RESTRICTED
WORLD TRADE G/ADP/Q1/URY/8
G/SCM/Q1/URY/8
31July1997
ORGANIZATION(97-3145)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofUruguay1toQuestions from theUnited States2,
Hong Kong3,Mexico4,Chile5,Canada6andKorea7
Thefollowingcommunication,dated4July1997,hasbeenreceivedfromthePermanentMission
ofUruguay.
________________
CONTENTS
Page
1. Replies toQuestion from theUnited States ....................... 2
2. Replies toQuestions from Hong Kong ......................... 3
3. Replies toQuestions from Mexico ............................ 4
4. Replies toQuestion from Chile .............................. 7
5. Replies toquestions from Canada ............................ 9
6. Replies toquestions from Korea ............................. 10
1G/ADP/N/1/URY/2-G/SCM/N/1/URY/2.
2G/ADP/Q1/URY/2 .
3G/ADP/Q1/URY/3.
4G/ADP/Q1/URY/4.
5G/ADP/Q1/URY/5.
6G/ADP/Q1/URY/7.
7G/ADP/Q1/URY/6.G/ADP/Q1/URY/8
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Introduction
Inaccordance withUruguayan constitutional procedure, following their adoption byLaw
No.16,671 of13December 1994alltheWTO Agreements (including theAnti-Dumping Agreement)
havethestatus oflaw.
TheDecree which entered intoforceon1July1996establishes regulations under theAgreement
andistherefore oflower status andcannot conflict withtheprovisions oftheAnti-Dumping Agreement
which, asmentioned above, hasthestatus oflaw.
Replies toQuestion from theUnited States
1. Articles 10(c) and14(b) oftheNotification allow theadministering authority todetermine
itsmethod ofanalysis (ofvarious issues) on“some reasonable basis”when thefacts ofthecase
donotfitintotheconditions specifically enumerated. Dointerested parties havetheopportunity
tocomment onthemethodology used?
Reply
Theparticipation ofinterested parties oncetheinvestigation hasbeenopened isgoverned by
Article 42oftheDecree. Thecorresponding remedies areavailable totheinterested parties (application
totheadministrative authority and,ifthisisunsuccessful, tothejudicial authorities).
2. Article 99provides forthereview ofanti-dumping decisions asrequested byinterested
parties, oratthediscretion oftheadministering authority. Areannual reviews performed
automatically, oronlyininstances where arequest isreceived? Inwhat circumstances would
theadministering authority self-initiate suchareview?
Reply
Reviews maybeperformed onlyafteraminimum period ofoneyearfrom thedateofthe
imposition offinalanti-dumping duties, incaseswhere theyarerequested byanyoftheinterested parties
asprovided forintheDecree (Article 37),orautomatically when thecompetent authority isaware
thattheconditions which gaverisetotheimposition ofthemeasure havechanged, i.e.thecircumstances
specified inparagraphs (a),(b)and(c)ofArticle 99havebeenshown toexist.
3. Under Article 108,whatconditions orcircumstances arenecessary topermit thetemporary
suspension ofanti-dumping duties? Aresuchsuspensions made pursuant toarequest byinterested
parties, atthediscretion oftheauthorities, orboth? What evidence must bepresented forthis
determination? What arethetimelimits, ifany,fortheadministering authority todetermine
thatasuspension ofanti-dumping duties iswarranted? What circumstances arenecessary for
thereimposition ofsuspended anti-dumping duties?
Reply
Article108providesthatanti-dumpingdutiesmaybesuspendedifmarketconditionstemporarily
change, provided thatinjury doesnotreappear orcontinue asresult ofthesuspension.
Proceedings inthiscasemaybeinitiated either byaninterested party orautomatically bythe
competentauthoritywhenithasinformationindicatingthatthemarketsituationhastemporarilychanged.G/ADP/Q1/URY/8
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Evidence must besubmitted tosubstantiate thetemporary changes inmarket conditions.
