Anti-dumping and countervailing duties - calculation of dumping margin

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The result of an anti-dumping investigation is, as a rule, the establishment of an anti-dumping duty or voluntary obligations of the exporter, if they are accepted by the authorities of the importing country.

As a general rule, the amount of anti-dumping duty cannot exceed the proven level of dumping margin.

The Agreement on the Implementation of Article VI of GATT 94 (hereinafter referred to as the WTO Anti-Dumping Agreement) establishes the rules governing the calculation of dumping margins.

Typically, the WTO Anti-Dumping Agreement requires either a comparison of the weighted average normal value with the weighted average of all comparable export prices, or a comparison of the normal value and the export price of transactions (Article 2.4.2 of the Agreement).

If the structure of export prices contains certain patterns, for example, prices differ significantly depending on buyers, regions or time periods (so-called “targeted dumping”), then a different method for comparing prices may be used. In this situation, the weighted average normal cost can be compared with export prices for individual transactions. However, the investigating authority must provide an explanation as to why such differences cannot be taken into account when comparing a weighted average with a weighted average or when comparing a transaction with a transaction in the normal way.

Return or Refund

The WTO Anti-Dumping Agreement requires WTO member countries to levy anti-dumping duties on a non-discriminatory basis on imports from all sources that dump shipments and cause damage to the importing country's industry. Exceptions can be made only to exporters whose price commitments have been accepted by the authorities of the importing country.

The amount of anti-dumping duty collected cannot exceed the proven dumping margin, but can be set at a lower level.

The WTO Anti-Dumping Agreement sets out mechanisms to limit the imposition of excessive anti-dumping duties. The choice of mechanism depends on the toll collection process. In case of payment of excessive anti-dumping duties, they are subject to return to the payer.

Reflection of anti-dumping duty in accounting

Anti-dumping duty is paid separately from import duty, so value added tax is not calculated on it.

The accounting entry is prepared for imports from countries outside the EAEU Customs Union:

debit 76 “Customs”, credit 51 “Current accounts” - payment of advance payments to customs authorities;
debit 41.01 “Goods in warehouses”, credit 60.21 “Settlements with suppliers and contractors in foreign currency” - receipt of goods;
debit 41.01 “Goods in warehouses” (if duties are included in the cost of goods) or 44.01 “Sale expenses” (if accounting is included in sales expenses), credit 76 “Customs” - advance payment for payment of import duties and fees.

Individual dumping margin of exporters

The WTO Anti-Dumping Agreement requires that when anti-dumping duties are imposed, a dumping margin must be calculated for each exporter. However, in practice this is not possible in all cases. The WTO Anti-Dumping Agreement allows the investigating authority to limit the number of exporters, importers or shipments considered individually and to impose an anti-dumping duty on uninvestigated sources based on the weighted average dumping margin established for the exporters or producers actually examined.

The investigating authority is prohibited from including in the calculation of this weighted average dumping margin a dumping margin that is de minimis, nil, or based on available facts rather than a full investigation. Authorities must calculate an individual margin for any exporter or manufacturer who provides the required information during the investigation.

New exporters

The WTO Anti-Dumping Agreement contains rules for determining anti-dumping duties for manufacturers or exporters who were not the sources of imports considered during the investigation period.

In this case, the investigating authority is required to conduct an expedited review to determine the individual dumping margin specifically for such “new exporter.”

Determination of damage and causation.

Similar product

Definition of similar product

At the beginning of every anti-dumping investigation, it is important to identify the domestic “like product.” A like product is defined in Article 2.6 of the WTO Anti-Dumping Agreement as “a product which is identical, i.e. similar in all respects to a given product, or, in the absence of such a product, another product which, while not being similar in all respects, has characteristics close to those of the given product.”

Proving similarity involves first examining the imported product or products allegedly imported under conditions of dumping, and then determining which domestically produced product or products are the appropriate “similar products.”

The like product decision is important because it is the basis for determining which companies constitute the domestic industry, which in turn determines the scope of the entire investigation and determination of damages and causation.

Domestic industry

Definition

The term “domestic industry” (or “domestic industry”) in Article 4 of the WTO Anti-Dumping Agreement means “domestic producers of the like product or those of them whose aggregate production of those products constitutes a major portion of the total domestic production of those products.”

Related Domestic Manufacturers

The WTO Anti-Dumping Agreement recognizes that, under certain circumstances, it may not be appropriate to include all producers of a like product in a national economic sector.

