WORLD TRADE
ORGANIZATIONG/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2G/SG/N/1/ECU/3
22 September 2000
(00-3814)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing Measures
Committee on SafeguardsOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5, 32.6 AND 12.6 OF THE AGREEMENTS
ECUADOR
The attached communication, dated 26 May 2000, has been received from the Permanent
Mission of Ecuador.
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I have the honour to transmit, for all relevant purposes, the text of Resolution No. 52 of the
Foreign Trade and Investment Council (COMEXI), of 10 April 2000, which was published in the
Official Register ( Registro Oficial ) No. 70, of 4 May 2000, under the title:  " Rules and Procedures for
the Application of Measures  to Prevent and Counteract the Adverse Effects of Unfair Trade Practices
or Increased Imports under Conditions such as to Cause or Threaten to Cause Serious Injury to
Domestic Industry."
As indicated in the final preambular paragraph of the attached Resolution, this amends
Resolution No. 0003 of 1 April 1998, duly notified to the WTO.G/ADP/N/1/ECU/2
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RESOLUTION NO. 52
The Foreign Trade and Investment Council (COMEXI)
CONSIDERING:
That it is necessary to facilitate the implemen tation of international treaties and to adapt
domestic law to the commitments assumed in the World Trade Organization and the Andean
Community, so as to avoid injury to domestic industry stemming or possibly stemming from dumping
and subsidization, or a substantial increase in imports under conditions that affect domestic industry(safeguards);
That the Foreign Trade and Investment Law ( LEXI), published in Official Register No. 82 of
8 July 1997, authorizes the Foreign Trade and Investment Council (COMEXI) to impose anti-
dumping duties, countervailing duties and safeguard measures;
That it is essential to establish procedures for the exercise of COMEXI's responsibilities, with
regard to preventing and remedying the adverse affects on domestic industry caused by unfair trade
practices or anomalous situations concerning imports;
That under the terms of Executive Decree No. 1701, published in Official Register No. 378 of
7 August 1998, Executive Decree No. 2722-A of 30 September 1991 establishing regulations to
prevent or remedy dumping or subsidy practice was repealed;  and,
That Resolution N-0003 of 1 April 1998 issued the "Rules and procedures to be followed for
the applications of measures to prevent and counteract the adverse effects of unfair trade practices or
increased imports under the conditions such as to cause or threaten to cause serious injury to domestic
industry", which in view of the suggestions of several Member countries of the World Trade
Organization and the World Bank, need to be reformed in order to remain consistent with the terms of
the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994;
In the exercise of its powers,
RESOLVES:
To issue the following "RULES AND PROCEDURES FOR THE APPLICATION OF
MEASURES TO PREVENT AND COUNTERACT THE ADVERSE EFFECTS OF UNFAIRTRADE PRACTICES OR INCREASED IMPORTS UNDER CONDITIONS SUCH AS TO
CAUSE OR THREATEN TO CAUSE SERIOUS INJURY TO DOMESTIC INDUSTRY."
TITLE I
OBJECT AND SCOPE
ARTICLE 1. Object:   The object of the present instrument is to:
Apply the provisions of the following World Trade Organization Agreements:  the Agreement
on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, the Agreement
on Subsidies and Countervailing Measures and the Agreement on Safeguards.G/ADP/N/1/ECU/2
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Determine the conditions for the application of anti-dumping and countervailing duties on
imports in order to counteract unfair trade practices and remedy distortions created by such practices.
Determine the conditions for the application of safeguard measures to imports originating in
and coming from WTO Member countries.
Establish the procedure to be followed in investigations concerning unfair practices and
safeguards, to determine whether to impose anti-dumping duties, countervailing duties and safeguard
measures.
The provisions of the present instrument shall apply insofar as they do not conflict with
Ecuador's international commitments under the international conventions or treaties regulating the
application of countervailing duties, anti-dumping duties or safeguard measures, the provisions of
which shall prevail where they are inconsistent with those contained in this instrument.
Dumping, subsidy and safeguards investigations with respect to products originating in
Member countries of the Andean Community shall be carried out in accordance with the procedures
established in the rules issued by this Organization.
Safeguards in connection with textiles shall be applied pursuant to the provisions of Article 6
of the WTO Agreement on Textiles and Clothing.
In the case of agricultural products designated for the use of special safeguards in the
schedule of bindings under the WTO, the relevant provisions of the WTO Agreement on Agriculture
shall be taken into account, subject to the application of the provisions of this Resolution relating tosafeguards.
ARTICLE 2.   Scope:   These rules shall apply in accordance with the relevant provisions of
the Agreements of the World Trade Organization (WTO), other than the exceptions expressly set out
herein for non-WTO Member countries in respect of which no international agreements have been
entered into.
For matters not covered by these rules, WTO and Andean regulations shall apply where
appropriate, taking precedence over domestic legislation.
TITLE II
DEFINITIONS
ARTICLE 3:   Definitions:
Anti-Dumping Agreement:  Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994.
Threat of serious injury:   Serious injury to a domestic industry that is clearly imminent
which shall be determined on the basis of facts and not merely on allegation, conjecture or remote
possibility.
Investigating authority:   The Trade Directorate of the Ministry of Foreign Trade,
Industrialization and Fisheries (MICIP), which is responsible for initiating and conducting dumping,
subsidies and safeguard investigations.G/ADP/N/1/ECU/2
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COMEXI:   The Foreign Trade and Investment Council.
Domestic consumers:   Persons buying for consumption either the imported product under
investigation or like or directly competitive domestic products, and domestic products incorporating
either the imported product under investigation or like or directly competitive domestic products.
Production cost:   Includes the cost of direct materials and components, indirect
manufacturing costs, including general selling and administrative costs.
Direct costs and expenses:  Those which are specific to the product under investigation.
Injury:  The material loss or impairment or the deprivation of any normal gain which the
domestic producers of the goods in question may suffer , or an impediment to the establishment of new
industries.
Serious injury:  A significant overall impairment in the position of a domestic industry.
Anti-dumping duty:  An additional customs duty which is applied to goods imported under
dumping conditions, intended to restore the condit ions of competition distorted by the dumping.
Countervailing duty:  An additional customs duty which is applied to subsidized goods
imported into Ecuadorian territory, intended to restore the conditions of competition distorted by the
subsidy.
Dumping:  An import is considered as being at a dumped price if the export price is less than
the normal value of a like product destined for consumption in the country of origin or of export in the
ordinary course of trade, when compared at the same level of trade, normally ex-factory.
Centrally-planned economies:  Economies in which the majority of enterprises are wholly
or partly owned by the State and in which the operating criteria, including prices, production,
investment programmes and levels of employment, are under the direct control of the Government.
Indirect manufacturing costs:   These include the cost of indirect materials and components,
the cost of indirect labour, the cost of energy, in cluding electricity and fuel, the depreciation of assets
consumed in production and other relevant indirect costs.
Massive imports:  Imports in large quantities of the product under investigation, or imports
which have increased or could potentially increase in such quantities,  in absolute terms or in relation
to the domestic industry, or under such conditions as to  cause or threaten to cause serious injury to
the domestic industry producing like or directly competitive products.
Initiation of an investigation:   The procedural action by which a country initially or
formally commences an anti-dumping investigation.
LEXI:   Foreign Trade and Investment Law
Provisional safeguard measure:  Any measure of a temporary character adopted in
circumstances critical to a domestic industry, in order to avert serious injury.
Ordinary course of trade:   Trade reflecting market conditions in the country of origin and
carried out habitually or within a representative period between independent buyers and sellers.G/ADP/N/1/ECU/2
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Interested parties:   The applicant, a producer of the like product in Ecuador, a trade or
business association, the majority of whose members are producers of a like product in Ecuador, animporter, industrial user or consumer of the product under investigation, a foreign exporter or
producer, the Government of the exporting country, a trade or business association in the exporting
country whose members are exporters or producers of the product.
Unfair trade practices:  Imports of goods under dumping conditions or goods which have
been subsidized in their country of origin or provenance.
Export price:  The price actually paid or payable for the product sold in the country of origin
for export to Ecuador in the ordinary course of trade.
Directly competitive product:  A product whose physical characteristics and composition
differ from those of the imported product, but which fulfils the same functions, meets the same needsand is commercially substitutable.
Like product:  A product which is identical, i.e. alike in all respects to the imported product,
or another product which, although not alike in all respects, has characteristics closely resembling
those of the imported product.
Adjustment programme: All actions taken by domestic producers to supplement safeguard
measures, for the purpose of improving their competitiveness and adjusting their production activities
to foreign competition.
Domestic industry:  The producers as a whole of the like or directly competitive products
operating in Ecuador, or those whose collective output of the like or directly competitive products
constitutes a major proportion of the total domestic production of those products.
Safeguard:  Exceptional measure temporarily applied in the form of a tariff increase or
quantitative restriction to imports of products into Ecuadorian territory which have increased or could
potentially increase in such quantities, in absolute terms or relative to domestic production, or undersuch conditions as to cause or threaten to cause serious injury to the domestic industry that produces
like or directly competitive products.
Subsidies:  An import is considered as having been subsidized when the production,
manufacture, marketing, transport or export of the imported product or of its raw materials and inputshave received directly or indirectly any bounty, aid, premium, stimulus or incentive from the
government of the country of origin or of export or from its public or semi-public agencies, conferring
on the recipient a benefit which strengthens its international competitive position, except in the case
of internationally-accepted practices.
Domestic industrial users:  Those who use for the production of their own products the
imported product under investigation or like or directly competitive domestic products.
Normal value:  The normal value of a product exported to Ecuador is the price actually paid
or payable for a like product when sold for consumption or use in the domestic market of the countryof origin or of export in the ordinary course of trade.G/ADP/N/1/ECU/2
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TITLE III
ANTI-DUMPING DUTIES AND COUNTERVAILING DUTIES
CHAPTER I
DETERMINATION OF THE MARGIN OF DUMPING,
THE EXPORT PRICE AND THE NORMAL VALUE
ARTICLE 4.   Determination of the margin of dumping:  The margin of dumping shall be
determined by the difference between the normal va lue and the export price.  The margin shall be
calculated per unit of the product imported into Ecuadorian territory at the dumped price.
Where the product under investigation consists of goods which are not physically identical
with each other, the margin of dumping shall be estimated according to the type of good, in such a
way that the normal value and the export price involved in each calculation correspond to comparablegoods.  When the margin of dumping is calculated by the type of good, the margin for the product
under investigation shall be determined as the weighted average of all the individual margins which
have been estimated.  The weighting shall be calculated according to the proportion of each type of
good relative to total volume of the product exported during the period of investigation.
