WORLD TRADE G/ADP/N/1/PRY/2
G/SCM/N/1/PRY/2
3March 1997
ORGANIZATION(97-0870)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
PARAGUAY
Thefollowing communication, dated 21February 1997, hasbeenreceived fromthePermanent
Mission ofParaguay.
_______________
Ihave thehonour tosubmit herewith acopy ofDecree No.15.286 of28October 1996
designatingtheMinistryofIndustryandTradeandtheMinistryofFinancetoimplementLawNo.444/94
concerning theAgreement onImplementation ofArticle VIoftheGeneral Agreement onTariffs and
Trade 1994 andtheAgreement onSubsidies andCountervailing Measures, andlaying down the
applicable procedures.G/ADP/N/1/PRY/2
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Decree No.15.286
Designating theMinistry ofIndustry andTrade andtheMinistry ofFinance toImplement
LawNo.444/94 Concerning theAgreement onImplementation ofArticle VI
oftheGeneral Agreement onTariffs andTrade 1994 andthe
Agreement onSubsidies andCountervailing Measures,
andLaying Down theApplicable Procedures
Asunción, 28October 1996
No.237
Having regard toLawNo.260/93 Approving theProtocol ofAccession oftheRepublic of
ParaguaytotheGeneralAgreementonTariffsandTrade,signedinGeneva,Switzerland,on1July1993;
and
LawNo.444/94 ratifying theFinal ActoftheUruguay Round oftheGeneral Agreement on
Tariffs andTrade, bywhich theprovisions oftheAgreement onImplementation ofArticle VIof
GATT1994,theAgreementonSubsidiesandCountervailingMeasuresandtheAgreementonSafeguards
areadopted,
Whereas itisnecessary toimplement thesaidAgreements andensure thattheyareeffectively
fulfilled, anddesignate theagency responsible fortheirapplication,
THE PRESIDENT OFTHE REPUBLIC OFPARAGUAY
HEREBY DECREES:
Chapter I
General Provisions
Article 1-Purpose
1.1 Thepurpose ofthese provisions istoestablish rulesandprocedures applicable todumped or
subsidized imports where suchpractices cause orthreaten tocause injury toadomestic industry or
material retardation oftheestablishment thereof.
Article 2-Definitions
2.1 Forthepurposes ofthisprovision:
Thetermdomestic industry shallbetaken tomean thedomestic producers asawhole ofthe
likeproducts orthose ofthem whose collective output oftheproducts constitutes amajor proportion
ofthetotaldomestic production ofthose products, except that:
(a) When domestic producers arerelated totheexporters orimporters orarethemselves
importers oftheproduct inquestion, theterm"domestic industry" maybeinterpreted
asreferring totherestoftheproducers;G/ADP/N/1/PRY/2
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(b) inexceptional circumstances theterritory ofParaguay may, fortheproduction in
question, bedivided intotwoormore competitive markets andtheproducers within
eachmarket mayberegarded asaseparate industry if(1)theproducers within such
markets sellalloralmost alloftheirproduction oftheproduct inquestion inthat
market, and(2)thedemand inthatmarket isnottoanysubstantial degree supplied
byproducers oftheproduct inquestion located elsewhere intheterritory. Insuch
circumstances, injury maybefound toexistevenwhere amajor portion ofthetotal
domestic industry isnotinjured, provided there isaconcentration ofimports ofthe
product inquestion intosuchanisolated market andprovided further thatthesaid
imports arecausing injury totheproducers ofalloralmost alloftheproduction within
suchmarkets.
Thetermlikeproduct shallbetaken tomean aproduct which isidentical, i.e.,alike inall
respects totheproduct under consideration, orintheabsence ofsuchaproduct, another product which,
although notalikeinallrespects, hasverysimilar characteristics.
Theterminjury shallbetaken tomean material injury toadomestic industry, threat ofmaterial
injury toadomestic industry ormaterial retardation oftheestablishment ofsuchanindustry.
Theterminterested party shallbetaken tomean thecomplainant, exporters, foreign producers,
importers oftheproduct under investigation, tradeorbusiness chambers orassociations ofproducers,
ofexporters andimporters andofconsumers, thegovernment oftheexporting country, domestic
producers ofthelikeproduct orthetrade orbusiness chambers orassociations ofwhich domestic
producers aremembers, aswellaschambers andtrade associations ofusers andconsumers, andany
other party recognized assuchunder international treaties oragreements orwhich show alegitimate
interest.
Related parties: producers shall bedeemed toberelated toexporters orimporters inthe
following cases: (a)ifoneofthem directly orindirectly controls theother; (b)ifbothofthem are
directly orindirectly controlled byathirdperson; or(c)iftogether theydirectly orindirectly control
athird person, provided thatthere aregrounds forbelieving orsuspecting thattheeffect ofthe
relationship issuchastocause theproducer concerned tobehave differently fromnon-related producers.
Oneshallbedeemed tocontrol another when theformer islegally oroperationally inaposition to
exercise restraint ordirection overthelatter.
Chapter II
Institutional Framework
Article 3-Competent authorities
3.1 TheMinistry ofIndustry andTrade andtheMinistry ofFinance aredesignated astheagencies
responsible fortheapplication oftheprovisional measures, countervailing measures andanti-dumping
duties provided forinthisDecree.
3.2 TheMinister ofIndustry andTrade andtheMinister ofFinance shallberesponsible fordeciding
theprovisional ordefinitive imposition ofanti-dumping orcountervailing duties inconformity with
theconclusions oftheCommission.G/ADP/N/1/PRY/2
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3.3 TheMinistryofIndustryandTradeshallberesponsibleforconductinginvestigationsandcarrying
outadministrative procedures inaccordance withtheprovisions ofthisDecree andthepowers conferred
onthem therein.
3.4 There shall beestablished aTrade Defence Commission, hereinafter referred toasthe
Commission, withresponsibility forissuing recommendations ontheadministrative procedures applied
andtheappropriate measures tobetaken.
