WORLD TRADE G/ADP/N/1/BRA/2
26August 1997
ORGANIZATION(97-3480)
Original: English Committee onAnti-Dumping Practices
NOTIFICATION OFLAWS AND REGULATIONS
UNDER ARTICLE 18.5OFTHE AGREEMENT
BRAZIL
Thefollowing communication, dated 19August 1997, hasbeenreceived fromthePermanent
Mission ofBrazil.
_______________
TABLE OFCONTENTS
Page
TitleI Procedures ...........................................3
Chapter I Principles .......................................3
Chapter II Determination ofDumping ............................3
Section I Normal Value ...............................4
Section II Export Price ................................6
Section III Comparison Between Normal Value andExport Price ......6
Section IV Margin ofDumping ...........................7
Chapter III Determination ofInjury ..............................8
Chapter IV Definition ofDomestic Industry .........................10
Chapter V TheInvestigation ..................................11
Section I Application .................................11
Section II Initiation oftheInvestigation ......................13
Section III Conduction oftheInvestigation ....................14
Subsection IEvidence .............................14
Subsection IIDefence oftheInterests oftheParties ...........16G/ADP/N/1/BRA/2
Page2
Page
Subsection IIIFinal Procedures Concerning theConduction
oftheInvestigation .......................16
Section IV Provisional Anti-Dumping Measures .................17
Section V Price Undertakings ............................18
Section VI Conclusion oftheInvestigation ....................19
Chapter VI Imposition andCollection ofAnti-Dumping Measures ...........20
Section I Imposition .................................20
Section II Charges ...................................21
Section III Products Subject toProvisional andDefinitive Anti-
Dumping Measures ............................21
Chapter VII Duration andReview ofAnti-Dumping Measures andPrice
Undertakings .....................................22
Chapter VIII Public Notice andExplanation ofDeterminations ..............24
Chapter IX Anti-Dumping Actions onBehalf ofaThird Country ............24
Chapter X TheForm ofProcedural ActsandTerms ...................24
Chapter XI TheDecision-Making Process ..........................25
TitleII Special Procedures ......................................25
Chapter I On-The-Spot Investigations ............................25
Chapter II BestInformation Available ............................26
Chapter III General Provisions .................................27G/ADP/N/1/BRA/2
Page3
DECREE Nº1602 OF23AUGUST 1995
Regulates theNorms Governing
Administrative Procedures Regarding
theImposition ofAnti-Dumping Measures
ThePresident oftheRepublic, byvirtue ofthepowers vested inhimbyArt.84,sections IV
andVI,oftheConstitution andtaking intoconsideration theprovisions oftheAgreement Regarding
theImplementationofArticleVIoftheGeneralAgreementonTariffsandTrade-GATT1994,approved
byLegislative Decree nº30on15December 1994, andpromulgated byDecree nº1.355 of
30December 1994, andLawnº9.010 of30March 1995, wherein provision ismade fortheimposition
ofthemeasures established bytheAnti-dumping Agreement,
DECREES:
TITLE I
PROCEDURES
Chapter I
PRINCIPLES
Art.1.Anti-dumping measures maybeimposed when imports ofprimary andnon-primary dumped
products cause injury todomestic industry.
1.1 Anti-dumping measures shallbeimposed based onopeninvestigations initiated andconducted
pursuant totheprovisions ofthisDecree.
1.2 Pursuant totheprovision ofParagraph 5ofArticle VIofGATT/1994, theimport ofaproduct
maynotbesubject, simultaneously, totheimposition oftheanti-dumping measure andacompensatory
measure which ispartoftheGATT/1994 Agreement onSubsidies andCompensatory Measures.
Art.2.Itiswithin thecompetency oftheMinister ofIndustry, Commerce andTourism andtheMinister
ofFinance tomake thedecision toimpose, byjointaction, provisional anti-dumping measures or
definitive measures andapprove priceundertakings based onthefindings oftheSecretariat ofForeign
Trade -SECEX, oftheMinistry ofIndustry, Commerce andTourism, which determines theexistence
ofdumping andtheresulting injury.
Art.3.SECEXisresponsibleforundertakingtheadministrativeprocessthatisgovernedbythisDecree.
Chapter II
DETERMINATION OFDUMPING
Art.4.Forthepurposes ofthisDecree, thepractice ofdumping isconsidered tobetheintroduction
ofaproduct intothedomestic market, including under themethod ofdrawback, atanexport price
thatisbelow thenormal value.G/ADP/N/1/BRA/2
Page4
Section I
Normal Value
Art.5.Normal value isconsidered tobetheprice thatisactually being charged forthelikeproduct
under ordinary course oftrade, forinternal consumption intheexporting country.
5.1 Theterm“likeproduct ”shallbeunderstood asanidentical product, thatisequal inallaspects
totheproduct being examined, or,intheabsence ofsuchaproduct, another product that,although
notexactly equal inallaspects, hascharacteristics closely resembling those oftheproduct under
consideration.
5.2 Theterm“exporting country ”shallbeunderstood asthecountry oforigin andofexportation,
except inthehypothesis provided forinArt.10.
5.3 Thesalesofthelikeproduct forinternal consumption intheexporting country shallbenormally
considered asbeing ofsufficient quantity fordetermining theirnormal value, iftheyconstitute 5%
ormore oftheproduct ´ssalestoBrazil, allowing alower percentage when itshallbedemonstrated
thatdomestic salesatthispercentage dooccur insufficient quantity topermit adequate comparison.
Art.6.Should there benosales ofthelikeproduct intheordinary course oftrade inthedomestic
market orwhen, forreasons ofspecial market conditions orlowsalesvolume, adequate comparison
isimpossible, thenormal value shallbebased:
I. onthepriceofthelikeproduct being charged inexporting operations toathirdcountry,
aslongasthisprice isrepresentative; or
II. onthevalue asdetermined inthecountry oforigin, taking intoaccount thecostof
production inthecountry oforigin plusareasonable amount foradministrative and
selling costs, inaddition toamargin ofprofit.
6.1 Forpurposes ofprice, they maybeconsidered asnotbeing intheordinary course oftrade
andthusnotconsidered indetermining normal value, those salesofthelikeproduct inthedomestic
market oftheexporting county orsalestoathirdcountry, atprices below perunit(fixed andvariable)
costs ofproduction, administrative andselling costs being included.
6.2 Theprovision ofthepreceding paragraph shallbeapplied onlywhen itisshown thatsales
aremade:
(a) overalongperiod, normally oneyear, butnever lessthansixmonths;
(b) insubstantial quantities, being considered assuchthose transactions taken intoaccount
fordetermining normal value, made ataweighted average price forsalesbelow the
weighted average unitcost, orasalesvolume below theunitcostcorresponding to
20%ormore ofthevolume soldintransactions considered fordetermining normal
value; and
(c) atprices thatdonotpermit covering allcosts within areasonable period oftime.
6.3 Theprovision ofitem “c”ofthepreceding paragraph doesnotapply when itisshown that
theprices below theunitcost,atthemoment ofsale,areabove theweighted average unitcostfound
inthecourse oftheinvestigation.G/ADP/N/1/BRA/2
Page5
6.4 Transactions among parties whoareconsidered associated orwhohaveagreed acompensatory
arrangement among themselves maybeconsidered asnotbeing intheordinary course oftrade and
notbetaken intoaccount indetermining normal value, unless itisproven thattherelated prices and
costs arecomparable tothose ofoperations among parties thatarenotsorelated.
6.5 Thecosts thataretreated initemIIofthisarticle, shallbecalculated based ontherecords
keptbytheexporter orbytheproducer oftheproduct being investigated, aslongassuchrecords
arepursuant toaccepted accounting principles intheexporting country andreflect thecosts related
totheproduction andsaleoftheproduct inquestion.
6.6 Available evidence shallbeconsidered regarding appropriate distribution ofcosts, including
those furnished bytheexporter orproducer inthecourse oftheinvestigation procedures, aslongas
suchdistribution hasbeentraditionally usedbytheexporter orproducer, particularly when determining
adequate periods ofamortization anddepreciation andallowances resulting fromcapital expenses and
other development costs.
6.7 Adequate adjustment shallbemade forthose non-recurring costitems thatbenefit future and/or
present production, orforcircumstances inwhich thecostsobserved inthecourse oftheinvestigation
period areaffected bystart-up operations, atleastiftheyreflect onthedistribution mentioned inthe
preceding paragraph.
6.8 Theadjustments made duetostart-up mustreflect thecostsverified attheclose ofthestart-up
period or,should suchperiod extend beyond thatcovered bytheinvestigation, themostrecent costs
thatcanbetaken intoaccount inthecourse oftheinvestigation.
6.9 Calculation oftheamount referred toinitemIIofthisarticle, shallbebased oneffective
production andsalesdataofthelikeproduct, donebytheproducer orexporter under investigation,
during thenormal course oftrade.
6.10 When calculation oftheamount cannot bedone based ondatamentioned inthepreceding
paragraph, itshallbedonebymeans of:
(a) theactualamountsincurredandrealizedbytheexporterorproducerinquestion,relative
toproduction andsaleofproducts ofthesame category, inthedomestic market of
theexporting country;
(b) theweighted average oftheactual amounts incurred andrealized byother exporters
orproducers under investigation, inrelation totheproduction andselling ofthelike
product onthedomestic market oftheexporting country;
(c) anyotherreasonable method, aslongastheamount stipulated forprofit doesnotexceed
theamount ofprofit normally made byother exporters orproducers from sales of
products ofthesamegeneral category, inthedomestic market oftheexporting country.
Art.7.When difficulties occur indetermining acomparable priceasinthecaseofimports originating
inacountry thatisnotpredominantly oriented toward amarket economy, where domestic prices are
forthemostpartestablished bytheState, thenormal value maybedetermined based onthepricecharged
oronthevalue determined forthelikeproduct inathirdcountry thathasamarket economy, oron
thepricecharged bythelatter country foritsexports toother countries, excluding Brazil, or,whenever
thisisnotpossible, based onanyother reasonable price, including theprice paidortobepaidfor
thelikeproduct intheBrazilian market, dulyadjusted, ifnecessary, toinclude areasonable margin
ofprofit.G/ADP/N/1/BRA/2
Page6
7.1 Thechoice ofthethirdcountry withanadequate market economy shalltakeintoaccount any
reliable information presented atthetimeofselection.
7.2 Thetimeframes oftheinvestigation shallbetaken intoaccount and,whenever feasible, recourse
shallbehadtoathirdcountry withamarket economy thatistheobject ofthesame investigation.
7.3 Theinterested parties shallbenotified, immediately aftertheinitiation oftheinvestigation,
regarding thethirdcountry withamarket economy thatistobeused, andaperiod oftimeshallbe
established forreturning therespective questionnaires mentioned intheleadparagraph ofArt.27.
Section II
Export Price
Art.8.Theexport priceshallbetheactual pricepaidortobepaidfortheproduct exported toBrazil,
freeofmeasures, discounts andreductions actually granted anddirectly related tothesales under
consideration.
Soleparagraph. Incases where there isnoexport price orwhere thisappears unreliable, due
toanassociation orcompensatory arrangement between theexporter andanimporter orathirdparty,
theexport price maybeconstructed using:
(a) heprice forwhich imported products have been resold forthefirsttimetoan
independent buyer; or
(b) areasonable basis, inthecaseofproducts thatarenottoberesold toindependent
buyers, ornottoberesold inthesame condition aswhen theywere imported.
Section III
Comparison Between Normal Value andExport Price
Art.9.Afaircomparison shallbemade between theexport price andthenormal value, atthesame
leveloftrade, normally thatofex-factory level, inrespect ofsalesmade atasnearly aspossible the
same time. Theinterested parties, asdefined inparagraph 3ofArt.21shallbenotified regarding
thetypeofinformation necessary forensuring afaircomparison, without requiring excessive burden
ofproof from them.
9.1 Forpurposes ofadjustment ineachcaseaccording toitsspecific characteristics anexamination
shallbemade ofthedifferences thataffect pricecomparison, among themdifferences intheconditions
andterms ofsale,taxation, levels oftrade, quantities, physical characteristics andanyother differences
thatdemonstrably affect price comparability. When some ofthese factors overlap, duplication of
adjustments already made shallbeavoided.
9.2 Forthepurpose ofimposition ofthesoleparagraph ofArt.8,adjustments shallalsobeadmitted
infunction ofcosts incurred between importation andresale, including import measures, other taxes
andprofits accounted for.
9.3 Incases suchasdescribed inthepreceding paragraph, ifthecomparison isaffected, thenormal
value shallbeestablished onatrade level equivalent tothatoftheconstructed export price, orthe
adjustments provided forinparagraph 1ofthisarticle maybemade.G/ADP/N/1/BRA/2
Page7
9.4 Theamount oftheadjustment shallbecalculated based onrelevant datacorresponding to
theperiod ofinvestigation concerning theexistence ofdumping, referred toinparagraph 1ofArt.
25,orondatafrom thelastavailable fiscal year.
9.5 Intheevent ofapricecomparison, asprovided forintheleadparagraph ofthisarticle, requiring
currencies conversion, therateofexchange ineffect onthedayofsalewillbeused, except when there
occurs asaleinforeign currency inforward markets directly linked totheexport saleinvolved, and
thentherateofexchange intheforward saleshallbeused.
9.6 Innormal situations, thedayofsaleshallbethecontract date,thepurchase order dateorthe
dateofconfirmation oftheorder oroftheinvoice, whichever establishes thematerial terms ofsale.
9.7 Fluctuations inexchange ratesshallbeignored and,forpurposes ofinvestigation, aperiod
ofatleastsixtydaysshallbeconsidered necessary fortheexporters toadjust theirexport prices, in
order toreflect relevant alterations thathaveoccurred during theperiod ofthedumping investigation.
Art.10.Inthecaseofaproduct notbeing imported directly fromitscountry oforigin, butexported
toBrazil from athird intermediary country, theprovisions ofthisDecree shallalsobeapplied and
theprice forwhich theproduct issoldtoBrazil bytheexporting country shallbecompared withthe
comparable price intheexporting country.
Soleparagraph. Thecomparison maybemade withtheprice inthecountry oforigin, if:
(a) theproduct ismerely transshipped through theexporting country;
(b) theproduct isnotproduced intheexporting country; or
(c) there isnocomparable price fortheproduct intheexporting country.
Section IV
Margin ofDumping
Art.11.Themargin ofdumping shallbethedifference between thenormal value andtheexport price.
Art.12.Theexistence ofamargin ofdumping shallbedetermined based onacomparison between:
I. theweighted average normal value andtheweighted average oftheprices ofall
comparable export transactions; or
II. thenormal value andtheexport prices onatransaction-to-transaction basis.
12.1 Anormal value, determined bymeans ofaweighted average, canbecompared withtheprices
ofspecific export transactions inthecasewhere apattern ofprices isfound forexports thatdiffers
significantly among different purchasers, regions ortimeperiods andifanexplanation isgiven for
thereasonthatsuchdifferencescannotbetakenintoaccountbytheuseofaweightedaverage-to-weighted
average ortransaction-to-transaction comparison.
12.2 Sampling techniques maybeusedtodetermine thenormal value andtheexport prices, by
using prices thatappear withthemostfrequency orthatarethemostrepresentative, aslongasthey
include asignificant amount ofthetransactions under examination.G/ADP/N/1/BRA/2
Page8
Art.13.Determiningtheindividualmarginofdumpingforeachoneoftheknownexportersorproducers
oftheproduct under investigation shallbethegeneral rule.
13.1 Inacasewhere thenumber ofknown exporters, producers andimporters ortypes ofproducts
being investigated issolarge thatitbecomes impractical toproceed withthedetermination citedin
thepreceding paragraph, theinvestigation maylimititself to:
(a) areasonable number ofinterested parties orproducts, bymeans ofvalid statistical
sampling based oninformation available atthetimeofselection; or
(b) thelargest percentage ofthevolume ofexports from thecountry inquestion, which
canreasonably beinvestigated.
13.2 Anyselection ofexporters, producers, importers ortypes ofproducts thatismade pursuant
totheprovision ofthepreceding paragraph, shallgointoeffect afterconsultation withtheexporters,
producers orimporters, andtheirconsent obtained, aslongasthenecessary information hasbeen
provided forselecting therepresentative sample.
13.3 Should anyoftheselected firms notfurnish therequested information, another selection shall
bemade. Ifthere isnotenough timetomake anewselection orifthenewfirms selected alsofail
toprovide therequested information, thedetermination ordecision shallbebased onthebestinformation
available, pursuant totheprovision ofArt.66.
13.4 Theindividual margin ofdumping shallalsobedetermined foreachexporter orproducer
whohasnotbeenincluded intheselection, butwhoprovides thenecessary information when thisis
being considered inthecourse oftheinvestigation process, withtheexception ofsituations inwhich
thenumber ofexporters orproducers issolarge thatanalysis ofindividual cases implies a
disproportionate burden andimpedes conclusion oftheinvestigation within thedesignated timeperiod.
Voluntary replies shallnotbediscouraged.
