Anti-Dumping Act of 1994: Dumping Duties

Either Secretary of Finance or Secretary of Trade and Industry ("Secretary") can receive anti-dumping petitions or initiate investigation based on credible information.
Secretary has 20 days to determine a prima facie case of dumping upon receipt of a petition or information.
Protestee-importer must be notified and required to submit evidence on normal value within 10 days; absent evidence, decision based on available data.
Release of dumped products may be withheld upon petition and filing of a bond equal to alleged dumping margin.
Secretary can also hold goods release motu proprio if imminent injury to domestic industry is evident.
Importer may need to post a cash bond covering estimated dumping duty plus regular duty to release goods pending final determination.

Related parties include producers and exporters/importers with direct or indirect control relationships possibly influencing market behavior.
Such related parties may be excluded from the definition of domestic industry.

Upon Secretary's advice, the Commission investigates:
1. Whether the questioned goods are sold/imported at prices less than normal value.
2. The difference between export price and normal value.
3. Whether domestic industry is injured, threatened, or materially retarded.
Normal value is typically the comparable price for like articles in the exporter’s domestic market.
If normal value cannot be determined directly, proxy methods such as cost of production or values from a proxy country may be used.

Consideration of wholesale price reasonableness, import volume increase, likelihood of increased importations, exporter capacity, and import prices' effect on domestic prices.
Injury may include decline in sales volume/prices (>5% sales volume decline or >2% price decline), production decline, negative impacts on employment and inventories.
The scope covers products identical or substantially similar, capable of supplying at least 10% of local consumption.

Commission must notify concerned parties and require submission of memoranda within 15 days.
Investigation to be terminated within 90 days and findings submitted to the Special Committee within 60 days after.
Commission may terminate investigation prematurely if margin of dumping is under 2% or volume of dumped imports is negligible (less than 3%, or less than 7% combined from small countries).

Composed of Secretary of Finance (Chairman), Secretary of Trade and Industry, and Secretary of Agriculture or Labor depending on the product nature.
Must decide on dumping violation within 15 days after Commission report.
If dumping is affirmed, directs imposition and collection of dumping duties plus other legal duties/taxes.
Failure to decide timely results in automatic approval of the Commission's recommendation.

Dumping duty equals the difference between actual export price and normal value.
It covers imports within 150 days before filing the protest and subsequent imports under similar circumstances.
For later imports, dumping duty is based on prevailing values at importation time.

Goods may be released pending investigation upon posting cash bonds covering estimated dumping duties plus regular duties.
Post-decision, goods are released only after payment of dumping duties or re-exported at the party's option and expense.

Parties including protestants, producers, importers, and protestees have rights to consultation, access to technical information, and to be heard during investigations.
Motion for reconsideration may be filed within 30 days of Special Committee’s decision without extension.
Appeals on dumping duty amount only may be made to the Court of Tax Appeals; findings on facts are final.

Investigations must include public hearings where all parties may present evidence.

Dumping duties subject to quarterly review and adjustment based on prevailing normal values.
Philippine Finance or Trade Attachés abroad provide quarterly reports on normal values.
Dumping duties may be modified or discontinued if conditions necessitating imposition cease.

Dumping decisions valid for five years unless extension requested.
Extension must be sought at least six months before expiration and may not exceed two years.
Commission and Special Committee involved in review and recommendation for extension.

Comparable price: domestic wholesale price in exporting country at same trade level.
Cost of production: sum of material/fabrication costs, 10% administrative expenses, packing costs (minimum 1%), and profit (minimum 8%).
Domestic industry: producers constituting a significant share of domestic production; related producers may be excluded.
Export price: price paid or agreed upon before export plus certain additional costs and taxes but excludes costs to Philippines port.
Like article: identical or substantially similar article serving the same or similar purpose.

Committee membership defined with specific representation from Finance, Trade & Industry, Agriculture or Labor.
Committee responsible for deciding dumping violations and directing imposition of duties.

Secretary of Finance, Special Committee, and Commission tasked with promulgating implementing rules and regulations.

Separability clause ensures validity of the Act’s other provisions if parts are invalidated.
Repeals inconsistent laws and regulations related to dumping.
Effectivity two days after publication in Official Gazette or two national newspapers, whichever earlier.