Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) N° 3433/91 insofar as it imposes a definitive anti-dumping duty on imports of gas-fuelled, non-refillable pocket flint lighters originating in the People' s Republic of China
Date: 1995-04-06
Institutions: European Commission
Subjects: China, anti-dumping duty, non-durable goods, tobacco industry

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels, 0604.1995 
COM(95)  141 final 

Proposal for a 

COUNCIL REGULATION (EC) 

amending Regulation (EEC) N° 3433/91 insofar as it imposes a definitive 
anti-dumping duty on imports of gas-fuelled, non-refillable pocket 
flint  lighters originating in the People's Republic of China 

(presented by the Commission) 

-u 

EXPLANATORY  MEMORANDUM 

(1)  By Regulation (EEC) N°  3433/911,  the Council  imposed  a definitive  anti-dumping 
duty on imports of gas-fuelled,  non-refillable  pocket flint  lighters originating,  inter 

alia, in the People's Republic of China.  The rate applicable to products originating 

in that country was set at  16.9%, corresponding to the level  of the dumping found 

for the People's Republic of China during the original investigation period. 

(2) 

In November  1993, the Commission received  a request  for  a review  of  the  above 

Regulation  lodged  by  the  European  Federation  of  lighter  Manufacturers.  The 

request alleged changed circumstances concerning the People's Republic of China in 

that there had been an increase in the  dumping margin for  Chinese  exports to  the 

Community and, consequently,  further injury.  In December  1993, considering that 

sufficient evidence had been submitted by the applicant, the Commission announced 
by a notice2 the initiation of a review of Council Regulation  (EEC) N°  3433/91  in 
respect of imports originating in the People's Republic of China, in accordance with 

Article 14 of Regulation (EEC) N° 2423/88. 

(3)  Since  this  is  a  review  case  it  has  been  decided  to  proceed  directly  to  definitive 

measures  rather than to  pass through  the  provisional  stage.  In view  of  this,  the 

Commission, prior to  drafting its proposal on this case, provided interested parties 

with details of its calculation and gave them sufficient  time to comment and correct 

material errors. 

(4) 

the  current  review  investigation  showed  that  the  dumping  margin  for  Chinese 

exports  had  considerably  increased.  Expressed  as  a  percentage  of  the  CDF 

Community  frontier  value  of  the  imports,  the  dumping  margin  was  found  to  be 

80.3%. 

1  OJ No L 326, 28.11.1991, p. 1 
2  OJNo C 343, 21.12 1993, p.10 

if 

(5)  The investigation also showed that the  injury suffered  by the Community industry 

had considerably worsened  since,  in a growing  market,  the  Community producers 

concerned had lost market share and their profitability deteriorated.  The analysis of 

the  causal  link  between  this  injury  and  the  dumped  imports  from  the  country 

concerned  (detailed  in  recitals  51  to  61  of  the  attached  proposal),  led  to  the 

conclusion  that  the  said  imports  had,  taken  in  isolation,  caused  further  material 

injury to the Community industry. 

(6) 

In the original investigation, the adoption of measures was considered to be in the 

interest of the Community.  Since no new arguments have been made which would 

lead to reconsider this position, the findings of Regulation (EEC) No 3433/91 in this 

respect should be confirmed.  Accordingly,  the measure in force with regard to the 

People's Republic of China, which is no longer sufficient  to counteract the injurious 

dumping, should be amended. 

(7) 

In this respect,  given that the injury elimination level  was  found  to  be  higher than 

the  dumping margin,  the  necessary  amendment  should  be  based  on  the  dumping 

margin  established  in  the  current  investigation.  In  addition,  since  prices  of  the 

Chinese imported disposable flint lighters steadily decreased after the imposition  of 

the  measures  in  1991, it  is  highly  foreseeable  that  an  increased  ad  valorem  duty 

would  again  lose  its  effectiveness  within  a  relatively  short  time.  Accordingly,  a 

simple  amendment  to  the  current  ad  valorem  duty  does  not  appear  to  be 

appropriate. 

It is therefore proposed to amend the measure in force with regard to the People's 

Republic of  China by imposing  a specific  duty per lighter  (namely 0.065  ECU per 

piece)  The  proposed  amendment  should  constitute,  insofar  as  the  People's 

Republic of China is concerned, a modification within the meaning of Article  15 (1) 

of Regulation (EEC) No  2423/88.  Accordingly,  the amended  measure on imports 

of gas-fuelled, non-refillable pocket flint lighters originating in the People's Republic 

of  China  should,  subject  to  the  relevant  provisions  concerning  the  duration  of 

measures, lapse after a period  of five years starting from the date on which it will 

enter into force. 

Council Regulation ( EQ  N° 

amending Regulation (EEC) N° 3433/91 insofar as it imposes a definitive 

anti-dumping duty on imports of gas-fudled, non-refillable  pocket 
flint lighters originating in the People's Republic of China 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to Council Regulation (EEC) N* 2423/88 of  11 July  1988 on protection 
against  dumped  or  subsidised  imports  from  countries  not  members  of  the  European 
Economic  Community1,  as  last  amended  by  Regulation  (EC)  No  522Z942,  and  in 
particular Article 14 thereof, 

Having regard to the proposal  submitted by the Commission  after  consultations within 

the Advisory Committee, 

WHEREAS: 

A.  PREVIOUS  INVESHGAHONS 

(I)  By Regulation (EEC) N° 3433/913, the Council imposed a definitive anti-dumping 
duty on imports of gas-fuelled, non-refillable pocket flint lighters falling within CN 

code ex 9613  10 00 and originating, inter alia,  in the People's Republic of China. 

The rate applicable to products originating in that country was set at 16.9%. 

1  OJNaL 209, ©2.08.1988, p. 1. 
2  OJNoL  6$, I0.03.1994,p. 10. 
3  OJ No L 326,28.1LI991, p.  1 

(2)  By  a  notice  published  in  March  19924,  the  Commission  initiated  a  review  of 
Regulation  (EEC) N° 3433/91 insofar  as it concerned  certain  Chinese companies 
which alleged, in particular, that they did not export the product concerned during 
the  period  covered  by the  original  investigation  (a  so-called  newcomer  review). 
By Decision  N°  93/377/EEC  of 22 June  19935,  the  Commission  terminated  the 
above review investigation without any changes to the measures in force. 

