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SECTION 301: Anti-Dumping Investigation

JOINT ADMINISTRATIVE ORDER NO. 01
Series of 2000
IMPLEMENTING RULES AND REGULATIONS GOVERNING
THE
IMPOSITION OF AN ANTI-DUMPING DUTY UNDER REPUBLIC ACT 8752 -
THE ANTI-DUMPING ACT OF 1999
In view of the amendments to Section 301 of the Tariff and
Customs Code of the Philippines brought about by the passage of RA 8752, otherwise known
as the ANTI-DUMPING ACT OF 1999, and by authority of Subsection 7
thereof, the following rules and regulations are hereby prescribed for the compliance of
all concerned:
Section 1. Scope Scope
- The provisions of
this Implementing Rules and Regulations (IRR) shall apply to any product which is imported
into the Philippines at an export price less than its normal value in the ordinary course
of trade for the like product when destined for consumption in the country of export or
origin and which is causing or is threatening to cause material injury to a domestic
industry, or materially retarding the establishment of a domestic industry producing the
like product in the Philippines.
The shipment and/or consignment of the following products shall not be
subject to an anti-dumping protest:
(a) Products imported by or consigned to government agencies not organized for profit
and particularly designated by law or, proper authorities to import, directly or through
awardees, such products as would stabilize or supplement shortages; and
(b) Conditionally duty-free importations allowable under Section 105 of the Tariff and
Customs Code of the Philippines, as amended.
Section 2. Definition of Terms
Definition of Terms - For
purposes of this IRR, the following definition of terms shall prevail:
(a) "AGRICULTURAL PRODUCT " refers to a product classified
under Chapters 1 to 24 of the Tariff and Customs Code of the Philippines, including those
under the specific tariff lines listed in Annex A.
(b) "ANTI-DUMPING DUTY" refers to a special duty imposed on the importation
of a product into the Philippines at less than its normal value when destined for domestic
consumption in the country of export or origin, it being the difference between the export
price and the normal value of such product.
(c) "ARMS LENGTH
TRANSACTION" refers to a transaction where the price is not affected by any
relationship between the buyer and the seller, or if there is no compensation,
reimbursement, benefit or other consideration given in respect of the price.
(d) 'CAUSAL LINK" refers to a finding that the material injury
suffered by the domestic industry is the direct result of the importation of the dumped
product.
(e) "COMMISSION' refers to the Tariff Commission.
(f) "COMPARABLE PRICE" refers to the domestic price of the like
product in the country of export or origin at the same level of trade, normally at the
ex-factory level, and in respect of sales made at the same time as, or as near as possible
to, the date of exportation to the Philippines.
(g) "COUNTRY OF EXPORT' is the country where the allegedly dumped
product was shipped to the Philippines, regardless of the location of the seller. The
country of export and the country of origin may be the same, but not in all instances.
(h) "COUNTRY OF ORIGIN" is the country where the allegedly
dumped product either was wholly obtained or where the last substantial transformation
took place. The country of origin and the country of export may be the same, but
not in all instances. In the case of transshipment where a product is shipped from a third
country that is not the country where the product was manufactured or processed, the
country of origin will be different from the country of export.
(i) "DOMESTIC INDUSTRY" refers to the domestic producers as a whole of the
like product or to those of such producers whose collective output of the product
constitutes a major proportion of the total domestic production of that product, except
that when producers are related to the importers or foreign exporters or are themselves
importers of the allegedly dumped product, the term "domestic industry" may be
interpreted as referring to the rest of the producers.
Producers shall be deemed to be related to importers or foreign exporters only if:
1. one of them directly or indirectly controls the other; or
2. both of them are directly or indirectly controlled by a third
person; or
3. together they directly or indirectly control a third person,
provided that there are grounds to believe or suspect that the effect of the relationship
is such as to cause the producer concerned to behave differently from non-related
producers.
For this purpose, one shall be deemed to control another when the
former is legally or operationally in a position to exercise restraint or direction over
the latter.
If available data does not permit the separate identification of the
domestic production of the like product, the domestic production shall refer to the
production of the narrowest group or range of products which includes the like product for
which the necessary information is available.
(j) "DUMPED IMPORT/ PRODUCT" refers to any product which is
imported into the Philippines at an export price less than its normal value in the
ordinary course of trade for the like product destined for consumption in the country of
export or origin, and which is causing or is threatening to cause material injury to a
domestic industry, or materially retarding the establishment of a domestic industry
producing the like product.
(k) "FOREIGN EXPORTER" refers to one whose name appears on
documentation attesting to the export of the product to the Philippines regardless of the
manufacturer's name in the invoice.
(l) "EXPORT PRICE" refers to (1) the ex-factory price at the
point of sale for export; or (2) the freight-on-board (F.O.B.) price at the point of
shipment, of the allegedly dumped product. In cases where (1) or (2) cannot be used, then
the export price may be constructed based on such reasonable bases as the Secretary or the
Commission may determine.
(m)"INTERESTED PARTIES" refer to persons or entities which
are directly affected by the investigation. They shall include (1) a domestic importer, a
foreign exporter or producer of the product subject to investigation, or a trade or
business association a majority of the members of which are importers, foreign exporters
or producers of such product; (2) the government of the country of export or origin; and
(3) a producer of the like product in the Philippines or a trade and business association
a majority of the members of which produce the like product in the Philippines.
(n) "LIKE PRODUCT" refers to a product which is identical or
alike in all respects to the allegedly dumped product, or in the absence of the former,
another product which, although not alike in all respects, has characteristics closely
resembling those of the allegedly dumped product.
(o) "NEW FOREIGN EXPORTER" refers to a foreign exporter who
did not export the allegedly dumped product during the investigation period.
(p) "NON-AGRICULTURAL PRODUCT " refers to a product
classified under Chapters 25 to 97 of the Tariff and Customs Code of the Philippines,
excluding the products defined in Annex A.
(q) "NON-SELECTED FOREIGN EXPORTER OR PRODUCER" refers to a
foreign exporter or producer who has not been initially selected for the purpose of
computing the individual margins of dumping.
(r) "NON-MARKET ECONOMY" refers to the country of export or
origin where the government (1) has a monopoly or substantial monopoly of trade of the
country and; (2) determines or substantially influences the domestic price of the products
in that country.
(s) "NORMAL VALUE" refers to a comparable price at the date
of sale of the like product in the ordinary course of trade when destined for consumption
in the country of export or origin.
(t) "PRICE DEPRESSION" refers to the extent at which the
domestic producer reduces its selling price in order to compete with the allegedly dumped
product.
(u) "PRICE SUPPRESSION" refers to the extent by which the
allegedly dumped product prevents the domestic producer from increasing its selling price
to a level that will allow full recovery of its cost of production.
(v) "PRICE UNDERCUTTING" refers to the extent at which the
allegedly dumped product is consistently sold at a price below the domestic selling price
of the like product.
(w) "SECRETARY" refers to the Secretary of Trade and Industry
in the case of non-agricultural product or the Secretary of Agriculture, in the case of
agricultural product, or their duly designated representatives.
(x) "TRANSSHIPMENT" refers to a case where the allegedly
dumped product is not imported directly from the country of origin but is physically
shipped through a third country without, however, entering into the commerce thereof.
Section 3. Initiation of Action
(a) Information and other forms of assistance to the domestic industry:
The Secretary and the Commission shall, upon request, make available to
the public general information concerning the anti-dumping measure and other forms of
trade remedies. Such information may include the procedures to be followed and the
appropriate dates or milestones in investigations related to the imposition of such
measures.
The Secretary and the Commission shall also provide, to the extent
possible at all stages of the action, assistance and advice to interested parties which
seek to obtain the remedies and benefits of the antidumping measure, such assistance and
advice to include the following:
1 . Information on import volumes and values, at the specific product
level;
2. Information on prices and costs of production in other countries,
and other relevant information; and
3. Informal legal and technical advice on the appropriateness of
invoking the anti-dumping measure as a remedy for the trade problem, and on the
availability of information in support of the proposal.
Philippine trade, agriculture or finance attachés and other consular
officials or attachés in the countries of export or production are also mandated to
furnish the applicant pertinent information or documents related to the allegedly dumped
product within a period not exceeding thirty (30) days from receipt of a request.
The Department and the Commission shall coordinate with their
representatives in other countries and/or tap other information sources in building a
database of these information.
