G/ADP/Q1/CRI/16  
G/SCM/Q1/CRI/16  
G/SG/Q1/CRI/10   
27 October 2020  
(20-7508) Page: 1/5 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  
Committee on Safeguards  Original: Spanish  
 
  
NOTIFICA TION OF LAWS AND REGULATIONS  
UNDER ARTICLES 18.5, 32.6 AND  
 12.6 OF THE AGREEMENT  
REPLIES  TO QUESTIONS POSED BY THE UNITED STATES1 
REGARDING THE NOTIFICATION OF  COSTA RICA2 
The following communication, dated 2 7 October 2020, is being circulated at the request of the 
delegation of Costa Rica.  
 
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Question  1 
Under Chapter III Article 6, the rules of procedure state that "the following practices shall 
be considered to constitute circumvention, where the int ention to evade an existing anti -
dumping, countervailing, or safeguard measure is demonstrated;" however, the law does 
not provide a practice or other guidance for establishing "intent" to evade duties. Please 
explain whether the investigating authority mu st separately determine whether there is 
intent to evade duties when one of the listed circumvention practices is found to exist or 
if the practices listed in Article 6 are deemed to demonstrate intent without further 
evidence. If the investigating authori ty is required to make an affirmative finding with 
regard to intent to evade an existing measure, please explain the criteria by which the 
investigating authority makes this determination.  
Replies : 
In the context  of the rules under review, the investigating authority , by means of an investigatory 
process,  shall determine whether there is intent or not, on the part of the economic agent or natural  
person, to evade the duties applied by Costa Rica as regards trade defence , throu gh one or more of 
the practices regulated under  Article 6 . The investigation shall be initiated  at the request of the 
interested production sector or interested natural or legal person (Article 7 of the rules). The request 
must be based on objective eviden ce of the facts alleged (Article 8 and 9 of the rules). Once the 
investigation has been initiated, the investigating authority  shall request  evidence  from the 
interested parties  to determine  the merits of the case . Evidence shall be verified by the investigating 
authority  by means of on -the-spot visits. Once this verification has taken place, the investigating 
authority  shall proceed to examine and analyse such  evidence to reach a final determination, 
whether affirma tive or negative, on the request submitted. The foregoing is pursuant to the 
provision s of Articles 10, 14 and 15 of the rules. 
 
1 G/ADP/Q1/CRI/15 - G/SCM/Q1/CRI/15 - G/SG/Q1/CRI/9.  
2 G/ADP/N/1/CRI/3/Suppl.1 - G/SCM/N/1/CRI/4/Suppl.1 - G/SG/N/1/CRI/4/Suppl.1 (d ated 
29 November  2019). For the sake of efficiency , the United States suggests that committee review for these 
questions be c onducted in the Committee on Anti -Dumping Practices . G/ADP/Q1/CRI/16 • G/SCM/Q1/CRI/16 • G/SG/Q1/CRI/10  
 