ARTICLE 5.   Determination of the normal value:   The normal value of an imported
product shall be understood to mean the price actually paid or payable for a like product when sold for
consumption or use in the domestic market of the country of origin or of export in the ordinary course
of trade.
Prices between associated parties or parties bound by a compensatory arrangement with each
other can only be considered to be in the ordinary course of trade and be used to establish normal
value if it is demonstrated that such prices are unaffected by the relationship, and are therefore
comparable to those in trade between independent parties.
Sales of the like product destined for consumption in the domestic market of the exporting
country shall be used, in the first instance, to determine normal value if such sales constitute 5 percent or more of the sales of the product under consideration to the importing Member.  However, a
lower ratio shall be acceptable where the evidence demonstrates that domestic sales at such lower
ratio are nonetheless of sufficient magnitude to provide for a proper comparison.
In the absence of such ordinary course of trade, as in the case of centrally-planned economies,
the point of reference shall be the normal value of a market-economy country with characteristics
similar to the country with a centrally-planned economy under investigation.
When there are no sales of the like product in the ordinary course of trade in the domestic
market of the country of origin or of export or when, because of the particular market situation, such
sales do not permit a proper determination of the normal value, such value shall be calculated using
the prices of exports to an appropriate third country in the ordinary course of trade, provided that
these prices are representative.  It may also be calculated on the basis of the cost of production in the
country of origin plus a reasonable amount for administrative, selling and general costs and for
profits.
Sales of the like product in the domestic market of the exporting country or sales to a third
country at prices below per unit (fixed and variable) costs of production plus administrative, selling
and general costs may be treated as not being in the ordinary course of trade by reason of price andG/ADP/N/1/ECU/2
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may be disregarded in determining normal value only  if it is determined that such sales are made
within a period of no less than six months in substantial quantities and are at prices which do not
provide for the recovery of all costs within a reasonable period of time.  For the purposes of thepresent paragraph, sales below per unit costs shall be considered to be made in substantial quantities
when they represent not less than 20 per cent of the total volume of sales considered in calculating
normal value.
In the case of imports originating in or coming from non-market economy countries, normal
value shall be determined on the basis of the price or constructed value of a like product in a market
economy third country at a comparable level of development, for domestic consumption or use, or onthe basis of the price charged by such third country to other countries, including Ecuador, or where
this is not possible, on any other reasonable basis, including the price actually paid or payable in the
domestic market for the like product, duly adjusted where necessary to include a reasonable profit
margin.
An appropriate market-economy third country shall be chosen on a reasonable basis, taking
due account of any reliable information available at the time of selection.  Time-limits shall also be
taken into account and, where appropriate, a third country subject to the same investigation shall be
used.
Immediately after the initiation of the investigation, the interested parties shall be informed of
the market-economy third country selected and given a reasonable period of time in which to submit
their comments.
Where products are not imported directly from the country of origin but from another country,
the price at which the products are sold from the country of export shall normally be compared with
the comparable price in the country of export.  Ho wever, comparison may be made with the price in
the country of origin, if, for example, the products are merely transshipped through the country of
export, or such products are not produced in the country of export, or there is no comparable price for
them in the country of export.
Costs shall normally be calculated on the basis of records kept by the exporter or producer
under investigation, provided that such records are in accordance with the generally accepted
accounting principles of the exporting country and reasonably reflect the costs associated with the
production and sale of the product under consideration.  Authorities shall consider all available
evidence on the proper allocation of costs, including that which is made available by the exporter or
producer, in particular in relation to establishing appropriate amortization and depreciation periodsand allowances for capital expenditures and other development costs.  Unless already reflected in the
cost allocations under this paragraph, costs shall be adjusted appropriately for those non-recurring
items of cost which benefit future and/or current production, or for circumstances in which costs
during the period of investigation are affected by start-up operations.
The amounts for administrative, selling and general costs and for profits shall be based on
actual data pertaining to production and sales in the ordinary course of trade of the like product by the
exporter or producer under investigation.  When such amounts cannot be determined on this basis, the
amounts may be determined on the basis of:
(a) The actual amounts incurred and realized by the exporter or producer in question in
respect of production and sales in the domestic market of the country of origin of the
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(b) the weighted average of the actual amounts incurred and realized by other exporters
or producers subject to investigation in respect of production and sales of the like
product in the domestic market of the country of origin;
(c) any other reasonable method, provided that the amount for profit so established does
not exceed the profit normally realized by other exporters or producers on sales of
products of the same general category in the domestic market of the country of origin.
ARTICLE 6.   Determination of the export price:  In cases where there is no export price
or where it appears to be the investigating authority that the export price is unreliable because ofassociation or a compensatory arrangement between the exporter and the importer or a third party, the
export price may be constructed on the basis of the price at which the imported products are first
resold to an independent buyer, or if the products are not resold to an independent buyer, or not resold
in the condition as imported, on such reasonable basis as the investigating authority may determine.
When calculating the export price, the necessary adjustments shall be made to take into
account all costs incurred between importation and resale, in order to establish a reliable export price.
These adjustments shall take into account, inter alia , transport costs, insurance, maintenance
and unloading, import duties and other taxes payable after export from the country of origin, areasonable margin of general, administrative and selling costs, a reasonable profit margin, and any
commission usually paid.
ARTICLE 7.   Conditions for making comparisons and adjustments:  A fair comparison
shall be made between the export price and the normal value, at the same level of trade, normally atthe ex-factory level, and in respect of sales made at as nearly as possible the same time.
Where the normal value and the export price as established are not on such a comparable
basis, due allowance, in the form of adjustments, shall be made in each case, on its merits, for
difference in factors which affect prices and price comparability. When the specified conditions are
met, adjustments can be made for, inter alia , the product's physical characteristics; import charges and
indirect taxes; discounts, rebates and quantities;  transport, insurance, handling, loading and ancillarycosts;  packing; credit;  after-sales costs;  commissions and currency conversions.
The amount of the adjustments to the normal value and the export price shall be calculated on
the basis of relevant information for the period of investigation of the practice or in the light of the
data for the latest financial year available.  When an interested party asks for a particular adjustmentto be taken into consideration, it shall provide the corresponding evidence.
CHAPTER II
DETERMINATION OF THE NATURE AND
AMOUNT OF THE SUBSIDY
ARTICLE 8.   Nature and amount of the subsidy:  The nature of subsidies, whether they
are prohibited or permissible, and in the later case actionable or non-actionable, as well as the amount
of the subsidy and the benefit to the recipient, shall be determined in accordance with the WTO
Agreement on Subsidies and  Countervailing Measures.
ARTICLE 9.   Deductions to determine the amount of the subsidy: The amount of the
subsidy shall be established by deducting the following elements from the total subsidy:G/ADP/N/1/ECU/2
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Any expenditure that has necessarily been incurred in order to be entitled to the subsidy or to
benefit therefrom.
Export taxes, duties and other levies to which the export of the product to Ecuador has been
subject and which are specifically intended to of fset the subsidy.  When a participant in an
investigation applies for such a deduction, it shall supply evidence substantiating the
application.
CHAPTER III
INJURY, THREAT OF INJURY AND RETARDATION OF THE
ESTABLISHMENT OF A DOMESTIC INDUSTRY
ARTICLE 10. Determination of injury:  A determination of injury shall be based on
sufficient and positive evidence and involve an objective examination of the volume of imports atdumped or subsidized prices, the impact of those imports on prices of the like product in the
Ecuadorian domestic market and the impact on the domestic industry.
With regard to the volume of the dumped or subsidized imports, consideration shall be given
to whether there has been a significant increase in those imports, either in absolute terms or relative todomestic production or consumption.
With regard to the effect of the dumped or subsidized imports on prices, consideration shall
be given to whether there has been a significant price undercutting as compared with the price of the
domestically produced like product, or whether the effect of such imports is to depress prices to asignificant degree or prevent price increases which otherwise would have occurred, to a significant
degree.
The examination of the impact of the dumped or subsidized imports on the domestic industry
concerned shall include an assessment of all relevant economic factors and indices having a bearing
on the state of the industry, including actual and potential decline in sales, profits, output, market
share, productivity, return on investments, or utilization of capacity;  factors affecting domesticprices; the magnitude of the margin of dumping or the subsidy as appropriate;  actual and potential
negative effects on cash flow, inventories, employme nt, wages, growth, and ability to raise capital or
investments.  This list is not exhaustive, and no one or several of these factors can necessarily give
decisive guidance.
The effect of the dumped or subsidized imports shall be assessed in relation to domestic
production of the like product when available data permit the separate identification of that production
on the basis of such criteria as the production process, and producers' sales and profits. If such
separate identification of that production is not possible, the effects of the dumped or subsidized
imports shall be assessed by the examination of the production of the narrowest group or range ofproducts which includes the like product, for which the necessary information can be provided.
Where imports of a product from more than one country are subject to anti-dumping
investigations, the investigating authority shall acc umulatively assess such imports if the margin of
dumping established in relation to the imports of each country is more than de minimis  and the
volume of imports from each country is not negligible.
ARTICLE 11.   Evidence of injury:  If the investigation relates to products originating in or
consigned from countries in respect of which there are no applicable international obligations,G/ADP/N/1/ECU/2
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consideration shall be given to whether the country of export or of origin would provide evidence of
injury to Ecuadorian exports.
If such evidence is not provided, Ecuador may impose anti-dumping or countervailing duties
simply on a finding of dumping or subsidization.
ARTICLE 12.   Determination of a threat of injury:  A determination of a threat of
material injury to a domestic industry shall be based on facts and not merely on allegation, conjecture
or remote possibility.  The change in circumstances which would create a situation in which the
dumping or subsidy would cause injury must be clearly foreseen and as imminent.  In making adetermination regarding the existence of a threat of  material injury, the authorities should consider,
inter alia , such factors as:
- The nature of the practice in question and the trade effects likely to arise from the 
dumping and the subsidization;
- a significant rate of increase of dumped or subsidized imports into the domestic 
market indicting the likelihood of substantially increased importation;
- sufficient freely disposable, or an imminent, substantial increase in, capacity of the
exporter indicating the likelihood of substantially increased exports to the importing
Member's market in unfair conditions, taking into account the availability of other
export markets to absorb any additional exports;
- whether the imports are entering at prices that would, to a significant degree, depress
prices or prevent domestic price increases which otherwise would have occurred, and
would probably increase demand for further imports; and
- inventories of the product being investigated.No one of these factors by itself can necessarily give decisive guidance, but the totality of the
factors considered must lead to the conclusion that further exports at dumped and subsidized pricesare imminent and that, unless protective action is taken, material injury would occur.
