WORLD TRADE
ORGANIZATIONG/ADP/N/1/ECU/1/Suppl.1
G/SCM/N/1/ECU/1/Suppl.1
G/SG/N/1/ECU/2/Suppl.1
15 July 1998
(98-2797)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing Measures
Committee on SafeguardsOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS
UNDER ARTICLES 18.5, 32.6 AND 12.6 OF THE AGREEMENTS
ECUADOR
Supplement
The attached communication, dated 8 June 1998, has been received from the Permanent
Mission of Ecuador.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 2
THE FOREIGN TRADE AND INVESTMENT COUNCIL
Considering:
That under the terms of Law No. 12 of 22 May 1997, published in Official Journal No. 82 of
9 June 1997, the Foreign Trade and Investment La w, "LEXI", entered into force in Ecuadorian
territory and authorizes the Foreign Trade and Investment Council (COMEXI) to impose
anti-dumping duties countervailing duties and safeguard measures;
That the Foreign Trade and Investment Law (LEXI) establishes that one of the elements of
State policy regarding foreign trade and export and investment promotion is to ensure that domesticindustry competes internationally in keeping with fair and equitable free trade practices;
That it is also an element of such State policies to prevent and counteract the adverse effects
on domestic industry of the application of unfair trade practices;
That Article 8 of the Foreign Trade and Investment Law (LEXI) has established
countervailing or anti-dumping duties and the application of safeguard measures on a temporary basis,
as mechanisms to prevent unfair practices within the WTO framework, as appropriate;
That, under LEXI Article 11(a), COMEXI's duties and powers include the establishment of
foreign trade policies in regard to goods, services and technology, integration and direct investment,
in keeping with the principle of free trade, the world trade environment, the international
commitments entered into by Ecuador in this connection, and other factors;
That LEXI Article 6 authorizes the implementation of remedial measures in regard to free
competition, the development of foreign and domestic trade, the protection of goods and services "in
the cases covered by the rules of the World Trade Organization (WTO)";
That COMEXI also has the authority under Article 11(j):  "To impose on a temporary basis
countervailing duties, anti-dumping duties or apply safeguard measures to remedy unfair practices and
anomalous situations concerning imports that injure domestic industry, in observance of WTO rules
and procedures";
That it is essential to establish clear, transparent procedures for the exercise of COMEXI's
powers under the above paragraph;
That it is also essential for the development of domestic production to make it feasible to
prevent and remedy the adverse affects caused by unfair trade practices;
That LEXI Article 13, last paragraph, authorizes COMEXI to regulate any internal matters it
deems necessary for the purposes of its powers and functions;
That above-mentioned Law No. 12 stipulates in Article 15 that the Ministry of Foreign Trade,
Industrialization and Fisheries is the executive body for foreign trade and investment policy;
That it is necessary to facilitate the implem entation of international treaties by adapting
domestic law to the commitments assumed in the World Trade Organization and the AndeanCommunity, so as to avoid injury to domestic industry stemming or possibly stemming from unfair
trade practices such as dumping and subsidization, or a substantial increase in imports under
conditions that affect domestic industry (safeguards);  and,
In the exercise of its powers,G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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Resolves:
To issue the following "RULES AND PROCEDURES TO BE FOLLOWED FOR THE
APPLICATION OF MEASURES TO PREVENT AND COUNTERACT THE ADVERSE EFFECTS
OF UNFAIR TRADE  PRACTICES OR INCREASED IMPORTS UNDER CONDITIONS SUCH
AS TO CAUSE OR THREATEN TO CAUSE SERIOUS INJURY TO DOMESTIC INDUSTRY".
TITLE I
OBJECT AND SCOPE
Article 1 - Object.
The object of the present instrument is to:  Regulate the provisions of the following World
Trade Organization Agreements:  the Agreement on Implementation of Article VI of the GeneralAgreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, the
Agreement on Safeguards and, where relevant, the Agreement on Agriculture.
Define the conditions for the application of anti-dumping duties and countervailing duties on
imports in order to counteract  unfair trade practices and remedy distortions created by such practices.
Determine the conditions for the application of safeguard measures to imports originating in
and consigned from WTO Member countries;
Regulate the procedure to be followed in investigations of complaints concerning unfair
practices and safeguards, to impose anti-dumping duties, countervailing duties and safeguard
measures;
In cases in which Ecuador has signed international conventions or agreements regulating the
application of countervailing duties, anti-dumping duties or safeguard measures, the provisions
thereof shall prevail where they are inconsistent wi th those contained in this instrument.  In matters
not regulated by such international treaties or conventions, the provisions of the present instrumentshall apply insofar as they do not conflict with international commitments entered into by Ecuador;
The above-mentioned measures shall be applied to products originating in member countries
of the Andean Community, in accordance with the pr ocedures established in the rules issued by the
Andean integration bodies;
Safeguards in connection with textiles shall be applied pursuant to the provisions of Article 6
of the WTO Agreement on Textiles and Clothing.
Article 2 - Scope.
These rules shall apply in accordance with the provisions of the agreements of the World
Trade Organization (WTO), other than the exceptions expressly set out herein for non-WTO Member
countries in respect of which no international commitments have been entered into.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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TITLE II
DEFINITIONS
Article 3 – Definitions.
Anti-dumping Agreement.   Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994.
Threat of  serious injury.  Threat of a serious injury shall be understood to mean serious injury
to a domestic industry that is clearly imminent, and it shall be based on facts and not merely onallegation, conjecture or remote possibility.
Threat of injury.  Threat of injury is an imminent and clearly foreseen danger of injury to a
domestic industry.
Investigating authority.  The Trade Practices and Safeguards Division of the Ministry of
Foreign Trade, Industrialization and Fisheries (MICIP), which is responsible for initiating and
conducting dumping, subsidies and safeguard investigations.
COMEXI.  The Foreign Trade and Investment Council.Production cost.  The production cost includes th e cost of direct materials and components,
indirect manufacturing costs, including general selling and administrative costs.
Direct costs and expenses.  Those which are specific to the product under investigation.Indirect costs and expenses.  Those which are common to various products of the exporting
enterprise, including the product under investigation.
Serious injury.  A significant overall impairment in the position of a domestic industry.Injury.  A material loss or impairment or the de privation of any lawful, normal gain which the
domestic producers of the goods in question may suffer , or an impediment to the establishment of new
industries.
Anti-dumping duty.  A customs duty which is applied to goods imported under dumping
conditions, intended to restore the conditions of competition distorted by the dumping.
Countervailing duty.  A customs duty which is applied to subsidized goods imported into
Ecuadorian territory, intended to restore the conditions of competition distorted by the subsidy.
Dumping.  An import is considered as being at a dumped price if the export price is less than
the normal value of a like product destined for consumption in the country of origin or of export in the
ordinary course of trade, when compared at the same market level.
Centrally-planned economies.  Economies in which the majority of enterprises are wholly or
partly owned by the State and in which the operating criteria, including prices, production, investmentprogrammes and levels of employment, are under the direct control of the Government.
Indirect manufacturing costs.  These include the cost of indirect materials and components,
the cost of indirect labour, the cost of energy, including electricity and fuel, depreciation of assets
consumed in protection and other relevant indirect costs.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 5
Massive imports.  Imports in large quantities of the product under investigation, from the date
of initiation of dumping investigations, from the date of the invitation to hold consultations in subsidy
investigations, to the date of the imposition of provisional measures, whose volume and other
circumstances such as the rapid accumulation of stocks, seriously impair the remedial effect of thedefinitive anti-dumping or countervailing duty.
LEXI.  Foreign Trade and Investment Law.Adjustment measures.  All actions taken by domestic producers to supplement safeguard
measures and adjust their production activities to foreign competition.
Ordinary course of trade.  Trade reflecting market conditions in the country of origin and
carried out habitually or within a representative period between independent buyers and sellers.
Interested parties.  Interested parties shall be understood to mean the applicant, a producer of
the like product in Ecuador, a trade or business association the majority of the members of which areproducers of the like product in Ecuador, an importer, industrial user and consumer of the product
under investigation, a foreign exporter or producer, the government of the exporting country, a trade
or business association the members of which are exporters or importers of the product.
