to the
     anti-dumping duty imposed on imports of POY from Taiwan.
     These Taiwanese exporters claimed that the present review investigation could not
     cover producers expressly exempted from the anti-dumping measures, because no
     dumping was found in their case, and that the absence of existing anti-dumping
     measures*led to the conclusion that there were no grounds for including them in
     its scope.
(19) Since the review request was made under the provisions of Article 15 of the
     Basic Regulation, it has to be examined whether the expiry of the measures in force
     would lead again to injury. On this basis, and given that the three Taiwanese
     producers concerned were exempted from the measures on the grounds that no
     dumping had been found in their case, they should be kept outside the scope of this
     review investigation.
(20) Consequently, this review does not cover imports of POY from Tuntex Distinct Corp.,
     Far Eastern Textile Ltd, or Nan Ya Plastics Corporation.
H.   COMMUNITY INDUSTRY
(21) In defining the Community industry, data obtained from information received in the
     replies to the questionnaires, from EUROSTAT figures and from CIRFS concerning
     output of Community-produced POY were used, since not all the producers active in
     the Community POY market cooperated in the investigation.
(22) The complaining Community producers were found to represent 76% of the total
     Community POY production intended for sale and thus a major proportion of that
     production.
(23) On this basis, the complaining Community producers constitute the Community
     industry within the meaning of Article 4(5) of the Basic Regulation.
in.  THE SITUATION OF THE COMMUNITY INDUSTRY
     (a)    Community consumption
(24) The apparent Community consumption increased from 119 000 tonnes in 1991 to
      122 000 tonnes in 1992, fell back to 119 000 tonnes in 1993, to increase again to
      125 000 tonnes in the investigation period.
 ---pagebreak---      (b)    Production, production capacity and capacity utilization
(25) The Community industry's production for sale increased from 58 000 tonnes in 1991
     to 77 000 tonnes in 1992, fell back to 72 000 tonnes in 1993, to increase again
     to 76 000 tonnes during the investigation period.
(26) Over the last three years, the production capacity has remained the same and the
     capacity utilization rate has been stable at 80%.
     (c)    Sales volume and market share
(27) The quantity of POY sold on the Community market by the Community industry
     dropped from 50 000 tonnes in 1991 to 49 000 tonnes in 1992 to 47 000 tonnes in
      1993 and 46 000 tonnes in the investigation period, despite the increase in apparent
     Community consumption, noted in recital (24).
(28) The Community industry's market share changed as follows: 42% in 1991, 40% in
      1992, 39% in 1993 and 36.5% during the investigation period. Overall, the market
     share has declined by 5.5 percentage points while the apparent consumption increased
     by around 5 percentage points.
     (d)    Price movements
(29) Prices of the Community industry for POY have fluctuated in line with the prices of
     the raw materials PTA (Pure Terephthalic Acid), DMT (Dimethylterephthalate) and
     Glycol. The upward price trend of POY recorded at the end of the investigation
     period (first half of 1994) is the result of the worldwide shortage of raw materials and
     their subsequent price increases. These price increases occurred consequently for all
     operators in the market at the same time, but should not hide the fact that the
     Community industry's prices remained consistently undercut by the exporters' prices
     during the investigation period (see recital (38)).
     (e)    Profitability
(30) The Commission found that, overall and from 1991 onwards, the POY Community
     industry has recorded poor financial results. The situation has deteriorated
     considerably from 1992 with an average loss of 22% on turnover during the
     investigation period. All complaining Community producers have suffered
     heavy losses.
     (f)    Employment and investment
(31) Given the integrated nature of the polyester yarn industry, it has not been possible to
     isolate employment and investment data for POY production only. Data available
     concerning the industry globally indicates that there has been a steady curtailment in
     the labour force of about 15% since 1991, even though industry is not
     labour-intensive.
 ---pagebreak---      Investments by the complaining Community producers have been reduced in some
     cases to a level below that needed to ensure optimal production.
     (g)     Conclusion
(32) In spite of the measures in force, an overall assessment of the main economic
     indicators leads to the conclusion that the Community industry producing POY
     continues to show signs of economic difficulties. Its situation has constantly
     deteriorated since 1991, as is demonstrated in particular by a loss in market share of
     up to 5.5% over four years, notwithstanding an increase in Community consumption
     over the same period, by a reduction of employment and by substantial
     financial losses.
IV.  RECURRENCE OF INJURY
(33) In accordance with Article 15 of the Basic Regulation, the Commission examined
     whether the expiry of the measures in force would lead again to injury or threat of
     injury to the Community industry.
     TAIWAN
(34) Imports of Taiwanese POY regressed from 2 812 tonnes in 1991 (2.4% market share)
     to 1 117 tonnes in 1992 (0.9% market share), to 551 tonnes in 1993 (0.5% market
     share) and to 448 tonnes during the investigation period (0.4% market share). It
     should be noted in this respect that the three major Taiwanese producers were not
     subject to any anti-dumping duty. Apart from the imports from these three producers,
     which are not concerned by the review investigation, the Community market share
     held by the remaining imports from Taiwan amounts to 0.1% only. Information
     available suggests that the Taiwanese producers have re-oriented their exports to other
     third countries which are geographically closer, where a steady growth for POY is
     being registered. Furthermore, these producers have apparently moved to a greater
     extent into the downstream product, PTY.
     Consequently, there is no reasonable indication that the expiry of the anti-dumping
     measures on imports of POY originating in Taiwan would lead to a recurrence of
     injury or threat of injury to the Community industry.
