World Trade
Organization		
		
	G/SCM/N/1/KOR/4
25 April 2001	
	(01-2063)	
		
Committee on Subsidies
and Countervailing Measures	Original:  	English	

NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 32.6 OF THE AGREEMENT

KOREA

	The following communication, dated 20 April 2001, has been received from the Permanent Mission of Korea.

_______________

	Pursuant to Article 32.6 of the Agreement on Subsidies and Countervailing Measures, the Government of Korea hereby wishes to notify the revised Customs Act and its sub-regulations concerning countervailing measures, which entered into force on 1 January 2001.  Please note that for the convenience of the readers, the Act has become to provide separate provisions for countervailing measures, no longer referring to those for anti-dumping measures.

THE CUSTOMS ACT

1.	Section 2. Countervailing Duty

Article 57 (Subjects for Imposition of Countervailing Duty)

1.	In cases where the request for imposition has been made by a person prescribed in the Presidential Decree and having interest in the domestic industry, or the Minister of relevant authorities, and where it is confirmed through an investigation that importation of a product granted with subsidies or bounties directly or indirectly, with regard to its manufacture, production, or export in a foreign country (hereinafter referred to as “subsidies, etc.”), results in any of the following Sub-paragraphs (hereinafter referred to as "material injury, etc." in this section), and it is deemed necessary to protect the domestic industry concerned, a duty in an amount not more than the amount of the subsidies, etc. (hereinafter referred to as “countervailing duty”) may be additionally imposed on such products, by designating the products and exporters or exporting country through the Ordinance of the Minister of Finance and Economy.

(1)	material injury to a domestic industry is caused or threatened;
(2)	material retardation of the establishment of a domestic industry is caused.

Article 58 (Investigation on Subsidies Granted, Material Injury, etc)

1.	Investigation on the facts of granting subsidies, material injuries, etc. shall be conducted as prescribed by the Presidential Decree.

2.	When the Minister of Finance and Economy imposes countervailing duty, if it is deemed necessary to consider enhancing competitiveness of related industries, price stabilization, cooperation in trade, and etc., those factors may be examined and reflected.

Article 59 (Provisional Measures prior to Imposing Countervailing Duty)

1.	When an investigation is initiated to determine whether or not a countervailing duty is to be imposed and the import of a product for which subsidies, etc. have been granted has caused any cases referred to in the following Sub-paragraphs, the Minister of Finance and Economy may, even before the investigation is concluded, adopt a measure to order to impose a provisional countervailing duty or to provide a security, which is not greater than the amount equivalent to the subsidies presumed to have been granted, by designating the exporter or exporting country of the product and the period (hereinafter referred to as "provisional measures" in this section) as prescribed by the Presidential Decree in order to protect the domestic industry.

	(1)	in case where it is confirmed that there exist sufficient evidences to presume the fact of material injury, etc. to domestic industry 

	(2)	in case where the undertakings as referred to in Article 60 were withdrawn or not complied with or where materials on the fulfilment of such undertakings were not presented, and where there exists the best information available

2.	In cases where the investigation is terminated due to a withdrawal of request for the imposition of a countervailing duty on the products to which a provisional measure was taken, or where the determination on whether the countervailing duty is to be imposed is made, or the undertakings referred to in the provisions of Article 60 are accepted, the provisional countervailing duty paid shall be refunded or the security provided shall be released as prescribed by the Presidential Decree; provided that in cases of the following Sub-paragraphs, when the amount of countervailing duty exceeds that of provisional countervailing duty, the difference shall not be collected, and when the amount of countervailing duty is lower than that of provisional one, the difference shall be refunded. 

	(1)	In cases where the undertakings under the provisions of article 60 is accepted after a fact of granting subsidies, etc. and material injury, etc. caused thereby is determined to exist after investigation thereon. 

	(2)	In cases where a countervailing duty is imposed retroactively under the provisions of provisio of Article 61.

Article 60 (Offer of Undertakings related to Countervailing Duty)

1.	In cases where a preliminary investigation to determine whether or not the countervailing duty, as referred to in Article 57, is to be imposed, determines affirmatively a fact of granting subsidies, etc. and material injury, etc. caused thereby, the government of the country exporting the products concerned or the Minister of Finance and Economy, as prescribed by the Presidential Decree, may offer undertakings to adopt any proper measure to abolish or curtail the subsidies, etc., for the products, or to eliminate the injurious effect of the subsidies, etc. on the domestic industry, and the exporter of the products concerned may, with the consent of the government of the exporting country, offer an undertaking to revise the price so that the injurious effect of the subsidies, etc., on the domestic industry could be eliminated.

2.	If the undertakings, as referred to in Paragraph 1, are accepted, the Minister of Finance and Economy shall have the investigation suspended or terminated without taking any provisional measures or imposing the countervailing duty. However, if the Minister of Finance and Economy deems it necessary or the government of the exporting country requests to have the investigation on the injury continued, the investigation may be continued.

Article 61 (Period to Impose Countervailing Duties)

	Imposition of countervailing duties and a provisional measure shall be applied to goods imported after the date on which the respective measure was taken; provided that in case of goods to which a provisional measure was applied, if an international agreement or the Presidential Decree prescribes otherwise, countervailing duties may be imposed on that goods. 

Article 62 (Review on Countervailing Duties, etc.)

1.	The Minister of Finance and Economy, if deemed necessary, shall review the imposition of countervailing duties and undertakings under the provisions of Article 60 in accordance with the Presidential Decree, and based on the result of the review, take necessary measures including imposition of countervailing duties, changes in contents of undertakings, refund, etc. 

