Chinese Lighter Makers Evade EU Tax Via Vietnam

The European Commission has announced a probe into the evasion of the anti-dumping tax on Chinese disposable lighter manufacturers on their exports shipped to the EU from Vietnam.

The information has been confirmed by the Competition Management Agency under the Vietnamese Ministry of Industry and Trade.

Earlier Société BIC, a disposable pocket lighter manufacturer based in France, lodged a complaint to the EC, suing China for evading the 6.5 percent anti-dumping taxes on their gas lighters.

The trick is Chinese manufacturers assembled the products in Vietnam and shipped their consignments from there to the EU to bypass anti-dumping duties.

Following the petition, the EU on June 26 initiated an anti-circumvention probe into disposable gas-filled lighters made in China under EU consolidated HS Code ex96131000, China's English website e-to-china.com (ETCN) reported.

The probe targets the Chinese lighters re-exported via Vietnam, regardless of whether or not they are marked as made in Vietnam, the website said.

The EU started its antidumping probe on Chinese lighters in April 1990 and made an affirmative final ruling in November 1991; so far it has levied the relevant antidumping duty for 21 years, according to ETCN.

Although the investigation is mainly aimed at Chinese manufacturers, the Competition Management Agency said its results will affect all Vietnamese lighter exporters to the European market as well.