COMMISSION IMPLEMENTING REGULATION (EU) 2023/934
of 11 May 2023
imposing a definitive anti-dumping duty on imports of high tenacity yarns of polyesters originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) and a partial interim review pursuant to Article 11(3) of Regulation (EU) 2016/1036 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Previous and ongoing investigations, and measures in force
1.2.
Request for an expiry review and for a partial interim review
1.3.
Initiation of an expiry review and partial interim review
1.4.
Review investigation period and period considered in the expiry review and partial interim review investigations
2.
PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under review in the expiry review and the partial interim review
2.2.
Product concerned
2.3.
Like product
3.
EXPIRY REVIEW INVESTIGATION
3.1.
Interested parties and sampling
3.1.1.
Sampling of Union producers
3.1.2.
Sampling of exporting producers and unrelated importers
3.2.
Questionnaire replies and verification visits
3.3.
Subsequent procedure
3.4.
Dumping
3.4.1.
Preliminary remarks
3.4.2.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
3.4.3.
Application of Article 18 of the basic Regulation
3.4.4.
Normal value
3.4.4.1.
Existence of significant distortions
3.4.4.1.1.
Introduction
3.4.4.1.2.
Significant distortions affecting the domestic prices and costs in China
3.4.4.1.3.
Significant distortions according to Article 2(6a)(b), first indent of the basic Regulation: the market in question being served to a significant extent by enterprises which operate under the ownership, control or policy supervision or guidance of the authorities of the exporting country
3.4.4.1.4.
Significant distortions according to Article 2(6a)(b), second indent of the basic Regulation: State presence in firms allowing the state to interfere with respect to prices or costs
3.4.4.1.5.
Significant distortions according to Article 2(6a)(b), third indent of the basic Regulation: public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces
3.4.4.1.6.
Significant distortions according to Article 2(6a)(b), fourth indent of the basic Regulation: the lack, discriminatory application or inadequate enforcement of bankruptcy, corporate or property laws
3.4.4.1.7.
Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.4.4.1.8.
Significant distortions according to Article 2(6a)(b), sixth indent of the basic Regulation: access to finance granted by institutions which implement public policy objectives or otherwise not acting independently of the State
3.4.4.1.9.
Systemic nature of the distortions described
3.4.4.1.10.
Conclusion
3.4.4.2.
Representative country
3.4.4.2.1.
General remarks
3.4.4.2.2.
A level of economic development similar to China and production of the product under review
3.4.4.2.3.
Availability of relevant public data in the representative country
3.4.4.2.4.
Level of social and environmental protection
3.4.4.2.5.
Conclusion
3.4.5.
Dumping margin
3.5.
Likelihood of continuation of dumping
3.5.1.
Production capacity and spare capacity in China
3.5.2.
Attractiveness of the Union market
3.6.
Conclusion on dumping and likelihood of continuation of dumping
3.7.
Injury
3.7.1.
Definition of the Union industry and Union production
3.7.2.
Union consumption
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Total Union consumption |
244 112 |
228 168 |
208 516 |
253 039 |
||
Index |
100 |
93 |
85 |
104 |
||
Captive market |
16 046 |
13 911 |
16 563 |
22 322 |
||
Index |
100 |
87 |
103 |
139 |
||
Free market |
228 065 |
214 256 |
191 953 |
230 717 |
||
Index |
100 |
94 |
84 |
101 |
||
|
3.7.2.1.
Volume and market share of the imports from the country concerned
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Volume of imports from exporters currently subject to duties (tonnes) |
[58 000 – 63 000 ](88) |
[59 000 – 64 000 ] |
[58 000 – 63 000 ] |
[69 000 – 74 000 ] |
||
Index |
100 |
101 |
99 |
117 |
||
Market share |
[25 % -30 %] |
[27 % –32 %] |
[30 % –35 %] |
[29 % –34 %] |
||
Index |
100 |
107 |
118 |
115 |
||
|
3.7.2.2.
Prices of the imports from the country concerned: price undercutting and price suppression
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
China (exporters currently subject to duties) |
1 655 |
1 531 |
1 195 |
1 440 |
||
Index |
100 |
92 |
72 |
87 |
||
|
3.7.3.
