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REPUBLIC ACT
NO. 8752
"Anti-Dumping
Act of 1999"
AN
ACT PROVIDING THE RULES FOR THE IMPOSITION OF AN ANTI-DUMPING DUTY,
AMENDING
FOR THE PURPOSE SECTION 301, PART 2, TITLE II, BOOK I OF THE TARIFF AND
CUSTOMS CODE OF THE PHILIPPINES,
AS AMENDED BY REPUBLIC
ACT NO. 7843, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 8752
“THE
ANTI-DUMPING
ACT OF 1999”
AN ACT PROVIDING THE RULES FOR THE IMPOSITION OF AN ANTI-DUMPING DUTY, AMENDING FOR THE PURPOSE SECTION 301, PART 2, TITLE II, BOOK I OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED BY REPUBLIC ACT NO. 7843, AND FOR OTHER PURPOSES.
Section 1. This Act shall be known as the "Anti-Dumping Act of 1999."
Sec. 2. It is hereby declared the policy of the State to protect domestic enterprises against unfair foreign competition and trade practices. Towards this end, substantive and procedural remedies available to domestic enterprises shall be strengthened and made responsive to recent developments in world trade.
Sec. 3. Section 301, Part 2, Title II, Book I of the Tariff and Customs Code of the Philippines, as amended, is hereby further amended to read as follows:
SPECIAL DUTIES
"SEC. 301. Anti-Dumping Duty.-
"(a) Whenever any product, commodity or article of commerce imported into the Philippines at an export price less than its normal value in the ordinary course of trade for the like product, commodity or article destined for consumption in the exporting country 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, the Secretary of Trade and Industry, in the case of non-agricultural product, commodity or article, or the Secretary of Agriculture, in the case of agricultural product, commodity or article (both of whom are hereinafter referred to as the Secretary, as the case may be), after formal investigation and affirmative finding of the Tariff Commission (hereinafter referred to as the Commission), shall cause the imposition of an anti-dumping duty equal to the margin of dumping on such product, commodity or article and on like product, commodity or article thereafter imported to the Philippines under similar circumstances, in addition to ordinary duties, taxes and charges imposed by law on the imported product, commodity or article. 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. Even when all the requirements for the imposition have been fulfilled, the decision on whether or not to impose a definitive anti-dumping duty remains the prerogative of the Commission. It may consider, among others, the effect of imposing an anti-dumping duty on the welfare of consumers and/ or the general public, and other related local industries.chan robles virtual law library
"In the case where products are not imported directly from the country of origin but are exported to the Philippines from an intermediate country, the price at which the products are sold from the country of export to the Philippine shall normally 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 for example, the products are merely transhipped 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.
"(b) Initiation of action. - An anti-dumping investigation may be initiated upon receipt of a written application from any person whether natural or juridical, representing a domestic industry, which shall include evidence of: (a) dumping, (b) injury, and (c) causal link between the dumped imports and the alleged injury. Simple assertion, unsubstantiated by relevant evidence, cannot be considered sufficient to meet the requirements of this paragraph. The application shall contain such information as is reasonably available to the applicant on the following: (1) the identity of the applicant and a description of the volume and the value of the domestic production of the like product of the applicant; (2) a complete description of the alleged dumped product, the name of the country of origin or export under consideration, the identity of each known exporter or foreign producer, and a list of known persons importing the product under consideration; (3) information on the normal value of the product under consideration in the country of origin or export; and (4) information on the evolution of the volume of the alleged dumped imports, the effect of these imports on the price of the like product in the domestic market, and the consequent impact of the imports on the domestic industry.
"Philippine Trade, Agriculture of Finance Attachés and other Consular Officials or Attachés in the concerned exporting member countries are mandated to furnish the applicant pertinent information or documents to support his complaint within a period not exceeding thirty (30) days from receipt of a request.
"The application shall be filed with the Secretary of Trade and Industry in the case of non-agricultural product, commodity or article, or with the Secretary of Agriculture in the case of agricultural product, commodity or article. The Secretary shall require the petitioner to post a surety bond in such reasonable amount as to answer for any and all damages which the importer may sustain by reason of the filing of a frivolous petition. He shall immediately release the surety bond upon making an affirmative preliminary determination.
"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. However, 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.chan robles virtual law library
"In exceptional circumstances, the Philippines may be divided into two 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.
"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 a causal link, to justify the initiation of an investigation.
"Within five (5) working days from receipt of a properly documented application, the Secretary shall examine the accuracy and adequacy of the petition to determine whether there is sufficient evidence to justify the initiation of investigation. If there is no sufficient evidence to justify initiation, the Secretary shall dismiss the petition and properly notify the Secretary of Finance, the Commissioner of Customs, and other parties concerned regarding such dismissal. The Secretary shall extend legal, technical, and other assistance to the concerned domestic producers and their organizations at all stages of the anti-dumping action.