Receipt of these forms of assistance shall not be construed as a
guarantee that the recipient will prevail in the anti-dumping investigation.
(b) Petitioners
1. Any person whether natural or juridical, representing a domestic
industry may file a written application using the pro-forma protestant's questionnaire,
duly supported by relevant documents which shall include evidence of a) dumping, b)
injury, and c) causal link between the importation of the allegedly dumped products and
the alleged injury. The applicant shall submit four (4) copies of the application,
including annexes, two (2) copies of which shall contain the non-confidential summaries of
the information submitted. Simple assertions, unsubstantiated by relevant evidences,
cannot be considered sufficient to meet the requirements of this paragraph.
2. A properly documented application shall contain relevant evidences
and information reasonably available to the applicant on the following:
i. identity of the applicant and a description of the volume and the
value of his domestic production of the like product;
ii. a list of all known domestic producers of the like product and, if
possible, a description of the volume and value of domestic production of the like product
accounted for by such producers, if the application is made on behalf of the domestic
industry;
iii. complete description of the allegedly dumped product;
iv. name of the country of export or origin of the allegedly dumped product;
v. identity of each known foreign exporter or producer of the allegedly dumped product,
or their duly authorized representative organizations;
vi. list of known persons importing the allegedly dumped product with
their last known address;
vii. information on the normal value of the allegedly dumped product in
the country of export or origin or, if appropriate, information on the prices at which the
product is sold from the country of export or origin to a third country or, on the
constructed value of such product;
viii. information on export prices or, if appropriate, on prices at
which the product is first resold to an independent buyer in the Philippines;
ix. information on the evolution of the import volume of the allegedly dumped products;
x. effect of the price of the allegedly dumped products on the price of the like
product in the domestic market; and
xi. consequent impact of the importation of the allegedly dumped products on the
domestic industry demonstrated by relevant factors and indices having a bearing on the
state of the domestic industry as enumerated in Section 12 of this IRR.
3. The application shall include a certification signed by the
applicant that the information presented therein are accurate and complete to the best of
his knowledge.
(c) Filing of a Petition
1 . The duly accomplished application, using the pro-forma protestant's
questionnaire, shall be filed with the Secretary of Trade and Industry in the case of a
non-agricultural product, or with the Secretary of Agriculture in the case of an
agricultural product.
2. Upon the acceptance of a properly documented application, the
Secretary shall require the applicant to post a surety bond to answer for any and all
damages that the importer may sustain by reason of the filing of a frivolous petition.
Failure to post the surety bond within ten (10) days shall result in the dismissal of the
application.
The surety bond shall be equal to ten percent (10%) of the value of
the importation of the allegedly dumped product during the applicable period of
investigation as provided in Section 11.a: Provided, That the surety bond shall not exceed
two hundred fifty thousand pesos (Php 250,000.00) in the case of an agricultural product,
or five hundred thousand pesos (Php 500,000.00) in the case of a non-agricultural product.
The Secretary shall order the immediate release of the surety bond upon determining that
the petition is not frivolous.
3. The application is not frivolous if the reason for its dismissal is
a de minimis margin of dumping or negligible volume or injury as defined in Section
9 of this IRR. It is also not frivolous if, based on evidences available to the Secretary,
the causal link cannot be established which prevents the issuance of an Order to impose a
provisional measure.
In determining whether an application is frivolous or not, either of
the following factors may be taken into account:
i. Whether there is any intentional misrepresentation of the
information or evidence supplied in the application; or
ii. Whether there is any other evidence of bad faith on the part of the
applicant.
4. The Secretary shall preliminarily screen the application if the
following conditions are met:
i. The application is signed;
ii. All relevant questions are answered or the reasons for the absence
of information are given;
iii. The attachments to the application are complete; and
iv. The application is supported by a sufficient part of the Philippine
industry producing the like product.
Failure to supply all the information sought in the application will
lead to the non-acceptance thereof. The Secretary shall check the consistency of the
information provided in the application against other information available to him. The
Secretary shall clarify any unclear or ambiguous statement with the applicant.
As soon as the requirements are completed, the Secretary shall
acknowledge in writing that he has already accepted a properly documented application. The
date of the Secretary's letter shall be considered as day zero (0) of the five (5) days
within which he is required to determine whether there is sufficient evidence to justify
the initiation of an investigation. The Secretary shall issue the letter, as soon as
practicable from his receipt of a properly documented application. If the applicant
decides to give the Secretary further information in support of an application, the five
(5) day period herein mentioned shall recommence, from the date of the submission of the
new information. After this period, the Secretary shall no longer entertain any
information that may be provided by the applicant.
(d) Requirements for Initiation
1 . The Secretary shall, within five (5) working days from the date of
his letter accepting the properly documented application referred to in Section 3.c.4,
examine the accuracy and adequacy of the petition to determine whether there is sufficient
evidence to justify the initiation of an investigation. The evidence of both dumping and
injury shall be considered simultaneously a) in the decision whether or not to initiate an
investigation, and b) thereafter, during the course of the investigation, starting at the
earliest date when provisional measures may be applied.
In assessing the sufficiency of evidence provided in the application,
the Secretary will only satisfy himself that there is evidence that indicates dumping or
the likelihood of dumping, and material injury based on the evidences submitted by the
applicant.
If there is no sufficient evidence to justify the initiation of an
investigation, the Secretary shall dismiss the petition and notify the Secretary of
Finance, the Commissioner of Customs and other parties concerned regarding such dismissal.
2. An investigation shall not be initiated unless it has been
determined that the application has been made "by or on behalf of the domestic
industry." The application shall be considered to have been made "by or on
behalf of the domestic industry" if it is supported by those domestic producers whose
collective output constitutes more than fifty percent (50%) of the total production of the
like product produced by that portion of the domestic industry expressing either support
for, or opposition to, the application. In cases involving an exceptionally large number
of producers, the degree of support and opposition may be determined by using a
statistically valid sampling technique or by consulting their representative
organizations.
3. No investigation shall be initiated when domestic producers
expressly supporting the application account for less than twenty five percent (25%) of
total production of the like product produced by the domestic industry.
4. In exceptional circumstances, the Philippines may be divided into
two (2) or more competitive markets and the producers within each market may be regarded
as a separate industry if a) the producers within such market have the dominant market
share and b) the demand in that market is not substantially supplied by other producers
elsewhere in the Philippines.
5. If in special circumstances, the Secretary decides to initiate an
investigation without having received a written application by or on behalf of a domestic
industry for the initiation of such investigation, he shall proceed only if he has
sufficient evidence of dumping, injury, and causal link to justify the initiation of an
investigation.
These special circumstances may involve, among others:
i. The absence of a national organization of producers, if there are
many small-scale producers of the like product which cannot be regarded as a separate
industry under the criteria set forth in Section 3.d.4 of this IRR;
ii. The inability of a national or local organization of producers to
file an application due to limited resources; or
iii. The presence of a national or local emergency which prevents the
affected domestic industry from filing a petition.
6. All persons in or against whom any right to relief in respect to the
alleged dumping is claimed to exist may, upon the discretion of the Secretary or the
Commission, join as petitioners or be joined as respondents in one (1) petition, where any
question of law or fact common to all such respondents may arise in such anti-dumping
action.
Section 4. Notice to the Secretary of Finance
(a) Within three (3) days from the receipt of the application, the
Secretary shall notify the Secretary of Finance and furnish him with a complete copy or
summary of the application, or of the information supporting an anti-dumping action in
case the Secretary initiates the investigation on his own motion.
(b) The Secretary of Finance shall inform the Commissioner of Customs,
within three (3) days from receipt of the notice by the Secretary as defined in the
preceding paragraph, of the filing and pendency of the application or information for
anti-dumping action and instruct him to gather and furnish the Secretary, within five (5)
days from receipt of the instructions of the Secretary of Finance certified true copies of
all import entries and relevant documents covering such allegedly dumped product imported
into the Philippines during the last twelve (1 2) months preceding the date of
application. The Commissioner of Customs shall likewise make such similar additional
reports on the number, volume, and value of the importation of the allegedly dumped
product to the Secretary every ten (1 0) days thereafter. Under no circumstances shall an
anti-dumping investigation hinder the implementation of the procedures for custom
clearance.
