1 IN: Initiations
PM: Provisional Measures
DD: Definitive Duties
PU: Price Undertakings in Force
MF: Measures in Force
Initiations
"Article 5 of the Agreement establishes the requirements for the
initiation of investigations. The Agreement specifies that
investigations should generally be initiated on the basis of written
request submitted 'by or on behalf of' a domestic industry. This
'standing' requirement includes numerical limits for determining
whether there is sufficient support by domestic producers to
conclude that the request is made by or on behalf of the domestic
industry, and thereby warrants initiation. The Agreement establishes
requirements for evidence of dumping, injury, and causality, as well
as other information regarding the product, industry, importers,
exporters, and other matters, in written applications for
anti-dumping relief, and specifies that, in special circumstances
when authorities initiate without a written application from a
domestic industry, they shall proceed only if they have sufficient
evidence of dumping, injury, and causality. In order to ensure that
investigations without merit are not continued, potentially
disrupting legitimate trade, Article 5.8 provides for immediate
termination of investigations in the event the volume of imports is
negligible or the margin of dumping is de minimis, and
establishes numeric thresholds for these determinations. In order to
minimize the trade-disruptive effect of investigations, Article 5.10
specifies that investigations should be completed within one year,
and in no case more than 18 months, after initiation." (WTO
Website. Explanation of the Antidumping Agreement. Last visited
July 2003)
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Provisional Measures
"Article 7 of the Agreement provides rules relating to the
imposition of provisional measures. These include the requirement
that authorities make a preliminary affirmative determination of
dumping, injury, and causality before applying provisional measures,
and the requirement that no provisional measures may be applied
sooner than 60 days after initiation of an investigation.
Provisional measures may take the form of a provisional duty or,
preferably, a security by cash deposit or bond equal to the amount
of the preliminarily determined margin of dumping. The Agreement
also contains time limits for the imposition of provisional measures
- generally four months, with a possible extension to six months at
the request of exporters." (WTO
Website. Explanation of the Antidumping Agreement. Last visited
July 2003)
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Price Undertakings
" Article 8 of the Agreement contains rules on the offering and acceptance of price undertakings,
in lieu of the imposition of anti-dumping duties. It establishes the
principle that undertakings between any exporter and the importing
Member, to revise prices, or cease exports at dumped prices, may be
entered into to settle an investigation, but only after a
preliminary affirmative determination of dumping, injury and
causality has been made. It also establishes that undertakings are
voluntary on the part of both exporters and investigating
authorities. In addition, an exporter may request that the
investigation be continued after an undertaking has been accepted,
and if a final determination of no dumping, no injury, or no
causality results, the undertaking shall automatically lapse." (WTO
Website. Explanation of the Antidumping Agreement. Last visited
July 2003)
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Definitive Duties & Measures in Force
"Article 9 establishes the general principle that imposition of
anti-dumping duties is optional, even if all the requirements for
imposition have been met, and establishes the desirability of
application a “lesser duty” rule. Under a lesser duty rule,
authorities impose duties at a level lower than the margin of
dumping but adequate to remove injury. Article 9.3 establishes that
anti-dumping duties may not exceed the dumping margin calculated
during the investigation. In order to ensure that anti-dumping
duties in excess of the margin of dumping are not collected, Article
9.3 requires procedures for determination of the actual amount of
duty owed, or refund of excess duties paid, depending on the duty
assessment system of a Member, normally within 12 months of a
request, and in no case more than 18 months. Article 9.4 establishes
rules for calculating the amount of duties to be imposed on
exporters not individually examined during the investigation.
Article 9.5 provides for expedited reviews to calculate individual
margins of dumping for exporters or producers newly entering the
market of the importing Member." (WTO
Website. Explanation of the Antidumping Agreement. Last visited July
2003)
"Article 10 establishes the general principle that
both provisional and final anti-dumping duties may be applied only as of
the date on which the determinations of dumping, injury, and causality
have been made. However, recognizing that injury may have occurred during
the period of investigation, or that exporters may have taken actions to
avoid the imposition of an anti-dumping duty, Article 10 contains rules
for the retroactive imposition of dumping duties in specified
circumstances. If the imposition of anti-dumping duties is based on a
finding of material injury, as opposed to threat of material injury or
material retardation of the establishment of a domestic industry,
anti-dumping duties may be collected as of the date provisional measures
were imposed." ( WTO Website. Explanation of the Antidumping Agreement. Last visited July 2003)
"Article 11 of the Agreement establishes rules for the duration of
anti-dumping duties, and requirements for periodic review of the
continuing need, if any, for the imposition of anti-dumping duties or
price undertakings. These requirements respond to the concern raised by
the practice of some countries of leaving anti-dumping duties in place
indefinitely. The 'sunset' requirement establishes that dumping duties
shall normally terminate no later than five years after first being
applied, unless a review investigation prior to that date establishes that
expiry of the duty would be likely to lead to continuation or recurrence
of dumping and injury. This five year "sunset" provision also applies to
price undertakings. The Agreement requires authorities to review the need
for the continued imposition of a duty upon request of an interested
party." (WTO
Website. Explanation of the Antidumping Agreement. Last visited July 2003)
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