WORLD TRADE  
ORGANIZATION  G/ADP/N/1/CHN/2/Suppl.3 
20 October 2004 
 (04-4447) 
Committee on Anti-Dumping Practices Original:   English 
  
 
NOTIFICATIONS OF LAWS AND REGULATIONS UNDER 
ARTICLE 18.5 OF THE AGREEMENT 
 
PEOPLE'S REPUBLIC OF CHINA 
 
Supplement
 
   The following communication, dated 18 October 2004, is being circulated at the request of the Delegation of the People's Republic of China.  
 
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  With reference to Article 18.5 of the Agre ement on Implementation of Article VI of the 
GATT 1994, the Government of China notifies the Committee on Anti-Dumping Practices of the 
departmental rules related to the Agreement as fo llowing:  Regulation of the People’s Republic of 
China on Anti-Dumping. 
 
 
 
 G/ADP/N/1/CHN/2/Suppl.3 
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 Regulations of the People’s Republic of China on Anti-Dumping 
 
(Promulgated by Decree No. 328 of the State Council of the People’s Republic of China on 
26 November 2001, and revised in accordance with  the Decision of the State Council on Amending 
the Regulations of the People’s Republic of Ch ina on Anti-Dumping promulgated on 31 March 2004) 
 
Chapter I General Provisions 
 
 Article 1   These Regulations are formulated in accordance with the relevant provisions of the 
Foreign Trade Law of the People’s Republic of Chin a for the purpose of maintaining the foreign trade 
order and fair competition. 
  Article 2   Where an import is dumped into the market of the People’s Republic of China and 
causes material injury or threat of material inju ry to an established domestic industry, or causes 
material retardation to the establishment of such an industry, an anti-dumping investigation shall be 
initiated and anti-dumping measures applied in accord ance with the provisions of these Regulations. 
 
Chapter II Dumping and Injury 
 
 Article 3   The term “dumping” means that an import is introduced, in the ordinary course of 
trade, into the market of the People’s Republic of China at an export price less than its normal value. 
 
 The Ministry of Commerce shall be responsible  for the investigation and determination of 
dumping.   Article 4   The normal value of an import shall be  determined according to the following 
methods by distinguishing among different cases: 
 (1) where there is a comparable pric e for the like product of the import in the ordinary course of 
trade in the domestic market of the exporting c ountry (region), such comparable price shall be 
the normal value; or 
(2) where there are no sales of the like product of th e import in the ordinary course of trade in the 
domestic market of the exporting country (region), or the price and the quantity of such sales do not permit a fair comparison, the normal valu e shall be the comparable price of the like 
product when exported to an appropriate third country (region) or the cost of production of 
the like product in the country (region) of or igin plus a reasonable amount for expenses and 
for profits. 
  In cases where a product is not imported directly from the country (region) of origin, its normal value shall be determined in accordance with  Item 1 of the preceding paragraph.  However, 
under the circumstances that the product is merely transhipped through the exporting country (region), 
or such product is not produced in the exporting country (region), or there is no comparable price for 
such product in the exporting country (region), the price of the like product in the country (region) of origin may be considered as the normal value.   Article 5   The export price of an import shall be determined according to the following 
methods by distinguishing among different cases: 
 (1) the price actually paid or payable for the import shall be the export price; or 
(2) in cases where there is no export price for the import or the price is unreliable, the export 
price may be constructed on the basis of the price at which the import is first resold to an independent buyer; however, if the import is not resold to an independent buyer, or not resold  G/ADP/N/1/CHN/2/Suppl.3 
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 in the condition as imported, the export price may be determined on the basis of a reasonable 
price constructed by the Ministry of Commerce. 
  Article 6   The margin of dumping is the amount by which the export price of an import is less 
than its normal value. 
 
 A fair and reasonable comparison shall be made between the export price and the normal 
value of an import, with due allowance fo r factors which affect price comparability. 
  The margin of dumping shall be established on the basis of a comparison of a weighted 
average normal value with a weighted average of pr ices of all comparable export transactions or by a 
comparison of the normal value and export price on a transaction-to-transaction basis.   Where the export prices differ significantly among different purchasers, regions or time periods, and therefore it is difficult to make co mparison through the methods prescribed in the 
preceding paragraph, a comparison may be made between a weighted average normal value with 
prices of individual export transactions.   Article 7   The term “injury” means material injury  or threat of material injury caused by 
dumping to an established domestic industry or materi al retardation of the establishment of such a 
domestic industry. 
 
