Possibility of obtaining 'market-oriented industry' status
08/12/2022 07:08
If the targeted country cannot escape being labelled an NME, the next best thing is for the targeted industry to demonstrate that it is a 'market-oriented industry'. Under United States law, if the targeted industry can demonstrate that it meets the definition of a 'market-oriented industry', the Commerce Department will employ its normal rules for calculating anti-dumping margins for producers in that particular industry, notwithstanding that the Commerce Department considers the country as a whole to be an NME.
To determine when this exception can be applied, the Commerce Department has derived a special test referred to as the 'market-oriented industry' test or MOI test. The test is applied on an industry-wide basis. The criteria for determining whether an industry is an MOI are:
- Virtually no government involvement in setting prices or the amounts to be produced;
- The industry producing the subject merchandise should be characterized by private or collective ownership; and
- Market-determined prices must be paid for all significant inputs, whether material or non-material, and for all but an insignificant portion of all inputs accounting for the total value of the subject merchandise.
In addition, the Commerce Department requires the NME exporter to provide information on nearly the entire industry. All evidence submitted to the Commerce Department must cover producers that collectively constitute the industry in question. This industry-wide data requirement and the strict requirements for an affirmative MOI determination are often too difficult for an NME exporter to meet. As a result, although it is not unusual for NME exporters to request MOI status and it is not unusual for the Department to conduct an MOI analysis, it is rare for the Department to agree to grant MOI status to the foreign industry.
About Us
