PRELIMINARY
Short title and commencement
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*COUNTERVAILING AND ANTI-DUMPING DUTIES ACT 1993 is Malaysia Act, cited as Act 504 1993, currently marked in force and first recorded in 1993.
Opening note
Part I
Short title and commencement
This Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint.
Interpretation
in relation to subsidy means the amount of the subsidy in relation to the imports from the country under investigation is less than one per centum ad valorem; and
in relation to dumping means the margin of dumping is less than two per centum, expressed as a percentage of the export price;
“domestic industry” means—
the domestic producers whose collective output of the like product constitutes a major proportion of the total domestic production of the like product; or
where appropriate, the regional producers of the like product:
Provided that when any of the producers referred to in paragraphs
, (b) and (c) are related to the exporters or importers, or are themselves importers of the subject merchandise or, in relation to Part
II, are importers of a like product from other countries, the expression
“domestic industry” may be construed as referring to the rest of the producers referred to in paragraph (a), (b) or (c), as the case may be, other than such related producers or producers who are importers;
“dumping” means the importation of merchandise into Malaysia at less than its normal value as sold in the domestic market of the exporting country;
“dumping margin” means the amount by which the normal value of
Countervailing and Anti-Dumping Duties 9
a merchandise exceeds the export price;
“export price” means the export price of a merchandise as determined in accordance with section 17;
“exporting country” means—
in cases where the subject merchandise is not exported directly to Malaysia but is transhipped through an intermediate country—
where the subject merchandise is not substantially transformed in the intermediate country, the country of origin of the subject merchandise;
where the subject merchandise is substantially transformed in the intermediate country, the intermediate country;
“General Agreement on Tariffs and Trade 1994” means the General
Agreement on Tariffs and Trade 1994 set out in Annex 1A to the
World Trade Organization Agreement;
“Government” means the Government of Malaysia;
“injury” means material injury or threat of material injury to the domestic industry or material retardation of the establishment of such an industry;
“interested party” means—
a trade or business association of which a majority of its members are producers, exporters or importers of the subject merchandise;
10 Laws of Malaysia ACT 504
the government of a country in which the subject merchandise is produced or from which it is exported;
a trade or business association of which a majority of its members produce a like product in Malaysia; or
any other party as the Government considers appropriate;
“like product” means a product that is identical or alike in all respects to the subject merchandise or, in the absence of such a product, another product that although not alike in all respects has characteristics closely resembling the subject merchandise;
“Member” means a Member to the World Trade Organization
Agreement;
“Minister” means the Minister responsible for international trade and industry;
“negligible”—
in relation to a countervailing duty action, in the case of a developing country Member, means the volume of imports of the subject merchandise, actual or potential, from a particular developing country Member into Malaysia accounts for less than four per centum of the total imports of the like product unless developing country Members that individually account for less than four per centum of the imports of the like product into Malaysia collectively account for more than nine per centum of the total imports of the like product into Malaysia; and
in relation to an anti-dumping duty action means the volume of imports of the subject merchandise, actual or potential, from a particular country into Malaysia accounts for less than three per centum of the total imports of the like product unless countries that individually account for
Countervailing and Anti-Dumping Duties 11
less than three per centum of the imports of the like product into Malaysia collectively account for more than seven per centum of the total imports of the like product into Malaysia;
“non-market economy country” means any foreign country that the
Government determines operates on a centrally-planned economy and not on market principles of cost or pricing structures or free enterprise economy;
“normal value” means the normal value of a merchandise as determined in accordance with section 16 or 19;
“officer of customs” has the same meaning as is assigned to that expression under section 2 of the Customs Act 1967 [Act 235];
“prescribed” means prescribed by the regulations;
“producer” means a producer, manufacturer or processor;
“provisional measures” means—
in relation to Part II, the requirement to post a security equal to the estimated subsidy found in the preliminary determination; and
in relation to Part III, the requirement to post a security equal to the estimated dumping margin found in the preliminary determination;
“regional producers” means the domestic producers of the like product located in a specific regional market within Malaysia where in exceptional circumstances there are two or more competitive markets within Malaysia for the production in question and in such case, the producers of the like product within each market may be regarded as a separate industry if—
the producers within each market sell all or almost all of
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their production of the merchandise in question within that market; and
the demand in each market is not to any substantial degree supplied by producers of the merchandise in question located elsewhere in Malaysia;
“subject merchandise” means the class or kind of merchandise imported or sold for importation into Malaysia that is the subject of any countervailing or anti-dumping duty action under this Act, as determined by the Government to be appropriate for establishing the scope of the action;
“undertakings” means undertakings as may be prescribed under section 50;
“World Trade Organization” means the World Trade Organization established by the World Trade Organization Agreement;
“World Trade Organization Agreement” means the Marrakesh
Agreement Establishing the World Trade Organization done at
Marrakesh on 15 April 1994.
Notwithstanding any other provisions of this Act, the Minister may regard such activities as are recognized under Malaysia’s international obligations to be activities which shall or shall not be subject to action under this Act.
Parties shall be deemed to be related if—
both of them are directly or indirectly controlled by a third party; or
Countervailing and Anti-Dumping Duties 13
together they directly or indirectly control a third party:
Provided that there are grounds for believing or suspecting that the effect of the relationship is such as to cause the party concerned to behave differently from non-related parties.
One party shall be deemed to control another when the firstmentioned party is legally or operationally in a position to exercise restraint or direction over the latter.
PART IA
SUBSIDIES
Subsidy
For the purposes of this Act, “subsidy”, in relation to merchandise that is imported into Malaysia, means—
a financial contribution by a government or a public body, or by a private body entrusted or directed by the government or public body to carry out a governmental function, that is made in connection with the production, manufacture or export of the merchandise and that involves one or more of the following:
a direct transfer of funds from the government or public body or private body to the enterprise by whom the merchandise is produced, manufactured or exported (after this referred to as “the enterprise”);
a potential direct transfer of funds from the government or public body or private body to the enterprise contingent on the occurrence of particular circumstances;
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the acceptance of liabilities, actual or potential, of the enterprise by the government or public body or private body;
the forgoing, or non-collection, of revenue (other than an allowable exemption or remission) due to the government or public body or private body from the enterprise;
the provision by the government or public body or private body of goods or services to the enterprise other than general infrastructure;
the purchase by the government or public body or private body of goods provided by the enterprise;
the making of payments to a funding mechanism by the government or public body; or
any form of income or price support as specified in Article
XVI of the General Agreement on Tariffs and Trade 1994
that is received from a government or public body, if that financial contribution or income or price support confers a benefit in relation to the merchandise.
