Proposal for a Council Regulation imposing anti-dumping duties on imports of integrated electronic compact fluorescent lamps (CFL-i) originating in the People's Republic of China following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 384/96 and extending to imports of the same product consigned from the Socialist Republic of Vietnam, the Islamic Republic of Pakistan and the Republic of the Philippines
Date: 2007-09-14
Institutions: European Commission
Subjects: China, Pakistan, Philippines, Viet Nam, anti-dumping duty, anti-dumping legislation, export, import, lighting equipment, originating product

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.9.2007 
COM(2007) 550 final 

Proposal for a 

COUNCIL REGULATION 

imposing anti-dumping duties on imports of integrated electronic compact fluorescent 
lamps (CFL-i) originating in the People's Republic of China following an expiry review 
pursuant to Article 11(2) of Council Regulation (EC) No 384/96 and extending to 
imports of the same product consigned from the Socialist Republic of Vietnam, the 
Islamic Republic of Pakistan and the Republic of the Philippines 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of 
22 December 1995 on protection against dumped imports from countries not members 
of  the  European  Community,  as  last  amended  by  Council  Regulation  (EC) 
No 2117/2005  of  21  December  2005  ('the  basic  Regulation')  in  the  proceeding 
concerning  imports  of  integrated  electronic  compact  fluorescent  lamps  (CFL-i) 
originating in the People's Republic of China. 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceeding  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The  basic  Regulation  does  not  foresee  a  general  impact  assessment  but  contains  an 
exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  19  July  2006,  the  Commission  announced  by  a  notice,  published  in  the  Official 

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Journal of the European Union1, the initiation of an anti-dumping proceeding pursuant 
to  Article  11(2)  of  the  basic  Regulation  concerning  imports  into  the  Community  of 
integrated  electronic  compact  fluorescent  lamps  (CFL-i)  originating  in  the  People's 
Republic of China.  

The  request  was  lodged  on  18  April  2006  by  the  Community  Federation  of  Lighting 
Industry of Compact Fluorescent Lamps Integrated (CFL-i) ('the Applicant') on behalf 
of a major proportion, in this case more than 25 %, of the total Community production 
of CFL-i.. 

The  enclosed  Commission  proposal  for  a  Council  Regulation  contains  the  definitive 
conclusions regarding dumping, injury and Community interest.  

Member States were consulted during the Anti-Dumping Committee of XX September 
2007.  XX  Member  States  were  in  favour  of  the  proposed  course  of  action  and  XX 
opposed.  

It  is  proposed  that  the  Council  adopt  the  attached  proposal  for  a  Regulation  which 
should be published in the Official Journal of the European Union on 18 October 2007 
at the latest. 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped  imports  from  countries  not  members  of  the  European  Community,  as  last 
amended by Council Regulation (EC) No 2117/2005 of 21 December 2005. 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s): 

The form of action is described in the above-mentioned basic Regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason(s). 

1 OJ C 167, 19.7.2006, , p. 3. 

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The above-mentioned basic Regulation does not foresee alternative options. 

4) 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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Proposal for a 

COUNCIL REGULATION 

imposing anti-dumping duties on imports of integrated electronic compact fluorescent 
lamps (CFL-i) originating in the People's Republic of China following an expiry review 
pursuant to Article 11(2) of Council Regulation (EC) No 384/96 and extending to 
imports of the same product consigned from the Socialist Republic of Vietnam, the 
Islamic Republic of Pakistan and the Republic of the Philippines 

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  Community(2)('the 
basic Regulation') and in particular Articles 4(1), 5(4), and 11(2) thereof, 

Having  regard  to  the  proposal  from  the  Commission,  after  consulting  the  Advisory 
Committee, 

Whereas: 

Measures in force 

A. PROCEDURE 

(1) 

(2) 

By Regulation (EC) No 1470/2001(3) (the 'original Regulation'), the Council imposed 
definitive  anti-dumping  duties  ranging  from  0  to  66,1  %  on  imports  of  integrated 
electronic  fluorescent  lamps  ('CFL-i')  originating  in  the  People's  Republic  of  China 
('the  country  concerned')  ('the  original  investigation').  Prior  to  that,  the  Commission 
had imposed provisional anti-dumping duties by Regulation (EC) No 255/2001(4) (the 
'provisional Regulation'). 

By Regulation (EC) No 866/2005(5) (the 'extending Regulation'), the Council extended 
the anti-dumping measures in force to also cover imports of CFL-i consigned from the 
Socialist Republic of Vietnam, the Islamic Republic of Pakistan and the Republic of 
the  Philippines.  The  extension  followed  an  anti-circumvention  investigation  carried 
out pursuant to Article 13(3) of the basic Regulation. 

2  OJ  L  56,  6.3.1996,  p.1.  Regulation  as  last  amended  by  Council  Regulation  (EC)  No  2117/2005  (OJ  L  340, 

23.12.2005, p.17). 
3 OJ L 195, 19.7.2001, p.8 
4 OJ L 38, 8.2.2001, p. 8 
5 OJ L 145, 9.6.2005, p.1 

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(3) 

By  Regulation  (EC)  No  1322/20066,  (the  'amending  Regulation'),  the  Council 
amended the anti-dumping measures in force. The amendment was made following an 
interim  review  carried  out  with  regard  to  the  product  scope.  The  result  of  the 
investigation and the effect of the amending Regulation was that direct current voltage 
lamps  ('DC-CFL-i')  should  be  excluded  from  the  scope  of  the  measures.  The  anti-
dumping  measures  would  henceforth  only  cover  alternating  current  voltage  lamps 
(including  electronic  compact  fluorescent  discharge  lamps  functioning  on  both 
alternating and direct current) ('AC-CFL-i').". 

Current investigations 

(4) 

(5) 

Following the publication of a notice of impending expiry, the Commission received a 
request for a review pursuant to Article 11(2) of the basic Regulation. The request was 
lodged  on  18  April  2006  by  the  Community  Federation  of  Lighting  Industry  of 
Compact Fluorescent Lamps Integrated (CFL-i) ('the applicant') on behalf of a major 
proportion, in this case more than 25 %, of the total Community production of CFL-i.  

The request was based on the grounds that the expiry of the measures would be likely 
to result in a continuation of dumping and injury to the Community industry. Having 
determined,  after  consultation  of  the  Advisory  Committee,  that  sufficient  evidence 
existed  for  the  initiation  of  a  review,  the  Commission,  on  19  July  2006,  initiated  an 
investigation7  pursuant  to  Article  11(2)  of  the  basic  Regulation.  The  applicant  also 
lodged  a  request  for  a  partial  interim  review  pursuant  to  Article  11(3)  of  the  basic 
Regulation.  Having  determined,  after  consultation  of  the  Advisory  Committee,  that 
sufficient  evidence  existed  for  the  initiation  of  a  review,  the  Commission,  on  8 
September  2006,  initiated  an  investigation8  pursuant  to  Article  11(3)  of  the  basic 
Regulation. The scope of the interim review is limited to the level of dumping as far as 
one  exporting  producer,  Lisheng  Electronic  &  Lighting  (Xiamen),  is  concerned.  The 
latter review is on-going and is not the subject of the present Regulation. 

Investigation and parties concerned 

(6) 

(7) 

(8) 

(9) 

The  Commission  officially  advised  the  applicant,  the  Community  producers,  the 
exporting  producers  in  the  PRC  (hereinafter  ‘Chinese  exporters’),  the  importers, 
traders,  users  and  their  associations  known  to  be  concerned,  as  well  as  the 
representatives  of  the  government  of  the  exporting  country,  of  the  initiation  of  the 
reviews.  

The  Commission  sent  questionnaires  to  all  these  parties  and  to  those  who  made 
themselves known within the time limit set in the notices of initiation.  

The Commission also gave the parties directly concerned the opportunity to make their 
views  known  in  writing  and  to  request  a  hearing  within  the  time  limit  set  out  in  the 
notice of initiation. 

In view of the apparent high number of exporting producers in the PRC and importers 
of  the  product  concerned,  sampling  was  envisaged  in  the  notice  of  initiation,  in 

6 OJ L 244, 7.9.2006, p.1 
7 OJ C 167, 19.7.2006, p.13 
8 OJ C 217, 8.9.2006, p.2 

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accordance  with  Article  17  of  the  basic  Regulation.  In  order  to  be  able  to  decide 
whether sampling would be necessary and, if so, to select a sample, the Commission 
sent  out  sampling  forms  asking  specific  information  on  average  sales  volume  and 
prices of each exporting producer and importer concerned. 

(10)  Complete replies were received from three Chinese exporters and three importers. 

(11)  A  questionnaire  was  also  sent  to  the  known  producers  in  the  potential  analogue 

country, namely the Republic of Korea ('Korea').  

(12)  Replies to the questionnaires were also received from four Community producers, two 
producers in the analogue country Korea, one retailer (which also imported) and seven 
suppliers of components to Community producers. 

