COMMISSION IMPLEMENTING REGULATION (EU) No 2019/1286
of 30 July 2019
imposing a definitive countervailing duty on imports of certain polyethylene terephthalate (PET) originating in India following an expiry review pursuant to Article 18 of the Regulation (EU) 2016/1037 of the European Parliament and the Council
1.
PROCEDURE
1.1.
Measures in force
1.2.
Request for an expiry review
1.3.
Initiation
1.4.
Parallel investigation
1.5.
Review investigation period and period considered
1.6.
Interested parties
1.6.1.
Sampling
1.6.2.
Sampling of Union producers
1.6.3.
Sampling of unrelated importers
1.6.4.
Sampling of exporting producers
1.6.5.
Questionnaires and verification visits
2.
PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1.
Product under review
2.2.
Like product
3.
LIKELIHOOD OF CONTINUATION OR RECURRENCE OF SUBSIDISATION
3.1.
Advance Authorisation Scheme (AAS)
3.1.1.
Legal Basis
3.1.2.
Eligibility
3.1.3.
Practical implementation
3.1.4.
Conclusion on the AAS
3.1.5.
Calculation of the subsidy amount
3.2.
‘Duty Drawback Scheme’ under Rule 3(2) (DDS)
3.2.1.
Legal Basis
3.2.2.
Eligibility
3.2.3.
Practical implementation
3.2.4.
Conclusion on DDS
3.2.5.
Calculation of the subsidy amount
3.3.
Export Promotion Capital Goods Scheme (EPCGS)
3.3.1.
Legal basis
3.3.2.
Eligibility
3.3.3.
Practical implementation
3.3.4.
Conclusion on EPCGS
3.3.5.
Calculation of the subsidy amount
3.4.
Merchandise Export from India Scheme (MEIS)
3.4.1.
Legal basis
3.4.2.
Eligibility
3.4.3.
Practical implementation
3.4.4.
Conclusion on MEIS
3.4.5.
Calculation of the subsidy amount
3.5.
Gujarat Electricity Duty Exemption Scheme (GEDES)
3.6.
Amount of countervailable subsidies
|
DDS |
EPCGS |
MEIS |
TOTAL |
IDIPL |
0,38 % |
0,09 % |
1,92 % |
2,3 % |
RIL |
1,44 % |
0,30 % |
1,94 % |
3,6 % |
3.7.
Conclusions on the likelihood of a continuation of subsidisation
4.
LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2014 |
2015 |
2016 |
2017 |
RIP |
Union consumption (tonnes) |
3 066 080 |
3 367 935 |
3 541 644 |
3 594 779 |
3 529 250 |
Index (2014 = 100) |
100 |
110 |
116 |
117 |
115 |
Source: questionnaire replies of sampled Union producers, review request, information provided by the applicant, Eurostat. |
4.3.
Imports from India
4.3.1.
Volume and market share
|
2014 |
2015 |
2016 |
2017 |
RIP |
|
India |
Import volume (tonnes) |
32 220 |
39 235 |
134 550 |
162 913 |
156 675 |
Index (2014 = 100) |
100 |
122 |
418 |
506 |
486 |
|
Market share |
1,1 % |
1,2 % |
3,8 % |
4,5 % |
4,4 % |
|
Source: Eurostat |
4.3.2.
Prices and price undercutting
|
2014 |
2015 |
2016 |
2017 |
RIP |
|
India |
Import prices (EUR/tonne) |
1 063 |
811 |
776 |
897 |
916 |
Index (2014 = 100) |
100 |
76 |
73 |
84 |
86 |
|
Source: Eurostat |
4.3.3.
Imports from other third countries
|
2014 |
2015 |
2016 |
2017 |
RIP |
|
All other third countries |
Import volume |
726 310 |
535 848 |
539 301 |
617 620 |
668 050 |
Index |
100 |
74 |
74 |
85 |
92 |
|
Market share |
23,7 % |
15,9 % |
15,2 % |
17,2 % |
18,9 % |
|
Average price |
1 024 |
939 |
849 |
939 |
949 |
|
Index |
100 |
92 |
83 |
92 |
93 |
|
Korea |
Import volume |
255 597 |
205 421 |
219 952 |
190 640 |
202 442 |
Index |
100 |
80 |
86 |
75 |
79 |
|
Market share |
8,3 % |
6,1 % |
6,2 % |
5,3 % |
5,7 % |
|
Average price |
1 032 |
934 |
844 |
939 |
960 |
|
Index |
100 |
90 |
82 |
91 |
93 |
|
Turkey |
Import volume |
31 582 |
108 757 |
133 464 |
125 556 |
120 171 |
Index |
100 |
344 |
423 |
398 |
381 |
|
Market share |
1,0 % |
3,2 % |
3,8 % |
3,5 % |
3,4 % |
|
Average price |
1 090 |
950 |
879 |
975 |
991 |
|
Index |
100 |
87 |
81 |
89 |
91 |
|
China |
Import volume |
25 017 |
19 239 |
7 347 |
79 652 |
109 969 |
Index |
100 |
77 |
29 |
318 |
440 |
|
Market share |
0,8 % |
0,6 % |
0,2 % |
2,2 % |
3,1 % |
|
Average price |
996 |
895 |
748 |
869 |
881 |
|
Index |
100 |
90 |
75 |
87 |
88 |
|
Other third countries |
Import volume |
414 114 |
202 431 |
178 538 |
221 772 |
235 468 |
Index |
100 |
49 |
43 |
54 |
57 |
|
Market share |
13,5 % |
6,0 % |
5,0 % |
6,2 % |
6,7 % |
|
Average price |
1 015 |
941 |
836 |
944 |
951 |
|
Index |
100 |
93 |
82 |
93 |
94 |
4.4.