     TURKEY
     (a)     Volume and Community market share of imports from Turkey
(35) It was found that imports of POY from Turkey have increased substantially between
      1991 and the investigation period, from 7 933 tonnes to 22 436 tonnes. This
     corresponds to an increase in market share over the same period from 6.7% to 17.9%.
(36) This development has to be seen in the context of the setting-up of a PTY production
     facility in the Community by the largest Turkish producer and exporter of POY and
     PTY. Nevertheless, a significant part of the exports of POY to the Community by
     this Turkish producer were destined to unrelated customers.
 ---pagebreak--- (37)  It was claimed that Turkish imports of POY merely filled the gap left by the
      decreasing exports of POY yarn from Taiwan. This is factually incorrect since the
      Taiwanese imports have continuously decreased from less than 3 000 tonnes in 1991,
      while Turkish imports increased from around 8 000 tonnes in 1991 to 22 400 tonnes
      during the investigation period.
      (b)    Prices of the imports
(38)  On the basis of price information available, a comparison has been made between the
      weighted average Community industry's selling price and the weighted average price
      of the imports concerned at the same level of trade. The Community industry's price
      was at ex-works and, the prices of the imports were at free-at-Community frontier,
      customs cleared.
      This comparison showed in the case of Turkey an undercutting margin, persisting
      throughout the entire investigation period, higher than that established in the
      original investigation.
      (c)    Impact of other factors on the situation of the Community industry
(39)  Among all imports of POY in the Community from other third countries, only those
      from the USA and Switzerland were of significant volume, all others taken together
      being negligible.
      However, the sales volume and market share in the Community of the US imports
      have steadily decreased between 1991 (6.9% market share) and the investigation
      period (1.9% market share). Imports from Switzerland remained relatively stable
      (around 13% market share) at very high prices, and the main Swiss exporter
      concerned is a subsidiary of a complaining Community producer.
(40)  It was alleged that the Community industry did not make the investments needed
      in order to remain competitive. In this regard, an industrial rationalization process has
      been in operation for some years among several Community producers. This process,
      however, requires financial resources which have been limited due to the existence
      of low-priced dumped imports on the Community market.
(41)  The claim was made that, like other industrial sectors in the Community, the
      producers of POY suffered from the recession and not from the Turkish imports and,
      in particular that, because of the recession, the Community producers were not in a
      position to reflect the increasing costs of raw materials in their prices of POY. Here,
      it has to be noted that the development of the apparent Community consumption
      described in recital (24) above does not reflect any recession in the POY market.
 (42) Finally, it was asserted by the Turkish exporter that a capacity utilization rate of 70%
      allows any "fibres-business" to achieve a breakeven point. This statement has not
      been substantiated by the information gathered in Taiwan and among the Community
      industry's producers. According to this information, capacity utilization for this
      industry should normally reach a rate of 90% in order to achieve breakeven. Indeed,
      the majority of Taiwanese producers report utilization rates above 95%. The
                                             11
 ---pagebreak---      Community industry's utilization rate was, throughout the period under consideration,
     around 80%. In any event, the capacity utilization factor has to be examined in
     conjunction with other injury factors such as prices and volumes at which production
     is sold before any decisive conclusions can be drawn. It is clear that, in cases such
     as this, even a 90% utilization rate could result in a loss-making situation if
     prices of the Community producers were severely depressed by the low-priced
     imports concerned.
     (d)     Conclusion
(43) In these circumstances, it appears that there are no other factors but the imports of
     POY originating in Turkey which may explain the difficult situation of the
     Community industry, notwithstanding the anti-dumping measures in force. It is
     therefore concluded that the expiry of these measures as regards Turkey could
     only worsen the situation of the Community industry through a recurrence of injury
     to this industry.
V.   DUMPING
(44) The continued existence of dumping was verified, to ascertain firstly whether there
     were grounds for the continuation of measures against POY from Turkey and, if so,
     whether any change in the dumping margin required the existing measures to be
     amended accordingly.
     (a)     Normal value
(45) It was first examined whether the volume of sales of the sole Turkish producer which
     had exported to the Community during the investigation period on the domestic
     market had attained at least 5% of the volume of the exports of the like product to
     the Community - a percentage which has consistently been considered to constitute
     sales in sufficient quantities to permit a proper comparison. This producer achieved
     domestic sales representing only 2.6% of the quantity exported to the Community.
     Accordingly, those sales were considered insufficient to establish a representative
     domestic price, and normal value had to be constructed in accordance with
     Article 2(3)(b)(ii) of the Basic Regulation.
(46) For all the types of the product sold for export to the Community by the
     Turkish producer, a constructed normal value was calculated, by adding to the
     manufacturing costs of the exported types, a reasonable amount for selling, general
      and administrative expenses (SG&A) and a profit. Since there were insufficient sales
      of POY by the producer concerned on the domestic market, and since this was the
      only producer/exporter involved in the investigation which sold POY on that market,
     the amount for SG&A and profit was calculated by reference to the sales made by
      this producer in the same business sector, in Turkey, in the polyester yarn sector, in
      accordance with Article 2(3)(b)(ii) of the Basic Regulation.
                                            12
 ---pagebreak---      (b)    Export prices
(47) The Turkish producer shipped POY to independent importers in the Community and
     to one related importer in the Community.
(48) Since the POY imported by the related company was transformed into PTY by the
     same company and sold to the first independent buyer as such, it would have been
     necessary to construct an export price for POY from the resale price of PTY. Given
     the inherent difficulties of such an exercise and taking into consideration the large
     quantities sold by the Turkish exporter to independent importers (more than 60% of
     its exports to the Community) it was considered that the transactions between related
     parties should be disregarded altogether; export prices were determined exclusively
     on the basis of the prices relating to transactions with independent importers.
