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Determining the Weighted Average Margin of Dumping

Trade Briefs

Determining the Weighted Average Margin of Dumping

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Dumping is viewed as price discrimination between the domestic and export markets and takes place where the export price of a product is lower than the normal value of such product. The normal value is usually determined with reference to the domestic selling price in the exporting country. Adjustments have to be made to the normal value and export price for differences that affect prices at the time that such prices are set, including differences in terms and conditions of sale, taxations, levels of trade and quantities. Finally, the margin of dumping is defined in South African legislation as the ‘extent to which the normal value is higher than the export price, after adjustments have been made for comparative purposes’.

This trade brief sets out to determine how the weighted average margin of dumping may be determined, i.e. the single margin of dumping applicable to several models or types of a product under investigation where only a single anti-dumping duty is to be imposed on all models. This will typically be the case where the South African Revenue Services (SARS) cannot, for administrative or other reasons, distinguish between different models for the levying of anti-dumping duties. This would include products such as tyres, where the margin of dumping may vary greatly between different sized tyres, and bolts and nuts, where each individual bolt and nut may have a different margin of dumping.


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