WORLD TRADE G/ADP/N/1/PHL/1
6November 1995
ORGANIZATION(95-3429)
Original: English Committee onAnti-Dumping Practices
NOTIFICATION OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
PHILIPPINES
Thefollowing communication, dated 9October 1995, hasbeenreceived fromthePermanent
Mission ofthePhilippines.
_______________
Inaccordance withArticle 18.5oftheAgreement onImplementation ofArticle VIoftheGATT
1994, Ihavethehonour tonotify Republic ActNo.7843, theAnti-Dumping LawofthePhilippines.G/ADP/N/1/PHL/1
Page2
Republic ofthePhilippines
Congress ofthePhilippines
Metro Manila
Third Regular Session
Begun andheldinMetro Manila, onMonday, thetwenty-fifth dayofJuly,nineteen hundred
andninety-four.
_______________
[Republic ActNo.-7843-]
ANACTRATIONALIZING AND STRENGTHENING THEPROVISIONS ONANTI-DUMPING,
AMENDING FOR THE PURPOSE SECTION 301,PART 2,TITLE II,BOOK IOFTHE
TARIFF AND CUSTOMS CODE OFTHE PHILIPPINES, ASAMENDED.
Beitenacted bytheSenate andHouse ofRepresentatives ofthePhilippines inCongress assembled:
SECTION 1.ThisActshallbeknown asthe"Anti-Dumping Actof1994".
SECTION 2.Itishereby declared thepolicy oftheStatetoprotect Filipino enterprises against
unfair foreign competition andtrade practices. Towards thisend,substantive andprocedures and
remedies available toFilipino enterprises shall bestrengthened andmade responsive torecent
developments inworld trade.
SECTION 3.Section 301,Part2,TitleII,Book 1oftheTariff andCustoms Code ofthe
Philippines, asamended, ishereby further amended toreadasfollows:
Part2.Special Duties
SEC. 301Dumping Duty. -
(a) Whenever theSecretary ofFinance ortheSecretary ofTrade andIndustry (hereinafter
called the"Secretary") receives ananti-dumping petition fromthedomestic industry ortheSecretary
hasreason tobelieve, from anyinvoice orother document ornewspaper, magazine orinformation
ortranslation thereof byanyreputable language translator made available byanygovernment agency
orinterested party, thataspecific kindorclassofforeign article isbeing imported into,orsoldor
islikely tobesoldinthePhilippines, ataprice lessthanitsnormal value, theimportation orsaleof
which might injure, orretard theestablishment of,orislikely toinjure anindustry producing like
articles inthePhilippines, theSecretary shall, within twenty (20)daysfrom receipt ofsuchpetition
orinformation, determine aprima facie caseofdumping. Within five(5)daysfrom suchreceipt,
heshallnotify theprotestee-importer andrequire himtosubmit within ten(10)daysfromsuchnotice
evidence from theproducer oftheimported article dulyauthenticated bythePhilippine consular or
trade office tosupport thenormal value ofsuchproduct. Ifnosuchevidence issubmitted within the
prescribed period, theSecretary shallbasehisdecision ontheavailable pertinent data.
Pending determination ofaprima faciecaseofdumping, thepetitioner maypetition thatthe
release from theBureau ofCustoms ofthealleged dumped product bewithheld. IftheSecretary
determines thatonthefaceofthepetition anddocuments presented, there exists animminent danger
ofinjury toaparticular industry asaresult ofthealleged dumping, heshalldirect theCommissionerG/ADP/N/1/PHL/1
Page3
ofCustoms toholdtherelease ofthequestioned importation, upon filing bythepetitioner ofabond
equal tothealleged margin ofdumping. Thebondshallanswer fordamages which theimporter may
suffer asaresult oftheholding oftherelease ofthequestioned importation, incasetheSecretary finds
thatthere isnoprima faciecase. However, thepetitioner 'sliability fordamages shallnotexceed the
amount ofhisbond. Thisbond shallbecancelled onceaprima facie casehasbeendetermined by
theSecretary. TheSecretary may, motuproprio ,holdtherelease ofthequestioned articles based on
hisinformation thatanimminent danger ofinjury exists toaparticular industry asaresult ofthealleged
dumping.
