+--------------------------------------------------+-------------------+
| **[World Trade]{.smallcaps}**                    |                   |
|                                                  |                   |
| **[Organization]{.smallcaps}**                   |                   |
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|                                                  |                   |
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|                                                  | *                 |
|                                                  | *G/ADP/N/1/TUR/3\ |
|                                                  | G/SCM/N/1/TUR/3** |
|                                                  |                   |
|                                                  | 17 April 2000     |
+--------------------------------------------------+-------------------+
|                                                  | (00-1541)         |
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|                                                  |                   |
+--------------------------------------------------+-------------------+
| **Committee on Anti-Dumping Practices**          | Original: English |
|                                                  |                   |
| **Committee on Subsidies and Countervailing      |                   |
| Measures**                                       |                   |
+--------------------------------------------------+-------------------+

NOTIFICATION OF LAWS AND REGULATIONS

UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS

turkey

The following communication, dated 3 March 2000, has been received from
the Permanent Mission of Turkey.

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

I would like to inform you that the legislation concerning the
prevention of unfair legislation has been amended in conformity with the
relevant WTO Agreements and also the customs union obligations.
Accordingly, please find attached herewith:

\- Law No. 3577 on the Prevention of Unfair Competition in Imports as
amended by Law 4412 which entered into force on 27 May 1999;

\- Decree on the Prevention of Unfair Competition in Imports (No. 23861)
published in the Official Gazette dated 20 October 1999; and

\- The relevant regulation (No. 23861) published in the Official Gazette
dated 30 October 1999.

[TABLE OF CONTENTS]{.underline}

[Page]{.underline}

**LAW NO. 3577 ON THE PREVENTION OF UNFAIR COMPETITION IN IMPORTS 4**

**Aim and Scope 4**

**Definitions 4**

**Circumstances warranting imposition of measures 5**

**Complaint and examination 5**

**Duties of the Directorate General 5**

**The Board of Evaluation of Unfair Competition in Imports and its
duties 6**

**Anti-dumping duty and countervailing duty 6**

**Payer 6**

**Collection authority 7**

**Investigation 7**

**Undertakings 7**

**Provisional measures 7**

**Definitive measures 7**

**Refunds 8**

**Other legislation 8**

**Repealed and not applicable provisions 8**

**Decrees of the Council of Ministers and Regulations 9**

**Entry into force 9**

**Implementation 9**

**Termination and suspension of the investigation 9**

**Review of definitive measures and undertakings 9**

**DECREE ON THE PREVENTION OF UNFAIR COMPETITION IN IMPORTS 10**

**Aim and Scope 10**

**Definitions 10**

**Complaint, examination and the investigation 11**

**Circumstances warranting imposition of measures 11**

**Principles on the application of provisional and definitive measures
12**

**Principles on retroactivity 12**

**Duration and review of definitive measures and undertakings 13**

**New exporter review 13**

**Suspension of definitive measures 13**

**Refund of excessive duties 14**

**Prevention of circumvention 14**

**Repealed decree 14**

**Entry into force 15**

**Implementation 15**

**REGULATION ON THE PREVENTION OF UNFAIR COMPETITION IN IMPORTS 16**

**PART ONE 16**

**PART TWO -- DETERMINATION OF DUMPING 18**

SECTION ONE -- NORMAL VALUE 18

SECTION TWO -- EXPORT PRICE 20

SECTION THREE -- COMPARISON AND DUMPING MARGIN 20

**PART THREE -- DETERMINATION OF SUBSIDY 21**

**PART FOUR -- DETERMINATION OF INJURY 22**

**PART FIVE -- COMPLAINT, EXAMINATION AND PROCEDURE AND**

**PRINCIPLES OF THE INVESTIGATION 24**

SECTION ONE -- COMPLAINT AND EXAMINATION 24

SECTION TWO -- THE INVESTIGATION 26

**PART SIX -- UNDERTAKINGS 30**

**PART SEVEN -- REVIEW INVESTIGATIONS, REFUND INVESTIGATIONS**

**AND OTHER INVESTIGATIONS 31**

SECTION ONE -- REVIEW INVESTIGATIONS 31

SECTION TWO -- REFUND INVESTIGATION 32

SECTION THREE -- OTHER INVESTIGATIONS 33

SECTION FOUR -- GENERAL PROVISIONS 34

**PART EIGHT -- BOARD OF EVALUATION OF UNFAIR COMPETITION**

**IN IMPORTS 34**

**PART NINE -- FINAL PROVISIONS 35**

**LAW NO.3577 ON THE**

**PREVENTION OF UNFAIR COMPETITION IN IMPORTS**

*(As amended by Law No.4412, Official Gazette Date:25/07/1999,
No:23766)*

**Aim and scope**

**Article 1-** This Law sets forth the rules and principles as regards
the procedures to be applied and measures to be taken for purposes of
protecting a domestic industry against injury caused by unfair
competition practices in imports namely, dumped or subsidised imports;
formation of a Board that will establish principles and application
decisions, and duties of such Board.

**Definitions**

**Article 2-** Following are the definitions of the terms used in this
law:

\(a\) Dumping: Export price of a product to Turkey being less than the
normal value for the like product;

\(b\) Subsidy: A direct or indirect financial contribution by the
country of origin or export, which confers a benefit or any form of
income or price support within the meaning of Article XVI of GATT 1994;

\(c\) Export Price: The price actually paid or payable for the product
when sold for export;

\(d\) Like Product: A product which is alike in all respects to the
product which is dumped or subsidised, or in the absence of such a
product, another product with similar characteristics;

\(e\) Normal Value:

\(1\) The comparable price paid or payable, in the ordinary course of
trade, for the like product when destined for consumption in the country
of origin or export;

\(2\) When there are no sales of the like product in the domestic market
of the country of origin or export in the ordinary course of trade, or
where such sales do not permit a proper comparison, the normal value
shall be the export price of the like product when exported to an
appropriate third country, provided that this price is representative or
the price calculated on the basis of the cost of production in the
country of origin plus a reasonable amount for profit;

\(f\) Regulation: Regulation on the Prevention of Unfair Competition in
Imports;

\(g\) Dumping Margin: The amount by which the normal value exceeds the
export price;

\(h\) Amount of Subsidy: Direct or indirect financial contribution
maintained by the country of origin or export for manufacture,
production, export or transportation of the product sold for export, or
total amount of benefits in any form of income or price support in the
sense of Article XVI of GATT 1994;

\(i\) Injury: Material injury or threat of material injury to a domestic
industry or material retardation of the establishment of such an
industry;

\(j\) Ministry: The Ministry to which the Undersecretariat for Foreign
Trade is attached;

\(k\) Directorate General: Directorate General of Imports;

\(l\) Board: Board of Evaluation of Unfair Competition in Imports;

\(m\) GATT 1994: General Agreement on Tariffs and Trade 1994;

\(n\) Agreement on Subsidies and Countervailing Measures: Agreement at
the Annex-1 to the Agreement Establishing the World Trade Organisation,
approved by the Law dated 26/1/1995 and No.4067 and ratified by Decision
of Council of Ministers dated 3/2/1995 and No.95/6525,

\(o\) Agreement on Implementation of Article VI of GATT 1994: Agreement
in the Annex-1 to the Agreement Establishing the World Trade
Organisation, approved by the Law dated 26/1/1995 and No.4067 and
ratified by the Decision of Council of Ministers dated 3/2/1995 and
No.95/6525.

**Circumstances warranting imposition of measures**

**Article 3-** Measures shall be taken in cases where dumped or
subsidised imports have caused material injury or threatened to cause
material injury to the domestic industry or caused material retardation
of an industry.

However, in order that measures be taken in respect of subsidised
imports, it should also have been determined that the subsidy is
specific to an enterprise/group of enterprises or industry/group of
industries as defined in Article 2 of the Agreement on Subsidies and
Countervailing Measures.

**Complaint and examination**

**Article 4-** The Directorate General may, upon complaint or, where
necessary, *ex officio*, initiate a dumping or subsidy examination.
Domestic producers or any natural or legal person or association acting
on behalf of a domestic industry, who claim that material injury or
threat thereof has occurred by reason of dumped or subsidised imports or
that the establishment of an industry has been materially retarded due
to such imports, may submit a written application to the Directorate
General.

Procedures and principles as regards the complaint and the examination
shall be set out in the regulation to be issued by the Ministry.

**Duties of the Directorate General**

**Article 5-** Duties of the General Directorate under this Law are as
follows:

\(a\) To carry out the preliminary examination in the light of the
information and documents submitted or other information available, upon
complaint or *ex officio* where necessary;

\(b\) To submit its proposal to the Board on whether or not to initiate
an investigation;

\(c\) Where an investigation is initiated, to carry out such
investigation and make proposals to the Board concerning the measures;

\(d\) To act as the secretariat of the Board and to dispose of other
duties to be assigned by the Board.

