RESTRICTED
WORLD TRADE G/ADP/AHG/W/1
17March 1997
ORGANIZATION(97-1062)
Original: English Committee onAnti-Dumping Practices
AdHocGroup onImplementation
TOPICS 2,5,7AND 8*
Proposals byIndia
Thefollowing communication, dated 12March 1997, hasbeenreceived fromthePermanent
Mission ofIndia.
_______________
I. PERIOD OFINVESTIGATION
Foradumping investigation, theinvestigating authorities have todetermine aPeriod of
Investigation (POI) which istheperiod forwhich dataistobecollected fortheinvestigation. There
arenoguidelines intheAgreement either fortheperiod taken intoconsideration (sixmonths, ayear,
etc.)orthetimedifference between theinitiation ofinvestigation andthePOI(sixmonths before
initiation, immediately priortoinitiation, etc.). Infact,except inthecaseofnewcomer reviews under
Article 9.5,thetermperiod ofinvestigation alsodoesnotseem tofigure anywhere intheAgreement.
Duetolackofaspecific provision inthematter, eachMember hasitsowncriteria todetermine the
POI. Instances ofthePOIrange from sixmonths tothree tofouryears. Similarly instances ofthe
lastdateofPOIrange from oneyeartothelatest available period. Further, there isnoconnection
ofthePOIwiththeaccounting period ofeither theinvestigating country orthecountry ofinvestigated
exports. Suchdiscretionary setting upofthePOIgives risetovarious administrative andaccounting
problems putting aheavy strain ontheresponding companies. Toprovide better credibility and
convenience ininvestigations, suggestions maybeinvited intheAdHocGroup.
Some suggestions which could bediscussed are:
(1) Normally much timeshould notbegiven between thedateofinitiation andtheendofthePOI.
Factors suchasavailability andreliability ofthetrade dataandconvenience ofcollection of
suchdatabytheresponding companies could beconsidered.
(2) Most oftheMembers adopt either thecalendar orthefiscal yearastheaccounting yearfor
business. Theaccounting yearadopted byinvestigated companies could bethedetermining
factor forthePOI.
(3) Theperiod lapsed between thedateoffiling oftheapplication andthedateofinitiation of
investigation could alsobedetermined forsetting upthePOI.
*Seedocument G/ADP/W/401 fordescriptions oftopics.G/ADP/AHG/W/1
Page2
(4) Ifthesubject merchandise isamenable toseasonalities intrade, suchseasonalities should be
afactor ofconsideration. Forexample, cotton year, coffee year, etc.
(5) Theperiod inwhich thePOIisspread overshould normally notexceed oneyear, unless cyclic
orother factors connected withthemerchandise inquestion necessitate alonger POI.
II. NOTIFICATION TOTHE GOVERNMENT OFTHE EXPORTING MEMBER
Article 5.5oftheAnti-Dumping Agreement requires thattheauthorities shall notify the
Government oftheexporting Member concerned afterreceipt ofproperly documented application and
before proceeding toinitiate aninvestigation. Thisprovision isenforced, ifatall,inaself-defeating
manner inpractice. Thisissobecause theauthorities inform thediplomatic representative ofthe
exporting Member adayorsoprior totheinitiation ofinvestigation.
Itisfeltthattheideabehind thisprovision istwo-fold: firstly, itwould enable theGovernment
toalerttheexporters sothattheyareprepared torespond toquestionnaires assoonastheinvestigation
isinitiated. Advance warning ishelpful alsobecause ofthetime-bound nature ofinvestigation and
thefactthatonlymarginal extensions aregranted oncetheinvestigation isinitiated. Secondly, this
provision would enable effective utilization ofthepossibilities ofconsultation available inArticle 17,
andinparticular fordeveloping countries, inArticle 15.Foreffective andbeneficial enforcement
ofthisprovision aminimum timeprior tothedateofinitiation maybefixed fornotification tothe
Government oftheexporting Member.
Ontheother hand, therecould beadministrative problems duetodomestic legislation ofsome
oftheMembers whohaveprovided fixed periods (25days, 45daysetc.)forinitiation ofinvestigation
afterareceipt ofcomplaint. Theneedforinvestigating authorities inthese Members togetadequate
timetosatisfy themselves oftherequirement ofArticle 5before initiation alsoneeds tobekeptinmind.
