WORLD TRADE  
ORGANIZATION  G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 13 July 2006 
 
 
(06-3389) 
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  
 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, 
PENGHU, KINMEN AND MATSU 
 
Supplement
 
 
   The following communication, dated 12 July  2006, has been received from the Permanent 
Mission of the Separate Customs Territory  of Taiwan, Penghu, Kinmen and Matsu. 
 
_______________ 
 
 
 Pursuant to Article 18.5 of the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 (Anti-Dumping Ag reement) and Article 32.6 of the Agreement 
on Subsidies and Countervailing Measures (Subsidies Ag reement), the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu hereby notifies the Committee on Anti-Dumping Practices and 
the Committee on Subsidies and Countervailing M easures of its Regulations Governing the 
Implementation of the Imposition of Counterva iling and Anti-Dumping Duties, as amended on 
23 February, 2005. 
 
 Please also note that the attached English transla tion is not the official text.  Should there be 
any discrepancy between the Chinese texts and the Eng lish translation, the original Chinese texts shall 
govern, and in all instances of interpretation the Chinese original texts should be consulted. The 
Chinese texts can be found at the following website address: 
http://law.moj.gov.tw/Scripts/Query 4A.asp?FullDoc=a ll&Fcode=G0350034. 
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  The Regulations Governing the Implementation of the Imposition of Countervailing and 
Anti-Dumping Duties  
 Promulgated on 3
rd July, 1984 with the most recent amendment being of 23rd February, 2005. 
 N.B. In case of any discrepancy between this  English translation and the Chinese text, the 
Chinese text shall prevail. 
Article 1 
 
 The Regulations herein are prescribed pursuant to paragraph 4 of Article 69 of the Customs 
Act (hereinafter referred to as the Act). 
 
Article 2 
 
 The imposition of a countervailing duty and anti- dumping duty shall be approved, pursuant to 
the relevant acts and regulations , and publicized for implementation following the investigation and 
determination by the Ministry of Finance (hereinafter  referred to as the MOF) as initiated ex officio, 
by an application, or by the referral of other government agencies.  
Article 3 
  With respect to a case of the imposition of a countervailing duty or anti-dumping duty 
(hereinafter referred to as the case), the authority responsible for investigating whether the imported 
product is subsidized or dumped shall be the MOF; whereas, the authority responsible for 
investigating whether the subsidized or dumpe d imported products cause injury to the domestic 
industry shall be the Ministry of Economic A ffairs (hereinafter referred to as the MOEA). 
  The aforesaid investigation for which the MO EA is responsible shall be conducted by its 
International Trade Commission (hereinafter referred to as the ITC).  
Article 4 
  The countervailing duty and anti-dumping duty shall be paid by the duty-payer as prescribed 
in Article 6 of the Act.  
Article 5 
  For the purpose of the Regulations, the term “ like product” shall be interpreted to mean a 
product which is identical to, or composed of the sa me materials and is of th e same characteristics or 
features as the imported subject product; and, al though different in appearance or packaging, a 
product having the same material composition, char acteristics and features as the subject product shall 
be considered as a like product. 
 
 For the purpose of the Regulations, the term “dom estic industry” shall be interpreted to mean 
all the domestic producers of the like products, or domestic producers whose collective output of the 
like products constitutes a major proportion of th e total domestic production.  However, producers 
who are related to domestic importe rs, or are foreign exporters, or are themselves importers of the 
subject product, may not be included in the domestic industry. 
  For the purpose of the preceding paragraph, pr oducers shall be deemed to be related to 
domestic importers or fore ign exporters only if legally or opera tionally, one of them directly or  G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 3 
 
 
  indirectly controls the other, or together they dir ectly or indirectly control a third person, or both of 
them are directly or indirectly controlled by a thir d person, and under the consideration that the effect 
of the relationship is to cause the producer co ncerned to behave differently from non-related 
producers.  
 
Article 6 
 
 The producers of a domestic like product or  related commercial, industrial, labour, 
agricultural associations or other legal organizati ons, may apply for the imposition of a countervailing 
duty or anti-dumping duty against the imported product on behalf of the industry of the like product in 
so far as they are legally established and can identify their representative of the industry.  
  The aforesaid “representative of the industry” sh all be determined by referring to the total 
production of the like product within the most recent y ear of the application.  The application shall be 
supported by those domestic producers whose collectiv e output constitutes more than 50 per cent of 
the total production of the like product produced by the portion of the domestic industry expressing 
either support for or opposition to the applica tion; and the production of the domestic producers 
expressing support for the application shall account fo r more than 25 per cent of the total production 
of the like product produced by the domestic industry.  Article 7 
 
 An applicant applying for the imposition of a countervailing duty or anti-dumping duty on imported products shall file a written applicati on containing the following items together with 
sufficient materials as required under para graph 1 of Article 20 with the MOF. 
 
