RESTRICTED
WORLD TRADE G/ADP/AHG/W/38
7April 1998
ORGANIZATION(98-1398)
Committee onAnti-Dumping Practices Original: Spanish
AdHocGroup onImplementation
TOPIC 1*-ARTICLE 6.5"TREATMENT OFCONFIDENTIAL INFORMATION"
TOPIC 2*-PERIOD OFDATA COLLECTION
TOPIC 4*-ARTICLE 5.6"SPECIAL CIRCUMSTANCES"
TOPIC 5*-ARTICLE 5.5"NOTIFICATION TOTHE EXPORTING MEMBER"
TOPIC 6*-ARTICLE 6.2"HEARINGS"
TOPIC 7*-ARTICLE 6.9"DISCLOSURE OFESSENTIAL FACTS"
TOPIC 10*-ARTICLE 9"DUTY ASSESSMENTS"
Paper byVenezuela
Thefollowing communication, dated 11March 1998, hasbeenreceived fromthePermanent
Mission ofVenezuela.
Topic 1*-Article 6.5:Treatment ofConfidential Information
Thepossibility forinterested parties inananti-dumping procedure tofullyexercise theirright
ofdefence depends toagreater orlesser degree ontheiraccess totheinformation submitted bythe
opposingpartiesorobtainedbythecompetentauthority.Atthesametime,theAnti-DumpingAgreement
allows thatcertain information tobedeclared confidential, thuslimiting access thereto. Consequently,
weconsider thatconfidentiality should beunderstood asanexception totheruleofaccess toinformation,
andassuchshould beclearly defined inorder toensure thattheright toconfidentiality isnotused
asameans ofblocking access toinformation, thereby impeding thefullexercise oftherightofdefence
bytheinterested party inquestion.
Although ontheonehand, anillustrative list(ofinformation thatisconfidential bynature)
could clarify matters forthecompetent authorities when issuing theirrulings, itcould alsogiverise
todifferent interpretations andlimitations withrespect tothescope ofconfidentiality.
Forexample, whatgrounds andjustification would berequired inorder todeclare confidential
agiven itemofinformation covered bytheillustrative list?Does themere factthattheinformation
forwhich confidentiality hasbeenrequested iscovered bytheillustrative listmean thatitwarrants
confidential treatment? What would happen ifinspite ofthefactthatinformation forwhich
confidentiality issought iscovered bytheillustrative list,thelevelofaggregation ofthedatacontained
therein issuchastoprevent thedisclosure ofconfidential information?
Inreaching itsmostrecent decisions onconfidentiality, thecompetent authority ofVenezuela
hasapplied more general criteria, avoiding thelimitations thatmight beassociated withanillustrative
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*Seedocument G/ADP/W/401 fordescriptions ofthenumbered topics.G/ADP/AHG/W/38
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listorwithpastpractice indeclaring information confidential bynature. Ithasconsidered confidential
bynature information whose disclosure could reveal elements ofacompany 'stradestrategy orconstitute
asource ofcompetitive advantage, orexpose tradeorbusiness secrets oftheindustry inquestion, and
information supplied bythirdparties ifthelevelofdisaggregation ofsuchinformation disclosed reveals
ormakes itpossible toinferfundamental dataorsecrets ortheidentity oftheperson supplying the
information, according tothecase.
System ofdisclosing confidential information
Venezuela doesnothaveasystem ofdisclosing information declared confidential tocounsel
orrepresentatives oftheinterested parties. Once theinformation isdeclared confidential, itisplaced
inaseparate filetowhich onlytheofficials ofthecompetent authority haveaccess.