Thetime-limit formaintaining thesuspension ofananti-dumping dutyisoneyear, extendable
forafurther year.
Anti-dumping duties maybereimposed ifthesuspension isnotjustified, thatistosay,the
injury hasrecurred.
Replies toQuestions from Hong Kong
Determination ofdumping
1. Article 4oftheUruguay Decree states thataproduct shallbeconsidered asbeing dumped
whenitisintroducedintothedomesticmarket,includingunderthetemporaryadmissionprocedure,
atanexport price thatislessthanitsnormal value.
Question
CanUruguay elaborate what isa"temporary admission procedure"?
Reply
Thisprocedure allows specific products tobeimported entirely duty-free, withtheobligation
thattheybere-exported within amaximum period of18months.
Thistreatmentisappliedtorawmaterials,engineparts,engines,packingmaterials,dies,moulds
andmodels, semi-finished intermediate products, agricultural products andinputs usedbydomestic
industry tomanufacture export goods.
2. Article 5.4oftheWTO A-DAgreement provides thataninvestigation shallnotbeinitiated
unless theauthorities have determined, onthebasis ofanexamination ofthedegree ofsupport
for,oropposition to,theapplication onbehalf ofthedomestic industry. However, Article 32
oftheUruguay Decree doesnotstate thattheimplementing authority shall examine thedegree
ofopposition totheapplication.
Question
Would Uruguay advise ifthere isanydifference between Article 5.4oftheWTO A-D
Agreement andArticle 32oftheUruguay Decree indetermining whether anapplication hasbeen
made byoronbehalf ofthedomestic industry?
Reply
Article 32oftheUruguayan Anti-Dumping Decree doesnotdiffer fromArticle 5.4oftheWTO
Agreement. Moreover, much ofArticle 32faithfully reproduces Article 5.4oftheAgreement. The
question ofopposition totheapplication isdealt withattheendofthelastsentence, which refers
"expressing either support foropposition totheapplication". Thiscorresponds exactly withtheSpanish
andtheEnglish versions oftheAgreement. Theonlydifference withthetextoftheAgreement lies
inthesecond sentence ofArticle 32,which states "theimplementing authority shallalsoproceed to
examine thedegree ofsupport fortheapplication ...". Here theAgreement states "examination ofG/ADP/Q1/URY/8
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thedegree ofsupport for,oropposition to,theapplication ...". However, thefactthatthishasbeen
leftoutdoesnotimply anydifference inprocedural terms.
Procedures foron-the-spot investigations
3. According toParagraph 2ofAnnex IoftheWTO A-DAgreement, non-governmental
experts intheinvestigating teamshould besubject toeffective sanctions forbreach ofconfidentiality
requirements.
Article 114oftheUruguay Decree states thatsuchexperts shallbesubject tothesanctions
ofArticle 302ofthePenal Code forviolation ofconfidentiality obligations.
Question
Would Uruguay provide details onArticle 302ofthePenal Code?
Reply
ThetextofArticle 302ofthePenal Code isattached (theamounts ofthemonetary penalties
must beupdated interms ofAdjustable Units).
Replies toQuestions from Mexico
1. Where there isaconflict between theWTO Agreements andtheDecree notified, howwill
itberesolved bythecompetent Uruguayan authority?
Reply
Inaccordance withUruguayan constitutional procedure, following their adoption byLaw
No.16,671 of13December 1994alltheWTO Agreements (including theAnti-Dumping Agreement)
havethestatus oflaw.
TheDecree which entered intoforceon1July1996establishes regulations under theAgreement
andistherefore oflower status andcannot conflict withtheprovisions oftheAnti-Dumping Agreement
which, asmentioned above, hasthestatus oflaw.