Where imports of a product from more than one country are simultaneously subject to anti-
dumping or subsidy investigations, the investigating authority may cumulatively assess the effects of
such imports only if the margin of dumping or subsidization established in relation to the importsfrom each country is more than de minimis  and the volume of imports from each country is not
negligible, and provided that a cumulative assessment of the effects of the imports is appropriate
taking account of the conditions of competition between the imported products and the like domestic
product.
ARTICLE 13.   Period of review of injury or threat thereof:  The review of the injury or
threat of injury shall comprise a period covering imports of the like product in the last 12 months for
which information is available.
ARTICLE 14.   Causal link:  In order to determine whether there is a causal link between
the dumped imports and the injury to the domestic industry, the investigating authority shall also
examine known factors other than the dumped imports, which at the same time are injuring or could
injure the domestic industry.  Factors which may be considered in this respect include the volume and
prices of imports not sold at dumping prices, contraction in demand or changes in the patterns ofG/ADP/N/1/ECU/2
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consumption, restrictive trade practices of and competition between domestic and foreign producers,
developments in technology, and the export perfomance and productivity of these domestic industry.
CHAPTER IV
PROCEDURES
SECTION I
SUBMISSION AND ACCEPTANCE OF THE APPLICATION
ARTICLE 15.   Initiation of the proceeding:  Proceedings to investigate unfair international
trade practices shall be initiated ex officio or at the request of a major proportion of the domestic
industry.
ARTICLE 16.   Initiation ex officio:  The investigating authority may initiate an
investigation ex officio when there is sufficient evidence to assume the existence of dumping orsubsidization, of injury caused to the domestic industry by imports at dumped or subsidized prices,
and of the causal link between the two.
ARTICLE 17.   Initiation upon an application made by or on behalf of the domestic
industry:  Investigations to determine the existence, degree and impact of an alleged unfair
international trade practice shall be initiated upon a written application by or on behalf of the
domestic industry.  The application may also be made by an association of producers which, for the
purposes of the application, represents a major proportion of domestic production.
A major proportion of domestic production shall be taken to mean those domestic producers
whose collective output constitutes at least 50 per cent of the total production of the like or directly
competitive product.
An investigation shall not be initiated unless  the investigating authority has determined, on
the basis of an examination of the degree of suppo rt for, or opposition to, the application, expressed
by domestic producers of the like product, that the application has been made by or on behalf of the
domestic industry.  The application shall be considered to be made by or on behalf of the domesticindustry if it is supported by those domestic producers whose collective output constitutes more than
50 per cent of the total production of the like product produced by the part of the domestic industry
expressing either support for or opposition to the application.  However, no investigation shall be
initiated when domestic producers expressly supporting the application account for less than 25 per
cent of the total production of the like product produced by the domestic industry.
When domestic producers are related to the exporters or importers of the allegedly dumped or
subsidized product, the term "domestic industry" may be interpreted as referring to the rest of the
producers.  The word "related" shall be within the meaning of 4.1(i) of the Anti-Dumping Agreement.
In exceptional circumstances, in the case of regional markets, domestic industry may be
divided into two or more separate markets.  The producers within each market may be regarded as a
separate domestic industry if they sell all or almost all their production of the product in question in
that market and if the demand in that market is not to any substantial degree supplied by the producers
of the product in question located elsewhere in the country.  In such circumstances, injury or threat ofinjury may be found to exist even where a major portion of the total domestic industry is not injured,
provided there is a concentration of dumped or subsidized imports into that regional market and they
cause or threaten to cause injury to the producers of all or almost all the production within such
market.    G/ADP/N/1/ECU/2
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ARTICLE 18.   Application requirements:   The application must be submitted in writing
and shall contain such information as is reasonably available to the applicant on the following:
1. The identity of the applicant, name or business name and domicile of the applicant,
and where appropriate, his agent; activity in which he is engaged and documents in
support thereof;
2. description of the volume and value of the domestic production of like product,
indicating the specifications and characteristics, the tariff heading and other
identifying data;
3. where a written application is made on behalf of the domestic industry, the
application shall identify the industry on behalf of which the application is being
made by a list of all known domestic producers of the domestic product (or
associations of domestic producers of the like product) and, to the extent possible, adescription of the volume and value of domestic production of the like product
represented by such producers;
4. the names of the country or countries of origin or export in question;
5. the identity of each known foreign exporter or producer;
6. a list of known persons importing the product in question;7. information on prices at which the product in question is sold when destined for
consumption in the domestic markets of the country or countries of origin or export
and the export price to Ecuador (or, where appropriate, information on the prices at
which the product is sold from the country of countries of origin or export to a third
country or countries, or on the constructed value of the product) and information on
export prices or, where appropriate, on the prices at which the product is first resold
to an independent buyer in the territory of the importing Member;
8. information on the evolution of the value and volume of the imports of the allegedly
dumped or subsidized product;
9. the effect of the imports on the prices of the like product in the domestic market;
10. the examination of the impact of the imports on the domestic industry, as
demonstrated by relevant factors and indices having a bearing on the state of the
domestic industry, such as, actual and potential decline in sales, profits, output,
market share, productivity, return on investments or utilization of capacity;  factors
affecting domestic prices;  the magnitude of the margin of dumping or subsidization;actual and potential negative effects on cash flow, inventories, employment, wages,
growth, and ability to raise capital or investments;
11. in the case of a subsidy, the application must identify the encouragement, incentive,
premium, subsidy or help of any kind provided to the imported good or its rawmaterials and inputs in the country of origin or of export, the authority or agency
providing such support, indicating where appropriate the applicable law and, where
possible, the value or amount thereof and its impact on the price of the imported
product;G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
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12. determination of the injury, threat of injury or material retardation of the
establishment of a productive activity in Ecuador, caused by the imports at dumped orsubsidized prices.;
13. evidence and documents to verify the information provided and arguments in support
of the need to apply anti-dumping duties or countervailing duties;
14. elements to determine the causal relationship between the practice and the injury, in
accordance with Articles 10 and 14 above;
15. the investigating authority shall require the interested parties making available
confidential information to provide non-confidential summaries thereof;
16. place and date of submission of the application.
SECTION II
EVALUATION OF THE APPLCATION AND INITIATION
OF THE INVESTIGATION
ARTICLE 19.   Submission of the application:   The application shall be submitted to the
Trade Directorate of the Ministry of Foreign Trade, Integration and Fisheries, in the original and with
a copy.
ARTICLE 20.   Receipt and evaluation of the application:  Within a non-extendable
period of eight working days from the date of submission of the application, the investigating
authority may:
(a) Accept the application, or
(b) Allow the applicant 15 working days in which to submit the duly completed forms
with the relevant documents demonstrating th at the information is suitable, as well as
the other requirements stipulated in Article 18 above.  This period shall be calculated
from the day following the corresponding request and may be extended, on request,
for a further 15 working days.
Once the forms have been submitted and the other requirements have been met, the
investigating authority shall have a period of 15 working days in which to take a decision.
This request shall interrupt the period established in Article 27, which shall recommence
when the applicant provides the information requested.
Where it is not appropriate to initiate an investigation, this shall be so stated in a reasoned
resolution, which shall be notified to the applican t within five working days following the date of
issue.  Appeals against such a resolution may be lodged with the corresponding court of law.
ARTICLE 21.   Withdrawal of the application:  If, after a period of 30 working days from
the request for further information such information ha s not been sent in its entirety, the applicant will
be deemed to have withdrawn th e application, the application shall be shelved and the applicant so
notified.G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 14
ARTICLE 22.   Initiation of the investigation:  An anti-dumping or subsidies investigation
shall be initiated, provided:
- It is established that the application was submitted on behalf of a major
proportion of the domestic industry, in accordance with Article 17 above;
- the information, documents and study submitted are sufficient to presume or
to determine the existence of an unfair practice, injury to the domestic
industry and a causal link between the unfair practice and the injury.
The MICIP Under-Secretary for Foreign Trade and Integration shall declare that it is
appropriate to initiate an anti-dumping or subsidization investigation, in a resolution that indicates thede facto and de jure  reasons for the decision.  Where the investigating authority does not submit the
draft resolution within the stipulated period, the Under-Secretary for Foreign Trade shall issue the
resolution to initiate a dumping investigation of its own accord, within a period of no more than three
working days.
An investigation shall not be initiated in cases where the volume of dumped or subsidized
imports is negligible, where the margin of dumping or the global level of subsidization is  de minimis
or where the injury caused by the imports in question is negligible.  For such purposes, the criteria set
out in Article 35 of this Resolution shall apply.
Where it is not appropriate to initiate an investigation, this shall be so stated in a reasoned
resolution, which shall be notified  to the applican t within five (5) working days following the date of
issue.  Such resolution may be appealed in a court of law.
ARTICLE 23.   Consultations:  When the application is accepted, in the course of the
investigation into dumping or subsidization pr actices the investigating authority shall hold
consultations with the interested parties, namely, the government authorities and the exporters of the
exporting country, the importers and domestic producers of the product in question, and domestic
industrial users and consumers,  in order to find a mutually agreed solution.
Where, in the process of the consultations, a mutually agreed solution is reached between the
parties, the initiation of an investigation shall be declared inappropriate or the investigation shall be
suspended.  If, after one month from the commencement of the consultations, no mutually agreed
solution has been reached, the investigation shall be continued.
Notwithstanding the provisions of this article, the Investigating Authority may arrange
consultations throughout the period of the investigation, but this shall not suspend or preventcontinuation of the investigation.
ARTICLE 24.   Publication and notification:  Both for dumping and for subsidization, once
the application has been accepted, before initiating the investigation the Investigating Authority shall
notify the government of the exporting country concerned.  If it is appropriate to initiate aninvestigation, the investigating authority shall publish the resolution initiating the dumping or
subsidizing investigation in the Official Register, expressly indicating the dates of initiation and
completion of the investigation, the name of the exporting country or countries and the product
concerned, the basis of the dumping allegation made in the application, a summary of the factors on
which the injury allegation is based, an address fo r the interested parties to contact and the time-
period in which the interested parties may submit their views.  The resolution shall be notified to the
Committee on Anti-Dumping Practices and the Committee on Subsidies and Countervailing MeasuresG/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 15
of the World Trade Organization when the country concerned is a Member of the Organization, and to
the interested parties.
