RESTRICTED
WORLD TRADE G/ADP/W/309
G/SCM/W/317
ORGANIZATION 1April 1996
(96-1148)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYAUSTRALIA1
CONCERNING THE NOTIFICATION OFLAWS AND
REGULATIONS OFICELAND2
Thefollowing communication dated 21March 1996, hasbeenreceived from thePermanent
Mission ofIceland.
_______________
1. Howdotheprovisions offree-trade agreements affect thewayinwhich Iceland implements
itsanti-dumping andcountervailing legislation?
Reply
According totheEEAAgreement A-DandCVD arenotallowed. Inthefreetradeagreements
between theEFTA states andanumber ofthirdcountries theseremedies areprovided forinaccordance
withArticle VIofGATT. Ithowever imposes stronger obligations onthecontracting parties for
consultations.
2. What guidance isprovided toensure thatunder Article 4,thedefinition ofsubsidy andof
countervailable subsidy conform totheSubsidies Agreement?
Reply
Icelandadherestotheso-calleddualisticsystemintheapplicationofinternationallawtoIcelandic
domestic law. Inprinciple domestic actsarerequired togiveinternational law,including treaty
obligations, direct legal effects within theIcelandic legal system. However itisawellestablished
principle incourt cases thatdomestic legislation mustbeinterpreted inaccordance withinternational
lawandinternational obligations which Iceland hasundertaken. Thisprinciple isfurther strengthened
intheRegulation No.351/1994 onA-DandCVD measures, Article 1paragraph 2,which specifically
states thatdueconsideration mustbegiven toprovisions ofinternational agreements towhich Iceland
isaparty.
TheIcelandic A-DandSCM legislation which predates theentry intoforce oftheWTO
Agreements, ispresently under review. TheIcelandic authorities fullyrealise thediscrepancies between
thelegislation andtheAgreements. Thiswillbefullytaken intoaccount inthereview andthenew
legislation willbefullycompatible withtheA-DandSCM Agreements.
1G/ADP/W/222-G/SCM/W/232.
2G/ADP/N/1/ISL/1-G/SCM/N/1/ISL/1G/ADP/W/309
G/SCM/W/317
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TheIcelandic authorities areaware ofthelimited definition ofsubsidies intheRegulation in
comparison withrelevant provisions intheSCM Agreement. Thiswillbedulyamended inthenew
legislation soastoreflect these provisions intheAgreements more fully. Inlightoftheabove the
domestic legislation willinthemeantime beinterpreted totheextent possible inlightoftheAgreements.
3. Willtherevised legislation reflect thedetail intheAnti-Dumping Agreement such asin
Articles 2.2.1, 2.4.1, and9.3.3?
Reply
Thetraditional methodology ofdrafting legislation issimilar tothatoftheEuropean continental
method. Theprinciples provided bythelegislation arenormally stated inbroad terms, namely general
principles andwiththeexceptions stipulated. Inthisfashion Iceland normally transforms theprinciples
ofInternationalAgreementsintoitslegislation.Consequentlyeveryprovisionofinternationalagreements
isnotstated inourdomestic legislation. Ithashowever beenthetrend lately tousepromulgation to
agreater extent. Inanyevent theAgreements willbereflected more fullyinthenewlegislation.
Since thedomestic legislation isstillunder review itisstilltooearly tostatehowexactly the
Articles referred towillbereflected.
4. WillIceland benotifying Article 8oftheCustoms Lawreferred toinArticles 9and14?
Reply
Yes.
5. Willprovision bemade inthenewlegislation fortheimmediate termination ofinvestigations
where thevolume ofallegedly dumped product isnegligible under Article 5.8oftheAnti-Dumping
Agreement?
Reply
Yes.
6. WillIceland beproviding regulations onthemethods tobeusedtocalculate thebenefit tothe
recipient asrequired under Article 14oftheSubsidies Agreement inorder implement Article 18?
Reply
Exactly howthiswillbedealtwithinthenewlegislation hasnotbeendetermined yet.Inany
casethereferred Articles willbereflected inasatisfactory manner.
7. Under Article 25whattimeperiod isprovided forexporters torespond toquestionnaires.
Reply
Itislefttothediscretion oftheinvestigating authority toprovide foratimeframe. They would
therefore takethetimelimits intheA-DAgreement intoaccount.G/ADP/W/309
G/SCM/W/317
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8. Isanaffirmative preliminary determination required before anundertaking canbeaccepted
under Article 31?
Reply
Article 24oftheRegulation foresees apreliminary examination which should establish the
existence ofdumping orsubsidy andacausal linktoinjury before theinitiation ofaformal investigation.
According toArticle 31oftheRegulation, undertakings canbeentered intoduring aninvestigation.
Therequirement ofanaffirmative preliminary determination istherefore fulfilled sincetheundertaking
canonlytakeplace afterthepreliminary examination which serves thesame purpose asanaffirmative
preliminary determination.
9. Cantheexporter alsorequest thecompletion oftheinvestigations under Article 32?
Reply
InArticle 32oftheRegulation itisstated thattheinvestigating authority candecide tocomplete
theinvestigations. There isnothing intheRegulation which prohibits theinvestigation authority to
accommodate sucharequest from theexporter were itmade. Inviewofthisandwithreference to
thereply toquestion 2,there arenoobstacles fortheauthorities togrant it.
10. Thereferenceto“preliminaryexamination”inArticle34seemstoimplythatprovisionalmeasures
canbeimposed onthebasis oftheexamination under Article 24,i.e.onthebasis oftheprima facie
decision oninitiation. Isthiscorrect? Willtherevised legislation reflect theprovisions ofArticles 7
and17oftheAnti-Dumping andSubsidies Agreements, respectively, inparticular thehigher levelof
proof required, theminimum period of60daysbefore imposition, andthemaximum periods for
maintenance ofprovisional measures?
Reply
Intheexamination andreview ofthepresent legislation concerns havebeenraised which justify
thecomment inthefirstpartofthequestion. Theanswer istherefore yesonbothaccounts. Asregards
themaximumperiodArticle118oftheCustomslawstipulatesthat“....Anti-dumpingandcountervailing
duties maybeimposed temporarily ”buttheymaynotbeimposed foralonger duration than12months.
Thisistherefore amaximum period butthere isnoobligation touseitinfull. TheRegulation,
Article 34,states thattheCommittee canrecommend suchanaction. Inapplying thisArticle andin
viewofArticle 1oftheRegulation, thetemporary measure would notbeexceeding fourmonths
11. WilltherevisedlegislationreflecttherequirementsoftheAnti-DumpingandSubsidiesAgreements
forpublic notice?
Reply
Thiswould either beelaborated intheregulation orinadministrative proceedings. Itisrealised
thatthepresent legislation ismore limited thantheAgreement onthisissue. Itisbeing examined
whether therequirements oftheA-DAgreement could bemetinadministrative proceedings.