RESTRICTED
WORLD TRADE G/ADP/W/361
G/SCM/W/370
ORGANIZATION 17April 1996
(96-1385)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS POSED BYKOREA CONCERNING THE
NOTIFICATION PROVIDED BYECUADOR1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowingcommunication,dated4April1996,hasbeenreceivedfromthePermanentMission
ofKorea.
_______________
Anti-dumping legislation
1. Amounts forSG&A andProfit:
Article 6(b)ofDecision 283andArticle 5(b)ofRegistry Official No.780stipulate: “...by
considering theconstructed price ofthelikeproduct. Thisshallbebased onthecostofproduction
intheordinary course oftrade inthecountry oforigin, plusareasonable amount foradministrative
andselling costs andprofit”.
However, A-DAgreement 2.2.2. stipulates :“...theamounts foradministrative selling and
anyother costsandforprofits shallbebased onactual datapertaining toproduction andsales...When
suchamounts cannot bedetermined onthisbasis theamounts maybedetermined onthebasis of:
(i) theactual amounts ...bytheexporters orproducers ...ofthesame general category
ofproducts;
(ii) theweighted average of...byother exporters orproducers ...ofthelikeproduct ...
(iii) anyother reasonable method, provided thattheamount forprofit ...shallnotexceed
...normally realized byother exporters orproducers onsalesofproducts ofthesame
general category ...“
How willtheEcuadorian authority determine “reasonable amounts ”forSG&A profit?
Onwhatdatawillthecosts calculation bebased?
1G/ADP/N/1/ECU/1-G/SCM/N/1/ECU/1 +Suppl.1.
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G/SCM/W/370
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2. Comparison ofPrices
Article 7ofDecision 283andArticle 6ofRegistry Official No.780stipulates: “...This
margin shallbecalculated perunitofproduct imported atthedumping price”.
However, A-DAgreement 2.4.2. stipulates :“Subject to...theexistence ofmargins ofdumping
...shallnormally beestablished onthebasisofacomparison ofaweighted average normal value with
aweighted average of...export ...orbyacomparison ofnormal value andexport prices onatransaction
totransaction basis ...”
Weareoftheopinion thattheEcuadorian provisions forcomparison ofprices areambiguous.
How willtheEcuadorian authority compare normal value andexport price?
3. General:
TheEcuadorian A-Dregulation asawhole seems tobelacking inmany issues compared with
theA-DAgreement. Especially, thefollowing issues, which areveryimportant toimplement theA-D
regulation, andarenever mentioned orleave ample room foranarbitrary decision.
How willtheEcuadorian authority dealwiththese technical criteria?
- Market viability
- Sales below cost-substantial quantity/extended period
- Start-up costadjustment
- Cumulative assessment ofimports
- Standing
- Sampling
- Deminimis margin/negligible volume
- New-comer review
- Review ofAnti-dumping duties