Council Regulation (EC) No 1205/2007 of 15 October 2007 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: 2007-10-15
Institutions: Council of the European Union
Subjects: China, Pakistan, Philippines, Viet Nam, anti-dumping duty, anti-dumping legislation, export, import, lighting equipment, originating product

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 1205/2007

of 15 October 2007

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,

imposed provisional anti-dumping duties by Regulation
(EC) No 255/2001 (3) (the provisional Regulation).

Having regard to the Treaty
Community,

establishing the European

(2)

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)
(the
basic Regulation) and in particular Articles 9 and 11(2) thereof,

Having regard to the proposal
consulting the Advisory Committee,

from the Commission, after

Whereas:

A. PROCEDURE

Measures in force

(1)

the Council

By Regulation (EC) No 1470/2001 (2) (the original Regu-
lation),
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

(3)

(4)

By Regulation (EC) No 866/2005 (4) (the extending Regu-
lation), 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 Regu-
lation.

By Regulation (EC) No 1322/2006, (the amending Regu-
lation), 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
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
fluorescent discharge lamps func-
electronic compact
tioning
current)
alternating
both
on
(AC-CFL-i).

that direct

current

voltage

direct

and

Current investigations

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
the
Community Federation of Lighting Industry of Compact
Fluorescent Lamps Integrated (CFL-i) (the applicant) on
in this case more than
behalf of a major proportion,
25 %, of the total Community production of CFL-i.

lodged on 18 April 2006 by

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

(2) OJ L 195, 19.7.2001, p. 8. Regulation as amended by Regulation

(EC) No 1322/2006 (OJ L 244, 7.9.2006, p. 1).

(3) OJ L 38, 8.2.2001, p. 8.
(4) OJ L 145, 9.6.2005, p. 1. Regulation as amended by Regulation (EC)

No 1322/2006.

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(5)

(6)

(7)

(8)

(9)

that

sufficient evidence existed for

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
the
Committee,
initiation of a review,
the Commission, on 19 July
initiated an investigation (1) pursuant to Article
2006,
the basic Regulation. The applicant also
11(2) of
interim review pursuant
lodged a request for a partial
the basic Regulation. Having
to Article 11(3) of
the Advisory
determined,
Committee,
the
initiation of a review, the Commission, on 8 September
initiated an investigation (2) pursuant to Article
2006,
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.

sufficient evidence existed for

consultation

after
that

of

(11) A questionnaire was also sent to the known producers in
the potential analogue country, namely the Republic of
Korea (Korea).

(12)

(13)

Replies to the questionnaires were also received from
in the
four Community producers,
(which also
analogue
to
imported)
Community producers.

country Korea, one
and seven suppliers of

two producers

components

retailer

information
The Commission sought and verified all
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:

Investigation and parties concerned

(a) exporting producer in the PRC related to the applicant

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

representatives of

as well

as

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.

the apparent high number of exporting
In view of
producers in the PRC and importers of
the product
concerned, sampling was envisaged in the notice of
in accordance with Article 17 of the basic
initiation,
to be able to decide whether
Regulation.
In order
to select a
sampling would be necessary and,
if so,
sample,
sampling forms
asking specific information on average sales volume
and prices of each exporting producer and importer
concerned.

the Commission sent out

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,

(10)

Complete replies were received from three Chinese
exporters and three importers.

(1) OJ C 167, 19.7.2006, p. 13.
(2) OJ C 217, 8.9.2006, p. 2.

(f) producers in the analogue country

— Osram Korea Ltd., Seoul, Republic of Korea,

— Hyosun Electric Co., Ltd., Paju-City, Republic of

Korea,

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(g) Community manufacturers

— Osram GmbH, München and Augsburg, Germany
and Osram Slovakia, Nove Zamky, Slovakia,

— Philips Lighting B.V., Eindhoven, Netherlands and

Philips Lighting Poland S.A, Pila, Poland,

— General Electric Zrt., Budapest and Nagykaniza,

Hungary,

— 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

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

The product concerned is the same as determined in the
amending Regulation, i.e. electronic compact fluorescent
functioning on alternating current
discharge
(including
fluorescent discharge
lamps
functioning on both alternating and direct
current), with one or more glass tubes, with all lighting

lamps
electronic

compact

(14)

