RESTRICTED
WORLD TRADE G/ADP/AHG/W/6
9April 1997
ORGANIZATION(97-1477)
Committee onAnti-Dumping Practices Original: Spanish
AdHocGroup onImplementation
TOPICS 7AND 10*
Proposal byChile
Thefollowing communication, dated 24March 1997, hasbeenreceived fromthePermanent
Mission ofChile.
_______________
Irefertothetopics tobestudied bytheAdHocGroup assetoutindocument G/ADP/W/401.
Inthisconnection, Ihavethepleasure totransmit thefollowing proposals byChile concerning
thatdocument:
- InAnnex Ithere aretwospecific proposals relating toitem7(Provision ofessential
factsunder consideration before making afinaldetermination under Article 6.9)and
item10(Dutyassessments under Article 9).
- With regard totherestofthetopics, wedonothaveanyspecific proposals tomake,
butitwould bedesirable forthedebate tobeguided bythesuggestions contained in
Annex II.
*Seedocument G/ADP/W/401 fordescriptions ofthenumbered topics.G/ADP/AHG/W/6
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ANNEX I
Topic 7: Provision ofessential factsunder consideration before making afinaldetermination
under Article 6.9
Ourpractice inthisareaisbased onwritten notification totheconcerned parties oftheessential
factsoftheinvestigation. Thenotification summarizes theinformation inthepublic record ofthe
investigation. Itspurpose istomake known totheconcerned parties thebackground, dataand
information obtained during theinvestigation relating tothedumping andtheinjury ithascaused, the
source ofthisinformation, andthemethodology usedtocalculate themargin ofdumping, allofwhich
serves asabasisforthefinaldecision bytheinvestigating authority. Thisnotification ismade inwriting
tothedomicile oftheconcerned parties.
Thenotification contains three sections:
Thefirstprovides general background information relating totheinitiation ofthe
investigation, description oftheproduct being investigated, concerned parties, andlikeness
oftheimported product tothedomestic product.
Thesecond section concerns dumping andoutlines themethodology forthecalculation
ofthedumping margins (including anyadjustments) andthesource ofthedataforthenormal
value andexport price.
Thethirdsection refers totheinjury caused tothedomestic industry bythedumping.
Itcontains information ondomestic prices, production costs, profit margins, installed capacity
andutilization thereof, imports, production, sales, apparent consumption etc.,aswellasall
theeconomic factors andindices relating tothedomestic industry available totheinvestigation.
Where appropriate, reference ismade tothetypeofeconomic tooloranalysis usedtoevaluate
causality andinjury (Granger Test, economic modelling andsoforth).
With regard tothetiming formaking thedetermination ofessential facts, itwasthought best
thatthisshould bedone atadatesufficiently close tothatofthefinaldetermination sothatthe
Commission already possesses virtually alltheinformation needed toreach adecision, while atthe
sametimeleaving sufficient timeforparties tobeabletomake theircomments, defend theirviewpoints
andevensubmit some finalinformation. Forthispurpose aperiod of15daysfrom thenotification
isallowed forparties tobeabletomake theirobservations.
Thispractice hasresulted inthenotification ofessential information being aspecific andeasily
identifiable stage within theinvestigation process. Ithasmeant thattheparties know thattheyhave
theopportunity toraisetheitems theyconsider important fortheinvestigation toreach therightdecision,
andthatwiththeinformation available inthepublic record theycanreview thecalculations and
methodology usedbytheCommission andpossibly submit criticisms orcorrections thereto.G/ADP/AHG/W/6
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Topic 10: Duty assessments under Article 9
Theapplication ofananti-dumping dutyormeasure should beequivalent tothemargin ofinjury.
Article 1oftheAgreement ofImplementation ofArticle VIoftheGeneral Agreement onTariffs
andTrade 1994provides thatananti-dumping measure shallbeapplied onlyunder thecircumstances
provided forinArticle VIofGATT 1994 andpursuant toinvestigations initiated andconducted in
accordance withtheprovisions oftheAgreement.
Strictly interpreted, thisprovision means thatanti-dumping measures canbeapplied onlywhen
ithasbeenestablished thatdumping causes injury tothedomestic industry. Accordingly, theaimis
torestore thesituation ofthedomestic industry asitwasprior totheexistence ofthedumping prices,
forwhich theabove-mentioned dutywould suffice.1
Thedetermination ofthedutyonthebasis ofthemargin ofdumping, which isgreater than
themargin ofinjury, would produce overprotection because, firstly, thismargin hasbeendetermined
attheleveloftheexporting country without considering thenatural protection offered bygeographical
distance (freight andother transport costs) andcustoms tariffs intheimporting country, andsecondly,
thedumping margin mayinclude theprotection existing fortheinvestigated product intheexporting
country 'shome market.
When anti-dumping measures areapplied intheform ofadvalorem duties, theapplication
ofanydutyshould becorrected forthetrend effects oftheexport price during theperiod when the
measure isestablished. This correction would make itpossible toavoid overestimating or
underestimating theinjury during thisperiod. Toputitsimply, thedutyshould belower iftheexport
prices display ademonstrated upwards trend, would notbecorrected iftheprices donotdisplay any
trend, andwould beincreased inthecaseofanegative trend. Thiscorrection would beallthemore
valid thelonger theperiod ofduration ofthedutyimposed bymember countries.
1Where theanti-dumping dutyequivalent tothemargin ofinjury isdetermined asanadvalorem duty, in
determining thedutyitisnecessary totakeintoaccount theimport costoftheproduct (atthesame level asthe
domestic price) since theexport price (c.i.f.) doesnotconstitute 100percentofthefinalprice causing theinjury
inquestion.G/ADP/AHG/W/6
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ANNEX II
1. With regard tothetopics "Treatment ofconfidential information" (topic 1);"The provision
forhearings inArticle 6.2"(topic 6)and"Public notices" (topic 8),itwould beinteresting
tohaveadocument summarizing theexperience ofMembers andoutlining thevarious systems
inusebythem.
2. Withregard tothetopic"Theperiod ofdatacollection foradumping investigation" (topic 2),
itissuggested thatthediscussion should cover considerations relating to:
- Determination ofcriteria forestablishing appropriate data-collection periods forthe
determination ofdumping andinjury margins soastoconsider annual andlonger-term
seasonality ofproduct prices;
- Determination ofcriteria forestablishing appropriate data-collection periods forthe
determination ofinjury margins andcausality inorder toeliminate circumstantial
variations(start-upperiod,internaladministrativeadjustments,etc.)andmakeitpossible
togenerate historical injury andcausality databyapplying theappropriate statistical
tests.