Section 5. Notice to the Country of Export or Origin
Upon his acceptance of a properly documented application and before
proceeding to initiate an investigation, the Secretary shall notify the government of the
country of export or origin about the impending anti-dumping investigation and provide it a
copy of the non-confidential summary of the application. However, the Secretary shall
refrain from publicizing the application for the initiation of the investigation before a
decision has been made to do so.
Section 6. Notice to Concerned Parties and Submission
of Evidences
(a) Within four (4) days after he makes the decision to initiate a preliminary
investigation, the Secretary shall cause the publication of the notice of initiation of
preliminary investigation in two (2) newspapers of general circulation. The date of
publication shall be considered as day one (1) of the initiation of the investigation.
The public notice of the initiation of an investigation shall contain, unless otherwise
made available through a separate report, adequate information on the following matters:
i. The nature of the allegedly dumped product;
ii. The country concerned;
iii. A summary of the particulars of the injury and basis of the
alleged dumping in the application;
iv. The time period for the submission of evidences or views to the
Secretary;
v. The date of the initiation of the investigation; and
vi. The address to which representations by interested parties shall be
directed.
(b) Within two (2) days from the initiation of the investigation and
after having notified the country of export or origin, the Secretary shall:
i. Identify all known interested parties i.e. importer, foreign exporter and/or
producer, and notify them of the initiation of the investigation;
ii. Furnish them with a copy of the initiation report, petitioner's
application, and its annexes, subject to the requirement to protect confidential
information; and
iii. Provide them with a pro-forma respondent's questionnaire.
The respondent is required to submit within thirty (30) days from the
receipt of such notice the completed pro-forma respondent's questionnaire and other
evidence and information to dispute the allegations contained in the application.
In cases where the number of known interested parties is so large that
it is impractical to provide a non-confidential copy of the documents to each of them, a
copy will be given to the government of the country of export or origin and to the
representative organizations. These documents shall also be made available to other
interested parties involved upon request.
The notice shall be deemed to have been received five (5) days from the
date on which it was sent by registered mail or transmitted by fax to the respondent or
the appropriate diplomatic or official representative of the country of export or origin.
Philippine trade or agriculture attaches and other consular officials
in the concerned country of export or origin may also be provided a copy of the notice of
initiation, the non-confidential application, and the proforma respondent's questionnaire.
(d) The Secretary and the Commission shall provide opportunities for
industrial users of the allegedly dumped product, and for representative consumer
organizations in cases where such product is commonly sold at the retail level, to provide
information which is relevant to the investigation.
(e) The pro-forma respondent's questionnaire shall be used by both the
Secretary and the Commission in their respective inquiries. Whenever any interested party
fails to respond adequately to such questionnaire, is unable to produce information
requested, refuses access to or otherwise does not provide any other information within
the period allowed for the investigation, or otherwise significantly impedes the
investigation, the preliminary or final determination of the conditions required in an
anti-dumping investigation shall proceed on the basis of facts available. Even though the
information provided by any interested party may not be complete in all respects, this
shall not be disregarded provided the interested party is deemed to have acted to the best
of his ability.
If any evidence or information is not accepted by the Secretary, the
supplying party shall be informed forthwith of the reason/s therefor, and shall be given
an opportunity to provide further explanations: Provided, That this will not impede the
investigation considering the period required for the Secretary to make a preliminary
determination. If the explanations are not satisfactory, the reasons for the rejection of
such evidence or information shall be given in the report containing the preliminary
determination.
(g) Information which are confidential, either by nature or
which are provided on a confidential basis, shall not be disclosed without the expressed
permission of the supplying party. The interested parties providing confidential
information shall be required to provide two (2) copies of non-confidential summaries
thereof to be placed in a public file and made available to all interested parties upon
the initiation of the investigation. These summaries shall contain sufficient details to
permit a reasonable understanding of the confidential information to enable other parties
to respond to claims based on such information. In exceptional circumstances, wherein
summarization of confidential information is not possible, the supplying party must state
the reason why it cannot be provided. Where any request for confidentiality is not
warranted or the supplier of the information is either unwilling to make the information
public or to authorize its disclosure in summary form, such information may be
disregarded, unless it can be shown from appropriate sources that the information is
correct.
The following information may be considered confidential
if so designated by the supplying party:
1 . Business or trade secrets concerning the nature of the product or
the production process;
2. Production costs but not the identities of the production
components, unless these are trade secrets;
3. Distribution costs but not the channels of distribution;
4. Terms of sale but not those offered to the public;
5. Prices of individual sales, likely sales, or other offers but not
components of prices, such as transportation, if based on published schedules, dates of
sale, order numbers, or product descriptions (other than business or trade secrets
described in (1);
6. Names of particular customers, distributors, or suppliers but not
destinations of sale or designation of type of customer, distributor or supplier, unless
the destination or designation would reveal the name;
7. Exact amount of the dumping margin on individual sales;
8. Names of particular persons from whom confidential information was
obtained; and
9. Any other specific business information which, if released to the
public, would cause substantial harm to the competitive position of the supplying party.
(h) In order to verify information contained in the application or to
obtain further details, the Secretary may conduct visits, or ocular inspections
of the
facilities, of the domestic producers and importers. The Secretary may also visit other
domestic producers and importers that have not provided submissions during the
investigation.
(i) A public file shall be maintained by the Secretary and the
Commission for all investigations initiated. It shall contain a copy of all submissions
from interested parties and all relevant correspondences concerning the investigation,
subject to confidentiality considerations. The public file will be made available to any
interested party upon request.
The following will normally be considered as public information:
1 . Factual information of a type that has been published or otherwise
made available to the public by the supplying party;
2. Factual information that is not designated as confidential by the
supplying party;
3. Factual information that although designated as confidential by the
supplying party:
i. is in a form that cannot be associated with a particular party; or
ii. has been determined by the authorities as not deserving
confidential treatment;
4. Publicly available laws, regulations, decrees, orders and other
official issuances of a country; and
5. Written arguments relating to the investigation that is not
designated as confidential.
Section 7. Preliminary Determination
(a) Not later than thirty (30) working days from receipt of the answer
of the respondents and other interested parties, the Secretary shall, on the basis of the
application, the answers of the respondents, and the respective supporting documents or
information, make a preliminary determination of the need for the imposition of a
provisional antidumping duty.
(b) The Secretary shall essentially determine the following in the
preliminary determination:
1 . Price difference between the export price and the normal value of
the allegedly dumped product in the country of export or origin;
2. Presence and extent of material injury or threat of material injury
to the domestic industry producing the like product or the material retardation of the
establishment of a domestic industry producing the like product; and
3. Causal relationship between the allegedly dumped product and the
material injury or threat of material injury to the affected domestic industry or the
material retardation of the establishment of a domestic industry producing the like
product.
The Secretary shall take into account the effects of the seasonality of
products, whenever applicable, in the preliminary determination of whether or not the
elements for the imposition of a provisional antidumping duty exist.
(c) The preliminary findings of the Secretary, if affirmative, together
with the records of the case, shall be transmitted to the Commission for its immediate
formal investigation within three (3) days from adopting the decision. However, if the
preliminary findings of the Secretary are negative, the case shall be dismissed.
Section 8. Appraisement and Delivery of Products Upon
Filing of Provisional Anti-Dumping Duty.
(a) If the preliminary finding of the Secretary is affirmative and to
prevent further injury during the investigation, the Secretary shall immediately issue
through the Secretary of Finance, written instructions to the Commissioner of Customs to
impose within three (3) days from receipt of instructions, a cash bond equal to the
provisionally estimated antidumping duty but not greater than the provisionally estimated
margin of dumping, in addition to any other duties, taxes and charges imposed by law, on
the allegedly dumped product. The Secretary may order the imposition of a cash bond lower
than the provisionally estimated margin of dumping if it is deemed sufficient to remove or
prevent the material injury while the case is under formal investigation.
The Secretary may suspend the imposition of the provisional antidumping
duty, taking into consideration the following factors, among others: 1) if the imposition
of the provisional duty will result in a political or economic crisis; or 2) if such
imposition will cause a severe shortage of the like product in the domestic market.
(b) Within three (3) days from receipt of instructions from the Secretary of Finance to
impose the cash bond, the Commissioner of Customs shall instruct the Collector of Customs
to collect the regular duties, taxes and other charges, if any, on the shipment involved
so that such regular duties could be paid together with the cash bond. The Commissioner of
Customs may only authorize the release of the allegedly dumped product after the regular
duties have been paid and the cash bond has been deposited.
