RESTRICTED
WORLD TRADE G/ADP/W/36
G/SCM/W/44
ORGANIZATION 8August 1995
(95-2332)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFKOREA OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6THE AGREEMENTS
Thefollowing communication, dated 14July,hasbeenreceived fromtheHong Kong Economic
andTrade Office.
_______________
ListofQuestions forKorea 'sAnti-dumping Legislation
TheCustoms Act
Article 10(2)
1. Article 6.8oftheWTO ADAgreement provides thatincases inwhich anyinterested party
refuses access to,orotherwise doesnotprovide, necessary information within areasonable period
orsignificantly impedes theinvestigation, preliminary andfinaldeterminations maybemade onthe
basisofthefactsavailable. Theprovisions for'bestinformation available 'inAnnex IIoftheAgreement
shallbeobserved.
Article 8.6oftheAgreement states thatincaseofviolation ofundertakings, theauthorities
oftheimporting country maytake,under theAgreement inconformity withitsprovisions, expeditious
actions which mayconstitute immediate application ofprovisional measures using thebestinformation
available.
Article 10(2) oftheCustoms Actstates thatincases where theundertakings byexporters are
notfulfilled, orademand forthepresentation ofmaterials onthefulfilment oftheundertakings and
ademand toallow theverification ofthematerials presented isnotcompiled, anyutmost information
available shallapply inthedetermination ofdumping andmaterial injury, etc.
Article 4-11(10) oftheEnforcement Decree oftheCustoms Actstates thatiftheexporter
refuses tofulfiltheundertaking, theMinister ofFinance andEconomy maycontinue theanti-dumping
measures onthebasis ofanyinformation available .
Question: Would Korea clarify whether theterms 'utmost information available 'and'any
information available 'willbeapplied inaccordance withtheprovisions of'best
information available 'asprovided intheWTO ADAgreement? Howwould theKorean
legislation ensure compliance withprovisions inAnnex IIoftheWTO ADAgreement?G/ADP/W/36
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Article 10(3) -Price undertaking
2. Article 8.1oftheWTO ADAgreement provides thatproceedings maybesuspended or
terminated without theimposition ofprovisional measures oranti-dumping duties upon receipt of
satisfactory voluntary undertakings from anyexporter torevise itsprices ortocease exports tothe
areainquestion atdumped prices sothattheauthorities aresatisfied thattheinjurious effect ofthe
dumping iseliminated.
Article 10(3) oftheCustoms Actstates thattheexporter ortheMinister ofFinance andEconomy
mayofferorsuggest undertakings torevise theprice ortocease orreduce exports sothattheinjury
caused bythedumping could beeliminated.
Question: Would Korea clarify whether theprovision onundertakings asprovided forunder
Article 10(3) oftheCustoms Actmeans 'undertakings tocease orreduce exports at
dumped prices '?Would Korea advise ifthereisanydifference between thetwoarticles
inproviding forundertakings?
TheEnforcement Decree oftheCustoms Act
Article 4-2-Request fortheImposition ofanADDuty
3. Article 4-2(1) states thatanyinterested party toadomestic industry suffering material injury
mayrequest theMinister ofFinance andEconomy toimpose anti-dumping dutyunder theconditions
asprescribed bytheOrdinance ofthePrime Ministry.
Question: CanKorea elaborate whatarethose 'conditions '?What does'theOrdinance ofthe
Prime Ministry 'referto?
Article 4-10-Application ofProvisional Measures
4. Under Article 4-10(3) oftheEnforcement Decree oftheCustoms Act,theMinistry ofFinance
andEconomy mayprolong theapplication period oftheprovisional measures inaccordance withthe
international agreement ,ifitisdeemed necessary .
Question: Onthe‘international agreement ’,isitreferring totheWTO ADAgreement, Article 7.4
inparticular? Forthephrase ‘deemed necessary ’,would Korea clarify whatwould
betheconsiderations oftheMinistry ofFinance andEconomy?
5. Article 7.2oftheWTO ADAgreement provides thatprovisional measures maytaketheform
ofasecurity equal totheamount oftheanti-dumping dutyprovisionally estimated, being notgreater
thantheprovisionally estimated margin ofdumping. Article 4-10(4) oftheEnforcement Decree of
theCustoms Acthowever states thatthesecurity shallbeprovided invalue exceeding theamount
equivalent totheprovisional anti-dumping duty.
Question: Itseems thatthisArticle contradicts therequirement oftheWTO ADAgreement.
