[World Trade]{.smallcaps} **G/ADP/N/1/BRA/2**

26 August 1997

[Organization]{.smallcaps}

(97-3480)

Original: English

**Committee on Anti-Dumping Practices**

[NOTIFICATION OF LAWS AND REGULATIONS]{.underline}

[UNDER ARTICLE 18.5 OF THE AGREEMENT]{.underline}

[BRAZIL]{.underline}

The following communication, dated 19 August 1997, has been received
from the Permanent Mission of Brazil.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[TABLE OF CONTENTS]{.underline}

[Page]{.underline}

Title I Procedures 3

Chapter I Principles 3

Chapter II Determination of Dumping 3

Section I Normal Value 4

Section II Export Price 6

Section III Comparison Between Normal Value and Export Price 6

Section IV Margin of Dumping 7

Chapter III Determination of Injury 8

Chapter IV Definition of Domestic Industry 10

Chapter V The Investigation 11

Section I Application 11

Section II Initiation of the Investigation 13

Section III Conduction of the Investigation 14

Subsection I Evidence 14

Subsection II Defence of the Interests of the Parties 16

[Page]{.underline}

Subsection III Final Procedures Concerning the Conduction

of the Investigation 16

Section IV Provisional Anti-Dumping Measures 17

Section V Price Undertakings 18

Section VI Conclusion of the Investigation 19

Chapter VI Imposition and Collection of Anti-Dumping Measures 20

Section I Imposition 20

Section II Charges 21

Section III Products Subject to Provisional and Definitive Anti-

Dumping Measures 21

Chapter VII Duration and Review of Anti-Dumping Measures and Price

Undertakings 22

Chapter VIII Public Notice and Explanation of Determinations 24

Chapter IX Anti-Dumping Actions on Behalf of a Third Country 24

Chapter X The Form of Procedural Acts and Terms 24

Chapter XI The Decision-Making Process 25

Title II Special Procedures 25

Chapter I On-The-Spot Investigations 25

Chapter II Best Information Available 26

Chapter III General Provisions 27

**DECREE Nº 1602 OF 23 AUGUST 1995**

**Regulates the Norms Governing**

**Administrative Procedures Regarding**

**the Imposition of Anti‑Dumping Measures**

The President of the Republic, by virtue of the powers vested in him by
Art. 84, sections IV and VI, of the Constitution and taking into
consideration the provisions of the Agreement Regarding the
Implementation of Article VI of the General Agreement on Tariffs and
Trade ‑ GATT 1994, approved by Legislative Decree nº 30 on 15 December
1994, and promulgated by Decree nº 1.355 of 30 December 1994, and Law nº
9.010 of 30 March 1995, wherein provision is made for the imposition of
the measures established by the Anti‑dumping Agreement,

DECREES:

**TITLE I**

**PROCEDURES**

**Chapter I**

**PRINCIPLES**

Art. 1. Anti‑dumping measures may be imposed when imports of primary and
non‑primary dumped products cause injury to domestic industry.

1.1 Anti‑dumping measures shall be imposed based on open investigations
initiated and conducted pursuant to the provisions of this Decree.

1.2 Pursuant to the provision of Paragraph 5 of Article VI of GATT/1994,
the import of a product may not be subject, simultaneously, to the
imposition of the anti‑dumping measure and a compensatory measure which
is part of the GATT/1994 Agreement on Subsidies and Compensatory
Measures.

Art. 2. It is within the competency of the Minister of Industry,
Commerce and Tourism and the Minister of Finance to make the decision to
impose, by joint action, provisional anti‑dumping measures or definitive
measures and approve price undertakings based on the findings of the
Secretariat of Foreign Trade ‑ SECEX, of the Ministry of Industry,
Commerce and Tourism, which determines the existence of dumping and the
resulting injury.

Art. 3. SECEX is responsible for undertaking the administrative process
that is governed by this Decree.

**Chapter II**

**DETERMINATION OF DUMPING**

Art. 4. For the purposes of this Decree, the practice of dumping is
considered to be the introduction of a product into the domestic market,
including under the method of drawback, at an export price that is below
the normal value.

**Section I**

**Normal Value**

Art. 5. Normal value is considered to be the price that is actually
being charged for the like product under ordinary course of trade, for
internal consumption in the exporting country.

5.1 The term "like product" shall be understood as an identical product,
that is equal in all aspects to the product being examined, or, in the
absence of such a product, another product that, although not exactly
equal in all aspects, has characteristics closely resembling those of
the product under consideration.

5.2 The term "exporting country" shall be understood as the country of
origin and of exportation, except in the hypothesis provided for in Art.
10.

5.3 The sales of the like product for internal consumption in the
exporting country shall be normally considered as being of sufficient
quantity for determining their normal value, if they constitute 5% or
more of the product´s sales to Brazil, allowing a lower percentage when
it shall be demonstrated that domestic sales at this percentage do occur
in sufficient quantity to permit adequate comparison.

Art. 6. Should there be no sales of the like product in the ordinary
course of trade in the domestic market or when, for reasons of special
market conditions or low sales volume, adequate comparison is
impossible, the normal value shall be based:

I. on the price of the like product being charged in exporting
operations to a third country, as long as this price is representative;
or

II\. on the value as determined in the country of origin, taking into
account the cost of production in the country of origin plus a
reasonable amount for administrative and selling costs, in addition to a
margin of profit.

6.1 For purposes of price, they may be considered as not being in the
ordinary course of trade and thus not considered in determining normal
value, those sales of the like product in the domestic market of the
exporting county or sales to a third country, at prices below per unit
(fixed and variable) costs of production, administrative and selling
costs being included.

6.2 The provision of the preceding paragraph shall be applied only when
it is shown that sales are made:

\(a\) over a long period, normally one year, but never less than six
months;

\(b\) in substantial quantities, being considered as such those
transactions taken into account for determining normal value, made at a
weighted average price for sales below the weighted average unit cost,
or a sales volume below the unit cost corresponding to 20% or more of
the volume sold in transactions considered for determining normal value;
and

\(c\) at prices that do not permit covering all costs within a
reasonable period of time.

6.3 The provision of item "c" of the preceding paragraph does not apply
when it is shown that the prices below the unit cost, at the moment of
sale, are above the weighted average unit cost found in the course of
the investigation.

6.4 Transactions among parties who are considered associated or who have
agreed a compensatory arrangement among themselves may be considered as
not being in the ordinary course of trade and not be taken into account
in determining normal value, unless it is proven that the related prices
and costs are comparable to those of operations among parties that are
not so related.

6.5 The costs that are treated in item II of this article, shall be
calculated based on the records kept by the exporter or by the producer
of the product being investigated, as long as such records are pursuant
to accepted accounting principles in the exporting country and reflect
the costs related to the production and sale of the product in question.

6.6 Available evidence shall be considered regarding appropriate
distribution of costs, including those furnished by the exporter or
producer in the course of the investigation procedures, as long as such
distribution has been traditionally used by the exporter or producer,
particularly when determining adequate periods of amortization and
depreciation and allowances resulting from capital expenses and other
development costs.

6.7 Adequate adjustment shall be made for those non‑recurring cost items
that benefit future and/or present production, or for circumstances in
which the costs observed in the course of the investigation period are
affected by start‑up operations, at least if they reflect on the
distribution mentioned in the preceding paragraph.

