RESTRICTED
WORLD TRADE G/ADP/AHG/W/3
21March 1997
ORGANIZATION(97-1184)
Original: English Committee onAnti-Dumping Practices
AdHocGroup onImplementation
TOPICS 1,5AND 6*
Proposals bytheUnited States
Thefollowing communication, dated 14March 1997, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
PROTECTION OFBUSINESS PROPRIETARY DATA UNDER ARTICLE 6.5
Introduction
Article 6.5oftheAgreement onImplementation ofArticle VIoftheGeneral Agreement on
Tariffs andTrade 1994(Anti-Dumping Agreement) concerns theuseofbusiness proprietary information
inanti-dumping investigations.
TheCommerceDepartment(Department)andtheUnitedStatesInternationalTradeCommission
(Commission) havestatutory authority torelease business proprietary information (BPI) submitted by
private parties during thecourse ofananti-dumping (AD) (orcountervailing duty(CVD)) proceeding.1
Thestatute authorizes boththeDepartment andtheCommission torelease BPItorepresentatives of
interested parties pursuant toanAdministrative Protective Order (APO) which governs howBPIis
tobemaintained andused. TheDepartment andtheCommission issue andadminister APOs
independently inaccordance withdetailed regulations.2TheDepartment isamending itsregulations
tosimplify itsprocedures andexpects them tobeeffective inthenearfuture.
Submitting Business Proprietary Information
Parties submitting business proprietary information mustindicate onthefrontofthedocument
thatitcontainssuchprotectedinformation,andonwhatpages.Eachpagecontainingbusinessproprietary
information mustalsobemarked. Thesubmissions mustbetransported inenvelopes thatalsoidentify
thenature oftheinformation contained inthedocument.
*Seedocument G/ADP/W/401 fordescriptions oftopics.
1Section 777(c)(1)(A) oftheTariff Actof1930 ("the Act").
2TheDepartment 'sregulations aresetforth at19CFR 353.34 (forAD)and19CFR 355.34 (forCVD).
TheCommission 'sregulations aresetforth at19CFR 207.7.G/ADP/AHG/W/3
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Sometimes thereisadispute overwhether information isbusiness proprietary orpublic. The
disputes areresolved bytheindividual agency -either theDepartment ortheCommission -towhich
theinformation issubmitted. Ifapartythatsubmits information doesnotagree withanagency decision
thatitshould betreated aspublic, theagency willreturn thatinformation totheparty thatsubmitted
it.
Parties submitting adocument containing business proprietary information arerequired tofile
apublic version ofthedocument. Thepublic version mustgenerally befilednolaterthanonebusiness
dayaftertheduedateofthebusiness proprietary version ofthedocument. Thispractice isknown
asthe"one-day lag"rulebytheDepartment andasthe“24-hour rule”bytheCommission. Ithas
beenveryhelpful toensure thatbusiness proprietary information isnotinadvertently released inthe
public version ofthesubmission.
Inpublic versions ofdocuments filedwiththeCommission, parties simply redact BPI.Inpublic
versions ofdocuments filedwiththeDepartment, parties maychoose toeither range orindex business
proprietary numerical data. Ifparties choose torange numerical data, thefigures provided must be
within 10% oftheactual number. Where thenumber issosmall thatarange of10% would be
impractical, arange of20%maybeuseduponreceipt ofapproval fromtheDepartment. Voluminous
data, suchascomputer printouts, maybesummarized byranging atleast1%ofthedataincluded.
Aparty must beconsistent initsuseofranged orindexed data.
Access toBusiness Proprietary Information
TheDepartment hasoneoffice thatisresponsible fortheentire APO process inallADand
CVD proceedings. This ensures thattheDepartment consistently protects business proprietary
information submitted toit.AttheCommission, theAPOprocess isalsooverseen byasingle office.
Only arepresentative ofaninterested party (such asaUSorforeign producer, importer,
exporter, USlabour union, orforeign government) mayhaveaccess tobusiness proprietary information
ofanother party. Therepresentative isusually alawyer, economist ortradespecialist. Representatives
aretypically from private laworconsulting firms; arepresentative whoisinvolved incompetitive
decisionmaking foraninterested party isnoteligible toobtain access toBPIunder anAPO. The
representative filesanapplication witheachagency fromwhich itdesires toobtain BPI,asking toreceive
allBPIfiledwiththatagency inaparticular proceeding. Iftherepresentative ’sapplication isapproved,
theDepartment and/or Commission authorizes therepresentative toreceive BPIsubmitted tothatagency
under theAPO. TheAPO requires therepresentative tousetheinformation onlyasauthorized by
theAPO, toadopt office procedures toprevent unauthorized disclosure oftheinformation, andtoreport
totheagency anyviolation oftheterms oftheAPO.