Chapter III
DETERMINATION OFINJURY
Art.14.Forthepurposes ofthisDecree, theterm“injury ”shallbeunderstood asmaterial injury or
thethreat ofmaterial injury toanalready established domestic industry oramaterial retardation in
establishing suchanindustry.
14.1 Determination ofinjury shallbebased onpositive evidence andshallinclude anobjective
examination of:
(a) thevolume ofdumped imports;
(b) theireffect onprices ofthelikeproduct inBrazil; and
(c) theconsequent impact ofsuchimports onthedomestic industry.
14.2 Regarding thevolume ofdumped imports, itshallbedetermined whether thisissignificant
andifthere hasbeenasubstantial increase inimports under suchconditions, bothinabsolute terms
orrelative toproduction orconsumption inBrazil.
14.3 Forpurposes oftheinvestigation, annegligible volume ofimports, coming from acertain
country, isnormally understood tobelessthanthree percent ofBrazil ´simports ofthelikeproduct,G/ADP/N/1/BRA/2
Page9
unless thecountries that,individually, provide lessthan3%ofBrazil ´simports ofthelikeproduct,
collectively areresponsible formore than7%oftheproduct ´simports.
14.4 Astotheeffect thatdumped imports haveonprices, itshallbetaken intoaccount whether
there hasbeenasignificant price undercutting forimported products atdumped prices inrelation to
theprice ofthelikeproduct inBrazil, orwhether suchimports havehadtheeffect ofsignificantly
depressingpricesorimpedinginarelevantwaypriceincreaseswhichwouldhaveoccurredintheabsence
ofsuchimports.
14.5 None ofthese factors alone, norseveral ofthem together, shallnecessarily beconsidered
asgiving decisive guidance.
14.6 When imports ofaproduct coming frommore thanonecountry aresimultaneously subject
toinvestigation, theeffects ofsuchimports shallbeassessed cumulatively, ifitisdetermined that:
(a) themargin ofdumping established foreachoneofthecountries ismore thanthe
deminimis andthatthevolume ofimports from eachcountry isnotnegligible; and
(b) thecumulative assessment oftheeffects ofthose imports isappropriate inthelight
oftheconditions ofcompetition between imported products andtheconditions of
competition between theimported products andthelikedomestic product.
14.7 Themargin ofdumping shallbeconsidered deminimis when, expressed asapercentage of
theexport price, itisbelow 2%.
14.8 Theexamination oftheimpact thatdumped imports haveonthedomestic industry shallinclude
anevaluation ofallrelevant economic factors andindices having abearing onthestateoftheindustry,
including actual orpotential decline insales, profits, output, market share, productivity, return on
investments orutilization ofcapacity; factors affecting domestic prices; themagnitude ofthemargin
ofdumping;actualandpotentialnegativeeffectsoncashflow,inventories,employment,wages,growth,
ability toraisecapital orinvestments.
14.9 Thelistoffactors inthepreceding paragraph isnotexhaustive, norcanoneorseveral of
these factors necessarily givedecisive guidance.
Art15.Acausal linkmustbedemonstrated between thedumped imports andtheinjury tothedomestic
industry, based onanexamination of:
I. relevant evidence; and
II. other known factors, besides thedumped imports, thatcould becausing injury to
domestic industry atthesame time, andsuchinjuries, caused byfactors other than
thedumped imports, must notbeattributed tothose imports.
15.1 Therelevant factors under theseconditions include, interalia,thevolume andprices ofimports
thatarenotsoldatdumping prices, theimpact oftheprocess ofliberalization ofimports ondomestic
prices, contraction indemand orchanges inconsumer patterns, traderestrictive practices bydomestic
andforeign producers, andcompetition between them, developments intechnology, andtheexport
performance andproductivity ofthedomestic industry.G/ADP/N/1/BRA/2
Page10
15.2 Theeffect ofdumped imports shallbeassessed inrelation tothedomestic industry, when
available datapermit separate identification ofsuchproduction, based oncriteria suchastheproductive
process, producers ´salesandprofits.
15.3 Ifsuchseparate identification ofthatproduction isnotpossible, theeffects ofdumped imports
shallbeassessed byexamination oftheproduction ofthenarrowest group orrange ofproducts, which
includes thelikeproduct, forwhich thenecessary information canbeprovided.
Art16.Thedetermination oftheexistence ofathreat ofmaterial injury shallbebased onfactsand
onaconvincing reason, notmerely onallegation, conjecture orremote possibility. Change ofthe
circumstances thatcould bring about asituation inwhich dumping would cause injury, mustbeclearly
foreseen andimminent.
16.1 Inmaking adetermination regarding theexistence ofathreat ofmaterial injury, consideration
shallbegiven, interalia, tothefollowing factors:
(a) asignificantrateofincreaseofdumpedimports,indicatingthelikelihoodofsubstantially
increased importation;
(b) sufficient freely disposable, oranimminent, substantial increase incapacity ofthe
exporter indicating thelikelihood ofsubstantially increased dumped exports toBrazil,
taking intoaccount theavailability ofother export markets toabsorb anyadditional
exports;
(c) whether imports areentering atprices thatwillhave asignificant depressing or
suppressing effect ondomestic prices, andwould likely increase demand forfurther
imports, and;
(d) inventories oftheproduct being investigated.
16.2 None ofthefactors inthepreceding paragraph, byitself, willgivedecisive guidance, but
thetotality ofthese factors mustleadtotheconclusion thatfurther dumped imports areimminent and
that,unless protective action istaken, material injury would occur.
Chapter IV
DEFINITION OFDOMESTIC INDUSTRY
Art.17.Forthepurposes ofthisDecree, theterm“domestic industry ”shallbeinterpreted asreferring
tothedomestic producers asawhole ofthelikeproducts ortothose ofthem whose collective output
oftheproducts constitutes amajor proportion ofthetotaldomestic production ofthose products, except
that:
I. when producers arerelated totheexporters orimporters orarethemselves importers
oftheallegedly dumped product, theterm“domestic industry ”maybeinterpreted
asreferring totherestoftheproducers;
II. inexceptional circumstances asdefined inparagraph 4ofthisarticle, Brazil isdivided
intotwoormore competing markets, andthentheterm“domestic industry ”shallbe
interpreted asthegroup ofproducers inoneofthose markets.G/ADP/N/1/BRA/2
Page11
17.1 Forthepurposes ofthisarticle, producers shallbeconsidered asbeing related totheexporters
ortheimporters onlyinthecasewhere:
(a) oneofthem controls theother, directly orindirectly;
(b) botharecontrolled directly orindirectly byathirdparty;
(c) bothcontrol athirdparty directly orindirectly.
17.2 Thecases citedinthepreceding paragraph shallonlybeconsidered ifthere arereasons to
believe orsuspect thattheserelationships mayleadtheproducer inquestion toactinamanner different
from those whoarenotpartofsucharelationship.
17.3 Forpurposes ofthisarticle, control isconsidered toexist when theformer islegally or
operationally abletoexercise restraint ordirection overthelatter.
17.4 Forpurposes ofimposing theprovision ofitemIIofthisarticle, producers ineachmarket
maybeconsidered asadistinct domestic industry, if:
(a) theproducers within suchamarket sellalloralmost alloftheirproduction ofthe
product inquestion inthatmarket;
(b) thedemand inthatmarket isnottoanysubstantial degree supplied byproducers of
theproduct inquestion located elsewhere intheterritory.
17.5 Inthecaseofparagraph 4ofthisarticle, injury maybefound toexist, evenwhen amajor
portion ofdomestic production isnotbeing injured, provided thereisaconcentration ofdumped imports
inthatmarket andthese arecausing injury totheproducers ofalloralmost alloftheproduction of
thatmarket.
Chapter V
THE INVESTIGATION
Section I
Application
Art.18.Except asprovided forinart.24,aninvestigation todetermine theexistence, degree and
effect ofanyalleged dumping shallberequested bythedomestic industry oronitsbehalf bymeans
ofanapplication inwriting, pursuant tothedirections issued bySECEX.