Prohibited subsidy
The following subsidies shall be prohibited:
subsidies contingent, in law or in fact, whether solely or as one of several other conditions, upon export performance, including those as may be prescribed; and
subsidies contingent, whether solely or as one of several other conditions, upon the use of domestic over imported merchandise.
Countervailing and Anti-Dumping Duties 15
Actionable subsidy
A subsidy that causes the following adverse effects to the domestic interest shall be subject to countervailing measures under this Act:
nullification or impairment of benefits accruing directly or indirectly under the General Agreement on Tariffs and
Trade 1994, in particular the benefits of concessions bound under Article II of the General Agreement on
Tariffs and Trade 1994; or
serious prejudice to domestic interests:
Provided that this section shall not apply to subsidies maintained on agricultural products as provided in Article 13 of the Agreement on
Agriculture set out in Annex 1A to the World Trade Organization
Agreement.
Non-actionable subsidy
The following subsidies shall be regarded as non-actionable subsidies and shall not be subject to countervailing duties under this
Act:
subsidies that are specific within the meaning of subsection 3(2) but meet all the prescribed conditions.
Calculation of subsidy
Subsidy shall be calculated in the prescribed manner.
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Part II
Imposition of countervailing duties
A subsidy as specified in section 2A shall be subject to countervailing duties as provided under this Act only if the subsidy is specific, as may be prescribed, and is not a non-actionable subsidy.
The amount of the countervailing duty to be imposed shall be calculated in accordance with the method as may be prescribed.
Initiation of investigation
A petition under subsection (1) shall contain such information as may be prescribed and shall include sufficient evidence of the existence of a subsidy and injury and a causal link between the imports of the subject merchandise and the alleged injury.
The Government shall, within the prescribed period, examine the petition and other available information and evidence to determine whether—
there is a sufficient degree of support for or opposition to
Countervailing and Anti-Dumping Duties 17
the petition expressed by the domestic industry; and
A petition under subsection (1) shall be immediately rejected if the Government is satisfied that—
there is no sufficient evidence of either subsidization or of injury to justify the initiation of a countervailing duty investigation, such as but not limited to cases where the amount of a subsidy is de minimis or where the volume of imports of the subject merchandise, actual or potential, or the injury, is negligible; or
Where the Government rejects a petition under subsection (4), the Government shall, as soon as practicable, notify the petitioner in writing of its determination not to initiate an investigation.
Notwithstanding subsection (1) the Government may, in special circumstances, initiate a countervailing duty investigation on its own accord without having received a written petition by or on behalf of the domestic industry for the initiation of such investigation if it has sufficient evidence of each of the matters specified in subsection (2).
Where the Government decides to initiate an investigation under subsection (1) or (6), it shall notify the appropriate interested parties and publish a notice of initiation of investigation.
Evidence of both subsidy and injury shall be considered simultaneously in the decision whether to initiate an investigation and after that during the course of the investigation, starting on a date not later than the earliest date the provisional measures may be applied.
The Government shall not disclose any petition made under this section unless the Government has made a decision to initiate an investigation.
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Consultations with interested foreign governments
The Government shall provide a reasonable opportunity for further consultations throughout the investigation.
No affirmative determination whether preliminary or final shall be made without reasonable opportunity for consultations having been given.
The consultations referred to in subsection (1) may establish the basis for proceeding under section 4.
The Government shall also permit, upon request, the Members the merchandise of which are subject to investigation access to non-confidential evidence, including the non-confidential summary of confidential information, being used for initiating or conducting the investigation.
Amendments to the petition
A petition requesting a countervailing duty investigation be initiated may be amended subject to such conditions as the
Government deems fit.
Duration of investigation
Government shall conclude a countervailing duty investigation within such period as may be prescribed.
Countervailing and Anti-Dumping Duties 19
Injury and causal link
For the purposes of this Act, it shall be demonstrated that the subject merchandise is, through the effects of subsidies, causing injury.
The demonstration of a causal relationship between the subject merchandise and the injury to the domestic industry shall be based on an examination of all relevant evidence available to the Government.
The Government shall also examine any known factors other than the subject merchandise that at the same time are injuring the domestic industry and the injuries caused by these other factors shall not be attributed to the subject merchandise.
A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility.
In making a determination regarding the existence of a threat of material injury, the Government shall consider such factors as may be prescribed.
In cases where injury is threatened by the subject merchandise, the application of countervailing measures shall be considered and decided with special care.
Preliminary determination of subsidy and injury
whether a subsidy is being provided with respect to the subject merchandise and the amount of such subsidy; and
the subject merchandise, through the effects of the subsidy, is causing material injury to the domestic industry in Malaysia producing the like product;
the subject merchandise, through the effects of the subsidy, is threatening to cause material injury to the domestic industry in Malaysia producing the like product; or
the subject merchandise, through the effects of the subsidy, is causing material retardation of the establishment of such an industry in Malaysia.
If the Government makes a negative preliminary determination with regard to subsection (1), it shall publish a notice stating the reasons for the negative determination and—
If the
Government makes an affirmative preliminary determination with regard to subsection (1), it shall continue the investigation and publish a notice of—
the affirmative preliminary determination, stating the reasons for its determination with respect to paragraphs (1)(a) and (b);
and
the provisional measures applicable.
Countervailing and Anti-Dumping Duties 21
Provisional measures
Provisional measures shall take the form of provisional countervailing duties guaranteed by a security equal to the amount of the estimated subsidy determined under subsection 8(1).
The provisional measures imposed under this section shall not exceed such period as may be prescribed.