(13)  The  Commission  sought  and  verified  all  information  deemed  necessary  for  the 
purpose of a determination of the likely continuation of dumping and injury and of the 
Community  interest.  Verification  visits  were  carried  out  at  the  premises  of  the 
following companies:  

(a) 

exporting producer in the PRC related to the applicant Community producer 

–  Osram China Lighting Ltd., Foshan City, Guangdong Province 

(b) 

exporting producer in the PRC related to the other Community producers 

–  Zhejiang Yankon Group Co Ltd., Shangyu City, Zhejiang Province 

(c) 

exporting producer in the PRC unrelated to any Community producers 

–  Shenzhen Zuoming Electronic Co. Ltd. Shenzhen City, Guangdong Province 

(d) 

trader related to the other Community producers 

–  Philips Hong Kong Ltd., Hong Kong SAR 

(e) 

trader unrelated to any Community producers 

–  Super Trend Lighting Ltd., Hong Kong SAR 

(f) 

producers in the analogue country 

–  Osram Korea Ltd., Seoul, Republic of Korea 

–  Hyosun Electric Co., Ltd., Paju-City, Republic of Korea 

(g) 

Community manufacturers 

–  Osram  GmbH,  München  and  Augsburg,  Germany  and  Osram  Slovakia,  Nove 

Zamky, Slovakia 

–  Philips Lighting B.V., Eindhoven, Netherlands and Pila, Poland 

–  General Electric Zrt., Budapest and Nagykaniza, Hungary, 

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–  Sylvania  Lighting  International,  Frankfurt/Main,  Germany  and  Leeds,  United 

Kingdom 

(h) 

Community importers  

–  Electro Cirkel B.V., Rotterdam, the Netherlands 

–  Kemner B.V., Amsterdam, the Netherlands 

–  Omicron UK Ltd., Huntingdon, United Kingdom 

(i) 

Community suppliers 

–  ST Microelectronics Srl, Milano, Italy 

–  Vitri Electro-Metalurgica S.A., Barcelona, Spain 

(j) 

Community retailer 

–  IKEA AB, Älmhult City, Region of Småland, Sweden 

Investigation Period 

(14)  The investigation of the likelihood of continuation and/or recurrence of dumping and 
injury  for  the  expiry  review  covered  the  period  from  1  July  2005  to  30  June  2006 
('review  investigation  period'  or  'RIP').  The  examination  of  trends  relevant  for  the 
assessment  of  the  likelihood  of  a  continuation  or  recurrence  of  injury  covered  the 
period from 1 January 2003 up to the end of the RIP ('period considered'). 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

Product concerned 

(15)  The  product  concerned  is  the  same  as  determined  in  the  amending  Regulation,  i.e. 
electronic  compact  fluorescent  discharge  lamps  functioning  on  alternating  current 
(including  electronic  compact  fluorescent  discharge  lamps  functioning  on  both 
alternating and direct current), with one or more glass tubes, with all lighting elements 
and  electronic  components  fixed  to  the  lamp  foot,  or  integrated  in  the  lamp  foot 
originating  in  the  People's  Republic  of  China  ('the  product  concerned'),  currently 
classifiable within CN code ex 8539 31 90. 

Like product  

(16)  The Commission found that  

–  CFL-i manufactured and sold domestically in the PRC,  

–  CFL-i manufactured in the PRC and exported to the Community,  

–  CFL-i manufactured and sold in the Community, and 

–  CFL-i manufactured and sold domestically in the analogue country 

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have  basically  the  same  physical  and  technical  characteristics  and  uses.  Therefore,  these 
products are alike within the meaning of Article 1(4) of the basic Regulation. 

(17)  Several parties alleged that the types of CFL-i imported from the PRC and the CFL-i 
manufactured  in  the  Community  were  not  like  products  since  the  quality  of  the 
product  concerned  (life-time)  was  different  and  since  the  product  concerned  had  a 
different  category  of  end-users  (consumer  CFL-i  lamps)  than  the  CFL-i  lamps 
manufactured in the Community (CFL-i lamps for professional uses). 

(18) 

(19) 

In  respect  of  the  alleged  different  quality  between  CFL-i  lamps  imported  from  the 
PRC  and  CFL-i  lamps-  manufactured  in  the  Community,  the  same  claim  was  put 
forward in the original investigation and rejected in the original Regulation. Since the 
claim contained no new elements showing that the description of the like product, as 
defined in recital 13 of the provisional Regulation, was incorrect, the definition of the 
original  Regulation,  as  amended  by  Regulation  (EC)  No  1322/2006,  has  been 
maintained in this investigation. 

In  respect  of  an  alleged  different  end-use  between  imported  CFL-i  lamps  and  CFL-i 
lamps  manufactured  in  the  Community,  this  situation  does  not  alter  the  fact  that  the 
CFL-i  lamps  imported  and  CFL-i  lamps  manufactured  in  the  Community  are 
completely  interchangeable  from  a  technical  point  of  view  and  are  in  direct 
competition with each other. Moreover, whereas the users may differ and be supplied 
by different sales channels, this does not impinge upon the fact that such CFL-i lamps 
are  technically  alike  and  are  used  for  the  same  purposes,  i.e.  to  generate  light  in  an 
energy-saving manner. 

C. 

LIKELIHOOD OF CONTINUATION AND/OR RECURRENCE OF DUMPING 

(20) 

(21) 

(22) 

1. Dumping of imports during the investigation period  

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  it  was  examined  whether 
dumping  was  currently  taking  place  and  whether  or  not  the  expiry  of  the  measures 
would be likely to lead to a continuation or recurrence of dumping. 

In accordance with Article 11(9) of the basic Regulation, the same methodology was 
used  as  in  the  original  investigation.  As  an  expiry  review  does  not  provide  for  any 
examination  of  changed  circumstances,  it  was  not  reconsidered  whether  producers 
merited or not to be granted market economy treatment ('MET'). 

Sampling/Co-operation 

It  is  recalled  that  in  the  original  investigation  a  total  of  nine  Chinese  exporting 
producers fully co-operated with the investigation. Two of these exporting producers 
were  granted  MET,  namely  Lisheng  Electronic  &  Lighting  (Xiamen)  Co.,  Ltd  and 
Philips  &  Yaming  Lighting  Co.,  Ltd  (recital  15  of  the  provisional  Regulation  and 
recital  14  of  the  original  Regulation).  Six  of  the  total  nine  were  granted  individual 
treatment ('IT') (recital 35 of the provisional Regulation and recital 17 of the original 
Regulation). It is noted that none of the companies awarded with MET and only three 
of those awarded with IT co-operated with the present expiry review investigation. 

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(23) 

(24) 

In  view  of  the  apparent  large  number  of  Chinese  exporting  producers  listed  in  the 
complaint sampling was envisaged in the notice of initiation for the determination of 
dumping, in accordance with Article 17 of the basic Regulation. In order to enable the 
Commission  to  decide  whether  sampling  would  be  necessary  and,  if  so,  to  select  a 
sample, all exporting producers from the PRC were asked to make themselves known 
to  the  Commission  and  to  provide,  as  specified  in  the  notice  of  initiation,  basic 
information on their activities related to the product concerned during the investigation 
period. 

17 Chinese exporting producers replied to the sampling forms. The investigation was 
based on information from two co-operating exporting producers which had originally 
received  individual  treatment,  and  also  on  information  from  a  third  one  that, 
originally, was granted neither this treatment nor market economy treatment. This was 
done  in  agreement  with  the  Chinese  authorities.  These  three  exporting  producers 
represented more than 30% of the total exported quantities to the Community from the 
PRC, and more than 40% of the quantities excluding the Chinese exporter subject to 
0% duty. The two companies which received individual treatment account for a vast 
majority  of  these  quantities,  underlining  that  co-operation  from  companies  receiving 
neither individual treatment nor market economy status was low. 

(25)  Verification visits were carried out at the premises of the three co-operating exporting 

producers: 

–  Zhejiang Yankon Group Co Ltd 

–  Shenzhen Zuoming Electronic Co. Ltd 

–  Osram China Lighting Ltd. 

Normal value 

Domestic Sales Prices based on the Analogue Country 

(26)  Since normal value had to be established on the basis of analogue country data for all 
producers  that  did  not  meet  MET  criteria,  the  same  methodology  as  in  the  original 
investigation was used. Therefore, the normal value for all Chinese exporters had to be 
determined  on  the  basis  of  data  obtained  from  producers  in  a  market  economy  third 
country, in accordance with Article 2(7) of the basic Regulation.  

(27) 

In  the  notice  of  initiation,  Mexico  was  envisaged  as  an  appropriate  market  economy 
third  country  in  respect  to  the  Community  exports  of  the  PRC.  Mexico  was  already 
used an analogue country in the original investigation. 

(28)  However,  no  co-operation  could  be  obtained  from  Mexico.  It  was  found  that 
production  of  the  product  concerned  had  been  shut  down  in  Mexico  before  the 
beginning of the RIP. 

