WORLD TRADE
ORGANIZATIONG/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
6 May 2003
(03-2415)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Replies by the DOMINICAN REPUBLIC1 to the Questions Posed by the
EUROPEAN UNION2 and the UNITED STATES3
The following communication, dated 2 May 2003, has been received from the Permanent
Mission of the Dominican Republic.
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Q1. The last paragraph of Article 6 of the law on unfair trade practices and safeguard
measures ("the law") provides that procedural or particular situations that are not clearly andspecifically covered by the WTO Agreement shal l be regulated on a supplementary basis by
administrative or other legislation.  Has such legislation been adopted by the Dominican
Republic?
Reply
The procedural aspects refered to in the above-mentioned paragraph of Law No. 1-02 are
indicated in Article 88 and refer to Law No. 1494 establishing administrative courts, including the
Higher Administrative Court, which was adopted in August 1947.
Q2. Article 10 of the law sets out the rule s for the determination of normal value.
• Could the Dominican Republic explain how the reference in (a) to the "highest,
representative and comparable price of the like product when  exported to a
third country" is to be understood?
Reply
This is interpreted according to the spirit and the provisions of the ADA, based on the criteria
specified in Article 2.2 and subparagraphs of the Agreement, and in Article 6, paragraph 1(b)(i), of
the GATT 1994.
                                                     
1 G/ADP/N/1/DOM/3-G/SCM/N/1/DOM/3.
2 G/ADP/Q1/DOM/1-G/SCM/Q1/DOM/1.
3 G/ADP/Q1/DOM/2-G/SCM/Q1/DOM/2.G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
Page 2
• Littera (b) explicitly refers to the Anti-Dumping Agreement ("ADA") for details
regarding the calculation of profit, but not for the calculation of SG&A.  Could
the Dominican Republic confirm that with regard to SG&A Article 2.2.2 ADA
will be respected?
Reply
This is confirmed.
• Article 10, first paragraph is not entirely clear, at least in the English version.
Could the Dominican Republic please clarify the meaning of this provision andits compliance with Article 2.2 and footnote 2 ADA?
Reply
For the purpose of constructing normal value under Article 10, first paragraph, the
investigating authority adheres to the provisions and parameters set out in Article 2.2, footnote 2, of
the ADA.
Q3. Article 12 of the law incorporates Article 2.4 ADA with the exception of the last sentence
thereof.  Could the Dominican Republic confirm that this latter provision will also be respected?
Reply
Yes, the Dominican Republic respects this provision.  The procedure will be based on due
process and reasonable criteria for the parties concerned.
Q4. Does the Dominican Republic have rules on the methods of comparison as laid down in
Article 2.4.2 ADA?
Reply
The investigating authority uses the methods provided for in Article 2.4.2 of the ADA.
Q5. Could the Dominican Republic confirm that Article 13 of the law sets out the rules of
Article 2.2.1 and footnote 5 ADA and that differences in wording are unintended and only due
to translation?
Reply
The provisions of Article 13 of the law are governed by the rules of Article 2.2.1 of the ADA,
which means, as we see it, that there was a translation problem.
Q6. Could the Dominican Republic confirm that the definition of material injury laid down
in Article 18 of the law is to be understood in the light of the ADA and the interpretations givenin the context of the DSU?
Reply
This definition is to be understood in the sense indicated in your question.G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
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Q7. Article 21 (b) of the law does not seem to require that price undercutting is significant
nor that the effect of imports is to depress prices to a significant degree or prevent price
increases which otherwise would have occurred, to a significant degree.  Could the Dominican
Republic please confirm that in spite of these differences in wording Article 3.2 ADA will be
fully respected?
Reply
The Dominican Republic confirms that the essential provisions of Article 3.2 of the ADA will
be respected.
Q8. Could the Dominican Republic confirm that, to determine the impact of dumped
imports on the domestic industry, it shall examine all factors listed in Article 3.4 ADA, including
e.g. wages, growth and investments which are not mentioned in Article 22 of the law?
