WORLD TRADE
ORGANIZATIONG/SCM/N/1/CHN/1/Suppl.1
18 February 2003
(03-1009)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 32.6 OF THE AGREEMENT
PEOPLE'S REPUBLIC OF CHINA
Supplement
The following communication, dated 14 February 2003, has been received from the
Permanent Mission of the People's Republic of China.
_______________
With reference to Article 32.6 of the Agreement on Subsidies and Countervailing Measures, I
have the honour to notify the Committee on Subsidies and Countervailing Measures the full text in
English of the following provisional rules of China, P.R. on Countervailing Measures.  They are:
1. Provisional Rules for Initiation of Countervailing Investigation;2. Provisional Rules for Questionnaire in Countervailing Investigation;
3. Provisional Rules for On-the-spot Verification of Countervailing Investigation;
4. Provisional Rules on conduct of Public Hearing in Countervailing Duty Investigation.
Please note that the provisional rules are authentic only in Chinese, and the English
translations of the provisional rules are for reference by WTO Members.G/SCM/N/1/CHN/1/Suppl.1
Page 2
PROVISIONAL RULES FOR INITIATION OF
COUNTERVAILING INVESTIGATIONS
CHAPTER 1 - GENERAL PROVISIONS
Article 1 .  With a view to standardizing the procedures for application for, and initiation of,
countervailing investigations, these Rules are formulated in accordance with “the CountervailingRegulation of the People’s Republic of China”.
Article 2 .  The Ministry of Foreign Trade and Economic Co-operation (hereinafter referred to
as “MOFTEC”) hereby appoints the Bureau of Fair Trade for Imports and Exports to implement these
Rules.
Article 3 .  MOFTEC may initiate a countervailing investigation upon application or on its
own initiative.
CHAPTER 2 - STANDING OF APPLICANT
Article 4 .  Any domestic industry or natural person, legal person or organization representing
a domestic industry (hereinafter referred to as “the applicant”) may file with MOFTEC an application
for a countervailing investigation.
Article 5.  “ Domestic industry” refers to producers, as a whole, of the domestic like product
in the People’s Republic of China, or to those producers whose collective output of the domestic likeproduct constitutes more than 50 percent of the total domestic production of the like product.
Article 6.  In cases in which the collective output of the applicants accounts for less than
50 per cent of the total domestic production of the like product, the application shall be regarded as
being made on behalf of the domestic industry only if it is supported by those domestic producers
whose collective output constitutes more than 50 percent of the total production made by that portionof the domestic industry expressing either support or opposition to the application, and if the
production of the domestic producers expressing support for the application accounts for no less than
25 percent of the total production of the like product.
The production of the applicant shall be included in the calculation to determine the output of
the production of the domestic producers supporting the application as provided in paragraph 1 of thisArticle.
Article 7 .  In cases in which the domestic industry is diversely located and involves a large
number of producers, MOFTEC may examine the standi ng of the applicant by using statistically valid
sampling techniques.
Article 8 .  Any domestic producers that are related to exporters or importers of the subject
merchandise, or are themselves importers of the subject merchandise, shall be excluded from the
consideration of the domestic industry.G/SCM/N/1/CHN/1/Suppl.1
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Article 9 .  The producers located in a specific region of the domestic market may be regarded
as a separate industry if they sell all or almost all of their production of the like product in that market,
and the demand for the like product in that market is not to any substantial degree supplied by the
producers located elsewhere in China.
CHAPTER 3 - APPLICATION
Article 10 .  An application for a countervailing investigation shall be filed in a written form.
The application shall contain a formal request to MOFTEC to initiate a countervailing investigation,
and shall be sealed or signed by the applicant or by his legally authorized representative.
Article 11.  The application for countervailing inve stigation shall contain the following
information together with all relevant supporting materials:
(1) a description of the applicant and known domestic producers;
(2) a complete description of the subject merchandise, the domestic like product and a
comparison between them;
(3) a description of known exporters or foreign producers of the subject merchandise, as
well as any known importers and exporting countries or regions;
(4) a description of the domestic industry;
(5) a description of the alleged subsidy;(6) a description of the alleged injury suffered by the domestic industry;
(7) demonstration of casual link between the alleged subsidy and injury;
(8) any other information that the applicant considers necessary to state.
Article 12 .  The description of the applicant shall include the applicant’s name, address,
telephone number, fax number, post code, its legal representative (if any) and the appropriate contactperson.
In cases in which an attorney is appointed by the applicant, the attorney’s name, his/her
identity and other relevant information shall be specified and the power of attorney shall be provided.
The description of known domestic producers shall include the known domestic producer’s
name, address, post code, and any other relevant contact information.
Article 13.. The description of the subject merchandise shall include the product name, type,
specification, use, market condition and the Customs code of the People’s Republic of China.
The description of the domestic like product shall include the product name, type,
specification, use and market condition;
The comparison between the subject merchandise and the domestic like product shall include
a comparison of physical characteristics, chemical nature, production technology, substitution and
uses.
