ANTI-DUMPING Flashcards
RA 8752
ANTI-DUMPING ACT OF 1999
LEGISLATION
RA 8752 otherwise known as the “Anti Dumping Act of 1999” was signed on
August 12, 1999
LEGISLATION
RA 8752 otherwise known as the “Anti Dumping Act of 1999” was took effect on
September 4, 1999.
The Implementing Rules and Regulations (IRR) or Joint Administrative Order no. 1 s, 2000 was signed on
July 03 2000
The Implementing Rules and Regulations (IRR) or Joint Administrative Order no. 1 s, 2000 was took effect on
July 10 2000
a form of a price discrimination between two (2) national markets.
Dumping
Occurs when an exporter sells his products at a price that is lower in the foreign importing market than the price charged in the exporter’s domestic market, or at prices below cost of production.
DUMPING
The sale or importation injures or threatens to injure a domestic industry in the importing country producing like product or comparable product or retards the establishment of a potential industry in said importing country.
DUMPING
Refers to any product, commodity or article of commerce introduced into the Philippines at an export priced less than its normal value in the ordinary course of trade, for the like product, commodity or article destined for consumption in the exporting country
Dumped Import/Product
It is causing or is threatening to cause material injury to a domestic industry, or materially retarding the establishment of a domestic industry producing the like product.
Dumped Import/Product
Refers to a trade remedy measure adopted by government to protect the domestic industry against the unfair trade practice of dumping.
Anti-dumping measure
refers to a special duty imposed on the importation of a dumped product, and is the difference between the export price and the normal value of such product.
anti dumping duty
Elements Of Dumping which a product produced by the domestic industry which is identical or alike in all respects to the article under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.
Like Product
Elements Of Dumping which means material injury to a domestic industry (current injury), threat of material injury (future injury) or material retardation of the establishment of a domestic industry.
Injury
Elements Of Dumping which the amount by which the normal value (the price prevailing in the exporting country) exceeds the export price (selling price to an importer in the Philippines)
Price Difference
Injury test must be based on positive evidence and shall involve an objective examination of both
(a) the volume of the dumped imports and the effect of dumped imports on prices in the domestic market for like product, and
(b) the consequent impact of these imports on the domestic producers of such products
refers to a finding that the material injury suffered by the domestic industry is the direct result of the importation of the dumped product. It must be clear that the injury suffered is directly attributable to the alleged dumping
Causal Link
Reffer to a foreign producer’s domestic selling price
normal value
It is the comparable price in the ordinary course of trade for the like product when destined for consumption in the country of export or origin.
normal value
Comparable price charged for the like product when exported to an appropriate third country;
Alternative normal value
Constructed value in the exporting country, calculated on the basis of the production costs of imported product, plus general, selling and administrative costs, and profit.
Alternative normal value
means the domestic price of the product in the exporting country at the same level of trade which is sold or offered for sale at wholesale on the date of exportation to the Philippines.
Comparable price
Price at which such product has been purchased or agreed to be purchased, at arm’s length transaction, by the person by whom or whose account the product is imported, excluding any post-exportation charges such as ocean freight and overseas insurance.
export price
Normally it refers to:
1. the ex-factory price at the point of sale for export; or
2. the price assessed at the free-on-board (F.O.B.) level (at the point of shipment) of the allegedly dumped product.
export price
When is an alternative export value is used?
-No export price as defined; or
-Export price is unreliable because of the relationship or a compensatory arrangement between the foreign exporter and the importer or a third party.
Reasonable price as may be determined by the Secretary of Trade and Industry/ Agriculture or the Commission.
Alternative export price
Constructed or deductive price based on the price at which the imported product are first resold to an independent buyer less all costs incurred between importation and resale I,e. customs duty, sales tax, selling and administrative, and profit; or
Alternative export price
Conducts formal investigation and makes the final determination for purposes of the imposition of the definitive anti-dumping duty.
Tariff Commission
Refers to a transaction where the price is not affected by any relationship between the buyer and the seller, of if there is no compensation, reimbursement, benefit, or other consideration given in respect of the price.
arm’s length transaction
Government agencies that administers the anti-dumping legislation
This Government Agencies:
-Receives the properly documented application (DTI for industrial goods and DA for agricultural goods)
Department of Trade and Industry – Bureau of Import Services (DTI-BIS) or Department of Agriculture (DA)
Conducts anti dumping reviews.
