WORLD TRADE  
ORGANIZATION  G/ADP/Q1/CHN/51 
G/SCM/Q1/CHN/51 21 March 2005 
 
(05-1156) 
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 
 
Questions Posed by the UNITED STATES Regarding the Notification  
of the PEOPLE'S REPUBLIC OF CHINA  
 
 The following communication, dated 17 March 2005, is being circulated at the request of the Delegation of the United States.  
_______________ 
 
 
The United States thanks China for the notif ication of its revised Foreign Trade Law
1 and 
anti-dumping and countervailing duty regulations2.   
 
Q1. Article 4 of the anti-dumping (AD) regulati ons states that normal value can be calculated 
under certain conditions with reference to third-c ountry sales or the cost of production of the like 
product "plus a reasonable amount for expenses and for profits".  In light of the absence of any 
provision in the regulations corresponding to Artic le 2.2.2 of the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs  and Trade 1994 (ADA), please elaborate on how a 
reasonable amount for expenses a nd profits will be determined. 
 
Q2. Please explain the role of the Ministry of  Agriculture in the injury determination of 
agricultural AD and countervailing duty (CVD) inves tigations, as referenced in Article 7 of the AD 
regulations and Article 7 of the CVD regulations.  Please identify the regulations or other measures 
that govern the interaction between the Ministry of Agriculture and the Ministry of Commerce in such 
proceedings.  
Q3.  Please describe how the factors of a "possibility of a significant increase in dumped imports " 
specified in Article 8(1) of the AD regulations  and a “possibility of a significant increase in 
subsidized imports” specified in Article 8(2) of the CVD regulations will be assessed.  How will this 
analysis differ from the analysis of capacity and inventories contemplated by Article 8(4) of the AD regulations and Article 8(5) of the CVD regulati ons?  Note that Article 3.7(i) of the ADA and 
Article 15.7(ii) of the Agreement on Subsidi es and Countervailing Measures (ASCM) refer to "the 
likelihood of substantially increased importation " (emphasis supplied).  What difference in meaning 
is intended by the phrasing used in Articles 8(1) a nd 8(2) of the respective regulations, as compared to 
the phrasing used in Articles 3.7(i) and 15.7(ii) of the Agreements?    
                                                     
 
1 G/ADP/N/1/CHN/2/Suppl.4 and G/SCM/ N/1/CHN/1/Suppl.4 (1 December 2004) 
2 G/ADP/N/1/CHN/2/Suppl.3 and G/SCM/ N/1/CHN/1/Suppl.3 (20 October 2004)   
  
 
 G/ADP/Q1/CHN/51 
G/SCM/Q1/CHN/51 Page 2 
 
 
 Q4.  With regard to Article 8(2) of the AD regul ations and Article 8(3) of the CVD regulations, 
please clarify whether, in the situation of price undercutting, prices will be compared to prices of a like product of the importing member in accordance with ADA Article 3.2 and ASCM Article 15.2.   
Q5.  Article 8(3) of the AD regulations and Artic le 8(4) of the CVD regulations do not identify 
which factors China 's administering authority will consider in  conducting its examination of impact.  
What “relevant economic factors” will the authority c onsider?  Does China examine all impact factors 
specified in ADA Article 3.4 and ASCM Article 15.4?   Q6.  In regard to Article 8(4) of the AD regula tions and Article 8(5) of  the CVD regulations, does 
China’s examination of production capacity or ex port capacity of the exporting country focus on 
whether there is unused capacity, or an imminent substantial increase in capacity, in the exporting 
country, as specified in ADA Article 3.7(ii) and ASCM Article 15.7(iii)?  If not, on what does it focus?  Q7.  In regard to Article 8(5) of the AD regul ations and Article 8(6) of the CVD regulations, 
please elaborate on what "other factors " will be examined. 
 
Q8.  Article 14 of the AD regulations and Artic le 14 of the CVD regulations do not contain any 
provision specifying that an application made on be half of the domestic industry must identify the 
industry on behalf of which it is made by a list of  all known producers of the like product.  How does 
China ensure that any such app lication complies with the requirements of the last sentence in ADA 
Article 5.2(i) and/or of ASCM Article 11.2(i)?    
Q9.  In regard to Article 19 of the AD regulati ons and Article 19 of the CVD regulations, how will 
the Ministry of Commerce provide the full text of  the written application to the known exporters and 
to the authorities of the exporting Member?  Will the Ministry also make such full text available, upon 
request, to other interested parties involve d, as required by ADA Article 6.1.3 and ASCM 
Article 12.1.3, and if so, how?    
Q10. Please describe the steps taken by the Minist ry of Commerce to identify known exporters for 
notification under ADA Article 6.1 and ASCM Article 12.1.  
Q11.  Would China please explain what is meant by the "other interested organizations and parties" 
referenced at the conclusion of the first paragraph of Article 19 of the AD regulations and Article 19 
of the CVD regulations, and identify who those organizations/parties might be?  
Q12.  In regard to Article 16 of the AD regula tions and Article 16 of the CVD regulations, would 
China please explain what constitutes "receipt of the application " for the purposes of the 60-day 
deadline to initiate an investigation? 
 Q13.  In regard to Article 20 of the AD regulati ons and Article 20 of the CVD regulations, please 
explain what opportunities are provided for interested pa rties to meet parties with adverse interests so 
that opposing views may be presented and rebu ttal arguments offered, as required by ADA 
Article 6.2.  In addition to public hearings, does the Ministry of Commerce accept any oral 
communication as evidence in anti-dumping proceedings ?  If so, how does it maintain a record of 
such communications and make such informati on known to other interested parties?   
 Q14.  In regard to on-the-s pot verification, will China please confirm that the administering 
authority must obtain the agreement of the firm s concerned, as specified in ADA Article 6.7 and 
ASCM Article 12.6?  G/ADP/Q1/CHN/51 
 G/SCM/Q1/CHN/51 
 Page 3 
 