3.5 TheCommission shallcomprise aregular representative andanalternate fromthefollowing
Ministries: Industry andTrade, Finance, Agriculture andLivestock, Foreign Relations, andIntegration.
3.6 TheCommission shallbechaired bytherepresentative oftheMinistry ofIndustry andTrade.
3.7 Theheads oftheinstitutions mentioned intheprevious paragraph shallberesponsible forthe
direct appointment ofarepresentative totheCommission. Appointments shall bemade within
twomonths following theentry intoforce ofthisDecree.
3.8 Within threemonths following theentry intoforce ofthisDecree, theCommission shalladopt
theinternal regulations, theHandbook establishing therequirements andthedocumentation thatthe
application fortheinitiation oftheinvestigation must contain, andtheforms and/or questionnaires
tobecompleted bytheinterested parties.
Chapter III
Unfair Trading Practices
Article 4-Determination ofdumping
4.1 Forthepurpose ofthisDecree, aproduct istobeconsidered asbeing dumped, i.e.introduced
intothenational market atlessthanitsnormal value, iftheexport price oftheproduct exported to
thenational market islessthanthecomparable price, intheordinary course oftrade, forthelikeproduct
when destined forconsumption intheexporting country.
4.2 When there arenosales ofthelikeproduct intheordinary course oftrade inthedomestic
market ofthecountry oforigin ortheexporting country orwhen, because oftheparticular market
situation orthelowvolume ofsalesinthemarket ofthecountry oforigin ortheexporting country,
suchsales donotpermit aproper price comparison, theMinistry ofIndustry andCommerce shall
determine thenormal value bycomparison with:
- Thecomparable priceofalikeproduct when exported toathirdcountry intheordinary
course oftrade;
- thecostofproduction inthecountry oforigin plusareasonable amount for
administrative, selling andgeneral costsandforprofits, inaccordance withArticle 2.2
oftheAgreement onImplementation ofArticle VIoftheGeneral Agreement onTariffs
andTrade 1994.
4.3 Sales ofthelikeproduct destined forconsumption inthedomestic market oftheexporting
country shallbeconsidered asufficient quantity forthedetermination ofthenormal value ifsuchsales
constitute 5percentormore ofthesalesoftheproduct under consideration totheimporting country,G/ADP/N/1/PRY/2
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except where theMinistry ofIndustry andTrade deems thattheevidence demonstrates thatdomestic
salesatsuchlower ratioarenonetheless ofsufficient magnitude toprovide foraproper comparison.
4.4 Sales ofthelikeproduct inthedomestic market oftheexporting country orsalestoathird
country atprices below perunit(fixed andvariable) costs ofproduction plusadministrative, selling
andgeneral costs maybetreated asnotbeing intheordinary course oftrade byreason ofprice and
maybedisregarded indetermining normal value onlyiftheauthorities determine thatsuchsalesare
made (1)within aperiod normally oneyearbutinnocaselessthansixmonths; (2)insignificant
quantities, i.e.representing atleast20percentofsales intransactions under consideration forthe
determination ofthenormal value; and(3)atprices which donotprovide fortherecovery ofallcosts
within areasonable period oftime. Ifprices which arebelow perunitcosts atthetimeofsaleare
above weighted average perunitcostfortheperiod ofinvestigation, suchprices shallbeconsidered
toprovide forrecovery ofcosts within areasonable period oftime.
4.5 Theexport priceshallbetaken tomean thepriceactually paidorpayable fortheproduct sold
forexport tothenational market. Incases where there isnoexport price orwhere suchprice is
unreliable because ofalinkorassociation between theexporter andtheimporter, theexport pricemay
beconstructed onthebasisofthepriceatwhich theimported products arefirstresold toanindependent
buyer. Iftheproducts arenotresold toanindependent buyer, ornotresold inthecondition asimported,
theprice shallbecalculated onsuchreasonable basis astheMinistry ofIndustry andCommerce may
determine.
4.6 Thecomparison between theexport price andthenormal value shallbemade fairly andat
thesame leveloftrade, normally attheex-factory level, andinrespect ofsalesmade atasnearly as
possible thesame time. Thiscomparison shallnormally bemade onthebasisofacomparison ofthe
weighted average normal value withaweighted average ofprices ofallcomparable export transactions
orbyacomparison ofnormal value andexport prices onatransaction-to-transaction basis. Ifthe
Ministry ofIndustry andTrade deems thatthere isapattern ofexport prices andnormal value which
differs significantly among different purchasers, regions ortime-periods, thecomparison canbemade
between thenormal value established onaweighted average basis andtheprices ofindividual export
transactions.
4.7 Theprice comparison shallmake dueallowance ineachcase, onitsmerits, fordifferences
which affect price comparability, suchasdifferences inconditions andterms ofsale,taxation, levels
oftrade, quantities, physical characteristics, andanyother differences which arealsodemonstrated
toaffect price comparability. Incases which require construction oftheexport price inaccordance
withArticle 4.5,allowances forcosts, including duties andtaxes, incurred between importation and
resale, andforprofits accruing, should alsobemade.
4.8 Where products arenotimported directly fromthecountry oforigin butfromanintermediate
country, theprice atwhich theproducts aresoldfrom thecountry ofexport toParaguay shallbe
compared, asarule,withthecomparable price inthecountry ofexport. However, comparison may
bemade withtheprice inthecountry oforigin, if,forexample, theproducts aremerely transhipped
through thecountry ofexport, orsuchproducts arenotproduced inthecountry ofexport, orthere
isnocomparable price forthem inthecountry ofexport.
4.9 Inthecaseofimports originating incentrally-planned economies, thenormal value ofalike
product shallbedetermined onthebasis ofthesalesvalue fordomestic consumption, intheordinary
course oftrade, ofalikeproduct toathirdcountry withamarket economy, orfailing this,ofitsexport,
oronthebasis ofsuchother criterion astheMinistry ofIndustry andTrade considers relevant totheG/ADP/N/1/PRY/2
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circumstances. However, theselection ofthecountry mustnotopenly result indisadvantages forthe
producer orexporter ofthecountry oforigin.
