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REGULATIONS CONCERNING ANTI-DUMPING AND ANTI-SUBSIDY

    Article 2  Anti-dumping or anti-subsidy measures shall be taken in
pursuance of the provisions of these Regulations in respect of import
products adopting the form of dumping or subsidy and causing substantial
damage to the established related domestic industries or producing threat
of substantial damage therefrom, or creating substantial obstacles in the
establishment of related domestic industries.
Chapter II  Dumping and Damage

    Article 3  Export price of an import product lower than its normal
value shall be construed as dumping.

    Article 4  The normal value shall be determined according to the
following methods:

    (1)Identical or similar products of the import product with comparable
price in the market of the exporting country, the said comparable price
shall be the normal value;

    (2)Identical or similar product of the import product without comparable
price in the market of the exporting country, the comparable price of the
said identical or similar product for export to a third country or the
production cost plus reasonable expenses and profit shall be the normal
value.

    Article 5  Export price shall be determined according to the following
methods:

    (1)An import product with price of actual paid purchase price or payable
purchase price, the said price shall be the export price;

    (2)An import product without price of actual paid purchase price or
payable purchase price, or the price of which not determinable, the price
at which the said import product first resold to an independent purchaser
or the price computed by the Ministry of Foreign Trade and Economic Coopera-
tion in consultation with the General Administration of Customs on a reasonable
basis shall be the export price.

    Article 6  The margin of the export price of an import product lower
than its normal value shall be the range of dumping.

    Fair and rational comparison should be made of the export price and
normal value of an import product and the range of dumping determined
thereof.

    Article 7  The damage includes the substantial damage caused by dumping
to the established related domestic industries or the threat of substantial
damage produced therefrom, or the substantial obstacles created for the
establishment of related domestic industries.

    Article 8  The following particulars should be examined in the
determination of damage caused by dumping to domestic industries:

    (1)Quantity of a dumping product including the total volume of the
dumping product or the increment in relation to the identical or similar
domestic product and the possibility of a great increment;

    (2)Price of a dumping product including the price reduction of the
dumping product or its impact on the price of the identical or similar
domestic product;

    (3)Impact of a dumping product on the domestic industry;and

    (4)Production capacity, export capability and inventory of a dumping
product of the exporting country.

    Article 9  Anti-dumping investigation involving an import product
of more than two countries, cumulative evaluation of the impact of the
related import product may be carried out.

    Article 10  The domestic industry shall mean all the producers of the identical or similar product within the territory of the People's
Republic of China, or the producers whose total volume of production
take up large part of the total volume of production of the identical
or similar domestic product; however, domestic producers who are related
to the export operators or the import operators, or who themselves are
import operators of the dumping product, can be excluded.
Chapter III  Anti-dumping Investigation

    Article 11  Domestic producers of the identical or similar product
of an import product or relevant organizations(hereinafter referred to as
the applicant) may, pursuant to the provisions of these Regulations, submit
written applications for anti-dumping investigation to the Ministry of Foreign Trade and Economic Cooperation.

    Article 12  The application shall include the following contents:

    (1)Names and addresses of the applicant and the producers he or she
represents;

    (2)Name, category, serial number in the tariff schedule of the import
product as well as the name and category of the identical or similar domestic
product;

    (3)Quantity and price of the dumping product and its impact on the
domestic industry;

    (4)The cause and effect relationship between the dumping and damage; and

    (5)Other contents prescribed by the Ministry of Foreign Trade and
Economic Cooperation.

    The application should enclose necessary evidences.

    Article 13  The Ministry of Foreign Trade and Economic Cooperation
shall, upon receipt of the written application of the applicant, examine
the application and the evidences enclosed therewith; whether a case shall
be recorded for investigation or not shall be decided on upon consultation
with the State Economic and Trade Commission.

    Article 14  In case of extraordinary circumstances when the Ministry
of Foreign Trade and Economic Cooperation has sufficient evidence to come
to the view that there exists the cause and effect relationship between
the dumping and damage, the Ministry may, upon consultation with the State
Economic and Trade Commission, record a case for investigation on their own.

    Article 15  The period of anti-dumping investigation shall be twelve
months starting from the date of announcement of the decision on the
recording of the case for investigation to the date of announcement of final arbitration which can be extended to eighteen months under extra-
ordinary circumstances.

    Article 16  The Ministry of Foreign Trade and Economic Cooperation
shall make an announcement on the decision whether a case shall be recorded
for investigation or not and notify such parties interested as the applicant,
known export operators and import operators and the government of the exporting
country.