Final determination of subsidy and injury
whether a subsidy is being provided with respect to the subject merchandise and the amount of such subsidy; and
the subject merchandise, through the effects of the subsidy, is causing material injury to the domestic industry in Malaysia producing the like product;
the subject merchandise, through the effects of the subsidy, is threatening to cause material injury to the domestic industry in Malaysia producing the like product; or
the subject merchandise, through the effects of the
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subsidy, is causing material retardation of the establishment of such an industry in Malaysia.
The Government shall, before making a final determination, inform all interested Members and interested parties of the essential facts under consideration that form the basis for the decision whether to apply definitive measures.
A disclosure under subsection (2) shall be made in sufficient time for all interested Members and interested parties to defend their interests.
Where the Government makes a negative final determination with regard to subsection (1), it shall—
terminate the provisional measures applied under section 9
and release the security required by such measures; and
publish a notice of the negative final determination, stating the reasons for its negative determination.
Where the
Government makes an affirmative final determination with regard to subsection (1), it shall—
publish a notice of affirmative final determination stating the reasons for its affirmative determination, the countervailing duties applicable and the subject merchandise on which the countervailing duties apply;
impose countervailing duties in the amounts determined in accordance with subsection 3(3)
on the subject merchandise imported into Malaysia on or after the date of publication of the final determination; and
impose countervailing duties in accordance with subsections (5) and (6) on imports into Malaysia for which
Countervailing and Anti-Dumping Duties 23
provisional measures were applied.
Where an affirmative final determination has been made, the
Government may take into consideration public interest in determining whether to impose countervailing duties and the amount of such duties.
The Government shall impose countervailing duties on the subject merchandise against which provisional measures were applied where—
the Government makes a determination of material injury under subparagraph (1)(b)(i); or
the Government makes a determination of threat of material injury under subparagraph (1)(b)(ii), it finds that the subject merchandise, in the absence of the provisional measures, would have led to a finding of material injury under subparagraph (1)(b)(i).
Notwithstanding subsection (5), where a determination of threat of injury or material retardation is made but no injury has occurred, a definitive countervailing duty may be imposed only from the date of the determination of the existence of a threat of injury or material retardation, and any security submitted during the period of the application of provisional measures shall be released immediately.
With respect to the imposition of countervailing duties under subsection (5)—
where the countervailing duty is higher than the amount guaranteed by the security required under the provisional measures, only the amount equal to the security shall be imposed; and
where the countervailing duty is less than the amount guaranteed by the security required under the provisional measures, the full amount of the countervailing duty shall
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be imposed and the excess amount of the security shall be reimbursed or released.
Notwithstanding subsections (4) and (5), the Government may impose countervailing duties on the subject merchandise imported into Malaysia within a period of ninety days prior to the application of provisional measures if—
such injury is being caused by massive imports of the subject merchandise in a short period of time; and
export subsidies are being provided with respect to the subject merchandise contrary to the interested foreign government’s international obligations.
No countervailing duties shall be imposed retroactively under subsection (7) on merchandise entered for consumption before the date of initiation of the investigation.
When a countervailing duty is imposed on the subject merchandise, such countervailing duty shall be imposed in the appropriate amount in each case on a non-discriminatory basis on all imports of such merchandise into Malaysia from the country found to be subsidizing the subject merchandise causing injury.
Provisional measures and definitive countervailing duties shall only be applied to subject merchandise that enters for consumption after the time when the decision under subsection 9(1) or 10(4), as the case may be, enters into force.
Termination of investigation
the petitioner withdraws the petition;
Countervailing and Anti-Dumping Duties 25
the Government is satisfied that there is no sufficient evidence of subsidization or injury to justify proceeding with the investigation;
the amount of subsidy is de minimis or the volume of imports of the subject merchandise, actual or potential, or the injury, is negligible; or
the Government determines that termination of the investigation is in the public interest.
If a termination pursuant to subsection (1) occurs prior to the preliminary determination, the Government shall publish a notice of such termination stating the reasons for the termination.
If a termination pursuant to subsection (1) occurs after the preliminary determination, the Government shall—
terminate any provisional measures referred to in section 9
and release the security required by such measures; and
publish a notice of such termination, stating the reasons for the termination.
Suspension of investigation
Before accepting the undertakings, the Government shall determine that—
will eliminate the subsidy or the injurious effects caused by the subject merchandise; and
Undertakings shall not be sought or accepted unless the
Government has made a preliminary affirmative determination of subsidization and injury caused by such subsidization and, in the case of undertakings from exporters, has obtained the consent of the exporting Member.
If the undertakings are accepted by the Government after the preliminary determination, the Government shall—
suspend any provisional measures applied under section 9
and release all or part of the security required by such measures as the Government deems appropriate; and
publish a notice stating the reasons for the suspension of the investigation and actions under paragraph (b).
Notwithstanding the acceptance of the undertakings, the investigation shall be completed upon the written request of the interested foreign government or if the Government so decides.
Where the Government completes the investigation pursuant to subsection (5) and makes an affirmative determination, the undertakings shall remain in effect consistent with the provisions of this Act.
Where the Government completes the investigation pursuant to subsection (5) and makes a negative determination, the undertakings shall lapse, except where the negative determination is due in large part to the existence of the undertakings.
Where the negative determination referred to in subsection (7) is due in large part to the existence of the undertakings, the undertakings may be maintained for a reasonable period consistent with the provisions of this Act.
Countervailing and Anti-Dumping Duties 27
The Government may suggest for price undertakings to be provided by exporting Members or exporters, but no exporter shall be obliged to enter into such undertakings.
The fact that the exporting Members or exporters do not offer price undertakings, or do not accept an invitation to do so, shall in no way affect the consideration of the case.
Notwithstanding subsections (8A) and (8B), the Government shall be free to determine that a threat of injury is more likely to be realized if the importation of the subject merchandise continues.
The Government may require any exporting Member or exporter from whom an undertaking has been accepted to provide, periodically, information relevant to the fulfilment of such undertaking and to permit verification of pertinent information.
Non-compliance with subsection (8D) shall be construed as a breach of the undertaking.
The Government may resume a suspended investigation at any time if it determines that the undertakings accepted under subsection (1)
no longer meet the requirements of subsection (2) or there is a material violation of the undertakings.
