RESTRICTED
WORLD TRADE G/ADP/Q1/PRY/4
G/SCM/Q1/PRY/4
ORGANIZATION 25November 1997
(97-5173)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofParaguay1toQuestions from Hong Kong,
China2,Mexico3andtheUnited States4
Thefollowing communication hasbeenreceived, on12November 1997, fromthePermanent
Mission ofParaguay.
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TABLE OFCONTENTS
Page
Hong Kong, China ...............................................2
Mexico ......................................................4
United States ...................................................8
1G/ADP/N/1/PRY/2-G/SCM/N/1/PRY/2.
2G/ADP/Q1/PRY/2-G/SCM/Q1/PRY/2.
3G/ADP/Q1/PRY/1-G/SCM/Q1/PRY/1.
4G/ADP/Q1/PRY/3-G/SCM/Q1/PRY/3.G/ADP/Q1/PRY/4
G/SCM/Q1/PRY/4
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Questions from Hong Kong, China concerning Decree No.15,286/96
1. What isthelegal status oftheWTO Anti-Dumping Agreement intheParaguayan legal
system? Isitsuperior tothedomestic anti-dumping legislation (Decree)? Which takes precedence
incaseofinconsistencies?
Intheconduct ofananti-dumping investigation, dotheimplementing authorities consider
theAgreement astheprimary source oflegal authority?
With regard totheimplementation ofanti-dumping measures, itshould bestressed thatthe
Government ofParaguay wishes thistrade policy instrument tobeusedstrictly inaccordance with
theprovisions oftheAnti-Dumping Agreement, withtheprimary objective ofguaranteeing therights
ofallMembers oftheWorld Trade Organization (WTO). Tothisend,ourcountry fullyincorporated
theUruguay Round Final Actintoitslegislation through LawNo.444of10November 1994.
Decree No.15,286, of28November 1996 designates theMinistries ofIndustry andTrade
andofFinance toimplement LawNo.444/94 inmatters relating tothe"Agreement onImplementation
ofArticle VIofGATT 1994" andthe"Agreement onSubsidies andCountervailing Measures", and
laysdown theapplicable procedures.
Under theNational Constitution ofParaguay, enacted lawstakeprecedence overdecrees.
Accordingly, Law444/94 constitutes thelegalauthority fortheapplication ofmeasures todealwith
unfair trade practices, andinspecific matters notreferred toinDecree 15,286/96 theprocedure laid
down intheLawistobefollowed.
2. Sales below costs
Would Paraguay clarify whether thealternative criterion asprovided infootnote 5ofthe
Agreement would beemployed fordetermining whether sales below perunitcosts aremade in
substantial quantities?
Depending ontheavailability ofreliable information, criteria suchasthose given infootnote 5
oftheAgreement maybeused. Asmentioned intheprevious reply, theAgreement wasincorporated
intodomestic lawthrough LawNo.444/94.
3. Provisions ofArticle 4.9ofDecree 15,286/96
Isthere anygeneral principle fortheselection ofathird country withamarket economy?
Inwhat circumstances would Paraguay consider theselection ofathird country mayopenly result
indisadvantages fortheexporters ofacountry oforigin?
Theprinciple istoselect acountry where price levels arenotsetbyagovernment agency or
regulated tosuchanextent astoexerteffects onprices thatareequivalent tothose ofcentrally planned
economies.
WouldParaguaymentionwhatotherconsiderationswillberelevanttodeterminethenormal
value incentrally planned economies?
Asageneral principle, account willbetaken oftheconsiderations thatguarantee thatthe
procedures usedinthedetermination ofnormal value arethose allowed under theAnti-DumpingG/ADP/Q1/PRY/4
G/SCM/Q1/PRY/4
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Agreement, andtheinterpretations stemming from thework carried outbyspecialists intheWTO
Committee onAnti-Dumping Practices.
