A brief introduction to anti dumping law
They come into play when a foreign company is selling an item significantly below the price at which it is being produced.
Anti dumping agreement notes
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. Thus, the Agreement recognizes that in some cases sales in the home market may be so low in volume that they do not permit a proper comparison of home market and export prices. Part of the logic behind anti-dumping duties is to save domestic jobs, but they can also lead to higher prices for domestic consumers and reduce the international competition of domestic companies producing similar goods. The investigating authorities are precluded from including in the calculation of that weighted average dumping margin any dumping margins that are de minimis, zero, or based on the facts available rather than a full investigation, and must calculate an individual margin for any exporter or producer who provides the necessary information during the course of the investigation. Int'l L. In general, the WTO agreement allows governments to "act against dumping where there is genuine material injury to the competing domestic industry. Adjustments in case of constructed export price The Agreement also provides specific rules on the adjustment to be made if the comparison of normal value is to a constructed export price. However, exclusion of these below-cost sales may result in a level of sales insufficient to determine normal value based on home market prices. While that review is in progress, the authorities may request guarantees or withhold appraisement on imports, but may not actually collect anti-dumping duties on those imports. Exceptions There may be no export price for a given product, for instance, if the export transaction is an internal transfer, or if the product is exchanged in a barter transaction.
Alternative method of calculation The Agreement provides that in circumstances where there is no export price, or where the export price is unreliable due to an association or compensatory arrangement between the exporter and the importer or a third party, an alternative method may be used to determine the export price.
Alternative bases for calculating normal value Two alternatives are provided for the determination of normal value if sales in the exporting country market are not an appropriate basis.
Part of the logic behind anti-dumping duties is to save domestic jobs, but they can also lead to higher prices for domestic consumers and reduce the international competition of domestic companies producing similar goods.
John J. Key Takeaways An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. The Agreement recognizes that, in such cases, an alternative method of determining an appropriate export price for comparison is needed.
If a Member allows importation and collects an estimated anti-dumping duty, and only later calculates the specific amount of anti-dumping duty to be paid, the Agreement requires that the final determination of the amount must take place as soon as possible, upon request for a final assessment.
based on 113 review