 
  
Q15. With regard to Article 22 of the AD  regulations and Article 22 of the CVD regulations, what 
measures has the Ministry of Commerce taken to  ensure that non-confidential summaries of 
confidential documents submitted to or generated by the Ministry are made available to interested 
parties pursuant to ADA Article 6.5.1 and ASCM Article 12.4.1?  
 Q16.  In regard to Article 23 of the AD regula tions and Article 23 of the CVD regulations, would 
China please explain what measures the Ministry of  Commerce has in place to provide prompt and 
timely access to information, as required by ADA Articles 6.1.2 and 6.4 and ASCM Articles 12.1.2 
and 12.3. 
 Q17.  Do the provisions of Article  27 of the AD regulations and Article  28 of the CVD regulations 
apply to preliminary as well as final determinations?  
Q18.  In regard to Article 30 of the AD re gulations, would China please confirm that the "special 
circumstances " under which a provisional measure may be exte nded up to nine months refers only to 
the examination of whether a duty lower than the ma rgin of dumping would be sufficient to remove 
injury, as provided in ADA Article  7.4.  Are there any other "special circumstances " which could 
justify such an extension? 
 Q19.  Article 37 of the AD regulations states that "[i]mposition and collection of anti-dumping 
duties shall be in the public interest".  Article 38 of the CVD regulations states that "[i]mposition and 
collection of countervailing duties shall be in the pu blic interest".  Do these statements represent a 
requirement for authorities to determine whether duties are in the public interest  in a particular case, 
or a regulatory conclusion that duties are always  in the public interest?  If this represents a 
requirement to conduct a public interest test, would China please clarify the cr iteria for such a test, 
which parties are considered to constitute the “ public” for purposes of the test, and whether this 
determination will be made by the Ministry of Commerce or State Council Tariff Commission?  In 
applying any public interest test, do Chinese authoriti es consider whether the imports to which duties 
may be applied are from a developing country?  
Q20.  Will a determination of the public inte rest be subject to challenge in the people 's court under 
Article 53 of the AD regulations a nd Article 52 of the CVD regulations , and, if so, which parties may 
bring such a challenge?  If such a challenge  is permitted, what standard will the people 's court apply 
in determining the merits of an argument that th e authorities have not properly determined the public 
interest? 
 
Q21.  Article 44 of the AD regulations specifies that measures such as “import registration” may be 
taken under certain circumstances.  What is meant by "import registration" and what are the rules 
governing this procedure?  How is th is consistent with ADA Article 10.6? 
 Q22.  Will interest be paid on any refund made  under Article 46 of the AD regulations?  How will 
the amount of interest be calculated?  
Q23.  In regard to Article 47 of the AD regulati ons, what rate of duty w ill be applied to a new 
exporter which does not apply for a separate dete rmination of the margin of dumping?  For new 
exporters which do apply for a separate determinati on of the margin of dumping, how will the level 
and form of “measures” under Article 28 of the AD regulations  be determined?  
 
Q24.  Article 53 of the AD re gulations and Article 52 of the CVD regulations allow for 
administrative reconsideration of anti-dumping an d countervailing duty decisions.  Would China G/ADP/Q1/CHN/51 
G/SCM/Q1/CHN/51 Page 4 
 
 
 please specify with whom an application for admini strative reconsideration should be filed and the 
procedural requirements for administrative reconsideration?  Would China please further clarify whether a request for administrative reconsiderati on may proceed simultaneously with the filing of a 
lawsuit in the people =s court?  Can a determination in an ad ministrative reconsideration be appealed 
to the people 's court? 
 
Q25.  Please describe the "appropriate measures " which may be taken to prevent circumvention 
under Article 55 of the AD Regulations and Article  54 of the CVD regulations.  What procedures will 
be followed?  How does China define the term "circumvention "? 
 
Q26.  Article 56 of the AD regulations and Artic le 55 of the CVD regulations specify that China 
may take "corresponding measures " against any country that "discriminatorily " imposes anti-
dumping or countervailing measures against exports from China.  Based on what authority in the 
ADA and ASCM could China take such action?  Under what circumstances does China foresee 
applying this provision (i.e. what type of action w ould be considered “discriminatory” within the 
meaning of Articles 55 and 56)?  What sorts of acti ons would be taken agains t another country?  Is 
there any Chinese law or regulation  prohibiting use of Articles 55 and 56 prior to exhausting other 
remedies such as the WTO dispute settlement process?  Q27.  In regard to Article 58 of the AD regu lations and Article 57 of the CVD regulations, are 
implementing measures currently  being developed?  Please explain the topics covered by any such 
measures.  
__________