WHAT IS DUMPING?

Dumping occurs when foreign producers

sell their products to an importer in the
domestic market at prices lower than in
their own national markets, or at prices
below cost of production, the sale or
importation of which injures or
threatens to injure a domestic industry
producing like or comparable products
or retards the establishment of a
potential industry. It is a form of price
discrimination between two national
markets.

Elements of Dumping :
Like Product product produced by the
domestic industry which is identical or alike
in all respects to the article under
consideration, or in the absence of such a
product, another product which, although
not alike in all respects, has characteristics
closely resembling those of the product
under consideration.

 Price Difference amount by which the normal

value (the price prevailing in the exporting country)
exceeds the export price (selling price to an
importer in the Philippines).
Injury means material injury to a domestic
industry , threat of material injury or material
retardation of the establishment of a domestic
industry. Injury test must be based on positive
evidence and shall involve an objective examination
of both
a. The volume of the dumped imports and the
effect of imports on prices in the domestic market
for like product, and
b. The consequent impact of these imports on the
domestic producers of such products.

 Causal Link refers to a finding that the

material injury suffered by the domestic
industry is the direct result of the
importation of the dumped product. It must
be clear that the injury suffered is directly
attributable to the alleged dumping.

What is Normal Value?

The foreign producers domestic selling price
is referred to as the normal value of the
article. It is the comparable price in the
ordinary course of trade for the like product
when destined for consumption in the country
of export.

What is export price?

Export Price refers to ;
1. The ex-factory price at the point of sale for
export.
2. The price assessed at the free-on-board (F.O.B.)
level (at the point of shipment) of the alledgedly
dumped product
In cases where (1) or (2) cannot be used, the
export price maybe constructed based on such
reasonable bases as the Secretary of Trade and
Industry/Agriculture or the Commission may
determine.

What is an arms length transaction?

Refers to a transaction where the price is not
affected by any relationship between the
buyer and the seller, or the seller, or if there is
no compensation, reimbursement, benefit, or
other consideration given in respect of the
price.

What is Domestic Industry?

Refers to the domestic producers of like products
as a whole or those whose collective output of
the products constitutes a major proportion of
the total domestic production of those products
in the industry concerned. When producers are
related to the exporters or importers or are
themselves importers of the alleged dumped
articles, the term domestic industry may be
interpreted a referring to the rest of the
producers.

What is meant by Comparable

Price?
The domestic price of the product in the
exporting country at the same level of trade
which is sold or offered for sale at wholesale
on the date of exportation to the Philippines.

What is a Country of Export

The country from where the allegedly dumped
product was shipped to the Philippines,
regardless of the location of the seller. The
country of export and the country of origin
may be the same but not in all instances.

What is Country of Origin

Is the country where the allegedly dumped
product either was wholly obtained or where the
last substantial transportation took place. The
country of origin and the country of export
maybe the same, but not is all instances. In case
of transshipment where a product is shipped
from a third country that is not the country
where the product was manufactured or
processed, the country of origin would be
different from the country of export.

Who is a new foreign exporter?

Is an exporter who did not export the allegedly
dumped product during the investigation period.
What is meant by non-selective foreign exporter
or producer?
* Refers to a foreign exporter or producer who has
not been initially selected for the purpose of
computing the individual margins of dumping.

What is meant by non-market

economy?
Refers to the country of export or origin where
the government
(1) has a monopoly, or substantial monopoly of
trade.
(2) Determines or substantially influences the
domestic prices of the products in that
country .

THE MODES IN DETERMINING THE

PRICE EFFECTS OF DUMPED
IMPORTS
Price Depression
Price Suppression
Price Undercutting

What is price depression?

Refers to the extent by which the domestic
producer reduces its selling price in order to
compete with the allegedly dumped product.

What is price suppression?

refers to the extent by which the allegedly
dumped product prevents the domestic producer
from increasing the selling price of its own like
product to a level that will allow full recovery of
its cost of production.

What is price undercutting?

Is the extent by which the allegedly dumped
product is consistently sold at a price below
the domestic selling price of the like product.
When does transshipment occur?
There is transshipment when the allegedly
dumped product is not imported directly
from the country of origin but is physically
shipped through a third country without,
however, entering in the commerce thereof.

