COMVIISSION OF THE EUROFEAN COMVIUNITIES 
C0M(91) 419 final 
Brussels, 28 October 1991 
Proposal for a 
COUNCIL REGULATION (EEfn 
Imposing a definitive ant I-dumping duty on 
Imports of gas fuelled, non refI liable pocket 
flint lighters originating In Japan, 
the People's Republic of China, 
the Republic of Korea and Thailand 
and definitively collecting the 
provisional ant I-dumping duty 
(presented by the Commission) 
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EXPLANATORY M E M O R A N DUM 
(1) Commission Regulation (EEC) No 1386/91<1) imposed a provisional 
anti-dumping duty on imports of gas fuelled, non refiliable pocket 
flint lighters originating in Japan, the People's Republic of 
China, the Republic of Korea and Thailand. 
(2) Council Regulation (EEC) No 2832/91<2> extended this duty for a 
period of two months. The provisional duty is therefore due to 
expire on 29 November 1991. 
(3) The Japanese, Chinese and Thai exporters together with a number of 
importers, requested and were granted hearings and made their 
views known in writing. The Commission considered all the views 
put to it before drawing its final conclusions. 
(4) The Thai producer and exporter Thai Merry Co. Ltd., provided fresh 
evidence concerning the depreciation amount used by the Commission 
for the preliminary determination of normal value. In view of this 
evidence a new dumping calculation concerning Thai Merry Co. Ltd 
has been done. Consequently, the dumping margin as a percentage of 
CIF value, with regard to this company, has been modified to 
14.1%. 
Given the fact that Thailand has been used as the analogue country 
for calculating normal value for China, the dumping margin for 
China also required to be modified and is now 16.9%. 
(5) In the light of the above, the Commission confirmed its 
provisional conclusions to the effect that lighters originating in 
Japan, the People's Republic of China, the Republic of Korea and 
Thailand were being dumped in the Community and were causing 
material injury to Community production, and concluded that it is 
in the Community's interest to take protective measures in the 
form of a definitive anti-dumping duty and to collect the 
provisional duty definitively at the duty rate definively imposed. 
(1) O.J. No L 133, 28.05.1991, p. 20 
(2) O.J. No L 272, 28.09.1991, p. 1 
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(6) One of the two Thai exporters, Thai Merry Co. Ltd, has offered an 
undertaking which is considered acceptable. The undertaking will 
increase the price of the products In question by a level 
sufficient to remove the dumping established by the Commission. 
Following consultations within the Advisory Committee one Member 
State raised objections with regard to the acceptance of the 
undertaking. According to Articles 9 para. 1 and 10 para. 1 of 
Regulation (EEC) No 2423/88, the Commission submitted to the 
Council a report on the results of the consul tat ion together with 
a proposal that the undertaking be accepted. The decision 
accepting the undertaking shall be adopted if, within one month, 
the Council has not decided otherwise. 
(7) In accordance with Article 12 of Council Regulation (EEC) No 
2423/88 the Commission therefore proposes that the Council impose 
a definitive ant I-dumping duty on imports of gas fuelled, non 
refiliable pocket flint lighters ©rtglnatfng in Japan, the 
People's Republic of China, the Republic of Korea and Thailand 
(with the exception of Thai Merry Co. ltd.) and decide to collect 
the provisional anti-dumping duty to the extent of the amount of 
the definitive duty imposed. 
(8) The Commission intends, with a reserve of the results of the 
procedure mentioned under point (5) above, to publish the decision 
accepting the undertaking from the Thai exporter Thai Merry Co. 
Ltd. at the same time as the Council Regulation. 
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Proposal for a 
COUNC IL REGULATION 
( E EC ) N * OF 
imposing a definitive ant I-dumping duty on 
Imports of gas fuelled, non refI liable pocket 
flint lighters originating In Japan, 
the People's Republic of China, 
the Republic of Korea and Thailand 
and definitively collecting the 
provisional antI-dumping duty 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, 
Having regard to Council Regulation (EEC) No 2423/88 of 11 July 1988 on 
protection against dumped or subsidized imports from countries not 
members of the European Economic Commun!tyC), and in particular 
Article 12 thereof, 
Having regard to the proposal from the Commission submitted after 
consultation within the Advisory Committee as provided for under the 
above Régulât ion, 
(1) O.J. No L 209, 02.08.1988, p. 1 
~h~ 
Whereas: 
A. PROVISIONAL MEASURES 
(1) The Commission by Regulation (EEC) No 1386/91(2>, Imposed a 
provisional anti-dumping duty on Imports into the Community of gas 
fuelled non-refiIlable pocket flint lighters (hereinafter referred 
to as lighters) originating In Japan, the People's Republic of 
China, the Republic of Korea and Thailand and falling within CN 
code ex 9613 10 00 (TARIC code : 9613 ta Otï *10). The Council by 
Regulation (EEC) No 2832/91(3) extended this duty for a period 
not exceeding two months. 