Tariff Commission
-Determines whether or not a prima facie case exists to warrant initiation of investigation
-Conducts preliminary investigation to determine whether or not provisional measures (dumping bond) may be imposed.
Department of Trade and Industry – Bureau of Import Services (DTI-BIS) or Department of Agriculture (DA)
Collects the anti dumping duties.
Bureau of Customs
-The Secretary of either Department issues the Department Order implementing an anti dumping measure pursuant to the results of the preliminary investigation and formal investigation of the Commission.
SECRETARY OF Department of Trade and Industry – Bureau of Import Services (DTI-BIS) or Department of Agriculture (DA)
A dumping protest may cover any specific kind or class of a _______________ which is being imported, sold or is likely to be sold, into the Philippines at a price less than its normal value, the importation or sale of which might injure, or retard the establishment of, or is likely to injure an industry producing like products in the Philippines.
foreign product
Importations that may be exempted from anti-dumping protest
-Products imported by, or consigned to, government agencies not organized for profit and particularly designated by law or proper authorities to import, directly or through awardees; such articles as would stabilize and/or supplement shortages; and
-Conditionally duty-free importations enumerated under Section 800 of the Customs Modernization and Tariff Act.
Who may file anti dumping protest?
A protest may be filed by, or on behalf of, the ____________ , in writing and embodied in a notarized form.
Under the law, the applicant (protestant) is required to _______________ to answer for any and all damages that the importer/protestee may sustain by reason of the filing of a frivolous petition, to be released only upon an affirmative preliminary determination.
domestic industry, post a surety bond
Refers to the domestic producers of like products as a whole or to those whose collective output of the products constitutes a major proportion of the total domestic production of those products in the industry concerned.
domestic industry
When producers are related to the exporters or importers or are themselves importers of the alleged dumped articles, the term ________________ may be interpreted as referring to the rest of the producers.
“domestic industry”
What is the threshold of support by producers for the protest (application) to be accepted?
a. support by domestic producers whose collective output constitutes more than fifty percent (50%) of the total production of the like product produced by the domestic industry; and
b. support by producers accounting for at least 25% of the total domestic production of the product alleged to be dumped.
Who else, aside from the domestic industry, may initiate an anti-dumping investigation?
In special circumstances, __________________, ___________ initiate an anti-dumping investigation without having received a written application by or on behalf of a domestic industry.
DTI or DA may, on its own motion,
Who else, aside from the domestic industry, may initiate an anti-dumping investigation?
The concerned authorities should have
______________,_______________-and a ______________ to justify the initiation of the investigation.
sufficient evidence of dumping, injury and a causal link
What information are required when applying for the imposition of anti-dumping duty?
-Volume of the domestic production of the producers making the application
-Description of the alleged dumped product
-Names of the exporting countries, each known exporter or foreign producer, and a list of importers of the product and
-Information on dumping such as
*Prices at which the product is sold in the domestic market of the exporting country and export prices
*Injury and causality
*Volume of dumped imports
*Adverse effects of such imports on domestic prices and on the domestic industries.
Circumstances when a petition be rejected and investigation terminated
The protest/application shall be immediately rejected and the investigation terminated if:
*Provisionally estimated margin of dumping is less than 2% of export price.
DM =( NV - EP)/EP
*the volume of imports from a particular country is less than 3% of all imports of like products into the importing country.
However, this rule does not apply when countries with individual shares of less than 3% collectively account for more than 7% of imports of the product under investigation; or
*the injury is negligible.
Stages in an anti-dumping investigation
Prima Facie Determination
Preliminary Determination
Final Determination
Issuance of Department Order
The following information are to be provided when applying for the levy of anti-dumping duty:
-Volume of the domestic production of the producers making the application;
-Description of the alleged dumped product;
-Names of the exporting countries, each known exporter or foreign producer, and a list of the importers of the products; and
-Information on dumping:
> prices at which the product is sold in the domestic market of the exporting country, and export prices;
> injury and causality;
> volume of dumped imports; and
> adverse effects of such imports on domestic prices and on the domestic industries.
WHAT Stages in an anti-dumping investigation is this ?
