+------------------------------------------------+---------------------+
| **[World Trade]{.smallcaps}**                  |                     |
|                                                |                     |
| **[Organization]{.smallcaps}**                 |                     |
+------------------------------------------------+---------------------+
|                                                |                     |
+------------------------------------------------+---------------------+
|                                                | **G/SCM/N/1/KOR/4** |
|                                                |                     |
|                                                | 25 April 2001       |
+------------------------------------------------+---------------------+
|                                                | (01-2063)           |
+------------------------------------------------+---------------------+
|                                                |                     |
+------------------------------------------------+---------------------+
| **Committee on Subsidies**                     | Original: English   |
|                                                |                     |
| **and Countervailing Measures**                |                     |
+------------------------------------------------+---------------------+

NOTIFICATION OF LAWS AND REGULATIONS UNDER

ARTICLE 32.6 OF THE AGREEMENT

KOREA

The following communication, dated 20 April 2001, has been received from
the Permanent Mission of Korea.

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

Pursuant to Article 32.6 of the Agreement on Subsidies and
Countervailing Measures, the Government of Korea hereby wishes to notify
the revised Customs Act and its sub-regulations concerning
countervailing measures, which entered into force on 1 January 2001.
Please note that for the convenience of the readers, the Act has become
to provide separate provisions for countervailing measures, no longer
referring to those for anti-dumping measures.

**THE CUSTOMS ACT**

### Section 2. Countervailing Duty

**[Article 57 (Subjects for Imposition of Countervailing
Duty]{.underline})**

1\. In cases where the request for imposition has been made by a person
prescribed in the Presidential Decree and having interest in the
domestic industry, or the Minister of relevant authorities, and where it
is confirmed through an investigation that importation of a product
granted with subsidies or bounties directly or indirectly, with regard
to its manufacture, production, or export in a foreign country
(hereinafter referred to as "subsidies, etc."), results in any of the
following Sub-paragraphs (hereinafter referred to as \"material injury,
etc.\" in this section), and it is deemed necessary to protect the
domestic industry concerned, a duty in an amount not more than the
amount of the subsidies, etc. (hereinafter referred to as
"countervailing duty") may be additionally imposed on such products, by
designating the products and exporters or exporting country through the
Ordinance of the Minister of Finance and Economy.

(1) material injury to a domestic industry is caused or threatened;

(2) material retardation of the establishment of a domestic industry is
    caused.

**[Article 58 (Investigation on Subsidies Granted, Material Injury,
etc)]{.underline}**

1\. Investigation on the facts of granting subsidies, material injuries,
etc. shall be conducted as prescribed by the Presidential Decree.

2\. When the Minister of Finance and Economy imposes countervailing
duty, if it is deemed necessary to consider enhancing competitiveness of
related industries, price stabilization, cooperation in trade, and etc.,
those factors may be examined and reflected.

**[Article 59 (Provisional Measures prior to Imposing Countervailing
Duty)]{.underline}**

1\. When an investigation is initiated to determine whether or not a
countervailing duty is to be imposed and the import of a product for
which subsidies, etc. have been granted has caused any cases referred to
in the following Sub-paragraphs, the Minister of Finance and Economy
may, even before the investigation is concluded, adopt a measure to
order to impose a provisional countervailing duty or to provide a
security, which is not greater than the amount equivalent to the
subsidies presumed to have been granted, by designating the exporter or
exporting country of the product and the period (hereinafter referred to
as \"provisional measures\" in this section) as prescribed by the
Presidential Decree in order to protect the domestic industry.

\(1\) in case where it is confirmed that there exist sufficient
evidences to presume the fact of material injury, etc. to domestic
industry

\(2\) in case where the undertakings as referred to in Article 60 were
withdrawn or not complied with or where materials on the fulfilment of
such undertakings were not presented, and where there exists the best
information available

2\. In cases where the investigation is terminated due to a withdrawal
of request for the imposition of a countervailing duty on the products
to which a provisional measure was taken, or where the determination on
whether the countervailing duty is to be imposed is made, or the
undertakings referred to in the provisions of Article 60 are accepted,
the provisional countervailing duty paid shall be refunded or the
security provided shall be released as prescribed by the Presidential
Decree; provided that in cases of the following Sub-paragraphs, when the
amount of countervailing duty exceeds that of provisional countervailing
duty, the difference shall not be collected, and when the amount of
countervailing duty is lower than that of provisional one, the
difference shall be refunded.

\(1\) In cases where the undertakings under the provisions of article 60
is accepted after a fact of granting subsidies, etc. and material
injury, etc. caused thereby is determined to exist after investigation
thereon.

\(2\) In cases where a countervailing duty is imposed retroactively
under the provisions of provisio of Article 61.

**[Article 60 (Offer of Undertakings related to Countervailing
Duty)]{.underline}**

1\. In cases where a preliminary investigation to determine whether or
not the countervailing duty, as referred to in Article 57, is to be
imposed, determines affirmatively a fact of granting subsidies, etc. and
material injury, etc. caused thereby, the government of the country
exporting the products concerned or the Minister of Finance and Economy,
as prescribed by the Presidential Decree, may offer undertakings to
adopt any proper measure to abolish or curtail the subsidies, etc., for
the products, or to eliminate the injurious effect of the subsidies,
etc. on the domestic industry, and the exporter of the products
concerned may, with the consent of the government of the exporting
country, offer an undertaking to revise the price so that the injurious
effect of the subsidies, etc., on the domestic industry could be
eliminated.

2\. If the undertakings, as referred to in Paragraph 1, are accepted,
the Minister of Finance and Economy shall have the investigation
suspended or terminated without taking any provisional measures or
imposing the countervailing duty. However, if the Minister of Finance
and Economy deems it necessary or the government of the exporting
country requests to have the investigation on the injury continued, the
investigation may be continued.

**[Article 61 (Period to Impose Countervailing Duties)]{.underline}**

Imposition of countervailing duties and a provisional measure shall be
applied to goods imported after the date on which the respective measure
was taken; provided that in case of goods to which a provisional measure
was applied, if an international agreement or the Presidential Decree
prescribes otherwise, countervailing duties may be imposed on that
goods.

