RESTRICTED
WORLD TRADE G/ADP/Q1/EEC/2
G/SCM/Q1/EEC/2
ORGANIZATION 21March 1997
(97-1178)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from JAPAN
totheEUROPEAN COMMUNITY1
Thefollowing communication, dated 14March 1997, hasbeenreceived fromthePermanent
Mission ofJapan.
_______________
Questions ontheECamended Regulation ofAnti-Dumping
On2December 1996, theECadopted Council Regulation No.2331/96 toamend paragraph 10
ofArticle 2oftheECRegulation ofAnti-Dumping. Itisunderstood thatthisamendment wasdone
inaccordance withthereport oftheJapan-EC Audio Cassette Panel inApril 1995.
Thereport concluded thattheEChadfailed tomake dueallowances forindirect selling expenses
andprofits initsprice comparison andrecommended theECtobring relevant provisions oftheEC
Regulation intoconformity withtheAnti-Dumping Agreement.
Concerning thenewRegulation, Japan requests theECtoanswer thefollowing questions.
1. HastheECalready informed theCommittee ofitschange ofregulations pursuant toArticle 18.5
oftheAgreement onImplementation ofArticle 6oftheGeneral Agreement onTariffs andTrade 1994?
2. UnderitsnewRegulation,howwilltheECdealwiththesituationwhereanexportersellsthrough
subsidiaries initshome market andintheEC? Inparticular, inmaking allowances, what account
would betaken oftheindirect selling costs ofthesubsidiaries?
3. Would theposition beanydifferent ifthehome saleswere notmade through asubsidiary?
4. Does thesituation described fallwithin thescope ofthenotion of"different level oftrade"
asmentioned inthenewArticle 2.10(d)? Ifso,would itfallunder sub-paragraph (d)(i) orsub-
paragraph (d)(ii)?
1G/ADP/N/1/EEC/2 &Corr.1 +Suppl.1, G/SCM/N/1/EEC/1.
./.G/ADP/Q1/EEC/2
G/SCM/Q1/EEC/2
Page2
5. CantheECgiveexamples of"differences infunctions" asusedinsub-paragraph (d)(i)?
6. Cantherequirements ofsub-paragraphs (d)(i) besatisfied ifthere aredifferences infunctions
orprices, orcantheybesatisfied onlywhen there aredifferences inbothofthese?
7. CantheECgiveanyexamples ofthesituations where adjustments would bemade under
Article 2.10(k)?
8. Doessub-paragraph (k)haveanyrelevance tothesituation described inthefirsttwoquestions?
9. Although sub-paragraph (k)refers broadly to"differences inother factors", thecorresponding
recital speaks onlyof"differences inselling expenses". IstheRegulation tobeinterpreted inthislimited
way? Aredifferences inprofit levels considered irrelevant?