 
  WORLD TRADE  
ORGANIZATION  G/ADP/AHG/W/157 
12 March 2004 
 
 (04-1090) 
Committee an Anti-Dumping Practices 
Working Group on Implementation Original:   Spanish 
 
 
 
ARTICLE 6.7 – CONDUCT OF VERIFICATION 
 
Paper by Argentina  
  
 The following communication, dated 9 March 2004, is being circulated at the request of the 
delegation of Argentina.  
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  Further to the Committee's decision (document G/ADP/W/433) to examine new topics in the Working Group on Implementation, I have the honour to transmit herewith a paper by Argentina on 
conduct of verification, pursuant to Artic le 6.7 of the Anti-Dumping Agreement. 
 G/ADP/AHG/W/157 
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 1. Introduction 
Further to the Committee's decision to exam ine additional topics for discussion in the 
Working Group on Implementation (document G/ADP/W/433), Argentina submits this paper 
on the conduct of verification, pursuant to Article 6.7 of the Anti-Dumping Agreement.  This 
provision states: 
 
" In order to verify information provided or to obtain further details, the authorities 
may carry out investigations in the territo ry of other Members as required, provided 
they obtain the agreement of the compani es concerned and notify the representatives 
of the government of the Member in question, and unless that Member objects to the investigation.  The procedures described in Annex I shall apply to investigations 
carried out in the territory of other Memb ers.  Subject to the requirement to protect 
confidential information, the authoriti es shall make the results of any such 
investigations available, or shall provid e disclosure thereof pursuant to paragraph 9, 
to the companies to which they pertain and may make such results available to the 
applicants." 
 Argentina incorporated the Anti-Dumping Agreement into its domestic legislation by 
Law No. 24.425.  The latter's enabling regulations  are set forth in Regulatory Decree No. 1326/98, 
which establishes, in Articles 21 to 23, the verifica tion procedure to be followed by the implementing 
authority.  In addition, article 80 of the Decree provides for the residual application of the National 
Law on Administrative Procedures (Law No. 19.549) and the Regulations on Administrative Procedures (Decree No. 1759/72 T.O. 1991).   By using the word "may", the legislation imp lies that verification is optional and will depend 
on a decision by the implementing authority either to conduct or not to conduct a verification, 
according to the particular circumstances of each case.   As stated in the above-mentioned legislation, th e aim of on-site verifications is to check the 
authenticity of the information received in duly submitted questionnaires, and obtain further details 
and/or other information that may be considered relevant. 
 
2. National Foreign Trade Commission (NFTC) 
 This section concerns the verifications carried  out in companies located abroad.  Although the 
Commission carries out no systematic verifications in the territory of other Member States, it has conducted visits to foreign productio n plants in investigations where there have been disputes, for 
instance, concerning the production processes used for the imported product and the domestic product 
in the course of determining whether they are like products.   The procedure prescribed for such verifications is  consistent with the pr ovisions of Article 6.7 
of the Agreement and is also applied where appr opriate to verifications  conducted in companies 
located in the national territory that produce or im port the product under investigation, in an effort to 
secure equal treatment for all the parties involved. 
  During an investigation into injury to domes tic production, the NFTC, within its sphere of 
competence and in accordance with the regulations laid down in the Regulatory Decree mentioned in 
point I, may conduct on-site verifications in the o ffices and industrial plants of the domestic producers 
of the product under investigation and of the importing companies that participated in the 
investigation.     G/ADP/AHG/W/157 
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  These verifications take place after a prelimin ary determination of injury and before the 
"Essential Facts Report" is incorporated  in the record of the proceedings. 
  In order to conduct a verification, the NFTC contacts the representatives of the companies 
that completed the questionnaires for producers and importers sent out after the opening of the 
investigation
1, with view to arranging an appropriate date  and timetable for the verification.  In 
accordance with the current legislation, the NFTC  notifies companies TEN (10) working days in 
advance that the verification is to take place as  agreed.  At the same time, it indicates what 
information will be verified (for example, the inform ation the company enclosed  with its reply to the 
questionnaire and the additional information submitted later). 
 
