Law of Trade Remedies in International Trade

Chapter 1: General Provisions

Article 1

In this Law, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise:
Kingdom: Kingdom of Saudi Arabia.
Law: Law of Trade Remedies in International Trade.
Regulations: Implementing Regulations of this Law.
Trade Remedies: Matters relating to the WTO’s Anti-Dumping Agreement, Agreement on Subsidies and Countervailing Measures, and Agreement on Safeguards.
Authority: General Authority of Foreign Trade.
Board: Board of Directors of the Authority.
Chairman: Chairman of the Board. Governor: Governor of the Authority. Department: The department in the Authority in charge of trade remedies. WTO: World Trade Organization.
Unified Law: GCC Unified Law on Anti-Dumping and Countervailing and Safeguard Measures (amended).
GCC States: Member States of the Cooperation Council for the Arab States of the Gulf.
Dumping: Exporting a product to the Kingdom at an export price lower than the normal value of a like product in the ordinary course of trade when such product is destined for domestic consumption in the exporting country. Dumped Imports: The Kingdom's imports of a product under anti-dumping investigation the price of which is allegedly dumped or is established by such investigation to be dumped.
Dumping Margin: An amount determined by calculating the difference between the normal value and the export price during the investigation period.
Normal Value: The price paid, or to be paid, for a like product in the market of the exporting country in the ordinary course of trade when such product is destined for consumption in the exporting country, or as specified in the Regulations.
Export Price: The price paid, or to be paid, for a product under investigation when such product is exported to the Kingdom, or as specified in the Regulations.
Subsidy: A financial contribution provided by a government or any public agency in a country which results in a benefit, and which takes any of the forms of subsidy stipulated in Article 1 of the Agreement on Subsidies and Countervailing Measures.
Specific Subsidy: A subsidy which is allocated to an enterprise or industry or group of enterprises or industries, or to a designated geographical region, or which relates to exportation or to the substitution of a domestic product for an imported product, in accordance with Article 2 of the Agreement on Subsidies and Countervailing Measures.
Subsidized Imports: The Kingdom's imports of a product under countervailing measures investigation which allegedly received a benefit due to a specific subsidy or is established by such investigation to have received such a benefit.
Amount of Subsidy: An amount determined by calculating the value of the benefit accrued to the recipient of a specific subsidy during the investigation period.
Injury: Material injury, or a threat of injury, to the domestic industry, or material retardation of an emerging domestic industry.
Like Product: A product which is identical, i.e., alike in all respects, to the product under investigation, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under investigation; in safeguard measures investigations, it is the product that is like or directly competitive to the product under investigation.
Imports Destined for the Kingdom: Imports intended for domestic consumption in the Saudi market.
Increase in Imports: An increase in the quantities of imports destined for the Kingdom of a product under safeguard measures investigation, whether in absolute terms or in proportion to domestic production, and which causes or threatens to cause serious injury to the domestic industry.
Serious Injury: A significant overall impairment in the position of the domestic industry.
Threat of Serious Injury: A serious injury that is clearly imminent as shown by facts, and which is not based on mere allegation or remote possibility.
GCC Investigations: Investigations conducted in accordance with the Unified Law.
Investigation: An anti-dumping investigation and countervailing and safeguard measures investigation conducted by the Authority, whether on its own motion or upon a complaint. Investigation Period: The time periods announced by the Authority in each investigation or review procedure during which the information and evidence of interested parties which relate to the investigation or the review is collected and examined.
Measures/Trade Remedy Measures: Anti-dumping measures, countervailing measures, and safeguard measures imposed by the Authority.
Product Under Investigation: A product imported into the Kingdom which is under investigation or review, excluding service products.
Review: Any type of review conducted by the Authority, whether on its own motion or upon request.
Interim Review: A review conducted by the Authority, on its own motion or upon request, in the event of any change in circumstances requiring a review of the level, scope, or form of measures.
Expiry Review: A review conducted by the Authority, on its own motion or upon a request made by or on behalf of the domestic industry, which is initiated prior to the end of the application period of anti-dumping measures and countervailing measures, to determine whether the termination of the measures would likely lead to the continuation or recurrence of dumping or subsidy and the continuation or recurrence of injury.
Mid-Term Review of Safeguard Measures: A review conducted by the Authority, on its own motion or upon request, prior to the mid-term of the application period of safeguard measures which exceeds three years, to review the position of the industry, the impact of the measures, and the need to withdraw the measures or increase the pace of their liberalization.
Review of the Extension of Safeguard Measures: A review conducted by the Authority, on its own motion or upon a request made by or on behalf of the domestic industry, to assess the need to extend safeguard measures to prevent or remedy a serious injury, provided that there are indications that the domestic industry is adapting to the application of the measures.
Refund Review: A review initiated upon a request made by or on behalf of an importer to claim a refund of a certain paid amount equal to the difference between the imposed antidumping duties paid by him and the actual dumping margin of his imports of the product subject to the measure during the review period.
New Exporter Review: A review initiated after the imposition of definitive anti-dumping measures or countervailing measures upon a request made by or on behalf of an exporter who did not export during the investigation period, and who was not associated with an exporter or producer who was exporting the product under investigation during the investigation period.
Anti-circumvention Review: A review conducted by the Authority, on its own motion or upon a request made by or on behalf of an interested party or by a government agency, to determine if circumvention to the measures has occurred, which may result in amending the scope or level of such measures in accordance with Chapter 6 of this Law. Domestic Industry: Producers as a whole of the like products operating within the Kingdom, or producers who collectively account for a major proportion of the total domestic production of such products in the Kingdom. In safeguard measures investigations, the term refers to producers as a whole of the like products or directly competitive products operating within the Kingdom, or producers who collectively account for a major proportion of the total domestic production of the like products or directly competitive products in the Kingdom.
Interested Parties: Exporters, foreign producers, and importers of a product under investigation; trade or business associations the majority of the members of which are producers, exporters, or importers of a product under investigation; domestic producers of a like product and trade or business associations the majority of the members of which produce the like product in the Kingdom; producers in the Kingdom whose industrial inputs include a product under investigation; governments of exporting countries; and any other domestic or foreign parties with a direct interest in a product under investigation, provided that the interested party declares itself as such within the time period specified in the Regulations.
Persons of Public Interest: Government agencies and civil society organizations and associations in the Kingdom which are not included in the definition of interested parties, and which have an opinion on the impact of the imposition of measures on public interest; these shall include, for example, agencies concerned with consumers, public health, and domestic market competitiveness as well as other agencies concerned with issues of public interest.
Relevant Government Agencies: All government agencies in the Kingdom that are deemed by the Authority to be relevant to investigations and reviews.

