Council Regulation (EC) No 1458/2007 of 10 December 2007 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: 2007-12-10
Institutions: Council of the European Union
Subjects: China, Taiwan, anti-dumping legislation, anti-dumping measure, import, manufactured goods, originating product

12.12.2007

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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 1458/2007

of 10 December 2007

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,

16,9 % on imports of gas-fuelled, non-refillable pocket
in the People’s
flint
inter alia,
Republic of China (‘PRC’ or ‘China’).

lighters originating,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1)
(the
basic Regulation), and in particular Articles 9 and 11(2) thereof,

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

Whereas:

A. PROCEDURE

1. Measures in force

(1)

In 1991,
the Council, by Regulation (EEC) No
3433/91 (2), imposed a definitive anti-dumping duty of

(2)

In 1995, by Council Regulation (EC) No 1006/95 (3) the
original ad valorem duty was replaced by a specific duty
of ECU 0,065 per lighter.

(3)

(4)

the basic Regulation (4)

Further to an investigation in accordance with Article 13
the above measures were
of
extended by Council Regulation (EC) No 192/1999 (5)
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
PRC or consigned from or originating in Taiwan with
a free-at-Community frontier, duty unpaid value per
piece below EUR 0,15.

the Council,

by Regulation

In 2001,
(EC) No
1824/2001 (6) confirmed the definitive anti-dumping
imposed by Regulation (EC) No 1006/95 as
duties
extended by Council Regulation (EC) No 192/1999
(existing measures) pursuant
the
basic Regulation.

to Article 11(2) of

(3) OJ L 101, 4.5.1995, p. 38.
(4) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(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).

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

(2) OJ L 326, 28.11.1991, p. 1. Regulation as last amended by Regu-

lation (EC) No 174/2000 (OJ L 22, 27.1.2000, p. 16).

(5) OJ L 22, 29.1.1999, p. 1.
(6) OJ L 248, 18.9.2001, p. 1. Regulation as amended by Regulation

(EC) No 155/2003 (OJ L 25, 30.1.2003, p. 27).

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(5)

(6)

(7)

(8)

(9)

(10)

2. Request for a review

(11)

Following the publication of a notice of
impending
expiry (1) 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 Regu-
lation.

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
the known exporters/producers in the PRC made
of
it was decided that sampling was
themselves known,
not required.

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

the expiry of

that

after

determined,
that

consulting
sufficient evidence existed for

the Advisory
Having
Committee,
the
initiation of an expiry review pursuant to Article 11(2)
the Commission, by notice
the basic Regulation,
of
published in the Official
the European Union
Journal of
(notice of
review on 16
initiated this
September 2006 (2).

initiation)

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

advised
applicant
the
officially
The Commission
two other Community
the
Community producer,
producers, the exporters/producers in the PRC and the
importers known to be concerned, as well as the autho-
rities in the PRC and Taiwan of the initiation of the
expiry review. Interested parties were given the oppor-
tunity to make their views known in writing and to
request a hearing within the time limit set out in the
notice of initiation.

the producer

(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 the proposed analogue
In addition,
country, Brazil, as well as eight 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
importers contacted replied to the questionnaire stating
that they do not import the product concerned, but only
electronic (piezo) lighters.

(13)

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

the premises of

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)

producer,

applicant Community

The
other
Community producers opposing the maintenance of
the anti-dumping measure and an importers’ association
made their views known. All interested parties who so
requested and showed that there were particular reasons
why they should be heard, were granted a hearing.

two

(1) OJ C 321, 16.12.2005, p. 4.
(2) OJ C 223, 16.9.2006, p. 7.

flint

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
lighters. As
(3), the product scope was
described above in recital
extended in 1999 to include gas
refillable
fuelled,
pocket flint lighters incorporating a plastic tank body
(‘flint lighters’ or ‘the product concerned’). The product
currently classified within CN codes
concerned is
ex 9613 10 00
(TARIC codes
9613 10 00 11, 9613 10 00 19, 9613 20 90 21 and
9613 20 90 29).

ex 9613 20 90

and

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(15) One

in

of

non-complainant

It was in particular argued that

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

(16)

current

investigation,

Consequently, as shown in the previous investigations
mentioned in recitals (1) to (4), and as confirmed by
the
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,

of

the

information on imports

the Chinese
exporting producers did not cooperate. Therefore no
reliable
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.

