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WEDNESDAY, MAY 26, 1976
BRITAIN'S ANTI-DUMPING ACTION JUSTIFIED
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THE DIRECTOR OF COMMERCE AND INDUSTRY, THE HON. DAVID JORDAN, TODAY (WEDNESDAY) EXPLAINED WHAT DUMPING, UNDER THE RULES OF THE GENERAL AGREEMENT OF TARIFF AND TRADE, MEANS AND WHY THE BRITISH GOVERNMENT HAD TAKEN ANTI-DUMPING ACTION AGAINST HONG KONG IN RESPECT OF A RAINCOAT MADE HERE WHICH WAS BEING EXPORTED TO BRITAIN.
MR. JORDAN GAVE THE EXPLANATION IN A REPLY TO DR. THE HON. S.Y. CHUNG IN THE LEGISLATIVE COUNCIL TODAY.
LAST WEEK, THE BRITISH GOVERNMENT ANNOUNCED THAT IT WOULD IMPOSE AN ANTI-DUMPING DUTY OF 1.50 POUNDS-STERLING ON A HONG KONG-MADE RUBBERISED RAINCOAT IMPORTED INTO BRITAIN ON THE GROUND THAT IT WAS BELOW +FAIR MARKET PRICE+.
MR. JORDAN SAID THAT UNDER GATT RULES DUMPING MEANS EXPORTING AT A PRICE LESS THAN THE COMPARABLE PRICE FOR A SIMILAR PRODUCT SOLD IN THE DOMESTIC MARKET- OR WHERE THE PRODUCT IS NOT SOLD IN THE DOMESTIC MARKET, AS OFTEN HAPPENS IN THE CASE OF HONG KONG, DUMPING IS DEFINED AS SELLING BELOW WHAT IS REGARDED AS THE +FAIR MARKET PRICE+, WHICH TAKES ACCOUNT OF THE DIRECT COST OF PRODUCTION, OVERHEADS AND PROFITS.
HE POINTED OUT THAT IT WAS GENERALLY TRUE THAT HONG KONG NANUFACTURERS COULD NOT AFFORD TO DUMP BUT IT WAS PERFECTLY POSSIBLE FOR THEM TO DO SO WITH A PART OF THEIR PRODUCTION.
IF, FOR EXAMPLE, A MANUFACTURER SOLD A NEW PRODUCT AT COST PRICE PLUS A SMALL PROFIT AND CHARGED ALL THE OVERHEADS OF HIS FACTORY TO HIS ESTABLISHED PRODUCTS THEN TECHNICALLY HE WAS DUMPING, WITHIN THE TERMS OF THE GATT DEFINATION AND OF THE UNITED KINGDOM LEGISLATION, MR. JORDAN SAID.
IN THE PRESENT CASE, HE ADDED, THE BRITISH GOVERNMENT WAS SATISFIED, AFTER CARRYING OUT INVESTIGATIONS IN HONG KONG IN NOVEMBER LAST YEAR, THAT THE HONG KONG MANUFACTURERS OF RELATIVELY SMALL QUANTITIES OF RUBBERISED RAINCOATS FOR WOMEN WERE SELLING BELOW +FAIR MARKET PRICES+ AS DEFINED AND THAT THIS JUSTIFIED ANTI-DUMPING ACTION.
CONSEQUENTLY, AN ADDITIONAL DUTY OF 1.50 POUNDS-STERLING WAS IMPOSED ON THIS RAINCOAT.
MR. JORDAN CONTINUED +HOWEVER, THERE IS A LET-OUT IN THE FORM OF A REFUND OF THE ANTI-DUMPING DUTY SHOULD THE PRICE OF THE RAINCOATS, TOGETHER WITH THE ANTI-DUMPING DUTY, EXCEED HK$46 IN THE CASE OF A SINGLE TEXTURE RAINCOAT OR HK$60 IN THE CASE OF A DOUBLE TEXTURE ONE.
/MR. JORDAN