"(c) Notice to the Secretary of Finance. - Upon receipt of the application, the Secretary shall, without delay, notify the Secretary of Finance and furnish him with a complete copy of the application, or information in case the initiation is made on his own motion including its annexes, if any. The Secretary of Finance shall immediately inform the Commissioner of Customs regarding the filing and pendency of the application or information and instruct him to gather and to furnish the Secretary within five (5) days from receipt of the instructions of the Secretary of Finance copies of all import entries and relevant documents covering such allegedly dumped product, commodity or article which entered the Philippine during the last twelve (12) months preceding the date of application. The Commissioner of Customs shall also make such similar additional reports on the number, volume, and value of the importation of the allegedly dumped product, commodity or article to the Secretary every ten (10) days thereafter.
"(d) Notice to Exporting Member-Country. - Upon receipt of a properly documented application and before proceeding to initiate an investigation, the Secretary shall notify the government of the exporting country about the impending anti-dumping investigation. However, the Secretary shall refrain from publicizing the application for the initiation of the investigation before a decision has been made to initiate an investigation.
"(e) Notice to Concerned Parties and Submission of Evidences. - Within two (2) days from initiation of the investigation and after having notified the exporting country, the Secretary shall identify all interested parties, i.e., protestee-importer, exporter and/or foreign producer, notify and require them to submit within thirty (30) days from receipt of such notice evidences and information or reply to the questionnaire to dispute the allegations contained in the application. At this point, the respondent is given the opportunity to present evidences to prove that he is not involved in dumping. He shall furnish them with a copy of the application and its annexes subject to the requirement to protect confidential information. The notice shall be deemed to have been received five (5) days from the date on which it was sent to the respondent or transmitted to the appropriate diplomatic representative of the exporting member, or an official representative of the exporting territory. If the respondent fails to submit his answer, he shall be declared in default, in which case, the Secretary shall make such preliminary determination of the case on the basis of the information available, among others, the facts alleged in the petition and the supporting information and documents supplied by the petitioner.chan robles virtual law library
"(f) Preliminary Determination. - Not later than thirty (30) working days from receipt of the answer of the respondent importer, exporter, foreign producer, exporting member-country, and other interested parties, the Secretary shall, on the basis of the application of the aggrieved party and the answer of the respondent/s and their respective supporting documents or information, make a preliminary determination of the application for the imposition of an anti-dumping duty.
"In
the preliminary determination, the Secretary shall essentially
determine
the following:
"(2) The presence and extent of material injury or threat of injury to the domestic industry producing like product or the material retardation of the establishment of a domestic industry; and
"(3) The causal relationship between the allegedly dumped product, commodity or article and the material injury or threat of material injury to the affected domestic industry or material retardation of the establishment of the domestic industry.
"The
preliminary finding of the Secretary, together with the records of the
case shall, within three (3) days, be transmitted by the Secretary to
the
Commission for its immediate formal investigation. In case his
preliminary
finding is affirmative, the burden of proof is shifted to the
respondent
to rebut the preliminary finding. 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 anti-dumping duty but
not greater than the provisionally estimated margin of dumping in
addition
to any other duties, taxes and charges imposed by law on like articles.
The cash bond shall be deposited with the government depository bank
and
shall be held in trust for the respondent. Moreover, the posting of the
cash bond shall only be required no sooner than sixty (60) days from
the
date of initiation of the investigation. The date of initiation of the
investigation is deemed to be the date the Secretary publishes such
notice
in two (2) newspapers of general circulation. The Secretary shall cause
such publication immediately after a decision to initiate the
investigation
has been made. The provisional anti-dumping duty may only be imposed
for
a four (4) month period which may be extended to six (6) months upon
request
by the exporter/s 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.chan
robles virtual law library
"(h) Investigation of the Commission. - 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 the formal investigation through the publication of such particulars and a concise summary of the petition in two (2) newspapers of general circulation.
"In
the formal investigation, the Commission shall essentially determine
the
following:
"(2) 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;
"(3) The existence of a causal relationship between the allegedly dumped product, commodity or article and the material injury or threat of material injury to the affected domestic industry, or material retardation of the establishment of a domestic industry;
"(4) The anti-dumping duty to be imposed; and
"(5)
The duration of the imposition of the anti-dumping duty.
"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.
