Commission Regulation (EC) No 971/98 of 7 May 1998 initiating an investigation concerning the alleged circumvention of the anti-dumping duty imposed by Regulation (EEC) No 3433/91 on imports of gas-fuelled, non-refillable pocket flint lighters originating in the People's Republic of China by imports of the same lighters consigned from Hong Kong, Macao and Taiwan and by imports of certain disposable refillable pocket flint lighters originating in the People's Republic of China and making such imports subject to registration
Date: 1998-05-07
Institutions: European Commission
Subjects: EU control, anti-dumping duty, import, manufactured goods, non-durable goods, originating product

L 135/38

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Official Journal of the European Communities

8. 5. 98

COMMISSION REGULATION (EC) No 971/98

of 7 May 1998

the
initiating an investigation concerning the alleged circumvention of
anti-dumping duty imposed by Regulation (EEC) No 3433/91 on imports of
gas-fuelled, non-refillable pocket
lighters originating in the People’s
Republic of China by imports of the same lighters consigned from Hong Kong,
Macao and Taiwan and by imports of certain disposable refillable pocket flint
lighters originating in the People’s Republic of China and making such imports
subject to registration

flint

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 384/96 of
22 December 1995 on protection against imports from
countries not members of the European Community (1), as
last amended by Regulation (EC) No 905/98 (2), and in
particular Articles 13 and 14 thereof,

After consulting the Advisory Committee,

Whereas:

(1)

(a) REQUEST

The Commission has received a request pursuant to
Article 13(3) of Regulation (EC) No 384/96 (here-
inafter referred to as ‘the Basic Regulation’) to in-
vestigate the alleged circumvention of
the anti-
dumping duty imposed by Council Regulation
(EEC) No 3433/91 (3), as last amended by Regula-
tion (EC) No 423/97 (4), on imports of gas-fuelled,
non-refillable pocket flint lighters (hereinafter also
‘disposable lighters’) originating in the People’s
Republic of China. According to the request, the
aforementioned anti-dumping duty is allegedly
circumvented by:

(i) imports of disposable lighters originating in the
People’s Republic of China which have been
transhipped via Hong Kong, Macao and Taiwan
respectively;

(ii) imports of disposable lighters originating in the
People’s Republic of China which, after having
been the subject of slight modifications, are
declared as refillable and/or reflintable lighters
although, in practical terms, they are not.

Regulation and where justified, to extend the above
anti-dumping duty to them.

(b) APPLICANT

(2)

The request was lodged by the European Lighters
Manufacturers’ Federation on 24 March 1998 on
behalf of the following Community producers:

(3)

— Bic SA, Clichy Cedex, France,
— Flamagas SA, Barcelona, Spain,
— Tokai

Seiki

GmbH, M(cid:148)nchengladbach,

Germany.

According to the request, these companies are all
manufacturers of disposable lighters and their
collective output represents approximately 60 % of
the total Community production of
the like
product.

(c) PRODUCT

The product concerned in the original investigation
and in the review investigation (hereinafter ‘the
investigation’), which resulted in an
previous
amendment of the anti-dumping duty in force by
Council Regulation (EC) No 1006/95 (5), was gas-
fuelled, non-refillable pocket flint lighters or dis-
posable lighters. Disposable lighters are currently
classifiable under CN code ex 9613 10 00. This
CN code is given for information only.

As described in more detail below, the request to
initiate the current investigation alleges, inter alia,
that the existing measures are being circumvented
by altering disposable lighters originating in the
People’s Republic of China and the only purpose
of these alterations is to cause custom authorities to
classify such imported lighters under a customs
tariff heading different
from that covering dis-
posable lighters.

(d) REGISTRATION

In view of the fact that circumvention is alleged to
take place, inter alia, by imports of disposable
lighters originating in the People’s Republic of
China which are declared as refillable and/or re-
flintable lighters although in practical terms, they

Furthermore, a request was made to make these
imports
to registration by the customs
authorities pursuant to Article 14(5) of the Basic

subject

(4)

(1) OJ L 56, 6. 3. 1996, p. 1.
(2) OJ L 128, 30. 4. 1998, p. 18.
(3) OJ L 326, 28. 11. 1991, p. 1.
(4) OJ L 65, 6. 3. 1997, p. 1.

(5) OJ L 101, 4. 5. 1995, p. 38.

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Official Journal of the European Communities

L 135/39

are not, registration of imports falling within CN
code ex 9613 20 90 (refillable lighters) should be
limited to lighters with an average
free-at-
Community-frontier, duty unpaid value per piece
of less than ECU 0,5 (low-value lighters). This lim-
itation of registration appears reasonable since it
can be assumed that lighters with a price per piece
of ECU 0,5 and more are non-disposable.

