RESTRICTED
WORLD TRADE G/ADP/AHG/W/2
1April 1997
ORGANIZATION(97-1310)
Original: English Committee onAnti-Dumping Practices
AdHocGroup onImplementation
TOPICS 1,7AND 9*
Proposals bytheEuropean Communities
Thefollowing communication, dated 13March 1997, hasbeenreceived fromthePermanent
Delegation oftheEuropean Commission.
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Disclosure ofFindings
1. Introduction
Various provisions inArticle 6oftheWTO Anti-Dumping Agreement laydown theprinciples
applicable tothedisclosure offindings inanti-dumping cases. Provided thatconfidentiality ispreserved,
information hastobegiven atappropriate timeandinsufficient detail toallow interested parties to
defend theirinterests throughout theprocedure.
Asfarasthescope ofthedisclosure isconcerned, theAgreement requires thatparties are
provided withtheessential factsunder consideration which form thebasis forthefinaldecision.
However, there isaclose connection between thedisclosure under Article 6andinformation
which hastobepublished under Article 12,atopicwhich alsohasbeenselected fordiscussion atthe
"adhoc"group.
2. Towhom should disclosure bemade?
Allinterested parties should beprovided withdisclosure insofarastheyhavemade themselves
known within thetimelimits setoutinthenotice ofinitiation andhavecooperated intheinvestigation.
3. Information tobedisclosed
Asstatedabove,theprincipleaimwhendisclosingistoprovidepartieswithsufficientinformation
sothattheycanadequately defend theirinterests. Particular emphasis should beplaced onadequate
disclosure forissues which havebeencontested bytheparty.
*Seedocument G/ADP/W/401 fordescriptions oftopics.G/ADP/AHG/W/2
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Asfarasfindings areconcerned, the"essential factsunder consideration which formthebasis
forthefinaldecision" andwhich should bedisclosed insufficient detail are:
(a) Dumping
- those relating tolikeproduct, i.e.relating tothechoice oftypes/models selected forthe
establishment ofnormal value, inparticular where theinterested party hascontested such
selection;
- those relating tothesampling method, i.e.thejustification fordoing soaswellasforthechoice
offirms selected;
- those relating tothecalculation ofnormal value, including thereasons forusing ornotusing
domestic prices, e.g.theresults of"sufficient quantity" tests, theresults ofany"ordinary course
oftradetests", including methodology forcalculating theperunitcost,theprecise methodology
forcalculating constructed normal values orprices tothirdcountries;
- themethodology andinformation usedincalculating export prices, inparticular iftheyhave
beenconstructed, inwhich casedisclosure should include information onresale prices inthe
country ofimport andthedeductions made toestablish reliable export prices;
- those relating tofaircomparison, including reasons forrejecting claims foradjustments, the
reasons foranydeviation from theaverage-to-average ruleandreasons forthechoice of
exchange rates.
(b) Injury andcausality
- those relating topriceand/or quantity effects ofthedumped imports clearly indicating whether
oneorbothofthese havebeenidentified;
- thoserelating toimpact ontheindustry, indicating which economic indicators havebeenaffected
bytheprice orquantity effects onthedumped imports andhowtheycanbereasonably
established thatsuchimpact canbeattributed tothedumped imports;
- those relating tofactors other thanthedumped imports andhowanyinjury fromsuchfactors
hasnotbeenattributed tothedumped imports;
- thebasis onwhich thefigures usedintheabove assessment havebeencalculated.
4. How todisclose
Final disclosures should bemade inwriting. Thisshould bedoneindividually toallinterested
parties upon request.
Asstated intheintroduction, theAgreement requires inaddition thatinterested parties beable
todefend theirinterests throughout theprocedure. Toachieve thisrequirement, anon-confidential
fileshould bemade available andparties should begiven theopportunity toregularly consult itso
thattheyarekeptabreast ofallsignificant developments inthecase.G/ADP/AHG/W/2
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Itwillbeuptotheparties torequest access tosuchfilesandtosubmit comments onsuch
information.
5. Timing ofdisclosure
Disclosures should normally takeplace earlyenough toallow interested parties tosubmit their
comments onthedisclosure.
Treatment ofConfidential Information
1. Introduction
Article 6.5oftheWTO Anti-Dumping Code laysdown theprinciples applicable tothetreatment
ofconfidential information which issubmitted during anti-dumping procedures.
