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    Anti-Dumping Under WTO Regime

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    Aashish Rathore
    The document summarizes anti-dumping procedures under the WTO regime. It outlines the historical background of anti-dumping laws and agreements. The key aspects covered are: (1) Anti-dumping duties can be imposed if dumping is determined to be occurring and is causing or threatening material injury to a domestic industry; (2) National authorities investigate allegations of dumping by comparing export prices to normal values and examining injury factors; (3) Investigations follow procedures set out in the WTO Anti-Dumping Agreement, including provisional measures, duties, and dispute settlement.

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    Anti-Dumping Under WTO Regime

    Uploaded by

    Aashish Rathore
    38 views22 pages
    The document summarizes anti-dumping procedures under the WTO regime. It outlines the historical background of anti-dumping laws and agreements. The key aspects covered are: (1) Anti-dumping duties can be imposed if dumping is determined to be occurring and is causing or threatening material injury to a domestic industry; (2) National authorities investigate allegations of dumping by comparing export prices to normal values and examining injury factors; (3) Investigations follow procedures set out in the WTO Anti-Dumping Agreement, including provisional measures, duties, and dispute settlement.

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    The document summarizes anti-dumping procedures under the WTO regime. It outlines the historical background of anti-dumping laws and agreements. The key aspects covered are: (1) Anti-dumping duties can be imposed if dumping is determined to be occurring and is causing or threatening material injury to a domestic industry; (2) National authorities investigate allegations of dumping by comparing export prices to normal values and examining injury factors; (3) Investigations follow procedures set out in the WTO Anti-Dumping Agreement, including provisional measures, duties, and dispute settlement.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    38 views22 pages

    Anti-Dumping Under WTO Regime

    Uploaded by

    Aashish Rathore
    The document summarizes anti-dumping procedures under the WTO regime. It outlines the historical background of anti-dumping laws and agreements. The key aspects covered are: (1) Anti-dumping duties can be imposed if dumping is determined to be occurring and is causing or threatening material injury to a domestic industry; (2) National authorities investigate allegations of dumping by comparing export prices to normal values and examining injury factors; (3) Investigations follow procedures set out in the WTO Anti-Dumping Agreement, including provisional measures, duties, and dispute settlement.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    Anti-Dumping under WTO