 1. Information about the imported subject product:    (1) the description, quality, specification, use, tariff number or import and export 
commodity classification code, and other characteristics; 
 
  (2) the names of the country or countries of export or origin, and any known 
foreign producers, exporte rs and domestic importers. 
  2. Information about the qualifications of the applicant:  
  (1) the identity of the applicant, and of the producers of the domestic like product 
expressing support for or opposition to the application, with information of 
their annual production for the year pr ior to application, and documents 
supporting its qualification to represent the industry.   
   (2) The name, quality, specifications, uses, tariff number or import and export 
commodity classification code, and other characteristics of the like product. 
  3. Information about the subsidy or dumping of the subject product:    (1) the applicant applying for the imposition of a countervailing duty on the 
imported product shall state that a fina ncial contribution or other form of 
subsidy has been directly or indirectly received during the course of manufacture, production, sales, and transportation process in the country of export or origin;  
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    (2) the applicant applying for the anti-dumping duty on the imported product 
shall state the facts supporting the dumpi ng claim, as well as the selling price 
to this country, the comparable selling pr ice in the ordinary course of trade in 
the country of export or origin, or the comparable export selling price to an 
appropriate third country provided that the price is representative, or the 
constructed price consisting of the cost of production in the country of origin 
plus a reasonable amount for administ rative, sales and other relevant 
expenses, and for profits;  
 
  (3) where the applicant asserts that there is a necessity for the provisional 
imposition of countervailing or anti-dumpi ng duty, the applicant shall state 
the reasons thereof; and 
   (4) the applicant who asserts the nece ssity for the imposition of a countervailing 
duty or anti-dumping duty on the imported product prior to the date of the 
provisional imposition of a countervai ling duty or anti-dumping duty shall 
state the existence of situations as prescribed under Article 42. 
  4. Information about the injury to the domestic industry:  
  (1) the production, volume and value of sales, profits, employment and 
utilization of production capacity, during the most recent three years, for the applicant and the industry which the applicant represents; 
   (2) the total volume and value of the imports of the subject product during the 
most recent three years, the market share in the domestic market, the volume 
and value of the imports from the country  of export, its impact on the prices 
of the domestic like product, the description of alleged injury in the domestic industry, and information on the causal  link between the subsidized or 
dumped imports and alleged injury; 
 
  (3) where an assertion of a material retardation of establishment of a domestic 
industry of the like product occurred, the applicant shall prove that the establishment of such an industry is i mminent, and that the plan for the new 
industry has been substantially implemented; 
 
  (4) where there is a good reason for not being able to submit the information of 
the most recent three years relating to th e injury to the domestic industry, the 
applicant may nevertheless submit such information of the most recent period relating to the injury to the domestic industry. 
 
Article 8 
 
 With respect to an application for imposition of a countervailing duty or anti-dumping duty, the MOF shall consult with the relevant agencies to  submit a proposal as to whether to refer the matter 
of the initiation of an investigation to the Ta riff Commission (hereinafter referred to as the 
Commission) for decision; provided, that the appli cation shall be rejected for any of the following 
reasons: 
  1. The identity of the applicant does not m eet the conditions prescribed under Article 6; 
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   2. the contents of the application do not meet the requirements prescribed under the 
preceding Article, and the subsequent supplem ent and correction is not made within 
the prescribed time limit so required by the authority; 
 
 3. the application is obviously not within the scope of the imposition of a countervailing 
duty or anti-dumping duty. 
  With the exception of applications rejected pursuant to the preceding reasons, the MOF shall, 
within 40 days from the next day of receipt of th e application, submit the proposal to the Commission 
for decision.  However, the time  spent by the applicant for supplement and correction pursuant to 
subparagraph 2 above shall be excl uded from this forty-day period. 
For the case in which the Commis sion decides to initiate an investigation of countervailing 
duty, the MOF shall, prior to the making of public notice of initiation of investigation, officially 
notify the government of the country of export or orig in, or its official representative for consultation 
with the aim of clarifying the situation and arrivi ng at a mutually agreed solution.  Moreover, during 
the period of the investigation, the MOF shall provide opportunities for further consultations. 
For the case in which the Commission decides to initiate an investigation of anti-dumping, the 
MOF shall , prior to the public notice of initiation of inv estigation, officially notify the government of 
the country of export, or its official representative. 
 The consultation pursuant to paragraph 3 above  shall have no effect on the progress of the 
investigation and determination.  
Article 9 
 
 For the case in which the Commission decides not  to initiate an investigation, the MOF shall 
immediately notify the applicant and the known inter ested parties in writing, and close the case after 
making a public notice thereof.  For the case in  which the Commission decides to initiate the 
investigation, the MOF shall immediately notify th e applicant and the known interested parties in 
writing and make a public notice thereof. 
 
 Upon initiation of the investigation, the MOF sh all provide the text of application as required 
under Article 7 to the government of the country of  export or origin, or its representative and all 
known foreign exporters, and to other interested parties upon request.  However, this provision does 
not apply with respect to information which shall be kept confidential pursuant to the relevant acts 
and regulations. 
 
Article 10 
 
The term “interested party” as set forth in the Regulations shall include the following: 
 
 1. a foreign producer, exporter, a nd domestic importer of the product under 
investigation, and a commercial, industri al, or agricultural association in which a 
majority of the members of which are domestic importers, fo reign producers or 
exporters; 
 
 2. the government or its representative of the exporting country or area of the product 
under investigation, or the country or area of origin of the product under investigation; 
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   3. a producer of domestic like products or a commercial, industrial, or agricultural 
association in which a majority of the members of which are domestic producers; 
  4. other interested parties as determined by the authority concerned. 
 
Article 11 
 
 For the case in which the Commission determines to initiate an investigation, the MOF shall 
proceed with an investigation of the existence of  a subsidy or dumping, and shall immediately refer 
such case to the MOEA for investig ation into the existence of inju ry to the domestic industry.  
 
