ANTI DUMPING Flashcards
trade remedy measure adopted by government to protect a
domestic industry against the unfair trade practice of dumping
Anti-dumping duty
occurs when foreign producers sell their products to an importer in the domestic market at prices lower than in their own national markets, or at prices below cost of
production, the sale or importation of which injures or threatens to injure a domestic industry
producing like or comparable products or retards the establishment of a potential industry.
Dumping
is a form of price discrimination between two national markets
Dumping
refers to 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
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.
Country of origin
Occur 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.
Transshipment
refers to the country of export or origin where the government
(i) has a monopoly, or substantial monopoly, of trade; and (ii) determines, or substantially
influences, the domestic prices of the products in that country.
Non-market economy
refers to a transaction where the price is not affected by any
relationship between the buyer and the seller, or if there is no compensation,
reimbursement, benefit, or other consideration given in respect of the price.
Arm’s length transaction
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
an exporter who did not export the allegedly dumped product
during the investigation period.
New foreign exporter
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
A __________ may cover any specific kind or class of a foreign product 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.
dumping protest
importations exempt 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 105 of the Tariff
and Customs Code of the Philippines (TCCP), as amended.
otherwise known as the “Anti-Dumping Act of 1999” was
signed on August 12, 1999 and took effect on September 4, 1999
Republic Act (RA) No. 8752
The
provisions of RA 8752 were adopted in ________ of the Customs Modernization and Tariff
Act (CMTA).
Section 711
rationale for the passage of RA 8752
To transform the domestic anti-dumping law into a more workable and simple
piece of legislation providing safety nets against the inflow of cheap dumped
imports;
To strengthen the rules governing the investigation of anti-dumping cases; and
To align the domestic law with the World Trade Organization (WTO) Agreement
on Anti-Dumping Practice (Article VI of the General Agreement on Tariffs and
Trade, or GATT, 1994).
issuances were promulgated to implement RA 8752
Joint Administrative Order No. 01, series of 2000
Tariff Commission (TC) Order No. 00-01
Which government agencies administer the anti-dumping legislation
Department of Trade and Industry-Bureau of Import Services (DTI-BIS) or
Department of Agriculture (DA)
Tariff Commission
Bureau of Customs
Who may file an anti-dumping protest?
on or behalf of, the domestic industry
who is required to post a surety bond?
applicant (protestant)
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
threshold of support by producers for a protest to be accepted
Support by domestic producers whose collective output constitutes more than
50% of the total production of the like product
Support by producers accounting for at least 25% of the total domestic production
who on may, on its own motion, initiate an anti-dumping investigation without having received a written application by or on behalf of a domestic industry.
DTI/DA
information is required 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 such as
(i) prices at which the product is sold in the
domestic market of the exporting country, and export prices;
(ii) injury and causality;
(iii) volume of dumped imports; and
(iv) adverse effects of such imports
on domestic prices and on the domestic industries.
The DTI-BIS or DA, upon acceptance of the properly documented protest/application, has ________ to decide whether the facts
would constitute a dumping case.
5 working days
Once a prima facie case has been established, DTI-BIS or DA initiates the investigation which includes notification to the government of the country of export or origin and all known interested parties, and distribution of questionnaire to all concerned parties. DTI or DA has ___________ from receipt of the answer to the questionnaire to make its preliminary determination of the need for the imposition of a provisional anti-dumping duty.
30 working days
In the conduct of its formal investigation, the Commission notifies all interested parties; receives representations and/or other submissions; holds preliminary conference and public consultations; and conducts on-site
investigation/data verification both foreign and domestic. The Commission has ____________from receipt of the advice from either Secretary of DTI or DA to complete its investigation and submit its report of findings to the Secretary.
120 days
Within ___________ from receipt of the
affirmative final determination by the Commission, the Secretary of DTI or DA
issue a Department Order for the imposition of an anti-dumping duty, unless the Secretary has earlier accepted an undertaking from the foreign exporter to increase prices or cease exportation at dumped prices
ten (10) days
circumstances may a petition be rejected and the investigation terminated
Margin of dumping is de minimis, less than 2%
Volume of imports from a particular country is negligible, i.e., less than 3%
Injury is negligible
Volume of imports from a particular country is negligible this rule does not apply when countries with individual shares of less than 3% collectively account for more than ______________of the product under investigation
7% of imports
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 ____________ from the date of receipt of the essential facts to defend their interests
in writing.
five (5) days
What are the 4 elements of dumping?
