RESTRICTED
WORLD TRADE G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
ORGANIZATION 27May1997
(97-2217)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofINDONESIA1
toQuestions posed bytheEUROPEAN COMMUNITY2,
HONG KONG3,KOREA4,TURKEY5andtheUNITED STATES6
Thefollowing communication, dated 12May1997, hasbeenreceived from thePermanent
Mission ofIndonesia.
_______________
CONTENTS
Page
1. Replies toquestions posed bytheEuropean Commission ...................2
2. Replies toquestions posed byHong Kong .............................2
3. Replies toquestions posed byKorea ................................5
4. Replies toquestions posed byTurkey ...............................6
5. Replies toquestions posed bytheUnited States .........................8
1G/ADP/N/1/IDN/2-G/SCM/N/1/IDN/2.
2G/ADP/Q1/IDN/1-G/SCM/Q1/IDN/1,3G/ADP/Q1/IDN/4-G/SCM/Q1/IDN/4,4G/ADP/Q1/IDN/5-
G/SCM/Q1/IDN/5,5G/ADP/Q1/IDN/2-G/SCM/Q1/IDN/2,6G/ADP/Q1/IDN/3-G/SCM/Q1/IDN/3.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
Page2
REPLIES TOQUESTIONS POSED BYTHE EUROPEAN COMMISSION
Q.1 Articles 18(3), (4)and(5)arenotentirely clear. Could Indonesia explain inwhich precise
circumstances itwould apply provisional measures fornineinstead ofsixmonths?
Reply
Indonesia willapply provisional measures forninemonths where theresults oftheinvestigation
bytheAuthorities concerned considered thatadutylower thanthemargin ofdumping maybesufficient
toremove theinjury established.
Q.2. Article 26(2)(a) doesnotmake itentirely clear what dutyratewillbeapplied tocooperative
companies notselected forthesample. What does"onthebasis ofevidence orinformation" mean?
Reply
Cooperating companies notselected forthesample willfaceweighted average dumping margin
ofthecompanies sampled. Theevidence ofinformation refers totheinformation supplied andverified
inthequestionnaires sentoutandcompleted bythesampled companies
Q.3. Article 31(1) laysdown thatmeasures mayapply forfiveyears. Where inthelawisit
setoutthatsuch measures canonlybeextended beyond fiveyears ifareview covering both
dumping andinjury iscarried out?
Reply
TheGovernment ofIndonesia willapply Article 11oftheAgreement.
Q.4. Please explain Article 31(4)(a). Itappears tosaythatiftherelevant goods arefound to
bedumped thatthefirstpartofthetestforretroactivity (ahistory ofdumping) would bemet.
Isthiscorrect?
Reply
TheGovernment ofIndonesia willonlyconsider applying retroactively anti-dumping duties
iftherequirements oftheAgreement aremettoinclude ahistory ofdumping.
REPLIES TOQUESTIONS POSED BYHONG KONG
Legal Status oftheADAgreement
Q.1. AreIndonesia ’sADofficials required, legally orotherwise, toobserve theprovisions of
theAgreement intheconduct ofADproceedings ortoconsult them? Ifthenotified legislation
isinconflict withtheAgreement, which willtakeprecedence?
Reply
Thepractice oftheGovernment ofIndonesia andtheofficials concerned istoapply theCustoms
Laws andRegulations notified incompliance withtheAgreement.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Legal Status ofnotified text
Q.2. What isthelegal status ofthetextunder thetitle"Explanatory theCustoms Lawofthe
Republic ofIndonesia Number 10of1996" (pages 6-8ofG/ADP/1/IDN/2)? Doesithavetheforce
oflaw?
Reply
Explanatory oftheCustoms LawoftheRepublic ofIndonesia isanintegral partoftheCustom
Lawandtherefore hastheforce oflaw.
Judicial Review Procedures
Q.3. What judicial review procedures hasIndonesia putinplace inobservance ofitsobligations
under Article 13(Judicial Review) oftheAgreement?
Reply
TheGovernment ofIndonesia wishes torefertoArticle 97LawNumber 10of1995regarding
Customs Affairs. TheAppeal Institute referred toisinfullcompliance withArticle 13oftheAnti-
Dumping Agreement andArticle 23oftheSubsidies Agreement.
