WORLD TRADE
ORGANIZATIONG/ADP/N/1/TPKM/1
G/SCM/N/1/TPKM/1
5 June 2002
(02-3131)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS
UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN,
PENGHU, KINMEN AND MATSU
The following communication, dated  4 June 2002, has been received from the Permanent
Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
_______________
Pursuant to Article 18.5 of the Agreement on Im plementation of Article VI of the General
Agreement on Tariffs and Trade 1994 (Anti-Dumping Agreement) and Article 32.6 of the Agreementon Subsidies and Countervailing Measures (Subsidies Agreement), the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu hereby notifies the Committee on Anti-Dumping Practices and
the Committee on Subsidies and Countervailing Measures of its laws and regulations relevant to anti-
dumping measures and countervailing duties, as follows:
1. Customs Law (Article 3, Article 62-64);
2. Implementation Regulation on the Imposition of Countervailing and Anti-Dumping Duties.
Please note that these English texts are not an “official translation”.  Should there be any
discrepancy between the Chinese texts and the English texts, the original Chinese texts shall govern,
and in all instances of interpretation the Chinese original texts should be consulted.G/ADP/N/1/TPKM/1
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Customs Law
(Promulgated in 1967, as last amended on 31 October 2001)
Article 3
Customs duty shall be collected by Customs either on an ad valorem  basis or on a specific
basis in accordance with the Customs Import Tariff under which different duty rates are classified into
two columns, to goods imported from countries or areas having reciprocal treatment with the Republic
of China and those having no such treatment.  Coun tries and areas subject to each duty rate shall be
listed by the Ministry of Finance, after consulting with the other government agencies concerned and
being reported to the Executive Yuan for approval.  The Executive Yuan shall then notify theLegislative Yuan of its approval for information.  The Customs Import Tariff shall be separately
promulgated after enactment through the legislative process.
The Ministry of Finance may establish a Tariff Commission to study and review matters
relating to the amendment of the Customs Import Tariff and the levy of special customs duty.  TheCommission’s organization and nomination of its me mbers shall be drawn up by the Ministry of
Finance and reported to the Executive Yuan for approval. Staff members for the Commission shall be
selected from employees within the statutory quota of the Ministry of Finance.
Article 62
Imported goods that have directly or indirectly received a bounty or other forms of subsidy
during the process of manufacture, production, export, or transportation in the country of exportation
or origin, thereby causing injury to industry in  the Republic of China, may be subject to the
imposition of an appropriate countervailing duty in addition to the customs duty leviable under theCustoms Import Tariff.
Article 63
Imported goods that are found to have been dumped at a price less than the normal value of
its like product, thereby causing injury to industry  in the Republic of China, may be subject to the
imposition of an appropriate anti-dumping duty in addition to the customs duty leviable under theCustoms Import Tariff.
The "normal value" referred to in the pre ceding paragraph means the comparable domestic
selling price in the country of exportation or origin in  the ordinary course of trade.  In the absence of
such a domestic selling price, the comparable selling price exported to an appropriate third country, orthe constructed price consisting of the cost of production in the country of origin plus a reasonable
amount for administrative, selling and other expenses, and normal profit as the basis for comparison.
Article 64
The term "causing injury to industry in the Republic of China" referred to in the preceding
two Articles means material injury, threat of material  injury to the industry, or material retardation of
the establishment of such an industry in the Republic of China.
The amount of countervailing duty to be imposed shall not exceed that of the bounty and
subsidy received for the imported goods, and the amount of anti-dumping duty imposed shall not
exceed the dumping margin of the imported goods.G/ADP/N/1/TPKM/1
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The scope, subject, amount, commencement or termination date for imposing a countervailing
or anti-dumping duty shall be prescribed by the Ministry of Finance after consulting with the relevant
authorities and shall become effective on the date of the public announcement.
Regulations governing the qualification of applicants, application contents, investigations,
examinations, opinion statement, disposition procedure and any other required matters regarding the
imposition of a countervailing duty and anti-dumping duty shall be drafted by the Ministry of
Finance, together with the relevant authorities,  and shall be submitted to the Executive Yuan for
approval.G/ADP/N/1/TPKM/1
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Implementation Regulation on the Imposition  of Countervailing and Anti-Dumping Duties
(Promulgated on 3 July 1984. as amended on 17 November 1994, and 19 December 2001.)
Article 1
This Regulation is prescribed in accordance with paragraph 4 of Article 63 of the Customs
Law (hereinafter referred to as the Law).
Article 2
The imposition of a countervailing duty and anti-dumping duty shall be approved, in
accordance with the relevant laws and regulations, and publicized following the investigation and
examination by the Ministry of Finance (hereinafter referred to as the MOF) as initiated ex officio, by
an application, or by the referral of other government agencies.
Article 3
With respect to a case on the imposition of a countervailing duty or anti-dumping duty
(hereinafter referred to as the case), the authority  responsible for investigating whether the imported
product is subsidized or dumped shall be the MOF; whereas the authority responsible for investigating
whether the subsidized or dumped imported products cause injury to the industry in the Republic of
China (hereinafter referred to as the ROC) shall be the Ministry of Economic Affairs (hereinafter
referred to as the MOEA).
