Commission Implementing Regulation (EU) 2026/734 of 26 March 2026 imposing a provisional anti-dumping duty on imports of yarns of polyamide originating in the People’s Republic of China

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	2026/734	27.3.2026

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 of the Council of 8 June 2016 on protection against dumped imports from countries not members of the European Union [^ntr1-L_202600734EN.000101-E0001] (‘the basic Regulation’), and in particular Article 7 thereof,

After consulting the Member States,

Whereas:

1. PROCEDURE

1.1.   Initiation

• (1) On 29 July 2025, the European Commission (‘the Commission’) initiated an anti-dumping investigation with regard to imports of yarns of polyamide originating in the People’s Republic of China (‘PRC’ or ‘the country concerned’) on the basis of Article 5 of the basic Regulation. It published a Notice of Initiation in the Official Journal of the European Union [^ntr2-L_202600734EN.000101-E0002] (‘the Notice of Initiation’).

• (2) The Commission initiated the investigation following a complaint lodged on 16 June 2025 by the Ad Hoc Coalition of European Producers of Yarns of Polyamide (‘the complainants’ or ‘the Coalition’). The complaint was made on behalf of the Union industry of yarns of polyamide in the sense of Article 5(4) of the basic Regulation. The complaint contained evidence of dumping and of resulting material injury that was sufficient to justify the initiation of the investigation.

1.2.   Registration

• (3) The Commission made imports of the product concerned subject to registration by Commission Implementing Regulation (EU) 2025/1984 [^ntr3-L_202600734EN.000101-E0003] (‘the registration Regulation’).

1.3.   Interested parties

• (4) In the Notice of Initiation, the Commission invited interested parties to contact it in order to participate in the investigation. In addition, the Commission specifically informed the complainants, other known Union producers, the known exporting producers and the Chinese authorities, known importers, suppliers and users, traders, as well as associations known to be concerned about the initiation of the investigation and invited them to participate.

• (5) Interested parties had an opportunity to comment on the initiation of the investigation and to request a hearing with the Commission and/or the Hearing Officer in trade proceedings.

1.4.   Comments on initiation

• (6) The Commission received comments on initiation from two interested parties: one of the users of the product under investigation (Spitfil) and the association representing the European producers of fibres and yarns manufactured from organic polymers (CIRFS).

• (7) In its comments on initiation [^ntr4-L_202600734EN.000101-E0004] Spitfil made a general observation that certain types of polyamide yarns imported from China, used exclusively for split warping processes for warp-knitted fabrics, are not produced in the Union. The company followed later with the formal request for the product scope exclusion as described in Section 2.4 below.

• (8) CIRFS in its comments on initiation [^ntr5-L_202600734EN.000101-E0005] supported the evidence submitted in the complaint with regard to the material injury, threatening the very existence of the Union’s polyamide yarn manufacturing sector, caused by the low-priced and allegedly dumped imports from China. The association urged the Commission to ensure that the level of potential anti-dumping measures would be sufficient to fully neutralise the dumping practices and to restore a level playing field.

1.5.   Sampling

• (9) In the Notice of Initiation, the Commission stated that it might sample the interested parties in accordance with Article 17 of the basic Regulation.

1.5.1.   Sampling of Union producers

• (10) In its Notice of Initiation, the Commission stated that it had provisionally selected a sample of Union producers. The Commission selected the sample on the basis of production and sales. This sample consisted of three Union producers and accounted for 44,4 % of the estimated total Union production and 37,4 % of estimated total Union sales quantity of the product under investigation. The Commission invited interested parties to comment on the provisional sample.

• (11) Following the provisional selection of the sample, the complainant proposed to reduce the sample to only two producers, whose production and sales volume would be still sufficiently representative. However, the Commission decided to uphold its provisional selection, taking into account also geographical spread of the sampled companies and a wider coverage of the produced product types. The sample is representative of the Union industry.

1.5.2.   Sampling of unrelated importers

• (12) To decide whether sampling is necessary and, if so, to select a sample, the Commission asked unrelated importers to provide the information specified in the Notice of Initiation.

• (13) No unrelated importers provided the requested information or agreed to be included in the sample. The Commission therefore did not select any sample of importers.

1.5.3.   Sampling of exporting producers

• (14) To decide whether sampling is necessary and, if so, to select a sample, the Commission asked all exporting producers in the PRC to provide the information specified in the Notice of Initiation. In addition, the Commission asked the Mission of the People’s Republic of China to the European Union to identify and/or contact other exporting producers, if any, that could be interested in participating in the investigation.

• (15) 18 exporting producers in the country concerned provided the requested information and agreed to be included in the sample. In accordance with Article 17(1) of the basic Regulation, the Commission selected a sample of two Chinese exporting producers on the basis of the largest representative volume of exports to the Union which could reasonably be investigated within the time available. In accordance with Article 17(2) of the basic Regulation, all known exporting producers concerned, and the authorities of the country concerned were consulted on the selection of the sample. No comments were submitted on the selection of the sample.

1.6.   Questionnaire replies and verification visits

• (16) The Commission sent a questionnaire concerning the existence of significant distortions in the PRC within the meaning of Article 2(6a)(b) of the basic Regulation to the Government of the People’s Republic of China (‘GOC’).

• (17) Furthermore, the complainant in the complaint provided sufficient prima facie evidence of raw material distortions in the PRC regarding the product concerned. Therefore, as announced in the Notice of Initiation, the investigation covered those raw material distortions to determine whether to apply the provisions of Article 7(2a) and 7(2b) of the basic Regulation with regard to the PRC. For this reason, the Commission sent additional questionnaires in this regard to the GOC.

• (18) The Commission also sent questionnaires to Union producers and Chinese exporting producers. The same questionnaires, as well as questionnaires for the Union importers and the Union users were made available online [^ntr6-L_202600734EN.000101-E0006] on the day of initiation.

• (19) The Commission sought and verified all the information deemed necessary for a provisional determination of dumping, resulting injury and Union interest. Verification visits pursuant to Article 16 of the basic Regulation were carried out at the premises of the following companies:

Union producers:

• — Aquafil SLO d.o.o. – Ljubljana, Slovenija; and two related traders: Aquafil S.p.A and Tessilquattro S.p.A. – (both) Arco, Italy,

• — Radici Yarn SpA – Villa d’Ogna, Italy,

• — Yarnea S.R.L. – Savinesti, Romania.

Exporting producers in the PRC:

• — Eversun Holding (Eversun Group):

• — Fujian Eversun Jinjiang Co., Ltd.,

• — Fujian Jingfeng Technology Co,. Ltd.,

• — Fujian Xinchuang Nylon Industrial Co., Ltd.,

• — Fujian Jinyi High Performance Material Co., Ltd.,

• — two related traders Fujian INylon E-commerce Co., Ltd., Hong Kong Jinjiang Group Co. Ltd.; Fuzhou City, Fujian Provice, PRC,

• — Highsun Holding (Highsun Group):

• — Fujian Highsun Synthetic Fiber, Technology Co., Ltd., Fuzhou Liyuan Polyamide Industry Co., Ltd., Fujian Liheng Polyamide Industry Co., Ltd.; Fuzhou City, Fujian Province, PRC,

• — Xinhui Dehua Nylon Chips Co., Ltd ; Jiangmen City, Guandong Province, PRC,

• — Nanchong Meihua Nylon Co., Ltd., Nanchong, PRC,

• — related trader Xinhui Meida Nylon Co., Ltd; Hong Kong.

