RESTRICTED
WORLD TRADE G/ADP/Q1/IDN/3
G/SCM/Q1/IDN/3
ORGANIZATION 14April 1997
(97-1572)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from theUNITED STATES
toINDONESIA1
Thefollowingcommunication,dated9April1997,hasbeenreceivedfromthePermanentMission
oftheUnited States.
_______________
1. Isitcorrect toassume thatwherever theCustoms LawandRegulations notified inthisdocument
(G/ADP/N/1/IDN/2-G/SCM/N/1/IDN/2) aresilent onanissue covered bytheAgreements, the
Agreements willprevail?
2. How doesIndonesia ’santidumping statute orregulations provide forthetermination ofan
antidumping orcountervailing dutyinvestigation withrespect toimports from anycountry thatare
“negligible, ”asrequired byArticle 5.8oftheADAgreement andArticle 11.9oftheSubsidies
Agreement?
3. HowdoesIndonesia implement Article 3oftheADAgreement andArticle 15oftheSubsidies
Agreement,whichrequireconsiderationofspecificfactorswhenanalyzingwhetherdumpedorsubsidized
imports havecaused material injury orthreatened tocause material injury tothedomestic industry?
4. Articles 12.2.1(v) and12.2.2. oftheAntidumping Agreement, andArticles 22.4(v) and22.5
oftheSCM Agreement require disclosure of“themainreasons leading tothedetermination ”and“the
reasons fortheacceptance orrejection ofrelevant arguments orclaims made... ”Please clarify how
these requirements willbesatisfied.
5. TheNotification doesnotinclude arequirement thatauthorities consider themagnitude ofthe
dumping margin inassessing material injury. Howisthisconsistent withArticle 3.4oftheAntidumping
Agreement?
Customs LawNumber 10
6. Articles18and21ofChapterIVofIndonesia’sLawNumber10,1995,providethatantidumping
orcountervailing duties maybeapplied toimported goods if(among other things) theimportation of
thegoods “threaten thedomestic industry thatproduces similar goods. ”How arethese provisions
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consistent withArticle VI(6)(a) oftheGATT, which provides thatparties maylevyantidumping or
countervailing duties onimports that“threaten material injury (emphasis added) ”tothedomestic
industry?
7. Article 19(1) ofChapter IVofLawNumber 10states thatantidumping duties willbeapplied
“atthemaximumamountofthemarginbetweennormalvalueandexportprice.”Similarly,Article22(1)
states thatcountervailing duties willbeapplied “atthemaximum amount ofthemargin. ”Finally,
theExplanatory oftheCustoms LawoftheRepublic ofIndonesia, intheexplanation ofArticle 18,
states thatwhen comparisons aremade tothirdcountries, theywillbebased on“thehighest price of
thesimilar goods. ”Does thismean thatduties willbelevied based onthehighest margin ofdumping
orsubsidies found, rather thantheweighted-average margin ofdumping orsubsidies?
Explanatory Notes toCustoms LawNumber 10
8. How isthedefinition of“domestic industry ”contained intheexplanatory notes toLaw
Number 10,which appears toprovide thatthedomestic industry needonlyinclude one“domestic
producer ofsimilar goods, ”consistent withthedefinition of“domestic industry ”setforthinArticle 4.1
ofthe1994AgreementonImplementationofArticleVIoftheGATT(hereinafter,the“ADAgreement”)
andArticle 16.1ofthe1994 Agreement onSubsidies andCountervailing Measures (the“Subsidy
Agreement ”),which require thatthe“domestic industry ”include the“domestic producers asawhole
ofthelikeproducts”orthosedomesticproducerswhosecollectiveoutputrepresents“amajorproportion”
ofthetotaldomestic production ofthelikeproducts? How isitconsistent withthedefinition of
“domestic industry ”setforth inArticle 1.8ofGovernment Regulation 34for1996, which contains
similar provisions tothose setforth intheADAgreement andtheSubsidies Agreement?
9. Howisthedefinition of“similar goods ”contained intheexplanatory notes toLawNumber 10
consistent withthedefinition of“likeproduct ”setforth inArticle 2.6oftheADAgreement? How
isitconsistentwiththedefinitionof“likeproduct”setforthinArticle1.8ofGovernmentRegulation34?
10. Isthemeaning ofthephrase “incommon trade”when defining normal value inArticle 18
oftheexplanatory notes thesame asthemeaning ofthephrase “intheordinary course oftrade”when
defining normal value inArticle 1oftheRegulation?
Government Regulation 34
11. Article 1.11ofGovernment Regulation 34for1996appears toprovide thatantidumping and
countervailing duties maybeimposed onimports if(among other things) theimports cause “injury ”
orthreaten“injury”toadomesticindustryproducingthelikeproduct.IsthisconsistentwithArticle6(a)
oftheGATT, which requires thatinjury (whether actual orthreatened) be“material ”?