Unfair trade practices.  Unfair international trade practices are deemed to be imports of goods
under dumping conditions or goods which have been subsidized in their country of origin or
consignment.
Export price.  The price actually paid or payable for the product sold for export to Ecuador.
Domestic industry.  The term "domestic industry" shall be interpreted as referring to domestic
producers as a whole of the like products or to thos e of them whose collective output of the products
constitutes a major proportion of the total domestic production of these products.
Like product.  A product which is alike in all respects to the product under investigation, or a
product which, although not alike in all respects to the product under consideration, has characteristics
which are similar to or closely resemble those of the comparable product and allow it to perform thesame functions.
Provisional safeguard.  A measure of a temporary character adopted in circumstances critical
to a domestic industry, in order to avert serious injury.
Safeguard.  An exceptional measure temporarily applied to imports of products into
Ecuadorian territory which have increased or will increase in such quantities, in absolute terms or
relative to domestic production, or under such conditions as to cause or threaten to cause serious
injury to the domestic industry that produces like or directly competitive products.  Safeguard
measures shall be applied to the imported product, irrespective of the source and type.
Subsidies.  An import is considered as having been subsidized when the production,
manufacture, marketing, transport or export of the imported product or of its raw materials and inputs
have received directly or indirectly any bounty, aid, premium, stimulus or incentive from the
Government of the country of origin or of export or from its public or semi-public agencies,conferring on the recipient a benefit which strengthens its international competitive position, except in
the case of internationally accepted practices.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 6
Normal value.  The normal value of a product exported to Ecuador is the price actually paid
or payable for a like product when sold for consumption or use in the domestic market of the country
of origin or of export in the ordinary course of trade.
In the absence of such ordinary course of trade, as in the case of centrally-planned economies,
the point of reference shall be the normal valu e of a market economy country with characteristics
similar to the country with a centrally planned economy that is under investigation.
TITLE III – ANTI-DUMPING DUTIE S AND COUNTERVAILING DUTIES
CHAPTER I
DETERMINATION OF THE MARGIN OF DUMPING,
THE EXPORT PRICE AND THE NORMAL VALUE
Article 4 - Determination of the margin of dumping.
The margin of dumping is defined as the difference between the normal value and the export
price, calculated with reference to the latter price.  The margin shall be calculated per unit of the
product imported into Ecuadorian territory at the dumped price.
Where the product under investigation consists of goods which are not physically identical
with each other, the margin of dumping shall be estimated according to the type of good, in such a
way that the normal value and the export price involved in each calculation correspond to comparable
goods.  When the margin of dumping is calculated by the type of good, the margin for the product
under investigation shall be determined as the weighted average of all the individual margins whichhave been estimated.  The weighting shall be calculated according to the proportion of each type of
good relative to the total volume of the product exported during the period of investigation.
Article 5 - Determination of the normal value.
The following shall be taken into account for the purposes of determining the normal value:
When there are no sales of the like product in the ordinary course of trade in the domestic
market of the exporting country or when, because of the particular market situation or the low volume
of the sales in the domestic market of the exporting country, such sales do not permit a proper
comparison, the margin of dumping shall be determined by comparison with a comparable price of
the like product when exported to an appropriate third country, provided that this price isrepresentative, or with the cost of production in the country of origin plus a reasonable amount for
administrative, selling and general costs and for profits.
Sales of the like product in the domestic market of the exporting country or sales to a third
country at prices below per unit (fixed and variable) costs of production plus administrative, sellingand general costs may be treated as not being in the ordinary course of trade by reason of price and
may be disregarded in determining normal value only if the authorities determine that such sales are
made within an extended period of time in substantial quantities and are at prices which do not
provide for the recovery of all costs within a reasonable period of time.  If prices which are below per
unit price at the time of sale are above weighted average per unit costs for the period of investigation,such prices shall be considered to provide for recovery of costs within a reasonable period of time.
Costs shall normally be calculated on the basis of records kept by the exporter or producer
under investigation, provided that such records are in accordance with the generally accepted
accounting principles of the exporting country and reasonably reflect the costs associated with theG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 7
production and sale of the product under consideration.  Authorities shall consider all available
evidence on the proper allocation of costs, including that which is made available by the exporter or
producer, in particular in relation to establishing appropriate amortization and depreciation periods
and allowances for capital expenditures and other development costs.  Unless already reflected in thecost allocations under this paragraph, costs shall be adjusted appropriately for those non-recurring
items of cost which benefit future and/or current production, or for circumstances in which costs
during the period of investigation are affected by start-up operations.
Article 6 - Adjustments of the normal value.
The amounts for administrative, selling and general costs and for profits shall be based on
actual data pertaining to production and sales in the ordinary course of trade of the like product by the
exporter or producer under investigation.  When such amounts cannot be determined on this basis, the
amounts may be determined on the basis of:
(a) The actual amounts incurred and realized by the exporter or producer in question in
respect of production and sales in the domestic market of the country of origin of the
same or general category of products;
(b) the weighted average of the actual amounts incurred and realized by other exporters
or producers subject investigation in respect of production and sales of the likeproduct in the domestic market of the country of origin;
(c) any other reasonable method, provided that the amount for profit so established shall
not exceed the profit normally realized by other exporters or producers on sales of
products of the same general category in the domestic market of the country of origin.
Article 7 - Determination of the export price.
In cases where there is no export price or where it appears to the investigating authority that
the export price is unreliable because of associ ation or a compensatory arrangement between the
exporter and the importer or a third party, the export price may be constructed on the basis of the price
at which the imported products are first resold to an independent buyer, or if the products are notresold to an independent buyer, or not resold in the condition as imported, on such reasonable basis as
the authority may determine.
Article 8 - Adjustments to the export price.
In making a fair comparison between the normal value and the export price, the following,
inter alia , shall be deducted in the form of adjustments to the export price:
(a) The amounts directly connected with the costs incurred by the exporter, taking into
account conditions agreed with the buyer for delivery of the product (f.o.b., c.i.f.,etc);
(b) the amounts for direct costs in providing guarantees, technical assistance and other
after-sales services;
(c) the costs of commission paid in connection with the sales under consideration;
(d) wages paid to full-time sales personnel.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 8
The investigating authority may consider other reasonable adjustments, for which purpose it
shall consider the terms and conditions of sale, differences in quantities, physical differences and
differences in taxation.
Article 9 - Conditions for making comparisons and adjustments.
The export price and the normal value shall be examined on a comparable basis, taking into
account the agreed conditions for the delivery of th e goods, preferably at the ex-factory level and in
respect of sales made at as nearly as possible the same time.
The amount of the adjustments to the normal value and the export price shall be calculated on
the basis of relevant information for the period of investigation of the practice or in the light of the
data for the latest financial year available.  When an interested party asks for a particular adjustment
to be taken into consideration, it shall provide the corresponding evidence.
CHAPTER II
DETERMINATION OF THE NATURE AND AMOUNT  OF THE SUBSIDY
Article 10 - Nature and amount of the subsidy.
The nature of subsidies, whether they are prohibited or permissible, and in the latter case
actionable or non-actionable, as well as the amount of the subsidy and the benefit to the recipient,
shall be determined in accordance with the WTO Agreement on Subsidies and Countervailing
Measures.
Article 11 - Deductions to determine the amount of the subsidies.
The amount of the subsidy shall be established by deducting the following elements from the
total subsidy.
Any expenditure that has necessarily been incurred in order to be entitled to the subsidy or to
benefit therefrom.
Export taxes, duties and other levies to which the export of the product to Ecuador has been
subject and which are specifically intended to of fset the subsidy.  When a participant in an
investigation applies for such a deduction, it shall supply evidence substantiating the application.
CHAPTER III
INJURY, THREAT OF INJURY AND RETARDATION OF THE
ESTABLISHMENT OF A DOMESTIC INDUSTRY
Article 12 - Determination of injury.
A determination of injury shall be based on sufficient evidence and involve an objective
examination of the following factors.