(19)

(20)

the basis of
economy third country (the analogue country).

the information obtained in a market

in the

subsequent

Thailand was the analogue country in the original inves-
tigation. However,
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,
the size and
openness of its domestic market.

inter alia, of

in view,

reviews,

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 estab-
the PRC. Brazil was
lishing the normal value for
considered appropriate
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.

in view of

size

the

the

lower

high. One

(21) An importers’ association opposed the choice of Brazil as
analogue country, arguing that there was only one main
in Brazil and that domestic prices were
producer
extremely
non-complainant
of
Community producers claimed that the level of compe-
tition 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
than the alleged number of
in Brazil was
the investigation confirmed that
producers in China,
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
these entered the country at very low
showed that
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
itself,
this company did not produce lighters
Malaysia could not be considered as an analogue country.

2. Dumping during the investigation period

2.1. 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.

(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 investi-
gation. Accordingly, the normal value was determined on

2.2. Normal value

(23)

to Article 2(7)(a) of

Pursuant
the basic Regulation,
normal value was established on the basis of verified
information received from the producer in the analogue
country.

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The Commission first established that the total domestic
sales of the Brazilian producer were made in sufficient
quantities and could thus be considered representative
within the meaning of Article 2(2) of the basic Regu-
lation.

the normal value based on alleged quality differences.
This claim was therefore rejected.

2.5. Dumping margin

(24)

(25)

analogue

country’s domestic market

It was subsequently examined whether each type of the
product concerned sold in representative quantities on
the
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
in the ordinary course of trade, by inde-
or payable,
pendent customers on the domestic market of
the
analogue country.

2.3. Export price

(27)

the Chinese producers cooperated,

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

2.4. Comparison

(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.

(30)

(31)

(32)

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
export price on an ex-works basis. This
average
comparison
significant
existence
the dumping margin amounting to more
dumping,
than 150 %.

showed

the

of

3. Development of
allowed to lapse

3.1. Preliminary remarks

imports should measures be

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 circum-

vention 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.

(29) One of

the non-complainant Community producers
the lighters in Brazil were produced at
argued that
higher costs due to higher quality standards, but did
not submit any evidence to quantify and support this
claim. Due to the non-cooperation of
the Chinese
exporting producers,
the investigation did not reveal
any indications which would have allowed adjusting

(33)

lighters imported from Indonesia did not,

The OLAF investigation also found that a large amount
of
in fact,
originate in that country. The investigation into their
true origin is continuing. The applicant is planning to
lodge a circumvention case against six countries in the
Far East.

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(34)

(35)

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

flint
so called electronic

concerned) as

The importers’ association ELIAS and one importer
the Commission is drawing definitive
claimed that
from OLAF’s ongoing investigation and
conclusions
in the position to exercise
it was not
stated that,
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)

to

the

utilization. According

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
applicant’s
capacity
estimate the total production capacity in the PRC
amounts to around 3,9 billion lighters per year,
the
lighters. This
majority of which are probably flint
estimate is in line with the data given by Chinese
lighter manufacturers on their websites. For example,
one single Chinese producer, Zhuoye Lighter Manufac-
turing 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 elec-
tronic (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
types of
makes it easy to switch between different
there
lighters,
increased
strong likelihood of
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.

is

a

3.4. Chinese exports to other third countries

flint

(39) As none of the Chinese exporting producers cooperated,
there is no verified information available regarding
exports of
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.

to other

lighters

(40)

(41)

(42)

is
The Community industry has demonstrated that
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 the
Community market should the measures be allowed to
lapse.

to shift

exports

their

it

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 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.