Articles covered by anti-dumping protest:

May cover any specific kind or class of a
foreign product which is being imported, sold
or is likely to be sold into the Philippines at a
price less than its normal value, the
importation or sale of which might injure or
retard the establishment of or is likely to
injure an industry producing like products in
the Philippines.

Importations exempted from anti-dumping

protest:
Products imported by, or consigned to
government agencies not organized for profit
and particularly designated by law or proper
authorities to import directly or through
awardees, such articles as ould be stabilized
and/or supplement shortages.
Conditionally-duty
free
importations
enumerated under Section 105 of TCCP, as
amended.

LEGISLATION
What is Anti-Dumping Act of 1999
- Republic Act 8752, otherwise known as the
Anti-Dumping Act of 1999 was signed on
August 12, 1999 and took effect on
September 4, 1999. It amended Section
301 of the TCCP, which provides
protection to a domestic industry which is
being injured or likely to be injured by the
dumping of products imported into or
sold in the Philippines.

Rationale for the passage of RA 8752

To transform the domestic anti-dumping law into a
more workable and simple piece of legislation
providing the safety against the inflow of cheap
dumped imports.
To strengthen the rules governing the investigation
of anti-dumping cases, and
To align the domestic law with the WTO Agreement
on Anti-Dumping Practice (Article VI of the GATT
1994)

Issuances Promulgated to Implement

RA 8752:
Joint Administrative Order No. 1 series of
2000 Implementing Rules and Regulations
of RA 8752 which took effect on July 2000.
Tariff Commission Order No. 00-01
prescribes the internal rules and regulations
governing
the
conduct
of
formal
investigation by the Tariff Commission under
Section 301 of the TCCP, as amended by RA
8752. The order took effect on July 5, 2000.

Government Agencies who Administer the

Anti-Dumping Legislation
Department of Trade and Industry Bureau
of Import Services (DTI-BIS) or Department of
Agriculture receives the properly
documented application (DTI) for industrial
goods and DA for agricultural products;
determines whether or not a prima facie case
exists to warrant initiation of investigation;
and conducts preliminary investigation to
determine whether or not provisional
measure (dumping bond) maybe imposed.

The Secretary of either Department issues the

Department Order on the results of the
investigation and implementation thereof.
Tariff Commission conducts the formal
investigation
and
makes
the
final
determination for purposes of the imposition
of the definitive anti-dumping duty.
Bureau of Customs takes charge in the
imposition
of
the
anti-dumping
measurement.

Procedures being undertaken for Anti-Dumping

Protest:
Who may file an anti-dumping protest?

- A protest may be filed by or on behalf of the

domestic industry in writing and embodied in a
notarized for.
- Under the law, the applicant (protestant) is required
to post a surety bond to answer for any damages
which the importer/protestee may sustain by
reason of the filing of frivolous petition, to be
released only upon affirmative preliminary
determination.

What constitute a Domestic Industry?

Domestic Industry refers to the domestic
producers as a whole or to those whose
collective output of the products constitutes a
major proportion of the total domestic
production of those products in the industry
concerned.
When producers are related to the exporters or
importers or are themselves importers of the
alleged dumped articles, the term domestic
industry may be interpreted as referring to the
rest of the producers.

Threshold of Support by Producers for the

Protest to be accepted :
Support by domestic producers whose
collective output constitutes more than 50%
of the total production of the like product
produced by the domestic industry.
Support by producers accounting for at least
25% of the total domestic production of the
product alleged to be dumped.

Under what condition an anti-dumping

investigation can be initiated without a written
applicationfrom the domestic industry?
In special circumstances, DTI or DA, on its
own motion, initiate an anti-dumping
investigation without having received a
written application by or on behalf of a
domestic industry. The concerned authorities
should have sufficient evidence of dumping,
injury and a causal link to justify the
initiation of the investigation

What information are required when applying for

the levy of anti-dumping duty?
Volume of the domestic production of the
producers making the application
Description of the alleged dumped product.
Names of the exporting countries, each known
exporter or foreign producer, and a list of the
importers of the products, and
Information on dumping such as (i) prices at which
the product is sold in the domestic market of the
exporting country, and export prices; (ii)injury and
causality; (iii) volume of dumped imports; and (iv)
adverse effects of such imports on domestic prices
and on the domestic industries.

