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TERM |
DEFINITION |
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Accumulation
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The
cumulative assessment of the volume and price effects of imports of
the subject merchandise from all countries with respect to which
antidumping or countervailing duty petitions were filed if such
imports compete with each other and with domestic like products in the
export market. See Origin Regime, page 35, where this text may have
a slightly different meaning. |
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Administrative file |
Complete record of administrative
procedures. |
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Amount of subsidy
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Amount of financial contribution; transfer of funds; or other from of
income or price support paid for the manufacture, production, or
export of an article. |
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Antidumping Agreement
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Agreement Relating to the Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994, in Annex 1 A to the WTO Agreement
– WTO agreement resulting from the Uruguay Round that implements
Article VI of GATT 1994. |
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Antidumping duty
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Duty
applied to imports of a particular good from a specified country in
order to eliminate the harm being caused by the dumping to the
domestic industry of the importing country. Article VI of the GATT
1994 permits the imposition of antidumping duties against dumped
goods, equal to the difference between their export price and their
normal value, if dumping causes injury to producers of competing
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Business Proprietary Information
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Information of commercial value, the disclosure of which is likely to
have the effect of either impairing the investigator’s ability to
obtain such information as is necessary to perform its functions, or
causing substantial harm to the competitive position of the products
in the importing country. |
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Causal link
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Relationship or connection between a cause and an effect. A domestic
industry petitioning for an antidumping investigation must provide
evidence of a causal link between the dumped imports and the alleged
injury. See Safeguards, page 36, where this text may have a
slightly different meaning. |
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Circumvention |
Measures taken by exporters to evade antidumping or countervailing
duties. |
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Countervailing duty
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A special duty levied for the purpose of offsetting
any bounty or subsidy bestowed, directly, or indirectly, upon the
manufacture, production or export of any merchandise. No WTO member
may levy any countervailing duty on the importation of any product
of the territory of another unless it determines that the effect of
the subsidization is such as to cause or threaten material injury to
an established domestic industry, or is such as to retard materially
the establishment of a domestic industry. |
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Countervailing measures
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Action taken by the importing country, usually in the form of
increased duties to offset subsidies given to producers or exporters
in the exporting country. Additional duties imposed by the importing
country to offset government subsidies in the exporting country when
the subsidized imports cause material injury to domestic industry in
the importing country. |
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De minimis
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(Latin meaning “of the least”). The margin of dumping is considered
de minimis, or the volume of dumped imports, actual or
potential, or the injury, is considered negligible, if this margin
is less than 2 per cent, expressed as a percentage of the export
price. The investigation is then terminated. Moreover, the volume of
dumped imports shall normally be regarded as negligible if the
volume of dumped imports from a particular country is found to
account for less than 3 per cent of imports of the like product in
the importing Member, unless countries which individually account
for less than 3 percent of the imports of the like product in the
importing Member collectively account for more than 7 per cent of
imports of the like product in the importing Member. |
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Definitive duty
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The final legal assessment or collection of a duty or
tax where the facts as finally established show that there is
dumping and injury caused thereby. |
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Domestic industry |
Domestic producers as a whole of the like products or to those of them
whose collective output of the products constitutes a major
proportion of the total domestic production of those products. |
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Domestic subsidy |
Any act, practice, or measure other than an export
subsidy by which a government confers a benefit upon a product and/or
enterprise. See
“subsidy”, page 42. |
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Dumping
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Introduction of a product into the commerce of another country at less
than its normal value, if the export price of the product exported
from one country to another is less than the comparable price, in the
ordinary course of trade, for the like product when destined for
consumption in the exporting country. Selling merchandise in another
country at a price below the price at which the same merchandise is
sold in the home market or selling such merchandise below the costs
incurred in production and shipment Dumping occurs when goods are
exported at a price less than their normal value, generally meaning
they are exported for less than they are sold in the domestic market
or third-country markets, or at less than production cost. |
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Duty deposit |
This
refers to antidumping duties which must be deposited upon entry of
merchandise which is the subject of an antidumping duty order for each
manufacturer, producer or exporter equal to the amount by which the
foreign market value exceeds the price of the merchandise in the
domestic market. |
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Essential facts |
Crucial facts considered and used for the decision to apply, or not,
