WORLD TRADE G/ADP/N/1/VEN/1
G/SCM/N/1/VEN/1
6April 1995
ORGANIZATION(95-0840)
Committee onAnti-Dumping Practices Original: Spanish
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
VENEZUELA
Thefollowing communication, dated 15March 1995, hasbeenreceived fromthePermanent
Mission ofVenezuela.
_______________
InaccordancewithArticle18.5oftheAgreementonImplementationofArticleVIoftheGeneral
Agreement onTariffs andTrade 1994 andArticle 32.6, PartXI,oftheAgreement onSubsidies and
Countervailing Measures, Ienclose herewith thetextofthelawsandregulations inforce inVenezuela
relating totheaforementioned Agreements.
Venezuela 'slegislation relating toanti-dumping andcountervailing measures iscomposed of
thefollowing texts:
(a) Lawapproving theMarrakesh Agreement Establishing theWorld Trade Organization (WTO),
theAgreement onImplementation ofArticle VIoftheGeneral Agreement onTariffs andTrade
19941andtheAgreement onSubsidies andCountervailing Measures.
AsVenezuela isasignatory totheMarrakesh Agreement andasalltheprocedures laiddown
intheConstitution oftheRepublic ofVenezuela havebeenobserved, thetextofthisAgreement forms
partofdomestic legislation, inother words, ithasforce oflawandmust becomplied withbyall
inhabitants andauthorities inVenezuela. Itprevails overanycontrary ordifferent provision contained
inprevious laws. ThetextofthisAgreement isnotattached tothiscommunication.
(b) LawonUnfair Foreign Trade Practices.2
ThisLawregulates allaspects ofinternal procedures related toanti-dumping measures. In
principle, thetextdoesnotcontain anyprovisions contrary totheMarrakesh Agreement. Ingeneral,
itsprovisions grant theAdministration broad powers tointerpret andapply anti-dumping measures
inconformity withtheprovisions contained intheMarrakesh Agreement.
1Official Gazette oftheRepublic ofVenezuela, No.4.829, Special Edition, 29December 1994.
2Official Gazette oftheRepublic ofVenezuela, No.4.441, Special Edition, 18June 1992.G/ADP/N/1/VEN/1
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(c) Regulations under theLawonUnfair Foreign Trade Practices.3
Inorder toimplement theprovisions contained intheMarrakesh Agreement andtheLawon
Unfair Foreign Trade Practices, theGovernment oftheRepublic ofVenezuela isconsidering the
possibility ofadopting newregulations tofacilitate theadministration andapplication ofanti-dumping
legislation.
(d) Decision 283oftheCommission oftheCartagena Agreement.4
ThisDecision applies totrade relations among countries oftheAndean subregion. Member
States oftheCartagena Agreement willhavetoconsider thepossibility ofincluding some amendments
totheprevailing regional regulations.
Decree No.2.883 5April 1993
CARLOS ANDRES PEREZ
PRESIDENT OFTHE REPUBLIC
Byvirtue ofthepower granted tohiminparagraph 10ofArticle 190oftheConstitution, in
theCouncil ofMinisters
DECREES:
Thefollowing:
REGULATIONS UNDER THE LAW ONUNFAIR
FOREIGN TRADE PRACTICES
TITLE I
DUMPING
CHAPTER I
LIKE GOODS
ARTICLE 1:Theprovisions ofthisChapter shallapply bothtocases ofdumping andtocases
inwhich theLaworthese Regulations refertolikegoods.
ARTICLE2:Forthepurposesofcomparinglikegoods,thegreatestpossiblenumberofelements
shallbetaken intoaccount, forexample, theirnature, physical characteristics, components, technical
specifications, origin, source, utilization, function, market behaviour, quality, trademark andreputation,
thislastbeing understood inthecontext oftheadvertising usedandtheirdegree ofacceptance bythe
relevant category ofconsumers.
3Official Gazette oftheRepublic ofVenezuela, No.4.567, Special Edition, 26April 1993.
4Official Gazette oftheRepublic ofVenezuela, No.4.284, Special Edition, 28June 1991.G/ADP/N/1/VEN/1
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ARTICLE 3:Incalculating thenormal value andother determinations, identical goods shall
betaken aslikegoods, or,ifthisisnotpossible, goods which closely resemble thegood allegedly
dumped orsubsidized, or,intheirabsence, substitute goods.
ARTICLE 4:Inconformity withtheprevious Article, likegoods shallmean:
1. Identical goods, i.e.which arealikeinallrespects;
2. Goods which closely resemble thegoodallegedly dumped orsubsidized when
thegoods arenotonly used forvery similar purposes buttheir other
characteristics areequally similar;
3. Goods which aresubstitutes forthegoodallegedly dumped orsubsidized when
their useorfunction leads toresults identical tothose ofthedumped or
subsidized good.
