G/ADP/N/1/SLV/3/Suppl.2  
G/SCM/N/1/SLV/3/Suppl.2  
G/SG/N/1/SLV/3/Suppl.2   
30 November 2022  
(22-8928) Page: 1/17 
Committee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures  
Committee on Safeguards  Original: Spanish  
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5, 32.6 AND 12.6  OF THE AGREEMENTS  
EL SALVADOR  
Supplement  
The following communication, dated and received on 28 November 2022, is being circulated at the 
request of the delegation of El Salvador.  
 
_______________  
 
 
Pursuant to Article 18.5 of the Agreement on Implementation of Article VI of the General Agreement 
on Tariffs and Trade 1994, Article 32.6 of the Agreement on Subsidies and Countervailing Measures 
and Article 1 2.6 of the Agreement on Safeguards, please find attached the text of the Regulations 
implementing the Special Law on Trade Defence, published in Official Journal No. 172, Vol. 416, of 
18 September 2017.  
REGULATIONS IMPLEMENTING THE SPECIAL LAW ON TRADE DEF ENCE  
CHAPTER I  
General Provisions  
Purpose  
Art. 1.- The purpose of the provisions established in these Regulations is to develop and ensure the 
implementation of the rules contained in the Special Law on Trade Defence, in order to fulfil the 
objectives thereof.  
Scope  
Art. 2.- These Regulations shall apply to all imports originating in and/or consigned from both 
WTO Members and non -Members by natural or legal persons, when such imports may cause injury 
or the threat of injury to a domestic indu stry or the retardation  of the establishment of such an 
industry.  
They shall also apply to all investigations into unfair trade practices and safeguard measures that 
are conducted under the Special Law on Trade Defence.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  CHAPTER II  
Special Substantive and Procedural Rules on Unfair Trade Practices  
Unfair trade practices  
Art. 3.- The provisions of this Chapter shall apply to dumping and subsidization practices, in 
accordance with the provisions of Titles II, III and VI of the Special Law on Trade Defence.  
Like domestic product  
Art. 4.- Pursuant to Article  4(i) of the Special Law on Trade Defence, "like domestic product" shall 
be understood to mean a product that is identical, i.e. alike in all respects, to the product under 
investigation.  
If the ex amination of likeness leads to a determination that there is no identical product, another 
product which, although not alike in all respects, has characteristics closely resembling those of the 
product under investigation shall be considered a like product . In examining likeness , the 
investigating authority may take into account:  
(a) the raw materials and other inputs used in producing the product;  
(b) the production process;  
(c) the physical characteristics and appearance of the product;  
(d) the end use or final destination of the product;  
(e) the substitutability of the product with the product under investigation;  
(f) the tariff classification; and/or  
(g) any other factor deemed relevant by the investigating authority.  
This list is not exhaustive , and n one of these factors, either on their own or together with others, 
will necessarily be sufficient to provide decisive guidance.  
Examination of likeness in investigations into unfair trade practices  
Art. 5.- The product under investigation shall be subject to two  separate examinations for the 
purpose of comparing likeness and these shall be undertaken on the basis of the criteria defined in 
the preceding Article. The first examination shall be undertaken in order to determine the margin of 
dumping and shall consist of a comparison between the product under investigation and the like 
product in the market of the exporting country. The second examination shall make a comparison 
between the product under investigation and the like domestic product.  
Verific ation of the degree of support for and opposition to the application for the initiation 
of an investigation into unfair trade practices  
Art. 6.- The investigating authority shall verify the degree of support for, or opposition to, the 
application for the i nitiation of an investigation submitted by or on behalf of the domestic industry, 
in accordance with Articles 47 and 49 of the Special Law on Trade Defence. To that end, the 
investigating authority may send notifications to domestic producers who, within f ive days from the 
day following receipt of the notification, shall express in writing their support for, or opposition to, 
the application. If no reply is received within the specified period, this shall indicate that there has 
been no expression of intere st on the part of the domestic producer concerned.  
Notification of interest in participating in an investigation into unfair trade practices  
Art. 7.- Any party with a legitimate interest in an investigation into unfair trade practices , as 
provided for in  Article 4(f)(7) of the Special Law on Trade Defence , may inform the investigating 
authority in writing of its interest in participating in the investigation, within 15 days following the 
publication in the Official Journal of the resolution initiating the i nvestigation.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  SECTION I  
Dumping  
Non-market economy countries  
Art. 8.- "Non-market economy country" shall be understood to mean a country in which the 
government determines economic activity mainly through a central planning mechanism.  
In a "non-market" economy, the goals of production, prices, costs, allocation of investment, raw 
materials, labour, international trade and the majority of other economic factors are determined 
under a national economic plan formulated by a central planning aut hority.  
Determination of the normal value in non -market economy countries  
Art. 9.- In the case of imports originating in non -market economy countries, the normal value shall 
be determined on the basis of the comparable price, in the ordinary course of trad e, at which the 
like product is sold for domestic consumption in a third country with a market economy (substitute 
country) or, failing that, for export, or on the basis of the price actually paid or payable in El Salvador 
for the like product, as duly adjusted.  
The prod uct used to determine the normal value must originate in the substitute country. When the 
normal value is determined according to the export price in a substitute country, that price shall be 
related to a market other than El Salvador.  