1.7.   Investigation period and period considered

• (20) The investigation of dumping and injury covered the period from 1 July 2024 to 30 June 2025 (‘the investigation period’). The examination of trends relevant for the assessment of injury covered the period from 1 January 2022 to the end of the investigation period (‘the period considered’).

2. PRODUCT UNDER INVESTIGATION, PRODUCT CONCERNED AND LIKE PRODUCT

2.1.   Product under investigation

• (21) The product subject to this investigation is synthetic continuous filament yarns of aliphatic polyamides, not put up for retail sale, including synthetic monofilament of less than 67 decitex. The product under investigation includes all variants of yarns of nylon or other aliphatic polyamides, whether textured measuring not more than 50 tex per single yarn or not textured, single, double, multiple (folded) or cabled, twisted or untwisted (‘the product under investigation’).

• (22) High tenacity yarn of polyamide falling under CN code 5402 19 00 does not fall within the scope of the product under investigation.

• (23) Yarns of polyamide are widely used across various industries due to their versatility and high-performance properties. This includes:

• — various types of apparel, including outwear, sportswear, leggings, swimwear, lingerie, socks, and accessories for apparel applications like elastic bands, ribbons,

• — home furnishing, including curtains, draperies, beddings, and decorative fabrics,

• — medical applications such as bandages, orthopaedics and medical compressive stockings,

• — some technical applications such as ropes and automotive/transport belts.

2.2.   Product concerned

• (24) The product concerned is the product under investigation originating in the PRC, currently falling under CN codes 5402 31 00 , 5402 45 00 , 5402 51 00 and 5402 61 00 (‘the product concerned’).

2.3.   Like product

• (25) The investigation showed that the following products have the same basic physical chemical and technical characteristics as well as the same basic uses:

• — the product concerned when exported to the Union,

• — the product under investigation produced and sold on the domestic market of the PRC, and

• — the product under investigation produced and sold in the Union by the Union industry.

• (26) The Commission decided at this stage that those products are therefore like products within the meaning of Article 1(4) of the basic Regulation.

2.4.   Claims regarding product scope

• (27) One of the users of the product under investigation, Spitfil, requested exclusion from the product scope of so-called ‘mother yarns of polyamide’, which are used for production of the monofilament yarns, claiming that mother yarns are not produced in the Union. The user repeated its request in an additional submission send well after the deadline for the comments as the latter was provided by Section 2 of the Notice of Initiation.

• (28) The Commission established that mother yarn is not a finished product, but an intermediate yarn to be further processed to produce monofilament yarn of polyamide. Monofilament yarn produced from mother yarn has the same physical, chemical and technical characteristics as monofilament yarn produced by the Union industry, even if obtained through a different production method. Both product types are interchangeable and used in the same downstream applications, i.e. the warp knitting industry. Therefore, the Commission provisionally rejected the above product scope exclusion request. With regards to the second late submission of the company, it will be addressed after provisional disclosure.

3. DUMPING

3.1.   Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation

• (29) In view of the sufficient evidence available at the initiation of the investigation pointing to the existence of significant distortions within the meaning of point (b) of Article 2(6a) of the basic Regulation with regard to the PRC, the Commission considered it appropriate to initiate the investigation with regard to the exporting producers from this country having regard to Article 2(6a) of the basic Regulation.

• (30) Consequently, in order to collect the necessary data for the eventual application of Article 2(6a) of the basic Regulation, in the Notice of Initiation the Commission invited all exporting producers in the PRC to provide information regarding the inputs used for producing the yarns of polyamide. 11 exporting producers submitted the relevant information.

• (31) In order to obtain information, it deemed necessary for its investigation with regard to the alleged significant distortions, the Commission sent a questionnaire to the Government of China (‘GOC’). In addition, in point 5.3.2 of the Notice of Initiation, the Commission invited all interested parties to make their views known, submit information and provide supporting evidence regarding the application of Article 2(6a) of the basic Regulation within 37 days of the date of publication of the Notice of Initiation in the Official Journal of the European Union. No questionnaire reply was received from the GOC and no submission on the application of Article 2(6a) of the basic Regulation was received within the deadline from any party. Subsequently, the Commission informed the GOC that it would use facts available within the meaning of Article 18 of the basic Regulation for the determination of the existence of the significant distortions in the PRC.

• (32) In the Notice of Initiation, the Commission also specified that, in view of the evidence available, it may need to select an appropriate representative country pursuant to Article 2(6a)(a) of the basic Regulation for the purpose of determining the normal value based on undistorted prices or benchmarks.

• (33) On 10 October 2025, the Commission informed by a note (‘the First Note’) interested parties on the relevant sources it intended to use for the determination of the normal value. In that note, the Commission provided a list of factors of production such as raw materials, labour and energy used in the production of the yarns of polyamide. In addition, based on the criteria guiding the choice of undistorted prices or benchmarks, the Commission identified Türkiye as a possibly appropriate representative country. The Commission received comments on the First Note as mentioned in Sections 3.2.4 and 3.2.5 below.

• (34) On 13 January 2026, the Commission informed by a second note (‘the Second Note’) interested parties on the relevant sources it intended to use for the determination of the normal value, with Türkiye as the representative country. It also informed interested parties that it would establish selling, general and administrative costs (‘SG & A’) and profits based on available information for SASA Polyester Sanayi S.A, a producer of polyester yarns in Türkiye. The Commission received comments to the Second Note as mentioned in Sections 3.2.4 and 3.2.5 below.

• (35) After having analysed the comments and information received, the Commission concluded that Türkiye was an appropriate representative country from which undistorted prices and costs would be sourced for the determination of the normal value. When no representative import prices were available for a given factor of production, the Commission resorted to an appropriate international benchmark. The underlying reasons for the Commission’s approach are developed in detail in Section 3.2.4 below.

3.2.   Normal value

• (36) According to Article 2(1) of the basic Regulation, ‘the normal value shall normally be based on the prices paid or payable, in the ordinary course of trade, by independent customers in the exporting country’.

• (37) However, according to Article 2(6a)(a) of the basic Regulation, ‘in case it is determined […] that it is not appropriate to use domestic prices and costs in the exporting country due to the existence in that country of significant distortions within the meaning of point (b), the normal value shall be constructed exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks’, and ‘shall include an undistorted and reasonable amount of administrative, selling and general costs and for profits’ (‘administrative, selling and general costs’ is referred to hereafter as ‘SG & A’).

• (38) As further explained below, the Commission concluded in the present investigation that, based on the evidence available, and in view of the lack of cooperation of the GOC and the exporting producers, the application of Article 2(6a) of the basic Regulation was appropriate.

3.2.1.   Existence of significant distortions

• (39) In recent investigations concerning the chemical sector in the PRC [^ntr7-L_202600734EN.000101-E0007], the Commission found that significant distortions in the sense of Article 2(6a)(b) of the basic Regulation were present.