The same procedure shall be followed when the investigating authority orders provisional and
definitive measures to prevent and remedy unfair trade practices.
Furthermore, the resolutions shall be published in a newspaper with a large circulation in
Ecuador, for the information of all those concerned.
For the purposes of publication and notification, the investigating authority shall have a
period of ten working days from the date of the reso lution ordering the initiation of the investigation
and the application of definitive or provisional measures.
The authorities shall avoid, unless a decision has been made to initiate an investigation, any
publicizing of the application for the initiation of an investigation.
The WTO Committee on Anti-Dumping Practices and the Committee on Subsidies and
Countervailing Measures, as appropriate, shall be notified before the measure is published.
ARTICLE 25.   Preparation of the file:   When the investigation is initiated, the
investigating authority shall prepare a file containing  all the information pertaining to the case.  The
file shall include a separate section containing information of a confidential nature.
SECTION III
DETERMINATION AND IMPOSITION OF PROVISIONAL MEASURES
ARTICLE 26.   Procedure:  The investigating authority shall prepare a technical report
determining, where appropriate, the level of any provisional anti-dumping or countervailing measures
and shall submit it to COMEXI for examination and decision.  COMEXI shall have a maximum of
15 working days from receipt of the report to take a decision, for which purpose, where applicable, it
shall hold a special meeting.
Provisional measures shall not be applied during the 60 days following the initiation of the
investigation.
Provisional measures may be applied if:
(a) An investigation has been initiated in accordance with Articles 15,16 and 17 of this
resolution, a public notice has been given to that effect and the interested parties have
been given adequate opportunities to submit information and make comments;
(b) a preliminary affirmative determination has been made of dumping or subsidies and
consequent injury to a domestic industry;  and
(c) the competent authority deems such meas ures necessary to prevent injury being
caused during the investigation.
The provisional anti-dumping or countervailing duties shall be applied through the same
resolution as that adopting the preliminary dete rmination, which may opt for any of the following
alternatives:G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 16
- To continue the investigation, without the application of provisional duties,
- to continue the investigation, with the application of provisional duties, or
- to terminate the investigation.When a dumping or subsidies investigation is carried out for products originating in or
coming from countries that are not Members of the World Trade Organization (WTO), or with which
Ecuador has signed no relevant treaties or agreements, COMEXI, within a period of 15 working days
from the receipt of the technical report of MICIP' s investigating authority, shall reach its decision.
The decision to impose preliminary measures shall be adopted through a COMEXI resolution,
on the basis of the MICIP technical report.
The resolution should contain:(a) The issues of fact and law on which the decision was based;
(b) the names of the suppliers, or when this is impracticable the supplying countries
involved;
(c) a description of the product concerned by the measure;
(d) considerations relevant to the injury determination; and,
(e) the duration of the provisional measure.In the case of dumping, any provisional measures may take the form of a provisional duty or a
security – by cash deposit or bond – equal to the amount of the anti-dumping duty provisionally
estimated.
In the case of subsidies, the provisional measures may take the form of provisional
countervailing duties guaranteed by cash deposits or bonds equal to the provisionally calculated
amount of subsidization.
Duties shall be paid on imports of the products subject to investigation, irrespective of the
importer.
The payment of provisional duties may be replaced by a bond or security posted in the form
and subject to the conditions laid down in the customs legislation.
The application of provisional measures shall be limited to as short a period as possible, not
exceeding four months or, following a fully substantiated decision from the competent authority, to a
period of no more than six months.
When a decision is made to adopt a definitive anti-dumping or countervailing measure, the
period of the application of a provisional measure shall be counted as part of the total duration of the
measure.
When the investigating authority, in the course  of an investigation, examines whether a duty
lower than the margin of dumping would be sufficie nt to remove injury, these periods may be six and
nine months, respectively.G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 17
The resolution determining the provisional measure shall be notified to the Ecuadorian
Customs Corporation by the Ministry of Foreign Trade, Industrialization and Fisheries, forinformation and implementation.
Duties shall not be imposed if the investigat ing authority determines that the volume of
dumped or subsidized imports is negligible, or if the margin of dumping or the global level of
subsidization is de minimis , or if the injury caused by the imports in question is negligible.  For such
purposes the criteria set out in Article 35 of this resolution shall apply.
SECTION IV
INVESTIGATION PERIOD AND EVIDENTIARY ASPECTS
ARTICLE 27.   Investigation period:  The investigating authority shall have a maximum of
three months from the initiation of the dumping or subsidies investigation to complete theinvestigation and to submit a report, containing its conclusions and recommendations, to COMEXI.
ARTICLE 28.   Access to the file:  From the initiation of the investigation, any interested
party or person demonstrating a legitimate interest in the investigation shall have access to the non-
confidential documents which make up the file and may request the issue of photocopies at hisexpense.
Sixty working days after the closure of the investigation, the file, apart from the confidential
information, shall become public, so that anyone may have access thereto.  In any event, the public
notice mentioned in Article 12 of the Anti-Dumping Agreement of the WTO (GATT 94) shall begiven.
ARTICLE 29.   Evidence and information requested or provided during the
investigation:  During the investigation period, the investigating authority may request and gather
such evidence as it considers pertinent.
The investigating authority may request any kind of information, including technical advice,
from the various departments of government, which shall respond as rapidly as possible.  It may also
request any opinion it considers relevant and any act ion conducive to the ascertainment of the facts.
Interested parties may comment on the information.
This request shall interrupt the period established in Article 27, which shall recommence
when the applicant provides the information requested.
Likewise, interested parties and all those who demonstrate a legitimate interest in
participating in the investigation may furnish pe rtinent evidence, reports and documents, up to ten
working days before the day on which the investigating authority concludes the investigation.
All documents, forms and other papers introduced must be submitted in Spanish with an
official Spanish translation.  If these requirements are not satisfied, the documents submitted may be
rejected as evidence by the investigating authority.
ARTICLE 30.   Confidential information:  Information shall be considered confidential if
its disclosure or publication might injure the competitive position of the enterprise concerned or have
a significantly adverse effect upon the person supplying the information or if it is provided on a
confidential basis.  A separate file, which may be inspected only by the competent authorities, shall beG/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 18
opened for confidential information provided by the applicant, other interested parties or the
authorities.
When confidential information is introduced into the investigation, it must be accompanied by
a non-confidential summary in sufficient detail to permit a reasonable understanding of the
information submitted in confidence.
If the authorities find that a request for confidentiality is not warranted and if the supplier of
the information is either unwilling to make the information public or to authorise its disclosure in
generalized or summary form, the authorities may disregard such information unless it can bedemonstrated to their satisfaction from appropriate sources that the information is correct.
Access to confidential information shall be re stricted to the competent authorities in the
exercise of their functions, in the course of which confidentiality must be duly maintained.
ARTICLE 31.   Technical information meetings:  Within 15 working days of the day
following the publication of the preliminary and final resolutions in the Official Register, interested
parties may request the holding of technical information meetings, the purpose of which shall be to
explain the methods used for determining the margins of dumping and calculating the subsidies, as
well as the determination of injury or threat thereof and the arguments concerning causality.
ARTICLE 32.   Clarificatory hearings:  At any stage of the investigation, the investigating
authority, ex officio or upon application by an interested party, may request the holding of public
hearings attended by representatives of the different interests, for the purpose of clarifying doubtful or
controversial points within the investigation, and explaining the methods used for determining themargins of dumping and calculating the subsidies, the determination of injury or threat thereof and
arguments concerning causality, as well as the effects on domestic industrial users and consumers.
There shall be no obligation on any party to attend a hearing, and failure to do so shall not be
prejudicial to that party's case.
Once convened, the hearing must be held within the next eight days, but the fact that it is
being held shall not interrupt or suspend the course of the investigation, or the periods specified for its
various stages.
Once a hearing has been opened, a representative of the investigating authority shall put
forward for discussion the items he considers necessa ry, together with the evidence submitted by the
applicant.  Subsequently, he shall act as moderator and give the floor to the importers, foreignexporters, domestic producers, industrial users of the product investigated and the consumers or their
delegates, in that order.  Each party shall have the floor in turn, twice with respect to the evidence
submitted by the other parties.  At these hearings, the rules of confidentiality laid down in this
resolution must be respected.
The conclusions of the hearing shall be recorded in the minutes which shall be signed by the
Head of the Trade Practices and Safeguards Division and by the parties involved.
ARTICLE 33.   On-the-spot investigations:  The investigating authority is authorized to
visit offices or premises where information relating to the case is to be found to check and verify thecontents of the documentation and the evidence submitted in the course of the investigation.
These visits shall include trips to domestic producers and importers, and in cases identified by
COMEXI, to producers and exporters from the country of origin or export of the products underG/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 19
investigation, for the purpose of verifying the content and truthfulness of the information furnished by
the parties, provided that the enterprises investig ated or the interested parties agree thereto.  The
enterprises of the exporting country concerned shall be given no less than 20 working days notice ofthe visit, together with details of the information to be verified.  If agreement cannot be obtained, the
investigating authority shall take its decisions on the basis of the best information available.
The results of the on-the-spot investigation must be recorded, in summary form, in minutes
signed by the parties concerned.
ARTICLE 34.   Best information available:  If an interested party refuses access to, or
otherwise does not provide, necessary information within a reasonable period or significantly impedes
the investigation, all decisions in the course of the proceeding shall be taken on the basis of the best
information available.  When the investigating authority requires the participation of the applicant or
any interested party in order to verify informat ion provided for the investigation in good time and
proper form, it shall inform him thereof in advance.  If he does not agree to verification, theinformation provided by the other party shall be deem ed to be correct, unless there is evidence to the
contrary.
During the investigation period any interested party may submit its arguments, together with
evidence which, in its opinion, supports those arguments.
ARTICLE 35.   Negligible imports and de minimis conditions:  For the purposes of
Articles 22 and 26 , the following criteria shall be taken into account:
1. In the case of dumped imports, the volume shall be regarded as negligible if:
The volume of dumped imports from a particular country accounts for less than 3 per
cent of total imports of that product;
The volume of dumped imports from countries which individually account for less
than 3 per cent of the imports of the like product collectively represents less than
7 per cent of those imports.