    Article 17  Upon the decision to record a case for investigation,
the Ministry of Foreign Trade and Economic Cooperation in conjunction with
the General Administration of Customs carry out investigation of the dumping
and the range of dumping, the State Economic and Trade Commission in conjunc-
tion with the departments concerned under the State Council conduct investiga-
tion of the damage and the extent of damage, the Ministry of Foreign Trade and
Economic Cooperation and the State Economic and Trade Commission shall make
their respective preliminary arbitration on the basis of the results of investigation which shall be announced by the Ministry of Foreign Trade
and Economic Cooperation.

    Whereas the dumping and damage are established in the preliminary
arbitration, further investigation shall be carried out on the dumping,
the range of dumping, the damage and the extent of damage pursuant to
the provision of the preceding paragraph, and the Ministry of Foreign
Trade and Economic Cooperation and the State Economic and Trade Commission
shall make their respective final arbitration which shall be announced by
the Ministry of Foreign Trade and Economic Cooperation.

    Article 18  Anti-dumping investigation shall be terminated in the
event of any of the following circumstances which shall be announced by
the Ministry of Foreign Trade and Economic Cooperation:

    (1)The application withdrawn by the applicant;

    (2)There exists no dumping and damage in the preliminary arbitration;

    (3)There exists no dumping and damage in the final arbitration; and

    (4)The range of dumping or the import volume of the dumping product
may be neglected and not counted.

    Article 19  In the course of investigations conducted by the Ministry
of Foreign Trade and Economic Cooperation in conjunction with the General
Administration of Customs and by the State Economic and Trade Commission
in conjunction with the departments concerned under the State Council,
investigative questionnaire can be distributed to the interested parties
and sampling investigations carried out; at the request of the interested
parties, opportunities shall be provided for the interested parties to
make representations.

    The Ministry of Foreign Trade and Economic Cooperation may despatch
staff to the countries concerned to conduct investigation when it deems
necessary except that the countries concerned raise objections.

    Article 20  In the course of investigations conducted by the Ministry
of Foreign Trade and Economic Cooperation in conjunction with the General
Administration of Customs and by the State Economic and Trade Commission
in conjunction with the departments concerned under the State Council,
the interested parties should explain the situation as it is and provide
relevant information. The interested parties do not explain the situation
as it is and provide relevant information, or obstruct investigation in
other forms, the Ministry of Foreign Trade and Economic Cooperation and
the State Economic and Trade Commission may make the arbitration on the
basis of existing materials.

    Article 21  The Ministry of Foreign Trade and Economic Cooperation
and the State Economic and Trade Commission should allow the applicant and
the interested parties to refer to information related to the case save
that the information belongs to the secret file.
Chapter IV  Anti-dumping Measures

    Article 22  In case of established dumping by the preliminary arbitration
and damage caused to the domestic industry therefrom, the following interim
anti-dumping measures may be taken:

    (1)Collection of interim anti-dumping duty in accordance with prescribed
procedures;

    (2)To demand that cash deposit or security in other forms be provided.

    The amount of interim anti-dumping duty and the amount of cash deposit
and security in other forms should be commesurate with the range of dumping
determined by the preliminary arbitration.

    Collection of interim anti-dumping duty shall be decided by the Tariff
Commission under the State Council on the basis of proposals of the Ministry
of Foreign Trade and Economic Cooperation. The demand of provision of cash
deposit or security in other forms shall be decided by the Ministry of Foreign
Trade and Economic Cooperation.

    Article 23  The decision of interim anti-dumping measures shall be
announced by the Ministry of Foreign Trade and Economic Cooperation and
implemented by the Customs.

    Article 24  The period of interim anti-dumping duty shall be four
months starting from the date of announcement on the decision of interim
anti-dumping measures; it can be extended to nine months in case of extraordinary circumstances.

    Article 25  In respect of export operators or government of the exporting
country of the dumping product make the committment of proposed effective
measures to remove the damage caused by dumping to the domestic industry, the
Ministry of Foreign Trade and Economic Cooperation may, upon consultation
with the State Economic and Trade Commission, decide to suspend anti-dumping
investigation and make an announcement.

    The Ministry of Foreign Trade and Economic Cooperation may request the
export operators or the government of the exporting country of the preceding
paragraph to regularly provide relevant information on the fulfillment of the committment.

    Article 26  In respect of failure of the export operators or government
of the exporting country to fulfil the committment or withdrawal of the
committment, the Ministry of Foreign Trade and Economic Cooperation may,
upon consultation with the State Economic and Trade commission, decide to
resume anti-dumping investigation.