• (40) In those investigations, the Commission found that there is substantial government intervention in the PRC resulting in a distortion of the effective allocation of resources in line with market principles [^ntr8-L_202600734EN.000101-E0008]. In particular, the Commission concluded that in the chemical sector not only does a substantial degree of ownership by the GOC persist in the sense of Article 2(6a)(b), first indent of the basic Regulation [^ntr9-L_202600734EN.000101-E0009], but the GOC is also in a position to interfere with prices and costs through State presence in firms in the sense of Article 2(6a)(b), second indent of the basic Regulation [^ntr10-L_202600734EN.000101-E0010]. The Commission further found that the State’s presence and intervention in the financial markets, as well as in the provision of raw materials and inputs have an additional distorting effect on the market. Indeed, overall, the system of planning in the PRC results in resources being concentrated in sectors designated as strategic or otherwise politically important by the GOC, rather than being allocated in line with market forces [^ntr11-L_202600734EN.000101-E0011]. Moreover, the Commission concluded that the Chinese bankruptcy and property laws do not work properly in the sense of Article 2(6a)(b), fourth indent of the basic Regulation, thus generating distortions in particular when maintaining insolvent firms afloat and when allocating land use rights in the PRC [^ntr12-L_202600734EN.000101-E0012]. In the same vein, the Commission found distortions of wage costs in the chemical sector in the sense of Article 2(6a)(b), fifth indent of the basic Regulation [^ntr13-L_202600734EN.000101-E0013], as well as distortions in the financial markets in the sense of Article 2(6a)(b), sixth indent of the basic Regulation, in particular concerning access to capital for corporate actors in the PRC [^ntr14-L_202600734EN.000101-E0014].

• (41) Like in previous investigations concerning the chemical sector in the PRC, the Commission examined in the present investigation whether it was appropriate or not to use domestic prices and costs in the PRC, due to the existence of significant distortions within the meaning of point (b) of Article 2(6a) of the basic Regulation. The Commission did so on the basis of the evidence available on the file, including the evidence contained in the complaint, and in the Commission Staff Working Document on Significant Distortions in the Economy of the People’s Republic of China for the Purposes of Trade Defence Investigations [^ntr15-L_202600734EN.000101-E0015] (‘Report’), which relies on publicly available sources. That analysis covered the examination of the substantial government interventions in the PRC’s economy in general, but also the specific market situation in the relevant sector including the product under investigation. The Commission further supplemented these evidentiary elements with its own research on the various criteria relevant to confirm the existence of significant distortions in the PRC as also found by its previous investigations in this respect.

• (42) The complaint alleged that significant distortions exist in the Chinese polyamide yarns sector. It referred to the Report and in particular to the PRC’s economic system being a ‘socialist market economy’ and the active role of the Chinese Communist Party (‘CCP’) in both the public and private sectors in the PRC [^ntr16-L_202600734EN.000101-E0016].

• (43) More specifically, the complaint pointed out that:

• — The Chinese polyamide yarns market is served by enterprises that operate under the ownership, control or policy supervision or guidance of the Chinese authorities. The largest polyamide yarns producers, such as Fujian Eversun Jinjiang Co., Ltd., Guangdong Hengshen Meida New Materials Co., Ltd., and Yiwu Huading Nylon Co., Ltd. comply with the policy objectives set out by the Chinese government. Additionally, several Chinese producers of polyamide yarns, including Shenma Industrial Co., Ltd. (Shenma Corporation), Sinopec Baling Petrochemical Company and Hubei Sanning Chemical Industry Co., Ltd. are State-owned entities (‘SOEs’) [^ntr17-L_202600734EN.000101-E0017].

• — Government intervention in the chemical industry, and in particular in the polyamide yarns industry, is exercised through the China Chemical Fibers Association (‘CCFA’), which implements the plans outlined by the Chinese government, and the Chinese authorities control and guide the polyamide yarns sector through the objectives of the CCFA [^ntr18-L_202600734EN.000101-E0018].

• — State presence in companies allows the State to interfere with respect to prices and costs. The largest privately owned Chinese producers of polyamide yarns have significant ties with local governments in China and with the CCP. For example, Fujian Eversun Jinjiang Co., Ltd. has multiple key company officials that are members of the CCP. The chairman of Hengshen holding group is a member of the CCP. Several high-ranking company members of Yiwu Huading Nylon Co., Ltd. are reported to be members of the CCP [^ntr19-L_202600734EN.000101-E0019].

• — Chinese public policies or measures discriminate in favour of domestic suppliers as resources are allocated to sectors designated as strategic or otherwise politically important by the government, rather than being allocated in line with influence free market forces. The polyamide yarns industry is intrinsically linked to the chemical industry, which is regarded as a key industry by the Chinese government. The following legal and regulatory instruments regulate the GOC’s strategy as regards the chemical industry, including the polyamide yarns industry [^ntr20-L_202600734EN.000101-E0020]:

• — The 2022 Guiding Opinions on the High-quality Development of Chemical Fibre Industry issued by the Ministry of Industry and Information Technology National Development and Reform Commission,

• — The Shandong province’s 14th Five-Year Plan (‘FYP’) on developing the chemical industry,

• — The Chongqing province’s 14th FYP on high quality development of manufacturing industry, which refers to the polyamide industry chain in particular.

• — Additionally, several raw materials required for the production of polyamide yarn are subject to market distortions in China. Chinese producers of caprolactam (‘CPL’), which is one of the key raw materials used to produce polyamide 6, benefit from large government incentives, which leads to unfairly low costs of production for polyamide yarn producers [^ntr21-L_202600734EN.000101-E0021]. Polyamide polymers (such as polyamide 6) are the main raw materials for the production of polyamide yarn. Several important planning documents by the Chinese government have designated the polyamide sector as an encouraged industry: the 2024 Catalogue for Guiding Industry Restructuring, the Jiangsu 14th FYP on the high-end development of chemical industry, the Fujian 14th FYP on developing a high-quality manufacturing industry [^ntr22-L_202600734EN.000101-E0022]. Finally, ammonium sulphate, which is a by-product of the production of CPL, which is in turn used for the production of polyamide 6. Chinese producers of ammonium sulphate benefit from various subsidy programmes [^ntr23-L_202600734EN.000101-E0023].

• — There is a lack of, a discriminatory application of or inadequate enforcement of bankruptcy, corporate or property laws in China and wage costs are being distorted. The Chinese government plays an important role in insolvency proceedings, which results in a distorted financial system in China. Additionally, all land in China is owned by the Chinese government, who decided unilaterally on the allocation of land [^ntr24-L_202600734EN.000101-E0024].

• — Polyamide yarns producers in China have access to finance granted by institutions that implement public policy objectives or are otherwise not acting independently from the State [^ntr25-L_202600734EN.000101-E0025].

• (44) In conclusion, the complaint took the position that prices or costs, including the costs of raw materials, energy and labour, are not the result of free market forces because they are affected by substantial government intervention within the meaning of Article 2(6a)(b) of the basic Regulation. On that basis, according to the complaint, it is not appropriate to use domestic prices and costs to establish normal value in this case.