 The Ministry of Commerce shall be responsible  for the investigation and determination of 
injury.  The anti-dumping investigation of injury to a domestic industry involving agricultural products shall be conducted by the Ministry of Comme rce jointly with the Ministry of Agriculture. 
 
 Article 8   The following factors shall be examined in the determination of injury caused by 
dumping to a domestic industry:  (1) whether the volume of dumped imports, including the volume of dumped imports either in 
absolute terms or relative to the production or  consumption of a like domestic product, has 
been increasing significantly, or the possibilit y of a significant increase in dumped imports; 
(2) the effects of dumped imports on prices, including the price undercutting by the dumped 
imports, or the significant suppressing or depressi ng effects on the price of a like domestic 
product, etc.; 
(3) the consequent impact of the dumped imports on the relevant economic factors and indices of 
the domestic industry; 
(4) the production capacity or export capacity of the exporting country (region) or the country 
(region) of origin, and inventories of  the product under investigation; and 
(5) other factors that may cause or have caused injury to a domestic industry. 
  The determination of a threat of material in jury shall be based on facts and not merely on 
allegation, conjecture or remote possibility. 
 
 When determining the injury caused by dumpi ng to a domestic industry, the determination 
shall be based on positive evidence, and the injuries caused by factors other than dumping must not be 
attributed to dumping.  
 Article 9   Where the dumped imports from more th an one country (region) simultaneously 
satisfy the following requirements, the effects of such dumped imports on a domestic industry may be cumulatively assessed:  G/ADP/N/1/CHN/2/Suppl.3 
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 (1) the margin of dumping established in rela tion to the dumped imports from each country 
(region) is no less than two per cent, and the volume of such imports from each country is not 
negligible; and 
(2) a cumulative assessment of the effects of the dumped imports is appropriate in light of the 
conditions of competition betw een the dumped imports and th e conditions of competition 
between the dumped imports a nd the like domestic product. 
  The volume of dumped imports shall normally be  regarded as negligible if the volume of 
dumped imports from a particular country (region) is found to account for less than three per cent of the total imports of the like product, unless c ountries (regions) which individually account for less 
than three per cent of the total imports of the like product collectively account for more than seven per 
cent of its total imports of the like product.   Article 10   The effect of the dumped imports shall be assessed in relation to the separate 
identification of the domestic production of the like product. If such separate identification of that 
production is not possible, the effect of the dumped imports shall be assessed by the examination of 
the production of the narrowest group or range of  products, including the like domestic product. 
 
 Article 11   The term “domestic industry” means th e domestic producers as a whole of the like 
products within the People’s Republic of China or  those of them whose collective output of the 
products constitutes a major proportion of the tota l production of those products, except that when 
domestic producers are related to the exporters or  importers or are themselves importers of the 
dumped imports or like products.  
 In exceptional circumstances, the producers within a regional domestic market may be 
regarded as a separate industry if the producers within such market sell all or almost all of the like 
products in that market, and the demand in that ma rket is not to any subs tantial degree supplied by 
domestic producers of the like products  located in other domestic regions. 
  Article 12   The term “like product” means the product that is identical to the dumped import, 
or in the absence of such a product, another pro duct that has characteristics closely resembling the 
dumped import.  
Chapter III Anti-Dumping Investigation 
  Article 13   Any domestic industry, natural person, legal person or rele vant organization on 
behalf of the domestic industry (hereinafter collect ively referred to as “the applicant”) may make a 
written application to the Ministry of Commerce fo r an anti-dumping investigation in accordance with 
the provisions of these Regulations.   Article 14   The application shall contain the following information: 
 
(1) the name, address and relevant information of the applicant; 
(2) a complete description of the import in questio n, including the name of the product, the 
exporting country (region) or the country (region) of origin concerned, the identity of known 
exporters or producers, information on the pri ce of the product destined for consumption in 
the domestic market of the exporting country (re gion) or the country (region) of origin, and 
information on the export price, etc.; 
(3) a description of the volume and value of  domestic production of the like product; 
(4) the effect of the volume and price of the im port in question on the domestic industry; and 
(5) other information that the applican t considers as necessary to provide. 
  G/ADP/N/1/CHN/2/Suppl.3 
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  Article 15   The application shall be sup ported by the following evidence: 
 (1) existence of dumping of the import in question; 
(2) injury caused to a domestic industry; and 
(3) existence of a causal link between the dumping and the injury. 
 
