Proposal for a Council Regulation (EC) imposing a definitive anti-dumping duty on imports of gas-fuelled, non-refillable pocket flint lighters originating in Japan
Date: 1998-10-29
Institutions: European Commission
Subjects: Japan, anti-dumping duty, import, non-durable goods, tobacco industry

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.10.1998 
COM(1998) 619 final 

Proposal for a 

COUNCIL REGULATION  (EC) 

imposing a definitive  anti-dumping duty on imports of 

gas-fuelled,  non-refillable pocket flint  lighters originating in Japan 

(presented by the  Commission) 

i. 

2. 

3. 

4. 

5. 

^ 

EXPLANATORY  MEMORANDUM 

Attached  is a  proposal  for  a Council  Regulation  maintaining  the  1991  definitive 
anti-dumping  duly  on  imports  of  gas-fuel led,  iion-rcllllublc  pocket  Hint  lighters 
originating  in  Japan. 

review 

investigation  was 

The 
initiated  on  30  November  1996  under 
Article  11(2)  and  11(3)  of  the  Basic  Anti-dumping  Regulation.  In  accordance 
with  Article  11(2) the  measure  remains  in  force  pending the outcome  thereof. 

The  proposal  to  maintain  the  definitive  anti-dumping  duty  is  essentially  based 
on  the  existence  of  huge  idle  capacity  at  the  exporter's  plant  in  Japan,  and  the 
likelihood  that  the  Community  industry  would  suffer  serious  injury  if  that 
capacity  were  used  for  exports  to  the  European  Community,  especially  if  the 
prices  of  such  exports  undercut  the  Community  industry's  prices  by  43  % 
(established  for  the  investigation  period)  or more.  In this  regard  the  existence  of 
a  plant  in Mexico, developed  by  a subsidiary  of the exporter  almost  immediately 
after  the  imposition  of the  measure  under  review,  and  the  subsequent  imposition 
of  an  anti-dumping  measure  (price  undertaking)  on  imports  originating  in 
Mexico  in  March  1997, were also taken  into  account. 

The  co-operating  interested  parties  were  informed  of  the  essential  facts  and 
considerations  on  the  basis  of  which  the  Commission  services  intended  to 
recommend  that  the  definitive  anti-dumping  duty  be  maintained  at  its  current 
level.  Subsequent  to  this  disclosure  no  comments  were  received  which  could 
alter  these  facts  and  considerations. 

The  Anti-Dumping  Advisory  Committee  was  consulted  in  April  1998.  The 
proposal  of the  Commission  services  was  not  approved  by  an  absolute  majority; 
however,  six  Member  States  (Belgium,  France,  Greece,  the  Netherlands, 
Portugal  and  Spain) voted  in favour  of  it. 

The  consultation  was  followed  by  an  exchange  of  views  in writing  on  the  issues 
raised  by  Member  States  that  had  not  voted  in  favour  of  the  proposal  of  the 
Commission  services. 

As  the  investigation  exceeded  the  normal  duration  provided  for  in  Article  11(5) 
by  almost  a  year  and  since  this  delay  cannot  be  attributed  to  any  of  the  co 
operating  parties,  the  proposal  makes  provision  for 
the 
maintained  measure  to  be  reduced  by  one  year.  This  approach  is  in  conformity 
with  the  Judgment  of  the  Court  of First  Instance  of  8 July  1998  (Case  T-232/95, 
Committee  of  European  Copier  Manufacturers  (CECOM)  v.  Council  of  the 
European  Union). 

the  duration  of 

A 

Proposal  for a 

C^)l  , N (1L  K.^C]JI -ATK )N  (fC) 

imposing  a  definitive  anti-dumping  duty  on  imports  of 

gas-fiullcd,  iion-refillabk*  pocket  flint  lighters  originating  in  .Japan 

TI IE COUNCIL  OF THE  EUROPEAN  UNION, 

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  dumped  imports  from  countries  not  members  of  the  European 

Community  ('), and  in particular Articles  11 (2) and  (3) thereof, 

Having  regard  to  the  proposal  submitted  by  the  Commission  after  consulting  the 

Advisory  Committee, 

Whereas: 

A. 

PROCEDURE 

1.  Measures  in  force 

(1)  By  Council  Regulation  (EEC)  No  3433/91  (2),  hereinafter  referred  to  as  the 

"definitive  duty  Regulation",  the  Council  imposed  a  definitive  anti-dumping 

duty  on  imports  of  gas  fuelled,  non-rellllable  pocket  Hint  lighters  originating  in 

Japan,  the  People's  Republic  of China,  the  Republic  of  Korea  and  Thailand.  As 

regards Japan, the duty  rate was set at  35.7 %. 

OJ No L 56, 6. 3. 1996, p. 1. Regulation as amended by Regulations (EC) No 2331/96 (OJ No L 
317,6. 12. 1996, p. 1) and (EC) No 905/98 (OJ No L 128,30.4.  1998, p. 18). 
OJNoL326, 28.  II.  1991, p. I. 

«b^ 

(2)  The definitive  duly  Regulation  was amended  with  respect  to China  in  1995 (l). 

In as far  as  Thailand  is concerned,  it was  replaced  by Council  Regulation  (EC) 

No 423/97 in March  1997 (4). 

2. 

Initiation of a review 

(3) 

In May  1996 the Commission published a notice of the impending expiry of the 
measures  in  force  concerning  Japan  and  the  Republic  of  Korea  (5).  After  this 

publication, the Commission  received a request  for a review pursuant to Article 
11(2) of  Council  Regulation  (EC) No  384/96  (6), hereinafter  referred  to  as the 

"Basic Regulation",  with regard to imports of gas-fuelled,  non-refillable  pocket 

Hint lighters originating  in Japan,  lodged  by the European  Federation  of Lighter 

Manufacturers  on  behalf  of  BIC  S.A.  and  Hamagas  S.A..  Subsequently  this 

request  received  the  support  of  Swedish  Match  S.A..  BIC  S.A.,  Flamagas  S.A. 

and Swedish Match S.A. represent almost the totality  of Community  production 

of the product concerned. 

(4)  The  request  contained  sufficient  prima  facie  evidence  that  the  expiry  of 

measures  would  be  likely  to  result  in  a recurrence  of  dumped  imports  causing 

injury.  Evidence  of the presence of under-utilised  capacity  in  Japan  as well  as 

evidence that imports from  Japan would have an immediate depressing effect  on 

the prices of the Community  producers  supported  this alleged  likelihood. It was 

further  alleged  that  this  situation  would  exacerbate  the continuing  vulnerability 

of the Community  industry. 

Council  Regulation (EC) No  1006/95, OJ No L  101, 4. 5.  1995, p. 38 
OJNoL65,  6. 3.  1997, p. I. 
OJNoC  155,30.5.  1996, p. 6. 
OJNoL56,  6. 3.  1996, p.I. 