    Regime
    Anti-Dumping under WTO Regime
    • Historical Background 
    • Anti-dumping law was first introduced by Canada in 1903 
    • United States took initiative to introduce the anti-dumping duties in
    the Havana Charter as an exception to tariff bindings 
    • In Kennedy Round (1967) – “Anti-dumping Code” came into existence.
    This was officially entitled “Agreement on Implementation of Article
    VI of the GATT” 
    • This agreement has been further elaborated in Tokyo Round Code
    (1974) and Uruguay Round Code (1986) 
    • Uruguay Round Code (1986) – Anti-dumping Agreement came
    into existence.
    • Structure of Anti-dumping Agreement – 18 articles with two annexes
    Anti Dumping Duties 
    • Article VI of GATT defines dumping as a practice “by which products
    of one country are introduced into the commerce of another country
    at less than the normal value of the products”. 
    • To check such issue – anti-dumping duties are imposed for protection
    of domestic industries. 
    • Conditions:
    1. Dumping condition 
    2. Material injury or threatens to cause material injury condition 
    3. Causal link between dumping and material injury.
    • Article VI of GATT and Anti-dumping Agreement are the part of the
    same treaty – WTO Agreement.
    • Anti-dumping Agreement – essential for the interpretation of Article
    VI of GATT
    • Determination of Dumping 
    • Condition 1 
    • Essential components for determining dumping: - 
    • export price is less than normal value 
    • in the ordinary course of trade: trade between independent buyer
    and seller – transaction is at arms length - for the like product when
    destined for consumption in the exporting country.
    •  Article 2 of Agreement
    • Normal Value
    •  Article VI of GATT and Article 2 of Anti-dumping Agreement – three
    grounds for establishing Normal value
    • A. VI says “a product is to be considered as being introduced into the
    commerce of an importing country at less than its normal value, if the
    price of product exported from one country to another
    • price of like product sold in domestic market of exporting country; or
    •  price of like product, at which sold to any third country; or 
    • Constructed normal value: cost of production plus reasonable cost,
    profits In general practice countries prefer first and third ground for
    determining Normal value.
    • Export Price Refers to free on board (f.o.b) export price in the country
    of export. 
    • Article 2, Anti-dumping Agreement – constructive export price 
    • If concerned authorities find export price unreliable, because of
    association between importer and exporter, then 
    • Export price may be constructed on price at which imported products
    are first resold to an independent buyer 
    • Dumping margin Normal value – Export Price = Dumping margin
    • Determination of Injury
    • Condition 2 
    • Injury can be of three types: - material injury to domestic industry -
    threat to material injury to domestic industry - material retardation in
    the establishment of domestic industry: this test is applied where
    industry is yet to be established
    • Article 3 of anti-dumping agreement + paragraph 6 of Article VI
    • Article 3.4 of agreement – enumerates factors determining
    material injury: - 
    • Actual and potential decline in sale - profits, market share, output
    - productivity, - return on investments, or utilization of capacity…. 
    • Article 3.7 lists out the factors to determine threat to injury: - significant
    increase in dumping, 
    • sufficient increase in the production of exporting country, 
    • imports entering at prices have a significant depressing effect
    on domestic prices,
    • inventories of domestic industry
    • Condition 3
    • Causal link between dumping and injury shall be examined by
    authorities on the basis of relevant evidences Article 3.5 enumerates
    the list of factors that expresses causal link between dumping and
    injury: - 
    • Contraction in demand
    • Trade restrictive practices
    • Development of technology of domestic industry 
    • Export performance and productivity of the domestic industry.
    •  Investigation Article 5 of Agreement
    • Written application made by or on behalf of domestic industry 
    • Authorities examines accuracy and adequacy of evidence
    • Period of investigation: one year not more than 18 months
    • investigation terminated: 
    • Dumping margin determined as de minimis: -
    • If the margin of dumping is less than 2% of the export price
    • volume of dumped imports less than 3% of the total imports of the like article
    - volume of dumped imports collectively from all such countries is less than
    7% of the total imports
    • Investigation process in India 
    • Anti dumping measures in India are administered by the Directorate General
    of Anti dumping and Allied Duties (DGAD) functioning in the Dept. of Commerce
    in the Ministry of Commerce and Industry and the same is headed by the
    "Designated Authority".
    • Designated Authority - investigation and make recommendation to the
    Government 
    • Department of Commerce recommends the Anti-dumping duty, it is the Ministry
    of Finance, which levies such duty. 
    • Section 9A, Customs Tariff Act, 1975 
    • Imposition of anti-dumping duty = 5years
    • Application received by the Designated Authority is dealt with in the following manner:
    • A. Preliminary Screening: application scrutinized – sufficient evidence
    • B. Initiation: accuracy and adequacy of evidence
    • C. Access to Information: access to non-confidential evidence presented to interested parties
    • D. Preliminary Findings: within 60-70 days
    • E. Provisional Duty: not exceeding dumping margin – remain in force = upto 6 months
    extendable to 9 months
    • F. Disclosure of information: Designated Authority will inform all interested parties of the
    essential facts
    • G. Final Determination
    • H. Time-limit for Investigation Process: one year from the date of initiation - extended by the
    Central Government by 6 months.
    • Anti-dumping measures 
    • A. Provisional undertaking: voluntary undertaking from exporters – to revise its prices
    or cease exports to area in the question – so that authorities are satisfied that the
    injurious effect of the dumping is eliminated. 
    • A. 8 of Agreement 
    • B. Provisional measures: interim measures to prevent injury being caused during the
    investigation. This can take form of – provisional duty, security by cash deposit, etc. – 
    • A. 7 of Agreement. 
    • C. Anti-dumping Duty: imposed not beyond dumping margin 
    • (A.9) Injury > dumping margin = anti-dumping duty equal to dumping margin
    • Injury < dumping margin = anti-dumping duty equal to injury margin
    • Dispute Settlement
    • A. Review of Anti-dumping measures taken by members: Committee
    on Anti-Dumping Practices (A. 16)
    • B. Consultations and the settlement of disputes under this
    Agreement: the Dispute Settlement Understanding is applicable (A.
    17)
    • C. Dispute Settlement: Article 17.4, if the member that requested
    consultations has failed to achieve a mutually agreed solution – the
    matter could be referred to Dispute Settlement Body

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