WORLD TRADE  
ORGANIZATION   
G/ADP/N/1/ECU/3 
G/SCM/N/1/ECU/3 
G/SG/N/1/ECU/5 24 May 2011 
 
(11-2589) 
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 
 
ECUADOR 
 
  The following communication, dated 20 May 2011, is being circulated at the request of the Permanent Mission of Ecuador.  
_______________ 
 
  In accordance with the provisions of Ar ticle 18.5 of the Anti-Dumping Agreement, 
Article 32.6 of the Agreement on Subsidies and Countervailing Measures and Article 12.6 of the 
Agreement on Safeguards, I herewith submit the te xt of Ecuador's legislation governing unfair 
practices and safeguards. 
  Attached hereto are the relevant parts of:   - "The Organic Code of Production, Trade and Investment", published in Official 
Journal No. 351 of 29 December 2010 (Annex I);  and 
 
 - "The Regulations to Implement Book IV of the Organic Code of Production, Trade 
and Investment, Regarding Trade Policy, its Supervisory Bodies and Instruments", published in Official Journal No. 435 of 27 April 2011 (Annex II). 
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  ANNEX I 
 
 ORGANIC CODE OF PRODUCTION, TRADE AND INVESTMENT 
Official Journal No. 351 of 29 December 2010 
  
BOOK IV 
 
FOREIGN TRADE, ITS SUPERVISORY BODIES AND INSTRUMENTS 
 
 
TITLE III 
 
Trade Defence Measures 
 
Chapter I 
 
 Article 88.  Trade Defence .  The State shall promote tran sparency and efficiency in 
international markets and shall encourage equal conditions and opportunities.  For these purposes and 
in accordance with the provisions of this Code and of  the relevant international instruments, it shall 
adopt appropriate trade measures to:  
(a) Prevent or remedy any injury or threat of injury to domestic industry arising from 
unfair practices of dumping and subsidization; 
(b) restrict or regulate any imports that in crease significantly and are made under such 
conditions as to cause or threaten serious injury to domestic producers of like or directly competitive products; 
(c) respond to trade, administrative, monetary or financial measures adopted by a 
third country that affect the rights and tr ading interests of the State of Ecuador, 
provided that such measures may be deemed incompatible or unwarranted in the light 
of international agreements, or that they nullify or impair benefits accruing under an 
international trade agreement; 
(d) restrict imports or exports of products on social or economic grounds to local supply, 
domestic price stability or protection for domestic industry and domestic consumers; 
(e) restrict imports of products for balance-of-payments protection;  and 
(f) offset any adverse effects on domestic pr oduction in accordance with the provisions 
of international agreements duly ratified by Ecuador. 
 By means of international trade agreements the application of these measures may be limited 
or other specific trade defence mechanisms estab lished, based on the origin or provenance of the 
goods. 
 
 The trade defence measures that the govern ing body for trade policy may adopt include 
anti-dumping measures, countervailing duties, sa feguard measures and any other mechanism 
recognized by international treaties duly ratified by Ecuador.  G/ADP/N/1/ECU/3 
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 The requirements, procedures and mechanisms for the application and execution of the trade defence measures shall be governed by the provisions of the Regulations to this Code, including the 
retroactive application of measures determined upo n completion of the formal investigation process 
set forth in the Regulations;  the type of products  covered by the measures and the exceptions shall 
likewise be determined.   Article 89.  Duties .  Anti-dumping and countervailing duties and those arising from the 
application of safeguard measures shall be collected  by the Customs Administration together with the 
applicable foreign trade charges;  however, as trade levies they may not be treated as fiscal or tax 
charges.  Accordingly, such measures shall not be bound by the general principles of tax law. 
  Anti-dumping and countervailing duties shall remain  in force as long as and insofar as they 
are necessary to offset th e injury to the domestic industry.  Nevertheless, such duties shall be 
terminated within five years of their entry into fo rce, in accordance with the terms laid down in the 
Regulations to this Code.   Safeguard measures shall be applied for up to four years and may be extended for a further 
period of up to four years where such extension is  warranted, due regard bei ng paid to implementation 
of the domestic industry's adjustment programme. 
  Economic levies applied as a result of these pr ocesses may be lower than the margin of 
dumping or the amount of the established subsidy, provided that they suffice to discourage the importation of products under unfair international trade practices. 
 
 Where an investigation determines a need for re troactive payment of such levies, the Customs 
Authority shall decide on the procedure for the re troactive collection of the surcharges set in such 
cases, in accordance with the term s laid down in the Regulations. 
  Article 90.  Refunds .  The amounts collected under provisional measures for anti-dumping 
duties, countervailing duties or provisional safeguard s shall be refunded if, on completion of the 
investigation, there is no determination that the in crease in imports has caused or threatened serious 
injury to a domestic industry.   Article 91.  Review .  Definitive anti-dumping duties, safeguards or countervailing duties may 
be reviewed and amended periodically at the request of  a party or ex officio, at any time, further to a 
report of the Investigating Authority, whether or not  the duties in question are the subject of national 
or international administrative or judicial dispute proceedings.   In any case, the resolutions announcing the initiati on and the conclusion of the review shall be 
notified to known interested parties.  The interest ed parties shall be entitled to participate in the 
review process. 
 
CHAPTER II 
 
 Article 92.  Functions .  For the purpose of defending trade against trade measures applied by 
governments of third countries, the governing body for trade policy shall be responsible for: 
 
(a) Deciding on or, as appropriate, recommendi ng such trade policy measures as are 
necessary to ensure observance of the right s of the State of Ecuador in accordance 
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  (b) without prejudice to the authority of the Attorney-General of the State, deciding 
whether a foreign trade dispute is to be heard by a panel, court of arbitration, 
international court or any a ppellate body established in acco rdance with international 
treaties or agreements; 
(c) adopting appropriate measures, compatible w ith international treaties and agreements, 
when a third country initiates internal or international proceedings regarding trade, 
financial, foreign exchange or administ rative matters, the outcome of which may 
affect the production, exports or trading interests of Ecuador; 
(d) adopting such measures as are necessary to  ensure implementation of the decisions 
taken by trade dispute settlement bodies est ablished in accordance with this Code and 
relevant international agreements;  and 
(e) the other functions assigned by this Code.  G/ADP/N/1/ECU/3 
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  ANNEX II 
 
REGULATIONS TO IMPLEMENT BOOK IV OF THE ORGANIC CODE OF 
PRODUCTION, TRADE AND INVESTMENT REGARDING TRADE POLICY, ITS 
SUPERVISORY BODIES AND INSTRUMENTS 
Official Journal No. 435 of 27 April 2011. 
  
