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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
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Commercial Information Circulars

24-hour hotline : 23 922 922

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

Ref : EIC 111/3/10/1

28 May 2007

Dear Sirs,

Commercial Information Circular No. 215/2007

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 May 2007 to seek public comments on whether it should consider granting market-economy treatment to individual respondents in antidumping duty (AD) proceedings involving the Mainland and how this should be done. Comments must reach the DoC within 30 days, i.e. by 25 June 2007. A copy (pdf format) of the FR notice is appended to this circular for reference.

DETAILS

  1. In AD proceedings involving non-market economies (NMEs) such as the Mainland, for the purpose of determining whether a company's products are being sold at dumped prices in the US, it is the DoC's usual practice to calculate the normal value for allegedly dumped merchandise by valuing the NME producer's factors of production using prices and costs from a surrogate country/countries, instead of using actual prices and costs in the Mainland. This is because the DoC presumes that the presence of government control in various aspects of NMEs renders price comparisons and the calculation of production costs invalid if actual prices and costs are used.
     
  2. Recognising that market mechanisms, albeit constrained, operate in the Mainland's economy, the DoC is considering whether the features and characteristics of the Mainland's present-day economy make it appropriate and possible to treat individual companies as market-oriented, as opposed to government-controlled, in AD cases. That would allow the use of actual prices and costs in calculating the normal value in AD proceedings against Chinese products. Specifically, the DoC is seeking comments on whether it should consider granting market-economy treatment to individual companies in AD proceedings involving the Mainland and, if so, under what conditions individual companies should be granted market-economy treatment and how that treatment would alter the way dumping margins are calculated for such entities.

ENQUIRIES

  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