The volume of imports at dumped or subsidized prices, particularly to determine whether
there has been a significant increase, in absolute terms or relative to total production or consumption
in Ecuador of the product concerned.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 9
The impact which the importation of dumped or subsidized goods has or may have on the
prices of like products in the Ecuadorian domestic market.  Consideration shall be given in this
respect to whether the imported product is sold in the domestic market at a price significantly lower
than that of like products or whether the effect of such imports is to depress prices to a significantextent or to prevent a reasonable price rise which would otherwise have taken place.
The impact which dumped or subsidized imports have on the domestic producers affected,
taking account of the impact on output, utilization of installed capacity, inventories, sales, market
share, growth, profits, return on investments,  cash flow, capitalization, employment and wages,
among other factors.
Article 13 - Determination of a threat of injury.
A determination of a threat of injury to domestic industry shall be based on facts and not
merely allegation, conjecture or remote possibility.  The change in circumstances which would create
a situation in which the subsidy would cause injury must be clearly foreseen and imminent.  Inmaking a determination regarding the existence of a threat of material injury, the authorities should
consider, inter alia , such factors as:
- Nature of the practice in question and the trade effects likely to arise from the
dumping and the subsidization;
- a significant rate of increase of dumped or subsidized imports into the domestic
market indicating the likelihood of substantially increased importation;
- sufficient freely disposable, or an imminent substantial increase in, capacity of the
exporter indicating the likelihood of substantially increased subsidized exports to the
Ecuadorian market in unfair conditions, taking into account the availability of other
export markets to absorb any additional exports;
- whether the imports are entering at prices that will have a significant depressing or
suppressing effect on domestic prices, and would likely increase demand for further
imports; and
- inventories of the product being investigated.No one of these factors by itself can necessarily give decisive guidance, but the totality of the
factors considered must lead to the conclusion that further exports at dumped and subsidized pricesare imminent and that, unless protective action is taken, material injury would occur.
With respect to cases where injury is threatened by dumped or subsidized imports, the
application of anti-dumping or countervailing measures shall be considered and decided with special
care.
Article 14 - Examination of material retardation of the establishment of an industry.
For the purposes of determining material retardation of the establishment of an industry in
Ecuador, the investigating authority shall examine, inter alia,  feasibility studies, loans negotiated and
contracts for procurement of machinery related to new investment projects or the expansion of
existing plant.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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Article 15 - Period of review of injury or threat thereof.
The review of the injury or threat of injury shall comprise a period covering imports of the
like product in the last twelve (12) months for which information is available.  The investigatingauthority may modify such period or extend it to cover imports made before and/or after the initiation
of the investigation.
Article 16 - Evidence of injury.
If the investigation relates to products originating in or consigned from countries in respect of
which there are no applicable international obligations, consideration shall be given to whether thecountry of export or of origin would provide evidence of injury to Ecuadorian exports.
If such evidence is not provided, Ecuador may impose anti-dumping or countervailing duties
simply on a finding of dumping or subsidization.
CHAPTER IV
PROCEDURES
SECTION I - SUBMISSION AND ACCEPTANCE OF THE APPLICATION
Article 17 - Initiation of the proceeding.
Proceedings to investigate unfair international trade practices shall be initiated ex officio or at
the request of a major proportion of the domestic industry.
Article 18 – Initiation ex officio.
The investigating authority may in itiate an investigation ex officio, when there is sufficient
evidence to assume that injury has been caused by dumped or subsidized imports.
Article 19 - Initiation at the request of a major proportion of the domestic industry.
Investigations to determine the existence, degree and effect of any alleged unfair practice
shall be initiated upon a written application by or on behalf of the domestic industry.  The application
may also be made by an association of producers which, for the purposes of the application,
represents a major proportion of domestic production.
An investigation shall not be initiated unless the authorities have determined, on the basis of
an examination of the degree of support for, or opposition to, the application, expressed by domestic
producers of the like product, that the application has been made by or on behalf of the domestic
industry.  The application shall be considered to have been made "by or on behalf of the domesticindustry" if it is supported by those domestic producers whose collective output constitutes more than
50 per cent of the total production of the like product produced by the part of the domestic industry
expressing either support for or opposition to the application.  However, no investigation shall be
initiated when domestic producers expressly supporting the application account for less than 25 per
cent of the total production of the like product produced by the domestic industry.
When domestic producers are related to the exporters or importers of the allegedly dumped or
subsidized product, the term "domestic industry" may be interpreted as referring to the rest of the
producers.  The word "related" shall be within the meaning of Article 4.1(i) of the Anti-Dumping
Agreement.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 11
In exceptional circumstances, in the case of regional markets, domestic industry may be
divided into two or more separate markets.  The producers within each market may be regarded as a
separate domestic industry if they sell most of their production of the product in question in that
market and if the demand in that market is not to any substantial degree supplied by the producers ofthe product in question located elsewhere in the countr y.  In such circumstances, injury or threat of
injury may be found to exist even where a major portion of the total domestic industry is not injured,
provided there is a concentration of dumped or subsidized imports into that regional market and they
cause or threaten to cause injury to the producers of all or almost all the production within such
market.
Article 20 - Application requirements.
The application must be submitted in writing, using the forms prepared for the purpose and
issued to the interested party by the investigat ing authority, and the requisite documents shall be
attached.  The application shall contain the inform ation reasonably available to the applicant on the
following:
1. Identity of the applicant, name or business name and domicile of the applicant, and
where appropriate, his agent;  activity in which he is engaged and documents in
support thereof.
2. Description of the volume and value of the domestic production of the like product,
indicating the specifications and characteristics, the tariff heading and other
identifying data.
3.  Where a written application is made on behalf of the domestic industry, the
application shall identify the industry on behalf of which the application is being
made by a list of all known domestic producers of the domestic product (or
associations of domestic producers of the like product) and, to the extent possible, a
description of the volume and value of domestic production of the like product
represented by such producers.
4.  The names of the country or countries of origin or export in question.5.  The identity of each known foreign exporter or producer.6.  A list of known persons importing the product in question.
7.  Information on prices at which the product in question is sold when destined for
consumption in the domestic markets of the country or countries of origin or export
(or, where appropriate, information on the prices at which the product is sold from the
country or countries of origin or export to a third country or countries, or on the
constructed value of the product) and information on export prices or, whereappropriate, on the prices which the product is first resold to an independent buyer in
the territory of the importing Member.
8.  Information on the evolution of the value and volume of the imports of the allegedly
dumped or subsidized product.
9. The effect of the imports on the prices of the like product in the domestic market.10.  The impact of the imports on the domestic industry, as demonstrated by relevant
factors and indices having a bearing on the state of the domestic industry, such asG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 12
actual and potential decline in sales, profits, output, market share, productivity, return
on investments, or utilisation of capacity;  factors affecting domestic prices;  the
magnitude of the margin of dumping;  actual and potential negative effects on cash
flow, inventories, employment, wages, growt h, ability to raise capital or investments.
11.  In the case of a subsidy, the application must identify the encouragement, incentive,
premium, subsidy or help of any kind provided to the imported good or its raw
materials and inputs in the country of origin or of export, the authority or agency
providing such support, indicating where appropriate the applicable law and, where
possible, the value or amount thereof and its impact on the price of the imported
product.
12.  Determination of the injury, threat of injury or material retardation of the
establishment of a productive activity in Ecuador, caused by the imports at dumped or
subsidized prices.
13.  Evidence and documents to verify the information provided and arguments in support
of the need to apply anti-dumping duties or countervailing duties.
14.  Elements to determine the causal relatio nship between the practice and the injury.
15.  The investigating authority shall require interested parties making available
confidential information to provide non-confidential summaries thereof.
16.  Other relevant information deemed necessary.
17.  Place and date of submission of the application.
18.  A study justifying the presumption of injury to domestic production caused by the
unfair practice.
All the information on volumes and values subm itted to the investigating authority by the
applicant enterprise shall pertain to the previous four years and to the part of the current year of theinvestigation that has elapsed so far.
SECTION II - EVALUATION OF THE APPLICATION AND INITIATION
OF THE INVESTIGATION
Article 21 - Submission of the application.
