RESTRICTED
WORLD TRADE G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
ORGANIZATION 27May1997
(97-2214)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofSINGAPORE1toQuestions posed byHONG KONG2,CANADA3,
theUNITED STATES4,TURKEY5andKOREA6
Thefollowingcommunication,dated5May1997,hasbeenreceivedfromthePermanentMission
ofSingapore.
_______________
CONTENTS
Page
1. Introductory remarks made bySingapore .............................2
2. Replies toquestions posed byHong Kong .............................3
3. Replies toquestions posed byCanada ...............................6
4. Replies tofollow-up questions posed byCanada .........................9
5. Replies toquestions posed bytheUS...............................10
6. Replies toquestions posed byTurkey ...............................15
7. Replies toquestions posed byKorea ................................18
1G/ADP/N/1/SGP/2-G/SCM/N/1/SGP/2.
2G/ADP/Q1/SGP/5-G/SCM/Q1/SGP/5,3G/ADP/Q1/SGP/2-G/SCM/Q1/SGP/2+G/ADP/Q1/SGP/6-
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6G/ADP/Q1/SGP/7-G/SCM/Q1/SGP/7.G/ADP/Q1/SGP/8
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REVIEW OFTHE NOTIFICATION OFSINGAPORE 'SCOUNTERVAILING AND
ANTI-DUMPING LAWS BYTHE COMMITTEE ONANTI-DUMPING PRACTICE
AND SUBSIDIES AND COUNTERVAILING MEASURES
Introductory remarks
Thelawonanti-dumping andcountervailing measures inSingapore canbefound inthe
Countervailing andAnti-Dumping Duties Act1996 andintheCountervailing andAnti-Dumping
Regulations 1997. TheActhasbeennotified andcirculated inWTO document G/ADP/N/1/SGP/2.
Thepresent ActandRegulations bring Singapore 'slawandpractice uptodatewiththe
Agreement ontheimplementation ofArticle VIoftheGeneral Agreement onTariffs andTrade 1994
andtheAgreement onSubsidies andCountervailing Measures. TheActandtheRegulations arein
fullconformity withtheWTO Agreements. AstheActcontains themain framework ofthelawon
countervailing andanti-dumping measures, itshould bereadtogether withtheRegulations.
Perhaps Icould goontoelaborate onthestructure oftheAct. There arefiveParts tothe
Act,namely:
PartI
ThisPartlargely defines various words orphrases usedintheAct,forinstance, "domestic
industry", "dumping margin", "exporting country", "interested party", "likegoods", "subject goods",
"subsidy".
PartII
ThisPartdeals withcountervailing duties -i.e.when countervailing duties maybeimposed,
initiation ofacountervailing dutyinvestigation andtheinvestigation itself, provisions forconsultations,
preliminary andfinaldeterminations andmeasures, termination andsuspension ofinvestigations and
circumstances forreview.
PartIII
ThisPartdeals withanti-dumping duties along thesamestructure asPartIIwiththenecessary
changes andprovisions which apply onlyforanti-dumping actions.
PartIV
ThisPartdeals withtheadministrative provisions oftheAct,e.g.delegation ofduties, the
establishment ofanAnti-Dumping Tribunal, theapplication oftheCustoms Actasfarasduties are
concerned.
PartV
ThisPartdealswithgeneral provisions suchastheprocedure forcurrency conversions notices
tointerested parties andmeeting ofinterested parties, submission andtreatment ofconfidential
information, publication ofnotices intheGovernment Gazette andmaking ofregulations bytheMinister
under theAct.
Apart from theparent Act,details onmethodology, procedure ortimelimits which havenot
beenprescribed intheActarefleshed outintheaccompanying Countervailing andAnti-Dumping Duties
Regulations 1997.G/ADP/Q1/SGP/8
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REPLIES TOQUESTIONS POSED BYHONG KONG
Domestic Legal Status oftheA-DAgreement
1. Singapore ’snotification contains theCountervailing andAnti-Dumping Duties Act1996
enacted on1November 1996.
Question
What isthelegal status oftheWTO A-DAgreement (theAgreement) intheSingapore
legalsystem? Does ithavetheforce oflaw? Areofficials required, legally orotherwise, toabide
bytheprovisions oftheAgreement intheconduct ofA-Dproceedings? Ifthedomestic legislation
isinconflict withtheAgreement, which willtakeprecedence?
Reply
TheWTO Agreements donotautomatically haveforce oflawinSingapore. Incases where
domestic legislation isnecessary, Singapore would enact thenecessary legislation toimplement its
obligations under theWTO Agreements.
Where theStateimplements international agreements ingoodfaith, inconsistency between the
internationalagreementsandthedomesticlegislationshouldnotarise.If,intheory,itdoesthendomestic
legislation willprevail. Insome cases where thedomestic legislation issilent, thismaybebecause
thematter isdealtwithbyinterpretation ofthelegislative text,thecommon laworadministrative action.
Interpretation ofthedomestic lawisinthepurview ofthecourts.
Implementation ofPanel Reports
2. What isSingapore ’spolicy andlawfortheimplementation ofWTO Panel Reports?
Reply
Singapore would implement therecommendations oftheWTO Panel Reports inaccordance
withArticle 21oftheWTO Understanding onRules andProcedures Governing theSettlement of
Disputes.