Article 14 .  The description of known exporters or foreign producers shall include the
exporter or foreign producer’s nationality, name, address and other relevant contact information.G/SCM/N/1/CHN/1/Suppl.1
Page 4
The description of known importers shall include the name, address, post code and other
relevant contacting information.
Article 15 .  The description of the domestic industry shall include the total annual production
of the domestic like product in the last three years prior to the application, the annual production of
the applicant in the last three years prior to the application and its percentage of the total domesticproduction.
Article 16 .  The description of the alleged subsidy shall include information regarding the
existence, nature, and amount of the subsidy in question, as well as an estimated per-unit measure of
the alleged subsidy.
The applicant shall provide the legal documentation of the exporting country or region
pursuant to which the alleged subsidy is granted, and describe the calculation of the per-unit estimated
subsidy.
Article 17 .  The description of the injury suffered by the domestic industry shall include, inter
alia, a description of the type of the injury (material injury, threat of material injury or material
retardation of the establishment of a domestic industry), the fluctuations of the quantity and price of
the imports of the subject merchandise, its effect on the price of the domestic like product, and the
impact of the imports on the relevant economic factors and indices measuring the state of thedomestic industry.
Article 18.  Where an application is filed on the basis of material injury, the applicant shall
provide evidence of the following:
(1) the increase in imports of the subject merchandise either in absolute volume or
relative to the production and/or consumption of the domestic like product in the last
three years prior to the application;
(2) the average price of sales in the domestic market of the subject merchandise and its
pricing trends in the last three years prior to the submission of the application;
(3) the impact of imports of the subject merchandise on the price of the domestic like
product, including any price undercutting of the domestic like product, anydepressing and suppressing effect on the price of the domestic like product and the
impact on price movements of the domestic like product;
(4) the impact of imports of the subject merchandise on the condition of the domestic
industry, including the impact on the output, sales, market share, profits, productivity,return on investment, utilization of capacity, relevant factors affecting the domestic
price, cash flow, employment, wages, growth, ability to raise capital or investment,
and inventories of the domestic industry.  If the subject merchandise is an agricultural
product, evidence pertaining to whether imports have led to increased usage of
government support programs shall also be provided.  To the extent that any of the
factors or indices listed above are inapplicable, the applicant shall provide
explanation of the inapplicability of the factor or index.G/SCM/N/1/CHN/1/Suppl.1
Page 5
Article 19 .  Where an application is filed on the basis of threat to cause material injury, the
applicant shall provide the evidence of injury including the following:
(1) a significant rate of increase in imports of the subject merchandise into the domestic
market or the likelihood of substantially increased importation, including the current
and potential export capacity and inventories of the exporting country or region.
(2) a change in circumstances in the factors and indices listed in subparagraph 4 of
Article 18 of these Rules must be clearly foreseen and imminent.
Article 20 .  Where the application is filed with on the basis of material retardation of the
growth of a domestic industry, the applicant shall not  only provide the evidence listed in Article 19 of
these Rules, but also evidence with regard to th e planned or likely growth of the domestic industry
and the steps for its actual implementation.
Article 21 .  The evidence of injury suffered by domestic industry shall be considered in
relation to the production and pricing information available for the specific domestic like product that
is identified.  If such a comparison is not possibl e, the evidence of injury shall be considered in
relation to the production and pricing information available for the narrowest group or range ofproducts that includes the domestic like product.
Article 22 .  The applicant shall analyze and demonstrate the existence of a causal link
between imports of the subject merchandise and the injury claimed.  In so doing, the applicant shall
also explain the effect or contribution of other factors on the injury claimed, including the quantity
and price of the imports of non-subject merchandise, contractions in demand, changes in the patternsof consumption, trade-restrictive practice of, and competition between, foreign and domestic
producers, developments in technology, the export performance and productivity of the domestic
industry.  If certain of the above-listed factors are inapplicable, the applicant shall provide anexplanation of the inapplicability.
Article 23.  The applicant shall indicate all sources of supporting documents and other
evidence submitted pursuant to this Chapter.
Article 24.  If an application contains confidential materials, the applicant shall submit a
request for confidential treatment, together with a non-confidential summary that is in sufficient detail
to permit a reasonable understanding of the information submitted in confidence.  In case where
submission of a non-confidential summary is impossibl e, the applicant must provide an explanation of
the reasons.
Article 25.  If the supporting documents that are submitted are in a foreign language, the
applicant shall provide both the full text of the foreign language document and a Chinese translation
of the relevant parts of the text.
