. /.WORLD TRADE
ORGANIZATIONG/ADP/Q1/CHN/5
G/SCM/Q1/CHN/5
7 October 2002
(02-5371)
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
Questions Posed by the SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU,
KINMEN AND MATSU Regarding the Notification of
THE PEOPLE'S REPUBLIC OF CHINA1
The following communication, dated 3 October 2002, has been received from the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
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Questions with regard to China's Transition al Review Mechanism (TRM) on Anti-Dumping
Practices
Referring to the regular meeting of the Committee on Anti-Dumping Practices to be held on
24-25 October 2002, I have the honour to enclose herewith questions of my Mission concerning
China's national legislation.
1. Period of provisional measures
Article 30 of the Anti-Dumping Regulation provides that the period for applying provisional
anti-dumping measures, "in special circumstances, may be extended to 9 months".  Please explain
how that provision complies with Article 7.4 of the WTO Anti-Dumping Agreement which limits theapplication "to a period not exceeding six months".
2. Unilateral corresponding measures
Article 56 of the Anti-Dumping Regulations indicates possible corresponding measures
against a country (region) which discriminatorily imposes anti-dumping measures on the exports from
China.  Please confirm that the application of said Article will be in full conformity with the relevant
provisions of the Anti-Dumping Agreement and the WTO dispute settlement mechanism, and will not
be invoked when China unilaterally considers those measures discriminatory.
3. On-the-spot Verification
(1) Pursuant to Item (5), Article 39 of the Provisional Rules on Initiation of Anti-Dumping
Investigation, the intention to carry out on-the-spot investigation should be indicated in the Public
Notice of the initiation of an investigation.  Please indicate whether or not on-the-spot verification
                                                     
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G/SCM/Q1/CHN/5
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will only be carried out when indicated in the Public Notice.  Please also explain its conformity with
the requirement stipulated in Article 6.7 of the Anti-Dumping Agreement including "to obtain the
agreement of the firms concerned" and "to notify the representative of the government of the Member
in question".
(2) Pursuant to Item (2), Article 21 of the Provisional Rules on On-the-spot Verification of Anti-
Dumping Investigation, the investigating authority may use "best information available" should the
request for on-the-spot verification is objected by the government of the Member in question.  This
legislation seems to be inconsistent with the ruling made in the Report of the Panel in the  Guatemala
– Definitive Anti-Dumping Measures on Grey Portland Cement from Mexico  case, which clearly
stated that even on-the-spot verification is objected, "'best information available' should not be usedwhen information is 'verifiable', and when 'it can be used in the investigation without undue
difficulties.'"  (See paragraph 8.252, WT/DS156/R.)  Please confirm that when on-the-spot
verification is objected, the investigating authorit y will nevertheless try to verify all information
submitted, and 'best information available' practice wi ll be employed only after demonstrating that the
information could not be used 'without undue difficulties'.
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