Notice of initiation of an expiry review of the countervailing measures applicable to imports of polyethylene terephthalate (PET) film originating in India

(2004/C 306/02)

Following the publication of a notice of impending expiry (1) of the countervailing measures in force on imports of polyethylene terephthalate (PET) film originating in India, (country concerned), the Commission has received a request for review pursuant to Article 18 of Council Regulation (EC) No 2026/97 (2) (the basic Regulation).

1.   Request for review

The request was lodged on 10 September 2004 by the following Community producers: DuPont Teijin Films, Mitsubishi Polyester Film GmbH, Nuroll SpA, Toray Plastics Europe (the applicants), representing a major proportion, in this case more than 50 %, of the total Community production of PET film.

2.   Product

The product under review is polyethylene terephthalate (PET) film originating in India (the product concerned), currently classifiable within CN codes ex 3920 62 19 and ex 3920 62 90. These CN codes are given only for information.

3.   Existing measures

The measures currently in force are a definitive countervailing duty imposed by Council Regulation (EC) No 2597/1999s (3).

4.   Grounds for the review

The applicants have provided evidence that the expiry of the measures would lead to a continuation of subsidisation and injury.

It is alleged that the exporters/producers of the product concerned have benefited and will continue to benefit from a number of subsidies granted by the Government of India. These alleged subsidies consist of schemes of benefits to industries located in special economic zones/export oriented units; the advance licenses; advance release orders scheme; the duty entitlement passbook scheme; an income tax exemption; the export promotion capital goods scheme; the duty free replenishment certificate; the package scheme of incentives of the Government of Maharashtra, the sales tax incentives scheme of the State of Uttaranchal, special import licences, capital infusions and export credits.

The total subsidy is estimated to be significant.

It is alleged that the above schemes are subsidies since they involve a financial contribution from the Government of India or other regional governments and confer a benefit to the recipients, i.e. to exporters/producers of PET film. They are alleged to be contingent upon export performance and therefore specific and countervailable or to be otherwise specific and countervailable.

The applicants have provided evidence that imports of the product concerned from India have increased overall in absolute terms.

It is also alleged that the volumes and the prices of the imported product concerned have continued, among other consequences, to have a negative impact on the level of prices charged by the Community industry, resulting in substantial adverse effects on the overall performance, the financial situation and the employment situation of the Community industry.

5.   Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists to justify the initiation of an expiry review, the Commission hereby initiates a review in accordance with Article 18 of the basic Regulation.

5.1.   Procedure for the determination of likelihood of subsidisation and injury

The investigation will determine whether the expiry of the measures would be likely, or unlikely, to lead to a continuation or recurrence of subsidization and injury.

(a)   Sampling

In view of the apparent number of parties involved in this proceeding, the Commission may decide to apply sampling, in accordance with Article 27 of the basic Regulation.

(b)   Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the sampled Community industry and to any association of producers in the Community, to the sampled exporters/producers in India, to any association of exporters/producers, to the importers, to any association of importers named in the request or which cooperated in the investigation leading to the measures subject to the present review, and to the authorities of the exporting country concerned.

In any event, all parties should contact the Commission forthwith by fax in order to find out whether they are listed in the request and if necessary request a questionnaire within the time limit set in paragraph 6(a)(i), given that the time limit set in paragraph 6(a)(ii) of this notice applies to all interested parties.

(c)   Collection of information and holding of hearings

All interested parties are hereby invited to make their views known, submit information other than questionnaire replies and to provide supporting evidence. This information and supporting evidence must reach the Commission within the time limit set in paragraph 6(a)(ii) of this notice.

Furthermore, the Commission may hear interested parties, provided that they make a request showing that there are particular reasons why they should be heard. This request must be made within the time limit set in paragraph 6(a)(iii) of this notice.

5.2.   Procedure for the assessment of Community interest

In accordance with Article 31 of the basic Regulation and in the event that the likelihood of continuation or recurrence of subsidisation and injury is confirmed, a determination will be made as to whether to maintain or repeal the anti-subsidy measures would not be against the Community interest. For this reason the Community industry, importers, their representative associations, representative users and representative consumer organisations, provided that they prove that there is an objective link between their activity and the product concerned, may, within the general time limits set in paragraph 6(a)(ii) of this notice, make themselves known and provide the Commission with information. The parties which have acted in conformity with the previous sentence may request a hearing, setting the particular reasons why they should be heard, within the time limit set in paragraph 6(a)(iii) of this notice. It should be noted that any information submitted pursuant to Article 31 will only be taken into account if supported by factual evidence at the time of submission.

6.   Time limits

(a)   General time limits

(b)   Specific time limit in respect of sampling

7.   Written submissions, questionnaire replies and correspondence

All submissions and requests made by interested parties must be made in writing (not in electronic format, unless otherwise specified) and must indicate the name, address, e-mail address, telephone and fax, and/or telex numbers of the interested party. All written submissions, including the information requested in this notice, questionnaire replies and correspondence provided by interested parties on a confidential basis shall be labelled as ‘Limited (6)’ and, in accordance with Article 29(2) of the basic Regulation, shall be accompanied by a non-confidential version, which will be labelled ‘For inspection by interested parties’.

Commission address for correspondence:

8.   Non-cooperation

In cases in which any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, provisional or final findings, affirmative or negative, may be made in accordance with Article 28 of the basic Regulation, on the basis of the facts available.

Where it is found that any interested party has supplied false or misleading information, the information shall be disregarded and use may be made of the facts available. If an interested party does not cooperate or cooperates only partially and findings are therefore based on facts available in accordance with Article 28 of the basic Regulation, the result may be less favourable to that party than if it had cooperated.

9.   Schedule of the review investigation

The review investigation will be concluded, according to Article 22(1) of the basic Regulation, within 15 months of the date of the publication of this notice in the Official Journal of the European Union.

(1)  OJ C 62, 11.3.2004, p. 4.

(2)  OJ L 288, 21.10.1997, p. 1. Regulation as last amended by Council Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(3)  OJ L 316, 10.12.1999, p. 1.

(4)  Individual margins may be claimed pursuant to Article 27(3) of the basic Regulation for companies not included in the sample.

(5)  For guidance on the meaning of related companies, please refer to Article 143 of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (OJ L 253, 11.10.1993, p. 1).

(6)  This means that the document is for internal use only. It is protected pursuant to Article 4 of Regulation (EC) No 1049/2001 of the European Parliament and of the Council (OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant to Article 29 of Council Regulation (EC) No 2026/97 (OJ L 288, 21.10.1997, p. 1) and Article 12 of the WTO Agreement on Subsidies and Countervailing Measures.