4.10 TheamountbywhichtheexportpriceislowerthanthenormalvalueinaccordancewithArticle8
shallbeconsidered themargin ofdumping. Themargin ofdumping shallbeconsidered tobedeminimis
ifitislessthan2percentoftheexport price.
Article 5-Subsidies
5.1 Imports shall beconsidered tohave been subsidized if,with respect totheproduction,
manufacture, transport orexport ofthegoods imported, oroftheirrawmaterials andinputs:
(a)(i) There isafinancial contribution byagovernment oranypublic body inthecountry
oforigin orthecountry ofexport involving adirect transfer offunds orpotential direct
transfers orfunds orliabilities; government revenue thatisotherwise dueisforgone
ornotcollected; agovernment provides goods orservices other thangeneral
infrastructure, orpurchases goods; agovernment makes payments toafunding
mechanism, orentrusts ordirects aprivate bodytocarry outoneormore ofthetype
offunctions illustrated above which would normally bevested inthegovernment;
(a)(ii) thereisanyformofincome orpricesupport inthesense ofArticle XVIofGATT 1994;
and
(b) abenefit isthereby conferred.
5.2 Imports thataresubsidized within themeaning ofthisArticle maybesubject tocountervailing
duties onlyifsuchsubsidy isspecific inaccordance withprovisions ofArticle 2oftheAgreement
onSubsidies andCountervailing Measures ofGATT 1994.
5.3 Theamount ofthesubsidy shallbecalculated inmonetary units oradvalorem percentages
perunitofthesubsidized product imported intothenational territory.
5.4 Theamount ofthesubsidy shallbeconsidered tobedeminimis ifthesubsidy islessthan1per
centadvalorem .
Article 6-Determination ofinjury
6.1 Adetermination ofinjury, threat ofinjury ormaterial retardation ofthedomestic industry shall
bebased onpositive evidence andinvolve anobjective examination ofboth:
(a) Thevolume ofthedumped orsubsidized imports andtheirimpact onprices inthe
domestic market forlikeproducts; and
(b) theconsequent impact ofthese imports ondomestic producers oflikeproducts.
6.2 Withregard toArticle 6.1(a),theinvestigating authorities shalldetermine whether there has
beenasignificant increase ofimports, either inabsolute terms orrelative toproduction orconsumption
inthecountry. Inorder todetermine theeffect ofsuchanincrease ontheprices oflikeproducts in
thedomestic market, theinvestigation authorities willalsohavetodetermine whether thesalesprice
oftheimports inquestion issignificantly lower andwhether theeffect ofsuchimports isotherwiseG/ADP/N/1/PRY/2
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todepress prices toasignificant degree orprevent price increases, which otherwise would occur, to
asignificant degree.
6.3 Thevolume ofdumped orsubsidized imports shallberegarded asnegligible ifthevolume
ofdumped orsubsidized imports fromaparticular country isfound toaccount forlessthan3percent
ofimports ofthelikeproduct, unless countries which individually account forlessthan3percent
oftheimports ofthelikeproduct collectively account formore than7percentofimports ofthelike
product.
6.4 Inorder todetermine theeffect ofdumped orsubsidized imports onthedomestic industry,
anevaluation shallbemade ofallrelevant economic factors andindices having abearing onthestate
oftheindustry, suchas:actual andpotential decline insale,profits, output, market share, productivity,
return oninvestments, orutilization ofcapacity. Anexamination shallalsobemade ofthefactors
affecting domestic prices; themagnitude ofthemargin ofdumping ortheamount ofthesubsidy;
actual orpotential negative effects oncashflow, inventories, employment, wages, growth, ability to
raisecapital orinvestments. Thislistisnotexhaustive, norcanoneorseveral ofthesefactors necessarily
suffice tojustify adecision.
6.5 Adeterminationofathreatofmaterialinjuryshallbebasedonfactsandnotmerelyonallegation,
conjecture orremote possibility, andshould involve theconsideration ofthefollowing factors:
(a) Asignificant rateofincrease ofdumped orsubsidized imports intothedomestic market
indicating thelikelihood ofsubstantially increased importation;
(b) sufficient freely disposable, oranimminent, substantial increase in,capacity ofthe
exporter indicating thelikelihood ofsubstantially increased exports, taking intoaccount
theavailability ofother export markets toabsorb anyincrease;
(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.
Nooneofthesefactors byitselfcannecessarily justify adecision, butthetotality ofthefactors
considered must leadtotheconclusion thatfurther dumped orsubsidized exports areimminent and
that,unless protective action istaken, material injury would occur.
6.6 Theeffect ofthedumped orsubsidized imports shall beassessed inrelation todomestic
production ofthelikeproduct when available datapermit theseparate identification ofthatproduction
onthebasisofsuchcriteria astheproduction process, producers 'salesandtheirprofit. Ifsuchseparate
identification ofthatproduction isnotpossible, theeffects ofthedumped orsubsidized imports shall
beassessed bytheexamination oftheproduction ofthenarrowest group orrange ofproducts, which
includes thelikeproduct, forwhich thenecessary information canbeprovided.
Article 7-Causal link
7.1 Itmust bedemonstrated thatthedumped orsubsidized imports are,through theeffects of
dumping orsubsidization, assetforthinthepreceding paragraph, causing injury within themeaning
ofthisDecree. Thedemonstration ofacausal relationship between thedumped orsubsidized importsG/ADP/N/1/PRY/2
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andtheinjury tothedomestic injury shallbebased onanexamination ofalltherelevant evidence
available.
7.2 Ifthere areother factors, suchasthevolume andprices ofimports notsoldatdumping or
subsidized prices, contraction indemand orchanges inthepatterns ofconsumption, trade restrictive
practices, developments intechnology, andothers, which areinjuring thedomestic industry, suchinjury
must notbeattributed todumped orsubsidized imports.
