European Business Law, the fourth volume in our series, shows how the European authorities simultaneously abolish all restrictions on access to and exercise of economic activities and support the growth of domestic markets, through the harmonization the internal legislation or the enactment of genuinely unified regulations.

European Business Law

The anti-dumping regulation lays down a calculation rule referred to as “lesser duty”. Thus, the provisional anti-dumping duty must not exceed the margin of dumping as provisionally established and must be less than the margin if injury suffered by the Union industry may be removed by a lesser duty (Regulation No 2016/1036, Article 7(2)) . In effect, the duty is limited to the injury margin: the a …

Determining level of duty

The anti-dumping regulation lays down a calculation rule referred to as “lesser duty”. Thus, the provisional anti-dumping duty must not exceed the margin of dumping as provisionally established and must be less than the margin if injury suffered by the Union industry may be removed by a lesser duty (Regulation No 2016/1036, Article 7(2)) . In effect, the duty is limited to the injury margin: the amount necessary to remove the effects of the injurious dumping must be calculated in such a way as to allow the Union industry to cover its costs of production and obtain a profit before tax that could be reasonably achieved by an industry of this type in the sector under normal conditions of competition on the sale of a like product in the Union .

In order to fix the amount of provisional duties, the Commission must therefore establish a level of price or injury margin increased by a reasonable beneficiary margin necessary to remove the injury . It may base itself on a target price calculated on the basis of the weighted average cost of production of the model most sold by the Union industry, plus a reasonable target profit margin. This profit margin is determined taking into account the characteristics of the sector in question. Substantial investments in the past and the necessity for the industry to finance progress in the technology in question will justify a higher margin level . The Commission which is not bound by the profit deemed to be reasonable by the Union industry may take into consideration, when determining the profit margin, the long-term losses recorded by the Union industry and the profit which may be achieved in the absence of dumped imports . The profit achieved before the dumping is often used as a target.

Provisional duties are fixed on the basis of the established injury margin where the export price increase necessary to remove the injury caused by dumping attributable to a specific exporter does not exceed the corresponding dumping margin: Commission Regulation (EC) No 2376/94 of 27 September 1994, imports of color television receivers (Malaysia, China, Korea, Singapore and Thailand), LawLex200900002743JBJ.

Commission Regulation No 1627/2003 of 17 September 2003, imports of sodium cyclamate (People's Republic of China and Indonesia), LawLex200900002634JBJ.

Commission Regulation (EC) No 1251/2003 of 14 July 2003, imports of hollow sections (Turkey), LawLex200900002651JBJ.

Commission Regulation No 1034/91 of 23 April 1991, imports of video tapes in cassettes (the People's Republic of China), LawLex200900002709JBJ. See, also, Commission Regulation No 763/90 of 26 March 1990, imports of tungsten carbide and fused tungsten carbide (the People's Republic of China), LawLex200900002690JBJ: the reasonable profit margin must correspond to the reasonable minimum profit before tax needed to enable a producer to keep a plant running under acceptable operating conditions and give him a return on invested capital somewhat near the rate generally required in the sector in question; Commission Regulation (EC) No 967/2000 of 8 May 2000, imports of hairbrushes (China, Korea, Taiwan, Thailand, Hong-Kong), LawLex200900002873JBJ: the margin may be determined having regard to the necessary long-term investments.

Commission Regulation No 1472/2000 of 6 July 2000, imports of polyester staple fibres originating in India and the Republic of Korea, LawLex200900002858JBJ.

European Business Law

452. Determining level of duty

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Les décisions de justice citées dans ce paragraphe :

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452. Determining level of duty

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise