G/ADP/Q1/EU/15  
G/SCM/Q1/EU/15  
 
20 October 2021  
(21-8025) Page: 1/3 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS  
FOLLOW -UP QUESTIONS POSED BY THE RUSSIAN FEDERATION  
REGARDING THE NOTIFICATIONS OF THE EUROPEAN UNION1 
The following communication dated and received on 20 October 2021, is being circulated at the 
request of the delegation of the Russian Federation.  
 
_______________  
 
 
In 2018 , the European Union notified two Regulations which introduced amendments to the 
Council  Regulation (EC) No 2016/1036 on protection against dumped imports from countries not 
members of the European Union (hereinafter – Basic Regulation):  
− Regulation (EU) 2017/2321 of the European Parliament and of the Council of 
12 December  2017 (hereinafter – Regulation (EU) 2017/2321), noti fied in document 
G/ADP/N/1/EU/3/Suppl.2  – G/SCM/N/1/EU/2/Suppl.2, and  
− Regulation (EU) 2018/825 of the European Parliament and of the Council of 30 May 2018 
(hereinafter – Regulation (EU) 2018/825), notified in document G/ADP/N/1/EU/3/Suppl.3  – 
G/SCM/N/1/EU /2/Suppl.3.  
In document G/ADP/Q1/EU/7 – G/SCM/Q1/EU/7 , the Russian Federation submitted written 
questions concerning Regulation (EU) 2017/2321. The European Union submitted written replies to 
these questions in document G/ADP/Q1/EU/12 – G/SCM/Q1/EU/12.  
Having reviewed the replies of the European Union, as wel l as having further reviewed both 
Regulation (EU) 2017/2321 and Regulation (EU) 2018/825, the Russian Federation hereby submits 
follow -up questions with regard to Regulation 2017/2321 and additional questions to both notified 
regulations. The Russian Feder ation kindly requests the European Union to provide replies to these 
questions and reserves its rights to submit any additional and follow -up questions.  
Question 1 
In its reply to Question 4 posed by the Russian Federation, the European Union stated:  
"…The aim is to ensure that dumping calculations preferably rely on data from a country that abides 
by core labour and environmental standards, where that is possible.  
 
1 G/ADP/N/1/EU/3/Suppl.2  – G/SCM/N/1/EU/2/Suppl.2 and G/ADP/N/1/EU/3/Suppl.3  – 
G/SCM/N/1/EU/2/Suppl.3.  
 G/ADP/Q1/EU/15 • G/SCM/Q1/EU/15  
 
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  In this context, when assessing whether countries have an adequate level of soci al and 
environmental standards, regard will be paid to the ratification of and compliance with the core 
labour rights UN/ILO conventions such as:  
− Freedom of Association and Protection of the Right to Organise Convention, 1948  
− Right to Organise and Collecti ve Bargaining Convention, 1949  
− Forced Labour Convention, 1930  
− Minimum Age Convention, 1973  
and environmental conventions, such as:  
− Montreal Protocol on Substances that Deplete the Ozone Layer (1987)  
− Basel Convention on the Control of Transboundary Movement s of Hazardous Wastes 
and Their Disposal (1989)  
− The United Nations Framework Convention on Climate Change (1992)  
− Kyoto Protocol to the United Nations Framework Convention on Climate Change 
(1998) ".2 
The Russian Federation kindly asks the European Union to  clarify the following : 
1a. On what legal basis does the European Union rely in making determination on a country 's 
compliance with labour and environmental conventions as part of anti -dumping procedures?  
1b. How does the European Union reconcile its "aim", mentioned in the response, with obligations 
to calculate normal value in accordance with Articles 2.1 or 2.2 of the Anti -Dumping 
Agreement?  
Question 2 
What are the criteria for considering an international treaty (which the conventions mentioned in the 
reply of the European Union to Question 4 posed by the Russian Federation actually are) as 
"relevant " (1) "when assessing the existence of significant dis tortions " and (2) "when data are 
sourced in representative countries "? 
Question 3 
The text of 2(6a)(b) of the EU Basic Regulation states:  
"[i]n assessing the existence of significant distortions regard shall be had, inter alia, to the potential 
impact of one or more of the following elements:  
− the market in question being served to a significant extent by enterprises which 
operate under the ownership, control or policy supervision or guidance of the 
authorities of the exporting country… " 
3a. What specific criteria will the European Union use to determine that an enterprise "operate[s] 
under the ownership, control or policy supervision or guidance of the authorities of the 
exporting country "? 
3b. What specific criteria will the European Union use to  determine whether "the extent " to which 
"the market in question [is] being served " by such enterprises is "significant " or not?  
 
2 G/ADP/Q1/EU/11 – G/SCM/Q1/EU/11, page 3  and G/ADP/Q1/EU/12 – G/SCM/Q1/EU/12, page 3.  G/ADP/Q1/EU/15 • G/SCM/Q1/EU/15  
 
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  3c. What provision of the Anti -Dumping Agreement does the European Union consider as the legal 
basis for determinations on each and every element listed in Article 2(6a)(b)?  
Question 4 
Regulation (EU) 2018/825 introduced Article 7(2a) which states, inter alia , the following:  
"When examining whether a duty lower than the margin of dumping would be sufficient t o remove 
injury, the Commission shall take into account whether there are distortions on raw materials with 
regard to the product concerned.  
For the purposes of this paragraph, distortions on raw materials consist of the following measures: 
dual pricing sc hemes, export taxes, export surtax, export quota, export prohibition, fiscal tax on 
exports, licensing requirements, minimum export price, value added tax (VAT) refund reduction or 
withdrawal, restriction on customs clearance point for exporters, qualified  exporters list, domestic 
market obligation, captive mining if the price of a raw material is significantly lower as compared to 
prices in the representative international markets.…  
The investigation shall cover any distortion on raw materials identified i n the second subparagraph 
of this paragraph, for the existence of which the Commission has sufficient evidence pursuant to 
Article 5. " 
Regulation (EU) 2018/825 also introduced some changes to paragraph 4 of Article 9, including the 
following provision:  
"The amount of the anti -dumping duty shall not exceed the margin of dumping established but it 
should be less than the margin if such lesser duty would be adequate to remove the injury to the 
Union industry. Article 7(2a), (2b) , (2c) and (2d), shall apply acc ordingly. " 
Please explain: (i) the relationship between Article 7(2a) and Article 2(6a)(b) and (ii) whether the 
European Union considers that measures labeled as "distortions on raw materials " in Article 7(2a) 
can be also labeled as "significant distortion s" for the purpose of Article 2(6a)(b). Does the European 
Union envisage the application of both provisions directed against so -called "distortions " in one anti -
dumping procedure?  
 
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