Forthepurposes ofmaking thecorresponding comparisons, theprocedure shallbethatoutlined
inArticle 2ofthese Regulations. TheCommission shallinvestigate theenduseofthedumped or
subsidized good, attheindustrial, commercial orfinalconsumption levels andshalldetermine itsspecific
utilization.
ARTICLE 5:Theapplication ofthecomparison criteria shallnotmean thatgoods imported
intheformofinputs orcomponents offinished goods maynotbeconsidered aslikegoods when there
aresufficient grounds forconsidering theimportation inthecomponent formiseconomically senseless
andthatitsfundamental purpose istoavoid thetreatment given tothefinished product. Insuchcases,
itshallbedetermined thatthegood intheform ofinputs orcomponents andthefinished good are
likegoods.
ARTICLE 6:TheCommission shallconsider thatgoods allegedly dumped orsubsidized are
likegoods when, ifitwere notfordifferences inthetrademark, theywould bedeemed tobealike
togoods soldinthecountry ofexport oroforigin, inanyofthefollowing cases:
1. Imported goods withatrademark thatsoresembles thetrademark ofagood soldin
thecountry ofexport oroforigin thatitisliable tomislead consumers;
2. Goods without atrademark, where there isevidence thattheyarebeing imported for
thepurpose ofdistribution orresale inVenezuela withthesame trademark as,ora
trademark similar to,thatofthegood soldinthecountry ofexport oroforigin;
3. Where thereisevidence thatthepurpose ofthedifference inthetrademark istoprevent
determination ofthenormal value bytaking intoconsideration thegoods soldinthe
country ofexport oroforigin.
CHAPTER II
NORMAL VALUE
ARTICLE 7:Thedetermination ofthenormal value referred toinArticle 5oftheLawshall
besubject totheprocedures andrules laiddown inthese Regulations.G/ADP/N/1/VEN/1
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ARTICLE 8:Forthepurposes ofdetermining thenormal value, theordinary course oftrade
shallmean salesoflikegoods usually effected bytheexporter orproducer ofthegoodallegedly dumped
tobuyers inthecountry ofexport oroforigin which meetthefollowing requirements:
1. Thebuyer isnotanassociated person, within themeaning ofparagraph 16ofArticle 2
oftheLawand,totheextent thattheCommission considers itrelevant, thebuyer is
atacommercial levelequivalent tothatoftheimporter oftheallegedly dumped or
subsidized good within thecorresponding lineoftrade.
Where theexporter orproducer ofthegoodallegedly dumped sellslikegoods
toindependent buyers inthecountry ofexport oroforigin, through anassociated
person, theCommission mayconsider thatsalestosuchbuyers constitute salesmade
intheordinary course oftrade, provided thattheother conditions mentioned inthis
Article obtain;
2. Theindividual volumes ofsales tobuyers inthecountry ofexport oroforigin
correspond tothevolumes ofsalesofthegood allegedly dumped;
3. Theexporter orproducers oflikegoods sellinthecountry ofexport oroforigin a
volume equivalent toatleast20percentofthetotalvolume ofglobal sales, including
those toVenezuela.
Nevertheless, incases where, duetothecharacteristics ofthemarket orof
thegood, itisshown thatalower volume ofsalespermits anadequate comparison,
theCommission mayaccept alower percentage;
4. Thesales tobuyers inthecountry ofexport oroforigin aremade under sufficient
conditions offreecompetition onthemarket ofexport oroforigin. Thefixing ofprices
bytheState, theexistence ofpractices which prevent orrestrict theexercise offree
competition andtransactions between related persons through associations, agreements
orcompensatory arrangements, even when suchpersons cannot bedeemed tobe
associated persons, shallbeconsidered asconflicting withsuchconditions.
5. Thesalesweremade within aperiod notexceeding twomonths immediately prior to
orfollowing theallegedly dumped sales.
Inexceptional cases, where thenature ofthegoodsoldorofthetradecycles affecting itmeans
thatsuch atime-limit isimpractical, inappropriate orcontrary tointernational trade usage, the
Commission maytakeintoaccount salesoveralonger period; itmustthenjustify doing soinitsdecision
ontheapplication.
ARTICLE 9:Forthepurposes ofcalculating thenormal value, thecomparable pricereferred
toinparagraph 14ofArticle 2oftheLawshallbenetafterdeduction ofthediscounts, refunds and
otherreductions granted tothebuyer, provided thattheexporter orproducer requests thecorresponding
adjustment andproves totheCommission 'ssatisfaction thatsuchdiscounts haveactually beenmade.
