+-----------------------------------------------+----------------------+
| **[World Trade]{.smallcaps}**                 |                      |
|                                               |                      |
| **[Organization]{.smallcaps}**                |                      |
+-----------------------------------------------+----------------------+
|                                               |                      |
+-----------------------------------------------+----------------------+
|                                               | **G/AD               |
|                                               | P/N/1/BRA/2/Suppl.1\ |
|                                               | G/SCM                |
|                                               | /N/1/BRA/2/Suppl.1** |
|                                               |                      |
|                                               | 27 March 2002        |
+-----------------------------------------------+----------------------+
|                                               | (02-1570)            |
+-----------------------------------------------+----------------------+
|                                               |                      |
+-----------------------------------------------+----------------------+
| **Committee on Anti-Dumping Practices**       | Original: English    |
|                                               |                      |
| **Committee on Subsidies and Countervailing   |                      |
| Measures**                                    |                      |
+-----------------------------------------------+----------------------+

NOTIFICATION OF LAWS AND REGULATIONS under

ARTICLEs 18.5 and 32.6 OF THE AGREEMENTs

BRAZIL

[Supplement]{.underline}

The following communication, dated 21 March 2002, has been received from
the Permanent Mission of Brazil.

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Please find attached a copy of legislation (Circular 59 of the
Secretariat of Foreign Trade of the Ministry of Development, Industry
and Foreign Trade) enacted by the Brazilian Government, relating to
anti-dumping and countervailing duty investigations.

**MINISTRY OF DEVELOPMENT, INDUSTRY AND FOREIGN TRADE**

**Secretariat of Foreign Trade**

CIRCULAR NO. 59, DATED 28 NOVEMBER 2001

(PUBLISHED in the Official Gazette of 10 December 2001)

**THE SECRETARY FOR FOREIGN TRADE OF THE MINISTRY OF DEVELOPMENT,
INDUSTRY AND FOREIGN TRADE**, by using the prerogatives assigned to her
according to Article 17 of Annex I of Decree No. 3.839 of 7 June 2001,
makes the following understanding related to the conduction of trade
defence investigations available to the public:

**1. Confidential information**

1.1 The submission of confidential information is accepted, subject to
the provisions of paragraph 6 of Article 3 of Decree 1.488, dated 11 May
1995; of Article 28 of Decree 1.602 dated 23 August 1995; and of Article
38 of Decree 1.751, dated 19 December 1995.

1.2 Information submitted in confidence shall be separated from the
documents of the main process. Together with this confidential
information, a justification and a non-confidential summary shall be
provided, to allow for a reasonable understanding of the confidential
information. In cases where it is not possible to provide for the
summary, the parties or governments shall justify, in writing, this
circumstance.

1.3 The term CONFIDENTIAL shall be placed at the top-centre and at the
top-bottom of each page, preferably in a colour other than that of the
document. A sequential numbering shall be indicated on each page,
informing the page number and the total of pages of the whole document,
according to the provisions of Article 13 of Decree 2.910, dated 29
December 1998.

**2. Counting of time periods**

2.1 In the processes related to trade defence, addressed in the Decrees
mentioned in paragraph 1.1, the time periods start to count from the
date when the communication to the party is issued, excluding from the
counting the first day and including the last day.

2.2 The first day of the time period is the first working day subsequent
to the issuing of the communication.

2.3 The last day corresponds to the date of registration of the response
at the Department of Trade Defence - DECOM. The period shall be
considered postponed until the next working day, if the last day falls
on a non-working day or if the office is closed before the normal office
hours.

2.4 The time periods expressed in days are to be counted in a continuous
manner. The terms fixed in months or years are to counted from date to
date. If, in the expiry month, there is no day equivalent to that of the
initiation of the period, the final day of the month will be considered
as the expiry date.

2.5 The requests for extension, when admitted by law, can only be
examined if they have been presented before the expiry of the original
period.

2.6 The parties may provide information by means of a data and image
transmission system such as a facsimile or a similar one. The use of
this possibility aims at ensuring that the deadlines are met. The
originals must be necessarily delivered to the Protocol Division until
five days after the expiry date.

**3. Economies that are not predominantly market orientated**

3.1 The provisions of Article 7 of Decree 1.602, dated 23 August 1995,
apply only for obtaining the normal value when the investigation
involves countries with economies that are not predominantly market
orientated.

3.1.1. The interested parties will be informed, by means of
questionnaires, about the third country market economy to be used, and
they will be able to voice their opinion in the response to the
respective questionnaires, according to paragraph 3 of that same
Article.

3.1.2 In the investigation, the producer/exporter under investigation
and the respective government will be entitled to present elements of
proof with the aim of requesting a reassessment of this qualification,
involve information, *inter alia*, on exchange rates, interests, wages,
prices, equity control, stock exchange, investment, price formation of
relevant inputs and others that are considered adequate by the party or
by SECEX.

3.2 Considering the transformations undergone by several countries with
economies that are traditionally non-market orientated economies, which
reached the stage of economies in transition having implemented
important measures with a view to removing state monopolies and the
control and state intervention on domestic prices, the following
understanding will be adopted:

3.2.1 The following countries are considered as economies in transition:
Bulgaria, the Slovak Republic, Slovenia, Hungary, Poland, Romania and
the Czech Republic.

3.2.2 As regards the initiation of the investigation involving the
countries mentioned in paragraph 3.2.1, the provisions of Article 7 of
Decree 1.602, of 1995, shall not apply. However, if during the
investigation it is verified that the market rules do not prevail in the
sector where the producer/exporter under investigation operates, the
provisions of Article 7 may be applied for the calculation of the normal
value.

3.2.3 When forwarding the questionnaires, DECOM will request information
that allows for the obtaining of the normal value and the export price,
according to the provisions of Articles 5 and 6 of Decree 1602, of 1995.
If complete answers to the questionnaires are received, the information
may be subject to verification \"in loco\", according to the provisions
of Article 30 of the aforementioned Decree. If the information presented
is incomplete, determinations based on best information available may be
effected, according to Article 66 of the aforementioned Decree.

3.2.4 If, at any time during the investigation, DECOM concludes that
free market rules do not prevail in the sector in which the
producer/exporter under investigation operates, the provisions of
Article 7 may be applied in order to obtain the normal value. In this
context, information on prices or the constructed value in a third
market-economy country may be requested, for the possible use of the
provisions of Article 7 of Decree 1602, dated 1995.

3.3 For the assessment of the existence of market economy conditions,
the following elements, \"inter alia\", will be observed:

\(a\) the degree of government control over the companies or over the
means of production;

\(b\) the level of state control over the allocation of resources, over
prices and over the production decisions by companies;

\(c\) the legislation to be applied in terms of ownership, investment,
taxation and bankruptcy;

\(d\) the degree of freedom in the determination of wages in
negotiations between employers and employees;

\(e\) the level at which distortions inherited from the centralized
economy system persist in relation to, *inter alia*, assets
amortization, other assets deductions, direct swap of assets and
payments in the form of debt compensation; and

\(f\) the level of state interference on currency exchange operations.

LYTHA SPÍNDOLA

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