Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of gas-fuelled, non-refillable pocket flint lighters originating in the People's Republic of China and consigned from or originating in Taiwan and on imports of certain refillable pocket flint lighters originating in the People's Republic of China and consigned from or originating in Taiwan
Date: 2007-11-13
Institutions: European Commission
Subjects: China, Taiwan, anti-dumping duty, import, manufactured goods, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.11.2007 
COM(2007) 706 final 

Proposal for a 

COUNCIL REGULATION 

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

(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  proceedings 
concerning imports of gas-fuelled, non-refillable pocket flint lighters originating in the 
People's  Republic  of  China,  as  extended  to  the  same  lighters  originating  in  or 
consigned  from  Taiwan,  and  as  extended  to  certain  refillable  pocket  flint  lighters 
originating  in  the  People's  Republic  of  China  or  originating  in  or  consigned  from 
Taiwan. 

•  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 

Council  Regulation  (EC)  No  1824/2001  imposing  definitive  anti-dumping  duties  on 
imports  of  gas-fuelled,  non-refillable  pocket  flint  lighters  originating  in  the  People's 
Republic of China, as extended to the same lighters originating in or consigned from 
Taiwan,  and  as  extended  to  certain  refillable  pocket  flint  lighters  originating  in  the 
People's Republic of China or originating in or consigned from Taiwan. 

•  Consistency with the 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 

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exhaustive list of conditions that have to be assessed. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

By Council Regulation (EC) No 1824/20011, the Council confirmed the definitive anti-
dumping  duties  imposed  by  Council  Regulation  (EC)  No 1006/95  as  extended  by 
Council Regulation (EC) No 192/1999 ('existing measures')  pursuant  to Article 11(2) 
of the basic Regulation.  

On  16  September  2006,  the  Commission  opened  an  expiry  review  of  the  above 
measures pursuant to Article 11(2) of the basic Regulation.  

The  investigation  concluded  that  there  is  a  likelihood  of  recurrence  of  dumping  and 
injury  should  measures  be  allowed  to  lapse.  It  also  concluded  that  there  are  no 
compelling reasons on grounds of Community interest against the maintenance of the 
existing anti-dumping measures  

It is therefore proposed that the Council adopt the attached proposal for a Regulation. 

•  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 reasons: 

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 L 248, 18.9.2001, p. 1. as last amended by Regulation (EC) No 155/2003 (OJ L 25, 30.01.2003, p. 27-28) 

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

THE COUNCIL OF THE EUROPEAN UNION, 

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 Community2 (‘the basic 
Regulation’), and in particular Articles 9 and 11(2) thereof, 

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

Whereas: 

A. PROCEDURE 

1. Measures in force 

(1) 

(2) 

(3) 

In  1991,  the  Council,  by  Regulation  (EEC)  No  3433/913,  imposed  a  definitive  anti-
dumping duty of 16.9% on imports of gas-fuelled, non-refillable pocket flint lighters 
originating, inter alia, in the People's Republic of China ('PRC'). 

In 1995, by Council Regulation (EC) No 1006/954 the original ad valorem duty was 
replaced by a specific duty of ECU 0.065 per lighter. 

Further to an investigation in accordance with Article 13 of the basic Regulation5 the 
above  measures  were  extended  by  Council  Regulation  (EC)  No  192/19996  to  (1) 
imports  of  gas-fuelled,  non-refillable  pocket  flint  lighters  consigned  from  or 
originating  in  Taiwan  and  (2)  imports  of  certain  refillable  lighters  originating  in  the 

2 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). 

3 OJ L 326; 28.11.1991, p. 1. 
4 OJ L 101, 4.5.1995, p. 38. 
5 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). 
6 OJ L 22, 29.1.1999, p. 1. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

PRC  or  consigned  from  or  originating  in  Taiwan  with  a  free-at-Community  frontier, 
duty unpaid value per piece below EUR 0.15.  

In  2001,  the  Council,  by  Regulation  (EC)  No  1824/20017  confirmed  the  definitive 
anti-dumping duties imposed by Council Regulation (EC) No 1006/95 as extended by 
Council Regulation (EC) No 192/1999 ('existing measures') pursuant to Article 11(2) 
of the basic Regulation. 

2. Request for a review  

Following the publication of a notice of impending expiry8 of the existing measures, 
on  16 June  2006,  the  Commission  received  a  request  to  review  these  measures 
pursuant to Article 11(2) of the basic Regulation. 

This request was lodged by BIC S.A, a Community producer representing more than 
80%  of  the  total  Community  production  of  gas-fuelled,  non-refillable  pocket  flint 
lighters. The request for an expiry review was based on the grounds that the expiry of 
the measures would be likely to result in a continuation or recurrence of dumping and 
injury to the Community industry. 

Having determined, after consulting the Advisory Committee, that sufficient evidence 
existed  for  the  initiation  of  an  expiry  review  pursuant  to  Article 11(2)  of  the  basic 
Regulation,  the  Commission,  by  notice  published  in  the  Official  Journal  of  the 
European Union ('notice of initiation') initiated this review on 16 September 20069. 

3. Investigation  

3.1 Investigation period 

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

3.2 Parties concerned by the investigation 

The Commission officially advised the applicant Community producer, the two other 
Community producers, the exporters/producers in the PRC and the importers known to 
be concerned, as well as the authorities in the PRC and Taiwan of the initiation of the 
expiry  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.  

(10)  The  applicant  Community  producer,  two  other  Community  producers  opposing  the 
maintenance  of  the  anti-dumping  measure  and  an  importers'  association  made  their 

7 OJ L 248, 18.9.2001, p. 1. as last amended by Regulation (EC) No 155/2003 (OJ L 25, 30.01.2003, p. 27-28) 
8 OJ C 321, 16.12.2005, p. 4. 
9 OJ C 223, 16.9.2006, p. 7. 

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views  known.  All  interested  parties  who  so  requested  and  showed  that  there  were 
particular reasons why they should be heard, were granted a hearing. 

(11) 

In the notice of initiation the Commission indicated that sampling might be applied in 
this  investigation  for  exporters/producers  in  the  PRC.  However,  since  none  of  the 
known  exporters/producers  in  the  PRC  made  themselves  known,  it  was  decided  that 
sampling was not required. 