4. Determination ofinjury
Article 7.3ofDecree No.15,286/96 determines themethod forcumulating thevolume
andeffects ofimports from more than onecountry under investigation. Inthelight ofthe
provisions ofArticle 3.3oftheAnti-Dumping Agreement withregard tocumulative assessment,
thefollowing questions areasked:
(a) Would Paraguay clarify whether itwillassess thedeminimis dumping margin andwhether
imports arenegligible onthebasis ofastudy ofeachcountry orforallthecountries asawhole?
Theassessments willbecarried outtaking intoconsideration theprovisions ofArticle 7.3of
Decree No.15,286/96 andinaccordance withthedefinition of"deminimis" andsignificant volume
ofimports given inArticles 4.10and6.3ofthatDecree.
(b) Indetermining cumulative assessment ofimports from different countries inorder to
determine injury, willaccount betaken ofcondition (b)ofArticle 3.3oftheAgreement?
Theabove-mentioned clause ofArticle 3.3willbetaken intoaccount todetermine whether
thecircumstances ofcompetition between theimported products andthedomestic product make it
advisable toassess theeffects ofsuchimports cumulatively.
5. Would Paraguay provide details ofthemeaning of"confidential" information asstipulated
inArticle 14.5oftheDecree? Does itinclude information provided byinterested parties ona
confidential basis? Would suchinformation notbedisclosed without specific permission ofthe
party submitting it?
Confidentiality willbeinterpreted inaccordance withtheWTO Anti-Dumping Agreement.
Article 14.5oftheDecree refers toinformation provided byparties onaconfidential basis. Such
information mustbeaccompanied bynon-confidential summaries towhich theother interested parties
mayhaveaccess. Asspecified inthatArticle, iftheparty providing theinformation considers that
itcannot bedisclosed eveninsummary form, itmust justify thereasons foritsattitude, andthe
implementing authority willnotdisclose theinformation, subject totheprovisions ofArticle 14.6of
theDecree.
6. Provisional measures
Article 16.4oftheDecree states thatinnocaseshalltheimposition ofprovisional measures
beordered sooner than sixcalendar days following thedateofthepublication initiating the
investigation. Article 7.3oftheAgreement provides thatprovisional measures shallnotbeapplied
sooner than60daysfrom thedateofinitiation oftheinvestigation. Would Paraguay clarify how
itsdomestic legislation isconsistent withtherequirements oftheAgreement?
There appears tohavebeenatypographical error inthe[English] textofArticle 16.4ofthe
Decree, astheArticle states thatinnocaseshalltheimposition ofprovisional measures beordered
sooner than60calendar daysfollowing thedateofthepublication initiating theinvestigation.G/ADP/Q1/PRY/4
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7. National economic interest andpublic interest
With regard toArticle 18.4oftheDecree, howwould theParaguayan authorities evaluate
thepublic interest andnational economic interest? What would betherelevant considerations?
Article 18.4ofDecree 15,286/96 refers tovarious considerations relating tothecountry 'spublic
policy, withregard tothereconciliation ofthevarious sectors ofsociety (producers, consumers or
users'associations). These considerations willbetaken intoaccount inaccordance withtheWTO
Anti-DumpingAgreementandtheinterpretationsstemmingfromtheworkofspecialistsintheCommittee
onAnti-Dumping Practices.
8. Newcomers 'review
Article 19.3 oftheDecree provides forareview fornewcomers. Article 9.5ofthe
Anti-Dumping Agreement specifies theconditions forsuchareview. Could further details be
provided onhowthenewcomers 'review would beconducted, inaccordance withArticle 9.5of
theAgreement?
Theimplementing authority designated inDecree 15,286/96 determines theadministrative
mechanisms forsuchinvestigations tobeconducted inaccordance withtheAnti-Dumping Agreement,
ensuring thattheprocedures arecarried outwiththenecessary speed anddonotinvolve unfair
discrimination against newsuppliers.
9. Keyaspects intheAnti-Dumping Agreement notspecified inDecree 15,286/96
- Exchange rates in(Article 2.4.1);
- public notice ofdeterminations (Article 12.2);
- procedures foron-the-spot investigation (Annex I);
- procedures regarding useofbestinformation available (Annex II).
