RESTRICTED
WORLD TRADE G/ADP/W/352
G/SCM/W/360
ORGANIZATION 15April 1996
(96-1348)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE GOVERNMENT OFTHE PHILIPPINES1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowingcommunication,dated3April1996,hasbeenreceivedfromthePermanentMission
ofHong Kong.
_______________
1. Philippines 'notification contains Republic ActNo.7843amending Section 301,Part2,TitleII,
Book 1oftheTariff andCustoms Code.
(a) What isthelegal status oftheWTO ADAgreement (theAgreement) inPhilippines?
Does ithavetheforce oflaw?
(b) ArePhilippines ADofficials required, legally orotherwise, toobserve theprovisions
oftheAgreement intheconduct ofADproceedings, ortoconsult them, forexample
ontheinterpretation ofdomestic legislation?
2. Although Republic ActNo.7843waspassed bythePhilippines legislature inDecember 1994
subsequent tothesigning oftheWTO Agreement inApril 1994, numerous Philippines provisions appear
todepart from theprovisions oftheAgreement. Notable examples areasfollows:
- Paragraph (a)authorizes theCommissioner ofCustoms toholdtherelease ofthe
questioned importations. Article 5.9oftheAgreement provides thatanADproceeding
shallnothinder theprocedures ofcustoms clearance.
- Paragraph (a)provides forimposition ofprovisional measures upondetermination of
aprima faciecaseofdumping within 20daysfromreceipt ofpetition orinformation.
Article 7.3oftheAgreement provides thatprovisional measures shallnotbeapplied
sooner than60daysfrom thedateofinitiation oftheinvestigation andArticle 7.1
thereof provides thatsuchmeasures maybeapplied onlyiftheconditions setouttherein
arefulfilled.
- Paragraph(b)requiresallpartiesconcernedtosubmittheirrespectivememorandawithin
15daysfromnotice. Article 6.1.1 provides thatexporters orforeign producers shall
begiven aminimum period of30daysforreply toquestionnaires.
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- Sub-sectionDauthorizescollectionofdumpingdutiesondumpedarticlesandsub-section
Eprovides thatallimportation oflikearticles within 150daysimmediately preceding
thefiling oftheprotest arecovered bytheinvestigation. Article 10.6oftheAgreement
however provides thatsubject tocertain conditions, adefinitive anti-dumping dutymay
belevied onproducts which wereentered forconsumption notmore than90daysprior
tothedateofapplication ofprovisional measures. Article 10.8further provides that
noduties shallbelevied retroactively priortothedateofinitiation oftheinvestigation.
- Sub-section Eprovides thatthedumping dutyshallbeequal tothedifference between
theactual export priceandthenormal value actually existing atthetimeofimportation
asdetermined bytheCommission. Sub-section Lprovides thattheestablished dumping
dutyshallbesubject toadjustment based onwhichever higher oftheprevailing normal
values asdefined inparagraph b-1. Article 9.3oftheAgreement provides thatthe
amount oftheanti-dumping dutyshallnotexceed themargin ofdumping asestablished
under Article 2.Accordingly, theapplicable normal value fortheestablishment of
dumping margin should bethelatest onedetermined, notnecessarily thehigher one.
- Sub-section O.2defines thevarious elements of"cost ofproduction" including
administrative, selling andgeneral expenses, shipment -related expenses andprofit,
butartificially limits theirminimum leveltocertain percentages oftheproduction costs.
Article 2.2.1.1 oftheAgreement however requires costbenormally calculated on
thebasis ofactual records.
Furthermore, numerous provisions oftheAgreement areapparently notreflected inthe
Philippines legislation, orthecodification maynotbeadequate. Notable examples areasfollows:
- sufficient domestic sales(Article 2.2andFootnote 2)
- establishment ofcosts (Articles 2.2.1 and2.2.2)
- notion offaircomparison andrelevant provisions (Article 2.4)
- exchange rates(Article 2.4.1)
- comparison methodology (Article 2.4.2)
- cumulative assessment ofinjury (Article 3.3)
- threat ofmaterial injury (Article 3.7)
- standing ofcomplainant (Article 5.4)
- on-site verification (Article 6.6,6.7andAnnex I)
- sampling (Article 6.10)
- dutyforexporters andproducers notselected insampling (Article 9.4)
- application ofbestinformation available (Annex II)G/ADP/W/352
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(a) What further legislative stepswillPhilippines taketoensure theconformity ofitslaws,
regulations andadministrative procedures withtheprovisions oftheAgreement, in
accordance withArticle 18.4?
(b) HowwillPhilippines ensure compliance withtheAgreement before itslawsarebrought
intototalconformity withit?
(c) IfPhilippines iscontemplating adoption ofnewlegislation induecourse, whatisthe
intended purpose andcoverage? What isthelegislative timetable?
3. What judicial review procedures hasPhilippines putinplace inobservance ofitsobligations
under Article 13(Judicial Review) oftheAgreement?
4. What isPhilippines 'policy andlawfortheimplementation ofWTO Panel Reports?