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 spec-
ulative and rejected.

(43)

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

that

(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.

(45)

(46)

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4. Conclusion

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.

the basic Regulation. The other
and Article 5(4) of
Community producers were not considered to form
part of
the Community industry since they did not
fully cooperate but only submitted certain information
the measures on their
in relation to the impact of
activities.

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 three producers whose output constitutes the total
Community production of the like product within the
meaning of Article 4(1) of the basic Regulation.

(48)

(49)

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).

The applicant Community producer, BIC S.A. represents
the Community production of non-
about 80 % of
refillable
the
Community industry within the meaning of Article 4(1)

constitutes

therefore

lighters

and

(50)

(51)

E. SITUATION ON THE COMMUNITY MARKET

1. Preliminary remarks

(16) above,

For the reasons explained in recital
the
analysis with regard to the situation on the Community
market was based on collected data relating to gas-
fuelled, non-refillable pocket
lighters and gas-
fuelled, refillable pocket flint lighters (‘flint lighters’ or
‘the product concerned’).

flint

producers which

it was not possible to
Further, as mentioned above,
two
activities of
obtain data with regard to the
Community
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
from other
precise
interested parties.

information was not

available

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

interested party,

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 database)

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

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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

Unit price

Index

2003

4 949

100

0,9 %

0,22

100

2004

7 902

160

1,4 %

0,14

66

2005

15 452

312

2,3 %

0,13

60

RIP

11 657

236

1,6 %

0,14

65

Source: verified questionnaire replies and EU imports (Comext TARIC database)

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

2003

60 596

100

11,4 %

0,04

100

2004

57 717

95

10,0 %

0,04

95

Imports volume from Indonesia

51 968

56 907

Index

Market share

Unit price

Index

100

9,8 %

0,05

100

110

9,9 %

0,04

76

2005

65 729

108

9,9 %

0,04

93

68 524

132

10,4 %

0,04

75

RIP

47 162

78

6,5 %

0,04

89

72 012

139

9,9 %

0,04

81

Imports volume from Vietnam

106 117

156 938

191 498

237 529

Index

100

148

180

224

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Market share

Unit price

Index

2003

20,0 %

0,05

100

2004

27,3 %

0,04

92

2005

29,0 %

0,04

87

RIP

32,6 %

0,04

91

Imports volume from rest of
world

the

53 294

56 377

65 025

119 268

Index

Market share

Unit price

Index

100

10,1 %

0,08

100

106

9,8 %

0,09

101

122

9,8 %

0,07

81

224

16,4 %

0,07

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 cooperated 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

2003

—

100

2004

—

109

+ 9 %

2005

—

120

+ 10 %

RIP

—

122

+ 1 %

Production

Index

Y/Y trend

Source: verified questionnaire reply

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(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 three percentage points.

Table 5 — Production capacity and capacity utilization

2003

—

100

76 %

100

2004

—

109

+ 9 %

75 %

100

2005

—

114

+ 4 %

80 %

105

RIP

—

118

+ 4 %

78 %

103

Production capacity

Index

Y/Y trend

Capacity utilization

Index

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

2003

—

100

2004

—

105

+ 5 %

2005

—

95
– 10 %

RIP

—

225

137 %

Stock

Index

Y/Y trend

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.

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Table 7 — Sales volume, prices and market share

2003

—

100

—

100

2004

—

95
– 5 %

—

98
– 1 %

47,7 %

41,6 %
– 6,1 pp

2005

—

101

+ 7 %

—

95
– 4 %

38,6 %
– 3 pp

RIP

—

95
– 6 %

—

97

+ 3 %

33 %
– 5,6 pp

Sales volume (units)

Index

Y/Y trend

Avg. prices (EUR/unit)

Index

Y/Y trend

Market share

Y/Y trend

Source: verified questionnaire reply

6.5. Employment, productivity and wages

(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

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 %

Employment

Index

Y/Y trend

Productivity (units per employee)

Index

Y/Y trend

Labour costs (000 EUR)

Index

Y/Y trend

Source: verified questionnaire reply

6.6. Profits

(67)

Profitability fell by 4,6 percentage points.