For the purpose of s electing and evaluating the relevance of selecting a particular country with a 
market economy from which to obtain the normal value, the investigating authority shall take into 
account, inter alia , the following criteria:  
1. Production processes in the sub stitute country and non -market economy country . 
2. The scale of production . 
3. The product quality.  
Calculation of anti -dumping duties  
Art. 10.- Pursuant to Article 63 of the Special Law on Trade Defence and whenever the information 
so permits and the char acteristics of the investigation so allow, the investigating authority shall 
examine whether the establishment of a duty less than the total dumping margin would be sufficient 
to eliminate the injury to the domestic industry, for which it may take into acc ount the following 
aspects:  
(a) The price of the imported product in the domestic market as compared to the price of 
the like domestic product . 
(b) The prices at which the product is sold in the domestic market . 
(c) The impact of the measures on the domest ic market.  
Notifications to the World Trade Organization in dumping investigations  
Art. 11.- Pursuant to Article 34 of the Special Law on Trade Defence, the investigating authority 
shall promptly notify to the WTO Committee on Anti -Dumping Practices the re solution initiating an 
investigation, as well as all anti -dumping measures adopted, whether preliminary or final.  
 G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  SECTION II  
Subsidies  
Period of investigation for subsidy calculations  
Art. 12.- The period of investigation (POI) for the purpose of subsidy calculations shall be 
determined in accordance with the first paragraph of Article 53 of the Special Law on Trade Defence.  
Methodological approach to calculating the rate of subsidization  
Art. 13.- In calculating the total rate of subsidization of the investigated product for a given foreign 
producer or exporter, a rate of subsidization of that product for the producer or exporter shall be 
calculated for each investigated subsidy or subsidy programme. The sum of the resulting per subsidy 
or per prog ramme rates shall be the total rate of subsidization of the product for that producer or 
exporter.  
The following methodology shall be applied in calculating the rate of subsidization:  
Total ad valorem  subsidization rate = ∑ TSav i 
Where:  
∑ TSav i= the sum of the ad valorem  subsidization rates for a producer or exporter in the investigation 
period i. 
To calculate the rate of subsidization of the investigated product for a foreign producer or exporter 
from a given investigated subsidy or subsidy pro gramme, the investigating authority shall first 
determine the total subsidy amount(s) received by that producer or exporter from the subsidy or 
programme in question and the date(s) of receipt thereof.  
Second, the investigating authority shall determine th e portion of the total subsidy amount that is 
attributable to the subsidy POI.  
Third, the investigating authority shall determine the total value during the subsidy POI of the 
relevant sales of the foreign producer or exporter to which the subsidy POI amou nt can be attributed.  
SUM= ΣPE i - ΣPESi 
Where:  
SUM= Subsidy amount per currency unit in investigation period i. 
PEi= Unsubsidized export price in investigation period i, net of the deductions and offsets specified 
in Article 16 of these Regulations.  
PESi = Subsidized export price in investigation period i. 
Fourth, the investigating authority shall calculate the ad valorem  rate of subsidization from the 
subsidy or programme by dividing the subsidy POI amount by the relevant sales value identified in 
the prev ious paragraph and multiplying the result by one hundred.  
SAV= (ΣSi * 100) / ΣVi 
Where:  
SAV= Ad valorem  subsidization rate.  
∑Si= The sum of all subsidization rates in investigation period i, net of the deductions and offsets 
specified in Article 16 of thes e Regulations.  
∑Vi= The sum of all sales in investigation period i. G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  Individual calculation of the amount of subsidization  
Art. 14.- The investigating authority shall determine an individual amount of subsidization for each 
known foreign producer or exporter concerned of the product under investigation.  
Notwithstanding the previous paragraph, in cases where the number of exporters, producers, 
importers or types of products involved is so large as to make it impracticable to determine an 
individual sub sidization amount for each known foreign producer or exporter concerned of the 
investigated product, the investigating authority may limit its examination to a reasonable number 
of interested parties or investigated products by using samples which are stat istically valid on the 
basis of information available to this authority at the time of the selection, or to the largest 
percentage of the volume of the exports from the country in question which can reasonably be 
investigated.  
Any selection of exporters, p roducers, importers or types of products made under this Article shall 
be chosen after consultation with the exporters, producers or importers concerned.  
In cases where the investigating authority has limited its examination as provided for in the previous  
paragraphs, the investigating authority shall nevertheless determine an individual subsidization 
amount for any foreign producer or exporter who voluntarily submits the necessary information in 
time for that information to be considered during the course of the investigation.  
Notwithstanding the previous paragraph, where the number of exporters or producers is so large 
that individual examinations would be unduly burdensome to the investigating authority and prevent 
the timely completion of the investigati on, the investigating authority may decline to determine 
individual subsidization amounts on the basis of such voluntary responses and limit its examination 
to the exporters and producers in the sample.  
Determination of the total subsidy amount received  
Art. 15.- The total subsidy amount, calculated in terms of the benefit to the recipient, shall be 
determined by the investigating authority on the basis of an appropriate methodology corresponding 
to the form of subsidy involved.  
Deductions and offsets  
Art. 16.- In determining the total subsidy amount received by the recipient foreign producer or 
exporter under an investigated subsidy or programme, or the total ad valorem  subsidization rate of 
the product under investigation for that recipient, the following elements shall be deducted, as 
appropriate:  
(a) any application fee, or other costs necessarily incurred in order to qualify for, or to 
obtain, the subsidy;  
(b) export taxes, duties or other charges levied on the export of the product to 
El Salvador , specifically intended to offset the subsidy or subsidies.  