(5)  Therefore,  the  Commission  announced  the  review  of  the  definitive  duty 

Regulation  in  respect  of Japan (7). This  review  was opened  in  accordance  with 

Articles  11(2)  and  11(3)  of  the  Basic  Regulation,  as  an  interim  review  also 

seemed  to  be  appropriate.  As  regards  Korea,  the  measure  was  allowed  to 

expire (8). 

3.  Review investigation 

(6)  The  Commission  officially  advised  the  only  producer  in  the  exporting  country 

known  to  be  concerned,  Tokai  Corporation,  its  related 

importer  in  the 

Community,  Tokai  Seiki  GmbH,  the  representatives  of  the  exporting  country 

and the complainants. 

(7)  The  parties  directly  concerned  were given  the opportunity  to  make  their  views 

known  in  writing  and  to  request  a hearing.  One  of the  complainants  requested 

and was granted a hearing. 

(8)  The  Commission  sent  questionnaires  to  all  parties  known  to be  concerned  and 

received detailed information  from the complainant Community producers, their 

subsidiaries,  the  Japanese  exporter  and  its  related  importer  located  in  the 

Community. 

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

purpose  of the  investigation  and  carried  out  verifications  at  the  premises  of the 

following companies: 

OJNoC361,30.  II.  1996, p.3. 
OJ No C 360 of 29.  11.  1996, p. 2. 

( 'ommunHy producers and their subsidiaries 

- BIC S.A. (the BIC group), Clichy, France, 

- BIC BJ 75, Redon, France, 

- BIC Deutschland GmbH & Co., Ettlingen, Germany, 

- BIRO BIC Ltd, London, UK, 

- Laforest  BIC S.A., Tarragona, Spain, 

- Swedish  Match Lighters B.V., Assen, Netherlands, 

- Swedish  Match Lighters (including Cricket SA), Rillieux-la-Pape, France, 

- Arnold  André GmbH & Co., KG, Blinde, Germany, 

- Flamagas S.A.,  Barcelona and  Llinas del Valle, Spain. 

Producer in the country of origin 

- Tokai Corporation Japan, Tokyo, Japan. 

(10)  For the purpose of the dumping, injury  and Community  interest  determinations, 

the geographical  scope of the investigation was the Community of 15. 

(11)  The  investigation  of  dumping  covered  the  period  from  1 January  1996  to  30 

September  1996  (hereinafter  referred  to  as  the  'investigation  period').  The 

examination  of  injury  covered  the  period  from  1992  up  to  the  end  of  the 

investigation  period. 

(12)  The investigation exceeded the normal time period provided  for  in Article  11(5) 

of  the  Basic  Regulation.  This  was  due  to  the  fact  that  the  Commission 

considered  that  the  data  gathered  and  examined  initially  were  not  sufficient  to 

be  used  as  a  basis  for  a  new  anti-dumping  duty  and  that,  for  an  accurate 

assessment  of the  likelihood  of  recurrence of  injurious  dumping,  a  verification 

visit  to  the  exporter  had  to  be  carried  out  at  an  advanced  stage  of  the 

investigation,  faking  into account  thai Article  I  1(5) protects  the interests of the 

exporter  and  that,  since  the  anti-dumping  measure  under  review  remained  in 

force  pending  the  investigation,  the  extension  of  the  investigation  was  to  its 

detriment,  any  measure  maintained  or  imposed  as  a result  of  the  investigation 

should  remain  in  force  for  a shorter  period  of time than  foreseen  by  the  Basic 

Regulation. 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

/. 

Product concerned 

(13)  The  products  under  consideration  are  gas-fuelled,  non-refiliable  pocket  flint 

lighters (hereinafter  referred  to as  "disposable  Hint  lighters")  falling  within  CN 

code ta 9613  10 00. 

- Request for  inclusion of other lighters 

(14)  It should  be recalled  in this respect that there are other disposable lighters on the 

market  (so  called  electronic  or  piezo  lighters)  which  are  not  subject  to  anti 

dumping  measures.  Two months  after  the  opening  of  the  review  investigation, 

Swedish  Match  S.A.  made  a  request  to  extend  the  scope  of  this  review 

investigation  to  electronic  (or  piezo)  lighters  arguing  that  gas-fuelled,  non-

refillable  pocket  flint  lighters  and  gas-fuelled,  non-re tillable  electronic  lighters 

(hereinafter  "electronic lighters") were forming one single category of product. 

(15)  As  regards  this  request,  it  should  be  recalled  that  the  proceeding  -  opened  in 

April  1990 - concerns gas-fuelled,  non-refillable  pocket flint  lighters and that it 
has  already  been  assessed  (9)  that  the  (basic)  technical  characteristics  of 

electronic  lighters were quite different  from  those of the disposable flint  lighters 

currently  subject  to  anti-dumping  duties.  The  request  did  not  contain  any 

evidence  showing  that  this conclusion  was  no  longer  appropriate.  In  particular, 

it did  not  show  any  changes in the  (basic)  technical  characteristics,  such  as the 

ignition  system,  of  either  type  of  lighters,  which  could  have  invalidated  the 

findings of the definitive  duty Regulation. 

(16)  As  the  evidence  that  was presented  was  insufficient  to justify  the  inclusion  of 

electronic lighters in the investigation, and the request was made belatedly by a 

party that had supported the request for a review without reservation, the request 

for an extension of the scope of the review investigation could not be granted. 

See  in  particular  Council  Regulation  (EEC)  No  3433/91  which  confirms  the  provisional 
findings  laid down  in  recital  11 to  Council  Regulation  (EEC)  1386/91  (OJ No  L  133, 28. 5. 
1991, p. 20). 

- Different sizes and models 

(17)  Finally,  it should be noted that the product  under consideration  is  manufactured 

in different  sizes  and  models.  All  these  disposable  Hint  lighters  have  the  same 

basic technical  characteristics  and  the  same  basic  application,  and  perform  the 

same  function.  As  in  previous  investigations,  the  whole  range  of  models  of 

disposable  flint  lighters  was,  therefore,  considered  as  forming  one  single 

category of product. 

2. 

Like product 

(18)  As regards the disposable flint  lighters produced and sold domestically in Japan, 

the investigation  showed  that  such products were in all respects  identical  to, or 

closely  resembling,  those  exported  to  the  Community  from  the  country  in 

question. 

(19)  The  investigation  also  established  that  the  disposable  flint  lighters  imported 

from  the  country  concerned,  on  the  one  hand,  and  those  produced  by  the 

Community  industry  and  sold  in  the  Community  market,  on  the  other  hand, 

possess similar basic technical characteristics and are intended for the same use. 

The  disposable  flint  lighters  produced  and  sold  by  the  Community  industry 

should therefore be regarded as like products to those imported from the country 

concerned. 