6.8 The adjustments made due to start‑up must reflect the costs verified
at the close of the start‑up period or, should such period extend beyond
that covered by the investigation, the most recent costs that can be
taken into account in the course of the investigation.

6.9 Calculation of the amount referred to in item II of this article,
shall be based on effective production and sales data of the like
product, done by the producer or exporter under investigation, during
the normal course of trade.

6.10 When calculation of the amount cannot be done based on data
mentioned in the preceding paragraph, it shall be done by means of:

\(a\) the actual amounts incurred and realized by the exporter or
producer in question, relative to production and sale of products of the
same category, in the domestic market of the exporting country;

\(b\) the weighted average of the actual amounts incurred and realized
by other exporters or producers under investigation, in relation to the
production and selling of the like product on the domestic market of the
exporting country;

\(c\) any other reasonable method, as long as the amount stipulated for
profit does not exceed the amount of profit normally made by other
exporters or producers from sales of products of the same general
category, in the domestic market of the exporting country.

Art. 7. When difficulties occur in determining a comparable price as in
the case of imports originating in a country that is not predominantly
oriented toward a market economy, where domestic prices are for the most
part established by the State, the normal value may be determined based
on the price charged or on the value determined for the like product in
a third country that has a market economy, or on the price charged by
the latter country for its exports to other countries, excluding Brazil,
or, whenever this is not possible, based on any other reasonable price,
including the price paid or to be paid for the like product in the
Brazilian market, duly adjusted, if necessary, to include a reasonable
margin of profit.

7.1 The choice of the third country with an adequate market economy
shall take into account any reliable information presented at the time
of selection.

7.2 The time frames of the investigation shall be taken into account
and, whenever feasible, recourse shall be had to a third country with a
market economy that is the object of the same investigation.

7.3 The interested parties shall be notified, immediately after the
initiation of the investigation, regarding the third country with a
market economy that is to be used, and a period of time shall be
established for returning the respective questionnaires mentioned in the
lead paragraph of Art. 27.

**Section II**

**Export Price**

Art. 8. The export price shall be the actual price paid or to be paid
for the product exported to Brazil, free of measures, discounts and
reductions actually granted and directly related to the sales under
consideration.

Sole paragraph. In cases where there is no export price or where this
appears unreliable, due to an association or compensatory arrangement
between the exporter and an importer or a third party, the export price
may be constructed using:

\(a\) he price for which imported products have been resold for the
first time to an independent buyer; or

\(b\) a reasonable basis, in the case of products that are not to be
resold to independent buyers, or not to be resold in the same condition
as when they were imported.

**Section III**

**Comparison Between Normal Value and Export Price**

Art. 9. A fair comparison shall be made between the export price and the
normal value, at the same level of trade, normally that of ex‑factory
level, in respect of sales made at as nearly as possible the same time.
The interested parties, as defined in paragraph 3 of Art. 21 shall be
notified regarding the type of information necessary for ensuring a fair
comparison, without requiring excessive burden of proof from them.

9.1 For purposes of adjustment in each case according to its specific
characteristics an examination shall be made of the differences that
affect price comparison, among them differences in the conditions and
terms of sale, taxation, levels of trade, quantities, physical
characteristics and any other differences that demonstrably affect price
comparability. When some of these factors overlap, duplication of
adjustments already made shall be avoided.

9.2 For the purpose of imposition of the sole paragraph of Art. 8,
adjustments shall also be admitted in function of costs incurred between
importation and resale, including import measures, other taxes and
profits accounted for.

9.3 In cases such as described in the preceding paragraph, if the
comparison is affected, the normal value shall be established on a trade
level equivalent to that of the constructed export price, or the
adjustments provided for in paragraph 1 of this article may be made.

9.4 The amount of the adjustment shall be calculated based on relevant
data corresponding to the period of investigation concerning the
existence of dumping, referred to in paragraph 1 of Art. 25, or on data
from the last available fiscal year.

9.5 In the event of a price comparison, as provided for in the lead
paragraph of this article, requiring currencies conversion, the rate of
exchange in effect on the day of sale will be used, except when there
occurs a sale in foreign currency in forward markets directly linked to
the export sale involved, and then the rate of exchange in the forward
sale shall be used.

9.6 In normal situations, the day of sale shall be the contract date,
the purchase order date or the date of confirmation of the order or of
the invoice, whichever establishes the material terms of sale.

9.7 Fluctuations in exchange rates shall be ignored and, for purposes of
investigation, a period of at least sixty days shall be considered
necessary for the exporters to adjust their export prices, in order to
reflect relevant alterations that have occurred during the period of the
dumping investigation.

Art. 10. In the case of a product not being imported directly from its
country of origin, but exported to Brazil from a third intermediary
country, the provisions of this Decree shall also be applied and the
price for which the product is sold to Brazil by the exporting country
shall be compared with the comparable price in the exporting country.

Sole paragraph. The comparison may be made with the price in the country
of origin, if:

\(a\) the product is merely transshipped through the exporting country;

\(b\) the product is not produced in the exporting country; or

\(c\) there is no comparable price for the product in the exporting
country.

**Section IV**

**Margin of Dumping**

Art. 11. The margin of dumping shall be the difference between the
normal value and the export price.

Art. 12. The existence of a margin of dumping shall be determined based
on a comparison between:

I. the weighted average normal value and the weighted average of the
prices of all comparable export transactions; or

II\. the normal value and the export prices on a
transaction‑to‑transaction basis.

12.1 A normal value, determined by means of a weighted average, can be
compared with the prices of specific export transactions in the case
where a pattern of prices is found for exports that differs
significantly among different purchasers, regions or time periods and if
an explanation is given for the reason that such differences cannot be
taken into account by the use of a weighted average‑to‑weighted average
or transaction‑to‑transaction comparison.

12.2 Sampling techniques may be used to determine the normal value and
the export prices, by using prices that appear with the most frequency
or that are the most representative, as long as they include a
significant amount of the transactions under examination.

Art. 13. Determining the individual margin of dumping for each one of
the known exporters or producers of the product under investigation
shall be the general rule.

13.1 In a case where the number of known exporters, producers and
importers or types of products being investigated is so large that it
becomes impractical to proceed with the determination cited in the
preceding paragraph, the investigation may limit itself to:

\(a\) a reasonable number of interested parties or products, by means of
valid statistical sampling based on information available at the time of
selection; or

\(b\) the largest percentage of the volume of exports from the country
in question, which can reasonably be investigated.

13.2 Any selection of exporters, producers, importers or types of
products that is made pursuant to the provision of the preceding
paragraph, shall go into effect after consultation with the exporters,
producers or importers, and their consent obtained, as long as the
necessary information has been provided for selecting the representative
sample.

13.3 Should any of the selected firms not furnish the requested
information, another selection shall be made. If there is not enough
time to make a new selection or if the new firms selected also fail to
provide the requested information, the determination or decision shall
be based on the best information available, pursuant to the provision of
Art. 66.

