RESTRICTED
WORLD TRADE G/ADP/Q1/ROM/1
G/SCM/Q1/ROM/1
ORGANIZATION 5July1996
(96-2620)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofROMANIA1
toquestions posed byAUSTRALIA2,HONG KONG3,KOREA4AND THE UNITED STATES5
Thefollowingcommunication,dated7June1996,hasbeenreceivedfromthePermanentMission
ofRomania.
_______________
General Statement
Iwould liketostartbyexpressing ourappreciation fortheprocess ofexamination oflegislation
onanti-dumping andcountervailing measures aswellasfortheopportunity given tomycountry to
present itslegislation.
Weareconfident thatsuchaprocess ismeant toeasethewaytotrade andtoallow WTO
Members tofurther improve theirlegislation onspecific andsensitive fields.
Romania hasnotified totheWTO itslegislation onanti-dumping andcountervailing measures.
Thislegislation, dated 1992, represents ourfirstlegislation inthisfield.
Inouropinion, thislegislation isnotincontradiction withtheAgreement onImplementation
ofArticle VIofGATT 1994 andtheAgreement onSubsidies andCountervailing Measures, under
WTO. However, itdoesn 'texpressly cover indetail alltheprovisions ofthese specific agreements.
Even so,inthenotified legislation, under Article 15ofJoint Order No.128/1992, there is
aprovision stating thatwhenever there isnoprovision forspecific aspects regarding anti-dumping
orcountervailing measures, GATT stipulations aretobeapplied. These GATT stipulations were
GATT 1947untiltheendof1994. InDecember 1994theParliament adopted theresults oftheUruguay
Round multilateral negotiations, Romania becoming aWTO Member on1January 1995.
1G/ADP/N/1/ROM/1-G/SCM/N/1/ROM/1.
2G/ADP/W/217-G/SCM/W/227,3G/ADP/W/186-G/SCM/W/193,4G/ADP/W/172-G/SCM/W/179,
5G/ADP/W/226-G/SCM/W/236.G/ADP/Q1/ROM/1
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According toRomania 'sConstitution, anyinternational agreement adopted bytheParliament
isincorporated inthenational legislation. Thus, theAgreements related toanti-dumping and
countervailing measures became forusnational legislation tobeobserved.
Nevertheless, inorder tofacilitate thewayofacting fortheCommission onanti-dumping and
countervailing measures, theMinistry ofCommerce considered necessary todrawupanewlegislation
onanti-dumping, countervailing measures andsafeguards. This newlegislation ismuch more
comprehensive thanthealready notified legislation andreflects thepreoccupations oftheMinistry of
Commerce tohaveanasdeepaspossible approximation oftheAgreements related toanti-dumping
andcountervailing measures.
Thisinitiative isalsoaiming toabetter information ofthedomestic industry.
ThedraftedlegislationhasbeenpresentedforexaminationtotheGovernmentandafinaldecision
isexpected soon.
Ourintention istohavethiswork finalized assoonaspossible. Webelieve thatthiswillbe
bytheendofthisyear. Assoonasthenewlegislation willcome intoforce weshall, ofcourse, notify
ittotheWTO.
Wewant tounderline averyimportant fact,namely thatuntilnow, Romania hasnottaken
anyanti-dumping orcountervailing measures andhasnotinitiated anyinvestigation ofakind.
Replies toquestions posed byAustralia
Q.1 Dothefirsttwotirets ofparagraph 13ofArticle 2mean thatnormally thecomparison will
bemade between anormal value established onaweighted average basisandindividual export
transactions?
A.1 Ascompared withthenewAgreements intheUruguay Round, theRomanian legislation does
notexpressly mention thethirdpossibility ofcomparison between thenormal value andexport
price, andtherefore where there isnospecial provision inthenotified legislation therelevant
WTO Agreements provisions apply.
Q.2 Under Article 3,whatguidance willbeprovided totheinvestigating authorities regarding the
definition of"subsidy" andof"countervailable subsidy" aswellasforthecalculation ofthe
amount ofasubsidy, including theguidance inArticle 14oftheSubsidies Agreement?
Q.3 Under Article 4,whatguidance willbeprovided inrespect oftheprovisions intheAnti-Dumping
andSubsidies Agreements oncumulation ofdumped orsubsidized imports intheassessment
ofinjury causation?
