Council Regulation (EC) No 192/1999 of 25 January 1999 extending the definitive 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 to imports of certain disposable refillable pocket flint lighters originating in the People's Republic of China or consigned from or originating in Taiwan and to imports of non-refillable lighters consigned from or originating in Taiwan, and terminating the proceeding in respect of imports of non-refillable lighters consigned from Hong Kong and Macao
Date: 1999-01-25
Institutions: Council of the European Union
Subjects: Asia, anti-dumping duty, customs duties, import, originating product, tobacco industry

29. 1. 1999

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 192/1999

of 25 January 1999

extending the definitive 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 to imports of certain disposable refillable
pocket flint lighters originating in the People’s Republic of China or consigned
from or originating in Taiwan and to imports of non-refillable lighters
consigned from or originating in Taiwan, and terminating the proceeding in
respect of imports of non-refillable lighters consigned from Hong Kong and
Macao

THE 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
the European
not members
Community (1), and in particular Article 13 thereof,

of

Having regard to the proposal submitted by the Commis-
sion after consulting the Advisory Committee,

Whereas:

A. PROCEDURE

(3)

(1)

(2)

1. Existing measures

By Regulation (EEC) No 3433/91 (2), the Council
imposed an anti-dumping duty of 16,9 % on
imports of gas-fuelled, non-refillable pocket flint
lighters (hereinafter referred to as ‘disposable, non-
refillable flint lighters') originating in the People’s
Republic of China. This duty was based on the
dumping margin found.

for a review, pursuant

In November 1993, the Commission received a
request
to Article 14 of
Regulation (EEC) No 2423/88 (3), of these meas-
ures, lodged by the European Federation of Lighter
Manufacturers (EFLM), alleging that there had been
an increase in the dumping margin and, conse-
quently, further injury. The ensuing investigation
resulted in a finding of a dumping margin of

(1) OJ L 56, 6. 3. 1996, p. 1. Regulation as last amended by
Regulation (EC) No 905/98 (OJ L 128, 30. 4. 1998, p. 18).
(2) OJ L 326, 28. 11. 1991, p. 1. Regulation as last amended by
Regulation (EEC) No 423/97 (OJ L 65, 6. 3. 1997, p. 1).

(3) OJ L 209, 2. 8. 1988, p. 1.

80,3 % and the imposition, by Regulation (EC) No
1006/95 (4), of a specific anti-dumping duty on
imports of disposable non-refillable flint lighters
from the People’s Republic of China of ECU 0,065
(hereinafter referred to as the ‘existing
per piece,
measures').

2. Request for the initiation of a circumven-

tion investigation

concerning the

circumvention of

On 24 March 1998, a request was lodged by the
EFLM,
the
existing measures (hereinafter referred to as ‘the
the anti-
request'). According to the request,
dumping duty is allegedly circumvented through a
change in the pattern of trade between the People’s
Republic of China, Hong Kong, Macao and
Taiwan, on the one hand, and the Community, on
the other, stemming from the following practices
for which there is insufficient economic justifica-
tion other than the imposition of the duty:

— imports

of disposable, non-refillable

flint
lighters originating in the People’s Republic of
China, transhipped via Hong Kong, Macao and
Taiwan respectively,

— imports

of disposable, non-refillable

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

lighters although,

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

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Official Journal of the European Communities

29. 1. 1999

(4)

(5)

(6)

Furthermore, a request was made to make these
imports subject
to registration by the customs
authorities pursuant to Article 14(5) of Regulation
(EC) No 384/96 (hereinafter referred to as ‘the
Basic Regulation') and where justified, to extend
the above anti-dumping duty to them.

The request contained sufficient prima facie
evidence, in accordance with the requirements of
Article 13 of the Basic Regulation, to initiate an
investigation into the alleged circumvention of the
existing measures. Therefore, by Regulation (EC)
No 971/98 (1),
the Commission commenced an
investigation.

