RESTRICTED
WORLD TRADE G/ADP/W/121
G/SCM/W/130
ORGANIZATION 19October 1995
(95-3200)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE GOVERNMENT OFNEW ZEALAND1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENT
Thefollowing communication, dated 10October 1995, hasbeenreceived from theOffice of
theUnited States Trade Representative.
_______________
ANTI-DUMPING METHODOLOGY
Price Averaging NewZealand doesnotappear tohaveaprovision addressing price averaging.
1. Onwhat basis willprice comparisons bemade (e.g., transaction totransaction, average to
average)?
CV-Profit Section 5(2)(d)(ii)(B) (G/ADP/N/1/NZL/2, Page6)provides fortheinclusion ofprofit
inthecalculation ofconstructed value ("CV"). Thisprovision states thatprofit istobedetermined
bytherateofprofit "normally realized onsales ofgoods [...]ofthesame general category inthe
domestic market..." Article 2.2.2 oftheA-DAgreement requires thatprofit bebased onactual profit
datapertaining toproduction andsales ofthelikeproduct bytheexporter orproducer under
investigation. Reliance onprofit forthegeneral category ofmerchandise isanalternative onlyavailable
when actual profit forthelikeproduct cannot beused.
2. How willNewZealand apply section 5(2)(d)(ii)(B) (G/ADP/N/1/NZL/2, Page6)requiring
profit based onthegeneral category ofmerchandise tobeconsistent withtherequirement of
Article 2.2.2 thatprofit bebased onactual profit forthelikeproduct ifpossible?
CV-Transportation Expenses Section 5(2)(d) (G/ADP/N/1/NZL/2) provides thatconstructed value
includes delivery charges incurred onthesale. Section 4(G/ADP/N/1/NZL/2, Page 7),however,
states thatexport priceistoexclude expenses resulting fromtheexportation ofthegoods (presumably
including shipping charges). Article 2.4oftheA-DAgreement requires acomparison between export
price andnormal value thatisnormally tobemade attheex-factory level.
3. How willNew Zealand ensure thatthecomparison between export prices (exclusive of
transportation expenses) andnormal value areatacommon point ofdelivery ifconstructed
value isinclusive ofdelivery charges?
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SUBSIDIES AND COUNTERVAILING MEASURES
Definition ofSubsidy TheActdefines theterm"subsidy" insection 3.(G/ADP/N/1/NZL/2, Page3).
Thisdefinition includes "anyfinancial orother commercial benefit thathasaccrued orwillaccrue,
directly orindirectly, topersons engaged intheproduction, manufacture, growth, processing, purchase,
distribution, transportation, sale,export, orimport ofgoods, asaresult ofanyscheme, programme,
practice, orthing done, provided, orimplemented byaforeign government ..."
4. Article 1.1(a)(1) oftheSCM Agreement requires a"financial contribution" byagovernment
forafinding ofsubsidization. Isa"financial contribution" anecessary prerequisite forafinding
ofsubsidization under theAct? Ifso,howwould theexistence ofafinancial contribution be
determined?
INVESTIGATION PROCEDURES
Initiation /Industry Support Section 10(3) (G/ADP/N/1/NZL/2, Page12)states thatthepercentage
ofsupport ismeasured based on"goods produced fordomestic consumption ."Articles 5.4ofthe
A-DAgreement and11.4oftheSCM Agreement require thatindustry support bebased on"collective
output" without anylimitation onoutput destined for"domestic consumption".
5. CouldyoupleaseexplainhowSection10(3)isconsistentwithArticles5.4oftheA-DAgreement
and11.4oftheSCM Agreement given theabove mentioned differences?
6. Under section 10(3), mayaproducer bepartially counted inmeasuring industry support for
thatportion ofitsproduction soldfordomestic consumption versus itstotalproduction ofthe
likegoods? How would suchadetermination ofindustry support bemade?
Treatment ofProprietary Information Sections 10(6), (7)and(8)govern thetreatment ofproprietary
information. (G/ADP/N/1/NZL/2, Page 12-13) Section 10(6)(b) provides thatallinterested parties
shallbegiven areasonable opportunity tohaveaccess topublic information, unless thatinformation
maybewithheld under theOfficial Information Actof1982.
7. Does theOfficial Information Actdefine proprietary information?
Timetable forInvestigation Section 10A(G/ADP/N/1/NZL/2, Page13)provides that"written advice
oftheessential factsandconclusions likely toformthebasisforanyfinaldetermination" willbegiven
totheexporter/producers, thegovernment oftheaffected country, andtoother interested parties within
150daysofinitiation.
8. Does the"written advice" constitute thepreliminary determination?
Section 10(6) (G/ADP/N/1/NZL/2, Page12)provides thatafterinitiation, NewZealand willprovide
respondents areasonable opportunity topresent evidence relevant totheinvestigation.
9. HowwillNewZealandensurethatthe"reasonableopportunity"topresentinformationinsection
10(6) willprovide respondents atleast37daystorespond toanyquestionnaires inaccordance
withArticles 6.1.1 oftheA-DAgreement and12.1.1 oftheSCM Agreement?