A.2,3 AstheAnti-dumping andSubsidies Agreements became national legislation tobeobserved,
thecompetent Romanian authorities willtakeintoaccount theirprovisions.
Q.4 Under Article 4willthemagnitude ofthemargin ofdumping beoneofthefactors examined
indetermining causation foranti-dumping cases?
A.4 Theanswer isyes.G/ADP/Q1/ROM/1
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Q.5 What guidance willbeprovided totheCommission regarding support from the"domestic
industry" forinitiation under paragraph 1ofArticle 5?Could theCommission initiate an
investigation exofficio under paragraph 7ofArticle 5onthebasisofinjury toasingle producer
rather thantothedomestic industry?
A.5 When evaluating thesupport from thedomestic industry theCommission willbeguided by
Article 4paragraph 5oftheJointOrder No.128 andArticle 4oftheAnti-Dumping Agreement
orArticle 16oftheSCM Agreement.
Theanswer isno.Thesense oftheexpression "foraRomanian producer" inArticle 5
paragraph 7oftheJoint Order issimilar withthesense oftheexpression "acting onbehalf
oftheRomanian producers" inArticle 5paragraph 1oftheJoint Order.
Q.6 Dosubparagraphs3(b)and(c)ofArticle6reversetheobligationontheinvestigatingauthorities
toinform interested parties (and, incaseofcountervailing, interested Members) oftheessential
factsbefore afinaldetermination ismade (Articles 6.9and12.8oftheAnti-Dumping and
Subsidies Agreements)?
A.6 Theanswer isno.
Q.7 What guidance willbeprovided totheinvestigating authorities regarding termination of
investigations where there isafinding ofdeminimis margins ofdumping oramount of
countervailable subsidy andnegligible volumes ofallegedly dumped imports?
A.7 Therelevant provisions oftheAnti-Dumping andSubsidies Agreements willbeapplicable.
Thenewlegislation willexplicitly address these issues.
Q.8 Under Article 8onundertakings, isanaffirmative preliminary determination required before
anundertaking canbeaccepted? Could there beanundertaking withagovernment inananti-
dumping case?
A.8 AsArticle 8oftheJointOrder issilent withrespect totheaffirmative preliminary determination
provision, Article 8oftheAnti-Dumping Agreement orArticle 18.2oftheSubsidies Agreement
willapply. Anundertaking withagovernment, withrespect todumping cases, mayappear
when examining anon-market economy country andispossible andnotanobligation.
Q.9 Under paragraph 2ofArticle 9,canprovisional countervailing dutymeasures bemaintained
longer thanfourmonths?
A.9 The4months period maybeextended upto6months onlyinthecaseofprovisional anti-
dumping duties.G/ADP/Q1/ROM/1
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Q.10 Inwhat circumstances andfrom what datecould retroactive duties beimposed under
subparagraph 6(a)ofArticle 11?Inparticular whatismeant by"thedateoftheestablishment
ofinjury"?
A.10 Theprovisions ofArticle 11paragraph 6(a)oftheJointOrder aretobereadinconjunction
withtheprovisions ofArticle 10paragraph 2oftheAnti-Dumping Agreement orArticle 20
paragraph 2oftheSubsidies Agreement.
Q.11 Given thattheduties appear tobeassessed prospectively, what provision willthere befor
determining refunds where theduties collected arehigher thantheactual amount ofthesubsidy?
(Article 12doesnotseem toapply tothissituation).
A.11 Theduties imposed byprovisional measures become definitive under therulesestablished in
Articles 10and11.Article 11paragraph 6(b)provided thatwhen thelevelofdutyislessthan
theprovisional onethebalance willberefunded. Incaseofthereview ofthedecision, as
provided inArticle 12paragraph 4,therules ofArticles 6and10above apply. Therefore,
Article 11-General provisions isalsoapplicable.
Replies toquestions posed byKorea
Q.1(a) Incases where there arenorelevant provisions inthedomestic legislation, doestheWTO
Agreement apply?
A.1(a) Yes,when theexisting domestic legislation doesnotcontain specific aspects regarding dumping
orcountervailing measures, therelevant provisions inWTO Agreement, asapproved byLaw
No.133/22.12.1994, shallapply.