(20)  Accordingly,  it  was  concluded  that  the  disposable  flint  lighters  produced  and 

sold  in the Community,  as well  as those produced  and  sold  in Japan  should  be 

regarded  as  like  products,  within  the  meaning  of  Article  1 (4)  of  the  Basic 

Regulation, to those exported to the Community  from  Japan. 

C.  DUMPING 

/.  Normal vaine 

(21)  As  in  the  original  investigation,  Tokai  Corporation  was  the  sole  co-operating 

exporting Japanese producer.  During the investigation  period  it sold 20  different 

models  of  the  product  concerned  on  its  domestic  market.  Only  two  of  those 

models were exported to the Community. 

(22)  It was found  that this exporter's overall domestic sales of the product  concerned 

during  the  investigation  period  were  representative  since  the  total  volume  of 

such sales exceeded  the threshold of 5 % of export  sales provided  for  in Article 

2(2) of the Basic  Regulation. Domestic sales of each of the two product  models 

exported  to the Community  were also  representative  because they  met the same 

5 % criterion. 

(23)  In  accordance  with  Article  2(4)  of  the  Basic  Regulation  the  Commission  also 

had  to  determine  whether  domestic  sales  of  each  model  were  made  in  the 

ordinary  course of trade by looking at the proportion  of profitable  sales to total 

sales.  The  investigation  showed  that  all  domestic  sales  made  during  the 

investigation  period  were profitable.  Consequently,  normal  value was based  on 

the average weighted  sales price of all  domestic  transactions  of the two models 

in question. 

2. 

Export price 

(24)  The  totality  of  the  export  sales  made  by  the  exporter  concerned  during  the 

investigation  period  was  made  to  a  related  company  in  the  Community.  The 

export  prices were therefore  constructed,  in accordance  with  Article  2(9) of the 

Basic  Regulation,  on  the  basis  of  resale  prices  to  the  first  independent  buyer 

adjusted  to  take  account  of  all  costs  incurred  between  importation  and  resale 

including  customs and  anti-dumping  duties and  a 5 % profit  margin.  The  latter 

was established  on the basis of the profit  margins considered  reasonable  in this 

business sector for unrelated importers. 

(25)  Where  cost  allocations  for  importers'  general  administration  and  selling 

expenses  were necessary  in the  construction  of export  prices, these  were  made 

on the basis of turnover. 

3. 

Comparison and dumping margin 

(26)  In  accordance  with  Articles  2(10)  and  2(11)  of  the  Basic  Regulation,  the 

weighted  average  normal  value  per  model  was  compared  with  the  weighted 

average  export  price  per  model,  at  ex-factory  level  and  at  the  same  level  of 

trade. For the purpose of a fair  comparison, adjustments  were  granted  for  those 

differences  affecting  price  comparability  for  which  satisfactory  evidence  was 

supplied. Thus, adjustments  were made in respect of transport,  insurance, credit 

and packaging. 

(27)  The  comparison  of  normal  value  and  export  prices  showed  the  existence  of 

dumping.  The  dumping  margin  expressed  as  a  percentage  of  the  CIF 

Community  frontier  value of the imports was found  to be 208.1 %. 

I). COMMUNITY  INDUSTRY 

(28)  In  the  present  investigation,  Tokai  Seiki  GmbH,  a  subsidiary  of  Tokai 

Corporation,  a  producer  of  the  product  concerned  in  the  Community  and  the 

only  co-operating  importer  in  the  Community  of  disposable  flint  lighters 

originating  in  Japan,  was  not  included  in  the  definition  of  the  Community 

industry  in accordance  with Art. 4 (1) (a) of the  Basic Regulation  as it was the 

sole  importer  of  the  product  under  consideration  and  a  100%  subsidiary  of 

Tokai Corporation Japan. 

(29)  Disregarding  Tokai  Seiki  GmbH's production,  the three  Community  producers 

which  co-operated  with  the  present  investigation  (including  their  subsidiaries) 

represented  almost  the  totality  of  Community  production  of  disposable  flint 

lighters.  Consequently, 

these 

three  co-operating  Community  producers 

constitute the Community  industry  within the meaning of Article 4 of the Basic 

Regulation. 

E. INJURY 

1. 

Preliminary remark 

(30)  In the definitive  duty Regulation  it was 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"  (,0).  As 

meanwhile the measure concerning the  Republic of Korea was allowed to lapse 

and the measures concerning the People's Republic of China and  Thailand  have 

been  amended  further  to  interim  reviews  ("),  the  actual  impact  of  imports 

originating  in  Japan,  as  well  as  the  possible  impact  seen  from  the  angle  of 

recurrence, had to be examined in isolation. 

Recital  15 to Council Regulation (EEC) No 3433/91 referred to above. 
See recital 2. 

2. 

Consumption in the Community 

(31)  In  order  to  calculate  total  apparent  consumption  of  disposable  Hint  lighters  in 

the Community,  Community  producers'  sales  in  the Community  were added  to 

the  total  imports  originating  in  third  countries,  as  declared  under  CN  code 

ex 9613 10 00. An adjustment  was made as regards imports originating in China 
for  the years  1994 and  1995 (l2). On this basis annual  apparent  consumption  in 

the  Community  increased  by  27%,  from  617.7  million  units  in  1992 to  785.4 

million units in 1996. 

3. 

Factors relating to imports originating in Japan 

Volume and market share 

(32)  From  1992 to the  investigation  period,  imports  from  Japan  plummeted  to  very 

low levels in absolute terms. The indexed  import  figures  were  100 in  1992, 150 

in  1993,  33  in  1994  and  83  in  1995,  while  sales  of  such  imports  during  the 

investigation  period represent  but 6.1. The market  share  of imports  from  Japan 

decreased  from  around  0.5%  in  1992  and  1993  to  0.06  %  during  the 

investigation  period.  The  anti-dumping  measure  under  review 

therefore 

effectively  limited the impact of dumping of imports of disposable  flint  lighters 

originating in Japan. 

(33)  In  this  context  it  should,  however,  be  noted  that  a  considerable  portion  of 

imports  was  dumped.  In  particular, 

overall 
Philippines and Thailand should be mentioned in this regard (,3). 

imports  from  Mexico, 

the 

See recital 46 to Council  Regulation (EC) No 423/97 referred  to above. 
See Council  Regulation (EC) No 423/97 referred  to above. 

II 

Price undercutting 

(34)  The Commission  calculated  to what extent the prices charged  by the exporter in 

the  Community  market  undercut  the  price  charged  by  the  Community 

producers. As all  sales made by the exporter  were  made to  its  related  importer, 

this comparison was made at the level of sales to the first  independent  customer, 

and  on  the  basis  of  the  related  importer's  and  the  Community  producers' 

weighted  average selling prices free  of all rebates and taxes. The price  charged 

by the related importer was not adjusted  for anti-dumping duties paid. 

