G/ADP/Q1/TPKM/8  
G/SCM/Q1/TPKM/8  
 
22 October 201 8 
(18-6564) Page: 1/3 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  Original: English  
 
NOTIFICATION OF LAWS  AND REGULATIONS  
UNDER ARTICLE S 18.5 AND 32.6 OF THE AGREEMENT S 
REPLIES TO QUESTION S POSED BY THE UNITED STATES1 REGARDING THE  
NOTIFICATION OF THE SEPARATE CUSTOMS TER RITORY OF TAIWAN,  
PENGHU, KINMEN AND M ATSU2 
The followi ng communication, dated 19 October 2018, is being circulated at the reques t of the 
Delegation of the Separate Customs Territory o f Taiwan, Penghu, Kinmen And Matsu.  
 
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Question 1  
 
Amended Article 9, paragraph 2 of the Amended Regulations states that "any unknown 
foreign producer, exporter and domestic importer may, within 20 days from the next day 
of the public notice of the initiation of the investigat ion, express to the MOF its identity 
and willingness to be involved in the investigation in writing" . If an unknown 
producer/exporter and/or domestic importer misses this 20 -day deadline, but later 
becomes aware of the investigation and wishes to participa te, would the government of 
Chinese Taipei allow such party to par ticipate in the investigation? If not, what other 
venues (if any) would interested parties have to defend their  interests?  
 
Reply  
 
If an unknown producer/exporter and/or domestic importer m isses this 20 -day deadline, they 
would not be allowed by the authorities to participate in the investigation. They may file a lawsuit 
to the court requesting not to be involved in the investigation after the MOF issues the public 
notice of imposing anti -dumping duties.  
 
Question 2  
 
Article 15 -1 of the Amended Regulations states that if the Applicant submits a request to 
withdraw the case, but the Commission "deems it necessary to proceed with the 
investigation" the investigating authority may continue the investigation ex -officio. 
Please explain whether, in such instances, the administering authority would be 
required to provide all interested parties (including the Applicant and foreign 
respondents) with any additional evidence or explanation explaining why it has chosen 
to continue the investigation without the support of the Applicant.  
 
Reply  
 
If the Applicant submits a request to withdraw the case while the investigating authority finds 
additional evidence of dumping, injury and a causal link, the Commission might "deem it necessary 
to proceed with the investigation". In such an instance, the i nvestigating authority would continue 
                                                
1 G/ADP/Q1/TPKM/7 -G/SCM/Q1/TPKM/7(dated 3 October 2018).  
2 G/ADP/N/1/TPKM/1/Suppl.2 -G/SCM/N/1/TPKM/1/Suppl.2 (dated 24 August 2018). For the sake of 
efficiency, the United States suggests that committee review for these questions be conducted in the 
Committee on Anti -Dumping Practices.  G/ADP/Q1/TPKM/8 • G/SCM/Q1/TPKM/8  
 
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  the investigation ex-officio . The preliminary or final determination report would describe the 
additional evidence  and explain the reasons why the authority has decided to continue the 
investigation . 
 
Question 3  
 
Amend ed Article 23 states that parties wishing to submit an application for an 
undertaking must commit to implement the terms and conditions as follows:  
 
[…] 
(5)  Acceptance of on -the-spot verification to be conducted by competent 
authority, when necessary,  
(6)  Commitment of not taking any compensatory arrangement or in any 
other form to affect results of the undertaking, and  
(7)  Provision of other requirements that competent authority deems 
necessary.  
• Regarding condition (5), please explain whether any adv ance notification will be 
provided to the interested parties with regard to the on -the-spot verification. If so, 
who will be notified and how much advance notice will be given? Will the 
interested parties be provided with an outline of the items expected t o be covered 
during the on -the-spot verification?  
 
• Regarding condition (6), please clarify what could constitute a "compensatory 
arrangement".  
 
• Regarding condition (7), please list or provide examples of the "other 
requirements" the competent authority ma y require from participants of the 
undertaking.  
 
Reply  
 
With regard to condition (5), the advance notification relating to on -the-spot verification will be 
provided to the undertaking companies and the representatives of the government of the country 
in qu estion two weeks prior to the verification. An outline of the items will be included in the 
notification.  
 
With regard to  condition (6), the cash or other forms of discount or compensation, such as sales 
commission or cash rebate given to the importer over a certain period will be regarded as a 
compensatory arrangement after the products under investigation have been exporte d to the 
importer.  
 
With regard to  condition (7), "other requirements" may include: (a) that the undertaking company 
may not export the subject merchandise and non -subject merchandise to the same importers in 
order to avoid price cross -compensation; (b) that the competent authority regular ly adjusts the 
price of the undertaking; and (c) that the disposal be carried out against the breach of the 
undertaking by the competent authority.  
 
Question 4  
 
Article 24 of the Amended Regulations states that if the Commission determines there 
are too ma ny actual or potential exporters, MOF may reject an application for an 
undertaking. Please explain whether price undertakings are exporter specific. Also, do 
parties which request an undertaking need to represent a certain percentage of the total 
exports t o Chinese Taipei? If so, what is this threshold? Is the Applicant or domestic 
industry consulted by the administering authority regarding the decision to accept a 
price undertaking or the terms of such an undertaking ? G/ADP/Q1/TPKM/8 • G/SCM/Q1/TPKM/8  
 
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  Reply  
 
The competent authority only ac cepts the undertaking application submitted by the 
producers/ exporters.  Price undertaking will be offered only to producers or exporters who have 
fully responded to the questionnaires and been granted individual dumping or countervailing duty 
rates. There is no threshold for filing an undertaking application and such applicants are normally 
the major foreign suppliers. According to paragraph 4 of Article 23, the investigating authority 
consults the applicant or domestic industry regarding the decision wheth er or not to accept a price 
undertaking.  
 
Question 5  
 
Regarding Article 35 -1, Chinese Taipei states that foreign producers or exporters may 
apply for a new shipper investigation if these producers or exporters have exported a 
"significant quantity" of the product under investigation following the original period of 
investigation. Please explain what is meant by a "significant quantity" . Is there a 
specific threshold?  
 
Reply  
 
"Significant quantity" means that the foreign producers or exporters should export a certain 
amount of products, which is sufficient to form the basis for determining the export price. The 
quantity should be a representative one, which will be determined by factors such as the type of 
industry, the business model, the terms of transactio n, the product characteristics, and the annual 
import volume of the subject merchandise.  
 
To date, however, no new shipper review applications have been received.  
 
 
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