RESTRICTED
WORLD TRADE G/ADP/W/77
G/SCM/W/86
ORGANIZATION 11October 1995
(95-3002)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE EUROPEAN COMMUNITIES1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 29September 1995, hasbeenreceived fromthePermanent
Mission ofAustralia.
_______________
Please findenclosed thewritten questions submitted byAustralia inview ofthelegislation
review tobecarried outinthenextmeeting oftheAnti-Dumping andCountervailing Measures
Committees.
Anti-Dumping Duty Legislation (G/ADP/N/1/EEC/1)
1. Article 2(10)(d) onlyprovides foraleveloftradeadjustment where thedifferent levels oftrade
existinthedomestic market oftheexporting country. WilltheECauthorities make dueallowance
fordifferences inlevels oftradethataffect price comparability butthatarenotpresent inthedomestic
market oftheexporting country, asrequired under Article 2.4oftheAnti-Dumping Agreement?
2. Article 3(5), inlisting thefactors setoutinArticle 3.4oftheAnti-Dumping Agreement on
thedetermination ofinjury, alsoincludes asanadditional factor "thefactthattheindustry isstillin
theprocess ofrecovering from theeffects ofpastdumping orsubsidization". What isthebasis for
using suchafactor intheexamination oftheimpact ofthedumped imports ontheCommunity industry?
3. Article 4(1), indefining "Community industry", says"amajor proportion, asdefined in
Article 5(4), ofthetotalCommunity production ofthose products". However Article 5(4)doesnot
explicitly define a"major proportion" butrather defines theproportion ofthe"Community industry"
supporting anapplication sufficient fortheinitiation ofaninvestigation. HowdoestheECdetermine
whatisthe"Community industry" bothfordetermining support fortheapplication aswellasforinjury
assessment?
4. Under Article 4(3)itisproposed thatduties belevied ontheECasawhole. Does the
constitutional lawoftheECpreclude duties being levied onlyonthose products consigned for
consumption intheareainquestion, asprovided forunder Article 4.2oftheAnti-Dumping Agreement?
(Note thattheEC'snotification totheSafeguards Committee (G/SG/N/1/EEC/1) provided forthe
application ofmeasures tooneormore regions oftheECwhere thatismore appropriate (Article 18)).
1G/ADP/N/1/EEC/1 andG/SCM/N/1/EEC/1.G/ADP/W/77
G/SCM/W/86
Page2
5. Thetestfornegligible volume inArticle 5(7)andreferenced inArticle 9(3)differs from the
definitionofnegligiblevolumessetoutinArticle5.8oftheAnti-DumpingAgreement(i.e.thethresholds
aredifferent; theyareofdomestic consumption andnotimports; andtheyappear tobeinrespect
ofallimports rather thandumped imports). Whether ornottheconditions intheRegulation would
beconsistent withtheAnti-Dumping Agreement would varyfromcasetocase. HowwilltheECensure
thatitsapproach isconsistent withtheAnti-Dumping Agreement?
6. Article 9(1)provides that"[w]here acomplaint iswithdrawn, proceedings maybeterminated
unless suchtermination would notbeintheCommunity interest". Inwhatcircumstances would an
investigation continue eveniftheCommunity industry making thecomplaint didnotwishittoproceed?
7. While setting outthresholds inArticles 5(7)and9(3)onvolumes, theRegulation appears not
tosayexplicitly thattheinvestigation onceinitiated willbeterminated ifitisdetermined thatthevolume
ofdumped imports islessthanthevolumes setoutinArticle 5(7). Willtherebeautomatic termination
inthatcase?
8. Article 9(3)setsoutconditions forimport volumes where "injury shallnormally beregarded
asnegligible". Would there beanycircumstances inwhich theinjury would notberegarded asbeing
negligible, despite thevolumes meeting theconditions ofArticle 5(7),other thanadetermination that
thepotential volume ofdumped imports isnotnegligible?
9. InArticle 9(3)whatdoesthephrase "they shallremain subject totheproceedings" imply?
10. Under Article 10(2) provisional duties canbedefinitively collected when thefactsasfinally
established show thatthereisdumping andinjury, ...,irrespective ofwhether adefinitive anti-dumping
dutyistobeimposed". Dothose factsalsohavetoshow causal link? Intheabsence ofadefinitive
anti-dumping duty(andhence thenon-application ofArticle 10(3)), doestheRegulation limitthelevel
ofdutydefinitively collected, except thatitcannot bemore thantheoriginal provisional duty?
11. Article 13setsoutcircumstances where anti-dumping duties maybeextended tocountries not
subject toinvestigation andtoproducts thatarenotlikeproducts tothose forwhich measures arein
force.Aretheseanti-dumpingdutiesinthesenseofGATTArticleVIandtheAnti-DumpingAgreement?
Ifso,whatjustification isthere forsuchextensions?
12. What special provisions forrules oforigin foranti-dumping purposes areenvisaged under
Article 14(3)?
13. Could theECexplain whatiscovered byitsArticle 20ondisclosure. Article 20(1) saysthat
disclosure regarding theimposition ofprovisional measures mayberequested, whereas Article 12.2
oftheAnti-Dumping Agreement requires thatthere bepublic notice (possibly including aseparate
report) disclosing suchdetails. Issomething more detailed envisaged bytheEC? With regard to
Article 20(2), Article 6.9oftheAnti-Dumping Agreement requires theECtomake disclosure toall
interested parties andnotjusttothose thatmake atimely request. Thefinalsentence ofArticle 20(4)
refers todifferent factsandconsiderations being "disclosed assoonaspossible". Would thisbebefore
thefinaldecision ordoesthissimply refertothepublic notice/report ofthefinaldetermination?
Countervailing Duty Legislation (G/SCM/N/1/EEC/1)
14. Under Article 4(1), "theamount ofcountervailable subsidies ...shallbecalculated interms
ofthebenefit conferred totherecipient". Does theRegulation allow forthepassthrough ofbenefits
from upstream subsidies?G/ADP/W/77
G/SCM/W/86
Page3
15. Article 4saysthatthe"[t]he amount ofcountervailable subsidy ...shallbecalculated ...found
toexistduring theinvestigation period forsubsidization". Howwould theECtreatthesituation where
thesubsidy ceased tobegranted aftertheinvestigation period butbefore thefinaldetermination with
either nocountervailable subsidy being granted oranewsubsidy programme being provided?
16. Dothenegligible volume criteria inArticle 11(4) apply toalldeveloping countries oronly
tothose thatareWTO Members assetoutinArticle 27.10(b) oftheSubsidies Agreement?
17. Article 11(6) saysthat"[t]he amount ofthecountervailing dutyshallnotexceed theamount
ofcountervailable subsidies from which theexporters havefound tobenefit". Does thisrequire an
assessment ofwhether theexporter inquestion hasactually benefited from thesubsidy?