Commission Regulation (EC) No 1130/2008 of 14 November 2008 imposing a provisional anti-dumping duty on imports of certain candles, tapers and the like originating in the People’s Republic of China
Date: 2008-11-14
Institutions: European Commission
Subjects: China, anti-dumping duty, disclosure of information, import, lighting equipment, originating product, production, trade-mark law

L 306/22

EN

Official Journal of the European Union

15.11.2008

COMMISSION REGULATION (EC) No 1130/2008

of 14 November 2008

imposing a provisional anti-dumping duty on imports of certain candles, tapers and the like
originating in the People’s Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

given an opportunity to make their views known in
writing and to request a hearing within the time limit
set in the notice of initiation.

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 Article 7 thereof,

After consulting the Advisory Committee,

Whereas:

1. PROCEDURE

1.1. Initiation

(1)

(2)

(3)

the European Union (2),

On 16 February 2008, the Commission announced, by a
notice (‘notice of
initiation’) published in the Official
the initiation of an
Journal of
anti-dumping proceeding with regard to imports into
the Community of certain candles, tapers and the like
originating in the People’s Republic of China (‘PRC’ or
country concerned').

The proceeding was initiated as a result of a complaint
lodged on 3 January 2008 by certain producers of
certain candles, tapers and the like representing a major
proportion,
the total
in this case around 60 % of
Community production of certain candles,
tapers and
the like. The complaint contained prima facie evidence
of dumping of the said product and of material injury
therefrom, which was considered sufficient to justify the
initiation of an investigation.

1.2. Parties concerned by the proceeding

The Commission officially advised the complainants, the
exporting producers, importers, other parties known to
be concerned, and representatives of
the
Interested parties were
initiation of

the proceeding.

the PRC of

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ C 43, 16.2.2008, p. 14.

(4)

(5)

(6)

(7)

(8)

other

Community

complainants,

The
producers,
importers including
exporting producers in the PRC,
large retail groups and suppliers of raw materials made
interested parties, who so
their views known. All
requested and showed that
there were particular
reasons why they should be heard, were granted a
hearing.

sampling would be necessary,

In the notice of initiation, the Commission indicated that
sampling for the determination of dumping and injury in
accordance with Article 17 of the basic Regulation may
be applied. In order to enable the Commission to decide
whether
all known
exporting producers in the PRC, Community importers
and Community producers were asked to make them­
selves known to the Commission and to provide, as
specified in the notice of
initiation, basic information
on their activities related to the product concerned
to
from 1
period
the
during
31 December 2007.

January

2007

As explained in recitals (33) to (40) below, forty one
exporting producers in the PRC provided the requested
information and agreed to be included in a sample. On
the basis of the information received from the coop­
erating exporting producers, the Commission selected a
sample of eight producers in the PRC or groups of
related companies having the largest volume of exports
to the Community. All exporting producers concerned,
as well as their association and the authorities of the
PRC, were consulted and agreed on the selection of the
sample.

In order to allow exporting producers in the PRC to
submit a claim for market economy treatment (‘MET’)
(‘IT’),
the
or individual
if
Commission sent
exporting
claim forms
producers in the PRC known to be concerned and the
authorities of the PRC.

they so wished,

treatment

to the

PRC,

The Commission officially disclosed the results of the
MET findings to the exporting producers concerned in
the
the
complainants. They were also given an opportunity to
make their views known in writing and to request a
hearing if there were particular reasons to be heard.

authorities of

PRC and

the

the

15.11.2008

EN

Official Journal of the European Union

L 306/23

(9)

the criteria set

One exporting producer which was not included in the
sample because it did not meet
in
Article 17(1) of the basic Regulation claimed an indi­
the basic
to Article 17(3) of
vidual margin pursuant
individual
It was considered however that
Regulation.
examination would be unduly burdensome and would
have prevented the timely completion of
the investi­
it was provisionally concluded that
gation. Therefore,
the
the
an individual
for
request
exporting producer could not be accepted.

examination of

(10)

The Commission sent questionnaires to all parties known
to be concerned and to all the other companies that
made themselves known within the deadlines set out in
the notice of
initiation, namely to 31 Community
producers, 32 importers as well as two raw materials
suppliers.

(11)

Replies were received from the complainant Community
producers, six unrelated importers and two suppliers.

(12) With regard to the country concerned by this investi­
gation,
the
sampling form from forty one exporting producers in
the PRC.

the Commission

received

replies

to

(13)

The Commission sought and verified all the information
deemed necessary for a provisional determination of
dumping, resulting injury and Community interest. Veri­
fication visits were carried out at the premises of the
following companies:

Producers located in the Community

2. Dalian Bright Wax group:

— Dalian Bright Wax Co., Ltd., PRC,

— Dalian Bright Wax, Hong Kong,

3. Dalian Talent Gift Co., Ltd., PRC,

4. Gala-Candles (Dalian) Co., Ltd., PRC,

5. Qingdao Kingking Applied Chemistry Co. Ltd., PRC,

6. Ningbo Kwung's Home group:

— Ningbo Kwung's Home Interior & Gift Co., Ltd.,

PRC,

— Apple-Ann Home Creation (H.K.) Limited, Honk

Kong,

7. Ningbo Kwung's Wisdom group:

— Ningbo Kwung's Wisdom Art & Design Co., Ltd.,

PRC,

— Ningbo Kwung's Import and Export Co., Ltd.,

PRC,

1. Bolsius International B.V., Schijndel, the Netherlands,

— Shaoxing Koman Home Interior Co., Ltd., PRC,

2. Vollmar GmbH, Rheinbach, Germany,

8. Win Win Group:

3. GIES-group

— Jiashan Jiahua Candle Arts & Crafts Co. Ltd., PRC,

— GIES Kerzen GmbH, Gline, Germany,

— Win Win Arts & Crafts Co., Ltd., PRC.

— Promol
Portugal,

Industria de Velas, Caldas da Reinha,

Related importer in the Community

— Liljeholmens
Sweden.

Stearinfabriks AB, Oskarshamn,

— Gala Kerzen GmbH, Germany.

Exporting producers in the PRC and related companies in the
PRC and in Hong Kong

(14)

1. Aroma Consumer Products

(Hangzhou) Co., Ltd.,

PRC,

1.3. Investigation period

The investigation of dumping and injury covered the
period from 1 January 2007 to 31 December 2007
(the investigation period or the ‘IP’). The examination
of trends relevant for the assessment of injury covered
the IP (‘period
the period from 2004 to the end of
considered’).

L 306/24

EN

Official Journal of the European Union

15.11.2008

2. PRODUCT CONCERNED AND LIKE PRODUCT

2.1. Product concerned

The product concerned is certain candles, tapers and the
than memory lights and other outdoor
like, other
burners, exported to the Community and originating in
the PRC (candles). The production process to manu­
facture candles is rather simple and consists in heating
raw materials (mainly paraffin wax and stearin) and
shaping the candle in moulds or containers
in a
cooling process. Candles produce heat and light but are
largely used for interior decoration purposes, e.g.
in
various candle holders, pillars and other decoration items.

Candles
ex 3406 00 11, ex 3406 00 19 and ex 3406 00 90.

declared within CN codes

are normally

(15)

(16)

(17) Memory lights and other outdoor burners are not part of
the product concerned. These can be defined as products,
the fuel of which contains more than 500 ppm of
toluene and/or more than 100 ppm of benzene and/or
have a wick with a diameter of at least 5 millimetres
and/or are individually contained in a plastic container
with vertical walls of at least 5 cm in height. It was
considered that these criteria are setting a clear dividing
line between the types of candles which are covered by
this investigation and those which are not.

(18)

(19)

The investigation showed that there is a large number of
different types of candles such as tapered candles, tea
lights, as well as many other seasonal and special types
produced in the PRC and sold on the Community
market. The various types of candles can basically differ
in size, shape, colour, perfumed or un-perfumed, etc, but
all
share the same basic chemical and
technical characteristics and uses and they are to a
large extent interchangeable. Therefore,
it is considered
that all candles covered by the present investigation are
part of the same product family.

these types

Certain interested parties made submissions and claims
concerning the definition of the product concerned. It
has been claimed that memory lights and outdoor
candles have been unduly excluded from the product
scope because the Community industry dominates this
segment and because the technical criteria mentioned
above in recital (17) are not unique in the sense that
memory lights and other outdoor burners do not
characteristics.
always
the distinction made
Moreover,
between candles and memory lights and other outdoor
burners was not supported by any standard or norms in
the industry and was contradicting the assumption that
tea lights and other candles were both included in the
definition of the product concerned.

they claimed that

above-mentioned

exceed

the

In this context

(20) Other parties claimed that the production processes and
the range of products produced in the PRC as well as the
types of candles exported to the Community were very
in many
specific.
the product
instances exporters
concerned together with other accessories such as glass
cup and/or pillar candles whereby the export value
includes all the items and not only candles. All these
types should be excluded from the scope of the investi­
gation.

in the PRC export

it was stated that

(21)

(22)

It was also claimed that exporting producers in the PRC
are producing to a large extent handmade or special
candles with further
such as
printing, scratching and lacquering. These are labour
intensive types, called ‘fancy’ or ‘special’ candles, not
manufactured in the Community. Accordingly these
parties claimed that the special candles should also be
excluded from the product scope of this investigation.

refining operations,

the above claims were not
It should be noted that
specific and did not
include any supporting evidence
showing that the product concerned was not correctly
defined in the notice of initiation. In fact, as stated above,
it was found that all types of the product concerned
share the same basic chemical and technical characteris­
tics and uses and they are to a large extent
inter­
changeable. Concerning the claims made on memory
these
lights and outdoor candles,
products can be distinguished from other
types of
the technical and chemical
candles on the basis of
(17) above. The fact that
criteria mentioned in recital
on the one hand the Community producers may be
dominant
in this particular segment or on the other
hand any allegation that the Community producers are
not manufacturing
the product
concerned is irrelevant and does not alter the definition
of the product concerned.

certain types of

is noted that

it

(23)

It should also be noted that the production processes, the
variety of product types which are produced and sold in
the Community market, the existence or the absence of
norms are not per se valid reasons which are demon­
the product concerned
strating that
should be revised.

the definition of

2.2. Like product

(24)

Certain interested parties claimed that the so-called tea
light type should be distinguished from other candles
because they have different physical characteristics such
as the size and the fact the wax is held in a container in
order to prevent the wax from overflowing or dripping.
Moreover, whilst the main use of candles is to produce
light, the main purpose of tea light is to produce heat.

