Anti-Dumping Investigation: Calculation of the Dumping Margin

Abstract

Background/Objectives: The research of product dumped import practices is of current importance as it is vital to defend the Eurasian Economic Union common market from unfair competition on behalf of the companies of an exporting foreign state (union of foreign states). Method: The main research method of the aforementioned problem is a system analysis method, which enables to study in an integrated manner such significant component of a dumping triad as the dumping margin and particularly, to develop a certain method of comparison of normal value of a product with its export price, as well to offer different ways of calculation of the absolute amount and relative value (rate) of the margin assisted by the introduced business practices, such as breakeven model, etc. Findings: Main results of the research enable to make a conclusion that three main ways of calculating the dumping margin are possible in regard to the supply of goods: 1. Based on export prices formed in purchase and sale conditions in a domestic market of an exporting foreign state (union of foreign states) at a normal course of trade; 2. Based on current prices at which goods are supplied from an exporting country to the third countries; 3. Based on export prices formed in the countries with a transition (or non-market) economy in which an absolute (or partial) state foreign trade monopoly takes place. Another conclusion is that the use of asymmetrical comparison method of normal value of goods and their export prices in the course of exercising the so-called targeted dumping makes it possible for the antidumping authorities, to zero out those foreign trade operations in which dumped import practices are not present, which purposely increases both the rate and the abovementioned relative value of the margin, thus raising the total value of the duty. Improvements: Materials of the article can be of a practical value for the manufacturers (or a pool of manufacturing companies) in the markets of the EEU member-states when preparing the declaration regarding the use of Anti-Dumping measures against importation of the like product into the Eurasian single customs territory at dumping prices, which causes a financial damage to a certain industry in the EEU.