Article 26.  Any application for initiation of a countervailing duty investigation must be
submitted by the applicant in Chinese print.  To the extent that there is standardized terminology that
is used by the exporting country or region at issue, the standardized terms shall be used in theapplication.G/SCM/N/1/CHN/1/Suppl.1
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Article 27.  In cases in which the applicant requests confidential treatment of information, the
applicant must submit both a confidential and a public version of the application for initiation of a
countervailing duty investigation.  One original and six copies shall be submitted of each of theconfidential version and the public version.  Additional copies of the public version must also be
provided for each known exporting country or region of the subject merchandise. In its discretion,
MOFTEC may limit the number of additional co pies required, but to no less than five.
Article 28.  In addition to a hard copy of the application for initiation of a countervailing duty
investigation and supporting materials, the applic ant shall provide an electronic copy of the same
using the computer software program(s) specified by the Bureau of Fair Trade for Imports and
Exports.
Article 29.  The applicant may submit the application for initiation of a countervailing duty
investigation and any supporting materials to the Bureau of Fair Trade for Imports and Exports by
mail, by hand-delivery, or by any other means specified by the Bureau of Fair Trade for Imports andExports.
Article 30.   Upon receipt of an application for initiation of a countervailing duty investigation
(and any supporting documents) submitted formally by an application, the Bureau of Fair Trade for
Imports and Exports shall sign the date of receipt on the materials.  The date of receipt shall be the
date on which MOFTEC receives the application and supporting materials.
CHAPTER 4 - INITIATION
Article 31.   The Bureau of Fair Trade for Imports and Exports shall determine whether to
initiate a countervailing duty investigation, based on its review of the application for initiation of a
countervailing duty investigation submitted by an applicant, within 60 days from the receipt of the
application and supporting materials.  In cases in which the facts are exceptionally complex, the time
for determination of initiation may be appropriately extended.
Article 32.   The Bureau of Fair Trade for Imports and Exports shall transmit one copy of the
confidential version and one copy of public version of the application for initiation of a countervailingduty investigation and all supporting materials to the State Economy and Trade Commission within 7
days of their receipt. The State Commission of Economy and Trade shall have at least 20 days to
examine the application and supporting materials, and issue its opinion thereon.
Article 33.  After examination, the Bureau of Fair Trade for Imports and Exports may require
the applicant for initiation of a countervailing duty investigation to make amendments to itsapplication or to provide supplemental information.  If the applicant fails to make the required
amendments or to provide the requested supplement al information within the appropriate time limits,
MOFTEC may reject the application for initiation of a countervailing duty investigation.
Article 34.   In any case that an application for initiation of a countervailing duty investigation
is rejected, MOFTEC shall notify the applicant and explain the reasons for the rejection.
Article 35.   After a preliminary examination to determine whether an application for
initiation of a countervailing duty investigation has met all general requirements, MOFTEC shall
invite the governments of the exporting countrie s or regions for consultations with the aim ofG/SCM/N/1/CHN/1/Suppl.1
Page 7
clarifying the issues raised in the application and to seek a mutually agreeable solution.  Such an
invitation for consultation must be made before MOFTEC makes a determination regarding initiation
of a countervailing duty investigation.
An exporting country or region’s refusal to enter into consultations shall not prevent
MOFTEC from continuing with the remaining st eps for determining whether initiation of a
countervailing duty investigation is proper.
Article 36.   If MOFTEC and the governments of the exporting countries or regions reach an
agreement through successful consultations, MOFTEC may decide not to initiate decline to take
further steps in a countervailing duty investigation and, if so, shall notify the applicant of the reasons
therefor.
Article 37 .  In cases where the governments of the exporting countries or regions accept the
invitation for consultations, MOFTEC may extend the time limits for initiation of the countervailingduty investigation in order to accommodate the consultations. The time for consultations , however,
shall be no more than 60 days.
The failure of consultations or the failure to reach an agreement within 60 days shall not
prevent MOFTEC from continuing with the remain ing steps for determining whether initiation of a
countervailing duty investigation is proper.
Article 38 .  MOFTEC shall not publish any public notice if it determines not to initiate a
countervailing duty investigation.  However, MOFTEC  shall notify the applicant of the reasons for
not initiating the countervailing duty investigation.
Article 39 .  The application for initiation of a countervailing duty investigation shall not be
publicized  if MOFTEC determines not to initiate the investigation.
Article 40 .  In the event that MOFTEC decides to initiate a countervailing duty investigation
after examination of the application therefor, MOFTEC shall issue a public notice and also
specifically notify the applicant, known exporters,  importers and other interested organizations, as
well as the governments of exporting countries or regions.
Article 41.   The public notice of initiation of a countervailing duty investigation shall contain
the following information:
1. a summary of the written application for initiation of a countervailing duty
investigation and the results of the examination by MOFTEC;
2. a summary of the materials on which the decision to initiate the investigation is
based;
3. the date of initiation of the investigation;
4. the exporting countries or regions of the product subject to investigation;
5. a description of the product subject to investigation;
6. the time period of the investigation;7. the intention of the investigating authority to conduct on-the-spot verifications of
information submitted in the course of the investigation;
8. the consequences of not responding to questionnaires issued to interested parties or
the governments of exporting countries or regions;G/SCM/N/1/CHN/1/Suppl.1
Page 8
9. the time limits for comments from the interested parties or the governments of
exporting countries or regions;
10. the address of the investigating authorities and means of contact.