15.11.2008

EN

Official Journal of the European Union

L 306/25

(25)

(26)

(27)

(28)

(29)

Certain interested parties argued that candles produced
by the Community industry and sold on the Community
market were not alike to the product concerned. They
claimed in particular that the product concerned was
largely sold in sets including other decoration items
such as candle holders, pillars, other ceramic or glass
items and that it was not possible to distinguish the
value of the candle in the set. It was also argued that
whilst Community producers were only selling standard
types of candles, exporting producers in the PRC were
selling large volumes of special types of candles which
cannot be compared to the standard types.

Concerning the claim made on the use of certain candles
types, it should be noted that during a hearing held in
particular with the Association of candles producers in
the PRC it was stated that domestic consumption in the
PRC is significantly increasing in the last years and that
candles sold domestically had the same main use as in
the Community, namely interior decoration. In regard to
the alleged difference in uses between candles (light) and
tea lights (heat), it was found that these product types are
interchangeable and that both types can be used for
providing light and heat, but that, as stated in recital
(15) above,
interior
decoration purposes.

they are both largely used for

It is also recalled that, as mentioned in recital (18) above,
there are various types of candles which basically can
differ in size, shape or colour but all these types share
the same basic chemical and technical characteristics and
uses and they are to a large extent
interchangeable.
Therefore it is considered that the candle types covered
by the present investigation are part of the same product
family.

The criteria to be applied in the determination of the ‘like
product’ are based on the technical and chemical charac­
teristics, as well as the end uses or functions of the
product and not on factors such as the shape, scent,
colour or other features stated by the interested party.
The differences in terms of size have no incidence on the
definition of the product concerned and the like product,
as no clear distinction can be made between the products
belonging to the same product family in relation to their
main basic technical and chemical characteristics, to the
end use and to the perception of the users.

In view of the claims made and the evidence provided by
interested parties and all other information available at
it is considered that no
this stage of the investigation,
differences were found between the product concerned
and candles produced and sold by the exporters/pro­
ducers on their domestic market and by producers in
the Community, which also served as an analogue
the purpose of establishing the normal
country for

value with respect to the PRC. These candles have essen­
tially the same basic technical and chemical characteris­
tics and the same basic use. It is therefore provisionally
concluded that all types of candles are considered to be
alike within the meaning of Article 1(4) of the basic
Regulation.

(30) At the current stage of the investigation, the Commission
has not received sufficient evidence that
the physical
characteristics and/or end use of tea lights are funda­
from those of other candles and
mentally different
should lead to conclude that
tea lights and other
candles are not part of the same product family. The
investigation will
investigate and explore all
substantiated claims which may be made on the like
product issue.

further

(31)

(32)

(33)

(34)

3. SAMPLING

3.1. Sampling of Community producers

In view of the large number of Community producers
supporting the complaint, sampling was envisaged in the
notice of initiation in accordance with Article 17(1) of
the basic Regulation. On the basis of the analysis of the
sampling returns, a sample of five producers was finally
selected, based on the
largest production volume
criterion as foreseen in Article 17(1) of the basic Regu­
lation.

3.2. Sampling of importers

In view of the large number of importers identified from
the complaint, sampling was also envisaged for importers
in the notice
initiation in accordance with
Article 17(1) of the basic Regulation. However, on the
basis of the analysis of the number of sampling returns,
it was not necessary to apply sampling for importers.

of

3.3. Sampling for exporting producers in the PRC

In view of the large number of exporting producers in
sampling was envisaged in the notice of
the PRC,
in
initiation for
accordance with Article 17(1) of the basic Regulation.

determination of

dumping,

the

if so,

In order to enable the Commission to decide whether
sampling would be necessary and,
to select a
sample, exporting producers in the PRC were requested
to make themselves known within 15 days from the date
of the initiation of the investigation and to provide basic
information on their export and domestic sales, their
precise activities with regard to the production of
candles and the names and activities of all their related
companies involved in the production and/or selling of
the product concerned.

L 306/26

EN

Official Journal of the European Union

15.11.2008

(35)

The authorities of the PRC and the producers' association
were also consulted for the selection of a representative
sample.

3.3.1. Pre-selection of cooperating exporting producers

(36)

(37)

(38)

in the notice of

In total, 41 exporting producers,
including groups of
in the PRC, came forward and
related companies
provided the requested information within the given
deadline set
them
reported exports of candles to the Community during
the IP and, save for one producer with rather insig­
nificant export volumes, expressed a wish to participate
in the
are
considered to be co-operating in the present investigation
(‘co-operating exporters’).

sample. Thus, 40 exporting producers

initiation. All of

Exporting producers which did not make themselves
known within the aforesaid deadline or did not provide
the requested information in due time, were considered
as
The
non-cooperating with
comparison between Eurostat
import data and the
volume of exports to the Community of the product
companies
the
concerned reported for
mentioned in recital (36) suggests that the co-operation
of Chinese
exporting producers was very low as
mentioned in recital (87) below.

investigation.

IP by the

the

3.3.2. Selection of the sample of cooperating exporters in the

PRC

investigated within the

In accordance with Article 17(1) of the basic Regulation,
a sample was selected based on the largest representative
volume of exports of candles in the Community which
could reasonably be
time
the information received
available. On the basis of
from the exporting producers, the Commission selected
a sample of eight companies or groups of
related
companies having the largest volume of exports to the
Community. Based on the sampling information,
the
selected companies accounted, in the IP, for more than
73 % of the total volume of exports to the Community
of the product concerned reported by the co-operating
exporting producers referred to in recital (36) above. It
was therefore considered that such sample would allow
limiting the investigation to a reasonable number of
exporting producers which could be investigated within
the time available while ensuring a high level of repre­
sentation. All exporting producers concerned, as well as
their association and the authorities of the PRC, were
consulted and agreed on the selection of the sample.

(39)

Two co-operating exporters not included in the sample
requested to be included in the sample by suggesting that
criteria such as (i) the product range of the exporting
producers,
type of customers in the Community,
(iii) geographical representation, (iv) foreign investment

(ii)

the degree of

and (v)
Community,
selection of the sample.

reliance in exports
should be taken into account

to the
in the

(40)

In this regard it is noted that none of these criteria are
provided for in Article 17(1) of the basic Regulation
regarding the selection of
the sample. The requests
were therefore rejected.

3.4. Individual examination

(41) One exporting producer which was not included in the
sample because it did not meet
in
Article 17(1) of the basic Regulation claimed an indi­
the basic
vidual margin pursuant
Regulation.

to Article 17(3) of

the criteria set

(42) As mentioned in recital

In view of

(38) above,

the sample was
limited to a reasonable number of companies which
could be investigated within the time available. The
companies investigated for the purpose of the investi­
gation of dumping in the PRC are listed in recital (13)
above.
the
premises of a large number of
sampled companies
entailing the verification of Market Economy Treatment
claims and questionnaire replies, it was considered that
individual examinations would be unduly burdensome
and would have prevented the timely completion of
the investigation.

the verification carried out at

(43)

Therefore, it was provisionally concluded that the request
for an individual examination of the exporting producer
could not be accepted.

4. DUMPING

4.1. Application of Article 18 of the basic Regulation

(44)

In the course of the on-spot verification, one cooperating
exporter, part of a group of companies, selected in the
sample did not provide underlying documentation for a
items such as domestic sales, export sales,
series of
movement of stocks,
foreign currency receipts, bank
deposits and fixed assets which were deemed necessary
for the verification of its MET claim forms. In addition, (i)
VAT declarations, (ii) special VAT invoices required by
the authorities for the export tax rebate and (iii) income
tax declarations statements certified by the authorities
were not provided. Instead the documents provided on-
spot were not certified and were considered to be
information.
misleading
Finally, discrepancies were detected between accounting
documents submitted in the responses and documents
presented on-spot. This meant
the veracity and
accuracy of the MET claim forms could not be verified
on-spot.

containing

incorrect

that

and

15.11.2008

EN

Official Journal of the European Union

L 306/27

In view of this situation the exporter was informed that
pursuant to Article 18 of the basic Regulation,
it was
envisaged to base the findings and conclusions on facts
available and was given an opportunity to comment.

(51) As explained in recitals (44) to (47) above Article 18 of
the basic Regulation had to be applied to one MET
applicant as it did not provide the requested information
or provided misleading information during the on-spot
verification.

(45)

(46)

The exporter in its response essentially claimed that it did
not keep accounting documents which are not legally
it
required by the Chinese accounting law. However,
its
did not provide any documentation in support of
claim nor it did provide any justification as to why it
had not kept and provided the official documents
certified by the authorities in the PRC. Finally,
in its
comments it admitted the discrepancies found in its
responses and in the documents which were presented
on-spot.

(52)

(53)

The verification also established that five other coop­
erating exporting producers in the PRC did not meet
in
the
the
Article 2(7)(c) of the basic Regulation to be granted MET.

requirements

criteria

forth

set

of

Two exporting producers did not fulfil criterion 2 since
they could not demonstrate that their accounting records
were independently audited in line with IAS. More speci­
fically, it was found that the accounts of one exporting
producer concerning loans to related parties were not in
compliance with IAS 24 and IAS 32. In the case of the
second exporting producer its accounts carried a number
of inconsistencies and shortcomings and did not comply
with IAS 1 and IAS 38 as far as its fixed assets were
concerned.

