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Antidumping Actions
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U.S. law, dumping exists when imports of a product are sold in the United
States at "less-than-normal value" and such sales are causing
or threaten to cause "material injury" to a competing U.S.
industry. The U.S. Department of Commerce (DOC) determines the less-than-normal
value issue in such disputes, and the U.S. International Trade Commission
(ITC) determines the injury issue. ECS has unparalleled experience in
proceedings at both agencies.
"LESS-THAN-NORMAL VALUE" ANALYSIS
Generally, the DOC determines that an import
is being sold at less-than-normal value if its U.S. price is below the
price of a comparable product sold in the exporters home market,
or if its U.S. price is below its cost of production plus normal profit.
ECS can assist petitioner or respondent clients in all phases of a less-than-normal
value proceeding. Typical cases involve a comparison of the appropriately
adjusted export price to the United States with the adjusted home market
selling price (the products "normal value").
Working on behalf of domestic producers,
ECS can gather the data and perform the analysis needed to support a
less-than-normal value allegation. ECS network of correspondent
firms in more than 50 countries can assist with fact gathering and provide
private local advisory services. As a case proceeds, ECS can review
and critique respondent submissions for compliance with DOC regulations,
accuracy, and appropriate financial analysis.
Acting on behalf of respondent firms, ECS
can assist in all aspects of the defense against an antidumping allegation,
including the preparation of extensive sales and cost data responses
that the DOC may require. ECS can identify and execute the optimal strategy
for gathering the large amounts and diverse types of company data that
would be needed. Working on site, ECS can facilitate the collection
and integration of information commonly required from a company and
its subsidiaries sales, financial, and other databases. ECS has
performed these functions in many countries with diverse accounting
and record-keeping systems. Using its advanced computer systems, ECS
will compile a respondents data in the appropriate format on computer
tape for formal submission to the DOC. Preparing such data frequently
requires judgments about complex cost allocation issues. ECS has the
detailed knowledge of U.S. law, DOC regulations, and accounting required
to address these allocation issues and to work with counsel to identify
the best solutions.
INJURY ANALYSIS
ECS is the leading economic consulting
firm assisting companies and industries in the prosecution or defense
of "injury" cases before the ITC. Using its economic and financial
expertise, ECS can help clients and their legal counsel design and execute
case strategy. Recognizing the particular perspectives of the ITC, ECS
also can help clients gather and prepare the data they need to respond
to producer, importer, or foreign producer questionnaires. Success in
an injury case before the ITC also hinges on the effectiveness of several
types of specialized economic and financial analysis, which determine
the presence of material injury and whether the injury is caused by
the imports under investigation. ECS has developed effective and creative
ways to present these analyses to the ITC. ECS frequently provides expert
testimony before the ITC and responds to Commissioners questions
about the complex economic and financial issues that typically arise.
MANAGEMENT AND CONTROL OF ANTIDUMPING DUTY LIABILITY
ECS can help foreign producers to develop
strategies to maximize their access to the U.S. market after an antidumping
case is filed, in the event the filing of a case is anticipated, or
after an antidumping order has been imposed. Working closely with the
client, ECS uses its in-depth knowledge of U.S. antidumping regulations
and DOC margin-calculation methodologies to construct a computer model
that provides dumping margins and potential duty liabilities for both
current and anticipated sales under various scenarios. ECS also can
provide clients with detailed pricing guidelines for export and domestic
sales that, when implemented, will minimize or eliminate antidumping
duty liabilities. In addition, ECS can analyze a clients sales
and cost information to identify key factors driving the clients
overall antidumping duty liability. Once these key factors are identified,
ECS can recommend specific steps to reduce or eliminate the clients
duty liability. Collectively, ECS margin management and control
programs can significantly reduce a foreign producers vulnerability
to antidumping duty liabilities and restore the producers competitive
position in the U.S. market.
WTO COMPLIANCE
ECS advises and assists countries that
are conforming their international trade regulations to World Trade
Organization (WTO) standards. In this capacity, ECS has used its technical
expertise to help foreign governments apply their antidumping regulations
in a manner consistent with the 1979 General Agreement on Trade in Goods
and Services and the 1994 Antidumping Agreement. ECS has advised and
assisted foreign governments in the following areas: a restatement of
antidumping policies from those embodied in the 1979 Agreement to those
of the 1994 Antidumping Agreement; procedures for gathering information
to be used in antidumping proceedings; auditing and verification practice
and procedures; and technical advice in the interpretation of the 1994
Antidumping Agreement.
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