Article VI of the GATT 94 finds the practice, of sale of products of a foreign country at less than the normal value of the products in the exporting country (called dumping) objectionable if the price level causes or threatens material injury to an established industry in the importing country or materially retards the establishment of a domestic industry. Article VI (2) of the Agreement permits a country to offset or prevent dumping by levying on the concerned product antidumping duty not greater in amount than the margin of dumping. The margin of the dumping is the price difference determined in accordance with the Article VI (1).
Under the antidumping agreement, a country is allowed to act in a way that would normally infringe the GATT principles of binding a tariff on MFN basis because antidumping actions means “charging extra import duty” on a particular product from a particular exporting country. Detailed procedures have been laid down on how antidumping cases are to be initiated, how their investigations are to be conducted and the conditions for ensuring that all interested parties get an opportunity to present evidence.
Normally, antidumping measures expire five years after the date of imposition, unless an investigation shows that ending the measures would lead to injury. Anti-dumping investigations are required to end immediately in cases where it is determined if the margin of dumping is insignificantly small (defined as less than 2% of the export price of the product). Likewise, proceedings must end if the volume of dumped imports is negligible. The agreement lays down that the member countries must inform the WTO about all preliminary and final antidumping actions promptly as well as report on investigations twice a year.
This agreement is important both for importers and exporters of furniture. If actionable dumping takes places in the Pakistani market, one can have recourse to the National Tariff Commission for seeking relief. If necessary the Government of Pakistan also can, on the basis of Anti-dumping Agreement, agitate the matter in the dispute settlement system of the WTO. The Ministry of Commerce, Government of Pakistan is the concerned agency.
Under the antidumping agreement, a country is allowed to act in a way that would normally infringe the GATT principles of binding a tariff on MFN basis because antidumping actions means “charging extra import duty” on a particular product from a particular exporting country. Detailed procedures have been laid down on how antidumping cases are to be initiated, how their investigations are to be conducted and the conditions for ensuring that all interested parties get an opportunity to present evidence.
Normally, antidumping measures expire five years after the date of imposition, unless an investigation shows that ending the measures would lead to injury. Anti-dumping investigations are required to end immediately in cases where it is determined if the margin of dumping is insignificantly small (defined as less than 2% of the export price of the product). Likewise, proceedings must end if the volume of dumped imports is negligible. The agreement lays down that the member countries must inform the WTO about all preliminary and final antidumping actions promptly as well as report on investigations twice a year.
This agreement is important both for importers and exporters of furniture. If actionable dumping takes places in the Pakistani market, one can have recourse to the National Tariff Commission for seeking relief. If necessary the Government of Pakistan also can, on the basis of Anti-dumping Agreement, agitate the matter in the dispute settlement system of the WTO. The Ministry of Commerce, Government of Pakistan is the concerned agency.
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