./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/CAN/8
G/SCM/Q1/CAN/8
30 June 1998
(98-2583)
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 of CANADA1
to Questions from VENEZUELA2
The following communication, dated 17 June 1998, has been received from the Permanent
Mission of Canada.
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Q.1. Initiation of ex officio investigations
Could Canada indicate in what circumstances an ex officio investigation could be
initiated in accordance with the provisions of its legislation?
A.1. An anti-dumping investigation may be self-initiated by the Deputy Minister of National
Revenue under section 31 of the Special Import Measures Act .  The Deputy Minister may only self-
initiate a dumping investigation where there is a reasonable indication that goods are being dumped
and that the dumping has caused injury or retardation to a Canadian domestic industry or is
threatening to cause injury to such an industry.
The few instances where Canada has determined that the special circumstances exist to
warrant the self-initiation of a dumping investigation include:
- where, after an injury finding comes into effect, importers begin sourcing like goods
from a country not included in the original investigation, and the Deputy Minister is
satisfied that there is evidence showing a reasonable indication that these goods are
being dumped and are causing injury to Canadian production;
- where, during the course of an investigation it is determined that importers are
sourcing like goods from a country that is not included in the investigation, and the
Deputy Minister is satisfied that there is evidence showing a reasonable indication
that the goods are being dumped and are causing injury to Canadian production;  and
- where, subsequent to the initiation of an investigation, it is discovered that
importations of similar goods are being made and the Deputy Minister is satisfied that
there is evidence showing a reasonable indication that these similar goods are being
dumped and are causing injury to Canadian production.
                                                     
1 G/ADP/N/1/CAN/3-G/SCM/N/1/CAN/3.
2 G/ADP/Q1/CAN/7-G/SCM/Q1/CAN/7.G/ADP/Q1/CAN/8
G/SCM/Q1/CAN/8
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Q.2. Degree of support for or opposition to the complaint
Could Canada explain at what moment and in what way the competent authority
verifies the degree of support for or opposition to the complaint made by the domestic industry?
A.2. The Special  Import Measures Act requires the Deputy Minister of National Revenue
(Revenue Canada), prior to initiating a dumping investigation based on a complaint by the domestic
industry, to determine that the complaint has the support of the domestic industry in accordance with
Article 5.4 of the Anti-Dumping Agreement.  This is done after a formal written complaint is received
by the Deputy Minister and before the initiation of the anti-dumping investigation.  This requirement
is reflected in subsection 31(2) of Special Import Measures Act , which reads as follows:
Standing(2) No investigation may be initiated under subsection (1) as a result of a complaint unless the
complaint is supported by domestic producers whose production represents more than 50 per cent ofthe total production of like goods by those domestic producers who express either support for or
opposition to the complaint and the production of the domestic producers who support the complaint
represents 25 per cent or more of the total production of like goods by the domestic industry.
In order to ensure that a complaint is supported by a sufficient percentage of domestic
production, Revenue Canada will first determine the total production in Canada.  This is normally
done using data from Statistics Canada and Industry Canada as well as data produced by industries
themselves.  In addition, Revenue Canada depends on its own data and experience in determining the
total domestic production of a Canadian industry.
In those cases where one or more producers who represent a sufficient percentage of domestic
production make the complaint, the conditions required to determine support are considered to be
satisfied.  If the complaint is not made by producers whose combined production represents a
sufficient percentage of domestic production, the complainant may choose to contact other Canadian
producers to solicit their support.  Alternatively, Revenue Canada may request directly that all other
domestic producers provide an indication of their support for or opposition to the complaint.  In such
cases, producers are asked to indicate their production figures in order to determine whether thecomplaint has the necessary level of support as required by subsection 31(2) of the Special Import
Measures Act .
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