RESTRICTED
WORLD TRADE G/ADP/W/130
G/SCM/W/139
ORGANIZATION 24October 1995
(95-3232)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFNEW ZEALAND1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 12October 1995, hasbeenreceived fromthePermanent
Mission ofKorea.
_______________
Questions concerning theAnti-Dumping legislation ofNewZealand
1. General questions
(1) Incases where there arenorelevant provisions inthedomestic legislation, doesthe
WTO Agreement apply?
(2) Iftheprovisions oftheexisting domestic legislation donotconform totheWTO
Agreement, dotheprovisions oftheWTO Agreement apply?
2. Market viability
(1) WTO A-DAgreement Article 2.2,footnote 2stipulates:
"When there arenosales...,or...because oftheparticular market situation orthe
lowvolume ofthesalesinthedomestic market oftheexporting country ...".
"Sales ofthelikeproduct destined forconsumption inthedomestic market ofthe
exporting country shall...ifsuchsalesconstitutes 5percentormore ofthesalesof
theproduct under consideration totheimporting Member, ...".
(2) Therelevant NewZealand Act5(2)stipulates:
"...thenormal value ofgoods imported ...cannot bedetermined ...(a)there isan
absence ofsales...(b)thesituation ...arenotsuitable ...".
1G/ADP/N/1/NZL/2-G/SCM/N/1/NZL/2G/ADP/W/130
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(3) Questions
- TheWTO Agreement stipulates thelowvolume ofsalesasacondition fornot
using domestic price. Asastandard todetermine lowvolume, theWTO
Agreement requires atestofwhether domestic salesconstitute 5percentor
more ofexport sales. New Zealand 'sActdoesnotcontain the5percent
standard.
- DoestheNewZealandA-Dauthoritydeterminenormalvolumewithconstructed
value orthirdcountry export price evenwhen domestic salesconstitute more
than5percentofexport sales? What isthestandard fortheSecretary to
determine whether domestic price issuitable foruse?
3. Sales below cost-substantial quantity/extended period
(1) WTO A-DAgreement Article 2.2.1, footnotes 4and5stipulates:
"The extended period oftimeshould normally beoneyearbutshallinnocasebeless
thansixmonths".
"...insubstantial quantities when theauthorities establish thattheweighted average
selling price of...isbelow theweighted average perunitcost,orthatthevolume ...
notlessthan20percentof...".
"Ifprices which arebelow perunitcostsatthetimeofsaleareabove weighted average
perunitcosts fortheperiod ofvisitation, suchprices shallbeconsidered toprovide
forrecovery ofcosts within areasonable period oftime".
(2) Therelevant NewZealand Act5(6)stipulates:
"...foranextended period oftimeandinrespect ofasubstantial quantity oflikegoods,
...".
(3) Questions
- There arenodefinitions of"extended period", "substantial quantity" or
"reasonable period oftime" inNewZealand 'sAct.
- What isthestandard inNewZealand 'sA-DActfordetermining "extended
period oftime" and"substantial quantity"?
4. Start-up costadjustment
(1) WTO A-DAgreement Article 2.2.1.1 stipulates:
"Unless already reflected inthecostallocations under ...,costshallbeadjusted ...
forthose non-recurring items ...orforcircumstances inwhich costsduring theperiod
ofinvestigation areaffected bystart-up operations".G/ADP/W/130
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(2) NewZealand Act
- Notfound.
(3) Questions
- Does NewZealand 'sActpermit adjustment ofstart-up cost?
- Ifitdoes, howdoesNewZealand 'sA-Dauthority calculate start-up cost?
(Please refertofootnote 6oftheWTO Agreement.)
5. Amounts forSG&A,profit.
(1) WTO A-DAgreement Article 2.2.2 stipulates:
"...theamounts foradministrative, selling andgeneral costs andforprofits shallbe
based onactual datapertaining toproduction andsales...".
When suchamounts cannot bedetermined onthisbasis ...
(i) theactual amounts ...bytheexporter ...ofthesame general category of
products;
(ii) theweighted average of...byother exporters ...ofthelikeproduct;
(iii) "anyother reasonable method, provided thattheamounts forprofit ...shall
notexceed ...normally realized byother exporters onsalesof...thesame
general category ...".
(2) Therelevant NewZealand Act5(2)(d)(ii) stipulates:
"(A) Such amounts astheSecretary determines ...reasonable amounts for
administrative andselling costs ...and;
(B)anamount ...profit normally realized onsales ofgoods ofthesame general
category ...".