B. INVESTIGATION

The Commission advised the representatives of the
People’s Republic of China, Hong Kong, Macao
and Taiwan of the initiation of the investigation.
Questionnaires were sent to Community importers
and exporters who were mentioned in the request,
as well as to exporters known from the previous
investigation and other interested parties who came
forward within the prescribed time limit. Replies to
the questionnaires were
from one
producer in Macao and its related exporter, one
importing group with related purchasing com-
panies located in, and exporting from, the Far East
and three unrelated importers.

received

(7)

The Commission carried out verification visits at
the premises of the following companies:

Producer

— F(cid:145)brica de Isqueiro Macau Lda (FDI) — Macao,

Related exporters

— Gladstrong Investments Limited — Hong

Kong (related to FDI),

— Pollyflame Concept (HK) Ltd — Hong Kong
(purchasing company for Polly Concept Group
Europe),

Importer

— Heinz Tr(cid:148)ber GmbH & Co — Germany.

(8)

The investigation period was from 1 January 1997
to 31 March 1998.

C. RESULTS OF THE INVESTIGATION

1. PEOPLE’S REPUBLIC OF CHINA

1.1. Practice at issue

(9)

The request alleged that producers of pocket flint
lighters in China have added a refill valve to the
basic disposable flint lighter, in order for it to be
classified as a refillable flint lighter for customs

(1) OJ L 135, 8. 5. 1998, p. 38.

purposes and thereby fall under a different CN
code which is not subject to the existing measures.
It was further alleged that these lighters (hereinafter
referred to as ‘disposable, refillable flint lighters')
are not, in practice, sold or used as refillable.

1.2. Like product

(10)

The disposable, refillable flint lighters from China
were identical in all respects to the disposable, non-
refillable flint
lighters in the preceding invest-
igation, except for the addition of a refill valve
which was determined to be an ineffectual addition
for a lighter which in practice was perceived and
treated by consumers as disposable (see recitals 16
to 21). It was therefore determined that these were
alike to the lighters subject to the existing meas-
ures.

1.3. Change in the pattern of trade

(11) No data was received from lighter producers or
in the People’s Republic of China.
exporters
However, information was obtained from one coop-
erating importer which purchased disposable, refil-
lable flint lighters during the investigation period
and from a Hong Kong company, related to the
cooperating producer in Macao, which exported
them to the Community. Together, they accounted
for 15 % of the total refillable flint lighter imports
from the People’s Republic of China to the
Community during the investigation period. Given
this low degree of cooperation, the change in the
pattern of
trade was examined by reference to
Eurostat figures.

(12) According

to

imports

Eurostat,

into
the
Community of refillable flint
lighters from the
People’s Republic of China have increased substan-
tially from 22,8 million units in 1994 to 144
million units in 1997. At the same time, imports of
disposable, non-refillable lighters from the People’s
Republic of China decreased from 133,5 million
units in 1994 to 6,8 million units in 1997.

(13)

Part of the imports of refillable flint lighters consist
of refillable lighters which are clearly not dispos-
able. However, the sharply declining average unit
price, from ECU 0,37 in 1993 to ECU 0,19 in 1994
and to ECU 0,10 in 1997 provides strong evidence
that disposable, refillable flint lighters represent the

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Official Journal of the European Communities

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imports

from 1994 onwards.
vast majority of
Furthermore, this 1997 average price is even lower
than the average unit price of disposable, non-refil-
lable flint lighters from China in the same year.

(14)

This evolution of quantities and prices coincided in
time with the start of the review investigation on
Chinese disposable, non-refillable flint lighters at
the end of 1993 (1), and the imposition of a higher
dumping duty in 1995.

(15)

(16)

(17)

1.4. Insufficient due cause or economic justi-

fication

The Commission examined whether the addition
of a valve to the basic disposable flint lighter could
be sufficiently justified for any reasons other than
the avoidance of the existing anti-dumping duty. In
examining this issue, it considered the following
evidence.