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Table 9 — Profitability

2003

—

2004

—

2005

—

RIP

—

– 0,2 pp

– 2,0 pp

– 2,4 pp

Profitability (%)

Y/Y trend

Source: verified questionnaire reply

6.7. Investments

(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

—

100

2004

—

111

11 %

2005

—

165

49 %

RIP

—

160
– 3 %

Investments

Index

Y/Y trend

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 repre-
sented only 1 % of the total sales made in the Community which cannot be considered as excessive.

Table 11 — Cash flow

2003

—

100

2004

—

74
– 26 %

2005

—

72
– 4 %

RIP

—

50
– 30 %

Cash flow

Index

Y/Y trend

Source: Verified questionnaire reply

6.10. Growth

(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.

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(72)

(73)

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

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
to the
information available indicates that
Community at dumped prices.
the
weighted average normal value established for the analogue country was compared with the
weighted average export price. This comparison showed the existence of significant dumping, the
dumping margin amounting to more than 150 %.

the Chinese exporting producers continue to sell

In accordance with Article 2(11) of

the basic Regulation,

(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
the period considered, profits fell continuously
Community industry was profitable throughout
during that 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

2003

—

100

—

100

—

100

Volume (unit)

Index

Y/Y trend

Value (000’ EUR)

Index

Y/Y trend

Average price (EUR/unit)

Index

Y/Y trend

Source: verified questionnaire reply

RIP

—

135

+ 5 %

—

147

2004

—

113

2005

—

129

+ 13 %

+ 14 %

—

107

+ 7 %

—

95
– 5 %

—

134

+ 25 %

+ 10 %

—

104

+ 9 %

—

109

+ 5 %

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(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.

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 competi-
tiveness of the company.

(82)

(83)

(84)

(85)

(78)

7. Conclusion on the situation of the Community

industry

and

capacity

capacity

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 Community
industry’s profitability fell during the RIP. Production,
rate
production
increased which is, however, mainly due to the increase
in export
industry.
Historically, the sector has always shown very high prof-
itability level which is needed to recoup investments
necessary to adapt
the production to new security
requirements and improve the overall competitiveness
of
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 %.

is to be noted that

the Community

the company.

activities of

utilisation

It

(79) Annual investments in the like product developed posi-
tively 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 prof-
itability) 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 prof-
the
In the original
itability levels.
purpose of establishing the injury elimination level,
it
was considered that any measure should allow the

investigation,

for

the Community
The somewhat negative situation of
industry, despite
can be
explained by the high degree of circumvention which
characterises the sector, as found by OLAF.

the measures

in place,

The importers contested the findings of the Commission
concerning the economic situation of the Community
submitted to substantiate their
industry. The figures
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.

this statement

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
is incorrect.
Indeed, the overall Community lighter market has been
flint
increasing over the last years and the share of
lighters in the lighter market has been slightly decreasing
but
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 decreased over
the period considered. The
arguments put forward are therefore rejected.

remained at a level of 70 % in 2006.

from third

in the Community

The importers argued that
the Community producer
and anti-
a monopoly
holds
dumping measures would enforce its position even
further. This statement is incorrect as significant import
the
volumes
complainant
Community market.
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.

countries
Furthermore,

entering

the

are

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Official Journal of the European Union

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(86)

of

overall

positive

situation

economic

the
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
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
constant
growth of
reduction in the number of smokers, shows that the
Community industry has been able to generate growth
margins in a very competitive market.

lighter market, despite

concerned allows

the

a

F. LIKELIHOOD OF RECURRENCE OF INJURY

(87) Although continuation of material injury, caused by frau-
dulent 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

(92)

(88)

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

in recital
of

there
product

capacities

(37)

the

Community industry prices by an average of 39 % it is
concluded that the repeal of the measures would in all
likelihood result in the recurrence of material injury to
the Community industry.