The aforesaid investigation which the MOEA responsible for shall be conducted by its
International Trade Commission (hereinafter referred to as the ITC).
Article 4
The countervailing duty and anti-dumping duty shall be paid by the duty-payer as prescribed
in Article 5 of the Law.
Article 5
For the purpose of this Regulation, the term “like product” shall be interpreted to mean a
product which is identical to, or composed of the same materials and is of the same characteristics or
features as the imported product in question.  Although different in appearance or packaging, productwhich is composed of the same materials as those of the imported product in question, shall be
considered as a like product.
For the purpose of this Regulation, the term “domestic industry” shall be interpreted to mean
the overall domestic producers of the like product (hereinafter referred to as the “domestic likeproduct”) in the ROC, or to those of them whose collective output of the like products constitutes a
major proportion of the total domestic production.  However, producers are related to importers or,
who are exporters or are themselves importers of  the product in question, should not be included in
the domestic industry.
For the purpose of the preceding paragraph, producers shall be deemed to be related to
importers or exporters only if legally or operationally, one of them directly or indirectly controls the
other, or together they directly or indirectly control a third person, or both of them are directly orG/ADP/N/1/TPKM/1
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indirectly controlled by a third person, provided that the effect of the relationship is to cause the
producer concerned to behave differently.
Article 6
The producers of a domestic like product or related commercial, industrial, labour,
agricultural associations or other legal organizations, may apply for the imposition of a countervailing
duty or anti-dumping duty against the imported produc t on behalf of the industry of the like product as
long as they are legally established and can identify their representative of the industry.
The aforesaid “representative of the industry” shall be determined by referring to the total
production of the like product within the most recent  year of the application.  The application shall be
supported by those domestic producers whose collective output constitutes more than 50 per cent of
the total production of the like product produced by the portion of the domestic industry expressing
either support for or opposition to the applicat ion; and the production of the domestic producers
expressing support for the application shall account for more than 25 per cent of the total productionof the like product produced by the domestic industry.
Article 7
Applicant applying for the imposition of a countervailing duty or anti-dumping duty on
imported products shall file a written application containing the following items together with
sufficient materials as required under Article 21 to the MOF.
1. Information about the subject imported product:
(1) the description, quality, specification, use, tariff number or Commodity Classification
Code, and other characteristics;
(2) the names of the country or countries of export or origin, and any known foreign
producers, exporters and domestic importers.
2. Information about the qualification of the applicant:
(1) the applicant’s identity, the producers of domestic like products expressing support
for and opposition to the application, and their production;
(2) the name, quality, specification, use, tariff number or Commodity Classification
Code, and other  characteristics of the like product.
3. Information about the subsidy or dumping of the subject product:
(1) the applicant applying for the imposition of a countervailing duty on the imported
product shall state that a bounty or other form of subsidy has been directly or
indirectly received during the course of manufacture, production, exportation or
transportation of the product in the country of export or origin;
(2) the applicant applying for the imposition of an anti-dumping duty on the imported
product shall state the selling price to the ROC, the comparable selling price in the
ordinary course of trade in the country of export or origin, or the comparable export
selling price  to an appropriate third country provided that the price is representative,
or the constructed price consisting of the cost of production in the country of originG/ADP/N/1/TPKM/1
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plus a reasonable amount for administrative, sales and other relevant expenses, and
for profits;
(3) where the applicant asserts that there is a necessity for the provisional imposition of
countervailing or anti-dumping duty, the applicant shall state the reasons thereof; and
(4) the applicant who asserts the necessity for the imposition of a countervailing duty or
anti-dumping duty on the imported product prior to the date of the provisional
imposition of a countervailing duty or anti-dumping duty shall state the existence of
situations prescribed under Article 43.
4. Information about the injury to the ROC industry:
(1) the production, volume and value of sales, profits, employment and utilization of
production capacity, during the most recent three years, for the applicant and the
industry which the applicant represents;
(2) the total volume and value of the imports of the subject product during the most
recent three years, the market share in the ROC, the volume and value of the imports
from the country of export, and its impact on the prices of the domestic like product;
(3) where an assertion of a retardation of establishment of a domestic industry of the like
product occurred, the applicant shall prove that the establishment of such an industry
is imminent, and that the plan for the new industry has been substantially
implemented;
(4) where there is a good reason for not being able to submit the information of the most
recent three years relating to the injury to the ROC industry, the applicant should
nevertheless submit such information of the most recent period relating to the injury
to the domestic industry.
Article 8
With respect to an application for imposition of a countervailing duty or anti-dumping duty,
the MOF shall consult with the relevant agencies  to submit a proposal for whether to initiate an
investigation to the Tariff Commission (hereinafter referred to as the Commission) for decision;
provided, that the application shall be rejected for any of the following reasons:
1. the applicant’s identity does not meet the conditions prescribed under Article 6;
2. the contents of the application does not meet the requirements prescribed under the preceding
Article, and the subsequent supplement and correction is not made within the prescribed time
limit so required by the authority;
3. the application is obviously not within the scope of the imposition of a countervailing duty or
anti-dumping duty.