Determination tobemade inthepublic interest
3. TheActprovides theMinister withtheauthority tomake adetermination ofpublic interest
atvarious stages ofA-Dproceedings. Some examples areasfollows:
- initiation ofinvestigation (Art. 19(3)(b))
- termination ofinvestigation (Art. 24(1)(b))
- suspension ofinvestigation (Art. 25(2)(c))
- review byMinister (Art. 26(1))
Question
Howwould theSingapore authorities make adetermination ofpublic interest? What could
betherelevant considerations?G/ADP/Q1/SGP/8
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Reply
Public interest depends verymuch onthefactsandcircumstances ofeachcase. Generally,
public interest covers theinterest ofthepublic atlargeandincludes, where appropriate under thefacts
andcircumstances ofaparticular case,theinterests ofvarious interested parties, theconsumers, other
industry groups orsectors oftheeconomy upon whom theanti-dumping orcountervailing measures
mayhaveanimpact.
Other practices discovered during investigation orreview
4. Article 38(1) oftheActprovides thattheMinister may, ifthere issufficient time, investigate
practices which appear tobedumping butwhich were notincluded inthepetition iftheMinister
discovers those practices inthecourse ofanA-Dinvestigation orreview.
Questions
Would thepractices referred toinArticle 38(1) involve thesame product from thesame
country inrespect oftheanti-dumping investigation orreview under way? Ifnot,would thenew
investigation beconsidered asself-initiated bytheauthorities within themeaning ofArticle 5.6
oftheA-DAgreement?
Reply
Section 38(1) permits theMinister toinclude within thescope ofananti-dumping investigation
"practices which appear tobedumping butwhich were notincluded inthematters alleged inthe
petition ...". Inorder tobeincluded within thescope oftheexisting investigation, these practices
mustinvolve "subject goods". Thismeans thatthe"practices which appear tobedumping" mustrelate
tothe"goods imported, orsoldforimportation, intoSingapore thatarethesubject of...[the]anti-
dumping dutyinvestigation orreview ...". IftheMinister elects toinclude these practices within the
existing legislation, there would benoneedtoinitiate anewinvestigation under section 17(6) ofthe
Actbecause thegoods arealready subject totheinvestigation orreview.
Power tomake Regulations
5. Article 46enables theMinister tomake regulations fortheAct.
Question
Have anyRegulations been made under Article 46? Ifyes,would theybenotified in
accordance withArticle 18.5oftheAgreement?
Reply
Yes,theCountervailing andAnti-Dumping Duties Regulations 1997 havebeenmade under
section 46oftheAct. These havebeencirculated totheWTO.
KeyIssues intheWTO A-DAgreement found silent intheSingapore A-Dlegislation
6. TheWTO A-DAgreement contains many improvements overtheTokyo Round A-DCode.
Weexpect WTO members would unequivocally reflect these improvements intheir legislation.
Although most ofthem arereflected inSingapore A-Dlegislation, specific statutory provisionsG/ADP/Q1/SGP/8
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forsome ofthem appears nottobefound ortheprovisions maynotbeadequate. Some examples
areasfollows:
- cumulative assessment ofinjury (Article 3.3)
- factors fordetermination ofathreat ofmaterial injury (Article 3.7)
- on-site verification (Article 6.6,6.7andAnnex I)
- sampling techniques (Article 6.10)
- industrial users andconsumer organisations toprovide information (Article 6.12)
- refund procedures (Article 9.3.2)
- dutyforexporters andproducers notselected insampling (Article 9.4)
- duration ofreview investigations (Article 11.4)
- procedures regarding useofbestinformation available (Annex II)
Questions
(a) Arethere anyspecific domestic provisions reflecting theabove Agreement
provisions? Ifnot,howwillSingapore ensure compliance withthese Agreement
provisions?
(b) WillSingapore contemplate further legislative steps toensure theconformity of
itslegislation andadministrative procedures withtheprovisions oftheAgreement,
inaccordance withArticle 18.4?
Reply
(a) Yes,there arespecific provisions reflecting theabove Agreement provisions intheafore-
mentioned Regulations. fortheexamples mentioned byHong Kong, thespecific regulations
areasfollows:
- cumulativeassessmentofinjury-Regulation19stipulatestheconditionswhentheeffects
ofsubsidized imports canbecumulated andRegulation 20stipulates theconditions
when theeffects ofdumped imports canbecumulated. Theconditions inRegulation 20
areconsistent withArticle 3.3oftheA-DAgreement.
- factors fordetermination ofathreat ofmaterial injury -Regulation 17(2) liststhefactors
upon which theMinister maytakeintoaccount inhisdetermination whether athreat
ofmaterial injury exists; forinstance thereisasignificant rateofincrease ofsubsidized
ordumped imports intothedomestic market, there issufficient freely disposable or
animminentsubstantialincreaseincapacityoftheexporterorthatthegoodsareentering
atprices thatwillhaveasignificant depressing orsuppressing effect ondomestic prices
andwould likely increase demand forfurther imported goods. Regulation 17(1)
stipulates thatthedetermination mustbebased onfactandnotmerely onallegation,
conjecture orremote possibility, andthatthethreat must beclearly foreseen and
imminent. Thefactors justoutlined areinaccordance withArticle 3.7oftheA-D
Agreement.
- on-site verification -Regulation 43covers theprocedure foron-site verifications.
Regulation 43(2) clearly implements theapplication ofAnnex ItotheAgreement on
Implementation ofArticle VIoftheGeneral Agreement onTariffs andTrade 1994
toSingapore 'sdomestic law.G/ADP/Q1/SGP/8
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- industrial users andconsumer organizations toprovide information -thisisprovided
forunder Regulation 42,which isconsistent withArticle 6.12oftheA-DAgreement.
- sampling techniques -these arecovered under Regulation 33,which isconsistent with
Article 6.10oftheA-DAgreement.
- refund procedures -these arecovered under Regulation 40which isalsoinlinewith
theprocedures contained inArticle 9.3.2 oftheA-DCode.
