WORLD TRADE  
ORGANIZATION  G/ADP/Q1/ISR/12 
G/SCM/Q1/ISR/12 5 April 2006 
 
 
(06-1603) 
Committee on Anti-Dumping Practices Committee on Subsidies and Countervailing Measures  
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Questions Posed by the UNITED STATES
 
Regarding the Notification of ISRAEL1 
 
 
 The following communication, dated 4 April 2006, is being circulated at the request of the 
Delegation of the United States. 
 
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 The United States thanks Israel for the notif ication of its Trade Levies Law (5751-1991) 
(hereinafter “ITLL”), as amended on 7 July 2005. 
 
1. In the event of a conflict between Israel’s international obligations  and its domestic law, 
which takes precedence in the administration and judicial review of trade levies?  2. Section 10(b) of Israel’s Trade Levies Law (“ITLL”) refers to ‘market conditions in the 
exporting country’ that may preclude a price comparison for antidumping purposes.  Please provide 
examples of such ‘market conditions.’  3. Please provide an explanation of how the ‘reas onable profit’ referred to  in section 10(b)(2) is 
to be calculated. 
 
4. Please provide a further explanation of the so rts of ‘compensatory arrangements,’ including a 
‘benefit above the sale price,’ as referenced in secti on 10(d)(1), that may exist, precluding the use of 
such sales in the dumping analysis.  5. Does the term ‘special relationship’ in section 10(d)(2) refer to all types of affiliation or just 
certain affiliation relationships?  Are there any affiliated party sales that Israel would use in 
calculating normal value?  6. How, according to section 13(a), does Israel de termine whether ‘ the price of goods ... is 
affected by state intervention in trade’?  Of the various ways in which normal value may be 
determined under such circumstances, which has been the most frequently used in the past? 
 7. Please describe Israel’s comparison me thodology, under section 15(a), when sales being 
compared are not made at the same level of trade.  
                                                     
 
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  8. Section 18 provides guidelines for calculating th e rate of subsidization based on different 
forms of financial contribution.  These guidelin es specifically reference the following types of 
subsidies:  equity capital, loans, securities as well as the supply of goods or the provision of services.  
Has Israel promulgated guidelines on how to determine benefit with rega rd to other types of financial 
contribution (e.g., grants, tax incentives and debt forgiveness)?  
 9. Pursuant to Section 26.(b), please clarify whet her the Commissioner is expected to notify all 
known producers and/or exporters of  the imported goods regarding in itiation of an investigation. 
 
 a. What steps are taken to identify and notify all known producers/exporters?   
 
b. Please explain the criteria used to dete rmine which producers and exporters are to 
receive notification and, if applicable, which are not. 
 
 c. If certain producers and exporters are known to the Commissioner but not notified, 
how will those parties be treated (e.g. as non- participating interested parties, or as 
uncooperative respondents), and what will be the source of data used to calculate 
measures for those producers and exporters? 
 10. Are the governments of exporting countries consid ered interested parties in their own right?  
How and at what point in the process are forei gn governments notified of investigations of their 
producers and exporters?  11. What provisions (e.g. a reading room or an  office that will provide copies upon request) are 
made for public access to non-confidential documents, i.e. those not deemed confidential under the 
provisions of Section 32.2(a) ITLL? 
 12. Please explain how Section 29 ITLL complies with the requirements set forth in Articles 7.1 and 7.3 of the AD Agreement and Articles 17. 1 and 17.3 of the SCM Agreement.   
  a. Please provide information as to whether Israel has previous experience applying 
provisional measures prior to 60 days from the date of initiation.   
  b. What is the maximum period for which pr ovisional measures may remain in effect?   
  c. Are provisional measures set at the rate of the dumping margin?   
 
 d. Does Israel have discretion to apply the lesser duty rule?   
 13. Please explain the effect of the “temporary  guarantee” (Section 29 ITLL) on the overall 
provisional measures.  
 a. Were the final determination to resu lt in a lower rate than established in the 
preliminary determination, what is the process for refunding overpayment of provisional measures?   
  b. Will interest be pa id on the overpaid funds? 
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  14. Section 30.(b) ITLL states that “[t]he Commissioner may invite  a notified party to also 
present its claims orally, as submitted in writing.” (Emphasis added.)   a. Please explain whether a notified party has the right to request a hearing, and the 
means by which a notified party may make such a request. 
  b. If the opportunity for a hearing is solely at the discretion of the Commissioner, please 
explain the criteria used to determine whic h notified parties will receive an invitation 
to participate in an oral presentation.  
 
