TARIFF Trade Remedy Measures
It is a measures not in form of TARIFF which protect our local industry from unfair trade practices.
TRADE REMEDY MEASURES
Trade remedy measure to protect domestic industries against unfair trade practice caused by dumping
Anti- Dumping Measure
-Export of a product at a price less than its normal value
-Form of PRICE DISCRIMINATION or differentiation between two national markets.
DUMPING
What are the 4 ELEMENTS OF DUMPING
-Like product
-Price difference
-Material injury
-Causality
Product which is identical or alike in all respect to the product under consideration or in the absence of such product, another product which, although not alike in all respect, has characterostics closely resembling those of the product under consideration.
Like Product
What relevant factors of LIKE PRODUCT
•Physical characteristics
•Mfg. methods and technology
•Functions and use
•Industry specification
•Pricing distribution and marketing
•Tariff Classification
Refers to the DOMESTIC PRODUCERS of like products as a whole or to those whose collective output constitutes a major proportion of the total domestic production of those products in the industry concerned.
Domestic Industry
Amount by which the normal value ( the price prevailing in the exporting country ) exceeds the export price ( selling price to an importer ).
Price Difference
Dumping margin
DM = NV - EP
or if expressed in %:
DM = NV - EP
_________
EP
Fair comparison must be made betweeen normal value and export price
Determination of Dumping Margin
Known as exporter ( Exporter specific)
Individual margin of dumping
It is Foreign producers domestic selling price
Normal Value
It is the ordinary course of trade for the like products which destined for consumption in the exporting country
Comparable price
• Price paid or the selling price to an importer;
• Ex - factory price at the point of sale for export; or
• Free - on - board ( FOB ) price at the point of shipment.
Export Price
2 Alternative Export price
• Constructed or deductive price
• Reasonable price
Refers to a domestic industry ( current or present injury ), threat of material injury ( future injury ) or material retardation of the establishment of a domestic industry.
Material injury
3 Modalities in determining the price effect of dumped imports
1. Price Undercutting
2. Price Depression
3. Price Suppression
Refers to the extent at which the alledgedly dumped product is consistently sold at price below the domestic selling price of the like product.
Price Undercutting
Refers to the extent at which the domestic producer reduces its selling price in order to complete with the allegedly dumped product
Price Depression
Refers to the extent by which the allegedly dumped product prevents the domestic producer from increasing its selling price to a level that will allow full recovery of its cost of production.
Price Suppression
Refers to the "overall assessment"
that the material injury suffered by the domestic industry is the direct result of the importation of the dumped imports.
Causality/ Causal link
In Provisional Measure :
Not applied sooner
than 60 days from initiation of investigation
duration: 4 to 6 months
- Agreement by which exporters under invertigation undertake to allign their export prices to their normal value
- Price increase should not be higher than the margin of dumping
- Proceedings may be suspended or terminated
Price Undertaking
Price Undertaking expires after ?
5 years unless revoked earlier
Cash deposiy or bond equal to the amount of provisionally estimated margin or dumping
Provisional Measure
Trade measure adopted by the government to offset any bounty or subsidy given to exporters which is not generally available to other producers of the exporting country.
Subsidies and Countervailing Measures
4 Elements of Countervailing
1. Like product
2. Subsidy
3. Material injury and
4. Causality
• Any specific assistance, e.g. financial contribution, income or price support schemes) directly or indirectly provided by the government of the country of export or origin i respect of the product imported into the country.
• An industry is deemed to have received subsidy where a benefit if conferred.
Subsidy
•Specific, e.i. explicity limited to an enterprise or group of enterprises, industry sector or group of industries
•Actionable subsidies are those falling under the definition of subsidies are those falling under the denifinition of subsidy which are neither non-actionable nor prohibited subsidies
Countervailable subsidy
( YELLOW)
Include export subsidies, i.e., those that are contingent on export performance, and subsidies that are contingent on the use of domestic over imported goods.
Prohibited subsidy (RED)
Are those which are permitted as they are of general nature, i.e., applied across- the- board to all industries ad not limited to a specific industry or limited to a specific industry or enterprise or group of enterprises or industries.
Non- actionable Subsidy (GREEN)
Trade remedy measure to protect the domestic industry from import surge
Safeguard measure
( tariff increase, tariff quotas or quantitative restrictions) that may be taken to allow a country, whose domestic indistry is seriously injured by increased but fairly traded imports, time to adjust to foreign competition.
Safeguard measure:
Temporary measures
Safeguard measure LEGISLATION
RA 8800 or Safeguard Measures Act on july 19 2000 took effect on August 2000 (Section 712 of the CMTA, RA 10863)
Stages of investigation RA 8752
Prima facie
- 5working days from the acceptance of the properly documented application
Preliminary
- 30 working days from the receipt of the answer to the questionnaire
Final Determination
- TC will conduct formal investigation within 120 days from the advice of DTI/DA
Issuance of departmental order
-10 days from the receipt of affirmative final determination from TC
Stages of investigation RA 8751
Prima facie
- 10 days from the acceptance of the properly documented application
Preliminary
- 20 days from the receipt of the answer to the questionnaire
Final Determination
- TC will conduct formal investigation within 120 days from the advice of DTI/DA
Issuance of departmental order
-10 days from the receipt of affirmative final determination from TC
Stages of Investigation RA 8800 GENERAL
Prima facie
- 5 calendar days from the acceptance of the properly documented application
Preliminary
- 30 calendar days from the receipt of the answer to the questionnaire
Final Determination
- TC will conduct formal investigation within 120 days from the advice of DTI/DA. or 60 days if URGENT
Issuance of departmental order
-15 calendar days from the receipt of affirmative final determination from TC
Stages of Investigation RA 8800 SPECIAL
Prima facie
Preliminary
Final Determination
- Receives the application/ petition on sensitive tariffied agricultural products market as SSG
Issuance of departmental order
-5 days from the receipt of the petition, issues a DO for the imposition of SSG duty
Measures RA 8752
Provisional Measures
- 4 Months extendible to 6 months
Definitive Measures
- Shall not exceed 5 Years from the date of imposition
Measures RA 8751
Provisional Measure
- 4 Months
Definitive Measure
- 5 years from the date of imposition
Measures RA 8800
GENERAL
Provisional Measure
- Shall not exceed 200 calendar days
Definitive Measure
- 4 years including the period in which the provisional measure is imposed, may be extended to a maximum of 8 years or 10 years for developing countries
Measures RA 8800
SPECIAL
Provisional Measure
Definitive Measure
- Shall take effect only until the end of the year in which the measure is imposed
3 legislations as aligned with the WTO Agreements:
•Anti-dumping Measures
•Countervailing Measures
•Safeguard Measures