RESTRICTED
WORLD TRADE G/ADP/Q1/PRY/2
G/SCM/Q1/PRY/2
ORGANIZATION 10October 1997
(97-4339)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from HONG KONG, CHINA
toPARAGUAY1
Thefollowing communication, dated 6October 1997, hasbeenreceived fromtheHong Kong
Economic andTrade Office.
_______________
Domestic legalstatus oftheAnti-Dumping Agreement
According totheinformation provided byParaguay inanearlier review exercise, theAnti-
Dumping Agreement (theAgreement) forming partoftheUruguay Round Agreements hasbeenratified
byParliament andhastheforce oflawinParaguay. TheParaguayan authorities arebound toapply
theAgreement provisions. [Ref. G/ADP/W/373-G/SCM/W/383].
Paraguay 'spresent notification contains Decree No.15.286 of28October 1996 designating
theMinistryofIndustryandTradeandtheMinistryofFinancetoimplementLawNo.444/94concerning
theAgreement onImplementation ofArticle VIoftheGATT 1994, andlaying down theapplicable
procedures.
Questions
What isthelegalstatus oftheAgreement intheParaguayan legalsystem? Isitsuperior to
thedomestic anti-dumping (AD) legislation? Which takes precedence incaseofinconsistencies?
How aretheprovisions oftheAgreement applied withforce oflawinParaguay? More
specifically, intheconduct ofA-Dproceedings, would theParaguayan authorities taketheAgreement
astheprimary source oflegalauthority? Orwould theyonlyrefertotheAgreement asasupplement
tothedomestic A-Dlegislation orasalastresort?
Sales below costs
Article 4.4oftheDecree provides thatsalesatprices below perunitcostsofproduction plus
administrative, selling andgeneral costs maybetreated asnotbeing intheordinary course oftrade
byreason ofpriceandmaybedisregarded indetermining normal value onlyiftheauthorities determine
thatsuchsales aremade (1)within aperiod normally oneyearbutinnocaselessthansixmonths;
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(2)insignificant quantities, i.e.representing atleast20%ofsalesintransactions under consideration
forthedetermination ofthenormal value; and(3)atprices which donotprovide fortherecovery
ofallcosts within areasonable period oftime.
Onthedefinition of"substantial quantities", Footnote 5oftheAgreement provides analternate
criterion, i.e.when theweighted average selling price ofthetransactions under consideration forthe
determination ofthenormal value isbelow theweighted average perunitcosts.
Question
Would Paraguay clarify whether thealternate criterion asprovided inFootnote 5ofthe
Agreementwouldbeemployedfordeterminingwhethersalesbelowperunitcostsaremadeinsubstantial
quantities?
Determination ofnormal value incentrally-planned economies
Article 4.9oftheDecree provides thatinthecaseofimports originating incentrally-planned
economies, thenormal value ofalikeproduct shallbedetermined onthebasis ofthesalesvalue for
domestic consumption, intheordinary course oftrade, ofalikeproduct toathirdcountry withamarket
economy or,failing this,ofitsexports, oronthebasisofsuchothercriterion astheMinistry ofIndustry
andTrade considers relevant tothecircumstances. However, theselection ofthecountry must not
openly result indisadvantages fortheproducer orexporter ofthecountry oforigin.
Questions
(a) Isthere anygeneral principle/guideline fortheselection ofathird country withamarket
economy? Inwhat circumstances would Paraguay consider theselection ofathird country
mayopenly result indisadvantages fortheproducer orexporter ofthecountry oforigin?
(b) Would Paraguay further elaborate onwhat"other criterion" would beconsidered relevant to
thecircumstances ofdetermining thenormal value incentrally-planned economies?
Determination ofinjury
Article 7.3oftheDecree states thatthevolume andeffects ofimports fromororiginating in
more thanonecountry under investigation maybeconsidered cumulatively withaviewtoassessing
theinjury tothedomestic industry, provided themargin ofdumping isnotdeminimis andthevolume
ofimports isnotnegligible.