(54) One cooperating exporter did not meet the requirements
of criteria 1 to 3. Firstly, it could not demonstrate that its
decisions were made in response to market signals and
without significant State interference because restrictions
in its purchasing and selling activities were found to exist
(criterion 1). Secondly,
it did not demonstrate that its
accounting records were audited in line with IAS,
because the fixed assets accounts were not in compliance
with IAS 1 and IAS 38 (criterion 2). Finally, distortions
carried over from the non-market economy system were
right
observed in the
evaluations (criterion 3).

improper

form of

land-use

(55) Another cooperating exporter could not demonstrate
it met criterion 1 since its decisions were not
that
made
and without
to market
significant State interference because of restrictions in
its purchasing and selling activities.

in response

signals

It was found that

(56) One cooperating exporter could not demonstrate that it
met criteria 1 and 3.
its business
decisions regarding investments were not taken without
significant
authorities
interference. The
influenced its business decisions and contributed finan­
cially to the construction of a technological centre
(criterion 1). Distortions carried over from the non-
market economy system were also observed in the
form of improper land use right evaluations (criterion 3).

State

local

(57)

they
Two cooperating exporters demonstrated that
fulfilled the criteria of Article 2(7)(c) of the basic Regu­
lation and could be granted MET. However, in view of
the comments
the MET
findings, the granting of MET for both companies will
be further investigated.

received after disclosure of

(47) Under these circumstances, the information provided by
this group of related companies was disregarded and
facts
available were used, within the meaning of
Article 18 of the basic Regulation.

4.2. Market economy treatment (MET)

(48)

Pursuant to Article 2(7)(b) of the basic Regulation,
in
anti-dumping investigations concerning imports originat­
ing in the PRC, normal value shall be determined in
accordance with paragraphs 1 to 6 of the said Article
for those exporting producers which were found to meet
the criteria laid down in Article 2(7)(c) of the basic Regu­
lation.

(49)

Briefly, and for ease of reference only, these criteria are
set out in a summarised form below:

1. business decisions and costs are made in response to
market conditions, and without significant State inter­
ference;

2. firms have one clear set of basic accounting records
which are independently audited,
in line with Inter­
national Accounting Standards (‘IAS’) and applied for
all purposes;

3. there are no significant distortions carried over from

the former non-market economy system;

4.

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

5. exchange rate conversions are carried out at

the

market rate.

(50) All

sampled companies

requested MET pursuant

to
Article 2(7)(b) of the basic Regulation and replied to
the MET claim form within the given deadlines. The
Commission sought
information
provided in the claim forms and all other information
deemed necessary at the premises of the companies in
question.

verified

and

the

L 306/28

EN

Official Journal of the European Union

15.11.2008

4.3. Individual treatment (IT)

(58)

if any,

to Article 2(7)(a) of

the basic Regulation, a
Pursuant
country-wide duty,
is established for countries
falling under that Article, except in those cases where
companies are able to demonstrate that they meet all
criteria set out in Article 9(5) of the basic Regulation
and are therefore granted individual treatment (IT).

(59)

The cooperating exporters which did not meet the MET
criteria had also claimed IT in the event that they were
not granted MET.

(60) On the basis of

information available,

it was provi­
sionally established that
the following five exporting
producers in the PRC meet all the requirements for IT
as set forth in Article 9(5) of the basic Regulation:

(65)

(66)

— Aroma Consumer Products (Hangzhou) Co., Ltd.,

— Dalian Bright Wax Co., Ltd.,

— Dalian Talent Gift Co., Ltd.,

— Gala-Candles (Dalian) Co., Ltd.,

— Qingdao Kingking Applied Chemistry Co., Ltd.

(67)

4.4. Normal value

4.4.1. Cooperating exporters granted MET

(61)

of

basic Regulation,

For the determination of normal value in accordance
with Article 2(2)
the
the
Commission first established, for each company granted
MET, whether
the product
concerned to independent customers were made in rep­
resentative volumes, i.e. whether the total volume of such
sales represented at least 5 % of the total export sales
volume of the like product to the Community during
the IP.

the domestic

sales of

(62)

In the case of one cooperating exporter its domestic sales
were found to be made in representative volumes. For
the second exporting producer granted MET, however, it
was established that it had no sales on the domestic
market.

4.4.1.1. Cooperating

exporters with

representative

domestic sales volume

(63)

The Commission subsequently identified those product
types
exporting producer
representative domestic sales volume,
having overall

sold domestically by the

(68)

(69)

which were identical or directly comparable with the
types sold for export to the Community.

(64) Domestic

sufficiently

sales of a particular product

type were
representative when the
considered as
volume of
type sold on the domestic
market to independent customers during the IP represen­
ted 5 % or more of the total volume of the comparable
product type sold for export to the Community.

that product

The Commission subsequently examined whether the
domestic sales of
the company concerned could be
considered as being made in the ordinary course of
trade pursuant to Article 2(4) of the basic Regulation.

For product types not sold in representative quantities on
the domestic market, as mentioned in recital (64) above
or not sold in the ordinary course of trade, normal value
had to be constructed on the basis of Article 2(6) of the
basic Regulation. To this end, the selling, general and
administrative
and the weighted
average profit realised by the company concerned on
domestic sales of the like product were added to its
own average cost of manufacturing during the IP.

(‘SG&A’)

expenses

4.4.1.2. Cooperating exporters without

representative

domestic sales

For one cooperating exporter granted MET domestic sales
could not be used in order to establish normal value.
Normal value was thus constructed in accordance with
Article 2(3) of the basic Regulation by adding to the
company's manufacturing
product
costs
concerned a reasonable amount
for SG&A expenses
and profit.

the

for

It was decided not to establish, the SG&A expenses and
profit on the basis of Article 2(6)(a) because only one
cooperating exporter with representative domestic sales
was granted MET. Moreover, SG&A expenses and profits
could not be established on the basis of Article 2(6)(b) as
the cooperating exporter in question did not have rep­
resentative
category of
products. SG&A expenses and profits had therefore to
be determined based on any other reasonable basis in
accordance with Article 2(6)(c) of the basic Regulation.

same general

sales of

the

In the present case, it was considered that the weighted
average SG&A expenses during the IP and a reasonable
profit of 6,5 % established on the basis of Community
industry data could be used to construct normal value for
the said cooperating exporter granted MET. The above
reasonable profit did not exceed the profit realised by the
other co-operating exporting producer granted MET on
its sales of the like product on the domestic market
during the IP.

15.11.2008

EN

Official Journal of the European Union

L 306/29

4.4.2. Exporting producers not granted MET and analogue

(76)

country

(70) According to Article 2(7)(a) of the basic Regulation, in
economies
in transition normal value for exporting
producers not granted MET has to be established on
the basis of the price or constructed value in a market
economy third country (‘analogue country’).

The sales prices of the Community producers where then
duly adjusted in order to include a reasonable profit
margin as foreseen under Article 2(7)(a) of the basic
Regulation. A reasonable profit margin of 6,5 % was
used. This margin was established on the basis of the
sampled
weighted average profit
Community producers in the first
the
period considered in which market conditions were not
influenced, to a large extent, by the imports from the
PRC.

the
two years of

achieved by

(71)

(72)

(73)

(74)

(75)

In the notice of initiation Brazil was proposed as an
appropriate analogue country for the purpose of estab­
lishing normal value in the PRC. The Commission
contacted known producers of candles in Brazil and
sent questionnaires intended to collect the data deemed
necessary for establishing normal value. However, no
cooperation was received from producers in Brazil.

4.5. Export Price

(77)

Export sales prices were established on the basis of the
prices actually paid or payable for the like product in
accordance with Article 2(8) of the basic Regulation.

The Commission continued to seek cooperation from
In this regard the
other potential analogue countries.
co-operation of producers located in market economy
such as Argentina, Canada, Chile,
countries
India,
Indonesia,
Israel, Malaysia, New Zealand, Taiwan and
Thailand was explored. However, no co-operation from
producers in any of these countries could be obtained.

Since co-operation could not be obtained from producers
in third market economy countries,
the Commission
explored any other possible reasonable basis for deter­
mining the normal value in the PRC. It was examined
whether according to Article 2(7)(a) of the basic Regu­
lation the prices for candles charged by third countries
exporters on the Community market could be used as a
basis for normal value. However, it was found that the
CN codes under which candles are imported from third
countries are not specific enough in their description and
would have not allowed for a fair and proper comparison
with the types exported from cooperating exporters in
the PRC. Accordingly, it was considered that this infor­
mation was unreliable and unrepresentative and it was
thus not reasonable to establish normal value in the PRC
on that basis.

In view of the above, it was provisionally concluded that
using the prices
in the
Community for the like product,
in accordance with
Article 2(7)(a) of
the basic Regulation, constituted a
reasonable basis for establishing normal value in the PRC.

actually paid or payable

The domestic sales of the Community producers included
in the definition of Community industry were found to
be made in representative volumes compared to the
export volume of candles to the Community by the
co-operating sampled exporting producers not granted
MET.

(78) Where export

sales

to the Community were made
through a related trading company located in the
Community, export prices were established on the basis
of the resale prices to the first independent customers in
the Community, pursuant to Article 2(9) of the basic
through
Regulation.
related
channelled
the export price
companies outside the Community,
was established on the basis of the resale prices to the
first independent customers in the Community.

sales

For

4.6. Comparison

(79)

The comparison between normal value and export price
was made on an ex-works basis.

(80)

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.

(81) On this basis, allowances for transport, ocean freight and
insurance costs, handling loading and ancillary costs,
packing costs, credit costs and commissions have been
made where applicable and justified.

(82)

For sales made through related traders based outside the
Community, an adjustment was applied in accordance
with Article 2(10)(i) of the basic Regulation, provided
it was performing
the trader could demonstrate that
functions similar to that of an agent working on a
commission basis. This adjustment was based on the
actual SG&A incurred by the related traders, plus a
profit margin established on the basis of data obtained
from unrelated traders in the Community.

L 306/30

EN

Official Journal of the European Union

15.11.2008

(83) Where applicable, an allowance was made to the export
price of the cooperating exporters concerned to reflect
the difference between the value-added tax (VAT) paid
and that reimbursed on the production and export of
candles during the IP.

