Proposal for a Council Regulation terminating the partial interim review of the antidumping measures applicable to imports of integrated electronic compact fluorescent lamps (CFL-i) originating in the People's Republic of China
Date: 2007-11-06
Institutions: European Commission
Subjects: China, anti-dumping legislation, anti-dumping measure, import, lighting equipment, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.11.2007 
COM(2007) 683 final 

Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the antidumping measures applicable to 
imports of integrated electronic compact fluorescent lamps (CFL-i) originating in the 
People's Republic of China  

(presented by the Commission) 

EN 

   EN 

 
 
 
  
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 8 September 2006 the Commission announced by a notice, published in the Official 

EN 

2 

   EN 

 
 
 
 
 
 
 
 
 
 
 
Journal of the European Union1, the initiation of an anti-dumping proceeding pursuant 
to Article 11(3) of the basic Regulation, limited to dumping by the Company Lisheng 
Electronic & Lighting 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 by the Community Federation of Lighting Industry of Compact 
Fluorescent Lamps Integrated (2CFL-i). 

The  enclosed  Commission  proposal  for  a  Council  Regulation  contains  the  definitive 
conclusions regarding the review. 

Member States were consulted during the Anti-Dumping Committee of 11 October and 
requested to give their opinion on the proposal by the 22 October. 27 Member States 
were in favour of the proposed course of action and none 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 6 December2007 
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). 

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

1 

OJC 217 8.9.2006 p2 

EN 

3 

   EN 

 
 
 
 
 
 
 
 
 
                                                 
4) 

BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

EN 

4 

   EN 

 
 
 
Proposal for a 

COUNCIL REGULATION 

terminating the partial interim review of the antidumping measures applicable to 
imports of integrated electronic compact fluorescent lamps (CFL-i) originating in the 
People's Republic of China  

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 9 and 11(3) 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') following an investigation ('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  to  also  cover  imports  of  CFL-I  consigned  from  the 
Socialist Republic of Vietnam, the Islamic Republic of Pakistan or the Republic of the 
Philippines whether declared as originating in the Socialist Republic of Vietnam, the 
Islamic Republic of Pakistan or the Republic of the Philippines or not. The extension 
followed an anti-circumvention investigation carried out pursuant to Article 13 of the 
basic Regulation.  

2 

3 
4 
5 

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). 
OJ L 195, 19.7.2001, p.8 
OJ L 38, 8.2.2001, p. 8 
OJ L 145, 9.6.2005, p.1 

EN 

5 

   EN 

 
                                                 
(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  accordingly  only  cover  alternating  current  voltage  lamps 
(including  electronic  compact  fluorescent  discharge  lamps  functioning  on  both 
alternating and direct current) ('AC-CFL-i'). 

(4) 

By  Regulation  (EC)  No  1205/20077  (the  'prolongation  Regulation')  the  Council 
prolonged the antidumping measures in force. The prolongation was made following 
an expiry review carried out pursuant to Article 11(2) of the Basic Regulation. 

Current investigation 

(5) 

(6) 

The initiation of the investigation followed a request for a review pursuant to Article 
11(3) of the basic Regulation. The request was lodged by the Community Federation 
of  Lighting  Industry  of  Compact  Fluorescent  Lamps  Integrated  (2CFLI)  ('the 
applicant'). 

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.  

Investigation and parties concerned 

(7) 

(8) 

(9) 

The  Commission  officially  advised  the  applicant  and  the  exporting  producer  in  the 
PRC  (hereinafter  the  ‘exporting  producer’),  as  well  as  the  representatives  of  the 
government of the exporting country, of the initiation of the review. 

Interested  parties  were  given  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  order  to  obtain  the  information  deemed  necessary  for  its  investigation,  the 
Commission  sent  questionnaires  to  the  exporting  producer  concerned.  The  exporting 
producer  cooperated  by  replying  to  the  questionnaires  and  verification  visits  were 
subsequently carried out at the premises of the exporting producer as well as to other 
parties related to this exporting producer, namely:  

–  Lisheng Electronic & Lighting (Xiamen) Co. Ltd  

Related company in the PRC 

–  Megaman Electrical & Lighting Ltd (Xiamen), 

6 
7 
8 

OJ L 244, 7.9.2006, p.1 
OL L 272, 17.10.2007 p.1 
OJ C 217, 8.9.2006, p.2 

EN 

6 

   EN 

 
                                                 
Related Companies in Hongkong 

–  Neonlite Electronic & Lighting Ltd (HK) 

–  Electric Light Systems Ltd (HK) 

Related Importer in the Community 

–  IDV, Import und Direkt-Vertreibs-Ges.mbH, Germany  

Investigation Period 

(10)  The investigation period as concerns the level of dumping for the interim review of the 
one exporting producer, Lisheng Electronic & Lighting (Xiamen) Co. Ltd, covered the 
period from 1 July 2005 to 30 June 2006 ('review investigation period' or 'RIP'). 