Suggestions could beinvited intheAdHocGroup forfixing aperiod prior toinitiation of
investigation fornotification totheGovernment oftheexporting Member. Onesuggestion could be
togiveapriornotice ofseven daysaslackoflatest/effective telecommunication facilities could render
aperiod oflessthanseven daysasaninadequate notice fordeveloping countries.
III. DISCLOSURE MEETING -ESSENTIAL FACTS
Article 6.9provides thattheauthority shallinform allinterested parties oftheessential facts
under consideration which formthebasisforthedecision toapply definitive measures. Thisdisclosure
isrequired totakeplace insufficient timefortheparties todefend theirinterest. Assoonasapublic
hearing isheldandtheinterested parties havereduced theirviewpoints inwriting, theauthorities have
todecide thefactsonwhich theyaregoing tobasetheirfinaldecision andthenholdadisclosure meeting.
Thewording ofArticle 6.9shows thattheparties candefend theirinterest eveninsuchadisclosure
meeting. Thisisanimportant requirement andmust bestrictly enforced.
SuggestionsmaybeinvitedtotheAdHocGroupformeansofsuchanenforcement.Suggestions
mayalsobeinvited forelaboration oftheterm"essential facts" inArticle 6.9.Theissues could be:
- actual basis/calculations ofdumping, injury andcausal link;
- thesuggestion ofthestanding asperArticle 5.4;
- thebasis foradoption fornormal value from oneofthealternatives inArticle 2.2.G/ADP/AHG/W/1
Page3
IV. STANDING
Article 5.4oftheAnti-Dumping Agreement stipulates thataninvestigation shallnotinitiate ...
unless theapplication ismade byandonbehalf ofthedomestic industry. Although thereisnoprovision
fordisclosure ofthedetermination ofstanding inArticle 5,Article 12.1.1 requires thatthePublic Notice
oftheinitiation ofinvestigation shallcontain ...adequate information on,interalia,asummary of
thefactors onwhich theallegation ofinjury isbased. Theadequacy ofthisinformation would, perhaps,
bemeasured onallissues offactsandlawconsidered material. Standing iscertainly material for
determining injury.
TherehavebeeninstanceswherethePublicNoticeofaffirmativepreliminary/finaldetermination
donotgiveanydetails ofstanding. Evenconsultations havenotattimes ledtosatisfactory information
onthedetermination ofstanding. Lack ofproper determination ofstanding isnotonlyagainst the
spirit oftheAgreement butmayalsobeharmful forhonest competition inthecountry ofinvestigation
aswellasfortheinvestigated exporters. There appears tobeaneedforelaboration ofstanding either
atthestageofthePublic Notice oftheinitiation ofinvestigation oratatimepriortothepreliminary/final
standing. Suggestions maybeinvited totheAdHocGroup fortheadequacy andtiming ofdisclosure
ofstanding determination.
V. SPECIAL SITUATION OFDEVELOPING COUNTRY MEMBERS
Article 15states thatMembers recognize thatspecial regard mustbegiven bydeveloped country
Members tothespecial situation ofthedeveloping country Members when considering theapplication
ofanti-dumping measures under thisAgreement. Itfurther states thatconstructive remedies shallbe
exploredbeforeapplyinganti-dumpingdutieswheretheywouldaffecttheessentialinterestsofdeveloping
country Members.
Itisnotknown whether anti-dumping lawofanyMember contains anyprovisions forthe
enforcement ofthisArticle. Although theArticle mandates exploration ofconstructive remedies, no
special dispensation seems tohavebeenprovided inthelawsofthedeveloped country Members.
Itisunderstandable thatthere aredifficulties inviewofthefactthatsuchremedies haveto
beprovided forbythisAgreement. However, theAdHocGroup could discuss suchpossibilities within
thescope oftheprovisions oftheAgreement. Forthis,elaboration oftheterms "constructive" and
"essential interests" needtobediscussed intheGroup. Onepossibility isgiving developing country
MemberssufficientopportunityunderArticle17.2forconsultationswhichcouldleadtotheinvestigating
Member andtheaffected developing country Member coming toconstructive solutions which obviate
theneedforimposition ofanti-dumping duties. Possibilities ofdeveloping country Members taking
trade policy measures toaddress possible dumping could beoneway. Extending thetimeperiod of
consultations toenable developing country Members totakeintoconfidence theconcerned domestic
industry exporting theproduct forpossible solutions canalsobeexplored.