(c) The cash bond shall be deposited with a government depository bank and shall be
held in trust for the respondent who posted the bond.
(d) The posting of the cash bond shall only be required no sooner than six (60) days
from the date of initiation of the investigation. The dates, of the initiation of the
investigation shall be the date the Secretary publishes such notice in two (2) newspapers
of general circulation.
(e) The provisional anti-dumping duty may be imposed for a period of
four (4) months, which may be extended to six (6) months upon request of the foreign
exporter representing a significant percentage of the trade involved. However, a
provisional anti-dumping duty lower than the provisionally estimated margin of dumping can
be imposed for a period of six (6) to nine (9) months, if it is deemed sufficient to
remove or prevent the material injury.
The relevant provisions of Section 18 of this IRR shall be followed in
the application of the provisional anti-dumping duty.
Section 9. Termination of Investigation
(a) The Secretary or the Commission, as the case may be, shall
motu proprio terminate the investigation at any stage of the proceedings if the
provisionally estimated margin of dumping is less than two (2) percent of the export price
or the volume of the allegedly dumped products or injury is negligible, as defined in
existing international trade agreements of which the Republic of the Philippines is a
party.
(b) The volume of the allegedly dumped products from a particular
country shall normally be regarded as negligible if it accounts for less than three
percent (3%) of the total imports of said product in the Philippines unless countries
which individually account for less than three percent (3%) of the total imports of the
said product in the Philippines collectively account for more than seven percent (7%) of
the total imports of that product.
Section 10. Formal Investigation by the Commission
(a) Within three (3) working days upon its receipt of the records of
the case from the Secretary, the Commission shall start the formal investigation and shall
accordingly notify in writing all parties on record and, in addition, give public notice
of the exact initial date, time and place of its formal investigation through the
publication of such particulars, and a concise summary of the application, in two (2)
newspapers of general circulation.
(b) The Commission shall conduct the formal investigation to determine
the following:
1. If the domestic product is identical or alike in all respects to the allegedly
dumped product, or in the absence of the former , another product which, although not
alike in all respects, has characteristics closely resembling those of the allegedly
dumped product.
2. If the allegedly dumped product is being imported into, or sold in
the Philippines at a price less than its normal value and the difference, if any, between
the export price and the normal value;
3. The presence and extent of material injury or the threat thereof to
the domestic industry, or the material retardation of the establishment of a domestic
industry producing the like product;
4. The existence of a causal relationship between the allegedly dumped
product and the material injury or threat of material injury to the affected domestic
industry, or the material retardation of the establishment of a domestic industry
producing the like product;
5. The anti-dumping duty to be imposed; and
6. The duration of the imposition of the anti-dumping duty.
(c) The Commission shall require all interested parties to appear for a
preliminary conference on the schedules and procedure of the investigation, the nature of
the administrative and fact-finding proceedings, the non-applicability of the technical
rules of procedures provided by the Rules of Court, the non-availability of confidential
information, and other related matters relative to the speedy disposition of the case and
shall require them to submit their respective initial memoranda or position papers within
fifteen (15) working days from notice.
(d) The formal investigation shall be conducted in a summary manner. No
dilatory tactics or unnecessary or unjustified delays shall be allowed and the technical
rules of evidence used in regular court proceedings shall not be applied.
The Commission shall take into account the effects of the seasonality
of products, whenever applicable, in the final determination of whether or not the
elements for the imposition of an anti-dumping duty exist.
(e) The Commission shall, after due notification, conduct a public
consultation to give all parties directly affected and such other interested parties that
in the judgment of the Commission are entitled to attend, an opportunity to be heard and
to present evidence bearing on the subject matter. The purpose of this public consultation
is to determine whether or not the allegedly dumped product is imported at a price less
than its normal value and by reason thereof, the domestic industry producing the like
product is being injured materially.
(f) Where the information provided in the pro-forma questionnaires
submitted by the protestant and respondent are insufficient, the Commission may require
the submission of additional information from the applicant, domestic producers,
importers, foreign exporters or producers, that may be useful in the overall evaluation of
the case.
(g) The Commission shall require any interested party to allow it
access to, or otherwise provide, necessary information to enable the Commission to
expedite the investigation. The Commission may conduct on-site investigations of the
domestic producers, importers, foreign exporters or producers concerned, including ocular
inspections of their facilities, to verify information provided or obtain further details.
The Commission may also visit other domestic producers, importers, foreign exporters or
producers who have not provided a submission to the investigation. Visits or inspections
may be conducted by the Commission even without the presence of interested parties.
In the case of an on-site investigation involving a foreign exporter or
producer, the Commission shall obtain the agreement of the firms concerned. As soon as the
agreement of the parties has been confirmed, the Commission shall notify the government of
the country of export or origin of the names and addresses of the parties to be visited
and the dates agreed upon. Sufficient advance notice shall be given to the parties in
question before the visit is made.
Prior to the visit, these firms shall be advised of the general nature
of the information to be verified and of any further information which needs to be
provided, although this shall not preclude requests to be made on the spot for further
details to be provided in the light of information obtained. Inquiries or questions by the
Commission or the parties shall, whenever possible, be answered before the visit is made.
The Commission shall make the results of such on-site investigation available to such
parties subject to the requirements of protecting confidential information.
The procedures described above shall also apply to on-site
investigations carried out in the territory of countries other than the countries of
export or origin.
(h) In case any or all of the parties on record fail to submit their
answers to position papers or to questionnaires within the prescribed period, the
Commission shall base its findings on the best available information.
(i) The relevant provisions of Section 6 of this IRR, especially those
on the treatment of confidential information and acceptance of evidences, shall also be
followed in the formal investigation.
Section 11. Determination of Dumping
(a) The Secretary and the Commission shall determine the existence of
dumping by making a fair comparison between the export price and the normal value of the
allegedly dumped product, covering all transactions for the allegedly dumped product
during the period of investigation (POI). In general, the POI for the determination of the
margin of dumping or price difference shall cover import transactions made at least six
(6) months prior to the date of filing of the petition: Provided, however, that in some
cases, the POI may be adjusted to cover a shorter period in order to take into account
other considerations that will ensure the appropriateness of the chosen POI, e.g.,
seasonality of products, availability of data, drastic increase in the importation of the
dumped product, or facility in the verification of data.
(b) The comparison shall be made at the same level of trade, normally
at the ex-factory level, and in respect of sales made at the same time or as near as
possible to the date of exportation. Due allowance shall be made in each case for
differences which affect price comparability including differences in conditions and terms
of sale, taxation, levels of trade, quantities, physical characteristics and any other
differences which are also demonstrated to affect price comparability.
Where the normal value and export price as established are not
comparable, adjustments can be made on the basis of the following factors:
1 . Physical characteristics, for which the amount of adjustment shall
correspond to a reasonable estimate of the market value of the difference;
2. Import charges and indirect taxes, for which the adjustment shall be
made to the normal value for an amount corresponding to any import charges or indirect
taxes borne by the allegedly dumped product and by materials physically incorporated
therein when intended for consumption in the country of export or origin and not collected
or refunded in respect of the exported product;
3. Discounts, rebates, and quantities which are directly linked to the
sales under consideration;
4. Level of trade, for which the adjustment shall be based on the
market value of the difference which has directly affected price comparability as
demonstrated by consistent and distinct differences in functions and prices of the seller
for the different levels of trade in the domestic market of the country of export or
origin;
5. Transport, insurance, handling, local and ancillary costs directly
incurred for conveying the allegedly dumped product from the premises of the foreign
exporter to the independent buyer, where such costs are included in the prices charged;
6. Packing costs directly related to the product concerned;
7. Cost of credit directly granted for the sales under consideration;
8. After sales cost such as warranties, guaranties, technical
assistance, and services as provided for by law and/ or in the sales contract;
9. Commissions paid in respect of the sales under consideration; and
10. Currency
conversions as provided in letter (i) of this section.
(c) If the normal value of a product cannot be determined because of the following
conditions in the domestic market of the country of export or origin:
1 . absence of sales of the allegedly dumped product in the ordinary course of domestic
trade; or
2. particular market situation makes domestic sales unsuitable for proper comparison
(price does not reflect a fair price in normal market conditions e.g. consignment or
monopsony); or
3. volume of domestic sales is less than 5% of export sales to the Philippines. A lower
ratio of domestic sales to Philippine imports may be acceptable if it is of sufficient
magnitude to provide for a proper comparison. The volume sold to the domestic and export
markets will be assessed over a reasonable period e.g. one year in order to avoid
distortions such as seasonal fluctuations.
then, the Secretary or Commission, may determine that the normal value shall be either:
(i) the comparable price of the like product when exported to an
appropriate third country provided that this price is representative; or
(ii) the constructed value or the cost of production in the country of
origin plus a reasonable amount for administrative, selling and general costs and for
profits.
