RESTRICTED
WORLD TRADE G/ADP/Q1/THA/5
G/SCM/Q1/THA/5
ORGANIZATION 14April 1997
(97-1576)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from theUNITED STATES
toTHAILAND1
Thefollowingcommunication,dated9April1997,hasbeenreceivedfromthePermanentMission
oftheUnited States.
_______________
1. TheNotification submitted bytheGovernment ofThailand issilent onmany ofthespecific
requirements contained intheAgreements. Isitcorrect toassume thatwherever thedocument issilent
onanissuecovered bytheAgreements, theAgreements willprevail? What legalmechanisms within
Thailand willinsure suchconformity?
2. Article 6.3oftheNotification provides forexclusion ofbelow costsales forpurposes of
determining normal value. Onwhatbasis willaproducer ’s/exporter ’scosts becalculated?
3. Article 6.3(2) oftheNotification provides forcalculation ofconstructed value based uponcost
ofproduction andareasonable amount foradministrative, selling, andgeneral costs andforprofits.
Onwhatbasis willsuchexpenses becalculated?
4. Article 6.3oftheNotification provides forexclusion ofbelow costsalesifitisdetermined
thatsuchsalesaremade within anextended period oftimeinsubstantial quantities andareatprices
which donotpermit recovery ofcosts within areasonable period oftime. What timeperiod willbe
usedtodetermine whether salesaremade “within anextended period oftime?”What portion ofsales
willconstitute “substantial quantities? ”
5. Article 6.6oftheNotification includes aprovision thatpermits departure from thenormal
average-to-average pricecomparisons foranti-dumping purposes when thenormal comparison method
would notreflect thefullamount ofthedumping. Nosuchstandard iscontained inArticle 2.4.2 of
theAgreement, dealing withthissubject. How, andunder whatstandards, would itbedetermined
thatnormal comparison methods would notaccurately reflect thefullamount ofanydumping?
6. HowdoestheActimplement therequirement ofArticle 5.10oftheADAgreement and11.11
oftheSCMAgreement,whichprovidethatabsentspecialcircumstancesinvestigationsshallbecompleted
within oneyear, andinnocasemore thaneighteen months, aftertheirinitiation?
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7. Article 9.3oftheNotification states thatanantidumping proceeding willbeterminated ifthe
dumping margin isdeminimis orthevolume ofimports negligible “asproscribed bytheDepartment
ofForeign Trade. ”Where istherequirement thattheDepartment ofForeign Trade apply thestandards
foridentifying deminimis dumping margins andnegligible import volumes contained inArticle 5.8
oftheADAgreement andArticle 11.9oftheSCM Agreement?
8. Article 8(2)oftheNotification permits producers in"two ormore competitive markets" to
beconsidered separate domestic industries under certain circumstances. Inwhat waydoes the
Notification address therequirements ofArticle 4.1(ii) oftheADAgreement andArticle 16.2ofthe
SCM Agreement thattherebe"aconcentration" ofdumped orsubsidized imports intosuchanisolated
market andthatthese imports be"causing injury totheproducers ofalloralmost alloftheproduction
within suchmarket" before anaffirmative determination ofmaterial injury canbemade?
9. Article 8oftheNotification provides that,incases inwhich thedomestic industry hasbeen
identified onthebasisofanisolated market within theterritory ofThailand, anti-dumping duties may
belevied onalldumped products imported intoThailand where itisnotpracticable tolevyduties solely
onmerchandise consigned forfinalconsumption intheisolated market, orwhere adequate assurances
pursuant toanundertaking havenotbeengiven promptly. Howisthisconsistent withArticle 4.2of
theADagreement which states thatinsuchacasetheimporting country maylevyduties without
limitation onlywhere: (1)application ofduties onlytoimports destined fortheareaisprohibited by
constitutional law,(2)theexporters havebeengiven theopportunity tocease dumped exports tothe
areaunder anundertaking andhavenotprovided prompt andadequate assurances and(3)duties cannot
belevied onlyonspecific producers supplying theareainquestion? Does Article 8oftheNotification
alsoapply tocountervailing duties, aswellasantidumping duties, andinamanner consistent with
Article 16.3oftheSCM Agreement?
10. Article 7.2(1) oftheNotification specifies thattheCommittee shallexamine thevolume of
imported products andtheeffect onprices ofdomestic likeproducts without specifying thatthe
Committee must consider whether anyincreases involume ofimported products are"significant,"
whether anypriceundercutting is"significant," whether prices aredepressed toa"significant degree,"
orwhether imports prevent priceincreases "toasignificant degree," which arerequired byArticle 3.2
oftheADAgreement andArticle 15.2oftheSCM Agreement. HowdoesArticle 7.2(1) include these
requirements oftheADandSCM Agreements?
11. What economic factors orindices willtheCommittee evaluate under Article 7.2(2) ofthe
regulations inexamining theeffects oftheimported products onproducers oflikeproducts inThailand,
andhowissuchanevaluation orexamination consistent withArticle 3.4oftheADAgreement and
Article 15.4oftheSCM Agreement?
12. There isnorequirement intheNotification forconsideration ofthemagnitude ofthedumping
margin inassessing material injury. Howisthisconsistent withArticle 3.4oftheADAgreement?
13. Isthere aprovision inThailand ’slawconsistent withArticle 3.6oftheADAgreement and
Article15.6oftheSCMAgreementregardingexaminationofproductiondataonthebasisoflikeproduct
orthenarrowest group orrange ofproducts?
14. Article9.4oftheNotificationprovidesforverificationofevidenceinanantidumpingproceeding.
What specific procedures willbefollowed inverifying suchevidence? Willverification beconducted
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15. ADAgreement Articles 12.2.1(v) and12.2.2 andSCM Agreement Articles 22.4(v) and22.5
require disclosure of"themainreasons leading tothedetermination" and"thereasons fortheacceptance
orrejection ofrelevant arguments orclaims made ...."Howwillthese requirements besatisfied?
16. Please indicate whether theActimplements thepublic notice andexplanation requirements
ofArticle 12oftheADAgreement andArticle 22oftheSCM Agreement.
17. What legalmechanisms willbeadopted toprovide interested parties withanopportunity to
present evidence andlegalarguments during thecourses ofaninvestigation orreview?
18. Under whatmechanism maycountervailing dutyoranti-dumping dutyorders bechallenged
independently, andaresuchprovisions forreview consistent withSCM Agreement Article 23andAD
Agreement Article 13?
19. Article 15.3states thatantidumping orcountervailing duties mustexpire afterfiveyears unless
thereisafinding thattheexpiry ofadutywould likely leadtoacontinuation orrecurrence ofdumping
orsubsidization. Article 11oftheADAgreement andArticle 21oftheSCM Agreement provide that
suchduties must expire after fiveyears absent afinding thatsuchexpiry would likely leadtoa
continuation orrecurrence ofdumping orsubsidization andinjury .HowdoestheNotification satisfy
these provisions oftheADAgreement andSCM Agreement?
20. TheNotification doesnotappear toimplement therequirement intheSCM Agreement, when
determining whether subsidized imports poseathreat ofmaterial injury, thatthenature ofthesubsidies
beconsidered. How isthisconsistent withArt.15.7oftheSCM Agreement?
21. Under whatprovisions oflawinThailand isjudicial review ofanti-dumping measures provided
for,asrequired byArticle 13oftheAgreement?