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Date: 2022-06-24 Category: Not Applicable State: Union Government Country: Europe

Commission Implementing Regulation (EU) 2022/977 of 22 June 2022 accepting two requests for new exporting producer treatment with regard to the definitive anti-dumping measures imposed 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) of Regulation (EU) 2016/1036 of the European Parliament and of the Council and amending Commission Implementing Regulation (EU) 2017/325

Issued by European Commission · Directorate-General for Trade and Economic Security

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Executive Summary & Key Takeaways

Executive Summary: Commission Implementing Regulation (EU) 2022/977 accepts the requests for new exporting producer treatment (NEPT) for Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. and Zhejiang Sanwei Material Technology Co., Ltd. concerning anti-dumping measures on imports of high tenacity yarns of polyesters from the People’s Republic of China. This regulation amends Implementing Regulation (EU) 2017/325 and entered into force on June 25, 2022. Key Points / Main Content: New Exporting Producer Treatment (NEPT): * Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. and Zhejiang Sanwei Material Technology Co., Ltd. requested and were granted NEPT status. * The Commission verified that both companies met the three conditions for NEPT: they did not export to the Union during the original investigation period, they are not related to any exporters/producers subject to the original measures, and they have exported to the Union after the original investigation period. * Both companies will be subject to the anti-dumping duty rate applicable to cooperating companies not included in the original sample. Amendment to Implementing Regulation (EU) 2017/325: * Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. (TARIC additional code A977) and Zhejiang Sanwei Material Technology Co., Ltd. (TARIC additional code A977) are added to the list of exporting producers in the Annex to Implementing Regulation (EU) 2017/325. Impact Analysis: European Commission: * Impact: The Commission adopted and published the regulation, amending existing anti-dumping measures. * Action Required: Ensure the implementation and enforcement of the updated anti-dumping duties. Union Industry: * Impact: The Union industry was informed of the decision, with no comments received. * Action Required: No specific action required. Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. and Zhejiang Sanwei Material Technology Co., Ltd.: * Impact: Granted NEPT status, resulting in a specific anti-dumping duty rate. * Action Required: Comply with the anti-dumping duty rate applicable to cooperating companies not included in the original sample when exporting to the Union. EU Importers: * Impact: Importers of high tenacity yarns of polyesters from Fujian Billion and Zhejiang Sanwei will be subject to the new duty rate. * Action Required: Apply the new TARIC codes (A977) when importing the product concerned from these companies and pay the applicable anti-dumping duty.