13.4 The individual margin of dumping shall also be determined for each
exporter or producer who has not been included in the selection, but who
provides the necessary information when this is being considered in the
course of the investigation process, with the exception of situations in
which the number of exporters or producers is so large that analysis of
individual cases implies a disproportionate burden and impedes
conclusion of the investigation within the designated time period.
Voluntary replies shall not be discouraged.

**Chapter III**

**DETERMINATION OF INJURY**

Art. 14. For the purposes of this Decree, the term "injury" shall be
understood as material injury or the threat of material injury to an
already established domestic industry or a material retardation in
establishing such an industry.

14.1 Determination of injury shall be based on positive evidence and
shall include an objective examination of:

\(a\) the volume of dumped imports;

\(b\) their effect on prices of the like product in Brazil; and

\(c\) the consequent impact of such imports on the domestic industry.

14.2 Regarding the volume of dumped imports, it shall be determined
whether this is significant and if there has been a substantial increase
in imports under such conditions, both in absolute terms or relative to
production or consumption in Brazil.

14.3 For purposes of the investigation, an negligible volume of imports,
coming from a certain country, is normally understood to be less than
three percent of Brazil´s imports of the like product, unless the
countries that, individually, provide less than 3% of Brazil´s imports
of the like product, collectively are responsible for more than 7% of
the product´s imports.

14.4 As to the effect that dumped imports have on prices, it shall be
taken into account whether there has been a significant price
undercutting for imported products at dumped prices in relation to the
price of the like product in Brazil, or whether such imports have had
the effect of significantly depressing prices or impeding in a relevant
way price increases which would have occurred in the absence of such
imports.

14.5 None of these factors alone, nor several of them together, shall
necessarily be considered as giving decisive guidance.

14.6 When imports of a product coming from more than one country are
simultaneously subject to investigation, the effects of such imports
shall be assessed cumulatively, if it is determined that:

\(a\) the margin of dumping established for each one of the countries is
more than the *de minimis* and that the volume of imports from each
country is not negligible; and

\(b\) the cumulative assessment of the effects of those imports is
appropriate in the light of the conditions of competition between
imported products and the conditions of competition between the imported
products and the like domestic product.

14.7 The margin of dumping shall be considered *de minimis* when,
expressed as a percentage of the export price, it is below 2%.

14.8 The examination of the impact that dumped imports have on the
domestic industry shall include an evaluation of all relevant economic
factors and indices having a bearing on the state of the industry,
including actual or potential decline in sales, profits, output, market
share, productivity, return on investments or utilization of capacity;
factors affecting domestic prices; the magnitude of the margin of
dumping; actual and potential negative effects on cash flow,
inventories, employment, wages, growth, ability to raise capital or
investments.

14.9 The list of factors in the preceding paragraph is not exhaustive,
nor can one or several of these factors necessarily give decisive
guidance.

Art 15. A causal link must be demonstrated between the dumped imports
and the injury to the domestic industry, based on an examination of:

I. relevant evidence; and

II\. other known factors, besides the dumped imports, that could be
causing injury to domestic industry at the same time, and such injuries,
caused by factors other than the dumped imports, must not be attributed
to those imports.

15.1 The relevant factors under these conditions include, *inter alia*,
the volume and prices of imports that are not sold at dumping prices,
the impact of the process of liberalization of imports on domestic
prices, contraction in demand or changes in consumer patterns, trade
restrictive practices by domestic and foreign producers, and competition
between them, developments in technology, and the export performance and
productivity of the domestic industry.

15.2 The effect of dumped imports shall be assessed in relation to the
domestic industry, when available data permit separate identification of
such production, based on criteria such as the productive process,
producers´ sales and profits.

15.3 If such separate identification of that production is not possible,
the effects of dumped imports shall be assessed by examination of the
production of the narrowest group or range of products, which includes
the like product, for which the necessary information can be provided.

Art 16. The determination of the existence of a threat of material
injury shall be based on facts and on a convincing reason, not merely on
allegation, conjecture or remote possibility. Change of the
circumstances that could bring about a situation in which dumping would
cause injury, must be clearly foreseen and imminent.

16.1 In making a determination regarding the existence of a threat of
material injury, consideration shall be given, *inter alia,* to the
following factors:

\(a\) a significant rate of increase of dumped imports, indicating the
likelihood of substantially increased importation;

\(b\) sufficient freely disposable, or an imminent, substantial increase
in capacity of the exporter indicating the likelihood of substantially
increased dumped exports to Brazil, taking into account the availability
of other export markets to absorb any additional exports;

\(c\) whether imports are entering at prices that will have a
significant depressing or suppressing effect on domestic prices, and
would likely increase demand for further imports, and;

\(d\) inventories of the product being investigated.

16.2 None of the factors in the preceding paragraph, by itself, will
give decisive guidance, but the totality of these factors must lead to
the conclusion that further dumped imports are imminent and that, unless
protective action is taken, material injury would occur.

**Chapter IV**

**DEFINITION OF DOMESTIC INDUSTRY**

Art. 17. For the purposes of this Decree, the term "domestic industry"
shall be interpreted as referring to the domestic producers as a whole
of the like products or to those of them whose collective output of the
products constitutes a major proportion of the total domestic production
of those products, except that:

I. when producers are related to the exporters or importers or are
themselves importers of the allegedly dumped product, the term "domestic
industry" may be interpreted as referring to the rest of the producers;

II\. in exceptional circumstances as defined in paragraph 4 of this
article, Brazil is divided into two or more competing markets, and then
the term "domestic industry" shall be interpreted as the group of
producers in one of those markets.

17.1 For the purposes of this article, producers shall be considered as
being related to the exporters or the importers only in the case where:

\(a\) one of them controls the other, directly or indirectly;

\(b\) both are controlled directly or indirectly by a third party;

\(c\) both control a third party directly or indirectly.

17.2 The cases cited in the preceding paragraph shall only be considered
if there are reasons to believe or suspect that these relationships may
lead the producer in question to act in a manner different from those
who are not part of such a relationship.

17.3 For purposes of this article, control is considered to exist when
the former is legally or operationally able to exercise restraint or
direction over the latter.

17.4 For purposes of imposing the provision of item II of this article,
producers in each market may be considered as a distinct domestic
industry, if:

\(a\) the producers within such a market sell all or almost all of their
production of the product in question in that market;

\(b\) the demand in that market is not to any substantial degree
supplied by producers of the product in question located elsewhere in
the territory.

17.5 In the case of paragraph 4 of this article, injury may be found to
exist, even when a major portion of domestic production is not being
injured, provided there is a concentration of dumped imports in that
market and these are causing injury to the producers of all or almost
all of the production of that market.

**Chapter V**

**THE INVESTIGATION**

**Section I**

**Application**

Art. 18. Except as provided for in art. 24, an investigation to
determine the existence, degree and effect of any alleged dumping shall
be requested by the domestic industry or on its behalf by means of an
application in writing, pursuant to the directions issued by SECEX.

