WORLD TRADE
ORGANIZATIONG/SCM/N/1/PAK/2/Suppl.1
15 October 2002
(02-5568)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 32.6 OF THE AGREEMENT
PAKISTAN
Supplement
The following communication, dated 8 October 2002, has been received from the Permanent
Mission of Pakistan.
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THE GAZETTE OF PAKISTAN
EXTRAORDINARY
PUBLISHED BY AUTHORITY
ISLAMABAD, FRIDAY, 6 SEPTEMBER 2002
PART II
Statutory Notifications (S.R.O.)
GOVERNMENT OF PAKISTAN
MINISTRY OF COMMERCE
NOTIFICATION
Islamabad, 6 September 2002
S.R.O. 599 (I)/2002  – In exercise of the powers conferred by section 34 of the Countervailing
Duties Ordinance, 2001 (I of 2001), the Federal Government is pleased to make the following rules,
namely:
1. Short title and commencement  – (1)  These rules may be called the Countervailing
Duties Rules, 2002.
(2) They shall come into force at once.G/SCM/N/1/PAK/2/Suppl.1
Page 2
2. Definitions  – (1)  In these rules, unless there is anything repugnant in the subject or
context, -
(a) "application" means an application made under section 11 of the Ordinance;(b) "Ordinance" means the Countervailing Duties Ordinance, 2001 (I of 2001);  and(c) "Schedule" means the Schedule annexed to these rules.(2) All words and expressions used but not defined shall have the meaning assigned to
them in the Ordinance.
3. Disclosure in application  – An application shall contain the information specified in
section 11 of the Ordinance, as is reasonably available to an applicant on the following, namely: -
(a) name, address, telephone number, facsimile number and electronic mail address of
the applicant;
(b) the identity of domestic industry by or on behalf of which the application is being
made including the names, addresses, telephone numbers, facsimile numbers and
electronic mail addresses of all other known producers or association of producerswhich is a trade organization as defined in the Trade Organizations Ordinance, 1961
(XLV of 1961), and has been granted or deemed to have been granted a licence
thereunder in respect of the concerned domestic industry;
(c) information relating to the degree of domestic industry support for the application
including volume and value of domestic production of a like product by the applicant
and by each domestic producer identified;
(d) a complete description of an allegedly subsidized product including the technical
characteristic and uses and its current customs tariff classification number as
contained in the First Schedule to the Customs Act, 1969 (IV of 1969).
(e) the name of exporting country, identity of each known exporter or foreign producer,
and a list of known persons importing the product in question;
(f) evidence with regard to the existence,  amount, nature and countervailability of
subsidy in question;
(g) information on changes in volume of allegedly subsidized imports, the effect of those
imports on prices of a like product in dom estic market and the consequent impact of
the imports on domestic industry as demonstrated by relevant factors and indices
having a bearing on the state of domestic industry, such as those listed in theexplanation to sub-section (1) of section 9, and in sub-section (3) of section 9 of
Ordinance.
(h) the exporter(s) or producer(s) the applicant believes sells the allegedly subsidized
product and the proportion of total exports to Pakistan that exporter or produceraccounted for during the most recent twelve-month period;
4. Commission to avoid publicizing application  – The Commission shall not, unless a
decision has been made to initiate an investigation, publicize an application.G/SCM/N/1/PAK/2/Suppl.1
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5. Initiation of investigation  – The Commission shall normally decide whether or not
to initiate an investigation within a period of forty-five days of the date of receipt of an application
complaint with the requirements of section 11 of the Ordinance and rule 3:
Provided that when such application involves complex issues, or if the Commission has
sought additional information from an applicant, the time-period may, if the Commission so deems fit,
be extended to sixty days.
6. Disclosure in notice of initiation of an investigation  – The notice of initiation of an
investigation referred to in sub-section (14) of section 11 of the Ordinance shall contain adequate
information on the following, namely: -
(a) The name of the country or countries of export, and if different, the country or
countries of origin of an investigated product;
(b) a complete description of an investigated product including the technical
characteristics and uses of such product and its current tariff classification number as
contained in the First Schedule to the Customs Act, 1969 (IV of 1969);
(c) a description of the alleged subsidization to be investigated including the basis for
such allegations;
(d) a summary of the factors on which the allegations of injury are based;(e) the address where information and comments may be submitted and the time-period
allowed to interested parties for making their views known;
(f) the date of initiation of an investigation (being the date of publication of notice);  and(g) the proposed schedule for an investigation.7. Acquisition of information  – (1) Subject to sub-rule (2), the Commission shall
solicit, gather, obtain, accept or reject information for the purposes of an investigation in accordancewith the following, namely: -
(a) Upon initiation of an investigation, the Commission shall send questionnaires to any
person it believes may have information relevant to an investigation including known
domestic producers, importers, exporters and foreign producers and, suchquestionnaires may require such information, as the Commission deems necessary;
(b) the Commission may disregard any reply to a questionnaire, which is not submitted
within the time provided or in the form requested;
(c) the Commission may, during the course of an investigation, request further
information from interested parties, in the form of supplementary questionnaires, or
written requests for clarification or additional information and such requests shall
state the date by which reply is due and sufficient time shall be granted by the
Commission in order to allow meaningful replies;  and
(d) any interested party may, on its own in itiative, submit to the Commission, in writing,
any information it considers relevant to an investigation and the Commission shallG/SCM/N/1/PAK/2/Suppl.1
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consider such information unless such consideration would be unduly burdensome to
the Commission or disrupt the timely progress of an investigation.