Article 42 .  The Bureau of Fair Trade for Imports and Exports shall provide a public version
of the application for initiation of a countervailing duty investigation to the known exporters and the
governments of exporting countries or regions after the publication of the notice of initiation.
Article 43.   The date of initiation of the countervailing duty investigation shall be the date of
publication of the decision to initiate a countervailing duty investigation.
Article 44.   In special circumstances where there is sufficient evidence  confirming the
existence of a subsidy as well as injury to the domestic injury caused by subsidized imports,MOFTEC may, after consultations with the State Economy and Trade Commission, decide to initiate
a countervailing investigation on its own initiative.
If MOFTEC decides to initiate a countervailing duty investigation on its own initiative, the
evidence available to MOFTEC shall meet the requirements specified in Article 3 of these Rules.
Article 45.  The procedures for initiation on MOFTEC’s own initiative shall be in conformity
with the provisions of this Chapter.
CHAPTER 5 - SUPPLEMENTARY PROVISIONS
Article 46.   MOFTEC has the sole responsibility for,  and authority to, interpret these Rules.
Article 47.   These Rules shall enter into force on 13 March 2002.G/SCM/N/1/CHN/1/Suppl.1
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PROVISIONAL RULES FOR QUESTIONNAIRES IN
COUNTERVAILING DUTY INVESTIGATIONS
CHAPTER 1 - GENERAL PROVISIONS
Article 1 .  These Rules are promulgated in accordance with the provisions of  “the
Countervailing Duty Regulation of the People’s Re public of China” with a view to ensuring the
conduct of the countervailing duty investigation by regulating the questionnaire.
Article 2 .  The Ministry of Foreign Trade and Economic Co-operation (hereinafter referred to
as MOFTEC) appoints the Bureau for Fair Trade of Imports and Imports to implement these Rules.
Article 3 .  These Rules are applied to countervailing duty investigations carried out by
MOFTEC by means of the investigation questionnaire in order to determine the existence and amount
of a subsidy.
Article 4.   The investigation questionnaire mentioned in these Rules refers to a written list of
questions issued by MOFTEC to the exporters and producers of the countries (regions) under
investigation, who are designated to respond to the proceedings (hereinafter referred to as “respondingcompany”).
Article 5 .  A responding company shall, according to the requirements of MOFTEC, reply
accurately and completely to all questions listed in  the questionnaire, and submit all information and
materials required therein.
CHAPTER 2 - ISSUANCE OF QUESTIONNAIRE
Article 6 .  The producers or exporters of the country (region) under investigation shall,
according to the requirement specified in the public notice of initiation, register with MOFTEC for
responding to the proceeding within 20 days from the date of initiation of the countervailing dutyinvestigation.
Article 7 .  For registration with MOFTEC to respond to the proceeding, the producers and
exporters shall submit the following information in the form of simplified Chinese text:
1. a clear expression of intent to register to respond to the proceeding;
2. the name, address, legal representative, and means of contact and name of the contact
person for the responding company;
3. the total quantity and value of the product concerned exported to the P.R.C. during
the investigation period.
The registration document for responding to the proceeding shall have the seal of the
responding company and/or the signature of its legal representative.
Where representation of the corresponding company is by a practising lawyer of the P.R.C.,
the registration document shall list the attorney’s name, means of contact, law firm and address,together with an original power of attorney.
.G/SCM/N/1/CHN/1/Suppl.1
Page 10
Article 8 .  The investigation questionnaire shall be issued to the responding companies within
ten working days after the deadline for registration.
Article 9.   If there are too many responding companies and MOFTEC decides to carry out the
countervailing duty investigation by using samples, the questionnaire may be issued only to the
responding companies selected as samples.
MOFTEC may properly extend the period for issuing the questionnaire if the investigation is
conducted by sampling.
CHAPTER 3 - REQUIREMENTS FOR QUESTIONNAIRE RESPONSES
Article 10 .  The responding company shall submit its questionnaire response as accurately
and completely as is possible within the specified time limits. The questionnaire response shallinclude all information required in the investigation questionnaire.
Article 11 .  The responding company may consult with the case-handlers listed in the
questionnaire, in writing, if there are any questions about how to reply to the questionnaire.
Article 12 .  Before answering the questions listed in the questionnaire, the responding
company shall in each case first describe the subject of the question and then answer the question
directly under the subject.
Article 13 .  The questionnaire shall be completed in simplified Chinese text and shall be
accompanied by relevant supporting documents acco rding to the requirements specified. If the
original supporting materials are in a language other than Chinese,  copies of both the original
supporting materials and a Chinese translation thereof shall be provided.
