Article VI of the 1994 GATT agreement addressed general provisions on the practice of dumping and the basic elements that must be available for the member State to use the anti-dumping procedure to protect its national industry from injury or threat of injury caused by dumping. While the agreement on Anti-Dumping addressed the detailed provisions in both procedural and substantive terms, which set out how to conduct an investigation, the rights and duties of the parties involved in the verification, as well as ensuring the objectivity of the investigative authority as a neutral party in meeting the objectives of the investigations. Furthermore, the agreement on Anti-Dumping addressed the definition of dumping, the definition of domestic industry, how to determine the injury or threat of injury, and link between Injury and dumped imports. Under this agreement, the member states​ of the organization may impose anti-dumping measures against its dumped imports in the event of the fulfillment of the conditions and elements provided for in the Anti-Dumping agreement.

 

The practice of dumping is the practice of price discrimination that producers and traders may use in their marketing plans in accordance with the requirements and circumstances of different markets. Price discrimination is not an illegal practice in itself. It is also a marketing method that producers or traders may resort to market their goods by distinguishing between the prices of selling the same product when directed to different markets. Some producers or exporters may resort to foreign countries to practice dumping for a number of reasons, including:

• Disposal a stagnant stock.
• Seasonality of the product such as clothing, school tools, and some electronic devices.
• The local product has a preferential advantage in its domestic market that enables it to lower its export prices from its domestic selling price.
• The local product has a significant production capacity that exceeds the volume of its domestic market consumption.
• The producer or exporter wants to enter new external markets.
  

Although price discrimination between markets is legal per se, WTO member states have agreed in the Anti-Dumping agreement. The importing member states can counter the dumped imports (in which the dumping margin is equal to or greater than 2%) by means of anti-dumping mea​sures (not more than the specified dumping margin).​The measures obtained by the member states in accordance with its obligations to the organization, provided that the member states prove that the dumped imports caused injury or threatened injury to its domestic industry, which produces a product similar to a product imported at dumped prices.

The product is considered to be dumped according to the Anti-Dumping Agreement when it is exported to the importing country market (export price) at a price lower than its selling price in the domestic market of the State of export (regular value) during the investigation period.

The price agreed upon between the importer and the exporter, which is the price indicated in the import bill. The export price is referred to the source factory door and the necessary calculation adjustments are made. The necessary adjustments shall be made to the export price to reach the level of a factory door. The source of all items used in preparing the settlements shall be clarified and supported in a way that is consistent with the terms and conditions of sale (Sales and Sale Conditions) and the source of the information. In case of more than one type or item, information on all types or items must be mentioned, if possible.

In order to calculate the amount of dumping, the normal value must be compared to the export price in a fair manner. Therefore, the differences in the material characteristics and the conditions and circumstances of the sale shall be determined between the concerned product sold locally in the country of export and the concerned product, and when considering the existence of a difference, the following must be taken into consideration:

• Compare prices to the same types of products and at the same commercial level.
• Estimate all cost differences affecting the comparison of local sales and export sales prices.
• If it is assumed that there are significant differences in physical characteristics between the product in question and the products sold in the domestic market of the exporting State, these differences are best estimated as cost differences.

The calculation of the dumping margin is to determine the amount of dumping first, which is equivalent to the difference (after making the necessary adjustments) between the export price of the product being investigated and the normal value of the product in the source country.

• Amount of Dumping = normal value - export price.
  Example: Amount of Dumping = 85 – 80 = 5 .
• Dumping Margin = (dumping/export price) X 100.
  Example: Dumping Margin = (5 ÷ 80) X 100 = 6.25% more than de minimis (2%).
• Dumping Duty (applied in customs) = (amount of dumping/export price at *CIF level)= 5 ÷ 90 =5.55%.
  *CIF: The goods cost including insurance and ocean fre​​​​ight up to the buyers port.
  

In case there are multiple sources of imports from two different exporting products in a country, a single dumping margin is calculated for each cooperative source product separately and then a uniform margin is made for each country to be imposed on other non-cooperative companies.

If there are multiple varieties of the product in question, a weighted average of the dumping margins is calculated, resulting in a single dumping margin on all product items, noting that all the accounts made are provided to this margin.

 

 

Physical injury will be achieved when the investigating authority ensures that the following points are in place:

1. Absolute and relative increase in imports:
   The evolution of dumped imports during the previous period is studied from the date of the investigation and usually the earliest four years prior to the date on which the investigation appeared to consider an absolute increase in imports. The evolution of imports is also studied in relation to the evolution of production or consumption during the same years to consider the relative increase in imports.
   

   Statement	Year 1	Year 2	Year 3	Year 4 (investigation period)
   Volume of imports from product complained of	8000	9500	10200	20000
   Value of imports from product complained of	960000	1168500	1193400	2240000
   GCC production	17230	18100	17500	9230
   Import to production ratio	46%	52%	58%	216%

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2. The price effects are shown in one of the following images
   
   • Price difference: This means that the sale price of the imported product under investigation is lower than the sale price of the local product is similar when sold in the local market at the same commercial level. (Price Undercutting).
   • Price reduction: which is a reflection of the fact that the imports in question force the sale prices of the domestic product to decrease as a result of their impact on the prices of the product under investigation, called (Price Depression)
   • Preventing domestic prices from increasing: This refers to the fact that in the absence of a natural increase in the sale prices of a similar domestic product, which would have occurred had it not been for the presence of ingrained imports, called the "Price Suppression".
3. Impact of imports on the economic indicators of the industry:
   It includes research on the impact of dumped imports on the relevant domestic industry indicators, through which the following is assessed:
   • Economic factors and indicators that affect the state of the industry: actual and potential decline in sales, profits, production, market share, productivity, return on investment, and energy utilization.
   • o Factors that affect domestic prices are the size of the actual or potential negative dumping margin and adverse effects on cash flow, stock, labor, wages, growth, and ability to increase capital and investment.

