RESTRICTED
WORLD TRADE G/ADP/Q1/ISR/6
G/SCM/Q1/ISR/6
ORGANIZATION 2July1997
(97-2761)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofISRAEL1
toQuestions from TURKEY2
Thefollowing communication, dated 30June1997, hasbeenreceived from thePermanent
Mission ofIsrael.
_______________
Israel would liketopreface itsreplies tothequestions posed bythePermanent Mission of
Turkey, withthefollowing general remark.
Asstated inthelastmeeting oftheCommittee onAnti-Dumping Practices heldon1May1997,
Israelismakingeveryefforttocompletethelegislativeprocesswhichwillreviseitscurrentanti-dumping
legislation inorder tobring itintoconformity withtheWTO Anti-Dumping Agreement. Ashasbeen
stated inprevious documents, (seeG/ADP/W/297, G/ADP/W/298) theIsraeli authorities inpractice,
when dealing withanti-dumping investigations follow theprovisions oftheAnti-Dumping Agreement.
Q.1. According toyourlegislation, canaprice offer beconsidered asexport price andestablish
thebasis ofafaircomparison?
Reply
Inthelightofthedefinition of"export price" which appears inSection 4oftheTrade Levies
Law-1991, (hereinafter "theLaw") itispossible touseaprice offer asabasis forestablishing an
export price.
Itshould benoted thattheterm"export price" isdefined inthelawsimilarly inother national
legislations.
Inpractice, theanswer tothisquestion would verymuch depend onthecircumstances oftheparticular
case. Forexample, inthecaseofatender, itisforeseeable thata"price offer" could beconsidered
an"export price" forthepurposes ofafaircomparison.
1G/ADP/N/1/ISR/2-G/SCM/N/1/ISR/2 .
2G/ADP/Q1/ISR/5-G/SCM/Q1/ISR/5.
./.G/ADP/Q1/ISR/6
G/SCM/Q1/ISR/6
Page2
Q.2. Within themeaning ofArticle 2.4oftheWTO Anti-Dumping Agreement howdothe
competent Israeli authorities taketheeconomic conditions prevailing intheexporting
country andtheconditions ofsales within thedomestic market intoconsideration?
Within thisframe, what istheapproach ofthecompetent Israeli authorities towards
inflation, interests andexchange rates?
Reply
Section 14ofIsrael'sLawstates: "Forpurposes ofcomparing theexport price tothenormal
price, theprices shallbecompared under similar commercial conditions, taking intoaccount different
terms ofsale,including differences inindirect taxes, aswellasanyother factor likely toaffect the
comparison."
Asexplained inourgeneral comments above, untilthelegislative process iscompleted, the
authorities inpractice apply Section 14oftheLaw, inlinewiththeprovisions assetforthinArticle 2.4
(and2.4.1) oftheA-DAgreement.
Regarding fluctuations ofexchange rates, theauthorities doinfactfollow theprovisions of
Article 2.4.1 oftheAgreement.
Q.3. Within themeaning ofArticle 3.5oftheWTO Anti-Dumping Agreement, inananti-
dumping investigation, howdothecompetent Israeli authorities assess thefactors, inter
alia,changes inthepatterns ofconsumption -competition between theforeign anddomestic
producers -productivity ofthedomestic industry, other than theimports subject to
investigation injuring thedomestic industry?
Reply
Aswehavestated indocument G/ADP/W/299 theLawdoesnotelaborate onthevarious
elements oftheinjury requirement tobeshown inananti-dumping procedure. Inlightofthisfact,
inpractice theauthorities, when making adetermination ofinjury, andcausality follow theprovisions
ofArticle 3.5andexamine other known factors which atthesame timemayalsobecausing injury
tothedomestic industry.
Q.4. Ifthedomestic industry doesnothavetheproduction capacity tomeetthemarket demand,
what would bethepossible effect ofananti-dumping duty imposed ontheproducts of
acertain country onthefollowing:
- market prices;
- competitiveness;
- market penetration.
Reply
Wewould liketonotethatthisquestion anditsrelevance tothereview process ofIsrael's
legislation isunclear.
Itshould however, beexplained thatSection 24oftheIsraeli Lawenables theimplementation
ofthe"lesser dutyrule" asprovided forunder Article 9.1oftheWTO Anti-Dumping Agreement.
thepresent policy, istocalculate the"lesser duty" ataratewhich issufficient tobring thedumped
foreign prices toanon-injurious price levelwhich isintended toneutralize theinjury tothedomestic
industry.