RESTRICTED
WORLD TRADE G/ADP/AHG/W/34
1December 1997
ORGANIZATION(97-5256)
Original: Spanish Committee onAnti-Dumping Practices
AdHocGroup onImplementation
TIMELINE, CONFIDENTIAL INFORMATION AND LESSER
DUTY RULE (PARAGRAPH 3OFWTO/AIR/643)
Information Provided byColombia
Thefollowing communication, dated 27October 1997, hasbeenreceived fromthePermanent
Mission ofColombia.
_______________
INFORMATION ONDUMPING INVESTIGATION PROCEDURES
(a) Timetable fortheconduct ofananti-dumping investigation
Application foraninvestigation andreceipt ofcompliance
Applications aremade toINCOMEX, which hasfiveworking daystoinform theapplicant
whether ornottheapplication complies withalltheminimum requirements under Decree 299of1995
andLaw170of1994.
Iftheapplication doesnotmeetanyofthese requirements, itisreturned totheapplicant with
therelevant comments.
IfINCOMEX finds thatfurther information isrequired before accepting theapplication, it
requests theapplicant toprovide it.Thisprocedure interrupts theperiod referred tointheparagraph
above, which resumes when theapplicant provides theinformation requested.
Ifalltheadditional information hasnotbeenprovided within twomonths afterithasbeen
requested, theapplicant isdeemed tohaveabandoned hisapplication anditisthenfiled.
Opening oftheinvestigation
After areceipt ofcompliance withtheformalities hasbeengiven, INCOMEX has20working
daystoconsider theapplication fortheimposition ofanti-dumping duties anddetermine themerits
ofopening aninvestigation. Thisstage covers atleastthefollowing aspects:
- Evidence thattheapplication isbeing made onbehalf ofamajor proportion ofdomestic
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- theexistence ofsufficient indications ofdumping, injury andacausal linkbetween
thetwo.
Dispatch ofquestionnaires
Within seven working daysfollowing thedateofpublication oftheresolution ordering the
opening ofaninvestigation, INCOMEX sends acopy ofthedecision andthequestionnaires drawn
upforthispurpose requesting information onthecasefromtheinterested parties citedtotheaddress
mentioned intheapplication andtodiplomatic orconsular representatives ofthecountry oforigin or
export. Other interested parties areconvened through anotice published onceonlyinanewspaper
withbroad national circulation.
Replies tothequestionnaires
Interested parties mustreturn thequestionnaires dulycompleted within aperiod of40working
daysfrom thedateoftheirdispatch, which maybeextended byuptotenworking days.
Preliminary determination
INCOMEX has65working daysfromthedateofopening theinvestigation totakeadecision,
bymeans ofareasoned resolution, concerning thepreliminary determinations oftheinvestigation and
may, ifappropriate, order theimposition ofprovisional duties. Thispreliminary decision maynot
betaken sooner than60working daysfrom thedateofpublication oftheresolution fortheopening
ofaninvestigation.
Thetime-limit of65daysforthepreliminary decision maybeextended byuptoonemonth.
Hearings oftheparties
Within15workingdaysfollowingpublicationofthepreliminarydetermination,interestedparties
intheinvestigation andingeneral anypersons whohavealegitimate interest therein mayrequest the
holding ofahearing ofpersons representing legitimate interests.
Convening ofhearings
INCOMEX hasfiveworking daysinwhich toconvene ahearing. Thehearing isheldwithin
onemonth from thedateofsubmission oftherequest.
Declarations ofintent
INCOMEX mayreceive declarations ofintent onlyduring thetwomonths following thedate
ofpublication oftheresolution containing thepreliminary determination.
INCOMEX hastenworking daysfrom thedateofsubmission ofadeclaration ofintent.
Conclusion oftheinvestigation
After theinterested parties havebeengiven anopportunity topresent theircaseandonthe
basisoftheevidence andinformation available, INCOMEX convenes theTrade Practices Committee
toinform itoftheconclusions oftheinvestigation, within aperiod ofthree months fromthedateof
publicationofthedecisioncontainingthepreliminarydetermination,sothattheCommitteemayconsiderG/ADP/AHG/W/34
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thecase. Thisperiod maybeextended byuptoonemonth ifINCOMEX considers thatspecial
circumstances sowarrant.
