COUNTERVAILING

Question 1

Republic Act No. 8751

Answer 1

“Countervailing Duty Act of
1999 “

Question 2

LEGISLATION
R.A. 8751 was signed on

Answer 2

August 7, 1999, and took effect on August 31, 1999.

Question 3

IRR

Answer 3

The Implementing Rules and Regulations

Question 4

The Implementing Rules and Regulations (IRR) or Joint Administrative
Order no. 2s, 2000 was published on

Answer 4

September 18 2000 and took effect
on September 25, 2000

Question 5

is a trade countermeasure adopted by the government to offset any bounty or
subsidy given to exporters which is not generally available to
other producers of the exporting country.

Answer 5

Subsidies and countervailing measures

Question 6

Refers to any specific assistance (e.g. financial contribution, income or price support schemes) provided directly or
indirectly by the government of the country of export or origin in respect of the product imported into the Philippines, which confers a benefit to the foreign exporter
or producer of said product.

Answer 6

Subsidy

Question 7

Are all subsidies countervailable?

Answer 7

Not all subsidies are countervailable/actionable.
Subsidy, in order to be countervailable, must be
“specific”.

Question 8

Refers to the subsidy limited to an enterprise or industry, or to a
group of enterprises or industries.

Answer 8

specific subsidy

Question 9

“__________” or “___________” are those
falling under the definition of “subsidy” which are neither non-actionable nor prohibited subsidies.

Answer 9

Actionable subsidies or yellow subsidies

Question 10

“______________” or “____________” are those
which are permitted as they are of a general nature, i.e., applied across-the-board to all industries and not limited to a
specific industry or enterprise or group of enterprises or industries.

Answer 10

“Non-actionable subsidies” or “green subsidies”

Question 11

“_________” or “_________,” on the other hand, include export subsidies, i.e., those that are contingent on export performance, and subsidies that are contingent on the
use of domestic over imported goods

Answer 11

“Prohibited subsidies” or “red subsidies,”

Question 12

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.

Answer 12

Comparability
Product

Question 13

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.

Answer 13

Subsidy

Question 14

means material ______ to a domestic industry (current ________),
threat of material ________(future ______) or material retardation of the
establishment of a domestic industry.

Answer 14

Injury

Question 15

refers to a finding that the material injury suffered by the domestic industry is the direct result of the importation of the
subsidized product.

Answer 15

Causal Link

Question 16

DTI-BIS or DA

Answer 16

Department of Trade and Industry – Bureau of Import Services or Department of Agriculture (DA)

Question 17

Receives the properly documented application (DTI for industrial
goods and DA for agricultural goods)

Determines whether or not a prima facie case exists to warrant
initiation of investigation

Conducts preliminary investigation to determine whether or not
provisional measure may be imposed.

Answer 17

Department of Trade and Industry – Bureau of Import Services or Department of Agriculture (DA)

Question 18

Conducts formal investigation and makes the final determination for purposes of the imposition of the definitive countervailing duty.

Conducts countervailing reviews.

Answer 18

Tariff Commission

Question 19

Collects the countervailing duties.

Answer 19

Bureau of Customs

Question 20

A _____________may cover any product which is granted, directly or indirectly, by the government in the country of export or origin, any kind or form of specific subsidy upon the exportation or manufacture of such product, and the importation of such subsidized product is causing or threatening to cause material injury to a
domestic industry, or is materially retarding the growth, or preventing the establishment of, a domestic industry.

Answer 20

countervailing protest

Question 21

Conditionally duty-free importations enumerated under

Answer 21

Section 800 of the Customs Modernization and Tariff Act.

Question 22

• Refers to the domestic producers of like products as a whole or to those whose collective output of the products constitutes a major proportion of the total domestic production of those products in the industry concerned.

Answer 22

Domestic Industry

Question 23

the term “__________” may be
interpreted as referring to the rest of the producers.

Answer 23

domestic industry

Question 24

Stages in a countervailing investigation

Answer 24

• Prima Facie Determination
• Preliminary Determination
• Final Determination
  *Issuance of Department Order

Question 25

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.

Answer 25

PRIMA FACIE DETERMINATION

Question 26

Once a prima facie case has been established, DTI-BIS or DA initiates the investigation and makes a preliminary determination (on whether or not a provisional measure may be imposed) within twenty (20) days from receipt of the answer of the respondents and other interested parties.

Answer 26

PRELIMINARY DETERMINATION

Question 27

The requirement of the 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.

Answer 27

* PRELIMINARY DETERMINATION

Question 28

The Tariff Commission conducts the formal investigation during which it notifies all interested parties; receives representations and/or other submissions; holds preliminary conference and public consultations; and conducts on site investigation/data verification (for both foreign and domestic parties)

Answer 28

*FINAL DETERMINATION

Question 29

Within 10 days from receipt of an affirmative final determination by the Commission, the DA or DTI Secretary shall issue a Department Order for the imposition of a definitive countervailing duty, unless the Secretary has earlier accepted an undertaking from the foreign exporter, producer or government of the country of export or origin.

Answer 29

ISSUANCE OF DEPARTMENT ORDER

Question 30

__________ is an offer by the government of the exporting country to eliminate or limit the subsidy, or voluntary commitment by the foreign exporter and/or the producer that they will increase their prices or to cease exporting to the Philippines at a subsidized price.

Answer 30

Voluntary undertaking

Question 31

In case of negative determination, either Secretary shall issue, through the Secretary of Finance, after the lapse of the period for the petitioner to appeal to the Court of Tax Appeals, an Order for the Commissioner of Customs to immediately release the cash bond to the importer.

Answer 31

*ISSUANCE OF DEPARTMENT ORDER

Question 32

What are the 3 modalities in determining the price effects of dumped imports?

Answer 32

Price depression Price suppression Price undercutting

Question 33

refers to the extent to which the domestic producer reduces his selling price in order to compete with the allegedly subsidized product.

Answer 33

* Price depression

Question 34

refers to the extent by which the allegedly subsidized product prevents the domestic producer from increasing his selling price to a level that will allow full recovery of his cost of production.

Answer 34

Price suppression

Question 35

refers to the extent to which the allegedly subsidized product is consistently sold at price below the domestic selling price of the like product.

Answer 35

Price undercutting

Question 36

takes the form of security (cash deposit or bond) equal to the amount of the provisionally calculated amount of subsidy. It is applied only after the DA or DTI-BIS has made a preliminary affirmative determination no sooner than 60 days from initiation of the case.

Answer 36

Provisional measure

Question 37

Final countervailing duty imposed, in addition to the regular duty and other charges, on protested product imported from a specific exporter, following an affirmative final determination

Answer 37

Definitive countervailing duty

Question 38

Duration of imposition of countervailin measure Provisional measure

Answer 38

four months

Question 39

*Definitive countervailing duty – ________ from the date of imposition

Answer 39

five years