(35)  The comparison  was made at the level  of prices to wholesalers  (thus  excluding 

sales  to  retailers  and  the  advertising  sector).  Moreover,  the  price  comparison 

was  made  for  naked  lighters  (including,  however,  the  lighters  the  exporter 

presented  as 'wrapped') as the exporter  had  not  exported  any  printed  or  sleeved 

lighters during the investigation  period. 

(36)  As  in  the  original  investigation  and  in  accordance  with  Article  11(9)  of  the 

Basic Regulation, the price undercutting  calculation  was made for  lighters  with 
a similar gas content (I4). 

(37)  On  this  basis  it  was  found  that  the  average  price  of  the  imported  products 

undercut  the  weighted  average  price  of  the  Community  producers  by  22.9  % 

during  the  investigation  period.  This  is  to  be  compared  with  the  average 

undercutting of  11.5 % found  in the original  investigation.  It should therefore  be 

concluded  that  the  exporter's  undercutting  level  has  increased,  despite  the 

upward  effect  the  anti-dumping  duty  of  35.7  %  must  have  had  on  the  price 

charged by the related  importer. 

See recital  13 to Council  Regulation (EEC) No 3433/91 referred  to above. 

12 

4. 

Situation of the Community industry 

Production 

(38)  From  1992 to  1996 production by the Community  industry  increased  by 28 %. 

Capacity and Utilisation of capacity 

(39)  The capacity  utilisation  rate increased  from  66 % in  1992 to  73 % in  1994, to 

drop  to  71  %  during  the  investigation  period.  This  drop  coincided,  however, 

with  an  increase  in capacity.  Although  an  increase  in  capacity  of  almost  25  % 

was  reported,  the  increases  in  capacity  are  quite  recent  as  from  1992  to  1994 

capacity did not increase at any material rate. 

Sales volume 

(40)  Sales  in  units  in the  Community  market  by  the  Community  industry  increased 

by 33 % from  1992 to the investigation period. 

Market share 

(41)  In  a  growing  market,  the  market  share  of  the  Community  industry  dropped 

rather steadily  from  66.1  % in  1992 to 46.8 % in  1995, after  which  it  increased 

somewhat  to  53.6  % during  the  investigation  period.  This market  share  is  still 
somewhat  lower  than  the  1990  market  share  of  57.3 % (|S)  but  shows  that  the 

Community  industry  is  beginning  to  recover  from  the  effects  of  dumped 

imports. 

See recital 48 to Council  Regulation (EC) No 423/97 referred  to above. 

13 

Price evolution and total sales value 

(42)  It was established that weighted average sales prices of the Community  industry 

had  dropped  by  almost  8  %  from  1992  to  the  investigation  period.  The 

favourable  development  of  sales  volume  was  therefore  not  fully  reflected  in 

terms of turnover: the value of sales in the Community market increased by only 

23 %. 

(43)  The lighter  market  is known  to  be very  price  sensitive.  This  means  that  faced 

with  low  priced  dumped  imports,  the  Community  industry  is  either  forced  to 

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

capacity utilisation, or set to lose market share if it tries to maintain its prices. 

Profitability 

(44)  After  several  years of  losses, the Community  industry's  return  on sales became 

slightly positive in  1991 and deteriorated  somewhat in  1992 ("'). 

(45)  For the present  investigation  1992 was taken as the basis for  comparison.  After 

a  further  deterioration  in  1993, the Community  industry's  financial  results  have 

steadily  improved:  compared  to  1992,  the  profit  rates  more  than  doubled  in 

1994 and more than tripled in the investigation  period. 

See recital 55 to Council Regulation  (EC) No 423/97 referred  to above. 

14 

(46)  Nevertheless,  the  data  supplied  by  the  Community  industry,  which  for  (his 

purpose  did  not  include  one  of  the  complainants  given  that  it  did  not  give  an 

admissible  reply  on  profitability,  show  that  since  1992  its  overall  financial 

performance  continued  to be below  the  target  set  as a reasonable  profit  for  this 
industry  in the definitive  duty  Regulation  (l7). In fact,  profits  in  1992 and  1993 

were  very  small  and,  although  in  the  following  years  an  improvement  was 

noticeable, profits were less than half the non-injurious  level set. 

Stocks 

(47)  The  Community  industry  did  not  build  up  any  significant  stocks.  It  is  usual 

practice in this sector to stop production  if stocks become too big because of the 

security  risks  of  stocking  lighters  containing  gas  for  a  long  period  of  time. 

Moreover, as rationalisation efforts  have been made the overall  stocks at the end 

of  the  investigation  period  were  some  thirty  percent  smaller  than  those  at  the 

end of 1992. 

Employment 

(48)  From  1992 to the investigation  period, employment  in the Community  industry 

was stable  from 1992 to  1994 and increased  by  some  17 % since  1995.  While 

this  could  be  said  to  be  a  sign  of  recovery,  it  should  be  noted  that  the 

employment figure for  1992 was at its lowest level and had fallen  by  13 % since 
1989 (l8). It was noted  that  a considerable  portion  of the  expansion  pertains  to 

the sales and administrative segment rather than to production. 

Recital  17 to Council Regulation (EEC) No 3433/91 referred  to above. 
See recital 49 to Council  Regulation (EC) No  1006/95 referred  to above. 

15 

Exports 

(49)  The  Community  industry  performed  well  in  export  markets.  Its  sales  in  units 

steadily increased from  1992 to the investigation period. Over this period export 

sales, which represent approximately  60 % of the Community  industry's overall 

production, increased 69 %. 

5.  Conclusion 

(50)  The situation of the Community  industry has improved  in recent years due to an 

increase  of  their  sales  in  both  the Community  market  and  third  countries.  This 

development coincided  with the imposition of several anti-dumping duties. 

(51)  The increase in sales in the Community  market is most probably  due to both the 

growth  of consumption  and, to a lesser extent,  to the beneficial  effects  of anti 

dumping measures taken by the Community. 

(52)  The  downward  trend  of  the  market  share  of  the  Community  industry  was 

reversed  since  1995, but its 53.6 % market share during the investigation period 

is still smaller than the  1992 one. 

(53)  The increase  in apparent  consumption  and  the  fact  that  anti-dumping  measures 

were  imposed,  should  normally  have  had  an  upward  effect  on  prices  in  the 

Community  market.  Nevertheless,  the  prices  of  the  Community  industry  were 

found to have decreased  by 8 %. 

16 

(54)  Sales  by  the  Community  industry  in  the  Community  market  proved  more 

profitable  during the investigation period than in e.g.  1992. However, the prices 

charged by the exporter in the Community  market still undercut the Community 

industry's  prices  after  application  of  the  anti-dumping  duty  and  the  levels  of 

profitability  were  still  much  lower  than  the  non-injurious  level  fixed  in  the 

definitive  duty Regulation. 

(55)  In the light of the above, it is considered  that the Community  industry  continues 

to suffer  injury, notably in terms of profitability  and the growth of market share. 

