WORLD TRADE  
ORGANIZATION  G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 5 April 2004 
 
(04-1528) 
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 
 
JAPAN 
 
Supplement  
   The following communication, dated 2 April 2004, is being circulated at the request of the 
Delegation of Japan. 
 
_______________ 
 
  Upon instructions from my authorities, I am sending you herewith Japan's notification, which 
informs the amendments of following instruments:  Cabinet Order Relating to Countervailing Duty 
(Cabinet Order No. 415, December 1994, amended by  the Cabinet Order No. 104, March 2004), Cabinet 
Order Relating to Anti-Dumping Duty (Cabinet Order No. 416, December 1994, amended by the 
Cabinet Order No. 104, March 2004) and The Guidelines  for Procedures Relating to Countervailing and 
Anti-dumping Duties. 
 . G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 Page 2 
 
 
  
[Provisional Translation]   I. CABINET ORDER RELATING TO COUNTERVAILING DUTY (NOTIFIED AS 
G/SCM/N/1/JPN/2, G/SCM/N/1/JPN/2/CORR.1, G/SCM/N/1/JPN/2/CORR.2) 
Article 2 is deleted and re placed by the following. 
 
(Domestic Industry) 
 
Article 2
 
 1. The term "domestic industry" as provided for in  paragraph 1 of Article 7 of the Law shall be 
interpreted as referring to domestic producer whose collective output of the like products constitutes a 
major proportion of the total domestic production of those products. 
 
2. The domestic producers referred to in the pr eceding paragraph shall not include the producers 
who have one or more of the rela tionships referred to in the following subparagraphs, or the producers 
who have imported those products or the like products after the date of six months prior to the date 
when the request has been made under the provisions of paragraphs 5, 18 (including the case where 
the provisions of this paragraph are applied by paragraph 28)  or 23 of Article 7 of the Law or the date, 
in case such request has not been made under the se provisions, when the investigation has been 
initiated under the provision of pa ragraph 6, 19 (including the case where the provisions of this 
paragraph are applied by paragra ph 28) or 24 of Article 7 of the Law , except in the case where the 
import was in a small amount.  However, this para graph is not applied if the producers have imported 
those products or the like products and submitted th e evidence to show that their major business 
concerning those products and the like products is th e domestic production of the like products, or  the 
producers who have one or more of  the relationships referred to in the following subparagraphs and 
submitted the evidence to show that  the effect of such relationship does not cause the producer to 
behave differently from other producers who ha ve no relations referred to in the following 
subparagraphs, and if such evidence in  each cases is recognized as appropriate. 
 
(1)  a relation in which the producer controls direc tly or indirectly the supplier or importer of that 
product,  (2)  a relation in which the producer is controlled di rectly or indirectly by supplier or importer of 
that product, 
 (3)  a relation in which the producer is controlled directly or indirectly by a third person who 
directly or indirectly controls supp lier or importer of that product, or 
 (4)  a relation in which supplier or importer of that  product controls together directly or indirectly 
a third person. 
 
  G/ADP/N/1/JPN/2/Suppl.4 
 G/SCM/N/1/JPN/2/Suppl.4  Page 3 
 
 
 II. CABINET ORDER RELATING TO ANTI-DUMPING DUTY (NOTIFIED AS 
G/ADP/N/1/JPN/2, G/ADP/N/1/JPN/2/ CORR.1, G/ADP/N/1/JPN/2/CORR.2, 
G/ADP/N/1/JPN/2/SUPPL.1, G/ADP/N/1/JPN/2/SUPPL.3) 
Article 4 is deleted and re placed by the following. 
 
