WORLD TRADE
ORGANIZATIONG/ADP/N/1/JPN/2/Suppl.3
G/SCM/N/1/JPN/2/Suppl.3
19 June 2002
(02-3417)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS
UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
JAPAN
Supplement
The following communication, dated 10 June 2002, has been received from the Permanent
Mission of Japan.
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Upon instructions from my authorities, I am sending you herewith Japan's notification
pursuant to:  (a) Article 18.5 of the Agreement on Anti-Dumping Practices;  (b) Section 15(c) of
Protocol of Accession of the Peopl e's Republic of China;  and (c) Paragraph 151(b) of the Report of
the Working Party on the Accession of China.G/ADP/N/1/JPN/2/Suppl.3
G/SCM/N/1/JPN/2/Suppl.3
Page 2
Pursuant to Article 18.5 of the Anti-Dumping Ag reement, Section 15(c) of Protocol on the
Accession of the People's Republic of China and Pa ragraph 151(b) of Report of the Working Party on
the Accession of China, the Government of Japan wish es to notify the relevant Articles in the Cabinet
Order Relating to Anti-Dumping Duty and the Guidelin es for Procedures Relating to Countervailing and
Anti-Dumping Duties, which are amended.  The amendment was published on 31 March and
17 May 2002 respectively.
[Provisional Translation]
• Cabinet Order Relating to Anti-Dumping  Duty (Cabinet Order No. 416, December 1994,
amended by the Cabinet Order No.113, March 2002)
• The Guidelines for Procedures Relating to Countervailing and Anti-dumping Duties
I. CABINET ORDER RELATING TO ANTI-DUMPING DUTY
Article 2
Following paragraph is inserted after paragraph 2 of this Article.  This paragraph becomes
paragraph 3 and former paragraph 3 becomes paragraph 4.
3. Notwithstanding the provisions of the precedin g paragraph, in the case where the provisions of
paragraph 1 of Article 8 of the Custom Tariff Law is applied to a specified imported product of Chinese
origin (excluding any product produced in the terr itory of Hong Kong, China and Macao, China this
hereinafter shall be applied in this paragraph and Article 10bis), the prices in the subparagraph 4 ofparagraph 1
1 may be used only in the case where the producers of the said imported product cannot
show clearly that there is a fact that the market  economy conditions regarding production and sale of the
like product of the said imported product prevail in the Chinese industry producing the said like product
(in Article 10bis referred to as "a fact that the market economy conditions regarding production and sale
of a specified Chinese product prevail").
Article 8
The phrase “and the first sentence of paragraph 1 of Article 10bis” is inserted after the phrase
“the first sentence of paragraph 1 of Article 10”  in subparagraph 7 of paragraph 1 of Article 8.
Article 10
Article 10bis is inserted after Article 10.(Presentation of Evidence, etc. by producers of  a specified imported product of Chinese origin)
Article 10bis
1. here an investigation on a specified imported product of Chinese origin is initiated, the
producers of the said imported product (hereinafter in th is Article, referred simply to as “the producers”)
may present to the Minister of Finance any evidence in  writing or orally with regard to a fact that the
market economy conditions regarding production and sa le of a specified Chinese product prevail within
the term under paragraph 1 of Article 8 informed or made known to the public in accordance with
subparagraph 7 of paragraph 1 of the said Article.  In this case, any person who intends to submit
evidence in writing or orally present them, shall subm it a writing as to the fact to be identified by such
                                                     
1  See Page 41 of G/ADP/N/1/JPN/2.G/ADP/N/1/JPN/2/Suppl.3
G/SCM/N/1/JPN/2/Suppl.3
Page 3
evidence in writing or orally presented and a request  for confidential treatment, if necessary, of such
evidences with the reason therefore.
2. The Minister of Finance may, as it is found necessary during the investigation under the
provision of the first sentence of the preceding pa ragraph, request the producers to present  evidence in
writing or orally with regard to a fact that the market economy conditions regarding production and sale
of a specified Chinese product prevail.  In this  case, any person who intend to submit evidences in
writing or orally present them, shall submit a request  for confidential treatment, if necessary, of such
evidence with the reason therefore.
3. The Minister of Finance shall, where a request to present evidence orally is made by producers
in accordance with the provision of the first senten ce of paragraph 1 or the Minister requests producers
to present evidence orally in acco rdance with the provision of the first sentence of the preceding
paragraph, inform in writing such producers of the date and time, place and other necessary matters for
presenting evidence.