TheSecretary upon thedetermination ofaprima facie caseofdumping shallsoadvise the
TariffCommission(hereinaftercalledthe"Commission")andshallinstructtheCommissionerofCustoms
toholdtherelease ofthegoods orarticles inquestion, unless theprotestee/importer shallhavefiled
acashbond notlessthantheprovisionally estimated dumping dutyplustheapplicable regular duty
based onthedocumentary evidence submitted withthedumping protest, toanswer forthepayment
ofsuchduties, feesandcharges ifadumping caseisestablished. Iftheprotest isdismissed, thecash
deposit shallbereturned totheimporter within ten(10)daysfrom thefinality oftheorder.
TheSecretary shallhavethediscretion toexclude related parties fromthedomestic industry.
Aproducer andanexporter orimporter arerelated iftheproducer directly orindirectly controls either
theexporter ortheimporter; theexporter ortheimporter directly orindirectly controls theproducer
athird party directly orindirectly controls theproducer andexporter orimporter; ortheproducer
andtheexporter orimporter directly orindirectly control athirdparty andthere isreason tobelieve
thattherelationship causes theproducer toactdifferently thananunrelated producer would act.
(b) TheCommission upon receipt oftheadvice from theSecretary shall conduct an
investigation to:
1. Verify ifthekindorclassofarticle inquestion isbeing imported into,orsoldoris
likely tobesoldinthePhilippines ataprice lessthanitsnormal value;
Thenormal value ofanarticle shallbethecomparable price intheordinary course oftrade
forthelikearticles when destined fordomestic consumption intheexporting country which forpurposes
ofthissection means thecountry ofproduction ormanufacture.
Ifthenormal value ofanarticle cannot bedetermined thefollowing rules shallapply:
Ifthelikearticle isnotbeing soldintheordinary course oftrade inthedomestic market of
theexporting country orifthesaledoesnotallow afaircomparison orifthenormal value isnot
available orunreliable because ofassociation oracompensatory arrangement between theexporter
andtheimporter orathirdparty ortheagency providing thenormal value isState-controlled orjointly
owned bytheState ortheexporting country, orwhere products arenotimported directly from the
country ofproduction then, thenormal value shallbebased onthehigher ofvalues determined from
anyofthefollowing methods, suchasbutnotlimited to,thenormal value oflikearticles inaproxy
country atthesame stage ofdevelopment oftheindustry producing likeproducts, orthecostof
production inthecountry ofproduction ormanufacture orontheestimated landed costinthecountry
ofproduction ormanufacture which isbased onCandFprice ofsucharticles including duties,
surcharges, andtaxes when imported byanimporter inthecountry ofproduction.
2. Ascertain thedifference, ifany,between theexport price andthenormal value ofthe
article.G/ADP/N/1/PHL/1
Page4
3. Determine if,asaresult thereof, adomestic industry producing likearticles inthe
Philippines suffers, orwillbethreatened with, injury, orwillsuffer amaterial retardation ofthe
establishment ofadomestic industry inthePhilippines: Provided, thatindetermining whether the
domesticindustryhassufferedorisbeingthreatenedwithinjury,theCommissionshalldeterminewhether
thewholesale prices atwhich thedomestic articles aresoldarereasonable, taking intoaccount the
costofrawmaterials, labour, overhead, afairreturn oninvestment andtheoverall efficiency ofthe
industry; and/or whether afurther importation ofsucharticles and/or likearticles areclearly foreseen
andimminent considering suchrelevant factors as:
(a) Rateofincrease ofimportation ofsucharticles: Provided, thatinthedetermination
ofpotential injury, there should beatleastthree percent(3%) increase inthevolume ofimportation
ofsucharticles being dumped relative totheaverage monthly volume ofimportation ofsuchlikearticles
fortheimmediately preceding three (3)months; or
(b) Reasonable likelihood ofincreased importations; or
(c) Freely disposable orincreased capacity oftheexporter ofsuchimported articles; or
(d) Import prices which willhaveasignificant depressing orsuppressing effect ondomestic
prices: Provided, further, thatindetermining whether adomestic industry thatwillproduce likearticles
isbeing retarded initsestablishment, theremustbeevidence oftheforthcoming commercial operation
oftheindustry: Provided, finally, thatindetermining injury, thefollowing shallalsobeconsidered:
(i). Whether ornottheimported articles under consideration areidentical oralikeinall
respect toarticles produced bythedomestic industry orsubstantially ofthesame material or
although ofdifferent composition ormaterial serves thesame orsimilar purpose suchasa
substitute asthearticles produced inthePhilippines inquantities sufficient tosupply atleast
tenpercent(10%) oflocal consumption (arrived atbytaking thesumoftheaverage local
production andaverage importation andsubtracting therefrom average exportation) forthe
immediately preceding three (3)months prior tothefiling ofthedumping protest;
(ii) Thevolume ofdumped imports andtheireffects onprices inthedomestic market for
thelikearticles: Provided, thattheCommission shalldetermine theconsequent impact ofthese
imports ondomestic producers byconsidering relevant economic factors andindices suchas:
(a) Fivepercent(5%) decline insalesvolume ordecline insalesprices ofatleast
twopercent(2%) ascompared totheaverage monthly sales fortheimmediately
preceding three (3)months; or
(b) Fivepercent(5%) decline inthevolume ofproduction ascompared tothe
average monthly volume ofproduction fortheimmediately preceding three(3)months;
or
(c) Actual andpotential negative effects onemployment andinventories ofthe
subject articles.
