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FEDERATION TO THE WORLD TRADE ORGANIZATION 21 страница



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583. Federal Law No. 165-FZ empowered the responsible Federal executive body (once an investigation had been undertaken pursuant to this Law) to propose the imposition of safeguard, anti-dumping or countervailing measures. It also permitted the responsible authority to propose their review and termination. Before the entry into force of the Agreement of 25 January 2008, following such proposals, the decision to impose, review or terminate a measure would be taken by the Government of the Russian Federation. According to Federal Law No. 165-FZ, an anti-dumping or countervailing measure could be terminated by decision of the Government of the Russian Federation when the review of the measure established that the measure was not needed for the elimination of material injury caused by dumped or subsidized imports and that there was no likelihood that such injury would occur again if the measure was terminated. Under the Agreement of 25 January 2008, such decisions were taken by the CU Commission. Federal Law No. 165-FZ stipulated also the rules concerning cases where the Government of the Russian Federation could decide to increase the pace of liberalization of a safeguard measure or to withdraw it. After the transitional period, the CU Commission would have similar authority to increase the pace of liberalization of a safeguard measure or to withdraw it.

584. Noting that Article 35 (4) of Federal Law No. 165-FZ appeared to limit the extent of information disclosed on the findings of safeguard investigations to "key conclusions" and that Article 35 (5) of Federal Law No. 165-FZ appeared to limit the extent of information disclosed on the findings of anti-dumping and countervailing investigations to "an explanation of the final determination", a Member expressed concerns about the consistency of Article 35 with Article 3 of the WTO Agreement on Safeguards, Article 12 of the WTO Agreement on Anti-Dumping and Article 22 of the WTO Agreement on Subsidies and Countervailing Measures. This Member invited the Russian Federation to address these issues in legislation. This Member also observed that Article 6.9 of the WTO Agreement on Anti-dumping was not reflected in the mentioned Law and requested the Russian Federation to implement the content of this Article in legislation. A Member further noted that Article 9 of Federal Law No. 165-FZ, regarding the application of safeguard measures, only partly reflected Article 5.2 (b) of the WTO Agreement on Safeguards, since it omitted to state the obligation of the Russian Federation to hold consultations with Members on allocation of quotas in the occurrence of disproportionate imports. This Member invited the Russian Federation to enter into a commitment reflecting that the provisions of the WTO Agreement on Safeguards would be fully respected upon WTO accession and that in the event of such a situation, the Russian Federation would hold consultations under Article 12.3 of the WTO Agreement on Safeguards with supplying Members.

585. Some Members noted that Federal Law No. 165-FZ did not incorporate Annex I or Annex II of the WTO Agreement on Anti-dumping concerning Procedures for On-The-Spot Investigation and Best Information Available and asked, if the Russian Federation would address these issues in its legislation. Another Member asked, with regard to Article 12.6 of the WTO Agreement on Subsidies and Countervailing Measures and Article 6.7 of the WTO Agreement on Anti-dumping, how the administering authority of the Russian Federation determined the accuracy of the information submitted by domestic and foreign parties. That Member also noted that the amended Parts 3 and 5 of Article 35, while providing more detail regarding what must be included in preliminary and final determinations, as provided under Article 12 of the WTO Agreement on Anti-dumping and Article 22 of the WTO Agreement on Subsidies and Countervailing Measures, did not detail the procedures for interested parties to provide comments in the course of the investigation process, as provided under Article 6 of the WTO Agreement on Anti-dumping and Article 12 of the WTO Agreement on Subsidies and Countervailing Measures.

586. The representative of the Russian Federation confirmed that Articles 35 (4) and 35 (5) of Federal Law No. 165-FZ, as amended by Federal Law No. 280-FZ, were applied in a manner consistent with Article 3 of the WTO Agreement on Subsidies and Countervailing Measures by disclosure of findings and reasoned conclusions on all pertinent issues of fact and law; with Article 12 of the WTO Agreement on Anti-dumping, notably by disclosure of all relevant information on the matters of fact and law and, reasons which had led to the imposition of final measures or the acceptance of a price undertaking; and with Article 22 of the WTO Agreement on Subsidies and Countervailing Measures notably by disclosure of all relevant information on the matters of fact and law and, reasons which had led to the imposition of final measures or the acceptance of undertakings. He further confirmed that the issue of incorporation of Annex I and Annex II of the WTO Agreement on Anti-dumping concerning Procedures for On-the-Spot Investigation and Best Information Available had been addressed in the provisions of Federal Law No. 165-FZ.

