WORLD TRADE G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
ORGANIZATION 27March 1997
(97-1285)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATIONS OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
BULGARIA
Thefollowing communication, dated 20March 1997, hasbeenreceived fromthePermanent
Mission ofBulgaria.
_______________
With reference totheprovisions ofArticle 18.5oftheAgreement onImplementation of
Article VIoftheGATT 1994 andArticle 32.6oftheAgreement onSubsidies andCountervailing
Measures, please findenclose theEnglish translation ofRegulation No287of4December 1996
(published inState Gazette No106/1996) onprotection against dumped orsubsidized imports.G/ADP/N/1/BGR/1
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TRANSLATION
REGULATION No287
of4December 1996
onprotection against dumped orsubsidized imports
THE COUNCIL OFMINISTERS HAS ADOPTED THIS REGULATION:
Article 1.(1) ThisRegulation laysdown theconditions andprocedures forprotection of
domestic market against dumped orsubsidized imports.
(2) Theprotection under paragraph 1isconducted byapplying anti-dumping and
countervailing duties, implemented inregard oftheprovisions ofArticle VIoftheGeneral Agreement
onTariff andTrade 1994 (GATT 1994), aftercompleting aninvestigation procedure, initiated and
completed inaccordance with:
1. TheAgreement onImplementation ofArticle VIoftheGATT 1994, theAgreement
onSubsidies andCountervailing Measures, inconnection withtheAgreement onAgriculture from
Annex 1oftheMarrakesh Agreement Establishing theWorld Trade Organisation, signed on
15April 1994 inMarrakesh, and
2. thisRegulation.
Article 2.(1) Ananti-dumping dutymaybeapplied toanydumped product whose import in
theRepublic ofBulgaria causes orthreatens tocause injury totheBulgarian industry.
(2) Forthepurpose ofthisRegulation aproduct istobeconsidered asbeing dumped, i.e.
introduced intothecommerce atthedomestic market atlessthanitsnormal value, iftheprice ofthe
product exported from onecountry totheRepublic ofBulgaria islessthanthecomparable price, in
theordinarycourseoftrade,forthelikeproductwhendestinedforconsumptionintheexportingcountry.
(3) Theexporting country shallnormally bethecountry oforigin. However, itmaybe
anintermediate country, different from thecountry oforigin, except where theproducts aremerely
transshipped through thatcountry, ortheproducts concerned arenotproduced inthatcountry, orthere
isnocomparable price forthem inthatcountry.
(4) Forthepurposes ofthisRegulation, theterm“likeproduct ”shallbeinterpreted to
mean aproduct which isidentical i.e.alikeinallrespects totheproduct under consideration, or,in
theabsence ofsuchaproduct, another product which hascharacteristics closely resembling those of
theproduct under consideration.
Article 3.(1) Thenormal value shallnormally bebased ontheprices really paidorpayable,
intheordinary course oftrade, byindependent customers intheexporting country. However, where
theexporter intheexporting country doesnotproduce ordoesnotsellthelikeproduct, thenormal
value maybeestablished onthebasis ofprices ofother sellers orproducers. Prices between partiesG/ADP/N/1/BGR/1
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which appear tobeassociated ortohaveacompensatory arrangements witheachothers maynotbe
considered tobeintheordinary course oftrade andmaynotbeusedtoestablish normal value unless
itisdetermined thattheyareunaffected bytherelationship.
(2) Sales ofthelikeproduct intended fordomestic consumption shallnormally beused
todetermine normal value ifsuchsalesvolume constitutes 5%ormoreofthesalesvolume oftheproduct
under consideration totheRepublic ofBulgaria. However, alower volume ofsalesmaybeusedwhen
theprices charged areconsidered representative forthemarket oftheexporting country.
(3) When there arenoorinsufficient salesofthelikeproduct intheordinary course of
trade, orwhere because oftheparticular market situation suchsalesdonotpermit aproper comparison,
thenormal value ofthelikeproduct shallbecalculated onthebasis of:
1. Theexport prices, intheordinary course oftrade, toanappropriate third country,
provided thatthose prices arerepresentative, or
2. thecostofproduction inthecountry oforigin plusareasonable amount forselling,
general andadministrative costs andforprofits.
(4) Sales ofthelikeproduct inthedomestic market oftheexporting country, orexport
salestoathirdcountry, atprices below unitproduction costs(fixed andvariable) plusselling, general
andadministrative costsmaybetreated asnotbeing intheordinary course oftradebyreason ofprice,
andmaybedisregarded indetermining normal value, onlyifitisdetermined thatsuchsalesaremade
within anextended period insubstantial quantities, andareatprices which donotprovide forthe
recovery ofallcosts within areasonable period oftime.
(5) Ifpricesunderparagraph(4)whicharebelowcostsatthetimeofsaleareaboveweighted
average costs fortheperiod ofinvestigation, suchprices shallbeconsidered toprovide forrecovery
ofcosts within areasonable period oftime.
(6) Theextended period oftimeunder paragraph (4)shallnormally beoneyearbutshall
innocasebelessthansixmonths.
(7) Sales below unitcosts shallbeconsidered tobemade insubstantial quantities within
theperiod under paragraph (4)when :
1. Itisestablished thattheweighted average selling priceisbelow theweighted average
unitcost,or
2. Thevolume ofsalesisnotlessthan20%ofsalesbeing usedtodetermine normal value.
(8) Costs shallnormally becalculated onthebasis ofrecords keptbytheparty under
investigation (exporter orproducer), provided thatsuchrecords areinaccordance withthegenerally
accepted accounting principles ofthecountry concerned andthatitisshown thattherecords reasonably
reflect thecosts associated withtheproduction andsaleoftheproduct under consideration.
(9) Consideration shallbegiven toevidence submitted bytheexporter ortheproducer
ontheproper allocation ofcosts, provided thatitisshown thatsuchallocations havebeenhistorically
utilized. Intheabsence ofamore appropriate method, reference shallbegiven totheallocation of
costs onthebasis ofturnover.G/ADP/N/1/BGR/1
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(10) Unless already reflected inthecostallocations, costs shallbeadjusted appropriately
forthose non-recurring items ofcostwhich benefit future and/or current production. Where thecosts
forpartoftheperiod forcostrecovery areaffected by:
1. Theuseofnewproduction facilities requiring substantial additional investment, and
2. Lowcapacity utilization rates, which aretheresult ofstart-up operations which take
place within orduring partoftheinvestigation period, theaverage costs forthestart-up phase shall
bethose applicable, under theabove mentioned allocation rules, attheendofsuchaphase, andshall
beincluded atthatlevel, fortheperiod concerned, intheweighted average costs referred toin
paragraph (5)ofthisArticle.
Thelengthofastart-upphaseshallbedeterminedinrelationtothecircumstancesoftheproducer
orexporter concerned, butshallnotexceed anappropriate initial portion oftheperiod forcostrecovery.
Forthisadjustment tocostsapplicable during theinvestigation period, information relating toastart-up
phase which extends beyond thatperiod shallbetaken intoaccount where itissubmitted prior to
verification visits under Article 23.(2) 3.andwithin threemonths oftheinitiation oftheinvestigation.
(11) Theamounts forselling, forgeneral andadministrative costs andforprofits shallbe
based onactual datapertaining toproduction andsales, intheordinary course oftrade, ofthelike
product, bytheexporter orproducer under investigation. When suchamounts cannot bedetermined
onthisbasis, theamounts canbedetermined onthebasis of:
1. Theweighted average oftheactual amounts determined forotherexporters orproducers
subject toinvestigation inrespect ofproduction andsaleofthelikeproduct inthedomestic market
ofthecountry oforigin;
2. Theactual amounts applicable toproduction andsales, intheordinary course oftrade,
ofthesamegeneral category ofproducts fortheexporter orproducer inquestion inthedomestic market
ofthecountry oforigin;
3. Anyother reasonable method, provided thattheamount forprofit soestablished shall
notexceed theprofit normally realized byother exporters orproducers onsales ofproducts ofthe
same general category inthedomestic market ofthecountry oforigin.
Article 4.(1)Forthepurpose ofthisRegulation theterm“export price”shallmean theprice
actually paidorpayable foraproduct when soldforexport fromtheexporting country totheRepublic
ofBulgaria.
(2) Incases where there isnoexport price orwhere itappears thattheexport price is
unreliable because ofanassociation oracompensatory arrangements between theexporter andthe
importer orathirdparty, theexport price maybeconstructed onthebasis of:
1. Theprice atwhich theimported products isfirstresold toanindependent buyer, or
2. Onanyother reasonable basis, iftheproducts arenotresold toanindependent buyer
orarenotresold inthecondition inwhich theywere imported.