Department andCommission APOs require thatarepresentative whoobtains BPIsubject to
APO cannot disclose thatBPItoanyperson notsubject totheAPO. Thismeans therepresentative
maynotreveal suchBPItoofficials oftheinterested party thatitrepresents. Additionally, when a
representative isnotusing BPIsubject toAPO, itmust store theBPIinalocked filecabinet, vault,
orsafe.
Thestatute specifies thatBPIsubmitted totheDepartment ortheCommission shallnotbe
disclosed, without theconsent oftheperson whosubmitted theBPI,toanyperson notsubject toAPO,
other thantoanofficer oremployee oftheDepartment ortheCommission whoisdirectly concerned
withcarrying outtheinvestigation inconnection withwhich theinformation issubmitted, oranyAD
orCVD review covering thesame merchandise, orofficers oremployees oftheUSCustoms Service
directly involved inconducting afraud investigation relating toanADorCVD proceeding.G/ADP/AHG/W/3
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Inthepast,theDepartment hasrestricted theuseofbusiness proprietary information tothe
segment oftheproceeding inwhich itwassubmitted. A“segment ”ofaproceeding maybean
investigation orasingle administrative review, ascope proceeding, orachanged circumstances review.
Arepresentativemustdestroyanotherparty’sbusinessproprietaryinformationitreceivedinonesegment,
andnotuseitinafuture segment. Thenewstatute andregulations allow limited useofbusiness
proprietary information infuture segments, suchasinformation relating tocostofproduction. In
addition, thestatute identifies three specific instances inwhich theDepartment would beexpected to
useinformation from different segments ofproceedings ordifferent proceedings inthree specific
instances: (1)information from prior segments maybeusedinasunset orchanged circumstances
review ofthesame proceeding (section 777(b)(1) oftheAct); (2)business proprietary information
fromasunset orchanged circumstances review resulting inrevocation maybeusedinaninvestigation
onthesame merchandise from thesame country initiated within twoyears ofrevocation
(section 777(b)(3) oftheAct); and(3)information from aterminated investigation maybeusedin
anewinvestigation ofthesubject merchandise fromthesameandanother country within threemonths
oftermination oftheprior investigation (sections 704and734oftheAct).
APO Violations
TheDepartment andtheCommission vigorously enforce APOs tomaintain theintegrity of
theAPOprocess andtoensure thatthose parties thatsubmit BPIcanbeconfident thattheirproprietary
information willbeprotected. Each agency promptly responds toanallegation ofanAPO violation
andtakesquick action toprotect theinformation thatmayhavebeenimproperly disclosed. Eachagency
investigates thecause oftheimproper disclosure andsanctions therepresentative responsible forit.3
TheCommission annually publishes intheFederal Register alistofsanctions ithasimposed forAPO
breaches, including private letters ofreprimand, public reprimands, andrestrictions onaccess toBPI
infuture investigations.
HEARINGS
Section 6.2oftheWTO Agreement onImplementation ofArticle VIoftheGATT 1994requires
thattheinterested parties inananti-dumping (AD) investigation beprovided withfullopportunity to
defend theirinterest throughout thecourse oftheinvestigation. Inthisregard, theagency responsible
foradministering theADAgreement isrequired toprovide anavenue forallinterested parties topresent
theirarguments andrebuttals totheopposing party'sarguments foruseinitsfinaldetermination.
TheUSADlawcarries outtheobligations prescribed inSection 6.2byproviding interested
parties withopportunities topresent theirviews atnumerous stages ofinvestigations conducted byboth
theDepartment ofCommerce (Department) andtheInternational Trade Commission (Commission).
Department ofCommerce Procedures
During thecourse ofinvestigations carried outbytheDepartment, parties aregranted theright
torequest apublic hearing, submit caseandrebuttal briefs, andprovide written comments atseveral
stages oftheproceeding.4Inaddition, inaccordance withArticle 6.5,interested parties aregiven
theopportunity toobtain allinformation collected bytheagencies inthecourse ofaninvestigation,
including business proprietary information released under administrative protective order.
3Sanctions mayinclude acivilpenalty anddebarment from practice before theadministering authority or
theCommission.
4Sections 351.309 and351.310 oftheproposed anti-dumping regulations.G/ADP/AHG/W/3
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Interested parties mayrequest apublic hearing within thirty days5aftertheDepartment publishes
itspreliminary determination inaninvestigation orthepreliminary results ofanadministrative review.6
When apublic hearing isrequested, itisscheduled tobeheldafterthepreliminary determination and
submission ofcaseandrebuttal briefs, butpriortothefinaldetermination orthefinalresults ofreview.