B.  CURRENT  REVIEW  INVESTIGATION 

(3) 

In November  1993, the Commission received a request for a review of the above 
Regulation  insofar  as it  concerns imports  originating  in the People's Republic of 
China.  The  request  was  lodged  by  the  European  Federation  of  lighter 
Manufacturers,  acting on behalf of Community producers together representing a 
major  proportion of the Community production  of the product  in question.  The 
request  alleged  changed  circumstances  since  the  conclusion  of  the  original 
investigation in that there had been an increase in the dumping margin for exports 
to the Community from the People's Republic of China and, consequently,  further 
injury.  It was considered that the review request contained  sufficient  evidence to 
justify the opening of an investigation. 

(4) 

In  December  1993  the  Commission  announced  by  a  notice6  the  initiation  of  a 
review  of  Council  Regulation  (EEC)  N°  3433/91  in  respect  of  imports  of gas-
fuelled,  non-refillable  pocket  flint  lighters  originating  in the People's Republic of 
China, in accordance with Article 14 of Regulation (EEC) N° 2423/88  (hereinafter 
referred to as 'the Basic Regulation'). 

(5)  The  Commission  officially  advised  the  exporters  and  importers  known  to  be 
concerned, the representatives of the exporting country and the complainants and 
gave the parties concerned the opportunity to make their views known in writing 
and to request a hearing. 

4  O J N oC  62,  11.3.1992, p. 2 
5  OJ No L  158, 30.6.1993, p. 43 
6  OJ No C 343, 21.12.1993, p. 10 

(6)  One importer, two exporters and one producer of the People's Republic of China 

made  their  views  known  in  writing.  Four  Community  producers,  Bic  S.A., 

Swedish Match  S.A,  Tokai  Setki GmbH and Flamagas  S.A.  also  submitted  their 

views in writing.  Several of the above-mentioned  companies requested  and were 

granted hearings. 

(7)  The Commission sought  and verified  all the  information  it  deemed  necessary  for 

the purpose of its investigation and carried out investigations at the premises of the 

following companies: 

Community producers (factories and/or sales offices) 

Bic Deutschland GmbH, Ettlingen, Germany 

- 

- 

- 

Bic S.A., Clichy, France 

Bic S.A., Redon, France 

Biro Bic Ltd, London, United Kingdom 

/ 

Bryant & May, High Wycombe, United Kingdom 

Flamagas S.A., Barcelona, Spain 

- 

Laforest Bic S.A., Tarragona, Spain 

Swedish Match, Visselhôvede, Germany 

Swedish Match S.A., Rillieux-la-Pape, France 

- 

Tokai Seiki GmbH, Mônchengladbach Germany 

Tokai Vesta Hispania S.A., Alcalâ de Henares, Spain 

Exporters 

Capital Line Industries Ltd, Hong Kong. 
Gladstrong Investments Ltd, Hong Kong 

Unrelated importer 

Trôber GmbH, Hamburg, Germany 

(8)  The Commission also sought information from producers in the Philippines which 
was  used  as  the  analogue  country  for  the  establishment  of  normal  value  (see 
recitals  19 to 27 below).  Detailed and complete information  was provided by and 
verified at Swedish Match Philippines Inc., Manila, Philippines. 

(9)  The  exporters  and  the  sole  importer  which  co-operated,  requested  and  were 
informed  of  the  essential  facts  and  considerations  on  the  basis  of  which  it  was 
intended to recommend the amendment of the definitive anti-dumping duty in force 
on imports of the product concerned originating in the People's Republic of China. 
The  Commission  took  into  account,  where  appropriate,  the  submissions  of  the 
parties concerned. 

(10)  The investigation of dumping covered the period  1 January to 30 September 1993 

(hereinafter referred to as 'the investigation period'). 

C.  PRODUCT  UNDER  CONSIDERATION,  LIKE  PRODUCT 
AND  COMMUNITY  INDUSTRY 
(i) Product under consideration 

(11)  The product  subject to the definitive  anti-dumping duty referred  to in recital  1, is 
gas-fuelled,  non-refillable pocket flint lighters (hereinafter  referred to as 'disposable 
flint lighters'). 

It should be recalled in this respect that there are other disposable lighters on the 
market  (piezo  lighters)  the  technical  characteristics  of which  are  quite  different 
from the  above-mentioned  product!  Therefore  they  were  not  considered  to  be 
alike to the product  concerned  in the original investigation, were not  covered by 
the original investigation and were excluded from the scope of the measures. 

(12)  The  importer  which  co-operated  claimed  that,  in  addition  to  the  already  existing 
separation between flint  and piezo disposable lighters,  a new distinction  should  be 
made  amongst  disposable  flint  lighters,  between  plastic  body  and  nylon  body 

lighters.  This  importer  claimed  that  two  markets  for  disposable  flint  lighters 

* 

existed,  one  offering  luxury  nylon-based  lighters  and  the  other  so-called  standard 
plastic body lighters.  Alleging that all Chinese disposable flint  lighters had a plastic 
body, this importer requested  that the product under  consideration be restricted  to 
such products. 

(13)  In the course of the investigation carried out by the Commission, it was found  that 

such a narrow definition  of the product under consideration would not be justified, 

notably  because the  alleged  divisibility  of the  disposable  flint  lighters  market  into 

segments, which is based  on differences  in physical  characteristics  and  consumers' 

perception of the product, is not confirmed  by facts. 

The product  in  question  is indeed  manufactured  in different  sizes  and  models and 
different  materials may be used  in the  composition  of the lighter  body.  However, 
all these  disposable  flint  lighters have the  same basic  technical  characteristics,  the 
same basic application and perform the same function.  In contrast to this, it has to 
be noted that the distinction between flint  and  piezo  disposable lighters was based 
on differences  in technical characteristics which are clearly established. 

In  addition,  it  is  also  clear  that  the  difference  between  flint  and  piezo  lighters  is 

perceptible  to  consumers,  while  the  difference  between  disposable  flint  lighters 

with a body made of either plastic or nylon, is not.  Indeed,  the product  concerned 

is a disposable one and the statement that consumers would be aware of the above-

mentioned  difference  is  not  evidenced,  among  other  things,  by  the  existence  of 

clearly separate channels of sales.  On the contrary,  all disposable flint  lighters  are 
sold  indistinctly  in  the  same  kind  of  shops  to  customers  having  the  same 
expectations  and  nothing  is  done  to  make  consumers  aware  of  the  alleged 
differences  between  plastic body  and  nylon body  lighters.  In  particular,  it  should 
be  noted  that  plastic  body  and  nylon  body  lighters  are  not  easily  distinguishable 
since they are both available in translucent and opaque forms. 