Implementation ofPanel Reports
Q.4. What isIndonesia ’spolicy andlawfortheimplementation ofWTO Panel Reports?
Reply
TheGovernment ofIndonesia willfollow thegeneral policy ofallMembers withregard to
theadoption ofPanel reports.
Commencement ofProcedure
Q.5. Article 5.2oftheAgreement setouttheprocedures fortheinitiation ofaninvestigation.
Article12.1.1oftheAgreementalsorequiresthatapublicnoticeoftheinitiationoftheinvestigation
should contain, orotherwise make available through aseparate report, adequate information
including thebasis onwhich dumping isalleged andasummary ofthefactors onwhich the
allegation ofinjury isbased.
Article 8(1)oftheGovernment Regulation No.34specifies thatdomestic industries may
fileanapplication toconduct aninvestigation andArticle 10requires thedecision toinitiate
investigation benotified inadvance tointerested parties. Theprocedures andinformation specified
inArticles 5.2and12.1.1 oftheAgreement arenotincluded intheIndonesian legislation.
Question:
Would Indonesia clarify whether alltheprocedures andinformation specified under
Articles 5.2and12.1.1 oftheAgreement willbefollowed andpublished?G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Reply
Please refertopoint 1.Article 5.2and12.1.1 arefullyadhered to.
Investigation
Q.6. Article 13(b) oftheGovernment Regulation No.34provides forthetime-limit forreply
toquestionnaires.
Questions:
(a) Isthere anygeneral ruleforthedateofreceipt ofthequestionnaire bytheparties
concerned? Isthedateofreceipt ofthequestionnaire deemed tobeoneweek from
thedayonwhich itwassentasprovided forinFootnote 15oftheAgreement?
(b) Isextension ofthetime-limit forsubmitting questionnaires allowed bythe
Committee asprovided forinArticle 6.1.1 oftheAgreement?
Reply
(a) TheGovernment ofIndonesia hassetaperiod of37daysfortheinterested parties
torespond tothequestionnaire.
(b) TheGovernment ofIndonesia willallow theextension ofthedeadline based onthe
merits oftherequest made andbearing inmind thestatutory deadlines imposed.
Cumulation ofImports forAssessment
Q.7. Article 28(3) oftheRegulation provides thatADduties maybeimposed onanyimport
ofdumped goods from several exporters orrelevant exporting countries.
Subject tocertain conditions, Article 3.3oftheAgreement permits cumulative assessment
ofeffects ofimports from more thanonecountry ifsuchimports aresimultaneously subject to
anti-dumping investigations.
Question:
Could theeffect ofimports from countries simultaneously subject toADinvestigation be
assessed cumulatively? Ifso,would Indonesia explain howitwould implement itsobligation under
Article 3.3oftheAgreement?
Reply
TheIndonesianAuthoritieswillassessimportcumulativelyprovidedthatthetermsofArticle3.3
oftheAgreement aremet.
KeyIssues intheWTO ADAgreement found silent intheIndonesian Legislation
Q.8. Numerous provisions oftheAgreement arenotfeatured intheIndonesian Legislation,
orthecodification maynotbeadequate. Notable examples areasfollows:G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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- establishment ofnormal value (Article 2.2)
- notion offaircomparison andprovisions (Article 2.4)
- exchange rates (Article 2.4.1)
- comparison methodology (Article 2.4.2)
- determination ofinjury (Article 3.1,3.4and3.5)
- threat ofmaterial injury (Article 3.7)
- standing ofcomplainant (Article 5.4)
- deminimis dumping margin andnegligible imports forimmediate termination
(Article 5.8)
- provision offulltextofwritten application totheknown exporters, theexporting
country andinterested parties (Article 6.1.3)
- newcomer review (Article 9.5)
Questions:
(a) Intheabsence ofexplicit domestic provisions reflecting theabove Agreement
provisions, howwillIndonesia ensure compliance withtheAgreement?
(b) WillIndonesia contemplate further legislative steps toensure theconformity of
itslegislation andadministrative procedures withtheprovisions oftheAgreement,
inaccordance withArticle 18.4?
Reply
Although theIndonesian Anti-Dumping Lawdoesnotexplicitly raise allprovisions ofthe
Agreement, theAgreement prevails.
