RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/KGZ/4
G/SCM/Q1/KGZ/4
15 June 2000
(00-2382)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Replies to Questions Posed by the UNITED STATES1
Regarding the Notification of the KYRGYZ REPUBLIC2
The following communication, dated 13 June 2000, has been received from the Permanent
Mission of the Kyrgyz Republic.
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Q1. Article 4 of the Anti-Dumping Law of the Kyrgyz Republic (the “Law”) indicates that in
addition to the Law, anti-dumping legislation w ill include other legislative and normative legal
acts of the President and Government of Kyrgyz Republic.  What specific laws and regulations
are contemplated by this Article and when are th ey expected to be adopted and notified to the
WTO?
Answer:
Article 4 of the Anti-Dumping Law of the Kyrgyz Republic refers not to specific laws and
regulations but generally to the all legislation relevant to a specific case.  Basically, the legislation
referred may include the Civil and Customs Codes.  In addition, the regulation implementing the Law
is currently being drafted and expected to be adopted in October 2000.  The regulation will be notified
to the WTO as soon as enacted.
Q2. The Law’s definition of the term injury  refers to “material losses” of the domestic
industry. Does the term “material losses” have a different meaning than the term “material
injury” used in Article VI:I of GATT 1947?  If s o, please explain what this meaning is and how
it is consistent with Article VI:I.
Answer:
The term “losses” used in the Law is defined in Article 14 of the Civil Code as: (i) costs
expended or to be expended by the person, whose right has been violated, for restoration of the
violated right, or for loss or damage of his property (real injury), and (ii)  unreceived income, whichthis person would have received under normal conditions of  civil turnover, if his right had not been
violated (lost profits).  If the term “injury” was used in the Law it would mean that the unreceived
income would be excluded from the definition of injury.  Article VI:1 of GATT 1947 does not give
precise definitions or set of rules in respect of th e injury concept.  Nevertheless, the Kyrgyz Republic
                                                     
1 G/ADP/Q1/KGZ/1-G/SCM/Q1/KGZ/1
2 G/ADP/N/1KGZ/1 and G/SCM/N/1/KGZ/1G/ADP/Q1/KGZ/4
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believes, that there is no difference in the meaning of the terms “material losses” and “material
injury”, and supports the view that the determination of the material injury is a matter specifically and
expressly reserved, under the terms of Article VI:6(a), for the decision of the contracting party levying
the anti-dumping duty.
Q3. The Law’s definition of the term “like go ods” as “goods which are identical or similar”
does not clearly explain the difference in sour ces of origin between the imported “goods” and
domestic “like goods”.  What goods are the “like goo ds” supposed to be similar to, or identical
with according to this definition?  Is there an y difference between the terms “like goods” and
“like products” used in the Law and the term “like product” used in Article 2.6 of the A-D
Agreement?
Answer:
Although the definition of the term “like goods” in Article 1 of the Law does not clearly
explain the difference in sources of origin between the imported “goods” and domestic “like goods”,however, a clear distinction between the imported “goods” and domestic “like goods” is given under
the provisions of Article 7.
There is no difference between the terms “like goods” and “like products” used in the Law
and the term “like product” used in Article 2.6 of the A-D Agreement.  In the Russian text of the Lawa single term is used for both “like goods” and “like products”.  Therefore, throughout the Law the
term “like goods” shall be changed to “like products”.
Q4. The first paragraph of Article 8.2 requires an applicant to submit information “of the
production of a good  by an applicant” and “about the production of the like  product  by domestic
producers known to the applicant” (emphases added).  What is the reason for the use of two
different terms to describe the domestically produced items?
Answer:
The term “a good” shall be changed to “a product”.  The Kyrgyz Republic believes that in this
particular Article the use of two different terms will have no practical effect with respect tocompliance of the Law with the A-D Agreement.
Q5. How will the definition of the term “related  parties” be used by the Authorized Body in
the evaluation of injury to domestic producer s?  Will prices and other data concerning “the
related parties” be excluded from the eviden ce of injury caused to domestic producers?
Answer:
According to the principle of analogy of law under Article 5.1 of the Civil Code Authorized
Body excludes prices and other data concerning “the related parties” from the evidence of injurycaused to domestic producers unless proofs have been presented confirming that the fact of
relationship has not affected the data.
Q6. In addition to introducing the injury evalua tion criteria established in Article 3.1 of the
A-D Agreement, Article 25 of the Law requires evaluation of evidence with regard to the qualityof dumped imports.  What kind of evidence with regard to quality will be examined and what
impact will such evidence h ave on findings of injury?G/ADP/Q1/KGZ/4
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Answer:
Quality will be examined when the effect of the dumped imports on the prices is considered.
Due account shall be given by the Authorized Body to differences in prices of the domestic likeproduct and the dumped import product caused by difference in quality.  Even dumped, the price of a
higher quality imported product may be higher or the same as the price of a lower quality domestic
like product and still may cause injury to domestic producers.
Q7. When the relevant data for the group of like products is not available. Article 28.3 of the
Law requires the examination of data for “a more narrow group of products included into the
group of like products”.  This language appears to be in conflict with Article 3.6 of the A-DAgreement, which provides for the use of data for a broader category of products, which
includes the like product.  It states specifically that “the production data of the narrowest group
or range of products, which includes the like product” can be used.  What is the reason for this
discrepancy?  Is this the intended meaning of the Law or possibly a translation error?
Answer:
Article 4.2 of the Law states that in case of a conflict between the provisions of the Law and
the provisions of the international agreement ratified by the Kyrgyz Republic, the latter’s provisions
will apply.  Provisions of Article 28.3 appears to create a case when Article 4.2 of the Law will beapplied in order to ensure the compliance of the Law with the provisions of the A-D Agreement.