Article 3.3oftheAgreement stipulates thattheauthorities maycumulatively assess theeffects
ofimports frommore thanonecountry onlyiftheydetermine that(a)themargin ofdumping established
inrelation totheimports fromeachcountry ismore thandeminimis andthevolume ofimports from
eachcountry isnotnegligible and(b)acumulative assessment oftheeffects oftheimports isappropriate
inlightoftheconditions ofcompetition between theimported products andtheconditions ofcompetition
between theimported products andthelikedomestic product.
Questions
(a) Would Paraguay clarify whether itwillassess deminimis dumping margin and"negligible"
imports onthebasis ofeachcountry orallcountries involved asawhole?G/ADP/Q1/PRY/2
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(b) Would Paraguay advise whether condition (b)ofArticle 3.3oftheAgreement would betaken
intoaccount indetermining cumulation ofimports fromdifferent countries forassessment of
injury?
Confidential information
Article 14.5oftheDecree provides thatevidence andinformation presented byeachofthe
interested parties shallbebrought totheattention ofeachoftheparties involved, withtheexception
ofinformation classified asconfidential, which shallbetreated assuchbytheMinistry ofIndustry
andTrade.
Article 6.5oftheAgreement states thatanyinformation which isbynature confidential, or
which isprovided onaconfidential basisbyparties toaninvestigation shall, upongoodcause shown,
betreated assuchbytheauthorities. Suchinformation shallnotbedisclosed without specific permission
oftheparty submitting it.
Questions
Would Paraguay provide details onthemeaning of"confidential" information asstipulated
inArticle 14.5oftheDecree? Does itinclude information provided byinterested parties ona
confidential basis? Would suchinformation notbedisclosed without specific permission oftheparty
submitting it?
Provisional measures
Article 16.4oftheDecree states thatinnocaseshalltheimposition ofprovisional measures
beordered sooner thansixcalendar daysfollowing thedateofthepublication initiating theinvestigation.
Article 7.3oftheAgreement provides thatprovisional measures shallnotbeapplied sooner
than60daysfrom thedateofinitiation oftheinvestigation.
Question
Would Paraguay clarify howitsdomestic legislation isconsistent withtherequirements ofthe
Agreement?
National economic interest andpublic interest
Article 18.4oftheDecree provides thatdueconsideration shallbegiven inassessing thecase
tonational economic interests andthepublic interest, andtotheinformation presented bytheparties
inthatrespect, including information presented bygroups orassociations ofusers andconsumers.
Adetermination nottoimpose measures maybemade when itisconcluded thatsuchmeasures would
result inmaterial injury tothenational economy.
Questions
How would theParaguayan authorities make adetermination ofnational economic interest
andpublic interest? What could betherelevant considerations?G/ADP/Q1/PRY/2
G/SCM/Q1/PRY/2
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Newcomers review
Article 19.3oftheDecree provides forareview fortheunrelated "newcomers".
Article 9.5oftheAgreement states thatsuchareview shallbeinitiated andcarried outon
anaccelerated basis, compared tonormal dutyassessment andreview proceedings intheimporting
Member. NoA-Dduties shallbelevied onimports fromsuchexporters orproducers while thereview
isbeing carried out.Theauthorities may, however, withhold appraisement and/or request guarantees
toensure that,should suchareview result inadetermination ofdumping inrespect ofsuchproducers
orexporters, A-Dduties canbelevied retroactively tothedateoftheinitiation ofthereview.
Question
Would Paraguay provide more details onhowthenewcomers review would beconducted in
accordance withtheobligations asprovided forinArticle 9.5oftheAgreement?
Keyissues intheAnti-Dumping Agreement found silent intheParaguayan A-Dlegislation
Itappears thatsome provisions oftheAgreement arenotfeatured intheParaguayan A-D
legislation, ortherelevant codification maynotbeadequate. Examples areasfollows:
Exchange rates(Article 2.4.1)
Public notice ofdeterminations (Article 12.2)
Procedures foron-the-spot investigation (Annex I)
Procedures regarding useofbestinformation available (Annex II)
Questions
Would Paraguay clarify whether thereareanyspecific domestic provisions reflecting theabove
Agreementprovisions?Ifnot,howwouldParaguayensurecompliancewiththeseAgreementprovisions?