Commercial Information Circulars
24-hour hotline : 23 922 922
e-mail address : enquiry@tid.gov.hk
Ref : EIC 111/3/10/1
3 January 2007
Dear Sirs,
Commercial Information Circular No. 14/2007
US : Modification to Methodology Regarding Calculation of the Weighted-Average
Dumping Margin During an Anti-dumping Investigation
The US Department of Commerce (DoC) announced in the Federal Register (FR) notice of 27 December 2006 a modification to its methodology in anti-dumping (AD) investigations with respect to the calculation of the weighted-average dumping margin. This modification will be applied to all AD investigations pending before the DoC as of 16 January 2007 as well as to all future AD investigations. A copy (pdf format) of the FR notice is appended to this circular for reference.
DETAILS
- The US AD law provides that normally in an AD investigation, the DoC may determine whether the subject merchandise is being sold at less than fair value through one of two options. One option is average-to-average comparison, i.e. to compare a weighted-average normal value with a weighted-average of the export prices or constructed export prices of comparable merchandise. The other option is to compare normal value and export prices or constructed export prices on a transaction-to-transaction basis. The DoC normally uses the average-to-average comparison in an AD investigation.
- When the DoC applies the average-to-average methodology during an investigation, the DoC usually divides the export transactions into groups by model and level of trade (averaging groups). The DoC then compares an average of the export prices or constructed export prices of the transactions within one averaging group to the weighted-average of normal values of such sales. Prior to this modification, when aggregating the results of the averaging groups in order to determine the weighted-average dumping margin, the DoC did not permit the results of averaging groups for which the weighted-average export price or constructed export price exceeds the normal value to offset the results of averaging groups for which the weighted-average export price or constructed export price is less than the weighted-average normal value. However, a recent World Trade Organization (WTO) dispute settlement panel report found that the DoC's application of this methodology is inconsistent with WTO rules. To reflect this WTO ruling, the DoC adopts the modification, under which it will no longer make average-to-average comparisons in investigations without providing offsets for non-dumped comparisons.
ENQUIRIES
- For enquiries concerning the content of this circular, please contact the undersigned at 2398 5403.
Yours faithfully,
(Miss WONG Ying)
for Director-General of Trade and Industry
Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.