Q.1(b) Iftheprovisions oftheexisting domestic legislation donotconform totheWTO Agreement,
dotheprovisions oftheWTO Agreement apply?
A.1(b) Ifthere isaconflict between thenotified legislation andtheWTO Agreement, thelaterwill
prevail.
Q.2 HowwastheAnti-Dumping Agreement transposed intonational lawinRomania?
Anylaworother legislation bywhich thiswasdoneshould bemade available. Ifsuchisnot
yetavailable, whenwillRomania comply withitsinternational obligation tobring itslegislation
intoconformity withthisAgreement?
A.2 ByLawNo.133/22.12.1994 theRomanian Parliament approved theMarrakesh Agreement
EstablishingtheWorldTradeOrganization,includingtheAnti-DumpingAgreement.According
toourConstitution, anyinternational agreement approved bytheParliament isincorporated
inthenational legislation. Thus, theAnti-Dumping Agreement became national legislation
tobeobserved.
Incasetheprovisions oftheexisting legislation would notconform withtherelevant provisions
oftheAnti-Dumping Agreement, theAnti-Dumping Agreement provisions apply.G/ADP/Q1/ROM/1
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Q.3 When there arenosalesofthelikeproduct intheordinary course oftrade andsothedumping
margin isdetermined bycomparison withapriceofthelikeproducts exported toathirdcountry,
theAgreement requires theuseofacomparable price, whereas therelevant article oftheDecree
No.228 states thatthecommission mayusethehighest price.
Using thehighest price indetermining dumping margin doesnotconform totheAgreement.
A.3 Inthenewlegislation dueaccount willbetaken withrespect to"representative" prices. Until
thislegislationwillbeapproved,therelevantprovisionsoftheAnti-DumpingAgreementprevail.
Q.4 Article 2oftheJointOrder No.128 stipulates, "Allcostscalculations shallbebased onavailable
accounting data..."
Does thishavesame meaning asgenerally accepted accounting principles oftheexporting
country oftheAgreement Article 2.2.1.1?
A.4 Theanswer isyes.
Q.5 Article 2ofJoint Order No.128 stipulates, "Aclaim foradjustment which isinsignificant in
relation totheprice ...oftheaffected transaction shallbedisregarded. Ordinary, individual
adjustments ...having aneffect oflessthan0.5percentoftheprice ofaproduct shall be
considered insignificant.
Which article oftheAgreement authorizes this?
A.5 The0.5percentprovision wasestablished inorder toavoid investigations incases considered
insignificant, asnopractice existed inRomania. Thenewlegislation doesnotcontain such
aprovision.
Q.6 Article 3.7oftheAgreement stipulates, "Inmaking adetermination regarding theexistence
ofathreat ofmaterial injury, theauthorities should consider ...(i)asignificant rateifincrease
ofdumped imports ...(ii)...capacity oftheexporter ...(iii)whether imports areentering
atprices that...would likely increase demand forfurther imports, and(iv)inventories."
TheAgreementstipulatesfourconditionsshouldbeconsidered,whereastheRomanianRegulation
specifies therateinincrease andexport capacity intheexporting country. TheRegulation does
notrequire thattheother conditions provided bytheAgreement beconsidered:
(a) whether imports areentering atprices that...would likely increase demand forfurther
imports, and
(b) inventories
TheRegulation needtoaccept therelevant provisions oftheAgreement.
A.6 Article 4.3oftheJoint Order No.128/1992, related totheexistence ofathreat ofmaterial
injury isnotexhaustive withrespect tothefactors which havetobetaken intoconsiderationG/ADP/Q1/ROM/1
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when making adetermination. Article 3.7ofAnti-Dumping Agreement willbeobserved in
theprocess ofmaking adetermination.
Q.7 There isnoprovision stating thataninvestigation maynotbeapplied forlonger than18months.
Q.8 Article 8.2oftheAgreement requires theinvestigating authority tomake anaffirmative
preliminary determination before entering intoanundertaking. HowdoesRomania ensure
conformity ofitspractice withtheAgreement?
Q.9 HowdoesRomania ensure conformity ofitspractice withArticle 7.3oftheAgreement, which
requires thatprovisional measures shallnotbeapplied earlier than60daysfromtheinitiation
oftheinvestigation?