• (45) The Commission examined whether it was appropriate or not to use domestic prices and costs in China, due to the existence of significant distortions within the meaning of point (b) of Article 2(6a) of the basic Regulation. That analysis covered the examination of the substantial government interventions in China’s economy in general, but also the specific market situation in the relevant sector including the product concerned.

• (46) In this regard, the Commission first assessed whether the polyamide yarns sector in the PRC is being served to a significant extent by enterprises which operate under the ownership, control or policy supervision or guidance of the Chinese authorities, within the meaning of the first indent of Article 2(6a)(b) of the basic Regulation. The sector of the product concerned is served by both private companies, such as Fujian Eversun Jinjiang Co. Ltd [^ntr26-L_202600734EN.000101-E0026], Highsun Holding Group [^ntr27-L_202600734EN.000101-E0027], Yiwu Huading Nylon Co. Ltd [^ntr28-L_202600734EN.000101-E0028] as well as by SOEs such as Shenma Industrial Co. Ltd [^ntr29-L_202600734EN.000101-E0029], Hubei Sanning Chemical Co. Ltd [^ntr30-L_202600734EN.000101-E0030] or Sinopec [^ntr31-L_202600734EN.000101-E0031]. The exact ratio of private versus State-owned producers in the polyamide yarns market could not be determined. However, the Commission found that several producers are directly controlled by the State. Examples include Shenma Industrial Co. Ltd [^ntr32-L_202600734EN.000101-E0032], an SOE ultimately controlled by the Henan Provincial Government State-owned Assets Supervision and Administration Commission [^ntr33-L_202600734EN.000101-E0033] and is the largest Chinese producer of Nylon 66 [^ntr34-L_202600734EN.000101-E0034], a polymer used to produce polyamide yarns. Another example is Hubei Sanning Chemical Industry Co. Ltd., which is ultimately controlled by Shanxi Provincial State-owned Assets Supervision and Administration Commission [^ntr35-L_202600734EN.000101-E0035]. Also, Sinopec is an SOE controlled by the State-owned Assets Supervision and Administration Commission of the State Council (‘SASAC’) [^ntr36-L_202600734EN.000101-E0036].

• (47) Moreover, CCP interventions into operational decision-making have become the norm, not only in SOEs but also in private companies [^ntr37-L_202600734EN.000101-E0037], with the CCP claiming leadership over virtually every aspect of the country’s economy. Indeed, the State’s influence by means of CCP structures within companies effectively results in economic operators being under the government’s control and policy supervision, given how far the State and Party structures have grown together in China.

• (48) The investigation found that the industry national association covering the chemical sector is the China Petroleum and Chemical Industry Federation (‘CPCIF’). The CPCIF adheres to the overall leadership of the CCP, carries out Party activities, and provides necessary conditions for the activities of party organisations [^ntr38-L_202600734EN.000101-E0038]. Moreover, the ‘registration and management authority of the Association is the Ministry of Civil Affairs’ [^ntr39-L_202600734EN.000101-E0039] and the conditions to be eligible as a representative of the CPCIF include to ‘adhere to the leadership of the CCP, support socialism with Chinese characteristics, resolutely implement the Party’s line, principles, and policies, and possess good political qualities’ [^ntr40-L_202600734EN.000101-E0040].

• (49) Eversun Holding Group Co. Ltd, which is the mother company of Fujian Eversun Jinjiang Co. Ltd, is a member of CPCIF [^ntr41-L_202600734EN.000101-E0041] and is one of its directors. Additionally, some entities controlled by Sinopec are also members of CPCIF [^ntr42-L_202600734EN.000101-E0042].

• (50) More specifically, the investigation found that the industry national association representing the producers of polyamide yarns is the CCFA. The CCFA adheres to the overall leadership of the CCP, carries out Party activities, and provides necessary conditions for the activities of party organisations [^ntr43-L_202600734EN.000101-E0043]. Moreover, the ‘registration and management authority of the Association is the Ministry of Civil Affairs’ [^ntr44-L_202600734EN.000101-E0044] and the conditions to be eligible as a representative of the CCFA include to ‘adhere to the leadership of the CCP, support socialism with Chinese characteristics, resolutely implement the Party’s line, principles, and policies, and possess good political qualities’ [^ntr45-L_202600734EN.000101-E0045].

• (51) Fujian Eversun Jinjiang Co., Ltd, Fujian Highsun Synthetic Fiber (which is held by Highsun Holding Group), Yiwu Huading Nylon Co., Ltd, Sinopec and Shenma Industrial Co., Ltd are all members of the CCFA [^ntr46-L_202600734EN.000101-E0046].

• (52) Both public and privately owned enterprises in the chemical sector are subject to policy supervision and guidance. The latest Chinese policy documents concerning the chemical and petrochemical sector confirm the continued importance which the GOC attributes to the sector, including the intention to intervene in the sector to shape it in line with the government policies. This is exemplified by the Guiding Catalogue for Industrial Structure Adjustment where polyamides are listed as an industry sector encouraged by the GOC [^ntr47-L_202600734EN.000101-E0047]. Also, adipic acid, an input used to produce polyamide yarns, is listed as an encouraged sector both in the Guiding Catalogue for Industrial Structural Adjustment [^ntr48-L_202600734EN.000101-E0048] and in the Catalogue of Encouraged Industries in the Western Regions [^ntr49-L_202600734EN.000101-E0049]. As regards caprolactam, another input to produce polyamide yarns, the GOC has a restrictive policy towards the production units with a production capacity of less than 100 000 tonnes per year [^ntr50-L_202600734EN.000101-E0050].

• (53) Furthermore, according to the 14th FYP on Economic and Social Development and 2035 Perspectives, the GOC intends to ‘accelerate the transformation and upgrading of key industries such as chemicals’ [^ntr51-L_202600734EN.000101-E0051] .

• (54) Additionally, the Guiding Opinion on Promoting the High-Quality Development of the Petrochemical and Chemical Industries during the 14th FYP [^ntr52-L_202600734EN.000101-E0052] (‘the Guiding Opinion’) also stipulates that the GOC will ‘accelerate the transformation and upgrading of traditional industries, vigorously develop new chemical materials and fine chemicals, […]and foster China’s transition from a large petrochemical and chemical country into a strong petrochemical and chemical power. […] By 2025, […] [t]he production concentration of bulk chemical products will be further improved, and the capacity utilization rate will reach more than 80 %; the supply security of new chemical materials will reach more than 75 %’ [^ntr53-L_202600734EN.000101-E0053] . Also, the GOC shall ‘[a]ccelerate the development of high-end polyolefins, electronic chemicals, industrial specialty gases, high-performance rubber and plastics, high-performance fibers’ and, regarding the polyamide yarns downstream industries, the GOC intends to ‘expand the variety and specifications of materials such as […] polyurethanes, and polyamides’ [^ntr54-L_202600734EN.000101-E0054] . In addition, the GOC shall ‘[p]romote industrial structure adjustment: strengthen specific measures and scientifically regulate the scale of the industry’ [^ntr55-L_202600734EN.000101-E0055] .

