Anti Dumping Glossary
This glossary is an informal guide to some of the terminology used in the area of anti-dumping. These are not legal definitions as such but, rather, an aide to understanding some of the anti-dumping jargon. The glossary is a work in progress and will be developed as antidumpingpublishing.com develops. Currently, it relies heavily on definitions provided in the WTO anti-dumping agreement.
ADA – WTO anti-dumping agreement (Agreement on implementation of Article VI of the GATT 1994)
Administrative Protective Order – An administrative protective order (APO) is the legal mechanism in the US that controls the limited disclosure of business proprietary information to representatives of interested parties.
Affiliated company– See related company.
Agreement on implementation of Article VI of the General Agreement on Tariffs and Trade 1994 – The provisions govern the application of Article VI of GATT 1994 in so far as action is taken under anti dumping legislation or regulations.
Allowances – Allowances or adjustments are made for differences affect price comparability i.e. the comparison between normal value and export prices. Factors that can be taken into account include differences in conditions and terms of sale, taxation, levels of trade, quantities, and physical characteristics.
Analogue Country – A market economy third country used by the EU to determine normal value for cases involving non-market economies. Compare with “surrogate country” as used by the US.
Application – An application is the document submitted by a domestic industry containing evidence of (a) dumping, (b) injury and (c) a causal link between the dumped imports and the alleged injury. Also called petition or complaint.
Article VI of GATT 1994 – The original anti-dumping provision of the GATT 1947, now incorporated into WTO rules through the GATT 1994
By or on behalf of the domestic industry – A situation where an application is supported by those domestic producers whose collective output constitutes more than 50 per cent of the total production of the like product produced by that portion of the domestic industry expressing either support for or opposition to the application. However, no investigation shall be initiated when domestic producers expressly supporting the application account for less than 25 per cent of total production of the like product produced by the domestic industry.
CITT – Canada International Trade Tribunal. The Tribunal, independent from the CBSA, assumes the responsibility for the question of injury to the Canadian industry.
Causal link – It must be demonstrated that the dumped imports are, through the effects of dumping causing injury within the meaning of this Agreement
Complaint – See application.
Committee on Anti-Dumping Practices – Composed of representatives from each of the WTO Members. The Committee shall meets not less than twice a year and otherwise as envisaged by relevant provisions of this Agreement at the request of any Member.
Constructed export price – If prices are considered unreliable because they are made to a related importer, a constructed export price can be used in the calculation. This is made on the basis of the first independent sale with allowances for costs, including duties and taxes, incurred between importation and resale, and for profits accruing.
CBSA – Canada Border Services Agency. The CBSA implements the Special Import Measures Act (SIMA) inlcuding accepting complaints and determining whether injury is occurring.
De minimis dumping – The margin of dumping shall be considered to be de minimis if this margin is less than 2 per cent, expressed as a percentage of the export price.
DG Trade – Directorate General for Trade of the Commission of the European Communities.
Domestic industry – Domestic producers as a whole of the like products or to those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products. Certain exceptions exist (e.g. producers related to the exporters, producers importing the product under investigation and regional injury cases i.e. covering only one area of country).
Dumped – A product is to be considered as being dumped, i.e. introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country.
Expiry review – Any definitive anti dumping duty shall be terminated on a date not later than five years from its imposition (or from the date of the most recent review under paragraph 2 if that review has covered both dumping and injury, or under this paragraph), unless the authorities determine, in a review initiated before that date on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time prior to that date, that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury. Also called sunset review.
Facts available – If information is not supplied within a reasonable time, investigating authorities are free to make determinations on the basis of the facts available, including those contained in the application for the initiation of the investigation by the domestic industry.
Initiation – The procedural action by which a WTO Member formally commences an anti-dumping investigation
Injury – The WTO AD agreements states that the term injury should be taken to mean material injury to a domestic industry, threat of material injury to a domestic industry or material retardation of the establishment of such an industry. In determining whether there is injury, the following factors must be examined: (a) the volume of the dumped imports and the effect of the dumped imports on prices in the domestic market for like products, and (b) the consequent impact of these imports on domestic producers of such products.
Interested parties – Interested parties include: (i) an exporter or foreign producer or the importer of a product subject to investigation, or a trade or business association a majority of the members of which are producers, exporters or importers of such product; (ii) the government of the exporting Member; and (iii) a producer of the like product in the importing Member or a trade and business association a majority of the members of which produce the like product in the territory of the importing Member.
Interim review – The authorities shall review the need for the continued imposition of the duty, where warranted, on their own initiative or, provided that a reasonable period of time has elapsed since the imposition of the definitive anti dumping duty, upon request by any interested party which submits positive information substantiating the need for a review.
Lesser duty rule – The WTO AD agreement states that is desirable that the imposition be permissive in the territory of all Members, and that the duty be less than the margin if such lesser duty would be adequate to remove the injury to the domestic industry. Some countries apply a compulsory lesser duty rule (e.g. the EU and India), while others do not (e.g. US).