(29)  Therefore,  producers  in  other  market  economy  third  countries,  including  Indonesia, 
Malaysia, India and the Republic of Korea ('Korea'), were contacted with a view to co-
operating with the review investigation. 

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(30)  The highest level of co-operation was obtained from Korea where two producers filed 
to  subsequently  undergo  on-spot 
questionnaire  responses  and  were  willing 
verifications.  One  producer  from  Malaysia  also  replied  to  the  Commission  services' 
request  but  the  data  supplied  were  largely  deficient.  Another  producer  from  India 
replied but its domestic sales were not representative. Moreover, it was found that the 
existence  of  several  duties,  such  as  countervailing  duty,  special  countervailing  duty, 
and  Custom  educational  duty,  had  a  negative  impact  on  the  openness  of  the  Indian 
market. Therefore and given that no major competition or trade obstacles were found 
to exist on the Korean market it was considered that Korea was the most appropriate 
analogue country choice. 

(31)  Subsequently, various producers and producers’ associations in Korea were contacted 
and invited to cooperate through the completion of a questionnaire. Two producers in 
the  Republic  of  Korea  provided  a  questionnaire  reply  and  fully  cooperated  in  the 
investigation. Consequently, calculations were based on the verified information from 
these two cooperating producers. 

Export Price 

(32)  For the two co-operating exporting producers which had received individual treatment, 
export  prices  were  to  be  established  on  the  basis  of  the  prices  actually  paid  by 
unrelated  customers  in  the  Community  in  accordance  with  Article  2(8)  of  the  basic 
Regulation.  

(33)  To ensure a fair comparison between normal value and export price, allowances were 
made for differences in physical characteristics, transport, insurance, handling, loading 
and ancillary costs where applicable and justified. 

Dumping Margin 

(34)  Dumping margins were established for the two co-operating exporting producers who 
had  received  individual  treatment.  To  calculate  the  dumping  margin,  the  weighted 
average  normal  values  were  compared  to  the  weighted  average  export  price  to  the 
Community of the product concerned. 

(35)  This comparison showed the existence of dumping of above 50% for both companies. 

(36)  As  to  dumping  margins  for  companies  not  receiving  market  economy  treatment  or 
individual  treatment,  cooperation  from  such  companies  was  low.  Against  this 
background, dumping margins were established at least at the level mentioned in the 
preceding paragraph. This was done on the basis of normal value as described above, 
compared  with  export  prices  emanating  from  cooperating  exporters  and  Community 
operators,  and  from  official  statistics,  as  cross-checked  with  confidential  statistical 
information  available  to  the  Commission.  Comparison  was  also  undertaken  as 
explained above. 

(37)  Also due to non-cooperation in the review investigation by companies which obtained 
market  economy  treatment  in  the  original  investigation,  there  are  no  indications  that 
dumping margins would differ from those originally established. 

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(38)  Therefore,  in  particular  on  the  basis  of  the  evidence  available  from  the  three  co-
operating  exporting  producers,  the  investigation  shows  strong  evidence  of  continued 
dumping. 

2. Developments of imports should measures be repealed 

Preliminary remarks 

(39)  The three exporting producers have available production capacities and stocks in order 
to continue to sell large volumes of sales on the Community market. In addition, it is 
emphasised  that  the  Community  market  is  very  attractive  given  its  size  and  the  ever 
increasing  demand  for  the  product  concerned.  Accordingly,  many  Chinese  exporting 
producers  have  established  a  well  developed  distribution  network  which  facilitates 
sales  of  the  product  concerned.  This  is  also  mirrored  by  the  fact  that  the  existing 
measures were circumvented which led to the extension of these measures to Vietnam, 
Pakistan  and  the  Philippines  by  Council  Regulation  (EC)  No.  866/2005  of  6  June 
2005.9 Also, the level of co-operation by Chinese exporting producers was rather poor 
(see  above).  In  addition,  the  extent  of  dumping  identified  in  the  RIP  points  to  a 
likelihood of continuation of dumping should measures lapse. 

Relationship between prices in the Community and the exporting country 

(40)  Prices  in  the  Community  were  generally  higher  than  those  achieved  by  the  three 
cooperating  Chinese  exporting  producers  for  comparable  models  on  their  domestic 
market. This would suggest that it would be an attractive alternative for the  Chinese 
exporting producers to shift sales to the Community should the anti-dumping measures 
be repealed. 

Relationship  between  export  prices  to  third  countries  and  prices  in  the 
exporting country 

(41)  During  the  RIP,  export  prices  to  third  countries  were  generally  higher  than  those 
achieved by the three cooperating Chinese exporting producers for comparable models 
on their domestic market. However, they were lower than the normal value determined 
in the analogue country. There is no reason to assume that this latter pattern would be 
different for exports to the Community if measures were lifted. Therefore, these facts 
support  the  conclusion  that  there  is  continuation  and  at  least  a  risk  of  recurrence  of 
dumping regarding most Chinese exportss 

Relationship between export prices to third countries and 
level in the Community 

the 

price 

(42)  Chinese export prices to third countries were about the same level as the price level in 
the  Community.  However,  if  measures  are  repealed  it  is  likely  that  the  Community 
market will even become more attractive for Chinese exporting producers. 

Unused capacities and stocks 

9 OJ L 145, 9.6.2005, p. 1 

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(43)  All  three  co-operating  exporting  producers  were  close  to  producing  and  selling  their 
full  capacities  during  the  RIP.  New  assembly-lines  can  be  established  relatively 
quickly if new market evolutions so require. That is why Chinese producers are likely 
to  expand  their  capacities  quickly  once  measures  are  repealed.  In  turn,  dumping  is 
likely to continue on that basis. 

Circumvention practices 

(44)  As  established  by  Council  Regulation  (EC)  No.  866/2005  of  6  June  200510,  the 
existing measures were circumvented by consignments through Vietnam, Pakistan and 
the Philippines. Subsequently, measures were extended to consignments of the product 
concerned.  Again,  the  circumvention  practices  found  stress  the  attractiveness  of  the 
Community  market  for  Chinese  exporting  producers.  This  attractiveness  will  in  all 
likelihood  make  Chinese  producers  export  increased  volumes  once  measures  are 
repealed.  Since  exports  were  already  made  at  dumped  prices  during  the  RIP  (with 
measures  in  place),  dumping  is  likely  to  continue  once  measures  lapse  and  export 
volumes subsequently increase. 

Conclusion 

(45)  Dumping at significant levels (beyond 50%) was found to occur during the RIP. The 
Community  market  has  been  and  will  be  attractive  given  its  size  and  its  increasing 
demand  for  the  product  concerned.  In  addition,  the  price  level  on  the  Community 
market  with  prices  substantially  beyond  the  levels  in  the  PRC  adds  to  such 
attractiveness.  Once  measures  are  repealed,  Chinese  producers  are  likely  to  expand 
their capacities to take advantage of such a changed market situation. All these factors 
taken  together  make  the  continuation  of  dumping  very  likely  once  measures  are 
repealed. 

3. Conclusion on the likelihood of a continuation and/or recurrence of dumping 

(46)  On  the  basis  of  the  above,  it  is  concluded  that  dumping  is  likely  to  continue  should 

measures be repealed.  

D. 

LIKELIHOOD OF CONTINUATION OR RECURRENCE OF INJURY 

1. Analysis pursuant to Articles 4(1) and 5(4) of the basic Regulation 

(47)  CFL-i is manufactured in the Community by four producers: 

– 

– 

– 

– 

General Electric Zrt., Hungary, with a production site in Hungary, 

OSRAM GmbH, Germany, with production sites in Germany and Slovakia  

Philips Lighting B.V., the Netherlands, with a production site in Poland, 

Sylvania Lighting International, Germany, with a production site in the United 
Kingdom. 

10 OJ L 145, 9.6.2005, p. 1 

EN 

13 

   EN 

 
 
 
 
 
                                                 
(48)  All  four  cooperating  manufacturers  belong  to  multinational  groups  and  are  active  in 
the development and manufacturing of a large range of products. They all have their 
own sales and distribution systems in the Community as well as in other parts of the 
world. 

(49)  During the investigation, the aforesaid manufacturers have been examined in the light 
of  Articles  4(1)  and  5(4)  of  the  basic  Regulation..  The  detailed  results  (see  annex) 
showed a complex picture of a sector whose structure appears to be in flux and where 
views  are  mixed,  with  the  largest  producer  in  terms  of  production  volumes  being  in 
favour and the rest being opposed to the continuation of measures. 

