ANTI DUMPING MEASURE Flashcards

1
Q

a form of price discrimination between two (2) national markets

A

DUMPING

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2
Q

Dumping occurs when an exporter sells his products at a price that is lower in the ___ than the price charged in the____ or at prices below cost of ___

A

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,

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3
Q

Dumping is legal under the World Trade Organization (WTO) rules unless__

A

Dumping is legal under the World Trade Organization (WTO) rules unless its injurious effect on the importing country’s producers can be established.

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4
Q

any product, commodity or article of commerce introduced into the Philippines at an export price 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, which 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.

A

dumped import/product

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5
Q

refers to a trade remedy measure adopted by government to protect the domestic industry against the unfair trade practice of dumping.

A

anti-dumping measure

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6
Q

refers to a duty imposed on the importation of a dumper product. The difference between the export price and the normal value of such product is the dumping margin.

A

anti-dumping duty

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7
Q

known as the “Anti-Dumping Act of 1999

A

Republic Act (RA) No. 8752

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8
Q

“Anti-Dumping Act of 1999 was signed on __ and took effect on __

A

“Anti-Dumping Act of 1999 was signed on 12 August 1999 and took effect on 04 September 1999.

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9
Q

provide protection to a domestic industry which is being injured, or is likely to be injured, by the dumping of products imported into or sold in the Philippines

A

provisions of RA No. 8752

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10
Q

The provisions of RA No. 8752, were adopted in Section __ of the Customs Modernization and Tariff Act (CMTA).

A

Section 711 of the Customs Modernization and Tariff Act (CMTA).

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11
Q

What was the rationale for the passage of RA No. 8752?

A
  • To transform the domestic anti-dumping law into a more workable and simpler piece of legislation providing the safety nets against the inflow of cheap dumped Imports
  • To strengthen the rules governing the investigation of anti-dumping cases
  • To align the domestic law with the WTO Agreement an Anti-Dumping Practice (Article VI of the GATT 1994)
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12
Q

What other issuances were promulgated to implement RA 8752?

A
  • Joint Administrative Order No. 01, series of 2000 Implementing Rules and Regulations (IRR) of RA 8752
  • Tariff Commission Order No. 00-01
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13
Q

Joint Administrative Order No. 01, series of 2000 Implementing Rules and Regulations (IRR) of RA 8752 which took effect on __

A

10 July 2000

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14
Q

internal rules and regulations to govern conduct by the Commission of anti-dumping investigations

A

Tariff Commission Order No. 00-01

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15
Q

Tariff Commission Order No. 00-01 took effect on __

A

05 July 2000

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16
Q

Which government agencies administer the anti-dumping legislation?

A
  • Department of Agriculture (DA) or Department of Trade and Industry (DTI)
  • Tariff Commission
  • BOC
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17
Q

receives the properly documented application

A

Department of Agriculture (DA) or Department of Trade and Industry (DTI) - Bureau of Import Services (DTI-BIS

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18
Q

Department of Agriculture (DA) or Department of Trade and Industry (DTI) - Bureau of Import Services (DTI-BIS) receives the properly documented application (DTI for ___ goods and DA for __l products)

A

(DTI for industrial goods and DA for agricultural products)

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19
Q

determines whether or not a prima facie case exists to warrant initiation of investigation

A

Department of Agriculture (DA) or Department of Trade and Industry (DTI) - Bureau of Import Services (DTI-BIS)

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20
Q

conducts preliminary investigation to determine whether or not provisional measures (dumping bond) may be imposed

A

Department of Agriculture (DA) or Department of Trade and Industry (DTI) - Bureau of Import Services (DTI-BIS)

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21
Q

issues the Department Order implementing an anti-dumping measure pursuant to the results of its preliminary investigation and the formal investigation of the Commission,

A

Secretary of Department of Agriculture (DA) or Department of Trade and Industry (DTI) - Bureau of Import Services (DTI-BIS)

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22
Q

conducts the formal investigation and makes the final determination for purposes of the imposition (or non-imposition) of a definitive anti-dumping duty

A

Tariff Commission

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23
Q

conducts the review of anti-dumping (i.e., new shipper’s review, interim or changed circumstances review, and sunset or expiry review)

A

Tariff Commission

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24
Q

collects the anti-dumping duties

A

BOC

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25
Q

An anti-dumping investigation covers any product which is imported into the Philippines at an ___ less than its __ in the ordinary course of trade

A

An anti-dumping investigation covers any product which is imported into the Philippines at an export price less than its normal value in the ordinary course of trade

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26
Q

country where the allegedly dumped product was shipped to the Philippines, regardless of the location of the seller.

A

country of export

27
Q

TOF: The country of export and the country of origin is the same, in all instances.

A

FALSE; The country of export and the country of origin may be the same, but not in all instances.

28
Q

the country where the allegedly dumped product either was wholly obtained or where the last substantial transformation took place.

A

country of origin

29
Q

where a product is shipped from a third country that is not the country where the product was manufactured or processed

A

transshipment

30
Q

What are the types of products that may be dumped?

A
  • agricultural product [Chapters 1 to 24 of HS and Annex A ]
  • Non-agricultural or industrial goods [Chapters 25 to 97 of HS]
31
Q

Are there any importations exempted from anti-dumping protest?

A

Yes
1. products imported by government agencies not for profit and designated by law; products that supplement shortages
1. duty-free Section 800 [CMTA].

32
Q

Who may file for an anti-dumping protest?

A

Any person whether natural or juridical, representing a domestic industry

33
Q

Any person whether natural or juridical, representing a domestic industry, may file a written application using the __ (available with the DTI or DA) duly supported by relevant documents

A

proforma protestant’s questionnaire

34
Q

Under __ , the applicant (protestant) is required to post a surety bond to answer for any and all damages that the importer/protestee may sustain by reason of the filing of a __ petition.