- dutyforexporters andproducers notselected insampling -Regulation 31(8) stipulates
thattheanti-dumping dutyforexporters orproducers notselected insampling shall
notexceed theweighted average margin ofdumping established withrespect tothe
exporters orproducers individually examined. ThisisinlinewithArticle 9.4ofthe
A-DCode.
- duration ofreview investigations -Regulation 36(2) states thatreviews should normally
becompleted within 180daysfrom thedateofpublication ofthenotice ofinitiation
ofthereview andinnocaseshallexceed oneyearfrom thatdate. Regulation 37(2)
provides thatforexpedited reviews ofcountervailing duties fornewexporters, the
review should becompleted within 6months. Regulation 38(2) provides thatfor
expedited reviews ofanti-dumping duties fornewexporters, thereview should be
completed within ninemonths. Regulation 39(4) provides that"sunset" reviews should
normally becompleted within 180daysandinnocasemore thanoneyear.
- procedures regarding useofbestinformation available -These procedures arelaid
down inRegulation 44which follows theprocedures stipulated inAnnex IItotheA-D
Code.
(b) Singapore hasalready taken steps toensure thatitslawsandpractices implement its
international obligations -byenacting theCountervailing andAnti-Dumping Duties
Act1996 andaccompanying Regulations.
REPLIES TOQUESTIONS POSED BYCANADA
Q.1. Under TheCountervailing andAnti-Dumping Duties Act1996, various aspects of
Singapore 'santi-dumping/countervailing dutyregime aretobeprescribed byregulation, e.g.:
- subsection 2(5)-theamount ofcountervailable subsidy;
- subsections 4(2)and19(2) -contents ofapetition;
- subsections 7(1)and21(1) -time period fortheconduct ofapreliminary
determination;
- paragraph 10(3)(a) -deminimis amount ofsubsidy; and
- I.subsections 12(4) and26(4) -period fortheconduct ofreviews.
When willthese regulations beissued andnotified?
Reply
These regulations areknown astheCountervailing andAnti-Dumping Regulations 1997.
Inrelation totheaspects raised byCanada, theyareaddressed intheRegulations asfollows:G/ADP/Q1/SGP/8
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- amount ofcountervailable subsidy -Thecalculation oftheamount ofcountervailable
subsidy isprescribed inRegulation 22.Theamount iscalculated from aparticular
programme received bytheenterprise industry orexporter astobeprovided inasingle
yearoranannual basis fortwoormore years, whichever isappropriate. The
countervailable subsidy willbeallocated tothose goods withwhich itisassociated.
Certain deductions maybemade forapplication feesordeposits paidtoqualify for
orreceive thecountervailable subsidy aswellasforexport taxes orother charges
specifically intended tooffset thecountervailable subsidy received.
- contents ofapetition -these areprescribed inRegulation 3.Acountervailing oranti-
dumping petition should contain thefollowing:
(a) thepetitioner 'sname andaddress;
(b) thevolume andvalue ofthedomestic production ofthelikegoods;
(c) theidentity ofthedomestic industry onbehalf ofwhich thepetition issubmitted;
(d) complete description ofthegoods thatdefines therequested scope oftheinvestigation;
(e) name ofthecountry inwhich thegoods areproduced andthatoftheintermediate
country ofexport, ifany;
(f) name oftheparty alleged tobedumping orreceiving thecountervailable subsidy;
(g) factual information, particularly documentary evidence oftheauthority providing the
countervailable subsidy andthemanner inwhich thecountervailable subsidy isprovided
andanestimate ofthevalue ofthecountervailable subsidy. Inthecaseofananti-
dumping petition, information ondomestic market prices, export prices orconstructed
value ofthegoods;
(h) volumeandvalueofthegoodsimportedintoSingaporeduringthemostrecentthree-year
orother more representative period;
(i) name andaddress ofeachknown importer;
(j) information oninjury caused bythegoods andtheeffect ofthegoods ondomestic
prices andthedomestic industry.
Therequirements ofRegulation 3areinaccordance withArticle 5.2oftheA-DAgreement
andArticle 11.2oftheSCM Agreement.
- Time period fortheconduct ofapreliminary determination :Thetimelimit fora
preliminary determination under sections 7and21oftheActisprescribed in
Regulation 10,i.e.itmust bemade within 90daysfrom thedateofpublication of
thenotice ofinitiation ofinvestigation.G/ADP/Q1/SGP/8
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- Deminimis amount ofsubsidy :Thedeminimis amount ofcountervailable subsidy
under section 10(3)(a) oftheActisprescribed inRegulation 24.Theamount is
considered deminimis asfollows:
(a) ifthecountervailable subsidy when expressed asanadvalorem percentage
islessthan1%;
(b) where thecountry ofexport isadeveloping country, ifthecountervailable
subsidy when expressed asanadvalorem percentage isnotmore than2%;
or
(c) where thecountry ofexport isadeveloping country thathaseliminated export
subsidies before 1January 2003oramember country referred toinAnnex VII
oftheSCM Agreement, ifthecountervailable subsidy when expressed asan
advalorem percentage isnotmore than3%.
These areinaccordance withArticle 11.9oftheSCM Agreement.
Q.2. Isthereference to"domestic industry" inparagraph 4(8)(b) oftheAct,(i.e., the25%
industrysupportrequirement),basedonlyonparagraph(a)ofthedefinitionof"domesticindustry",
(i.e., domestic producers asawhole), orcanitalsobebased onparagraph (b)ofthedefinition,
(i.e., domestic producers whose collective output oflikegoods constitutes amajor proportion
oftotaldomestic production)?