2. Articles 32and35(a) stipulate thecriteria thattheauthority must takeintoaccount when
deciding whether toinitiate aninvestigation intheareaofinternational unfair trade practices
ortherejection ofanapplication. Atnotimedothecriteria refer toanobligation totakeinto
account thecausal linkbetween thedumping andtheinjury indicated bytheapplicants. How
doestheauthority reconcile these provisions withtheobligation inArticles 5.2and5.3ofthe
Anti-Dumping Code toassess alltheevidence submitted intheapplication, including evidence
which refers tothecausal linkwhich must necessarily existbetween thedumping andtheinjury?
Reply
While thewording ofArticle 32oftheUruguayan Decree does notexplicitly refer, as
Article 5.2(c) oftheAgreement does, tothenecessary causality between theoccurrence ofdumping
andtheinjury, thisismentioned inArticle 24ofChapter III-Determination ofInjury: "Itmustbe
demonstrated thatthere isacausal relationship between thedumped imports andtheinjury tothe
domestic industry ...".Itisalsomentioned inArticle 35(a), where thereisareference totheelementsG/ADP/Q1/URY/8
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thatmust exist foranapplication toberejected: "There isnotsufficient evidence ofdumping or
consequent injury ...".Thisexpresses theneedtohaveevidence todetermine thecausal linkbetween
thedumping andtheinjury. Likewise, inArticle 40,which mentions thatinexceptional circumstances
aninvestigation maybeinitiated exofficio, reference isagain made totheexistence ofevidence of
acausal link.
3. Thelegislation under discussion doesnotindicate aspecific time-period within which,
after theinvestigation hasbeen initiated, theauthority istosend questionnaires requesting
information from theinterested parties. What istheusual time-period forsending outthese
questionnaires?
Reply
A. Uruguay hasnoexperience intheapplication ofanti-dumping legislation, andtherefore no
time-period waslaiddown inthelegislation. Itwaslefttotheimplementing authorities todetermine
thiswhen establishing theinternal regulations. Forthesame reasons, there isnotyeta"usual"
time-period, thegeneral criterion being tosendoutthequestionnaires asrapidly aspossible following
theopening oftheinvestigation.
B. Alternative reply: Since theabove-mentioned Decree doesnotlaydown aspecific time-limit,
thegeneral rules governing theadministrative practice oftheCentral Administration arefollowed,
thatistosay,Decree No.500/91. Article 92ofDecree No.500/91 establishes thatthemaximum
time-period fornotification is15dayscounted from thedayfollowing theacttobenotified.
4. What isthetime-limit within which theinvestigating authorities mustnotify thegovernment
oftheexporting country oftheirintention toinitiate aninvestigation, forthepurposes ofmeeting
theobligation setoutinArticle 5.5oftheAnti-Dumping Agreement?
Reply
A. Notime-limit isstipulated forfulfilling thisobligation assetoutinArticle 5.5.Thisisleft
totheelaboration oftheinternal regulations oftheimplementing authorities.
B. Alternative reply: Article 39oftheDecree repeats thetextcontained inArticle 5.5ofthe
WTO Agreement, which does notestablish aspecific time-limit. Thus, thenotification bythe
investigating authorities tothegovernment oftheexporting country oftheintention toinitiate an
investigation istobecarried asrapidly aspossible.
5. Arethetime-limits provided forinthenotified Decree calculated inworking days or
calendar days?
Reply
Thetime-limits provided forintheDecree arecalendar or"natural" days, asmentioned in
Article 128ofChapter III,General Provisions. Thisarticle alsoprovides thepossibility ofgranting
anextension. Thus, intheevent ofaveryshort time-limit together withoneorseveral holidays, the
implementing authority could allow anextension.
6. Could youclarify thedifference between thejointresolution mentioned inArticle 67and
theinter-ministerial resolution referred toinArticle 2(b)?G/ADP/Q1/URY/8
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Reply
There isnodifference: thisArticle refers toaninter-ministerial resolution.
7. What ismeant bytheterm "ineffective" inArticle 70andisitpossible togiveanexample
ofthis?
