Antidumping
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Antidumping Regulation (part two)

  • Article No. 6- Methods to assess injury

    • A- In investigation process to discover injury, the workgroup will consider:

      • Amount of dumped goods.

      • Absolute increase in amount of dumped goods and in scale of domestic products or domestic use.

      • Eventual increase in amount of dumped goods.

      • Amount of dumping and subsidies.

      • Effects of dumping on price of domestic like products.

      • Effects of dumping on domestic producers.

    • B- In investigation process to assess the effects of dumping on domestic producers, alongside with all economic indexes showing the situation of domestic producers, the workgroup will take into account:

      • Actual and potential decline in sale.

      • Profit decrease.

      • Output reduction.

      • Reduction in market shares.

      • Productivity reduction.

      • Reduction in investment return.

      • Reduction in production capacity utility.

      • Factors affecting domestic prices.

      • The magnitude of margin of dumping.

      • Actual and potential negative effects on cash flow.

      • Inventories.

      • Employment.

      • Wages.

      • Growth.

      • Ability to raise capital or investments.

    • C- After discovering dumping and its actual or potential injury on domestic producers, the workgroup should consider relationship between dumping and injury. The demonstration of relationship between the dumped imports and the injury to the domestic industry shall be based on an examination of all relevant evidences. Inter alia it should be proven that the amount of imported goods and dumping is causing injury and the injury is significant.

    • D- The workgroup shall also examine any known factors other than the dumped imports which at the same time are injuring the domestic industry. The injuries caused by these other factors must not be attributed to the dumped imports. Factors which may be relevant in this respect include, inter alia, the volume and prices of imports not sold at dumping prices, contraction in demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign and domestic producers, developments in technology and the export performance and productivity of the domestic industry.

    • E- In assessment of potential injury, alongside with factor stated in paragraph B, the workgroup will consider:

      • Characteristics of subsidies and their potential effects.

      • Rate of increase of dumped imports into the domestic market indicating the likelihood of substantially increased importation.

      • Sufficient freely disposable, or an imminent, substantial increase in, capacity of the exporter indicating the likelihood of substantially increased dumped exports to the domestic market, taking into account the availability of other export markets to absorb any additional exports.

      • Whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports.

      • Inventories of the product being investigated.

    • Note- Regarded to Paragraph B and E, none of these factors by itself can necessarily give decisive guidance but the totality of the factors considered must lead to the conclusion.

  • Article No. 7- Price Undertakings

    • A- The workgroup can suspend or stop investigation if the importer undertakes to revise its prices or to stop dumping. This rule also applies in case of subsidies if importer undertakes to revise its prices or if the government of importer undertakes to cease or restrict subsidies or to reduce their effects.

    • B- The workgroup can suggest price undertakings but no exporter shall be forced to enter into such undertakings. The fact that exporters do not accept an invitation to do so, shall in no way prejudice the consideration of the case. However, the workgroup is free to determine that a threat of injury is more likely to be realized if the dumped imports continue.

    • Note- The workgroup may require any exporter from whom an undertaking has been accepted to provide periodically information relevant to the fulfillment of such an undertaking and to permit verification of pertinent data. In case of violation of an undertaking, the workgroup may take expeditious application of provisional measures using the best information available. In such cases, definitive duties may be levied on products entered for consumption not more than 90 days before the application of such provisional measures, except that any such retroactive assessment shall not apply to imports entered before the violation of the undertaking.

  • Article No. 8- Provisional Measures

    • A- Provisional measures may be applied only if:

      • An investigation has been initiated in accordance with this regulation and a public notice has been given to that effect and interested parties have been given adequate opportunities to submit information and make comments.

      • A preliminary affirmative determination has been made of dumping and consequent injury to a domestic industry.

      • Application of provisional measures has been approved by Board of Ministers.

    • B- Provisional measures will take the form of a provisional duty by cash deposit equal to the amount of the antidumping duty provisionally estimated, being not greater than the provisionally estimated margin of dumping or subsidies.

    • C- Provisional measures shall not be applied sooner than 60 days from the date of initiation of the investigation.

    • D- The application of provisional measures shall be limited to as short a period as possible, not exceeding four months or, on decision of the Board of Ministers, upon request by exporters representing a significant percentage of the trade involved, to a period not exceeding six months. When these authorities, in the course of an investigation, examine whether a duty lower than the margin of dumping would be sufficient to remove injury, these periods may be six and nine months, respectively.

  • Article No. 9- Antidumping duties

    • A- Duties will take the form of cash deposit equal to the amount of margin of dumping or amount of subsidies.

    • Note- The workgroup can determine the duties less than margin of dumping or subsidies if it would be sufficient to redress the injury.

    • B- Duties will be applied indiscriminately to all dumping exporters except those who accepted price undertakings.

    • C- Duties will substitute provisional measures. Antidumping duty shall remain in force as long as and to the extent necessary to counteract dumping which is causing injury.

    • Note- Duration of duties is for five years. If the workgroup find out that in order to vitiate or neutering effect of duties a third country is intermediating in dumping, it can expand duties to this country too.

  • Other Articles of this regulation will be translated in future posts.

  • See Antidumping Regulation (part one)

  • See Antidumping Regulation (part three)

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