Provisional Measures Section 16(1) (G/ADP/N/1/NZL/2, Page18)provides thatprovisional measures
maybeapplied after 60daysfrom thedateofinitiation oftheinvestigation inaccordance with
Articles 7.3oftheA-DAgreement and17.3oftheSCM Agreement.G/ADP/W/121
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10. Section 16(2) (G/ADP/N/1/NZL/2, Page18)provides that,notwithstanding section 16(1), the
Minister maybynotice giveaprovisional direction thatpayment ofdutyinrespect ofthegoods
subject toinvestigation shallbesecured inaccordance withPartIXoftheCustoms Act1966.
Could youplease explain thepractical effect ofthisprovision? Could youplease explain the
rationale under theA-DandSCM Agreements fortaking ameasure prior totheexpiry ofthe
60dayperiod afterinitiation?
11. Ifprovisional measures areimposed pursuant tosection 16(2) anddonotexpire untilthefinal
determinationpursuanttosection16(3),thesemeasuresmaybeineffectformorethan4months.
Isthisinterpretation correct? Ifso,howisthisisconsistent withArticles 7.4oftheA-D
Agreement and17.4oftheSCM Agreement?
ADMINISTRATIVE REVIEWS
Section 14(10) (G/ADP/N/1/NZL/2, Page16)provides thatwhere areassessment results inalower
duty, theMinister mayrequire arefund ofthedifference between thelower dutyandthenewduty.
12. Article 9.3.2 oftheA-DAgreement requires thatwhen theamount ofanA-Ddutyisassessed
onaprospective basis, provision mustbemade forrefund uponrequest ofdutypaidinexcess
oftheamount ofdumping. Section 14(10) however appears tomake therefund ofoverpayment
discretionary. Isthisinterpretation correct?
Section 4(1)(b)(i) (G/ADP/N/1/NZL/2, Page5)callsfortheexport pricetobereduced by"theamount
ofduties andtaxes imposed under anyAct"when thepurchase ofgoods bytheimporter wasnotat
arm'slength.
13. Areanti-dumping orcountervailing duties considered duties imposed under theAct?
NewShippersArticle14(8)(G/ADP.N/1/NZL/2,Page16)statesthattheagencyshall,"whererequested
todosobyaninterested party thatsubmits positive evidence justifying theneedforareview", initiate
thereview andcomplete thatreview within 180daysofinitiation.
14. Article 9.5oftheA-DAgreement provides fortheconduct ofnewshipper reviews forexporters
orproducers whohavenotexported themerchandise during theperiod ofinvestigation and
whoarenotrelated toanyexporter orproducer whoisalready subject toanti-dumping duties.
Issection 14(8) intended tobethenewshipper provision? Ifnot,willanewshipper provision
beadded totheAct?
15. Under Section 14(8) willduties belevied during theconduct ofthereview?
16. Section 14(8) states thatareview shallbecarried outforaninterested party that"submits
positive evidence justifying theneedforareview". Ifsection 14(8) isanewshippers provision,
howistherequirement ofashowing ofpositive evidence consistent withArticle 9.5ofthe
A-DAgreement which doesnotmake reference tosuchevidence?
Revocations Section 14(7) (G/ADP/N/1/NZL/2, Page 16)empowers theMinister toterminate, in
whole orinpart,anyanti-dumping orcountervailing dutyimposed pursuant toafinaldetermination,G/ADP/W/121
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butdoesnotprovide forhowthedecision toterminate willbemade. Thelocation ofthisprovision
withthose relating toreview suggests thatthiscanbeachieved through review.2
17. What arethemeans of,andstandards for,revocation ofA-D/CVD duties andundertakings,
outside ofthesunset process?
INJURY
18. Section 8(2)(d) oftheAct(G/ADP/N/1/NZL/2, Page9)provides alistoftherelevant economic
factors tobeconsidered. Isthislistexhaustive?
19. Isthere arequirement inNewZealand lawsimilar tothatcontained inArticle 3.7oftheA-D
Agreement andArticle 15.7oftheSCM Agreement, specifying thatadetermination ofthreat
ofmaterial injury be"based onfacts andnotmerely onallegation, conjecture orremote
possibility"?
20. Isthere aprovision inNewZealand lawsimilar tothatcontained inArticle 3.6oftheA-D
Agreement andArticle 15.6oftheSCM Agreement regarding theexamination ofproduction
dataonthebasis oflikeproduct orthenarrowest group orrange ofproducts?
INDEPENDENT REVIEW TheActcontains noexplicit provision forindependent review offinal
administrative A-DorCVD actions.
21. Isindependent review available inNewZealand forA-DandCVD determinations? Ifso,
under whatstatute? Hasthisstatute beennotified totheWTO?
22. Arethere provisions under NewZealand lawfortheimplementation ofWTO panel reports?
2Section 11oftheActprovides guidance ontermination ofinvestigations, including implementation
ofdeminimis levels. TheNewZealand law,however, doesnotspecify whether these provisions also
apply toreviews.