Notice of initiation of a partial interim review of the countervailing measures applicable to imports of polyethylene terephthalate (PET) film originating in India

(2006/C 180/06)

The Commission has decided on its own initiative to initiate a partial interim review pursuant to Article 19 of Council Regulation (EC) No 2026/97 on protection against subsidised imports from countries not members of the European Community (1) (‘the basic Regulation’). The review is limited in scope to the examination of subsidisation as far as one exporting producer; Jindal Poly Films Limited is concerned.

1.   Product

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

2.   Existing measures

The measure currently in force on imports of PET film from Jindal Poly Films Limited is a definitive countervailing duty imposed by Council Regulation (EC) No 367/2006 (2) on imports of polyethylene terephthalate (PET) film originating in India.

3.   Grounds for the review

There is sufficient prima facie evidence available to the Commission, that the circumstances with regard to subsidisation on the basis of which measures were established have changed and that these changes are of a lasting nature.

The information at the Commission's disposal indicates that the existing measure on imports of the product under review from Jindal Poly Films Limited at its present level is no longer sufficient to counteract the subsidisation which is causing injury. There is sufficient evidence that the subsidy amount has increased well above the currently applicable duty for Jindal Poly Films Limited.

In particular, Jindal Poly Films Limited appears to benefit from a number of subsidies granted by the Government of India and other regional subsidies. The subsidies consist of schemes of benefits to industries located in special economic zones/export oriented units, the duty entitlement passbook scheme, the advance licences/the advance release orders scheme, the export promotion capital goods scheme, the package scheme of incentives of the Government of Maharashtra, the export credit scheme and an income tax exemption.

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 Jindal Poly Films Limited and they appear to continue the trend of countervailable subsidies being granted to that company, which are causing injury. They appear to be contingent upon export performance and therefore specific and countervailable or to be otherwise specific and countervailable.

In the light of the above, the Commission considers that as far as subsidisation of Jindal Poly Films Limited is concerned, there is sufficient prima facie evidence that the circumstances with regard to subsidisation have changed significantly and, therefore, the measures should be reviewed.

4.   Procedure

Having determined, after consulting the Advisory Committee, that sufficient evidence exists to justify the initiation of an ex officio partial interim review, the Commission hereby initiates a review in accordance with Article 19 of the basic Regulation.

If it should be determined that the measures in force on imports of PET film produced by Jindal Poly Films Limited should be amended, the extent to which the rate of duty applicable to imports produced by ‘all other companies’ as set out in Article 1(2) of Regulation (EC) No 367/2006 requires to be amended shall also be reviewed.

(a)   Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to Jindal Poly Films Limited and to the Indian authorities. This information and supporting evidence should reach the Commission within the time limit set in point 5(a) of this notice.

(b)   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 5(a) 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 5(b) of this notice.

5.   Time limits

(a)   For parties to make themselves known, to submit questionnaire replies and any other information

All interested parties, if their representations are to be taken into account during the investigation, must make themselves known by contacting the Commission, present their views and submit questionnaire replies or any other information within 40 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified. Attention is drawn to the fact that the exercise of most procedural rights set out in the basic Regulation depends on the party's making itself known within the aforementioned period.

(b)   Hearings

All interested parties may also apply to be heard by the Commission within the same 40-day time limit.

6.   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 (3)’ 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:

7.   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.

(1)  OJ L 288, 21.10.97, p. 1. Regulation as last amended by Council Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).

(2)  OJ L 68, 8.3.2006, p. 15.

(3)  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.