With regard tomatters notmentioned inDecree 15,286/96, please refertoreply No.1.
Questions from Mexico onDecree No.15,286/96
1. Where there isacontradiction between theWTO Agreements andDecree No.15,288 of
28October 1996 (theDecree), howwillitberesolved bythecompetent Paraguayan authority?
With regard totheimplementation ofanti-dumping measures, itshould bestressed thatthe
Government ofParaguay wishes thistrade policy instrument tobeusedstrictly inaccordance with
theprovisions oftheAnti-Dumping Agreement, withtheprimary objective ofguaranteeing therights
ofallMembers oftheWorld Trade Organization (WTO). Tothisend,ourcountry fullyincorporated
theUruguay Round Final Actintoitslegislation through LawNo.444of10November 1994.
Decree No.15,286, of28November 1996 designates theMinistries ofIndustry andTrade
andofFinance toimplement LawNo.444/94 inmatters relating tothe"Agreement onImplementation
ofArticle VIofGATT 1994" andthe"Agreement onSubsidies andCountervailing Measures", and
laysdown theapplicable procedures.
Under theNational Constitution ofParaguay, enacted lawstakeprecedence overdecrees.
Accordingly, Law444/94 constitutes thelegalauthority fortheapplication ofmeasures todealwithG/ADP/Q1/PRY/4
G/SCM/Q1/PRY/4
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unfair trade practices, andinspecific matters notreferred toinDecree 15,286/96 theprocedure laid
down intheLawistobefollowed.
2. Asfrom what daydothetime-limits established bythenotified decree run: thedateof
notification ofthecorresponding resolutions ordeterminations, thedayfollowing notification,
orthedayfollowing publication (iftheyarepublished)?
Thetime-limits referred toinArticle 14.1runfromthereceipt ofthenotification (inaccordance
withtheWTO Anti-Dumping Agreement). Thesameapplies tothetime-limit laiddown inArticle 17.2.
3. Articles 2.1(b), 8.5,14.2, 18.1and27.1(among others) ofthenotified Decree refer to
theconcept of"special" or"exceptional" circumstances. What criterion willtheParaguayan
investigating authority usetodetermine these special orexceptional circumstances when applying
thelegislation?
Theexpression "special circumstances" refers tosituations thatcould arise inthespecific
implementation oftheArticles concerned. Theywillbedetermined taking dueaccount oftheprovisions
oftheWTO Anti-Dumping Agreement, ensuring thattheinterests ofallMembers arefullysafeguarded.
4. What typeofcharacteristics would betaken intoaccount todetermine thataproduct is
similar toanother within themeaning ofArticle 2?
TheDecree gives adefinition ofwhatisconsidered tobealikeproduct. With regard tothe
specific characteristics thatwillbetaken intoaccount todetermine whether ornotaproduct issimilar,
theywillnotdiffer from thetechnical andeconomic criteria commonly usedinaccordance with
international standards.
5. Under Article 3,what rolewilltheMinistry ofFinance playintheinvestigations? Will
thesame agency beresponsible fordetermining theexistence ofdumping orsubsidies andthe
existence ofinjury?
Asismade clearinArticles 3.1and3.2,theMinistry ofFinance isresponsible -jointly with
theMinistry ofIndustry andTrade -fortheapplication ofprovisional measures, countervailing measures
andanti-dumping duties. These bodies willberesponsible fordetermining, bothprovisionally and
finally, whether ornottoimpose suchmeasures inaccordance withtheconclusions oftheTrade Defence
Commission.
Furthermore, Article 3.3establishes thattheMinistry ofIndustry andTrade willberesponsible
forconducting investigations andcarrying outadministrative procedures.
6. Article 4.2setsouttwooptions forprice comparisons where there arenosales ofthelike
product intheordinary course oftrade inthedomestic market ofthecountry oftheorigin or
theexporting country. What criteria doestheinvestigating authority follow todetermine which
ofthese options should beused, oraretheyusedwithout distinction.