With respect to the application as referred to in the preceding paragraph, the MOF shall,
within 40 days from the next day of receipt of th e application, submit the proposal to the Commission
for decision.  However, the time spent by the applicant for supplement and correction under preceding
sub-paragraph 2 shall be excluded in this 40 day period.G/ADP/N/1/TPKM/1
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With respect to an application for imposition of countervailing duty, the MOF shall, prior to
the submission of the proposal to the Commission for decision, inform the country or countries of
export or origin to engage in negotiation to reach a settlement, and provide opportunities for further
negotiation during the investigation period.
The aforesaid negotiation shall not impede the proceedings of the decision and subsequent
investigation of the case.
Article 9
For the case in which the Commission decides not to initiate the investigation, the MOF shall
immediately notify the applicant and the known interested parties in writing, close the case and make
a public notice thereof.  For the case in which the Commission decides to initiate the investigation, the
MOF shall immediately notify the applicant and the known interested parties in writing and make a
public notice thereof.
Upon initiation of an investigation, the MOF shall provide text of the application as required
under Article 7 to the government of the exporting country or countries or its representative and the
known exporters.  However, this provision does not apply with respect to information which shall be
kept confidential pursuant to the relevant laws and regulations.
Article 10
The “interested party” as set forth in this Regulation shall include the following:
1. a foreign producer, exporter, and domestic importer of the product under investigation, and a
commercial, industrial, or agricultural association in which a majority of the members of
which are domestic importers, foreign producers or exporters;
2. the government or its representative of the exporting country or area of the product under
investigation, or the country or area of origin of the product under investigation;
3. a producer of domestic like products or a commer cial, industrial, or agricultural association in
which a majority of the members of which are domestic producers;
4. other interested parties as determined by the authority concerned.
Article 11
For the case in which the Commission determines  to initiate an investigation, the MOF shall
proceed with an investigation over the existence of  a subsidy or dumping, and shall immediately refer
such case to the MOEA for investigation over the existence of injury to the ROC industry.
Article 12
When the MOEA conducts an investigation pursuan t to the preceding Article, it shall examine
the information submitted by the applicant and the interested parties, and any other relevant
information available, and shall notify the MO F regarding its preliminary determination within
40 days from the next day of receipt of the case.  For the case where the preliminary determination
made is that there was no injury to the ROC industry, the MOF shall, after the Commission
determines to terminate the case, immediately notify the applicant and the known interested parties in
writing, and make a public notice thereof.  For the case where the preliminary determination made isG/ADP/N/1/TPKM/1
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that there has caused injury to the ROC industry, the MOF shall, within 70 days from the next day of
receipt of the above notice, submit the case to the Commission to make a preliminary determination of
whether there is a subsidy or dumping, and shall notify the applicant and the known interested parties
in writing, and make a public notice thereof.
Article 13
When the MOF makes a preliminary determination that there is the existence of a subsidy or
dumping and decides that there is an emergency to provide provisional protection for the domestic
industry concerned, the MOF should, after consulting with the authorities concerned, impose
countervailing duty or anti-dumping duty prov isionally on the imported products, and shall
immediately notify the applicant and the known interested parties in writing, and shall make a public
notice thereof.
The provisional imposition of a countervailing duty or anti-dumping duty as referred to in the
preceding paragraph should be secured by the duty-payer by providing government bonds or othersecurities recognized by the MOF in an amount equivalent to the duty.
The period of the provisional imposition of a co untervailing duty or anti-dumping duty shall
not exceed 4 months.  Upon the request of the foreign exporter, the period of the provisional
imposition of an anti-dumping duty should be ex tended to 6 months following an approval.
When the MOF, in the course of an investigat ion, considers to examine whether a duty lower
than the margin of dumping would be sufficient to remove injury, the aforesaid imposition periods of
4 months and 6 months should be extended to 6 months and 9 months respectively following the
Commission's determination.
Article 14
For the case in which the preliminary determination is made, the MOF shall proceed with the
investigation, whether there is a subsidy or dumping involved, and shall, within 60 days from the next
day of the preliminary determination, submit the case to the Commission to make its final
determination.
For the case in which the final determination is that there is no existence of a subsidy or
dumping, the MOF shall terminate the case and notify the applicant and the known interested parties
in writing, and make a public notice thereof.  At  the same time, the MOF shall notify the MOEA of
the termination of its investigation.  For the case in which the final determination is that there is the
existence of a subsidy or dumping, the MOF sha ll immediately notify the applicant and the known
interested parties in writing, and make a public no tice thereof, and refer the case to the MOEA.  The
MOEA shall complete, within 40 days from the next day of receipt of the notice, the final
investigation and determination of whether the subsidy or dumping causes injury to the ROC industry,
and shall notify the MOF of its final determination.