Key Entities Referenced

European Union: A political and economic union of member states located primarily in Europe. Peoples Republic of China: Country of origin for the high tenacity yarns of polyesters subject to anti-dumping measures. European Parliament: One of the legislative branches of the European Union. Council of the European Union: A legislative body of the European Union, comprising government ministers from each member state. Commission Implementing Regulation EU 2017/325: Commission Implementing Regulation imposing a definitive anti dumping duty on imports of high tenacity yarns of polyesters originating in the Peoples Republic of China Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd.: One of the companies applying for new exporting producer treatment (NEPT). Zhejiang Sanwei Material Technology Co., Ltd.: One of the companies applying for new exporting producer treatment (NEPT). Ursula VON DER LEYEN: The President of the European Commission.
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24.6.2022 EN Official Journal of the European Union L 167/55 COMMISSION IMPLEMENTING REGULATION (EU) 2022/977 of 22 June 2022 accepting two requests for new exporting producer treatment with regard to the definitive anti- dumping measures imposed 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) of Regulation (EU) 2016/1036 of the European Parliament and of the Council and amending Commission Implementing Regulation (EU) 2017/325 THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) 2016/1036 of the European Parliament and the Council of 8 June 2016on protection against dumped imports from countries not members of the European Union(1)(the ‘basic Regulation’), Having regard to Commission Implementing Regulation (EU) 2017/325 of 24 February 2017imposing a definitive anti- dumping duty on imports of high tenacity yarns of polyesters originating in the People’s Republic of China(2), and, in particular, Article 2 thereof, Whereas, A. MEASURES IN FORCE (1) On 29 November 2010, the Council imposed a definitive anti-dumping duty on imports of high tenacity yarns of polyesters (‘the product concerned’) originating in the People’s Republic of China (the PRC) by Council Implementing Regulation (EU) No 1105/2010(3)(‘the original Regulation’). (2) On 26 February 2017, following an expiry review pursuant to Article 11(2) of the basic Regulation, the Commission extended the measures of the original Regulation for another 5 years by Implementing Regulation (EU) 2017/325. (3) In the investigation resulting in the imposition of anti-dumping duties (‘original investigation’), sampling was applied for investigating the exporting producers in the PRC in accordance with Article 17 of the basic Regulation. The cooperating exporting producers not included in the sample are listed in the Annex to Implementing Regulation (EU) 2017/325. (4) The Commission imposed individual anti-dumping duty rates ranging from 0 % to 9,8 % on imports of the product concerned for the sampled exporting producers from PRC. For the cooperating exporting producers that were not included in the sample, a duty rate of 5,3 % was imposed. (5) Pursuant to Article 4 of the original Regulation, the Commission may amend the annex to that Regulation, by granting a new exporting producer the duty rate applicable to the cooperating companies not included in the sample, where any new exporting producer in the PRC provides sufficient evidence to the Commission that: (a) it did not export to the Union the product concerned during the period of investigation on which the measures are based, that is from 1 July 2008to 30 June 2009(‘the original investigation period’) (‘first NEPT condition’); (b) it is not related to any of the exporters or producers in the PRC which are subject to the anti-dumping measures imposed by the original Regulation (‘second NEPT condition’); and (c) it has actually exported to the Union the product concerned after the end of the original investigation period or has entered into an irrevocable contractual obligation to export a significant quantity to the Union (‘third NEPT condition’). (1) OJ L 176, 30.6.2016, p. 21. (2) OJ L 49, 25.2.2017, p. 6. (3) OJ L 315, 1.12.2010, p. 1.L 167/56 EN Official Journal of the European Union 24.6.2022 B. REQUESTS FOR NEW EXPORTING PRODUCER TREATMENT (6) The companies Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. and Zhejiang Sanwei Material Technology Co., Ltd. (the ‘applicants’) submitted a request to the Commission to be granted new exporting producer treatment (‘NEPT’) The applicants claimed that they met all three conditions set out in Article 4 of the original Regulation (‘the NEPT conditions’). (7) In order to determine whether the applicants fulfilled the conditions for being granted NEPT, the Commission first sent a questionnaire to the applicants requesting evidence showing that it met the NEPT conditions. (8) Following the analysis of the questionnaire replies, the Commission requested further information and supporting evidence, which was submitted by the applicants. (9) The Commission sought to verify all information it deemed necessary for the purpose of determining whether the applicants met the NEPT conditions. To this end, the Commission analysed the evidence submitted by the applicants in its questionnaire reply, consulting various online databases including Orbis(4) and cross-checking company information against publicly available information on the internet. In parallel, the Commission also informed the Union industry about the applicants’ request and invited it to provide any comments if deemed necessary. The Union industry did not submit comments with regard to the applicants’ compliance with the NEPT conditions. C. ANALYSIS OF THE REQUESTS Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. (‘Billion’) (10) With regard to the first NEPT condition, during the original investigation period Billion had no industrial yarn production capacity and thus did not export to the Union. Billion invested in such production capacity as from 2019(5). Therefore, and in the absence of any evidence to the contrary, the applicant fulfils this condition. (11) With regard to the second NEPT condition, the Commission established that Billion is not related to any of the Chinese exporting producers subject to the original anti-dumping measures. Moreover, the Commission examined Billion’s shareholders and none of them are subject to the anti-dumping measures imposed by the original Regulation. Therefore, the applicant fulfils this condition. (12) With regard to the third NEPT condition, the Commission established that the applicant exported to the Union in 2021, therefore after the original investigation period. Billion submitted invoices, a packing list, a bill of lading and a receipt of payment for an order placed in 2021 by companies located in Belgium and the Netherlands. Therefore, Billion fulfils this condition. (13) Accordingly, Billion fulfils all three conditions to be granted NEPT and the request should be accepted. Consequently, the applicant should be subject to an anti-dumping duty for cooperating companies not included in the sample of the original investigation. Zhejiang Sanwei Material Technology Co., Ltd. (‘Sanwei’) (14) With regard to the first NEPT condition, the Commission established that the applicant indeed did not export to the Union during the original investigation period as Sanwei was founded in October 2017. Therefore, and in the absence of any evidence to the contrary, the applicant fulfils this condition. (15) With regard to the second NEPT condition, the Commission established that Sanwei is not related to any of the Chinese exporting producers which are subject to the original anti-dumping measures. Moreover, the Commission examined Sanwei’s shareholders and none of them are subject to the anti-dumping measures imposed by the original Regulation. Therefore, the applicant fulfils this condition. (4) Orbis is a global data provider of corporate information covering more than 220 million companies across the globe. It mainly provides standardised information on private companies and corporate structures. (5) https://www.oerlikon.com› ecoma › files › 2020-07_OBA_Billion_IDY_en.pdf.24.6.2022 EN Official Journal of the European Union L 167/57 (16) With regard to the third NEPT condition, the Commission established that the applicant exported to the Union in 2021, after the original investigation period. Sanwei submitted invoices, a packing list, a bill of lading and a receipt of payment for an order placed in 2021 by a German company. Therefore, Sanwei fulfils this condition. (17) Accordingly, Sanwei fulfils all three conditions to be granted NEPT and the request should be accepted. Consequently, the applicant should be subject to an anti-dumping duty for cooperating companies not included in the sample of the original investigation. D. DISCLOSURE (18) The applicants and the Union industry were informed of the essential facts and considerations based on which it was considered appropriate to grant the anti-dumping duty rate applicable to the cooperating companies not included in the sample of the original investigation to Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. and Zhejiang Sanwei Material Technology Co., Ltd. (19) The parties were granted the possibility to submit comments. No comments were received. (20) The Regulation is in accordance with the opinion of the Committee established by Article 15(1) of Regulation (EU) 2016/1036. HAS ADOPTED THIS REGULATION: Article 1 The following companies shall be added to the list of exporting producers from the People’s Republic of China in the Annex to Implementing Regulation (EU) 2017/325: Company TARIC additional code Fujian Billion Polymerization Fiber Technology Industrial Co., Ltd. A977 Zhejiang Sanwei Material Technology Co., Ltd. A977 Article 2 This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 22 June 2022. For the Commission The President Ursula VON DER LEYEN

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