Reply
Thereferenceto"domesticindustry"insection4(8)(b)oftheActcanrefertoeitherparagraph(a)
or(b)ofthedefinition of"domestic industry". ThisisinlinewithArticle 5.4oftheA-DCode and
Article 11.4oftheSCM Agreement.
Q.3. Subsection 4(8)oftheActsaysthatitoperates notwithstanding anyother provision in
thesection. IstheMinister therefore required todetermine thattheindustry support thresholds
inthatsubsection aresatisfied before self-initiating aninvestigation under subsection 4(6)?
Reply
Yes,theMinister isrequired todetermine thattheindustry support thresholds insection 4(8)
aresatisfied before self-initiating aninvestigation under section 4(6).
Q.4. Subsections7(2)and21(2)oftheActstatethattheMinister"may"terminateaninvestigation
iftheMinister makes anegative preliminary determination. Does theMinister have discretion
tocontinue aninvestigation insuchcases?
Reply
Yes,theMinister mayterminate theinvestigation ifheissatisfied thatthere isinsufficient
evidence ofdumping/subsidization orofinjury tojustify proceeding withtheinvestigation. Inother
words, hecancontinue ifthere issufficient evidence ofdumping/subsidization orofinjury tojustify
proceeding withtheinvestigation.G/ADP/Q1/SGP/8
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Q.5. Areboththedumping/subsidy investigation andinjury/causation inquiry conducted by
thesame authority orarethese responsibilities bifurcated?
Reply
Bothdumping/subsidy investigation andinjury/causation enquiry areconducted bythesame
authority, i.e.theMinister forTrade andIndustry.
Q.6. TheActmakes reference to"public interest" inseveral contexts, e.g.:
- paragraphs 4(3)(b) and19(3)(b) -whether toinitiate aninvestigation;
- subsections 9(4)and23(4) -whether toimpose countervailing/anti-dumping duties
after anaffirmative final determination;
- paragraphs 11(2)(b) and25(2)(c) -whether toaccept anundertaking; and
- subsections 12(1) and26(1) -whether toconduct certain reviews.
What public interest factors might theMinister consider relevant ineachoftheabove
cases, (particularly inrespect ofwhether ornottoimpose countervailing/anti-dumping duties
after anaffirmative final determination)?
Reply
Please seeanswer toHong Kong'squestion 3.
Q.7. Regardingthetreatmentofsalesbelowcostundersubsection15(4)oftheAct,istheMinister
required toapply footnotes 4and5totheWTO Anti-Dumping Agreement indetermining whether
thesalesinquestion weremade "within anextended period oftime" and"insubstantial quantities"?
Reply
Yes,theMinister isrequired todetermine thatsalesaremade "within anextended period of
time" and"insubstantial quantities" under section 15(4), thereby applying footnotes 4and5of
Article 2.2.1 oftheA-DCode. Regulation 30(a) oftheRegulations statethattheextended period
oftimeshallnormally beoneyearbutinnocaselessthansixmonths andRegulation 30(b) provide
thatsalesperunitcostsaremade insubstantial quantities where theMinister establishes thattheweighted
average selling price ofthetransactions under consideration isbelow theweighted average perunit
costs, orthatthevolume ofsalesperunitcosts represents notlessthan20%ofthevolume soldin
transactions under consideration.
REPLIES TOFOLLOW-UP QUESTIONS POSED BYCANADA
1. Regarding subsection 2(a), doestheterm “public body”encompass aprivate body, as
provided intheArticle 1oftheWTO Subsidies Agreement, thatisentrusted ordirected by
government tocarry outoneormore ofthefunctions setoutinSubsection 2(1)(2)(a)(i-v) ofthe
law?
Reply
Although Article 1oftheWTO Subsidies Agreement covers aprivate body thatisentrusted
ordirected bythegovernment tocarry outoneormore ofthefunctions illustrated inparagraphs (i)
to(iii)ofArticle 1,where thegovernment makes payments toafunding mechanism, suchactions willG/ADP/Q1/SGP/8
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already becovered under section 2(2)(a)(i) -(v)oftheAct. Singapore feelsthatwhataprivate body
doeswithitsownfunds doesnotmeetthefundamental requirement ofagovernment action.
2. Subsection 2(3)(a) indicates thatasubsidy shall becountervailable ifthereceipt ofthe
benefit isfound tobespecific inlaworinfact. What factors willbeconsidered indetermining
whether asubsidy isspecific inlaworinfact? Willfactors beelaborated upon inregulations
toTheCountervailing andAnti-Dumping Duties Act1996?
Reply
Thefactors tobeconsidered indetermining whether asubsidy isspecific inlaworinfactare
elaborated upon inRegulation 21oftheCountervailing andAnti-Dumping Duties Regulations 1997.
Inparticular, Regulation 21(1) states thatthefollowing principles apply:
(a) thesubsidy isspecific where thegranting authority, orthelegislation pursuant towhich
thegrantingauthorityoperates,explicitlylimitsaccesstoasubsidytocertainenterprises;
(b) where thegranting authority, orthelegislation pursuant towhich thegranting authority
operates, establishes objective criteria orconditions governing theeligibility for,and
theamount of,asubsidy, specificity shallnotexist, provided thattheeligibility is
automatic andsuchcriteria andconditions arestrictly adhered toandareclearly spelt
outinwritten laworother official document soastobecapable ofverification; and
(c) if,notwithstanding anyappearance ofnon-specificity resulting from theapplication
oftheprinciples laiddown insubparagraphs (a)and(b),there arereasons tobelieve
thatthesubsidy mayinfactbespecific, other factors maybeconsidered.
These factors areinaccordance withArticle 2oftheSCM Agreement.
3. Subsections 2(4)(a) and(b)refer toconditions under which theMinister would determine
subsidies nottobecountervailable, including notification ofsubsidies under Article 8.3ofthe
WTO Subsidies Agreement. InlightofFootnote 35oftheWTO Subsidies Agreement, howwould
theMinister treat subsidies thatwere notnotified pursuant toArticle 8.3oftheWTO Subsidies
Agreement, yetsuch subsidies were otherwise found toconform tothestandards setoutin
Article 8.2oftheSubsidies Agreement?
Reply
Section 2(4)(a) oftheActstates thatagovernment action which satisfies theconditions in
Article 8.2oftheWTO Subsidies Agreement shallnotbecountervailable.
REPLIES TOQUESTIONS POSED BYTHE UNITED STATES
Q.1. Isitcorrect toassume thatwherever theNotification issilent onanissue covered bythe
Agreements, theAgreements willprevail?
Reply
Please seeanswer toHong Kong'sQ.1.G/ADP/Q1/SGP/8
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Q.2. Please clarify whether theamount oftheantidumping duty willbedetermined ona
retrospective oronaprospective basis.
Reply
Theamount ofanti-dumping dutywillbedetermined onaprospective basis.
Q.3. Willcomparisons bemade ofsales which areatdifferent levels oftrade and,ifso,will
anadjustment begranted forthese different levels? Please explain thebasis forthisdetermination
andthemethod tobeusedforthisadjustment.
Reply
Regulation 32(1)(g) oftheCountervailing andAnti-Dumping Regulations 1997 provides for
adjustments tobemade "[w]here thelevels oftrade aredifferent andtheMinister issatisfied thatthe
amount ofanyprice difference iswholly orpartly duetosuchdifference". Thisregulation isin
accordance withArticle 2.4oftheA-DAgreement.
Q.4. Theterm "prescribed manner" hasbeenusedinseveral parts ofthelawinvolving non-
market economy investigations. Ifthere isawritten document which describes thenon-market
economy methodology, doesSingapore plantonotify thatdocument? Ifnomethodology hasof
yetbeen developed, please indicate.
Reply
TheCountervailing andAnti-Dumping Regulations 1997 describes thenon-market economy
methodology among other things. Inparticular, thenon-market economy methodology isdescribed
inRegulations 34(forcountervailing duty) and35(anti-dumping) oftheafore-mentioned Regulations.
Under Regulation 34,nocountervailing dutywillbeapplied tosubject goods fromanon-market
economy totheextent thatisimpracticable todetermine acountervailing dutyrateinaccordance with
themethods prescribed intheActorRegulations.
Thedumping margin forsubject goods fromanon-market economy maybebased, totheextent
thatitisimpracticable todetermine themargin inaccordance withthemethods prescribed intheAct
orRegulations, onother reasonable methods suchasprices oflikegoods soldintheordinary course
oftradeinanappropriate surrogate market-economy country, constructed value orprices oflikegoods
soldinSingapore. These methods areprescribed inRegulation 35andisinaccordance withArticle 2.2
oftheA-DAgreement.
Q.5. Does theGovernment ofSingapore intend toverify information obtained during the
investigative process, inaccordance withArticle 6.7oftheWTO Antidumping Agreement (A-D
Agreement)?
Where necessary, theMinister mayverify information obtained during theinvestigative process.
Regulation 43forverification inaccordance withArticle 6.7oftheWTO A-DAgreement. The
interested foreign government willbenotified oftheupcoming verification. Verification mayalso
beconfined toasample because ofthelargenumber ofparties involved. Regulation 43(2) specifically
applies theprocedure inAnnex IoftheA-DAgreement toSingapore law.G/ADP/Q1/SGP/8
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Q.6. What arethe“prescribed percentage[s] ”foridentifying ademinimis amount of
countervailable subsidies andanegligible volume ofsubsidized imports under Article 10(3) of
theAct? Arethese consistent with Articles 11.9, 27.9and27.10 oftheWTO Agreement on
Subsidies andCountervailing Measures (SCM Agreement)?
Reply
Theprescribed percentage[s] foridentifying ademinimis amount ofcountervailable subsidies
andanegligible volume ofsubsidized imports aresetoutinRegulations 24and25oftheRegulations.
These prescribed percentage[s] areconsistent withtheSCM Agreement. Please seeanswer toCanada 's
Q.1fordetails oftheprescribed percentages.
Q.7. Article 15(6)(a) oftheNotification indicates thatsales inthedomestic market made at
prices which arenotlessthanthecostofproduction willbeusedonlywhen there aresufficient
quantities ofsuchsales. Please indicate thequantitative level tobeapplied forthissufficiency
test.
Reply
Thequantitative level isnotspecified intheActorRegulations. Singapore willapply a
quantitative levelthatisconsistent withtheWTO Agreement, inthiscasebeing 5%ormore ofthe
salesoftheproduct under consideration totheimporting Member.
Q.8. How doesSingapore implement theprovisions ofArticle 3.2oftheA-DAgreement and
Article 15.2oftheSCM agreement, which require consideration ofsignificant price undercutting,
price depression andsuppression bythesubject imports inidentifying material injury?
Reply
Theprovisions ofArticle 3.2oftheA-DAgreement andArticle 15.2oftheSCM Agreement
areimplemented through Regulation 16oftheRegulations. Specifically, Regulation 16(1) stipulates
thatthere must beconsideration ofsignificant price undercutting, price depression andsuppression
bythesubject goods inthedetermination ofmaterial injury.
Q.9. Inidentifying material injury, Article 3.2oftheA-DAgreement andArticle 15.2ofthe
SCM Agreement require anevaluation ofwhether there hasbeenasignificant increase inunfairly
traded imports, either inabsolute orrelative terms. How does Singapore implement this
requirement?
