G/ADP/Q1/MNE/2  
G/SCM/Q1/MNE/2  
G/SG/Q1/MNE/2  
 
24 April 2014  
(14-2500)  Page: 1/7  
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Committee on Safeguards 
 Original: English  
 
 NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGREEMENTS  
REPLIES TO QUESTIONS POSED BY THE UNITED STATES1 
REGARDING THE NOTIFICATION OF MONTENEGRO2 
The following communication, dated 22 April 2014, is being circulated at the request of the 
Delegation of Montenegro.  
_______________ 
 
 Montenegro thanks the United States for the questions it raised in connection to the Notification of 
Laws and Regulations under Articles 18.5, 32.6, and 12.6 of the Agreements and is pleased to take 
this opportunity to clarify certain issues. In this connection, Montenegro wishes to refer to the Decree for the Implementation of the Law on Fo reign Trade ("Off. Gazette of RoM" No. 52/04, 
44/07), which is also relevant in this respect.
3 
 
General 
 
Question 1 
 Please explain how Montenegro plans to pr ovide reasonable public notice to all 
interested parties for public hearings or other appropriate means in which importers, 
exporters and other interested parties could present evidence and their views, including 
the opportunity to respond to the presenta tions of other parties. Please indicate 
whether notices will be published in the "O fficial Gazette" of Montenegro and/or in 
another publication.  Reply 
 Montenegro has not conducted investigations so far, nor did it use trade remedies. In potential future cases, the public would be informed about the procedure and findings in accordance with 
Articles 37.6, 39.2 and 45 of the Law on Foreign Trade ("Off. Gazette of RoM", No. 28/2004, 
37/2007) and 22, 26.2, 27 and 31.b) of the Decree  for the Implementation of the Law on Foreign 
Trade ("Off. Gazette of RoM" No. 52/04, 44/07).  
 
Also, as laid down in Article 23 of the Decree of the Government of Montenegro (Off. Gazette No. 80/2008) among others, acts, decrees and decisions are published in the "Official Gazette of Montenegro". According to Article 4 of the same Decree, the Government’s work is public, and 
information and data on the Government’s work are published on the Government’s webpage. 
 
                                               
1 G/ADP/Q1/MNE/1-G/SCM/Q1/MNE/1-G/SG/Q1/MNE/1.   
2 G/ADP/N/1/MNE/1-G/SCM/N/1/MNE/1–G/SG/N/1/MNE/1 (dated 26 September 2013). 
3 The relevant portions of the Decree shall be no tified to the WTO and circulated in document 
G/ADP/N/1/MNE/1/Suppl.1–G/SCM/N/1/MNE/1/Suppl.1–G/SG/N/1/MNE/1/Suppl.1, in due course.   G/ADP/Q1/MNE/2 • G/SCM/Q1/MNE/2 • G/SG/Q1/MNE/2 
 
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  Question 2 
 Please indicate whether Montenegro's compet ent authority will maintain a docket file 
and public reading room throug h which interested parties may inspect, copy, or access 
electronically the public version of the petition and the documents submitted by 
interested parties in the co urse of the investigation. 
 
Reply 
 
Yes, in accordance with Articles 27 and 31.b) De cree for the implementation of the Law on Foreign 
Trade.   
 
Question 3  
Articles 7(3) and 7(4) of the Foreign Trad e Law ("Law") state that an appeal may be 
lodged against a decision by the Competent Au thority and that, subsequently, a right of 
judicial review exists against a decision made on appeal. Could Montenegro please 
clarify if these opportunities for appeal and judicial review exist for interested parties 
and, if so, what the specific procedur es and timelines are that govern each 
appeal/judicial review proceeding, and when will Montenegro notify these procedures to 
the applicable WTO Committees? Also, please advise as to which entity appeals and 
judicial reviews shou ld be submitted. 
 Reply 
 Yes, it exists. Interested parties have the opportunity to lodge an appeal, pursuant to Articles 219.2 of the Law on General Administrative Procedure ("Off. Gazette of RoM", No. 60/03 
as of 28.10.2003) which stipulates that: "An appeal may also be lodged by a person who was not 
given the opportunity to participate in the procedur e of first instance provided that the decision 
affects his or her rights and legal interests (interested person)" and the opportunity to instigate the administrative dispute, in accordance with Article 3.1 Law on Administrative Dispute ("Off. 
Gazette of RoM", No 60/03 as of 21.10.2003 ), defining that: "Any natural or legal person may 
instigate the administrative dispute proceedings if they believe that an administrative or other document has infringed upon any of their rights or interests that are based in law". 
 