Like product – A product that is alike in all respects to the product 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
Negligible imports – The volume of dumped imports shall normally be regarded as negligible if the volume of dumped imports from a particular country is found to account for less than 3 per cent of imports of the like product in the importing Member, unless countries which individually account for less than 3 per cent of the imports of the like product in the importing Member collectively account for more than 7 per cent of imports of the like product in the importing Member.
Newcomer review – If a product is subject to anti dumping duties in an importing Member, the authorities shall promptly carry out a review for the purpose of determining individual margins of dumping for any exporters or producers in the exporting country in question who have not exported the product to the importing Member during the period of investigation, provided that these exporters or producers can show that they are not related to any of the exporters or producers in the exporting country who are subject to the anti dumping duties on the product.
Normal value – Representation of the normal price against which the export price is compared to determine if dumping is occurring. Normally based on prices in the domestic market but can also be based on constructed normal value (cost of production plus SGA plus profit) or export prices to third countries. Special rules can be applied with regard to identifying normal value for non-market economies.
On-the-spot investigation – Investigation at the premises of an interested party that has completed a questionnaire to verify information provided or to obtain further details.
Petition – See application.
Preliminary anti-dumping measures – See “provisional anti-dumping measures”.
Price undertaking – voluntary undertakings from any exporter to revise its prices or to cease exports to the area in question at dumped prices so that the authorities are satisfied that the injurious effect of the dumping is eliminate
Prospective duty system – Duty system where duty levels are calculated on the basis of historical data and applied to future transactions regards of actual prices (must be accompanied by the possibility to claim refunds if dumping is not occurring).
Provisional anti-dumping measures – Provisional measures can be adopted if: (i) an investigation has been initiated (ii) a preliminary affirmative determination has been made of dumping and consequent injury to a domestic industry; and (iii) the authorities concerned judge such measures necessary to prevent injury being caused during the investigation. Provisional measures may take the form of a provisional duty or, preferably, a security by cash deposit or bond equal to the amount of the anti dumping duty provisionally estimated, being not greater than the provisionally estimated margin of dumping. Also called preliminary measures.
Related company – producers shall be deemed to be related to exporters or importers only if (a) one of them directly or indirectly controls the other; or (b) both of them are directly or indirectly controlled by a third person; or (c) together they directly or indirectly control a third person, provided that there are grounds for believing or suspecting that the effect of the relationship is such as to cause the producer concerned to behave differently from non-related producers. For the purpose of this paragraph, one shall be deemed to control another when the former is legally or operationally in a position to exercise restraint or direction over the latter. Also called affiliated company.
Refunds – When the amount of the anti dumping duty is assessed on a prospective basis, provision shall be made for a prompt refund, upon request, of any duty paid in excess of the margin of dumping.
Retroactivity – Where a final determination of injury is made where the effect of the dumped imports would, in the absence of the provisional measures, have led to a determination of injury, anti dumping duties may be levied retroactively for the period for which provisional measures, if any, have been applied. Further, a definitive anti dumping duty may be levied on products which were entered for consumption not more than 90 days prior to the date of application of provisional measures, when the authorities determine for the dumped product in question that:(i) there is a history of dumping which caused injury or that the importer was, or should have been, aware that the exporter practises dumping and that such dumping would cause injury, and (ii) the injury is caused by massive dumped imports of a product in a relatively short time which in light of the timing and the volume of the dumped imports and other circumstances (such as a rapid build up of inventories of the imported product) is likely to seriously undermine the remedial effect of the definitive anti dumping duty to be applied, provided that the importers concerned have been given an opportunity to comment.
Retrospective duty system – Duty system where duties are calculated on a retrospective basis so that dumping margins are based on actual export prices. Determination of the final liability for payment of anti dumping duties takes place as soon as possible, normally within 12 months, and in no case more than 18 months, after the date on which a request for a final assessment of the amount of the anti dumping duty has been made
Sunset review – See “expiry review”.
Surrogate country – For non-market economy cases, the US values factors of production in a surrogate country. The surrogate is a market economy country that is at a level of economic development comparable to that of the nonmarket economy country and is a significant producer of the subject merchandise or comparable merchandise nonmarket economy country. Compare with “analogue country” as used by the EU.
TDI – Trade Defence Instruments.
Threat of material injury – Threat of injury can exist where a change in circumstances which would create a situation in which the dumping would cause injury must be clearly foreseen and imminent
Trade defence instruments – EU terminology for instruments to defend against unfair trade (e.g. anti-dumping, anti-subsidy etc. See “trade remedies” (used in the US).
Trade remedies – US terminology for instruments providing remedy against unfair trade (e.g. anti-dumping, anti-subsidy etc.). See “trade defence instruments” (used in the EU).
USDOC – US Department of Commerce.
USITC – US International Trade Commission.
Verification – See “on the spot investigation”.
WTO anti-dumping agreement – See “Agreement on implementation of Article VI of the GATT 1994”.