There was a major change in the overall structure
of imports of flint lighters, both refillable and non-
refillable, into the Community during the period
1994 to 1997. Whereas in 1994 imports of Chinese
refillable flint lighters accounted for only 7,6 % of
total imports of flint lighters, by 1997 this share
had increased to 44,2 %. Over the same period
disposable, non-refillable flint lighter imports from
the People’s Republic of China decreased from
45,0 % to 2,1 % of total imports of flint lighters.
This substitution of refillable flint lighters for non-
refillable flint lighters did not arise in respect of
imports into the Community from any other third
country.

Total imports of flint lighters into the Community
have remained relatively stable between 1994 and
1997 despite the high increase in the proportion of
imports of disposable, refillable flint lighters during
the same period. According to comments received
from interested parties, total Community consump-
tion of flint lighters (i.e. both refillable and non-
refillable) appears to have remained relatively stable
throughout this period. There is a strong likelihood
that if the disposable, refillable flint lighters were
actually being refilled, the total consumption of
flint lighters would have decreased.

(18) According

to the

samples obtained by

the
Commission from cooperating parties, the flints in
disposable, refillable lighters are no longer than the
flints in disposable, non-refillable lighters. There-

(1) OJ C 343, 21. 12. 1993, p. 10.

fore, the flint would, generally, require replacement
if the lighter was refilled. However, the Commis-
sion found that, on the one hand, the flints were
not readily available in all areas of the Community,
while on the other, it was generally not practical,
and often impossible, for an ordinary consumer to
change the flint.

for the
(19) Notwithstanding the reservations above,
average Community consumer,
the maximum
theoretical cost saving from refilling disposable,
refillable flint lighters (taking into account the cost
of gas containers) would be negligible (about ECU
2 per year). In these circumstances, it is unlikely
that the Community consumer would be persuaded
to go through the impractical process of
flint
replacement and refilling.

(20)

(21)

(22)

(23)

tests performed by a customs
The results of
authority and opinions expressed by several inter-
ested parties indicated that the disposable, refillable
flint lighters could not always be refilled, and often
failed to function properly even for the duration of
one gas tank. Furthermore, they are often not sold
with refilling instructions and warnings as required
by the international standard for lighter safety, ISO
9994.

For marketing purposes, for example packaging,
brochures and advertising, the disposable, refillable
flint lighters are generally not distinguished from
disposable, non-refillable flint lighters, and their
distribution channels are identical.

The above points confirm the comments received
from exporters and importers of disposable, refil-
lable flint lighters that, in normal circumstances,
Community consumers would not refill the dispos-
able, refillable flint lighters.

The disposable, refillable flint lighters under in-
vestigation correspond to one of the earliest Jap-
anese models of disposable, non-refillable flint
lighters, adopted by Chinese manufacturers about
10 years ago. The basic design incorporates a
plastic tank body. The Chinese producers have not
attempted to introduce any additional features or
improvements on this basic design, except for a
child security mechanism for
the US market
(required by regulation since 1995) and the refill
valve for the Community market.

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29. 1. 1999

(24)

In view of the above, no due cause or economic
justification was found, for the addition of the refill
valve to the basic disposable flint lighter, other
than the imposition of the existing measures.

(28)

therefore, be concluded that disposable,
It can,
refillable flint lighter imports significantly under-
mine, both in terms of quantities and of prices, the
remedial effects of the anti-dumping duty imposed
on disposable, non-refillable flint lighters origin-
ating in the People’s Republic of China.

1.6. Evidence of dumping

1.5. Undermining of the remedial effect of

the existing measures

(29)

(25) As

indicated in the previous

section, Chinese
disposable, refillable flint lighters are competing in
the disposable segment of the Community lighter
market. Indeed, as shown above, the vast majority
of these imports cannot be, and are not, used as
refillable lighters.

