RESTRICTED
WORLD TRADE G/ADP/W/15/Suppl.1
G/SCM/W/22/Suppl.1
ORGANIZATION 13July1995
(95-1991)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFKOREA OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6THE AGREEMENTS
Supplement
Thefollowing communication, dated 11July,hasbeenreceived fromtheUnited States Trade
Representative.
_______________
Enclosed areadditional questions concerning theinjury aspects ofKorea 'santi-dumping and
countervailing dutylegislation which weintend topursue anextweek'smeeting.
INJURY
38. Article 4-7(1)4 oftheEnforcement Decree oftheCustoms Act(“ED”)requires thattheKorean
Trade Commission ("KTC") assess whether imports have"lower[ed] prices or...prevent[ed] price
increases" forthedomestic industry.1Howisthisconsistent withArticle 3.2oftheA-DandArticle 15.2
oftheSCM Agreement, bothofwhich require ananalysis ofwhether imports suppress ordepress prices
"toasignificant degree?"
39. Article 4-7(2)-3 oftheEDrequires thattheKTC consider initsthreat analysis whether the
price ofimports "islikely todecline, orprevent increase of,theprice" ofthedomestic likeproduct.
How isthisprovision consistent withA-DArticle 3.7(iii) andSCM Article 15.7(iv) which require
ananalysis ofwhether imports willhavea"significant depressing orsuppressing effect ondomestic
prices..."?
40. InArticle 4-7(2)-3 oftheED,theKTC isdirected toassess whether there isalikelihood of
anincrease indemand formore imports. Howisthisprovision consistent withA-DArticle 3.7(iii)
andSCM Article 15.7(iv) which require thattheinvestigating authorities analyze whether theprices
ofimports would leadtoincreased demand forimports?
1Itshould benoted thatalmost alloftheinjury provisions contained intheKorean AD
legislation areincorporated intotheKorean CVD lawbyArticle 4-21oftheED. Although the
individual CVD citesarenotincluded here, these questions areintended toapply withrespect to
bothADandCVD investigations.G/ADP/W/15/Suppl.1
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41. Article 4-7(2)-2 oftheEDauthorizes theKTCtoconsider initsthreat analysis whether increases
inproduction capacity "may result inanincrease indumping". Howisthisprovision consistent with
A-DArticle 3.7(ii) andSCM Article 15.7(iii) which require thattheauthorities analyse whether
increased oravailable production capacity indicates the"likelihood ofsubstantially increased
[dumped/subsidized] exports" tothecountry inquestion?
42. Article 4-7(2)-2 doesnotrequire theKTCtotakeintoaccount the"availability ofother export
markets" when determining whether additional production capacity poses athreat tothedomestic
industry. Intheabsence ofanexplicit provision, howwould Korea ensure theconformity ofitspractice
withA-DArticle 3.7(ii) andSCM Article 15.7(iii) which require theauthorities totakeintoaccount
theavailability ofotherexport markets when assessing whether athreat isposed byavailable production
capacity?
43. Thenotified documents donotrequire theKTCtoconsider the"nature ofthesubsidy inquestion
andthetrade effects likely toarisetherefrom" asafactor initsthreat analysis. Intheabsence ofan
explicit provision, howwould Korea ensure theconformity ofitspractice withSCM Article 15.7,
which requires thattheinvestigating authorities doso?
44. Article 4(2)oftheEDand4-4(6) oftheCustoms ActRegulations (“CAR”)indicate thatthe
Ordinance ofthePrime Ministry andArticle 3-6(1) oftheCAR willdefine whatproducers arerelated
parties forpurposes ofthematerial injury analysis. Neither theOrdinance norArticle 3-6(1) were
notified. Please provide therelevant provisions ofKorean law.
45. Thenotified materials donotcontain aprovision authorizing aregional industry analysis, as
provided byA-DArticle 4.1(ii) andSCM Article 16.2. DoestheKTCintend tousearegional industry
analysis initsinjury determinations? Ifso,whatarethecriteria tobeusedintheanalysis andhow
aretheyconsistent withtheAgreements?