**[Article 62 (Review on Countervailing Duties, etc.)]{.underline}**

1\. The Minister of Finance and Economy, if deemed necessary, shall
review the imposition of countervailing duties and undertakings under
the provisions of Article 60 in accordance with the Presidential Decree,
and based on the result of the review, take necessary measures including
imposition of countervailing duties, changes in contents of
undertakings, refund, etc.

2\. Imposition of countervailing duties and undertakings accepted under
the provisions of Article 60 shall lose their effect five years after
the date of enforcement unless the Ordinance of the Minister of Finance
and Economy prescribes otherwise with respect to the application period,
and when their contents are changed according to the result of a review
on subsidies, etc. granted and industrial injuries under the provisions
of Paragraph 1, they shall lose effect 5 years after the date of
enforcement of those changed contents unless the Ordinance of the
Minister of Finance and Economy prescribes otherwise with respect to the
application period .

3\. Those matters necessary regarding imposition of a countervailing
duty and its enforcement under the provisions in Paragraphs 1 and 2, and
Articles 57 to 61 shall be prescribed by the Presidential Decree.

**ENFORCEMENT DECREE OF THE CUSTOMS ACT**

**[(Presidential Decree)]{.underline}**

**[Article 72 (Subsidies, etc.)]{.underline}**

1\. The term \"subsidies, etc.\" as prescribed in Article 57 of the
Act(hereinafter referred to as "subsidies, etc.") refers to benefits
with specificity conferred by financial contributions, etc. from a
government or a public institution, etc.; provided that subsidies or
bounties prescribed in the Ordinance of the Minister of Finance and
Economy are excluded.

2\. The term \"specificity\" in Paragraph 1 refers to the case where
subsidies are granted to a certain enterprise or industry, or a certain
group of enterprises or industries, and its detailed criteria shall be
prescribed by the Ordinance of the Minister of Finance and Economy.

3\. The amount of subsidies, etc. shall be calculated as prescribed in
the Ordinance of the Minister of Finance and Economy on the basis of
actual benefits of the recipient.

**[Article 73 (Request for Imposition of Countervailing
Duty]{.underline})**

1\. Any interested party to the domestic industry suffering material
injury, etc. as prescribed in Article 57 of the Act, or the Minister of
the competent Ministry in charge of such an industry, may request to the
Minister of Finance and Economy to impose a countervailing duty, as
prescribed by the Ordinance of the Minister of Finance and Economy and
such a request is substituted by the request for an investigation to the
Trade Commission required for imposing such an countervailing duty.

2\. In applying the provisions of Article 57 of the Act, a domestic
industry means the domestic production business producing all or
considerable portion of total production of the like product of the
product for which subsidies, etc. have been granted (a production
business managed by a producer who has such special relationship with
the government of exporting countries, exporters or importers of the
product as prescribed in Article 23, Paragraph 1 of the Act and a
production business managed by such a producer who is an importer of the
imported product as prescribed by the Ordinance of the Minister of
Finance and Economy may be excluded; hereinafter the same shall be
applied in this Paragraph).

3\. For the purpose of Paragraph 1, the term \"an interested party to
the domestic industry\" means a domestic producer belonging to the
domestic industry that is affected by material injury, etc., and an
association, an organisation or an individual of which the domestic
producers are members or which represents the interest of such a
domestic producer and who is the person prescribed by the Ordinance of
the Minister of Finance and Economy.

4\. When a person who has interests in the domestic industry that was
affected by material injury, etc. because of import of subsidized
products, desires to request an investigation under the provisions of
Paragraph 1, he/she shall submit an application containing each of
following elements to the Trade Commission with related documents
attached.

\(1\) names of items, dimensions, characteristics, uses, names of
producers, and production quantity of the product concerned;

\(2\) exporting countries and exporters, export record, possibility of
exportation, and importers, import record, possibility of importation of
the product concerned;

\(3\) the ex-factory price and the market price of the product concerned
in the exporting country, and the export price to Korea and third
countries;

\(4\) names of items, dimensions, characteristics, uses, names of
producers, production quantity, factory and market prices, and the cost
calculation for the like product in kind or quality or similar product
in Korea;

\(5\) matters pertaining to the material injury, etc., of the domestic
industry concerned caused by the importation of the subsidized product;

\(6\) contents of subsidies, etc. granted on manufacture, production,
and export of the product concerned in the exporting country and the
price decreasing effect of the product caused thereby;

\(7\) degree of support by domestic producers of like product in kind or
quality or similar product for the investigation request;

\(8\) If confidential treatment of the attached documents is necessary,
the reason thereof; and

\(9\) other matters as deemed necessary by the Minister of Finance and
Economy.

**[Article 74 (Initiation of the Investigation on Import of Subsidized
Products and Material Injury, etc.]{.underline})**

1\. The Trade Commission shall, upon receiving the request for an
investigation as prescribed in the latter part of Article 73, Paragraph
1, determine whether or not it will initiate an investigation on import
of subsidized products and material injury, etc., and shall notify the
Minister of Finance and Economy within 2 months of receiving such a
request of the result of the determination thereof and the following
matters:

\(1\) products subject to an investigation (in case where many products
are subject to an investigation, products selected according to the
Ordinance of the Minister of Finance and Economy);

\(2\) period subject to the investigation; and

\(3\) governments of exporting countries or exporters subject to the
investigation (in case where there are many governments or exporters
that are subject to investigation, those selected according to the
Ordinance of the Minister of Finance and Economy)

2\. In determining whether or not to initiate an investigation in
accordance with Paragraph 1, the Trade Commission may reject such a
request if the request for an investigation falls under any of the
following sub-paragraphs:

\(1\) In case a person who has filed the written request is ineligible
to request imposition under Article 73, Paragraph 1;

\(2\) In case sufficient documentary evidences on import of subsidized
products and material injury, etc., are not submitted;

\(3\) In case the amount of subsidy or import quantity of the subsidized
products is below the criteria set by the Ordinance of the Minister of
Finance and Economy, or in case the material injury etc., is deemed to
be insignificant;

\(4\) In case the total production by domestic producers that expressed
consent to the application for an investigation does not satisfy the
criteria set by the Ordinance of the Minister of Finance and Economy;
and

\(5\) In case it becomes unnecessary to initiate an investigation, e.g.,
a measure has been taken prior to the initiation of an investigation to
eliminate any adverse effect on the domestic industry.

