《E.C.ANTI-DUMPING LAW AND PRACTICE》

CHAPTER 1： GENERAL INTRODUCTION1

Introduction1

1.1The international framework3

1.2 The European Communities5

1.3 Outline of this book6

PART 1： PROCEDURE13

CHAPTER 2： INVESTIGATORY PROCEDURES13

Introduction13

2.1The administering authorities13

2.1.1The Commission13

Directorate-General I14

The Legal Service14

Directorate-General Ⅲ15

Directorate-General Ⅳ15

Directorate-General ⅩⅩⅠ15

2.1.2 The Advisory Committee15

2.1.3 The Council of Ministers16

2.1.4 The European Parliament18

2.1.5 Schematic overview of the decision-making structure in anti-dumping investigations18

2.1.6 Time limits20

2.2Complaint and initiation21

2.2.1 Standing21

2.2.2 Confidentiality of the complaint24

2.2.3 Non-confidential version of the complaint25

2.2.4 Selectivity of the complaint25

2.2.5 Withdrawal of the complaint26

2.2.6 Rejection of the complaint27

2.2.7 Initiation28

2.2.8 Self-initiation29

2.2.9 Proceeding vs.investigation30

2.3Investigation techniques30

2.3.1 Interested parties30

2.3.2Questionnaires31

Non-confidential version of the questionnaire response32

Deadline for the questionnaire response32

Related parties33

2.3.3Investigation periods34

Developments after the investigation period36

2.3.4Verifications38

Verification reports39

2.3.5 Best information available ［BIA］40

2.3.6Procedural safeguards41

Confidentiality of information42

Access to the file and possibility to comment44

Hearings45

Confrontation meetings46

Explanation of essential facts and considerations； pre- disclosure， provisional disclosure and final disclosure46

2.3.7 Sampling of producers47

CHAPTER 3： PROTECTIVE ACTION/TERMINATION67

Introduction67

3.1Undertakings67

3.1.1 General67

3.1.2 Refusal to accept undertakings69

3.1.3 Main contents of price undertakings70

3.1.4 Quantitative restrictions71

3.1.5 Other forms of export restraints72

3.1.6 Newcomers73

3.1.7 Violation of or withdrawal from undertakings74

3.2Anti-dumping duties76

3.2.1 General76

3.2.2 Scope； product definition； product exclusion77

3.2.3 Country of origin， production or export？/transshipments79

3.2.4 Lesser duty rule； injury margins82

3.2.5 Non-discriminatory application of anti-dumping duties83

3.2.6 Cumulation anti-dumping and countervailing duties84

3.2.7 Cumulation anti-dumping duties and quantitative restrictions86

3.2.8 Form of the duty87

3.2.9Residual duty89

Non-co-operating producers91

Newcomers91

Trading houses91

3.2.10 Collection of anti-dumping duties93

3.2.11 Inward processing93

3.2.12 Correction clerical errors/amendments93

3.2.13 Product exclusion after publication94

3.2.14 Provisional anti-dumping duties96

3.2.15 Definitive anti-dumping duties97

3.2.16 Definitive collection of provisional duties97

3.2.17 Retro-active application of anti-dumping duties99

3.3 Termination without protective measures100

CHAPTER 4： ADMINISTRATIVE REVIEW/REFUNDS/SUSPENSION123

4.1Review possibilities123

4.1.1Interim review124

Procedure124

Commission practice125

Scope of review126

4.1.2 Newcomer review127

4.1.3Expiry review129

Procedure129

Commission practice130

4.2Refunds131

4.2.1 Procedure132

4.2.2 Commission practice133

4.3 Suspension of anti-dumping measures138

CHAPTER 5： JUDICIAL REVIEW149

Introduction149

5.1Article 173（2） E.C.Treary149

5.1.1 Decision addressed to the applicant150

5.1.2Decision which although in the form of a Regulation is of direct and individual concern to the Applicant152

Decision by its very nature rather than a Regulation152

Direct concern155

Individual concern156

5.2Article 177 E.C.Treaty156

5.3 Article 175（3） E.C.Treaty157

5.4 Article 178 jo.215（2） E.C.Treaty157

5.5 Article 185 E.C.Treaty158

5.6 The scope of review159

5.7 The Court of First Instance160

5.8 Conclusions160

PART 2： SUBSTANTIVE REQUIREMENTS169

CHAPTER 6： THE DUMPING DETERMINATION169

Introduction169

6.1Export Price170

6.1.1 Middlemen/trading houses171

6.1.2Construction of the export price172

When will the export price be constructed？172

Which costs will be deducted？174

Which profit will be deducted？175

6.2Normal value177

6.2.1Home market sales177

Five percent rule177

Price paid or payable178

Ordinary course of trade178

Related parties179

Selective normal value； exclusion of certain domestic sales channels183

Compensatory arrangements185

Like product185

Exporting country or country of origin185

Normal value for middlemen/trading houses185

6.2.2No， insufficient or unreliable sales in the home market186

Third country exports186

Constructed value187

Cost of manufacture189

Selling， general administrative expenses ［SGA］192

Profit193

6.2.3Sales below cost of production197

Conditions197

Calculation of normal value198

6.2.4Imports from non-market economy countries199

Definition non-market economy country199

Calculation normal value200

The choice of the surrogate country200

Domestic prices， third country exports or constructed value？204

Overview of surrogate countries used205

Imposition of anti-dumping duties in the case of non-market economy countries； one country/one duty rule205

