Font Size: a A A

On The Determination Of Normal Value In Anti-dumping

Posted on:2007-06-24Degree:MasterType:Thesis
Country:ChinaCandidate:F J LiuFull Text:PDF
GTID:2166360185957801Subject:Law
Abstract/Summary:
Normal value is a very important definition in anti-dumping law, it is abasic price that can determine if the products lodged exit dumping anddumping margin. The theory research of normal value is relativelybehindhand in China, and we always fall into passiveness in dealing withanti-dumping lawsuits, so this article researched questions connected withnormal value, I wish it could be a reference in anti-dumping lawsuits fromnow on.There are four parts in this article, here is the abstracts:The first expounded the status and determination principle of normalvalue in anti-dumping. Commonly there are three steps in the determinationof the exist of dumping: the determination of normal value, the determinationof export price and the compare of them. It is obvious that the determinationof normal value influences the determination of dumping, and it straightlydetermines the dumping margin, so it is the base of anti-dumping measuretaking. The anti-dumping measure is taken is because dumping distorted theprice level of competition mechanism, the international anti-dumpinglegislation tenet is avoiding and correcting the unfair acts in internationaltrade. Whereas, the function of trade protection of international anti-dumpinglaw does not conflict with free trade, because fair trade is the precondition offree trade, the function of trade protection of international anti-dumping lawcan maintain fair trade and competition.The second part explained several important notion connected withnormal value detailedly: like product, comparable price,ordinary course oftrade. Generally speaking, like product is the product that is identical orsimilar with exporter produced. WTO anti-dumping agreement and theanti-dumping law of EU mainly consider completely or approximately sameproduct in physical characters, whereas, USA considers not only the physicalcharacter, but the use. In practice, as long as the physical character isidentical, or the two kind of products can be exchanged in commercial use,USA will reckon on the two as identical ones. Comparable price is the pricethat is representational and can compare with export price of the productinvolved in lawsuits. It can be not only the actually sale price, but theconventional price in the contract. In the meantime, every country regulatesthe sale quantity when judging if one price can be the represent comparableprice. Ordinary course of trade is free market condition when trading. Hereare the three kind of deviant course of trade: distribution between relatedparties and distribution under cost price, distribution in non-market condition.Compensatory arrangement is goods exchange or purchasing back betweenpurchasers and bargainers, this kind of trade is also regarded as distributionbetween related parties. Distribution under cost price is that one countrydistributes its goods in advance and then take high monopoly, in order tooccupy import or export country markets. Of course, plenty of distributionunder cost price can not be regarded as going along in deviant course of trade,now many countries begin to take attention to this problem. Distribution innon-market condition is the phenomenon that non-market country exportproducts, we take on it as deviant course of trade mainly because exportproducts can not reflect the relation between producing costs and supply anddemand.The third part is divided into three parts, the normal value of exportproducts from different countries is determined in different conditionsrespectively.The determination of normal value of export product from marketeconomy countries in common condition: the first method is domestic price;the second one is third country price;the third one is constructed price.Determining normal value with domestic price is the most basic way, and it isalso the fist considered way. When using this way, two conditions should besatisfied: firstly, the distribution of like product in export country is inordinary course of trade;secondly, the distribution is representational, thequantity and season will be considered when estimate if on domestic price isrepresentational. If the product involved in lawsuits or like product is notdistributed in export country, or its quantity is very little, and domestic pricecan not come into being, normal value can not be determined by domesticprice, then import country can use third country price or constructed price.The crux of using third country price is the choice of the third country.Usually three standards are regulated: product standard, distribution standardand market standard. But this method is scarcely used from many reasons.Constructed price is always made up of producing costs, reasonable overheadexpenses, distribution expense, other costs and profits. Anti-dumping law ofalmost all the countries and WTO anti-dumping agreement regulatedgenerally same contents, but there is tiny difference in detail.There are three particular phenomenon in determination of normal valueof export product from marker economy countries: indirect dumping, tradebetween related parties(including compensatory arrangement), distributionunder cost price. In indirect dumping, product is exported to import countryfrom intermediate country, the determination of normal value should accordto distribution price of similar product from export country. The price oftrade between related parties and distribution under cost price go long indeviant course of trade, so domestic price can not be used in determination ofnormal value, usually, the former use weighted average, the latter useconstructed price, or third country price, or weighted average of thedistribution price of other producers.The determination of normal value of export product from non-marketeconomy country. Because the regulation of non-market economy country isinexplicit in WTO anti-dumping agreement, there is great subjectivity indetermination of non-market economy country. Every country in west alwaysuses third market economy country price or price of import country, so thestandard of surrogate country is the crux of the determination of normalvalue of export product from non-market economy country. In thedetermination of normal value of export product from non-market economycountry, USA mainly uses the method of value factor of product, EU mainlyuses these methods: first, actually price when surrogate country distributesproducts;second, constructed price of surrogate country;third, actually priceor price that should be paid. Those modus operandi are harmful to developingcountries.The fourth part discussed some problems existing in our country,concerning to the determination of normal value in anti-dumping lawsuits,including discrimination of trade partners, malignant competition of domesticcorporations, negatively answering lawsuits of domestic corporations, etc. Inthe meantime, the author try to put forward some resolving strategies, forexample, strengthen the negotiate power of the government, change theproducing area, etc, in order to transform the actuality that domesticcorporations always fall into passivity in answering anti-dumping lawsuits.
Keywords/Search Tags:Determination
Related items