(12)  Questionnaires  were  sent  to  the  applicant  Community  producer,  the  two  other 
Community producers, the 62 known exporters/producers in the PRC and 33 importers 
and the European Lighter Importers' Association ("ELIAS"). In addition, the producer 
in  the  proposed  analogue  country,  Brazil,  as  well  as  8  producers  in  other  possible 
analogue  countries,  were  contacted  and  sent  a  questionnaire.  Replies  were  only 
received from the applicant Community producer and the producer in Brazil, as well 
as  a  company  in  Malaysia,  which  had  been  contacted  as  an  alternative  analogue 
country.  None  of  the  known  producers/exporters  in  the  PRC  replied  to  the 
questionnaire.  Furthermore,  none  of 
the 
the 
questionnaire  stating  that  they  do  not  import  the  product  concerned,  but  only 
electronic (piezo) lighters. 

importers  contacted  replied 

to 

(13)  The  Commission  sought  and  verified  all  the  information  deemed  necessary  for  its 
investigation  and  carried  out  verification  visits  at  the  premises  of  the  following 
companies: 

Community producers: 

•  BIC S.A. HQ – Clichy, France  

•  BIC IBERIA S.A. – Tarragona, Spain 

Producer and related company in the analogue country: 

•  BIC Amazonia S.A., Manaus, Brazil 

•  BIC Brasil S.A., Cajamar, Brazil 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

(14)  The product concerned is the same as in the investigation which led to the imposition 
of  the  existing  measures,  i.e.  gas-fuelled,  non-refillable  pocket  flint  lighters.  As 
described above in recital (3), the product scope was extended in 1999 to include gas 
fuelled, refillable pocket flint lighters incorporating a plastic tank body ('flint lighters' 
or  'the  product  concerned').  The  product  concerned  is  currently  classified  within  CN 
codes ex 9613 10 00 and ex 9613 20 90 (TARIC codes 9613 10 00 11, 9613 10 00 19, 
9613 20 90 21 and 9613 20 90 29). 

(15)  One  of  the  non  complainant  producers  in  the  Community  claimed  that  the  products 
produced  and  sold  in  the  analogue  country  Brazil  were  not  alike  with  the  products 
produced in and exported from China into the Community. It was in particular argued 
that the lighters produced in Brazil were of a higher quality and had a longer lifetime 
than  the  ones  produced  in  China.  Quality  differences  as  such  are,  however,  not 

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decisive  when  determining  whether  products  are  alike  within  the  meaning  of  Article 
1(4) of the basic Regulation. The investigation revealed that the lighters produced in 
China and the ones produced in Brazil had indeed the same basic technical, physical 
and chemical characteristics and end-uses. This claim was therefore rejected. 

(16)  Consequently, as shown in the previous investigations mentioned in recitals (1) to (4), 
and  as  confirmed  by  the  current  investigation,  gas-fuelled,  non-refillable  pocket  flint 
lighters manufactured by Chinese exporting producers and sold in the PRC and on the 
Community  market  and  the  product  manufactured  and  sold  by  the  applicant 
Community producer on the Community market are in all respects identical or share at 
least the same basic physical and technical characteristics and no differences in usage 
exist  among  them.  The  same  is  true  for  those  produced  and  sold  in  Brazil.  These 
products are therefore alike within the meaning of Article 1(4) of the basic Regulation. 

C. LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING  

1. Preliminary remarks  

(17)  As  in  the  previous  review  investigations,  the  Chinese  exporting  producers  did  not 
cooperate.  Therefore  no  reliable  information  on  imports  of  the  product  concerned  to 
the  Community  during  the  RIP  could  be  gathered  directly  from  the  exporting 
producers. Under these circumstances, and in accordance with Article 18 of the basic 
Regulation, the Commission resorted to the use of the facts available, i.e. Eurostat, the 
request for the initiation of the review and the data published by the European Anti-
Fraud  Office  ("OLAF")  on  30  January  2007  (OLAF  /07/01)  regarding  the 
circumvention of the anti-dumping duty in force.  

2. Dumping during the investigation period 

2.1  Analogue country 

(18)  The  existing  measures  provide  for  a  single,  country-wide  duty  on  all  imports  to  the 
Community  of  the  product  concerned  originating  in  the  PRC.  In  accordance  with 
Article 11(9) of the basic Regulation the Commission applied the same methodology 
as in the original investigation. Accordingly, the normal value was determined on the 
basis  of  the  information  obtained  in  a  market  economy  third  country  ('the  analogue 
country').  

(19)  Thailand  was  the  analogue  country  in  the  original  investigation.  However,  in  the 
subsequent reviews, the Philippines was used as the analogue country since the Thai 
producers  refused  to  cooperate  and  since  the  Philippines  was  found  to  be  an 
appropriate choice of analogue country, in view, inter alia, of the size and openness of 
its domestic market.  

(20) 

In  the  notice  of  initiation  of  the  present  investigation  the  Commission  indicated  its 
intention  to  use  Brazil  as  an  appropriate  analogue  country  for  the  purpose  of 
establishing the normal value for the PRC. Brazil was considered appropriate in view 
of  the  size  and  openness  of  its  domestic  market  and  the  fact  that  one  Brazilian 
producer  had  agreed  to  cooperate  fully  in  the  investigation.  Interested  parties  were 
invited to comment on this.  

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(21)  An  importers'  association  opposed  the  choice  of  Brazil  as  analogue  country,  arguing 
that  there  was  only  one  main  producer  in  Brazil  and  that  domestic  prices  were 
extremely  high.  One  of  the  non  complainant  Community  producers  claimed  that  the 
level of competition in Brazil was lower than the one on the Chinese domestic market 
and  therefore  the  markets  were  not  comparable.  However,  while  the  number  of 
producers  in  Brazil  was  lower  than  the  alleged  number  of  producers  in  China,  the 
investigation  confirmed  that  there  were  two  producers  of  the  product  concerned  in 
Brazil as well as imports from the EU and the PRC. Regarding the lighters imported 
from  the  PRC,  invoices  obtained  during  the  on-spot  investigation  in  Brazil  showed 
that these entered the country at very low prices, thus exerting a downward pressure on 
the  prices  charged  on  the  Brazilian  market.  Moreover,  none  of  the  known  producers 
contacted  in  other  possible  analogue  countries,  including  the  Philippines,  agreed  to 
cooperate.  A  company  in  Malaysia  replied  to  the  questionnaire  for  producers  in  the 
analogue  country  but  since  it  appeared  that  this  company  did  not  produce  lighters 
itself, Malaysia could not be considered as an analogue country. 

(22) 

In  view  of  the  foregoing  it  was  concluded  that  Brazil  was  the  most  appropriate  and 
reasonable analogue country in accordance with Article 2(7) of the basic Regulation. 

2.2 Normal value 

(23)  Pursuant  to  Article  2(7)(a)  of  the  basic  Regulation,  normal  value  was  established  on 

the basis of verified information received from the producer in the analogue country.  

(24)  The  Commission  first  established  that  the  total  domestic  sales  of  the  Brazilian 
thus  be  considered 

producer  were  made 
representative within the meaning of Article 2(2) of the basic Regulation. 

in  sufficient  quantities  and  could 

(25) 

It  was  subsequently  examined  whether  each  type  of  the  product  concerned  sold  in 
representative  quantities  on  the  analogue  country's  domestic  market  could  be 
considered as being sold in the ordinary course of trade pursuant to Article 2(4) of the 
basic Regulation. It was found that the sales volume on a per type basis, sold at a net 
sales price equal to or above the cost of production, represented 80% or more of the 
total sales volume and the weighted average price of that type was equal to or above 
the cost of production. Therefore the actual domestic prices, calculated as a weighted 
average  of  the  prices  of  all  domestic  sales  made  during  the  RIP,  irrespective  of 
whether these sales were profitable or not, could be used. 

