RESTRICTED
WORLD TRADE G/ADP/Q1/BRA/3
G/SCM/Q1/BRA/3
ORGANIZATION 8April 1998
(98-1431)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from theUNITED STATES
toBRAZIL1
Thefollowingcommunication,dated6April1998,hasbeenreceivedfromthePermanentMission
oftheUnited States.
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Questions regarding Decree No.1602 (Anti-Dumping Decree) andDecree No.1751 (SCM Decree)
1. Could Brazil clarify whether Decree No.1602andDecree No.1751supersede theanti-dumping
andcountervailing dutycountervailing provisions ofProvisional Measure No.926of1March 1995
(G/ADP/N/1/BRA/1); (G/SCM/N/1/BRA/1), orwhether those measures remain ineffect?
2. Inresponse toanearlier question regarding judicial review ofanti-dumping andcountervailing
dutyactions, theBrazilian Government advised thatjudicial review ofsuchactions isguaranteed by
means ofrecourse totheBrazilian judicial system. (G/ADP/W/279; G/SCM/W/289). Neither the
Anti-Dumping Decree northeSCM Decree provides forjudicial review ofanti-dumping and
countervailing dutydeterminations asrequired byArticle 13oftheAgreement ontheImplementation
ofArticle VIoftheGeneral Agreement onTariffs andTrade 1994 (A-D Agreement) andArticle 23
oftheAgreementonSubsidiesandCountervailingMeasures(SCMAgreement).WhereelseinBrazilian
lawissucharightprovided andhowisthatlawconsistent withArticle 13oftheA-DAgreement and
Article 23oftheSCM Agreement?
3. While bothArticle 14.4oftheAnti-Dumping Decree andArticle 3.2oftheA-DAgreement
referto“significant ”pricedepression, instead ofalsoreferring topreventing domestic priceincreases
“toasignificant degree ”asintheA-DAgreement, Article 14.4oftheAnti-Dumping Decree requires
consideration ofwhether prices ofthedumped imports are"impeding inarelevant waypriceincreases
which would haveoccurred intheabsence ofsuchimports". Explain whether impeding priceincreases
“inarelevant way”isconsistent withtheobligation toconsider whether price increases which would
otherwise haveoccurred, areprevented “toasignificant degree ”?Explain howthereference toimport
prices that“prevent price increases, which would otherwise haveoccurred ”without anymodifier in
Article 21.5oftheSCM Decree isconsistent withArticle 15.2oftheSCM Agreement.
1G/ADP/N/1/BRA/2 andG/SCM/N/1/BRA/2G/ADP/Q1/BRA/3
G/SCM/Q1/BRA/3
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4. Inaddition totheknown factors otherthandumped orsubsidized imports thatmustbeexamined
pursuant toArticle 3.5oftheA-DAgreement andArticle 15.5oftheSCM Agreement indetermining
thecausal relationship between dumped orsubsidized imports andinjury tothedomestic industry,
Article 15.1oftheAnti-Dumping Decree liststhe“impact oftheprocess ofliberalization ofimports
ondomestic prices ”andArticle 22.1oftheSCM Decree lists“theimpact ofalterations inimport tariffs
onthedomestic prices ”.Please define the“process ofliberalization ofimports ”andexplain whether
ithasthesame meaning as“alterations inimport tariffs ”.Please explain howBrazil analyzes these
factors.
5. Arethe“appropriate steps which ...willprovide fortheimposition ofthedefinitive ”duties
referred toinArticle 22oftheAnti-Dumping Decree andArticle 31oftheSCM Decree tobetaken
prior totheissuance ofpreliminary determinations ofdumping andinjury, and,ifso,howarethey
consistentwithArticle7.1paragraphs(ii)and(iii)oftheA-DAgreementandArticle17.1paragraphs(b)
and(c)oftheSCM Agreement?
6. HowdotheAnti-Dumping Decree andSCM Decree incorporate therequirement inArticle 6
note18oftheA-DAgreement andArticle 12note43oftheSCM Agreement thatrequests for
confidentiality shallnotbearbitrarily denied?
7. What arethe“internal Government documents ”referred toinArticle 32oftheAnti-Dumping
Decree andArticle 42.2oftheSCM Decree? Howistheirunavailability tointerested parties consistent
with(1)theobligation imposed byArticle 6.4oftheA-DAgreement andArticle 12.3oftheSCM
Agreement tomake available allnon-confidential information “thatisusedbytheauthorities ”and
(2)theobligation imposed byArticle 6.9oftheA-DAgreement andArticle 12.8oftheSCM Agreement
to“inform allinterested parties oftheessential factsunder consideration ”?
