RESTRICTED
WORLD TRADE G/ADP/W/15
G/SCM/W/22
ORGANIZATION 12July1995
(95-1958)
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 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 6July1995, hasbeenreceived from theOffice ofthe
United States Trade Representative.
_______________
Asagreed intheCommittees onAnti-Dumping Measures andSubsidies andCountervailing
Measures, please findenclosed alistofquestions thatweintend toraiseatthejointlegislative review
session oftheCommittees during theweek of17July. Ishould notethatIhavebeenadvised bymy
authorities thatwemayhaveadditional questions, particularly withrespect totheareaof"injury".
Every effort willbemade todeliver suchadditional questions toyouassoonaspossible.G/ADP/W/15
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Anti-dumping
(1) 4-6(4) oftheDeclaration doesnotappear toprovide standard constructed export price("CEP")
deductions. Ifagoodisimported byarelated importer andthensoldinidentical condition (i.e., not
further manufactured) whatprice willbeusedinthefairvalue comparison? SeeADArts. 2.3and
2.4.
(2) 4-6(4) oftheDeclaration permits thedumping margin tobebased on"anyreasonable criteria"
whenever theproducts arenotsoldinthesame condition asimported. Inwhatcircumstances doyou
intend todepart fromyournormal dumping methodology? What "reasonable criteria" willbeapplied
insuchcircumstances? SeeADArts. 2.3and2.4.
(3) 4-6(4) oftheDecree, readinconjunction with4.4(7) oftheRegulations, seems torequire
deduction ofallcosts incurred between importation andresale and"reasonable profits" onlywhere
products arenotsoldinthesame condition asimported. Under whatconditions willdeductions be
made iftheproducts aresoldinthesame condition asimported?
(4) Under 4-4(3) oftheRegulations, "reasonable profits" isnotdefined, andcould refertoprofits
whichhavenotactuallybeenmade.Howwill"reasonableprofits"bedetermined?Howisthisconsistent
withADArt.2.4,which refers to"profits accruing"?
(5) 4-6(5) oftheDecree states thattheMinister "may" adjust normal value anddumping price
fordifferences thataffect "comparability ofprice". Under whatcircumstances willtheMinister exercise
hisdiscretion tomake adjustments forsuchitems astaxes, anddifferences inphysical characteristics,
etc.? How isthisprovision consistent withADArt.2.4?
(6) How doestheMinister determine whether adifference incosts affects thecomparability of
theprices?
(7) 4-4(16) oftheRegulations provides thatadjustments tonormal value anddumping price may
beadjusted fordifferences inquantities onlywhere there is"massive" production orsales. Smaller
quantities could affect price comparability, requiring anadjustment under ADArt.2.4.Howisthis
provision consistent withADArt.2.4?
(8) "Conditions ofsale", asusedin4-6(5) oftheDecree isnotdefined. Does itinclude, e.g.,
packing andfreight?
(9) 4-4(8) oftheRegulations states thatthecomparison ofthenormal value andthedumping price,
"shall, inprinciple, bemade bymeans ofaweighted average ofvolume andprices". What does"in
principle" mean? Does Korea compare theaverage priceinKorea totheaverage priceintheexporting
country? What exceptions tothisprocedure arethere?
(10) Does 4-4(8) oftheRegulations apply inbothinvestigations andadministrative reviews?
(11) 4-4(1) oftheRegulations provides thatbelow-cost saleswillbeexcluded from normal value
when theyrepresent 20percentormore ofhome market sales, andthehome market sales, excluding
those below cost, cannot provide fortherecovery ofcosts within areasonable period oftime. In
comparison, ADArt.2.2.1 provides that"prices which arebelow costsatthetimeofsale[but]above
weighted-average costs fortheperiod ofinvestigation, "shall beconsidered toprovide forrecovery
ofcosts within areasonable period oftime". Is4-4(1) oftheRegulations meant todefine "Recovery
ofCost" differently thanADArt.2.2.1? Ifso,willKorea alsoapply thedefinition of"recovery of
costs" found inADArt.2.2.1.G/ADP/W/15
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(12) How doesKorea define theextended period oftimewithin which itwilldetermine whether
sales below costhave been made? How does Korea define the"reasonable period oftime" for
determining recovery ofcosts? SeeADArt.2.2.1.
