Commission Regulation (EC) No 1741/2000 of 3 August 2000 imposing a provisional countervailing duty on imports of polyethylene terephthalate (PET) originating in India, Malaysia, Taiwan and Thailand

• Published date: 05 August 2000
• Official Gazette Publication: Official Journal of the European Communities, L 199, 05 August 2000

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Commission Regulation (EC) No 1741/2000 of 3 August 2000 imposing a provisional countervailing duty on imports of polyethylene terephthalate (PET) originating in India, Malaysia, Taiwan and Thailand

Official Journal L 199 , 05/08/2000 P. 0006 - 0047

Commission Regulation (EC) No 1741/2000

of 3 August 2000

imposing a provisional countervailing duty on imports of polyethylene terephthalate (PET) originating in India, Malaysia, Taiwan and Thailand

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 2026/97 of 6 October 1997 on protection against subsidised imports from countries not members of the European Community(1), and in particular Article 12 thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

(1) In November 1999 the Commission announced by a notice (hereinafter referred to as a "notice of initiation") published in the Official Journal of the Communities(2) the initiation of an anti-subsidy proceeding with regard to imports in to the Community of polyethylene terephthalate (hereinafter referred to as 'PET') originating in India, Indonesia, the Republic of Korea (hereinafter referred to as "Korea") Malaysia, Taiwan and Thailand, and commenced an investigation.

(2) The proceeding was initiated as a result of a complaint by the Association of Plastic Manufacturers in Europe on behalf of Community producers representing a major proportion of Community production of PET. The complaint contained evidence of subsidisation of the said product, and of material injury resulting therefrom, which was considered sufficient to justify the initiation of a proceeding.

(3) The complaint which was lodged also covered imports originating in Saudi Arabia. However, following the pre-initiation consultations with the government of Saudi Arabia, evidence was submitted that the volume of imports of PET from Saudi Arabia accounts for less than 4 % of total imports. In accordance with Article 14(4) of Regulation (EC) No 2026/97 (hereinafter referred to as the "Basic Regulation"), the Commission has excluded imports originating in Saudi Arabia from the scope of the present investigation.

(4) Prior to the initiation of the proceeding and in accordance with Article 10(9) of the Basic Regulation, the Commission notified to the Governments of India, Indonesia, Korea, Malaysia, Taiwan and Thailand that it had received a properly documented complaint alleging that subsidised imports of PET originating in India, Indonesia, Korea, Malaysia, Taiwan and Thailand are causing material injury to the Community industry. These Governments were invited for consultations with the aim of clarifying the situation as regards the contents of the complaint and arriving at a mutually agreed solution. The Government of Korea accepted the offer of consultation which was held with the Commission on 24 October 1999. Due note was taken of the comments made in regard to the allegations contained in the complaint regarding subsidised imports and material injury being suffered by the Community industry.

(5) The Commission officially advised the Community producers, exporting producers, importers and users known to be concerned, the representatives of the exporting country and the complainant of the initiation of the proceeding. The parties concerned had the opportunity to make their views known in writing and to request a hearing.

The Governments of India, Indonesia, Korea, Malaysia Taiwan and Thailand, a number of exporting producers as well as complainant Community producers, Community users and importers made their views known in writing. All parties so requested within the time limits set in the notice of initiation were granted a hearing.

(6) The Commission sent questionnaires to all parties known to be concerned and received replies from the Governments of India, Indonesia, Korea, Malaysia Taiwan and Thailand from nine complaining Community producers, twenty exporting producers in the countries concerned, as well as from their related importers in the Community. The Commission also received replies from three unrelated importers/traders in the Community as well as from nine users, five suppliers and five professional associations.

(7) The Commission sought and verified all the information it deemed necessary for the purpose of a preliminary determination of subsidisation and injury, and carried out, as appropriate, investigations at the premises of the following companies:

(a) Community producers

- Du Pont Polyesters Ltd (UK),

- Eastman Chemicals BV (NL),

- INCA International SpA (I).

- Italpet Preforme SpA (I),

- KOSA GmbH (D),

- Shell Chemicals Ltd (UK),

- Wellman PET Resins Europe (NL),

- Aussapol SpA (I),

- CEP (F);

(b) Government of India

- Ministry of Commerce, New Delhi,

- Ministry of Chemicals and Petrochemicals, New Delhi,

- Ministry of Finance, New Delhi,

- Central Board of Excise and Customs, New Delhi,

(c) Exporting producers in India

- Pearl Engineering Polymers Ltd., New Delhi,

- Futura Polymers Ltd, Chennai,

- Elque Polyesters Ltd, Calcutta,

- Reliance Industries Ltd, Mumbai,

(d) Government of Indonesia

- Ministry of Industry and Trade, Jakarta,

- Ministry of Finance, Jakarta,

- Investment Coordinating Board (BKPM), Jakarta,

- Agency for Export Facility Services (Bapeksta), Jakarta,

- Sucofindo, Jakarta;