STAGES IN AN ANTI-DUMPING
INVESTIGATION
PRIMA FACIE DETERMINATION - The DTI-BIS or DA, upon
acceptance of the properly documented protest/application,
has 5 working days to decide whether the facts would
constitute a dumping case.
PRELIMINARY DETERMINATION Once a prima facie case
has been established, DTI-BIS or DA initiates the
investigation which includes notification to the government
of the country of export or origin and all known interested
parties, and distribution of questionnaire to all concerned
parties. DTI or DA has 30 working days from receipt of the
answer to the questionnaire to make its preliminary
determination of the need for the imposition of a
provisional anti-dumping duty.

 In the conduct of its

formal investigation, the Commission notifies
all
interested
parties;
receives
representations and/or other submissions;
holds preliminary conference and public
consultations; and conducts on site
investigation/data verification both foreign
and domestic. The Commission has 120 days
from receipt of the advice from either
Secretary of DTI or DA to complete its
investigation ad submit its report of findings
to the Secretary.

FINAL DETERMINATION

 Issuance of Department Order Within ten (10) days

from receipt of the affirmative final determination by
the Commission, The Secretary of DTI or DA issue a
Department Order for the imposition of an antidumping measure, unless the Secretary has earlier
accepted an undertaking from the foreign exporter to
increase prices or cease exportation at dumped
prices.
-In case of a negative determination, either Secretary
shall issue through the Secretary of Finance, after the
lapse of the period for the petition to appeal to the
Court of Tax Appeals, an Order for the Commissioner
of Customs to immediately release the anti-dumping
bond to the importer.

The remedies/measures imposed against

Dumping :
Provisional Measure takes the form of a provisional duty or preferably, a
security by cash deposit or bond equal to the estimated difference
between the normal value and the export price of the protested article,
the former being higher than the latter. It is applied only after the DTI-BIS
or DA has made a preliminary affirmative determination no sooner that 60
days from the initiation of the case.
Definitive Duty final anti dumping duty imposed, in addition to the
regular duty and other charges on a protested product imported from a
specific country following an affirmative final determination.
Duration of the Imposition of anti-dumping measures :
*Provisional Measure four (4) months, extendable to six (6) months
upon request by the exporter.
*Definitive anti-dumping duty five (5) years from the date of imposition

Price Undercutting
Is a voluntary commitment by the exporter to increase his
price or to ease exporting to the Philippines at a dumped
price, thereby eliminating the material injury to the domestic
industry. Offer of price undertaking shall be made only after a
preliminary affirmative determination of dumping injury to
the domestic industry. An undertaking to increase prices or
cease exportation at dumped prices may be rejected if its
acceptance is impractical, e.g. the number of actual or
potential foreign exporters is too large, or other reasons,
including reasons of general policy.
Price undertaking is effective for a period of five (5) years
unless the foreign exporter proves to the satisfaction of the
authorities that the undertaking is no longer necessary.

Lesser Duty Rule

Lesser duty rule is the imposition of antidumping duty in amounts lower than the
foreign exporter proves to the satisfaction of
the authorities that the undertaking is no
longer necessary.

The reviews available to the affected parties of antidumping measures:

A. Administrative Reviews :
Sunset Review maybe initiated by any interested party or upon own motion of the
Commision before the sunset date (i.e., the 5th year) to determine whether the expiry of
the anti-dumping duty would likely lead to a continuation or recurrence of dumping and
injury.
Interim Review conducted by the Commission motu proprio, or upon the direction of
the Secretary, or upon petition of any interested party to determine whether (i) the need
for the continued imposition of the anti-dumping duty is no longer necessary to offset
dumping taking into consideration the need to protect the existing domestic industry; or
(ii) the existing duty is not sufficient to counteract the dumping which is causing injury.
Atleast one (1) year should have elapse since the imposition of the anti-dumping duty
before an interim review can be made.
Newcomer Review carried out an accelerated basis for the purpose of determining
individual margins of dumping for new exporters (new shippers) in the exporting country
in question which have not exported the product during the period of investigation on
which the measures were based. The new foreign exporters requesting for such review
must not be related to any foreign exporter who is subject to the anti-dumping duty.

 Judicial Review
Aggrieve and/or interested party may file a
petition for review with the Court of Tax
Appeals within thirty (30) days from receipt
of notice of the final ruling on the
imposition of an anti-dumping duty. Filing
of such petition for review shall not in any
way stop or suspend the imposition and
collection of the anti-dumping duty.