Therefore, it is permissible to exclude domestic producers associated with exporters or importers under investigation and producers who are themselves importers of allegedly dumped products.

The Agreement provides that a manufacturer may be considered to be “associated” with an exporter or importer of an allegedly dumped product if there is a control relationship between them and that relationship results in the domestic manufacturer behaving differently from other producers.

Damage

Types of damage

The WTO Anti-Dumping Agreement states that in order to impose anti-dumping measures, the investigating authority must establish that there has been damage to the domestic industry.

The term “damage” in the Agreement means one of the following:

material damage caused to domestic industry;
threat of material damage to domestic industry;
a significant delay in the development of domestic industry.

Basic requirements for determining material damage

The WTO Anti-Dumping Agreement does not define the concept of “material”.

It is necessary, however, that the determination of damage be based on positive evidence and involve an objective examination of:

the volume of dumped imports and the impact of dumped imports on prices in the domestic market for similar goods;
the subsequent impact of dumped imports on domestic producers of similar products.

Article 3 of the WTO Anti-Dumping Agreement contains a number of specific additional factors that should be taken into account when assessing these two main elements, but does not provide detailed guidance on how these factors should be assessed or causation established.

Basic requirements for determining the threat of material damage

The WTO Anti-Dumping Agreement sets out the factors to be considered in assessing the threat of material injury.

These include the growth rate of dumped imports, the production capacity of the exporter(s), the likely consequences of dumped import prices and inventories.

However, no further explanation is provided regarding these factors and their assessment.

At the same time, the Agreement specifies that the determination of the threat of material injury must be based on facts and not merely on allegations, assumptions, or the remote possibility that dumped imports may cause material injury. The circumstances that will lead to damage from dumped imports must be clearly visible and inevitable.

Concept

In foreign trade, dumping is used to penetrate international markets, capture them and displace competitors.
Dumping is an unjustified reduction in prices for goods and services.

The WTO, whose main function is to regulate international trade, defines dumping as price discrimination - a means of unfair competition in the world market.

In foreign trade, dumping is considered to be a situation when a foreign company sells goods on the international market at a lower price than on the domestic market of the producing country.

Features of types of dumping:

price - export products are sold on the world market cheaper than on the national market;
cost - when products are sold at cost or lower.

Any type of dumping causes damage to the economy of the importing country, therefore states apply special protective anti-dumping and compensatory measures to counter dumped imports.

The Russian market is attractive to foreign suppliers, so the state has a need to protect the national market. For this purpose, protective anti-dumping measures are introduced at the legislative level - a method of non-tariff regulation: anti-dumping duty is used in relation to imported goods, the cost of which is deliberately underestimated.

International dumping has a negative impact on the economic performance of Russian producers with significant volumes of imported products and, as a consequence, on the country’s budget:

production and sales volumes of domestic products are decreasing, being replaced by imported ones;
the production of domestic products becomes unprofitable;
investment in this sector of the economy is reduced;
there is a reduction in the number of workers in this industry and a reduction in wages.

To compensate for the harm caused when the fact of dumping is confirmed, the exporting manufacturer bears an additional financial burden in the form of special anti-dumping and countervailing customs duties, which are levied in favor of the Russian budget to cover the damage to the country's economy.

Exporters are faced with a choice: is it profitable to supply products to the country at reduced prices, paying additional customs duties on them, or to set a “normal” price for them.

The normal price is the price for a similar product in the domestic market of the exporting country.

If there is no similar product in the country, the normal price is calculated taking into account its cost with a reasonable markup for transport and other costs, or the prices at which the products are supplied to other countries are used.

A price that is lower than normal is considered dumping.

The difference between the prices of goods on the domestic and foreign markets is determined by the dumping margin - this is the ratio of the normal cost of the goods in the country of the manufacturer or exporter of the goods in the normal course of trade in such goods, minus the export price of such goods to its export price. It shows the degree of damage to a manufacturer or a particular sector of the economy.

The minimum permissible dumping margin is 2%.

To combat artificially low prices for imported goods in order to capture the country's market, additional customs tariffs have been introduced - special, anti-dumping and countervailing duties:

Special is a protective measure that is applied if the quantity of foreign goods supplied to the territory of a state can cause serious damage to domestic producers of similar goods, or as a response to discriminatory actions of other states that infringe on the interests of Russia. Apply regardless of the exporting country.
Anti-dumping duties are additional duties on imported goods brought into the country at a price lower than normal. They are provided to limit the import of products in order to support domestic producers and prevent the capture of the Russian market by foreign suppliers.
Compensatory - for goods in the production or transportation of which subsidies from another state were used. Designed to neutralize the negative impact of government subsidies from another country on the Russian economy.