As the market  share of imports of disposable  flint  lighters  originating  in Japan 

was  very  small,  it  was  not  possible  to  establish  a  causal  link  between  the 

dumped Japanese imports and this injury.  The injury  caused  by these imports is 

therefore  considered negligible or, in any case, not material. 

F. LIKELIHOOD OF RECURRENCE OF INJURIOUS DUMPING 

/. 

Introduction 

(56)  The  Community  industry  requested  that  the  definitive  duty  Regulation  be 

reviewed arguing that there was a likelihood of recurrence of injurious  dumping. 

In  order  to  make  a  determination  on  this  point,  a  number  of  factors  were 

considered,  in  particular  the  exporter's  group  behaviour,  the  availability  of 

unused  capacity  at  the  exporter's  plant  in  Japan,  the  existence  of  a  price 

undertaking  with  respect  to  exports  by  a  company  belonging  to  the  exporter's 

group and the price the exporter might charge if the duty were allowed to expire. 

In  addition  to the  examination  of the  position  of the  Community  industry,  the 

impact  that  resumed  exports  from  Japan  would  be  likely  to  have  on  the 

Community  industry,  the  existence  of  dumping  practices  and  the  evolution  of 

the share of overall  imports in the Community market were examined. 

17 

2.  Exporter 's group belt a viour 

(57)  In recent  years, only  small  quantities  of disposable  flint  lighters  were  imported 

from  Japan  and  sold  on  the  Community  market,  especially  when  compared  to 

imports  from  several  other  third  countries  (primarily  China,  Mexico,  the 

Philippines  and  Thailand)  whose  prices  were  found  to  be  at  dumped  levels. 

I lowever, the  low  level  of  imports originating  in Japan  has  to  be considered  in 

the light of the Tokai group's  behaviour. 

(58)  The sole exporter in the investigation  concerning, inter alia, imports originating 

in Mexico - further  to which definitive  anti-dumping  measures were imposed  in 

March  1997 - was a fully  owned  and  controlled  subsidiary  of the  Tokai  group 

developed  after  the  imposition  of  anti-dumping  measures  on  disposable  flint 
lighters  originating  in  Japan  (,9).  The  import  figures  show  that  imports  from 

Mexico  have  simply  replaced  those  produced  (and  exported)  by  Tokai 

Corporation  at its Japanese  plant, after  the  imposition  of measures on the  latter 

in  1991.  Indeed,  the  imported  quantities  of  lighters  originating  in  Mexico  are 

similar  to  the  quantities  that  Tokai  Corporation  used  to  deliver  to  the 

Community  market  from  Japan  prior  to  the  imposition  of  the  1991  measure. 

Moreover, it should be recalled that Tokai Corporation  started a downward price 

trend by selling Japanese lighters at dumped prices in the late  1980s. This trend 

was subsequently  reinforced  by dumping practices of other Asian producers and 

its resumption of dumping through its subsidiary set up in Mexico. 

See recitals 9 and 36 to Regulation (EC) No. 423/97 referred to above. 

18 

(59)  In  the  light  of  the  above,  the  low  level  of  Japanese  imports  during  the 

investigation  period  cannot  lead  to  the  conclusion  that  these  developments, 

which  occurred  after  the  imposition  of  measures  in  1991,  are  the  result  of 

normal  economic  behaviour  of  an  exporting  producer, 

i.e.  behaviour 

independent of the measures subject to review. As they are, in fact, the result of 

an apparent  strategy  of the Tokai group, there is clearly  a risk that Tokai would 

decide  to  resume  exporting  disposable  flint  lighters  to  the  Community  market 

from  Japan should measures be allowed to lapse. 

(60)  It  is  therefore  considered  appropriate  to  lake  into  account  that,  as  of  7  March 

1997,  definitive  anti-dumping  duties  were  imposed  on  imports  of  disposable 
flint lighters  originating  in  Mexico,  the  Philippines  and  Thailand  (20) and  that 

the  Mexican  exporter,  currently  subject  to  anti-dumping  measures,  is  a 

subsidiary of the Japanese exporter, when examining what is likely to happen if 

the existing measure were allowed to lapse. 

3. 

Japanese production capacity 

(61)  from  1992  to  the  investigation  period,  the  exporter's  production  capacity 

decreased  by 54 %. However, in addition  to the decrease of production  capacity, 

the  utilisation  rate  (expressed  in  percent)  of  its  remaining  capacity  also 

decreased  by 38 % from  1992 to the investigation  period. 

Council Regulation (EC) No 423/97 referred  to above. 

19 

(62)  During the investigation period, unused capacity  at the exporter's Japanese plant 

accounted  for  a  bigger  quantity  than  the  56.6  million  disposable  flint  lighters 

Tokai Corporation  exported  from  Japan  in  1989 (i.e. the investigation  period of 

the  original  investigation).  It  was  also  established  that,  from  1992  to  the 

investigation  period,  the  unused  capacity  had  been  rather  stable  in  absolute 

terms, given the concomitant  decreases of production  capacity  and  the capacity 

utilisation rate. 

4. 

Price undertaking applicable to another group company 

(63)  The  point  should  be  made  that,  after  the  imposition  of  the  measure  under 

review,  the exporter  shifted  the  production  of disposable  flint  lighters  destined 

for export to the Community  market to Mexico and subsequently  offered  a price 

undertaking  in respect of imports originating in that country  when  anti-dumping 

measures on these imports were unavoidable in March 1997. 

(64)  The  lapse  of  the  existing  measure  could  therefore  bring  about  sourcing  of 

production for the Community  market  in Japan, given that the price undertaking 

does  not  apply  to  imports  from  that  country  and  that,  even  without  moving 

production lines from  Mexico to Japan, the exporter disposed of sufficient  freely 

disposable capacity at its Japanese plant to supply the Community market with a 

quantity  higher  than  its  1989  exports.  This  may  in  particular  occur  if  the 

exporter would wish to be able to charge lower prices on the Community market 

than allowed  for imported products originating  in Mexico. 

20 

5. 

Continuation of dumping and price the exporter might charge 

(65)  As  stated  above,  during  the  investigation  period,  imports  of  disposable  flint 

lighters originating  in Japan continued  to be dumped. As the  imported  products 

were  sold  at prices  which  were  significantly  more dumped  than  in the  original 

investigation it appears likely that dumping will continue. 

(66)  Despite  the  application  of  the  anti-dumping  duty,  undercutting  of  the  average 

unit  price  charged  by  the  Community  producers  was  still  significant  (22.9  %) 

during  the  investigation  period.  If  the  anti-dumping  duty  had  been  deducted 

from  the  price  charged  to  the  first  independent  customer,  the  average  price  of 

the Community industry would have been undercut by as much as 43.1 %. 

6. 

