|ECONOMIC CONSULTING SERVICES, LLC
Economic Consulting Services, LLC
ECS' Transfer Pricing Network:
Non-U.S. Trade Actions
Under the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (more commonly known as the World Trade Organization ("WTO") Antidumping Agreement or 1994 Antidumping Agreement), dumping exists when imports of a product are sold in a given country's market at "less-than-normal value" and such sales are causing or threaten to cause "material injury" to a competing domestic industry. Trade authorities in various non-U.S. jurisdictions determine the less-than-normal value issue and injury issues in such disputes. ECS has unparalleled experience in proceedings of both kinds in various non-U.S. jurisdictions.
"Less-Than-Normal Value" Analysis
Generally, a country's trade authority determines that an import is being sold at less-than-normal value if the price in the relevant domestic market is below the price of a comparable product sold in the exporter’s home market, or if its price in the relevant domestic market is below its cost of production plus normal profit. ECS assists 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 relevant domestic market with the adjusted home market selling price (the product’s "normal value").
Working on behalf of domestic producers, ECS gathers the data and performs 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 reviews and critiques respondent submissions for compliance with the WTO Antidumping Agreement, home-country regulations, accuracy, and appropriate financial analysis.
Acting on behalf of respondent firms, ECS assists in all aspects of the defense against an antidumping allegation, including the preparation of extensive sales and cost data responses that the non-U.S. trade authority may require. ECS identifies and executes the optimal strategy for gathering the large amounts and diverse types of company data that are needed. Working on site, ECS facilitates 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 compiles a respondent’s data in the appropriate format on the required electronic medium for formal submission to the non-U.S. trade authority. Preparing such data frequently requires judgments about complex cost allocation issues. ECS has the detailed knowledge of WTO agreements and precedents, and accounting required to address these allocation issues and to work with counsel to identify the best solutions.
ECS is a leading economic consulting firm assisting companies and industries in the prosecution or defense of "injury" cases before non-U.S. trade authorities. Using its economic and financial expertise, ECS helps clients and their legal counsel design and execute case strategy. ECS also helps clients gather and prepare the data they need to respond to questionnaires. Success in an injury case before non-U.S. trade authorities hinges on the effectiveness of several types of specialized economic and financial analysis, as commonly outlined in the WTO Antidumping Agreement, which determine the presence of material injury, or the threat 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 non-U.S. trade authorities. When required, ECS provides expert testimony before non-U.S. authorities and responds to such authorities' questions about the complex economic and financial issues that arise.
ECS helps foreign producers to develop strategies to maximize their access to non-U.S. markets 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 antidumping regulations and margin-calculation methodologies to construct a financial model that provides dumping margins and potential duty liabilities for both current and anticipated sales under various scenarios. ECS also provides clients with detailed pricing guidelines for export and domestic sales that, when implemented, will minimize or eliminate antidumping duty liabilities. In addition, ECS analyzes a client’s sales and cost information to identify key factors driving the client’s overall antidumping duty liability. Once these key factors are identified, ECS recommends specific steps to reduce or eliminate the client’s duty liability. Collectively, ECS’ margin management and control programs can significantly reduce a foreign producer’s vulnerability to antidumping duty liabilities and facilitate the producer's competitive access to the U.S. market.
COUNTERVAILING DUTY ACTIONS
In general, the DOC imposes a countervailing duty ("CVD") when imports benefiting from a foreign government subsidy cause or threaten to cause material injury to a competing U.S. industry. As with antidumping cases, ECS assists petitioners and respondents in CVD cases, for example, by preparing submissions to the DOC that assess the presence and magnitude of subsidy benefits to particular U.S. imports. The outcome of a CVD dispute often turns on complex financial analysis, particularly with regard to the creditworthiness and cost of capital to foreign firms alleged to have benefited from government subsidies. ECS has the financial and accounting expertise to analyze such issues and prepare effective submissions to the DOC.
ECS advises and assists countries that are conforming their international trade regulations to WTO standards. In this capacity, ECS has used its technical expertise to help foreign governments apply their antidumping regulations in a manner consistent with WTO rules. ECS has advised and assisted foreign governments in the following areas: a restatement of antidumping policies from those embodied in the 1979 General Agreement on Trade in Goods and Services 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.
Relevant ECS Personnel - Non-U.S. Trade Actions:
Click here for a representative list of ECS' extensive experience in antidumping cases.
Click here for a representative list of ECS' extensive experience in countervailing duty cases.