     (c)    Comparison
(49) Normal value by product type was compared with the export price for the
     corresponding type, on a transaction-by-transaction basis at the ex-works stage and
     at the same level of trade.
(50) For the purpose of a fair comparison, normal value was adjusted in accordance with
     the provisions of Article 2(9) and (10) of the Basic Regulation to take account of
     differences directly affecting price comparability. The adjustments concerned import
     charges and indirect taxes and differences in selling expenses arising from sales made
     under different conditions and terms of sale, namely credit terms and transport costs.
     (d)    Dumping margins
(51) The above comparison revealed the existence of dumping, the margins of dumping
     being equal to the amount by which the normal value, as established, exceeds the
     price for export to the Community.
(52) The weighted average dumping margin for the Turkish producer concerned, expressed
     as a percentage of the free-at-Community-frontier price, customs duty unpaid, is
     as follows:
     Sasa-Artificial and Synthetic Fibres Inc.      3.3%.
(53) In the case of Turkish companies which cooperated in the investigation but were
     found neither to have sold POY on their domestic market nor to have exported it
     during the investigation period, the weighted average dumping margin found for the
     sole company which did export during the investigation period is considered
     appropriate, since it takes into account the cooperation of the companies concerned
     by distinguishing them from those which did not cooperate in the investigation.
     Accordingly, the dumping margin of               3.3% is also applicable to the
     following companies: Korteks-Mensucat             Sanayi ve Ticaret A.S. and
     Nergis-Tekstil Sanayi ve Ticaret A.S.
                                            13
 ---pagebreak--- (54) In the case of those Turkish producers which failed to make themselves known or did
     not reply satisfactorily to the Commission's questionnaire, the dumping margin was
     determined on the basis of the facts available in accordance with Article 7(7)(b) of
     the Basic Regulation. It was considered that the most reasonable facts were those
     established during the investigation and that, in order to avoid giving a premium for
     non-cooperation and to ensure that the anti-dumping measures introduced afforded
     effective protection from unfair trade, the dumping margin attributable to those
     producers should be based on the POY type with the highest dumping margin found
     for the sole cooperating Turkish producer which had exported to the Community
     during the investigation period. On that basis, the POY type chosen represented
     around 10% of all exports to the Community by the Turkish producer concerned, and
     the dumping margin established for Turkish non-cooperating companies amounts
     to 6.8%.
VI.  COMMUNITY INTEREST
(55) A determination as to whether the Community interest calls for intervention needs to
     be based on an assessment of all the various interests taken as a whole, including
     those of the producers, users and consumers in the Community. In such an
     examination, the need to eliminate the trade-distorting effects of injurious dumping
     and to restore effective competition needs to be given special consideration.
(56) It has to be recalled that in the previous investigation, the adoption of measures was
     considered to be in the interest of the Community. It was stated that the measures
     would have a fairly negligible effect on the production costs of the user industry and
     no serious consequences for consumers.
(57) These considerations remain valid in considering the extent to which it would be in
     the Community interest to maintain measures in force. No arguments were submitted
     by the users as concerns the impact of the price of POY in the end product, although
     questionnaires were sent to those users made known to the Commission. In any
     event, given the range of the measures proposed and the figures available with regard
     to the weight of POY in the manufacturing of PTY, the impact of the reviewed
     measure on the prices for the end product appears to be negligible.
(58) On the contrary, to allow the measures to expire would put the Community industry
     at a risk, since it would suffer increasingly from the dumped low prices of the
     Turkish imports, being thus prevented from redressing its precarious financial
     situation. It appears therefore that the interests of the Community industry far
     outweigh the possible, and in any case limited, disadvantages for users and
     final consumers.
(59) On that basis it is concluded that Community interest calls for the maintenance in
     force of the anti-dumping measures, duly amended to eliminate the injurious effects
     of dumped imports originating in Turkey.
                                             14
 ---pagebreak--- VIL  MEASURES
     Taiwan
(60) By virtue of the reasons given in recital (34) with regard to Taiwanese imports, the
     existing anti-dumping measures on those imports should be allowed to lapse.
     Turkey
(61) In order to prevent the recurrence of injury and to provide adequate protection from
     continuing injurious dumping by Turkish imports, it is considered that the
     anti-dumping duty should be established in such a way as to allow the Community
     industry to realize the reasonable profit it has been deprived of through the negative
     impact of the dumped imports.
(62) When calculating an adequate level of duty, the Council had to consider that the
     precarious situation of the Community industry consists mainly in a steady loss of
     market share and substantial financial losses due to depressed prices resulting from
     price undercutting. It is thus necessary that the measures taken allow the Community
     industry to make a reasonable profit in the future.
(63) In this respect, the Council has calculated the price level considered adequate to
     remove injury on the basis of the weighted average cost of production of the
     Community industry, adding a profit of 6% considered reasonable for guaranteeing
     the industry productive investment on a long-term basis. This price level was then
     compared to the average import prices on a free-at-Community frontier basis, duty
     paid. Since the result of this comparison shows an injury margin higher than the
     dumping margin established, the duty should be based on the dumping margin found.
E.   POLYESTER TEXTURED FILAMENT YARN (PTY)
I.   THE SCOPE OF THE REVIEW
(64) In Regulation (EEC) No 3905/88, one Taiwanese producer, Tuntex Distinct Corp, was
     exempted from the anti-dumping duty of 6.2% on imports of PTY originating in
     Taiwan because an insignificant dumping margin (0.31%) was found for
     this company.
