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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 111/3/10/1, EIC 111/3/10/2

14 February 2012

Dear Sirs,

Commercial Information Circular No. 117/2012

US : Final Modification Regarding Calculation of the Weighted Average Dumping Margin and Assessment Rate in Certain Antidumping Duty Proceedings

The US Department of Commerce (DoC) issued in the Federal Register (FR) of 14 February 2012 a final rule modifying its methodology on the calculation of weighted average dumping margins and antidumping (AD) duty assessment rate in certain AD duty proceedings. The FR notice is available at:
http://www.gpo.gov/fdsys/pkg/FR-2012-02-14/pdf/2012-3290.pdf.

BACKGROUND

2.In AD duty proceedings, the DoC determines margins of dumping by comparing normal value with the export price of comparable merchandise. In an original AD investigation, the DoC may determine dumping margins by comparing normal value of individual transactions to the export price of individual transactions (the transaction-to-transaction comparison method) in unusual situations. In the most recent original investigation in which the transaction-to-transaction method was used, the DoC did not grant offsets for non-dumped (i.e., where export prices exceed normal values) comparisons. In a review (i.e., administrative review, new shipper review and expedited AD review), the DoC normally compares the weighted average normal value to export price of individual transactions (the average-to-transaction comparison method), and does not offset any non-dumped comparisons. 
 

3.In response to several World Trade Organisation (WTO) dispute settlement rulings that the US' application of the methodology was inconsistent with its WTO obligations, the DoC issued in the FR of 28 December 2010 a proposal to modify the practice concerned. The trade was informed via Commercial Information Circular No. 614/2010 of 29 December 2010 of the DoC's proposal.

DETAILS

4.After consultations, the Doc is adopting the proposed changes to its methodology. Major aspects of the final rule are as follows:

a. Reviews

  • except where the DoC determines that application of a different comparison method is more appropriate, it will compare monthly weighted average export prices with monthly weighted average normal values, and will grant an offset for all such comparisons where export price exceeds normal value in the calculation of weighted average margin of dumping and AD duty assessment rate; 
     

  • the DoC will determine on a case by case basis whether it is appropriate to use an alternative comparison methodology pursuant to the relevant criteria;
     

  • where the weighted average margin of dumping for the exporter is zero or de minimis, no AD duties will be assessed.

b. Five-Year Sunset Reviews

  • the DoC will modify its practice in five-year sunset reviews, such that when determining whether dumping is likely to continue in the absence of an AD order, it will not rely on weighted average dumping margins that were calculated using the WTO-inconsistent methodology. However, only in the most extraordinary circumstances will the DoC rely on margins other than those calculated and published in prior determinations.

c. Original Investigations

  • if the DoC applies the transaction-to-transaction comparison methodology in a future AD proceeding, it will do so without reference to or reliance on any prior practice with regard to the issue of offsets.

5.The final rule is effective on 16 April 2012 and the modification in methodology will apply to preliminary determinations issued after 16 April 2012. 

ENQUIRIES

6.For enquiries concerning this circular, please contact the undersigned at telephone number 2398 5682.

Yours faithfully,




(Miss Cindy LAU)

for Director-General of Trade and Industry