Anti-dumping measures are intended for:

protecting domestic producers and all sectors of the Russian economy from the adverse influence of foreign competitors;
control over the export of products;
promoting domestic products on the international market.

Elements of Analysis

Consideration of the impact of dumped imports on supply volumes

The WTO Anti-Dumping Agreement requires the investigating authority to examine whether there has been a significant increase in the volume of dumped imports, in absolute or relative terms, relative to domestic industry production or consumption.

Consideration of the price impact of dumped imports

The WTO Anti-Dumping Agreement requires the investigating authority to consider whether there was a significant price impact from the price of the dumped import compared to the price of the importing member's like product.

The investigating authority should also consider whether the dumped imports have a significant downward effect on prices or prevent price increases that would otherwise occur.

Assessing the impact of dumped imports on volume and prices

The WTO Anti-Dumping Agreement states that none of the factors specified in it or their combination can be decisive.

The Agreement does not specify how the investigating authority should assess the impact of dumped imports on volume and prices, only that the impact must be taken into account.

Thus, each investigative agency must develop its own analytical methods for assessing these factors. Since no one or any combination of these factors is decisive for making an assessment of the impact of dumped imports, the investigating authority must evaluate on a case-by-case basis which factors are relevant and which are not.

Analysis of the impact of dumped imports on domestic industry

The WTO Anti-Dumping Agreement states that when examining the impact of dumped imports on a domestic industry, authorities must evaluate all relevant economic factors affecting the industry.

The Agreement lists a number of factors that must be considered, including actual or potential decline in sales, profits, production volumes, market shares, productivity, return on investment, capacity utilization, actual or potential impact on cash flow, inventory, employee employment, the level of wages, the ability to attract capital or investment, and the size of the dumping margin.

However, this list is not exhaustive and other factors may also be considered relevant and considered when assessing the state of the domestic industry.

In addition, the WTO Anti-Dumping Agreement does not specify which of these factors is decisive for the investigation body to conclude that there is material damage to a national sector of the economy.

Proof of cause and effect

The WTO anti-dumping agreement requires a demonstration of a causal link between dumped imports and damage to domestic industry.

This demonstration must be based on an examination of all relevant evidence. However, the Agreement does not provide specific guidance on how the relevant evidence should be assessed or specify which factors should be considered.

Article 3.5 of the WTO Anti-Dumping Agreement requires, at the same time, that all known factors other than dumped imports that may cause harm be examined. Provides examples of factors (such as changes in demand patterns and changes in technology) that may be relevant, and clarifies that damage caused by such factors is not attributable to dumped imports.

Thus, the investigating authority must independently develop analytical methods to identify evidence that may be relevant in each particular case and evaluate this evidence, taking into account all factors that may cause harm to the domestic industry.

Aggregate Analysis

Aggregate analysis is concerned with accounting for dumped imports from more than one country and making an assessment of the damage to domestic industry from such dumped imports.

Obviously, the consideration of supplies from several countries leads to an increase in the volume of imports, the impact of which on the domestic industry is subject to assessment, and therefore, there is a high probability of concluding material damage to the national industry.

The practice of aggregate analysis was the subject of much debate during the Tokyo Round and during the negotiations for the adoption of the WTO Anti-Dumping Agreement.

Article 3.3 of the WTO Anti-Dumping Agreement sets out the conditions under which a cumulative assessment of the consequences of dumped imports from more than one country can be made. The authorities must determine that each country's dumping margin is not de minimis, that the volume of imports from each country is not insignificant, and that the aggregate assessment is consistent with competition between the imported product and the domestic like product.

Special protective measure

Special protective, countervailing and anti-dumping measures are applied in the form of corresponding duties, quantitative restrictions (within the framework of special protective measures) or obligations (within the framework of anti-dumping or countervailing measures).
A special protective measure is applied to goods imported into the customs territory of the Union from an exporting third country, regardless of its country of origin, with the exception of certain cases of import of goods originating from a developing or least developed country that is a user of the Union's system of tariff preferences, as well as goods originating from a member state of the Commonwealth of Independent States.

Unlike anti-dumping or countervailing measures, special protective measures are not aimed at eliminating unfair competition, but are designed to protect a national industry that is suffering losses due to a sharp increase in imports of a similar product.

