WORLD TRADE
ORGANIZATIONG/ADP/Q1/CHN/28
G/SCM/Q1/CHN/28
8 October 2003
(03-5309)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Questions Posed by MEXICO Regarding the Notification
of the PEOPLE'S REPUBLIC OF CHINA1
The following communication, dated 7 October 2003, has been received from the Permanent
Mission of Mexico.
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Mexico wishes to put the following questions to the Government of the People's Republic of
China in connection with the notification of the documents referred to hereunder:
I. PROVISIONAL ANTI-DUMPING RULES, CIRCULATED IN DOCUMENT
G/ADP/N/1/CHN/2/SUPPL.1 ON 18 FEBRUARY 2003.
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on initiation of
anti-dumping investigations
Article 3
Please explain under what circumstances the Ministry may initiate an investigation on its own
initiative?
Article 7
Please indicate the applicable criteria for considering that a domestic industry is fragmented
for the purpose of using sampling methods.  Is this provision compatible with Article 5.4 of the
Anti-Dumping Agreement?
Article 16
When there is no comparable price in the ordinary course of trade, are the alternatives of the
price for export to a third country and constructed value applied successively and exclusively in orderto calculate normal value?  Is there any criterion for their application?
Please explain what is meant in the first paragraph of Article 16 by the words "… where there
is no comparable price or such price cannot be obtained, the applicant shall provide the constructed
                                                     
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value of the allegedly dumped import or the price for export to a third country".  In particular, on what
assumptions is the phrase "or … cannot be obtained" based?  State also whether the People's Republic
of China prefers constructed value information to information on the price for export to a third
country.  Finally, explain whether the choice of a third country would be applicable only if it isrepresentative.
Please clarify the meaning of the sentence in the second paragraph of Article 16, which reads:
"… When the actual constructed value cannot be obtained, the applicant may calculate it on the basis
of its own factors of production, the prevailing prices of these factors in the exporting countries
(regions) or in the international market".  In particular, what assumptions underlie the use of the
phrase "when the actual constructed value cannot be obtained".
Article 26
How does the Chinese investigating authority proceed if the applicant does not provide a
summary of information classified as confidential and does not explain the reasons for not providingsuch a summary?  Is there any classification of what is considered to be confidential information?  Is
there any mechanism for access to information classified as confidential?
Article 38
How far in advance of issuing the public notice of initiation does MOFTEC normally notify
the governments of exporting countries?
Article 40
What criterion is used for determining that the number of exporters is "large"?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on the questionnaire on
anti-dumping investigations
Article 6
Is there an obligation to notify or provide the public notice of initiation of the investigation to
foreign exporters or producers whose domicile is known to the Chinese Government?  Does the
twenty-day time-limit run from the date of such notification?
Article 23
Please explain the significance of the "letter of certificate … stating that the information
submitted … is accurate and complete".
Article 25
How is the responding company to guarantee a lack of intentional virus content in the
electronic data carrier?  On what grounds is this requirement considered to be consistent with
Annex II of the Anti-Dumping Agreement?G/ADP/Q1/CHN/28
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Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on public hearings in
anti-dumping investigations
Is a public hearing held in the context of every investigation?  Provided that an application
has been submitted by an interested party, in what cases other than force majeure  and termination of
the investigation is no public hearing held?
Are interpreters or translators allowed access to the hearings to advise participating exporters?
Article 4
What does the Chinese Government consider to constitute national secrets, commercial
secrets or personal privacy?  Does any legal instrument contain those criteria for the classification of
information?
Article 19
Please clarify or provide examples of the kind of events referred to in paragraph 3 which
would justify postponement or cancellation of the hearing.
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on sampling in
anti-dumping investigations
Article 7
Does MOFTEC have any obligation to consider the comments of interested parties on the
selection of exporters and producers included in the sample, and to respond to those comments?
Article 9
What is the "reserve list" and what purpose does it serve?  What is its significance?