18.1 Theapplication cited intheleadparagraph must include evidence ofdumping, injury and
ofacausal linkbetween thedumped imports andthealleged injury, along withthefollowing data:
(a) theidentity oftheapplicant, andadescription ofthevolume andvalue ofthe
corresponding production bythedomestic industry. Inacasewhere theapplication
issubmitted onbehalf ofadomestic industry, theapplication mustindicate thename
oftheindustry onwhose behalf itisbeing submitted andthename ofthefirms
represented, aswellthevolume andvalue ofthecorresponding production;
(b) anestimate ofthevolume andvalue ofnational production ofthelikeproduct;G/ADP/N/1/BRA/2
Page12
(c) alistoftheknown domestic producers ofthelikeproduct thatarenotrepresented in
theapplication, andinsofaraspossible, anindication ofthevolume andvalue ofthe
domestic production ofthelikeproduct bysuchproducers, aswellastheiropinion
regarding support oftheapplication;
(d) acomplete description oftheallegedly dumped product, thenames oftherespective
country orcountries oforigin orexport, theidentity ofeachknown exporter orforeign
producer andalistoftheknown persons importing theproduct inquestion;
(e) acomplete description oftheproduct manufactured bythedomestic industry;
(f) information about therepresentative price being charged fortheproduct inquestion,
whensoldforconsumptioninthedomesticmarketoftheexportingcountryorcountries,
orincases provided forinArt.6,information about therepresentative salesprice of
theproduct bytheexporting country orcountries toathirdcountry orcountries, or
about theconstructed value oftheproduct.
(g) information regarding therepresentative export priceor,incases provided forinArt.
8,information about therepresentative salesprice oftheproduct when soldforthe
firsttimetoanindependent buyer inBrazil.
(h) information ontheevolution ofthevolume ofallegedly dumped imports, theeffect
ofthese imports onprices ofthelikeproduct onthedomestic market andthe
consequent impact oftheimports onthedomestic industry, asdemonstrated byrelevant
factors andindices having abearing onthestateofthatindustry.
18.2 Should theapplication contain confidential information, theprovision ofArt.28shallapply.
Art.19.Theapplication willundergo apreliminary examination inorder toverify ifitisappropriate
orifcomplementary information isneeded. Theresult ofthisexamination shallbecommunicated
totheapplicant within twenty daysfrom thedateofsubmission oftheapplication.
19.1 When complementary information isrequested, anewexamination shallbemade inorder
toverify iffurther information isrequired oriftheapplication isappropriate. Theapplicant shallbe
notified oftheresult ofthisexamination within twenty daysfrom thedateofsubmission ofthe
complementary information.
19.2 Theapplicantshallbenotifiediftheapplicationisappropriateorifithasbeenjudgedinadequate
within aperiod oftwenty daysfrom thedateofsubmission ofnewinformation.
19.3 Thetimeperiod forattending tocomplementary information ornewinformation thathasbeen
requested shallbedetermined bySECEX, according tothenature oftheinformation, andtheapplicant
shallbesonotified.
19.4 Theapplicant shallhavetendays, from thedateofissue ofthecommunication informing
thattheapplication isappropriate, topresent asmany copies ofthecomplete textoftheapplication,
including thenon-confidential summary ofthesame, when suchisthecase, pursuant totheterms of
paragraph 1ofArt.28,asthere areknown producers andexporters andgovernments ofthelisted
exporting countries.
19.5 Inacasewhere thenumber ofproducers andexporters, citedinparagraph 4,isparticularly
high, copies oftheapplication maybefurnished onlyforsubmission tothegovernments ofthelisted
exporting countries andtothecorresponding representative associations.G/ADP/N/1/BRA/2
Page13
Section II
Initiation oftheInvestigation
Art.20.Evidence ofdumping andtheinjury caused byitshallbeconsidered simultaneously inthe
analysis todecide oninitiation oftheinvestigation.
20.1 Withabasisoninformation fromothersources thatarepromptly available, theappropriateness
andadequacy oftheevidence offered intheapplication shallbeexamined, inorder todetermine the
existence ofsufficient motives tojustify theinitiation ofaninvestigation.
20.2 SECEX shallproceed totheexamination ofthelevelofsupport orrejection oftheapplication
asshown byother national producers ofthelikeproduct, inorder toverify whether theapplication
wassubmitted bydomestic industry oronitsbehalf. Inthecaseofafragmented industry thatinvolves
anespecially largenumber ofproducers, support orrejection maybeconfirmed byusing validstatistical
sampling techniques.
20.3 Anapplication shallbeconsidered asbeing made “bydomestic industry oronitsbehalf ”
ifitissupported bythose producers whose collective output constitutes more than50%ofthetotal
productionofthelikeproductproducedbythatportionofthedomesticindustryexpressingeithersupport
fororopposition totheapplication.
Art.21.Theapplicant shallbenotified ofthedecision, affirmative ornegative, regarding theinitiation
ofaninvestigation, within thirty daysfromthedateoftheissueofthecommunication stating thatthe
application isadequate.
21.1 Theapplication shallberejected and,consequently, theprocess shallbeterminated, when:
(a) there isnotsufficient evidence oftheexistence ofdumping orofinjury caused bythe
same, thatwould justify anyinvestigation;
(b) theapplication wasnotsubmitted bythedomestic industry noronitsbehalf; or
(c) thedomestic producers supporting theapplication account forlessthan25%ofthe
totalproduction ofthelikeproduct bythedomestic industry.
21.2. Should thedecision beaffirmative, theinvestigation shallbeinitiated andanotice shallbe
published inthe“Diario Oficial ”(Official Gazette) regarding suchdecision. Theknown involved parties
shallbenotified andshallbegranted aperiod oftwenty daysfromthedateofpublication ofthedecision
foranapplication requesting thequalifying ofother parties thatareconsidered asbeing interested,
withtherespective indication oftheir legal representatives, pursuant totheprovision ofrelevant
legislation.
21.3 Forthepurposes ofthisDecree thefollowing aretobeconsidered asinterested parties:
(a) domestic producers ofthelikeproduct andtheassociation thatrepresents them;
(b) importers orconsignees ofthegoods under investigation andtheassociation that
represents them;
(c) foreign exporters orproducers oftheproduct inquestion andtheassociations that
represent them;G/ADP/N/1/BRA/2
Page14
(d) thegovernment ofthecountry exporting theproduct inquestion;
(e) other parties, either Brazilian orforeign, considered bySECEX tobeinterested.
21.4 Assoonastheinvestigation isinitiated andwithout prejudice totherighttoconfidentiality,
thecomplete textoftheapplication which requested itshallbefurnished totheknown foreign producers
andexporters andtotheauthorities oftheexporting country andmust bemade available toother
interested parties, ifrequired. Inacasewhere thenumber ofinterested producers andexporters is
especially large, thecomplete textoftheapplication shallbefurnished onlytotheauthorities ofthe
exporting country andtothecorresponding representative associations.
Art.22.After initiating theinvestigation, SECEX shallnotify theFederal Revenue Secretariat ofthe
Ministry ofFinance, sothatitmaytaketheappropriate stepswhich, should itbethecase,willprovide
fortheimposition ofdefinitive anti-dumping measures ontheimports thataretheobject ofthe
investigation, referred toinArt.54.
Soleparagraph. Themeasures adopted bytheFederal Revenue Secretariat, pursuant tothis
article, shallnothinder theprocedures ofcustoms clearance.
Art.23.Prior tothedecision toinitiate aninvestigation, theexistence oftheapplication requesting
itshallnotbemade public except inthecaseofthegovernment oftheexporting country concerned,
which must benotified oftheexistence ofadulyqualified application.
Art.24.Under exceptional circumstances, theFederal Government, exoficio ,mayinitiate the
investigation aslongasthereissufficient evidence ofdumping, injury andacausal linkbetween them
whichjustifiestheinitiationofaninvestigation.Thegovernmentofthecountryconcernedshallbenotified
oftheexistence ofsuchevidence, before theinitiation oftheinvestigation.
Section III
Conduction oftheInvestigation
Art.25.Inthecourse oftheinvestigation, theevidence ofdumping andinjury caused byit,shall
beexamined simultaneously.
25.1 Theperiod ofinvestigation forascertaining theexistence ofdumping mustinclude thetwelve
previous months asclose aspossible totheinitiation oftheinvestigation, and,under exceptional
circumstances, maybelessthantwelve months butnever lessthansix.
25.2 Theperiod ofinvestigation regarding theexistence ofinjury mustbesufficiently representative
topermit analysis asprovided forinChapter III,maynotbelessthanthreeyears, andshallnecessarily
include theperiod during which dumping isinvestigated.
Subsection I
Evidence
Art.26.Allinterested parties inananti-dumping investigation shallbegiven notice oftheinformation
required andshallhaveample opportunity tosubmit, inwriting, allevidence thattheyconsider relevant
inrespect oftheinvestigation inquestion.G/ADP/N/1/BRA/2
Page15
Soleparagraph. Dueconsideration shall begiven toanydifficulties encountered bythe
interested parties, especially small enterprises, inproviding requested information, andanypossible
assistance shallbegiven them.
Art.27.Allinterested parties, except thegovernments oftheexporting countries, shall receive
questionnaires forpurposes oftheinvestigation andshallhavefortydayswithin which toreturn them.
Thisperiod shallbecounted from thedatethequestionnaires areissued.
