WORLD TRADE  
ORGANIZATION  TN/RL/GEN/78 
24 October 2005 
 (05-4902) 
Negotiating Group on Rules Original:   English 
  
PRODUCT UNDER CONSIDERATION
1 
 
Paper from Hong Kong, China  
 
 The following communication, dated 19 October 2005, is being circulated at the request of the Delegation of Hong Kong, China. 
 
 The submitting delegation has requested that th is paper, which was submitted to the Rules 
Negotiating Group as an informal document (JOB(05)/ 259), also be circulated as a formal document. 
 
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 Hong Kong, China welcomes the textual proposals on definition of product under 
consideration by Brazil;  Chile;  Israel;  Korea,  Rep. of;  Singapore;  Switzerland and Thailand 
(TN/RL/GEN/50), and by Canada (TN/RL/GEN/73). 
 
 Hong Kong, China has benefited from previous discussions on the former submission, noting, in particular, that several members have pointed out that one key concept in defining the scope of product under consideration is the “homogeneity” of the product.  Hong Kong, China also notes with 
interest the textual proposal in the Canadian s ubmission, which appears to build on the former.  
Hong Kong, China believes the draft text in the Canadian submission can provide a good basis for 
discussing a new definition on product under considera tion.  Using the Canadian draft text as the 
basis, Hong Kong, China marks up its further prop osed changes.  The main differences are: 
   
- The obligation to define the product under consideration s hould be a positive obligation to 
include only the right goods in the product sco pe.  It should not be a passive/negative 
obligation whereby all goods are included unless authorities determine that some goods 
should be excluded.   
 - It clarifies the concept of homogeneity, by specifying that only goods which are alike in all 
respects, or which have closely resembling ph ysical and market characteristics, should be 
included in the same product scope.  In exam ining market characteristics, it also adds a 
requirement to consider whether the goods comp ete in the same geographical market in the 
same period
2. 
 
- It provides, in the case of a split definition subsequent to the initiation, that authorities should 
re-examine the adequacy of standing in relation to the re-defined product.  The rationale is 
that exporters should not be prejudiced by an inappropriate defi nition of product under 
consideration at the time of initiation.   
                                                      
1 The proposal contained in this document does not represent a final position and may be subject to 
further addition and/or modification in the course of the negotiations.  Other provisions of the Anti-Dumping 
Agreement that may be affected by the proposal may be examined in the later stages of the negotiations when 
Members have a more comprehensive picture of the amended Agreement. 
2 A similar point was also made in the textual proposal in TN/RL/GEN/50. TN/RL/GEN/78 
Page 2  
 
  
In addition, the exporter should have adequate  opportunity to comment on the scope of the 
product under consideration, and its comments sh ould be duly considered by the authorities in 
determining the scope of the produc t under consideration.  An expr ess provision in Article 5 would be 
merited
3.   
                                                      
3 This issue is also raised in editorial note 8 to the Further Submission on Issues relating to the 
Initiation and completion of Investigations (T N/RL/GEN/69) from H ong Kong, China.    TN/RL/GEN/78 
 Page 3 
 
 
 Textual proposal  
 
5.x  An investigation can only be initia ted and subsequently  conducted with a 
proper determination of the scope of th e product under consideration.  Where Only goods which , 
on the basis of the evidence available at initiation, authorities determine to be alike in all respects 
or have closely resembling physical and market ch aracteristics, may be included in the definition 
of product under consideration, and be  subject to the same investigation.  that there is more than 
one distinct product under consideration, they sha ll initiate a separate investigation for each such 
distinct product.   Subsequent to the initiation of an inv estigation, if the further evidence obtained 
indicates to authorities that the investigation is with respect to two or  more than one  distinct 
products  under consideration (i.e. goods that do not have closely resembling physical and market 
characteristics) , an anti-dumping duty shall not be imposed on any distinct product unless a 
separate determinations  of standing4, dumping and a separate determination of injury are made 
with respect to that product.   
5.x.1 A determination of whether two goods ha ve closely resembling physical and market 
characteristics  there is more than one distinct  product under consideration shall be based on 
an objective examination of the physical char acteristics of the imports, including technical 
specifications and quality, and their market characteristics, including end uses, 
substitutability, pricing levels,  and distribution channels, and whether they compete in the 
same geographical market in the same period .  This list is not exhaustive, nor can one or 
several of these factors necessarily give decisive guidance.  
 
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4 Authorities shall terminate the investigation in respect  of a distinct product forthwith if they find that 
the standing criteria under Article 5 would not have been met at the time of initiation had that product been 
treated as a distinct product at the time of the initiation.