2. In the case of subsidized imports, the volume shall be regarded as negligible if:
The volume of subsidized imports from a particular developed country accounts for
less than 3 per cent of the total imports of that product;
The volume of subsidized imports from developed countries which individually
account for less than 3 per cent of imports of the like product collectively represents
less than 7 per cent of those imports;
The volume of subsidized imports from a particular developing country accounts for
less than 4 per cent of total imports of that product;
The volume of imports from developing countries which individually account for less
than 4 per cent of imports of a like product collectively represents less than 9 per cent
of those imports.
3. A margin of dumping of less than 2 per cent, expressed as a percentage of the export
price, shall be regarded as de minimis .G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 20
4. Subsidies granted to the investigated product shall be regarded as de minimis  if their
global level calculated on a per unit basis is less than:
- 1 per cent of the value of the product in the case of imports originating in
developed countries;
- 2 per cent in the case of imports originating in developing countries;
- 3 per cent in the case of imports originating in the developing countries
referred to in Article 27.11 of the Agreement on Subsidies and Countervailing
Measures of the World Trade Organization.
SECTION V
MUTUALLY AGREED SOLUTIONS
ARTICLE 36.   Price undertakings:  The competent authorities of the country of origin or
export or the producers or exporters may express, th rough the investigating authority, their intention
to eliminate or limit the subsidy, revise the export prices or cease exports to Ecuador, as appropriate,
so that the injury caused to the domestic producers is removed.
The investigating authority cannot force exporters to enter into price undertakings.The investigating authority may also propose to the interested parties that they submit
statements of intent.
The exporters shall submit periodically information relevant to the fulfilment of undertakings
accepted.
Price undertakings shall not be sought or accepted unless the investigating authority has made
a preliminary affirmative determination of dumping or subsidization and of injury caused by such
practices.  In the case of subsidies, the consent of the authorities of the exporting country shall be
required with respect to undertakings from exporters.
ARTICLE 37.   Content of statements of intent:  The statements of intent must provide the
necessary information and expressly authorize the investigating authority to carry out on-the-spot
investigations to verify that the undertakings are being respected.
ARTICLE 38.   Procedure with respect to statements of intent:  When statements of intent
are submitted, the investigating authority shall info rm the interested parties of their contents.
To this end, the investigating authority sha ll make available to the parties the documents
containing the proposals submitted for a period of five working days from the date of notification.
When this period has expired, the parties shall have an equal period to submit their comments in
writing.
At the end of this period, COMEXI, on the basis of the technical report submitted by MICIP,
shall accept or reject the offers, in accordance with the country's best interests.
If a statement of intent is accepted, COMEXI shall issue a reasoned resolution empowering
the investigating authority, in the event of non-fulfilment, immediately to re-establish the collection of
provisional duties, where appropriate, and to continue the investigation proceeding.G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 21
The resolution accepting a statement of intent shall be published in the Official Register and
notified to the interested parties.
Statements of intent submitted more than 20 working days after the date of the preliminary
determination shall not be accepted.
The investigating authority may periodically re view the undertakings given, either ex officio
or upon application of a party.
Article 39.   Conciliation meetings:   Up to 15 working days before the expiry of the period
for completing the investigation, the interested part ies may request the investigating authority to hold
a conciliation meeting at which formulas for settling the dispute may be proposed.  If the formulas
proposed are acceptable, the investigating authority shall adopt them by means of a resolution and
terminate the investigation.
The corresponding resolution shall be published in the Official Register and notified to the
interested parties.
Requests for conciliation meetings received more than 20 working days from the date of the
preliminary determination shall not be considered.
SECTION VI
CLOSURE OF THE INVESTIGATION AND
IMPOSITION OF DEFINITIVE DUTIES
ARTICLE 40.  Concluding arguments:   Up to ten working days before the expiry of the
period determined in Article 27 for the investigatin g authority to terminate the investigation, the
interested parties may submit written arguments that support their case.
Once this period has expired, no further reports, documents or evidence may be introduced.
The investigating authority shal l give the interested parties ten working days' notice of the
expiry of the period for the submission of arguments.
ARTICLE 41.   Termination of the investigation:  Once the period for concluding
arguments has expired and before the expiry of the investigation period, the investigating authority,on the basis of the evidence and information in the file, shall draw up the conclusions of the
investigation and submit them to COMEXI for decision.
The definitive decision adopted by COMEXI shall consist of:
- The imposition of anti-dumping or countervailing measures and the determination of
their amount;
- the withdrawal of the provisional measures;  and/or
- the termination of the investigation without the imposition of anti-dumping or
countervailing measures.G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 22
COMEXI shall have a maximum of 15 working days  from the receipt of the report to adopt a
definitive decision.
ARTICLE 42.   Implementation of the COMEXI resolution:  The decision adopted by
COMEXI shall be notified by the Ministry of Fo reign Trade, Industrialization and Fisheries to the
Ecuadorian Customs Corporation, for information and implementation.
The investigating authority shall provide opportunities for industrial users of the product
under investigation, and for representative consumer organizations in cases where the product is
commonly sold at retail level, to provide any in formation which is relevant to the investigation
regarding dumping, injury and causality.  The authorities shall take due account of any difficulties
experienced by interested parties, in particular  small companies, in s upplying the information
requested, and shall provide any assistance practicable.
The resolution should contain:(a) The issues of fact and law on which the decision was based;(b) the names of the suppliers, or when this is impracticable, the supplying countries
involved;
(c) a description of the product concerned by the measure;(d) the margins of dumping established and a full explanation of the reasons for the
methodology used in the establishment and comparison of the export price and thenormal value;
(e) considerations relevant to the injury determination;  and,(f) the duration of the definitive measure.Where a decision is made to adopt a definitive measure, the period of application of any
provisional measure shall be counted as part of the total duration of the measure.
The resolution shall be published in the Official Register and notified to the interested parties
within five working days of publication.
CHAPTER V
DEFINITIVE DUTIES
ARTICLE 43.   Amount:  If, once the investigation has been completed, it is determined that
definitive anti-dumping or countervailing duties should be imposed, the corresponding decision shallspecify their amount, whether equal to or less than the margin of dumping or the subsidy, according to
what is necessary or sufficient to remove the injury or threat thereof.
The duties shall be assessed in monetary units or ad valorem percentages.
ARTICLE 44.   Retroactive application of duties:   The retroactive application of definitive
duties may be ordered in the following cases:G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 23
On massive imports entered between the date of initiation of the investigation and the date of
application of provisional duties, subject to a maximum of 90 working days.  The existence of
massive imports shall be determined by taking into account import trends during the above-mentionedperiod as compared with the trend over a period of three years prior to the date of initiation of the
investigation or the invitation to hold consultations.  Moreover, in each particular case the size of the
market for the product investigated and other circumstances, such as a rapid build-up of inventories of
the imported product, shall be taken into consideration.
In the case of massive imports envisaged in the previous paragraph, countervailing duties may
be imposed only on products which receive subsidies paid or granted in a manner inconsistent withthe provisions of a WTO Agreement on Subsidies and Countervailing Measures.  Similarly, anti-
dumping duties on massive imports may be imposed when the investigating authority determines for
the dumped product in question that there is a history of dumping which caused injury or that the
importer was, or should have been, aware that th e exporter practised dumping and that such dumping
would cause injury.
On imports entered during the 90 days preceding the establishment of provisional duties, in
the case of non-fulfilment of undertakings given in connection with statements of intent.  The period
of application shall not exceed the duration of the period of non-fulfilment.
ARTICLE 45.   Application and duration of anti-dumping and countervailing duties:
An anti-dumping or countervailing duty shall be automatically eliminated five years after its
imposition, unless, as determined by periodic assessments, the reasons for imposing it still exist.  The
public shall be notified of the maintenance or elimination of the duties through a resolution.
The Ecuadorian Customs Corporation shall apply the duties in accordance with the resolution
imposing them, taking into account the provisions  relating to the collection and the procedures
applicable to the levying of customs duties through a resolution.
In any event, an anti-dumping or countervailing duty shall remain in force only as long as and
to the extent necessary to counteract the dumping or subsidy which is causing injury.
ARTICLE 46.   Review of duties:   After the first year of imposition of definitive duties, the
investigating authority may, ex officio or upon application by an interested party, order the
investigation to be re-opened in order to review the duties, if it considers that the conditions which led
to their being imposed have changed.
The resolution ordering the investigation to be reopened shall be equivalent to that which
initiated the investigation.
Once the investigation has been reopened by means of a resolution, it shall be completed
within a period not exceeding five months.
Such anti-dumping or countervailing duties as have been imposed shall be applied in full until
the investigation is terminated.
ARTICLE 47.  Margin of anti-dumping or countervailing duties: In submitting its
conclusions, the investigating authority shall be responsible for recommending the amount of the
anti-dumping or countervailing duties applicable, taking into account the difference between the
normal value and the export price of the product or the amount of the subsidy, as the case may be, and
the level of injury caused to the domestic industry.G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
Page 24
In no case may the anti-dumping or countervailing duties be greater than the margin of
dumping or the amount of the subsidy.
The decision whether or not to impose an anti-dumping duty in cases where all requirements
for the imposition have been fulfilled, and the de cision whether the amount of the anti-dumping duty
to be imposed shall be the full margin of dumping or less, are decisions to be made by the authorities
of the importing Member.  It is desirable that the imposition be permissive in the territory of all
Members, and that the duty be less than the margin  if such lesser duty would be adequate to remove
the injury to the domestic industry.
ARTICLE 48.  Excess amounts and refunds:  The whole amount paid or the overpayment
shall be refunded to the importer, as promptly as possible, or the security shall be returned or only
partially collected when it is concluded that the margin of the definitive anti-dumping or
countervailing duties should be less than the amount of the provisional duties applied.
Any refunds shall be made by the customs authority in accordance with the procedures
established for that purpose.
If the definitive anti-dumping or countervailing duty is greater than the provisional duty paid
or payable or the amount estimated for the purpose of determining the security, the importer shall not
be required to pay the difference.
When the decision to impose definitive measures is based on the existence of threat of injury
or material retardation (the injury not yet having occurred), definitive anti-dumping or countervailingduties may be established only from date of determination of the existence of threat of injury or
material retardation in the establishment of a domestic industry and the provisional duties shall be
refunded and the corresponding security released.
ARTICLE 49.  Importation:  The application of anti-dumping or countervailing duties shall
not prevent the importation of the goods concerned into Ecuadorian territory.