2.	Imposition of countervailing duties and undertakings accepted under the provisions of Article 60 shall lose their effect five years after the date of enforcement unless the Ordinance of the Minister of Finance and Economy prescribes otherwise with respect to the application period, and when their contents are changed according to the result of a review on subsidies, etc. granted and industrial injuries under the provisions of Paragraph 1, they shall lose effect 5 years after the date of enforcement of those changed contents unless the Ordinance of the Minister of Finance and Economy prescribes otherwise with respect to the application period . 

3.	Those matters necessary regarding imposition of a countervailing duty and its enforcement under the provisions in Paragraphs 1 and 2, and Articles 57 to 61 shall be prescribed by the Presidential Decree.

ENFORCEMENT DECREE OF THE CUSTOMS ACT
(Presidential Decree)

Article 72 (Subsidies, etc.)

1.	The term "subsidies, etc." as prescribed in Article 57 of the Act(hereinafter referred to as “subsidies, etc.”) refers to benefits with specificity conferred by financial contributions, etc. from a government or a public institution, etc.; provided that subsidies or bounties prescribed in the Ordinance of the Minister of Finance and Economy are excluded.

2.	The term "specificity" in Paragraph 1 refers to the case where subsidies are granted to a certain enterprise or industry, or a certain group of enterprises or industries, and its detailed criteria shall be prescribed by the Ordinance of the Minister of Finance and Economy. 
 
3.	The amount of subsidies, etc. shall be calculated as prescribed in the Ordinance of the Minister of Finance and Economy on the basis of actual benefits of the recipient. 

Article 73 (Request for Imposition of Countervailing Duty)

1.	Any interested party to the domestic industry suffering material injury, etc. as prescribed in Article 57 of the Act, or the Minister of the competent Ministry in charge of such an industry, may request to the Minister of Finance and Economy to impose a countervailing duty, as prescribed by the Ordinance of the Minister of Finance and Economy and such a request is substituted by the request for an investigation to the Trade Commission required for imposing such an countervailing duty.

2.	In applying the provisions of Article 57 of the Act, a domestic industry means the domestic production business producing all or considerable portion of total production of the like product of the product for which subsidies, etc. have been granted (a production business managed by a producer who has such special relationship with the government of exporting countries, exporters or importers of the product as prescribed in Article 23, Paragraph 1 of the Act and a production business managed by such a producer who is an importer of the imported product as prescribed by the Ordinance of the Minister of Finance and Economy may be excluded;  hereinafter the same shall be applied in this Paragraph).

3.	For the purpose of Paragraph 1, the term "an interested party to the domestic industry" means a domestic producer belonging to the domestic industry that is affected by material injury, etc., and an association, an organisation or an individual of which the domestic producers are members or which represents the interest of such a domestic producer and who is the person prescribed by the Ordinance of the Minister of Finance and Economy.

4.	When a person who has interests in the domestic industry that was affected by material injury, etc. because of import of subsidized products, desires to request an investigation under the provisions of Paragraph 1, he/she shall submit an application containing each of following elements to the Trade Commission with related documents attached.

	(1)	names of items, dimensions, characteristics, uses, names of producers, and production quantity of the product concerned;

	(2)	exporting countries and exporters, export record, possibility of exportation, and importers, import record, possibility of importation of the product concerned;

	(3)	the ex-factory price and the market price of the product concerned in the exporting country, and the export price to Korea and third countries;

	(4)	names of items, dimensions, characteristics, uses, names of producers, production quantity, factory and market prices, and the cost calculation for the like product in kind or quality or similar product in Korea;

	(5)	matters pertaining to the material injury, etc., of the domestic industry concerned caused by the importation of the subsidized product;

	(6)	contents of subsidies, etc. granted on manufacture, production, and export of the product concerned in the exporting country and the price decreasing effect of the product caused thereby;

	(7)	degree of support by domestic producers of like product in kind or quality or similar product for the investigation request; 

	(8)	If confidential treatment of the attached documents is necessary, the reason thereof; and

	(9)	other matters as deemed necessary by the Minister of Finance and Economy.

Article 74 (Initiation of the Investigation on Import of Subsidized Products and Material Injury, etc.)

1.	The Trade Commission shall, upon receiving the request for an investigation as prescribed in the latter part of Article 73, Paragraph 1, determine whether or not it will initiate an investigation on import of subsidized products and material injury, etc., and shall notify the Minister of Finance and Economy within 2 months of receiving such a request of the result of the determination thereof and the following matters:

	(1)	products subject to an investigation (in case where many products are subject to an investigation, products selected according to the Ordinance of the Minister of Finance and Economy);

	(2) 	period subject to the investigation;  and

	(3)	governments of exporting countries or exporters subject to the investigation (in case where there are many governments or exporters that  are subject to investigation, those selected according to the Ordinance of the Minister of Finance and Economy)

2.	In determining whether or not to initiate an investigation in accordance with Paragraph 1, the Trade Commission may reject such a request if the request for an investigation falls under any of the following sub-paragraphs:

	(1)	In case a person who has filed the written request is ineligible to request imposition under Article 73, Paragraph 1;

	(2)	In case sufficient documentary evidences on import of subsidized products and material injury, etc., are not submitted;

	(3)	In case the amount of subsidy or import quantity of the subsidized products is below the criteria set by the Ordinance of the Minister of Finance and Economy, or in case the material injury etc., is deemed to be insignificant;

	(4)	In case the total production by domestic producers that expressed consent to the application for an investigation does not satisfy the criteria set by the Ordinance of the Minister of Finance and Economy;  and

	(5)	In case it becomes unnecessary to initiate an investigation, e.g., a measure has been taken prior to the initiation of an investigation to eliminate any adverse effect on the domestic industry.

3.	When the Trade Commission has determined the initiation of an investigation as referred to in Paragraph 1, it shall notify the person requesting the investigation, the government of the exporting country and the exporters of such a product and other interested parties of the matters concerning the determination on the initiation of the investigation and shall publish them in the official gazette, within ten days after the determination.

