Anti Dumping
As a signatory to the World Trade Organization (WTO), and in accordance with established rights and obligations, Jamaica has enacted legislation based upon the WTO's Anti-Dumping Agreement on the implementation of Article VI of the GATT 1994, and the WTO Agreement on Subsidies and Countervailing Measures. The Jamaica Custom's Duties (Dumping and Subsidies) Act 1999 (CDDASA) sets out the general investigation process and provides for the imposition of anti-dumping and countervailing duties. The CDDASA established the statutory body called the Anti-dumping and Subsidies Commission (ADASC), whose function is the implementation of the provisions of the CDDASA.
Dumping
Dumping occurs when a company exports a product at a price (export price) lower than the price it normally charges in its own home market (normal value). Dumping is not a prohibited practice under international trade agreements, however, the WTO/Customs Duties (Dumping and Subsidies) Act 1999 allows remedial action to be taken against dumping where it causes material injury to the Jamaican industry which produces competing goods. The Anti-dumping and Subsidies Commission may initiate an inquiry or the domestic industry may file an application for the imposition of measures to redress the situation.
Application Details
The application must be made on behalf of the industry producing like goods to those allegedly being dumped or subsidized. The application must provide information and sufficient supporting evidence to:
- Identify the dumped goods;
- Identify the domestic competing goods;
- Identify the country of export;
- Identify the relevant Jamaican industry;
- Estimate normal value and export prices and establish that the goods have been dumped;
- Establish the material injury that the industry has suffered, or is likely to suffer; and
- Demonstrate how the dumped goods have caused, or are likely to cause, the material injury.
The Dumping and Subsidy Investigation Process
Confidential Information is protected and unauthorised disclosure is deemed an offence under the Customs Duties (Dumping and Subsidies) Act 1999.
Measures
Measures imposed against dumping are called anti-dumping duties. This is the dump margin or an increase in the tariff rate to close the gap between the export price and the normal value. These duties are generally imposed for a five-year period. Collection of duties may be deferred where the exporter undertakes to increase his price to reduce the injury.
Subsidy Actions
A subsidy in relation to goods exported to Jamaica, is a financial contribution by a government, or on behalf of a government, relative to the production, manufacture or export of those goods. The financial contribution by a government, or on behalf of a government, relative to the production, manufacture or export of these goods. The financial contribution may be any form of income or price support and MUST confer a benefit on those goods.
Application Details
The application process for Dumping and Subsidizing is essentially the same.
Measures
A duty imposed to counteract a subsidy is called a countervailing duty, and is generally applicable for five (5) years.
The Investigation Process
Where an industry's claim is considered sufficient to warrant an investigation, the Anti-dumping and Subsidies Commission will notify the government of the exporting country and the public of the investigation. The Investigation Process is outlined below. The processing time can take up to 305 days from the date of receipt of the application to the final determination.
The Commerce Division of the Ministry has responsibility for the Anti Dumping and Subsidies Commission.