EU Anti-Dumping Measures and Review Regulations


demand; The level of competition between producers in the Community; Productivity and investment in production; Quality or technical advantages of imported products; Price fluctuations of input materials and exchange rate fluctuations.

In relation to the impact of dumped imports on prices, the EC will consider whether there is a significant price reduction in the dumped imports compared to the prices of similar goods in the European Union's Community industry (i.e. whether the price reduction is large or small). Similar to the comparison of prices to calculate the margin, the calculation of the impact of the import price reduction is carried out on the basis of comparing the average prices of each product category to calculate the price reduction margin for each product category, then calculating the overall price reduction margin from the set of price reduction margins for each product category.

Cumulative

Using the ADA cumulation rule, the EC aggregates all imports from the countries under investigation and assesses their impact on the domestic industry (although the dumping margin is calculated separately). However, the EC usually does not take into account the competition between those products [23].

The EC Anti-Dumping Regulation provides that the effects of dumped imports from the country of origin will be assessed cumulatively if it is determined that:

- The dumping margin established by each country is higher than the de minimis margin;

- Imports from each exporting country are negligible, representing only 1% of the market share. However, if the market share of a single country is less than 1%, imports are still not considered negligible if they account for at least 3% of the European Community market.

- The cumulative assessment of the effects of imports is necessary in the context of competition between imported products and similar products within the Community.

In fact, the EC concludes that conditions for accumulation currently exist and will assess


injury caused to Community production on the basis of all imports.

Massive damage

Even if imports are the cause of adverse effects on Community production, the goods are assessed by examining whether the increase in volume and/or the existence of price declines occur simultaneously because of the deterioration in the financial situation of the producing industry.

When increased imports are accompanied by a deterioration in the economic situation of the complainant, the Community tends to automatically assume a causal link between the two facts. If it cannot be shown that the injury is due largely to factors other than dumped imports, the Community will conclude that dumping has caused injury.

The influence of ' other factors '

If factors other than imports are threatening the Community industry at the same time, it is necessary to examine whether these factors break the causal link between the imports and the injury. In determining whether factors other than imports are causing injury to the industry, the Commission shall examine:

- Volume and price of imported goods not dumped or subsidized;

- Narrowing demand and changes in consumption patterns;

- Limited trade practices;

- Strong competition between producers based in the European Community;

- Insufficient productivity of the Community's production;

- Weakness in advertising and after-sales service of the manufacturing industry in the Community;

- Misjudging market development;

- Poor product quality or insufficient product range of Community production;


- Exchange rate fluctuations

- Redistribution of production outside the Community.

If it is proved that the above factors are causing injury to the Community industry, the Commission will determine the influence of the factor on the injury found. It will conclude that the imports do not cause injury only if it is determined that the injury is due entirely to other factors. Where it is determined that the imports have contributed to the injury found, even if they are not the main and sole cause of the injury, the Community will generally conclude that there is a causal link between the dumping and the injury.

However, in reality, it is very difficult for exporters to prove the above economic impacts.

No connection for each exporter

As analyzed above, the EU regulation on determining the link between dumping and injury only determines the general link between the total dumping and the total injury of the Community industry, and does not calculate the link for each exporter separately. This of course causes damage to small exporters because their very small market share is not taken into account.

c) Consider community interests

Some countries in the world such as the EU, Canada, Australia, Argentina stipulate that considering community interest is a condition for applying anti-dumping measures. On the basis of putting community interest first, the EU stipulates that if the Commission determines that there is dumping and damage, they can still decide not to apply anti-dumping measures if they find that such measures are contrary to community interest.

The public interest is determined to include the interests of the producers of the like product within the Community and the interests of the consumers of the imported product. Normally a protective measure is considered to be in the public interest when the majority of Member States do not object to its application. Thus, in order not to


To be subject to anti-dumping measures, exporters must convince member countries that their goods do not affect the interests of the Community.

If in the past, the number of cases of not applying anti-dumping measures due to impacts on public interests in the EU was not much, in recent years the EC has paid more attention to public interests and the number of times it has not applied them has also increased.

The specific case of the EU's calculation of damages is set out in Annex 2.

2.1.2.4 EU anti-dumping measures and review regulations

a) Anti-dumping measures

Like other countries, the European Commission often applies suspension agreements and provisional duties, anti-dumping duties. The different EU regulations on the application of anti-dumping measures are analyzed below:

Tax rate

As in other countries, the EU stipulates that the anti-dumping duty rate must not exceed the dumping margin. However, as mentioned, in practice the Commission sometimes applies a duty rate lower than the dumping margin because the calculated injury margin is lower than the dumping margin.

One of the differences in the EU rules is that duties on imports from a country are based on the dumping margin and the injury margin (which has been calculated) for each exporter who has cooperated with the Commission throughout the investigation. Thus, if the Commission determines that duties are necessary on imports from a particular country, all exporters based in that country will be subject to anti-dumping duties on their exports or, if any exporters do not cooperate with the Commission, to a common residual duty.

Retroactive application

In general, duties are only levied on goods imported into the European Community after a decision has been taken to impose the duty in question. However, there are exceptions to this general rule and duties may be imposed in certain circumstances.


specific situation

For dumped goods , retroactive duties may be imposed if:

- Has a history of dumping (or the importer has or should have recognized dumping); and

- Sharp increase in dumped imports into the European Community before the application of protective measures.