Registration should also cover imports into the
Community of disposable lighters
from Hong
Kong, Macao and Taiwan.

The purpose of registration is to ensure that, should
the anti-dumping duty applicable to imports of
disposable lighters originating in the People’s
Republic of China be extended to imports of
as non-
lighters
altered
disposable and originating in the People’s Republic
of China and/or to disposable lighters consigned
from Hong Kong, Macao and Taiwan, it may be
collected from the date of such registration.

low-value

declared

(e) EVIDENCE

(5)

request

contains

sufficient

prima facie
The
evidence, in accordance with the requirements of
Article 13 of the Basic Regulation, to indicate that
the anti-dumping duty on imports of disposable
lighters originating in the People’s Republic of
China is being circumvented.

(6)

The evidence submitted is as follows:

A. With regard to imports of disposable lighters
allegedly originating in the People’s Republic
of China which have been transhipped via
Hong Kong, Macao or Taiwan:

(i) According to the request, there has been a
change in the pattern of trade between third
countries
and the Community resulting
from a practice for which there is insuf-
ficient due cause or economic justification
other
the anti-
dumping duty.

than the imposition of

figures,

lighters

originating

that direct

The request contains evidence, based on
imports of
Eurostat
disposable
the
in
People’s Republic of China have decreased
by more than 70 % between 1994 and 1997
(first nine months of 1997 extrapolated to an
the
annual basis),
previous investigation. These imports appear
to have been partially replaced by imports of
lighters
from Hong Kong, Macao and
Taiwan which have more than trebled over
the same period.

initiation of

i.e. after

Allegedly,
of
latter
Chinese origin and are simply transhipped

imports

these

are

through Hong Kong, Macao and Taiwan
respectively. This allegation is strengthened
by the coincidence in time between the
substantial decrease of imports directly from
the People’s Republic of China and the
increase of imports, apparently, from three
new origins.

the

the

that

applicant
disposable

provided
(ii) Furthermore,
evidence
lighters
imported from Hong Kong, Macao and
Taiwan respectively are sold at lower prices
than those exported from the People’s
to the Community
Republic of China
during the investigation period concerning
the previous investigation. Therefore,
it is
alleged that dumping is taking place at an
even higher level than was found in the
previous investigation and that the remedial
effects of the anti-dumping duty are being
undermined in terms of prices and quant-
ities of the disposable lighters imported via
Hong Kong, Macao and Taiwan respectively.

B. With regard to alterations in the disposable
them to be classified

lighters which causes
under a different customs tariff heading

(i) The request contains evidence that part of
the change in the pattern of trade results
from the fact that imports of Chinese dis-
posable lighters have been replaced to a
large extent by lighters which have been
modified in such a way that they appear to
be classifiable under the Tariff heading for
non-disposable lighters. Imports of so-called
non-disposable lighters originating in the
People’s Republic of China have increased
significantly (by more than 400 %) over the
period 1994 to 1997 (first nine months of
1997 extrapolated to an annual basis).

that,

in fact,

The complaint alleges
the
disposable lighters have been simply altered
by the addition of a valve, which should
allow for the product
to be refilled and,
therefore, re-used. However, technical tests
show that it is neither practical nor eco-
nomically viable to refill and re-use these
altered lighters. Finally, Community im-
porters do not advertise such lighters as re-
fillable to their buyers.

request, under

According to the
these
circumstances, there is no economic justi-
fication for the process of adding a valve to
the lighter. The only reason for altering the
lighters would be the existence of an anti-
dumping duty on imports of disposable
lighters originating in the People’s Republic
of China.

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Official Journal of the European Communities

8. 5. 98

the

the

remedial

effects of

(ii) Furthermore, the request contains evidence
anti-
that
dumping duty are being undermined,
in
terms of prices and quantities, by imports of
i.e.
the so-called non-disposable lighters,
altered as described above, originating in the
People’s Republic of China, and that there is
dumping in relation to the normal value
established in the previous
investigation.
Indeed, the applicant provided evidence that
the so-called non-disposable lighters are
sold to the Community at lower prices than
the normal
established in the
previous investigation. This is despite the
addition of a valve which should normally
increase production costs and prices.

values

(7)

(8)

(9)

(f) PROCEDURE

In the light of
the evidence contained in the
request, the Commission has concluded that suf-
ficient evidence exists to justify the initiation of an
investigation pursuant to Article 13(3) of the Basic
Regulation, and to make imports of the lighters
mentioned in recital 4 subject to registration in
accordance with Article 14(5) of the said Regula-
tion.