Article 14 .  The responding company shall indicate the source and origin of the supporting
materials used in the questionnaire response.  All documents relevant to the questionnaire, such as
sales documents, accounting records, financial reports and other documents shall not only be attachedto the questionnaire response of the company as required, but shall also be available for verification.
Article 15 .  The supporting materials for transactions required by the questionnaire shall be
presented chronologically; supporting materials for each transaction shall be presented according to
the transaction flow while a list of supporting materials for each transaction shall also be attached.
Article 16.  The responding company shall, according to the requirements of the
questionnaire, copy the questionnaire and transfer it to  its associated trading company or other related
companies to complete.  The associated trading co mpany or other related companies shall submit the
questionnaire separately according to the requirements of the questionnaire.
CHAPTER 4 - SUBMISSION OF THE QUESTIONNAIRE RESPONSE
Article 17 .  The questionnaire response shall be submitted to MOFTEC within 37 days from
the date on which the questionnaire was issued.G/SCM/N/1/CHN/1/Suppl.1
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Article 18 .  If there is justifiable reason showing that it is unable to complete the
questionnaire before the deadline, the responding company shall submit, seven days before the
deadline, to MOFTEC a written request for an extension of the time limit with respect to submission
of the questionnaire response, by presenting the grounds and reasons for extension.
MOFTEC shall reply in writing, no later than four  days before the deadline, to the request for
extension according to the particular situation of the responding company.
Normally an extension shall not exceed 14 days.
Article 19 .  Where the questionnaire response contains confidential information, the
responding company shall request confidential treatment of the information and give reasons for its
confidentiality.
A non-confidential summary shall be provided for information requiring confidential
treatment. A non-confidential summary shall provide adequate and meaningful information that may
permit other interested parties to have a reasonable understanding.  Where a non-confidentialsummary is impossible, it shall explain the reason thereof.
Article 20 .  MOFTEC shall examine the request for confidential treatment. If the reasons for
confidentiality are insufficient, or if a non-confidential summary does not satisfy the requirements of
paragraph 2 of Article 19, or if the reasons why a non-confidential summary is impossible are not
adequate, the responding company may be required to make amendments.
MOFTEC may disregard the materials if the responding company refuses to make
amendments or if the amended non-confidential summary does not satisfy requirements.
Article 21 .  The questionnaire response shall be prepared in two types. One shall be a
complete questionnaire response including confidential information; the other one is a responsecontaining public information only. The responding company shall clearly designate the confidential
version or public version on the cover page of each questionnaire response. In the public version of
the questionnaire response, confidential information shall be indicated by the use of brackets  “[  ]”,plus the corresponding serial number of the non-confidential summary.
Article 22 .  The responding company shall submit one original questionnaire response in
Chinese and four copies of the confidential version and the public version, respectively.
The whole questionnaire response must be properly bound into a book. The page number
must be printed on each page of the questionnaire response and on each of the attached supporting
materials. The questionnaire response shall contain a table of contents for the text of the response and
the attached supporting materials, and each annex shall be labelled with a serial number.
Article 23 .  The responding company shall submit a certificate signed by the legal
representative or its authorized person, according to the requirement of the questionnaire, stating thatthe information submitted by the responding company is accurate and complete.
MOFTEC shall not accept the questionnaire response if such certificate is not attached
thereto.G/SCM/N/1/CHN/1/Suppl.1
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Article 24.   The text of the written response and tables of data submitted to MOFTEC shall
be accompanied by a computer disk or CD in accordance with the requirements of the questionnaire,
or by other electronic medium acceptable to MOFTEC.
The content of electronic media shall be in the same form as the printed questionnaire
response, the calculation formula shall be kept in the tables if the data is calculated.
Article 25 .  The responding company is responsible for ensuring that all data submitted in an
electronic format is free of viruses.  Failure to undertake reasonable measures to avoid transmitting
viruses may be deemed to impede the investig ation.  In such a case, MOFTEC may make its
determination on the basis of facts available.
Article 26 .  In normal circumstances, failure to submit data in electronic format, particularly
failure to submit electronic media containing data of transactions and financial figures, shall be
considered non-cooperation by the responding company.
If the responding company is unable to submit data in electronic format, or is unable to
submit data in electronic format according to the requirements of the present Rules, or the responding
company would bear an improper extra burden if it is to submit electronic media according to the
requirements of the present Rules, the responding company shall submit a written request toMOFTEC within 15 days after the questionnaire is issued, explaining the reason why it is unable to
submit data in electronic format. MOFTEC shall reply in writing whether it agrees or does not agree
within 5 days after receiving the request.
Article 27 .  The questionnaire response of the responding company shall be submitted by
representation of a practising lawyer of the P.R.C., and the relevant matters shall be dealt with by theresponding company’s attorney. A valid power of attorney and a copy of the valid lawyer permit of
the attorney shall be attached to the questionnaire response. .