REPLIES TOQUESTIONS POSED BYKOREA
Q.1. Determination ofdeminimis basis
Article 26oftheIndonesian ADRegulation stipulates "indetermining certain tariffs ...
dumping margins withzerovalue orverysmall value (deminimis )shall beexcluded from the
calculation ofcertain tariffs".
However, Article 5.8oftheWTO ADAgreement stipulates that"themargin ofdumping
shall beconsidered tobedeminimis ifthismargin islessthan 2%,expressed asapercentage
oftheexport price".
TheIndonesian provisions forthedefinition ofdeminimis donotseem tobeclear. How
doestheIndonesian authority determine deminimis margins?
Reply
Thedeminimis provisions established inArticle 5.8oftheAgreement willbeapplied bythe
Government ofIndonesia. Companies whose dumping margin isfound tobelessthan2%willbe
excluded from theimposition ofmeasures.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Q.2. Standard fornegligible volume
Article 5.8oftheWTO ADAgreement stipulates that"thevolume ofdumped imports
shallnormally beregarded asnegligible ifthevolume ofdumped imports fromaparticular country
isfound toaccount forlessthan3%ofimports ofthelikeproduct intheimporting Member".
Does theIndonesian authority haveanother standard forthedetermination ofnegligible
volume?
Reply
TheIndonesian authorities willalsofullycomply totherequirements ofnegligible imports
laiddown inArticle 5.8oftheAgreement.
Q.3. General
TheIndonesian ADregulations asawhole seem tobelacking inmany issues compared
totheWTO ADAgreement. Ithasbeennoted thatthere isalackofclarity regarding thefollowing
issues inparticular:
- Market visibility
- Start-up costadjustment
- SG&A, profit forconstructed value
- Adjustments toexport price andnormal value
- Level oftrade adjustments
How willtheIndonesian authorities dealwiththese technical criteria?
Reply
TheIndonesian authorities willfullycomply withalltherequirements oftheWTO Agreement.
While thismaynecessitate certain changes totheIndonesian Anti-Dumping Law, inthemeantime the
anti-dumping proceeding brought todate, scrupulously adhere toallaspects oftheAgreements.
REPLIES TOQUESTIONS POSED BYTURKEY
Q.1. Article 19oftheCustoms Law(p.4)states that"Anti-dumping duties shall beimposed
ontheimported goods asreferred toinArticle 18atmaximum amount ofthemargin between
normal value andexport price ofsuchgoods". Also, there isasimilar provision inArticle 4of
theRegulation (p.12)which states thattheanti-dumping andcountervailing measures willbe
ashighasthedumping margin andnetsubsidies. However, inArticle 26.1oftheRegulation
(p.19)itisstated that"theMinister ofIndustry andTrade shall decide certain tariffs forthe
imposition ofanti-dumping andcountervailing duties thatareequal toorlessthanthedumping
margin and/or netsubsidies".
Within thisframework:
(a) Incaseofconflict, doestheCustoms LawortheRegulation prevail inapplication
intheIndonesian legislative system andifsuch aconflict occurs between the
domestic andWTO provisions, which onewillprevail?G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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(b) IftheCustoms Lawprevails then, would youplease clarify these provisions in
relation toArticle 9.1oftheADAgreement?
Reply
There isnoconflict between theCustoms LawandtheRegulation which would result inthe
WTO provisions being violated. Thepractice oftheGovernment ofIndonesia istoapply theCustoms
Laws andRegulations notified incompliance withtheAgreement.
Q.2. How dotheIndonesian authorities interpret Article 1(8)(b) oftheRegulation (p.10)in
connection withArticle 5.4oftheADAgreement?
Reply
TheIndonesian authorities willapply thefullprovisions ofArticle 5.4oftheAgreement.
Q.3. Would youplease specify therequirements foranapplication tobeaccepted withrespect
toArticle 8oftheRegulation (p.13)?
Reply
TheIndonesian authorities willaccept anapplication provided thattheterms ofArticle 5of
theAgreement aremet.
Q.4. Article 14.(1)(c) oftheRegulation (page 14)states that"...theCommittee mayprovide
interested parties theopportunity toexamine allpieces ofrelevant andunsecret information used
intheinvestigation". Interested parties have theright toexamine therelevant information and
theauthorities areobliged toprovide itwith respect totheprovisions oftheAnti-Dumping
Agreement Article 6.2. Considering theprovisions oftheabove-mentioned Article ofthe
Agreement, howdotheIndonesian authorities interpret Article 14,paragraphs (c)and(f)ofthe
Regulation (p.14,15)?
