A Dissertation On Circumvention And Anti-circumvention Of Anti-dumping

With the increasing competition of international economy andinternational trade, circumvention and anti-circumvention become a mater ofcertainty during anti-dumping development. As anti-dumping measuresstrengthen, some exporters imposed by anti-dumping duty tried various ways toreduce or evade duty, which precludes the fulfillment of anti-dumping law. Tosafeguard the effect of anti-dumping law, import countries begin to limit orpunish such circumvention with legislation, that is, take anti-circumventionmeasures to govern the evasion of anti-dumping. Anti-circumvention is the lawrelieving carried out by the import countries against circumvention of foreignexporters.European Union and U.S.A. are the countries that carried out the earliermeasures of anti-circumvention in the world. From the eighties of the 20thcentury, some exporters of Japan or S. Korea, after whose manufactured goodsbeing levied the anti-dumping tax in European Community, transferred to makean investment in European Community to set up the factory or practised thejoint venture. Then they exported the accessories of the products imposed theanti-dumping tax to European Community, and sold the manufactured goodsassembled by the accessories in those factories or joint ventures in EuropeanCommunity. According to the regulation of European Community, the target oflevying tax can only be the manufactured goods, and the accessories ofmanufactured goods which not belonging to the similar products are not withinthe same tariff schedule number either. So European Community is unable tocollect the anti-dumping tax for this kind of accessories. For alleviating theharm to European Community industry, European Community made theanti-circumvention clauses in the anti-dumping regulations NO.1761/87. Thecurrent anti-dumping regulations No.384/96 of EU, is revised constantly on thebasis of regulations No.1761/87. Like European Union, the anti-circumventionclause in U.S.A. was made against evading anti-dumping tax of such countriesas Japan, S. Korea ,etc. in the 1980s. American Congress have legislated aboutanti-circumvention for the first time in . With the appearance and development ofanti-circumvention legislation in European Union and U.S.A, whether includingthe clause of anti-circumvention in the anti-dumping agreement of World TradeOrganization, has become the important topic in Uruguay Round negotiation.The Secretary General of GATT----Dunckel, at that time, once put forwardcomparatively intact content of anti-circumvention in the draft of GATT "anti-dumping agreement " put forward in December of 1991. But because thecontent of anti-circumvention in Dunckel draft has heavy difference fromAmerican delegation, combining with the opposition of such countries as Japan,S. Korea, etc., GATT1994 " anti-dumping agreement " reached finally hadn'tincluded the clause of anti-circumvention. U.S.A. and European Union still usethis means restraint-freely to protect national trade interests. And the content ofanti-circumvention in Dunckel draft has become reference standard that othercountries deal with relevant problems. We can predict, though acknowledgeduniversally rule of anti-circumvention to none at present, unified internationalanti-circumvention rule will be put forward again most probably with thequestion of evading anti-dumping becoming more and more outstanding. For China, more and more cases of anti-dumping in China will causeinevitably circumvention. The anti-dumping legislation and practice in Chinaare not ripe enough, nor insufficient in the practice and research ofanti-circumvention. This doesn't meet the needs of our country's foreign tradeand it's quite unfavorable either. In addition, the enterprises of our countrywhich want to realize "circumvention effectively ", should carry on furtherinvestigation on the foreign measures of anti-circumvention. So, it isundoubtedly beneficial to study the measures of anti-circumvention for ourcountry, and this is original intention of choosing anti-circumvention as mythesis title of Master. This dissertation compares and analyses mainly theanti-circumvention clause of European Union, U.S.A. and Dunckel draft inorder to be helpful to the relevant legislation of China. Meanwhile I have beentrying to put forward to the detailed suggestion about anti-circumvention rule ofour country, and I hope it is beneficial for setting up and perfecting ouranti-circumvention system. Excepting the preface and conclusion, the dissertation is divided into fourchapters. Chapter one introduces basic questions mainly, for example the concept ofcircumvention and anti-circumvention, background and development, etc.Circumvention evolved from the eighties of the 20th century whose essencewas the result that anti-dumping measures were intensive, and it's mainlythrough assembling accessories into the manufactured goods in importingcountries or in the third country for evading the anti-dumping tax.Circumvention has resulted in birth of the measures of anti-circumvention.European Union and U.S.A. are forerunners on the legislation of theanti-circumvention, and their anti-circumvention clauses are the ripest andperfect in the world at present deserving the study and reference of othercountries. Chapter two introduces the concrete regulation about anti-circumvention.There are three legislating systems of anti-circumvention that is more completeand of great more impact in the world. First is the legislation of EuropeanUnion. Second is the legislation of U.S.A. The third is ever existing contentabout anti-circumvention in GATT1994 < anti-dumping agreement > reachedby Uruguay Round MTN ( the anti-circumvention clause in Dunckel draft).Europe and U.S.A. are the forerunners in the legislation of anti-circumvention,while Dunckel draft is a kind of sign acknowledging the legitimacy of theanti-dumping measures. Though GATT1994 " anti-dumping agreement "reached finally hadn't included the clause of anti-circumvention, the content ofanti-circumvention in Dunckel draft has become reference standard that othercountries legislated. Europe and U.S.A. have revised their ownanti-circumvention clause after negotiating in Uruguay Round.