Article 15
Where the authorities concerned find the case under investigation to be subject to one of the
following situations, the MOF shal l submit the case to the Commission for determination, and thereby
terminate the investigation:
(1) insufficient evidence of subsidy, dumping or injury;G/ADP/N/1/TPKM/1
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(2) the amount of subsidy is less than 1 per cent of the price of the product in question
imported into the ROC;
(3) the dumping margin is, upon the final determination, less than 2 per cent of the price
of the like product imported from the country or countries of export or origin into the
ROC; and
(4) the respective volumes of dumped or subsidized imports of countries in question are
found to account for less than 3 per cent of the imports of like products, except that
the total imports of all such countries in question exceeds 7 per cent of the total
imports of the like product.
Where the investigation is terminated pursuant to the preceding paragraph, the MOF shall
immediately notify the applicant and any known interested parties in writing, and make a public
notice thereof, and close the case thereafter.
Article 16
For the case in which the final determination made by the MOEA is that there is no injury to
the ROC industry, the MOF shall, after the Co mmission determines to terminate the case,
immediately notify the applicant and any known interested parties in writing, and make a publicnotice thereof.  Where the final determination is ma de that there is injury to the ROC industry, the
MOF shall, within 10 days from the next day of receipt of the notice from the MOEA, submit the case
to the Commission to determine whether to impose a countervailing duty or anti-dumping duty.  For
the case in which the Commission determines to impose a countervailing duty or anti-dumping duty,
the MOF shall, pursuant to the relevant laws and regulations, approve the products in question, thecountry or countries of export, respective duties and the commencement or closing date of the
imposition of the countervailing duty or anti-dumping  duty, and shall immediately notify the applicant
and any known interested parties in writing, and make a public notice thereof.
In deliberating the imposition of a countervailing duty or anti-dumping duty as referred to in
the preceding paragraph, the Commission shall take the existence of a subsidy or dumping and the
injury to the industry as its primary consideration, and should also consider the influence of the caseon the overall economic interests of the ROC.
Article 17
The public notice concerning the initiation of the investigation, the preliminary or final
determination, the provisional imposition of a countervailing duty or anti-dumping duty pursuant to
this Regulation, and the suspension or termination of the investigation following the acceptance of an
undertaking pursuant to Article 24, unless confidentiality is required, shall state the following:
1. Public notice concerning the initiation of the investigation:
(1) the names of the country or countries of export or origin, and the products involved;(2) the date of the initiation of the investigation;
(3) the basis on which the subsidy or dumping is alleged;
(4) a summary of the economic factors of the alleged injury to the industry;  andG/ADP/N/1/TPKM/1
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(5) the time-limits allowed for interested parties to make their views known, and the
address to which written opinion by interested parties should be directed.
2. Public notice concerning preliminary or final determination:
(1) the result of the determination on major assertion;  and(2) the reasons and legal bases of the determination.
3. Public notice concerning the provisional imposition of a countervailing duty or anti-dumping
duty:
(1) the reasons and legal bases of the preliminary determination of the existence of
subsidy, dumping and injury;
(2) the names of the foreign producers, exporters, country or countries of export or
origin;
(3) the description of the products involved;(4) the reasons for the determination of the subsidy or dumping margin thereof;  and(5) the main reasons leading to the determination of the provisional imposition of a
countervailing duty or anti-dumping duty.
4. Public notice concerning the suspension or te rmination of the investigations following the
acceptance of an undertaking:
(1) the relevant facts and legal bases for the acceptance of an undertaking;(2) the reasons for accepting or rejecting the opinions provided by the interested
countries, foreign exporters and domestic importers;
(3) the reasons for the determination of a subsidy or dumping margin, and injury thereof;
and
(4) the information of undertaking which is non-confidential.
Article 18
Where necessary for the investigation and examination of the case, the authority concerned
should extend the respective period as set forth in this Regulation up to one half.
The authority concerned shall notify the extension of the aforesaid period to the applicant and
any known interested parties in writing,  and shall make a public notice thereof.
Article 19
With respect to the investigation of the case, the authority concerned shall:
1. request the applicant and the known interested parties to respond to the questionnaire,
or to provide relevant information;G/ADP/N/1/TPKM/1
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2. conduct an appropriate investigation of the relevant evidence and information
presented in writing by the applicant and the interested parties;
3. where necessary, send officers to conduct an investigation at the premises of the
domestic importers or producers of the like product, the foreign producers or
exporters;  and
4. where necessary, notify the applicant or the known interested parties to present their
opinions, or accept the requests with reasons made by the applicant or the interested
parties to express their opinions.
When the questionnaire is delivered to the foreign producers or exporters pursuant to the first
subparagraph of the preceding paragraph, the foreign producers or exporters shall be given at least
30 days to reply from the day of receipt.  Any requests with reasons for an extension of the above
period should be granted where necessary.
Oral information furnished by the applicant or the interested parties under subparagraph 4 of
the first paragraph shall be subsequently presented in writing.
Article 20
The applicant and the interested parties may re quest to see the information relevant to the
countervailing or anti-dumping investigation, unless the information is confidential pursuant to this
Regulation.
Article 21
With respect to the information submitted, the applicant and the interested parties shall
separately identify which information may be disclosed and which may not.  However, where
confidentiality is requested, the non-confidential summary shall be furnished.
Where the request for confidentiality, pursuant to the preceding paragraph, is not warranted,
or where the non-confidential summary is not provided, the authority concerned should disregard such
information.  The applicant and the interested parties may retrieve such information within 7 days
from the next day of receipt of the notice.