3\. When the Trade Commission has determined the initiation of an
investigation as referred to in Paragraph 1, it shall notify the person
requesting the investigation, the government of the exporting country
and the exporters of such a product and other interested parties of the
matters concerning the determination on the initiation of the
investigation and shall publish them in the official gazette, within ten
days after the determination.

**[Article 75 (Investigation on Import of Subsidized Products and
Material Injury, etc.]{.underline})**

1\. The Trade Commission takes charge of the investigation on the import
of subsidized products and material injury, etc., referred to in Article
57 of the Act. In this case, the Trade Commission may, if it is deemed
necessary, have public officials of related administrative agencies or
concerned experts participate in the investigation.

2\. The Trade Commission shall complete a preliminary investigation on
whether or not there are sufficient evidences to presume import of
subsidized products and a material injury, etc. caused thereby, and
shall submit a report on the results of this investigation to the
Minister of Finance and Economy within three months after matters
concerning the determination on the initiation of the investigation are
published in the official gazette as referred to in Article 74,
Paragraph 3.

3\. The Minister of Finance and Economy shall decide whether or not it
is required to take such measures as prescribed in Article 59, Paragraph
1 of the Act and shall decide on the issues concerning the contents
thereof within a month of the submission of a report on the results of a
preliminary investigation as referred to in Paragraph 2. However, if it
is deemed necessary, the period for such a decision may be extended for
a maximum of twenty days.

4\. In case the amount of subsidy or import quantity of subsidized
products is below the criteria set by the Ordinance of the Minister of
Finance and Economy or the material injury, etc., is deemed
insignificant after a preliminary investigation referred to in Paragraph
2, the Trade Commission shall terminate the final investigation referred
to in Paragraph 5.

5\. Unless there exist any special reasons prescribed by the Ordinance
of the Minister of Finance and Economy, the Trade Commission shall
initiate a final investigation one day after it's submission of a report
on the results of the preliminary investigation referred to in Paragraph
2, and shall submit a report of the results of the final investigation
to the Minister of Finance and Economy within three months of the day on
which the final investigation is initiated.

6\. If it is necessary to extend the investigation period in connection
with the investigations referred to in Paragraphs 2 and 5, or if an
interested party requests an extension of the investigation period for
justifiable reasons, then the Trade Commission may extend it for a
maximum of 2 months.

7\. Within a month of the submission of the report on the results of the
final investigation, as referred to in Paragraph 5, the Minister of
Finance and Economy shall determine whether or not the countervailing
duty is to be imposed, and shall determine the particulars thereof, and
shall take measures that impose the countervailing duty as prescribed in
Article 57 of the Act. However, if it is deemed necessary, the period
may be extended for a maximum of twenty days.

8\. The Minister of Finance and Economy shall take measures that impose
the countervailing duty, as referred to in Paragraph 7, within a year of
the publication date of the official gazette mentioned in Article 74,
Paragraph 3. However, if it is recognized that a special reason exists,
such measure may be taken within 18 months of the publication date of
the official gazette, notwithstanding the provisions of Articles 74,
Paragraph 1, and Article 75, Paragraph 2, and 5 to 7.

9\. If the Trade Commission considers it necessary, it may request to
the Minister of Finance and Economy to do the followings, when it
submits the results of the investigation as referred to in Paragraphs 2
and 5:

\(1\) to take provisional measures prescribed in Article 59, Paragraph 1
of the Act

\(2\) to impose countervailing duty prescribed in Article 57 of the Act

\(3\) to propose the undertakings prescribed in Article 60, Paragraph 1
of the Act

**[Article 76 (Withdrawal of the Application for Imposition of
Countervailing Duty]{.underline})**

1\. If the applicant for an investigation under Article 73, Paragraph 1
wishes to withdraw the application, he/she shall submit the intention in
writing to the Trade Commission. In this case, if the Trade Commission
receives such a withdrawal before it submits a report on the results of
the preliminary investigation prescribed in Article 75, Paragraph 2, it
may cease contemplating to determine whether or not to initiate an
investigation under Article 74, Paragraph 1 or terminate the
investigation prescribed in Article 75, Paragraph 2 after consulting
with the Minister of Finance and Economy and the head of the
administrative agency concerned, and if it receives such a withdrawal
after it submits a report on the results of the preliminary
investigation prescribed in Article 75, Paragraph 2, then it shall
notify the Minister of Finance and Economy.

2\. Upon receiving the notification referred to in Paragraph 1, the
Minister of Finance and Economy may have the investigations prescribed
in Article 75 terminated, and if any provisional measures have been
taken under Article 59, Paragraph 1 of the Act, withdraw the measures,
after consulting with the Trade Commission and the heads of the
administrative agencies concerned

3\. If the Minister of Finance and Economy withdraws any provisional
measures referred to in the latter part of Paragraph 2, he/she shall
refund the provisional countervailing duty paid, or release any security
provided pursuant to such a provisional measure.

**[Article 77 (Determination on Material Injury, etc.]{.underline})**

1\. In cases where the Trade Commission investigates and determines the
material injury, etc., as prescribed in Article 75, such investigation
and determination shall be based on the substantial evidence including
the followings:

\(1\) import quantity of the subsidized product (including whether or
not the importation of such a product has increased significantly in
absolute terms or in relative terms compared to the domestic production
or consumption of the product);

\(2\) price of the subsidized product (including whether or not such a
price has decreased significantly in comparison with the price of the
domestic like product);

\(3\) level of the amount of subsidy, etc. (including whether or not the
import price of a subsidized product has declined significantly in
comparison with the normal value in the exporting country);

\(4\) output, operating ratio, inventories, sales quantity, market
share, prices (including the effect of lowering prices or of suppressing
price increases), profits, productivity, return on investments, cash
flow, employment, wage, growth, capital supply, investment capacity, and
technology development of the domestic industry; and

\(5\) actual or potential impact of such matters as referred to in
sub-paragraphs (1) and (2) on the domestic industry.

