RESTRICTED
WORLD TRADE G/ADP/W/298
G/SCM/W/306
ORGANIZATION 26February 1996
(96-0707)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYKOREA1
CONCERNING THE NOTIFICATION
OFLAWS AND REGULATIONS OFISRAEL2
Thefollowing communication wasreceived from thePermanent Mission ofIsrael on
15February 1996.
_______________
Q1. General Questions
(a) Incases where there arenorelevant provisions inthedomestic legislation, doesthe
WTO Agreement apply?
(b) Iftheprovisions oftheexisting domestic legislation donotconform totheWTO
Agreement, dotheprovisions oftheWTO Agreement apply?
A1. (a) AstheGovernment ofIsrael hasratified, inApril 1995, itsmembership intheWTO
andtheAgreements made within thatframework, itfollows thatincases where there
arenocontradictions between theAgreement andthecurrent Law(which ispresently
intheprocess ofbeing revised soastoconform totheAgreement) thattheprovisions
oftheAgreement doapply. Duetothelanguage ofthecurrent Law, inpractice the
Authorities follow, totheextent possible, theprovisions oftheAgreements.
(b) Asthecurrent Lawisbeing revised inorder tobring itintoconformity withthe
provisions oftheAgreement wedonotexpect theproblem of"non-conformity" to
arise. Prior totherevision ofthecurrent Law, according totheIsraeli legalsystem
inthecase, which would beextremely rare, ofadirect contradiction between the
Agreement andtheLaw, theprovisions ofthedomestic legislation would override.
Itshould benoted however, thataccording toIsraeli principles ofjurisprudence itis
presumed thattheIsraeli legislature enacts lawswhich areinconformity withprinciples
ofinternational law.Therefore itcanbeexpected thattheIsraeli Courts willinterpret
theLawinconformity withtheAgreements.
1G/ADP/W/168-G/SCM/W/175.
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Comparison withacomparable price ofthelikeproduct
Q2. InaccordancewithArticle2.2oftheWTOAgreement,themarginofdumpingshallbedetermined
bycomparisonwithacomparablepriceofthelikeproductwhenexportedtoanappropriatethirdcountry,
provided thatthisprice isrepresentative, incasethere arenosalesofthelikeproduct intheordinary
course oftrade inthedomestic market oftheexporting country.
However, Israel regulates thatthehighest price ofidentical goods exported toathirdcountry
inthecourse ofordinary business shall beused asthenormal price ofgoods inTitle Three,
Article 12(b)(1) oftheAnti-Dumping LawofIsrael.
Thisprovision would artificially increase thedumping margin andshould berevised properly
according totheWTO Agreement.
What isIsrael 'sopinion onthis?
A2. Section 12(b) oftheLawreflects thelegalsituation prevailing in1991sincetheLawwasenacted
inconformity totheAnti-Dumping Code of1979. Therevisions presently taking place willconsider
theexclusion ofSection 12(b) from theproposed legislation.
Complaint ofdumped imports
Q3. TitleFour, Article 16ofIsrael 'santi-dumped regulation states simply thattheproducer ofa
certain product maysubmit tothecommissioner awritten complaint. Itseems thatIsrael Government
guarantee easyfiling ofcomplaint andthenweexpect thattheabuse offiling complaint willhappen.
Therefore,therequirementsconcerningtheinitiationandsubsequentinvestigationofanti-dumping
inArticle 5.4ofWTO agreement should bereflected inthisprovision ofIsrael 'santi-dumping law.
What isIsrael 'sopinion onthis?
A3. AsArticle 5.4isanewaddition totheAgreement, Israel willaspartofitsamending process
address theissue raised inthatArticle.
Comparison withacomparable price ofthelikeproduct
Q4. Inaccordance withArticle 9.1oftheWTO Agreement, itisdesirable thatthedutybeless
thanthemargin ofdumping ifsuchlesser dutywould beadequate toremove theinjury tothedomestic
industry, andArticle 9.3oftheWTO Agreement states thattheamount oftheanti-dumping dutyshall
notexceed themargin ofdumping.
Inconclusion, WTO regulations permit theimposition ofanti-dumping duty lessthanthe
margin ofdumping orthemargin oftheinjury.
However, TitleFive, Article 24(b) ofIsrael 'sAnti-Dumping Lawstates thattheanti-dumping
dutyshallbeattherateofsome orallofthedifference between thenormal price andtheexport price.
CanIsrael explain thereasons forthedifferent language inthetwoprovisions?
A4. Itshould benoted thatSection 24oftheLawallows infactalesser dutytobeapplied. The
Authorities concerned, mayattheirdiscretion, inkeeping withtheprovisions ofArticle 9.1oftheG/ADP/W/298
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Agreement, impose alesser dutythanthemargin ofdumping ifsuchlesser dutywould beadequate
toremove theinjury tothedomestic industry.
Rules forprice equalization
Q5. TitleThree, Article 14ofIsrael 'sAnti-Dumping Lawstates thatprices shallbeequalized under
similar commercial conditions, taking intoaccount different terms ofsales, including differences in
indirect taxes, aswellasanyother factor likely toaffect theequalization.
Article 2.4oftheWTO Agreement stipulates faircomparison asfollows:
"This comparison shallbemade atthesame leveloftrade, normally attheex-factory
level, and...." Inaddition, thisArticle gives thespecific adjustment ofthecost.
CanIsrael explain thereasons forthedifferent language inthetwoprovisions?
A5. Although thelanguage usedinSection 14oftheLawisnotidentical tothelanguage usedin
Article 2.4oftheAgreement, there isnocontradiction between thetwoprovisions andinpractice
theAuthorities follow thefaircomparison rules inArticle 2.4oftheAgreement. Inanycaseas
previously stated theLawisbeing amended anddifferent language willbeconsidered inorder tobetter
reflecttheprovisionsofArticle2.4oftheAgreement.Inpractice,itshouldbenotedthattheAuthorities,
when making acomparison between export priceandnormal value endeavour todosoattheex-factory
level.
Absence oftransparency
Q6. Ingeneral, theAnti-Dumping LawofIsrael issosimple thatitcannot properly reflect the
purpose oftheWTO Anti-Dumping Code, especially inthecaseofArticle 2(determination ofdumping),
andArticle 4(determination ofinjury)
Inaddition, there isnoprovision concerning thedeminimis.
Does Israel plantorevise itsanti-dumping lawinaccordance withtheWTO Agreement?
A6. Israel, asstated, intends torevise itsLawinaccordance withtheAgreement.