RESTRICTED
WORLD TRADE G/ADP/W/107
G/SCM/W/116
ORGANIZATION 25October 1995
(95-3272)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BYTHE
EUROPEAN COMMUNITIES1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENT
Thefollowing communication, dated 9October 1995, hasbeenreceived fromthePermanent
Mission ofMalaysia.
_______________
1. Article 2.1(b)
Q. (i) Inwhatinstances would theCommission determine thatparties which appear tobe
associated ortohaveacompensatory arrangement witheachother arenotaffected
bysuchrelationship?
(ii) Other thantheunreliability oftheexport price duetoassociation oracompensatory
arrangement between theexporter andtheimporter orathird party, inwhat other
instanceswilltheCommissionconsiderthatthepartiesareaffectedbysuchrelationship?
2. Article 2.6(i)
Q. Whether determination ofSGAbased onweighted average oftheactual amounts determined
forother exporters orproducers subject toinvestigation inrespect ofproduction andsalesof
thelikeproduct inthedomestic market ofthecountry oforigin canleadtoanartificially high
orunrealistic profit margin?
Q. HowsafewilldeterminationofSGAbasedonweightedaverageoftheactualamountsdetermined
forotherexporters orproducers subjected under theinvestigations willnotleadtoanartificially
highorunrealistic profit margin ascompared toSGAdetermined onweighted average ofthe
actual amounts incurred andrealized byother exporters orproducers under theinvestigations?
3. Article 2.6(ii)
Q. (i) Whether thephrase "theactual amounts applicable toproduction andsales" iswide
enough tocover "theactual amounts incurred andrealized bytheexporters or
producers"?
(ii) Whether thephrase "intheordinary course oftrade" usedinArticle 2.6(ii) iswide
enough tocover salesbelow cost?
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(iii) Whether thedetermination ofactual amounts applicable toproduction andsales, in
theordinary course oftradecanenable theCommission toobtain thedetailed costand
price information oneachindividual itemproduced for"thesame general category
ofproducts" which isbroader thanthelikeproduct under investigation?
4. Article 2.10(c)
Q. Whether "theconsistent anddistinct differences infunctions andprices oftheseller forthe
different levels oftradeinthedomestic market oftheexporting country" isanexhaustive method
todemonstrate thatthedifference between theleveloftradeoftheexport priceandthenormal
value hasaffected price comparability?
5. Article 2.11
Q. (i) Whether theCommission hastoprovide anexplanation whythepatterns ofexport
prices which differ significantly among different purchasers, regions ortimeperiods
could notbetaken intoaccount appropriately bytheuseofaweighted average-to-
average ortransaction-to-transaction comparison before itreverts tothemethod of
comparing anormal value established onaweighted average basis against prices of
allindividual exports transaction totheCommunity?
(ii) What istherationale forthisprocedure?
6. Article 3.5
Q. (i) Whether factors which havenocausal linktoaparticular anti-dumping investigation
canbeconsidered inthedetermination ofdumping inthatparticular anti-dumping
investigation?
(ii) Whether theCommission canimpose onanexporter orproducer ananti-dumping duty
higher thantheinjury margin caused bythatexporter orproducer through dumping
inorder tomeetwiththeinjury thatisaffecting theCommunity industry which injury
isbeyond thatcaused bythatexporter orproducer.
7. Article 7.7
Q. (i) What istherationale toimpose provisional anti-dumping measures for:
(a) Sixmonths intheordinary casewhen theWTO Agreement onAnti-Dumping
specifically limits ittoaperiod notexceeding fourmonths?
(ii) Sixmonths andmaybeextended forafurther period ofthree months orimmediately
beimposed forninemonths upon request byexporters representing asignificant
percentage ofthetrade involved orthattheydonotobject upon notification bythe
Commission when theWTO Agreement onAnti-Dumping onlylimits ittosixmonths?
(iii) Inwhat instance would theCommission issue notification fortheapplication ofa
provisional measure ofsixmonths andmaybeextended byafurther ninemonths or
imposed anine-month period?G/ADP/W/107
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(iv) Why were these instances notexpressly provided forinthisArticle forguidance to
anyinterested parties affected bysuchlength ofimposition ofprovisional anti-dumping
measures?
