RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/AHG/W/79
22 March 2000
(00-1195)
Committee on Anti-Dumping Practices
Ad Hoc Group on ImplementationOriginal:  English
PRACTICAL ISSUES AND EXPERIE NCE IN APPLYING ARTICLE 2.4.2.
TERMINATION OF INVESTIGATIONS UNDER ARTICLE 5.8
IN CASES OF DE MINIMIS  IMPORT VOLUME
PRACTICAL ISSUES AND EXPERIENCE IN CASES INVOLVING
CUMULATION UNDER ARTICLE 3.3
PRACTICAL ISSUES AND EXPERIENCE WITH RESPECT TO
QUESTIONNAIRES AND REQUESTS FOR INFORMATION
UNDER ARTICLES 6.1 & 6.1.1.
Paper by Canada
The following communication, dated 21 March 2000, has been received from the Permanent
Mission of Canada.
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PRACTICAL ISSUES AND EXPERIE NCE IN APPLYING ARTICLE 2.4.2
Subject to the provisions governing fair compar ison in paragraph 4, the existence of margins
of dumping during the investigation phase shall normally be established on the basis of a comparison
of a weighted average normal value with a weighted average of prices of all comparable exporttransactions or by a comparison of normal value and export prices on a transaction-to-transaction
basis.  A normal value established on weighted average basis may be compared to prices of individual
export transactions if the authorities find a pattern of export prices which differ significantly among
different purchasers, regions or time periods, and if an explanation is provided as to why such
differences cannot be taken into account appropriately by the use of weighted average-to-weightedaverage or transaction-to-transaction comparison.
Canadian Practice
The Special Import Measures Act (SIMA) has in corporated these requirements following the
implementation of the WTO Anti-Dumping Agreement (the Agreement).  The legislation states that
the margin of dumping in relation to any goods from a particular exporter is zero or the amount
determined by subtracting the weighted average export price of the goods from the weighted average
normal value of the goods, whichever is greater.  Subsequently, the margin of dumping for a country
is the weighted average of the margins of dumping of all exporters of the subject goods in that
country.G/ADP/AHG/W/79
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The Agreement permits comparisons of a weighted average normal value with an individual
export transaction if the authorities find that there are significant variations in the prices.  Under
Canada’s legislation, there is specific provision for price variations from a particular exporter where
the pricing pattern differs significantly among purchasers, regions in Canada or among time periods.
Where there are significant variations, the Commissioner of Customs and Revenue may determine themargin of dumping in relation to the goods of that exporter based on comparisons of the weighted
average normal values-to-individual export prices.  Should the Commissioner decide to take this
approach, the reasons justifying this decision and the methodology of determining normal values are
disclosed in the Statement of Reasons issued on the decision day.  To date, this provision has not been
invoked in an investigation.
ARTICLE 5.8 – TERMINATION OF INVESTIG ATIONS UNDER ARTICLE 5.8 IN CASES
OF DE MINIMIS  IMPORT VOLUME
An application under paragraph 1 shall be rejected and an investigation shall be terminated
promptly as soon as the authorities concerned are satisfied that there is not sufficient evidence of
either dumping or of injury to justify proceeding with the case.  There shall be immediate termination
of an investigation in cases where the authorities determine […] that the volume of dumped imports,
actual or potential (emphasis added) is negligible”.  The volume of dumped imports shall normally be
regarded as negligible if it accounts for less than 3 per cent of the imports of the like product in the
importing Member, unless countries who individually account for less than 3 per cent collectively
account for more than 7 per cent of imports of the like product in the importing Member.
Canadian Practice
Once an investigation has been initiated, the investigating authorities must make a
preliminary determination not later than 90-days after the initiation of the investigation as to whetherthe goods are in fact being dumped and whether there is evidence that discloses reasonable indication
that the dumping has caused injury or retardation or is threatening to cause injury.
Within this period, investigating authorities sh all terminate the investigation with respect to
some or all of the goods if, for among other reasons consistent with the Article 5.8 of the Agreement,
it is determined that the actual or potential volume of dumped goods is negligible.
The term “negligible” is defined in SIMA consistent with Article 5.8 of the Agreement.  The
volume of dumped goods from a country is considered negligible when it accounts for less than 3 per
cent, by volume, of all goods released to Canada which have the same description as the dumped
goods.  Where the Canadian Customs and Revenue Agency (CCRA) conducts its examination of
dumped imports and determines that the volume of dumped imports from a specific country isnegligible, it terminates the investigation for that country.
However, where dumped goods from three or more countries, each of whose volumes
individually are negligible, when combined account for more than 7 per cent of all goods exported
into Canada that have the description as the dumped goods, the volume of dumped goods from thosecountries is not considered negligible.
In its injury inquiry, the Canadian International Trade Tribunal (CITT) also considers the
question of negligibility as a necessary condition for cumulation.  Where the CITT finds that the
volume of goods is negligible, that country’s imports are not cumulated in the injury assessment. TheCITT’s practice is to assess imports separately to determine whether they have caused or threatened to
cause injury.G/ADP/AHG/W/79
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Questions for Discussion
How do other Members apply the concept of “potential” volumes of dumped imports?