Reply
Allinterested parties shallhavethefullrights conferred byArticle 6oftheAgreement.
Q.5. What isthepolicy andlawofIndonesia oftheimplementation ofWTO Panel Reports?
Reply
Indonesia willfollow thesame policy asother Members regarding panel reports.
Q.6. How dotheIndonesian authorities calculate theweighted average dumping margin (the
Regulation Article 26.2, p.19)? Isthere anyspecific definition ofthemethod tobeusedinthis
calculation? Ifnot,would youplease explain themethod employed inthedetermination ofdumping
margins andcomment onitsconformity withthemethods defined inArticle 2.4.2 oftheAD
Agreement?G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
Page8
Reply
Provided thatthereisnosignificant fluctuation inexport prices, theweighted average dumping
margin isacomparison oftheweighted average normal value compared withtheweighted average
export price atthesame leveloftrade. Thedumping margin isthenexpressed asapercentofthe
weighted average c.i.f. price.
Q.7. Would youplease explain themethod of"calculation ofcertain tariffs" (theRegulation
Article 26.3, p.19)?
Reply
Article 26refers tosampling. Cooperating companies notsubject ofthesample willface
theweighted average dumping margin ofcooperating companies.
Q.8. Doesthe"stipulation dateoftheDecision oftheMinister ofFinance" mean thepublication
dateofthedecision intheOfficial Gazette? Ifnot,would youplease explain theabove-mentioned
term (Article 29andArticle 31oftheRegulation, p.19and20)?
Reply
Thestipulation dateoftheDecision oftheMinister ofFinance could (not)bethesame asthe
publication dateoftheDecision ontheofficial gazette. However, thelaterwillnotbeearlier than
thestipulation dateoftheDecision oftheMinister ofFinance.
Q.9. CouldyoupleaseclarifywhetherIndonesiahasanindependentagencychargedwithjudicial
review oftheADandCVD determinations asrequired bytheADandSCM Agreements (Article 13
andArticle 23respectively)? IftheAppeal Institute isconsidered tobetheindependent agency,
would youplease clarify whether theAppeal Institute fortheobjections totheADand
Countervailing Duties isanindependent agency inthemanner defined bytheADandSCM
Agreements (theRegulation, Article 35,p.21)? Also, would youplease explain thelegal status
oftheInstitute andtheauthorities whoappoint themembers andthepresident oftheInstitute?
Reply
TheGovernment ofIndonesia wishes torefertoArticle 97LawNumber 10of1995regarding
Customs Affairs. TheAppeal Institute referred toisinfullcompliance withArticle 13oftheAnti-
Dumping Agreement andArticle 23oftheSubsidies Agreement.
REPLIES TOQUESTIONS POSED BYTHE UNITED STATES
Q.1. Isitcorrect toassume thatwherever theCustoms LawandRegulations notified inthis
document(G/ADP/N/1/IDN/2-G/SCM/N/1/IDN/2)aresilentonanissuecoveredbytheAgreements,
theAgreements willprevail?
Reply
Thepractice oftheGovernment ofIndonesia istoapply theCustoms Laws andRegulations
notified incompliance withtheAgreement.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Q.2. How doesIndonesia ’santi-dumping statute orregulations provide forthetermination
ofananti-dumping orcountervailing dutyinvestigation withrespect toimports from anycountry
thatare“negligible ”,asrequired byArticle 5.8oftheADAgreement andArticle 11.9ofthe
Subsidies Agreement?
Reply
TheIndonesianauthoritieswillterminateaninvestigationagainstacountrywhereitisestablished
thatthecountries exports represent lessthan3%ofthetotallikeproduct imported intoIndonesia unless
thecountries which individually account forlessthan3%ofthelikeproducts intheimporting Member
collectively account formore than7%ofimports ofthelikeproducts intheimporting Member. If
theinformation inhand soallows, thepractice oftheIndonesian authorities istoexclude countries
prior totheinitiation ofproceeding ifitisestablished thattherequirement ofArticle 5.8ofthe
Agreement aremet.
