Trade Remedy Measures – Anti-Dumping, Countervailing & Safeguards

A comprehensive set of vocabulary flashcards covering key terms, agencies, procedures and concepts in Philippine trade-remedy law: anti-dumping, countervailing and safeguard measures.

Trade Remedy Measures

Government tools (anti-dumping, countervailing and safeguard measures) used to shield domestic industry from injurious import practices.

Anti-Dumping Measure

A trade remedy that protects domestic industry against unfair trade caused by dumping.

Dumping

Selling a product in an export market at a price lower than its normal value in the seller’s home market, amounting to international price discrimination.

Anti-Dumping Duty

A special duty imposed on dumped imports to neutralize injury to domestic producers.

Dumped Import / Product

An item introduced at an export price below its normal value that causes material injury to a Philippine industry.

Anti-Dumping Act of 1999 (RA 8752)

Philippine law (CMTA §711) implementing GATT Art. VI and WTO rules to counteract dumping; effective 4 Sep 1999.

Bureau of Import Services (DTI-BIS)

DTI office that accepts petitions, makes prima facie and preliminary determinations in trade-remedy cases for industrial goods.

Tariff Commission (TC)

Agency that conducts formal investigations and issues final determinations in anti-dumping, countervailing and safeguard cases.

Bureau of Customs (BOC)

Collects anti-dumping, countervailing and safeguard duties once ordered by the competent authority.

Provisional Anti-Dumping Measure

Temporary duty or bond equal to the estimated dumping margin; applied after a preliminary affirmative finding for up to 4 months (extendable to 6).

Definitive Anti-Dumping Duty

Final duty, additional to normal tariffs, imposed after an affirmative final determination; maximum duration five years.

Country of Export

The state from which the allegedly dumped product is shipped to the Philippines.

Country of Origin

State where the product was wholly obtained or last substantially transformed.

Like Product (Anti-Dumping)

Domestic product identical or closely resembling the dumped product.

Dumping Margin / Price Difference

Amount by which the normal value exceeds the export price; margin under 2 % renders a case terminable.

Material Injury

Significant harm, threatened harm or retardation of establishment suffered by domestic industry due to unfair imports.

Causal Link

Demonstration that material injury is directly caused by dumped or subsidized imports.

Price Depression

Domestic producers lower prices to compete with dumped or subsidized imports.

Price Suppression

Dumped or subsidized imports prevent domestic price increases needed to cover costs.

Price Undercutting

Imported product is consistently sold below the domestic price of the like product.

Normal Value

Comparable price of the like product in the exporter’s home market, in ordinary course of trade.

Arm’s Length Transaction

Sale where price is not influenced by relationship between buyer and seller.

Export Price

Ex-factory or FOB price of the allegedly dumped goods at point of export.

Ex-Factory Price (EXW)

Price of goods at the factory gate, before transport, insurance or export charges.

F.O.B. Price

Price including cost of delivering goods to port and loading on vessel, excluding overseas shipping.

Price Undertaking (Anti-Dumping)

Exporter’s voluntary promise to raise price or stop dumping; valid up to five years.

Lesser Duty Rule

Authority may impose an anti-dumping duty below the dumping margin if sufficient to remove injury.

Subsidy

Specific financial contribution or price support by a foreign government that confers a benefit on an exporter.

Specific Subsidy

Assistance limited to certain enterprises, industries or regions.

Actionable Subsidy ("Yellow")

Subsidy subject to countervailing action, e.g., grants, loans, price support schemes.

Non-actionable Subsidy ("Green")

Subsidy protected from countervailing action due to minimal trade distortion, e.g., limited R&D assistance.

Prohibited Subsidy ("Red")

Export-contingent subsidies or those tied to use of domestic over imported goods; challengeable at WTO.

Subsidized Import / Product

Item benefiting from specific foreign government support and injuring Philippine industry.

Republic Act 8751

Philippine Countervailing Duty law (took effect 31 Aug 1999) protecting industry from subsidized imports.

Countervailing Duty

Definitive duty imposed to offset the amount of subsidy on imported goods.

Provisional Countervailing Measure

Cash deposit or bond equal to provisionally calculated subsidy; maximum 4 months.

Voluntary Undertaking (Subsidy Cases)

Exporter or foreign government commits to remove or limit subsidy or raise export price, avoiding duties; valid up to five years.

Prima Facie Determination

Initial agency check of petition sufficiency to warrant investigation (5 days anti-dumping; 10 days countervailing).

Preliminary Determination

Agency’s decision (within 30 days AD / 20 days CVD) on imposing provisional measures after questionnaire review.

Final Determination

Tariff Commission’s conclusive finding within 120 days leading to definitive duty or termination.

Safeguard Measure

Trade remedy granting temporary relief to domestic industry facing injurious surge in fairly-traded imports.

General Safeguard Measure

Applied to any product whose increased imports cause or threaten serious injury to domestic industry.

Special Safeguard Measure

Additional duty on sensitive agricultural goods (marked "SSG") when import volume or price triggers are breached.

Safeguard Measures Act (RA 8800)

Philippine law (effective 9 Aug 2000) providing rules on general and special safeguard measures.

Increased Imports

Recent, sharp, significant rise in import volume, absolute or relative to domestic production.

Serious Injury

Significant impairment of domestic industry as shown by factors like market share, sales, production, profits, employment.

Like Product (Safeguard)

Domestic product identical to, or closely resembling, the imported article in question.

Directly Competitive Product

Domestically produced substitute that competes with the imported product.

Trigger Level (Volume)

Import quantity threshold whose breach activates a special safeguard duty.

Trigger Price

Reference price; when import price falls below it, a special safeguard duty may be imposed.

Adjustment Plan

Industry’s quantified roadmap to restructure and compete during safeguard protection period.

Duration of Provisional Safeguard

May not exceed 200 days from imposition.

Duration of Definitive Safeguard

Up to 4 years initially (including provisional phase); extendable to 8 years (10 for developing countries).

Duration of Special Safeguard

Applicable only until the end of the calendar year in which it is imposed.