18.1 The application cited in the lead paragraph must include evidence
of dumping, injury and of a causal link between the dumped imports and
the alleged injury, along with the following data:

\(a\) the identity of the applicant, and a description of the volume and
value of the corresponding production by the domestic industry. In a
case where the application is submitted on behalf of a domestic
industry, the application must indicate the name of the industry on
whose behalf it is being submitted and the name of the firms
represented, as well the volume and value of the corresponding
production;

\(b\) an estimate of the volume and value of national production of the
like product;

\(c\) a list of the known domestic producers of the like product that
are not represented in the application, and in so far as possible, an
indication of the volume and value of the domestic production of the
like product by such producers, as well as their opinion regarding
support of the application;

\(d\) a complete description of the allegedly dumped product, the names
of the respective country or countries of origin or export, the identity
of each known exporter or foreign producer and a list of the known
persons importing the product in question;

\(e\) a complete description of the product manufactured by the domestic
industry;

\(f\) information about the representative price being charged for the
product in question, when sold for consumption in the domestic market of
the exporting country or countries, or in cases provided for in Art. 6,
information about the representative sales price of the product by the
exporting country or countries to a third country or countries, or about
the constructed value of the product.

\(g\) information regarding the representative export price or, in cases
provided for in Art. 8, information about the representative sales price
of the product when sold for the first time to an independent buyer in
Brazil.

\(h\) information on the evolution of the volume of allegedly dumped
imports, the effect of these imports on prices of the like product on
the domestic market and the consequent impact of the imports on the
domestic industry, as demonstrated by relevant factors and indices
having a bearing on the state of that industry.

18.2 Should the application contain confidential information, the
provision of Art. 28 shall apply.

Art. 19. The application will undergo a preliminary examination in order
to verify if it is appropriate or if complementary information is
needed. The result of this examination shall be communicated to the
applicant within twenty days from the date of submission of the
application.

19.1 When complementary information is requested, a new examination
shall be made in order to verify if further information is required or
if the application is appropriate. The applicant shall be notified of
the result of this examination within twenty days from the date of
submission of the complementary information.

19.2 The applicant shall be notified if the application is appropriate
or if it has been judged inadequate within a period of twenty days from
the date of submission of new information.

19.3 The time period for attending to complementary information or new
information that has been requested shall be determined by SECEX,
according to the nature of the information, and the applicant shall be
so notified.

19.4 The applicant shall have ten days, from the date of issue of the
communication informing that the application is appropriate, to present
as many copies of the complete text of the application, including the
non‑confidential summary of the same, when such is the case, pursuant to
the terms of paragraph 1 of Art. 28, as there are known producers and
exporters and governments of the listed exporting countries.

19.5 In a case where the number of producers and exporters, cited in
paragraph 4, is particularly high, copies of the application may be
furnished only for submission to the governments of the listed exporting
countries and to the corresponding representative associations.

**Section II**

**Initiation of the Investigation**

Art. 20. Evidence of dumping and the injury caused by it shall be
considered simultaneously in the analysis to decide on initiation of the
investigation.

20.1 With a basis on information from other sources that are promptly
available, the appropriateness and adequacy of the evidence offered in
the application shall be examined, in order to determine the existence
of sufficient motives to justify the initiation of an investigation.

20.2 SECEX shall proceed to the examination of the level of support or
rejection of the application as shown by other national producers of the
like product, in order to verify whether the application was submitted
by domestic industry or on its behalf. In the case of a fragmented
industry that involves an especially large number of producers, support
or rejection may be confirmed by using valid statistical sampling
techniques.

20.3 An application shall be considered as being made "by domestic
industry or on its behalf" if it is supported by those producers whose
collective output constitutes more than 50% of the total production of
the like product produced by that portion of the domestic industry
expressing either support for or opposition to the application.

Art. 21. The applicant shall be notified of the decision, affirmative or
negative, regarding the initiation of an investigation, within thirty
days from the date of the issue of the communication stating that the
application is adequate.

21.1 The application shall be rejected and, consequently, the process
shall be terminated, when:

\(a\) there is not sufficient evidence of the existence of dumping or of
injury caused by the same, that would justify any investigation;

\(b\) the application was not submitted by the domestic industry nor on
its behalf; or

\(c\) the domestic producers supporting the application account for less
than 25% of the total production of the like product by the domestic
industry.

21.2. Should the decision be affirmative, the investigation shall be
initiated and a notice shall be published in the "Diario Oficial"
(Official Gazette) regarding such decision. The known involved parties
shall be notified and shall be granted a period of twenty days from the
date of publication of the decision for an application requesting the
qualifying of other parties that are considered as being interested,
with the respective indication of their legal representatives, pursuant
to the provision of relevant legislation.

21.3 For the purposes of this Decree the following are to be considered
as interested parties:

\(a\) domestic producers of the like product and the association that
represents them;

\(b\) importers or consignees of the goods under investigation and the
association that represents them;

\(c\) foreign exporters or producers of the product in question and the
associations that represent them;

\(d\) the government of the country exporting the product in question;

\(e\) other parties, either Brazilian or foreign, considered by SECEX to
be interested.

21.4 As soon as the investigation is initiated and without prejudice to
the right to confidentiality, the complete text of the application which
requested it shall be furnished to the known foreign producers and
exporters and to the authorities of the exporting country and must be
made available to other interested parties, if required. In a case where
the number of interested producers and exporters is especially large,
the complete text of the application shall be furnished only to the
authorities of the exporting country and to the corresponding
representative associations.

Art. 22. After initiating the investigation, SECEX shall notify the
Federal Revenue Secretariat of the Ministry of Finance, so that it may
take the appropriate steps which, should it be the case, will provide
for the imposition of definitive anti‑dumping measures on the imports
that are the object of the investigation, referred to in Art. 54.

Sole paragraph. The measures adopted by the Federal Revenue Secretariat,
pursuant to this article, shall not hinder the procedures of customs
clearance.

Art. 23. Prior to the decision to initiate an investigation, the
existence of the application requesting it shall not be made public
except in the case of the government of the exporting country concerned,
which must be notified of the existence of a duly qualified application.

Art. 24. Under exceptional circumstances, the Federal Government, *ex
oficio*, may initiate the investigation as long as there is sufficient
evidence of dumping, injury and a causal link between them which
justifies the initiation of an investigation.The government of the
country concerned shall be notified of the existence of such evidence,
before the initiation of the investigation.

**Section III**

**Conduction of the Investigation**

Art. 25. In the course of the investigation, the evidence of dumping and
injury caused by it, shall be examined simultaneously.

25.1 The period of investigation for ascertaining the existence of
dumping must include the twelve previous months as close as possible to
the initiation of the investigation, and, under exceptional
circumstances, may be less than twelve months but never less than six.

25.2 The period of investigation regarding the existence of injury must
be sufficiently representative to permit analysis as provided for in
Chapter III, may not be less than three years, and shall necessarily
include the period during which dumping is investigated.

**Subsection I**

**Evidence**

Art. 26. All interested parties in an anti‑dumping investigation shall
be given notice of the information required and shall have ample
opportunity to submit, in writing, all evidence that they consider
relevant in respect of the investigation in question.

Sole paragraph. Due consideration shall be given to any difficulties
encountered by the interested parties, especially small enterprises, in
providing requested information, and any possible assistance shall be
given them.

Art. 27. All interested parties, except the governments of the exporting
countries, shall receive questionnaires for purposes of the
investigation and shall have forty days within which to return them.
This period shall be counted from the date the questionnaires are
issued.

27.1 Any requests for an extension of the forty‑day period shall be duly
considered and if its necessity is demonstrated, such extension may be
authorized whenever practicable for a period of up to thirty days,
taking into account the time periods of the investigation.