Subsidy amount attributable to the subsidy POI  
Art. 17.- The subsidy or subsidy programme amount attributable to the subsidy POI shall be the 
total subsidy or subsidy programme amount received by the rec ipient during that period.  
Notwithstanding the previous paragraph, where the total subsidy amounts are allocated over a 
multi-year period, the subsidy POI amount shall be the portion of the total subsidy amount of 
benefits allocated to that period.  
Allocable subsidies  
Art. 18.- Allocable subsidies are those subsidies for which the subsidy amount may be allocated 
over the average useful life of the recipient's operational assets. Such subsidies shall meet one or 
more of the following requirements:  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  (a) Have been provided for the purpose of purchasing fixed assets;  
(b) Be non -recurring;  
(c) Be oriented toward future production; and  
(d) Be transferred forward in the recipient's accounting records.  
Notwithstanding the above, small value grants, representing up to 0.5% of the recipient firm's 
relevant sales during the subsidy POI, shall be attributed in full to the year of receipt ("expensed").  
The investigating authority shall determine the subsidy amount to be attributed to the subsidy POI 
from an allocable subsidy by dividing the total subsidy amount by the number of years of average 
useful life of the recipient's operational assets, using the following formula:  
SD= S i/ni 
Where:  
SD= The amount of the allocable subsidy.  
Si= Total subsidy amount f or assets i. 
ni= Total number of years over which, according to the table selected, the assets i will depreciate.  
Where the number of years between the date of receipt of the subsidy and the subsidy POI is greater 
than the average useful life of the assets , no subsidy amount shall be attributed to the subsidy POI.  
The allocation prescribed in this Article shall be performed by dividing the subsidy amount over the 
number of years in the allocation period and attributing the resulting amount to the subsidy PO I. 
Notwithstanding the provisions of the previous paragraphs, in the case of subsidies provided through 
long-term loans (i.e. with maturity of longer than one year), the allocation period shall be the life of 
the loan, and the methodology to be followed to  calculate the subsidy POI amount shall be defined 
in accordance with the third paragraph of Article 30 of these Regulations.  
Except as otherwise provided in these Regulations, the date on which the subsidy POI amount from 
an allocable subsidy shall be dee med to have been received shall be the anniversary date of the 
original date of receipt of the subsidy.  
Average useful life of assets  
Art. 19.- In order to determine the allocation period for a given foreign producer or exporter, the 
investigating authorit y shall calculate the average useful life of that producer's or exporter's assets 
as the ratio of the total average book value of its physical, depreciable assets to its average annual 
depreciation expense over the most recent five -year period. For the abo ve calculation, accounting 
data shall be preferred to tax depreciation data.  
Where the investigating authority finds, on the basis of relevant evidence, that a subsidy is tied to 
the purchase of a particular asset, the investigating authority may use the average useful life of the 
asset to which the subsidy is tied as the allocation period of that subsidy.  
Sales to which the subsidy POI amount is attributable  
Art. 20.- The sales to which the subsidy POI amount shall be allocated shall be the recipient' s total 
sales during that period, unless the investigating authority finds, on the basis of relevant evidence, 
that the subsidy amount received by a foreign producer or exporter is tied to or benefits a particular 
portion of the recipient's products or sal es. 
Tied subsidies  
Art. 21.- Where the Investigating Authority finds,  on the basis of relevant evidence , that a subsidy 
amount received by a foreign producer or exporter is tied to or benefits a particular portion of  the 
recipient's production or sales, th e investigating authority shall attribute the subsidy amount to the 
value of  the relevant corresponding sales of the recipient during the subsidy POI. In identifying these 
relevant corresponding sales, the investigating authority shall take into account th e following:  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  (a) in the case of subsidies tied to the recipient's overall exports or export efforts, the 
relevant sales for attribution of the subsidy amount shall be the recipient's total export 
sales value during the subsidy POI;  
(b) in the case of subsi dies tied to production or sale of a particular product, the relevant 
sales for attribution of the subsidy amount shall be the recipient's total sales value of 
that product during the subsidy POI;  
(c) in the case of subsidies tied to a particular market, the relevant sales for attribution 
of the subsidy amount shall be the recipient's total sales value to that market during 
the subsidy POI;  
(d) in the case of subsidies tied exclusively to production and/or sale of products, or for 
particular market s, no subsidy amount shall be attributed to those exports, other than 
exports of the investigated product to El Salvador.  
Calculation of the ad valorem  rate of subsidization  
Art. 22.- The investigating authority shall calculate the ad valorem  rate of subsi dization for a foreign 
producer or exporter of the investigated product, from a given subsidy or subsidy programme, by 
dividing the subsidy POI amount determined by the appropriate value of sales and multiplying the 
result by one hundred.  
Calculation of th e total ad valorem  subsidy rate  
Art. 23.- The investigating authority shall calculate the total ad valorem  subsidy rate for a foreign 
producer or exporter of the investigated product by summing the ad valorem subsidy rates calculated 
for that producer or exporter for each of the subsidies or subsidy programmes investigated.  
High -inflation countries  
Art. 24.- In the case of allocable subsidies in high -inflation countries, the investigating authority 
may adjust the ad valorem  subsidy rate taking inflation into account. If such an adjustment is made , 
it shall be performed by converting both the total subsidy amoun t and the value of sales for the POI 
into the same currency at constant values , using the following exchange rates:  
(a) for the total subsidy amount, the exchange rate shall be the official rate on the date 
of receipt of the subsidy;  
(b) for the value of s ales during the subsidy POI, the exchange rate shall be the average 
official exchange rate for that period. In cases where there are substantial variations 
in sales volumes over the subsidy POI, this average rate may be weighted by the sales 
volume in appr opriate sub -periods of the POI.  
