Trade Remedy Measure - Anti Dumping Measure Flashcards
Is a trade remedy measure to protect domestic industries against unfair trade practices caused by dumping.
Anti-Dumping measure
An act of exporting a product at a price less than its normal value. Also, a form of price discrimination or differentiation between two national markets.
Dumping
CMTA provision adopting the RA 8752 - “Anti-Dumping Act of 1999”
Sec 711
When was RA 8752 signed and took effect?
Aug 12, 1999 and Sept 4, 1999, respectively
Elements of dumping:
a. Like product.
b. Price difference/dumping margin
c. Material injury
d. Causality
An element of dumping where the product is identical or alike in all respect or closely resembling.
Like product.
It refers to domestic producers of like products as a whole or to those such producers whose collective output of the products constitutes a major proportion of the total domestic production of those products in the industry concerned.
Domestic Industry
An element of dumping where the amount by which the normal value exceeds the export price.
Price difference/dumping margin
It refers to the price prevailing in the exporting country.
Also, foreign producer’s domestic selling price.
Normal value
It refers to the selling price to an importer.
Price paid or the selling price to an importer.
Ex-works price at the point of sale for export.
FOB price at the point of shipment.
Export price
Dumping margin formula.
DM = NV - EP or DM = NV - EP/EP (percentage)
It refers to the domestic prices in the exporting country.
Alternative normal value.
It refers to the constructive or deductive price, i.e., domestic selling price of imported articles less than cost incurred after exports, e.g., customs duty, sales tax, selling, administrative expenses and profits; or reasonable price.
Alternative export price
How to determine dumping margin?
Individual margin of dumping for each know exporter.
Refers to material injury to a domestic industry, a threat a material injury, or material retardation of the establishment of a domestic industry.
Material injury
Basis of material injury test.
a. volume and effect of dumped imports to domestic market
b. impact of dumped imports on domestic producers
An element of dumping that refers to overall assessment that the material injury suffered by the domestic industry is the direct result of the importation of the dumped import.
Causality
It refers to trade counter-measure 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 measure.
RA 8751
Countervailing act of 1999
Elements of countervailing
a. Like product
b. Subsidy
c. Material injury
d. Causality
It refers to any specific assistance, e.g., financial contribution, income or price support schemes directly or indirectly provided by the government of the country of export or origin in respect of the product imported into the country.
Subsidy
Refers to “yellow subsidies” where a subsidy is explicitly limited to an enterprise or group of enterprises, industry sector or group of industries, or designated geographic region within the jurisdiction of the granting authority.
Countervailable Subsidy
Refers to “red subsidies”, includes export subsidies. Those that are contingent on export performance and the use of domestic over imported goods.
Prohibited subsidy.