The DA or DTI-BIS, upon acceptance of a properly-documented protest/application, has ____________ days to decide whether the facts would constitute a dumping case.
In its determination, the DTI-BIS or DA undertakes an in-depth evaluation of the data submitted or provided, together with any other information obtained independently.
PRIMA FACIE DETERMINATION
5 working
WHAT Stages in an anti-dumping investigation is this ?
Once a prima facie case has been established, DTI-BIS or DA initiates the preliminary determination. Before proceeding to initiate an investigation, the DTI or DA Secretary notifies the government of the country of export or origin about the impending dumping investigation.
Within \_\_\_\_\_ days from the initiation of the investigation, the DTI-BIS or DA notifies all known interested parties about the initiation of the investigation and sends a proforma respondent’s questionnaire to all the interested parties.
Preliminary Determination
two (2)
WHAT Stages in an anti-dumping investigation is this ?
Not later than _____________ days from receipt of the answer of the respondents and other interested parties, the Secretary shall make a preliminary determination of the need for the imposition of a provisional anti-dumping duty on the basis of the application, the answer of the respondents, and the respective supporting documents or information.
The requirement of the dumping bond (equivalent to the amount of provisionally calculated dumping margin) shall be made \_\_\_\_\_\_\_\_\_\_\_\_\_\_ days from the date of initiation of the investigation and only for a period of four (4) months.
Preliminary Determination
thirty (30) working
not sooner than sixty (60)
WHAT Stages in an anti-dumping investigation is this ?
In the case of an ______________ findings, the DA or DTI Secretary issues Department Order for the imposition of provisional anti-dumping duty.
In case of \_\_\_\_\_\_\_\_\_\_\_ finding, the DA or DTI Secretary terminates the investigation.
PRELIMINARY DETERMINATION
affirmative
negative
WHAT Stages in an anti-dumping investigation is this ?
The Tariff Commission conducts the formal investigation during which it notifies all interested parties; receives representations and/or other submissions; holds preliminary conference and public consultations; and conducts on site investigation/data verification (for both foreign and domestic parties)
The Commission has ___ days from receipt of the advice from either DA or DTI Secretary to complete its investigation and submit its report of findings to the Secretary.
FINAL DETERMINATION
120
What is meant by disclosure of essential facts?
Before making the final determination, the Commission is required to disclose to the interested parties (e.g. exporters or producers under investigation, their governments, and importers) the essential facts on which the decision to apply the duty is made.
The parties are given five (5) days from the date of receipt of the essential facts to defend their interests in writing.
What can the investigating authorities do if the exporting enterprises, who have been accorded the right to defend their interests during the investigation, refuse to cooperate, impede an investigation, or provide incorrect/incomplete information?
The authorities can decide on the basis of the best information available
WHAT Stages in an anti-dumping investigation is this ?
Within \_\_\_\_\_\_ days from receipt of an affirmative final determination by the Commission, the DA or DTI Secretary shall issue a Department Order for the imposition of an anti-dumping measure, unless the Secretary has earlier accepted an undertaking from the foreign exporter to increase prices or cease exportation at dumped prices.
ISSUANCE OF DEPARTMENT ORDER
10
WHAT Stages in an anti-dumping investigation is this ?
In case of ___________, either Secretary shall issue, through the Secretary of Finance, after the lapse of the period for the petitioner to appeal to the Court of Tax Appeals, an Order for the Commissioner of Customs to immediately release the anti-dumping bond to the importer.
ISSUANCE OF DEPARTMENT ORDER
negative determination
What foreign exchange rate should be used in converting different currencies?
The exchange rate prevailing on the date of sale should be used for conversion purposes.
However, if the transaction is based on an exchange rate stated in a forward contract, the rate should be used.
modalities in determining the price effects of dumped imports
refers to the extent to which the domestic producer reduces his selling price in order to compete with the allegedly dumped product.
Price depression
modalities in determining the price effects of dumped imports
refers to the extent by which the allegedly dumped product prevents the domestic producer from increasing the selling price of his own like product to a level that will allow full recovery of his cost of production.
Price suppression
modalities in determining the price effects of dumped imports
refers to the extent to which the allegedly dumped product is consistently sold at price below the domestic selling price of the like product.