Q8. Article 3.2 of the A-D Agreement states th at investigating authorities should examine
whether there is “significant price undercutting” by the dumped imports or whether their effect
is to depress prices or prevent price increases “to a significant degree”.  Article 27(2) does notstate that underpricing, or price depression or suppression must be “significant”.  How is this
consistent with Article 3.2 of the A-D Agreement?
Answer:
Article 27.2 of the Law states that the Authorized Body determines the degree of
underpricing, or price depression or suppression.  The Law leaves for the implementing regulationcurrently being drafted, to clarify and ensure consistency with the provisions of Article 3.2 of A-D
Agreement.
Q9. Article 4.2(ii) of the A-D Agreement allows investigations and findings of injury caused
to producers of a regional market only if “there is a concentration of dumped imports into suchan isolated market and provided further that  the dumped imports are causing injury to the
producers of all or almost all of the production within such mark et”.  How does Article 30 of the
Law meet these requirements?
Answer:
We understand that reference is made to Article 4.1(ii) of the A-D Agreement.  The
consistency with its provisions will be clarified in the implementing regulation currently being
drafted.
Q10. What kind of protection of confidential information is available under existing Kyrgyz
legislation as referenced by Article 34.4 of the Law?  What kind of civil, criminal, or
disciplinary penalties are imposed by such legislation for unwarranted disclosure of confidentialG/ADP/Q1/KGZ/4
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information?  What kind of procedural conditions will be imposed under the Law to allow
access of interested parties to confidential information?
Answer:
The existing Kyrgyz legislation provides for the imposition of civil, criminal and disciplinary
penalties for unwarranted disclosure of confidential  information.  Article 34 of the Civil Code requires
that an injury caused by disclosure of an official or commercial secret must be indemnified.
Article 194 of the Criminal Code provides for a fine in the amount of 100 to 200 minimum monthly
salaries or public works for the period of up to 120 hours for illegal disclosure or use of a commercial
or bank secret, without its owner’s agreement, by a person who is aware of this secret in connection
with the professional or official activity and which caused a significant damage to a commercial
organization or individual entrepreneur.  Article 314 of the Code of Administrative Liability provides
for an administrative penalty within the range of twen ty to thirty minimal salaries for disclosure of a
confidential information.
Under the Law the Authorized Body may allow access of interested parties to confidential
information only under a written permission from a person who provided confidential information.
Q11. Does Article 38.2 contemplate more than on e hearing in an investigation by stating that
“each party shall be entitled for one hearing to be held”?  What kind of justification is requiredby Article 38.4 to request an “additional hearing”?  What other procedural requirements will
apply to ensure fairness and transparency of hearings, such as public notifications, witness
testimonies, availability of transcripts, oppo rtunity to provide written submissions by the
parties, etc.?  Will the joint hearing be held wi th more than one party to allow for exchange of
views, arguments and rebuttals by the interested parties?
Answer:
Justifications to request an additional hearing and other procedural requirements will be
established in the implementing regulations currently being drafted.  The Law does not prohibit the
Authorized Body from holding joint hearing with more than one party to allow for exchange of views,
arguments and rebuttals by the interested parties.
Q12. Article 42 of the Law allows for imposition of provisional measures for a period of six
months with the right to extend the period to nine months “in case where provisional anti-
dumping measures are not sufficient to eliminate injury within six months”.  Can the Kyrgyz
Republic explain the discrepancy between this provision and Article 7.4 of the A-D Agreementwhich limits the imposition of provisional measures to a term of six months when the lesser-duty
rule is applied, unless “exporters representing  a significant percentage of the trade involved”
request an extension so that provisional measures can be imposed for up to nine months?
Answer:
Article 42 of the Law establishes the maximum time limits for the imposition of provisional
measures.  The regulation being drafted to implement the Law will contain the provisions describing
in detail how Article 42 shall be implemented and will ensure the adherence to the provisions of
Article 7.4 of the A-D Agreement.
Q13. Article 48.5 of the Law provides that the administering authority shall terminate the
anti-dumping investigation and issue a final determination to impose anti-dumping duties if
there is evidence of (a) a history of injuriou s dumping and (b) the injury cause by massiveG/ADP/Q1/KGZ/4
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dumping imports of the subject product in short time is likely to seriously undermine the
remedial effect of the anti-dumping duty being in troduced. Please give examples of the type of
evidence that would be sufficient to demonstrate a history of dumping.  Why would a history of
dumping and injury be sufficient to terminate  an ongoing anti-dumping investigation and
impose duties?
Answer:
The Authorized Body will evaluate the sufficiency of evidence, however there are no
practices of implementing the Law which could show examples of the type of evidence that would be
accepted by the Body as sufficient to demonstrate a history of dumping.
A history of dumping and injury will not be sufficient to terminate an ongoing anti-dumping
investigation and impose duties.  There must be also evidence of the injury caused by massive
dumping imports of the subject product in a short time which is likely to seriously undermine the
remedial effect of the anti-dumping duty being introduced.
Q14. What kind of ”order stipulated by legislation of the Kyrgyz Republic” is required in
Article 58 to obtain access to judicial review of the decisions made by Authorized Body?
Answer:
Article 58 refers to the judicial procedures generally applicable.  There are no special
procedures to obtain access to judicial review of the decisions made by the Authorized Body, other
than required in all other cases when the decision of any governmental body is being appealed.
According to Article 19 of the Code of Commercial Court Procedures, access to judicial review isopen to Kyrgyz and foreign entities and international organizations.
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