ARTICLE 3.3. – PRACTICAL ISSUES AND EX PERIENCE IN CASES INVOLVING
CUMULATION
Where imports from more than one country are simultaneously subject to anti-dumping
investigations, the investigating authorities may cumu latively assess the effects of such imports if they
determine that (a) the margin of dumping in respect of each country is more than de minimis  as
defined in paragraph 8 of Article 5 and the volume of imports from each country is not negligible and
(b) a cumulative assessment of the effects of the imports is appropriate in light of the conditions ofcompetition between the imported goods and the like domestic goods.
Canadian Practice
Cumulation of injurious effects of imports from more than one country is provided for in
subsection 42(3) of SIMA.  The ability to cumu late is, however, expressly subject to the “ de minimis ”
and “appropriateness” conditions set out in Article 3.3 of the Agreement.
In considering the question of injury or reasonable indication of injury, it has been Canada’s
general practice to cumulate the impact of dumping from all named sources and to examine its totaleffect on the domestic industry, where there were no grounds of de minimis  margins or negligible
volumes.  Regarding conditions of competition, factors typically considered include fungibility or
substitutability between the imported products and the extent to which the dumped goods from each
country competed against each other and domestic like goods.
PRACTICAL ISSUES AND EXPERIENCE WITH RESPECT TO QUESTIONNAIRES AND
REQUESTS FOR INFORMATION UNDER ARTICLES 6.1 AND 6.1.1
Article 6.1
All interested parties in an anti-dumping investigation shall be given notice of the information
which the authorities require and ample opportunity to present in writing all evidence which theyconsider relevant in respect of the investigation in question.
Article 6.1.1
Exporters or foreign producers receiving questionnaires used in an anti-dumping investigation
shall be given at least 30 days for reply.1   Due consideration should be given to any request for an
extension of the 30-day period and, upon cause shown, such an extension should be granted whenever
practicable.
                                                     
1 As a general rule, the time-limit for exporters shall be counted from the date of receipt of the
questionnaire, which for this purpose shall be deemed to have been received one week form the date on which itwas sent to the respondent or transmitted to the appropriate diplomatic representative or the exporting Memberor, in the case of a separate customs territory Member of the WTO, an official representative of the exporting
territory.G/ADP/AHG/W/79
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Canadian Practice
In order to obtain evidence, both the CCRA and the CITT have authority to request
information from exporters and foreign producers.
Questionnaire to Determine the Margin of Dumping
The exporter’s questionnaire that is sent out by the CCRA specifies the information required
to determine the normal values, export prices and margins of dumping.  If a respondent fails to
provide this detailed information, it will be subject to dumping margins based on facts available.  At
the initiation stage, it may not be apparent whether the exporter is also the producer of the goods.
Therefore, the questionnaire will indicate that in the case where the exporter does not produce thesubject goods, that section of the questionnaire on cost of production must be sent to the producer and
CCRA is to be advised so that the producer has the same amount of time to reply as that provided for
in the Agreement.
CCRA’s exporter’s questionnaire is divided into a number of sections:
- General Instructions: This section covers the legal definition of the goods, the period of
investigation, definitions of the terms used and explanations on the process and the manner in
which to respond to the questions.  There are specific instructions on the classification of the
information provided, along with the treatm ent and disclosure of non-confidential and
confidential information.
- General Information: This section relates to the corporate entity, the goods produced, and the
exporter’s domestic and export markets.
- Export Information: This information is required to determine the export practices and the
export prices.
- Domestic Sales Information: The information is required to determine the normal values of
the subject goods.
- Financial Data and Costing Information: The information is used to determine whether the
domestic sales are profitable.
- Certification:  It provides the information to be reproduced on company letterhead on the
veracity, accuracy and completeness of the submission.
In the case of potential non-market economy countries and emerging market economy
countries, the exporter’s questionnaire may have additional questions on the degree of state
involvement in the exporter’s industry.
Where warranted, the importers are sent questionnaires requesting information to substantiate,
the information supplied by the exporter, and to determine the export prices.  Where the transactions
are between associated parties, there are additional questions to determine the relationship, how this
influences the prices and to determine export prices.
In accordance with the Article 6.1.1, the exporter is allowed 37 days to reply, which includes
7 days for transmission.   Where information was requested at the time of initiation and it is necessary
to request that information again at the preliminary determination because it was not supplied, then
there is no requirement to allow 37 days for a response to the second request for information.
Supplemental information may be requested upon review of the exporter’s submission, or after a
meeting where responses are reviewed in detail.  This information must be submitted in a timelyfashion in order for it to be considered when calculating the final values.
Requests for extensions of the deadlines for reply to the questionnaires are examined on a
case-by-case basis taking into account the reasons for the request.G/ADP/AHG/W/79
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CITT Foreign Manufacturers Questionnaire
The information requested in the CITT Foreign Manufacturer’s Questionnaire is for use by
the CITT in its injury inquiry.  The information is required to supplement data available from othersources and is primarily aimed at obtaining information that will be used in the determination of the
threat of future injury.  Information that is requested includes ownership, affiliations, annual reports,
state of the foreign home market, plant locations and capabilities, exports to other markets, export
marketing practices, inventories, production, capacities, and plans.
The CITT normally requests responses by a specified filing date.  However, it grants
exemptions to the deadlines in a ma nner consistent with the Agreement.
The questionnaire is divided into two parts:Part I – deals with information that is public in nature and any request to treat this information
as confidential must be justified in writing.
Part II – deals with information that is confidential in nature and that will be not be made
public in such a manner as to be available for the use of any business competitor or rival of the
reporting person, firm or corporation.
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