Article 75 (Investigation on Import of Subsidized Products and Material Injury, etc.)

1.	The Trade Commission takes charge of the investigation on the import of subsidized products and material injury, etc., referred to in Article 57 of the Act.  In this case, the Trade Commission may, if it is deemed necessary, have public officials of related administrative agencies or concerned experts participate in the investigation.

2.	The Trade Commission shall complete a preliminary investigation on whether or not there are sufficient evidences to presume import of subsidized products and a material injury, etc. caused thereby, and shall submit a report on the results of this investigation to the Minister of Finance and Economy within three months after matters concerning the determination on the initiation of the investigation are published in the official gazette as referred to in Article 74, Paragraph 3.

3.	The Minister of Finance and Economy shall decide whether or not it is required to take such measures as prescribed in Article 59, Paragraph 1 of the Act and shall decide on the issues concerning the contents thereof within a month of the submission of a report on the results of a preliminary investigation as referred to in Paragraph 2.  However, if it is deemed necessary, the period for such a decision may be extended for a maximum of twenty days.

4.	In case the amount of subsidy or import quantity of subsidized products is below the criteria set by the Ordinance of the Minister of Finance and Economy or the material injury, etc., is deemed insignificant after a preliminary investigation referred to in Paragraph 2, the Trade Commission shall terminate the final investigation referred to in Paragraph 5.

5.	Unless there exist any special reasons prescribed by the Ordinance of the Minister of Finance and Economy, the Trade Commission shall initiate a final investigation one day after it’s submission of a report on the results of the preliminary investigation referred to in Paragraph 2,  and shall submit a report of the results of the final investigation to the Minister of Finance and Economy within three months of the day on which the final investigation is initiated.

6.	If it is necessary to extend the investigation period in connection with the investigations referred to in Paragraphs 2 and 5, or if an interested party requests an extension of the investigation period for justifiable reasons, then the Trade Commission may extend it for a maximum of 2 months.

7.	Within a month of the submission of the report on the results of the final investigation, as referred to in Paragraph 5, the Minister of Finance and Economy shall determine whether or not the countervailing duty is to be imposed, and shall determine the particulars thereof, and shall take measures that impose the countervailing duty as prescribed in Article 57 of the Act.  However, if it is deemed necessary, the period may be extended for a maximum of twenty days.

8.	The Minister of Finance and Economy shall take measures that impose the countervailing duty, as referred to in Paragraph 7, within a year of the publication date of the official gazette mentioned in Article 74, Paragraph 3.  However, if it is recognized that a special reason exists, such measure may be taken within 18 months of the publication date of the official gazette, notwithstanding the provisions of Articles 74, Paragraph 1, and Article 75, Paragraph 2, and 5 to 7.

9.	If the Trade Commission considers it necessary, it may request to the Minister of Finance and Economy to do the followings,  when it submits the results of the investigation as referred to in Paragraphs 2 and 5:

	(1)	to take provisional measures prescribed in Article 59, Paragraph 1 of the Act

	(2)	to impose countervailing duty prescribed in Article 57 of the Act

	(3)	to propose the undertakings prescribed in Article 60, Paragraph 1 of the Act

Article 76 (Withdrawal of the Application for Imposition of Countervailing Duty)

1.	If the applicant for an investigation under Article 73, Paragraph 1 wishes to withdraw the application, he/she shall submit the intention in writing to the Trade Commission.  In this case, if the Trade Commission receives such a withdrawal before it submits a report on the results of the preliminary investigation prescribed in Article 75, Paragraph 2, it may cease contemplating to determine whether or not to initiate an investigation under Article 74, Paragraph 1 or terminate the investigation prescribed in Article 75, Paragraph 2 after consulting with the Minister of Finance and Economy and the head of the administrative agency concerned, and if it receives such a withdrawal after it submits a report on the results of the preliminary investigation prescribed in Article 75, Paragraph 2, then it shall notify the Minister of Finance and Economy.

2.	Upon receiving the notification referred to in Paragraph 1, the Minister of Finance and Economy may have the investigations prescribed in Article 75 terminated, and if any provisional measures have been taken under Article 59, Paragraph 1 of the Act, withdraw the measures, after consulting with the Trade Commission and the heads of the administrative agencies concerned

3.	If the Minister of Finance and Economy withdraws any provisional measures referred to in the latter part of Paragraph 2, he/she shall refund the provisional countervailing duty paid, or release any security provided pursuant to such a provisional measure.

Article 77 (Determination on Material Injury, etc.)

1.	In cases where the Trade Commission investigates and determines the material injury, etc., as prescribed in Article 75, such investigation and determination shall be based on the substantial evidence including the followings:

	(1)	import quantity of the subsidized product (including whether or not the importation of such a product has increased significantly in absolute terms or in relative terms compared to the domestic production or consumption of the product);

	(2)	price of the subsidized product (including whether or not such a price has decreased significantly in comparison with the price of the domestic like product);

	(3)	level of the amount of subsidy, etc. (including whether or not the import price of a subsidized product has declined significantly in comparison with the normal value in the exporting country);

	(4)	output, operating ratio, inventories, sales quantity, market share, prices (including the effect of lowering prices or of suppressing price increases), profits, productivity, return on investments, cash flow, employment, wage, growth, capital supply, investment capacity, and technology development of the domestic industry;  and

	(5)	actual or potential impact of such matters as referred to in sub-paragraphs (1) and (2) on the domestic industry.