2\. In case of an investigation and determination of a material injury,
etc., under Paragraph 1, a determination on the threat of material
injury, etc. shall be made on the basis of facts including the following
matters in addition to the matters referred to in sub-paragraphs of
Paragraph 1 and the injury caused by the subsidized product shall be
clearly foreseen and imminent;

\(1\) the characteristics of the subsidy, etc. in question and possible
effect on trade caused thereby;

\(2\) a significant rate of increase in subsidized products that
indicates a likelihood of a substantial increase in importation;

\(3\) a substantial increase in the production capacity indicating the
likelihood of substantial increase in export of the subsidized product
to Korea (taking into account the availability of other export markets
to absorb);

\(4\) whether or not the price of the subsidized product is likely to
decrease or to prevent the increase of the price of the like product and
the likelihood of an increase in the demand for more imports; and

\(5\) the inventory of the subsidized product and the inventory of the
like product.

3\. With regard to the investigation and determination of the material
injury, etc. under the provisions of Paragraph 1, the Trade Commission
may assess the injury cumulatively when products imported from more than
one country are simultaneously subject to investigation and when:

\(1\) the amount of subsidy, etc. and the quantity of import of the
subsidized product satisfy the criteria set by the Ordinance of the
Minister of Finance and Economy; and

\(2\) the subsidized products compete with each other and with the
domestic like product.

4\. The Trade Commission shall investigate factors which have caused
injuries to the domestic industry other than import of subsidized
product and shall not consider the industrial injury etc. caused by
these factors as caused by import of the subsidized product.

**[Article 78 (Request for Providing Data by Interested
Parties]{.underline})**

1\. If it is deemed necessary for the investigation under Article 58 of
the Act or for the determination on whether or not countervailing duty
is to be imposed, the Minister of Finance and Economy or the Trade
Commission may ask for the cooperation, such as provision of relevant
data, etc., to the relevant authorities, domestic producers, the
government of exporting country, exporting country or exporters,
importers, and interested parties. However, when asking questions to the
government of exporting country or exporters for an investigation on a
fact of granting subsidies, a period of 40 days or longer from the date
of the questions shall be given for submitting the answers. In case that
the government of exporting country or exporters request to extend the
period with reasons thereof, contemplation shall be made thereon.

2\. The Minister of Finance and Economy or the Trade Commission shall
not disclose materials provided under Paragraph 1 and Article 73,
Paragraph 4, for which confidential treatment is deemed to be proper
because of the nature of the material, or for which confidential
treatment is requested by the applicant for investigation or by the
interested parties for a justifiable reason, without the express consent
of the person who has provided the material.

3\. The Minister of Finance and Economy or the Trade Commission may
demand the person, who has provided confidential material under
Paragraph 2, to submit a non-confidential summary of such material. In
this case, if such a person is unable to submit such a summary, he/she
shall submit a document stating the reason thereof.

4\. In a case where a person who has provided material refuses to make
the material public although the request for a confidential treatment
under Paragraph 2 is deemed unwarranted or where he/she refuses to
submit the non-confidential summary referred to in Paragraph 3, without
a justifiable reason, the Minister of Finance and Economy or the Trade
Commission may disregard such material unless the accuracy of the
material has been sufficiently demonstrated.

5\. In conducting an investigation under Article 58 of the Act and
determining whether or not the countervailing duty is to be imposed, if
it is difficult to conduct the investigation or to verify the material
for the reason that an interested party does not provide related
material or refuses or impedes the investigation of the Trade
Commission, or for other reasons, the Minister of Finance and Economy or
the Trade Commission may decide whether to take a measure of imposing
countervailing duty on the basis of materials available.

6\. The Minister of Finance and Economy and the Trade Commission may not
use any information and material acquired, and facts obtained from the
interested parties in connection with the proceedings of imposition of
countervailing duty for other purposes.

7\. In a case where an interested party requests to read related
documentary evidence submitted under Article 73, Paragraph 4 and
material submitted or informed under Paragraphs 1 and Article 81 other
than those treated confidentially, the Minister of Finance and Economy
and the Trade Commission shall accept such a request, unless there is a
particular reason for denying the request. In this case, the request of
the interested parties for reading the material shall be made in
writing, stating the reasons thereof and a list of the material
requested.

8\. The Minister of Finance and Economy or the Trade Commission may give
the interested parties an opportunity to state their opinion through a
public hearing, etc., or to consult with other interested parties of
opposing interests if it is deemed necessary or there is a request of
any interested party.

**[Article 79 (Imposition of Countervailing Duty]{.underline})**

1\. The countervailing duty prescribed in Article 57 of the Act shall be
imposed by setting countervailing duty rates determined for each
exporter or exporting country. However, with respect to those exporters
on whom it is difficult to conduct an investigation or to verify
material for the reason that they fail to submit the material prescribed
in Article 78, or refuse to make the material public without a
justifiable reason, or for other reasons, the countervailing duty may be
imposed by setting a single rate.

2\. With respect to exporters not selected as the subject of an
investigation under Article 74, Paragraph 1, the countervailing duty
shall be imposed by setting a countervailing duty rate calculated by a
weighted average of countervailing duty rate for exporters selected for
the investigation as prescribed in the Ordinance of the Minister of
Finance and Economy. However, with respect to those who have submitted
the materials prescribed in Article 78 among the exporters who exported
during the period subject to the investigation but were not selected for
the investigation, the provision of Paragraph 1 shall be applied.

3\. In a case where the countervailing duty is imposed by designating
exporting countries under Article 57, Paragraph 1 of the Act, if a new
exporter of the exporting countries, who exports after the period
subject to investigation prescribed in Article 74, Paragraph 1, has a
special relationship prescribed by the Ordinance of the Minister of the
Finance and Economy with the exporter who is subject to the
countervailing duty by Paragraph 1, a countervailing duty shall be
imposed on the basis of the countervailing duty rate applied to the
exporter. However, if such a new exporter shows that he has not such
special relationship, the countervailing duty may be imposed by setting
separately a countervailing duty rate calculated through an
investigation. In this case, the method, procedure, etc., of the
investigation may be different from those applied to the persons who
were already subject to the investigation as prescribed by the Ordinance
of the Minister of Finance and Economy.