Article 12 
 
 When the MOEA conducts an investigation pur suant to the preceding Article, it shall examine 
the information submitted by the applicant and th e interested parties, and any other relevant 
information available, and shall notify the MOF re garding its preliminary determination within 40 
days from the next day of its receipt of the no tice from the MOF.  For the case where the preliminary 
determination made is that there was no injury to the domestic industry, the MOF shall, after the 
Commission determines to terminate the case, immediately notify the applicant and the known 
interested parties in writing, and make a public notice thereof.  For the case where the preliminary 
determination made is that there was injury to th e domestic industry, the MOF shall, within 70 days 
from the next day of its receipt of the notice from the MOEA, submit the case to the Commission to make a preliminary determination of whether ther e is a subsidy or dumping, and shall notify the 
applicant and the known interested parties in  writing, and make a public notice thereof. 
 Article 13 
 
 In cases where a public notice has been made pur suant to Article 9, and interested parties 
have been given opportunities to submit informa tion and make comments, the MOF may, after a 
preliminary determination of the existence of subsi dy or dumping and of the consequent injury to the 
domestic industry, apply provisional countervailing or anti-dumping measures after consulting with 
the authorities concerned, in order to prevent inju ry to the domestic industry during the investigation 
period, and shall notify the applicant and all known interested parties immediately and make a public 
notice thereof.   The duty-payer may provide secur ity or guarantee as set forth in Article 11 of the Act, for the 
imposition of provisional countervailing duty or an tidumping duty as referred to in the preceding 
paragraph.   The provisional countervailing duty or anti-dumpi ng duty shall not be levied during the sixty-
day period from the date of initiating an investiga tion.  The maximum provisional duty levy period is 
four months.  However, upon the request of the fore ign exporter occupying a considerable ratio of the 
trade volume, the maximum imposition period of th e provisional antidumping duty may be extended 
to six months.     When the MOF, in the course of an investiga tion, considers to examine whether a duty lower 
than the margin of dumping would be sufficient to remove injury, the aforesaid imposition periods of 
four months and six months sha ll be extended to six months and nine months respectively following 
determination by the Commission.     G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 7 
 
 
  Article 14 
 
 For the case in which the preliminary determina tion is made, the MOF shall proceed with the 
investigation, whether there is a subsidy or dumpi ng involved, and shall, within 60 days from the next 
day of the preliminary determination, submit the case to the Commission to make its final 
determination.   For the case in which the final determination is  that there is no existence of a subsidy or 
dumping, the MOF shall terminate the case and notify the applicant and the known interested parties 
in writing, and make a public notice thereof. At th e same time, the MOF shall notify the MOEA of the 
termination of its investigation.  For the case in wh ich the final determination is that there is the 
existence of a subsidy or dumping, the MOF sha ll immediately notify the applicant and the known 
interested parties in writing, and make a public no tice thereof, and refer th e case to the MOEA.  The 
MOEA shall complete, within 40 days from the next day of receipt of the notice, the final 
investigation and determination of whether the subsidy or dumping causes injury to domestic 
industry, and shall notify the MO F of its final determination. 
 
Article 15 
 
 In the case of retraction by the applicant or the discovery of any of the following 
circumstances during the course of the investigatio n made by the authorities, the MOF shall submit 
the details of the case to the Commission for determ ination, and thereby terminate the investigation: 
  1. There is insufficient evidence of subsidy, dumping or injury;  
 2. The amount of subsidy is less than one per cent of the price of the subject product 
imported into this country; 
  3. the dumping margin is, up on the final determination, less than two  per cent of the 
price of the like product imported from the country or countries of export or origin into this country; and   
 
 4. the respective volumes of dumped or subsidized imports of subject countries are 
found to account for less than three per cent of the imports of like products, except that the total imports of all such subject  countries exceeds seven per cent of the total 
imports of the like product. 
 
 Where the investigation is terminated pursu ant to the preceding paragraph, the MOF shall 
immediately notify the applicant and any known in terested parties in writing, and make a public 
notice thereof, and close the case thereafter.  
Article 16 
 
 For the case in which the final determination made  by the MOEA is that there is no injury to 
the domestic industry, the MOF shall, after th e Commission determines to terminate the case, 
immediately notify the applicant and any known in terested parties in writing, and make a public 
notice thereof.  Where the final determination fou nd injury to the domestic industry, the MOF shall, 
within ten days from the next day of its receipt  of the notice from the MOEA, submit the case to the 
Commission to determine whether to impose a count ervailing duty or anti-dumping duty.  For the 
case in which the Commission determines to impose a countervailing duty or anti-dumping duty, the MOF shall, pursuant to the relevant acts and regul ations, approve the subject  products, the country or 
countries of export, respective duty rates and the co mmencement or closing date of the imposition of G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 Page 8 
 
 
  the countervailing duty or anti-dumping duty, and shall immediately notify the applicant and any 
known interested parties in writing, and make a public notice thereof.   In deliberating the imposition of a countervaili ng duty or anti-dumping duty as referred to in 
the preceding paragraph, the Commission shall take the existence of a subsidy or dumping and the 
injury to the industry as its primary consideration, and may also consider the influence of the case on 
the overall economic interests of the country. 
Article 17 
The public notice concerning the initiation of th e investigation, the preliminary or final 
determination, the provisional imposition of a coun tervailing duty or anti-dumping duty pursuant to 
the Regulations, and the suspension or termination of  the investigation following the acceptance of an 
undertaking pursuant to Article 23, unless confid entiality is required, shall state the following: 
 1. Public notice concerning the initiation of the investigation: 
 