Confidential treatment isjustified ifitcanbedemonstrated thatdisclosure oftheinformation
concerned would cause commercial harm tothesupplier oftheinformation. Ifconfidential treatment
iswarranted onthatbasis, non-confidential summaries havetobeprovided insuchawaythatthey
allow areasonable understanding ofthesubstance oftheconfidential information. Confidential
information which isnotaccompanied bysuchanon-confidential summary maybedisregarded unless
theparty canjustify whythisinformation isnotsusceptible ofsummary.
Inpractice,thequestionofconfidentialityarisesatseveralstagesoftheprocedure,i.e.inrelation
oftheapplication, when keeping parties regularly informed throughout theproceedings andwhen
disclosing provisional andfinalfindings.
Thepurpose ofthepresent noteistoexamine when confidential treatment mayberequested
andwhatconstitutes asufficient non-confidential summary.
2. Type ofinformation where theconfidential treatment iswarranted
Asmentioned above, information hastobeconsidered confidential when itsdisclosure would
orcould commercially harm thesupplier ofinformation.
Nevertheless, theemphasis should beonproviding themaximum amount ofinformation to
interested parties andifinformation isconsidered confidential thenproper andcomprehensive non-
confidential summaries should beprovided.
Thequestion ofconfidentiality canariseasearlyasthelodging oftheapplication inthatsome
oftheinformation contained therein canlegitimately beconsidered confidential. Thismay,inparticular,
apply toevidence relating tonormal value andexport prices. Inthisrespect, anyinformation onprices
andcosts may, incertain circumstances, havetobeclassified asbusiness secrets which should not
bereleased tocompetitors.
Thesame mayapply totheinjury evidence setoutintheapplication particularly when there
areonlyoneortwoapplicants inwhich caseeconomic indicators suchasproduction, sales, capacities,
investments andproduction costs would clearly beofsome value tocompetitors.G/ADP/AHG/W/2
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Much oftheinformation obtained throughout proceedings onwhich provisional anddefinitive
findings arebased mayalsobeconfidential. Proper disclosure canbeaparticular problem incases
where findings forsome parties, e.g.dumping margins, arebased, notontheirowninformation, but
oninformation obtained fromotherparties, andsuchinformation cannot bereleased intheformobtained
because itisconfidential. Inthese cases, particular efforts should bemade toprovide non-confidential
summaries which willenable theparty toadequately defend itsinterests.
3. How topresent acomprehensive non-confidential summary
Itistherefore undisputed thatinthese investigations aconsiderable amount ofinformation
obtained canbeclassified asconfidential, i.e.itsdisclosure could bedetrimental tooneparty inthat
itcould benefit other parties. Therefore, thepurpose ofthisnoteisnotsomush torestrict theamount
ofinformation which canbeclassified asconfidential (though thatwould bekepttoaminimum) as
much astoensure thatwhen information issoclassified thatproper non-confidential summaries are
provided.
Forthispurpose, anoverriding principle isthatthesummary provided mustleave therecipient
withareasonable understanding oftheissue orsubject matter andwhich leaves them inaposition
inwhich theycanadequately defend theirinterests.
Itshould beabasic ruletoconsider thatthere ispractically noinformation which isnot
susceptible tobeing summarized innon-confidential form. Iftheinformation inquestion relates to
prices orcosts, forexample, itcanberelayed tointerested parties byusing indices orevenbyproviding
approximate figures, i.e.ranges offigures.
Itshould alsobeabasicrulethatparties should beinformed ofanyinstance where confidential
information, which cannot bedisclosed innon-confidential form, hasbeenusedintheinvestigation.
Moreover, theyshould begiven some indication oftheimportance oftheir(confidential) information
tofinalfindings.
4. Access tothenon-confidential file
Interested parties should begiven timely access tothenon-confidential filethroughout thewhole
procedure toallow them todefend theirinterests. (Seenoteondisclosure offindings).
Thefileshould contain allinformation presented byparties andanyreactions oftheauthorities
tosuchinformation, either intheformaswritten orintheformofaproper non-confidential summary
oftheinformation.
Provisional Measures -Content ofPreliminary Affirmative Determination
1. Introduction
Thepurpose ofthisnoteistoexplore howmuch common ground exists between members
onthequestion ofwhatconstitutes a"preliminary affirmative determination ofdumping andconsequent
injury" (Article 7.1).
Itisnottheintention ofthisnotetofixabsolute standards forprovisional determinations.
Rather, itwould beuseful toexamine whether Members 'authorities uphold consistent minimalG/ADP/AHG/W/2
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requirements -andifsohowwidely these requirements differ -withaview todeveloping some
understanding forcommon application oftheAgreement.
