WORLD TRADE  
ORGANIZATION  TN/RL/W/221 
12 March 2008 
 (08-1093) 
Negotiating Group on Rules Original:   English 
   
DE MINIMIS  MARGINS OF DUMPING 
 
Communication from Hong Kong, China;  Japan;  Norway;  Switzerland;  and 
 
the Separate Customs Territory of  Taiwan, Penghu, Kinmen and Matsu  
 
  The following communication, dated 10 March 2008, is being circulated at the request of the Delegations of Hong Kong, China;  Japan;  No rway;  Switzerland;  and the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu.   
 
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  The Delegations of Hong Kong, China;  Japan ;  Norway;  Switzerland;  and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen  and Matsu present this Working Document 
concerning the issue of "De Minimis" under th e Anti-Dumping Agreement (ADA).  This paper 
analyses the Rules Chair's text (TN/RL/W/213) on this  issue as a contribution to the discussions in the 
Negotiating Group.  It includes alternatives to the Ch air's text.  This submission is without prejudice 
to the views we may have on other parts of the text.  We reserve the right to modify or refine this 
document, or co-sponsor it with other Members at a later stage.   
 TN/RL/W/221 
Page 2  
 
  I. INTRODUCTION 
 We listened carefully to the discussion in the Negotiating Group in December 2007, January 
and February 2008.  We recognized that the Chair's text failed to address the issue of de minimis  
margin of dumping.  As previously explained
1, the current two per cent de minimis  level in Article 5.8 
of the ADA is insufficient to address various s hortcomings inherent in the AD regime.   
 II. DISCUSSION 
1. De minimis  margin of dumping in original investigations 
 The AD regime has the following shortcomings:   
• Exporters and producers cannot know at the time of individual export transactions 
whether they are likely to be found dumping in subsequent AD investigations and reviews, which determine the costs, sa les prices and margins of dumping on an ex-post  
basis.   
• Small differences in the net prices between two markets are common, depending 
especially on various factors that are not  necessarily subject to adjustment under 
the ADA, such as a company's relationship with its customers, product perceptions and other intangible market conditions.  The imposition of AD duties when a dumping margin is only 2 per cent risks hindering normal and healthy competition among companies.   
• A margin of error is inevitable in any dumpi ng margin calculation by authorities, even if 
authorities try to make the dumping margin calculation as accurate as possible.   
 
 The current 2 per cent de minimis  margin of dumping in Article 5.8 is not sufficient to remedy 
these shortcomings.  A higher de minimis margin of 5 per cent would, in contrast, serve to mitigate 
these shortcomings.
2  A 5 per cent de minimis  margin would help to avoid situations where dumping 
margins are created due to normal price variations or calculation errors;  and would facilitate efforts 
by exporters to ensure that their export transactions  are above normal value;  and would also enhance 
market competition as well as reduce administrative cost.   
 
2. De minimis  margin of dumping in reviews 
 Further, the current ADA has no provisions setting forth clear rules on the de minimis  margin 
of dumping applicable to reviews under Articles 9.3, 9.5, and 11.3  The shortcomings inherent in 
the AD regime and margin calculations are the same bot h in original investigations and in reviews.  
Indeed, there is no justification that an exporter who receives a de minimis  margin during an 
investigation is not subject to AD duties, whereas another exporter who receives an identical dumping 
margin in a review is subject to AD duties.  The lack of explicit rules on reviews could lead to 
application of rules, procedures, and methodologies in reviews that differ substantially from those in 
                                                      
1 See TN/RL/GEN/30/Rev.1, circulated as a fo rmal document on 14 February 2005.  See also 
TN/RL/GEN/75, submitted by Chile;  TN/RL/GEN/68, submit ted by the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu.   
2 Cosponsors of TN/RL/GEN/30/Rev.1 proposed [X] per cent de minimis  margin.  This paper has 
developed a concrete number, i.e. 5 per cent de minimis  margin.  We are ready to  further elaborate on the 
appropriate level of de minimis  to be raised with a view to the developmental needs of developing Members, 
particularly LDCs, whose exports are particularly vulnerable to the imposition of AD measures by other 
Members.   
3 See TN/RL/GEN/44/Suppl.1, TN/RL/GEN/52, TN/RL/GEN/44 and TN/RL/GEN/10.  See also 
TN/RL/GEN/117, submitted by Brazil, 21 April 2006.  See also  TN/RL/GEN/93, submitted by EC suggesting 
the application of de minimis  rules to sunset reviews in the context of countervailing duty investigations.    TN/RL/W/221 
 Page 3 
 
 
  original investigations.  Rules on the de minimis  margin of dumping applicable to these reviews 
should be clarified.    
 Article 9.5 reviews, on the other hand, work as substitutes for the initial investigation for a 
"new shipper" that did not export during the period of the original investigation and that is not related 
to any of the exporters or producers subject to AD measures.  Therefore, the de minimis  provision of 
Article 5.8 should be applicable to reviews under Article 9.5.   
 
 As the Chair invited the Members' view for a balanced text, and this negotiation is aimed at 
improving the disciplines, we propose the amendments set forth in Section III below, with respect to 
the de minimis  margin of dumping.   
 
III. PROPOSED AMENDMENTS TO CHAIR'S TEXT 
We therefore, propose that the Chair's text be amended as follows:   
 
5.8 …  There shall be immediate termination in cases where the authorities 
determine that the margin of dumping is de minimis , or that the volume of 
dumped imports, actual or potential, or the injury, is negligible.  The margin of dumping shall be considered to be de minimis  if this margin is less than 2
 
[5] per cent, expressed as a percentage of the export price.  … 
 9.3.x  For the purpose of this paragraph, de minimis  margins of dumping as defined 
in paragraph 8 of Article 5 shall be treated as zero margins of dumping.  
 
9.5.x   The provision of para graph 8 of Article 5 regarding de minimis  margins of 
dumping shall apply to reviews ca rried out under this paragraph.  
 11.x For the purpose of this Article, de minimis  margins of dumping as defined in 
paragraph 8 of Article 5 shall be treated as zero margins of dumping.  
 
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