Reply
The same paragraph provides that the list of factors is not exhaustive, and the provisions of
Article 3.4 of the ADA are applied.
Q9. Article 23 of the law defines the factors to be considered when determining the existence
of a threat of material injury.  Could the Domi nican Republic confirm that the rate of increase
of dumped imports has to be significant (b); that it should be established that the imports will
have a significant depressing or suppressing effect on prices (d); that the totality of the factorsmust lead to the conclusion that further dumped imports are imminent and that, unless
protective action is taken, material injury  would occur, in accordance with Article 3.7 ADA?
Reply
Article 23, paragraph, states that no one of the factors listed in the article will by itself
necessarily be sufficient to make a final determination, and the criterion laid down in Article 3.7 of
the ADA is applied, i.e. that the totality of the factors must lead to the conclusion that further dumped
imports are imminent and that, unless protective action is taken, material injury would occur.
Q10. Article 27 of the law provides the possibility to divide the territory of the Dominican
Republic into two or more competitive markets for the purpose of defining the domestic
industry.
• Could the Dominican Republic confirm that this possibility would only apply in
exceptional circumstances, in accordance with Article 4.1(ii) ADA?
Reply
It is confirmed that this possibility would be based on respect for Article 4.1(ii) of the ADA.
• Does the Dominican Republic consider that Article 27 (d) of the law, requiring
injury to more than 50  per cent of th e production in an isolated market,
complies with the terms "injury to all or almost all of the production within such
market" of Article 4.1(ii) ADA?G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
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Reply
Yes.
• How is compliance with Article 4.2 ADA ensured?
Reply
It is confirmed that the provisions of Ar ticle 4.2 of the ADA will be applied where
appropriate.
Q11. Could the Dominican Republic confirm that Article 36 of the law has to be understood
in such way that the information of the govern ment of the exporting member concerned will
take place after receipt of a properly docume nted application, but before initiation of an
investigation, in accordance with Article 5.5 ADA?
Reply
In principle, the provisions of Article 5.5 of the ADA would be applicable.
Q12. Could the Dominican Republic confirm that it respects the provisions of Article 12.1,
12.2.1, 12.2.2 and 12.2.3 ADA and the second and third sentence of Article 12.2 ADA regardingpublic notices?  Would a public notice concerning th e initiation of the investigation also contain
information on the basis on which dumping is alleged in the application, in accordance with
Article 12.1.1(iii) ADA, although this is not mentioned in Article 37 of the law?
Reply
Law No. 1-02 contains explicit provisions regarding the various notification procedures for
purposes of transparency and due process.  Notifications shall contain all data of relevance for
purposes of the resolutions, including the provisions of Article 12 of the ADA.
Q13. The provisions of Article 6 ADA are only very summarily reflected in the law.  Does the
Dominican Republic have more detailed rules on evidence, or is Article 6 ADA directly applied?
Reply
Article 6 of the ADA is directly applied.
Q14. Article 45 of the law sets out rules on provisional measures but does not seem to contain
all the conditions of Article 7.1 ADA (prior public notice of the initiation and adequate
opportunities for interested parties to submit  information and make comments - Article 7.1(i)
ADA; preliminary affirmative determination of dumping and consequent injury - Article 7.1(ii)
ADA).  Could the Dominican Republic confirm that these provisions will be fully respected?
Reply
The above-mentioned provision of Article 45 of the Law is governed by all the provisions and
conditions of Article 7.1 of the ADA.G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
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Q15. Could the Dominican Republic confirm that Article 52, second paragraph of the law
should be understood in the light of Article 10.6(i) ADA (history of dumping which caused
injury; importers were aware or should have b een aware that the exporter practised dumping,
and that such dumping would cause injury)?
Reply
Article 52 will be applied in accordan ce with Article 10.6(i) of the ADA.