Articles 21 to 24
What provision of the Anti-Dumping Agreement can be used as a basis for considering the
number of transactions as justification for sampling?  What criterion is used for determining that the
number of transactions is too large?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on disclosure of
information in anti-dumping investigations
Article 9
What interval is considered by the People's Republic of China as a "reasonable period of
time" for disclosure to the relevant exporters and producers of information on the result of the on-the-
spot verification?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on on-the-spot
verification in anti-dumping investigations
Does MOFTEC carry out on-the-spot verification in respect of domestic producers?  If not,
why not?G/ADP/Q1/CHN/28
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Article 11
How far in advance does MOFTEC notify exporters and producers of an on-the-spot
verification?
Article 12
Are there penalties for non-governmental experts who do not abide by the obligation of
confidentiality?  What are those penalties and in what set of rules are they contained?
Article 19
Are interested parties allowed to express an opinion on the classification of information
contained in the summary of the result of the verification prepared by MOFTEC?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on price undertakings
in anti-dumping investigations
Article 11
What is the reason for not accepting price undertakings offered by exporters and/or producers
who have not been fully cooperative during the investigation?  On what grounds is this consistent
with the Anti-Dumping Agreement?
Article 13
Does MOFTEC respond to the comments of pr oducers and exporters who have offered price
undertakings?
Article 23
Before cancelling the price undertaking, does MOFTEC respond to the comments of
producers and exporters?
Article 27
If the definitive anti-dumping duty is lower than the cash deposit, is the difference referred to
in the last paragraph of this article refunded with interest?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on new shipper review
in anti-dumping investigations
Article 5
Is a party which has only exported before the period of investigation entitled to request a new
shipper review even if it has not exported after the original period of investigation.  If not, explain
how that is compatible with the provisions of Article 9.5 of the Anti-Dumping Agreement.  Similarly,are "sufficient quantities" determined on a discretionary basis?  If not, how are they determined?G/ADP/Q1/CHN/28
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Articles 21 and 22
If no preliminary determination is made, at what point in time may a price undertaking be
offered?
Article 23
Explain how the fact of the investigated produc t being subject to an anti-dumping duty during
the new shipper review is consistent with Article 9.5 of the Anti-Dumping Agreement.
Article 26
When the anti-dumping duty is lower than the cash deposit, is the difference refunded with
interest?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on the refund of
anti-dumping duties
Article 18
Is the difference between the dumping margin  determined in the original anti-dumping
investigation and the dumping margin newl y determined refunded with interest?
Provisional rules of the Ministry of Foreign Trade and Economic Cooperation on interim review of
dumping and the dumping margin
On the basis of the provisional rules on interim review, can consideration be given to the
likelihood of the continuation or recurrence of injury in the event of termination or modification of the
duty?  If not, what rules govern that aspect?
Article 7
Please clarify the concept of "sufficient quantities" and "normal commercial conditions", as
referred to in the second paragraph of Article 7.
Article 16
Does MOFTEC respond to the comments of producers and exporters on whether or not an
interim review should be initiated?  If so, in what way and within what period of time?
Article 26
Explain the reasons why exporters and producers whose dumping margins were determined
as zero or de minimis  in the original anti-dumping investigation are included in the interim review?
Article 33
Under what circumstances is no preliminary determination made?G/ADP/Q1/CHN/28
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Article 35
If no preliminary determination is made, at what point in time may a price undertaking be
offered?
II. DEPARTMENTAL RULES RELATING TO THE ANTI-DUMPING AGREEMENT,
CIRCULATED IN DOCUMENT G/ADP/N/1/CHN/2/SUPPL.2 OF 14 APRIL 2003
Rules on investigations and determinations of industry injury for anti-dumping
How does the Chinese Government reconcile its provisions on the use of the best information
available with the provisions of Annex II of the Anti-Dumping Agreement?
Article 34
On the basis of what criteria may the request for a hearing be refused?
Rules on public hearings with regard to investigations of injury to industry
Article 21
Please clarify or provide examples of the type of circumstances referred to in paragraph 3
which would justify suspension of the hearing or its termination.
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