**[Article 80 (Application of Provisional Measures]{.underline})**

1\. The provisional measures prescribed in Article 59, Paragraph 1 of
the Act may be applied to a case where it is determined that there is
sufficient evidences to presume a fact of granting subsidies and
material injury, etc. thereby as a result of the preliminary
investigation prescribed in Article 75, Paragraph 2 and where at least
sixty days have passed since the initiation of that investigation.

2\. The application duration of the provisional measures prescribed in
Article 75, Paragraph 3 shall not exceed 4 months.

3\. The security provided under Article 59, Paragraph 1 of the Act shall
fall under any of Sub-paragraphs (1) to (4) of Article 24, Paragraph 1
of the Act and shall be equivalent to the amount of provisional
countervailing duty.

**[Article 81 (Undertakings to Cease or Reduce Subsidies and to Revise
the Price, etc.]{.underline})**

1\. If the government of exporting country or an exporter of the
product, for which an investigation has been initiated in order to
determine whether or not the countervailing duty is to be imposed,
wishes to propose the undertaking under Article 60, Paragraph 1 of the
Act, or wishes to request the continuation of the injury investigation
under Article 60, Paragraph 2 of the Act, he/she shall submit such a
request in writing to the Trade Commission before the Trade Commission
makes a final determination in accordance with the results of the final
investigation as referred to in Article 75, Paragraph 5. In this case,
the Trade Commission shall send the original documents submitted, to the
Minister of Finance and Economy immediately thereafter.

2\. If the undertaking proposed under Paragraph 1 falls in any of the
following Sub-Paragraphs, the Minister of Finance and Economy may accept
the undertaking. However, if it is deemed difficult to secure a
fulfilment of the undertaking as prescribed in the Ordinance of the
Minister of Finance and Economy, the Minister of Finance and Economy
does not need to accept such an undertaking.

\(1\) undertaking to revise the price immediately

\(2\) undertaking to cease granting subsidies or reduce subsidies within
6 months from the date of undertaking

\(3\) undertaking regarding proper measures to eliminate the effect of
injuries of the subsidy, etc. on the domestic industry within 6 months
from the date of undertaking

3\. The Minister of Finance and Economy, if it is deemed necessary, may
propose an undertaking prescribed in Article 60, Paragraph 1 of the Act,
by designating the government of exporting country or exporters.

4\. The Minister of Finance and Economy may not accept an undertaking
under Paragraph 2 or propose an undertaking under Paragraph 3 before a
determination is made that there are sufficient evidences presuming a
fact of granting subsidies and material injury, etc. caused thereby, as
a result of the preliminary investigation under Article 75, Paragraph 2.

5\. If the government of exporting country or exporters fails to fulfil
the undertakings accepted under Article 60, Paragraph 2 of the Act, the
Minister of Finance and Economy may take a prompt measure for imposing a
countervailing duty, such as provisional measures based on the best
information available.

6\. If it is ascertained, through a continuous investigation under the
provisio of Article 60, Paragraph 2 of the Act, that there exists no
material injury, etc., or that there exists no amount of subsidies,
etc., the Minister of Finance and Economy shall deem the effect of the
undertaking as nullified. However, if the non-existence of a material
injury, etc. or the non-existence of subsidies, etc. is deemed to have
been generated by the undertaking, the Minister of Finance and Economy
may have the undertaking continued for an adequately set period, and if
the exporter refuses to fulfil the undertaking, the Minister of Finance
and Economy may promptly take measures for imposition of a
countervailing duty, such as provisional measures based on the best
information available.

**[Article 82 (Retroactive Imposition of Countervailing
Duty]{.underline})**

1\. The products to which provisional measures have been applied under
the provisio of Article 61 of the Act and which are subject to
countervailing duty are as follows:

\(1\) A product imported during the period in which provisional measures
have been applied, in a case where a final determination of material
injury, etc. was made, or where, although a final determination of a
threat of material injury, etc. was made, it was deemed that a final
determination of material injury would have been made in the absence of
provisional measures;

\(2\) A product imported not more than ninety days prior to the date of
the application of provisional measures, in those cases where it is
necessary to retroactively impose the countervailing duty to prevent a
recurrence of a material injury, etc., caused by the massive importation
of a product in a relatively short period of time, and where the
subsidized products have been imported causing material injury, etc., in
the past or where the importer was or could have been aware of the fact
of import of subsidized product and material injury, etc., caused
thereby;

\(3\) A product imported not more than ninety days prior to the date of
the application of provisional measures in the case where it was
admitted that a material injury, etc., was caused by the importation of
a product to which provisional measures were applied because of the
violation of undertaking prescribed in Article 60, Paragraph 1 of the
Act. In this case, a product imported prior to the violation of an
undertaking is excluded; and

\(4\) Other products imported during such a period as determined by the
Minister of Finance and Economy under conditions prescribed by the
international agreement.

2\. Any interested parties in the domestic industry, prescribed in
Article 73, may request an imposition of the countervailing duty
prescribed in the proviso of Article 61 of the Act by submitting
evidence that the product concerned falls under any of the
Sub-paragraphs of Paragraph 1 within seven days of the receipt of final
determination according to the conclusion of final investigation
prescribed in Article 75, Paragraph 5.

**[Article 83 (Liquidation of Provisional Countervailing Duty Amount,
etc.]{.underline})**

1\. In a case that falls under Article 82, Paragraph 1 and when the
amount of the countervailing duty, which was imposed on a product
imported during the period in which provisional measures were applied
under Article 59, Paragraph 2 of the Act, is equal to or more than that
of the provisional countervailing duty, the amount of the countervailing
duty shall be the same as that of the provisional countervailing duty
and the difference shall not be charged, and when the countervailing
duty is lower than the provisional countervailing duty, the provisional
countervailing duty paid, equal to the amount of the difference, shall
be refunded.