The application shall be submitted to the Trade Practices and Safeguards Division of the
Ministry of Foreign Trade, Industrialization and Fisheries, in the original and with two copies.
Article 22 - Receipt and evaluation of the application.
On receipt of the application to impose anti-dumping or countervailing duties, the
investigating authority shall have thirty (30) days from the date of receipt to evaluate and review
compliance with the requirements and shall inform the applicant whether the application is acceptedor not.
When, in the opinion of the investigating authority, there is good reason to do so, the above
period may be extended by up to fifteen (15) working days.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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If, within that period, the investigating auth ority finds it necessary to request further
information for the purposes of acceptance of the ap plication, it shall do so from the applicant.  Such
request shall interrupt the period established in the above paragraph, which shall recommence when
the applicant provides the information requested.  Once the information has been obtained, theinvestigating authority shall, within the above-mentioned period, proceed to accept the application.
Article 23 - Acceptance of the application and initiation of the investigation.
The application shall be accepted and a dumping or subsidies investigation shall be initiated,
provided:
- It is established that the application is submitted on behalf of a major proportion of
the domestic industry;
- the information, documents and the study submitted are sufficient to presume or to
determine the existence of an unfair practice, injury to the domestic industry and thecausal relationship between the unfair practice and the injury.
The MICIP Under-Secretary for Foreign Trade and Integration shall declare that it is
appropriate to initiate a dumping or subsidization investigation, in a resolution that indicates the
de facto and de jure  reasons for the decision.
An investigation shall not be initiated in cases where the volume of dumped or subsidized
imports is negligible, or where the margin of dumping or global level of subsidization is de minimis  or
where the injury caused by the imports in question is negligible.  For such purposes, the criteria set
out in Article 36 [sic] of this Resolution shall apply.
Where it is not appropriate to initiate an investigation, this shall be so stated in a reasoned
resolution, which shall be notified to the applicant within five (5) working days following the date of
issue.  The permissible legal remedies against such a resolution shall apply.
Article 24 - Consultations.
When the application is accepted, in the course of the investigation into dumping or
subsidization practices the investigating authority sh all hold consultations with the parties concerned,
namely, the government authorities and the exporters of the exporting country, and the importers and
domestic producers of the product in question, in order to find a mutually agreed solution.
Where, in the process of the consultations a mutually agreed solution is reached between the
parties, the initiation of an investigation shall be declared inappropriate or the investigation shall be
suspended.  If, after one month from the commencement of the consultations no mutually agreed
solution has been reached, the investigation shall be continued.
Notwithstanding the provisions of this Article, the Ministry of Foreign Trade may arrange
consultations throughout the period of the investigation, but this shall not suspend or prevent
continuation of the investigation.
Article 25 - Publication and notification.
Both for dumping and for subsidization, once the application has been accepted and it is
appropriate to initiate an investigation, the investigating authority shall proceed to publish the
resolution initiating the dumping or subsidization investigation in the Official Journal, expressly
indicating the dates of initiation and completion of the investigation.  The resolution shall be notifiedG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 14
to the Committee on Anti-Dumping Practices and the Committee on Subsidies and Countervailing
Measures of the World Trade Organization when the country concerned is a member of the
Organization, to the Government of the exporting country and to the interested parties.
The same procedure shall be followed when the investigating authority orders provisional and
definitive measures to prevent and remedy the unfair trade practices.
Furthermore, the resolutions shall be published in a newspaper with a large circulation in
Ecuador, for the information of all those concerned.
For publication, notification and communication purposes, the investigating authority shall
have a period of ten (10) working days from the date of the resolution ordering the initiation of
investigation and to the application of provisional or definitive measures.
The authorities shall avoid, unless a decision has been made to initiate an investigation, any
publicizing of the application for the initiation of an investigation.
The WTO Committee on Anti-Dumping Practices and the Committee on Subsidies and
Countervailing Measures, as appropriate, shall be notified before the measure is published.
Article 26 - Forms.
The investigating authority shall prepare thr ee types of forms to be issued to domestic
producers and importers and to foreign exporters of the product under investigation, in the following
order:
(a) To domestic producers before the application is submitted or after the application has
been submitted without attaching the respective forms;
(b) to domestic importers and to foreign exporters once the application has been accepted
and the resolution to initiate an  investigation has been issued.
The forms, duly completed and with the relevant documents demonstrating that the
information is suitable, shall be transmitted to the in vestigating authority within thirty (30) days from
the date of issue.
The period for returning the forms may, at the request of the interested party, be extended by
the investigating authority for thirty (30) days, provided there is good reason.
Article 27 - Withdrawal of the application.
If, after a period of 45 days from the request for further information such information has not
been sent in its entirety, the applicant will be deemed to have withdrawn the application, which shallbe shelved.
Article 28 - Preparation of the file.
When the investigation is initiated, the investig ating authority shall prepare a file containing
all the information pertaining to the case.  The file shall include a separate section containing
information of a confidential nature.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 15
SECTION III - DETERMINATION AND IMPOSITION OF
PROVISIONAL MEASURES
Article 29
Within sixty (60) days of the initiation of a dumping or subsidies investigation, MICIP,
through the investigating authority, shall prepare a technical report determining, where appropriate,
the level of any provisional anti-dumping or countervailing measures and shall submit it to COMEXI
for approval.
Provisional measures may be applied if:(a) An investigation has been initiated in accordance with Articles 17 and 18 of this
Resolution, a public notice has been given to that effect and interested parties have
been given adequate opportunities to submit information and make comments;
(b) a preliminary affirmative determination has been made of dumping or subsidies and
consequent injury to a domestic industry;  and
(c) the competent authority judges such measures necessary to prevent injury being
caused during the investigation.
The period allowed for the preliminary determination may be extended by up to five (5)
working days, ex officio or upon application by an interested party, provided there is good cause.
The provisional anti-dumping or countervailing duties shall be applied through the same
resolution as that adopting the preliminary dete rmination, which may opt for any of the following
decisions:
To continue the investigation without the applic ation of provisional duties, to continue the
investigation with the application of provisional duties, or to terminate the investigation.
When a dumping or subsidies investigation is carried out for products originating in or
consigned from countries not Members of the World Trade Organization (WTO) or countries with
which no relevant treaties or agreements have been signed, COMEXI, on the basis of the technical
report of MICIP's investigating authority, may impose provisional measures.
The decision to impose preliminary measures shall be adopted through a COMEXI resolution,
on the basis of MICIP's technical report, and shall include the factual and legal grounds for the
decision.
In the case of dumping, the provisional measures may take the form of a provisional duty or a
security – by cash deposit or bond – equal to the amount of the anti-dumping duty provisionallyestimated.
In the case of subsidies, the provisional measures may take the form of provisional
countervailing duties guaranteed by cash deposits or bonds equal to the amount of the provisionally
calculated amount of subsidization.
Duty shall be paid on imports of the products subject to investigation, irrespective of the
importer.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 16
The payment of provisional duties may be replaced by a bond or security posted in the form
and subject to the conditions laid down in the customs legislation.
The application of provisional measures shall be limited to as short a period as possible, not
exceeding four months or, on decision of the aut horities concerned, at the request of exporters
representing a significant percentage of the trade involved, to a period not exceeding six months.
When the investigating authority, in the course  of an investigation, examines whether a duty
lower than the margin of dumping would be sufficie nt to remove injury, these periods may be six or
nine months, respectively.
The resolution determining the provisional measure shall be notified to the Customs
Technical Committee by the Ministry of Foreign Trade, Industrialization and Fisheries, for
information and implementation.
An investigation shall be terminated if the investigating authority determines that the
volume of dumped or subsidized imports is negligible or if the margin of dumping or the global level
of subsidization is de minimis , or if the injury caused by the imports in question is negligible.  For
such purposes, the criteria set out in Article 36 [sic]  of this Resolution shall apply.
SECTION IV - INVESTIGATON PERIOD AND EVIDENTIARY ASPECTS
Article 30 – Investigation period.