(14)  Therefore,  the  whole  range  of  models  of  disposable  flint  lighters  is  to  be 

considered  as forming  one  single category  of product,  irrespective  of the  material 

used  to  manufacture  the  body,  which  represents,  in  any  case,  only  a  minor 

difference  in physical characteristics, as well as in cost terms (see below recital 36). 

The  findings  of  the  original  investigation  in  respect  of  the  product  under 
consideration,  as recalled in recital  11 above, are therefore  confirmed. 

(ii) Like product 

(15)  The  importer  which  co-operated  claimed  that  the  findings  of  the  original 
investigation  in  respect  of  the  like  product  definition  should  be  reconsidered,  in 
order to take account of the fact that a Community producer,  newly involved in the 
proceeding,  was  manufacturing  plastic  body  lighters,  allegedly  'identical'  to  those 
imported from the People's Republic  of China, while other  Community  producers, 
as  well  as  the  co-operating  producer  in  the  analogue  country,  were  producing 
nylon  body  lighters  which  should  be  considered  according  to  this  importer  as,  at 
most, 'similar' to Chinese lighters. 

It  should be  stressed  again in this respect  that  a minor  physical  difference,  such as 
the material used for the  manufacture  of the lighter body,  which  has no  impact  on 
the basic technical characteristics, basic application and function  of the product and 
which  is not  perceptible  to  consumers,  is  insufficient  to justify  a  distinction  being 
made  between  allegedly  'identical'  and  'similar'  disposable  flint  lighters.  This 
conclusion  applies to the comparison  of disposable flint  lighters imported from the 
People's  Republic  of  China with,  respectively,  all  those  produced  and  sold  in  the 
Community  and  those  produced  and  sold  by  the  co-operating  producer  in  the 
analogue country. 

(16)  The  same  importer  also  made  representations  regarding  various  physical 
differences  said to  have an impact  on the like product  definition.  However,  these 
allegations, in general already addressed  during the original investigation,  were not 
supported  by  decisive  new  evidence  that  would  justify  their  being  taken  into 
account in the like product definition,  notably as regards the consumers' perception 
of the product. 

(17)  In these  circumstances,  it  is  confirmed  that  the  disposable  flint  lighters  produced 
and  sold  by  the  Community  industry  and  those  imported  from  the  People's 
Republic  of  China  possess  similar  basic  physical  and  technical  characteristics  for 
them to be considered  a like product.  While there may be  some minor  differences 
between  the  imported  product  from  the  People's  Republic  of  China  and  the 
Community production, these differences  are not  such as to  warrant  a finding that 
they  should  not  be  regarded  as  like  products.  The  findings  of  the  original 
investigation in respect of the like product definition  are therefore  confirmed. 

As explained under recitals 26 and  36 below, the above conclusion is equally valid 

for the disposable flint lighters produced  and  sold by the co-operating  producer in 

the analogue country. 

(Hi) Community  industry 

(18)  In  the  light  of  the  above,  the  elaim  that  the  Community  industry  should  be 

redefined  as comprising only the  Community  producer  manufacturing  plastic body 

lighters  was  rejected.  On  this  basis,  it  was  found  that  during  the  investigation 

period, the Community producers  on behalf of which the request  for  a review was 

lodged,  represented  more  than  70%  of  total  Community  production  of  the  like 

product.  Accordingly, it is concluded that the producers in question constitute the 

'Community industry' within the meaning of Article 4(5) of the Basic Regulation. 

8 

D.  DUMPING 
(a)  Normal  value 
(i)  Analogue  country 

(19)  Since  the  People's  Republic  of  China  is  not  a  market  economy  country,  normal 

value  had  to  be  determined  on  the  basis  of  information  obtained  in  a  market 

economy country (so-called  analogue country)  in accordance with  Article 2 (5)  of 

the Basic Regulation.  For this purpose,  the  complaint  suggested  that  Thailand  be 

used as the analogue country as in the original investigation  and  contact  was made 

with the two  Thai producers that  had  co-operated  with the  said  investigation.  On 

this occasion, the Thai producers did not co-operate. 

(20)  Thus,  contact  was also made for  this purpose with  one Korean  producer  and  two 
producers  in the Philippines.  Only the  producers  in the  Philippines  indicated  that 
they were willing to  co-operate  with  the  Commission  and  submitted  replies  to  the 
Commission's  questionnaire.  However,  in  the  case  of  one  producer  in  the 
Philippines, 
limited  and  more  details  were  requested. 
Subsequently,  the  producer  concerned  informed  the  Commission  that  it  was  not 
willing  to  supply  more  detailed  information.  Consequently,  this  producer  was 
considered  as uncooperative,  with the result  that  only  one  company  remained  as a 
possible source of information  concerning the Philippines. 

the  reply  was  too 

Following  disclosure  of  the  essential  findings  of  the  investigation,  the  importer 

which co-operated  claimed that  a Hong Kong  Company,  Cli-Claque Ltd,  allegedly 

manufacturing  flint  disposable  lighters  in  the  Philippines,  should  also  have  been 

contacted.  The  existence  of  this  alleged  producer  in  the  Philippines  was  only 

brought  to  the  attention  of  the  Commission  at  an  extremely  late  stage  of  the 

investigation  and  could  not,  therefore,  be  considered  without  significantly 
impeding the investigation. 

(21)  Since  no  other  possibility  existed  for  determining  normal  value,  a  change  in  the 
analogue  country  could  not,  therefore,  be  avoided. 
In  the  light  of  the  recent 
jurisprudence  of the Court  of Justice regarding the criteria  applicable to the choice 
of analogue  countries, the following  were verified  to  assess the  appropriateness  of 
the Philippines for this purpose: 

representativeness  of the market concerned: 

• 
the  size of its domestic  market  makes the Philippines  a  representative  country  for 
the  establishment  of  normal  value  for  the  People's  Republic  of  China  (total 
domestic sales of the co-operating producer in the Philippines amount to more than 
5% of Chinese exports to the Community); 

• 

openness of the market: 

the  Filipino  market  is  open  to  competition:  the  local  production  of  disposable 

lighters  is  facing  price  competition  mainly  due  to  substantial  imports.  The 

structure  of  demand  also  favours  competition  since  many  operators,  such  as 

supermarkets and medium or small-sized retailers are present on the market; 

access to basic materials: 

• 
finally, it  does  not  appear  that  significant  differences  exist  between  China  and  the 

Philippines  regarding  the  ease  of  access  to  basic  materials.  It  is  true  that  some 

parts  and  components  are imported  in the  Philippines  but  Chinese  producers  also 

import  from  suppliers  located  outside  China  some  of  the  most  sensitive  parts  of 

lighters, such as the  flint.  Overall, the availability of parts of lighters appears to be 

at least as good in the Philippines as it is in the People's Republic of China. 

