Annexes to COM(2007)550 - Anti-dumping duties on imports of integrated electronic compact fluorescent lamps (CFL-i) from China following an expiry review pursuant to Article 11(2) of Council Regulation (EC) No 384/96 and extending to imports of the same product consigned from Vietnam, Pakistan and the Philippines - Main contents
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| dossier | COM(2007)550 - Anti-dumping duties on imports of integrated electronic compact fluorescent lamps (CFL-i) from China following an expiry ... |
|---|---|
| document | COM(2007)550  |
| date | October 15, 2007 |
Company A
(a) Imported quantities
During the RIP Company A imported between 50 and 60 million CFL-i lamps from the country concerned. In terms of volumes sold on the Community market, Company A imported between 70 % and 80 % of its sales. In terms of value, the imported products generated less revenue. Whereas the imported volumes represented around three times the volumes manufactured in the Community, in terms for revenues for Company A the imports generated just a little more than 50 % of the total revenues from the Community sales.
(b) Relation to exporting producers in the country concerned
Company A has two related exporting producers in the country concerned. Company A sources most of its imports from these two related exporting producers. In the RIP, these two exporting producers exported 47 % of their production to the EC.
(c) Import sourcing strategy, defensive (temporary) or strategic (long-term)
Company A has taken a strategic, long-term decision to source from the country concerned in view of being able to offer the full product range to its customers.
(d) Production in the Community
Company A is the second largest manufacturer of CFL-i in the Community, employing approximately 600 persons for the production and sales of the product under consideration. According to Company A another two production lines will be installed in its factory, adding another 15 to 20 million units thereby adding about half of its current production capacity. The new production lines are destined for production of the product concerned.
As also for the other manufacturers in the Community, Company A’s production in the Community mainly consists of assembling components from several sources. In this case, slightly less than half of these components are sourced from within the Community. Rules of origin are governed by Customs Law, particularly Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (1), in particular Articles 22 to 27. The investigation showed that the product concerned has a different customs classification than the imported components. This re-classification results from a substantial transformation of the components. On these grounds, and based on the information gathered in this investigation it can therefore be concluded that the products concerned manufactured by Company A are of Community origin.
(e) Location of headquarters and main shareholders
Company A is a division of a large European company group with headquarters in the Community.
(f) Location of research and development departments
The main research and development centre of Company A is located in one Member State. In addition, the majority of the research and development plants especially those linked to the development of the production process are located close to the production plants, i.e. in another Member State and in the country concerned.
Company B
(a) Imported quantities
During the RIP, Company B imported between 11 and 18 million CFL-i lamps from the country concerned. In terms of volumes sold on the Community market, Company B imported between 20 % and 30 % of its sales during the RIP.
In terms of value, the imported products generated less revenue. The imported products generated between 15 % and 20 % of the total revenues.
(b) Relation to exporting producers in the country concerned
Company B has one related exporting producer in the country concerned. The production capacity of this related exporting producer was approximately 40 million units during the RIP, or slightly less than the capacity of Company B’s production capacity at its plants in the Community. However, during the RIP, Company B did not import any CFL-i from this related exporting producer, but from independent exporting producers.
One independent exporting producer in the country concerned, with a significant production capacity and significant sales to the Community, alleged that Company B has showed willingness to acquire it. The exporting producer alleged that Company B should not be included in the definition of the Community production as it had shown interest in acquisitions of independent exporting producers in the country concerned and, therefore, would be further shielded from injurious dumping once this or any other acquisition would take place. The allegation was not substantiated by any documentary evidence and has therefore to be rejected.
(c) Import sourcing strategy, defensive (temporary) or strategic (long-term)
Company B considers its imports to be a defensive move. It claims that its imports are of temporary nature and would be replaced by CFL-i manufactured in the Community. Indeed, after the end of the RIP, Company B has been in the process to install new capacity at one of its plants in the Community.
(d) Production in the Community
Company B is the largest producer in the Community. It employs approximately 700 persons for the production and sales of the product concerned. As is the case for the other producers in the Community, Company B’s production in the Community mainly consists of assembling components from several sources. In this case, almost all components are sourced from within the Community.
