DAY 06 - Trade Remedy Measures

Trade remedy measures

These are measures not in a form of TARIFF which protects our local industry from unfair trade practices.

Trade remedy measures

Also called as ”SPECIAL DUTIES”

ANTI–DUMPING MEASURE

This is a trade remedy measure to protect domestic industries against unfair trade practice caused by dumping.

ANTI–DUMPING MEASURE

This is Section 301 of the TCCP as amended by RA 8752 now Section 711 of the CMTA, RA 10863.

1. Like product;

2. Price difference;

3. Material injury; and

4. Causality

ELEMENTS OF DUMPING

Like Product

It is a product which is identical or alike in all respect to the product under consideration. In the absence of such product, another product which, although not alike in all respect, has characteristics closely resembling those of the product under consideration.

Domestic Industry

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.

Price Difference

Amount by which the normal value (the price prevailing in the exporting country) exceeds the export price (selling price to an importer).

NV - EP / EP

Dumping margin formula %

normal value and export price

Fair comparison under anti-dumping must be made between ____

ex-factory level

At what level and under what conditions should normal value and export price be compared when determining the margin of dumping?

for each known exporter

How is the margin of dumping determined from?

Normal Value

It is the foreign producer’s domestic selling price

Normal Value

It is the comparable price in the ordinary course of trade for the like products which destined for consumption in the exporting country.

EXPORT PRICE

• Price paid or the selling price to an importer;

• Ex-factory price at the point of sale for export; or

• Free-on-board (F.O.B.) price at the point of shipment.

ALTERNATIVE EXPORT PRICE

• Constructed or deductive price, (i.e., domestic selling price of imported articles less than cost incurred after exports, e.g., customs duty, sales tax, selling, administrative expenses and profit); or

• Reasonable price.

current or present injury

Refers to material injury to a domestic industry

future injury

threat of material injury

positive and objective

Injury test must be based on ____ evidence and _____ examination of both:

Price Undercutting

It refers to the extent at which the allegedly dumped product is consistently sold at price below the domestic selling price of the like product.

Price depression

It refers to the extent at which the domestic producer reduces its selling price in order to compete with the allegedly dumped product

Price suppression

It 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.

CAUSALITY/CAUSAL LINK

Causal relationship between the dumped imports and the injury to the domestic industry.

CAUSALITY/CAUSAL LINK

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.

COUNTERVAILING MEASURES

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.

COUNTERVAILING MEASURES

This is Section 302 of the TCCP, as amended by RA 8751. (Section 713 of the CMTA, RA 10863)

02, s. 2000

The IRR for countervailing measures is under the Joint Administrative Order No.

VI and XVI

GATT Article ___ and ___ and WTO Agreement on Subsidies and Countervailing Measures.

1. Like product;

2. Subsidy;

3. Material injury; and

4. Causality

ELEMENTS OF COUNTERVAILING

SUBSIDY

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 in respect of the product imported into the country.

COUNTERVAILABLE SUBSIDY (YELLOW)

Specific, e.i., explicitly limited to an enterprise or group of enterprises, industry sector or group of industries, or designated geographic region within the jurisdiction of the granting authority.

Actionable subsidies

are those falling under the definition of subsidy which are neither non-actionable nor prohibited subsidies.

PROHIBITED SUBSIDY (RED)

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.

By bringing the matter before the WTO Dispute Settlement Body (DSB).

Where can an importing country seek redress if it alleges this kind of subsidy?

NON-ACTIONABLE SUBSIDY (GREEN)

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 enterprise or group of enterprises or industries.

Dumping margin (Country-based / exporter specific): less than 2% of the export price.

De minimis margin in anti-dumping

1. Originating from developed country: Subsidy is less than 1%.
2. Originating from developing country: - Subsidy is equal to less than 2% (or 3% for least developed country.)

De minimis margin in countervailing

Dumped imports (country-based / specific): less than 3% of all import of like product into the importing country, unless countries which individually account for less than 3% collectively account for more than 7% of the total imports of like product.

Negligible Volume in anti-dumping

1. Originating from developed country: Subsidized volume of imports is less than 3% of the total imports of the importing country, unless developed country which individually account for less than 3% collectively account for more than 7% of the total imports.

2. Originating from developing country: Subsidized imports is less than 4% of the total imports of the importing country, unless developing country which individually account for less than 4% collectively account for more than 9% of the total imports.

Negligible Volume in countervailing

Voluntary Price Undertaking

Voluntary commitment by the exporters to increase their price or to cease exporting to the country at a dumped price OR eliminate or limit their subsidy or take other measures concerning its effect or revise its price to eliminate the material injury to the domestic industry.

after a preliminary

In voluntary price undertaking, the offer shall be made only __________ affirmative determination of dumping/subsidy and injury to the domestic industry.

Duration- 5 years unless revoked.

Duration of voluntary price-undertaking

At least 6 months before the 5-year expiry date, to determine if dumping/subsidization and injury will continue or recur.

When is a Sunset/Expiry Review initiated, and why?

The domestic industry or the Tariff Commission (TC) on its own motion.

Who may initiate a Sunset/Expiry Review?

