Provisional Rules of Ministry of Foreign Trade and Economic Cooperation on
Initiation of Antidumping Investigations
Chapter 1   General Provisions
Article 1   With a view to regulating the procedure of application and initiation of an antidumping investigation, these Rules are formulated in accordance with provisions of the “Anti-dumping Regulation of the People’s Republic of China”. 

Article 2   The Ministry of Foreign Trade and Economic Co-operation (hereinafter referred to as MOFTEC) delegates the Bureau of Fair Trade for Imports and Exports to be responsible for implementation of these Rules.

Article 3   MOFTEC may initiate an anti-dumping investigation upon an application filed by the applicant or may also initiate such an investigation on its own initiative.

Chapter 2   Standings of Applicant
Article 4   Domestic industry or natural person, legal person or relevant organizations representing the domestic industry (hereinafter referred to as “the applicant”) may file an application for an anti-dumping investigation.

Article 5   Domestic industry refers to the domestic producers as whole of the like product in the People’s Republic of China, or to those producers whose collective output of the products constitutes more than 50 per cent of the total domestic production of the like product.

Article 6   Where the collective output of the applicants accounts for less than 50 per cent of the total domestic production of the like product, the application shall be regarded as being made on behalf of the domestic industry if it is supported by those domestic producers whose collective output constitutes more than 50 per cent of the total production made by that portion of the domestic industry expressing either support or opposition to the application, and if the production of the domestic producers expressing support to the application accounts  for no less than 25 per cent of the total production of the like product.

The production of the applicant shall be counted while the output of the production of the domestic producers supporting the application provided for in Paragraph 1 of this Article is to be established.

Article 7   In case the domestic industry is fragmented and involving a large number of producers, MOFTEC may examine the standing of the applicant by using statistically valid sampling method. 

Article 8   Where domestic producers are related to the exporters or importers or are themselves importers of the allegedly dumped import, they may be excluded from the domestic industry.

Article 9   The producers located in a certain area of the domestic market may be regarded as a separate industry if they sell all or almost all of their production of the like product in that market, and the demand for the like product in that market is not to any substantial degree supplied by the producers located elsewhere in China.

Chapter 3   Application
Article 10   An application for an anti-dumping investigation shall be filed in a written form. The application shall contain a formal request to the MOFTEC expressing applicant’s intent to initiate an anti-dumping investigation, and shall be sealed or signed by the applicant or its legally authorized person.

Article 11   The application for an anti-dumping investigation shall contain the following information together with relevant supporting materials:

Identity of the applicant;
Known producers, exporters and importers of the allegedly dumped import;
Complete description of the allegedly dumped import, the domestic like product and comparison between them;
Dumping and dumping margin;
Injury suffered by the domestic industry;
Causal link between dumping and injury;
Other information the applicant considers necessary to address in the application.
Article 12   The description of the identity of the applicant shall contain the following supporting materials:

Applicant’s name, legal representative, address, telephone number, facsimile number, post code, contact person, etc.;
Where an attorney at law is appointed by the applicant, the attorney’s name, his/her identity and other information shall be specified and the Power of Attorney be provided;
Volume of the production of the like product produced by the applicant in the last three years prior to the submission of the application and its proportion it accounts for in the total volume of the domestic production of the like product;
List of all known domestic producers of the like product; if the domestic producers of the like product have organized an association or a chamber of commerce, the relevant information concerning that association or chamber of commerce, such as the name, address, telephone number, facsimile number, postcode and contact person, etc;
Article 13   With regard to the known producers, exporters and importers of the alleged dumped import, the applicant shall provide the following supporting materials: 

General description of the allegedly dumped import;
Information concerning the known producers, exporters, and importers of the allegedly dumped import, such as their names, legal representatives, addresses, telephone numbers, facsimile numbers, post codes and contact persons, etc. 
Article 14   With respect to the description of the allegedly dumped import, th e domestic like product and the comparison between, the applicant shall provide the following supporting materials:

Full description of the allegedly dumped import, including product name, types, specification, usage and market situation, and the Customs Code of the People’s Republic of China, etc.;
Countries (regions) of origin or the exporting countries (regions) of the allegedly dumped import;
Full description of the domestic like product, including the product name, types, specification, usage and market situation, etc.;
Comparison on similarities and differences between the allegedly dumped import and the domestic like product, including physical characteristics,  chemical property, production and processing technology, substitutability, price and usage, etc. 
Article 15   With regard to the export price, the applicant shall provide the price of the allegedly dumped import actually paid or payable during a period of 12 months prior to the submission of the application. 