That is, the introduction of a special protective measure makes it possible for domestic producers, unexpectedly faced with significant volumes of competing foreign goods, to adapt to working in conditions of foreign competition for some time.

Since a special protective measure can be applied only if the import of goods into the customs territory of the Union is carried out in such increased quantities and under such conditions that it causes serious damage to the economic sector of the Member States or creates a threat of causing such damage, objective factors must be established that can be expressed in quantitative terms and which have an impact on the economic situation of the economic sector of the Member States, these include in particular:

rate and volume of growth of imports of goods;
the share of imported goods in the total sales volume of a given, similar or directly competing product on the market of the Member States;
the price level for imported goods in comparison with the price level for similar or directly competing goods produced in the Member States;
changes in the volume of sales on the market of Member States of a similar or directly competitive product produced in Member States;
changes in the volume of production of a similar or directly competitive product, productivity, capacity utilization, profit and loss margins, as well as the level of employment in the economic sector of the Member States.

In critical circumstances, where delay in the application of a special protective measure would lead to damage to a sector of the economy of the Member States that would be difficult to remedy subsequently, the Commission, pending the completion of the main investigation, and no later than 6 months from the date of its commencement, may impose a provisional special duty for a period not exceeding 200 calendar days.

If, based on the results of the investigation, a special protective measure is not introduced, the previously paid amounts of the preliminary special duty are returned to the payer.

A special protective measure can be established in the form of:

import quota;
special quota;
special duty.

An import quota is a restriction on the import of goods into the customs territory of the Union in relation to its quantity or value.

A special quota is the establishment of a certain volume of imports of goods into the customs territory of the Union, within the framework of which the goods are supplied to the customs territory of the Union without paying a special duty, and above which - with the payment of a special duty.

In this case, the size of the import or special quota should not be lower than the average annual volume of imports of goods for the previous period, except in cases where it is necessary to establish a smaller quota to eliminate serious damage to the economic sector of the Member States or the threat of it.

A special duty is a duty that applies when a special protective measure is introduced and is levied independently of the import customs duty.

The duration of the special protective measure should not exceed 4 years. This period may be extended if, based on the results of a repeated investigation, it is established that in order to eliminate serious damage to the economic sector of the Member States or the threat of it, it is necessary to extend the period of validity of the special protective measure, and there is evidence that the relevant economic sector of the Member States is taking measures , facilitating the adaptation of this industry to changing economic conditions.

In this case, the total period of validity of the special protective measure, including the period of validity of the preliminary special duty, should not exceed 8 years.

Anti-dumping measure

The anti-dumping measure is aimed at eliminating unfair competition from goods supplied at dumped prices. In this case, a product is subject to dumped imports if the export price of this product is lower than its normal value.

In this case, the export price is the price that is paid or must be paid when importing goods into the customs territory of the Union, and the normal price is the price at which the goods are sold in the domestic market of the exporting country.

“Dumping” is international price discrimination in which goods on the foreign market are sold at prices lower than the prices for similar goods on the domestic market of the exporting country.

“Dumping” itself is not a prohibited practice and its use as a market strategy does not contradict WTO rules. However, taking into account that these tactics can harm the national industry and contribute to the exclusion of national producers from the market, an appropriate universal counteraction mechanism has been created within the framework of the GATT/WTO.

The anti-dumping measure depends on the goals and nature of dumping, which can be divided into permanent (aggressive) and one-time (passive).

Constant dumping is associated with the policy of ousting a competitor through low prices; Subsequently, the company usually raises prices again, bringing them to a value higher than the initial price of ruined competitors.

Thus, foreign companies are willing to sell their goods for export for a certain period, even at unprofitable prices, in the hope that they will be able to recoup their losses after eliminating competition from local producers, or by compensating for high sales prices of these goods in their domestic market. Large international corporations with significant financial resources can afford to incur such costs to conquer a foreign market. At the same time, local companies often simply do not have the necessary resources to resist the aggressive pricing policies of foreign manufacturers.

One-time dumping occurs due to the need to get rid of an accidental excess of goods by selling them on the foreign market at low prices.

For the national economy, constant dumping is most dangerous, since it leads to the ruin of national producers.

In practice, it is difficult to differentiate between the above types, since it is impossible to clearly identify the final intentions of the company selling at reduced prices. For this reason, when deciding to introduce an anti-dumping measure, countries primarily take into account damage to the national industry in connection with the import of a given product.