Reply
Please seeanswer toQ.8.
Q.10. There doesnotappear tobeanyrequirement intheActforconsideration ofthemagnitude
ofthedumping margin inassessing material injury. How isthisconsistent withArticle 3.4of
theA-DAgreement?G/ADP/Q1/SGP/8
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Reply
Therequirements inArticle 3.4oftheA-DAgreement aresetoutinRegulation 15(3)(c) of
theRegulations which stipulates thatoneofthefactors toconsider is"magnitude ofthemargin of
dumping".
Q.11. Thenotification doesnotappear toimplement therequirement intheSCM Agreement,
when determining whether subsidized imports poseathreat ofmaterial injury, thatthenature
ofthesubsidies beconsidered. How isthisconsistent withArticle 15.7oftheSCM Agreement?
Reply
Therequirement isimplemented inRegulation 17.
Specifically,Regulation17(2)(e)stipulatesthatoneofthefactorstoconsiderinthedetermination
ofthreat ofmaterial injury is"thenature ofthecountervailable subsidy(s) inquestion andthetrade
effects likely toarisetherefrom".
Q.12. How doestheActimplement therequirements ofArticle 3.7oftheA-DAgreement and
Article 15.7oftheSCM Agreement thatafinding ofathreat ofmaterial injury must be"based
onfacts andnotmerely onallegation, conjecture orremote possibility" andmust be"clearly
foreseen andimminent?"
Reply
Please seeanswer toHong Kong'sQ.6(a).
Q.13. How doestheActimplement Article 3.7(i) oftheA-DAgreement andArticle 15.7(ii) of
theSCM Agreement, which require, inidentifying athreat ofmaterial injury, consideration of
"asignificant rateofincrease" ofdumped orsubsidized imports andwhether imports areentering
atprices thathave "asignificant depressing orsuppressing effect"?
Reply
Please seeanswer toHong Kong'sQ.6(a).
Q.14. Does theActrequire examination ofwhether there is"freely disposable, oranimminent,
substantial increase in,capacity oftheexporter indicating thelikelihood ofsubstantially increased
...exports, ...taking intoaccount theavailability ofother export markets toabsorb anyadditional
exports," asrequired byArticle 3.7(ii) oftheA-DAgreement andArticle 15.7(iii) oftheSCM
Agreement indetermining athreat ofmaterial injury?
Reply
Please seeanswer toHong Kong'sQ.6(a).
Q.15. There isnoprovision intheActaddressing theissue ofthecumulative assessment ofthe
imports from more thanonecountry. Does theActcontemplate cumulation, and,ifso,under
what circumstances?
Reply
Please seeanswer toHong Kong'sQ.6.(a).G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
Page14
Q.16. Under Articles 13and27oftheAct,aninterested party hasaright ofreview bytheAnti-
Dumping Tribunal ofanyfinal determination orreview. Article 30oftheActstates thatthe
members oftheAnti-Dumping Tribunal shallbeappointed bythe“Minister, ”theirremuneration
andconditions ofappointment determined bythe“Minister, ”andtheir rules ofprocedure
established bythe“Minister. ”IstheMinister referred toinArticle 30thesame legal authority
referred toasthe“Minister ”inother Articles oftheAct? How isthisprocedure forreview of
antidumping andcountervailing dutyproceedings consistent withArticle 13oftheA-DAgreement
andArticle 23oftheSCM Agreement which require thatsuchtribunals “shall beindependent
oftheauthorities responsible forthedetermination orreview inquestion? ”
Reply
Section 30(12) states thatforthepurposes ofsection 30,the"Minister" means theMinister
forLawwhereas thelegalauthority forimplementing therestoftheActandRegulations istheMinister
forTrade andIndustry. TheTribunal isthusappointed byanauthority which isindependent ofthe
authority responsible forthedetermination orreview inquestion.
Q.17. Willallcurrency conversions bemade onthedateofthesaleoftheexported goods, except
under theconditions reflected inArticles 33(3) and33(4)? Inthisregard, willtheconversion
oftheConstructed Value bemade atthedateofsaleoftheexported goods oratthetimesuch
costs were incurred bythecompany? Please indicate themethodology forcurrency conversion
tobeusedinthecaseofsustained appreciating andsustained depreciating currencies.
Reply
Yes,allcurrency conversions willbemade onthedateofthesaleexcept fortheconditions
insections 33(4) and33(5). Sections 33oftheActimplements Article 2.4.1 oftheA-DAgreement.
Under section 33,theMinister willusetheexchange rateonthedatesofsalewhen converting currencies
except asprovided insubsections 33(3) ("forward rateofexchange") and33(5) ("sustained movement").
TheMinister, under subsection 33(4), willdisregard fluctuations intheexchange rateunless theyreflect
asustained movement.
Section33(5)fullyimplementsSingapore'sobligationsunderArticle2.4.1oftheA-DAgreement
withrespect to"sustained movements" inexchange rates. IftheMinister determines thatthere has
beena"sustained movement" intheexchange rate,hewillnotusetheexchange rateonthedateof
sale. Hewillinstead consider alternative conversions thattakeintoconsideration theobligation to
allow atleast60daysfortheexporters tohaveadjusted theirexport prices. Thiswillbedoneon
acase-by-case basis, depending onthenature, magnitude andduration ofthesustained movement in
exchange rates. Also, because Article 2.4.1 oftheA-DAgreement andsection 33(5) aredrafted in
afashion thatpermits "exporters" aperiod oftimetoadjust theirpricing, theintention istoimplement
thisprovision onlywhere there isasustained appreciation ofthecurrency.
