Home / Knowledge / News / Textiles / US changes valuing methodology in antidumping disputes
US changes valuing methodology in antidumping disputes
28
Aug '13
The US Department of Commerce's International Trade Administration has issued a final rule modifying its method of valuing the price of inputs in antidumping duty proceedings involving non-market economy countries. The rule will apply to all AD proceedings or segments of proceedings initiated on or after 3 September 2013.

It generally appears that this change will make it easier for the ITA to calculate higher AD duty rates on goods from NME countries such as mainland China and Vietnam. In AD proceedings involving NME countries, the ITA calculates normal value by valuing the NME producer's factors of production, to the extent possible, using prices from a market economy that is at a comparable level of economic development and is also a significant producer of comparable merchandise.

When an NME producer purchases inputs from market economy suppliers and pays for those purchases in a market economy currency, the ITA normally uses the weighted-average price paid by the NME producer for these inputs to value the input in question. When a portion of the input is purchased from a market economy supplier and the remainder from an NME supplier, the ITA will normally use the price paid for the input sourced from market economy supplier to value all of the input provided that the volume of the market economy input as a share of total purchases from all sources exceeds 33 percent.

If that threshold is not met the ITA weight-averages the market economy purchase price and an appropriate surrogate value, using as weights the relative quantities of the input imported and purchased from domestic sources.

The ITA has now decided to increase from 33 percent to 85 percent the share of total purchases of the input (both foreign and domestic) that must be made from market economy suppliers from one or more market economy countries during a particular period of investigation or administrative review in order for the weighted-average purchase price paid to the market economy supplier to be used to value all of the input.

When the 85 percent threshold is not met the ITA will weight-average the market economy purchase price(s) and an appropriate surrogate value using the respective quantities of the input sourced from market economy and NME suppliers. The ITA has also added a requirement that the market economy input at issue actually be produced in one or more market economy countries, not just sold through them, to address concerns that the pricing of an NME-produced input by a market economy supplier (or reseller) can be distorted by NME cost or supply factors.

Several commenters questioned the ITA's decision to raise the 33 percent threshold to 85 percent. One commenter, for example, argued that there does not appear to be a reason for this change when the agency had been using it for years. The ITA responded that, upon review of its past practice, it determined that when a company's purchases from market economy suppliers represent only 33 percent of its total purchases that amount does not constitute a sufficient quantity to be representative of the input prices that the company would pay to source all of its purchases from market economy suppliers.

Must ReadView All

Courtesy: Walmart

Apparel/Garments | On 23rd Mar 2017

Walmart acquires ModCloth

Walmart has acquired the assets and operations of ModCloth, one of...

Textiles | On 23rd Mar 2017

SIMA advises mills to avoid panic buying of cotton

The Southern India Mills' Association (SIMA) is advising mills to...

Apparel/Garments | On 23rd Mar 2017

Tulip Retail, True Fit personalise in-store shopping

Tulip Retail, a mobile application platform built exclusively for...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search