ARTICLE 50.  Anti-circumvention:   Parts or components intended for assembly or
finishing in Ecuador of a product like to that on which definitive duties are imposed may be subjected
to the payment of provisional or definitive duties if it is shown that this is a form of circumvention of
the duties imposed on the product.
TITLE IV
SAFEGUARD MEASURES
CHAPTER 1
THE INVESTIGATION
SECTION 1
CONDITIONS OF APPLICATION
ARTICLE 51.  Application:   The investigating authority may apply a provisional or
definitive safeguard measure to a product or group of products only if it has determined, as a result of
an investigation, that the product or group of products is being imported into national territory in such
increased quantities, absolute or relative to domestic production, and under such conditions as toG/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
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cause or threaten to cause serious injury to the domestic industry that produces like or directly
competitive products.
Safeguard measures shall be applied to the product imported irrespective of its source.
SECTION II
APPLICATION TO INITIATE AN INVESTIGATION
ARTICLE 52.  Application requirements: The application for the imposition of safeguard
measures shall contain the following requirements:
1. A description of the like or directly competitive product.2. The names and addresses of the companies or bodies represented in the application.
3. The proportion of domestic production of the like or directly competitive product
represented by those companies and the grounds for their representative status on
behalf of the domestic industry.
4. Import data for the previous three calendar years or another period adequately
justified as  representative for the industry, which show the increase in the imports
under investigation in absolute terms or relative to domestic production.  Such
information shall as far as possible be submitted on a monthly basis.
5. Data on the volume and value of domestic production of the like or directly
competitive product for the previous three calendar years or another period
adequately justified as representative for the industry.  Such information shall as far
as possible be submitted on a monthly basis.
6. Quantitative data indicating the degree of  serious injury or threat thereof to the
domestic industry for the period referred to in the previous paragraph, including the
following:
(a)   With regard to serious injury:
(i) A significant idling of installed production capacity in the domestic
industry, including data on the closure of plants or the underutilisation of production capacity;
(ii) The inability of a significant number of domestic firms to carry out
production activities at a reasonable level of profit;
(iii) Level of unemployment actually or potentially generated; and
(iv) Changes in the level of prices, production, productivity and sales.
(b)   With regard to the threat of serious injury:
(i) Evidence of an increase or imminent increase in imports in such
quantities and under such conditions as to threaten to cause serious
injury to the domestic industry;G/ADP/N/1/ECU/2
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(ii) A decline in sales or market share, a higher and growing inventory
(whether maintained by domestic producers, importers, wholesales or
retailers), and a downward trend in production, profits, wages,productivity or employment (or growing under-employment) in the
domestic industry;
(iii) The extent to which firms in the domestic industry are unable to
generate adequate capital to finance the modernization of their
domestic plants and equipment, or are unable to maintain existing
levels of expenditure for research and development;
(iv) The extent to which imports are being diverted to the Ecuadorian
market owing to restraints in the markets of third countries or
seasonal surpluses at source or points of origin.
7. Causal link:  An explanation and description of the presumed causes of the injury or threat
thereof and the extent to which such injury is attr ibutable to the imports under investigation, based on
the relevant data, and an explanation demonstrating that the injury or threat thereof cannot beattributed to causes other than imports.
8. Presentation of an economic report which quantifies the impact of the measure requested on
the final and intermediate consumers of the product concerned, and on the public interest.
9. If critical circumstances are alleged, data on the following factors:
(a) The factual grounds which serve to demonstrate that the increased imports of the
product under investigation are causing or threatening to cause serious injury, and
that any delay in taking measures would cause damage to the industry, which it would
be difficult to repair.
(b) A declaration specifying the level of the provisional measure requested and the
underlying justification for that remedy.
CHAPTER TWO
PROCEDURE
SECTION I
INITIATION OF THE PROCEEDING
ARTICLE 53.   Investigation proceedings:  Safeguard investigation proceedings shall be
initiated ex officio or upon application by a party.
ARTICLE 54.   Initiation on receipt of an application made by or on behalf of the
domestic industry:  Except for the case provided for in th e following Article, investigations to
determine the existence of an increase in imports in such quantities and under such conditions as to
cause or to threaten to cause serious injury to domestic industry, shall be initiated upon a written
application addressed in the original and one copy to the Trade Directorate of the Ministry of Foreign
Trade, Industrialization and Fisheries by a company or group of companies which represent a major
proportion of the total domestic production of the product under investigation, in accordance with theprovisions of the chapter on definitions of these Rules and Procedures.G/ADP/N/1/ECU/2
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ARTICLE 55.   Initiation ex officio:  In exceptional circumstances, the investigating
authority may initiate the investigation ex officio, provided that it is in the national interest and
subject to the requirement of evidence that the do mestic industry affected is unable to submit the
necessary application.  In such cases there must be adequate evidence that increased imports, in
absolute or relative terms, are causing or threaten ing to cause serious injury to the domestic industry.
SECTION II
EVALUATION OF THE APPLICATION AND
INITIATION OF THE INVESTIGATION
ARTICLE 56.   Receipt and evaluation of the application:  Within a non-extendable
period of 15 working days from the date of submission of the application, the investigating authority
may:
(a) Accept the application and decide to initiate the investigation, by means of a
corresponding resolution, or
(b) Allow the applicant fifteen (15) working days in which to submit the duly completed
forms with the relevant documents demonstr ating that the information is suitable, as
well as the other requirements stipulated in Article 52 above.  This period shall becalculated from the day following the corresponding request and may be extended, at
the request of a party, for a further 15 working days.
Once the forms have been submitted and the other requirements have been met, the
investigating authority shall have a period of 15 working days in which to take adecision.
This request shall interrupt the period established in Article 61, which shall
recommence when the applicant provides the information requested.
Where it is not appropriate to initiate an investigation, this shall be so stated in a
reasoned resolution, which shall be notified to the applicant within five working daysfollowing the date of issue.  Appeals agains t such a resolution may be lodged with the
corresponding court of law.
(c) If, after a period of 45 days from the request for further information, the forms have
not been submitted and the other requirements have not been met in their entirety, theinvestigating authority shall deem the appl icant to have withdrawn the application,
the application shall be shelved, and the applicant so notified.
ARTICLE 57.   Acceptance of the applicatio n and initiation of the investigation:
Immediately after an investigation has been initia ted, the investigating authority shall notify the
governments of the countries whose exports could be affected by the application of a possible
safeguard measure so that they may submit evidence and state their opinions.
The MICIP Under-Secretary for Foreign Trade and Integration shall declare that it is
appropriate to initiate an investigation, in a resolution that indicates the de facto and  de jure  reasons
for the decision.G/ADP/N/1/ECU/2
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Nevertheless, the investigating authority may apply provisional safeguard measures, in
accordance with the provisions of the WTO Agreement on Safeguards and these Rules and
Procedures.
ARTICLE 58.   Content:  The resolution initiating the investigation shall contain at least the
following:
(a) The identity of the applicant;(b) a detailed description of the imported product or products under investigation,
indicating the tariff subheading;
(c) a description of the domestic like or directly competitive product;(d) the period under investigation;(e) the time-limits for the determination or submission of documents;  and,(f) the name(s) of the exporting country or countries and the necessary information to
ensure accurate identification of the product concerned and its origin.
ARTICLE 59.   Information:   The investigating authority may request the data it deems
relevant for the fulfilment of its task directly from the interested parties, the Central Bank of Ecuador,
the Ecuadorian Customs Corporation, inspection a nd other public or private sector companies and
bodies, which must provide the information concerned within the time-limits granted for the purpose.
When the information requested by the investig ating authority is not provided within the
time-limits laid down in these rules and procedures, or when the investigation is seriously impeded,
findings may be made on the basis of the available data.  If the investigating authority finds that an
interested party has supplied it with false or misleading information, it shall disregard such
information and may use the data available.
Information received pursuant to the regula tions which follow may be used only for the
purpose for which it was requested.
ARTICLE 60.   The investigation period:  The investigating authority shall have a period of
three months to conclude the investigation.  This period shall be non-extendable and shall becalculated from the date of publication of the resolution to initiate the investigation in the Official
Register.
.
SECTION III
CONFIDENTIALITY
ARTICLE 61.   Confidential Information:  Any confidential information submitted by the
parties in an investigation concerning the application of safeguard measures shall be treated as such
by the investigating authority, upon cause being shown, and shall not be disclosed without the express
consent of the party submitting it.
Information shall be considered confidential if its disclosure or publication might injure the
competitive position of the enterprise concerned or have a significantly adverse effect upon the person
supplying the information or if it is provided on a confidential basis.  A separate file, which may beG/ADP/N/1/ECU/2
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inspected only by the investigating authority, shal l be opened for confidential information provided by
the applicant or other interested parties.
When confidential information is introduced in to the investigation, the investigating authority
shall invite the parties which have supplied that information to provide non-confidential summaries
thereof in sufficient detail to permit a reasonable  understanding of the substance of the information
submitted in confidence or, if they state that the information in question cannot be summarized, to
explain the reasons why this is impossible.
ARTICLE 62.   Access to information:  If the authorities find that a request for
confidentiality is not warranted and if the party concerned is either unwilling to make the information
public or to authorize its disclosure in generalized or summary form, the authorities may disregard
such information unless it can be demonstrated to their satisfaction from appropriate sources that the
information is correct.
The interested parties identified as such by th e investigating authority and the representatives
of  exporting countries may have access to any information gathered during the investigation, except
that of a confidential nature.
SECTION IV
ANALYSIS OF INJURY
ARTICLE 63.   Factors:  In the investigation to determine whether increased imports of a
particular product or group of products have caused or are threatening to cause serious injury to the
domestic industry producing like products, all relevant factors of an objective and quantifiable naturehaving a bearing on the situation of that industry shall be taken into account, in particular:
(a) The rates and amounts of the increase in imports of the product concerned, in
absolute terms and in relation to domestic production and consumption;
(b) the share of the domestic market taken by increased imports;
(c) the price of the imports, especially in order to determine if there has been a
significant underpricing in relation to the price of the like or directly competitive
domestic product;
(d) a review of the impact on the domestic industry of the like or directly competitive
products, evidenced by changes in the level of sales, production, productivity,
capacity utilization, profits and losses, and employment;  and,
(e) other factors that, although not related to the evolution of imports, have a causal
relationship with the injury or threat thereof to the domestic industry in question.