The supporting documents mentioned above may be provided by the way of actual transaction price, price quotation, price list, the Customs statistics, and the statistic data from authoritative institutions or magazines, etc. 

Article 16   With regard to the normal value, the applicant shall provide the comparable price in the ordinary course of trade of the like product for consumption in the exporting countries (regions) or countries (regions) of origin; where there is no comparable price or such price can not be obtained, the applicant shall provide the constructed value of the allegedly dumped import or the price for export to a third country.

The supporting documents provided by the applicant for the constructed value of the allegedly dumped import shall include evidence of cost of production and reasonable expenses for the product in question. When the actual constructed value cannot be obtained, the applicant may calculate it on the basis of its own factors of production, the prevailing prices of these factors in the exporting countries (regions) or in the international market.

The supporting documents mentioned above may be provided by the way of actual transaction price, price list or the statistic data from the authoritative institutions or magazines, etc. 

Article 17   With regard to the price adjustments and price comparison, the applicant shall make an appropriate adjustment for the differences between normal value and export price with respect to the sales conditions, terms, taxes, level of trade, quantities and physical characteristics, etc. The comparison between the normal value and the export price shall be made at as nearly as possible the same level of trade, the same time and at the ex-factory level.

Article 18   The applicant shall make a preliminary estimation of dumping margin, which shall be obtained by using the methodology of the adjusted weighted average normal value minus the adjusted weighted average export price, divided by the weighted average CIF export price.

The applicant shall provide an explanation if other calculation methodologies are applied.

Article 19   The assessment of injury caused to the domestic industry includes, inter alia,  the types of the injury (material injury, threat of material injury or material retardation of the establishment of a domestic industry), changes of import volume and price of the allegedly dumped import, its effect on price of the domestic like product, and its impact on the relevant economic factors and indices having a bearing on the state of the domestic industry.

Article 20   Where the application is filed on the basis of material injury caused to the domestic industry, the applicant shall provide the following evidence:

Increase of import of the allegedly dumped product either in absolute volume or relative to production or consumption of the domestic like product, the import volume and changes in the last 3 years prior to the submission of the application, the diagram of curves concerning the above-mentioned fluctuation of the quantities, etc.;
Average price of sales of the allegedly dumped import in domestic market of China and its fluctuation curves, etc. in the last 3 years prior to the submission of the application;
Impact of the price of the allegedly dumped import on the price of the domestic like product, including the price undercutting of the domestic like product, the depressing and suppressing effect on the price of the domestic like product and the impact on the price movement of the domestic product. 
Impact of the allegedly dumped import on the economic indices or factors relevant to the domestic industry, including the actual or potential decline of sales, profit, output, market shares, productivity, return on investment or utilization of capacity, the factors affecting the domestic price, the magnitude of dumping margin, cash flow, employment, wages, ability to raise capital or investment, and inventories, etc.
Where certain factors or indices mentioned above are not applicable, the applicant shall provide an explanation thereof.

Article 21   Where the application is filed on the basis of threat of material injury caused to the domestic industry, the applicant shall provide the following evidence:

Possibility of a significant increase in the allegedly dumped import entering into the domestic market at dumped prices, including the current and potential export capacity of the exporting countries (regions), the inventory level in the exporting countries (regions), etc.;
Trend of foreseeable and imminent changes of factors and indices listed in Subparagraph 4 of Article 20 of these Rules.
Article 22   Where the application is filed on the basis of material retardatio n of establishment of a domestic industry, the applicant shall provide not only the evidence listed in Articles 20 and 21 of these Rules, but also the evidence relevant to the feasibility of development of the domestic industry, including the plan of the establishment of the industry and its actual execution.

Article 23   The applicant’s allegation concerning the impact of the alleged dumped import on the domestic industry and submission of the relevant evidence shall focus on determinations in relation to the separate identification of the production of the domestic like product. If such separate identification of that production of the domestic like product is not possible, the allegation shall focus on the production of the narrowest group or range of products which include the domestic like product.

Article 24   With regard to the causal link between dumping and injury, the applicant shall provide:

Arguments to justify causal link between the allegedly dumped import and injury suffered by domestic industry;
Demonstration for the effect on injury caused to domestic industry by the quantity and price of the imported product which is not sold at dumping price, contraction in demand or changes in the patterns of consumption, trade-restrictive practice of and competition between foreign and domestic producers, development in technology, the export performance and productivity of the domestic industry, etc,.
If the applicant considers that certain factors as above-mentioned are inapplicable, the applicant shall provide an explanation.  