Section III  
Calculation methodology and guidelines for certain types of subsidies  
Guidelines for certain types of subsidies  
Art. 25. - The provisions of Section III, Chapter II of these Regulations, refer to the methodologies 
and guidelines to be taken into account for certain types of subsidies, without prejudice to this, other 
types of subsidies may be identified, depending on the corr esponding investigation.  
Grants  
Art. 26. - In the case of a grant, of which no portion of the value is repaid to the government, the 
total subsidy amount shall be the amount of the grant, determined in accordance with the  
provisions of Articles 15 and 16 of  these Regulations. The investigating authority shall consider the 
date of receipt of the subsidy to be the date of receipt of the grant.  
The investigating authority shall determine the amount of a grant that is attributable to the subsidy 
POI in accordanc e with the provisions of Article 18 of these Regulations.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  Calculating subsidy amounts from government loans  
Art. 27. - A government loan shall be deemed to confer a benefit to the extent that there is a 
difference between the amount that the recipient pays in interest and any other charges or costs on 
the government loan, and the amount the recipient would have paid on a comparable commercial 
loan which it did or could have obtained on the market. In this case, the benefit shall be the 
difference between the se two amounts.  
In the case of deferred principal or interest payments, the deferred principal and interest amounts 
shall be considered an interest -free loan.  
If all or part of a loan found to confer a benefit is forgiven or defaulted on, the amount not repaid 
shall be considered a grant, received on the date of default.  
Short -term loans  
Art. 28. - In the case of a government -provided short -term loan, the investigating authority shall 
use as the basis of the comparison referred to in the preceding Article a comparable loan that the 
recipient has received from a private commercial lender at a similar point in time, for a similar 
amount, with a similar repayment period.  
Where the recipient has not agreed a similar commercial loan that can be used as the basis  for 
comparison, the investigating authority may use instead a comparable private loan to a firm in a 
similar financial situation, if possible in the same sector of the economy.  
The date of receipt of the subsidy shall be the date on which the recipient ma kes a payment or, in 
the absence of such a payment, the date on which the payment would have been due on the 
comparator commercial loan.  
Short -term loans shall be all loans with a maturity of less than one year.  
Debt forgiveness  
Art. 29. - When a government  assumes or forgives a firm's debt obligation, the benefit shall be equal 
to the amount of the principal and/or interest that the government has assumed or forgiven. If a 
government receives shares in a firm in return for eliminating or reducing the firm's  debt obligations, 
the investigating authority shall determine the existence of a benefit in accordance with the 
provisions of Article 33 of these Regulations.  
The date of receipt of the subsidy shall be the date on which the debt or interest was assumed o r 
forgiven.  
Long -term loans  
Art. 30. - In the case of a government -provided long -term loan, the investigating authority shall 
use, as the basis of the comparison provided for in Article 27 of these Regulations, a loan of 
comparable amount, maturity, and typ e, that the investigated firm has received from a private 
commercial lender during the year in which the terms of the government loan were established.  
Where the recipient has not agreed a similar commercial loan that can be used as the basis for 
compariso n, the investigating  authority may use instead a comparable private loan to a firm in a 
similar financial situation, if possible in the same sector of the economy.  
In the case of long -term loans, the subsidy benefits shall be deemed to arise on a year -by-year basis 
over the life of the loan, in accordance with the provisions of the fifth paragraph of Article 18 of 
these Regulations. The benefits thus calculated for the subsidy POI shall be attributed to that period.  
The dates of receipt of the subsidy shall  be the dates on which the recipient makes payments, or in 
the absence of such payments, the dates on which payments would have been due on the 
comparable commercial loan.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  Repayable grants and contingent liability loans  
Art. 31. - Repayable grants and conti ngent liability loans (loans that are not payable until the 
occurrence of a specified future event) shall be treated as a series of short -term loans during the 
period before any repayment is made. The methodology used to calculate the amount of the subsidy  
for short -term loans shall be that described in Article 28 of these Regulations. In the event of a 
determination that such a  grant or loan shall not be repaid, the outstanding balance of the grant or 
loan as of that date shall be treated as a grant receiv ed on the date on which the obligation to repay 
was extinguished.  
Loan guarantees  
Art. 32. - A government -facilitated loan guarantee shall be deemed to confer a benefit where there 
is a difference between the amount that the recipient of the guarantee pays in interest and any other 
charges or costs on the guaranteed loan and the amount that the firm would pay on a comparable 
commercial loan absent the government guarantee. In this case, the benefit shall be the difference 
between these two amo unts, adjusted for any differences in fees.  
In the case of a loan guarantee, the subsidy shall be considered to have been received on the date 
on which the recipient makes a loan repayment, or in the absence of such repayment, on the date 
on which payment would have been made on the comparator commercial loan. The benefits from 
loan guarantees attributable to the subsidy POI shall be determined in accordance with the relevant 
provisions of Article 28 or Article 30 of these Regulations, depending on the matu rity of the 
guaranteed loan.  
The calculation principles set forth in this Article also shall apply to credit guarantees.  