Withinfive(5)daysfromthereceiptoftheadvicefromtheSecretaryofFinance,thecommission
shallidentify allparties concerned andrequire themtosubmit theirrespective memoranda within fifteen
(15)daysfrom notice.
C. TheCommission shallterminate itsinvestigation within ninety (90)daysfromreceipt
oftheaforesaid advice andshall submit itsfindings totheSpecial Committee onAnti-DumpingG/ADP/N/1/PHL/1
Page5
(hereinafter referred toas"Special Committee") within sixty (60)daysfrom thetermination ofits
investigation: Provided, thattheCommission shallgivenotice tointerested parties ofsuchfindings
submitted tothespecial committee.
Incaseanyoralloftheparties onrecord failtosubmit theirrespective memoranda within
theperiod prescribed above, theCommission shallbaseitsfindings onthebestavailable evidence.
TheCommission shallmotuproprio terminate itsinvestigation iftheprovisionally estimated
margin ofdumping islessthantwopercent(2%) ofexport price orthevolume ofdumped imports
isnegligible. Thevolume ofdumped imports isconsidered negligible ifthevolume ofdumped imports
from aparticular county accounts forlessthanthree percent(3%) oftheaverage monthly imports
ofthelikearticles inthePhilippines unless countries which individually account forlessthan
three percent(3%) oftheaverage monthly imports ofthelikearticles inthePhilippines collectively
account formore thanseven percent(7%) oftotalaverage monthly imports ofthatarticle.
D. TheSpecial Committee shall, within fifteen (15)daysafterreceipt ofthereport ofthe
Commission, decide whether thearticle inquestion isbeing imported inviolation ofthissection and
shallgiveduenotice ofsuchdecision. Incasethedecision ofdumping isintheaffirmative, thespecial
committee shalldirect theCommissioner ofCustoms tocause thedumping duty, tobelevied, collected
andpaid, asprescribed inthissection, inaddition toanyother duties, taxes andcharges imposed by
lawonsucharticle, andonthearticles ofthesame specific kindorclasssubsequently imported under
similar circumstances coming from thespecific country.
Intheevent thattheSpecial Committee failstodecide within theperiod prescribed herein,
therecommendation oftheCommission shallbedeemed approved andshallbefinalandexecutory.
E. The"dumping duty" asprovided forinsub-section Dhereof shall beequal tothe
difference between theactual export price andthenormal value ofthearticle asdetermined inthe
dumping decision. Allimportations oflikearticles within onehundred fifty(150) daysimmediately
preceding thefiling oftheprotest arecovered bytheinvestigation. However, incases ofsubsequent
importations ofsamekindorclassofarticle fromthespecific country named intheprotest, thedumping
dutyshallbeequal tothedifference between theactual export priceandthenormal value actually existing
atthetimeofimportation asdetermined bytheCommission fromthesupporting documents submitted
orfrom other reliable sources.
F. Pending investigation andfinaldecision ofthecase,thearticle inquestion, andarticles
ofthesamespecific kindorclasssubsequently imported under similar circumstances, shallbereleased
totheowner, importer, consignee oragent upon thegiving ofacashbond inanamount notlessthan
theprovisionally estimated difference between theactual export price andthenormal value including
theapplicable regular dutyasprescribed inparagraph "a"above.
G. Forpurposes ofthissection, theparties concerned including theprotestant, domestic
producers/manufacturers,importersandtheprotesteeshallbeaffordedconsultationswiththeCommission
andtheSecretary andshallavailofanytechnical information anddatanecessary tosustain itscase.
