RESTRICTED
WORLD TRADE G/ADP/W/167
G/SCM/W/174
ORGANIZATION 24November 1995
(95-3716)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYICELAND1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 14November 1995, hasbeenbeenreceived from the
Permanent 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. SinceIceland'sLegislationomitssomeimportantpointsofdetailintheAnti-DumpingAgreement,
howwillIceland ensure compliance withthese provisions? Willgreater details beprovided inthe
draft lawreferred toonthefirstpageofthenotification, andhowwillIceland ensure compliance
before thatlegislation isinplace? Inparticular, willcompliance beensured administratively, orwill
italsobethrough judicial review asprovided forunder Article 13oftheAgreement?
Also, whatistheschedule forrevision oftheexisting LawandRegulation?
3. What isthemeaning ofthebracket inCustoms LawNo.55?
4. TheGenerally Accepted Accounting Principles
Article 16ofRegulation No.351stipulates, "Allcostscalculations shallbebased onavailable
accounting data...".
Doesthishavesamemeaningasgenerallyacceptedaccountingprinciplesoftheexportingcountry
oftheAgreement Article 2.2.1.1?
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5. Provisional Measures
Article 118oftheCustoms Lawstipulates, "Such temporary duties ...maynotbeimposed
foralonger duration than12months." Thisisnotinconformance withtheAgreement, Article 7.4,
which provides that"theapplication ofprovisional measures shallbelimited ...,notexceeding four
months ...".
6. Application toTrade inServices
According toArticle 1,theRegulation isequally applicable totradeinservices. Which article
oftheAgreement authorizes this?
7. Normal Value
When therearenosalesofthelikeproduct intheordinary course oftradeandsothedumping
margin isdetermined bycomparison withaprice ofthelikeproducts exported toathirdcountry, the
Agreement requires theuseofacomparable price, whereas therelevant article ofRegulation No.351
states thatthecommission mayusethehighest price.
Using thehighest price indetermining dumping margin isnotinconformance withthe
Agreement.
8. Adjustment
Article ofRegulation No.351stipulates, "Aclaim foradjustment which isinsignificant in
relation totheprice...oftheaffected transaction shallbedisregarded. Ordinally, individual adjustments
...having aneffect oflessthan0.5percent ofthepriceofaproduct shallbeconsidered insignificant."
Which article oftheAgreement authorizes this?
9. 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."
TheAgreement stipulates fourconditions which should beconsidered, whereas Iceland 's
Regulation specifies onlytherateofincrease andexport capacity intheexporting country.
TheRegulation doesnotrequire thatthetwoother conditions provided bytheAgreement be
considered:
(a) whether imports areentering atprices that...would likely increase demand forfurther imports,
and
(b) inventories
TheRegulation needtoaccept therelevant provisions oftheAgreement.G/ADP/W/167
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10. Investigation Period
There isnoprovision stating thataninvestigation maynotbeapplied forlonger than18months.
TheRegulation needtoaccept therelevant provisions oftheAgreement.
11. Understanding
Article 8.2oftheAgreement requires theinvestigating authority tomake anaffirmative
preliminary determination before entering intoanundertaking. How doesIceland ensure conformity
ofitspractice withtheAgreement?
12. Anti-circumvention
Onwhich article intheAgreement isIceland 'santi-circumvention provision, Article 39of
theRegulation, based?