2.	In case of an investigation and determination of a material injury, etc., under Paragraph 1, a determination on the threat of material injury, etc. shall be made on the basis of facts including the following matters in addition to the matters referred to in sub-paragraphs of Paragraph 1 and the injury caused by the subsidized product shall be clearly foreseen and imminent;

	(1)	the characteristics of the subsidy, etc. in question and possible effect on trade caused thereby;

	(2)	a significant rate of increase in subsidized products that indicates a likelihood of a substantial increase in importation;

	(3)	a substantial increase in the production capacity indicating the likelihood of substantial increase in export of the subsidized product to Korea (taking into account the availability of other export markets to absorb);

	(4)	whether or not the price of the subsidized product is likely to decrease or to prevent the increase of the price of the like product and the likelihood of an increase in the demand for more imports;  and

	(5)	the inventory of the subsidized product and the inventory of the like product.

3.	With regard to the investigation and determination of the material injury, etc. under the provisions of Paragraph 1, the Trade Commission may assess the injury cumulatively when products imported from more than one country are simultaneously subject to investigation and when:

	(1)	the amount of subsidy, etc. and the quantity of import of the subsidized product satisfy the criteria set by the Ordinance of the Minister of Finance and Economy;  and

	(2)	the subsidized products compete with each other and with the domestic  like product.

4.	The Trade Commission shall investigate factors which have caused injuries to the domestic industry other than import of subsidized product and shall not consider the industrial injury etc. caused by these factors as caused by import of the subsidized product.  

Article 78 (Request for Providing Data by Interested Parties)

1.	If it is deemed necessary for the investigation under Article 58 of the Act or for the determination on whether or not countervailing duty is to be imposed, the Minister of Finance and Economy or the Trade Commission may ask for the cooperation, such as provision of relevant data, etc., to the relevant authorities, domestic producers, the government of exporting country, exporting country or exporters, importers, and interested parties. However, when asking questions to the government of exporting country or exporters for an investigation on a fact of granting subsidies, a period of 40 days or longer from the date of the questions shall be given for submitting the answers. In case that the government of exporting country or exporters request to extend the period with reasons thereof, contemplation shall be made thereon.  

2.	The Minister of Finance and Economy or the Trade Commission shall not disclose materials provided under Paragraph 1 and Article 73, Paragraph 4, for which confidential treatment is deemed to be proper because of the nature of the material, or for which confidential treatment is requested by the applicant for investigation or by the interested parties for a justifiable reason, without the express consent of the person who has provided the material.

3.	The Minister of Finance and Economy or the Trade Commission may demand the person, who has provided confidential material under Paragraph 2, to submit a non-confidential summary of such material.  In this case, if such a person is unable to submit such a summary, he/she shall submit a document stating the reason thereof.

4.	In a case where a person who has provided material refuses to make the material public although the request for a confidential treatment under Paragraph 2 is deemed unwarranted or where he/she refuses to submit the non-confidential summary referred to in Paragraph 3, without a justifiable reason, the Minister of Finance and Economy or the Trade Commission may disregard such material unless the accuracy of the material has been sufficiently demonstrated.

5.	In conducting an investigation under Article 58 of the Act and determining whether or not the countervailing duty is to be imposed, if it is difficult to conduct the investigation or to verify the material for the reason that an interested party does not provide related material or refuses or impedes the investigation of the Trade Commission, or for other reasons, the Minister of Finance and Economy or the Trade Commission may decide whether to take a measure of imposing countervailing duty on the basis of materials available.

6.	The Minister of Finance and Economy and the Trade Commission may not use any information and material acquired, and facts obtained from the interested parties in connection with the proceedings of imposition of countervailing duty for other purposes.

7.	In a case where an interested party requests to read related documentary evidence submitted under Article 73, Paragraph 4 and material submitted or informed under Paragraphs 1 and Article 81 other than those treated confidentially, the Minister of Finance and Economy and the Trade Commission shall accept such a request, unless there is a particular reason for denying the request.  In this case, the request of the interested parties for reading the material shall be made in writing, stating the reasons thereof and a list of the material requested.

8.	The Minister of Finance and Economy or the Trade Commission may give the interested parties an opportunity to state their opinion through a public hearing, etc., or to consult with other interested parties of opposing interests if it is deemed necessary or there is a request of any interested party.

Article 79 (Imposition of Countervailing Duty)

1.	The countervailing duty prescribed in Article 57 of the Act shall be imposed by setting countervailing duty rates determined for each exporter or exporting country.  However, with respect to those exporters on whom it is difficult to conduct an investigation or to verify material for the reason that they fail to submit the material prescribed in Article 78, or refuse to make the material public without a justifiable reason, or for other reasons, the countervailing duty may be imposed by setting a single rate.

2.	With respect to exporters not selected as the subject of an investigation under Article 74, Paragraph 1, the countervailing duty shall be imposed by setting a countervailing duty rate calculated by a weighted average of countervailing duty rate for exporters selected for the investigation as prescribed in the Ordinance of the Minister of Finance and Economy.  However, with respect to those who have submitted the materials prescribed in Article 78 among the exporters who exported during the period subject to the investigation but were not selected for the investigation, the provision of Paragraph 1 shall be applied.

3.	In a case where the countervailing duty is imposed by designating exporting countries under Article 57, Paragraph 1 of the Act, if a new exporter of the exporting countries, who exports after the period subject to investigation prescribed in Article 74, Paragraph 1, has a special relationship prescribed by the Ordinance of the Minister of the Finance and Economy with the exporter who is subject to the countervailing duty by Paragraph 1, a countervailing duty shall be imposed on the basis of the countervailing duty rate applied to the exporter.  However, if such a new exporter shows that he has not such special relationship, the countervailing duty may be imposed by setting separately a countervailing duty rate calculated through an investigation.  In this case, the method, procedure, etc., of the investigation may be different from those applied to the persons who were already subject to the investigation as prescribed by the Ordinance of the Minister of Finance and Economy.

