RESTRICTED
WORLD TRADE G/ADP/W/376
G/SCM/W/386
ORGANIZATION 23April 1996
(96-1516)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS POSED BY
THE UNITED STATES TOSOUTH AFRICA1
CONCERNING THE LATTER 'SNOTIFICATION OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 16April 1996, hasbeenreceived from thePermanent
Mission oftheUnited States.
_______________
1. Could youplease explain howtheprovisions ofparagraph 12oftheBoard onTariffs andTrade
Amendments Act,No.39of1995 (theAct)[pages 6-7]concerning theBoard 'sability tosummons
witnesses relates toArticle 6.2oftheA-DAgreement which states "there shallbenoobligation on
anyparty toattend ameeting, andfailure todososhallnotbeprejudicial tothatparty'scase"?
2. Canthesanctions ofparagraph 19oftheAct[pages 9-10] beapplied toforeign firms thatfail
toprovide information?
3. Neither theAct,theCustoms andExcise Act("C&E Act)ortheBoard onTariffs andTrade
Guide (theGuide) appear torequire afinding thatafinancial contribution confers abenefit orisspecific
prior toimposing countervailing duties. Isthisanaccurate reading ofSouth Africa law? Ifsocould
youplease explain theapparent omission?
4. There doesnotappear tobeanyprovision under South African lawbywhich asubsidy, which
isotherwise countervailable could befound non-countervailable under Article 8oftheSCM Agreement.
Isthisaccurate?
5. Paragraph 23(b) oftheGuide [page 22]requires thatapetition provide, totheextent possible,
details ofthevolume andvalue ofdomestic production. However, theSouth African lawdoesnot
appear togrant theboard theauthority nottoinitiate aninvestigation ifthethresholds forindustry
support contained inArticle 5.4oftheA-DAgreement arenotmet. Could youplease explain?
6. What provision hasbeenmade forconducting reviews provided forunder Article 9.5ofthe
A-DAgreement (thesocalled "new shipper reviews")?
7. Concerning paragraph 40oftheguide [page 25]whatisearliest datefromthefiling ofapetition
thattheboard canimpose provisional duties?
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8. Whatprovisionhasbeenmadeforterminationofanti-dumpingorcountervailingdutiesorreviews
ofthese duties asprovided forunder Article 11.3oftheA-DAgreement and21.3oftheSCM
Agreement?
9. Paragraph 54oftheGuide [page 27]appears toallow Undertakings prior totheimposition
ofapreliminary duty. Isthisaccurate andifsohowisitconsistent withArticle 8.2oftheA-D
Agreement?
10. There doesnotappear tobeaprovision under South African lawforcompletion ofthe
investigation within oneyearorwithin 18months inexceptional circumstances asprovided forin
Article 5.10oftheA-DAgreement. Could youplease explain?
11. TheSouth African lawdoesnotappear tohaveincluded anyoftheprocedural safeguards
provided under Annex IIoftheA-DAgreement concerning theuseoffactsavailable under Article 6.8
oftheA-DAgreement. Under whatcircumstances willfactsavailable beresorted to?
12. HowdoesSouth African lawimplement therequirement ofArticle 3.2oftheA-DAgreement
andArticle 15.2oftheSCM Agreement requiring theinvestigating authorities toconsider whether
there hasbeenasignificant increase indumped orsubsidized imports?
13. HowdoesSouth African lawimplement theprovisions ofArticle 3.2oftheA-DAgreement
andArticle 15.2oftheSCM Agreement requiring theinvestigating authorities toconsider whether
there hasbeensignificant price undercutting bytheimports orwhether theeffects ofsuchimports is
otherwise todepress prices toasignificant degree orprevent price increases toasignificant degree?
14. Article 3.4oftheA-DAgreement andArticle 15.4oftheSCM Agreement require anevaluation
ofallrelevant economic factors intheexamination oftheimpact ofthedumped orsubsidized imports
onthedomestic industry. What factors dotheSouth African authorities consider inassessing impact?
Arethefactors setforthinparagraph 6oftheGuide tobeconsidered inassessing theimpact ofdumped
orsubsidized imports?
15. Paragraph 11(c) oftheGuide states thatinassessing causation, consideration istobegiven
to"factors suchaspolitical influences; thestateoftheeconomy; labour matters; boycotts; product
quality andrange; delivery periods; technology employed; theutilisation ofproduction factors;
andthepolicies oftheindustry concerning production, marketing andfinance." Howarethese factors
tobetaken intoaccount under South African law? Specifically, howare"political influences" and
the"state oftheeconomy" relevant tocausation ofinjury?