(26)  Normal value was thus determined, as set out in Article 2(1) of the basic Regulation, 
on the basis of prices paid or payable, in the ordinary course of trade, by independent 
customers on the domestic market of the analogue country. 

2.3 Export price 

(27)  Since  none  of  the  Chinese  producers  cooperated,  the  export  price  of  the  product 
concerned  was  calculated  on  the  basis  of  facts  available  in  accordance  with  Article 
18(1) of the basic Regulation, in this case Eurostat data.  

2.4 Comparison 

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(28) 

In  order  to  ensure  a  fair  comparison  of  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. 
Appropriate adjustments concerning transport, insurance, and credit costs were granted 
in  all  cases  where  they  were  found  to  be  reasonable,  accurate  and  supported  by 
verified evidence.  

(29)  One  of  the  non  complainant  Community  producers  argued  that  the  lighters  in  Brazil 
were produced at higher costs due to higher quality standards, but did not submit any 
evidence  to  quantify  and  support  this  claim.  Due  to  the  non  co-operation  of  the 
Chinese  exporting  producers,  the  investigation  did  not  reveal  any  indications  which 
would have allowed adjusting the normal value based on alleged quality differences. 
This claim was therefore rejected. 

2.5 Dumping margin 

(30) 

In accordance with Article 2(11) of the basic Regulation the weighted average normal 
value  established  for  the  analogue  country was  compared  with  the  weighted  average 
export  price  on  an  ex-works  basis.  This  comparison  showed  the  existence  of 
significant dumping, the dumping margin amounting to more than 150%.  

3. Development of imports should measures be allowed to lapse 

3.1 Preliminary remarks  

(31) 

(32) 

It  is  recalled  that  measures  have  been  in  force  since  1991.  However,  there  is  a  long 
record  of  circumvention  of  the  measures.  In  1999  two  kinds  of  circumvention 
practices were found: transhipment via Taiwan and the insertion of fake valves into the 
lighters to make them appear to be refillable and thus avoid the payment of the anti-
dumping  duty.  Consequently,  as  stated  in  recital  (3),  the  measures  were  extended  in 
1999 to counteract these practices. In 2001 an expiry review of the measures in force 
showed  that  they  should  be  extended  for  a  further  five  years  given  the  likelihood  of 
continuation and recurrence of dumping and injury.  

3.2  Current  imports  and  recent  findings  regarding  circumvention  of  the 

measures 

Import  volumes  of  the  product  concerned  from  the  PRC  and  Taiwan  in  the  RIP 
totalled 11.7 million pieces according to Eurostat. In reality, however, the imports into 
the Community are much higher since, as proven recently by OLAF, there is massive 
circumvention  of  Chinese  lighters  via  Malaysia  and  Indonesia.  According  to  data 
published by OLAF in January 2007 over 300 million flint lighters of Chinese origin 
were transhipped via Malaysia alone during the last four years. The sole purpose of the 
transhipments was to disguise the true Chinese origin of the goods and thus avoid the 
payment of the anti-dumping duties. 

(33)  The  OLAF  investigation  also  found  that  a  large  amount  of  lighters  imported  from 
Indonesia  did  not,  in  fact,  originate  in  that  country.  The  investigation  into  their  true 
origin is continuing. The applicant is planning to lodge a circumvention case against 6 
countries in the Far East.  

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(34) 

In  addition  to  the  circumvention  by  transhipment,  as  evidenced  by  OLAF,  the 
applicant,  in  its  review  request,  provided  evidence  of  misdeclaration  of  flint  lighters 
(product concerned) as so called electronic (piezo) lighters (not product concerned) in 
order to avoid the payment of the anti-dumping duty.  

(35)  The  importers'  association  ELIAS  and  one  importer  claimed  that  the  Commission  is 
drawing definitive conclusions from OLAF's ongoing investigation and stated that, it 
was not in the position to exercise validly their rights of defence and submit comments 
on the conclusions that the Commission has drawn from these confidential findings. 

(36) 

In  this  respect,  it  should  be  noted  that  the  Commission  used  only  published 
information  to  which  all  interested  parties  have  access,  which  results  were  self-
explanatory and could not be ignored in the context of this proceeding. 

3.3 Evolution of production and capacity utilisation in the PRC 

(37) 

In the  absence of cooperation by the Chinese exporting producers in the present and 
past review investigations, no verifiable data is available on their capacity and capacity 
utilization.  According  to  the  applicant's  estimate  the  total  production  capacity  in  the 
PRC  amounts  to  around  3.9  billion  lighters  per  year,  the  majority  of  which  are 
probably flint lighters. This estimate is in line with the data given by Chinese lighter 
manufacturers  on  their  websites.  For  example,  one  single  Chinese  producer,  Zhuoye 
Lighter  Manufacturing  Co  Ltd,  states  on  its  homepage  that  the  output  of  its  three 
factories amounts to 700 million lighters per year. The producer in question does not, 
however,  specify  the  breakdown  between  the  product  concerned  and  other  types  of 
lighters.  According  to  the  applicant,  however,  production  can  easily  be  switched 
between flint and electronic (piezo) lighters.  

(38)  On the basis of the above it may be concluded that, in the light of the huge capacity 
available  in  the  PRC  and  the  apparent  flexibility  of  the  production  process,  which 
makes it easy to switch between different types of lighters, there is a strong likelihood 
of  increased  imports  into  the  Community  should  measures  be  allowed  to  lapse.  The 
proven circumvention practices further demonstrate that the Chinese exporters have a 
strong interest in the Community market.  

3.4 Chinese exports to other third countries 

(39)  As  none  of  the  Chinese  exporting  producers  cooperated,  there  is  no  verified 
information  available  regarding  exports  of  flint  lighters  to  other  third  countries. 
Moreover since third-country statistics available do not distinguish between flint and 
electronic  (piezo)  lighters  it  is  not  possible  to  make  any  comparison  between  export 
prices to the Community and export prices to other third countries.  

(40)  The  Community  industry  has  demonstrated  that  it  is  successfully  competing  with 
Chinese  imports  on  the  US  market  where  the  Chinese  have  lost  market  share.  This 
suggests that there would be a clear incentive for the Chinese producers to shift their 
exports to the Community market should the measures be allowed to lapse. 

(41)  The  importers  rejected  above  conclusions  claiming  that  the  performance  of  the 
Community industry in the US market may not be due to its competitiveness but to a 
business decision to transfer profits from the Community to the USA. The importers 

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further claimed that on the basis of the higher profit margins in the USA the Chinese 
exporting producers would not have any incentive to shift exports to the Community 
market.  

