COMMISSION REGULATION (EU) No 473/2010
of 31 May 2010
imposing a provisional countervailing duty on imports of certain polyethylene terephthalate originating in Iran, Pakistan and the United Arab Emirates
1.
PROCEDURE
1.1.
Initiation
1.2.
Parties concerned by the proceeding
1.3.
Investigation period
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
3.
SUBSIDISATION
3.1.
Iran
3.1.1.
Introduction
3.1.2.
Specific Schemes
I.
Measures connected to Special Economic Zones (SEZs) – Petrochemical SEZ
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
II.
Financing from National Petrochemical Company to the PET exporting producer
(a)
Findings of the investigation
(b)
Conclusion
(c)
Calculation of the subsidy amount
3.1.3.
Amount of countervailable subsidies
3.2.
Pakistan
3.2.1.
Specific Schemes
I.
Manufacturing Bond Scheme
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
II.
Imports of plant, machinery and equipment in Manufacturing Bond
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
III.
Tariff protection on purchases of PTA in the domestic market
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
IV.
Final Tax Regime (FTR)
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
V.
Export Long-Term Fixed Rate Financing Scheme (LTF-EOP)
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
VI.
Export Finance Scheme from the State Bank of Pakistan (EFS)
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
VII.
Finance under F.E. Circular No. 25 of the State Bank of Pakistan
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
3.2.2.
Amount of countervailable subsidies
3.3.
United Arab Emirates (UAE)
3.3.1.
Specific Schemes
I.
Federal Law No. 1 of 1979
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
II.
Free Trade Zone (FTZ)
(a)
Legal Basis
(b)
Eligibility
(c)
Practical implementation
(d)
Findings of the investigation
(e)
Conclusion
(f)
Calculation of the subsidy amount
3.3.2.
Amount of countervailable subsidies
4.
INJURY
4.1.
Union production and Union industry
4.2.
Union consumption
|
2006 |
2007 |
2008 |
IP |
Total EU consumption (tonnes) |
2 709 400 |
2 936 279 |
2 868 775 |
2 996 698 |
Index (2006=100) |
100 |
108 |
106 |
111 |
Source: questionnaire replies, Eurostat data and complaint. |
4.3.
Imports from the countries concerned
(a)
Cumulative assessment of the effects of the imports concerned
(b)
Volume of the imports concerned
|
2006 |
2007 |
2008 |
IP |
Volume of subsidised imports (tonnes) |
55 939 |
67 067 |
218 248 |
304 202 |
Index (2006=100) |
100 |
120 |
390 |
544 |
Market share of subsidised imports |
2,1 % |
2,3 % |
7,6 % |
10,2 % |
Source: Eurostat. |
(c)
Market share of the imports concerned
(d)
Prices
(i) Price evolution
|
2006 |
2007 |
2008 |
IP |
Price of imports (EUR/ton) |
1 030 |
1 023 |
1 015 |
882 |
Index (2006=100) |
100 |
99 |
99 |
86 |
Source: Eurostat. |
(ii) Price undercutting
4.4.
Situation of the Union industry
4.4.1.
Macroeconomic elements
(a)
Production
|
2006 |
2007 |
2008 |
IP |
Production (tonnes) |
2 439 838 |
2 570 198 |
2 327 169 |
2 338 577 |
Index (2006=100) |
100 |
105 |
95 |
96 |
Source: questionnaire replies and complaint. |
(b)
Production capacity and capacity utilisation rates
|
2006 |
2007 |
2008 |
IP |
Production capacity (tonnes) |
2 954 089 |
2 971 034 |
3 118 060 |
3 385 738 |
Index (2006=100) |
100 |
101 |
106 |
115 |
Capacity utilisation |
83 % |
87 % |
75 % |
69 % |
Index (2006=100) |
100 |
105 |
90 |
84 |
Source: questionnaire replies and complaint. |
(c)
Sales volume
|
2006 |
2007 |
2008 |
IP |
EU sales (tonnes) |
2 202 265 |
2 318 567 |
2 171 203 |
2 133 787 |
Index (2006=100) |
100 |
105 |
99 |
97 |
Source: questionnaire replies and complaint. |
(d)
Market share
|
2006 |
2007 |
2008 |
IP |
Market share of the Union producers |
84,9 % |
83,2 % |
79,8 % |
75,1 % |
Index (2006=100) |
100 |
98 |
94 |
88 |
Source: questionnaire replies, complaint and Eurostat. |
(e)
Growth
(f)
Employment
|
2006 |
2007 |
2008 |
IP |
Employment (persons) |
2 410 |
2 100 |
2 060 |
2 057 |
Index (2006=100) |
100 |
87 |
85 |
85 |
Source: questionnaire replies and complaint. |
(g)
Productivity
|
2006 |
2007 |
2008 |
IP |
Productivity (tonnes per employee) |
1 013 |
1 224 |
1 130 |
1 137 |
Index (2006=100) |
100 |
121 |
112 |
112 |
Source: questionnaire replies and complaint. |
(h)
Factors affecting sales prices
|
2006 |
2007 |
2008 |
IP |
Unit price EU market (EUR/ton) |
1 110 |
1 105 |
1 111 |
977 |
Index (2006=100) |
100 |
100 |
100 |
88 |
Source: questionnaire replies and complaint. |
(i)
Magnitude of the subsidy margin and recovery from past dumping and subsidisation
4.4.2.