• (55) More specifically, the Guiding Opinion on the High Quality Development of the Chemical Fibers Industry [^ntr56-L_202600734EN.000101-E0056] stipulates that the GOC shall ‘[p]romote the development of a high-performance fiber and composite material innovation platform […] aim[ing] to establish a comprehensive industry chain encompassing basic chemical raw materials, high-performance fibers/high-performance polymers, composite materials and product molding and processing, product testing and evaluation, and product application’ [^ntr57-L_202600734EN.000101-E0057].

• (56) Similar examples of the intention of the Chinese authorities to supervise and guide the developments of the polyamide yarns sector can be found at the provincial level, such as in the Shandong 14th FYP on the Development of the Chemical Industry [^ntr58-L_202600734EN.000101-E0058] seeking to ‘[c]omprehensively promote the upgrading of industrial foundation and modernization of industrial chain, accelerate the withdrawal of backward and inefficient production capacity, and promote the development of chemical products in the direction of functionalization, refinement and differentiation [and to]guide enterprises to merge and reorganize, optimize resource allocation and industrial chain structure, and improve production efficiency and profitability’ [^ntr59-L_202600734EN.000101-E0059].

• (57) This Shandong 14th FYP also specifically covers the polyamide yarns upstream and downstream industry sectors and requires ‘to highlight the leading role of chemical parks and leading enterprises, and accelerate the development of the entire industrial chain from basic chemical raw materials to high-end chemical new materials […] [and] focus on developing high-end polyolefins, polyurethanes, and polyamides, as well as high-tech, high-value-added new materials products’ [^ntr60-L_202600734EN.000101-E0060] .

• (58) Another example of the intention of the Chinese authorities to supervise and guide the developments of the polyamide yarns sector at the provincial level can be found in the Henan 14th FYP on Developing Strategic and Emerging Industries as well as Industries of the Future [^ntr61-L_202600734EN.000101-E0061] seeking to ‘[a]ccelerate the development of the nylon new materials industry. Based on a comprehensive assessment of resource and environmental capacity, rationally expand the production of upstream raw materials such as adipic acid, caprolactam, and nylon 66 polymer’ [^ntr62-L_202600734EN.000101-E0062].

• (59) Similarly, the Chongqing 14th FYP on the High Quality Development of the Manufacturing Industry seeks ‘on the basis of local adipic acid production capacity advantages, [to] strengthen the planning and construction of products such as […] nylon 66 salt (hexamethylenediamine adipic acid salt), and nylon 66 (polyhexamethylene adipamide), and actively attract and cultivate enterprises in the fields of long-chain nylon and high-temperature resistant nylon to build a polyamide industry chain’ [^ntr63-L_202600734EN.000101-E0063].

• (60) As to the GOC being in a position to interfere with prices and costs through State presence in firms in the sense of Article 2(6a)(b), second indent of the basic Regulation, the Commission found that Fujian Eversun Jinjiang Co., Ltd.’s holding company Eversun Corp. ‘has attached great importance to Party building since its establishment. Since its inception, the company’s party committee has played a leading role and continuously promoted the company’s development’ [^ntr64-L_202600734EN.000101-E0064] . Additionally, the chairman of Eversun Corp. is also a member of the CCP [^ntr65-L_202600734EN.000101-E0065].

• (61) Furthermore, Highsun Holding Group ‘promotes the deep integration of Party building work with the Group’s development’ [^ntr66-L_202600734EN.000101-E0066] . Additionally, the general manager of Highsun Holding Group is a member of the CCP [^ntr67-L_202600734EN.000101-E0067].

• (62) The chairman of Shenma Industrial Co., Ltd. also serves as the secretary of the Party Committee [^ntr68-L_202600734EN.000101-E0068].

• (63) In 2020, Hubei Sanning Chemical Co., Ltd developed a plan to ‘further strengthen Party building work and strive to become a leading demonstration enterprise of the party […] at the provincial level. Further, the company has ‘written the Party building work into the articles of association, insisted on taking high-quality Party building as the “root” and “soul” leading the development of the enterprise’ [^ntr69-L_202600734EN.000101-E0069] . Also, the company’s deputy general manager serves as the secretary of the company’s Party committee [^ntr70-L_202600734EN.000101-E0070].

• (64) Similarly, Sinopec Group’s chairman of the board of directors is the secretary of the Party committee and several members of the board serve as deputy secretaries of the Party committee [^ntr71-L_202600734EN.000101-E0071]. Sinopec Group stated that it intends to ‘focus on the company's new mission and new tasks on the new journey, carry forward the party's self-revolutionary spirit, strengthen the Party’s leadership and Party building in an all-round and integrated manner, and systematically promote comprehensive and strict party governance, so as to provide a strong guarantee for writing a new chapter of China’s modern petrochemical industry’ [^ntr72-L_202600734EN.000101-E0072].

• (65) It was not possible to systematically establish the existence of personal connections between all of the Chinese polyamide yarns producers and the CCP. However, given that the product under investigation represents a subsector of the chemical sector, the Commission considered that the information established in the recent investigations concerning the chemical sector, as indicated in recital (40), is relevant also to the product under investigation.

• (66) Further, policies discriminating in favour of domestic producers or otherwise influencing the market in the sense of Article 2(6a)(b), third indent of the basic Regulation, are in place in the polyamide yarns sector. The Commission identified several documents demonstrating that the polyamide yarns industry benefits from the governmental guidance and intervention into the chemical sector, given that the polyamide yarns sector represents a subsector of the chemical sector. Furthermore, the Commission also found documents specifically addressing the polyamide sector.

• (67) The chemical industry is consistently regarded as a key industry by the GOC [^ntr73-L_202600734EN.000101-E0073]. This is confirmed in the numerous plans, directives and other documents focused on chemicals, which are issued at national, regional, and municipal level. Under the 14th FYP, the GOC earmarked the chemical industry for optimisation and upgrade [^ntr74-L_202600734EN.000101-E0074]. Similarly, the 14th FYP on Developing the Raw Materials Industry stipulates that the GOC will ‘Optimize the organizational structure: Make leading enterprises bigger and stronger. […] [S]upport enterprises to accelerate cross-regional and cross-ownership mergers and reorganizations, increase industrial concentration, and conduct international operations. In the chemical, petrochemical, steel, non-ferrous metals, building materials and other industries, cultivate a group of leading enterprises in the industrial chain with ecological dominance and core competitiveness’ [^ntr75-L_202600734EN.000101-E0075] .

• (68) More specifically, the Changle District, located in Fuzhou Municipality (Fujian), has developed a chemical fiber industry cluster: ‘Faced with the competitive landscape of the national nylon industry, Changle District has fully implemented the “chain leader + chain cluster” development strategy. With leading enterprises such as Highsun Holding Group, Eversun Holding Group Co. Ltd, and Jinlun High Fiber driving the coordinated development of the upstream and downstream industrial chains, the district has continuously consolidated its advantages in the textile industry and formed the most complete textile industrial chain in the country, from petrochemical raw materials to chemical fibers’ [^ntr76-L_202600734EN.000101-E0076].