27.2 Additional or complementary information may be requested or
accepted in writing throughout an investigation. The time period for
providing requested information shall be stipulated based on the nature
of the information and may be extended when a duly justified request is
made. The time periods for the investigation itself must be taken into
account both for information that is requested and for consideration of
such additional information submitted.

27.3 Should any of the interested parties deny access to necessary
information, not providing it on time or creating obstacles to the
investigation, the findings related to preliminary or final decisions
shall be composed based on the best information available, pursuant to
the provision of Art. 66.

Art. 28. Information which is confidential by nature or which has been
provided as being confidential by the parties in the investigation shall
be treated as such, upon good cause shown, and shall not be disclosed
without the specific permission of the party which has provided it.

28.1 The interested parties who provide confidential information must
submit a non‑confidential summary thereof, which permits a reasonable
understanding of the information provided. In cases where it is
impossible to provide a summary, the parties shall justify this in
writing.

28.2 Should it happen that the information labelled confidential is not
justified as such, and if the provider of the information is unwilling
to make it public in its totality or in summary form, such information
cannot be considered, unless it is demonstrated in a convincing manner
and from reliable sources that such information is correct.

Art. 29. The industrial users of the product under investigation and
representatives of consumers organizations, if the product is habitually
sold on the retail market, shall have the opportunity to provide
information which is relevant to the investigation.

Art. 30. In the course of the investigation, the accuracy of the
information provided by the interested parties will be verified.

30.1 Should it become necessary and if feasible, investigations may be
carried out in the territory of other countries as long as authorization
is granted by the firms involved, and the representatives of the
government of the country in question are notified and these have no
objection to the investigation. The procedures described in Art. 65
shall apply to investigations undertaken in the territory of another
country.

30.2 If it is necessary and feasible, investigations may be made in
interested firms located in Brazil, as long as they have been previously
authorized by such firms.

30.3 Subject to the requirement to protect confidential information, the
results of investigations conducted pursuant to the preceding paragraphs
shall be attached to the process.

**Subsection II**

**Defence of the Interests of the Parties**

Art. 31. In the course of the investigation, the interested parties
shall have full opportunity to defend their interests. To this end, when
requested, within the time period indicated in the directive ordering
the initiation of the investigation, meetings shall be held where an
opportunity shall be given to the interested parties to meet with those
who have adverse interests, so that opposing views may be presented and
rebuttal arguments offered.

31.1 The party requesting the meeting must submit, together with the
application, a list of the specific points to be considered.

31.2 The known interested parties shall be notified, with at least
thirty days notice, of the meeting and the points to be considered
during the meeting.

31.3 There shall be no obligation to attend a meeting and the absence of
any party shall not be prejudicial to its interests.

31.4 The interested parties must indicate their legal representatives
who shall attend the meeting, at least five days before the meeting,
and, up to ten days prior to the meeting, the arguments to be presented
therein. The interested parties, if duly justified, may present
additional information orally.

31.5 Information that is presented orally shall be considered only if it
is reproduced in writing and made available to the other interested
parties, within ten days following the meeting.

31.6 When such is the case, consideration shall be given to the need for
preserving confidentiality and the convenience of the parties.

31.7 The holding of meetings shall not hinder SECEX from reaching a
preliminary or final determination.

Art. 32. The interested parties may request, in writing, to examine the
information contained in the process, which shall be promptly made
available to the parties who have so requested, with the exception of
confidential information and internal government documents. An
opportunity shall be given so that these parties may defend their
interests in writing based on such information.

**Subsection III**

**Final Procedures Concerning the Conduction of the Investigation**

Art. 33. Before completing the findings regarding the final
determination, a meeting shall be called by SECEX, wherein the
interested parties shall be notified regarding the essential facts under
examination that are the basis of the findings, and allowing the
interested parties a period of 15 days from the meeting to submit
comments.

33.1 The National Confederation of Agriculture (CNA), the National
Confederation of Industry (CNI), the National Trade Confederation (CNC)
and the Brazilian Exporters Association (AEB) shall also be notified
regarding the essential facts under examination that form the basis for
the SECEX findings.

33.2 When the period provided for in the lead paragraph is over, the
investigating process shall be considered as closed and information
received later shall not be considered for purposes of the final
decision.

33.3 The provisions of paragraphs 3, 4, 5 and 6 of Art. 31 also apply to
this article.

**Section IV**

**Provisional Anti‑dumping Measures**

Art. 34. Provisional anti‑dumping measures may be applied only if:

I. an investigation has been initiated in accordance with the provision
of Section II of Chapter V, a public notice of the decision to initiate
an investigation has been published and the interested parties have been
given adequate opportunity to submit information and make comments;

II\. a preliminary affirmative determination has been made of dumping
and consequent injury to a domestic industry;

III\. the authorities cited in Art. 2 judge such measures necessary to
prevent injury being caused during the investigation, and;

IV\. at least sixty days have passed since the date of the initiation of
the investigation.

34.1 The amount of the provisional anti‑dumping measure may not

exceed the margin of dumping.

34.2 Provisional anti‑dumping measures shall take the form of a
provisional duty or security, the amount of which shall be equivalent to
that of the anti‑dumping duty that is provisionally established.

34.3 In the case of the provisional duty, this shall be collected and in
the case of the security this shall be paid by means of a deposit or
bank bond, together with the term of responsibility.

34.4 The requirement of provisional measures may remain suspended until
the final decision, as long as the importer offers an equivalent bond
equal to the total amount of the obligation.

34.5 The interested parties shall be notified of the decision to impose
provisional anti‑dumping measures, the act that contains the decision
shall be published in the "Diario Oficial".

34.6 The Federal Revenue Secretariat shall make provisions regarding the
form for payment of the bond cited in paragraph 2.

34.7 The release by customs of goods subject to provisional anti‑dumping
measures shall depend on payment of the duty or of the bond.

34.8 The provisional anti‑dumping measures shall remain in effect for a
period of not more than four months, except in cases where, by decision
of the authorities cited in art. 2 and by request of the exporters that
represent a significant share of the trade in question, it may be
extended to six months. The exporters desiring an extension of the
period of imposition of the provisional anti‑dumping measures shall
request such in writing, within thirty days prior to the end of the
period that the measure is in effect.

34.9 Should it be decided in the course of the investigation that a
provisional anti‑dumping measure of less than the margin of dumping is
sufficient to eliminate the injury, the periods provided for in the
preceding paragraph shall be for six and nine months respectively.

**Section V**

**Price Undertakings**

Art. 35. Proceedings of the investigation and imposition of provisional
or definitive anti‑dumping measures may be suspended, if the exporter
voluntarily assumes satisfactory undertakings to revise prices or to
cease exports to Brazil at dumped prices, as long as the authorities
cited in Art. 2 are convinced that said undertaking eliminates the
injury resulting from dumping.

35.1 A price increase to fulfil these undertakings shall not be more
than what is necessary to eliminate the margin of dumping, and may be
limited to what is necessary to terminate the injury being caused to the
domestic industry.

35.2 The exporters shall propose price undertakings or accept those
proposed by SECEX only after there has been a preliminary determination
that there is a case of dumping and the injury caused by it.