(42)  The  importers  did  not  submit  any  evidence  or  any  further  reasoning  neither  with 
regard to the alleged profit transfers of the Community industry to the USA, nor the 
allegedly higher profit margins of the Chinese exporting producers in the US market. 
These  claims  were  also  not  confirmed  by  the  verified  information  available  in  the 
investigation file. They were therefore purely speculative and rejected. 

(43) 

It should be noted that the level of competition on the US market cannot be regarded 
as the unique reason to conclude that the Community industry should be achieving less 
profit. Other elements; such as customer expectations and price levels should also be 
taken into account. 

(44)  Additionally, the importers claimed that the Community and US markets are similar in 
the sense that the same safety requirements have to be fulfilled on both markets; it was 
found  that  a  more  stringent  requirements  with  regard  to  child  resistant  lighters  have 
been  in  force  in  the  US  since  1994;  while  such  norms  were  only  introduced  in  the 
Community in March 2007.  

4. Conclusion 

(45)  The investigation showed that, whilst the import volumes of the product concerned in 
the  RIP  were  relatively  low,  the  level  of  dumping  found  for  these  imports  was 
significant. 

(46) 

In view of the huge capacity available in the PRC and the apparent attractiveness of 
the Community market to the Chinese exporting producers, as proven by the extensive 
circumvention practices, it may be concluded that there is a strong likelihood that the 
volumes of dumped imports into the Community would reach substantial levels should 
the existing measures be allowed to lapse.  

D. DEFINITION OF THE COMMUNITY INDUSTRY 

(47)  Within the Community, the like product is manufactured by 3 producers whose output 
constitutes the total Community production of the like product within the meaning of 
Article 4(1) of the basic Regulation.  

(48) 

It should be noted that as compared to the original investigation contrary to Swedish 
Match  and  Flamagas,  the  complainant's  production  is  still  mainly  located  in  the  EU 
(France and Spain). 

(49)  The applicant Community producer, BIC SA represents about 80% of the Community 
production of non-refillable lighters and therefore constitutes the Community industry 
within the meaning of Article 4(1) and Article 5(4) of the basic Regulation. The other 
Community  producers  were  not  considered  to  form  part  of  the  Community  industry 
since they did not fully cooperate but only submitted certain information in relation to 
the impact of the measures on their activities. 

E. SITUATION ON THE COMMUNITY MARKET 

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1. Preliminary remarks 

(50)  For  the  reasons  explained  in  recitals  (16)  above,  the  analysis  with  regard  to  the 
situation  on  the  Community  market  was  based  on  collected  data  relating  to  gas-
fuelled,  non-refillable  pocket  flint  lighters  and  gas-fuelled,  refillable  pocket  flint 
lighters ('flint lighters' or 'the product concerned') 

(51)  Further,  as  mentioned  above,  it  was  not  possible  to  obtain  data  with  regard  to  the 
activities  of  two  Community  producers  which  have  manufacturing  facilities  in  the 
Community  market.  Consequently,  the  Commission  made  use  of  facts  available,  in 
accordance  with  Article  18  of  the  basic  Regulation,  whenever  more  precise 
information was not available from other interested parties.  

(52)  Given  the  fact  that  data  regarding  sales  and  production  was  available  from  only  one 
interested  party,  the  applicant,  it  is  considered  appropriate  not  to  disclose  absolute 
figures.  They  have  therefore  been  replaced  by  the  symbol  "-"  and  indexes  were 
provided. 

2. Consumption in the Community market 

(53)  Apparent  Community  consumption  of  flint  lighters  was  assessed  on  the  basis  of  the 
volume  of  sales  in  the  Community  as  provided  by  the  Community  industry,  and 
imports  from  non-EU  countries  as  reported  by  EUROSTAT.  These  figures  do  not 
include the sales of the non-cooperating EC producers. 

Table 1 - Community consumption of flint lighters (000) 

Units 

Index 

Y/Y trend 

2003

2004

2005

RIP 

529.550 

575.394 

661.378 

727.715 

100

109
+9% 

125
+15% 

137 
+10% 

Source: Verified questionnaire replies and EU Imports (Comext TARIC data base) 

(54)  Apparent Community consumption increased by 37% between 2003 and the RIP.  

3. Volume, market share and prices of imports from the PRC and Taiwan. 

3.1 Import volume and market share  

(55)  During  the  period  considered,  the  import  volume  of  flint  lighters  from  China  and 
Taiwan  although  remaining  at  low  levels  increased  by  136%  between  2003  and  the 
RIP and reached more than 11 million units during the IP. This translated in a market 
share of 1,6%. Market shares increased from 0.9% in 2003 to 1.6% during the RIP.  

Table 2 - Imports of flint lighters from China and Taiwan and market share (000) 

Import volume 

Index 

Market share 

2003

4.949 

100

0.9%

2004

7.902 

160

1.4%

2005

15.452 

312

2.3%

RIP 

11.657 

236 

1.6% 

EN 

13 

   EN 

 
 
 
 
Unit price 

Index 

0,22 

100 

0,14 

66 

0,13 

60 

0,14 

65 

Source: Verified questionnaire replies and EU Imports (Comext TARIC data base) 

4. Imports from other countries 

(56) 

Imports from other countries went up from around 276 million pieces to around 487 
million pieces. It should be noted however that there are indication that a substantial 
part of these imports, in fact, originate in the PRC and Taiwan. 

Table 3 - Imports of flint lighters from other countries and market share (000) 

Imports volume 
from Malaysia 

Index 

Market Share 

Unit price 

Index 

Imports volume 
from Indonesia 

Index 

Market Share 

Unit price 

Index 

Imports volume 
from Vietnam 

Index 

Market Share 

Unit price 

Index 

Imports volume 
from Rest of the 
World 

Index 

Market Share 

Unit price 

2003
60.596

2004
57.717

2005 
65.729 

RIP
47.162 

100
11,4%

0,04

100

95
10,0%

0,04

95

108
9,9% 

0,04 

93 

78
6,5%

0,04

89 

51.968

56.907

68.524 

72.012 

100

9,8%

0,05

100

110

9,9%

0,04

76

132 

10,4% 

0,04 

75 

139

9,9%

0,04 

81

106.117

156.938

191.498 

237.529 

100

148

180 

224 

20,0%

27,3%

29,0% 

32,6% 

0,05

100

0,04

92

0,04 

87 

0,04

91 

53.294

56.377

65.025 

119.268 

100

10,1%

0,08

106

9,8%

0,09

122 

9,8% 

0,07 

224 

16,4% 

0,07 

EN 

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   EN 

 
 
 
 
Index 

100

101

81 

83 

5. Price evolution and price behaviour of the imports of the product concerned 

(57)  As  mentioned  above  in  recital  (12),  in  the  absence  of  cooperation  from  the  Chinese 
exporting producers, no verified information was available with regard to price levels 
of imports of flint lighters. Evidence of circumvention via Indonesia and Malaysia was 
recently  found  by  OLAF  and  there  is  some  evidence  of  circumvention  via  several 
other  Asian  countries  (Laos,  Thailand,  Vietnam  and  the  Philippines).  It  seems  that 
assembly factories enabling the circumvention of measures can be set up in East Asia 
within a few weeks. The successful circumvention of measures may explain why none 
of the Chinese exporters co-operated in the present proceeding. 

