G/ADP/W/499  
 
23 Octobe r 2017 
(17-5706) Page: 1/2 
Committee on Anti -Dumping Practices  Original: English  
 
EUROPEAN UNION – DRAFT AMEND MENTS TO THE BASIC A NTI-DUMPING  
REGULAT ION CONCERNING METHO DOLOGIES OF  
NORMAL VALUE DETERMI NATION   
REPLY TO QUESTION S1 POSED BY THE RUSSIAN FEDERATION REGARDING  
THE PROPOSAL FOR THE EU  BASIC ANTI -DUMPING REGULATION  
CONCERNING DE TERMINATION OF NORMA L VALUE  
The following communication, dated 20 October 2017, is being circulated at the request of the 
delegation of the European Union . 
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The Russian Federation kindly asks the European Union to provide responses to the 
following questions concerning the Proposal for the EU Basic Anti -Dumping Regulation2 
(hereinafter – "Proposal").  
1. The text of the Proposal covers targeted amendments to the New Basic 
Anti-Dumping Regulation with respect to the mechanism of normal value 
determination. Please explain what are the reasons and intentions for changing 
the provisions of calculation of normal value.  
2. As it is stated in Recital (2) of the Proposal, "in view of developments with respect 
to certain countries that are Members of the WT O, it is appropriate that, for those 
countries normal value should be determined on the basis of paragraphs 1 to 6a of 
Article 2 of Regulation (EU) 2016/1036". Please clarify what countries and what 
developments this Recital refers to? Please also clarify,  whether this Recital refers 
only to the countries that are currently treated by the EU as non -market economy 
countries. In particular, whether the provisions of this Recital will be applied to 
any of the Member States of the Eurasian Economic Union that a re WTO Members. 
Should the Recital refer not only to the countries currently treated by the EU as 
non-market economy countries, please explain what other countries it refers to 
and what developments in them are meant.  
3. According to Article 6a(a) of the Prop osal there might be cases when "it is not 
appropriate to use domestic prices and costs in the exporting country due to the 
existence of significant distortions". Further below this Article provides for the 
circumstances where these "significant distortions " may be deemed to exist. 
Please clarify what criteria are going to be used in order to evaluate the 
"significance" of such "distortions"?  
4. As it follows from the Explanatory Memorandum to the Proposal, "[t]he 
circumstances prevailing in certain countries that are members of the WTO and the 
experience gathered from the case -law make it appropriate to amend the 
methodology used to determine the normal value and the dumping margin", which 
would allow to construct normal value on the basis of "costs of product ion and sale 
                                                
1 G/ADP/W/497.  
2 Proposal for Regulation (EU) 2016/1036 on protection against dumped imports from counties not 
members of the European Unio n and Regulation (EU) 2016/1037 on protection against subsidized imports from 
counties not members of the European Union as of 9 November 2016.  G/ADP/W/499  
 
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  in an appropriate representative country". Please clarify whether the case law 
referred to in this provision is the case law of EU judiciary system or the WTO case 
law? Should the latter be correct, please specify the cases and the exact provi sions 
of the WTO case law that allow the use of methodologies envisaged by the 
Proposal.  
5. According to the Explanatory Memorandum to the Proposal, the proposed 
methodology of normal value calculation "would allow the Commission to establish 
and measure the actual magnitude of dumping being practiced in normal market 
conditions absent distortions". Please explain the meaning of the notions "actual 
magnitude of dumping" and "normal market conditions absent distortions". Please 
describe the methodology that is envisaged by the Commission's drafters in order 
to evaluate "actual magnitude of dumping" and "normal market conditions absent 
distortions".  
6. As it is provided for in Article 6a(c) of the Proposal, the European Commission 
"may issue a report describing the specific situation concerning the criteria listed 
in point (b) in a certain country or a certain sector". Interested parties may "rely 
on the report and the evidence on which it is based".  
Please, explain:  
a. what is the purpose of introducing provisions ena bling the Commission to issue 
such a report;  
b. how would the Commission, should the amendments be adopted, ensure 
unbiased and accurate assessment of evidence provided by the interested 
parties based on the report?  
 
Reply  
On 9 November 2016, the European Co mmission adopted a proposal to make changes to the 
EU's basic anti -dumping legislation.  Following its adoption the proposal became subject to a 
legislative process in the EU which means an examination by the co -legislators i.e. the European 
Parliament and  the Council (comprising the EU Member States).  
On 3 October 2017, the negotiators of the European Parliament and the Council reached an 
agreement on the proposal adopted by the Commission to change the EU's anti -dumping 
legislation.  However, the legislat ive process is not finalised and therefore the proposed legislation 
remains a draft text and cannot enter into effect until the necessary steps are completed.  
When the changes to the EU's basic anti -dumping regulation are finalised in the legislative proc ess 
in the EU, the WTO Committees will be informed in line with the relevant notification requirements . 
 
 
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