Where the applicant and the interested parties request for confidentiality of the information so
provided is warranted, the authorities concerned shall not disclose such information without the
specific permission of the party submitting it.
Article 22
Where the applicant and the interested parties fail to submit the necessary information within
the specified time, or otherwise impede the investigation, the authority concerned will be free to make
determinations on the basis of the facts available.
Article 23
Unless otherwise set forth in this Regulation, the ITC shall apply mutatis mutandis to the
relevant provisions under Chapter III of the “Rules Handling Import Relief Cases” to conduct the
investigation on whether there is injury to the ROC industry.G/ADP/N/1/TPKM/1
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Article 24
Following the preliminary determination, upon receipt of satisfactory undertakings from the
government of the exporting country or the foreign exporters to eliminate the injurious effect of the
subsidy or dumping, or other effective measures, so as to remove the injury to the ROC industry, the
MOF may accept such undertakings.
With respect to the undertaking accepted pu rsuant to the preceding paragraph, the MOF
should request the government of the exporting country or the foreign exporters to periodically
provide information relevant to the fulfilment of such undertakings.
Article 25
Upon acceptance of the undertakings pursuant to the preceding Article, the MOF should
suspend the proceedings and the provisional imposition of a countervailing duty or anti-dumpingduty, and notify the applicant and the known interested parties and make a public notice thereof.
Where the government of the exporting country or the foreign exporter is in violation of the
undertakings, the authorities concerned shall continue the investigation pursuant to Article 14. In
cases when the countervailing duty or anti-dumping duty was not provisionally imposed or when suchimposition was suspended, the MOF may, when necessary, provisionally impose the countervailing
duty or anti-dumping duty after submission of fact s available to the Commission for determination.
Where the imposition of a countervailing duty or anti-dumping duty is determined pursuant to the
Law and Regulations, the definitive duties may be levied on products imported not more than 90 days
before the application of such a provisional imposition of the duties.  However, the imposition ofdefinitive duties shall not apply to products imported prior to the violation.
Article 26
Where the MOF accepts the undertaking pursuant to Article 24 hereof, the authorities
concerned should continue the investigation ex officio, or at the request of the government of the
exporting country or the foreign exporters.
Where a negative determination of subsidy, dumping or injury is made, the undertaking shall
automatically lapse, except in cases where such a dete rmination is due in large part to the existence of
the undertaking.
Article 27
For the purpose of this Regulation, a subsidy sha ll be deemed to exist if  any of the following
measures is provided directly or indirectly by the government or a public body of the exporting
country to the specific enterprise or industry and thereby a benefit is conferred:
1. provides grants, loans or equity infusions2. provides loan guarantees
3. expunges or does not collect taxes that are otherwise due.
4. purchases goods or provides goods or services other than for general infrastructure.G/ADP/N/1/TPKM/1
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5. income or price support.
The following circumstances shall not be considered as conferring a benefit:
1. the provision of equity capital by the government or a public body of the exporting
country consistent with the private sectors’ usual investment practice.
2. no difference between the commercial loan that the firm receiving from the
government or a public body of the exporting country and the commercial loan  the
firm could actually obtain on the market.
3. no difference between the amount that the firm receiving the guarantee pays on a loan
guaranteed by the government or a public body of the exporting country and the
amount the firm would pay on a comparable commercial loan absent the government
guarantee.
4. the provision of goods or services by the government or a public body of the
exporting country is no less than adequate remuneration or the purchase of goods is
no more than adequate remuneration.  The adequacy of remuneration shall be
determined in relation to prevailing market conditions.
Article 28
For the purpose of this Regulation, the amount of subsidy shall be determined by the amount
received on a per unit basis of the imported product, and any of the following circumstances shall be
taken into account accordingly:
1. where the expenses incurred are for obtaining the subsidy, or where the export duty or
tax is imposed by the exporting country to counteract the subsidy, such expenses, and
duty or tax shall be deducted;
2. where the subsidy is not granted on the basis of the quantity of production or
exportation, the total amount of the subsidy shall be allocated to the productsproduced or exported during a specific period of time;
3. where the subsidy is granted in the form of a loan or loan guarantee, it shall be
calculated by referring to the difference between the interest actually paid, or payable
by the recipient, and the interest payable under the comparable commercial loan orloan guarantee in the exporting country.
Article 29
Any of the following circumstances shall not be treated as being in the ordinary course of
trade pursuant to paragraph 2 of Article 63 of the Law, and the price thereof shall not be considered as
the normal value:
1. where the cost or price is affected because of an association or a compensatory
arrangement between the purchaser and seller; or
2. where sales of the like product in the country of origin or sales to a third country at
prices below per unit costs of production plus administrative, selling and other relevant costs,
which are made within an extended period of time, and all the weighted average selling pricesG/ADP/N/1/TPKM/1
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of the transactions are below the weighted average per unit cost, or that the volume of sales
below per unit costs represents more than 20 per cent of the volume sold in the transaction,
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 weightedaverage 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.