Article 80 (Application of Provisional Measures)

1.	The provisional measures prescribed in Article 59, Paragraph 1 of the Act may be applied to a case where it is determined that there is sufficient evidences to presume a fact of granting subsidies and material injury, etc. thereby as a result of the preliminary investigation prescribed in Article 75, Paragraph 2 and where at least sixty days have passed since the initiation of that investigation.

2.	The application duration of the provisional measures prescribed in Article 75, Paragraph 3 shall not exceed 4 months.

3.	The security provided under Article 59, Paragraph 1 of the Act shall fall under any of Sub-paragraphs (1) to (4) of Article 24, Paragraph 1 of the Act and shall be equivalent to the amount of provisional countervailing duty.

Article 81 (Undertakings to Cease or Reduce Subsidies and to Revise the Price, etc.)

1.	If the government of exporting country or an exporter of the product, for which an investigation has been initiated in order to determine whether or not the countervailing duty is to be imposed, wishes to propose the undertaking under Article 60, Paragraph 1 of the Act, or wishes to request the continuation of the injury investigation under Article 60, Paragraph 2 of the Act, he/she shall submit such a request in writing to the Trade Commission before the Trade Commission makes a final determination in accordance with the results of the final investigation as referred to in Article 75, Paragraph 5.  In this case, the Trade Commission shall send the original documents submitted, to the Minister of Finance and Economy immediately thereafter.

2.	If the undertaking proposed under Paragraph 1 falls in any of the following Sub-Paragraphs, the Minister of Finance and Economy may accept the undertaking. However, if it is deemed difficult to secure a fulfilment of the undertaking as prescribed in the Ordinance of the Minister of Finance and Economy, the Minister of Finance and Economy does not need to accept such an undertaking.

	(1)	undertaking to revise the price immediately

	(2)	undertaking to cease granting subsidies or reduce subsidies within 6 months from the date of undertaking

	(3)	undertaking regarding proper measures to eliminate the effect of injuries of the subsidy, etc. on the domestic industry within 6 months from the date of undertaking

3.	The Minister of Finance and Economy, if it is deemed necessary, may propose an undertaking prescribed in Article 60, Paragraph 1 of the Act, by designating the government of exporting country or exporters.

4.	The Minister of Finance and Economy may not accept an undertaking under Paragraph 2 or propose an undertaking under Paragraph 3 before a determination is made that there are sufficient evidences presuming a fact of granting subsidies and material injury, etc. caused thereby, as a result of the preliminary investigation under Article 75, Paragraph 2.

5.	If the government of exporting country or exporters fails to fulfil the undertakings accepted under Article 60, Paragraph 2 of the Act, the Minister of Finance and Economy may take a prompt measure for imposing a countervailing duty, such as provisional measures based on the best information available.

6.	If it is ascertained, through a continuous investigation under the provisio of Article 60, Paragraph 2 of the Act, that there exists no material injury, etc., or that there exists no amount of subsidies, etc., the Minister of Finance and Economy shall deem the effect of the undertaking as nullified.  However, if the non-existence of a material injury, etc. or the non-existence of subsidies, etc. is deemed to have been generated by the undertaking, the Minister of Finance and Economy may have the undertaking continued for an adequately set period, and if the exporter refuses to fulfil the undertaking, the Minister of Finance and Economy may promptly take measures for imposition of a countervailing duty, such as provisional measures based on the best information available.

Article 82 (Retroactive Imposition of Countervailing Duty)

1.	The products to which provisional measures have been applied under the provisio of Article 61 of the Act and which are subject to countervailing duty are as follows:

	(1)	A product imported during the period in which provisional measures have been applied, in a case where a final determination of material injury, etc. was made, or where, although a final determination of a threat of material injury, etc. was made, it was deemed that a final determination of material injury would have been made in the absence of provisional measures;

	(2)	A product imported not more than ninety days prior to the date of the application of provisional measures, in those cases where it is necessary to retroactively impose the countervailing duty to prevent a recurrence of a material injury, etc., caused by the massive importation of a product in a relatively short period of time, and where the subsidized products have been imported causing material injury, etc., in the past or where the importer was or could have been aware of the fact of import of subsidized product and material injury, etc., caused thereby;

	(3)	A product imported not more than ninety days prior to the date of the application of provisional measures in the case where it was admitted that a material injury, etc., was caused by the importation of a product to which provisional measures were applied because of the violation of  undertaking prescribed in Article 60, Paragraph 1 of the Act.  In this case, a product imported prior to the violation of an undertaking is excluded;  and

	(4)	Other products imported during such a period as determined by the Minister of Finance and Economy under conditions prescribed by the international agreement.

2.	Any interested parties in the domestic industry, prescribed in Article 73, may request an imposition of the countervailing duty prescribed in the proviso of Article 61 of the Act by submitting evidence that the product concerned falls under any of the Sub-paragraphs of Paragraph 1 within seven days of the receipt of final determination according to the conclusion of final investigation prescribed in Article 75, Paragraph 5.

Article 83 (Liquidation of Provisional Countervailing Duty Amount, etc.)

1.	In a case that falls under Article 82, Paragraph 1 and when the amount of the countervailing duty, which was imposed on a product imported during the period in which provisional measures were applied under Article 59, Paragraph 2 of the Act, is equal to or more than that of the provisional countervailing duty, the amount of the countervailing duty shall be the same as that of the provisional countervailing duty and the difference shall not be charged, and when the countervailing duty is lower than the provisional countervailing duty, the provisional countervailing duty paid, equal to the amount of the difference, shall be refunded.

2.	In a case where any security was provided under the provision of Article 59, Paragraph 1 of the Act, and which falls under Article 82, Paragraph 1, the amount of the countervailing duty to be imposed retroactively during the period, in which the provisional measures were applied, shall not exceed that of the provisional countervailing duty.