Economic situation of the Union industry
4.4.1.
General remarks
4.4.2.
Macroeconomic indicators
(a)
Production, production capacity and capacity utilisation
|
2014 |
2015 |
2016 |
2017 |
RIP |
Production volume (tonnes) |
2 392 313 |
2 879 296 |
2 963 309 |
2 907 255 |
2 751 726 |
Index (2014 = 100) |
100 |
120 |
124 |
122 |
115 |
Production capacity (tonnes) |
2 952 163 |
3 351 713 |
3 368 849 |
3 323 079 |
3 110 887 |
Index (2014 = 100) |
100 |
114 |
114 |
113 |
105 |
Capacity utilisation |
81 % |
86 % |
88 % |
87 % |
88 % |
Source: information provided by the applicant, verified questionnaire replies of the sampled Union producers. |
(b)
Sales volume and market share
|
2014 |
2015 |
2016 |
2017 |
RIP |
Sales volume in the Union (tonnes) |
2 098 165 |
2 552 508 |
2 649 449 |
2 591 694 |
2 510 569 |
Index (2012 = 100) |
100 |
122 |
126 |
124 |
120 |
Market share |
68,4 % |
75,8 % |
74,8 % |
72,1 % |
71,1 % |
Source: information provided by the applicant, verified questionnaire replies of the sampled Union producers. |
(c)
Growth
(d)
Employment and productivity
|
2014 |
2015 |
2016 |
2017 |
RIP |
Number of employees |
1 421 |
1 340 |
1 317 |
1 310 |
1 319 |
Index (2014 = 100) |
100 |
94 |
93 |
92 |
93 |
Productivity (tonnes/employee) |
1 684 |
2 148 |
2 249 |
2 219 |
2 087 |
Index (2014 = 100) |
100 |
128 |
134 |
132 |
124 |
Source: information provided by the applicant, verified questionnaire replies of the sampled Union producers. |
(e)
Magnitude of the subsidy margin and recovery from past subsidisation
4.4.3.
Microeconomic indicators
(a)
Prices and factors affecting prices
|
2014 |
2015 |
2016 |
2017 |
RIP |
Average unit selling price in the Union (EUR/tonne) |
1 037 |
926 |
841 |
964 |
963 |
Index (2014 = 100) |
100 |
89 |
81 |
93 |
93 |
Unit cost of production (EUR/tonne) |
1 087 |
932 |
839 |
936 |
943 |
Index (2014 = 100) |
100 |
86 |
77 |
86 |
87 |
Source: verified questionnaire replies of the sampled Union producers. |
(b)
Labour costs
|
2014 |
2015 |
2016 |
2017 |
RIP |
Average labour costs per employee (EUR/employee) |
58 466 |
57 511 |
62 935 |
60 855 |
59 934 |
Index (2014 = 100) |
100 |
98 |
108 |
104 |
103 |
Source: verified questionnaire replies of the sampled Union producers. |
(c)
Closing stocks
|
2014 |
2015 |
2016 |
2017 |
RIP |
Closing stocks |
45 042 |
37 339 |
51 941 |
48 648 |
34 139 |
Index (2014 = 100) |
100 |
83 |
115 |
108 |
76 |
Closing stocks as a percentage of production |
5 % |
4 % |
5 % |
5 % |
3 % |
Source: verified questionnaire replies of the sampled Union producers. |
(d)
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2014 |
2015 |
2016 |
2017 |
RIP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
– 4,2 % |
– 0,3 % |
– 0,6 % |
3,0 % |
3,7 % |
Cash flow (EUR) |
54 520 838 |
20 681 479 |
16 077 625 |
46 069 828 |
61 135 843 |
Index (2014 = 100) |
100 |
38 |
29 |
84 |
112 |
Investments (EUR) |
14 343 485 |
4 307 874 |
7 853 405 |
22 224 623 |
21 729 502 |
Index (2012 = 100) |
100 |
30 |
55 |
155 |
151 |
Return on investments |
– 11,8 % |
0,3 % |
– 0,6 % |
9,7 % |
12,0 % |
Source: verified questionnaire replies of the sampled Union producers. |
4.4.4.
Conclusion on the situation of the Union industry
4.4.5.
Conclusion
4.5.
Likelihood of recurrence of injury
4.5.1.
Preliminary remark
(a)
Attractiveness of the Union market
(b)
Production capacity and spare capacity available in India
(c)
Likely price levels of imports from India in the absence of countervailing measures
(d)
Existence of trade restrictive measures in other third countries on exports of PET from India
4.5.2.
Impact on the Union industry
5.
UNION INTEREST
5.1.
Interest of the Union industry
5.2.
Interest of the suppliers of the raw materials in the Union
5.3.
Interest of importers, traders and users
5.4.
Conclusion on Union interest
6.
COUNTERVAILING MEASURES
Article 1
Country |
Company |
Duty rate (EUR/tonne) |
TARIC additional code |
India |
Futura Polyesters Ltd |
0 |
A184 |
India |
IVL Dhunseri Petrochem Industries Private Limited |
18,73 |
C380 |
India |
Pearl Engineering Polymers Ltd |
74,6 |
A182 |
India |
Reliance Industries Limited |
29,21 |
A181 |
India |
Senpet Ltd |
22,0 |
A183 |
India |
All other companies |
69,4 |
A999 |