(22)  However,  given that the company which co-operated  in the Philippines is part of a 
group  of  companies  of  which  a  complainant  is  also  part,  the  Commission  also 
considered  it  necessary  to  analyse the  implications  of the  existence  of  such links, 
with  a view to  determining  whether  this  situation  had  any  distorting  effect  on the 
data  submitted  and,  accordingly,  whether  this  information  could  or  could  not  be 
used in the framework of the current review investigation. 

10 

(23)  An  in-depth  examination  of  the  costs  of  production  supplied  by  the  Filipino 
producer  concerned  showed  that  due  to  the  fact  that  certain  parts  used  in  the 
manufacture  of  disposable  flint  lighters  were  bought  from  related  parties, 
additional costs were incurred.  Therefore,  for  the purpose of making  a reasonable 
and  appropriate  profitability  test,  the  additional  costs  in  question  were  deducted. 
After  such  adjustment,  it  was  found  that  the  prices  practised  by  the  co-operating 
Filipino  producer  for  sales  of  the  like  product  on  the  domestic  market  in  the 
ordinary course of trade permitted the recovery of all costs incurred in the ordinary 
course of trade plus a normal profit  margin. 

In  these  circumstances,  it  was  concluded  that  normal  value  could  be  based,  in 
accordance with Article 2 (5) (a) (i) of the Basic Regulation,  on the prices at which 
disposable flint lighters were actually sold for  consumption  on the domestic market 
in the Philippines. 

(24)  This, together  with  the  above  mentioned  elements  concerning  the  standing  of  the 
Philippines  as  analogue  country,  led  the  Commission  to  consider  that  the 
Philippines  was  an  appropriate  and  not  unreasonable  choice. 
Interested  parties 
were informed  in due time of this proposed  course of action.  The main  comments 
they have made in this respect  are discussed  below,  as well  as under  recitals 28  to 
31. 

(25)  The  exporters  concerned  either  agreed  or  did  not  react  to  the  proposal  to  use  the 

Philippines as the analogue country. 

11. 

(26)  Within the time limit granted  for  comments  regarding the  choice  of the  analogue 
country, the importer having co-operated indicated that the Philippines would only 
constitute an appropriate choice if the data used would concern a Filipino producer 
manufacturing  plastic  body  lighters  and  having  no  links  with  the  Community 
industry. 

As concerns the alleged physical differences  between plastic body and nylon body 
lighters,  it has to  be  noted  that  the  arguments  put forward  are  identical  to  those 
raised  in  respect  of  the  disposable  flint  lighters  produced  and  sold  by  the 
Community  industry  in  the  context  of  the  determination  of  the  product  under 
consideration and of the like product definition.  As explained under recitals  12 to 
17  above,  the  Commission  considered  that  all  disposable flint lighters  form  one 
single  category  of  product  and that  plastic  body  and  nylon  body  disposable flint 
lighters have to be considered as like products.  This conclusion is also valid in the 
context  of  the  choice  of  the  analogue  country.  With  regard  to  the  possible 
influence of existing links, the Commission considered that the examination set out 
in recital 23 above had provided ample evidence that, provided that normal value is 
based on domestic selling prices, the concern expressed was without foundation. 

This  importer  also  suggested  that  Mexico  be  chosen  as  the  analogue  country. 
However,  this  proposal  was  made  only  in  September  1994,  i.e.  more  than five 
months after the deadline set for comments on this issue and could not, therefore, 
be considered without significantly impeding the investigation. 

12 

(27)  The  conclusion 

that 

the  Philippines  constitutes  an  appropriate  and  not 

unreasonable  choice for  the  purpose  of  establishing  normal  value  for  the  People's 

Republic  of  China  in  accordance  with  Article  2  (5)  of  the  Basic  Regulation  is, 

therefore,  confirmed. 

(ii)  Claims for  an application of Article 2 (6) of the Basic Regulation 

(28)  Some interested  parties claimed that  normal value should  have been established  on 
the  basis  of  Article  2(6)  of  the  Basic  Regulation,  i.e.  in  accordance  with  the 
provisions  applicable when  a product  is not  imported  directly from the  country  of 
origin but  exported  to  the  Community  from  an  intermediate  country,  and  that,  in 
this  context,  normal value  should  have  been  established  in the  exporting  country, 
i.e. Hong Kong. 

(29)  It  should  be  noted  that  only  a  limited  number  of  Chinese  exporters  and  one 
unrelated  importer  co-operated  with  the  Commission.  It  so  happens  that  the  co 
operating  companies  either  exported  to  or  imported  into  the  Community  the 
Chinese lighters via Hong Kong.  These  companies  represent  around  53% of total 
exports  to  the  European  Community.  As  concerns  the  co-operating  exporters 
located  in Hong  Kong,  which  represent  around  13% of  total  exports  of  Chinese 
lighters  to  the  European  Community,  the  Commission  has  established  that  they 
also  sell  Chinese  lighters  on  their  domestic  market.  However,  for  the  other 
companies  (i.e.  non-cooperating  exporters  whose  importers  did  not  co-operate), 
the "exporting route" was not known. 

13 

(30)  In  this  context,  the  Commission  is  of  the  opinion  that,  as  a  general  rule,  the 
provisions of Article 2(6) are not applicable to imports originating in a non-market 
economy country.  However,  in the present case, it is likely that the vast majority 
of  Chinese  disposable  flint  lighters  were  simply  transhipped  in  Hong  Kong. 
Concerning the existence of production in the country of export, it would appear, 
according  to  information  made  available  to  the  Commission,  that  there  was  no 
production  of  finished  disposable  flint  lighters  in  Hong  Kong  during  the 
investigation  period.  Finally,  as  far  as  sales  prices  in the  country  of  export  are 
concerned,  since  the  lighters  concerned  are  either  manufactured  in  China under 
sub-contracting  agreements  or  the  parties  involved  are  related,  the  Commission 
cannot be satisfied that these sales were made in the ordinary course of trade. 