H. Anyinterested party ofrecord whoisdissatisfied withadecision inadumping protest
mayfileamotion forreconsideration withtheSpecial Committee within thirty (30)daysfromnotice
ofsuchdecision: Provided, thatnomotion forextension oftimetofileamotion forreconsideration
under thissub-section shallbeallowed.
I. Anyaggrieved party mayappeal onlytheamount ofthedumping dutytotheCourt
ofTaxAppeals inthesame manner andwithin thesame period asprovided forbylawinthecaseG/ADP/N/1/PHL/1
Page6
ofappeal from decision oftheCommissioner ofCustoms. Thefindings offactinadumping case
shallbefinalandconclusive.
J. (1) Thearticle, ifithasnotbeenpreviously released under cashbonds asprovided
forinsub-section "F"hereof, shallbereleased afterpayment bytheparty concerned ofthe
corresponding dumping dutyinaddition toanyordinary duties, taxes, andcharges, ifany,
orreexported bytheowner, importer, consignee oragent, athisoption andexpense, upon
thefiling ofacashbond inanamount notlessthantheprovisionally estimated difference
between theactual export priceandthenormal value plustheapplicable regular dutyconditioned
upon presentation oflanding certificate issued byaconsular officer ofthePhilippines atthe
country ofdestination; or
(2) Ifthearticle hasbeenpreviously released under cashbond, asprovided insub-section
"F"hereof, theparty concerned shallberequired topaythecorresponding dumping dutyin
addition toanyordinary duties, taxes, andcharges, ifany.
K. Anyinvestigation tobeconducted bytheCommission under thissection shallinclude
apublic hearing orhearings where theowner, importer, consignee oragent, oftheimported article,
thelocalproducers ormanufacturers ofalikearticle, other parties directly affected, andsuchother
parties asinthejudgement oftheCommission areentitled toappear, shallbegiven anopportunity
tobeheard andtopresent evidence bearing onthesubject matter.
L. Theestablished dumping dutyshallbesubject toadjustment based onwhichever is
higher oftheprevailing normal values asdefined inparagraph b-1. TheCommission shallconduct
quarterly examination and/or verification ofthenormal value todetermine thenecessity ofadjustment.
Should theSpecial Committee, uponreceipt ofthereport oftheCommission, findthatthere isaneed
foranadjustment afterapublic hearing itshalladvise theCommissioner ofCustoms sothathemay
effect thenecessary adjustment indumping duty.
ThePhilippine Finance Attache or,intheabsence thereof, theCommercial Attache or,Trade
Attache or,intheabsence thereof, thediplomatic officer orconsular officer abroad shallbeadvised
bytheSpecial Committee ofanyarticle covered bydumping decision. Theconcerned Attache orthe
Officer shallsubmit quarterly report onnormal values ofsaidarticles totheSpecial Committee.
M. Whenever theCommission, onitsownmotion orupon application ofanyinterested
party, finds afterapublic hearing thatanyoftheconditions which necessitated theimposition ofthe
dumpingdutyhasceasedtoexist,itshallsubmitthenecessaryrecommendationtotheSpecialCommittee
forthediscontinuance ormodification ofsuchdumping dutyandshallsoadvise theCommissioner
ofCustoms. Anydecision ororder made under thissection bytheSpecial Committee shallbepublished
intheOfficial Gazette and/or anewspaper ofgeneral circulation.
N. Anydumping decision promulgated bytheSpecial Committee shallbeeffective for
aperiod offive(5)years from thetimeofitspromulgation except upon therepresentation ofthe
interested party ofthenecessity tocontinue theimplementation ofsaiddecision, inwhich casethe
Special Committee shalladvise theCommission toconduct aninvestigation todetermine whether any
oftheconditions inparagraphs b-1andb-3stillexists. Theaction forextension shallbebrought before
theSpecial Committee atleastsix(6)months before theexpiration oftheperiod.
Thefindings oftheCommission shallbesubmitted totheSpecial Committee atleastthree (3)
months before theexpiration oftheperiod butinnocaseshallitexceed one(1)month afterreceipt
oftheadvice from theSpecial Committee.G/ADP/N/1/PHL/1
Page7
Theperiod ofextension shall, innocase, exceed twenty-four (24)months ortwo(2)years.