(15)

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,

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

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
lamps)
manufactured in the Community (CFL-i lamps for profes-
sional uses).

than the CFL-i

In respect of the alleged different quality between CFL-i
lamps imported from the PRC and CFL-i lamps manu-
factured 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
the like
elements
product, as defined in recital 13 of the provisional Regu-
lation, was incorrect, the definition of the original Regu-
lation, as amended by Regulation (EC) No 1322/2006,
has been maintained in this investigation.

the description of

showing that

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.

(17)

(18)

(19)

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C. LIKELIHOOD OF CONTINUATION AND/OR
RECURRENCE OF DUMPING

1. Dumping of

imports during the investigation

period

(20)

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.

this treatment nor market economy
granted neither
treatment. This was done
in agreement with the
Chinese authorities. These three exporting producers
represented more than 30 % of the total exported quan-
tities 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 cooperation from companies
treatment nor market
receiving neither
economy status was low.

individual

(21)

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

(25)

Verification visits were carried out at the premises of the
three cooperating exporting producers:

— Zhejiang Yankon Group Co. Ltd,

— Shenzhen Zuoming Electronic Co. Ltd,

— Osram China Lighting Ltd.

(22)

(23)

Sampling/cooperation

It is recalled that in the original investigation a total of
nine Chinese exporting producers fully cooperated 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 provi-
sional Regulation and recital 17 of the original Regu-
lation). 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.

Normal value

D o m e s t i c
A n a l o g u e C o u n t r y

S a l e s

P r i c e s

b a s e d

o n

t h e

(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.

the apparent

In view of
large number of Chinese
exporting producers listed in the complaint sampling
was envisaged in the notice of initiation for the determi-
nation 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
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.

themselves

to make

asked

(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
investigation.
used an analogue country in the original

(28) However, no cooperation 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.

(24)

17 Chinese exporting producers replied to the sampling
forms. The investigation was based on information from
producers which
two
had
exporting
originally received individual
treatment, and also on
information from a third one that, originally, was

cooperating

(29)

Therefore, producers in other market economy third
countries,
India and the
Republic of Korea (Korea), were contacted with a view
to cooperating with the review investigation.

including Indonesia, Malaysia,

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(30)

two

filed

level of cooperation was obtained from
The highest
Korea where
questionnaire
producers
responses and were willing to subsequently undergo
on-spot 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 represen-
tative. Moreover,
the existence of
it was found that
several duties, such as countervailing duty, special coun-
tervailing 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.

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
to the Commission.
Comparison was also undertaken as explained above.

information available

companies which

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

obtained market

(31)

in Korea were

Subsequently, various producers and producers’ asso-
ciations
contacted and invited to
cooperate through the completion of a questionnaire.
Two producers in the Republic of Korea provided a ques-
tionnaire 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 cooperating 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
insurance, handling,
physical characteristics,
loading and ancillary costs where applicable and justified.

transport,

(38)

(39)

Dumping margin

(34) Dumping margins were established for

the two co-
operating exporting producers who had received indi-
vidual 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.

(40)

(36) As to dumping margins for companies not receiving
treatment,

market economy treatment or

individual

Therefore,
available
producers,
continued dumping.

in particular on the basis of
the evidence
exporting
three
from the
the investigation shows strong evidence of

cooperating

2. Developments of

imports should measures be
repealed

Preliminary remarks

is emphasised that

the Community market

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 very
attractive given its size and the ever increasing demand
for the product concerned. Accordingly, many Chinese
exporting producers have established a well developed
the
distribution network which facilitates
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 Regulation (EC) No 866/2005.
Also,
the level of cooperation by Chinese exporting
producers was rather poor (see above). In addition, the
extent of dumping identified in the RIP points to a like-
lihood of continuation of dumping should measures
lapse.

sales of

Relationship between prices in the Community and the
exporting country

the

three

achieved by

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

the Chinese

alternative

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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 co-
operating 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
the
to
different
pattern would
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 exports.