587. In respect of the issue on the determination of accuracy of the information available, he responded that Federal Law No. 280-FZ, which amended Federal Law No. 165-FZ, addressed all of these points in accordance with the WTO Agreement. In particular, Articles 25.12, 28.2, 28.3, 29.1 of Federal Law No. 165-FZ, as amended by Federal Law No. 280-FZ, were devoted to the determination of accuracy of the information submitted by domestic and foreign parties by means of additional procedures in the course of investigation. These articles, in his view, were in full conformity with WTO provisions. He added that, under Federal Law No. 165-FZ, as amended by Federal Law No. 280-FZ, and consistent with Article 6 of the WTO Agreement on Anti-dumping and Article 12 of the WTO Agreement on Subsidies and Countervailing Measures, interested parties were able to provide comments at any stage of the investigation and meet with the investigating authority upon request. He further responded that the amended part 4 of Article 28 of the Law obligated the investigating authority, prior to the submission to the Government of the Russian Federation of a report making proposals as to the final results of the investigation, to provide all interested parties a non-confidential version of that report in sufficient time so that all interested parties had a meaningful opportunity to comment on the essential facts and defend their interests.

588. A Member noted that Federal Law No. 280-FZ, which amended Federal Law No. 165-FZ, provided that foreign exporters and producers, which had not had an individual margin calculated, would receive the "highest (calculated) rate". This Member asked whether this would apply to cases where the investigating authority must sample and could not review all cooperating parties. The Member then noted that Article 9.4 of the WTO Agreement on Anti-dumping required that a weighted average be used in situations where there were administratively too many respondents to calculate an individual rate for each.

589. The Representative of the Russian Federation stated that Federal Law No. 280-FZ, which amended Federal Law No. 165-FZ, addressed these concerns in accordance with the WTO Agreement. Specifically, in cases where foreign exporters or producers of the dumped imports were not selected for the calculation of an individual dumping margin, but had submitted requested information (e.g., sales information for the purposes of selecting the sample of exporters or producers for whom individual dumping margins would be calculated) within time limits ascertained for its consideration, the representative of the Russian Federation confirmed that the anti-dumping duty would not exceed the weighted average dumping margin, which was established with respect to the selected foreign exporters or producers of the dumped imports.

590. A Member pointed out that Article 16.3 of Federal Law No. 165-FZ did not contain all the provisions of Article 9 of the WTO Agreement on Implementation of Article VI of the GATT 1994. In particular, it did not foresee the possibility of a newcomer review according to Article 9.5 of the WTO Agreement on Implementation of Article VI of the GATT 1994. This Member further noted that Article 13.3 of Federal Law No. 165-FZ of 8 December 2003 "On Safeguards, Anti-dumping and Countervailing Measures applying to imports of Products" did not seem to require that consideration must be given to whether price-undercutting was "significant" or that the effects of imports were to depress prices to a "significant" degree, or prevent price increases, which otherwise would have occurred to a "significant" degree, as required by Article 3.2 of the WTO Agreement on Anti-dumping. This Member finally noted that Article 6.1 of Federal Law No. 165-FZ provided the possibility for the Russian Federation to impose safeguard measures when imports rose in relation to domestic consumption. However, Article 2 of the WTO Agreement on Safeguards only allowed the imposition of safeguard measures when imports rose in absolute terms or in relation to domestic production. He also pointed out that Article 8 of Federal Law No. 165-FZ did not contain any reference to the existence of "critical circumstances" before the imposition of provisional safeguard measures, as provided by Article 6 of the WTO Agreement on Safeguards. This Member invited the Russian Federation to take up all these issues in its legislation.

591. The representative of the Russian Federation stated that, in his view, Federal Law No. 280-FZ, which amended Federal Law No. 165-FZ, addressed all of these points in accordance with the WTO Agreement. He confirmed that, from the date of accession, WTO requirements would be met in applying anti-dumping, countervailing and safeguard measures in the Russian Federation, whether by the competent authority of the Russian Federation or by the competent body of the CU. The Working Party took note of this commitment.

592. A Member posed questions to the Russian Federation regarding the regional industry provisions provided under Russian law. Specifically, this Member asked whether the law of the Russian Federation prohibited the assessment of duties on less than a country-wide basis. This Member noted that Article 4.2 of the WTO Agreement on Anti-dumping only allowed country-wide application of duties without limitation if: (i) an opportunity to cease exporting at dumped prices was provided; and (ii) duties could not be levied on only the products of the specific producers supplying the region in question. The representative of the Russian Federation responded that the Constitution of the Russian Federation effectively prohibited the collection of duties on less than a country-wide basis and that Parts 3 and 4 of Article 33 of Federal Law No. 165-FZ contained provisions regarding the regional industry provisions that fully corresponded to provisions of Article 4.2 of the WTO Agreement on Anti-dumping.