Article 28 .  The questionnaire response shall be sent to the address specified in the
questionnaire either by mail or by hand delivery before 17:00 on the specified deadline.
The delivery date shall be the date on which MOFTEC receives the questionnaire response.
CHAPTER 5 - SUPPLEMENTARY PROVISIONS
Article 29 .  In the course of the countervailing duty investigation, MOFTEC may issue
additional investigation questionnaires to the responding company requiring further information andmaterials.
The matters relevant to the additional questionnaire, such as issuance, reply and submission
shall be in conformity with these Rules.
Article 30 .  If the responding company does not submit the questionnaire response within the
specified time limit, or if it can not submit the questionnaire response as accurately and completely as
possible in accordance with the requirements of these Rules, or if it does not permit MOFTEC to
verify the documents submitted, or if it seriously impedes the investigation through other methods,G/SCM/N/1/CHN/1/Suppl.1
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MOFTEC may make its preliminary or final determination on the basis of the facts available and draw
adverse inferences with respect thereto.
Article 31.   MOFTEC may issue the questionnaire to the government of the exporting
countries (regions) or the countries (regions) of origin within thirty days after the public notice of
initiation of the investigation. These Rules shall apply to issuance, reply and submission of thequestionnaire.
Article 32.   MOFTEC shall have authority to interpret these Rules.
Article 33 .  These Rules will enter into force on 15 April 2002.G/SCM/N/1/CHN/1/Suppl.1
Page 14
PROVISIONAL RULES FOR ON-THE-SPOT VERIFICATION IN
COUNTERVAILING DUTY INVESTIGATIONS
Article 1.   With a view to regulating the procedure for on-the-spot verification in
countervailing duty investigations, these Rules are fo rmulated in accordance with provisions of “the
Countervailing Duty Regulation of the People’s Republic of China”.
Article 2.   The Ministry of Foreign Trade and Economic Co-operation (hereinafter referred to
as MOFTEC) appoints the Bureau of Fair Trade for Imports and Exports to be in charge of theimplementation of these Rules.
Article 3.   The on-the-spot verification provided for in these Rules refers to the procedure by
which MOFTEC dispatches its officials to the exporting country (region) concerned during the
investigation to verify truthfulness, accuracy and adequacy of the materials submitted by the exportersand producers and to collect further information and materials.
Article 4.   MOFTEC shall carry out the on-the-spot verification only for those exporters and
producers of the exporting country (region) concerned that co-operate fully in the investigation.
Article 5.   The main purpose of the on-the-spot verification is to verify the information and
materials submitted by the exporters and producers, including:
1. all information and materials submitted by the exporters and producers in the
questionnaire response;
2. information and materials contained in the additional questionnaire submitted by the
exporters and producers according to the requirements of MOFTEC;
3. information and materials submitted to MOFTEC by the exporters and producers on
their own initiative;
4. other information and materials that MOFTEC considers necessary to verify.
Article 6.   MOFTEC may decide whether to carry out an on-the-spot verification based upon
the merits of the particular circumstances in each case..
Article 7.   The on-the-spot verification will normally be carried out by MOFTEC after the
preliminary determination. However, the on-the-spot verification may alternatively be carried out
before the preliminary determination, based upon the merits of each case.
Article 8.   Having decided to carry out an on-the-spot verification, MOFTEC shall provide
advance notice to  the exporters and producers in question and the government of their country
(region).
Article 9.   MOFTEC shall obtain the express agreement of the exporters and producers in
question before the on-the-spot verification is conducted,.
Article 10.   Where on-the-spot verification is agreed to by the exporters and producers in
question, MOFTEC shall notify the government of the exporters’ and producers’ country (region) ofthe relevant information, such as the name, addre ss and agreed date for verification. MOFTEC shall
not carry out the on-the-spot verification if the go vernment of the exporters and producers’ country
(region) objects to it.
Article 11.   Prior to the on-the-spot verification, MOFTEC shall provide advance notification
of the detailed schedule to the exporters and producers in question.G/SCM/N/1/CHN/1/Suppl.1
Page 15
Article 12.   The verifying team shall be organized by MOFTEC.  Normally the verifying
team will be comprised of the government officials in charge of the countervailing duty investigation.
In exceptional circumstances, MO FTEC may invite non-governmental experts to take part in
the verification; however, in such cases, the exporters and producers and the government of their
country (region) shall be so informed in advance. Such non-governmental experts must abide by
confidentiality requirements.
Article 13.   The verifying team shall, prior to the on-the-spot verification, notify the exporters
and producers in question of the general nature of the information to be verified, and of any further
information that needs to be provided.
Prior to the verification, the verifying team may, where warranted, issue a detailed list of
issues for verification to the exporters and producers concerned.
Article 14.   The exporters and producers in question shall maintain and prepare all evidence
and materials that are to support information contained in the questionnaire response and additional
questionnaire responses and make the same available for verification.