  (1) the names of the country or countries of export or origin, and the products 
involved; 
   (2) the date of the initiation of the investigation;  
  (3) the basis on which the subsidy or dumping is alleged; 
   (4) a summary of the economic factors of the alleged injury to the industry; and     (5) the period for submission of opinions by the interested parties and the address 
of the authorities concerned to which opinions by such parties shall be 
directed. 
  2. Public notice concerning prel iminary or final determination: 
   (1) the result of the determination on major assertion; and 
 
  (2) the reasons and legal bases of the determination.   3. Public notice concerning the provisiona l imposition of a countervailing duty or anti-
dumping duty: 
 
  (1) the reasons and legal bases of the preliminary determination of the existence 
of subsidy, dumping and injury; 
   (2) the names of the foreign producers, exporters, country or countries of export 
or origin; 
 
  (3) the description of the products involved;    (4) the reasons for the determination of  the subsidy or dumping margin thereof; 
and 
 
  (5) the main reasons leading to the de termination of the provisional imposition of 
a countervailing duty or anti-dumping duty.  G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 9 
 
 
   
 4. Public notice concerning the suspension or termination of the investigations 
following the acceptance of an undertaking: 
 
  (1) the relevant facts and legal b ases for the acceptance of an undertaking; 
   (2) the reasons for accepting or rejecting the opinions provided by the interested 
countries, foreign exporters  and domestic importers; 
 
  (3) the reasons for the determination of  a subsidy or dumping margin, and injury 
thereof; and 
   (4) the information of the undertaking which is non-confidential.  
 Article 18 
 
 Where necessary for the investigation and dete rmination of the case, the authorities concerned 
shall extend the respective period as set forth in th e Regulations up to one half of the respective 
period.  
 The authority concerned shall no tify the extension of the aforesaid period to the applicant and 
any known interested parties in writing, and shall make a public notice thereof. 
 
Article 19 
  With respect to the investigation of  the case, the authority concerned shall: 
  1. request the applicant and the known interested parties to respond to the questionnaire, 
or to provide relevant information; 
  2. conduct an appropriate i nvestigation of the relevant evidence and information 
presented in writing by the applicant and the interested parties; 
  3. where necessary, send officers to conduc t an investigation at the premises of the 
domestic importers or producers of the like product, the foreign producers or exporters; and 
 
 4. where necessary, notify the applicant or  the known interested parties to present their 
opinions, or accept the requests with reasons made by the applicant or the interested 
parties to express their opinions. 
  When the questionnaire is delivered to the fore ign producers or exporters pursuant to the first 
subparagraph of the preceding paragraph, the foreign producers or exporters shall be given at least 30 
days to reply from the day of receipt.  Any requests with reasons for an extension of the above period 
may be granted where necessary.  
Article 20 
 
 With respect to the information submitted, th e applicant and the interested parties shall 
separately identify which information may be disclosed and which may not. However, where 
confidentiality is requested, the non-conf idential summary shall be furnished. 
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   Where the request for confidentiality, pursuant  to the preceding paragraph, is not warranted, 
or where the non-confidential summary is not provide d, the authority concerned may disregard such 
information.  The applicant and the interested partie s may retrieve such information within seven days 
from the next day of receipt of the notice. 
 
 Where the applicant and the interested parties re quest for confidentiality of the information so 
provided is warranted, the authorities concerned sh all not disclose such information without the 
specific permission of the party submitting it.  Article 21 
 
 Where the applicant and the interested parti es fail to submit the necessary information within 
the specified time, or otherwise impede the investig ation, the authority concerned may be free to make 
determinations on the basis of the facts available. 
 
Article 22 
 
 Unless otherwise set forth in the Regulati ons, Articles 10, 11, 12,  13, 14, and 15, and 
paragraph 1 of Article 17 of “The Rules for the Ha ndling of Import Relief Cases” shall apply mutatis 
mutandis to the investigation conducted by the ITC as to whether there is injury to the domestic 
industry. 
 
Article 23 
 
 Following the preliminary determination, upon receipt of satisfactory undertakings from the 
government of the exporting country or the foreign e xporters to eliminate the effect of the injury 
sustained in the subsidy or dumping, or other effe ctive measures, so as to  remove the injury to 
domestic industry, the MOF may accept such undertakings. The MOF may also suggest the use of such undertakings to the governments of the exporting countries or the foreign exporters.   With respect to the undertaking accepted pur suant to the preceding paragraph, the MOF 
should request the government of the exporting count ry or the foreign exporters to periodically 
provide information relevant to the fulfilment of such undertakings.  
Article 24 
  Upon acceptance of the undertakings pursuant to the preceding Article, the MOF may 
suspend investigation and the provisional impositi on of a countervailing duty or anti-dumping duty, 
and notify the applicant and the known interest ed parties and make public a notice thereof. 
  Where the government of the exporting country or the foreign exporter is in violation of the undertakings, the authorities concerned shall continue  the investigation pursuant to Article 14.  In 
cases when the countervailing duty or anti-dumping du ty was not provisionally imposed or when such 
imposition was suspended, the MOF may, when necessary, provisionally impose the countervailing duty or anti-dumping duty after submission of facts av ailable to the Commission for determination.  
Where the imposition of a countervailing duty or anti-dumping duty is determined, the definitive 
duties may be levied on products imported not more than 90 days before the application of such a 
provisional imposition of the duties. However, the imposition of definitive duties shall not apply to 
products imported prior to the violation.   G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 11 
 
 
  Article 25 
 
 Where the MOF accepts the undertaking pursuant  to Article 23, the authorities concerned 
may continue the investigation ex officio, or at th e request of the government of the exporting country 
or the foreign exporters. 
  Where a negative determination of subsidy, dum ping or injury is made, the undertaking shall 
automatically lapse, except in cases wh ere such a determination is due in  large part to the existence of 
the undertaking. 
 