Economic situation of the Union industry
3.7.3.1.
General remarks
3.7.3.2.
Macroeconomic indicators
3.7.3.2.1.
Production, production capacity and capacity utilisation
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Production volume (tonnes) |
104 834 |
100 373 |
90 470 |
116 803 |
||
Index |
100 |
96 |
86 |
111 |
||
Production capacity (tonnes) |
128 826 |
133 544 |
134 426 |
133 517 |
||
Index |
100 |
104 |
104 |
104 |
||
Capacity utilisation |
81 % |
75 % |
67 % |
87 % |
||
Index |
100 |
92 |
83 |
108 |
||
|
3.7.3.2.2.
Sales volume and market share
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Sales volume on the Union market (tonnes) |
70 753 |
64 150 |
59 880 |
67 335 |
||
Index |
100 |
91 |
85 |
95 |
||
Market share |
31 % |
30 % |
31 % |
29 % |
||
|
3.7.3.2.3.
Growth
3.7.3.2.4.
Employment and productivity
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Number of employees |
1 024 |
1 014 |
993 |
1 034 |
||
Index |
100 |
99 |
97 |
101 |
||
Productivity (tonnes/employee) |
102 |
99 |
91 |
113 |
||
Index |
100 |
97 |
89 |
110 |
||
|
3.7.3.2.5.
Magnitude of the dumping margin and recovery from past dumping
3.7.3.3.
Microeconomic indicators
3.7.3.3.1.
Prices and factors affecting prices
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Average unit sales price in the Union (EUR/tonne) |
2 042 |
1 974 |
1 713 |
1 957 |
||
Index |
100 |
97 |
84 |
96 |
||
Unit cost of production (EUR/tonne) |
2 371 |
2 357 |
2 039 |
2 246 |
||
Index |
100 |
99 |
86 |
95 |
||
|
3.7.3.3.2.
Labour costs
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Average labour costs per employee (EUR) |
48 153 |
49 499 |
46 821 |
51 680 |
||
Index |
100 |
103 |
97 |
107 |
||
|
3.7.3.3.3.
Inventories
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Closing stocks (tonnes) |
7 721 |
8 052 |
6 510 |
6 991 |
||
Index |
100 |
104 |
84 |
91 |
||
Closing stocks as a percentage of production |
14 |
16 |
13 |
12 |
||
|
3.7.3.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
-10 |
-15 |
-17 |
-8 |
||
Index |
100 |
153 |
174 |
86 |
||
Cash flow (EUR) |
-8 902 195 |
-4 318 803 |
-2 067 021 |
-5 374 726 |
||
Index |
100 |
49 |
23 |
60 |
||
Investments (EUR) |
12 926 148 |
7 405 795 |
2 087 298 |
4 495 812 |
||
Index |
100 |
57 |
16 |
35 |
||
Return on investments |
-4 % |
-6 % |
-6 % |
-4 % |
||
Index |
100 |
158 |
154 |
101 |
||
|
3.7.4.
Conclusion on the situation of the Union industry
3.8.
Causation
3.8.1.
Effects of the dumped imports
3.8.2.
Effects of other factors
3.8.2.1.
Imports from Chinese exporters currently not subject to duties
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Volume of imports into the Union from Hailide China (tonnes) |
[50 000 – 55 000 ] |
[51 000 – 56 000 ] |
[43 000 – 48 000 ] |
[43 000 – 48 000 ] |
||
Index |
100 |
102 |
86 |
86 |
||
Market share |
[20 % – 25 %] |
[23 % – 28 %] |
[21 % – 26 %] |
[18 % – 23 %] |
||
Index |
100 |
109 |
102 |
85 |
||
|
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Hailide |
[1 700 – 1 800 ] |
[1 600 – 1 700 ] |
[1 300 – 1 400 ] |
[1 500 – 1 600 ] |
||
Index |
100 |
96 |
77 |
91 |
||
|
3.8.2.2.