Price undercutting
The remedies/ measures imposed against dumping
takes the form of provisional duty or preferably, a security by cash deposit or bond equal to the estimated difference between the normal value and the export price of the protested article, the former being higher than the latter.
It is applied only after the DA or DTI-BIS has made a preliminary affirmative determination no sooner than 60 days from initiation of the case.
Provisional measure
The remedies/ measures imposed against dumping
Final anti dumping duty imposed, in addition to the regular duty and other charges, on protested product imported from a specific country following an affirmative final determination
Definitive anti-dumping duty
Duration of imposition of anti-dumping measure
four months, extendable to six months upon request by the exporters representing a significant percentage of the trade involved
Provisional measure
Voluntary commitment by the exporter to increase his price or to cease exporting to the Philippines at a dumped price, thereby eliminating the material injury to the domestic industry
Offer of price undertaking shall be made only after a preliminary affirmative determination of dumping and injury to the domestic industry has been reached.
price undertaking
An undertaking to increase prices or cease exportation at dumped prices may be rejected if its acceptance is impractical, e.g. the number of actual or potential foreign exporters is too large, or for other reasons, including reasons of general policy.
Effective for a period of ___________- unless the foreign exporter proves to the satisfaction of the authorities that the undertaking is no longer necessary.
price undertaking
five years
Duration of imposition of anti-dumping measure
shall not exceed five years from the date of imposition
Definitive anti dumping duty
is the imposition of anti dumping duty in amounts lower than the calculated margin of dumping, if such lesser duty is adequate to remove the injury to the domestic industry.
Lesser duty rule
anti-dumping reviews available to the affected parties of anti-dumping
ADMINISTRATIVE REVIEWS
may be initiated by any interested party or upon motion of the Commission before the sunset date (i.e. the 5th year) to determine whether the expiry of the anti dumping duty would likely to lead to a continuation or recurrence of dumping and injury.
Expiry or Sunset review
anti-dumping reviews available to the affected parties of anti-dumping
ADMINISTRATIVE REVIEWS
conducted by the Commission motu propio, or upon the direction of the Secretary, or upon petition of any interested party, to determine whether:
=The need for the continued imposition of the anti-dumping duty is no longer necessary to offset dumping taking into consideration the need to protect the existing domestic industry, or
-The existing duty is not sufficient to counteract the dumping which is causing injury.
-At least one year should have elapsed since the imposition of the anti-dumping duty before an interim review can be initiated.
Interim review
anti-dumping reviews available to the affected parties of anti-dumping
ADMINISTRATIVE REVIEWS
Carried out on an accelerated basis for the purpose of determining individual margins of dumping for new exporters (new shippers) in the exporting country in question which have not exported the product during the period of investigation on which the measures were based.
The new foreign exporters requesting for such review must not be related to any foreign exporter who is subject to the anti dumping duty.
New Shipper’s review
an exporter who did not export the allegedly dumped product during the investigation period
new foreign exporter
anti-dumping reviews available to the affected parties of anti-dumping?
Aggrieved and/or interested parties may appeal - within thirty (30) days from receipt of notice of the final ruling, a petition for review of such ruling may be filed with the Court of Tax Appeals in connection with the imposition of an anti-dumping duty.
the filing of such petition for review shall not in any way stop or suspend the imposition and collection of the anti-dumping duty.
JUDICIAL REVIEW
is the country where the allegedly dumped product either was wholly obtained or where the last substantial transformation took place. The country of origin and the country of export may be the same, but not in all instances. In case of a transshipment where a product is shipped from a third country that is not the country where the product was manufactured or processed, the country of origin would be different from the country of export.
country of origin”
is the country from where the allegedly dumped product was shipped to the Philippines, regardless of the location of the seller. The country of export and the country of origin may be the same, but not in all instances.
“country of export”
refers to a foreign exporter or producer who has not been initially selected for the purpose of computing the individual margins of dumping.
Non-selected foreign exporter or producer”
When does transshipment occur?
There is transshipment when the allegedly dumped product is not imported directly from the country of origin but is physically shipped through a third country without, however, entering into the commerce thereof.
refers to the country of export or origin where the government (1) has a monopoly, or substantial monopoly, of trade; and (2) determines, or substantially influences, the domestic prices of the products in that country.
“non-market economy”