27.1 Anyrequestsforanextensionoftheforty-dayperiodshallbedulyconsideredandifitsnecessity
isdemonstrated, suchextension maybeauthorized whenever practicable foraperiod ofuptothirty
days, taking intoaccount thetimeperiods oftheinvestigation.
27.2 Additional orcomplementary information mayberequested oraccepted inwriting throughout
aninvestigation. Thetimeperiod forproviding requested information shallbestipulated based on
thenature oftheinformation andmaybeextended when adulyjustified request ismade. Thetime
periods fortheinvestigation itself must betaken intoaccount bothforinformation thatisrequested
andforconsideration ofsuchadditional information submitted.
27.3 Should anyoftheinterested parties denyaccess tonecessary information, notproviding it
ontimeorcreating obstacles totheinvestigation, thefindings related topreliminary orfinaldecisions
shallbecomposed based onthebestinformation available, pursuant totheprovision ofArt.66.
Art.28.Information which isconfidential bynature orwhich hasbeenprovided asbeing confidential
bytheparties intheinvestigation shallbetreated assuch, upon good cause shown, andshallnotbe
disclosed without thespecific permission oftheparty which hasprovided it.
28.1 Theinterested parties whoprovide confidential information mustsubmit anon-confidential
summary thereof, which permits areasonable understanding oftheinformation provided. Incases
where itisimpossible toprovide asummary, theparties shalljustify thisinwriting.
28.2 Should ithappen thattheinformation labelled confidential isnotjustified assuch, andifthe
provider oftheinformation isunwilling tomake itpublic initstotality orinsummary form, such
information cannot beconsidered, unless itisdemonstrated inaconvincing manner andfromreliable
sources thatsuchinformation iscorrect.
Art.29.Theindustrial users oftheproduct under investigation andrepresentatives ofconsumers
organizations, iftheproduct ishabitually soldontheretailmarket, shallhavetheopportunity toprovide
information which isrelevant totheinvestigation.
Art.30.Inthecourse oftheinvestigation, theaccuracy oftheinformation provided bytheinterested
parties willbeverified.
30.1 Should itbecome necessary andiffeasible, investigations maybecarried outintheterritory
ofother countries aslongasauthorization isgranted bythefirms involved, andtherepresentatives
ofthegovernment ofthecountry inquestion arenotified andthesehavenoobjection totheinvestigation.
Theprocedures described inArt.65shallapply toinvestigations undertaken intheterritory ofanother
country.
30.2 Ifitisnecessary andfeasible, investigations maybemade ininterested firms located inBrazil,
aslongastheyhavebeenpreviously authorized bysuchfirms.G/ADP/N/1/BRA/2
Page16
30.3 Subject totherequirement toprotect confidential information, theresults ofinvestigations
conducted pursuant tothepreceding paragraphs shallbeattached totheprocess.
Subsection II
Defence oftheInterests oftheParties
Art.31.Inthecourse oftheinvestigation, theinterested parties shallhavefullopportunity todefend
theirinterests. Tothisend,when requested, within thetimeperiod indicated inthedirective ordering
theinitiation oftheinvestigation, meetings shallbeheldwhere anopportunity shallbegiven tothe
interested parties tomeetwiththosewhohaveadverse interests, sothatopposing views maybepresented
andrebuttal arguments offered.
31.1 Thepartyrequestingthemeetingmustsubmit,togetherwiththeapplication,alistofthespecific
points tobeconsidered.
31.2 Theknown interested parties shallbenotified, withatleastthirty daysnotice, ofthemeeting
andthepoints tobeconsidered during themeeting.
31.3 There shallbenoobligation toattend ameeting andtheabsence ofanyparty shallnotbe
prejudicial toitsinterests.
31.4 Theinterested parties mustindicate theirlegalrepresentatives whoshallattend themeeting,
atleastfivedaysbefore themeeting, and,uptotendays prior tothemeeting, thearguments tobe
presented therein. Theinterested parties, ifdulyjustified, maypresent additional information orally.
31.5 Information thatispresented orally shallbeconsidered onlyifitisreproduced inwriting
andmade available totheother interested parties, within tendaysfollowing themeeting.
31.6 When suchisthecase,consideration shallbegiven totheneedforpreserving confidentiality
andtheconvenience oftheparties.
31.7 Theholding ofmeetings shall nothinder SECEX from reaching apreliminary orfinal
determination.
Art.32.Theinterested parties mayrequest, inwriting, toexamine theinformation contained inthe
process, which shallbepromptly made available totheparties whohavesorequested, withtheexception
ofconfidential information andinternal government documents. Anopportunity shallbegiven sothat
these parties maydefend theirinterests inwriting based onsuchinformation.
Subsection III
Final Procedures Concerning theConduction oftheInvestigation
Art.33.Before completing thefindings regarding thefinaldetermination, ameeting shallbecalled
bySECEX,whereintheinterestedpartiesshallbenotifiedregardingtheessentialfactsunderexamination
thatarethebasisofthefindings, andallowing theinterested parties aperiod of15daysfromthemeeting
tosubmit comments.
33.1 TheNational Confederation ofAgriculture (CNA), theNational Confederation ofIndustry
(CNI), theNational Trade Confederation (CNC) andtheBrazilian Exporters Association (AEB) shallG/ADP/N/1/BRA/2
Page17
alsobenotified regarding theessential factsunder examination thatform thebasis fortheSECEX
findings.
33.2 When theperiod provided forintheleadparagraph isover, theinvestigating process shall
beconsidered asclosed andinformation received latershallnotbeconsidered forpurposes ofthefinal
decision.
33.3 Theprovisions ofparagraphs 3,4,5and6ofArt.31alsoapply tothisarticle.
Section IV
Provisional Anti-dumping Measures
Art.34.Provisional anti-dumping measures maybeapplied onlyif:
I. aninvestigation hasbeeninitiated inaccordance with theprovision ofSection IIof
Chapter V,apublic notice ofthedecision toinitiate aninvestigation hasbeenpublished
andtheinterested parties havebeengiven adequate opportunity tosubmit information
andmake comments;
II. apreliminary affirmative determination hasbeenmade ofdumping andconsequent
injury toadomestic industry;
III. theauthorities citedinArt.2judge suchmeasures necessary toprevent injury being
caused during theinvestigation, and;
IV. atleastsixty dayshavepassed since thedateoftheinitiation oftheinvestigation.
34.1 Theamountoftheprovisionalanti-dumpingmeasuremaynot
exceed themargin ofdumping.
34.2 Provisional anti-dumping measures shalltaketheformofaprovisional dutyorsecurity, the
amount ofwhich shallbeequivalent tothatoftheanti-dumping dutythatisprovisionally established.
34.3 Inthecaseoftheprovisional duty, thisshallbecollected andinthecaseofthesecurity this
shallbepaidbymeans ofadeposit orbankbond, together withthetermofresponsibility.
34.4 Therequirement ofprovisional measures mayremain suspended untilthefinaldecision, as
longastheimporter offers anequivalent bond equal tothetotalamount oftheobligation.
34.5 Theinterested parties shallbenotified ofthedecision toimpose provisional anti-dumping
measures, theactthatcontains thedecision shallbepublished inthe“Diario Oficial ”.
34.6 TheFederal Revenue Secretariat shallmake provisions regarding theform forpayment of
thebond citedinparagraph 2.
34.7 Therelease bycustoms ofgoods subject toprovisional anti-dumping measures shalldepend
onpayment ofthedutyorofthebond.
34.8 Theprovisional anti-dumping measures shallremain ineffect foraperiod ofnotmore than
fourmonths, except incases where, bydecision oftheauthorities cited inart.2andbyrequest of
theexporters thatrepresent asignificant share ofthetradeinquestion, itmaybeextended tosixmonths.G/ADP/N/1/BRA/2
Page18
Theexporters desiring anextension oftheperiod ofimposition oftheprovisional anti-dumping measures
shallrequest suchinwriting, within thirty daysprior totheendoftheperiod thatthemeasure isin
effect.
34.9 Should itbedecided inthecourse oftheinvestigation thataprovisional anti-dumping measure
oflessthanthemargin ofdumping issufficient toeliminate theinjury, theperiods provided forin
thepreceding paragraph shallbeforsixandninemonths respectively.
Section V
Price Undertakings
Art.35.Proceedings oftheinvestigation andimposition ofprovisional ordefinitive anti-dumping
measures maybesuspended, iftheexporter voluntarily assumes satisfactory undertakings torevise
prices ortocease exports toBrazil atdumped prices, aslongastheauthorities cited inArt.2are
convinced thatsaidundertaking eliminates theinjury resulting from dumping.
