Anti-Dumping Case

This is an anti-dumping protest pursuant to Section 711 of Customs Modernization and Tariff
Act and R.A 8752 also known as “Anti-Dumping Act of 1999”. The article under protest is wheat
flour under the subheading 1101.00.19.
On 17th of August 2014, the ABC Limited Corp. filed an anti-dumping protest against the
importation of Wheat Flour from XYZ Corp of Turkey. The law prevailing at that time was R.A.
8752, otherwise known as the "Anti-Dumping Act of 1999".
The Department of Agriculture after receiving the duly notarized petition conducted a Prima
Facie Determination to identify whether the facts would constitute a dumping case.
The government of Turkey was officially notified by the Department of Agriculture of the anti-
dumping investigation after checking the facts of the protest case of dumping by the Department
of Agriculture during the prima facie investigation. Likewise, the protestant, exporters, foreign
producers, importers and other interested parties were notified of the initiation. Questionnaires
were distributed also to the concerned party.
Determination of Like Product:
Like product are produced by the domestic industry which is identical or alike in all respects to
the article under consideration, or in the absence of such a product, another product which,
although not alike in all respects, has characteristics closely resembling those of the product
under consideration.
With respect to similarity, Tariff Commission stated that the product under investigation are
similar in all aspects, processing and methodology used, and both the same in terms of usage.
Domestic Industry Support:
Support by domestic producers whose collective output constitutes more than 50% of the total
production of the like product produced by the domestic industry; and Support by producers
accounting for at least 25% of the total domestic production of the product alleged to be
dumped.
ABC Limited Corp. is the only manufacturer of the like product in the Philippines.
Determination of Dumping
For the purpose of determining dumping, the period of investigation adopted by the Tariff
Commission covers a four (4) month period from 1 September to 31 December 2014.

Exporter Month Normal Export Price Price Margin of

Value US$/MT Difference Dumping
US$/MT US$ %
XYZ Corp September 440.22 390.68
October 437.57 392.00
November 440.34 390.00
December 439.56 389.68
Volume of Dumped Imports

Imports from XYZ Corp of Turkey

Month Volume of Imports (MT) Volume of Dumped Product (MT)
September 86.34 82.90
October 78.45 67.89
November 89.23 86.34
December 67.34 67.34
TOTAL 321.36 304.47

Determination of Material Injury and Causal Linkages

a. Volume Effect
In the year 2014, volume of imported product from Turkey for the Wheat Flour increased from
867 MT to 1,133 MT in 2015.
b. Price Effects
In terms of price effects, the ABC Limited Corporation continue to compete with the price of
imported Wheat Flour from Turkey. ABC Limited Corporation reduces its price and sold its
mosquito coils at a price equivalent to the price of imported Wheat Flour from Turkey.
Price depression - refers to the extent by which the domestic producer reduces its selling price
in order to compete with the allegedly dumped product.
Price suppression - refers to the extent by which the allegedly dumped product prevents the
domestic producer from increasing the selling price of its own like product to a level that will
allow full recovery of its cost of production.
Price undercutting - is the extent by which the allegedly dumped product is consistently sold at a
price below the domestic selling price of the like product.

Questions:
Answer the following questions comprehensively.
1. Based on the facts given, make a conclusion of the anti-dumping case:

 Are the 4 elements of dumping present in the case? Identify and explain?
 Compute the Price Difference and Margin of Dumping based on the facts given.
 Make a final conclusion of the case using the stages of an anti-dumping investigation:
I. Prima Facie Determination
II. Preliminary Determination
III. Final Determination
2. Can the Dumping Protest be terminated in this case? Yes or No. For what reason?
3. What is/are the best remedies for the exporter from Turkey?
4. Make a simplified summary of the case.