The Law on General Administrative Procedure ("Off. Gazette of RoM", No. 60/03 as of 28.10.2003) defines special procedures: summary procedure (Article 133) and investigative procedure (134 and 
135), conducted by an official, who administers the procedure, prior to passing a decision, for the 
purpose of ascertainment of decisive facts and circumstances of relevance for explanation of 
administrative matters or for the purpose of enabling parties to exercise and protect their rights and legal interests. 
 
The Law on General Administrative Procedure ("O ff. Gazette of RoM", No. 60/03 as of 28.10.2003 
and Off. Gazette of RoM", No. 32/011 as of 01.07.2011) defines special deadlines:  
 
 for lodging an appeal (Article 224, lays down a deadline of 15 days for lodging an appeal, 
from the date of delivery of decision, unless otherwise stipulated by the law). 
 
 for submission of a decision to the competent authority (Articles 233.1 and 243 sets out a 
deadline of 8 days, from the date the documents are submitted). 
 
 for lodging an appeal on decision (Articles 237.2 and 241.1 stipulates a deadline of 20 days 
from the date the documents are submitted). 
 
The Law on administrative dispute ("Off. Gazette of RoM", No. 60/03 as of 21.10.2003) stipulates 
deadlines for:  
 filing a complaint (Article 16.1 laying down a deadline of 30 days, after the document was 
submitted to the party. 
 
 Supply of a response on the complaint (Article 27.2, laying down time period for giving a 
response to the complaint which shall not be less than 8 days or more than 30 days). G/ADP/Q1/MNE/2 • G/SCM/Q1/MNE/2 • G/SG/Q1/MNE/2 
 
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Pursuant to Article 228.1 of the Law on General Administrative Procedure ("Off. Gazette of RoM", No. 60/03 as of 28.10.2003) the appeal shall be submitted by hand or mail to the authority that 
issued the first instance decision, and the comp laint, pursuant to Article 17.1 of the Law on 
Administrative Dispute ("Off. Gazette of RoM", No . 60/03 od 21.10.2003) shall be submitted to the 
Administrative Court, directly or sent by mail, while the day when the complaint is dispatched shall be deemed to be the day of its submission to the court.  
 
Question 4  
 Article 8 of the Law addresses the treatment of "confidential information" but does not 
indicate whether parties providing such in formation may be requested to furnish non-
confidential summaries thereof. Please expl ain whether Montenegro plans to ask parties 
to furnish such non-confidential summaries. 
 
Reply 
 
Yes, in accordance with Article 31. 2 of the De cree for the Implementation of the Law on Foreign 
Trade, in terms of which parties to the investigation proceedings providing confidential information must furnish non-confidential summary thereof, containing sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence.  
 
Question 5  
Article 34(2) of the Law states that in esta blishing procedures and terms pertaining to 
implementation of trade remedies, Montenegro shall "tak[e] into consideration provisions of relevant WTO agreements and EU legislation." Please explain the meaning 
of this provision. If the Law and the Decree for the Implementation of Law on Foreign 
Trade ("Decree") are silent on a matter that the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 ("AD Agreement"), Agreement on Subsidies and Countervailin g Measures ("SCM Agreement"), or 
Agreement on Safeguards ("Safeguards Agreem ent") addresses, do the provisions of the 
pertinent WTO agreement control?  
Reply 
 
Yes. Article 9 of the Constitution of Montenegro pr escribes that ratified and published international 
agreements and generally accepted rules of international law shall make an integral part of the 
internal legal order, shall have the supremacy over  the national legislation and shall apply directly 
when they regulate relations differently than the national legislation. Accordingly, there is no obstacle for a direct application of the Agreement.  
 
