NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGREEMENTS

Replies to QuestionS Posed by china[1]
Regarding the Notification of
the russian federation[2]

The following communication, dated and received on 28 April 2025, is being circulated at the request of the delegation of the Russian Federation.

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The Russian Federation thanks China for the questions posed in connection with the notification regarding the amendments to the Protocol on Application of Safeguard, Anti-Dumping and Countervailing Measures with respect to Third Countries (1^st and 2^nd Packages of Amendments) and replies as follows:

Question 1

Section IV is amended by adding subsection 11 "Determination of absorption of an anti‑dumping duty". Please elaborate Russian Federation's general understanding on the WTO‑consistency of anti-absorption mechanism.

Reply:

Anti-absorption review is aimed at preventing and addressing possible absorption of the export price that results in increased dumping. The mechanism is fully compliant with the WTO law.

Question 2

Article 120.5 stipulates that "(w)ithin the period established in the notice of the initiation of the review for the purposes of determining the absorption of an anti-dumping duty interested parties shall have the right to provide reasoning for the decrease in export prices or the decrease, absence of movement, or insufficient increase in the resale prices of the imported product in the Union market, including the evidence that the amendment of the normal value is necessary." Please clarify what kind of situations could constitute such reasons, and how long time interested parties would have for submitting such reasoning and supporting evidences.

Reply:

The reasoning would be case-specific and would depend on the particular situation of an interested party.

Decrease in export prices or the decrease, absence of movement, or insufficient increase in the resale prices may be caused by different factors, including the changes in the cost of production, reduction in profits on resales, etc. The amendment of the normal value could also be necessary due to, inter alia, changes in the cost of production.

The period for submitting such evidence will be provided in the notice of initiation of an anti‑absorption review. Normally, the period for providing evidence is 60 days from the date of initiation.

Question 3

Article 120.7 stipulates that "(i)n cases where the recalculated dumping margin exceeds the dumping margin on the basis of which the anti-dumping duty applied was established, the Commission shall have the right to increase the rate of the anti-dumping duty applied by the amount necessary to eliminate this difference." Please clarify, when the original investigation was conducted on a sample basis, whether the all-others rate will be influenced if one of the selected respondents would have a higher rate in a later anti‑absorption investigation.

Reply:

The increase of the rate of the anti-dumping duty will affect the producers or exporters that are found to have absorbed the anti-dumping duty.

Question 4

Article 120.7 stipulates that "(i)n cases where the recalculated dumping margin does not exceed the dumping margin on the basis of which the anti-dumping duty applied was established, the anti‑dumping measure shall continue to be applied without changes." Please clarify whether the original anti-dumping measure would be terminated if the dumping margins calculated in the anti‑absorption investigation are all zero or de minimis, and, if not, whether it is consistent with Art. 5.8 of the Antidumping Agreement.

Reply:

The purpose of the anti-absorption review is to establish the absorption of the anti-dumping duty and remove the effect of such absorption. The anti-absorption review procedure does not result in termination of the anti-dumping measure.

The termination of original anti-dumping measure is possible pursuant to other procedures, including the expiry or changed circumstances review.

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