like product
price difference
injury
causal link
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
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
means “material” injury to a domestic industry, threat of material injury or material retardation of the establishment of a domestic industry
injury
Injury test must be based on positive evidence and shall involve an objective examination of both :
(i) the volume of the dumped imports;
(ii) effects of dumped imports on prices in
the domestic market for like product; and
iii) 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
is the foreign producer’s domestic selling price of the article. 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
instances that the foreign producer’s domestic selling price cannot be used as basis for normal value
No domestic sales of like product;
Sales in the domestic market of the exporting country are not made in the
ordinary course of trade (e.g. , sales are made below the cost of production); or
Volume of sales in the domestic markets is low, i.e., less than 5% of investigated
imports
bases for alternative normal value
Comparable price
Constructed value in the exporting country,
is the price at which such product has been purchased or agreed to be purchased, at arm’s length transaction, by the person by whom or for whose account the product is imported, excluding any post-exportation charges such as ocean freight and overseas insurance
Export price
Normally, export price is
(i) the ex-factory price at the point of sale for
export; or
(ii) the price assessed at the free-on-board level (at the point of shipment) of the
allegedly dumped product.
alternative export value used
No export price as defined; or
Export price is unreliable because of a relationship or a compensatory
arrangement between the foreign exporter and the importer or a third party.
What are the bases for 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
Reasonable price as may determined by the Secretary of Trade and
Industry/Agriculture or the Commission
What exchange rate should be used for conversion purposes
The exchange rate prevailing on the date of sale should be used for conversion
purposes
What factors are considered in determining material injury to the domestic industry?
Actual or potential decline in output, sales, market share, profits, productivity, return on investments, or utilization of capacity;
Effects on domestic prices; and
Actual or potential effects on cash flow, inventories, employment, wages, growth,
and ability to raise capital or investments.
three modalities in determining the price effects of dumped imports
Price depression
Price suppression
Price undercutting
- refers to the extent by which the domestic producer reduces its selling price in order to compete with the allegedly dumped product.
Price depression
refers to the extent by which the allegedly dumped product prevents the domestic producer from increasing the selling price of its own like product to a level that will allow full recovery of its cost of production
Price suppression
is the extent by which the allegedly dumped product is consistently sold at a price below the domestic selling price of the like product.
Price undercutting
factors are considered in determining the existence of a threat of material injury
Significant rate of increase in the importation of the dumped product
Sufficient freely disposable, or an imminent, substantial increase in, production capacity of the foreign exporter
Whether dumped products are entering at prices that will have a significantly depressing or suppressing effect on domestic prices
inventories of the product being investigated
What other causes of injury not related to dumping are considered in determining causation
Volumes and prices of imports not sold at dumped prices;
Contraction in demand or changes in the patterns of consumption;
Trade restrictive practices of, and competition between foreign and domestic
producers;
Developments in technology; and
Export performance and productivity of the domestic industry
remedies/measures imposed against dumping?
Provisional Measure
definitive duty
takes the form of a 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 DTI-BIS or DA has made a preliminary affirmative determination no sooner than 60 days from the initiation of the case
provisional measure
final anti-dumping duty imposed, in addition to the regular duty and other charges, on a protested product imported from a specific country following an affirmative final determination
definitive duty
duration of imposition of anti-dumping measures
Provisional measure - four (4) months, extendable to six (6) months upon request
by the exporter.
Definitive anti-dumping duty - five (5) years from the date of imposition.
is a 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
price undertaking
when shall be the offer of price undertaking be made?
only after a preliminary affirmative determination of dumping and injury to the domestic industry
Price undertaking is effective for a period of __________
five (5) years
is the imposition of anti-dumping duty in amounts lower than the calculated margin of dumping, if such a lesser duty is adequate to remove the injury to the domestic industry
Lesser duty rule
reviews available to the affected parties of anti-dumping measures
a. administrative reviews
sunset review
interim review
newcomer review
b. judicial review
- may be initiated by any interested party or upon own 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 lead to a continuation
or recurrence of dumping and injury.
Sunset review
conducted by the Commission motu proprio, or upon the direction of the Secretary, or upon petition of any interested party to
determine whether (i) 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 (ii) the
existing duty is not sufficient to counteract the dumping which is causing injury. At least one (1) year should have elapsed since the imposition of the anti-dumping duty before an interim review can be made.
interim review
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 comer review
Any aggrieved and/or interested party may file a petition for review with the______________________ from receipt of notice of the final ruling on the imposition of an anti-dumping duty. Filing of such petition
for review shall not in any way stop or suspend the imposition and collection of the anti-dumping duty.
Court of Tax Appeals within thirty (30) days