(50) 

It  is  noted  that  the  aforementioned  largest  Community  producer,  referred  to  as 
company  B  in  the  Annex,  produces  around  48%  of  Community  production  and  its 
output  therefore  certainly  constitutes  a  major  proportion  of  Community  production. 
Moreover,  Art.  9(1)  of  the  basic  Regulation  stipulates  that  the  Community  may  take 
measures even if a complaint is withdrawn if that is in the Community interest. This 
rule mutatis mutandis also applies in an expiry review in which there is no complete 
withdrawal of a complaint, but a major Community producer continues to be in favour 
of  the  measures.  Provided  that  producer  accounts  for  a  major  proportion  of 
Community  industry,  which  is  the  case  here,  its  injury  data  constitutes  the  best 
available data. 

(51)  Therefore, for the purpose of the analysis of continuation and/or recurrence of injury, 
the situation of the supporting company has been analysed.. The analysis of the impact 
the  measures  have  had  on  the  other  Community  manufacturers  is  described  below 
under "Community interest". 

2. 

Situation on the community market 

Community consumption 

(52)  Community  consumption  was  established  on  the  basis  of  the  sales  volumes  of  the 
Community manufacturers and of Eurostat figures concerning the volume of imports 
from the country concerned and other third countries, duly adjusted where appropriate. 

(53)  CN  code  8539  31  90  may  include  imports  from  products  other  than  the  product 
concerned. As a consequence, an estimate of the percentage of imports of the product 
concerned  within  this  code  was  made  on  the  basis  of  questionnaire  replies  by 
interested  parties,  information  provided  by  the  complainant  and  cross-checked  with 
confidential  statistical  information  available  to  the  Commission.  Whereas  in  some 
instances it could be argued that full CN code data could well reflect import volumes 
and  values  of  the  product  concerned,  the  assessment  was  made  conservatively,  thus 
minimising  these  amounts.  In  any  event,  the  conclusions  are  the  same  whether  this 
conservative approach or full CN code data are used. Some figures below have been 
indexed  or  bracketed  to  protect  confidential  company  information  and/or  statistics 
(such as those emanating from 10 digit or 14 digit codes). 

(54)  The 

Community 

consumption 

developed 

as 

follows: 

2003 

2004 

2005 

RIP 

EN 

14 

   EN 

 
 
 
Community 
(million of units) 

consumption 

Index (2003 = 100) 

112 

100 

144 

129 

198 

176 

214 

190 

(55)  During the period considered consumption of the product concerned increased by 90 
%.  This  increase  of  consumption  is  supplied  partly  by  an  increase  in  imports  of  the 
product  concerned  destined  to  consumers.  Smaller-sized  CFL-i  which  resembles 
classical  incandescent  lamps  has  started  to  penetrate  the  market  and,  due  to  their 
apparent  attraction  to  consumers  (allegedly  due  to  their  design  and  low  price),  have 
triggered a significant increase in demand. 

Development of imports  

Volumes, market share and prices of imports from the PRC 

(56)  The  volumes  and  market  shares  of  imports  of  the  product  concerned  from  the  PRC 
developed as in Table 2 below. In line with the findings of the extending Regulation, 
imports recorded under CN code 8539 31 90 consigned from the Socialist Republic of 
Vietnam, the Islamic Republic of Pakistan and the Republic of the Philippines, in the 
period  spanning  from  2003  to  the  extension  of  the  measures  have  been  included  as 
dumped imports below. It is underlined that this inclusion has no impact on the nature 
of the trends described. Since the interim review with respect to Lisheng Electronics 
(see  above)  is  not  yet  finalised,  it  is  presumed  that  the  outcome  in  the  original 
investigation (no dumping found) is also valid in this expiry review. 

Table 2 

2003 

2004 

2005 

RIP 

Volume 
dumped 
of 
imports  (only  index  is 
provided 
to 
confidentiality) 

due 

Volume  of  non-dumped 
imports  (only  index  is 
to 
provided 
confidentiality) 

due 

Total  imports  (thousands 
of units) 

100 

148 

262 

335 

100 

147 

194 

205 

55.046 

81.361 

127.860 

153.451 

Market  share  of  dumped 
imports 

between 20 
% and 30 % 

between 27 
% and 37 % 

between 37 
% and 47 % 

between 47 
% and 57 % 

Market  share  of  non 
dumped imports 

between 17 
% and 27 % 

between 17 
% and 27 % 

between 17 
% and 27 % 

between 17 
% and 27 % 

Average 
dumped imports 

prices 

of 

Between € 
1,2 and € 
1,3 

Between € 
1,0 and € 
1,1 

Between € 
0,9 and € 1,0 

Between € 
0,9 and € 

1,0  

(57)  Between 2003 and the end of the RIP, dumped imports from the PRC increased by 235 
%.  The  share  of  dumped  imports  in  Community  consumption,  in  the  meanwhile, 
increased from between 20% and 30% to between 47% and 57%. 

EN 

15 

   EN 

 
(58)  Meanwhile  non-dumped  imports  also  increased  its  share  of  the  Community  market, 
albeit not to the extent that dumped imports did. During the RIP, non-dumped imports 
had a market share of the Community market in the range of 17% and 27%, much less 
than the market share of the dumped imports. 

(59)  All  in  all,  imports  from  the  PRC,  dumped  and  non-dumped,  during  the  RIP  held  a 

market share of the Community market of around 72 %. 

(60)  The approach to calculate the price undercutting is identical to the approach described 
in  recital  60  in  the  provisional  Regulation.  The  type  of  CFL-i  exported  to  the 
Community  by  the  exporting  producers  in  the  PRC  (for  which  dumping  was 
established)  has  been  compared  with  the  corresponding  type  of  CFL-i  manufactured 
by the supporter, and expressed as a percentage of supporter's ex-works price. On this 
basis, a level of undercutting ranging from 48,2 % to 61,5 % has been found. 

Volumes, market shares and prices of imports from other countries  

(61) 

(62) 

In order to present a complete picture of the situation on the Community market, the 
trends  of  imports  of  the  product  concerned  from  other  countries  concerned  by  this 
review were also examined. 

Import  volumes,  market  shares  and  average  prices  of  imports  from  third  countries 
have developed as indicated in table 3 below (two main exporting countries have been 
extracted). 

Table 3 

2003 

2004 

2005 

RIP 

Volume  of  imports  from 
Malaysia  

between 1 
and 2 million 
units 

between 0 
and 1 
million 
units 

between 1 
and 2 million 
units 

between 2 
and 3 
million 
units 

Market share 

between 1 % 
and 2 % 

between 0 
% and 1 % 

between 0 % 
and 1 % 

between 0 
% and 1 % 

Average 
imports 

prices 

of 

Between € 
1,2 and € 1,3 

Volume  of  imports  from 
Taiwan  

between 0 
and 1 million 
units 

Between € 
1,1 and € 
1,2 

between 1 
and 2 
million 
units 

Between € 
1,2 and € 1,3 

Between € 
1,2 and € 

between 3 
and 4 million 
units 

1,3  

between 3 
and 4 
million 
units 

Market share 

between 0 % 
and 1 % 

between 0 
% and 1 % 

between 1 % 
and 3 % 

between 1 
% and 3 % 

Average 
imports 

prices 

of 

Between € 0 
and € 1,0 

Between € 
0 and € 1,0 

Between € 0 
and € 1,0 

Between € 
0 and € 1,0 

Volume  of  imports  from 
the rest of the world ) 

between 3 
and 4 million 
units 

between 4 
and 5 
million 
units 

between 7 
and 10 
million units 

between 7 
and 10 
million 
units 

EN 

16 

   EN 

 
 
 
Market share 

between 3 % 
and 4 % 

between 2 
% and 3 % 

between 4 % 
and 5 % 

between 4 
% and 5 % 

Average 
imports 

prices 

of 

Between € 
1,0and € 1,1 

Between € 
1,0and € 
1,1 

Between € 
1,0and € 1,1 

Between € 
1,0and € 

1,1  

(63)  Between  2003  and  the  end  of  the  RIP  small  increases  have  been  noted  for  imports 
originating in Malaysia and Taiwan. In total, imports from third countries have been 
able to gain market shares despite imports originating in the PRC having successfully 
penetrated the Community market. However, as compared to imports from the PRC, 
imports from third countries only play a minor role.  

(64)  Due to the small quantities imported, the price findings extracted from import statistics 
have,  for  some  countries,  been  considered  to  be  unrepresentative  as  they  clearly 
substantially deviate from imports prices found for imports from the PRC. However, 
there is no reason to believe that exporting producers in third countries could deviate 
more  than  marginally  from  the  prices  charged  by  exporting  producers  in  the  PRC. 
Even if these prices were considered to be representative, given the limited magnitude 
of  the  volumes  at  hand,  and  the  nature  of  Chinese  export  price  and  volumes,  there 
would be no impact on the findings detailed below. 

3. 

Economic situation of the supporter 

Preliminary remarks 

(65)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  all  relevant  economic  indicators 
having  a  bearing  on  the  state  of  the  single  supporter  of  the  investigation  have  been 
examined. 

(66) 

In  view  of  the  fact  that  figures  pertain  to  only  one  company,  for  reasons  of 
confidentiality all figures have been indexed.  