    Article 27  In respect of the existence of dumping by final arbitration
and the damage caused thereby to the domestic industry, anti-dumping duty
may be levied and collected in accordance with prescribed procedures and an
announcement made by the Ministry of Foreign Trade and Economic Cooperation.

    Collection of anti-dumping duty shall be proposed by the Ministry of Foreign Trade and Economic Cooperation, decided by the Tariff Commission
under the State Council and effected by the Customs.

    Article 28  The import operator of the dumping product shall be the
taxpayer of the anti-dumping duty.

    Article 29  The amount of the anti-dumping duty shall not exceed the
range of dumping determined by the final arbitration.

    Article 30  In case of the determined anti-dumping duty lower than
the interim anti-dumping duty, the overcollected portion should be refunded;
in case of the determined anti-dumping duty higher than the interim anti-
dumping duty, the undercollected portion shall not be made up any more.

    Article 31  In case of decision not to collect anti-dumping duty, the
interim anti-dumping duty collected, and the cash deposit or security in
other forms taken should be refunded.

    Article 32  In case of the following two circumstances existing side
by side, the Tariff Commission under the State Council may, upon proposal
of the Ministry of Foreign Trade and Economic Cooperation decide to retroactive-
ly collect anti-dumping duty on the import dumping product ninety days before
the announcement of the decision of interim anti-dumping measures:

    (1)The dumping product has a history of dumping causing damage to the
domestic industry, or the import operator of the dumping product is aware
or should be aware of the fact that the export operator of the said product
is dumping the product and the dumping will cause damage to the domestic
industry;

    (2)Large volume of import of the dumping product within a short period
which has already caused damage to the domestic industry.

    Article 33  The period of collection of the anti-dumping duty and
price committment in pursuance of the provisions of these Regulations shall
be five years. Within this period, the Ministry of Foreign Trade and
Economic Cooperation may, upon consultation with the State Economic and
Trade Commission, reexamine the decision on the collection of the anti-
dumping duty on its own or at the request of the interested parties, and
within twelve months starting from the date of reexamination submit its
proposal to the Tariff Commission on the revision, cancellation or retention
of the decision on the collection of the anti-dumping duty for reexamination
and decision by the Tariff Commission under the State Council which shall be
announced by the Ministry of Foreign Trade and Economic Cooperation.

    Article 34  In case of the import operator of the dumping product
having evidences to prove that the paid amount of anti-dumping duty has
exceeded the range of dumping, it may apply to the Ministry of Foreign Trade
and Economic Cooperation for refund. Upon examination and verification by the
Ministry of Foreign Trade and Economic Cooperation in conjunction with the
General Administration of Customs, the Ministry of Foreign Trade and
Economic Cooperation shall put forth a proposal of refund for decision
by the Tariff Commission under the State Council and implementation by
the Customs.

    The decision on the refund of the preceding paragraph shall be made
within eighteen months starting from the date of receipt of the application
for refund.

    Article 35  The Ministry of Foreign Trade and Economic Cooperation,
the State Economic and Trade Commission and the departments concerned under
the State Council may take appropriate measures to prevent acts of evading
the anti-dumping measures.
Chapter V  Special Provisions on Anti-subsidy

    Article 36  Financial assistance or interest provided directly or
indirectly by foreign governments or public institutions to industries and
enterprises shall be subsidy.

    Article 37  These Regulations are applicable to import products with
subsidies. However, these Regulations shall not be applicable to import
products with subsidies for the sole purpose of industrial research and
development, supporting the backward regions and environmental protection.

    Article 38  The net amount of subsidy accepted by the subsidized
product shall be the amount of subsidy.

    The amount of subsidy should be calculated in a fair and reasonable
manner.

    Article 39  The relevant provisions of Chapters II, III and IV of these Regulations shall be applicable to the damage caused by subsidy,
anti-subsidy investigations and implementation of anti-subsidy measures.
Chapter VI  Supplementary Provisions

    Article 40  In case of any country or region adopting discriminatory
anti-dumping or anti-subsidy measures against export products of the People's
Republic of China, the People's Republic of China may take corresponding
measures against the said country or the said region in the light of actual circumstances.

    Article 41  The Ministry of Foreign Trade and Economic Cooperation and
the State Economic and Trade Commission may, in conjunction with the
departments concerned under the State Council work out related specific
measures in accordance with these Regulations.

    Article 42  These Regulations shall enter into force as of the date
of promulgation.