ARTICLE 10:TheCommission shallcalculate thenormal value using thecomparable price
actually paidorpayable, intheordinary course oftrade, forthegoodallegedly dumped which isintended
forconsumption inthecountry ofexport oroforigin. When salescannot beconsidered asbeing in
theordinary course oftrade inaccordance withtheprovisions ofArticle 8ofthese Regulations, the
Commission shallcalculate thenormal value according tothefollowing sequence ofpriority:G/ADP/N/1/VEN/1
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1. Byusing thecompared export value method;
2. Where thecompared export value isnotsuitable, byusing thecomputed value method.
3. Where thenormal value cannot bedetermined using themethods mentioned in
paragraphs 1and2ofthisArticle, theCommission maycalculate itonthebasis of
salesinthecountry oforigin byproducers orsellers oflikegoods tobuyers inthe
country ofexport oroforigin, forwhich purpose itmayusestatistical information
available inthatcountry.
Where salesoflikegoods bytheexporter orproducer areatarealprice below theproduction
costsmentioned inparagraph 1ofArticle 12oftheseRegulations, thenormal value shallbecalculated
according tothemethods provided forinthesaidArticle.
Inthecaseofimports originating inorcoming fromcountries withcentrally-planned economies,
theCommission shallcalculate thenormal value according tothemethods provided forinparagraphs 1
and2ofthisArticle, onthebasisofsalesbyproducers orsellers oflikegoods inathirdcountry with
amarket economy andasimilar levelofdevelopment tothatoftheformer. Iftheaforementioned
methods arenotsufficient, theCommission mayadjust thepriceactually paidorpayable inVenezuela
toinclude areasonable margin ofprofit.
ARTICLE 11:Thecompared export value isthepriceofsalesbytheexporter oftheallegedly
dumped good tobuyers inacountry other thanVenezuela orthecountry ofexport oroforigin. In
suchcases, theCommission maytakeintoaccount thehighest price, provided thatitisrepresentative,
andshallensure thattheconditions laiddown inArticle 8oftheseRegulations arefulfilled withreference
tothecountry ofexport selected.
ARTICLE 12:Thecomputed value isthetotalofthefollowing elements related totheallegedly
dumped good oralikegood:
1. Production costs, meaning thetotaloffixed andvariable costs fortheinputs utilized
andthemanufacturing process, intheordinary course oftradeinthecountry oforigin,
withareasonable margin forselling, administrative andother general costs;
2. Areasonable margin ofprofit, calculated inrelation totherespective costsandearnings
oftheproducer orexporter, forsalesforprofit topersons otherthanassociated persons
inthecountry oforigin orofexport.
IftheCommission considers thatthisinformation isnotreliable orisinsufficient, itshalluse
theproduction costs andtherelated profit ofother producers orexporters inthecountry oforigin or
ofexport forsalesforprofit ofalikegood. Ifsuchinformation isstillnotsufficient, thevalue may
becalculated onthebasis ofsalesofother goods bytheexporter orother manufacturers within the
sameeconomic sector inthecountry oforigin orofexport, oronanyother reasonable basisdetermined
bytheCommission.
ARTICLE 13:Inthecaseofsalesoflikegoods bytheexporter oftheallegedly dumped good
tobuyers inthecountry ofexport oroforigin where itisshown thattherealselling price isbelow
production costsasspecified inparagraph 1ofArticle 12ofthese Regulations, theCommission may
consider thatsuchsaleshavenotbeenmade intheordinary course oftrade andcalculate thenormal
value using themethod itdeems most appropriate among thefollowing:G/ADP/N/1/VEN/1
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1. Other salestobuyers inthecountry ofexport oroforigin which havebeenmade at
prices thatarenotlower thanproduction costs;
2. Thecompared export value inaccordance withArticle 11ofthese Regulations;
3. Thecomputed value inaccordance withArticle 12ofthese Regulations;
4. Adjustment oftheprice below production costs soastoeliminate losses andprovide
forareasonable margin ofprofit.
ARTICLE 14:Forthepurposes oftheprevious Article, salesinwhich thepriceislower than
production costsshallhavebeenmade overaperiod ofnotlessthansixmonths normorethan18months
inquantities exceeding 80percentoftotalsalesandatprices which donotallow recovery ofallcosts
within areasonable period. Thislastcircumstance shallbeestablished when below-cost prices atthe
timeofsalearehigher thantheweighted average costs during theperiod oftheinvestigation.
