RESTRICTED
WORLD TRADE G/ADP/Q1/SVK/2
G/SCM/Q1/SVK/2
ORGANIZATION 8April 1998
(98-1439)
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
totheSLOVAK REPUBLIC1
Thefollowingcommunication,dated6April1998,hasbeenreceivedfromthePermanentMission
oftheUnited States.
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1. TheSlovak Republic ’slawcontains noprovision oncumulation provided forinArticle 3.3
oftheAgreement ontheImplementation ofArticle VIoftheGeneral Agreement onTariffs andTrade
1994(A-D Agreement). Does theSlovak Republic intend topermit cumulation, andifso,under what
circumstances?
2. HowdoestheSlovak Republic assess threat ofmaterial injury? According toArticle 3.7of
theA-DAgreement, adetermination ofathreat ofmaterial injury shallbebased onfactsandnotmerely
onallegation, conjecture orremote possibility. Thatparagraph states thatindetermining threat of
material injury should takeintoaccount suchfactors aswhether there hasbeenasignificant rateof
increase ofdumped imports intothedomestic market indicating thelikelihood ofsubstantially increased
importation: whether there issufficient freely disposable, oranimminent, substantial increase in,
capacity oftheexporter indicating thelikelihood ofsubstantially increased dumped exports tothe
importingmember’smarket,takingintoaccounttheavailabilityofotherexportmarkets;whetherimports
areentering atprices thatwillhaveasignificant depressing orsuppressing effect ondomestic prices,
andwould likely increase demand forfurther imports, andinventories oftheproduct being investigated.
Where inSlovak Republic lawarethese factors addressed?
3. Article13oftheA-DAgreementrequiresmemberstomaintainjudicial,arbitraloradministrative
tribunals orprocedures topromptly review administrative actions relating tofinaldeterminations and
review ofsuchdeterminations. Please explain howtheSlovak Republic intends toimplement this
requirement.
4. Article 6.11oftheA-DAgreement provides that“interested parties ”toananti-dumping
proceeding “shall”include (i)anexporter orforeign producer ortheimporter ofaproduct subject
toinvestigation oratrade orbusiness association amajority ofthemembers ofwhich areproducers,
exporters orimporters ofsuchproduct; and(ii)thegovernment oftheexporting Member; and(iii)a
producer ofthelikeproduct intheimporting Member oratrade andbusiness association amajority
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ofthemembers ofwhich produce thelikeproduct intheterritory oftheimporting Member. Isthe
Slovak Republic ’slawconsistent withthisprovision?
5. Isadecision toterminate ananti-dumping investigation a“finaldetermination ”under Slovak
Republic law? Ifso,howistheinability toappeal adecision ontermination setforthinArticle 17(4)
ofSlovak Republic lawconsistent withtheArticle 13oftheA-DAgreement which provides forthe
appeal offinaldeterminations?
6. TheSlovak Republic ’slawdoesnotcontain aprovision fordivision ofanational market into
twoormore markets aspermitted under certain conditions inArticle 4.1(ii) oftheA-DAgreement.
DoestheSlovak Republic lawcontemplate using thistypeofanalysis? Ifso,under whatcircumstances?
7. What consideration isintended tobegiven totheopinions oftheMinistry ofEconomy, the
Ministry ofForeign Affairs, andtheAnti-Monopoly Office oftheSlovak Republic ontheproposed
decision oftheimposition ofduties provided forinArticle 24ofthelawoftheSlovak Republic? Can
theopinions ofthese ministries change thefinaloutcome oftheinvestigation?
8. HowdoestheSlovak Republic intend toassess the“likely ”decrease inproduction, capacity
utilization andprofits onthedomestic industry asprovided forinArticle 6ofthelawoftheSlovak
Republic?
9. TheActdoesnotinclude judicial review provisions, although itstates inArticle 27thatthe
“decisions under thisActmaybereviewed onlybyanappellate procedure ”.Article 13ofthe
Anti-Dumping Agreement requires thateachMember whose national legislation contains provisions
onanti-dumping measures shallmaintain judicial, arbitral oradministrative tribunals orprocedures
forthepurpose oftheprompt review ofadministrative actions pertaining tofinaldeterminations and
results ofreview. Please explain therelevant provisions oftheappellate procedure. Willthese be
notified totheWTO Anti-Dumping Committee?
10. InArticle 2(d)oftheAct,thedefinition ofordinary course oftrade refers totheprinciples
of“faircompetition ”,tothe“proper comparison oftraded products ”,andto“reasonable economic
costs andadequate profits ”.Foreachofthese criteria, could theSlovak Republic please supply
explanatory information?
11. InArticle 2(e)oftheAct,thedefinition oflikeproduct includes arequirement thattheproduct
can“beexchanged fortheexported product ”.Article 2.6oftheA-DAgreement doesnotappear to
include sucharequirement. Could theSlovak Republic please explain howitviews therelationship
between Article 2(e)oftheActandArticle 2.6oftheA-DAgreement?