Equity infusions  
Art. 33. - Government provision of equity shall be deemed to confer a benefit where the 
government's investment decisio n can be regarded as inconsistent with the usual investment 
practice of private investors in the territory of the country where the equity infusion is made.  
An equity infusion shall be inconsistent with usual investment practice if the price paid by a 
government for newly issued shares is greater than the price paid by private investors for the same, 
or a similar form of, shares, at that time. The amount of the subsidy shall be the difference between 
the price per share paid by the government and the price per share paid by the private investor, 
multiplied by the number of shares purchased by the government.  
In calculating the foregoing, the following formula shall be applied:  
SAK = (PE i-PMi)* ni 
Where:  
SAK = Amount of the equity infusion subsidy.  
PEi = Price paid by the State for equity shares of issue i under investigation.  
PMi = (Market) price actually paid by private investors for equity shares of issue i under investigation.  
ni = Total number of shares actually purchased by the State of issue i under investigation.  
If there is no market price for shares of the firm receiving the equity infusion at the time that the 
government purchases its shares, or if this market price is not representative of the usual investment 
practice, the investigating auth ority shall examine whether the government had, at that time, a 
realistic expectation of a reasonable rate of return on the equity infusion within a reasonable period. 
In performing this analysis, the investigating authority may request and examine any stu dies or 
analyses considered by the government in deciding to provide the equity infusion.  
If the investigating authority determines that the government's decision to invest in the firm 
receiving the equity infusion was inconsistent with usual investment pr actice, the investigating 
authority may determine that the equity infusion constitutes a subsidy in the form of a grant or an 
interest -free loan, taking into account the financial situation of the recipient and any other relevant 
information and circumstan ces. G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  The amount of the subsidy shall be reduced to take into account any dividends or income paid to 
the government during the subsidy POI. Once it has been determined under the above methodology 
that the equity infusion constitutes a subsidy, the amount o f the subsidy shall be calculated on a 
case-by-case basis, in accordance with the applicable provisions of these Regulations.  
The date of receipt of the subsidy shall be the date of receipt of the equity infusion.  
Direct taxes, indirect taxes and import ch arges  
Art. 34. - For the purposes of these Regulations, the following definitions shall apply:  
(a) Direct taxes: taxes on wages, profits, interest, income, fees or royalties and any other 
form of income, as well as real estate taxes.  
(b) Indirect taxes: sales, consumption, turnover, value added, franchise, stamp, transfer, 
inventory and equipment taxes, border taxes and all taxes other than direct taxes and 
import charges.  
(c) Import charges: tariffs, other duties and other fiscal charges not menti oned in this 
Article that are levied on imports.  
Exemption, remission or forgiveness of direct taxes  
Art. 35. - The exemption, remission or forgiveness of direct taxes constitutes a subsidy in the amount 
of the difference between the amount of taxes exempte d, remitted or not collected and the amount 
that the company otherwise would have paid, absent the exemption, remission or forgiveness. The 
date of receipt of the subsidy shall be the date on which the taxes exempted, remitted or forgiven 
would otherwise h ave been due.  
Tax deferrals  
Art. 36. - In the case of a deferred payment of direct taxes, indirect taxes, import duties and charges, 
and similar fiscal charges, the investigating authority shall consider such tax deferral a government 
loan in the amount of the taxes deferred, and shall calculate the amount of any resulting subsidy in 
accordance with Articles 27, 28 and 30 of these Regulations, as appropriate, depending on whether 
the deferral is for less than one year or for one year or more. Tax deferral sh all not constitute a 
subsidy if the government collects an appropriate commercial rate of interest on the deferred 
amount.  
Exemption from indirect taxes or import charges  
Art. 37. - In the case of a full or partial exemption from indirect taxes or import ch arges, the 
investigating authority shall calculate the amount of any resulting subsidy as the difference between 
the amount of indirect taxes or import charges paid by a firm and the amount that would otherwise 
have been paid by the firm, absent the exempt ion. The date of receipt of the subsidy shall be the 
date on which the firm would have had to pay the exempted tax or charge.  
Rebate or remission of indirect taxes or import charges  
Art. 38. - In the case of a full or partial rebate or remission of indirect  taxes or import charges, the 
investigating authority shall determine the amount of any resulting subsidy as the net amount of 
the taxes or charges paid after the rebate or remission, compared with the amount that would 
otherwise have been paid, absent the  rebate or remission. The date of receipt of the subsidy shall 
be the date of receipt of the rebate or remission.  
Provision of goods or services  
Art. 39. - The provision of goods or services by a government shall be determined to confer a benefit 
where the provision is made for less than adequate remuneration. The adequacy of remuneration in 
the country of provision shall be determined in relation to prevailing market conditions for the good 
or service in question in the country of provision, including p rice, quality, availability, marketability, 
transportation and other conditions of purchase or sale.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  When determining the adequacy of remuneration the investigating authority shall first take into 
account the price for the good or service in actual market transactions by private suppliers in the 
country of their provision. If this price cannot be quantified, the authority may calculate the adequacy 
of remuneration on the basis of whether the price paid to the government is sufficient to cover total 
costs, i ncluding selling, general and administrative expenses, to provide the goods or services 
supplied, plus a reasonable amount for profit, or such other reasonable basis as may be determined.  
The amount of the subsidy shall be the difference between the price paid by the firm for the 
government -provided goods or services and the adequate remuneration determined by the 
investigating authority. The date of receipt of the subsidy shall be the date on which the firm pays 
or, in the absence of payment, would have ha d to pay for the government -provided goods or 
services.  
