Price Adjustment Calculation Of Anti-dumping Investigations Dumping Margin

Dumping margin determination system is the core part of anti-dumping law, asthe key stone, price adjustment system have high complexity with technical, and is anecessary safeguard means to the impartial determination in anti-dumpinginvestigation. However, there are few thesis focus on the issue of dumping margincalculation. In the international anti-dumping practices, USA and EU are the twoentities representing the modern law system and the future developing trend. Giventhis precondition, as a lawyer with more than 10 years' experience in the area, theauthor focus on the price adjustment issue in calculation of dumping margin,discussed the justness and future developing trend of price adjustment system, withinthe frame of WTO anti-dumping agreement, compared the legislation & practice ofUSA and EU, integrated with China's current legislation & practice, proposed themeasure to reform and furnish China's price adjustment system.Dumping is deemed to be a unfair competition behavior, the aim of anti-dumpinglaw is to condemn and resist this unfair competition behavior, adopt the anti-dumpingmeasures and resume the fair competition environment in international trade. Thecomparison between normal value and export price will determinate whether adumping exist and what the dumping margin is, this comparison should certainly beconducted on the base of fairness and rationality.Whether a dumping exist and what the dumping margin is, rely on thecomparison between normal value and export price, the normal value, either domesticprice of exporting country, or the export price to the third country, or the constructedprice, is in different market with the export price (EP), the level of trade differ greatlyin the two markets, we need to do appropriate adjustment on the prices in differentmarket, and put the two price on the same level of trade, so we can do the fair andreasonable comparison.Anti-dumping is not only the gaming between domestic respondent and foreignproducer. The interested party also includes domestic downstream industry. Thedownstream industry may be dependent upon foreign imports, or the levy ofanti-dumping tax makes the domestic producers on a dominant position. Under thesesituations, the regulatory authority should consider the interest of the downstreamindustry. Public interest includes consumer interest and other interest. Priceadjustment is directly relevant to confirming antidumping reasonably and justly andmay be used by the regulatory authority to protect public interest.The justification for price adjustment includes reasonableness and necessity.Reasonableness means that price adjustment founds a just basis to compare thenormal value and export price and make the two values comparable practically anddirectly. Necessity means that if the price adjustment is excluded from the procedureof determining the dumping margin, the dumping margin would be inaccurate, theantidumping law deviated from the right track, the antidumping measures suspiciousof abuse and upsetting the normal order of international trade.Price adjustment is an important part of anti-dumping. WTO and nationalantidumping laws worldwide contain explicit regulations on this. In the practice ofantidumping, price adjustment is dealt with in cases decided by the WTO panel,appealing body, U.S. and EU regulatory authorities. Based on the principles laid downby WTO, the antidumping laws of member states have relevant articles concerningprice adjustment and these are amplified and specified by cases accumulated in longtime practice. To compare and evaluate the regulatory authorities, regulatory systemsand origin of cases of price adjustment of states worldwide, mainly U.S. and EU, is aprerequisite to make specific comments on the price adjustment system.In the conclusion, based on the analysis on the justification and futuredevelopment trend, by comparison research on U.S. and EU antidumping law,contrast past antidumping investigation cases of China, the author summarizesexperience and lessons from which Chinese antidumping law and practice shouldlearn.This essay also examines the development of Chinese price adjustment systemsince the first antidumping case in China in 1997, summarizes the legal structure ofcurrent Chinese price adjustment system, analyzes and sums up the specific measuresthat the Ministry of Commerce of China takes in antidumping investigation.Based on the relevant discussion of foregoing content of this essay, the authorputs forward constructive suggestions on building Chinese price adjustment systemand tries to be of benefit to the construction of Chinese price adjustment system.Under the trend of globalization, China, whose market economy is developing ina very high speed, and as a member of the WTO, to learn lessons from U.S. and EU,whose theory and practice in antidumping is relatively mature, in building its ownantidumping system, and this is also the main purpose of writing this essay.Concerning the very technical system of price adjustment, China can only develop itsown system through integrating with WTO regulations and national regulationsworldwide.