./.  WORLD TRADE  
ORGANIZATION  G/ADP/Q1/CHN/42 
G/SCM/Q1/CHN/42 19 April 2004 
 
(04-1732) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Replies to Follow-Up Questions from the UNITED STATES
1 
Regarding the Notification of CHINA2 
   The following communication, received on 16 April 2004, is being circulated at the request of 
the Delegation of China. 
 
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QA. China states that an application of an importer seeking redress in a dispute over 
classification of imported merchandise and/or an error in the amount of duty collected by 
Chinese Customs should be filed to the “competent  administrative organ for reconsideration”.  
In a situation as described above, what agency would be considered the most appropriate "competent administrative organ"?  
 Reply
   
  In accordance with the Law on Administrative Revi ew of the People’s Republic of China, the 
“competent administrative organ” normally refers to the administrative organ at the next level up of 
the administrative organ that takes the sp ecific administrative action in question. 
 QB. Please explain the basis for automatically requiring parties to report data on sales to 
third countries even in cases where China has pr eviously determined that the conditions of 
Article 2.2 for use of such data did not apply.   
 
Reply
 
 
 The six months period before refund applicati on and the period for original investigation are 
not the same period. That the price of export to a th ird country is not used as the basis of normal value 
determination in the original investigation will no t affect the determination of normal value in the 
refund application. For cases of refund application, due to the changes of  market situation, there is the 
possibility of using the price of export to a third country in determining the normal value.  
                                                      
1 G/ADP/Q1/CHN/36-G/SCM/Q1/CHN/36. 
2 These questions relate to regulations notified by China in G/ADP/N/1/CHN/2 + Suppl.1 
(11 September 2002).  The original questions were posed by the United States in G/ADP/Q1/CHN/14- 
G/SCM/Q1/CHN/14 (11 April 2003).  In additional questions, the United States noted that its original questions 
numbered 22-38 had not been answered in G/ADP/Q1/CHN/24- G/ADP/Q1/CHN/24 (12 September 2003).  China replied to these questions in G/ADP/Q1/CHN/33-G/ADP/Q1/CHN/33 (24 October 2003), and those 
replies are referred to in these follow-up questions. G/ADP/Q1/CHN/42 
G/SCM/Q1/CHN/42 Page 2 
 
 
  
QC. Could China please clarify whether the term “actual export” means goods that have 
arrived in China?  Will China conduct a new shipper review on the basis of a sale to China where the merchandise has been exported, but has not yet entered the customs territory of 
China?  
Reply
 
  “Actual export” means that the exported goods have actually arrived in China.  For new 
shipper review, there must have been goods in questio n that have already entered the customs territory 
of China.  
QD. Could China please define what would constitute “a reasonable period of time”? 
 Reply
 
  “A reasonable period of time” in Article 48 means one year after anti-dumping duty takes 
effect.   
QE. If MOFCOM does not conduct an on-site veri fication or otherwise verify some of the 
respondents because of its own resource restraints, does this mean it will not use bona fide data 
submitted by those respondents?  If so, what information will be used to calculate dumping 
margins for those respondents?   In cases involving resource restraints, how will MOFCOM 
select which respondents will be verified? 
 Reply
 
  MOFCOM, in principle, will conduct an on-s ite verification on each cooperating respondent. 
In practice, MOFCOM will choose the responding companies for on-site verification in light of the specific circumstances of each cas e. In special circumstances where on-site verification is not 
possible, MOFCOM may resort to other ways to ve rify the data and information submitted and will 
admit such data and information if they are found to be creditable. 
 
QF. Do Chinese Customs Regulations permit th e posting of bonds, and if so, under what 
circumstances?  Additionally, when will these bonding requirements be notified?    
Reply
 
 
 China Customs Regulation allow for a bond to be posted as provisional anti-dumping 
measure. According to Article 29 of the Anti-Du mping Regulations of the People’s Republic of 
China, the posting of bond is decided by the Minist ry of Commerce. China Customs will inform the 
interested parties and implement the decision. 
 
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