Council Regulation (EC) No 1824/2001 of 12 September 2001 imposing a definitive anti-dumping duty on imports of gas-fuelled, non-refillable pocket flint lighters originating in the People's Republic of China and consigned from or originating in Taiwan and on imports of certain refillable pocket flint lighters originating in the People's Republic of China and consigned from or originating in Taiwan
Date: 2001-09-12
Institutions: Council of the European Union
Subjects: China, Taiwan, anti-dumping duty, import, manufactured goods, originating product

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1824/2001

of 12 September 2001

imposing a definitive anti-dumping duty on imports of gas-fuelled, non-refillable pocket flint
lighters originating in the People's Republic of China and consigned from or originating in Taiwan
and on imports of certain refillable pocket flint lighters originating in the People's Republic of
China and consigned from or originating in Taiwan

THE COUNCIL OF THE EUROPEAN UNION,

B. PRESENT INVESTIGATION

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(2) and (6) thereof,

Having regard to the proposal submitted by the Commission,
after consulting the Advisory Committee,

Whereas:

A. PREVIOUS PROCEDURES AND EXISTING MEASURES

(1)

(2)

(3)

In 1991, the Council, by Regulation (EEC) No 3433/
91 (2), imposed, inter alia, a definitive anti-dumping duty
of 16,9 % on imports of gas-fuelled, non-refillable
pocket flint lighters (‘non-refillable lighters’) originating
in the People's Republic of China (‘China’).

In 1995, by Council Regulation (EC) No 1006/95 (3), the
original ad valorem duty was replaced by a specific duty
of ECU 0,065 per lighter.

By Regulation (EC) No 192/1999 (4) the Council, further
to an anti-circumvention investigation, extended the
above measures to (a) imports of gas-fuelled non-refil-
lable pocket flint lighters consigned from or originating
in Taiwan and (b) imports of certain refillable lighters
originating in China or consigned from or originating in
Taiwan with a free-at-Community frontier, duty unpaid
value per piece lower than EUR 0,15.

(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 326, 28.11.1991, p. 1.
(3) OJ L 101, 4.5.1995, p. 38.
(4) OJ L 22, 29.1.1999, p. 1.

(4)

(5)

(6)

(7)

1. Request for a review

impending
Following the publication of a notice of
expiry (5) of
imposed by
the anti-dumping duties
Council Regulation (EC) No 1006/95 as extended by
Council Regulation (EC) No 192/1999 (‘existing meas-
ures’), the Commission received a request to review the
existing measures pursuant to Article 11(2) of Council
Regulation (EC) No 384/96 (‘the basic Regulation’).

The request was lodged on 3 February 2000 by the
European Lighters Manufacturers Federation (‘ELMF’ or
‘the applicant’), on behalf of Community producers
the Community
representing a major proportion of
(‘the applicant
production of non-refillable lighters
Community producers’).

2. Notice of initiation

after

Having determined,
consulting the Advisory
Committee, that sufficient evidence existed for the initia-
tion of an expiry review, the Commission initiated an
investigation (6) pursuant to Article 11(2) of the basic
Regulation.

3. Period of investigation

The investigation into the continuation and/or recur-
rence of dumping and injury covered the period from 1
January 1999 to 31 March 2000 (the ‘investigation
period’ or ‘IP’). The examination of the trends relevant
for the assessment of the likelihood of a continuation
and/or recurrence of injury covered the period from 1
January 1996 to the end of the IP (the ‘period under
review’).

(5) OJ C 318, 5.11.1999, p. 3.
(6) OJ C 127, 5.5.2000, p. 15.

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4. Parties concerned by the investigation

lighters falling under CN code 9613 10 00 (TARIC code
9613 10 00*19) (1).

(8)

The Commission officially advised the Community
industry, the exporters and producers in China and their
representatives, the Chinese authorities and the impor-
ters and users known to be concerned, of the initiation
of the review. The Commission sent questionnaires to all
these parties and to those who made themselves known
within the time limit set in the notice of initiation. In
the producer in the analogue country was
addition,
contacted and received a questionnaire. The parties
directly concerned were given the opportunity of
making their views known in writing and of requesting a
hearing.

(9)

The applicant Community producers replied to the ques-
tionnaires. Further information was received from one
non-applicant Community producer who did not
oppose the proceeding.

(10)

The exporting producers in China did not reply to the
Commission's questionnaire and did not cooperate in
the investigation.

(15)

(11) Out of the 72 unrelated importers and users contacted,
only 13 replied and claimed not to have imported or to
have discontinued imports of the product concerned
originating in China. Of those 13, two importers replied
fully to the questionnaire.