Purchase of goods  
Art. 40. - The purchase of goods by a government shall be deemed to confer a benefit where the 
purchase is made for more than adequate remuneration. The adequacy of remuneration shall  be 
determined in relation to prevailing market conditions for the good in question in the country of its 
purchase, including price, quality, availability, marketability, transportation and other conditions of 
purchase or sale.  
When determining the adequac y of remuneration, the investigating authority shall first take into 
account the price for the good charged by the investigated firm in actual market sales to private 
purchasers in the country of purchase. If this price cannot be determined, the investigat ing authority 
may calculate the adequacy of remuneration by examining whether other firms in that country have 
sold the same good on comparable terms and conditions to private purchasers.  
In cases where no such comparator price is available, the investigat ing authority may determine the 
adequacy of remuneration on the basis of whether the price paid by the government is sufficient to 
cover the investigated firm's total cost of the good, including selling, general and administrative 
expenses, plus a reasonab le amount for profit.  
The amount of the subsidy shall be the difference between the price paid by the government for the 
goods purchased and the adequate remuneration determined by the investigating authority. The 
date of receipt of the subsidy shall be th e date on which the government pays for the goods 
purchased.  
Worker -related subsidies  
Art. 41. - In the case of government assistance to workers, a benefit shall be deemed to exist where 
the assistance relieves the employer firm of an obligation that it oth erwise would incur. The date of 
receipt of the subsidy shall be the date on which the government payment is made that relieves the 
firm of the relevant obligation.  
Prior -stage cumulative indirect taxes  
Art. 42. - For purposes of these Regulations, the term "prior -stage cumulative indirect taxes" shall 
mean multi -staged taxes levied on goods or services used directly or indirectly in making a product, 
where there is no mechanism for subsequent crediting of the tax if the goods or services subject to 
tax at on e stage of production of the product are used in a succeeding stage of production thereof.  
Inputs consumed in the production process  
Art. 43. - For the purposes of these Regulations, the term "inputs consumed in the production 
process" shall mean inputs phy sically incorporated, such as basic electricity and water services, in 
addition to telecommunications, fuels and oil used in the production process, and catalysts which 
are consumed in the course of their use to obtain a product.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  Exemption or remission of indirect taxes, other than cumulative indirect taxes  
Art. 44. - In the case of the exemption or remission of indirect taxes, other than prior -stage 
cumulative indirect taxes, in respect of the production and distribution of an exported product, a 
subsidy sh all be deemed to exist only where it is determined that the amount of the exemption or 
remission exceeds the amount levied with respect to the production and distribution of the like 
product when sold for domestic consumption.  
The date of receipt of the subsidy shall be the date on which the excessive amount was remitted or 
the exempted taxes were otherwise due.  
Exemption or remission of cumulative indirect taxes  
Art. 45. - In the case of the exemption or remission of prior -stage cumulative indirect taxes in 
respect of an exported product, a subsidy shall be deemed to exist only where it is determined that 
the amount of the exemption or remission exceeds the amount of such taxes levied on inputs 
consumed in the production process, as provided for in Article  43 of these Regulations, making 
normal allowance for waste. The provisions of Annex II to the WTO Agreement on Subsidies and 
Countervailing Measures shall be followed in making this determination.  
The date of receipt of the subsidy shall be the date on wh ich the excessive amount was remitted or 
the exempted taxes were otherwise due.  
Remission or drawback of import charges in respect of exported products  
Art. 46. - In the case of the remission or drawback of import charges in respect of an exported 
product, a subsidy shall be deemed to exist only where it is determined that the amount of the 
remission or drawback exceeds the amount of import charges on imported inputs that are consumed 
in the production process, making normal allowance for waste.  
In determini ng the amount of the subsidy in the case of remission or drawback of import charges in 
respect of inputs consumed in the production of an exported product, the investigating authority 
shall take into account the provisions in Article 43 of these Regulation s and Annex II to the WTO 
Agreement on Subsidies and Countervailing Measures.  
The date of receipt of the subsidy shall be the date on which the excessive amount was remitted or 
drawn back.  
The provisions of this Article shall also apply to cases of substitution drawback, where a firm uses a 
quantity of home market inputs equal to, and having the same quality and characteristics as, the 
imported inputs as a substitute for them. In this case, a subsidy shall be deemed to exist where:  
(i) the import and  the corresponding export operations did not both take place within a 
time period of not more than two years; or  
(ii) the amount drawn back exceeds the amount of the import charges levied initially on 
the imported inputs for which drawback is claimed.  
In cases of substitution drawback, the investigating authority shall follow the provisions of Annex III 
to the WTO Agreement on Subsidies and Countervailing Measures.  
Notifications to the World Trade Organization in subsidy investigations  
Art. 47. - Pursuant to  Article 35 of the Special Law on Trade Defence, the investigating authority 
shall promptly notify to the WTO Committee on Subsidies and Countervailing Measures the resolution 
initiating an investigation, as well as all measures, whether preliminary or fin al, adopted with respect 
to countervailing duties.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  CHAPTER III  
Special Substantive and Procedural Rules  
on the Application of Safeguard Measures  
Safeguard measures  
Article 48. - The provisions of this Chapter shall apply to safeguard measures, in accordance  with 
the provisions of Titles II, IV and VII of the Special Law on Trade Defence.  
