RESTRICTED
WORLD TRADE G/ADP/IG/W/5
3April 1998
ORGANIZATION(98-1347)
Original: English Committee onAnti-Dumping Practices
Informal Group onAnti-Circumvention
TOPIC 1-WHAT CONSTITUTES CIRCUMVENTION?
Paper byTurkey
Thefollowingcommunication,dated1April1998,hasbeenreceivedfromthePermanentMission
ofTurkey.
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Circumvention canbedefined astheevasion ofanti-dumping measures through certain methods
oractions designed onlyforavoiding thepayment ofanti-dumping duty.
Thefollowing situations might constitute circumvention:
1. Thephysical nature ofthesubject goods ismodified oraltered marginally toanextent that
anti-dumping duties arenotcollected subsequent totheanti-dumping order where there isinsufficient
motive oreconomic justification other thantheimposition oftheduty.
2. Thelikeproduct which issubject totheanti-dumping dutyisassembled orcompleted inthe
importing orinathirdcountry where:
(i) theassembly orcompletion iscarried outbyaparty which isrelated tooracting on
behalf ofanexporter orproducer subject totheanti-dumping order;
(ii) theassembly orcompletion operations hasbegun orexpanded substantially andthe
imports ofparts andcomponents ofthelikeproduct have increased justafterthe
initiation oftheanti-dumping investigation;
(iii) thetotalcostofpartsandcomponents imported isnotlessthan80percentofthetotal
costofallparts usedintheassembly andthevalue added intheimporting country
must belessthan20percentoftheex-factory cost;
(iv) thereisevidence ofdumping inrelation totheoriginal normal value ofthelikeproduct.
If,afterconducting aninvestigation, itisproved thatsuchacircumvention occurs andthere
isalsoevidence thatanti-circumvention measures arenecessary toprevent oroffset thecontinuation
orrecurrence ofinjury tothedomestic industry producing alikeproduct, theexisting anti-dumping
duties canbeextended toapply tolatermodified products; imports fromthirdcountries oflikeproducts,
orparts thereof.
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