RESTRICTED
WORLD TRADE G/ADP/W/93/Suppl.1
G/SCM/W/102/Suppl.1
ORGANIZATION 18October 1995
(95-3140)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFNEW ZEALAND1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Supplement
Thefollowing communication, dated 9October 1995, hasbeenreceived from theEuropean
Communities.
_______________
Anti-Dumping Legislation ofNewZealand
1. Bestinformation available
NowheredoestheNewZealandActmentiontheuseof"bestinformationavailable"asenvisaged
intheGATT Agreement (Article 6.8andAnnex II).
Question
WillNewZealand clarify itslegislative position ontheuseof"best information available"
initsA-DandCVD investigations?
2. Anti-dumping margins: Article 14oftheNewZealand Act
Nothingissaidhereaboutindividually-assesseddumpingmarginsasprovidedforinArticle6.10
oftheAgreement.
Question
Could NewZealand show thatitwillprovide forindividually-assessed dumping margins?
3. Form ofnotification: Articles 9(a),11(1)(g), 13(2) and16(1) etc.oftheNewZealand Act
TheNewZealand Actmerely states thatapublic notice istogive"abriefsummary ofthe
reasons forthegiving ofthenotice ..."(Article 9(a)New Zealand Act). Thisbasic definition is
insufficient when compared withtherequirements ofArticle 12oftheAgreement. Forexample,
Article 12.1.1 oftheAgreement requires more information tobepublished inthepublic notices of
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initiation,suchasthebasisofthedumpingallegation,summaryofinjuryfactors,time-limitnotifications,
etc.However, when Article 10(4) oftheNewZealand Actmakes reference totheword "notice" for
itspublic notice ofinitiation, itisactually referring totheabove insufficient definition inArticle 9
which onlyrequires anunspecified "basic summary".
Similar references totheinadequate Article 9definition aremade inArticle 13(2) forthe
publication ofthenotice offinaldetermination, andinArticle 16(1) forthepublication ofthenotice
ofprovisional measures, aswellaselsewhere.
Question
Does NewZealand intend toimplement Article 12oftheGATT Agreement?
4. Written evidence: Article 10(1) oftheNewZealand Act
InArticle 10(1) oftheNewZealand Act,initiation canoccur "...onbeing satisfied thatsufficient
evidence hasbeenprovided ...". Article 5.1oftheGATT Agreement, however, specifies thatthe
evidence shallbeinwritten form. TheNewZealand wording isimprecise inthisregard.
Question
WillNewZealand clarify thewording usedhere?
5. Presentation oforalevidence: Article 10.6(a) NewZealand Act
Article6.1oftheGATTAgreementmerelyrequiresthatopportunitybegivenforthepresentation
ofwritten evidence. Article 10.6(a) oftheNewZealand Actaddsthatsuchevidence maybepresented
orally, too,"upon justification being shown". Thesubtle details relating tothe"availability toother
parties" inwritten form ofinformation given orally (Article 6.3GATT Agreement) areabsent from
theNewZealand Act.
Question
Whyisthisso?
6. Confrontation meetings: Article 10.6(c) NewZealand Act
Article 10.6(c) oftheNewZealand Actdoesnotexplicitly statethatfailure toparticipate in
aconfrontation meeting willnotprejudice thecaseoftheparty orparties notwishing toparticipate.
Article 6.2oftheGATT Agreement isabsent intheNewZealand Act.
Question
Whyisthisso?
7. Non-confidential information: Article 10(8) NewZealand Act
WhereastheNewZealandActstatesherethat"theSecretarymayrequest"partieswhosubmitted
confidential information toprovide anon-confidential summary, theGATT Agreement actually more
specifically usesthewords "...shall require ...": non-confidential summaries arenotoptional
(Article 6.5.1 GATT Agreement).G/ADP/W/93/Suppl.1
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Question
WhydoestheNewZealand Actdiffer?
8. Non-confidential information: Article 10(8)(a) and(b)NewZealand Act
TheNewZealand Actfailstodefine whatwould constitute a"satisfactory" non-confidential
summary: the"sufficient detail" condition ofArticle 6.5.1 (second sentence) oftheGATT Agreement
isabsent.
Question
Whyisthisso?
9. Failure tooffer anundertaking: Article 15NewZealand Act
TheNewZealand Actcontains noprovision which reflects Article 8.5oftheGATT Agreement.
ThisArticle states thatfailure tooffer anundertaking should notprejudice thecase.
Question
Whyisthisso?
10. Undertakings: Article 15NewZealand Act
The New Zealand Actalso contains noprovision which reflects theprovision of
Article 8.5(GATT Agreement) wherein itisstated thatnoexporter shallbeforced toenter intoan
undertaking.