**The Board of Evaluation of Unfair Competition in Imports and its
duties**

**Article 6-** The Board, headed by the Director General of Imports or
the Deputy Director General assigned by the latter, consists of the
representatives of the Ministry of Agriculture and Rural Affairs,
Ministry of Industry and Commerce, the Under-secretariat of the State
Planning Organisation, Under-secretariat of Customs, Union of Chambers
of Commerce and Industry and Union of Chambers of Agriculture and the
related head of department in the Directorate General of Imports.

The Board may request information from the universities and other
institutions, where necessary.

The duties of the Board are as follows:

\(a\) To decide whether or not to initiate an investigation or whether
to suspend an ongoing investigation;

\(b\) Where sufficient evidence exists, to submit its decision on the
adoption of provisional measures, to the Ministry for approval;

\(c\) To evaluate the results of the investigation, to take necessary
measures and to submit the decision for definitive measures to the
Ministry for approval;

\(d\) To propose undertakings in the course of an investigation, to
decide whether or not to accept an undertaking proposed and to take
relevant measures where undertakings have been violated.

The working procedures and principles of the Board shall be set out in
the regulation to be issued by the Ministry.

**Anti-dumping duty and countervailing duty**

**Article 7-** An amount equal to the margin of dumping or the amount of
subsidy, specified by the Board and approved by the Ministry consequent
to the investigation, shall be imposed on dumped imports as anti-dumping
duty and on subsidised imports as countervailing duty, respectively.
However, where it is determined that a rate or amount of duty lesser
than the calculated dumping margin or amount of subsidy would be
adequate to remove the injury caused by dumped or subsidised imports,
such lesser rate or amount shall be imposed.

The principles on the retroactive application of such duties for
products imported earlier, shall be determined by the Decree of the
Council of Ministers. However, the period for retroactive application
shall not exceed 90 days prior to the date of imposition of provisional
measures.

**Payer**

**Article 8-** The payer of anti-dumping duty or countervailing duty is
any natural or legal person importing the dumped or subsidised product.

**Collection authority**

**Article 9-** Anti-dumping duties or countervailing duties shall be
collected or secured by the customs authorities, independent of other
charges ordinarily imposed on imports.

**Investigation**

**Article 10-** An investigation shall be initiated, where consequent to
an examination initiated either *ex officio* or upon complaint, it is
determined that sufficient evidence on dumped or subsidised imports and
injury resulting thereof exist.

The procedures and principles of the investigation shall be set out in
the regulation to be issued by the Ministry.

**Undertakings**

**Article 11-** The country of origin, country of export or the exporter
may, in the course of the investigation, offer undertakings on their own
initiative or upon proposal by the Board, as to eliminate the injury
caused by dumped or subsidised imports subject to investigation. Upon
acceptance of undertakings by the Board, the investigation may be
suspended without imposition of provisional or definitive measures or
concluded. The conclusion investigation shall not prevent the collection
of provisional duties imposed prior to the entry into force of the
undertakings.

In the case of breach of undertakings, the Board may impose provisional
or definitive measures based on the facts available. The procedures and
principles as regards undertakings shall be set out in the regulation to
be issued by the Ministry whereas the validity and review principles of
the undertakings shall be set out in the Decree of the Council of
Ministers.

**Provisional measures**

**Article 12-** Where, in the course of the investigation on imports
subject to complaint, preliminary affirmative determinations have been
made as regards dumped or subsidised imports and injury caused by such
imports, the imposition of provisional duties in the form of security at
an amount equal to the margin of dumping or the amount of subsidy as
specified by the Board or at a lesser rate or amount adequate to remove
the injury may be decided, for purposes of preventing injury during the
investigation, upon the approval of the Ministry. Such a decision shall
be announced to the interested parties by way of publication in the
Official Gazette. Provisional measures shall be imposed no earlier than
60 days from the initiation of the investigation. The duration of
provisional measures shall be limited to 4 months. However, it may be
extended to a period not exceeding 6 months by the decision of the Board
and approval of the Ministry, upon request by exporters representing a
significant percentage of the exports of the product concerned to
Turkey. In the course of a dumping investigation, to examine whether a
duty lower than the margin of dumping would be sufficient to remove the
injury, these periods may be applied as 6 and 9 months. The application
principles of provisional measures shall be set out in the Decree of the
Council of Ministers.

**Definitive measures**

**Article 13-** Where, as a result of the investigation an affirmative
determination has been made as regards dumped or subsidised imports and
injury caused thereby, a definitive anti-dumping duty or countervailing
duty at an amount equal to the dumping margin or the amount of subsidy
as specified by the Board and finalised by the approval of the Ministry,
or at a lesser amount or rate adequate to remove the injury, shall be
imposed to prevent injury being caused. In the case where any security
deposit has been made, the provisions of Article 14 shall apply.
However, when the decision for definitive measures has been taken as
regards the threat of injury or material retardation of a domestic
industry, in order that the security deposit made during the
investigation be collected, the Board shall determine that injury would
occur but for the imposition of provisional measures. Where no such
determination has been made, any security deposit made during the period
of investigation as provisional measures shall be refunded. The
procedures and principles on the process to be applied as regards the
duration, application, suspension, review, refund and the circumvention
of the anti-dumping or countervailing duty in force, shall be set out in
the Decree of the Council of Ministers. Anti-dumping and countervailing
duties shall not be applied together for the purpose of counteracting
the same situation where the product subject to investigation is both
dumped and subsidised.

The imposition of anti-dumping or countervailing duty shall not hinder
the importation of the product concerned.

**Refunds**

**Article 14-** If the definitive anti-dumping duty is higher than the
security deposits made, the difference shall not be collected. If the
definitive duty is lower than the security deposit made, the difference
shall be released.

Where it has been decided to terminate the investigation, the
provisional duties shall be revoked and any security deposit made shall
be released.

The anti-dumping duty or countervailing duty previously collected for
the product to be returned or destroyed due to the violation of a sales
contract, shall be refunded in accordance with the provisions of the
customs legislation on the reimbursement of the customs duties.

**Other legislation**

**Article 15-** The provisions of the customs legislation, procedural or
substantive, as regards the registration, assessment, collection,
reimbursement, pursuance and assurance of customs duty shall also be
applicable for the registration, assessment, collection, reimbursement,
pursuance and assurance of anti-dumping and countervailing duties,
unless in contradiction with this Law.

The anti-dumping duty or countervailing duty not paid shall be collected
by the customs authorities in accordance with the provisions of the Law
No. 6183 on the Procedure of the Collection of Public Claims.

The provisions of the Agreement on Implementation of Article VI of GATT
1994 and Agreement on Subsidies and Countervailing Measures shall be
followed in cases where this Law does not contain any relevant
provision.

**Repealed and not applicable provisions**

**Article 16-** Article 21 of the Customs Code No. 1615 is hereby
repealed.

In the implementation of this Law, the provisions of the Customs Code
and other laws shall not be applicable if in conflict with this Law.

**Decrees of the Council of Ministers and Regulations**

**Article 17-**

\(a\) The Decree of the Council of Ministers envisaged in Articles 7,
12, 13 and,

\(b\) Regulations mentioned in Articles 4, 6, 10 and 11.

shall be issued within 3 months following the publication of this Law.

**Entry into force**

**Article 18-** This Law shall enter into force within 3 months
following its publication.

**Implementation**

**Article 19-** The provisions of this Law shall be implemented by the
Council of Ministers.

**Termination and suspension of the investigation**

**Addendum 1-** The investigation shall be terminated by the Board,
where consequent to the investigation it is determined that the imports
subject to investigation are not dumped or subsidised or that there is
no injury caused by such imports or where the complaint has become
futile. The investigation for dumping or subsidy shall also be
terminated if it is determined that the margin of dumping or amount of
subsidy or volume of imports is negligible. The negligible rates as
regards the margin of dumping or amount of subsidy or volume of imports
shall be established by the regulation. The Board may also decide to
terminate the investigation, where the complaint is withdrawn. The
investigation may be suspended upon acceptance of undertakings. The
investigation may either be terminated or suspended if the provision of
subsidies has ceased.

**Review of definitive measures and undertakings**

**Addendum 2-** The decision for definitive measures and undertakings
may be reviewed at the request of one of the interested parties or *ex
officio*. Where a review decision has been made by the Board, a new
investigation shall be initiated and carried out. However, initiation of
a new investigation shall not hinder the application of the definitive
duties and undertakings in force. The decision whether to impose
definitive measures and undertakings consequent to the investigation
shall rest with the Board. The decision for the definitive measure may
also be reviewed at the request of the producer or exporters which have
not exported the product concerned during the period of investigation.
Until the entry into force of the decision concerning the result of the
investigation initiated upon such a request, definitive measures in
force shall be subject to security deposit for the product subject to
investigation exported by the producer or exporter who filed the
request. As regards the security deposits made, relevant provisions of
the Article 14 shall be followed consequent to the investigation.