Requests forhearings aremade bytheinterested parties inmost investigations andreviews.
Inpreparation forthehearing andasameans fortheagency tohaveample timetoconsider
adequately allthearguments andrebuttals priortothehearing, interested parties intending toparticipate
inthehearing mustfileawritten casebrief. Thecasebriefmustpresent allarguments thatcontinue
toberelevant intheproceeding. Arebuttal brief canthenbesubmitted (also inwriting) byeach
interested party, usually within fivedaysoffiling thecasebrief. Therebuttal arguments mayrespond
onlytoarguments raised inthecasebriefs.
Atthepublic hearing, theparties present theirarguments orally ontheissues thathavearisen
during theproceeding. Parties arealsogiven anopportunity topresent oralrebuttals. These arguments
andrebuttals must belimited tothose points raised inthewritten caseandrebuttal briefs.
Thehearing isconducted byahighlevel agency official. During thehearing, thisofficial,
aswellastheothergovernment officials whoareattending thehearing, mayaskquestions and/or request
additional information relevant forconsideration intheDepartment ’sfinaldeterminations. Averbatim
record ismade ofthehearing which isincluded inthepublic fileofthecase,which theagency maintains
andwhich isopentopublic inspection during business hours.
Hearings arepublic. Generally, theinterested parties, theirlegal representatives, andthe
agency 'sstaffresponsible fortheinvestigation orreview arepresent. However, atsome hearings,
other parties, including other government agencies, attend. Sometimes members ofthepress attend,
aswell. Only those parties thathavesubmitted caseandrebuttal briefs prior tothehearing may
participate inthediscussion. Thelength ofthehearing depends onthenumber ofissues tobediscussed.
Theaverage length ofahearing isthree tofourhours. However, insome instances, hearings can
takeseveral days.
Normally, onlyinformation thatisavailable tothepublic isdiscussed atahearing. When
aninterested party totheproceeding believes thatitisnecessary tomake reference toproprietary
information foritsarguments orrebuttals, thatparty mayrequest theagency toconduct a"closed
session." Iftheagency determines thattheuseofproprietary information isrequired and,therefore,
aclosed session isconducted, discussion atthisclosed session islimited tothatpartofthehearing
thatrequires theuseofsuchinformation. After thepartofthehearing thatisopentothepublic is
concluded, theagency insures thatallparties exitthehearing room except those parties whomaybe
permitted access toproprietary information. Theagency alsotakes precautions regarding thecourt
reporter. Thecourt reporting firmandtheindividual court reporter must signaspecial contractual
agreement withtheagency nottodisclose BPIinadvance ofthehearing.
5Inaninvestigation, thepreliminary determination isusually due160daysfrom thedatethepetition isfiled
andthefinaldetermination isusually due235daysfrom thedatethepetition isfiled. Case briefs areusually
duewithin 50daysafterthepreliminary determination andtherebuttal briefs within fivedaysafterthetimelimit
forfiling thecasebrief. Thehearing isusually scheduled within several daysafterrebuttal briefs arereceived.
6Wheneverthetermpreliminarydeterminationisused,italsoincorporatespreliminaryresultsofadministrative
reviews.G/ADP/AHG/W/3
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International Trade Commission Procedures
During afullinvestigation before theCommission, parties areformally given atleastseven
opportunities toprovide argument, information, orcomments. These stages are(1)thepreliminary
phase staffconference, (2)thepostconference written brief, (3)written comments ondraftquestionnaires
forthefinalphase oftheinvestigation, (4)awritten prehearing brief, (5)testifying atthefullhearing
before theCommissioners andstaff, (6)awritten posthearing brief, and(7)finalwritten comments
onlate-arriving information. Moreover, parties areprovided numerous other opportunities tocontact
Commissioninvestigativestaff,aswellastoprovidedatainresponsetotheCommission’squestionnaires
concerning injury issues.
During theCommission ’sproceedings, notice ofthecommencement ofapreliminary phase
ofaninvestigation ispublished intheFederal Register, andnotice isgiven ofahearing before the
Commission investigative staff(called the“conference ”)where interested parties canprovide testimony
evenduring thepreliminary phase oftheinvestigation. Parties arealsogiven theopportunity tofile
written briefs where theymaycomment ontestimony presented attheconference, challenge evidence
orarguments made bytheiropponents, orcomment oninformation released under theprotection of
theAPO.7
TheCommission willissue questionnaires during thefinalphase oftheinvestigation, toUS
producers ofthedomestic likeproduct, importers oftheallegedly dumped orsubsidized merchandise,
andtopurchasers oftheimports anddomestic likeproduct. Parties aregiven anopportunity tocomment
inwriting onthecontent ofthose questionnaires.8After anotice ofanaffirmative preliminary
determination bytheDepartment, theCommission willissueandpublish anotice ofscheduling, setting
forth thedates forahearing before thefullCommission andforfiling written briefs.9Throughout
thefinalphase oftheinvestigation, interested parties totheinvestigation areserved withsubmissions
made byother parties, andbusiness proprietary information received bytheCommission isreleased
toparties under theAPO.