(d) In determining whether a third country is appropriate for
determining the normal value, the following criteria, among others, may be considered:
1 . volume of trade from the country of export to the selected third
country is similar to the volume of trade from the country of export to the Philippines;
and
2. nature of trade of the like product between the country of export
and the selected third country is similar to the nature of trade between the country of
export and the Philippines.
(e) Sales of the allegedly dumped product in the domestic market of the
country of export or origin, or sales to a third country, at prices below per unit (fixed
and variable) costs of production plus administrative, selling and general costs may be
treated as not being within the ordinary course of trade by reason of price and may be
disregarded in determining normal value only if it is determined that such sales are made
within one (1) year and in no case less than six (6), months in substantial quantities and
are at prices which do not provide for the recovery of all costs within a reasonable time
period. If prices which are below per unit of costs at the time of sale are above weighted
average per unit costs for the period of investigation, such prices shall be considered to
provide for recovery of costs within a reasonable time period. Sales below per unit cost
are made in substantial quantities when the weighted average selling price of the
transaction under consideration for the determination of normal value is below the
weighted average per unit costs, or that the volume of sales below per unit costs
represent not less than 20 percent (20%) of the volume sold in transactions under
consideration.
Examples of sales which may be considered as being outside the ordinary
course of trade are sales or transactions involving off-quality merchandise or merchandise
produced according to unusual product specifications, merchandise sold at irregular prices
or with abnormally high profits, merchandise sold pursuant to unusual terms of sale, or
merchandise sold to an affiliated party at a non-arms length transaction price.
(f) If the normal value is based on the cost of
production in the country of origin, costs shall be calculated based on records kept by
the foreign exporter or producer provided that these are in accordance with the generally
accepted accounting principles of the country of export or origin and reasonably reflect
the costs associated with the production and sale of the allegedly dumped product. The
amounts for administrative, selling and general costs and for profits shall be based on
actual data pertaining to production and sales in the ordinary course of trade of the
allegedly dumped product by the foreign exporter or producer. When such amounts cannot be
determined on this basis, it shall be based on the actual amounts realized by the foreign
exporter or producer or the weighted average of the actual amounts incurred and realized
through other foreign exporters or producers or by any other reasonable method.
(g) If the normal value is based on the best information available,
including the information supplied in the application, such information shall be checked,
where practicable and with due regard to the time limits of the investigation, by
referring to information from other independent sources which may be available, such as
published price lists, official import statistics and customs returns or information
obtained from other interested parties during the investigation.
(h) In the case of products imported from non-market economy countries,
normal value shall be determined on the basis of the price or constructed value in a
market economy third country, or the export price from such a third country to other
countries or where those are not possible, on any other reasonable basis, including the
price actually paid or payable in the Philippines for the like product, duly adjusted if
necessary to include a reasonable profit margin.
An appropriate market economy third country shall be selected taking
due account of any reliable information available at the time of selection. The applicant
may nominate a comparable market economy for consideration by the Secretary or the
Commission. When selecting a third country, it should have a similar costing structure,
and if possible, be at a similar stage of economic development to the country of export or
origin, particularly in regard to the industry under investigation. In making a
comparison, factors such as gross national product, infrastructure development,
manufacturing process, technical standards and production scales may be taken into
account.
(i) When the comparison between normal value and export price requires
a conversion of currencies, such conversion shall be made using the rate of exchange on
the date of sale as stated in the contract, purchase order, order confirmation or invoice,
whichever establishes the material terms of sale, provided that when a sale of foreign
currency on forward markets is directly linked to the export sale involved, the rate of
exchange in the forward sale shall be used. Fluctuations in exchange rates shall be
ignored and foreign exporters shall be allowed at least sixty (60) days to adjust their
export prices to reflect sustained movements in exchange rates during the period of
investigation.
In the case where products are not imported directly from the country
of origin but are exported from an intermediate country, the price at which the products
are sold from the country of export to the Philippines ' shall be compared with the
comparable price in the country of export. However, comparison may be made with the price
in the country of origin, if the products are merely transshipped through the country of
export or such products are not produced in the country of export or there is no
comparable price for them in the country of export.
(k) In cases where there is no export price or where it appears that
the export price is unreliable because of a relationship or a compensatory
arrangement between the foreign exporter and the importer or a third party, the
export price may be constructed on the basis of the price at which the allegedly dumped
product is first resold to an independent buyer, or if such product is not resold to an
independent buyer, or not resold in the condition as imported, on such reasonable basis as
the Secretary or Commission may determine. In this case, allowances for costs, including
duties and taxes incurred between importation and resale, and for profits, should also be
made. If in these cases, price comparability has been affected, the normal value shall be
established at a level of trade equivalent to the level of trade of the constructed export
price taking into consideration due allowances which affect price comparability. The
necessary information to ensure a fair comparison shall be required from the interested
parties without imposing a reasonable burden of proof on them.
(l) In accordance with the provisions governing fair comparison, the
existence of a dumping margin during the period of investigation shall be established by
the comparison of:
1 . a weighted average normal value with a weighted
average of all comparable export transactions; or
2. corresponding normal value and individual export prices on a
transaction by transaction basis; or
3. the weighted average normal value with the individual export
transactions, in cases where the pattern of export prices differs significantly among
different purchasers, regions or time periods and such differences as explained in writing
cannot be taken into account appropriately by using methods 1 and 2.
(m) If possible, an individual margin of dumping shall be determined
for each known foreign exporter or producer of the dumped product. In cases where the
number of importers, foreign exporters or producers, or the type of the dumped products
involved is so large as to make such determination impracticable, the Secretary and the
Commission may limit their examination either to: i) a reasonable number of interested
parties or products by using statistically valid sampling
techniques on the basis of
information available to them at the time of the selection; or ii) the largest percentage
of volume of exports from the country in question which can be reasonably investigated.
Any selection of importers, foreign exporters, or producers or type of the dumped product
shall preferably be made in consultation with, and with the consent of, the concerned
foreign exporters or producers. However, if a non-selected foreign exporter or producer
submits information, the investigation must extend to that importer, foreign exporter or
producer unless this will prevent the timely completion of the investigation.
Section 12. Determination of Material
Injury or Threat Thereof
(a) The Secretary and the Commission shall determine the presence and
extent of material injury to the domestic industry as a result of the importation of the
dumped products on the basis of positive evidence and shall require an objective
examination of, but shall not be limited to, the following:
1 . The rate of increase and amount of the importation of the dumped
product ' s, either in absolute terms or relative to production or consumption in the
domestic market;
2. The effect of the importation of the dumped products on the prices
in the domestic market for the like product, that is, whether there has been a significant
price undercutting by the dumped products as compared with the price of the like product
in the domestic market, or whether the effect of such dumped products is otherwise to
depress prices to a significant degree or to prevent price increases which otherwise would
have occurred to a significant degree. Price depression shall refer to the extent by which
the domestic producer reduced its selling price in order to compete with the dumped
product, while price suppression shall refer to the extent by which the dumped product
prevented the domestic producer from increasing its selling price to a level that will
allow full recovery of its cost of production; and
3. The effect of the importation of the dumped products on the domestic
producers or the resulting retardation of the establishment of a domestic industry
producing the like product, including an evaluation of all relevant economic factors and
indices having a bearing " on the state of the domestic industry concerned, such as,
but not limited to, actual or potential decline in output, sales, market share, profits,
productivity, return on investments, or utilization of capacity; factors affecting
domestic prices; the magnitude of dumping; and actual and potential negative effects on
cash flow, inventories, employment, wages, growth, and ability to raise capital or
investments. This list is not exhaustive, nor can one or several of these factors
necessarily give decisive guidance.
