WORLD TRADE  
ORGANIZATION  G/ADP/IG/W/51 
21 October 2004 
 (04-4482) 
Committee on Anti-Dumping Practices 
Informal Group on Anti-Circumvention Original:   English 
 
 
 
IMPORTS OF UNASSEMBLED GOODS AND PARTS 
AND COMPONENTS OF A LIKE PRODUCT 
 
Paper by New Zealand  
 
  The following communication, dated 21 October 2004, is being circulated at the request of the Delegation of New Zealand.  
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Introduction 
 
 At the spring meeting of the Informal Group on Anti-Circumvention in September 2002, New Zealand presented a case in G/ADP/IG/W/47 (disasse mbled paintbrushes) where it considered that 
circumvention of an anti-dumping duty was taking place.  The paper asked other Members what they would do in similar circumstances to remedy th e situation as this was a clear example where New 
Zealand law and the Anti-Dumping Agreement do not address the situation and, therefore, uniform 
circumvention rules may be appropriate. 
 
Current Situation  
 
 The example that New Zealand used to illustrate  the absence of provisions to adequately cope 
with situations where unassembled or disassembled  goods and like products are imported in a CKD 
form has not led to any Member of the Group comi ng forward with an adequa te answer as to what 
administering authorities can do within existing rules to  deal with such situations.  This suggests that 
the Anti-Dumping Agreement as it currently stands is  inadequate to deal with such cases and this 
Group should be taking heed of the Minist erial decision on circumvention to be: 
 
“Mindful  of the desirability of the applicability of uniform rules in this area as 
soon as possible”. 
 
 Of the countries who have notified their legislation in the Committee on Anti-Dumping 
Practices, several countries have included circumven tion provisions in that legislation.  Given that 
there are no standard rules in existence at this poi nt in time each administration has devised its own 
rules to suit its own purposes.  Th is will inevitably lead to differe nt practices and definitions being 
used and a lack of predictability of practice a nd consistency will result.  New Zealand therefore 
believes that it is in the interests of all Members that  this type of import is de alt with consistently, so 
that predictability and transparency become part of any process.  G/ADP/IG/W/51 
Page 2  
 
 Possible Approach to Deal with Such Situations 
 
 New Zealand believes that it is sensible to iden tify clear examples of circumvention that the 
existing rules do not cover and promulgate rules th at will cover that situation.  To this end, 
New Zealand sets out below one possible approach fo r discussion that deals solely with the situation 
of unassembled and disassembled goods and like produc ts imported in a CKD form in order to 
circumvent a published anti-dumping duty.  This is not intended in any way to be definitive legal 
drafting – it is merely an attempt to stimulate a more focused debate of this particular issue. 
 
Measures to Prevent the Circumvention of Definitive Anti-dumping Duties 
 Imports of Unassembled or Disassembled Goods, or Parts and Components of a Like Product in CKD 
Form  
  Where a definitive anti-dumping duty on a pro duct has been notified and the administering 
authority determines that imports of: 
 
(i) unassembled or disassembled goods; or 
(ii) parts and components of the product in CKD form;  
 
are seriously undermining the remedial effect of th e definitive anti-dumping duty, duties shall apply to 
those goods, parts or components destined for assembly or completion in the importing country as if 
they were the product provided that:  
(i) they originate in the country of the product; and 
(ii) the unassembled or disassembled product or th e parts and components have the essential 
characteristics of the product when assembled. 
 
Process Issues  
 The use of the words “determines that impor ts…are seriously undermining” indicates that 
there should be no legal basis for an extensi on of an anti-dumping duty without a meaningful 
investigation by the administering authority of  the circumstances surrounding the importations of 
unassembled or disassembled goods or parts and components in CKD form and not be simply an administrative decision.   This would allow the administering authority to  consider such issues as patterns of imports by 
interested parties, change of business practices since the imposition of the original anti-dumping 
duties and the like.  Most importantly it would also require administering authorities to report on the findings that led to the decision to impose the an ti-dumping duty on the parts and components and not 
make arbitrary decisions to extend descriptions  of like product to cover such imports.  
 
 Such investigating and reporting procedures might well be included in an overarching 
chapeau introducing the concept of circumvention.   Actual examples of circumvention, such as that 
listed above and how to deal with them w ould be listed in the tirets to the chapeau. 
  G/ADP/IG/W/51 
 Page 3 
 
 
 Summary 
 
 This paper is an attempt to progress the issue of  a clear example of circumvention that, in the 
absence of solutions offered by other Members, seemi ngly cannot be dealt with using existing rules.  
It will allow Members to debate one specific circum stance and in time, perhaps add other solutions to 
agreed situations, like minor alterations to goods, where existing rules are inadequate and importers 
and exporters are engaging in practi ces to circumvent anti-dumping notices.  
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