WORLD TRADE
ORGANIZATIONG/ADP/N/1/DOM/3
G/SCM/N/1/DOM/2G/SG/N/1/DOM/2
22 May 2002
(02-2820)
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
DOMINICAN REPUBLIC
The following communication, dated 2 May 2002, has been received from the Permanent
Mission of the Dominican Republic.
_______________
The Permanent Mission of the Dominican Repub lic to the United Nations Office and Other
International Organizations at Geneva, in accordance with Article 18.5 of the Agreement on
Implementation of Article VI of the GATT 1994, Article 32.6 of the Agreement on Subsidies and
Countervailing Measures and Article 12.6 of the Ag reement on Safeguards, has the honour to enclose
the Law on Unfair Trade Practices and Safe guard Measures of the Dominican Republic.
_______________
WHEREAS the Agreement Establishing the World Trade Organization (WTO), ratified by the
Congress of the Dominican Republic on 12 January 1995 and promulgated under No. 2-95 of
20 January 1995, includes rules and disciplines relating to the application of anti-dumping duties, the
Agreement on Subsidies and Countervailing Measures and the Agreement on Safeguards, so thatMembers of the Organization may take action in th e event of unfair foreign trade practices and adopt
precautionary measures against increased imports that cause or threaten to cause serious injury to
domestic production;
WHEREAS it is the State's res ponsibility to establish the basic rules for action by economic
agents in order to guarantee free market competit ion and prevent or avoid di stortions caused by unfair
trade practices, and to adopt temporary provisions  in order to safeguard domestic production against
sudden surges in imports;
WHEREAS in order to invoke, within the framewo rk of the Agreement Establishing the World
Trade Organization (WTO), the aforementioned Agreem ents relating to unfair trade practices and the
Agreement on Safeguards, it is necessary to have domestic rules on the subject that are consistent with
these Agreements;G/ADP/N/1/DOM/3
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HAS ENACTED THE FOLLOWING LAW:
LAW ON UNFAIR TRADE PRACTICES AND SAFEGUARD MEASURES
TITLE I
GENERAL PROVISIONS
Article 1. –  Protection against unfair trade practices that threaten to cause or cause injury to
national production, artificially distort trade flows or jeopardize the confidence that constitutes the basis
of free trade is declared a matter of national interest.
Article 2. –  The purpose of this Law is to establish rules and procedures to prevent or remedy
any injury to a domestic industry that may be caused by unfair foreign trade practices and to provide for
appropriate temporary measures in the event of imports in such increased quantities and under suchconditions as to cause or threaten to cause serious injury to domestic producers of like products.
Article 3. –  Unfair foreign trade practices shall be  deemed to be the introduction into the
country of goods at prices less than their normal value, i.e. at dumped prices, or at subsidized prices in
their country of origin or provenance that actually cause or threaten to cause material injury to adomestic industry.  Dumped or subsidized imports shall be subject to anti-dumping or countervailing
duties, as appropriate, under the conditions and in accordance with the procedures stipulated in this
Law and its regulations.
Article 4. –  Pursuant to this Law, safeguard measur es may be established where a given product
is being imported in such increased quantities and unde r such conditions as to cause or threaten to cause
serious injury to a domestic industry producing like or directly competitive goods.
Article 5. –  The provisions of this Law are public policy and of general application, without
prejudice to those of international treaties or conv entions to which the Dominican Republic is party.
Article 6. –  Any situation not covered by this Law or its regulations shall be regulated in
conformity with the Agreement on Implementation of Article VI (Anti-Dumping or AD Agreement), the
Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the Agreement on
Safeguards of the World Trade Organization (WTO).
Paragraph. –  Procedural matters or particular situations that are not clearly and specifically
covered by the aforementioned WTO Agreements shall be regulated on a supplementary basis by
administrative or other legislation of the Dominican Republic.
Article 7. –  The Commission for the Regulation of Unfair Trade Practices and Safeguard
Measures, covered by Title V of this Law and hereinafter referred to as "the Commission", shall be thecompetent national authority respons ible for investigations required under this Law and its regulations
and for determining the application of countervailing or anti-dumping duties or safeguard measures, as
appropriate.G/ADP/N/1/DOM/3
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TITLE II
UNFAIR TRADE PRACTICES
CHAPTER I
DUMPING
Article 8. –  An import shall be deemed to be at a dumped price where the price of the imported
product is less than the normal value of a like product when  destined, in the ordinary course of trade, for
consumption in the exporting country or th e country of origin, as the case may be.
Article 9. – For the purposes of this Law:
(a) " Normal value " shall mean the comparable price actually paid or payable for a product
similar to that imported, in the ordinary c ourse of trade, into the Dominican Republic
for consumption or use in the domestic mark et of the exporting country or the country
of origin, as the case may be.  The comparison may be made with the price in the
country of origin, where, for example, the products are merely transhipped through the
exporting country, or the products are not produc ed or there is no comparable price for
them in the exporting country.
(b) " Like product " shall mean a product which is alike in all respects to the product in
question, or in the absence of such a pr oduct, to another product which, although not
alike in all respects, has characteristics closely resembling those of the product inquestion.
(c) " Export price " shall mean, without prejudice to Arti cle 12 of this Law, the comparable
price actually paid or payable for the product sold for export to the Dominican
Republic.
Article 10. –  Where there are no sales of the product under consideration in the ordinary
course of trade in the domestic market of the exporting country, or where such sales do not permit
proper comparison because of the particular market situation or the low volume of the sales in the
domestic market of the exporting country, the normal value shall be determined on the basis of either:
(a) The highest, representative and comparable price of the like product when exported to a
third country;
(b) the cost of production of the like product in the country of origin plus a reasonable
amount for administrative and selling costs and for profits;  in calculating the profit
margin, the Commission shall strictly follow the guidelines set out in the Agreementon Implementation of Article VI of the GATT 1994.
First paragraph. –  For comparison, the Commission shall use the selling price in third-country
markets or a constructed value calculated on the basi s of the production cost, provided that the value of
sales in the domestic market of the exporting country accounts for five (5) per cent or more of total sales
of the product when exported to the Dominican Republic.  However, the Commission may apply a
lower ratio where there is evidence that the volume of sales in the domestic market is sufficient for
proper comparison.G/ADP/N/1/DOM/3
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Second paragraph. –  To establish the constructed price as indicated in the previous paragraph,
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 accountingprinciples of the exporting country and reasonably reflect the costs associated with the production and
sale of the product under investigation.
Article 11. –  In cases where there is no export price or where the export price appears to be
unreliable because there is clear evidence of association or an arrangement between the exporter and
the importer, the export price may be constructed on the basis of the price at which the imported
products are first sold to a buyer on the local market.  If the products are not resold locally to anindependent buyer or are not resold in the condition in which they were imported, the price shall be
calculated on such reasonable basis as the Commission may determine.
Article 12. –  The margin of dumping shall be determined by comparing the export price and the
normal value of the product at the same level of trade, normally at the ex-factory level, and in respectof sales made at as nearly as possible the same time.  In comparing the export price and the normal
value, the Commission shall make allowance for:
(a) Differences affecting price comparability, including differences in conditions and
terms of sale, taxation, levels of trade, quantities, physical characteristics and anyother differences that can be demonstrated by the Commission to affect price
comparability;  as some of the above factors may overlap, the Commission shall
ensure that they do not duplicate adjustments that have been already made under this
Article;
(b) costs, including duties and taxes, incurred between importation and resale, and profits
accruing;  if in these cases price comparability has been affected, the Commission
shall establish the normal value at a level of trade equivalent to that of the constructed
export price, or shall make due allowance for the factors specified in the previous
paragraph.
Article 13. –  In calculating the normal value, th e Commission may exclude sales in the
domestic market or export sales to a third country at prices that are lower than the fully allocated
production costs plus an amount for administrative and selling costs.  It may do so only on condition
that:
(a) Such sales have been made over an extended period of time (normally one year);
(b) the average selling price in the domestic market is lower than the weighted average
per unit cost for the specified period, or the volume of sales at prices lower than the
per unit costs exceeds twenty (20) per cent of the total;
(c) the costs have not been recovered within a reasonable period of time.
Paragraph. –  If the prices which are below the costs at the time of sale are above the
weighted average costs for the period of investigation, such prices shall be considered to provide for
recovery of costs within a reasonable period of time.
Article 14. –  When price comparison requires a conversion of currencies, the conversion shall
be made using the rate of exchange on the date of sale, except where a sale of foreign currency on
forward markets is directly linked to the export sale involved, in which case the rate of exchange inG/ADP/N/1/DOM/3
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the forward sale shall be used.  Normally, the date of sale shall be the date of contract, purchase order,
order confirmation, or invoice, whichever establishes the material terms of sale.
Article 15. –  For products imported from countries deemed by the Commission to be
non-market economies, the normal value shall be equivalent to the selling price for a like product
designed for domestic consumption in a third country with a market economy at a comparable level of
development, which may be regarded as a substi tute for the country with a centrally planned
economy.  If for any reason the selling price cannot be established as specified above, the normal
value may be regarded as equivalent to the export price from the substitute country to a third country
or the constructed selling price for consumption in the substitute country's domestic market.
CHAPTER II
SUBSIDIES
DETERMINATION OF SUBSIDIES
Article 16. –  The Commission shall impose countervailing duties equivalent to the margin of
subsidy where an investigation into the specific subsidy granted to imported products in the country of
origin determines that such imports  threaten to cause or cause injury to a domestic industry and there
is a causal relationship between the threat of injury or injury and the subsidized imports.
First paragraph. –  For the purposes of this Law, merchandise shall be deemed to be
subsidized where there it is demonstrated that the government of the country of origin or export, or, in
the absence thereof, any government agency or private entity appointed by the State, has made adirect or indirect financial contribution of any kind, provided any form or income or price support for
the exported merchandise, foregone any revenue that is otherwise due or has provided goods or
services under special terms, thereby conferring a benefit on the exporter.
Second paragraph. –  The following shall be considered subsidies for the purposes of this
Law:
(a) The provision by governments of direct subsidies to a firm or an industry contingent
upon export performance;
(b) mechanisms for the granting of foreign currency or any similar practices which
involve a bonus on exports;
(c) internal transport and freight charges on export shipments, provided or mandated by
the authorities, on terms more favourable than for domestic shipments;
(d) the direct or indirect provision by governments or their agencies of imported or
domestic goods or services for use in the production of goods to be exported or sold in
the domestic market on terms or conditions more favourable than those for the
provision of like goods or services, if such terms or conditions are more favourable
than those commercially available on world markets to their exporters;
(e) the full or partial exemption, remission or deferral, specifically related to exports, of
direct taxes or social welfare charges pa id or payable by industrial or commercial
enterprises;G/ADP/N/1/DOM/3
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(f) the exemption, remission or deferral of cumulative indirect taxes on goods or services
used in the production of goods destined for export in excess of the exemption,
remission or deferral of like taxes on like goods when sold in the domestic market;however, such exemption, remission or deferral shall not be considered a subsidy
when the taxes that are the subject of such measures are applied to goods physically
incorporated, making normal allowance, in the goods to be exported;
(g) the remission or drawback of import charges in excess of those levied on imported
goods that are physically incorporated in the good exported, making normal allowance
for waste;  in particular cases, however, a firm may use a quantity of home marketgoods equal to, and having the same quality and characteristics as, the imported goods
as a substitute for them in order to benefit from this provision if the import and the
corresponding export operations both occur within a reasonable period of time, which
shall not normally exceed two (2) years;
(h) the provision by governments or special institutions controlled by governments of
export credit guarantee or insurance programmes, of insurance or guarantee
programmes against increases in the cost of exported goods or of exchange risk
programmes, at premium rates which are manifestly inadequate to cover the long-term
operating costs and losses of the programmes;
(i) the grant by governments or special institutions controlled by and acting under the
authority of governments of export credits at rates below those which they actually
have to pay for the funds so employed or would have to pay if they borrowed on
international capital markets in order to obtain funds of the same maturity, under thesame credit terms and denominated in the same currency as the export credits;  or the
payment by them of all or part of the costs incurred by exporters or financial
institutions in obtaining credits, in so far as these are used to secure a material
advantage in export credit terms;
(l) any other benefits, advantages and measures as may be determined by the
Commission in conformity with the implementing regulations of this Law.
Third paragraph. –  A measure shall be deemed to confer a benefit where it provides
conditions more favourable than those normally available on the market.  The use of multiple
exchange rates in the country of origin or export  shall be considered a subsidy where it confers a
benefit on the exporter.
Article 17. –  The amount of the subsidy shall be calculated in monetary units or  ad valorem
percentages per unit of the subsidized product imported.
CHAPTER III
DUMPING, SUBSIDIES AND SAFEGUARDS
DETERMINATION OF INJURY AND THREAT OF INJURY
Article 18. –  For the purposes of this Law, "material injury"  shall mean the adverse impact
on a domestic industry of dumped imports or imports covered by any kind of specific subsidy within
the meaning of the Law and its regulations.G/ADP/N/1/DOM/3
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Article 19. –  For the purposes of this Law, "threat of injury"  shall mean a clearly foreseen and
imminent risk of material injury to a domestic industry.
Article 20. –  Determination of the existence or threat of material injury through the effects of
dumping or subsidization shall be based on positive evidence and involve an objective examination of:
(a) The volume of the dumped or subsidized imports;(b) the effect of such imports on prices of like products in the Dominican Republic;(c) the impact of dumped or subsidized imports on the domestic industry.Article 21. –  Anti-dumping and countervailing duties may be imposed where the
Commission's investigation has found that:
(a) There has been a significant increase in imports at dumped or subsidized prices, either
in absolute terms or relative to domestic production or consumption;
(b) imports are entering at a price below that of the like domestic product and such
imports have in some way depressed or prevented an increase in the price of the like
domestic product;
(c) this causes injury to the domestic industry or threatens to cause injury to a domestic
industry.
Paragraph. –  One or several of these factors cannot necessarily give decisive guidance.
Article 22. –  To determine the impact of dumped or subsidized imports on the domestic
industry producing like goods, the Commission shall examine all relevant economic factors and
indices, including:
(a) Actual and potential decline in production, sales, market share, profits, productivity,
return on investments, utilization of installed capacity, inventories and employment;
(b) factors affecting prices on the domestic market;  and possibly
(c) actual or potential negative effects on cash flow and ability to raise the capital needed
for adjustment.
Paragraph. –  The above list of factors and indices is not exhaustive, nor can one or several of
these factors or indices necessarily give decisive guidance.
Article 23. –  In making a determination regarding the existence of a threat of material injury,
the Commission shall consider factors such as:
(a) The nature and likely trade effect(s) of the subsidy or subsidies under investigation;(b) a rate of increase of dumped or subsidized imports indicating the likelihood of
substantially increased imports in the very near future;G/ADP/N/1/DOM/3
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(c) freely disposable, or an imminent substantial increase in, capacity of the exporter
indicating the likelihood of substantially increased dumped or subsidized exports to
the Dominican market, taking into account the availability of other export markets toabsorb the possible increase in exports;
(d) whether imports are entering at prices that may have a significant depressing or
suppressing effect on domestic prices and would be likely to increase demand for
further imports;
(e) inventories of the investigated product.Paragraph. –  No one of the above factors will by itself necessarily be sufficient to make a
final determination.
Article 24. –  For the purposes of applying safeguard measures, the Commission shall
understand "serious injury" to mean a significant overall impairment in the position of a domestic
industry.  "Threat of serious injury" shall be understood to mean serious injury that is clearly
imminent and based on facts and not merely on allegation, conjecture or remote possibility.
Article 25. –  In relation to anti-dumping investigations and the determination of subsidies,
"domestic industry" shall mean all domestic producers of like products;  or a proportion of those
domestic producers whose collective output accounts for at least fifty (50) per cent of the total
domestic production of such products.
Paragraph. –  For the purposes of applying safeguard measures, "domestic industry" shall
mean all domestic producers of like or directly competitive goods;  or a proportion of those domestic
producers whose collective output of like or directly competitive products accounts for at least
fifty (50) per cent of the total domestic production of processed goods.
Article 26. –  Where producers in the domestic market are related to the exporters or importers
or it is established that they themselves are importers of the product under investigation or of a like
product from other countries, the term "domestic industry" may exclude such producers and shall beinterpreted as referring to the rest of the producers.
First paragraph. –   Domestic producers and exporters may be deemed to be related where:
(a) One of them directly or indirectly controls the other;(b) both of them are directly or indirectly controlled by a third person;(c) together they directly or indirectly control a third person, provided that there are
grounds for believing or suspecting that the effect of the relationship is such as tocause the producer concerned to behave differently from non-related producers.
Second paragraph. –  For the purposes of this Article, one person shall be deemed to control
another when the former is legally or operationally in a position to exercise restraint or direction over
the latter.
Article 27. –  The Commission may deem injury to exist even where fifty (50) per cent or
more of the domestic industry is not injured, in cases where the latter can be divided into two or moreG/ADP/N/1/DOM/3
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competitive markets and the producers within each market may be regarded as a separate industry.
For the purposes of such a finding, the Commission shall establish the following:
(a) The producers in such a market sell all or almost all of their production of the product
in question in that market;
(b) the demand in that market is not to any substantial degree supplied by producers of the
product in question which are located elsewhere in the territory;
(c) there is a large concentration of dumped or subsidized imports in such an isolated
market;
(d) the dumped or subsidized imports are causing injury to the producers of all or more
than fifty (50) per cent of all of the production in that market.
CHAPTER IV
CAUSAL LINK
Article 28. –  Once the existence or threat of serious injury to the domestic industry has been
found, it is necessary to establish a causal link.  The investigation shall demonstrate, on the basis of
objective evidence, that the injury or threat of injury is a direct consequence of the dumped or
subsidized imports.
Paragraph. –  When other factors are causing injury to the domestic industry at the same time,
such injury may not be attributed to the imports under investigation.  In this respect, the Commission
shall consider factors such as:
(a) The volume and prices of imports not under investigation in connection with the
subject product;
(b) contraction in demand or changes in the patterns of consumption;(c) trade restrictive practices of and competition between foreign and domestic producers;(d) developments in technology and export performance;
(e) productivity of the domestic industry.
Article 29. –  The effect of the dumped or subsidized imports shall be assessed in relation to
domestic production of the like product when available data permit the separate identification of that
production on the basis of such criteria as the production process, producers' sales performance andprofits.
Paragraph. –  If domestic production of the like product cannot be identified separately on the
basis of such criteria, the assessment shall be ma de by examining the production of the narrowest
group or range of products, which includes the like product, for which the necessary information canbe provided.
Article 30. –  Anti-dumping or countervailing duties may be applied without a determination
of injury or threat of injury to the domestic indus try when the goods come from a country with whichG/ADP/N/1/DOM/3
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the Dominican Republic has not concluded a specific bilateral treaty or a multilateral treaty on the
subject.
Article 31. –  Where imports of a product from more than one country are the subject of
simultaneous anti-dumping or subsidy investigations, the Commission, barring exceptional
circumstances, shall cumulatively assess the effects of such imports in the light of their role and
importance in competition between imported products and like domestic products.  In so doing, the
authorities shall proceed in strict accordance wi th Article 3.3 of the Anti-Dumping Agreement and
Article 15.3 of the Agreement on Subsidies and Countervailing Measures of the WTO.
TITLE III
PROCEDURES
Article 32. –  Save in exceptional circumstances, an investigation to determine the existence,
degree and effects of alleged dumping or subsidization shall be initiated upon a formal application by
or on behalf of the affected domestic industry.  A written application to initiate an investigation shall
be lodged with the Commission, setting forth evidence of:
(a) Dumping or subsidization;
(b) injury;(c) a causal relationship between the dumped or subsidized imports and the alleged injury.
Paragraph. –  The Commission shall reject the application if it fails to meet the requirements
of this Article.
Article 33. –  The application to initiate an investigation shall include the following
information:
(1) The identity of the applicant and a detailed description of the volume and value of
domestic production of the like product, including a list of the domestic producers
involved and the volume and value of production of the like product accounted for by
such producers;
(2) the estimated total volume and value of domestic production of the like product;
(3) a complete description of the allegedly dumped or subsidized product, its tariff
classification, the name(s) of the country or countries of origin or export in question,
the identity of each known exporter or foreign producer and a list of known personsimporting the product in question;
(4) a full description of the product produced by the domestic industry;(5) information on the existence, including the amount and nature, of the subsidy in
question or on representative prices at which the product in question is sold when
destined for consumption in the domestic market(s) of the country or countries of
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is sold from the country or countries of origin or export to a third country or third
countries, or on the constructed value of the product;
(6) data on export prices or, where appropriate, on the prices at which the product is first
resold to an independent buyer in the Dominican Republic;
(7) information on the evolution of the volume of the allegedly dumped or subsidized
imports, the effect of these imports on prices of the like product in the domestic
market and the consequent impact of the imports on the domestic industry.
Paragraph. –  Relevant factors having a bearing on the state of the domestic industry shall be
consistent with several of those listed in paragraphs 2 and 4 of Article 3 of the WTO Anti-Dumping
Agreement and Articles 15.2 and 15.4 of the WTO Agreement on Subsidies and Countervailing
Measures.
Article 34. –  An investigation shall not be initiated unless the Commission has 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 for investigation has indeed been made
by or on behalf of the domestic industry allegedly or actually affected.
The Commission shall consider the application to have actually been made by or on behalf of
the domestic industry if it is supported by those domestic producers whose collective output
constitutes more than fifty (50) per cent of total production of the like product produced by that
portion of the domestic industry expressing either support for or opposition to the application.
Paragraph. –  No investigation shall be initiated by the Commission if domestic producers
expressly supporting the application account for less than twenty-five (25) per cent of total production
of the like product produced by the domestic industry.
Article 35. –  In exceptional or special circumstances, in particular where there is clear
evidence of fragmentation of domestic production, the Commission may initiate an investigation
ex officio , without having received a written application by or on behalf of the domestic industry,
provided that there is sufficient evidence of dumping or subsidization and of the existence or threat of
material injury, and a causal link between dumping or subsidization and the injury or threat thereof.
Paragraph. –   Where the domestic industry is so fragmented as to involve a particularly high
number of producers, the Commission may use universally recognized statistical sampling techniquesto determine the degree of support or opposition.
Article 36. –  Where the Commission has not yet decided to initiate an investigation, it shall
avoid any publicizing of the application.  Where it decide s to initiate the investigation, it shall notify,
via the Ministry of Foreign Affairs, the government of the exporter concerned and any other foreignparties involved and give public notice of its decision in a national newspaper.  Where the number of
exporters involved is particularly high, only the association of the exporting member or the relevant
trade association, as appropriate, shall be notified.
First paragraph. –  Public notice shall be given of any preliminary or final resolution,
whether affirmative or negative, of any decision to accept an undertaking, of the termination of such
an undertaking, and of the termination of a definitive anti-dumping or countervailing duty.G/ADP/N/1/DOM/3
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Second paragraph. –  Investigations into unfair trade practices shall be concluded within a
period of six (6) months, which may, in exceptional and duly justified cases, be extended to eighteen
(18) months.
