RESTRICTED
WORLD TRADE G/ADP/W/311
G/SCM/W/319
ORGANIZATION 1April 1996
(96-1155)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYHONG KONG1
CONCERNING THE NOTIFICATION OFLAWS AND
REGULATIONS OFICELAND2
Thefollowing communication dated 21March 1996, hasbeenreceived from thePermanent
Mission ofIceland.
_______________
1. Iceland ’snotification contains acopyofArticles 115-119 ofCustoms LawNo.55/1987 and
Regulation No.351/1994. Iceland further states thatthelegislation isunder review inlightofthe
relevant provisions oftheWTO Agreements. Apparently, someprovisions inIceland ´slegislation may
beatoddswiththeWTO A-DAgreement andnumerous provisions oftheWTO A-DAgreement are
notfeatured inIceland ´slegislation.
Questions:
(a) What isthelegalstatus oftheWTO A-DAgreement inIceland? Does ithavetheforce
oflaw? Ifaprovision ofthedomestic legislation isinconflict withtheAgreement,
which willtakeprecedence?
(b) AretheA-Dofficials ofIceland required, legally orotherwise, toabide bytheA-D
Agreement intheconduct ofA-Dproceedings, ortoconsult theA-DAgreement, for
example ontheinterpretation ofdomestic legislation?
(c) What isthetimetable ofthereview andtheimplementation ofthenewlegislation?
(d) HowwillIceland ensure compliance withtheprovisions oftheWTO A-DAgreement
before itslawsarebrought intototalconformity withtheWTO A-DAgreement?
Reply
IcelandadherestothedualisticsystemintheapplicationofinternationallawtoIcelandicdomestic
law.Inprinciple, Actsarerequired togiveinternational law,including treaty obligations, direct legal
effect within theIcelandic legalsystem. Itisawellestablished principle incourt cases, however, that
domesticlegislationmustbeinterpretedinaccordancewithinternationallawandinternationalobligations
which Iceland hasundertaken. Thisprinciple isfurther strengthened intheRegulation No.351/1994
1G/ADP/W/189-G/SCM/W/196.
2G/ADP/N/1/ISL/1-G/SCM/N/1/ISL/1G/ADP/W/311
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onA-DandCVD measures, Article 1paragraph 2,which specifically states thatinimplementing the
Regulation, consideration mustbegiven toprovisions ofinternational agreements towhich Iceland
isaparty.
Thetraditional methodology ofdrafting legislation issimilar tothatoftheEuropean continental
method. Theprinciples provided bythelegislation arenormally stated inbroad terms, namely general
principles andwiththeexceptions stipulated. Inthisfashion Iceland normally transforms theprinciples
ofinternational agreements intoitslegislation. Consequently every provision ofinternational agreements
neednotbestated inthedomestic legislation.
TheWTOAgreementshavenotintheirentiretybeenregardedasrequiringdirecttransformation
intoIcelandic law. TheAgreements have, however, beenthebasis foramendments toanddrafting
ofrelevant domestic legislation.
Itisforeseen thatreview ofthelegislation willberealised bythemiddle ofthisyear. The
present domestic A-DandSCM legislation predates theentry intoforce oftheWTO A-DandSCM
Agreements. Since itismore limited thantheAgreements -andinthelightoftheabove -itleaves
significant scope forinterpretation andadministrative proceedings inawaywhich should avoid conflict
withtherelevant disciplines oftheAgreements.
Question 2: Whatjudicial review procedures hasIceland putinplace inobservance ofitsobligations
under Article 13oftheWTO A-DAgreement?
Reply
Alladministrative actscanbesubmitted tonational courts forjudicial review according to
Article 60oftheIcelandic Constitution.
Question 3: What isIceland spolicy andlawfortheimplementation ofWTO Panel Reports?
Reply
There isnodomestic legislation regarding theimplementation ofrecommendations flowing
from Panel reports. IfIceland wasaparty toadispute which wasresolved inaPanel, itwould be
uptotheGovernment howtodealwiththesituation. Thereaction would ofcourse bedependent on
thenature ofthecase, i.a.whether itwould callforalegislative amendment. APanel report would,
however, beconsidered anauthoritative interpretation ofinternational obligations towhich Iceland
wasbound bytheforceofInternational lawandtherefore treated assuch. Inother words theauthorities
would endeavour tointerpret theaffected legislation totheextent possible inaccordance withthe
recommendations orconclusions ofaPanel. Iftheconclusions would callfaranamendment orrepeal
ofexisting legislation, anActofParliament would benecessary.
4. Article 39ofRegulation No.351/1994 provides thatA-Dduties maybeimposed onproducts
thatareintroduced intothecommerce ofIceland afterhaving beenassembled orproduced inIceland
provided thatcertain conditions aremet.
Questions:
(a) Arethese “A-Dduties ”under Article 39customs duties orinternal taxes?G/ADP/W/311
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(b) Does itrequire full-fledged investigations pursuant toprocedures prescribed inthe
WTOA-DAgreement onthepartsusedintheassembly inIceland andproof ofdumping,
injury andcausal linkbefore anyanti-dumping duties canbeimposed? Howwould
Iceland reconcile thisArticle withitsobligations under theWTO A-DAgreement?
(c) DoesIceland anticipate amendment orrepeal ofthisArticle inthelightofitsobligations
under theWTO A-DAgreement?
Reply
ItseemsclearthatthereisnothingintheWTOAgreementsthatexplicitlycontradictsorprohibits
theterms ofArticle 39oftheRegulation. Thisisanopenquestion stillpending intheWTO andwaiting
foraresolution. Once asolution isfound Iceland willabide byit.Anti-circumvention would require
fullfledged investigation.
Intheinternal review process, concerns havebeenraised whether the“A-Dduties ”under
Article 39,areineffect aninternal tax.Thiswillbetaken intoaccount during therevision ofthe
domestic legislation.