4. The provision of paragraphs 6 to 10 of Article 7 shall apply mutatis mutandis  to evidence in
writing or orally presented in accordance with the provision of the first sentence of paragraph 1 or the
first sentence of paragraph 2.
Article 11
In paragraph 1 of Article 11, the phrase “first sentence of paragraph 1 or the first sentence of
paragraph 2 of the preceding Article” is amended to th e phrases “first sentence of paragraph 1 or first
sentence of paragraph 2 of the Article 10 or first sentence of paragraph 1 or the first sentence of
paragraph 2 of the preceding Article".  The phrase “(including the case where those provisions are
applied mutatis mutandis  in paragraph 4 of the preceding Article) “ is amended to the phrase “(including
the case where those provisions are applied mutatis mutandis  in paragraph 4 of Article 10 and
paragraph 4 of the preceding Article)".
II. THE GUIDELINES FOR PROCEDURES RELATING TO COUNTERVAILING AND
ANTI-DUMPING DUTIES
3. Difference in Conditions Affecting Price Comparison
The phrase “Cabinet Order Relating to Anti-Dumping Duty: Article 2, paragraph 3” is
amended to “Cabinet Order Relating to Anti-Dumping Duty: Article 2, paragraph 4".  The phrase “as
provided for in paragraph 3 of Article 2 of the Cabinet Order Relating to Anti-Dumping Duty” is
amended to “as provided for in paragraph 4 of Article 2 of the Cabinet Order Relating to Anti-Dumping Duty”.
5. Application, etc.
The phrase “Article 10bis, paragraphs 1 and 2” is inserted after “Article 10, paragraphs 1 and
2”.  The phrase “paragraph 1 or 2 of Article 10 of the Cabinet Order Relating to Anti-Dumping Duty”
is amended to “paragraph 1 or 2 of Article 10, or paragraph 1 or 2 of Article 10bis of the Cabinet
Order Relating to Anti-Dumping Duty”.
6. Initiation of Investigation, etc.
The phrase “except for paragraph 8 hereunder” is amended to “except for paragraph 9
hereunder".G/ADP/N/1/JPN/2/Suppl.3
G/SCM/N/1/JPN/2/Suppl.3
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7. Sending a Questionnaire
The phrase “, Article 10bis, paragraphs 1 and 2” is inserted after the phrase “Cabinet Order
Relating to Anti-Dumping Duty: Article 10, paragraphs 1 and 2;”.  The phrase “or paragraph 2 of
Article 10bis” is inserted after “paragraph 2 of Article 7 of the Cabinet Order Relating to
Countervailing Duty or paragraph 2 of Article 10 of the Cabinet Order Relating to Anti-Dumping
Duty”.
New Paragraph 3
The following paragraph is added after "paragraph 2”.2
3．A fact that the market economy conditions rega rding production and sale of a specified Chinese
product prevail.
(Cabinet Order Relating to Anti-Dumping Duty: Article 2, Paragraph 3; Article 10bis, paragraphs 1 to
4)
(1) The phrase “a fact that the market economy conditions regarding production and sale of a
specified Chinese product prevail”, which producers of the specified product in Chinese origin(excluding those of Hong Kong and Macao) shall clearly show as provided in paragraph 3 of
Article 2 of Cabinet Order Relating to Anti-Dumping Duty, contains those facts described
below".
(i) a fact that decisions by producers regarding prices, costs, production, sales and
investment are made based on market ec onomy principles, and without significant
government interference in this regard (the term "government" means the central
government, local governments or other p ublic organizations of the People's Republic
of China.  It shall apply to that in subparagraph 4),
(ii) a fact that costs of major inputs (such as raw materials) reflect market prices,
(iii) a fact that wage rates are determined by free negotiations between labour and
management,
(iv) a fact that means of production are not owned nor controlled by government,
(v) other facts as the Minister of Finance considers it appropriate for the interpretation of
the phrase "a fact that the market economy conditions regarding production and sale of
a specified Chinese product prevail", and notified to the Chinese pr oducers on
initiation of an investigation.
(2) It shall be noted that paragraph 3 of Article 2 and Article 10bis of Cabinet Order Relating to
Anti-Dumping Duty shall be effective until 10 December, 2016 pursuant to conditions
provided in Section 15 (d) of Protocol on The Accession of The People’s Republic of China.
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2 The numbers of following paragraphs are adjusted  according to the insertion of new paragraph 3.
(e.g., The former paragraph 3 becomes paragraph 4.)