(b) The extent of injury caused by the importation of the dumped
products on the domestic industry shall be determined by the Secretary and the Commission
upon examination of all relevant evidence. Any known factors other than the importation of
the dumped products which, at the same time.injure the domestic industry, shall also be
examined and the injuries caused by these factors must not be attributed to the dumped
products. The relevant evidences may include, but shall not be limited to, the following:
1 . the volume and value of imported products not sold at dumping
prices;
2. contraction in demand or changes in consumption patterns;
3. trade restrictive practices and competition between foreign and
domestic producers;
4. developments in technology; and
5. export performance and productivity of the domestic industry.
(c) The effect of the importation of the dumped products shall be
assessed in relation to the domestic production of the like product by separate
identification of that production based on such criteria as production processes, sales
and profits. If such is not possible, the effect of the importation of the dumped products
shall be assessed by the examination of the production of the narrowest group or range of
products which includes the like product for which the necessary information is available.
(d) A determination of a threat of material injury shall be based on
facts and not merely on allegations, conjectures or remote possibilities. The change in
circumstances creating a situation in which the dumping will cause injury must be clearly
foreseen and imminent. In making a determination regarding the existence of a threat of
material injury, the following shall be considered collectively,
inter alia,:
1. a significant rate of increase in the importation of the dumped
products into the domestic market indicating the likelihood of substantially increased
importations;
2. sufficient freely disposable, or an imminent, substantial increase
in, production capacity of the foreign exporter indicating the likelihood of substantially
increased dumped exports in the domestic market, taking into account the availability of
other export markets to absorb any additional exports;
3. whether dumped products are entering at prices that will have a
significantly depressing or suppressing effect on domestic prices, and will likely
increase demand for further importation of the dumped products; and
4. inventories of the product being investigated.
(e) Not one of these factors can, by itself, necessarily
give decisive guidance, but the totality of the factors considered must lead to the
conclusion that further dumped exports are imminent and that, unless protective action is
taken, material injury would occur. In cases where injury is threatened by dumped
products, the application of antidumping measures shall be considered and decided with
special care.
Section 13. Voluntary Price
Undertaking
(a) The anti-dumping investigation may be suspended or
terminated without the imposition of provisional measures or anti-dumping duties, upon
receipt of the Commission and acceptance by the affected industry, of a satisfactory
voluntary undertaking executed by the foreign exporter under oath that he will increase
his price or will cease exporting to the Philippines at a dumped price, thereby
eliminating the material injury to the domestic industry producing the like product. Price
increases under such undertakings shall not be higher than necessary to eliminate the
margin of dumping. Parties that offer an undertaking shall be required to provide a
non-confidential version of such undertaking so that it may be made available to
interested parties.
(b) An undertaking to increase prices or cease importations at dumped
prices shall neither be sought nor accepted unless a preliminary affirmative determination
of dumping and injury caused by such dumping has been made. No undertaking of the same
nature shall take effect unless it is approved by the Secretary after a recommendation by
the Commission.
(c) An undertaking to increase prices or cease importations at dumped
prices may not be accepted if its acceptance is impractical, e.g., if the number of actual
or potential foreign exporters is too large or, for other reasons, including reasons of
general policy. The foreign exporter shall be informed of the reason for non-acceptance of
the proposed undertaking and he shall be given an opportunity to submit his comments.
Even if such undertaking is acceptable, the investigation shall
nevertheless be continued and completed by the Commission if the foreign exporter or
producer so desires or upon the advice of the Secretary. In such a case, the undertaking
shall automatically lapse in the case of a negative finding. However, in instances where
the negative determination is due in large part to the existence of a price undertaking,
the Commission may require that the undertaking be maintained for at least two (2) years,
unless the foreign exporter proves to the Commission that the undertaking is no longer
necessary. In the case of an affirmative finding, the undertaking shall continue for only
as long as the need exists, and to the extent necessary, to counteract the dumping, but
not to exceed five (5) years from the date of the affirmative finding.
Should the investigation be discontinued as a result of the acceptance
of an undertaking, this undertaking shall be effective for five (5) years from the date of
the acceptance thereof, unless the foreign exporter proves to the satisfaction of the
Commission that the undertaking is no longer necessary.
(d) Undertakings may be suggested but no foreign exporter shall be
forced to enter into such an undertaking. Failure of the foreign exporter to offer or
accept an invitation for an undertaking shall in no way prejudice the consideration of the
case. However, it may be determined that a threat of injury is more likely to be realized
d the importation of the dumped product continues.
(e) A foreign exporter from whom an undertaking has been accepted may
be requested to provide monthly information to ensure that the conditions of the
undertaking have been fulfilled. The foreign exporter must ensure that future export
prices are not less than the level agreed upon in the undertaking. If at any time the
dumped products are exported at a price lower than that agreed to in the undertaking,
consideration will immediately be given to applying the provisional duty to the shipment,
using the best information available in cases where the investigation which led to the
undertaking has not been concluded. In case of a breach or withdrawal of an undertaking by
any party, a definitive duty shall be imposed in accordance with Section 18 of this IRR;
Provided, that the investigation which led to the undertaking was concluded with a final
affirmative determination and that the foreign exporter concerned has, except where he
himself has withdrawn the undertaking, been given an opportunity to comment. In case of a
violation of an undertaking, definitive duties may be levied on dumped products exported
to the Philippines not more than 90 days before the application of the provisional duty
except to importations made before the violation of the undertaking.
Section 14. Cumulation of Importation
When the importation of products from more than one
country are simultaneously the subject of an anti-dumping investigation, the Secretary or
the Commission may cumulatively assess the effects of such dumped products only if they
are convinced that:
(a) the margin of dumping established in relation to the dumped products from each
country is more than the de minimis as defined in Section 9 of this IRR;
(b) the volume of importation of such dumped products from each country is also not
negligible as defined in Section 9 of this IRR, and
(c) a cumulative assessment of the effects of such dumped products is
warranted in the light of the conditions of competition between the imported products,
and the conditions of competition between the imported products and the like products.
Section 15. Report of the Commission and Submission of
Final Determination to the Secretary.
(a) Before making a final determination, the Commission
shall inform all interested parties in writing of the essential facts under
consideration and the initial findings as contained in the draft report, giving due regard
to the protection of confidential information. Such disclosure shall be made within three
(3) days from the date of completion of the draft report, after which the parties shall be
given five (5) days from the date of receipt of the notice to defend their interests in
writing.
(b) The Commission shall conclude its formal investigation and submit a
report of its findings, whether favorable or not, to the Secretary within one hundred
twenty (1 20) days from receipt of the records of the case. The Commission shall also
furnish the parties concerned with copies of its report.
Section 16. Imposition of the
Anti-Dumping Duty
(a) The Secretary shall, within ten (1 0)'days from
receipt of the affirmative final determination by the Commission, issue a Department Order
imposing an anti-dumping duty on the dumped product, unless he has earlier accepted an
undertaking from the foreign exporter to increase prices or cease importations at dumped
prices. The Department Order shall become executory after the lapse of the period for
reconsideration in case no motion for reconsideration has been filed, and upon a negative
resolution of the motion for reconsideration in case the same has been filed. He shall
furnish the Secretary of Finance with the copy of the Order and request the latter to
direct the Commissioner of Customs to collect the definitive anti-dumping duty, in
addition to any other duties, taxes and charges imposed by law, on such product.
Simultaneous with the issuance of the Department Order, the Secretary
shall furnish copies of the same to the parties concerned.
(b) Upon receipt of the Order from the Secretary of Finance, the
Commissioner of Customs shall order the Collector of Customs concerned to proceed with the
final appraisement of the dumped product.
(c) The Commissioner of Customs shall submit to the Secretary, through
the Secretary of Finance, certified monthly reports on the disposition of the cash bond
and the amounts of the anti-dumping duties collected.
(d) In case a cash bond has been filed, the same shall be applied to
the anti-dumping duty assessed. If the cash bond is in excess of the antidumping duty
assessed, the remainder shall be immediately returned to the importer, including interest
earned, if any: Provided, That no interest shall be payable by the government on the
amount to be returned. If the assessed anti-dumping duty is higher than the cash bond
filed, the difference shall not be collected.
(e) In case of a negative finding by the Commission, the Secretary
shall issue, through the Secretary of Finance, after the lapse of the period for the
petitioner to appeal to the Court of Tax Appeals, an Order for the Commissioner of Customs
to immediately release the cash bond to the importer. All the parties concerned shall also
be duly notified of the dismissal of the case.