(3) Inthecases referred toinparagraph (2)allowance shallbemade forallcostsincurred
between importation andsaleandforreasonable profit margin soastoestablish areliable export price
atthefrontier leveloftheRepublic ofBulgaria. Theitems forwhich adjustment shallbemade shallG/ADP/N/1/BGR/1
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include those normally borne byanimporter butpaidbyanyparty, either inside oroutside Bulgaria,
which appears tobeassociated ortohaveacompensatory arrangement withtheimporter orexporter,
including:
1. Usual transport, insurance, handling, loading andancillary costs;
2. Customduties,anyanti-dumpingduties,andothertaxespayableintheimportingcountry
byreason oftheimportation orsaleoftheproducts;
3. Areasonable margin forselling ,general andadministrative costs andprofit.
Article 5.(1)Afaircomparison shallbemade between theexport price andthenormal value.
Thiscomparison shallbemade atthesame level oftrade andinrespect ofsales made atnearly as
possible thesametimeandwithdueaccount taken ofotherdifferences which affect pricecomparability.
(2) Where thenormal value andtheexport priceasestablished arenotonsuchacomparable
basisdueallowance, intheformofadjustments, shallbemade ineachcase,onitsmerits, fordifference
infactorswhichareclaimed,anddemonstrated,toaffectpricesandpricecomparability.Anyduplication
when making adjustments shallbeavoided.
(3) Adjustments under paragraph (2)canbemade forthefactors listed below pursuant
totherules asfollows:
1. Physical characteristics -Theamount oftheadjustment shallcorrespond toareasonable
estimate ofthemarket value ofthedifference;
2. Import charges andindirect taxes -Anadjustment shallbemade tonormal value for
anamount corresponding toanyimport charges orindirect taxes borne bythelikeproduct andby
materials physically incorporated therein, where intended forconsumption intheexporting country
andnotcollected orrefunded inrespect oftheproduct exported totheRepublic ofBulgaria;
3. Discounts, rebates andquantities -Anadjustment shallbemade fordifferences in
discounts andrebates, including those given fordifferences inquantities, iftheseareproperly quantified
andaredirectly linked tothesalesunder consideration. Anadjustment mayalsobemade fordeferred
discounts andrebates iftheclaim isbased onconsistent practice inpriorperiods, including compliance
withtheconditions required toqualify forthediscount orrebates;
4. Level oftrade-Anadjustment fordifferences inleveloftradeshallbegranted where,
inrelation tothedistribution chain inbothmarkets, itisshown thattheexport price, including a
constructed export price, isatadifferent leveloftrade incomparison withthenormal value andthe
difference hasaffected pricecomparability which isdemonstrated byconsistent anddistinct differences
infunctions andprices oftheseller forthedifferent levels oftrade inthedomestic market ofthe
exporting country. theamount oftheadjustments shallbebased onthemarket value ofthedifference.
5. Transport, insurance, handling, loading andancillary costs -Anadjustment shallbe
made fordifferences inthedirectly related costs incurred forconveying theproduct concerned from
thepremisesoftheexportertoanindependentbuyer,wheresuchcostsareincludedinthepricescharged.
6. Packing -Anadjustment shallbemade fordifferences inthedirectly related packing
costs fortheproduct concerned.G/ADP/N/1/BGR/1
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7.Credit -Anadjustment shallbemade fordifferences inthecostofanycredit granted for
thesales under consideration, provided thatitisafactor taken intoaccount inthedetermination of
theprices charged.
8. After-sales costs -Anadjustment shallbemade fordifferences inthedirect costs of
providing warranties, guarantees, technical assistance andservices, asprovided forbylawand/or in
thesalescontract.
9. Commissions -Anadjustment shallbemade fordifferences incommissions paidin
respect ofthesalesunder consideration.
10. Currency conversions -When thepricecomparison requires aconversion shallbemade
using therateofexchange onthedateofsale,except thatwhen asaleofforeign currency onforward
markets isdirectly linked totheexport saleinvolved, therateofexchange intheforward saleshall
beused. Normally, thedateofsaleshallbethedateofinvoice butthedateofcontract, purchase under
ororder confirmation maybeusedifthese more appropriately establish thematerial terms ofsale.
Fluctuations inexchange rates shallbeignored andexporters shallbegranted 60daystoreflect a
sustained movement inexchange ratesduring theinvestigation period.
(4) Inacasethattheproduct isnotimported directly from thecountry oforigin, butis
exportedtoBulgariabyothercountries,thepriceonwhichtheproductissoldfromtheexportingcountry
totheRepublic ofBulgaria shallbecompared withacomparable price intheexporting country. The
comparison canbemade withtheprice inthecountry oforigin, inacases that:
1. Theproduct isonlyreloaded intheexporting country,
2. Such aproduct isnotproduced intheexporting country, or
3. There isnotacomparable price forthisproduct intheexporting country.
Article 6.(1) Subject totheprovisions ofparagraph (5)theexistence ofmargin ofdumping
during theinvestigation period shallnormally beestablished onthebasis ofcomparison of:
1. Aweighted average normal value withaweighted average ofprices ofallexport
transactions totheRepublic ofBulgaria, or
2. Individual normal values andindividual export prices totheRepublic ofBulgaria;
3. Anormal value established onaweighted average basisandtheprices atallindividual
export transactions totheRepublic ofBulgaria, ifthere isapattern ofexport prices which differs
significantly among different purchasers, regions ortimeperiods, andifthemethods specified inthe
1and2sub-paragraph above would notreflect thefulldegree ofdumping being practised.
(2) Theparagraph 1shallnotpreclude theapplication ofArticle 36.
(3) Thedumping margin shallbetheamount bywhich thenormal value exceeds theexport
price. Where dumping margins vary, aweighted average dumping margin maybeestablished.
Article 7.(1)Acountervailing dutymaybeimposed forthepurposes ofoffsetting andsubsidy
bestowed, directly orindirectly, inthecountry oforigin orexport, uponthemanufacture, production,G/ADP/N/1/BGR/1
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export ortransportation ofanyproduct whose importation intheRepublic ofBulgaria causes orthreatens
tocause injury.
(2) Aproduct isconsidered asbeing subsidized ifitbenefits fromacountervailable subsidy
asdefined inArticle 8and9ofthisRegulation.
(3) Such countervailable subsidy maybegranted by:
1. Thegovernment ofthecountry oforigin oftheimported product, or
2. Thegovernment ofathirdcountry fromwhich theproduct isexported totheRepublic
ofBulgaria, anddifferent fromthecountry oforigin, known forthepurpose ofthisRegulation as“the
country ofexport ”.
(4) Notwithstanding theabove, where products arenotdirectly imported fromthecountry
oforigin butareexported totheRepublic ofBulgaria from anintermediate country, theprovisions
ofthisRegulation shallbefullyapplicable andthetransaction ortransactions shall, where appropriate,
beregarded ashaving taken place between thecountry oforigin andtheRepublic ofBulgaria.
Article 8.(1) Asubsidy shallbedeemed toexistif:
1. There isafinancial contribution byagovernment oranypublic bodywithin theterritory
ofthecountry inconsideration, andabenefit isthereby conferred, i.e.,where:
(a) Agovernment practice involves adirect transfer offunds (e.g.grants, loans, equity
infusion), potential direct transfers offunds orliabilities (forexample, loanguarantees);
(b) Government revenue thatisotherwise due,isforegone ornotcollected (forexample,
fiscal incentives suchastaxcredits);
(c) Agovernment provides products orservices other thangeneral infrastructure, or
purchases products;
(d) AGovernmentmakespaymentstoafundingmechanismorentrustsordirectstheprivate
bodytocarry outoneormore ofthetypeoffunctions illustrated in(a),(b)and(c)above which would
normally bevested intheGovernment andthepractice, innorealsense, differs frompractices normally
followed byGovernments, or
2. There isanyform ofincome orprice support within themeaning ofArticle XVIof
theGATT 1994.
(2) Asubsidy isdeemed toexistifasaresult ofthepractice under paragraph 1abenefit
isthereby conferred.
Article 9.(1)Subsidies asdefined inArticle 8shallbesubject tocountervailing measures only
iftheyarespecific, asdefined inparagraph (2),(3)and(4).
(2) Inorder todetermined whether asubsidy isspecific toancertain enterprise orindustry
orgroup ofenterprises orindustries within thejurisdiction ofthegranting authority, thefollowing
principles shallapply:G/ADP/N/1/BGR/1
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1. Thesubsidy isspecific -where thegranting authority, orthelegislation pursuant to
which thegranting authority operates, explicitly limits access toasubsidy tocertain enterprises;
2. Where thegranting authority, orthelegislation pursuant towhich thegranting authority
operates, establishes objective criteria orconditions governing theeligibility for,andtheamount of,
asubsidy, specificity shallnotexist, provided thattheeligibility isautomatic andthatsuchcriteria
andconditionsarestrictlyadheredto.ForthepurposesofthisRegulation,objectivecriteriaorconditions
mean criteria orconditions which areneutral, which donotfavour certain enterprises overothers,
andwhich areeconomic innature andhorizontal inapplication, suchasnumber ofemployees orsize
ofenterprise. Thecriteria orconditions mustbeclearly spelled outbylaw,regulation, orother official
document, soastobecapable ofverification.