If the Government resumes an investigation pursuant to subsection (9), it shall take expeditious action to—
The Government may use the facts available with respect to any determination under subsection (10) where a material violation of the undertakings occur.
28 Laws of Malaysia ACT 504
In the cases mentioned in subsection (9), the Government may impose countervailing duties in conformity with section 10 on the subject merchandise imported into Malaysia within a period of ninety days prior to the provisional measures applied under subsection (10):
Provided that such retroactive assessment shall not be applied to subject merchandise imported prior to the violation.
Duration of duty
A countervailing duty imposed under this Act shall remain in force only for as long as and to the extent necessary to counteract the subsidization that is causing the injury.
Administrative review
a countervailing duty or undertaking which is required to be terminated pursuant to subsection (6) should be maintained; or
an administrative review is in the public interest, the Government may conduct an administrative review:
Provided that no administrative review shall be undertaken unless the period prescribed has lapsed.
Countervailing and Anti-Dumping Duties 29
If the Government decides to conduct an administrative review under subsection (1), the Government shall—
conduct such review, allowing appropriate interested parties an opportunity to provide comments.
Any administrative review conducted pursuant to subsection (2)
shall be completed within such period as may be prescribed.
On the completion of the administrative review, the
Government shall publish a final administrative review determination stating the reasons for its determination.
Any determination made pursuant to subsection (4) shall apply to the subject merchandise imported on or after the date of publication of the administrative review determination.
No countervailing duty shall be collected on imports made after five years from the date of its imposition, or five years from the date of the conclusion of the most recent administrative review under subsection (1) that covered both subsidy and injury, and undertakings shall automatically lapse with respect to imports made after five years from the date of publication of the notice of suspension of the investigation, unless the Government determines, in an administrative review initiated before that date on the Government’s own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time before that date, that the expiry of the duty or undertaking would be likely to lead to a continuation or recurrence of subsidization and injury.
A countervailing duty duly imposed under this Act may remain in force pending the outcome of an administrative review under this section.
An interested party who submits relevant information substantiating the need for an administrative review shall have the right to request for an administrative review by the Government to
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determine one or more of the following:
whether the continued imposition of the countervailing duty is necessary to offset subsidization;
whether the injury would be likely to continue to recur if the duty were removed or varied:
Provided that the period specified in subsection (6) has lapsed since the imposition of the definitive countervailing duty.
Refund review
Government, or the Government otherwise obtains information, that—
A request for a refund review shall be submitted in writing to the Government and shall contain—
a list of all entries of the subject merchandise into
Malaysia for which the refund review is requested; and
all relevant evidence to show that the importer is entitled to a refund on each such entry.
Where, on the completion of a refund review under this section, the Government determines that—
the countervailing duty that was imposed is higher than the countervailing duty that should have been imposed in
Countervailing and Anti-Dumping Duties 31
the circumstances, the Government shall refund such amount of the countervailing duty collected as it deems fit.
A refund under subsection (3) shall, as far as practicable, be made within ninety days from the date of the determination of the refund review.
A finding in the refund review that no countervailing duty should have been imposed shall not by itself require the Government to terminate the definitive countervailing duty.
Expedited review
No countervailing duty shall be imposed on imports from the exporters or producers referred to in subsection (1) while the review is being carried out.
Notwithstanding subsection (2), the Government may withhold an appraisement or request guarantees to ensure that, should a review under subsection (1) result in a determination of subsidization and injury caused thereby in respect of exports of the subject merchandise into
Malaysia by the exporters or producers referred to in subsection (1), countervailing duties may be imposed retroactively to the date of the initiation of the review.
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Developing country Member
Notwithstanding any other provisions of this Act, countervailing duty proceedings against exporters or producers from developing country Members of the World Trade Organization shall be carried out in such manner as may be prescribed.
Part III
Imposition of anti-dumping duties
The amount of anti-dumping duty to be imposed—
shall be equal to the dumping margin determined to exist with respect to the subject merchandise; or
if the Government determines that a lower anti-dumping duty will be sufficient to eliminate the injury, may be such lower duty.
Normal value
When there are no sales in the domestic market of the exporting country under subsection (1), or when such sales do not permit a proper comparison, normal value shall be determined—
by comparison with a comparable price of the like product
Countervailing and Anti-Dumping Duties 33
when exported to an appropriate third country provided that the comparable price is representative; or
by constructing the value of the subject merchandise by adding cost of production in the country of origin plus a reasonable amount for selling, administrative and other general expenses and for profits.
If there are reasonable grounds for believing or suspecting that a sale of the like product under subsection (1) or paragraph (2)(a) is at a price below unit production costs (fixed and variable) plus selling, administrative and other general expenses, the sale may be treated as not having been made in the ordinary course of trade by reason of price and may be disregarded in determining normal value only if the
Government determines that such sale was made within an extended period of time in substantial quantities and is at a price that does not provide for the recovery of all costs within a reasonable period of time.
If the price of a sale referred to in subsection (3) is above the weighted average per unit cost for the period of investigation, such price shall be considered to provide for the recovery of costs within a reasonable period of time.
For the purpose of this section, the amount for selling, administrative and other general expenses and for profits shall be based on actual information pertaining to production and sales in the ordinary course of trade of the like product by the exporter or producer under investigation.
If the amount referred to in subsection (5) cannot be determined on the basis specified in that subsection, the amount may be determined on any of the following basis:
the weighted average of the actual amount incurred and realized by other exporters or producers subject to investigation in respect of production and sales of the like product in the domestic market of the country of origin;
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the actual amount incurred and realized by the exporter or producer in question in respect of production and sales in the domestic market of the country of origin of the same general category of products; or
any other reasonable method, provided that the amount for profits so established shall not exceed the profit normally realized by other exporters or producers on the sale of products of the same general category in the domestic market of the country of origin.
For the purpose of this section, production costs shall be calculated on the basis of records kept by the exporter or producer under investigation, provided that such records are in accordance with the generally accepted accounting principles of the exporting country concerned and reasonably reflect the costs associated with the production and sale of the subject merchandise.
