RESTRICTED
WORLD TRADE G/ADP/W/72
G/SCM/W/81
ORGANIZATION 6October 1995
(95-2967)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE EUROPEAN COMMUNITIES1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6THE AGREEMENTS
Thefollowingcommunication,received2October1995,hasbeenreceivedfromtheUnitedStates
Trade Representative.
_______________
INVESTIGATION PROCEDURES
DeMinimis Margins andNegligible Imports Article 9(3) oftheECRegulations
(G/ADP/N/1/EEC/1 Page14)provides thattheECwillfindinjury tobenegligible where thevolume
ofimports islessthanthevolume setoutinArticle 5(7)oftheECRegulations (G/ADP/N/1/EEC/1
Page10).Article 5(7)oftheECRegulations (A-D) states thatnegligible volumes "represent amarket
share below 1percent,unless suchcountries collectively account for3percent,ormore, ofcommunity
consumption". Article 5.8oftheA-DAgreement requires Members toreject apetition orimmediately
terminate aninvestigation ifthevolume ofdumped imports fromaparticular country isfound toaccount
forlessthan3percentofimports ofthelikeproduct intotheimporting member, unless imports from
suchcountries account formore than7percentintheaggregate.
1. Whyisvolume tiedto"community consumption" rather thanimport volume asspecified by
Article 5.8oftheA-DAgreement?
2. When import market penetration ishigh, willtheEC'stestresult infewer situations being
found tobenegligible thanunder thestandard forArticle 5.8?
Article 9.3oftheECRegulations (G/ADP/N/1/EEC/1 Page14)provides fortheimmediate termination
ofaninvestigation where thedumping margin islessthan2percent, expressed asapercentage of
export price. Theindividual exporter (found tohavelessthana2percentmargin) however remains
subject totheproceedings andmaybereinvestigated inasubsequent review.
3. Dotheprovisions ofECArticle 9.3(G/ADP/N/1/EEC/1 Page 14)provide fortermination
ofanentire investigation inaccordance withArticle 5.8oftheA-DAgreement ordoesthis
provision onlyexclude individual exporters from theinvestigation because ofdeminimis
margins?
1G/ADP/N/1/EEC/1 andG/SCM/N/1/EEC/1G/ADP/W/72
G/SCM/W/81
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4. Ifthisprovision onlyapplies toindividual exporters, isthere aprovision fortermination of
theentire investigation where allmargins aredeminimis (lessthan2percent)inaccordance
withArticle 5.8oftheA-DAgreement?
ADMINISTRATIVE REVIEWS
Interimreviews:Article11(3)(a)oftheECRegulations(G/ADP/N/1/EEC/1)callsforinitiation
ofaninterim anti-dumping review uponashowing of"sufficient evidence" thatthemeasure is(1)no
longer necessary or(2)nolonger sufficient tooffset dumping. Article 13(B) oftheECRegulations
(CVD) callsforinitiation ofaninterim countervailing dutyreview upon ashowing of"sufficient
evidence" (1)"substantiating theneedforsuchaninterim review" or(2)thatduties haveledtono
movement orinsufficient movement ofresale prices oftheimported product intheCommunity."
5. What levelofshowing willbeconsidered "sufficient evidence" towarrant initiation ofaninterim
review?
6. How willtheECevaluate whether ornotthere is"insufficient movement ofresale prices"
ofimports intheCommunity?
Reinvestigation: Article 12oftheECRegulations (G/ADP/N/1/EEC/1 Page17)allows the
ECto"reopen" aninvestigation and"reassess" export prices ifCommunity industry submits "sufficient
information" showing thatantidumping measures haveledto"insufficient movement inresale prices".
7. What istheA-DAgreement rationale forthisprovision?
Revocations
8. Article11(6)oftheECRegulations(G/ADP/N/1/EEC/1PAGE15)statesthat"[w]heremeasures
arerepealed forindividual exporters, butnotforthecountry asawhole, suchexporters shall
remain subject totheproceedings andmay,automatically, bereinvestigated inanysubsequent
review carried outforthatcountry pursuant tothisArticle." Ifsuch companies can
"automatically" bereinvestigated, withnoshowing ofresumed dumping required, what
distinction isthere between repeal andassignment ofazerodumping margin?
JUDICIAL REVIEW
9. TheEuropeanCommunitiesA-D/CVDregulations(G/ADP/N/1/EEC/1andG/SCM/N/1/EEC/1)
submitted totheWTO donotcontain explicit provisions forreview offinaladministrative A-D
orCVD actions, asrequired byArticle 13oftheA-DAgreement andArticle 23oftheSCM
Agreement. What provisions ofthelawallow forjudicial review ofA-D/CVD proceedings?
Implementation ofAdverse WTO Panel reports
10. What provisions under EClawhavebeenmade fortheimplementation ofWTO panel reports?G/ADP/W/72
G/SCM/W/81
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Other
Article 14.5oftheECregulations (G/ADP/N/1/EEC/1 PAGE 18)allows theCommission to"direct
thecustoms authorities totakeappropriate stepstoregister imports, sothatmeasures maysubsequently
beapplied against these imports from thedateofsuchregistration. Imports maybemade subject to
registration following arequest from theCommunity industry which contains sufficient evidence to
justify suchactions ....Imports maynotbemade subject toregistration foraperiod longer than9
months."
11. While noduties arecollected thisdoesappear tobeaprovisional measure asdefined inArticle 7
and9oftheA-DAgreement buttaken outside theconditions described intheA-DAgreement.
Could youplease explain thisdifference?
12. Registration ofimports appears tobeallowed absent thefiling ofapetition. However, itwould
appear toindicate when registration ofimports isrequested thatthefiling ofapetition is
foreseen. Isthiscorrect?
13. What would constitute "sufficient evidence tojustify suchactions?"