(58)  Thus, no definitive conclusion could be drawn with regard to the price evolution and 

price behaviour of the imports of the product concerned. 

6. Economic situation of the Community industry  

6.1 General Comments 

(59)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  the  Commission  examined  all 
relevant  economic  factors  and  indicators  having  a  bearing  on  the  state  of  the 
Community industry.  

6.2 Production volume, production capacity and capacity utilisation 

(60)  Total  production  of  flint  lighters  by  the  Community  industry  increased  steadily  over 

the period considered, i.e., by 22%.  

Table 4 – Production volume 

Production 

Index 

Y/Y trend 

Source: Verified questionnaire reply 

2003

- 

100

2004

- 

109

+9%

2005 

- 

120 

+10% 

RIP 

- 

122 

+1% 

(61)  As  production  increased  at  a  higher  rate  than  the  increase  in  production  capacity, 
capacity  utilisation  also  increased  over  the  period  considered.  Overall,  the  capacity 
utilisation rate has followed similar trends as those of production, increasing between 
2003 and the RIP by 3 percentage points. 

Table 5 – Production capacity and capacity utilization 

Production capacity 

Index 

Y/Y trend 

2003

- 

109

+9%%

2004 

- 

114 

+4% 

RIP 

- 

118 

+4% 

2003

- 

100

15 

   EN 

EN 

 
 
 
 
Capacity utilization 
Index 

76%

100

75%

100

80% 

105 

78% 

103 

Source: Verified questionnaire reply 

6.3 Stocks 

(62)  Stocks remained stable during the period considered. The peak observed in the RIP is 
due  to  an  intentional  stock  piling  in  view  of  the  cessation  of  production  activities 
during  the  summer  period  and  should  normalise  after  that  period.  This  factor  was 
therefore not considered meaningful in the determination of the injury picture.  

Table 6 – Stock volume 

Stock 

Index 

Y/Y trend 

2003

- 

100

2004

- 

105

+5%

2005 

- 

95 

-10% 

RIP 

- 

225 

137% 

Source: Verified questionnaire reply 

6.4 Sales volume, prices and market share 

(63)  Sales  volumes  by  the  Community  industry  on  the  Community  market  decreased 
between  2003  and  the  RIP  by  5%,  without,  however,  matching  the  expansion  of  the 
Community  consumption,  which  substantially  increased  (by  37%)  during  the  same 
period.  This  increase  in  consumption  means  that  the  overall  decrease  of  the 
Community industry's market share is of more than 14 percentage points ('pp') over the 
period considered.  

(64)  As far as average unit sales prices are concerned, they have slightly decreased between 

2003 and the RIP with a decrease of 2% between 2005 and the RIP.  

Table 7 – Sales volume, prices and market share 

Sales volume (units) 

Index 

Y/Y trend 

Avg. prices (EUR/unit) 

Index 

Y/Y trend 

Market share 

Y/Y trend 

2003

2004

- 

100

- 

100

- 

95

-5%

- 

98

-1%

2005 

- 

101 

+7% 

- 

95 

-4% 

47,7% 

41,6% 

38,6% 

RIP 

- 

95 

-6% 

- 

97 

+3% 

33% 

-6.1pp

-3pp 

-5.6pp 

Source: Verified questionnaire reply 

6.5 Employment, productivity and wages 

EN 

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(65)  Over  the  period  considered,  employment  increased  by  5%,  i.e.  at  a  lower  pace  than 
production in volume, which resulted in a significant increase of productivity (15%). It 
should  be  noted  that  the  increase  in  employment  was  the  result  of  the  hiring  of  new 
staff to be trained, in order to replace retiring staff.  

(66) 

Indeed, over the period considered the Community industry's labour costs (+7%) only 
increased slightly. As a consequence, the proportion of labour costs in the total cost of 
production remained stable. 

Table 8 – Employment, productivity and wages 

Employment 

Index 

Y/Y trend 

Productivity (units per employee)  

Index 

Y/Y trend 

Labour costs (000 EUR) 

Index 

Y/Y trend 

2003

816 

100

- 

100

- 

100

2004

856 

105

+5%

- 

104
+4% 

- 

99

-1%

2005 

856 

105 

0% 

- 

114 
+10% 

- 

104 

+5% 

RIP

859

106

+0%

-

115
+1%

-

107

+2%

Source: Verified questionnaire reply 

6.6 Profits 

(67)  Profitability fell by 4.6 percentage points.  

Table 9 – Profitability 

Profitability (%) 

Y/Y trend 

Source: Verified questionnaire reply 

6.7 Investments 

2003

- 

2004

- 

2005 

- 

RIP 

- 

-0.2pp

-2.0pp 

-2.4pp 

(68) 

Investments increased significantly between  2003  and  the  RIP  i.e.  by  60%,  and  then 
substantially  increased  in  2005,  by  around  65%,  which  was  due  to  the  Community 
industry's  developing  new  production  units.  These  investments  related  mainly  to  the 
reorganisation  of  the  production  from  2005  in  order  to  restart  production  capacities. 
This increase, which was done with a limited increase in the workforce, has allowed 
the company to increase its productivity in terms of production per employee.  

Table 10 – Investments  

2003

2004

2005 

IP 

EN 

17 

   EN 

 
 
 
 
Investments 

Index 

Y/Y trend 

- 

100

- 

111

11%

- 

165 

49% 

- 

160 

-3% 

Source: Verified questionnaire reply 

6.8 Ability to raise capital 

(69)  The  Community  industry  was  not  found  to  be  experiencing  difficulties  in  raising 

capital during the period considered.  

6.9 Cash flow 

(70)  Cash  flow  decreased  significantly  over  the  period  considered  (-50%).  This  negative 
trend indicates that the industry is under pressure. This development is in line with the 
development  of  the  overall  profitability  during  the  period  considered.  It  should  be 
noted that during the RIP, cash flow represented only 1% of the total sales made in the 
Community which cannot be considered as excessive. 

Table 11 – Cash flow 

Cash flow 

Index 

Y/Y trend 

Source: Verified questionnaire reply 

6.10 Growth 

2003

2004

2005 

RIP 

- 

100

- 

74

-26%

- 

72 

-4% 

- 

50 

-30% 

(71)  Between 2003 and the RIP, the Community consumption increased by 37%, while the 
volume  of  sales  of  the  Community  industry  on  the  Community  market  decreased  by 
7%.  The  Community  industry  lost  around  14.7  percentage  points  of  market  share, 
whereas imports originating in the Far East increased theirs.  