Q.18. How doesSingapore implement therequirements ofANNEX IIoftheA-DAgreement
(Best Information Available inTerms ofparagraph 8ofArticle 6)regarding theuseoffacts
available forpreliminary and/or final determinations?
Reply
Therequirements areimplemented inRegulation 44oftheRegulations which isinaccordance
withAnnex IIoftheA-DAgreement.G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
Page15
REPLIES TOQUESTIONS POSED BYTURKEY
Q.1. What isthelegalstatus oftheWTO Agreement? Doesithavetheforce oflawinSingapore?
Incaseofaconflict withthedomestic legislation which willtakeprecedence?
Reply
Please seetheanswer toHong Kong'sQ.1.
Q.2. Article 18ofSingapore 'sActstates that(page 20)"Where thecountry oforigin ofany
subject goods isanon-market economy country, thenormal value ofthesubject goods shall be
determined intheprescribed manner".
Could Singapore clarify what isalluded toin"intheprescribed manner"?
Reply
Please seeanswer toUSQ.4.
Q.3. Article 3.7oftheA-DAgreement states that"Adetermination ofathreat ofmaterial injury
shall bebased onfacts andnotmerely onallegation, conjecture orremote possibility".
Inthiscontext, could Singapore provide information onhowitdetermines "threat of
material injury"?
Reply
Please seeanswer toHong Kong'sQ.6(a).
Q.4. Article 22(4) ofSingapore 'slegislation states that(page 22)"Provisional measures imposed
under thissection shall notexceed suchperiod asmaybeprescribed".
Could Singapore explain what isalluded toin"such period asmaybeprescribed"?
Reply
Regulation 12(2) prescribes afour-month period foracountervailing dutyinvestigation and
sixmonths or,iftheMinister decides upontherequest ofexporters representing asignificant percentage
ofthetrade involved, ninemonths, forananti-dumping dutyinvestigation. These periods arein
accordance withArticle 7.4oftheA-DAgreement andArticle 17.4oftheSCM Agreement.
Q.5. Article 12oftheA-DAgreement states that"Apublic notice oftheinitiation ofan
investigation shall contain adequate information".
Could youplease clarify howtheauthorities ensure thefulfilment ofthisrequirement?
Reply
Regulation 8stipulates thesortofinformation thathastobeinthepublic notice ofinitiation
ofaninvestigation, which isasfollows:G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
Page16
(a) name ofthecountry(s) which produces thesubject goods orthename oftheintermediate
country ofexport;
(b) description ofthesubject goods;
(c) briefdescription ofthealleged countervailable subsidy ordumping, including basis
fortheallegations;
(d) briefsummary offactors onwhich theallegations ofinjury arebased;
(e) address where information andcomments maybesubmitted;
(f) dateofinitiation ofinvestigation; and
(g) proposed timelimits fortheinvestigation.
Theprovisions ofRegulation 8fulfils therequirements ofArticle 12oftheA-DAgreement.
Q.6. Footnote 5oftheA-DAgreement isnottaken intoconsideration inSingapore 'slegislation.
Inthiscontext, would youplease explain howSingapore determines thesubstantial
quantities?
Reply
Please seetheanswer toCanada 'squestion 7.
Q.7. Would youplease explain the"statistically valid techniques" term stated inArticle 19.9
oftheAct(page 21)andprovide information onwhether theywereemployed inanyinvestigation?
Reply
Thetermisinaccordance withArticle 6.10oftheA-DCode. Techniques thataresound,
recognized andaccepted under normal statistical practice willbeemployed.
Q.8. With respect totheprovisions ofArticle 26oftheAct(page 27),could youplease provide
some information ontheinvestigation period forthereview investigations?
Reply
Section 26oftheActdescribes thecircumstances under which areview maybeinitiated.
Thetimeperiod within which areview mustbecompleted isprovided forintheRegulations.
Please seeanswer toHong Kong'sQ.6.fordetails ofeachtimeperiod.
Q.9. Arethere anytime-limits setoutfortherelease ofthesecurities andrefund oftheduties
(Article 24.5oftheAct,page 25)?
Reply
There arenotimelimits specified. However, inthespirit andobject oftheA-DAgreement,
theMinister willrefund theprovisional duties orrelease thesecurities asexpeditiously aspossible.G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
Page17
Q.10. Article 19.6oftheActstates that"...Minister mayinspecial circumstances, initiate an
anti-dumping duty investigation". Would youplease clarify whether theterm "anti-dumping
dutyinvestigation" implies thattheMinister hastheopinion inmind toimpose ananti-dumping
dutyprior totheinitiation oftheinvestigation (page 21)?
Reply
Section 19(6) oftheActgoverns thecircumstances under which aninvestigation maybeself-
initiated. provisional anti-dumping duties, ifany,willonlybeimposed uponpublication ofthenotice
ofaffirmative preliminary determination (section 22oftheAct). There willbenoimposition ofanti-
dumping dutyprior totheinitiation oftheinvestigation.
Q.11. Article 13oftheA-DAgreement states thattribunals orprocedures should beindependent
oftheauthorities responsible forthedeterminations ormeasures. Since theChairman andtwo
ofthemembers oftheAnti-Dumping Tribunal areappointed bytheMinister whoisincharge
oftheconduct ofinvestigations, would youplease clarify howtheindependence oftheTribunal
isassured within thecontext specified bytheA-DAgreement (Article 30,page 28)?
Reply
Please refertotheanswer toUSquestion 16.