The average fob Chinese frontier export price of
disposable refillable flint
lighters from the two
cooperating companies, referred to in recital 11,
during the investigation period was ECU 0,044.
The average cif Community border import price
based on Eurostat figures for all Chinese refillable
(disposable
lighters
during the same period was ECU 0,094 which is
equivalent to ECU 0,092 on a fob Chinese frontier
basis. Both of these fob values are substantially
below the normal value of ECU 0,144 established
in the previous investigation and there is therefore
clear evidence of dumping.

and non-disposable)

flint

(26)

(27)

In terms of quantities, total imports of Chinese
refillable flint lighters accounted for about 25 % of
estimated Community consumption and about
50 % of total imports of flint lighters during the
investigation period. This was comparable to the
proportions of Chinese disposable, non-refillable
flint lighters consumed and imported in 1994 (i.e.
immediately before the imposition of the increased
duty following a full review covering dumping,
injury and Community interest). Thus, a clear
substitution pattern is shown, since the total import
volume of refillable and non-refillable flint lighters
from the People’s Republic of China has remained
at about the same level.

the average import price,
In terms of prices,
customs duty paid, for disposable, refillable flint
lighters, reported by cooperating companies during
the investigation period was ECU 0,047, while the
equivalent price for all refillable flint lighters based
on Eurostat figures was ECU 0,095. Despite the fact
that the latter price is significantly higher than that
it also
established for cooperating parties, as
includes genuinely refillable flint
is
it
comparable to the dumped and injurious customs
duty paid import price established for disposable,
non-refillable flint lighters in the previous invest-
igation (ECU 0,081). Furthermore, both import
prices established in the current investigation are
significantly lower than the import price of ECU
0,146 which was the price determined in the
previous investigation at which the injurious effects
of dumping would have been eliminated.

lighters,

1.7. Conclusion

(30)

(31)

(32)

In these circumstances,
the existing measures
should be extended to disposable, refillable flint
lighters originating in the People’s Republic of
China.

The existing measures should not be extended to
all refillable lighters, but only to those which are
clearly like disposable, non-refillable flint lighters.
A value threshold, together with a physical descrip-
tion (i.e. plastic tank body), seems the most appro-
priate approach to define these lighters.

The investigation has shown that disposable, refil-
lable flint
lighters are being imported into the
Community at an average cif price of ECU 0,046.
However, it would not be appropriate to set the
threshold below the normal value established in
the previous
cif
Community frontier basis) which was lower than
the injury threshold.

investigation (adjusted to a

(33) Accordingly, the existing duty should be extended
to disposable, refillable flint lighters with a plastic
tank body, falling within CN code ex 9613 20 90,
imported from the People’s Republic of China,
with a free-at-Community frontier, duty unpaid
value per piece of less than EUR 0,15.

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2. TAIWAN

2.1. Practice at issue

(34)

flint

imports of disposable,
The request alleged that
non-refillable
from Taiwan are
lighters
circumventing the existing measures. The request
submitted that there is no production of disposable,
non-refillable flint lighters in Taiwan and therefore,
that any such imports, into the Community, regis-
tered by Eurostat, consists of disposable, non-refil-
lable lighters originating in the People’s Republic
of China which have been incorrectly declared as
being of Taiwanese origin. This allegation was
examined in the light of the provisions of Article
13(1) of the Basic Regulation.

(35) At the outset, it is recalled that no company from
Taiwan cooperated in the investigation, despite the
fact that 29 questionnaires were sent to Taiwanese
exporters and that the Taiwanese authorities were
duly informed. The transactions reported by coop-
erating importers during the investigation period
did not
include any imports consigned from
Taiwan. One importer came forward during the
investigation claiming that there was production of
the product concerned in Taiwan. The importer
did not, however, give any details about his
supplier, not even the name. The importer was
sub-
requested to fill
sequently no response was received.

in a questionnaire but

(36)

(37)

In the course of the investigation, the Commission
examined Taiwanese export statistics of disposable
non-refillable flint lighters. According to these stat-
istics, during the investigation period, Taiwanese
exports accounted for approximately half of the
Community imports from Taiwan as shown in
Eurostat.