46. Article 4-4(4) oftheEDprovides thatMinister ofFinance andEconomy ("MOFE") "may"
suspend orterminate afinalinvestigation ifitisdetermined thatimports arenegligible. Article 4-3(2)
oftheEDprovides thattheKTC "may" reject ananti-dumping orcountervailing dutyapplication
iftheimports arenegligible. Howarethese provisions consistent withA-DArticle 5.8andSCM
Article 11.9, which provide thatinvestigating authorities mustreject ananti-dumping orcountervailing
dutyapplication orterminate aninvestigation ifimports arenegligible? Forexample, doesKorea
contemplate thatitwillleave investigations pending afteranegligibility determination withtheoption
ofresuming them iftheimports inquestion exceed 3percent atanypoint aftersuspension?
47. Korea'snegligibilityprovisionscanbeconstruedasrequiringthatthetotalvolumeofallcountries
under investigation mustbeconsidered negligible before termination oftheinvestigations isappropriate
and,insuchcircumstances, thatallongoing investigations beterminated. SeeArticle 4-4(4) ofthe
EDandArticle 4-2(2) oftheCAR. Howaretheseprovisions consistent withthose ofA-DArticle 3.3
and5.8andSCM Article 11.9and15.3, which clearly indicate thataninvestigation withrespect to
imports fromaparticular country mustbeterminated where imports fromthatcountry arenegligible.
48. Article 5-1(2) oftheCAR doesnotrequire thatacountervailing dutyinvestigation covering
imports fromadeveloping country beterminated iftheimports fromthatcountry account forlessthan
4percentoftotalimports (unless imports from allsuchcountries account formore than9percent
oftotalimports). HowwillKorea determine which countries itwilltreatas“developing countries ”
forCVD purposes? Intheabsence ofanexplicit provision, howwould Korea ensure theconformity
ofitspractice withArticle 27.10(b) oftheSCM Agreement?G/ADP/W/15/Suppl.1
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49. Thenotified documents donotcontain aprovision expressly giving allinterested parties the
right tosubmit allevidence theyfeelisrelevant totheinvestigation. Intheabsence ofanexplicit
provision, howwould Korea ensure theconformity ofitspractice withA-DArticle 6.1andSCM
Article 12.1which require thatallinterested parties begiven "ample opportunity topresent inwriting
allevidence which theyconsider relevant" totheinvestigation?
50. Article 4-8(7) oftheEDstates thatMOFE, KTC andKCA "shall" grant therequest ofany
interested party foraccess tonon-confidential material submitted byother parties orusedbythe
authorities, butthattheKorean authorities areauthorized todeny arequest if"there isaparticular
reason" fordoing so.How isthisexception consistent withtheA-DArticle 6anSCM Article 12
which require theprovision ofallnon-confidential information tointerested parties?
51. Article 4-8(8) oftheEDprovides thattheKorean authorities "may" giveaparty anopportunity
tostateitsopinion though apublic hearing. Howisthisconsistent withtheA-DArticle 6.2andSCM
12.2which provide thatallinterested parties inananti-dumping proceeding havetheright, onrequest,
toexpress theirviews andrebut other parties arguments atahearing?
52. Under Article 10(8) oftheCustoms Actand4-14(1) oftheED,anorder willbeterminated
fiveyears afterthelaterof(i)thedateofimposition oftheorder or(ii)thedateofanyreview ofthe
order, including reviews thatdonotassess whether injury islikely torecur afterexpiration oftheorder.
How isthisprovision consistent withA-DArticle 11.3andACM Article 21.3, which provide that
ananti-dumping orcountervailing dutyorder must expire fiveyears afterthedateofimposition of
theorder unless there hasbeenasubsequent review which assesses whether expiration oftheorder
would belikely toleadtoacontinuation orrecurrence ofinjury?