The Government shall consider all available evidence on the proper allocation of costs, including any evidence that is made available by the exporter or producer in the course of the investigation, provided that it is shown that such allocations have historically been utilized by the exporter or producer, in particular in relation to establishing appropriate amortization and depreciation periods and allowances for capital expenditures and other development costs.
Export price
In cases where there is no export price or where it appears that the export price is unreliable because the exporter and the importer or a third party are related, or that there is a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the subject
Countervailing and Anti-Dumping Duties 35
merchandise is first resold to an independent buyer, or if the subject merchandise is not resold to an independent buyer, or not resold in the condition imported, on any reasonable basis.
If the export price is constructed as described in subsection (2), allowance shall be made for all costs incurred between importation and resale.
Comparison of normal value and export price
The comparison shall be made at the same level of trade, normally at ex-factory level, and in respect of sales made at as nearly as possible the same time and due account shall be taken of other differences that affect price comparability.
Where the normal value and the export price as established are not on a comparable basis, due allowance, in the form of adjustments, shall be made in each case, on its merits, for differences in factors that are claimed, and demonstrated, to affect prices and price comparability.
If the determination of the export price under subsection 17(2)
affects price comparability, the Government shall establish the normal value at a level of trade equivalent to the level of trade of the constructed export price, or shall make due allowance as provided under this section.
In a case where the subject merchandise is not imported directly from the country of origin but is exported from an intermediate country, the price at which the subject merchandise is sold from the exporting country to Malaysia shall be compared with the comparable price in the exporting country.
Notwithstanding subsection (5), comparison may be made with
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the price in the country of origin if—
there is no comparable price for the subject merchandise in the exporting country.
Where an exporter or importer claims for an adjustment under subsection (3), it shall prove that its claim is justified.
The Government shall indicate to the parties in question the information that is necessary to ensure a fair comparison.
Subject merchandise from a non-market economy country
Where the country of origin of the subject merchandise is a non-market economy country, the normal value shall be determined in the prescribed manner.
Initiation of investigation
A petition under subsection (1) shall contain such information as may be prescribed and shall include sufficient evidence of the dumping and injury and a causal link between the imports of the subject merchandise and the alleged injury.
After receipt of a petition under subsection (1) but before proceeding under subsection (4), the Government shall notify the
Countervailing and Anti-Dumping Duties 37
government of the exporting country of the receipt of the petition.
The Government shall, within the prescribed period, examine the petition and other available information and evidence to determine whether—
there is a sufficient degree of support for or opposition to the petition expressed by the domestic industry; and
A petition under subsection (1) shall be immediately rejected if the Government is satisfied that—
there is no sufficient evidence of either dumping or of injury to justify the initiation of an anti-dumping duty investigation, such as but not limited to cases where the dumping margin is de minimis or where the volume of imports of the subject merchandise, actual or potential, or the injury, is negligible; or
Where the Government rejects a petition under subsection (5), the Government shall, as soon as practicable, notify the petitioner in writing of its determination not to initiate an investigation.
Notwithstanding subsection (1) the Government may, in special circumstances, initiate an anti-dumping duty investigation on its own accord without having received a written petition by or on behalf of the domestic industry for the initiation of such investigation if it has sufficient evidence of each of the matters specified in subsection (2).
Where the Government decides to initiate an investigation under subsection (1) or subsection (7), it shall notify the appropriate interested parties and publish a notice of initiation of investigation.
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Evidence of both dumping and injury shall be considered simultaneously in the decision whether to initiate an investigation and after that during the course of the investigation, starting on a date not later than the earliest date the provisional measures may be applied.
The Government shall not disclose any petition made under this section unless the Government has made a decision to initiate an investigation.
Amendments to the petition
A petition requesting an anti-dumping duty investigation be initiated may be amended subject to such conditions as the
Government deems fit.
Duration of investigation
The Government shall conclude an anti-dumping duty investigation within such period as may be prescribed.
Injury and causal link
For the purposes of this Act, it shall be demonstrated that the subject merchandise is, through the effects of dumping, causing injury.
The demonstration of a causal relationship between the subject merchandise and the injury to the domestic industry shall be based on
Countervailing and Anti-Dumping Duties 39
an examination of all relevant evidence available to the Government.
The Government shall also examine any known factors other than the subject merchandise that at the same time are injuring the domestic industry and the injuries caused by these other factors shall not be attributed to the subject merchandise.
A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility.
In making a determination regarding the existence of a threat of material injury, the Government shall consider such factors as may be prescribed.
In cases where injury is threatened by the subject merchandise, the application of anti-dumping measures shall be considered and decided with special care.
Preliminary determination of dumping and injury
whether a dumping margin exists with respect to the subject merchandise and the margin of such dumping; and
the subject merchandise, through the effects of dumping, is causing material injury to the domestic industry in Malaysia producing the like product;
the subject merchandise, through the effects of dumping, is threatening to cause material injury to the domestic industry in Malaysia producing the like product; or
40 Laws of Malaysia ACT 504
the subject merchandise, through the effects of dumping, is causing material retardation of the establishment of such an industry in Malaysia.
If the Government makes a negative preliminary determination with regard to subsection (1), it shall publish a notice stating the reasons for the negative determination and—
If the Government makes an affirmative preliminary determination with regard to subsection (1), it shall continue the investigation and publish a notice of—
the affirmative preliminary determination, stating the reasons for its determination with respect to paragraphs (1)(a) and (b);
and
Provisional measures shall take the form of provisional anti-dumping duties guaranteed by a security equal to the amount of estimated dumping margin determined under subsection 23(1).
The provisional measures imposed under this section shall not exceed such period as may be prescribed.
Countervailing and Anti-Dumping Duties 41
Final determination of dumping and injury
whether a dumping margin exists with regard to the subject merchandise and the margin of such dumping; and
the subject merchandise, through the effects of dumping, is causing material injury to the domestic industry in Malaysia producing the like product;
the subject merchandise, through the effects of dumping, is threatening to cause material injury to the domestic industry in Malaysia producing the like product; or
the subject merchandise, through the effects of dumping, is causing material retardation of the establishment of such an industry in Malaysia.