(31)  In view of the above, it is concluded that even if Article 2(6) were to be considered 
applicable to  imports originating  in a non-market  economy  country,  it would  not 

be appropriate in the context of the current investigation to establish normal value 

on the basis of the prices on the  domestic  market  of the country  of  export,  since 

there  was  no  production  of finished disposable flint lighters  in Hong  Kong  and, 

additionally,  no  reliable  comparable  price  would  exist  for  these  products  in that 

territory.  The  normal  value  would  thus  have  to  be  based  on  the  prices  on  the 

domestic market of the country of origin.  However, since the People's Republic of 

China  is  a  non-market  economy  country,  normal  value  must  be  established  in 

accordance with Article 2(5) of the Basic Regulation. 

14 

(Hi)  Domestic sales price on the Filipino market 

(32)  The  Commission  considered  whether  normal  value  could  be  established  on  the 
basis of the prices at which the product  is actually  sold  for  consumption  on the 
Filipino  market,  fa  this  respect,  it  was  noted  that  the  co-operating  Filipino 
company  sold its disposable flint  lighters to several  big  customers,  one of these 
customers  being  an  independent  distributor  which  resold  the  lighters  to  both 
retailers and wholesalers, another being a big tobacco company.  The Commission 
also established  that the sales prices allowed  for  a profit  on sales (see recital 23 
above). 

It  is  therefore  concluded  that  the  domestic  sales  prices  of  the  co-operating 
producer  on  the  Filipino  market  constitute  an  appropriate  basis  for  the 
establishment of normal value. 

(b)  Export price 

(33)  The Commission sent questionnaires to all exporters known from the two previous 
investigations concerning this product.  Only the two exporters and one importer 
mentioned under recital  7, as well as one Chinese producer (namely Dong Guan 
Lighter  Factory,  Dong  Guan  City,  People's  Republic  of  China)  submitted 
completed replies. 

15 

The total  quantities reported  by the co-operating  exporters  and the  co-operating 

importer  represent  53% of the  total  imports.  For  the  remaining  exports  and  in 

accordance with Article 7(7)(b)  of the Basic  Regulation,  since  Eurostat  statistics 

contain price information  based  on a mix of  different  lighters  (from  the  point  of 

view of presentation, shape, size, etc.) and, therefore,  not suitable for the purpose 

of  establishing  the export  price  and given  the  level  of  co-operation,  the  export 

price for the non-cooperating exporters was based on the average price of the co 

operating  company  with  the  lowest  average  price.  At  the  same  time,  it  was 

assumed  that  the fighters delivered  by  non-cooperating  exporters  were  "naked" 

lighters sold in 50 unit packs (so-called "bulk'). 

(34)  The co-operating exporters requested  individual  treatment  (i.e.  the  establishment 

of  separate  export  prices  and  thus  of  individual  dumping  margins).  Although 

individual  treatment  may  be  given  to  certain  exporters  in  non-market  economy 

countries, in particular where they have demonstrated their independence from the 

State in the conduct of their export policy and in the fixing of their export prices, it 

was considered that the utmost prudence was required in this matter. 

In  this  respect,  it  has  to  be  recalled  that  the  newcomer  review  investigation 

referred  to  in  recital  2  above  concluded  that  no  individual  treatment  could  be 

granted to any of the four Chinese companies  involved  in the  said  investigation. 

Since  that  conclusion concerned,  among  others,  the  two  companies  having  co 

operated in the current investigation and given that the companies in question did 

not  submit  any  new  substantiated  evidence  with  regard  to  their  claimed 

independence, the granting of individual treatment to the applicants was considered 

neither  appropriate  nor  consistent  with  the  Community  Institutions'  established 

approach. 

16 

(c)  Comparison 

(35)  Although all disposable flint lighters can be considered one single product, they are 

sold in different  forms,  i.e.  naked,  printed,  sleeved,  etc.  The exports from China 

reported by co-operating companies consisted,  by about 80%, of naked lighters in 

"bulk".  Only  small  quantities  exported  concerned  one  or  two  side  printed 

disposable lighters.  For the purposes of the dumping calculation,  only the normal 

value and the export price of naked lighters in bulk packing were compared.  This 

approach was  considered  reasonable  since  naked  lighters  in bulk  constituted  the 

great majority of the exported quantities as reported by co-operating companies. 

(36)  The importer having co-operated claimed that the lighters manufactured by the co 

operating Filipino company were not comparable with the Chinese lighters because 
they  were  made  out  of  different  material,  i.e.  the  body  of  the  Filipino  lighter  is 

made of nylon and the body of the Chinese  lighter of plastic.  With regard to the 

other parts, the same importer also claimed that differences  existed  and should be 

taken  into  account  in  the  form  of  a  price  adjustment  of  100%.  This  importer 

claimed that these physical differences  resulted in a higher cost  of production and 

thus have an impact on the selling price for the Filipino lighter when compared to 

the Chinese lighter. 

As  concerns  the material  used  for  the  manufacture  of  the  body,  the  information 

available to the Commission showed that the type of raw material used by Chinese 

producers  is  indeed  less  costly  per  kilogram  than  the  one  used  by  the  Filipino 

producer.  However,  the  technical  characteristics  of  the  plastic  body  lighter 

indicate that the walls of the body are up to 2.5  times thicker than the walls of the 

nylon  body  lighter,  and  therefore  that  more  material  is  used.  In  addition,  the 

processing  cycle is longer in the case of the plastic body lighter due to the longer 

period required for cooling.  On balance, the difference  in cost is thus negligible. 

17 

The  Commission  accepts  that  the  parts  used  by  the  Chinese  and  the  Filipino 
producers  are not  absolutely identical  and  that  consequently  the  assembly  process 
is not strictly identical.  However,  on the basis of the information  made available to 
the  Commission,  an  allegedly  more  sophisticated  part  and/or  a  slightly  different 
part  was  not  systematically  more  costly  to  produce  than  the  corresponding 
allegedly  less  sophisticated  one.  Furthermore,  no  information  was  available  to 
suggest  that  the  alleged  physical  differences,  which  only  negligibly  affect  costs, 
have an impact on sales prices. 

In  these  circumstances,  it  is  concluded  that  no  price  adjustment  is  warranted  to 

take account of alleged physical and/or qualitative  differences. 

(37)  For the purpose of ensuring a fair  comparison,  an adjustment  to  normal value was 
granted  in respect  of the domestic  sales tax  on the Filipino  market.  As far  as the 
export  price  is  concerned  and  where  available,  the  actual  freight,  insurance  and 
other  costs  were  deducted  to  come  to  FOB  level,  otherwise  a  percentage 
corresponding  to  the  latter  deductions  was  taken.  No  further  adjustment  was 
claimed or considered  necessary. 