Like product  
Art. 49. - Pursuant to Article  5(g) of the Special Law on Trade Defence, "like product" shall be 
interpreted to mean a product that is identical, i.e. alike in a ll respects, to the product under 
investigation.  
If the examination of likeness leads to a determination that there is no identical product, another 
product which, although not alike in all respects, has characteristics closely resembling those of the 
product under investigation, shall be considered a like product. In examining likeness, the 
investigating authority may take into account:  
(a) the raw materials and other inputs used in producing the product;  
(b) the production process;  
(c) the physical characteristics and appearance of the product;  
(d) the end use or final destination of the product;  
(e) the substitutability of the product with the product under investigation;  
(f) the tariff classification; and/or  
(g) any other factor deemed rel evant by the investigating authority.  
This list is not exhaustive, and none of these factors, either on their own or together with others, 
will necessarily be sufficient to provide decisive guidance.  
Examination of likeness in safeguard investigations  
Art. 50.- The product under investigation shall be subject to an examination of likeness or 
competition, which shall consist of a comparison between the product under investigation and the 
like or directly competitive product.  
Content of the adjustment or read justment plan  
Art. 51. - Pursuant to Article 5(e) and Article 76 of the Special Law on Trade Defence, any adjustment 
or readjustment plan shall include, as a minimum, an identification of the circumstances to be 
overcome, the current circumstances so that t he changes can be quantified, a planned scenario 
showing the circumstances overcome and a programme with the corresponding timetable for 
carrying out the action to be taken to achieve the necessary conversion. The plan shall also show 
that it is financiall y viable and that the domestic industry has the necessary economic or credit 
resources to implement it. Lastly, the plan shall identify the performance indicators which, in the 
opinion of the industry, are appropriate for measuring the implementation of th e adjustment plan.  
The investigating authority shall examine the adjustment plan and shall consider whether the 
proposal is realistic and sufficient. If it considers this not to be the case, it may give the domestic 
industry an opportunity to modify the pl an, for which a period not exceeding 15  calendar days shall 
be given.  
Factors for determining the existence of a threat of serious injury  
Art. 52. - In order to determine a threat of serious injury caused by increased imports, and pursuant 
to Article 28 of the Special Law on Trade Defence, the following may be considered some of the 
imminent effects of the factors referred to in that Article:  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  (a) The possibility of an increase in imports due, inter alia , to the existence of a supply or 
sales contract, the aw ard of a tender, an irrevocable offer or other similar contract.  
(b) An increase in the export capacity of the country of origin as a result of increased 
utilization of plant capacity for the product investigated or an increase in inventories.  
(c) The like lihood that the exports resulting from the increased potential capacity in the 
exporting country will be exported to the Salvadoran market. For the purposes of this 
analysis, the fall in prices, statistically valid estimations or other circumstances that 
may promote such exports may be taken into account.  
(d) The existence of letters of credit for the payment abroad of imports of the product 
under investigation.  
Notification of interest in participating in a safeguard investigation  
Article 53. - Any party wi th a legitimate interest in a safeguard investigation, as provided for in 
Article 5(d) of the Special Law on Trade Defence, may inform the investigating authority in writing 
of its interest in participating in the investigation, within 20 days following th e publication in the 
Official Journal of the resolution initiating the investigation.  
Notifications to the World Trade Organization in safeguard investigations  
Art. 54. - Pursuant to Article 34 of the Special Law on Trade Defence, the investigating authority 
shall immediately notify the WTO Committee on Safeguards upon:  
(a) initiating an investigatory process relating to serious injury or threat thereof and the 
reasons for it;  
(b) making a finding of serious injury or threat thereof cau sed by increased imports; and  
(c) taking a decision to apply or extend a safeguard measure.  
CHAPTER IV  
Common Procedural Rules on Unfair Trade Practices and Safeguard Measures  
Common procedural rules  
Art. 55. - The provisions of this Chapter shall apply to investigations that seek to verify whether 
applying anti -dumping duties, countervailing duties or safeguard measures is appropriate, in 
accordance with the provisions of Titles V and IX of the Special Law on Trade Defence.  
Submission of informatio n relating to injury factors  
Art. 56. - Accounting and financial information relating to the injury factors listed in Articles 24 and 
27 of the Special Law on Trade Defence, in particular information referring to production, sales, 
inventories, prices, prof its, installed capacity utilization and employment, shall be submitted signed 
by the public accountant or external auditor of the firm.  
In order to assess the injury factors, the information shall be submitted in detail, preferably broken 
down into half -yearly periods.  
Submission of prior written application  
Art. 57. - Applications for the initiation of an investigatory process to verify whether applying anti -
dumping duties, countervailing duties or safeguard measures is appropriate shall be drawn up in 
accordance with the requirements set out in the procedural manuals or guides provided by the 
investigating authority for this purpose.  
Address for notifications  
Art. 58. - In their first written representation, the interested parties shall clearly indicate an a ddress 
within the jurisdiction of the investigating authority and an electronic means via which the authority 
can notify them of the resolutions it issues in the course of the investigation.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  The electronic means indicated by the interested parties for this  purpose shall allow the dispatch 
and receipt of notifications to be recorded. Notifications made by electronic means shall be 
considered made 24 hours after being sent, provided that there is evidence of their receipt.  
Updating of manuals or guides for su bmitting applications  
Art. 59. - The Directorate for the Administration of Trade Agreements may update the procedural 
manuals or guides that firms are required to follow when preparing applications for the initiation of 
an investigation relating to unfair t rade practices or safeguard measures, in accordance with the 
formalities established in Article 91 of the Special Law on Trade Defence.  
