RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/AHG/W/92
1 May 2000
(00-1725)
Committee on Anti-Dumping Practices
Ad Hoc Group on ImplementationOriginal:  English
PRACTICAL ISSUES AND EXPERIENCE IN
APPLYING ARTICLE 2.4.2
PRACTICAL ISSUES AND EXPERIENCE WITH RESPECT
TO QUESTIONNAIRES AND REQUESTS FOR INFORMATION
UNDER ARTICLES 6.1 AND 6.1.1
PRACTICAL ISSUES AND EXPERIENCE IN PROVIDING
OPPORTUNITIES FOR INDUSTRIAL USERS AND
CONSUMER ORGANIZATIONS TO PROVIDE INFORMATION
UNDER ARTICLE 6.12
PRACTICAL ISSUES AND EXPERIENCE IN CONDUCTING
"NEW SHIPPER" REVIEWS UNDER ARTICLE 9.5
Paper by India
The following communication, dated 27 April 2000, has been received from the Permanent
Mission of India.
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1. Practical Issues and Experience in Applying Article 2.4.2
Article 2.4.2 of the Anti-dumping Agreement states that subject to the provisions governing
fair comparison in paragraph 4 of this Article, the existence of margins of dumping during theinvestigation phase shall normally be established on the basis of a comparison of a weighted average
normal value with a weighted average of prices of all comparable export transactions or by a
comparison of normal value and export prices on a transaction to transaction basis.  A normal value
established on a weighted average basis may be compared to prices of individual export transactions if
the authorities find a pattern of export prices which differ significantly among different purchasers,regions or time periods and if an explanation is provided why such differences cannot be taken into
account appropriately by the use of a weighted average-to-weighted average or transaction-to-
transaction comparison.
The methodology to be adopted for the purpose of calculating the dumping margins may
significantly affect the level of dumping margin itself.  The experience gained so far suggests that
alternative methods give different levels of dumping margins for the same set of information of
normal values and export prices.  The specific methodology can sometimes be advantageous to
domestic industry and sometimes to the exporters.  In ideal situation, where full information is
available and the number of transactions is sufficiently large, the comparison  of normal value and
export price on a transaction to transaction basis will give more appropriate results as compared withG/ADP/AHG/W/92
Page 2
the comparison carried out at weighted average to weighted average basis.  However, in the absence
of complete and detailed information, application of transaction by transaction would be extremely
difficult.
One of the major shortcomings of  the transaction by transaction method is the fact that it
tends to overestimate the dumping margins as compared to the weighted average method.  Transaction
by transaction method will take into account the individual dumping margins for a large number of
transactions to give a better picture of the market conditions which are expected to reflect the
seasonal, cyclical as well as volatile aspects of any market.  However, no credit is given to exporters
for sales made at prices above the normal value as these transactions are ignored under the transaction
by transaction method.  Hence the dumping margins get inflated.  On the contrary, the weighted
average method will under no circumstances lead to a higher dumping margin than the transaction by
transaction method.  Comparison of normal value and export price on a weighted average to weighted
average basis in most circumstances will lead to averaging of extreme values.  The weighted average
method therefore, would generally be more advantageous to the exporter as the positive & negative
differences of export sales prices & domestic sale prices are adequately reflected in the dumping
margins. The nature of the market, frequency of transactions, local market conditions also determinethe desirability of one method over the other.  Thus , there is a need to evolve some working rules and
guidelines for the investigating authorities for the choice of a particular method.
2. Practical Issues and Experience with resp ect to Questionnaires and Requests for
Information under Article 6.1 and 6.1.1
These Articles require that all interested parties in an anti-dumping investigation shall be
given notice  of the information which the authorities require and ample opportunity to present in
writing all evidence which they consider relevant in respect of the investigation in question.  Also,
exporters or foreign producers receiving questionnaires used in an anti-dumping investigation shall be
given at least 30 days for reply.  Due consideration should be given to any request for an extension ofthe 30-day period and, upon cause shown, such an extension should be granted whenever practicable.
These provisions are reproduced in Articl e 6(4) of Anti-dumping Rules in India.