Article 37. –  To ensure maximum transparency once the application to initiate an
investigation has been accepted, the Commission shall ensure that the aforementioned public notice
contains the following information:
(a) The name(s) of the exporting country or countries and the product involved and the
date of initiation of the investigation;
(b) the grounds for the allegation of injury stated in the application and a summary of the
factors on which the allegation is based;
(c) the address and domicile of the Commission and the time-limits allowed to members
and interested parties for making their views known.
Paragraph. –  Once the investigation has been opened, the Commission shall make the full
text of the written application available, on request, to interested parties.  Likewise, interested parties
shall be given access throughout the proceedings to all relevant information that is not confidential, sothat they can use such information to prepare their submissions. They shall be furnished with
summaries of information provided on a confidential basis by any of the parties.
Article 38. –  For the purposes of the investigation, the term "interested parties" shall mean
local producers and importers and foreign exporters of the product under investigation, foreign legalpersons with a demonstrated interest in the matter, and trade or business associations a majority of the
members of which produce the like product in the Dominican Republic.
Article 39. – Exporters or foreign producers shall be given at least thirty (30) days following
the issue of the notice of initiation of the investigation to complete and return the investigation form
and present their evidence or arguments.  The time-limit shall be extended for a further thirty
(30) days on request by any of the parties.
Article 40. –  During the investigation, the Commission shall request the cooperation of the
General Customs Directorate and any other government body in obtaining and clarifying information
about the case, including in seeking information from other countries, via the Ministry of Foreign
Affairs.
Paragraph. –  Where appropriate, the Commission shall request associations of domestic
producers connected with the investigation to supply information relevant for the determination of
injury.
Article 41. –  The Commission shall terminate the investigation if:
(a) The dumping margin is determined to be de minimis , that is, if the margin is less than
two (2) per cent, expressed as a percentage of the export price;
(b) the volume of dumped imports is found to account for less than three (3) per cent of
imports of the like product into the Dominican Republic.G/ADP/N/1/DOM/3
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Paragraph. –   Article 41(b) shall not apply where countries whose individual shares represent
less than three (3) per cent of imports of the like product into the Dominican market collectively
account for more than seven (7) per cent of those imports.
Article 42. –   As regards subsidized imports, the Commission shall terminate the investigation
if:
(a) In the case of a product from a developing country, the amount of the subsidy is
de minimis , that is, if the amount of the subsidy represents less than one (1) per cent,
or the volume of subsidized imports or the injury may be considered insignificant;
(b) in the case of a product from a developing country, the amount of the subsidy granted
for the product does not exceed two (2) per cent of its value calculated on a per unit
basis, or the subsidized imports represent less than four (4) per cent of the total
imports of the like product in the Dominican Republic.
Paragraph. –  Article 42(b) shall not apply where the imports from other developing
countries whose individual shares represent less than four (4) per cent collectively account for more
than nine (9) per cent of total imports of the like product in the Dominican Republic.
Article 43. –  The Commission may deem an investigation with a view to imposing anti-
dumping and countervailing duties to be terminated upon official receipt of a voluntary undertaking
from the exporter to revise its prices or to cease exports to the Dominican Republic at dumped or
subsidized prices, so that the Commission is satisfie d that the injury or threat of injury to national
production is eliminated.  If the undertaking is accepted, the investigation shall nevertheless proceeduntil its completion if the exporter so desires or the Commission so decides.
First paragraph. –  If, notwithstanding such an undertaking, it is decided to proceed with the
investigation and this leads to a negative determin ation of injury, the undertaking shall automatically
lapse except in instances where the determination is  due in large part to the existence of a price
undertaking.  The Commission may then require that the undertaking be maintained for a reasonable
period of time consistent the provisions of this Law.
In the event of an affirmative determination of injury, the undertaking shall continue, under
the terms on which it was made and pursuant to the provisions of this Law.
Second paragraph. –  Price increases under an undertaking shall not be higher than necessary
to eliminate the margin of dumping or the amount of the subsidy.
Article 44. –  The existence of an anti-dumping or subsidy investigation shall not hinder
customs clearance of the goods investigated.
Article 45. –  The Commission may adopt provisional measures, at the request of the
interested party or on its own initiative, provided that an investigation has been initiated pursuant to
the provisions of this Law and an affirmative preliminary determination of injury to a domestic
industry has been made, and the Commission deems such measures necessary to prevent injury from
being caused during the investigation process.
First paragraph. –  Provisional measures shall not be applied sooner than sixty (60) days
following the date of publication of the resolution in itiating the investigation.  To determine the need
for provisional measures, the Commission shall consider whether the exporter or the product inG/ADP/N/1/DOM/3
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question has been the subject of a remedial measure in any country and or of any other
investigation(s) in the Dominican Republic.
Second paragraph. –  The measures specified in this Article may take the form of a
provisional anti-dumping or countervailing duty or a security – by cash deposit or bond – equivalent to
the provisionally estimated amount of dumping or subsidization, which may not exceed the
provisionally estimated margin of dumping or the provisionally calculated amount of the subsidy.
Article 46. –  The application of provisional measures shall be limited to as short a period as
possible, not exceeding four (4) months or, by decision of the Commission, on request by exporters
representing a significant percentage of the trade involved, to a period not exceeding six (6) months.
When the authorities, in the course of an invest igation, examine whether a provisional duty lower than
the margin of dumping or subsidization would be sufficient, these periods may be six (6) and nine
(9) months, respectively.
Article 47. –  Once the Commission has made a final determination – whether affirmative or
negative – it shall issue a final resolution, which shall be published in a national newspaper.
Paragraph. –  Final resolutions by the Commission shall be enforceable, regardless of any
appeal.
Article 48. –  If the final resolution confirms the amount of the provisional measures adopted,
the amount paid shall be set against that of the definitive measures.  Where a bond has been posted, it
shall be cashed if payment has not been made within a reasonable period of time.  If the amount of the
definitive measure exceeds that of the provisional measure, the difference shall not be collected;  if itis lower, the difference shall be reimbursed.