4.7. Dumping margins

4.7.1. For the cooperating exporters granted MET and IT

(84)

the weighted
For the companies granted MET or IT,
average normal value of each type of
the product
concerned exported to the Community was compared
with the weighted average export price of
the corre­
sponding type of the product concerned, as provided
for in Article 2(11) and (12) of the basic Regulation.

(85) On this basis, the provisional weighted average dumping
margins expressed as a percentage of the CIF Community
frontier price, duty unpaid, are the following:

comparison was made between the total export quan­
tities indicated in the sampling replies received from all
imports
cooperating exporting producers and the total
from the PRC as derived from the Eurostat
import
statistics. The percentage of cooperation found was
46 %. On this basis,
the level of cooperation was
deemed to be low. It was, therefore, considered appro­
priate to set
the non-co-
the dumping margin for
operating exporting producers at a level higher than
the co-
the highest dumping margin established for
operating
information
exporting producers.
the low level of co-
available would suggest
the non-co-
operation could be due to the fact
operating
PRC have
generally been dumping0 at a higher level than any co-
operating exporter during the IP. The dumping margin
was therefore established at a level which corresponds to
the highest dumping and injury margins established for
representative product types.

exporting producers

that
in the

Indeed,

that

(88) On this basis, the country-wide level of dumping was
the CIF

established
provisionally
Community frontier price, duty unpaid.

66,1 % of

at

Company

Provisional
dumping margin

(89)

This duty rate was also applied to the exporting producer
to which the findings were made on the basis of facts
available as explained in recital (51) above.

Aroma Consumer Products (Hangzhou) Co.,
Ltd.

Dalian Bright Wax Co., Ltd.

Dalian Talent Gift Co., Ltd.

Gala-Candles (Dalian) Co., Ltd.

Ningbo Kwung's Home Interior & Gift Co.,
Ltd.

Ningbo Kwung's Wisdom Art & Design Co.,
Ltd.

Qingdao Kingking Applied Chemistry Co.,
Ltd.

54,9 %

12,7 %

34,8 %

18,3 %

14,0 %

0 %

16,7 %

(86)

4.7.2. For other cooperating exporters

The weighted average dumping margin of
the co-
operating exporters not
included in the sample was
in accordance with the provisions of
calculated
Article 9(6) of the basic Regulation. This margin was
established on the basis of the margins established for
the
sampled exporting producers, disregarding the
margin of the exporting producer with a zero dumping
the company to which
margin and the margin of
Article 18 of
the basic Regulation has been applied.
On this basis, the dumping margin calculated for the
co-operating companies not included in the sample was
provisionally established at 26,2 %.

(87) With regard to all other exporters in the PRC,

the
Commission first established the level of cooperation. A

5. INJURY

5.1. Community production

(90) All available information, including information provided
in the complaint and data collected from Community
producers before and after the initiation of the investi­
gation was used in order to establish total Community
production.

(91)

amount

includes

Based on this information, it was found that Community
production was around 390 000 tonnes during the IP.
the possible production of
This
producers which remained silent in the proceeding and
producers which remained neutral
in relation to the
initiation of the investigation. These producers account
for around 23 % of total Community production. It also
includes producers which were opposed to the initiation
of the investigation. These producers account for around
17 % of Community production.

5.2. Definition of the Community industry

(92)

The investigation showed that Community producers
that support the complaint and agreed to cooperate in
the investigation represented around 60 % of
total
Community production during the IP. These producers
are therefore deemed to constitute the Community
industry within the meaning of Article 4(1)
and
Article 5(4) of the basic Regulation.

15.11.2008

EN

Official Journal of the European Union

L 306/31

5.3. Community consumption

(93)

Community consumption was established on the basis of the sales volumes of the Community
industry on the Community market, plus imports from the PRC and other third countries,
according to Eurostat. It developed as follows:

Table 1

Community Consumption

2004

2005

2006

IP

Tonnes

Index

511 103

545 757

519 801

577 332

100

107

102

113

Source: Eurostat and questionnaire replies.

(94) Overall, Community consumption expanded by 13 % over the period considered. This expansion was
interrupted by a temporary decrease of 5 % between 2005 and 2006 after which consumption
recovered and increased by 11 % during the IP. The downturn in consumption in 2006 may
partly be attributed to the sharp increase in the purchase price of the main raw material used in
the production of candles, paraffin, as explained in recital (122) below.

5.4. Imports into the Community from the PRC

5.4.1. Preliminary remark

(95) As mentioned in recital

(15) above,

the investigation showed that Eurostat

import statistics

distinguish three main CN codes for declaring candles:

1. a first code including mainly plain, un-perfumed basic candle types;

2. a second code including various types of standard candles not plain and not tapered but also

handmade, seasonal candles, sets including candles, etc., and

3. a third code including tapers, night lights and like, etc.

(96)

It was observed that certain exporting producers in the PRC declared sets including candles but also
other items such as ceramic, glass, cloth and other similar decoration items under the category 2
above.

5.4.2. Volume, price and market share of dumped imports

(97) When using sampling to establish dumping it is the Commission practice to then examine whether
there is positive evidence showing whether or not all the companies which were not sampled were
effectively dumping their products on the Community market during the IP.

(98)

To investigate this issue, the Commission established the export prices charged by the co-operating
exporting producers not included in the sample and the export prices of the non-cooperating
exporters on the basis of Eurostat data, the questionnaires responses of the sampled exporting
producers in the PRC and the sampling forms provided by all the cooperating companies in the
PRC. In parallel, it was considered that by adding the average dumping margin found on the basis of
the sampled exporting producers to the average export prices established for the sampled exporting
producers found to be dumping, the level of non-dumped export prices would be set. The export
prices established for the non-sampled exporting producers were then compared with the non-
dumped export prices.

L 306/32

EN

Official Journal of the European Union

15.11.2008

(99)

(100)

This price comparison showed that both (i) the cooperating exporting producers which were not
included in the sample and (ii) the exporters which did not cooperate in the investigation had average
export prices which were in all cases below the average non-dumped prices. On this basis it was
considered that all the companies which were not sampled, namely co-operating and non-coop­
erating, were effectively dumping their products on the Community market.

It should be noted that one exporting producer in the PRC included in the sample was not found to
be dumping its products on the Community market. Accordingly, its exports should be excluded
from the analysis concerning the development of dumped imports on the Community market.
in order to avoid any possibility of disclosing sensitive business data pertaining to the
However,
said producer,
it was considered appropriate for confidentiality reasons not to present publicly
available data, such as Eurostat, excluding the data of the exporter not found to be dumping on
the Community market.

(101) The first table below, therefore, comprises all imports of candles originating in the PRC and the
second table shows the indexed data concerning the dumped imports on the Community market
during the period considered.

All imports from PRC

2004

2005

2006

IP

Table 2a

Imports (tonnes)

Index

Prices (EUR/tonne)

Index

Market share

Index

Source: Eurostat.

147 530

177 662

168 986

199 112

100

1 486

100

28,9 %

100

120

1 518

102

32,6 %

113

115

1 678

113

32,5 %

112

135

1 599

108

34,5 %

119

(102) Overall, imports from the PRC significantly increased from 147 530 tonnes in 2004 to 199 112
tonnes in the IP,
i.e. by 35 % or by more than 51 000 tonnes over the period considered. The
increase of the corresponding market share (+5,6 percentage points) was less pronounced because of
the increase in Community consumption.

(103)

In line with the remarks made in recital (96) above, the investigation showed that the average price of
imports from the PRC and the trends observed were influenced to a certain extent by the fact that
certain products declared as candles include the value of sets with ceramic, glass, carton or other
packaging materials.

Dumped imports PRC

2004

2005

2006

IP

Table 2b

Imports (tonnes)

Index

Prices (EUR/tonne)

Index

Market share

Index

Source: Eurostat and questionnaire replies.

100

100

100

120

103

112

115

114

113

136

110

121

15.11.2008

EN

Official Journal of the European Union

L 306/33

(104) The dumped imports volumes from the PRC also increased significantly by 36 % over the period
considered. The increase of the corresponding market share was less pronounced because of the
increase in Community consumption. Eurostat data shows that the sales volume of dumped imports
and thus market share were mainly gained in the first CN code, which includes the core product of
the Community industry, and which represents a large share of exports from the PRC. In addition, it
was found that despite a general downturn in consumption in the period between 2005 and 2006,
the imports did not lose practically any share of the market they were holding.

(105) Average prices for dumped imports from the PRC showed an increase of 10 % during the period
considered but were still made at significant dumping, namely 38 % on average, during the IP. The
average price of dumped imports decreased by over 3 % between 2006 and the IP and, as explained
below, was undercutting the Community industry prices in that period.

5.4.3. Price undercutting

(106) For the purposes of analysing price undercutting, the weighted average sales prices per product type
of the Community industry to unrelated customers on the Community market, adjusted to an ex-
works level, were compared to the corresponding weighted average prices of the imports concerned
to the first independent customer, established on a CIF basis with an appropriate adjustment for post-
importation costs.

(107) Based on the above methodology, the difference between the above mentioned prices, expressed as a
percentage of the Community industry's weighted average price (ex-works), showed a price under­
cutting margin of 9 % on average.

(108)

It was also found that the undercutting of the core product of the Community industry was higher
compared to that calculated for the other types of candles, namely 12,1 %. This further demonstrates
the price pressure exerted by low-priced dumped imports during the IP on the Community industry.

5.5. Economic situation of the Community industry

5.5.1. Preliminary remarks

(109)

In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped
imports on the Community industry included an evaluation of all economic indicators relevant to the
assessment of the state of the Community industry from 2004 to the end of the IP.

(110) As mentioned in recital

(31) above,

the largest production criterion as foreseen in Article 17(1) of

in view of the large number of producers supporting the
complaint,
it was decided to apply sampling for the purpose of the injury investigation. It was
originally considered to include eight producers or groups of producers in the sample on the
the basic Regulation.
basis of
However, one Community producer which was encountering serious financial difficulties and two
other Community producers, although fully supporting the complaint, could not offer full cooper­
ation in the investigation. The remaining five producers, or groups of producers had during the IP a
production volume representing 44 % of the total production of the co-operating companies. Thus,
they were deemed to be representative for the purpose of the sample.

