. /.   WORLD TRADE  
ORGANIZATION  TN/RL/GEN/148 
29 June 2007 
 (07-2768) 
Negotiating Group on Rules Original:   English 
  
 
PROPOSAL ON STANDING OF THE APPLICATION  
 
Communication from China
1 
  
 The following communication, dated 28 June 2007,  is being circulated at the request of the 
Delegation of China.    
_______________ 
 
 
Issues and Recommendations  
 
 From the point of view of China, the sta nding requirements on application as provided in 
Article 5.4 of the ADA should be clarified on the following aspects: 
 
 There exist certain ambiguities with regard to the requirements:   
 
1. The time span of "the total production" and "collective output" is not clear .  Should it be 
defined as a monthly/quarterly total production, or  annual total production, or total production in 
previous 2-3 years (full statistical/f inancial) before the application is filed?  In the opinion of China, 
the time span should be appropriately defined so as  to avoid short-term effects that may distort the 
real situation or be abused for industry-specific interests.    2. The source statistics for "the total production" and "collective output" is not clear
.  Should 
these statistics provided by the domestic producers th emselves be accepted as evidence of standing?  
In the opinion of China, the production/output statis tics, if provided by domestic producers, should be 
certified by an independent accounting/auditing agency.  3. It is not clear whether total sales volume c ould be taken as a substitute for "total production"
 
where it is difficult, but not impossible, to have an official data of the former .  
 4. How to define "domestic industry"? Can it be defined as a major proportion of the total 
domestic producers of those products as pr ovided in Article 4.1 of the ADA?   
 
 China proposes to amend Article 5.4 as follows:   
                                                     
 
1 This paper does not purport to represent China’s fi nal position on this matter and China reserves the 
right to make further proposals.   TN/RL/GEN/148 
Page 2  
 
  Proposed Text
 
 
 Article 5.4:  An investigation shall not be initia ted pursuant to paragraph 1 unless the 
authorities have determined, on the basis of an exam ination of the degree of support for, or opposition 
to, the application expressed13 by domestic producers of the like product, that the application has been 
made by or on behalf of the domestic industry.14  The application shall be considered to have been 
made "by or on behalf of the domestic industry" if it is supported by those domestic producers whose 
collective output constitutes more than 50  per cent of the average  total annual  production in the last 
three years∗ of the like product produced by that porti on of the domestic industry expressing either 
support for or opposition to the application.  Howe ver, no investigation shall be initiated when 
domestic producers expressly supporting the application account for less than 25  per cent of total 
production of the like product produced by the  all domestic industry  producers .  For the purpose of 
this paragraph, the collective output and total pr oduction of the like product shall be based on 
sum of individual amounts in the accounting a nd/or production records of the domestic 
producers of the like product and audited severa lly by certified auditors of the importing 
member .   
 
 
__________ 
 
                                                      
 13 In the case of fragmented in dustries involving an exceptionally large number of producers, 
authorities may determine support and opposition by using statistically valid sampling techniques.    
14 Members are aware that in the te rritory of certain Members employees of domestic producers of the 
like product or representatives of those employees may make or support an application for an investigation 
under paragraph 1.   
 ∗ Footnote added: for the purpose of paragraph 4, the output and/or production shall be those in 
the most recent 3 years/36 months before filing to the authority of the written application by the 
applicant, or the longest possible period when the ou tput data are available.  Total sales of the same 
period shall not be used as a substitute for the output and production.