Topic 2-Period ofDataCollection
Venezuelan practice
Venezuelan anti-dumping legislation stipulates thatananti-dumping investigation (period of
datacollection) shallnormally lastnolessthansixmonths immediately prior tothedateofinitiation
oftheinvestigation. Here, thecompetent Venezuelan authority applies twoperiods ofdatacollection
inaccordance withthefactstobedetermined. Forthedetermination ofdumping andofthemargin
ofdumping (calculation ofthenormal value andtheexport price, calculation ofadjustments and
comparison ofprices, determination ofthemargin ofdumping, etc.)thecompetent authority hasbeen
using aperiod ofdatacollection ofoneyearimmediately prior tothedateofinitiation ofthe
investigation. Asconcerns thedetermination ofinjury tothedomestic industry forlikegoods and
acausal link(analysis ofthevolume ofimports, ofthebehaviour oftheeconomic andfinancial variables
ofthedomestic industry, theeffect ofimports ondomestic production, etc.)thecompetent authority
hasbeenusing aperiod ofdatacollection ofthree tofouryears. Asarule,theinformation collected
must pertain toaperiod asclose aspossible tothedateofinitiation oftheinvestigation. Inthis
connection thecompetent authority, inreaching afinaldetermination ofdumping andinjury, analyses
themost recent dataobtained during theinvestigation, after itsinitiation. Forexample, foran
investigation initiated during thelastquarter of1997, thefinal determination could alsoinclude
information for1998.
Topic 4-Article 5.6:Special Circumstances
Relationship between Articles 5.4and5.6
Members oftheAdHocGroup havebeenasked tosubmit theircomments ontherelationship
between thepossibility ofinitiating aninvestigation without having received awritten application from
thedomestic industry (Article 5.6: Special circumstances) andtheneedtodetermine thedegree of
support fortheapplication fortheinitiation ofaninvestigation expressed bydomestic producers
(Article 5.4:Degree ofsupport oropposition). Weconsider thatArticle 5.6should beinterpreted
asanexception totheobligation todetermine thedegree ofsupport oropposition, butonlyforthe
purposes ofagreeing ontheinitiation orformal opening oftheinvestigation. Inpractice, thecompetent
authoritymayinitiatetheinvestigationwithoutdeterminingthedegreeofsupportoropposition(providing
ithassufficient evidence ofdumping, injury andacausal linkasstipulated attheendofArticle 5.6),
andsubsequently calluponthedomestic producers toexpress, within agiven time-period, theirsupport
oropposition tothecontinuation oftheinvestigation. Ifthattime-period elapses without thedomestic
producers having expressed support oropposition oriftherequired percentage ofproducers expressly
supporting theinvestigation hasnotbeen attained, thecompetent authority must terminate the
investigation without delay.G/ADP/AHG/W/38
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Roleofthecompetent authority inproviding assistance tothedomestic industry inpreparing applications
Themembers oftheAdHocGroup werealsoasked tocomment ontheroleofthecompetent
authority inproviding assistance tothedomestic industry inpreparing applications. Inviewofthe
factthatthecompetent authority cannot initiate aninvestigation without sufficient evidence ofdumping,
injury andacausal link,itisunlikely thattheauthority would initiate theinvestigation inquestion
exofficio without having previously worked together withthedomestic industry togather thatevidence.
Thedataneeded toprove injury andacausal linkconsists largely ofinformation from thedomestic
industry affected (sales, production, utilized andinstalled capacity, profits, equity participation,
investment, prices, etc.)together withtheofficial information available tothegovernment ofthe
importing member (volume ofimports, share ofthedomestic industry, etc.). Thecompetent authority
mayassist thedomestic industry byproviding theavailable official information andcooperating to
collect andorganize theinformation supplied bydomestic producers. Obtaining information concerning
dumping, however, willbetotally inthehands ofthedomestic producers, andthecompetent authority
willnotbeabletoprovide assistance except inorganizing andprocessing thatinformation.
Wealsoconsider thatthereissomewhat ofacontradiction between thepossibility ofinitiating
aninvestigation "without having received awritten application byoronbehalf ofadomestic industry"
andtheroleofthecompetent authority inproviding thedomestic industry withassistance "inpreparing
theapplication" sincetheoneexcludes theother. Supposing, forexample, thatthecompetent authority
initiates aninvestigation before receiving thewritten application (prepared bythedomestic industry
withtheassistance ofthecompetent authority): howcanthatinvestigation beconsidered tohavebeen
initiated without therequired application? Thus weconsider thattheauthority 'sassistance roleinan
exofficio investigation consists ofsuchhelpasitmayprovide inobtaining thenecessary evidence
tojustify theinitiation oftheinvestigation andnotofassistance tothedomestic industry inpreparing
anapplication. Indeed, iftheauthority were involved inpreparing thewritten application, the
investigation would nolonger beexofficio.
