G/ADP/W/497  
 
27 April 2017  
(17-2302) Page: 1/2 
Committee on Anti -Dumping Practices  Original: English  
 
EUROPEAN UNION – DRAFT AMENDMENTS TO THE BASIC ANTI -DUMPING REGULATION 
CONCERNING METHODOLO GIES OF NORMAL VALUE  DETERMINATION   
QUESTION S POSED BY THE RUSSIAN FEDERATI ON REGARDING  THE PROPOSAL FOR THE EU  
BASIC ANTI -DUMPING REGULATION C ONCERNING DETERMINAT ION OF NORMAL VALUE  
The following communication, dated 26 April 2017, is being circulated at the request of the 
Delegation of the Russian Federation . 
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The Russian Federation kindly asks the European Union to provide responses to the followin g 
questions concerning the Proposal for the EU Basic Anti -Dumping Regulation1 (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 determinati on. 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 WTO, 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 
are WTO M embers. 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 Proposal the re 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 production and sale 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 provisions of  the WTO case law that allow the use of methodologies envisaged by the 
Proposal.  
                                                
1 Proposal for Regulation (EU) 2016/10 36 on protection against dumped imports from counties not 
members of the European Union 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/497  
 
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  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 envisage d 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 enabling th e 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?  
 
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