QuestionsQuestions (EXECUTIVE ORDER NO. 69)
It is the State policy to protect Filipino enterprises against unfair foreign competition and trade practices, and to strengthen substantive and procedural remedies available to Filipino enterprises so they are responsive to developments in world trade.
When the Secretary receives an anti-dumping petition from the domestic industry or has reason to believe (from invoices, documents, or other newspaper/magazine information, including translations provided by a reputable language translator by government agencies or interested parties) that a specific kind/class of foreign article is imported into, or sold or likely to be sold in the Philippines at a price less than its normal value, and that such importation/sale might injure or retard the establishment of, or is likely to injure, a domestic industry producing like articles.
Within twenty (20) days from receipt of the petition or information, the Secretary must determine a prima facie case of dumping.
Within five (5) days from receipt, the Secretary must notify the protestee-importer and require submission within ten (10) days from such notice of evidence from the producer, duly authenticated by the Philippine consular or trade office, to support the normal value.
The Secretary shall base his decision on the available pertinent data.
The petitioner may petition that release be withheld pending determination. If the Secretary determines that on the face of the petition and documents there is imminent danger of injury to a particular industry due to alleged dumping, the Secretary directs the Commissioner of Customs to hold release upon filing of a bond equal to the alleged margin of dumping.
The bond answers for damages the importer may suffer from holding release if the Secretary later finds no prima facie case. Petitioner’s liability for damages shall not exceed the amount of the bond.
The Secretary may exclude related parties from the domestic industry. A producer and exporter/importer are related if one directly or indirectly controls the other, or if both producers/exporters/importers control a third party, or both are controlled such that there is reason to believe the relationship causes the producer to act differently than an unrelated producer.
To: (1) verify whether the article is imported/sold (or likely to be sold) at a price less than its normal value; (2) ascertain the difference between export price and normal value; and (3) determine whether the domestic industry suffers injury, is threatened with injury, or will suffer material retardation of establishment.
Normal value is the comparable price in the ordinary course of trade for like articles when destined for domestic consumption in the exporting country (country of production/manufacture). If it cannot be determined, normal value may be based on the higher of: proxy country normal values at the same stage of development, cost of production in the country of production, or estimated landed cost based on C&F including duties/surcharges/taxes.
It must check whether wholesale prices are reasonable considering cost of raw materials, labor, overhead, fair return, and overall efficiency; and/or whether further dumped imports are clearly foreseen and imminent considering factors such as: rate of increase in import volume (with the at-least 3% threshold), reasonable likelihood of increased importations, freely disposable or increased capacity of the exporter, and import prices having significant depressing/suppressing effect on domestic prices.
Retardation is considered when there is evidence of the forthcoming commercial operation of the industry that will produce like articles.
The law provides considerations such as: a 5% decline in sales volume or a 2% decline in sales prices (compared to average monthly sales for the immediately preceding three months); a 5% decline in production volume; and actual and potential negative effects on employment and inventories.
The Commission must terminate its investigation within ninety (90) days from receipt of the advice from the Secretary, and must submit its findings to the Special Committee within sixty (60) days from termination.
If the provisionally estimated margin of dumping is less than 2% of export price, or the volume of dumped imports is negligible (negligible defined as less than 3% of average monthly imports from a particular country, unless multiple countries each under 3% collectively exceed 7%).
The Special Committee decides whether the article is being imported in violation of the Act. If affirmative, it directs the Commissioner to levy, collect, and pay the dumping duty. If it fails to decide within the period, the Commission’s recommendation is deemed approved and becomes final and executory.
The dumping duty equals the difference between the actual export price and the normal value as determined in the dumping decision. The investigation covers all importations of like articles within 150 days immediately preceding the filing of the protest; for subsequent importations from the specific country, the dumping duty is based on the difference between actual export price and the normal value existing at the time of importation.