. /.   WORLD TRADE  
ORGANIZATION  G/ADP/W/459 
5 October 2006 
 (06-4765) 
Committee on Anti-Dumping Practices Original:   English 
  
 
TRANSITIONAL REVIEW MECHANISM IN 
CONNECTION WITH PARAGRAPH 18 OF THE PROTOCOL 
ON THE ACCESSION OF THE PEOPLE’S REPUBLIC OF CHINA 
 
Questions from the UNITED STATES to CHINA
 
 
  The following  communication, dated 3 October 2006, is being circulated at the request of the Delegation of the United States.  
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Notifications 
 
1. During the 2005 transitional review conducte d in this Committee, the representative from 
China stated that the English version of the Provisions of the Supreme People’s Court on Certain 
Issues Concerning the Applicability of Laws in the Hearing and Handling of Anti-Dumping 
Administrative Cases  was being prepared for notification.  When will China notify this measure to 
this Committee, as required by Article 16.5 of the Agreement on Implementation of Article VI of the 
General Agreement on Tariffs and Tr ade 1994 (Anti-Dumping Agreement)? 
 
2. The United States understands th at China recently promulgated Regulations on Information 
Accession and Information Disclosu re in Industry Injury Investigations .  When does China intend to 
notify this measure to this Committee,  as required by Article 16.5 of the Anti-Dumping Agreement? 
  3. The United States understands that China recently promulgated Regulations on Responding to 
Anti-dumping Cases of Export Products.  When does China intend to notify this measure to this 
Committee, as required by Article 16.5 of the Anti-Dumping Agreement?  
BOFT Anti-Dumping Investigations 
 4. The United States continues to hear compla ints from interested parties in Chinese anti-
dumping proceedings about a lack of transparency re garding the facts being considered by the Bureau 
of Fair Trade (BOFT) of the Ministry of Commerce (MOFCOM) and a lack of adequate explanation of BOFT’s interpretation of those facts.  For exam ple, according to these parties, the disclosures of 
anti-dumping margin calculations in preliminary an d final determinations have not contained the 
necessary information needed in order to repr oduce certain calculations and identify specific 
adjustments that may have been made.    (a) Please describe the specific steps that have been taken by BOFT since last year’s transitional 
review before this Committee to ensure that di sclosures to interested parties provide greater 
transparency. 
 G/ADP/W/459 
Page 2  
 
  (b) Please provide a full explanation of all of the calculations used by BOFT in its methodology 
for comparing export price and normal value. 
 5. Please explain how China justifies BOFT’s pr actice of refusing to exclude respondents from 
anti-dumping measures when they receive de minimis rates in a completed anti-dumping 
investigation, taking into account Article 5.8 of  the Anti-Dumping Agreement and the Appellate 
Body’s report in Mexican Rice  issued on 29 November 2005 (WT/DS295/AB/R).  
 
IBII Injury Investigations 
 6. Please describe the specific means by which MOFCOM’s Investigation Bureau for Industry 
Injury (IBII) informs interested parties prior to the final determination of  all essential facts under 
consideration in a manner consistent with Artic le 6.9 of the Anti-Dumping Agreement, and as 
required by Article 20 of IBII’s Regulations on Information Accessi on and Information Disclosure in 
Industry Injury Investigations . 
 
7. Reports by interested parties continue to suggest that IBII does not regularly provide in a 
timely manner sufficiently detailed non-confidential  summaries of information submitted to IBII 
during anti-dumping investigations, as mandated in  Article 6.5 of the Anti-Dumping Agreement.  
Where non-confidential summaries have been provided by IBII, they have b een criticized as not 
containing sufficient detail to permit a reasonable understanding of the substance of the information 
submitted, as required by Article 6.5.1 of the Anti-Dumping Agreement.  What specific steps is IBII 
taking to address this issue in accordance with Articles 11 and 12 of its Regulations on Information 
Accession and Information Disclosu re in Industry Injury Investigations ? 
 
Customs 
 
8. During the 2005 transitional review before this Committee, the representative from China 
stated that if any problems arose in the implem entation of anti-dumping measures, MOFCOM and the 
General Administration of Customs would consult with each other.  It is the United States’ 
understanding that implementation problems have occurred during the past year.   
 
(a) Do any written procedures exist for handling problems that arise in the implementation of 
anti-dumping measures?  If so, please identify them. 
 (b) Please describe the steps that are taken to resolve implementation problems when different 
interpretations exist be tween MOFCOM and the Customs Administration. 
 
9. In recent anti-dumping determinations, BOFT has published a formula for calculating the 
amount of anti-dumping duty collected upon entry at the port for products subject to anti-dumping 
measures, i.e., Deposit Amount = (Duty Paid Price  x AD Deposit Rate)  x  (1 + import VAT rate).  It 
is the United States’ understanding that this form ula assesses the value added tax (VAT) on the anti-
dumping duty in addition to the entered value of the merchandise.  Please explain whether BOFT in 
fact instructs the Customs Administration to coll ect VAT on the anti-dumping duty and, if so, which 
provision of the Anti-Dumping Agreement allows for this action. 
 
10. Has any VAT assessed on anti-dumping duties, or any other duty collected in excess of the margin of dumping, ever been refunded by China following a request by an importer, as required by Article 9.3.2 of the Anti-Dumping Agreement?  Please explain.  
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