(Domestic Industry) 
 Article 4
 
 
1. The term "domestic industry" as provided for in  paragraph 1 of Article 8 of the Law shall be 
interpreted as referring to domestic producer whose collective output of the like products constitutes a 
major proportion of the total domestic production of those products.  2. The domestic producers referred to in the pr eceding paragraph shall not include the producers 
who have one or more of the rela tionships referred to in the follo wing subparagraphs or the producers 
who have imported those products  af ter the date of six months prior to the date when the request has 
been made under the provisions of paragraphs 4,  21 (including the case where the provisions of this 
paragraph are applied by paragraph 31) or 26 of Article 8 of the Law  or the date, in case such request 
has not been made under these provisions, when th e investigation has been initiated under the 
provision of paragraph 5, 22 (including the case wher e the provisions of this paragraph are applied by 
paragraph 31) or 27 of Article 8 of the Law, except in the case where the import was in a small 
amount.  However, this paragraph is not applied if the producers have imported those products and 
submitted the evidence to show that their majo r business concerning those products and the like 
products is the domestic production of the like products,  or the producers who have one or more of the 
relationships referred to in the following subparagraphs and submitted the evidence to show that the 
effect of such relationship does not cause the producer  to behave differently from other producers who 
have no relations referred to in the following subparagraphs, and if  such evidence in each cases is 
recognized as appropriate.  (1) a relation in which the producer controls directly  or indirectly the supplier or importer of that 
product, 
 
(2)  a relation in which the producer is controlled di rectly or indirectly by supplier or importer of 
that product,  (3)  a relation in which the producer is controlled directly or indirectly by a third person who 
directly or indirectly controls supp lier or importer of that product, or 
 (4)  a relation in which supplier or importer of that  product controls together directly or indirectly 
a third person.   III. THE GUIDELINES FOR PROCEDURES RELATING TO COUNTERVAILING AND 
ANTI-DUMPING DUTIES (NOTIFIED AS G/ADP/N/1/JPN/2/SUPPL.2, G/ADP/N/1/JPN/2/SUPPL.3) 
2.  Definitions 
 
 
 The phrase “"ASCM","ADA"” is inserted after th e term “terms”.  The phrase “" Agreement 
on Subsidies and Countervailing M easures"," Agreement of Implemen tation of Article VI of the 
General Agreement on Tariffs and Trade 1994"” is inserted after the term “mean”. G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 Page 4 
 
 
  
5.  Domestic Industry 
 
  The following subparagraphs ar e added after “subparagraph (2)”. 
 
(3)  Relation to control  (Cabinet Order Relating to Countervailing Duty:  Article 2, paragraph 2.  Cabinet Order Relating to Anti-Dumpi ng Duty:  Article 4, paragraph 2.) 
 
 The term "control" as provided for in both the proviso to paragraph 2 of Article 2 of the Cabinet 
Order Relating to Countervailing Duty and the proviso to paragraph 2 of Article 4 of the 
Cabinet Order Relating to Anti-Dumping Duty sh all apply to any of the following cases, based 
on Japan’s GAAP (Generally Acce pted Accounting Principles). 
 
(i) When a company holds in its own account more than half of the voting rights in 
another company;
 
 
(ii) When a company holds from 40 percent to half of the voting rights, and meets any of 
the conditions in the following subparagraphs: 
 
  A Combination of the voting rights held by the company's own account and the voting 
rights held by those who are expected to exercise the voting rights in the same way as the company based on the close relationshi p through investment, personnel affairs, 
capital, technology, transactions, and so forth, and the voting rights held by those who 
have agreed to exercise their voting righ ts in the same way as the company exceeds 
the majority of voting rights of the other company; 
 
B Current or former executives or employees of the company who can influence on the 
decisions on financial and operating or business policies of the other company constitute the majority of the board of directors or equivalent governing body of the 
other company; 
 
C There are contracts or other agreements th at control important fi nancial and operating 
or business policies of the other company; 
 
D The company finances the majority of the loans of the other company;  and 
 
E There are other facts that indicate the company can exercise control over the decision-
making body of the other company. 
 