Microeconomic elements
(a)
Stocks
Sample |
2006 |
2007 |
2008 |
IP |
Closing stock (tonnes) |
61 374 |
57 920 |
46 951 |
47 582 |
Index (2006=100) |
100 |
94 |
77 |
78 |
Source: questionnaire replies. |
(b)
Wages
Sample |
2006 |
2007 |
2008 |
IP |
Annual labour cost (EUR) |
27 671 771 |
30 818 299 |
30 077 380 |
27 723 396 |
Index (2006=100) |
100 |
111 |
109 |
100 |
Source: questionnaire replies. |
(c)
Profitability and return on investments
Sample |
2006 |
2007 |
2008 |
IP |
Profitability of EU (% of net sales) |
–6,9 % |
–1,5 % |
–9,3 % |
–7,5 % |
Index (2006=-100) |
– 100 |
–22 |
– 134 |
– 108 |
ROI (profit in % of net book value of investments) |
–9,6 % |
–3,1 % |
–16,8 % |
–12,3 % |
Index (2006=-100) |
– 100 |
–32 |
– 175 |
– 127 |
Source: questionnaire replies. |
(d)
Cash flow and ability to raise capital
Sample |
2006 |
2007 |
2008 |
IP |
Cash flow (EUR) |
–18 453 130 |
19 478 426 |
–42 321 103 |
–11 038 129 |
Index (2006=100) |
– 100 |
206 |
– 229 |
–60 |
Source: questionnaire replies. |
(e)
Investments
Sample |
2006 |
2007 |
2008 |
IP |
Net investments (EUR) |
98 398 284 |
64 607 801 |
6 537 577 |
4 298 208 |
Index (2006=100) |
100 |
66 |
7 |
4 |
Source: questionnaire replies. |
4.5.
Conclusion on injury
5.
CAUSATION
5.1.
Introduction
5.2.
Effect of the subsidised imports
5.3.
Effect of other factors
5.3.1.
Export activity of the Union industry
Union industry |
2006 |
2007 |
2008 |
IP |
Export sales (tonnes) |
25 677 |
24 103 |
23 414 |
28 504 |
Index (2006=100) |
100 |
94 |
91 |
111 |
Export sales (EUR) |
28 473 679 |
27 176 204 |
25 109 209 |
28 564 676 |
Index (2006=100) |
100 |
95 |
88 |
100 |
Price of exports (EUR/ton) |
1 109 |
1 128 |
1 072 |
1 002 |
Source: questionnaire replies. |
5.3.2.
Imports from third countries
(a)
Republic of Korea
|
2006 |
2007 |
2008 |
IP |
Volume of imports from South Korea (tonnes) |
94 023 |
130 994 |
177 341 |
231 107 |
Index (2006=100) |
100 |
139 |
189 |
246 |
Market share of imports from South Korea |
3,5 % |
4,5 % |
6,2 % |
7,7 % |
Price of imports (EUR/ton) |
1 084 |
1 071 |
1 063 |
914 |
Source: Eurostat. |
(b)
Other countries
|
2006 |
2007 |
2008 |
IP |
Volume of imports from other countries (tonnes) |
259 438 |
296 418 |
185 286 |
210 772 |
Index (2006=100) |
100 |
114 |
71 |
81 |
Market share of imports from other countries |
9,6 % |
10,1 % |
6,5 % |
7,0 % |
Price of imports (EUR/ton) |
1 176 |
1 144 |
1 194 |
1 043 |
Source: Eurostat. |
5.3.3.
Competition from the non-cooperating producers in the Union
Non-cooperating EU producers |
2006 |
2007 |
2008 |
IP |
EU sales (tonnes) |
554 329 |
493 363 |
356 581 |
478 282 |
Index (2006=100) |
100 |
89 |
64 |
86 |
Market share |
20,5 % |
16,8 % |
12,4 % |
16,0 % |
Source: complaint. |
5.3.4.
Economic downturn
5.3.5.
Geographical location
5.3.6.
Vertical integration
5.4.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry and other Union producers
6.2.
Interest of unrelated importers in the Union
6.3.
Interest of the raw material suppliers in the Union
6.4.
Interest of the users
(a)
Converters
(b)
Bottlers
6.5.
Shortage of PET supply
6.6.
Other arguments
6.7.
Conclusion on Union interest
7.
PROVISIONAL COUNTERVAILING MEASURES
7.1.
Injury elimination level
Country |
Injury elimination level |
Iran |
17,0 % |
Pakistan |
15,2 % |
UAE |
18,5 % |
7.2.
Provisional measures
Country |
Total subsidy margin |
of which Export subsidy |
Injury margin (on quarterly basis) |
Provisional Countervailing duty rate |
|
% |
Amount (EUR/t) |
||||
Iran |
53 % |
2 % |
17,0 % |
17,0 % |
142,97 |
Pakistan |
9,7 % |
7,4 % |
15,2 % |
9,7 % |
83,64 |
UAE |
5,1 % |
0 % |
18,5 % |
5,1 % |
42,34 |
7.3.
Final provision
Article 1
Country |
Countervailing duty rate (EUR/tonne) |
Iran: all companies |
142,97 |
Pakistan: all companies |
83,64 |
United Arab Emirates: all companies |
42,34 |