TITLE III 
 
Trade Defence Measures 
 
 
Chapter I 
 
Anti-Dumping Measures, Countervailing Duties and Safeguards 
 
 Article 52.  Authority to approve and adopt trade defence measures .  The Committee on 
Foreign Trade is the body having authority to approve and adopt, after taking cognizance of the 
relevant report submitted by the Investigating Author ity in the cases set out in Article 88 of the Code 
of Production, Trade and Investment, trade de fence measures that pertain to anti-dumping, 
countervailing duties, safeguards or other meas ures recognized by international treaties and 
agreements applying in Ecuador.  
 Article 53.  Investigating authority .  The administrative unit established in the Ministry of 
Foreign Affairs, Trade and Integration, shall be th e Investigating Authority for trade defence for the 
purposes of the provisions of Article 75 of the Orga nic Code of Production, Trade and Investment and 
these Regulations.   The Ministry of Foreign Affairs, Trade and In tegration shall include in its yearly operational 
budget the resources needed for the Investigating Author ity to perform its duties in full, including the 
necessary financial resources for hiring st aff and for other operational activities. 
  The Investigating Authority shall bring the re ports on trade defence measures to the attention 
of COMEX, as provided in the Code and these Re gulations.  In drawing up such reports, the 
Investigating Authority shall take into account the analys is of injury or threat of injury to a domestic 
industry supplied by the relevant ministries and ot her public institutions as part of their duties. 
  Article 54.  International Obligations of the State .  When investigations are to be held in 
order to determine injury or threat thereof a nd the application of anti-dumping duties, safeguard 
measures or countervailing duties, the procedures to be applied shall be subject to the relevant 
provisions of the international tr eaties and agreements in force, whether bilateral, subregional, 
regional or multilateral, without prejudice to the provisions laid down in these Regulations and in 
such resolutions as the Committee on Fore ign Trade may issue for the purpose. 
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  Section I 
 
Anti-Dumping Measures 
 
Principles 
 
 Article 55.  Application of an anti-dumping duty .  An anti-dumping duty may be applied to 
any dumped product whose importation into Ecuador causes or threatens injury to a domestic 
industry. 
  Article 56.  Determination of dumping .  A product is to be considered as being dumped if 
its export price is less than the normal value of th e same or like product when sold in the domestic 
market of the country of origin or of export, in the ordinary course of trade, compared at the same 
level of trade. 
  The ordinary course of trade means trade reflec ting market conditions in the country of origin 
and carried out habitually or within a representa tive period between unrelated independent buyers and 
sellers, concerning the same or a like dumped product.  
 Article 57.  Country of origin .  The exporting country shall normally be the country of 
origin.  However, it may be an intermediate c ountry except where, for example, the products are 
merely transhipped through that country, or they are not produced in that country, or there is no comparable price for them in that country.  
 Article 58.  Like product .  For the purpose of these Regulations, "like product" shall mean a 
product which is identical, that is to say, alike in al l respects, to the product under consideration, or in 
the absence of such a product, another product wh ich although not alike in all respects, has 
characteristics closely resembling those of the product under consideration.  
Determination of the margin of dumping, the export price and the normal value 
 
 Article 59.  Determination of the normal value .  The normal value of an imported product 
shall mean the price actually paid or payable for a like product when sold for consumption or use in 
the domestic market of the country of origin or of export in the ordinary course of trade.  
 Prices between associated parties or parti es bound by a compensatory agreement with each 
other may be considered to be in the ordinary co urse of trade and used to establish normal value only 
if it is demonstrated that such prices are unaffected by the relationship and are therefore comparable to those in trade between independent parties.   In order to determine whether two parties ar e associated, account shall be taken of the 
definition of related parties set forth in the Or ganic Law on the Internal Taxation Regime and its 
Regulations.   Sales of the like product destined for consum ption in the domestic market of the exporting 
country shall be used, in the first instance, to determine normal value if such sales constitute 5 per 
cent or more of the sales in Ecuador of the product under consideration.  However, a lower ratio shall 
be acceptable where the evidence demonstrates that domestic sales at such lower ratio are nonetheless 
of sufficient magnitude to provide for a proper comparison.   G/ADP/N/1/ECU/3 
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   Article 60.  Determination of normal value in special cases .  When there are no sales of the 
like product in the ordinary course of trade in the do mestic market of the country of origin or export 
or when, because of the particular market situati on, such sales do not permit a proper determination of 
the normal value, such value shall be calculated using the prices of exports to an appropriate 
third country in the ordinary course of trade, provided that these prices are representative.  It may also 
be calculated on the basis of the cost of production in the country of origin plus a reasonable amount 
for administrative, selling and general costs and for profits.  
 Article 61.  Normal value in the case of third countries .  Where products are not imported 
from the country of origin but from a third country, the price at which the products are sold from the 
country of export shall normally be compared with  the comparable price in the third country. 
  However, comparison may be made with the price in the country of origin if, for example, the 
products are merely transhipped through the country of export, or such products are not produced in 
the country of export, or there is no comparable price for them in the country of export.   Costs shall normally be calculated on the basis of records kept by the exporter or producer 
under investigation, provided that such record s are in accordance with the generally accepted 
accounting principles of the exporting country and r easonably reflect the costs associated with the 
production and sale of the product under consideration.  Authoriti es shall consider all available 
evidence on the proper allocation of costs, including that which is made available by the exporter or 
producer, in particular in relation to establishi ng appropriate amortization and depreciation periods 
and allowances for capital expenditure  and other development costs. 
 