7.3 Thevolume andeffects ofimports from ororiginating inmore thanonecountry under
investigationmaybeconsideredcumulativelywithaviewtoassessingtheinjurytothedomesticindustry,
provided themargin ofdumping andtheamount ofthesubsidy arenotdeminimis andthevolume
ofimports isnotnegligible inaccordance withArticles 4.10, 5.4and6.3.
Chapter IV
Proceedings
Article 8-Initiation ofproceedings
8.1 Except asprovided forinparagraph 8.5ofthisArticle, aninvestigation todetermine the
existence, degree andeffect ofanyalleged dumping shallbeinitiated upon awritten application to
theMinistry ofIndustry andCommerce byoronbehalf ofthedomestic industry.
8.2 Domestic producers representing amajor proportion ofthedomestic industry considered to
havebeeninjuredbydumpedorsubsidizedimportsoflikeproductsmayapplytotheMinistryofIndustry
andCommerce fortheinitiation ofaninvestigation.
8.3 TheapplicationshallbedrawnupinconformitywiththerequirementslaiddownintheHandbook
prepared bytheMinistry ofIndustry andTrade andapproved bytheCommission, andshallinclude
thedocumentation mentioned intheHandbook andinthequestionnaires made available forthepurpose.
Theapplication shallalsoinclude evidence oftheexistence of(a)dumping; (b)injury; and(c)acausal
relationship between thedumped imports andthealleged injury.
8.4 Theapplication shallcontain, atleast, thefollowing information:
(a) Theidentity oftheapplicant andadescription ofthevolume andvalue ofthedomestic
production ofthelikeproduct bytheapplicant. Where anapplication ismade onbehalf
ofthedomestic industry, theapplication shallidentify theindustry onbehalf ofwhich
theapplication ismade byalistofallknown domestic producers ofthelikeproduct
(orassociations ofdomestic producers ofthelikeproduct) and,totheextent possible,
adescription ofthevolume andvalue ofdomestic production ofthelikeproduct
accounted forbysuchproducers;
(b) adetailed description oftheimported goods inquestion;
(c) thevolume andvalue ofdomestic production oflikeproducts accounted forbysuch
products;
(d) country oforigin andexport;G/ADP/N/1/PRY/2
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(e) inthecaseofdumped imports, theexport prices andtheprices atwhich theproduct
inquestion issold, intheordinary course oftrade, forconsumption inthemarket of
thecountry oforigin orexport (or,where appropriate, information ontheprices at
which theproduct issoldfromthecountry orcountries oforigin orexport toathird
country, orontheconstructed value oftheproduct);
(f) inthecaseofsubsidized imports, adetailed description ofthenature andamount of
thesubsidy, indicating theauthority ororgan bywhich itwasgranted andtheapplicable
provision;
(g) dataontheevolution ofthevolume ofimports andtheireffect onprices ofthelike
product inthedomestic market;
(h) determination ofthedamage caused bydumped orsubsidized imports inconformity
withArticles 6and7ofthisDecree;
(i) appropriate evidence ofdumping orsubsidization andoftheinjury tothedomestic
industry aswellasthecausal relationship between thetwo;
(j) name andaddress ofimporters andexporters, ifknown.
8.5 If,inspecialcircumstances,theMinistryofIndustryandTradedecidestoinitiateaninvestigation
without having received awritten application byoronbehalf ofadomestic industry fortheinitiation
ofsuchinvestigation, itshallproceed onlyifithassufficient evidence ofdumping, injury andacausal
link,asdescribed inparagraphs 8.3and8.4ofthisDecree, tojustify theinitiation ofaninvestigation.
Article 9-Standing fortheinitiation ofprocedures
9.1 Anapplication shallbeconsidered tohavebeenmade byoronbehalf ofthedomestic industry
ifitissupported bythose domestic producers whose collective output constitutes more than50percent
ofthetotalproduction ofthelikeproduct produced bythatportion ofthedomestic industry expressing
either support fororopposition totheapplication. However, noinvestigation shallbeinitiated when
domestic producers expressly supporting theapplication account forlessthan25percentoftotal
production ofthelikeproduct produced bythedomestic industry.
Article 10-Consultations withthegovernment oftheexporting country
10.1 Inthecaseofinvestigation ofsubsidies, theMinistry ofIndustry andTrade shallafford the
authorities ofthecountries whose products areunder investigation, within fiveworking daysfollowing
receipt oftheapplication, theopportunity toorganize consultations, within amaximum ofonemonth,
between theParaguayan authorities andtheauthorities ofthecountry oforigin orofexport withthe
aimofclarifying thefactsofthecaseandarriving atamutually satisfactory solution. Theinvitation
toholdconsultations shallnothinder theinitiation oftheinvestigation.
10.2 Once theperiod ofonemonth fortheholding ofprior consultations hasexpired, theMinistry
ofIndustry andTrade, within thetime-limit referred toinArticle 12ofthisDecree, shallevaluate
theapplication foraninvestigation inorder todecide whether ornottheinvestigation should beinitiated
andthecaseopened.Ifamutuallysatisfactorysolutionisfoundthroughpriorconsultations,theMinistry
ofIndustry andTrade shallrefrain from initiating theinvestigation andclose thecase.G/ADP/N/1/PRY/2
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Article 11-Procedural rectifications
11.1 Oncetheapplicationfortheinitiationofaninvestigationhasbeenreceived,andwithoutprejudice
totheprovisions ofArticle 10ofthisDecree, theMinistry ofIndustry andTrade shalldetermine, within
fiveworking days, whether theapplication meets therequirements laiddown inArticle 8.3ofthis
Decree. Iftheapplication doesnotmeetthose requirements, oriftheMinistry ofIndustry andTrade
considers thatitisnecessary torequest further information inorder tobeabletoevaluate theapplication,
itshallsoinform theapplicant sothatthelatter maymake thenecessary corrections orsupply the
required information, ontheunderstanding thatifthisisnotdonewithin 30working days, thecase
willbeclosed.