Section 17. Period Subject to Anti-Dumping Duty
(a) An anti-dumping duty may be levied retroactively
from the date the cash bond has been imposed and onwards, where a final determination of
injury is made, or in the absence of provisional measures, a threat of injury has led to
actual injury.
(b) Where a determination of threat of injury or material retardation
is made, anti-dumping duties may be imposed only from the date of determination thereof.
(c) Notwithstanding the preceding paragraph, an anti-dumping duty may
be levied on the dumped product which were imported into the country not more than ninety
(90) days prior to the date of application of the cash bond, when the authorities have
determined for the dumped product in question that:
1 . there is a history of dumping which caused injury or that the
importer was, or should have been, aware that the foreign exporter practices dumping and
that such dumping would cause injury; and
2. the injury is caused by the massive importation of the dumped
product within three (3) months from the initiation of the investigation which, in light
of the timing and the volume of the dumped products and other circumstances (such as a
rapid buildup of inventories of the imported product), is likely to seriously undermine
the remedial effect of the definitive anti-dumping duty to be applied: Provided, That the
importers concerned have been given an opportunity to comment.
In determining whether the importation of the dumped product is
massive, the Commission shall examine:
1. The volume and value of the dumped products;
2. Seasonal trends; and
3. The share in the domestic market accounted for by the dumped
products
(d) No duties shall be levied retroactively pursuant to this Section on
dumped products entered for consumption prior to the date of the initiation of the
investigation.
Section 18. Application of the Anti-Dumping Duty
(a) The amount of the anti-dumping duty shall not exceed
the margin of dumping as established by a fair comparison of the normal value and the
export price for the dumped product as established under Section 1 1. However, the
anti-dumping duty may be less than the margin if such lesser duty will be adequate to
remove the injury to the domestic industry. In determining such lesser duty, the Secretary
or the Commission may also consider, among others, the effect of imposing the full margin
of dumping on the welfare of consumers and/or the general public, and other related local
industries.
(b) Even when all the requirements for the imposition of an
anti-dumping duty have been fulfilled, the Commission may or may not impose the definitive
anti-dumping duty or may suspend its actual imposition. in deciding among the foregoing
options, the Commission may consider the following factors, among others: 1) if the
imposition of an antidumping duty will result in a political or economic crisis; or 2) if
such imposition will cause a severe shortage of the like product in the domestic market.
The Commission shall only exercise said prerogative after giving the Secretary and all
known interested parties the opportunity to present their views.
(c) The anti-dumping duty shall be collected, in the appropriate amounts and on a
non-discriminatory basis, on imports of like products from all sources found to be dumped
and causing injury, except on those imports from sources from which price undertakings
have been accepted. The specific supplier of the like product concerned shall be named. If
several suppliers from the same country are involved and it is impractical to name all
these suppliers, the supplying country concerned may be named. If several suppliers from
more than one country are involved, all the suppliers involved may be named, or if this is
impractical, all the supplying countries may be named.
(d) Any anti-dumping duty applied to non-selected foreign exporters or producers shall
not exceed:
1 . the weighted average dumping margin established with respect to the selected
foreign exporter or producer; or
2. the difference between the weighted average normal value of the
selected foreign exporters or producers and the export prices of non-selected foreign
exporters or producers, where the liability for payment of anti-dumping duties is
calculated on the basis of a prospective normal value:
Provided, That any zero margin, de minimis margin, and margin
established using the best information available are disregarded.
Individual duties or
normal values shall be applied to dumped products imported from any non-selected foreign
exporter or producer who has provided the necessary information during the investigation.
(e) Foreign exporters who did not make themselves known to the
Secretary and the Commission or those who did not cooperate sufficiently during the
investigation, as well as new foreign exporters, shall be assessed a residual duty or an
"all others rate" based on the best information available. The residual duty
will cover future importations of the dumped products originating from the same country of
export.
(f) The anti-dumping duty shall be paid either through cash or
cashier's/manager's check. All such monies collected shall be deposited by the
Commissioner of Customs in a special fund, to be known as the Trade Remedies Fund, created
for that purpose.
(g) New foreign exporters who have not exported the dumped product to
the Philippines during the POI may request for an accelerated review provided they are not
related to any foreign exporter who is subject to the anti-dumping duty. The application
must be submitted to the Commission in writing and must contain:
1. a description of the foreign exporter's product; and
2. the basis of the request.
No anti-dumping duty shall be imposed during the review. A provisional
duty may be required to ensure that, in the case of an affirmative finding, the
anti-dumping duty can be levied retroactively up to the date of the initiation of the
review.
(h) When the domestic industry has been defined as referring to
producers in a certain area as provided under Section 3.d.4 of this IRR, an
anti-dumping duty shall be levied only on the dumped products consigned for final consumption to that
area.
Section 19. Duration and Review of the
Anti-Dumping Duty
(a) As a general rule, the imposition of an anti-dumping duty shall
remain in force only as long as the need exists, and to the extent necessary, to
counteract dumping which is causing or threatening to cause material injury to the
domestic industry or material retardation of the establishment of such an industry.
(b) The duration of the definitive anti-dumping duty shall not exceed five (5) years
from the date of its imposition, or from the date of the most recent review if that review
has covered both dumping and injury, unless the Commission has determined, in a review
initiated before that date on their own initiative or upon a duly substantiated request
made by or in behalf of the domestic industry at least six (6) months prior to the
termination date, that the termination of the anti-dumping duty will likely lead to the
continuation or recurrence of dumping and injury. The anti-dumping duty shall remain in
force pending the outcome of such an expiry review.
An expiry review shall be initiated when there is sufficient evidence
that the expiry of the definitive anti-dumping duty would likely result in a continuation
or recurrence of dumping and injury. Such a likelihood may be indicated, for example, by
evidence of continued dumping and injury or evidence that the removal of injury is partly
or solely due to the existence of the duty or evidence that the circumstances of the
foreign exporters, or market conditions, are such that these would indicate the likelihood
of further injurious dumping.
In carrying out investigations under this paragraph, the foreign
exporters, the representatives of the country of export or origin and the domestic
producers and importers shall be provided with the opportunity to comment on the matters
set out in the review request, and conclusions shall be reached with due account taken of
all relevant and duly documented evidence presented in relation to the question as to
whether the expiry of the definitive anti-dumping duty would be likely, or unlikely, to
lead to the continuation or recurrence of dumping and injury.
The Commission shall cause the publication of a notice of impending
expiry of the effectivity of the anti-dumping duty in two (2) newspapers of general
circulation on the first quarter of the final year of the period of application of the
definitive anti-dumping duty, to give the domestic producers adequate time to lodge a
request for an expiry review.
(c) The Commission may also, motu proprio or upon the direction
of the Secretary, conduct an interim review of the need for the continued imposition of
the anti-dumping duty, taking into consideration the need to protect the existing domestic
industry against dumping. Any interested party with substantial positive information may
also petition the Secretary for an interim review of the continued imposition of the
anti-dumping duty; Provided, that at least one (1) year has elapsed since the imposition
of the anti-dumping duty
An interim review shall be initiated where the request contains
sufficient evidence that the continued imposition of the duty is no longer necessary to
offset dumping and/or that the injury would be unlikely to continue or recur if the duty
was removed or varied, or that the existing duty is not, or is no longer, sufficient to
counteract the dumping which is causing injury.
In carrying out investigations pursuant to this Section,
the Commission may, inter alia, consider whether the circumstances with regard to
dumping and injury have changed significantly, or whether existing measures are achieving
the intended results, in removing the injury previously established. In these respects,
account shall be taken of all relevant and duly documented evidence in the final
determination.
(d) If the Commission determines that the anti-dumping duty is no
longer necessary or warranted, the Secretary shall, upon the recommendation of the
Commission, issue a Department Order immediately terminating the imposition of the
anti-dumping duty. All parties concerned, including the Secretary of Finance and the
Commissioner of Customs, shall be notified accordingly of such termination.
In cases, where the duty is repealed for individual foreign exporters,
but not for the country as a whole, such foreign exporters shall remain subject to the
proceeding and may, automatically be investigated in any subsequent review carried out for
that country pursuant to this Section.
(e) The provisions of this IRR regarding evidence and procedures,
including the conduct of public consultations and public hearings, shall apply to any
review carried out under this Section. Any such review shall be carried out expeditiously
and concluded not later than one hundred fifty (1 50) days from the date of the initiation
of such review.
