GCC Common Law
of Anti-dumping, Countervailing Measures and Safeguards
(Rules of Implementation)
Preamble
Inspired by the basic objectives of the Cooperation Council for the Arab States of the Gulf (GCC), and
In line with the objectives of the GCC Economic Agreement seeking to achieve economic integration among the GCC Member States, and
Recognizing the importance of the role the GCC industry plays in the economies of the GCC Member States,
The GCC Member States have found out that they should take appropriate measures against the injurious practices in international trade exercised by Non-member countries that cause or threaten material injury to an established GCC industry or retard the establishment of such industry.
In the light of the above, the Supreme Council, at its 24th Session held at Kuwait (21-22 December 2003) has adopted the GCC Common Law on Anti-dumping, Countervailing Measures and Safeguards to be a binding law as from January 1st 2004. To that effect, the Supreme Council has instructed the Industrial Cooperation Committee (ICC) to prepare the relevant Rules of Implementation within the first half of year 2004, provided that such law shall come into force after thirty days following the adoption of the said Rules of Implementation by the ICC.
Accordingly, the ICC has adopted the said Rules of Implementation at its 23rd meeting held at Kuwait (11 October 2004).
The Secretariat-General would like to extend its utmost thanks and appreciation to all the technical committees that have faithfully and diligently contributed to the preparation of this law to support the industrial process and increase the industrial sector’s contribution to the national income of the GCC States.
PART ONE
GCC Common Law on Anti-dumping, Countervailing Measures and Safeguards
GCC Common Law on
Anti-dumping, Countervailing Measures and Safeguards
Article 1
Objective and Scope
The objective of the present law is to prevent the GCC economies from the injurious practices in international trade that cause or threaten material injury to an established GCC industry or retard the establishment of such industry which can be achieved by taking appropriate GCC measures against such practices.
These practices include:
1. Dumping
2. Subsidy
3. Unjustifiable increase in imports
Article 2
Definitions
The following terms shall have the meanings assigned against each, unless the context otherwise requires:
“Council”: the Cooperation Council for the Arab States of the Gulf (GCC)
“Member States”: GCC Member States
“Ministerial Committee”: GCC Industrial Cooperation Committee (ICC)
“Permanent Committee”: the committee concerned with the prevention of the GCC economies from the injurious practices in international trade exercised by Non-Member countries.
“Technical Secretariat”: Technical Secretariat of the Permanent Committee.
“Dumping”: exportation of products to the GCC States at an export price lower than their normal price in the course of ordinary trade.
“Subsidy”: a direct or indirect financial contribution by the government of the country of origin or any public body within that country.
“Unjustifiable increase of imports”: the importation into the GCC States of non-dumped or non-subsidized products in large quantities either in absolute terms or relative to the domestic production which cause serious injury to an established GCC industry.
“GCC markets”: Overall markets of the GCC Member States.
“Products under investigation”: the products under investigation as stated in the complaint.
“Anti-dumping measures”: proceedings and measures taken against dumping.
“Countervailing measures”: measures taken against prohibited or actionable subsidy.
“Safeguards”: Measures taken against the unjustifiable increase of imports.
“Rules of Implementation”: Rules for implementation of the provisions of this law. These Rules of Implementation spell out the details and clarifications of certain technical terms provided for herein as well as any other terms that need to be provided for in these Rules of Implementation.
Article 3
Imposition of Measures
Anti-dumping or countervailing measures shall be imposed on the dumped or subsidized products imported into the GCC States if they are found to cause or threaten material injury to an established GCC industry or retard the establishment of a GCC industry.
Safeguard measures shall be imposed on the products imported into the GCC markets in an unjustifiable increase, absolute or relative to production, that may cause or threaten material injury to a GCC industry directly producing like or competitive products.
Article 4
Provisional Measures
In urgent circumstances where delay may cause a non-remediable injury, provisional measures may be taken pursuant to the conditions and stipulations provided for in the Rules of Implementation.
Article 5
Definitive measures
Definitive measures aimed at confronting dumping, subsidies or unjustifiable increase of imports may be taken where investigation definitely proves the occurrence of dumping, subsidy or unjustifiable increase in imports, and where the public interest of the GCC Member States necessitates the imposition of such measures. Such measures may be suspended, reduced or increased.