(39)

it was concluded,

in
In these circumstances,
accordance with Article 18 of the Basic Regulation,
that the imports from Taiwan which could not be
accounted for by Taiwanese export statistics, should
be considered as being of People’s Republic of
China origin and transhipped through Taiwan. In
this context,
it should be noted that there was
evidence of falsified certificates of origin relating to
disposable lighters allegedly from the People’s
Republic of China which were wrongly declared to
be of Taiwanese origin included in the com-
plainants’ request.

from the importer referred to above pointed to the
existence of one producer of lighters in Taiwan.
However, in the course of the investigation, cooper-
ating parties indicated that, to their knowledge,
there is no genuine production of disposable non-
refillable flint lighters in Taiwan except, perhaps,
for sale in the domestic market. Furthermore, they
commented that production of this type of lighter,
for export, is no longer economical in Taiwan, and
that all exporting Taiwanese lighter manufacturers
have moved their production of disposable non-
refillable flint lighters to the People’s Republic of
China. On the basis of the foregoing, the Commis-
sion concluded that
imports from
Taiwan had also been transhipped through this
country but were originating in the People’s
Republic of China. In this context it should also be
noted that even if there is some production of
lighters in Taiwan, there is no indication as to what
proportion of exports that production would rep-
resent and furthermore, given that no producer in
Taiwan co-operated during the investigation, it is
considered that
any production operation in
Taiwan, examined with regard to the criteria of
Article 13(2) of the Basic Regulation, would be
circumventing the existing measures.

these other

2.2. Change in the pattern of trade

Eurostat figures show that imports of disposable,
non-refillable flint lighters from Taiwan increased
from 7,5 million units in 1994 to 37 million units
in 1995. This period covers basically the time from
the initiation of the review investigation until the
the substantially increased anti-
imposition of
from the People’s
dumping duty on imports
Republic of China. Subsequently,
imports from
Taiwan decreased to 33 million units in 1996 and
they further decreased to 16 million units in 1997.
Taiwan’s own export statistics show a similar evolu-
tion pattern, although, as indicated above, they only
account
the imports
reported by Eurostat. At the same time, and as
import volumes of disposable,
indicated above,
non-refillable flint
from the People’s
lighters
Republic of China decreased from 133,5 million
units in 1994 to 6,8 million units in 1997.

for approximately half of

(38) As far as the remaining imports from Taiwan are
concerned, determinations also had to be made on
the basis of the facts available, in accordance with
Article 18 of the Basic Regulation. The statement

(40)

There was, therefore, a change in the pattern of
trade between Taiwan, the People’s Republic of
China and the Community, i.e. imports of dispos-
able, non-refillable flint lighters from the People’s
Republic of China have been partially replaced by
imports of such lighters from Taiwan.

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2.3. Insufficient due cause or economic justi-

(45)

fication

(41) As mentioned above, the sharp increase in imports
of disposable, non-refillable flint
from
Taiwan, on the one hand, and a decrease in imports
from the People’s Republic of China, on the other,
immediately followed the introduction of a signi-
ficantly increased anti-dumping duty on imports of
such lighters from the People’s Republic of China,
in May 1995.

lighters

(42)

disposable, non-refillable

In view of the comment from cooperating parties
increasing production costs have rendered
that
production of
flint
lighters uncompetitive in Taiwan, and in the
absence of any other information in this respect, it
was concluded that there was no economic justi-
fication or due cause for the change in the pattern
of trade other than the imposition of the existing
measures.

Therefore, it was concluded that imports of dispos-
able, non-refillable flint lighters from Taiwan partly
replaced the imports of disposable, non-refillable
flint lighters from the People’s Republic of China
and that they thereby undermined both in terms of
quantities and of prices, the remedial effects of the
anti-dumping duty imposed on disposable, non-
refillable flint lighters originating in the People’s
Republic of China.

2.5. Evidence of dumping

(46)

It was concluded, on the basis of the information
available from the complainants and Eurostat, that
disposable, non-refillable flint lighters of Chinese
origin but consigned to the Community from
Taiwan were imported at dumped prices, when
compared to the normal value established in the
previous investigation. In this respect it should be
noted that
the normal value established in the
previous investigation was ECU 0,144 per unit,
while the average import price adjusted to a fob
Taiwan basis during the investigation period was
ECU 0,092.

