Anti dumping what is

Select the location in. You must provide value for at least one of the fields marked in red. Typically, dumping is a situation of international price discrimination. This is usually when the price of a product sold in the importing country is lower than the price of the goods in the market of the exporting one.

So, in the simplest of cases, dumping means comparing prices in two markets. But, the circumstances are rarely ever that straightforward. Usually, various analytical steps must be taken to decide the appropriate price in the market of the exporting country. These are based on examinations and recommendations from the Department of Commerce.

Part of the rationality behind anti dumping duties is to save domestic jobs. To promote and protect local businesses and markets, many companies enforce anti dumping laws and duties on products they believe are being dumped in their market. But, it does have the power to regulate how governments deal with dumping activities in their countries. Some governments react aggressively to foreign companies dumping in their territories. They do this by pushing punitive anti dumping duties on foreign products.

In such cases, the WTO may check to decide whether such actions are genuine ad justified, or whether they go against the WTO free-market principle.

Government officials to make inquiries, if appropriate, with the other country involved that could help you resolve your exporting problem. Disputes under the Anti-dumping Agreement can also, in certain circumstances, be resolved by the U.

You can also contact the Designated Monitoring Officer at the following address:. Home Trade Guide Anti-Dumping. Who benefits from this Agreement? How can this Agreement help my company? Substantive Requirements Since a determination of dumping requires a comparison between the export price of a product and its normal value in the exporting country, the AD Agreement sets forth rules for the calculation of export price and normal value.

Price Undertakings The Agreement provides that government authorities can suspend or terminate an anti-dumping proceeding if they receive voluntary undertakings from an exporter that it will revise its prices or cease exporting to the area in question at dumped prices. Imposition of Anti-dumping Duties Under the Agreement, it is up to the government of the importing country to decide whether or not to impose anti-dumping duties.

Can the U. Committee meetings. Share Notification obligations. Notification requirements Illustrative mock examples for certain notifications. List of disputes citing the anti-dumping agreement. Thus, the investigating authorities must develop analytical methods for determining what evidence is or may be relevant in a particular case, and for evaluating that evidence, taking account of other factors which may be causing injury.

Cumulative analysis refers to the consideration of dumped imports from more than one country on a combined basis in assessing whether dumped imports cause injury to the domestic industry. Obviously, since such analysis will increase the volume of imports whose impact is being considered, there is a greater possibility of an affirmative determination in a case involving cumulative analysis. The practice of cumulative analysis was the subject of much controversy under the Tokyo Round Code, and in the negotiations for the Agreement.

The authorities must determine that the margin of dumping from each country is not de minimis, that the volume of imports from each country is not negligible, and that a cumulative assessment is appropriate in light of the conditions of competition among the imports and between the imports and the domestic like product. De minimis dumping margins and negligible import volumes are defined in the Agreement.

Agreement Article 5 of the Agreement establishes the requirements for the initiation of investigations. The Agreement establishes requirements for evidence of dumping, injury, and causality, as well as other information regarding the product, industry, importers, exporters, and other matters, in written applications for anti-dumping relief, and specifies that, in special circumstances when authorities initiate without a written application from a domestic industry, they shall proceed only if they have sufficient evidence of dumping, injury, and causality.

In order to ensure that investigations without merit are not continued, potentially disrupting legitimate trade, Article 5. In order to minimize the trade-disruptive effect of investigations, Article 5. Article 6 of the Agreement sets forth detailed rules on the process of investigation, including the collection of evidence and the use of sampling techniques.

It requires authorities to guarantee the confidentiality of sensitive information and verify the information on which determinations are based. In addition, to ensure the transparency of proceedings, authorities are required to disclose the information on which determinations are to be based to interested parties and provide them with adequate opportunity to comment. The Agreement establishes the rights of parties to participate in the investigation, including the right to meet with parties with adverse interests, for instance in a public hearing.

Further guidance on the conduct of investigations is contained in two Annexes to the Agreement, which set forth rules for the on-the-spot investigations to verify information obtained from foreign parties, as well as rules for the use of best information available in the event a party refuses access to, or does not provide, requested information, or significantly impedes the investigation.