(iii) When a combination of the voting right s held by the company's own account and the 
voting rights held by those who are expected to exercise the voting rights in a same way 
as the company based on the close relations hip through investment, personnel affairs, 
capital, technology, transactions, and so forth, and the voting rights held by those who have agreed to exercise their voting rights in the same way as the company exceeds the 
majority of voting rights of the other comp any, and meets any of the conditions of 
subparagraphs B to E of the preceding paragraph (ii) . 
  G/ADP/N/1/JPN/2/Suppl.4 
 G/SCM/N/1/JPN/2/Suppl.4  Page 5 
 
 
 (4)  Exception of producers who have imported such  products or who have re lations with importers 
or producers of such imported products.  (Cabinet Order Relating to Countervailing Duty:  Article 2, the proviso to paragraph 2.  
Cabinet Order Relating to Anti-Dumping Duty:  Article 4, the proviso to paragraph 2.) 
  (i) The judgment as to whether producers "b ehave differently from other producers who 
have no relations (non-related producers)" as set  out in the proviso to paragraph 2 of 
Article 2 of the Cabinet Order Relating to Countervailing Duty and the proviso to 
paragraph 2 of Article 4 of the Cabinet Or der Relating to Anti-Dumping Duty shall be 
made on the basis of the following: 
   A Actual conditions of transactions with related parties regarding volume and uses of 
such products, etc., 
 
  B Stance on support of application under para graphs 5, 18 or 23 of Article 7 of the 
Law, or paragraphs 4, 21 or  26 of Article 8 of the Law, 
   C Any other relevant matters which shows that direct or indirect control does not 
require to behave differently from other producers, 
 
 (ii)   The judgment as to whether a producer’s " major business concerning those 
 products and the like products is domestic  production of the like products" as set out 
 in the proviso to paragraph 2 of Artic le 2 of the Cabinet Order Relating to 
 Countervailing Duty and the proviso to pa ragraph 2 of Article 4 of the Cabinet 
 Order Relating to Anti-Dumping Duty shall be made on the basis of the following: 
   A Actual conditions of imports regard ing suppliers, volumes and purposes of such 
imported products, etc., 
   B Stance on support of application under para graphs 5, 18 or 23 of Article 7 of the 
 Law, or paragraphs 4, 21 or  26 of Article 8 of the Law, 
   C Any other relevant matters which shows that major business concerning those 
 products and the like products is do mestic production of the like products. 
 
New Paragraph 7
 
  The following paragraph is added after “paragraph 6”.
1 
 7.   Exception on a new supplier w ho has relations with other suppliers
 
 
(Cabinet Order Relating to Anti-Dumping Duty:  Article 6.)   The term "control" as provided for in Article  6 of the Cabinet Order Relating to Anti-
Dumping Duty shall apply in any of the fo llowing cases, based on Japan’s GAAP (Generally 
Accepted Accounting Principles). 
 
                                                     
 
 1 The numbers of following paragraphs are adjusted according to the insertion of new paragraphs. (e.g., 
the former paragraph 7 becomes paragraph 8.) 
 G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 Page 6 
 
 
  (i) When a company holds in its own account more than half of the voting rights in 
another company; 
  (ii) When a company holds from 40 percent to  half of the voting rights, and meets any of 
the conditions in the following subparagraphs: 
   A Combination of the voting rights held by the company's own account and the voting 
rights held by those who are e xpected to exercise the voting rights in the same way as 
the company based on the close relationshi p through investment, personnel affairs, 
capital, technology, transactions, and so forth, and the voting rights held by those 
who have agreed to exercise their voti ng rights in the same way as the company 
exceeds the majority of voting rights of the other company; 
   B Current or former executives or employees of the company who can influence on the 
decisions on financial an d operating or business policies of the other company 
constitute the majority of the board of directors or equivalent governing body of the other company; 
   C There are contracts or other agreements that control important financial and operating 
or business policies of the other company; 
 
  D The company finances the majority of the loans of the other company;  and    E There are other facts that indicate the company can exercise control over the decision-
making body of the other company. 
 
 (iii) When a combination of the voting right s held by the company's own account and the 
voting rights held by those who are expected  to exercise the vot ing rights in a same 
way as the company based on the close re lationship through investment, personnel 
affairs, capital, technology, transactions, and so forth, and the voting rights held by 
those who have agreed to exercise their voting rights in the same way as the company exceeds the majority of voting rights of the other company, and meets any of the 
conditions of subparagraphs B to E of the preceding paragraph (ii) . 
 8. Initiation of investigation, etc.
 
