RESTRICTED
WORLD TRADE G/ADP/Q1/BRA/1
G/SCM/Q1/BRA/1
ORGANIZATION 18March 1997
(97-1082)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofBRAZIL1
toquestions posed byCHILE2,KOREA3andVENEZUELA4
Thefollowing communication, dated 9March 1997, hasbeenreceived from thePermanent
Mission oftheBrazil.
________________
Questions fromChile
(a) When theconstructed costcriterion isused ininvestigations under Article 2.2.2 ofthe
Anti-Dumping Code, whatmethodologies areusedtodetermine theexporter 'sprofit margin?
(b) What criteria areusedtointerpret under Article 2.2oftheAnti-Dumping Code theconcept
of"particular market situation" inorder todisregard thedomestic market priceintheexporting country
asthenormal value?
(c) What aretheprocedures usedinthecaseofanaccelerated investigation inaccordance with
Article 9.4oftheAnti-Dumping Code? Howaresuitable transparency andnotification oftheparties
ensured?
(d) Howarethepossible interested parties inaninvestigation defined, andwhatarethecriteria
forconsidering themassuchinaccordance withArticle 6.1oftheAnti-Dumping Code? Areconsumers
considered asoneofthem?
(e) Withreference toArticle 5.3oftheAnti-Dumping Code, isalltheevidence provided bythe
complainant verified before initiating aninvestigation? What arethecriteria fordetermining whether
there issufficient evidence forinitiation? Isthere some definite period between thesubmission ofthe
complaint andtheformal initiation oftheinvestigation? What isthemethodology usedtomeasure
therepresentativeness ofthecomplainant inthedomestic industry?
1G/ADP/N/1/BRA/1-G/SCM/N/1/BRA/1 +Suppl.1.
2G/ADP/W/126-G/SCM/W/135
3G/ADP/W/129-G/SCM/W/138
4G/ADP/W/150-G/SCM/W/157G/ADP/Q1/BRA/1
G/SCM/Q1/BRA/1
Page2
(f) Undertheanti-dumpinglegislationandininvestigations,cantheinvestigatingauthoritycumulate
imports fromtheorigins under investigation?
Answer toquestions (a)through (f)
Provisional Measure 926/95, object ofBrazilian notification totheCommittees hasbeen
republished asLawNo.9019, dated 30March 1995, without anymodification toitscontent. This
Lawestablished thejuridical nature oftheanti-dumping duties andofthecountervailing measures,
eliminating linkswiththeimport tax,anddefined theauthorities thatarecompetent toconduct anti-
dumping andsubsidies investigations, aswellasfortheapplication ofmeasures andexcising ofduties.
Having beenincorporated intotheBrazilian legalsystem bymeans ofaPresidential Decree
(Decree No.1355, dated 30December 1994), theWTO Agreements havethesame hierarchical level
aslaws, andaresubordinate onlytotheFederal Constitution. TheDecree No.1355/94 promulgated
theLegislative Decree No.30/94, dated 15December 1994, which approved theWTO Agreements.
Assuch, ithasadistinct character fromothersubsequent legalinstruments (decrees, ministerial orders),
having precedence overthem.
Theincorporation totheBrazilian legislation oftheAgreement onImplementation ofArticle VI
ofGATT 1994 andtheAgreement onSubsidies andCountervailing Measures, which resulted from
theUruguay Round, wasmade through Decree No.1355/94. Inwhat concerns theregulation
("implementing legislation") ofbothAgreements, ithasbeenmade through Decree No.1602, dated
23August 1995, relative toanti-dumping measures, andDecree No.1751, dated 19December 1995,
relative tocountervailing measures. Bothregulations willbenotified tothepertinent Committees as
soonastheyaretranslated intooneoftheofficial WTO languages.
Since thequestions presented bythePermanent Mission ofChile refertomatters ofprocedure,
methodology andtransparency linked tothenewagreements, Brazil believes thatthediscussion of
suchtopics willbemore fruitful ontheoccasion ofthereview ofthenewBrazilian regulation.
Questions fromKorea
1. General questions
(1) Incases where there arenorelevant provisions inthedomestic legislation, doesthe
WTO Agreement apply?
(2) Iftheprovisions oftheexisting domestic legislation donotconform totheWTO
Agreement, dotheprovisions oftheWTO Agreement apply?
