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Attached for your information and guidance is a copy of the order of the Honorable Secretary of Finance in Anti-Dumping Case No. 2-97, entitled: "In the matter of protest against the importation of Hubless Cast Iron Soil Pipes and Fittings from Canada" filed by Filipino Pipes and Foundry Corp.

Adopted: 27 May 1997



" Attachment"

IN THE MATTER OF PROTEST AGAINST THE IMPORTATION OF HUBLESS CAST IRON SOIL PIPES AND FITTINGS FROM CANADA


FILIPINO PIPES AND FOUNDRY CORP.

Protestant

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This is in reference to the anti-dumping protest filed by the Filipino Pipes and Foundry Corporation (FPFC) against the importation of hubless cast iron soil pipes and fittings from Canada; a member of Canada-U.S. Free Trade Area Agreement. Particularly, the protest was directed against the importation of hubless cast iron soil pipes and fittings consisting of bends, cleanouts, plugs, reducers, coupling, elbows, hubs, crosses, tees, sweeps of all types and sizes by ASA Metal Products, Inc.

FPFC claims that the importation of the subject article from Canada at prices lower than its fair value is causing injury to the local industry.

After examination of the supporting documents presented by FPFC and the importers of subject article, this Department certified that a prima facie case of dumping exists so as to warrant a full investigation thereof by the Tariff Commission pursuant to Section 301 of the Tariff and Customs Code, as amended.

Pending investigation at the Tariff Commission, parties to the protest submitted a joint manifestation, the full text of which is hereunder reproduced:

WHEREAS, the dumping case under consideration in the Tariff Commission stemmed when the respondent ASA Metal Products, Inc., imported hubless pipes and fittings from Canada on April 15, 1994 purposely to be used as pattern and samples for comparison as the company will be engaged in the manufacture of hubless pipes locally.

WHEREAS, in view of this importation protestant Filipino Pipes and Foundry Corporation filed an anti-dumping protest on September 1, 1994 pursuant to Section 301 of the Tariff and Customs Code with the Department of Finance against Canada.

WHEREAS, on the basis of the submission of the parties, a prima facie case of dumping was established. A directive dated December 19, 1994 was issued to the Commission (sic) of Customs not to release any pending or subsequent shipment of the said articles unless a bond in an amount equal to twice the estimated dutiable value thereof is given, and instructed the Tariff Commission to conduct investigation including public hearing to determine whether such importation caused injury (sic) to the local industry.

WHEREAS, in the public hearing held on March 01, 1996, Commissioner Anthony A. Abad informed the parties that the Commission is giving the opportunity for them to discuss the possibility of amicably setting the case or a price undertaking wherein the parties get together to consider the price adjustment on the imported product and have the case dismissed.

WHEREAS, in response to the offer for amicable (sic) or a price undertaking, the parties met and discussed the matter having in mind the early adjudication of the case and more importantly, for the best interest of the Association, Philippine Metal casting Association, which are (sic) both members in good standing.

WHEREAS, the respondent agreed that the fair value of hubless pipes and fittings be upgraded and the protestant, in turn, is willing to have the case withdrawn.

WHEREAS, the parties agreed that the fair value of hubless pipes and fittings be upgraded from 94 cents per kilo to $2.40 per kilo CIF.

WHEREAS, if the agreement is approved together with the upgraded valuation, protestant is withdrawing the anti-dumping protest filed against the importation of hubless pipes and fittings from Canada and the protestee would refrain from importing therefrom. Any violation of this agreement (sic) the protestant is given the right to file necessary motion in Court or Administrative Body.

WHEREFORE, this agreement which is duly signed by the parties and witnesses, (sic) is being submitted to the Honorable Commission for approval. Should any provision thereof appear not acceptable to the Commission and an alternative proposal is made thereon, the parties should be informed so that counter proposal thereto can be submitted for further consideration.

July 12, 1996, Quezon City, Philippines

(Sgd.) Filipino Pipe and Foundry Corporation    (Sgd.) ASA Metal Products, Inc

Commenting on the above joint resolution, the Tariff Commission, in a 2nd Indorsement dated 23 September 1996 recommended the approval of the same pursuant to Section 201 of the Tariff and Customs Code, as amended.

A review of the records of the case reveals that the protest was filed on 01 September 1994; that the importation being protested were effected on April 15, 1994; and that after a prima facie determination, the case was forwarded to the Tariff Commission for formal investigation on 19 December 1994. All of the above occurred before the effectivity of R.A. 7843. Consequently, it is but proper that evaluation of the protest should be governed by the provisions of the old anti-dumping law and other pertinent issuances.

In view of the foregoing and considering that under the old procedure compromise between parties is allowed particularly pursuant to E.O. 1073 as well as the provision of the Administrative Code which encourages amicable settlement of disputes which reads:

"Section 10.  Compromise and Arbitration. — To expedite administrative proceedings involving conflicting rights or claims and obviate expensive litigations, every agency shall, in the public interest, encourage amicable settlement, compromise and arbitration."

the joint resolution between the parties hereto is hereby approved. Accordingly, the instant protest is hereby dismissed, subject to the terms and conditions contained in the joint manifestation of the parties.

Let copies of this decision be furnished the Protestant, the Protestee, the Tariff Commission, the Bureau of Customs, the Bureau of Internal Revenue, the Department of Trade and Industry, the Embassy of Canada, the National Economic and Development Authority, the Department of Agriculture and the Bureau of Printing for its publication in the Official Gazette and local newspaper of general circulation.

SO ORDERED

March 10, 1997