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Dumping is defined in the Agreement on Implementation
of Article VI of the GATT 1994 (The Anti-Dumping Agreement)
as the introduction of a product into the commerce of
another country at less than its normal value. Under
the Anti-Dumping Agreement (The Agreement), WTO
Members can impose anti-dumping measures, if, after
investigation in accordance with the Agreement, a determination
is made:
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that dumping is occurring,
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| (b) |
that the domestic industry
producing the like product in the importing country
is suffering material injury, and
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that there is a causal link between
the two. In addition to substantive rules governing
the determination of dumping, injury, and causal
link, the Agreement sets forth detailed procedural
rules for the initiation and conduct of investigations,
the imposition of measures, and the duration and
review of measures. |
The
normal value is generally the price of the product at
issue, in the ordinary course of trade, when destined
for consumption in the exporting country market. In
certain circumstances, for example when there are no
sales in the domestic market, it may not be possible
to determine normal value on this basis. The Agreement
provides alternative methods for the determination of
normal value in such cases.
The export price will normally be based
on the transaction price at which the foreign producer
sells the product to an importer in the importing country.
However, as is the case with normal value, the Agreement
recognizes that this transaction price may not be appropriate
for purposes of comparison.
The Agreement requires that a fair
comparison of the export price and the normal value
be made. The basic requirements for a fair comparison
are that the prices being compared are those of sales
made at the same level of trade, normally the ex-factory
level, and of sales made at as nearly as possible the
same time.
As part of the Agreement's requirements
regarding transparency and participation, the investigating
authorities are required to inform parties of the information
needed to ensure a fair comparison, for instance, information
regarding adjustments, allowances, and currency conversion,
and may not impose an "unreasonable burden of proof"
on parties.
The Agreement contains rules
governing the calculation of dumping margins. In the
usual case, the Agreement requires either the comparison
of the weighted average normal value to the weighted
average of all-comparable export prices, or a transaction-to-transaction
comparison of normal value and export price (Article
2.4.2). A different basis of comparison can be used
if there is "targeted dumping": that is, if
a pattern exists of export prices differing significantly
among different purchasers, regions or time periods.
In this situation, if the investigating authorities
provide an explanation as to why such differences cannot
be taken into account in weighted average-to-weighted
average or transaction-to-transaction comparisons, the
weighted average normal value can be compared to the
export prices on individual transactions. |
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We have been providing inward and outward dumping
services to our valued clients for a long time. Over
the recent period, we have developed expert knowledge
on various dumping issues. S U Khan Associates’
experts keep you up to date on the developments that
affect your business, help you interpret their significance
and integrate product life cycle considerations into
your business strategy. Our antidumping consultancy
services include:
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Preparation of antidumping
case on behalf of local industry /applicant and
pursuing the same with the Investigating Authority
till the conclusion.
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Representing importer before
the Investigating Authority to safeguard their
interest, including providing technical assistance
to fill in importers questionnaire and to give
oral and written submission on the application
filed against their interest
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Representing foreign exporters/producers
before the Investigating Authority with a view to
file the foreign exporters/producer’s questionnaire
and to give oral and written submissions throughout
the investigation including comments on the application
filed against the exporters and representation in
hearings and disclosure meetings.
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Preparation of cost based system
to comply requirements of different countries i.e.
EU and others, and will help to retain and increase
your share of international trade. |
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