(72) 

In  recent  years,  although  it  is  true  that  the  market  share  between  flint and  electronic 
(piezo)  lighters  has  been  characterized  by  a  slow  shift  from  Flint  to  Electronic,  the 
investigation  has  shown  that  market  for  flint  lighters  is  growing.  The  investigation 
revealed  that  flint  lighters  still  represents  about  70%  of  the  Community  market  and 
continues  to  grow,  given  the  overall  increase  of  the  Community  consumption. 
However,  the  Community  industry  was  not  able  to  benefit  from  the  growth  in  the 
market, as revealed by its loss of market share. 

6.11 Magnitude of the dumping margin 

(73)  The analysis with regard to the magnitude of dumping must take into account the fact 
that  there  are  measures  in  force  in  order  to  eliminate  injurious  dumping.  As 
determined above in recital (32), the information available indicates that the Chinese 
exporting  producers  continue  to  sell  to  the  Community  at  dumped  prices.  In 
accordance  with  Article  2(11)  of  the  basic  Regulation,  the  weighted  average  normal 
value  established  for  the  analogue  country was  compared  with  the  weighted  average 

EN 

18 

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export  price.  This  comparison  showed  the  existence  of  significant  dumping,  the 
dumping margin amounting to more than 150%.  

(74) 

In  light  of  the  above,  i.e.  the  high  dumping  margin,  the  huge  capacity  available  in 
China and the circumvention practices, as evidenced by OLAF and the complainant, it 
can be concluded that dumped imports from China would with all likelihood increase 
considerably should measures be allowed to lapse 

6.12 Recovery from the effects of past dumping  

(75)  The  situation  of  the  Community  industry  did  not  improve  during  the  period 
considered,  since  the  extension  of  measures  in  2001  through  the  previous  expiry 
review.  While  noting  that  the  Community  Industry  was  profitable  throughout  the 
period  considered,  profits  fell  continuously  during  the  period.  Likewise,  while  the 
industry  maintained  a  rather  high  level  of  market  share,  this  was  continuously 
declining during the period considered. However, pressure from the Chinese imports 
remains  (due  to  circumvention)  and  the  indicators  set  out  above  also  show  that  the 
Community industry is still fragile and vulnerable.  

6.13 Export activity of the Community industry 

(76)  The  investigation  showed  that  the  export  activity  of  the  Community  industry 

developed as follows: 

Table 12 – Community industry exports 

Volume (unit) 

Index 
Y/Y trend 

Value (000' EUR) 

Index 
Y/Y trend 

Avg. price (EUR/unit) 

Index 

Y/Y trend 

2003

- 

100

- 

100

- 

100

2004

- 

113

+13% 

- 

107

+7% 

- 

95

-5% 

2005 

- 

129 

+14% 

- 

134 

+25% 

- 

104 

+9% 

RIP

-

135

+5%

-

147

+10%

-

109

+5%

Source: Verified questionnaire reply 

(77)  Quantities  exported  by  the  Community  industry  grew  significantly  from  2003  to  the 
RIP. This overall positive trend was concomitant to a slight increase in average prices, 
explained by a better competitive position in third country markets such as the US.  

7. Conclusion on the situation of the Community industry 

(78)  Sales volume decreased by 5% between 2003 and the RIP which translated in a loss of 
market share from 47,7%% in 2003 to 33% in the RIP. Unit prices decreased slightly 
from  2003  to  the  RIP,  i.e.  by  3%,  although  raw  material  prices  increased.  The 

EN 

19 

   EN 

 
 
 
 
 
Community  industry's  profitability  fell  during  the  RIP.  Production,  production 
capacity  and  capacity utilisation rate increased which is, however, mainly due to the 
increase  in  export  activities  of  the  Community  industry.  Historically,  the  sector  has 
always  shown  very  high  profitability  level  which  is  needed  to  recoup  investments 
necessary  to  adapt  the  production  to  new  security  requirements  and  improve  the 
overall  competitiveness  of  the  company.  It  is  to  be  noted  that  the  injury  margin 
calculated  for  the  RIP  was  over  60%.  Imports  from  the  PRC  and  Taiwan  were 
undercutting the Community Industry prices by an average of 39%.  

(79)  Annual  investments  in  the  like  product  developed  positively  during  the  period 
considered  i.e.  increased  by  60%.  These  investments  related  mainly  to  the 
reorganization  of  the  production  from  2005  in  order  to  restart  production  capacities. 
Employment increased by 5%. Cash flow followed the same trend as profit during the 
RIP and decreased by 50%. 

(80)  Recitals  (69)  and  (70)  above  show  that  the  main  injury  factors  (sales  prices,  sales 
volume,  market  share  and  profitability)  decreased  during  the  period  considered  and 
that  the  Community  industry  still  suffered  injury  despite  the  measures  in  force.  The 
injury  is  mainly  translated  in  a  loss  of  market  share  despite  increasing  consumption, 
but also in a decrease in profitability due to the price pressure from imports from the 
PRC and Taiwan. Thus, the increase of raw material costs could not be translated in 
higher selling prices.  

(81)  Historically, the sector has always shown very high profitability levels. In the original 
investigation,  for  the  purpose  of  establishing  the  injury  elimination  level,  it  was 
considered that any measure should allow the Community industry to cover its costs of 
production  and  to  achieve  a  reasonable  profit,  namely  15  %  on  sales  turnover.  This 
percentage is needed to recoup investments necessary to adapt the production to new 
security requirements and improve the overall competitiveness of the company. 

(82)  The somewhat negative situation of the Community Industry, despite the measures in 
place, can be explained by the high degree of circumvention which characterizes the 
sector, as found by OLAF. 

(83)  The  importers  contested  the  findings  of  the  Commission  concerning  the  economic 
situation of the Community industry. The figures submitted to substantiate their claim 
did however not relate to the situation of the Community industry in Europe as far as 
gas-fuelled,  non-refillable  pocket  flint  lighters  are  concerned  but  to  the  worldwide 
activities  of  the  Community  producer's  entire  lighter  division.  These  data  were 
irrelevant in the determination of the Community industry's state and the argument had 
therefore to be rejected. 

(84)  The importers claimed that the Community producer had shifted a significant part of 
its  Community  production  from  flint  to  piezo  lighters.  As  a  consequence,  its  market 
share for flint lighters showed a decreasing trend. The investigation revealed that this 
statement  is  incorrect.  Indeed,  the  overall  Community  lighter  market  has  been 
increasing over the last years and the share of  flint  lighters  in  the  lighter  market  has 
been slightly decreasing but remained at a level of 70% in 2006. In this perspective, it 
should  be  reminded  that  the  flint  market  consumption  increased  over  the  period 
considered  and  that  the  share  of  flint  lighters  sold  by  the  Community  industry 

EN 

20 

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decreased  over  the  period  considered.  The  arguments  put  forward  are  therefore 
rejected. 