3. If,notwithstanding anyappearance ofnon-specificity resulting from theapplication
oftheprinciples laiddown insub-paragraphs 1and2,there arereasons tobelieve thatthesubsidy
mayinfactbespecific, other factors maybeconsidered. Such factors are:
(a) useofasubsidy programme byalimited number ofcertain enterprises;
(b) predominant useofasubsidy bycertain enterprises;
(c) thegranting ofdisproportionately large amount ofsubsidy tocertain enterprises, and
(d) themannerinwhichdiscretionmaybeexercisedbythegrantingauthorityinthedecision
togrant asubsidy.
4. Inapplying theprovisions ofsub-paragraph 3,account shallbetaken oftheextent
ofdiversification ofeconomic activities within thejurisdiction ofthegranting authority, aswellas
ofthelength oftimeduring which thesubsidy programme hasbeeninoperation.
(3) Asubsidywhichislimitedtocertainenterpriseslocatedwithinadesignatedgeographical
region within thejurisdiction ofthegranting authority shallbespecific. Thesetting orchange of
generally applicable taxratesbyalllevels ofgovernment entitled todososhallnotbedeemed tobe
aspecific subsidy.
(4) Irrespective oftheprovisions ofparagraph (2)and(3),thefollowing subsidies shall
bedeemed tobespecific:
1. Subsidies contingent, inlaworinfact,whether solely orasoneofseveral other
conditions, upon export performance, including those illustrated inAnnex 1totheAgreement on
subsidies andcountervailing measures, andthesubsidies, without having beenmade legally contingent
upon export performance, isinfacttiedtoactual oranticipated exportation orexport earnings;
2. Subsidies contingent upon theuseofdomestic overimported goods.
(5) Anydetermination ofspecificity shallbeclearly substantiated onthebasisofpositive
evidence.
Article 10.(1) Thefollowing subsidies shallnotbesubject tocountervailing measures:
1. Subsidies which arenotspecific within themeaning ofArticle 9,paragraph (2)and
(3);G/ADP/N/1/BGR/1
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2. Subsidies which arespecific, within themeaning ofArticle 9,paragraph (2)and(3),
butwhich meettheconditions provided forinparagraphs (2),(3)and(4);
3. Theelement ofsubsidy which mayexistinanyofthemeasures listed inAnnex 2to
theAgreement onAgriculture.
(2) Subsidies forresearch activities conducted byfirms orbyhigher education orresearch
establishments onacontract basis withfirms shallnotbesubject tocountervailing measures, ifthe
subsidy cover notmore than75% ofthecosts ofindustrial research or50% ofthecosts of
pre-competitive development activity, andprovided thatsuchsubsidies arelimited exclusively to:
1. Personnel costs(research, technicians andother supporting staffemployed exclusively
intheresearch activity);
2. Costs ofinstruments, equipment, landandbuildings usedexclusively andpermanently
(except when disposed ofonacommercial basis) fortheresearch activity;
3. Costs ofconsultancy andequivalent services usedexclusively fortheresearch activity,
including bought-in research, technical knowledge, patents, etc.;
4. Additional overhead costs incurred directly asaresult oftheresearch activity;
5. Other running costs(such asthose ofmaterials, supplies andthelike), incurred directly
asaresult oftheresearch activity.
(3) Subsidies todisadvantaged regions within theterritory ofthecountry oforigin and/or
export,givenpursuanttoageneralframeworkofregionaldevelopment,andwhichwouldbenon-specific
ifthecriteria laiddown inArticle 9,paragraph (2)and(3)were applied toeacheligible region
concerned, shallnotbesubject tocountervailing measures provided that:
1. Each disadvantaged region isaclearly designated contiguous geographical areawith
adefinable economic andadministrative identity;
2. Theregion isconsidered asdisadvantaged onthebasisofneutral andobjective criteria,
indicating thattheregion ’sdifficulties ariseoutofmore thantemporary circumstances; suchcriteria
must beclearly spelled outbylaw,regulations, orother official document, soastobecapable of
verification;
3. Thecriteria include ameasurement ofeconomic development which shallbebased
onatleastoneofthefollowing factors:
(a) oneofeither income percapita, orGDP percapita, which must notbeabove 85%
oftheaverage fortheterritory ofthecountry oforigin orexport concerned,
(b) unemployment rate,which must beatleast110% oftheaverage fortheterritory of
thecountry oforigin orexport concerned;
(4) Subsidies topromote adaptation ofexisting facilities tonewenvironmental requirements
imposed bylawand/or regulations which result ingreater constraints andfinancial burden onfirms,
shallnotbesubject tocountervailing measures, provided thatthesubsidy:G/ADP/N/1/BGR/1
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1. isaone-time non-recurring measure; and
2. islimited to20%ofthecostofadaptation; and
3. doesnotcover thecostofreplacing andoperating thesubsidized investment, which
must befullyborne byfirms; and
4. isdirectly linked toandproportionate toafirm’splanned reductions ofnuisances and
pollution, anddoesnotcover anymanufacturing costsavings which maybeachieved; and
5. isavailabletoallfirmswhichcanadoptthenewequipmentand/orproductionprocesses.
Article 11.(1) Theamount ofcountervailing subsidies, forthepurposes ofthisRegulation,
shallbecalculated interms ofthebenefit conferred totherecipient which isfound toexistduring the
investigation period forsubsidization. Normally thisshallbethemostrecent accounting yearofthe
beneficiary, butmaybeanyother period ofatleastsixmonths priortotheinitiation oftheinvestigation
forwhich reliable financial andother relevant dataareavailable.
(2) Asregards thecalculation ofbenefit totherecipient, thefollowing rulesshallbeapplied:
1. Government provision ofequity capital shallnotbeconsidered asconferring abenefit,
unless theinvestment canberegarded asinconsistent withtheusual investment practice (including
fortheprovision ofriskcapital) ofprivate investors intheterritory ofthecountry oforigin and/or
export.
2. Aloanbyagovernment shallnotbeconsidered asconferring abenefit, unless there
isadifference between theamount thatthefirmreceiving theloanpaysonthegovernment loanand
theamount thatthefirmwould payforacomparable commercial loanwhich thefirmcould actually
obtain onthemarket. Inthiscasethebenefit shallbethedifference between thetwoamounts.
3. Aloanguarantee byagovernment shallnotbeconsidered asconferring abenefit, unless
thereisadifference between theamount thatthefirmreceiving theguarantee paysonaloanguaranteed
bythegovernment andtheamount thatthefirmwould payforacomparable commercial loaninthe
absence ofthegovernment guarantee. Inthiscasethebenefit shallbethedifference between these
twoamounts adjusted foranydifferences infees.
4. Theprovision ofgoods orservices orpurchases ofgoods byagovernment shallnot
beconsidered asconferring abenefit unless theprovision ismade forlessthanadequate remuneration,
orthepurchase ismade formore thanadequate remuneration. Theadequacy ofremuneration shall
bedetermined inrelation toprevailing market conditions fortheproduct orservice inquestion inthe
country ofprovision orpurchase (including price, quality, availability, marketability, transportation
andother conditions ofpurchase orsale).
(3) Theamount ofthesubsidy shallbedetermined according tothefollowing provisions:
1. Theamount ofthecountervailing subsidy shallbedetermined perunitofthesubsidized
product exported totheRepublic ofBulgaria.
2. Inestablishing theamount ofanysubsidy thefollowing elements maybededucted from
thetotalsubsidy:G/ADP/N/1/BGR/1
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(a) Anyapplication fee,orother costs necessarily incurred inorder toqualify for,orto
obtain, thesubsidy;
(b) Export taxes, duties orothercharges levied ontheexport oftheproduct totheRepublic
ofBulgaria specifically intended tooffset thesubsidy;
3. Where thesubsidy isnotgranted byreference tothequantities manufactured, produced,
exported ortransported theamount ofcountervailing subsidy shallbedetermined byallocating the
value ofthesubsidy, asappropriate, overthelevel ofproduction, sales orexports oftheproducts
concerned during theinvestigation period forsubsidization.
4. Where thesubsidy canbelinked totheacquisition orfuture acquisition offixedassets,
theamount ofcountervailing subsidy shallbecalculated byspreading thesubsidy across aperiod which
reflects thenormal depreciation ofsuchassets intheindustry concerned. Theamount socalculated
which isattributable totheinvestigation period, including thatwhich derives fromfixedassets acquired
before thisperiod, shall beallocated asdescribed insub-paragraph 3.Where theassets are
non-depreciating, thesubsidy shallbevalued asaninterest-free loan, andbetreated inaccordance
withparagraph (2),sub-paragraph 2.
5. Where asubsidy cannot belinked totheacquisition offixed assets, theamount ofthe
benefitreceivedduringtheinvestigationperiodshallinprinciplebeattributedtothisperiod,andallocated
asdescribed insub-paragraph 3,unless special circumstances arisejustifying attribution overadifferent
period.