Answer togeneral questions 1and2
Provisional Measure No.926/95, object ofBrazilian notification totheCommittees hasbeen
republished asLawNo.9019, dated 30March 1995, without anymodification toitscontent. This
Lawestablished thejuridical nature oftheanti-dumping duties andofthecountervailing measures,
eliminating linkswiththeimport tax,anddefined theauthorities thatarecompetent toconduct anti-
dumping andsubsidies investigations, aswellasfortheapplication ofmeasures andexcising ofduties.
Having beenincorporated intotheBrazilian legalsystem bymeans ofaPresidential Decree
(Decree No.1355, dated 30December 1994), theWTO Agreements havethesame hierarchical levelG/ADP/Q1/BRA/1
G/SCM/Q1/BRA/1
Page3
aslaws, andaresubordinate onlytotheFederal Constitution. TheDecree No.1355/94 promulgated
theLegislative Decree No.30/94, dated 15December 1994, which approved theWTO Agreements.
Assuch, ithasadistinct character fromothersubsequent legalinstruments (decrees, ministerial orders),
having precedence overthem.
Theincorporation totheBrazilian legislation oftheAgreement onImplementation ofArticle VI
ofGATT 1994 andtheAgreement onSubsidies andCountervailing Measures, which resulted from
theUruguay Round, wasmade through Decree No.1355/94. Inwhat concerns theregulation
("implementing legislation") ofbothAgreements, ithasbeenmade through Decree No.1602, dated
23August 1995, relative toanti-dumping measures, andDecree No.1751, dated 19December 1995,
relative tocountervailing measures. Bothregulations willbenotified tothepertinent Committees as
soonastheyaretranslated intooneoftheofficial WTO languages.
Thus, theprovisions oftheAgreements apply toallinvestigations, orreviews, initiated asper
petitions presented asfrom 31December 1994, dateofentry intoforce ofDecree No.1.355/94.
Q2. Provisional measures
Itisstipulated inArticle 7.2oftheWTO Agreement thatprovisional measures maytakethe
formofaprovisional dutyor,preferably, asecurity -bycashdeposit orbond -equal totheamount
oftheanti-dumping dutyprovisionally estimated, being notgreater thantheprovisionally estimated
margin ofdumping.
TheAgreement alsostipulates inArticle 7.3thatprovisional measures shall notbeapplied
sooner than60daysfromthedateofinitiation oftheinvestigation.
Does Brazil haveanyprovisions stipulating theconstraints prescribed intheAgreement?
A2. Asitwasmentioned above, theWTO Agreements wereincorporated intoBrazilian legislation,
bymeans ofDecree No.1.355/94. Asamatter offact,theDecree isaPortuguese translation ofthose
Agreements. Therefore, allprovisions pertaining toprovisional measures arecontained bothinDecree
No.1.355/94 andtherelevant regulation, mentioned intheprevious answer, which isbased uponthat
Decree.
Q3. Undertaking
Itisstipulated inArticle 4oftheProvisional Measure No.926thatanundertaking toeliminate
theinjury effect ofdumping orsubsidies maybeentered intowiththeexporter orwiththegovernment
oftheexporter 'scountry.
What isthecontent oftheundertaking?
A3. Provisional Measure No.926/95, object ofBrazilian notification totheCommittees hasbeen
republished asLawNo.9019, dated 30March 1995, without anymodification toitscontent. This
Lawestablished thejuridical nature oftheanti-dumping duties andofthecountervailing measures,
eliminating linkswiththeimport tax,anddefined theauthorities thatarecompetent toconduct anti-
dumping andsubsidies investigations, aswellasfortheapplication ofmeasures andexcising ofduties.
AlthoughProvisionalMeasureNo.926/95,republishedasLawNo.9019,dated30March1995,
refers toengagements, thedefinition ofsuchmeasures aswellastheconditions fortheiradoption are
stipulated bothinDecree No.1.355/94 andintheregulation oftheAgreements (Decree No.1602,G/ADP/Q1/BRA/1
G/SCM/Q1/BRA/1
Page4
dated 23August 1995, relative toanti-dumping measures, andDecree 1751, dated 19December 1995,
relative tocountervailing measures). Therefore, Brazil believes thatquestions pertaining tothistopic
maybeclarified ontheoccasion ofthereview ofthenewlegislation.
Q4. Thenotified Regulations donotcontain enough information about theanti-dumping system
ofBrazil. Please provide uswiththefulltextofDecree No.1355of30December 1994forourfurther
understanding.
A4. Asitwasmentioned above, Decree No.1.355/94 isaPortuguese translation oftheWTO
Agreements.