The investigating authority shall have a maximum of twelve (12) months from the submission
of the application to carry out a dumping or subsidies investigation and to submit a report, containingits conclusions and recommendations, to COMEXI.
Exceptionally, by decision of the investigating authority, this period may be extended by
six (6) months.
Article 31 - Access to the file.
From the initiation of the investigation, any in terested party or anyone who establishes an
interest in the investigation shall have access to  the non-confidential documents which make up the
file and may request the issue of photocopies at his expense.
Sixty (60) days after the closure of the investigation, the file, apart from the confidential
information, shall become public, so that anyone may have access thereto.  In any event, the public
notice mentioned in Article 12 of the Anti-dumping Agreement of the World Trade Organization
(GATT 94) shall be given.
Article 32 - Evidence and information requested or provided during the investigation.
During the investigation period, the investigating authority may request, gather and provide
the evidence it considers pertinent.
The investigating authority may request any ki nd of information, including technical advice,
from the various departments of government, which shall respond as rapidly as possible.  It may also
request any opinion it considers relevant and any act ion conducive to the ascertainment of the facts.
Interested parties may comment on the information.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 17
Likewise, interested parties and all those who demonstrate a legitimate interest in
participating in the investigation may furnish pe rtinent evidence, reports and documents, up to ten
(10) working days before the day on which the investigating authority concludes the investigation.
All documents, forms and other papers introduced must be submitted in Spanish or with an
official Spanish translation.  If these requirements are not satisfied, the documents submitted may be
rejected as evidence by the investigating authority.
If it considers it necessary, the investigating authority may request additional information and
documents at any stage of the investigation.
Article 33 - Confidential information.
Information shall be considered confidential if its disclosure or publication might injure the
competitive position of the enterprise concerned.  A separate file, which may be inspected only by the
competent authorities, shall be op ened for confidential information provided by the applicant, other
interested parties or the authorities.
When confidential information is introduced into the investigation, it must be accompanied by
a non-confidential summary.
If the investigating authority considers that th e documentation introduced as confidential does
not warrant that description, it shall request the provider of the information to waive confidentiality.
If the provider refuses to waive the confidentiality of the information without good cause, the
investigating authority may disregard such information for the purposes of the investigation, just as
when confidential information is provided without a non-confidential summary.
Access to confidential information shall be re stricted to the competent authorities in the
exercise of their functions, in the course of which confidentiality must be duly maintained.
Article 34 - Technical information meeting.
Within five (5) working days of the day follow ing the publication of the preliminary and final
resolutions in the Official Journal, interested part ies may request the holding of technical information
meetings whose purpose shall be to explain the me thods used for determining the margins of dumping
and calculating the subsidies, as well as the determination of injury or threat of injury and the
arguments concerning causality.
Article 35 - Clarificatory hearings.
At any stage of the investigation, the investigating authority, ex officio or upon application by
an interested party, may request the holding of public hearings attended by representatives of the
different interests, for the purpose of clarifying doubtful, obscure or controversial points.
Once convened, a hearing must be held within the next eight (8) days, but the fact that it is
being held shall not interrupt or suspend the course of the investigation or the periods specified for its
various stages.
Once a hearing has been opened, a representative of the investigating authority shall put
forward for discussion the items he considers necessa ry, together with the evidence submitted by the
applicant.  Subsequently, he shall act as moderator and give the floor to the importers, foreign
exporters, domestic producers, industrial users of the product investigated and the consumers or theirG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 18
delegates, in that order.  Each party shall have the floor in turn, twice with respect to the evidence
submitted by the other parties.
At these hearings the rules of confidentiality laid down in this Decree must be respected.The conclusions of the hearing shall be recorded in minutes which shall be signed by the
Head of the Trade Practices and Safeguards Division and by the parties involved.
Article 36 - On-the-spot investigations.
The investigating authority is authorized to visit offices or premises where information
relating to the case is to be found and to check and verify the contents of the documentation and the
evidence submitted in the course of the investigation.
These visits shall include trips to domestic producers and importers of the products subject to
investigation and to producers and exporters of the country of origin or exportation, for the purpose ofverifying the content and truthfulness of the informa tion furnished by the parties, provided that the
enterprises investigated or the interested parties agree thereto.  The enterprises of the exporting
country concerned shall be given sufficient notice of the visit, together with details of the information
to be verified.  If agreement cannot be obtained, the investigating authority shall take its decisions on
the basis of the best information available.
The results of the on-the-spot investigation must be recorded, in summary form, in minutes
signed by the parties concerned.
Article 37 - Best information available.
In the course of the investigation all decisions shall be taken on the basis of the best
information available.  When the investigating authority requires the participation of the applicant or
an interested party in order to verify informatio n provided for the investigation in good time and in
proper form, it shall inform him thereof in advance.  If he does not agree to verification, the
information provided by the other party shall be deem ed to be correct, unless there is evidence to the
contrary.
During the investigation period any interested party may submit its arguments, together with
evidence which, in its opinion, supports those arguments.
Article 38 - Negligible imports and de minimis  conditions.
For the purposes of Articles 21 and 27, the following criteria shall be taken into account:
1.  In the case of dumped imports, the following shall be considered negligible:
The volume of dumped imports from a particular country accounting for less than
3 per cent of imports of that product.
The volume of dumped imports from countries which individually account for less
than 3 per cent of the imports of the like product and collectively represent less than7 per cent of those imports.
2.  In the case of subsidized imports, the following shall be considered negligible:G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 19
The volume of subsidized imports from a particular developed country accounting for
less than 3 per cent of total imports of that product.
The volume of subsidized imports from developed countries which individually
account for less than 3 per cent of imports of the like product and collectively
represent less than 7 per cent of those imports.
The volume of subsidized imports from a particular developing country accounting
for less than 4 per cent of total imports of that product.
The volume of imports from developing countries which individually account for less
than 4 per cent of imports of the like product and collectively represent less than 9 per
cent of those imports.
3.  A margin of dumping of less than 2 per cent, expressed as a percentage of the export
price, shall be considered de minimis .
4.  Subsidies granted to the investigated product shall be considered de minimis  if their
global level calculated on a per unit basis is less than:
- 1 per cent of the value of the product in the case of imports originating in
developed countries;
- 2 per cent in the case of imports originating in developing countries;- 3 per cent in the case of imports originating in the developing countries referred
to in Article 27.11 of the Agreement on Subsidies and Countervailing Measures
of the World Trade Organization.
SECTION V - MUTUALLY AGREED SOLUTIONS
Article 39 - Price undertakings.
The competent authorities of the country of origin or export or the producers or exporters may
express, through the investigating authority, their inte ntion to eliminate or limit the subsidy, revise the
export prices or cease exports to Ecuador, as appropriate, so that the injury caused to the domestic
producers is removed.
The investigating authority may also propose to the interested parties that they submit
statements of intent.
Price undertakings shall not be sought or accepted unless the investigating authority has made
a preliminary affirmative determination of dumping or subsidization and of injury caused by suchpractices.  In the case of subsidies, the consent of the authorities of the exporting country shall be
required with respect to undertakings from exporters.
Article 40 - Content of statements of intent.
The statements of intent must provide the necessary information and expressly authorize the
investigating authority to carry out on-the-spot inves tigations to verify that the undertakings are being
respected.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 20
Article 41 – Procedure with respect to statements of intent.
When statements of intent are submitted, th e investigating authority shall inform the
interested parties of their contents.
To this end, the investigating authority sha ll make available to the parties the documents
containing the proposals submitted for a period of five (5) working days from the date of notification.
When this period has expired, the parties shall have an equal period to submit their comments in
writing.
At the end of this period, COMEXI, on the basis of the technical report submitted by MICIP,
shall accept or reject the offers, in accordance with the country's best interests.
If a statement of intent is accepted, COMEXI shall issue a reasoned resolution empowering
the investigating authority, in the event of non-fulfilment, immediately to re-establish the collection of
provisional duties, where appropriate, and to continue the investigation proceeding.
The resolution accepting a statement of intent shall be published in the Official Journal and
notified to the interested parties.
Statements of intent submitted more than twenty (20) working days after the date of the
preliminary determination shall not be accepted.