CHAPTER V  
National Trade Defence System  
Call for the referral of private -sector candidates to sit on the System Committee  
Art. 60. - The Minister of Economic Affairs shall send a communication to private entities dealing 
with industrial, export, commercial and agricultural matters, in accordance with Article 85 of the 
Special Law on Trade Defence, with a view to them  drawing up shortlists of three candidates for 
System Committee membership.  
Private entities shall have a period of 30 calendar days from when they receive the above -mentioned 
communication to send their shortlists of three candidates to the Minister of Ec onomic Affairs.  
A notice shall be published on the website of the Ministry of Economic Affairs informing the public 
that calls have been made for the referral of private -sector candidates to sit on the System 
Committee.  
Selection of candidates for private -sector shortlists for System Committee membership  
Art. 61. - Private entities, upon receiving the communication from the Minister of Economic Affairs 
requesting shortlists of three candidates for System Committee membership, shall circulate a notice 
among t heir associates inviting them to express their interest; if interested, associates shall send 
their curriculum vitae and any other documents required by the entity relating to participant 
suitability.  
The board of directors of each entity shall establish the procedure for drawing up shortlists of the 
three candidates best suited to represent that entity in the System Committee. As part of this 
procedure, the Board of Directors shall ensure that the selection process is conducted in accordance 
with the principles of transparency and fairness among its associates.  
Each private -sector entity shall publish, through available channels, a notice containing information 
on the candidate selection procedure conducted by that entity.  
The proposed shortlists  sent by private entities shall comprise three candidates and their respective 
alternates, who shall be over 30 years of age and of good repute, and have demonstrated 
professional experience and links with production sector development. In order to demonst rate 
compliance with the above -mentioned requirements, the proposing entity shall submit the following 
for each candidate:  
(a) A copy of their single identity document and a tax identification number;  
(b) A curriculum vitae, including a photograph;  
(c) A police clearance certificate;  
(d) A tax solvency certificate;  
(e) Documents confirming the academic and professional experience described in the 
curriculum vitae.  
The above -mentioned entities shall also attach certification of minute items or any other docu ment 
demonstrating the selection of the proposed candidates.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  Appointment of System Committee members  
Art. 62. - The public entities forming part of the National Trade Defence System shall designate the 
regular member and the alternate who are to represent t he institution in the System Committee 
within 30 calendar days of receiving the communication from the Minister of Economic Affairs 
requesting them to do so.  
Members of the industrial, export, commercial and agricultural sectors forming part of the Nationa l 
Trade Defence System Committee shall be selected by the Minister of Economic Affairs within 
30 calendar days of the Minister receiving the three -person shortlists proposed by the private entities 
related to the above -mentioned sectors. Once this selectio n has been made, the Minister of Economic 
Affairs shall notify the entities of the selection results.  
The appointment of members to represent public and private entities in the System Committee shall 
be formalized during the first meeting of the Committee.  
Representation  
Art. 63. - Regular members who are unable to attend a meeting may send an alternate, provided 
that they notify the Minister of Economic Affairs sufficiently in advance and in writing before the 
meeting in question.  
The alternate shall have the same rights and obligations as the regular member of the System 
Committee.  
Term of membership  
Art. 64. - Natural persons sitting on the System Committee as representatives of the private and 
public sectors shall remain members thereof for the perio d specified in the respective appointment 
agreement.  
Confidentiality  
Art. 65. - System Committee meetings shall not be open to the public unless otherwise decided.  
Where confidential information is presented during a System Committee meeting, the regular 
members and/or alternates shall avoid disclosing such information.  
Meeting sessions  
Art. 66. - The System Committee shall hold regular meetings once every three months and special 
meetings whenever so required.  
Regular meetings shall be convened at least five  days in advance by the Committee Chair, and 
special meetings at least 48 hours in advance, also by the Committee Chair.  
System Committee meetings may be convened electronically, provided that there is a record of the 
convening notice having been received.  
The quorum required for meetings shall be five members.  
Meeting agendas  
Art. 67. - The System Committee Chair shall draw up a provisional agenda for the meeting, which 
shall be sent, together with the convening notice, with a view to the meeting taking place. However, 
if a member has an agenda item for the meeting in question, it shall provide advance notification of 
this item, in writing, after receiving the convening notice.  G/ADP/N/1/SLV/3/Suppl.2 • G/SCM/N/1/SLV/3/Suppl.2 • G/SG/N/1/SLV/3/Suppl.2  
 
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  Minutes of meetings  
Art. 68. - At the end of the meeting, minutes shall be drawn up recording the topics discussed and 
matters agreed upon, which, in turn, shall be  approved by System Committee members.  
The minutes shall include, among other information, the following:  
(a) The agenda and documentation presented to the System Committee;  
(b) The agreements adopted during the meeting;  
(c) The recommendations made by the  System Committee;  
(d) A list of the regular members and alternates participating in the meeting.  
Adoption of agreements  
Art. 69. - Agreements adopted during a meeting shall be valid if approved by the majority of the 
System Committee members present at that meeting, on the basis of one vote per member; in the 
event of a tie, the Committee Chair shall have the casting vote.  
Validity  
Art. 70. - This Decree shall enter into force eight days after its publication in the Official  Journal.  
DONE AT THE OFFICE OF THE PRESIDENT : San Salvador, 14 September 2017.  
 
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