WORLD TRADE  
ORGANIZATION  G/ADP/Q1/ALB/11 
G/SCM/Q1/ALB/11 12 January 2009 
 
(09-0073) 
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 
 
Replies to Questions Posed by the EUROPEAN COMMUNITIES1 
Regarding the Notification of ALBANIA2 
 
 
 The following communication, dated 17 November 2 008, is being circulated at the request of 
the Delegation of Albania.    
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  Question 1  
 Articles 4 (3) and 4 (4) on normal value do not seem to be coherent with Article 2.2 ADA 
which states that the margin of dumping may either be established by comparison with a comparable price of the like product when expo rted to an appropriate third country, provided 
that this price is representative, or with the cost  of production in the country of origin plus a 
reasonable amount for administrative, selling and ge neral costs and for profits.  As opposed to 
Article 2.2 ADA Articles4 (3) and 4 (4) do not see m to be applied alternatively.  Could Albania 
please clarify whether they are applied alternatively and the meaning of the term representative value?   
 
Reply
 
 
 We state that Article 4/3 and 4/4 is in c onformity with Article 2.2 of ADA, and in our 
understanding the meaning of representative value is in concept of representative price.   
 
Question 2  
 
 Could Albania please clarify the meaning of the term "total cost of production in 
Article 5 – does it in particular include admini strative, selling and general costs as set out in 
Article 2.2.1 ADA?   
 
Reply  
 
 As to the accounting principles, the Total Cost of Production includes:  Direct cost of production and Indirect cost of production:   
                                                     
 
1 G/ADP/Q1/ALB/10 - G/SCM/Q1/ALB/10.   
2 G/ADP/N/1/ALB/2/Rev.1.   G/ADP/Q1/ALB/11 
G/SCM/Q1/ALB/11 Page 2 
 
 
   Direct cost of production
 
 Fixed costs  Variable costs  
 Indirect cost of production
 
 Selling costs  Administrative and general costs  ___________________________  Total cost of production 
 
 The total cost of production in article 5 of Al banian law includes in particular all the above 
mentioned costs, as set out in Article 2.2.1 of ADA.    
Question 3  
 
 In determining the normal value Article 6 requires to also calculate the costs of the 
injured entity.  In order to determine dumping the costs of the injured entity would normally 
not be necessary to calculate.  Could Albania plea se clarify the objective of this requirement?   
 
Reply
 
 
 IN FULL CONFORMITY WITH ART. 2.2.1.1 OF ADA   The objective of this requirement is that besid es the costs that shall normally be calculated on 
the basis of records kept by the exporter or produ cer under investigation, the investigation authorities 
take in account also of the data provided by the injured (complaining or not) entities (subjects).   
 
Question 4  
 
 Article 22 on threat of material injury does not specify that the change in circumstances, 
which would create a situation in which the dum ping would cause injury, must be clearly 
foreseen and imminent.  Could Albania please conf irm that Article 3.7 ADA is fully applied?   
 
Reply
 
  The provisions of article 22 of the Albanian  Law are not contrary of the provisions of 
Article 3.7 of ADA, which according to our opinion th e provisions of ADA are respected in our law.   
 
Question 5  
 
 Article 27 (5) sets out the requirements when an  application shall be considered to have 
been made "by or on behalf of the domestic i ndustry".  Could Albania please clarify how it is 
ensured that no investigation shall be initiate d when domestic producers expressly supporting 
the application account for less than 25 per cen t of total production of the like product 
produced by the domestic industry?   
 
Reply
 
 
 Besides the 50 per cent standing requirement which is restricted to only the production of those domestic producers expressing either support or  opposition to the application (those producers 
who have not expressed an opinion are ignored), the 25 per cent standing requirement is absolute, that is the investigating authorities must ascertain th at the collective production of the domestic industry  G/ADP/Q1/ALB/11 
 G/SCM/Q1/ALB/11 
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  constitutes the whole producion of the domestic industry.   Therefore, the authorities cannot rely solely 
on the information submitted by the applicant, c onsidering that the production figures of all its 
domestic competitors might not be available to it.  In case, the application does not reflect the full 
extent of the domestic production, the authorities sh ould request the information from other sources, 
in order to have the whole picture of the domestic production.   
  The 25 per cent standing requirement is calcu lated as the ratio between domestic production 
supporting the aplication and the total production of  all the domestic production producing the like 
product, whether they have expressed an opnion on th e application or not.  If this ratio expressed is 
percentage counts less than 25 per cent, it means that  the applicant does not meet standing, so that the 
process cannot continue.    
Question 6  
 
 Article 38 provides that provisional measures shall apply for a period not longer than 6 
months but can be extended up to 9 months.  Article 7.4 ADA only provides this possibility when the investigating authority examines the a pplication of the "lesser duty rule", which does 
not appear to be foreseen in the Albanian law.   Could Albania therefore please clarify whether 
it applies the lesser duty rule?   
 Reply
 
  The "lesser duty rule" is foreseen in the Albani an law, precisely in Article 35 – point 5 where 
it is clearly expressed the same rule, but in othe r words which may just traslation matters.   
 
 
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