RESTRICTED
WORLD TRADE G/ADP/W/228
G/SCM/W/238
ORGANIZATION 1December 1995
(95-3908)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFCOLOMBIA1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 28November 1995, hasbeenreceived fromthePermanent
Mission ofHong Kong.
_______________
Domestic Legal Status oftheA-DAgreement
1. Colombia 'snotification contains Decree 299of10February 1995.
Questions:
(a) What isthelegalstatus oftheWTO A-DAgreement inColombia? Does ithavethe
force oflaw? Ifaprovision ofthedomestic legislation isinconflict withthe
Agreement, which willtakeprecedence?
(b) AreColombian A-Dofficials required, legally orotherwise, toabide bytheA-D
Agreement intheconduct ofA-Dproceedings, ortoconsult theA-DAgreement, for
example ontheinterpretation ofdomestic legislation?
Judicial Review Procedures
2. Question: What judicial review procedures hasColombia putinplace inobservance of
itsobligations under Article 13oftheWTO A-DAgreement?
Implementation ofPanel Reports
3. Question: What isColombia 'spolicy andlawfortheimplementation ofWTO Panel
Reports?
Anti-circumvention
4. Article 24oftheDecree provides thatthescope ofadefinitive dutyinforceonimported product
mayextend topartsandcomponents forassembly inColombia onestablishment ofcertain conditions.
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TheWTO A-DAgreement doesnotcontain anyanti-circumvention provisions. TheMinisterial
Conference atMarrakesh adopted adecision torefertheproblem ofcircumvention ofA-Dmeasures
totheCommittee onAnti-Dumping Practices established under theWTO A-DAgreement forresolution.
Question:
(a) Under Article 24,doesitrequire full-fledged investigations onaproduct pursuant to
procedures prescribed intheWTO A-DAgreement andproof ofdumping, injury and
causal linkbefore anyanti-dumping duties canbeimposed onthepartsandcomponents
inquestion? Would theColombian authorities explain whyimported parts and
components forassembly areautomatically included within thescope ofanti-dumping
duties inforce? Howwould Colombia reconcile thisArticle withitsobligations under
theWTO A-DAgreement?
(b) Does Colombia anticipate amendment orrepeal ofthisArticle inthelight ofits
obligations under theWTO A-DAgreement?
Final Determination ofLiability andRefund
5. Article 9.3oftheWTO A-DAgreement provides thattheanti-dumping dutyshallnotexceed
themargin ofdumping. Articles 9.3.1-9.3.3 setouttheprocedures andrequirements forrefunds,
withseparate considerations given toassessment ofanti-dumping duties onretrospective andprospective
basis.
Itisnotapparent thatthenotified legislation hasprovided forprocedures andrequirements
forfinaldetermination ofliability andrefund when themargin ofdumping haschanged.
Question: IstheColombian assessment ofanti-dumping duties carried outonaretrospective or
prospective basis? What aretheprocedures andrequirements forfinaldetermination
ofliability andrefund when themargin ofdumping haschanged? Howwould Colombia
ensure compliance ofitsobligations under Article 9.3oftheWTO A-DAgreement?
Cumulation ofImports forAssessment
6. Article 16provides thatimports from more thantwocountries subject toinvestigation may
becumulated forthepurpose ofassessing thevolume andimpact onthedomestic industry.
Subject tocertain conditions, Article 3.3oftheWTO A-DAgreement permits cumulation of
imports from more thanonecountry inassessing injury ifsuchimports aresimultaneously subject
toanti-dumping investigations.
Question:
(a) Could imports from onlytwocountries becumulated?
(b) Could imports fromcountries subject toA-Dinvestigation becumulated withimports
fromcountries subject tocountervailing investigation forthepurpose ofassessing the
volume andimpact onthedomestic industry?G/ADP/W/228
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Comparison Methodology
7. Article 10oftheDecree provides thatnormally thecomparison between thenormal value and
theexport prices maybemade onthebasis ofweighted averages. If,during thereview period, the
normal value andtheexport prices varyorexceptional circumstances arise, themargin ofdumping
maybecalculated bytheweighted average normal value andthevarious export prices orona
transaction-to-transaction basis.
Article 2.4.2 oftheWTO A-DAgreement provides that,forthedetermination ofdumping
margins, aweighted average normal value maybecompared toprices ofindividual export transactions
onlyifapattern ofexport prices which differ significantly among different purchasers, regions ortime
periods isfound and"ifanexplanation isprovided whysuchdifferences cannot betaken intoaccount
appropriately bytheuseofaweighted average-to-weighted average ortransaction-to-transaction
comparison".
Question: Would Colombia explain howArticle 10oftheDecree would implement itsobligations
under Article 2.4.2 oftheAgreement toresort toweighted-average-to-individual
transaction comparison onlyinnarrow circumstances defined therein? How would
Colombia discharge itsobligation under Article 2.4.2 oftheWTO A-DAgreement
which requires theinvestigating authorities toprovide anexplanation fordeparture
from thespecified methods ofcomparison?
Sales below Cost
8. Article 5oftheDecree provides thatsalesmade atalossorbelow costshallbeignored in
establishing thenormal value intheordinary course oftrade ifsuchsales havebeenmade within a
period between sixmonths andoneyearandinmore than20percentofallsales.
Article 2.2.1 oftheAgreement provides thatprices which arebelow perunitcostsatthetime
ofsalebutabove weighted average perunitcosts fortheperiod ofinvestigation shallbeconsidered
toprovide forrecovery ofcostswithin areasonable period oftimeandtherefore cannot bedisregarded
indetermining normal value.
Question: Howwould Colombia interpret salesmade atalossorbelow costunder Article 5of
theDecree, inthelightofitsobligations under Article 2.2.1 oftheAgreement? How
wouldColombiaensuresatisfactoryimplementationofitsobligationsunderArticle2.2.1
apparently without codifying theprovision tothefullest extent?
Voluntary Price Undertakings
9. Itappears thattheDecree doesnotprovide foracceptance ofsatisfactory voluntary undertakings
inlieuofimposition ofprovisional measures orA-Dduties envisaged inArticle 8oftheAgreement.
Question: Does Colombia accept satisfactory voluntary undertakings inlieuofimposition of
provisional measures orA-Dduties envisaged inArticle 8oftheAgreement? Ifso,
whatisthedomestic legalbasis?
Keyissues intheWTO A-DAgreement found silent intheColombian A-Dlegislation
10. TheWTO A-DAgreement contains many improvements overtheTokyo Round A-DCode.
Weexpect WTO members would unequivocally reflect theseimprovements intheirnational legislation.G/ADP/W/228
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Although mostofthem arereflected inColombian A-Dlegislation, specific statutory provisions for
some ofthem appears nottobefound ortheprovisions maynotbeadequate. Some examples are
asfollows :
- start-up costs (Art. 2.2.1)
- costs based onactual records (Art2.2.1.1)
- factors fordetermination ofmaterial injury (Art.3.7)
- notification tothegovernment oftheexporting country concerned (Art. 5.5)
- sampling techniques (Art. 6.10)
- newcomer review (Art. 9.5)
- duration ofreview investigations (Art. 11.4)
- public notice requirements (Art. 12)
- procedures foron-the-spot investigation (Annex I)
- procedures regarding useofbestinformation available (Annex II)
Question: Iftherearenospecific statutory provisions, howwould Colombia ensure itsauthorities
would follow strictly therelevant provisions oftheWTO A-DAgreement onthese
issues? Howwould Colombia reconcile itsobligations under theWTO A-DAgreement
onthese issues withthelackofspecific statutory provisions?