exports

for

be

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

(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

(43) All three cooperating 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 Regulation (EC) No 866/2005,

found

concerned. Again,

the
existing measures were circumvented by consignments
through Vietnam, Pakistan and the Philippines. Subse-
quently, measures were extended to consignments of
circumvention
the product
the
attractiveness
practices
the
of
for Chinese exporting producers.
Community market
This attractiveness will
likelihood make Chinese
in all
producers export increased volumes once measures are
repealed. Since exports were already made at dumped
prices during
in place),
dumping is likely to continue once measures lapse and
export volumes subsequently increase.

(with measures

the RIP

stress

the

Conclusion

(45) Dumping at significant levels (beyond 50 %) was found
to occur during the RIP. The Community market has

to

concerned.

size and its
been and will be attractive given its
In
the product
increasing demand for
addition,
the price level on the Community market
with prices substantially beyond the levels in the PRC
are
adds
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 conti-
nuation of dumping very likely once measures are
repealed.

attractiveness. Once measures

such

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)

is manufactured in the Community by four

CFL-i
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., Eindhoven, Netherlands and

Philips Lighting Poland S.A, Pila, Poland,

— Sylvania Lighting International, Germany, with a

production site in the United Kingdom.

(48) All four cooperating manufacturers belong to multina-
tional 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.

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(50)

(51)

constitutes

therefore
of Community

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
a major
certainly
production. Moreover,
proportion
Article 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.

(52)

(53)

recurrence of

Therefore, for the purpose of the analysis of continuation
and/or
the
injury,
supporting company has been analysed. The analysis of
the measures have had on the other
the
Community manufacturers
is described below under
‘Community interest’.

situation of

impact

the

2. Situation on the Community market

Community consumption

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.

include

imports

CN code 8539 31 90 may
from
products other than the product concerned. As a conse-
quence, 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, infor-
mation 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
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).

the product concerned,

(54)

The Community consumption developed as follows:

Community consumption
(million of units)

Index (2003 = 100)

Table 1

2003

112

100

2004

144

129

2005

198

176

RIP

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
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.

incandescent

Development of imports

V o l u m e s , m a r k e t s h a r e a n d p r i c e s o f

i m p o r t s f r o m t h e P R C

(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 investi-
gation (no dumping found) is also valid in this expiry review.

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Table 2

2003

2004

2005

RIP

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

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

100

100

148

147

262

194

335

205

Total imports (thousands of units)

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 prices of dumped imports

Between
EUR 1,2 and
EUR 1,3

Between
EUR 1,0 and
EUR 1,1

Between
EUR 0,9 and
EUR 1,0

Between
EUR 0,9 and
EUR 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 %.

(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 corre-
sponding 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.

V o l u m e s , m a r k e t s h a r e s a n d p r i c e s o f

i m p o r t s f r o m o t h e r c o u n t r i e s

(61)

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.

(62)

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).

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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

Average prices of imports

between 1 %
and 2 %

between 0 %
and 1 %

between 0 %
and 1 %

between 0 %
and 1 %

Between
EUR 1,2 and
EUR 1,3

Between
EUR 1,1 and
EUR 1,2

Between
EUR 1,2 and
EUR 1,3

Between
EUR 1,2 and
EUR 1,3

Volume of imports from Taiwan

between 0 and
1 million units

between 1 and
2 million units

between 3 and
4 million units

between 3 and
4 million units

Market share

Average prices of imports

between 0 %
and 1 %

between 0 %
and 1 %

between 1 %
and 3 %

between 1 %
and 3 %

Between
EUR 0 and
EUR 1,0

Between
EUR 0 and
EUR 1,0

Between
EUR 0 and
EUR 1,0

Between
EUR 0 and
EUR 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

Market share

Average prices of imports

between 3 %
and 4 %

between 2 %
and 3 %

between 4 %
and 5 %

between 4 %
and 5 %

Between
EUR 1,0 and
EUR 1,1

Between
EUR 1,0 and
EUR 1,1

Between
EUR 1,0 and
EUR 1,1

Between
EUR 1,0 and
EUR 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.

