WORLD TRADE  
ORGANIZATION  G/ADP/Q1/EEC/23 
G/SCM/Q1/EEC/23 8 October 2004 
 
(04-4201) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Questions Posed by the UNITED STATES  
Regarding the Notification of the EUROPEAN COMMUNITIES1 
   The following communication, dated 7 October 2004, is being circulated at the request of the Delegation of the United States. 
 
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 1. Clarifying the procedures for instituting inv estigations and measures to correct circumvention 
of anti-dumping measures, Article 13(1) of the Regulation on protecti on against dumped import
2 (the 
"Dumping Regulation") now specifies that "Circumvention shall be defined as a change in the pattern 
of trade between third countries and the Community  or between individual companies in the country 
subject to measures and the Community ...." (Emphasis added.)   
 • Please clarify whether a change in the pattern of trade between individual companies in a 
third country and the Community could also be defined as circumvention for the purposes of 
revised Article 13(1). 
 2. The new Regulation adds a new paragraph (7) to Article 14 of the Dumping Regulation and to 
Article 24 of the Regulation on protection agai nst subsidised import
3 (the "Subsidies Regulation") 
whereby "the Commission may request Member States,  on a case by case basis, to supply information 
necessary to monitor efficiently the application of measures."  
 • Does this new paragraph apply only when price undertakings are in effect, as may be inferred 
from paragraph (27) of the preamble? 
 
• Please clarify the difference, if any, between Article 14(6) and new Article 14(7) of the 
Dumping Regulation and between Article 24(6)  and new Article 24(7) of the Subsidies 
Regulation.  In particular: 
  (a)  What is the difference between a "r eport", per Article 14(6)/Article 24(6), and 
"information necessary to monitor" in Article 14(7)/Article 24(7)? 
 
                                                     
 
1 G/ADP/N/1/EEC/2/Suppl.5-G/SCM/N/1/EEC/2/Suppl.5 (28 April 2004), attaching Council 
Regulation (EC) No. 461/2004 (the "new Regulation"). 
2 Council Regulation (EC) 384/96. 
3 Council Regulation (EC) 2026/97. G/ADP/Q1/EEC/23 
G/SCM/Q1/EEC/23 Page 2 
 
 
  (b)  Would a Member State be required only to supply the information, which the 
Commission would then use for monitoring purposes?  
  (c)  If not, would a Member State actually engage in monitoring the application of 
measures and then supply information to the Commission in order to explain its 
conclusions? 
  (d) In connection with the monitoring activ ities described in the referenced paragraphs, 
does the Commission have the right to direct a request for information only to 
Member State customs authorities or does th e Commission also have the authority to 
request information from other Member State administrative authorities (e.g., tax, corporate, etc.)? 
 3. Regulation 461/2004 adds an a dditional sentence to Article 19(6) of the Dumping Regulation 
and Article 29(6) of the Subsidies Regulation regarding use of information received by the 
Commission:  "This provision shall not preclude the use of information received in the context of one investigation for the purpose of initiating other inves tigations within the same proceeding in relation 
to the product concerned."  • Please explain how "other investigations" can  be initiated "within the same proceeding". 
 
 (a) Are these "other investigations" lim ited only to anti-circumvention and duty 
absorption investigations?  
  (b)  If not, would the Commission also have discretion to use the information in a 
different type of investigation of the same product; e.g.
 if the Commission obtained 
information in an anti-dumping investigation indicating that the foreign producers had received actionable government subsidies, would the Commission be authorized to use such information to self-initiate a countervailing duty investigation of that 
same product/country? 
 
 (c)  Can the information be used only by the Directorate-General for Trade, or could it be 
shared with tax, competition, or other Commission or Member State authorities? 
  (d)  Please confirm that the provisions of Article 19(5) of the Dumping Regulation and 
Article 29(5) of the Subsidies Regulation will remain in full force and effect, so that 
any confidential information used pursuant to Articles 1(15) and 2(11) of the new 
Regulation will not be disclosed by officials of the Community or any Member State without the specific permission of the supplier of such information. 
 4.   The new regulations amend Article 11(5) with respect to deadlines for conducting various 
types of reviews, and also specify the result if the review ("investigation") is not completed within the 
new deadlines.  This provision provides in part that: "[i]f the investigation is not completed within the 
above deadlines, the measures shall [. . .] remain unc hanged in investigations pu rsuant to paragraphs 3 
and 4 of this Article".  Please clarify how the inter ests of exporters and importers will be protected in 
situations where the Commission is unable to complete  reviews they have requested within the stated 
deadlines.  In particular: 
 
• Does the phrase "the measures shall [. . .] rema in unchanged" indicate that the review under 
Article 11(3) or 11(4) will be terminated as of  the deadline date?  Alternatively, does the 
phrase simply mean that the measure in ques tion will remain unchange d pending completion  G/ADP/Q1/EEC/23 
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 of the review, at which time it may be changed,  as appropriate, in accordance with the results 
of the review? 
 • If Article 11(5) requires termination of a re view which cannot be completed within the 
deadlines, will exporters and importers be pe rmitted to re-file their requests for review? 
 • In the case of a review under Article 11(3) or 11(4) requested by an exporter or importer, does 
the result specified in Article 11(5) for failure to complete the review  within the deadlines 
only apply if the delay is caused by the actions of the exporter or importer? 
 
• In the case of a "newcomer" (a.k.a. "new shipper" or "new  exporter") review under Article 
11(4), if the review cannot be completed within the deadlines and thus the measure "remain[s] 
unchanged" under the rule of revised Article 11(5), will antidumping duties be levied against 
subsequent imports from the new exporter?  If so, how will the rate of duty be determined? 
 
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