Production, installed production capacity and capacity utilisation rate 

Table 6 

2003 

2004 

2005 

RIP 

Production 

Installed Production 
capacity  

Capacity utilisation rate 

100 

100 

100 

107 

100 

107 

90 

100 

90 

83 

100 

83 

(67)  Following  an  increase  in  production  between  2003  and  2004,  the  production  of  the 
supporter has fallen by 22 % from 2004 to the end of the RIP. As the level of installed 
production capacity remained unchanged, the capacity utilisation rate has decreased in 
correspondence with the production rate, i.e. by 22 % since 2004. 

(68)  The  reason  for  the  lower  level  of  production  (and  the  lower  rates  of  the  capacity 
utilisation)  is  lower  sales  volumes  on  the  Community  market  of  the  type  of  CFL-i 
lamps that the supporter is manufacturing.  

EN 

17 

   EN 

 
Stocks 

Table 7 

Stocks 

Stocks  as  %  of  overall 
sales  volumes  on 
the 
Community market 

2003 

2004 

2005 

RIP 

100 

100 

49 

49 

0 

0 

116 

168 

(69)  As the demand for CFL-i lamps by this manufacturer decreased (see preceding recital), 
the  level  of  stocks  of  Community  manufactured  CFL-i  lamps  have  increased  during 
the period considered. The increase in stocks during the RIP should partly be seen in 
the light of the fact that CFL-i lamps are a seasonal product (with higher sales volumes 
preceding and during the darker period of the year). Thus, increase of stocks between 
2005 and the RIP is partly due to seasonal effects. However, it is to some extent also 
due to lower sales volumes of Community manufactured CFL-i lamps during the RIP. 

(70)  Sales  volumes  of  Community  produced  CFL-i  lamps,  market  share  of  Community 

consumption and growth 

Table 8 

2003 

2004 

2005 

RIP 

Sales Volumes 

Market 
of 
Community consumption 

share 

Growth of Sales turnover  

100 

100 

100 

102 

80 

101 

103 

59 

93 

83 

44 

74 

(71)  Sales  volumes  of  Community  produced  CFL-i  lamps  by  the  supporter  for  the 
Community market remained relatively stable in absolute terms during the first years 
of the period considered. During the RIP, however, a decrease in sales volumes of 20 
% was noted.  

(72) 

In  relation  to  Community  consumption,  the  market  share  of  the  Community-
manufactured CFL-i lamps by the supporter has decreased.  

Sales prices 

Table 9 

2003 

2004 

2005 

RIP 

Average Sales price 

100 

98 

90 

88 

(73)  The  average  sales  price  of  Community-manufactured  CFL-i  lamps  has  decreased 
during the period considered. The average sales price per unit has decreased by 12 % 
during the period considered.  

Employment, wages and productivity per employee 

Table 10 

2003 

2004 

2005 

RIP 

EN 

18 

   EN 

 
Employees 

Wages 

Productivity  
(CFL-i lamps 
manufactured /employee 
in production)  

100 

100 

97 

97 

90 

90 

82 

85 

100 

109 

101 

106 

(74)  The  number  of  employees  has  decreased  during  the  whole  period  considered,  as  a 

direct result of lower production within the Community border.  

(75)  The  cost  for  wages  has  decreased  in  line  with  the  decrease  of  the  number  of 

employees.  

(76)  The  productivity  by  the  employees  in  production  has  increased  by  11  %  during  the 
period considered, i.e. the number of employees in production has fallen more than the 
number of CFL-i lamps produced.  

Magnitude  of  the  actual  margin  of  dumping  and  recovery  from  the  effects  of 

past dumping 

(77)  As  concerns  the  impact  on  the  supporter  of  the  magnitude  of  the  actual  margin  of 
dumping,  given  the  volume  and  the  prices  of  the  imports  from  the  countries 
concerned, this impact cannot be considered to be negligible.  

(78) 

In  the  light  of  the  foregoing,  it  can  not  be  concluded  that  the  supporter  has  fully 
recovered from the effects of past dumping. 

Profitability, return on investment and cash flow  

Table 12 

2003 

2004 

2005 

RIP 

Pre-tax  profit  on  sales  in 
the  Community  (%  of 
Community sales) 

Return on total assets 

Cash  Flow  (%  on  total 
sales) 

100 

126 

38 

- 36 

100 

100 

110 

94 

36 

57 

- 17 

1 

(79)  All  the  performance  indicators  above  demonstrate  the  trend  towards  declined 
profitability.  From  a  situation  of  reasonable  financial  performance  (following  the 
imposition  of  anti-dumping  measures  in  2001),  the  supporter  enjoyed  a  period  of 
healthy  financial  performance  during  the  first  years  of  the  period  considered. 
However,  as  a  consequence  of  competition  from  imported  CFL-I  originating  in  the 
PRC, sales volumes and average sales prices have decreased and have had a negative 
effect  of  the  financial  performance  of  the  supporter.  Despite  having  anti-dumping 
measures in force, the supporter made losses during the RIP.  

Investments and ability to raise capital  

EN 

19 

   EN 

 
Table 13 

2003 

2004 

2005 

RIP 

Investments 

100 

55 

95 

71 

(80)  The  level  of  investments  has,  overall,  decreased  during  the  period  considered.  It 
should  also  be  mentioned  that  the  level  of  investments  in  the  product  concerned  has 
generally been low, as demonstrated by the fact that installed production capacity has 
not changed during the period considered.  

(81)  The supporter has not reported any specific problems in relation to its ability to raise 

capital. 

Conclusion on the economic situation of the supporter 

(82)  The period considered has been characterized by an increase of imports from the PRC 
which  partly  has  been  on  the  expense  of  the  supporter's  financial  performance  as 
concerns  Community-produced  CFL-i  lamps.  Sales  volumes  and  sales  values  have 
both  decreased  and  the  profitability  has  decreased  to  a  level  where  it  made  losses 
during the RIP.  

(83) 

It is thus clear that, should  anti-dumping  measures be allowed  to lapse,  the  financial 
performance as regards Community manufactured CFL-i lamps of the supporter would 
deteriorate.  

4. 

Import activities of the supporter 

Table 14 

2003 

2004 

2005 

RIP 

Re-sales 
of 
CFL-i lamps 

imported 

100 

323 

346 

941 

Proportion  of  total  sales 
revenues 
that  originate 
from re-sales of imported 
CFL-i lamps 

100 

104 

104 

188 

(84) 

It  was  stated  by  the  supporting  manufacturer  that  in  order  to  defend  itself  from 
competition from imports and to guard its market share of the Community market, the 
supporter has started to import CFL-i lamps from the country concerned.  

(85)  The  volumes  of  imports  represent  only  a  relatively  small  portion  of  the  total  sales 

volumes on the Community market.. 

5. 

Export activities of the supporter 

Table 14 

2003 

2004 

2005 

RIP 

sales 

Export 
Community 
manufactured 
lamps 

of 

CFL-i 

100 

68 

46 

60 

EN 

20 

   EN 

 
Average 
exported 
produced CFL-i lamps 

price 
of 
Community-

100 

96 

102 

87 

(86)  The  export  performance  by  the  supporter  has  deteriorated  during  the  period 
considered.. Part of the explanation for this is that, for some of the export markets, the 
supporter  has  changed  the  location  from  where  it  supplies  the  CFL-i  lamps,  from 
Community manufacturing to a location closer to the export market. 

(87)  The  average  price  per  unit  for  export  sales  has  been  fairly  stable  during  the  period 
considered, with a tendency towards lower prices towards the end of the RIP. 

6.  Conclusion on the likelihood of continuation or recurrence of injury 

(88)  The investigation showed that the capacity of Chinese exporters is significant and can 
be  easily  increased.  In  addition,  price  levels  in  the  Community  remain  attractive  in 
comparison to other markets, –and there are well established distribution channels in 
the  Community  for  Chinese  exports.  Chinese  exports  would  therefore  be  likely  to 
increase. 

(89)  The significant levels of dumping and undercutting observed, as well as the low level 
of prices practiced in Chinese exports to other third countries, indicate that the export 
volumes to the Community mentioned above would be made at dumped prices which 
would lie below the prices and costs of the supporter.  

(90)  The  combined  effect  of  such  volumes  and  prices  would  be  likely  to  lead  to  a 
deterioration  of  the  supporter's  situation.  Whether  the  supporter's  response  thereto 
would be a drop in sales (and hence in production), a reduction in prices, or both, the 
financial deterioration would be substantial. 

(91)  The investigation has not identified any other factors that would put into question the 
likely  effect  of  dumped  imports  on  the  situation  of  the  supporter.  In  particular,  it  is 
likely  that dumped  imports from China would gain ground over products from other 
sources,  including  from  other  Community  manufacturers  and  from  the  Chinese 
producer subject to a 0% duty if measures lapse. Even if this were not to take place, 
the size and price levels of the dumped Chinese imports would be of such a magnitude 
that  imports  from  non-dumped  sources  would,  in  all  likelihood,  not  break  the  causal 
link.  Moreover,  no  other  factors  to  which  injury  must  be  attributed  have  been 
identified. In particular, there is no evidence that any factors enumerated in Art. 3(7) 
of  the  Basic  Regulation  apply,  and  certainly  not  that  is  so  important  as  to  break  the 
causal link between dumping and injury.  