35.1 Apriceincreasetofulfiltheseundertakingsshallnotbemorethanwhatisnecessarytoeliminate
themargin ofdumping, andmaybelimited towhatisnecessary toterminate theinjury being caused
tothedomestic industry.
35.2 Theexporters shall propose price undertakings oraccept those proposed bySECEX only
afterthere hasbeenapreliminary determination thatthere isacaseofdumping andtheinjury caused
byit.
35.3 Theexporters shallnotbeobliged topropose price undertakings norforced toaccept those
offered. These factsshallnotprejudice consideration ofthecasenoralterthepreliminary findings
which shallhavebeenconcluded.
35.4 SECEX hastherighttorefuse price undertaking offers ifsuchacceptance isconsidered to
beineffective.
35.5 Inthecaseofarefusal, andifitbepossible, reasons shallbegiven totheexporter explaining
whyacceptance oftheundertaking hasbeenjudged inappropriate, andtheexporter shallbegiven
theopportunity torespond.
Art.36.After aprice undertaking hasbeenaccepted theactcontaining thedecision toapprove such
undertaking shallbepublished inthe“Diario Oficial ”and,depending onthecase, shallcontain the
decision tocontinue ortosuspend theinvestigation, andtheinterested parties shallbenotified.
Soleparagraph. Theinvestigation ofdumping andinjury must continue iftheexporter so
desires, oriftheauthorities citedinArt.2sodecide.
Art.37.Theexporter withwhom aprice undertaking isagreed upon mustperiodically submit, ifso
requested, information relative tothefulfilment oftheundertaking andshallpermit verification ofany
relevant data.
Soleparagraph. Non-fulfilment oftheprovision ofthisarticle shallbeconsidered asaviolation
oftheundertaking.G/ADP/N/1/BRA/2
Page19
Art.38.Inthecaseofanundertaking violation, without continuing theinvestigation, steps maybe
taken forimmediate imposition bytheauthorities citedinart.2ofprovisional anti-dumping measures,
based onthebestinformation available, andtheinvestigation shallrecommence.
Soleparagraph. Theinterested parties shallbenotified concerning thetermination ofthe
undertaking andtheprovisional anti-dumping measures being imposed. Theactcontaining thisdecision
shallbepublished inthe“Diario Oficial ”.
Section VI
Conclusion oftheInvestigation
Art.39.Theinvestigations shall beconcluded within oneyearfrom theirinitiation, except under
exceptional circumstances when thetimeperiod maybeuptoeighteen months.
Art.40.Theapplicant may, atanytime, request thetermination oftheprocess. Ifapproved, the
investigation shallbeclosed. Should SECEX decide tocontinue theinvestigation, theapplicant shall
benotified inwriting.
Art.41.Theinvestigation shallbeterminated without imposition ofanti-dumping measures incases
where:
I. there hasnotbeensufficient evidence oftheexistence ofdumping orofanyresulting
injury;
II. themargin ofdumping isdeminimis ,according totheprovision ofparagraph 7of
Art.14;or
III. thevolume ofactual orpotential dumped imports, ortheinjury caused arenegligible,
according totheprovision ofparagraph 3ofArt.14.
Art.42.Theinvestigation shallbeclosed withtheimposition ofmeasures, when SECEX reaches a
finaldetermination ontheexistence ofdumping, ofinjury andofthecausal linkbetween them.
Soleparagraph. Theamount oftheanti-dumping dutyshallnotexceed themargin ofdumping.
Art.43.Inacasewhere aprice undertaking hasbeenaccepted, withsubsequent continuance ofthe
investigation:
I. ifSECEX arrives atanegative conclusion concerning dumping oranyresulting injury,
theinvestigation shallbeclosed andtheundertaking automatically terminated, except
when thenegative conclusion results, inlargepart,fromtheveryexistence oftheprice
undertaking, acasewhere itmayberequired tobemaintained forareasonable period
oftime, pursuant totheprovisions ofthisDecree;
II. iftheauthorities cited inart.2,based onfindings bySECEX, conclude thatthere
hasbeen dumping andresulting injury, theinvestigation shall beclosed andthe
imposition ofthedefinitive dutyshallbesuspended while theundertaking isineffect
under theterms tobeestablished andpursuant totheprovisions ofthisDecree;
43.1 Forthepurposes ofthisarticle, theprovision ofArt.37applies.G/ADP/N/1/BRA/2
Page20
43.2 Inthecaseofundertaking violation, steps maybetaken fortheimmediate imposition, by
theauthorities citedinArt.2,ofanti-dumping measures, based onthefindings oftheinvestigation.
43.3 Theinterested parties shallbenotified about thetermination oftheundertaking andabout
theanti-dumping dutyimposed. Theactcontaining thisdecision shallbepublished inthe“Diario
Oficial ”.
Art.44.Theactcontaining thedecision toendtheinvestigation incases provided forinthisSection
shallbepublished intheDiario Oficial. Interested parties shallalsobenotified.
SoleParagraph. Inthecaseofadecision toconclude theinvestigation withtheimposition
ofanti-dumping measures, theactthatcontains suchadecision mustname thesupplier orsuppliers
inquestion, withthemeasures corresponding toeach. Inthecaseofthenumber ofsuppliers being
especially high,thefindings shallcontain thename ofthesupplier countries involved, withtherespective
measures.
Chapter VI
IMPOSITION AND COLLECTION OFANTI-DUMPING MEASURES
Section I
Imposition
Art.45.Forthepurposes ofthisDecree, theexpression “anti-dumping duty”signifies anamount of
money equal toorlessthanthemargin ofdumping, calculated andimposed pursuant tothisarticle,
fortheexclusive purpose ofneutralizing theinjurious effects ofdumped imports.
45.1 Theanti-dumping measure shallbecalculated byimposing advalorem orspecific duties, either
fixed orvariable, oracombination ofboth.
45.2 Theadvalorem dutyshallbeimposed onthecustoms value ofthemerchandise, onaCIF
basis, judged interms oftherelevant legislation.
45.3 Thespecific dutyshallbesetinUnited States dollars andconverted toBrazilian currency,
under theterms oftherelevant legislation.
Art.46.Anti-dumping measures imposed onimports originating withknown exporters orproducers,
thathavenotbeenincluded intheselection treated inArt.13,butwhohavesubmitted theinformation
requested, maynotexceed theweighted average ofthemargin ofdumping established forthegroup
ofexporters orproducers selected.
46.1 Forpurposes ofthisarticle, zeroordeminimis margins shallnotbetaken intoaccount, nor
themargins established under circumstances asmentioned inparagraph 3ofArt.27.
46.2 Theauthoritiescitedinart.2shallimposeanindividuallycalculateddutyonimportsoriginating
fromanyexporter orproducer notincluded intheselection, whohassubmitted theinformation requested
inthecourse oftheinvestigation, asprovided forinparagraph 4ofArt.13.
Art.47Toimpose theprovision ofitemIIofart.17,anti-dumping measures shallbedueonlyon
theproducts inquestion thataredestined forfinalconsumption inthatmarket thathasbeenconsidered
adistinct domestic industry, forpurposes oftheinvestigation, pursuant totheterms ofparagraph 4
ofArt.17.G/ADP/N/1/BRA/2
Page21
Section II
Charges
Art.48.When ananti-dumping dutyisimposed onaproduct, thisshallbecollected independently
ofanyobligations ofafiscal nature relative toitsimportation, inamounts thatareadequate foreach
case, without discrimination, onallimports oftheproduct thathavebeenjudged asbeing made at
dumping prices andwhich areinjurious todomestic industry, whatever theirorigin.
Soleparagraph. Measures shallnotbecharged onthose imports proceeding from exporters
withwhom price undertakings havebeenagreed upon.
Section III
Products Subject toProvisional andDefinitive Anti-dumping Measures
Art.49.Except incases provided forinthisSection, provisional anti-dumping measures and
anti-dumping measures shall beimposed onlyonimported products thathave been shipped for
consumption afterthedateofthepublication ofthedirective thatcontains thedecisions citedinArts.
34and42.
Art.50.Ifthefinaldecision isthatdumping oritsresulting injury doesnotexist, theamount ofthe
provisional anti-dumping measures shallbereturned ifithasbeencollected, orifsecured byadeposit
itshallbereturned, orinthecaseofabankbond, thisshallbecancelled.
Art.51.Ifthefinaldecisionpointstotheexistenceofathreatofmaterialinjuryorsignificantretardation
inestablishing anindustry, without anymaterial injury having occurred, thevalue oftheprovisional
anti-dumping measures, iftheyhavebeencollected, shallbereturned, orifsecured byadeposit, this
shallbereturned, orinthecaseofabankbond thisshallbecancelled, unless itisverified thatthe
dumped imports, intheabsence ofprovisional anti-dumping measures, would haveledtotheverification
ofmaterial injury, inwhich casetheprovisions inthefollowing articles shallapply.