(85)  The  importers  argued  that  the  Community  producer  holds  a  monopoly  in  the 
Community and anti-dumping measures would enforce its position even further. This 
statement is incorrect as significant import volumes from third countries are entering 
the Community market. Furthermore, the complainant Community producer was also 
competing  with  other  producers  in  the  Community.  Additionally,  it  should  be  noted 
that  no  evidence  was  submitted  or  was  otherwise  available  indicating  that  the 
Community industry abused any alleged dominant position.  

(86)  The overall positive economic situation of the complainant is partially explained by its 
ability  to  sell  the  product  concerned,  produced  in  the  US  and  in  the  EU,  at  a  higher 
unit price in the US market as the higher safety standard and the presence of a child 
proof device (the "guard") on the product concerned allows the complainant to sell the 
product concerned at a higher price. Finally, it should be noted that flint lighters are 
massively represented in the US market and the relative growth of the lighter market, 
despite  a  constant  reduction  in  the  number  of  smokers,  shows  that  the  Community 
Industry has been able to generate growth margins in a very competitive market.  

F. LIKELIHOOD OF RECURRENCE OF INJURY  

(87)  Although  continuation  of  material  injury,  caused  by  fraudulent  declaration  of  the 
product concerned and by circumvention of the product concerned originating in the 
PRC via other Asian countries, is supported by the findings of OLAF (see recital (33)), 
the analysis focused on the likelihood of recurrence of injury. In this respect two main 
parameters  were  analysed:  (1)  possible  shift  of  export  volumes  of  the  product 
concerned  from  the  US  in  the  Community  market,  (2)  the  effects  of  those  projected 
volumes and prices from the country concerned on the Community industry. 

1. Shift of export volumes from the US to the Community market  

(88)  The decrease in market share of the Chinese lighters in the US shows that important 
volumes  could  be  transferred  to  the  EU  market  at  a  very  low  price.  Moreover,  as 
mentioned  above  in  recital  (37)  there  are  large  production  capacities  of  the  product 
concerned available in the PRC which could be shifted to the EU. It is very likely that, 
should  measures  be  repealed,  imports  originating  in  the  PRC  would  probably  be 
favoured with the perspective of higher price levels than in developing countries.  

2. Effects of these imports in the Community 

(89)  Should measures be allowed to lapse, it is clear that, given the lower price and existing 
capacities  of  Chinese  exporting  producers,  most  injury  indicators  (mainly  sales 
volume,  cost  of  production  and  profitability)  of  the  Community  Industry  would  go 
down significantly. 

3.  Conclusion on the likelihood of recurrence of injury 

(90) 

In view of the above and given that the injury margin calculated for the RIP was over 
60%  and  that  imports  from  the  PRC  and  Taiwan  were  undercutting  the  Community 
Industry prices by an average  of 39% it is concluded that the repeal of the measures 

EN 

21 

   EN 

 
would  in  all  likelihood  result  in  the  recurrence  of  material  injury  to  the  Community 
industry. 

(91)  One  of  the  non  complainant  Community  producers  contested  above  conclusions  by 
alleging  that  since  low  priced  lighters  are  imported  from  various  other  sources,  the 
repeal of the current measures would not have any effect on the actual situation of the 
Community  industry.  It  was  argued  that  if  any  injury  at  all,  it  is  already  existent 
caused by the imports  from  these  other sources. However, this Community producer 
did  not  contest  the  availability  of  significant  spare  capacities  in  China  and  the 
incentive of the Chinese exporting producers to shift their exports to the Community 
market.  Likewise,  it  did  not  submit  any  information  or  evidence  showing  a  link 
between  the  imports  of  lighters  from  other  third  countries  and  the  impact  on  the 
Community  industry's  financial  situation.  None  of  the  arguments  brought  forward 
could  therefore  devaluate  the  conclusions  as  outlined  above  in  recitals  (87)  to  (90). 
This claim was therefore rejected. 

G. COMMUNITY INTEREST 

1. Introduction 

(92) 

In  accordance  with  Article  21  of  the  basic  Regulation  it  was  examined  whether  a 
prolongation  of  the  existing  anti-dumping  measures  would  be  against  the  interest  of 
the  Community  as  a  whole.  The  determination  of  Community  interest  was  based  on 
the  consideration  of  all  the  various  interests  involved,  i.e.  those  of  the  Community 
industry  and  other  Community  producers  and  the  importers  of  the  product  under 
consideration. 

(93) 

It should be recalled that, in the previous investigations, the adoption of measures and 
their subsequent extension was consistently found not to be against the interest of the 
Community. 

(94)  On  this  basis  it  was  examined  whether,  despite  the  conclusion  that  there  exists  a 
likelihood  of  recurrence  of  dumping  and  recurrence  of  injury,  there  are  compelling 
reasons which would lead to the conclusion that it is not in the Community interest to 
maintain measures in this particular case. 

2. Interests of the Community industry 

(95) 

If  the  anti-dumping  measures  were  repealed,  dumped  and  low-priced  imports  on  the 
Community  market  would  massively  increase  and  would  accelerate  the  deterioration 
of the situation of the Community Industry. 

(96)  The Community Industry is structurally viable, as shown by its positive result in non-
EU markets, such as the US. It has continuously made investments, which have been 
possible thanks to its high profitability. However, it can be concluded that, without the 
continuation of anti-dumping measures, its situation will most likely deteriorate. 

3. Interests of the other Community producers 

(97)  One  of  the  Community  producers  who  did  not  submit  a  questionnaire  reply  claimed 
that  the  anti-dumping  measures  currently  in  force  are  detrimental  to  the  European 
consumer. In particular, this producer claimed that price levels in the Community are 

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higher in comparison to other third markets due to the existing measures. Moreover, 
this producer, who has relocated part of its production to the PRC, claimed that since 
the  existing  measures  are  also  applicable  to  its  exports  of  the  product  concerned 
manufactured  in  China  to  the  Community,  these  measures  would  be  damaging  the 
interests of this company and by definition would therefore be against the Community 
interest.  

(98)  This producer also argued that, since the Community industry had not recovered, the 
existing measures were inefficient and should not be renewed. Finally, it was claimed 
that any injury was due the fact that the Community industry did not adapt to the new 
global market.  

(99)  As regards the alleged negative impact of the measures for consumers, the Community 

producer concerned did not submit any evidence supporting this claim.  

(100)  This  producer  claimed  that  the  anti-dumping  measures  constitute  an  obstacle  to  the 
development of its activities in China and have a negative impact on its expansion in 
the  Far  East,  as  well  as  a  knock-on  effect  on  its  European  production  sites.  This 
producer  argued  that  the  existing  measure  was  negatively  impacting  on  its  overall 
profitability.  However,  the  company  indicated  that  it  had  recently  increased  its 
production  in  its  EU  facilities  and  continued  to  seek  synergies  with  its  production 
facilities in the Far East in order to broaden its product scope. Therefore, the alleged 
negative  impact  of  the  measures  on  its  production  facilities  in  the  EU  could  not  be 
verified.  

