General Agreement on Tariffs and Trade in the United States

Article V
Freedom of Transit

1. Goods (including baggage), and also vessels and other means of
transport, shall be deemed to be in transit across the territory of a
contracting party when the passage across such territory, with or without
trans-shipment, warehousing, breaking bulk, or change in the mode of
transport, is only a portion of a complete journey beginning and
terminating beyond the frontier of the contracting party across whose
territory the traffic passes. Traffic of this nature is termed in this
Article ” traffic in transit “.

2. There shall be freedom of transit through the territory of each
contracting party, via the routes most convenient for international
transit, for traffic in transit to or from the territory of other
contracting parties. No distinction shall be made which is based on the
flag of vessels, the place of origin, departure, entry, exit or
destination, or on any circumstances relating to the ownership of goods,
of vessels or of other means of transport.

3. Any contracting party may require that traffic in transit through its
territory be entered at the proper custom house, but, except in cases of
failure to comply with applicable customs laws and regulations, such
traffic coming from or going to the territory of other contracting
parties shall not be subject to any unnecessary delays or restrictions
and shall be exempt from customs duties and from all transit duties or
other charges imposed in respect of transit, except charges for
transportation or those commensurate with administrative expenses
entailed by transit or with the cost of services rendered.

4. All charges and regulations imposed by contracting parties on traffic
in transit to or from the territories of other contracting parties shall
be reasonable, having regard to the conditions of the traffic.

5. With respect to all charges, regulations and formalities in connection
with transit, each contracting party shall accord to traffic in transit
to or from the territory of any other contracting party treatment no less
favourable than the treatment accorded to traffic in transit to or from
any third country.

6. Each contracting party shall accord to products which have been in
transit through the territory of any other contracting party treatment no
less favourable than that which would have been accorded to such products
had they been transported from their place of origin to their destination
without going through the territory of such other contracting party. Any
contracting party shall, however, be free to maintain its requirements of
direct consignment existing on the date of this Agreement, in respect of
any goods in regard to which such direct consignment is a requisite
condition of eligibility for entry of the goods at preferential rates of
duty or has relation to the contracting party’s prescribed method of
valuation for duty purposes.

7. The provisions of this Article shall not apply to the operation of
aircraft in transit, but shall apply to air transit of goods (including
baggage).

Article VI
Anti-dumping and Countervailing Duties

1. The contracting parties recognize that dumping, by which products of
one country are introduced into the commerce of another country at less
than the normal value of the products, is to be condemned if it causes or
threatens material injury to an established industry in the territory of
a contracting party or materially retards the establishment of a domestic
industry. For the purposes of this Article, a product is to be considered
as being introduced into the commerce of an importing country at less
than its normal value, if the price of the product exported from one
country to another

(a) is less than the comparable price, in the ordinary course of trade,
for the like product when destined for consumption in the exporting
country, or,

(b) in the absence of such domestic price, is less than either

(i) the highest comparable price for the like product for export
to any third country in the ordinary course of trade, or

(ii) the cost of production of the product in the country of
origin plus a reasonable addition for selling cost and
profit.

Due allowance shall be made in each case for differences in conditions
and terms of sale, for differences in taxation, and for other differences
affecting price comparability.

2. In order to offset or prevent dumping, a contracting party may levy on
any dumped product an anti-dumping duty not greater in amount than the
margin of dumping in respect of such product. For the purposes of this
Article, the margin of dumping is the price difference determined in
accordance with the provisions of paragraph 1.

3. No countervailing duty shall be levied on any product of the territory
of any contracting party imported into the territory of another
contracting party in excess of an amount equal to the estimated bounty or
subsidy determined to have been granted, directly or indirectly, on the
manufacture, production or export of such product in the country of
origin or exportation, including any special subsidy to the
transportation of a particular product. The term “countervailing duty”
shall be understood to mean a special duty levied for the purpose of
offsetting any bounty or subsidy bestowed, directly or indirectly, upon
the manufacture, production or export of any merchandise.

4. No product of the territory of any contracting party imported into the
territory of any other contracting party shall be subject to anti-dumping
or countervailing duty by reason of the exemption of such product from
duties or taxes borne by the like product when destined for consumption
in the country of origin or exportation, or by reason of the refund of
such duties or taxes.

5. No product of the territory of any contracting party imported into the
territory of any other contracting party shall be subject to both anti-
dumping and countervailing duties to compensate for the same situation of
dumping or export subsidization.

6. (a) No contracting party shall levy any anti-dumping or countervailing
duty on the importation of any product of the territory of another
contracting party unless it determines that the effect of the dumping or
subsidization, as the case may be, is such as to cause or threaten
material injury to an established domestic industry, or is such as to
retard materially the establishment of a domestic industry.

(b) The CONTRACTING PARTIES may waive the requirement of subparagraph
(a) of this paragraph so as to permit a contracting party to levy an
anti-dumping or countervailing duty on the importation of any product for
the purpose of offsetting dumping or subsidization which causes or
threatens material injury to an industry in the territory of another
contracting party exporting the product concerned to the territory of the
importing contracting party. The CONTRACTING PARTIES shall waive the
requirements of sub-paragraph (a) of this paragraph, so as to permit the
levying of a countervailing duty, in cases in which they find that a
subsidy is causing or threatening material injury to an industry in the
territory of another contracting party exporting the product concerned to
the territory of the importing contracting party.

(c) In exceptional circumstances, however, where delay might cause
damage which would be difficult to repair, a contracting party may levy a
countervailing duty for the purpose referred to in sub-paragraph (b) of
this paragraph without the prior approval of the CONTRACTING PARTIES;
Provided that such action shall be reported immediately to the
CONTRACTING PARTIES and that the countervailing duty shall be withdrawn
promptly if the CONTRACTING PARTIES disapprove.

7. A system for the stabilization of the domestic price or of the return
to domestic producers of a primary commodity, independently of the
movements of export prices, which results at times in the sale of the
commodity for export at a price lower than the comparable price charged
for the like commodity to buyers in the domestic market, shall be
presumed not to result in material injury within the meaning of paragraph
6 if it is determined by consultation among the contracting parties
substantially interested in the commodity concerned that:

(a) the system has also resulted in the sale of the commodity for
export at a price higher than the comparable price charged for the
like commodity to buyers in the domestic market, and

(b) the system is so operated, either because of the effective
regulation of production, or otherwise, as not to stimulate exports
unduly or otherwise seriously prejudice the interests of other
contracting parties.