Article12.(1)Pursuant tothisRegulation, theterm“injury ”fromdumping orsubsidized import
shallbetaken tomean:
1. Material injury totheBulgarian industry;
2. Threat ofmaterial injury totheBulgarian industry;
3. Material retardation oftheestablishment ofsuchanindustry.
(2) Adetermination ofinjury shallbebased onpositive evidence andshallinvolve an
objective examination ofthefollowing factors
1. Volume ofdumped orsubsidized imports andtheeffect ofthedumped imports onprices
intheBulgarian market forlikeproducts; and
2. Theconsequent impact ofthose imports ontheBulgarian industry.
Article 13.(1) Withregard totheexamination ofthefactors under theprovisions ofArticle 12
paragraph (2)sub-paragraph 2shallbeconsidered thefollowing:
1. Whether there hasbeenasignificant increase indumped imports, either inabsolute
terms orrelative toproduction orconsumption intheRepublic ofBulgaria;
2. Whether there hasbeenasignificant price undercutting bythedumped imports as
compared withtheprice ofalikeproduct intheRepublic ofBulgaria, orwhether theeffect ofsuch
imports isotherwise todepress prices toasignificant degree orprevent price increase, which would
otherwise haveoccurred, toasignificant degree.G/ADP/N/1/BGR/1
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(2) Nooneormoreofthefactorsunderparagraph(1)cannecessarilygivedecisiveguidance.
(3) Where imports ofaproduct from more thanonecountry aresimultaneously subject
toanti-dumping investigation, theeffects ofsuchimports shallbecumulatively assessed onlyifitis
determined that:
1. Themargin ofdumping established inrelation totheimports from eachcountry is
more thandeminimus asdefined inArticle 30paragraph (1)sub-paragraph 2(e),andrespectively the
amount ofthesubsidy established inrelation totheimports fromeachcountry ismore thandeminimus
asdefined inArticle 30paragraph (1)sub-paragraph 2(e),andthatthevolume ofimports from each
country isnotnegligible, and
2. Acumulative assessment oftheeffects oftheimports isappropriate inlightofthe
conditions ofcompetition between imported products andtheconditions ofcompetition between the
imported products andthelikeBulgarian products.
(4) Theexemption oftheimpact ofthedumped andsubsidized imports ontheBulgarian
industry concerned shallinclude anevaluation ofallrelevant economic factors andindices having a
bearing onthestateoftheindustry, including:
1. Thefactthatanindustry isstillintheprocess ofrecovering from theeffects ofpast
subsidization ordumping;
2. Themagnitude oftheamount ofcountervailable subsidies;
3. Actual andpotential decline insales, profits, output, market share, productivity, return
oninvestments, utilization ofcapacity;
4. Factors affecting theprices onthedomestic market;
5. Actual andpotential negative effects oncashflow, inventories, employment, wages,
growth, ability toraisecapital orinvestments.
(5) Nooneorseveral ofthefactors under paragraph (4)necessarily givedecisive guidance.
Article 14.(1) Itmust bedemonstrated, from alltherelevant evidence presented inrelation
toArticle12paragraph(2),thatthedumpedandsubsidizedimportsarecausinginjurywithinthemeaning
ofthisRegulation. Specifically, thisshallentail ademonstration thatthevolume and/or price levels
identified pursuant toArticle 13paragraph (1)and(4)areresponsible foranimpact ontheBulgarian
industry, andthatthisimpact exists toadegree which enables ittobeclassified asmaterial.
(2) Known factors other thanthedumped orsubsidized imports which atthesame time
areinjuring theBulgarian industry shallalsobeexamined toensure thatinjury caused bythese other
factors isnotattributed tothedumped orsubsidized imports. Suchfactors are:thevolume andprices
ofimports notsoldatdumping prices, contraction indemand orchanges inthepatterns ofconsumption,
restrictive trade practices of,andcompetition between, third country andtheBulgarian producers,
developments intechnology andtheexport performance andproductivity oftheBulgarian industry.
(3) Theeffect ofthedumped andsubsidized imports shallbeassessed inrelation tothe
productionoftheBulgarianindustryoflikeproductwhenavailabledatapermittheseparateidentification
ofthatproduction onthebasisofsuchcriteria astheproduction process, producers ’salesandprofits.G/ADP/N/1/BGR/1
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(4) Ifsuchseparate identification asprovided inparagraph (3)isnotpossible, theeffects
ofthedumped andsubsidized imports shallbeassessed bytheexamination oftheproduction ofthe
narrowest group orrange ofproducts, which includes thelikeproduct, forwhich thenecessary
information canbeprovided.
Article 15.(1) Adetermination ofathreat ofmaterial injury shallbebased onfactsonnot
merely onallegation, conjecture orremote possibility. Thechange incircumstances which would create
asituation inwhich thesubsidy would cause injury must beclearly foreseen andimminent.
(2) Inmaking adetermination regarding theexistence ofathreat ofmaterial injury,
consideration should begiven to,interalia,suchfactors as:
1. Asignificantrateofincreaseofdumpedandsubsidizedimportsintothedomesticmarket
indicating thelikelihood ofsubstantially increased imports;
2. Sufficientfreelydisposableoranimminent,substantialincreaseincapacityoftheexporter
indicating thelikelihood ofsubstantially increased subsidized imports totheRepublic ofBulgaria, taking
intoaccount theavailability ofother export markets toabsorb anyadditional exports;
3. Whether imports areentering atprices thatwould ,toasignificant degree, depress
prices orprevent priceincrease which otherwise would haveoccurred, andwould likely increase demand
forfurther import; and
4. Inventories oftheproduct being investigated.
(3) Inmaking adetermination regarding theexistence ofathreat ofmaterial injury,
consideration should begiven toalsotothenature ofthesubsidy orsubsidies inquestion andthetrade
effects likely toarisetherefrom.
(4) Nooneofthefactorsunderparagraphs(2)and(3)cannecessarilygivedecisiveguidance
butthetotality ofthefactors considered must leadtotheconclusion thatfurther subsidized exports
areimminent andthat,unless protective action istaken material injury would occur.
Article 16.(1) Forthepurposes ofthisRegulation theterm“Bulgarian production ”shallbe
interpreted asareferring to:
1. TheBulgarian producers asawhole tothelikeproducts, or
2. Those ofthemwhose collective output oftheproducts constitute amajor proportion,
asdefined inArticle 18paragraph (2),ofthetotaldomestic production ofthose products.
(2) Theprovisions ofparagraph (1)shallnotbeapplied when:
1. Producers arerelated totheexporters orimporters orarethemselves importers ofthe
allegedly dumped orsubsidized product, theterm“Bulgarian production ”shallbeinterpreted asa
referring totherestoftheproducers;
2. Inexceptional circumstances theterritory oftheRepublic ofBulgaria may, forthe
production inquestion, bedivided intotwoormore competitive markets andtheproducers within each
market mayberegarded asaseparate industry if:G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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(a) theproducers within suchmarket sellalloralmost alloftheirproduction oftheproduct
inquestion inthatmarket, and
(b) thedemand onthatmarket isnottoanysubstantial degree supplied byproducers of
theproduct inquestion located elsewhere intheRepublic ofBulgaria.
(3) Incases under paragraph (2)sub-paragraph 2injury maybefound toexistevenwhere
amajor proportion ofthetotalBulgarian production isnotinjured, provided there isaconcentration
ofdumped orsubsidized imports intosuchanisolated market andprovided further thatthedumped
andsubsidized imports arecausing injury totheproducers ofalloralmost alloftheproduction within
suchmarket.
(4) Forthepurposes ofparagraph (2)sub-paragraph 1ofthisRegulation, producers shall
beconsidered toberelated toexporters orimporters onlyif:
1. Oneofthem directly orindirectly controls theother, or
2. Bothofthem aredirectly orindirectly controlled byathirdperson, or
3. Together theydirectly orindirectly control athirdperson,
provided thatthere aregrounds forbelieving orsuspecting thattheeffect oftherelationship issuch
astocause theproducer concerned tobehave differently from non-related producers.
(5) Forthepurposes ofparagraph (4),oneshallbedeemed tocontrol another when the
former islegally oroperationally inaposition toexercise restraint ordirection overthelatter.
(6) When the“Bulgarian production ”hasbeeninterpreted asreferring totheproducers
inacertain region, theexporters shall begiven theopportunity tooffer undertakings pursuant to
Article 29inrespect oftheregion concerned. Insuchcases measures areintheBulgarian production
interest, special account shallbetaken oftheinterest oftheregion. Ifanadequate undertaking isnot
offered promptly orthesituation setoutinArticle 29paragraph (9)apply, aprovisional ordefinitive
countervailing dutymaybeimposed toalimited specific producers orexporters.
(7) Theprovisions ofparagraphs (3)and(4)ofArticle 14shallapply tothisArticle.
(8) Theinterest oftheBulgarian industry isdetermined bytaking account of:
1. Theinterest oftheBulgarian producers, traders andconsumers asawhole;
2. Thenecessity ofeliminating thenegative effect ofdumping andsubsidies ontrade,
andtheneedofrecovering theterms ofconcurrence.
(9) Anti-dumping andcountervailing measures shallbeapplied incaseofinterest forthe
“Bulgarian industry ”.
