./.   WORLD TRADE  
ORGANIZATION  TN/RL/W/205/Rev.1 
27 April 2006 
 (06-1991) 
Negotiating Group on Rules Original:   English 
  
 
CIRCUMVENTION 
 
Paper from Chile and Hong Kong, China
 
 
Revision  
 
  The following communication, dated 20 April 2006,  is being circulated at the request of the 
Delegations of Chile and Hong Kong, China.  
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A number of papers have been put forward in  the Negotiating Group on Rules concerning the 
topic of circumvention”
1.  Supporters of “anti-circumvention rules” refer to the Ministerial Decision 
on Anti-circumvention2 to support their argument of the need  for specific rules in this area. 
 
The Ministerial Decision refers to the desirability of uniform rules in this area, but does not 
prejudge the form of the rules.  Above all, it do es not presuppose the application of separate rules and 
procedures, other than those for original investiga tions, to deal with the so-called “circumvention” 
issue.   
 
On the other hand, the Decision, by referring to the desirability of uniform rules, registers a 
problem arising from the lack of uniformity in Memb ers’ current practices.  In this regard, Hong 
Kong, China notes the statement made by the Unite d States, that “most users of trade remedy 
instruments clearly have some practice for addressing what they perceive to be circumvention”, and 
that “some Members act against what they perceive  to be circumvention without labeling or reporting 
their actions as such”3.     
 Hong Kong, China notes that certain problematic anti-dumping practices that may be related 
to a perceived problem of “circ umvention” have been taken by  some Members, for example: 
 
- Defining the scope of the “product under considera tion” broadly, in order to bring in a wide 
range of articles, including parts and components,  or to bring in goods which, although having 
similar physical characteristics have very different market characteristics e.g. end uses, into the investigation, in order to pre-empt circumvention through “assembly”; 
 
                                                     
 
1 Papers entitled “Submission on Circumvention” TN/RL/GEN/71 and “Circumvention” 
TN/RL/GEN/106 from the United States; paper en titled “Circumvention” TN/RL/W/200 from Brazil 
2 Decisions and Declarations relating to the Agr eement on Implementation of Article VI of the 
Agreement on Tariffs and Trade 1994 
3 Second paragraph, and Footnote 4, of TN/RL/GEN/71 TN/RL/W/205/Rev.1 
Page 2  
 
  - Including a number of exporting Member(s) in the investigation despite small trade volume, 
in order to pre-empt possible trade diversi on after initiation or imposition of provisional or 
definitive duties; 
 - Describing the product scope of an anti-dumping order in general terms, and carrying out 
scope determinations after the imposition of an anti-dumping measure so that the measure can 
effectively be extended to cover products wh ich should not come within the product under 
consideration; 
 - Adopting imprecise rules or rules which are different from the importing Member’s normal 
rules of origin, in order to find that imports from a third country are used to “circumvent” an 
anti-dumping order against imports from another country. 
 
If the Anti-dumping Agreement were to specifically  address the issue of circumvention, then 
apart from the need to define “circumvention” narro wly and to devise rules that are clear, predictable 
and respond to normal business activities, Hong Kong, China also believes that any new provisions 
must specifically address the anomalous anti-dumping practices claimed or perceived to be tackling “circumvention”, including those listed above, in or der to eliminate these problematic practices.  
Otherwise, the disciplines and requirements laid  down in the Anti-dumping Agreement for imposing 
or continuing with an anti-dumping measure, could be undermined and effectively “circumvented”.   
 
 
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