12. InArticle 2(f)(2) oftheAct,thedefinition ofdomestic industry maybelimited toaportion
oftheproduction ofthelikeproduct intheSlovak Republic. Thisportion must exceed 25percent
ofthevolume ofproduction ofthelikeproduct. Please explain thecircumstances inwhich thedomestic
industry willbesolimited withreference toArticle 4.1oftheA-DAgreement.
13. InArticle 3(2)(b) oftheAct,there areprovisions forthecalculation ofexport price where
theimported products arenotsoldtoanindependent buyer orwhere theyarenotsoldinthecondition
inwhich theyareimported. Please explain whatprice theSlovak Republic intends touseasthebasis
oftheexport price calculation (i.e., theprice before adjustments) insuchcircumstances?G/ADP/Q1/SVK/2
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14. InArticle 4oftheAct,thedefinition ofnormal value makes reference to“allprice-fixing
factors ”.Please explain whatthismeans. Inaddition, could theSlovak Republic explain howitintends
toimplement therequirement ofArticle 2.4oftheA-DAgreement thatthenormal value transaction
should beatthesame leveloftrade astheexport price transaction?
15. Article 5(9)(b) oftheActappears tostatethatifthevolume ofsalesinthenormal market sold
atlessthanthecostofproduction (plusadequate profit) represents lessthan20percentofthevolume
inthenormal value market, nosalesinthatmarket willbeusedforcomparison purposes. Could the
Slovak Republic statewhether thisisthecorrect interpretation ofthisprovision (withparticular reference
toArticle 2.2oftheA-DAgreement)? Article 2.2oftheADAgreement appears torequire that,in
cases where below costsalesinthehome market aredeemed nottobe“intheordinary course oftrade”,
there be“nosales ofthelikeproduct intheordinary course oftrade inthedomestic market ofthe
exporting country ”before resort toanother market isjustified.
16. Article 5(9)(c) oftheActrefers tothe“volume ofsalesofthelikeproducts intheexporting
country hasbeencarried onwithin aperiod oflessthansixmonths before thecommencement ofthe
anti-dumping proceedings ”.Please explain themeaning oftheprovision. Inaddition, doestheSlovak
Republic intend toresort tothirdcountry orcostofproduction insuchcircumstances (asopposed to
prices intheexporting country)?
17. Article 6(3)oftheActcontains provisions related tothedetermination oftheextent ofinjury
tothedomestic industry. Article 3.5oftheA-DAgreement provides anon-exclusive listoffactors
thatmayberelevant tothedetermination ofwhether dumping iscausing injury. Oneofthefactors
onthatlistis“export performance andproductivity ofthedomestic industry ”.Could theSlovak
Republic explain whether these factors willbetaken intoaccount under Article 6(3)?
18. Article 9(b)oftheActprovides forthesuspension ofthecomplaint intheevent thatthevolume
ofproduction ofthelikeproducts ofproducers supporting thecomplaint islessthan50percentof
thetotaloutput ofthelikeproducts manufactured bytheproducers whosupplied theirobservations
concerning thecomplaint. However, suppose thatthedomestic producers expressly supporting the
complaint account forlessthan25percentoftotalproduction ofthelikeproduct produced bythe
domesticindustry.Inthatevent,couldtheSlovakRepublicexplainwhetherthecomplaintbesuspended?
19. Article 11(3) oftheActstates thatanotice ofinitiation shallbesimultaneously mailed tothe
parties totheproceeding andtotheappropriate authorities intheexporting country. However,
Article 5.5oftheA-DAgreement provides thatbefore proceeding toinitiate theauthorities shallnotify
thegovernment oftheexporting country concerned. Could theSlovak Republic clarify when itintends
tonotify thegovernment oftheexporting country?
20. Article 17(4) oftheActstates thatthereshallbenoappeal against adecision onthetermination
oftheproceedings. Assuming thataresponding party believes thatarefusal toterminate iscontrary
toitsrights under Article 17oftheAct,could theSlovak Republic explain whether theresponding
party hasalegalrecourse?
21. Please explain whatprovisions permit apartytorequest theannulment ordecrease ofadefinitive
duty. Inaddition, could theSlovak Republic indicate whether itintends toconduct “reviews ”within
themeaning ofArticle 11.2oftheA-DAgreement? Ifso,under what circumstances willtheybe
conducted?G/ADP/Q1/SVK/2
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22. Article 12.2oftheA-DAgreement provides that,inthepublic notice ofanypreliminary or
finaldetermination, thefindings offactandconclusions oflawconsidered material bytheinvestigating
authorities shallbesetforth insufficient detail. Article 25oftheActdoesnotrequire suchfindings
andconclusions tobesetforthinthenotice ofanypreliminary orfinaldetermination. Could theSlovak
Republic explain whether itintends tosetforth suchfindings andconclusions initspreliminary and
finaldeterminations?
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