Impact on the Community industry 

(67)  The  price  depressing  effect  of  continued  dumping  during  the  investigation 

period  was  minimal,  due  to  the  application  of  the  anti-dumping  duty  and  the 

small  quantities  imported.  The  exporter  had,  however,  sufficient  unused 

capacity  to  resume  exports  of  disposable  flint  lighters  originating  in  Japan  at 

significant  levels, e.g. similar to the quantity  imported  in  1989 (56.6 million). If 

such a quantity  would  be sold  in the Community  market at the same prices that 

the German  subsidiary  of the exporter  charged  during  the  investigation  period, 

this would result  in substantial  downward  pressure on prices in the  Community 

market and corresponding losses of turnover and market share. 

21 

(68)  The level of actual  losses will depend on the extent  to which Tokai  Seiki Cnnbl I 

would  lower its customer delivered  prices charged  in the Community  market, as 

a result of the anti-dumping duty of 35.7 % being lifted.  If these prices would be 

lowered  by  the  entire  amount  of  the  anti-dumping  duty  and  imports  would  be 

56.6 million, the Community industry would suffer  an immediate loss of at least 

4.88 % of its 1996 (whole year) turnover in the Community market as a result of 

undercutting  alone if they  were to lower their price  accordingly  in order  not to 

lose  their  customers.  However,  such  loss  does  not  include  the  losses  on  other 

sales due to the general, widespread  price depressive effect  of such  undercutting 

and  does  not  take  into  account  the  impact  on  the  volume  of  sales,  while  the 

Community  industry  is set to lose sales as a result of price undercutting. 

(69)  The  quantity  imported  from  Japan  in  1989 would  presently  represent  a market 

share of approximately  7.2 %. This market share is too significant  to be without 

any  impact  on  the  situation  of  the  Community  industry.  It  was, however,  not 

possible  to  establish  with  precision  what  the  effect  of  the  removal  of  the 

measures  would  be  on  such  factors  as  market  shares,  profitability  and 

employment  of  the  Community  industry  as  much  would  depend  on  uncertain 

factors  such  as  the  growth  of  consumption  in  the  Community  and  the  general 

price  depression  which  may  be  caused  by  the  resumption  of  importation  of 

significant  quantities. 

(70)  A global  analysis  of  some  specific  aspects  of the  main  regional  markets  in  the 

Community  was  made  to  assess  the  impact  the  importation  of  significant 

quantities  of  disposable  flint  lighters  originating  in  Japan  at  prices  which 

significantly  undercut the Community price is likely to have on the Community 

industry. 

22 

(71)  It was established  that competition  on  the German  market  was extremely  fierce 

as major  distributors and, in particular,  supermarket chains are usually  selecting 

one  or  two  suppliers  per  product  offered  in  their  outlets  and  thus  exercise 

downward  pressure  on  the  prices  of  these  suppliers.  In  this  situation  even 

minimal  price  undercutting  precludes  the  Community  industry's  access  to 

distribution  networks representing  a large number of consumers. The effects  of 

future  price undercutting would  therefore  be out of proportion  (be it in terms of 

loss of  market  share  or  loss of  profitability)  and  would  most  likely  last  for  an 

extended  period  of  time  as  access  to  the  distribution  network  is  normally 

granted for long contract periods. 

(72)  It was also established that at producer level prices in the United Kingdom were 

relatively  low  and  the  Community  producers  were  not  well  established  in  this 

market.  In  these  circumstances,  future  price  undercutting  would  impair  the 

penetration  of  Community  producers'  disposable  flint  lighters  in  this  already 

difficult  market and further  reduce the profitability  of their sales. 

(73)  Competition  in  the  Trench  market  was  found  to  be  important  due  to  the  very 

presence  of  the  manufacturing  plants  of  two  major  Community  producers  but 

price depression  appeared  less important than  in e.g.  Germany  and  the UK. As 

the  penetration  of  imported  products  was  relatively  low  and  the  Community 

industry  is well established  in this market, future  price undercutting  is likely to 

bring about not only some price depression but also a loss of market shares. 

23 

(74)  It was also established  that two Community  producers have production  plants in 

Spain  and  are  well  established  in  that  market.  'It  was  found  that  a  very 

substantial part of the Spanish market is supplied by non-Community  producers, 

as  Spain  was  the  second  largest  importing  Member  State  in  1995, and  prices 

were low compared to France and Germany. As one of the producers established 

in  Spain  indicated  that  further  rationalisation  and  cost  reduction  in  its 

production  plant was not possible, a loss of a substantial  market share or a price 

war  in the  Spanish  market  is likely to result  in closure of its plant, especially  if 

this  loss  were  matched  by  a  similar  development  in  the  nearby,  important 

French market. 

(75)  Irrespective  of  the  final  destination  in  the  Community  of  such  future  imports, 

sales  of  significant  quantities  of  disposable  flint  lighters  originating  in  Japan, 

would  affect  the  Community  industry's  position  in  such  a  way  that  their 

beginning  recovery  would  be  severely  impaired  if  not  nullified  as  the 

Community  industry  would  lose  sales  and  market  share.  As  a  result  of  the 

additional  price  depression  caused  by  price  undercutting  in  respect  of  this 

quantity,  e.g.  at  the  level  of the  investigation  period  (43.1 %  in  the  absence of 

anti-dumping  duty),  the  recovery  of  the  Community  industry's  profitability 

would,  moreover,  be  impaired  and  the  Community  producers  would  probably 

close one or more plants in the European Community. 

7. 

Volume and prices of overall imports 

(76)  As stated above, the Japanese exporter decided to supply the Community market 

with products  manufactured  in Mexico, on which  anti-dumping  measures  were 

imposed in March  1997. Therefore, the remedial effect  of the measure  imposed 

in 1991 was much smaller than it would have been under normal circumstances. 

24 

(77)  In addition, overall  imports of disposable  flint  lighters  increased  by  74 %  from 

IW2  to  the  investigation  period,  an  increase  much  higher  than  the  increase  of 

consumption  during  that  period.  As a result,  the  market  share  of  these  imports 

increased  from  33.5 % in  1992 to 53 % in  1995 and 46.3 % in  1996. 

(78)  As  shown  by  the  successive  anti-dumping  measures  imposed  from  1992  to 

1998,  there  has  been  a  continuous  influx  of  low-priced  and  dumped  imports 

from  third  countries  in  the  Community  market.  As  a  result  prices  on  the 

Community  market have continuously dropped to reach low levels: in a growing 

market  the  prices  of  the  Community  industry  nevertheless  decreased  by  8  % 

from  1992 to the investigation  period. 

8.  Conclusion 

(79)  After  the  imposition  of  the  anti-dumping  duty,  dumping  of  disposable  flint 

lighters  originating  in  Japan  continued  during  the  investigation  period.  It  is 

therefore  likely that dumping will also continue in the future. 