Domestic  sales prices in the Philippines  and  Chinese  export  prices were  compared 
at the same level of sales, i.e. FOB national border. 

(d)  Dumping  margin 

(38)  The  dumping  margin  expressed  as  a  percentage  of  the  CIF  Community  frontier 

value of the imports was found to be 80.3%. 

18 

E.  INJURY 

(a)  General  remarks 

(39)  It  should  be  stressed  that  the  present  review  investigation  was  carried  out  further 
to  a  request  from  the  Community  industry  alleging  that  dumping  of  Chinese 
disposable  flint  lighters  had  dramatically  increased  since  the  conclusion  of  the 
original investigation and claiming that the measures in force  should be amended in 
order to remove further  injury caused to the Community industry. 

Taking into account the provisions of Article  13(3) of the Basic Regulation,  it was 

necessary  to  investigate  the  level  of  injury. 

In  the  original  investigation,  the 

injurious  effects  of  Chinese  dumped  imports  had  been  assessed  and  established 

cumulatively with imports from three other third  countries.  Accordingly,  an  injury 
investigation was also conducted  with a view to  establishing whether the  increased 

dumping by the Chinese exporters had led to  further  injury  which would  warrant  a 

modification  of the measures in place in respect of the People's Republic of China. 

(b)  Total Community  consumption 

(40)  In  calculating  total  consumption  of  the  product  in  question  on  the  Community 
market,  the  Commission  added  Community  producers'  sales  in the  Community  of 
disposable flint lighters to the total  imports of these products  into the  Community, 
as declared  under  CN code  9613  10 00.  On this basis,  the  total  consumption  has 
grown between  1989 (i.e. the investigation  period of the original investigation) and 
1993 by 15%. 

19 

It  is  known,  however,  that  the  imports  under  CN  code  9613  10  00  do  not  only 
cover  disposable flint lighters but  also  disposable  piezo  lighters.  The  quantity  of 
imported  piezo  lighters  is not  exactly  known  and,  therefore,  it  is  not  possible  to 
assess  the  consumption  increase  due  to  the  imports  of  this  type  of  disposable 
lighters.  The Commission  made an attempt  to  differentiate  flint  and  piezo  lighters 
in global  import  statistics  on the basis  of Taric statistics  supposed  to  differentiate 
these  two  types  of  disposable  lighters  but  no  reliable  historical  data  could  be 
established on this basis. 

Nevertheless,  as far  as the  People's  Republic  of  China  is  concerned,  it  should  be 
noted  that  the  information  available  to  the  Commission  showed  that  no  piezo 
lighters were imported from that country up to and during the current  investigation 
period.  This means, as far as the People's Republic of China is concerned,  that no 
over-estimation of its market share for disposable flint lighters could occur since all 
imports  from  China under  that  CN  code  related  to  imports  of  the  product  under 
investigation. 

(c)  Factors relating to the dumped  imports 
(i)  Volume  and market share 

(41)  Between  1989  and  the  end  of  the  investigation  period,  imports  from  China 
Imported  quantities  were 
increased  substantially  when  compared  with  1989. 
indeed 9.6 million units in  1989, then 69.3 in  1990, 78.1 in  1991, 45.5 in  1992 and 
71.6 million units in 1993 (investigation period adjusted  to  12 months). 

20 

After  a  relative  decrease  in  1992  due  to  the  imposition  of  measures  in  1991, the 
imports  increased  by  a  much  higher  rate  than  consumption.  Consequently,  the 
market  share of Chinese imports increased  substantially,  i.e.  from  1.5%  in  1989 to 
11%  in  1991, then from 7% in  1992 to  10% in  1993 (investigation  period  adjusted 
to  12 months). 

(ii)  Prices 

(42)  In the context of this review investigation,  it is extremely important to note that the 
export  price  of  the  Chinese  lighters  dropped  by  around  23%  in  the  current 
investigation period when compared to the original investigation  period  (1989).  In 
this respect,  it  should  also be noted  that  this trend  was  established  on the  basis  of 
figures reported by the co-operating exporters and the co-operating  importer since, 
for  the  reasons  stated  in recital  33  above,  Eurostat  statistics  were  not  suitable  for 
the purpose of establishing export prices. 

(43)  The prices of Chinese lighters were also compared  with those  of lighters  produced 
in  the  Community  and  sold  by  the  Community  industry.  As  in  the  original 
investigation,  the Commission  considered  that  only those  lighters with  an equal  or 
almost equal amount  of gas, and therefore  a similar quantity of ignitions,  should be 
taken as a basis for this price comparison  exercise, which was made on the basis of 
a  representative  percentage  of  sales,  at  the  level  of  sales to  wholesalers  and  large 
retailers.  For  the  reasons  stated  in  recital  36,  which  are  also  relevant  in  this 
context,  no  adjustment  was  applied  to  take  account  of  other  alleged  physical 
and/or qualitative  differences. 

(44)  The  sales  price  of  the  imported  Chinese  disposable  lighters  was,  during  the 

investigation  period,  significantly  below the  average  sales  price  of the  comparable 

disposable lighters produced  by the Community  producers.  The weighted  average 

margin of price undercutting was found  to  amount  to  26% (expressed  on the basis 

of Community sales price). 

21 

(d)  Situation  of the Community  industry 
(i)  General 

(45)  The  lighter  market  is very  price  sensitive.  In  order  to  be  able  to  sell  or  to  keep 

market  share,  the  numerous  producers  and  buyers  on  the  market  tend  to  adjust 

their  prices  to  the  lowest  level  possible.  Faced  with  low  priced  dumped  imports 

from the People's Republic of China, the Community industry was forced  to  lower 

its  prices  in  order  to  try  to  maintain  market  share,  production  level  and  capacity 

utilisation. 

(ii)  Production, sales and market share 

(46)  Production  and  sales  of  the  Community  industry  remained  stable  between  the 

original  investigation  period  and the  current  investigation  period,  despite  a  certain 

improvement  noticeable  in  1990  and  1991.  However,  over  the  same  period,  in a 

growing  market,  its  market  share  decreased  by  9  percentage  points,  while  the 

market share held by Chinese imports grew by 8.5 percentage points. 

(Hi) Prices, profitability  and  employment 

(47)  Prices of the  Community  industry have,  on average,  dropped  when  comparing  the 
original  investigation  period  with  the  current  investigation  period.  A  decrease  in 
price was  indeed  the  only means to  keep  the  loss  of  market  share  to  a  minimum. 
Despite this decrease, the Community industry did not achieve this result. 