Reply
Article 70corresponds toArticle 8.3oftheAgreement. Thus, theterm"ineffective" isthe
equivalent oftheexpression inArticle 8.3stating that"theacceptance ofaspecific undertaking would
beimpractical". Theexamples given aresimilar tothisinthetextoftheAgreement.
8. Atwhat timeduring theinvestigation mayprice undertakings berequested andwhen does
theright topropose them terminate?
Reply
TheDecree doesnotestablish time-periods forthesubmission ofprice undertakings during
theinvestigation stage. Article 68establishes that"price undertakings shallnotbesought oraccepted ...
ortoaccept those offered tothem. Iftheydonot,thisshallinnowayprejudice theinvestigation of
thefacts".
9. WhatcriterionisusedbytheinvestigatingauthorityofUruguaytodeterminetheexceptional
circumstances stipulated inArticle 77ofthenotified Decree?
Reply
Article 77corresponds toArticle 5.10oftheAgreement. Theimplementing authority does
nothaveanapriori definition of"exceptional circumstances". Theinvestigation mustbeconcluded
within thetime-limits established intheAgreement. Ifsuchexceptional circumstances weretoexist,
theauthority would probably consult theWTO before taking thedecision tocontinue aninvestigation
beyond theestablished time-limits. While thishasnotyetoccurred inpractice, thecriterion tobe
followed isthesame asthatadopted intheWTO Agreement.
10. Article 98allows forextending exofficio theexpiry dateofdefinitive anti-dumping duties.
What aretherequirements tobemetbytheauthority intheventthatitdecides tomake useof
thispossibility andhowarethese requirements tobereconciled withthestipulations ofArticle 11
oftheAnti-Dumping Code?
Reply
SUGGESTION
Article 98mentions thepossibility ofextending exofficio thevalidity offinalanti-dumping
duties "ifitisconcluded thattheexpiry ofthedutywillleadtocontinuational recurrence ofdumping
andinjury".
Thus, Article 98oftheDecree coincides withtheprovisions ofArticle 11oftheAnti-Dumping
Code, which hasthestatus oflawinUruguay, asmentioned above.G/ADP/Q1/URY/8
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11. What isthetime-period fortheauthority tohavethevarious resolutions andproceedings
published intheOfficial Journal where thisisrequired?
Reply
SUGGESTION
Publication intheOfficial Journal ofresolutions thatsorequire iscarried outasrapidly as
possible, following thegeneral rulesinthisrespect, which provide foraprudential period of10days.
Replies toquestions from Chile
1. Please clarify theexpression "primary ornon-primary products" inArticle 1ofyour
legislation.
Reply
Theexpression "primary ornon-primary products" means, inthecaseofprimary products,
agricultural products andproducts uptofirstprocessing, andindustrial products inthecaseof
non-primary products. Thisdifferentiation ismade owing totheinstitutional structure Uruguay has
established tocarry outanti-dumping proceedings. Article 2identifies theimplementing authorities
oftheDecree "depending onthenature oftheproduct investigated". Inanycase, itshould beborne
inmind thattheprocedures arethesame inbothcases; allthatchanges istheimplementing authority.
2. Please specify whether theprovisions ofArticle 32ofyouranti-dumping legislation would
cover theinitiation ofaninvestigation supported bydomestic producers whorepresent alow
percentage ofthetotaloutput ofthelikeproduct.
Reply
Article 32corresponds toArticle 5.4oftheAgreement. Thus, andalthough notstated inthe
Decree, thecriterion followed isthatoftheWTO Agreement, (which, asalready mentioned, hasthe
status oflawinourcountry), namely that"noinvestigation shallbeinitiated when domestic producers
expressly supporting theapplication account forlessthan25percentoftotalproduction ofthelike
product ...". Given these limits, itwould bepossible toopenaninvestigation withalevelofsupport
ofbetween 25and50percentofthetotalproduction ofthelikeproduct.
