📄 Įstatymo tekstas
_____Official translation
Official translation
LAW ON THE AMENDMENT OF THE ANTI-DUMPING LAW
OF THE REPUBLIC OF LITHUANIA
23 June 1998 No. VIII-807
Vilnius
(new edition by 17 December 2001 No. IX-663)
Article 1. Revised Version of the Anti-dumping Law of the Republic of Lithuania
The Anti-dumping Law shall be amended and set forth to read as follows:
"ANTI-DUMPING LAW OF THE REPUBLIC OF LITHUANIA
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Purpose of the Law
The purpose of the Law is provision of legal conditions for the protection of the domestic industry in cases where an affirmative determination of dumping and injury to the domestic industry has been made during the investigation (conducted in accordance with the provisions of this Law) of imports into the customs territory of the Republic of Lithuania.
Article 2. Definitions
As used in this Law:
1. "Dumping" means sale of the product in question from the exporting country into the customs territory of the Republic of Lithuania at a price lower than its normal value (comparable price).
2. "Product in question" means the product suspected of being imported into the customs territory of the Republic of Lithuania at a dumping price.
3. "Dumping price" means the price at which the product in question is sold in the customs territory of the Republic of Lithuania from the country of export and which is less than the normal value (comparable price) of the product in question.
4. "Customs territory of the Republic of Lithuania" means the territory of the Republic of Lithuania bounded by the customs border of the Republic of Lithuania, except where otherwise provided by the international agreements to which the Republic of Lithuania is a party. For the purposes of this Law, products that are located in the free economic zone shall be considered as located outside the customs territory of the Republic of Lithuania.
5. "Customs border of the Republic of Lithuania" means the boundary of the customs territory of the Republic of Lithuania coinciding with the state border of the Republic of Lithuania, except where otherwise provided by the international agreements to which the Republic of Lithuania is a part.
6. "A like product" means an identical product, i.e. a product in all respects similar to the product in question, imported into the customs territory of the Republic of Lithuania or, where there is no identical product, any other product possessing similar properties.
7. "Normal value (comparable price)" means the price paid or payable in the ordinary course of trade by independent consumers for the product in question destined for consumption in the domestic market of the exporting country, which is determined on the basis of provisions of Article 4 of this Law.
8. "Export price" means the price actually paid or payable for the product in question sold for export into the customs territory of the Republic of Lithuania from the exporting country, determined on the basis provisions of Article 5 of this Law.
9. "Dumping margin" means the amount by which the normal value exceeds the export price, determined in compliance with the provisions of Article 7 of this Law.
10. "Exporting country" as a rule means the country of origin of the product, but may also be the intermediate country. However, the intermediate country shall not be considered as the exporting country if the product is only transhipped through the country or if the product is not manufactured in the country or if it is not possible to determine the normal value of the product in the country.
11. "Injury" means material damage to the domestic industry caused by dumping or the threat of material damage to the domestic industry or material retardation by dumping of the establishment of the corresponding domestic industry.
12. "Domestic industry" means the Lithuanian producers as a whole of the like products or those of them whose collective output of the like products constitutes a major proportion of the total domestic production of the like products in the customs territory of the Republic of Lithuania as established in Article 9 of this Law.
13. "Anti-dumping duty" means the duty imposed, upon the completion of the investigation, on the resolution of the Government of the Republic of Lithuania in respect of the product in question released into free circulation into the customs territory of the Republic of Lithuania imported from the exporters or the exporting countries indicated in the above resolution.
14. "Provisional anti-dumping duty" means the duty imposed upon the resolution of the Government of the Republic of Lithuania in respect of the product in question, imported from the exporters or exporting countries of export specified in the resolution, released for free circulation into the customs territory of the Republic of Lithuania. The purpose of the duty is to avoid damage being caused to the domestic industry during the investigation period.
15. "The interested parties" in the determination and application of anti-dumping procedures are:
1) Lithuanian producers (potential producers including) of the like product or trade or business associations the majority of whose members are Lithuanian producers of the like product;
2) the importers, foreign producers and/or exporters of the product in question or trade or business associations the majority of whose members are importers, foreign producers, and/or exporters of the product in question;
3) the governments of the countries of origin of the product in question or of countries from which the product in question is imported into the customs territory of the Republic of Lithuania (hereinafter -of the country of origin or exporting country of the product in question);
4) Lithuanian enterprises using the product in question for the manufacture of their products;
5) the Government of the Republic of Lithuania or other state institutions;
6) public organisations for the protection of Lithuanian consumer rights.
16. "Exporter" means the natural or legal person of the exporting country, who/which sells the like products to a natural or legal person of the Republic of Lithuania or who/which has concluded any other contract for the supply of such products into the customs territory of the Republic of Lithuania.
17. "Importer" means the natural or legal person of the Republic of Lithuania who has purchased the like products from a foreign country natural or legal person or has concluded any other contract for the supply of such products into the customs territory of the Republic of Lithuania.
18. "Import" means the release of the product in question into free circulation in the customs territory of the Republic of Lithuania.
19. "The period of investigation" means the period of time for which the financial and other information required for the investigation is examined in the investigation of dumping. Normally, this period shall embrace the last financial year preceding the initiation of the investigation to determine the existence of dumping. In no case may the period be shorter than six months before the date of adoption of the decision to conduct the investigation.
Article 3. State Institutions Implementing the Law
1. The Anti-dumping Law shall be implemented by the Government of the Republic of Lithuania (hereinafter - the Government) and the institution authorised by it.
2. The institution authorised by the Government (hereinafter - the Institution) shall conduct the investigation, make samplings, accept from the producer or exporter undertakings regarding the raising of the price or undertakings to cease export of the product in question at dumped prices into the customs territory of the Republic of Lithuania (hereinafter - price undertaking), monitor fulfilment of the undertakings, carry out reviews of the applied anti-dumping duties and price undertakings and perform other functions established under this Law or by the Government, make decisions to conduct or not to conduct the investigation, to suspend, extend the duration, limit the extent of or complete the investigation, to accept or refuse accepting the price undertaking, to review the anti-dumping duty or price undertaking, shall prepare and submit to the Government proposals to apply the provisional anti-dumping duty, to extend the period of its application, to change the amount of the anti-dumping duty or to terminate the duty (after a review), to refund the anti-dumping duty, shall also furnish to the Government information containing, among other data, facts and reasons on which the above proposals are based.
3. The Government shall adopt a resolution to impose a provisional anti-dumping duty, to impose the anti-dumping duty, to extend the period of application of the duty, to change the amount of the anti-dumping duty or to repeal the duty (following the review), to refund the anti-dumping duty.
CHAPTER TWO
DETERMINATION OF DUMPING
Article 4. Establishment of the Normal Value
1. The normal value shall be established by the Institution:
1) upon initiating the investigation of dumping in accordance with the provisions of Article 10 of this Law. The preliminary normal value established in the course of the investigation shall be applied to determine the preliminary margin of dumping, based whereon the provisional anti-dumping duty may be calculated;
2) before the decision to terminate the investigation is made. The normal value established on the basis of investigation results shall be used for determining the margin of dumping. The anti-dumping duty shall be calculated based on the margin except where the margin of dumping is de minimis according to paragraph 5 of Article 12 of this Law.
2. The normal value shall be established individually to every exporter under investigation based on the prices paid or payable, in the ordinary course of trade, for the product in question by independent customers in the domestic market of the exporting country, except where the normal value is established in accordance with the provisions of paragraph 17 of this Article.
3. Where the exporter in the exporting country does not produce or does not sell the like product, the normal value may be established on the basis of prices in the domestic markets of other sellers or producers in the ordinary course of trade in the exporting country.
4. Where there are no or insufficient sales of the like product in the ordinary course of trade in the domestic market of the exporting country or where because of the particular market situation such sales do not permit a proper comparison of the normal value and export price, the normal value of the product in question shall be determined:
1) on the basis of the cost of production in the country of origin plus a reasonable amount for selling, administrative and general costs and for reasonable profits, or
2) on the basis of the export price, in the ordinary course of trade, to an appropriate third country, provided that this price is typical, representative of the market price of the product in question during the export of the product into the customs territory of the Republic of Lithuania.
5. Sales of the product in question destined for consumption in the domestic market shall be deemed sufficient to be used to determine normal value if such sales volume constitutes 5% or more of the sales volume of the product in question into the customs territory of the Republic of Lithuania. However, a lower volume of sales may be used when the prices charged are considered representative for the market concerned and permit a proper comparison.
6. Prices of the product in question paid between natural and legal persons who appear to be associated or to have a compensatory arrangement with each other (according to paragraphs 3 and 4 of Article 9 of this Law), where this directly or indirectly affects the prices of the products, shall not be considered as prices in the ordinary course of trade and shall not be used to establish the normal value, unless it is determined that the prices of the products in question are not affected by that relationship between the natural and legal persons.
7. Sales of the product in question in the domestic market of the exporting country, or export sales to a third country, at prices below unit production costs (fixed and variable) plus selling, administrative and general costs and reasonable profits shall be treated as being not in the ordinary course of trade and may be disregarded in determining normal value. The above provision shall be applicable only where it is determined that such sales are made:
1) within an extended period (usually one year). However even in the case of evident dumping the period may be not less than six months.;
2) in substantial quantities, as defined in paragraph 9 of this Article;
3) at prices which do not provide for the recovery of all unit costs within a reasonable period of time.
8. If prices of the product in question in the domestic market of the exporting country at the time of sale to a third country are below the product unit costs specified in paragraph 7 of this Article but are above weighted average costs for the period of investigation, such prices shall be considered to provide for recovery of costs within a reasonable period of time.
9. Sales below unit costs specified in paragraph 7 of this Article shall be considered to be made in substantial quantities within such a period when it is established that:
1) the weighted average unit selling price for determining the normal value according contracts is below the weighted average unit costs specified in paragraph 7 of this Article, or
2) the volume of sales below unit costs specified in paragraph 7 of this Article is not less than 20% of the sales in the domestic market of the exporting country, being used to determine the normal value.
10. All contracts concluded by the exporter with the domestic purchasers of the product in question during the period of investigation shall be examined to determine the normal value. The exporter's transactions shall be examined according to the primary documents of sale (invoices, accounts, contracts, price-lists, etc.) by identifying the product, analysing the volume of sales in physical and value terms, on the basis of prices, purchasers (wholesalers, retailers), discounts and rebates given, dates of sales and other factors.
11. In order to effect a fair comparison between the normal value of the product in question and its export price for determining the dumping margin, due allowance, in the form of adjustments according to the provisions of paragraph 2 of Article 6 of this Law, shall be made with respect to the normal value established on the basis of the primary documents. Any adjustments shall be made to the normal value for differences in the conditions of trade in the exporting country and Lithuania.
12. The amounts for production, for selling, for general and administrative costs of the product in question shall normally be calculated on the basis of records submitted by the exporter or producer under investigation, provided that such records are in accordance with the generally accepted accounting principles of the exporting country and that it is shown that the records reasonably reflect the costs associated with the production and sale (distribution) of the product under consideration.
13. During the investigation the institution shall consider all available evidence on the proper allocation of costs, including that which is made available by the exporter or producer in the course of the investigation provided that such allocations have been historically utilised by the exporter or producer, in particular in relation to establishing appropriate amortisation and depreciation periods and allowances for capital expenditure and other development costs. In the absence of a more appropriate method, preference shall be given to the allocation of costs on the basis of turnover.
14. Unless already reflected in the cost allocations under paragraph 13 of this Article, costs shall be adjusted appropriately for those non-recurring items of cost which benefit future and/or current production or for circumstances in which costs during the period of investigation are affected by adjustment.
15. Where, during the period of investigation (or part of it) the costs for part of the period for cost recovery are affected by new production (due to the use of new production facilities requiring substantial additional investment and by low capacity-utilisation rates in the use of the facilities), the average costs for the start-up phase shall be those applicable, under the allocation rules referred to in paragraph 13 of this Article, at the end of such a phase, and shall be included, under the provisions of paragraphs 7, 8 and 9 of this Article, in the weighted average unit costs. If the length of the start-up phase exceeds the investigation period, the costs at the end of the investigation period shall be considered as average costs. The said costs could be reasonably relied upon during the investigation.
16. The amounts for selling, for general and administrative costs and for profits shall be based on actual data pertaining to production and sales, in the ordinary course of trade, of the product in question, by the exporter or producer under investigation. When the amounts of costs and profit cannot be determined on this basis, the amounts may be determined on the basis of:
1) the weighted average of the actual amounts determined for other exporters or producers subject to investigation in respect of production and sales of the product in question in the domestic market of the country of origin;
2) the actual amounts applicable to production and sales, in the ordinary course of trade, of the same general category of products for the exporter or producer in question in the domestic market of the country of origin;
3) any reasonable method, other than that referred to in subparagraphs 1 and 2 of this paragraph, provided that the amount for profit so established shall not exceed the profit normally realised by other exporters or producers on sales of products of the same general category in the domestic market in the country of origin.
17. In anti-dumping investigations concerning imports into the customs territory of the Republic of Lithuania of the products in question from a non-market economy country a single normal value for all imported products in question originating from the country (save for the case provided in paragraph 21 of this Article) shall be constructed in any of the following ways:
1) on the basis of the price of the product in question in the producer's domestic market in a market economy third country (hereinafter - third country) or the value constructed in a third country on the basis of the costs of production plus a reasonable amount for selling, administrative and general costs and for profits;
2) on the basis of the price of the product in question when sold from such a third country to other countries, the Republic of Lithuania including;
3) where it is not possible to determine normal value in the manner specified in paragraphs 1 and 2 of this Article, it may be determined on any other reasonable basis, including the price actually paid or payable in the customs territory of the Republic of Lithuania for the like product, duly adjusted if necessary to include a reasonable profit margin.
18. The list of non-market economy countries and countries with respect to which special regime is applied shall be approved by the Government.
19. The third country specified in paragraph 17 of this Article shall be selected in a not unreasonable manner, due account being taken of any reliable information of the conditions of production of the product in question in the country, including the production process and volume of production of the product in question as well as all available information on the market conditions in the country during the period of investigation and in comparison to the market conditions of the country under investigation. The time limit set for conducting the investigation must also be taken into account. Where possible, a market economy country taking part in the investigation shall be selected as the third country. The interested parties shall be notified of the selection of the third country shortly after the entry into force of the decision to conduct the anti-dumping investigation and shall be given 10 calendar days to comment on the selection of the country.
20. Proceeding with the investigation and having regard to the limited time period, the Institution may replace the third country selected for imposing the provisional anti-dumping duty by another country and, having made calculations on the basis of the data relating to the latter, submit a proposal to the Government to impose the definitive anti-dumping duty. Such replacement shall be allowed where, during the investigation of imports into the customs territory of the Republic of Lithuania of products produced by a non-market economy country a decision is taken to conduct another anti-dumping investigation concerning the product in question produced in a market economy country. A third country other than the one selected for the initial investigation (on the basis of which the imposed anti-dumping duty is applied) may be selected also when reviews are carried out pursuant to the provisions of Chapter Seven of this Law.
21. In anti-dumping investigations concerning import into the customs territory of the Republic of Lithuania of the products in question (produced in countries on the list referred to in paragraph 18 of this Article or in any other non-market economy country which is a member of the World Trade Organisation on the date of the initiation of the investigation), normal value shall be determined in accordance with the procedure applied in respect of the market economy exporting country only if it is shown by the documents submitted by the exporter subject to the investigation that market economy conditions prevail for this producer or producers in respect of the manufacture and sale of the product in question. In the absence of such evidence, normal value shall be determined in accordance with the provisions of paragraph 17 of this Article.
22. The Institution, having given the interested parties an opportunity to comment, must within three months of the initiation of the investigation (according to the criteria specified in paragraph 23 of this Article) make a determination whether the producer operates under market-economy conditions. The determination made by the
Institution on the issue shall remain in force throughout the investigation.
23. The criteria on the basis of which the Institution (upon being submitted appropriate documents) determines whether the producers of the countries specified in paragraph 21 of this Article produce the product in question under the market-economy conditions shall be as follows:
1) decisions of the producer regarding the management of the enterprise, costs and inputs into the production of the product in question, including costs of raw materials and other resources, cost of technology and labour, sales and investment are made without significant state interference in this regard, in response to market signals reflecting supply and demand, and costs of major inputs into the production of the product in question substantially reflect market values thereof in the country;
2) the producer has one clear set of basic accounting records which may be independently audited and which are applied for all purposes;
3) the production costs and financial situation of the enterprise are not subject to significant distortions carried over from the former non-market economy system, in particular in relation to depreciation of assets, other write-offs, barter trade and payment via compensation of debts;
4) the enterprise concerned is subject to the Enterprise Bankruptcy Law and Enterprise Law;
5) exchange-rate conversions are carried out at the market rate.
Article 5. Determination of Export Price of the Product in Question
1. In anti-dumping investigation the export price shall be determined in respect of each exporter under investigation, except for the cases specified in paragraph 2 of this Article.
2. Where in anti-dumping investigation of products imported into the customs territory of the Republic of Lithuania from non-market economy countries the Institution determines for the exporter an individual normal value according to the requirements laid down in paragraph 21 of Article 4 of this Law, an individual export price must also be determined. In any other case a single export price shall be determined for all exporters from the non-market economy country subject to investigation on the basis of a weighted average of prices of all export transactions from that country.
3. In order to determine the export price, all export transactions made by the exporter of the product in question with all purchasers during the period of investigation or those of the transactions which are representative of adequate volume of export sales shall be investigated, including export transactions from the exporting country into the customs territory of the Republic of Lithuania via the third countries.
4. The exporter's transactions shall be considered on the basis of the primary documents of sale (invoices, accounts, contracts, price-lists, etc.) by identifying the product, analysing the volume of sales in physical and value terms, the prices of purchasers (wholesalers, retailers), discounts and rebates given, dates of sales and other factors.
5. Adjustments of the export price determined on the basis of primary documents may be made for the factors specified in paragraph 2 of Article 6 of this Law in order to permit comparison of the normal value and export price of the product in question for the purpose of determining the reasonable margin of dumping.
6. In cases where the export price may not be established or where the Institution suspects that the export price is unreliable (because of an association or a compensatory arrangement between the exporter and the importer or a third party), the export price may be constructed on the basis of the price at which the imported product is resold to the first buyer which does not appear to be associated or to have a compensatory arrangement with the exporter. If the product is not resold to such a buyer or is not resold in the condition in which it was imported, the export price shall be constructed on any other reasonable basis.
7. In the cases specified in paragraph 6 of this Article adjustment of the constructed export price for all costs (including duties and taxes, incurred between importation and resale, and for profits accruing) shall be made so as to establish a reliable export price, at the customs border of the Republic of Lithuania.
8. In the cases where regular costs of the domestic importer are borne by another natural or legal person who/which appears to be associated or to have a compensatory arrangement with the domestic importer or exporter, adjustment of the export price may be made for:
1) usual differences in transport, insurance, handling, loading and ancillary costs;
2) differences in various duties and other taxes payable in the importing country by reason of the importation or sale of the goods;
3) differences in the selling, general and administrative costs and profit.
Article 6. Comparison between the Normal Value and the Export Price
1. In order to determine the margin of dumping, the Institution shall make a comparison between the export price and the normal value of the product in question. This comparison shall be made at the same level of trade (normally at the ex-factory level, transport and distribution costs excluded) and in respect of sales of the products in question made at as nearly as possible the same time. In each specific case due account must be taken of other differences which affect prices and price comparability. Due allowance, in the form of export price and normal value adjustments, shall be made in each case, on its merits, for the above differences. Making adjustments, costs at the end of the indicative period must be demonstrated or, where the period is longer than the period of investigation, costs of the longer period, which the Institution may take account of during the investigation.
2. The factors for which adjustments of the normal value and export price are made are as follows:
1) physical characteristics of the product sold for export and product destined for consumption in the domestic market of the exporting country. The amount of the adjustment must correspond to a reasonable estimate of the market value of the difference in physical characteristics of the product sold for export and product destined for consumption in the domestic market. No adjustments shall be made for differences in physical characteristics which do not affect the market price of the products;
2) import charges and indirect taxes. The amount of adjustment must correspond to any import charges or indirect taxes borne by the product in question or by materials incorporated therein, when the product is destined for consumption in the exporting country which, however, are not collected or refunded in respect of the product exported to the customs territory of the Republic of Lithuania;
3) discounts, rebates and quantities. An adjustment shall be made for differences in discounts and rebates, including those given for differences in quantities of products sold, if these are directly linked to the sales under consideration during anti-dumping investigation. An adjustment may also be made for deferred discounts and rebates, if the claim is based on consistent practice in earlier periods before the conduct of the anti-dumping investigation, including compliance with the conditions required to qualify for the discount or rebates;
4) level of trade (wholesale, retail trade, etc.). An adjustment shall be made for differences in levels of trade where, in relation to the distribution chain in the domestic market and export market, it is shown that the export price (including a constructed export price) is at a different level of trade from the normal value and such difference in the levels of trade affects price comparability; this is demonstrated by consistent and distinct differences in levels of trade and prices of the seller in the domestic market of the exporting country. The amount of the adjustment shall be based on the market value of the difference. When an existing difference in levels of trade cannot be quantified because of the absence of the relevant levels of trade in the domestic markets of the exporting country, or due to other circumstances, a special adjustment may be granted;
5) transport, insurance, handling, loading, preparation for trade (container terminal charges, customs agent fees, etc.) and ancillary service costs. An adjustment shall be made for differences in the directly related costs incurred for conveying the product concerned from the premises of the exporter to an independent buyer (where such costs are included in the prices charged). For the purpose of comparison of prices at the ex factory level, transport costs, if they are included in the normal value and/or export price, must be excluded;
6) packing. An adjustment shall be made for differences in the directly related packing costs for the product in question;
7) credit. An adjustment shall be made for differences in the cost in any credit granted for the sales under consideration, provided the differences (more favourable credit conditions) determine the customer's decision to take the credit and therefore affect the comparability of prices;
8) after-sales costs. An adjustment shall be made for differences in the direct costs of providing warranties, guarantees, technical assistance and services as established by this Law or contracts of sale. No adjustments shall be made, however, if the costs of guarantee are no related to the period under investigation;
9) commissions. An adjustment shall be made for differences in commissions paid by the exporter to the trader or trade agent (calculated for each sale under consideration);
10) currency conversions. Normally, when the price comparison requires a conversion of currencies, such conversion must be made. Conversion shall be made using the rate of exchange on the date of sale. Normally, the date of sale shall be the date of invoice, but the date of contract, purchase order or order confirmation may be used if these more appropriately establish the material terms of sale. When a sale of foreign currency on forward markets is directly linked to export sale into the customs territory of the Republic of Lithuania of the product in question, the rate of exchange in the forward sale shall be used. Fluctuations in exchange rates shall be ignored and exporters shall be granted 60 days to reflect a sustained movement in exchange rates during the investigation period;
11) other factors. An adjustment may also be made for differences in other factors if it is demonstrated that they affect price comparability. Having regard to the fact that some of the factors listed in paragraph 2 of this Article may coincide, the Institution must ensure that any duplication when making adjustments is avoided, in particular in relation to discounts, rebates, quantities and level of trade.
3. Adjustments may be made on the initiative of the Institution or upon the application of the country interested in adjustment. If the country interested in adjustment indicates in its application that the normal value and the export price are not on a comparable basis, it must present to the Institution evidence that difference in various factors affect prices or their comparability.
4. In the case where the products are exported to the customs territory of the Republic of Lithuania not from the country of origin but from an intermediate country, a comparison shall be made between the export price and the normal value of the product in the exporting country. If the product is merely transhipped through the intermediate country or if such product is not produced in that country, or there is no comparable price for it in that country, the export price shall be compared with the normal value in the country of origin of the product.
Article 7. Determination of the Dumping Margin
1. After a comparison between the normal value and export price has been made according to Article 6 of this Law, the existence of margins of dumping in the course of the investigation period shall be established.
2. An individual dumping margin shall be established in respect of every exporter under investigation, except in cases specified in paragraph 7 of this Article.
3. The dumping margin shall be established:
1) on the basis of a comparison of a weighted average normal value with a weighted average of prices of all export transactions in relation with such products to the customs territory of the Republic of Lithuania or
2) by a comparison of individual normal values and individual export prices to the customs territory of the Republic of Lithuania on a transaction-to-transaction basis.
4. A normal value established on a weighted average basis may be compared to prices of all individual export transactions to the customs territory of the Republic of Lithuania, if the Institution establishes that there is an export pattern which differs significantly among different purchasers, regions or time periods, and if the above-specified methods - a comparison of a weighted average with a weighted average (subparagraph 1 of paragraph 3 of this Article) or a comparison on a transaction-to- transaction basis (subparagraph 2 of paragraph 3 of this Article) does not reflect the full degree of dumping being practised.
5. Where dumping margins vary, a weighted average dumping margin may be established.
6. The provisions of this Article shall not preclude the use of sampling in accordance with Article 16.
7. Where imports of a product originating in a non-market economy country are subject to anti-dumping investigation, a single margin of dumping shall be established for all products in question originating from the above country, imported into the customs territory of the Republic of Lithuania, save for the cases provided in paragraph 8 of this Article. The margin of dumping shall be calculated by comparison of the general normal value established for the country and the single export price established for the country.
8. An individual dumping margin may also be established for a separate exporter from a non-market economy country if:
1) individual normal value may be established for the exporter in accordance with the provisions of paragraph 21 of Article 4 of this Law. In this case the individual dumping margin shall be calculated for the exporter by comparison of the individual normal value established for him and the individual export price;
2) the exporter from a non-market economy country (not referred to in paragraph 21 of Article 4 of this Law) presents sufficient evidence to prove that neither the management of the enterprises, nor the production of the product in question or prices are subject to State regulation. In this case the individual dumping margin shall be established on the basis of a comparison of the single normal value established for the entire non-market economy with the individual export price established for the exporter in compliance with the requirements of Article 5 of this Law.
9. The individual dumping margin may be determined according to the provisions of paragraph 8 of this Article only in the case where this is requested by the producer or exporter of the product in question. The application must be filed within the time-limit set by the Institution for replies according to paragraph 2 of Article 15 of this Law, indicating valid reasons for determining the individual dumping margin, whereas the applicant shall provide conditions for the Institution for verification checks of the submitted evidence. Where the application is filed by the importer on behalf of the producer or exporter, the application shall be deemed to lack sufficient substantiation and performance of individual calculations shall be refused.
Article 8. Determination of Injury
1. Actual injury suffered by the domestic industry due to dumped imports shall be demonstrated by a negative effect on its economic factors and indices.
2. A determination of injury to the domestic industry for purposes of paragraphs 3, 4 and 5 of this Article shall be based on the submitted evidence and shall involve an examination of:
1) the volume of the imports of the product in question into the customs territory of the Republic of Lithuania and the effect of the imports on prices in the domestic market for like products;
2) the impact of the imports of the product in question on the state of the domestic industry.
3. Where the impact of imports of the product in question is subject to investigation, a determination must be made whether there has been a significant increase, either in absolute terms or relative to production of the like product or relative to consumption in the customs territory of the Republic of Lithuania.
4. With regard to the effect of the imports of the product in question on prices, consideration shall be given to:
1) whether there has been significant price undercutting by the imports of the product in question as compared with the price of a like product of the domestic industry, or
2) whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which would otherwise have occurred, to a significant degree.
5. The examination of the impact of the imports of the product in question on the domestic industry shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the domestic industry (economy sector), including:
1) the fact that the domestic industry is still in the process of recovering from the effects of past dumping or subsidisation;
2) actual and potential decline in output and sales by the domestic producers of the like product, also in profits, market share, productivity, return on investments, or utilisation of capacity;
3) factors affecting the prices of the like products in the customs territory of the Republic of Lithuania;
4) the magnitude of the actual margin of dumping;
5) actual and potential effects on cash flow, stocks of the like product, employment of workers (directly engaged in the production of the product), their wages, growth in the production of the like product, or ability to raise capital or investments, etc.
6. Where imports of the product in question from more than one country are simultaneously subject to anti-dumping investigations, the effect of such imports shall be cumulatively assessed (without investigating the effect of the imports of the product in question separately from each country) only if it is established that:
1) the margin of dumping established in relation to the imports from each country and the volume of imports of the product in question from each country is not negligible (according to paragraph 6 of Article 12 of this Law);
2) a cumulative assessment of the effects of the imports is appropriate in light of the conditions of competition between imported products and the conditions of competition between imported products in question and the conditions of competition between the imported products in question and the like products of the domestic industry. In other cases the effects of imports shall be assessed separately for each country.
7. In the circumstances specified in paragraph 5 of Article 9 of this Law injury from dumping may be found to exist even where a major portion of the domestic industry is not injured provided it is proved that:
1) there is a concentration of dumped imports of the product in question into such an isolated market and
2) such imports are causing injury to the producers of all or not less than 80% of the production of the like product within such market.
8. When determining the injury caused to the domestic industry, the Institution must also examine known factors other than the dumped imports which at the same time are injuring the domestic industry so as to ensure that injury caused by these other factors is not attributed to the dumped imports, including:
1) the volume and prices of imports of the product in question not sold at dumping prices;
2) contraction in demand or changes in the patterns of consumption of the like product;
3) restrictive trade practices of, and competition between, third country and the domestic industry;
4) developments in technology and the export performance and productivity of the domestic industry, etc.
9. The effect of the dumped imports of the product in question shall be assessed in relation to the production of the like product when available data permit the separate identification of that production on the basis of such criteria as the production process, producers' sales and profits. If such separate identification of that production is not possible, the effects of the dumped imports shall be assessed by examination of the production of the narrowest group (that includes the like product)) for which the necessary information can be provided.. The provisions of this paragraph shall be applied also in the cases specified in paragraph 5 of Article 9 of this Law.
10. A determination of a threat of injury shall be based on facts and not merely on allegation, conjecture or remote possibility. The change in circumstances which would create a situation in which the dumping would cause injury must be clearly foreseen and imminent.
11. In making a determination regarding the existence of a threat of injury to the domestic industry, consideration should be given to :
1) a significant rate of increase of dumped imports into the customs territory of the Republic of Lithuania indicating the likelihood of substantially increased imports;
2) sufficient freely disposable capacity of the exporter or an imminent substantial increase in such capacity indicating the likelihood of substantially increased dumped exports into the customs territory of the Republic of Lithuania. In such case account must be taken of the availability of other export markets to absorb any additional exports;
3) whether imports of the product in question are entering at prices that would, at a significant degree, depress prices of the domestic industry in the domestic market or prevent price increases which otherwise would have occurred, and would probably increase demand for further imports of the product in question;
4) stock-levels of the product under consideration, etc.
12. The list of factors specified in paragraphs 2, 4, 5, 8 and 11 is not full. No one of the factors listed above by itself can necessarily give decisive guidance in making a definitive decision, but the totality of the factors must lead to the conclusion that further dumped exports are imminent and that, unless antidumping duty is imposed, injury to the domestic industry will occur in future.
Article 9. Definition of The domestic industry
1. The term "domestic industry" shall be interpreted as referring to the domestic producers of the like product, if the collective output of the producers of the like product, expressing support for the application requesting initiation of antidumping investigation (except in cases established in paragraphs 2 and 5 of this Article) constitutes:
1) more than 50% of the total production of the like product of the producers who have expressed their support for or opposition to the conduct of the investigation; and
2) more than 25% of the total production of the like product produced in the Republic of Lithuania.
2. When the Lithuanian producers are related to the exporters and importers of the product in question or are themselves importers of such product, the term "domestic industry" shall be interpreted as referring to the rest of the producers of the like product and the output of production of the products in question of the above producers shall be disregarded when determining whether the output of production of a certain group of producers constitutes major proportion of the total production of the products in question in the customs territory of the Republic of Lithuania.
3. In the circumstances specified in paragraph 2 of this Article, where there are grounds for believing that the related producers shall behave differently from non-related producers, the producer shall be deemed to be related to the exporter or the importer only in the cases if:
1) one of them directly or indirectly controls the other;
2) both of them are directly or indirectly controlled by a third natural or legal person;
3) together they directly or indirectly control a third natural or legal person.
4. The producer, exporter, importer shall be deemed to control another producer, exporter, importer when the former is legally or operationally in a position to exercise restraint or direction over the latter.
5. In exceptional circumstances (where there is a concentration of imports of the product in question into a certain isolated market and the imports are causing injury to the producers of such isolated market) the customs territory of the Republic of Lithuania may, for the investigation of the production of the like product, be divided into two or more markets. The producers within each market may be regarded as a separate domestic industry if:
1) the producers within such market sell all or not less than 80% of their production of the like product;
2) the total demand in that market for the like product is not met or is met by less than 20% by producers of the like product located elsewhere in the customs territory of the Republic of Lithuania.
6. Where the domestic industry (according to paragraph 5 of this Article) has been interpreted as referring only to the producers in a certain market in the customs territory of the Republic of Lithuania, the producers or exporters of the product in question shall be offered an opportunity, pursuant to the provisions of Chapter Five, to offer undertakings to increase the prices or to cease exports of the product in question to the area in question of the customs territory of the Republic of Lithuania at dumped prices.
7. In the case established in paragraph 6 of this Article, when evaluating the State interest of the antidumping measures, special account shall be taken of the interests of the region. If an adequate undertaking is not offered promptly, or the situations set out in Article 25 of this Law apply, an antidumping duty (including a provisional antidumping duty) may be imposed in respect of the product in question imported into the customs territory of the Republic of Lithuania as a whole.
CHAPTER THREE
ANTI-DUMPING INVESTIGATION
Article 10. Initiation of Proceedings
1. An investigation to determine the existence, effect and degree of any alleged dumping shall be initiated upon the receipt by the Institution of a written application on behalf of the domestic industry in accordance with the requirements of Article 11 of this Law and make a decision to conduct the investigation.
2. The application may be lodged on behalf of the domestic industry as it is defined in paragraph 3 of Article 12 of this Law by a natural or legal person or the associations representing them.
3. By way of exception, where the investigation may not be initiated on the application by the domestic industry, the investigation may be initiated on the application by the ministry/ministries to whose sphere of government production of the product in question has been assigned or on the application lodged by the associations representing the domestic industry, in which the evidence specified in Article 11 of this Law must be presented.
Article 11. Application to Conduct the Investigation
1. An application to conduct the investigation shall include evidence of dumping, injury to domestic industry and a causal link between the dumped imports of the product in question and injury to domestic industry. The application for the conduct of investigation shall be lodged with the following information attached as separate annexes (if the information is available to the applicant):
1) the applicant's (applicants'), if he is a natural person, name, surname, address and telephone number (if the applicant is a legal person - the name, code of the enterprise, address of the seat and telephone number); the list of the known Lithuanian producers of the like product (or associations of the producers of the like product in Lithuania);
2) where the applicant's output of the like product does not constitute the volume specified in paragraph 1 of Article 9 of this Law, the applicant shall be entitled to appeal to other domestic producers of the like product requesting they support in writing the application to initiate the investigation. Notices of support which are submitted to the Institution together with the application must specify the volume of each of the supporting producer's production of the like product in the customs territory of the Republic of Lithuania in physical and value terms as well as indicating the proportion of the total domestic production of the like product in the customs territory of the Republic of Lithuania this constitutes;
3) a complete description of the product in question (including physical, technical, chemical characteristics and properties of consumption) as well as the code number according to the Combined Nomenclature of the Republic of Lithuania of Common Customs Tariffs and Foreign Trade Statistics;
4) the names of the countries of export of the product in question;
5) names and addresses of all known foreign producers and/or exporters of the product in question;
6) names and addresses of all known importers of the product in question;
7) information necessary for determining the normal value according to of prices at which the product in question is sold when destined for consumption in the market of the country of origin and/or export or where the normal value, in the applicant's opinion, is subject to be determined according to any other procedure specified in Article 4 of this Law - information required for determining the normal value according to a certain procedure.
8) information necessary for determining the export price;
9) information on changes in the volume of imports of the product in question, the effect of those imports on prices of the like product on Lithuania's market and consequent impact of the imports on the domestic industry (as demonstrated by relevant factors and indices having a bearing on the state of the domestic industry, such as those listed in Article 8 of this Law).
2. In addition to information specified in paragraph 1 of this Article, the application requesting initiation of investigation shall be accompanied by other documents justifying the application. A non-confidential summary of the application requesting initiation of investigation shall also be submitted.
3. Unless a decision has been made to initiate an investigation, publishing of the received application seeking initiation of investigation shall be avoided, however, after receipt of the application and in the case specified in paragraph 3 of Article 10 of this Law before proceeding to initiate the investigation the Institution shall through the diplomatic channels notify the governments of the countries of origin or export of the product in question.
Article 12. Examination of the Application Seeking Initiation of Investigation
1 After receipt of the application seeking initiation of investigation the Institution shall ascertain whether the application has been filed on behalf of the domestic industry as specified in paragraph 3 of this Article, whether the application complies with the requirements of Article 11, examine the evidence provided in the application and determine whether there is sufficient evidence to justify the initiation of investigation. Where at least one of the specified conditions is not met, the Institution shall notify the applicant thereof and set the time limit for rectifying the shortcomings. In case of failure by the applicant to rectify the shortcomings within the time limits fixed by the Institution or if the additionally submitted evidence is not sufficient to justify the initiation of anti-dumping investigation, as established in paragraph 1 of Article 11 of this Law, the Institution shall make a decision not to initiate the investigation.
2. If the applicant's volume of production of the like product does not account for the volume established in paragraph 1 of Article 9 of this Law and he is unable for objective reasons to present a sufficient degree of evidence of written support by other domestic producers of the like product of his application seeking initiation of investigation, the Institution may, within 30 calendar days from the receipt of the application seeking initiation of investigation, question other domestic producers of the like product whether or not they support the application.
3. The application shall be considered to have been made on behalf of the domestic industry if the collective output of the applicant and the producers of the like product constitutes the proportion of production established in paragraph 1 of Article 9 of this Law.
4. No investigation shall be initiated when it is established upon the examination of the application and having questioned domestic producers, that:
1) the application may not be considered filed on behalf of the domestic industry since under the conditions stipulated in paragraph 3 of this Article it is supported by an insufficient number of domestic producers of the product in question;
2) the evidence of dumping, injury and causal link between the imports of the product in question and injury to the domestic producers is insufficient to justify the initiation of investigation;
3) the margin of dumping and/or the volume of dumped imports (actual or potential) is negligible according to paragraph 5 of this Article.
5. The margin of dumping shall be considered to be de minimis if this margin is less than 2% expressed as a percentage of the export price of the product in question. The volume of dumped imports shall be regarded as negligible if at least one of the conditions specified below is satisfied:
1) the volume of import of the product in question from a particular country is found to account for less than 3% of imports of the like product in the customs territory of the Republic of Lithuania, unless countries which individually account for less the 3% of the imports of the product in question, collectively account for over 7% of imports of the product in question in the customs territory of the Republic of Lithuania;
2) the volume of imports of the product in question from a particular country represents a market share of below 1%, unless countries which individually account for less than 1% of imports of the product in question, collectively account for 3% or more of the consumption of the like product in the customs territory of the Republic of Lithuania.
6. In the cases other than those established in paragraph 5 of this Article, the margin or dumping and the volume of imports of the product in question shall be more than negligible.
Article 13. Making a Decision to Initiate the Investigation
1. Having examined the received application and the accompanying information, the Institution shall within 45 calendar days from the receipt of the application make a decision to initiate or to refuse initiating the investigation and notify the applicant/applicants thereof.
2. Where the application requesting initiation of investigation has been filed by the domestic producers and it meets the requirements laid down in paragraph 1 of Article 11 of this Law and provided not a single condition stipulated in paragraphs 4 and 5 of Article 12 this Law is satisfied, the Institution shall make a decision to initiate the investigation, otherwise the application shall be rejected.
3. Having made a decision to initiate the investigation, the Institution shall publish a notice thereof in the Information Supplement to "Valstybės žinios" (Official Gazette) according to the procedure established in Article 39 of this Law and notify the known interested parties. Without breaching the provisions of Article 41 of this Law, the text of the application must be submitted to all known exporters of the product in question and governments of the exporting countries. Where there is a large number of producers or exporters of the product in question, the text of the application requesting initiation of investigation may be submitted only to the governments of the exporting countries or relevant trade or business associations.
4. The investigation shall not suspend or restrict the procedures of customs clearance of the product in question.
Article 14. Period of Investigation
Normally, the investigation shall be completed within one year. As necessary, upon the decision of the institution, the investigation period may be extended for newly discovered due cause, however, for not longer than 6 months.
Article 1 …
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