• Prima Facie Determination

 

The DTI-BIS or DA, upon receipt of the properly documented petition, has ten (10) days to examine the accuracy and adequacy of the petition and to determine whether there is sufficient evidence to justify the initiation of an investigation.

The following information are to be provided in a petition for the levy of countervailing duty:

       - identity of the applicant and a description of the volume and the value of his domestic production of the like product;

 

       - a list of all known domestic producers of the like product and, if possible;

       - a description of the volume and value of the domestic production of the like product accounted for by such producers (if the application is made on behalf of the domestic industry);

       

       - a description of the allegedly subsidized product;

     

       - names of the exporting countries, each known exporter or foreign producer, and a list of the importers of the product;

 

      - estimated aggregated or cumulative quantity, the port and the date of arrival, the import entry declaration of the allegedly subsidized product;

 

       - the nature, extent and estimated amount of the alleged subsidy;

 

       - number of persons employed by the affected domestic industry;

 

       - total capital invested, production and sales volume, and aggregate production capacity of the domestic industry;

 

       - effect of the price of the allegedly subsidized product on the price of the like product in the domestic market; and

 

       - consequent impact of the importation of the allegedly subsidized product on the domestic industry as demonstrated by relevant factors and indices having a bearing on the state of the domestic industry as enumerated in Section 12 of the IRR.

 

              + prices at which the product is sold in the domestic market of the exporting country and export prices;

 

              + injury and causality;

 

              + volume of subsidized imports; and

 

              + adverse effects of such imports on domestic prices and on domestic industries.

During this period, the applicant maybe asked to clarify the information they have provided or to submit additional evidence/documents. DTI/DA may also take into account other information available to it in order to check the accuracy and adequacy of the information provided. The investigation will not be initiated if (a) there was insufficient support from domestic producers; (b) insufficient evidence of injury; (c) volume of subsidized import is less than 3% of total Philippine imports and; (d) amount of subsidy is less than 1% ad valorem.

Upon acceptance of a properly documented application and before initiating an investigation, the Secretary of DTI or DA shall notify the government of the country of export or origin about the impending countervailing investigation and provide it a copy of the non-confidential summary of the application.

Upon notification, the government of the country of export or origin shall also be invited for consultation with the objective of clarifying the situation as to matters referred to in the application and arriving at a mutually agreed solution.

 

• Preliminary Determination

 

Before initiating an investigation, the BIS notifies the government of the exporting country concerned to provide a reasonable opportunity for consultation with the objective of clarifying the situation and arriving at a mutually agreed solution. The period required for consultation will vary according to the nature of the particular case. Reasonable opportunity for continued consultation shall be provided throughout the investigation period. After a decision to initiate an investigation has been made, the DTI/DA advises the applicant of its decision. The notice of initiation is also published in two (2) newspapers of general circulation. The agency also, notifies all the interested parties i.e. the Philippine importer/s, foreign producer/s and exporter/s and require them to answer and submit, within thirty (30) days from receipt of such notice, the response to the questionnaire and other submissions. If the respondents fail to cooperate or did not provide the necessary information within the prescribed period, a decision may be based on the available pertinent data.

Within twenty (20) days from receipt of the responses from interested parties, the BIS conducts a thorough evaluation of all the data submitted or provided by the applicant, Philippine importer/s, foreign producer/s and exporter/s and, together with the information obtained independently  and makes a preliminary determination (on whether or not a provisional measure may be imposed).

Upon a preliminary affirmative finding, the Secretary of DTI or DA issues a Department Order for the imposition of a provisional countervailing duty in the form of a cash bond equivalent to the amount of provisionally calculated dumping margin.

The requirement of the dumping bond shall be made not sooner than sixty (60) days from the date of initiation of the investigation. The date of the initiation of the investigation shall be the date the Secretary publishes such notice in two (2) newspapers of general circulation.

The provisional countervailing duty may be imposed for a period not exceeding four (4) months.

The Secretary of DTI or DA shall immediately terminate the countervailing investigation upon finding that:

     - the amount of subsidy is de minimis or where the volume of the subsidized product, or the injury is negligible; or

 

     - the volume of imports from a particular country is less than three percent (3%) of all imports of like product. However, this rule does not apply when countries with individual shares of less than 3% collectively account for more than 7% of imports of the product under investigation (in the case of developing countries the subsidized imports are less than 4% of total imports of the importing country). However, this rule does not apply when developing countries with individual shares of less than 4% collectively account for more than 9% of total imports); or

     

     - the injury is negligible.

 

• Final Determination

 

Within three (3) days from the receipt of advice that a PRELIMINARY DETERMINATION of subsidization was found to exist and together with the pertinent records from the Secretary that the protest merits formal inquiry to determine subsidization, the Tariff Commission fully investigates the alleged subsidization, material injury and causal link, and makes a FINAL DETERMINATION within one hundred (120) days from receipt of the case records.

During the investigation, the Commission visits the protestant in order to verify information provided in the application and in any subsequent submission. Protestant should, therefore, retain worksheets supporting all data submitted for Commission’s consideration. In addition, the Commission will send supplementary questionnaires to the interested parties, domestic and foreign, to gather additional information that may be useful in the overall evaluation of the protest. The Commission may also conduct an on-site investigation of the foreign producer/exporter. Detailed information will be requested from the domestic manufacturers supporting the protest as well as from other interested parties.

The Commission also receives representations and holds consultations. It is important to note that during the consultations conducted by the Commission, it is the responsibility of the protestant(s) to prove its injury allegations. For this purpose, protestants usually retain the services of counsel with expertise in subsidy and countervailing measures.

Before making its final determination, the Commission informs all the interested parties in writing of the essential facts under consideration which form the basis for the decision. The parties are given sufficient time to comment and defend their interest.

The Commission shall submit its findings to the DTI/DA Secretary. It shall also give notice to interested parties of such findings submitted to the Secretary.

 

• Issuance of Department Order/Imposition of the Duty

 

The DTI or DA Secretary shall, within ten (10) days from receipt of the affirmative final determination by the Commission, issue a Department Order imposing a definitive countervailing duty on the subsidized product, unless he has earlier accepted a price undertaking from the foreign exporter, producer or government of the country of export or origin.

The DTI or DA Secretary shall furnish the Secretary of Finance with the copy of the Order and request the latter to direct the Commissioner of Customs to cause the countervailing duty to be levied in addition to any other duties on such products and on like products subsequently imported from the specific exporter from the country of export. The rate of the duty cannot be more than the ascertained amount of subsidy. The duties apply for five (5) years unless a review establishes a need to continue them so that injury does not recur.

The Order of the Secretary shall be published in two (2) newspapers of general circulation. The parties’ litigants, the Tariff Commission, the Bureau of Customs and other proper government agencies shall be furnished with a copy of the decision.

In case of a negative finding by the Commission, and after the lapse of the period for the petitioner to appeal to the Court of Tax Appeals, the Secretary shall issue, through the Secretary of Finance, an Order for the Commissioner of Customs to immediately release the cash bond to the importer. All the parties concerned shall also be duly notified of the dismissal of the case.

 

Source: Tariff Commission