B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

Product concerned 

(11)  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  

(12)  As  in  the  original  investigation,  it  was  found  that  CFL-i  manufactured  and  sold 
domestically  in  the  PRC,  and  CFL-i  exported  from  the  PRC  has  the  same  basic 
physical  and  technical  characteristics  and  uses.  Therefore  and  as  concluded  in  the 
prolongation Regulation, these products are alike within the meaning of Article 1(4) of 
the basic Regulation. 

Market economy treatment (MET) 

C.DUMPING 

(13)  Pursuant  to  Article  2(7)(b)  of  the  basic  Regulation,  in  anti-dumping  investigations 
concerning  imports  originating  in  the  PRC,  normal  value  is  to  be  determined  in 
accordance  with  paragraphs  1  to  6  of  the  said  Article  for  those  exporting  producers 
which  can  show  that  they  meet  the  criteria  laid  down  in  Article  2(7)(c)  of  that 
Regulation, i.e. that market economy conditions prevail in respect of the manufacture 
and sale of the like product. 

(14)  While the Chinese exporting producer was granted Market economy treatment in the 
original  investigation,  an  assessment  had  to  be  made  in  the  interim  review  as  to 
whether the relevant criteria for fulfilment of MET were still in place. A MET claims 
form  pursuant  to  Article  2(7)(b)  of  the  basic  Regulation  was  consequently  sent  and 

EN 

7 

   EN 

 
completed  by  the  Chinese  Exporting  producer,  and  its  related  company  Megaman 
Electrical & Lighting Ltd (Xiamen).  

(15)  Briefly, and for ease of reference only, the criteria for MET are set out in summarised 

form below: 

1. 

2. 

3. 

4. 

5. 

business  decisions  and  costs  are  made  in  response  to  market  signals,  and 
without significant State interference 

firms have one clear set of accounting records which are independently audited 
in  line  with  international  accounting  standards  (IAS)  and  are  applied  for  all 
purposes; 

there  are  no  significant  distortions  carried  over  from  former  non-market 
economy system; 

legal certainty and stability is provided by bankruptcy and property laws; 

currency exchanges are carried out at market rate. 

(16)  As stated before, the Commission sought and verified at the premises of the exporting 
producer and its related company Megaman Electrical & Lighting Ltd, all information 
submitted in the MET applications and deemed necessary. The investigation revealed 
that the Chinese exporting producer fulfilled all of the conditions for granting MET. 

Normal value 

(17) 

(18) 

In order to establish normal value, it was first verified whether the total domestic sales 
of  the  exporting  producer  were  representative  in  accordance  with  Article  2(2)  of  the 
Basic Regulation, i.e. that they accounted for 5% or more of the total sales volume of 
the product concerned exported to the Community.  

In view of the above requirements, the investigation revealed that domestic sales of the 
exporting  producer  could  not  be  considered  representative  and  the  normal  value 
therefore  had  to  be  constructed  in  accordance  with  Article  2(3)  of  the  basic 
Regulation,  thus  calculated  based  on  the  cost  of  production  in  the  exporting  country 
plus a reasonable amount for selling, general and administrative costs and profits. 

(19)  The normal value was accordingly established based on the exporting producer's own 
data  for  the  cost  of  manufacturing  (COM)  for  production  destined  for  domestic 
consumption  

(20)  Conversely,  the  amount  for  SGA  and  profits  could  not  be  established  in  accordance 
with the chapeau of Article 2(6) of the Basic Regulation on actual data pertaining to 
production and sales in the ordinary course of trade of the product concerned.  

(21) 

It  was  examined  whether  SGA  and  profit  could  be  established  in  accordance  with 
article  2(6)(a)  and  (b).  However,  since  no  other  exporter  were  investigated  in  this 
review the methodology in article 2(6)(a) namely the weighted average  of the actual 
amounts  of  other  exporters  could  not  be  used.  Similarly,  the  methodology  in  article 
2(6)(b)  was  not  appropriate  since  there  were  no  sales  in  the  domestic  market  of 
products belonging to the same category.  