Damage to the economic sector of the Member States due to dumped imports is established based on the results of an analysis of the volume of dumped imports and the impact of such imports on the prices of similar goods in the market of the Member States and on producers of similar goods in the Member States.

When analyzing the impact of dumped imports on the prices of similar goods on the market of the Member States, the following circumstances are established:

whether the prices of the goods subject to dumped imports were significantly lower than the prices of similar goods on the market of the Member States;
whether dumped imports have led to a significant reduction in the prices of similar goods on the market of the Member States;
whether dumped imports significantly prevented the increase in prices of similar goods on the market of the Member States, which would have occurred in the absence of such imports.

When conducting an anti-dumping investigation, the size of the dumping margin is determined, which is the ratio, expressed as a percentage, of the normal value of a product minus the export price of this product to its export price:

DM = (NV – EP) / EP x 100%,

Where

DM - dumping margin;

NV - normal value of the goods;

EP - export price of goods,

or the difference between the normal value of a product and its export price, expressed in absolute terms:

DM = NV – EP

If information received before the completion of the investigation indicates the presence of dumped imports and the resulting damage to the economic sector of the Member States, no earlier than 60 calendar days and no later than 7 months from the date of commencement of the investigation, the Commission makes a decision to impose a preliminary anti-dumping duty in order to preventing damage to the economic sector caused by dumped imports during the investigation period.

If the rate of the preliminary anti-dumping duty is equal to the size of the pre-calculated dumping margin, the validity period of the preliminary anti-dumping duty should not exceed 4 months.

If the rate of the preliminary anti-dumping duty is less than the pre-calculated dumping margin, the period of validity of the preliminary anti-dumping duty should not exceed 6 months.

If, based on the results of the investigation, the anti-dumping measure is not applied, the amounts of previously paid provisional anti-dumping duty are returned to the payer.

An anti-dumping measure can be applied in the form of:

anti-dumping duty;
approval of voluntary price commitments made by the exporter.

Anti-dumping duty is a duty that is applied when an anti-dumping measure is imposed and is levied regardless of the import customs duty. The amount of the anti-dumping duty cannot be higher than the calculated dumping margin.

The investigation may be suspended or terminated without imposing an anti-dumping duty upon receipt of price obligations from the exporter of a product in writing to revise the prices of this product or to terminate its export to the customs territory of the Union at prices below its normal value, if the acceptance of these obligations will eliminate the damage caused dumped imports, and the Commission will decide on their approval.

In case of violation or withdrawal of price obligations by the exporter, the Commission may decide to impose a provisional anti-dumping duty (if the investigation has not yet been completed) or an anti-dumping duty (if the final results of the investigation indicate that there are grounds for its imposition).

The anti-dumping measure is valid for no more than 5 years.

Before the expiration of the anti-dumping measure, a re-investigation may be conducted, which must be completed within 12 months from the date of its commencement.

In order to circumvent the anti-dumping measure, the method of supply of goods may be changed to evade payment of anti-dumping duties or to evade the fulfillment of price obligations accepted by the exporter.

To prevent the development of such a situation, a repeated investigation may be conducted in order to establish a circumvention of the anti-dumping measure. Such investigation must be completed within 9 months.

An anti-dumping measure, if a circumvention of an anti-dumping measure is established based on the results of a repeated investigation, may be extended to the components or derivatives of the goods that were the subject of dumped imports, as well as to the goods that were the subject of dumped imports, their components or derivatives imported into the customs territory of the Union from another country. exporting third country.

Compensatory measure

Compensatory measures apply to subsidized imports, i.e. import of goods, during the production, transportation or export of which specific subsidies were used in a foreign country.

The compensation measure is introduced to neutralize the impact of a specific subsidy of an exporting third country on the economic sector of the Member States.

Subsidies in the WTO are divided into 3 main categories:

prohibited (aimed at import substitution or directly related to export results), which must be eliminated by the WTO member country at the time of accession;
specific (“punished”) subsidies. It is these subsidies that are the subject of compensation investigations, because create preferential treatment for an enterprise/industry/region;
subsidies that are “horizontal” in nature, i.e. available, without exception, to all enterprises/industries/regions on equal terms. Such measures are not the subject of compensation investigations, because do not provide privileges to individual market entities.