Article 6
Forms of Measures
Anti-dumping, countervailing measures and safeguards can take any forms including, inetr alia, the imposition of customs duties or quantitative restrictions or both.
Article 7
Complaint and investigation proceedings
The Permanent Committee shall determine, pursuant to the provisions of the Rules of Implementation, whether to keep the complaint, initiate investigation proceedings, terminate it, take any provisional measures or accept price undertakings.
Article 8
Composition of the Permanent Committee
The Permanent Committee shall be composed of representatives of the governments of the Member States. The head of the delegation of each Member State shall be at deputy minister (undersecretary) level or his authorized representative. The authorized representative shall have the same powers vested unto the deputy minister (undersecretary).
The Permanent Committee shall be chaired in accordance with the GCC presidency regulation.
The Rules of Implementation spell out the rules for formation of the committees and secretariat as well as the detailed and procedural provisions for preventing the practices injurious to international trade exercised by Non-member countries against the GCC States and the relevant forms, papers and documents. The PC Rules of Procedures describe the work system, places and dates of holding its ordinary and extraordinary meetings, the majority required for holding its meetings, decision making and the provisions related to the implementation of its decisions.
Article 9
Functions of the Permanent Committee
In addition to the other functions mentioned in other Articles herein, the Permanent Committee shall exercise the following functions in particular:
1. Take the necessary measures and procedures under the provisions of this Law, including the imposition of provisional measures and price undertakings.
2. Establish committees, including investigation committees, and the relevant administrative units preventing such practices pursuant to the provisions of the Rules of Implementation. To this effect, the PC shall be empowered to seek advice and request information from any source as it deems appropriate.
3. Propose imposition of definitive anti-dumping and countervailing duties to prevent subsidies and submit the same to the Ministerial Committee. Also propose imposition of definitive safeguard measures to prevent the unjustifiable increase of imports.
4. Provide technical advice and support to the GCC producers facing claims related to dumping, subsidy or safeguards in other countries and follow up the proceeding of such claims.
5. Promote awareness of the concepts of dumping, subsidy and safeguards in the GCC States.
6. Propose appropriate solutions for settlement of the disputes that may arise between Member States over interpretation of the present law.
7. Adopt the Rules of Procedures
8. Participate in the activities of the relevant international organizations and events.
9. Establish subcommittees when necessary.
10. Carry out any other functions per the Rules of Implementation.
Article 10
Ministerial Committee
The Industrial Cooperation Committee (ICC) shall take final decisions in the following matters:
1. Approve the definitive measures relating to anti-dumping, countervailing measures or safeguards, or suspending, terminating, increasing or reducing such measures.
2. Settlement of the disputes that may arise between Members over interpretation of this law.
3. Adopt the Rules of Implementation.
4. Consider the complaints related to the resolutions taken for implementing the provisions of this law.
Article 11
Technical Secretariat of the Permanent Committee
The Technical Secretariat of the Permanent Committee shall perform all administrative and technical activities of the Permanent Committee and shall carry out its duties and functions as set forth in the Rules of Implementation.
Article 12
Appeal
The judgments given under this law by the Ministerial Committee or the Permanent Committee may be appealed against before a competent juridical board composed of the Member States and chaired by a jurist of the GCC States.
Article 13
Confidentiality of information
The persons or entities involved in investigation and implementation of measures, procedures or decisions under this law and the Rules of Implementation thereof shall maintain confidentiality of the information and details supplied by the interested persons. Such information and details may not be disclosed unless by a prior written approval of the person supplying such information and details.
Article 14
Penalties
Without prejudice to any other sterner penalties provided for in any other law, a fine, commensurable to the damage incurred, shall be imposed on the violation of disclosing the confidential information provided for in the preceding Article. The method of calculating such fine shall be explained by the Rules of Implementation of this law.
Article 15
Rules of Implementation
The Industrial Cooperation Committee shall issue the Rules of Implementation of this law.
Article 16
The Financial and Economic Cooperation Committee (FECC) shall be authorized to interpret and amend the present law in coordination with the Industrial Cooperation Committee.
Article 17
Coming Into Force
This law shall come into force as of January 1st 2004 and shall be published in the official gazettes of the Member States.