CHAPTER III
EXPORT PRICE
ARTICLE 15:Forthepurposes ofArticle 6oftheLaw, theexport price means theprice
actually paidorpayable forthegood allegedly dumped, incashorinkind, actually transferred or
transferable against thesale,exchange oranyother form oftransfer forvalue ofthesaidgood.
TheCommission shallcalculate theexport price onthefollowing basis, asappropriate:
1. Direct export price;
2. Indirect export price;
3. Export price forsubsequent processing.
ARTICLE16:Thediscounts,refundsandotherreductionstobetakenintoaccountincalculating
thenetvalue constituting theexport price referred toinArticle 6oftheLawshallbedirectly related
tothesalestransactions concerned andshallonlybetaken intoaccount iftheinterested party requests
thecorresponding adjustment andprovides justification therefor totheCommission.
ARTICLE 17:Inthecaseofthedirect export price, thefollowing deductions shallbemade:
1. AnytaxpaidinVenezuela orabroad resulting fromtheexport orimport oftheallegedly
dumped good;
2. Thecostsofpreparing, packing orpackaging theallegedly dumped goods fordispatch,
provided thattheyaredistinct fromthecosts related tosalestobuyers inthecountry
ofexport oroforigin;
3. Costs related totheexport andtransport toVenezuela oftheallegedly dumped goods
andentry costs. These shall include freight, maintenance, insurance, loading and
unloading, handling andother related costsincurred forthetransport ofthegoodfrom
theexporter 'swarehouse untilitisdelivered tothebuyer inVenezuela.G/ADP/N/1/VEN/1
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Forthedeductions referred tointhisArticle tobeapplicable, thecostsmentioned intheprevious
paragraphs must beincluded inthedirect export price.
ARTICLE 18:TheCommission shalldetermine theexport priceoftheallegedly dumped good
using theindirect export price mentioned inArticle 19ofthese Regulations when there isnodirect
export price or,ifoneexists, itcannot beusedbecause itconcerns atransaction between associated
persons orpersons whomayberelated through associations, agreements orcompensatory arrangements
concerning theprice, sale,profits orcosts fortheallegedly dumped good.
ARTICLE 19:Theindirect export price istheprice calculated onthebasis ofthatatwhich
theimporter sellstheallegedly dumped good, inthecondition asimported andinrepresentative
quantities, tothefirstindependent buyer inVenezuela. Independent buyer means aperson whois
notdeemed tobeassociated orrelated totheimporter, exporter orproducer, through associations,
agreements orcompensatory arrangements concerning theprice, sale,profits orcostsfortheallegedly
dumped good.
ARTICLE 20:Forthepurpose ofcalculating theindirect export price, thefollowing costs
shallbededucted from theprice atwhich theimporter sellstheallegedly dumped good tothefirst
independent buyer inVenezuela:
1. Thecosts listed inparagraphs 1,2and3ofArticle 17ofthese Regulations;
2. Thedirect andindirect selling costs incurred bytheimporter afterthegood hasbeen
imported andbefore itissoldtoanindependent buyer. Indetermining these costs,
theCommission shallbeguided bytheprovisions ofArticle 33ofthese Regulations;
3. Thegeneral andadministrative costsincurred bytheimporter afterthegoodhasbeen
imported andbefore itissoldtoanindependent buyer;
4. Areasonable margin forprofit onthesalebytheimporter, calculated inrelation to
salesforprofit byproducers andsellers oflikegoods or,intheirabsence, goods of
thesame economic sector.
Forthedeductions referred tointhisArticle tobeapplicable, thecostsmentioned intheprevious
paragraphs must beincluded intheselling price tothefirstindependent buyer inVenezuela.
ARTICLE 21:When theexport price cannot bedetermined using theindirect export price
provided forinArticle 19oftheseRegulations, theCommission shallcalculate thepriceinaccordance
withthefollowing guidelines:
1. Where theallegedly dumped goodhasbeenprocessed afteritsimportation andbefore
itssaletothefirstindependent buyer inVenezuela, theCommission shalldetermine
theexport price using theEXPORT PRICE FOR SUBSEQUENT PROCESSING,
provided forinArticle 22ofthese Regulations. Theallegedly dumped good is
considered ashaving beenprocessed when ithasbeensubject toorincorporated in
assembly, packaging ormanufacturing processes inVenezuela.
