EU Amends Regulation for Antidumping and Anti-Subsidy

The proposal covers targeted amendments to Regulation (EU) 2016/1036 on protection against dumped imports from countries that are not members of the European Union and to Regulation (EU) 2016/1037 on protection against subsidized imports from countries that are not members of the European Union.
For WTO members, the normal value is normally determined on the basis of the domestic prices of the like product or on the basis of a constructed normal value. There are circumstances however in which the domestic prices and costs would not provide a reasonable basis to determine the normal value. This could be the case, for instance, when prices or costs are not the result of free market forces because they are affected by government intervention. In such circumstances, it would be inappropriate to use domestic prices and costs to determine the value at which the like product should be normally sold and a new provision stipulates that the normal value would instead be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks. For this purpose, the sources that may be used would include undistorted international prices, costs, or benchmarks, or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country.
For those countries which are at the date of initiation and not members of the WTO and listed in Annex I of Regulation (EU) 2015/755 of 29 April 2015 on common rules for imports from certain third countries, the normal value will be determined on the basis of the analogue country methodology as provided by Article 2(7) as amended.
The Commission considers also it is essential that the basic anti-subsidy regulation can deploy its full effectiveness. In that respect, experience shows that the actual magnitude of subsidization is not always evident at the lime of initiation. Oftentimes, investigated exporters are found to benefit from subsidies whose existence could not have been reasonably known before carrying out the investigation. Yet. those subsidies clearly provide an unfair benefit the exporters concerned, which allows them to sell at injurious prices to the EU market. It is therefore essential that such subsidies be adequately captured in the final analysis and level of duty imposed.

Date : 09.03.2018