. /.  WORLD TRADE  
ORGANIZATION   
G/ADP/Q1/BRA/14 
G/SCM/Q1/BRA/14 3 October 2011 
 
(11-4763) 
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 
 
Question Posed by the UNITED STATES Regarding the  
Notifications of BRAZIL1 
 
 The following communication, dated 30 September 2011, is being circulated at the request of the Delegation of the United States. 
 
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 Question 1 
 
 Article 5, Paragraph 2, Section VIII of Br azil's implementing regulations on circumvention 
(Directive 21 of 2010) states that circumvention is considered to have taken place when, among other 
things, there is evidence that the investigated pr oduct is being exported to Brazil or sold in the 
Brazilian market at prices lower than the norma l value previously established. Please explain the 
relevance of the requirement that the investigat ed product be at prices lower than the established 
normal value to the outcome of the circumvention i nvestigation.  In addition, please clarify whether 
you intend to adjust the previously established norma l value for factors that could affect the market 
price of the investigated product (e.g. inflation, changes in the prices of raw material inputs and 
fluctuations in world prices)? 
 
Question 2 
 
 Articles 10 and 14 of Brazil's implementi ng regulations on circumvention discuss the 
opportunity that shall be granted to interested parties to express their views and submit written 
evidence pertinent to a circumvention investigation.  Please explain in greater detail the periods in the 
investigation as to when interested parties ca n begin expressing their views and submitting written 
evidence.  For example, can an interested part y begin submitting written evidence immediately after 
the submission of an application?  Will the opport unities be limited to speci fic events/instances in the 
investigation or will there be multiple and con tinuous opportunities throughout the investigation for 
interested parties to express their views and submit written evidence?  
  
Question 3 
 
 Article 4, Paragraph 1 of the implementi ng regulations defines circumvention as the 
introduction into the national territory of anot her product with characteristics that although not 
identical are very similar to those of the good subj ect to the antidumping measure.  Please elaborate 
on the meaning of the phrase "very similar". 
                                                      
1 G/ADP/N/1/BRA/2/Suppl.5- G/SCM/N/1/BRA/2/Suppl.5;  G/ADP/N/1/BRA/2/Suppl.6-
G/SCM/N/1/BRA/2/Suppl.6.  G/ADP/Q1/BRA/14 
G/SCM/Q1/BRA/14 Page 2 
 
 
  Question 4 
 
 Article 8, Paragraph 9 of the implementing regulations states that once a circumvention 
investigation has been launched, DECOM shall no tify the Brazilian Revenue Department "to adopt 
any and all measures as necessary...."  Please descri be the nature of the "measures" that may be 
applied in such instances.  In addition, explain th e role Brazil's Revenue Department will play both 
during and following a circumvention investigation.    
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