(80)  It is considered  likely  that, should  the measure  subject  to review  be  allowed  to 

lapse,  a  resumption  of  the  importation  of  large  quantities  of  disposable  flint 

lighters  originating  in  Japan  would  cause  material  injury  to  the  Community 

industry.  First  of  all,  because,  if  one  bases  oneself  on  the  prices  of  Japanese 

lighters  sold  during  the  IP,  the  prices  of  such  imports  would  significantly 

undercut  the Community  producers'  price and  thus affect  their financial results. 

Secondly,  because  prices  on  the  Community  market  are  already  very  low  as a 

result  of  downward  pressure  on  prices,  and  further  downward  pressure  is 

therefore  likely  to  force  the  Community  industry  to  sell  with  a minimal  profit 

margin  or  even  at  a  loss.  Thirdly,  because  the  quantities  are  likely  to  be  big 

enough to impair or nullify  the recent  recovery  of this industry, to endanger  its 

economic  viability  and  to  cause  a  loss  of  crucial  markets  for  the  Community 

industry. 

25 

(81)  In this regard, it should be noted that profit  margins have been small for  several 

years, that overall imports have shown a disproportionate increase and that, even 

if the exporter's  sales of disposable  Hint lighters originating  in Japan  decreased, 

the  remedial  effect  of  the  measure  was  undermined  by  that  same  exporter's 

decision to supply the Community  market with dumped  products originating  in 

Mexico. 

(82)  Given  this  link  between  the  Mexican  and  the  Japanese  exporters,  and  the 

existence  of  sufficient,  freely  disposable  capacity  in  Japan,  the  Japanese 

exporter  would  not  only  have the  means to supply  the Community  market,  but 

also the option  to charge  lower prices than permitted  by its price undertaking in 

respect  of  its  Mexican  production,  if the definitive  duty  Regulation  were  to be 

allowed to expire. The small market share of imports originating  in Japan during 

in particular the investigation period could not invalidate this conclusion on the 

exporter's potential for future exports. 

(83)  As it was established  that there was sufficient  unused  capacity  at the  exporter's 

plant  in  Japan  to  supply  the  Community  market  with  significant  quantities  of 

disposable flint  lighters, that the dumped  imports during the investigation period 

significantly  undercut  the  Community  industry's  price,  that  the  Community 

industry  is  only  beginning  to  recover  and  its  prices  dropped  some  8 %  from 

1992  to  the  investigation  period,  it  is  considered  likely  that  the  expiry  of  the 

measure  under  review  would  entail  a  recurrence  of  injurious  dumping,  if  the 

exporter  would  decide  to  source  its  exports  to  the  Community  at  its  plant  in 

Japan. Given the price competitiveness of the market and the exporter's strategy 

to avoid the anti-dumping duty under review, such a decision does not appear to 

be unlikely. 

26 

C. COMMUNITY  INTEREST 

/. 

Community industry 

(84)  The  Community  industry  has  for  almost  a  decade  been  suffering  from  low-

priced  and  dumped  imports  of  disposable  flint  lighters.  The  objective  of  the 

definitive  duty  under  review, to re-establish  fair  competition  in the  Community 

market  between  the  Community  producers  and  their  exporting  counterparts  in 

third countries, has not been  fully  met as is shown  by subsequent  developments: 

Tokai itself set up a production plant in Mexico and started exporting from  there 

to  the  European  Community  at  dumped  prices,  while  other  third  countries  -

more  particularly  China,  the  Philippines  and  Thailand  -  also  resorted  to 

dumping.  As  a  result  the  Community  industry  has  not  been  able  to  recover 

entirely,  despite  its  efforts  to  reduce  costs  and  to  benefit  from  economies  of 

scale. 

(85)  The Community  industry  consists  of  two  multinational  groups  selling  several 

products  other  than  disposable  flint  lighters  and  a  relatively  small  producer, 

which  combines  the  production  of  disposable  flint  lighters  with  a  trading 

company. 

(86)  The  Community  industry  has  been  making  considerable  efforts  to  improve  its 

productivity  in  recent  years  in  an  attempt  to  obtain  the  lowest  possible  cost  of 

production  and  to  enhance  its  competitiveness  in  this  price  sensitive  market. 

Rationalisation  efforts  were  made: the  two  producing  groups  have  rationalised 

their production process and adapted their structures, the third producer's  efforts 

were primarily based  on the realisation  of economies of scale. New  investments 

were  also  made  to  improve  productivity.  However,  given  that  export  sales 

increased  much  faster  than  sales  in  the  Community  and  export  sales  represent 

more  than  half  of  the  Community  producers'  sales,  the  investments  in 

production  capacity  were primarily  made  for  the  purpose  of  supplying  markets 

other than the Community market. 

27 

(87)  Although  no  closure  o\'  production  plants  occurred,  this  appears  due  to  a 

strategic  approach  of  the  producers  concerned,  supported  by  the  existence  of 

anti-dumping measures concerning disposable flint lighters and the development 

of their  export  sales.  In this regard,  it  should  be  noted  that  all  three  producers 

have  profitable  activities  in  other  sectors,  which  provide  enough  financial 

resources  to  maintain  their  production  plants  for  disposable  flint  lighters  for 

some time. It cannot, however, be ruled out that the effects  of a discontinuation 

of  an  anti-dumping  measure  will  provoke  the  mere  closure  of  any  of  the 

production plants. 

(88)  In view of the above, the effectiveness  of the Community's  measures  designed 

to  re-establish  fair  and  open  market  conditions  and  to  protect  the  Community 

industry  against  an unfair  trading  practice  is at  stake. This  major  consideration 

apart, there is a serious risk that Community producers put an end to production 

at  one  or more  plants,  if  the anti-dumping  measure  were allowed  to  lapse and 

subsequently  injurious  dumping  of  large  quantities  of  disposable  flint  lighters 

originating  in Japan  would  occur.  The  impact  thereof  could  be  detrimental  for 

some,  if  not  all,  of  the  regions  in  the  Community  where  the  plants  are 

established. 

2. 

Importers 

(89)  As  the  exporter  did  not  report  any  direct  sales  to  unrelated  parties  in  the 

European Community  and no reaction was received from  any importer after  the 

publication of the notice of initiation, no unrelated  importers of Tokai's lighters 

originating in Japan could be  identified. 

28 

(90)  As  regards  Tokai's  subsidiary  in  Germany,  which  is  the  sole  importer  of 

disposable flint lighters originating  in Japan, it should  be noted  that  it employed 

a  very  limited  number  of  people  as compared  to  the Community  industry.  The 

impact  on  this  importer  of  maintaining  the  measure  under  review  is  therefore 

likely to be minimal. 

3.  Consumers 

(91)  in  the  original  investigation,  the  importers  alleged  that  the  interests  of 

consumers  would  be  adversely  affected  by  anti-dumping  measures  on 

disposable 

flint 

lighters.  However, 

in 

the  present 

investigation,  no 

representations  of consumers  associations  were  received  and  there  is  otherwise 

no  reason  to  assume  that  a change  of circumstances  has  occurred  which  could 

invalidate the arguments used in previous investigations to reject this allegation. 

