Perfection Of China’s Anti-dumping Law On Price Adjustment Of Margins Of Dumping

Dumping margin is one of the key elements for imposing of anti-dumping duties. Firstof all, we need to determine the export price and the normal value of the investigatedcommodity. Due to the differences in markets, trade level and sale circumstance, it isnecessary to adjust the two different market prices. It is important to distinguish partsof the two prices and do the adjustment in order to reach the same level of trade atthe same time for the same or similar goods. Price adjustment is an adjustment forfee and cost of commodity from two markets. Adjustment has certain requirements.Items adjusted must have a direct link with the sales of goods and repeated adjustmentfor the same or similar costs cannot be admitted to achievecomparability requirements.At present, there exist endless works concerning the anti dumping law andpractice. However, works and research specifically for the dumpingmargin calculation are very rare. In the countries conductinganti-dumping practice, the antidumping laws of USA and EU are the most mature.Chinese anti-dumping legislation and practice largely made referenceto them. Therefore, this paper attempts to analyze the mechanism of price adjustmentin the U.S and EU in the field of anti-dumping law in order to understandthe cognizance and adjustment for the various costs of price adjustment inthe legislation and practice and improve the price adjustment system of China. Price adjustment is an important part of anti-dumping investigation and is clearlydefined in WTO Agreements. Article2.4of Anti dumping Agreement of WTO statesthat only after some adjustment price should be compared. It also lists some items ofadjustment, i.e. the conditions of sale, tax, trade level, the quantity, and physicalproperties of the commodity. While the USA and EU legislation is more completedand detailed and put great emphasis on the causal relationship between the priceadjustment and suitable comparison.In China, regulations concerning price adjustment are very vague and less detailed.And this paper examines the price adjustment mechanism in its preliminary and finaldetermination of the cases that Chinese government enforced from2008to2013. Thecurrent China price adjustment methods are summarized and analyzed to find out thespecific practices of Chinese Commerce Department in the case ofanti-dumping investigation.Based on the relevant discussions above, from the view of substance andprocedure, this paper provide some advices on the improvement of Chinese priceadjustment mechanism, hoping to perfect Chinese anti-dumping legal regime.