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

**G/SCM/N/1/BRA/1**

[Organization]{.smallcaps} 5 April 1995

(95-0830)

Original: English

**Committee on Anti-Dumping Practices**

**Committee on Subsidies and Countervailing Measures**

[NOTIFICATION OF LAWS AND REGULATIONS]{.underline}

[UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS]{.underline}

[BRAZIL]{.underline}

The following communication, dated 15 March 1995, has been received from
the Permanent Mission of Brazil.

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

With reference to documents G/ADP/N/1/Suppl.1, dated 6 March 1995 and
G/SCM/N/1, dated 30 January 1995 and to Articles 16.5 and 18.5 of the
WTO Agreement on Implementation of Article VI of the General Agreement
on Tariffs and Trade 1994 and Articles 25.12 and 32.6 of the WTO
Agreement on Subsidies and Countervailing Measures, I have been
instructed to notify the Committees on Anti-Dumping Practices and on
Subsidies and Countervailing Measures that:

\(a\) the Marrakesh Agreement Establishing the World Trade Organization
and its Annexed Agreements, contained in the Final Act Embodying the
Results of the Uruguay Round Multilateral Trade Negotiations, have been
incorporated into the Brazilian legal system, in their full text, by
Decree No. 1355, of 30 December 1994;

\(b\) Provisional Measure No. 616, of 14 September 1994[^1] has been
amended so as to reflect the incorporation of the above referred
Agreements into the Brazilian legal system, and has been republished as
Provisional Measure No. 926 of 1 March 1995 (English version enclosed
herewith); and

\(c\) the Government of Brazil is presently drafting a new regulation on
measures to avoid the effects of unfair trade practices, in accordance
with the provisions of the above referred Agreements; this new
regulation, when in force, will be duly notified to the Committee.

(UNOFFICIAL TRANSLATION)

**Provisional Measure No. 926 of 1 March 1995**

Regulates the Application of duties established in the Agreement on

Anti-Dumping and in the Agreement on Subsidies and

Countervailing Measures and establishes other provisions

The **Vice-President of the Republic**, acting as the **President of the
Republic**, pursuant to the attributions conferred to him by Article 62
of the Constitution, adopts this Provisional Measure, which will have
the force of law:

Article 1: The anti-dumping and countervailing measures, either
provisional or definitive, as established by the Anti-Dumping
Agreement[^2] and by the Subsidies and Countervailing Measures
Agreement[^3], approved by Legislative Decree No. 22, of 5 December
1986, and promulgated by Decrees No. 93.941, of 16 January 1987, and
No. 93.962, of 22 January 1987, based upon commitments assumed under the
General Agreement on Tariffs and Trade - GATT, adopted by Law No. 313,
of 30 July 1948, and the Agreement on Implementation of Article VI of
the General Agreement on Tariffs and Trade 1994 and the Agreement on
Subsidies and Countervailing Measures annexed to the Agreement
Establishing the World Trade Organization, which is part of the Final
Act Embodying the Results of the Uruguay Round of Multilateral Trade
Negotiations of the GATT, signed in Marrakesh on 12 April 1994, approved
by Legislative Decree No. 30, of 15 December 1994 and promulgated by
Decree No. 1355 of 30 December 1994, shall be applied by the levying, in
Brazilian currency, of sums which correspond to the percentage of the
margin of dumping or to the amount of subsidy, as determined in an
administrative process, in accordance with the terms of those
Agreements, of Decisions PC/13, PC/14, PC/15 and PC/16 of the
Preparatory Committee of the WTO and of the GATT CONTRACTING PARTIES,
dated 13 December 1994, and of this Provisional Measure, in sufficient
amounts so as to prevent injury or threat thereof to the domestic
industry.

Sole paragraph. Anti-dumping and countervailing duties will be charged
independently of any other obligations of fiscal nature in relation to
the products concerned.

Article 2: Provisional duties may be applied during the investigation
period when, from a preliminary analysis, evidence is found that dumping
is occurring or that subsidies are being granted, which are causing
injury or threat thereof to the domestic industry, and it is deemed
necessary to prevent such injury or threat of injury during the course
of the investigation.

Sole paragraph. The term \"domestic industry\" used herein should be
construed in accordance with the definition contained in the Agreements
on Anti-dumping and Agreements on Subsidies and Countervailing Measures
referred to in Article 1, and should be understood as referring to
companies that produce industrial, agricultural or mineral products.

Article 3: The requirement that provisional duties be paid may be
suspended until the final decision of the process, at the discretion of
the authorities referred to in Article 6 of this Measure, as long as the
importer offers a guarantee equivalent to the total value of the
obligation and other legal charges, which will consist of:

I deposit in money, or

II bank guarantee.

1\. The guarantee must ensure, in all cases, the same level of
correction for inflation used for the purposes of federal taxes,
including interest, starting from the date provisional duties were
imposed.

2\. The Federal Tax Department (\"SRF\") of the Ministry of Finance will
specify the form in which the guarantee referred to in this article will
be given or released.

3\. The release from customs of goods which are the object of imposition
of provisional duties will depend on the provision of the guarantees
referred to in this article.