L 306/34

EN

Official Journal of the European Union

15.11.2008

(111) When applying sampling in the context of

the injury investigation,

the
Commission to establish the injury indicators partly on the basis of the sampled producers and
partly on the basis of data pertaining to all
the
Community industry. The economic factors and indices related to company performance, such as
prices, wages, profitability, cash flow, investment and return on investment, and the ability to raise
capital, have been established on the basis of information obtained from the sampled companies. The
volume factors such as production, production capacity and capacity utilisation, productivity, sales
volume and market share, inventories, employment, growth, and magnitude of the dumping margin
have been established at the level of the Community industry as a whole.

the producers included in the definition of

is the practice of

it

5.5.2. Production, production capacity and capacity utilisation

Table 3

2004

2005

2006

IP

Production (tonnes)

224 153

229 917

212 017

229 110

Index

100

103

95

102

Production capacity (tonnes)

279 362

281 023

291 902

301 327

Index

Capacity Utilisation

Index

Source: Questionnaire replies.

100

80 %

100

101

82 %

102

104

73 %

91

108

76 %

95

(112) The investigation showed that one of the core products of the Community industry is the so-called
tea light candle. It represents around 50 % of the production of the producers included in the
definition of the Community industry.

(113) As shown in the above table, the production of the Community industry increased slightly by 2 %
over the period considered. The 8 % decrease in production observed between 2005 and 2006 was
recovered during the IP in line with an increase of Community consumption by 11 %. The
Community industry steadily increased its production capacity to around 300 000 tonnes during
the IP but the utilisation of the available capacity was lower during the IP. Given that production is
rather seasonal in the industry, full utilisation of capacity cannot be achieved over the year, however,
the capacity utilisation of 76 % achieved during the IP was relatively low compared to 2004 and
2005 levels.

5.5.3. Sales volume and market share

Table 4

Sales volume

2004

2005

2006

IP

Tonnes

Index

Market share

Index

Source: Questionnaire replies.

203 388

202 993

193 524

208 475

100

39,8 %

100

100

37,2 %

93

95

37,2 %

93

103

36,1 %

91

15.11.2008

EN

Official Journal of the European Union

L 306/35

(114) Sales volume of the product concerned by the Community industry to independent customers,
mainly large retailers and distributors, on the Community market increased by 3 % during the IP
compared to 2004. In line with the relatively low level of consumption in 2006 sales volume
decreased by 5 % between 2005 and in 2006 but recovered during the IP in line with the
recovery of Community consumption.

(115) However,

it was observed that the Community industry could not fully follow the expansion of
Community consumption by 13 % over the period considered and in particular in the period 2005-
2006 when the market grew by 11 %. As a consequence its market share decreased by 3,7
percentage point, from 39,8 % to 36,1 % during the IP.

5.5.4. Average unit prices of the Community industry

(116) Average ex-works sales prices to unrelated customers in the Community market decreased by 9 %

over the period considered. This decrease occurred gradually over the period considered.

Table 5

2004

1 613

100

2005

1 565

97

2006

1 496

93

IP

1 460

91

Average price euro per tonne

Index

Source: Questionnaire replies.

(117) The above table shows that the price of the Community industry also decreased in the period from

2006 to the IP despite an increasing demand on the Community market.

5.5.5. Stocks

(118) The level of end of year stocks, which represents on average around 25 % of production, could be

considered to be high during the period considered.

Table 6

2004

2005

2006

IP

52 742

76 643

53 814

56 189

100

25 %

100

145

33 %

132

102

25 %

100

107

24 %

96

Stocks

Index

Stocks in % of production

Index

Source: Questionnaire replies.

(119) The high stock level can however be explained by the seasonality of the product concerned, the fact
that the types produced by the Community industry are mainly standard types and because of the
wide range of products which exist and which should remain available to customers. Stock level was
even higher in 2005 when, based on the negative evolution of sales volume compared to 2004, more
stocks have been built up during the year. The slowdown of sales by the end of 2005 consequently
led to high stock levels. It is not considered however that the inventories are a relevant injury
indicator in the present case.

L 306/36

EN

Official Journal of the European Union

15.11.2008

5.5.6. Employment, wages and productivity

Employment — full-time equivalent
(FTE)

Index

Table 7

2004

5 418

100

2005

5 686

105

2006

5 089

94

IP

4 699

87

Labour cost (EUR/FTE)

19 404

16 568

19 956

21 073

Index

Productivity (tonne/FTE)

Index

Source: Questionnaire replies.

100

52

100

85

49

94

103

57

110

109

64

123

(120) The relatively high level of employment in 2005 was, mainly due to the hiring of temporary workers
to cope with increased demand in that year. However, employment was reduced drastically from
2006 onwards and at the end of the IP, it was 13 % lower than in 2004. The increase in average
labour cost was limited to 9 % during the period considered.

(121) The increase of the labour force caused a slight drop in productivity in 2005, but the labour force
made redundant during 2006 allowed for an increase in productivity even though production
volumes decreased by 8 % between 2005 and 2006. The combination of higher sales and production
volumes and in particular the lower employment explains the 23 % increase in productivity during
the IP compared to 2004.

5.5.7. Cost of production

Full cost of production (EUR/tonne)

Index

Source: Questionnaire replies.

Table 8

2004

1 502

100

2005

1 468

98

2006

1 695

113

IP

1 468

98

(122)

It is worth noting that the raw materials, mainly paraffin, represent around 50 % of the cost of
production (COP). The above table shows that, apart from 2006, the COP remained stable over the
period considered. The increase in 2006 is explained by the significant increase in paraffin prices
between 2005 and 2006. The Community industry countered this sudden paraffin price increase by
substituting, where technically possible paraffin with stearin. The stearin prices remained indeed more
stable up to 2006 and were below paraffin prices even during the IP.

(123)

In addition, the investigation showed that the Community industry rationalised its production which
was partly shifted to Member States in the European Community and at the same time had to reduce
employment drastically, in particular from 2006 onwards, to reduce costs.

(124) The combination of all these factors led to a situation where the Community industry managed to

keep its COP during the IP to levels comparable to 2004.

15.11.2008

EN

Official Journal of the European Union

L 306/37

5.5.8. Profitability, cash flow, investments, return on investment and ability to raise capital

Table 9

Profitability

Index

Cash flow (1 000 EUR)

Index

Investments (1 000 EUR)

Index

Return on investments

Index

Source: Questionnaire replies.

2004

6,9 %

100

16 215

100

5 435

100

5,7 %

100

2005

6,2 %

90

13 732

85

8 876

163

4,9 %

86

2006

– 13,3 %
– 193

– 4 618
– 28

12 058

222

– 10,7 %
– 188

IP

– 0,6 %
– 9

3 093

19

7 326

135

– 0,1 %
– 2

(125) Profitability of the Community industry was established
by expressing the pre-tax net profit of the sales of the
like product as a percentage to the turnover of these
sales. Over the period considered the profitability of
the Community industry decreased from a profit of
6,9 % in 2004 to a loss of 0,6 % in the IP. Whilst the
profitability of the Community industry in 2004 and
2005 was good, the situation dramatically changed in
2006 due to a combination of
factors such as the
increase in the COP and the reduction in sales prices.
Although the average sales price
further decreased
during the IP, the reduction of the COP allowed for a
result close to breakeven in that period.

5.5.9. Growth

(128) The sales of the Community industry between 2004 and
the IP in the Community market increased by 3 %, but
the Community industry could not
fully follow the
expansion of Community consumption which reached
13 %. As a consequence, market share decreased by
almost 3,7 percentage points.

5.5.10. Magnitude of the actual margin of dumping

(126) The trend shown by the cash flow, which is the ability of
the industry to self-finance its activities, reflects to a large
extent the evolution of profitability. Although cash flow
returned to a positive situation during the IP, it was at a
much lower level than during 2004 and 2005. The same
comments can be made about the return on investments
which was negative both in 2006 and during the IP.

(127) Despite the difficult situation, the Community industry
continued to invest over the period considered. This
suggests that
ready to give up
production but considers the sector to be viable. The
level of investments illustrates that the sector has the
ability to raise the necessary capital.

the industry is not

the dumping margins,

(129) One sampled exporting producer in the PRC representing
a limited volume of exports to the Community was not
found to be dumping its products on the Community
market. For all the other sampled exporting producers
however,
specified in recitals
(84) to (89), above are significantly above de minimis.
(99) above, all other exporting
As explained in recital
producers in the PRC not included in the sample, coop­
erating and non-cooperating, were
assumed to be
dumping on the Community market. Given the
the
volumes and the prices of
impact of the actual margin of dumping, established at
48 % on average, cannot be considered to be negligible.

the dumped imports,

5.6. Conclusion on injury

(130) Over

the period considered it was

the
performance of the Community industry improved as
such as production
regards
(+ 2 %),
productivity
(+ 23 %) and sales volume (+ 3 %).

some volume indicators

found that

production

capacity

(+ 8 %),

L 306/38

EN

Official Journal of the European Union

15.11.2008

industry

the indicators
the Community

related to the financial
(131) However, all
situation of
significantly
worsened during the period considered. Notwithstanding
the Community industry's ability to raise capital
for
investments, return on investments became negative in
the IP and cash flow declined by 81 % over the period
considered. Average sales prices decreased by 9 % and
profitability decreased from almost 6,9 % in 2004 to a
loss of 0,6 % during the IP.

dumped prices on the Community market during the
IP. As mentioned in recital (129) above,
it was found
that the co-operating exporting producers in the PRC
were selling the product concerned with an average
dumping margin of 26,2 %. It should also be outlined
that around 55 % of Chinese exporters did not cooperate
in the investigation. There is positive evidence showing
that these exporters were dumping more than those who
cooperated in the investigation.