(65) For the same reasons as those set out in recital (19), this Taiwanese company,
     Tuntex Distinct Corp., has to be excluded from the scope of .the review as far as PTY
     is concerned.
U.   COMMUNITY INDUSTRY
(66) The production of PTY by companies on behalf of which the complaint was lodged
     was found to represent 50% of the total PTY output in the Community
     during the investigation period (1 July 1993 to 30 June 1994) and hence a major
     proportion of this output. Therefore, the complaining companies constitute the
     "Community industry" within the meaning of Article 4(5) of the Basic Regulation.
     Those complaining companies produced PTY from in-house POY production, with
     the exception of one company which purchased POY on the market.
                                             15
 ---pagebreak--- (67) A producer in the Community was found to be a wholly-owned subsidiary of a
     Turkish exporter of POY, the upstream product. Although not cited in the initial
     complaint, this producer cooperated in the investigation. It was considered whether
     this producer operating in the Community should be excluded from the definition of
     the Community industry within the meaning of Article 4(5) of the Basic Regulation
     In this respect, it should be recalled that the provisions of that Article do not provide
     for the automatic exclusion of Community producers related to the exporters or
     producers located in exporting countries, or producers which are themselves importing
     the allegedly dumped product, but rather impose on the Community institutions the
     obligation to consider on a case-by-case basis whether the exclusion of any producer
     is warranted.
(68) Following the previous practice of the Community institutions, it was considered that
     this Community producer, through its relationship with the producer/exporter
     concerned in Turkey, was shielded from the injurious effects of the dumped imports.
     It was further considered, in accordance with that practice, that to include this
     producer in the definition of the Community industry would distort the assessment of
     those effects. Indeed, the fact that the Community producer concerned produces PTY
     from POY bought at transfer prices from the related Turkish exporter found to have
     been dumping and causing injury to the complainants renders the production cost data
     for the product concerned unreliable. On those grounds, it was considered that the
     producer in the Community concerned had to be excluded from the definition of the
     Community industry.
     For the remainder of Chapter E, the term "Community industry" therefore, refers to
     the complaining Community producers of PTY only.
HI.  THE SITUATION OF THE COMMUNITY INDUSTRY
     (a)    Community consumption
(69) The total apparent Community consumption of PTY had increased from 230 000
     tonnes in 1991 to 237 000 tonnes in 1992 and, after a decline to 221 000 tonnes in
      1993, increased again to 241 000 tonnes in the investigation period. This represents
     an overall increase of consumption of around 5% over the period considered.
     (b)    Production, production capacity, utilization rate
(70) The Community industry's production of PTY dropped steadily from 104 000 tonnes
     in 1991 to 92 000 tonnes in 1993 and recovered to 95 000 tonnes during the
     investigation period. This represents an overall decrease in the Community industry's
     production of 8.6%, while Community consumption increased by 5% over the
     same period.
                                             16
 ---pagebreak--- (71) The PTY production capacity of the Community industry has increased over the last
     three years by about 7%, from 114 000 tonnes in 1991 to 122 000 tonnes during the
     investigation period. This increase in PTY production capacity is specifically the
     result of significant investment in 1992 and 1993 by one company, related to a
     third-country producer. This company reduced drastically its imports of POY from
     the parent company and extended its production of POY and consequently its PTY
     capacity in the Community.
(72) The utilization rate of production capacity of the Community industry as a whole
     decreased from 91% in 1991 to 78% in the investigation period. Given the fact that
     the polyester yarn industry is very capital-intensive (up to 90% utilization rate being
     considered to be normal), the decreasing utilization rate has a significant effect on the
     allocation of fixed costs.
     (c)    Sales volume and market share
(73) The quantity of PTY sold in the Community by the complaining Community
     producers declined from about 87 000 tonnes in 1991 and 1992 to 83 000 tonnes in
      1993, to increase again to 87 000 tonnes during the investigation period, in a context
     of growing demand.
(74) The Community industry's share of the Community market moved as follows: 37.7%
     in 1991, 36.8% in 1992, 37.7% in 1993 and 36% during the investigation period. The
     overall relative stability of sales led, however, to a slight decrease of the market share
     due to the increase in Community consumption.
     (d)    Price evolution
(75) Prices of PTY have fluctuated in line with the prices of the raw materials used for
     producing the upstream product POY, namely PTA, DMT, and glycol. The increasing
     price trend of PTY recorded at the end of the investigation period (first half of 1994)
     as compared with 1993 (second half), is the result of the worldwide shortage of those
     raw materials and their consequent price increases. These price increases thus
     occurred for all operators in the market at the same time.
     (e)     Profitability
(76) It was found that, generally from 1992 onwards, the Community industry has recorded
     deteriorating financial results. The overall profitable situation in 1991 has turned into
     losses and has particularly worsened during the investigation period, reaching average
     losses of around 10% on turn-over. All complaining Community producers suffered
     heavy losses, or decreasing profitability.
     (0     Employment and investment
(77) It should be noted that though the polyester yarn industry is not labour-intensive,
     since 1991 there has been a steady curtailment in employment by the
     Community industry.
     Investments by the Community industry were reduced in most cases to levels not
     allowing optimal production.
                                               17
 ---pagebreak---      (g)     Conclusion
(78) In spite of the measures in force on imports of PTY originating in Turkey and
     Taiwan, an overall assessment of the main economic indicators leads to the
     conclusion that the PTY Community industry continues to show clear signs of
     economic difficulties. Its situation has constantly deteriorated since 1991, as is
     demonstrated in particular by a decline of production capacity utilization and market
     share, notwithstanding a certain increase of consumption of PTY in the Community,
     and also by increasing financial losses.