The Government shall, before making a final determination, inform all interested parties of the essential facts under consideration that form the basis for the decision whether to apply definitive measures.
A disclosure under subsection (2) shall be made in sufficient time for all interested parties to defend their interests.
Where the Government makes a negative final determination with regard to subsection (1), it shall—
terminate the provisional measures applied under section 24, and release the security required by such measures; and
publish a notice of the negative final determination, stating
42 Laws of Malaysia ACT 504
the reasons for its negative determination.
Where the
Government makes an affirmative final determination with regard to subsection (1), it shall—
publish a notice of affirmative final determination stating the reasons for its affirmative determination, the anti-dumping duties applicable and the subject merchandise on which the anti-dumping duties apply;
impose anti-dumping duties in the amounts determined in accordance with subsection 15(2) on the subject merchandise imported into Malaysia on or after the date of publication of the final determination; and
impose anti-dumping duties in accordance with subsections (5) and (6) on imports into Malaysia for which provisional measures were applied.
Where an affirmative final determination has been made, the
Government may take into consideration public interest in determining whether to impose anti-dumping duties and the amount of such duties.
The Government shall impose anti-dumping duties on the subject merchandise against which provisional measures were applied where—
the Government makes a determination of material injury under subparagraph (1)(b)(i); or
the Government makes a determination of threat of material injury under subparagraph (1)(b)(ii), it finds that the subject merchandise, in the absence of the provisional measures, would have led to a finding of material injury under subparagraph (1)(b)(i).
Notwithstanding subsection (5), where a determination of threat of injury or material retardation is made but no injury has occurred, a definitive anti-dumping duty may be imposed only from
Countervailing and Anti-Dumping Duties 43
the date of the determination of the existence of a threat of injury or material retardation, and any security submitted during the period of the application of provisional measures shall be released immediately.
With respect to the imposition of anti-dumping duties under subsection (5)—
where the anti-dumping duty is higher than the amount guaranteed by the security required under the provisional measures, only the amount equal to the security shall be imposed; and
where the anti-dumping duty is less than the amount guaranteed by the security required under the provisional measures, the full amount of the anti-dumping duty shall be imposed and the excess amount of the security shall be reimbursed or released.
Notwithstanding subsections (4) and (5), the Government may impose anti-dumping duties on the subject merchandise imported into
Malaysia within a period of ninety days prior to the application of provisional measures if—
such injury is being caused by massive imports of the subject merchandise in a short period of time; and
there is a history of dumping which caused injury, or the importer was or should have been aware that the exporter practises dumping and that such dumping would cause injury.
No anti-dumping duties shall be imposed retroactively under subsection (7) on merchandise entered for consumption before the date of initiation of the investigation.
When an anti-dumping duty is imposed on the subject merchandise, such anti-dumping duty shall be imposed in the appropriate amount in each case on a non-discriminatory basis on all
44 Laws of Malaysia ACT 504
imports of such merchandise into Malaysia from the country found to be dumping the subject merchandise causing injury.
Provisional measures and definitive anti-dumping duties shall only be applied to subject merchandise that enters for consumption after the time when the decision under subsection 24(1) or 25(4), as the case may be, enters into force.
Termination of investigation
the Government is satisfied that there is no sufficient evidence of dumping or injury to justify proceeding with the investigation;
the dumping margin is de minimis or the volume of imports of the subject merchandise, actual or potential, or the injury, is negligible; or
the Government determines that termination of the investigation is in the public interest.
If a termination pursuant to subsection (1) occurs prior to the preliminary determination, the Government shall publish a notice of such termination stating the reasons for the termination.
If a termination pursuant to subsection (1) occurs after the preliminary determination, the Government shall—
terminate any provisional measures referred to in section 24 and release the security required by such measures; and
publish a notice of such termination, stating the reasons
Countervailing and Anti-Dumping Duties 45
for the termination.
Suspension of investigation
Before accepting the price undertakings, the Government shall determine that —
will eliminate the dumping margin or the injurious effects caused by the subject merchandise; and
Price undertakings shall not be sought or accepted from exporters unless the Government has made a preliminary affirmative determination of dumping and injury caused by such dumping.
If the price undertakings are accepted by the Government after the preliminary determination, the Government shall—
suspend any provisional measures applied under section 24
and release all or part of the security required by such measures as the Government deems appropriate; and
publish a notice stating the reasons for the suspension of the investigation and actions under paragraph (b).
Notwithstanding the acceptance of the price undertakings, the investigation shall be completed upon the written request of the exporter or if the Government so decides.
46 Laws of Malaysia ACT 504
Where the Government completes the investigation pursuant to subsection (5), and makes an affirmative determination, the price undertakings shall remain in effect consistent with the provisions of this Act.
Where the Government completes the investigation pursuant to subsection (5), and makes a negative determination, the price undertakings shall lapse, except where the negative determination is due in large part to the existence of the price undertakings.
Where the negative determination referred to in subsection (7) is due in large part to the existence of the price undertakings, the price undertakings may be maintained for a reasonable period consistent with the provisions of this Act.
The Government may suggest for price undertakings to be provided by exporters, but no exporter shall be obliged to enter into such undertakings.
The fact that the exporters do not offer price undertakings, or do not accept an invitation to do so, shall in no way affect the consideration of the case.
Notwithstanding subsections (8A) and (8B), the Government shall be free to determine that a threat of injury is more likely to be realized if the importation of the subject merchandise continues.
The Government may require any exporter from whom a price undertaking has been accepted to provide, periodically, information relevant to the fulfilment of such undertaking and to permit verification of pertinent information.
Non-compliance with subsection (8D) shall be construed as a breach of the price undertaking.
The Government may resume a suspended investigation at any time if it determines that the price undertakings accepted under subsection (1) no longer meet the requirements of subsection (2) or
Countervailing and Anti-Dumping Duties 47
there is a material violation of the price undertakings.
If the Government resumes an investigation pursuant to subsection (9), it shall take expeditious action to—
apply provisional measures in conformity with section 24, if appropriate; and
The Government may use the facts available with respect to any determination under subsection (10) where a material violation of the price undertakings occur.