5. Verification of information received

(12)

The Commission sought and verified all
information
deemed necessary to determine whether or not there is a
likelihood of a continuation or recurrence of dumping
and injury and whether or not the continued imposition
of
the Community
interest. Verification visits were carried out at the prem-
ises of the following companies:

the measures would be against

(a) Community producers:

BIC SA, Clichy Cedex, France

Flamagas SA, Barcelona, Spain

(14) As shown in the previous investigations,

least

it has been
established that non-refillable lighters produced and sold
by the applicant Community producers and those
imported from China are in all respects identical or
share at
the same basic physical and technical
characteristics and that no differences in usage exist
among them. The same is true for those produced and
sold in the Philippines which served as an analogue
country. Therefore, they are considered to be like prod-
ucts within the meaning of Article 1(4) of the basic
Regulation.

D. LIKELIHOOD OF A CONTINUATION OR RECUR-

RENCE OF DUMPING

1. Preliminary remarks

The findings on dumping set out below should be
viewed in the light of the fact that the Chinese exporting
producers did not cooperate in the investigation and
that findings therefore had to be based on facts available,
i.e. Eurostat and Chinese export trade data, pursuant to
Article 18 of the basic Regulation. The market share
represented by the imports concerned was significant at
the time of the original
investigation, when it repre-
sented around 11 % of the total Community consump-
tion. In the period following the imposition of the anti-
dumping measures, this market share decreased to 9 %
in 1995, and went down substantially thereafter to
around 1,3 % during the IP.

2. Likelihood of a continuation of dumping

(a) Analogue country

(16)

The existing measures provide for a single countrywide
duty on all imports into the Community of non-refil-
lable lighters originating in China. In accordance with
Article 11(9) of the basic Regulation, the Commission
employed the same methodology as in the original
investigation. Accordingly, normal value was determined
on the basis of
information obtained in a market
economy third country (‘the analogue country’).

Tokai Europe GmbH, Mönchengladbach, Germany

(17)

Swedish Match Lighter BV, Assen, the Netherlands.

(b) Producers in the analogue country

Swedisch Match Philippines INC., Manila, Philip-
pines.

(c) Unrelated importers in the Community

Daalgo, SL, Valencia, Spain.

Thailand had served as an analogue country in the orig-
inal investigation. In the subsequent review the Philip-
pines had been used as an analogue country as the Thai
producers refused to cooperate and since it was found
that, taking into account the size of its domestic market,
the openness of its market and its degree of access to
parts and components, the Philippines was an appro-
priate and not unreasonable choice of analogue country.
In the notice of initiation of this expiry review it was
therefore envisaged to choose the Philippines again as
analogue country for the purpose of establishing normal

C. PRODUCT UNDER CONSIDERATION AND LIKE

PRODUCT

(13)

The product under consideration is the same as in the
i.e. gas-fuelled, non-refillable
original

investigations,

(1) This TARIC code was added to the original code 9613 10 00*11 as
of 1 July 2000. It is recalled — see recital 3 — that the measures
were extended to non-refillable lighters originating in or consigned
from Taiwan (TARIC codes 9613 10 00*19 and *11) and to certain
refillable lighters originating in China and Taiwan, or consigned
from Taiwan, falling under CN code ex 9613 20 90 (TARIC code
9613 20 90*21).

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the findings of

the
value. Since it was found that
previous review investigation were still valid, as no inter-
ested party commented on this choice of analogue
country and since the Filipino producer which was
contacted agreed to fully cooperate, the Philippines was,
therefore, in accordance with Article 2(7) of the basic
Regulation, considered to be an appropriate and not
unreasonable choice of analogue country for establishing
normal value in respect of China for
the product
concerned.

(b) Normal value

(18)

(19)

Firstly, it was established that the domestic sales of the
Filipino producer were made in sufficient quantities and
thus considered representative within the meaning of
Article 2(2) of the basic Regulation.

trade,

It was subsequently examined whether the domestic
sales of the cooperating Filipino producer to indepen-
dent customers could be considered to have been made
in the ordinary course of
in accordance with
Article 2(4) of the basic Regulation. It was found that
the weighted average selling price of all domestic sales
during the investigation period was above the weighted
average unit cost of production, and that the volume of
individual sales transactions below unit cost of produc-
tion was less than 20 % of the sales being used to
determine normal value;
therefore all domestic sales
were regarded as having been made in the ordinary
course of trade.