12. Howisitthatimportedgoodsare“alleged”tobedumpedinChapter3Article9ofRegulation34
ifthisprovision regards investigations thatarenotpursuant toapplications fromdomestic industries?
13. CantheMinisterstilldeclinetoimposeantidumpingorcountervailingdutiesoncetheCommittee
“proposes[s] ”theirimposition, under Chapter 3Article 12ofRegulation 34?
14. Canyouexplain whatismeant bytheprovision contained inArticle 13ofRegulation 34which
provides that,when conducting antidumping orsubsidy investigations, theIndonesian Antidumping
Committee (“IAC”)shall“givepieces ofwritten evidence fromoneinterest partytoanother bykeeping
thepieces ofevidence secret ”?G/ADP/Q1/IDN/3
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15. AreArticles 14(1)(c) and(e)ofRegulation 34,which provide thattheIAC“may”provide
interested parties withallrelevant information and“may”inform them ofanyimportant information
servingasabasisforitsfinalantidumpingorcountervailingdutydecisions,consistentwiththeprovisions
ofArticles 6.4and6.9oftheADAgreement andArticles 12.3and12.8oftheSubsidies Agreement,
which statethattheauthorities ”shall”make suchinformation available tointerested parties?
16. Aretheprovisions ofArticle 16(2) and(3)ofRegulation 34,which allow theIACtorestrict
thenumber ofexporters andimporters investigated bythecommittee, intended toapply onlytothe
calculation ofantidumping margins, ascontemplated inArticle 6.10oftheADAgreement?
17. Chapter1,Article1.5ofGovernmentRegulation34definesasubsidyas“anyfinancialassistance
directly orindirectly provided bythegovernment orpublic body tocompanies, industries, group of
industries, orexporters ”or“anyform ofsupport onincome orprice directly orindirectly provided
withaviewtoincreasing export ordecreasing import from ortothecountries concerned... ”Does
Indonesia consider whether abenefit hasbeenincurred asaresult ofsuchfinancial assistance orsupport,
asrequired byArticle 1.1(b) oftheWTO Agreement onSubsidies andCountervailing Measures (SCM
Agreement)?
18. DoesthedefinitioninArticle1.5ofGovernmentRegulation34excludenon-actionablesubsidies,
asdefined under Article 8oftheSCM Agreement? Arenon-actionable subsidies countervailable under
Indonesian laworpractice?
19. Aretheforms ofsupport inArticle 1.5(b) ofGovernment Regulation 34meant tobethose
provided onlybythegovernment, ordotheyinclude those bytheprivate sector entrusted ordirected
bythegovernment, acting inagovernment capacity?
20. Istheexport subsidy language inArticle 1.5ofGovernment Regulation 34-“withaviewto
increasing export ”-meant tobeasprecise astheSCM Agreement ’slanguage stating thatactionable
export subsidies arethose “contingent upon export performance? ”
21. Please clarify Chapter 1,Articles 2and3oftheRegulation, which statethatimports maybe
subject toimport duties inaddition toantidumping orcountervailing duties ifthose imports arefound
tobedumped orsubsidies andfound tobecausing injury. Please describe these additional duties.
Iftheantidumping orcountervailing duties aredesigned toremedy thedumping orsubsidization, why
areadditional remedial duties required?
22. Chapter 3,Article 8oftheRegulation states thattheMinister ofIndustry andTrade “shall
stipulate therequirements ”ofapetition forantidumping orcountervailing duties. Could youspecify
theexact requirements ofapetition?
23. Chapter 7,Article 32oftheRegulation combines Committee-initiated andparty-initiated review
intooneprovision. Does theuseofthewords “maybereviewed ”provide parties withaguaranteed
righttoreview, provided theymake aproper request? Isthisamatter ofadministrative burden?
24. Chapter 7,Article 33oftheRegulation stipulates thattheimposition ofduties maybecontinued
ordiscontinued asaresult ofareview bytheCommittee. Canthelevel ofthedutybechanged as
aresult ofareview, ordoesthelevelofduties always remain thesameifduties continue tobeimposed?
25. Article 35ofGovernment Regulation 34allows parties tofile“objections ”toantidumping
orcountervailing duties withthe“Appeal Institute referred toinArticle 97ofLawNo10of1995
regarding Customs Affairs. ”Isthisappeal process a“prompt ”one,asrequired byArticle 13oftheG/ADP/Q1/IDN/3
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ADAgreement andArticle 23oftheSubsidies Agreement? IstheAppeal Institute anentity independent
fromtheauthorities responsible fortheantidumping orcountervailing dutydetermination onappeal,
asrequired bythesame provisions oftheADandSubsidies Agreements? Cananyinterested party
appeal thedetermination? Cananymatter regarding interpretation oflaworinterpretation offactbe
appealed byanyinterested party?