(13) 4-4(3) oftheRegulations states thatconstructed value shallinclude "theamount ofthecosts
incurred inthenormal production process inthecountry oforigin, plusSG&Aandprofit. How
does4-4(3) oftheRegulation account fornon-recurring costs benefitting either future orcurrent
production andstart-up?
(14) 4-6(1) oftheDecree and4-4(3) oftheRegulations provide that"theamount ofprofits shall
notexceed theprofits normally realized onthesalesofproducts ofthesame general category inthe
domestic market ofthecountry oforigin". Howisthisprovision consistent withADArt.2.2.2, which
states apreference foractual dates pertaining totheproducer under investigation?
Subsidies andcountervailing duties
(15) 5-2oftheOrdinance makes noreference to"objective criteria". HowwillKorea conduct the
specificity analysis when thegranting ofthesubsidy isbased on"objective criteria", asspecified in
Art.2.1(b) oftheSCM?
Procedures
(16) 4-8(3) oftheRegulation requires thatpublic summaries ofconfidential information beprovided.
What requirements arethereconcerning thelevelofdetail which mustbeprovided inapublic summary
orconcerning when apublic summary doesnothavetobesupplied? SeeADArt.6.5.1 andSCM
Art.12.4.1.
(17) Section 4-10(4) oftheDecree states thatthedutydeposit fortheperiod during which provisional
measures areapplied mustexceed theamount oftheprovisional anti-dumping duty. Isthisatranslation
error? Ifnot,howisthisprovision consistent withADArt.7.2?Please explain howthedutydeposit
ratewillbedetermined.
(18) 4-12(1)2 oftheDecree concerning critical circumstances would permit imposition ofretroactive
duties onimports which occurred 30dayspriortoinitiation. Howisthisconsistent withADArt.10.8,
which prohibits retroactive application ofduties onimports entered forconsumption priortoinitiation?
Explain howyoudetermine whatperiod willbecovered bythecritical circumstances finding.
(19) What limitation isthere under 4-11(2) oftheDecree ontheamount ofaprice increase which
mayberequired inanundertaking?
(20) 4-11(20) oftheDecree provides forundertakings based onquantitative restrictions. Howis
thisconsistent withADArt.8.1?
(21) 13(3)oftheActallowsundertakingsbasedon,interalia,pledgesbyexporterstoceaseexporting.
Isthisapplicable tobothdumping andcountervailing dutycases? How isthisconsistent with
SCM Article 18.1(ii)?
(22) 4-11(8) oftheDecree gives theMinister discretion nottorefund provisional duties afteran
investigation issuspended, ifacontinued investigation results inanaffirmative finding ofdumping
andmaterial injury. Under what circumstances willprovisional duties notberefunded after an
undertaking isaccepted? 4-11(10) oftheDecree provides thattheMinister "may" nullify theundertaking
ifnomaterial injury isfound inacontinued investigation under 10(4) oftheAct.HowisthisconsistentG/ADP/W/15
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withADArt.8.7,which states thatundertakings shall"automatically lapse" ifthere isanegative
determination ofdumping orinjury?
(23) 4-8(5) oftheDecree permits adetermination onthebasisofthefactsavailable if"itisdifficult
toconduct theinvestigation. What consideration isgiven totherespondents 'levelofcooperation?
How isthisconsistent withADArt.6.8,which provides thatfactsavailable maybeusedwhere an
interested party refuses ordoesnotprovide access tonecessary information within areasonable period
oftime, orsignificantly impedes theinvestigation?
(24) 4-8(6) oftheDecree doesnotappear torequire consideration ofanyofthefactors listed in
ADAnnex II,suchastherequirement ofparagraph 2thattheauthorities consider the"reasonable
ability oftheinterested party torespond". Intheabsence ofexplicit provisions, howwillKorea ensure
theconformity ofitspractice withtheAgreement?