PART TWO
Rules of Implementation
Of the
GCC Common Law on Anti-dumping, Countervailing Measures and Safeguards
Rules of Implementation
Of the GCC Common Law on Anti-dumping, Countervailing Measures and Safeguards
SECTION (I)
General Provisions
Article 1
In applying these Rules of Implementation, the following words and terms shall have the same meanings defined in Article (2) Of the GCC Common Law on Anti-dumping, Countervailing Measures and Safeguards, unless the context otherwise requires.
“Material injury”: the injury that seriously impairs the GCC industry.
“Threat of material injury”: the imminent injury that results in an adverse effect on the GCC industry.
“the amount of subsidy”: the sum representing the benefit which the subsidy recipient would get.
“the complaining party”: the GCC industry filing the complaint or its authorized representative.
“Like products”: GCC products or any other products that are similar or identical in all aspects to the product in question.
“the exporting country”: the government or regional or local authority of a foreign country, a body or organization exercising authority on behalf of an association of foreign countries or any person or body agency those entities.
“interested parties”: producers whose industry inputs incorporate the product under investigation, the public or private bodies representing consumers or protecting their interests, governments of the exporting countries or any other national or foreign parties having interest in a case under investigation.
“GCC industry”: the GCC producers of the like whose collective output production represents a major proportion of the GCC production of those products.
“independent buyer”: the buyer who is in no way related to the importer; there is no commercial or production partnership between the buyer and the importer in any other business, they are not directly or indirectly controlled by a third party or members of the same family.
“the margin of dumping”: the difference between the normal price and the export price.
“normal price”: the price at which the products are sold, in the ordinary course of trade, in the domestic markets of the country of origin or exportation plus the overheads and the usual profit margin, or the price at which like products are exported to a third country.
“export price”: the price of the products paid or payable by the importer without incurring him any charges or costs beyond those payable when products are sold for domestic consumption in the country of origin or exportation.
“Safeguards against the unjustifiable increases in imports”: measures taken against the importation into the GCC States of non-dumped or non-subsidized products in large quantities, either absolute or relative to domestic production, which cause or threaten material injury to an established GCC industry producing like or competitive products.
Article 2
The procedures, duties and measures provided for herein apply to the imported products released by a GCC customs office. However, the investigation procedures provided for herein shall not prevent an imported product to be released by customs just because it is under investigation.
Article 3
The decision to keep the complaint (application) or to initiate or terminate investigation, or to take any provisional measures, accept price undertakings or any other relevant decisions, procedures or measures shall be effected by a decision of the Permanent Committee in the light of the investigation findings.
Approval of the definitive measures relating to anti-dumping, countervailing measures or safeguards, suspension, termination, increasing or reducing such measures shall be effected by a resolution of the Ministerial Committee based on a proposal by the Permanent committee.
Article 4
The Technical Secretariat (TS) shall monitor and follow up implementation of the PC decisions. The functions, competency and administration, including information management, rules of procedures and financial rules, of the Technical Secretariat shall be specified by a resolution of the PC.
Article 5
The Technical Secretariat shall submit to the PC comprehensive periodic quarterly reports containing information and statistics about its activities as well as the activities of the investigation committees and the registered or tried cases and the relevant time periods thereof. In addition to the other duties and functions entrusted to it herein.
Article 6
The Technical Secretariat shall keep registers of the filed complaints (applications) reflecting all the relevant procedures and actions taken. The TS shall also keep an archive of the confidential data and information that may be accessed only by members of the investigation committees. These registers and non-confidential data may be disclosed to interested parties other than committee members upon a decision by the PC chairman, when so required.
Article 7
A Secretariat shall be established for the PC, under supervision of the Technical Secretariat, which would undertake organization of the committee works preparation for its meetings, submission of transactions, drafting its resolutions and performance of any duties assigned to it by the PC. For the purpose of carrying out its duties, the said Secretariat may request information, studies and reports.
Article 8
The PC Secretariat shall prepare a minute of each meeting covering the topics that have been examined with the conclusions and recommendations of the committee thereon. The minute shall be signed by the PC chairman or his representative, the PC members and secretary.