Article 30
For the purpose of this Regulation, the term “in the absence of the comparable domestic
selling price” as referred to Article 63 of the Law indicates that the domestic market of the country ofexport or origin is subject to one of the following situations:
1. where there are no sales of the like product in the ordinary course of trade;2. where the volume of sales of the like product is less than 5 per cent the volume of
sales of such product to the ROC.  However, a lower ratio should be acceptable if the
sales are made under ordinary course of trade and are representative;
3. where there is a particular market situation.
Article 31
Pursuant to paragraph 2 of Article 63 of the Law, when there is no comparable domestic
selling price and the constructed value is used as the basis for comparison, the amounts for
administrative, selling and other relevant expenses, and for normal profits shall be based on actualdata pertaining to production and sales of the foreign producer or exporter in the ordinary course of
trade of the product in question.  When such amounts cannot be determined on this basis, the amounts
shall be determined on the basis of:
1. the actual amounts incurred and realized by the foreign producer or exporter under
investigation in respect of production and sales in the domestic market of the country
of origin of the like product;
2. the weighted average of the actual amounts incurred and realized by other foreign
producers or exporters subject to investigation in respect of production and sales of
the like product in the domestic market of the country of origin;
3. any other reasonable method, provided that the amount for profit so established shall
not exceed the profit normally realized by other exporters or producers on sales of the
like product in the domestic market of the country of origin.
Article 32
For the case in which there is no imported selling price into the ROC or where it appears that
the selling price of the product under investigation is unreliable because of association or a
compensatory arrangement between  the foreign exporter and the domestic importer or a third party,
the selling price may be constructed by the MOF on the basis of the price at which the importedproducts are first resold to an independent buyer.G/ADP/N/1/TPKM/1
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Article 33
For the purpose of this Regulation, the dumping margin shall be determined by the difference
between the imported selling price into the ROC and its lower normal value.
The aforementioned dumping margin may be established on the basis of a comparison of a
weighted average imported selling price into the ROC with a weighted average normal value, or by a
comparison of the imported selling price and normal value on a transaction-to-transaction basis.
Where the imported selling prices into the ROC differs significantly among different purchasers,
regions or time periods, the individual selling price may be compared with a weighted average normal
value.
With respect to the constructed imported selling price into the ROC determined pursuant to
the preceding Article, the following expenses incurred between importation and resale shall be
deducted prior to making a comparison with the normal value:
1. insurance, transportation, handling, loading and unloading, and other relevant
expenses;
2. customs duties and other taxes;  and
3. reasonable profit or commission normally realized.
For the case in which products are not imported directly form the country of origin but are
exported to the ROC from a third country, the dumpin g margin shall be determined by comparing the
imported selling price into the ROC and the normal value in the third country pursuant to paragraph 1.However, a comparison may be made between the normal value in the country of origin, if the
products are merely transshipped through the third country, or if such products are not produced in the
third country, or if there is no normal value for them in the third country.
When the country of origin or export is a non-market economy, the normal value shall be
determined by comparing comparable selling price or constructed value of the like product in a
market economy third country, or by comparing comparable selling price of the like product fromsuch a third country to another market economy c ountry, or to the ROC, or where these are not
possible, on another reasonable basis.
Article 34
The determination of the dumping margin, pur suant to the preceding Article, shall comply
with the following as well:
1. comparison made between the imported selling price into the ROC and the normal
value, shall be made at the same level of trade and at as nearly as possible the sametime.
2. adjustments shall be made for differences in physical characteristics, taxation, level of
trade, transaction time, quantity, terms of sale, and other factors which affect price
comparability.
When the comparison under the preceding sub-paragraph 1 requires a conversion of
currencies, such conversion shall be made using the rate of exchange on the date of sale.  The exporterG/ADP/N/1/TPKM/1
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shall be given an opportunity to adjust their importe d selling price into the ROC to reflect sustained
movements in exchange rate during the period of investigation.
Article 35
The dumping margin as referred to in Article 33 shall be determined individually for each
known foreign producer or exporter under investigation.
For the case in which the number of foreign producers, exporters, domestic importers, or
types of products involved are so large as to make such a determination impracticable, the authorities
concerned may limit their investigation either to a reasonable number of interested parties or products,or to parties of the largest percentage of the volume of the exports from the country in question, so as
to determine the individual dumping margin for each foreign producer or exporter under investigation.
Pursuant to the preceding paragraph, the MOF shall determine an individual dumping margin
and applicable duty rate for any foreign producer or exporter not initially selected who submits thenecessary information in time, except where the number of producers or exporters is so large as to
affect the investigation.
Article 36
Any anti-dumping duty applied to foreign producers or exporters not included in the initially
selected investigation, pursuant to the preceding Article, shall not exceed the weighted average
dumping margin established with respect to the selected foreign producers or exporters.
Where any dumping margin established for selected foreign producers or exporter with
respect to the circumstances referred to in sub-paragraph 3 of paragraph 1 of Article 15, or Article 22,
such dumping margin shall be disregarded in the calculation of the aforementioned weighted average.