 For their part, companies must give the NFTC their consent in order for the verification to 
take place on the agreed days and under the previously specified conditions.   
  With a view to facilitating this procedure, the NFTC appoints a team of investigators, 
comprising an economist, an accountant, an engineer and a lawyer (usually the same team that is 
responsible for the corresponding investigation).    The verification of the information covered by  the period under consideration is carried out 
on the basis of the company's fil es, accounting records and/or worki ng papers and establishes that the 
information contained therein does not differ from that sent previously by the company.  Moreover, 
during the verification the NFTC experts may collect any information needed fo r the investigation and 
the company representatives may provide any comments or clarifications they deem relevant.  These 
will be reflected in the record mentioned in the paragraph below.     On completion of the verification, the experts pr epare a record of all the proceedings, which is 
signed by the NFTC officials and the company repr esentatives who participated in the verification.  
The record is placed in the corresponding file.    The NFTC experts who participated in the ve rification then prepare a "Verification Report", 
showing:  
1. The date of the verification; 
 2. the NFTC officials and the company representatives that participated;  3. the aim of the verification; 
 
4. general information about the company;  5. an analysis of the verified information and the findings;  6. the additional information identified and obtained; 
 
7. conclusions.  
 
                                                     
 
1 When sending out questionnaires to producers, importers and exporters, the NFTC informs companies 
that the information supplied in their replies must be supported by the relevant documentation and is subject to 
verification by NFTC experts.  All worksheets or docume nts used to complete the questionnaire, particularly 
those concerning accounting and administrative records and bases for estimates, must be kept and presented at 
the time of the verification.   G/ADP/AHG/W/157 
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  Lastly, the above-mentioned report is placed on file and the parties are notified so that they 
can take note of it and make their observations within the time-limit established in the current 
regulations.  
3. Undersecretariat for Trade Policy and Management 
 The Undersecretariat for Trade Policy and Mana gement conducts verifications in cases that 
warrant such action.   The implementing authority may decide to c onduct a verification in order to collate the 
information contained in the docum entation submitted by producers/e xporters after Undersecretariat's 
Department of Unfair Competition has completed its  Report on the Preliminary Determination of the 
Margin of Dumping.   The procedure followed in such cases complies with specific rules, the first being that the 
producing/exporting company is to be notified of the implementing authority's intention to conduct an 
on-site verification in its premises with the aim of collating all the submitted information and 
documentation, as consented to by the company when it duly completed the questionnaire for 
producers/exporters.    Once the consent has been obtained and a date agreed on for the verification, the 
implementing authority informs the government of the c ountry in question of its intention to verify the 
foreign company in its territory, so  as to obtain its consent as well. 
  Upon completion of this prior formality, the co mpany to undergo verification is provided with 
the list of the National Government officials who w ill take part and details of the documentation that 
should be available in order to fac ilitate their various tasks.  It is  likewise informed that additional 
documentation relating to the investig ation may be required in order to shed light or enlarge on certain 
aspects of the information sent previously.   On arrival at the company, the investigating officials must hold a preliminary meeting with the management and the officers responsible for the in formation to be verified, the aim being that they 
should familiarize themselves with certain administ rative and formal aspects of the company and to 
organize their work, which they will need to carry out as objectively, efficiently and swiftly as 
possible, given the limited time available to them.  After the meeting, a record of the "Opening of the 
Verification" is drawn up, which must be signed by all those present.   During the verification, the investigating offici als are able to seek any clarifications they 
deem necessary from the persons responsible for preparing the submitted documentation and, 
provided that no substantial changes are made to the information, incorporate minor amendments 
arising from their review of the documentation.  They may also request other related information 
and/or documentation.  If none is made available th e investigators may, if they deem fit, suspend the 
verification and the implementing authority may take its decision on the basis of the best information 
available already on file. 
 
 Once the verification has been concluded, the i nvestigating officials may ask to receive copies 
of documentation they deem to be important fo r the purpose of continuing the proceedings and 
preparing the report.  In responding to that request the company may submit the documentation without any restriction or ask that it should be treated as confidential.   
 
 The requested information must meet the requi rements for translation into Spanish as laid 
down in the Law on Administrative Procedures and be  submitted to the requesting authority within  G/ADP/AHG/W/157 
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 10 days of the completion of the verification.  This mu st be reflected in the record of the closure of the 
verification, which will be signed by all the pa rticipating investigators and company officers. 
  Finally, the investigating offi cials put together the records of  the proceedings, the requested 
documentation and the verification report.  They then  invite the company to take note of the report 
and make any observations it considers relevant.  
 
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