The investigating authority may periodically re view the undertakings given, either ex officio
or upon application by a party.
Article 42 - Conciliation meetings.
Up to fifteen (15) working days before the expiration of the period for completing the
investigation, the interested parties may request th e investigating authority to hold a public hearing at
which formulas for settling the dispute and termin ating the investigation may be proposed.  If the
formulas proposed are acceptable, the investigating authority shall adopt them by means of a
resolution and terminate the investigation.
The corresponding resolution shall be published in the Official Journal and notified to the
interested parties.
Requests for conciliation meetings received mo re than twenty (20) working days from the
date of the preliminary determination shall not be considered.
SECTION VI - CLOSURE OF THE INVESTIGATION AND
IMPOSITION OF DEFINITIVE DUTIES
Article 43 - Concluding arguments.
Up to ten (10) working days before the expiration of the period for the investigating authority
to terminate the investigation, the interested parties may submit written arguments that support their
case.
Once this period has expired, no further documents, reports or evidence may be introduced.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 21
Article 44 - Termination of the investigation.
Once the period for concluding arguments has expired and before the expiration of the
investigation period, the investigating authority, on the basis of the evidence and information in the
file, shall draw up the conclusions of the invest igation and submit them to COMEXI for decision.
The definitive decision adopted by COMEXI shall consist in:- The imposition of anti-dumping or countervailing measures and the determination of
their amount;
- the withdrawal of the provisional measures;  and/or
- the termination of the investigation without the imposition of anti-dumping or
countervailing measures.
COMEXI shall have a maximum of fifteen (15) working days from the receipt of the report
to adopt a definitive decision.
Article 45 - Implementation of the COMEXI resolution.
The decision adopted by COMEXI shall be notified by the Ministry of Foreign Trade,
Industrialization and Fisheries to the Customs Technical Committee, for information and
implementation.
The resolution must contain the factual and legal basis for the decision and shall be
published in the Official Journal and notified to the interested parties within five (5) working days of
publication.
CHAPTER V
DEFINITIVE DUTIES
Article 46.  If, once the investigation has been completed, it is determined that definitive
anti-dumping or countervailing duties should be imposed, the corresponding decisions shall specify
their amount, whether equal to or less than the marg in of dumping or the subsidy, according to what is
necessary or sufficient to remove the injury or threat thereof.
The duties shall be assessed in monetary units or ad valorem percentages.
Article 47 - Retroactive application of duties.
The retroactive application of definitive duties may be ordered in the following cases:- On massive imports entered between the date of initiation of the investigation and the
date of application of  provisional duties, subject to a maximum of ninety (90) days.
The existence of massive imports shall be determined by taking into account import
trends during the above-mentioned period as compared with the trend over a period ofthree years prior to the date of  initiation of the investigation or the invitation to hold
consultations.  Moreover, in each particular case the size of the market for the product
investigated and other circumstances, such as a rapid build-up of inventories of the
imported product, shall be taken into consideration.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 22
- In the case of massive imports envisaged in the previous paragraph, countervailing
duties may be imposed only on products which receive subsidies paid or granted in a
manner inconsistent with the provisions of the WTO Agreement on Subsidies and
Countervailing Measures.  Similarly, anti-dumping duties on massive imports may beimposed when the investigating authority determines for the dumped product in
question that there is a history of dumping which caused injury or that the importer
was, or should have been, aware that the exporter practiced dumping and that such
dumping would cause injury.
- On imports entered during the ninety (90) days preceding the establishment of
provisional duties, in the case of non-fulfilment of undertakings given in connectionwith statements of intent.  The period of application shall not exceed the duration of
the period of non-fulfilment.
Article 48 - Application and duration of anti-dumping and countervailing duties.
An anti-dumping or countervailing duty shall be automatically eliminated five (5) years after
its imposition, unless the reasons for imposing it still exist.
The customs shall apply the duties in accorda nce with the resolution imposing them, taking
into account the provisions relating to the collection and the procedures applicable to the levying ofcustoms duties.
In any event, an anti-dumping or countervailing duty shall remain in force only as long as and
to the extent necessary to counteract the dumping or subsidy which is causing injury.
Article 49 - Review of duties.
After the first year of imposition of definitive duties, the investigating authority may,
ex officio or upon application by an interested party, order the investigation to be reopened in order to
review the duties, if it considers that the conditions which led to their being imposed have changed.
The resolution ordering the investigation to be reopened shall be equivalent to that adopting
the preliminary decision.  The period between the resolution on reopening and the resolution adopting
a new termination of the investigation shall not exceed five (5) months.  Any anti-dumping or
countervailing duties that have been imposed shall be applied in full until the investigation is
terminated.
Article 50 - Margin of anti-dumping or countervailing duties.
In submitting its conclusions, the investigat ing authority shall be responsible for
recommending the amount of the anti-dumping or countervailing duties applicable, taking into
account the difference between the normal value and the export price of the product or the amount ofthe subsidy, as the case may be, and the level of injury caused to the domestic industry.
In no case may the anti-dumping or countervailing duties be greater than the margin of
dumping or the amount of the subsidy.
It is desirable that the amount of the duty be less than the full margin of dumping or the total
amount of the subsidy if such lesser duty would be  adequate to remove the injury to the domestic
industry, and that the imposition be permissive in the territory of all members.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 23
Article 51 - Excess amounts and refunds.
The whole amount paid or the overpayment shall be refunded to the importer, as promptly as
possible, or the security shall be returned or only partially collected when:
Upon the termination of the investigation it is concluded that there are no grounds for levying
definitive anti-dumping or countervailing duties, or when it is concluded that the margin of the
definitive anti-dumping or countervailing duties should be less than the amount of the provisional
duties.
Any refunds shall be made by the customs authority in accordance with the procedures
established for that purpose.
If the definitive anti-dumping or countervailing duty is greater than the provisional duty paid
or payable or the amount estimated for the purpose of determining the security, the importer shall not
be required to pay the difference.
When the decision to impose definitive measures is based on the existence of threat of injury
or material retardation (the injury not yet having occurred), definitive anti-dumping or countervailing
duties may be established only from date of determination of the existence of threat of injury or
material retardation in the establishment of a domestic industry and the provisional duties shall berefunded and the corresponding security released.
Article 52 - Importation.
The application of anti-dumping or counterva iling duties shall not prevent the importation of
the goods concerned into Ecuadorian territory.
Article 53 - Anti-avoidance measures.
Parts or components of a product like to that on which definitive duties are imposed, intended
for assembly or finishing operations in Ecuador, may be subjected to the payment of provisional or
definitive duties.
TITLE IV - SAFEGUARD MEASURES
CHAPTER I
CONDITIONS
Article 54
The investigating authority may apply a safeguard measure to a product only if it has
determined that the product is being imported into it s territory in such increased quantities, absolute or
relative to domestic production, and under such conditions as to cause or threaten to cause serious
injury to the domestic industry that produces like or directly competitive products.
Safeguard measures shall be applied to the product imported irrespective of its source.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 24
DETERMINATION OF SERIOUS INJURY OR THREAT THEREOF
Article 55
In the investigation to determine whether incr eased imports have caused or are threatening to
cause serious injury to a domestic industry, the investigative authority shall evaluate all relevant
factors of an objective and quantifiable nature having a bearing on the situation of that industry, in
particular, the rate and amount of the increase in imports of the product concerned, in absolute and
relative terms, the share of the domestic market taken by increased imports, changes in the level of
sales, production, productivity, capacity utilisation, inventories, prices, profits and losses, cash flow
and employment.
A determination of serious injury or threat of serious injury to the domestic industry shall not
be made unless the investigation demonstrates, on the basis of objective evidence, the existence of a
causal link between increased imports of the product concerned and serious injury or threat thereof.
When factors other than increased imports are causing injury to the domestic industry at the sametime, such injury shall not be attributed to increased imports.
Article 56 - Period of review of serious injury or threat thereof.
The review of serious injury or threat thereof shall comprise a period covering imports of the
like product in the last twelve (12) months for which information is available.  The investigating
authority may modify such period or extend it to cover imports entered after the initiation of the
investigation.