3. Please clarify whatelements areusedtoestablish the"conditions ofcompetition" mentioned
inArticle 22ofyouranti-dumping legislation forthecumulative assessment oftheeffects ofthe
imports under investigation.
Reply
The"conditions ofcompetition" mentioned inArticle 22arethose referred toinArticle 3.3
oftheAgreement inidentical terms.
4. With regard totheamount ofanti-dumping duties, please clarify what provision ismade
inyouranti-dumping legislation fortheimposition ofadutywhich isequal tothemargin ofinjury
andcorrects onlytheinjury caused.G/ADP/Q1/URY/8
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Reply
Thisisprovided forinArticle 85oftheDecree, where theterm"anti-dumping duty" isdefined,
andinArticle 87oftheDecree.
5. Please describe theprocedure followed under Article 54ofyouranti-dumping legislation
forinforming theinterested parties oftheessential facts. Isawritten copyofthementioned hearing
provided? Isacopy senttoparties thatdidnotattend ahearing?
Reply
A. Thisisamatter fortheinternal regulations oftheimplementing authority which, asmentioned
above, havenotyetbeendrawn up.
B. Alternative reply: Article 54oftheDecree, which repeats thecontents ofArticle 6.9ofthe
WTO Agreement, establishes thatbefore ruling ontheexistence ofdumping, injury andcausality,
theimplementing authority hastoconvene ahearing atwhich itwillinform theinterested parties of
theessential factstobetaken intoaccount initsdecision.
Provision isnotmade forproviding awritten copyofthementioned hearing orforsending
acopytoparties thatdidnotattend thehearing. Inthisconnection, mention should bemade interalia
ofArticle 53oftheDecree which establishes that"interested parties mayrequest, inwriting, tosee
theproceedings, which shallbemade available tothem provided thepursuit oftheinvestigation so
allows, except forthose proceedings which areconfidential andinternal government documents".
6. What considerations aretaken intoaccount under Articles 15and16ofyour legislation
andinyouranti-dumping practices withrespect toadjustments forquality oftheproduct under
investigation?
Reply
Adjustments forquality andpossibly other necessary adjustments arecovered byArticles 15
and16which dealwiththecriteria forprice comparability. Mention ismade interaliaofdifferences
inconditions andterms ofsale,taxation, levels oftrade, quantities, physical characteristics and"any
other differences demonstrated toaffect price comparability".
7. Please clarify howtheinvestigations mentioned inArticle 107ofyourlegislation arecarried
out,inconnection withtheinvestigation ofproducers orexporters ofcountries whohave not
exported theproduct during theperiod ofinvestigation. How aretheappropriate transparency
andnotification ofparties guaranteed?
Reply
Thetransparency oftheprocess andnotification ofinterested parties areprovided forin
Articles 36and38and43to46,aswellas51to54.
8. What criteria areusedforinterpreting, inaccordance withArticle 2.2oftheAnti-Dumping
Code, theconcept of"particular market situation" forrejecting thedomestic price oftheexporting
country asthenormal value?G/ADP/Q1/URY/8
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Reply
Thisapplies tothecasewhere theallegedly dumped product comes fromanon-market economy
country. Thecriteria andprocedures arelaiddown inArticles 11and12oftheDecree.
9. Article 92ofyour legislation provides fortherefund ofanyexcess amount arising from
aprovisional duty. Isthisrefund adjusted forthecorresponding financial costs?
Reply
Inaccordance withArticle 99therefund ismade "promptly", inUSdollars, without financial
adjustment.
10. Inconnection withArticle 37(e) ofyour legislation, inwhat wayareindustrial users of
theinvestigated product considered asaninterested party?
Reply
InlinewithArticle 6.11oftheAgreement, Article 37(e) oftheDecree doesnotconsider
industrial users asaninterested party butArticle 48oftheDecree allows thepossibility thatduring
theinvestigation theymayprovide anyinformation which isrelevant totheinvestigation regarding
dumping, injury andcausality.