Noinvestigation forunfair tradepractices hasyetbeeninitiated. Infuture, theoptions provided
inArticle 4.2willhavetobeusedinaccordance withtwogeneral principles: (a)thattheinvestigations
beconducted inafairandtransparent manner; and(b)thatdueconsideration begiven toaccess to
information anditsdegree ofreliability.G/ADP/Q1/PRY/4
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7. What elements must betaken intoaccount todetermine thatthere is"asufficient quantity"
within themeaning ofArticle 4.3oftheDecree?
Thedetermination astowhether thequantity ofsalesofaproduct onthedomestic market of
theexporting country allows aproper comparison fordetermining thenormal value willbecarried
outinaccordance withsound technical andeconomic criteria soastoguarantee thatsuchtransactions
arerepresentative andtakeplace inconditions properly reflecting production andsalecosts aswell
asanormal margin ofprofitability.
8. What should beunderstood by"reasonable basis" forthecalculation oftheexport price
inaccordance withArticle 4.5?
Thereasonable basisreferred toinArticle 4.5istheproper reconstruction oftheexport price
based onvalid information available, soastoreach aprice thatreflects production andselling costs
(aswellasanyother costofentering theproduct intothehome market), aswellasanormal margin
ofprofitability.
9. Article 4.10oftheDecree provides fortaking intoaccount thecontents ofArticle 8.Could
wehave amore detailed explanation ofhowArticle 8willbetaken intoaccount?
Article 4.10states thataccount willbetaken oftheprovisions ofArticle 8,inthesense that
amargin ofdumping hasbeendetermined afterhaving fullycomplied withtherequirements justifying
theinitiation ofananti-dumping investigation.
10. Howisthe"positive evidence" forthedetermination oftheexistence ofinjury established,
asprovided forinArticle 6.1? Arethecriterion mentioned inthatparagraph consecutive or
mutually exclusive?
Positive evidence mustbeinterpreted asmeaning thatvalid andreliable proof isusedforthe
determination ofinjury. Thecriteria mentioned inthisparagraph willbeconsidered separately or
together, according totheirincidence.
11. Article 6.4laysdown anumber ofrequirements thatmust betaken intoaccount to
determine theeffect ofdumped orsubsidized imports onthedomestic industry. Arethefactors
mentioned inthisArticle alsotaken intoaccount todecide whether ornottoinitiate an
investigation?
Alltheinformational requirements requested inthehandbooks prepared bytheMinistry of
Industry andTrade andapproved bytheCommission aretaken intoaccount. Theapplication must
contain evidence oftheexistence of(a)dumping, (b)injury and(c)acausal linkbetween thedumped
imports andthealleged injury.
12. Article 8.3provides thattheapplication shall bedrawn upinconformity with the
requirements laiddown inthehandbooks prepared bytheMinistry. Arethese handbooks different
foreachcase, andifso,what arethegeneral guidelines thattheyhavetocover inorder tofulfil
Paraguay 'sobligations asaWTO Member?
Thequestionnaire isthesameforsubsidies anddumping practices, andtakesintoconsideration
theinformational needs required tofully comply withtherequirements laiddown bytheWTO
Agreements governing bothprocedures, aswellastheforms already usedbyother Member countries.G/ADP/Q1/PRY/4
G/SCM/Q1/PRY/4
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13. What criteria areusedtodetermine that"sufficient evidence" hasbeenprovided within
themeaning ofArticle 8.5andingeneral ininvestigations intounfair practices ininternational
trade?
Itisconsidered thatsufficient evidence exists when, onthebasisofreliable andverifiable data,
itispossible toobserve theexistence ofunfair trade practices, theensuing injury tothedomestic
industry, andthecausal relationship between thetwo.
14. What does"sufficient evidence" toinitiate aninvestigation exofficio, within themeaning
ofArticle 8.5,involve?