35.3 The exporters shall not be obliged to propose price undertakings
nor forced to accept those offered. These facts shall not prejudice
consideration of the case nor alter the preliminary findings which shall
have been concluded.

35.4 SECEX has the right to refuse price undertaking offers if such
acceptance is considered to be ineffective.

35.5 In the case of a refusal, and if it be possible, reasons shall be
given to the exporter explaining why acceptance of the undertaking has
been judged inappropriate, and the exporter shall be given the
opportunity to respond.

Art. 36. After a price undertaking has been accepted the act containing
the decision to approve such undertaking shall be published in the
"Diario Oficial" and, depending on the case, shall contain the decision
to continue or to suspend the investigation, and the interested parties
shall be notified.

Sole paragraph. The investigation of dumping and injury must continue if
the exporter so desires, or if the authorities cited in Art. 2 so
decide.

Art. 37. The exporter with whom a price undertaking is agreed upon must
periodically submit, if so requested, information relative to the
fulfilment of the undertaking and shall permit verification of any
relevant data.

Sole paragraph. Non‑fulfilment of the provision of this article shall be
considered as a violation of the undertaking.

Art. 38. In the case of an undertaking violation, without continuing the
investigation, steps may be taken for immediate imposition by the
authorities cited in art. 2 of provisional anti‑dumping measures, based
on the best information available, and the investigation shall
recommence.

Sole paragraph. The interested parties shall be notified concerning the
termination of the undertaking and the provisional anti‑dumping measures
being imposed. The act containing this decision shall be published in
the "Diario Oficial".

**Section VI**

**Conclusion of the Investigation**

Art. 39. The investigations shall be concluded within one year from
their initiation, except under exceptional circumstances when the time
period may be up to eighteen months.

Art. 40. The applicant may, at any time, request the termination of the
process. If approved, the investigation shall be closed. Should SECEX
decide to continue the investigation, the applicant shall be notified in
writing.

Art. 41. The investigation shall be terminated without imposition of
anti‑dumping measures in cases where:

I. there has not been sufficient evidence of the existence of dumping or
of any resulting injury;

II\. the margin of dumping is *de minimis*, according to the provision
of paragraph 7 of Art. 14; or

III\. the volume of actual or potential dumped imports, or the injury
caused are negligible, according to the provision of paragraph 3 of Art.
14.

Art. 42. The investigation shall be closed with the imposition of
measures, when SECEX reaches a final determination on the existence of
dumping, of injury and of the causal link between them.

Sole paragraph. The amount of the anti‑dumping duty shall not exceed the
margin of dumping.

Art. 43. In a case where a price undertaking has been accepted, with
subsequent continuance of the investigation:

I. if SECEX arrives at a negative conclusion concerning dumping or any
resulting injury, the investigation shall be closed and the undertaking
automatically terminated, except when the negative conclusion results,
in large part, from the very existence of the price undertaking, a case
where it may be required to be maintained for a reasonable period of
time, pursuant to the provisions of this Decree;

II\. if the authorities cited in art. 2, based on findings by SECEX,
conclude that there has been dumping and resulting injury, the
investigation shall be closed and the imposition of the definitive duty
shall be suspended while the undertaking is in effect under the terms to
be established and pursuant to the provisions of this Decree;

43.1 For the purposes of this article, the provision of Art. 37 applies.

43.2 In the case of undertaking violation, steps may be taken for the
immediate imposition, by the authorities cited in Art. 2, of
anti‑dumping measures, based on the findings of the investigation.

43.3 The interested parties shall be notified about the termination of
the undertaking and about the anti‑dumping duty imposed. The act
containing this decision shall be published in the "Diario Oficial".

Art. 44. The act containing the decision to end the investigation in
cases provided for in this Section shall be published in the Diario
Oficial. Interested parties shall also be notified.

Sole Paragraph. In the case of a decision to conclude the investigation
with the imposition of anti‑dumping measures, the act that contains such
a decision must name the supplier or suppliers in question, with the
measures corresponding to each. In the case of the number of suppliers
being especially high, the findings shall contain the name of the
supplier countries involved, with the respective measures.

**Chapter VI**

**IMPOSITION AND COLLECTION OF ANTI‑DUMPING MEASURES**

**Section I**

**Imposition**

Art. 45. For the purposes of this Decree, the expression "anti‑dumping
duty" signifies an amount of money equal to or less than the margin of
dumping, calculated and imposed pursuant to this article, for the
exclusive purpose of neutralizing the injurious effects of dumped
imports.

45.1 The anti‑dumping measure shall be calculated by imposing *ad
valorem* or specific duties, either fixed or variable, or a combination
of both.

45.2 The *ad valorem* duty shall be imposed on the customs value of the
merchandise, on a CIF basis, judged in terms of the relevant
legislation.

45.3 The specific duty shall be set in United States dollars and
converted to Brazilian currency, under the terms of the relevant
legislation.

Art. 46. Anti‑dumping measures imposed on imports originating with known
exporters or producers, that have not been included in the selection
treated in Art. 13, but who have submitted the information requested,
may not exceed the weighted average of the margin of dumping established
for the group of exporters or producers selected.

46.1 For purposes of this article, zero or *de minimis* margins shall
not be taken into account, nor the margins established under
circumstances as mentioned in paragraph 3 of Art. 27.

46.2 The authorities cited in art. 2 shall impose an individually
calculated duty on imports originating from any exporter or producer not
included in the selection, who has submitted the information requested
in the course of the investigation, as provided for in paragraph 4 of
Art. 13.

Art. 47 To impose the provision of item II of art. 17, anti‑dumping
measures shall be due only on the products in question that are destined
for final consumption in that market that has been considered a distinct
domestic industry, for purposes of the investigation, pursuant to the
terms of paragraph 4 of Art. 17.

**Section II**

**Charges**

Art. 48. When an anti‑dumping duty is imposed on a product, this shall
be collected independently of any obligations of a fiscal nature
relative to its importation, in amounts that are adequate for each case,
without discrimination, on all imports of the product that have been
judged as being made at dumping prices and which are injurious to
domestic industry, whatever their origin.

Sole paragraph. Measures shall not be charged on those imports
proceeding from exporters with whom price undertakings have been agreed
upon.

**Section III**

**Products Subject to Provisional and Definitive Anti‑dumping Measures**

Art. 49. Except in cases provided for in this Section, provisional
anti‑dumping measures and anti‑dumping measures shall be imposed only on
imported products that have been shipped for consumption after the date
of the publication of the directive that contains the decisions cited in
Arts. 34 and 42.

Art. 50. If the final decision is that dumping or its resulting injury
does not exist, the amount of the provisional anti‑dumping measures
shall be returned if it has been collected, or if secured by a deposit
it shall be returned, or in the case of a bank bond, this shall be
cancelled.

Art. 51. If the final decision points to the existence of a threat of
material injury or significant retardation in establishing an industry,
without any material injury having occurred, the value of the
provisional anti‑dumping measures, if they have been collected, shall be
returned, or if secured by a deposit, this shall be returned, or in the
case of a bank bond this shall be cancelled, unless it is verified that
the dumped imports, in the absence of provisional anti‑dumping measures,
would have led to the verification of material injury, in which case the
provisions in the following articles shall apply.

