WORLD TRADE  
ORGANIZATION  G/ADP/AHG/W/170 
10 March 2005 
 (05-1008) 
Committee on Anti-Dumping Practices 
Working Group on Implementation Original:   English 
 
 
 
ARTICLE 6.7 – CONDUCT OF VERIFICATION 
 
Paper by Egypt  
 
 
 The following communication, dated 4 March 2005, is being circulated at the request of the 
Delegation of Egypt.  
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  Further to the decision of the Committee to examine additional topics for discussion as noted 
in document G/ADP/W/433, Egypt is pleased to submit the following paper as a contribution to discussions on Article 6.7 and Annex I of  the Anti-Dumping Agreement (ADA).  
 The Requirements of Article 6.7 and Annex I  
 
 Article 6.7 of the ADA provides that Members may carry out investigations in the territory of 
other Members in order to verify the information pr ovided in the framework of investigations or to 
obtain further details.  Verification visits are subject  to the agreement of the firms concerned and must 
be notified to the representatives of the government s of the Members in question.  Annex I to the 
ADA sets forth the procedures governin g on-the-spot investigations.  
 
Legislative Framework 
 
 Egypt’s legislation reflects the provisions of Article 6.7 and Annex I to the AD Agreement. 
Article 26 of the Regulation of Law No. 161/1998 states that: 
 
"The Investigating Authority may conduct on- the-spot verification visits inside and 
outside the country to obtain the informati on and data required for the investigation 
provided they obtain the approval of the parties concerned". 
Purpose of Verification Visits 
 
 The purpose of verification visits is to authen ticate the information that respondent companies 
have provided in response to the anti-dumping questi onnaires and to any subsequent deficiency letters 
addressed to them by the investigating authority. 
   
Conduct of Verification Visits 
 
 - Decision to conduct a verification visit   After receipt of all the information requested  from respondent companies, the investigating 
authority will first analyse whether or not the information provided is sufficient to warrant a G/ADP/AHG/W/170 
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 verification visit.  Companies having failed to provi de sufficient information will be informed of the 
decision of the investigating authority not to car ry out verification visits at their premises.  
  - Information provided to respondent co mpanies prior to verification visits 
 
 After having reached a decision to conduct a veri fication visit, the inves tigating authority will 
contact the respondent companies to inform them of its decision and propose dates for the verification visits.  If the respondents agree to the verification vi sits and to the proposed dates, the investigating 
authority will then notify the respondents’ Government s of its intent to hold verification visits and of 
the dates of these verification visits. 
  
 The investigating authority will then send th e respondent companies a verification outline (or 
brief) detailing the nature of the information provide d that it wishes to verify.  A typical verification 
brief will cover the elements described below.   
 Also, respondent companies will be advised to have all the information previously submitted 
to the investigating authority available throughout the verification visits as well as all the worksheets 
and source data used in order to prepare the anti-dumping questionnaire responses.    Moreover, respondent companies will be require d to ensure that all the personnel that was 
involved in the preparation of the information prev iously submitted to the investigating authority is 
present.  
  Finally, respondent companies will be informed that verification visits are not intended to be 
an opportunity for the submission of new factual information.  New information will be accepted 
during verification visits only when: 
 
 (i) it constitutes minor corrections to information previously submitted to the 
investigating authority; or  
  (ii) it corroborates, supports or clarifies information already on the record.  
 - Information provided to respondent co mpanies after the verification visits 
  Following verification visits, the investigating authority will issue a Factual Report for each of the companies that was visited.  The Factual Re port will contain a summary of the information that 
was verified as well as a reference to the source documents that were provided by the respondent 
companies and verified by the investigating authority.   
  At a later stage of the investigation, the inv estigating authority will prepare an Essential Facts 
and Conclusions Report which will allow interested parties to understand how the information that 
was examined by the investigating authorities during the verification visits was used.  Further to the 
disclosure of the Essential Facts and Conclusions Repor t, interested parties will be invited to comment 
on the information that they have provided during the verification visits and on their use by the 
investigating authority.   
Elements Examined During Verification Visits 
  During verification visits, the investigation authority will generally examine the following 
elements:   G/ADP/AHG/W/170 
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  - Export price 
 
• Identification of the sales to be examined 
 The investigating authority will use the invoices price as the base price and 
select a random shipment to be examined;  
 
• Export sales’ distribution  
The investigating authority will examine the selling and distribution arrangements between the verified company and its export customers;   
• Invoice prices 
The investigating authority will verify the terms of sales and delivery, e.g. 
FCA, FOB, C&F, CIF, and will determine which costs and charges, in 
addition to the price of the product, are included in the export invoice prices;  
 
• Exchange rates 
Since the comparison of the normal value and export price normally requires currency conversions, the investigating authority will examine exchange rates 
used by the company to convert any ch arges in local currency to the foreign 
currency used on the export invoice.  For example, where the exporter has 
used a local freight company and the fre ight charges were invoiced in local 
currency, the investigating authority will need the exchange rate used for this 
portion of the export price to convert the freight charges from local currency into the foreign currency reported on the invoice;  
 
• Adjustments to the export price 
These include: discounts, ocean freight , insurance and handling charges, 
warranty and advertising charges, stor age charges, packing charges, inland 
freight, cost of credit, physical differences, differences in taxation etc.  Documents that are used to verify these items include: general ledgers, including purchase journals, inventory ledgers, shipment journals, accounts 
receivable journals, sales journals (and sequential invoice and credit memo 
files, as well as customer correspondence files or customer-specific sales logs for the investigation period of the subject goods); payment journals, (including such supporting items such as bank statements, currency exchanges and notifications of paym ent); payroll journals, all expense 
journals and cash receipts journals; sales agreements or contracts, purchase 
orders, order confirmations, invoices, export licenses, shipping notices and bills of lading. 
 
 - Normal value  
    
• Level of trade 
The level of trade, e.g. sales to retailers, wholesalers, end-users, will be carefully examined by the investigating authority;  
 
• Domestic sales distribution 
The investigating authority will verify the selling and distribution arrangements between the company and its domestic customers; 
 G/ADP/AHG/W/170 
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 • Invoice prices  
The verification visits will serve to confirm the terms of sale and delivery, e.g. Ex-Factory, FCA, FIS, and to id entify the charges which are included in 
the domestic invoice prices;   
  
• Adjustments to the normal value  
These include items such as: discounts,  packing/storage/warranty costs, 
inland freight and insurance charges, promotion/advertising costs, credit costs, other adjustments such as taxes and import duty drawbacks, physical differences. 
 
 - Cost of production 
 
The investigating authority will verify, by selecting certain samples, elements of the 
cost of production of types/models sold both on the domestic and export markets or 
closely resembling types.  Documents used  to verify cost items notably include: 
general ledgers, including purchase journals, inventory ledgers, shipment journals, 
accounts receivable journals, sales journals  (and sequential invoice and credit memo 
files, as well as customer correspondence fil es or customer-specific sales logs for the 
investigation period of the subject goods ); payment journals, (including such 
supporting items as such as bank statements, notifications of payment), payroll journals, all expense journals and cash receipts journals, sales agreements and 
contracts, purchase orders, order confirmations, invoices and production cost sheets. 
 
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