Article 49. –  Where a final determination of injury (but not of a threat thereof or of a material
retardation) is made, definitive measures may be applied only for the period for which provisional
measures have been applied.  In the case of a final determination of a threat of injury, however, where
the effect of the dumped imports would, in the absence of the provisional measures, have led to a
determination of injury, anti-dumping or countervailing duties may be levied retroactively for theperiod for which provisional measures have been applied.
Article 50. –  Where the Commission decides not to apply definitive measures, the amount of
any provisional duties paid shall be refunded or, where appropriate, the bonds shall be released.
Paragraph. –  In this case, the interested party shall apply for a refund of the amount paid or
recognition of such amount as credit towards future ta riffs and, where appropriate, for its security to be
released.
Article 51. –  Once a preliminary or a final resolution imposing provisional or, as the case may
be, definitive duties has been published, the Commission shall make a recommendation to the General
Customs Directorate, via the Ministry of Finance, within no more than five (5) working days counted
from the date of the resolution, for the application of anti-dumping or countervailing duties.
Article 52. –  Definitive anti-dumping or countervailing duties may be levied on products
which were entered for consumption not more than ninety (90) days prior to the date of application of
provisional measures, where the authorities determine for the dumped or subsidized product in
question that the injury is caused by massive imports of the product over a relatively short period of
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First paragraph. –  For the purposes of this Article, the Commission shall have determined
that the massive imports in question are likely to seriously undermine the remedial effect of thedefinitive anti-dumping duties to be applied, subject to the importers concerned having been given an
opportunity to comment.
Second paragraph. –  In the event of dumping, the Commission shall also determine that
there is a history of dumping and that the domestic importer was, or the importers were, or should
have been, aware that the exporter practised dumping.  No anti-dumping or countervailing duty shall
be levied retroactively on products imported prior to the date of initiation of the investigation.
Article 53. –  The Commission shall notify the application of provisional or definitive anti-
dumping or countervailing duties to the relevant Committee of the World Trade Organization,
pursuant to the Agreement on Implementation of Article VI and the Agreement on Subsidies and
Countervailing Measures.
Article 54. –  The amount of definitive anti-dumping duties and countervailing measures shall
be equivalent to the margin of dumping or subsidization determined.  Anti-dumping and
countervailing duties shall remain in force for a period of five (5) years counted from the date on
which they were imposed, or from the date of the most recent review, if that review has covered both
dumping and injury, or that of the most recent review conducted pursuant to Article 11.3 of the
Anti-Dumping Agreement and Article 11.3 of the Agreement on Subsidies and Countervailing
Measures of the World Trade Organization (WTO).
Paragraph. –  Article 47 notwithstanding, the Commission may undertake a review before the
five years have elapsed, on its own initiative or on a duly reasoned request by or on behalf of the
domestic industry affected, within a reasonable period of time prior to that time-limit, where it
determines that the expiry of the duty would lead to continuation or recurrence of injury to domestic
production.  In this case, the duty may remain in force pending the outcome of such a review.
Article 55. –  The Commission may authorize a refund to exporters subject to an anti-dumping
duty where it can be established that the margin of dumped imports made following the conclusion ofthe proceedings is lower than the margin of dumped imports that were under investigation over the
year that preceded the proceedings.
Paragraph. –  A refund of any such duty paid in excess of the actual margin of dumping shall
normally take place within twelve (12) months, and in no case more than eighteen (18) months,following the date on which a request for a refund, duly supported by evidence, has been made by an
importer of the product subject to the anti-dumping duty.  The refund authorized shall normally be
made within ninety (90) days of the aforementioned decision.
Article 56. –  Once a definitive anti-dumping or countervailing duty has been applied, the
Commission may consider the possibility of the revenue generated by the measure being used to
finance specific programmes for the development and modernization of the sector in question,
according to specific rules and procedures and having due regard for the level of technological
development of the enterprises directly affected by unfair foreign trade practices.G/ADP/N/1/DOM/3
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TITLE IV
SAFEGUARD MEASURES
Article 57. –  Safeguard measures are designed to regulate imports on a temporary basis, and
their objective is to prevent or remedy serious injury to the domestic industry and to facilitate
adjustment for domestic producers.
Article 58. –  Safeguard measures shall be applied when a product, irrespective of its origin, is
being imported in such increased quantities, absolute or relative to domestic production, and undersuch conditions as to cause or threaten to cause injury to a domestic industry that produces like or
directly competitive products.  Safeguard measures shall be applied to an imported product
irrespective of its source.
Article 59. –  An investigation to determine the existence of conditions as set forth above and
requiring the imposition of a safeguard measure shall be initiated upon a written application lodged
with the Commission by an enterprise or group of enterprises representing at least twenty-five
(25) per cent of domestic production of the like or directly competitive product.
Article 60. –  The Commission may initiate an investigation ex officio , subject to the
requirement of evidence that the domestic industry is materially unable to submit the necessary
application.
Article 61. –  An application for the imposition of a safeguard measure shall include:
(a) A description of the imported product, its tariff classification, the customs duty in
force and a description of the like or directly competitive product;
(b) the names and addresses of the enterprises or entities represented in the application,
indicating the percentage level of domestic production of the product represented by
those enterprises;
(c) import data for the product over the previous three years or another representative
period showing the increase in imports;
(d) data on the volume and value of domestic production for the previous three years or
another period that is representative for the industry;
(e) quantitative data showing serious injury or the threat of injury for the period of
investigation, including but not confined to the following:  the degree of utilization of
installed capacity, closure of plants, unemployment, changes in price levels,
production, productivity, sales, and profitability of the relevant portion of domesticproduction;
(f) a description of the causes of the serious injury or of the grounds indicating a threat of
serious injury, and the extent to which such in jury or threat of injury is attributable to
the imports under investigation;
(g) a statement giving specific reasons for seeking application of a safeguard measure and
the estimated level of the measure needed to ensure the achievement of the objectives
pursued.G/ADP/N/1/DOM/3
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Article 62. –  If critical circumstances are alleged, that is, in situations in which any delay in
taking action would cause damage difficult to repair, the application shall set forth the grounds whichserve to demonstrate that the increased imports ar e causing or threatening to cause injury to the
domestic industry.