11.2 IftheMinistry ofIndustry andTrade considers thattheapplication meets therequirements
ofArticle 8.3ofthisDecree anddoesnotrequire additional information, itshallbegin itsevaluation
within thetime-limit provided inArticle 12ofthisDecree.
Article 12-Evaluation oftheapplication
12.1 Once theapplication hasbeenreceived, andwithout prejudice totheprovisions ofArticles 10
and11ofthisDecree, theMinistry ofIndustry andTrade shall, within amaximum of30working
daysfollowing thesubmission oftheapplication:
(a) Accept theapplication onthegrounds thatthere issufficient evidence ofdumping or
subsidization andofresulting injury tothedomestic industry inaccordance withthese
Regulations;
(b) request theapplicant, ifnecessary, toprovide further evidence orinformation, within
aperiod of15working days;
(c) reject theapplication onthegrounds thatthere isinsufficient evidence towarrant the
application ofanti-dumping duties orcountervailing duties.
12.2 IftheMinistry ofIndustry andTrade accepts theapplication, itshallissuearesolution tothat
effect inwhich itsetsforth thereasons foritsdecision andorders theinitiation ofaninvestigation.
TheresolutionshallbepublishedintheOfficialGazettewithinthreeworkingdaysfollowingthedecision.
Theinitiation oftheinvestigation shallnothinder theprocedures ofcustoms clearance.
Apublic notice oftheinitiation ofaninvestigation shallcontain orotherwise make available
through aseparate report, adequate information onthefollowing: (1)Thename oftheexporting country
orcountries andtheproduct involved; (2)thedateofinitiation oftheinvestigation; (3)thebasis on
which dumping isalleged intheapplication; (4)asummary ofthefactors onwhich theallegation
ofinjury isbased; (5)theaddress towhich representations byinterested parties should bedirected;
(6)thetime-limits allowed tointerested parties formaking theirviews known.
12.3 Incaseswhereadditionalinformationisrequestedfromtheapplicant,therequestbytheMinistry
ofIndustry andTrade shallhavetheeffect ofinterrupting the30-day timeperiod, which shallresume
when theapplicant supplies theinformation or,ifhefailstodoso,when the15daysreferred toin
Article 12.1haveelapsed.
12.4 IftheMinistry ofIndustry andTrade considers thatthere isinsufficient evidence towarrant
theinitiation ofaninvestigation, itshallissueasubstantiated resolution tothateffect, andshallnotify
theinterested parties thereof within three working days.G/ADP/N/1/PRY/2
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12.5 Inthecaseofapplications fortheinitiation ofaninvestigation concerning imports from any
ofthemember countries ofMERCOSUR, andonceithasbeenestablished thattheapplication meets
therequirements laiddown inthisDecree andthatithasbeendulysubstantiated, thegovernment of
theexporting country shallbenotified, andefforts made toensure thatthefactsareknown toboth
sides andthatconsultations areheldwithaview toreaching amutually satisfactory solution tothe
issue.
12.6 Ifinexceptional circumstances theMinistry ofIndustry andTrade decides toinitiate an
investigation without having received awritten application bythedomestic industry, itshallproceed
onlyifithassufficient evidence ofdumping, injury orthreat ofdumping, andofacausal link,in
conformity withtheprovisions ofthisDecree, towarrant theinitiation ofaninvestigation.
Article 13-Notification andsending ofquestionnaires
13.1 Within seven working daysfollowing thedateofpublication oftheresolution ordering the
opening oftheinvestigation, theMinistry ofIndustry andTrade shallnotify theinterested parties of
thesaidresolution andatthesame timeprovide themwiththequestionnaire andforms specially used
toobtain relevant information from theinterested parties concerned, including theauthorities ofthe
exporting country where appropriate. Thelatter shallbenotified through thediplomatic orconsular
representation inParaguay.
13.2 Where thenumber ofexporters involved isparticularly high, thenotification shallbesentonly
totheassociation oftheexporting member ortotherelevant trade association, asappropriate.
Article 14-Reply
14.1 Thenotification referred tointhisArticle shall provide theparties withatime-limit of
40calendar daysfollowing receipt ofthenotification andthequestionnaire toreply tothequestionnaire
andtheforms andtosupply proof andevidence, itbeing understood thatiftheyfailtodosowithin
thesettime-limit, theMinistry ofIndustry andTrade maytakeadecision onthebasis ofthebest
information available.
14.2 Inspecial circumstances, when arequest hasbeendulysubstantiated bytheinterested parties
andwhen theMinistry ofIndustry andTrade considers thatthere aresufficient grounds fordoing so,
the40daytime-limit maybeextended byamaximum of15calendar days.
14.3 Users from theproduction sectors oftheproducts under investigation, andrepresentative
consumer organizations incases where theproduct iscommonly soldatretail level, shallbegiven
theopportunity toprovide anyinformation which isrelevant totheinvestigation regarding dumping
orsubsidies, injury andthecausal linkbetween thetwo.
14.4 Thereplies submitted bytheparties aswellasaccompanying documentation shallbeinSpanish
or,where thisisnotpossible, shallbesupplied together withanofficial translation.
14.5 Evidence andinformation presented byeachoftheinterested parties shallbebrought tothe
attention ofeachoftheparties involved, withtheexception ofinformation classified asconfidential,
which shallbetreated assuchbytheMinistry ofIndustry andTrade. Insuchcases, theparties providing
theconfidential information shallberequired tofurnish non-confidential summaries thereof or,in
exceptional circumstances when thisisnotpossible, theyshallprovide astatement ofthereasons why
summarization isnotpossible.G/ADP/N/1/PRY/2
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14.6 IftheMinistry ofIndustry andTrade considers thatarequest forconfidentiality isnotwarranted
andifthesupplier oftheinformation isunwilling toauthorize itsdisclosure ingeneralized orsummary
form, theMinistry ofIndustry andTrade maydisregard suchinformation unless itcanbedemonstrated
totheirsatisfaction from appropriate sources thattheinformation iscorrect.
