RESTRICTED
WORLD TRADE G/ADP/IG/W/1
3October 1997
ORGANIZATION(97-4182)
Original: English Informal Group onAnti-Circumvention
TOPIC 1-WHAT CONSTITUTES CIRCUMVENTION?
Paper bytheEuropean Community
Thefollowing communication, dated 29September 1997, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
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Circumvention ofanti-dumping measures mayoccur where, following theinitiation ofa
proceeding andtheimposition ofanti-dumping measures, imports evade thescope ofapplication of
theorder. Thiscanoccur, interalia,inthefollowing manner:
1. Minor modification ofaproduct toanextent thatanti-dumping duties arenotcollected, although
thisslightly modified product retains itsbasic essential characteristics andissoldtosimilar groups
ofcustomers orforsimilar purposes.
Such modifications could beachange intheform, thephysical shape orthecomposition of
theproduct (possibly representing adifferent stepintheproduction chain), eg:
- After theimposition ofmeasures onimports ofachemical product, thisproduct is
imported inaformnotcovered bytheanti-dumping order (aspaste instead ofpowder
eventhough thatmaybemore expensive). Thisdifference intheformdoesnotchange
thecharacteristicsortheuseoftheproduct,butleadstoanon-collectionofanti-dumping
duties.
- Subsequent totheimposition ofmeasures onamineral product, thepurity ofthegrade
ischanged (byaddition ofaneutral additive), toanextent thatadifferent customs
classification, notcovered intheanti-dumping order, applies. Asintheabove example,
theproduct isdestined forthesame end-use asprior tothemeasures.
- Without anychange intheirphysical characteristics, certain goods arepresented in
bulkrather thansmall batches which mayresult inadifferent customs classification.
Partition intosmall batches forusecaneasily bedoneaftercustoms clearance.
2. Assembly operations ofalikeproduct inathird country orinanimporting country, ifthe
setting upofthisoperation, forinstance, coincides withorfollows ananti-dumping investigation and
isofanon-substantial nature. Inthiscontext, various factors would havetobetaken intoconsideration,
suchastheproportion ofparts/inputs sourced respectively inthecountry subject tomeasures andin
thecountry ofassembly andother sources.
./.G/ADP/IG/W/1
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Examples
(a) Shipments ofthefinished goods arebeing replaced byshipments ofpartsand/or kitsthereof
which mayarrive indifferent shipments, different containers andunloading ports etc.,and
which areeasily assembled intheimporting country.
(b) Parts ofthelikeproduct and/or kitsthereof could alsobeshipped toathird country where
theyareeasily assembled andforwarded totheimporting country intheform ofafinished
product.
3. Goods maybetranshipped through athirdcountry.
Following theanti-dumping investigation andimposition ofanti-dumping measures, thelike
product isshipped totheimporting countries viaother thirdcountries (transhipment) notsubject to
measures.
4. Incorrect customs declarations concerning theorigin, tariffclassification orvalue ofthegoods
imported (likely incombination withoneoftheabove-mentioned examples).
Theabove examples arenotexhaustive andarementioned toillustrate theways inwhich anti-
dumping measures canbecircumvented.