What are the elements or factors to be considered before a countervailing duty may be imposed?

09/05/2024 03:20 - 115 Views

There are four (4) elements or factors which must be considered before a countervailing duty may be imposed, namely:

- Product Comparability – a product is identical or alike in all respects to the article under consideration or, in absence of such product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.

- Subsidy – refers to any specific assistance directly or indirectly provided by the government of the country of export or origin in respect of a product imported into the Philippines.

- Injury – means material injury to a domestic industry, threat of material injury or material retardation of the growth or the prevention of the establishment of a domestic industry. Injury test must be based on positive evidence and shall involve an objective examination of both (a) the volume of the subsidized imports and the effect of subsidized imports on the prices of like product in the domestic market, and (b) the consequent impact of these imports on domestic producers of such products.

- Causal Link – the material injury suffered by the domestic industry is the direct result of the importation of the subsidized product.