2. Article 7oftheWTO Agreement
Oneprincipal guide isArticle 7.1oftheAgreement, which setsoutthree conditions which
must befulfilled before provisional measures areapplied, namely:
(i) aninvestigation hasbeeninitiated inlinewithArticle 5(i.e.bypublication, allowing
interested parties adequate opportunity tocomment);
(ii) "apreliminaryaffirmativedeterminationhasbeenmadeofdumpingandconsequent
injury toadomestic industry ";and
(iii) theauthorities deem themeasures necessary toprevent injury being caused during the
investigation.
Ourfocus willbeonthesecond condition, which remains opentointerpretation.
3. Article 12.2oftheWTO Agreement
Thesecond source ofguidance isinArticle 12,which states thattheobligatory public notice
of"anyprovisional orfinaldetermination" shallsetout"insufficient detail thefindings andconclusions
reached onallissues offactandlawconsidered material bytheinvestigating authorities". Itisnot
clearwhatismeant by"sufficient detail", andinanycase,therelevant authorities aregiven discretion
todecide whatisorisnot"material".
Article 12.2.1 ,dealing specifically withtheimposition ofprovisional measures, states that
thepublic notice must setout"sufficiently detailed determinations ondumping andinjury andshall
refertothematters offactandlawwhich haveledtoarguments being accepted orrejected." Inaddition,
thissub-paragraph stipulates thatthenotice willcontain, further tothenames ofsuppliers orsupplying
countries involved, andthedescription oftheproduct:
- themargins ofdumping established andafullexplanation ofthereasons forthe
methodology usedintheestablishment andcomparison oftheexport priceandnormal
value under Article 2;
- considerations relevant totheinjury determination assetoutinArticle 3;and
- themain reasons leading tothedetermination.
Notwithstanding theflexibility ofinterpretation available totheauthorities, Article 12.2.1 helps
toclarify whatmaylegitimately beexpected ofthepreliminary affirmative determination referred to
inArticle 7.Preliminary dumping andinjury calculations must havebeencarried out,leaving for
thedefinitivestagethepossibilityofreachingfinalfindingsonmatterswhichpreviouslywereprovisional
because thedatawasunverified orinsufficiently complete.G/ADP/AHG/W/2
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4. Guidelines forpreliminary determinations
Thefollowing isalistofsuggested general guidelines forpreliminary determinations:
- Asstipulated byArticles 7and12oftheAgreement, preliminary evidence ofdumping, injury,
andacausal linkmust havebeenfound, before authorities adopt provisional measures.
- Ondumping ,the"sufficiently detailed determinations" carried outandreported inthe
provisional regulation should cover preliminary findings on:
- likeproduct ,including reasons forthechoice oftypes/models selected forthe
establishment ofnormal value;
- normal value,including thereasons forusing ornotusing domestic prices, e.g.the
results of"sufficient quantity" tests, theresults ofany"ordinary course oftradetests",
including methodology forcalculating break-even costlevels, theprecise methodology
forcalculating constructed normal values orprices tothirdcountries;
- export prices ,inparticular iftheyhavebeenconstructed, inwhich caseinformation
should beincluded onresale prices inthecountry ofimport andthedeductions made
toestablish totheexport prices;
- comparison ,including reasons forrejecting claims foradjustments, thereasons for
anydeviation fromtheaverage-to-average ruleandreasons forthechoice ofexchange
rates; and
- other keyissues ,suchaswhere sampling hasbeenapplied, when thejustification for
sodoing should begiven aswellasforthechoice offirms selected.
- The"considerations relevant totheinjury determination" should cover:
- preliminary findings onthenegative priceand/or volume effects ofthedumped imports,
clearly indicating whether oneorbothofthese havebeenidentified;
- preliminary evidence showing theconsequent adverse impact ofthese effects onthe
domestic industry, demonstrating thatitisreasonable toattribute injury tothedumped
imports, andthattheinjury would persist without theintroduction ofmeasures;
- preliminaryfindingsonnegativeeffectsrelatingtootherfactors,showingthatanyinjury
from suchfactors hasnotbeenattributed tothedumped imports; and
- thebasis onwhich thefigures usedintheabove assessment havebeenpreliminarily
calculated.
- Thepublic notice should explain thebasis onwhich thefigures used inpreliminary
determinations wereobtained, whether fromthequestionnaire responses orother information
sources, andtowhatextent theyhavebeenverified.
- Where sources other thanquestionnaire responses havebeenused, therationale behind using
suchinformation should beexplained.