Article 26 
 
 For the purpose of the Regulations, a subsidy sha ll be deemed to exist if any of the following 
measures is provided directly or indirectly by the government or a public body of the exporting 
country to the specific enterprise or industry and thereby a benefit is conferred: 
  1. the provision of grants, loans or equity infusions.   2. the provision of loan guarantees.  
 3. the expungement or non-collection of taxes that are otherwise due. 
  4. the purchase of goods or provision of  goods or services other than for general 
infrastructure. 
 
 5. the provision of income or price support. 
  The following circumstances shall not be considered as conferring a benefit: 
  1. the provision of equity capital by the government or a public body of the exporting 
country is consistent with the usual i nvestment practice of the private sector. 
 
 2. there is no difference between the comme rcial loan that the firm receiving from the 
government or a public body of the exporting country and the commercial loan the firm could actually obtain on the market. 
 
 3. there is no difference between the amount that the firm receiving the guarantee pays 
on a loan guaranteed by the government or a public body of the exporting country and the amount the firm would pay on a comparable commercial loan absent the government guarantee. 
  4. the provision of goods or services by the government or a public body of the 
exporting country is no less than adequate  remuneration or the purchase of goods is 
no more than adequate remuneration.  The adequacy of remuneration shall be 
determined in relation to prevailing market conditions. 
 
Article 27 
 
 For the purpose of the Regulations, the amount of subsidy shall be determined by the amount received on a per unit basis of the imported product,  and any of the following circumstances shall be 
taken into account accordingly: G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 Page 12 
 
 
   1. where the expenses incurred are for obtai ning the subsidy, or where the export duty or 
tax is imposed by the exporting country to counteract the subsidy, such expenses, and 
duty or tax shall be deducted; 
 
 2. where the subsidy is not granted on the basis of the quantity of production or 
exportation, the total amount of the subsid y shall be allocated to the products 
produced or exported during a specific period of time; 
  3. where the subsidy is granted in the form  of a loan or loan guarantee, it shall be 
calculated by referring to the difference betw een the interest actually paid, or payable 
by the recipient, and the interest payable under the comparable commercial loan or loan guarantee in the exporting country. 
 
Article 28 
 
Any of the following circumstances shall not be tr eated as being in the ordinary course of trade 
pursuant to paragraph 2 of Article 68 of the Act, an d the price thereof shall not be considered as the 
normal value:   1. where the cost or price is affected because of an association or a compensatory 
arrangement between the purchaser and seller; or 
  2. where sales of the like product in the exporting country, country of origin or sales to a 
third country at prices below per unit costs of production plus administrative, selling and other relevant costs, which are made within an extended period of time, and all 
the weighted average selling prices of th e transactions are below the weighted 
average per unit cost, or that the volume of sales below per unit costs represents more than 20 per cent of the volume sold in th e transaction, and are at prices which do not 
provide for the recovery of all costs within a reasonable period of time. If prices which are below per unit costs at the time of  sale are above the weighted average cost 
during the period of investigation, such pr ices shall be considered to provide for 
recovery of costs within a reasonable period of time. 
 
Article 29 
 
 For the purpose of the Regulations, the term “in the absence of the comparable domestic 
selling price” as referred to in paragraph 2 of Artic le 68 of the Act indicates that the domestic market 
of the country of export or origin is subject to one of the following situations:   1. where there are no sales of the like pr oduct in the ordinary course of trade; 
  2. where the volume of sales of the like produc t is less than five per cent of the volume 
of sales of such product to the country. Ho wever, a lower ratio shall be acceptable if 
the sales are made under ordinary course of trade and are sufficient to provide for a 
proper comparison; and 
  3. where there is a particular market situation. 
 
Article 30 
 
 Pursuant to paragraph 2 of Article 68 of the Act, when there is no comparable domestic 
selling price and the constructed value is used  as the basis for comparison, the amounts for  G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 13 
 
 
  administrative, selling and other relevant expenses,  and for normal profits shall be based on actual 
data pertaining to production and sales of the foreig n producer or exporter in the ordinary course of 
trade of the subject product.  When such amounts cannot be determined on this basis, the amounts shall be determined on the basis of: 
 
 1. the actual expenses and profit incurred and realized by the foreign producer or 
exporter under investigation in respect of production and sales in the domestic market 
of the country of origin of the like product; 
 
 2. the actual weighted average expenses and profit incurred and realized by other 
foreign producers or exporters subject to investigation in respect of production and 
sales of the like product in the domestic market of the country of origin; 
  3. any other reasonable method, provided that  the amount for profit so established shall 
not exceed the profit normally realized by other exporters or producers on sales of the 
like product in the domestic market of the country of origin. 
 
Article 31 
 
 For the case in which there is no imported selli ng price or where it appears that the selling 
price of the product under investigation is unre liable because of association or a compensatory 
arrangement between the foreign exporter and the dom estic importer or a third party, the selling price 
may be constructed by the MOF on the basis of th e price at which the imported products are first 
resold to an independent buyer.  Article 32 
 
 For the purpose of the Regulations, the dumping ma rgin shall be determined by the difference 
between the selling price of imported products into this country and its normal price.  
  The aforementioned dumping margin may be est ablished on the basis of a comparison of a 
weighted average imported selling price into this count ry with a weighted average normal value, or by 
a comparison of the imported selling price and normal value on a transaction-by-transaction basis.  Where the imported selling price of the products ente ring into the country differs significantly among 
different purchasers, regions or time periods, the i ndividual selling price may be compared with a 
weighted average normal value. 
 
