WORLD TRADE  
ORGANIZATION  G/ADP/N/1/JPN/2/Suppl.5 
G/SCM/N/1/JPN/2/Suppl.5 7 June 2007 
 
(07-2377) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS 
UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
JAPAN 
 
Supplement  
   The following communication, dated 29 May 2007, is being circulated at the request of the 
Delegation of Japan. 
 
_______________ 
 
  Pursuant to Article 18.5 of the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade (Anti-dumping Agreem ent) and Paragraph 255(c) of the Report of 
the Working Party on the Accession of Viet Na m (WT/ACC/VNM/48), the Government of Japan 
wishes to notify the Committee on Anti-dumping Practices of the amended provisions of (I) the Cabinet Order Relating to Anti-Dumping Duty an d (II) the Guidelines for Procedures Relating to 
Countervailing and Anti-Dumping Duties.  These amendments were published on 31 March 2007 and 
6 April 2007 respectively. 
 G/ADP/N/1/JPN/2/Suppl.5 
G/SCM/N/1/JPN/2/Suppl.5 Page 2 
 
 
  [Provisional translation] 
 
I. CABINET ORDER RELATING TO ANTI-DUMPING DUTY (CABINET ORDER 
NO. 416, DECEMBER 1994) 
Article 2 (paragraph 3)
1 and Article 10bis (title , paragraphs 1 and 2)2 were amended as follows.3   
 
1. Article 2 
(Normal Value) 
 
Article 2  
 3. Notwithstanding the provisions of the preceding paragraph, in the case where the provision of 
paragraph 1 of Article 8 of the Law is applied to a specified imported product of Chinese origin 
(hereinafter in this paragraph and in Article 10 bis, excluding any product produced in the territory of 
Hong Kong, China and Macao, China) or of Vi etnamese origin, the prices referred to in 
subparagraph (4) of paragraph 1
4 may be used only in the case where the producers of the said 
imported product cannot show clearly that there is  a fact that the market economy conditions 
regarding production and sale of the like product of the said imported product prevail in the industry 
of the country which the said imported product orig inates from and [the industry] which is producing 
the said like product (referred to in Article 10 bis as "a fact that the market economy conditions 
regarding production and sale of a specified product prevail"). 
 
2. Article 10 bis 
(Presentation of evidence, etc. by producers of a sp ecified imported product of Chinese or Vietnamese 
origin).   
 
Article 10 bis 
 1. Where an investigation on a specified impor ted product of Chinese or Vietnamese origin is 
initiated, the producers of the said imported product (her einafter in this Article, referred simply to as 
"the producers") may present to the Minister of Finance in writing or orally any evidence with regard 
to a fact that the market economy conditions rega rding production and sale of a specified product 
prevail, within the term under subpa ragraph (7) of paragraph 1 of Article  8, which is to be informed or 
made known to the public in accordance with paragra ph 1 of the said Article.  In this case, any person 
who intends to submit evidence in writing or to ora lly present it shall submit in writing as to the fact 
to be identified by such eviden ce and a request for confidential treatment, if necessary, of such 
evidence with the reasons therefore.   
 2. The Minister of Finance may, as it is found necessary during the investigation under the provision of the first sentence of the preceding para graph, request the producers to present evidence in 
writing or orally with regard to a fact that the market economy conditions regarding production and sale of a specified product prevail.  In this case,  any person who intends to submit evidence in writing 
                                                     
 
1 See G/ADP/N/JPN/2/Suppl.3, p.2. 
2 Ibid., pp.2-3. 
3 The following provisional translation contains some  technical corrections to the previously notified 
version.   
4 See G/ADP/N/1/JPN/2, p.49.  G/ADP/N/1/JPN/2/Suppl.5 
 G/SCM/N/1/JPN/2/Suppl.5  Page 3 
 
 
  or to orally present it shall submit a request for c onfidential treatment, if necessary, of such evidence 
with the reasons therefore.  
II. THE GUIDELINES FOR PROCEDURES RELATING TO COUNTERVAILING AND 
ANTI-DUMPING DUTIES 
Paragraph 3
5 was amended as follows.6   
 [Provisional translation]  
3. A fact that the market economy conditions regarding production and sale of a specified 
product prevail.  (Cabinet Order Relating to Anti-Dumping Duty:  Article 2, paragraph 3; Article 10 bis, paragraphs 1 
to 4).   
 
(1) The phrase "a fact that the market economy conditions regarding pr oduction and sale of a 
specified product prevail", which producers of the specified product of Chinese origin 
(excluding those of Hong Kong a nd Macao) or of Vietnamese origin shall clearly show as 
provided for in paragraph 3 of Article 2 of Cabinet Order Relating to Anti-Dumping Duty, 
contains those facts described below".   
 
 (i) a fact that decisions by producers regarding prices, costs, production, sales and 
investment are made based on market economy principles, and without significant government interference in this  regard (the term "governme nt," herein and in (iv) 
below, means the central government, local governments or other public 
organizations of the country of origin  of the imported product concerned);   
 
 (ii) a fact that costs of major inputs (such as raw materials) reflect market prices;   
  (iii) a fact that wage rates are determ ined by free negotiations between labour and 
management;   
  (iv) a fact that means of production are not owned nor controlled by government;   
 
 (v) other facts as the Minister of Finance c onsiders it appropriate for the interpretation of 
the phrase "a fact that the market econom y conditions regarding production and sale 
of a specified product prevail", and notif ied to the producers on initiation of an 
investigation.   
 
(2) It shall be noted that paragraph 3 of Article 2 and Article 10 bis of Cabinet Order Relating to 
Anti-Dumping Duty shall be effective until 10 December 2016 with regard to specified 
products of Chinese origin, pursuant to the c onditions provided for in Section 15(d) of 
Protocol on the Accession of the People’s Re public of China, and until 31 December 2018 
with regard to specified products of Vietname se origin, pursuant to the conditions provided 
for in Article 2 of Protocol on the Accession of  the Socialist Republic of Viet Nam, and 
paragraphs 255(d) and 527 of the Report of the Working Party on the Accession of Viet Nam.   
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5 See G/ADP/N/1/JPN/2/Suppl.3, p.4.   
6 The following provisional translation contains some  technical corrections to the previously notified 
version.