(92)  It  was  therefore  concluded  that  usually  importers  benefit  from  low-priced 

imports  rather  than  the  consumers  and  that  it  is  the  long-term  consumers' 

interest  that  a  wide  range  of  products  is  offered  at  fair  (rather  than  extremely 

low)  market  prices.  Moreover,  as  disposable  flint  lighters  are  inexpensive 

products  even  when  sold  without  dumping  and  do  not  therefore  constitute  a 

major  part  of  any  consumer's  overall  expenditure,  consumers  are  not  likely  to 

refrain  from  buying  this  product  if  the  absolute  level  of  prices  is  increased 

somewhat. 

4.  Conclusion 

(93)  In view of the above, no compelling reasons not to take action were identified.  It 

was  therefore  concluded  that  it  is  in  the  Community  interest  to  maintain  the 

anti-dumping measure on disposable flint lighters originating in Japan to avoid a 

recurrence  of  material  injury  to  the  Community  industry  caused  by  dumped 

Japanese imports. 

29 

H. DEFINITIVE  MEASURES 

/. 

Level of measures 

(94)  As  during  the  investigation  period  only  a  very  small  quantity  of  lighters 

originating  in  Japan  was  sold  on  the  Community  market,  the  market  share  of 

these  imports  was  very  small  and,  accordingly,  the  injury  caused  by  such 

imports  is considered  negligible  and,  in any case, not material.  In view thereof, 

and  despite  a substantially  increased  dumping  margin,  it  is considered  that  the 

data  concerning  dumping  and  injury  during  the  investigation  period  do  not 

constitute a proper basis for an upward amendment of the anti-dumping duty. 

(95)  It was, however, established that dumping had continued after  the imposition of 

anti-dumping  measures,  that  the  exporter's  unused  capacity  during  the 

investigation  period  was  considerable  and  that,  given  the  existence  of  a  price 

undertaking  applicable  to the Mexican  subsidiary  of the exporter,  a decision  to 

source again  production  for the Community  market  in Japan  is not excluded, if 

the measures in force would expire. 

(96)  It  was  also  established  that,  after  imposition  of  the  duty,  the  prices  charged 

during  the investigation  period  still  undercut  those of the Community  industry. 

If significant  quantities of disposable flint lighters originating in Japan would be 

sold on the Community  market  at similar prices, it is considered  likely that the 

Community  industry  would  suffer  material  injury  as  a  result  of  the  price 

depressing effect  on prices in the Community  market and a loss of sales which 

might well be disproportionate. 

30 

(97)  In these circumstances, it was established  that there is a likelihood  of recurrence 

of  injurious  dumping  and  it  is  considered  that  the  current  measure  should  be 

maintained  to  prevent  dumping  which  would  cause  material  injury  to  the 

Community  industry. 

2.  Residual duty 

(98)  As  Tokai  Corporation  is  the  sole  co-operating  exporting  Japanese  producer, 

whose exports  to the  Community  represented  during  the  investigation  period  a 

high  proportion  of  total  exports  of  disposable  flint  lighters  from  Japan,  it  is 

considered  appropriate  to  set  the  duty  for  any  non  co-operating  companies 

which are not known at present, at the level of the duty set for that producer. 

3.  Duration of measures 

(99)  As the length of the review was unusual, the duration of the maintained  measure 

should, in this specific  case, be fixed in such a way as to balance the rights and 

obligations  of  all  co-operating  parties.  Given  that  the  extension  of  the 

investigation  was to the detriment  of the exporter  in that the measure  remained 

in force  for an additional  period  of almost  one year, the duration  should  be  four 

years rather than the five years that would otherwise have applied. 

4.  Conclusion 

(100) In view of the considerations and  facts stated above, it is considered  appropriate 

that  the  anti-dumping  measure  concerning  the  imports  of  disposable  flint 

lighters  originating  in  Japan  be  maintained  at  the  current  rate  of  duty  for  a 

period of four years. The new duty should therefore be 35.7 %. 

31 

I. FINAL  PROVISIONS 

(101) All  interested  parties  co-operating  with  the  investigation,  the  complainants,  the 

exporter  and  the  Japanese  government,  received  disclosure  in  writing  of  the 

essential  facts  and  considerations  on  the  basis  of  which  the  Commission 

intended  to recommend  that the definitive  measure be  maintained,. 

(102) The  complainant  producers  did  not  submit  any  written  comments  and  the 

exporter  submitted  comments  of  a  general  nature  that  did  not  justify  any 

modification  of the conclusions  brought  to its  attention. 

(103) For  the  sake  of  clarity,  provision  should  be  made  to  amend  the  definitive  duty 

Regulation,  given  that  the  anti-dumping  duly  on  imports  originating  in  the 

Republic  of  Korea  has  lapsed  and  the  present  Regulation  imposes  a  definitive 

anti-dumping  duty  on  imports originating  in  Japan, 

HAS  ADOPTED  THIS  REGULATION: 

Article  I 

(1) 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  gas-fuelled, 

non-rcfillable  pocket  flint  lighters  falling  within  CN  code  ex  9613  10 00  (Taric 

code  9613  10 00* 10) originating  in Japan. 

(2) 

The  rate  of  the  duty,  applicable  to  the  net,  free-at-Community-frontier  price, 

before  duty,  shall  be  35.7  %. 

(3) 

Unless  otherwise  specified,  the provisions  in force  concerning  customs  duties 

shall  apply. 

32 

Article 2 

Regulation (EEC) No 3433/91  is hereby amended as follows: 

(i) 

At  the  end  of  Article  1(1)  the  words  "originating  in  Japan,  the  People's 

Republic  of  China  and  the  Republic  of  Korea"  shall  be  replaced  by 

"originating in the People's Republic of China". 

(ii) 

Article  1(2) shall be replaced by the  following: 

"2.  The amount of duty shall be ECU 0.065 per lighter." 

Article 3 

( I )  This Regulation shall enter into  force on the day  following  its publication  in the 

Official  Journal of the European Communities. 

(2)  This Regulation  shall  remain in force  for  four  years, provided  that,  should  any 

review of that measure be pending on that date, it shall remain in force until that 

review is concluded. 

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

States. 

Done at Brussels, 

1998. 

For the Council 

The President 

33 

ISSN 0254-1475 
ISSN 0254-1475 

COM(98) 619  final 
COM(98) 619  final 

DOCUMENTS 
DOCUMENTS 

RN 
RN 

02  u 
02 
il 

io 
IO 

Catalogue  number  :  CB-CO-98-605-HN-C 
Catalogue  number  :  CB-CO-98-605-HN-C 

Office  for  Official  Publications  of  the European  Communities 
Office  for  Official  Publications  of  the European  Communities 

L-2985  Luxembourg 
I .-2985  Luxembourg