Article 17.(1) Aninvestigation todetermine theexistence, degree andeffect ofanyalleged
dumping orsubsidy shallbeinitiated uponawritten complaint byanynatural orlegalperson, orany
association nothaving legalpersonality, acting onbehalf ofaBulgarian industry, except thecases under
theprovisions ofArticle 18paragraph (2).G/ADP/N/1/BGR/1
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(2) Thecomplaint referred toin(1)above shallbesubmitted totheminister oftrade and
shallcontain sufficient evidence oftheexistence ofdumping orsubsidization aswellastheinjury
resulting therefrom.
(3) Thecomplaint shallcontain theinformation possessed bythecomplainant about the
following:
1. Identity andaddress ofthecomplainant;
2. Acomplete description ofthevolume andvalue ofthedomestic production ofthelike
product bytheapplicant.
3. Where awritten application ismade onbehalf ofthedomestic industry, theapplication
shallidentify theindustry onbehalf ofwhich theapplication ismade byalistofallknown domestic
producers ofthelikeproduct (orassociations ofdomestic producers ofthelikeproduct) and,tothe
extend possible, adescription ofthevolume andthevalue ofdomestic production ofthelikeproduct
accounted forbysuchproducers.
4. Acomplete description oftheallegedly dumped product, thenames ofthecountry
orcountries oforigin orexport inquestion, theidentity ofeachknown exporter orforeign producer
aswellasalistofknown persons importing theproduct inquestion.
5. Information onthedevelopment ofthevolume oftheallegedly dumped import, its
influence onthese imports onprices ofthelikeproduct inthedomestic market andtheconsequent
impact oftheimports onthedomestic industry asdemonstrated byrelevant factor andindices having
abearing onthestateofthedomestic industry suchasthose inArticle 13paragraphs (1),(2),(4)and
(5).
(4) Incases ofanyalleged dumping thecomplaint shallalsocontain thefollowing:
1. Information onprices atwhich theproduct inquestion issold, when destined for
consumption inthedomestic market ofthecountry orcountries oforigin orexport, or
2. Information ontheprices atwhere theproduct issoldcountry orcountries oforigin
orexport toathirdcountry orcountries orontheconstructed value oftheproduct, and
3. Information onexport prices or,where appropriate ontheprices atwhich theproduct
isfirstresold toanindependent buyer intheRepublic ofBulgaria.
(5) Incases ofalleged countervailable subsidy thecomplaint under paragraph (1)shall
alsocontain evidence withregard totheexistence, amount andnature ofthesubsidy inquestion.
(6) Aninvestigation maybeinitiated when thereissufficient evidence andafterexamination
oftheiraccuracy andadequacy.
Article 18.(1) Aninvestigation shallnotbeinitiated unless ithasbeendetermined, onthebasis
ofanexamination astothedegree ofsupport for,oropposition to,thecomplaint expressed bythe
Bulgarian producers ofthelikeproduct, thatthecomplaint hasbeenmade byoronbehalf ofthe
Bulgarian industry.G/ADP/N/1/BGR/1
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(2) Thecomplaint shallbeconsidered tohavebeenmade byoronbehalf oftheBulgarian
industry ifitissupported bythose Bulgarian producers whose collective output constitutes more than
50%ofthetotalproduction ofthelikeproduct produced bythatportion oftheBulgarian industry
expressing either support fororopposition tothecomplaint.
(3) Noinvestigation shallbeinitiated when Bulgarian producers expressly supporting the
complaint account forlessthan25%oftotalproduction ofthelikeproduct produced bytheBulgarian
industry.
Article 19.(1) Aninvestigation maybeinitiated inorder to:
1. Determine whether ornotthealleged subsidies arespecific within themeaning of
Article 9paragraphs (1),(2)and(3);
2. Inrespect ofsubsidies non-countervailable according toArticle 10paragraphs (2),(3)
and(4)inorder todetermine whether ornottheconditions laiddown inthose paragraphs havebeen
met;
3. Inrespect ofmeasures ofthetypelisted inAnnex 2oftheWTO Agreement on
Agriculture totheextent thattheycontain anelement ofsubsidy asdefined byArticle 8,inorder to
determine whether themeasures inquestion fullyconform totheprovisions ofAnnex 2.
(2) Ifasubsidy isgranted pursuant toasubsidy programme which hasbeennotified in
advance ofitsimplementation totheWTO Committee onSubsidies andCountervailing Measures in
accordance withtheprovisions ofArticle 8oftheSubsidies Agreement, andinrespect ofwhich the
Committee hasfailed todetermined thattherelevant conditions laiddown inArticle 8oftheSubsidies
Agreement havenotbeenmet,aninvestigation shallnotbeinitiated.
(3) Paragraph (2)ofthisRegulation shallnotbeapplied when aviolation ofArticle 8of
theSubsidiesAgreementhasbeenascertainedbythecompetentWTODisputeSettlementBodyorthrough
arbitration asprovided inArticle 8(5)oftheSubsidies Agreement.
Article 20.(1) Until adecision hasbeenmade toinitiate aninvestigation, anypublicizing of
thecomplaint fortheinitiation ofaninvestigation shallbeavoided. However, assoonaspossible after
thereceipt ofaproperly documented complaint andinanyevent before theinitiation ofaninvestigation
anotification shallbegiven to:
1. Thegovernment ofthecountry ofexport alleged tobedumped import;
2. Incases ofalleged subsidized import -thegovernment ofthecountry oforigin and/or
export, andthisgovernment shallbeinvited forconsultations withtheaimofclarifying thesituation
andarriving atamutually agreed solution.
(2) Ifinspecialcircumstancesitisdecidedtoinitiateaninvestigationwithouthavingreceived
awritten complaint fortheinitiation ofsuchinvestigation, thisshallbedoneonthebasisofsufficient
evidence oftheexistence ofdumping orcountervailable subsidy, injury andcausal link,asdescribed
inArticle 17paragraphs (2)and(3),tojustify theinitiation oftheinvestigation.
(3) Theevidence ofbothdumping orsubsidy andinjury shallbeconsidered simultaneously
inthedecision whether ornottoinitiate aninvestigation.G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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Article 21.(1) When thecomplaint notsuittherequirements under Article 17paragraphs (2),
(3)and(4),thecomplainant shallbenoticed forclearing theirregularities in30daysperiod. Otherwise
thecomplaint shallnotbeconsidered andsendbacktothecomplainant.
(2) Acomplaint shallberejected where there isinsufficient evidence ofeither dumped
andsubsidized import orofinjury tojustify initiating proceedings, forwhich thecomplainant shall
beinformed within 45daysperiod ofthedateonwhich thecomplaint islodged.
(3) Proceedings shallnotbeinitiated against countries thedumped orsubsidized import
fromwhich isconsidered negligible asitisbelow 3%ofthetotalimport oflikeproduct intotheRepublic
ofBulgaria, unless suchcountries theimport ofeachoneofthemisbelow 3%butcollectively accounts
more than7%ofthetotalimport oflikeproduct intotheRepublic ofBulgaria.
(4) Thecomplaint maybewithdrawn priortoinitiation oftheinvestigation, inwhich case
itshallbeconsidered nottohavebeenlodged.
Article 22.(1) Theprocedure oninvestigation ofdumped orsubsidized imports, hereinafter
referred toas“investigation ”,shallbeinitiated upon Decision oftheCouncil ofMinisters following
Proposal oftheMinister oftrade in45daysperiod from thedateofthecomplaint.
(2) Thisdecision shallbepublished intheState Gazette which:
1. Notify theconstitution oftheprocedure;
2. Specify theproduct andthecountry concerned;
3. Givesummary oftheinformation submitted andpoint outthattheinformation related
totheprocedure shallbesubmitted totheMinistry ofTrade andForeign Economic Co-operation;
4. Determinethetimelimitsfortherespectiveinterestedpartiestodeclaretheirparticipation
intheprocedure andtopresent inwriting allcommands andinformation tobeconsidered inthe
investigation inquestion;
5. Determine thetime-limits fortheinterested parties formaking theirviews known in
accordance withArticle 25paragraph (5).
(3) After publishing thenotice under paragraph (2)andsuiting therequirements for
confidential information thefulltextofthecomplaint under Article 17paragraph (1)shallbesubmitted
totheknown exporters andbodies inthecountry ofexport or/and origin, andtotheinterested parties
ontheirexplicit request.
(4) Ananti-dumping orcountervailing investigation shallnothinder theprocedures of
customs clearance oftheproduct concerned.
Article 23.(1) Forthecarrying outoftheinvestigation, theMinister oftrade shallauthorize
aCommission,uponproposalsbyministersanddirectorsofadministrativebodies,whichistodetermine
theexistence ofdumping orsubsidization andreferred hereinafter as“TheCommission ”.G/ADP/N/1/BGR/1
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(2) TheCommission shall:
1. Seekevidence andinformation itdeems tobenecessary forthecarrying outofthe
investigation;
2. Examine andverify thedatasupplied bytheinterested parties;
3. Wherenecessary,carryoutinvestigationandinspectionincludingthoseunderArticle25
paragraph (8);
4. Inspect therecords keptbytheimporters, exporters, traders, agents, producers, trade
organizations andassociations;
5. Verify theaccuracy oftheinformation fordumping orsubsidies andinjury fromthem.
(3) Decisions oftheCommission providing provisional andfinalduties, acceptance of
guarantees under Article 29orpreclusion oftheproceedings under Article 30,shallbeaffirmed by
Ordinance oftheMinister oftrade.