(25) 4-8(5) oftheDecree doesnotappear tolimittheuseofadverse information onlytocases where
aparty hasnotbeencooperative. Under whatcircumstances willyoubaseadetermination onadverse
information? Intheabsence ofaspecific provision, howwillKorea ensure theconformity ofitspractice
withADAnnex II,5?
(26) 4-8(5) oftheDecree doesnotappear toprovide respondents withanopportunity tocorrect
deficient submissions, asrequired byAnnex II,6oftheADAgreement. Does Korea require orallow
respondents tocorrect deficient information? Intheabsence ofaspecific provision, howwould Korea
ensure theconformity ofitspractice withtheADAgreement?
(27) 4-8(5) oftheDecree doesnotrequire theMinister togivereasons forrejecting information,
asrequired byADAnnex II,6.Intheabsence ofaspecific provision, howwillKorea ensure the
conformity ofitspractice withtheADAgreement?
(28) 4-8(5) oftheDecree doesnotrequire theMinister tousespecial circumspection inemploying
secondary information or,where practicable, check theinformation against independent sources of
information, asrequired Annex II,7oftheADAgreement. Intheabsence ofaspecific provision,
howwillKorea ensure theconformity ofitspractice withtheADAgreement?
(29) 4-9(1) oftheDecree provides for"asoleanti-dumping dutyrateorabaseimport price" to
beimposed onanexporter whofailstopresent materials, orwithrespect towhom itisdifficult to
conduct aninvestigation, orwhose information isdifficult toverify. HowwilltheMinister establish
thisrateorprice?
(30) Areeachofthethree types ofadministrative review under Section 4-14(1) oftheDecree
mandatory uponrequest, orcantheMinister determine, under 4-14(4) oftheDecree, thatsuchreviews
arenotnecessary? What factors andinformation willtheMinister consider under 14-4inmaking a
determination whether areview wasnecessary? How isthisconsistent withADArticle 9.3,which
saysthatareview "shall" takeplace?
(31) Areannual reviews mandatory pursuant to4-14(3) oftheDecree regardless ofwhether there
isarequest forareview? Thisprovision saysboththattheMinister mayconduct andshallconduct
suchareview. IftheMinister doesnothavediscretion, howisthisconsistent withADArt.9.3,which
saysthatareview "shall" takeplace?
(32) Under 4-6(3) oftheRegulation, when cananewshipper request anaccelerated review following
imposition oftheduties andhowlongwillittaketocomplete thereviews?G/ADP/W/15
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(33) WillKorea conduct newshipper inCVD cases?
(34) Neither 4-6(9) oftheDecree nor4-6(3) oftheRegulation states thatduties willnotbelevied
during newshipper reviews. Intheabsence ofanexplicit provision, howwillKorea ensure the
conformity ofitspractice withADArt.9.5,which states thatADduties shallnotbelevied onanew
shipper 'simports while thereview isbeing conducted. Explain theprocess ofcollecting ornotcollecting
duties during anewshippers review.
(35) 10(8) and4(8)oftheActprovide thatADandCVD orders andundertakings shallexpire after
fiveyears "except incases where theexpiry dataisdetermined separately bytheOrdinance". Can
theexpiry datedetermined intheorder belonger thanfiveyears"? Ifso,howisthisconsistent with
ADArt.11.3andSCM Art.21.3? Under what circumstances willtheexpiry datebedetermined
separately intheorder?
(36) Does theMinister conduct anytypeofreview prior toterminating anorder orundertaking
under 10(8) ortheAct?
Judicial review
(37) Canyouclarify whether independent judicial review isavailable inKorea forADandCVD
determinations? Ifso,please specify theprovisions inyourlawwhich mandate judicial review and
describe thetypes ofdeterminations thataresubject tojudicial review. What isthestandard ofreview
applied inthejudicial review process foreachtypeofdetermination? What aretheprocedures for
seeking judicial review ofeachtypeofdetermination?