After the final determination is made and upon request, the MOF shall promptly carry out a
review to determine individual margins of dumping for any producers or exporters of the exporting
country in question who have not exported the product in question to the ROC during the period of
investigation, provided that these producers or exporters can show that they are not related to any ofthe producers or exporters in the exporting country who are subject to the anti-dumping duties on the
product.  The MOF may request guarantees amount to the anti-dumping duty under paragraph 1 from
the date of the initiation of the review.  In additi on, should such a review result in a determination of
dumping in respect of such foreign producers or exporters, anti-dumping duties so determined shall be
levied.
Article 37
With respect to the determination of whether the dumped or subsidized imports are causing
injury to ROC industry, the authority concerned shall investigate the following matters:
1. the increase of the imports in question, including either in absolute terms or relative to
production or consumption in the ROC.
2. the effect of the imports in question on the market price of the domestic like products,
including whether there has been a price undercutting, or whether the effect of such imports is
to depress prices or prevent price increases, and whether the price of such imports is lower
than the price of a domestic like product.G/ADP/N/1/TPKM/1
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3. the impact of the imports in question on the domestic industry, including an evaluation of the
following economic factors, having a bearing on the state of the industry:
(1) output;
(2) productivity;
(3) utilization of capacity;
(4) inventories;
(5) sales;
(6) market share;
(7) selling price;
(8) margin of dumping;(9) profits;
(10) return on investments;
(11) cash flow;
(12) employment and wages;
(13) growth;(14) ability to raise capital or investments;
(15) other relevant factors.
Article 38
In making a determination regarding the existence of a threat of material injury pursuant to
Article 64 of the Law, in addition to conducting an in vestigation pursuant to the preceding Article, the
authority concerned shall take into account, inter alia, such factors as the rate of increase of subsidized
or dumped imports, capacity, inventories, export ability of foreign producers or exporters, and
imported selling price, and consider whether further subsidized or dumped imports are imminent andmaterial injury to the ROC industry would occur unless protective action is taken.
Article 39
In assessing the effect of subsidized or dumped imports in relation to the domestic industries,
when available data permit the separate identificati on of that production on the basis of the production
process, producers’ sales and profits, the authority concerned shall take the production of the domesticlike product as the basis for assessment.
Where separate identification of that production of the domestic like product pursuant to
preceding paragraph is not possible, the authorities concerned shall assess, according to information
available, the effects of the subsidized or dumped imports by the examination of the production of thenarrowest group or range of products, which includes the like product.
Article 40
Where imports of a product from more than one country are simultaneously subject to subsidy
or anti-dumping investigations, the authority concerned may cumulatively assess the effects of such
imports, after taking into account the followings:
1. the absence of circumstances prescribed in subparagraph 2, 3 and first sentence of
subparagraph 4 of paragraph 1 of Article 15 hereof.
2. the conditions of competition between imported products.G/ADP/N/1/TPKM/1
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3. the conditions of competition between the imported products and the domestic like
products.
Article 41
Where a case concerning the provisional imposit ion of a countervailing duty or anti-dumping
duty is falling into one of the following situations, the countervailing duty or anti-dumping duty may
be levied retroactively from the date when the provisional imposition of such duty has been applied:
1. a final determination of material injury to the ROC industry is made;
2. in the existence of the provisional imposition of a countervailing duty or anti-
dumping duty which has lead to a final determination of a threat of material injury
other than material injury to the ROC industry.
Except as provided in subparagraph 2 of the preceding paragraph, where a final determination
of a threat of material injury or retardation is made, a countervailing duty or anti-dumping duty shall
be imposed from the date of such determination, and any cash or securities deposited for the
provisional imposition of such a duty, shall be refunded or released by the MOF.
Article 42
Where a final determination is negative, any cash or securities deposited for the provisional
imposition of a countervailing duty or anti-dumping duty shall be refunded or released.
Where a case is determined to impose a countervailing duty or anti-dumping duty pursuant to
paragraph 1 of the preceding Article, if the amount of the definitive duty is higher than the duty
provisionally imposed, the difference shall not be collected; if such amount is lower than the duty
provisionally imposed, the difference shall be refunded.
Article 43
Where the subsidized or dumped imports is falling into one of the following situations, the
MOF shall consult with the authorities concerned, to impose a countervailing duty or anti-dumping
duty on the product imported not more than 90 days before the application of the provisional duty:
1. the injury to the ROC industry is caused by the massive import of a product
benefiting from the subsidies in a relatively short time;
2. the injury to the ROC industry is caused by the persistence of dumping, or the
domestic importer was, or should have been, aware that the foreign exporter practices
dumping, or massively imported the product in question in a relatively short time.
Article 44
After one year of the public notice of the imposition of a countervailing duty or anti-dumping
duty, the MOF may submit the case to the Commission for a review on whether to initiate an
investigation on the lapse or change in reasons that justify the imposition of such duty, ex officio, orupon the request by the applicant or any interested party which submits positive information
substantiating the need for a review.G/ADP/N/1/TPKM/1
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For the case in which the Commission decides to initiate an investigation pursuant to the
preceding paragraph, the authorities concerned shall, within 9 months from the next day of the public
notice on the investigation, make a determination.  Where necessary, the period may be extended, but
the investigation shall normally be concluded within 12 months form the date of initiation of theinvestigation.
