Anti-Dumping Rules and Duty Imposition

Law Summary

Imposition of Anti-Dumping Duty

Anti-dumping duties are imposed when imported goods are sold below normal value and cause or threaten material injury to domestic industry.
The Secretary of Trade and Industry (for non-agricultural products) or the Secretary of Agriculture (for agricultural products) may impose such duty after a Tariff Commission investigation.
Duty equals the margin of dumping or less if sufficient to remove injury.
Duties apply in addition to regular tariffs and taxes.
Price comparison considers the country of origin or export, especially if goods are transshipped.

Initiation of Anti-Dumping Investigation

Can be initiated by any natural or juridical person representing domestic industry via written application.
Application must include evidence of dumping, injury, and causal link.
Required information: applicant identity, production volume and value, product details, country of origin, exporters, normal value, import volume trends, price effects, and injury impact.
Philippine diplomatic officials must assist in providing information within 30 days.
Domestic producer support needed: over 50% production for initiation; less than 25% support disallows investigation.
Exceptions for multiple market divisions and Secretary-initiated investigations without application under sufficient evidence.
Secretary examines application within 5 working days and dismisses if insufficient.
Legal and technical assistance provided to petitioners.

Notification and Data Gathering

Secretary notifies Secretary of Finance who informs Commissioner of Customs.
Customs provides import data within 5 days and periodic updates.
Exporting country government is notified before investigation.

Notice to Interested Parties and Evidence Submission

Interested parties (importers, exporters, producers) are notified within 2 days post-initiation.
They must submit evidence or reply within 30 days.
Failure to respond leads to default and decision based on available information.

Preliminary Determination

Secretary has 30 working days to preliminarily determine dumping, injury, and causal link based on submissions.
An affirmative preliminary finding triggers a formal investigation by the Tariff Commission.
Provisional anti-dumping duty or cash bond imposed, not exceeding estimated dumping margin.
Provisional measures last 4 to 9 months depending on circumstances.

Termination of Investigation

Investigation may be terminated if dumping margin is less than 2% or volume/injury is negligible.
Negligible volume defined as less than 3% of imports from a country unless small countries collectively exceed 7%.

Formal Investigation by Tariff Commission

Commission begins formal investigation within 3 working days of receiving case records.
Determines dumping existence, injury, causal link, duty amount, and duty duration.
Investigations are summary and timely; evidence rules are relaxed.
Defaults lead to reliance on best information.
Commission must inform parties of essential facts before final determination.
Investigation period: 120 days.

Determination of Material Injury or Threat

Injury based on positive evidence including import volume and price effects.
Injury assessed by economic factors: output decline, market share loss, profit drops, productivity, capacity utilization, cash flow.
Other factors causing injury must be considered and excluded if unrelated to dumping.
Threat requires clear, imminent likelihood of injury based on import trends, capacity increases, price effects, and inventories.

Voluntary Price Undertaking

Exporters may offer to raise prices or cease dumping to avoid duties.
Undertaking accepted only after preliminary affirmative determination.
Approved by Secretary after Commission recommendation.
Investigation may continue if exporter desires.
Undertaking lapses if findings are negative.

Cumulation of Imports

Effects of imports from multiple countries may be collectively assessed if dumping margins are above de minimis, volumes are significant, and competition conditions warrant.

Imposition and Collection of Anti-Dumping Duty

Secretary issues Department Order within 10 days after Commission’s affirmative final determination.
Customs collects duties; cash bonds applied to duties collected.
Excess bonds refunded without interest.
Negative findings lead to bond release.

Retroactive Application of Anti-Dumping Duty

Duties may apply retroactively from cash bond imposition with final injury determination.
Retroactive duties on imports not beyond 90 days before bond date under certain conditions.
No duties retroactive prior to investigation initiation.

Computation of Anti-Dumping Duty

Normal value chosen under GATT guidelines if not determinable.
Individual dumping margin assessed for exporters; sampling used if many parties.
Non-selected exporters providing info subject to investigation.
New exporters undergo accelerated review; no duties during review.

Duration, Review, and Termination of Duties

Duties remain as long as necessary to counteract dumping injury.
Reviews conducted motu proprio or upon petition after reasonable time.
Reviews focus on need for continuation and injury likelihood.
Termination orders issued if duties no longer needed.
Maximum duration 5 years unless review finds continued need.
Reviews completed within 150 days.

Judicial Review

Aggrieved parties may file petition with Court of Tax Appeals within 30 days.
Such petitions do not suspend duty imposition or collection.

Public Notification

Required for initiation, conclusion, determinations, undertakings, and termination of duties.
Notices published in two newspapers of general circulation.

Reporting Requirements

Secretary submits list of susceptible products to Customs.
Customs submits monthly import reports including invoices, bills of lading, entries, and pre-shipment reports.
Non-compliance punished with fine or suspension.

Definitions

Key terms defined include anti-dumping duty, export price, normal value, domestic industry, dumped product, like product, and non-selected exporters/producers.

Administrative Support

Departments of Trade and Industry, Agriculture, and the Tariff Commission to create special units for anti-dumping enforcement.
Duties collected earmarked for strengthening enforcement agencies.

Penalties

Failure of government officials to act leads to dismissal and possible criminal liability.
Customs officials failing to collect duties face removal.
Dumping importers face business license revocation and officer disqualification.
Fine equal to twice the definitive duty imposed.

Financial Oversight

Commission on Audit audits funds under the Act and reports to Congress annually.
Secretary also reports annually on implementation.

Congressional Oversight Committee

Composed of Trade and Industry Committee Chairmen and Ways and Means Committee Members from Senate and House.

Rule-Making Authority

Inter-agency committee (Trade and Industry, Agriculture, Finance, Customs Commissioner, Tariff Commission Chairman) issues rules and regulations.

Repealing and Separability Clauses

Prior inconsistent laws or regulations repealed or amended.
Invalidity of any provision does not affect the rest of the Act.

Effectivity

The Act takes effect 15 days after publication in two newspapers of general circulation.