G/ADP/AHG/W/197  
 
11 April 2013  
(13-1891)  Page: 1/4  
Committee on Anti-Dumping Practices 
Working Group on Implementation 
 Original: English  
 
 ARTICLE 2.2 – EXPORT PRICE TO A THIRD COUNTRY  
OR CONSTRUCTED NORMAL VALUE 
PAPER BY JAMAICA 
The following communication, dated 11 April 2013, is being circulated at the request of the 
Delegation of Jamaica. 
_______________ 
  
1  INTRODUCTION 
In response to the call of the Committee on Anti -Dumping Practices on 24 October 2012 for papers 
on topics for discussion at the Working Group on Im plementation Meetings including Article 2.2 of 
the Anti-Dumping Agreement (“ADA”), Jamaica is pleased to submit the following paper describing 
the practice of the Anti-dumping and Subsidies Commission, Kingston, Jamaica (“the 
Commission”) in this regard. Jamaica thanks the Members for the guidance that has been afforded by this Committee’s deliberations and for the opportunity to contribute to the discussion.   
 
2  ARTICLE 2.2 OF THE ANTI-DUMPING AGREEMENT  
Article 2.1 of the ADA prescribes that:  
 
For the purpose of this Agreement, 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. 
Jamaica affirms its use of domestic prices in the exporting country as the basis for determining 
normal value.   
 Article 2.2 recognizes situations where the investigating authority is presented with domestic 
prices which are unreliable and offers two options for arriving at the normal value. They are: 
 
1. Export price to an appropriate third country; and 2. Constructed normal value using a reasonable amount for selling, general and 
administrative expenses and profits in the exporting Member. 
 Article 2.2 provides that: 
 
When there are no sales of the like product in the ordinary course of trade in the 
domestic market of the exporting country or when, because of the particular market 
situation or the low volume of the sales in the domestic market of the exporting 
country
2, such sales do not permit a proper comparison, the margin of dumping shall 
be determined by comparison with a comparable price of the like product when exported to an appropriate third country, provided that this price is representative, or 
with the cost of production in the country of origin plus a reasonable amount for 
administrative, selling and general costs and for profit. G/ADP/AHG/W/197 
 
- 2 - 
 
  _______________________ 
2  Sales of the like product destined for consumption in the domestic market of the exporting country 
shall normally be considered a sufficient quantity for the determination of the normal value if such sales constitute 5 per cent or more of the sales of the product under consideration to the importing 
Member, provided that a lower ratio should be ac ceptable where the evidence demonstrates that 
domestic sales at such lower ratio are nonetheles s of sufficient magnitude to provide for a proper 
comparison .” 
 
3  JAMAICAN LEGAL FRAMEWORK 
The domestic legal framework in Jamaica for the administration of anti-dumping measures is the 
Customs Duties (Dumping and Subsidies) Act 1999 (“the Act” or “CDDSA”) and companion Regulations
1 which incorporate and give effect to th e provisions of the WTO Agreement on the 
Implementation of Article VI of the General Ag reement on Tariffs and Trade (“the Anti-dumping 
Agreement” or “ADA”).  Under the Act, the Anti-dumping and Subsidies Commission (“the Commission”) was established 
as the investigating authority with responsibility for administering trade remedies. Section 4 of the 
Act provides that the Commission shall carry out on its own initiative or on the request of any person, investigations in relation to the dumping of goods [or the giving of a subsidy affecting 
goods] and to make such reports and recommendatio ns in relation to such goods as it considers 
necessary.  
In the Regulations, normal value is referred to as “Fair Market Price.” 
 Calculation of Normal Value – Use of Designated Country (Third Country) Export Price:-   
Regulation 4  offers guidance and interpretation for the use of third country export prices for 
normal value calculations in the particular situations in which it is permitted, as follows:  
(1) Where the conditions described in paragraph (2) apply, the fair market price shall 
be calculated as follows-  
(a) on the basis of prices of like goods sold by producer in any country other 
than Jamaica designated by the Commission (hereinafter referred to as the 
designated country) for use in that country and adjusted to reflect- 
(i) the prices to Jamaica; and (ii) differences in terms and conditions of sale, taxes, and any factors 
which affect price comparability; or 
(iii) the cost of production as described in regulation 5; or 
(b) if sufficient information is not availa ble, on the basis of the price of like 
goods that are produced in any designated country or the country from which 
the goods were shipped directly to Jamaica, adjusted to affect price 
comparability.    
(2) The conditions referred to in paragraph (1) are that- 
 (a) goods sold to an importer in Jamaica are shipped directly from a country the 
government of which has a monopoly or substantial monopoly on its export trade; 
 (b) domestic prices are determined by that government; and 
 (c) there is reason to believe that th e prices are not based upon a competitive 
market. 
                                               
1 The Customs Duties (Dumping and Subsidies) (Determi nation of Fair Market Price, Material Injury and 
Margin of Dumping) Regulations, 2000.   G/ADP/AHG/W/197 
 
- 3 - 
 
  4  THE PRACTICE OF THE COMMISSION 
The Commission has observed that in the Agreemen t, there is no preference indicated between 
third country export price and constructed normal  value as methods for determining normal value 
when it cannot be determined on the basis of domestic prices in the exporting country in the 
circumstances outlined in Article 2.2. The ADA si mply gives the investigating authority the choice 
of two alternatives:    
1. Using comparable prices of the like product when exported to an appropriate third 
country, provided that the prices are representative; or 
2. Constructing the normal value by cost of production plus a reasonable amount for 
selling, general and administrative costs and for profits. 
 
