G/ADP/AHG/W/199  
 
23 September 2013  
(13-5066)  Page: 1/2  
Committee on Anti-Dumping Practices 
Working Group on Implementation  Original: English  
 
 ARTICLE 5.3 – ACCURACY AND ADEQUACY TEST 
PAPER BY BRASIL 
The following communication, dated 19 September 2013, is being circulated at the request of the 
Delegation of Brazil. 
 
_______________ 
  
1  INTRODUCTION 
In response to the call of the Committee on Anti-Dumping Practices for papers on topics for 
discussion at the Working Group on Implementation  Meetings, Brazil is pleased to submit the 
following paper describing the practice of the Department of Trade Remedies (DECOM), Brasília, 
Brazil, regarding the accuracy and adequacy test  set forth in Article 5.3 of the Anti-Dumping 
Agreement.  
 
2  BRAZILIAN LEGAL FRAMEWORK 
The domestic legal framework in Brazil for the proceedings on antidumping investigations will pass 
through its first major change since 1995 with the entering into force of Decree nº 8.058/2013 on 
1 October. The new AD regulation will replace Decree nº 1.602/1995. 
 The new regulation codifies current practices of the Department which were not set forth by the 
previous Decree nº 1.602/1995. In addition, Decree nº 8.058/2013 also foresees new provisions 
aimed at ensuring greater predictability and agility to antidumping investigations.  
One of the most significant changes regards th e Department’s approach to the accuracy and 
adequacy test, as stated in Article 5.3 of the AD Agreement.  In practical terms, the new Decree establishes a two-step approach. The first step — called the 
"pre-petition phase" — is characterized by info rmal contact between the potential applicant and 
the Department aimed at clarifying issues concerning the elaboration of a petition. This pre-petition phase will become particularly crucial under the new regulation due to the detailed 
application kit required from applicants since Po rtaria Secex nº 46/11 — updated according to the 
provisions of the new regulation — and the new deadlines set forth by Decree nº 8.058/2013. The 
purpose is to enhance the quality of the petitions not only on formal aspects but also in what 
concerns the substance of the evidence submitte d, anticipating the request of information and 
granting more predictability and agility once the investigation is initiated.  The second step is the assessment of the petition o fficially submitted. Firstly, the Department will 
analyse whether the petition contains all information required in the checklist set forth by Portaria 
Secex. In this regard, one significant change  brought about by the Decree nº 8.058/2013 is 
associated with the standing test, which determines whether the petition has been made by or on 
behalf of the domestic industry. Henceforth, the statement of support for or opposition to an 
application shall only be considered when accompanied by information concerning volume or value of production and volume of sales. Besides, the domestic producers stating support for the 
application shall also provide all needed information for the determination of injury to the domestic 
industry. These requirements contribute to the a ssessment of whether there is sufficient evidence G/ADP/AHG/W/199 
 
- 2 - 
 
  to justify the initiation of an investigation, as stated in Article 5.3, since they provide evidences 
that should otherwise be acquired by other means.  Finally, the Department will assess the quality of th e evidence submitted. Here lies one of the most 
significant changes foreseen by the new regulation. The Decree nº 8.058/2013 establishes a 
maximum deadline of 30 days for the assessment of the petition. The deadline can be extended once, for the same period of 30 days. Therefore, the new legal framework is designed to enhance 
the quality of petitions, through intense cooperation prior to the official submission of a petition, 
increasing the predictability and agility of the investigations.   3  THE PRACTICE OF THE DEPARTMENT 
Based on the information reasonably available to the applicant contained in the petition 
(article 5.2), the Department will assess the accuracy and adequacy of the evidence pursuant to Article 5.3. 
 
With respect to the determination of the domestic market and the support for or opposition to an application, the Department may obtain information from other government agencies. This 
includes customs and import statistics (which pe rmits to identify the importer, exporter and the 
foreign producer, as well as the declared descr iption of the product), product information, 
standards and reports on any other factor that  could be injuring the domestic industry. 
Furthermore, the Department could also request information directly from associations and other 
known producers, provided that the information is treated as confidential.  
 In what concerns the evidence regarding normal value, it must be considered that applicants find 
it quite difficult to obtain market information in other jurisdictions. Therefore, the Department will 
try to obtain additional information including through international agencies specialized in market research and foreign trade statistics. 
 
4  CONCLUSION 
The new Brazilian legal framework provides for a detailed yet practical approach to assess the 
accuracy and adequacy of the information provided by applicants. It is a two-step approach. The 
first step — called the "pre-petition phase" — enables applicants to clarify issues regarding the 
elaboration of the petition. The aim is to contribute to high quality petitions, not only on formal aspects but also in what concerns the quality of  the evidence submitted. The second step is 
focused on the analysis of the quality of the evidence of an officially submitted petition. In sum, 
this approach is designed to increase the quality of petitions.  
__________