RESTRICTED
WORLD TRADE G/ADP/W/158
G/SCM/W/165
ORGANIZATION 22November 1995
(95-3684)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFMALAYSIA1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 13November 1995, hasbeenreceived fromthePermanent
Delegation oftheEuropean Commission.
_______________
Countervailing dutylegislation ofMalaysia
Withregard toMalaysia 'scountervailing dutylegislation, notified on27February 1995under
Article 32.6 oftheWTO Subsidies Agreement (G/ADP/N/1/MYS/1-G/SCM/N/1/MYS/1), the
European Community would liketoaskthefollowing questions:
1. Could youexplain thelegal relationship between Countervailing andAnti-Dumping Duties
Regulations 1994andtheCountervailing Duties Act1993? What willhappen ifprovisions oftheLaw
andtheRegulations conflict?
2. CouldMalaysiaexplainwhynoprovisionintheLawortheRegulationsdealswithnon-actionable
subsidies asdefined inArticle 8oftheWTO Subsidies Agreement? HasMalaysia theintention to
provide foranexception fornon-actionable subsidies (greenlight subsidies)?
3. Could Malaysia explain whynospecificity requirements, asprovided byArticle 2oftheWTO
Subsidies Agreement, areincorporated initslegislation?
Countervailing Duties Act1993
4. Section 2(2)gives abasicdefinition ofasubsidy. However, Section 2(2)(b) states thatasubsidy
isdeemed toexistwhere "anyother conditions asmaybeprescribed havebeenmet". Could youclarify
whatthese conditions maybeandwhattherelationship isofSection 2(2)(b) toSection 2(2)(a)? How
canMalaysia reconcile Section 2(2)(b) withtheprecise criteria ofArticle 1.1oftheWTO Subsidies
Code?
5. CanMalaysia explain whyitleftoutfromitsdefinition ofasubsidy thatthisshould be"within
acountry"?
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6. Section 39(1) states thatanyinformation which isprovided onaconfidential basis byparties
toaninvestigation, shall"forgood cause shown" betreated assuchbytheGovernment. Could you
provide clarification ontheconcept "forgood cause shown"? Inthisrespect, what criteria willbe
applied ingranting arequest forconfidentiality (asstated inSection 39(7)(a))? Howdoyoureconcile
thisprovision withSection 39(4)?
7. PursuanttoSection43,ifnoapplicableinternationalobligationoncountervailingoranti-dumping
duties existbetween Malaysia andtheinterested foreign government, countervailing oranti-dumping
duties maybeimposed without regard toaninvestigation. Could youprovide clarification onthis
section andspecify howyoudefine "applicable international obligation"?
Countervailing andAnti-Dumping Duties Regulations 1994
8. Pursuant toSection 9(1), theGovernment ofMalaysia willdistribute questionnaires within
a"reasonable time" from thedateofpublication ofthenotice ofinitiation. Could youprovide more
detailed information ontheapplicable timeframe?
9. Section 14(1) states thatapetitioner maymake awritten request fortheretroactive imposition
ofcountervailing duties. Neither theLawnortheRegulations contain anyprovisions ontheprinciples
ofretroactiveimpositionofcountervailingduties.CouldMalaysiaprovideclarificationontheretroactive
imposition ofcountervailing duties? Could Malaysia explain whytheconditions ofSection 20.2of
theWTO Subsidies Agreement havenotbeenincorporated intheLawortheRegulations?
10. Section 24(2) states that"ifnocashfloweffect canbecalculated, theGovernment maymake
anestimate ofthefinancial benefit". Could Malaysia provide details onthecalculation ofthefinancial
benefit andwhatspecific criteria willbeapplied?
11. Willthecalculation oftheamount ofsubsidy according toSection 25reflect theguidelines
ofArticle 14WTO Agreement?
12. Pursuant toSection 25(1)(b) theGovernment mayuseanyotherreasonable method todetermine
when asubsidy isreceived provided thattheprescribed terminology willsignificantly distort thesubsidy
level. Could Malaysia clarify thissection?