Article 15-Verification oftheevidence
15.1 Throughouttheinvestigation,theMinistryofIndustryandTrademaycalluponothergovernment
units oranyother department oroffice which possesses information thatitdeems relevant tothe
verification ofthefactstocooperate, provide additional information orparticipate inanyother way.
15.2 Where itdeems necessary, theMinistry ofIndustry andTrade maycarry outinvestigations
andobtain relevant evidence intheterritory oftheexporting country, subject totheauthorization of
theexporting firms, andprovided theyhavenotified theauthorities ofthegovernment inquestion and
thatthose authorities donotraiseanyobjections.
15.3 Should anyinterested party refuse access tonecessary information, failtoprovide such
information within areasonable period orsignificantly impede access thereto, preliminary andfinal
determinations maybemade onthebasis ofthebestinformation available.
Article 16-Provisional measures
16.1 Within amaximum period of90calendar daysfollowing theopening oftheinvestigation, the
Ministry ofIndustry andTrade mayrecommend thattheMinister ofIndustry andTrade andtheMinister
ofFinance impose provisional measures ifitconcludes thatsuchmeasures arenecessary toprevent
further injury from being caused tothedomestic industry during theinvestigation. TheMinister of
Industry andTrade andtheMinister ofFinance shall decide, within 15calendar days ofsuch
recommendation, ontheimposition ofprovisional measures byissuing areasoned jointministerial
resolution. Theinterested parties shallbeinformed ofthesaidresolution which shallbepublished
intheOfficial Gazette.
16.2 IftheMinistry ofIndustry andTrade considers thatthecircumstances sojustify, the90day
time-limit mentioned intheprevious paragraph maybeextended byupto30additional calendar days.
16.3 Theimposition ofprovisional measures maybeordered onlyifapreliminary affirmative
determination hasbeenmade thattheincrease inimports ortheexistence ofdumping orsubsidization
hascaused injury tothedomestic industry asdefined inthisDecree.
16.4 Innocaseshalltheimposition ofprovisional measures beordered sooner thansixcalendar
daysfollowing thedateofthepublication initiating theinvestigation.
16.5 Provisionalmeasuresshallconsistinprovisionalanti-dumpingorcountervailingdutiesexpressed
interms ofanadvalorem percentage orinrelation toabaseprice. TheMinister ofIndustry andTrade
andtheMinister ofFinance maydecide towithhold theimposition ofaprovisional dutyuntilafinal
determination ismade, inwhich casetheimporter shallprovide asecurity intheform ofabond or
bankguarantee covering thefullpayment oftheduty. Theprovisional measure shallnotbegreater
thantheprovisionally estimated margin ofdumping. Itshallnotbeapplied foraperiod exceeding
fourcalendar months. However, inthecaseofanti-dumping investigations, attherequest ofexporters
representing asignificant percentage ofthetradeinvolved, thatperiod canbeextended tosixmonths,
ortoninemonths when inorder toremove injury adutylower thanthemargin ofdumping isbeing
considered.G/ADP/N/1/PRY/2
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Article 17-Undertakings withrespect toprices orsubsidies
17.1 Incaseswhere anaffirmative preliminary determination ofdumping orsubsidies hasbeenmade,
aninvestigation maybesuspended orterminated without theimposition ofprovisional ordefinitive
measures when undertakings areentered intounder which thecompetent authorities ofthecountry
oforigin orthecountry ofexport, theproducers ortheexporters agree torevise export prices, to
eliminate orlimit thesubsidy ortocease exports toParaguay insuchawaythattheinjury tothe
domestic industry isremoved.
17.2 Proposals toenterintotheundertakings referred tointhepreceding paragraph shallbesubmitted
totheMinistry ofIndustry andTrade which shallnotify theinterested parties thereof within 15working
daysfollowing theirsubmission andgrant suchparties aperiod oftendaystopresent theirwritten
comments. TheMinistry ofIndustry andTrade maysuggest undertakings asreferred tointhisArticle,
butnoexporters shallbeforced toaccept them.
17.3 Within fiveworking daysfollowing theten-day period referred tointhepreceding paragraph,
theMinistry ofIndustry andTrade shallconvene ameeting oftheCommission towhich itshallsubmit
theproposals, thecomments received andthetechnical recommendations inrespect thereof for
examination. TheMinister ofIndustry andTrade andtheMinister ofFinance shallissue areasoned
joint ministerial resolution containing itsfinal determination astowhether ornotitaccepts the
undertakings inquestion. Theinterested parties shallbenotified ofthesaidresolution, which shall
bepublished intheOfficial Gazette within three working days.
17.4 Thejointministerial resolution referred toin17.3above mayprovide forthenon-imposition
ofprovisional measures, theimposition ofsuchmeasures butforalower amount thanthemargin of
dumping ortheamount ofthesubsidy, oranyother appropriate concession. However, theapplication
ofsuchconcessions shallremain subject tothefulfilment oftheaccepted undertakings. Theresolution
mayalsoprovide fortheimmediate application ofprovisional measures intheevent ofnon-fulfilment
oftheundertakings orfailure bytheauthority, theproducer ortheexporter tofurnish periodic
information concerning fulfilment ortoallow therelevant datatobeverified.
17.5 Evenwhere anundertaking isaccepted, theinvestigation shallbeterminated when theexporter
sorequests ortheMinistry ofIndustry andTrade sodecides. Insuchcases, ifanegative determination
withrespect todumping orsubsidies issubsequently made, theresolution terminating theinvestigation
shallannounce thetermination oftheundertaking, except where suchdetermination islargely based
ontheexistence ofthesaidundertaking.
Article 18-Final determination
18.1 TheMinistry ofIndustry andTrade, having given alloftheinterested parties ample opportunity
topresent alloftheevidence andinformation theyconsider relevant, andonthebasisofsuchevidence
andtheinformation available, shallconvene theCommission, within aperiod ofthreecalendar months
following thedateofthejointministerial resolution containing thepreliminary determination, inorder
tosubmit theconclusions andrecommendations oftheinvestigation totheCommission forexamination
anddiscussion. IftheMinistry ofIndustry andTrade considers thatthere arespecial circumstances
tojustify suchastep,thesaidperiod maybeextended byupto30calendar days.
