Anti-Dumping techniques by Pakistan Introduction Pakistan has liberalized its trade particularly over the recent past

. Being one of the founding members of GATT (in 1947) and the WTO (in 1995), Pakistan is a natural partner in the new international trade regime. While the liberal trade offers barrier-free access to international markets, it also posses competitive challenges to industries of developing countries. Besides, unhindered and free trade may entail unfair trade practices such as “dumping”. Realizing that Pakistan’s domestic industry may also face similar situations, the Government promulgated a law (the Anti-Dumping Duties Ordinance, 2000), which provides adequate remedy against dumping and its injurious effects on domestic industry. Anti-Dumping Duties Ordinance, 2000 The Anti-Dumping Duties Ordinance, 2000 (the “Ordinance”) gives effect in Pakistan to the WTO Agreement on Antidumping. The Ordinance empowers the National Tariff Commission (the “Commission”) to process an application against alleged dumping of a product and to impose appropriate antidumping duties. When can an Antidumping Duty be Imposed? The antidumping duty can only be imposed if it is established, after due process, that: i) ii) a product has been dumped into Pakistan; and the dumping has caused or threatens to cause material injury to Pakistan’s domestic industry.

NTC investigated the matter and it contained sufficient evidence of dumping of FA 85% and injury to the domestic industry. Domestic price $ 500/MT Export price $ 450/MT $ 500/MT $ 450/MT Dumping margin $ 50/MT (500-450) (500-450) 3 EXAMPLES OF ANTI DUMPING TECHNIQUES ADOPTED BY PAKISTAN: 1. P. exporters from Finland and Germany are exporting FA 85% to Pakistan at dumped prices. b. c. Block-6. price suppression. negative effects on capacity utilization. 30-A. FORMIC ACID: Tufail Chemical Industries Limited. Karachi on behalf of the domestic industry producing Formic Acid 85% (“FA 85%”) on July 30. FA 85% imported from Finland and Germany into Pakistan and the FA 85% produced in Pakistan by the domestic industry are like products. price undercutting.What is Dumping? Dumping occurs when a product is exported at a price lower than the price at which it is sold in the domestic market of exporting country. The investigation revealed that: i. negative effects on employment . . mainly through: a. ii. loss in market share. Progressive Center. e.E.C. Mezzanine Floor. exports of FA 85% by the Finish and German exporters to Pakistan at dumped prices has caused and is causing material injury to the domestic industry producing FA 85%. and iii. d.S.H. 2005 alleged that FA 85% produced in the Republic of Finland (hereinafter referred to as “Finland”) and the Federal Republic of Germany is exported to Pakistan at dumped prices.

e.T. However. negative effects on productivity. Ceramic Tiles The National Tariff Commission initiated an antidumping investigation on March 27. 2006 on exports from Kemira was higher than the definitive antidumping duty imposed on July 07. Gujranwala on behalf of the domestic industry manufacturing tiles was in accordance with Sections 20 and 24 of the Ordinance. increase in inventories. Therefore. . The investigation concerns dumping of tiles. The Applicant identified 219 exporters involved in alleged dumping of Tiles. the Commission upon initiation forwarded a copy of Notice of Initiation directly to all exporters/producers of Tiles from China whose addresses were available. pursuant tothe powers conferred upon it under Section 43 of the Ordinance. the Commission. 2006 the difference will be refunded in terms of section 55(2) of the Ordinance. 2. g.. The Commission had imposed provisional antidumping duty on the investigated product vide official gazette (extra ordinary) dated March 09. Imposition of Provisional Antidumping Duty: In reaching this affirmative preliminary determination. G. In terms of Section 55(2) of the Ordinance and Article10. porcelain/vitrified/granite wall and floor tiles in glazed/unglazed. and i. 2006. The Commission also forwarded the Notice of Initiation to the Embassy of China in Islamabad with a request to forward the same to all exporters/producers of Tiles in China in order to respond the Commission. Importers are informed to submit their requests for refund within a period of 30 days from the date of publication of the Notice of Final Determination in the Newspapers i. This has caused material injury to domestic industry during the POI and provisional measures are necessary to prevent injury being caused during the course of this investigation. has decided to impose provisional antidumping . Road. originating in and/or exported from the People’s Republic of China into Pakistan. 2006. which includes ceramic. 2006 for a period of four months effective from March 09. polished/unpolished finish (“Tiles”). 2006 under Section 23 of the Anti-Dumping Duties Ordinance. 2000 after establishing that the application lodged by Master Tiles and Ceramics Industries Limited. h. if the definitive antidumping duty is lower than the amount of provisionally determined antidumping duty. In terms of Section 27 of the Ordinance.3 of Agreement on Antidumping. the difference shall be refunded by the Commission within forty-five days of the final determination. negative effects on cash flow. Since provisional antidumping duty imposed by the Commission on March 09. decline in profits. by August 05. the Commission is satisfied that the investigated product has been imported into Pakistan at dumped prices. addresses of 35 exporters and 10 producers were available with the Commission.f.

g.3 of Agreement on Antidumping. the difference shall be refunded by the Commission within forty-five days of the final determination. 3. ACRYLIC TOW The Commission received a written application from Dewan Salman Fibre Limited. price suppression. b. and o. d. mainly through1: a. through the Ministry of Foreign Affairs. losses on its operations. alleging that Acrylic Tow produced in the Republic of Uzbekistan is exported to Pakistan at dumped prices). 2004. In terms of Section 55(2) of the Ordinance and Article 10. on behalf of the domestic industry. n. Islamabad. k. negative effect on ability to raise capital. negative effect on domestic sales. if the definitive antidumping duty is lower than the amount of provisionally determined antidumping duty. negative effect on investment and growth l. F 7/4. a domestic producer of Acrylic Tow.2 of Agreement on Antidumping as it contained sufficient evidence of dumping of the investigated product and injury to the domestic industry caused therefrom. c. price depression. on January 31. decline in wages. j. f. 2004. i. the Exporters and the Producer are exporting the investigated product to Pakistan at dumped prices. high magnitude of margin of dumping The Commission had imposed a provisional antidumping duty on the investigated product @ 12. decline in output.duties on Tiles importable from China as given in the following table for a period of four months effective from November 30. low utilization of production capacity. the investigated product and the Acrylic Tow produced in Pakistan by the domestic industry are ‘like products’. dumping of the investigated product has caused and is causing material injury to the domestic industry. and iii. ii. Pakistan. decline in market share. 2004. increase in volume of dumped imports. h. 2006. negative effect on cash flows m. decline in productivity. Their findings were: i. Since . The examination of the application showed that it met the requirements of Section 20 of the Ordinance and Article 5. The Embassy of Uzbekistan in Islamabad was notified on January 31. e. price undercutting.71 percent ad val of C&F price importable from the Exporters and/or the Producer for a period of four months effective from August 13.

provisional antidumping duty imposed by the Commission on August 13. no claim for refund of antidumping duty shall be entertained with respect to the import of the investigated product. 2004 and the definitive antidumping duty imposed on December 10. . 2004 are equal.