Q.3. How does Indonesia implement Article 3oftheADAgreement andArticle 15ofthe
Subsidies Agreement, which require consideration ofspecific factors when analysing whether
dumped orsubsidized imports havecaused material injury orthreatened tocause material injury
tothedomestic industry?
Reply
Adetermination ofmaterial injury orthreat ofmaterial injury involves adetailed assessment
ofallthefactors outlined under Articles 3oftheAnti-Dumping Agreement andArticle 15ofthe
Subsidies Agreement. TheIndonesian authorities have established aKomite Anti-Dumping
Indonesia/IndonesianAnti-DumpingCommittee(KADI)responsibleforverifyingtheallegationscontained
inanapplication. Aswithmost investigating authorities, thisinvolves requesting interested parties
tocomplete questionnaire, toundertake on-the-spot investigation, etc.Allspecific factors considered
ofrelevance aretaking intoaccount.
Q.4. Articles 12.2.1(v) and12.2.2. oftheAnti-Dumping Agreement, andArticles 22.4(v) and
22.5oftheSCM Agreement require disclosure of“themain reasons leading tothedetermination ”
and“thereasons fortheacceptance orrejection ofrelevant arguments orclaims made ...”.Please
clarify howthese requirements willbesatisfied.
Reply
Assoonasprovisional measures areannounced, allinterested parties receive acopyofthe
announcement andadetailed non-confidential summary uponwhich thepreliminary determination is
based, andthereason forthedetermination inlightofthefindings andarguments raised. Withregard
todisclosures offindings forinterested parties which areconfidential innature, these disclosures are
available onrequest totheKADI within thetime-limits laiddown. Prior totheformal publication
ofthedefinitive determination, allparties concerned willreceive theproposed definitive determination,
aswellasaconfidential report available onrequest totheinterested parties concerned.
Q.5. Thenotification doesnotinclude arequirement thatauthorities consider themagnitude
ofthedumping margin inassessing material injury. How isthisconsistent withArticle 3.4of
theAnti-Dumping Agreement?G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
Page10
Reply
Please refertopoint1above. Themagnitude ofthedumping margins isconsidered ofrelevance
intheinjury determination .
Customs LawNumber 10
Q.6. Articles 18and21ofChapter IVofIndonesia ’sLawNumber 10,1995, provide thatanti-
dumping orcountervailing duties maybeapplied toimported goods if(among other things) the
importation ofthegoods “threaten thedomestic industry thatproduces similar goods ”.How
arethese provisions consistent withArticle VI(6)(a) oftheGATT, which provides thatparties
maylevyanti-dumpingorcountervailingdutiesonimportsthat“threatenmaterialinjury(emphasis
added) ”tothedomestic industry?
Reply
Please refer topoint 1above. TheGovernment ofIndonesia willonlyapply anti-dumping
measures where imports threaten material injury tothedomestic industry.
Q.7. Article 19(1) ofChapter IVofLawNumber 10states thatanti-dumping duties willbe
applied “atthemaximum amount ofthemargin between normal value andexport price”.
Similarly, Article 22(1) states thatcountervailing duties willbeapplied “atthemaximum amount
ofthemargin ”.Finally, theExplanatory oftheCustoms LawoftheRepublic ofIndonesia, in
theexplanation ofArticle 18,states thatwhen comparisons aremade tothird countries, they
willbebased on“thehighest price ofthesimilar goods ”.Doesthismean thatduties willbelevied
based onthehighest margin ofdumping orsubsidies found, rather thantheweighted-average
margin ofdumping orsubsidies?
Reply
Please refertopoint 1.Dumping/subsidy margins arebased ontheweighted average margin
provided thattherequirements forusing theweighted average approach aremet.
Explanatory Notes toCustoms LawNumber 10
Q.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 ”setforth in
Article 4.1ofthe1994 Agreement onImplementation ofArticle VIoftheGATT (hereinafter,
the“ADAgreement ”)andArticle 16.1ofthe1994 Agreement onSubsidies andCountervailing
Measures (the“Subsidy Agreement ”),which require thatthe“domestic industry ”include the
“domestic producers asawhole ofthelikeproducts ”orthose domestic producers whose collective
output represents “amajor proportion ”ofthetotal domestic production ofthelikeproducts?
How isitconsistent with thedefinition of“domestic industry ”setforth inArticle 1.8of
Government Regulation 34for1996, which contains similar provisions tothose setforth inthe
ADAgreement andtheSubsidies Agreement?