**DECREE ON THE**

**PREVENTION OF UNFAIR COMPETITION IN IMPORTS**

*(Official Gazette Date:30/10/1999, No:23861)*

**Aim and Scope**

**Article 1-** This Decree sets forth procedures to be applied and
measures to be taken for purposes of protecting a domestic industry
against the injury caused by unfair competition practices in imports
namely, dumped or subsidised imports.

**Definitions**

**Article 2-** Following are the definitions of the terms used in this
Decree:

\(a\) Dumping: Export price of a product to Turkey being less than the
normal value for the like product;

\(b\) Subsidy: A direct or indirect financial contribution by the
country of origin or export, which confers a benefit or any form of
income or price support within the meaning of Article XVI of GATT 1994;

\(c\) Export Price: The price actually paid or payable for the product
when sold for export;

\(d\) Like Product: A product which is alike in all respects to the
product which is dumped or subsidised, or in the absence of such a
product, another product with similar characteristics;

\(e\) Normal Value:

\(1\) The comparable price paid or payable, in the ordinary course of
trade, for the like product when destined for consumption in the country
of origin or export;

\(2\) When there are no sales of the like product in the domestic market
of the country of origin or export in the ordinary course of trade, or
where such sales do not permit a proper comparison, the normal value
shall be the export price of the like product when exported to an
appropriate third country, provided that this price is representative or
the price calculated on the basis of the cost of production in the
country of origin plus a reasonable amount for profit;

\(f\) Dumping Margin: The amount by which the normal value exceeds the
export price;

\(g\) Amount of Subsidy: Direct or indirect financial contribution
maintained by the country of origin or export for manufacture,
production, export or transportation of the product sold for export, or
total amount of benefits in any form of income or price support in the
sense of Article XVI of GATT 1994;

\(h\) Injury: Material injury or threat of material injury to a domestic
industry or material retardation of the establishment of such an
industry;

\(i\) Circumvention:

\(1\) Cases where there is evidence that, a change in the pattern of
trade between a third country and Turkey, stemming from a practice,
process or work for which there is insufficient due cause or economic
justification other than to avoid the anti-dumping duty or
countervailing duty, existed and that the remedial effects of the duty
are being undermined or nullified in terms of the prices and/or
quantities of the like products and there is evidence of dumping or
continuance of subsidy in relation to the normal values previously
established for the like products;

\(2\) Cases where, there is evidence that, due to the lowering of export
prices, the expected effects of the anti-dumping duty on selling prices
of the imported products subject to measures in the Turkish market are
being undermined or nullified and thus the remedial effects of the duty
in terms of removal of injury to the domestic industry are being
weakened;

\(j\) Ministry: The Ministry to which the Undersecretariat for Foreign
Trade is attached;

\(k\) Directorate General: Directorate General of Imports;

\(l\) Board: Board of Evaluation of Unfair Competition in Imports;

\(m\) GATT 1994: General Agreement on Tariffs and Trade 1994;

\(n\) Agreement on Subsidies and Countervailing Measures: Agreement at
the Annex-1 to the Agreement Establishing the World Trade Organisation,
approved by the Law dated 26/1/1995 and No.4067 and ratified by Decision
of Council of Ministers dated 3/2/1995 and No.95/6525;

\(o\) Regulation: Regulation on the Prevention of Unfair Competition in
Imports.

**Complaint, examination and the investigation**

**Article 3-** The Directorate General may, upon complaint or, where
necessary, *ex officio*, initiate a dumping or subsidy examination.
Domestic producers or any natural or legal person or association acting
on behalf of a domestic industry, who claim that material injury or
threat thereof has occurred by reason of dumped or subsidized imports or
that the establishment of an industry has been materially retarded due
to such imports, may submit a written application to the Directorate
General.

An investigation shall be initiated where, consequent to an examination
initiated either *ex-officio* or upon complaint it is determined that
sufficient evidence on dumped or subsidised imports and injury resulting
therefrom exist.

The procedures and principles as regards complaint, examination and
investigation shall be set out in the regulation.

**Circumstances warranting imposition of measures and measures**

**Article 4-** Measures shall be taken in cases where dumped or
subsidized imports have caused material injury or threatened to cause
material injury to the domestic industry or caused material retardation
of an industry.

Where, in the course of the investigation on imports subjected to
complaint, provisional affirmative determinations on the existence of
dumped or subsidised imports and the injury caused by such imports have
been made, a provisional duty in the form of security equal to the
margin of dumping or amount of subsidy or at a lesser amount or rate
adequate to remove the injury, may be imposed for purposes of preventing
occurrence of injury during the investigation.

Undertakings offered in the course of the investigation, by country of
origin or country of export or the exporter as to remove the injury
caused by dumped or subsidised imports concerned may be accepted.

Where, as a result of the investigation it is determined that there are
dumped or subsidised imports and that such imports are causing injury, a
definitive anti-dumping duty or countervailing duty at an amount equal
to the margin of dumping or amount of subsidy or at a lesser amount or
rate adequate to remove the injury shall be imposed to eliminate such
injury.

**Principles on the application of provisional and definitive measures**

**Article 5-** The amount or rate of the security deposit or the duty to
be imposed shall be specified by naming the exporters and country of
origin or export of the product concerned. However, if numerous
suppliers from the same country or more than one country are involved,
and it is impracticable to name all the suppliers, the provisional or
definitive measures may also be applied by naming only the country or
countries concerned. provisional or definitive duties shall be applied
on a non-discriminative basis on imports of such product from all
sources found to be dumped or subsidised and causing injury, except
imports from companies or countries from which undertakings have been
accepted.

Where, as a result of an investigation, it is decided to apply
definitive measures, provisional measures, if any, imposed in the course
of the investigation shall be converted to definitive measures.
Suspension or conclusion of an investigation upon acceptance of
undertakings shall not prevent collection of the provisional duties
previously imposed.

**Principles on retroactivity**

**Article 6-** As regards dumped products; duties established may be
applied retroactively where there is history of dumped imports causing
injury or where the importer was or should have been aware that the
exporter was dumping and that such practise would cause injury and where
it is determined that the remedial effects of the definitive measure to
be applied are undermined by reason of dumped imports realized in a
relatively short period of time and at a quantity likely to cause
injury.

As regards subsidised products; retroactive application may be made,
where, products benefiting from subsidies inconsistent with the
provisions of GATT 1994 and the Agreement on Subsidies and
Countervailing Measures have been imported in a relatively short period
of time at a quantity likely to cause injury that is difficult to
repair, and it is deemed necessary to preclude the recurrence of such
injury.

Retroactive application mentioned in the preceding two paragraphs shall
be limited to 90 days prior to the date of imposition of provisional
measures, provided that such date does not precede the date of
initiation of the investigation, and the importers concerned shall be
granted the opportunity to express their views on the issue.

In cases of breach of an undertaking given for dumped or subsidised
imports, retroactive application may also be used, provided that any
such retroactive application does not go beyond the date of breach of
the undertaking and for a period not exceeding 90 days prior to the date
of imposition of provisional measures.

**Duration and review of definitive measures and undertakings**

**Article 7-** Definitive measures shall remain in force as long as is
necessary to counteract injury caused by dumped or subsidised imports.

Definitive measures may be reviewed, *ex officio* or upon request by an
interested party, provided that at least one year has elapsed since
their imposition. Parties requesting the review shall submit to the
Directorate General evidence justifying the review. Depending on the
circumstances justifying the review, a review investigation shall be
initiated and carried out as to cover either dumping or subsidy and
injury simultaneously or individually.

Definitive measures shall remain in force for 5 years, from the date of
the conclusion of the most recent review investigation that has covered
both dumping or subsidy and injury examination or from the date of their
imposition.

Besides, an expiry review investigation may be initiated *ex officio* or
upon a duly substantiated request by the domestic industry, before the
expiry of the definitive measure in force. In such an investigation,
whether the expiry of the duty would be likely to lead to a continuation
or recurrence of dumping or subsidy and injury shall be examined.

Initiation of a review investigation shall not hinder the application of
definitive measures in force.

The provisions of this Article regarding the duration and review of
definitive measures shall apply as regards price undertakings as well.

The procedures and principles as regards the review investigations shall
be set out in the regulation.

**New exporter review**

**Article 8-** The decision for definitive measures may be reviewed upon
request by the new producer or exporters which have not exported the
product concerned during the period of investigation and which can show
that they are not related to any of the exporters or producers whose
products are currently subject to the definitive measures. However,
producers or exporters requesting such a review should have either
actually exported the product concerned to Turkey following the
investigation period or entered into an irrevocable contractual
obligation to export a significant quantity of it. A new exporter review
shall be carried out on an accelerated basis to determine the margin of
dumping or amount of subsidy for those who made the request.

The procedures and principles as regards new exporter reviews shall be
set out in the regulation.

**Suspension of definitive measures**

**Article 9-** Where, due to a temporary change in the market
conditions, the injury to the domestic industry is unlikely to continue
or recur as a result of the suspension, and provided that the related
producers have been given an opportunity to comment, the measures for
which at least one year has elapsed since the imposition, may be
suspended by a decision of the Board and approval of the Ministry, for a
period of 9 months. This period may be extended for a further period,
not exceeding one year.