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Production, installed production capacity and capacity utilisation rate

Table 4

Production

Installed production capacity

Capacity utilisation rate

2003

100

100

100

2004

107

100

107

2005

90

100

90

RIP

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 manu-
facturing.

Table 5

Stocks

2003

100

100

2004

2005

49

49

0

0

RIP

116

168

Stocks

Stocks as % of overall sales volumes on
the Community market

(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

Sales Volumes

Market share of Community
consumption

Growth of Sales turnover

Table 6

2003

100

100

100

2004

102

80

101

2005

103

59

93

RIP

83

44

74

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(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.

Table 7

Sales prices

Average Sales price

2003

100

2004

98

2005

90

RIP

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.

Table 8

Employment, wages and productivity per employee

Employees

Wages

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

2003

100

100

100

2004

97

97

109

2005

90

90

101

RIP

82

85

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.

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Table 9

Profitability, return on investment and cash flow

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

Return on total assets

Cash Flow (% on total sales)

2003

100

100

100

2004

126

110

94

2005

38

36

57

RIP

– 36

– 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.

Table 10

Investments and ability to raise capital

Investments

2003

100

2004

55

2005

95

RIP

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 11

2003

100

100

2004

323

104

2005

346

104

RIP

941

188

Re-sales of imported CFL-i lamps

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

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(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

Export sales of Community-manufactured
CFL-i lamps

Average price of exported Community-
produced CFL-i lamps

Table 12

2003

100

100

2004

68

96

2005

46

102

RIP

60

87

(86)

The export performance by the supporter has dete-
riorated during the period considered. Part of the expla-
nation for this is that, for some of the export markets,
the supporter has changed the location from where it
from Community manufac-
lamps,
supplies the CFL-i
turing 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.

(91)

(88)

(89)

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

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 estab-
lished distribution channels
in the Community for
Chinese exports. Chinese exports would therefore be
likely to increase.

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.

supporter’s

the

situation. Whether
thereto
would be a drop in sales (and hence in production), a
reduction in prices, or both, the financial deterioration
would be substantial.

response

The investigation has not identified any other factors that
into question the likely effect of dumped
would put
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
from non-dumped sources
magnitude
link.
would,
Moreover, no other factors to which injury must be
attributed have been identified. In particular, there is no
evidence that any factors enumerated in Article 3(7) of
the Basic Regulation apply, and certainly not that is so
important as to break the causal link between dumping
and injury.

likelihood, not break the causal

imports

in all

that

(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 conti-
nuation 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.

(90)

The combined effect of such volumes and prices would
be likely to lead to a deterioration of the supporter’s

(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.

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E. COMMUNITY INTEREST

1. Preliminary remarks

(94)

Firstly,
it is recalled (see recital 50 above), that since
Article 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 Regu-
lation, 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
recurrence of dumping if

continuation as well as
measures were to be repealed.

(97)

There is likelihood, should the measures be repealed, that
the loss-making situation will continue. The manufac-
turing plants currently employ several hundred staff.
the
Therefore
be
Community manufacturer
complaint
that anti-dumping measures against dumped imports
from the country concerned be re-imposed.

in the
supporting the

it would

interest

of

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.
re-imposition of
measures would not be in the interest of this manu-
facturer.

is therefore concluded that

It

of measures. While

(identified as
(100) Two other Community manufacturers,
‘Company C’ and ‘Company D’
in the Annex) both
opposed
these
re-imposition
companies both source CFL-(i)-s from the PRC they
both
the
have
Community. For this reason,
it cannot be ruled out
that the anti-dumping measures would be contrary to
these two producers’
in the
medium term.

interests, especially not

production

substantial

still

in

4. Interest of suppliers

(101) Several suppliers, accounting for a significant amount of
total supplies to the Community industry, cooperated
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
to re-impose anti-dumping
measures against dumped imports from the country
concerned.

the suppliers

5. Interest of importers/traders and retailers

the

total

the product

import volume of

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

this product

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(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
three companies asserted that
measures in place. All
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
inroads into the
low quality from making significant
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 diffi-
culties in competing.

