RESTRICTED
WORLD TRADE G/ADP/W/172
G/SCM/W/179
ORGANIZATION 24November 1995
(95-3721)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYROMANIA1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 14November 1995, hasbeenreceived fromthePermanent
Mission ofKorea.
_______________
1. General Questions
(a) Incases where there arenorelevant provisions inthedomestic legislation, doestheWTO
Agreement apply?
(b) Iftheprovisions oftheexisting domestic legislation donotconform totheWTO Agreement,
dotheprovisions oftheWTO Agreement apply?
2. How wastheAnti-Dumping Agreement transposed intonational lawinRomania?
Anylaworother legislation bywhich thiswasdoneshould bemade available. Ifsuchisnot
yetavailable, when willRomania comply withitsinternational obligation tobring itslegislation into
conformity withthisAgreement?
IftheprovisionsoftheexistingActdonotconformwiththerelevantprovisonsoftheAgreement,
dotheprovisions oftheAgreement apply?
3. Normal Value
When therearenosalesofthelikeproduct intheordinary course oftradeandsothedumping
margin isdetermined bycomparison withaprice ofthelikeproducts exported toathirdcountry, the
Agreement requires theuseofacomparable price, whereas therelevant article oftheDecree No.228
states thatthecommission mayusethehighest price.
Using thehighest price indetermining dumping margin doesnotconform totheAgreement.
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4. TheGenerally Accepted Accounting Principles
Article 2oftheJointOrder No.128stipulates, "Allcostscalculations shallbebased onavailable
accounting data..."
Doesthishavesamemeaningasgenerallyacceptedaccountingprinciplesoftheexportingcountry
oftheAgreement Article 2.2.1.1?
5. Adjustment
Article 2ofJoint Order No.128stipulates, "Aclaim foradjustment which isinsignificant
inrelation totheprice ...oftheaffected transaction shall bedisregarded. Ordinally, individual
adjustments ...having aneffect oflessthan0.5percentofthepriceofaproduct shallbeconsidered
insignificant.
Which article oftheAgreement authorizes this?
6. Determination ofInjury
Article 3.7oftheAgreement stipulates, "Inmaking adetermination regarding theexistence
ofathreat ofmaterial injury, theauthorities should consider ...(i)asignificant rateofincrease of
dumped imports ...(ii)...capacity oftheexporter ...(iii)whether imports areentering atprices that
...would likely increase demand forfurther imports, and(iv)inventories."
TheAgreementstipulatesfourconditionsshouldbeconsidered,whereastheRomanianRegulation
specifies therateofincrease andexport capacity intheexporting country. TheRegulation doesnot
require thatthetwoother conditions provided bytheAgreement beconsidered:
a) whether imports areentering atprices that...would likely increase demand forfurther imports,
and
(b) inventories
TheRegulation needtoaccept therelevant provisions oftheAgreement.
7. Investigation Period
There isnoprovision stating thataninvestigation maynotbeapplied forlonger than18
months.
TheRegulation needtoaccept therelevant provisions oftheAgreement.
8. Understanding
Article 8.2oftheAgreement requires theinvestigating authority tomake anaffirmative
preliminary determination before entering intoanundertaking. HowdoesRomania ensure conformity
ofitspractice withtheAgreement?G/ADP/W/172
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9. Provisional Measures
HowdoesRomania ensure conformity ofitspractice withArticle 7.3oftheAgreement, which
requires thatprovisional measures shallnotapplied earlier than60daysfrom theinitiation ofthe
investigation?