15. Please explain the following deta ils of Section 30.(c) ITLL:   
  a. What steps must a notified party take in order to see non-confidential information 
pertaining to the investigation? 
 
 b. Does the Commissioner keep a publicly-ava ilable record of all information, including 
confidential information, ex parte  communications, etc., so that interested parties are 
aware of the existence of such information? 
 16. Does Israel permit disclosure of confidential information to representatives of interested 
parties pursuant to an administrative protective orde r, as permitted by footnote 17 to Article 6.5 of the 
ADA and footnote 42 of Article 12.4 of the ASCM?  17. Please explain the process undertaken by the Mi nister in determining the circumstances in 
which the Commissioner is entitled to rely on the in formation and evidence available, pursuant to 
Section 32.1 ITLL.  Please also address whether inte rested parties are provided an opportunity to cure 
deficient submissions.  What role, if any, is pl ayed by the Advisory Co mmittee in this process? 
 18. Please explain how Section 32.3(b) ITLL co mplies with the provisions of Annex I ADA and 
Annex VI ASCM, as follows:  
 a. If a company and its government are w illing to permit a verification, under what 
circumstances will the Commiss ioner choose not to perform on-site verification?   
 
b.  If a verification is not performed for any reason other than non-cooperation by the 
foreign company, what other opportunities will the foreign company have to make all 
necessary records available to the administering authority? 
 
c. If the Commissioner does not verify a foreign company for any reason other than 
non-cooperation, will the lack of verificati on result in the use by the Commissioner of 
facts available?  
 
19. Section 32.7(c)(1)(b) provides that the Commissioner may determine “for special reasons” that the volume of dumped imports is not neg ligible.  Please explain the “special reasons” under 
which the Commissioner may determine that the volum e of imports is not negligible.  How is a 
determination that imports are not negligible for “sp ecial reasons” consistent with Article 5.8 of the 
ADA?   20. Sections 32.8-32.11 of the ITLL describes the procedures Israel uses to make final determinations in original investigations.  Do es Israel use the same procedures in reviews? 
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  21. Please provide additional explanation of the fo llowing provisions of Title Six: Undertakings: 
  a. What is the latest opportunity in the course of an investigation at which an exporter 
and the Commissioner may agree to an unde rtaking, pursuant to Section 32.13? 
 
 b. Please explain the circumstances unde r which the Commissioner would accept an 
undertaking but continue complaint pr oceedings, as permitted by Section 32.15. 
 22. Section 32.18(a) of the ITLL specifies “the trade relationship between Israel and foreign 
countries” as a factor the Minister of Finance shall take into account in determining whether to accept 
the advisory committee’s recommendations.  Could Is rael please elaborate on how this provision is 
applied?  23. Please identify the criteria Israel examines in  determining whether to impose a lesser duty 
pursuant to Section 32.19(b) of the ITLL. 
 24. Section 32.25(a)(3) of the ITLL authorizes Isr ael to conduct reviews to ascertain whether the 
“duty that was levied is not sufficient to prevent injury to the domestic industry.”  What criteria does 
Israel examine in conducting such a review?  
25. Please clarify whether a re-examination, as descr ibed in Section 32.25(c), may be undertaken 
if the investigation ended without measures being imposed.  26. Does Section 44 ITLL, authorizing the Minister to prescribe fees to be paid by applicants, 
apply to producers/exporters requesting a re -examination or new shipper investigation? 
 
27. Sections 52-55  ITLL provide for criminal  penalties (including imprisonment and monetary 
penalties), for a person or a “body corporate” that commits certain “violation s” in the course of an 
investigation, such as submitting false informati on, failing to submit necessary information, and 
unlawfully disclosing confidential in formation.  Please explain the justification for such criminal 
penalties, and their basis under the ADA.  Are these penalties enforced regardless of the defendant’s 
citizenship, residency, or place of business?   
 28. (a) Sections 24.(b) and 32.5(d)(1) ITLL re fer to “section 32(g)”.  However, no section 
32(g) appears in the ITLL.  Please clarify wh at section of the ITLL is referred to in 
sections 24.(b) and 32.5(d)(1). 
  
 (b) Section 32.5(c) of the ITLL references Section 21(3)(2), which does not appear in the 
ITLL.  Is the correct reference to Section 21(b)(2)? 
  (c) Section 32.5(d) of the ITLL references section 32(g), which does not appear in the 
ITLL.  Is the correct reference to Section 32.7(c)?   
 
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