A.7,8,9 TheRomanian authorities 'practice, withrespect toinvestigations period, affirmative
preliminary determination before entering intoanundertaking andprovisional measures
willobserve therelevant provisions ofAnti-Dumping andSubsidies Agreements.
Replies toquestions posed byHong Kong
Q.1(a) What isthelegal status oftheWTO Anti-Dumping Agreement inRomania? Does ithavethe
force oflaw?
A.1(a) TheAnti-Dumping Agreement hasbeen approved bytheRomanian Parliament byLaw
No.133/22.12.1994 which ratified theWTO Agreement. Thus, theAnti-Dumping Agreement
hastheforce ofalaw.
Q.1(b) AreRomanian anti-dumping officials required, legally orotherwise, toobserve theprovisions
oftheAnti-Dumping Agreement intheconduct ofanti-dumping proceedings, ortoconsult them,
forexample ontheinterpretation ofdomestic legislation?
A.1(b) According toArticle 15oftheJointOrder No.128/1992 Romanian anti-dumping officials are
required toobserve theprovisions oftheAnti-Dumping Agreement.
Q.1(c) What steps hasRomania taken, andwhatfurther steps willittake, toensure theconformity
ofitslaws, regulations andadministrative procedures withtheprovisions oftheWTO Anti-
Dumping Agreement, inaccordance withArticle 18.4?
A.1(c) Inorder tofacilitate thewayofacting fortheCommission ondumping andcountervailing
measures, theMinistry ofCommerce considered necessary todraw upanewlegislation on
anti-dumping, countervailing duties andsafeguards. Thisnewlegislation willcover much more
aspects ondumping andcountervailing measures thanthenotified legislation andreflects
Romania 'spreoccupations tohaveanasdeepaspossible approximation ofthespecific WTO
Agreements.G/ADP/Q1/ROM/1
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Q.1(d) HowwillRomania ensure compliance withtheprovisions oftheWTO Anti-Dumping Agreement
before itslawsarebrought intototalconformity withtheWTO Anti-Dumping Agreement?
A.1(d) Inouropinion,theexistinglegislationisnotincontradictionwiththeWTOAgreement,although
itdoesnotexpressly cover indetail itsprovisions. According toArticle 15oftheJointOrder
where domestic legislation issilent WTO Agreement provisions apply.
Q.1(e) IfRomania iscontemplating adoption ofnewlegislation induecourse, whatistheintended
purpose andcoverage? What isthetimetable oftheenactment?
A.1(e) Seeanswer topoint (c).Itisintended thattheapproval ofthenewlegislation befinalized the
soonest possible.
Q.2 What judicial review procedures hasRomania putinplace inobservance ofitsobligations
under Article 13oftheWTO Anti-Dumping Agreement?
A.2 InouropinionArticle13oftheAnti-DumpingAgreement,relatedtojudicialreviewprocedures,
isanaspect ofdomestic lawsystem. Ourlegal system provides forjudicial reviews asa
principle. Therefore, thesame principle istobeapplied toanydecision onanti-dumping or
subsidies andcountervailing measures. Thisissue isunder consideration bythecompetent
authorities inRomania.
Q.3 What isRomania 'spolicy andlawfortheimplementation ofWTO Panel Reports?
A.3 There isnospecific legislation related totheimplementation ofWTO Panel Reports. If
necessary, theproceedings willtakeintoconsideration Romania 'srights andobligations related
tothisissue.
Replies toquestions posed bytheUnited States
Q.1 Article 3.2oftheA-DAgreement andArticle 15.2oftheSCMAgreement require anevaluation
ofwhether theeffect oftheunfairly traded imports "isotherwise todepress prices toasignificant
degreeorpreventpriceincreases,whichotherwisewouldhaveoccurred,toasignificantdegree."
Howisthisrequirement addressed under Romanian law?
A.1 Article 4paragraph 2(c)line6oftheJoint Order No.128/1992, which refers toprices
depression orprevention ofprices increasing willbereadinconjunction withArticle 3.2of
A-DAgreement orArticle 15.2ofSCM Agreement, thatistheprovisions ofthese articles
aretobeobserved.