(92)  Furthermore  it  cannot  be  considered  that  the  imports  carried  out  by  the  supporting 
manufacturer would have any substantial impact as to the likelihood of continuation of 
injury.  In  this  respect  it  has  been  established  that  these  imports  have  been  the 
consequence of the need for the supporter to complete the product range.  

(93)  On this basis, it is concluded that there is a likelihood of continuation and recurrence 
of injurious dumping should anti-dumping measures on imports of CFL-i originating 
in the People's Republic of China be allowed to lapse. 

EN 

21 

   EN 

 
E. 

COMMUNITY INTEREST 

1. 

Preliminary remarks 

(94)  Firstly,  it  is  recalled  (see  recital  (50)  above),  that  since  Art.  9(1)  of  the  basic 
Regulation  stipulates  that  the  Community  may  take  measures  even  if  a  complaint  is 
withdrawn if taking measures in the Community interest. A fortiori, this possibility is 
open to the Community in an expiry review in which the major Community producer 
continues  to  be  in  favour  of  the  measures,  even  if  other  manufacturers  oppose  their 
continuation.  Therefore,  and  also  in  accordance  with  Article  21  of  the  basic 
Regulation,  it  was  examined  whether  the  maintenance  of  the  existing  anti-dumping 
measures  would  be  in  the  interest  of  the  Community  as  a  whole  and  if  so,  for  what 
period. The determination of the Community interest was based on an appreciation of 
all  the  various  interests  involved.  The  present  investigation  analyses  a  situation  in 
which  anti-dumping  measures  have  already  been  in  place  since  2001  and  therefore 
allows for the assessment of any undue negative impact on the parties concerned due 
to the current anti-dumping measures. 

(95)  On this basis, it was examined whether, despite the conclusions on the likelihood of a 
continuation  or  recurrence  of  injurious  dumping,  compelling  reasons  existed  which 
would  lead  to  the  conclusion  that  it  is  not  in  the  Community  interest  to  maintain 
measures in this particular case. 

2. 

Interest of manufacturer in the Community supporting the complaint. 

(96)  As  outlined  in  section  D  above,  there  is  a  likelihood  of  continuation  as  well  as 

recurrence of dumping if measures were to be repealed.  

(97)  There  is  likelihood,  should  the  measures  be  repealed,  that  the  loss-making  situation 
will  continue.  The  manufacturing  plants  currently  employ  several  hundred  staff. 
Therefore  it  would  be  in  the  interest  of  the  Community  manufacturer  supporting  the 
complaint  that  anti-dumping  measures  against  dumped  imports  from  the  country 
concerned be re-imposed. 

3 

Interest of other manufacturers in the Community  

(98) 

In  general,  it  should  be  underlined  that,  given  the  import  activity  of  Community 
manufacturers,  the  existence  of  duties  has  had  a  negative  impact  on  their  overall 
activity.  Aside  from  the  expenses  emanating  from  anti-dumping  duties  linked  to 
importation,  measures  have  prevented  them  from  optimising  their  production  mix, 
sales portfolio, and, as a corollary their profitability. Investment, production, R&D and 
other strategic decisions have also been affected as a result. These negative effects are 
an important aspect to take into consideration in this analysis. 

(99) 

It is recalled that Company A had announced, apart from  its European  production, a 
strategy  to  source  from  the  PRC.  It  is  therefore  concluded  that  re-imposition  of 
measures would not be in the interest of this manufacturer. 

(100)  Two other Community manufacturers, (identified as 'Company C' and 'Company D' in 
the  annex)  both  opposed  re-imposition  of  measures.  While  these  companies  both 
source  CFL-(i)-s  from  the  PRC  they  both  still  have  substantial  production  in  the 

EN 

22 

   EN 

 
Community.  For  this  reason,  it  cannot  be  ruled  out  that  the  anti-dumping  measures 
would be contrary to these two producers' interests, especially not in the medium term. 

4. 

Interest of suppliers 

(101)  Several  suppliers,  accounting  for  a  significant  amount  of  total  supplies  to  the 
Community  industry,  co-operated  with  the  Commission  in  the  investigation.  All  but 
one  supplier  expressed  support  of  continuation  of  measures  and  expressed  concerns 
about losing business should the existence of CFL-i-manufacturing in the Community 
be  at  stake.  These  suppliers  jointly  had  several  hundreds  of  employees  located  in 
Germany, Spain, Italy, Slovakia and Hungary.  

(102)  It  can  therefore  be  concluded  that  it  would  be  in  the  interest  of  the  suppliers  to  re-
impose anti-dumping measures against dumped imports from the country concerned.  

5. 

Interest of importers/traders and retailers 

(103)  The Commission sent questionnaires to 8 importers/traders of the product concerned. 
Responses were received from 3 importers representing only just over 1% of the total 
import  volume  of  the  product  concerned  originating  in  the  country  concerned  to  the 
Community.  The  product  concerned  is  important  for  all  three  companies  and  the 
turnover  of  the  product  concerned  corresponds  to  between  10-70%  of  the  total 
turnover  of  each  company.  This  turnover  was  due  to  increase  given  the  expected 
increase  in  consumption  of  this  product  in  the  medium  term.  One  company 
representing the retail sector also made itself known. 

(104)  Two  of  the  importers  and  the  one  company  representing  the  retail  sector  expressed 
clear  opposition  against  the  continuation  of  the  measures,  while  the  third  importer 
identified  both  advantages  and  disadvantages  with  the  measures  in  place.  All  three 
companies  asserted  that  the  Community  is  dependent  on  imports  of  the  product 
concerned  from  the  PRC  since  the  Community  production  is  unable  to  satisfy  the 
demand  on  the  market.  In  addition,  they  underlined  that  consumption  in  the 
Community was due to increase significantly. It was however also acknowledged that 
the measures in force have prevented so called C-grade spectra lamps of low quality 
from  making  significant  inroads  into  the  Community  market.  Given  the  fact  that 
consumers  could  have  problems  in  distinguishing  these  from  the  higher  quality  B 
grade  lamps,  the  abolition  of  measures  could  mean  that  the  B-grade  lamps  that  are 
central  to  the  business  of  the  importers  in  question  would  have  difficulties  in 
competing. 

6. 

Interest  of  consumers  and  the  development  of  the  product  concerned  on 
the Community market 

(105)  Several  interested  parties  submitted  that  anti-dumping  duties  are  contrary  to 
Community energy saving policies, as they have resulted in excessive retail prices for 
consumers  and  are  therefore  suppressing  the  sales  of  energy  saving  lamps  (CFL-i). 
Conversely,  one  party  argued  that  the  discontinuation  of  measures  would  be 
detrimental  to  the  Community  environment  policy  as  the  CFL(i)  produced  in  China 
contain more mercury and therefore have a greater negative effect on the environment 
when disposed of then the ones produced in the Community. 

EN 

23 

   EN 

 
(106)  Anti  dumping  measures  are  aimed  at  addressing  unfair  competitive  advantages 
resulting  from  practices  of  dumping  of  imports  to  the  Community.  The  existence  of 
other  Community  policies  as  such  would  therefore  not  preclude  the  imposition  and 
continuation of duties should these be needed  

(107)  Nevertheless,  the  investigation  has  shown  that  the  consumption  and  demand  for  the 
product concerned has increased rapidly on the European market and this increase in 
demand  is  the  likely  consequence  of  an  increased  interest  amongst  European 
consumers  to  reduce  their  energy  expenditure  and  thus  contribute  to  a  sustainable 
development. It is also clear that the measures in force have a significant impact on the 
retail  prices  in  the  Community  of  the  product  concerned.  This  has  meant  that 
consumers  that  would  potentially  have  made  the  switch  from  incandescent  lamps  to 
the product concerned have not been able to do so given the substantial difference in 
retail price between these products—a difference exacerbated i.a. by the measures in 
force.  To  this  end  the  supply  to  the  market  of  the  product  concerned  in  sufficient 
quantities  and  at  reasonable  prices  must  therefore  also  be  taken  into  account  when 
assessing the Community interest in this case.  

(108)  This  should  be  set  against  the  background  of  Community  policy  to  foster  the  use  of 
energy saving lamps, which can only reinforce the arguments mentioned above. 

(109)  When  taking  into  account  the  probable  market  developments,  it  is  highly  likely  that 
the  continuation  of  measures  would  pose  a  significant  burden  on  consumers  in  the 
medium and long term.  

