G/ADP/Q1/BRA/37  
G/SCM/Q1/BRA/37  
G/SG/Q1/BRA/6  
 
26 April 2018  
(18-2617) Page: 1/3 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  
Committee on Safeguards  
 Original: English  
 
 
NOTIFICATION OF LAWS  AND REGULATIONS UNDE R 
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGRE EMENTS  
REPLIES TO QUESTIONS POSED1 BY THE UNITED STATES  
REGARDING THE NOTIFI CATION OF  BRAZIL2 
The following communication, dated 25 April 2018, is being circulated at the request of the 
Delegation of Brazil . 
 
_______________  
 
 
Question 1  
 
Please clarify whether the fragmented industry findings described by the Decree are limited to 
Brazilian domestic industries in trade remedy proceedings or wheth er a fragmented industry 
determination could also be made with regard to industries in the country of export.  
 
Reply : 
 
The fragmented industry findings described by the Decree are limited to Brazilian domestic 
industries in trade remedy proceedings.  
 
Ques tion 2  
 
Please provide an indication, if available, as to when the legal act referenced in Article 2 of the 
Decree, which will set forth the information that is to be included in the application to be filed by 
the investigated fragmented industry, will be published.  
 
Reply :  
 
Brazil cannot yet provide an indication as to when such act will be published. There have been 
internal discussions regarding the matter, but the modernization of other legal acts related to 
trade remedies in Brazil has been prioritiz ed. 
 
Question 3  
 
Please clarify whether industries will be required to make an application to be treated as 
fragmented industries, or will the administering authority examine the structure of industries on its 
own initiative? If this varies by case, please describe the fac ts which would lead the investigating 
authority to undertake an examination of an industry in order to make a determination as to 
whether it is fragmented for purposes of a trade remedy investigation, or whether the 
investigating authority will examine ind ustries in all investigations to determine whether they 
should be treated as fragmented.  
 
                                                
1 G/ADP/Q1/BRA/35 -G/SCM/Q1/BRA/35 -G/SG/Q1/4, dated 4 April 2018.  
2 G/ADP/N/1/BRA/3/Suppl.9 -G/SCM/N/1/BRA/2/Suppl.12 -G/SG/N/1/ BRA/3/Suppl.3 (dated 
8 February  2018).  G/ADP/Q1/BRA/37 • G/SCM/Q1/BRA/37 • G/SG/Q1/BRA/6  
 
- 2 - 
 
  Reply : 
 
Industries will be required to make an application to be treated as fragmented industries. This is a 
prerequisite for the establishment of a more flexible ti meframe for the submission of applications 
concerning trade remedy investigations.  
 
Question 4  
 
Please explain the consequence of an administrative finding of a fragmented industry. Are there 
any impacts on investigative procedures or findings other than timelines? For example, would a 
finding of a fragmented industry impact the determinations with r egard to other elements in an 
investigation, such as, for example, domestic industry support for an application, or the 
determination of injury? If so, please explain.  
 
Reply : 
An administrative finding of a fragmented industry would impact the timeline for  submission and 
analysis of applications and of supplementary information to the application. It would also impact 
the level of disaggregation of the information required in the application, given the difficulty such 
industries face regarding the collectio n of data for injury determination. Concerning domestic 
support for an application, the threshold for fragmented industries is the same as the one 
established in Article 5.4 of the Anti -Dumping Agreement for all other types of industries, i.e. 25% 
of the t otal production of the like product produced by the domestic industry. However, as is also 
foreseen in the ADA, the Brazilian authority may determine support and opposition for an 
application by using statistically valid sampling techniques in the case of fragmented industries. 
With regard to the determination of injury, the Brazilian investigating authority may accept an 
application whose injury data corresponds to less than 25% of the total production of the like 
product, in the case of fragmented industr ies. 
 
Question 5  
Please clarify if the rules described by the Decree apply only to original investigations, or do they 
apply to other types of trade remedy proceedings, such as reviews? If the latter, please list the 
types of proceedin gs to which the Decre e applies.  
 
Reply : 
 
The rules described by the Decree apply to all types of proceedings provided for in the Brazilian 
legislation regarding trade remedies which can be demanded by the Brazilian domestic industry 
and which require an injury determination.  
 
Question 6  
 
Please confirm that any impact on timelines following a finding of fragmented industry will not 
conflict with the investigatory timelines set forth in the Agreement on Implementation of Article VI 
of the General Agreement on Tariffs and Trade 1 994, the Agreement on Subsidies and 
Countervailing Measures , and the Agreement on Safeguards .  
 
Reply : 
 
Impacts on timelines following a finding of fragmented industry will not conflict with the 
investigatory timelines set forth in the aforementioned WTO a greements.  
 
Question 7  
 
For a fragmented industry, please explain what methodology ( e.g., statistically valid sampling 
techniques) the investigating authority will use to determine support for, and opposition to, the 
application.  
 G/ADP/Q1/BRA/37 • G/SCM/Q1/BRA/37 • G/SG/Q1/BRA/6  
 
- 3 - 
 
  Reply : 
 
The methodology will vary according to the information available in each case. Therefore, such 
methodology may consist of statistically valid sampling techniques, inquiries to business 
associations, among others.  
 
Question 8  
 
If the investigating authority determines that  an industry is fragmented, will all questionnaires and 
information submitted by producers of the like product be considered in the investigating 
authorities ' analysis of injury?  
 
Reply : 
 
All questionnaires and information submitted by producers of the lik e product will be considered in 
the investigating authorities’ analysis of injury. Nevertheless, it is worth mentioning that, due to 
the fragmented nature of the industry concerned, it is expected that it would be more common 
that petitioners base the inju ry part of their applications on reliable secondary sources of 
information, such as publications, studies and government reports, among others.  
 
 
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