RESTRICTED
WORLD TRADE G/ADP/Q1/THA/6
G/SCM/Q1/THA/6
ORGANIZATION 15April 1997
(97-1598)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from HONG KONG
toTHAILAND1
Thefollowing communication, dated 10April 1997, hasbeenreceived fromtheHong Kong
Economic andTrade Office.
_______________
Legal Status oftheNotification
1. Thailand ’snotification contains aNotification oftheMinistry ofCommerce ontheImposition
ofAnti-Dumping andCountervailing Duties B.E.2539, which comes intoforceon14September 1996.
Question:
WhatisthelegalstatusoftheNotificationontheImpositionofAnti-DumpingandCountervailing
Duties B.E.2539?
Interested Parties
2. Article 6.12oftheAgreement provides thattheauthorities shallprovide opportunities for
industrial users oftheproduct under investigation andforrepresentative consumer organizations to
provide information which isrelevant totheinvestigation. Itisnotapparent thattheNotification has
provided forsuchopportunities.
Question:
Howwould Thailand provides opportunities forindustrial users andrepresentative consumer
organizations tosubmit relevant information?
Sales below Costs
3. Article 6.3oftheNotification provides thatsalesbelow production costsplusadministration,
selling andgeneral costs maybetreated asnotbeing intheordinary course oftrade andmaybe
disregarded indetermining normal value ifitisdetermined thatsuchsalesaremade within anextended
period oftimeinsubstantial quantities andareatprices which donotprovide fortherecovery ofall
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costswithin areasonable period oftime. Itappears thattheNotification doesnotsetoutwhatconstitutes
"extended period oftime" and"substantial quantities".
Footnotes 4and5oftheAgreement elaborate onthemeaning of"extended period oftime"
and"substantial quantities".
Questions:
How would Thailand interpret "extended period oftime" and"substantial quantities" in
Article 6.3oftheNotification?
Comparison ofNormal Value andExport Prices
4. Article 6.6oftheNotification provides thatthedumping margin perunitshallbedetermined
bythethree methods setoutunless there isareasonable ground touseother methods. Oneofthe
methods setoutisacomparison ofweighted average normal value andprices ofindividual export
transactions. Thismethod could beusediftheother twomethods would notreflect thefulldegree
ofdumping.
Article 2.4.2 oftheAgreement onlyprovides forthreemethods ofcomparison. Acomparison
ofweighted average normal value andprices ofindividual export transactions could bemade ifan
explanation isprovided astowhydifferences inexport prices cannot betaken intoaccount appropriately
bytheuseofaweighted-average-weighted-average ortransaction-to-transaction comparison.
Question:
WouldThailandexplainwhatothermethodscanbeusedapartfromthethreemethodsprescribed
inArticle 6.6? Would Thailand alsoclarify under what circumstances would theyconsider a
weighted-average-weighted-average ortransaction-to-transaction comparison would notreflect thefull
degree ofdumping?
Definition ofDomestic Industry
5. Article 8provides thatanti-dumping surcharge maybelevied onallthedumped products
imported intoThailand when itisnotpracticable tolevyanti-dumping surcharge ontheproducts
consigned forfinalconsumption tooneofthecompetitive markets.
Under Article 4.2oftheAgreement, when theconstitutional lawoftheimporting Member
doesnotpermit thelevying ofanti-dumping duties inacertain area,theimporting Member may,subject
tocertain conditions, levytheanti-dumping duties without limitation.
Question:
Does theconstitutional lawofThailand permit thelevying ofanti-dumping duties inacertain
area?
Power tomake Rules andProcedures
6. Articles 6.6and10.2enable theDepartment ofForeign Trade toprescribe therules and
procedures forsampling andthesubmission ofpetitions. Article 9.3alsoallows theDepartment ofG/ADP/Q1/THA/6
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Foreign Trade toprescribe what constitutes ademinimis dumping margin andwhat constitutes a
negligible volume ofdumped imports.
Question:
Have anyprovisions beenmade under Articles 6.6,Article 9.3and10.2? Ifyes,would they
benotified inaccordance withArticle 18.5oftheAgreement?
Public Notification ofInvestigation
7. Article 12.1.1 oftheAgreement requires thatapublic notice oftheinitiation ofaninvestigation
should contain, orotherwise make available through aseparate report, adequate information including
thedateofinitiation oftheinvestigation, thebasis onwhich dumping isalleged intheapplication,
asummary ofthefactors onwhich theallegation ofinjury isbased, andtheaddress towhich
representations byinterested parties should bedirected.
ItisnotclearfromArticle 11.1oftheNotification whether thegeneral initiation notice tobe
published inadaily newspaper would contain alltheabove information. TheArticle alsodoesnot
require theDepartment ofForeign Trade toinform theGovernment oftheexporting Member inwriting.
Question:
WillalltheinformationstipulatedinArticle12.1.1oftheAgreementbepublishedintheinitiation
notice? WilltheGovernment oftheexporting Member benotified oftheinitiation?
Undertakings
8. Article 13.2oftheNotification provides thatundertakings maybeaccepted onlyafterthe
Committee onDumping andSubsidies hasmade apreliminary determination. Article 8.2ofthe
Agreement provides thatpriceundertakings shallnotbesought oraccepted unless theauthorities have
made apreliminary affirmative determination ofdumping andinjury.
Question:
Would undertakings beaccepted onlyaftertheCommittee onDumping andSubsidy hasmade
apreliminary affirmative determination? Would undertakings besought before that?
KeyIssues intheWTO ADAgreement found silent intheThaiNotification
9. Numerous provisions oftheAgreement arenotfeatured intheNotification, orthecodification
maynotbeadequate. Notable examples areasfollows:
- start-up costs (Article 2.2.1)
- administrative, selling andgeneral costs (Article 2.2.2)
- exchange rates(Article 2.4.1)
- confidential information (Article 6.5)
- procedures foron-site verification (Article 6.7andAnnex I)G/ADP/Q1/THA/6
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- refund procedures (Article 9.3.2)
- procedures regarding useofbestinformation available (Annex II)
Questions:
(a) Intheabsence ofexplicit domestic provisions reflecting theabove Agreement provisions,
howwillThailand ensure compliance withtheAgreement?
(b) WillThailand contemplate further legislative steps toensure theconformity ofits
legislation andadministrative procedures withtheprovisions oftheAgreement, in
accordance withArticle 18.4?