WORLD TRADE  
ORGANIZATION  G/ADP/Q1/JPN/12 
G/SCM/Q1/JPN/12 11 October 2004 
 
(04-4233) 
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 JAPAN1 
  
 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. Article 4.1 of the Agreement on the Implemen tation of Article VI of the General Agreement 
on Tariffs and Trade 1994 (the "AD Agreement") a nd Article 16.1 of the Agreement on Subsidies and 
Countervailing Measures (the "SCM Agreement") defi ne the term "domestic industry," subject to 
certain exceptions,  as "referring to the domestic producers as a whole of the like products or to those 
of them  whose collective output of the products cons titute a major proportion of the total domestic 
production of those products."  The new Article 4.1 , of the Cabinet Order Relating to Anti-Dumping
 
Duty  and the new Article 2.1  of the Cabinet Order Re lating to Countervailing Duty  do not contain the 
language from Article 4.1 of the AD Agreement a nd Article 16.1 of the SCM Agreement italicized 
above.  What is the reason for this omission?  2. What is the meaning of the phrase "excep t in the case where the import was in a small 
amount" used in the final clause of the first sentence of the new Article 2.2 of the Cabinet Order 
Relating to Countervailing Duty  and the new Article 4.2 of the Cabinet Order Relating to Anti-
Dumping Duty ?  How "small" must imports be to qualify under this exception?   
 3. Article 2.2 of the Cabinet Order Relating to Countervailing Duty
 and the new Article 4.2 of 
the Cabinet Order Relating to Anti-Dumping Duty  also provide for a "relationship" exception.  They 
state that, "this paragraph is not applied if the pr oducers have ... submitted the evidence to show that 
their major business concerning those products and th e like products is the domestic production of the 
like products, or the producers who have one or more  of the relationships referred to in the following 
subparagraphs and submitted the evid ence to show that  the effect of  such relationship does not cause 
the producer to behave differently from other pr oducers who have no relations referred to in the 
following subparagraphs, and if such evidence in each cases is recognized as appropriate."  Is this 
exception distinct from the "small amount" exception above? 
 4. Article 2.2 of the Cabinet Order Relating to Countervailing Duty
, states that, "... this 
paragraph is not applied if the producers have imported those products or the like products and 
submitted...."  Why is the term "or [t he] like products" not contained in Article 4.2  of the Cabinet 
Order Relating to Anti-Dumping Duty ?  What difference does the omission make? 
                                                      
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5. Paragraph 5 ,  part (3)(ii)A of the Guidelines for Procedures Relating to Countervailing and 
Anti-Dumping Duties  (the "Guidelines for Procedures") refers to "voting rights held by those who are 
expected to exercise the voting rights in the same way as the co mpany...".  Please explain which 
entities would be expected to vote in this manne r and the circumstances under which they might do 
so.  6. With regard to New Paragraph 10  of the Guidelines for Procedures, what steps will the 
administering authority take to protect confidential data reviewed and retained as exhibits during the 
course of an on-the-spot investigation? 
 7. New Paragraph 10, part (1)(ii)C of the Guidelines for Procedures indicates that reports of 
the results of on-the-spot verifications will be provi ded to interested parties upon request prior to the 
disclosure of essential facts.  How soon after the completion of an on-the-spot investigation will such 
a report be made available by the administering authority? 
 8. With respect to New Paragraph 11, part (1)(iii)  of the Guidelines for Procedures, please 
explain what is meant by the term "clarified" with respect to the "accuracy" of submitted information.   
 9. With respect to New Paragraph 11, part (1)(iv)  of the Guidelines for Procedures, please 
define how much time would be considered a "significant delay" and a "reasonable period". 
 10. Under New Paragraph 11, part (2)(iii) of the Guidelines for Procedures, where the 
administering authority requests further information, how much time will be provided for the responding party(ies) to provide the requested information?   
 
11. Under New Paragraph 11, part (2)(vi) through (viii)  of the Guidelines for Procedures, 
where a preliminary or final determination is based on facts available, what steps does the 
administering authority take to corroborate such information?  12. New Paragraph 11, part (2)(viii)   of the Guidelines for Procedures indicates that 
amendments made after a preliminary determination will be notified to the interested parties.  How 
soon after the preliminary determin ation will such amendments be notified?  What provisions are 
available for interested parties to comment on such  amendments prior to the administering authority 
making its final determination?   
13. With respect to New Paragraph 12 of the Guidelines for Procedur es, what consideration, if 
any, will be given to responding parties not selected as part of a sample who desire to be investigated?  
Please explain how the margin of dumping, if any, is  determined for responding parties that are not 
selected as part of a sample.  14. The guidelines described in New Paragraph 13, part (1)(i)(A)  of Guidelines for Procedures 
state that grants include those provided by the government and
 by private bodies, including those 
entrusted or directed by the government.  Please e xplain whether the concept of indirect subsidies 
provided by private bodies also applies to other su bsidies described in your guidelines, such as debt 
forgiveness, equity and loans.  
15. Please explain how, under New Paragraph 13, part (1)(iii)(A)(a) & (b) of the Guidelines for 
Procedures, the administering authority would determ ine that an investment decision is inconsistent 
with the usual investment practice of private inv estors.  On what basis would the administering 
authority conclude that "private investors woul d not be able to invest under such investment 
conditions"?  If it is determined that private investor s would not be able to make such an investment,  G/ADP/Q1/JPN/12 
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 would the entire amount of the equity infusion be treated as the subsidy?  Are there instances where 
the existence of private investors would not be di spositive evidence that the investment decisions is 
inconsistent with the usual investment practice of private investors?  
16. Under New Paragraph 13), part (1)(iii)(A)(b)  of the Guidelines for Procedures, please 
clarify what is meant by "comparable to government inv estment"?  Is this with reference to the size of 
the investment?  Please also specify how the admini stering authority will determine what constitutes 
"an adequate amount of subsidy".  Are there instance s where, in the absence of  private investors, the 
entire amount of the equity infusion would be treated as the subsidy?  
 
17. Under New Paragraph 13, part (1)(iv)  of the Guidelines for Procedures, please explain how 
the administering authority would treat an uncredi tworthy company, i.e., a company that could not 
have obtained loans from conventional commercial sources.   Please also explain how loans received 
by the company from commercial sources that were found  to have been entrusted or directed by the 
government would be treated.   
 18. Please explain what is considered "an appropria te period of time" to allocate a subsidy under 
New Paragraph 13, part (2)(ii) of the Guidelines for Procedures.  How is this time period 
determined?  What factors are considered in de termining that "a company continuously receives 
benefit over a number of years" from the subsidy? 
 
19. With respect to New Paragraph 14 of the Guidelines for Procedures, please explain how it 
can be "presumed" that importation of the subsidi zed or dumped products has occurred.  Please also 
explain how the continuation of an investigation can be considered where it cannot be "presumed" 
that imports are subsidized or dumped but where mate rial injury has been "presumed" to have been 
caused by such imports nonetheless. 
  
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