Anti-Dumping and Countervailing Duties 
 
Question 6  
 Article 37(3) of the Law states that related party producers "must not be treated as part 
of a domestic industry." Does this mean  that related party producers are always 
excluded from the domestic industry both for purposes of determining standing under 
Article 37(2) of the Law and for determining injury for purposes of Article 36(1) of the 
Law? 
 
Reply 
 
Pursuant to Article 37(3) of the Law on Foreign Trade related party producers are not always 
excluded from the domestic industry. Provision on related producers from Article 37 paragraph (3) of the Law on Foreign Trade of Montenegro is based on Article 4.1.(i) of the Agreement on 
Implementation of Article VI of the Gene ral Agreement on Tariffs and Trade 1994. 
 G/ADP/Q1/MNE/2 • G/SCM/Q1/MNE/2 • G/SG/Q1/MNE/2 
 
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  Question 7 
 Article 19 of the Decree provides criteria for the examination of the impact of dumped or 
subsidized imports on the domestic indust ry. By contrast, Article 36(1) of the Law 
contains provisions requiring the authority to examine the volume and price effects of 
dumped or subsidized imports, but does not expressly require examination of impact. In 
light of this, please explain what use th e authority makes of the impact findings 
specified by Article 19 of the Decree. 
 Reply 
 
Article 36(1) of the Law on Foreign Trade sets down conditions that must be fulfilled so that the 
Government can levy an anti-dumping or countervailing duty. The third condition, stated in Article 36(1)(3) of the Law, relates to impact of dumping (subsidized) import on a particular 
industry. Article 19 of the Decree defines factors th at are taken into consideration when examining 
this impact.    
Question 8 
 Is Article 20(2) of the Decree applicable to determinations of material injury, threat of 
material injury, or both? 
 
a. If it is intended to be applicable to both, please explain how factor (2), 
pertaining to available capacity or expe cted increases in capacity, is pertinent 
to an analysis of current material injury. 
b. If it is intended to be applicable to  threat, please explain how Montenegro 
implements the requirements of Article 3.7(iv) of the AD Agreement and 
Article 15.7(v) of the SCM Agreement requiring an authority to consider 
inventories of the product under investig ation in any analysis of threat of 
material injury. 
Reply 
 
Article 20(2) of the Decree sets out conditions for determining a threat of materijal injury. Conditions are defined in accordance with Article 3.7 of the AD Agreement and Article 15.7 of the 
SCM Agreement, and one stated in Article 20(2)(4) refers to inventories of the product.  
 Montenegro so far has not conducted procedures, or ex officio, to determine a threat of material 
injury in accordance with the submitted request. In case Montenegro is put into position to 
determine a threat of material injury, the proced ure will be conducted in accordance with the 
relevant WTO Agreements, when factors from Article 20(2) of the Decree will be considered as total, and none of the factors could be decisive for adopting a decision.  
 
Question 9  
Neither the Law nor the Decree addresses cumu lation. If imports from more than one 
country are simultaneously subject to  antidumping or countervailing duty 
investigations, does Montenegro conduct a cumu lative analysis of such imports? If so, 
how does Montenegro assure that any such analysis conforms to the requirements of 
Article 3.3 of the AD Agreement and Article 15.3 of the SCM Agreement?  Reply 
 The Montenegrin Law on Foreign Trade does not adress the matter of cumulation. If imports from more than one country are simultaneously su bject to antidumping or countervailing duty 
investigations, Montenegro would apply relevant provisions of the AD and SCM Agreements.  
 Question 10 
 