(20) Normal value was therefore determined, as set out in
Article 2(1) of the basic Regulation, on the basis of the
price paid or payable, in the ordinary course of trade, by
independent domestic customers of the cooperating Fili-
pino producer during the investigation period, i.e. the
weighted average of prices of all domestic sales per
model made during the IP irrespective of whether these
sales were profitable or not.

(c) Export price

(21) As regards the exports to the Community, given that
exporting producers in China did not cooperate, findings
had to be based on the facts available, in accordance
with Article 18(1) of the basic Regulation. The export
price was thus determined on the basis of documented
offers since the level of prices found in them was
confirmed by Chinese export trade data.

(d) Comparison

(22)

For the purpose of a fair comparison, and in accordance
with Article 2(10) of the basic Regulation, due allowance
in the form of adjustments was made for differences in
respect of transport and credit costs, which were demon-
strated to affect prices and price comparability.

(e) Dumping margin

(23)

(24)

In accordance with Article 2(11) of the basic Regulation,
the weighted average normal value, on an ex-works
Philippines basis, was compared to the weighted average
export price on an ex-works China basis, at the same
level of trade. The above comparison showed the exis-
tence of very significant dumping. The dumping margin
found was substantially higher than the 80,3 % found in
the previous investigations.

The investigation did not reveal any reason why the level
of dumping would disappear or decrease if the measures
were to be repealed. It was therefore concluded that
there is a likelihood of continuation of dumping.
However, given the low level of imports originating in
China during the IP, it was considered appropriate to
also examine whether there would be a recurrence of
dumping in increased export volumes
should the
existing measures be repealed.

3. Likelihood of recurrence of dumping

(25)

For the purposes of the examination of a likelihood of
recurrence of dumping in significant quantities the
following factors were assessed: existence of dumping
and the background of circumvention, the evolution of
production and capacity utilisation in China, and the
evolution of world-wide Chinese lighter exports.

(26)

(27)

(28)

(a) Existence of dumping and background of circumvention

The dumping margin established in the previous investi-
gations was high. The investigation carried out under the
present review indicates that dumping has not been
eliminated and was even substantially higher than during
the previous investigations.

Furthermore, there is a record of circumvention of the
anti-dumping measures imposed. This took place by way
of transshipment through Taiwan and modification of
the product whose only purpose was to avoid the
payment of the anti-dumping duty. Consequently, as
stated in recital 3, the measures were extended in 1999
to Taiwanese imports and to imports of certain refillable
lighters from China.

The results of the anti-circumvention investigation as
well as the current relatively low level of imports into
the Community from China of the product concerned
appear to demonstrate that while Chinese exporting
producers continued to have a strong interest in selling
to the Community,
they could not compete on the
Community market with their products at a non-
dumped level.

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(29)

(30)

(b) Evolution of production and capacity utilisation in China

The only data on domestic production and consumption
of lighters in China were made available to the Commis-
sion by the applicant in its request for this review and
during the investigation, as Chinese exporting producers
did not cooperate. While the available data could not be
confirmed by independent sources, no reason was found
to dismiss them.

Chinese production of flint lighters alone has been esti-
mated at 2,5 billion, more than twice the Chinese
domestic consumption of the product concerned, esti-
mated at 1,1 billion to 1,4 billion units including piezo
lighters, which are not the product concerned. However,
these figures are clearly underestimated if compared to
the Chinese export statistics (see recital 33).

(31) According to the website www.globalsources.com there
are 786 suppliers of cigarette lighters in China, of which
140 for non-refillable and 161 for refillable lighters. The
lists a
self-proclaimed biggest
three
monthly capacity of 45 million lighters. Also,
random companies, among the 20 biggest known, claim
to produce or to have the capacity of producing 1
billion lighters a year;
than the total
Community consumption of refillable and non-refillable
lighters.

lighter manufacturer

slightly less

(32)

Consequently, the enormous production capacity avail-
able in China combined with the size of the Chinese
domestic market gives Chinese exporting producers
considerable flexibility to switch both between markets
and product types. These producers are therefore able to
quickly increase production and direct it to any export
market, including, were the measures to be repealed, the
Community market.

(c) Evolution of Chinese exports to third countries

1. G e n e r a l

t r e n d o f

i n c r e a s i n g e x p o r t s

(33) On the basis of Chinese export trade data, it was estab-
lished that Chinese worldwide exports increased from
1,9 billion units of non-refillable lighters and 0,2 billion
units of refillable lighters in 1996 to 2,7 billion and 0,7
billion units in 2000.

