Calculation Of Anti-Dumping Duty

Anti-dumping duty is intended to compensate the gap in prices on the domestic market of the importing country and on the foreign market of the exporting country.

The rate of anti-dumping duty is based on Dumping Margin which takes into account weighted average prices.

Dumping margin (DM):

→ The difference between Normal Value and Export Price (expressed in monetary units). Dumping exists when Normal Value is more than the Export Price.

→ The extent by which Normal Value exceeds Export Price (expressed in percentage)

The basic simplified formula:

(NV – EP)

DM = _______________ х 100 %

EP

Normal Value(NV) – comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country (goods' price in the domestic market).

Export Price(EP) – price payable for the exported product.

Example#2:

A TV set which costs 100$ to make is sold in the country for 200$. The same TV set is exported for 150 $. The TV set is being dumped.

Please, calculate dumping duty for the importing country.

___________________________________________________________________________________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

***

COUNTERVAILING DUTIES are applied in case when the grants are given by government for production of exported goods to reduce their price on the world market. Countervailing duties are imposed to subsidized imports that cause damage to domestic producers as a compensating export subsidy measure.

Export subsidies are stimulation export measures encouraging national enterprises-exporters by extra benefits. Export subsidies as a government support give advantages and privileges to exporters and improve the competitiveness of national products on world markets by lowering the costs. These measures include grants, preferential crediting, the state insurance of export, tax privileges to exporters. Direct export subsidies (banned by international treaties) are provided in the form of grants and subsidies from the budget. The WTO prohibits most subsidies directly linked to the volume of exports.

***

SPECIAL DUTIES are applied

- as a protective measure against imports in quantities and (or) under such terms that cause (threaten) significant harm to national producers; - as a measure against traders-violators of national interests in the sphere of foreign economic activity; - as a measure-response to the discriminatory and (or) the unfriendly actions of other states that restrict the legitimate rights and interests of foreign economic activity subjects (entities) and (or) infringe the interests of Ukraine.

RESUME:

Trade remedies applied additionally as a protection measure against unfair competition: _________________________

__________________________

__________________________

Дата добавления: 2015-11-14