 Article 62.  Determination of the export price .  The export price shall be the price actually 
paid or payable for the product when sold for ex port from the exporting country to Ecuador in the 
ordinary course of trade.   When there is no export price or where the I nvestigating Authority deems the export price to 
be unreliable because of an association or comp ensatory arrangement between the exporter and 
importer or a third party, the export price may be constructed on the basis of the price at which the 
imported products are first resold to an independent buyer, or if the products are not resold to an 
independent buyer or are not resold in the same St ate in which they were imported, the price may be 
calculated on a reasonable basis determin ed by the Investigating Authority. 
 
 Article 63.  Conditions for making comparisons and adjustments .  A fair comparison shall 
be made between the export price and the nor mal value, at the same level of trade. 
  Where the normal value and the export pri ce as established are not on such a comparable 
basis, due allowance in the form of adjustments shall be made in each case, on its merits, for 
differences in factors which affect prices and pri ce comparability.  The parameters for comparison 
shall be based on the provisions made for such cases in international instruments and in those 
established by COMEX for the purpose.   Article 64.  Determination of the margin of dumping .  The margin of dumping shall be 
determined by the difference between the normal va lue and the export price.  The margin shall be 
calculated per unit of the product importe d into Ecuador at the dumped price. 
  Where the product under investigation consists of goods which are not basically identical with 
each other, the margin of dumping shall be estimated according to the type of good, in such a way that 
the normal value and the export price involved in each calculation correspond to comparable goods;  G/ADP/N/1/ECU/3 
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  in this case, the margin for the product under inv estigation shall be determined as the weighted 
average of all the individual margins which have b een estimated.  The weighting shall be calculated 
according to the proportion of each type of good re lative to the total volume of the product exported 
during the period of investigation. 
  Article 65.  Determination of injury .  For the purposes of these Regulations, "injury" shall 
mean a significant overall impairment in the position of a domestic industry.  
 The determination of injury shall be based on sufficient and positive evidence and involve an 
objective examination of the volume of the dumped imports, their impact on prices of the like product in the domestic market and their effects on the domes tic industry.  With regard to the volume of the 
dumped imports, consideration shall be given to wh ether there has been a si gnificant increase in the 
dumped imports, either in absolute terms or relative to domestic production or consumption. 
 
 Article 66.  Imposition of measures for countries with no regulations on dumping .  If the 
investigation relates to products originating in or  consigned from countries in respect of which there 
are no applicable international obligations, Ecuador may impose anti-dumping or countervailing 
duties merely on a finding of dumping.  
 Article 67.  Determination of a threat of injury .  For the purposes of these Regulations, 
"threat of injury" shall mean injury that is clearly imminent, in accordance with Article 78. 
  A determination of a threat of material injury  to a domestic industry shall be based on facts 
and not mere allegation, conjecture or remote possi bility.  The change in circumstances which would 
create a situation in which the dumping would cause injury must be clearly foreseen and imminent.  In 
making a determination regarding a threat of mate rial injury, the authorities shall consider the 
parameters established by COMEX for the purpose.   Article 68.  Causal link .  In order to determine whether there is a causal link between the 
dumped imports and the injury to the domestic i ndustry, the Investigating Authority shall also 
examine known factors other than dumped imports which at the same time are injuring or could injure 
the domestic industry.  Factors that may be relevant in this respect include the volume and prices of imports not sold at dumping prices, contraction in demand or changes in the patterns of consumption, restrictive trade practices by and competition betw een domestic and foreign producers, developments 
in technology, and the export performance a nd productivity of the domestic industry. 
 
 Article 69.  Initiation of proceedings .  Proceedings for a dumping investigation shall be 
initiated ex officio or on application by an interested  party on behalf of the domestic industry.  The 
requirements and other procedural aspects of the i nvestigation shall be established in a resolution 
issued by COMEX.  
 The Investigating Authority shall examine th e accuracy and releva nce of the evidence 
provided in the complaint, in order to determine whether there is sufficient evidence for the initiation 
of an investigation.   Article 70.  Consultations .  Once the application is accepted, in the course of the 
investigation into dumping practices the Investiga ting Authority shall hold consultations with the 
interested parties, namely, the government authoriti es and the exporters of the exporting country, the 
importers and domestic producers of the product in  question, and domestic industrial users and 
domestic consumers, in order to find a mutually agreed solution.  
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   If, in the process of the consultations, a mu tually agreed solution is reached between the 
parties, the initiation of an investigation shall be d eclared inappropriate or the investigation shall be 
suspended.  If, after one month from the commen cement of the consultations no mutually agreed 
solution has been reached, the inv estigation shall be continued. 
  Notwithstanding the provisions of this Artic le, the Investigating Authority may arrange 
consultations throughout the period of the investig ation, but this shall not suspend or prevent 
continuation of the investigation. 
 
 Article 71.   Publication and notification .  Once the application has been accepted, before 
initiating the investigation the Investigating Author ity shall notify the government of the exporting 
country.  The Investigating Authority shall likewi se publish in the Official Journal the resolution 
initiating the dumping investigation, expressly indica ting the dates of initiation and completion of the 
investigation, the name of the exporting country or  countries and the product concerned, the basis of 
the dumping allegation made in the application, a summary of the factors on which the injury 
allegation is based, an address for the interested pa rties to contact and the time period in which the 
interested parties may submit their views.  The resolution shall be notified to the Committee on 
Anti-Dumping Practices of the World Trade Organization where the country concerned is a Member of the latter and to the interested parties. 
 
 Such resolutions shall be published in a newspa per with a large circulation in Ecuador, for the 
information of all concerned.   Article 72.  Determination and imposition of provisional measures .  The Investigating 
Authority shall prepare a technical report determining, as appropriate, the level of any provisional 
anti-dumping measures and shall submit it for exam ination and a resolution by COMEX, which shall 
hold a special meeting for the purpose, as necessary.   Provisional measures shall not be applied duri ng the 60 days followi ng the initiation of the 
investigation. 
 