(e) Location of headquarters and main shareholders
Company B is a division of a large European company group with headquarters in the Community.
(f) Location of research and development departments
The main research and development centre of Company B is located in one Member State. In addition, some of the research and development plants especially those linked to the development of the production process are located close to the production plants, i.e. in two other Member States (including for components) and in the country concerned.
Company C
(a) Imported quantities
During the period considered Company C imported between 3 and 7 million CFL-i lamps from the country concerned. In terms of volumes sold on the Community market, Company C imported between 30 % and 40 % of its sales.
In terms of value, the imported products generated less revenue. The imported products generated only between 20 % and 30 % of the total revenues.
(b) Relation to exporting producers in the country concerned
Company C has one related exporting producer in the country concerned, from which it sources most of its imports. The capacity of this related exporting producer was approximately five times larger than Company C’s production capacity at its plant in the Community.
(c) Import sourcing strategy, defensive (temporary) or strategic (long-term)
Company C has stated that it is a strategic, long-term decision to source from the country concerned in view of being able to offer the full product range to its customers. Given the low purchase prices and the low shipping costs, the circumstances according to the company would not entail any economic advantage in producing this kind of products concerned in the EU in such volumes as to satisfy the demand.
(d) Production in the Community
Company C employs approximately 450 persons in the production and sales of the product concerned, mainly at its factories in one Member State. Company C’s production in the Community mainly consists of assembling components from several sources. Less than half of these components are sourced from within the Community. The investigation showed that the product concerned has a different customs classification than the imported components. This reclassification results from a substantial transformation of the components. On these grounds, and based on the information gathered in this investigation, it has been concluded that the products concerned manufactured by Company C are of Community origin.
(e) Location of headquarters and main shareholders
Company C is a division of a large Company group with headquarters in a third country. However, the headquarters of Company C, which is a separate legal entity, is located in the Community.
Despite being part of a global group with headquarters in a third country, Company C is fully competent to take all business decisions on production, imports and sales strategy concerning CFL-i for the Community market.
(f) Location of research and development departments
The main research and development centre of Company C. for the product concerned is located in one Community Member State. In addition, some research and development also takes place in the head quarters in the third state. Moreover, research and development, especially linked to the production process, is also located close to the production plants, i.e. in the Community and in the country concerned.
Company D
(a) Imported quantities
During the period considered Company D imported between 2 and 3 million CFL-i lamps from the country concerned. In terms of volumes sold on the Community market, Company D imported between 50 % and 60 % of its sales.
In terms of value, the imported products generated less revenue. The imported products generated less than between 40 % and 50 % of the total revenues.
(b) Relation to exporting producers in the country concerned
Company D has no related exporting producer in the country concerned. Imports from the country concerned are sourced from independent exporting producers.
(c) Import sourcing strategy, defensive (temporary) or strategic (long-term)
Company D has stated that it is a strategic, long-term decision to source from the country concerned in view of being able to offer the full product range to its customers. According to the company, it would not be economically advantageous to produce this kind of products concerned in the EU in such volumes as to satisfy the demand.
(d) Production in the Community
Company D employs between 35 and 85 persons for the production and sales of the product concerned, mainly at its factory in the Community. Its manufacturing activity mainly consists in assembling components, less than half of them being sourced in the EU. The investigation showed that the product concerned has a different customs classification than the imported components. This reclassification results from a substantial transformation of the components. On these grounds, and based on the information gathered in this investigation, it has been concluded that the products concerned manufactured by Company D are of Community origin.
(e) Location of headquarters and main shareholders
During the RIP, Company D was owned by a private equity-group. However, after the end of the RIP, Company D has been acquired by a manufacturer in a third country. Company D has its corporate headquarters the Community.
(f) Location of research and development departments
All Company D’s centres of research and development are based in the Community.
(1) OJ L 302, 19.10.1992, p. 1. Regulation as last amended by Council Regulation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).