RESTRICTED
WORLD TRADE G/ADP/AHG/W/35
17March 1998
ORGANIZATION(98-1050)
Original: English Committee onAnti-Dumping Practices
AdHocGroup onImplementation
TOPIC 1*-ARTICLE 6.5"TREATMENT OFCONFIDENTIAL INFORMATION"
TOPIC 2*-PERIOD OFDATA COLLECTION
TOPIC 3*-ARTICLE 6.10"SAMPLING METHOD"
TOPIC 4*-ARTICLE 5.6"SPECIAL CIRCUMSTANCES"
TOPIC 5*-ARTICLE 5.5"NOTIFICATION TOTHE EXPORTING MEMBER"
TOPIC 6*-ARTICLE 6.2"HEARINGS"
TOPIC 7*-ARTICLE 6.9"DISCLOSURE OFESSENTIAL FACTS"
TOPIC 10*-ARTICLE 9"DUTY ASSESSMENTS"
Paper byTurkey
Thefollowing communication, dated 11March 1998, hasbeenreceived fromthePermanent
Mission ofTurkey.
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Theviews oftheTurkish delegation onthetopics stated inthedocument WTO/AIR/750 are
asfollows:
Topic 1-Treatment ofConfidential Information
Asalready stated inourprevious paper (G/ADP/AHG/W/14),
"theinformation on
- costofproduction,
- market share,
- evidence relating tonormal value andexport prices,
- capacity,
- investment
istreated asconfidential."
Inaddition totheabove, thefollowing typeofinformation isconsidered asconfidential byits
nature:
*Seedocument G/ADP/W/401 fordescriptions ofthenumbered topics.G/ADP/AHG/W/35
Page2
- product specification,
- technological process,
- customer names,
- price ofindividual sales,
- salescost,
- profit levels,
- other similar information deemed tobebusiness secrets.
Turkey does nothave asystem ofdisclosing confidential information inanti-dumping
investigations.
Topic 2-Period ofData Collection
Period ofdatacollection forinvestigation istheperiod during which export prices should be
compared withnormal values forthepurpose ofdetermining themargin ofdumping. Thisperiod
isnotprescribed intheAnti-Dumping Agreement (A-D Agreement).
Ontheother hand, period ofdatacollection forprofitability analysis canbeunderstood asthe
"extended period oftime" referred toinArticle 2.2.1 oftheA-DAgreement. Article 2.2.1 and
footnote 4oftheA-DAgreement provide that,forthepurposes ofdetermining whether salesbelow
costmaybetreated asnotbeing intheordinary course oftrade, theextended period oftimewithin
which suchsalesaremade should normally beoneyearbutshallinnocasebelessthansixmonths.
Above explanation reveals that:
- theperiod ofinvestigation always covers theperiod ofprofitability analysis,
- theperiod ofinvestigation should beatleastsixmonths andnormally should beone
year,
- forexample, while theperiod ofinvestigation isoneyeartheperiod ofprofitability
analysis canbesixmonths.
Astheperiod ofinvestigation, Turkey normally chooses theperiod of12months prior tothe
firstdayofthemonth inwhich thepublic notice (intheform ofcommunique) oftheinvestigation
isenacted intheOfficial Gazette.
Theprocedure isthesame inreview investigations.
Ontheother hand, asforinjury determinations theperiod ofdatacollection isfourcalendar
years plustheyearinvestigation isinitiated.
Topic 3-Sampling Method
Inresponse toCanada 'squestion whether Members which haveusedsampling haveuseddata
from cooperative exporters whowere notformally included inthesample todetermine themargin
ofdumping forthesample, Turkey hasnotusedsampling ofdatafrom cooperative exporters sofar.
Topic 4-Special Circumstances
Turkey believes thatArticles 5.4and5.6oftheA-DAgreement arerelated. Thus, when
Article 5.6which says"...inspecial circumstances, theauthorities concerned decide toinitiate anG/ADP/AHG/W/35
Page3
investigation without having received awritten application byoronbehalf ofadomestic industry for
theinitiationofsuchinvestigation..."isinvoked.Turkishauthoritiesdeterminestandingofthedomestic
industry asstated inArticle 5.4andproceed onlyifatlest25percentruleisverified.
Turkey,currently,doesnothavean"assisting"procedureforindustriesinpreparingapplications.