CHAPTER II
PROCEDURES
SECTION I - INITIATION OF THE PROCEEDING
Article 57 - Initiation of the proceeding.
Safeguard investigation proceedings shall be initiated ex officio or upon application by a
party.
Article 58 - Initiation ex officio.
The investigating authority may initiate an investigation ex officio if there is evidence to
justify a presumption of injury to the domestic industry or threat thereof through an increase or
possible increase in imports.
Article 59 - Initiation at the request of a major proportion of the domestic industry.
The investigating authority may initiate a proceeding if so requested by domestic producers
representing a major proportion of domestic production.  The application may also be made by an
association of producers which, for the purposes of the application, represents a major proportion of
domestic production.
Representatives of the domestic industry injured by the imports which it is requested should
be investigated and those of the producers' associations likewise affected shall be entitled to apply for
the initiation of an investigation.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 25
For the submission of an application a major proportion of domestic production shall be
considered to be at least 25 per cent of the production of the like or directly competitive product.
Article 60 - Application requirements.
The application must be submitted in writing, using the forms prepared for the purpose and
issued to the interested party by the investigat ing authority, and the requisite documents shall be
attached.  The application for the initiation of an investigation and the imposition of a safeguard
measure shall contain at least the following particulars:
- Designation of the investigating authority to which the application is submitted;- the identity of the applicant, name or business name and domicile of the applicant
and, where appropriate, his agent;
- the activity in which the producers concerned are engaged;- a description of the product imported, indicating the specifications and characteristics
permitting comparison with the domestic product, and its tariff heading;
- the volume and value of imports showing whether there has been a significant
increase in imports in absolute terms or a relative increase in terms of domestic
production or consumption;
- the import prices, in particular whether there is significant underpricing as compared
with the prices of the like or directly competitive domestic product;
- the countries of origin or export;- the name and domicile of known importers and exporters;- the determination of serious injury to production or threat thereof caused by a
substantial increase in imports of the product concerned;
- the evidence it is intended to adduce and arguments in support of the need to apply a
safeguard measure;
- identification of the confidential documentation and summary or non-confidential
version of such documentation;
- a study justifying the presumption of injury to the domestic industry due to
importation of the goods subject to investigation under conditions such that they
cause or threaten to cause injury to the like domestic product;
- the place for receiving notifications;- the place and date of submission of the application;
- the signature of the applicant or legal representative of the domestic industry or of the
association concerned.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 26
All the information on volumes and values subm itted to the investigating authority by the
applicant enterprise shall pertain to the previous four years and to the part of the current year of the
investigation that has elapsed so far.
Article 61 - Submission, acceptance an d withdrawal of the application.
For these purposes, the provisions of Articles 19, 20, 21 and 25 of this instrument shall be
applied, as appropriate.
SECTION II - EVALUATION OF THE APPLICATION AND
INITIATION OF THE INVESTIGATION
Article 62 - Evaluation of the application for imposition of safeguards.
The investigating authority shall have thir ty (30) working days from acceptance of an
application for the imposition of safeguard measures to evaluate the application and establish whetheran investigation should be initiated.
When, in the opinion of the investigating authority, there is good reason to do so, the above
period may be extended by up to fifteen (15) working days.
Article 63 - Appropriateness of the initiation of an investigation.
It shall be appropriate to order the initiation of an investigation for the application of
safeguards, if:
- It is established that the application is submitted on behalf of a major proportion of
the domestic industry;
- there is evidence of a substantial increase or possible increase in imports, serious
injury to the domestic industry or threat thereof, and a causal link between the injury
and the increased imports.
Article 64 - Initiation of the investigation.
For this purpose, the provisions of Articles 21 to 26 of this instrument shall apply, as
appropriate.
The investigating authority shall also immedi ately communicate the text of the resolution,
together with the related documentation, except for the confidential information, to the Committee on
Safeguards of the WTO.
SECTION III - INVESTIGATION PERIOD AND
EVIDENTIARY ASPECTS
Article 65 - Investigation period and evidentiary aspects.
For these purposes, the provisions of Articles 28 to 35 of this instrument shall apply, as
appropriate.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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SECTION IV - CLOSURE OF THE INVESTIGATION AND
IMPOSITION OF  A DEFINITIVE SAFEGUARD
Article 66 - Arguments, termination of  the investigation and final decision.
For these purposes, Articles 41 to 43 of this instrument shall apply, as appropriate.  In this
case, the definitive decision shall consist in:
- The imposition of a safeguard;- the withdrawal of the provisional safeguard;  and/or- the termination of the investigation without the imposition of a safeguard measure.Article 67 - Notification and consultation procedure.
If COMEXI decides to impose a definitive safeguard, it shall immediately be notified to the
Committee on Safeguards of the WTO when the country concerned is a member of the organization,
to the government of the exporting country and to the interested parties.
Furthermore, the resolution shall be published in a newspaper with a large circulation in
Ecuador, for the information of all concerned.
Unless a decision has been made to initiate an investigation, the authorities shall avoid any
publicizing of the application for an investigation to be initiated.
For publication, notification and communication purposes and for holding the consultations
provided for in the Agreement on Safeguards, the in vestigating authority shall have a period of ten
(10) days from the date of issue of the resolution.
The same procedures shall be followed where a provisional safeguard measure is concerned.In this case, the Committee on Safeguards of the WTO shall be notified before the publication
of the measure and the consultations shall be initiated as soon as it is applied.
SECTION V - APPLICATION OF PROVISIONAL MEASURES
Article 68 - Provisional measures and their duration.
During the investigation and in critical circum stances where delay would cause serious injury,
the investigating authority, ex officio or upon application by a party, may recommend to COMEXI
that a provisional safeguard measure be applied, on the basis of evidence showing that increased
imports have caused or are threatening to cause serious injury to the domestic industry.
In this case, the provisional measure must be adopted by resolution within twenty
(20) working days of the date on which the inve stigating authority submits its recommendation to
COMEXI .
The provisional measure shall consist in the application of a tariff increase.
COMEXI shall issue a resolution concerning the imposition of provisional measures,
indicating the factual and legal basis for the decision, which shall be notified to the applicant andG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 28
communicated to the other interested parties.  The Committee on Safeguards of the WTO shall be
notified before the measure is applied.
The Ministry of Foreign Trade, Industrialization and Fisheries shall notify the decision to the
Customs Technical Committee, for implementation of the measure.
Once the measure has been applied, the consultation procedure shall be initiated in
accordance with the provisions of Article 12.4 of the WTO Agreement on Safeguards.
In the resolution it shall be indicated that the duration of the provisional measure shall not
exceed two hundred (200) days.
If as a result of the investigation it is determined that there is no reason to impose definitive
safeguard measures, the sums paid by the importers under any provisional measure which may have
been adopted shall be immediately reimbursed.
SECTION VI - DEFINITIVE MEASURES
Article 69 - Definitive safeguard.
If on the basis of the investigation it is determined that a definitive safeguard should be
imposed, the corresponding decision shall specify the type of measure to be adopted.
The measures may consist of a quantitative restriction or in the application of a tariff increase.If the measure takes the form of a quantitative restriction, imports shall be guaranteed in an
amount equivalent to the average for the least three (3) years.
Safeguard measures shall not be applied against a product originating in a developing country
Member of the WTO as long as its share of imports of the product concerned in Ecuador does not
exceed 3 per cent, provided that developing country Members of the WTO with less than 3 per cent
import share collectively account for not more than 9 per cent of total imports of the product
concerned.
Article 70 - Application and duration of the measures.
If the measure consists of a tariff increase, the Customs Technical Committee, after notifying
the Ministry of Foreign Trade, Industrialization and Fisheries, shall apply the duties in accordancewith the COMEXI resolution, taking into account th e provisions relating to the collection and the
procedures applicable to the levying of customs tariffs.
If the measure consists of a quantitative restriction, it shall be applied and administered by the
entity or organ designated for that purpose, according to the nature of the product, as notified by theMinistry of Foreign Trade, Industrialization and Fisheries.
