RESTRICTED
WORLD TRADE G/ADP/W/203
G/SCM/W/212
ORGANIZATION 28November 1995
(95-3794)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYMALAYSIA1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 20November 1995, hasbeenreceived from theOffice
oftheUnited States Trade Representative.
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ANTI-DUMPING METHODOLOGY
EPandCEPSales: Generally, export price shallbetheprice actually paidorpayable forthe
subject merchandise. When theexported andtheimporter arerelated orlinked bya"compensatory
arrangement" (notdefined), 17(2) oftheAct(page 15)callsforexport price tobeconstructed onthe
basis oftheprice atwhich themerchandise isresold toanindependent buyer, or,ifitisnotresold
toanindependent buyer, "onanyreasonable basis".
1. Canyougiveanyindication ofwhat"reasonable basis" willapply insuchcircumstances?
Adjustments: 18oftheAct(page 16)callsforexport price andnormal value tobeexamined
onacomparable basis astophysical characteristics, selling conditions, contemporaneity ofperiod of
sale, and"any other differences affecting price comparability" andforadjustments tobemade
accordingly. Anexporter orimporter claiming anadjustment under thissection mustprove thatits
claim isjustified.
2. Under Malaysian law,which adjustments willbemade tonormal value, andwhich toexport
price?
Price Averaging: 31oftheRegulations (Page 42)states (infull): "[a]sageneral matter, a
specific company export price andnormal value willbecalculated onaweighted average basis."
3. What exceptions tothisprocedure arethere?
4. How isthisconsistent withA-DArticle 2.4.2?
Exclusion ofSales Below COP: Pursuant to16(3) oftheAct(Page 15),salesinthedomestic
market maybeexcluded fromuseincalculating normal value iftherearereasonable grounds tobelieve
orsuspect theywere made below costofproduction.
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5. Willsalesbeexcluded based upon mere suspicion thatthey maybebelow cost? How will
Malaysia determine whether saleswere, infact,made below thecostofproduction?
6. Article 2.2.1 oftheA-DAgreement applies thecostrecovery testtothesales below cost.
How willMalaysia implement thisrequirement?
SUBSIDIES AND COUNTERVAILING MEASURES
Definition ofSubsidy/Specificity 2(2)oftheAct(Page 6)defines asasubsidy anyfinancial
benefit orcontribution provided byapublic entity to(i)aspecific enterprise, industry orgroup of
industries; or(ii)"exporters", adding thegeneral caveat "where other conditions asmaybeprescribed
havebeenmet.
7. TheMalaysian lawwould appear toindicate thatanybenefit provided toanexporter were
apersesubsidy. Isthisaccurate? Ifsocanyouplease explain howthisisconsistent with
Article 3.1(a)n.4 oftheSCM Agreement provides that"[t]he mere factthatasubsidy isaccorded to
enterprises which export shallnotforthatreason alone beconsidered tobeanexport subsidy within
themeaning ofthisprovision."
8. How willMalaysia define "specific"?
9. How willMalaysia implement theprovisions ofArticle 8?
INVESTIGATION PROCEDURES
Initiation/Industry Support: TheMalaysian lawdoesnotappear tocontain provision concerning
industry support comparable tothe50percent-25percentstandard ofArticle 5.4oftheA-D
Agreement.
10. How willMalaysia implement theprovisions ofArticle 5.4?
Standard forObtaining Reviews
11. AreMalaysian authorities required toconduct refund reviews uponrequest byaparty making
thenecessary evidentiary showing asrequired byArticle and9.3.2 oftheA-DAgreement?
12. Article 19oftheSCM Agreement provides thatcountervailing duties shallnotbelevied on
anyimported product inexcess oftheamount ofthesubsidy found toexist. Intheabsence ofrefund
reviews inCVD cases, howdoesMalaysian lawcomply withthisprovision?
NewShippers
13. TheMalaysian lawdoesnotappear toprovide fornewshipper reviews, which arerequired
pursuant toArticle 9.5oftheA-DAgreement andArticle 19.3oftheSCM Agreement. Isthisaccurate?
Sunset 13(6)(CVD) (page 14)and28(6)(AD) (page 22)oftheActprovide thatduties shall
notbecollected onimports made afterfiveyears fromthedateofpublication ofthefinaldetermination
unless theGovernment determines onthebasisofanadministrative review "thatthere isgood cause"
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14. Article 11.3oftheA-DAgreement andArticle 21.3oftheSCM Agreement provide thatduties
shallbeterminated notlaterthanfiveyears fromtheirimposition absent adetermination that"theexpiry
ofthedutywould belikely toleadtocontinuation orrecurrence ofsubsidization/dumping andinjury".
Howdothevague "good cause" standard oftheActandthe"injury [only]" standard oftheregulations
implement these provisions?
15. Article 11.5oftheA-DAgreement andArticle 21.5oftheSCM Agreement callforthe
provisions ofArticles 11(A-D) and21(SCM)(including thesunset provisions) toapply,
mutatis mutandis ,toundertakings. How willMalaysia implement these provisions?
JUDICIAL REVIEW
16. HastheTribunal called forin32oftheAct(page 23)beenestablished?
17. Article13oftheA-DAgreementandArticle23oftheSCMAgreementrequirethateachmember
provide forjudicial, arbitral oradministrative tribunals forreview ofA-D/CVD determinations, and
thatsuchtribunals "beindependent oftheauthorities responsible forthedetermination orreview in
question".GiventheconsiderablecontroloftheMinisteroverthetribunalwhichwouldreviewAD/CVD
determinations forwhich heserved asadecision-maker, canyouclarify howindependent review is
available inMalaysia forA-DandCVD determinations, asrequired bytheA-DandSCM Agreements?
Implementation ofadverse panel reports:
18. IfMalaysia chooses toimplement anadverse WTO panel report, arethereanyprovisions under
Malaysian lawspecifically forimplementing thepanel reports?