(4) Officials oftheinterested ministries andbodies shallassist thecommission inexecution
ofitsfunctions referred toinparagraph (2)above.
Article 24.(1) Subject tosuchinvestigation shallbesimultaneously thedumping orsubsidization
andtheinjury therefrom.
(2) Inorder toberepresentative theresult oftheinvestigation thefollowing periods for
theinvestigation shallbedetermined:
1. Incases ofdumping theperiod shallbenotlessthan6months before theinitiating
theproceedings;
2. Incases ofsubsidization theperiod referred toinArticle 11paragraph (1)isapplied.
(3) Noinformationfromtheperiodaftertheinvestigationperiodshallbetakenintoaccount.
(4) TheCouncil ofMinisters mayimpose aspecial automatic licensing regime onimport
inregard totheconduction oftheinvestigation procedure ondumped andsubsidized imports.
Article 25.(1) Interested parties shallbegiven notice oftheinformation which theauthorities
require andample opportunity topresent inwriting allevidence which theyconsider relevant inrespect
oftheinvestigation inquestion.
(2) Exporters orforeign producers, orincases ofsubsidized import-the corresponding
party shallbegiven atleast30daystoreply tothequestionnaires usedintheinvestigation procedures.
Asageneral rulethetime-limit forexporters shall becounted from thedateofreceipt ofthe
questionnaire, which forthispurpose shallbedeemed tohavebeenreceived oneweek fromthedate
onwhich itwassenttotherespondent ortransmitted totheappropriate diplomatic representatives of
theexporting country orthecountry oforigin. Dueconsideration should begiven toanyrequest for
anextension ofthe30-day period and,uponcause shown, suchanextension should begranted whenever
practicable.G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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(3) Subject totherequirement toprotect confidential information, evidence presented in
writing byoneinterested party shall bemade available promptly toother interested Members,
participating intheinvestigation.
(4) Opportunities shall, onrequest, beprovided fortheinterested parties which havemade
themselves known inaccordance withArticle 22,paragraph (2),sub-paragraph 4,tomeetthose parties
withadverse interests, sothatopposing views maybepresented andrebuttal arguments offered. There
shallbenoobligation ofanyparty toattend ameeting, andfailure todososhallnotbeprejudicial
tothatparty’scase. Oralinformation provided under thisparagraph shallbetaken intoaccount in
sofaritissubsequently confirmed inwriting.
(5) TheinterestedpartieswhichhavemadethemselvesknowninaccordancewithArticle22,
paragraph (2),sub-paragraph 4shallbeheard iftheyhave,within theperiod prescribed inthenotice,
havemade awritten request forthat(ahearing showing thattheyareaninterested party likely tobe
affected byaresult oftheproceeding andthatthere areparticular reasons whytheyshould beheard).
(6) Theinterested parties may, upon request, inspect allinformation made available by
anyparty toaninvestigation, asdistinct frominternal documents, which isrelevant tothepresentation
oftheircases andnotconfidential andthatisusedintheinvestigation. Such parties mayrespond to
suchinformation andtheir comments shall betaken intoconsideration, wherever aresufficiently
substantiated intheresponse.
(7) Except inthecircumstances provided forinparagraphs (9)and(10),theinformation
which issupplied byinterested parties anduponwhich findings arebased shallbeexamined foraccuracy
asfaraspossible.
(8) Theinvestigating authorities maycarry outallnecessary checks andinspections on
theterritory ofathirdcountry, provided thattheconcerned parties inquestion givetheirconsent and
thatthegovernment ofthecountry inquestion hasbeenofficially notified andraises noobjection.
(9) Incases inwhich anyinterested party concerned refuses access to,orotherwise does
notprovide, necessary information within areasonable period orsignificantly impedes theinvestigation,
preliminary andfinaldeterminations, affirmative ornegative, maybemade onthebasis ofthefacts
available. Where itisfound thatanyinterested party hassupplied falseormisleading information
theinformation shallbedisregarded andusemaybemade ofthefactsavailable.
(10) Interested parties should bemade aware oftheconsequences ofnon-cooperation. If
aninterested party doesnotcooperate, oronlycooperates partially, andthusrelevant information is
being withheld, theresult could belessfavourable totheparty thatifithadcooperated.
(11) Ifdeterminations, including those withrespect totheamount ofthenormal value or
thevalue ofthesubsidy, arebased ontheprovisions ofparagraphs (9)and(10),including theinformation
supplied inthecomplaint, itshould, where practicable andwithdueregard tothetimelimits ofthe
investigation, bechecked byreference toinformation fromother independent sources which maybe
available suchaspublished price lists, official import statistics andcustoms returns, orinformation
obtained from other interested parties during investigation.
(12) Theauthorities shall, before afinaldetermination ismade, inform allinterested parties
oftheessential facts under consideration which form thebasis forthedecision whether toapply
provisional orfinalmeasures, ortermination oftheinvestigation procedure.G/ADP/N/1/BGR/1
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(13) Final disclosure shallbegiven inwriting totheinterested parties notlaterthan1month
priortothedateofdetermination ofthedutyorthetermination oftheinvestigation without imposition
ofaduty.
Article 26.(1) Forthepurpose ofthisRegulation “interested parties ”are:
1. Anexporter orforeign producer ortheimporter ofaproduct subject toinvestigation,
oratrade orbusiness association amajority ofthemembers ofwhich areproducers, exporters or
importers ofsuchproduct; and
2. ABulgarian producer ofthelikeproduct oratrade orbusiness association amajority
ofthemembers ofwhich produce thelikeproduct inBulgaria.
(2) Inanti-dumping investigation procedures aninterested party maybetheGovernment
oftheexporting country.
Article 27.(1) Forproceedings initiated pursuant toArticle 22,paragraph (1),aninvestigation
shallbeconcluded within oneyear.
(2) Where thecircumstances sorequire theCouncil ofMinisters mayprolong thetime
limitunder paragraph (1)upto18months.
Article 28.(1) Provisional anti-dumping andcountervailing measures maybeapplied, if:
1. Proceedings have been initiated inaccordance withtheprovisions ofArticle 22,
paragraph (1);
2. ApublicnoticehavegivenadequateopportunitiestosubmitinformationunderArticle22,
paragraph (2);
3. Interested parties havebeengiven adequate opportunities tosubmit information and
make comments;
4. Preliminary affirmative determination hasbeenmade thattheimported product benefits
fromcountervailing subsidies orisbeing dumped andofconsequent injury totheBulgarian industry;
5. Theauthorities concerned judge suchmeasures necessary toprevent injury being caused
during theinvestigation.
(2) Anti-dumping orcountervailing duties shallbeimposed uponDecision oftheCouncil
ofMinisters following Proposal oftheMinister oftrade andforeign economic cooperation.
(3) Provisional measures maytaketheform ofaprovisional dutyorasecurity- bycash
deposit orbond. Theamount oftheprovisional dutyshallnotexceed:
1. Thetotalamount oftheprovisionally estimated margin ofdumping, which maybe
lessthanthatamount, ifitisanadequate provisional measure toremove theinjury totheBulgarian
industry;
2. Thepreliminary calculated amount ofsubsidization, subject tocountervailing, ifitis
adequate toremove theinjury, caused totheBulgarian industry.G/ADP/N/1/BGR/1
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(4) Importofproduct,subjecttoprovisionalanti-dumpingorcountervailingdutyinBulgaria
shallbeconditional upon theprovision ofaform ofsecurity.
(5) Provisional measures shallnotbeapplied sooner than60daysfromthedateofinitiation
oftheinvestigation.
(6) Theapplication ofprovisional measures shallbelimited toasshortperiod aspossible,
notexceeding 4months, orondecision oftheauthorities concerned, upon request byexporters
representing asignificant percentage ofthetradeinvolved, toaperiod notexceeding sixmonths. When
authorities, inthecourse ofaninvestigation, examine whether adutylower thanthemargin ofdumping
would besufficient toremove injury, these periods maybesixandninemonths respectively.
(7) Provisionalcountervailingdutiesshallbeappliedforaperiodnotmorethanfourmonths.
Article29.(1)Investigationmaybeterminatedwithouttheimpositionofprovisionalordefinitive
duties uponacceptance ofsatisfactory voluntary undertakings, accepted bythecommission under which:
1. Incasesofdumpedimportanyexporterundertakestoreviseitspricesortoceaseexports
totheareainquestion aslongassuchexports arebeing dumped, sothattheinjurious effect ofthe
dumping iseliminated.