(b) Regime established Under the Agreement of 25 January 2008

593. The representative of the Russian Federation noted that the provisions of the Agreement of 25 January 2008 provided the principles for CU Parties (the Russian Federation, the Republics of Belarus and Kazakhstan) to apply trade remedies with regard to third countries. Principles for applying trade remedies between the Russian Federation, the Republics of Belarus, Kazakhstan and Tajikistan and the Kyrgyz Republic were stipulated in the Protocol of 17 February 2000, which was in force as between the three CU Parties until the creation of a single customs territory on 1 July 2010 and was currently no longer applied in their mutual trade.

594. The representative of the Russian Federation explained that CU Commission Decision No. 191 of 26 February 2010 provided that, from 1 July 2010, all final decisions with respect to application of common trade remedies in the Russian Federation and the Republics of Kazakhstan and Belarus would be taken by the Commission of the Customs Union. During the transitional period, decisions were taken on the basis of a proposal from the Government of one of the CU Parties that carried out the investigation, as described in the preceding part of this section. After the transition period, decisions related to the introduction, review or termination of trade remedies would be taken by the CU Commission on the basis of a proposal from the single designated competent authority of the CU following the investigation. The procedural rules for trade remedy measures would be set-out in a separate CU Regulation. The decisions of the CU Commission would be applied by all Parties to the CU, within the whole territory of the CU, to the imports of relevant third countries.

595. Upon the entry into force of the Agreement of 25 January 2008, in all trade remedy investigations, the domestic industry was defined as: (i) all producers of a like product (for the purposes of the anti-dumping and countervailing investigation); (ii) a like product or directly competitive product (for the purposes of safeguard investigation) in the CU Parties; or (iii) those producers who constituted not less than 25 per cent of the whole production volume in the CU Parties, respectively. Similarly, the relevant import was the import into the entire single customs territory of the CU.

596. One Member expressed concern that, under the Agreement on Implementation of Article VI of the GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures, an investigating authority was obligated to examine the degree of support for, or opposition to, the application for the imposition of anti-dumping or countervailing duties prior to the initiation of an investigation. Specifically, an application must be supported by those domestic producers whose collective output constituted more than 50 per cent of the total production of the like product produced by that portion of the domestic industry expressing either support for, or opposition to, the application and that no investigation was to be initiated when domestic producers, expressly supporting the application accounted for less than 25 per cent of total production of the like product, produced by the domestic industry. This Member asked how the Russian Federation intended to comply with its obligations in this regard with respect to: (i) measures in place in the territory of only one of the CU Parties prior to the date of the entry into force of the Agreement of 25 January 2008; (ii) ongoing investigations on the date of the entry into force of this Agreement; and (iii) new investigations after the entry into force of this Agreement.

597. The representative of the Russian Federation responded that in accordance with paragraph 2 of Article 29.3 of the Agreement of 25 January 2008, the application must be submitted together with the evidence of support of such application on the part of producers of a like product in the CU Parties. The following evidence of the support of such application would prove sufficient: (i) documents verifying that the production share of the like product by producers in the CU Parties, who supported the application, constituted not less than 25 per cent of the total production volume of the like product in the CU Parties; and (ii) documents verifying that the production volume of the like product by producers in the CU Parties, who supported the application, constituted more than 50 per cent of the production volume of the like product by producers in the CU Parties, who have expressed support or opposition to the application.

598. He further explained that all these issues would also be addressed in the Transitional Agreement signed on 19 November 2010. The measures, which were in place in the national territories were subject to the expedited reviews, before application of these measures on the Common Customs territory. These reviews were to be conducted in conformity with the new rules and the national regulations to the extent those regulations did not contradict the Agreement of 25 January 2008. The investigations ongoing on the date of the entry into force of this Agreement were to be continued in accordance with the same principles. Therefore, if the national industry met the criteria of the industry of the Customs Union, stipulated by the Agreement of 25 January 2008, the investigation would be continued or, following a review, the application of an existing national measure would be extended to the Common Customs territory, otherwise it would continue to be in force within the territory of the party, which applied the original measure until the termination date without right to review in order to prolong the measure. In respect of new investigations, they could be initiated on behalf of the industry of the Custom Union or on the own initiative of the competent body and conducted on the same principles.

