RESTRICTED
WORLD TRADE G/ADP/W/198
G/SCM/W/210
ORGANIZATION 28November 1995
(95-3789)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYISRAEL1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 20November 1995, hasbeenreceived from theOffice
oftheUnited States Trade Representative.
_______________
Note: Pagecitations aretodocument G/ADP/N/1/ISR/1
ANTI-DUMPING METHODOLOGY
Selection ofNormal Value Section 12(a) (Page 6)states thatnormal "price" istheprice in
theordinary course oftrade ofidentical orsimilar goods intended forconsumption inthecountry in
which theywereproduced. Section 12(a) alsostates thatsalesareoutside theordinary course oftrade
when theyareaffected byan"arrangement" or"special connection" (including control). Where sales
inthehome market arenotintheordinary course oftrade, orifmarket conditions donotallow suitable
comparisons orsalesarebelow cost, Section 12(b)(1) and12(b)(2) respectively provide foruseof
third country sales orconstructed value Section 12(c) appears toprovide analternate basis for
determining normal value.
1. How willIsrael determine whether sales toarelated party have been affected byan
"arrangement" or"special connection", asrequired bySection 12?
2. Incases where there arenotsalesintheexporting country upon which tobasenormal value
Israeli lawallows normal value tobebased onthe"highest priceofidentical goods exported toathird
country" (Section 12(b)). TheA-DAgreement requires thatthethirdcountry price berepresentative
(A-D Agreement Article 2.2)could youplease explain thisapparent inconsistency?
3. Could youplease explain under what conditions Section 12(c) (Page 7)would berequired?
How isthisoption fordetermining normal value consistent withA-DArticle 2.2?
Constructed Export Price
4. There doesnotappear tobeanyprovision under Israeli lawforconstructing anexport price.
Isthisaccurate? Ifnot,could youplease explain howanexport price would beconstructed?
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Adjustments
5. Section 14(page 7)provides for"equalizing" theexport pricetothenormal pricebycomparing
undersimilarcommercialconditions,bytakingintoaccountdifferenttermsofsale,includingdifferences
inindirect taxes, andanyother factors. How willIsrael address specific adjustments (i.e.level of
trade) under thisprovision inaccordance withArticle 2.4oftheA-DAgreement?
Price Averaging
6. TheTrade Levies Lawdoesnotcontain aprovision addressing price averaging. How will
Israel compare normal value toexport price?
CV/COP -General Approach
7. What willbethestandards (i.e.period oftime, substantial quantities, recovery ofcosts,
calculation methodologies) examined todetermine ifsales aremade below costinaccordance with
Articles 2.2.1 and2.2.2 oftheA-DAgreement?
SUBSIDIES AND COUNTERVAILING MEASURES
Definition ofSubsidy
8. Section 15(page 8)states thatanimport issubsidized when theproducer orexporter "enjoy[s]
direct orindirect subsidization fromthegovernment". Does Israel intend toelaborate onitsdefinition
ofa"subsidy" inaccordance withArticle 1.1(a)(1) oftheSCM Agreement?
Specificity
9. TheTrade Levies Lawdoesnotprovide forspecificity determinations inaccordance with
Article 2oftheSCM Agreement. How willspecificity determinations bemade?
Conferral ofBenefit andAmount ofSubsidy Section 25(b) (page 11)oftheTrade Remedies
Lawprovides thatthe"[c]ountervailing dutyshallbeattherateofpartorallofthesubsidy."
10. How willsubsidy ratecalculations bemade?
11. Section 25(a) Page10saysthat"countervailing dutyshallapply togoods ...inwhich there
isasubsidized price forthose goods". Does thismean thatIsrael willcountervail goods when the
price ofthose goods totheconsumer issubsidized?
Non-Actionable ("Green") Subsidies
12. TheTrade Levies Lawmakes noprovision fororreference tonon-actionable subsidies. How
willIsrael address non-actionable subsidies under thecurrent administrative regime?
INVESTIGATION PROCEDURES
13. Israeli lawdoesappear tocontain adefinition of"domestic industry" orprovide thresholds
forindustry support forinitiation ofcases. Could youplease explain theprocess andrequirements
forinitiation ofacaseunder Israeli law.G/ADP/W/198
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Initiation/Notification Section 18(page 8)provides forpublic notice ofinitiation inaccordance
withArticles 6.1oftheA-DAgreement and22.1oftheSCM Agreement.
14. Will provisions bemade fornotification ofinitiation ofknown exporters, theaffected
government, andother interested parties inaccordance withArticles 6.1oftheA-DAgreement and
22.1oftheSCM Agreement?
15. What provision hasbeenmade requiring notice totheaffected government prior toinitiation
ofanA-Dinvestigation inaccordance withArticle 5.5oftheA-DAgreement?
Treatment ofProprietary Information Section 8provides thataperson mayrequest confidential
treatment; ifconfidential treatment isrefused, thesubmitter maywithdraw it.Confidential information
isdefined asinformation thatifreleased would cause "damage" tothesubmitter orathirdparty.
16. Section 8(page 5-6)doesnotprovide thatpublic summaries besupplied. Does Israel have
orintend tohavespecific provisions regarding public summaries inaccordance withArticles 6.5.1
oftheA-DAgreement and12.4.1 oftheSCM Agreement?
17. Sections 9and10(page 6)allow forsecret deliberations andfortheChairman oftheCommittee
toinvite experts totheCommittee 'sdeliberations. Isanyprovision made toallow forinterested parties
tocomment onthefactsunder consideration asprovided forunder A-DArticle 6.9?