Q5. TheGovernmentofBrazilisdraftingnewregulationstoavoidtheeffectsofunfairtradepractices,
inaccordance withtheprovision oftheAnti-Dumping Agreement. What istheschedule forrevision
oftheexisting regulations? The"draft law"referred toonthefirstpage ofthenotification should
bemade available inorder topermit anassessment.
A5. Thenewregulation isalready inforce (Decree No.1602, dated 23August 1995, relative to
anti-dumpingmeasures,andDecree1751,dated19December1995,relativetocountervailingmeasures).
Bothregulations willbenotified tothepertinent Committees assoonastheyaretranslated intoone
oftheofficial WTO languages.
Questions ofVenezuela
Q1. Order ofprecedence
Please indicate thepurpose ofeachofthetextsnotified totheCommittee (Decree No.1355,
Provisional Measure No.926,future Regulation) andtheirorder ofprecedence.
A1. Having beenincorporated intotheBrazilian legalsystem bymeans ofaPresidential Decree
(Decree No.1355, dated 30December 1994), theWTO Agreements havethesame hierarchical level
aslaws, andaresubordinate onlytotheFederal Constitution. TheDecree No.1355/94 promulgated
theLegislative Decree No.30/94, dated 15December 1994, which approved theWTO Agreements.
Assuch, ithasadistinct character fromothersubsequent legalinstruments (decrees, ministerial orders),
having precedence overthem.
Provisional Measure No.926/95, wasrepublished asLawNo.9019, dated 30March 1995,
without anymodification toitscontent. ThisLawestablished thejuridical nature oftheanti-dumping
duties andofthecountervailing measures, eliminating links withtheimport tax,anddefined the
authorities thatarecompetent toconduct anti-dumping andsubsidies investigations, aswellasforthe
application ofmeasures andreceipt ofduties. LawNo.9019/95 makes reference totheTokyo Round
codes, using theDecrees which incorporated them totheBrazilian legislation, withtheobjective of
defining thenature ofthemeasures (duties ortaxes) andthecompetent authorities. Itshould bestressed
thattheTokyo Round codes, which werenotified totherespective committees, willremain inforce
during thetransition period, andwillbeapplied onlytoactions relative tocountervailing measures
(investigations orrevisions) initiated before 31December 1994.
Inwhatconcerns thenewregulations, which arealready ineffect through Decree No.1602,
dated 23August 1995, relative toanti-dumping measures, andDecree 1751, dated 19December 1995,
relative tocountervailing measures, theyestablish procedures fortheapplication ofanti-dumping andG/ADP/Q1/BRA/1
G/SCM/Q1/BRA/1
Page5
countervailing measures andhaveasabasis Decree No.1355/95 andLawNo.9019/95, which take
precedence overtheabove mentioned twodecrees.
Q2. Implementation oftheAgreements
Isitintended tointroduce newinstruments toimplement alltheobligations entered intounder
theWTO Anti-Dumping andSubsidies Agreements?
A2. Yes. Asmentioned above, theincorporation totheBrazilian legislation oftheAgreement on
Implementation ofArticle VIofGATT 1994 andtheAgreement onSubsidies andCountervailing
Measures which resulted fromtheUruguay Round, wasmade through Decree No.1355/94. Inwhat
concerns theregulation ("implementing legislation") ofbothAgreements, ithasbeenmade through
Decree No.1602, dated 23August 1995, relative toanti-dumping measures, andDecree No.1751,
dated 19December 1995, relative tocountervailing measures. Bothregulations willbenotified to
thepertinent Committees assoonastheyaretranslated intooneoftheofficial WTO languages.
Q3. Regulation onAnti-Dumping andCountervailing Measures
Could theGovernment ofBrazil indicate when itwillbeabletonotify totheCommittee the
newRegulation onmeasures toavoid theeffects ofunfair trade practices?
A3. Seeanswer toquestion 2above.
4. Judicial review
Thenotified legislation does notinclude specific provisions onjudicial review offinal
determinations. Intheabsence ofanyexpress provisions, howwillBrazil ensure fulfilment ofthe
obligations setoutinArticles 13oftheAnti-Dumping Agreement and23oftheAgreement onSubsidies?
Please describe theprocedures toobtain judicial review foreachtypeofdecision, provisional and
definitive.
A4. Anyinterested party canhaverecourse totheBrazilian judiciary system inwhatconcerns the
application ofspecific provisions ofthelegalinstruments, forthisreason noprovisions pertaining to
thistopic were made intheregulation oftheAgreements. Theprocedures forobtention ofjudicial
review areidentical tothose setoutforthepresentation ofanyappeal tothejudiciary system.