18.2 Withinamaximumtime-limitofonecalendarmonthfollowingthedateatwhichtheCommission
wasconvened, theMinistry ofIndustry andTrade shallsubmit itsconclusions andrecommendations.
TheMinister ofIndustry andTrade andtheMinister ofFinance shallthenissue, within aperiod of
30calendar days, areasoned jointministerial resolution containing itsfinaldetermination withrespectG/ADP/N/1/PRY/2
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totheimposition ofduties inconformity withtherecommendations made, theevidence andthe
information available. Theinterested parties shallbenotified ofthesaidjointministerial resolution,
which shallbepublished intheOfficial Gazette within three working days.
18.3 Ifnodumping,subsidiesorresultinginjurytothedomesticindustryarefound,thecorresponding
resolution shalldeclare theinvestigation terminated andorder therestitution ofanyprovisional duty
orthereimbursement ofthesecurity where appropriate.
18.4 Dueconsideration shallbegiven inassessing thecasetonational economic interests andthe
public interest, andtotheinformation presented bytheparties inthatrespect, including information
presented bygroups orassociations ofusers andconsumers. Adetermination nottoimpose measures
maybemade when itisconcluded thatsuchmeasures would result inmaterial injury tothenational
economy.
18.5 Theimposition ofdefinitive measures shallbeordered onlyifthere issufficient evidence of
dumping orsubsidization andresulting injury tothedomestic industry under theterms ofthisDecree.
18.6 Insuchcases,andprovidingapreliminarydeterminationhasbeenmadeinvolvingtheimposition
ofprovisional measures, thecorresponding surety orguarantee shallberealized where appropriate.
18.7 When ananti-dumping orcountervailing dutyisimposed inrespect ofanyproduct, suchanti-
dumping orcountervailing dutyshallbecollected, intheappropriate amounts ineachcase, onanon-
discriminatory basis onimports ofsuchproduct from allsources found tobedumped orsubsidized
andcausing injury, except astoimports from those sources from which price undertakings or
undertakings tolimitoreliminate subsidies under theterms ofArticle 17ofthisDecree havebeen
accepted.
18.8 TheMinistryofIndustryandTradeshallnamethesupplierorsuppliersoftheproductconcerned.
If,however, several suppliers from thesame country areinvolved, anditisimpracticable toname
allthese suppliers, theMinistry ofIndustry andTrade mayname thesupplying country concerned.
Ifseveral suppliers fromdifferent countries areinvolved, theMinistry ofIndustry andTrade mayname
either allofthesuppliers involved, or,ifthisisimpracticable, allofthesupplying countries involved.
Article 19-Calculation ofduties
19.1 Anti-dumping andcountervailing duties shallbeapplied inamounts equal tothemargin of
dumping orthesubsidy established. Innocaseshallanti-dumping orcountervailing duties exceed
themargin ofdumping ortheamount ofthesubsidy found toexist. However, adutylower thanthe
margin ofdumping ortheamount ofthesubsidy maybeestablished where suchdutywould besufficient
toremove injury tothedomestic industry.
19.2 Anyexporter whose exports aresubject toadefinitive anti-dumping orcountervailing duty
butwhowasnotactually investigated forreasons other thanarefusal tocooperate, shallbeentitled
toanexpedited review inorder thatanindividual dutyratemaybeestablished promptly forthatexporter.
19.3 When anti-dumping duties areimposed, theMinistry ofIndustry andTrade shallcarry out
anexamination todetermine theindividual margins ofdumping fortheexporters orproducers ofthe
exporting country inquestion whohavenotexported theproduct concerned toParaguay during the
period under investigation, provided suchexporters orproducers candemonstrate thattheyareinno
wayrelated totheexporters fromproducers oftheexporting country thataresubject toanti-dumping
duties ontheproduct.G/ADP/N/1/PRY/2
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Article 20-Refunding ofexcess amounts
20.1 Where thefinaldetermination callsfortheimposition ofanti-dumping orcountervailing duties
higher thantheprovisional duties, thedifference shallnotbecollected. However, ifthedefinitive
dutyislower thantheprovisional duty, theMinistry ofIndustry andTrade andtheMinistry ofFinance
shallissueajointresolution ordering theimmediate reimbursement ofthedutyorrelease ofthebond
orsecurity inthecorresponding amount.
Article 21-Retroactivity
21.1 Provisionalmeasuresandanti-dumpingorcountervailingdutiesshallonlybeappliedtoproducts
whichenterforconsumptionafterthedateofentryintoforceoftheresolutionscontainingthepreliminary
andfinaldeterminations.
21.2 However, definitive measures maybeimposed retroactively fortheperiod forwhich provisional
measures havebeenapplied where afinaldetermination ofinjury (butnotofathreat thereof orof
amaterial retardation oftheestablishment ofanindustry) ismade or,inthecaseofafinaldetermination
ofathreat ofinjury, where theeffect ofthedumped orsubsidized imports would, intheabsence of
theprovisional measures, haveledtoadetermination ofinjury.
21.3 Where adetermination ofathreat ofinjury ormaterial retardation ismade (butnoinjury has
yetoccurred), definitive duties maybeimposed onlyfromthedateofdetermination ofthreat ofinjury
ormaterial retardation. Insuchcases, orders willbegiven forrestitution ofthebondorsecurity made
during theperiod oftheapplication ofprovisional measures.
21.4 Incritical circumstances where theauthorities findthatinjury which isdifficult torepair is
caused bymassive dumped orsubsidized imports carried outintermittently inrelatively short periods,
thatthere havebeenprevious cases ofdumping causing injury, andthattheimporter wasaware or
should havebeenaware thattheexporter waspractising dumping andthatsuchpractice would cause
injury, definitive duties maybeassessed onproducts which wereputonsalewithin 90daysprior to
thedateofimposition ofprovisional measures. Innocase,however, maydefinitive duties beimposed
prior tothedateofpublication oftheresolution initiating theinvestigation incases ofdumping, or
prior tothedateoftheinvitation toholdconsultations referred toinArticle 10ofthisDecree.
