Normal Value
Normal value in Global Commerce Policy
In this regard, normal value is: a key concept in determining whether dumping has taken place. GATT Article VI condemns the introduction of products into the commerce of another member at less than normal value. The entries on trade policy are here. Article 2 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the Anti-dumping Agreement) sets out the meaning of “normal value” and the procedures for its determination. The entries on trade policy are here. A product is considered dumped, or introduced at less than normal value, if its price, when being exported in the ordinary course of trade, is less than the comparable price for the like product when destined for consumption in the exporting country. The entries on trade policy are here. If there are no sales in the domestic market of the exporting country or if these sales do not permit a proper comparison, the export price to an appropriate and representative third country may be used. The entries on trade policy are here. A third method is using the cost of production in the country of origin plus a reasonable amount for administrative, selling and general costs and for profits. Precise rules are available if the product is found not to have been exported in the ordinary course of trade, or for trade that may have been short term only. The entries on trade policy are here. If no export price is available, or if it appears that the export price is unreliable because of an association 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 sold to an independent buyer. The comparison between export price and normal value must be made under similar conditions, with allowance for unavoidable differences. See also anti-dumping measures.[1]
Normal valuein the wold Encyclopedia
For an introductory overview on international trade policy, see this entry.
Resources
Notes and References
- Dictionary of Trade Policy, “Normal value” entry (OAS)
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