3.	In a case where the undertaking under the provision of Article 81, Paragraph 1 is accepted after a determination that granting subsidies and material injury, etc. thereby exist is made through the final investigation under Article 75, Paragraph 5, if the final countervailing duty rate is same or higher than the provisional countervailing duty rate, the amount of the difference shall not be charged, and if the former is lower than the latter, the provisional countervailing duty, equal to the amount of the difference shall be refunded.

Article 84 (Review on the Countervailing Duty and Undertaking)

1.	If it is deemed necessary, or if any interested party or the competent Minister in charge of the industry concerned files a request for a review along with documentary evidence showing a case which falls under the following Sub-paragraphs, the Minister of Finance and Economy shall determine whether or not the review prescribed in Article 62, Paragraph 1 of the Act is to be conducted with respect to the product on which the countervailing duty is imposed or for which an undertaking is effective.

	(1)	where circumstances have changed substantially enough to modify the  countervailing duty or the undertaking after enforcement of those measures;

	(2)	where there is a chance that an injury to the domestic industry is caused by the termination of the countervailing duty or the undertaking;   

	(3)	where the countervailing duty has been paid in excess of the actual amount of subsidy, etc.

2.	A request for a review referred to in Paragraph 1 may be made after a year has passed since the countervailing duty or the undertaking has been put into force, and it shall be made before six months prior to expiration of the countervailing duty or the undertaking.  In this case, the Minister of Finance and Economy shall determine whether or not a review is necessary within 2 months of receiving the request for the review.

3.	In addition to the review conducted under Paragraph 1, the Minister of Finance and Economy may conduct a review on the appropriateness of the rate of countervailing duty imposed or an undertaking in force, and to this end he shall conduct an annual examination of the import price of the subsidized product in connection with the contents of the countervailing duty or the undertaking (including the contents changed as a result of the review) in the month under which the date of the enforcement thereof falls.

4.	In determining the necessity of a review under Paragraph 1 or 3, the Minister of Finance and Economy may consult heads of related administrative agencies and the Trade Commission, and when it is determined that a review is necessary, the Trade Commission shall carry out an investigation thereon.  In this case, the Trade Commission may conduct an investigation limited just to those parts that fall under the reasons for conducting such a review.

5.	The Trade Commission shall finish an investigation prescribed in Paragraph 4 and submit the results to the Minister of Finance and Economy within six months of the initiation of a review.  However, if it is necessary to extend the investigation period or the interested parties request an extension of the period by submitting justifiable reasons, the Trade Commission may extend the investigation period to a maximum of four months.

6.	In a case where the measures prescribed in Article 62, Paragraph 1 of the Act are necessary, the Minister of Finance and Economy shall take measures within a month of receiving the results of the investigation prescribed in Paragraph 5.  However, if it is deemed necessary, such a period may be extended to a maximum of 20 days.

7.	In a case where a review is conducted for reasons stated in Sub-paragraph (2) of Paragraph 1, a countervailing duty measure shall remain in force during the review period even though the effective period of the measure expires during the review.

8.	If it is deemed that an undertaking has lost, or might lose its effectiveness as a result of a review referred to in Paragraphs 1 or 3, the Minister of Finance and Economy may demand that the government of exporting country or an exporter carrying out such an undertaking revise the undertaking and if the government of exporting country or the exporter refuses to revise the undertaking, the Minister of Finance and Economy may take the countervailing measure on the basis of the information available.

9.	The Minister of Finance and Economy may order the Commissioner of the Customs Service to investigate and report the matters prescribed by the Ordinance of the  Minister of Finance and Economy in order to conduct a review under the provisions of Paragraph 1 or 3.
 
Article 85 (Notification to the Interested Parties and Public Notice, etc.)

1.	In the following cases, the Minister of Finance and Economy shall publish the details thereof in the official gazette, and notify the interested parties of the details in writing:

	(1)	where he has determined to take a measure prescribed in Article 57 and Article 59, Paragraph 1 of the Act or not to take such a measure;

	(2)	where he suspends or terminates an investigation by accepting an undertaking prescribed in Article 60, Paragraph 1 of the Act, or continues the investigation;  

	(3)	where he initiates a review prescribed in Article 62, Paragraph 1 of the Act, or he modifies the contents of countervailing duty measures as a result of such a review; and

	(4)	where the implementing period of countervailing duty measure is extended under the  provisions of Article 84, Paragraph 7

2.	 In the following cases, the Minister of Finance and Economy or the Trade Commission shall notify the interested parties of the details thereof:

	(1)	where a request for an investigation is rejected under Article 74, Paragraph 2, or the investigation is terminated under Article 75, Paragraph 4; 

	(2)	where the preliminary determination is made according to the preliminary investigation prescribed in Article 75, Paragraph 2;

	(3)	where the final determination is made according to the final investigation prescribed in Article 75, Paragraph 5.

	(4)	where the period of investigation is extended under Article 75, Paragraph 6 and the proviso of Article 84, Paragraph 5;

	(5) 	where the period is extended under Article 75, Paragraph 8;

	(6)	where the request for imposition of the countervailing duty is withdrawn under Article 76, thereby suspending the determination to initiate or terminating the investigation;

	(7)	where the application period of the provisional measure is extended under Article 80, Paragraph 2 or 3;  and

	(8)	where the Minister of Finance and Economy proposes undertakings under Article 81, Paragraph 3.

3.	When there is a written request made by the interested parties with regard to the investigation prescribed in Article 75, in the course of the investigation, the Minister of Finance and Economy or the Trade Commission shall notify them of the details of the investigation in progress.