B. SUBSEQUENT P R O C E D U R E 
(2) Following the imposition of the provisional ant I-dumping duty, the 
interested parties who so requested were granted an opportunity to 
be heard by the Commission. They also made written submissions 
mak i ng known their vIews on t he fInd ings. 
(3) Parties were informed in writing of the essential facts and 
considerations on the basis of which it was intended to recommend 
the Imposition of definitive duties and the definitive collection 
of amounts secured by way of a provisional d&ty. They were also 
granted a period within which to make representations subsequent 
to the disclosure. 
(4) The oral and written comments submitted by the parties were 
considered and, where appropriate, the Commission findings were 
modified to take account of them. 
(2) O.J. No L 133, 28.05.1991, p. 20 
(3) O.J. No L 272, 28.09.1991, p. 1 
C. PRODUCT 
(5) A number of exporters and one importer repeated the arguments put 
forward in the administrative procedure before the provisional 
measures that the Community producers' lighters and the imported 
lighters are not like products, since certain of the Community 
models produce more ignitions. 
The Council, however, confirms the Commission conclusions on this 
point, outlined in recital (13) of Regulation (EEC) No 1386/91, on 
which no new evidence was submitted. 
The Council, therefore, confirms that the lighters produced and 
sold by the Community manufacturers, form one single category of 
product and constitute a product alike in all respects to the 
product imported from Japan, the People's Republic of China, the 
Republic of Korea and Thailand within the meaning of Article 2(12) 
of Regulation (EEC) No 2423/88. 
D. DUMPING 
(6) The Thai producer and exporter Thai Merry Co. Ltd., provided fresh 
evidence concerning the depreciation amount used by the Commission 
for the preliminary determination of normal value. In view of this 
evidence a new dumping calculation concerning Thai Merry Co. Ltd 
has been done. Consequently, the dumping margin as a percentage of 
cif value, with regard to this company, has been modified to 
14.14%. 
(7) Given the fact that Thailand has been used as the analogue country 
for calculating normal value for China, the dumping margin for the 
People's Republic of China aiso required to be modified and is now 
16.94%. 
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(8) A Chinese exporter, Gladstrong Investments Ltd. which did not 
export to the Community during the reference period requested to 
be excluded from the application of the duty. Since the Commission 
was not in a position to make a determination with regard to this 
exporter, this request could not be accepted by the Council. 
Nevertheless, the Council notes that the Commission is ready to 
initiate without delay a review whenever the exporting company can 
show to the Commission, and supply to that effect sufficient 
evidence that It did not export during the Investigation period, 
it started exporting or has the intention to export to the 
Community after the investigation period and that it is not 
related to or associated with any of the companies subject to the 
present Investigation for which dumping was found. 
(9) With regard to Dong Guan TIan Bao Lighter Factory, another Chinese 
exporter, who submitted a reply to the questionnaire, which was, 
in any case, incomplete, more than six months after the deadline 
specified in the questionnaire sent by the Commission services, 
It is considered that the dumping margin established for the 
People's Republic of China should apply. 
(10) Gao Yao Co. submitted that the ant I-dumping duties imposed on 
Imports made by Gao Yao Co. should be cancelled and the normal 
value applicable to Gao Yao Co. calculated pursuant to Article 
2(6) and not Article 2(5) of Regulation (EEC) No 2423/88. 
It was argued that Article 2(5) should not be applied since 
imports to the EEC were not made from the People's Republic of 
China but from Hong Kong and that Gao Yao Co. (Hong Kong) should 
be considered as an exporter and not Gao Yao Co. (China). 
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The Council, however, confirms that in this case the products 
concerned were merely transhipped through Hong Kong and therefore 
the normal value should be determined in accordance with Article 
2(5) of the basic Regulation. 
(11) The exporters from Thailand argued that the profit margin of 8%, 
added to the cost of production for the determination of the 
normal value, was too high. All domestic sales of Thai Merry Co. 
Ltd, were found to have been made at a loss, the domestic sales of 
Poli top Co. Ltd were not considered representative and there were 
no other producers or exporters in Thailand in the same business 
sector. Therefore, the Commission established a profit margin of 
8% on the basis of the profit realised by other exporters from 
those countries which cooperated in this procedure. 