2. Incases ofsubsidized import:
(a) thegovernment ofthecountry oforigin and/or export agrees toeliminate orlimitthe
subsidy ortakeother measures concerning itseffects; or
(b) theexporterundertakestoreviseitspricesifthecommissionissatisfiedthattheinjurious
effect ofthesubsidy isremoved.
(2) Priceincreasesunderparagraph(1),sub-paragraph1andparagraph(1),sub-paragraph2
(b)shallnotbehigher thannecessary tooffset theamount ofdumped margin, respectively theamount
ofcountervailing subsidies, andshould belessthantheamount ofthelatter, ifsuchincreases would
beadequate toremove theinjury totheBulgarian industry.
(3) Undertakings maybesuggested bythecommission, butnogovernment orexporter
shallbeobliged toenterintosuchundertaking. However, thefactthatthethecommission mayconsider
thatathreat ofinjury ismore likely toberealized ifthedumped orsubsidized imports continue.
(4) Undertakings shallnotbesought oraccepted from governments orexporters unless
aprovisional affirmative determination ofsubsidization ordumping andinjury caused bythem have
beenmade.
(5) Undertakings offered neednotbeaccepted iftheiracceptance isconsidered impractical,
forexample, ifthenumber ofactual orpotential exporters istoogreat, orforother reasons, including
reasons ofgeneral policy.
(6) Incases under paragraph (5)theexporters areinformed fortherefusal.
(7) Despite theacceptance ofundertakings, theinvestigation ofsubsidization ordumping
andtheinjury, caused bythem shall beprolonged ifrequired byexporters orbydecision ofthe
commission. Insuchcases:G/ADP/N/1/BGR/1
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1. Ifanegativedeterminationofsubsidization,dumpingorinjuryismade,theundertakings
shallautomatically lapseexcept incases where suchadetermination isdueinlargeparttotheexistence
ofanundertaking; insuchcases thecommission mayrequire thatanundertaking bemaintained for
areasonable period;
2. Incaseofaffirmative determination theundertaking shallcontinue consistent withits
terms andtheprovisions ofthisregulation.
(8) TheCommissionshallrequireanyexporterfromwhomundertakingshavebeenaccepted
toprovide periodically information relevant tothefulfilment ofsuchundertaking, andtopermit
verification ofpertinent data.Non-compliance withsuchrequirements shallbeconstrued asaviolation
oftheundertaking.
(9) Incaseofviolation ofundertakings byanyparty adefinite dutyshallbeimposed on
thebasisofthefactsledtotheundertaking. Inthesecases finalduties maybeimposed ongoods, which
import foruseis90daysbefore theimposition oftheprovisional duty, butnotforthese, imported
before theundertaking wasnotfulfilled.
Article 30.(1) Where thecomplaint iswithdrawn, proceedings maybeterminated unless there
is:
1. Acceptance oftheundertaking under theprovisions ofArt.29 or
2. Termination incaseof:
(a) during thecourse ofinvestigation ithasbeendetermined thatthecomplaint doesnot
include reasons forimplementing anymeasures;
(b) withdrawal ofthecomplaint unless suchtermination would notbeintheBulgarian
industry interest;
(c) theinvestigation resulting inalackofsufficient evidence under theprovisions ofArt.21,
paragraph (2);
(d) either themargin ofdumping ortheamount ofcountervailable subsidy deminimis -
dumped margin nomorethan2%,expressed asapercentage oftheexport price, respectively theamount
ofthesubsidy -notmore than1%advalorem;
(e) thevolume ofdumped orsubsidized imports, actual orpotential, under theprovisions
ofArt.21, paragraph (3)isnegligible.
(2) Forallproceedings initiated pursuant toparagraph (1)investigation shallbeterminated
upon Decision oftheCouncil ofMinisters following Proposal oftheMinister oftrade andforeign
economic cooperation. Apublic notice shallbegiven ofthisdecision andpublished inStateGazette.
Article 31.(1) Where thefactsasfinally established show theexistence ofcountervailable
subsidies, dumping andinjury caused thereby, adefinitive countervailing ordumping dutyshallbe
imposed.G/ADP/N/1/BGR/1
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(2) Anti-dumping andcountervailing dutyshallbeimposed uponDecision oftheCouncil
ofMinisters following Proposal oftheMinister oftradeandforeign economic cooperation andminister
offinance.
(3) TheDecision oftheCouncil ofMinisters shalldefine thetypeandvolume oftheduty,
tariff itemandtariff code, country oforigin and/or country ofexport, application oftheduty. The
decision shalldetermine theduration ofduty, applicable for:
1. Anysupplier orsuppliers,
2. Incaseofmajority ofsuppliers fromoneormore countries andimpossibility theyto
beidentified -forthecountry orthecountries suppliers.
(4) Ifprovisional duties areapplied, theproposition fordetermination ofdefinitive duty
shallbemade notlaterthanonemonth before thetimelimitoftheapplied provisional duty.
(5) Theamount ofdefinitive duties shallnotexceed thedumping margin ortheamount
ofthecountervailing subsidy. Suchdutyshallbelessthantheamount referred toabove ifsuchlesser
dutywould beadequate toremove theinjury totheBulgarian industry.
(6) Where aproduct isimported intotheRepublic ofBulgaria frommorethanonecountry,
anti-dumping orcountervailing dutyshallbelevied atanappropriate amount onanon-discriminatory
basisonallimports ofsuchproduct found tobedumped orsubsidized andcausing injury, other then
imports fromthose sources inrespect ofwhich undertakings havebeenaccepted under theprovisions
ofArt.29.
(7) Where investigation hasbeencarried outpursuant totheprovisions ofArt.36, the
following requirements shallbeabided:
1. Anyanti-dumpingorcountervailingdutyappliedonimportsfromexportersorproducers
notincluded intheshallnotexceed:
(a) theweightedaveragemarginofdumpingorthecountervailingdutyonimportsestablished
withrespect totheselected exporters orproducers, or;
(b)where theliability forpayment ofanti-dumping orthecountervailing dutyiscalculated
onthebasisofaprospective normal value, thedifference between theweighted average normal value
oftheselected exporters orproducers andtheexport prices ofexporters orproducers notindividually
examined.
2. Theauthorities shallapply individual duties ornormal values toimports from any
exporter orproducer notincluded intheexamination whohasprovided thenecessary information during
thecourse ofinvestigation, asprovided forinArt.36, paragraph (3).;
3. Theauthorities shalldisregard forthepurpose ofthisparagraph anyzeroanddeminimis
andmargins established under thecircumstances referred toinArt.25,paragraph (9)and(10).
(8) Anti-dumpingorcountervailingdutyshallbeimposedonadvalorembasissimultaneously
andindependently ofthecustoms duties, taxes andother charges.
(9) Noproduct shallbesubject tobothanti-dumping andcountervailing duties.G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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Article 32.(1) Provisional measures andanti-dumping orcountervailing duties shallonlybe
applied toproducts which enter intheRepublic ofBulgaria forcustoms clearance forentry into
consumption afterthetimewhen thedecision taken fortheirdetermination, respectively, enters into
force, subject totheexceptions setoutinparagraph (2)-(6).
(2) Where aprovisional dutyhasbeenapplied andthefactsasfinally established show
theexistence ofcountervailing subsidy, anti-dumping andinjury, theCouncil ofMinisters shalldecide,
irrespective ofwhether adefinite countervailing oranti-dumping dutyistobeimposed, whatproportion
oftheprovisional dutyistobedefinitely collected.
(3) Forthispurpose “injury ”shallnotinclude material retardation oftheestablishment
oftheBulgarian production oflikeproduct, northreat ofmaterial injury, except where itisfound
thatthiswould, intheabsence ofprovisional measures, havedeveloped intomaterial injury toBulgarian
industry.
(4) Ifthedefinitive anti-dumping dutyishigher thantheprovisional dutypaidorpayable,
ortheamount estimated ofthepurpose ofthesecurity, thedifference shallnotbecollected. Ifthe
definitive dutyislower thantheprovisional dutypaidorpayable, ortheamount estimated ofthepurpose
ofthesecurity, thedifference shallbereimburse orthedutyrecalculated ,asthecasemaybe.
(5) Adefinitive countervailing oranti-dumping dutymaybelevied onproducts which were
entered forconsumption notmore than90dayspriortothedateofapplication ofprovisional measures,
when theauthorities determine:
1. Incases ofdumped imports:
(a) there isahistory ofdumping which caused injury orthattheimporter was,orshould
havebeenaware thattheexporter practices dumping andthatsuchdumping would cause injury, and
(b) theinjury iscaused bymassive dumped imports ofaproduct inarelatively short time
which inlightofthetiming andthevolume ofthedumped imports andother circumstances (such as
arapid build-up ofinventories oftheimported products) islikely toseriously undermine theremedial
effect ofthedefinitive anti-dumping dutytobeapplied.
2. Incases ofsubsidized imports:
(a) there existcritical circumstances where forthesubsidized product inquestion injury
which isdifficult torepair iscaused bymassive imports inarelatively short period ofaproduct
benefiting from countervailable subsidies under theterms ofthisregulation; and,
(b) where itisdeemed necessary, inorder topreclude therecurrence ofsuchinjury, to
assess countervailing duties retroactively onthose imports.
