Korea Experience in Sunset Reviews Korea Trade Commission

2 1.Basic Structure 2.Legal Framework 3.Criteria for Determination 4.KTC Sunset Reviews Cases 5.Major Characteristics in KTC’s Cases Table of Contents

3 1. Basic Structure  Concept Any anti-dumping duty shall be terminated on a date not later than 5 years from its imposition (or from the date of the most recent review), unless the authorities determine… that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury (ADA 11.3) –“Sunset review” : a review that is initiated before the termination date to determine whether there is likely continuation or recurrence of dumping and injury According to ADA 11.3, KTC also determines whether to terminate the measure or to extend it within the longest 5 years from its imposition (or from the date of the most recent review)

4  Organizations in charge of Sunset Review : KTC, MOFE  Procedure Request for Sunset Review by domestic industry (within 2 months) Determine whether to initiate the investigation or not * MOFE can initiate the investigation on its own initiative (within 6 months; extendible upto 4 months) KTC Determines and Submits the results to MOFE (within 1 month; extendible upto 20 days) MOFE’s Determination 1. Basic Structure (cont.)

5 2. Legal Framework  Article 11 of WTO Anti-Dumping Agreement  Article 56 of the Customs Act  Article 70 of the Enforcement Decree of the Customs Act  Article 20 of the Enforcement Regulation of the Customs Act  KTC’s Handbook

6 3. Criteria for Determination  Continuation or Recurrence of Dumping Continuation of Dumping –When dumping margin exists above de-minimis (2%) Likelihood of Recurrence of Dumping –As a result of examining the trend of import quantity after imposing AD duty, import quantity is none or substantially diminished →Adopt dumping rates of original investigation or those of the most recent review No Likelihood of Continuation or Recurrence of Dumping –During the POI (or POR), dumping margin is under de-minimis, and the trend of import quantity is continuing or increasing

7  Continuation or Recurrence of Injury Continuation of Material Injury –Trends of quantity and price of dumped imports → the trends of quantity of dumped imports → the trends of price of dumped imports → price comparison between dumped imports and domestic like products –Production of domestic industry, sales, market share, profits, investments, utilization of capacity, inventories, employment, wages etc. 3. Criteria for Determination (cont.)

8  Continuation or Recurrence of Injury (cont.) Likelihood of Recurrence of Injury –Dumped imports exporting country’s supplying capacity toward Korea –Factors to be considered:  likelihood of capacity enlargement in the exporting country or idle production capacity  inventories and likelihood of inventories increasing in the exporting country  trend of exports toward other countries  likelihood of conversion of facilities of other products to them of products under investigation  other countries’ control over imports of the dumped imports 3. Criteria for Determination (cont.)

9  Continuation or Recurrence of Injury (cont.) Likelihood of Recurrence of Injury (cont.) –Comparison of price competitiveness if the AD measures are terminated –Factors to be considered:  likelihood of price undercutting of the dumped imports  price underselling or price suppression of domestic like products caused by dumped imports 3. Criteria for Determination (cont.)

10 4. KTC Sunset Review Cases (1987 – )  Number of Sunset Reviews Comparison between the number of original investigations and that of sunset reviews ※ the number of cases : country basis, % : ratio compared to the number of affirmative determination of original investigation

11  Extension Period per Sunset Review  Case which lasted for the longest period through sunset reviews Pre-Sensitized Printing Plate from Japan : 5 years (original) → 3 years (the 1st sunset review) → 3 years (the 2nd sunset review) * This measure was terminated for the reason of no-injury determination in the 3rd sunset review 4. KTC Sunset Review Cases (1987 – ) (cont.)

12 5. Major Characteristics in KTC’s Cases  The organization of acceptance of application and determination of initiating investigation in sunset review differs from that of original investigation  KTC tends to significantly consider the degree of self- restructuring efforts of applicants in addition to continuation and likelihood of recurrence of dumping and injury

13 5. Major Characteristics in KTC’s Cases (cont.)  KTC considers the time of AD measure’s extension as an substantial factor for determination  The longer the period of the AD measure is, the more burden of proof to applicants the KTC tends to impose

14 5. Major Characteristics in KTC’s Cases (cont.)  Normally the periods of AD measures of sunset reviews are shorter than those of the original investigation (mostly 2 or 3 years) As a result, the AD measures are more often examined by the KTC  Too good operating performance of domestic industry tends to be considered as a proof of non-likelihood of recurrence of material injury

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