 
 The number “9” is changed into “15” in the phrase “except for paragraph 9 hereunder”. 
 
New Paragraph 10, 11, 12, 13 and 14  
  The following paragraphs are added after "paragraph 9”.  10.   On-the-spot investigation
 
 
(ASCM:  Article 12, pa ragraph 6; Annex VI. 
ADA:  Article 6, pa ragraph 7; Annex I.) 
 (1)  When necessary to verify information provide d or to obtain further details, the investigating 
team may conduct on-the-spot investigation of the su ppliers or government that granted subsidies in the 
exporting country (as in paragraph 6 of Article 12 of ASCM or paragraph 7 of Article 6 of ADA), in the 
following manner:   G/ADP/N/1/JPN/2/Suppl.4 
 G/SCM/N/1/JPN/2/Suppl.4  Page 7 
 
 
  (i)  Before investigation 
   A Schedule arrangement  
   (a) Confirm the agreement of the party concerned over the investigation.  
    (b) Arrange the date of the inves tigation, upon the agreement with the party 
concerned. 
 
   (c) Notify representatives of the governme nt of exporting countries and confirm that 
they do not object to the investigation. 
   B   Notify the party concerned prior to the investigation  
 When the date is agreed, send a notice and other detail documents of the investigation to the 
party concerned. In such a case, send a detailed agen da of the investigation along with these documents 
to the supplier in the exporting country in approxi mately 17 days prior to the visit considering the 
necessary preparation time.   (ii)  After the investigation 
 
  A   Make a verification report    B   When making the disclosure of the important facts before the final determination 
(which refers to the notice provided in Article 12 of the Cabi net Order Relating to 
Countervailing Duty or Article 15 of the Cabinet Order Relati ng to Anti-Dumping 
Duty; this reference is also applicable in subparagraph (2) of paragraph 11 or in 
subparagraph (2) of paragraph 15), send the verification report to the parties 
concerned. 
   C   Regardless of the preceding paragraph, disclose the verification report to the interested 
party prior to the disclosure of the im portant facts, if requested to do so 
 (2) The provision of the preceding subparagraph (1) applies mutatis mutandis to the domestic 
producer or importer.  
11.   Facts available
 
 (ASCM:  Article 12, paragraph 7. 
ADA:  Article 6, pa ragraph 8; Annex II.) 
 (1)   In any of the following cases, preliminary or final determination may be made on the basis of 
the facts available referred to in paragraph 7 of Ar ticle 12 of ASCM or paragr aph 8 of Article 6 of ADA. 
  (i)  Refusal to answer a questionnaire   (ii)  Insufficient information, with  questionnaire only partly answered 
 
 (iii)   The accuracy of the subm itted information ca nnot be clarified 
  (iv)   Significant delay in submitting the n ecessary information within a reasonable period 
without good reason G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 Page 8 
 
 
  
 (v)     Other similar circumstances to the above  (2)   Regarding the use of the facts available, the following procedures apply; 
 
 (i) When there is a request to extend th e period for answering the questionnaire, an 
extension will in general be granted, unles s such extension would be likely to cause 
serious delay to the investigation. 
 
 (ii)   When the period for answering the que stionnaire has expired, the party shall be 
encouraged to answer the questionnaire a nd be reminded of the possibility for using 
the facts available. 
  (iii)   When the answers to the questionnaires are insufficient, further information shall be 
requested. 
  (iv)   When facts available are used and pa rt or all of the submitted information is not 
accepted, the reason for non-acceptance of the information and the part where facts 
available is used shall be notified to the interested party, and an opportunity to obtain a more detailed explanation sh all be provided  in a certai n period to the interested 
party. 
  (v)   When part of the submitted informatio n is insufficient, incomplete, or unclear, the 
interested parties shall be requested to give further e xplanation at the on-the-spot 
investigation. 
 
