relative file path for layout
Skip to main content  Skip to search  Skip to main menu
Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref :EIC 111/3/10/2

1 November 2007

Dear Sirs,

Commercial Information Circular No. 410/2007

US : Antidumping Methodologies in Proceedings involving the Mainland - Market-Oriented Enterprise

The US Department of Commerce (DoC) published a Federal Register (FR) notice on 25 October 2007 to seek further comments regarding the possible granting of market-economy treatment to individual respondents in antidumping (AD) proceedings involving the Mainland. The comments have to be submitted to the DoC by 26 November 2007. A copy (pdf format) of the FR notice is appended to this circular for reference.

DETAILS

  1. In May 2007, the DoC sought public comments on whether and how it should grant market-economy treatment to individual companies in AD proceedings involving the Mainland. Details are set out in CIC No. 215/2007 of 28 May 2007. Having reviewed the comments, the DoC identifies two broad competing concerns. One side asserts that there may be sufficiently market-based prices within the Mainland (a non-market economy (NME)) for use in the calculation of normal value, that the DoC has the legal authority to introduce a test to identify market-oriented enterprises (MOE), and that introducing such a test would recognise the reform efforts that the Mainland has undertaken. The other side argues that the DoC has no legal authority to introduce an MOE test. They also point out that any MOE test that attempts to identify market-based prices within an NME would be very difficult to administer, particularly because the prices within an economy are interconnected. Even if the DoC could identify which companies manage their operations on a market basis, these companies would still operate in a broader NME environment. It would be impossible to account for the numerous distortions in an NME that could affect each input price without a laborious analysis.
     

  2. Noting the complex legal and administrative arguments on each side of the issue, the DoC is now seeking further comments on any potential MOE test. Specifically, the DoC invites comments on the following:

  • whether a legal basis exists for an MOE test;

  • how the DoC could identify an MOE operating within a broader NME environment;

  • to what extent, and under what conditions, the DoC should rely on an MOE's prices and costs; and

  • the extent and conditions under which a finding of an MOE might be limited.

ENQUIRY

  1. For enquiries concerning the content of this circular, please contact the undersigned at 2398 5682.

Yours faithfully,




(Scott MAK)

for Director-General of Trade and Industry