If the original records of the above-mentioned evidence and materials exist in the form of
electronic data made with a computer software program, the exporters and producers underverification shall ensure that such computer soft ware program works normally and that the electronic
data can be copied and printed.
Article 15.   The exporters and producers under verification shall co-operate actively with the
verifying team during the on-the-spot verification. The staff in charge of preparation of thequestionnaire response and other staff in question shall be present and able to explain any questions
whenever they are raised by the verifying team.
Article 16.   The working language for verification is Chinese or any other languages to which
the verifying team agrees.
Article 17.   The verifying team may decide, accordin g to the level of complexity of the case,
whether to conduct a full verification or a verification by using samples.
Article 18.   The on-the-spot verification may be carried out within the scope of verification
notified in advance, which shall not prevent the verifying team from requiring on-the-spot requests for
the provision of further information and materials on the basis of the information and materialsavailable.
Article 19.   After completing the verification, MOFTEC shall disclose the results of the
verification to the exporters and producers subject to the verification within a reasonable period.
MOFTEC may disclose a summary of the verification upon the request from other interested partiesbut not the confidential information of the exporters and producers.
Article 20.   Having being verified, the information and materials provided in the
questionnaire response and in the additional questionnaire response, or information and materials
obtained further during the verification shall be th e basis for MOFTEC to determine the existence and
amount of a subsidy.G/SCM/N/1/CHN/1/Suppl.1
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Article 21.   MOFTEC may make its determination of subsidy and the amount of subsidy on
the basis of facts available and draw adverse inferences with respect thereto, if the following
circumstance exists:
1. the exporters or producers refuse the on-the-spot verification;
2. the government of the country (region) of the exporters and producers under
verification has objected to the on-the-spot verification;
3. the exporters or producers do not fully co-operate in accordance with the reasonable
requirements of the verifying team;
4. the verification cannot be completed as scheduled due to delay caused by the
exporters or producers in question;
5. serious problems are discovered during the verification with respect to the
truthfulness, accuracy and adequacy of the information and materials provided by the
exporters and producers in question;
6. there is clear existence of fraud or concealment perpetrated by the exporters and
producers in question;
7. other acts that impede the on-the-spot verification.
Article 22.   MOFTEC may, where necessary, conduct an on-the-spot verification of relevant
domestic importers of the product concerned. These Rules shall apply to such verification.
Article 23.   Upon request by exporters and producers concerned, and if the government of
their country (region) has no objection thereto to, MOFTEC may dispatch its staff to the exporting
country (region) to explain the countervailing duty investigation questionnaire.
Article 24.   MOFTEC shall have authority to interpret these Rules.
Article 25.   These Rules shall enter into force on 15 April 2002.G/SCM/N/1/CHN/1/Suppl.1
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PROVISIONAL RULES FOR THE CONDUCT OF PUBLIC HEARINGS
IN COUNTERVAILING DUTY INVESTIGATIONS
Article 1.  With a view to promoting the fair and equitable conduct of countervailing duty
investigations and protecting the legal rights and in terests of the interested parties as well as the
government of the interested country or region, these Rules are formulated in accordance withrelevant provisions of “the Countervailing Regulations of the People’s Republic of China”.
Article 2.  These Rules are applicable to public hearings held by the Ministry of Foreign
Trade and Economic Co-operation (hereinafter referred to as “MOFTEC”) to determine the existence
of a subsidy in a countervailing duty investigation.
Article 3.  MOFTEC hereby appoints the Bureau of Fair Trade for Imports and Exports to
implement these Rules for public hearings in countervailing duty investigations.
Article 4.  Any hearing for the determination of a subsidy shall be held publicly unless
permitted otherwise by the Bureau of Fair Trade for Imports and Exports in cases in which state
secrets, commercial secrets or personal privacy are concerned.
Article 5.  Subject to Article 4, the Bureau of Fair Trade for Imports and Exports shall hold a
public hearing upon application by an interested party or government of the interested country orregion.  The Bureau of Fair Trade for Imports and Exports may also decide to hold a public hearing
on its own initiative if warranted.
Article 6.  In cases in which the Bureau of Fair Trade for Imports and Exports determines to
hold a public hearing on its own initiative, it shall notify in advance all interested parties and the
government of the interested country or region, and apply the relevant provisions of these Rules.
Article 7 .  The “interested parties” to which these Rules refer include the applicant for the
countervailing investigation, known exporters, importers, and other interested organizations orindividuals.  The “government of the interested country or region” refers to the government of the
exporting country or region and/or to the government of country or region of origin.
Article 8 .  Any interested party, or government of the interested country or region, that
requests a public hearing shall submit to the Bureau of Fair Trade for Imports and Exports a written
application for a public hearing.
The application for a public hearing sh all include the following information:
(1) the name, address and any other relevant information of the applicant;
(2) the purpose for which the hearing is requested;
(3) the reasons for which the hearing is requested.