IV.  RECURRENCE OF INJURY
(79) In accordance with Article 15 of the Basic Regulation, the question was examined
     whether the expiry of the measures in force would lead again to injury or threat of
     injury to the Community industry.
     (a)     Volume and market share of imports from the exporting countries
             concerned
(80) Imports of PTY from Taiwan have remained stable since 1991 at an annual level of
     around 7 000 tonnes. The assessment of these imports in the light of the development
     of Community consumption shows a market share of 3% in 1991, 2.9% in 1992, 3.2%
     in 1993 and 2.9% during the investigation period.
(81) Imports of PTY originating in Turkey decreased from 4 504 tonnes in 1991
     (1.9% market share) to 3 406 tonnes in 1992 (1.4% market share) and to 1 546 tonnes
     in 1993 (0.7%) market share), but increased to 2 348 tonnes during the investigation
     period (0.98% market share). The changes in these imports and market shares
     appears to have been somewhat influenced by the setting-up of a PTY production
     facility in the Community by the largest producer and exporter of PTY in Turkey.
     (b)     Prices of the dumped imports
(82) In order to examine whether price undercutting was in evidence, all the types
     manufactured by the Community industry and those imported into the Community
     from the countries concerned have been divided into three groups according to their
     denier. A weighted average Community-industry selling price for each group was
     then compared with a weighted average price of each exporter concerned for the
     comparable group at the same level of trade. The undercutting margins thus obtained
     per group were then weighted in order to reach one margin per exporting company.
     The Community industry's prices were taken at an ex-works basis and the exporters'
     prices were expressed as free-at-Community frontier, customs cleared.
     As far as Turkey is concerned, this comparison showed an overall weighted average
     undercutting margin for the entire investigation period of 33.7%.
     As regards Taiwan, an overall weighted average undercutting margin of 23.6% for
     the entire investigation period was found, ranging from 0.9% to 34.6% according to
     the exporter.
 ---pagebreak---      (c)     Impact of other factors on the situation of the Community industry
     Other imports
(83) Imports of PTY from other third countries, namely Indonesia, India, Malaysia,
     Thailand, the USA, South Africa and Slovakia were claimed to have influenced the
     situation of the Community industry.
(84) Anti-dumping investigations concerning imports from India, Indonesia, Thailand and
     Malaysia are currently being carried out. With the exception of imports from India,
     which have decreased continuously since 1992 to reach during the investigation period
     a volume considered to be negligible, Community market share of the other three
     countries, taken together, increased significantly from 1.7% in 1991 to 9.6% during
     the investigation period. Prices of these imports into the Community appear to be
     higher than Turkish prices but lower than Taiwanese prices. However, no conclusions
     can be drawn yet as to the prices and the possibility of dumping by these imports,
     since the anti-dumping investigations are in progress.
(85) Imports of PTY from the USA, although still significant (4.1% market share in the
     investigation period) dropped by 16% in volume between 1991 and the investigation
     period. As to imports of PTY from South Africa, they increased in terms of
     Community market share from 1.07% in 1991 to 1.47% during the investigation
     period. Eurostat figures, however, do not provide information on the types of PTY
     imported and, therefore, no conclusions can be drawn with regard to the prices at
     which imports of PTY from the USA and South Africa were made.
(86) As far as Slovakia is concerned, imports of PTY into the Community reached a
     market share in the investigation period of 3.1%. However, it appeared that since
      1993, owing to an investment of a Community producer in Slovakia, a major part of
     imports into the Community originating in that country was made at transfer prices
     between related parties. It may reasonably be assumed that such imports cannot have
     been made by the Community producer in question with a view to adversely affect
     its own profitability. Consequently, it is concluded that the Slovakian imports cannot
     have had a significant impact on the situation of the Community industry.
(87) It can therefore be concluded that imports of PTY from countries other than Taiwan
     and Turkey, for which injurious dumping is being investigated following evidence
     presented by the complainants, namely from Indonesia, Thailand and Malaysia, may
     have exacerbated the already unfavourable situation of the Community industry. For
     the other abovementioned countries, for which no anti-dumping investigation is in
     course, any contribution to the injury suffered by the Community industry cannot be
     substantiated.
     Other Community producers
(88) Since the Community industry represents 50% of the total Community production of
     PTY, it was considered necessary to examine the behaviour of the other Community
     producers of PTY in the Community and their possible impact on the situation of the
     Community industry.
 ---pagebreak---       The estimated production capacity of Community producers not included in the
      Community industry has remained stable over the last four years. The same applies
      to their actual production, which showed a slight increase similar to the Community
      industry's production, in the first half of 1994 only. As to the Community market
      share of those other Community producers, it showed during the investigation period
      a slight decrease similar to that of the Community industry.
(89)  Therefore, it does not appear that those producers' behaviour had injurious effects on
      the precarious situation of the Community industry, other than that resulting from
      normal competition.
      Investment level and recession
(90)  The same arguments as in the case of POY relating to the influence of insufficient
      investment and of the recession on the situation of the Community industry were
      made by the Turkish exporter with regard to PTY. The reasoning set out in
      recitals (40) and (41) for POY also applies to PTY. Investments by the Community
      industry have been limited by the lack of the necessary financial resources, due to the
      low-priced dumped imports of PTY, and the development of apparent Community
      consumption of PTY does not reflect any recession.