Article 63. –  Within thirty (30) days of receiving the application to initiate an investigation,
the Commission shall:
(a) Accept the application, having deemed that there are conditions warranting such a
decision;  the existence of due grounds shall be established by ascertaining that the
application is being filed on behalf of a representative portion of the domestic industry
and that there is sufficient evidence of increased imports, injury or the threat of serious
injury, and of the causal link between them;
(b) request the applicant to provide furthe r evidence or information, with a view to
determining, as objectively as possible, whether there are due grounds for initiating an
investigation;
(c) reject the application where it finds that there is insufficient evidence to warrant the
opening of an investigation.
Paragraph. –  In cases (a) and (b), the Commission shall give public notice of the decision
agreeing or declining to initiate the investigation in a national newspaper.
Article 64. –  Once the Commission has initiated an investigation process, it shall immediately
notify, via the Ministry of Foreign Affairs, gove rnments whose exports might be affected by the
application of a safeguard measure.  It shall likewise notify the Committee on Safeguards of the World
Trade Organization (WTO).
Article 65. –  The Commission shall give the interested parties thirty (30) days following the
date of publication of the notice of initiation of the investigation to provide their initial responses tothe form setting out the details of the investiga tion and to present any evidence or arguments they
consider relevant in defence of their interests in the investigation.  This period may be extended, once
only, by the Commission, where it has reasonable and valid grounds to do so.
Article 66. –  An investigation to determine whether increased imports and the conditions
under which the products are being imported have caused or threaten to cause serious injury to the
domestic industry shall consider all factors of an objective and quantifiable nature having a bearing on
the position of the affected portion of the industry.  The determination of the existence or threat of
serious injury shall be based on objective evidence showing a causal link between the increased
imports of the investigated product and the existence or threat of serious injury.
Article 67. –  Upon termination of the investigation, the Commission shall publish a report
setting forth its findings and reasoned conclusions on all issues of fact and law.
Article 68. –  The Commission shall conclude its inve stigations within a period of six
(6) months, which may, in exceptional and duly justified cases, be extended to eighteen (18) months.
Article 69. –  Within thirty (30) days following the date of publication of the notice of
initiation of the investigation, the applicant shall pr esent the Commission with a plan for adjusting theG/ADP/N/1/DOM/3
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domestic industry, which shall be duly justified and in accordance with the objectives pursued through
the application of the requested measure.
Article 70. –  Once the Commission has reached its final decision, it may determine that all or
part of the amount collected as a safeguard measure sh all be allocated to support the plan for adjusting
the domestic industry.  In this case, the Commission shall request the Ministry of Finance to set up a
specific fund with the revenue generated and shall specify the procedures for the distribution and use
of the collected funds, the eligible producers and how the enterprises concerned may expend those
funds.
Article 71. –  Provisional and definitive safeguard measures shall apply only to the extent and
for such period of time as may be necessary to preven t a threat of injury or remedy serious injury and
to facilitate adjustment.
Article 72. –  Safeguard measures shall not be applied to a product originating in a developing
country Member of the World Trade Organization (WTO) as long as its share of total imports of the
investigated product does not exceed three (3) per cent, provided that WTO developing country
Members whose individual shares of imports into the Dominican Republic account for less than three
(3) per cent collectively represent not more than nine (9) per cent of total imports of the product
concerned.
Article 73. –  Safeguard measures may take the form of tariff increases, tariff quotas or import
ceilings.  If the measure takes the form of a quantitative restriction, however, it shall not reduce the
quantity of imports below the average of annual imports over the past three (3) calendar years, unless
clear cause is shown of the need to set a different level in order to prevent or remedy serious injury.
Article 74. –  Where the applicant for a safeguard measure alleges critical circumstances, the
Commission may decide to apply a provisional measure.  Within a maximum period of sixty
(60) days, the Commission shall prepare a preliminary report detailing all pertinent factors of an
objective nature needed to assess the relevance of applying the measure and its possible impact on the
domestic market.  The report shall demonstrate, on the basis of objective evidence, that the increased
imports have caused or threaten to cause injury and that any delay would cause damage to thedomestic industry that is difficult to repair.
Paragraph. –  Prior to the adoption of any of the aforementioned provisional safeguard
measures, the Commission shall notify the Committee on Safeguards of the World Trade
Organization (WTO).  Consultations shall begin as soon as the measure has been adopted.  Any othermatter pertaining to a provisional safeguard measure shall be resolved in accordance with the relevant
provisions of the WTO Agreement on Safeguards.
Article 75. –  A provisional safeguard measure shall be applied for no more than two hundred
(200) days and only in the form of an increase in tariffs calculated ad valorem .  The amount of a
provisional safeguard measure shall be paid or guaranteed by the furnishing of a bond by the importer.
Article 76. –  Where the Commission determines that the amount of a definitive safeguard
measure is higher than that of a provisional safeguard measure that has been paid or guaranteed, the
excess shall not be payable.  Conversely, provisional duties collected in an amount higher than thatfixed for a definitive measure shall be refunded.
Article 77. –  If upon the conclusion of the investigation the Commission makes a affirmative
determination regarding the application of a safeguard measure, it shall publish its report according toG/ADP/N/1/DOM/3
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the terms specified in Article 59.  The Government of the Dominican Republic shall notify the WTO
Committee on Safeguards and the interested parties of the decision.