"In case any or all of the parties on record fail to submit their answers to questionnaires/position papers within the prescribed period, the Commission shall base its findings on the best available information.chan robles virtual law library
"The Commission shall complete the formal investigation and submit a report of its findings, whether favorable or not, to the Secretary within one hundred twenty (120) days from receipt of the records of the case: Provided, however, That the Commission shall, before a final determination is made, inform all the interested parties in writing of the essential facts under consideration which form the basis for the decision to apply definitive measures. Such disclosure should take place in sufficient time for the parties to defend their interests.
"(i)
Determination
of Material Injury or Threat Thereof. - The presence and extent of
material injury to the domestic industry, as a result of the dumped
imports
shall be determined on the basis of positive evidence and shall require
an objective examination of, but shall not be limited to the following:
"(2) The effect of the dumped imports on the price in the domestic market for like product, commodity or article, that is, whether there has been a significant price undercutting by the dumped imports as compared with the price of like product, commodity or article in the domestic market, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree; and
"(3)
The effect of the dumped imports on the domestic producers or the
resulting
retardation of the establishment of a domestic industry manufacturing
like
product, commodity or article, 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; actual and potential negative effects on cash flow,
inventories,
employment, wages, growth, and ability to raise capital or investments.
"(2) Contraction in demand or changes in consumption pattern;
"(3) Trade restrictive practices and competition between foreign and domestic producers;
"(4) Developments in technology; andchan robles virtual law library
"(5)
Export performance and productivity of the domestic industry.
"(2) Sufficient freely disposable, or an imminent, substantial increase in capacity of the exporter indicating the likelihood of substantially increased dumped exports to the domestic market, taking into account the availability of other export markets to absorb any additional exports;
"(3) Whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices and will likely increase demand for further imports; and
"(4)
Inventories of the product being investigated.
"A price undertaking shall be accepted only after a preliminary affirmative determination of dumping and injury caused by such dumping has been made. No price undertaking shall take effect unless it is approved by the Secretary after a recommendation by the Commission.
"Even if the price undertaking is acceptable, the investigation shall nevertheless be continued and completed by the Commission if the exporter or foreign producer so desires or upon advice of the Secretary. The undertaking shall automatically lapse in case of a negative finding. In case of any affirmative finding, the undertaking shall continue, consistent with the provisions of Article VI of the GATT 1994.chan robles virtual law library
"(k)
Cumulation
of Imports. - When imports of products, commodities or articles
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 imports only if the Secretary and the Commission
are
convinced that:
"(2) The volume of such imports from each country is not negligible, also as defined in Subsection G; and
"(3)
A cumulative assessment of the effects of such imports is warranted in
the light of the conditions of competition between the imported
products,
commodities or articles, and the conditions of competition between the
imported product and the like domestic products, commodities or
articles.
"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 anti-dumping duty assessed, the remainder shall be returned to the importer immediately 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.
"Upon determination of the anti-dumping duty, the Commissioner of Customs shall submit to the Secretary, through the Secretary of Finance, certified reports on the disposition of the cash bond and the amounts of the anti-dumping duties collected.
"In case of a negative finding by the Commission, the Secretary shall issue, after the lapse of the period for the petitioner to appeal to the Court of Tax Appeals, through the Secretary of Finance, an order for the Commissioner of Customs for the immediate release of the cash bond to the importer. In addition, all the parties concerned shall also be properly notified of the dismissal of the case.chan robles virtual law library
"(m)
Period
Subject to Anti-Dumping Duty. - 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. 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 and any cash
bond posted shall be released in an expeditious manner. However, an
anti-dumping
duty may be levied on products 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 determine for the dumped product in question
that:
"(2)
The injury is caused by massive dumped imports of a product in a
relatively
short time which in light of the timing and the volume of the dumped
imports
and other circumstances (such as rapid build-up 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.
"(n) Computation of Anti-Dumping Duty. - If the normal value of an article cannot be determined, the provisions for choosing alternative normal value under Article VI of GATT 1994 shall apply.
"If possible, an individual margin of dumping shall be determined for each known exporter or producer of the article under investigation. In cases where the number of exporters, producers, importers or types of products involved is so large as to make such determination impracticable, the Secretary and the Commission may limit their examination either to a reasonable number of interested parties or products by using samples which are statistically valid on the basis of information available to them at the time of the selection, or to the largest percentage of volume of exports from the country in question which can reasonably be investigated.
"However, if a non-selected exporter or producer submits information, the investigation must extend to that exporter or producer unless this will prevent the timely completion of the investigation.
"New exporters or producers who have not exported to the Philippines during the period of investigation will be subject to an accelerated review. No anti-dumping duties shall be imposed during the review. Cash bonds may be requested to ensure that in case of affirmative findings, anti-dumping duties can be levied retroactively to the date of initiation of the review.chan robles virtual law library
"(o) Duration and Review of the Anti-Dumping Duty. - As a general rule, the imposition of an anti-dumping duty shall remain in force only as long as 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 industry.