Where, the change in market conditions is due to situations of force
majeure, such as warfare, natural disaster, fire, strike and lockout,
the requirement that the measure be in force for at least one year,
shall not be sought.

Measures may be reinstated by a decision of the Board and approval of
the Ministry, if the reason for suspension is no longer applicable.

Decisions regarding suspension and reinstatement of the definitive
measures shall be announced by a Communiqué published in the Official
Gazette.

**Refund of excessive duties**

**Article 10-** Importers may submit a written application supported by
evidence to the Directorate General to have duties paid in excess of
actual margin of dumping or amount of subsidy reimbursed. Where,
consequent to an investigation initiated after having determined that
the request contained sufficient evidence, it is found that the
anti-dumping duty or the countervailing duty collected is in excess of
the actual margin of dumping or amount of subsidy, the refund of such
excessive amount shall be decided by the Board.

The procedures and principles as regards the process and investigations
to be carried out for refunds shall be set out in the regulation.

**Prevention of circumvention**

**Article 11-** Anti-dumping duties and countervailing duties imposed
may be extended as to cover like products or parts thereof and imports
of such product from third countries, where it is determined as a result
of the investigation initiated that effects of definitive duties are
being nullified consequent to a practice, process or work for which
there is insufficient due cause or economic justification other than to
avoid the anti-dumping duty or countervailing duty in force. Imports of
the product subject to investigation may be made subject to registration
during the investigations to be carried out under this paragraph.

Where, as a result of the investigation, it is determined that the
definitive duties were nullified due to the lowering of the export
prices, the anti-dumping duty shall be reassessed in accordance with the
new dumping margin calculated. When investigations to be carried out
under this paragraph, cover the re-examination of normal value, the
imports of the product subject to investigation may be made subject to
registration during the investigation.

Where, imports of the product concerned have been subject to
registration and, consequent to the investigation it is decided to
impose measures, such measures shall be applied from the date of
registration.

The procedures and principles as regards the process and investigations
to be carried out for the prevention of circumvention shall be set out
in the regulation.

**Repealed decree**

**Article 12-** Decree No. 89/14506 and dated 8/9/1989 is hereby
repealed.

**Provisional Article 1-** For purposes of paragraph 3 of Article 7 of
this Decree; the 5 year period shall be deemed to have started, as of
26/3/1995 for definitive measures put into force before such date and
the date of imposition for definitive measures and undertakings put into
force thereafter.

**Entry into force**

**Article 13-** This Decree shall enter into force on the day of its
publication and be effective as of 25/10/1999.

**Implementation**

**Article 14-** This Decree shall be implemented by the Minister to whom
the Undersecretariat for Foreign Trade is attached.

**REGULATION ON THE**

**PREVENTION OF UNFAIR COMPETITION IN IMPORTS**

*(Official Gazette Date:30/10/1999, No:23861)*

**PART ONE**

**Aim, Scope, Legal Basis, Definitions**

**Aim**

**Article 1-** This Regulation has been prepared for purposes of
protecting a domestic industry against injury caused by unfair
competition practices in imports; namely, dumped or subsidised imports.

**Scope**

**Article 2-** This Regulation embodies the procedures to be followed
and measures to be taken for purposes of protecting a domestic industry
against injury caused by unfair competition practices in imports;
namely, dumped or subsidised imports.

**Legal Basis**

**Article 3-** This Regulation is prepared having regard to the
provisions of Law No.3577 on Prevention of Unfair Competition in
Importation.

**Definitions**

**Article 4-** Following are the definitions of the terms used in this
Regulation:

\(a\) Dumping: Export price of a product to Turkey being less than the
normal value for the like product;

\(b\) Subsidy: A direct or indirect financial contribution by the
country of origin or export, which confers a benefit or any form of
income or price support within the meaning of Article XVI of GATT 1994;

\(c\) Export Price: The price actually paid or payable for the product
when sold for export;

\(d\) Like Product: A product which is alike in all respects to the
product which is dumped or subsidised, or in the absence of such a
product, another product with similar characteristics;

\(e\) Normal Value:

\(1\) The comparable price paid or payable, in the ordinary course of
trade, for the like product when destined for consumption in the country
of origin or export;

\(2\) When there are no sales of the like product in the domestic market
of the country of origin or export in the ordinary course of trade, or
where such sales do not permit a proper comparison, the normal value
shall be the export price of the like product when exported to an
appropriate third country, provided that this price is representative or
the price calculated on the basis of the cost of production in the
country of origin plus a reasonable amount for profit;

\(f\) Dumping Margin: The amount by which the normal value exceeds the
export price;

\(g\) Amount of Subsidy: Direct or indirect financial contribution
maintained by the country of origin or export for manufacture,
production, export or transportation of the product sold for export, or
total amount of benefits in any form of income or price support in the
sense of Article XVI of GATT 1994;

\(h\) Injury: Material injury or threat of material injury to a domestic
industry or material retardation of the establishment of such an
industry;

\(i\) Circumvention:

\(1\) Cases where there is evidence that, a change in the pattern of
trade between a third country and Turkey, stemming from a practice,
process or work for which there is insufficient due cause or economic
justification other than to avoid the anti-dumping duty or
countervailing duty, existed and that the remedial effects of the duty
are being undermined or nullified in terms of the prices and/or
quantities of the like products and there is evidence of dumping or
continuance of subsidy in relation to the normal values previously
established for the like products, or

\(2\) Cases where, there is evidence that, due to the lowering of export
prices, the expected effects of the anti-dumping duty on selling prices
of the imported products subject to measures in Turkish markets are
being undermined or nullified and thus the remedial effects of the duty
in terms of removal of injury to the domestic industry are being
weakened;

\(j\) Ministry: The Ministry to which the Undersecretariat for Foreign
Trade is attached;

\(k\) Directorate General: Directorate General of Imports;

\(l\) Board: Board of Evaluation of Unfair Competition in Imports;

\(m\) GATT 1994: General Agreement on Tariffs and Trade 1994;

\(n\) The Agreement on Implementation of Article VI of GATT 1994:
Agreement at the Annex-1 to the Agreement Establishing the World Trade
Organisation, approved by the Law dated 26/1/1995 and No.4067 and
ratified by Decision of Council of Ministers dated 3/2/1995 and
No.95/6525;

\(o\) Agreement on Subsidies and Countervailing Measures: Agreement at
the Annex-1 to the Agreement Establishing the World Trade Organisation,
approved by the Law dated 26/1/1995 and No.4067 and ratified by Decision
of Council of Ministers dated 3/2/1995 and No.95/6525.

**PART TWO**

**Determination of Dumping**

**SECTION ONE**

**Normal Value**

**Determination of normal value**

**Article 5-** Normal value is the comparable price paid or payable by
independent customers, in the ordinary course of trade, for the like
product when destined for consumption in the country of origin or
export.

However, where the exporter in the exporting country does not produce or
does not sell the like product, normal value may be established on the
basis of prices of other sellers or producers.

Prices between parties which appear to be associated or to have a
compensatory arrangement with each other may not be considered to be in
the ordinary course of trade and may not be used to establish normal
value unless it is determined that they are unaffected by the
relationship.

When there are no or insufficient sales of the like product in the
domestic market of the country of export in the ordinary course of
trade, or where because of the particular market situation such sales do
not permit a proper comparison, the normal value of the like product
shall be calculated on the basis of the cost of production in the
country of origin plus a reasonable amount for selling, general and
administrative costs and for profits, or on the basis of the comparable
prices of the like product when sold for export, to an appropriate third
country, provided that those prices are representative.

As regards volume of sales of the like product, sales of the like
product intended for consumption in the domestic market of the exporting
country shall normally be considered a sufficient quantity for the
determination of normal value if such sales constitute 5 per cent or
more of the sales of the product under consideration to Turkey. However,
a lower volume of sales may also be accepted where it is determined that
such sales are of sufficient magnitude to provide for a proper
comparison.

Sales of the like product in the domestic market of the exporting
country, or export sales to a third country, at prices below per unit
production costs plus selling, general and administrative costs may be
treated as not being in the ordinary course of trade by reason of price,
and may be disregarded in determining normal value, if it is determined
that such sales are made within an extended period in substantial
quantities, and are at prices which do not provide for the recovery of
all costs within a reasonable period of time. If prices, which are below
per unit costs at the time of sale, are above weighted average per unit
costs for the period of investigation, such prices shall be considered
to provide for recovery of costs within a reasonable period of time.

The extended period of time mentioned in the preceding paragraph shall
normally be one year but shall in no case be less than six months. Sales
below unit costs shall be considered to be made in substantial
quantities when it is established that the weighted average selling
price of the transactions under consideration for the determination of
the normal value is below the weighted average unit costs, or that the
volume of sales below per unit costs is not less than 20 per cent of the
sales under consideration for the determination of normal value.

