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GAZETTE

SEPTEMBER 1987

against "the illicit commercial

practices" of third countries

in the context of GATT.

Determining the incidence

of Anti-Dumping

The Regulation is the basic

instrument on the protection

against dumped or subsidised

imports from countries outside the

E.C. The preamble places the

Regulation firmly in an international

context, stating that the anti-

dumping rules "are adopted in

accordance

wi th

existing

international

obligations

in

particular those arising from Article

VI of the General Agreement on

Tarrifs and Trade."

In order to proceed to anti-

dumping the Community must

satisfy itself of:

(a) The existence of Dumping;

(b) The existence of an Injury;

(c) The existence of a Community

Interest e.g. serious threat to

a Community

industry,

requiring intervention.

(a) The existence of Dumping

The Regulation, article 2 states:

" A

product

shall

be

considered to have been

dumped if its export price to

the Community is less than

the normal value of the like

product."

A reading of the article indicates

that four matters have to be

established in order to determine

that dumping has taken place: (1)

The determination of normal value;

(2) the determination of export

price; (3) the comparison of normal

value and export price; (4) the

assessment of the dumping

margin. These criteria can often be

measured wi t hout too much

difficulty when dealing wi th

products from say Japan.

However, problems can arise

where products from a non-market

economy,

e.g.

Poland

or

Czechoslovakia are concerned.

(b) The Existence of Injury

Article 4 ssl of the Regulation

states:

"determination of injury shall

be made only if the dumped

or subsidised imports are

through the e f f ec ts of

dumping or subsidisation

causing injury i.e. causing or

threatening to cause material

injury to an established

Community industry or material

retarding the establishment of

such an industry."

In his opinion to the Court in the

Ball Bearings

case [1979] ECR

1212, Advocate General Wannt

stated that " I n j u r y " is an

"economic question not readily

open to judicial review".

(c) The Existence of e

Community Interest

The Commission "Guide to the

European Communities Anti-

dumping and Countervailing

Legislation states at article 12:

"Community interest may

cover a wide range of factors

but the most important are

the interest of consumers and

processors of the imported

product and the need to have

regard to the competitive

situation within the Community

market."

Article 13 of the Regulation

Article 13ssl states:

"anti-dumping or counter-

vailing duties

whether

provisional or definitive shall

be imposed by regulation."

Sub-section 4 (a) stipulates

that

"Anti-dumping and counter-

vailing duties shall be neither

imposed nor increased with

retroactive effect

(writer's

emphasis).

However, ss 4 (b) does empower

the Council in certain circumstances

e.g. where there is a history of

dumping, sporadic dumping, where

"injury which is difficult to repair

is caused by massive imports in a

relatively short time", or "in the

case

of

violation

of

an

undertaking".

Regulation

1761 / 87

has

extended the scope of Article 13

by introducing a new sub-section

10. Paragraph 10 (a) stipulates that

" de f i n i t i ve anti-dumping

duties may be imposed by

way of derogation from the

second

sentence

of

paragraph 4 (a) on products

that are introduced into the

commerce of the Community

after having been assembled

or produced in the Community

(writer's emphasis) provided

that assembly or production

is carried out by a

party

which

is

related or associated

to any

of the manufacturers

whose

exports of the like product are

subject to a definitive anti-

dumping

duty

(writer's

emphasis), the assembly or

production operation was

started

or

substantially

increased

(writer's emphasis)

after the opening of the anti-

dumping investigation, the

value of parts or materials

used in the assembly or

production operation and

originating in the country of

exportation of the product

subject to the anti-dumping

duty exceeds the value of all

other parts or materials used

by at least 50%."

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You can help by giving a donation, supporting our shops (we take

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322