8. Explain whether public notices provided forinthe‘Diario Oficial ’willinclude theinformation
setforthinArticles 12.1.1, 12.2.1, 12.2.2 and12.2.3 oftheA-DAgreement andArticles 22.2, 22.4,
22.5and22.6oftheSCM Agreement.
9. Explain howArticle 61oftheAnti-Dumping Decree andArticle 71oftheSCM Decree, which
donotstatethatdecisions inanti-dumping andcountervailing dutyinvestigations willinclude reasons
fortheacceptance orrejection ofprincipal arguments made byexporters andimporters, areconsistent
withtherequirements ofArticle 12.2.2 oftheA-DAgreement andArticle 22.5oftheSCM Agreement?
Questions regarding specific provisions ofDecree 1602 (Anti-Dumping Decree)
10. Article 1refers to,butdoesnotdefine, “primary andnon-primary dumped products. ”Does
theuseofthistermexpand orreduce theapplicability oftheA-DAgreement toallgoods?
11. Aretheprovisions ofArticle 17.4oftheAnti-Dumping Decree paragraphs (a)and(b)with
respect totheestablishment ofaregional industry consistent withtherequirements ofArticle 4.1of
theA-DAgreement inlightoftheirfailure toinclude theconnector “and”indicating thatbothparagraphs
must besatisfied?
12. Article 21.2oftheAnti-Dumping Decree provides that,uponinitiation ofaninvestigation and
publication ofsuchnotice intheDiario Oficial, “theknown involved parties shallbenotified andshall
begranted aperiod oftwenty days...foranapplication requesting thequalifying ofother parties that
areconsidered asbeing interested, withtherespective indication oftheirlegalrepresentatives, pursuant
totheprovision ofrelevant legislation. ”Please clarify whether thisrefers toadeadline forentry ofG/ADP/Q1/BRA/3
G/SCM/Q1/BRA/3
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appearance bycounsel forallparties and/or forparties notnamed inthepetition toidentify themselves
asinterested parties. What isthe“relevant legislation ”referred toandwhatdoesitprovide?
13. Article 21.4oftheAnti-Dumping Decree provides thatassoonastheinvestigation isinitiated,
thecomplete textofthepetition shallbeprovided totheknown foreign producers andexporters and
totheauthorities oftheexporting country. Please clarify bywhatmeans theadministering authority
willnormally provide thepetition copies tothese parties.
14. Istheprovision inArticle 21.4oftheAnti-Dumping Decree tomake thetextoftheapplication
upon which theanti-dumping investigation isbased available toother interested parties “ifrequired ”
consistentwiththeobligationofArticle6.1.3oftheA-DAgreementtomaketherequestforinvestigation
available toother interested parties “upon request ”?
15. Article 30.3oftheAnti-Dumping Decree provides thattheresults ofverifications willbe
“attached totheprocess ”.Inaddition tobecoming partoftheofficial record, willthese reports be
made available totheparties whose datawere verified, andifso,under whatprocedures?
16. Article 32ofAnti-Dumping Decree provides thattheinterested parties may“examine ”
information ontherecord, withtheexception ofconfidential information andinternal government
documents, andArticle 63.3oftheAnti-Dumping Decree refers totherighttorequest a“certificate
regarding theprogress oftheinvestigation ”.Mayparties alsoobtain copies ofpublic information and
ofnon-confidential summaries ofconfidential information? HowdoestheBrazilian government fulfil
therequirement ofArticle 6.5.1 oftheA-DAgreement thatparties submitting confidential information
provide non-confidential summaries thereof sufficient topermit areasonable understanding ofthe
confidential data?
17. DoesBrazilintendtoissuepreliminarydeterminationsinmostcases?Underwhatcircumstances
would itnotdoso?
18. Article 45.3oftheAnti-Dumping Decree callsforanti-dumping duties tobesetinUSdollars
andconverted toBrazilian currency “under theterms oftherelevant legislation ”.What willbethe
dateforsuchconversion? Hastherelevant legislation beennotified totheAnti-Dumping Committee?
19. Article 61oftheAnti-Dumping Decree provides foracopyofboththeactresulting fromthe
jointministerial decision toimpose provisional ordefinitive measures andthefindings ofSECEX to
besenttothegovernment oftheexporting country orcountries andtoother interested parties. Does
theBrazilian Government interpret thisregulation tomean, insituations inwhich nojointministerial
decision toimpose provisional measures issues, theunderlying SECEX finding would stillbenotified
tointerested parties andtherelevant government?
