+-----------------------------------------------+----------------------+
| **[World Trade]{.smallcaps}**                 |                      |
|                                               |                      |
| **[Organization]{.smallcaps}**                |                      |
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|                                               |                      |
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|                                               | **G/SCM              |
|                                               | /N/1/PAK/2/Suppl.1** |
|                                               |                      |
|                                               | 15 October 2002      |
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|                                               | (02-5568)            |
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|                                               |                      |
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| **Committee on Subsidies**                    | Original: English    |
|                                               |                      |
| **and Countervailing Measures**               |                      |
+-----------------------------------------------+----------------------+

notification of laws and regulations under

article 32.6 of the agreement

PAKISTAN

[Supplement]{.underline}

The following communication, dated 8 October 2002, has been received
from the Permanent Mission of Pakistan.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**THE GAZETTE OF PAKISTAN**

**EXTRAORDINARY**

**PUBLISHED BY AUTHORITY**

**ISLAMABAD, FRIDAY, 6 SEPTEMBER 2002**

PART II

Statutory Notifications (S.R.O.)

GOVERNMENT OF PAKISTAN

MINISTRY OF COMMERCE

NOTIFICATION

*Islamabad, 6 September 2002*

**S.R.O. 599 (I)/2002** -- In exercise of the powers conferred by
section 34 of the Countervailing Duties Ordinance, 2001 (I of 2001), the
Federal Government is pleased to make the following rules, namely:

1\. **Short title and commencement** -- (1) These rules may be called
the Countervailing Duties Rules, 2002.

\(2\) They shall come into force at once.

2\. **Definitions** -- (1) In these rules, unless there is anything
repugnant in the subject or context, -

\(a\) \"application\" means an application made under section 11 of the
Ordinance;

\(b\) \"Ordinance\" means the Countervailing Duties Ordinance, 2001 (I
of 2001); and

\(c\) \"Schedule\" means the Schedule annexed to these rules.

\(2\) All words and expressions used but not defined shall have the
meaning assigned to them in the Ordinance.

**3. Disclosure in application** -- An application shall contain the
information specified in section 11 of the Ordinance, as is reasonably
available to an applicant on the following, namely: -

\(a\) name, address, telephone number, facsimile number and electronic
mail address of the applicant;

\(b\) the identity of domestic industry by or on behalf of which the
application is being made including the names, addresses, telephone
numbers, facsimile numbers and electronic mail addresses of all other
known producers or association of producers which is a trade
organization as defined in the Trade Organizations Ordinance, 1961 (XLV
of 1961), and has been granted or deemed to have been granted a licence
thereunder in respect of the concerned domestic industry;

\(c\) information relating to the degree of domestic industry support
for the application including volume and value of domestic production of
a like product by the applicant and by each domestic producer
identified;

\(d\) a complete description of an allegedly subsidized product
including the technical characteristic and uses and its current customs
tariff classification number as contained in the First Schedule to the
Customs Act, 1969 (IV of 1969).

\(e\) the name of exporting country, identity of each known exporter or
foreign producer, and a list of known persons importing the product in
question;

\(f\) evidence with regard to the existence, amount, nature and
countervailability of subsidy in question;

\(g\) information on changes in volume of allegedly subsidized imports,
the effect of those imports on prices of a like product in domestic
market and the consequent impact of the imports on domestic industry as
demonstrated by relevant factors and indices having a bearing on the
state of domestic industry, such as those listed in the explanation to
sub-section (1) of section 9, and in sub-section (3) of section 9 of
Ordinance.

\(h\) the exporter(s) or producer(s) the applicant believes sells the
allegedly subsidized product and the proportion of total exports to
Pakistan that exporter or producer accounted for during the most recent
twelve-month period;

4\. **Commission to avoid publicizing application** -- The Commission
shall not, unless a decision has been made to initiate an investigation,
publicize an application.

5\. **Initiation of investigation** -- The Commission shall normally
decide whether or not to initiate an investigation within a period of
forty-five days of the date of receipt of an application complaint with
the requirements of section 11 of the Ordinance and rule 3:

Provided that when such application involves complex issues, or if the
Commission has sought additional information from an applicant, the
time-period may, if the Commission so deems fit, be extended to sixty
days.

6\. **Disclosure in notice of initiation of an investigation** -- The
notice of initiation of an investigation referred to in sub-section (14)
of section 11 of the Ordinance shall contain adequate information on the
following, namely: -

\(a\) The name of the country or countries of export, and if different,
the country or countries of origin of an investigated product;

\(b\) a complete description of an investigated product including the
technical characteristics and uses of such product and its current
tariff classification number as contained in the First Schedule to the
Customs Act, 1969 (IV of 1969);

\(c\) a description of the alleged subsidization to be investigated
including the basis for such allegations;

\(d\) a summary of the factors on which the allegations of injury are
based;

\(e\) the address where information and comments may be submitted and
the time-period allowed to interested parties for making their views
known;

\(f\) the date of initiation of an investigation (being the date of
publication of notice); and

\(g\) the proposed schedule for an investigation.

