The GCC anti-dumping draft law, expected to be implemented by the UAE, has set up a mechanism under which foreign firms dumping products locally will pay punitive charges in cash or in kind.

The draft law, expected to be issued in the near future, was prepared by the GCC Economic and Financial Cooperation Committee and approved by the GCC states, Dr. Mohammed Khalfan bin Kharbash, UAE Minister of State for Financial and Industrial Affairs, said earlier.

It was reviewed by the UAE National Committee for WTO issues, he added.

The draft law says GCC customs departments will collect punitive charges along with the customs duties. The amount of charge will be specified case by case.

In investigations of dumping complaints, the draft law assigned the national federal body to specify the normal value of commodity in question, based on values of similar paid or payable commodities directed for consumption in the exporting country.

Dumping margins will be specified on the basis of the price of a similar commodity to be exported to a third country, if it has no equivalent in the local market, said the draft law.

The impact of dumping on the local industry shall be investigated through the examination of actual and probable drop in sales, revenues, market share, productivity and investment returns.

Also by factors affecting local prices, volume of dumping, actual and probable problems of cash flow, stocks, employees, wages, growth and ability to collect capital and investments.

The federal body will also check import volumes into the local market, whether any other markets abroad are available to absorb the surplus and whether the prices of such commodities affect demand on the exported commodities.

Investigations will only be initiated upon written complaints to the federal body from the local industry or its representative.

Concrete evidences of dumping and damages, applicant's name, address, volume and production value of similar commodities must be included.

In exceptional cases, the federal body may initiate investigations without receiving any complaint.

In the course of investigation, the federal body shall report the full text of the complaint to foreign exporters, producers and the concerned authority.

Investigations may take one full year but not more than 18 months. The federal authority may seek additional information in wriiten replies from local producers, importers, foreign exporters and producers.

Investigations of dumpings may last for 12 months but not less than 6 months and may last for three years in cases of damages.

The federal body takes an initial decision within 60 days - and not beyond 180 days - that a dumping has taken place. A final decision could be taken within 180 days of the initial decision.
The federal body is entitled to undertake temporary measures to prevent damages during the course of investigations.