The measures shall be temporary and shall be applied for as long as necessary to prevent or
remedy the threat or serious injury.  The period of application shall not exceed four (4) years, subject
to extension.
The period of four years mentioned in the previous paragraph may be extended provided that
the investigating authority has determined, in conformity with the procedures established for the
imposition of the initial safeguard, that the safeguard measure continues to be necessary to prevent orG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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remedy serious injury and that there is evidence that the industry is adjusting, and provided that the
relevant provisions of the Agreement on Safeguards of the WTO are observed.
If the definitive safeguard measure is applied for over one (1) year, a formula for its
progressive liberalization, at regular intervals, during the period of application must be taken into
account.
The total period of application of a safeguard measure including the period of application of
any provisional measure, the period of initial appl ication and any extension thereof, shall not exceed
eight years.
No safeguard measure shall be applied again to the import of a product which has been
subject to such a measure for a period of time equal to that during which such measure had been
previously applied, provided that the period of non-application is at least 2 years.
Notwithstanding the provisions of the previous paragraph, a safeguard measure with a
duration of 180 days or less may be applied again to the import of a product in the following
circumstances:
- If at least one year has elapsed since the date of introduction of a safeguard measure
on the import of that product;  and
- if such a safeguard measure has not been applied on the same product more than
twice in the five-year period immediately preceding the date of introduction of the
measure.
Article 71 - Review of measures.
The investigating authority, ex officio or upon application by an interested party, may reopen
the investigation in order to review the definitive measures, if it considers that the conditions which
led to their being imposed have changed.
When an investigation has been reopened, the procedures concerning investigations and the
adoption of measures laid down in this instrument shall be followed.
Article 72 - In the case of agricultural products designated for the use of special safeguards in
the schedule of bindings in the WTO, the provisions of Article 5 of the WTO Agreement on
Agriculture shall be taken into account, subject to the application of the provisions of this resolution
relating to safeguards.
Article 73 - In any stage of the investigation process, the investigating authority may set up
interinstitutional working parties with the participation of representatives of the public and private
sectors, as required and according to the nature of the product investigated.
Article 74 - All public sector entities shal l supply, in good time, any information or
documentation requested by the investigating authority for the purpose of acquiring data needed to
conduct an unfair practices or safeguard investigation.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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TITLE V
APPLICATIONS TO THE ANDEAN COMMUNITY
Article 75 - Applications submitted in accordance with the arrangements of the Andean
Community.
Any application to be submitted to the General Secretariat of the Andean Community for the
initiation of an investigation and the application of anti-dumping duties, countervailing duties or
safeguard measures to a product originating in the Andean subregion must be channelled through the
investigating authority of Ecuador, subject to comp liance with all the formal requirements established,
for each case, in this resolution.
Article 76 - Acceptance for processing.
Within fifteen (15) working days of receiving the corresponding documentation, the
investigating authority shall verify compliance with the application requirements and, if these have all
been met, shall immediately transmit the file to the General Secretariat of the Andean Community.  If
the application does not meet the requirements, it shall be returned to the applicant for revision.
Article 77 - Implementation of the measure.
Once the final result of the investigation by the General Secretariat of the Andean Community
is known, the Ministry of Foreign Trade shall notify the Customs Technical Committee for
implementation of the measure, if the General Secretariat has so determined.
TITLE VI - FINAL PROVISIONS
CHAPTER I
ASSISTANCE FOR INTERESTED PARTIES IN DUMPING,
SUBSIDIES AND SAFEGUARD INVESTIGATIONS
Article 78 - Assistance for interested parties.
The various departments of government shall provide interested parties, especially small
businesses, with any collaboration and assistance that might be useful for the purposes of the
investigation.
CHAPTER II
ASSISTANCE FOR PRODUCERS AND EXPORTERS
Article 79 - Investigations of Ecuadorian exports for dumping, subsidies or safeguards.
When an Ecuadorian producer or exporter is aware that an investigation of his products for
dumping, subsidies or safeguards has been initiated abroad, he may call upon the investigating
authority of the Ministry of Foreign Trade, Industrialization and Fisheries for technical and legalassistance in defending his interests.
The technical and legal assistance shall include guidance and collaboration in obtaining
information, advice on the completion of forms and questionnaires, assistance in the event ofG/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 31
on-the-spot investigations by foreign authorities and, in general, any help which the Ministry of
Foreign Trade, Industrialization and Fisheries, through its investigating authority, is able to provide.
Article 80 - Report to COMEXI.
If investigations of Ecuadorian products for dumping, subsidies or safeguards are initiated
abroad, the investigating authority shall prepar e reports on the substantive elements of the
investigations, the measures adopted, the producers or exporters, the results obtained and the current
situation.  COMEXI shall take the appropriate decisions on the basis of these reports.
The investigating authority may set up committees to monitor investigations of Ecuadorian
products for dumping, subsidies or safeguards initiated abroad.
The committees shall consist of representatives of the chambers or associations of the
industry to which the producer or exporter investigated belongs and of the investigating authority.
The committees shall regularly submit reports and recommendations to COMEXI.
CHAPTER III
JUDICIAL REVIEW
Article 81 - Judicial review.
Appropriate legal action may be taken in the competent administrative courts against
definitive decisions determining whether or not anti-dumping or countervailing duties should be
applied.
CHAPTER IV
POWERS
Article 82.  For the application of this instru ment, the following powers shall be taken into
account:
(a) Department responsible for the administration of unfair trade practices and
safeguards:
- Conduct investigations of unfair international trade practices and safeguards;- accept or reject applications for dumping, subsidies or safeguard
investigations;
- evaluate applications for dumping, subsidies or safeguard investigations and
decide on the initiation of investigations;
- carry out preliminary evaluations in investigations for dumping, subsidies or
safeguards and propose the application of provisional countervailing duties,
where appropriate;
- communicate, publish and notify all of the decisions and resolutions issued in
the course of dumping, subsidies and safeguard investigations or in
connection therewith;G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
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- prepare technical studies for consideration by COMEXI;
- prepare official forms containing questionnaires;
- gather evidence, make on-the-spot investigations and take other appropriate
action in its capacity as investigating authority.
(b) Head of the Trade Practices and Safeguards Division:
- Advise on the implementation and development of dumping, subsidies and
safeguard investigations;
- submit to COMEXI technical reports on the results of dumping, subsidies or
safeguard investigations.
(c) Foreign Trade and Investment Council - COMEXI:
- Impose provisional or definitive countervailing or anti-dumping duties and
safeguard measures;  and
- rule on conciliation formulas proposed by the parties.
(d) Minister of Foreign Trade, Industrialization and Fisheries;
- Accept or reject offers made in statements of intent;
- notify to the Customs Technical Committee the resolutions adopted by
COMEXI in connection with the application of anti-dumping or
countervailing duties and the application of provisional or definitive
safeguards, for appropriate implementation.
(e) Organ competent for customs matters:
- Apply anti-dumping or countervailing duties and safeguard measures at
importation, in compliance with the resolutions adopted by COMEXI, subject
to notification of the Ministry of Foreign Trade.
Final provisions- If the text of this instrument requires any clarification, recourse shall be had to the
corresponding agreements of the World Trade Organization;
- these rules shall take precedence over any other previous rule on the subject, of equal
or lower rank, and shall enter into force upon promulgation in the Official Journal,
publication being ordered.
(signed) Werner Moeller Freile
Chairman, COMEXI
(signed) Carlos Bañomera B.
Secretary, COMEXI.G/ADP/N/1/ECU/1/Suppl.1, G/ SCM/N/1/ECU/1/Suppl.1,
G/SG/N/1/ECU/2/Suppl.1
Page 33
I certify that these rules and procedures to be followed for the application of measures to
prevent and counteract the adverse effects of unfair trade practices or increased imports under
conditions such as to cause or threaten to cause serious injury to domestic industry were unanimously
approved by the Foreign Trade and Investme nt Council in ordinary session on Tuesday,
17 March 1998.
Quito, 18 March 1998.
(Signed) Dumany Sánchez Neira
Under-Secretary of Foreign Trade and Integration (E),
Secretary, COMEXI.
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