A

RA No. 8752; frivolous petition.

35
Q

Failure to post the surety bond within__ days shall result in the dismissal of the application.

A

within ten (10) days

36
Q

When is an application not frivolous?

A
  1. if the reason for its dismissal is a de minimis margin
  2. or causal link cannot be established
37
Q

When is an application frivolous?

A
  1. intentional misrepresentation of the information or evidence
  2. evidence of bad faith of applicant
38
Q

refers to the domestic producers as a whole of the like product or to those of them whose collective output of the product constitutes a major proportion of the total domestic production of that product

A

domestic industry

39
Q

When are domestic producers not considered as domestic industry?

A

producers are related to the exporters or importers of dumped product
producers themselves importers of dumped products.

NOTE: In this case,”domestic industry” is interpreted to the rest of the producers.

40
Q

What is the threshold of support by producers for the protest to be accepted?

This question is basically asking for the minimum percentage of producers who need to agree with the protest.

A
  • Support by domestic producers whose collective output constitutes more than fifty percent (50%)
  • Support by producers accounting for at least twenty-five percent (25%) of the total domestic production of the alleged dumped.product

SIMPLIFIED: First, more than half (over 50%) of the total production of the product in question needs to be in favor of the protest. Second, at least a quarter (25%) of the producers of the dumped product must also support the protest.

41
Q

In special circumstances, ___ may, on its own motion, initiate an anti- dumping investigation without having received a written application by or on behalf of a domestic industry.

A

DA or DTI

42
Q

What are the stages of an anti-dumping investigation?

A
  1. Prime Facie Determination
  2. Preliminary Determination
  3. Final Determination
  4. Issuance of Department Order
43
Q

Under what circumstances may a petition be rejected, and the investigation terminated?

A
  1. margin of dumping is less than two percent (2%) of export price
  2. volume of dumped imports or injury is negligible.

SIMPLIFIED: First, there’s negligible dumping margin. Second, there’s negligible dumping volume.

44
Q

When is the volume of dumped imports considered negligible?

A

volume of dumped imports is less than three percent (3%)

45
Q

When is the volume of dumped imports not considered negligible?

A

countries which individually account for less than three percent (3%) of the imports of the like article in the Philippines collectively account for more than seven percent (7%) of the total imports of that article.

SIMPLIFIED: multiple countries are each selling a small amount (less than 3% each) of a dumped product in the Philippines, but together those imports add up to more than 7%

46
Q

What is meant by disclosure of essential facts?

Disclosure of essential facts refers to the act of revealing all the crucial information

A

Before final determination, TC is required to disclose to all interested parties on the decision to apply an anti-dumping duty is to be made.

47
Q

Before making the final determination, the Tariff Commission is required to disclose to all interested parties (e.g., the domestic industry, exporters or foreign producers under investigation, their governments, and importers) the essential facts on which the decision to apply an anti-dumping duty is to be made. The parties are given __ of the essential facts to defend their interests in writing.

A

The parties are given five (5) days from the date of receipt of the essential facts to defend their interests in writing.

48
Q

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?

A

The authorities can decide based on the best information available.

49
Q

What are the four (4) elements of dumping?

A

Like product
Price difference/Dumping margin
Material injury
Causal link

50
Q

product which is identical or alike in all respects to the product 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

A

Like product

51
Q

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)

A

Price difference/Dumping margin

52
Q

material injury to a domestic industry, threat of material injury or material retardation of the establishment of a domestic industry

A

Material injury

53
Q

refers to a finding that the material injury suffered by the domestic industry is the direct result of the importation of the dumped product

A

Causal link

54
Q

comparable price at the date of sale of the like product, commodity, or article in the ordinary course of trade when destined for consumption in the country of export or origin

A

Normal value

55
Q

the domestic price of the like product in the country of export or origin at the same level of trade, normally at the ex-factory level, and in respect of sales made at the same time as, or as near as possible to, the date of exportation to the Philippines.

A

comparable price

56
Q

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.

A

arm’s length transaction

57
Q

What are the instances that the foreign producer’s domestic selling price cannot be used as basis for normal value?

A
  1. Absence of sales of the allegedly dumped product
  2. Market situation makes domestic sales unsuitable for proper comparison (price does not reflect a fair price in normal market conditions)
  3. Volume of domestic sales is less than 5% of export sales
58
Q

Who will determine on what may be used as basis for an alternative normal value?

A

The DA or DTI-BIS or the Commission

59
Q

What may be used as basis for an alternative normal value?

A
  1. comparable price
  2. constructed value in the exporting country [based on the production costs of imported product, plus general, selling, and administrative cost, and profit]
60
Q

What is export price?

A

(1) the ex-factory price at the point of sale for export
(2) the freight on-board (F.O.B.) price at the point of shipment, of the allegedly dumped product.

61
Q

When is an alternative export value used?

A
  1. no export price is defined;
  2. export price is unreliable because of a relationship or a compensatory arrangement made between the foreign exporter and the importer or a third party
62
Q

What may be used as basis for an alternative export price?

A
  1. Constructed or deductive price [based on the price at which the imported products are first resold to an independent buyer less all costs incurred between importation and resale]
  2. Reasonable price [determined by the Secretary of Trade and Industry/Agriculture or the Commission]
63
Q

What foreign exchange rate should be used in converting different currencies?

A
  1. exchange rate prevailing on the date of sale
  2. exchange rate stated in a forward contract [if there’s any]

A forward contract is an agreement made today to exchange currencies at a specific rate on a future date.

64
Q

What factors are considered in determining material injury to the domestic industry?

A