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 deve-
the continuation of
is highly likely that
on

lopments,
measures would
significant
consumers in the medium and long term.

burden

pose

it

a

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

(110)

energy

contrary

interested parties submitted that anti-dumping
(105) Several
duties
saving
to Community
are
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 envir-
onment when disposed of then the ones produced in the
Community.

advantages

(106) Anti dumping measures are aimed at addressing unfair
resulting from practices of
competitive
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.

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
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.

the five models were higher at

(107) Nevertheless,

the

shown that

amongst European consumers

the
investigation has
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
to
reduce their energy expenditure and thus contribute to
that
a sustainable development.
the
impact on the
measures in force have a significant
retail prices
the product
in the Community of
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

is also clear

It

(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 shown above, the measures
in place have not been detrimental to imports. On the
lead to an
contrary,
increase both in absolute terms as well as
in the
market share of imports from the PRC in the period
considered. However,
in the medium
term, the impact on supply emanating from a conti-
nuation of measures may be more significant.

the growing consumption has

is clear that

it

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Official Journal of the European Union

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(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.

choices made by consumers as to whether to buy CFL(i)
or less efficient incandescent lamps.

it

the overall balance of

the interests concerned,

is
(116) Having regard to all
concluded that
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
the interests at stake and in
weighing them against
in the
particular
Community,
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.

the other producers

term interest of

is in the short

those of

it

F. FINAL PROVISIONS

(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.

(114)

to higher duties

It should be recalled that Article 21 of the basic Regu-
lation 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
simply reflects
different dumping margins between different exporters
in discrimination or a
therefore result
and does not
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
some operators are
would support
excluded from access to the market.
the
In view of
it must be concluded that the continuation of
above,
measures will have a significant effect on consumers in
terms of
in
particular in the medium to long-term.

retail prices, and availability of supply,

the claim that

than others

(118)

It follows from the above that the anti-dumping duties
should be discontinued after one year,

7. Conclusion on Community interest and duration
of the measures

is

(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
the injurious
suffering the effects of
production,
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

HAS ADOPTED THIS REGULATION:

Article 1

1.
A definitive anti-dumping duty is hereby imposed on
imports of electronic compact fluorescent discharge lamps func-
tioning 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 origi-
nating in the People’s Republic of China.

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Official Journal of the European Union

L 272/17

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

2.
for products manufactured by the companies listed below shall be as follows:

Company

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 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

Anti-dumping duty
(%)

TARIC additional
code

59,5

A234

17,1

37,1

0,0

32,3

A235

A236

A237

A238

Sanex Electronics Co., Ltd. 1 Xiangyang Road, Xiangcheng Town, Xiangcheng
District, Suzhou, Jiangsu,
People’s Republic of China

20,2

A239

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

All other companies

8,4

35,3

66,1

A240

A241

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.

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

Article 2

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

Done at Luxembourg, 15 October 2007.

For the Council
The President

L. AMADO

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Official Journal of the European Union

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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 to 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 2913/92
of 12 October 1992 establishing the Community Customs Code (1), in particular Articles 22 to 27. 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 infor-
mation gathered in this investigation it can therefore be concluded that the products concerned manufactured by
Company A are of Community origin.

(e) Location of headquarters and main shareholders

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

(f) Location of research and development departments

The main research and development centre of Company A is located in one Member State. In addition, the majority of
the research and 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.

(1) OJ L 302, 19.10.1992, p. 1. Regulation as last amended by Council Regulation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

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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 headquarters and main shareholders

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

(f) Location of research and development departments

The main research and development centre of Company B is located in one Member State. In addition, some of the
research and 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 reclassi-
fication 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 headquarters and main shareholders

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.

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.

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(f) Location of research and development departments

The main research and development centre of Company C. for the product concerned is located in one Community
Member State. In addition, some research and development also takes place in the head quarters in the third state.
Moreover, research and 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 reclassification 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 D are of Community origin.

(e) Location of headquarters and main shareholders

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.

(f) Location of research and development departments
All Company D’s centres of research and development are based in the Community.