**Costs and profits**

**Article 6-** Costs shall normally be calculated on the basis of
records kept by the exporter or producer under investigation, provided
that such records are in accordance with the generally accepted
accounting principles of the exporting country and they reasonably
reflect the costs associated with the production and sale of the product
under consideration.

Consideration shall be given to evidence submitted by the producer or
exporter on the proper allocation of costs, provided that it is shown
that such allocations have been historically utilized. In the absence of
a more appropriate method, preference shall be given to the allocation
of costs on the basis of turnover.

The amounts for selling, general and administrative costs and for
profits shall be based on actual data pertaining to production and
sales, in the ordinary course of trade, of the like product, by the
exporter or producer under investigation. When the amounts for selling,
general and administrative costs and for profits can not be determined
on this basis, the amounts may be determined on the basis of:

\(a\) The actual costs and profits incurred and realised by the exporter
or producer in question in respect of production and sales in the
domestic market of the country of origin of the same general category of
products, or

\(b\) The weighted average of the costs and profits incurred and
realised by other exporters or producers subject to investigation in
respect of production and sales of the like product in the domestic
market of the country of origin, or

\(c\) Any other reasonable method, provided that the amount for profits
so established shall not exceed the profit normally realised by other
exporters or producers on sales of products of the same general category
in the domestic market of the country of origin.

**Non-market economy countries**

**Article 7-** In the case of imports from non-market economy countries,
normal value shall be determined on the basis of one of the following
methods:

\(a\) Price actually paid or payable for the like product when destined
for consumption in the domestic market of a market economy third
country, or

\(b\) Export price from a market economy third country to other
countries, including Turkey; or

\(c\) Constructed value based on the unit cost of production plus
selling, general and administrative costs and a reasonable amount for
profits, in a market economy third country for the like product, or

\(d\) Where those are not possible, any other reasonable basis,
including the price actually paid or payable in Turkey for the like
product or constructed value on the basis of the cost of production in
Turkey for the like product, plus selling, general and administrative
costs and a reasonable amount for profits.

**Other cases in the determination of normal value**

**Article 8-** In cases where products are not imported directly from
the country of origin but are exported from an intermediate country,
normal value is the comparable price paid or payable for the like
product in the domestic market of the exporting country.

However, price in the country of origin may be used for the
determination of normal value, in cases where the products are merely
transhipped through the country of export, or such products are not
produced in the country of export or there is no comparable price for
them in the country of export.

**SECTION TWO**

**Export Price**

**Determination of export price**

**Article 9-** Export price is the price that is actually paid or
payable for the product when sold for export.

In cases where there is no export price or where it appears that the
export price is unreliable because of an association or a compensatory
arrangement between the exporter and the importer or a third party, the
export price may be constructed on the basis of the price at which the
imported products are first resold to an independent buyer. If the
products are not resold to an independent buyer, or are not resold in
the condition as imported, the export price may be constructed on any
reasonable basis.

In such cases, all costs and profits, incurred and realised between
importation and resale shall be considered in the calculation. In this
respect, items particularly for usual transport, insurance, handling,
loading and ancillary costs; customs duties, other taxes and additional
fiscal liabilities payable by reason of the importation or sale of the
goods; selling, general and administrative costs and profits shall be
taken into account.

**SECTION THREE**

**Comparison and Dumping Margin**

**Fair comparison**

**Article 10-** In order to ensure a fair comparison between the export
price and normal value, such comparison shall be made at the same level
of trade, preferably at the ex-factory level, and in respect of sales
made at as nearly as possible the same time.

For purposes of price comparison; due account shall be taken of
differences in terms of sales, taxation, levels of trade, quantities,
physical characteristics and any other differences which affect price
comparability.

In order that any claim by interested parties for such differences be
taken into account, they shall be made with supporting evidence.

**Dumping margin**

**Article 11-** Dumping margin shall be established by a comparison of
normal value and export price on a weighted average or transaction
basis. However, a normal value established on a weighted average basis
may be compared to prices of individual export transactions, if there is
a pattern of export prices which differs significantly among different
purchasers, regions or time periods, and if the comparison on weighted
average or transaction basis would not reflect the full degree of
dumping being practised.

**PART THREE**

**Determination of Subsidy**

**Notion of subsidy**

**Article 12-** Subsidy shall be deemed to exist if there is a direct or
indirect financial contribution by the country of origin or export which
confers a benefit or there is any form of income or price support in the
sense of Article XVI of GATT 1994.

In order that measures be taken in respect of subsidized imports, it
should have been determined that the subsidy is prohibited as defined in
Article 3 of the Agreement on Subsidies and Countervailing Measures, or
that it is specific to an enterprise / group of enterprises or industry
/ group of industries within the meaning of Article 2 and unless the
subsidy is non-actionable as defined in Article 8 of the Agreement.

**Calculation of the amount of the countervailable subsidy**

**Article 13-** The amount of countervailable subsidies shall be
calculated in terms of the benefit conferred on the recipient during the
investigation period. This period shall normally be the most recent
accounting year of the beneficiary. However, it may be any other period
of at least 6 months prior to the initiation of the investigation for
which reliable financial and other relevant data are available.

**Calculation of the benefit to the recipient**

**Article 14-** As regards the calculation of the benefit to the
recipient, the following rules shall apply:

\(a\) Government provision of equity capital shall not be considered to
confer a benefit, unless the investment can be regarded as inconsistent
with the usual investment practice (including for the provision of risk
capital) of private investors in the territory of the country of origin
or export;

\(b\) A loan by a government shall not be considered to confer a
benefit, unless there is a difference between the amount that the firm
receiving the loan pays on the government loan and the amount that the
firm would pay for a comparable commercial loan which the firm could
actually obtain on the market. In that event the benefit shall be the
difference between the two amounts;

\(c\) A loan guarantee by a government shall not be considered to confer
a benefit, unless there is a difference between the amount that the firm
receiving the guarantee pays on a loan guaranteed by the government and
the amount that the firm would pay for a comparable commercial loan in
the absence of the government guarantee. In this case the benefit shall
be the difference between these two amounts, adjusted for any
differences in fees;

\(d\) The provision of goods or services or purchase of goods by a
government shall not be considered to confer a benefit, unless the
provision is made for less than adequate payment or the purchase is made
for more than adequate payment. The adequacy of payment shall be
determined in relation to prevailing market conditions for the product
or service in question in the country of provision or purchase
(including price, quality, availability, marketability, transportation
and other conditions of purchase or sale).

**General provisions on calculation**

**Article 15-** The amount of the countervailable subsidies shall be
determined in accordance with the following provisions:

\(a\) The amount of the countervailable subsidies shall be determined on
the basis of the per unit quantity of the subsidised product exported to
Turkey. In establishing this amount, any application fee or other costs
incurred in order to obtain the subsidy; and export taxes and all
charges levied on the export of the product to Turkey specifically
intended to offset the subsidy, may be deducted from the total subsidy.
The interested party claiming such a deduction should prove that the
claim is justified.

\(b\) Where the subsidy is not granted by reference to the quantities
manufactured, produced, exported or transported, the amount of
countervailable subsidy shall be determined by allocating the value of
the total subsidy, as appropriate, over the level of production, sales
or exports of the products concerned during the investigation period.

\(c\) Where the subsidy can be linked to the acquisition or future
acquisition of fixed assets, the amount of the countervailable subsidy
shall be calculated by spreading the subsidy across a period, which
reflects the normal depreciation of such assets in the industry
concerned. The amount so calculated which is attributable to the
investigation period, including that which derives from fixed assets
acquired before this period, shall be allocated as described in
paragraph (b) of this Article. Where the assets are non-depreciating,
the subsidy shall be valued as an interest-free loan, and be treated in
accordance with paragraph (b) of Article 14 of this Regulation.

\(d\) Where a subsidy cannot be linked to the acquisition of fixed
assets, the amount of the benefit received during the investigation
period shall in principle be attributed to this period, and allocated as
described in paragraph (b) of this Article, unless special circumstances
arise justifying attribution over a different period.

**PART FOUR**

**Determination of Injury**

**Notion of injury**

**Article 16-** The term injury shall be taken to mean material injury
or threat of material injury to a domestic industry, or material
retardation of the establishment of such an industry.

**Determination of injury**

**Article 17-** A determination of material injury shall be based on
positive evidence and shall involve an objective examination of both the
volume of dumped or subsidised imports and the effect of such imports on
prices in the domestic market for like products, and the consequent
impact of those imports on the domestic industry.

With regard to the volume of dumped or subsidised imports; consideration
shall be given to whether there has been a significant increase in such
imports, either in absolute terms or relative to production or
consumption in Turkey. With regard to the effect of the dumped or
subsidised imports on prices, consideration shall be given to whether
there has been significant price undercutting by the dumped or
subsidised imports as compared with the price of the like product in
Turkey, or whether the effect of such imports is to depress prices to a
significant degree or prevent price increases. No one or several of
these factors can necessarily give decisive guidance.

