LAW OF THE REPUBLIC OF MOLDOVA

of February 17, 2000 No. 820-XIV

About anti-dumping, countervailing and protective measures

The Parliament adopts this organic law.

Chapter I GENERAL PROVISIONS

Article 1. Scope of the law

This law establishes applicable protectionist measures against the import constituting subject of dumping or subsidized with the country of goods' origin or the exporting country and also against import which quantity or delivery conditions causes damage or poses threat of causing damage to domestic manufacturers of similar or directly competitive goods.

Article 2. Basic concepts

For the purposes of this law the following basic concepts are used:

dumping - commodity importation on the market at the price is lower than its normal cost if export price of these goods when exporting from one country to another below the comparable price established within customary trade practice on the similar goods intended for consumption in the domestic market of the exporting country;

subsidy - direct or indirect financial assistance of bodies of the public power to business entities for the purpose of increase in profitability of export activities;

the anti-dumping duty - the special duty collected from the goods imported at the prices is lower than their normal cost in the exporting country at the time of import;

the compensatory duty - the special duty collected for the purpose of neutralization of any financial assistance rendered directly or indirectly for production incentive or export of any goods;

protective measures - the measures taken in case of commodity import in quantities and/or on conditions which cause or threaten to cause serious damage to industry of the national industry;

the exporting country - as a rule, the country of goods' origin. However it can be also the intermediate country, except as specified, when simple resending through this country takes place, or the considered goods are not made in this country, or in it there are no comparable prices of such goods;

industry of the national industry - domestic manufacturers of similar goods in general or those from them whose cumulative production constitutes the main part of general national production of such goods;

normal cost - the cost based on the price of similar goods paid or subject to payment within customary trade practice by independent buyers in the exporting country;

margin of dumping - difference between export price and normal cost of the considered goods;

damage - if other is not provided, the significant or serious damage caused to industry of the national industry, threat of drawing significant or serious damage of industry of the national industry or essential delay in formation of industry of the national industry;

the considered goods - goods concerning which investigation is made;

the similar goods - identical goods or other goods which, without being similar in every respect with the considered goods, has the characteristics close to characteristics of the considered goods that allows them to perform the same functions and to be interchangeable in the commercial relation. In case of establishment of whether goods are similar, such factors as goods quality, its reputation, availability industrial or trademark are considered;

concerned parties:

- the exporter, either the foreign producer, or the importer of the considered goods either sales or entrepreneurial association most of which of members are producers, exporters or importers of the considered goods;

- government of the exporting country;

- the producer of similar goods in the Republic of Moldova either sales or entrepreneurial association most of which of members make similar goods in the Republic of Moldova;

body of investigation - the body of public management of the Republic of Moldova responsible for development, regulation and supervision of implementation of anti-dumping, countervailing and protective measures.

Chapter II ANTI-DUMPING MEASURES

Article 3. General principles

(1) the Anti-dumping duty can be applied to any dumping goods in that case when damage is caused to domestic manufacturers and between dumping and the caused damage there is cause and effect relationship.

(2) the Goods are considered dumping if its export price when importing to the Republic of Moldova below the comparable price established within customary trade practice on the similar goods intended for consumption in the domestic market of the exporting country.

Article 4. Dumping determination

(If the exporter does not make 1) and does not sell similar goods in the exporting country, normal value of a product is established on the basis of the prices of other sellers or producers. The prices between the parties between which communication or the compensation agreement is supposed are not recognized the regular prices within customary trade practice transactions and cannot be used for determination of normal cost, except as specified, when it is determined that they are not distorted by the existing relations.

(2) Sales of the similar goods intended for consumption in the domestic market of the exporting country usually are considered as performed in the quantity sufficient for determination of normal cost if the amount of such sales makes no more than 5% of sales volume of the considered goods to the Republic of Moldova. Also the smaller sales volume if it is rather considerable for ensuring proper comparison can be considered acceptable.

(3) If sales of similar goods within customary trade practice in the domestic market of the exporting country are not made or are insufficient or if owing to special situation in the domestic market of the exporting country such sales do not allow to carry out proper comparison, the normal cost of similar goods is determined:

a) on the basis of costs of production in the country of goods' origin with addition of reasonable trading, total and administrative costs and profits; or

b) on the basis of the prices of export to the suitable third country within customary trade practice provided that these prices are representative.

(4) Sales of similar goods in the domestic market of the exporting country or sale to the third country at the prices below costs of production (constants or variables) per unit of products can reckon not corresponding with addition of trading, total and administrative costs to framework of customary trade practice because of the price and can not be considered in case of determination of normal cost only in case such sales were performed during the long period in considerable amounts and at the prices which are not providing covering of all costs within limits of period of time.

If the prices are lower than unit costs at the time of sale, but above the weighted average unit costs for the period of investigation, then such prices are considered providing covering of costs within limits of period of time.

The long period usually is one year, but not the period less than six months at all.

Sales at the prices are lower than unit costs are considered performed in considerable amounts if by body of investigation it is determined that weighted average price of sales is lower than the weighted average unit costs or that sales volume at the prices below unit costs constitutes at least 20% of sales volume taken into account for determination of normal cost.

(5) As a rule, calculation of costs is made on the basis of the accounting records which are available for the party concerning which investigation is made provided that such records correspond to the commonly accepted principles of financial accounting in the exporting country and rather truly reflect the costs connected with production and sale of the considered goods.

The available proofs of proper cost allocation are taken into account provided that the corresponding type of distribution practices traditionally. In the absence of more suitable method preference is given to cost allocation on the basis of sales volume. If it is not reflected any more in case of cost allocation according to this paragraph, costs are adjusted for accounting of the irretrievable costs intended for future and/or current production.