(48)  Since  the  original  investigation  period  the  financial  situation  of  the  Community 

industry as a whole  - after  a certain  improvement  in  1991 - deteriorated  up to  the 

end  of  the  current  investigation  period.  The  continued  price  fall  could  not  be 

offset  by  reductions  in  costs. 

In  1993,  the  average  sales  price  was  below  the 

average cost, including selling, general and administrative expenses. 

22 

(49)  The  Community  industry  has  made  considerable  efforts 

to  cope  with  the 
continuous  decrease  of  prices,  notably  by  reducing  the  number  of  its  employees 
between  the  original  investigation  period  and  the  current  investigation  period  by 
13%  but,  at  the  same  time,  maintaining  production  and  sales  in  order  to  remain 
viable. 

(e)  Conclusion on injury 

(50)  In these  circumstances,  it  is concluded  that  the  injury  suffered  by  the  Community 
industry  has  considerably  worsened. 
In  a  growing  market,  the  Community 
producers concerned  have lost market  share and their profitability  has  deteriorated 
in spite of severe cost reductions, including reduction  of jobs. 

F.  CAUSATION OF INJURY 

(51)  The  Commission  examined  whether  the  additional 

injury  suffered  by  the 

Community  industry  was caused  by the  Chinese  exporters'  increased  dumping  and 

whether other factors  may have caused or contributed to that  injury. 

(a)  Effect  of the dumped  imports 

(52)  In  examining  the  effects  of the  dumped  imports,  it  was  found  that  the  increasing 

volume  of  the  low  priced  dumped  imports  from  the  People's  Republic  of  China 

coincided with the loss of market  share, the price decreases and the deterioration in 

the financial situation of the Community industry. 

23 

(53)  Indeed,  between  the  original  investigation  period  and  the  current  investigation 
period  the  market  share  held  by  Chinese  imports  has  considerably  increased, 
namely  from  1.5%  to  10%, i.e.  8.5%  of total  consumption,  while the  Community 
industry's market share decreased by 9% of total Community consumption.  During 
the  same period,  the level of undercutting  by Chinese  exports  also  increased  from 
around  20%  before  the  imposition  of  the  measures  to  26%  in  the  current 
investigation period. 

Given that  the market  in question  is highly price  sensitive,  as  already  explained  in 
recital 45 above, it is clear that this substantial and increasing price undercutting by 
Chinese  dumped  imports,  with  consequentialy  increased  market  share,  has 
significantly  affected  the Community  industry,  both  in respect  of volumes  sold  by 
this  industry  on  a market  that  was  experiencing  growth  and  on  its  selling  prices, 
with the consequent impact on unit costs and  profit. 

Given,  in  addition,  that  the  dumping  margin  of  Chinese  imports  has  substantially 
increased during the same period, it is concluded that  such heavily dumped  imports 
have caused further  injury to the Community industry  concerned. 

(b)  Effect  of other factors 

(54)  The  Commission  examined  whether  factors  other  than  the  dumped  imports  had 
caused  or  contributed  to  the  material  injury  suffered  by  the  Community  industry, 
such as falling  exports to third countries by the Community  industry  or  an increase 
of imports from countries other than the People's Republic of China. 

(55)  Between  the  original  investigation  period  and  1993, exports  to  third  countries  by 

the  Community  industry  showed  an  overall  stable  trend  (in  volume,  index  basis 

1989 =  100,  1990 amounted  to  106,  1991 to  105,  1992 to  95  and  1993  to  100). 

This evolution cannot therefore  be considered  as a factor  having adversely  affected 

the Community industry. 

24 

(56)  Imports from countries other than the People's Republic of China showed  between 
1989  and  the  investigation  period  a  stable  market  share  at  around  25%  of  total 
consumption.  A more  detailed  analysis  showed  that  certain  countries  have  taken 
over  traditional  suppliers  now  subject  to  anti-dumping  measures  (other  than  the 
Chinese)  and  may  have  entered  the  market  due  to  an  aggressive  pricing  policy, 
which may have had an impact on the situation of the Community industry. 

This  is  confirmed  by  the  recent  lodging  of  a  complaint  and  initiation  of  an  anti 
dumping  proceeding  concerning  imports  of  disposable  flint  lighters  originating  in 
certain  third  countries  which  were  not  involved  in  the  original  proceeding? 
However,  the hypothetical existence of dumped  imports from other third  countries 
does not  detract from the fact  that  Chinese imports, having  dramatically  increased 
their  market  share by increased  undercutting  and  dumping,  should  be  considered, 
in isolation,  as a cause of further  material injury to the Community industry. 

(57)  One  importer  claimed  that  the  introduction  of  new  products  such  as  the  piezo 

disposable  lighter  and  the  flameless  refillable  lighter  had  adversely  affected  the 

Community  industry  by  contracting  demand  and  depressing  prices  for  disposable 

flint  lighters.  However,  these  allegations  were  not  supported  by  evidence 

indicating  that  purchases  of  these  new  products  by  Community  consumers  were 

replacing  those  of  disposable  flint  lighters. 

In  fact,  it  appears  that  the  product 

concerned  remained attractive, given the increased imports and  consumption. 

(58)  The  same importer  also  claimed  that  the  economic  recession  was  one  of the  main 

reasons for the injury  suffered  by the Community  industry.  As a result,  consumers 

were  allegedly  looking  for  the  lowest  priced  lighter  available.  Prices  have 

therefore  dropped,  it was argued,  and the Chinese lighters become  more  attractive 

to consumers. 

SeeOJNoC67,  18.3.1995. p. 3. 

25 

While  it  is  clear  that  Chinese dumped  prices  severely  undercut  the  Community 
industry's  prices  and  thus  affected  its  pricing  policy  and  profitability,  no 
substantiated  evidence  of  the  alleged  impact  of  the  economic  recession  on  the 
Community lighter market as a whole,  and on the Community industry's situation 
in particular, has been provided.  Indeed, while such impact, if any, would also be 
noticeable  on  the  overall  Community  market,  it  should  be  stressed  that  the 
consumption of disposable flint lighters in the Community has increased (see recital 
40 above).  In  these  circumstances,  the  argument  that  the  economic  recession 
would be responsible for the injury suffered by the Community industry cannot be 
accepted. 

(59)  The same importer claimed that the difficult  situation of the Community  industry 

also  related to the fact that, compared with refillable  lighters, the disposable  flint 
lighters  it  was  producing  were  environmentally  unfriendly  products  and  that the 

increasing environmental awareness of consumers in the Commumty made it more 

difficult  to  sell  such  disposable  products,  on  which governments  were  moreover 

considering the imposition of so-called "Ecb taxes". 