 Provisional measures may be applied if:  
(a) An investigation has been initiated in accordance with these Regulations, public 
notice has been given to that effect and the interested parties have been given 
adequate opportunities to submit information and make comments; 
(b) a preliminary affirmative determination h as been made of dumping and consequent 
injury to a domestic injury;  and 
(c) the competent authority deems such meas ures necessary to prevent injury being 
caused during the investigation. 
Article 73.  Application of provisional duties .  The provisional anti-dumping duties shall be applied 
through the same resolution as that adopting the prel iminary determination, which may opt for any of 
the following decisions:  
(a) To continue the investigation, without the application of provisional duties; 
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  (c) to terminate the investigation. 
 The duties shall be paid on imports of the products  subject to investigation, irrespective of the 
importer. 
 
 The payment of provisional duties may be replaced by a bond or security posted in the form and subject to the conditions laid down in the customs legislation.   Article 74.  Duration of the application of provisional measures .  The provisional 
measures shall be applied for a period of up to six months. 
  When a decision is taken to adopt a definitive anti-dumping measure, the period of application of any provisional measure shall be count ed as part of the total period of duration of the 
measure. 
 
 The resolution determining the provisional m easure shall be notified by the Committee on 
Foreign Trade to the National Customs Service of  Ecuador for informati on and implementation. 
  Duties shall not be imposed if the Investiga ting Authority determines that the volume of the 
dumped imports is negligible, or  if the margin of dumping is de minimis , or if the injury caused by the 
imports in question is negligible. 
  Article 75.  Negligible imports and " de minimis " conditions .  For the purposes established 
in the these Regulations, the following cr iteria shall be taken into account: 
 
(a) In the case of dumped imports, the value sha ll be regarded as negligible if:  the 
volume of dumped imports from a particular country accounts for less than 3 per cent of total imports of that product; 
(b) the volume of dumped imports from countries which individually account for less 
than 3 per cent of the imports of the like product and which collectively represent less 
than 7 per cent of those imports; 
(c) a margin of dumping of less than 2 per cent,  expressed as a percentage of the export 
price, shall be regarded as de minimis . 
 Article 76.  Termination of the investigation .  Once the period for completing all relevant 
aspects of the proceedings has expired and before th e investigation is concluded, the Investigating 
Authority, on the basis of the ev idence and information in the file, shall draw up the conclusions of 
the investigation and submit them to COMEX for a resolution. 
  Article 77.  Implementation of the COMEX resolution .  The decision adopted by COMEX 
shall be notified to the National Customs Service of Ecuador for informa tion and implementation. 
  The resolution shall set out as a minimum the following information: 
 
(a) The factual and legal basis of the decision and the proven causal link; 
(b) the names of the suppliers, or when this  is impractical, the supplying countries 
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  (c) a description of the product concerned by the measure; 
(d) the margins of dumping established and a full explanation of the reasons for using the 
methodology applied in determining and co mparing the export price and the normal 
value; 
(e) considerations relevant to th e injury determination;  and 
(f) the duration of the provisional measure. 
 When a decision is made to adopt a defin itive measure, the period of application of the 
provisional measure shall be counted as part of the total duration of the measure. 
 
 The resolution shall be published in the Official  Journal and notified to the interested parties 
within five working days of the date of publication.   Where a resolution imposes definitive duties, they shall be set in monetary units or 
ad valorem  percentages, or a combination of the two. 
  When the decision to impose definitive measure s is based on the existence of a threat of 
injury or material retardation (the injury not yet having occurred), definitive anti-dumping measures 
may be established only from the date of the determ ination of the threat of injury or material 
retardation in the establishment of a domestic industry, and the pr ovisional duties shall be refunded 
and the corresponding securities released. 
  Article 78.  Review of duties .  One year after the imposition of definitive duties, the 
Investigating Authority, ex officio or upon applicatio n by an interested party, reopen the investigation 
in order to review the duties, if it considers that the conditions which led to their being imposed have 
changed. 
  The resolution reopening the investigation shall be  equivalent to that which initiated it.  The 
investigation shall be concluded within five months at most of  the date of the resolution. 
  Pending termination of the investigation, the anti-dumping duties imposed shall be applied in 
full. 
  Article 79.  Excess amounts and refunds .  Any amounts found to be in excess of the 
anti-dumping duties established shall be refunded in fu ll to the importer, or the security shall be 
refunded or collected only in part, where the marg in of the definitive anti-dumping duties is found to 
have been less than the amount of the provisional duties applied. 
  The refunds shall be made by the customs authority in accordance with the procedures 
established for the purpose.   Article 80.  Anti-dumping duties and importation .  The application of anti-dumping duties 
shall not prevent the importation of the goods concerned into Ecuador. 
  Article 81.  Anti-circumvention measures .  Parts or components intended for the assembly 
or finishing in Ecuador of a like product to th at on which definitive duties are imposed, may be 
subjected to payment of provisional or definitive duti es if these operations are shown to be a way of 
circumventing the duties imposed on the product. G/ADP/N/1/ECU/3 
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  Section II 
 
Safeguard Measures, Investigation and Conditions of Application 
 
 Article 82.  Adoption and application of safeguard measures .  COMEX may, ex officio or 
on application by an interested party, apply a provi sional or definitive safeguard measure to a product 
or group of products if, as a result of an investiga tion, it has determined that the product or group of 
products is being imported into the national territory  in such increased quantities, absolute or relative 
to domestic production, and under such conditions as to cause or threaten serious injury to the 
domestic industry that produces like or directly competitive goods.   The safeguard measures shall be applied to the imported product irrespective of its source. 
 
 Article 83.  Application requirements .  The requirements and procedures for applying for 
the imposition of safeguard measures shall be set as provided in the re levant international rules and in 
resolutions issued by COMEX.   Article 84.  Acceptance of the applicatio n and initiation of the investigation .  Immediately 
after an investigation has been initiated, the Inv estigating Authority shall notify the governments of 
the countries whose exports could be affected in th e event of a safeguard measure being applied, so 
that they may submit evidence and state their opinions.   Notice that the initiation of an investigation is  warranted shall be given by the Committee on 
Foreign Trade in a resolution setting out the factual and legal grounds for the decision. 
 