      (d)     Conclusion
(91)   Although the anti-dumping measures in force have had a somewhat positive effect,
      in terms of the volume of the Turkish and Taiwanese imports of PTY into the
       Community, they have not prevented the pressure on Community prices from
       continuing. Therefore, even if imports from other third countries subject to
       anti-dumping investigations may have had some injurious effect on the situation of
       the Community industry, the fact remains that, taken in isolation, the dumped imports
       from Taiwan and Turkey, notwithstanding the existence of protective measures,
       have continued to contribute materially to the precarious situation of the
       Community industry.
(92)   In these circumstances, to allow the measures to expire is likely to waken further the
       Community industry through a recurrence of injury to this industry.
 V.    DUMPING
 (93)  The continuance of dumping was verified, to ascertain firstly whether there were
       grounds for the continuation of measures against PTY from Turkey and Taiwan and,
       if so, whether any change in the dumping margins required the existing measures to
       be amended accordingly.
                                             20
 ---pagebreak---      (a)     Normal value
     Turkey
(94) As far as the determination of normal value for the Turkish producers is concerned,
     it was first established, for each producer, whether its total domestic PTY sales had
     been made in sufficient quantities to allow a proper comparison with its total
     PTY exports to the Community.
(95) Only two out of the three Turkish producers which cooperated in the investigation
     exported PTY to the Community during the investigation period. These two producers
     were found to have sold PTY in their domestic market as well during that period.
     For each producer, the total domestic PTY sales volume was higher than 5% of its
     total export sales volume to the Community. Accordingly, those domestic sales were
     considered to have been made in sufficient quantities.
(96) For each of the PTY types sold by the two Turkish producers on the domestic market
     and found to be identical or directly comparable to types sold for export to the
     Community, it was also considered whether domestic sales per type were made in
     sufficient quantities.
(97) Domestic sales of each particular type were found to have been made in sufficient
     quantities, as the volume of each type of PTY sold in Turkey during the investigation-
     period represented 5% or more of the volume of the comparable type sold for export
     to the Community.
(98) It was subsequently examined for both producers whether the domestic sales of each
     type of PTY could be considered to have been effected in the ordinary course of
     trade, by looking at the proportion of profitable sales of the type in question.
(99) Given the high inflation rate in Turkey, the methodology for assessing the ordinary
     course of trade in domestic sales was applied on a monthly basis, as follows:
     -   In cases where the monthly volume of a type of PTY sold at a net sales price
         equal to or above the calculated monthly cost of production, as defined in
         Article 2(3)(b)(ii) of the Basic Regulation, represented more than 80% of the total
         monthly sales volume of that type, the normal value was established as a monthly
         weighted average of all domestic sales transactions of the type concerned made
         in each month of the investigation period, whether profitable or not.
     -   In cases where the monthly volume of a type of PTY sold at a net sales price
         equal to or above the calculated monthly cost of production represented less than
         80% but still a sufficient quantity of the total monthly sales volume of that type,
         the normal value was established as a monthly weighted average of the profitable
         domestic sales transactions only for the type concerned in each month of the
         investigation period.
                                            21
 ---pagebreak---       -    In cases where the monthly volume of a type of PTY sold at a net sales price
           equal to or above the calculated monthly cost of production represented an
           insufficient quantity of the total monthly sales volume of that type, it was
           considered that the type in question was not sold in the ordinary course of trade
           and that the monthly normal value had therefore to be constructed.
(100) As a result of the methodology referred to above for one Turkish producer, the
      monthly normal value for the type of PTY exported to the Community has been based
      on the monthly domestic price of the comparable type, after deducting from the sales
      price all discounts and rebates directly linked to the sales under consideration, in
      accordance with Article 2(3)(a) of the Basic Regulation. For the types exported by
      the other Turkish producer, the monthly normal value was based for the first seven
      months of the investigation period on a monthly constructed normal value, as more
      than 80% of the monthly domestic sales were made at a loss, and for the last five
       months of the investigation period, normal value was based on the monthly domestic
       sales price of the comparable types, since domestic sales in these latter months were
       found to have been made in the ordinary course of trade.
(101)  The constructed normal value was determined by adding to the manufacturing costs
       of the product types concerned, a reasonable amount for selling, general and
       administrative expenses (SG&A) and profit.
(102)  This amount was established for the Turkish producer concerned by reference to the
       expenses incurred and the profit realized by each producer on profitable sales of the
       like product on the domestic market.
       Taiwan
(103)  In assessing whether domestic sales of the product concerned by the Taiwanese
       cooperating producers were made in sufficient quantities to allow a proper comparison
       and in the ordinary course of trade, the Commission applied the same methodology
       followed with regard to the Turkish producers (see recitals (94) to (98)) but for the
       whole investigation period instead of on a monthly basis.
(104)  It was found that, for each of the Taiwanese producers concerned, both the total
       volume of domestic sales of PTY and the domestic sales volume of each type of
       PTY, were higher than 5% of the corresponding volumes of the like product sold for
       export to the Community. As a consequence, total domestic sales and domestic sales
       of each product type were considered to have been made in sufficient quantities to
       allow a proper comparison.
(105) It was also found that out of a total of 32 types of PTY sold for export to the
      Community by the Taiwanese producers concerned, only for 16 types had the
      corresponding like product been sold on the domestic market in the ordinary course
      of trade. Normal value was therefore established for these types on the basis of the
      domestic price of comparable types, after deducting all discounts and rebates
      directly linked to the sales under consideration, in accordance with Article 2(3)(a) of
      the Basic Regulation.