 (vi)   When a preliminary determinations is  made, the reason for use of facts available as 
well as the information used and the proc ess involved shall be notified to the 
interested parties, public notic e shall be given, and opportunities shall be provided for 
the interested parties to  defend their interests. 
 
 (vii)   When a disclosure of the important facts is made, the reason for use of facts available 
as well as the information used and the process involved shall be notified to the 
interested partie s, and an opportunities shall be pr ovided for interested parties to 
defend their interests. 
 
 (viii)   When a final determination is made, amendments made during the investigation after 
the preliminary determination shall be notifie d to the interested parties, and a public 
notice shall be promulgated. 
 12.  Sampling for investigation
 
 
(ADA:  Article 6, paragraph 10; Article 6, paragraph 10, subparagraphs 1 and 2.) 
 (1)   In any of the following cases, when the volume of the exports from related countries exceeds that which can reasonably be investigated in the ex amination, samples may be used for the investigation 
(hereinafter referred to simply as "sampling" ), as in paragraph 10 of Article 6 of ADA. 
 
 (i)    In principle, when the number of known suppliers in the exporting country exceeds 20 
  (ii)   When the number of the types of product s in the investigation is so large as to make 
individual determinati ons impracticable.  G/ADP/N/1/JPN/2/Suppl.4 
 G/SCM/N/1/JPN/2/Suppl.4  Page 9 
 
 
  
(2)   When conducting the sampling, the following procedures shall be followed   (i)    Send a preliminary questionnaire to al l the known suppliers in the exporting country, 
which inquires about the volumes of exports to  Japan and third-coun tries, sales in the 
domestic market and volume of production of the product concerned in the period of 
investigation; 
  (ii)   When suppliers have not submitte d their answers, encourage them to do so; 
 
 (iii)   Conduct sampling based on the answer if there are more than 20 producers in the 
exporting country. In this case, even if producers have not subm itted their answers, 
they may be selected for sampling if they are recognised as representative producers in the exporting country; 
 
 (iv)   Notify the implementation of sampling to the selected producers and an opportunity to 
provide a further explanation shall be given; and 
  (v)   Notify on non-selection to the suppliers in the exporting country that replied  to the 
preliminary questionnaire but  were not been selected for sampling, and if they 
requests investigations, the separate investig ations will, in principle, be done for them, 
in the same way as for those selected. 
 (3)   When conducting sampling, the following points will be considered:  
 (i)   Approximately 20 producers that have a large volume of exports to Japan will be 
selected in princi ple, so that the total amount of exports covered by the investigation 
exceeds approximately 50% of the tota l exports of that exporting country; 
  (ii)   In the case that there are several c ountries concerned, select ions of producers will be 
made  from each of such countries; and 
 
 (iii)   In the case that the products concerned have a variety of types, try to include all types 
of products in the selected products, as far as possible. 
 13.  Calculation method of the amount of subsid ies to be targeted by countervailing duties
 
 
(ASCM:  Article 14.)  (1)  Basic concept   The method of calculating the amount of representa tive subsidies is basicall y as follows.  While, 
calculation method of each subsidy shall be de termined appropriately with taking account of 
characteristics and conditions of each subsidy in individual investigation. 
  (i)   Grants  
  A   Amount of subsidy 
  In the case of a grant, the amount of subsidy is  the amount of the grant by the government of the 
export country (hereinafter referr ed to as "government" including (a) any public body in the export 
country, (b) a private body carrying out funding that is normally vested in the government, or one that is G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 Page 10 
 
 
 entrusted or directed by the gove rnment to carry out funding that does not differ substantially from 
practices normally followed by the government).  In  the case of exemption or remission of domestic 
taxes, etc., as for a grant, the amount of subsidy is the amount of the tax exempt ed or remitted, etc. the 
company would have paid. 
 
  B  Time of receipt of subsidy   In the case of a grant, the subsidy is deemed to have been received as of the date on which the company received the grant. 
 