(110)  In  reaction  to  the  disclosure,  the  manufacturer  in  the  Community  supporting  the 
complaint  has  argued  that  the  measures  in  force  have  not  had  a  significant  upward 
effect on  consumer  prices  in  the  Community.  Regarding  this  argument,  it  should  be 
noted  that  whilst  it  may  be  true that  the  consumer  price  of  some  models has  gone 
down  since  the  imposition  of  the  measures,  it  cannot  be  denied  that  duties  of  up  to 
66% which have furthermore been extended to circumventing imports must have had 
an  upward  effect  on  price.  Moreover,  in  the  Member  State  with  the  biggest 
Community retail market, according to the supporter's own data, prices for three out of 
the five models were higher at the start of 2006 than at the start of 2001. The company 
referred to as company A in the Annex stated it was unclear whether the complainant 
has  withdrawn  its  complaint.  As  was  stated  before,  the  manufacturer  in  the 
Community supporting the complaint maintains its complaint. 

(111)  Some interested parties have also asserted that the measures go against the Community 
interest as the Community manufacturers lack the capacity to satisfy the demand and 
that imports therefore are necessary to ensure the supply to the market 

(112)  The purpose of anti-dumping measures is  neither to prohibit imports  nor to limit the 
supply  of  CFL(i)  to  the  Community  market.  As  show  above  the  measures  in  place 
have not been detrimental to imports. On the contrary, the growing consumption has 
lead  to  an  increase  both  in  absolute  terms  as  well  as  in  the  market  share  of  imports 
from the PRC in the period considered. However, it is clear that in the medium term, 
the  impact  on  supply  emanating  from  a  continuation  of  measures  may  be  more 
significant 

EN 

24 

   EN 

 
(113)  Some  interested  parties  have  furthermore  stated  that  the  measures  in  place  distort 
competition  on  the  Community  market  as  only  some  operators  are  able  to  source 
CFL(i)  lamps  from  the  producers  in  the  PRC  that  are  subject  to  zero  or  very  low 
duties. Other operators only have limited market access as they can only import from 
exporting producers that are subject to high duties.  

(114)  It  should  be  recalled  that  Article  21  of  the  basic  Regulation  refers  to  the  need  to 
remedy the trade distorting effects of injurious dumping. To this end, the imposition of 
measures  will  help  to  offset  the  advantage  to  exporters  resulting  from  the  dumping. 
Duties would thus help in maintaining a level playing field between on the one hand, 
Community producers, third country exporters and exporters in the country concerned 
where  no  dumping  has  been  found  and  on  the  other  hand,  exporters  that  have  been 
found to be operating by way of dumping practices. The fact that some exporters are 
subject to higher duties than others simply reflects different dumping margins between 
different  exporters  and  does  not  therefore  result  in  discrimination  or  a  distortion  of 
competition  between  importers  with  access  to  different  sources  in  the  PRC.  In 
addition, the investigation has shown that Community operators can access to supply 
of  CFL(i)  from  a  number  of  producers  in  the  Community  as  well  as  in  the  Country 
concerned and third countries and no evidence has been provided that would support 
the claim that some operators are excluded from access to the market. In view of the 
above, it must be concluded that the continuation of measures will have a significant 
effect on consumers in terms of retail prices, and availability of supply, in particular in 
the medium to long-term. 

7. Conclusion on Community interest and duration of the measures. 

(115)  Article 21(1) of  the Basic Regulation  provides that special consideration be given to 
the  need  to  eliminate  the  trade  distorting  effects  of  injurious  dumping  and  one 
producer,  accounting  for  a  substantial  proportion  of  Community  production,  is 
suffering the effects of the injurious dumping established by the investigation. Against 
that however, there are substantial considerations that lead to the conclusion that it is 
in  the  Community  interest  to  discontinue  the  measures;  the  Community  industry  is 
itself  heavily  reliant  on  imports  from  the  PRC  to  meet  demand,  which  is  expanding 
rapidly,  some  Community  producers  themselves  do  not  favour  a  continuation  of  the 
measures,  and  the  measures  have  been  shown  to  have  a  significant  impact  on 
consumer  prices  and  hence  on  the  choices  made  by  consumers  as  to  whether  to  buy 
CFL(i) or less efficient incandescent lamps. 

(116)  Having regard to all the interests concerned, it is concluded that the overall balance of 
the  relevant  interests  lies  in  discontinuing  the  measures.  However,  in  light  of  the 
considerations  noted  above  regarding  the  interests  of  the  producer  supporting 
continuation, when weighing them against the interests at stake and in particular those 
of  the  other  producers  in  the  Community,  it  is  in  the  short  term  interest  of  the 
Community  to  continue  the  measures  for  a  further  adjustment  period.  It  is  therefore 
appropriate that the measures be maintained only for one year before they lapse. After 
this  the  likely  negative  effects  on  consumers  and  other  operators  would  be 
disproportionate  to  the  benefits  which  Community  manufacturers  would  derive  from 
the measures.  

F. 

FINAL PROVISIONS 

EN 

25 

   EN 

 
(117)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the existing measures be discontinued after 
one year They were also granted a period to submit comments and claims subsequent 
to  disclosure.  None  of  the  disclosure  comments  received  was  such  as  to  alter  the 
conclusions as contained in this regulation. 

(118)  It  follows  from  the  above  that  the  anti-dumping  duties  should  be  discontinued  after 

one year.  

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

A definitive anti-dumping duty is hereby imposed on imports of electronic compact 
fluorescent  discharge  lamps  functioning  on  alternating  current  (including  electronic 
compact  fluorescent  discharge  lamps  functioning  on  both  alternating  and  direct 
current),  with  one  or  more  glass  tubes,  with  all  lighting  elements  and  electronic 
components fixed to the lamp foot, or integrated in the lamp foot, falling within CN 
code  ex  8539  31  90  (TARIC  code  8539  31  90  95)  and  originating  in  the  People's 
Republic of China.  

The rate of the anti-dumping duty applicable to the net, free-at-Community frontier 
price, before duty for products manufactured by the companies listed below shall be 
as follows: 

Company 

Anti-dumping 
duty (%) 

TARIC additional code 

Changzhou Hailong 
Electronics & Light 
Fixtures Co., Ltd Luoyang, 
Changzhou, Jiangsu 
Changzhou 213104 

People's Republic of China 

City Bright Lighting 
(Shenzhen) Ltd 
Shenzhen 

People's Republic of China 

Deluxe Well Enterprises 
Ltd 
Block 17-18, Hong Qiao 
Tao Industrial Zone 
Bao An Yuan 
Shenzhen 

People's Republic of China 

Lisheng Electronic & 
Lighting (Xiamen) Co., 
Ltd 

59,5 

A234 

17,1 

37,1 

A235 

A236 

0,0 

A237 

EN 

26 

   EN 

 
Xiamen 

People's Republic of China 

Philips & Yaming Lighting 
Co., Ltd 
1805 Hu Yi Highway 
Malu Jia Ding District 
Shangai 201801 

People's Republic of China 

Sanex Electronics Co., Ltd 
1 Xiangyang Road, 
Xiangcheng Town, 
Xiangcheng District, 
Suzhou, Jiangsu, 
People's Republic of China 
Shenzhen Zuoming 
Electronic Co. Ltd 
Shenzhen, 
Guangdong 

People's Republic of China 

Zhejiang Sunlight Group 
Co., Ltd 
129 Fengshan Road, 
Zhejiang 
Shangyu 213104 

People's Republic of China 

32,3 

A238 

20,2 

8,4 

35,3 

A239 

A240 

A241 

All other companies 

66,1 

A999 

3. 

The definitive anti-dumping duty of 66,1 % and applicable to imports originating in 
China is hereby  extended  to  imports  of the  same  product  mentioned  in  paragraph 
1 consigned  from  the  Socialist  Republic  of  Vietnam,  the  Islamic  Republic  of 
Pakistan  and  the  Republic  of  the  Philippines whether  declared  as  originating  in  the 
Republic  of  Vietnam,  the  Islamic  Republic  of  Pakistan  and  the  Republic  of  the 
Philippines or not (TARIC code 8539 31 90 92). 

4. 

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

Article 2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Communities. It shall be in force for a period of 1 year after 
its entering into force. 

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

EN 

27 

   EN 

 
Done at Brussels,  

For the Council 
The President 

EN 

28 

   EN 

 
 
 
 
 
ANNEX 

Company A  

a) Imported quantities 

During  the  RIP  Company  A  imported  between  50  and  60  million  CFL-i  lamps  from  the 
country  concerned.  In  terms  of  volumes  sold  on  the  Community  market,  Company  A 
imported  between  70%  and  80%  of  its  sales.  In  terms  of  value,  the  imported  products 
generated  less  revenue.  Whereas  the  imported  volumes  represented  around  three  times  the 
volumes manufactured in the Community, in terms for revenues for Company A the imports 
generated just a little more than 50% of the total revenues from the Community sales. 

b) Relation to exporting producers in the country concerned 

Company  A  has  two  related  exporting  producers  in  the  country  concerned..  Company  A 
sources most of its imports from these two related exporting producers. In the RIP, these two 
exporting producers exported 47% of their production to the EC. 

c) Import sourcing strategy, defensive (temporary) or strategic (long-term) 

Company A has taken a strategic, long-term decision to source from the country concerned in 
view of being able to offer the full product range to its customers. 

d) Production in the Community 

Company  A  is  the  second  largest  manufacturer  of  CFL-i  in  the  Community,  employing 
approximately  600  persons  for  the  production  and  sales  of  the  product  under  consideration. 
According to Company A another two production lines will be installed in its factory, adding 
another 15-20 million units thereby adding about half of its current production capacity. The 
new production lines are destined for production of the product concerned. 