Reply
Please refertopoint 1above. Thedomestic industry mayconsist ofoneproducer provided
thattherelevant requirements oftheAgreements aremet.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Q.9. How isthedefinition of“similar goods ”contained intheexplanatory notes toLaw
Number 10consistent withthedefinition of“likeproduct ”setforth inArticle 2.6oftheAD
Agreement? How isitconsistent withthedefinition of“likeproduct ”setforth inArticle 1.8
ofGovernment Regulation 34?
Reply
Please refertopoint 1.Thedefinition oflikeproduct under Article 2.6oftheAgreement is
upheld bytheIndonesian authorities.
Q.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?
Reply
Thetermcommon trade maybeconsidered equivalent tothenormal course oftrade.
Government Regulation 34
Q.11. Article 1.11ofGovernment Regulation 34for1996appears toprovide thatanti-dumping
andcountervailing duties maybeimposed onimports if(among other things) theimports cause
“injury ”orthreaten “injury ”toadomestic industry producing thelikeproduct. Isthisconsistent
with Article 6(a)oftheGATT, which requires thatinjury (whether actual orthreatened) be
“material ”?
Reply
Please refertopoint 1above.
Q.12. How isitthatimported goods are“alleged ”tobedumped inChapter 3Article 9of
Regulation 34ifthisprovision regards investigations thatarenotpursuant toapplications from
domestic industries?
Reply
TheIndonesianauthoritiesdonotenvisageinvokingtherightsunderArticle5.6oftheAgreement
unless there issufficient evidence ofdumping andinjury andacausal link. Inthiscontext, the
Indonesian authorities consider thatthespecial circumstances referred tocould ariseif,forexample,
aninterested party provides evidence ofalleged dumping tojustify theextension ofaproceeding even
though theapplication doesnotlodge sucharequest.
Q.13. CantheMinister stilldecline toimpose anti-dumping orcountervailing duties oncethe
Committee “proposes[s] ”their imposition, under Chapter 3Article 12ofRegulation 34?
Reply
TheMinister maydecide nottofollow therecommendations oftheCommittee.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Q.14. Canyouexplain what ismeant bytheprovision contained inArticle 13ofRegulation 34
which provides that, when conducting anti-dumping orsubsidy investigations, theIndonesian
Anti-dumping Committee (“IAC”)shall“givepieces ofwritten evidence from oneinterest party
toanother bykeeping thepieces ofevidence secret ”?
Reply
TheIndonesian authorities willmake available allnon-confidential information tointerested
parties. Confidential information istreated assuchandmayonlybemade available uponthespecific
permission oftheparty concerned.
Q.15. AreArticles 14(1)(c) and(e)ofRegulation 34,which provide thattheIAC“may”provide
interested parties with allrelevant information and“may”inform them ofanyimportant
information serving asabasisforitsfinalanti-dumping orcountervailing dutydecisions, consistent
withtheprovisions ofArticles 6.4and6.9oftheADAgreement andArticles 12.3and12.8of
theSubsidies Agreement, which statethattheauthorities ”shall”make suchinformation available
tointerested parties?
Reply
Allinterested parties willbegiven fulldisclosure ofthefactsuponwhich thepreliminary and
definitive determination arebased.
Q.16. Aretheprovisions ofArticle 16(2) and(3)ofRegulation 34,which allow theIACtorestrict
thenumber ofexporters andimporters investigated bythecommittee, intended toapply only
tothecalculation ofanti-dumping margins, ascontemplated inArticle 6.10oftheADAgreement?
Reply
Theresort tosampling mayprove necessary tocover dumping andalsoinjury.
Q.17. Chapter 1,Article 1.5ofGovernment Regulation 34defines asubsidy as“anyfinancial
assistance directly orindirectly provided bytheGovernment orpublic body tocompanies,
industries, group ofindustries, orexporters ”or“anyform ofsupport onincome orprice directly
orindirectly provided withaviewtoincreasing export ordecreasing import fromortothecountries
concerned ...”.Does Indonesia consider whether abenefit hasbeenincurred asaresult ofsuch
financial assistance orsupport, asrequired byArticle 1.1(b) oftheWTO Agreement onSubsidies
andCountervailing Measures (SCM Agreement)?
