Antidumping
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Antidumping Regulation (part one)

In 6/6/2017 the “Board of Ministers” adopted a regulation to prevent and confront dumping. In this post, we will translate and explain important parts of this regulation.

  • Article No. 1- definitions:

    • Dumping: importing goods into Iran market at price lower than usual price.

    • Usual price: comparable price in ordinary course of trade for like products domestic market of exporting country. (detailed in Article No. 4)

    • Non-market economy: an economic system with a governmental control over prices and expenses in which the selling price could not reflect the reasonable price.

    • Antidumping measures: measures employed to confront negative effects of dumping. (detailed in Article No. 7 to 9)

    • Margin of dumping: the difference between exporting price and usual price.

    • Subsidy: any governmental financial aid to the exporting goods. Subsidies will be conducted as dumping if they are:

      • For a particular industrial firm or a group of firms, or

      • For firms active in exporting country.

    • Like products: similar products or products which their specifications are likewise in all respects. If there were not any similar products, products with more similarity will be considered as like products.

    • Domestic producers: domestic producers as a whole of the like products or those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products. Producers which work with foreign exporters and also importer of like products are not domestic producers. (detailed in Article No. 5)

    • Injury: a significant loss to domestic producers. (in antidumping assessments)

    • Serious Injury: a significant loss to domestic producers. (in countervailing assessments)

    • Beneficiaries:

      • Domestic producers, or their guild, or government as their representative.
      • Foreign country, foreign producers or exporters, importers, or their guild.
      • Major consumers and industrial and agricultural consumers.
  • Article No. 2 and 3-

    • A workgroup consist of representatives from Ministries of “Industry, Trade and Mines”, “Economy and Finance”, “Agriculture”, and other related organizations is responsible for:

      • To receive applications for investigation of dumping.
      • To decide about investigation.
      • Early assessment about countervailing measures.
      • Managing the process of investigation.
      • Implementing “Pricing Obligations” under Article No. 7.
      • To issue “Public Notice” under Article No. 11.
  • Article No. 4-

    • A- In order to determine margin of dumping, the workgroup will compare weighted average of usual price with weighted average of prices of all comparable exporting transactions. Another method is to compare every single transaction which involves usual price with each exporting transaction.

      • Note: In case of importing through an intermediate country, the comparable price is the price in this country unless:

        • The intermediate country does not have a comparable price.
        • The products are merely transshipped through the intermediate country.
        • Not any productive activity took place over the products in intermediate country.
    • B- If the price in exporting country was not available, price of like products exported to other countries will be considered as usual price providing that in statistical scale this price could be considered as normal price of products. Substitute method is “calculative normal price” which is production costs plus an amount for profit and an amount for other expenses.

    • C- If export price was unavailable and also if the workgroup recognizes that this price is not trustworthy (because of partnership or dependence or other relations between importer and exporter and other persons) the export price is the price which an independent customer paid for the products. If there were no independent customer and also if the nature and qualification of products have been changed, the workgroup will determine export price.

    • D- In Non-Market economies in which the domestic price consider to be unreal, the usual price will be determined by evaluation of production costs and observing prices in other countries with market economy.

    • E- In assessment of dumping and for a fair compare between export price and usual price:

      • The comparable prices should belong to similar phase of trade (usually in EXW).
      • Time of sales should be as close as possible.
      • In any case if the differentiations results in unfair compare, the workgroup will consider some adjustments.
      • The differentiations that result in unfair compare are:

        • Difference between sale conditions.
        • Taxes.
        • Level of trades.
        • Quantity.
        • Physical conditions and any other differences which affects the comparison between prices.
      • If it was impossible to compare between export price and usual price, the workgroup will determine the usual price by using above mentioned factors and applies due adjustments.

  • Article No. 5- Process of investigation:

    • A- Each member of workgroup and “domestic producers” or their representative can request for an investigation.

    • B- This request should include documents to prove dumping and or subsidies and an injury caused by dumping or subsidies.

    • Note- In case of request by domestic producers, the production share of these producers must be at least 25 percent of the whole productions of like products. If some of domestic producers were oppose to investigation, the production share of applicants must be more than 50 percent of whole productions of like products produced by applicant’s producers and opposite producers. This rule also applies to all other types of investigation requests.

    • C- If the workgroup decides not to start investigation will declare the decision to the board of ministers to final decision. If the workgroup decides to start investigation will declare to the government of exporting country.

    • D- The workgroup can collect data about the case through questionnaire, sample, and etc.

    • E to I- These clauses are about procedure of investigation and rule of law and fair trial.

    • J- In case that Margin of dumping or subsidies or quantity of importing products is negligible, and also if the injury is imperceptible the investigation will stop immediately. Margin of dumping is negligible if it is less than 2 percent of exporting price. Quantity of importing product is negligible if it is less than 3percent of importing of like products for one country and less than 7 percent for more than one country in which each country imports less than 3 percent of like products into Iran market. Subsidies are negligible if they are less than 1 percent of value of importing products.

    • K to O- These clauses and their notes are about confidentiality of information and nondisclosure obligations.

  • See Antidumping Regulation (part two)

  • See Antidumping Regulation (part three)

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