ARTICLE 64.   Examination:  When there is an alleged threat of serious injury, the
investigating authority shall examine whether it is clearly predictable that the case should become one
of serious injury, taking into account the data concerning the domestic industry indicated in
Article 53.6(b), as well as the amount and rate of the increase in exports to Ecuador in absolute andrelative terms, the existing or potential export capacity of the producing countries or countries of
origin, and the probability that the resulting exports of that capacity will arrive on the Ecuadorian
market.G/ADP/N/1/ECU/2
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ARTICLE 65.   Determination:  A determination of serious injury or threat thereof shall be
based on objective evidence that demonstrates the existence of a causal relationship between the
increase in imports of the product under investigation and the alleged serious injury or threat thereof.
When factors other than increased imports are causing injury to the domestic industry at the
same time, such injury shall not be attributed to increased imports.
ARTICLE 66.   Report:  For the preliminary or definitive determination of serious injury or
threat thereof, the investigating authority shall prepare a technical report containing all relevant
factors of an objective and quantifiable nature, as well as an assessment or estimation of the possibleeffects of the application of a provisional or, where appropriate, definitive measure.
Once it has been determined whether or not a serious injury or threat thereof  has been caused
by the increased imports, the investigating authorit y shall submit copies of that determination and
corresponding technical report to the Committee on Safeguards of the WTO.
ARTICLE 67.   Content:  The determination of whether or not there has been serious injury
or a threat thereof should contain:
(a) A description of the product concerned;(b) a detailed analysis of the case under investigation, which may consist of a summary
of the technical report, excluding confidential information;
(c) the names of the companies which constitute the domestic industry;(d) considerations relating to the methodology used for the determination of the existence
of serious injury or threat thereof;
(e) the factual and legal basis for the determination;  and,(f) a reasoned statement concerning the relevance of the factors examined.
SECTION V
APPLICATION OF SAFEGUARD MEASURES
ARTICLE 68.   Safeguard measures:  Provisional and definitive safeguard measures shall
be applied only to the extent and for such period of time as may be necessary to prevent or remedy
serious injury and to facilitate adjustment.
ARTICLE 69.   Percentage:  Safeguard measures shall not be applied against a product
originating in a developing country Member of the WT O as long as its share of imports of the product
concerned in Ecuador does not exceed 3 per cent, provided that developing country Members of the
WTO with less than 3 per cent import share collectivel y account for not more than 9 per cent of total
imports of the product concerned.
ARTICLE 70.   Measures:   Safeguard measures shall preferably consist of the application
of an ad valorem  tariff;  only where measures of this nature are inappropriate shall specific tariffs or
quantitative restrictions be applied.G/ADP/N/1/ECU/2
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ARTICLE 71.   Restriction:  If a safeguard measure involves the application of a
quantitative restriction, through the establishment of a maximum import quota or entitlement, such
quota or entitlement shall on no account be lower than the average level of imports of the productconcerned over the last three calendar years proceeding the year in which the investigation was
initiated, unless clear cause is shown of the need to set a different level in order to remedy or prevent
serious injury or the threat thereof, as the case may be.
The above-mentioned quotas shall be allocated among supplying countries in accordance with
the provisions of Article 5.2 of the Agreement on Safeguards of GATT 1994.
SECTION VI
PROVISIONAL SAFEGUARD MEASURES
ARTICLE 72.   Provisional measures:  During the investigation and in critical
circumstances where delay would cause serious injury, a provisional safeguard measure may beapplied.  In such cases, the investigating authority shall prepare a preliminary technical report
containing all relevant factors of an objective and quantifiable nature which permit an assessment of
the appropriateness of the application of a measure and its possible impact on the domestic market.
The preliminary report shall be based on the existence of clear evidence that increased
imports have caused or are threatening to cause serious injury to the domestic industry and shall be
submitted with a corresponding recommendation to COMEXI for approval.
The provisional measure must be adopted by a COMEXI resolution within fifteen (15)
working days of the date on which the investigating authority submits its recommendation.
ARTICLE 73.   Resolution:   The resolution adopting a provisional safeguard measure
should contain:
(a) A determination as to the increase in imports, in absolute and relative terms;(b) a description of the product to which the measure applies;(c) a list of the producers which constitute the domestic industry;(d) a preliminary determination as to the ex istence of clear evidence that the increased
imports are the cause of serious injury or threat thereof, including an account of theeconomic factors analysed for the purpose of the determination;
(e) the level of the provisional safeguard measure, i.e. the amount of the tariff increase;
and,
(f) the duration of the provisional measure.
In the event that it is decided not to adopt a provisional measure, the corresponding resolution
shall contain the issues of fact and law on which COMEXI based its decision.
ARTICLE 74.   Duration:  Provisional safeguard measures shall have a maximum duration
of 200 days and may be suspended before the date of expiry only if a definitive resolution is issued.G/ADP/N/1/ECU/2
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When it is decided to adopt a definitive safeguard measure, the period of application of any
provisional measure shall be counted as part of the total period of duration of the measure.
Within 30 days from the publication of the decisi on to initiate an investigation, the applicant
shall submit a duly substantiated plan for the adjustment of the domestic industry to competition from
imports, in accordance with the aims it is wished to achieve through imposition of the measure, as
described in the application.
ARTICLE 75.   Amount:  The amount of a provisional safeguard measure shall be paid or
guaranteed for payment by the importer, by cash deposit or bond.
When the amount of a definitive safeguard measure is higher than that of a provisional
safeguard measure that has been paid or guaranteed, the excess shall not be payable.  Conversely,
provisional duties collected in an amount higher than that fixed for a definitive measure shall be
refunded.
In the event that no definitive safeguard measure is established, reimbursement of the full
amount paid shall be ordered promptly, or the security given for the amount of the provisional duties
imposed shall be refunded to the importers.
SECTION VII
DEFINITIVE SAFEGUARD MEASURES
ARTICLE 76.   Definitive safeguards:  In order for a determination to be reached
concerning the imposition of definitive safeguard measures, the investigating authority shall submit toCOMEXI the corresponding technical report on the serious injury caused or threatened by the
increased imports, so that the latter may approve the application of safeguard measures and the
amount of such measures.
ARTICLE 77.   Resolution:  The COMEXI resolution approving a definitive safeguard
measure should contain:
(a) A determination as to the increase in imports, in absolute or relative terms;
(b) a description of the product to which the measure applies;(c) a list of the producers constituting the domestic industry;(d) a definitive determination as to the existence of clear evidence that the increased
imports have caused serious injury or threat thereof, including an explanatory account
of the economicfactors analysed for the purpose of such a determination;
(e) the level of the definitive safeguard measure, i.e. the amount of the tariff increase;
(f) the planned duration of the definitive measure;(g) the adjustment plan submitted by the applicant firms;(h) the timetable for progressive liberalization of the measure, in the case of measures of
a total duration of over one year, including any period of provisional application;
and,G/ADP/N/1/ECU/2
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(i) an assessment as to the appropriateness of the measure in relation to the public
interest.
If it is decided not to adopt a definitive measure, the resolution shall contain the issues of fact
and law on which COMEXI based its decision.
In both cases, COMEXI shall adopt the corr esponding resolution within 15 working days
from the date that the investigating authority submits its recommendation.
SECTION VIII
CONSULTATIONS, PUBLICATIONS AND NOTIFICATIONS
ARTICLE 78.   Consultations:  As soon as a provisional measure is adopted and before
imposing or extending a definitive safeguard measure, the investigating authority shall provide
adequate opportunity for consultations to be held between the interested parties.
Such consultations shall be, inter alia , to examine the information supplied in notifications to
the Committee on Safeguards, to exchange views on the measure and to reach an understanding on
how to achieve the objective of maintaining the level of Ecuador's concessions and other obligations
under GATT 1994.
ARTICLE 79.   Concessions:  When applying safeguard measures or extending their
duration, the Government of Ecuador shall endeavour to maintain a substantially equivalent level of
concessions and other obligations to that existing under GATT 1994 between Ecuador and the
exporting Members which would be affected be such measures.
(a) For the purposes of this Article, agreements may be made, through the consultations
referred to in the previous Article, regarding any adequate means of trade
compensation for the adverse effects of the safeguard measures on trade.
(b) When taking a decision to introduce a safeguard measure, the Ecuadorian
Government shall also consider the fact that, in governments cases where noagreement is reached concerning adequate compensation, the interested governments
may, under the terms of the Agreement on Safeguards of GATT 1994, suspend
substantially equivalent concessions, as long as such suspension is not disapproved of
by the WTO Council for Trade in Goods.
(c) The right to suspend equivalent concessions shall not be exercised for the first three
years that a safeguard measure is in effect, provided that it has been adopted as a
result of an absolute increase in imports.
ARTICLE 80.   Publications:  If it is deemed appropriate to initiate an investigation, the
investigating authority shall publish in the Official Register the resolution initiating the investigation
issued by the MICIP Under-Secretary for Foreign Trade and Integration.
The same procedure shall be followed when the investigating authority establishes provisional
and definitive measures.
The resolutions shall also be published in a newspaper with a broad circulation in Ecuador,
for the information of all the interested parties.G/ADP/N/1/ECU/2
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The investigating authority shall have a period of ten working days from the date of the
resolution initiating the investigation and the application of provisional or definitive measures, for
publication and notification.
Unless a decision has been made to initiate an investigation, the authorities shall avoid any
publicizing of the application for an investigation to be initiated.
ARTICLE 81.   Notifications:  The investigating authority shall make the following
notifications:
To the Government of the exporting country through its respective diplomatic representation:
(a) Once the application has been accepted and before the initiation of an investigation;
(b) once a provisional measure has been adopted;(c) as soon as a definitive measure has been adopted or extended.
To the interested parties:
(a) Once the application has been accep ted and an investigation initiated;
(b) once a provisional measure has been adopted;(c) as soon as a definitive measure has been adopted or extended.
To the Committee on Safeguards of the WTO:
(a) Once an investigation has been initiated;
(b) once a preliminary measure has been adopted;
(c) as soon as a definitive measure has been adopted or extended;
(d) with regard to the result of any consultations held, including any compensation
granted, if applicable.
To the Ecuadorian Customs Corporation:
As soon as the resolution for the application or extension of provisional or definitive
safeguard measures has been issued and published, for the corresponding implementation.
All notifications to the Council for Trade in  Goods shall usually be made through the
Committee on Safeguards.
ARTICLE 82.   Notifications:  When there is a proposal to apply or extend a safeguard
measure, the Committee on Safeguards shall be provided with all relevant information, including:
- Evidence of the serious injury or threat thereof;- a precise description of the product concerned and the measure proposed;G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
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- the proposed date of introduction of the measure;
- its planned duration;
- the timetable for its progressive liberalization;- in the case of an extension of a measure, evidence shall be provided that the domestic
industry concerned is in the process of readjustment.