• (69) Furthermore, this development strategy results from various support schemes: ‘Changle's vigorous support for the clustered development of traditional manufacturing industry chains: In recent years, Changle District has implemented [projects] encouraging leading enterprises […] to accelerate the extension of their upstream and downstream industrial chains. Currently, there are 282 textile enterprises above designated size in the district, with a relatively complete industrial chain. The upstream covers the production of petrochemical raw materials, while the downstream covers to the warp knitting (lace) industry, forming a textile industry system integrating chemical fibers’ raw materials, chemical fibers, spinning, knitting, dyeing and finishing, and clothing. This year, Changle district focuses on “supporting leading enterprises, cultivating large clusters, and developing large industries,” using […] special actions as key initiatives to help Highsun Holding Group, Eversun Holding Group, […] achieve an output value of RMB 100 billion yuan’ [^ntr77-L_202600734EN.000101-E0077].

• (70) In sum, the GOC has measures in place to induce operators to comply with the public policy objectives of supporting encouraged industries, including the production of the product under investigation. Such measures impede market forces from operating freely.

• (71) The present investigation has not revealed any evidence that the discriminatory application or inadequate enforcement of bankruptcy and property laws in the chemical sector, according to Article 2(6a)(b), fourth indent of the basic Regulation would not affect the manufacturers of the product under investigation.

• (72) Additionally, in the cases where the bankruptcy law is implemented, proceedings lack transparency and result in discriminatory practices [^ntr78-L_202600734EN.000101-E0078].

• (73) Further, the product under investigation is also affected by the distortions of wage costs in the sense of Article 2(6a)(b), fifth indent of the basic Regulation, as referred to above in recital (40). Those distortions affect the sector both directly (when producing the product under investigation or the main inputs), as well as indirectly (when having access to inputs from companies subject to the same labour system in the PRC).

• (74) Moreover, no evidence was submitted in the present investigation demonstrating that the polyamide yarns sector is not affected by the government intervention in the financial system in the sense of Article 2(6a)(b), sixth indent of the basic Regulation. The abovementioned Guiding Opinion requiring to ‘improve supporting policies, strengthen the coordination between fiscal, financial, regional, investment, import and export […] policies with the industry policies [to] give full play to the national cooperation platform between industry and finance and [to] foster the connection between enterprises and banks’ [^ntr79-L_202600734EN.000101-E0079] also exemplifies this type of government intervention very well.

• (75) Furthermore, on the level of allocation of financial resources, with Several Measures to Further Promote the Development of Private Investment [^ntr80-L_202600734EN.000101-E0080], the GOC seeks to ‘increase central budget resources to support qualified private investment projects and to actively play a guiding and leading role.’ The GOC also intends to ‘make good use of new policy financial instruments [and] support a number of qualified private investment projects in important industries and key areas’ [^ntr81-L_202600734EN.000101-E0081].

• (76) Therefore, the substantial government intervention in the financial system leads to the market conditions being severely affected at all levels.

• (77) Finally, the Commission recalls that in order to produce the product under investigation, a number of inputs is needed. When the producers of the product under investigation purchase/contract these inputs, the prices they pay (and which are recorded as their costs) are clearly exposed to the same systemic distortions mentioned before. For instance, suppliers of inputs employ labour that is subject to the distortions. They may borrow money that is subject to the distortions on the financial sector/capital allocation. In addition, they are subject to the planning system that applies across all levels of government and sectors.

• (78) As a consequence, not only the domestic sales prices of the product under investigation are not appropriate for use within the meaning of Article 2(6a)(a) of the basic Regulation, but all the input costs (including raw materials, energy, land, financing, labour, etc.) are also affected because their price formation is affected by substantial government intervention, as described in Parts I and II of the Report. Indeed, the government interventions described in relation to the allocation of capital, land, labour, energy and raw materials are present throughout the PRC. This means, for instance, that an input that in itself was produced in the PRC by combining a range of factors of production is exposed to significant distortions. The same applies for the input to the input and so forth.

• (79) In sum, the evidence available showed that prices or costs of the product under investigation, including the costs of raw materials, land, energy and labour, are not the result of free market forces because they are affected by substantial government intervention within the meaning of Article 2(6a)(b) of the basic Regulation, as shown by the actual or potential impact of one or more of the relevant elements listed therein.

3.2.2.   Arguments raised by interested parties

• (80) The GOC did not comment or provide evidence supporting or rebutting the existing evidence on the case file, including the Report and the additional evidence provided by the complainant, on the existence of significant distortions and/or appropriateness of the application of Article 2(6a) of the basic Regulation in the case at hand.

• (81) At provisional stage, the Commission did not receive any comments concerning the significant distortions affecting the polyamide yarns industry from any of the Chinese exporting producers.

3.2.3.   Conclusion

• (82) In view of the above, the Commission concluded that it is not appropriate to use domestic prices and costs to establish normal value in this case. Consequently, the Commission proceeded to construct the normal value exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks, that is, in this case, on the basis of corresponding costs of production and sale in an appropriate representative country, in accordance with Article 2(6a)(a) of the basic Regulation, as described in the following section.

3.2.4.   Representative country

3.2.4.1.   General remarks

• (83) The choice of the representative country was based on the following criteria pursuant to Article 2(6a) of the basic Regulation:

• — A level of economic development similar to the PRC. For this purpose, the Commission used countries with a gross national income per capita similar to the PRC on the basis of the database of the World Bank [^ntr82-L_202600734EN.000101-E0082],

• — Production of the product under investigation in that country,

• — Existence of relevant readily available data in the representative country,

• — Where there is more than one possible representative country, preference was given, where appropriate, to the country with an adequate level of social and environmental protection.

• (84) As explained in recitals (33) to (34), the Commission issued two notes for the file on the sources for the determination of the normal value: the First Note on 10 October 2025 and the Second Note on 13 January 2026. These notes described the facts and evidence underlying the relevant criteria, and also addressed the comments received by the parties on these elements and on the relevant sources. In the Second Note, the Commission informed interested parties of its intention to use Türkiye as an appropriate representative country in the present case if the existence of significant distortions pursuant to Article 2(6a) of the basic Regulation would be confirmed.

3.2.4.2.   A level of economic development similar to the PRC

• (85) In the First Note, the Commission identified Argentina, Brazil, Colombia, Indonesia, Mexico, Thailand and Türkiye as countries with a similar level of economic development as the PRC according to the World Bank, i.e. they are all classified by the World Bank as ‘upper-middle income’ countries on a gross national income basis where production of the product under investigation was known to take place.

• (86) In the context of this criterion, comments on the Commission’s identification of Türkiye as a potentially suitable representative country were submitted by Eversun Group. Eversun Group alleged that Türkiye was not an appropriate representative country due to its high levels of inflation in comparison to Indonesia whose economy was larger and inflation rate more stable. Furthermore, Eversun Group identified an Indonesian company PT. Ever Shine Tex Tbk, which produced the product under investigation and for which the financial statements were readily available. Eversun Group requested the Commission to consider Indonesia as a suitable representative country.