Article 9
The Technical Secretariat shall be headed by an official at a director general level whose appointment, duties, salary and other benefits shall be determined by the PC.
Article 10
Investigation committees, for each separate case, shall be composed of a chairman and a number of investigators to be nominated by the PC. Composition of the investigation committee shall remain unchanged until final settlement of the case for which it was formed. Nomination of the committee members or appointment of the deputy member can be changed by the same legal tool.
Article 11
Investigation committees are fully independent and shall submit their reports including the investigation findings and recommendations to the PC. A member who does not support a recommendation(s) shall write down the relevant reasons in the said report.
Article 12
1. Once the complaint (application) has been accepted, the investigation committee shall take the necessary procedures to invite the countries exporting the products subject of complaint for conducting consultations with a view to reaching solutions acceptable to both parties.
2. The investigation committee shall, during the course of investigation, give the opportunity to conduct such consultations.
3. Conducting of those consultations shall not prevent the committee from initiating and completing the investigation.
Article 13
The Technical Secretariat shall establish a secretariat for each investigation committee. Such secretariats shall undertake organization of the committee works, scheduling their tasks, writing down their reports and any other duties assigned to them by those committees.
Article 14
The duties collected under this law shall be deposited with an independent account to be at the disposal of the Permanent Committee pursuant to the rules laid down by the Ministerial Committee.
Section II
Complaint and investigation proceedings
Article 15
1. For a complaint to be acceptable, it has to be filed by the GCC industry or its representative, by the concerned chamber of Commerce & Industry, producers union or by any ministry in charge of the production sector in any of the GCC Member States.
2. A complaint against dumping, subsidy or an unjustifiable increase in imports shall be submitted to the Technical Secretariat in writing on the form prepared for this purpose. The complaining party shall attach with his complaint a non-confidential summary of adequate details explaining the subject matter of the submitted confidential information.
3. The complaint shall provide evidences proving the occurrence of dumping, subsidy or an unjustified increase in imports and the injuries inflected as a result of such practices.
4. The complaint shall contain information that is reasonably available with the complaining party. The complaining party shall not be required to furnish details or information that are difficult to obtain, or that represent an irreasonable burden.
5. The PC may, in exceptional cases, order to investigate a complaint filed by a party other than those referred to in paragraph (1) above, when there are adequate evidences proving the occurrence of dumping, subsidy or an unjustified increase in imports and subsequent injuries.
Article 16
Where a complaint against dumped or subsidized imports that have materially retarded the establishment of a GCC industry is filed, the following details or information shall be stated or attached in the complaint:
1. The benefit of this industry for the Member States and the feasibility study thereof.
2. A proof that such GCC industry has been or will be established, and the estimated time for establishing it.
3. All agreements and contracts relating to the completion or expansion of the project.
4. The loans granted or to be granted or under negotiation.
5. All evidences supporting continuation of this industry.
Article 17
The Permanent Committee shall receive the complaint and the chairman shall give his decision thereon. Such decision shall be notified to the complaining party within 7 days following the date when the complaint was tried. The decision taken shall be one of the following:
1. Accept the complaint in principle and referring it to the Technical Secretariat for registration and investigation once it is initially proven that the furnished details, information and evidences are adequate for conducting investigation pursuant to the provisions of this law and the Rules of Implementation thereof, or
2. Return the complaint due to incomplete information and details, or
3. Reject the complaint for incompetence
Article 18
The investigation committee shall, within 30 days following the date formed, examine the complaint for accuracy and adequacy of the furnished evidences, and present a preliminary report to the PC recommending to reject the complaint or to initiate investigation specifying the proposed investigation period.
Article 19
The Permanent Committee shall, within 30 days following the date of examining the preliminary report, take a decision rejecting the complaint and notify the complaining party accordingly.
Article 20
Should the Permanent Committee decide to initiate investigation, the complaint shall be supported by those domestic producers whose production output constitutes no less than 50% of the total production of the like product. However, investigation may not be initiated if the domestic producers supporting the complaint constitute less than 25% of the total domestic production of the like product. The decision taken shall be published in the official gazette of the Technical Secretariat within 10 days following the issuance of such decision. The date of notice shall be the date of initiating the investigation, provided that such notice shall include the following:
1. A thorough description of the product subject of complaint, including the technical character