Council Regulation (EC) No 1471/2001 of 16 July 2001 terminating the interim review and amending the definitive anti-dumping duty imposed by Regulation (EC) No 423/97 on imports of gas-fuelled non-refillable pocket flint lighters originating, inter alia, in Thailand insofar as a Thai exporting producer is concerned
Date: 2001-07-16
Institutions: Council of the European Union
Subjects: Thailand, anti-dumping duty, import, non-durable goods, tobacco industry

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Official Journal of the European Communities

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COUNCIL REGULATION (EC) No 1471/2001

of 16 July 2001

terminating the interim review and amending the definitive anti-dumping duty imposed by Regula-
tion (EC) No 423/97 on imports of gas-fuelled non-refillable pocket flint lighters originating, inter
alia, in Thailand insofar as a Thai exporting producer is concerned

THE COUNCIL OF THE EUROPEAN UNION,

notice (‘Notice of
investigation.

Initiation’) (5) and commenced an

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 (1), and in
particular Article 11(3) thereof,

Whereas:

(1)

(2)

A. EXISTING MEASURES

Council Regulation (EC) No 423/97 (2)
imposed anti-
dumping duties on imports of gas-fuelled non-refillable
pocket flint lighters originating,
inter alia, in Thailand.
Undertakings were accepted by Commission Decision
97/167/EC (3) in connection with the review of Council
Regulation (EEC) No 3433/91 (4).

B. REQUEST FOR AN INTERIM REVIEW

In April 2000, the Thai exporting producer, Thai Merry
Co. Ltd (hereinafter referred to as 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 Regulation (EC)
No 384/96 (hereinafter referred to as the ‘basic Regula-
tion’). 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.

(3)

Having determined,
consulting the Advisory
Committee, that sufficient evidence existed for the initia-
tion of an interim review, the Commission published a

after

(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).

(2) OJ L 65, 6.3.1997, p. 1. Regulation as amended by Regulation (EC)

No 1508/97 (OJ L 204, 31.7.1997, p. 7).

(3) OJ L 65, 6.3.1997, p. 54.
(4) OJ L 326, 28.11.1991, p. 1.

(4)

(5)

(6)

(7)

(8)

C. PROCEDURE

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 prem-
ises of the applicant.

The investigation of dumping covered the period from 1
October 1999 to 30 September 2000 (hereinafter
referred to as the ‘investigation period’).

D. PRODUCT CONCERNED AND LIKE PRODUCT

Product concerned

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

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.

(5) OJ C 311, 31.10.2000, p. 5.

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E. DUMPING

Normal value

(9)

(10)

the determination of normal value
is
As
far as
it was first established whether the appli-
concerned,
the like product were
cant's total domestic sales of
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.

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 investigation period, 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 carried out as to whether the
domestic sales of that type could be regarded as having
been made in the ordinary course of trade, by estab-
lishing 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 investigation
period.

Export price

(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 accord-
ance with Article 2(8) of the basic Regulation on the
basis of the prices actually paid or payable.

Comparison

(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, insur-
ance, handling, loading and ancillary costs and commis-
sions in accordance with Article 2(10) of the basic Regu-
lation.

(14)

The applicant claimed an adjustment
for advertising
costs, on the basis of Article 2(10)(k) of the basic Regu-
lation, 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

information justifying that

the costs were
sufficient
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 practice 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 draw-
back. Since this claim was made substantially beyond the
deadline and even after the on-spot investigation had
taken place,

it had to be rejected.

Dumping margin

(17)

In order to calculate the dumping margin, the Commis-
sion 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.

F. LASTING NATURE OF CHANGED CIRCUMSTANCES
AND LIKELIHOOD OF RECURRENCE OF DUMPING

(19)

(20)

(21)

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.

The investigation has shown that the applicant's produc-
tion capacity remained stable over the last 4 years,
whilst its 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.

charged to customers

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
in non-EC countries.
those
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.

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(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)

(24)

(25)

It is consequently concluded that the changed circum-
stances, 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 appli-
cant.

G. REPEALING OF THE MEASURES

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 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 modi-
fied accordingly.

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
the anti-dumping duty
applicant should be repealed,

imposed by Regulation (EC) No 423/97 should be
amended accordingly and this review should be termi-
nated,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 423/97 is hereby amended as follows:

1. Article 2(2)(a) 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(3)(a) shall be deleted.

Article 2

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Communi-
ties.

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

Done at Brussels, 16 July 2001.

For the Council

The President

L. MICHEL