In the cases mentioned in subsection (9), the Government may impose anti-dumping duties in conformity with section 25 on the subject merchandise imported into Malaysia within a period of ninety days prior to the provisional measures applied under subsection (10):
Provided that such retroactive assessment shall not be applied to subject merchandise imported prior to the violation.
Duration of duty
An anti-dumping duty imposed under this Act shall remain in force only for as long as and to the extent necessary to counteract the dumping that is causing the injury.
Administrative review
an anti-dumping duty or undertaking which is required to be terminated pursuant to subsection (6) should be maintained; or
an administrative review is in the public interest, the Government may conduct an administrative review:
Provided that no administrative review shall be undertaken unless the period prescribed has lapsed.
If the Government decides to conduct an administrative review under subsection (1), the Government shall—
conduct such review, allowing appropriate interested parties an opportunity to provide comments.
Any administrative review conducted pursuant to subsection (2)
shall be completed within such period as may be prescribed.
On the completion of the administrative review, the
Government shall publish a final administrative review determination, stating the reasons for its determination.
Any determination made pursuant to subsection (4) shall apply to the subject merchandise imported on or after the date of publication of the administrative review determination.
Countervailing and Anti-Dumping Duties 49
No anti-dumping duty shall be collected on imports made after five years from the date of its imposition, or five years from the date of the conclusion of the most recent administrative review under subsection (1) that covered both dumping and injury, and undertakings shall automatically lapse with respect to imports made after five years from the date of publication of the notice of suspension of the investigation, unless the Government determines, in an administrative review initiated before that date on the
Government’s own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time before that date, that the expiry of the duty or undertaking would be likely to lead to a continuation or recurrence of dumping and injury.
An anti-dumping duty duly imposed under this Act may remain in force pending the outcome of an administrative review under this section.
An interested party who submits relevant information substantiating the need for an administrative review shall have the right to request for an administrative review by the Government to determine one or more of the following:
whether the continued imposition of the anti-dumping duty is necessary to offset dumping;
whether the injury would be likely to continue to recur if the duty were removed or varied:
Provided that the period specified in subsection (6) has lapsed since the imposition of the definitive anti-dumping duty.
Refund review
Government, or the Government otherwise obtains information, that—
A request for a refund review shall be submitted in writing to the Government and shall contain—
a list of all entries of the subject merchandise into
Malaysia for which the refund review is requested; and
all relevant evidence to show that the importer is entitled to a refund on each such entry.
Where, on the completion of a refund review under this section, the Government determines that—
the anti-dumping duty that was imposed is higher than the anti-dumping duty that should have been imposed in the circumstances, the Government shall refund such amount of the anti-dumping duty collected as it deems fit.
A refund under subsection (3) shall, as far as practicable, be made within ninety days from the date of the determination of the refund review.
A finding in the refund review that no anti-dumping duty should have been imposed shall not by itself require the Government to terminate the definitive anti-dumping duty.
Expedited review
No anti-dumping duty shall be imposed on imports from the exporters or producers referred to in subsection (1) while the review is being carried out.
Notwithstanding subsection (2), the Government may withhold an appraisement or request guarantees to ensure that, should a review under subsection (1) result in a determination of dumping and injury caused thereby in respect of exports of the subject merchandise into
Malaysia by the exporters or producers referred to in subsection (1), anti-dumping duties may be imposed retroactively to the date of the initiation of the review.
Anti-dumping action on behalf of third country
The request referred to in subsection (1) shall be supported by price information to show that the imports are being dumped and by detailed information to show that the alleged dumping is causing injury to the domestic industry concerned in the third country.
The government of the third country shall give all assistance to the Government to obtain any further information as may be necessary for the investigation.
In considering a request under this section, the Government
52 Laws of Malaysia ACT 504
shall consider the effects of the alleged dumping on the industry concerned as a whole in the third country.
The decision whether to proceed with an anti-dumping duty investigation on behalf of a third country shall rest solely with the
Government.
If the Government decides to initiate an anti-dumping duty investigation under this section, the Government shall obtain the approval of the Council for Trade in Goods of the World Trade
Organization before beginning the investigation.
Part IV
Administrative matters
Subject to the provisions of this Act, any action to be conducted or taken under this Act shall be conducted or taken by any person or officer authorized in writing in that behalf by the Minister.
Any finding of an investigation, whether for the purpose of a preliminary or final determination, or a review, under this Act, shall be forwarded to the Minister.
The Minister shall make a recommendation to the Minister of
Finance who shall make a determination or a decision.
The collection of any countervailing or anti-dumping duty imposed under this Act shall be conducted by an officer of customs.
If any question arises as to whether any particular product is or is
Countervailing and Anti-Dumping Duties 53
not included in any notification given under this Act, such question shall be referred to the Minister who shall make a decision on the matter.
Protection of officers and persons acting under direction of officers
No action or prosecution shall be brought, instituted or maintained in any court against any person or officer authorized under this Act for or on account of or in respect of any act ordered or done for the purpose of carrying into effect this Act, and no suit or prosecution shall lie in any court against any other person for or on account of or in respect of any act done or purported to be done by him under the order, direction or instruction of any such person or officer if the act was done in good faith and in a reasonable belief that it was necessary for the purpose intended to be served thereby.
(Deleted by Act A1046).
Regulations in respect of specified areas
The Minister of Finance may, in respect of certain areas to be specified in regulations made under this section, make special provision to regulate those specified areas for the purposes of this
Act.
Application of the Customs Act 1967
In the event of any inconsistency occurring between the provisions of the Customs Act 1967 and the provisions of this Act, the provisions of this Act shall prevail.
54 Laws of Malaysia ACT 504
Judicial review
A request for judicial review shall be filed in the High Court within thirty days after the publication of the final determination or the final administrative review determination in question.
A request for judicial review shall not be filed in the High Court unless the final determination or final administrative review determination in question has been published by the Government in accordance with this Act.
Notwithstanding subrule 1(5) of Order 53 of the Rules of the
High Court 1980, a request for judicial review in the High Court shall not hinder the Government from collecting the countervailing duty or anti-dumping duty imposed under any final determination or final administrative review determination.
