G/ADP/N/1/BRA/3/Suppl.11  
G/SCM/N/1/BRA/2/Suppl.14  
G/SG/N/1/BRA/3/Suppl.5  
 
31 January 2019 
(19-0527) Page: 1/5 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  
Committee on Safeguards  Original: English  
 
NOTIFICATIONS OF LAW S AND REGULATIONS UN DER 
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGRE EMENTS  
BRAZIL 
Supplement  
The following communication, dated 2 3 January 201 9, is being circulated at the request of the 
delegation of Brazil.  
 
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MINISTRY OF INDUSTRY , FOREIGN TRADE AND SERVICES  
SECRETARIA T OF FOREIGN TRADE  
ORDINANCE No. 41, DATED 31 JULY 2018  
Provides for the necessary information to qualify the 
national production of a particular product as 
fragmented industry for purposes of trade defense, 
according to Decree No. 9.107, dated 26 July 2017.  
THE SECRETARY OF FOREIGN TRADE OF THE MINI STRY OF INDUSTRY, FOREIGN TRADE AND 
SERVICES, in the exercise of the duties conferred by article 18, sub -paragraph II of the Annex I of 
Decree No. 9.260, dated 29 December 2017, and taking into account the provisions of 
Decree  No. 9.107, dated 26 July 2017, resolves as follows:  
CHAPTER I  
GENERAL INFORMATION  
Article 1. The Department of Trade Remedies - DECOM will determine whether the national 
production of a particular product qualifies as fragmented industry, subject to the provisions of this 
Ordinance.  
Paragraph 1. It is considered a fragmented industry on e which involves a large number of 
domestic producers.  
Paragraph 2. The determination foreseen in paragraph 1 shall consider, among other factors, the 
degree of pulverization of the national production of the product concerned and the distribution by 
size of national producers.  
Article 2. The qualification procedure referred to in article 1 shall be concluded before the 
submission of the application of the trade remedy investigation.  
Paragraph 1. The qualification as fragmented industry shall be requested b y: G/ADP/N/1/BRA/3/Suppl.11 • G/SCM/N/1/BRA/2/ Suppl.14 • G/SG/N/1/BRA/3/Suppl.5  
 
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  I - domestic producers of the like product or their representative trade associations, in cases of 
dumping investigation or actionable subsidies; or  
II - domestic producers of the like product or directly competitive products or their representative 
trade associations, in cases of investigation with a view to the imposition of safeguard measures.  
Paragraph 2. The request referred to in this article shall be prepared in accordance with the 
provisions of Chapter III of this Ordinance.  
Article 3. Requests f or qualification that do not comply with the requirements of this Ordinance or 
that require significant corrections, adjustments or supplementary information which cannot be 
presented under the terms of the paragraph 2 of article 11, may be denied.  
Article  4. All information submitted shall be accompanied by relevant evidence, justification and 
sources and methodologies used.  
Paragraph 1. DECOM may use information contained in governmental entities or public records or 
databases to establish its final decis ion. 
Paragraph 2. On -the-spot investigation may be conducted by DECOM to confirm the information 
submitted to justify the request for qualification of the national production of a particular product 
as fragmented industry.  
Article 5. One confidential versi on and one non -confidential version of the request shall be filed 
simultaneously.  
Article 6. Filed documents not labeled "confidential" or "restricted" shall be regarded as public 
documents.  
Article 7. The qualification of the national production of a part icular product as fragmented industry 
will remain valid until otherwise decided by DECOM.  
Article 8. The request for qualification as fragmented industry shall be filed with the General 
Protocol of the Ministry of Industry, Foreign Trade and Services, loca ted in "Esplanada dos 
Ministérios, Bloco J, andar térreo, Brasília - DF, CEP 70.053 -900".  
Article 9. Questions and clarification requests shall be sent to DECOM at e -mail address 
decom@mdic.gov.br.  
CHAPTER II  
QUALIFICATION PROCEDURE  
Article 10. The date of  initiation of the qualification procedure as fragmented industry shall be the 
protocol date of its request.  
Article 11. The request for qualification as fragmented industry shall be examined within a period 
of fifteen days from its protocol date.  
Paragrap h 1. Where the request is properly documented and does not require supplementary 
information, at the end of the period of examination referred to in the chapeau, the applicant shall 
be notified of  DECOM's decision and its reasoning.  
Paragraph 2. Supplement ary information may be requested to the applicant, who shall present 
them within a period of five days from the date of acknowledgment of the request, period which 
may be extended for further five days, upon request and when duly justified.  
Paragraph 3. Su pplementary information shall be examined within a period of ten days from the 
date of the receipt thereof.  G/ADP/N/1/BRA/3/Suppl.11 • G/SCM/N/1/BRA/2/Suppl.14 • G/SG/N/1/BRA/3/Suppl.5  
 