599. Concerning the concept of threat of material injury, a Member referred to the provisions of the Agreement of 25 January 2008 that did not seem to require that the change in circumstances, which would create a situation in which the dumping or the provision of subsidies would cause injury, must be clearly foreseen and imminent, and asked the representative of the Russian Federation to clarify the application of this concept by the Russian Federation. In response, the representative of the Russian Federation stated that the Agreement of 25 January 2008 provided that the determination of the threat of material injury was to be based only on economic evidence. Injury to a domestic industry of the CU Parties, as a result of the dumped or subsidized imported products, was to be established based on the results of the analysis of the volume of the dumped or subsidized imported products, its effect on the prices of like products in the market of the CU Parties and domestic producers of the like products in the Custom Union, etc. All facts should be foreseen and imminent.

600. A Member pointed to paragraph 4 of Article 37 of the Agreement of 25 January 2008, which stated that the CU Commission and other parties having access to confidential information, during the investigation, were liable for making the confidential information public, as provided for by the laws of the country where the competent body had the seat, and asked to explain this provision. This Member further asked the representative of the Russian Federation to clarify how this provision was consistent with paragraph 2 of Article 37 of the Agreement of 25 January 2008 and Article 6.5.1 of the Agreement on Implementation of Article VI of the GATT 1994 and Article 12.4.1 of the WTO Agreement on Subsidies and Countervailing Measures, which made clear that the responsibility for providing public summaries of confidential data rested with the interested party that provided the confidential data. Moreover, this Member asked the representative of the Russian Federation to explain who would have access to confidential information during the investigation, and how the CU Commission would ensure that the confidential data of a party was protected. Another Member asked the representative of the Russian Federation to explain how the Russian Federation would ensure that information provided on a confidential basis was not disclosed to others.

601. In response, the representative of the Russian Federation reiterated that the CU Commission was liable for making confidential information public and that the interested parties providing confidential information were required to provide a non-confidential summary. He further noted that the competent authority, which conducted a trade remedy investigation, must have access to confidential information, and that this information would be protected by internal regulations of the CU Commission, Article 37 of the Agreement of 25 January 2008, and the Protocol on the Order on Submission to Authority Conducting the Investigation the Information including Confidential Information for the Purposes of Safeguards, Anti-dumping and Countervailing Investigations, signed on 19 November 2010. He stated that, in the Russian Federation, protection of confidential information was provided for in Article 727 of the Civil Code.

602. A Member asked the representative of the Russian Federation to explain how it would ensure that the information provided during the course of a trade remedy investigation would be used only for the purpose of that investigation. The representative of the Russian Federation confirmed that information provided during a trade remedy investigation would be used only for the purpose of that investigation.

603. A Member requested the Russian Federation to ensure that, non-confidential summaries provided sufficient detail and understanding of the confidential information, in accordance with the relevant provisions of the WTO Agreement. The representative of the Russian Federation noted that, in accordance with Article 37 of the Agreement of 25 January 2008, interested parties providing confidential information must also provide a non-confidential summary thereof. These summaries must be in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence. If the competent body finds that the reasons presented by the interested party did not warrant classifying the presented information as confidential, or that the interested party, who failed to present a non-confidential summary of the confidential information also failed to provide evidence to support the claim that the information was not susceptible of summary, or presented evidence that did not support the claim that the information was not susceptible of summary, the competent body could disregard such information. In his view, these provisions fully complied with Article 6.5 of the Agreement on Implementation of Article VI of the GATT 1994 and Article 12.4 of the WTO Agreement on Subsidies and Countervailing Measures.

604. A Member requested the representative of the Russian Federation to clarify whether non-confidential case files would be made available to the general public, as well as interested parties, and to explain how the public files would be accessed (e.g., public reading room, online). This Member further asked the representative of the Russian Federation to explain any limitations placed on access to non-confidential information submitted to or issued by the CU Commission during the course of trade remedy proceedings. The representative of the Russian Federation explained that these issues would be addressed in a CU Commission internal regulation.