The TC motu proprio, upon the Secretary’s direction, or upon an interested party’s petition.

Who may initiate an Interim Review?

At least 1 year after the imposition of the anti-dumping or countervailing duty.

When may an Interim Review be conducted?

New Shippers/Accelerated Review

It is to determine the individual dumping margin or subsidy amount for a new exporter.

Exporters who did not export the product during the period of investigation.

Which new exporters qualify for a New Shippers Review?

They must not be related to any foreign exporter subject to anti-dumping or countervailing duties.

What relationship restriction applies to new foreign exporters requesting a review?

With the CTA, within 30 days from receipt of the notice of final ruling.

Where and within what period must a petition for review of an anti-dumping or countervailing duty be filed?

SAFEGUARD MEASURE

Trade remedy measure to protect the domestic industry from import surge.

SAFEGUARD MEASURE

Temporary measures (tariff increase, tariff quotas or quantitative restrictions) that may be taken to allow a country, whose domestic industry is seriously injured by increased but fairly traded imports, time to adjust to foreign competition.

SAFEGUARD MEASURE

This is RA 8800 or Safeguard Measures Act signed on 19 July 2000 took effect on 09 August 2000 (Section 712 of the CMTA, RA 10863)

XIX

GATT Article ____ and WTO Agreement on Safeguards.

GENERAL SAFEGUARDS

Relieve domestic industry suffering from serious injury as a result of increased imports.

SPECIAL SAFEGUARDS

Assist farmers whose products were previously protected by QRs that have been tariffied.

GENERAL SAFEGUARDS

It covers Industrial and non-tariffied goods.

SPECIAL SAFEGUARDS

It covers Tariffed agricultural products denominated with the acronym "SSG" in the GATT Schedule of Concessions.

1. Like product;

2. Volume of imports exceed a trigger base level

3. Price falls below a trigger price level.

ELEMENTS OF SPECIAL SAFEGUARDS

Developing country:

a. Share of import to total PH imports is less than 3%

b. Those with less than 3% share collectively account for not more than 9% of the total PH imports.

De minimis of General Safeguard Measures

None

De minimis of Special Safeguard Measures

More than 1 year.

For how long must a general safeguard measure last before it requires regular revie

The Tariff Commission (TC).

Who monitors the progress and specific efforts toward positive adjustment to import competition?

DTI Secretary.

Who determines whether to extend a safeguard measure, taking into account the Commission’s monitoring report?

majority of representatives of the domestic industry, one year before the action terminates.

Who may request an extension of a safeguard measure, and when?

90 days before the expiration of the safeguard measure.

Under a Safeguard Review, when must the request for extension be made?

The petitioner

Under a Safeguard Review, who may request an extension of a safeguard measure if it remains necessary to prevent or remedy serious injury and the domestic industry is making positive adjustments to import competition?

Adjustment Plan

Action plan indicating a set of quantified goals, specific programs and timetables that a concerned industry commits to undertake in order to facilitate the industry’s positive adjustment to import competition (e.g. adoption of improved technology, rationalization of production structures

Tariff Commission

Where must the adjustment plan be submitted as part of the required submission in general safeguard action.

Tariff Commission

It will monitor the progress and specific efforts made to effect a positive adjustment to import competition.

DTI/DA
SPECIAL: DA

Who receives properly documented application of RA 8752, RA 8751, RA 8800 GENERAL SPECIAL

DTI/DA

Who determines whether a Prima Facie case exists RA 8752, RA 8751, RA 8800 GENERAL SPECIAL

Tariff Commission

Who conducts a formal investigation.

Sec. DTI/DA

SPECIAL: DA

Issues Departmental Order

BOC

Who Collects duties.

Anti-Dumping- 5 days

Countervailing- 10 days

Safeguard- 5 days

from the acceptance of properly documented application

Within how many days is PRIMA FACIE investigation

Anti-Dumping- 30 days

Countervailing- 20 days

Safeguard- 30 days

from the receipt of the answers to the questionnaire.

Within how many days is PRELIMINARY investigation

Anti-Dumping- 120 days

Countervailing- 120 days

Safeguard- 120 days / 60 days if urgent

from the advice of DTI/DA.

How many days is the FINAL DETERMINATION

Anti-Dumping- 10 days

Countervailing- 10 days

Safeguard- 15 days

SPECIAL - 5 days from the receipt of the petition, issues a DO for the imposition of SSG duty.

from the receipt of affirmative final determination from TC.

Within how many days is the ISSUANCE OF DEPARTMENTAL ORDER

4 Months extendible to 6 months.

PROVISIONAL MEASURE of anti-dumping

4 Months

PROVISIONAL MEASURE of countervailing

Shall not exceed 200 calendar days.

PROVISIONAL MEASURE of General Safeguard

Shall not exceed 5 Years from the date of imposition

DEFINITIVE MEASURE of Anti-Dumping

5 Years from the date of imposition.

DEFINITIVE MEASURE of Countervailing

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.

DEFINITIVE MEASURE of General Safeguard

Shall take effect only until the end of the year in which the measure is imposed.

PROVISIONAL AND DEFINITIVE MEASURE of Special Safeguard