(3) Questions
- How doestheSecretary determine "reasonable amounts" forSG&A?On
whatdatawillsuchcostcalculation bebased?
6. Comparison ofprices
(1) WTO A-DAgreement Article 2.4.2 stipulates:
"Subject to...,theexistence ofmargins ofdumping ...shallnormally beestablished
onthebasis ofacomparison ofaweighted average normal value withaweighted
average of...export ...or...onatransaction ...to...transaction basis".G/ADP/W/130
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(2) NewZealand Act
- Notfound.
(3) Questions
- How doesNewZealand 'sA-Dauthority compare normal value andexport
price?
7. Cumulative assessment ofimports
(1) WTO A-DAgreement Article 3.3stipulates:
"Where imports ofaproduct frommore thanonecountry ...,maycumulatively assess
theeffects ofsuchimports onlyiftheydetermine that:
(a)themargin ofdumping ...ismore thandeminimis ...andthevolume ofimports
...isnotnegligible ...and(b)acumulative assessment ...isappropriate ...".
(2) NewZealand Act
- Notfound.
(3) Questions
- Does NewZealand cumulatively assess theeffects ofimports frommore than
onecountry?
- Under whatconditions doesNewZealand cumulatively assess theeffects?
8. Sampling
(1) WTO A-DAgreement Articles 6.10, 6.10.2 stipulate:
"...incases where thenumber ofexporters, ...issolarge astomake such a
determination impracticable, theauthorities maylimit...toareasonable number of
interested parties or...byusing samples which arestatistically valid...,ortothelargest
percentage ofthevolume ..."
"Incaseswheretheauthoritieshavelimitedtheirexamination,...,theyshallnevertheless
determine anindividual margin ofdumping ...whosubmits thenecessary information
intime...".
(2) NewZealand Act
- Notfound.G/ADP/W/130
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(3) Questions
- Does NewZealand calculate therespective dumping margin foreachofthe
companies involved regardless ofthenumber ofexporters involved?
- IfNewZealand usesasampling method, doesitdetermine individual margins
ofdumping forexporters whowerenotselected butsubmitted information?
9. Deminimis margin/negligible volume
(1) WTO A-DAgreement Article 5.8stipulates:
"...There shallbeimmediate termination incases where theauthorities determine that
themargin ofdumping isdeminimis ,orthatthevolume of...isnegligible. Themargin
...deminimis if...lessthan2percent....Thevolume ofdumped imports ...
negligible if...lessthan3percent...".
(2) Therelevant NewZealand Act11(2)stipulates:
"(a)themargin ofdumping islessthan2percent...
(c)thevolume ofimports of...isnegligible ...".
(3) Questions
- What isthestandard fordetermining negligible volume inNewZealand 'sAct?
10. Newcomer review
(1) WTO A-DAgreement Article 9.5stipulates:
"Ifaproduct issubject toanti-dumping duties ...,theauthorities shallpromptly carry
outareview ...foranyexporters orproducers intheexporting country, ...whohave
notexported theproduct to...during theperiod ofinvestigation, ...
Noanti-dumping duties shallbelevied onimports from suchexporters orproducts
while thereview isbeing carried out".
(2) Therelevant NewZealand Act14(8) stipulates:
"The Secretary may, ...andshall, where requested todosobyaninterested party
thatsubmits positive evidence justifying theneedforareview, ...".
(3) Questions
- Isthereview fornewexporters included inArticle 14(8) ofNewZealand 's
Act?
- Does NewZealand levyanti-dumping duties onimports fromnewexporters
while thereview isbeing carried out?G/ADP/W/130
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11. Duration andreview ofanti-dumping duties
(1) WTO A-DAgreement Article 11.3stipulates:
"Notwithstanding ...,anydefinitive anti-dumping dutyshallbeterminated onadate
notlaterthanfiveyears ...,unless theauthorities determine inareview initiated before
thatdate...or...within areasonable period oftimeprior tothatdate...".
(2) Relevant NewZealand Act14(8), (9)stipulates:
"Anti-dumping duty...shallcease tobepayable on...thatisfiveyears after...
(a) Thedateofthefinaldetermination ...or
(b) Thedateofnotice ofanyreassessment ...following areview carried outunder
sub-section (8)...".
(3) Questions
- DoesNewZealandreviewtheneedforcontinuedimpositionofananti-dumping
measure before itisterminated, ordoesthemeasure automatically lapse after
fiveyears from itsimposition?
- Isthereview inaccordance withArticle 14(8) oftheActpossible atanytime,
orshould areasonable period oftimehaveelapsed?