605. A Member asked the representative of the Russian Federation to explain how, under the new regime introduced upon the entry into force of the Agreement of 25 January 2008, the transparency and due process provisions of the Agreement on Implementation of Article VI of the GATT 1994, the WTO Agreement on Subsidies and Countervailing Measures, and the Agreement on Safeguards would be complied with, in the conduct of trade remedy investigations. In particular, this Member asked the representative of the Russian Federation to describe what opportunities interested parties would have to comment on and make arguments pertaining to decisions made by the CU Commission and positions taken by other parties in the proceedings. Furthermore, this Member wanted to know what procedures would be put in place to ensure that interested parties would have sufficient opportunities to defend their interests throughout the course of the investigation. In response, the representative of the Russian Federation stated, that the competent authority must ensure the publication of the notification concerning the imposition of the provisional and definitive anti-dumping, countervailing or safeguard measures. Such notification must consist of all relevant non-confidential information and facts, which formed the basis for the decision. Interested parties would be permitted to comment on the decisions by the competent authority, within the corresponding period of time. He further confirmed that interested parties were permitted to comment on the decisions by the competent authority within the corresponding period of time, envisaged in the Transitional Agreement. Also paragraphs 9 and 10 of Article 30 of the Agreement of 25 January 2008 stipulated that, upon request of any interested party, the competent authority must allow for consultations on the issues under investigation. The information submitted in written form by any interested party, as evidence related to the investigation, would be provided in writing to participants in the investigation by the competent authority with due regard to the protection of confidential information. The competent authority would give the participants in the investigation an opportunity to examine the other information used in the course of the investigation, which was related to the investigation and was not confidential. Based on the written requests from an interested party, the competent authority must conduct hearings. During the hearings, interested parties would have the right to present their position orally.

606. A Member referred to paragraph 5 of Article 30 of the Agreement of 25 January 2008 which stated that interested parties could register to participate in trade remedy investigations, and enquired whether this registration requirement would be specified in the initiation notice. This Member further asked the representative of the Russian Federation to clarify the implications, if an interested party did not register and whether such non-registration would preclude an interested party from defending its interests throughout the remainder of the investigation. The representative of the Russian Federation confirmed that the registration requirements for an interested party must be specified in the initiation notice and, that reasonable efforts would be made to notify all interested parties on the registration requirements and that all interested parties would be given sufficient time to register. He further explained that interested parties would be deemed as non-cooperative, if they did not respond to their questionnaire, within the period specified in the questionnaire, or within a longer period, if it was granted in response to a request from the interested party. Relevant information would be sent to registered interested parties only and the duty rate for non-cooperating parties would be determined on the basis of facts available from other sources.

607. A Member asked for confirmation that the comments and arguments presented by interested parties throughout the course of the investigation would be addressed by the competent authority and requested an explanation of the manner in which the competent authority would do this. The representative of the Russian Federation confirmed that all comments and arguments must be addressed to the competent authority in writing and would be taken into consideration in the investigations.

608. A Member referred to paragraph 3 of Article 30, paragraph 2 of Article 39 and paragraph 2 of Article 40 of the Agreement of 25 January 2008, which stated that decisions pertaining to trade remedies would be published by the CU Commission in the "official print publication" and asked the representative of the Russian Federation to identify the official journal and/or national newspapers, which would publish decisions pertaining to trade remedy proceedings. This Member also enquired whether such decisions would also be made available online. The representative of the Russian Federation confirmed that the decisions pertaining to trade remedies would be published in the official publication of the CU Parties. Moreover, the decisions were required to be published on the website of the competent authority. Besides, in accordance with Articles 29.11 and 39.2 of the Agreement of 25 January 2008, the competent authority must notify in writing the exporting country on the imposition of an anti-dumping or countervailing measure and about any other decision concerning application of a trade remedy measure.

609. A Member referred to paragraph 7 of Article 7 of the Agreement of 25 January 2008, which stipulated that the CU Commission might impose a special duty or safeguard on imports of agricultural products without conducting a prior investigation and asked the representative of the Russian Federation to describe the conditions in which such an action would be warranted. This Member also enquired how the CU Commission would ensure that such an action was consistent with the WTO Agreement on Safeguards, which required an investigation to find serious injury, or threat of serious injury, to the domestic industry, prior to the application of a measure, or consistent with Article 5 of the WTO Agreement on Agriculture. The representative of the Russian Federation explained that paragraph 7 of Article 7 related to special safeguard measures in respect of agricultural products, which were introduced in accordance with the WTO Agreement on Agriculture. In accordance with this Article, a special duty on agricultural products might be imposed only if the growth of imports of the product to the single customs territory of the Parties' State surpassed the baseline levels. Specific conditions for determination of baseline level were stipulated in paragraph 8 of Article 7 of the Agreement of 25 January 2008.



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