In interpreting the law and the circumstances of the case that presented itself, the Commission has utilised export price to an appropriate third country to determine the normal value. It has 
assessed situations presented to it and has completed to Final Determination, one investigation 
where the normal value could not be arrived at using prices in the exporting country.    
To initiate an investigation, a written application, also called a complaint is filed with the 
Commission by or on behalf of the Jamaican industry. The complaint is examined to ensure that it is properly documented. Proper documentation requir es data on domestic prices in the country of 
export or, where the domestic industry has reason to recommend the use of other methods of 
calculating normal value, it may do so providing reasons and indicative data.  
 The Commission is mindful that the application is required to contain such information as is 
reasonably available to the Applicant. However, there also needs to be sufficient evidence in the 
application to justify the initiation of an investigation and the Commission must balance these two concerns. Some applicants find it challenging to obtain market information in the exporting 
Member from which to derive the normal value and may argue that this information is not 
reasonably available to them. Other applicants are able to utilise the services of consultants for market research in other jurisdictions to obtain the information. The applicants must make a reasonable effort to supply sufficient information to form a reasonable basis for deriving the 
normal value. 
 The Commission verifies and can modify based upon its own checks the normal value calculations 
in the complaint as appropriate based upon its own checks in order to reach a determination of 
whether to initiate. The record is examined to ascertain whether the domestic price in the exporting country is unreliable and is to be rejected as the basis on which to calculate normal 
value if any of the conditions in in Article 2.2 exists. 
 Upon initiation, exporters and importers are asked for information via questionnaires. Information is requested on the cost of production, elements required to construct value and sales made at or 
below cost. Information is also requested where relevant, on the value and volume of export sales 
of the like product to other export markets. Th e responses are factored into the normal value 
calculation in the preliminary and final determination stages.  
 
Particular Market Situation  
As noted above, the Commission has completed one investigation in which the information on the 
exporting country exemplified a "particular market  situation". The goods were exported from a 
country that fit the description of a non-market economy.   
Various market indicators were examined in order to test the extent of market orientation in the 
exporting country, such as:  
 The degree of State involvement in: 
 
o The economy at the macro level;  
o The firm activities at the micro level.  The Commission examines not only the 
macro-economy in the exporting Member but also conditions prevailing in the sector. G/ADP/AHG/W/197 
 
- 4 - 
 
  o The determination of prices including activity related to the country’s currency 
exchange rate; 
o The aggregate output of the economy (that is, the State’s contribution to Gross 
Domestic Product).  
 
 Classification(s) of the country’s stage of development made by multinational institutions 
including the World Trade Organization (WTO), International Monetary Fund (IMF) and 
World Bank (WB) 
 
 Practices of other investigating authorities for be st practices, relevant opinions, trends and  
 
 Other factors which may also be relevant. 
 Parties and persons interested in the investigation are afforded the opportunity to rebut the 
Commission’s finding that the economic realities in the exporting country render it a non-market 
economy.    
The exporting country is given the opportunity to  rebut the non-market economy designation.   
 Choosing an Appropriate Third Country or Countries with Representative Export Price(s):-  
If prices are deemed unreliable, the Commission may choose as a surrogate country an 
appropriate third country with representative export price(s) on the basis that it is similar to the exporting Member in terms of factors such as the following: 
 
 Level of development (Gross National Income per capita).
2   
 
 Volumes and relative amounts of production and consumption of the good being 
investigated. Domestic sales in the surrogate country used must be sufficient.3   
 
 The level of exports of the good being investigated. 
 
 Other appropriate characteristics. 
 
To arrive at a conclusion as to which third country is used as a surrogate, the Commission 
examines criteria noted above for countries that in its estimation resemble the Member in question. The Commission then selects the surrogate (third) country to use for determination of 
normal value.
4   
 To help to ensure fairness and natural justice, the parties involved in the investigation, including the exporters of the subject good and domestic prod ucer(s) of the like good are permitted in their 
responses to questionnaires or other submissions, to suggest appropriate third countries from 
which normal value may be derived.  
The Commission has taken the decision on normal value based upon the above outlined 
methodology.   
 
__________  
                                               
2 The Commission relies on institut ions such as the WB and IMF to classify and compare countries 
according to stages of development. 
3 This typically means that sales in the surrogate co untry must be at least 5 per cent of export sales 
from the exporter in the matter; 
4 It is possible to have data which is required missing from the data available for the selected third 
country. It is thought to be prudent to select an al ternate surrogate country from which crucial data which is 
missing from the data set available for the pr eferred surrogate country might be obtained.