(101)  The  Community  producer  in  question  denied  that  it  relocated  its  production  and 
claimed  instead  that  it  simply  built  additional  production  lines  in  China  producing 
different product types than in the Community, thus enlarging its product range. This 
allegedly  favoured  the  production  in  the  Community  which  increased.  As  already 
mentioned  this  producer  did  not  submit  any  questionnaire  reply  and  did  thus  not 
sufficiently co-operate in the present proceeding. None of the information submitted, 
partly  outside  the  requested  deadlines,  could  therefore  be  verified.  Furthermore,  the 
producer  did  not  explain  or  show  any  link  between  the  built-up  of  the  production  in 
China and the increase in production in the Community as claimed. No such link was 
apparent on the basis of the information included in the file. It could also not explain 
how  these  facts  would  have  an  impact  on  the  conclusions  outlined  in  recital  (100) 
above or devaluate these conclusions. This argument had therefore to be rejected. 

(102)  Likewise,  this  company's  imports  should  not  be  allowed  to  benefit  from  dumping  at 
the  expense  of  the  Community  industry.  In  any  case,  it  should  be  noted  that  the 
remaining  production  site  of  this  producer  in  the  Community  only  produces  the 
product  concerned.  New  smaller  flint  lighters,  which  are  also  subject  to  the  existing 
measure, are produced in China and India.  

(103)  With regard to the interests of the other Community producers, both came forward and 
objected  to  the  existing  measures  and  their  continuation.  However,  they  could  not 
substantiate  their  objections  with  any  evidence  of  the  measures  having  a  detrimental 
effect on them.  

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(104)  On the basis of the above, it was concluded that the measures in force would not have 
a  significant,  negative  impact  on  the  other  Community  producers  and  would  not 
significantly adversely affect their financial interests.  

4. Interests of importers and traders 

(105)  On behalf of its members, an importers association (the European Lighters Importers' 
Association ("ELIAS")) and Polyconcept,  another importer opposed the maintenance 
of the existing measures. 

(106)  It should be noted that none of the individual importers filled out a questionnaire reply 
on  the  basis  that  they  did  not  import  the  product  concerned.  Therefore  there  was  no 
evidence available to calculate the precise impact of the measures on the importers. 

(107)  ELIAS  and  Polyconcept  gave  some  reasons  as  to  why  existing  measures  should  be 
lapsed. As regard to their comments regarding the absence of injury and the economic 
performance of the applicant, it has been concluded that, without the continuation of 
anti-dumping measures, its situation will most likely deteriorate.  

(108)  ELIAS  and  Polyconcept  argued  that  EU  market  demand  has  moved  from  flint  to 
electronic (piezo) lighters and will continue to do so in the future. Although there is a 
growing trend amongst the consumers to use electronic (piezo) lighters, flint lighters 
still represent about 70% of the market. The consumption of flint lighters has indeed 
been  increasing  (as  mentioned  in  recital  (53)  above,  which  shows  the  growth  in  the 
market, whereas the Community industry could not benefit from this growth, since it 
has not only lost sales, but also market share in the flint lighter market.  

(109)  ELIAS and Polyconcept claimed that one of the reasons of alleged weak performance 
was the failure by the applicant to recognise changes in EU market demand. However, 
the  Community  industry  is  already  producing  electronic  (piezo)  lighters  and  is 
therefore in the position to meet any new demand for electronic (piezo) lighters. 

(110)  Likewise, the reduction in smoking is also a trend in the US, whereas the Community 
industry  has  managed  to  increase  its  market  share  on  what  can  be  considered  as  a 
highly  competitive  market  given  the  presence  of  many  other  producers,  whether 
originating  in  the  Far  East  or  the  EU.  As  far  as  production  costs  are  concerned,  the 
example of the US shows that the Community industry is able to compete with other 
Community producers having relocated their activities in Asian countries.  

5. Interest of consumers 

(111)  Consumers  or  consumer  organisation  did  not  come  forward  during  the  present 

investigation.  

(112)  However,  it  was  considered  that  the  impact  of  the  measures,  for  the  reasons  set  out 

above, would not have a significant impact on the selling price to the final customer. 

6. Conclusion on Community interest 

(113)  Based on the above it is concluded that there are no compelling reasons on grounds of 

Community interest against the maintenance of the existing anti-dumping measures.  

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H. ANTI-DUMPING MEASURES 

(114)  All  interested  parties  were  informed  of  the  essential  facts  and  considerations  on  the 
basis of which it is intended to recommend that the existing measures be maintained. 
They were also granted a period to make representations subsequent to this disclosure. 
No  evidence  was  put  forward  showing  that  the  extension  by  Regulation  192/1999 
should be discontinued. 

(115)  It  follows  from  the  above  that,  as  provided  for  under  Article  11(2)  of  the  basic 
Regulation,  the  anti-dumping  measures  applicable  to  imports  of  gas-fuelled,  non-
refillable pocket flint lighters, and to certain refillable lighters, originating in China or 
consigned from or originating in Taiwan, imposed by Regulation (EEC) N° 3433/91 as 
amended  by  Regulation  (EC  No  1006/95  and  as  extended  by  Regulation  (EC)  No 
192/1999 and Regulation (EC) No 1824/2001 should be maintained. 

HAS ADOPTED THIS REGULATION: 

Article 1 

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

2. The rate of the duty, applicable to the net, free-at-the Community frontier price, before 
duty, shall be set at EUR 0,065 per lighter. 

Article 2 

1.  The  anti-dumping  duty  mentioned  in  Article  1  is  hereby  extended  on  imports  of  gas-
fuelled, non-refillable pocket flint lighters falling within CN code ex 9613 10 00 consigned 
from Taiwan, whether declared as originating in Taiwan or not (TARIC code 9613 10 00 11) 
and to imports of gas-fuelled, refillable pocket flint lighters, incorporating a plastic tank body, 
falling  within  CN  code  ex  9613  20  90  (TARIC  code  9613  20  90  29),  originating  in  the 
People's  Republic  of  China  or  consigned  from  Taiwan,  whether  declared  as  originating  in 
Taiwan or not (TARIC code 9613 20 90 21). 

2. Gas-fuelled, refillable pocket flint lighters, incorporating a plastic tank body, with a free-at-
Community-frontier, duty unpaid, value per piece equal to or greater than EUR 0,15, shall not 
be subject to the duty extended by paragraph 1, if such a price is specified in an invoice issued 
by an exporter located in the People's Republic of China or Taiwan to an unrelated importer in 
the Community.". 

Article 3 

1. In cases where goods have been damaged before entry into free circulation and, therefore, 
the price actually  paid or payable is apportioned for the determination of the customs value 
pursuant to Article 145 of Commission Regulation (EEC) No 2454/93, the amount of the anti-
dumping  duty,  calculated  on  the  basis  of  the  amounts  set  above,  shall  be  reduced  by  a 
percentage which corresponds to the apportioning of the price actually paid or payable. 

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

Article 4 

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

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

Done at 

For the Council 
The President 

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