(6) Incases ofviolation orwithdrawal ofundertakings definite duties maybelevied in
accordance withthisregulation ongoods entered forconsumption notmore than90daysbefore the
application ofprovisional measures provided thatnosuchmeasures shallbeapplied prior tothedate
ofinitiation oftheinvestigation orbefore theviolation orwithdrawal ofundertaking.
Article 33.(1) Acountervailing oranti-dumping measure shallremain inforce onlyaslong
asandtotheextend necessary tocounteract thecountervailable subsidies oranti-dumping duties which
cause injury.G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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(2) Definite anti-dumping andcountervailing duties areimposed andundertakings are
accepted foraperiod notexceeding 5years. Incaseofreview, theperiod ofvalidity shallbeconsidered
tobegin fromthedateofthepublication ofDecision oftheCouncil ofMinisters bywhich theimposed
duties areamended.
(3) Sixmonths before theexpiration oftheperiod setoutfortheduration ofduties, apublic
notice shallbepublished inaState Gazette.
(4) An“expiry review ”shallbeinitiated where theduration ofduties expire either exofficio
orpursuant toarequest byoronbehalf oftheBulgarian industry, deposited afterthepublic notice
under paragraph (3),butnotlaterthan3months before theendofthefinaltermandsupported by
evidence. Duties shallbeactually inpower untiltheendofinvestigation.
(5) Underthissection,apublicnoticeofimpendingexpiryofanti-dumpingorcountervailing
duties shallbepublished inState Gazette.
(6) Theneedforthecontinued imposition ofmeasures onthecircumstances under which
theyhavebeenimposed mayalsobesubject toaninterim review (interim review ).
(7) Thereview under paragraph (6)shallbecarried outautomatically, orprovided that
areasonable period oftimeatleastoneyearhaselapsed since theimposition ofthedefinite measure,
upon arequest byanyexporter, importer orBulgarian producers, supported bysufficient evidence
sustaining theneedforsuchaninterim review.
(8) Aninterim review shallbeinitiated where therequest contains sufficient evidence
that:
1. Thecontinued imposition ofthemeasure isnolonger necessary tooffset and/or
2. Theinjury would beunlikely tocontinue orrecur ifthemeasure were removed or
varied, or
3. Theexisting measure isnot,orisnolonger, sufficient tocounteract thecountervailing
oranti-dumping duty, which iscausing injury.
(9) Reviews fordetermination ofindividual dumping margin shallbeinitiated forinitial
exporters from thecountry ofexport, whohave notexported theproduct forthetimelimit of
investigation, if:
1. They arenotrelated totheexporters orproducers inthecountry ofexport, subject
toanti-dumping duty, or
2. Their export fortheRepublic ofBulgaria isrealized aftertheperiod ofinvestigation;
or,
3. Prove thattheyhaveundertaken anirrevocable contract obligation forexport ofgreat
quantity oftherelated product intheRepublic ofBulgaria.
(10) Withinitiation ofthereview procedures under paragraph (9),TheCouncil ofMinisters
shalladopt regulations foramendments oftheregulation fordefining oftheanti-dumping duty, where
itisrevoked fortheinitial exporters under paragraph (9).G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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(11) Thereview proceedings shallbeinitiated byadecision oftheCouncil ofMinisters
following aproposal oftheminister oftrade andforeign economic cooperation andshallbecarried
outunder general procedure. Dependent ontheresults, theregulations oftheCouncil ofMinisters
maybeamended orrevoked.
(12) Thereview shallbecarried outintheshortest terms acceptable, butnotmore than
12months from thedateofitsinitiation.
Article 34.(1) Anti-dumping orcountervailing duties imposed pursuant tothisregulation may
beextended toapply toimports from third countries oflikeproducts, orparts thereof, when
circumvention ofthemeasures inforce istaking place. Circumvention shallbedefined as:
1. Achange inthepattern oftradebetween thirdcountries andtheRepublic ofBulgaria,
theduecause forwhich istheimposed duty;
2. There isevidence thattheremedial effects ofthedutyarebeing undermined, interms
oftheprices;
3. Theimportedlikeproductsorpartsthereofstillbenefitfromtheanti-dumpingorsubsidy.
(2) Investigation shallbeinitiated pursuant tothisarticle upon adecision oftheCouncil
ofMinisters where sufficient evidence exists forcircumvention pursuant toparagraph (1). The
investigation shallbecarried outunder thegeneral procedure andconcluded within 9months.
Article 35.(1) Theanti-dumping orcountervailing duties shall beimposed under thegeneral
non-preferential rulesoforigin, where acting within theterritory oftheRepublic ofBulgaria, unless
theregulation fordefining therelevant dutydoesnordefine special rules oforigin.
(2) Iftheinterest oftheBulgarian industry calls, theprovisional ordefinite anti-dumping
orcountervailing duties maybesuspended:
1. For9months, which termmaybeprolonged withoneyear;
2. Iftheeconomic circumstances havebeenchanged sothatitisunlikely theinjury to
reappear asaresult ofthesuspension ofduty.
(3) Theapplication ofdutyshallbealways renovated incaseofdisappearance ofthe
circumstances under paragraph (2).
Article 36.(1) Incases where thenumber ofcomplaints, exporters orimporters, types of
product ortransactions islarge, theinvestigation maybelimited to:
1. Reasonable number ofparties, products ortransactions byusing samples which are
statistically valid onthebasis ofinformation available toitatthetimeoftheselection or;
2. Thelargest representative volume oftheproduction, sales orexports which can
reasonably beinvestigated within thetimelimitavailable.
(2) Thefinalselectionofparties,typesofproductsortransactionsmadeunderthesesampling
provisions shallrestwiththeCommission, though preference shallbegiven tochoosing asample in
consultation withtheparties concerned.G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
Page27
(3) Incases where theexamination hasbeenlimited under theprovisions ofparagraph (1),
anindividualamountofcountervailablesubsidizationordumpingmarginshall,nevertheless,becalculated
foranyexporter orproducer notinitially selected whosubmits thenecessary information within the
timelimits provided forinthisregulation.
(4) Theprovisions ofparagraph (3)shallnotbeapplicable where thenumber ofexporters
orproducers issolargethatindividual examination would beunduly burdensome andprevent thetimely
completion oftheinvestigation.
Article 37.(1) Information received pursuant tothisRegulation shallbeusedonlyforthe
purposes forwhich ithasbeenrequested.
(2) Forthepurposes ofthisRegulation, “confidential information ”shallmean:
1. Anyinformation disclosure ofwhich willconstitute abenefit forrivals orislikely to
haveasignificantly aversive effect upon thesupplier, orthesource ofsuchinformation;
2. Anyinformation received pursuant tothisRegulation forwhich confidential treatment
hasbeenrequestedbyitssupplierandshallnotberevealedwithoutspecificpermissionfromthesupplier.
(3) Interested parties providing confidential information shall berequired tofurnish
non-confidential summaries thereof. These summaries shallbeinsufficient detail topermit areasonable
understandingofthesubstanceoftheinformationsubmittedinconfidence.Inexceptionalcircumstances,
suchparties mayindicate thatsuchinformation isnotsusceptible ofsummary. Insuchexceptional
circumstances, astatement ofthereasons whysummarization isnotpossible must beprovided.
(4) Iftheauthoritiesfindthatarequestforconfidentialityisnotwarrantedandifthesupplier
oftheinformation iseither unwilling tomake theinformation public ortoauthorize itsdisclosure in
generalized orsummary form, theauthorities maydisregard such information unless itcanbe
demonstrated totheirsatisfaction from appropriate source thattheinformation iscorrect.
(5) Paragraph (1)-(4) shall notpreclude thedisclosure ofgeneral information bythe
competentauthoritiessofarasisnecessarytoexplainthosereasonsincourtproceedings.Suchdisclosure
musttakeintoaccount thelegitimate interest oftheparties concerned thattheirbusiness secrets should
notbedivulged.
(6) Theinformation under paragraph (2),sub-paragraph 2shallnotberevealed without
specific written permission from thesupplier.
Article 38.(1) Theadministrative actsoractivities related totheprocedure, initiated andcarried
outpursuant totheprovisions ofthatregulation, shallbeappealed under theLawonadministrative
procedure.
(2) ThelegalactsofthecouncilofMinisters,adoptedundertheprovisionsofthisregulation,
shallbeappealed under thegeneral procedure.G/ADP/N/1/BGR/1
G/SCM/N/1/BGR/1
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FINAL PROVISIONS
§1.ThisRegulationrepealsRegulationNo.181oftheCouncilofMinistersof1993onprotection
ofthedomestic market against dumped orsubsidized imports (State Gazette No.81/1993).
§2.Thecontrol fortheimplementation ofthisRegulation isgiven totheMinister ofTrade
andForeign Economic Cooperation andtheMinister ofFinance
§3.ThisRegulation shallenter intoforce 14daysafteritspublication intheState Gazette.