2.4. Undermining of the remedial effect of

2.6. Conclusion

the existing measures

(43)

the

investigation period. This

In the absence of information from cooperating
parties, average unit values based on Eurostat
figures were used, yielding an average import price,
adjusted to a duty paid basis of ECU 0,098 from
Taiwan for
is
comparable to the equivalent dumped import price
from the People’s Republic of China found in the
previous
is also
substantially lower than the price in the previous
investigation at which the injurious effects of
dumping would have been eliminated,
i.e. ECU
0,146. It should be noted that import prices from
Taiwan were significantly lower than this in the
period 1994 to 1996, and reached their lowest
average level (ECU 0,038) in 1995.

investigation (ECU 0,081).

It

imports

(44) With regard to quantities, according to Eurostat,
during the investigation period,
from
Taiwan represented 2,5 % of the total Community
disposable flint lighter market, and 4,8 % of total
imports (including Chinese refillable flint lighters)
as compared to 0,3 % and 1,1 % respectively in
1993. At their highest point (1995) imports from
Taiwan accounted for about 10 % of total imports,
or 6 % of Community consumption of disposable
flint lighters. The decrease of imports of disposable,
non-refillable flint lighters into the Community
from the People’s Republic of China has already
been shown in recital 39.

(47)

In view of the above, the existing measures should
be extended to imports of disposable flint lighters
from Taiwan.

3. HONG KONG

3.1. Practice at issue

(48)

The request alleged that
imports of disposable,
non-refillable flint lighters from Hong Kong are
circumventing the existing measures. The request
submitted that there is no production of disposable,
lighters in Hong Kong and
non-refillable flint
therefore,
the
such imports,
Community,
registered by Eurostat, consists of
disposable, non-refillable flint lighters originating
in the People’s Republic of China which have been
incorrectly declared as being of Hong Kong origin.

into

that

any

(49) No producers from Hong Kong made themselves
known during the investigation. In the course of
the investigation further information was received
indicating that there is no production of disposable,
non-refillable flint lighters in Hong Kong, due to
security regulations which restrict the storage of gas
in the territory. The allegation was therefore exam-
ined, with regard to the possibility of transhipment,
in the light of the provisions of Article 13(1) of the
Basic Regulation.

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3.2. Undermining of the remedial effects of

the existing measures

(50)

(51)

(52)

Imports recorded as originating in Hong Kong
during the investigation period represented just
over 1 % of Community consumption of dispos-
able, non-refillable flint lighters and 3,8 % of total
Community imports of disposable, non-refillable
flint lighters.

In the course of the present investigation, it was
determined that disposable, refillable flint lighters
originating in the People’s Republic of China were
a like product to disposable, non-refillable flint
lighters.

In order to analyse whether the remedial effects of
the existing measures were being undermined, it
was necessary to reflect
the above finding and
adjust the total import volume to include dispos-
able,
from the People’s
lighters
Republic of China with the total disposable, non-
refillable flint lighters.

refillable flint

these

(53) As a result, the Commission found that imports of
disposable, non-refillable flint lighters from Hong
Kong represented only 2 % of the total imports of
non-refillable flint lighters, including Chinese refil-
lable flint lighters, into the Community during the
investigation period. Moreover,
imports
account for only 4,1 % of the volume of lighters
imported from the People’s Republic of China into
the Community in 1994, i.e. before circumvention
started to take place. In view of the small import
quantities imported from Hong Kong, the under-
the
mining,
existing measures is not considered to be signi-
ficant. It
is therefore considered appropriate to
terminate the circumvention investigation with
regard to imports of disposable non-refillable flint
lighters from Hong Kong.

the remedial effects of

if any, of

3.3. Conclusion

(54) On the basis of the above, the existing measures

should not be extended to Hong Kong.

4. MACAO

4.1. Practice at issue

(55)

imports of disposable,
The request alleged that
non-refillable flint lighters from Macao are circum-
venting
request
into the
submitted that

existing measures. The

such imports,

any

the

registered by Eurostat, consists of
Community,
disposable, non-refillable lighters originating in the
People’s Republic of China which have been incor-
rectly declared as being of Macao origin.