Imports from third countries
Country |
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
South Korea |
Volume (tonnes) |
15 150 |
13 025 |
9 259 |
15 167 |
||
|
Index |
100 |
86 |
61 |
100 |
||
|
Market share |
7 % |
6 % |
5 % |
7 % |
||
|
Average price (EUR/tonne) |
2 024 |
2 051 |
1 803 |
2 077 |
||
|
Index |
100 |
101 |
89 |
103 |
||
Vietnam |
Volume (tonnes) |
500 |
129 |
776 |
12 231 |
||
|
Index |
100 |
26 |
155 |
2 444 |
||
|
Market share |
0 % |
0 % |
0 % |
5 % |
||
|
Average price (EUR/tonne) |
2 340 |
4 136 |
2 276 |
1 537 |
||
|
Index |
100 |
177 |
97 |
66 |
||
Taiwan |
Volume (tonnes) |
6 776 |
4 485 |
3 795 |
7 375 |
||
|
Index |
100 |
66 |
56 |
109 |
||
|
Market share |
3 % |
2 % |
2 % |
3 % |
||
|
Average price (EUR/tonne) |
1 874 |
1 858 |
1 636 |
1 816 |
||
|
Index |
100 |
99 |
87 |
97 |
||
Other third countries |
Volume (tonnes) |
19 759 |
15 261 |
11 917 |
11 364 |
||
|
Index |
100 |
77 |
60 |
58 |
||
|
Market share |
9 % |
7 % |
6 % |
5 % |
||
|
Average price (EUR/tonne) |
2 586 |
2 780 |
2 683 |
2 740 |
||
|
Index |
100 |
108 |
104 |
106 |
||
Total of all third countries except the country concerned |
Volume (tonnes) |
42 185 |
32 900 |
25 747 |
46 137 |
||
|
Index |
100 |
78 |
61 |
109 |
||
|
Market share |
18 % |
15 % |
13 % |
20 % |
||
|
Average price (EUR/tonne) |
2 267 |
2 371 |
2 200 |
2 055 |
||
|
Index |
100 |
105 |
97 |
91 |
||
|
3.8.2.3.
Export performance of the Union industry
|
2018 |
2019 |
2020 |
Review Investigation Period |
||
Export volume (tonnes) |
21 674 |
19 603 |
18 729 |
21 299 |
||
Index |
100 |
90 |
86 |
98 |
||
Average price (EUR/tonnes) |
2 208 |
2 161 |
1 767 |
2 272 |
||
Index |
100 |
98 |
80 |
103 |
||
|
3.8.2.4.
Captive consumption
3.8.2.5.
High energy prices and inflation
3.8.3.
Conclusion on causation
3.9.
Likelihood of continuation of injury
3.9.1.
The production capacity and spare capacity in China
3.9.2.
Relation between Chinese export prices to third countries and the price level in the Union
3.9.3.
Conclusion
3.10.
Union interest
3.10.1.
Interest of the Union industry
3.10.2.
Interest of unrelated importers
3.10.3.
Interest of users
3.10.3.1.
Financial impact
3.10.3.2.
Supply stability
3.10.3.3.
Risk of transferring production capacities outside the EU
3.10.4.
Conclusion on Union interest
3.11.
Claims for suspension by Unifull and OTIZ
3.12.
Conclusion
4.
PARTIAL INTERIM REVIEW INVESTIGATION
4.1.
Interested parties and sampling
4.1.1.
Sampling of exporting producers and unrelated importers
4.1.2.
Individual examination request
4.2.
Questionnaire replies and remote cross-checks
4.3.
Suspension request
4.4.
Subsequent procedure
4.5.
Dumping
4.5.1.
Determination of the normal value
4.5.2.
Comments by interested parties on existence of significant distortions
4.5.3.
Comments of the parties on the choice of representative country
4.5.4.