Art.52.Should thefinaldetermination point totheexistence ofdumping anditsresulting injury,
thefollowing shallbeobserved:
I. when theamount ofthedutyimposed bythefinaldetermination islessthantheamount
thathasbeenprovisionally collected orsecured byadeposit, theexcess amount shall
berespectively returned orreimbursed;
II. when theamount ofthedutyimposed bythefinaldecision ismore thantheamount
thathasbeen provisionally collected orsecured byadeposit, thepayment ofthe
difference shallnotberequired;
III. when theamount ofthedutyimposed bythefinaldecision isequal totheamount
thathasbeenprovisionally collected orsecured byadeposit, these amounts shallbe
automatically converted intoadefinitive duty.
Art.53.Inacasewhere thefinaldetermination isthatdumping andresulting injury doexist, andwhen
theamount ofthedutyimposed bythefinaldecision, inthecaseofaguarantee bybankbond, ismore
thanorequal totheamount thathasbeenprovisionally established, theamount corresponding tothe
secured amount willbecollected immediately. When thisamount islessthanthatoftheprovisional
measure, onlytheamount equivalent tothatestablished bythefinaldecision shallbecollected.G/ADP/N/1/BRA/2
Page22
Soleparagraph. Thecollection oftheamounts cited intheleadparagraph willcause the
consequent extinction ofthebankbond. Inacaseofnon-payment, thebankbondshallbeautomatically
executed,independentlyofanyjudicialorextra-judicialnotice,underthetermsoftherelevantlegislation.
Art.54.Definitive anti-dumping measures maybecharged ondumped imports which were entered
forconsumption uptoninety daysbefore theimposition oftheprovisional anti-dumping measures,
whenever itisfound that,withregard totheproduct inquestion:
I. thereisahistory ofdumping causing injury, orthattheimporter wasaware orshould
havebeenaware thattheproducer orexporter practices dumping andthatthiswould
cause injury; and
II. theinjury iscaused bymassive dumped imports ofaproduct inarelatively shorttime,
which, taking intoaccount theperiod oftimeinwhich theyoccur andthevolume of
thedumped imports andalsotherapid build-up ofinventories oftheimported product,
islikely toseriously undermine theremedial effect ofthedefinitive anti-dumping
measures, aslongastheimporters involved aregiven theopportunity tocomment;
Soleparagraph. Measures shall notbeimposed onproducts thathave been shipped for
consumption prior tothedateoftheinitiation oftheinvestigation.
Art.55.Inthecaseofapriceundertaking violation, definitive anti-dumping measures maybecharged
onimported products thathaveentered forconsumption, uptoninety daysprior totheimposition of
theprovisional anti-dumping measures, asseeninArt.38,excepting those thathadbeenshipped before
theundertaking violation.
Chapter VII
DURATION AND REViEW OFANTI-DUMPING MEASURES AND
PRICE UNDERTAKINGS
Art.56.Anti-dumping measures andprice undertakings shallonlyremain inforce aslongasthere
isaneedtocounteract dumping which causes injury.
Art.57.Every definitive anti-dumping dutyshall beterminated notlaterthanfiveyears afterits
imposition, orfiveyears from thedateoftheconclusion ofthemost recent review thatconcerned
dumping andinjury.
57.1 Thetimeperiod forimposition thatistreated intheleadparagraph ofthisarticle maybe
extended bymeans ofasubstantiated request submitted bythedomestic industry oronitsbehalf, by
agencies ororgans oftheFederal Public Administration, orbySECEX, aslongasithasbeen
demonstrated thattheexpiry ofthemeasures would verylikely leadtoacontinuation orrecurrence
ofdumping andinjury.
57.2 Theinterested parties shallhaveaperiod offivemonths prior totheendoftheenforcement
period treated intheleadparagraph inorder torespond inwriting concerning thesuitability ofareview
andtorequest ameeting ifnecessary.
57.3 Thereview shallproceed pursuant totheprovision inSection IIIofChapter Vandmustbe
concluded within twelve months from thedateofitsinitiation. Theactswhich contain thedecision
toinitiate andterminate areview shallbepublished inthe“Diario Oficial ”andtheinterested parties
shallbenotified.G/ADP/N/1/BRA/2
Page23
57.4 Themeasures shallremain ineffect throughout thereview.
57.5 Theprovision inthisarticle applies toprice undertakings accepted pursuant toArt.35.
Art.58There shallbeareview, inwhole orinpart,ofthedecisions regarding theimposition of
anti-dumping measures attherequest oftheinterested party orbyanorgan oragency oftheFederal
Public Administration, orSECEX, aslongasatleastoneyearhaspassed since theimposing ofthe
definitive anti-dumping measures andsufficient evidence ispresented showing that:
I. theimposition ofadutyhasceased tobenecessary toneutralize dumping;
II. itwould beimprobable thattheinjury would subsist orrecur ifthedutywererevoked
oraltered;
III. theactual dutyisnotorhasceased tobesufficient forneutralizing thedumping which
iscausing injury.
58.1 Inexceptional cases ofsubstantial changes ofcircumstance, orwhen inthenational interest,
reviews maybemade atashorter interval when requested bytheinterested party ororgans oragencies
oftheFederal Public Administration, orbytheinvestigating agency .
58.2Ifthere areelements thatjustify thereview, itshallbeinitiated andtheactcontaining the
findings shallbepublished inthe“Diario Oficial ”andtheinterested parties willbenotified.
58.3 Thereview mustbeconcluded within aperiod oftwelve months from itsinitiation andshall
adhere totheprovision inSection IIIofChapter V.
58.4 Aslongasthereview hasnotbeenconcluded, themeasures shallnotbealtered andshall
remain ineffect untiltheendofthereview.
58.5 Theauthorities citedinArt.2,basing themselves ontheresult andinconformity withthe
evidence gathered during thecourse ofthereview, mayeliminate, maintain oraltertheanti-dumping
duty. Should ithappen thatthedutyineffect ishigher thannecessary forneutralizing theinjury to
domestic industry andisnolonger justified, duerestitution shallbemade.
58.6 Theactthatcontains thedecision toterminate thereview shallbepublished inthe“Diario
Oficial ”andtheinterested parties willbenotified.
58.7 Theprovision ofthisarticle applies toprice undertakings accepted pursuant toArt.35.
Art.59When aproduct issubject toanti-dumping measures, animmediate summary review shall
beheld, ifsorequested, inorder toquickly determine theindividual margin ofdumping forany
exporters orproducers oftheexporting country inquestion, whohavenotexported theproduct to
Brazil inthecourse oftheinvestigation period, aslongastheseexporters orproducers candemonstrate
thattheyhavenorelationship withtheexporters orproducers oftheexporting country whoaresubject
toanti-dumping measures imposed ontheirproduct.
59.1 Duringthesummaryreview,anti-dumpingmeasuresshallnotbechargedonimportsoriginating
from theexporters orproducers citedintheleadparagraph ofthisarticle.
59.2 Once thereview hasstarted, SECEX shallnotify theFederal Revenue Secretariat sothat
itmaytakethenecessary steps, should acaseofdumping bedetermined, tocharge anti-dumpingG/ADP/N/1/BRA/2
Page24
measures onimports originating from theproducers orexporters inquestion, starting withthedate
onwhich thesummary review isinitiated.
Art.60.Anti-dumping measures maybesuspended foraperiod ofoneyear, which canbeextended
forafurther year, should provisional alterations occur inmarket conditions, andaslongastheinjury
doesnotrecur orsubsist invirtue ofthesuspension andthedomestic industry isconsulted.
Soleparagraph. Measures maybereimposed atanytimeifthesuspension isnolonger justified.
Chapter VIII
PUBLIC NOTICE AND EXPLANATION OFDETERMINATIONS
Art.61.Theactresulting fromthedecisions oftheauthorities citedinArt.2,andtheactbySECEX,
shallbepublishedinthe“DiarioOficial”andshallcontaindetailedinformationregardingtheconclusions
reached foreachissue offactandlawconsidered toberelevant.
Soleparagraph. Forthepurpose ofnotification, acopy ofthedirectives mentioned inthe
leadparagraph ofthisarticle shallbesenttothegovernment oftheexporting country orcountries
oftheproducts thathavebeenunder investigation andalsototheother interested parties.
Chapter IX
ANTI-DUMPING ACTIONS ONBEHALF OFATHIRD COUNTRY
Art.62Third countries mayapply fortheimposition ofanti-dumping measures through theirown
authorities.