an antidumping measure. |
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Export subsidy
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A subsidy such as those described in the Illustrative List of Export
Subsidies of the WTO Agreement on Subsidies and Countervailing
Measures. See “subsidy”, page 42. |
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Final determination |
Final decision on an antidumping or subsidy investigation. |
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In situ investigation |
On-site investigation. |
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Initiation of an investigation |
Procedural action by which a WTO member formally commences an
antidumping investigation to determine the existence, degree and
effect of any alleged dumping. |
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Injury |
Occurs when the effect of the dumping or subsidization, as the case
may be, is such as to cause or threaten material injury to an
established domestic industry, or is such as to retard materially the
establishment of a domestic industry. |
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Investigating authority
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Body
in charge of carrying out an antidumping or subsidy investigation. |
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Investigation |
Procedure to determine the existence, degree, and effects of dumping
or subsidies. |
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Lesser duty |
A
duty which is less than the margin of dumping but adequate to remove
the injury to the domestic industry. |
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Like product |
A
product which is identical, i.e. alike in all respects to the product
under consideration, or in the absence of such a product, another
product which, although not alike in all respects, has characteristics
closely resembling those of the product under consideration. |
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Margin of dumping |
The
difference between the comparable price of the like product when
exported to anappropriate third country and the cost of production in
the country of origin plus a reasonable amount for administrative,
selling and general costs and for profits. |
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Normal course of trade |
Sales made in the course of normal operations. |
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Normal value |
The
price at which merchandise is sold or offered for sale in the
principal markets of the country from which it is exported. |
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Preliminary investigation |
Initial procedure to determine the existence, degree, and effects of
dumping or subsidization. |
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Price undertaking |
Undertaking by an exporter to raise the export price of the product to
avoid the possibility of an antidumping duty. |
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Prospective |
Effective or operative in the future. |
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Provisional duty |
Provisionally applied as opposed to definitive duty. |
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Public interest |
The
general welfare of the public that warrants recognition and
protection. |
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Constructed/ Reconstructed value |
A
means of determining fair or foreign market value when sales of such
or similar merchandise do not exist or, for various reasons, cannot be
used for comparison purposes. The “constructed value” consists of the
cost of materials and fabrication or other processing employed in
producing the merchandise, general expenses of not less than 10
percent of material and fabrication costs, and profit of not less than
8 percent of the sum of the production costs and general expenses. To
this amount is added the cost of packing for exportation to the export
market. |
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Relevant market |
The
relevant market is determined on the basis of first establishing the
relevant product
market and geographic market. The relevant product market comprises
all the products
and/or services that the consumer and/or user consider to be
interchangeable or
substitutable by reason of their characteristics, price or intended
use. The relevant
geographic market comprises all areas in which competitors in the
relevant product market compete with each other in the sale or
purchase of products under equal
competition conditions. Geographic areas in which the competition
conditions are
significantly different are not taken into account in determining the
relevant geographic market. See Competition Policy, page 22, where
this text may have a slightly different meaning. |
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Retrospective
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Taking effect from a date in the
past. |
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Review determination
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Review of rights and obligations
that might be initiated by the investigating authority. |
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Subsidy |
An
export subsidy is a benefit conferred on a firm by the government that
is contingent on
exports. A domestic subsidy is a benefit not directly linked to
exports. |
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Subsidies Agreement |
Agreement on Subsidies and Countervailing Measures in Annex 1 a to the
WTO Agreement (also known as SCM Agreement) - The Agreement on
Subsidies and
Countervailing Measures is intended to build on the Agreement on
Interpretation and
Application of Articles VI, XVI and XXIII which was negotiated in the
Tokyo Round. |
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Sunset review |
Procedure under which an antidumping or countervailing duty
automatically
terminates at the end of a fixed period unless it is formally renewed. |
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Verification schedule
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A timetable for the verification
of documents by the investigative authority. |
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Weighted average |
The
percentage determined by dividing the aggregate dumping margins
determined for a specific exporter or producer by the aggregate export
prices and constructed export prices of such exporter or producer.
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Zeroing |
In a
comparison of the weighted average normal value with the weighted
average of prices of comparable export transactions for the product
under an antidumping
investigation, the practice of assigning a zero margin to a negative
dumping margin
(when the export price is above the normal price) found for any export
transaction. |