7\. **Acquisition of information** -- (1) Subject to sub-rule (2), the
Commission shall solicit, gather, obtain, accept or reject information
for the purposes of an investigation in accordance with the following,
namely: -

\(a\) Upon initiation of an investigation, the Commission shall send
questionnaires to any person it believes may have information relevant
to an investigation including known domestic producers, importers,
exporters and foreign producers and, such questionnaires may require
such information, as the Commission deems necessary;

\(b\) the Commission may disregard any reply to a questionnaire, which
is not submitted within the time provided or in the form requested;

\(c\) the Commission may, during the course of an investigation, request
further information from interested parties, in the form of
supplementary questionnaires, or written requests for clarification or
additional information and such requests shall state the date by which
reply is due and sufficient time shall be granted by the Commission in
order to allow meaningful replies; and

\(d\) any interested party may, on its own initiative, submit to the
Commission, in writing, any information it considers relevant to an
investigation and the Commission shall consider such information unless
such consideration would be unduly burdensome to the Commission or
disrupt the timely progress of an investigation.

\(2\) Any factual information relevant to the determination of the
amount of subsidy or injury voluntarily submitted shall be considered by
the Commission only if it is received in writing no later than two weeks
prior to the date of provisional determination.

\(3\) An applicant shall provide all information reasonably required by
the Commission subsequent to the filing of an application to enable it
to proceed with an investigation pursuant to sub-section (3) of section
11 of the Ordinance.

8\. **Preliminary written arguments** -- Not later than fifteen days
before the scheduled date of provisional determination, interested
parties may submit written arguments to the Commission concerning any
matter relevant to an investigation.

9\. **Disclosure in notice of provisional measures** -- The notice of
provisional measures referred to in sub-section (3) of section 25 of the
Ordinance shall contain the following information in addition to the
information specified in the said sub-section, namely:

\(a\) The names of the known exporters and producers of an investigated
product;

\(b\) description of an investigated product which is sufficient for
customs purposes including the current customs tariff classification
number as contained in the First Schedule to the Customs Act, 1969 (IV
of 1969);

\(c\) the amount of subsidy, if any, found to exist and the basis for
such determination including a description of the methodology used in
determining the amount of countervailable subsidy;

\(d\) the factors that have led to the determination of injury including
information on factors other than subsidized imports that have been
taken into account; and

\(e\) the amount of any provisional measures to be applied and the
reasons why such provisional measures are necessary to prevent injury
caused during an investigation.

10\. **Request for hearing** -- Any request for a hearing by an
interested party shall be made not later than thirty days of the date of
publication of notice of provisional measures.

11\. **Procedure for on the spot investigation** -- For the purposes of
a verification visit under section 26 of the Ordinance, the Commission
shall carry out on the spot investigation in accordance with the
procedure as provided in Schedule I.

12\. **Written arguments** -- (1) In an investigation in which no
hearing is requested, any interested party may submit written arguments
to the Commission concerning any matter it considers relevant to an
investigation not later than forty-five days before the date proposed
for final determination.

\(2\) In an investigation in which a hearing is held, any interested
party may, not later than ten days before the specified date of a
hearing, submit written arguments to the Commission concerning any
matter it considers relevant to an investigation. Following such a
hearing, interested parties who participated in the hearing may, within
ten days, submit further written arguments to the Commission in response
to arguments and information presented at the hearing.

13\. **Procedure for a hearing** -- (1) The Commission shall, upon a
request made under rule 10, hold a hearing at which all interested
parties may present information and arguments:

Provided that such a hearing shall be held not later than sixty days
prior to the date proposed for final determination.

\(2\) There shall be no obligation on any interested party to attend a
hearing, and failure to do so shall not be prejudicial to that
interested party\'s case.

\(3\) A hearing shall, to the extent possible, be organized by the
Commission so as to take into account the convenience of the interested
parties.

\(4\) At least seven days before the date of a hearing interested
parties intending to appear at the hearing shall notify the Commission
of the names of representatives and witnesses who shall appear at the
hearing.

\(5\) A hearing shall be organized in such manner so as to ensure that
all parties participating have an adequate opportunity to present their
views.

\(6\) The Secretary to the Commission shall maintain the record of a
hearing, which subject to the requirement to protect confidential
information under section 29 of the Ordinance be promptly placed in the
public file to be maintained under section 39 of the Ordinance.

14\. **Disclosure before final determination** -- (1) After a hearing
has been held and the Commission has completed verification of
information collected in the course of an investigation and, in any
event, at least thirty days before the proposed date for final
determination, the Commission shall inform all interested parties, in
writing, subject to the requirement to protect confidential information
under section 29 of the Ordinance, of the essential facts under
consideration which shall form the basis of a decision whether to apply
definitive measures under the Ordinance:

Provided that such information shall not indicate whether a final
determination is affirmative or negative.