Article 2

This Law aims to protect the domestic industry from injury resulting from dumped and subsidized imports, safeguard against the increase in imports, and defend the Kingdom's exports which are subject to trade remedies.

Article 3

1. Investigation and review procedures and any measures resulting therefrom shall be applied to imports destined for the Kingdom from WTO member states in accordance with the provisions of this Law and the Regulations.
2. The Governor may, upon conducting investigations and reviews of imports destined for the Kingdom from non-WTO member states, apply the provisions of this Law and the Regulations in whole or in part, or take other procedures in a manner that is not inconsistent with the Kingdom’s international undertakings.

Chapter 2: Executive Authorities

Article 4

1. The Authority shall be responsible for trade remedies, including conducting investigations and reviews and imposing measures in accordance with the Kingdom's international undertakings, particularly the Anti-Dumping Agreement, Agreement on Subsidies and Countervailing Measures, and Agreement on Safeguards.
2. The Department shall receive and examine complaints and review requests, decide whether to accept or reject the same, and form investigation teams to conduct investigations and reviews. It may, for such purpose, request, receive, collect, access, and retain all the confidential and non-confidential information required for conducting the investigations and reviews. The Department shall examine and verify the same, issue reports, and submit its findings to the Governor, in accordance with the provisions of this Law and the Regulations.
3. The Governor shall have the power to initiate investigations; terminate investigations without imposing measures; initiate reviews; submit recommendations to the Chairman to impose, extend, or terminate the measures, amend their amount, form, or scope, and refund the provisional or definitive duties or part thereof; apply import registration and control procedures and import licenses and add tariff subheadings; and impose fines and decide on appeals related thereto, in accordance with the provisions of this Law and the Regulations.
4. The Chairman may decide whether or not to impose provisional and definitive trade remedy measures upon the Governor’s recommendations regarding the results of investigations and reviews. He may also reduce, extend, and terminate the measures, amend their amount, form, and scope, and refund the provisional and definitive duties or part thereof. He shall have the power to decide on matters of public interest and consider appeals filed by interested parties, in accordance with the provisions of this Law and the Regulations. The Chairman may also, at his discretion, form advisory committees and technical teams to assist in decision-making.
5. Relevant government agencies shall, upon the Authority’s request, provide the information necessary for investigations and reviews. Such agencies shall take the steps necessary to implement the measures in accordance with the time frame and tasks required by the Authority. The Authority shall provide the necessary information to enable each relevant government agency to carry out the tasks required thereof.

