**Provisional Rules of Ministry of Foreign Trade & Economic Cooperation
on\
Price Undertakings In Antidumping Investigations**

## **Chapter 1 General Provisions**

**Article 1** With a view to ensuring reasonability and effectiveness of
the application of antidumping measures, these Rules are formulated in
accordance with provisions of the "Antidumping Regulation of the
People's Republic of China".

**Article 2** The Ministry of Foreign Trade and Economic Cooperation
(hereinafter referred to as MOFTEC) delegates the Bureau of Fair Trade
for Import and Export to be responsible for implementation of these
Rules.

**Article 3** The term "Price Undertakings" mentioned in these Rules
refers to as undertakings voluntarily offered to MOFTEC by exporters and
producers who have responded to an antidumping investigation by way of
revising prices or ceasing exports of the product under investigation at
dumped prices, and accepted by MOFTEC, in order to suspend or terminate
the said investigation.

## Chapter 2 Offer of Price Undertakings

**Article 4** The responding exporters and producers may offer a price
undertaking to MOFTEC; MOFTEC may also suggest the responding exporters
and producers to offer the price undertaking.

**Article 5** MOFTEC shall not force relevant exporters and producers to
enter into any price undertaking. The fact that exporters and producers
do not offer a price undertaking or do not accept the suggestion of such
price undertaking shall in no way prejudice the consideration of its
dumping and dumping margin.

**Article 6** The offer of a price undertaking shall be made no later
than 45 days after the preliminary determination is publicly announced.

**Article 7** MOFTEC shall not suggest exporters and producers to offer
a price undertaking or accept such undertaking from exporters and
producers unless a preliminary affirmative determination of dumping and
injury caused by such dumping is made.

**Article 8** Where an offer of a price undertaking contains
confidential information, exporters and producers making the offer may
file an application to MOFTEC for confidentiality treatment for that
information, and shall provide a non-confidential summary for that
confidential information.

**Article 9** MOFTEC shall notify other interested parties of a price
undertaking offered upon the receipt of it from exporters and producers
concerned, and shall provide a non-confidential version of such
undertaking for them to make comments thereon. Such comments shall be in
written form and submitted within the period stipulated in the
notification.

## Chapter 3 Acceptance or Non-acceptance of Price Undertakings

**Article 10** MOFTEC, while considering acceptance of a price
undertaking offered, shall examine the following factors:

Whether the injury caused by dumping can be eliminated;

Whether there exist effective measures to monitor its fulfilment;

Whether such acceptance is consistent with public interests of the
People's Republic of China;

Whether there exists any possibility of circumvention;

Other factors MOFTEC considers necessary to examine.

**Article 11** MOFTEC only accepts the price undertaking offered by
exporters and producers who have been fully cooperative during the
period of investigation.

**Article 12** Where a price undertaking offered by exporters and
producers is considered acceptable, MOFTEC may, after consulting with
the State Economic and Trade Commission, decide to suspend or terminate
the antidumping investigation on the exporter and producer making the
undertaking.

A Public Notice of the decision for suspension or termination of the
antidumping investigation shall be given by MOFTEC.

**Article 13** Where the acceptance of a price undertaking offered is
considered impractical or inappropriate, MOFTEC shall notify the
exporters and producers offering such undertaking of reasons for such
non-acceptance, and give them full opportunity to make comments thereon.

The decision of non-acceptance of a price undertaking and reasons shall
be explicitly written in the final determination.

## Chapter 4 Content, Duration and Monitoring of Fulfilment Of Price Undertakings

**Article 14** A price undertaking shall contain, but not limited to,
the following items:

Scope of product;

Reference prices, including price establishment, form of price increase,
margin of price increase, price adjustments at different stages;

Reporting obligation;

Explicit intent of acceptance of on-the-spot verification;

Guaranty of non-circumvention of the price undertaking;

Other content MOFTEC considers necessary to contain.

**Article 15** The level of the price increase under a price undertaking
shall be equivalent to the dumping margin established in the preliminary
determination; where the level of the price increase under a price
undertaking is less than the dumping margin established but adequate to
remove the injury to the domestic industry, such price increase may be
less than dumping margin.

**Article 16** A price undertaking shall become effective from the date
of Public Notice given by MOFTEC with respect to the decision of
suspension or termination of the antidumping investigation, and shall
remain in force for 5 years.

Where MOFTEC only accepts an undertaking from a proportion of exporters
and producers who have responded to the investigation, the duration
specified in the preceding Paragraph of this Article shall start from
the date of completion of the antidumping investigation on other
exporters and producers who are not subject to the undertaking.

**Article 17** MOFTEC may take the following ways to monitor the
fulfilment of a price undertaking:

To require the exporter and producer from whom an undertaking is made to
provide periodically information relevant to the fulfilment of such an
undertaking, including actual quantity and price of exports, name of
importers, etc.;

To verify periodically with the Customs data of exports of the product
under investigation to the People's Republic of China made by the
exporter and producer from whom the undertaking is made

To carry out periodically or non-periodically on-the-spot verification
on the exporter and producer from whom the undertaking is made;

To collect and verify information with domestic importers of the
exporter and producer making the undertaking;

Other ways MOFTEC considers appropriate to take.