(34)

Furthermore, a significant fall
in prices was observed,
from USD 0,06 in 1996 to USD 0,03 in 2000 for
non-refillable lighters and from USD 0,31 in 1996 to
USD 0,14 in 2000 for refillable lighters.

2. P o s s i b l e d e f l e c t i o n o f C h i n e s e e x p o r t s d u e
t o t h e i n t r o d u c t i o n o f r e s t r i c t i o n s i n t h i r d
c o u n t r i e s

(35) According to the available information, Canada and the
United States of America have imposed import restric-

is

tions on Chinese lighters because of safety concerns. The
American market
closed for non-child-resistant
lighters and at the end of 1999 Canada forbade the
entrance of Asian lighters for safety reasons. This shows
that there is pressure on Chinese exporting producers to
find alternative export markets.

3. C h i n e s e

e x p o r t s

t o o t h e r

r e p r e s e n t a t i v e

e x p o r t m a r k e t s

(36)

It is important to note that, after the Council imposed
anti-dumping duties in 1995, exporting producers from
China easily penetrated other large export markets such
as, for instance, Indonesia and, to a lesser extent, Russia
and Japan, by charging export prices at similarly low
levels as those to the Community.

(37)

(38)

(39)

4. Conclusion

The investigation has clearly shown that while the
volume of non-refillable lighters imported into the
Community from China during the investigation period
was relatively small, the level of dumping found for
these imports was even higher than in previous investi-
gations.

The investigation has also shown that the volume of
Chinese non-refillable lighter exports to the Community
would in all probability reach substantial
levels if the
existing measures were to be repealed. This conclusion
was reached in view of the substantial spare capacity
available in China and the degree of circumvention
found. This illustrates the strong continued interest of
the
producers
Chinese
Community.

exporting

selling

to

in

It was also concluded that such substantially increased
exports to the Community would most likely be made at
dumped prices. This is demonstrated by the low prices
found for Chinese exports to other main third country
markets. It is unlikely that Chinese exporting producers
could resume significant exports to the Community
without charging similarly low export prices, in partic-
ular since the current exports to the Community, even if
not significant in terms of volume, are already dumped.

(40)

In summary, it is highly probable that imports to the
Community from China will resume in significant quant-
ities and at significant dumped prices, should measures
be repealed.

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E. DEFINITION OF THE COMMUNITY INDUSTRY

2. Consumption on the Community market

(41)

constitute

and therefore

The applicant Community producers represent about
95 % of the Community production of non-refillable
lighters
the Community
industry within the meaning of Article 4(1) and Article
the basic Regulation. The other Community
5(4) of
producer was not considered to form part of
the
Community industry since it did not fully cooperate but
only gave certain information necessary to establish the
consumption
the
non-refillable
Community.

lighters

of

in

F. ANALYSIS OF THE SITUATION OF THE COMMUNITY

MARKET

(43)

The apparent consumption in the Community of the
product under consideration was established on the
basis of:

— the units sold by the Community industry of its

own-produced, non-refillable lighters,

— the units sold by the non-applicant Community

producer,

— the

imports of non-refillable

lighters

into the

Community from China based on Eurostat data,

— the

imports of non-refillable

into the
Community from all other third countries based on
Eurostat data.

lighters

1. General remark

(42)

To ensure comparability of annual trends, all parameters
examined in the 15-month IP were annualised by multi-
plying the verified data by 12/15.

(44) On this basis, the consumption of non-refillable lighters
on the Community market decreased from about 873
million units in 1996 to about 770 million in the IP.
Consumption decreased between 1996 and 1998 by
14,3 %, and subsequently increased in 1999 and during
the Community
the IP. The overall contraction of
consumption during the period under
review was
11,8 %.

Community consumption

Volume
(million units)

1996 = 100

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

872,881

785,833

747,784

761,478

769,551

100,0

90,0

85,7

87,2

88,2

– 11,8

Sources: Questionnaire replies from the Community industry and the other Community producer, extrapolations from Eurostat.

(45)

These figures are however underestimated since they do not include certain refillable lighters which
amounted to around 153 million in 1997 and 104 million in the IP.

3. Evolution of imports originating in China

(a) Import volumes and market shares

(46) Given that the specific duty of ECU 0,065 per unit was established in 1995, import figures are also
given for that year and the trend is calculated accordingly. Imports went down from almost 80
million units in 1995 to fewer than 10 million in the IP. Their market share dropped accordingly.
Consumption in 1995, estimated at 882 million, was marginally different from that in 1996.

