Lighter companies get fairer treatment from EC
( 2002-10-11 09:32 ) (1 )

The European Commission (EC) has decided to grant five Chinese lighter makers market economy treatment in its anti-dumping case against the disposable gas-fuelled pocket lighters.

"As far as I know, all the Chinese lighter manufactures applying for market economy treatment in this case have won a nod from the EC," said Gao Xiangjun, director of the Legal Department with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME).

However this is only a tentative step in the case, the final judgment could come in June or July next year, Gao added.

The EC initiated anti-dumping proceedings on Chinese disposable gas-fuelled pocket lighters on June 27 this year.

Some 21 Chinese firms responded to dumping charges. Among the 21 firms, 15 applied for recognition of their safety precautions, five for market economy treatment and one for a separate verdict.

The EC made the latest decision on market economy treatment after its officials had on-site checks from September 3 to 17.

Xiang Dong, a lawyer from law firm Chai & Fu said the granting of the market economy treatment is the first step towards winning the case for the five companies.

Two of the five lighter makers who won market economy treatment, Ningbo Xinhai Electronics Manufacture Co Ltd and Ningbo Shunhong Lighter Manufacture Co Ltd, are clients of the law firm.

Xiang said market economy treatment makes it easier to win the anti-dumping case.

According to Xiang's statistics, only 11 domestic companies have been granted market economy treatment in anti-dumping cases prior to the lighter case.

Since China is not regarded as a market economy country by the EC, a third country analogue market economy has to be selected to establish normal values if the company is not granted market economy treatment.

"Since the labour costs in the third country are often higher than that in China, the normal value is much higher in the third country which easily leads to the dumping charge on Chinese products," Xiang said.

For example, Turkey was selected as an analogue country when the EC reviewed the anti-dumping case on Chinese TV sets and finally imposed a duty rate of 44.6 per cent.

This is unreasonable for Chinese products, she added.