Part V
Cumulative assessment
Subsection (1) shall apply only if the Government determines—
that the amount of a subsidy or the margin of dumping established in relation to the imports from each country is more than de minimis;
that the volume of imports of the subject merchandise from each country is not negligible; and
that the cumulative assessment of the effects of the imports of the subject merchandise is appropriate in view of the conditions of competition between the subject merchandise, and the conditions of competition between the subject merchandise and the like domestic product.
False statements
Countervailing and Anti-Dumping Duties 55
Any information provided which is false or materially inaccurate shall be rejected without prejudice to whatever penalties that may be applicable under regulations made under this Act or any other written law.
Anti-circumvention measures
The Government may take action to prevent circumvention of the application of countervailing and anti-dumping duties as may be prescribed.
Notice of information and opportunities to present evidence
As soon as an investigation has been initiated, the Government shall provide the full text of the written petition received under subsection 4(1) or 20(1), as the case may be, to the known exporters and the exporting Members and shall make it available, upon request, to the other interested parties involved, due regard being given to the protection of confidential information.
Subject to the requirement to protect confidential information, evidence presented in writing by any interested Member or interested party shall be made available immediately to the other interested
Members or interested parties involved in the investigation.
The Government shall, whenever practicable, provide timely opportunities for all interested Members and interested parties to see all information that is relevant to the presentation of their case provided that the information is not confidential and is used by the
Government in the investigation.
Confidential information
The confidential nature of a document shall not be used as a reason for refusing to provide it to the Government.
The Government shall be responsible for ensuring the confidentiality of such documents.
Confidential information shall not be disclosed without specific written permission from the party submitting the confidential information.
Countervailing and Anti-Dumping Duties 57
The Government shall require parties providing confidential information to furnish non-confidential summaries that are sufficient in detail to permit reasonable understanding of the substance of the confidential information.
In the event such parties indicate that such information is not susceptible of summary, a statement of reasons why summarization is not possible shall be provided.
The Government may disregard information presented if—
the Government finds that a request for confidentiality under subsection (1) is not warranted and the supplier of the information nevertheless is unwilling to make the information public or to authorize its disclosure in a generalized or summary form unless it can be demonstrated to the Government’s satisfaction from appropriate sources that the information is correct;
the non-confidential summaries as required under subsection (5) are not in sufficient detail; or
the reasons given for not providing non-confidential summaries under subsection (6) are not deemed adequate and the party supplying the information nevertheless refuses to provide non-confidential summaries.
Verification of information
The Government may decide to verify the accuracy of any information submitted during an investigation or administrative review in the prescribed manner.
Use of facts available
58 Laws of Malaysia ACT 504
not provide, necessary information within a reasonable period or significantly impedes an investigation or review, including refusal to allow verification of its information, preliminary and final determinations in investigations or reviews under this Act may be made on the basis of the facts available, including the facts contained in the petition received under subsection 4(1) or 20(1), as the case may be.
Other practices discovered during the investigation
If in the course of an investigation the Government discovers practices which appear to be subsidies or dumping, but were not included in the matters alleged in the petition, then the Government may, if there is sufficient time, investigate the practices.
Conduct of investigation where no international obligations apply
countervailing and anti-dumping duties may be imposed without regard to an investigation referred to in sections 4
and 20; and
the Government shall be entitled to use any administrative and legal definition, methodology and procedure it deems appropriate, with regard to the investigations.
When applying the provisions of subsection (1), consideration shall be given to the laws and regulations of the interested foreign government and their application to Malaysian exports.
Transhipment
In cases where merchandise is not imported into Malaysia
Countervailing and Anti-Dumping Duties 59
directly from the country of origin, but is exported to Malaysia from an intermediate country, the provisions of the Act shall be fully applicable and the transaction, for the purposes of this Act, shall be regarded as having taken place between the country of origin and
Malaysia.
Publication of notices
All notices required to be published under this Act shall be published in the Gazette, unless otherwise specified.
Double counting not permitted
No merchandise shall be subject to both anti-dumping and countervailing duties to compensate for the same situation of dumping or subsidization.
Customs clearance not to be hindered
Any investigation conducted under this Act shall not hinder procedures for customs clearance.
Public servants
Any person acting for and on behalf of or under the direction of the Government under this Act shall be deemed to be a public servant within the meaning of the Penal Code [Act 574].
Obligation of secrecy
Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.
Power to make regulations
Without prejudice to the generality of subsection (1), regulations may be made—
to provide for extensions of time for any action to be taken and the circumstances when extensions may be granted;
to provide for the form and content of notices required for the purposes of this Act and the procedures related to the giving of such notices;
to provide for any fee to be charged in respect of any matter or things required for the purposes of this Act;
Countervailing and Anti-Dumping Duties 61
to provide for the forms of undertakings which may be accepted by the Government and the procedures related thereto; and
to provide for all matters which are required to be prescribed or which are necessary or expedient to give effect to this Act.
Regulations under this section—
may provide that any act or omission in contravention of any provisions thereof shall be an offence; and
may provide for the imposition of penalties which shall not exceed three hundred thousand ringgit for such offence.
Repeal of the Customs (Dumping and Subsidies) Act 1959
The Customs (Dumping and Subsidies) Act 1959 [Act 361] is hereby repealed.
62
Act 504
LIST OF AMENDMENTS
Amending law
Short title
In force from
Countervailing and Anti-Dumping
Duties (Amendment) Act 1998
01-12-1999
63
Act 504
LIST OF SECTIONS AMENDED
Section
Amending authority
In force from
2
Part 1A
3
4
5
7A
8
10
11
01-12-1999 12
12A
13
13A
13B
14
15
16
17
64 Laws of Malaysia ACT 504
Section
Amending authority
In force from
18
20
22A
Act A1046 01-12-1999 23
01-12-1999 25
01-12-1999 26
01-12-1999 27
01-12-1999 27A
01-12-1999 28
01-12-1999 28A
01-12-1999 29
01-12-1999 30
01-12-1999 32
01-12-1999 34A
01-12-1999 35
01-12-1999 38
01-12-1999 39
01-12-1999 40
01-12-1999 41
01-12-1999 47
01-12-1999 50
01-12-1999