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  Paragraph 4. At the end of the period established in paragraph 3, the appli cant shall be notified of 
DECOM' s decision and its reasoning within a per iod of two business days.  
Paragraph 5. Once the qualification as a fragmented industry is granted, the application for trade 
remedy investigation shall be filed within the period of time  defined by DECOM in the notification 
referred to in paragraphs 1 and 4 of this article, period which shall never exceed ten months of the 
end of the period of investigation referred to in article 17 of this Ordinance.  
Paragraph 6. If the application for t rade remedy investigation is not filed within the time limit 
defined by DECOM, as provided in paragraph 5 of this article, a new request for qualification of the 
national production of a particular product as fragmented industry shall be filed.  
Paragraph 7 . Where the qualification as a fragmented industry is denied, the application for trade 
remedy investigation shall be prepared exclusively using the format required by SECEX in the acts 
that regulate the trade remedies procedures for non -fragmented industr ies. 
Article 12. Upon initiation of the trade remedy investigation, interested parties may submit their 
comments on  DECOM's decision to qualify the national production of the product concerned as 
fragmented industry within the period of thirty days from th e date of publication of the SECEX 
notice which publicly announces the initiation of the investigation.  
Paragraph 1. All information submitted shall be accompanied by relevant evidence, justification 
and sources and methodologies used.  
Paragraph 2. The dom estic industry, whose production of the product subject to trade remedy 
investigation has been qualified as a fragmented industry, may submit its comments within a 
period of up to fifteen days from the end of the period referred to in the chapeau.  
Paragrap h 3. DECOM's decision on the maintenance of the status of the national production of the 
product subject to trade remedy investigation as a fragmented industry, after considering all the 
evidence brought by the interested parties, shall be informed within a period of up to sixty days 
from the end of the period referred to in paragraph 2.  
Paragraph 4. If the decision referred to in the chapeau is reversed, the trade remedy investigation 
shall be immediately terminated, without examination on the merits.  
Article 13. In accordance with the provisions of article 7 of this Ordinance, the qualification of the 
national production of a particular product as a fragmented industry may be used for the 
petitioning of other trade remedies procedures at a later date than the period provided for in 
paragraph 5 of article 11 of this Ordinance, after consulting DECOM.  
Paragraph 1. The consultation referred to in the chapeau shall be made by means of a document 
directed to DECOM and shall contain the decision referred to in th e chapeau of article 12 and the 
information mentioned in article 15, in item XII of article 16 and in articles 17 and 18 of this 
Ordinance.  
Paragraph 2. DECOM shall decide on the use of a previous qualification within a period of fifteen 
days from the date  of the consultation filing referred to in the chapeau.  
Paragraph 3. At the end of the period mentioned in paragraph 2, th e applicant will be notified of 
DECOM's decision and of the deadline to file its petition.  
Article 14. DECOM may initiate a review pro cedure to decide on the fragmentary status granted, 
ex officio or at the request of any interested party in the trade remedy investigation initiated under 
the terms of this Ordinance, who submit a written petition containing evidence that the 
circumstances  that justified the qualification of the national production of a particular product as 
fragmented industry have changed.  G/ADP/N/1/BRA/3/Suppl.11 • G/SCM/N/1/BRA/2/ Suppl.14 • G/SG/N/1/BRA/3/Suppl.5  
 