Article 9 .  Within 15 days after the receipt of an application for hearing submitted by an
interested party or the government of the interested country or region, the Bureau of Fair Trade for
Imports and Exports shall determine whether to hold a public hearing and, if so, shall notify the
interested parties including the applicant and the government of the interested country or region.G/SCM/N/1/CHN/1/Suppl.1
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Article 10.  The notice of decision to hold a public hearing issued by the Bureau of Fair Trade
for Imports and Exports shall include the following information:
(1) whether the Bureau of Fair Trade for Imports and Exports has determined to hold a
public hearing;
(2) the reasons for holding a public hearing;(3) the time for registration for appearance at the hearing, the site of the hearing, the
person to preside at the hearing, and any other relevant requirements needed to be
known by the interested parties before the hearing;
(4) any other information relevant to the public hearing.
Article 11 .  After receiving the notice of decision to hold a public hearing, each interested
party and/or the government(s) of the interested country or region shall register to appear at the public
hearing with the Bureau of Fair Trade for Imports and Exports in accordance with the instructions in
the notice, submit a summary of the presentation that the party or government will make at thehearing, and provide any other relevant evidence specified in the notice.
Article 12 .  The Bureau of Fair Trade for Imports and Exports shall determine the time and
location of the public hearing and establish a hearing agenda, within 20 days of the final date ofregistration for the public hearing as specified in the notice of decision to hold a public hearing.  The
Bureau of Fair Trade for Imports and Exports shall also notify the registered interested parties and
government(s) of the interested country or region within 20 days of the final date for registration for
the public hearing as specified in the notice of decision to hold a public hearing.
Article 13.  The person presiding at the public hearing shall exercise the following functions
and powers during the hearing:
(1) to ascertain the identity of hearing participants;
(2) to maintain order at the hearing;
(3) to question the interested parties and the government(s) of the interested countries or
regions;
(4) to determine questions of evidence, includ ing whether to permit the interested parties
and government(s) of the interested countries or regions to present additional
evidence;
(5) to make any decisions regarding the suspension or termination of the hearing;
(6) to determine any other matters necessary at the hearing.
Article 14.   Any interested party or government of an interested country or region may be
represented by its legal representative(s) or leading official at the public hearing.
Article 15.   The interested parties and/or the government of the interested countries or regions
appearing at the public hearing shall assume the following obligations in the hearing:
(1) to appear at the designated time and place to attend the hearing;
(2) to abide by the rules of the hearing and to follow instructions of the official presiding
at the hearing;
(3) to respond accurately and completely to the questions presented by the official
presiding at the hearing.G/SCM/N/1/CHN/1/Suppl.1
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Article 16 .  The public hearing shall be conducted in accordance with the following
procedures:
(1) the official presiding at the hearing shall announce the commencement of the hearing,
and present the rules of the hearing;
(2) the official presiding at the hearing shall confirm the identity of the hearing
participants;
(3) the interested parties and/or the governments of the interested countries or regions
shall make their presentations;
(4) the official presiding at the hearing shall examine the interested parties and/or
governments of the interested countries or regions;
(5) the interested parties and/or the governments of the interested countries or regions
shall make their final presentations;
(6) the official presiding over the hearing shall announce the closure of the hearing.
Article 17.   The purpose of the public hearing shall be to permit the investigating authorities
to collect further information and to permit the interested parties and/or the governments of the
interested countries or regions to present their views and to submit evidence.  Debate betweeninterested parties and governments is not permitted at the public hearing.
Article 18.  Each public hearing shall be recorded in writing that shall be signed by, or
affixed with the official seal of, the official presiding over the hearing, the person recording the
hearing, and the interested parties and/or the governments of the interested countries or regions
appearing at the hearing.  In any case in which an interested party and/or the government of aninterested country or region refuses to sign the record of the proceeding, or affix its seal to the record
of the proceeding, the person presiding at the hearin g shall record the refusa l in the record of the
hearing.
Article 19.  A public hearing may be postponed or cancelled by the decision of Bureau of
Fair Trade for Imports and Exports under any of the following circumstances:
(1) if, by reason of force majeure, the applicant for the hearing has submitted a written
request for cancellation or postponement the hearing.
(2) if the countervailing investigation is terminated;
(3) for any other reason necessitating the cancellation or postponement of the hearing.
Article 20.  After the grounds for postponing a public hearing cease to exist, the Bureau of
Fair Trade for Imports and Exports shall immediately resume the public hearing and notify the
registered interested parties and/or the governments of the interested countries or regions.
Article 21.  The form of notification required by these Rules is public notice by MOFTEC.
Nonetheless, under special circumstances, the Bu reau of Fair Trade for Imports and Exports may
adopt other forms of public notification.
Article 22.  The official language used in the hearing shall be Chinese.G/SCM/N/1/CHN/1/Suppl.1
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Article 23.  MOFTEC has the sole responsibility for,  and authority to, interpret these Rules.
Article 24.   These Rules shall enter into force on 13 March 2002.
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