Imports from China

1995

1996

1997

1998

1999

IP

Volume
(million units)

79,569

12,244

7,721

18,956

10,345

9,789

Market share in %

9,0 (1)

1,4

1,0

2,5

1,4

1,3

(1) Calculated on the 1996 consumption (1995 not available).
Source: Eurostat.

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(b) Price evolution of the imports

(47) After the imposition of an anti-dumping duty against non-refillable lighters originating in China,
prices, according to the best evidence available gathered from Eurostat, Chinese statistics and
documented offers by Chinese operators still remained lower than the Community industry's prices.
On the basis of the findings for the IP, the price difference, at the same level of trade, was around
48 %, even including the anti-dumping duty.

4. Economic situation of the Community industry

(a) General comment

(48) At first sight, the measures seem successful with respect to the developments of certain economic
indicators. However, the situation of the Community industry must also be judged in the light of the
circumvention that was found to take place and which led to the extension of the anti-dumping duty
in 1999.

(b) Production

(49) As shown in the table below, the Community industry's production of non–refillable lighters
decreased from 1 038 million to 912 million, i.e. by about 12 %, during the period under review.
The Community industry undertook important restructuring during the same period to face the
competition of low-priced imports. Production was adapted to obtain economies of scale and
competitiveness was improved to respond to the evolution of demand, such as the increasing
consumption and imports of piezo lighters. It should be pointed out that two manufacturing plants,
in Greece and France, were closed down during the period under review.

Production

1996

1997

1998

1999

IP

∆ 1996 to IP

Million units

1996 = 100

1 038,3

1 015,8

943,9

100,0

97,8

90,9

890,3

85,8

911,7

87,8

– 12,2 %

Source: Questionnaire replies from Community industry.

(c) Capacity and capacity utilisation rates

(50)

Production capacity of the Community industry decreased from 1 221 million units in 1996 to
1 195 million units in the IP, or 2,1 %. Capacity utilisation decreased from 85 % to 76 %.

Capacity

1996

1997

1998

1999

IP

∆ 1996 to IP

Million units

1 220,6

1 249,0

1 277,9

1 186,5

1 195,4

1996 = 100

100,0

102,3

104,7

97,2

97,9

– 2,1

Capacity
in %

utilisation

rate

85,1

81,3

73,9

75,0

76,3

– 10,3

Source: Questionnaire replies from the Community industry.

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(d) Sales in the Community

(51)

The sales volume of the Community industry in the Community during the period under review
increased by 4,9 %: from around 555 million units in 1996 to around 582 million units in the IP.

Total Community sales

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

Units (million)

1996 = 100

555,070

585,924

587,301

583,180

582,292

100,0

105,6

105,8

105,2

104,9

4,9

Source: Questionnaire replies from the Community industry.

(e) Market share

(52)

The Community industry's market share increased from around 64 % to around 76 %.

Community industries market share

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

In per cent

1996 = 100

63,6

100

74,6

117,3

78,5

123,4

76,6

120,4

75,7

119,0

19,0

Source: Questionnaire replies from the Community industry and Eurostat.

(f) Sales prices in the Community

(53)

The investigation showed that
the product
concerned dropped by 8 % during the period under review, from 0,237 ECU/unit in 1996 to
0,217 EUR/unit in the IP. These average prices, after falling in 1997 and in 1998, slightly increased
and stabilised in 1999 and the IP.

the Community industry's average sales price of

Average sales price

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

Community industry
(ECU/EUR/unit)

0,237

0,228

0,216

0,218

0,217

1996 = 100

100

96,2

91,1

92,0

91,6

– 8,4

Source: Questionnaire replies from the Community industry.

(g) Profitability

(54) Weighted average profit of the Community industry, expressed as a percentage of net sales, for
non-refillable lighters, decreased from 11,1 % in 1996 to 6,9 % in the IP. It should be noted that the
profitability varies considerably among the members of the Community industry. In addition, one
major company maintained that profitability between its flint and electronic lighters could not be
separated and that the latter were more profitable. With this background, the profitability figures
listed below could be overstated. Another member of the Community industry attributed the marked
deterioration of its profitability during 1998 and 1999 to important setbacks of its exports to third
countries; hence reduced production and higher overall production costs.
the
Community industry did not achieve the 15 % profit deemed appropriate in the original Regulation
(EEC) No 3433/91 (recital 16) and in Regulation (EC) No 1006/95 (recital 63) or the 10 % profit
deemed appropriate in Regulation No 423/97 (1) on imports of non-refillable lighters originating in
Thailand, the Philippines and Mexico (recital 81).

In conclusion,

(1) OJ L 65, 6.3.1997, p. 1.