2. Incases where itisnotpossible toproceed inaccordance withtheprovisions ofthe
preceding paragraph, theCommission shalldetermine theexport price onthebasis
ofother criteria andshallclearly specify these criteria intherelevant decision.G/ADP/N/1/VEN/1
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ARTICLE 22:EXPORT PRICE FORSUBSEQUENT PROCESSING means theprice paid
forthefinished product bythefirstindependent buyer inVenezuela inaccordance withtheprovisions
ofparagraph 1oftheprevious Article, afterdeduction ofthefollowing items:
1. Theamounts referred toinparagraphs 1,2and3ofArticle 17ofthese Regulations,
relating tothegood processed;
2. Costs andexpenses directly related totheassembly, packaging ormanufacturing
processes;
3. Anydirect orindirect selling costs inaddition tothose referred tointheprevious
paragraphs incurred bytheimporter afterthegood hasbeenimported andbefore it
issoldtoanindependent buyer. Indetermining these costs, theCommission shall
beguided bytheprovisions ofArticle 33ofthese Regulations;
4. Thegeneral andadministrative costs inaddition tothose mentioned inthepreceding
paragraphs incurred bytheimporter afterthegood hasbeenimported andbefore it
issoldtoanindependent buyer inVenezuela;
5. Areasonable margin ofprofit onthesalebytheimporter, calculated inrelation to
salesforprofit byproducers andsellers oflikegoods or,intheirabsence, ofgoods
ofthesame economic sector.
Forthedeductions referred tointhisArticle tobeapplicable, thecostsmentioned intheprevious
paragraphs must beincluded intheselling price tothefirstindependent buyer inVenezuela.
CHAPTER IV
ADJUSTMENTS RESULTING FROM PRICE COMPARISON
SECTION ONE
GENERAL PROVISIONS
ARTICLE 23:Theadjustments provided forinthisSection shallapply, asappropriate ineach
case,tothenormal value ortheexport pricecalculated inconformity withtheprovisions oftheprevious
Chapters.
ARTICLE 24:Forthepurposes oftheprice comparison referred toinArticle 7oftheLaw,
thefirststepshallbetoidentify theleveloftrade atwhich thesaleusedtodetermine theexport price
occurs, normally butnotnecessarily attheex-factory level. Secondly, itshallbedetermined whether
there areappropriate salestocalculate thenormal value ataleveloftrade equivalent tothelevelused
asabasis forthecalculation oftheexport price, inaccordance withtheruleslaiddown inChapter 2
ofthisTitle. Thirdly, ifthere arenoappropriate salestocalculate thenormal value atthesame level
oftrade, itshallbecalculated onthebasisofsalesattheleveloftradedeemed tobemostappropriate.
ARTICLE 25:When, inaccordance withtheprovisions oftheprevious Article, thenormal
value iscalculated onthebasis ofsalesataleveloftrade distinct from thelevelofthesalesusedto
calculate theexport price, thelevelwhich isthenearest andmostclosely resembles thatoftheexportG/ADP/N/1/VEN/1
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sales, taking intoaccount thevolume ofsales, thetypeofbuyer, theusemade ofthegoods soldor
theservices supplied bytheseller, shallbeidentified.
SECTION TWO
ADJUSTMENTS FOR DIFFERENCES INPHYSICAL CHARACTERISTICS
ARTICLE 26:Forthepurposes oftheadjustment provided forinArticle 7oftheLawrelative
todifferences inthephysical characteristics ofthegood allegedly dumped andthose ofthelikegood
usedtodetermine thenormal value, thecriteria referred toinArticle 2ofthese Regulations shallbe
followed. When thecomparison hasbeenmade, thenormal value ofthelikegood shallbeadjusted
inaccordance withthespecific value attributed toeachofthedifferences, onthebasis ofmarket
information obtained intherelevant place ofsale.
Where nomarket information isavailable andprovided thatthedifferences relate strictly to
thephysical characteristics, theCommission maycalculate theamount oftheadjustment according
totheshare ofthecosts, expenses andprofit margin which could reasonably beattributed toeachof
thedifferences identified.
ARTICLE 27:Incases where theadjustment fordifferences referred tointhisSection exceeds
20percentoftheexport price, itshallbeconsidered thatthegoodwhich isthesubject ofthecalculation
ofthenormal value cannot bedeemed tobealikegood inaccordance withthedefinition given in
paragraph 11ofArticle 2oftheLawandtheprovisions ofthese Regulations.
SECTION THREE
ADJUSTMENTS FOR DIFFERENCES INDUTY
ARTICLE 28:Forthepurposes oftheadjustment provided forinArticle 7oftheLaw, the
Commission shalldeduct fromthenormal value anytax,countervailing oranti-dumping dutyimposed
onthelikegood oronmaterials incorporated therein iftheyhavebeenimported intothecountry of
thesalewhich hasresulted inthedetermination ofthenormal value, aswellasanytaxlevied onthe
production ormarketing ofthelikegood inthatcountry, whether ornotimported. There shallbe
noadjustment incases where thetaxes, countervailing oranti-dumping duties havenotactually been
collected.
