Council Regulation (EC) No 1419/2007 of 29 November 2007 terminating the partial interim review of the anti-dumping measures applicable to imports of integrated electronic compact fluorescent lamps (CFL-i) originating in the People's Republic of China
Date: 2007-11-29
Institutions: Council of the European Union
Subjects: China, anti-dumping legislation, anti-dumping measure, import, lighting equipment, originating product

5.12.2007

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Official Journal of the European Union

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

I

REGULATIONS

COUNCIL REGULATION (EC) No 1419/2007

of 29 November 2007

terminating the partial
interim review of the anti-dumping 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
Community,

establishing the European

the Islamic Republic of Pakistan or the
of Vietnam,
Republic of
the Philippines whether declared as orig-
inating 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 inves-
tigation carried out pursuant to Article 13 of the basic
Regulation.

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(3) thereof,

(3)

Having regard to the proposal
consulting the Advisory Committee,

from the Commission, after

Whereas:

A. PROCEDURE

Measures in force

(1)

By Regulation (EC) No 1470/2001 (2),
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 (PRC)
following an investigation. Prior to that,
the Commission had imposed provisional anti-dumping
duties by Regulation (EC) No 255/2001 (3).

(2)

By Regulation (EC) No 866/2005 (4),
the Council
extended the anti-dumping measures
to also cover
imports of CFL-i consigned from the Socialist Republic

(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.
(3) OJ L 38, 8.2.2001, p. 8.
(4) OJ L 145, 9.6.2005, p. 1.

the

By Regulation (EC) No 1322/2006 (5),
the Council
in force. The
amended the anti-dumping measures
amendment was made following an interim review
scope. The
carried out with regard to the product
result of
the
investigation and the
amending Regulation was that direct current voltage
lamps (DC-CFL-i) should be excluded from the scope of
anti-dumping measures would
the measures. The
voltage
accordingly only
lamps
fluorescent
(including
discharge lamps functioning on both alternating and
direct current) (AC-CFL-i).

alternating

electronic

effect of

compact

current

cover

(4)

(5)

By Regulation (EC) No 1205/2007 (6)
the Council
prolonged the anti-dumping measures
in force. The
prolongation was made following an expiry review
carried out pursuant to Article 11(2) of the Basic Regu-
lation.

Current investigation

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

(5) OJ L 244, 7.9.2006, p. 1.
(6) OJ L 272, 17.10.2007, p. 1.

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that

sufficient evidence existed for

Having determined, after consultation of the Advisory
Committee,
the
initiation of a review, the Commission, on 8 September
initiated an investigation (1) 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.

(11)

(6)

(7)

(8)

(9)

(10)

Investigation and parties concerned

The Commission officially advised the applicant and the
exporting producer in the PRC, as well as the represen-
tatives 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.

exporting producer

In order to obtain the information deemed necessary for
its investigation, the Commission sent questionnaires to
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:

concerned. The

— Lisheng Electronic & Lighting (Xiamen) Co., Ltd.

Related company in the PRC

— Megaman Electrical & Lighting Ltd (Xiamen).

Related companies in Hong Kong

— Neonlite Electronic & Lighting Ltd (HK),

— Electric Light Systems Ltd (HK).

Related importer in the Community

— IDV, Import und Direkt-Vertriebs-Ges.mbH,

Germany.

Investigation period

concerns

investigation period as

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.

the

(1) OJ C 217, 8.9.2006, p. 2.

B. PRODUCT CONCERNED AND LIKE PRODUCT

Product concerned

compact

lamps
electronic

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
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
these
concluded
products are alike within the meaning of Article 1(4)
of the basic Regulation.

prolongation Regulation,

the

in

C. DUMPING

Market economy treatment (MET)

(13)

in
Pursuant to Article 2(7)(b) of the basic Regulation,
anti-dumping investigations concerning imports orig-
inating 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 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. business decisions and costs are made in response to
market signals, and without significant State inter-
ference;

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2. 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;

3. there are no significant distortions carried over from

former non-market-economy system;

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.

4.

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

(22)

5. 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 infor-
mation submitted in the MET applications and deemed
the Chinese
necessary. The investigation revealed that
exporting producer fulfilled all of
the conditions for
granting MET.

(17)

(18)

(19)

(20)

Normal value

the total domestic sales of

it was first verified
In order to establish normal value,
whether
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.

the above requirements,

In view of
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.

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

Conversely, the amount for selling general and adminis-
trative expenses (SGA) and profits could not be estab-
lished 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 estab-
and (b).
lished in accordance with Article 2(6)(a)

(23)

(24)

(25)

Consequently,
the Commission calculated a weighted
average using the SGA expenses and profit rates from
two cooperating 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
trade. The SGA
expenses and profit average rates found in these coop-
erating 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.

in the ordinary course of

Export price

sales

The exporting producer made export
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
the
independent
in
Community,
established in
the
the basic Regulation,
accordance with Article 2(8) of
namely on the basis of export prices actually paid or
payable.

export price was

customers

exported

to

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,
the basic
in accordance with Article 2(9) of
Regulation. The appropriate profit margin was estab-
lished on the basis of
information provided by
unrelated cooperating traders/importers operating on
the Community market.

Comparison

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 inves-
tigated exporting producer, allowances for differences in
costs, ocean freight and insurance
transport
costs,
loading and ancillary costs, packing costs,
handling,
credit
and
and
commissions have been granted where applicable and
justified.

costs, warranty

guarantee

costs

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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)

(28)

consistently applied by the
Following the practice
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.

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

(29) As provided by Article 2(11) and (12) of the basic Regu-
lation, 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
that
exported to the Community in the RIP.

the exporting producer

for

gation has not changed. The partial
pursuant
to Article 11(3) of
should therefore be terminated.

interim review
the basic Regulation

(31)

(32)

E. TERMINATION OF THE REVIEW

interim
Based on the above considerations, the partial
review concerning
Electronic & Lighting
(Xiamen) Co., Ltd should be terminated without any
amendment to Regulation (EC) No 1205/2007.

Lisheng

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

interim review of

The partial
the anti-dumping measures
applicable to imports of integrated electronic compact fluor-
escent 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 Regu-
lation (EC) No 384/96,
is hereby terminated without any
amendment to Regulation (EC) No 1205/2007.

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 investi-

Article 2

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

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

Done at Brussels, 29 November 2007.

For the Council
The President

M. LINO