RESTRICTED
WORLD TRADE G/ADP/W/113
G/SCM/W/122
ORGANIZATION 20October 1995
(95-3185)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYTHE GOVERNMENT OFTHAILAND1
CONCERNING THE NOTIFICATION OFAUSTRALIAN LAWS AND REGULATIONS2
Thefollowing communication, dated 5October 1995, hasbeenreceived fromthePermanent
Mission ofAustralia.
_______________
Q.1 Excluded Subsidies
TheSubsidies Agreement specifically provides thattheexemption ofanexported product from
duties ortaxes borne bythelikeproduct when destined fordomestic consumption, ortheremission
ofsuchduties ortaxes inamounts notinexcess ofthose which haveaccrued, shallnotbedeemed to
beasubsidy (seeArticle 1.1(a)(1)(ii) footnote 1andAnnexes IandII).
Australianlaw,however,doesnotappeartomakeanyprovisionfortheexclusionfromactionable
subsidies ofsuchexemption orremission ofduties andtaxes. SeeSection 269TAAC(1)(b) and(6)of
theCustoms Act1901.
Please explain whether Australian lawensures thatsuchanexemption orremission ofduties
andtaxes willnotbetreated asanactionable subsidy.
Answer 1
"Subsidy" isdefined in269T(1) oftheCustoms Actintheterms ofArticle 1.1oftheSCM
Agreement:
"subsidy, inrelation togoods thatareexported toAustralia, means:
(a) afinancial contribution...that ismade inconnection withtheproduction, manufacture
orexport ofthose goods andthatinvolves...(vii) theforgoing, ornon-collection, ofrevenue
(other thananallowable exemption orremission )duetothatgovernment orbody bythat
enterprise..."
1G/ADP/W/47-G/SCM/W/56
2G/ADP/N/1/AUS/1-G/SCM/N/1/AUS/1.G/ADP/W/113
G/SCM/W/122
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An"allowable exemption orremission" isdefined in269T(1) as
"(a) theexemption ofthose goods from duties ortaxes borne bylikegoods destined for
domestic consumption; or
(b) theremission ofsuchduties ortaxes otherwise payable inrespect ofthose goods".
Thelegislation, therefore, contains specific provisions which reflect footnote 1toArticle 1.1
oftheSCM Agreement.
Q.2 Opportunity OfParties ToSubmit Relevant Information
Article 6.1oftheADAgreement provides thatallinterested parties inananti-dumping
investigation"shallbegivennoticeoftheinformationwhichtheauthoritiesrequireandampleopportunity
topresent inwriting allevidence which theyconsider relevant inrespect oftheinvestigation inquestion".
TheAustralian authority language which appears mostapplicable tothisWTO requirement
issection 269TC(4)(e) oftheCustoms Act1901. Thissection stipulates thataftertheComptroller has
decided toaccept adumping application, theComptroller mustinvite theinterested parties tolodge
(within 40daysafterthedateofinitiation ofaninvestigation) "submissions concerning thepublication
ofthenotice sought bytheapplication".
Because theAustralian statute doesnotmandate theuseofquestionnaires inanti-dumping
investigation, andbecause interested parties areinvited tosubmit evidence concerning thepublished
notice, itisunclear whether aforeign exporter willknow exactly whatinformation theauthority will
require inmaking itsanti-dumping determination. Thislackofinstruction maynotmeetthenotice
requirement ofArticle 6oftheADAgreement.
Please reconcile theprovision oftheAustralian lawwiththeADAgreement.
Answer 2
TheAustralian legislation doesnotcontain specific provisions relating totherequirement that
Australian authorities giveinterested parties notice oftheinformation required inananti-dumping
investigation. TheAustralian administrative procedures include providing questionnaires tointerested
parties identified asbeing importers andexporters atthetimeofinitiation ofaninvestigation. The
questionnaires clearly notify theinformation which theAustralian authorities require.3
Other interested parties mayhaveregard totheinformation contained inthepublic record to
assist inthepreparation ofsubmissions.
Q.3 Disclosure OfTheBasis OfTheDecision
Article 6.9oftheADAgreement specifies that"theauthorities shall, before afinaldetermination
ismade, inform allinterested parties oftheessential factsunder consideration which formthebasis
forthedecision whether toapply definitive measures," andthatsuchdisclosure should takeplace in
sufficient timefortheparties todefend theirinterests.
3Interested persons arerequested tocontact theSecretariat, Office 1023, Tel.7395109.G/ADP/W/113
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Under Section 269TG(3D) oftheCustoms Act1901, theMinister hastheauthority before
publishing adumping dutynotice togivenotice toanexporter thatitwould beappropriate (forthe
exporter) togiveanundertaking soastoavoid causing orthreatening material injury toanAustralian
industry producing alikeproduct. Thisprovision, however, mayfailtomeet theADAgreement
requirement forthefollowing reasons:
(i) itisnotmandatory, butmerely permissive.
(ii) itisnotdesigned toinform "interested parties oftheessential factsunder consideration
which formthebasis forthedecision."
(iii) itdoesnotprovide asufficient opportunity fortheparties todefend theirinterest.
Forexample, oneofthepurposes ofpre-determination disclosure istoensure thatministerial
errors donotleadtothemiscalculation ofdumping margins. Iftheinterested parties arenotprovided
withanopportunity tocorrect clerical errors, theymight unnecessarily suffer significant commercial
consequences.
HowdoesAustralian authority meetthedisclosure requirement under Article 6.9oftheAD
Agreement?
Answer 3
Sub-section 23A(8) oftheAnti-Dumping Authority Actrequires theAnti-Dumping Authority
(theAuthority) toplace onpublic record, before reporting totheMinister, astatement oftheessential
factsonwhich itproposes tobaseitsreport.
Sub-section 7(7)oftheAnti-Dumping Authority Actrequires that,inreaching adecision as
towhether torecommend totheMinister thatadumping dutynotice oracountervailing dutynotice
should bepublished orwhether anundertaking should beaccepted orshould besought from the
government ofthecountry ofexport orfrom theexporter, theAuthority must haveregard toany
submission thatrelates tothestatement ofessential factsplaced onthepublic record under subsection
23A(8) andthatisreceived bytheAuthority within 7daysafterplacing thestatement ontherecord.
Anysubmissions received morethan7daysafterplacing thestatement ontherecord maybedisregarded
bytheAuthority.
These provisions reflect therequirement ofArticle 6.9oftheADAgreement.