Article 4: An undertaking to eliminate the injury effect of dumping or
subsidies may be entered into with the exporter or with the government
of the exporter\'s country.

1\. The undertaking referred to in this Article will be made before the
Secretary for Foreign Trade (\"SECEX\") of the Ministry of Industry,
Trade and Tourism and will be submitted to the approval of the
authorities referred to in Article 6 of this Provisional Measure.

2\. In case the undertaking is approved, the investigation will cease
without the imposition of provisional of definitive duties, without
prejudice of the provisions of the Agreements on Anti-dumping and of the
Agreements on Subsidies and Countervailing Measures referred to in
Article 1.

Article 5: The Secretary of Foreign Trade - SECEX of the Ministry of
Industry, Trade and Tourism is the competent authority to determine,
through an administrative process, the margin of dumping and the amount
of subsidy, the existence of injury or threat thereof, and the causal
relation between them.

Article 6: The Minister of Finance and the Minister of Industry, Trade
and Tourism are the competent authorities to determine, through a joint
order, the imposition of provisional or definitive duties, as well as to
decide on the suspension of the application of provisional duties
referred to in Article 3 of this Provisional Measure.

Sole paragraph. The order of imposition of anti-dumping or
countervailing duties, both provisional and definitive, must indicate
the duration of the application of the duty, the product concerned, the
amount of the obligation, the country of origin or of exportation, the
name of the exporter and the reasons why such decision was taken.

Article 7: The fulfilment of the obligations resulting from the
application of anti-dumping or countervailing duties, both provisional
and definitive, will be a condition for the entry into the Country of
products found to be dumped or subsidized.

1\. The SRF of the Ministry of Finance is the competent authority to
collect anti-dumping or countervailing measures, provisional or
definitive, when paid in currency, as well as for refunds, in cases
applicable.

2\. Upon verification of default in the compliance of obligations, the
SRF will forward the appropriate documents to the Federal Tax
Prosecutors Office for registration in the federal tax debts registry
and institution of collection procedures.

Article 8: The anti-dumping and countervailing duties, provisional or
definitive, will only be applied to goods dispatched for consumption
from the date of the publication of the order establishing such duties,
except in cases of retroactivity foreseen in the Agreements on
Anti-dumping and in the Agreements on Subsidies and Countervailing
Measures referred to in Article 1.

Article 9: The duties will be temporary and their term will be
determined by the order which imposes them, considering the following:

I provisional duties shall not remain in force for a period of more than
120 days, except in the case of anti-dumping duties which, upon a
decision of the Ministers of Finance and of Industry, Trade and Tourism,
may be in force for a maximum period of 180 days, subject to the
provisions of the Anti-Dumping Agreements referred to in Article 1;

II definitive duties or approved undertakings shall only remain in force
for the period and to the extent necessary to eliminate or neutralize
the effects of dumping practices and of the concession of subsidies
which are causing injury. Under no circumstances shall they remain in
force for more than 5 years, except when, upon review, it is proved
necessary to keep the measures in force, in order to prevent the
continuation or recurrence of the injury caused by imports subject to
dumping or subsidies.

Sole paragraph. Exporters involved in an investigation process who wish
for an extension of the term of the provisional anti-dumping duties of
up to six months, in accordance with item I of this Article, must
present to SECEX a formal request to such effect 30 days before the term
of application of such duties.

Article 10: For the purposes of budget, the income from anti-dumping and
countervailing duties, classified as income of origin, will be entered
in the category of compensatory income foreseen in the sole paragraph of
Article 3 of Law 4320 of 17 march 1964.

Article 11: The Ministers of Finance and of Industry, Trade and Tourism
may, together, publish complementary rules to this Provisional Measure.

Article 12: The administrative process referred to in Articles 1 and 5
shall comply, where applicable, with the provisions of Resolution 1227
of 14 May 1987[^4], with the amendments of Resolution 1582 of 17
February 1989[^5], of the extinct Commission of Customs Policy (CPA).

Article 13: All acts undertaken according to Provisional Measure
No. 879, of 30 January 1995, are hereby validated.

Article 14: This Provisional Measure shall come into force on the date
of its publication.

Article 15: Paragraph 2 of Article 1 of Decree-Law No. 1.578, of 11
October 1977 is hereby revoked.

Brasília, 1 March 1995

174th Year of the Independence

107th Year of the Republic

MARCO MACIEL

Luiz Felipe Lampreia

Pedro Pullen Parente

Dorothea Werneck

[^1]:     ^?^See documents ADP/1/Add.26/Suppl.5 and
    SCM/1/Add.26/Suppl.5.

[^2]:     ^?^Tokyo Round Agreement on Implementation of Article VI of
    the General Agreement on Tariffs and Trade.

[^3]:     ^?^Tokyo Round Agreement on Interpretation and Application of
    Articles VI, XVI and XXIII of the General Agreement on Tariffs and
    Trade.

[^4]:     ^?^See ADP/1/Add.26/Suppl.1 and SCM/1/Add.26/Suppl.1.

[^5]:     ^?^See ADP/1/Add.26/Suppl.2 and SCM/1/Add.26/Suppl.2.