(132) Moreover, other

injury indicators pertaining to the
Community industry also developed negatively during
the period considered: capacity utilisation fell by 4 %,
stocks increased by 7 % and employment fell by 13 %.
The market share held by the Community industry also
decreased from 39,8 % in 2004 to 36,1 %, namely by
3,7 percentage points. The Community industry was
prevented from benefitting from the 13 % market
increase as it could only increase its sales volume by 3 %.

(133) The analysis of the costs, including raw material costs,
showed that, despite a sharp increase in the price of the
main raw materials, the Community industry managed to
maintain unit costs in the IP at the 2004-2005 levels.
However, despite an 11 % increase in demand between
2006 and the IP, sales prices decreased by 3 % and
employment was drastically reduced. Profitability still
remained negative during the IP.

(134)

In the light of the foregoing, it can be concluded that the
Community industry suffered material injury within the
meaning of Article 3(5) of the basic Regulation.

(137) Dumped imports increased in volume by 36 % on the
Community market during the period considered. This
increase was made at significantly dumped prices under­
cutting on average by 9 % the prices of the Community
industry during the IP. As explained in recital
(108)
above the investigation revealed that undercutting by
dumped imports was even more pronounced, namely
12,1 % in the core market segment of the Community
industry. Accordingly, the market share held by exporters
practicing dumping grew from around 27,5 % to around
33 %, an increase of more than 5 percentage points
during the IP.

(138) Based on the Eurostat import statistics it appears that
dumped imports increased relatively more in the cate­
gories which include the core products produced and
sold by the Community industry. Dumped imports in
this segment of the market rose by 46 % and around
3,5 percentage points of market share were gained by
dumped imports in that segment. This evolution should
be seen in the light of the overall significant price under­
cutting and price pressure exercised by dumped imports
on the Community market.

6. CAUSALITY

6.1. Introduction

(135)

it was

examined whether

In accordance with Articles 3(6) and 3(7) of the basic
Regulation,
the dumped
imports of candles originating in the PRC have caused
injury to the Community industry to a degree that
enables it to be classified as material. Known factors
other than the dumped imports, which could at
the
same time be injuring the Community industry, were
also examined to ensure that possible injury caused by
these other factors was not attributed to the dumped
imports.

6.2. Effect of the dumped imports

(136) The investigation showed that the candles exported from
the PRC to the Community were sold at significantly

(139) At the same time, the Community industry sales volume
increase in
increased only by 3 % despite an overall
its market share
consumption by 13 %. Accordingly,
shrunk over
the period considered from 39,8 % to
36,1 %, namely a loss of 3,7 percentage points of
market share.

(140) Moreover, it was observed that in 2006 the performances
of the Community industry were particularly negative as
they incurred significant losses compared to 2005. This
situation coincided with the continued presence of high
low-priced imports from the PRC on the
volumes of
Community market and a 5 % decrease in Community
consumption.
the
volume
Community decreased at
the same pace as dumped
imports, while the Community industry's prices fell by
5 % to follow the price level of dumped imports.

overall

sales

The

of

15.11.2008

EN

Official Journal of the European Union

L 306/39

(141) Considering the period from 2006 to the end of the IP, it
emerged that consumption increased by 11 %. The
Community industry managed to increase its
sales
volume by 8 % but dumped imports increased signifi­
cantly more (+18 %) overall. At the same time, prices
of dumped imports fell by over 3 %. The Community
industry could not benefit
the
market and the reduced COP. Instead, it had to follow
the decreasing trend in sales price and further decreased
its prices by 2,5 % during the IP adding further losses to
those incurred in 2006.

from the growth of

6.3. Effect of other factors

6.3.1. Development of demand

(143) As mentioned in recital

(94) above,

the Community
consumption of candles increased by 13 % between
this allowed the Community
2004 and the IP. As
industry to operate
the
material
injury suffered by the Community industry
cannot be attributed to the evolution of consumption
on the Community market.

in an expanding market,

(142)

It is considered that the continued pressure exercised by
low-priced dumped imports on the Community market
did not allow the Community industry to set its sales
prices in line with its costs during the IP. This explains
the loss in market share, the low level of sales prices and
of the negative profitability achieved by the Community
is therefore provisionally
It
industry in that period.
low-priced dumped
surge of
concluded that
imports
from the PRC had a considerable negative
impact on the economic situation of the Community
industry during the IP.

the

6.3.2. Non-dumped imports

(144) The investigation showed that the imports which were
not found to be dumped were sold in the Community
market at a relatively high price. Accordingly,
it was
considered that these imports did not contribute to the
low level of sales prices and the injury suffered by the
Community industry.

6.3.3. Imports from other third countries

(145) The trends in import volumes and prices from other
third countries between 2004 and the IP were as follows:

Other third country

2004

2005

2006

IP

Table 10

Total imports (tonnes)

Index

Market share

Index

Price (EUR/tonne)

Index

Source: Eurostat.

18 189

100

3,6 %

100

2 643

100

19 723

108

3,6 %

100

2 690

102

18 031

99

3,5 %

97

3 028

115

19 447

107

3,4 %

94

3 207

121

(146) The import volumes from third countries not concerned
by this investigation increased by 7 % over the period
considered but remained at a modest level during the
IP. These probably mainly consist in high value niche
products imported in particular from the United States
of America
in
Community consumption was more pronounced led to
a loss of market share of 0,2 percentage points during
the IP. The prices of these imports which were relatively
high during the period considered increased by 21 %
over that period.

(USA). The

increase

that

fact

the

6.3.4. Producers in the Community not included in the

definition of the Community industry

(148) As suggested in recital

(92) above,

the information
available on the market for candles in the Community
indicates that producers representing around 40 % of
Community production are not included in the definition
of Community industry in this investigation.

(147) On the basis of the above, it was provisionally concluded
these imports did not contribute to the material injury of
the Community industry.

(149) Certain Community producers, representing around 17 %
of Community production, were opposed to the
initiation of
investigation, because most were
importing relatively large quantities of candles from the
PRC. The impact of their imports from the PRC has been

the

L 306/40

EN

Official Journal of the European Union

15.11.2008

in the analysis of

the effect of
taken into account
dumped imports from the PRC made in recitals (136)
to (142) above. The remaining Community producers,
representing 23 % of Community production, either
were silent or neutral concerning the initiation of the
present investigation.

their range of products. However, the purchases made
during the IP were found to be low, namely less than
5 %, compared to the sales volume of the Community
producers concerned.

(150) The analysis of data pertaining to the Community market
suggested that all the other Community producers did
not gain but lost market share on the sales of their
own production during the period considered. The inves­
to any particular problem
tigation did not point
concerning
between Community
producers, on the own-produced candles, or to any
trade distorting effect which may explain the material
injury found for the Community industry.

competition

the

(151) Based on the above, it was provisionally concluded that
the
the producers not
Community industry did not contribute to the injury
suffered by the Community industry.

included in the definition of

6.3.5. Export performance of the Community industry

(152) Based on Eurostat and questionnaire replies from the
sampled Community producers, total exports of candles
outside the Community by the Community producers
increased by 10 % over the period considered, namely
from 47 701 tonnes in 2004 to 52 565 tonnes during
the IP. The main export markets are Norway, Switzerland
and the USA, where the price levels are in general rela­
tively
the
investigation
Community industry managed to increase its exports to
third countries,
in particular between 2005 and 2006,
when Community consumption decreased by 5 %. This
relatively good export performance was particularly bene­
ficial during the IP.

showed

high.

that

The

(156) On that basis,

it was provisionally concluded that the
the product
the Community industry of
imports of
concerned from the PRC have not contributed to the
material injury they suffered during the IP.

6.3.7. Relocation of production by the Community industry

(157) Certain interested parties attributed the losses of capacity
utilisation and market share incurred by the Community
industry to the fact that they have relocated part of their
production to other Member States in the Community, in
particular in 2006. Moreover, they attributed the decrease
in sales prices to the conditions of competition prevailing
in these Member States where there is allegedly more
pressure on sales prices.

(158) The investigation showed that the production capacity of
the Community, did not decrease, but steadily increased
by 8 % during the period considered. In addition, it was
found that the main increases in capacity were observed
in the periods starting in 2006 and during the IP. Finally,
it was also found that both the production and sales
volume of the Community industry increased by 8 %
between 2006 and the IP. Accordingly,
the claim is
contradicted by the findings of the investigation which
in production capacity,
showed that
production and stocks. As mentioned in recital
(115)
above,
suffered by the
in market
Community industry was due to the fact that it could
not fully benefit from the growth of the market that
occurred in that period.

an increase

share

loss

the

(153)

it is considered that the export
In view of the above,
performance of
the Community industry has not
contributed to the injury suffered by that industry in
the IP.

6.3.6. Imports of candles by the Community industry

(154) Some interested parties have claimed that the imports of
candles from the PRC by the Community industry were a
source of self-inflicted injury.

(159) Furthermore,

it was shown in recitals (122) to (124)
above that the restructuring actions undertaken by the
Community industry in particular in 2006 led to a
substantial decrease of 14 % of
its average COP in
particular during the IP. There is no indication in the
investigation that the Community industry significantly
changed its mix of customers in the Community as
alleged by the parties in question. Rather it is considered
that the price pressure exerted by low price dumped
imports from the PRC led to a low level of prices for
candles on the Community market.

(155) The investigation showed that some producers included
in the definition of the Community industry imported
candles originating in the PRC in order to complement

(160) On that basis, the investigation did not point to a link
between the relocation of production undertaken by the
Community industry and the material injury it suffered
during the IP.

15.11.2008

EN

Official Journal of the European Union

L 306/41

6.3.8. Impact of the existence of a cartel among European

paraffin wax producers

(161) Certain parties claimed that the injury suffered by the
Community industry was caused by the price increase
in the main raw material, namely paraffin which
occurred on the Community market. More specifically,
they referred to a statement of objection issued by the
the European
Directorate General
cartel
Commission (DG Competition)
amongst European paraffin wax producers was alleged
to exist up to the beginning of 2005. Accordingly the
parties asked the Commission to carefully examine the
facts and follow any new developments in connexion
economic
with the
situation of the Community industry.

for Competition of

cartel on the

in which a

impact of

the

(162) The investigation showed that the increase in the paraffin
price did not only affect the Community market but also
other markets in the world as the evolution of paraffin,
an oil derivative, is closely linked to the evolution of the
oil price.