Reply
Indonesia willcomply withtherequirements ofArticle 1.1oftheWTO Agreement onSubsidies
andCountervailing Measures.
Q.18. Does thedefinition inArticle 1.5ofGovernment Regulation 34exclude non-actionable
subsidies, asdefined under Article 8oftheSCM Agreement? Arenon-actionable subsidies
countervailable under Indonesian laworpractice?
Reply
Article 1.5doesnotexclude non-actionable subsidies.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Q.19. Aretheforms ofsupport inArticle 1.5(b) ofGovernment Regulation 34meant tobethose
provided onlybytheGovernment, ordotheyinclude those bytheprivate sector entrusted or
directed bytheGovernment, acting inagovernment capacity?
Reply
TheformsofsupportmentionedinArticle1.5alsoincludetheprivatesectorentrustedordirected
bytheGovernment.
Q.20. Istheexport subsidy language inArticle 1.5ofGovernment Regulation 34-“withaview
toincreasing export ”-meant tobeasprecise astheSCM Agreement ’slanguage stating that
actionable export subsidies arethose “contingent upon export performance? ”
Reply
Thestatement withaviewtoincreasing exports maybeconsidered equivalent tocontingent
upon export performance.
Q.21. Please clarify Chapter 1,Articles 2and3oftheRegulation, which statethatimports may
besubject toimport duties inaddition toanti-dumping orcountervailing duties ifthose imports
arefound tobedumped orsubsidies andfound tobecausing injury. Please describe these
additional duties. Iftheanti-dumping orcountervailing duties aredesigned toremedy thedumping
orsubsidization, whyareadditional remedial duties required?
Reply
There arenoadditional duties other thanthose applied toeliminate dumping andsubsidization.
Q.22. Chapter 3,Article 8oftheRegulation states thattheMinister ofIndustry andTrade “shall
stipulate therequirements ”ofapetition foranti-dumping orcountervailing duties. Could you
specify theexact requirements ofapetition?
Reply
TherequirementsofapetitionarethoselaiddownintheAgreementonDumpingandAgreement
onSubsidies andCountervailing Measures. TheMinister ofIndustry andTrade isresponsible for
deciding whether theapplication meets therequirements laiddown ontheMinisterial Decree
No.261/MPP/Kep/1996 regarding theprocedures andrequirements forpetition oninvestigation into
dumped andsubsidized goods. ThisDecree regulates theadministrative procedures andrequirements
thatmust bemetbyapetitioner.
Q.23. Chapter 7,Article 32oftheRegulation combines Committee-initiated andparty-initiated
review intooneprovision. Does theuseofthewords “maybereviewed ”provide parties with
aguaranteed right toreview, provided they make aproper request? Isthisamatter of
administrative burden?
Reply
Theinitiation ofareview isconditional onthemerits oftheapplication lodged.G/ADP/Q1/IDN/6
G/SCM/Q1/IDN/6
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Q.24. Chapter 7,Article 33oftheRegulation stipulates thattheimposition ofduties maybe
continued ordiscontinued asaresult ofareview bytheCommittee. Canthelevel oftheduty
bechanged asaresult ofareview, ordoesthelevelofduties always remain thesame ifduties
continue tobeimposed?
Reply
Review mayleadtoachange inortheelimination ofanti-dumping measures. Thiswilldepend
onchanged circumstances upon which thereview isbased.
Q.25. Article 35ofGovernment Regulation 34allows parties tofile“objections ”toanti-dumping
orcountervailing duties withthe“Appeal Institute referred toinArticle 97ofLawNo10of1995
regarding Customs Affairs ”.Isthisappeal process a“prompt ”one,asrequired byArticle 13
oftheADAgreement andArticle 23oftheSubsidies Agreement? IstheAppeal Institute anentity
independent from theauthorities responsible fortheanti-dumping orcountervailing duty
determination onappeal, asrequired bythesame provisions oftheADandSubsidies Agreements?
Cananyinterested party appeal thedetermination? Cananymatter regarding interpretation
oflaworinterpretation offactbeappealed byanyinterested party?
Reply
TheGovernment ofIndonesia wishes torefertoArticle 97LawNumber 10of1995regarding
Customs Affairs. TheAppeal Institute referred toisinfullcompliance withArticle 13oftheAnti-
Dumping Agreement andArticle 23oftheSubsidies Agreement.