Q16. Article 54 of the law makes a reference to th e possibility of reviews.  Does the Dominican
Republic have more detailed rules on reviews, in particular with regard to the rules ofArticle 11.1, 11.2, 11.4 and 9.5 ADA or are these provisions directly applied?
Reply
The Dominican Republic directly applies the ADA provisions cited in the question, and
Article 45 does not exclude the possibility of more detailed specifications being drafted subsequently.
Q17. Article 55 of the law provides that the Commission "may authorize" a refund.  Should
this provision, in accordance with Article 9.3.2 ADA, be understood as "shall authorize" where
the conditions are fulfilled?
Reply
Article 55 authorizes refunds subject to verification of differences between the definitive duty
rates applied, in accordance with Article 9.3.2 of the ADA.
Q18. Does the Dominican Republic have specific rules on sampling, in particular with regard
to the rules of Article 6.10, 6.10.1, 6.10.2 and 9.4 ADA or are these provisions directly applied?
Reply
These provisions are directly applied and the relevant statistical procedures will be followed,
as appropriate to each specific case.
Q19. Article 56 of the law allows the Commission to use the revenue generated by an AD
measure to finance specific programmes for the development and modernisation of the sector in
question.  Can the Dominican Republic please explain how this provision complies with theADA?
Reply
The optional measures specified in the Law are limited by any circumstance or rules of the
World Trade Organization that are applicable.G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
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REPLIES TO THE QUESTIONS POSED BY
THE UNITED STATES
Q1. Article 6, Paragraph of the Law on Unfair Trade Practices and Safeguard Measures of
the Dominican Republic (“AD/CVD Law”) references “administrative or other legislation” of
the Dominican Republic relating to procedural and other matters.  Is there any administrative
or other legislation relevant to the administration of the AD/CVD Law and, if so, will the
Dominican Republic notify it to the Committee?
Reply
There is Law No. 1494 of 2 August 1947, and the amendments thereto, quoted in Article 88
of Law No. 1-02, which establishes administrative courts.
Q2. Article 10(a) of the AD/CVD Law refers to the use of third country prices to establish
normal value and indicates that the authorit ies will use the “highest, representative and
comparable price.”  How is this provision consis tent with the requirements of Article 2.2 of the
AD Agreement?
Reply
Within the meaning of Article VI(b)(i), of the GATT 1994.
Q3. Articles 18 and 19 of the AD/CVD Law define  the terms “material injury” and “threat
of injury”, respectively.  However, the AD/CVD Law uses the term “injury” in several of itsprovisions (i.e. Article 21(c), Article 27, Article 32( b), Article 45), and this term does not appear
to be defined in the law.  Does the term “injury” in those articles mean the same thing as the
terms “material injury” or “threat of injury” as defined in Articles 18 and 19?
Reply
Yes, in accordance with footnote 9 to Article 3 of the ADA.
Q4. Articles 20, 21, 23, 26, 27, and 32 of the AD/CVD Law list factors that the Commission
for the Regulation of Unfair Trade Practices and Safeguard Measures (“the Commission”) is to
consider and/or findings the Commission is  required to make when making certain
determinations in anti-dumping and countervailing duty cases.  Must the Commission considerall listed factors and/or make all listed findings or  is the consideration or finding of just one or a
few of the listed items sufficient?
Reply
The Commission will consider all relevant factors.  Article 21 (paragraph) and Article 22
(paragraph) are explicit on this subject.
Q5. Article 21 of the AD/CVD Law states that anti-dumping and countervailing duties may
be imposed on imports when the Commission determines that imports are being sold in theDominican Republic at prices lower than those of the domestic like product and the imports
have in some way depressed or suppressed domestic prices.  Is the standard articulated in
Article 21 intended to be the same standard articulated in Article 3.2 of the AD Agreement andArticle 15.2 of the SCM Agreement?G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
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Reply
Yes.