ENFORCEMENT REGULATION OF THE CUSTOMS ACT
(Ordinance of the Minister of Finance and Economy)

Article 21 (Scope of Subsidies, etc.)

1.	The term "subsidies or bounties as prescribed by the Minister of Finance and Economy" in the proviso of Article 72, Paragraph 1 of the Decree means subsidies or bounties (hereinafter referred to as “subsidies, etc.”) with regard to research, regional development, and environment as recognized in the international agreement even though they have specificity as prescribed in Article 72, Paragraph 2 of the Decree.

2.	It is deemed that there exists specificity as prescribed in Article 72, Paragraph 2 of the Decree in any of the following cases:

	(1)	where subsidies, etc., are granted to certain enterprises restrictedly;

	(2)	where subsidies, etc., are used by a limited number of enterprises;

	(3)	where subsidies, etc., are granted restrictedly to specific areas;  and

	(4)	where the criteria of specificity recognized by the international agreements are satisfied.

3.	In calculating the amount of subsidies, etc., as prescribed in Article 72, Paragraph 3 of the Decree, the following criteria shall apply:

	(1)	in the case of equity participation: amount equivalent to the difference between such equity participation and an ordinary investment

	(2)	in the case of a loan: amount equivalent to the difference between the amount paid according to the interest rate of such a loan and the amount paid according to the market interest rate

	(3)	in the case of a loan guarantee:  amount equivalent to the difference between the amount paid on such a loan and the amount payable on comparable commercial loans without such loan guarantees

	(4)	in the case of provision or purchase of goods and services: amount equivalent to the difference between such a price and market price

	(5)	amount according to a standard provided in the international agreements

Article 22 (Requests for Imposition of Countervailing Duty)

1.	The term "like product", as used in Article 73, Paragraph 2 of the Decree means a product that is identical in all respects, including physical characteristics, quality, recognition by the users, etc., (including products altered insignificantly in appearance), or in the absence of such a product, that which has the function, characteristics and constituent parts that closely resemble such an imported product.

2.	The term "a producer who is an importer of the imported product as prescribed by the Ordinance of the Minister of Finance and Economy", as used in Article 73, Paragraph 2 of the Decree, means a producer who imports the imported product, but the term excludes:

	(1)	a producer who imported the subsidized product six months prior to the date of receipt of the application as prescribed in Article 73, Paragraph 4 of the Decree;  and

	(2)	a producer whose import quantity of the subsidized product is insignificant.

3.	In determining producers who have special relationship under Article 73, Paragraph 2 of the Decree, if a producer of the like product of the imported product sells the product at a price and with conditions that are the same with, or similar to the price and conditions of the product sold by the person who does not have special relationship as prescribed in Article 23, Paragraph 1 of the Decree, such a producer may be excluded from being defined as a producer who has special relationship.

4.	The term "the person prescribed by the Ordinance of the Minister of Finance and Economy", as used in Article 73, Paragraph 3 of the Decree, means an association, union, etc., composed of domestic producers.

Article 23 (Initiation of Investigation on Import of Subsidized Products and Material Injury, etc.)

1.	In selecting the products and the government of exporting country or exporters subject to investigation, as prescribed in Sub-paragraphs (1) and (3) of Article 74, Paragraph 1 of the Decree, the sampling method that is statistically valid on the basis of available material (including the method to select the number of governments of exporting countries, exporters or products in the order of the percentage of import volume) shall be used in principle.

2.	The term "the criteria set by the Ordinance of the Minister of Finance and Economy", as used in Sub-paragraph (3) of Articles 74, Paragraphs 2 of the Decree, means the case where the amount of subsidies, etc. is no less then 1 per cent of the price of the product concerned, unless international agreements prescribe otherwise.

3.	The term "the case where the total production of domestic producers does not satisfy the criteria set by the Ordinance of the Minister of Finance and Economy”, as used in Sub-paragraph (4) of Article 74, Paragraph 2 of the Decree, means any of the following sub-paragraphs:

	(1)	where the collective production of the like product produced by domestic producers having expressed support for the request for imposition under Article 73, Paragraph 1 of the Decree is not more than 50 per cent of the total production of such products produced by the domestic producers having expressed either support or opposition;  

	(2)	where the collective production of domestic producers having expressed support for the request for imposition under Article 73, Paragraph 1 of the Decree is less than 25 per cent of the total domestic production of the like product.

Article 24 (Termination of Final Investigation for Imposition of Countervailing Duty)

	The term "the criteria set by the Ordinance of the Minister of Finance and Economy”, as used in Article 75, Paragraph 4 of the Decree, shall mean the case where the amount of subsidies, etc. is no less than 1 per cent of the price of the products concerned unless international agreements prescribed otherwise.

Article 25 (Withdrawal of the Application for Investigation on Imposition of Countervailing Duty)

1.	A person who wishes to withdraw the application for investigation under Article 76, Paragraph 1 of the Decree, shall submit an application of withdrawal stating the reasons thereof and the related materials to the Trade Commission.

2.	In cases where the application of withdrawal was made during the period of preliminary or final investigation prescribed in Article 75, Paragraph 2 or 5 of the Decree, and where the alleged reasons for withdrawal are deemed improper, the Minister of Finance and Economy or the Trade Commission may defer the determination on whether or not the investigation will be terminated by the application of withdrawal, to the time of conclusion of the preliminary or final investigation.

Article 26 (Calculation of Injuries for Imposition of Countervailing Duty)

	The term “the criteria set by the Ordinance of the Minister of Finance and Economy” in Sub-paragraph (1) of Article 77, Paragraph 3 of the Decree means the case where the amount of subsidies, etc. is no less than 1 per cent of the price of the product concerned unless the international agreements prescribe otherwise. 