As  also  for  the  other  manufacturers  in  the  Community,  Company  A's  production  in  the 
Community  mainly  consists  of  assembling  components  from  several  sources.  In  this  case, 
slightly less than half of these components are sourced from within the Community. Rules of 
origin  are  governed  by  Customs  Law,  particularly  Council  Regulation  (EEC)  No  2913/9211 
establishing the Community Customs Code, in particular Articles 22 to 27. The investigation 
showed  that  the  product  concerned  has  a  different  customs  classification  than  the  imported 
the 
components.  This  re-classification  results  from  a  substantial 
components. On these grounds, and based on the information gathered in this investigation it 
can therefore be concluded that the products concerned manufactured by Company A are of 
Community origin. 

transformation  of 

e) Location of head-quarters and main share-holders 

Company  A  is  a  division  of  a  large  European  company  group  with  headquarters  in  the 
Community.  

f) Location of Research & Development-departments 

11 OJ L 302, 19.10.1992, p.1 

EN 

29 

   EN 

 
                                                 
The main research & development centre of Company A is located in one Member State. In 
addition,  the  majority  of  the  research  &  development  plants  especially  those  linked  to  the 
development  of  the  production  process  are  located  close  to  the  production  plants,  i.e.  in 
another Member State and in the country concerned.  

Company B 

a) Imported quantities 

During  the  RIP,  Company  B  imported  between  11  and  18  million  CFL-I  lamps  from  the 
country concerned. In terms of volumes sold on the Community market, Company B imported 
between 20 % and 30 % of its sales during the RIP. 

In  terms  of  value,  the  imported  products  generated  less  revenue.  The  imported  products 
generated between 15 % and 20 % of the total revenues. 

b) Relation to exporting producers in the country concerned 

Company  B  has  one  related  exporting  producer  in  the  country  concerned.  The  production 
capacity of this related exporting producer was approximately 40 million units during the RIP, 
or  slightly  less  than  the  capacity  of  Company  B's  production  capacity  at  its  plants  in  the 
Community.  However,  during  the  RIP,  Company  B  did  not  import  any  CFL-i  from  this 
related exporting producer, but from independent exporting producers. 

One independent exporting producer in the country concerned, with a significant production 
capacity  and  significant  sales  to  the  Community,  alleged  that  Company  B  has  showed 
willingness  to  acquire  it.  The  exporting  producer  alleged  that  Company  B  should  not  be 
included  in  the  definition  of  the  Community  production  as  it  had  shown  interest  in 
acquisitions  of  independent  exporting  producers  in  the  country  concerned  and,  therefore, 
would  be  further  shielded  from  injurious  dumping  once  this  or  any  other  acquisition  would 
take  place.  The  allegation  was  not  substantiated  by  any  documentary  evidence  and  has 
therefore to be rejected. 

c) Import sourcing strategy, defensive (temporary) or strategic (long-term) 

Company  B  considers  its  imports  to  be  a  defensive  move.  It  claims  that  its  imports  are  of 
temporary nature and would be replaced by CFL-i manufactured in the Community. Indeed, 
after the end of the RIP, Company B has been in the process to install new capacity at one of 
its plants in the Community.  

d) Production in the Community 

Company B is the largest producer in the Community. It employs approximately 700 persons 
for the production and sales of the product concerned. As is the case for the other producers in 
the  Community,  Company  B's  production  in  the  Community  mainly  consists  of  assembling 
components from several sources. In this case, almost all components are sourced from within 
the Community. 

e) Location of head-quarters and main share-holders 

Company  B  is  a  division  of  a  large  European  company  group  with  headquarters  in  the 
Community. 

EN 

30 

   EN 

 
f) Location of Research & Development-departments 

The main research & development centre of Company B is located in one Member State. In 
addition,  some  of  the  research  &  development  plants  especially  those  linked  to  the 
development of the production process are located close to the production plants, i.e. in two 
other Member States (including for components) and in the country concerned. 

Company C  

a) Imported quantities 

During  the  period  considered  Company  C  imported  between  3  and  7  million  CFL-I  lamps 
from the country concerned. In terms of volumes sold on the Community market, Company C 
imported between 30 % and 40 % of its sales.  

In  terms  of  value,  the  imported  products  generated  less  revenue.  The  imported  products 
generated only between 20 % and 30 % of the total revenues. 

b) Relation to exporting producers in the country concerned 

Company  C  has  one  related  exporting  producer  in  the  country  concerned,  from  which  it 
sources  most  of  its  imports.  The  capacity  of  this  related  exporting  producer  was 
approximately  five  times  larger  than  Company  C's  production  capacity  at  its  plant  in  the 
Community. 

c) Import sourcing strategy, defensive (temporary) or strategic (long-term) 

Company  C  has  stated  that  it  is  a  strategic,  long-term  decision  to  source  from  the  country 
concerned in view of being able to offer the full product range to its customers. Given the low 
purchase  prices  and  the  low  shipping  costs,  the  circumstances  according  to  the  company 
would not entail any economic advantage in producing this kind of products concerned in the 
EU in such volumes as to satisfy the demand.  

d) Production in the Community 

Company  C  employs  approximately  450  persons  in  the  production  and  sales  of  the  product 
concerned,  mainly  at  its  factories  in  one  Member  State.  Company  C's  production  in  the 
Community mainly consists of assembling components from several sources. Less than half 
of these components are sourced from within the Community. The investigation showed that 
the  product  concerned  has  a  different  customs  classification  than  the  imported  components. 
This  re-classification  results  from  a  substantial  transformation  of  the  components.  On  these 
grounds,  and  based  on  the  information  gathered  in  this  investigation,  it  has  been  concluded 
that the products concerned manufactured by Company C are of Community origin.  

e) Location of head-quarters and main share-holders 

Company  C  is  a  division  of  a  large  Company  group  with  headquarters  in  a  third  country. 
However, the headquarters of Company C, which is a separate legal entity, is located in the 
Community. 

EN 

31 

   EN 

 
Despite being part of a global group with headquarters in a third country, Company C is fully 
competent to take all business decisions on production, imports and sales strategy concerning 
CFL-i for the Community market. 

f) Location of Research & Development-departments 

The main research & development centre of Company C. for the product concerned is located 
in one Community Member state. In addition, some research & development also takes place 
in the head quarters in the third state. Moreover, research & development, especially linked to 
the production process, is also located close to the production plants, i.e. in the Community 
and in the country concerned. 

Company D  

a) Imported quantities 

During  the  period  considered  Company  D  imported  between  2  and  3  million  CFL-i  lamps 
from the country concerned. In terms of volumes sold on the Community market, Company D 
imported between 50 % and 60 % of its sales. 

In  terms  of  value,  the  imported  products  generated  less  revenue.  The  imported  products 
generated less than between 40% and 50% of the total revenues. 

b) Relation to exporting producers in the country concerned 

Company  D  has  no  related  exporting  producer  in  the  country  concerned.  Imports  from  the 
country concerned are sourced from independent exporting producers. 

c) Import sourcing strategy, defensive (temporary) or strategic (long-term) 

Company  D  has  stated  that  it  is  a  strategic,  long-term  decision  to  source  from  the  country 
concerned in view of being able to offer the full product range to its customers. According to 
the  company,  it  would  not  be  economically  advantageous  to  produce  this  kind  of  products 
concerned in the EU in such volumes as to satisfy the demand.  

d) Production in the Community 

Company D employs between 35 and 85 persons for the production and sales of the product 
concerned, mainly at its factory in the Community. Its manufacturing activity mainly consists 
in assembling components, less than half of them being sourced in the EU. The investigation 
showed  that  the  product  concerned  has  a  different  customs  classification  than  the  imported 
components.  This  re-classification  results  from  a  substantial 
the 
components. On these grounds, and based on the information gathered in this investigation, it 
has  been  concluded  that  the  products  concerned  manufactured  by  Company  D  are  of 
Community origin. 

transformation  of 

e) Location of head-quarters and main share-holders 

During the RIP, Company D was owned by a private equity-group. However, after the end of 
the RIP, Company D has been acquired by a manufacturer in a third country. Company D has 
its corporate headquarters the Community.  

EN 

32 

   EN 

 
f) Location of Research & Development-departments 

All Company D's centres of research & development are based in the Community. 

EN 

33 

   EN