(91) One of

imports

from these other

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
sources.
caused by the
However, this Community producer did not contest the
availability of significant spare capacities in China and the
the Chinese exporting producers to shift
incentive of
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
the arguments brought
forward could therefore devaluate the conclusions as
outlined above in recitals (87) to (90). This claim was
therefore rejected.

situation. None of

G. COMMUNITY INTEREST

1. Introduction

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
the
all
Community industry and other Community producers
and the importers of the product under consideration.

the various

those of

involved,

interests

i.e.

(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.

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.

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

and recurrence of

injury,

there

3. Conclusion on the likelihood of recurrence of

2. Interests of the Community industry

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

(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.

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(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
the continuation of anti-
be concluded that, without
dumping measures,
its situation will most likely dete-
riorate.

3. Interests of the other Community producers

the

reply

claimed that

in the Community are higher

(97) One of the Community producers who did not submit a
anti-dumping
questionnaire
measures currently in force are detrimental
to the
European consumer. In particular, this producer claimed
that price levels
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
these measures would be damaging the
Community,
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
it was
inefficient and should not be renewed. Finally,
claimed that any injury was due the fact
the
Community industry did not adapt to the new global
market.

that

(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 profit-
ability. However,
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.

the company indicated that

(101) The Community producer in question denied that
relocated its production and claimed instead that
simply built

additional production lines

it
it
in China

than

types

different

deadlines,

the
in
product
producing
Community,
range. This
thus enlarging its product
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 cooperate in the present proceeding.
None of the information submitted, partly outside the
requested
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 infor-
It could also not explain
mation included in the file.
how these
an impact on the
conclusions outlined in recital (100) above or devaluate
these conclusions. This argument had therefore to be
rejected.

facts would have

therefore

could

be

from dumping at

(102) Likewise, this company’s imports should not be allowed
to benefit
expense of
the
it should be noted
In any case,
Community industry.
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.

the

(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.

(104) On the basis of the above,

in force would not have

it was concluded that the
measures
significant,
a
negative impact on the other Community producers
and would not
their
financial interests.

significantly

adversely

affect

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.

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

the applicant,
the

regarding the absence of

continuation of

(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
from this
Community
growth,
sales, but also
since it has not only lost
market share in the flint lighter market.

could not benefit

industry

(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,
measures,
have a significant
final customer.

it was considered that
the
for the reasons set out above, would not
impact on the selling price to the

the impact of

6. Conclusion on Community interest

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

the maintenance of

against
measures.

the existing anti-dumping

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 (EC)
No 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 origi-
nating in Taiwan,
imposed by Regulation (EEC) No
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

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

ex 9613 10 00

flint

The rate of the duty, applicable to the net, free-at-the
at

2.
Community frontier price, before duty,
EUR 0,065 per lighter.

shall be

set

Article 2

The anti-dumping duty mentioned in Article 1 is hereby
1.
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
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).

lighters,

flint

12.12.2007

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Official Journal of the European Union

L 326/17

Gas-fuelled, refillable pocket flint lighters, incorporating a
2.
plastic
tank body, with aco-operated 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
if such a price is specified in an invoice issued
paragraph 1,
by an exporter located in the People’s Republic of China or
Taiwan to an unrelated importer in the Community.

value pursuant to Article 145 of Commission Regulation (EEC)
No 2454/93 (1),
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.

amount of

the

the

Unless otherwise

2.
concerning customs duties shall apply.

specified,

the provisions

in force

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

Article 4

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, 10 December 2007.

For the Council
The President

L. AMADO

(1) OJ L 253, 11.10.1993, p. 1.