The procedures of review in this Article are subject to the following:1. where the case merely concerns whether the situations of subsidy or dumping have
lapsed or changed, the MOF, after the comp letion of the investigation,  shall submit a
proposal on whether to terminate or change the imposition to the Commission fordecision, and notify the interested parties and make a public notice accordingly.
2. where the case merely concerns whether the situations of injury to the ROC industry
have lapsed or changed, the MOF, shall immediately refer the case to the MOEA for
the investigation and determination.  As  the MOEA notifies the MOF of its
determination, the MOF, shall in turn s ubmit a proposal on whether to terminate or
change the imposition, and notify the interested parties and make a public notice
accordingly.
3. where the case not merely concerns whether the situations of subsidy or dumping, but
also injury to the industry have lapsed or changed, the MOF shall, in addition to
referring the injury part to  the MOEA for investigation, complete the investigation on
whether the situations of subsidy or dumping have lapsed or changed, and submit it to
the Commission for decision.  For the case in which the Commission decides that the
situations of subsidy or dumping have lapsed, the MOF shall notify the MOEA to
terminate the investigation, and on the other hand notify the interested parties and
make a public notice of terminating the imposition.
4. having completed the investigation on whether the situations of injury to the industry
have lapsed or changed and made a determination pursuant to the preceding
subparagraph, the MOEA shall notify the MO F of its result.  The MOF shall submit
the result together with its determination on whether the situations of subsidy ordumping have lapsed or changed, to the Commission for decision on whether to
terminate or change the imposition of duty, and notify the interested parties and make
a public notice accordingly.
With respect to the investigation and determination under the preceding paragraph, the
authorities concerned shall take into account whether the continued imposition of the duty is
necessary to offset subsidy or dumping, and whether the injury would be likely to continue or recur if
the duty were removed or varied.  The procedures thereof shall be applied mutatis mutandis to this
Regulation, except for Article 12 and Article 14.
For the case in which an undertaking has been accepted under Article 24, the provisions of
this Article shall apply mutatis mutandis to the procedures concerning the investigation and
determination on whether the situations supporting such an undertaking have lapsed or varied.
Article 45
The imposition of a countervailing duty or anti-dumping duty shall be terminated if such an
imposition period has lasted for 5 years and, after investigation, it is determined that the subsidy orG/ADP/N/1/TPKM/1
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dumping is no longer existent and there is no longer  any injury to the domestic industry, or the expiry
of the duty would not lead to recurrence of subsidy or dumping and injury.
Before the imposition of a countervailing duty or anti-dumping duty exceeds 4 years and 6
months, the MOF shall make a public notice that the imposition period is approaching 5 years.  And if
the interested parties under subparagraph 3 of Article 10 consider that the continuous imposition is
necessary, they shall make such an application within 1 month following the public notice.  The MOF
shall submit the application to the Commission for decision on whether to initiate the review.
With respect to the case where the initiation of a review has been decided under the preceding
paragraph, the MOF shall, within 6 months from the date when the initiation of the review ispublicized, complete the investigation on subsidy and dumping under paragraph 1 and notify the
MOEA.  The MOEA shall, within  8 months from the date when the initiation of the review is
publicized, complete the investigation on injury under paragraph 1 and notify the MOF.  The MOF
shall, within 10 days from the next day of receipt of the notice, submit the case to the Commission for
decision.  Where it is decided that the imposit ion shall continue, the MOF shall notify the known
interested parties and make a public notice thereof.
The period prescribed in the preceding paragraph may be extended where necessary;
however, in no event shall the extension exceed 12 months.  This Regulation, except for Article 12
and Article 14, shall apply mutatis mutandis with respect to the procedures used thereof.
Where the interested parties pursuant to paragraph 2 do not provide substantiated evidence, or
do not submit application within the prescribed pe riod pursuant to paragraph 2, or the Commission
decides not to initiate the review, or not to continue the imposition;  the MOF shall notify the known
interested parties and make a public notice thereof.
With respect to undertakings accepted under Article 24, the procedures thereof shall be
applied mutatis mutandis to the provisions of this Article.
Article 46
Where the imported product subject to the imposition of a countervailing duty or anti-
dumping duty, is further processed and exported, such a duty shall not be refunded; however, where
the imported product is re-exported in its original form which meets the requirements for an
exemption of customs duty under the Law, such a duty may be refunded.
Article 47
Where it is found that the producers or exporters of the exporting country provide or
compensate the amount of the countervailing duty or  anti-dumping duty which is paid by the duty-
payer, such an amount shall be further imposed as a countervailing duty or anti-dumping duty.
Article 48
With respect to issues related to investigation, examination and determination of the case
pursuant to this Regulation, the authorities concerne d may refer to relevant international agreement or
customary practices, provided that there is no specific provisions prescribed in the Law and thisRegulation.G/ADP/N/1/TPKM/1
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Article 49
With respect to making public notices pursuant to this Regulation, the MOF shall publicize
each of them in its Gazette, and may place such notices in daily newspapers.
Article 50
This Regulation shall become effective from the date of promulgation.
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