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

Where imports are from a country which is not subject to market economy, the determination of normal value raises difficulties by reason, on the one hand, of the administrated character of domestic prices and, on the other hand, of the non-convertible nature of currency. Any fair comparison is virtually impossible. 
From the 1955 session, the GATT agreements have recognized that the concept of nor …

Principle

Where imports are from a country which is not subject to market economy, the determination of normal value raises difficulties by reason, on the one hand, of the administrated character of domestic prices and, on the other hand, of the non-convertible nature of currency. Any fair comparison is virtually impossible. 

From the 1955 session, the GATT agreements have recognized that the concept of normal value was not adapted where dumping is due to producers exercising their activity in a non-market economy country. As from 1979, the anti-dumping regulation has organized a special system for those countries. Although the number of non-market economy countries has decreased, the principle remains.

Article 2(7) of Regulation No 2016/1036, which sets forth a list of non-market economy countries, distinguishes two categories of countries. For countries such as Albania, Armenia, Azerbaijan, Belarus, Georgia, North Korea, Kirghizstan, Moldova, Mongolia, Tajikistan, Turkmenistan, Uzbekistan, Article 2(7)(a) provides, “normal value shall be determined on the basis of the price or constructed value in a market economy third country, or the price from such a third country to other countries, including the Union, or where those are not possible, on any other reasonable basis, including the price actually paid or payable in the Union for the like product, duly adjusted if necessary, to include a reasonable profit margin”. 

Article 2(7)(b) refers to China, Vietnam, Kazakhstan and any non-market economy country which is a member of the WTO at the date of initiation of the investigation. For those countries, normal value is determined as it is for market economy countries if it is shown “on the basis of properly substantiated claims by one or more producers subject to the investigation” that market economy conditions prevail for this producer or producers in respect of the manufacture and sale of the like product concerned. When this is not the case, the rules set out under subparagraph (a) apply.

The method to determine normal value referred to in Article 2(7)(b) is strictly interpreted. It can be departed from it only where the data required in order to determine normal value are not available or are not reliable: adjustment in order to adapt them as closely as possible to the conditions in the non-market economy country is insufficient . The use of the basis of domestic sales realized by two exporting producers from the same country which have been granted market economy treatment cannot be preferred to the market economy analogue country method . 

Case T-255/01 Changzhou Hailong Electronics & Light Fixtures and Zhejiang Sunlight Group v Council [2003] ECR II-4741, LawLex200900001343JBJ.

Council Regulation (EU) No 1470/2001 of 16 July 2001, imports of integrated electronic compact fluorescent lamps (CFL-i) originating in the People's Republic of China, LawLex200900002609JBJ.

European Business Law

408. Principle

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Les décisions de justice citées dans ce paragraphe :

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408. Principle

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise