EU ANTI-DUMPING LAWSUIT AGAINST VIETNAM - WHAT CAN BE LEARNT FROM THE FOOTWEAR CASE?

Graduation thesis
EU ANTI-DUMPING LAWSUIT AGAINST VIETNAM - WHAT CAN
BE LEARNT FROM THE FOOTWEAR CASE?
ACKNOWLEGEMENTS
First and foremost, I would like to express my special thanks to my
supervisor, Phan Thi Hien Giang, MSCs., for her professional and
inspirational suggestions, corrections and advice in bringing this thesis to
completion.
I am also grateful to Hanoi Foreign Trade University, especially those
teachers at the English Faculty, for giving me the opportunity to study in such
an academically stimulating program in Bachelor of Business English. The
course has provided me with comprehensive knowledge and useful skills in
business and foreign trade so that I am able to fulfill this thesis and have the
courage to embark on the challenging journey of life-long learning.
My sincere thanks are due to the World Bank Library and National
Library, the librarians, staff and the administrative office of the Hanoi Foreign
Trade University for providing me the valuable materials and assistance.
I am deeply indebted to my close friends, my relatives and my
boyfriend who have always supported and encouraged me to finish the thesis.
Last but of course not least, I would like to share this moment of
happiness and sense of achievement with my parents and my brother, who
have always stood by my side and rendered me enormous support and
unfaltering love during the whole process of my study.
Le Thanh Hai - A4 - BBE - K41 1
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Le Thanh Hai - A4 - BBE - K41 2
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ACKNOWLEGEMENTS................................................................................1
INTRODUCTION............................................................................................5
Background to the study....................................................................................................5

Objective of the study........................................................................................................6
Research questions.............................................................................................................6
Structure of the thesis.........................................................................................................6
Scope of the study..............................................................................................................7
Research methodology.......................................................................................................7
Chapter 1...........................................................................................................9
LITERATURE REVIEW................................................................................9
1.1. Dumping in international trade...................................................................9
1.1.1. Definition.................................................................................................................9
1.1.2. Impacts on importing countries and international trade........................................10
1.1.2.1. Impacts on importing countries.....................................................................10
1.1.2.2. Impacts on international trade .......................................................................10
1.2. Anti-dumping law........................................................................................11
1.2.1. WTO's anti-dumping law.......................................................................................12
1.2.1.1. Determination of dumping.............................................................................13
1.2.1.2. Anti-dumping measures.................................................................................17
1.2.2. EU's anti-dumping law...........................................................................................21
1.2.2.1. Determination of dumping.............................................................................21
1.3. Comparison between WTO and EU anti-dumping laws..........................28
Chapter 2.........................................................................................................32
THE FOOTWEAR CASE.............................................................................32
2.1. Overview of the Vietnam footwear industry.............................................32
2.1.1. The importance of Vietnam’s footwear industry..................................................32
2.1.2. Footwear exports to the European Union..............................................................37
2.2. Overview of the EC's anti-dumping petition.............................................38
2.3. The petitioner's arguments.........................................................................40
2.3.1. Market economy treatment ...................................................................................41
2.3.1.1. Business decisions..........................................................................................43
2.3.1.2. Accounting.....................................................................................................44
2.3.1.3. Assets and 'carry over'....................................................................................45

2.3.1.4 Legal environment and currency exchange....................................................45
2.3.2. Individual treatment...............................................................................................46
2.3.3. Vietnam's selling under the normal value.............................................................47
2.3.4. Injury .....................................................................................................................48
2.3.4.1. Macro-economic indicators...........................................................................49
2.3.4.2. Micro-economic indicators............................................................................51
2.4. The subject country's arguments...............................................................52
2.4.1. Market-economy treatment ...................................................................................54
2.4.2. Level of ‘injury’ to EU producers.........................................................................56
2.4.3. Inappropriate choice of surrogate country.............................................................60
2.4.4. Effects on interest of the Community....................................................................61
2.5. Summary......................................................................................................63
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On the 4th of October, 2006, the EC made their final decision on leather
footwear anti-dumping case against Vietnam. An official anti-dumping
duty of 10% has been imposed on uppers leather footwear from Vietnam
in the period of 2 years...................................................................................65
Chapter 3.........................................................................................................66
RECOMMENDATIONS AND LESSONS LEARNT.................................66
3.1. Conclusions and recommendations............................................................66
3.1.1. Diversify the markets outside the EU....................................................................68
3.1.2. Diversify the product range...................................................................................71
3.1.3. Enhance model of business transfer......................................................................72
3.1.4. Improve competitiveness.......................................................................................73
3.2. Lessons learnts.............................................................................................74
3.2.1. Fully understanding on international trade law concerning dumping issue.........74
3.2.2. Strengthen market economy in Vietnam...............................................................76
3.2.3. Domestic enterprises must be well-prepared ........................................................78
3.2.4. Create good public relation....................................................................................79

CONCLUSION...............................................................................................81
BIBLIOGRAPHY..........................................................................................82
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INTRODUCTION
Background to the study
In recent years, a great number of bilateral and multilateral trade
agreements have been signed between Vietnam and other countries and
international organizations, which, among other things, have provided greater
access for Vietnamese goods to the global market. However, several kinds of
Vietnam exports have been accused of being sold at dumped prices in some
foreign markets. In particular, anti-dumping tariff was imposed on Vietnam by
the European Union on glutamate in 1998, by Poland on gas lighter in 2000,
by Canada on garlic in 2002, by the US on catfish in 2002, shrimp (2003),
woodwork (2004) and again by the EU on bicycles in 2004. On July 2005, the
European Commission officially lodged yet another dumping lawsuit against
Vietnamese footwear products exported to the EU market. Such series of
lawsuits has raised massive concern for Vietnamese producers, as it has had a
negative impact on international economic integration process of Vietnam, as
well as shown that Vietnam has not adequately prepared for a bigger "playing
field".
Active integration inevitably entails proactive study about foreign markets.
Nevertheless, international markets in general, and the EU market in particular
have different regulations and trading practice that requires deep understanding
to defend oneself from implicit risks. Although dumping and anti-dumping
suits are not something new to Vietnam as it was several years ago, and
Vietnam has been moving on a very steep learning curve, it is still necessary for
Vietnamese enterprises to deepen their understanding by further analysis if they
are to avoid anti-dumping petition as they break into markets abroad.
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Graduation thesis
Objective of the study
This graduation paper, therefore, aims to furnish Vietnamese exporters and
concerned government agencies with a structured approach to anti-dumping
lawsuits by contributing a closer look at anti-dumping regulations and
experience from the footwear case. With this study, Vietnamese exporters will
hopefully be able to gain the essential ‘weapon’ to defend themselves when
there is a complaint filed against them, and more importantly, to avoid being
challenged and getting exhausted in the daunting investigation and lawsuit
process.
Research questions
The key question is: "How can Vietnamese exporters prove that Vietnam
leather footwear is not being dumped into the EU market?" To seek answer to
the question, the following sub-questions will be addressed:
- What are the differences between antidumping law of WTO and that of the
EU?
- How did the EC accuse Vietnam of dumping leather footwear in the EU
market?
- What were the arguments used by Vietnam in the footwear lawsuit?
- What are the lessons learnt for Vietnam for future dumping and antidumping
lawsuits?
Structure of the thesis
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To achieve the above objectives, the thesis is divided into of three
chapters. Chapter 1 lays the theoretical ground for the paper by defining the
two concepts: dumping and anti-dumping, and presenting different perspective
of anti-dumping according to GATT/WTO, and the EU. Chapter 2 will then
move on with an actual case study: the footwear case. It begins with an
overview of the footwear industry in Vietnam, and then provides a detailed

description and analysis of the footwear dispute procedure, the arguments
used by two sides: the EU and VN. Finally, the last chapter will conclude the
paper with some recommendations for settling other dumping disputes in the
future; for avoiding anti-dumping lawsuit; and avoiding negative
consequences from the case.
Scope of the study
Dumping and anti-dumping lawsuits are a very broad topic. However,
this study only focuses on a particular case: the VN - EU dispute on leather
footwear. This will serve as an empirical but structured approach that
Vietnamese current and potential export enterprises need to familiarize with if
they are to survive and succeed in the international market.
Research methodology
The report draws heavily on desk research, with data and information
obtained from the Official Journals of the European Union, Action Aids
Vietnam, the Vietnam Leather and Footwear Association, official and
unofficial reports, various comments and figures from published studies by
experts in the field, newspapers, magazines, and the Internet. This is
supplemented by primary information and experience gathered in the field
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verification exercise by the EU investigators to the footwear enterprises in
Vietnam in the summer of 2005.
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Chapter 1
LITERATURE REVIEW
1.1. Dumping in international trade
1.1.1. Definition
According to article 2, part 1 of the agreement on implementation of
article VI of the general agreement in tariffs and trade 1994, "a product is to

be considered as being dumped, i.e. introduced into the commerce of another
country at less than its normal value, if the export price of the product
exported from one country to another is less than the comparable price, in the
ordinary course of trade, for the like product when destined for consumption
in the exporting country". A question is raised: what are the reasons of
dumping activities in international trade?
In today’s global game of intense competition, dumping helps enterprises
easily break into and then dominate other markets. However, there are
differences between the aim of big companies and small ones, developed
countries and developing ones. In respect of small companies and developing
countries, their products are less competitive and they have to dump in an
effort to sell their goods. With regard to big firms and developed nations, they
sell at a low price on importing markets to gain market share, furthermore, to
kick out competitors, and gradually dominate the importing markets. Once
breaking into importing markets, exporters are able to completely control
them by low a price that is the target of dumping activities. Secondly, in case
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countries are shortage of foreign currencies, they may foster export by
lowering goods' prices. However, dumping may happen beyond the control of
producers, exporters in some cases, for instance: bottle-neck, supply exceeds
demand, damageable inventory, etc.; they have to sell goods at lower prices to
recover their capital.
In short, there are many purposes to dump, but whatever purposes they
have, dumping still causes bad effects on importing countries, others nations,
and international trade.
1.1.2. Impacts on importing countries and international trade
1.1.2.1. Impacts on importing countries
Nowadays, dumping activities are becoming popular in the context of
international trade. Eliminating fair competition to break into markets,

dumping has turned into an obstacle against the trend of trade liberalization. In
the short term, consumers gain benefit from dumping because of cheap price.
However, this is an unfair competition activity; it can seriously damage
domestic production of importing countries in the long term. As a result,
nations around the world try to fight against dumping in an attempt to prevent
or minimize dumped goods on their markets in case the imports of that type of
goods have caused or threaten to cause damage to a substantial part of the
domestic industry.
1.1.2.2. Impacts on international trade
In the short term, dumping helps transaction of goods on international
trade increase in quantity. Normally, dumping enterprises intend to take over
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foreign markets, i.e. competing with domestic producers or importers from
other countries for market share. As selling price is lower than equilibrium
price on the market, in accordance with the law of supply and demand, there
will be a new equilibrium point, and an increase in quantity demanded that
will be met by exporters. Therefore, an increase in quantity demanded will
lead to an increase in quantity supplied, that means international trade will
develop.
In the long term, when dumping enterprises control markets, and then
raise selling prices, quantity demanded will decrease gradually, and so does
trading volume. Otherwise, domestic enterprises better their competitive
ability; vie with foreign exporters for market share. If government of import
country imposes anti-dumping tariff, import goods will no longer be attractive
for low price, so import quantity will reduce.
Dumping always bring benefit for consumers as lower price, wide
selection of cheap and diversified import goods. On the contrary, domestic
producers suffer losses. Moreover, workers will lose their jobs because of
reducing production, or bankruptcy. If the interests of consumers are bigger

than the ones of home producers and the unemployed, the society still
benefits. On making decision of whether to levy anti-dumping tariff or not,
many nations consider this element.
Dumping and anti-dumping measures are controversial and complicated
issues that result in strained international trade relations, hinder WTO's target
in establishing a transparent, equal international business environment.
1.2. Anti-dumping law
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As analyzed above, if the export price of a product exported from one
country to another is less than a comparable price, in the ordinary course of
trade, for the like product when destined for consumption in the exporting
country. Therefore, by imposing anti-dumping measures against foreign
exporters, importing countries want to prevent exporters from selling goods at
price below its normal value. The main purpose of the imposition of anti-
dumping measures is to protect the domestic economy and home production
from unfair competition, furthermore, to create fair competition environment,
a vital factor for trade liberalization. Consequently, anti-dumping measures
are said to be necessary, as they set up the legal framework in which all
players enjoy fair competition. Contrary to the above purposes, domestic firms
can strategically use this measure to target only foreign firms they view as
competitive rivals, some nations abuse anti-dumping measures to protect
domestic production which lead to commercial dispute. As a result, it is
necessary to study dumping and anti-dumping law to take part in international
trade.
1.2.1. WTO's anti-dumping law
The Agreement on Implementation of Article VI of GATT 1994,
commonly known as the Anti-dumping Agreement, is a suggestive document
for nations to refer to when they set up their own anti-dumping law. However,
WTO's members have to obey Anti-dumping Agreement.

The Anti-dumping Agreement includes:
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- Regulations on content: detailed provisions about methods and criteria
for determination of dumping, injury, causal link between the dumped imports
and the alleged injury.
- Regulations on procedure: provisions about investigation and anti-
dumping duties imposition.
- Regulations on dispute settlement among WTO's members concerning
anti-dumping issues.
- Regulations on competence of Committee on Anti-dumping Practices
1.2.1.1. Determination of dumping
A dumping case will be determined by comparing the export price and
the normal value of the product.
Export price
Export price is the selling price from country of origin or exporting
country to importing country. There are two ways of calculating export price:
- Export price is the transaction price between producer or exporter of
exporting country and importer of importing country.
- The export price may be constructed on the basis of the price at which
the imported products are first resold to an independent buyer, or if the
products are not resold to an independent buyer, or not resold in the condition
as imported, on such reasonable basis as the authorities may determine.
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To apply the first method, there are two conditions: Export price is
existing (product is exported under sales contract between producer/exporter
and importer); export price is reliable (price is quoted in a normal sales
contract). Documents like commercial invoice, bill of lading, letter of credit...
can be used to specify export price. Nevertheless, the export-import activities

are not always performed under the basis of a foreign trade sales contract (for
instance: export is to move goods from headquarter in one country to its
agents in another one, barter contract). Accordingly, there will be no
transaction price to define export price. Or price quoted in the contract is
unreliable because of association or a compensatory arrangement between the
exporter and the importer or a third party. In these cases, the second method
will be used.
The normal value
"The normal value is the selling price of the like product on exporting
market". According to article 2.6 Anti-dumping Agreement "like product"
("produit similaire") shall be interpreted to mean a product which is identical,
i.e. alike in all respects to the product under consideration, or in the absence of
such a product, another product which, although not alike in all respects, has
characteristics closely resembling those of the product under consideration.
The Agreement provides three methods to calculate a product’s “normal
value”.
- The first is the main one which is based on the price in the exporter’s
domestic market. In case of dependent relations between producer and
distributor in the exporting country (so producer can offer cheaper price to
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distributor), the authorities of the importing country may take selling price
offered by distributor to the first independent importer to be the normal price.
- The other two methods are alternatives. they are used when there is no
domestic price of the like product in the expiring country for the following
reasons: a) When there are no sales of the like product in the ordinary course
of trade in the domestic market of the exporting country; b) product is sold in
the domestic market in special condition; c) the volume of the sales in the
domestic market of the exporting country is low (less than 5% in comparison
with the quantity of the like product sold in the importing market), however,

in case it is proved that the quantity of the sold product in domestic market is
enough to compare with the export price reasonably, the investigating can use
the selling price of the like product to define the normal value. The two
alternatives are:
+ A comparable price of the like product when exported to an appropriate
third country, provided that this price is representative
+ the “constructed value” of the product, which is calculated on the basis
of the cost of production, plus selling, general, and administrative expenses,
and profits. Costs shall normally be calculated on the basis of records kept 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 reasonably reflect the costs associated with the production and
sale of the product under consideration. Authorities shall consider all available
evidence on the proper allocation of costs, including that which is made
available by the exporter or producer.
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If the like product is exported from a non-market economy (the selling
price and input price are set by the government), the above methods are not
used to determine the normal value. Under this circumstance, the Anti-
dumping Agreement allows the authorities to use the selling price or
production cost of a third country to calculate the normal value of the product
under consideration.
The ordinary course of trade
There is no specific definition of what sales of the product in the ordinary
course of trade are. however, the Anti-dumping Agreement defines a specific
circumstance in which sales of the like product in the domestic market of the
exporting country or sales to a third country at prices below per unit (fixed and
variable) costs of production plus administrative, selling and general costs
may be treated as not being in the ordinary course of trade. The like product

may be disregarded in determining normal value only if the authorities
determine that such sales are made within an extended period of time
(normally one year and no less than 6 months) in substantial quantities and are
at prices which do not provide for the recovery of all costs within a reasonable
period of time. If prices which are below per unit costs at the time of sale are
above weighted average per unit costs for the period of investigation, such
prices shall be considered to provide for recovery of costs within a reasonable
period of time, the sales is considered to be in the ordinary course of trade.
Calculating the dumping margin
A fair comparison shall be made between the export price and the normal
value to define dumping margin. The comparison must obey these rules:
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- This comparison shall be made at the same level of trade (for e.g.: ex-
factory/wholesale/retail price). Normally, the ex-factory price is chose to
compare.
- Sales are made at as nearly as possible the same time.
- differences in conditions and terms of sale, taxation, levels of trade,
quantities, physical characteristics, and any other differences which are also
demonstrated to affect price comparability shall be considered.
Three methods are provided to make comparison:
- A comparison of a weighted average normal value with a weighted
average of prices of all comparable export transactions
- A comparison of normal value and export prices on a transaction-to-
transaction basis
- a weighted average basis may be compared to prices of individual
export transactions if the authorities find a pattern of export prices which
differ significantly among different purchasers, regions or time periods, and if
an explanation is provided as to why the above two methods can not take these
differences into account appropriately.

1.2.1.2. Anti-dumping measures
Provisional measures
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Provisional measures aim at preventing injury being caused during the
investigation. They can be brought into effect in the investigation period,
provided that: a) a preliminary affirmative determination has been made of
dumping and consequent injury to a domestic industry; b) the authorities judge
such measures necessary to prevent injury being caused during the
investigation; c) an investigation has been initiated, a public notice has been
given to that effect and interested parties have been given adequate
opportunities to submit information and make comments. Provisional
measures may take the form of:
- A provisional duty
- A security - by cash deposit or bond - equal to the amount of the anti-
dumping duty provisionally estimated
- Withholding of appraisement provided that the normal duty and the
estimated amount of the anti-dumping duty are indicated.
Provisional measures must not be greater than the provisionally estimated
margin of dumping. Among the above measures, the Anti-dumping
Agreement encourages countries to apply the second one. In fact, almost all
nations use this measure because of its simple procedure.
Price undertakings
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According to the Anti-dumping Agreement, during the procedural
process, the authorities and producers, exporters can reach an agreement in
price undertakings. "Price undertakings are commitments under which
producers; exporters will revise their prices or cease exporting dumped goods.
Undertakings are voluntary arrangements among producer, exporter, and

importer".
Price undertakings shall not be sought or accepted from exporters unless
the authorities of the importing country have made a preliminary affirmative
determination of dumping and injury caused by such dumping. Price
undertakings may be suggested by the authorities of the importing country, but
no exporter shall be forced to enter into such undertakings. Normally, the
authorities of importing country will accept price undertakings offered by
exporter, if the undertakings can remove the injury caused by dumped imports
If an undertaking is accepted, the investigation of dumping and injury shall be
continued if the exporter so desires or the authorities so decide. In such a case,
if a negative determination of dumping or injury is made, the undertaking
shall automatically lapse.
Anti-dumping duties
If goods is found to be dumped and causing injury for domestic industry,
the decision whether or not to impose anti-dumping duty, and the decision
whether the amount of the anti-dumping duty to be imposed shall be the full
margin of dumping or less are to be made by the authorities of the importing
country. The Anti-duping Agreement suggests that the duty be less than the
margin if such lesser duty would be adequate to remove the injury to the
domestic industry.
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When an anti-dumping duty is imposed in respect of any product, such
anti-dumping duty shall be collected in the appropriate amounts in each case,
on a non-discriminatory basis on imports of such product from all sources
found to be dumped and causing injury, except imports from those sources
from which price undertakings have been accepted.
The amount of the anti-dumping duty shall not exceed the margin of
dumping, but the duty can be less than the margin if it can remove the injury
to the domestic market.

If a product is subject to anti-dumping duties in an importing country, the
authorities shall promptly carry out a review for the purpose of determining
individual margins of dumping for any exporters or producers in the exporting
country who have not exported the product to the importing country during the
period of investigation, provided that these exporters or producers can show
that they are not related to any of the exporters or producers in the exporting
country who are subject to the anti-dumping duties on the product. Such a
review shall be carried out on an accelerated basis, compared to normal duty
assessment and review proceedings in the importing country. No anti-dumping
duties shall be levied on imports from producers and exporters while the
review is being carried out. The authorities may, however, remain
appraisement and/or request guarantees to ensure that if such a review results
in a determination of dumping in respect of such producers or exporters, anti-
dumping duties can be levied retroactively to the date of the initiation of the
review.
Anti-dumping duty shall be terminated on a date not later than five years
from its imposition. Then interested parties shall have the right to request the
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authorities to examine whether the continued imposition of the duty is
necessary, whether the injury would be likely to continue or recur if the duty
were removed or varied, or both. The review shall be carried out providing
that a reasonable period of time has elapsed since the imposition of the anti-
dumping duty.
1.2.2. EU's anti-dumping law
As early as the foundation of the European Community, its regulations
on dumping and anti-dumping were formed. They are targeted at dumped
imports which cause significant injury to Community producers. If left
unchallenged, dumping gives the third country exporter an unfair competitive
advantage which could be exploited with considerable negative consequences

for the Community industry. These regulations were set up on the basis of the
Treaty establishing the European Community, the Regulations adopted
pursuant to Article 235 of the Treaty applicable to goods manufactures from
agricultural products, proposals from different parties in the Council, opinions
of the European Parliament, especially the Anti-dumping Agreement of the
WTO. The anti-dumping regulations of the European Union have been
amended several times to be in accordance with international regulations and
custom. Existing Community rules were replaced by a new Anti-Dumping
regulation which came into force on 1 January 1995. This in turn was updated
by Regulation 384/96, which came into force on 6 March 1996. The regulation
is then amended in 1998, 2000, and 2002.
1.2.2.1. Determination of dumping
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The European Commission is responsible for investigating complaints
and assessing whether they are justified.
Principle 2, Article 1 of the EU's anti-dumping defines: 'A product is to
be considered as being dumped if its exports to the Community is less than a
comparable price for the like product, in the ordinary course of trade, as
established for the exporting country'
Export price
Basically, the EU legislation prescribes two methods of calculating
export price as mentioned in the WTO's regulations. The export price shall be
the price actually paid or payable for the product when sold for export from
the exporting country to the Community. in cases where there is no export
price or where it appears 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 products are first resold to an independent
buyer, or, if the products are not resold to an independent buyer, or are not

resold in the condition in which they were imported, on any reasonable basis.
In these cases, adjustment 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 Community frontier
level.
Normal value
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In general, the EU's rules of this matter follow the basic requirements of
the WTO, and they are concerned in more detailed. sales of the like product
intended for domestic consumption shall normally be used to determine
normal value if such sales volume constitutes 5% or more of the sales volume
of the product under consideration to the Community, and it is sold in the
ordinary course of trade. When there are no or insufficient sales of the like
product in the ordinary course of trade, the normal value is calculated on the
basis of export price of the like product to a third country or on the
constructed value of the product. A noticeable point in calculating on the basis
of the constructed based on the cost of production in the country of origin plus
a reasonable amount for selling, general and administrative costs and for
profits. If related costs are not reflected in the records kept by producers,
exporters, they will be adjusted or specified on the basis of costs of other
producers, exporters in the same exporting country.
In the case of imports from non-market economy countries, normal value
shall be determined on the basis of the price or constructed value in a market
economy third country, or the price from such a third country to other
countries; or where those are not possible, it shall be on the basis of the price
actually paid or payable in the Community for the like product after being
adjusted to include a reasonable profit margin.
1.2.2.2. Investigating authorities and investigation procedure
Investigating authorities

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According to EU Regulations, the European Commission, Ministerial
Council, Member States and Court of law have the right to conduct the
investigation to impose anti-dumping measures.
 European Commission
The EC plays the most important role in enforcing anti-dumping law of
the EU. It is responsible for receiving complaint, initiating an investigation,
carrying out the investigation, imposing the provisional anti-dumping
measures, accepting price undertakings from foreign exporters and petitioning
for applying official anti-dumping tariff. The EC can also suggest Ministerial
Council to approve the amendment of anti-dumping regulation and
promulgate new law on commerce. Within the Commission, the General
Department of Trade is in charge of enforcing anti-dumping law. It includes
about 100 offices specializing in investigating dumping cases and other trade
compensation measures.
 Ministerial Council
The Ministerial Council has competence to approve the imposition of
official anti-dumping tariff petitioned by the Commission. It has the right to
pass the promulgation or amendment of commercial law submitted by the
Commission.
 Member States
Member States engage in carrying out anti-dumping law through
Advisory Committee (or the so-called "the Anti-dumping Committee"),
consisting of representatives of each member, with an officer of the
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Graduation thesis
Commission as chairman. The consultation of Advisory Committee is referred
to by the Commission in every law enforcement procedure. If there is one
member opposes to the Commission's decision, it will become ineffective.

Member States are responsible for collecting anti-dumping tax through their
own customs offices.
 Court
Decision on imposing anti-dumping measures made by the Committee or
the Commission will be appraised by the Court. It will examine whether the
decision making process of the authorities follows the correct procedure. In
fact, EU's Court has handled an anti-dumping petition since 1998, but there is
still no result, which shows the limitation of the appraisement of EU's Court in
anti-dumping mechanism.
Investigation procedure
 The complaint may be submitted to the Commission by the Community
industry. The Community industry often communicates unofficially with
officers of the Commission to determine whether there is sufficient evidence
to justify the initiation of an investigation. The complainant frequently lodges
a draft complaint to the Commission for reference.
 The Community industry
In reality, the association represents the Community industry submitting
the application. The complaint shall be considered to have been made by or on
behalf of the Community industry if it is supported by those Community
producers whose collective output constitutes more than 50 % of the total
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