(2) Any factual information relevant to the determination of the amount of subsidy or
injury voluntarily submitted shall be considered by the Commission only if it is received in writing nolater than two weeks prior to the date of provisional determination.
(3) An applicant shall provide all information reasonably required by the Commission
subsequent to the filing of an application to enable it to proceed with an investigation pursuant to sub-
section (3) of section 11 of the Ordinance.
8. Preliminary written arguments  – Not later than fifteen days before the scheduled
date of provisional determination, interested parties may submit written arguments to the Commission
concerning any matter relevant to an investigation.
9. Disclosure in notice of provisional measures  – The notice of provisional measures
referred to in sub-section (3) of section 25 of the Ordinance shall contain the following information inaddition to the information specified in the said sub-section, namely:
(a) The names of the known exporters and producers of an investigated product;(b) description of an investigated product which is sufficient for customs purposes
including the current customs tariff classification number as contained in the First
Schedule to the Customs Act, 1969 (IV of 1969);
(c) the amount of subsidy, if any, found to exist and the basis for such determination
including a description of the methodology used in determining the amount ofcountervailable subsidy;
(d) the factors that have led to the determination of injury including information on
factors other than subsidized imports that have been taken into account;  and
(e) the amount of any provisional measures to be applied and the reasons why such
provisional measures are necessary to prevent injury caused during an investigation.
10. Request for hearing  – Any request for a hearing by an interested party shall be made
not later than thirty days of the date of publication of notice of provisional measures.
11. Procedure for on the spot investigation  – For the purposes of a verification visit
under section 26 of the Ordinance, the Commission shall carry out on the spot investigation in
accordance with the procedure as provided in Schedule I.
12. Written arguments  – (1)  In an investigation in which no hearing is requested, any
interested party may submit written arguments to the Commission concerning any matter it considersrelevant to an investigation not later than forty-five days before the date proposed for final
determination.
(2) In an investigation in which a hearing is held, any interested party may, not later than
ten days before the specified date of a hearing, submit written arguments to the Commissionconcerning any matter it considers relevant to an investigation.  Following such a hearing, interested
parties who participated in the hearing may, within  ten days, submit further written arguments to the
Commission in response to arguments and information presented at the hearing.G/SCM/N/1/PAK/2/Suppl.1
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13. Procedure for a hearing  – (1)  The Commission shall, upon a request made under
rule 10, hold a hearing at which all interested parties may present information and arguments:
Provided that such a hearing shall be held not later than sixty days prior to the date proposed
for final determination.
(2) There shall be no obligation on any interested party to attend a hearing, and failure to
do so shall not be prejudicial to that interested party's case.
(3) A hearing shall, to the extent possible, be organized by the Commission so as to take
into account the convenience of the interested parties.
(4) At least seven days before the date of a hearing interested parties intending to appear
at the hearing shall notify the Commission of the names of representatives and witnesses who shall
appear at the hearing.
(5) A hearing shall be organized in such manner so as to ensure that all parties
participating have an adequate opportunity to present their views.
(6) The Secretary to the Commission shall maintain the record of a hearing, which
subject to the requirement to protect confidential information under section 29 of the Ordinance be
promptly placed in the public file to be maintained under section 39 of the Ordinance.
14. Disclosure before final determination  – (1)  After a hearing has been held and the
Commission has completed verification of information collected in the course of an investigation and,
in any event, at least thirty days before the proposed date for final determination, the Commission
shall inform all interested parties, in writing, subject to the requirement to protect confidential
information under section 29 of the Ordinance, of the essential facts under consideration which shall
form the basis of a decision whether to apply definitive measures under the Ordinance:
Provided that such information shall not indicate whether a final determination is affirmative
or negative.
(2) Interested parties may submit comments, if any, on the information disclosed to them
by the Commission pursuant to sub-rule (1), in writing, not later than fifteen days after such
disclosure by the Commission.