Sources used to establish undistorted costs
Factor of Production |
Tariff line |
Source of data the Commission intends to use Raw materials |
Prices (CNY) |
||||
|
|||||||
Purified terephthalic acid (PTA) |
291736 00 0011 |
Global Trade Atlas (GTA)(95) Market Access Map, International Trade Centre (MacMap)(96) |
4,91 CNY/Kg |
||||
Mono-ethylene glycol (MEG) |
290531 |
Global Trade Atlas (GTA) Market Access Map, International Trade Centre (MacMap) |
4,73 CNY/Kg |
||||
Poly(ethylene terephthalate) (PET) chips |
390769 |
Global Trade Atlas (GTA) Market Access Map, International Trade Centre (MacMap) |
7,14 CNY/Kg |
||||
Spinning Finish Oil |
340311 340391 |
Global Trade Atlas (GTA) Market Access Map, International Trade Centre (MacMap) |
17,41 CNY/Kg |
||||
Labour |
|||||||
Labour |
[N/A] |
Turkish Statistical Institute(97) |
37,83 CNY/Manhour |
||||
Energy |
|||||||
Electricity |
[N/A] |
Turkish Statistical Institute |
Consumption bands (MWh)
|
||||
|
|
|
|
||||
Gas |
[N/A] |
Turkish Statistical Institute |
Consumption bands (m3)
|
||||
Coal |
270111 270112 10 270112 90 270119 |
Global Trade Atlas (GTA) Market Access Map, International Trade Centre (MacMap) |
716,59 CNY/MT |
||||
By-product/Waste |
|||||||
Waste yarn |
550510 30 0011 550510 30 0019 |
Global Trade Atlas (GTA) Market Access Map, International Trade Centre (MacMap) |
3,15 CNY/Kg |
4.5.5.
Raw materials used in the production process
4.5.6.
Labour
4.5.7.
Energy
4.5.8.
SG&A and profits
4.5.9.
Calculation of the normal value
4.6.
Export price
4.7.
Comparison
4.8.
Dumping margins
Company |
Definitive dumping margin |
Huzhou Unifull Industrial Fibre Co., Ltd., Zhejiang Unifull Industrial Fibre Co., Ltd. and Zhejiang Unifull Hi-Tech Industry Co., Ltd |
23,7 % |
Zhejiang Guxiandao Polyester Dope Dyed Yarn Co., Ltd. |
9,7 % |
Other cooperating companies |
17,2 % |
All other companies |
23,7 % |
4.9.
Lasting nature of changed circumstances in the partial interim review
5.
ANTI-DUMPING MEASURES
Company |
Dumping margin |
Injury margin |
Definitive anti-dumping duty |
Huzhou Unifull Industrial Fibre Co., Ltd. Zhejiang Unifull Industrial Fibre Co., Ltd. Zhejiang Unifull Hi-Tech Industry Co., Ltd. |
23,7 % |
57,6 % |
23,7 % |
Zhejiang Guxiandao Polyester Dope Dyed Yarn Co., Ltd. |
9,7 % |
57,1 % |
9,7 % |
Other cooperating companies not included in the sample |
17,2 % |
57,3 % |
17,2 % |
All other companies |
23,7 % |
57,6 % |
23,7 % |
Article 1
Company |
Definitive anti-dumping duty (%) |
TARIC additional code |
Huzhou Unifull Industrial Fibre Co., Ltd. Zhejiang Unifull Industrial Fibre Co., Ltd. Zhejiang Unifull Hi-Tech Industry Co., Ltd. |
23,7 |
899E |
Zhejiang Guxiandao Polyester Dope Dyed Yarn Co., Ltd. |
9,7 |
899F |
Other cooperating companies listed in Annex |
17,2 |
A977 |
All other companies (except Zhejiang Hailide New Material Co. Ltd. – TARIC additional code A976) |
23,7 |
A999 |
Article 2
ANNEX
Company Name |
City |
Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. |
Jinjiang |
Jiangsu Hengli Chemical Fibre Co., Ltd. |
Suzhou |
Jiangsu Solead New Material Group Co., Ltd. |
Yixing |
Oriental Industries (Suzhou) Ltd |
Suzhou |
Zhejiang Kingsway High-tech Fiber Co., Ltd. |
Haining |
Zhejiang Sanwei Material Technology Co., Ltd. |
Taizhou |