. /.   WORLD TRADE  
ORGANIZATION  G/ADP/N/1/BRA/2/Suppl.4
G/SCM/N/1/BRA/2/Suppl.4 26 October 2010 
 
(10-5576) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
BRAZIL 
 
Supplement
 
   The following communication, dated 22 October 2010, is being circulated at the request of 
the Delegation of Brazil.   
 
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 CAMEX Resolution n. 63, 17 August 2010 
 
Art. 1º In accordance with Law no 9.019 of March 30th, 1995 the extension of antidumping and 
countervailing measures to imports of products from third countries, as well as to parts, pieces and 
components of the products subject to existing measures, in case it is found that circumvention of trade remedy measures in force is taking place, will observe the provisions of this Resolution. 
 
Sole Paragraph.  The extension of the provision s mentioned in the caput aims to ensure the 
effectiveness of trade remedy measures in force and may be applicable to:  I- a product alike in all aspects to the product subj ect to the trade remedy measure or to another 
product, which although not alike in all aspects, ha s characteristics closely resembling those of the 
product subject to the trade remedy measure;  and 
II- parts, pieces and components of the product defined in Item I, which, for the purposes of this Resolution, comprises raw materials, intermedia te products or any other good used in the 
manufacturing of the product defined in Item I.  
Art. 2º For the purposes of this Resoluti on, circumvention is considered to be: 
 I- the introduction in the national territory of parts, pieces or components whose industrialization 
results in the product mentioned in Article 1st; II- the introduction in the national territory of a product resulting from manufacturing operations, in 
third countries, of parts, pieces and components origin ated in or from the country subject to the trade 
remedy measure; III- the introduction in the national territory of th e product with minor modifications which do not 
alter its use or final destination;  or IV- any other practice that undermines the remedial  effects of trade remedy measures in force. 
 
§ 1º Circumvention, in the terms of this article, is taking place when there are: 
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  I- changes in trade flows after the initiation of the procedure that resulted in  the application of the 
trade remedy measure due to a process, an activity or a practice insufficiently motivated or with no 
economic justification; II- evidence that shows the undermining of the remedial  effects of the trade remedy measure in force 
in terms of the prices and/or quantities of the product;  and 
III- in the case of antidumping measures,  evidence that the product re ferred in Article 1st is being 
exported to Brazil or, as appropriate, sold in the Brazilian market at prices lower than the normal 
value previously established.  
§ 2º Without prejudice to §1st, a manufacturing oper ation will be considered to be circumvention 
when:  I- after the initiation of the procedure that resulted in  the application of the trade remedy measure in 
force, it is observed the beginning of an industrial operation, or its substantial increase, with parts, 
pieces or components of the product originated in or  from the country subject to the trade remedy 
measure;  and II- the parts, pieces or components originated in or  from the country subject to the trade remedy 
measure in force represent 60% (sixty per cent) or more of the total value of the parts, pieces or 
components of the product.  
§ 3º Circumvention shall not be considered to  be taking place when the value added in the 
manufacturing operation is greater than 25% (twent y five per cent) of the cost of manufacture. 
 Art. 3º The investigation to determine the exis tence of circumvention will be conducted by the 
Secretariat of Foreign Trade (SECEX) of the Mini stry of Development, Industry and Foreign Trade 
(MDIC).  Such investigation will be based on the ma in facts of the investigation that led to the 
application of trade remedy measures in force.  In  the course of the investigation, opportunity for 
interested parties to express their views will be provided.  Art. 4º The analysis to determine the existen ce of circumvention may be initiated upon request from 
an interested party or, in excepti onal circumstances, ex officio. 
 
Sole Paragraph.  An application of an inter ested party shall include reasonable evidence that 
circumvention is taking place, without prejudice of other information that the investigating authority 
may require.  
Art. 5º The extension of trade remedy measures in the terms of this Resolution will be decided by the 
Foreign Trade Chamber (CAMEX).  Art. 6º SECEX/MDIC will issue complementary regulations for the implementation of this 
Resolution, especially regarding the investigatio n procedure for the extension of trade remedy 
measures, applying, wherever possible, the pr ovisions of the trade remedy legislation. 
 
Art. 7º This Resolution enters into force on the date of its publication.    
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