COUNTERVAILING Flashcards
Republic Act No. 8751
“Countervailing Duty Act of
1999 “
LEGISLATION
R.A. 8751 was signed on
August 7, 1999, and took effect on August 31, 1999.
IRR
The Implementing Rules and Regulations
The Implementing Rules and Regulations (IRR) or Joint Administrative
Order no. 2s, 2000 was published on
September 18 2000 and took effect
on September 25, 2000
is a trade countermeasure adopted by the government to offset any bounty or
subsidy given to exporters which is not generally available to
other producers of the exporting country.
Subsidies and countervailing measures
Refers to any specific assistance (e.g. financial contribution, income or price support schemes) provided directly or
indirectly by the government of the country of export or origin in respect of the product imported into the Philippines, which confers a benefit to the foreign exporter
or producer of said product.
Subsidy
Are all subsidies countervailable?
Not all subsidies are countervailable/actionable.
Subsidy, in order to be countervailable, must be
“specific”.
Refers to the subsidy limited to an enterprise or industry, or to a
group of enterprises or industries.
specific subsidy
“__________” or “___________” are those
falling under the definition of “subsidy” which are neither non-actionable nor prohibited subsidies.
Actionable subsidies or yellow subsidies
“______________” or “____________” are those
which are permitted as they are of a general nature, i.e., applied across-the-board to all industries and not limited to a
specific industry or enterprise or group of enterprises or industries.
“Non-actionable subsidies” or “green subsidies”
“_________” or “_________,” on the other hand, include export subsidies, i.e., those that are contingent on export performance, and subsidies that are contingent on the
use of domestic over imported goods
“Prohibited subsidies” or “red subsidies,”
a product is identical or alike in all respects to the article under consideration or, in absence of such product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.
Comparability
Product
refers to any specific assistance directly or indirectly provided by the government of the country of export or origin in respect of a product imported into the Philippines.
Subsidy
means material ______ to a domestic industry (current ________),
threat of material ________(future ______) or material retardation of the
establishment of a domestic industry.
Injury
refers to a finding that the material injury suffered by the domestic industry is the direct result of the importation of the
subsidized product.
Causal Link