./.WORLD TRADE
ORGANIZATIONG/ADP/Q1/CHN/10
G/SCM/Q1/CHN/10
23 October 2002
(02-5806)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Questions Posed by the SEPARATE CUSTOMS TERRITORY OF TAIWAN,
PENGHU, KINMEN AND MATSU Regarding
the Notification of THE PEOPLE'S REPUBLIC OF CHINA1
The following communication, dated 21 October 2002, has been received from the Permanent
Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
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Questions with regard to China's Transitional Review Mechanism (TRM) on Subsidies and
Countervailing Measures
1. Article 4
1. Please explain what is the difference between, in Item (1), "the subsidy received by certain
enterprises or industries explicitly specified by the government of an exporting country (region)" and,
in Item (2) "the subsidy received by certain enterp rises or industries explicitly provided for in laws
and regulations of an exporting country (region)" of paragraph 2, Article 4?
2. Shall the factors exemplified in the third paragraph (such as 'the number of subsidized
enterprises, the amount, proportion, length of time, a nd form of the subsidy received by enterprises')
also be considered, when a subsidy has already been  determined as being specific according to the
five circumstances set forth in paragraph 2?
2. Article 6
According to Article 14(a) of the SCM Agreement, government provision of equity capital
shall not be considered as conferrring a benefit.  Please explain how the amount of subsidy in form ofan equity infusion "shall be calculated on the basis of the actual amount of the capital an enterprise
received", as set forth in Item (4), so as to be  in conformity with the regulation above-mentioned?
3. Article 13
Please explain what the "natural person on behalf of the domestic industry" refers to?  Must
the natual person be a producer of a  domestic industry?  And, does the natural person have to provide
the information on its domestic production and on the injury alleged?
                                                     
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4. Article 22
Please advise how the investigating authorities sh all act when they consider that a request for
confidentiality is not justifiable?
5. Article 28
Can a countervailing investigation on a country (region) or some countries (regions) be
terminated according to the circumstances set forth in Items (1) and (6)?
6. Article 54
What are the circumstances that shall be determined as constituting circumvention of
countervailing measures?  What are the appropriate measures that may be taken by MOFTEC and
SETC to prevent the circumvention?
7. Article 55
What are the procedures and methods that will be followed and adopted when taking
corresponding measures against any country (region) which discriminatorily imposes countervailing
measures on exports from the People's Republic of China?
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