RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/ECU/8
G/SCM/Q1/ECU/8
23 April 1999
(99-1659)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES  18.5 AND 32.6 OF THE AGREEMENTS
Replies to Questions Posed by MEXICO1
Regarding the Notification of ECUADOR2
The following communication, dated 29 March 1999, has been received from the Permanent
Mission of Ecuador.
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Question 1
The words "… as in the case of centrally -planned economies …" used in the second
paragraph on page six (foreign trade and investment law section) seem to be illustrative rather
than exhaustive.  Could Ecuador clarify whether there are other cases besides that of
centrally-planned economies in which a substitu te country will be used as a reference for
determining the normal value?
Reply
The case of the centrally-planned economies is cited because the governmental authorities of
such countries can manage prices at their discretion, even to the extent of fixing them below selling
costs and production costs, making it difficult to determine the normal value.  In these cases or insimilar cases, Ecuador uses an investigation procedure consistent with the provisions of the Anti-
Dumping Agreement.
Question 2
Article 6 of the notified rules and procedures refers to adjustments of the normal value,
but it does not specify the situations in which adjustments are to be made for the reasons
mentioned (administrative, selling and general costs and for profits).  Could Ecuador explain in
which situations such adjustments are made?
                                                     
1 G/ADP/Q1/ECU/7-G/SCM/Q1/ECU/7.
2 G/ADP/N/1/ECU/1Suppl.1-G/SCM/N/1/ECU/1/Suppl.1-G/SG/N/1/ECU/1/Suppl.1.G/ADP/Q1/ECU/8
G/SCM/Q1/ECU/8
Page 2
Reply
There is no need to specify the situations in which adjustments are to be made in determining
the normal value as provided for both in paragraph 2.2 of the Anti-Dumping Agreement and inEcuador's Resolution 003, since both of these provisions describe in detail how and when such
adjustments must be made.
Question 3
Article 8 of the notified rules and procedures  states that the investigating authority may
consider other reasonable adjustments to the expo rt price, such as the terms and conditions of
sale, differences in quantities, physical differences and differences in taxation.  Could Ecuador
explain why such adjustments will be applied only to the export price?
Reply
Articles 5 and 6 of Resolution 003 having provided for adjustments of the normal value, the
adjustments to the export price remained to be determined.  This was done in Article 8, under
headings that are specific to that price.
Question 4
Article 9 of the notified rules and procedures states that 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 or in the light of  the data for the latest financial year available.
Will adjustments calculated on the basis of th e data for the latest financial year available be
applied as such, or is some adjustment made for inflation?
Reply
What matters is that the normal price and the export price should be examined on a
comparable basis.
According to the determinations reached in the different investigations concerning the
respective adjustments, the Ecuadorian investigating authority may or may not consider making
adjustments for inflation.
Question 5
Article 36 of the notified rules and procedures states that in the case of on-the-spot
investigations, the enterprises of the exporting country concerned shall be given sufficient notice
of the visit.  How many days (working or ot herwise) does the authority consider to be a
sufficient period for notifying an investigation visit with sufficient notice?
Reply
In the case of the investigation visits provided for in Article 36, the exporting enterprise is
notified at least 15 working days in advance so that it has time to prepare the required information.G/ADP/Q1/ECU/8
G/SCM/Q1/ECU/8
Page 3
Question 6
Article 25, fourth paragraph, of the notified rules and procedures refers to publication
and notification.  What are the differences between these acts, and what are the legal
consequences of each of them?
Reply
The acts indicated in Article 25, fourth paragraph, of Resolution 003 which have legal effects
within the anti-dumping or subsidy investigation process are publications and notifications.
Question 7
Article 25, fourth paragraph, of the notified rules and procedures refers to the
resolutions concerning initiation, provisional and final, as well as to their subsequent
publication, notification and communication within ten working days.  At what moment does aresolution come into effect for the parties concer ned?  When it is issued, when it is published,
when it is notified, or when it is communicated?
Reply
Resolutions concerning initiation of the investigation and application of the provisional or
final measures come into effect for the parties concerned as of the date on which each of them
receives the corresponding notification.