Article 32 of the Decree states that the auth ority shall inform interested parties of the 
essential facts under consideration not later than 15 days before the final dumping or G/ADP/Q1/MNE/2 • G/SCM/Q1/MNE/2 • G/SG/Q1/MNE/2 
 
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  subsidy determination. By contrast, Article 39(2) of the Law appears to suggest that 
disclosure of essential facts occur at least 30 days before the final dumping or subsidy 
determination. Which provision controls? Addi tionally, does the disclosure of essential 
facts concern facts pertinent to the injury de termination as well as facts pertinent to the 
dumping or subsidy determination? Please al so confirm that interested parties will have 
sufficient opportunity to comment on any essential facts disclosed and provide an 
expected timeline as to when such comment s would be due following disclosure to 
parties. 
 Reply 
 
Article 32 of the Decree for the Implementation of the Law on Foreign Trade and Article 39(2) of 
the Law on Foreign Trade define that the authority shall inform interested parties of the essential facts under consideration not later than 30 days before the final dumping or subsidy 
determination.  
 Information on essential facts relates to determining of injury, as well as facts related to dumping 
or subsidy determination. 
 We confirm that interested parties will have enough opportunities to give comments on essential facts submitted to them and that they will be  given the expected timelime for giving suh 
comments after being informed.  
 Question 11 
 
How does Montenegro implement the re quirements of Article 12.2.1 of the 
AD Agreement and Article 22.4 of the SCM Agreement concerning the contents of public 
notices of the imposition of provisional measures? 
 Reply 
 
Article 41 of the Law on Foreign Trade regulates th e possibility to apply provisional measures and 
to publish a notice of a decision on application of provision measures. Article 35 of the Decree on Implementation of the Law on Foreign Trade sets ou t the content of a public notice of application 
on measures, and it is in line with requirements  given in Article 12.2.1 of the AD Agreement and 
Article 22.4 of the SCM Agreement.   
Question 12 
 How does Montenegro implement the re quirements of Article 12.2.2 of the 
AD Agreement and Article 22.5 of the SCM Agreement concerning the contents of public 
notices of imposition of a definitive duty? 
 Reply 
 Article 40 of the Law on Foreign Trade regulates a possibility to apply definitive customs duties. 
Article 35 of the Decree for the Implementation of  the Law on Foreign Trade sets out the content 
of a public notice of application on measures, and it is harmonised with requirements given in 
Article 12.2.1 of the AD Agreement an d Article 22.4 of the SCM Agreement. 
 
Safeguards 
 Question 13  
In Article 2(12) of the Law, the term "Quantit ative restriction" is defined to include "the 
ban on export or import." In comparison, Ar ticle 46(2), when applied in the context of a 
safeguard measure, states that such a rest riction "shall not reduce the quantity of 
imports below the average level of imports in  three representative years preceding such 
imports." Please explain:  
a. How Montenegro would apply the two defi nitions in the case of a safeguard 
measure, including whether Montenegro would considering banning imports of G/ADP/Q1/MNE/2 • G/SCM/Q1/MNE/2 • G/SG/Q1/MNE/2 
 
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  a product if there were no imports in the three years that Montenegro 
considered to be "three years preceding such imports";  
b. How a quantitative restriction that provides for a "ban" on imports would be 
consistent with Article 5.1 of the Safegu ards Agreement, which provides that a 
measure "shall not reduce the quantity of  imports below the level of a recent 
period which shall be the average of im ports in the last three representative 
years for which statistics are available, unless clear justification is given that a 
different level is necessa ry to prevent or remedy  serious injury"; and  
c. How a ban would be consistent with the obligation in Article 5.1 of the 
Safeguards Agreements that a member apply safeguard measures "only to the 
extent necessary to prevent or remedy  serious injury and to facilitate 
adjustment". 
Reply 
 
Article 2(12) of the Law on Foreign Trade gives a general definition of the quantitative restriction. 
The definition is harmonised with Article XI 2(a)(b)(c) of GATT, in accordance with which it is possible to apply bans or restrictions on import or export. The Safequard Agreement does not 
envisage restrictions in terms of a ban, therefore the stated provision referring to the ban would 
not be applied in Montenegro in the procedures prescribed by Articles 44-50, but in accordance with Articles 14 and 15 of the Law on Foreign Trade.  
Accordingly, within its safeguard procedures (Article 44-50 of the Law on Foreign Trade) 
Montenegro would not apply restrictions as a ban (defined in Article 2(12) of the Law), but in accordance with Article 5 of the Safeguard Agreement.  
 
