If a positive finding is based on injury to a regional industry, the Agreement obliges the investigating authorities to limit customs duties on goods dispatched for final consumption in the region concerned, to the extent constitutionally possible. Where a Member`s constitutional law prohibits the imposition of duties on imports into the region, the investigating authorities may impose full duties on all imports of the product where anti-dumping duties cannot be limited to imports from certain producers supplying the region. However, before imposing these duties, investigating authorities must give exporters the opportunity to cease dumping in the region or to make a price undertaking. Article 8 of the Agreement establishes rules for the offer and acceptance of price undertakings instead of the imposition of anti-dumping duties. It establishes the principle that undertakings may be entered into between any exporter and the importing Member with a view to altering prices or discontinuing exports at dumped prices in order to settle an investigation, but only after a provisional positive finding of dumping, injury and causation has been made. It also notes that the obligations of exporters and investigating authorities are voluntary. In addition, an exporter may request that the investigation be continued after the acceptance of an undertaking and if a definitive conclusion is made that no dumping, injury or causation has been established, the undertaking automatically lapses. The Agreement provides that the investigating authorities of the importing Member must establish injury in order to impose anti-dumping measures. The agreement defines the term „injury“ as either (i) material injury to a domestic industry, (ii) the risk of material injury to a domestic industry, or (iii) material retardation in the establishment of a domestic industry, but it does not take into account the assessment of material retardation in the establishment of a domestic industry.
The agreement establishes criteria for assessing whether material injury is being caused or threatened and the factors to be taken into account in determining the impact of imports on the domestic industry. Where a safeguard measure is imposed, it should be applied only to the extent necessary to prevent or remedy serious injury and to assist the industry concerned in adapting. Where quantitative restrictions (quotas) are introduced, import volumes should not, as a general rule, fall below the annual average over the last three representative years for which statistics are available, unless it is clearly justified that a different level is necessary to prevent or remedy material injury. The agreement requires proof that there is a causal link between the dumped imports and the injury suffered by the domestic industry. This evidence shall be based on a review of all relevant evidence. The Agreement does not specify any specific factors and does not provide guidance on how relevant evidence is to be assessed. However, Article 3.5 requires that known factors other than dumped imports that could cause injury be examined, provides examples of factors (such as changes in the structure of demand and technological developments) that may be relevant, and clarifies that injury caused by these other factors cannot be attributed to dumped imports. Therefore, investigating authorities need to develop analytical methods to determine which evidence is or may be relevant in a particular case and to assess that evidence taking into account other factors that may cause injury. The Agreement stipulates that Member States must inform the Committee on Anti-Dumping Practices without delay and in detail of all provisional and definitive anti-dumping measures. They must also report on all investigations twice a year.
When disputes arise, members are encouraged to consult with each other. They may also have recourse to the WTO dispute settlement procedure. ● Members` semi-annual reports on anti-dumping measures The anti-dumping duty is a duty a dutyA tariff is a form of tax levied on imported goods or services. Tariffs are a common element in international trade. The main objectives of taxing foreign-made imports below market value relate to the actual value of an asset – a product, inventory or security – agreed upon by both the seller and the buyer. Fair value applies to a product that is sold or traded on the market to which it belongs or under normal conditions – not to a product that is liquidated. of like products on the domestic market. The government imposes anti-dumping duties on foreign imports if it considers that the goods are being „dumped“ in the domestic market because of low prices. Anti-dumping duties are imposed to protect local businesses and markets from unfair competition from foreign imports. A review of recent case law, illustrating as an example the application of criminal liability to anti-dumping offences, is warranted in order to better understand the application of these principles to companies operating in the United States. Anti-dumping investigations will be terminated immediately if the authorities find that the dumping margin is negligible (defined as less than 2 % of the export price of the product).
Other conditions are also set. For example, investigations must also be terminated if the volume of dumped imports is negligible (i.e. where the volume from a country represents less than 3 % of total imports of that product, although investigations may be carried out when several countries, each of which provides less than 3 % of imports, together account for 7 % or more of total imports). These semi-annual committee meetings provide members with an opportunity to discuss anti-dumping measures and practices identified as problematic, to obtain information on specific issues of concern, and to clarify and possibly resolve issues before they become disputes. Some governments sometimes react harshly to foreign companies that engage in dumping activities by imposing anti-dumping duties on foreign imports, and the WTO can intervene to determine whether the measures are real or violate the WTO`s free market principle. Capitalism Capitalism is an economic system that allows and promotes private ownership of companies operating for profit. Capitalism, also known as the market system, is characterized by private land ownership rights, competitive markets, stable rule of law, and freely functioning capital markets. Article 11 of the Agreement lays down rules for the duration of anti-dumping duties and requirements for the periodic review of the possible need to impose anti-dumping duties or price undertakings. These requirements take into account the concern raised by the practice of some countries to maintain anti-dumping duties indefinitely […].