 Nevertheless, the Investigating Authority may apply provisional safeguard measures, in 
accordance with the provisions of these Regulati ons and of resolutions issued by COMEX. 
  Article 85.  Information .  The Investigating Authority may request the data and information 
it deems relevant for the fulfilment of its task di rectly from the interested parties, the National 
Customs Service of Ecuador and other public or private sector companies and bodies, which must 
provide the information concerned within the prescribed time-limits.   When the information requested by the Investigating Authority is not provided within the time-limits laid down in these Regulations, or when the investigation is seriously impeded, findings 
may be made on the basis of available data.  If the Investigating Authority finds that an interested 
party has supplied it with false or misleading inform ation, it shall disregard such information and may 
use the data available.   Information received may be used only for the purpose for which it was requested. 
 
 Article 86.  Application of safeguard measures .  Provisional and definitive safeguard 
measures shall be applied only to the extent and for such period of time as may be necessary to 
prevent threat of injury or to remedy serious injury and facilitate adjustment.   Safeguard measures shall consist preferably of an ad valorem  or a specific tariff or a 
combination of the two;  only where measures of this nature are inappropriate shall quantitative 
restrictions be applied.   Article 87.  Quantitative restrictions .  If the safeguard measure consists of a quantitative 
restriction in the form of an import quota or ceiling, such quota or ceiling shall on no account be  G/ADP/N/1/ECU/3 
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  lower than the average level of imports of the prod uct entered in the three calendar years immediately 
preceding the year in which the investigation was init iated, unless clear cause is shown of the need to 
set a different level in order to remedy or prevent serious injury or threat thereof, as the case may be. 
 
 Article 88.  Provisional measures .  During the investigation and in critical circumstances 
where delay would cause serious injury, a provisiona l safeguard measure may be applied.  In such 
cases, the Investigating Authority shall prepare a pr eliminary technical report containing all relevant 
factors of an objective and quantif iable nature allowing an assessment of the relevance of such a 
measure and its potential impact on the domestic market. 
  The preliminary report shall be founded on clear proof that the increase in imports has caused 
or is threatening to cause serious injury to th e domestic industry and shall be submitted with the 
corresponding recommendation to COMEX for approval. 
 
 Article 89.  Amount of the provisional measure .  The amount of the provisional safeguard 
measure shall be paid or guaranteed for payment by the importer, by cash deposit or security, through 
the National Customs Service of Ecuador.   When the amount of a definitive safeguard me asure is higher than that of a provisional 
safeguard measure that has been paid or guarant eed, the excess shall not be payable.  Conversely, 
provisional duties collected in an amount higher than that fixed for a definitive measure shall be refunded.  For this purpose the National Customs Se rvice of Ecuador shall use the simplified refund 
system.  
 In the event that no definitive safeguard measu re is established, reimbursement of the full 
amount paid shall be ordered promptly, or the secu rity put up for the amount of the provisional duties 
shall be returned to the importers.   Article 90.  Definitive safeguards .  To reach a determination on the imposition of definitive 
safeguard measures, the Investigating Authority sh all submit to COMEX the requisite final technical 
report on the serious injury caused or threatened  by the increased imports, so that COMEX may 
approve the application of safeguard measures and their amount.   Article 91.  Consultations .  As soon as a provisional measur e is adopted and before imposing 
or extending a definitive safeguard measure, the Investigating Authority shall provide adequate 
opportunity for consultations to be he ld between the interested parties. 
  Article 92.  Publications .  If the initiation of an investiga tion is approved, the Investigating 
Authority shall publish in the Official Journal the resolution to initiate the investigation issued by 
COMEX.  The same procedure shall be followed when the Investigating Authority decides on 
provisional and definitive measures.  The resolutions  shall also be published in a newspaper with a 
broad circulation in Ecuador, for the in formation of all interested parties. 
  Unless a decision has been made to initiate an investigation, the authorities shall avoid 
publicizing the application for in itiation of an investigation. 
 
 Article 93.  Definitive safeguards .  The period of application of definitive safeguard 
measures shall not exceed four years, unless the measures are extended.  G/ADP/N/1/ECU/3 
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   The total duration of a safeguard measure, including the period of application of any 
provisional measure, the initial period of applica tion and any extension thereof, shall not exceed 
eight years. 
 
 Article 94.  Revocation .  The Investigating Authority shall request information on a regular 
basis from the company or sector protected by the safeguard measure, concerning the evolution of production and sales and whether they have begun to  recover, in order to determine whether the 
measure should be revoked. 
 
 Article 95.  Extension .  A safeguard measure may be extende d ex officio or at the request of 
a party no less than two months before expiry of th e period prescribed for the initial measure.  In such 
event the procedure provided for the adoption of  the original measure shall be followed. 
 
Article 96.  Approval .  A safeguard measure may be exte nded provided that the Investigating 
Authority has determined, in accord ance with the procedures established  in these Regulations, that the 
safeguard measure continues to be necessary to prev ent or remedy serious injury and that there is 
evidence that the industry is undergoing a process of adjustment.   However, a new safeguard measure may not be applied to the same product until two years 
have elapsed since the end of the initia l measure, including any extension. 
  Article 97 .  Notwithstanding the provisions of the preceding Article, safeguard measures of a 
duration not exceeding 180 days may be applied again to imports of the same product in cases where:  
 At least one year has elapsed since the da te of introduction of the safeguard measure 
on the import of the product concerned;  and 
   such a measure has not been applied to  the same product more than twice in the 
five-year period immediately preceding the date of introduction of the safeguard 
measure. 
 
 Article 98.  Review of measures .  The Investigating Authority, ex officio or upon application 
by an interested party, may reopen  the investigation in order to re view the definitive measures, if it 
considers that the conditions which led to their bei ng imposed have changed.  In such event it shall 
follow the procedures laid down in regulations issued for the purpose by COMEX. 
 
 Article 99.  Information .  All public sector entities shall supply, in good time, any 
information or documentation requested by the I nvestigating Authority for the purpose of acquiring 
data needed to conduct an unfair pr actices or safeguard investigation. 
 