 Article 16   The Ministry of Commerce shall, within 60 days from the date of receipt of the 
application and relevant evidence submitted by the applicant, examine whether the application is 
made by or on behalf of the domestic industry, th e contents of the application and the evidence 
attached thereto, and shall decide whethe r or not to initiate an investigation. 
  Prior to the decision to initiate an investig ation, the government of the exporting country 
(region) concerned shall be notified. 
  Article 17   An application shall be considered to have been made by or on behalf of the 
domestic industry and an anti-dumping investigation ma y be initiated, if the application is supported 
by those domestic producers whose collective output  constitutes more than 50 per cent of the total 
production of the like product produced by that portion of the domestic industry expressing either 
support for or opposition to the application.  Howe ver, no investigation shall be initiated when the 
output of those domestic producers expressly supporting the application accounts for less than  25 per cent of total production of the like domestic product.   Article 18   If, in special circumstances, the Mini stry of Commerce decides to initiate an 
investigation without having received any written a pplication for an anti-dumping investigation, it 
shall proceed only if it has sufficient evidence of th e existence of dumping, injury and causal link to 
justify the initiation of an investigation.   Article 19   The Ministry of Commerce shall publish the decision to initiate an investigation 
and notify the applicant, the known exporters and importers, the government of the exporting country 
(region) and other interested orga nizations and parties (hereinafter  collectively referred to as “the 
interested parties”).   As soon as the decision to initiate an investigation is published, the Ministry of Commerce shall provide the full text of the written applicati on to the known exporters and the government of the 
exporting country (region). 
  Article 20   The Ministry of Commerce may conduct investigation and collect information 
from the interested parties by, among others, sendi ng questionnaires, using samples, holding public 
hearings and making on-the-spot verification. 
 
 The Ministry of Commerce shall provide opportu nities for the interested parties concerned to 
present their views and supporting arguments.   The Ministry of Commerce may send its staff members to the country (region) concerned to 
carry out investigation if it deems necessary to do  so, unless the country (region) concerned object to 
such an investigation.  
 Article 21   The interested parties shall provid e authentic information and relevant 
documentation to the Ministry of Co mmerce in the process of the inves tigation. In the event that any 
interested party does not provide authentic info rmation and relevant documentation, or does not 
provide necessary information within a reasonable time limit, or significantly impedes the investigation in other ways, the Ministry of Comme rce may make determinations on the basis of the 
facts already known and the best information available. G/ADP/N/1/CHN/2/Suppl.3 
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  Article 22   The interested parties may request the Ministry of Commerce to treat the 
information they provide as confidential if they co nsider that any disclosure of such information 
would create significantly adverse effects.   The Ministry of Commerce shall treat the info rmation provided by the interested parties as 
confidential if it considers that the request for c onfidentiality is justifiable, and shall require the 
interested parties to provide non-confidential summaries thereof. 
  No confidential information shall be disclo sed without permission of the interested party 
providing it. 
 
 Article 23   The Ministry of Commerce shall allow th e applicant and the interested parties to 
have access to the information relevant to the i nvestigation, provided that the information is not 
treated as confidential.  
 Article 24   The Ministry of Commerce shall, on the basis of its findings, make a preliminary 
determination on dumping and injury, as well as on whether there exists a causal link between dumping and injury.  The preliminary determination shall be published by the Ministry of Commerce. 
  Article 25   In cases where a preliminary determina tion on dumping, injury and the causal link 
between the two is affirmative, the Ministry of  Commerce shall conduct further investigations on 
dumping, the margin of dumping, the injury and its degree, and, on the basis of its findings, make a 
final determination. The final determination sh all be published by the Ministry of Commerce. 
  Before the final determination is made, th e Ministry of Commerce shall inform all known 
interested parties of the essential facts on  which the final determination is based. 
 