**Article 18** After an antidumping investigation is suspended or
terminated pursuant to the Paragraph 1 of Article 33 of the "Antidumping
Regulation of the People's Republic of China", the investigating
authorities may decide continuation of the investigation on dumping and
injury if relevant exporters and producers so request or the
investigating authorities consider it necessary.

**Article 19** Where an investigation is continued pursuant to Article
18 of these Rules, the price undertaking shall remain effective if the
investigation results in an affirmative determination of dumping and
injury.

**Article 20** Where an investigation is continued pursuant to Article
18 of these Rules, the price undertaking made by relevant exporters and
producers shall automatically lapse if the investigation results in a
negative determination of dumping.

If the investigation results in a negative determination of injury, the
antidumping investigation shall be terminated and the price undertaking
made by exporters and producers shall also automatically lapse in
accordance with provision of Paragraph 2 of Article 27 of the
"Antidumping Regulation of the People's Republic of China".

**Article 21** Where an investigation is continued pursuant to Article
18 of these Rules, if the investigating authorities did not make an
affirmative determination of either dumping or injury due to the
existence of a price undertaking, MOFTEC may decide to maintain the
undertaking for a reasonable period.

## Chapter 5 Cancellation, Withdrawal and Violation Of Price Undertakings

**Article 22** In case MOFETEC considers it no longer consistent with
public interests of the People's Republic of China to continue the
fulfilment of a price undertaking, MOFTEC may cancel the decision of
accepting such an undertaking.

**Article 23** MOFTEC shall, within a reasonable period prior to the
date on which the cancellation becomes effective, notify exporters and
producers from whom the undertaking is made of the intent of the
cancellation, and shall give them full opportunity to make comments
thereon.

**Article 24** Exporters and producers making a price undertaking may
withdraw their undertaking at any time during the period that the
undertaking remains in force, provided that such withdrawal has been
submitted to MOFTEC 30 days prior to its carry-out.

**Article 25** Where MOFTEC decides to cancel the decision of accepting
a price undertaking, or exporters and producers making the price
undertaking withdraw their undertaking, MOFTEC shall notify the Customs
of applying the provisional antidumping measures according to the
original preliminary determination from the date on which such
cancellation or withdrawal becomes effective, and shall resume
immediately the antidumping investigation.

In case the original antidumping investigation has been completed and
dumping margin been finally established for that exporter and producer
making the undertaking, definitive antidumping duties shall be levied
from the date on which such cancellation or withdrawal becomes
effective.

**Article 26** A price undertaking is violated if one of the following
circumstances take places:

Exporters and producers subject to a price undertaking effect their
exports at a price less than undertaken;

The exporters and producers in question fail to provide periodically
information relevant to the fulfilment of the undertaking in accordance
with terms under the undertaking;

The exporters and producers in question refuse to permit MOFTEC to
verify data and other information they have provided;

Data and other information the exporters and producers in question have
provided relevant to the fulfilment of the undertaking are seriously
inaccurate;

The existence of obvious circumvention;

Other activities violating the price undertaking.

**Article 27** In case exporters and producers making a price
undertaking violate their undertaking, MOFTEC shall immediately resume
the antidumping investigation, and immediately apply provisional
antidumping measures using the best information available.

If the final determination establishes the existence of dumping,
definitive antidumping duties shall be levied in accordance with
provisions of Article 38 of the "Antidumping Regulation of the People's
Republic of China", and definitive duties may be levied retrospectively
on products under investigation imported not more than 90 days before
the application of provisional antidumping measures, provided that such
retrospective assessment shall not apply to imports entered before the
violation of the undertaking.

If the definitive antidumping duty established in the final
determination is higher than the amount of cash deposit established in
the preliminary determination, the difference shall be levied. If the
definitive antidumping duty established in the final determination is
lower than the amount of cash deposit established in the preliminary
determination, the difference shall be refunded.

**Article 28** Where exporters and producers making a price undertaking
violate their undertaking, if the original antidumping investigation has
been completed and dumping margins been established for such exporters
and producers violating the undertaking, definitive antidumping duties
shall be levied immediately in accordance with provisions of Article 38
of the "Antidumping Regulation of the People's Republic of China", and
definitive antidumping duties may be levied retrospectively on products
under investigation imported not more than 90 days before the
application of provisional antidumping measures, provided that such
retrospective assessment shall not apply to imports entered before the
violation of the undertaking.

## Chapter 6 Supplementary Provisions

**Article 29** Price undertakings may be concluded between MOFTEC and
the government of relevant exporting countries (regions).

**Article 30** Any price undertaking shall be notified to the Committee
on Antidumping Practices of World Trade Organization within 7 days
following its entering into force.

**Article 31** MOFTEC is responsible for interpretation of these Rules.

**Article 32** These Rules shall enter into force from date of 15 April
2002.