 (ii)  Debt forgiveness    A   Amount of subsidy  
 In the case of forgiveness of a company’s debt obligation, the amount of subsidy is the amount 
of the principal and/or interest that the government has forgiven.    B  Time of receipt of subsidy   In the case of forgiveness of a company’s debt obligation, the subsidy is deemed to have been 
received as of the date on which the debt and/or interest was forgiven. 
  (iii)  Equity    A   Amount of subsidy 
 
 (a)   In the case of a government-provided equ ity infusion, where a benefit is considered to 
have existed to the extent that the investme nt decision is inconsistent with the usual 
investment practice of private investors (e.g. private i nvestors would not be able to 
invest under such investment conditions), including the practice for the provision of 
risk capital, the amount of subsidy is th e amount of the balance of the government’s 
investment over and above that of privat e investors under the similar investment 
conditions. 
  (b)   If actual investment by private in vestors which is comparable to government 
investment is not available, an adequate amount of subsidy will be determined after 
examining circumstances whereby the government may make a reasonable return on 
the investment within a reasonable period, etc. 
   B  Time of receipt of subsidy   In the case of a government-provided equity in fusion, the subsidy is deemed to have been 
received as of the date on which the company received the equity infusion. 
  (iv)  Loans    A   Amount of subsidy 
 
 (a)   In the case of a loan, where a benefit is  considered to have existed to the extent that 
there is a difference between the amount a company pays on the government-provided 
loan and the amount the company would pay on a comparable comm ercial loan that  G/ADP/N/1/JPN/2/Suppl.4 
 G/SCM/N/1/JPN/2/Suppl.4  Page 11 
 
 
 the company could actually obtain on the market, the amount of subsidy is the amount 
of that difference. 
  (b)   If an actual commercial loan to the company which is comparable to a government-
provided loan is not available, an adequate  amount of subsidy will be determined after 
examining reasonably comparable commercial loans available in the domestic market. 
   B  Time of receipt of subsidy  
 In the case of a loan, the subs idy is deemed to have been rece ived as of the date on which the 
company would otherwise have had to make a payment on a comparable commercial loan. 
  (v)  Loan guarantees  
  A   Amount of subsidy 
  In the case of a loan guarantee, where a benefit is  considered to have existed to the extent that 
there is difference between the amount a compan y pays for a loan with a government-provided 
guarantee and the amount the company would pay for a comparable commercial loan that the company 
could actually obtain on the market without the gov ernment-provided guarantee, the amount of subsidy 
is the amount of that difference. 
   B   Time of receipt of subsidy   In the case of a loan guarantee, the subsidy is de emed to have been received as of the date on 
which the company would otherwise have had to make a payment on a comparable commercial loan. 
  (vi)  Provision of goods or services / Purchase of goods 
   A   Amount of subsidy  
 (a)   In the case of provision of goods or services or purchase of goods by a government, 
where a benefit is considered to have existed to the extent that such provision of goods 
or services is made for less than adequate  remuneration, or such purchase of goods is 
made for more than adequate remuneration,  the amount of subsidy is the amount of 
the difference between adequate remuneration and actual remuneration made. 
 
 (b)   The adequacy of remuneration shall be determined appropri ately by considering 
prevailing market conditions for the good or  service in question in the country of 
provision or purchase (including price, quality, availability, marketability, transportation and other conditi ons of purchase or sale). 
 
  B  Time of receipt of subsidy 
  In the case of the provision of goods or services  or purchase of goods, the subsidy is deemed to 
have been received as of the date on which the co mpany or the government paid or, in the absence of 
payment, is assumed to have been due to pay for th e provision of goods or services or purchase of goods 
by a government. 
 (2)  Adjustments to the ca lculation of subsidy amount 
  When the amount of a subsidy is calculat ed, the following adjustments shall be made: G/ADP/N/1/JPN/2/Suppl.4 
G/SCM/N/1/JPN/2/Suppl.4 Page 12 
 
 
  
 (i)   Deductible expenses     Expenses incurred in applying for a subsidy or export tax paid in order to offset the 
subsidy shall be deducted from  the amount of subsidy. 
  (ii)   Allocation of subsidy    A   Where a company continuously receives benefit over a number of years from the base 
year for reckoning receipt of a subsidy, the amount of subsidy shall be allocated for an 
appropriate period of time. In that case,  interest on the benefit derived from the 
subsidy shall be added. 
   B   The necessity of the allocation of s ubsidy shall be determined upon considering the 
nature, conditions, and so fort h of the individual subsidy. 
 14.   Treatment after preliminary determination
 
 (Law:   Article 7, paragraph 10; Article 8, paragraph 9.) 
 