(e) Producers/exporters in Indonesia

- PT. Bakrie Kasei Corporation, Jakarta,

- PT. Indorama Synthetics TbK., Jakarta,

- PT. Polypet Karyapersada, Jakarta;

(f) Government of Korea

- Ministry of Commerce, Industry and Energy (MOCIE),

- Ministry of Finance and Economy (MOF),

- Ministry of Foreign Affairs and Trade (MOFAT),

- Korea Asset Management Corporation (KAMCO),

(g) Exporting producers in Korea

- Honam Petrochemical Corporation,

- Samyang Corporation,

- SK Chemicals Co., Ltd,

- SK Global Co., Ltd (related company of SK Chemicals),

- Tongkook Corporation,

- Daehan Synthetic Fiber Co., Ltd;

(h) Government of Malaysia

- Ministry of International Trade and Industry (MITI),

- Malaysian Industrial Development Authority (MIDA),

- Bank Negara Malaysia,

- Malaysian Institute of Accountants,

- Malaysia External Trade Development Corporation,

- Ministry of Taxation (Customs and Excise Department, Inland Revenue Board);

(i) Exporting producers in Malaysia

- Hualon Corporation (M) Sdn. Bhd., Kuala Lumpur,

- MPI Polyester Industries Sdn. Bhd., Shah Alam (Selangor D.E.);

(j) Government of Thailand

- Department of Foreign Trade, Bangkok,

- Board of Investment, Bangkok,

- Customs Department, Bangkok,

- Revenue Department, Bangkok;

(k) Producers/exporters in Thailand

- Thai Shingkong Ltd;

(l) Government of Taiwan

- Ministry of Economic Affairs,

- Ministry of Finance,

- Chiao Tung Bank;

(m) Exporting producers in Taiwan

- Shinkong Synthetic Fibers Corporation, Taipei,

- Tuntex Distinct Corp., Hsichih, Taipei County,

- Far Eastern Textile Ltd, Taipei.

- Nan Ya Plastics Corporation, Taipei

(8) The investigation of subsidisation covered the period 1 October 1998 to 30 September 1999 (hereinafter referred to as the "investigation period" or "IP"). The examination of injury covered the period from 1 January 1996 to 30 September 1999 (hereinafter referred to as the "analysis period").

(9) In November 1999 the Commission initiated an anti-dumping investigation concerning imports of the same product originating in India, Indonesia, Korea, Malaysia, Taiwan and Thailand(3).

B. PRODUCT UNDER CONSIDERATION AND LIKE PRODUCT

1. Product under consideration

(10) The product under consideration is polyethylene terephthalate, normally used in the plastics industry, for the production of bottles and sheet.

(11) Another kind of polyethylene terephthalate, for use in polyester fibre production, is not covered by the present investigation.

(12) The production process of the two qualities of polyethylene terephthalate is identical up to a certain stage since they are both produced by the polycondensation of purified terephtalic acid (PTA) or dimethyl terephtalate with mono ethylene glycol (MEG). Polyethylene terephthalate for use in the plastics industry is polymerised in a similar way to that for fibre production, in some cases in common facilities.

(13) The difference between the two types of polyethylene terephthalate is primarily determined by the fact that the product concerned undergoes a further process called "solid state processing" which increases its "intrinsic viscosity" value (IV value or ItV value). It is thus the level of IV that differentiates the product concerned from the polyethylene terephthalate used in the polyester fibre industry. Polyethylene terephthalate used for the production of plastic bottles and sheet requires an IV value of 0,7 or above. Polyethylene terephthalate with an IV value below 0,7 is used for the production of polyester fibre and is thus not concerned by this anti-subsidy investigation.

(14) The viscosity of polyethylene terephthalate may also be expressed in a different form, namely in terms of the "coefficient of viscosity" or "viscosity number". During the investigation it was found that the equivalent of an IV value of 0,7 is a coefficient of viscosity of 78 ml/g as measured by tests performed according to DIN 53728 and not, as indicated by the complainant, a coefficient of 173. This value resulted from the incorrect use of the test standard DIN 53728 in a report issued by Hoechst in 1991. Consequently the Commission has decided to use the corresponding value of 78 ml/g, or higher, that according to the correctly applied DIN 53728 test is the coefficient of viscosity for the type of polyethylene terephthalate used in the production of plastic bottles and sheets.

(15) In view of the above, the product under consideration is hereby defined as polyethylene terephthalate with a coefficient of viscosity of 78 ml/g or...