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              A campaign to save money and help the environment by using energy efficient light bulbs

Wednesday, August 29, 2007


EU import tariff on Chinese CFLs extended
Thanks to Andy Ball for letting me know that the 66% tariff currently being charged on energy saving light bulbs imported into the EU from China has been extended for another 12 months.

Interestingly, it appears that Osram has not built any factories in China, unlike companies such as Philips. It also relies most heavily on the stick designs of CFL which the Chinese tend to make. Taken together these factors seem to have made Osram the most vulnerable to Chinese competition.

EU will retain light bulb tariff

Two thirds of energy-saving bulbs are imported from China
The European Commission has decided to retain import tariffs on Chinese-made energy-efficient light bulbs for up to another 12 months.
The decision was made even though only one of Europe's four energy-efficient light bulb producers, Germany's Osram, had called for more time to adjust.

The tariffs, introduced to stop cheap Chinese imports entering Europe, can add up to 66% to the price of bulbs.

The tariff extension will require the majority backing by EU member states.

They now have a month to decide.

'Severe contradiction'

A Commission spokesman said the extension of anti-dumping duties was needed to give European bulb producers time to adjust.

"In the overall Community interest, there are grounds to leave the possibility to continue in these anti-dumping measures for up to another year, mainly to allow in a changing reality a soft transition," said Commission spokesman Johannes Laitenberger.

Osram's rivals, including the Netherland's Philips, which already makes bulbs in China, had wanted the duty cancelled.

Environmental group Worldwide Fund for Nature said the Commission was displaying a "severe contradiction" in extending the import tariffs at the same time as lecturing consumers on the need to save energy.

Replacing old light bulbs with energy-efficient ones has long been hailed as a particularly effective way of reducing energy consumption.

Environmentalists say this would be easier to achieve if the tariffs were removed, since consumer would be more likely to buy energy-efficient bulbs if their price was lowered.

EU Trade Commissioner Peter Mandelson said: "This case has once again shown the complexities of managing antidumping rules in a global economy and against the broad range of EU interests."

Less than 20% of energy-saving bulbs on sale in Europe are made within the European Union, with more than two thirds imported from China.

While we are on the issue of taxation, if would like to support the reduction of VAT on energy-saving products inside the EU (one of this campaign's founding goals) you might like to sign this online petition which has been set up on the Downing Street website.

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Sunday, April 08, 2007


Import duty on Chinese CFLs up for renewal by EU
James has sent in the following article from the FT which explains how the light bulb manufacturer Siemens / Osram is lobbying against the renewal of the 66% import duty currently imposed on compact fluorescent lamps made in China when they are imported into the EU.

BTB suspects that this import duty will be renewed, or only cut a little, because the Western light ban manufacturers are co-operating with the EU's plans to phase out / ban incandescent light bulbs. It may also be significant that most Chinese CFLs are much less sophisticated than those made in the West (because they do not benefit from the patents) and could discredit all energy-saving light bulbs by offering disappointing performace.

While Europe's leaders were last week urging householders to fit energy-efficient light bulbs, several governments were busy attempting to block moves to cut their price.

A European summit agreed to toughen regulations against old-fashioned incandescent bulbs by 2009 as part of a bid to cut greenhouse gas emissions. But earlier in the week officials from trade ministries rebuffed attempts by the European Commission to end five-year-old surcharges on imports of energy-efficient bulbs from China.

The 66 per cent duty was imposed in 2002 after European manufacturers complained of dumping by the Chinese. It expires in October but Siemens of Germany, which owns the Osram brand, is pushing for an extension. The other big makers, Philips of the Netherlands, which pays a 33 per cent tariff, and GE of the US, disagree. Ending the duty would cut prices to the level of conventional bulbs.

The Commission believes that Osram does not have the requisite 25 per cent of the market to ask for measures but some states, including Italy, this week askedit to do its maths again.

A spokesman said: "The Commission has not yet reached a definitive assessment in this review at this stage. It will do so in the next couple of weeks."

A UK government spokeswoman said: "Replacing just one bulb with an energy-efficient alternative can reduce lighting costs by up to £9 per year, or £100 over the lifetime of the bulb." It also saves tonnes of carbon dioxide emissions. Cuba, Venezuela and Australia are to ban incandescent bulbs.

EU diplomats said the late addition of the item to the summit agenda was the personal initiative of Angela Merkel, German chancellor, whose country holds the Union's rotating presidency.

Asked whether she used such bulbs, she said: "Most of the bulbs in my flat are energy-saving bulbs but they are not yet quite bright enough. Sometimes if you drop something on the carpet, you can't always find it." She should expect a knock at the door soon from Siemens.

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