Article 7 of the Agreement provides rules relating to the imposition of provisional measures. These include the requirement that authorities make a preliminary affirmative determination of dumping, injury, and causality before applying provisional measures, and the requirement that no provisional measures may be applied sooner than 60 days after initiation of an investigation.

Provisional measures may take the form of a provisional duty or, preferably, a security by cash deposit or bond equal to the amount of the preliminarily determined margin of dumping. If a Member, in its administration of anti-dumping duties, imposes duties lower than the margin of dumping when these are sufficient to remove injury, the period of provisional measures is generally six months, with a possible extension to nine months at the request of exporters.

Article 8 of the Agreement contains rules on the offering and acceptance of price undertakings, in lieu of the imposition of anti-dumping duties. It establishes the principle that undertakings between any exporter and the importing Member, to revise prices, or cease exports at dumped prices, may be entered into to settle an investigation, but only after a preliminary affirmative determination of dumping, injury and causality has been made.

It also establishes that undertakings are voluntary on the part of both exporters and investigating authorities. In addition, an exporter may request that the investigation be continued after an undertaking has been accepted, and if a final determination of no dumping, no injury, or no causality results, the undertaking shall automatically lapse.

Article 9 of the Agreement establishes the general principle that imposition of anti-dumping duties is optional, even if all the requirements for imposition have been met. Under a lesser duty rule, authorities impose duties at a level lower than the margin of dumping if this level is adequate to remove injury. In addition, the Agreement contains rules intended to ensure that duties in excess of the dumping margin are not collected, and rules for applying duties to new shippers. The Agreement sets forth the general principle that both provisional and final anti-dumping duties may be applied only as of the date on which the determinations of dumping, injury and causality have been made.

However, recognizing that injury may have occurred during the period of investigation, or that exporters may have taken actions to avoid the imposition of an anti-dumping duty, Article 10 contains rules for the retroactive imposition of dumping duties in specified circumstances. If the imposition of anti-dumping duties is based on a finding of material injury, as opposed to threat of material injury or material retardation of the establishment of a domestic industry, anti-dumping duties may be collected as of the date provisional measures were imposed.

If provisional duties were collected in an amount greater than the amount of the final duty, or if the imposition of duties is based on a finding of threat of material injury or material retardation, a refund of provisional duties is required.

Article Article 11 of the Agreement establishes rules for the duration of anti-dumping duties, and requirements for periodic review of the continuing need, if any, for the imposition of anti-dumping duties or price undertakings. These requirements respond to the concern raised by the practice of some countries of leaving anti-dumping duties in place indefinitely.

The Agreement requires authorities to review the need for the continued imposition of a duty upon request of an interested party. Article 12 sets forth detailed requirements for public notice by investigating authorities of the initiation of investigations, preliminary and final determinations, and undertakings. The public notice must disclose non-confidential information concerning the parties, the product, the margins of dumping, the facts revealed during the investigation, and the reasons for the determinations made by the authorities, including the reasons for accepting and rejecting relevant arguments or claims made by exporters or importers.

These public notice requirements are intended to increase the transparency of determinations, with the hope that this will increase the extent to which determinations are based on fact and solid reasoning. Previous Agreements As tariff rates were lowered over time following the original GATT agreement, anti-dumping duties were increasingly imposed, and the inadequacy of Article VI to govern their imposition became ever more apparent.

Determination of dumping back to top Determination of normal value General rule 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. Insufficient volume of sales If there are sales below cost that meet the criteria set out in the Agreement, they can simply be ignored in the calculation of normal value, and normal value will be determined based on the remaining sales.

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. Third country price as normal value The other alternative method for determining normal value is to look at the comparable price of the like product when exported to an appropriate third country, provided that price is representative.

Indirect exports In the situation where products are not imported directly from the country of manufacture, but are exported from an intermediate country, the Agreement provides that the normal value shall be determined on the basis of sales in the market of the exporting country.

Non-market economies In the particular situation of economies where the government has a complete or substantially complete monopoly of its trade and where all domestic prices are fixed by the State, GATT and the Agreement recognize that a strict comparison with home market prices may not be appropriate.