Proposal for a Council Regulation terminating the interim review and amending the definitive anti-dumping duty imposed by Council Regulation (EC) No 423/97 on imports of gas-fuelled non-refillable pocket flint lighters originating, inter alia, in Thailand insofar as the applicant is concerned
Date: 2001-07-09
Institutions: European Commission
Subjects: Thailand, anti-dumping duty, anti-dumping legislation, non-durable goods, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 09.07.2001
COM(2001) 382 final

Proposal for a

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(presented by the Commission)

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By  Regulation  (EC)  No  423/97,  the  Council  imposed  a  definitive  anti-dumping  duty  on
imports of gas-fuelled non-refillable pocket flint lighters originating, LQWHU(cid:3)DOLD, in Thailand.

In  October  2000  the  Commission  initiated  an  interim  review  pursuant  to  Article  11(3)  of
Council  Regulation  (EC)  No  384/96  following  a  request  lodged  by  the  Thai  exporting
producer Thai Merry Co., Ltd.

The investigation did not show the existence of dumping. In addition, evidence was found that
it is unlikely  that  there  will  be  in  the  foreseeable  future  a  recurrence  of  dumped  imports.  It
was  consequently  concluded  that  the  changed  circumstances  are  of  a  lasting  nature.  In  the
absence  of  dumping  it  is  therefore  considered  appropriate  to  repeal  the  measures  insofar  as
they concern Thai Merry Co., Ltd.

In  the  light  of  the  foregoing,  the  Commission  proposes  that  the  Council  adopt  the  attached
proposal for a Regulation repealing the definitive anti-dumping duty imposed by Regulation
(EC) No 423/97 on imports of gas-fuelled non-refillable pocket flint lighters originating, LQWHU
DOLD, in Thailand insofar as Thai Merry Co., Ltd. is concerned.

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Proposal for a

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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  not  members  of  the  European  Community1  and  in
particular Article 11(3) thereof,

After consulting the Advisory Committee,

Whereas:

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(1) 

Anti-dumping  duties  were  imposed  on  imports  of  gas-fuelled  non-refillable  pocket
flint  lighters  originating,  inter  alia,  in  Thailand  by  Council  Regulation  (EC)
No 423/972.  Undertakings  were  accepted  by  Commission  Decision  97/167/EC3  in
connection with the review of Council Regulation (EEC) No 3433/914.

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(2) 

1

2

3

4

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In  April  2000,  the  Thai  exporting  producer,  Thai  Merry  Co.,  Ltd.  (the  "applicant")
lodged a request for an interim review of the anti-dumping measures applicable to it,
limited  to  its  situation  of  dumping,  pursuant  to  Article  11(3)  of  Council  Regulation
(EC)  No 384/965  (the  "basic  Regulation").  The  request  alleged  that  changed
circumstances of a lasting nature, such as the decline of its production costs, had led to
a  considerably  reduced  normal  value,  which  in  turn  has  reduced  or  eliminated
dumping so that the continued imposition of the measures in respect of its imports was
no longer necessary to counteract dumping.

OJ  L  56,  6.3.1996,  p.  1,  Regulation  as  last  amended  by  Regulation  (EC)  No 2238/2000
(OJ L 257, 11.10.2000, p. 2).
OJ L 65, 6.3.1997, p. 1.
OJ L 65, 6.3.1997, p. 54.
OJ L 326, 28.11.1991, p. 1.
OJ  L  56,  6.3.1996,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  2238/2000
(OJ L 257, 11.10.2000, p. 2).

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(3) 

Having determined, after consulting the Advisory Committee, that sufficient evidence
existed  for  the  initiation  of  an  interim  review,  the  Commission  published  a  notice
("Notice of Initiation")6 and commenced an investigation.

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(4) 

(5) 

(6) 

The  Commission  officially  advised  the  representatives  of  the  exporting  country  and
the  applicant  of  the  initiation  of  the  interim  review  and  gave  all  parties  directly
concerned  the  opportunity  to  make  their  views  known  in  writing  and  to  request  a
hearing.  The  Commission  also  sent  a  questionnaire  to  the  applicant,  which  replied
within the time limits set in the Notice of Initiation.

The  Commission  sought  and  verified  all  information  it  deemed  necessary  for  the
purpose  of  a  determination  of  dumping  and  carried  out  a  verification  visit  at  the
premises of the applicant.

The  investigation  of  dumping  covered  the  period  from  1  October  1999  until
30 September 2000 (the investigation period or "IP").

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Product concerned

(7) 

The  product  concerned  is  the  same  as  in  the  previous  investigation,  i.e.  gas-fuelled
non-refillable  pocket  flint  lighters,  also  known  as  disposable  flint  lighters  currently
classifiable within CN code ex 9613 10 00.

Like product

(8) 

As  in  the  previous  investigation,  this  investigation  has  shown  that  the  lighters
produced in Thailand by the applicant and sold on the Thai market or exported to the
Community have the same physical characteristics and the same uses and therefore are
to  be  considered  a  like  product  within  the  meaning  of  Article  1(4)  of  the  basic
Regulation

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(9) 

As  far  as  the  determination  of  normal  value  is  concerned,  it  was  first  established
whether the applicant’s total domestic sales of the like product were representative in
comparison  with  its  total  export  sales  to  the  Community.  In  accordance  with
Article 2(2) of the basic Regulation, this was found to be the  case  since its  domestic
sales volume constituted at least 5% of its total export sales volume to the Community.

6

OJ C 311, 31.10.2000, p. 5.

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(10) 

It was then examined  whether for the  sole product type  exported to the Community,
sales were sufficiently representative. This was considered to be the case since, during
the IP, the total domestic sales volume of this type represented  more than 5% of the
total sales volume of the same type exported to the Community.