\(2\) Interested parties may submit comments, if any, on the information
disclosed to them by the Commission pursuant to sub-rule (1), in
writing, not later than fifteen days after such disclosure by the
Commission.

15\. **Disclosure in the notice of final determination** -- The notice
of final determination provided for in sub-section (3) of section 25 of
the Ordinance shall, in addition to the information required under the
Ordinance, contain the following information, namely:

\(a\) the names of the known exporters and producers of an investigated
product;

\(b\) description of an investigated product which is sufficient for
customs purposes, including the current tariff classification number as
contained in the First Schedule to the Customs Act, 1969 (IV of 1969);

\(c\) the amount of subsidy, if any, found to exist and the basis for
such determination including a description of the methodology used in
determining the amount of countervailable subsidy;

\(d\) the factors that have led to the determination of injury within
the meaning of the Ordinance including information on factors other than
subsidized imports that have been taken into account;

\(e\) any other reasons leading to final determination; and

\(f\) the reasons for the acceptance or rejection of relevant arguments
or claims made by exporters and importers.

16\. **Disclosure after final determination** -- (1) After publication
of the notice of final determination, the Commission shall, on request
made within fifteen days of the publication of the notice of final
determination, hold separate disclosure meetings with exporters or
producers requesting such meeting, to explain the subsidy calculation
methodology finally applied for that exporter or producer.

\(2\) The Commission shall provide an opportunity to the exporters or
producers or their legal representatives to examine and receive copies
of the subsidy calculations done by the Commission for their exports to
Pakistan.

17\. **Disclosure in application for refund of countervailing duty
collected** -- (1) An application under section 22 of the Ordinance for
refund of countervailing duty collected shall contain the following
information, namely:

\(a\) The amount of refund of countervailing duty claimed for the
period;

\(b\) all customs documentation relating to calculation and payment of
such amount; and

\(c\) sufficient information to enable the Commission to calculate the
amount of subsidy for the period for which the refund is requested.

18\. **Disclosure in notice of acceptance of undertaking** -- The notice
of acceptance by the Commission of an undertaking referred to in
sub-section (3) of section 25 of the Ordinance shall also contain the
following information, namely:

\(a\) The names of the known exporters and producers of an investigated
product;

\(b\) description of an investigated product which is sufficient for
customs purposes including the current customs tariff classification
number as contained in the First Schedule to the Customs Act, 1969 (IV
of 1969);

\(c\) the amount of subsidy found to exist and the basis for such
determination; and

\(d\) the factors that have led to the determination of injury including
information on factors other than subsidized imports that have been
taken into account;

19\. **Fee payable under the Ordinance** -- The fee payable to the
Commission at the time of submission of an application under section 11
of the Ordinance shall be in the amount as specified in Schedule II.

20\. **Reviews** -- The provisions of sections 11 and 12 of the
Ordinance and rule 3 shall, *mutatis mutandis*, apply to any review
carried out under sections 19, 20 or 21 of the Ordinance.

**SCHEDULE I**

\[*See* rule 11\]

PROCEDURE FOR ON THE SPOT INVESTIGATION

1\. Upon initiation of an investigation, the government an exporting
country and the firms known to be concerned should be informed of the
intention to carry out on the spot investigation by the Commission.

2\. If in exceptional circumstances it is intended to include
non-governmental experts in an investigating team, the firms and the
authorities of an exporting country should be so informed. Such
non-governmental experts should be subject to effective sanctions for
breach of confidentiality requirements under the Ordinance.

3\. The Commission shall normally obtain explicit agreement of the firms
concerned in an exporting country before a visit is finally scheduled.

4\. As soon as the agreement of the firms concerned has been obtained,
the Commission shall notify the concerned authorities of an exporting
country of the names and addresses of the firms to be visited and the
dates agreed.

5\. Sufficient advance notice should be given by the Commission to the
firms in question before a visit is made.

6\. Visits to explain the questionnaire should only be made at the
request of an exporting firm. Such a visit may only be made if:

\(a\) the Commission notifies the concerned representatives of an
exporting country; and

\(b\) the latter does not object to the visit.

7\. As the main purpose of an on the spot investigation is to verify
information provided or to obtain further details, it should be carried
out after the response to a questionnaire has been received unless the
firm agrees to the contrary and the government of an exporting country
is informed by the Commission of an anticipated visit and does not
object to it. The Commission shall normally advise the firms concerned
of the general nature of the information to be verified and of any
further information which needs to be provided, however, such
requirement shall not preclude the Commission from requesting further
details on the spot to be provided in the light of information obtained.

8\. Enquiries or questions put by the authorities or firms of an
exporting country and essential to a successful on the spot
investigation shall, whenever possible, be answered by the Commission
before a visit is made.

**SCHEDULE II**

\[*See* rule 19\]

FEE TO BE PAID TO THE COMMISSION

For an application under section 11 of the Ordinance Rs. 75,000

\[F. No. 1 (15/97-WTO\]

MUHAMMAD ARSHAD LODHI

*Research Officer (WTO)*

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