ARTICLE 29:TheCommission shalldeduct from theexport price anytax,countervailing
dutyoranti-dumping dutyimposed ontheallegedly dumped goodoronmaterials incorporated therein
prior totheirexport toVenezuela, provided thatsuchexport hasnotledtotherefund ofthetaxes,
countervailing duties oranti-dumping duties imposed onthesaidgood.
SECTION FOUR
ADJUSTMENTS TOSELLING COSTS FOR DIFFERENT LEVELS OFTRADE
ARTICLE 30:When theCommission hastocalculate thenormal value onthebasis ofsales
ataleveloftradedifferent tothatofthesalesusedtocalculate theexport price, thenormal value shall
beadjusted forthedirect selling costs specifically related tothelevelusedforitscalculation. Such
arelation shallbeconsidered toexistwhen itisproved totheCommission thatthecostsincurred would
bedifferent ifthesalesusedtocalculate thenormal value wereatthesame leveloftrade asthesales
usedtocalculate theexport price.G/ADP/N/1/VEN/1
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SECTION FIVE
ADJUSTMENTS TOSELLING COSTS FOR DIFFERENT QUANTITIES
ARTICLE 31:Forcostsrelated tosalesofdifferent quantities, theCommission shalldetermine
whether, inthemarket where thesalesusedasabasistocalculate thenormal value weremade, there
isacommercial policy orusage ofdiscounts, deductions, rebates orrefunds, based onthequantities
oflikegoods sold. Ifthisisthecase, itshallbedetermined whether thequantities andsalesusedto
calculate theexport pricemeetthesameconditions andanamount equivalent tothediscount, deduction,
rebate orrefund inquestion shallbededucted from thenormal value.
ARTICLE 32:Forthededuction referred tointheprevious Article tobeapplicable, the
commercial policies orusage concerned mustbeevidenced bydiscounts, deductions, rebates orrefunds
freely granted onthemarket usedasareference forthecalculation ofthenormal value andinthe
ordinary course oftrade overarepresentative period ofnotlessthansixmonths prior tothesaleof
theallegedly dumped good ordifferent periods inthecaseofcyclical orperiodic discounts. Such
discounts, deductions, rebates orrefunds mustalsorepresent atleast20percentofthetotalvolume
ofsales oflikegoods inthismarket andbegenerally anduniformly applied atthetimeofthesale
thatisallegedly thesubject ofdumping.
SECTION SIX
ADJUSTMENTS TOSELLING COSTS FOR DIFFERENT CONDITIONS
ARTICLE 33:Forcosts related tosales under different conditions, theCommission shall
distinguish between direct andindirect costs. Direct costsmeans thevariable costsandcostsspecifically
related tothesalesinquestion, forexample, financing ofsales, commissions, advertising specifically
aimed atpromoting thegoods thatarethesubject ofsuchsales, guarantees andtechnical services.
Indirect costsmeans thefixed costsincurred bytheseller independently ofthesalesmade, butrelated
tothem, forexample, provision forbaddebt, general promotion costs, remuneration ofsalesstaff,
etc.
General andadministrative costs shallnotbeconsidered indirect costs.
ARTICLE 34:TheCommission mayadjust thenormal value bythedifferences which, as
aresult ofdifferent terms oftrade, occur between thedirect costsinthesalesusedasabasistocalculate
thenormal value andthedirect costs usedasabasis tocalculate theexport price.
ARTICLE 35:Forsalesfinancing costs, theCommission shalldetermine theamount ofthe
adjustment inaccordance withprocedures which reasonably reflect thecostofmoney corresponding
totheprice during theperiod between thedispatch ofthegoods bytheseller andtheirpayment by
thebuyer, calculated according tothecurrency ofpayment.
ARTICLE36:Forguaranteecosts,theCommissionshalldeterminetheamountoftheadjustment
according tothecosts borne bytheseller inorder tohonour theguarantees onthegoods soldandin
conformity withtheirterms. Forthepurposes ofthisadjustment, theguarantees musthavebeengiven
inwriting atthetimeofsaleorcorrespond tothepractices required bylawintheplace ofsaleorby
trade custom, useorgenerally accepted practices inthemarket inquestion.G/ADP/N/1/VEN/1
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ARTICLE 37:Fortechnical service costs, theCommission shalldetermine theamount of
theadjustment according tothecostsborne bytheseller fortheprovision ofassistance, provided that
thisisinfulfilment ofcontractual obligations inwriting andisincluded intheprice paidatthetime
ofsale.