"However, the need for the continued imposition of the anti-dumping duty may be reviewed by the Commission when warranted motu proprio, or upon the direction of the Secretary, 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 a review of the continued imposition of the anti-dumping duty: Provided, That a reasonable period of time has elapsed since the imposition of the anti-dumping duty. Interested parties shall have the right to request the Secretary to examine: (1) whether the continued imposition of the anti-dumping duty is necessary to offset dumping; and (2) whether the injury would likely continue or recur if the anti-dumping duty were removed or modified, or both.
"If the Commission determines that the anti-dumping duty is no longer necessary or warranted, the Secretary shall, upon its recommendation, issue a department order immediately terminating the imposition of the anti-dumping duty. All parties concerned shall be notified accordingly of such termination, including the Secretary of Finance and the Commissioner of Customs.
"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 on behalf of the domestic industry within a reasonable time period 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 provisions of this Section regarding evidence and procedures shall apply to any review carried out under this Subsection and any such review should be carried out expeditiously and should be conducted not later than one hundred fifty (150) days from the date of initiation of such review.
"(p) Judicial Review. - 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: Provided, however, That 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 imported product, commodity or article. The rules of procedure of the court on the petition for review filed with the Court of Tax Appeals shall be applied.
"(q)
Public Notices. - The Secretary or the Commission shall inform in
writing
all interested parties on record and, in addition, give public notices
by publishing in two (2) newspapers of general circulation when:
"(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.
"(2) Bill of lading;
"(3) Import entries; and
"(4)
Pre-shipment reports.
"(s)
Definition of Terms. - For purposes of this Act, the following
definitions
shall apply:
"(2) Export price refers to (1) the ex-factory price at the point of sale for export; or (2) the F.O.B. price at the point of shipment. In cases where (1) or (2) cannot be used, then the export price may be constructed based on such reasonable basis as the Secretary or the Commission may determine.chan robles virtual law library
"(3) Normal value refers to a comparable price at the date of sale of the like product, commodity or article in the ordinary course of trade when destined for consumption in the country of export.
"(4) Domestic industry refers to the domestic producers as a whole of the like product or to those of them whose collective output of the product constitutes a major proportion of the total domestic production of that product, except when producers are related to the exporters or importers or are themselves importers of the allegedly dumped product, the term 'domestic industry' may be interpreted as referring to the rest of the producers.
"(5) Dumped import/product refers to any product, commodity or article of commerce introduced into the Philippines at an export price less than its normal value in the ordinary course of trade, for the like product, commodity or article destined for consumption in the exporting country, 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.
"(6) Like product refers to a product which is identical or alike in all respects to the product under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.
"(7)
Non-selected exporter or producer refers to an exporter or producer who
has not been initially chosen as among the selected exporters or
producers
of the product under investigation.
Failure of the concerned officials of the Bureau of Customs to collect the cash bond or definitive dumping duty pursuant to the department order of the Secretary shall constitute prima facie evidence and dereliction of duty which shall be punishable by removal from the office.
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 be imposed.chan robles virtual law library
Sec. 5. Annual Report. - The use of funds under this Act shall be subject to regular audit by the Commission on Audit which shall render an annual report of its findings to Congress. Likewise, the Secretary shall submit an annual report of its operation under this Act to Congress.
Sec. 6. Oversight. - There shall be a Congressional Oversight Committee composed of the Chairmen of the Committee on Trade and Industry of both the Senate and the House of Representatives, and Members from the Committee on Ways and Means as designated in both chambers.
Sec. 7. Rules and Regulations. - An inter-agency committee to be composed of the Secretaries of the Departments of Trade and Industry, Agriculture, and Finance, the Commissioner of the Bureau of Customs and the Chairman of the Tariff Commission shall promulgate all rules and regulations necessary to carry out their respective functions under this Act.
Sec. 8. Repealing Clause. - Section 301, Part 2, Title II, Book I of the Tariff and Customs Code, as amended by Republic Act No. 7843 and all other laws, decrees, 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 this Act are hereby repealed, amended or otherwise modified accordingly.
Sec. 9. Separability Clause. - If any of the provisions of this Act is declared invalid by a competent court, the remainder of this Act or any provisions not affected by such declaration of invalidity shall remain in full force and effect.chan robles virtual law library
Sec. 10. Effectivity Clause. - This Act shall take effect after fifteen (15) days following its publication in at least two (2) newspapers of general circulation.
Approved: August 12, 1999
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