G/ADP/Q1/PER/30  
G/SCM/Q1/PER/30  
1 April 2021 
(21-2739) Page: 1/2 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS  
QUESTIONS POSED BY THE UNITED STATES REGARDING   
THE NOTIFICATION OF PERU1 
The following communication, dated and received on 30 March 2021 , is being circulated at the 
request of the Delegation of the United States.  
 
_______________  
 
 
The United States thanks Peru for its notification regarding  its law combatting t he circumvention of 
antidumping and countervailing duty measures , and poses the following questions2: 
Question 1  
Article 4, Paragraph (c) states that circumvention includes "the importation of a product subject to 
duties with minor modifications or alterations that do not imply a change in the essential character 
of the product ." Please describe  how the investigating authority determines wh at constitutes "minor 
modification s or alteration s that do not impl y a change in the essential character of a product ". 
Question 2 
Article 4, Paragraph (d) lists "reorganization of sales channels " as an indicative criterion of 
circumvention . Please elaborate on what is meant by a "reorganization " and the basis for determining 
whether there exists a reorganization.  
Question 3  
Article 4, Paragraph (f) states that circumvention includes "any other conduct the purpose of which 
is to avoid payment of an anti -dumping or countervailing duty ." The next paragraph lists three 
criteria that "must be verified ". Are those criteria used to determine whether, under Paragraph (f), 
the purpose is to avoid payment of an anti -dumping or countervailing duty ? If not, what is the 
standard to determine purpose?  
Does the "purpose [] to avoid payment " requirement also apply to the "main forms of circum vention " 
listed in Paragraphs (a) -(e)? Please explain whether the investigating authority must separately 
determine whether there is intent to evade duties when one of the listed circumvention practices is 
found to exist , or if the other forms of circumven tion listed in Article 4 are deemed sufficient to 
demonstrate intent without further evidence . If the investigating authority is required to make an 
affirmative finding with regard to intent to evade an existing anti -dumping or countervailing duty 
measure,  please explain the criteria by which the investigating authority makes this determination.  
 
1 G/ADP/N/1/PER/2/Suppl.2 - G/SCM/N/1/PER/2/Suppl.2.  
2 For the sake of efficiency, the United States suggests that committee review for all questions be 
conducted in the Committee on Anti -Dumping Practices.  G/ADP/Q1/PER/30 • G/SCM/Q1/PER/30  
- 2 - 
  Question 4 
Article 4, Paragraph (f)(ii) seems to state that there may be instances where there exists an 
"economic justification " for avoiding the payment of duties . Please elaborate on the meaning of this 
provision and how the Investigating Authority will determine "economic justification ", and provide 
an example.  
Question 5 
Article 5, Paragraphs (c) and (d) of Peru 's circumvention law states that requests to initiate a 
circumvention review must contain, among other things, "evidence that the practice reported has 
negative repercussions on the remedial effects of the duties in terms of the prices and quantities of 
the imported product subject to measures " and "evidence, in the case of alleged circumvention of 
anti-dumping duties, that the product is exported to Peru at prices lower than the normal value 
established in the original investigation or the previous review o f the duties circumvented ." Please 
explain the relevance of the requirement that  the investigated product be at prices lower than the 
established normal value to the outcome of the circumvention investigation . In other words , why is 
it necessary of establi shed a lower level of prices in order to initiate a circumvention review ? In 
addition, please clarify whether Peru intend s to adjust the "previously established normal value " (as 
noted in Article 5, paragraph (d)) for factors which could affect the market price of the investigated 
product ( e.g., inflation, changes in the prices of raw material inputs and fluctuations in world prices)?  
Question 6 
Article 8, Paragraph (b) states that interested parties have 15 calendar days to submit their 
comments on the Essential Facts forming the basis for its final decision in a circumvention review . 
Are there any other opportunities for interested parties to express their views in the circumvention 
proceeding ? If so, please explain each opportunity in detail . For example, can an interested party 
submit written evidence and comments on the application for the circumvention review ? Will 
interested parties be made aware of the existence of a circumvention application prior to initiation  
of a circumvention inquiry ? Are there continuous and on -going opportunities throughout the 
circumvention review for interested parties to express their views and submit written evidence?  
 
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