ARTICLE 38:Forindirect costs, theCommission mayonlyadjust thenormal value bythe
difference between thecosts ofthesalestocalculate theexport price andthecosts usedtocalculate
thenormal price inthefollowing cases:
1. Where thepricecomparison involves theindirect export pricereferred toinparagraph 2
ofArticle 20ofthese Regulations;
2. Wherethepricecomparisoninvolvestheexportpriceforsubsequentprocessingreferred
toinparagraph 3ofArticle 22ofthese Regulations;
3. Intheother special cases referred toinparagraph 2ofArticle 21ofthese Regulations
when theCommission takes intoaccount indirect selling costs inorder todetermine
theexport price.
Thededuction made forindirect costsfromthenormal value maynotunder anycircumstances
exceed theamount ofthededuction ofindirect costs when calculating theexport price inconformity
withthepreceding paragraphs.
TITLE II
SUBSIDIES
ARTICLE 39:Forthepurposes ofdetermining thesubsidies referred toinparagraph 13of
Article 2oftheLaw, itshallbeconsidered thatagovernment orpublic ormixed body confers an
advantage oncertain enterprises orindustries inanyofthefollowing cases:
1. Where thelegislation establishing thesubsidy expressly restricts thespecific advantages
tocertain enterprises, groups ofenterprises orindustries, legislation meaning a
regulation withgeneral scope issued bythecompetent authority, independently ofthe
government sector involved;
2. Where thelegislation establishing thesubsidy imposes general conditions thatmust
befulfilled which, eveniftheydonotdistinguish between enterprises orindustries,
have thepractical effect ofdiscriminating among types ofenterprises, groups of
enterprises orindustries, asaresult oftheproduction structure inthecountry whose
authorities grant thesubsidy;
3. Where,despitethegeneralnatureofthelegislationestablishingthesubsidy,theauthority
responsible forapplying ithasdeveloped practices which manifestly confer advantages
onspecific enterprises, groups ofenterprises orindustries rather thanothers which
would alsobeentitled tothesubsidy.
ARTICLE 40:Inaddition tothepractices mentioned inArticle 9oftheLaw,related toexports,
thefollowing internal practices, interalia,shallbeconsidered tobesubsidies:G/ADP/N/1/VEN/1
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1. Grants, allocations andother liberalities granted toexporters orproducers ofthe
subsidized good, including thecancellation orreduction ofdebtowed topublic ormixed
bodies, whether astheoriginal orthesecondary creditors;
2. Thepurchase ofshares orother forms ofcapital investment bypublic ormixed bodies
onterms thatarelessfavourable tothem thanthose prevailing inthemarket. Inthe
caseofsubscription toshares incompanies listed onthestock exchange, themarket
value shallbetheaverage priceintrading onthestock exchange onthedayofpurchase
bythepublic ormixed body. Inthecaseofshares orcapital participation incompanies
notlisted onthestock exchange, themarket value shallbethevalue inthecompany 's
books, butiftheCommission considers thebook value tobeinappropriate andhas
sufficient andreliable information, itmayusevaluations calculated byspecialized
companiesorvaluationmethodsbasedonthecompany'scapacitytogeneratecashflows;
3. Anyother form ofinternal subsidy, thatistosaynotrelated toexports, determined
bytheCommission inconformity withparagraph 13ofArticle 2oftheLaw.
ARTICLE 41:Forthepurposes ofdetermining theamount ofthesubsidy inaccordance with
Article 10oftheLaw, theCommission shallexamine itsnature andcalculate itsimpact ontheprice
ofthesubsidized good.
ARTICLE 42:TheCommission shalldistinguish between subsidies which relate specifically
toexport ofthegood concerned bytheapplication andsubsidies which depend ontheexport activity
ofthebeneficiary company. Inthelatter case, itshall becalculated according totheproportion
corresponding totheproduction ofthesubsidized good inrelation totheproduction ofother goods
exported bythecompany benefiting fromthesubsidy. Inthecaseofinternal subsidies, thatistosay
subsidies notrelated toexport activities, theirimpact shallbecalculated onthebasis ofallthegoods
produced bythebeneficiary company, independently ofwhether ornotsuchgoods areexported.
ARTICLE 43:Inthecaseofrecurrent subsidies, namely subsidies received whenever particular
conditions recur overaperiod oftime, theiramount shallbecalculated bydividing thebenefit received
among thetotalsalesbytheexporter orproducer overtheperiod during which thesubsidy wasreceived.
Iftheperiod istwoyears ormore, theprovisions ofArticle 45ofthese Regulations shallapply.