Section 20. Motion for Reconsideration
(a) No motion for reconsideration shall be allowed on provisional
orders under this IRR, including the imposition of provisional duties by the Secretary, in
consonance with established rules of procedure.
(b) A motion for reconsideration in writing may be filed with the
Secretary within fifteen (1 5) days from receipt of the Department Order imposing the
definitive anti-dumping duty, for one or more of the following reasons affecting the
substantial rights of said party:
1 . Fraud, accident, mistake or excusable negligence which ordinary
prudence could not have guarded against and by reason of which such aggrieved party has
probably been impaired;
2. Newly discovered evidence, which the aggrieved party could not, with
reasonable diligence, have discovered and produced at the public consultations, and which
if presented would probably alter the result; or
3. The final anti-dumping duty imposed is excessive, or the evidence is
insufficient to justify the final order, or the order is contrary to law.
Such motion for reconsideration shall not be accepted without proof of service thereof
to affected parties.
(c) Comments of the affected parties to the motion for reconsideration
may be filed with the Secretary within ten (10) days from receipt thereof.
(d) Upon receipt of the motion for reconsideration and the comments
thereto, the Secretary shall transmit the same within one (1) working day from receipt
thereof to the Commission, which shall resolve the same within ten (10) days. Thereafter,
the Commission shall transmit its report to the Secretary within one (1) working day from
the date of the report.
(e) Within three (3) days from receipt of the report of the Commission,
the Secretary shall issue a formal resolution on the motion for reconsideration based on
the report of the Commission.
(f) No second motion for reconsideration shall be allowed.
Section 21. Judicial Review
(a) Any interested party in an anti-dumping investigation who is
adversely affected by a final ruling in connection with the imposition of an
anti-dumping
duty may file with the Court of Tax Appeals, a petition for the review of such ruling
within thirty (30) days from his receipt of notice of the final ruling.
(b) The filing of such petition for review shall not in any way stop,
suspend, or otherwise hold the imposition or collection, as the case may be, of the
anti-dumping duty on the dumped product. The rules of procedure on petitions for review
filed with the Court of Tax Appeals shall be applied.
Section 22. Public Notice
(a) The Secretary or the Commission shall inform in writing all
interested parties on record and, in addition, give public notice by publishing in two (2)
newspapers of general circulation when:
1. initiating an investigation;
2. concluding or suspending investigation;
3. making any preliminary or final determination whether affirmative or negative;
4. making a decision to accept or to terminate an undertaking; and,
5. terminating a definitive anti-dumping duty.
(b) The public notice shall contain, unless otherwise made available
through a separate report, adequate information on the following matters:
1. sufficient explanation on the matters of fact and law and, the reasons which have
led to the imposition of the measure, or the reasons for the acceptance of the
undertaking, or the reasons for the acceptance or rejection of relevant arguments or
claims made by the interested parties;
2. names of the supplying countries concerned;
3. description of the product;
4. margins of dumping established and the full explanation of the reasons for the
methodology used;
5. considerations relevant to the injury determination; and
6. the main reasons leading to the determination.
Section 23. Report to be Submitted by the Bureau of Customs
The Secretary shall regularly submit to the Commissioner of Customs a
list of imported products susceptible to unfair trade practices. The Commissioner of
Customs is hereby mandated to submit to the Secretary not later than the 15th day of each
month, reports covering importations of said products, including relevant copies of
documents such as but not limited to the following:
(a) Commercial invoices;
(b) Bills of Lading;
(c) Import Entries; and
(d) Pre-shipment reports.
Section 24. Administrative Support
(a) The Departments of Trade and Industry (DTI) and of Agriculture (DA)
and the Commission, shall create or designate a special unit within their agencies that
will undertake the functions relative to the disposition of anti-dumping cases.
(b) All anti-dumping duties collected shall be earmarked and deposited
in the Trade Remedies Fund which is created for the strengthening of the capabilities of
these agencies to undertake their responsibilities.
(c) The portion of the Trade Remedies Fund representing anti-dumping
duties collected on dumped non-agricultural products shall be shared equally by the
DTI
and Commission, while the portion of the Fund presenting collections on dumped
agricultural products shall be shared equally by the DA and the Commission. However, all
expenses incurred by the Bureau of Customs in the submission of the documents required in
Section 23 of this IRR shall be reimbursed before the respective portions of the Trade
Remedies Fund are allocated to the DTI, DA, and the Commission.
(d) The Departments of Finance and Budget and Management, and the
Bureaus of Customs and Treasury, together with the DTI, DA, and the Commission, shall
jointly promulgate the procedures for the creation, management and utilization of the
Trade Remedies Fund.
Section 25. Penalty Clause
(a) Complaints against all erring government officials under this
Section shall be filed with the Office of the Ombudsman.
(b) Failure of the concerned government officials herein mentioned to
prosecute, investigate, and initiate necessary action against the foreign exporter as
provided for in RA 8752 and this IRR, without justifiable cause, shall be a ground for
dismissal from office, in addition to the sanctions provided in the Revised Penal Code and
the Anti-Graft and Corrupt Practices Act (RA 3019), and other laws.
(c) Failure of the erring officials of the Bureau of Customs to collect
the provisional or definitive anti-dumping duty pursuant to the Department Order of the
Secretary and the directive of the Secretary of Finance authorizing its collection shall
constitute prima facie evidence of dereliction of duty which shall be punishable by
removal from office.
Failure of the erring Customs officials to comply with the submission
of the reports and documents required under Section 23, without justifiable reason, shall
hold these officials liable. They shall be punished with a fine equivalent to six (6)
months' salary or suspension for one (1) year.
(d) The importer's license or charter to do business shall be revoked
for those found guilty of dumping. Further, its officers shall be disqualified from
holding official positions in corporations of other business entities in the Philippines.
A fine equal to twice the definitive anti-dumping duty shall likewise
be imposed.
Section 26. Transitory Provisions
The procedural provisions of RA 8752 shall be applied to investigations
initiated prior to its effectivity of 4 September 1999.
Section 27. Repealing Clause
All rules and regulations, ordinances, executive or administrative
orders and such other presidential issuances related to dumping which are inconsistent
with any of the provisions of RA 8752 and this IRR are hereby repealed, amended or
otherwise modified accordingly.
Section 28. Effectivity
This Order shall take effect seven (7) days from publication in two (2)
newspapers of general circulation.
Section 29. Separability Clause.
If any of the provisions of this IRR is declared invalid by a competent
court, the remainder of this Act or any provision not affected by such declaration of
invalidity shall remain in force and effect.
(SGD.) LILIA R. BAUTISTA
(SGD.) EDGARDO J. ANGARA
Acting Secretary, Department of Trade & Industry
Secretary, Department of Agriculture
(SGD.) JOSE TRINIDAD PARDO
Secretary, Department of Finance
(SGD.) EMMANUEL T. VELASCO
(SGD.)
RENATO A. AMPIL
Chairman, Tariff Commission
Acting Commissioner, Bureau of Customs

ANNEX A - OTHER AGRICULTURAL PRODUCTS NOT FALLING UNDER
CHAPTERS 1 TO 24 OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES
HS Code
or
Heading |
Product Description |
2905.43 Mannitol
2905.44 D glucitol (sorbitol)
33.01 Essential
oils including concretes and absolutes; and similar oils
35.01 Casein,
caseinates and other casein derivatives; casein glues
35.02 Albumins,
albuminates and other albumin derivatives
35.03 Gelatin
and gelatin derivatives
35.04 Peptones
and their derivatives
35.05 Dextrins
and other modified starches
3809.10 Finishing agents, dye
carriers to accelerate the dyeing
or fixing of dyestuffs and other products and preparation,
with a basis of amyiaceous substances
3824.60
Sorbitol other than that
of subheading No. 2905.44
41.01 Raw hides
and skins of bovine or equine animals
41.02 Raw skins
of sheep or lambs
41.03 Other raw
hides and skins
43.01 Raw
furskins (including tails, paws, etc.
50.01 Silkworm
cocoons suitable for reeling
50.02 Raw silk
50.03 Silk
waste
51.01 Wool, not
carded or combed
51.02 Fine or
coarse animal hair, not carded or combed
51.03 Waste of
wool or fine or coarse animal hair
52.01 Cotton,
not carded or combed
52.02 Cotton
waste
52.03 Cotton,
carded or combed
53.01 Flax, raw
or processed but not spun
53.02
True hemp, raw or processed but not spun

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