EN 

8 

   EN 

 
(22)  Consequently,  the  Commission  calculated  a  weighted  average  using  the  SG&A 
expenses and profit rates from two co-operating exporting producers in the analogue 
country used in the expiry review pursuant to article 11(2) of the basic Regulation and 
that had domestic sales in the ordinary course of trade. The SG&A expenses and profit 
average  rates  found  in  these  co-operating  South  Korean  exporting  producers  were 
added to the cost of manufacturing incurred by the exporting producer in question with 
regard to the exported types as stipulated by Article 2(3) of the basic Regulation. 

Export price 

(23)  The  exporting  producer  made  export  sales  to  the  Community  both  directly  to 
independent  customers  and  via  related  importers  in  a  third  country  and  the 
Community.  In  all  cases  where  the  product  concerned  was  exported  to  independent 
customers  in  the  Community,  the  export  price  was  established  in  accordance  with 
Article 2(8) of the basic Regulation, namely on the basis of export prices actually paid 
or payable.  

(24) 

In cases where sales were made via a related importer or trader, the export price was 
constructed  on  the  basis  of  the  resale  prices  of  that  related  importer  to  independent 
customers.  Adjustments  were  made  for  all  costs  incurred  between  importation  and 
resale  including  sales,  general  and  administrative  expenses,  and  a  reasonable  profit 
margin, in accordance with Article 2(9) of the basic Regulation. The appropriate profit 
margin was established on the basis of information provided by unrelated cooperating 
traders/importers operating on the Community market 

Comparison 

(25)  For the purpose of ensuring a fair comparison between the normal value and the export 
price,  due  allowance  in  the  form  of  adjustments  was  made  for  differences  affecting 
prices  and  price  comparability  in  accordance  with  Article  2(10)  of  the  basic 
Regulation.  For  the  investigated  exporting  producer,  allowances  for  differences  in 
transport  costs,  ocean  freight  and  insurance  costs,  handling,  loading  and  ancillary 
costs, packing costs, credit costs, warranty and guarantee costs and commissions have 
been granted where applicable and justified.  

Interest rates used for credit purposes  

(26)  With regard to the credit cost allowance, the exporting producer claims that the deposit 
rate instead of the credit rate should be used on the grounds that, the company having 
sufficient liquidity, its credit costs are limited to the interest earnings not perceived on 
its bank deposit account. 

(27)  Following the practice consistently applied by the Community institutions, it was not 
found  appropriate  to  base  the  calculation  of  the  credit  cost  allowance  on  the  deposit 
rate on the grounds that these constitute opportunity costs as compared to actual costs. 

(28) 

In  this  context  it  is  noted  that  the  interest  customers  would  have  to  pay  in  case  of 
payment  delays  suggest  that  the  company  determined  such  interests  on  the  basis  of 
credit rates rather than deposit rates. 

Dumping Margin 

EN 

9 

   EN 

 
(29)  As provided by Article 2(11) and (12) of the basic Regulation, the weighted average 
normal values of each type of the product concerned exported to the Community were 
compared  to  the  weighted  average  export  price  of  each  corresponding  type  of  the 
product concerned. This comparison showed the existence of a dumping margin below 
de minimis for the exporting producer that exported to the Community in the RIP.  

D. CONCLUSION 

(30)  On this basis, it was concluded that, the circumstances with regard to dumping on the 
basis  on  which  measures  were  established  for  the  company  in  the  original 
investigation has not changed. The partial interim review pursuant to Article 11(3) of 
the basic Regulation should therefore be terminated. 

E. TERMINATION OF THE REVIEW  

(31)  Based  on  the  above  considerations,  the  partial  interim  review  concerning  Lisheng 
Electronic & Lighting (Xiamen) Co. Ltd should be terminated without any amendment 
to Regulation (EC) No 1205/20079. 

(32) 

Interested  parties  were  informed  of  the  essential  facts  and  considerations  on  which 
basis the Commission proposed to terminate this proceeding. Views made known were 
then examined but were not such as alter the above conclusions,  

HAS ADOPTED THIS REGULATION: 

Article 1 

The partial interim review of the anti-dumping measures applicable to imports of integrated 
electronic  compact  fluorescent  discharge  lamps  manufactured  by  Lisheng  Electronic  & 
Lighting  (Xiamen)  Co.,  Ltd  and  originating  in  the  People's  Republic  of  China,  initiated 
pursuant  to  Article  11(3)  of  Regulation  (EC)  No  384/96,  is  hereby  terminated  without  any 
amendment to Regulation (EC) No 1205/2007, the prolongation Regulation. 

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

Article 2 

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

Done at Brussels,  

For the Council 
The President 

9 

OL L 272, 17.10.2007 p.1 

EN 

10 

   EN