2\. In a case where any security was provided under the provision of
Article 59, Paragraph 1 of the Act, and which falls under Article 82,
Paragraph 1, the amount of the countervailing duty to be imposed
retroactively during the period, in which the provisional measures were
applied, shall not exceed that of the provisional countervailing duty.

3\. In a case where the undertaking under the provision of Article 81,
Paragraph 1 is accepted after a determination that granting subsidies
and material injury, etc. thereby exist is made through the final
investigation under Article 75, Paragraph 5, if the final countervailing
duty rate is same or higher than the provisional countervailing duty
rate, the amount of the difference shall not be charged, and if the
former is lower than the latter, the provisional countervailing duty,
equal to the amount of the difference shall be refunded.

**[Article 84 (Review on the Countervailing Duty and
Undertaking]{.underline})**

1\. If it is deemed necessary, or if any interested party or the
competent Minister in charge of the industry concerned files a request
for a review along with documentary evidence showing a case which falls
under the following Sub-paragraphs, the Minister of Finance and Economy
shall determine whether or not the review prescribed in Article 62,
Paragraph 1 of the Act is to be conducted with respect to the product on
which the countervailing duty is imposed or for which an undertaking is
effective.

\(1\) where circumstances have changed substantially enough to modify
the countervailing duty or the undertaking after enforcement of those
measures;

\(2\) where there is a chance that an injury to the domestic industry is
caused by the termination of the countervailing duty or the undertaking;

\(3\) where the countervailing duty has been paid in excess of the
actual amount of subsidy, etc.

2\. A request for a review referred to in Paragraph 1 may be made after
a year has passed since the countervailing duty or the undertaking has
been put into force, and it shall be made before six months prior to
expiration of the countervailing duty or the undertaking. In this case,
the Minister of Finance and Economy shall determine whether or not a
review is necessary within 2 months of receiving the request for the
review.

3\. In addition to the review conducted under Paragraph 1, the Minister
of Finance and Economy may conduct a review on the appropriateness of
the rate of countervailing duty imposed or an undertaking in force, and
to this end he shall conduct an annual examination of the import price
of the subsidized product in connection with the contents of the
countervailing duty or the undertaking (including the contents changed
as a result of the review) in the month under which the date of the
enforcement thereof falls.

4\. In determining the necessity of a review under Paragraph 1 or 3, the
Minister of Finance and Economy may consult heads of related
administrative agencies and the Trade Commission, and when it is
determined that a review is necessary, the Trade Commission shall carry
out an investigation thereon. In this case, the Trade Commission may
conduct an investigation limited just to those parts that fall under the
reasons for conducting such a review.

5\. The Trade Commission shall finish an investigation prescribed in
Paragraph 4 and submit the results to the Minister of Finance and
Economy within six months of the initiation of a review. However, if it
is necessary to extend the investigation period or the interested
parties request an extension of the period by submitting justifiable
reasons, the Trade Commission may extend the investigation period to a
maximum of four months.

6\. In a case where the measures prescribed in Article 62, Paragraph 1
of the Act are necessary, the Minister of Finance and Economy shall take
measures within a month of receiving the results of the investigation
prescribed in Paragraph 5. However, if it is deemed necessary, such a
period may be extended to a maximum of 20 days.

7\. In a case where a review is conducted for reasons stated in
Sub-paragraph (2) of Paragraph 1, a countervailing duty measure shall
remain in force during the review period even though the effective
period of the measure expires during the review.

8\. If it is deemed that an undertaking has lost, or might lose its
effectiveness as a result of a review referred to in Paragraphs 1 or 3,
the Minister of Finance and Economy may demand that the government of
exporting country or an exporter carrying out such an undertaking revise
the undertaking and if the government of exporting country or the
exporter refuses to revise the undertaking, the Minister of Finance and
Economy may take the countervailing measure on the basis of the
information available.

9\. The Minister of Finance and Economy may order the Commissioner of
the Customs Service to investigate and report the matters prescribed by
the Ordinance of the Minister of Finance and Economy in order to conduct
a review under the provisions of Paragraph 1 or 3.

**[Article 85 (Notification to the Interested Parties and Public Notice,
etc.)]{.underline}**

1\. In the following cases, the Minister of Finance and Economy shall
publish the details thereof in the official gazette, and notify the
interested parties of the details in writing:

\(1\) where he has determined to take a measure prescribed in Article 57
and Article 59, Paragraph 1 of the Act or not to take such a measure;

\(2\) where he suspends or terminates an investigation by accepting an
undertaking prescribed in Article 60, Paragraph 1 of the Act, or
continues the investigation;

\(3\) where he initiates a review prescribed in Article 62, Paragraph 1
of the Act, or he modifies the contents of countervailing duty measures
as a result of such a review; and

\(4\) where the implementing period of countervailing duty measure is
extended under the provisions of Article 84, Paragraph 7

2\. In the following cases, the Minister of Finance and Economy or the
Trade Commission shall notify the interested parties of the details
thereof:

\(1\) where a request for an investigation is rejected under Article 74,
Paragraph 2, or the investigation is terminated under Article 75,
Paragraph 4;

\(2\) where the preliminary determination is made according to the
preliminary investigation prescribed in Article 75, Paragraph 2;

\(3\) where the final determination is made according to the final
investigation prescribed in Article 75, Paragraph 5.

\(4\) where the period of investigation is extended under Article 75,
Paragraph 6 and the proviso of Article 84, Paragraph 5;

\(5\) where the period is extended under Article 75, Paragraph 8;

\(6\) where the request for imposition of the countervailing duty is
withdrawn under Article 76, thereby suspending the determination to
initiate or terminating the investigation;

\(7\) where the application period of the provisional measure is
extended under Article 80, Paragraph 2 or 3; and

\(8\) where the Minister of Finance and Economy proposes undertakings
under Article 81, Paragraph 3.

3\. When there is a written request made by the interested parties with
regard to the investigation prescribed in Article 75, in the course of
the investigation, the Minister of Finance and Economy or the Trade
Commission shall notify them of the details of the investigation in
progress.