16. Paragraph 12oftheGuide states thattheBoard mayintroduce anti-dumping orcountervailing
dutyactions pursuant to"internationally accepted principles ...."Towhatinternationally accepted
principles isthisprovision referring?
17. There isnoprovision addressing theissue ofthecumulative assessment oftheeffects ofthe
imports from more thanonecountry asprovided forinArticle 3.3oftheA-DAgreement and
Article 15.3oftheSCM Agreement. DoesSouth African lawcontemplate cumulation, andifso,under
whatcircumstances?
18. HowdoesSouth African lawimplement therequirement ofArticle 3.6oftheA-DAgreement
andArticle 15.6oftheSCM Agreement requiring thatimports beassessed inrelation tothedomestic
production ofthelikeproduct or,ifnotpossible, byexamination ofthenarrowest group orrange of
products?G/ADP/W/376
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19. Article 3.7oftheA-DAgreement andArticle 15.7oftheSCM Agreement listspecific factors
thattheinvestigating authorities should consider when analysing threat ofmaterial injury. Under
South African lawdotheauthorities takethesefactors intoaccount? Paragraph 25oftheGuide requires
thatparties provide certain information regarding threat ofmaterial injury, butitcovers onlyoneof
thefactors considered bytheA-DandSCM Agreements (relating torateofincrease ofimports).
Paragraph 25(c) oftheGuide alsorequires thatthepetitioner provide information regarding thestate
oftherelevant industry intheforeign country forpurposes ofthreat ofmaterial injury. Howissuch
information taken intoaccount?
20. South African lawdoesnotappear toimplement therequirement intheSCM Agreement that
thenature ofthesubsidies beconsidered forpurposes ofmaking threat determinations. Isthisconsistent
withArticle 15.7oftheSCM Agreement?
21. Theterm"related" inparagraph 19oftheGuide isnotdefined. Isthistermintended tohave
thesame meaning asinArticle 4(note 11)oftheA-DAgreement andArticle 16(note 48)oftheSCM
Agreement?
22. Does South Africa engage inaregional industry analysis ofthedomestic industry assetforth
inArticle 4.1(ii) and4.2oftheA-DAgreement and16.2oftheSCM Agreement? Ifso,please indicate
howSouth Africa conducts aregional industry analysis.
23. Under whatcircumstances willtheSouth African authorities initiate aninvestigation thatis
notbrought onbehalf ofadomestic industry?
24. Paragraph 30oftheGuide states thatthegovernments ofthecountries concerned willbenotified
oftheBoard ’sdecision toinitiate aninvestigation atthesame timethenotice ofinitiation ispublished
intheGovernment Gazette. Thisappears toconflict withArticle 5.5oftheA-DAgreement thatrequires
authorities tonotify thegovernment oftheexporting Member before proceeding toinitiate ananti-
dumping investigation. Please indicate howthisrequirement willbemet.
25. South African lawdoesnotappear toimplement therequirements ofArticle 5.8oftheA-D
Agreement andArticle 11.9oftheSCM Agreement concerning prompt termination ofinvestigations
incircumstanceswhenthereisinsufficientevidenceofdumping/subsidizationorinjury;whenthemargin
ofdumping/subsidization isdeminimis ;orwhen thevolume ofdumped/subsidized imports, orthe
injury, isnegligible. Please indicate howthese requirements willbeaddressed.
26. South African lawdoesnotappear torequire thatinvestigations beconcluded within oneyear,
andnomore than18months inspecial circumstances, pursuant toArticle 5.10oftheA-DAgreement
andArticle 11.11 oftheSCM Agreement. Please indicate what thetimeframe forcompletion of
investigations isunder South African law.
27. Section 31oftheGuide doesnotprovide forextensions forexporters orforeign producers
toreplytoanti-dumpingandcountervailingdutyquestionnairesasdoArticle6.1.1oftheA-DAgreement
andArticle 12.1.1 oftheSCM Agreement. Areextensions evergranted under South African law?
Ifso,under whatcircumstances?
28. How doesSouth African lawimplement theprovisions regarding oralpresentations thatare
required byArticles 6.2and6.3oftheA-DAgreement andArticles 12.2and12.3oftheSCM
Agreement?G/ADP/W/376
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29. Section 4(a)(i) oftheBoard onTariffs andTrade Actappears toallow theBoard onTariffs
andTrade toinvestigate dumping orsubsidization beyond theRepublic ofSouth Africa tothecommon
customs areaoftheSouth African Customs Union. Insuchcases, would producers intheentire area
ofthecommon customs areaoftheSouth African Customs Union betaken tobethedomestic industry
ascontemplated inArticle 4.3oftheA-DAgreement?