Topic 5-Article 5.5:Notification ofExporting Member
When should thenotification takeplace?
TosituatethemomentatwhichtheVenezuelanauthoritynotifiesthegovernmentoftheexporting
member ofthe"receipt ofaproperly documented application" itisimportant toexamine theinitial
stageoftheprocedure inquestion. Theformal opening oftheinvestigation istheactordecision whereby
theAnti-Dumping andSubsidies Commission agrees ontheinitiation ofananti-dumping investigation
procedure. Upon receiving anapplication foraninvestigation, theTechnical Secretariat (verificatory
bodyoftheCommission) examines ittodetermine whether itisproperly documented. Theexamination
concerns onlyformal aspects; inother words, theTechnical Secretariat limits itself todetermining
whether theapplication contains theinformation andevidence required under therelevant regulations.
Ifso,theTechnical Secretariat accepts theapplication andtransmits ittotheCommission, which decides
within 10working dayswhether toinitiate aninvestigation. TheCommission, andnottheTechnical
Secretariat, examines theaccuracy andrelevance oftheevidence submitted and,where appropriate,
agrees toinitiate aninvestigation onthegrounds thatthereissufficient evidence tojustify suchinitiation.
Inother words:
(i) TheTechnical Secretariat onlydecides ontheformal aspects oftheapplication, while
theCommission decides onmatters ofsubstance;
(ii) theacceptance ofanapplication bytheTechnical Secretariat doesnotimply thatan
investigation willbeinitiated; andG/ADP/AHG/W/38
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(iii) theacceptance ofanapplication bytheTechnical Secretariat isnotbinding forthe
Commission, which maydecide nottoopenaninvestigation inspiteofsuchacceptance.
Inviewofthese considerations, itcanbesaidthattheobligation tonotify thegovernment of
theexporting member ofthe"receipt ofaproperly documented application" mustbefulfilled bythe
Technical Secretariat oftheAnti-Dumping andSubsidies Commission ofVenezuela aftertheacceptance
oftheapplication (when theTechnical Secretariat considers thattheapplication isproperly documented)
andbefore theCommission agrees totheformal opening oftheinvestigation (i.e.approximately
10working daysafteracceptance). Thus, theVenezuelan authority would beinaposition tonotify
thegovernment oftheexporting member, asithasbeendoing, ofthe"receipt ofaproperly documented
application" 10working daysprior totheformal opening oftheinvestigation.
Towhom must thenotification bemade?
Thenotification under Article 5.5ismade bythecompetent authority ofVenezuela tothe
exporting member 'saccredited diplomatic representation inthecountry.
Content ofthenotification
Thenotification tothegovernment oftheexporting member ofthe"receipt ofaproperly
documented application" mustcontain, atleast, alloftheinformation needed fortheexporting enterprise
orenterprises against whom thecomplaint hasbeenfiledtoidentify theproduct forwhich theinitiation
ofaninvestigation hasbeenrequested andthetimerequired foradecision regarding theinitiation of
aninvestigation, aswellasthedataneeded tocontact thecompetent authority.
Document G/ADP/AHG/W/33 submitted byNorway
With respect tothepreliminary conclusions ofNorway onthenotification tothegovernment
oftheexporting member of"thereceipt ofaproperly documented application foraninvestigation",
wefullyagree withtheirinterpretation according towhich thesecond partofArticle 5.5isanexception
totheruleofavoiding anypublicizing oftheapplication. Wealsoconsider thatArticle 12.1refers
tothenotification tobemade bythecompetent authority oncetheinvestigation hasbeeninitiated or
formally opened, while notification under Article 5.5musttakeplace prior totheformal opening of
theinvestigation.
Topic 6:Article 6.2,Hearings
Venezuelan anti-dumping lawstipulates thattheinterested parties mayholdhearings before
thecompetent authority inorder toenable themtopresent theiropposing views andpossible rebuttals.
