./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/PER/12
G/SCM/Q1/PER/12
22 September 1998
(98-3638)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Replies to Questions Posed by Mexico1
Regarding the Notification of Peru2
The following communication, dated 1 September 1998, has been received from the
Permanent Mission of Peru.
_______________
1. According to Article 5, Section II, of the Regulations on Dumping and Subsidies, a
particular market situation in the sense of Article 2.2 of the Anti-Dumping Agreement may
arise where special factors exist in the domestic market of the country of  origin which, in the
opinion of the Commission, do not permit a prop er comparison because they cause distortion of
domestic prices.  What are the "other special fact ors" in the domestic market of the country of
origin which can affect prices in such a manner as to make it impossible to make a propercomparison?
The other special factors in  the domestic market of the country of origin which, in the
opinion of the Commission, can affect prices in such a manner as to make it impossible to make a
proper comparison, include situations such as, inter alia, the existence  of a centralized economy, an
economy affected by a high degree of hyperinflation or special trade treatment areas.
2. Article 6 of the Peruvian legislation establ ishes the manner in which normal value is to
be calculated in the case of non-market econo my countries.  The Article provides for three
possibilities for determining this price.  Two a re explicit, while the third option envisaged for
the calculation of a normal value in the substitute  country is ambiguous.  When it is stated that
the normal value may be determined on the ba sis of any other method deemed appropriate by
the Commission, what does the Commission have in mind?
According to the Regulations, the Commission has the possibility of using an alternative
method distinct from those mentioned in Article 6, taking into account the criteria established in the
Article in question and in Article 2 of the WTO Anti-Dumping Agreement.
                                                     
1 G/ADP/Q1/PER/10-G/SCM/Q1/PER/10
2 G/ADP/N/1/PER/1/Suppl.2-G/SCM/N/1/PER/1/Suppl.2.G/ADP/Q1/PER/12
G/SCM/Q1/PER/12
Page  2
3. With regard to the concept of "massive impo rts in a relatively short period of time"
mentioned in the second paragraph of Article 44, what does the Commission consider to be a
"relatively short" time?
In such a case, the Commission acts in accordance with Article 20.6 of the Agreement on
Subsidies and Countervailing Measures, assessing the circumstances of the particular case.
__________