(56) As mentioned in recitals 6 and 7 above, FDI, a
producer located in Macao, made itself known,
returned a completed questionnaire and was sub-
sequently subject to a verification visit.

(57)

(58)

(59)

(60)

The allegation was, firstly, examined with respect to
this producer, through consideration of the specific
criteria laid down in Article 13(2) of the Basic
Regulation which apply to assembly operations,
inter alia, in a third country.

The allegation was then considered with regard to
the possibility that disposable non-refillable flint
lighters consigned from Macao to the Community
are declared to Community customs authorities as
having Macao origin although they originate in the
People’s Republic of China and that such imports
are thus circumventing the existing anti-dumping
measures. This was examined in the light of the
provisions of Article 13(1) of the Basic Regulation
taking into account the findings made with respect
to the Macao producer.

4.2. Investigation of the operation carried out
by the Macao producer in the context of
Article 13(2) of the Basic Regulation

4.2.1(a) The operation started or substantially
increased since, or just before, the initia-
the anti-dumping investigation
tion of
and the parts
concerned are from the
People’s Republic of China

FDI was registered in April 1991 and started
production in January 1992. There was, therefore, a
clear correlation in time between the start of the
operation and the initiation in April 1990 of the
original anti-dumping proceeding (1) on imports of
disposable, non-refillable flint lighters originating,
inter alia, in the People’s Republic of China. At
this time, however, the main market for FDI was
the USA. Sales to the Community in the period
1992 to 1994 were not significant.

In December 1993 the Commission announced, by
a notice, the initiation of a review of Regulation
(EEC) No 3433/91 in respect of imports of dispos-
able, non-refillable flint lighters originating in the
People’s Republic of China. Subsequently, exports
from FDI
into the Community substantially
increased to over 60 million units in 1997. The
principal criteria of Article 13(2)(a) of the Basic
Regulation are therefore fulfilled.

(1) OJ C 89, 7. 4. 1990, p. 3.

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29. 1. 1999

4.2.2(b) The parts (from the People’s Republic of
China) constitute 60 % or more of the
total value of the parts of the assembled
product

(61)

In order to ascertain compliance with the criteria
in this and the following test, the Commission
based their findings on the financial statements of
the calendar year 1997, which covered 80 % of the
15-month investigation period,
data
pertaining to this 12 month period were considered
representative for the whole investigation period.

the

as

(62) On the basis of a detailed analysis of the cost of the
parts, it was determined that the parts from the
People’s Republic of China constituted less than
60 % of the value of the parts of the assembled
product.

(63)

Therefore, FDI could not be considered to be
circumventing the anti-dumping duties under
investigation.

D. REQUESTS FOR EXEMPTION FROM THE

EXTENSION OF THE DUTY

(68)

The Commission received requests for exemption
from the extension of the duty from two importers
which approached the Commission after the dead-
line set in Regulation (EC) No 971/98 for inter-
ested parties to make themselves known.

(69) One importer, JOJA, France, requested exemption
from the measures for three of their products. The
Commission examined these products and deter-
mined that they were like products to the products
subject to the existing measures and therefore, no
exemption should be granted.

that

their

(70) A second importer, Samaco Ltd from the UK,
requested exemption from the measures, on the
grounds
genuinely
produced in Taiwan. As this importer did not
complete the questionnaire provided and as no
questionnaire response was
received from any
exporting producer in Taiwan, it is not possible to
consider the request further at this time.

imports were

4.3. Allegation that disposable, non-refillable
lighters consigned from Macao to the
Community are declared to Community
customs authorities as having Macao
origin although they originate in the
People’s Republic of China

(71)

Parties
requesting exemption will normally be
required to complete a questionnaire in order to
enable the Commission to determine whether an
exemption may be warranted and the Commission
would normally also carry out an on-the-spot veri-
fication visit.

(64)

(65)

(66)

It was then considered whether there were exports
allegedly originating in Macao, other than those
produced by FDI, which could be considered to be
circumventing the existing measures.

E. MEASURES

1. Nature of the measures

In this respect, it was found that the total imports
into the Community from Macao, as recorded by
Eurostat, during the period from 1994 to the end of
the investigation period, could be accounted for by
exports from FDI.