30. Section 4(2)oftheBoard onTariffs andTrade Actstates thattheMinister ofTrade andIndustry
mayaccept orreject areport andrecommendations made bytheBoard onTariffs andTrade regarding
ananti-dumping orsubsidization investigation. What arethecriteria forrejection ofanegative
recommendation andreport? Would theMinister provide awritten report setting forth thereasons
forrejecting theBoard 'srecommendation? Ifanegative recommendation oftheBoard isrejected by
theMinister, onwhatbasis would ananti-dumping orcountervailing dutyorder beissued?
31. Issection 14oftheBoard onTariffs andTrade Actlimited totheterritory ofSouth Africa?
32. Under South African lawwilltheresults ofinvestigations carried outinother Members '
territories bemade available tothefirms towhich theypertain asrequired byArticle 6.7oftheA-D
Agreement andArticle 12.6oftheSCM Agreement?
33. Article 6.9oftheA-DAgreement andArticle 12.8oftheSCM Agreement statethatthe
authorities shallinform interested parties of"theessential factsunder consideration" before afinal
determination ismade andprovide sufficient timefortheparties todefend theirinterests. Howwill
thisrequirement beaddressed under South African law?
34. HowdoesSouth African lawimplement therequirement ofArticle 6.13oftheA-DAgreement
andArticle 12.11 oftheSCM Agreement, which require theauthorities totakeintoaccount parties ’
difficulties insupplying theinformation requested?
35. Where doesSouth African lawaddress Article 7.3oftheA-DAgreement andArticle 17.3
oftheSCM Agreement which statethatprovisional measures shallnotbeapplied sooner than60days
from thedateofinitiation oftheinvestigation?
36. Article 7.4oftheA-DAgreement andArticle 17.4oftheSCM Agreement statethatprovisional
measures shallnotexceed fourmonths, unless arequest byanexporter ismade, inwhich casesuch
measures shallnotexceed sixmonths. HowisSouth African lawconsistent withtheseprovisions given
thatparagraph 44oftheGuide provides forlonger periods?
37. Please explain howtherequirements regarding price undertakings setforth inArticles 8.2,
8.4and8.5oftheA-DAgreement andArticles 18.2, 18.4and18.5oftheSCM Agreement willbe
fulfilled under South African law.
38. Please explain howtherequirements limiting retroactivity setforthinArticles 10.1, 10.2, 10.4,
10.5and10.8oftheA-DAgreement andArticles 20.1, 20.2, 20.4, and20.5oftheSCM Agreement
willbefulfilled under South African law.
39. South African lawdoesnotappear toimplement therequirements ofArticle 11oftheA-D
Agreement andArticle 21oftheSCM Agreement which, among other things, require afinding that
theexpiry ofadutywould belikely toleadtoacontinuation orrecurrence ofdumping orsubsidization
andinjury tomaintain anti-dumping andcountervailing dutylawspastfiveyears. Please explain how
these matters areaddressed under South African law.G/ADP/W/376
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40. Pursuant toArticle 12oftheA-DAgreement andArticle 22oftheSCM Agreement, will
interested parties beprovided withthefinalreport ofallfact-finding investigations; decisions with
respect toprovisional measures; decisions withrespect topriceundertakings; anddecisions withrespect
toconclusion orsuspension ofinvestigations? Willpublic notice andexplanation begiven asto
termination ofundertakings ordefinitive anti-dumping duties asrequired byArticle 12.2oftheA-D
Agreement andArticle 22.2oftheSCM Agreement?
41. Where doesSouth African lawaddress therequirements ofArticle 27oftheSCM Agreement
which provides fortermination ofaninvestigation ofproducts originating inadeveloping country in
specific circumstances?
42. Where doesSouth African lawprovide forjudicial, arbitral, oradministrative review asrequired
byArticle 13oftheA-DAgreement andArticle 23oftheSCM Agreement?
43. HowdoesSouth African lawimplement therequirements ofArticle 10.4oftheA-DAgreement
andArticle 20.4oftheSCM Agreement which require therefund ofprovisional duties intheevent
ofafinding ofthreat ofmaterial injury (except under thecircumstances specified inArticle 10.2of
theA-DAgreement andArticle 20.2oftheSCM Agreement)?
44. Sections56(3)and56A(3)oftheCustomsandExciseActNo.91of1964statethattheprovisions
ofsection 48(6) shallapply withrespect tosections 56and56A(concerning theamendment, withdrawal
orreduction ofanti-dumping andcountervailing duties). Please provide thetextofsection 48(6) as
itwasnotsubmittedwiththeotherrelevantexcerptsoftheSouthAfricananti-dumpingandcountervailing
dutylaw.