If the costs relating to part of the period necessary on covering of costs were affected by use of the new production capacities requiring considerable additional investment, and the low extent of loading of capacities which are consequence of the fact that it is bringing the created production in inquiry period, then the average costs attributable to the period of creation of new production those which according to the above rules of cost allocation are available for the end of such period are considered and join at appropriate level in the weighted average costs relating to the considered period, the parts determined in the paragraph the second (4). Duration of the period of creation of new production is determined depending on situation of this producer or the exporter, but cannot exceed reasonable initial part of the period necessary for cost recovery. For cost adjustment, suffered in inquiry period, information concerning the production creation period which exceeds inquiry period is taken into account provided that such information is provided prior to checking visit and within three months since the beginning of investigation.

(6) the Extent of trading, total and administrative costs and profit are determined on the basis of actual data about production and sales of similar goods within customary trade practice by the exporter or producer concerning which investigation is made. If such sizes cannot be determined on this basis, they can be determined on basis:

a) the weighted actual averages relating to production and sales of similar goods in the domestic market of country of source, determined for other exporters or producers concerning which investigation is made;

b) the actual sizes applicable to production and sale of the same general type of goods of this exporter or producer in the domestic market of country of source within customary trade practice;

c) any other justified method provided that the size of profit established in such a way does not exceed the size of the profit which is usually received by other exporters or producers in case of sale of the same general type of goods in the domestic market of country of source.

(7) If import is performed from the countries with non-market economy, the normal cost is determined on the basis of the price or the modelirovanny cost of similar goods in the third country with market economy or the prices when exporting from such third country to other countries and if it is impossible, then on any other justified basis, including the price which is really paid or subject to payment for similar goods in the Republic of Moldova, properly corrected if it is necessary to include in it reasonable size in case of profit.

The suitable third country with market economy is chosen by justified method, taking into account any solid data available at the time of the choice. Also fixed terms are taken into account. If it is possible, the third country with market economy concerning which the same investigation is made is chosen.

To the parties affected by investigation soon after its beginning it is reported about the provided choice of the third country with market economy and 10 days for submission of comments are provided.

(8) Export price is the price which is actually paid or subject to payment for the goods sold for export to the Republic of Moldova.

(9) In cases when export price is absent or when as believes body of investigation, there is communication or the compensation agreement between the exporter and the importer or the third party or when for other motives the price which is actually paid for the sold exported goods, cannot serve as estimated price, export price can be simulated on the basis of the price at which the imported goods for the first time are on sale to the independent buyer, or if goods are not on sale to the independent buyer or are not on sale in that type in what they were imported, - on any other justified basis.

In such cases adjustments of all costs, including the duties and taxes paid during the period between import and sale and the got profits are performed. These costs include all expenses incurred in usual conditions by the importer and paid by any partner who performs the activities in the Republic of Moldova or beyond its limits and has the contract on communication or the compensation agreement with the importer or the exporter.

The costs which are subject to adjustment include costs for transport, insurance, storage, loading unloading and the auxiliary costs, customs duties, anti-dumping duties and other taxes which are subject to payment in the Republic of Moldova and the reasonable sizes of total costs and profit, and also all commission payments paid or which are subject to payment regularly.

(10) fair comparison of export price and normal cost Is made. Such comparison is made at the same stage of trading activity and concerning the sales performed, whenever possible, at the same time. If the established normal cost and export price are not at one level of comparison, then in each case the corresponding distinctions which affect comparability of the prices, including distinctions in sales terms, the taxation, stage of trading activity, quantities and physical characteristics are considered. Any duplication when carrying out adjustments is avoided, in particular, concerning discounts, concessions, quantities and stage of trading activity. If the established conditions are satisfied, then adjustments on the following factors are made:

a) physical characteristics. Adjustment in connection with distinctions in physical characteristics of the considered goods is made. The size of adjustment corresponds to reasonable assessment of distinction of market value;

b) import taxes and indirect taxes. Adjustment of normal cost at the size corresponding to any import taxes or indirect taxes which are connected with the similar goods and materials entering it is made when the goods intend for consumption in the exporting country and which are not levied or are not compensated concerning the goods exported to the Republic of Moldova;

c) discounts, concessions and quantities. Adjustment in connection with distinctions in discounts and concessions, including made for distinctions in quantities is made if it is determined that they are properly measured and directly connected with the considered sales. Adjustment can be also made in connection with deferred rebates and concessions if the corresponding request is based on steady practice of previous periods, including accomplishment of conditions for receipt of discounts and concessions;

d) stage of trading activity. Adjustment in connection with distinctions in stages of trading activity, including any distinctions which can take place in connection with sales of the corporate equipment by the producer is made if concerning network of distribution in both markets it is proved that export price, including modelirovanny export price, corresponds to other stage of trading activity, than normal cost, and this distinction affected comparability of the prices that demostrirutsya by consecutive and clear distinctions in actions and the prices of the seller at different stages of trading activity in the domestic market of the exporting country. The size of adjustment corresponds to reasonable assessment of distinction of market value;

e) costs for transport, insurance, storage, loading unloading and auxiliary costs. Adjustment in connection with distinctions in the costs which are directly connected with delivery of the considered goods from the exporter's warehouse to the independent buyer is made if such costs are included in the quoted price. These costs include transport, insurance, storage, loading unloading and auxiliary costs;

f) packaging. Adjustment in connection with distinctions in the costs which are directly connected with costs for packaging of the considered goods is made;

g) credit. Adjustment in connection with distinctions in costs for any loan granted for the considered sales is made provided that this factor is considered when forming of the quoted price;

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