62.1 Suchanapplication mustcontain priceinformation toshow thattheimports arebeing dumped
andtoshow thatthealleged dumping iscausing injury tothedomestic industry ofthatcountry.
62.2 Analysis oftheapplication shallconsider theeffects ofthealleged dumping ontheindustry
concerned asawhole inthethirdcountry. Theinjury shallnotbeassessed inrelation onlytothe
effect ofthealleged dumping ontheindustry ´sexports toBrazil, orevenonthetotalexports of
theproduct.
62.3 Inorder toinitiate aninvestigation, theBrazilian government shallrequest approval from
theCouncil forTrade inGoods oftheWorld Trade Organization.
Chapter X
THE FORM OFPROCEDURAL ACTS AND TERMS
Art.63.Procedural actsandterms donotdepend onanyspecial format, buttheinterested parties must
observetheinstructionsofthisDecreeandofSECEXwhenpreparingpetitionsanddocumentsingeneral;
otherwise theyshallnotbeappended totheprocess.
63.1 Observanceshallberequiredonlyofinstructionsthathavebecomepublicpriortothebeginning
oftheproceedings, orthatshallhavebeenspecified inthecommunication totheparty involved.G/ADP/N/1/BRA/2
Page25
63.2 Procedural actsandterms shallbewritten andthemeetings mustbeinthePortuguese language,
withdocuments written inanother language being submitted intranslations done byanofficial
translator.
63.3 Procedural actsarepublic andtherighttoconsult theofficial records andtorequest acertificate
regarding theprogress oftheinvestigation isrestricted totheparties andtheir legally appointed
representatives, pursuant totheprovision ofart.32regarding confidentiality oftheinformation and
ofinternal government documents.
63.4 Applications forthecertificate shall onlybeaccepted 30daysaftertheinitiation ofthe
investigation orfrom thesubmission ofthelastapplication foracertificate bythesame party.
Chapter XI
THE DECISION-MAKING PROCESS
Art64.Theactordecisions, either preliminary orfinal, relating totheinvestigation, shallbeadopted
pursuant toadirective from SECEX.
64.1 Within atwenty-day period fromthetimeitreceives thefindings fromtheSecretary ofForeign
Trade, SECEX shallpublish theactcontaining thedecision toinitiate aninvestigation, toextend the
timeofaninvestigation, tofiletheprocess attherequest oftheapplicant, toinitiate areview process
concerning definitive measures orpriceundertakings, ortoterminate theinvestigation without imposing
anymeasures.
64.2 WithintensdaysfromthedateofreceptionofthefindingsbytheMinisterofStateforIndustry,
Trade andTourism andtheMinister ofState forFinance, actsshallbepublished which contain the
decision toimpose provisional anti-dumping measures, extension ofthemeasures, acceptance ofthe
endofprice undertakings, termination oftheinvestigation withimposition ofmeasures, suspension
ofadefinitive duty, ortheresult ofthereview ofdefinitive measures orprice undertakings.
64.3 Under exceptional circumstances, evenwhen thereisevidence ofdumping andoftheresulting
injury, theauthorities citedinArt.2maydecide, forreasons ofnational interest, infavour ofsuspending
theimposition ofmeasures orforthenon-approval ofpriceundertakings, oreven, inaccordance with
theprovision ofthesoleparagraph ofArt.42,infavour oftheimposition ofmeasures atanamount
different thantheonerecommended and,insuchacase, theactshallcontain thereasons forsucha
decision.
TITLE II
SPECIAL PROCEDURES
Chapter I
ON-THE-SPOT INVESTIGATIONS
Art.65Upon initiation ofaninvestigation, theauthorities oftheexporting country andthefirms known
tobeconcerned should benotified oftheintention tocarry outon-the-spot investigations.
65.1 Inexceptional circumstances, when itisintended toinclude non-governmental experts inthe
investigating team, thefirms andtheauthorities oftheexporting country should besonotified, and
these experts shallbesubject tosanctions asprovided forinArt.325oftheBrazilian Penal Code,
inthecaseofbreach ofconfidentiality.G/ADP/N/1/BRA/2
Page26
65.2 Explicit agreement must bepreviously obtained from thefirms involved intheexporting
country, prior tosuchavisit.
65.3 When theapproval mentioned inthepreceding paragraph hasbeenreceived, theauthorities
oftheexporting country shallbeimmediately notified, bymeans ofa“noteverbale ”,ofthenames
andaddresses ofthefirms thataretobevisited, aswellasthedates scheduled forsuchvisits.
65.4 Sufficient advance notice shallbegiven tothefirms inquestion before thevisits aremade.
65.5 Visits toexplain thequestionnaire, which istreated intheleadparagraph ofArt.27,may
bemade onlyattherequest oftheproducer orexporting firm andmaytakeplace onlyifSECEX
notifies therepresentatives ofthecountry inquestion andthere isnoobjection tothevisit.
65.6 Thevisitshall bemade afterthequestionnaire hasbeenreturned, unless thefirmagrees
otherwise andthegovernment oftheexporting country isnotified oftheanticipated visitandhasno
objection.
65.7 Prior tothevisit, thefirms involved shallbenotified regarding thegeneral nature ofthe
information being sought, and,during thevisit, mayrequest supplementary clarifications duetothe
information received.
65.8 Replies torequests forinformation ortoquestions thatareputbyauthorities orfirms ofthe
exporting country, thatareessential toasuccessful on-the-spot investigation should, whenever possible,
beanswered before thevisitismade.
Chapter II
BEST INFORMATION AVAILABLE
Art.66.Assoonastheinvestigation isinitiated, theinformation required shallbespecified indetail
totheinterested parties andthemanner inwhich thatinformation should bestructured bytheinterested
party initsresponse, aswellasthetimeperiods forsubmitting it.
66.1 Theparty shallbeadvised thatiftheinformation isnotsubmitted within thespecified period
oftime, itwillimply thatdeterminations willbemade based onthefactsavailable, including those
contained intherequest forinitiating theinvestigation.
66.2 When thedeterminations aremade, verifiable information shallbetaken intoaccount that
hasbeenappropriately presented andwhich, therefore, maybeusedintheinvestigation without any
difficulty andwhich hasbeenpresented ingood time.
66.3 Should SECEX notaccept some information, thereason fortherefusal shallbecommunicated
immediately totheparty sothatthelatter mayprovide newexplanations within theestablished time
periods, respecting thetimelimits oftheinvestigation. Should theexplanations beunsatisfactory,
thereasons forrefusal mustappear inthepublished actsthatcontain anydecision ordetermination.
66.4 Should aninterested party notfurnish requested information orfurnish itonlypartially and
thisrelevant information isnotbrought totheattention oftheinvestigating authorities, theresult may
belessfavourable tothatparty thanifithadcooperated.G/ADP/N/1/BRA/2
Page27
66.5 Shouldinformationfromsecondarysourcesbeusedinelaboratingthedeterminations,including
thatsubmitted intheapplication, anattempt shallbemade tocompare theinformation withinformation
from independent sources orwiththose originating withother interested parties.
66.6 SECEX mayrequest thataninterested party submit itsreplies incomputer language.
66.7 Iftheinterested party doesnotusecomputerized accounting orifthesubmission ofthereply
inthismanner would mean anadditional burden withanunjustified increase incostsanddifficulties,
thatparty shallbedispensed from presenting itsreply pursuant totheprevious paragraph.
66.8 Whenever SECEX doesnothavethespecific means forprocessing theinformation, having
received itincomputer language incompatible withitsoperating system, theinformation must be
submitted intheform ofawritten document.
Chapter III
GENERAL PROVISIONS
Art.67.Thetimeperiods provided forinthisDecree shallbecounted continuously.
Art.68.Thetimeperiods inthisDecree maybeextended onceandforanequal period oftime, except
those forwhich extension isalready provided for.
Art.69.Actspractised contrary totheprovisions ofthisDecree shallbeconsidered nullandvoidunder
thelaw.
Art.70.Theprocedures established bythisDecree shallnotimpede thecompetent authorities from
acting promptly regarding anydecisions ordeterminations, norshalltheyhinder theprocedures of
customs clearance.
Art.71.Forthepurposes ofthisDecree, theterm“industry ”alsoincludes activities connected with
agriculture.
Art.72.TheMinister ofStateforIndustry, Trade andTourism andtheMinister ofStateforFinance
shallpasscomplementary norms forexecuting thisDecree.
Art.73.ThisDecree takes effect onthedateofitspublication.
Brasília, 23August 1995; 174th yearofIndependence and107th yearoftheRepublic.
FERNANDO HENRIQUE CARDOSO
LuizFelipe Lampreia
Pedro Malan
Dorothea Werneck
JoséEduardo deAndrade Vieira
JoséSerra