The publication and notification of the respective resolutions must take place on any of the
ten days following the date on which the resolution is issued, and in no case after that time-period.
Question 8
In the case of resolutions accepting an application and initiating an investigation, how
much advance notice does the Ecuadorian Gov ernment consider that the exporting Member
concerned should be given in accordance with  Article 5.5 of the Anti-Dumping Agreement?
Reply
Notification of the exporting Member concerned of the initiation of the investigation takes
place as soon as possible within the period between the acceptance of the application and the initiationof the investigation, and in no case later than the date of initiation.
Question 9
In accordance with Article 6.8 of the Anti -Dumping Agreement, the "best information
available" is to be used only "in cases in which any interested party refuses access to or
otherwise does not provide, necessary information within a reasonable period or significantly
impedes the investigation".  Please explain how the Ecuadorian authorities employ "the best
information available", specifically with resp ect to Article 37 of the notified rules and
procedures.G/ADP/Q1/ECU/8
G/SCM/Q1/ECU/8
Page 4
Reply
Article 37 of the Ecuadorian Resolution does not conflict with Article 6.8 of the
Anti-Dumping Agreement.  Thus, the "best information available" is used in accordance with thosetwo provisions.
Question 10
In Article 42 of the notified rules and procedures there seems to be a contradiction
between the time-period mentioned in the first paragraph and the period mentioned in the third
paragraph.  If the two provisions apply to the same case, which period applies?  Otherwise,please explain what each of the two paragraphs refers to.
Reply
There is no contradiction between the time-periods mentioned in the first and third paragraphs
of Article 42:  the first refers to the period prior to the conclusion of the investigation and the other
refers to the period following the preliminary determination.
Question 11
Article 43, first paragraph, of the notified rules and procedures establishes that up to
ten working days before the expiration of the peri od for the investigating authority to terminate
the investigation, the interested parties may submit written arguments that support their case.
How or by what mechanism will the interest ed parties know the exact date to which this
paragraph refers?  How will the Ecuadorian auth orities proceed to notify it or issue a public
notice?
Reply
Article 30 establishes a maximum time-period of 12 months from the initiation of the
investigation to decide whether or not to apply definitive measures.  Thus, the interested parties
should consider that they have up to 10 days prior to the termination of the investigation to submit the
arguments that support their case.
Notwithstanding, the Ecuadorian authorities will notify the parties concerned as to the
deadline for submitting the written arguments that support their case.
Question 12
Article 48, first paragraph, of the notified rules and procedures establishes that an anti-
dumping or countervailing duty will not be eliminat ed if the reasons for imposing it still exist.
In what way or by what procedure will the Ecuadorian authorities ascertain that such reasonsstill exist?  If an anti-dumping or countervailing duty is repealed, how will this be made known
to the public?  If a public notice is issued, what is its content?
Reply
Throughout the period of application of the measures, the investigating authority will
continually review whether the injury is still taking place, or whether it has diminished or has
disappeared, and according to the results of these reviews it will maintain, reduce or eliminate the
measure and will notify the public through the corresponding resolutions.G/ADP/Q1/ECU/8
G/SCM/Q1/ECU/8
Page 5
Question 13
With regard to Article 49, first paragraph, of the notified rules and procedures, at what
date or during what period can interested parties request a review of definitive duties?
Reply
After the first year following the imposition of the definitive duties, the interested parties may
at any time request that the investigation be reopened.
Question 14
What are the procedures provided for the refunds mentioned in Article 51,
third paragraph, of the notified rules and procedures?
Reply
The refund of definitive anti-dumping or countervailing duties, where appropriate, is provided
by the customs authorities subject to the provisions of the Organic Customs Law.
Question 15
How will the investigating authority resol ve a contradiction arising between the
provisions of the WTO Anti-Dumping Agreement and the notified rules and procedures?
Reply
Where there is a conflict between the Ecuadorian rules and procedures and the WTO
Anti-Dumping Agreement, the provisions of the Anti-Dumping Agreement will prevail.
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