Article 25   The applicant shall explain the sources from which the evidence comes while providing the supporting materials specified in this Chapter.

Article 26   The applicant shall request for confidentiality treatment if the application for an anti-dumping investigation contains confidential materials; the request shall provide a meaningful non-confidential summary for those confidential materials to permit other interested parties to have a reasonable understanding about the confidential materials. The applicant shall give reasons if such non-confidential summary is impossible.

Article 27   The application for an anti-dumping investigation and supporting materials provided shall be in Chinese printing; where there is standardized terminology by the State, the standardized terms shall be used. 

If the supporting materials provided by the applicant are in foreign languages, the applicant shall provide the full text of such materials in foreign languages and the Chinese translation of the part relevant to the investigation. 

Article 28   The application for an anti-dumping investigation shall be made in both confidential version (in case where the applicant requests for confidentiality treatment) and non-confidential version.  One original and six copies shall be submitted for both confidential version and non-confidential version.  Besides one original and six copies submitted, more copies of the non-confidential version should be provided according to the number of governments of the known exporting countries (regions) of the allegedly dumped import. If there is a large number of governments of the known exporting countries (regions) of the allegedly dumped import, the number of copies may be reduced, but not to less than five.
 
Article 29   The Bureau of Fair Trade for Imports & Exports may require the applicant to provide the electronic data carrier of the application and supporting materials.

Article 30   The applicant shall submit its written application and supporting materials to the Bureau of Fair Trade for Imports & Exports by mail or direct service.

Article 31   The Bureau of Fair Trade for Imports & Exports shall sign up if the applicant formally submits the application and supporting materials.  The date of signature is the date on which the Bureau of Fair Trade for Imports & Exports receives the written application and supporting materials.

Chapter 4   Initiation
Article 32   The Bureau of Fair Trade for Imports & Exports may conduct investigation by ways of questionnaire or on-the-spot verification on the issues contained in the application and supporting materials, including the standings of the applicant, the allegedly dumped product of import, etc. 

Article 33   The Bureau of Fair Trade for Imports and Exports shall examine the application for an anti-dumping investigation submitted by the applicant and make comments thereon, and shall make a decision, within 60 days upon the receipt of the application and supporting materials, of whether to initiate the investigation after consulting with the State Economic and Trade Commission.

Article 34   The Bureau of Fair Trade for Imports and Exports shall forward one copy of the application and supporting materials to the State Economic and Trade Commission within 7 days upon the receipt of the written application and supporting materials. The State Economic and Trade Commission shall have at least 20 days to examine the application and supporting materials, and present its opinion on initiation of the anti-dumping investigation.

Article 35   The Bureau of Fair Trade for Imports and Exports may require the applicant to make amendments or to provide supplementary information to the application for anti-dumping investigation within the period specified in Article 33 of these Rules.  If the applicant does not make amendment nor provide supplementary information, or if it fails to make amendments or to provide supplementary information in conformity with the requirements for contents specified and within the time limits, MOFTEC may reject the application and notify the applicant. 

Article 36   The application, if rejected by MOFTEC, shall not be published. 

Article 37   A Public Notice shall be issued if FTEC decides to initiate an anti-dumping investigation. 

Article 38   MOFTEC shall notify the government of exporting countries (regions) before issuing the Public Notice for initiation of the investigation.
 
Article 39   The Public Notice for initiation of the investigation shall contain the following information:

Summary of the written application and the result of examination by MOFTEC;
Date of initiation of the investigation;
Product to be investigated and the name of exporting countries (regions);
Period of investigation;
Intent of the investigating authorities for on-the-spot verification;
Consequences to be borne by interested party for non-responding;
Time limits for the interested party to present comments;
Ways to contact the investigating authorities.
Article 40   Upon the issuance of the Public Notice of initiation, the Bureau of Fair Trade for Imports and Exports shall provide the non-confidential text of the application to the known exporters and the government of exporting countries (regions). If a large number of exporters are subject to the investigation, the Bureau of Fair Trade for Imports and Exports shall provide the non-confidential text of the application only to the government of the exporting countries (regions).

Article 41   The date of publication of the Public Notice for the decision to initiate an antidumping investigation is the date of initiation of investigation.

Charter 5  Supplementary Provisions
Article 42   Where MOFTEC has sufficient evidence proving the existence of dumping and injury as well as the causal link between dumping and injury, MOFTEC may, after consulting with the State Economic and Trade Commission, decide to initiate an investigation on its own initiative.

Article 43   MOFTEC shall be responsible for interpretation of these Rules.

Article 44   These Rules shall enter into force from the date of 13 March 2002.