Agricultural Products 
 
 Article 100.  Special safeguards .  In the case of agricultural products designated for the use 
of special safeguards in the schedule of bindings  under the WTO, account shall be taken of the 
relevant provisions of the WTO Agreement on Agri culture and any other binding decisions the WTO 
may adopt in this connection, subject to the appli cation of the provisions on safeguards laid down in 
these Regulations and in any resolutions issued by COMEX on the matter. 
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   Article 101.  Special measures or specific safeguards in international treaties and 
agreements. 
  Where bilateral, multilateral, regional or subreg ional trade agreements to which Ecuador is a 
party provide for special measures or specific safeguards relating to ag ricultural products, where 
appropriate, the provisions of such international trade instruments shall apply, subject to the 
application of the provisions on safe guards laid down in these Regulations. 
 
 If, for the application of such measures, a speci al report is required of some public institution 
and the latter fails to produce it within the pe riod prescribed, the Board of COMEX may ask the 
Ministry in charge of the institution to set appropria te penalties to apply to the official or officials 
responsible for such failure.  
Section lll 
 
Subsidies and Countervailing Duties 
 
 Article 102.  Application of countervailing duties .  The Committee on Foreign Trade may 
apply countervailing duties to offset any subsidy applied by a third country that is causing injury to a 
domestic industry, when the subsidy is specific to an  enterprise or industry or a group of enterprises or 
industries and, in addition, is granted directly or  indirectly for the manufacture, production or export 
of any product, in accordance with the provisions of  applicable international and community treaties 
and rules and the provisions of these Regulations.  
 Countervailing duties shall not exceed the estimated  amount of the subsidy granted directly or 
indirectly for the manufacture, production or export of  the product in question in the country of origin 
or export, including any special subsidy for the transportation of a particular product.   Article 103.  Subsidies .  For the purposes of these Regulations, "subsidy" shall mean: 
 
 A financial contribution that a foreign govern ment or any public or semi-public body, its 
entities, or any regional public or semi-public body comprising various countries, grants, either directly or indirectly, to an enterprise or industry or group of enterprises or industries, thereby conferring an economic benefit or an incentive, having effects on the costs of production, sales, exportation or logistics;  and 
 
 Any form of income or price support that confers an economic benefit.   The parameters for the existence of a financial contribution shall be set in regulations issued 
by COMEX for the purpose. 
 
 Article 104.  Calculation of the amount .  The amount of the countervailable subsidies shall 
be calculated in terms of the benefit obtained by th e recipient during the period of subsidization under 
investigation.  Normally this pe riod shall be the most recent accounting year of the beneficiary, but 
may also be any other period of at least six months prior to the initiation of the investigation for which 
reliable financial and other relevant  data are available.  The deducti ons that may be made from the 
amount of the total subsidy and the parameters for determining the benefit obt ained shall be fixed in 
regulations issued by COMEX for the purpose.  G/ADP/N/1/ECU/3 
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   Article 105.  Evidence of injury .  If the investigation relates to products originating in or 
consigned from countries in respect of which th ere are no applicable international obligations, 
Ecuador may impose countervailing duties on a mere finding of subsidization. 
 
 Article 106.  Determination of a threat of injury .  A determination of threat of material 
injury to a domestic industry shall be based on f acts and not mere allegation, conjecture or remote 
possibility.  The change in circumstances which wo uld create a situation in which the subsidy would 
cause injury must be clearly foreseen and imminent.  In making a determination regarding a threat of 
material injury, the authorities shall consider such factors as: 
 
(a) The nature of the subsidy and its probable effects on trade; 
(b) a significant rate of increase of subsidized imports, indicative of the likelihood of 
substantially increased importation; 
(c) sufficient freely disposable, or an imminent  substantial increase in, installed capacity 
of the exporter, that indicates the likeli hood of substantially increased subsidized 
exports to Ecuador, taking into considerati on the availability of other export markets 
able to absorb the po ssible increase in exports; 
(d) imports entering at prices that will have a significant depressing or suppressing effect 
on domestic prices, and that will probably increase the demand for further imports; 
(e) inventories of the product under investigation. 
 None of these factors will necessarily give d ecisive guidance on its own, but considered all 
together they must lead to the conclusion that further subsidized exports are imminent. 
  Article 107.  Period of analysis of the injury or threat thereof .  The analysis of the injury 
or threat of injury shall comprise a period covering imports of the like product in the last 12 months 
for which information is available.   Article 108.  Causal link .  In order to determine whether there is a causal link between the 
subsidized imports and the injury to the domestic industry, the Investigating Authority shall also 
examine known factors other than the imports, which at  the same time are inju ring or could injure the 
domestic industry.  Factors which may be considered  in this respect include the volume and prices of 
unsubsidized imports, contraction in  demand or changes in the patterns of consumption, restrictive 
trade practices of and competition between domes tic and foreign producer s, developments in 
technology, and the export performance and productivity of the domestic industry. 
 
 Article 109.  Initiation of investigation proceedings .  The proceedings for an investigation 
regarding countervailing duties shall be initiated ex offi cio or on application by an interested party, in 
accordance with the procedure laid down in r esolutions issued by COMEX for the purpose. 
  Article 110.  Publication and notification .  Once the application has been accepted, before 
initiating the investigation the Investigating Author ity shall notify the government of the exporting 
country concerned.  If the initiation of an investiga tion is in order, the Investigating Authority shall 
publish the resolution opening the investigation in th e Official Journal, expressly indicating the dates 
of the initiation and completion of the proceedings, th e name of the exporting country or countries and 
the product concerned, the grounds for claiming c ountervailing duty stated in the application, a 
summary of the factors on which the injury allegation is based, an address for the interested parties to  G/ADP/N/1/ECU/3 
 G/SCM/N/1/ECU/3 
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  contact and the time-period in which the interested  parties may submit their views.  The resolution 
shall be notified to the Committee on Anti-Dumpi ng Practices and the Committee on Subsidies and 
Countervailing Measures of the World Trade Organiza tion when the country concerned is a Member 
of that Organization, and to the interested parties. 
  Such resolutions shall also be published in a newspaper with a large circulation in Ecuador. 
  Article 111.  Provisional measures .  The Investigating Authority shall prepare a technical 
report determining whether provisional countervailing measures are warranted and shall submit it for 
examination and a resolution by the Committee on Fore ign Trade, which, if appropriate, shall hold a 
special meeting for the purpose.   Provisional measures shall not be applied duri ng the 60 days followi ng the initiation of the 
investigation. 
  The provisional countervailing duties shall be applied through the same resolution as that adopting the preliminary determination.   The duties shall be paid on imports of the pr oducts under investigation irrespective of the 
importer. 
  The payment of provisional duties may be replaced by a bond or security posted in the form and subject to the conditions laid down in the customs legislation.  
 When a decision is made to adopt a de finitive countervailing measure, the period of 
application of any provisional measu re shall be counted as part of the total duration of the measure. 
  The resolution determining the provisional m easure shall be notified by the Committee on 
Foreign Trade to the National Customs Service of  Ecuador for informati on and implementation. 
 