                                              22
 ---pagebreak--- (106) For the remaining 16 types of PTY sold for export to the Community, normal value
       needed to be constructed.
(107) For each of the Taiwanese producers concerned, the constructed normal value was
       determined by adding to the manufacturing costs of the product types in question a
       reasonable amount for SG&A and profit. This amount was established by reference
       to the expenses incurred and the profit realized by each producer on the profitable
       sales of the like products on the domestic market.
       (b)     Export prices
(108) Since all imports of PTY originating in Taiwan and Turkey into the Community were
       made directly by independent importers, export prices were determined on the basis
       of the prices actually paid or payable for the product sold for export to the
       Community, in accordance with Article 2(8) of the Basic Regulation.
( 109) In the case of one of the Taiwanese producers concerned, the Commission was unable
       to use its reply to the questionnaire as the basis for establishing export prices. The
       reply was deemed unreliable because information supplied concerned one sales
       transaction only which could not be satisfactorily verified. It was therefore considered
       that this company did not export the product concerned to the Community during the
       investigation period.
       (c)      Comparison
(110) Weighted average normal value by product type was compared with the export price
       for the corresponding type, on a transaction-by-transaction basis at an ex-works level
       and at the same level of trade.
(111) For the purpose of a fair comparison, normal value was adjusted in accordance with
       the provisions of Article 2(9) and (10) of the Basic Regulation to take account of
       differences directly affecting price comparability. These adjustments concerned selling
       expenses arising from sales made under different conditions and terms of sale.
       Adjustments claimed for the above differences were limited to those for which
       satisfactory evidence was submitted that they had a direct relationship to the sales
       under consideration.
       (d)      Dumping margins
(112) The above comparison revealed the existence of dumping, the margins of dumping
       being equal to the amount by which the normal value, as established, exceeds the
       price for export to the Community.
       The weighted average dumping margins by producer, expressed as a percentage of the
       free-at-Community frontier prices, customs duty unpaid, are as follows.
                                               23
 ---pagebreak---       Turkey
      Korteks-Mensucat Sanayi ve Ticaret A.S.                     7.6%
      Sasa-Artificial and Synthetic Fibres Inc.                   8.7%
      Taiwan
      Chung Shing Textile Co. Ltd                                 5.5%
      Far Eastern Textile                                         6.6%
      Hsin Pao Textile Co. Ltd                                    0%
      Nan Ya Plastics Corporation                                 10.6%
      Lea Lea Entreprise Co. Ltd                                  12.9%
      Lanfa Textile Co.                                           16.1%
(113) For the reasons given in recital (53), for producers which cooperated in the
      investigation but were found not to have exported during the investigation period, the
      weighted average dumping margin found for the cooperating producers which did
      export was considered appropriate.
      In the case of the Turkish producers hereby concerned, the margin amounts to 8.3%
      and should apply to the company "Nergis-Tekstil Sanayi ve Ticaret". In the case of
      the Taiwanese producers hereby concerned, the margin amounts to 7% and is
      applicable to the following companies: Shingkong Synthetic Taiwanese Fibres Corp.
      and Zig Sheng Ind. Co. Ltd.
(114) For those producers in the exporting countries concerned which neither replied
      satisfactorily to the Commission's questionnaire nor otherwise made themselves
      known, the dumping margin was determined on the basis of the facts available in
      accordance with Article 7(7)(b) of the Basic Regulation.
      In this respect, the most reasonable facts available were considered to be those
      established during the investigation. In order to avoid giving a premium for
      non-cooperation and to ensure that the measures introduced afford effective protection
      for the Community industry from unfair trade, it is considered appropriate to establish
      the dumping margin for the non-cooperating producers in each of the countries
      concerned at the level of the highest dumping margin found for the cooperating
      producers in the country in question.
      On this basis, for Turkey, the highest dumping margin found for a cooperating
      producer is 8.7%. However, in view of the low level of cooperation of
      Turkish producers, evidenced by the fact that imports of non-cooperating producers
      represent 40% of total imports from Turkey during the investigation period, this
      dumping margin would constitute a bonus for non-cooperation in this proceeding.
      Accordingly, it is considered appropriate to calculate the dumping margin for
      non-cooperating producers in Turkey by reference to the highest dumping found for
      a type of PTY sold for export to the Community by the cooperating producers in that
      country. This dumping margin is 15.2% and corresponds to a PTY type which
      represented more than 3% of total exports to the Community during the investigation
      period by one of the cooperating Turkish producers. Consequently, the dumping
      margin for non-cooperating producers in Turkey amounts to 15.2%.
                                            24
 ---pagebreak---       With regard to Taiwan, the highest dumping margin found for a cooperating producer
      in that country is 16 1%. This dumping margin is considered appropriate in the light
      of the high level of cooperation shown by Taiwanese producers. Indeed, exports of
      PTY by these producers represent 90% of total Taiwanese exports to the Community
      during the investigation period. Consequently, the dumping margin for non-cooperating
      producers in Taiwan amounts to 16.1%.
VI.   COMMUNITY INTEREST
(115) A determination as to whether the Community interest calls for intervention should
      be based on an appreciation of all the various interests taken as a whole, including
      those of the producers, users and consumers in the Community. In such an
      examination, the need to eliminate the trade distorting effects of injurious dumping
      and to restore effective competition should be given special consideration.
(116) It has to be recalled that in the previous investigation, the adoption of measures was
      considered to be in the interest of the Community. It was stated that the measures
      would have a negligible effect on the production costs of the user industry and no
      serious consequences for consumers.