Suchhearingsmaybeproposedbytheinterestedpartiesorbythecompetentauthority,andareconducted
attheheadquarters ofthecompetent authority during theperiod ofthepreparatory enquiry. Inmost
cases, hearings havebeenheldattheproposal ofthecompetent authority. However, noneoftheparties
areobliged toattend suchmeetings andtheirabsence isnotdetrimental totheircase. Thecompetent
authority agrees theplace anddateofsuchhearings withtheinterested parties inadvance, andinforms
them ofthestages, time-limits, order ofspeakers andtimeallotted.
These hearings allow theinterested parties tooutline theirarguments andconclusions andto
rebut thearguments andconclusions oftheopposing parties. Tothatend,thehearing isdivided into
three stages:
(i) Outline ofarguments;
(ii) rebuttal bytheparties;G/ADP/AHG/W/38
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(iii) questions bythecompetent authority.
Before thehearing begins, theauthority explains thestages andtime-limits, theorder ofspeakers
andthetimeallotted toeachparty tooutline itsarguments andrebuttals, andasummary ofthe
investigation andthearguments presented bytheparties isread.
(i) During thefirststage, theparties areabletogiveabrieforalpresentation oftheir
arguments within atime-limit previously agreed between them andtheauthority,
beginning withthedomestic producer, followed immediately bytheimporters and
exporters andbyanyother interested party;
(ii) During therebuttal stage, theparties aregiven thechance torebut thearguments
presented bytheopposing party within atime-limit previously agreed between them
andtheauthority, inthesame order asforthefirststage;
(iii) During thequestioning stage, thecompetent authority mayquestion theparties directly
concerning thearguments andevidence presented bythem during theinvestigation.
Thepartiesarethengivenfiveworkingdaysfollowingthecompletionoftheproceedings
tosubmit areport oftheirobservations withrespect tothehearing.
Topic 7-Article 6.9:Essential Facts
Scope oftheessential factstobeprovided
Asmentioned onother occasions, itisimportant tonotethattheobligation under Article 6.9
toinform allinterested parties oftheessential factsmustinnocasepre-judge thefinaldecision tobe
taken bythecompetent authority. Thus, neither theelements oritems ofinformation tobeprovided
northescope ofsuchinformation should inthemselves supply avalue judgement withrespect tothe
decision tobeadopted bythecompetent authority. Inthespecific caseofVenezuela, thedomestic
legalsystem provides foradministrative orjudicial remedies against anyactoftheauthorities which
"pre-judges asdefinitive". Iftheappeal isdeclared admissible, theactinquestion maybeannulled.
Thus, theessential factsprovided should notinclude anyevaluation ofevidence orinformation submitted
bytheinterested parties orobtained bythecompetent authority, norshould theycontain thedefacto
anddejurereasons which ledthecompetent authority totakeaccount orreject particular items of
information orevidence.
They could, however, include background information orasummary oftheevents which took
place during theinvestigation process. Thesection onthedetermination ofdumping could include:
(i) Theperiod under investigation todetermine thenormal value andtheexport price;
(ii) themethodology usedforthecalculation ofthenormal value andtheexport price;
(iii) themethodology usedforprice comparison.
Thesection onthedetermination ofdumping could include:
(i) Theelements examined todetermine thelikeness between theimported goods andthe
domestic goods; and
(ii) theelements examined forthedetermination ofinjury orthreat ofinjury tothedomestic
industry.G/ADP/AHG/W/38
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Thesection onthedetermination ofacausal linkcould include:
(i) Themethodology usedforthedetermination ofacausal linkbetween theallegedly
dumped imports andinjury tothedomestic industry.
Topic 10-Article 9:Duty Assessments
Venezuela establishes definitive anti-dumping duties onthebasisofthe"prospective" system.
Thus, itsanti-dumping lawsprovide thatiftheimporter shows thattheanti-dumping duties imposed
exceed therealmargin ofdumping, theauthority mayorder reimbursement oftheexcess amounts
collected. Theimporter mustsubmit anapplication fortherefund ofexcess duties, together withsuch
supporting documentation asitdeems appropriate. Thecompetent authority mustconduct thenecessary
investigations andverifications within atimeperiod notexceeding fourmonths, except inexceptional
circumstances. Once theinvestigation hasbeenconcluded, thecompetent authority mayorder the
customs authorities torefund theamounts paidinexcess.
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