Theexpression "sufficient evidence", asalready explained intheprevious reply, isdefined
inaccordance withtheprovisions ofArticle 8.5andparagraphs 8.3and8.4oftheDecree inquestion.
15. Article 5.5oftheAnti-Dumping Agreement establishes theobligation tonotify theexporting
Member oftheintention toinitiate aninvestigation before opening it.HowdoesParaguay claim
tofulfil thisobligation andwhat Article ofthenotified legislation provides forthis?
16. Article 13.1oftheDecree provides thattheMinistry shall notify theresolution forthe
initiation ofaninvestigation andatthesame timeprovide aquestionnaire andtherespective forms
tointerested parties andtheauthorities oftheexporting country where appropriate (emphasis
added). Inthisconnection, wewould likeclarifications astowhether thismeans thatthe
government oftheexporting country willnotalways benotified, andifthisisthecase,whatcriteria
areusedtodecide inwhich cases notification isnecessary andhowthisiscompatible withthe
obligation laiddown inArticle 5.5oftheAnti-Dumping Agreement?
15and16.Please refer toreply No.1.Asmentioned there, theimplementing authorities
willdetermine theappropriate administrative procedures toguarantee fullcompliance withArticle 5.5
oftheAnti-Dumping Agreement.
17. Article 14.3 provides thatusers from theproduction sectors oftheproducts under
investigation andtherepresentative consumer organizations shall begiven theopportunity to
provide anyinformation which isrelevant totheinvestigation regarding dumping orsubsidies,
injury andthecausal linkbetween thetwo. Willtheyhavethestatus ofinterested parties inthe
proceeding?
Where applicable, weinterpret thisArticle inthesense ofthelastparagraph ofArticle 6.11
oftheAnti-Dumping Agreement, aspermitting theinclusion ofconsumer organizations asinterested
parties.
18. Article 16.1establishes theobligation topublish thepreliminary resolution intheOfficial
Gazette. What isthetime-limit forpublication oftheresolution onceithasbeen issued bythe
Ministers concerned?
Ameasure mustbecommunicated immediately totheOfficial Gazette. Thedateofpublication
cannot bemore thanfiveworking daysfollowing thedateoftheResolution.
19. What do"expedited" and"promptly" mean, interms oftime, inconnection with the
investigating authority 'sobligation toestablish individual dutyratesforother exporters asprovided
forinArticle 19.2?G/ADP/Q1/PRY/4
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Thewords "expedited" and"promptly" should beunderstood asmeaning thattheauthority
willproceed asrapidly aspossible todetermine adutyfortheexporter, inashorter timethantheperiod
usedinthecourse ofanormal investigation.
20. Article 21.4ofthenotified Decree refers totheconcept of"critical circumstances". What
criterion willtheMinistry usetodetermine such"critical circumstances" within themeaning of
thisprovision?
Article 21.4 oftheDecree itself establishes thesituations thatcangiverisetocritical
circumstances, particularly astotheexistence ofa"injury which isdifficult torepair" inaccordance
withtheWTO Anti-Dumping Agreement.
21. Article22.1statesthatanyanti-dumpingandcountervailingdutyshallbeterminatedwithin
fiveyears atmost. Iftheprocedure established inArticle 23isnotrequested, willtheduties be
terminated automatically ormust thisberequested byinterested parties? Willthetermination
beeffected bymeans ofabiministerial orministerial resolution orsimply byadecision ofthe
Ministry concerned?
Termination willbeautomatic, andthetime-limit fortermination willbelaiddown inthe
Resolution establishing themeasure.
22. How doesthereview procedure fordefinitive duties established inArticle 24operate?
What evidence must theimporter provide inthisprocedure?
When themargin ofdumping andthecorresponding dutyhavebeendetermined inaccordance
withthecomparison between thenormal value andtheexport price, theimporter maysubmit evidence
showing thattherehavebeenchanges insome ofthesevariables, andthatthishasresulted inareduction
orelimination ofthemargin ofdumping onthebasis ofwhich theduties were calculated.