20. Article62.1oftheAnti-DumpingDecreeappearstoindicatethattheshowingofinjurynecessary
tosupport arequest forathirdcountry dumping investigation mustbebased on“price information ”.
Isthismorerestrictive thanthe“detailed information ”referred toinArticle 14.2oftheA-DAgreement
and,ifso,howisitconsistent withthatArticle?
21. Article 72oftheAnti-Dumping Decree callsfortheMinister ofStateforIndustry, Trade and
TourismandtheMinisterofStateforFinancetopass“complementarynormsforexecutingthisDecree”.
Could Brazil elaborate ontheareas inwhich itintends toprovide further regulation, andwhether it
intends tonotify suchcomplementary norms totheCommittee? What istheestimated dateforthe
completion ofthese measures?G/ADP/Q1/BRA/3
G/SCM/Q1/BRA/3
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Questions regarding specific provisions ofDecree 1751
22. Article 23oftheSCM Decree states thattheexistence ofthethreat ofmaterial injury shall
bebased on“factsandaconvincing motive ”.Given thatArticle 15.7requires thatadetermination
ofathreat ofmaterial injury shallbebased on“factsandnotmerely onallegation, conjecture orremote
possibility ”.Please explain how“motive ”istobeunderstood andascertained inthecontext ofa
determination ofthreat ofmaterial injury.
23. Article30§2oftheSCMDecreeprovidesthatuponinitiationofaninvestigationandpublication
ofsuchnotice intheDiario Official, interested parties andgovernments “shallbenotified andgiven
atimelimitoftwenty days...inorder torequest qualification ofother parties whomanifest interest,
along withtheirlegalrepresentatives, asperthepertinent legislation. ”Please clarify whether this
refers toadeadline forentry ofappearance bycounsel forallparties and/or forparties notnamed
inthepetition toidentify themselves asinterested parties. What isthe“pertinent legislation ”referred
toandwhatdoesitprovide?
24. Article30§3oftheSCMDecreeprovidesthatan“interestedparty”caninclude“theassociation
which represents ”domestic producers, importers/consignees, orforeign exporters/producers. Does
Brazil intend tolimittheassociations considered “interested parties ”tothose referred toinArticle 12.9
oftheAgreement, i.e.associations themajority ofthemembers ofwhich areproducers, exporters
orimporters oftheproduct atissue?
25. Article 30§4oftheSCM Decree provides thatassoonastheinvestigation isinitiated, the
complete textofthepetition shallbeprovided totheknown producers andexporters andtotheauthorities
oftheexporting country. Could theBrazilian delegate please clarify bywhatmeans andwithin which
timedeadline theadministering agency willnormally provide thepetition copies totheknown exporters?
26. Article 40§3oftheSCM Decree provides thattheresults ofverifications shallbe“attached
totheprocess ”.Inaddition tobecoming partoftheofficial record, willthesereports bemade available
totheparties whose datawere verified, andifso,under whatprocedures?
27. Article 42§2oftheSCM Decree provides thattheinterested parties mayrequest, inwriting,
to“see”information ontherecord, which shallbe“placed attheirdisposition ”withtheexception
ofconfidential information andinternal government documents, andArticle 72§3refers totheright
to“consult theminutes ”andrequest “certificates about theproceeding. ”Mayparties alsoobtain copies
ofpublic information andofnon-confidential summaries ofconfidential information? Howdoesthe
Brazilian government fulfil therequirement ofArticle 12.4.1 oftheSCM Agreement thatparties
submitting confidential information provide non-confidential summaries thereof sufficient topermit
areasonable understanding oftheconfidential data?
28. DoesBrazilintendtoissuepreliminarydeterminationsinmostcountervailingdutycases?Under
whatcircumstances would itnotdoso?
29. Article 55§3oftheSCM Decree callsforcountervailing duties tobesetinUSdollars and
converted toBrazilian currency “interms ofthepertinent legislation ”.What willbethedateforsuch
conversion? Hasthepertinent legislation beennotified totheSubsidies Committee?
30. Article 64oftheSCM Decree doesnotlimit imposition ofretroactive duties tosituations
involving imports benefitting from subsidies paidorbestowed inconsistently withtheprovisions of
GATT 1994 andoftheSCM Agreement. Explain howthisArticle isconsistent withArticle 20.6of
theSCM Agreement.
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