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  In each specific case, the investigating authority  should make a determination  of circumvention of 
the measure based on objective, clear and sufficient evidence, in accordance with the provisions of 
Articles 5 and 9 of the rules. 
"Article 5.- Establishing circumvention of anti -dumping, countervailing or safeguard 
measures . To establish that a trade defen ce measure has been circumvented, the IA must, 
on the basis of satisfactory evidence, determine that there has been a significant change in 
the pattern of trade of the product under investigation, vis -à-vis either the country subject to 
the trad e defen ce measure or third countries . The change must have resulted from one or 
more of the practices set out below and there must be found to be prejudice to or impairment 
of the remedial effects of the trade defen ce duty in effect ." 
"Article 9.- Requirements for request . A request for an anti -circumvention investigation 
must include the following : 
(…) 
(d) Objective, clear and sufficient evidence of the circumvention practice, in accordance with 
the definition of circumvention contained in these ru les and Articles 5 and 6 hereof . 
(…)" 
Question  2 
Chapter III Article 6 subclauses (a) -(d) refers to "a product like the product subject to 
the trade defence measure." Is "a product like the product subject to the trade defence 
measure" equivalent for the purposes of this law to a "like product" as defined in 
Chapter  II General Definitions, Abbreviations, and Acronyms, or does it have some 
different meaning ? 
Replies : 
Yes, a product defined as  a "product subject to the trade defence measure" refers to a "like product ". 
In the case of safeguard measures, it also refers to a directly competitive product . 
Question  3 
Under Chapter III Article 6(d), the importation of slightly modified products so that they 
are "to be brought under different tariff lines that are not subject to trade defence 
measures, provided that the modifications do not alter the essential characteristics of the 
product and its end use" is considered circumvention. Are there guidelines or criteria by 
which the investigating authority determi nes whether differences alter the "essential 
characteristics" of a product and its end use? How does the investigating authority 
determine or verify the end use of a product, given that many products have multiple uses 
or applications and the end use may n ot be dictated by physical characteristics or 
properties ? 
Replies : 
It is for the investigating authority  to determine, on a case -by-case basis, whether the differences 
observed in the imported product alter the "essential characteristics" of the product and its end use  
for the application  of the provisions of Article 6(d) of the rules . Determinations are based on evidence 
provided by the parties,  evidence obtained  by the investigating authority , on-the-spot verifications 
or laboratory analysis. Al l the foregoing derives  from the powers of investigation granted to the 
investigati ng authority by  Article 26 of the rules and other relevant regulations . G/ADP/Q1/CRI/16 • G/SCM/Q1/CRI/16 • G/SG/Q1/CRI/10  
 
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  Question  4 
Under Chapter III Article 6(b), please provide more detail on how the importation of a 
product "via third countries" would be determined to be circumvention. How will a 
determination of origin be made for purposes of this provision? Will the investigating 
authority trace the origin of the products ? 
Replies : 
Yes, in order to determine whether the behavio ur under investigation  is in line  with the provisions 
of Article 6(b) of the rules under review , the investigating authority  would carry out a traceability 
proce dure of the product under investigation  in collaboration with the General Directorate of Customs 
of the Ministry of Finance, pursuant to Article 26 of the rules in question . 
Question  5 
Chapter III Article 6(h) acts as a catchall for any other "circumvention behaviour which 
is shown to undermine the remedial effects of the trade defen ce measures imposed". 
Please explain how it is determined that a behavio ur acts to "undermine" an existing trade 
measure and explain how this determination would be used to make a circumvention 
determination . 
Replies : 
As stipulated under Article 6(h),  there may be other situations , which  are not included  in the above 
list, that  might be considered as undermining the remedial effect s of the trade defen ce measures  
imposed . Such situations should be evaluated on a case-by-case basis, taking into account the 
information provided by the requesting produc tion sector to the investigating authority . This 
information should be verified in accordance with the law . Once the investigation has been initiated , 
all parties will be given an opportunity to submit  comments and relevant evidence . By means of  an 
analysis of any type of relevant evidence, a determination will be made as to whether an alleged  
practice may or may not undermine a trade defen ce duty imposed by  Costa Rica.  
Question  6 
Under Chapter IV "Admissibility of Request to Initiate Anti -Circumvention Investigation" , 
there is no reference to public notification of a request to investigate circumvention. 
Please explain how and through what means the public is notified of a request for an 
investigation into circumvention of a measure. Furthermore, will interested partie s be 
granted an opportunity to obtain a non -confidential version of the request for an 
anti-circumvention investigation prior to any decision to initiate? Please explain the 
opportunities to comment on the sufficiency of a request to investigate alleged 
circumvention prior to initiation . 
Replies : 
There is no prior publication or access to information before  the formal opening of an 
anti-circumvention investigation . The rules under review follow the guidelines and  procedural 
principles of the WTO Agreements and Central American regulations on anti -dumping, countervailing 
and safeguard measures . Once an investigation has been initiated, a copy of the request to initiate 
an investigation is attached to a copy of the resolution regarding initiation . Under Article 11 of the 
rules, interested parties may appeal , inter alia , the resolution regarding  the initiation of an 
investigation . 
Question  7 
Under Chapter IV Article 10, the investigating authority must notify all interested parties 
named in a request for a circumvention investigation of a decision to initiate. How will 
this be done? Will only the parties named in the request be subject to a ci rcumvention 
investigation or will other interested parties be identified or have an opportunity to 
participate? Please explain any registration requirements for parties to retain their rights G/ADP/Q1/CRI/16 • G/SCM/Q1/CRI/16 • G/SG/Q1/CRI/10  
 