Prior tothehearing andfiling ofprehearing briefs, thestaffprepares aprehearing report,
summarizing theinformation received bytheCommission atthattime. Thereport isreleased tothe
parties sothattheirprehearing briefs mayreflect themostcurrent datapracticable.10Eachparty then
hasanopportunity tofileaprehearing brief, attend andpresent testimony atahearing before the
Commissioners andstaff, andrespond atthehearing orinawritten posthearing brieftothearguments
oftheparties andtothequestions oftheCommission andstaff.11Aparty mayrequest thataportion
ofthehearing beclosed tothepublic inorder todiscuss business proprietary information thatcould
nototherwise bediscussed inapublic hearing.12Afinalreport isprepared bythestaffsummarizing
theinformation obtained. Thisreport isreleased totheparties along withanylate-arriving information
7See19CFR 207.3 (requirement ofparties toserve information submitted onother parties), 207.7(a)(1)
(release ofbusiness proprietary information under APO), 207.12 (notice ofpreliminary phase ofinvestigation
published), and207.15 (provision forwritten briefs andconference).
8See19CFR 207.20(b).
9See19CFR 207.21.
10See19CFR 207.22.
11See19CFR 207.23, 207.24, and207.25.
12See19CFR 207.24(d).G/ADP/AHG/W/3
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thathadnotpreviously beenreleased totheparties. Theparties arethengiven afinalopportunity
tocomment onthisinformation.13
ARTICLE 5.5NOTIFICATION REQUIREMENT
Article 5.5oftheWTO Anti-Dumping Agreement requires that,“afterreceipt ofaproperly
documented application andbefore proceeding toinitiate aninvestigation, theauthorities shallnotify
thegovernment oftheexporting Member concerned. ”Atthesame time, theadministering agency
(“agency ”)shallavoid anypublicizing oftheapplication unless adecision hasbeenmade toinitiate
aninvestigation.
TheUnited States hasincluded provisions inbothitsanti-dumping law14andregulations15to
ensure thatthese requirements aremet. Thestatute provides thattheDepartment ofCommerce
(Department) shallnotify thegovernment concerned bydelivering apublic version ofthepetition to
anappropriate representative ofthatgovernment. Inpractice, assoonasthenewpetition isproperly
filed(withboththeDepartmentandtheInternationalTradeCommission(Commission)),theDepartment
promptly contacts thelocal embassy oftheexporting country. Theembassy typically sends a
courier-messenger totheDepartment topickupacopyofthepublic version ofthepetition.
TheUnited States issensitive totheimpact thatdisclosure ofapending petition could have
ontrade intheproduct which could bethesubject ofaninvestigation. Boththedomestic industry
andtheparties which maybesubject tothepetition might beaffected. Inthisregard, theagency makes
every effort tolimitknowledge ofandaccess topending ordraftpetitions.16Therefore, incompliance
withtheWTO constraint onpublicizing apending petition, theDepartment willnotdiscuss thepending
petition withparties other thanthepetitioners. Furthermore, theDepartment willnotaccept any
unsolicited oralorwritten communication fromanyperson other thanthepetitioner before adecision
ismade whether ornottoinitiate aninvestigation.
ThefactthattheDepartment doesnotpublicize thedraftorofficial filing ofapetition does
notaffect thedomestic industry ’sprerogative toannounce anyofitsintentions regarding thefiling
ofsuchapetition ordraftpetition.
13See19CFR 207.30.
14Section 732(b)(3)(A) oftheanti-dumping law.
15Section 351.202 oftheproposed anti-dumping regulations.
16Inpractice, apotential petitioner mayfilequestions and/or adraft petition forreview andcomment by
theDepartment, prior tofiling theofficial petition. Thisearly review helps toensure thattheofficial petition
willmeet thelegal sufficiency required forinitiating aninvestigation. During thetimeofreview ofboththe
draftandultimately, theofficial petition, theagency assigns onlyalimited number ofstaffmembers todetermine
thesufficiency ofthepetition. Thisprocedure ensures theconfidential nature ofthepetition.