(11)  An examination was also made as to whether the domestic sales of that type could be
regarded  as  having  been  made  in  the  ordinary  course  of  trade,  by  establishing  the
proportion  of  profitable  sales  to  independent  customers  of  the  type  in  question.  The
profitable sales of this type representing less than 80% but more than 10% of the total
domestic  sales  volume  of  that  type,  normal  value  was  based  on  a  weighted  average
price of profitable domestic sales made during the IP.

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(12)  Since  all  export  sales  of  the  product  under  consideration  were  made  directly  to  an
independent  customer  in  the  Community,  the  export  price  was  established  in
accordance with Article 2(8) of the basic Regulation on the basis of the prices actually
paid or payable.

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(13)  For the purposes of a fair comparison by type on an ex-factory basis and at the same
level  of  trade,  due  allowance  was  made  for  differences  which  were  claimed  and
demonstrated to affect price comparability. These adjustments were made in respect of
transport,  insurance,  handling,  loading  and  ancillary  costs  and  commissions  in
accordance with Article 2(10) of the basic Regulation.

(14)  The  applicant  claimed  an  adjustment  for  advertising  costs,  on  the  basis  of  Article
2(10)(k)  of  the Basic  Regulation, on the  grounds  that these costs  were  only  made  to
stimulate  sales  on  the  domestic  market.  This  claim  had  to  be  rejected  because  the
applicant did not provide sufficient information justifying that the costs were incurred
for the  amounts claimed in relation to  sales on  the  domestic  market.  In  addition,  the
applicant  failed  to  demonstrate  that  the  very  small  amount  of  advertising  costs  had
affected prices.

(15)  The applicant claimed an adjustment for credit cost on the grounds that it was standard
practise  to  grant  45  days  of  credit  to  domestic  customers.  This  claim  was  rejected
because the applicant failed to show, e.g. by means of contracts or a clear description
of the payment terms on the invoices, that this was a factor taken into account in the
determination of the prices charged.

(16)  The  applicant  also  claimed  an  adjustment  for  duty  drawback.  Since  this  claim  was
made  substantially  beyond  the  deadline  and  even  after  the  on-spot  investigation  had
taken place, it had to be rejected.

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(17) 

In  order  to  calculate  the  dumping  margin,  the  Commission  compared  the  weighted
average normal value to the average export price to the Community.

(18)  This comparison did not show the existence of dumping for the company concerned.

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(19) 

In  accordance  with  the  Commission’s  normal  practice,  it  was  examined  whether  the
changed circumstances could reasonably be said to be of a lasting nature.

(20)  The  investigation  has  shown  that the  applicant’s production capacity remained  stable
over the last 4 years, whilst his capacity utilisation rate increased slightly from 60% to
around 70%. This increase  was due  to better  sales  performances, spread  evenly  over
both the domestic market and non-EC countries.

(21) 

It should be noted that exports to the Community, being subject to a minimum  price
undertaking  accepted  in  1997,  were  made  at  prices  substantially  higher  than  those
charged to customers in non-EC countries. However, it was found that over the last 4
years  and  on  the  basis  of  average  prices  charged  for  all  lighters,  the  applicant
consistently charged higher prices for lighters on sales to non-EC export markets than
on the domestic market.

(22)  While  the  applicant  has  spare  capacity,  which  could  be  used  to  increase  sales  to  the
Community  if  the  anti-dumping  measures  were  to  be  lifted,  the  above  findings
concerning exports to third countries, and in particular export prices to these countries,
are viewed as evidence that it is unlikely that there will be in the foreseeable future a
recurrence of dumped imports.

(23) 

It is consequently concluded that the changed circumstances, in particular the increase
in export prices to the Community combined with a substantial decrease in production
costs,  are  of  a  lasting  nature.  In  the  absence  of  dumping  it  is  therefore  considered
appropriate to repeal the measures insofar as they concern the applicant.

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(24)  The  interested  parties  were  informed  of  the  facts  and  considerations  on  the  basis  of
which  it  was  intended  to  recommend  that  the  interim  review  be  terminated,  the
undertaking  accepted  by  Commission  Decision  97/167/EC  repealed  insofar  as  the
applicant  is  concerned  and  the  anti-dumping  duty  imposed  by  Council  Regulation
(EC) No 423/97 amended  accordingly.  They were given  an opportunity  to  comment.
Their  comments  were  taken  into  account  and,  where  appropriate,  the  findings
modified accordingly.

(25) 

In  view  of  the  finding  of  non-existence  of  dumping  for  the  applicant  and  as  this
situation  is  not  considered  to  be  of  a  short-term  nature,  the  undertaking  accepted  by
Commission Decision 97/167/EC on exports of the applicant should  be  repealed, the
anti-dumping  duty  imposed  by  Council  Regulation  (EC)  No  423/97  should  be
amended accordingly and this review should be terminated.

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HAS ADOPTED THIS REGULATION:

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1. Article 2, paragraph 2.a) of Regulation (EC) No 423/97 shall be replaced by the following:

"a) 51,9 % for imports originating in Thailand (Taric additional code 8900) with the exception
of  imports  which  are  produced  and  sold  for  export  to  the  Community  by  Politop  Co.,  Ltd,
Bangkok where  the  rate  shall  be  5,8 % (Taric  additional code 8937)  and  imports  which  are
produced and sold for export to the Community by Thai Merry Co., Ltd., Samutsakorn where
the rate shall be 0% (Taric additional code 8542);"

2. Article 2, paragraph 3.a) of Regulation (EC) No 423/97 shall be suppressed.

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This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the
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This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

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