(117) Those considerations remain valid in considering the extent to which it would be in
      the Community interest to maintain measures in force. No arguments were submitted
      by the users as to the impact of the price of PTY on the end product. Nevertheless,
      given the range of the measures proposed, the impact of the reviewed measures on
      the prices for the end products - mainly fabrics and carpets - has been estimated to
      be moderate.
(118) On the contrary, to allow the measures to expire would put the Community industry
      at a risk since it would suffer increasingly from the dumped low prices of Taiwanese
      and Turkish imports without being able to redress its precarious financial situation.
      It thus appears that the interests of the Community industry by far outweigh the
      possible, and in any case limited, disadvantages for users and final consumers.
(119) It is therefore concluded that Community interest calls for maintenance of the
      anti-dumping measures in force, duly amended to eliminate the injurious effects of
      dumped imports originating in Turkey and Taiwan and that those measures should
      continue to take the form of anti-dumping duties.
VII.  MEASURES
(120) In order to provide adequate protection from continued injurious dumping by Turkish
      and Taiwanese imports and to prevent the recurrence of injury, it is considered that
      anti-dumping duties should be established in such a way as to allow the Community
      industry to realize the reasonable profit of which it has been deprived through the
      negative effects of the dumped imports.
                                              25
 ---pagebreak--- (121) When calculating the adequate amount of duty, consideration was given to the
        precarious situation of the Community industry, which consisted mainly in loss of
        market share and substantial financial losses due to depressed prices resulting from
        price undercutting. It is thus necessary that the measures taken allow the Community
        industry to make a reasonable profit in the future.
(122) In this regard, the price level considered adequate to remove injury was calculated on
        the basis of the weighted average cost of production of the Community industry,
        adding a profit of 6% regarded as reasonable for guaranteeing the industry productive
        investment on a long-term basis. This price level was then compared to the average
        import prices on a free-at-Community-frontier basis, duty paid.
( 123) Since the result of this comparison, for all producers in the countries concerned, shows
        higher injury margins than the respective dumping margins established, the duties
        should be based on the dumping margins found,
HAS ADOPTED THIS REGULATION:
                                              Article
Articles 1 and 2 of Regulation (EEC) No 3905/88 are replaced by the following:
                                             "Article 1
1.      A definitive anti-dumping duty is hereby imposed on imports of partially oriented
        polyester yarn (POY) falling within CN code 5402 42 00 and originating in Turkey.
2.      The rate of the duty applicable to the net, free-at-Community-frontier price, before
        customs clearance, shall be as follows:
          COUNTRY           MANUFACTURER                   RATE OF            ADDITIONAL
                                                           DUTY               TARIC CODE
          Turkey
                            Sasa Artificial and
                            Synthetic Fibres Inc.,         3.3%                8895
                            Adana
                            Korteks-Mensucat Sanayi
                            ve Ticaret A S . , Bursa       3.3%               8895
                            Nergis-Tekstil Sanayi ve       3.3%               8895
                            Ticaret A S . , Bursa
                            Others                         6.8%               8536
                                                 26
 ---pagebreak--- 3  Definitive anti-dumping duties on imports of partially oriented polyester yarn (POY)
   falling within CN code 5402 42 00 and originating in Taiwan shall no longer apply.
4. Unless otherwise specified, the provisions in force concerning customs duties
   shall apply.
                                      Article 2
1. A definitive anti-dumping duty is hereby imposed on imports of polyester textured
   filament yarn (PTY) falling within CN codes 5402 33 10 and 5402 33 90 and
   originating in Turkey and Taiwan.
2. The rate of the duty applicable to the net, free-at-Community-frontier price, before
   customs clearance, shall be as follows:
     COUNTRY         MANUFACTURER                RATE OF           ADDITIONAL
                                                 DUTY              TARIC CODE
    Taiwan
                     Lea Lea Enterprise Co.      12.9%              8893
                     Ltd, Taipei
                     Nan-Ya Plastics             10.6%              8162
                     Corporation,
                     Taipei
                     Shingkong Synthetic           7%               8163
                     Fibres Corp., Taipei
                     Zig Sheng Ind. Co Ltd,        7%               8163
                     Taipei
                     Far Eastern Textile Ltd,      6.6%             8894
                     Taipei
                     Chung Shing Textile Co.       5.5%             8161
                     Ltd, Taipei
                     Others                      16.1%              8164
    Turkey
                     Sasa-Artificial and           8.7%             8166
                     Synthetic Fibres Inc.,
                     Adana
                     Nergis-Tekstil Sanayi ve      8.3%             8167
                     Ticaret. A.S., Bursa
                     Korteks-Mensucat              7.6%             8892
                     Sanayi ve Ticaret. AS.,
                     Bursa
                     Others                      15.2%              8170
                                         27
 ---pagebreak---        with the exception of imports which are manufactured and sold for export to the
       Community by the following Taiwanese companies, which shall not be subject to any
       anti-dumping duty:
         TAIWAN           MANUFACTURER                 RATE OF            ADDITIONAL
                                                       DUTY               TARIC CODE
                          Tuntex Distinct Corp.,       0%                  8160
                          Taipei
                          Hsin Pao Textile Co.         0%                  8160
                          Ltd, Taipei
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 that of 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 Council
                                                                     The President
                                               28
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                            COM(96) 228 final
                                              DOCUMENTS
EN                                                                       02 il
                                    Catalogue number : CB-CO-96-239-EN-C
                                                             ISBN 92-78-04451-2
Office for Official PubHcations of the European Communities
L-2985 Luxembourg