• (87) In order to define which countries were at similar level of economic development as the exporting country in each case, the Commission used countries classified in the same income category by the World Bank. This database allowed the Commission to have a sufficient number of potentially suitable countries with a similar level of development to choose an appropriate representative country according to Article 2(6a)(a) of the basic Regulation. The Commission noted that the basic Regulation does not identify the existence of inflation as a relevant criterion for the choice of the representative country. The Commission also noted that the fact that the Indonesia’s economy was larger than the Turkish economy and therefore closer to the economy of China was not a factor in the selection of the appropriate representative country according to Article 2(6a)(a) of the basic Regulation. The relevant World Bank category was that of the upper-middle income countries, where China was classified. With regard to the claim on inflation rate in Türkiye, the Commission noted that Eversun did not submit any evidence that the inflation rendered the determination of benchmarks unreliable. Furthermore, the Commission also noted that the import prices, which were the basis for setting benchmarks for most factors of production, were based on cross-border transactions which were usually made in other currencies than that of the importing country and hence were unaffected by inflation. Furthermore, benchmarks would be converted to the currency of the country concerned, whereby the impact of inflation, which is often related to currency devaluation, would not be significant. Therefore, this claim was dismissed.

3.2.4.3.   Existence of relevant readily available data in the representative country

(a) The First Note

• (88) In the First Note, the Commission provided a list of factors of production such as raw materials, energy, and labour used in the production of yarns of polyamide. The Commission also noted that, with regard to the main raw materials, nylon 6 chips were the principal raw material used in the production of yarns of polyamide. Their consumption varied between [55 %–70 %] out of total materials consumed, in comparison to [20 %–35 %] of the consumption of caprolactam.

• (89) The Commission subsequently analysed the imports of the main factors of production into the seven potential representative countries, i.e. Argentina, Brazil, Colombia, Indonesia, Mexico, Thailand and Türkiye. With regard to Argentina, the Commission established that there was a low level of imports of caprolactam, nylon 6 chips and POY/FDY/HOY [^ntr83-L_202600734EN.000101-E0083] and DTY/ACY/ATY/TDY/TTY [^ntr84-L_202600734EN.000101-E0084] yarns. With regard to Brazil, Mexico and Thailand, the Commission noted that there was a low level of imports of caprolactam. With regard to Colombia, the Commission noted that the import volumes of nylon 6 chips, POY and DTY yarns to Colombia were insufficient and that the average import price of caprolactam was affected by the Chinese imports. With regard to Indonesia, the Commission established that the import price of nylon 6 chip, the main raw material, was affected by the Chinese imports.

• (90) Furthermore, the Commission investigated which financial data was readily available for the seven countries identified, i.e. Argentina, Brazil, Colombia, Indonesia, Mexico, Thailand and Türkiye, and noted that although there were producers of the yarns of polyamide in each of the potential representative countries, it could not identify any such company with readily available financial data for the determination of manufacturing overheads, SG & A and profit.

• (91) The Commission however identified SASA Polyester Sanayi A.Ş, a producer of polyester yarns, a product in the same general category and sector of the product under investigation, as a suitable company for the purpose of calculating the SG & A and profit. The Commission received comments from Eversun Group and from the complainants.

• (92) In reply to the First Note, Eversun Group submitted readily available financial information for an Indonesian producer of yarns of polyamide, PT Ever Shine Tex [^ntr85-L_202600734EN.000101-E0085]. The Commission noted that PT Ever Shine Tex was a manufacturer of nylon 6 filament yarns, nylon 6 textured and non-textured yarns and polyester fabrics.

• (93) The complainants mentioned its support for the choice of the SASA Polyester Sanayi A.Ş’s financial statements considering it a reasonable proxy as this Turkish producer produced non-textured and textured yarns of polyester, which were used for the textile sector. The complainants alleged that the manufacturing process was similar to the one of yarns of polyamide.

(b) The Second Note

• (94) In the Second Note, the Commission analysed the financial data of PT Ever Shine Tex and found the company to be in principle suitable for the construction of the SG & A and profit. However, with regard to the suitability of Indonesia as a representative country, the Commission identified important blocking elements, set out in recital (95) below, which disqualified Indonesia from the being selected as a suitable representative country.

• (95) With regard to nylon 6 chips, the Commission noted that sufficient quantities were imported to Indonesia, of which 48 % originated in China. The Commission observed that the average Chinese import price was 16 % lower than the average import price from the rest of the world. The Commission concluded that the import price of nylon 6 chip from the ‘rest of the world’ was likely to be affected by the imports from China and was therefore unsuitable to be applied as a benchmark in compliance with Article 2(6)(a) of the basic Regulation. Furthermore, the Commission analysed the import prices of the newly added factors of production (set out in recital (126)) to Indonesia and noted that 87 % of PTA was imported to Indonesia from China. The average Chinese import price was 9 % lower than the average import price from the ‘rest of the world’. The Commission subsequently established that the import price of PTA from the ‘rest of the world’ to Indonesia was likely to be affected by the imports from China. The suitability of Indonesia as a representative country was rejected in the Second Note.

• (96) With regard to Türkiye, despite existence of several producers of the yarns of polyamide in Türkiye, none of them had readily available financial information or was profitable in the investigation period. The Commission therefore resorted to the analysis of Turkish companies with readily available financial information in the whole general category of the product under investigation with view to calculate the average of all profitable companies in the sector with reasonable profit and SG & A. The Commission established that the producers of man-made filaments, such as polyamide yarns, polyester yarns or acrylic yarns, were listed under the NACE 1310 ‘Preparation and spinning of textile fibres’. The Commission noted that the main difference between the production process of polyester, acrylic and polyamide yarns lied in the polymer used in the production process, whereas the essential production steps remained comparable. Under NACE 1310, the Commission identified twenty-six Turkish companies profitable in the investigation period. However, only one company in the NACE 1310, SASA Polyester Sanayi A.Ş, had readily available financial information. To consider the widest and most relevant whole general category of the product under investigation, the Commission also analysed whether there were Turkish companies with readily available financial information under NACE 1399 ‘Manufacture of other textile’ and 2016 ‘Manufacture of plastic in primary form’ but excluded these codes as either there were no profitable Turkish companies, or these companies manufactured incomparable products, such as textiles, garments or fabrics.

• (97) In the Second Note, the Commission confirmed that SASA Polyester Sanayi A.Ş remained an appropriate producer in the whole general category of the product under investigation for the purpose of calculating the SG & A and profit.

• (98) Eversun Group argued that the production process and cost structures of polyamide yarns and polyester yarns were distinct industries because polyamide yarn production relied on nylon chips (accounting for 55 %–70 % of total material consumption), and the polyester yarn’s main raw material was PTA. Eversun Group claimed that the procurement costs, processing complexity, and energy consumption of the two raw materials differed substantially, which in turn affected the profit margins.

• (99) With regard to the unsuitability of the benchmarks in Indonesia, Eversun Group alleged that the impact of raw material price fluctuation was negligible compared to the fundamental differences in profit margins between the polyamide and polyester yarn industries. Eversun Group requested the Commission to apply the financial data of Indonesia’s PT Ever Shine Tex as the valid basis for calculating the profit margin of the product under investigation, rather than SASA Polyester Sanayi A.Ş.

• (100) In addition to the arguments set out in recital (95), the Commission reiterated that the import price of nylon 6 chip, the main raw material, to Indonesia was distorted and this fact was not challenged by the interested parties. As Indonesia was found unsuitable as a representative country, the Commission could not apply the available financial information of PT Ever Shine Tex. The Commission maintained that the production process of yarns of polyester and polyamide are similar, as evidenced by the Union producers, and that SASA Polyester Sanayi A.Ş remained an appropriate producer in the whole general category of the product under investigation for the purpose of calculating the SG & A and profit. The argument was rejected.