21.5 Definitive duties mayalsobeimposed onproducts which wereputonsalewithin 90daysprior
tothedateofimposition ofprovisional measures incases offailure tocomply withtheundertakings
referred toinArticle 17ofthisDecree.
Article 22-Duration ofthemeasures
22.1 Anti-dumping andcountervailing duties shallapply aslongasandtotheextent necessary to
counteract thedumping orsubsidy which iscausing injury. However, anydutyshallbeterminated
onadatenotlaterthanfiveyears from itsimposition unless itisdetermined, inthereview referred
toinArticle 23ofthisDecree, thattheexpiry ofthedutywould belikely toleadtocontinuation or
recurrence oftheinjury andofdumping orsubsidization.
Article 23-Review procedure
23.1 Provided thataperiod ofatleastoneyearhaselapsed since theimposition ofthedefinitive
duty, theMinistry ofIndustry andTrade shall, upon request byaninterested party oronitsown
initiative, andassuming thereissufficient evidence thattheelimination ofthemeasures would belikelyG/ADP/N/1/PRY/2
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toleadtocontinuation orrecurrence ofinjury andofdumping andsubsidization, initiate areview
procedure toexamine theneedforthecontinued imposition oftheduty.
23.2 Asaresult ofthereview under thisArticle, itshallbedetermined whether ornottheduty
isstillwarranted. TheMinistry ofIndustry andTrade maydecide tomaintain, eliminate ormodify
thedutyaccording totheresults ofthereview. Ifitisdetermined thatthedutyisnolonger warranted,
itshallbeterminated immediately.
23.3 Forprocedural purposes, theprocedure referred tointhisArticle shallbegoverned bythe
provisions ofthisDecree.
Article 24-Review ofdefinitive duties
24.1 Without prejudice totheprovisions ofArticle 22,animporter mayrequest, within aperiod
ofuptosixmonths following thedateofpayment oftheduty, arefund ofanyanti-dumping dutypaid
inexcess oftheactual margin ofdumping provided suchimporter provides sufficient evidence that
themargin ofdumping onwhich thedutypayments werebased waseliminated orreduced toalevel
below thatofthedutyinforce.
24.2 TheMinistry ofIndustry andTrade andtheMinistry ofFinance shalldetermine whether or
notarefund should bemade andmayinitiate areview ofthecaseinorder tocheck theinformation
andthefactsclaimed bytheimporter. Arefund ofthedutypaidinexcess, where appropriate, shall
normally takeplace within 12months, andinnocasemore than18months, afterthedateonwhich
theimporter submitted therequest. Thepayment ofanyrefund shallnormally bemade within 90days
following theissuing bytheMinistry ofIndustry andTrade andtheMinistry ofFinance ofthejoint
ministerial resolution referred tointhisArticle.
Article 25-Judicial review
25.1 Theresolutions referred toinArticles 18and23maybeappealed through theadministrative
courts inconformity withthetime-limits andprocedures laiddown inthelawsgoverning thesystem
ofadministrative challenge.
Article 27-Duration oftheprocedure
27.1 Theinvestigations referred tointhisDecree shallbeconcluded notlaterthan12months from
thedateoftheresolution ordering theinitiation oftheinvestigation. Inexceptional cases when there
isevidence towarrant suchastep,thesaidperiod maybeextended upto18months.
27.2 Aninvestigation maybeconcluded atanytimeif,interalia,themargin ofdumping oramount
ofthesubsidy isdeminimis orthevolume ofimports isnegligible inaccordance withArticles 4.10,
5.4and6.3ofthisDecree.
Article 28-Notifications totheWTO
28.1 TheMinistry ofIndustry andTrade shallnotify theMinistry ofForeign Relations ofresolutions
containing preliminary andfinaldeterminations sothattheMinistry ofForeign Relations can,inits
turn, notify theappropriate bodies oftheWorld Trade Organization (WTO).G/ADP/N/1/PRY/2
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Article 29-Investigation ofimports originating innon-member countries oftheWTO
29.1 Inthecaseofinvestigations concerning imports originating innon-member countries ofthe
WTO withwhich Paraguay hasnotentered intoanyinternational commitments inthissphere, anti-
dumping orcountervailing duties maybeapplied simply upon proof oftheexistence ofdumping or
subsidization. Insuchcases, theimposition ofprovisional measures maybeordered assoonasthe
resolution ordering theinitiation oftheinvestigation isissued.
Chapter V
Final Provisions
Article 30-Supplementary application
30.1 ThisRegulation shallapply without prejudice totheprovisions oftherelevant multilateral and
bilateral treaties oragreements towhich Paraguay isaparty, inparticular theAgreement on
Implementation ofArticle VIoftheGeneral Agreement onTariffs andTrade 1994andtheAgreement
onSubsidies andCountervailing Measures contained intheFinal ActEmbodying theResults ofthe
Uruguay Round.
Article 31-Transitional provisions
Theprovisions ofthisDecree shallapply without prejudice totheprovisions ofAgreement
andAgriculture contained intheFinal ActEmbodying theResults oftheUruguay Round regarding
theapplication ofcountervailing duties toagricultural products inrespect ofwhich member countries
oftheWTO have undertaken domestic support commitments, andtotheprovisions concerning
non-actionable subsidies inArticles 8and9oftheAgreement onSubsidies andCountervailing Measures
oftheUruguay Round.
Article 32
ThisDocument shallbesigned bytheMinister ofIndustry andTrade, theMinister ofFinance,
theMinister ofAgriculture andLivestock andtheMinister ofForeign Relations.
Article 33
TheDecree shallbeproclaimed, published, transmitted totheOfficial Registry andfiled.