Safeguard measure would be applied to the extend which is necessary to prevent or remedy a serious injury and to facilitate adjusting.   
 
Question 14  In Article 2(13) of the Law, the term "quota " is defined to mean the share allocated to 
"certain person or group of persons (expor ters or importers)". The use of the term 
"person or group of persons" suggests th at Montenegro, in applying a safeguard 
measure, may intend to allocate shares to individual importing or exporting companies 
as opposed to WTO Members. Please explain how this definition is consistent with 
Article 5.2(a) of the Safeguards Agreement, which provides, when quotas are allocated, 
that they be "allocated among supplying countries". 
 
Reply 
 See the answer to the question 15. 
 
Question 15  
Article 17(1) of the Law provides for the a llocation of quotas and provides that the 
competent authority "shall allocate any quotas  on the basis of a public invitation to 
submit requests for allocation of quotas." Please identify the circumstances in which 
this authority might be used and, if it is inte nded to be used in the context of applying a 
safeguard measure, please explain how it is co nsistent with Article 5.2 of the Safeguards 
Agreement.  
Reply 
 
In case Montenegro decides to allocate a quota as a safeguard measure, the quota would be 
divided in accordance with Article 5 of the Safe guard Agreement. Article 17 of the Law on Foreign 
Trade stipulates a procedure of allocating quotas already divided between supplying countries to entities in Montenegro, as importers of such products.   
 G/ADP/Q1/MNE/2 • G/SCM/Q1/MNE/2 • G/SG/Q1/MNE/2 
 
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  Question 16 
 Article 41(1) of the Decree states that the competent authority must prepare a report, 
based on the facts and evidence obtained, "on the state of [the] domestic industry, 
especially with respect [to] whether the incr eased imports are causing serious injury or 
there is a threat thereof and proposal for possible imposition of safeguard measure." 
Article 41(2) states the report is to be su bmitted to "the government." Please explain 
how this article relates to the provisions in:  
 
a. Article 3.1 of the Safeguards Agreement, which requires that "[t]he competent 
authorities shall publish a report setti ng forth their findings and reasoned 
conclusions on all pertinent issues of fact and law"; and  
b. Article 4.2(c) of the Safeguards Agreement, which requires that "[t]he 
competent authorities shall publish prompt ly, in accordance with the provisions 
of Article 3, a detailed analysis of th e case under investigation as well as 
demonstration of the relevance of the fa ctors examined." Please also indicate 
when the public version of the report of the competent authority is likely to be 
made available to the interested partie s, including interested WTO Members. 
Reply 
 
In acordance with Article 45 of the Law on Foreign Trade the competent authority shall "initiate 
and conduct the investigation ..." ex officio, and the Decision on initiation of an investigation shall 
be published in the Official Gazette. Conducting of the investigation shall refer to all activities prescribed by Article 3.1 of the Agreement, such as release of a public notice for commencement 
of public hearings, organisation of public discu ssions, providing opportunities to pose questions 
and to respond, publication of an analysis under investigation with demonstration of the relevance of the factors examined.   
 
All stated procedures would be realised in accordan ce with the Law on Administrative Procedure.   
 Also, Article 41 of the Decree stipulates that th e competent authority shall prepare a Report on 
findings and conclusions of the investigation, which is harmonised with Article 3.1. of the 
Agreement. The Report would be published on the Ministry of Economy webpage and would be 
notified to the WTO Committee for safeguards pursuant to Article 12(a)(b) of the Agreement. 
 
 
__________