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(55)

The profitability of the Community industry on the Community market for the product under
consideration developed as follows:

Profit rate

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

In per cent

1996 = 100

11,1

100,0

10,3

92,8

7,5

67,6

6,2

55,9

6,9

62,2

– 37,8

Source: Questionnaire replies of the Community industry.

(h) Employment

(56)

Employment for the product under consideration in the Community industry declined from 1 716
employees in 1996 to 1 496 employees in the IP, i.e. by 13 %. The reduction is due in essence to the
Community industry's effort to increase competitiveness. It entailed closing two production sites as
already mentioned, heightened automatisation in the manufacturing and assembling process and
centralisation of sales activities.

The employment situation of the Community industry developed as follows:

Personnel (Non-refillable lighters)

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

Manufacturing

Other

1 467

249

1 428

243

1 395

241

1 287

230

1 270

226

Total number

1 716

1 671

1 636

1 517

1 496

1996 = 100

100,0

97,4

95,3

88,4

87,2

– 12,8

Source: Questionnaire replies from the Community industry.

(i) Productivity

(57) Measured on the yearly number of lighters produced by the manufacturing personnel, productivity
increased slightly from about 707 000 units in 1996 to around 718 000 in the IP, i.e. by around
2 %.

(j) Stocks

(58)

The closing stocks of the Community industry for non-refillable lighters decreased from 166 million
units in 1996 to 160 million units in the IP,

i.e. by around 4 %.

Stocks developed as follows:

Closing stocks

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

Units (millions)

1996 = 100

166,4

100,0

178,9

107,5

168,3

101,1

162,8

97,8

159,3

95,7

– 4,3

Source: Questionnaire replies from the Community industry.

(k) Investments

(59)

Total
investments of the Community industry for non-refillable lighters decreased from around
ECU 15 million in 1996 to around EUR 12 million in the IP. The level of investment by the
Community industry reflects its efforts to streamline its production. These investments developed as
follows:

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Investments

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

Million ECU/EUR

15,158

15,494

9,066

13,893

12,016

1996 = 100

100,0

102,2

59,8

91,6

79,3

– 20,7

Source: Questionnaire replies from the Community industry.

(l) Return on investments

(60)

Return on investments of the Community industry decreased from 41 % in 1996 to 14 % in the IP.
It developed as follows:

Return on investments

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

In per cent

1996 = 100

41

100,0

34

82,9

17

41,5

16

39,0

14

34,2

– 65,8

Source: Questionnaire replies from the Community industry.

(m) Cash flow

(61)

Cash flow of the Community industry progressed favourably during the period under review,
although it started to decrease during the IP. It developed as follows:

Cash flow

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

Million ECU/EUR

15,575

24,116

17,217

22,397

21,102

1996 = 100

100,0

154,8

110,5

143,8

135,5

35,5

Source: Questionnaire replies from the Community industry.

(n) Wages

(62) Wages paid by the Community industry increased per year on a pro-capita basis from ECU 33 069

in 1996 to EUR 34 828 in the IP, an increase of about 5 %.

Wages

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

ECU/EUR/person/year

33 069

33 553

33 649

34 597

34 828

1996 = 100

100,0

101,5

101,8

104,6

105,3

5,3

Source: Questionnaire replies from the Community industry.

(o) Ability to raise capital

(63) During the period under review the Community industry did not experience problems in raising
funds, either through the groups some of the members belong to or through short-term bank credits.

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(p) Magnitude of dumping

(64) As concerns the impact on the situation of the Community industry of the magnitude of the actual
margin of dumping found during the investigation period, it should be noted that the margin found
for China is significantly higher than that found in the original investigation. The situation of the
Community industry improved to a certain extent after the imposition of measures, but it has not
completely recovered. Therefore, should measures be repealed, the impact of the dumping margin
found in the current investigation would be significant.

5. Export activity of the Community industry

(65)

The Community industry's exports of non-refillable lighters to third countries amounted to 359
million units in the IP compared to 495 million in 1996. The overall decrease, about 27 % during
the period under review, is to be seen in the context of the exports from China to markets other than
the Community after the anti-dumping measures in 1995 came into force, as well as serious
economic downturns suffered by certain importing third countries.

(66)

In detail, the development during the period under review was as follows:

Export volumes of the Community industry

1996

1997

1998

1999

IP

∆ 1996 to IP
(%)

In million units

494,775

477,459

432,232

376,281

359,031

1996 = 100

100,0

96,5

87,4

76,1

72,6

– 27,4

Source: Questionnaire replies from the Community industry.