Standardized questionnaires exist for eliciting information from exporters, importers and
domestic producers.  The information is required to be furnished within 40 days (including the transit
time) from date of issue of notice as against the time of 37 days prescribed under the Agreement.  In
certain cases, additional questionnaires are issued at the time of initiation itself keeping in mind thespecific requirements of a particular product.  The investigating authorities are generally liberal in
allowing extension to any interested party provided sufficient cause is shown and there is an intent to
participate in the investigations.  The approach of the Indian authorities has been to encourage
maximum participation by all the interested parties to arrive at the most reasonable and fair findings.
Exporters’ questionnaire can be demarcated into 8 sections seeking information on generalorganization structure, sales, price structure, cost of production, profit determination, financial
information, customer information and third country information.  Questionnaires and application
proforma are available on the website also, and can be downloaded from www.commin.nic.in/doc
3. Practical  Issues and Experience in Providing Opportunities for Industrial Users and
Consumer Organizations to provide Information under Article 6.12
Article 6.12 provides that the authorities shall provide opportunities for industrial users of the
product under investigation, and for representative consumer organizations in cases where the product
is commonly sold at the retail level, to provide information which is relevant to the investigation
regarding dumping, injury and causality.G/ADP/AHG/W/92
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The Indian laws incorporates the above provision under Rule 6 of the Anti-dumping Rules.
In practice, however, the occasion to providing opportunity to representative consumers organizations
has not arisen due to the fact that no article commonl y sold at the retail level has been investigated so
far.  As regards industrial users of the article under investigation, the authority has provided
opportunity to all industrial users who have  showed interest in the investigations.
It may also be mentioned that in the Indian laws the term ‘interested party’ has been defined
to include any party which can establish a locus of interest in the investigations.  In practice, the
initiation of an investigation is notified in the Official Gazette of the Government of India and all
interested parties including the industrial users and consumer organizations can participate in the
investigations.  It may be pertinent to mention that the industrial users and consumer organizations
while providing the information asked for by the authorities, also have a right to advance theirarguments on all aspects of an anti-dumping investigation including the procedure, dumping margins,
injury and causal link.
4. Practical Issues and Experience in Conducting ‘New Shipper’ Reviews under Article 9.5
Article 9.5 requires that if a product is subject to anti-dumping duties in an importing
Member, the authorities shall promptly carry out a review for the purpose of determining individual
margins of dumping for any exporters or producers in the exporting country in question who have not
exported the product to the importing Member during the period of investigation, provided that these
exporters or producers can show that they are not related to any of the exporters or producers in the
exporting country who are subject to the anti-dumpi ng duties on the product.  Such a review shall be
initiated and carried out on an accelerated basis, compared to normal duty assessment and review
proceedings in the importing Member.   No anti-dumping duties shall be levied on imports from such
exporters or producers while the review is being car ried out.  The authorities may, however, withhold
appraisement and/or request guarantees to ensure that, should such a review result in a determination
of dumping in respect of such producers or exporters, anti-dumping duties can be levied retroactivelyto the date of the initiation of the review.
One of the problems faced in the course of new shipper review is the level of export and
number of export transactions should be considered as appropriate for accepting exporter’s request for
initiation of new shipper review.  It is observed that once anti-dumping duty comes into force and the
residual duties are made applicable to all the exports from subject countries, the export volumes are
generally low.  The review is meaningful only in case there are exports by the applicant exporterduring the period subsequent to the period of investigation and before imposition of anti-dumping
duty.  Even if such exports are there, it is difficult to make sure as to whether or not exporter has made
carefully planned shipments to take advantage of the provision.
In practice, in the absence of any exports by the new shipper before the imposition of anti-
dumping duty, the provision of new shipper review is practically of little use.  Due to the existence of
residual anti-dumping duties the exporter is generally not able to export at the usual price in
reasonable volumes.  The request of exporter for exemption of duty is not acceded to as this can be
done only when the review is initiated.  On the other hand, review can be initiated only if there are
sufficient volumes of exports and number of export transactions is reasonable.  Under thesecircumstances new shipper review provision poses considerable practical difficulties in
implementation.
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