23. Article 24.2states thatwhere dutypaidinexcess hastoberefunded, therefund willbe
established inaministerial resolution. Does thisresolution have tobepublished intheOfficial
Gazette?
TheResolution willbepublished intheOfficial Gazette.
24. HowdoesParaguay consider thatitfulfils itsobligation todisclose theessential factsthat
itwilltakeintoaccount forissuing itsfinal resolution, asprovided forinArticle 6.9ofthe
Anti-Dumping Agreement, andwhere intheDecree isthisobligation provided for?
ThejointMinisterial Resolution establishing afinalmeasure mustdisclose theessential facts
taken intoconsideration forissuing thefinalresolution. Please refertoreply No.1.
Question from theUnited States concerning Decree No.15,286/96
1. Article 12.5 ofDecree No. 15,286 of28October 1996 (G/ADP/N/1/PRY/2-
G/SCM/N/1/PRY/2, page11)states that,onceithasbeenestablished thatanapplication provided
byanymember ofaMercosur country meets theDecree 'srequirements andhasbeen duly
substantiated, thegovernment oftheexporting country shallbenotified. Please indicate whether,
inaccordance withArticle 5.5oftheAnti-Dumping Agreement, non-Mercosur countries shall
alsobenotified aftertheGovernment ofParaguay hasreceived aproperly documented application
andbefore itproceeds toinitiate ananti-dumping dutyinvestigation.G/ADP/Q1/PRY/4
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With regard totheimplementation ofanti-dumping measures, itshould bestressed thatthe
Government ofParaguay wishes thistrade policy instrument tobeusedstrictly inaccordance with
theprovisions oftheAnti-Dumping Agreement, withtheprimary objective ofguaranteeing therights
ofallMembers oftheWorld Trade Organization (WTO). Tothisend,ourcountry fullyincorporated
theUruguay Round Final Actintoitslegislation through LawNo.444of10November 1994.
Decree No.15,286, of28November 1996 designates theMinistries ofIndustry andTrade
andofFinance toimplement LawNo.444/94 inmatters relating tothe"Agreement onImplementation
ofArticle VIofGATT 1994" andthe"Agreement onSubsidies andCountervailing Measures", and
laysdown theapplicable procedures.
Under theNational Constitution ofParaguay, enacted lawstakeprecedence overdecrees.
Accordingly, Law444/94 constitutes thelegalauthority fortheapplication ofmeasures todealwith
unfair trade practices, andinspecific matters notreferred toinDecree 15,286/96 theprocedure laid
down intheLawistobefollowed.
2. Article18.4DecreeNo.15,286of28October1996(G/ADP/N/1/PRY/2G/SCM/N/1/PRY/2,
page14)states thatadetermination nottoimpose ameasure maybemade when itisconcluded
thatsuchmeasures would result inmaterial injury tothenational economy. Please clarify how
suchmaterial injury would beevaluated bytheadministering authority.
Article 18.4ofDecree 15,286/96 refers tovarious considerations relating tothecountry 'spublic
policy, withregard tothereconciliation ofthevarious sectors ofsociety (producers, consumers or
users'associations). These considerations willbetaken intoaccount inaccordance withtheWTO
Anti-DumpingAgreementandtheinterpretationsstemmingfromtheworkofspecialistsintheCommittee
onAnti-Dumping Practices.
3. Isitcorrect thatwherever Paraguay 'sLaw No.444/94, andthisDecree No.15,286
implementing thatlaw,aresilent onanissue covered bytheAnti-Dumping andSubsidies and
Countervailing Measures Agreements, theAgreements willprevail?
Asmentioned above inreply No.1,Decree 15,286/96 isbased ontheprovisions oftheWTO
Anti-Dumping Agreement. Moreover, anyinterpretations thathavetobemade willtakedueaccount
oftheprovisions oftheAgreement andrecommendations stemming from thework ofthepanels of
experts established bytheCommittee onAnti-Dumping Practices.