Where imports of a product from more than one country are simultaneously
subject to investigation, the effects of such imports may be
cumulatively assessed. Such assessment may be made only if margin of
dumping or amount of subsidy established in relation to the imports from
each country is more than *de minimis* and the volume of imports from
each country is not negligible, and a cumulative assessment of the
effects of the imports is appropriate in light of the conditions of
competition among imported products and the conditions of competition
between the imported products and the like domestic product.

The examination of the impact of dumped or subsidised imports on the
domestic industry concerned shall include an evaluation of all relevant
economic factors and indices having a bearing on the state of the
industry, including actual and potential decline in sales, profits,
output, market share, productivity, return on investments, and
utilization of capacity; factors affecting domestic prices; the
magnitude of the margin of dumping; actual or potential negative effects
on cash flow, inventories, employment, wages, growth, ability to raise
capital or investments. This list is not exhaustive, nor can one or
several or these factors necessarily give decisive guidance.

It must be demonstrated, with reference to the factors mentioned above,
that the dumped or subsidised imports are causing injury to the domestic
industry. The demonstration of a causal relationship between the dumped
or subsidised imports and the injury to the domestic industry shall be
based on an examination of all relevant evidence. Injury caused by
factors other than dumped or subsidised imports must not be attributed
to these imports. Factors which may be relevant in this respect include,
inter alia, the volume and prices of imports not sold at dumping or
subsidised prices, contraction in demand or changes in the patterns of
consumption, trade restrictive practices of and competition between the
foreign and domestic producers, developments in technology and the
export performance and productivity of the domestic industry.

The effect of the dumped or subsidised imports on the domestic
production shall be assessed in relation to the domestic production of
the like product when available data permit the separate identification
of that production on the basis of such criteria as the production
process, producers' sales and profits. If such separate identification
of that production is not possible, the effects of the dumped or
subsidised imports shall be assessed by the examination of the
production of the narrowest group or range of products, which includes
the like product, for which the necessary information can be provided.

A determination of a threat of material injury shall be based on facts
and not merely on allegation, conjecture or remote possibility. The
change in circumstances which would create a situation in which the
dumped or subsidised imports would cause injury must be clearly foreseen
and imminent. In making a determination regarding the existence of a
threat of material injury, consideration should be given to such factors
as:

\(a\) A significant rate of increase of dumped or subsidised imports
into the domestic market indicating the likelihood of substantially
increased importation;

\(b\) Sufficient freely disposable capacity of the exporter or an
imminent and substantial increase in such capacity indicating the
likelihood of substantially increased dumped or subsidised exports to
Turkey, taking into account the availability of other export markets to
absorb any additional exports;

\(c\) Whether imports are entering at prices that will have a
significant depressing or suppressing effect on domestic prices, and
would likely increase demand for further imports;

\(d\) Inventories of the product being investigated;

\(e\) As regards the subsidy investigations, the nature of the subsidy
in question and the trade effects likely to arise therefrom.

No one of these factors by itself can necessarily give decisive
guidance. The totality of the factors considered must lead to the
conclusion that further dumped or subsidised exports are imminent and
that, unless protective action is taken, material injury will occur.

**PART FIVE**

**Complaint, Examination and Procedure and Principles of the
Investigation**

**SECTION ONE**

**Complaint and Examination**

**Domestic industry**

**Article 18-** The term domestic industry refers to the domestic
producers as a whole of the like product in Turkey or to those of them
whose collective output of the product constitutes a major proportion of
total domestic production of those products.

However, where producers are related to the exporters or importers or
are themselves importers of the allegedly dumped or subsidised products,
the term domestic industry may be interpreted as referring to the rest
of the producers.

Producers shall be deemed to be related to exporters or importers only
if;

\(a\) One of them directly or indirectly controls the other; or

\(b\) Both of them are directly or indirectly controlled by a third
person; or

\(c\) Together they directly or indirectly control a third person,
provided that there are grounds for believing or suspecting that the
effect of the relationship is such as to cause the producer concerned to
behave differently from non-related producers.

For the purpose of this paragraph, one shall be deemed to control
another when the former is legally or operationally in a position to
exercise restraint or direction over the latter.

**Complaint and examination**

**Article 19-** Domestic producers or any natural or legal person or
association acting on behalf of domestic industry, claiming that they
are materially injured or that threat of material injury existed by
reason of dumped or subsidised imports or that the establishment of an
industry is materially retarded due to such imports, may make a written
application to the Directorate General.

The complaint shall include evidence of dumping or subsidy, injury and
the causal link between dumped or subsidised imports and the alleged
injury. Simple assertion, unsubstantiated by relevant evidence shall not
be considered a complaint.

The application shall contain such information reasonably available to
the applicant on the following:

\(a\) Identity of the complainant and a description of the volume and
value of the domestic production of the like product by the complainant;
where a written complaint is made on behalf of the domestic industry, a
list of all known domestic producers or associations of the like product
and, to the extent possible, a description of the volume and value of
domestic production of the like product accounted for by such producers
and the domestic industry on behalf of which the application has been
filed;

\(b\) A complete description of the allegedly dumped product, the names
of the country or countries of origin or export in question, the
identity of each known exporter or foreign producer and a list of
importers of the product in question;

\(c\) As regards the complaint for dumping, information on prices at
which the product in question is sold when destined for consumption in
the domestic markets of the country or countries of origin or export
(or, where appropriate, information on the prices at which the product
is sold from the country or countries of origin or export to a third
country or countries, or on the value of the product established on the
basis of cost of production plus a reasonable amount for profit) and
information on export prices or, where appropriate, on the prices at
which the product is first resold to an independent buyer in Turkey;

\(d\) As regards the complaints for subsidy; evidence with respect to
the existence, amount and nature of the subsidy;

\(e\) Evidence showing that alleged injury is caused by dumped or
subsidised imports (such evidence shall include information on the
evolution of the volume of the dumped or subsidised imports, the effect
of these imports on prices of the like product in the domestic market
and the consequent impact of the imports on the domestic industry, as
demonstrated by relevant factors and indices, listed in Article 17 of
this Regulation).

The illustrative application form, prepared as a guideline in light of
the above set factors, may be obtained from the Directorate General.

The Directorate General shall initiate an examination, where it is
determined that the complaint is made by or on behalf of the domestic
industry and sufficient evidence is thereby provided. This date shall be
deemed to be the initiation date of the examination. Where, the
complaint is not properly documented, the complainant shall be so
informed.

The General Directorate shall examine the accuracy and adequacy of the
evidence provided in the complaint to determine whether there is
sufficient evidence to justify the initiation of an investigation.

The complaint withdrawn during the examination phase shall be considered
not to have been lodged.

**SECTION TWO**

**The Investigation**

**Initiation of investigation**

**Article 20-** The Directorate General shall complete its examination
initiated upon complaint or *ex-officio* within 45 days and shall make a
proposal to the Board on whether or not to initiate an investigation.

For the initiation of an investigation, it should be determined that the
complaint is made by or on behalf of the domestic industry and there is
sufficient evidence on the existence of dumped or subsidised imports and
injury on the domestic industry caused by such imports. As regards *ex
officio* initiation of an investigation, sufficient evidence, as defined
in Article 19, of dumped or subsidised imports and existence of injury
on the domestic industry caused by such imports should be present.

The complaint shall be considered to have been made by or on behalf of
the domestic industry if it is supported by those domestic producers
whose collective output constitutes more than 50 per cent of the total
production of the like product produced by that portion of the domestic
industry expressing either support for or opposition to the application
and shall not be less than 25 per cent of total production of the like
product produced by domestic industry in Turkey. In the case of
fragmented industries involving an exceptionally large number of
producers, support and opposition of the domestic industry may be
determined by using statistically valid sampling techniques.

An investigation shall not be initiated where it is determined that the
dumping margin, amount of subsidy or volume of imports is negligible.

Where it is decided by the Board to initiate an investigation, the
government of the exporting country shall be notified and the
investigation shall be initiated by a Communiqué published in the
Official Gazette. Such Communiqué shall contain, information on the date
of initiation of the investigation, the product concerned, the name of
the country of origin or export, the bases on which the allegation of
dumped or subsidised imports and causation of injury are claimed and the
time limits granted to the interested parties to make themselves known
to the Directorate General.

If the Board decides not to initiate an investigation, the complainant
shall be so informed.

No information concerning the complaint may be publicised until the
initiation of the investigation.

**Gathering and verification of information**

**Article 21-** Following the initiation of the proceeding,
questionnaires shall be sent to the known importers and exporters of the
product concerned. As regards subsidy investigations, the government of
the exporting country shall also be sent questionnaires. Questionnaires
shall be deemed to have been received one week from the date on which
they were mailed and parties shall be given 30 days to reply. An
extension to this period may be granted, due account being taken of the
time limits of the investigation, provided that the party so requests
within time limits and shows due cause for such extension.

The Directorate General may also request additional information and
documents from the interested parties at any stage of the investigation,
where necessary.