 Treatment after preliminary determination is as follows: 
  (i)   When it can be presumed that impor tation of the subsidis ed products or dumped 
products has occurred resulting in  material injury, etc. to the domestic industry caused 
by such importation, and if it is found neces sary to protect such domestic industry, 
provisional measures may be applied. 
  (ii) If it cannot be presumed that importa tion of the subsidised products or dumped 
products has occurred, but it can be presumed  that such importation caused material 
injury, etc. to the domestic industry, furt her continuation of investigation shall be 
considered. 
 
 (iii)   When material injury, etc. to the do mestic industry caused by the importation of the 
subsidised products or dumped products cannot be presumed, termination of the 
investigation shall be considered. 
 
15
2.  Undertaking  
  The paragraph title is amended to “Undertaking” and the former  title has become the title of 
subparagraph (1).   The phrase “, except for subparagraph (2) in this paragraph” is inserted after the phrase 
“hereinafter the same” in the chapeau of subparagraph (1).  
  The following subparagraphs ar e added after “subparagraph (1)”. 
 (2)  The following procedures shall apply to an undertaking 
 
 (i)   An undertaking (as referred to in the fi rst sentence of paragraph 9 of Article 7 of the 
Law (including the case where the said sentence is applied mutatis mutandis  to the 
                                                     
 
 2 The former paragraph 9 is become paragraph 15.   G/ADP/N/1/JPN/2/Suppl.4 
 G/SCM/N/1/JPN/2/Suppl.4  Page 13 
 
 
 first sentence of paragraph 15, paragraphs 21 and 25 of the said Article) or the offer as 
referred in the first sentence of paragraph 8 of Article 8 of the La w (including the case 
where the said sentence is applied mutatis mutandis  to the first sentence of paragraph 
14, paragraphs 24 and 28 of the said Article) ) shall be made within 10 days after the 
disclosure of the important facts.  
  (ii)   The applicant as referred to in paragr aph 1 of Article 4 of th e Cabinet Order Relating 
to Countervailing Duty or paragraph 1 of Article 7 of the Cabinet Order Relating to 
Anti-Dumping Duty shall be given an opportunity to provide further explanation. 
 
(3)  In any of the following cases, th e offered undertaking may be refused: 
  (i)   When the exporter has not presented a minimum export price that would remove the 
injury to the domestic industry; 
 
 (ii)   When the government that provided the subsidy has not presente d measures to remove 
the injury to the domestic industry; 
  (iii)   When reasonable grounds exist to doubt that the exporter would fulfil such an 
undertaking; 
 
 (iv)   When objective circumstances exist that would make it difficult to observe the 
situation of compliance with such an undertaking; 
  (v)   When other objective reasons exist that  is similar to above cases where it is not 
appropriate to accept such an undertaking. 
 (4)  Where it is judged that the undertaking has be en broken, the following actions shall be taken: 
  (i)   When an investigation is not yet comp lete, the provisional measures referred to in 
paragraph 10 of Article 7 of the Law, or paragraph 9 of Article 8 of the Law shall 
immediately be taken based on the best information available at the time, the 
investigation shall be completed promptly, and countervailing duty or anti-dumping duty as referred to in paragraph 1 of Articl e 7 of the Law, or paragraph 1 of Article 8 
of the Law, may be imposed. 
 
 (ii)  When an investigation has been completed, countervailing duty or anti-dumping duty 
as referred to in paragraph 1 of Article 7 of the Law, or paragraph 1 of Article 8 of the 
Law, may be immediately imposed. 
 
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