(67)

(68)

(69)

6. Import volumes and prices from other third countries

The total
import volumes of non-refillable lighters from all third countries other than China
decreased during the period under review from about 292 million units in 1996 to 165 million in
the IP, corresponding to market shares of 33,5 % and 21,4 % respectively. Taiwan, a major exporter
in 1997, exported only minor quantities in the IP, following the adoption of Regulation (EC) No
192/1999. Since then the major exporters into the Community have been Indonesia, Malaysia and
Vietnam. Indeed imports from these three countries increased from about 17 million units in 1996
to 109 million in the IP; and their corresponding market shares went from 2,0 % to 14,2 %. Average
import prices from these three countries decreased over the period under review and were on
average as low as 0,067 EUR/unit in the IP. Thus, they were significantly lower than those of the
Community industry, but higher than the available prices of the Chinese imports.

7. Conclusion

Since the measures originally imposed were amended in 1995 and extended in 1999, the situation of
the Community industry has improved in respect of a number of economic indicators.

Certain economic factors in the Community, such as sales volumes and market share, as well as
stocks, have shown positive developments for the Community industry during the period under
review. Sales volumes rose by 4,9 % and the corresponding market share by 19 %; during the same
period stock volumes decreased by about 4 %. Meanwhile, the Community industry's profitability
decreased from 11 % in 1996 to about 7 % in the IP, far below the profit margins of 15 % and 10 %
deemed appropriate in the earlier investigations. This investigation established that the generally
positive factors except profitability were made possible because of the introduction of more effective
anti-dumping measures during the previous years and as a result of the restructuring of the
Community industry's facilities. However,
it also made clear that competition from imported
non-refillable lighters, especially resulting from circumvention activities, forced the Community
industry to lower its selling prices by more than 8 %, thus negatively affecting profitability.

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(70)

It has appeared that the market share once held by the Chinese exporters was replaced by low-priced
imports from other third countries not subject to anti-dumping duties and by increased sales by the
Community industry. The Chinese market share was reduced from about 9 % in 1996 to slightly
above 1 % in the IP. At the same time the Community industry improved its own market share to
around 76 % in the IP compared with less than 64 % in 1996. Together with the anti-dumping
measures, the in-depth restructuring prompted these favourable effects: two factories were closed
down and the remaining facilities streamlined; notably at the expense of personnel, which was
reduced by almost 13 % during the period under review. Capacity was reduced by 2 %; but at the
same time production was reduced by 12 % and capacity utilisation went down by 10 %.

(71)

In conclusion the investigation established that, although the situation of the Community industry
has improved,

it is likely to deteriorate if the measures were to be repealed.

G. LIKELIHOOD OF RECURRENCE OF INJURY

(72)

(73)

In order to assess the likely effect of the expiry of the measures in force, a number of factors were
examined, in particular the availability of unused capacity in China, the exporters' behaviour on the
Community market and on other third markets, the prices the exporters might charge if the duty
were allowed to expire and the likely impact of these factors on the Community industry.

The information available, already reviewed in recitals 30 to 34, as well as the history of the past
years demonstrate that there is a huge disproportion in China between consumption on the one
hand and capacity and production on the other hand. Considering the attractiveness of
the
Community market, together with the safety rules limiting access to certain third country markets,
the export potential of China at low prices towards the Community is very high. Chinese export
prices to third countries in the year 2000 were, on average, even lower than those to the
Community. Moreover, the lapsing of measures against Chinese imports would entail the lapsing of
the circumvention measures with regard to certain refillable lighters from China and Taiwan. The
imports of lighters covered by these measures, even if declining in volume (from almost 200 million
units in 1998 at ECU 0,065 per unit according to Eurostat) were still high in 2000 with almost 52
million units.

(74)

In conclusion, in the absence of measures, there is likelihood of recurrence of injury and, having also
regard to the situation on dumping, there is likelihood of recurrence of injurious dumping.

H. COMMUNITY INTEREST

1. Introduction

(75) According to Article 21 of the basic Regulation, the Commission examined whether a prolongation
of the existing anti-dumping measures would be against the interest of the Community as a whole.
The determination of the Community interest must be based on an appreciation of all the various
interests, such as the Community industry, the importers and users of the product concerned.

(76)

In the preceding investigations the adoption, amendment and extension of the measures against
dumped non-refillable lighters were considered not to be against the interests of the Community.
Furthermore, in the context of an expiry review, the scrutiny of a situation in which anti-dumping
measures have been in place allows assessment of any negative, undue impact of the anti-dumping
measures in force on the parties concerned.