(163) Moreover as explained in recitals (122) to (124) above,
its costs
the Community industry managed to control
during
increase was
then IP. The paraffin price
countered by substituting paraffin with stearin. The
Community industry also rationalised its production
and managed to significantly reduce its costs which
during the IP were kept to levels comparable to 2004
and 2005.

(164) DG Competition has indeed conducted an investigation
into the alleged existence of a cartel between certain
producers of paraffin wax, the main raw material for
the Community candle industry and officially issued its
findings at the beginning of October 2008.

(165) A first analysis of these findings in relation to the current
anti-dumping investigation indicates that the Community
industry sourced approximately one third of its paraffin
needs from companies participating in the cartel during
the IP, namely in 2007. The data verified during that
average price of paraffin
period shows
purchased from companies participating in the cartel is
in the same range as prices of paraffin purchased from
other suppliers in the Community. It is also worth noting
that the prices of paraffin purchased by the Community
industry were found to be in line with the prices of
paraffin in the PRC, the only information available on
non-EU prices at this stage of the investigation.

that

the

that the year 2004 is not suitable or representative for
the analysis of injury and causal link on the grounds of
the existence of a cartel in that year.

(167) Considering that it is not unreasonable to assume that
the cartel ceased to exist when the investigation of DG
Competition started, namely at the beginning of 2005,
the
the trends concerning the economic situation of
Community industry, when the cartel was still existing,
namely in 2004, and after when the cartel ceased to
exist, namely in 2005, were compared. This comparison
indicates that the trends concerning the injury picture of
the Community industry remains approximately the
same. Taking into account
the
injury indicators between 2005 and the IP would
therefore not alter the injury picture and the conclusions
reached in recitals (130) to (134) above.

the developments of

(168) Accordingly, based on information which is currently
it would appear that the increase in the raw
available,
material costs and the cartel could not have had a
material
the
Community industry which was examined in depth
from 2004 up to the end of 2007.

impact on the economic situation of

(169) The possible impact the cartel may have had on the
Community market will nevertheless be further inves­
tigated in the remainder of the investigation.

6.4. Conclusion on causation

(170) The above analysis has demonstrated that there was a
substantial increase in the volume and market share of
the low-priced dumped imports originating in the PRC
between 2004 and the IP. In addition, it was found that
these imports were made at significantly dumped prices
charged by the
which were far below the prices
Community industry on the Community market
for
similar product types.

(171) This increase in volume and market share of the low-
priced dumped imports from the PRC coincided with an
overall
increase of the demand in the Community but
also with the negative development of sales prices, a
significant drop in the market share of the Community
industry and a deterioration of
the main indicators
pertaining to its economic situation during the IP. The
Community industry made substantial
losses in 2006
and remained loss-making during the IP.

(166) DG Competition initiated its investigation early April
2005 and the period considered for the current investi­
gation included slightly more than a year during which
the cartel was found to exist. It could therefore be argued

(172) The examination of the other known factors which could
have caused injury to the Community industry revealed
that none of these could have had a significant negative
impact on that industry in particular during the IP.

L 306/42

EN

Official Journal of the European Union

15.11.2008

(173) Based on the above analysis, which has properly distin­
guished and separated the effects of all known factors on
the Community industry from the
the situation of
injurious effects of
is provi­
sionally concluded that the imports from the PRC have
caused material injury to the Community industry within
the meaning of Article 3(6) of the basic Regulation.

the dumped imports,

it

7. COMMUNITY INTEREST

7.1. Preliminary remark

(174)

the

provisional

compelling reasons

examined whether, despite

In accordance with Article 21 of the basic Regulation, it
conclusion on
was
injurious dumping,
existed for
concluding that it is not in the Community interest to
adopt
in this
particular case. The analysis of the Community interest
was based on an appreciation of all the various interests
involved, including those of the Community industry, the
raw material suppliers, the importers and the consumers
of the product concerned.

anti-dumping measures

allow this industry to quickly reach an acceptable level of
profitability. In addition, the proposed measures will very
likely put the Community industry in the position to
regain at least part of the market share lost during the
period considered with a further positive impact on its
economic situation and profitability.

7.3. Importers

(179) A total of six replies to the importers' questionnaire were
received, of which only two could be considered to be
meaningful for the purpose of the Community interest
analysis.

(180) The two importers that submitted meaningful replies and
cooperated in the investigation were against the impo­
importers
sition of
anti-dumping measures. These
accounted for around 3 % of
imports of
candles from the PRC into the Community and 1 % of
the Community consumption of candles during the IP.
The turnover concerning the trade of candles corre­
sponds to 3,4 % of the companies' activity.

the total

7.2. Community industry

(175) The Community industry is composed of numerous
small and medium size producers located throughout
the Community,
around 5 000
employing directly
people and sourcing most of
its raw material needs
from Community suppliers. This means that there are
many companies in the Community which depend on
this industry. This broadens the economic implication of
the candle industry and in particular its impact on the
employment in the Community.

(181)

(176) The Community industry has continued to make efforts
to raise capital and to invest in modernisation and auto­
mation of production processes in order
to remain
competitive.
It was also observed that considerable
efforts were made to restructure production, and to
reduce costs. This shows that the industry is viable and
not ready to abandon production.

(177)

It is considered that the non-imposition of provisional
anti-dumping measures would lead to a further dete­
rioration of the economic situation of the Community
industry, thus undermining the efforts, in particular the
investments, made in recent years. In the short term this
would imply company closures, not only in the candle
but also likely in the upstream industry and subsequent
job losses in the Community.

It was found that the gross margin realised by these
importers on candles purchased from the PRC during
the IP was between 15 to 25 % during the IP as they
are mainly selling to distributors on the Community
market. The direct impact of the introduction of provi­
sional anti-dumping measures may thus not be negligible
for these two cooperating importers if they cannot pass
on the possible impact of measures to their customers.
The investigation showed that the prices for candles to
such as distributors were relatively
large customers
depressed during
retailers were
that
achieving comfortable gross margins even on the retail
of basic products. On that basis, it is considered that at
least part or any purchase price increase due to anti-
dumping measures could be passed on the various step
of the distribution chain up to the level of retailers.

IP but

the

(182)

In view of the small share the candle business represents
on the turnover of the co-operating importers, i.e. only
3,4 %, and the likelihood that the importers would be
able to pass at least part of any price increases further
down the distribution chain, it is provisionally considered
that the impact of the provisional measures on their
financial situation will not be significant.

(178)

It is expected that following the imposition of provisional
anti-dumping duties, the price level of candles in the
Community market would increase and would allow
for a restoration of profitability of
the Community
industry. A price increase of 7 % would be sufficient to

(183) Large retail groups, which imported large quantities of
candles, during the IP, either did not offer to cooperate
or submitted replies which were not meaningful for the
analysis of the Community interest. It has therefore not
been possible to accurately assess the full impact of the
proposed anti-dumping measures on the profitability of
these groups based on verified data.

15.11.2008

EN

Official Journal of the European Union

L 306/43

for

(184) However, despite the lack of cooperation from these
parties, the Commission searched publicly available infor­
mation regarding the retail prices of candles and,
in
particular,
tea lights and made an assessment
concerning the possible impact of the provisional anti-
dumping measurers may have on retailers. Tea lights
covered up a large share of both the exports from the
PRC and the Community industry’s sales during the IP.
Subsequently, the average duty payable on imports of
candles imported from the PRC as well as the possible
price increase for tea lights produced by the Community
industry were compared.

(190) As explained in recitals (185) and (186) the retailers and
in particular the large retail groups are achieving such
high gross margins which are at a level that they should
be able to absorb the provisional anti-dumping measures
without passing any price increase to consumers.

(191)

In these circumstances,
it was provisionally concluded
that there should be no material impact for consumers.

(185) Based on public information,

this means that

it was found that large
retailers are achieving comfortable gross profit margins
of several hundred percent in their candle business. In
for a pack of basic
practical
terms,
candles
sold at an indexed retail price of 100 to
consumers the gross margin of retailers could be as
high as an index of 70. Based on verified data the
indexed price for the same pack imported from the
PRC would be 30 and the imposition of provisional
anti-dumping measures would lead to a duty indexed
of 4 taking into account the respective market share of
the dumped imports.

(186)

If the large retailers would purchase the same pack of
candles directly from the Community industry,
their
the price
gross margin would remain high even if
increase mentioned in recital (178) above would mate­
rialise. The purchase price of the pack in an indexed form
would be around 35 for the retailers.

(187) This analysis leads to the conclusion that the impact, if
any, the provisional measures may have on the retail
companies would be very limited. There are indications
that they could even be able to absorb most of the
proposed measures without passing it to the consumers
and without affecting their profit margin in a significant
way.

(188) Under

these

circumstances,

it was

concluded that, on the basis of
available,
any, will most
importers.

the effect of

likely not have a material

the

the anti-dumping measures,

provisionally
information
if
impact on

7.4. Consumers

(189) Although candles are a typical consumer product, no
cooperation was received from associations representing
the interests of consumers. The potential impact the pro­
visional
on
Community consumers was nevertheless examined in
the light of data collected for the large retail groups in
the Community.

anti-dumping measures may

have

7.5. Suppliers of raw materials

(192) One supplier of paraffin wax came forward and replied
raw
to the questionnaire intended for
materials used in the candle production.
It is recalled
that paraffin can represent up to 50 % of the COP of
the product concerned.

suppliers of

(193) As mentioned in recital (175) above, the future situation
of the Community industry is likely to affect positively
is
the
concluded
anti-dumping
measures is not against the interest of the raw material
suppliers.

raw materials. Provisionally,
the

suppliers of
that

imposition

of

it

7.6. Competition and trade distorting effects

(194) With respect to the Community market, if anti-dumping
measures are imposed, the Chinese exporting producers
concerned, given their strong market positions, will likely
continue to sell their products, albeit at non-dumped
prices. Given the large number of Community and
Chinese producers,
it is also likely that there will still
be a sufficient number of major competitors on the
Community market. It is therefore likely that importers,
be they traders, distributors or retailers, and thus the
consumers will continue to have the choice of different
suppliers of candles.