3.2.4.4.   Level of social and environmental protection

• (101) Having established that Türkiye was the only available appropriate representative country, based on all of the above elements, there was no need to carry out an assessment of the level of social and environmental protection in accordance with the last sentence of Article 2(6a)(a) first indent of the basic Regulation.

3.2.4.5.   Conclusion

• (102) In view of the above analysis, Türkiye met the criteria laid down in Article 2(6a)(a), first indent of the basic Regulation in order to be considered as an appropriate representative country.

3.2.5.   Sources used to establish undistorted costs

• (103) In the First Note, the Commission listed the factors of production such as materials, energy and labour used in the production of the product under investigation by the exporting producers and invited the interested parties to comment and propose publicly available information on undistorted values for each of the factors of production mentioned in that Note.

• (104) The Commission received comments from Eversun Group, Highsun Group and the complainants.

3.2.5.1.   Caprolactam

• (105) With regard to the caprolactam benchmark, the Commission noted that Russian imports of caprolactam to the Union stopped in 2023 due to the sanction regime under Council Regulation (EU) No 833/2014 [^ntr86-L_202600734EN.000101-E0086], while, at the same time, the imports of Russian caprolactam to Türkiye increased significantly from 2023 onwards. The Commission informed in the First Note that 52 % of imports of caprolactam into Türkiye originated in Russia and that the average Russian import price of was only 4 % lower than the average price from the ‘rest of the world’’. The Commission concluded that the import price of caprolactam from the ‘rest of the world’ was likely to be affected by the imports from Russia.

• (106) The complainants expressed agreement with the Commission’s methodology and submitted additional evidence demonstrating the that Russian imports of caprolactam into Türkiye had significantly increased since 2022, and that the import prices were maintained at low levels, while the Union’s imports from Russia stopped entirely from 2023 onwards.

• (107) To establish an adequate and undistorted caprolactam benchmark, the Commission resorted to the average import price from all countries to all countries, excluding China and non-WTO countries, extracted from GTA. The Commission noted that certain transactions contained values in RMB with zero quantities reported. The Commission disregarded these transactions as they would artificially increase the value. The Commission established the average import price from all countries to all countries (excluding China and non-WTO countries) and added the weighted average import duties levied by twelve biggest importing countries covering 95,49 % of the worldwide imports, amounting to 4,69 %.

• (108) Eversun Group objected the Commission’s basis for the conclusion that import price of caprolactam from the ‘rest of the world’ was likely to be affected by the imports from Russia. Eversun Group alleged that the Commission assumed that as there was no significant difference between import price from Russia and the rest of the world (4 %), then the price of the rest of the world was entirely unreliable. Eversun Group requested the Commission to bring evidence to support the finding that the import price of caprolactam was not reliable.

• (109) In the Second Note, the Commission published the import statistics of caprolactam from Russia to Türkiye, extracted from GTA, and observed that in 2020 and 2021, there were no imports of Russian caprolactam to Türkiye. Between 2022 and 2023, the imports rose from 5 678 tonnes to 12 779 tonnes, while the average unit price decreased from 2,09 EUR/KG to 1,52 EUR/KG. In the investigation period, the imports decreased to 9 775 tonnes, and the average unit price also decreased to 1,48 EUR/KG. Furthermore, the Commission observed that the unit price of Russian caprolactam continued to decrease post-investigation period, with the unit price in 2025 at 1,28 EUR/KG. At the same time, the average import price from other countries increased. Therefore, on the basis of a dynamic volume and price-based analysis over time, and the dominant Russian import share of 52 %, the Commission concluded that import prices from other countries to Türkiye were affected by Russian imports. Thus, the claim of Eversun Group was rejected.

3.2.5.2.   Nylon chips (type 6, 6,6, 5,6, 5,10)

• (110) The complainants recalled that the product under investigation was produced from nylon 6,6, nylon 5,6, nylon 5,10 or nylon 11. The complainants submitted that the different types of polyamides had slightly different molecular structures and different cost. The complainants contended that the Commission should list other types of polyamide polymers used in the production of the product under investigation by either including other types of polyamide polymers individually in the list of factors of production, or by considering a broader category of ‘polyamide polymers’, encompassing nylon 6, nylon 6,6 and other relevant types (e.g. nylon 5,6).

• (111) The Commission observed that the HS structure in Türkiye did not distinguish between different types of nylon chips. The most detailed code in the Turkish nomenclature was ‘39.08 Polyamides in primary forms: 3908.10 – Polyamide-6, -11, -12, -6,6, -6,9, -6,10 or -6,12’ [^ntr87-L_202600734EN.000101-E0087]. Therefore, all types of polyamide chips were already encompassed in the benchmark. The Commission updated the title of the benchmark to reflect that all types of nylon chips contained in the benchmark.

• (112) Highsun Group submitted that the nylon chip benchmark values in the seven potential representative countries were higher than the reasonable Chinese market price of the nylon 6 chip, which Highsun Group used in the production of the product under investigation exported to the EU. Highsun Group further alleged that the raw data of nylon 6 chip published in the First Note included data for inputs unrelated to nylon 6 chip, such as nylon chip PA-9, PA-10, PA-11, PA-12, etc. Highsun Group requested the import data of such inputs to be excluded.

• (113) The Commission concluded in recital (82) that it was not appropriate to use Chinese domestic prices and costs to establish normal value in this case. Consequently, the Commission proceeded to construct the normal value exclusively on the basis of corresponding costs of production and sale in an appropriate representative country, in accordance with Article 2(6a)(a) of the basic Regulation. The argument on reasonableness of the Chinese domestic price was therefore rejected. The Commission further noted that no sufficient level of detail existed at the 6-digit or 8-digit HS code level to distinguish between nylon 6 chips, nylon 6,6 chip and other types of nylon chip. The Commission established that all types of polyamide chips were already encompassed in the benchmark established in Section 3.2.5.5 and no evidence was brought forward showing how the use of data at 6 or 8 digit was affected by other inputs to a point that would make the benchmark inadequate. The argument was rejected.

• (114) In its comments to the Second Note, the complainants submitted that Russian imports of nylon chips classified under HS code 3908 10 fell within the scope of Regulation (EU) No 833/2014 and that, with increasing import volumes between 2022 and the investigation period, at decreasing unit average prices, the Russian imports of nylon chips into Türkiye negatively affected the average import price of nylon chips into Türkiye from ‘the rest of the world’. The Coalition requested the Russian imports to be removed from the nylon chips benchmark value.

• (115) The Commission established in the First Note that the import share of 18 % of the nylon 6 chips to Türkiye originated in Russia and the average Russian import price at 11,83 CNY/kg was substantially below the average import price from the rest of the world (20,61 CNY/kg), China excluded. The Commission therefore concluded that given the share of Russian imports and the difference in price between Russian imports and other imports the average import price of nylon 6 chips from the ‘rest of the world’ was unlikely to be affected by the imports from Russia and did not exclude them from the statistics. The argument was rejected.

3.2.5.3.   POY/FDY/HOY and DTY/ACY/ATY/TDY/TTY yarns