 With respect to the constructed selling pr ice of the goods imported into this country 
determined pursuant to Article 31, the following expenses incurred between importation and resale 
shall be deducted prior to making a comparison with the normal value:   1. insurance, transportation, handling, loading and unloading, and other relevant 
expenses; 
  2. customs duties and other taxes; and   3. reasonable profit or commission normally realized. 
 
 For the case in which products are not imported directly from the country of origin but are exported to this country from a third country, the du mping margin shall be determined by comparing 
the imported selling price of the products entering into  this country and the no rmal value in the third 
country pursuant to paragraph 1 above.  However,  a comparison may be made between the normal G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 Page 14 
 
 
  value in the country of origin, if the products are merely trans-shipped through the third country, or if 
such products are not produced in the third country, or  if there is no normal value for them in the third 
country.  
 When the country of origin or export is a non-market economy, the normal value shall be 
determined by comparing comparable selling pri ce or constructed value of the like product in a 
market economy third country, or by comparing comparable selling price of the like product from such a third country to another market economy count ry, or to this country; or where these are not 
possible, on such other reasonable basis as may be determined. 
 
Article 33 
 
 The determination of the dumping margin, pursuant to the preceding Article, shall, in 
addition, comply with the following: 
 
 1. comparison made between the imported se lling price into the country and the normal 
value, shall be made at the same level of trade and at as nearly as possible the same time.  
  2. adjustments shall be made for differences in physical characteristics, taxation, level of 
trade, transaction time, quantity, terms of sale, and other factors which affect price 
comparability. 
  When the comparison under subparagraph 1 above  requires a conversion of currencies, such 
conversion shall be made using the ra te of exchange on the date of sale.  The exporters shall be given 
an opportunity to adjust their imported selling price of the products entering into this country to 
reflect sustained movements in exchange rate durin g the period of investigation.  However, when a 
sale of foreign currency on forward markets is direct ly linked to the export sale involved, the rate of 
exchange in the forward sale shall be used.  
Article 34 
 
 The dumping margin as referred to in Article 32 shall be determined individually for each 
known foreign producer or exporter under investigation.   For the case in which the number of foreign producers, exporters, domestic importers, or 
types of products involved are so large as to make such a determination impracticable, the authorities 
concerned may limit their investigation either to a reasonable number of inter ested parties or products, 
or to parties of the largest percentage of the volum e of the exports from the subject country, so as to 
determine the individual dumping margin for each fore ign producer or exporte r under investigation. 
  Pursuant to the preceding paragraph, the MOF shall determine an individual dumping margin 
and applicable duty rate for any foreign producer or exporter not initially selected who submits the 
necessary information in time, except where the numbe r of producers or exporters is so large as to 
affect the investigation.  
Article 35 
 
 Any anti-dumping duty applied to foreign produ cers or exporters not included in the initially 
selected investigation, pursuant to the preceding Article, shall not exceed the weighted average 
dumping margin established with respect to th e foreign producers or exporters selected for 
investigation.  G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 15 
 
 
   Where any dumping margin established for sel ected foreign producers or exporters with 
respect to the circumstances referred to in subparagr aph 3 of paragraph 1 of Article 15, or Article 21, 
such dumping margin shall be disregarded in the cal culation of the aforementioned weighted average. 
 
 After the final determination is made and up on request, the MOF shall promptly carry out a 
review to determine individual margins of dumping for any producers or exporters of the exporting 
country who have not exported the subject produc t to the domestic market during the period of 
investigation, provided that these pr oducers or exporters can show that they are not related to any of 
the producers or exports in the exporting country who are subject to the anti-dumping duties on the 
product.  The MOF may request guarantees equivale nt to the amount of the anti-dumping duty from 
the date of the initiation of the review, and impose the anti-dumping duty on the subject product imported during the period of review based on the individual dumping margin determined. 
 
Article 36 
 
 With respect to the determination of whether the dumped or subsidized imports are causing injury to the domestic industry, the authorit y concerned shall conduct an investigation and 
comprehensive evaluation of the following:   1. the increase of the imports in question, in cluding either in absolute terms or relative 
to production or consumption in the country; 
  2. the effect of the imports in question on the market price of the domestic like product, 
including whether there has been a price unde rcutting, or whether the effect of such 
imports is to depress prices or prevent price increases, and whether the price of such 
imports is lower than the price of a domestic like product; 
  3. the impact of the imports in question on the domestic industry, including an 
evaluation of the following economic factors, having a bearing on the state of the industry: 
 
  (1) output; 
  (2) productivity;   (3) utilization of capacity;   (4) inventories;   (5) sales; 
  (6) market share; 
  (7) selling price;   (8) dumping margin of the subject products;   (9) profits;   (10) return on investments;   (11) cash flow; 
  (12) employment and wages; 
  (13) growth;   (14) ability to raise capital or investments;   (15) other relevant factors.  Article 37 
 
 In making a determination regarding the existen ce of a threat of material injury pursuant to 
Article 69 of the Act, the authority concerned s hould shall conduct a comprehensive evaluation on, 
inter alia, such factors as the rate of increase of s ubsidized or dumped imports, capacities, inventories, G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 Page 16 
 
 
  export potential of foreign producers or exporters, and imported selling price, and consider whether 
further subsidized or dumped imports are imminent  and material injury to the domestic industry 
would occur unless protective action is taken.  Article 38 
 