Publication ofthefinaldecision
After theCommittee hasmade itsrecommendation, within thefollowing month theMinistry
ofForeign Trade adopts thecorresponding decision, bymeans ofareasoned resolution, which is
published intheGaceta (Official Journal) oftheMinistry ofForeign Trade, intheINCOMEX chapter,
andthefulltextoftherelevant decision isthensenttotheinterested parties bymail.
(b) Listofinformation considered confidential bynature
Statements ofproduction costs andincome statements byproduction linefortheproduct investigated
Article 41ofLaw222/95 refers tothedissemination offinancial statements inthefollowing
terms: "Within amonth following thedateoftheirapproval, copies ofthegeneral financial statements,
together withcomments andthecorresponding recommendation, ifappropriate, shallbedeposited with
theChamber ofCommerce intheplace oftheregistered office. TheChamber shallsendcopies of
these documents topersons requesting them, whopaythecosts incurred."
Hence thefinancial statements which must legally bedisseminated andcanbeconsulted in
accordance withArticle 41(Law 222/95) aregeneral financial statements andnotother statements.
Likestatements ofoutput byproduction line,statements ofproduction andselling costs, (both
fortheenterprise andtheproduction line)andthefinancial statements covering intermediate periods
(both fortheenterprise andtheline)arenotgeneral financial statements: theyarenotpublic bynature
unless theapplicant expressly sodecides.
Lists ofcustomers andcommercial invoices
Inaccordance withaccounting practices, these areassimilated toauxiliary books under the
provisions ofArticle 125,paragraph 4(a)ofD.R. 2649/93, pursuant toArticle 49oftheCode of
Commerce.
Article 61oftheCode ofCommerce specifically states that"Traders 'books andpapers may
notbeexamined bypersons other thantheirowners orpersons authorized todoso,unless itisfor
thepurposes indicated intheConstitution andpursuant toanorder bythecompetent authority." In
accordance withthisArticle, anauxiliary book isnotdeemed tobeofapublic nature.
Input-output table
Theinput-output tableisnotasupporting accounts document inaccordance withArticle 123
ofD.R. 2649/93.
Ananalysis oftheinformation contained inthetableshows thatitcorresponds toconsumption
ofrawmaterials, andthisinformation shown inColombian currency constitutes anelement ofthe
production cost-rawmaterials -inthestatement ofproduction costs. Asmentioned above, disclosure
ofthestatement ofproduction costsisnotcompulsory andbyextension thisalsoapplies toitsconstituent
elements.
Theinformation contained intheinput-output tabletherefore cannot beconsidered asbeing
public bynature.G/ADP/AHG/W/34
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Industrial secrets andknow-how
Inaccordance withArticle 72ofDecision 344of1993 oftheCommission oftheCartagena
Agreement andArticle 75.3oftheCode ofCommerce.
(c) How thelesser dutyruleisapplied inanti-dumping investigations inColombia
Until now, Colombia hasnotapplied thedumping margin asduty. Forthepurposes of
determining theanti-dumping duty, acomparison ismade between theprice oftheimported product
andthatofthedomestic product.
Thefollowing procedure isusually followed:
1. Ifacomparison oftheweighted average price ofdomestic producers compared with
thatofimports, under thesame physical conditions andatthesame levels oftrade,
shows thatthepriceoftheimported product islower thanthatofthedomestic producer:
1.1 Theaverage weighted price ofdomestic producers iscalculated, dividing the
totalvalue ofnetsalesbythecorresponding volume ofsuchsalesforthemost
recent period oftimeforwhich information isavailable;
1.2 Acalculation ismade ofthecostsborne byanimporter forplacing hisproduct
inthesame conditions ofsaleasdomestic producers;
1.3 Thefigure arrived atunder 1.2issubtracted fromthefigure under 1.1,giving
aprice atwhich ahypothetical import would bedeclared inorder tobesold
onthedomestic market ataprice verysimilar tothatatwhich domestic
producers sellidentical orlikeproducts;
1.4 Thispriceisthenfixed astheminimum priceatwhich importers maydeclare
theirgoods. Ifimports aredeclared atapricelower thanthisminimum price,
theDirectorate ofTaxes andNational Customs (DIAN) collects thedifference
between thetwoprices, butthisdutymustnotexceed theabsolute margin of
dumping identified during theinvestigation.
2. Ifitisshown thatthelowprice ofimports hascaused thedomestic producers 'price
tofallbelow theseminimum import prices, thenominal pricethatwould haveprevailed
iftheprice trend noted inpreceding periods hadcontinued isapplied.
Thisestimated price iscalculated inthewayexplained insubparagraphs 1.3and1.4
above.