 Duties shall not be imposed if the Investig ating Authority determines that the volume of 
subsidized imports is negligible, or if  the overall level of subsidization is de minimis , or if the injury 
caused by the imports in question is negligible.  The parameters for determining whether the injury is 
negligible shall be set in resolutio ns issued by COMEX for the purpose. 
 
 Article 112.  Evidence and information requ ested or provided during the investigation .  
During the period set for conducting the investigation, the Investigating Authority may request and take such evidence as it considers pertinent.   The Investigating Authority may request any ki nd of information, including technical advice, 
from the various departments of government, which sh all respond by the dates set in the proceedings.  
It may also request any opinion it considers relevant  and any action conducive to the ascertainment of 
the facts.  Interested parties may comment on the information.   Likewise, interested parties and all tho se who demonstrate a legitimate interest in 
participating in the investigation may furnish pertinent evidence, reports and documents, up to 
45 working days before the date on which the Inv estigating Authority concl udes the investigation. 
  Article 113.  Confidential information .  Information shall be considered confidential if its 
disclosure or publication might injure the competiti ve position of the enterprise concerned or have a 
significantly adverse effect upon the person supplyi ng the information or if it is provided on a G/ADP/N/1/ECU/3 
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  confidential basis.  A separate file, which may be in spected only by the competent authorities, shall be 
opened for confidential information provided by th e applicant, other interested parties or the 
authorities. 
 
 Any confidential information submitted to th e investigation must be accompanied by a 
non-confidential summary that is detailed enoug h to permit a reasonable understanding of the 
information submitted in confidence.  
 If the authorities find that a request for confid entiality is not warranted and if the supplier of 
the information is unwilling either to make the in formation public or to authorise its disclosure in 
general terms or summary form, the authorities may disregard such information unless it can be 
demonstrated to their satisfaction from appropr iate sources that the information is correct. 
 
 Access to confidential information shall be r estricted to the compet ent authorities acting in 
performance of their functions, in the course of which confidentiality must be duly maintained. 
  Article 114.  Solutions agreed by the parties .  The competent authorities of the country of 
origin or export and the country's producers or  exporters may express, through the Investigating 
Authority, their intention to eliminate or limit the subsidy, revise the export prices or cease exports to 
Ecuador, as the case may be, so that the injury caused to the domestic producers is removed. 
  The Investigating Authority may not force exporters to enter into price undertakings.  The exporters shall periodically submit information rele vant to the fulfilment of undertakings accepted. 
 
 Article 115.  Amount of the countervailing duties .  If, once the investigation has been 
completed, it is determined that definitive count ervailing duties are to be imposed, the corresponding 
decision shall determine an amount, either equal to or less than the subsidy, that is necessary or 
sufficient to remove the in jury or threat thereof. 
  The duties shall be assessed in monetary units or as ad valorem  percentages, or a combination 
of the two. 
  Article 116.  Retroactive application of duties .  The retroactive application of definitive 
duties may be ordered in the following cases:  
 On imports entered between the date of in itiation of the investigation and the date of 
application of provisional duties, subject to a maximum of 90 working days.  In qualifying the imports, account shall be taken of  import trends during the above-mentioned period as compared with 
the trend over a period of three years prior to the date  of initiation of the investigation or the invitation 
to hold consultations.  Moreover, in each partic ular case the size of the market for the product 
investigated and other circumstances, such as a ra pid build-up of inventories of the imported product, 
shall be taken into consideration. 
  On imports entered during the 90 days precedi ng the establishment of provisional duties, in 
the event of non-fulfilment of undertakings given in statements of intent.  The period of application 
shall not exceed the duration of the period of non-fulfilment. 
 
 Article 117.  Application and duration of countervailing duties .  A countervailing duty 
shall be automatically eliminated five years afte r its imposition, unless it is determined from periodic 
reviews that the causes of its imposition still exist.  The public shall be notified by resolution of the 
maintenance or elimination of the duties.  G/ADP/N/1/ECU/3 
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 The National Customs Service of Ecuador sh all apply the duties in accordance with the 
resolution imposing them, taking into account the arrangements for collection and the applicable 
procedures prescribed by COMEX. 
  In any event, a countervailing duty shall rema in in force only as long and as far as is 
necessary to offset the subs idy which is causing injury. 
 
 Article 118.  Review of duties .  One year after the imposition of definitive duties, the 
Investigating Authority, ex officio or upon application by an interested party, shall order the investigation to be re-ope ned in order to review the duties, if it considers that the conditions which led 
to their being imposed have changed.  
 The resolution ordering the investigation to be reopened shall be equivalent to that which 
initiated the investigation.  Where an investigation is reopened by resolution, it shall be concluded 
within a period not exceeding five months.   Pending the conclusion of the investigation, th e countervailing duties shall be applied in full. 
 
 Article 119.  Margin of countervailing duties .  In submitting its conclusions, the 
Investigating Authority shall be responsible fo r recommending an amount for the countervailing 
duties to be applied, taking into account the amount of  the subsidy and the level of injury caused to 
the domestic industry.  The countervailing duties may on no account be higher than the amount of the subsidy. 
 
 Article 120.  Excess amounts and refunds .  Where the margin of the definitive 
countervailing duties is found to be lower than th e amount of the provisional duties paid, the full 
amount or the overpayment shall be refunded to th e importers, or the security shall be refunded or 
collected only in part.  The refunds shall be made  by the customs authority in accordance with the 
procedures established for the purpose. 
 