 In assessing the effect of subsidized or dumpe d imports in relation to the domestic industry, 
when available data permit the sep arate identification of that production on the basis of the production 
process, producers’ sales and profits, the authority  concerned shall take the conditions of the 
production of the domestic like product as the basis for assessment. 
  Where separate identification of  such production of the domestic like product pursuant to the 
preceding paragraph is not possible, the authorities concerned shall assess, according to information 
available, the effects of the subsidized or dumped imports by the examination of the production of the 
narrowest group or range of products, which includes the like product.  Article 39  
 Where imports of a product from more than one country are simultaneously subject to subsidy 
or anti-dumping investigations, th e authority concerned may assess the cumulative effects of such 
imports, after taking into account the following:  
 1. the absence of circumstances prescribed  in subparagraphs 2 and 3 and the first 
sentence of subparagraph 4 of paragraph 1 of Article 15. 
  2. the conditions of compe tition between imported products. 
 
 3. the conditions of competition between the imported products and the domestic like 
products. 
 
Article 40 
 
 Where a case concerning the provisional im position of a countervailing duty or anti-dumping 
duty is found to fall under one of the following situations, the counterva iling duty or anti-dumping 
duty may be levied retroactively from the date when the provisional imposition of such duty was 
applied:   1. a final determination of material injury to the domestic industry is made; 
 
 2. in the existence of the provisional imposition of a countervailing duty or anti-
dumping duty which has led to a final determin ation of a threat of material injury 
rather than material injury to the domestic industry. 
 
 Except the case concerning the provisional im position of countervailing duty and anti-
dumping duty as provided under subparagraph 2 of  the preceding paragraph, where a final 
determination of a threat of material injury to the domestic industry or material retardation of the 
establishment of such an industry is made, a countervailing duty or anti-dumping duty shall be imposed from the date of such determination, a nd any duty paid or security deposited for the 
provisional imposition of such a duty, shall be refunded or released by the MOF. 
  G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 17 
 
 
  Article 41 
 
 Where a final determination is negative, an y cash or securities deposited for the provisional 
imposition of a countervailing duty or anti-dum ping duty shall be refunded or released. 
 
 Where a case is determined to impose a c ountervailing duty or anti-dumping duty pursuant to 
paragraph 1 of the preceding Article, if the amount  of the definitive duty is higher than the duty 
provisionally imposed, the difference shall not be co llected; if such amount is lower than the duty 
provisionally imposed, the difference shall be refunded. 
 
Article 42 
 
 Where the imports subject to the imposition of a countervailing duty or anti-dumping duty are found to fall under one of the following situations, th e MOF may, after a determination has been made 
by the Commission, impose a countervailing duty or anti-dumping duty on the products imported not 
more than 90 days before the application of the provisional duty:   1.  the injury to the domestic industry is  caused by the massive imports in a relatively 
short time of a product benefiting from the subsidies; 
 
 2. the injury to the domestic industry is caused by the massive dumped imports of a 
product in a relatively short time, and ther e is a history of dumping which caused 
injury; 
  3. the injury to the domestic industry is caused by the massive dumped imports of a 
product in a relatively short time, and the domestic importers ar e, or should have 
been, aware that the exporters practice su ch dumping which would cause injury to the 
domestic industry. 
 
Article 43 
  Following the public notice of the imposition of a countervailing duty or anti-dumping duty, 
the MOF shall submit the case for a review as to whet her to conduct an investigation on the lapse or 
change of the findings, ex officio, or provided th at one year has elapsed since the imposition of the 
duty, upon request by the applicant or any inte rested party which submits positive  information 
substantiating the need for a review. 
 
 With respect to such case wher e the investigation has been de termined following examination 
and resolution by the Commission, the authorities con cerned shall, within nine months from the next 
day of the public notice of the investigation, ma ke a determination. Such period may be extended; 
however, the investigation shall normally be conclude d within twelve months of the date of initiation 
of the investigation, where necessary.  
 
 With respect to the case describ ed in the preceding paragraph, authorities concerned shall do 
as follows respectively:   1. where the case concerns whether the situ ations of subsidy or dumping have lapsed or 
changed, the MOF shall notify the interested  parties and make a public notice thereof 
following the completion of the investigation and the submission to the Commission for determination as to whether to terminate or change the imposition thereof; 
 G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 Page 18 
 
 
   2. where the case concerns whether the situa tions of injury to the domestic industry have 
lapsed or changed, the MOF shall immedi ately refer the case to the MOEA for the 
investigation and determination. At the tim e when the MOEA notifies the MOF of its 
results, the MOF shall notify the interested  parties and make a public notice thereof 
following submission to the Commission for examination and resolution as to 
whether to terminate or change the imposition; 
  3. where the case concerns whether the situa tions of subsidy or dumping, and injury to 
the domestic industry have lap sed or changed, the MOF sha ll, in addition to referring 
the part on injury to the domestic industry to the MOEA for investigation, complete 
the investigation as to whether the situati ons of subsidy or dumping have lapsed or 
changed, and submit the results of such investigation to the Commission for examination and resolution.  With respect  to the case determined by the Commission 
that the situations of subsidy or dump ing have lapsed, the MOF shall notify the 
MOEA to terminate the investigation, and further notify the interested parties and 
make a public notice to terminate the imposition thereof; 
  4. having completed the investigation as to  whether the situations of injury to the 
domestic industry have lapsed  or changed and made a de termination pursuant to the 
preceding subparagraph, the MOEA shall notif y the MOF of its result.  The result, 
together with the results of the investigati on as to whether the situations of subsidy or 
dumping have lapsed or changed, shall be  submitted by the MOF to the Commission 
for examination and resolution as to whether to terminate or change the imposition of 
duty. The MOF shall notify the interested parties and make a public notice thereof. 
 