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  CHAPTER III  
REQUEST CONTENT  
Article 15. The request for qualification as fragmented industry shall contain:  
I - information concerning  the corporate name, complete address, telephone number and e -mail 
address of the applicant;  
II - name, job position, complete address, telephone number and e -mail address of the legal 
representative at DECOM;  
Article 16. The request for qualification as f ragmented industry shall contain, in relation to the 
domestic like product or, in cases of investigation for the imposition of a safeguard measure, to 
the like product or the directly competitive product, the following information regarding the 
calendar ye ar prior to the filing of the request, which may, exceptionally and duly justified, be 
prior to this period:  
I - description, in detail, specifying, as applicable: raw material(s); chemical composition; physical 
characteristics, technical standards and spe cifications, production processes, uses and 
applications, interchangeability and channels of distribution;  
II - any other characteristic considered relevant to the identification of the product produced by 
the applicant;  
III - indication of the item(s) of the MERCOSUR Common Nomenclature under which the product 
to be assessed is commonly classified;  
IV - number of domestic producers or an estimation;  
V - volume of the national production or its estimation;  
VI - volume of sales in Brazilian market or its es timation;  
VII - distribution of the national producers by size or an estimation, based on sales revenue or 
number of employees, or based on a commonly adopted criterion in the sector;  
VIII - geographical distribution of the national producers or its estimation;  
IX - existence of association or class entity of the national producers and the number of associated 
companies;  
X - listing of known domestic producers;  
XI - individual production of the known domestic producers referred to in item X of the cha peau or, 
where this is not possible, the individual production of the largest known domestic producers;  
XII - indication of the period considered necessary for the filing of the petition referred to in 
paragraph 5 of article 11 of this Ordinance.  
Paragraph  1. The information listed in the chapeau do not constitute an exhaustive list, and none 
of the them on its own or together can necessarily give decisive guidance.  
Paragraph 2. The information listed in the chapeau shall be accompanied by relevant evidence . 
Paragraph 3. Where the information listed in the chapeau is presented on estimation basis, the 
applicant shall comply with the provisions of article 53 of Decree No. 8,058, dated 26 July 2013.  
Paragraph 4. If the separate identification of the production  of the product is not possible, the 
information may be submitted on the basis of the production of the narrowest group or range of 
products, which includes the domestic like product, or, in cases of investigation for the imposition G/ADP/N/1/BRA/3/Suppl.11 • G/SCM/N/1/BRA/2/Suppl.14 • G/SG/N/1/BRA/3/Suppl.5  
 
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  of a safeguard measure,  to the like product or the directly competitive product, for which the 
necessary information can be provided.  
Article 17. The request for qualification as a fragmented industry shall indicate the period with 
which will be documented the petition referred to in the chapeau of article 2 of this Ordinance, 
concerning:  
I - investigation of injury and threat of injury, in dumping investigations or countervailable 
subsidies investigations; or  
II - investigation of serious injury or threat of serious injury, in c ases of investigation for the 
imposition of a safeguard measure.  
Article  18. The applicant shall explain, based on the information indicated in article 16 and other 
information deemed relevant for the examination to be conducted by DECOM, how the 
fragmentary nature of the industry would make it difficult to file petition for a  trade remedy 
investigation within the time limits set forth in the Brazilian trade defense regulations and in 
SECEX acts that regulate trade defense procedures for non -fragmented industries.  
Paragraph 1. DECOM shall consider the explanation presented by t he applicant under the terms of 
the chapeau, in assessing the petition for trade remedy investigation filed pursuant to paragraphs 
1 and 4 of article 11 or of article 13 of this Ordinance.  
Paragraph 2. Where the factors that motivated the qualification of a given national production as a 
fragmented industry are not confirmed by DECOM in the assessment referred to in paragraph 1, 
the petition for trade remedy investigation may be rejected, as well as the qualification of the 
production as a fragmented indust ry may be cancelled under the terms of article 7 of this 
Ordinance.  
CHAPTER  IV 
FINAL PROVISIONS  
Article  19. This Ordinance shall enter into force on the date of its publishing.  
ABRÃO MIGUEL ÁRABE NETO  
 
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