15. Disclosure in the notice of final determination  – The notice of final determination
provided for in sub-section (3) of section 25 of th e Ordinance shall, in addition to the information
required under the Ordinance, contain the following information, namely:
(a) the names of the known exporters and producers of an investigated product;(b) description of an investigated product which is sufficient for customs purposes,
including the current tariff classification number as contained in the First Schedule to
the Customs Act, 1969 (IV of 1969);
(c) the amount of subsidy, if any, found to exist and the basis for such determination
including a description of the methodology used in determining the amount ofcountervailable subsidy;G/SCM/N/1/PAK/2/Suppl.1
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(d) the factors that have led to the determin ation of injury within the meaning of the
Ordinance including information on factors other than subsidized imports that have
been taken into account;
(e) any other reasons leading to final determination;  and(f) the reasons for the acceptance or rejection of relevant arguments or claims made by
exporters and importers.
16. Disclosure after final determination  – (1)  After publication of the notice of final
determination, the Commission shall, on request made within fifteen days of the publication of the
notice of final determination, hold separate disclosure meetings with exporters or producersrequesting such meeting, to explain the subsidy calculation methodology finally applied for that
exporter or producer.
(2) The Commission shall provide an opportunity to the exporters or producers or their
legal representatives to examine and receive copies of the subsidy calculations done by theCommission for their exports to Pakistan.
17. Disclosure in application for refund of countervailing duty collected  – (1)  An
application under section 22 of the Ordinance for refund of countervailing duty collected shall contain
the following information, namely:
(a) The amount of refund of countervailing duty claimed for the period;(b) all customs documentation relating to calculation and payment of such amount;  and
(c) sufficient information to enable the Commission to calculate the amount of subsidy
for the period for which the refund is requested.
18. Disclosure in notice of acceptance of undertaking  – The notice of acceptance by
the Commission of an undertaking referred to in sub-section (3) of section 25 of the Ordinance shall
also contain the following information, namely:
(a) The names of the known exporters and producers of an investigated product;
(b) description of an investigated product which is sufficient for customs purposes
including the current customs tariff classification number as contained in the First
Schedule to the Customs Act, 1969 (IV of 1969);
(c) the amount of subsidy found to exist and the basis for such determination;  and(d) the factors that have led to the determination of injury including information on
factors other than subsidized imports that have been taken into account;
19. Fee payable under the Ordinance  – The fee payable to the Commission at the time
of submission of an application under section 11 of the Ordinance shall be in the amount as specified
in Schedule II.
20. Reviews  – The provisions of sections 11 and 12 of the Ordinance and rule 3 shall,
mutatis mutandis , apply to any review carried out under sections 19, 20 or 21 of the Ordinance.G/SCM/N/1/PAK/2/Suppl.1
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SCHEDULE I
[See rule 11]
PROCEDURE FOR ON THE SPOT INVESTIGATION
1. Upon initiation of an investigation, the government an exporting country and the
firms known to be concerned should be informed of the intention to carry out on the spot investigation
by the Commission.
2. If in exceptional circumstances it is intended to include non-governmental experts in
an investigating team, the firms and the authoritie s of an exporting country should be so informed.
Such non-governmental experts should be subject to effective sanctions for breach of confidentiality
requirements under the Ordinance.
3. The Commission shall normally obtain explicit agreement of the firms concerned in
an exporting country before a visit is finally scheduled.
4. As soon as the agreement of the firms concerned has been obtained, the Commission
shall notify the concerned authorities of an exporting country of the names and addresses of the firms
to be visited and the dates agreed.
5. Sufficient advance notice should be given by the Commission to the firms in question
before a visit is made.
6. Visits to explain the questionnaire should only be made at the request of an exporting
firm.  Such a visit may only be made if:
(a) the Commission notifies the concerned representatives of an exporting country;  and(b) the latter does not object to the visit.7. As the main purpose of an on the spot investigation is to verify information provided
or to obtain further details, it should be carried out after the response to a questionnaire has beenreceived unless the firm agrees to the contrary and the government of an exporting country is
informed by the Commission of an  anticipated visit and does not object to it.  The Commission shall
normally advise the firms concerned of the general nature of the information to be verified and of any
further information which needs to be provided, however, such requirement shall not preclude the
Commission from requesting further details on the spot  to be provided in the light of information
obtained.
8. Enquiries or questions put by the authorities or firms of an exporting country and
essential to a successful  on the spot investigati on shall, whenever possible, be answered by the
Commission before a visit is made.G/SCM/N/1/PAK/2/Suppl.1
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SCHEDULE II
[See rule 19]
FEE TO BE PAID TO THE COMMISSION
For an application under section 11 of the Ordinance Rs. 75,000
[F. No. 1 (15/97-WTO]
MUHAMMAD ARSHAD LODHI
Research Officer (WTO)
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