The examination of the threat of physical injury ​ is based on facts rather than mere allegations, speculation, or possibility, and the consideration of circumstances that may create a situation in which dumping causes foreseeable and imminent harm, and when determining the existence of physical danger, the authorities should look for factors such as:

• A significant rate of increase in imports into the domestic market of the importing country reveals potential for a significant increase in imports.
• Large quantities available or an imminent increase in the export capacity of foreign exporters, reveals potential for a significant increase in exports.
• Availability of export markets to accommodate additional exports.
• Whether imports are entering into prices would have a negative impact on domestic prices and would increase demand for more imports.
• The size of the stock of the imported product being investigated.

• The Anti-Dumping Convention does not provide provisions that clearly define how a material disability of an emerging industry is determined, and the material disability of an emerging industry is usually interpreted as a situation in which emerging industry-derived imports impede the stability of their business operations in the domestic market of the importing country..
• To demonstrate the existence of a physical disability status for an emerging industry, the industry must have taken positive steps to establish its manufacturing operations by providing evidence of production seriousness, whether by contracting production lines, starting the construction of the plant, the availability of the necessary land and equipment, and the existence of a feasibility study for the project and other evidence and information that can be used to determine the impact of imported imports on the manufacturing and commercial operations of the emerging industry, whether actual or tactical.

The investigating authority shall demonstrate that there is a link between the dumped imports and the injury caused to the domestic industry. The investigating authority is obliged to examine and evaluate other factors that may have caused the injury other than the dumped imports. Other factors contribute to the injury caused to the domestic industry; the investigation should examine and determine these factors and should not attribute the injury caused by other factors to the injury caused by the dumped imports. The anti-dumping agreement does not require that the dumped imports are the sole cause of injury; however, it is sufficient that the dumped imports are one of several factors causing injury or threat of injury. The investigating authority shall consider any other factors known to it other than dumped imports that may cause injury or a threat of injury to the domestic industry, and the injury caused by these other factors should not be attributed to the dumped imports that may be relevant in this regard:

• Volume and prices of imports that are not sold at dumped prices.
• Demand contraction.
• Changes in consumption patterns.
• Restrictive trade methods.
• Competition between foreign and domestic producers.
• Technological development (technical).
• Export performance of the industry.
• Productivity of local industry.

As a result of the above, if the investigating authority finds that the three main pillars that are dumping, injury, and causal link are met, they may impose anti-dumping measures not exceeding the margin of dumping calculated against the dumped imports. ​

The complaint shall be submitted along with an anti-dumping complaint form that meets all the required and supported data and submitted to the investigating authority in the importing country, and the authority​ shall consider whether the complaint meets all the conditions that must be met to accept the complaint.

The anti-dumping investigation shall only initiated when the investigating authority has determined the accuracy and adequacy of the evidences presented in the complaint, and after the investigating authority has determined the representation of the domestic industry to initiate the investigation authority. Where the investigating authority examines the proportion of support or opposition of the producers of the like product in the domestic market to submit a complaint. The investigation authority shall confirm that the domestic industry or his representative filed the complaint. The complaint shall be submitted by the domestic industry after fulfilling the following two conditions: ​

1. The applicants’ production volume shall exceed 50% of the total production volume of producers who expressed their support or objection to the complaint. ​
   
2. The volume of production of the applicants shall not be less than 25% of the total production of a like product by domestic producers in the domestic market. ​
   

The complaint is filed by a producer of the product similar to the imported product, a number of producers, an industry union, or the chamber of commerce on behalf of the domestic industry provided that the applicant represents the producers whose production volume represents the percentage mentioned above. ​

 

Yes, there are several reasons to prevent the investigation from initiating or ending. The investigation cannot be initiated or continued in the following cases: ​

• Lack of a similar product produced by domestic industry.
• The complainant does not represent the domestic industry when filing a complaint or the industry involved in the investigation does not represent a significant proportion of the production of a similar product during the investigation.
• Failure to submit a written and documented complaint to the investigation authority .
• Lack of sufficient evidence of dumping.
• There is insufficient evidence of material injury or threat of harm to the domestic industry as a result of dumped imports.
• Very small dumping margin less than (2%).
• Small import volume less than (<3%).

It is the period starting from the date of announcing ​the initiation of the investigation until the date of issuance of a decision. The imposition of final measures or the termination of the investigation shall be extended for a period of one year and may be extended for a further period of six months based on circumstances determined by the investigative authority.​

The period of investigation of dumping is the period during which the domestic industry claims that it is the subject to dumped​ imports increased and caused injury to them. The investigating authority collects data and information pertaining to that period to ascertain the validity or invalidity of domestic industry claims. This period ranges from Six months to Eighteen ​ months​, usually one year.

The period of injury investigation (injury analysis) is the period required for the analysis of the injury factors, usually from three to five years, including the period of investigation of the dumping. The determination of the period of investigation of the injury depends on the exercise of​ the investigating authority .