 Article 26   An anti-dumping investigation shall be concluded within 12 months from the date 
of publication of the decision to initiate the investig ation, and such period may be extended in special 
circumstances, but in no case shall the extension be more than six months.   Article 27   In any one of the following circumstances, an anti-dumping investigation shall be 
terminated and such termination shall be published by the Ministry of Commerce: 
 (1) the application has been withdrawn by the applicant; 
(2) there is no sufficient evidence of the existence of dumping, injury or causal link between the 
two; 
(3) the margin of dumping is less than two per cent; 
(4) the actual or potential volume of the dumped imports or the injury is negligible; or 
(5) other circumstances that the Ministry of Commer ce considers not appropriate to continue the 
anti-dumping investigation. 
 
 If the product under investigation imported from one  or some of the countries (regions) falls 
under one of the circumstances set forth in Item 2,  3, or 4 of the preceding paragraph, the  
anti-dumping investigation on such product shall be terminated. 
 
Chapter V Anti-Dumping Measures 
 
Section 1 Provisional Anti-Dumping Measures 
 
 Article 28   The following provisional anti-dumping measures may be applied if the 
preliminary determination establishes the existence of dumping and the injury caused by dumping to a 
domestic industry:  G/ADP/N/1/CHN/2/Suppl.3 
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 (1) imposition of provisional anti-dumping duties; or 
(2) provision of deposits, bonds or other forms of security. 
  The amount of provisional anti-dumping duties, deposits, bonds or other forms of security provided shall not exceed the margin of dumping established in the preliminary determination. 
 
 Article 29   The proposal imposing provisional anti-dumping duties shall be put forward by 
the Ministry of Commerce, and, on the basis of such a proposal, the State Council Tariff Commission shall make a decision which shall be published by  the Ministry of Commerce.  The decision on the 
provision of deposits, bonds or other forms of security  shall be made and published by the Ministry of 
Commerce.  The Customs shall implement the decisi on from the effective date set forth in the public 
notice.   Article 30  The period for applying provisional anti-dumping measures shall not exceed 
four months from the effective date set forth in the public notice regarding the decision on provisional 
anti-dumping measures, and, in special circumst ances, may be extended to nine months. 
  No provisional anti-dumping measures shall be  applied within 60 days from the date of 
publication of the decision to initiate the investigation. 
 
Section 2 Price Undertakings 
  Article 31   During the period of an anti-dumping i nvestigation, an exporter of the dumped 
imports may offer price undertakings to the Ministry of Commerce to revise its prices or to cease 
exporting at dumped prices. 
  The Ministry of Commerce may suggest price undertakings to an exporter.   The Ministry of Commerce shall not force an exporter to enter into price undertakings. 
 
 Article 32   The fact that an exporter does not offer price undertakings, or does not accept any 
suggestion regarding price undertakings, shall in no way prejudice the investigation and determination 
of an anti-dumping case.  The Ministry of Commerce h as the right to determine that a threat of injury 
is more likely to be realized if the exporter continues dumping the imports. 
 
 Article 33   If considering that a price undertaking made by an exporter is acceptable and in 
the public interest, the Ministry of Commerce may decide to suspend or terminate the anti-dumping 
investigation without applying provisional anti- dumping measures or imposing anti-dumping duties. 
The decision to suspend or terminate the anti-du mping investigation shall be published by the 
Ministry of Commerce.  
 If the Ministry of Commerce does not accept a price undertaking, it shall provide the reasons 
therefore to the exporter concerned.   Price undertakings shall not be sought or accepted unless the Ministry of Commerce has made a preliminary affirmative determination of dumping and injury caused by such dumping. 
 
 Article 34   After the suspension or termination of an investigation according to the provisions 
of Paragraph 1, Article 33 of these Regulations, the Ministry of Commerce shall continue the 
investigation of dumping and injury upon the request  of an exporter, or may do so if it deems 
necessary. G/ADP/N/1/CHN/2/Suppl.3 
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  On the basis of the findings of the investig ation prescribed in the preceding paragraph, the 
price undertaking shall automatically lapse if a nega tive determination is ma de on dumping or injury, 
or shall remain in force if the determination on both dumping and injury is affirmative. 
 