Q.2 Article 3.4oftheA-DAgreement andArticle 15.4oftheSCMAgreement require anevaluation
ofcertain relevant economic factors intheexamination ofthedumped imports onthedomestic
industry. There isnorequirement inArticle 4.2oftheRules toevaluate thefollowing factors
enumerated inArticle 3.4.oftheA-DAgreement and15.3oftheSCM Agreement: "actual
andpotential decline ...inproductivity"; the"actual andpotential negative effects on...
inventories ...wages, growth, theability toraise capital orinvestments"; andfortheA-DG/ADP/Q1/ROM/1
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Agreement, "themagnitude ofthemargin ofdumping." HowdoesRomanian lawimplement
these requirement?
A.2 When evaluating therelevant economic factors intheexamination oftheimpact ofthe
dumped/subsidized imports onthedomestic industry, Article 4.2oftheRules willberead
inconjunction withArticle 3.4oftheA-DAgreement andArticle 15.4oftheSCM Agreement,
thusallthefactors stipulated inthese articles willbetaken intoconsideration.
Q.3 Article 4.3oftheRules states thatathreat ifinjury onlyexists "where aparticular situation
islikely todevelop intoanactual injury". Isthislanguage consistent withArticle 3.7ofthe
A-DAgreement andArticle 15.7oftheSCMAgreement which require thatsuchthreat "must
byclearly foreseen andimminent"?
A.3 Thesense oftheexpression "particular situation" covers thesense oftheexpression "must
beclearly foreseen andimminent". However, thenewlegislation willfollow thelanguage used
intheA-DandSCM Agreements.
Q.4 Article 4.3(a) oftheRules states thataconsideration ifthreat ofmaterial injury "may" include
anexamination ofa"rate ofincrease ofimports" under investigation. Howdoesthisarticle
comply withArticle 3.7(I) oftheA-DAgreement andArticle 15.7(I) oftheSCM Agreement,
which require theauthority toconsider a"significant rateofincrease" ofimports?
Q.5 Article 4.3(b) oftheRules states thatathreat analysis "may" takeintoaccount "export capacity
inthecountry oforigin orexport, already inexistence orwhich willbeoperational inthe
foreseeable future, andthelikelihood thattheresulting exports willbedirected toRomania".
Isthisprovision consistent withtherequirement toanalyze "sufficient freely disposable, or
animminent, substantial increase in,capacity oftheexporter", container inArticle 3.7ofthe
A-DAgreement andArticle 15.7oftheSCMAgreement? Totheextent thatnewcapacity can
be"foreseen" several years inthefuture, isthislanguage consistent withtherequirement that
future newcapacity be"imminent".
Q.6 HowdoesArticle 4.3oftheRules comply withtherequirement ofArticle 3.7(iii) oftheA-D
Agreement andArticle 15.7(iii) oftheSCMAgreement, which require theauthority to"consider
whether imports areentering atprices thatwillhaveasignificant depressing orsuppressing
effect ondomestic prices, andwould likely increase demand forfurther imports" inthecontext
ofitsthreat analysis?
Q.7 HowdoesArticle 4.3oftheRules comply withtherequirement ofArticle 3.7(iv) oftheA-D
Agreement andArticle 15.7(iv) oftheSCMAgreement, which require theauthority toconsider
"inventories oftheproduct being investigated" inthecontext ofitsthreat analysis?
A.4,5,6,7 AstheA-D andSCM Agreements became national legislation tobeobserved,
Article 4.3oftheRules hastobereadinconjunction withArticle 3.7oftheA-D
Agreement andArticle 15.7oftheSCM Agreement. Thatis,thecompetent Romanian
authorities willberequired toanalyze thefactors stipulated inArticle 4.3oftheRules,
aswellasthose inArticle 3.7(iii) (iv)oftheA-DAgreement orArticle 15.7(iii) (iv)
oftheSCM Agreement.G/ADP/Q1/ROM/1
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Q.8 Article 15oftheRules states that"whenever intheseRules special provisions arenotexpressly
mentioned", theGATT andAnti-Dumping Code provisions areapplicable. Doesthisprovision
havetheeffect ofincorporating theprovisions oftheA-DandSCM Agreements asoperative
andequivalent toRomanian law,where Romanian lawissilent?
A.8 Theanswer isyes.