Art. 52. Should the final determination point to the existence of
dumping and its resulting injury, the following shall be observed:

I. when the amount of the duty imposed by the final determination is
less than the amount that has been provisionally collected or secured by
a deposit, the excess amount shall be respectively returned or
reimbursed;

II\. when the amount of the duty imposed by the final decision is more
than the amount that has been provisionally collected or secured by a
deposit, the payment of the difference shall not be required;

III\. when the amount of the duty imposed by the final decision is equal
to the amount that has been provisionally collected or secured by a
deposit, these amounts shall be automatically converted into a
definitive duty.

Art. 53. In a case where the final determination is that dumping and
resulting injury do exist, and when the amount of the duty imposed by
the final decision, in the case of a guarantee by bank bond, is more
than or equal to the amount that has been provisionally established, the
amount corresponding to the secured amount will be collected
immediately. When this amount is less than that of the provisional
measure, only the amount equivalent to that established by the final
decision shall be collected.

Sole paragraph. The collection of the amounts cited in the lead
paragraph will cause the consequent extinction of the bank bond. In a
case of non‑payment, the bank bond shall be automatically executed,
independently of any judicial or extra‑judicial notice, under the terms
of the relevant legislation.

Art. 54. Definitive anti‑dumping measures may be charged on dumped
imports which were entered for consumption up to ninety days before the
imposition of the provisional anti‑dumping measures, whenever it is
found that, with regard to the product in question:

I. there is a history of dumping causing injury, or that the importer
was aware or should have been aware that the producer or exporter
practices dumping and that this would cause injury; and

II\. the injury is caused by massive dumped imports of a product in a
relatively short time, which, taking into account the period of time in
which they occur and the volume of the dumped imports and also the rapid
build‑up of inventories of the imported product, is likely to seriously
undermine the remedial effect of the definitive anti‑dumping measures,
as long as the importers involved are given the opportunity to comment;

Sole paragraph. Measures shall not be imposed on products that have been
shipped for consumption prior to the date of the initiation of the
investigation.

Art. 55. In the case of a price undertaking violation, definitive
anti‑dumping measures may be charged on imported products that have
entered for consumption, up to ninety days prior to the imposition of
the provisional anti‑dumping measures, as seen in Art. 38, excepting
those that had been shipped before the undertaking violation.

**Chapter VII**

**DURATION AND REViEW OF ANTI‑DUMPING MEASURES AND**

**PRICE UNDERTAKINGS**

Art. 56. Anti‑dumping measures and price undertakings shall only remain
in force as long as there is a need to counteract dumping which causes
injury.

Art. 57. Every definitive anti‑dumping duty shall be terminated not
later than five years after its imposition, or five years from the date
of the conclusion of the most recent review that concerned dumping and
injury.

57.1 The time period for imposition that is treated in the lead
paragraph of this article may be extended by means of a substantiated
request submitted by the domestic industry or on its behalf, by agencies
or organs of the Federal Public Administration, or by SECEX, as long as
it has been demonstrated that the expiry of the measures would very
likely lead to a continuation or recurrence of dumping and injury.

57.2 The interested parties shall have a period of five months prior to
the end of the enforcement period treated in the lead paragraph in order
to respond in writing concerning the suitability of a review and to
request a meeting if necessary.

57.3 The review shall proceed pursuant to the provision in Section III
of Chapter V and must be concluded within twelve months from the date of
its initiation. The acts which contain the decision to initiate and
terminate a review shall be published in the "Diario Oficial" and the
interested parties shall be notified.

57.4 The measures shall remain in effect throughout the review.

57.5 The provision in this article applies to price undertakings
accepted pursuant to Art. 35.

Art. 58 There shall be a review, in whole or in part, of the decisions
regarding the imposition of anti‑dumping measures at the request of the
interested party or by an organ or agency of the Federal Public
Administration, or SECEX, as long as at least one year has passed since
the imposing of the definitive anti‑dumping measures and sufficient
evidence is presented showing that:

I. the imposition of a duty has ceased to be necessary to neutralize
dumping;

II\. it would be improbable that the injury would subsist or recur if
the duty were revoked or altered;

III\. the actual duty is not or has ceased to be sufficient for
neutralizing the dumping which is causing injury.

58.1 In exceptional cases of substantial changes of circumstance, or
when in the national interest, reviews may be made at a shorter interval
when requested by the interested party or organs or agencies of the
Federal Public Administration, or by the investigating agency .

58\. 2 If there are elements that justify the review, it shall be
initiated and the act containing the findings shall be published in the
"Diario Oficial" and the interested parties will be notified.

58.3 The review must be concluded within a period of twelve months from
its initiation and shall adhere to the provision in Section III of
Chapter V.

58.4 As long as the review has not been concluded, the measures shall
not be altered and shall remain in effect until the end of the review.

58.5 The authorities cited in Art. 2, basing themselves on the result
and in conformity with the evidence gathered during the course of the
review, may eliminate, maintain or alter the anti‑dumping duty. Should
it happen that the duty in effect is higher than necessary for
neutralizing the injury to domestic industry and is no longer justified,
due restitution shall be made.

58.6 The act that contains the decision to terminate the review shall be
published in the "Diario Oficial" and the interested parties will be
notified.

58.7 The provision of this article applies to price undertakings
accepted pursuant to Art. 35.

Art. 59 When a product is subject to anti‑dumping measures, an immediate
summary review shall be held, if so requested, in order to quickly
determine the individual margin of dumping for any exporters or
producers of the exporting country in question, who have not exported
the product to Brazil in the course of the investigation period, as long
as these exporters or producers can demonstrate that they have no
relationship with the exporters or producers of the exporting country
who are subject to anti‑dumping measures imposed on their product.

59.1 During the summary review, anti‑dumping measures shall not be
charged on imports originating from the exporters or producers cited in
the lead paragraph of this article.

59.2 Once the review has started, SECEX shall notify the Federal Revenue
Secretariat so that it may take the necessary steps, should a case of
dumping be determined, to charge anti‑dumping measures on imports
originating from the producers or exporters in question, starting with
the date on which the summary review is initiated.

Art. 60. Anti‑dumping measures may be suspended for a period of one
year, which can be extended for a further year, should provisional
alterations occur in market conditions, and as long as the injury does
not recur or subsist in virtue of the suspension and the domestic
industry is consulted.

Sole paragraph. Measures may be reimposed at any time if the suspension
is no longer justified.

**Chapter VIII**

**PUBLIC NOTICE AND EXPLANATION OF DETERMINATIONS**

Art. 61. The act resulting from the decisions of the authorities cited
in Art. 2, and the act by SECEX, shall be published in the "Diario
Oficial" and shall contain detailed information regarding the
conclusions reached for each issue of fact and law considered to be
relevant.

Sole paragraph. For the purpose of notification, a copy of the
directives mentioned in the lead paragraph of this article shall be sent
to the government of the exporting country or countries of the products
that have been under investigation and also to the other interested
parties.

**Chapter IX**

**ANTI‑DUMPING ACTIONS ON BEHALF OF A THIRD COUNTRY**

Art. 62 Third countries may apply for the imposition of anti‑dumping
measures through their own authorities.