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(77)

(78)

(79)

(80)

(81)

(82)

In order to assess the likely impact of a continuation of the measures, the Commission requested
information from all interested parties mentioned above. In addition to the Community industry,
questionnaires were sent to 72 importers. Together with the two meaningful replies mentioned, few
other comments were received. All of them were taken into account to examine whether, despite the
findings of the likelihood of recurrence of injurious dumping, there were compelling reasons which
would lead to the conclusion that it is not in the Community interest to maintain the existing
measures.

2. Interest of the Community industry

If the anti-dumping measures were repealed, dumped and low-priced imports on the Community
market would massively increase and the situation of the Community industry would start deterior-
ating again.

The Community industry is structurally viable;
its
operations and has invested heavily in recent years to enhance its competitiveness. However, it can
be concluded that, without the continuation of anti-dumping measures, its situation will most likely
deteriorate.

it has undergone in-depth restructuring of

3. Interests of importers and traders

The few replies obtained from the importers/traders seem to indicate only a small interest for this
review investigation, notably because of the availability of alternative sources abroad.

The importers who made themselves known consider that the existing measures should not be
prolonged. Their main concern is that
imports of non-refillable lighters could be completely
excluded from the Community market, thus reducing free competition in the Community and
triggering excessive prices and the switch to cheaper advertising gadgets, other than lighters, on the
part of the users, who distribute such gadgets to final consumers buying their main products or
services. One importer stated that the imposition of anti-dumping duties prompted him to stop
trading in imported lighters. Considering the flow of imports during the period under review, his
decision appears to be the result of other considerations than any shortage of available lighters not
subject to duties.

It is true that imports of flint lighters from China and Taiwan have diminished, however the imports
originating in other exporting countries, together with the existence of five known Community
producers, have guaranteed competition on the Community market. It is therefore confirmed that
importers and traders have enjoyed easy access to the product under consideration from third
sources other than the Community industry and the imports concerned. Finally, these operators have
also increasingly been relying on piezo lighters. In other terms, the impact of a prolongation of the
existing measures on these imports is likely to be minimal.

(83)

The available data indicate that profitability of the cooperating importers has not been negatively
influenced by the imposition of the anti-dumping measures and is likely not to suffer future, adverse
effects if the existing measures are maintained.

4. Interests of consumers

(84) Given the above, it is concluded that there are no compelling reasons on the grounds of Community

interest against the continuation of the measures.

5. Consequences for competition on the Community market

(85)

Considering that competition has remained strong on the Community market amongst Community
producers, the imports concerned and imports originating in third countries, it can be concluded
that the continuation of the existing measures will not adversely affect the future competitive
environment for the product under consideration on the Community market.

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(86) Given the above, it is concluded that there are no compelling reasons on the grounds of Community

interest against the continuation of the measures.

6. Conclusion on Community interest

I. ANTI-DUMPING MEASURES

(87) All parties were informed of the essential facts and considerations on the basis of which it is
intended to recommend the maintenance of the existing measures. They were also granted a period
to make representations subsequent to this disclosure. No comments which were of a nature to
change the above conclusions were received.

It follows from the above that, as provided for by Article 11(2) of the basic Regulation, the
anti-dumping measures applicable to imports of gas-fuelled, non-refillable pocket flint lighters ,and
to certain refillable lighters, originating in China or consigned from or originating in Taiwan,
imposed by Regulation (EEC) No 3433/91 as amended by Regulation (EC) No 1006/95 and as
extended by Regulation (EC) No 192/1999, should be maintained,

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on imports of gas-fuelled, non-refillable pocket flint
lighters falling within CN code 9613 10 00 (TARIC code 9613 10 00*19) originating in the People's
Republic of China.

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

2.
set at EUR 0,065.

Article 2

The anti-dumping duties extended by Regulation (EC) No 192/1999 on imports of certain refillable pocket
flint lighters originating in the People's Republic of China or consigned from or originating in Taiwan,
falling within CN code ex 9613 20 90 (TARIC codes 9613 20 90*21 and 9613 20 90*29) and to imports
of non-refillable lighters consigned from Taiwan and falling within CN code 9613 10 00 (TARIC code
9613 10 00*11) or originating in Taiwan and falling within CN code 9613 10 00 (TARIC code
9613 10 00*19) are maintained.

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

Article 3

This Regulation shall enter into force on the day following its publication in the Official Journal of the
European Communities.

Article 4

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

Done at Brussels, 12 September 2001.

For the Council

The President

L. MICHEL