Q6. Article 22 of the AD/CVD Law lists factors that the Commission should examine in
determining the impact of the dumped or subsidized imports on the domestic industry, but does
not mention two factors listed in Article 3.4 of the AD Agreement and Article 15.4 of the
SCM Agreement (the actual and potential negative effects on wages and growth).  Article 22
also does not mention evaluation of the magnitude of the dumping margin in anti-dumping
investigations, as required by Article 3.4, and evaluation of any increase in the burden on
government support programmes in subsidy cases involving agricultural products, as required
by Article 15.4.  How does the Dominican Republic intend to address these requirements of
Articles 3.4 and 15.4?
Reply
As indicated in the reply to Question 4, Article 22 (paragraph) states that "the above list of
factors and indices is not exhaustive".  Any formal omission is governed by Article 6 of
Law No. 1-02, maintaining the applicability of Article 3.4 of the Anti-Dumping Agreement and
Article 15.4 of the Agreement on Subsidies and Countervailing Measures.
Q7. Article 35 of the AD/CVD Law refers to the possibility of self-initiation by the
authorities.  Is the language of that provision intended to provide that “clear evidence of
fragmentation of domestic production” is always an exceptional or special circumstance that
would justify initiation without an application?
Reply
The fragmentation of domestic production confirmed by clear evidence is only one of the
factors that could be considered among the exceptional or special circumstances referred to in
Article 35 of the Law.  The conditions and criteria for the application of this article, as specified
therein, have effect without discrimination, as in cases involving investigations that could berequested by interested parties.
Q8. Article 41 of the AD/CVD Law lists the criteria for terminating an investigation, but no
conjunctions follow the individual criteria.  Does Article 41 require that both criteria must be
found before an investigation will be terminated?  If yes, how is this provision consistent withthe requirements of Article 5.8 of the AD Agreement?
Reply
The finding of one of these criteria will entail application of the provisions of Article 5.8.
Q9. There do not appear to be any provisions in the AD/CVD law relating to providing
interested parties with the opportunity to defe nd their interests by meeting with the opposing
parties and providing written and oral information in support of their interests.  In addition,
there do not appear to be provisions providing for the disclosure of the essential facts that will
form the basis of a final determination in sufficient time for the parties to defend their interests.
How does the Dominican Republic intend to implement the requirements of Articles 6.2 and 6.9
of the AD Agreement and Articles 12.1, 12.2, and 12.9 of the SCM Agreement?G/ADP/Q1/DOM/3
G/SCM/Q1/DOM/3
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Reply
The Law contains specific provisions relating to transparency, due process and notifications:
Article 36 and first paragraph;  Article 37 and paragraph;  Articles 38, 39, 40 and paragraph;  46;  47;53;  63 and paragraph;  64;  65;  67 and 74.  The Law excludes none of the possibilities and
opportunities provided for in Articles 6.2 and 6.9 of the Anti-Dumping Agreement and Articles 12.1,
12.2 and 12.9 of the Agreement on Subsidies and Countervailing Measures, including public hearings,
conciliation meetings and technical information hearings, which may be specified at a later date.
Duly accredited interested parties shall have ample and appropriate opportunities for participation in
the different phases of the investigation.
Q10. How does the Dominican Republic intend to implement the notice requirements of
Article 12.2 of the AD Agreement and Article 22.3 of the SCM Agreement with respect to public
notice of preliminary determinations?
Reply
Article 36, first paragraph, applies to all resolutions, including preliminary ones, and various
provisions cited in the reply to question 9 are applicable.
Q11. Article 47 of the AD/CVD law provides that final resolutions by the Commission shall be
enforceable, “regardless of any appeal.”  The AD/CVD law did not appear to provide for
judicial or other appeal of any final resolutions.  Are there other provisions of law that define
the bases for appeal and, if so, what are they?  Also, what is the legal effect of a successful
appeal?
Reply
Article 88 of the Law provides that the Commission's decisions may be appealed before the
Administrative Court.  The above-mentioned Law No. 1494, cited in the reply to question 1, specifies
the administrative appeals available, which include review and revocation.
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