6.2.5Country of origin， production or export？/transshipments208

Applicable WTO/GATT and E.C.law208

Commission practice210

6.3Adjustments （netting back）211

6.3.1 Physical characteristics213

6.3.2 Import charges and indirect taxes215

6.3.3 Discounts， rebates and quantities216

6.3.4Level of trade/symmetry219

Selective normal value225

Original equipment manufacturer ［OEM］ sales225

Identification of OEM sales225

OEM normal value227

OEM export price227

6.3.5 Transport， insurance， handling， loading and ancillary costs228

6.3.6 Packing228

6.3.7 Credit229

6.3.8 After-sales costs230

6.3.9 Commissions231

6.4The comparison231

6.4.1 Currency conversions233

6.4.2 Negative dumping234

6.4.3 Sale and date of sale236

6.5The dumping margin237

6.5.1 Examples of dumping margin calculations237

6.6 Sampling of types of products or transactions240

CHAPTER 7： THE INJURY DETERMINATION281

Introduction281

7.1The like product282

7.1.1 The “like product” determination282

7.1.2 Absence of ‘like product’ data288

7.2 The domestic industry289

7.2.1The standard situation289

Standing289

Integrated producers291

Production in the E.C.292

7.2.2 Regional industries296

7.2.3Conflicts of interest： related parties sensu lato297

Community producer/importer298

Related parties sensu stricto： producer/exporter300

7.3Injury301

7.3.1Cumulation301

Decumulation302

7.3.2Material injury sensu stricto308

Volume of dumped imports309

Prices of dumped imports310

Impact of dumped imports on the Community industry311

7.3.3 Threat of material injury313

7.3.4 Material retardation314

7.4Causation314

7.4.1 General314

7.4.2 Margins analysis317

7.4.3 Technical dumping318

7.4.4.Competition arguments319

CHAPTER 8： INJURY MARGINS343

Introduction343

8.1Outline344

8.2 The importance of injury margins344

8.3The Conventional techniques of calculating injury margins345

8.3.1 General assessments345

8.3.2 Price undercutting： price comparison345

8.3.3Underselling： target prices347

Which cost of production？349

Which profit？349

8.3.4Global， individual or semi-individual injury margins？351

Individual injury margins352

Global injury margins352

Semi-individual injury margins353

8.4Two special cases353

8.4.1 Compact disc players354

8.4.2 Audio tapes in cassettes355

8.5 Conclusions and recommendations358

CHAPTER 9： COMMUNITY INTEREST369

PART 3： DIVERSION AND ANTI-DIVERSION RULES379

CHAPTER 10： ANTI-CIRCUMVENTION MEASURES379

Introduction379

10.1The Article 13 anti-circumvention provisions379

10.1.1.Substantive requirements379

The general rule of Article 13 （1）379

Requirement 1： change in the pattern of trade380

Requirement 2： insufficient due cause or economic justification380

Burden of proof381

What is sufficient due cause of economic justification381

Requirement 3： undermining the remedial effects of the duty382

Requirement 4： evidence of dumping382

The specific rule of Article 13（2） for assembly operations383

Value-of-parts test383

Value-added test384

Are Article 13（1） and 13（2） mutually exclusive？385

10.1.2Procedure385

10.1.3 WTO-compatability of Article 13387

10.2Origin investigations389

10.2.1Procedure390

The official procedure390

The informal procedure392

Ruling requests/BOI393

Judicial review393

10.2.2 Substantive concepts394

10.2.3 Problematic product specic origin Regulations of the E.C.395

10.2.4Value-added calculation methods396

Older cases397

Roll-up test397

Tracing test397

Parts manufactured in-house398

Examples398

Recent cases： compact disc players and colour televisions399

Compact disc players399

Colour televisions400

Critical comments400

Transfer pricing400

Currency conversions； exchange rates401

Origin-conferring assembly： the Brother judgment402

10.2.5 The interpretation of the origin rules by the European Court of Justice404

10.2.6 The WTO Agreement on rules of origin408

10.3 Input dumping409

10.4 Slightly altered merchandise410

CHAPTER 11： ABSORPTION AND ANTI-ABSORPTION DUTIES421

11.1Procedure421

11.2 Commission practice422

CHAPTER 12： REGISTRATION PROCEDURE425

ANNEXES429

Annex 1：Basic Regulation429

Annex 2： WTO Anti-Dumping Agreement467

Annex 3： Overview of sunsetted anti-dumping proceedings from July 1， 1985 to December 31， 1995495

Annex 4： Commission decisions on refund applications499

Annex 5： Overview of surrogate countries used in non-market economy proceedings from January 1， 1980 to December 31， 1995503

Annex 6： Comparison dumping and injury margins in 34 Japanese proceedings507

Annex 7： Comparison dumping and injury margins in 53 Chinese proceedings515

Annex 8： The target profit margin in 34 Japanese proceedings521

Annex 9： The target profit margin in 53 Chinese proceedings523

Annex 10： List of administrative proceedings527

Annex 11： List of Court cases657

Bibliography665

Index679