In addition, the on-the-spot investigation by the
Commission and a representation submitted to the
Commission by the Macao delegation of the Portu-
guese embassy indicated that
the production
capacity and the actual output of FDI was sufficient
to account
for the total exports originating in
Macao.

(72)

In view of the findings made, the anti-dumping
duty in force on gas-fuelled, non-refillable pocket
flint lighters originating in the People‘s Republic of
China should be extended to imports of the same
lighters consigned from or originating in Taiwan,
and to imports of gas-fuelled, refillable lighters,
with a plastic tank body, originating in the People’s
Republic of China or consigned from or origin-
ating in Taiwan, with a free-at-Community-frontier,
duty unpaid, value per piece of less than EUR 0,15.

(73)

The investigation concerning Hong Kong and
Macao should be terminated.

4.3.1. Conclusion

2. Collection of the duty on imports entered

under registration

(67)

In these circumstances
should not be extended to Macao.

the existing measures

(74)

The duty on imports registered pursuant to Regula-
tion (EC) No 971/98 should be collected only on
those products which are described in recital 72.

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F. PROCEDURE

Article 2

(75)

Interested parties were informed of the essential
facts and considerations on the basis of which the
Commission intended to propose the extension of
the definitive anti-dumping duty in force to the
products concerned and have been given the
opportunity to comment.

HAS ADOPTED THIS REGULATION:

Article 1

The definitive anti-dumping duty imposed by Regu-
1.
lation (EEC) No 3433/91 and modified by Regulation
(EC) No 1006/95 on imports of gas-fuelled, non-refillable
pocket flint lighters falling within CN code 9613 10 00
(TARIC code CN 9613 10 00*11) originating in the
People’s Republic of China, is hereby extended to imports
of the same lighters consigned from or originating in
Taiwan and to imports of gas-fuelled, refillable pocket
flint lighters, incorporating a plastic tank body, falling
within CN code ex 9613 20 90 (TARIC code CN
9613 20 90*21), originating in the People’s Republic of
China or consigned from or originating in Taiwan.

2. Gas-fuelled, refillable pocket flint lighters, incorpor-
ating a plastic tank body, with a free-at-Community-fron-
tier, duty unpaid, value per piece equal to or greater than
EUR 0,15, shall not be subject to the duty extended by
paragraph 1, if such a price is specified in an invoice
issued by an exporter located in the People’s Republic of
in the
China or Taiwan to an unrelated importer
Community.

3.
Subject to paragraph 2, the duty extended by para-
graph 1 shall be collected on imports registered in
accordance with Article 2 of Regulation (EC) No 971/98
and Article 14(5) of Regulation (EC) No 384/96.

4. Unless otherwise specified, the provisions in force
concerning customs duties shall apply.

1. Requests for exemption from the duty extended by
Article 1 shall be made in writing in one of the official
languages of the Community and must be signed by a
person authorised to represent the applicant. The request
must be sent to the following address:

European Commission
Directorate-General for External Economic Relations
Unit I/C-1
DEMOT 24, 8/38
Rue de la Loi/Wetstraat 200
B-1049 Brussels
Fax (32-2) 295 65 05.

2.
The Commission, after consulting the Advisory
Committee, shall authorise, by decision, the exemption of
imports which do not circumvent the anti-dumping duty
imposed by Regulation (EC) No 1006/95 from the duty
extended by Article 1.

Article 3

Customs authorities are hereby directed to discontinue
registration, pursuant to Article 2 of Regulation (EC) No
971/98 and Article 14(5) of Regulation (EC) No 384/96,
of:

(a) refillable pocket

flint

lighters with a

free-at-
Community-frontier, duty unpaid, value per piece of
less
than ECU 0,5 falling within CN code ex
9613 20 90 (TARIC code 9613 20 90*10) and origin-
ating in the People’s Republic of China; and

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

Article 4

This Regulation shall enter
into force on the day
following that of 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, 25 January 1999.

For the Council

The President

J. FISCHER