Q.12. Singapore 'slegislation doesnotrefer toArticle 9.5oftheA-DAgreement wherein the
Agreement states thattheauthorities should promptly carry outreviews forthepurpose of
determining individual dumping margins forthenewcomer exporters. Would youplease clarify
ifprompt review investigations areavailable forsuchnewcomer firms intheSingapore legislation?
Reply
Yes,prompt review investigations areavailable fornewcomer firms andareprovided forin
Regulation 38oftheRegulations. Asstated inourreply toQ.8., thereview forsuchnewcomers shall
becompleted within ninemonths. Thisisalsoinaccordance withArticle 9.5oftheA-DAgreement.
Q.13. Would youplease explain theprocedure insuch cases that, inthefinal determination,
theinjury orthedumping margin determined islesser thantheundertaking (Article 25.4, page 26)?
Reply
Section 25(5) oftheActprovides fortheundertakings toremain inplacesubject totheprovisions
oftheAct. Hence, ifthefinaldetermination demonstrates thattheassumptions usedasthebasis for
theundertaking arenotcorrect, theterms oftheundertaking agreement mayberedefined tocomply
withtheprovisions oftheAct,e.g."toeliminate thedumping margin ortheinjurious effects".
Q.14. Would youplease explain thelegalpositions oftheMinister andtheTribunal andincase
ofconflict whether thedecision oftheTribunal prevails (Article 27,page 28)?
Reply
Where theTribunal doesnotaffirm theMinister 'sfinaldetermination, itwillremit thematter
backtotheMinister forreconsideration (seesection 27(3)). TheMinister thenhastoreconsider the
matter.G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
Page18
Q.15. Article 4.1(i) oftheA-DAgreement states that,"when producers arerelated totheexporters
orimporters orarethemselves importers oftheallegedly dumped product, theterm "Domestic
industry" maybeinterpreted asreferring totherestoftheproducers".
Withinthiscontext,wouldyoupleaseclarifythedefinitionof"domesticindustry",regarding
theabove-mentioned Article, considering thatsome producers haverelations withtheimporters
ortheexporters ofthedumped goods (Article 2.1,page 5)?
Reply
Thedefinition of"domestic industry" intheActexcludes, ifsodetermined bytheMinister,
domestic producers whoarerelated totheexporters orimporters, orarethemselves importers ofthe
subject goods. ThisisinlinewithArticle 4.1(i) oftheA-DAgreement.
REPLIES TOQUESTIONS POSED BYKOREA
1. Faircomparison ofnormal value andexport price
Article 17ofthenotified regulations regulate thedueallowance forfaircomparison between
theexport price andthenormal value, butthere isnospecific method concerning dueallowances
suchasadvertisements andleveloftrade, etc.
Article 2.4oftheWTO A-DAgreement stipulates that"...dueallowances shall bemade
...including differences inconditions andterms ofsale, taxation, levels oftrade, candidates,
physical characteristics, andanyother differences ...affect price comparability."
Wehopethattheterm"differences which affect price comparability" willbemore explicitly
defined, asenumerated intheWTO A-DAgreement. Does your country plantoenact anew
setoflawsthatwillbemore compatible withtheWTO A-DAgreement?
Reply
TheActandtheaccompanying Regulations arelawsenacted bySingapore which bring its
obligations fullyinlinewiththeWTO A-DAgreement. Regulation 33oftheRegulations elaborates
ontheadjustments tobemade toensure afaircomparison between thenormal value andtheexport
price ofanygoods. These adjustments include:
(a) reasonable allowances fortransport expenses e.g.freight, shipping, insurance orsimilar
expenses toensure prices arecompared atanex-factory level;
(b) reasonable allowances forbonafidedifferences intheselling conditions ofthesales
compared e.g.commissions, credit terms, guarantees, etc.;
(c) reasonable allowances fordifferences inthephysical characteristics ofgoods compared;
(d) reasonable allowances fortheamount ofanyindirect taxes orduties imposed onsales
intheexporting country butexempted orrebated upon exportation ofthegoods;
(e) reasonable allowances forselling costsincurred bytheproducer ordistributor onbehalf
ofthepurchaser;G/ADP/Q1/SGP/8
G/SCM/Q1/SGP/8
Page19
(f) where theexport priceisconstructed, reasonable allowances forcosts, including duties
andtaxes, incurred between importation andresale;
(g) calculate normal value andexport price based onthesame commercial leveloftrade
andoncomparablequantitiesofgoodsandtomakereasonableallowancefordifferences
inthelevels oftrade orwhere thequantities arenotcomparable; and
(h) anyother adjustments necessary toensure afairprice comparison.
These factors areinaccordance withArticle 2.4oftheA-DAgreement.
2. Review
Article 26(1), (2)regulates thereview bychange ofcircumstances. However, there isno
specific provision concerning theprocedures andthetimelimit ofthereview.
Article 11.4oftheWTO A-DAgreement regulates theprocedures andthetime-limit of
thereview asfollows:
"The provisions ofArticle 6regarding evidence andprocedure shall apply toanyreview
carried outunder thisArticle. Anysuchreview shall becarried outexpeditiously and
shall normally beconcluded within 12months ofthedateofinitiation ofthereview."
What isSingapore 'sposition onthismatter?
Reply
Section 26(3) oftheActstates thatiftheMinister decides toconduct areview, anotice of
theinitiation ofthereview must bepublished andinterested parties must begiven opportunities to
provide comments. Upon completion ofthereview, section 26(5) states thatthefinaldetermination
mustbepublished aswell. Therequirements ofArticle 6oftheWTO A-DAgreement areembodied
inRegulations 41-43 oftheRegulations. Therequirements inRegulations 41-43 apply bothto
investigations andreviews.
Asregards thetime-limits forreviews, please seeanswer toHong Kong'sQ.6.