O. Forthepurpose ofthissection, theterm:
1. "Comparable price" shallmean thedomestic priceintheexporting country atthesame
leveloftrade which issoldoroffered forsaleatwholesale onthedateofexportation tothe
Philippines:
2. "Cost ofproduction" ofanimported article shallbethesumof:
(a) Thecostofmaterials of,andoffabrication, manipulation orother process
employed inmanufacturing orproducing, likearticles, atatimepreceding thedate
ofshipment oftheparticular article under consideration which would ordinarily permit
themanufacture orproduction oftheparticular article under consideration intheusual
course ofbusiness;
(b) Theactualadministrativesellingandgeneralexpensesatleasttenpercent(10%)
ofproduction costsincurred bytheexporter orproducer ofarticles and/or likearticles;
(c) Thecostofallcontainers andcoverings, andallother costs, charges and
expenses incident toplacing theparticular article under consideration incondition,
packed ready forshipment tothePhilippines butnotlessthanonepercent(1%) of
production costs; and
(d) Areasonable amount forprofit notlessthaneight percent(8%) ofthesum
oftheamounts referred tointhepreceding sub-paragraphs a,b,andc.
3. "Domestic industry" shallrefertothedomestic producers oflikearticles asawhole
ortothose whose collective output oftheproducts constitute asignificant share ofthetotal
domestic production ofthose products intheindustries concerned, except, when producers
arerelated totheexporters orimporters, theterm"domestic industry" maybeinterpreted as
referring totherestoftheproducers;
4. "Export price" ofanimported article shallbetheprice atwhich sucharticle hasbeen
purchased oragreed tobepurchased, priortothetimeofexportation, bytheperson bywhom
orforwhose account thearticle isimported, plus, when notincluded insuchprice:
(a) Thecostofallcontainersandcoveringsandallothercosts,chargesandexpenses
incident toplacing thearticle incondition, packed ready forshipment tothePhilippines;
(b) Theamount ofanyimport duties imposed bythecountry ofexportation which
havenotbeencollected, byreason oftheexportation ofthearticle tothePhilippines;
and
(c) Theamount ofanytaxes imposed inthecountry ofexportation upon the
manufacturer, producer orseller, inrespect tothemanufacture, production, orsale
ofthearticle which havebeenrebated, orwhich havenotbeencollected byreasons
oftheexportation ofthearticles tothePhilippines.
Anyadditional costs, charges andexpenses incident tobringing thearticle from
theplace ofshipment inthecountry ofexportation totheplace ofdelivery inthe
Philippines, andPhilippine customs duties imposed thereon shallnotbeincluded.G/ADP/N/1/PHL/1
Page8
5. "Like article" shallmean aproduct which isidentical oralikeinallrespects tothe
article under consideration oronesubstantially ofthesame material oralthough ofdifferent
composition ormaterial serves thesameorsimilar purpose, suchasasubstitute, asthearticles
produced inthePhilippines;
6. Aspecial committee onanti-dumping ishereby created todecide whether thearticle
inquestion isbeing imported inviolation ofthisAct,andshall becomposed ofthree (3)
members: theSecretary ofFinance, aschairman; theSecretary ofTrade andIndustry; and
either theSecretary ofAgriculture, ifthearticle inquestion isanagricultural product; orthe
Secretary ofLabour, ifthearticle isanon-agricultural product.
P. TheSecretary ofFinance inconsultation withthespecial committee onanti-dumping
andtheCommission shallpromulgate allrulesandregulations necessary tocarry outtheirrespective
functions under thissection.
SEC. 4 Separability Clause. -If,foranyreason, anysection orprovision ofthisAct
ortheapplication ofsuchsection orprovision toanyperson orcircumstance isdeclared unconstitutional
orinvalid, noother section orprovision ofthisActshallbeaffected thereby.
SEC. 5 Repealing Clause. -Section 301,Part2,Title II,Book IoftheTariff and
Customs Code, asamended, Presidential Decree No.1999, Executive Order No.1073, andallother
laws, orders, decrees, issuances, rulesandregulations related todumping which areinconsistent with
thisActarehereby repealed ormodified accordingly.
SEC. 6 ThisActshalltakeeffect two(2)daysafteritspublication intheOfficial Gazette
orinatleasttwo(2)national newspapers ofgeneral circulation whichever comes earlier.
Approved,
EDGARDO J.ANGARA JOSE DEVENECIA. JR.
President oftheSenate SpeakeroftheHouseofRepresentatives
ThisActwhich originated intheHouse ofRepresentatives wasfinally passed bytheHouse
ofRepresentatives andtheSenate on19December 1994.
EDGARDO E.TUMANGAN CAMILO L.SABIO
Secretary oftheSenate Secretary General
House ofRepresentatives
Approved: 21December 1994
FIDEL V.RAMOS
President ofthePhilippines