62.1 Such an application must contain price information to show that the
imports are being dumped and to show that the alleged dumping is causing
injury to the domestic industry of that country.

62.2 Analysis of the application shall consider the effects of the
alleged dumping on the industry concerned as a whole in the third
country. The injury shall not be assessed in relation only to the effect
of the alleged dumping on the industry´s exports to Brazil, or even on
the total exports of the product.

62.3 In order to initiate an investigation, the Brazilian government
shall request approval from the Council for Trade in Goods of the World
Trade Organization.

**Chapter X**

**THE FORM OF PROCEDURAL ACTS AND TERMS**

Art. 63. Procedural acts and terms do not depend on any special format,
but the interested parties must observe the instructions of this Decree
and of SECEX when preparing petitions and documents in general;
otherwise they shall not be appended to the process.

63.1 Observance shall be required only of instructions that have become
public prior to the beginning of the proceedings, or that shall have
been specified in the communication to the party involved.

63.2 Procedural acts and terms shall be written and the meetings must be
in the Portuguese language, with documents written in another language
being submitted in translations done by an official translator.

63.3 Procedural acts are public and the right to consult the official
records and to request a certificate regarding the progress of the
investigation is restricted to the parties and their legally appointed
representatives, pursuant to the provision of art. 32 regarding
confidentiality of the information and of internal government documents.

63.4 Applications for the certificate shall only be accepted 30 days
after the initiation of the investigation or from the submission of the
last application for a certificate by the same party.

**Chapter XI**

**THE DECISION‑MAKING PROCESS**

Art 64. The act or decisions, either preliminary or final, relating to
the investigation, shall be adopted pursuant to a directive from SECEX.

64.1 Within a twenty‑day period from the time it receives the findings
from the Secretary of Foreign Trade, SECEX shall publish the act
containing the decision to initiate an investigation, to extend the time
of an investigation, to file the process at the request of the
applicant, to initiate a review process concerning definitive measures
or price undertakings, or to terminate the investigation without
imposing any measures.

64.2 Within tens days from the date of reception of the findings by the
Minister of State for Industry, Trade and Tourism and the Minister of
State for Finance, acts shall be published which contain the decision to
impose provisional anti‑dumping measures, extension of the measures,
acceptance of the end of price undertakings, termination of the
investigation with imposition of measures, suspension of a definitive
duty, or the result of the review of definitive measures or price
undertakings.

64.3 Under exceptional circumstances, even when there is evidence of
dumping and of the resulting injury, the authorities cited in Art. 2 may
decide, for reasons of national interest, in favour of suspending the
imposition of measures or for the non‑approval of price undertakings, or
even, in accordance with the provision of the sole paragraph of Art. 42,
in favour of the imposition of measures at an amount different than the
one recommended and, in such a case, the act shall contain the reasons
for such a decision.

**TITLE II**

**SPECIAL PROCEDURES**

**Chapter I**

**ON‑THE‑SPOT INVESTIGATIONS**

Art. 65 Upon initiation of an investigation, the authorities of the
exporting country and the firms known to be concerned should be notified
of the intention to carry out on‑the‑spot investigations.

65.1 In exceptional circumstances, when it is intended to include
non‑governmental experts in the investigating team, the firms and the
authorities of the exporting country should be so notified, and these
experts shall be subject to sanctions as provided for in Art. 325 of the
Brazilian Penal Code, in the case of breach of confidentiality.

65.2 Explicit agreement must be previously obtained from the firms
involved in the exporting country, prior to such a visit.

65.3 When the approval mentioned in the preceding paragraph has been
received, the authorities of the exporting country shall be immediately
notified, by means of a "note verbale", of the names and addresses of
the firms that are to be visited, as well as the dates scheduled for
such visits.

65.4 Sufficient advance notice shall be given to the firms in question
before the visits are made.

65.5 Visits to explain the questionnaire, which is treated in the lead
paragraph of Art. 27, may be made only at the request of the producer or
exporting firm and may take place only if SECEX notifies the
representatives of the country in question and there is no objection to
the visit.

65.6 The visit shall be made after the questionnaire has been returned,
unless the firm agrees otherwise and the government of the exporting
country is notified of the anticipated visit and has no objection.

65.7 Prior to the visit, the firms involved shall be notified regarding
the general nature of the information being sought, and, during the
visit, may request supplementary clarifications due to the information
received.

65.8 Replies to requests for information or to questions that are put by
authorities or firms of the exporting country, that are essential to a
successful on‑the‑spot investigation should, whenever possible, be
answered before the visit is made.

**Chapter II**

**BEST INFORMATION AVAILABLE**

Art. 66. As soon as the investigation is initiated, the information
required shall be specified in detail to the interested parties and the
manner in which that information should be structured by the interested
party in its response, as well as the time periods for submitting it.

66.1 The party shall be advised that if the information is not submitted
within the specified period of time, it will imply that determinations
will be made based on the facts available, including those contained in
the request for initiating the investigation.

66.2 When the determinations are made, verifiable information shall be
taken into account that has been appropriately presented and which,
therefore, may be used in the investigation without any difficulty and
which has been presented in good time.

66.3 Should SECEX not accept some information, the reason for the
refusal shall be communicated immediately to the party so that the
latter may provide new explanations within the established time periods,
respecting the time limits of the investigation. Should the explanations
be unsatisfactory, the reasons for refusal must appear in the published
acts that contain any decision or determination.

66.4 Should an interested party not furnish requested information or
furnish it only partially and this relevant information is not brought
to the attention of the investigating authorities, the result may be
less favourable to that party than if it had cooperated.

66.5 Should information from secondary sources be used in elaborating
the determinations, including that submitted in the application, an
attempt shall be made to compare the information with information from
independent sources or with those originating with other interested
parties.

66.6 SECEX may request that an interested party submit its replies in
computer language.

66.7 If the interested party does not use computerized accounting or if
the submission of the reply in this manner would mean an additional
burden with an unjustified increase in costs and difficulties, that
party shall be dispensed from presenting its reply pursuant to the
previous paragraph.

66.8 Whenever SECEX does not have the specific means for processing the
information, having received it in computer language incompatible with
its operating system, the information must be submitted in the form of a
written document.

**Chapter III**

**GENERAL PROVISIONS**

Art. 67. The time periods provided for in this Decree shall be counted
continuously.

Art. 68. The time periods in this Decree may be extended once and for an
equal period of time, except those for which extension is already
provided for.

Art. 69. Acts practised contrary to the provisions of this Decree shall
be considered null and void under the law.

Art. 70. The procedures established by this Decree shall not impede the
competent authorities from acting promptly regarding any decisions or
determinations, nor shall they hinder the procedures of customs
clearance.

Art. 71. For the purposes of this Decree, the term "industry" also
includes activities connected with agriculture.

Art. 72. The Minister of State for Industry, Trade and Tourism and the
Minister of State for Finance shall pass complementary norms for
executing this Decree.

Art. 73. This Decree takes effect on the date of its publication.

Brasília, 23 August 1995; 174th year of Independence and 107th year of
the Republic.

FERNANDO HENRIQUE CARDOSO

*Luiz Felipe Lampreia*

*Pedro Malan*

*Dorothea Werneck*

*José Eduardo de Andrade Vieira*

*José Serra*