(i) Questionnaires

In order to obtain the information it deems neces-
sary for its investigation, the Commission will send
questionnaires to the exporters and the producer
mentioned in the request, and the two exporters as
well as the producer in the People’s Republic of
China who participated in the previous investiga-
tion.
Information, as appropriate, may also be
sought from Community producers and importers.

Other interested parties which can show that they
are likely to be affected by the outcome of the
investigation, should request a questionnaire from
the Commission within 15 days of the publication
of this Regulation in the Official Journal of the
European Communities. Any request for question-
naires must be made in writing to the address
mentioned in Article 3(3), and should indicate the
name, address, telephone and fax numbers of the
requesting party.

The authorities of the Peoples’s Republic of China,
Hong Kong, Macao and Taiwan will be notified of
the initiation of
the investigation and provided
with a copy of the questionnaire and the request.

(ii) Certificates of non-circumvention

(10)

In accordance with Article 13(4) of the Basic Regu-
lation, certificates, exempting the imports of the
product concerned from registration or measures,
may be issued by the customs authorities to im-
porters when the importation does not constitute
circumvention.

for

the Community
authorisations

Since the issue of this certificate requires the prior
institutions,
authorisation of
requests
be
should
addressed to the Commission as early as possible in
the course of the investigation so that they may be
considered on the basis of a thorough appraisal of
their merits.

such

(11)

(12)

(g) TIME LIMIT

In the interest of sound administration, a period
should be fixed within which interested parties,
provided they can show that they are likely to be
affected by the results of the investigation, may
make their views known in writing. A period
should also be fixed within which interested parties
may make a written request for a hearing and show
that there are particular reasons why they should be
heard.

(h) NON-COOPERATION

Furthermore, it should be stated that, in cases in
which any interested party refuses access to, or
otherwise does not provide necessary information
within the time limit, or significantly impedes the
investigation, findings, affirmative or negative, may
be made in accordance with Article 18 of the Basic
Regulation, on the basis of the facts available,

HAS ADOPTED THIS REGULATION:

Article 1

An investigation, pursuant to Article 13 of Regulation
(EC) No 384/96, is hereby initiated concerning imports
into the Community of

(a) refillable pocket flint lighters falling within CN code
ex 9613 20 90 originating in the People’s Republic of
China; and

(b) gas-fuelled, non-refillable pocket flint lighters falling
within CN code ex 9613 10 00 consigned from Hong
Kong, Macao and Taiwan.

Article 2

The customs authorities are hereby directed, pursuant to
Articles 13(3) and 14(5) of Regulation (EC) No 384/96, to
take the appropriate steps to register the imports into the
Community of

(a) refillable pocket

flint

lighters with a

free-at-
Community-frontier, duty unpaid value per piece of
falling within CN code
less
ex 9613 20 90 (TARIC code 9613 20 90 10)
and
originating in the People’s Republic of China; and

than ECU 0,5

(b) gas-fuelled, non-refillable pocket flint lighters falling
within CN code
(TARIC code
9613 10 00 10) consigned from Hong Kong, Macao
and Taiwan.

ex 9613 10 00

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L 135/41

Registration shall expire nine months following the date
of entry into force of this Regulation.

tion in the Official Journal of the European Commun-
ities.

Imports shall not be subject to registration where they are
accompanied by a customs certificate issued in ac-
cordance with Article 13(4) of Regulation (EC) No 384/96.

Article 3

All interested parties, if their representations are to
1.
be taken into account during the investigation, must
make themselves known, present their views in writing,
submit
information and apply to be heard by the
Commission within 40 days from the date of publication
of this Regulation in the Official Journal of the Euro-
pean Communities. This time limit applies to all
in-
terested parties, including the parties not named in the
request, and it is consequently in the interest of these
parties to contact the Commission without delay.

2. Questionnaires
requested from the
should be
Commission within 15 days of publication of this Regula-

3.
Any information relating to the matter, any request
for a hearing or for a questionnaire as well as any request
for authorisation of certificates of non-circumvention
should be sent to the following address:

European Commission,
Directorate-General for External Relations (Unit I-C-1),
DM 24 8/38
Rue de la Loi/Wetstraat 200,
B-1049 Brussels
Fax No:

(32 2) 295 65 05.

Article 4

This Regulation shall enter into force on the day fol-
lowing 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, 7 May 1998.

For the Commission

Leon BRITTAN

Vice-President