 With respect to the investigation, examin ation and resolution pursuant to the preceding 
paragraph, the authorities concerned shall examin e whether the continued imposition of the duty is 
necessary to offset subsidy or dumping, for the case which concerns whether the situations of subsidy 
or dumping have lapsed or changed, and whether the injury would be likely to continue or recur if the 
duty were removed or varied, for the case which c oncerns whether the situation of injury to the 
domestic industry has lapsed or changed.  The Regulations, with the exception of Article 12 and 
Article 14, shall apply mutatis mutandis to the procedures of the investigation, examination and 
resolution pursuant to the preceding paragraph.   With respect to undertakings accepted under Ar ticle 23, the preceding paragraphs shall apply 
mutatis mutandis to the procedures concerning the i nvestigation and determination as to whether the 
situation of the undertakings has lapsed or varied. 
 
Article 44 
 
 The imposition of any countervailing duty or an ti-dumping duty shall be terminated on a date 
not later than five years from its imposition or from the date of the continued imposition under 
subparagraph 4, paragraph 3 of the preceding artic le, unless the authorities concerned determine that 
the expiry of the duty would be likely to lead to  continuation or recurrence of subsidization or 
dumping and of injury.   The duty shall remain in force pending a dete rmination pursuant to the preceding paragraph. 
 
 Prior to the time that the imposition of a countervailing duty or anti-dumping duty has 
exceeded four years and six months, the MOF shall make a public notice that the period of imposition is approaching five years.  If the interested par ties under subparagraph 3 of Article 10 consider that 
the continuous imposition is necessary, they shall make such an application within one month  G/ADP/N/1/TPKM/1/Suppl.1 
 G/SCM/N/1/TPKM/1/Suppl.1  Page 19 
 
 
  following the public notice thereof.  The MOF shal l submit the application to the Commission for 
decision as to whether to initiate the review.   With respect to the case where the initiation of investigation has been decided under the 
preceding paragraph, the MOF shall, within six mont hs from the date when the initiation of the review 
is publicized, complete the investigation into the subsidy and dumping under the provisions of 
paragraph 1 above and notify the MOEA.  Th e MOEA shall conduct the investigation under 
paragraph 1 from the date when the initiation of th e review is publicized, complete the investigation 
within two months from the date after its receipt of the MOF notice, and notify the MOF.  The MOF 
shall, within ten days from the next day of receipt  of the notice, submit the case to the Commission for 
decision.  Where it is decided that the imposition shall continue, the MOF shall notify the known interested parties and make a public notice thereof.   The period prescribed in the preceding paragra ph may be extended, if necessary; however, the 
period of investigation by the MOF shall not exceed ten months, and that by the MOEA shall not 
exceed twelve months.  The Regulations, except fo r Article 12 and Article 14, shall apply mutatis 
mutandis with respect to th e procedures used thereof. 
  Where the interested parties pursuant to pa ragraph 3 above do not provide substantiated 
evidence, or do not submit application within the prescribed period pursuant to paragraph 3, or the 
Commission decides not to initiate the review, or not  to continue the imposition, the MOF shall notify 
the known interested parties and make a public notice thereof.   With respect to the case where undertakings ha ve been accepted pursuant to Article 23, the 
provisions of paragraph 1 and para graphs 3, 4, 5 and 6 above sha ll apply mutatis mutandis to the 
procedures used thereof.  
 
Article 45 
  For the purpose of implementing the provisions  of the preceding two articles regarding 
investigation of injury and determination as to  whether the termination or change of the 
countervailing duty or anti-dumping dut y would be likely to lead to the continuation or recurrence of 
injury to the domestic industry, the MOEA shal l make a comprehensive evaluation based on the 
following factors:  
 1. whether the increase of imports would be likely to continue or recur; 
  2. whether the effects of imports on market  prices of the domestic  like products would 
be likely to continue or recur; 
  3. whether the injury to the domestic industry caused by the imports would be likely to 
continue or recur. 
 Article 46 
 
 Where the imported product subject to the imposition of a countervailing duty or anti-dumping duty, is further processed and exported, su ch duty shall not be refunded; however, where the 
imported product is re-exported in its  original form which meets the requirements for an exemption of 
customs duty under the Act, such duty may be refunded. 
 G/ADP/N/1/TPKM/1/Suppl.1 
G/SCM/N/1/TPKM/1/Suppl.1 Page 20 
 
 
  Article 47 
 
 Where it is found that the producers or exporters of the exporting country provide or 
compensate the amount of the countervailing duty or anti-dumping duty which is paid by the duty-
payer, such amount shall be further imposed as a countervailing duty or anti-dumping duty. 
 
Article 48 
 
 With respect to issues related to investigati on, and determination of the case pursuant to the 
Regulations, the authorities concerned may refer to relevant international agreement or customary 
practices, provided that there are no specific provisi ons prescribed in the Act or in the Regulations.  
 
Article 49 
  With respect to the making of public noti ces pursuant to the Regulations, the authorities 
concerned shall publicize each such notice on their we bsite respectively or by all means available for 
public viewing or information.  
Article 50 
  The Regulations shall become effec tive from the date of promulgation. 
  
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