TimetableforInvestigationSection21(page9)providesthattheinvestigationistobecompleted
nolaterthan60daysafter thecomplaint wassubmitted or45daysafterthelastevidence issubmitted.
Section 23(b) requires theMinister todecide ifanA-DorCVD order willbeimposed within 30days
ofthecompleted investigation.
18. Isthere anyrequirement under Israeli lawwhich requires A-DorCVD investigations tobe
completed within 12months, or18months withanextension, inaccordance withArticles 5.10ofthe
A-DAgreement and11.11 oftheSCM Agreement?
AllOthers Rate
19. TheTrade Levies Lawdoesnotappear toprovide forthecalculation ofarateforexporters
notindividually investigated asprovided forinArticle 9.4oftheA-DAgreement. Incircumstances
where itisrequired, howwillansucharatebecalculated?
Provisional Measures Section 28provides forprovisional measures iftheCommissioner
determines, "inhisopinion", thatgoods areor"areabout tobe"dumped orsubsidized, andinjury
exists. Thedeposit isestimated bytheCommissioner.
20. When canaprovisional measure beimposed under Israeli law?
21. How longmaythose measures beinforce?
22. Section 21(b) page9allows forcompletion ofwork nolaterthan60daysafterthefiling of
thecomplaint however A-DArticle 7.3states thataprovisional measure cannot beimposed sooner
than60daysfrom thedateofinitiation. Canyouplease explain thisapparent inconsistency?
DeMinimis Margins andNegligible Imports Section 23(a) provides thatanA-DorCVD
order maybeimposed ifmargins andinjury aredetermined.G/ADP/W/198
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23. Whyistherenoprovision requiring immediate termination ofaninvestigation where margins
aredeminimis orimport volumes arenegligible inaccordance withArticles 5.8oftheA-DAgreement
and11.9oftheSCM Agreement?
Undertakings
24. Section20(a)(Page9)allowsforundertakingsbutdoesnotspecifythatapreliminaryofdumping
orinjury isrequired prior toaccepting anundertaking (asrequired byA-DArticle 8.2)orthatan
exporter canrequest thattheinvestigation becompleted (asrequired byA-DArticle 8.4). Could you
please explain theprocedures andsafeguards under Israeli lawforentering intoanundertaking?
Nature ofDeposit/Assessment System
25. Article 9.3.2 oftheA-DAgreement requires thatwhen theamount ofanA-Ddutyisassessed
onaprospective basis, provision mustbemade forrefund uponrequest ofdutypaidinexcess ofthe
amount ofdumping. IsSection 28intended toprovide forthisrequirement?
26. Section 31(c) provides that,afterare-examination, theMinister mayleave theorder ineffect,
change it,orcancel it.What arethestandards bywhich theMinister makes these determinations?
NewShippers
27. TheTrade Levies Lawdoesnotprovide foranexpedited review ofnewshippers inaccordance
withArticle 9.5oftheA-DAgreement. How willnewshippers bereviewed?
Sunset Section 27(a) provides thatA-D/CVD duties "shall bevalid foraperiod ofthreeyears
from thedateofitsimposition unless ashorter period isprescribed intheorder" inaccordance with
Articles 11.3oftheA-DAgreement and21.3oftheSCM Agreement.
28. Section 27provides thatA-D/CVD duties maybereimposed afterthesunset termination date
"upon thecommittee 'srecommendation ...iftheconditions foritsimposition continue toexist". What
arethese"conditions" andhowwilltheybedetermined? Whyistherenoprovision requiring areview
andadetermination toreimpose duties inaccordance withArticles 11.3oftheA-DAgreement and
21.3 oftheSCM Agreement?
INJURY
Standard forInjury -Factors Considered
29. Section 23(a)(2) oftheTrade Levies lawprovides thattheMinister mayimposed anA-Dor
CVD ifhedetermines amargin exists andthat"material damage hasbeenorisliable tobecaused".
What ismeant by"material damage"? Howdoesthis"material damage" differ from"material injury"
asdefined inArticle 3,note9,oftheA-DAgreement? What arethefactors considered inthe"material
damage" determination?
Volume ofImports
30. TheTrade Levies Lawdoesnotprovide explicitly forconsideration ofimport volumes inthe
injury determination inaccordance withArticle 3.2oftheA-DAgreement. HowwillIsrael provide
forthisconsideration?G/ADP/W/198
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Prices ofDumped Products
31. TheTradeLeviesLawdoesnotprovideexplicitlyforconsiderationofpricesofdumpedproducts
intheinjury determination inaccordance withArticle 3.2oftheA-DAgreement. How willIsrael
provide forthisconsideration?
Degree ofDumping Margin
32. TheTrade Levies Lawdoesnotprovide explicitly forconsideration ofcertain economic factors,
including themagnitude ofthemargin ofdumping, intheinjury determination inaccordance with
Article 3.4oftheA-DAgreement. How willIsrael provide forthisconsideration?
Condition oftheDomestic Industry
33. Article 3.4oftheA-DAgreement requires aconsideration ofvarious enumerated economic
factors. TheTrade Levies Lawcontains nosuchlistoffactors oranyrequirement thatsuchfactors
beconsidered. Howdoestheabsence ofarequirement toconsider suchfactors comport withArticle 3.4
oftheA-DAgreement?
Implementation ofAdverse WTO Panel Reports
34. IfIsrael chooses toimplement anadverse WTO panel report, arethere anyprovisions under
Israeli lawspecifically forimplementing thepanel reports?