Regulations of the People's Republic of China on Anti-dumping

Regulations of the People's Republic of China on Anti-dumping

Order of the State Council [2001] No.328

Promulgated on November 26, 2001

Regulations of the People's Republic of China on Anti-dumping have been adopted by the 46th meeting of the standing committee of the State Council on October 31, 2001, which are hereby promulgated and shall come into force as of January 1, 2002.

Prime Minister: Zhu Rongji

Appendix:Regulations of the People's Republic of China on Anti-dumping

Chapter 1 - General Provisions

Article 1. These Regulations are formulated in accordance with the relevant provisions of the Foreign Trade Law of the People's Republic of China for the purpose of maintaining the foreign trade order and fair competition.

Article 2. Where an imported product is dumped into the market of the People''s Republic of China and causes material injury or threat of material injury to an established domestic industry, or causes material obstruction to the establishment of such an industry, an anti-dumping investigation shall be initiated and anti-dumping measures applied in accordance with the provisions of these Regulations.

Chapter II - Dumping and Injury

Article 3. The term"dumping" means that an imported product is introduced, in the ordinary course of trade, into the market of the People''s Republic of China at an export price less than its normal value.
The Ministry of Commerce (hereinafter referred to as"MOFCOM" shall be responsible for the investigation and determination of dumping.

Article 4. The normal value of an imported product shall be determined according to the following methods by distinguishing among differing cases:
1. where there is a comparable price for the like product of the imported product in the ordinary course of trade in the domestic market of the exporting country (region), such comparable price shall be the normal value;
2. where there are no sales of the like product of the imported product in the ordinary course of trade in the domestic market of the exporting country (region), or the price and the quantity of such sales do not permit a fair comparison, the normal value shall be the comparable price of the like product when exported to an appropriate third country (region) or the cost of production of the like product in the country (region) of origin plus a reasonable amount for expenses and for profits.
In cases where a product is not imported directly from the country (region) of origin, its normal value shall be determined in accordance with Item 1 of the preceding paragraph. However, under the circumstances that the product is merely transshipped through the exporting country, or the product is not produced in the exporting country (region), or there is no comparable price for the said product in the exporting country (region), the price of the like product in the country (region) of origin may be taken as the normal value.

Article 5. The export price of an imported product shall be determined according to the following methods by distinguishing among differing cases:
1. the price actually paid or payable for the imported product shall be the export price;
2. in cases where there is no export price for the imported product or the price is unreliable, the export price may be fixed on the basis of the price at which the imported product is first resold to an independent buyer;
however, if the imported product is not resold to an independent buyer, or not resold in the condition as imported, the export price may be determined on the basis of a reasonable price fixed by MOFCOM.

Article 6. The margin of dumping is the amount by which the export price of an imported product is less than its normal value.
A fair and reasonable comparison shall be made between the export price and the normal value of an imported product, with due allowance for factors which affect price comparability.
The margin of dumping shall be established on the basis of a comparison of a weighted average normal value with a weighted average of prices of all comparable export transactions or by a comparison of normal value and export price on a transaction-to-transaction basis.
Where the export prices differ significantly among different purchasers, regions or time periods, and therefore it is difficult to make comparison through the methods prescribed in the preceding paragraph, a comparison may be made between a weighted average normal value with prices of individual export transactions.

Article 7. The term "injury" means material injury or threat of material injury to an established domestic industry or material obstruction of the establishment of such a domestic industry.
MOFCOM shall be responsible for the investigation and determination of injury.
The anti-dumping investigation of injury to a domestic industry involving agricultural products shall be conducted by MOFCOM jointly with the Ministry of Agriculture.

Article 8. The following factors shall be examined in the determination of injury caused by dumping to a domestic industry:
1. whether the volume of dumped imports, including the volume of dumped imports either in absolute terms or relative to the production or consumption of a like domestic product, has been increasing significantly, or the possibility of a significant increase in dumped imports;
2. the effects of dumped imports on prices, including the price undercutting by the dumped imports, or the significant suppressing or depressing effects on the price of a like domestic product, etc.;
3.the consequent impact of the dumped imports on the relevant economic factors and indices of the domestic industry;
4.the production capacity or export capacity of the exporting country (region) or the country (region) of origin, and inventories of the product under investigation;
5.other factors that may cause or have caused injury to a domestic industry.
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