(12) In the light of the above, the Council confirms the conclusions 
set out in recitals 19 to 29 of Regulation (EEC) No 1386/91 taking 
into account the corrections mentioned above with regard to Thai 
Merry Co. Ltd and the consequent impact on the margin established 
for the People's Republic of China. 
The definitive weighted average margins expressed as a percentage 
of CIF value for each of the exporters concerned are as follows: 
Japan 
Tokai Corporation, Yokohama 96,56% 
People's Republic of China 16.94% 
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RepubIi c of Korea 
SamJi Industrial, Inchon 31.58% 
Thai land 
Politop Co. Ltd, Bangkok 5.87% 
Thai Merry Co. Ltd, Samutsakorn 14.14% 
E. INJURY AND CAUSATION OF INJURY 
(13) A number of exporters raised again the Issue of price comparison 
of lighters at the resale level of the first Independent buyer in 
the Community. It was argued that certain imported lighters 
contained less gas, produced less flame and, therefore, had a 
different appeal to customers than those produced by the Community 
producers. 
Recital 34 of Regulation (EEC) Nr 1386/91 clearly Indicates that 
the Commission excluded from the price undercutting exercise a 
number of lighters by taking into account only lighters with a 
similar gas content. The Council, therefore, confirms the 
Commission findings with regard to price undercutting. 
(14) No new evidence of concerning injury was presented by any party. 
Consequently, the Council confirms the Commission conclusions on 
Injury as they are set out In Regulation (EEC) No 1396/91. 
(15) In recitals 44 to 50 of Regulation (EEC) No 1386/91 the Commission 
concluded that the cumulated dumped Imports from Japan, the 
People's Republic of China, the Republic of Korea and Thailand had 
caused material Injury to the Community industry. The Commission 
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found that the rapid Increase of Japanese, Chinese, Korean and 
Thai low-priced lighters coincided with an equally rapid decrease 
of production, capacity utilisation, sales volume, market share, 
prices, profits and employment of the Community industry. 
No new facts or new arguments concerning these findings were 
submitted to the Commission after the publication of Regulation 
(EEC) No 1386/91. The Council therefore confirms the conclusions 
of the Commission as set out in recitals 44 to 50 of that 
Regulation. 
F. INJURY THRESHOLD 
(16) With regard to the calculation to determine the injury elimination 
level, the Commission considered it appropriate that the 
difference between actual selling prices of the exporters and a 
price which would allow the Community industry to achieve 15% 
profit should be eliminated. 
This 15% profit margin has been contested by the Japanese producer 
and exporter as being too high. 
(17) According to the Community producers, a 15% profit margin is the 
minimum necessary to render possible additional investments in 
manufacturing facilities and research and development, without 
which the deterioration of the situation of the Industry would be 
bound to be exarcebated and the injury caused by dumping would not 
be removed. 
Consideration was given to the fact that the profit achieved by 
the major world producers historically ranged between 12 and 20%. 
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In the light of the above, the Council confirms Commission 
findings with regard to the injury threshold as established in 
recital 59 of Regulation (EEC) No 1386/91. 
G. COMMUNITY INTEREST 
(18) The Japanese exporter suggested that there was a danger of 
Japanese imports being replaced by low-priced imports from other 
non-Community countries either from those involved in this 
procedure or others if a high anti-dumping duty was imposed 
against Japan. 
(19) The Council is not persuaded that the duties proposed would lead 
to Japanese imports being replaced by low priced imports from 
other third countries and considers that even if it were to happen 
it would not be contrary to the Community's interest. As the 
Council has already stated in previous Regulations, anti-dumping 
duties should neither have a protectionist effect for the 
Community industry nor cause any undue handicap for the exporters. 
They are designed to re-establish fair and open market conditions 
by protecting the Community industry against an unfair trading 
practice. If some exporters' position on the market suffers after 
the imposition of anti-dumping duties, then this is only the 
consequence of their inability to face a fair competitive market 
situât ion. 
(20) The Council confirms the Commission findings set out in Section G. 
of Regulation (EEC) No 1386/91 and considers that it is in the 
Community interest to impose anti-dumping measures to eliminate 
the injurious effects of dumped imports originating in Japan, the 
People's Republic of China, the Republic of Korea and Thailand. 
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H. DUTY 
(21) On the basis of calculations of dumping and Injury threshold 
described in Regulation (EEC) Nr 1386/91 and the submissions 
subsequently received, the Council concludes that duties should be 
Imposed at the level of the actual dumping found for the People's 
Republic of China and Thailand (firms Thai Merry Co. Ltd and 
Poli top Co. Ltd) and for Japan (Tokai Corporation) and the 
Republic of Korea (SamJI Industrial) on the basis of the injury 
threshold established. 
The duties, therefore, shall be: 
- Tokai Corporation, Japan 35.7% 
- SamJI Industrial, Republic of Korea 22.7% 
- Gao Yao Co., People's Republic of China 16.9% 
- Thai Merry Co. Ltd, Thailand 14.1% 
- Politop Co. Ltd, Thailand 5.8% 
(22) The Council confirms, for the reasons stated by the Commission in 
recital. 60 of Regulation (EEC) No 1386/91, that the highest duty 
established for each country should be applied to firms which did 
not respond to the Commission questionnaire or otherwise did not 
make themselves known to the Commission. 
I. UNDERTAKING 
(23) One of the two Thai exporters, Thai Merry Co. Ltd, has offered an 
undertaking which Is considered acceptable. The undertaking will 
increase the price of the products in question by a level 
sufficient to remove the dumping established by the Commission. 
•~n~ 
Following consultations during which one Member State raised 
objections to this solution, the undertaking was accepted by 
Commission Decision No ..../91. 
J. COLLECTION OF THE 
PROVISIONAL DUTIES 
(24) The Thai exporter, Thai Merry Co. Ltd, requested that lighter 
Imports already dispatched before the date that provisional 
measures came into effect and customs cleared after that date be 
released free of collection of provisional duties and consequently 
that the provisional duty should not be definitively collected in 
such cases. 
(25) In accordance with the provisions of Articles 2(1) and 11(1) of 
Regulation (EEC) No 2423/88, anti-dumping duties are applied to 
the products concerned at the moment they enter Into free 
circulation In the Community. Contrary to Council Regulation (EEC) 
No 288/82 of 5 February 1982 on common rules for imports^1) to 
which the exporter refers, the anti-dumping Regulation, which is 
applicable to products imported under conditions of unfair 
competition, does not provide for any exceptions to this rule. 
Moreover, it should be recalled that the Commission made 
considerable efforts to keep the parties concerned informed and 
thus the importers cannot reasonably claim to have been unaware of 
the proceedings or of the stage to which the Investigation had 
progressed during the period between the initiation of the 
proceedings and the imposition of the provisional duty. 
(1) O.J. No L 35, 09.02.1982. p. 1 
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(26) Therefore, in view of the size of the established dumping margins 
and of the serious nature of the Injury caused to the Community 
industry, the Council considers It necessary that the amounts 
secured by way of the provisional anti-dumping duty should be 
collected definitively to the extent of the amount of the 
definitive duty imposed, 
HAS ADOPTED THIS REGULATION 
Article 1 
A definitive anti-dumping duty is hereby Imposed on Imports of gas 
fuelled, non refiliable pocket flint lighters falling within CN 
code ex 9613 10 00 (Taric code 9613 10 00 * 10) originating in 
Japan, the People's Republic of China, the Republic of Korea and 
Thai land. 
The rate of the duty, applicable to the net free-at-Commun I ty-
frontler price before duty, is set out as follows: 
(a) 35,7% for the products originating in Japan, 
(b) 16.9% for the products originating In the People's Republic of 
China, 
(c) 22,7% for the products originating in the Republic of Korea, 
(d) 14.1% for the products originating in Thailand (Taric 
additional code 8543) with the exception of imports which are 
produced and sold for export to the Community by Polltop Co. 
Ltd, Bangkok where the rate shall be 5,8% (Taric additional 
code 8544). 
Oi~ 
3. The duty referred to in paragraph 2(d) shall not apply to gas 
fuelled non refiliable pocket flint lighters exported to the 
Community by Thai Merry Co. Ltd (Taric additional code 8542). 
4. The provisions in force concerning customs duties ®hal;l lapply. 
Article 2 
The amounts secured by way of the provisional anti-dumping duty imposed 
under Regulation (EEC) No 1386/91 shall be adefinitlvelw collected at 
the duty rate definitively imposed. 
Article 3 
This Regulation shall enter into force on the day fol lowing that of its 
pub iI cat Ion in t he Official JournaI of the ^European Commun It les. 
This Regulation shall be binding in its tentir©% and directly 
applI cab le in all Member States. 
Done at Brussels, ?Forttbe iCounci 

ISSN 0254-1475 
COM(91) 419 final 
DOCUMENTS 
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