The subsidy is specific if:

the provision of a subsidy is accompanied by a limitation on the number of individual organizations that are allowed to use the subsidy;
the provision of a subsidy is accompanied by preferential use of the subsidy by certain organizations;
the provision of a subsidy is accompanied by the provision of disproportionately large amounts of subsidies to individual organizations;
the provision of a subsidy is accompanied by the choice by the subsidizing authority of a preferential (preferential) method of providing subsidies to individual organizations.
the subsidy, as the only condition or one of several conditions, is linked to the export of the product;
the subsidy is linked, as the sole condition or one of several conditions, to the use of goods produced in the exporting third country instead of imported goods.

The size of a specific subsidy is determined on the basis of the amount of benefit derived by the recipient of such subsidy.

If information received before the completion of the investigation indicates the presence of subsidized imports and damage caused by these imports to the economic sector of the Member States, the Commission, no earlier than 60 calendar days and no later than 7 months from the date of commencement of the investigation, makes a decision to impose a preliminary countervailing duty for a period of up to 4 months in order to prevent damage to the economic sector of the Member States caused by subsidized imports during the investigation period.

A preliminary countervailing duty is imposed in an amount equal to the previously calculated specific subsidy of the exporting third country.

If, based on the results of the investigation, the countervailing measure is not applied, the amount of the preliminary countervailing duty is returned to the payer.

The compensation measure can be applied in the form of:

countervailing duty;
approval of voluntary commitments made by the authorized body of the subsidizing third country or the exporter.

A countervailing duty is a duty that is applied when a countervailing measure is imposed and is levied independently of the import customs duty.

The rate of countervailing duty must not exceed the specific subsidy of the exporting third country.

An investigation may be suspended or terminated without imposition of a countervailing duty if the Commission decides to approve one of the following voluntary undertakings (in writing):

the exporting third country agrees to eliminate or reduce subsidies or take appropriate measures to eliminate the effects of subsidies;
the exporter of the product that is the subject of the investigation agrees to revise the prices it sets for such product in such a way that the adoption of such voluntary commitments will eliminate the damage to the economic sector of the Member States.

If the voluntary undertakings are breached or withdrawn, the Commission may decide to impose a countervailing measure by imposing a provisional countervailing duty (if the investigation has not yet been completed) or a countervailing duty (if the final results of the investigation indicate that there are grounds for its imposition).

The duration of the compensation measure must not exceed 5 years.

Before the expiration of the compensatory measure, a re-investigation may be carried out, which must be completed within 12 months from the date of its commencement.

In order to circumvent the countervailing measure, the method of supply of goods may be changed to evade the payment of the countervailing duty or the fulfillment of accepted voluntary obligations.

To prevent such a situation from developing, a re-investigation may be conducted to determine whether the countervailing measure has been circumvented. Such investigation must be completed within 9 months.

The compensatory measure, if a circumvention of the compensatory measure is established based on the results of a repeated investigation, may be extended to components or derivatives of goods that were the subject of subsidized import imported into the customs territory of the Union from an exporting third country, as well as to goods that were the subject of subsidized import, its components or derivatives imported into the customs territory of the Union from another exporting third country.

Additional material on the topic in the section

Prohibitions and restrictions on foreign trade activities

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Collection of duties

Introduction and collection of duties

Article 9 of the WTO Anti-Dumping Agreement enshrines the general principle according to which the introduction of anti-dumping duties is not mandatory, even if the results of an anti-dumping investigation have established the presence of dumping, material damage, their relationship, and all other requirements for their introduction have been met.

The Agreement also states the desirability of applying the “lesser duty” rule. Under this rule, authorities are encouraged to set the anti-dumping duty level lower than the dumping margin if that level is sufficient to correct the injury.

In addition, the Agreement contains rules that limit the imposition of anti-dumping duties in excess of the proven dumping margin, as well as rules for the application of anti-dumping duties to new importers.

Review and public notice

Duration, termination and review of anti-dumping measures

Article 11 of the WTO Anti-Dumping Agreement sets out rules regarding the duration of anti-dumping duties and requirements for periodic review of existing anti-dumping duties or price commitments, if necessary.

These requirements were introduced in response to WTO members' concerns about the practice of some countries to impose anti-dumping duties indefinitely.

The “deadline” requirement states that dumping duties will cease no later than five years after their first application, unless reinvestigation before that date determines that the lapse of the duty would result in the continuation or resumption of dumping and harm. damage. The five-year period also applies to price commitments.

The Agreement also requires the review of existing anti-dumping measures at the request of an interested party.