 Article 35   The Ministry of Commerce may require the exporter from whom an undertaking 
has been accepted to provide periodically informati on and documentation relevant to the fulfilment of 
such an undertaking, and make verificati on on such information and documentation. 
  Article 36   In cases where an exporter violates his price undertaking, the Ministry of 
Commerce may decide to resume the anti-dumping in vestigation immediately in accordance with the 
provisions of these Regulations, or, on  the basis of the best informa tion available, decide to apply 
provisional anti-dumping measures and levy anti- dumping duties retroactively on the products 
imported not more than 90 days prior to the a pplication of such provisional anti-dumping measures, 
except the products imported before the violation of the price undertaking.  
Section 3 Anti-Dumping Duties 
  Article 37   If a final determination establishes the existence of dumping and injury caused by 
dumping to a domestic industry, an anti-dumping dut y may be imposed. Imposition and collection of 
anti-dumping duties shall be in the public interest. 
  Article 38   The proposal imposing an anti-dumping duty shall be put forward by the Ministry 
of Commerce, and, on the basis of such a proposal , the State Council Tariff Commission shall make a 
decision which shall be published by the Ministry of Commerce.  The Customs shall implement the 
decision from the effective date set  forth in the public notice. 
  Article 39   Anti-dumping duties shall be imposed on products imported after the date of 
publication of the final determination, with the excep tion of the circumstances set forth in Articles 36, 
43 and 44 of these Regulations. 
  Article 40   Anti-dumping duties shall be paid  by importers of dumped imports. 
  Article 41   Anti-dumping duties shall be determined separately on the basis of the margin of 
dumping established for each individual exporter.  Where it is necessary to impose an anti-dumping 
duty on the dumped imports of an exporter who has not been included in the ongoing examination, an 
anti-dumping duty applicable to the exporter shall be determined in a reasonable way. 
  Article 42   No anti-dumping duties shall be levied in excess of the margin of dumping 
established in a final determination. 
 
 Article 43   In cases where a final determination estab lishes the existence of a material injury, 
and provisional anti-dumping measures have been applied prior to the fi nal determination,  
anti-dumping duties may be levied retroactively fo r the period during which provisional anti-dumping 
measures have been applied. 
 
 In cases where a final determination establishes the existence of a threat of material injury, 
and provisional anti-dumping measures have been app lied in the situation that the absence of such 
provisional anti-dumping measures would have led to a determination of material injury,  
anti-dumping duties may be levied retroactively fo r the period during which provisional anti-dumping 
measures have been applied. 
 
 If the definitive anti-dumping duty determined in a final determination is higher than the 
provisional anti-dumping duty paid or payable, or the amount estimated for the purpose of the  G/ADP/N/1/CHN/2/Suppl.3 
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 security, the difference shall not be collected; if the definitive duty is lower than the provisional  
anti-dumping duty paid or payable, or the amount estimated for the purpose of the security, the difference shall be refunded or the duty recalculated, as the case may be.   Article 44   When the following two circumstances exist simultaneously, an anti-dumping 
duty may be retroactively levied on products importe d not more than 90 days prior to the date of 
application of provisional anti-dumping measures, except the products imported before the initiation 
of the investigation: 
 
(1) there is a dumping history of the dumped imports causing injury to the domestic industry, or 
the importer of the dumped imports was, or should have been, aware that the exporters 
practice dumping and that such dumping would cause injury to the domestic industry; and 
(2) the dumped imports were massively imported in a short period of time and were likely to 
seriously undermine the remedial effect of th e definitive anti-dumping duty to be applied. 
 
 The Ministry of Commerce may, after initiati ng an investigation, take such measures as 
import registration of the import concerned as may be necessary in order for a retroactive collection of 
an anti-dumping duty if it has sufficient evidence to prove the simultaneous existence of the two 
circumstances set forth in the preceding paragraph.  
 Article 45   Where a final determination decides not to levy an anti-dumping duty, or does not 
decide a retroactive levy of an anti-dumping dut y, the provisional anti-dumping duty collected and 
any deposits made during the period of the applica tion of provisional anti-dumping measures shall be 
refunded, and any bonds or other forms of security released.  
 Article 46   If an importer of dumped imports can provide evidence to prove that the  
anti-dumping duty already paid is higher than the margin of dumping, he can apply to the Ministry of Commerce for duty refund.  The Ministry of Commerce shall, upon examination and verification of the application, make a proposal to the State C ouncil Tariff Commission, who shall make a decision 
to refund the extra duty on the basis of the propo sal made by the Ministry of Commerce, and the 
Customs shall implement the decision. 
 