In order to verify information provided or to obtain further details,
verification visits may be carried out at the premises of the interested
parties. Verification visits shall be carried out if the agreement of
the firms concerned is obtained and the related country has been
notified and has not objected to the investigation.

**Confidentiality**

**Article 22-** Information received for purposes of dumping or subsidy
investigations shall be used only for the purpose for which it was
requested.

Any information which is by nature confidential, because its disclosure
would be of significant competitive advantage to a competitor or would
have a significantly adverse effect upon a person supplying the
information or upon a person from whom he has acquired the information
or which is provided on a confidential basis by parties to an
investigation shall, if good cause is shown, be treated as such by the
authorities. Such information shall not be disclosed without specific
permission of the providing party.

Interested parties providing confidential information shall be required
to furnish non-confidential summaries thereof. Those summaries should be
in sufficient detail to permit a reasonable understanding of the
substance of the information. In exceptional circumstances, such parties
may indicate that such information is not susceptible of summary. In
such exceptional circumstances, a statement of the reasons why
summarisation is not possible should be provided.

If it is considered that a request for confidentiality is not warranted
and if the supplier of the information is unwilling to authorize its
disclosure in any form, such information may be disregarded unless the
accuracy of the information is satisfactorily demonstrated from other
sources.

**Interested parties**

**Article 23-** The following parties shall be deemed to be interested
parties for purposes of dumping or subsidy investigations:

\(a\) An exporter or foreign producer or the importer of a product
subject to investigation, or a business association a majority of the
members of which are the exporters, foreign producers or importers of
such product;

\(b\) The government of the exporting country;

\(c\) A producer of the like product in Turkey or a business association
a majority of the members of which are producers of the like product in
Turkey.

Nevertheless, this provision shall not preclude the other domestic or
foreign parties not listed above and likely to be affected by the
results of the investigation to be treated as interested parties for
purposes of dumping or subsidy investigations.

**Hearings**

**Article 24-** Throughout the investigation, the Directorate General
shall provide opportunities for all interested parties, for industrial
users of the product concerned and for representatives of consumer
organisations in cases where the product is commonly sold at retail
level, to express their views. To this end, hearing meetings may be
arranged upon written request from interested parties or upon invitation
made by the Directorate General, so that opposing views may be
presented.

Information submitted orally by the interested parties shall be taken
into account by the Directorate General in so far as it is submitted in
writing.

**Disclosure**

**Article 25-** As soon as an investigation has been initiated,
non-confidential copy of the complaint shall be sent to the known
exporters and to the authorities of the exporting country. Where the
number of exporters involved is so large, such information shall be
provided only to the authorities of the exporting country or to the
relevant trade association. Furthermore, other interested parties shall
be given the opportunity to access such information provided they file a
written application to that end.

Upon written request to the Directorate General and whenever
practicable, interested parties shall be provided with the opportunity
to see all information that is relevant to the presentation of their
cases and not confidential. This provision shall only be applicable for
the documents provided by the parties to the investigation and it can
under no circumstances be extended to the documents prepared by the
Directorate General for internal purposes.

In cases where a provisional measure has been imposed, interested
parties may request disclosure of the details underlying the essential
facts and considerations on the basis of which provisional measures have
been imposed. Requests for such disclosure shall be met, with due regard
being paid to the protection of confidentiality, provided that they are
made in writing and immediately following the imposition of provisional
measures.

Before a final determination is made, all interested parties shall be
informed of the essential facts and considerations, which form the basis
for the decision whether to impose definitive measures with due regard
being paid to the protection of confidentiality. Where the number of
interested parties is so large, the necessary information shall be
provided through the related business association or the representative
of the country concerned.

**Non-cooperation**

**Article 26-** In cases where an interested party does not provide
necessary information within time limits provided or refuses access to
or significantly impede the investigation or supplies false or
misleading information, such party shall be deemed to be
non-cooperative. In such cases, provisional or final findings,
affirmative or negative may be made on the basis of the facts available.

If an interested party does not cooperate, or cooperates only partially,
so that relevant information is thereby withheld, the result of the
investigation may be less favourable to that party than if it had
cooperated.

**Sampling**

**Article 27-** In cases where the number of complainants, exporters or
importers, types of product or transactions is large, the investigation
may be limited to a reasonable number of parties, products or
transactions by using samples which are statistically valid on the basis
of the information available at the time of the selection, or to the
largest representative volume of production, sales or exports which can
reasonably be investigated within the time available.

Selection for exporters, producers, importers or types of products shall
be made by the Directorate General preferably in consultation with and
with the consent of the exporters, producers or importers concerned.

In cases where the authorities have limited their examination as
provided for in this paragraph, an individual margin of dumping for any
exporter or producer not initially selected who submits the necessary
information in time for that information to be considered during the
course of the investigation shall nevertheless be determined, except
where the number of exporters or producers is so large that individual
examination would be unduly burdensome to the authorities and prevent
the timely completion of the investigation.

Where it is decided to employ sampling and there is a degree of
non-cooperation by some or all of the parties selected which is likely
to affect the outcome of the investigation, a new sample may be
selected. However, if a material degree of non-cooperation persists or
there is insufficient time to select a new sample, the provisions of
this Regulation on non-cooperation shall apply.

**Negligible rates**

**Article 28-** Negligible rates as regards the margin of dumping or
amount of subsidy or volume of imports are as follows:

\(A\) Regarding dumping investigations, cases where;

\(a\) Margin of dumping, expressed as a percentage of the export price
is less than 2 per cent; or

\(b\) The volume of dumped imports from the country concerned is found
to account for less than 3 per cent of imports of the like product and
where more than one country is involved, imports from countries
accounting for less than 3 per cent individually, does not account
collectively for more than 7 per cent of imports of the like product.

\(B\) Regarding subsidy investigations, cases where;

\(a\) Amount of subsidy is less than 1 per cent of the value of the
product concerned; or

\(b\) As regards imports from developing countries;

\(1\) Having reserved the provisions of Article 27.11 of the Agreement
on Subsidies and Countervailing Measures, the amount of subsidy does not
exceed 2 per cent of the value of the product concerned; or

\(2\) The volume of subsidised imports from the country concerned is
found to account for less than 4 per cent of the total imports of the
like product and where more than one developing country is involved,
imports from developing countries accounting for less than 4 per cent
individually, does not account collectively for more than 9 per cent of
the total imports.

**Termination and suspension of investigation**

**Article 29-** Where, as a result of the investigation, it is
determined that imports concerned are not dumped or subsidised or that
no injury is caused by such imports or margin of dumping, amount of
subsidy or volume of imports is negligible, the investigation shall be
terminated by the Board.

In cases where the complaint is withdrawn, the reason for complaint
disappeared or the complainant no longer cooperates, the investigation
may be terminated by the Board.

Where undertakings are accepted, the investigation may be suspended.

On the other hand, a subsidy investigation may be terminated or
suspended when the provision of subsidy is ceased.

**Duration of proceedings**

**Article 30-** Investigations shall except in special circumstances be
concluded within one year. The Board may extend such period up to 6
months, where necessary.

**Public notices regarding the investigation**

**Article 31-** The decision to initiate a dumping or subsidy
investigation and any decisions for provisional and definitive measures,
undertakings, suspension and termination, shall be announced by a
Communiqué published in the Official Gazette. Such notices shall contain
information on the product concerned, exporting company, the country of
export or origin and due regard being paid to the confidentiality,
findings and determinations reached in the investigation. All such
notices shall be forwarded to the countries concerned and to all known
producers and exporters of the product concerned.

**PART SIX**

**Undertakings**

**Acceptance of undertakings**

**Article 32-** Under the following circumstances, dumping or subsidy
investigations may be suspended without imposition of provisional or
definitive measures:

\(a\) Where, in the course of a dumping investigation, the exporter
undertakes to revise its export prices or to cease exports at dumped
prices and the Board accepts such undertaking; or

\(b\) Where, in the course of a subsidy investigation, the exporter
undertakes to revise its export prices or the exporting country
undertakes to cease or to limit the application of subsidies or
undertakes to impose new measures in that respect and the Board accepts
such undertaking.

Undertakings may also be proposed by the Board. No exporter or exporting
country shall be obliged to accept such undertakings.

Investigations shall be completed if the exporter in a dumping
investigation or the exporting country in a subsidy investigation so
requests or the Board so decides in both cases.

For undertakings to be sought or accepted by the Board, provisional
affirmative determinations of dumped or subsidised imports and injury
caused by such imports should have been made. As regards subsidy
investigations, undertakings offered by the exporter may only be
accepted if the approval of the country concerned is obtained.

**Breach of undertakings**

**Article 33-** The Directorate General may require the party from whom
undertakings have been accepted, to provide periodical information as
regards to the fulfilment of such undertaking and to permit verification
of pertinent data. Non-compliance with such requirements shall be
construed as a breach of undertaking.

In case of breach of undertakings, a provisional or definitive duty may
be imposed on the basis of the facts available.