Replies toquestions from Canada
1. Uruguay 'slawdoesnotappear toprovide forjudicial review ofspecific anti-dumping
decisionsortheadoptionofWTODisputeSettlementBodyPanelreports,shouldsuchcircumstances
arise. Does Uruguay plantoincorporate suchprovisions intoitslegislation?
Reply
AdministrativeandjudicialreviewofalladministrativedecisionsisprovidedforintheUruguayan
Constitution andtherefore doesnothavetobementioned intheDecree.
Thepossibility ofapplication foradministrative review ofresolutions adopted during the
procedure doesexist. After theadministrative channel hasbeenexhausted, thejudicial route remedy
becomes available, andapplication maybemade totheAdministrative Court fortheacttobedeclared
nullandvoid.
TheAdministrative Court isanindependent jurisdictional body responsible forhearing
applications todeclare nullandvoidadministrative actsperformed bytheadministration intheexercise
ofitsfunctions thatarecontrary toalegalruleorconstitute misuse ofauthority.
With respect totheimplementation ofapanel decision, thepanel'sdecision willbecomplied
with.
2. While thelegislation indicates thatpublic notices willbepublished atvarious stages of
aninvestigation, itdoesnotprovide details astowhat information willbeincluded inthepublic
notices. Does Uruguay plantoincorporate details outlining therequired content ofpublic notices
intoitslegislation?G/ADP/Q1/URY/8
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Reply
Theinformation tobepublished isdefined invarious provisions oftheAgreement andisrelated
totheconfidentiality oftheinformation. Inthisconnection Articles 36(publication oftheinitiation
oftheinvestigation), 38(informing interested parties oftheapplication) and46(confidentiality of
information) must beexamined together asawhole.
Insuchcases, "confidential" information willnotbepublished ornotified.
Inother cases ofpublic notice (Articles 63,76,84and101,among others) thetextofthe
resolution ofthecompetent authority willbepublished.
Replies toquestions from Korea
Questions ontheAnti-Dumping Legislation
1. Regarding Article 108
According toArticle 108oftheDecree ofUruguay, anti-dumping duties maybesuspended
andreimposed ifrespective conditions aremet.
Onwhich Articles oftheWTO A-DAgreement isArticle 108oftheDecree based? Please
explain theprocedures andcriteria forthereimposition ofsuspended anti-dumping duties. Does
theperiod ofsuspension ofanti-dumping duties have anylimit?
Reply
Article 108oftheDecree isbased onArticle 11,paragraphs 1and2,oftheWTO Agreement.
Hence,thepossibilityofsuspendingananti-dumpingdutyisconsideredtheleasttrade-restrictive
alternative forcases where market conditions havechanged butalltheelements thatwould justify
definitively eliminating itdonotyetexist. Thealternative would betomaintain theanti-dumping duty
untilsuchtimeasalltheseelements existorthetime-limits laiddown inArticle 11.3oftheAgreement
haveelapsed, which would bemore restrictive.
Thetime-limit formaintaining thesuspension ofananti-dumping dutyisoneyear, extendable
forafurther year.
2. Regarding Article 11andArticle 12
According toArticle 11oftheDecree ofUruguay, thenormal value ofnon-market economy
countries shall bedetermined onthebasis oftheprice atwhich alikeproduct inathird
market-economy country isactually soldforconsumption.
Ifaninterested party, informed ofthecriteria usedtoselect thethird market-economy
country, makes anynegative comments within thetime-limit according toArticle 12oftheDecree,
would there beapossibility andprocedure tochange theselection ofthethird market-economy
country?G/ADP/Q1/URY/8
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Reply
Thispossibility isprovided forattheendofthelastparagraph ofArticle 12oftheDecree:
"andmaymake anycomments theyconsider relevant within aperiod of10days".