**ENFORCEMENT REGULATION OF THE CUSTOMS ACT**

**(Ordinance of the Minister of Finance and Economy)**

**[Article 21 (Scope of Subsidies, etc.]{.underline})**

1\. The term \"subsidies or bounties as prescribed by the Minister of
Finance and Economy\" in the proviso of Article 72, Paragraph 1 of the
Decree means subsidies or bounties (hereinafter referred to as
"subsidies, etc.") with regard to research, regional development, and
environment as recognized in the international agreement even though
they have specificity as prescribed in Article 72, Paragraph 2 of the
Decree.

2\. It is deemed that there exists specificity as prescribed in
Article 72, Paragraph 2 of the Decree in any of the following cases:

\(1\) where subsidies, etc., are granted to certain enterprises
restrictedly;

\(2\) where subsidies, etc., are used by a limited number of
enterprises;

\(3\) where subsidies, etc., are granted restrictedly to specific areas;
and

\(4\) where the criteria of specificity recognized by the international
agreements are satisfied.

3\. In calculating the amount of subsidies, etc., as prescribed in
Article 72, Paragraph 3 of the Decree, the following criteria shall
apply:

\(1\) in the case of equity participation: amount equivalent to the
difference between such equity participation and an ordinary investment

\(2\) in the case of a loan: amount equivalent to the difference between
the amount paid according to the interest rate of such a loan and the
amount paid according to the market interest rate

\(3\) in the case of a loan guarantee: amount equivalent to the
difference between the amount paid on such a loan and the amount payable
on comparable commercial loans without such loan guarantees

\(4\) in the case of provision or purchase of goods and services: amount
equivalent to the difference between such a price and market price

\(5\) amount according to a standard provided in the international
agreements

**[Article 22 (Requests for Imposition of Countervailing
Duty)]{.underline}**

1\. The term \"like product\", as used in Article 73, Paragraph 2 of the
Decree means a product that is identical in all respects, including
physical characteristics, quality, recognition by the users, etc.,
(including products altered insignificantly in appearance), or in the
absence of such a product, that which has the function, characteristics
and constituent parts that closely resemble such an imported product.

2\. The term \"a producer who is an importer of the imported product as
prescribed by the Ordinance of the Minister of Finance and Economy\", as
used in Article 73, Paragraph 2 of the Decree, means a producer who
imports the imported product, but the term excludes:

\(1\) a producer who imported the subsidized product six months prior to
the date of receipt of the application as prescribed in Article 73,
Paragraph 4 of the Decree; and

\(2\) a producer whose import quantity of the subsidized product is
insignificant.

3\. In determining producers who have special relationship under Article
73, Paragraph 2 of the Decree, if a producer of the like product of the
imported product sells the product at a price and with conditions that
are the same with, or similar to the price and conditions of the product
sold by the person who does not have special relationship as prescribed
in Article 23, Paragraph 1 of the Decree, such a producer may be
excluded from being defined as a producer who has special relationship.

4\. The term \"the person prescribed by the Ordinance of the Minister of
Finance and Economy\", as used in Article 73, Paragraph 3 of the Decree,
means an association, union, etc., composed of domestic producers.

**[Article 23 (Initiation of Investigation on Import of Subsidized
Products and Material Injury, etc.)]{.underline}**

1\. In selecting the products and the government of exporting country or
exporters subject to investigation, as prescribed in Sub-paragraphs (1)
and (3) of Article 74, Paragraph 1 of the Decree, the sampling method
that is statistically valid on the basis of available material
(including the method to select the number of governments of exporting
countries, exporters or products in the order of the percentage of
import volume) shall be used in principle.

2\. The term \"the criteria set by the Ordinance of the Minister of
Finance and Economy\", as used in Sub-paragraph (3) of Articles 74,
Paragraphs 2 of the Decree, means the case where the amount of
subsidies, etc. is no less then 1 per cent of the price of the product
concerned, unless international agreements prescribe otherwise.

3\. The term \"the case where the total production of domestic producers
does not satisfy the criteria set by the Ordinance of the Minister of
Finance and Economy", as used in Sub-paragraph (4) of Article 74,
Paragraph 2 of the Decree, means any of the following sub-paragraphs:

\(1\) where the collective production of the like product produced by
domestic producers having expressed support for the request for
imposition under Article 73, Paragraph 1 of the Decree is not more than
50 per cent of the total production of such products produced by the
domestic producers having expressed either support or opposition;

\(2\) where the collective production of domestic producers having
expressed support for the request for imposition under Article 73,
Paragraph 1 of the Decree is less than 25 per cent of the total domestic
production of the like product.

**[Article 24 (Termination of Final Investigation for Imposition of
Countervailing Duty)]{.underline}**

The term \"the criteria set by the Ordinance of the Minister of Finance
and Economy", as used in Article 75, Paragraph 4 of the Decree, shall
mean the case where the amount of subsidies, etc. is no less than 1 per
cent of the price of the products concerned unless international
agreements prescribed otherwise.

**[Article 25 (Withdrawal of the Application for Investigation on
Imposition of Countervailing Duty)]{.underline}**

1\. A person who wishes to withdraw the application for investigation
under Article 76, Paragraph 1 of the Decree, shall submit an application
of withdrawal stating the reasons thereof and the related materials to
the Trade Commission.

2\. In cases where the application of withdrawal was made during the
period of preliminary or final investigation prescribed in Article 75,
Paragraph 2 or 5 of the Decree, and where the alleged reasons for
withdrawal are deemed improper, the Minister of Finance and Economy or
the Trade Commission may defer the determination on whether or not the
investigation will be terminated by the application of withdrawal, to
the time of conclusion of the preliminary or final investigation.

**[Article 26 (Calculation of Injuries for Imposition of Countervailing
Duty)]{.underline}**

The term "the criteria set by the Ordinance of the Minister of Finance
and Economy" in Sub-paragraph (1) of Article 77, Paragraph 3 of the
Decree means the case where the amount of subsidies, etc. is no less
than 1 per cent of the price of the product concerned unless the
international agreements prescribe otherwise.