(v) Would thelonger period oftheimposition oftheprovisional anti-dumping measures
ascompared totheperiod applicable under theWTO Agreement onAnti-Dumping
asstated inparagraphs (i)and(ii)above caused delay totheexpeditious finalization
oftheinvestigation inquestion?
8. Article 8.4
Q. (i) What istherationale ofrequiring aparty offering anundertaking toprovide anon-
confidential version ofsuchundertaking tomake available tointerested parties tothe
investigationwhenitistheCommissionwhowilldeterminewhethersuchanundertaking
issufficient tostoptheinjury caused bysuchdumping oftheperson offering such
anundertaking?
9. Article 9.1
Q. (i) Whether acomplainant representing theCommunity industry isfreetowithdraw his
complaint atanytimeduring theinvestigation andprior tothedetermination ofthe
definitive dutyorthepositive preliminary findings, asthecasemaybe?
(ii) Cananalleged injury alleged inadumping complaint besaidassubsisting when such
complaint iswithdrawn?
(iii) Unless investigation isinitiated bytheCommission inaccordance withArticle 5.6,
cananinvestigation proceed without acomplaint?
(iv) Whenthecomplainantwithdrawshiscomplaint,whydoesArticle9.1makenoreference
fortheCommission toinitiate proceedings under Article 5.6ifitdetermines thatthe
interest oftheCommunity industry deserves theCommission toproceed onthe
investigation since there isnolonger acomplaint subsisting toenable aninvestigation
tobecarried out?
(v) When theCommunity industry nolonger complains suffering injury duetothealleged
dumping under investigation bythewithdrawal oftheirwritten complaint, whatinterest
oftheCommunity industry canbesaidisinsuch peril which would justify the
Commission toproceed withtheinvestigation?
10. Article 9.2
Q. (i) Towhatextent cantheAdvisory Council object ordisagree withtherecommendation
ordecision oftheCommission?
(ii) Whether theprocedure requiring aperiod ofonemonth tolapse orunless theCouncil
otherwise decides ontherecommendation bytheCommission toterminate the
investigation soastoenable theproceedings tostand tobeterminated, cancause
unnecessary delay tothepreliminary determination, especially where thedumping
margin isdeminimis ortheimports volume were negligible; ordelay forthefinal
determination, asthecasemaybe?G/ADP/W/107
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11. Article 9.3
Q. (i) Isthere anydistinction between theeffect oftermination ofaninvestigation ifthe
dumping margin isdeminimis under theWTO Agreement onAnti-Dumping as
compared totheeffect oftermination ofaninvestigation under thisArticle where the
dumping margin isalsodeminimis ?Why?
(ii) When aninvestigation against anexporter orproducer isterminated, thewhole anti-
dumping proceedings areatanend.What isthelegalbasisandrationale toreinvestigate
ananti-dumping proceeding automatically against thatexporter orproducer without,
either afresh written complaint under Article 5.1orafreshinitiation ofinvestigation
under Article 5.6inareview proceeding forthatcountry?
(iii) Whether itisobvious thatsuchprocedure isultravirestheWTO Agreement onAnti-
Dumping ondeminimis rule?
12. Article 10.3
Q. (i) Where thedefinitive dutyislower thantheprovisional duty, whymust thedutybe
recalculated instead ofthedifference refunded totheparty depositing thesecurity for
theprovisional dutythereof?
(ii) Where thefinaldetermination isnegative, should theprovisional dutyberefunded
totheparty depositing thesecurity forsuchprovisional duty?
(iii) Where thefinaldetermination isnegative, whether thephrase "theprovisional duty
shallnotbeconfirmed" iswideandclearenough tomean thatthesecurity deposit for
theprovisional dutyberefunded totheparty issuing suchsecurity?
13. Articles 11.2, 11.2(a), 11.2(b), 11.2(c), 11.3, 11.4(b) and12.2
Q. (i) What isthedefinition of"Community producer"?
(ii) Why thewords "Community producer" areusedinstead of"Community industry"
asdefined inArticle 4?
(iii) WhydoestheEClegislation usethewords "Community industry" instead of"domestic
industry" oftheCommunity inorder tobeconsistent withthelanguage oftheWTO
Agreement onAnti-Dumping?