SECTION IX
DURATION OF THE SAFEGUARD MEASURES
ARTICLE 83.   Definitive safeguard:  The period of application of definitive safeguard
measures shall not exceed four years, unless they are extended in accordance with the followingparagraph.
The period mentioned in the previous paragraph may be extended provided that the
investigating authority has determined, in accordance with the procedures established in the current
resolution for the conditions of investigations, the existence of serious injury or threat thereof.
ARTICLE 84.   Duration:  The total period of application of a safeguard measure, including
the period of application of any provisional measure, the period of initial application and any
extension thereof, shall not exceed eight years.
ARTICLE 85.   Liberalization:  If the safeguard measure is applied for over one year, it
shall be progressively liberalized, at regular intervals, during the period of application.
SECTION X
MONITORING AND REVOCATION OF SAFEGUARD MEASURES
ARTICLE 86.   Revocation:  The investigating authority shall request information on a
regular basis from the company or sector protected by the safeguard measure concerning the evolution
of production and sales and whether they have begun to recover, in order to determine whether the
measure should be revoked.
SECTION XI
EXTENSION OF SAFEGUARD MEASURES
ARTICLE 87.   Extension:   A safeguard measure may be extended ex officio or at the
request of a party no less than two months before expiry of the period prescribed for the initial
measure.  To that end the procedure provided for the adoption of the original measure shall befollowed.
Safeguard measures may be extended once only for a period of no longer than four years.ARTICLE 88.   Approval:  A safeguard measure may be extended provided that the
investigating authority has determined, in accordance with the procedures established in the articles
concerning conditions, investigation, determination of serious injury or threat thereof and application
of safeguard measures of the WTO Agreement on Safeguards, that the safeguard measure continues to
be necessary to prevent or remedy serious injury and that there is evidence that the industry isG/ADP/N/1/ECU/2
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undergoing a process of adjustment, and provided that the relevant provisions of the articles
concerning the level of concessions and other obligations, notification and consultation of the same
Agreement are complied with.
ARTICLE 89.   Progressive liberalization:  Measures which are extended  shall not be
more restrictive than those in force at the end of the initial period, and the progressive liberalization
considered appropriate in relation to the adjust ment plan shall be continued during the period of
extension.
SECTION XII
RENEWED APPLICATION OF A SAFEGUARD MEASURE
ARTICLE 90.   Prohibition:  No new measure may be applied to the same product before
two years have elapsed since the end of the duration of a safeguard measure.
If the safeguard measure has been applied for a period of over four years, the prohibition
contained in the previous paragraph shall apply after a period equal to half the period of its duration
has elapsed.
ARTICLE 91.   Renewed application:  Notwithstanding the provisions of the preceding
Article, safeguard measures of a duration not excee ding 180 days may be applied again to imports of
the same product in cases where:
(a) At least one year has elapsed since the date of introduction of the safeguard measure
on the import of the product concerned;
(b) such a measure has not been applied on the same product more than twice in the
five-year period immediately preceding the date of introduction of the safeguard
measure.
ARTICLE 92.   Review of measures:  The investigating authority, ex officio, or upon
application by an interested party, may reopen the investigation in order to review the definitivemeasures, if it considers that the conditions which led to their being imposed have changed.
When an investigation has been reopened, the procedures concerning investigations and the
adoption of measures laid down in this instrument shall be followed.
ARTICLE 93.   Agricultural products:  In any stage of the investigation process, the
investigating authority may set up inter-institut ional working parties with the participation of
representatives of the public and private sectors, as required and according to the nature of the product
investigated.
ARTICLE 94.   Working parties:  All public sector entities shall supply, in good time, any
information or documentation requested by the investigating authority for the purpose of acquiring
data needed to conduct an unfair practices or safeguard investigation.
ARTICLE 95.   Forms:  To facilitate the submission  of information and the corresponding
documentation for the interested parties, the investig ating authority shall prepare three types of forms
to be issued to domestic producers and importers and to foreign exporters of the product under
investigation, in the following order:G/ADP/N/1/ECU/2
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(a) To domestic producers before the application is submitted or after the application has
been submitted without attaching the respective forms;
(b) to domestic importers and to foreign exporters once the application has been accepted
and the resolution to initiate an  investigation has been issued.
All the information on volume and values subm itted to the investigating authority by the
applicant enterprise shall pertain to the previous three years and to the part of the current year of the
investigation that has elapsed so far.
The forms, duly completed and with the relevant documents demonstrating that the
information is suitable, shall be transmitted to the investigating authority within 30 working days from
the dates of issue.
The period for returning the forms may, at the request of an interested party, be extended by
the investigating authority for 30 working days, provided there is good reason and wherever
practicable.
TITLE V
APPLICATIONS TO THE ANDEAN COMMUNITY
ARTICLE 96.   Applications submitted in ac cordance with the arrangements of the
Andean Community:  Any application to be submitted to the General Secretariat of the Andean
Community for the initiation of an investigation and the application of anti-dumping duties,
countervailing duties or safeguard measures to a product originating in the Andean subregion must bechannelled through the investigating authority of Ecuador, subject to compliance with all the formal
requirements established, for each case, in this Resolution.
ARTICLE 97.   Acceptance for processing: Within eight working days of receiving the
corresponding documentation, the investigating author ity shall verify compliance with the application
requirements and, if these have been met, shall immediately transmit the file to the General Secretariat
of the Andean Community.  If the application does not meet the requirements, it shall be returned tothe applicant for revision.
ARTICLE 98.   Implementation of the measure:  Once the final result of the investigation
by the General Secretariat of the Andean Community  is known, the Ministry of Foreign Trade shall
notify the Ecuadorian Customs Corporation for implementation of the measure, if the GeneralSecretariat has so determined.
TITLE VI
FINAL PROVISIONS
CHAPTER I
ASSISTANCE FOR INTERESTED PARTIES IN DUMPING, SUBSIDIES AND
SAFEGUARD INVESTIGATIONS
ARTICLE 99.   Assistance for interested parties:  The various departments of Government
shall provide interested parties, especially small businesses, with any collaboration and assistance that
might be useful for the purposes of the investigation.G/ADP/N/1/ECU/2
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CHAPTER II
ASSISTANCE FOR PRODUCERS AND EXPORTERS
ARTICLE 100.   Investigations of Ecuadorian exports for dumping, subsidies or
safeguards:  When an Ecuadorian producer or exporter learns that an investigation of his products for
dumping, subsidies or safeguards has been initiated abroad, he may call upon the investigating
authority of the Ministry of Foreign Trade, Industrialisation and Fisheries for technical and legal
assistance in defending his interests.
The technical and legal assistance shall include guidance and collaboration in obtaining
information, advice on the completion of forms and questionnaires, assistance in the event of on-the-
spot investigations by foreign authorities and, in general, any help which the Ministry of Foreign
Trade, Industrialization and Fisheries, through its investigating authority, is able to provide.
ARTICLE 101.   Report to COMEXI:  If investigations of Ecuadorian products for
dumping, subsidies or safeguards are initiated abroad, the investigatin g authority shall inform
COMEXI on the substantive elements of the investigations, the measures adopted, the producers or
exporters, the results obtained and the current situation.
The investigating authority may set up committees to monitor investigations of Ecuadorian
products for dumping, subsidies or safeguards initiated abroad.
The committees shall consist of representatives of the chambers or associations of the
industry to which the producer or exporter investigated belongs and of the investigating authority.
The committees shall regularly submit reports and recommendations to COMEXI.
CHAPTER III
JUDICIAL REMEDIES
ARTICLE 102.   Action:  Definitive decisions determining whether or not anti-dumping or
countervailing duties should be applied may be challenged in the district administrative courts.
CHAPTER IV
POWERS
ARTICLE 103.   Competent bodies:   For the application of this instrument, the following
powers shall be taken into account:
(a) The department responsible for the administration of unfair trade practices and
safeguards shall :
- Conduct investigations concerning unfair international trade practices and safeguards;- accept or reject applications for dumping, subsidies or safeguard investigations;- evaluate applications for dumping, subsidies or safeguard investigations and decide
on the initiation of investigations;
- carry out preliminary evaluations in investigations concerning dumping, subsidies or
safeguards and propose the application of provisional countervailing duties, where
appropriate;G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
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- communicate, publish and notify all the decisions and resolutions issued in the course
of dumping, subsidies and safeguard investigations or in connection therewith;
- prepare technical studies for consideration by COMEXI;- prepare official forms containing questionnaires;- gather evidence, make on-the-spot investigations and undertake other appropriate
action in its capacity as investigating authority.
(b) The MICIP Director of Trade Operations shall :
- Direct and coordinate the implementation and development of dumping, subsidies
and safeguard investigations;
- submit to COMEXI technical reports on the results of dumping, subsidies or 
safeguard investigations.
(c) The Foreign Trade and Investment Council (COMEXI) shall :
- Impose provisional of definitive countervailing or anti-dumping duties and safeguard 
measures;
- rule on conciliation formulas proposed by the parties.
(d) The Minister of Foreign Trade, Industr ialization and Fisheries (MICIP) shall :
- Accept or reject offers made in statements of intent;- notify to the Ecuadorian Customs Corporation the resolutions adopted by COMEXI 
in connection with the application of anti-dumping or countervailing duties and the application of provisional or definitive safeguards, for appropriate implementation.
(e) The Competent Customs Body shall :
- Apply anti-dumping or countervailing duties and safeguard measures at importation,
in compliance with the resolutions adopted by COMEXI, subject to notification of the
Ministry of Foreign Trade.
FINAL ARTICLE.   Repeal and entry into force:   COMEXI Resolution 0003, published in
Official Register No. 288 of 1 April 1988 is hereby repealed.
The present Resolution shall enter into force from the date of its publication in the Official
Register.G/ADP/N/1/ECU/2
G/SCM/N/1/ECU/2
G/SG/N/1/ECU/3
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FOR PROCLAMATION
Done at Quito, Metropolitan District,
Cristóbal Orrantia Milton Cevallos,
CHAIRMAN, COMEXI SECRETARY
I hereby certify that this Resolution was adopted by COMEXI in ordinary session on Monday,
10 April 2000.
Milton Cevallos
Under-Secretary for Foreign Trade and Integration and
Secretary of COMEXI
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