(195)

If, however, no measures were to be imposed, the future
of the Community industry which held an important
share of market would be at stake in the short and
medium term. Allowing dumped imports from the PRC
to enter the Community market without correcting the
trade distorting effects could lead to the disappearance of
many Community producers, thus less choice for the
various operators, reduced competition and loss of a
significant number of jobs on the Community market.

7.7. Conclusion on Community interest

(196) Given the above, it is provisionally concluded that there
are no compelling reasons against the imposition of pro­
visional anti-dumping measures in the present case.

L 306/44

EN

Official Journal of the European Union

15.11.2008

8. PROPOSAL
MEASURES

FOR PROVISIONAL ANTI-DUMPING

8.1. Injury elimination level

(197)

the conclusions reached with regard to
In view of
dumping, injury, causation and Community interest, pro­
visional anti-dumping measures should be imposed in
order to prevent
further injury being caused to the
Community industry by the dumped imports.

(198)

In order to establish the level of duty, account has been
taken of the level of the dumping margins found and of
the amount of duty necessary to eliminate the injury
suffered by the Community industry.

(199) Based on the data of the investigation it is considered
that the profit that could be achieved in the absence of
dumped imports should be based on the years 2004 and
2005 when the Community industry managed to reach
profitable levels and when Chinese imports were less
present on the Community market. It is thus considered
that a profit margin of 6,5 % of
turnover could be
regarded as
an appropriate minimum which the
Community industry could have expected to obtain in
the absence of injurious dumping. The necessary price
increase was
a
comparison, per product type, of the weighted average
import price of the sample exporting producers in the
PRC, with the non-injurious price of the product types
sold by the Community industry on the Community
market during the IP. The non-injurious price has been
obtained by adding to the cost of production of the
Community
above mentioned profit
margin of 6,5 %. Any difference resulting from this
comparison was then expressed as a percentage of the
CIF import value of the compared types.

then determined on the basis of

industry

the

specifically mentioned, cannot benefit from these rates
and shall be subject to the duty rate applicable to ‘all
other companies’.

(202) The dumping and injury margins established are as

follows:

Company

Aroma Consumer Products
(Hangzhou) Co., Ltd.

Dalian Bright Wax Co., Ltd.

Dalian Talent Gift Co., Ltd.

Gala-Candles (Dalian) Co., Ltd.

Ningbo Kwung's Home Interior &
Gift Co., Ltd.

Ningbo Kwung's Wisdom Art &
Design Co., Ltd.

Qingdao Kingking Applied
Chemistry Co., Ltd.

Co-operating non-sampled
companies

Dumping
margin

Injury margin

54,9 %

68,0 %

12,7 %

34,8 %

18,3 %

14,0 %

0 %

16,7 %

5,2 %

24,3 %

13,2 %

0 %

N/A

0 %

26,2 %

26,8 %

All other companies

66,1 %

62,8 %

(203)

In view of the fact that very often candles are imported
in sets together with pillars, holders or other items, it was
considered appropriate to determine the duties as fixed
amounts on the basis of fuel content of the candles,
including the wick as for
this reason this form of
measure appears appropriate for the product concerned.

8.2. Provisional measures

9. DISCLOSURE

(200)

it is considered that,

in
In the light of the foregoing,
accordance with Article 7(2) of
the basic Regulation,
provisional anti-dumping duties should be imposed in
respect of imports originating in the PRC at the level
of the lower of the dumping and the injury margins,
in accordance with the lesser duty rule.

(204) The above provisional findings will be disclosed to all
interested parties which will be invited to make their
views known in writing and request a hearing. Their
comments will be analysed and taken into consideration
where warranted before any definitive determinations are
made. The provisional findings may have to be recon­
sidered for the purposes of any definitive findings;

(201) The

the

duty

company

individual

findings of

the present

anti-dumping

(as opposed to the

rates
specified in this Regulation were established on the
basis of
investigation.
Therefore, they reflect the situation found during that
to these companies. These
investigation with respect
duty rates
country-wide duty
applicable to ‘all other companies’) are thus exclusively
applicable to imports of products originating in the
country concerned and produced by the companies and
thus by the specific legal entities mentioned. Imported
products produced by any other company not specifically
mentioned in the operative part of this Regulation with
its name and address, including entities related to those

HAS ADOPTED THIS REGULATION:

Article 1

A provisional anti-dumping duty is hereby imposed on
1.
imports of candles, tapers and the like, other than memory
lights and other outdoor burners,,
falling within CN codes
ex 3406 00 11, ex 3406 00 19 and ex 3406 00 90 (TARIC
codes 3406 00 11 90, 3406 00 19 90 and 3406 00 90 90),
originating in the People’s Republic of China.

15.11.2008

EN

Official Journal of the European Union

L 306/45

For the purposes of this Regulation ‘memory lights and other
outdoor burners’ means candles, tapers and the like which have
one or more of the following characteristics:

The release for free circulation in the Community of the
3.
product referred to in paragraph 1 shall be subject
to the
provision of a security, equivalent to the amount of the provi­
sional duty.

(a)

their fuel contains more than 500 ppm of toluene;

(b) their fuel contains more than 100 ppm benzene;

(c)

they have a wick with a diameter of at least 5 millimetres;

(d) they are individually contained in a plastic container with

vertical walls of at least 5 cm in height.

2.
The rate of the provisional anti-dumping duty shall be a
fixed amount of euro per tonne of the fuel (usually but not
necessarily in the form of tallow, stearin, paraffin wax or other
waxes,
the products manu­
factured by the companies as shown below:

including the wick) content of

Company

Aroma Consumer Products
(Hangzhou) Co., Ltd.

Dalian Bright Wax Co., Ltd.

Dalian Talent Gift Co., Ltd.

Gala-Candles (Dalian) Co., Ltd.

Ningbo Kwung's Home Interior &
Gift Co., Ltd.

Ningbo Kwung's Wisdom Art &
Design Co., Ltd.

Qingdao Kingking Applied
Chemistry Co., Ltd.

Companies listed in Annex

All other companies

Amount of duty
EURO per tonne
of fuel

TARIC additional
code

593,17

A910

81,87

375,90

202,60

0

0

0

396,93

671,41

A911

A912

A913

A914

A915

A916

A917

A999

4.
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
to Article 145 of Commission Regulation
value pursuant
(EEC) No 2454/93 (1),
the amount of anti-dumping duty,
calculated on the amounts set above, shall be reduced by a
percentage which corresponds
the
price actually paid or payable.

to the apportioning of

Unless otherwise

5.
concerning customs duties shall apply.

specified,

the provisions

in force

Article 2

1. Without prejudice to Article 20 of Council Regulation
interested parties may request disclosure of
(EC) No 384/96,
the essential facts and considerations on the basis of which
this Regulation was adopted, make their views known in
writing and apply to be heard orally by the Commission
within one month of the date of entry into force of this Regu­
lation.

2.
Pursuant to Article 21(4) of Council Regulation (EC) No
384/96, the parties concerned may comment on the application
of this Regulation within one month of the date of its entry
into force.

Article 3

Article 1 of this Regulation shall apply for a period of six
months.

This Regulation shall enter into force on the day following that
of 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, 14 November 2008.

For the Commission

Catherine ASHTON
Member of the Commission

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

L 306/46

EN

Official Journal of the European Union

15.11.2008

ANNEX

Chinese cooperating exporting producers not sampled

TARIC Additional Code A917

Company Name

City

Beijing Candleman Candle Co., Ltd.

Cixi Shares Arts & Crafts Co., Ltd.

Dalian All Bright Arts & Crafts Co., Ltd.

Dalian Aroma Article Co., Ltd.

Dalian Glory Arts & crafts Co., Ltd.

Dandong Kaida Arts & crafts Co., Ltd.

Dehua Fudong Porcelain Co., Ltd.

Dongguan Xunrong Wax Industry Co., Ltd.

Xin Lian Candle Arts & Crafts Factory

Fushun Hongxu Wax Co., Ltd.

Fushun Pingtian Wax Products Co., Ltd.

Future International (Gift) Co., Ltd.

Greenbay Craft (Shanghai) Co., Ltd.

Horsten Xi'an Innovation Co., Ltd.

M.X. Candles and Gifts (Taicang) Co., Ltd.

Ningbo Hengyu Artware Co., Ltd.

Ningbo Junee Gifts Designers & Manufacturers Co., Ltd

Qingdao Allite Radiance Candle Co., Ltd.

Shanghai Changran Industrial & Trade Co., Ltd.

Shanghai Daisy Gifts Manufacture Co., Ltd.

Shanghai EGFA International Trading Co., Ltd.

Shanghai Huge Scents Factory

Shanghai Kongde Arts & Crafts Co., Ltd.

Shenyang Shengwang Candle Co., Ltd.

Shenyang Shenjie Candle Co., Ltd.

Taizhou Dazhan Arts & Crafts Co., Ltd.

Zheijang Hong Mao Household Co., Ltd.

Zheijang Neeo Home Decoration Co., Ltd.

Zheijang Ruyi Industry Co., Ltd.

Zheijang Zhaoyuan Industry Co., Ltd.

Zhejiang Aishen Candle Arts & Crafts Co., Ltd.

Beijing

Cixi

Dalian

Dalian

Dalian

Dandong

Dehua

Dongguan

Zhongshan

Fushun

Fushun

Taizhou

Shanghai

Xian

Taicang

Ningbo

Ningbo

Qingdao

Shanghai

Shanghai

Shanghai

Shanghai

Shanghai

Shenyang

Shenyang

Taizhou

Taizhou

Taizhou

Taizhou

Taizhou

Jiaxing

Zhongshan Zhongnam Candle Manufacturer Co., Ltd.

Zhongshan