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  as interested parties in the investigation. Will the governments  of the exporting 
company(ies) be notified of initiation even if they are not explicitly listed in the request ? 
Replies : 
The resolution regarding  the initiation of the anti -circumvention investigation will be published in the 
Official Journal  of the Costa Rican Government , La Gaceta , under existing  procedural rules on trade 
defen ce and as Article 27 of the rules establishes that the provisions of public and private law may 
be applied on a supplementary basis to case s not provided for in these rules . Also, the resolution 
regarding  the initiation of an anti -circumvention investigation will be notified to the requesting 
produc tion sector, the importers and exporters of the product in question and the government of 
origin of the exporting companies  (these are considered interested parties per se  under  Article 14 
of the rules) . 
Moreover , in the resolution  regarding initiation , natura l or legal persons demonstrating a direct 
interest in the procedure  and meeting the necessary requirements shall be granted  a period of 
eight working days to be considered as interested parties . 
In order for parties to retain  their rights as parties to the procedure, they should be accredited as 
such in the case file submitted  in each specific  case, in accordance with  Costa Rican law. 
Question  8 
Will the Technical Report discussed under Chapter V Article 20 be released publicly or 
distributed to interested parties? If so, will there be an opportunity for interested parties 
to comment on the technical report before the decision of the Minister of the Economy, 
Industry and Trade ? 
Replies : 
The technical report will not be a vailable to interested parties until the Minister has made a final 
decision on the request and issued a final decision  on the case . At that point, the technical report 
will be added to the case file , to which all parties have access . Notwithstanding the above , parties 
will have the opportunity  to submit  comments on the report on essential facts , pursuant to Article  18 
of the rules under review . 
Question  9 
Under Chapter V Article 21, the Minister of the Economy, Industry and Trade has t he 
authority to deviate from the technical report if the decision is justified technically. 
Beyond this required justification of any deviation, are there any other limitations on the 
Minister's power to deviate from the technical report? Does the Minister  have the 
authority to broaden the finding to include other exporters or products? Does the Minister 
have any authority to change the form of remedy by which the circumvention measure is 
applied ? 
Replies : 
The Minister must reach a decision  on the basis of the case file  and the technical report prepared by  
the investigating authority , concluding its investigation . Also, pursuant to Article  19 of the rules 
under review and Costa Rica 's General Public Administration Law , the hearing , which take s place as 
part of the investigat ion, concludes the evidentiary period . 
Question  10 
If an interested party does not comply with a request for information, or if their reply is 
incomplete or unsatisfactory, what is the investigating authority aut horized to do as a 
response to this lack of cooperation or perceived lack of cooperation ? G/ADP/Q1/CRI/16 • G/SCM/Q1/CRI/16 • G/SG/Q1/CRI/10  
 
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  Replies : 
In cases in which  any interested party refuses  access to , or otherwise does not provide,  necessary 
information for determin ing the merits of the case within the period  indicated by the investigating 
authority , the administration shall make  a decision  on the basis of the facts available . This is due to 
the fact that it would be applying on a supplementary basis , pursuant to Article 27 of the rules under 
review, the provisions of Article 6.8 of the Anti -Dumping Agreement and Article 12.7 of the 
Agreement on Subsidies and Countervailing Measures . 
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