 Article 47   After an import is subject to an an ti-dumping duty, new expor ters who have not 
exported the product in question to the People’s Repub lic of China within the period of investigation, 
may apply to the Ministry of Commerce for a separ ate determination of the margin of dumping, 
provided that they can show that they are not rela ted to any of the exporters who are subject to the 
anti-dumping duty.  The Ministry of Commerce shall promptly carry out a review and make a final 
determination.  No anti-dumping duties shall be le vied on imports from such exporters or producers 
while the review is being carried out, but measures may be taken as provided in Item 2, Paragraph 1 
of Article 28 of these Regulations.  
Chapter V Duration and Review of Anti-Dumping Duties and Price Undertakings 
 
 Article 48   The period for the levy of an anti-dumping duty and fulfilment of a price 
undertaking shall not exceed five years. However, the period for the levy of the anti-dumping duty may be extended as appropriate if, as a result of the re view, it is determined that the termination of the 
anti-dumping duty would be likely to lead to continuation or recurrence of dumping and injury. 
 
 Article 49   After an anti-dumping duty has taken effect, the Ministry of Commerce may 
decide on justifiable grounds to review the n eed for the continued imposition of the anti-dumping 
duty; such a review may also be conducted, provi ded that a reasonable period of time has elapsed, 
upon request by the interested parties and on the basis of examination of the relevant evidence 
submitted by the interested parties. G/ADP/N/1/CHN/2/Suppl.3 
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  After a price undertaking has taken effect, th e Ministry of Commerce may, on justifiable 
grounds, decide to review the need for the con tinued fulfilment of the price undertaking; such a 
review may also be conducted, provided that a reas onable period of time has elapsed, upon request by 
the interested parties and on the basis of examin ation of the relevant evidence submitted by the 
interested parties.  
 Article 50   On the basis of the findings of a review, the Ministry of Commerce shall, in 
accordance with the provisions of these Regulations , make a proposal on the retention, revision, or 
termination of an anti-dumping duty, and the State Council Tariff Commission shall, in light of the proposal made by the Ministry of Commerce, ma ke a decision which shall be published by the 
Ministry of Commerce. Meanwhile, the Ministry of  Commerce may make a decision on the retention, 
revision, or termination of a price undertaking and publish such decision in accordance with the 
provisions of these Regulations.   Article 51   The review proceedings shall be con ducted with reference to the relevant 
provisions of these Regulations on anti-dumping investigation. 
  Any review shall be concluded within 12 mont hs from the date of decision of initiation of 
such a review.   Article 52   During the period of review, the revi ew proceedings shall not impede the 
application of anti-dumping measures. 
 
Chapter VI Supplementary Provisions 
 
 Article 53   Where any party is not satisfied with a final determination made under Article 25 
of these Regulations, or not satisfied with a decision on whether or not to impose an anti-dumping 
duty or a decision on retroactive imposition of an anti-dumping duty, reimbursement of an  
anti-dumping duty or imposition of an anti-dumping duty on new exporters, which is made under 
Chapter IV of these Regulations, or not satisfied with the review findings made under Chapter V of 
these Regulations, it may, in accordance with the law,  apply for administrative reconsideration or file 
a lawsuit in the people’s court. 
 
 Article 54   A public notice issued under these Regulati ons shall contain, inter alia, important 
information, facts, reasons, basis, findings and conclusions, etc.   Article 55   The Ministry of Commerce may take appropriate measures to prevent the 
circumvention of anti-dumping measures. 
  Article 56   Where any country (region) discriminatorily applies anti-dumping measures on 
the exports from the People’s Republic of China, th e People’s Republic of China may, on the basis of 
the actual situations, take corresponding measures against that country (region). 
 
 Article 57   The Ministry of Commerce shall be resp onsible for foreign-related consultation, 
notification and dispute settlement concerning anti-dumping activities. 
  Article 58   The Ministry of Commerce may, in accordance with these Regulations, formulate 
specific implementing measures. 
 
 Article 59   These Regulations shall be effective as  of 1 January 2002.  The provisions on 
anti-dumping contained in the Regulations of th e People’s Republic of China on Anti-dumping and 
Anti-subsidy promulgated by the State Council on 25 March 1997 shall be repealed simultaneously. 
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