Chapter 3: Final Measures

Article 5

1. A decision may be made to impose definitive anti-dumping and countervailing measures in the form of definitive duties and price undertakings pursuant to an anti-dumping and countervailing measures investigation conducted in accordance with the provisions of this Law and the Regulations, provided that such investigation results in a final affirmative determination that the imports are dumped or subsidized, cause or threaten to cause material injury to the domestic industry, or retard the establishment of an emerging domestic industry.
2. A decision may be made to impose definitive safeguard measures in the form of definitive duties and quantitative restrictions pursuant to a safeguard measures investigation conducted in accordance with the provisions of this Law and the Regulations, provided that such investigation results in a final affirmative determination of the existence of an increase in imports that caused or threatens to cause serious injury to the domestic industry. The Regulations shall specify the conditions for determining quantitative restrictions and the manner of quota distribution.
3. Definitive measures shall apply to imports destined for the Kingdom which are subject to the measure pursuant to the decision imposing the definitive measures. They shall also retroactively apply to products subject to the decision imposing provisional measures pursuant to Article 10 of this Law; to imports subject to registration and control pursuant to Article 11(2) of this Law; and to imports subject to registration pursuant to this Law when the conditions for final collection are met.

Article 6

1. Anti-dumping and countervailing measures shall be applied for the period and to the extent necessary to combat dumping and specific subsidy which cause injury to the domestic industry. Safeguard measures shall be applied only to the extent necessary to prevent or remedy serious injury so as to enable the domestic industry to adjust.
2. The level, form, or scope of definitive measures may be amended as a result of the interim review or the anti-circumvention review. In anti-dumping and countervailing measures investigations, a measure may be determined for a new exporter after imposing definitive measures pursuant to the new exporter review, in accordance with the provisions of this Law and the Regulations.

Article 7

1. Definitive anti-dumping and countervailing measures shall be imposed for a period not exceeding five years from the effective date of the decision to impose such measures, including the imposition period of the provisional measures, or from the date of the last interim review resulting in an affirmative determination of the potential continuation or recurrence of dumping or specific subsidy or the potential continuation or recurrence of injury if the measures are terminated.
2. Definitive anti-dumping and countervailing measures may be extended for subsequent periods of not more than five years for each extension period, whether on an as-is basis or by amending such measures if the scope of the review provides for amendment, provided that the expiry review is initiated prior to the expiration of the imposition period of the measures and that such review establishes the potential continuation or recurrence of dumping or specific subsidy or the potential continuation or recurrence of injury to the domestic industry if the measures are terminated. The definitive measures shall continue to be imposed beyond the five-year period until the expiry review is completed.
3. Definitive safeguard measures shall be imposed for an initial period not exceeding four years from the effective date of the decision to impose such measures, including the imposition period of the provisional measures. If the imposition period of the safeguard measures exceeds one year, the level of such measures shall be progressively liberalized every year during the imposition period.
4. The imposition period of safeguard measures may be extended for subsequent periods, provided that a review of the extension of safeguard measures is conducted in accordance with the Regulations; the total imposition period of such measures does not exceed 10 years from the date of imposition thereof, including the initial imposition period and the extension periods; and the safeguard measures the period of imposition of which has been extended are less restrictive than the imposed measures. The Authority shall conduct a mid-term review of the safeguard measures in accordance with the Regulations.
5. Safeguard measures shall not be applied again to a product on which definitive safeguard measures were imposed, except after the lapse of a non-application period equal to half the imposition period of the previous safeguard measures, provided that the nonapplication period is not less than two years. The Authority may, when imposing safeguard measures the imposition period of which does not exceed 180 days, reimpose such measures on the same product upon the lapse of at least one year from the imposition date of the safeguard measures on said product, provided that such measures are not applied to the same product more than twice during the five-year period following the imposition date of the previous safeguard measures.

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