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98 EN Official Journal of the European Communities C 233/25

Notice of initiation of anti-subsidy proceedings concerning imports of polypropylene binder or
baler twine originating in Saudi Arabia

(98/C 233/08)

The Commission has received a complaint pursuant to baler twine. They are alleged to be either contingent
Article 11 of Council Regulation (EC) No 2026/97Ø(Î), upon export performance or limited to certain enter-
alleging that imports of polypropylene binder or baler prises/industries. The subsidies are therefore specific and
twine originating in Saudi Arabia are being subsidised countervailable.
and are thereby causing material injury to the
Community industry.
4. Allegation of injury

1. Complaint The complainants allege and have provided evidence that
imports from Saudi Arabia have increased significantly in
absolute terms and in terms of market share.
The complaint was lodged on 12 June 1998 by Eurocord
on behalf of producers allegedly representing a major
proportion of the Community production of poly- It is further alleged that the volume and prices of the
propylene binder or baler twine. imported products have, among other consequences, had
a negative impact on the quantities sold, market share
and the prices charged by the Community producers,
resulting in substantial adverse effects on the financial
2. Product situation of the Community industry.

The product allegedly being subsidised is polypropylene 5. Procedure for determination of subsidy and injury
binder or baler twine, usually called agricultural twine.
These twines are used in the agricultural sector, notably
for binding bundles to be picked up by automatic balers Having determined, after consulting the Advisory
or similar machines. The product concerned is currently Committee, that the complaint has been lodged by or on
classifiable under CN code ex 5607Ø41Ø00. This CN code behalf of the Community industry and that there is
is only given for information and has no binding effect sufficient evidence to justify the initiation of proceedings,
on the classification of the product. the Commission has commenced an investigation
pursuant to Article 10 of Regulation (EC) No 2026/97.

3. Allegation of subsidisation (a) Questionnaires

In order to obtain the information it deems necessary
It has been alleged that Saudi Arabian producers of the for its investigation, the Commission will send ques-
product concerned have benefited from a number of tionnaires to the complainants, to known producers
subsidies granted by the Government of the Kingdom of in the Community, to the Saudi Arabian authorities,
Saudi Arabia. These subsidies are: import duty to known associations of producers and exporters in
exemption for machinery, interst free loans, tax Saudi Arabia and to any known representative
exemptions, specific incentives for exporters such as associations of importers in the Community.
reduced port fees, exemption from storage fees and
reduced air freight fees for the export of products to
Europe, Government provision of inputs for less than (b) Collection of information and holding of hearings
adequate remuneration and preferential utility rates.

All interested parties, provided that they can show
The subsidy is estimated to amount to 30-35Ø%. that they are likely to be affected by the results of
the investigation, are hereby invited to make their
views known in writing and to provide supporting
It is alleged that the subsidies concerned involve a evidence.
financial contribution from the Government of the
Kingdom of Saudi Arabia and confer a benefit to the Furthermore, the Commission may hear interested
recipient i.e. to exporters of polypropylene binder or parties, provided that they make a request in writing
and show that there are particular reasons why they
(Î)ÙOJ L 288, 21.10.1997, p. 1. should be heard.
C 233/26 EN Official Journal of the European Communities 25.7.98

6. Community interest Arabian authorities shall be deemed to have taken
place on the third day following its publication. This
In accordance with Article 31 of Regulation (EC) No time limit also applies to all other interested parties,
2026/97, and in order that an informed decision may be including the parties not named in the complaint,
reached as to whether, in the event that the allegations and it is consequently in the interest of these parties
of subsidy and injury are substantiated, the adoption of to contact the Commission without delay.
anti-subsidy measures would be in the Community
interest, the complainants, importers and their represen-
tative associations and representative users’ organisations (b) Commission address for correspondence:
may, within the general time limit specified in this notice, European Commission,
make themselves known and provide the Commission Directorate-General I — External Relations,
with information. It should be noted that any Attn. Mr A.ØJ. Stewart,
information submitted pursuant to this Article will only Directorate E,
be taken into account if supported by factual evidence at Rue de la Loi/Wetstraat 200,
the time of submission. B-1049 Brussels;
Fax (32-2) 295Ø65Ø05,
7. Time limits Telex COMEU B 21877.

(a) Time limit
8. Non-cooperation
Interested parties, if their representations are to be
taken into account during the investigation, must In cases in which any interested party refuses access to,
make themselves known, present their views in or otherwise does not provide necessary information
writing and submit information within 37 days from within the time limits, or significantly impedes the inves-
the date of transmission of this notice to the Saudi tigation, provisional or final findings, affirmative or
Arabian authorities. Interested parties may also apply negative, may be made in accordance with Article 28 of
to be heard by the Commission within the same time Regulation (EC) No 2026/97, on the basis of the facts
limit. The transmission of this notice to the Saudi available.