./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/BRA/8
G/SCM/Q1/BRA/8
16 June 1998
(98-2429)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Questions from Mexico to Brazil1
The following communication, dated 2 June 1998, has been received from the Permanent
Mission of Mexico.
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1. According to Chapter II, Article 4, "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". How are imports under the drawback method analyzed?
2. In Chapter II, section I, Article 5.3 it is stated that a lower percentage is allowed "when it
shall be demonstrated that domestic sales at this percentage do occur in sufficient quantity to permit
adequate comparison".  How is "sufficient quantity" defined?
3. Chapter 2, section I, Article 6 envisages the existence of "special market conditions".  In what
circumstances, according to the Brazilian investig ating authority, do "special market conditions"
exist?
4. Chapter 2, section I, Article 6 mentions as op tions for determining the normal value the price
charged in exporting operations to a third country and the cost of production in the country of origin
plus a reasonable amount for administrative costs and a margin of profit.  Does the Brazilian
investigating authority have an order of preference for using one or other of these options?  If not,
which criterion should be used?
5. Chapter 2, section I, Article 6.4 states that "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 no t be taken into account in determining normal value,
unless it is proven that the related prices and costs are comparable to those of operations amongparties that are not so related".  What are the criteri a for considering enterprises to be associated or as
having a compensatory arrangement?  How does the investigating authority make sure that the prices
and costs are comparable to operations among parties that are not related?
6. Chapter 2, section II, Article 8 refers to the possibility of constructing the export price.  What
is the methodology used to construct the export price and in what circumstances can an export price
be considered reliable despite the existence of an association or compensatory arrangement between
the exporter and the importer or a third party?
                                                     
1G/ADP/N/1/BRA/2/ and G/SCM/N/1/BRA/2.G/ADP/Q1/BRA/8
G/SCM/Q1/BRA/8
Page 2
7. With respect to Chapter 2, section III, Article 9.1, what is the definition of the term
"differences in levels of trade"?
8. Chapter 2, section III, Article 10 refers to the situation in which the product is merely
transshipped through the exporting country.  How does the investigating authority define goods being
transshipped (in transit)?
9. With respect to Chapter 2, section IV, Article 12.II concerning the determination of the
margin of dumping on a transaction-to-transaction basis, how are the transactions to be compared
selected?  Are customers, dates or some other criterion considered?
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