Article 78.  – A safeguard measure shall initially be applied for a period of not more than four
(4) years, which may be extended to eight (8) years, including the period of application of any
provisional measure, the period of initial application and any extension thereof.
Article 79. –  A definitive safeguard measure whose period of application exceeds one
(1) year shall be progressively liberalized at regular intervals during the period of application.
Paragraph. –  When extended, a measure shall not be more restrictive than at the end of the
period of initial application.  During the extension period, the measure shall continue to be
progressively liberalized.
Article 80. –  No safeguard measure shall be applied again to a product subject to such a
measure for a period of time equal to one half of that during which such measure had previously been
applied.  The period of non-application shall be at least two (2) years.
Article 81. –  Before applying a provisional or definitive safeguard measure, the Government
of the Dominican Republic shall provide adequate opportunity to hold consultations with Members ofthe World Trade Organization (WTO) that have a substantial interest as exporters of the product in
question.  Such consultations shall be held in accordance with the provisions of the WTO Agreement
on Safeguards.
TITLE V
NATIONAL COMMISSION FOR THE REGULATION OF UNFAIR
TRADE PRACTICES AND SAFEGUARD MEASURES
Article 82. –  In pursuance of this Law a Commission for the Regulation of Unfair Trade
Practices and Safeguard Measures is hereby established as a decentralized public body endowed with
functional, judicial and financial autonomy, its own assets, and legal personality.  It shall have legalcapacity to acquire rights and contract obligations.  It shall perform the tasks and exercise the
functions specified in this Law and its regulations.
Article 83. –  The Commission shall be domiciled in the capital of the Republic.  It shall have
national jurisdiction in matters governed by this Law and shall lie under the authority of the Office ofthe Comptroller General of the Republic.
Article 84. –  The duties of the Commission shall be:
(a) To conduct, at the request of an interested party or ex officio , any investigation
required for the purposes of this Law and its regulations in order to determine, where
appropriate, the application of anti-dumping and countervailing duties and safeguard
measures;
(b) to issue duly reasoned decisions, in accordance with the rules laid down in this Law
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(c) to request the implementation of its resolutions by the Ministry of Finance, via the
General Customs Directorate, and such other government authorities as may be
involved in procedures and remedies specified under this Law;
(d) to appoint the Executive Director of the Commission and technical and administrative
staff required for the performance of its statutory functions;
(e) to coordinate with other public institutions representation of the interests of the
Dominican State in international agencies and other countries in matters falling within
its sphere of competence;
(f) to adopt its own rules of procedure and to  draw up and present its budget of income
and expenditures;
(g) to set the fees payable for the reception and processing of applications for
investigation.
Article 85. –  The Commission shall be made up of five (5) members or commissioners
appointed for a period of four (4) years by the Executive.  Prior to being sworn in, they shall be
confirmed by the National Congress.  The commissioners may be appointed and confirmed for asecond term of office and may be removed only fo r serious misconduct or misbehaviour, by decision
of the Executive.
First paragraph. –  Before confirming the candidates proposed, the National Congress shall
hold public consultations to determine their competence or aptitude.
Second paragraph. –  The commissioners may appeal before the Supreme Court of Justice of
an enforceable decision revoking their mandate, which shall be heard and judged by the Court sitting
in full session.
Article 86. –  The members of the Commission shall:
(a) Be Dominican citizens having the full exercise of their civil rights and be over thirty
(30) years of age;
(b) be practising lawyers or economists and have a reputation of moral integrity;  and
(c) have demonstrated expertise in the areas of international trade, control of anti-
competitive practices, arbitration, administrative or judicial procedures for the
settlement of disputes and/or business economics.
First paragraph.  – The Chairman of the Commission may not discharge any other public or
private functions, except those of an honorary or academic nature.
Second paragraph. –  Persons that have been sentenced to afflictive or infamous punishment
may not be appointed as members of the Commission.
Third paragraph. –  From the date of promulgation of this Law, persons who are blood
relations to the fourth degree or relations by affinity to the second degree of any of the parties
involved or who have maintained professional or commercial relations with, or have worked under the
authority of, any such party over the previous five (5) years shall not be permitted to participate in anyG/ADP/N/1/DOM/3
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part of the proceedings.  In any such case, the Civil and Commercial Chamber of the Supreme Court
of Justice shall appoint the required alternate(s).
Article 87. –  For the Commission's deliberations to be valid, at least four (4) of its members
shall attend and decisions shall be taken by an absolute majority of votes.
Article 88. –  The Commission's decisions may be appealed before the Supreme
Administrative Court within thirty (30) days from the date of issue.  The implementing regulations of
this Law shall determine where the appeal of a decision shall have a suspensive effect.
Article 89. –  An item shall be included annually in the Income Budget and Law on Public
Expenditure to cover the Commission's operating costs and the total or partial costs of actions and
procedures initiated within the ambit of this Law by groups of producers or industries, especially in
the agricultural sector and small- and medium-sized enterprises, that cannot afford to pay for them.
Article 90 (Transitory provision). –  Until such time as the Commission has been
constituted, the Executive shall determine which Ministry or official body shall have the
responsibility of implementing this Law.
DONE in the Hall of the Chamber of Deputies, Palace of the National Congress, at Santo
Domingo de Guzmán, National District, capital of the Dominican Republic, on the tenth day of
October of the year two thousand and one,  158th year of Independence and 139th year of Restoration,
(signed by) Máximo Castro Silverio , serving Vice-President;  Hermes Juan José Ortiz Acevedo ,
Ad-Hoc Secretary;  and Rafael Ángel Franjul Troncoso , Secretary.
DONE in the Hall of the Senate, Palace of the National Congress, at Santo Domingo de
Guzmán, National District, capital of the Dominican  Republic, on the eleventh day of December of the
year two thousand and one, 158th year of Independence and 139th year of Restoration.
ANDRES BAUTISTA GARCIA
President
DARIO GOMEZ MARTINEZ
SecretaryRAMIRO ESPINO FERMIN
Secretary
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