 When the decision to impose definitive measure s is based on the existence of a threat of 
injury or material retardation (the injury not yet having occurred), definitive countervailing duties 
may be established only from the date of the determina tion of threat of injury or material retardation 
in the establishment of a domestic industry, and the provisional duties shall be refunded and the 
corresponding securities released. 
  The application of countervailing duties sha ll not prevent the importation of the goods 
concerned into Ecuador.   Article 121.  Anti-circumvention measures .  Parts or components intended for the assembly 
or finishing in Ecuador of a like product to th at on which definitive duties are imposed may be 
subjected to payment of provisional or definitive duti es if such operations are shown to be a way of 
circumventing the duties imposed on the product.  
Assistance for Interested Parties in Dumping, Subsidies and 
Safeguards Investigations 
 
 Article 122.  Investigations of Ecuadorian exports for dumping, subsidies or safeguards .  
When an Ecuadorian producer or exporter learns that an investigation of its products for dumping, G/ADP/N/1/ECU/3 
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  subsidies or safeguards has been initiated abroad, it may call upon the Investigating Authority for 
technical and legal assistance in defending its interests.  
 The technical and legal assistance shall include guidance and collaboration in obtaining 
information, advice on the completion of forms and questionnaires, assistance in the event of 
on-the-spot investigations by foreign authorities and, in  general, any help which the Ministry is able to 
provide through its Investigating Authority.  
 Article 123.  Report to COMEX .  If investigations of Ec uadorian products for dumping, 
subsidies or safeguards are initiated abroad, the I nvestigating Authority shall inform COMEX of the 
substantive elements of the investigations, the measures adopted, the producers or exporters, the 
results obtained and the current situation.  Th e Investigating Authority may set up committees to 
monitor dumping, subsidies or safeguards investig ations conducted abroad into Ecuadorian products. 
 
 The committees shall consist of representatives of the chambers or associations of the 
industry to which the producer or exporter under i nvestigation belongs and of the Investigating 
Authority.  The committees shall regularly submit reports and recommendations to COMEX. 
 
Balance-of-Payments Protection Measures 
 
 Article 124.  Balance-of-payments protection measures .  The Committee on Foreign Trade 
may adopt trade measures in accordance with th e procedures provided in international trade 
agreements and treaties ratified by Ecuador, in order to safeguard Ec uador's external financial position 
and balance of payments. 
 
 Article 125.  Notification .  The governing body for foreign trade policy shall be responsible 
for notification and other procedures required by the multilateral, regional or subregional 
organizations under which Ecuador has si gned trade agreements or treaties. 
 
Other Trade Defence Measures 
 
 Article 126.  Other trade defence measures .  The Committee on Foreign Trade may adopt 
any temporary trade measure recognized by interna tional trade agreements and treaties duly ratified 
by Ecuador, the aim of which is to develop sp ecific productive activities in accordance with the 
government policy laid down in the National Developm ent Plan and the objectives established in this 
Code. 
  Article 127.  Foreign exchange safeguards .  The Committee on Foreign Trade may adopt 
transitional remedial measures, provided that they are allowed by the international trade agreements 
and treaties ratified by Ecuador, where a currency devalu ation by one of its trad ing partners alters the 
normal conditions of competition in one or more sectors of the domestic industry. 
 
 Article 128.  Preliminary reports .  In approving such measures, the Committee on Foreign 
Trade shall take as a basis the reports, analyses,  studies or other technical documents that the 
institutions represented on the Sectoral Produc tion Committee submit for the purpose through the 
Technical Secretariat.  In each case the implementation procedure shall be approved by COMEX in a 
resolution. 
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   Article 129.  International obligations of the State .  The Ministry in charge of foreign trade 
policy shall be responsible in each case for carrying out any actions provided for in trade agreements 
or treaties that facilitate the adoption of such  measures, and for submitting notifications and 
explanations to the competent bodies that form part of such trade ag reements and treaties. 
 
Trade Measures Applied by Governments of Third Countries  
 
 Article 130.  Monitoring of trade measures taken by foreign States .  The Ministry in 
charge of foreign trade policy shall continuously monitor any tariff and non-tariff measures adopted 
by trading partners that affect Ecuador's trading in terests, and to this end shall submit regular reports 
on the main problems affecting Ecuador's exports, so that the Committee may determine a suitable 
approach and guidance.  
 Article 131.  Follow-up of dispute proceedings .  The Ministry in charge of foreign trade 
policy shall report to the Committee on Foreign Tr ade every quarter on any dispute proceedings 
submitted to a panel, court of arbitration, intern ational court or any appe llate body established in 
accordance with international treaties or agreements, th at concern Ecuador's trading interests, so that 
the Committee may decide as to Ecuador's pa rticipation as a third interested party. 
 
 Article 132.  Decisions in foreign trade disputes .  The Ministry in charge of foreign trade 
policy shall report to COMEX any trade disagreements  arising between Ecuador and a trading partner 
that need to be referred to dispute settlement  bodies established in accordance with international 
treaties or agreements.  The Committee shall decide whether such dispute is to be submitted to a 
panel, court of arbitration, inte rnational court or any appellate bod y, provided that there are no other 
means of reaching a mutually satisfactory solu tion with the trading partner or partners. 
  The Attorney-General of the State shall be th e legal representative of the State of Ecuador and 
shall plead its case where the treaties and agreements  in force require a dispute to be referred to 
international arbitral or judicial bodies.  To this  end, the Committee on Foreign Trade, acting through 
the Ministry in charge of foreign trade, sh all undertake the necessary coordination with the 
Attorney-General of the State. 
  Article 133.  Resources for defending the country .  The Committee on Foreign Trade shall 
ensure the availability of both human and financ ial resources should a trade dispute between Ecuador 
and a trading partner or partners be referred to a pane l, court of arbitration, international court or any 
appellate body. 
  Article 134.  Implementation of decisions by international bodies .  The Ministry in charge 
of foreign trade policy shall submit for approva l by COMEX, appropriate measures to be taken 
pursuant result of rulings that panels, courts of arb itration, international courts or any appellate bodies 
issue for the settlement of trade disputes referred to them. 
 
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