RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/IG/W/43/Suppl.1
3 June 2002
(02-3050)
Committee on Anti-Dumping Practices
Informal Group on Anti-CircumventionOriginal:  Spanish
COMMUNICATION BY PERU
Supplement
The following communication, dated 21 May 2002, has been received from the Permanent
Mission of Peru.
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The Permanent Mission of Peru to the International Organizations based in Geneva presents
its compliments to the Secretariat of the World Trade Organization – Rules Division and, in
connection with the previous meeting of the Group on Anti-Circumvention of the Committee on Anti-Dumping Practices, held on 24 April 2002, submits herewith a paper on the topic "What constitutes
circumvention?".
I would be grateful to the WTO Secretariat if the attached paper could be considered as a
supplement to document G/ADP/IG/W/43 and circulated to the Members.
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This paper contains some additional comments to those made by Peru in document
G/ADP/IG/W/43 of 18 February 2002.
Topic 1 – What constitutes circumvention?
Peru stated in its previous communication that in order to determine whether the purpose of a
given act is to evade anti-dumping duty, it is necessary to discuss – in detail and on the basis of
concrete examples – practices such as the following:
• Minor alterations of merchandise.
This consists of making minor alterations to a product subject to anti-dumping duty to ensure
that the new product no longer corresponds to the original definition of the similar product, therebycircumventing an anti-dumping measure. These alterations may consist of changes to the form,
physical shape or composition of the product, etc., which do not, in practice, affect its characteristics,
end use or clients.
For example, altering the purity of a mineral by adding a neutral additive may mean it can be
classified under a different tariff heading, thereby circumventing an anti-dumping duty, but the end
use of the product remains the same.
• Export of components and spare parts.
This occurs when an exporter decides to cease exports of the goods subject to anti-dumping
duties and to start exporting parts and components that are not subject to anti-dumping duties.
• Third country or importing country assembly.
The exporter decides to export parts and components of a product subject to anti-dumping
duties and to assemble the end-product in a third country for subsequent exportation, or to assemble itin the importing country.  Simple assembly or "screwdriver" operations in a third importing country
may be indicative of circumvention.
• Third country transshipment.
When a national authority decides to impose anti-dumping duties on a product, that product
is shipped to the importing country via third countries not subject to the measures.
• Customs fraud.
False customs declarations with regard to origin, customs classification or the value of the
imported goods.
There are also certain factors to be considered in determining whether a practice is aimed at
evading anti-dumping duty:
A. The moment when the act in question occurred.   It should be discussed whether, in
order to forestall the imposition of definitive anti-dumping measures, circumvention
of an anti-dumping duty may already take place at the time of the initiation of aninvestigation and the application of provisional measures.  It should also be examined
whether activities that take place before the initiation of an anti-dumpingG/ADP/IG/W/43/Suppl.1
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investigation may be considered as circumvention, and whether such activities may in
other circumstances constitute circumvention of an anti-dumping duty.
B. Trade trends.  An analysis of trade flows of the product subject to anti-dumping
duties. The fact that imports of the product from country X decline drastically and, atthe same time, imports of a like or similar product from country Y begin to increase
significantly, may be indicative of ci rcumvention of the anti-dumping measure.
C. Investments made or other factors.  The existence of significant investment,
production, manufacturing or assembly activities in another country or in the
importing country may or may not be indicative of circumvention of a decision to
impose anti-dumping duties.
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