14. Article 11.6
Q. (i) When adefinitive dutyagainst anyparty isrepealed inareview, thatparty shallno
longerbesubjectedtosuchanti-dumpingproceedings.Onwhatlegalbasisandrationale
canthatparty besubjected toanautomatic reinvestigation inasubsequent review in
theabsence ofanycomplaint ornotice bytheCommission under Article 5.6?
(ii) Whether thisprovision andprocedure would amount toultraviresArticle 11.2ofthe
WTO Agreement onAnti-Dumping which states that"ifasaresult ofareview, the
authorities determine thattheanti-dumping dutyisnolonger warranted, itshallbe
terminated immediately"?G/ADP/W/107
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15. Article 11.10
Q. (i) Whether itwould suffice fortheCommission, inconstructing theexport price, calculate
theexport price withnodeduction fortheamount ofanti-dumping duties paidby
considering "anymovement intheresale prices asreflected inthesubsequent selling
prices" rather than"gathering conclusive evidence thatthedutyisreflected intheresale
price andthesubsequent selling prices intheCommunity"?
(ii) Whether thedifferences ofwords orphrases usedinthisArticle ascompared to
Article 6.3.3 oftheWTO Agreement onAnti-Dumping amounts toaninconsistency
between thetwoprovisions?
16. Article 12
Q. (i) Under which provision oftheWTO Agreement onAnti-Dumping canthisprovision
besupported when neither theAgreement northeGATT itselfprovides forsuchanti-
absorption proceedings?
(ii) Isitafairtrade practice fortheCommission toadopt thisprocedure when WTO
Members havenotevendiscussed noradopted thisprovision which iscontrary tothe
jointspirit andunderstanding oftheWTO Agreement onAnti-Dumping?
17. Article 13
Q. What isthelegalbasisfortheintroduction ofanti-circumvention provisions intheEC's
legislation? Canduties imposed pursuant tothisArticle bejustified under theAnti-
Dumping Agreement?
18. Article 14(4)
Q. (i) Under which provision oftheWTO Agreement onAnti-Dumping ortheGATT itself
allows suspension ofanti-dumping measures foraperiod ofninemonths ortoan
extension ofnotexceeding oneyearinview ofatemporary change inthemarket
conditions toanextent thatinjury would beunlikely toresume asaresult ofthe
suspension?
(ii) Isitnotobvious thatthesuspension oftheapplication oftheprovisional dutyfora
period ofninemonths oranyextension thereof solongasitdoesnotexceed 12months
isattributing delay totheexpeditious disposal oftheanti-dumping investigation which
wasnever anticipated bytheWTO Agreement onAnti-Dumping?
(iii) Whether suchprovision isultraviresArticle 11.1and11.2oftheWTO Agreement
onAnti-Dumping?
19. Article 14(5)
Q. Doesregistration ofimports imply aformofprovisional measure? Could theECprovide details
ontheimplementation ofthisparticular Article?G/ADP/W/107
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20. Article 16.1
Q. CantheECconfirm thatforthepurposes ofverification visits, therequirements ofArticle 6.7
andtheprocedures laiddown inAnnex 1oftheAnti-Dumping Agreement willbeobserved?
21. Articles 17(1) and17(2)
Q. (i) TheAnti-Dumping Agreement restricts thepossibility ofusing sampling onlyin
situations where thenumber ofexporters, producers, importers ortypes ofproducts
involved istoolarge. Could theECexplain whytheyhaveexpanded thescope of
sampling tocover situations where 'transactions 'aretoolarge?
(ii) Whether there isanypossibility fortheCommission toextend thethree week period
forexporters orproducers orother interested parties inmaking themselves known and
providing information totheCommission forsampling purposes ifitappears thatsuch
extension isreasonable insuchsituations?
22. Article 4.3
Q. Does theconstitutional lawoftheECprevent imposition ofanti-dumping duties toaregion?
Ifnot,whatisthebasis forlevying duties totheECasawhole asenvisaged inArticle 4.3
when theCommunity industry hasbeeninterpreted asreferring toproducers inacertain region?
23. Article 5.7
Q. According toArticle 5.8oftheAnti-Dumping Agreement, investigation should beterminated
ifthevolume ofimports fromacountry islessthan3percentoftotalimports unless negligible
imports collectively account formore than7percentoftotalimports. What isthejustification
forusing athreshold of1percentand3percentrespectively intheEClegislation?