RESTRICTED
WORLD TRADE G/ADP/W/263
G/SCM/W/273
ORGANIZATION 29January 1996
(96-0310)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYCHILE1CONCERNING
THE NOTIFICATION OFCANADIAN LAWS AND REGULATIONS2
Thefollowing communication, dated 11January 1996, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
1. When using constructed costs, pursuant toArticle 2.2.2 oftheA-DAgreement, what
methodology isusedfordetermining areasonable amount forprofit?
Thedetailed methodology fordetermining a"reasonable amount forprofit" inconstructed
costsituations isspelled outinparagraph 11(b) oftheSpecial Import Measures Regulations (SIMRs).
2. What criteria areusedtointerpret, pursuant toArticle 2.2oftheA-DAgreement, the
concept of"particular market situation" todisregard calculation ofnormal values onthe
basis ofhome market price?
Thecriteria intheSpecial Import Measures Act(SIMA) related totheconcept ofa"particular
market situation" would bethose factors deriving from subparagraph 15(a)(i) referring tosales to
purchasers notassociated withtheexporter; paragraph 15(c) which requires thatthegoods beforuse
inthecountry ofexport under competitive conditions, andparagraph 16(2)(a) which requires domestic
salestomore thanonepurchaser.
3. What procedures areused when determining normal value onthebasis ofsampling?
How isadequate transparency andnotification ofinterested parties assured?
Therules pertaining tosampling aresetoutinsection 30.3oftheSIMA. Allexporters of
goods notincluded inthepercentage orsample areinformed thattheyneednotsubmit thedetailed
informationdescribedintherequestforinformation.However,RevenueCanada'snoticeisaccompanied
byaquestionnaire (request forinformation).
Exporters notincluded inthepercentage orsample areadvised thattheymayvoluntarily submit
theinformation described intherequest forinformation forthepurposes ofdetermining amargin of
dumping. Where timepermits, voluntary submissions arereviewed andusedtodetermine amargin
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ofdumping forthepreliminary determination inrespect oftherespondent. Otherwise, thesubmission
isreviewed andusedduring thenextphase oftheinvestigation where timepermits.
Inaccordance withArticle 9.4oftheA-DAgreement, forthoseexporters whowerenotincluded
inthepercentage/sample andwhohavenotvoluntarily submitted information, themargin ofdumping
isnormally based ontheweighted average ofthemargins ofdumping found forexporters inthesame
country whowererequired toprovide information andcomplied withRevenue Canada 'srequest for
information.
4. How are"interested parties" defined. Areconsumers considered interested parties?
There isacomprehensive definition of"interested party" insection 2oftheCanadian
InternationalTradeTribunalRules,whichincludes,complainants,domesticproducers,foreignexporters,
domestic importers, associations ofdomestic producers, foreign exporters, domestic importers, foreign
governments mentioned inapreliminary determination andanyotherperson who,because thatperson 's
rights orpecuniary interests maybeaffected orforanyother reason, isentitled tobeheard bythe
Tribunal before theTribunal disposes ofaninjury enquiry orreview ofanexisting order. Thisdefinition
would include consumers ofthelikegoods. TheDepartment ofNational Revenue applies asimilar
definition withrespect toitsinformation gathering anddisclosure procedures.
5. Istheinformation contained inacomplaint verified prior toadecision toinitiate, in
accordance withArticle 5.3oftheA-DAgreement?
Inthefirstinstance, theDepartment ofNational Revenue would verify information contained
inthecomplaint (based onanexamination oftheinternal consistency ofthecomplaint, Statistics Canada
andcustoms data, consultations withtheDepartment ofIndustry, etc.).
Prior tonotice ofaproperly documented complaint, questions aregenerally raised, inwriting,
withthecomplainant inorder toseekclarification oradditional information.
Inaccordance withArticle 5.3oftheWTO A-DAgreement, oncethecomplainant hasbeen
given notice thatthecomplaint isproperly documented, subsection 31(1) oftheSIMA stipulates that
theDeputy Minister ofNational Revenue hasthirty daystodetermine whether there is:
(i) sufficient evidence thatimports arebeing dumped/subsidized; and
(ii) areasonable indication thatthedumping/subsidizing hascaused injury, retardation or
isthreatening tocause injury.
Indeciding whether ornottoinitiate onthebasis ofaproperly documented complaint, the
DMwillconsider available information concerning theaccuracy oftheinformation contained inthe
complaint.
6. DoestheSIMA contemplate cumulation inrespect ofimports from countries investigated?
Cumulation ofinjurious effects ofimports from more thanonecountry isprovided forin
subsection 42(3) ofSIMA. Theability tocumulate is,however, expressly subject tothe"deminimis"
and"appropriateness" conditions setoutinArticles 3.3and15.3 oftheWTO A-DandSCM
Agreements, respectively. Furthermore, withrespect todeveloping countries, subsection 42(4) ofthe
Actprovides thattheTribunal istobeguided byArticle 27.12 oftheSCM Agreement when making
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7. What aretherules governing thecalculation ofamounts ofsubsidy?
Detailed methodologies forthecalculation ofamounts ofsubsidy forvarious forms ofbenefits
toarecipient areprescribed, pursuant toSection 30.4oftheSIMA, inPartIIoftheSIMRs. In
accordance withtheSCM Agreement, subsection 30.4(3) provides thatan"amount ofsubsidy" does
notinclude anyamount attributable toanon-actionable subsidy.
8. How isArticle 8.2oftheA-DAgreement implemented?
Paragraph 49(2)(b) oftheSIMA states thattheDeputy Minister ofNational Revenue shallnot
accept anundertaking withrespect todumped orsubsidized goods unless theDeputy Minister hasmade
apreliminary determination under subsection 38(1) oftheAct.
9. Does Canadian legislation contemplate theconcept of"margin ofinjury" and,ifso,isit
usedinstead ofthemargin ofdumping forthepurposes ofdetermining applicable AD
duties?
Wetakethistobeareference towhether ornotCanada hasadopted thelesser dutyrulein
anti-dumping cases. Consistent withthepermissive nature ofArticle 9.1oftheWTO A-DAgreement,
which provides that"thedecision whether theamount oftheADdutytobeimposed shallbethefull
margin ofdumping orless,isadecision tobemade bytheauthorities oftheimporting country", Canada
hasnotadopted alesser dutyrule.
Thatbeing said,where theTribunal isoftheopinion thattheimposition ofanti-dumping or
countervailing duties, infullorinpart,might notbeinthepublic interest, section 45oftheSIMA,
allows theTribunal tosoadvise theMinister ofFinance withfactsandreasons insupport. Interested
persons canmake representations withrespect topublic interest andduties maybeadjusted onthe
basis ofpublic interest considerations.