However,iftheTurkishauthoritiesreceivearequestinthisrespect,naturallytheauthoritiesmayprovide
assistance tothem.
Topic 5-Notification totheExporting Member
Within thecontext ofArticle 5.5oftheA-DAgreement, Turkey notifies thegovernment of
theexportingMemberonlyonceafterreceiptofaproperlydocumentedapplicationandbeforeproceeding
toinitiate aninvestigation.
Topic 6-Hearings
Asalready stated inourprevious paper (G/ADP/AHG/W/14),
"Hearing(s) canbeheldatanytimeduring thecourse ofinvestigation. Itis
regarded beneficial thatifalltheinterested parties havebasic information andfacts
about theinvestigation andtheinvestigating authority hasidentified some issues but
hasnotmade apreliminary determination yet. After preliminary determination,
hearing(s) maybeheldfortheinterested parties whowanttosubmit theirviews again."
Topic 7-Disclosure ofEssential Facts
Asalready stated inourprevious paper (G/ADP/AHG/W/14),
"InArticle 6.9oftheA-DAgreement, itisstated thatdisclosure "...should
takeplace insufficient timefortheparties todefend theirinterests". Taking this
provision intoconsideration, interested parties whohavecooperated should beinformed
oftheessential factsduring theinvestigation. Thisshould takeplace early enough
toallow interested parties tomake theirviews known andlettheinvestigating authority
evaluate those views.
Disclosure should bemade inwriting andtakeplace after preliminary
determination butnottooearlybefore finaldetermination. Itshould benoted thatnew
andimportant factsmight beobtained during thefinalpartoftheinvestigation. These
factsshould alsobedisclosed."
InTurkish practice, twodifferent finaldisclosure filesareprepared:
(1) Forexporters: thedisclosure filecontains aconfidential version ofdumping margin
calculation (with dataset)andanon-confidential version ofinjury determination (no
datasetonlyindexes) plusgeneral information tobereleased inpublic notice.
(2) Fordomesticindustry:thedisclosurefilecontainsanon-confidentialversionofdumping
margin calculation (nodataset)andaconfidential version ofinjury determination (with
dataset)plusgeneral information tobereleased inpublic notice.G/ADP/AHG/W/35
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Topic 10-Duty Assessments
Asalready stated inourprevious paper (G/ADP/AHG/W/14),
"Inaddition tothis,inArticle 9oftheAnti-Dumping Agreement thedecision
whether ornottoimpose ananti-dumping dutyincases where allrequirements for
theimposition havebeenfulfilled, islefttotheinvestigating authorities. Besides, the
amount oftheanti-dumping dutytobeimposed, provided thatitisnothigher than
themargin ofdumping, isatthediscretion oftheinvestigating authorities.
InArticle 9.1oftheA-DAgreement itisstated thattheanti-dumping dutyisdesirable tobe
lessthanthemargin ofdumping ifsuchlesser dutywould beadequate toremove theinjury.
Application oflesser dutyshould betherulebecause:
- thespirit oftheA-DAgreement requires this.Theaimofimposing anti-dumping duty
istoremove theinjury, notthedumping since, incaseswhere goods aresoldatdumped
prices buthavenotcaused injury thennomeasures canbeimposed.
- ahigher dutythantheamount necessary toremove theinjury mayleadtoinefficiencies
intheallocation ofresources.
Turkey'scurrentlegislationgoverningproceduresforanti-dumpinginvestigationshasprovisions
concerning thissubject. InArticle 7oftheLawonthePrevention ofUnfair Competition inImportation
itisstated that'...incaseitisdetermined thattheinjury occurring onaccount ofdumped and/or
subsidized importation maybecompensated bytheimposition ofadutyatalesser quantity orrate
thantheestablished dumping margin orsubsidy amount, adutyonsuchrateorquantity shall be
applied '."
(i) Turkey applies thelesser dutyrule. After adumping margin iscalculated, anon-
injurious price, atwhich perfect competition canbemetinthemarket oftherelevant
product, isestablished. Then, thedifference between non-injurious price andcostof
importation isusedasduty.
(ii) Turkey assesses theamount ofanti-dumping dutyonaprospective basis. Definitive
anti-dumping dutyiscollected atthetimeofimportation.
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