In such cases, definitive duties on imports into the European Community may be imposed up to a maximum period of 90 days before the imposition of provisional duties (but not before the initiation of an investigation).

b) Review the application of anti-dumping measures

Like some countries, the EU also conducts mid-term and sunset reviews. Mid-term reviews in the EU will be carried out in the following cases:

(i) The European Commission or an EU Member State provided that there is sufficient evidence to demonstrate the need for a mid-term review – in which case a request for a review may be made at any time.

(ii) Any exporter, importer of the goods concerned or EU manufacturers provided that:

- The anti-dumping/anti-subsidy measure has been applied for a reasonable period of time (at least 1 year from the date of official tax determination); and

- The request must be accompanied by sufficient evidence to demonstrate the need for a review of the measure.

In this case, a request for review can only be made after the formal tax measure has been applied for at least 1 year.

The sunset review is conducted at the end of the period of application of anti-dumping measures, to determine whether the termination of the anti-dumping measures after the expiry of the period of application specified in the Final Duty Decision would lead to the continuation or recurrence of dumping causing injury. The sunset review procedure is conducted in all aspects, almost


similar to the initial investigation.

Thus, the legal contents and anti-dumping enforcement mechanisms in the EU clearly show that the EU uses anti-dumping policies that harmonize production protection and public interests, as shown in the following points:

i) Selection of investigation sample: The EU often selects the investigation sample in case of too many defendants, with such selection of sample, it will not maximize the calculation margin as in the US classification;

ii) Determining the level of contribution of the domestic industry producing similar products to the Community's production: This is one of the provisions aimed at determining more "reasonably" in the direction of protecting consumers on the basis of determining the level of contribution of the domestic industry.

iii) Determining the margin of damage: With the regulation on applying the margin of damage, the EU policy tends to protect consumers because the anti-dumping tax rate will be the lower ratio between the margin of damage and the margin of dumping.

iv) Consideration of public interest: With this provision, the EU requires mandatory assessment of the impact on public interest of applying anti-dumping measures. Although these provisions are not and cannot be precise, they also demonstrate the EU's policy of harmonizing protection and consumer interests.

Through analyzing the experience of using anti-dumping policies of the US and EU, it can be seen that these countries / groups of countries use different calculation methods to implement their policy goals . The difference is reflected in the policy implementation policy , while the US is thoroughly protective , the EU takes into account the public interest factor . In addition , in implementation , these countries still separate the agencies or departments investigating dumping and damage to ensure expertise and suitability with the management functions of each country/ group of countries .


2.2 Experience in using anti-dumping policies of some countries

is developing

2.2.1 Experience in using India's anti-dumping policy

2.2.1.1 Viewpoints and objectives of India's anti-dumping policy

India is one of the earliest countries to pay attention to anti-dumping policy. Since the early 1980s, India has shown that the goal of anti-dumping policy is to limit imports and it was first stipulated in law in 1982 when the 1975 Tariff Act was amended. When becoming a member of the WTO (1995), India amended the provisions of the Tariff Act and internalized the basic provisions of the ADA Agreement. However, unlike many countries such as the US and the EU that stipulate in detail most of the contents of anti-dumping, India tends to let the competent authority decide all issues, of course still ensuring the basic principles of the ADA Agreement. Because the determination of factors, application of calculation methods, and decision on anti-dumping measures depend heavily on the competent state management agency, the investigation results are easily subjective.

In practice, the investigating agency has different conclusions in similar cases (in determining similar products) or although the investigating agency concludes that the conditions for applying anti-dumping measures are sufficient, the competent authority still does not apply the measures. Thus, not only the investigation results but also the final decision depends largely on the subjectivity of the competent authority (which are government agencies). However, India is also one of the countries that conducts the most investigations and applies anti-dumping measures, with a flexible anti - dumping policy .

During the period from 1995 to 2011, India became the leading country in using anti-dumping policies on imported goods, surpassing both the US and the EU. During this period, India conducted 647 investigations against more than 50 countries, of which 458 resulted in the application of anti-dumping measures (rate


70%). The countries that India applies anti-dumping measures to are those with large volumes of imports into India, including countries that regularly use anti-dumping measures such as the US, EU, South Korea, etc.

Table 2.6 Exporting countries most investigated by India for anti-dumping



STT


Water

Number of investigations

Number of times CBPG measures are applied

Applicable rate


(%)

1

China

144

114

79.1

2

Korea

49

35

71.4

3

EU

48

31

64.5

4

Taiwan

47

35

74.4

5

Thailand

37

24

64.8

6

America

33

20

60.6

7

Japan

32

22

68.7

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EU Anti-Dumping Measures and Review Regulations

Source: WTO Secretariat Thus, despite the specific provisions, India appears to be a

Although India has used flexible anti-dumping policies, actual data also shows that it is a country that actively uses anti-dumping to protect domestic production. Although it does not radically increase the dumping margin and still requires investigation of the margin of damage and determination of the impact

Despite the public interest, India still achieved a higher rate of application of measures to total investigations than the world average of 64.8%43.

2.2.1.2 India's anti-dumping legal system and enforcement agencies

The anti-dumping provisions are specified in the document entitled “The Code of Customs Rules for Determining, Assessing and Applying Anti-Dumping Duties or Other Duties on Dumped Goods and Determining Injuries” (hereinafter referred to as “Code”).



43 See Chapter 1.

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