Question
Whyisthisso?
11. Arm'slength transactions: Article 3(2)and4(1)(c) NewZealand Act
TheNewZealand Actstates thatsalesoftheproduct "...shallnotbetreated asanarm'slength
transaction ..."ifthere issome compensatory arrangement forthebuyer ofthegoods. Later, in
Article 4(1)oftheNewZealand Actitisstated theexport price shallbeasfollows forcases where
thetransaction wasnotatarm'slength:
- a"reasonable price" determined bytheSecretary (paragraph (c))where thecondition ofthe
goods waschanged upon resale bytheimporter; or
- anadjusted price (paragraph (b))where thecondition ofthegoods wasnotchanged.
However, Article 2.3oftheGATT Agreement merely saysthatfortransactions where acompensatory
arrangement exists forthebuyer, construction ofareasonable pricemaybedetermined bytheauthorities
whether thecondition ofthegood waschanged ornot. TheGATT provision isnotwritten inthe
imperative.G/ADP/W/93/Suppl.1
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Question
Inthelightoftheimperative phrasing initsregulation, howdoesNewZealand expect to
guarantee theflexible approach implied byArticle 2.3oftheGATT Agreement withregard tothe
determination oftheappropriate export pricefortransactions which didnottakeplace atarm'slength?
12. Absence ofexport price: Article 4(2)(b) NewZealand Act
InthisArticle, theimperative form"...shall..."isusedagain forthecasewhere there isno
export price: heretheexport price shallbedetermined insuchamanner astheSecretary considers
appropriate. However, Article 2.3oftheGATT Agreement usesthelessforceful term"...may...".
Question
Whyisthisso?
13. Insufficient sales: Article 5(2)(a), (b)and(c)oftheNewZealand Act
Theconditions fordeciding thatthenormal value cannot bedetermined aretoovague.
Footnote 2inArticle 2.2oftheGATT Agreement provides fora"5percentthreshold" fordeciding
onthequestion ofaninsufficient volume ofdomestic sales. TheNewZealand rules donotmention
this.
Question
WillNew Zealand alteritsprovisions toinclude thedetails inArticle 2.2oftheGATT
Agreement, suchasthe5percentthreshold fordomestic sales?
14. Normal value: Article 5(6)oftheNewZealand Act
TheNewZealand rulesdonotdefine thelength oftimewhich should normally beconsidered
tobe"anextended period oftime". TheGATT Agreement (Article 2.2.1, footnote 4)usesthemeasure
ofnormally oneyearbutinnocaselessthansixmonths.
Question
WhydoestheNewZealand Actnotinclude theGATT Agreement 'sdefinition of"anextended
period oftime" inrelation todetermining salesmade intheordinary course oftrade?
15. Normal value: Article 5(6)oftheNewZealand Act
TheNewZealand rulesdonotdefine theterm"substantial quantity" ofthelikegoods. The
GATT Agreement (Article 2.2.1, footnote 5)specifies adefinition which theNewZealand Actdoes
notinclude.
Question
WhydoestheNewZealand Actnotinclude theGATT Agreement 'sdefinition of"substantial
quantities" inrelation todetermining salesmade intheordinary course oftrade?G/ADP/W/93/Suppl.1
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16. Currency conversion: Article 5(3)oftheNewZealand Act
Thefaircomparison provisions oftheNewZealand Actdonotinclude consideration ofcurrency
conversion, asstipulated inArticle 2.4.1 oftheGATT Agreement.
Question
Whyisthisso?
17. Dumping margins: Articles 5(3)and14(4) oftheNewZealand Act
TheNewZealand rules contain noreference totheprovisions ofArticle 2.4.2 oftheGATT
Agreement where theuseofweighted averages ordirect transaction-by-transaction comparisons in
thecalculation ofthedumping margin isdescribed.
Question
Whyisthisso?
18. Injury andcumulation
TheNewZealand Actappears tocontain noprovisions which mirror therulesinArticle 3.3
oftheGATT Agreement onthecumulation oftheeffects ofimports from more thanonecountry.
Question
Whyisthisso?
19. Injury from factors other thantheallegedly dumped goods: Article 8(2)(e)(iii) ofthe
NewZealand Act
Question
Does NewZealand intend totakeaccount ofrestrictive trade practices between NewZealand
producers within NewZealand inassessing otherinjury factors? Thewording usedinArticle 8(2)(e)(iii)
oftheNewZealand Actisunclear onthispoint.
20. Threat ofinjury
TheNewZealand Actdoesnotoffer thedetail ondetermining thethreat ofinjury which is
contained inArticle 3.7oftheGATT Agreement.
Question
Whyisthisso?