**[Article 27 (Confidential Treatment of Materials Relating to
Countervailing Duty Measures)]{.underline}**

Materials subject to confidential treatment under Article 78, Paragraph
2 of the Decree shall be the ones relating to any of the following
matters, the disclosure of which might cause damage to the interest of
the providers or the interested parties:

\(1\) cost of production;

\(2\) accounting materials which have not been made public;

\(3\) name, address and trade volume of the trade partners;

4\) matters concerning the provider of confidential information; and

\(5\) other materials deemed proper to be treated confidentially.

**[Article 28 (Public Hearing for Imposition of countervailing
Duty)]{.underline}**

The provisions in Article 16 shall be applied with regard to the public
hearing prescribed in Article 78, Paragraph 8 of the Decree.

**[Article 16 (Public Hearing for Imposition of Anti-Dumping
Duty)]{.underline}**

1\. When the Trade Commission holds a public hearing under Article 64,
Paragraph 8 of the Decree, it shall notify the Minister of Finance and
Economy of the schedule and results thereof.

2\. When the Minister of Finance and Economy wants to hold a public
hearing, the applicants and interested parties shall be notified
individually of the time and places for it, and public notice shall be
given by way of appropriate methods including publication in the
official gazette, etc. at least 30 days prior to the date of the
hearing. However, in cases of urgent matters and investigation schedule
requirements, notice in 7 days prior to the date may be given. or the
Trade Commission

3\. A person who wishes to participate in the public hearing shall make
such an application to the Minister of Finance and Economy or the Trade
Commission at least 7 days prior to the date of the hearing with
information attached including evidences that show the identity of the
applicant or the interested party, summary of statements to be made,
related evidential materials, personal information on the representing
speaker, etc.

4\. The applicant or the interested party may make his own statement in
the presence of his representative or have the representative speak on
behalf of him.

5\. The participant in the public hearing may submit to the Minister of
Finance and Economy and the Trade Commission within 7 days of the
hearing written materials supplementing his statement made in the
hearing.

6\. The applicant or the interested party shall use Korean when making
statement in the public hearing.

7\. When the participating person is a foreigner, he may bring a
interpreter with him. In that case, the statement made by the
interpreter is deemed to be made by the foreign participant.

**[Article 29 ( Calculation of the Amount of Subsidies,
etc.)]{.underline}**

1\. When imposing countervailing duty under Article 57 of the Act, the
countervailing duty shall be calculated by multiplying the rate
determined within the subsidy rate calculated according to the following
formula by customs value.

Subsidy rate= [amount of subsidies, etc.]{.underline} 100

customs value

2\. In calculating the weighted average countervailing duty rate under
Article 79, Paragraph 2 of the Decree, if there are many exporters who
receive subsidies, etc., the weight may differ according to the export
volume of exporters. In that case, exporters whose amount of subsides,
etc. is less than 1 per cent of the customs value, may be excluded from
the calculation of countervailing duty rate.

3\. The Minister of Finance and Economy shall promptly conduct the
investigation under the Article 75 of the Decree against the new
exporters as prescribed in the provisio of Article 79, Paragraph 3 of
the Decree. In this case, the investigation on material injury, etc.,
may be substituted by an investigation of material injury, etc., against
the supplying country under Article 79, Paragraph 3 of the Decree.

**[Article 30 (Undertakings to Revise the Price, etc.)]{.underline}**

1\. Where an exporter proposes undertakings to the Minister of Finance
and Economy pursuant to Article 81, Paragraph 1 of the Decree, such
undertakings shall include the following items:

\(1\) the intention that the exporter will increase the export price to
a level which may eliminate material injury, etc.

\(2\) information on the products which are contracted or shipped prior
to the acceptance of the undertaking;

\(3\) the intention that the exporter will not take any action to evade
the compliance of the undertaking through a change in type, shape, name,
etc., or through a sale of inferior products, etc.,

\(4\) the intention that the exporter will not in fact violate the
undertaking by a sale through a third country or a third party, etc.;

\(5\) the intention that the exporter will periodically report to the
Minister of Finance and Economy with regard to the sales volume and
price in the exporting country and export volume and price for the
exports to Korea;

\(6\) the intention that a verification of the related materials will be
allowed; and

\(7\) the intention to consult again upon a demand by the Minister of
Finance and Economy in the event of other changes in the circumstances.

2\. Before accepting undertakings under Article 81, paragraph 2 of the
Decree, the Minister of Finance and Economy may ask for opinions of the
Trade Commission, the head of the administrative agency concerned and
the interested parties.

3\. The Minister of Finance and Economy may refuse to accept an
undertaking pursuant to the provisio of Article 81, Paragraph 2 of the
Decree in any of the following cases:

\(1\) where a person who proposes an undertaking on behalf of a number
of exporters fails to prove that an entire agreement among such
exporters has been reached;

\(2\) where there exists a condition which makes an appropriate
confirmation or investigation on the compliance of such undertakings
difficult;

\(3\) where there exists reasonable grounds to refuse to accept the
undertaking, such as a history of violation of undertakings in the past,
etc.

4\. The exporter who has received the proposal of undertakings from the
Minister of Finance and Economy as prescribed in Article 81, Paragraph 3
of the Decree shall notify whether or not such a proposal is accepted,
within one month.

**[Article 31 (Review on Countervailing Duty and Undertakings,
etc)]{.underline}**

1\. Interested parties that are entitled to propose a review under
Article 84, Paragraph 1 of the Decree are as follows:

\(1\) domestic producers of the like product or their organizations;

\(2\) the government of exporting country, or exporters and importers of
the product subject to countervailing duty measures or their
organizations; and

\(3\) other persons who the Minister of Finance and Economy recognizes
as having an interest.

2\. The term \"the matters prescribed by the Ordinance of the Minister
of Finance and Economy", as used in Article 84, Paragraph 9 of the
Decree, means any of the following sub-paragraphs:

\(1\) record on import of products subject to countervailing duty
measure and collection of countervailing duty

\(2\) compliance of undertakings by those who made such undertakings

\(3\) other matters required in reviewing on countervailing duty
measures.

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