Article 27 (Confidential Treatment of Materials Relating to Countervailing Duty Measures)

	Materials subject to confidential treatment under Article 78, Paragraph 2 of the Decree shall be the ones relating to any of the following matters, the disclosure of which might cause damage to the interest of the providers or the interested parties:

	(1) 	cost of production;

	(2) 	accounting materials which have not been made public;

	(3) 	name, address and trade volume of the trade partners;

	4) 	matters concerning the provider of confidential information;  and

	(5)	other materials deemed proper to be treated confidentially.

Article 28 (Public Hearing for Imposition of countervailing Duty)

	The provisions in Article 16 shall be applied with regard to the public hearing prescribed in Article 78, Paragraph 8 of the Decree.

	Article 16 (Public Hearing for Imposition of Anti-Dumping Duty)

	1.	When the Trade Commission holds a public hearing under Article 64, Paragraph 8 of the Decree, it shall notify the Minister of Finance and Economy of the schedule and results thereof.

	2.	When the Minister of Finance and Economy wants to hold a public hearing, the applicants and interested parties shall be notified individually of the time and places for it, and public notice shall be given by way of appropriate methods including publication in the official gazette, etc. at least 30 days prior to the date of the hearing. However, in cases of urgent matters and investigation schedule requirements, notice in 7 days prior to the date may be given. or the Trade Commission 

	3.	A person who wishes to participate in the public hearing shall make such an application to the Minister of Finance and Economy or the Trade Commission at least 7 days prior to the date of the hearing with information attached including evidences that show the identity of the applicant or the interested party, summary of statements to be made, related evidential materials, personal information on the representing speaker, etc.

	4.	The applicant or the interested party may make his own statement in the presence of his representative or have the representative speak on behalf of him.

	5.	The participant in the public hearing may submit to the Minister of Finance and Economy and the Trade Commission within 7 days of the hearing written materials supplementing his statement made in the hearing.

	 6.	The applicant or the interested party shall use Korean when making statement in the public hearing.

	7.	When the participating person is a foreigner, he may bring a interpreter with him. In that case, the statement made by the interpreter is deemed to be made by the foreign participant. 

Article 29 ( Calculation of the Amount of Subsidies, etc.)

1.	When imposing countervailing duty under Article 57 of the Act, the countervailing duty shall be calculated by multiplying the rate determined within the subsidy rate calculated according to the following formula by customs value. 

	Subsidy rate= amount of subsidies, etc.         100
                                    customs value 

2.	In calculating the weighted average countervailing duty rate under Article 79, Paragraph 2 of the Decree, if there are many exporters who receive subsidies, etc., the weight may differ according to the export volume of exporters. In that case, exporters whose amount of subsides, etc. is less than 1 per cent of the customs value, may be excluded from the calculation of countervailing duty rate.

3.	The Minister of Finance and Economy shall promptly conduct the investigation under the Article 75 of the Decree against the new exporters as prescribed in the provisio of Article 79, Paragraph 3 of the Decree. In this case, the investigation on material injury, etc., may be substituted by an investigation of material injury, etc., against the supplying country under Article 79, Paragraph 3 of the Decree.

Article 30 (Undertakings to Revise the Price, etc.)

1.	Where an exporter proposes undertakings to the Minister of Finance and Economy pursuant to Article 81, Paragraph 1 of the Decree, such undertakings shall include the following items:

	(1)	the intention that the exporter will increase the export price to a level which may eliminate material injury, etc.

	(2)	information on the products which are contracted or shipped prior to the acceptance of the undertaking;

	(3)	the intention that the exporter will not take any action to evade the compliance of the undertaking through a change in type, shape, name, etc., or through a sale of inferior products, etc.,

	(4)	the intention that the exporter will not in fact violate the undertaking by a sale through a third country or a third party, etc.;

	(5)	the intention that the exporter will periodically report to the Minister of Finance and Economy with regard to the sales volume and price in the exporting country and export volume and price for the exports to Korea;

	(6)	the intention that a verification of the related materials will be allowed;  and

	(7)	the intention to consult again upon a demand by the Minister of Finance and Economy in the event of other changes in the circumstances.

2.	Before accepting undertakings under Article 81, paragraph 2 of the Decree, the Minister of Finance and Economy may ask for opinions of the Trade Commission, the head of the administrative agency concerned and the interested parties.

3.	The Minister of Finance and Economy may refuse to accept an undertaking pursuant to the provisio of Article 81, Paragraph 2 of the Decree in any of the following cases:

	(1)	where a person who proposes an undertaking on behalf of a number of exporters fails to prove that an entire agreement among such exporters has been reached;

	(2)	where there exists a condition which makes an appropriate confirmation or investigation on the compliance of such undertakings difficult;  

	(3)	where there exists reasonable grounds to refuse to accept the undertaking, such as a history of violation of undertakings in the past, etc.

4.	The exporter who has received the proposal of undertakings from the Minister of Finance and Economy as prescribed in Article 81, Paragraph 3 of the Decree shall notify whether or not such a proposal is accepted, within one month.

Article 31 (Review on Countervailing Duty and Undertakings, etc)

1.	Interested parties that are entitled to propose a review under Article 84, Paragraph 1 of the Decree are as follows:

	(1)	domestic producers of the like product or their organizations;

	(2)	the government of exporting country, or exporters and importers of the product subject to countervailing duty measures or their organizations;  and

	(3)	other persons who the Minister of Finance and Economy recognizes as having an interest.

2.	The term "the matters prescribed by the Ordinance of the Minister of Finance and Economy”, as used in Article 84, Paragraph 9 of the Decree, means any of the following sub-paragraphs:

	(1)	record on import of products subject to countervailing duty measure and  collection of countervailing duty

	(2)	compliance of undertakings by those who made such undertakings 

	(3)	other matters required in reviewing on countervailing duty measures.

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