**PART SEVEN**

**Review Investigations, Refund Investigations and Other
Investigations**

**SECTION ONE**

**Review Investigations**

**Interim review investigation**

**Article 34-** An interim review may be initiated for the review of the
measure in force, at the request of the exporter, importer or domestic
producer of the product concerned (plus the country of origin or export
for subsidy investigations) or *ex officio* provided that at least one
year has elapsed since the imposition of the definitive measure. Such
requests should contain sufficient evidence justifying the initiation of
the review.

An investigation shall be initiated where the request contains
sufficient evidence that the continued imposition of the measure is no
longer necessary to offset dumping or subsidy and/or that the injury
would be unlikely to continue or recur if the measure were removed or
varied, or that the existing measure is not, or is no longer, sufficient
to counteract the dumping or subsidy which is causing injury.

An interim review investigation may be carried out separately as to
cover either dumping or subsidy and injury simultaneously or
individually. In the course of this investigation, whether the
circumstances with regard to dumping or subsidy and injury have changed
significantly or whether the existing measures are achieving the
intended results in removing the injury previously established, shall be
examined.

**Expiry review investigation**

**Article 35-** A definitive measure shall expire five years from its
imposition or five years from the date of the conclusion of the most
recent review which has covered both dumping or subsidy and injury.

A notice of impending expiry shall be given in a communiqué published in
the Official Gazette in the final year of the period of application of
the measures. Domestic producers of the product concerned may, no later
than 3 months before the end of the five-year period, submit a written
request to the Directorate General containing sufficient evidence, for
the initiation of a review investigation.

Moreover, a notice announcing the expiry of the five-year period and the
revocation of measures shall also be published in the Official Gazette.

An expiry review shall be initiated upon the written request by the
domestic producers or *ex officio* and the measure concerned shall
remain in force pending the out come of such review.

An expiry review shall be initiated where there is sufficient evidence
that the expiry of the measures would be likely to result in a
continuation or recurrence of dumping or subsidy and injury. In this
respect, such a likelihood may, for example, be indicated by evidence of
continued dumping or subsidy and injury or evidence that the removal of
injury is partly or solely due to the existence of measures or evidence
that the circumstances of the exporters, or market conditions, are such
that they would indicate the likelihood of further injurious dumping or
subsidy.

In the course of this investigation; exporters, producers, the
representative of the exporting country and the domestic producers of
the product subject to measures (plus the country of origin, for subsidy
investigations), shall be provided with the opportunity to comment on
the matters set out in the review request and express their opposing
views. Conclusions shall be reached with due account taken of all
relevant and duly documented evidence presented in relation to the
question as to whether the expiry of measures would be likely, or
unlikely, to lead to the continuation or recurrence of dumping or
subsidy and injury.

**New exporter review investigation**

**Article 36-** Exporters or producers which have not exported the
product subject to measures to Turkey during the period of
investigation, may submit a written application to the Directorate
General, requesting the determination of individual margins of dumping
or subsidy amount.

The exporter applying for such review should demonstrate that it is not
related to any of the exporters or producers in the exporting country
which are subject to anti dumping or countervailing measures on the
product, and that it has actually exported the product concerned to
Turkey following the investigation period, or that it has entered into
an irrevocable contractual obligation to export a significant quantity.

A review for a new exporter shall be initiated, and carried out on an
accelerated basis, after domestic producers have been given an
opportunity to comment.

**SECTION TWO**

**Refund Investigation**

**Refund investigation**

**Article 37-** An importer requesting the reimbursement of duties
collected by such reason that margin of dumping or amount of subsidy, on
the basis of which duties were paid, has been eliminated, or reduced to
a level which is below the level of the duty in force, shall submit a
written application supported by evidence to the Directorate General,
within 6 months from the date on which definitive duties were collected.
An application for refund shall only be taken into account where it
contains precise information on the amount of duties claimed and all
customs documentation relating to the calculation and payment of such
amount, besides the evidence, for a representative period, of the normal
value and export prices to Turkey of all sales of this exporter or
producer.

In cases where the importer is not associated with the exporter or
producer concerned and such information is not immediately available, or
where the exporter or producer is unwilling to release it to the
importer, the application shall contain a statement from the exporter or
producer that the margin of dumping or amount of subsidy has been
reduced or eliminated, and that the relevant supporting evidence will be
provided to the Directorate General. Where such evidence is not
forthcoming from the exporter or producer within a reasonable period of
time the application shall be rejected.

Following the request for refund, the Board may decide to what extent
the refund should be granted or where deemed necessary may decide to
initiate a refund investigation whether to grant such application.

The decision with respect to the refund requests shall be made within 12
months following a request duly supported with evidence. Such period may
be extended up to 18 months where necessary. The payment of any refund
authorised shall be made within 90 day of such decision.

**SECTION THREE**

**Other Investigations**

**Circumvention investigations**

**Article 38-** Domestic producers, claiming that the effects of the
definitive duty or countervailing duty in force are being eliminated,
may submit a written request to the Directorate General duly supported
with evidence, for the initiation of a circumvention investigation. An
investigation may also be initiated *ex officio* upon proposal by the
Directorate General.

**Reopening of the investigation**

**Article 39-** The domestic industry, alleging that the definitive
duties were neutralized due to a fall in export prices, may submit a
written request to the Directorate General for the reopening of an
investigation. An investigation may also be initiated *ex officio* upon
the proposal by the General Directorate. The request shall contain
sufficient evidence showing that measures have led to no movement or
insufficient movement in sales prices of the product subject to measures
in the Turkish market. Following the request, where it is decided by the
Board to reopen an investigation, exporters, importers and producers of
the product concerned shall be provided with the opportunity to submit
comments on the sales prices of the product.

If during the investigation, it is concluded that the measure should
have led to movements in such prices, then, in order to remove the
injury previously established, export prices shall be reassessed and
dumping margins shall be recalculated to take account of the reassessed
export prices. Where it is considered that a lack of movement in the
prices is due to a fall in export prices which has occurred prior to or
following the imposition of measures, dumping margins may be
recalculated to take account of such lower export prices.

The requests, as regards the examination of normal value to be involved
in the investigation shall only be taken into account where complete
information on revised normal values, duly substantiated by evidence, is
made available to the Directorate General within time limits set out in
the Communiqué on the initiation of an investigation.

**SECTION FOUR**

**General Provisions**

**Procedure**

**Article 40-** Unless otherwise specified, examinations and
investigations set out under this part shall be subject to the
procedural rules followed in ordinary investigations.

**Methods**

**Article 41-** Investigations set out in this section shall be subject
to the provisions on calculations of dumping margin or amount of subsidy
and on sampling applied for normal investigations.

**Measures**

**Article 42-** Consequent to the investigations defined in Articles 34,
35 and 36 of this Regulation; decisions may be made as to the
revocation, alteration or continuation of the duties in force.

**PART EIGHT**

**Board of Evaluation of Unfair Competition in Imports**

**Structure of the Board**

**Article 43-** The Board, headed by the Director General of Imports or
the Deputy Director General assigned by the latter, consists of the
representatives of the Ministry of Agriculture and Rural Affairs,
Ministry of Industry and Commerce, the Under-secretariat of the State
Planning Organization, Under-secretariat of Customs, Union of Chambers
of Commerce and Industry and Union of Chambers of Agriculture and the
related head of department in the Directorate General of Imports.

**Working** **procedures and principles of the Board**

**Article 44-** Where necessary, the Board shall convene upon invitation
from the head of the Board. The Directorate General shall prepare the
agenda of the meeting and information on the items to be discussed shall
be sent to the members of the Board in advance.

The Board shall meet with simple majority. Where majority could not be
obtained in the first meeting, no majority shall be sought for the
meeting to be held the following working day.

The Board shall decide by majority of the votes cast. Where the votes
are equal, the side for which the head of Board voted shall be deemed to
account for the majority.

The head of Board, depending on the nature of the subjects to be
discussed and only for consultation purposes may invite representatives
from universities and relevant institutions. Such persons can not
participate in voting.

Members of the Board are not allowed to participate in the meeting, if
they are determined to be in relation with the interested parties, as
defined in Article 245 of the Law on Civil Procedure.

It is obligatory that such members of the Board representing business
associations not themselves be producers, exporters or importers of the
product subject to investigation and shall under no circumstances deal
with trade of such products. Otherwise, the provisions of the above
paragraph shall apply.

**PART NINE**

**Final Provisions**

**Authorisation**

**Article 45-** The Undersecretariat for Foreign Trade is authorised to
enact Communiqués related to the subjects governed by this Regulation.

**Repealed regulation**

**Article 46-** Regulation on the Prevention of Unfair Competition in
Imports, published in the Official Gazette No.20295, dated 27/09/1999
and the amendments thereto are hereby repealed.

**Entry into force**

**Article 47-** This Regulation shall enter into force on the day of its
publication and be effective as of 25/10/1999.

**Implementation**

**Article 48-** This Regulation shall be implemented by the Minister to
whom the Undersecretariat for Foreign Trade is attached.

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