In  this  context,  it  is  worth  noting  that  although  imported  lighters  are  equally 
environmentally  unfriendly,  they  remain  the  subject  of  intense  trading.  The 
consumption  of  disposable  lighters  in  general  also  continues  to  increase. 
In 
addition, the above argument based on the increasing environmental  awareness  of 
consumers was not supported by any clear evidence that a significant proportion of 
the  Community  consumers  was  now  showing  a  marked  preference  for  refillable 
lighters. 

(60)  Finally,  this  importer  also  claimed  that  any  injury  to  the  Community  industry 

should be significantly diminished because the increase in imports from the People's 
Republic of China, noticeable in 1993, was due to developments on the Italian ancf 
U.K.  markets,  namely the  abolition  of  excise  taxes  on  disposable  lighters which, 
until the end of 1992, were limiting the consumption of these products. 

26 

This argument cannot be accepted.  Indeed, nothing explains why the abolition of 
excise  taxes  in  the  said  Member  States  should  result  in  an  increase  in  imports 
which  was  significant  with  regard  to  products  of  Chinese  origin  only.  In  the 
absence of unfair trading practices, any competitive suppliers would have been able 
to enter, and compete on, the expanding Italian and U.K.  markets.  The fact that 
Chinese dumped imports gained a substantial share of the market in Italy and the 
U.K. underlines the specific impact of the Chinese dumped imports, which resulted 
in  the  Chinese  achieving  a  larger  market  share  by  lower  prices.  These 
circumstances do not therefore warrant a modification to the findings regarding the 
causation of injury. 

(c)  Conclusion on causation 

(61)  In  view  of  the  above,  it  is  evident  that  Chinese  dumped  imports  have  put  a 
considerable  downward  pressure  on  disposable  flint  lighter  prices  in  the 
Community market. 

The  effect  of  other  factors,  such  as  imports from other  third  countries,  on  the 
injury sustained by the Community industry cannot be totally set aside.  However, 
given the various elements set out above and especially the significant  increase in 
quantities  imported  at  dumped  prices  from  the  People's  Republic  of  China, 
combined  with the greater  level of price undercutting by Chinese exporters, it is 
concluded  that  the  dumped  imports from the  People's  Republic  of  China  have, 
taken in isolation, caused further  injury  to the Community industry,  and that this 
injury was material. 

27 

G.  COMMUNTTY INTEREST 

(62)  In the previous investigations, the adoption of measures was considered  to  be in 
the interest of the Community.  Since no new arguments have been made which 
could lead to a reconsideration of this position, the findings of Regulation (EEC) 
No 3433/91 in this respect are confirmed. 

^ 

H.  DUTY 
(a)  Injury elimination level 

(63)  In the original investigation, for the purpose of establishing the injury elimination 
level, it was considered that any measure should allow the Community industry to 
cover its costs of production and to achieve a reasonable profit,  namely  15% on 
sales turnover.  This profit  margin was considered  as the minimum necessary to 
finance  new investments in manufacturing facilities and research and development. 
It was also considered that the comparison  should be restricted  to  those models 
with an equal or almost equal amount of gas,  and therefore  a similar quantity of 
ignitions. 

In the absence of any new substantiated argument in respect of the profit that the 
Community industry should be allowed to achieve, it was considered  appropriate 
to  follow  the  same  approach  in  the  current  investigation  as  in  the  original 
investigation.  For the reasons stated in recital 36,"which are also relevant in this 
context, it was considered that alleged physical differences,  other than the amount 
of  gas,  should  not  be  taken  into  account  for  the  purpose  of  determining 
comparable models. 

28 

On  the  above  basis,  the  comparison  showed  that,  in  order  to  eliminate  injury, 
Chinese CIF prices would have to increase by 96.6%. 

(64)  Since  the  injury  elimination  level  is  higher  than  the  dumping  margin,  the  duty 

should be based on the dumping margin found. 

(b)  Form of the duty 

(65)  Since prices  of the  Chinese imported  disposable  flint  lighters  steadily  decreased 
after  the  imposition  of  the  measures  in  1991,  it  is  highly  foreseeable  that  an 
increased  ad  valorem  duty  would  again  lose  its  effectiveness  within  a  relatively 
short time.  Therefore,  a simple amendment to the current ad valorem duty does 
not appear to be appropriate.  The number of different  types of lighters, i.e. naked, 
printed  one  side,  printed two  sides,  one  colour,  multiple  colours,  etc.,  makes it 
virtually impossible to fix a minimum price level for disposable lighters. 

It is therefore considered appropriate to amend the measure in force by imposing a 
specific duty per lighter (namely 0.065 ECU per piece).  In this respect, it has to be 
noted  that  by applying such a duty which  stays within the limits of the dumping 
margin,  the  additional  value  of  special  features  will  not  be  penalised.  In  other 
words,  no  duty  will be applied  to  the  added  value concerning  printing  or  other 
special items which are at present very exceptional in the case of Chinese imports. 

29 

L  PERIOD  OF  VALroiTY  OF  THE  REGULATION 

(66)  This  Regulation  should  be  considered  as  an  amendment  to  Regulation  (EEC) 
N° 3433/91 within the meaning of Article 15.(1) of Regulation (EEC) No 2423/88 
only insofar as the People's Republic of China is concerned.  The measure imposed 
on imports from the People's Republic of  China  should,  therefore,  lapse  after  a 
period  of five years starting from the date  on which this Regulation  enters into 
force,  subject to the provisions of Regulation (EC) No 3283/948, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1.  The first phrase of Article 1(2) of Regulation (EEC) N° 3433/91 shall be replaced 

by the following: 

"2.  The rate of the duty, applicable to  the net, free-at-Community frontier price 
before duty, or the amount of duty per lighter, shall be set as follows: " 

2. 

Paragraph (b) of Article 1(2) of Regulation (EEC) N° 3433/91 shall be replaced by 
the following: 

M(b)  0.065 ECU per lighter for the products originating iiithe People's Republic 

ofChina;" 

*  OJ No L 349, 31.12.1994, p. 1. 

30 

Article 2 

This Regulation shall enter into force on the day following  its publication in the  Official 
Journal of the European Communities. 

This  regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 

States. 

Done at Brussels 

For the Council 

ISSN 0254?1475 

COM(95) 141  final 

DOCUMENTS 

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ISBN 92-77-87791-X 

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