Would Korea provide anexplanation forthis?G/ADP/W/36
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Article 4-12-Retroactive Imposition oftheAnti-Dumping Duty
6. According tosub-paragraph 4ofArticle 4-12(1), retroactive anti-dumping dutymaybeimposed
onother products imported during suchaperiod asdetermined bytheMinister ofFinance andEconomy
under theconditions asprescribed bytheinternational agreement.
Question: What arethe'other products '?What conditions intheinternational agreement isit
referring to?
TheRegulation oftheCustoms Act
Article 4-Application fortheInvestigation fortheImposition ofanADDuty
7. According toArticle 4-2(2) oftheEnforcement Decree oftheCustoms Act,domestic industry
means thedomestic production industry thataccounts foralloramajor portion ofthetotaldomestic
production oftheproducts thatarethesame inkindandquality andtheproducts similar withthose
imported ataprice thatislower thanthenormal value.
Article 4(1)oftheRegulation oftheCustoms Actdefines thattheterm'product same inkind
andquality 'means aproduct thatisidentical inallrespects, including physical characteristics, quality,
recognition bytheusers, etc.(including products altered insignificantly inappearance) totheimported
product andtheterm'similar product 'means aproduct which, although nottheproduct same inkind
andquality, canbesubstituted fortheimported product duetoanidentical function anddueto
characteristics andconstituent parts thataresimilar tosuchimported product.
Article 4.1oftheWTO ADAgreement states thattheterm 'domestic industry 'shall be
interpreted asreferring tothedomestic producers asawhole ofthelikeproducts ortothose ofthem
whose collective output oftheproducts constitutes amajor proportion ofthetotaldomestic production
ofthose products.
Article 2.6oftheWTO ADAgreement stipulates thattheterm'likeproduct 'shallbeinterpreted
tomean aproduct which isidentical, i.e.alikeinallrespects totheproduct under consideration, or
intheabsence ofsuch aproduct, another product which although notalike inallrespects, has
characteristics closely resembling those oftheproduct under consideration.
Comment: IntheKorean ADlegislation, thedefinition of'similar product 'doesnotfollow the
definition of'likeproduct 'intheWTO ADAgreement. Thismayaffect theconstituents
ofthedomestic industry.
Question: Would Korea provide more precise information onhowaproduct willberegarded
assubstitute foranimported product? Would Korea explain anydifference between
'likeproduct 'and'similar product '?
Article 4-4-Comparison between theNormal Value andtheDumping Price
8. Sub-para.2ofArticle4-4(1)andArticle4-4(6)oftheRegulationmakereferencetoArticle3-6(1)
oftheDecree. However, Article 3-6(1) oftheDecree isnotavailable inthenotified document. Could
Korea provide further details about thisarticle?G/ADP/W/36
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Keyissues intheWTO ADAgreement which arefound silent intheKorean ADlegislation
Article 1oftheWTO ADAgreement stipulates thatananti-dumping measure shallbeapplied
onlyunder thecircumstances provided forinArticle VIofGATT 1994andpursuant toinvestigations
initiated andconducted inaccordance withtheprovisions oftheAgreement.
Article 18.1oftheWTO ADAgreement states thatnospecific action against dumping ofexports
from another Member canbetaken except inaccordance withtheprovisions ofGATT 1994, as
interpreted bytheAgreement.
TheKorean legislation issilent onanumber ofkeyissues onwhich therearespecific provisions
intheWTO ADAgreement. Thismayleadtoapplication ofanti-dumping measures notinaccordance
withtheprovisions oftheWTO ADAgreement, which would constitute violation ofArticle 1and18.1
oftheWTO ADAgreement:
(I) Time-limit forcompleting questionnaires
Article 6.1.1 oftheWTO ADAgreement provides thatexporters shallbegiven atleast30days
forreply toquestionnaires inananti-dumping investigation.
There arenosuchprovisions, however, intheKorean Customs Actanditssub-regulations.
(II) Industrial users andrepresentative consumer organizations
Article 6.12 oftheWTO ADAgreement provides opportunities forindustrial users and
representative consumer organizations toprovide information which isrelevant totheinvestigation
regarding dumping, injury andcausality.
TheKorean Customs Actanditssub-regulations donotprovide suchprovisions.
(III) On-site investigation
Annex IoftheWTO ADAgreement setsoutsome specific procedures forcarrying outon-site
investigations.
Suchprocedures, however, arenotspecified intheKorean Customs Actanditssub-regulations.
Question:
9. Would Korea confirm thatitwould observe therelevant provisions oftheWTO ADAgreement
ontheseissues? Does Korea haveanyintentions toenact newprovisions ontheseissues inconformity
withtheWTO ADAgreement?