ARTICLE 44:Forthepurpose ofcalculating theamount ofthesubsidy incases where itarises
outofcredits granted atlower ratesoronmore favourable terms thanthose which thebeneficiaries
could obtain onthecorresponding markets, adistinction shall bedrawn between short-term and
medium-term orlong-term credits. Theamount ofshort-term credit shallbedetermined inconformity
withtheprocedure laiddown intheprevious Article forrecurrent subsidies totheextent thatitis
applicable. Medium-term orlong-term credits shallbecalculated asfaraspossible according tothe
procedure laiddown inthefollowing Article fornon-recurrent subsidies.
SINGLE PARAGRAPH: Short-term credits means those forwhich thetermforrepayment
ofthecapital islessthantwoyears. Credits whose termistwoyears ormore shallbeconsidered
medium-term orlong-term credits. Credits withatermoflessthantwoyears maybeconsidered
medium-term orlong-term credits ifitcanbesatisfactorily proved thatthecreditor follows aconstant
anduncontested practice ofautomatically renewing orextending thetermfortherepayment ofcapital
byadditional periods which, taken together withtheinitial period, amount totwoyears ormore.
ARTICLE 45:Inthecaseofnon-recurrent subsidies, thenumber ofyears overwhich their
benefits havetobespread shallbecalculated. Forthispurpose, aperiod oftenyears shallbeutilizedG/ADP/N/1/VEN/1
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asabenchmark, except incaseswhere itisdemonstrated thatthebenefit consists intheuseofaparticular
asset, when ashorter period maybeused, based ontheperiod ofamortization ordepreciation ofthe
assetinconformity withgenerally accepted accounting principles inthecountry inwhich thesubsidy
isconferred.
When theperiod ofapplication hasbeendetermined, thevalue ofthebenefit shallbediscounted
ataratewhich reasonably reflects thecapital costsfortheexporter orproducer atthetimeofreceiving
thebenefit. Forthepurposes ofdetermining thediscount rate, themost appropriate financial
methodology taking intoaccount theinformation available shallbeused.
TITLE III
INJURY
ARTICLE 46:Forthepurposes ofthedetermination referred toinArticle 11oftheLaw,
itmust bedemonstrated totheCommission 'ssatisfaction thatthere isacausal relationship between
theimport ofdumped orsubsidized goods andanyofthefollowing:
1. Theexistenceofmaterialinjurytothedomesticindustryproducinglikegoods.Material
injury means anysignificant andsubstantial damage tothedomestic industry;
2. Thethreat ofmaterial injury tothedomestic industry producing likegoods, in
accordance withArticle 51ofthese Regulations;
3. Appreciable material retardation ofthestart-up ofthedomestic industry producing
likegoods, inaccordance withArticle 52ofthese Regulations.
ARTICLE 47:Forthepurposes ofArticle 14oftheLaw, themajor proportion ofdomestic
industryshallmeanthoseproducersrepresentingatleast30percentofdomesticindustry.Exceptionally,
ifthespecial circumstances oftheproduction structure inquestion sorequire, theCommission may
useasabenchmark ahigher percentage, which maynotunder anycircumstances exceed 40percent,
oralower percentage, which maynotbelessthan20percent.
ARTICLE 48:Forthepurposes ofdetermining injury orthreat ofinjury, thefollowing
producers shallnotbeincluded among domestic producers constituting domestic industry:
1. Producers associated withexporters;
2. Producers whothemselves import thedumped orsubsidized good;
3. Producers whose industrial activity doesnotresult intheactual processing oftheinputs
constituting thelikegood. Inexcluding suchproducers, theCommission shalltake
intoaccount theorigin andcharacteristics oftheinputs usedinthelikegood, aswell
asthevalue added bytheproduction process.
SINGLE PARAGRAPH: Incases where itisdetermined thatthedomestic industry is
insignificant inrelation totheVenezuelan market forlikegoods, itmaybeconcluded, asanexception,
thatthereisnoinjury orthreat ofinjury todomestic industry. Thedomestic industry shallbeconsidered
insignificant when, afterhaving excluded theproducers mentioned inthisArticle, itdoesnotrepresent
more than5percentoftheconsumption oflikegoods inthecountry, except where, incases ofalower
percentage,itisdemonstratedtotheCommission'ssatisfactionthatthedomesticindustryhasexperiencedG/ADP/N/1/VEN/1
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significant andsustained growth overaperiod which allows ittobereasonably inferred thattherewill
beasimilar growth trend inthefuture.
ARTICLE 49:Where theinterested party claims thatinthecountry ofexport oroforigin
proof ofinjury isnotrequired, hemustsubmit proof ofthisclaim together withhisapplication; without
detriment totheCommission 'spower todecide whether ornotthere isinjury orthreat ofinjury or
material retardation ofthestart-up ofthedomestic industry, inconformity withthesingle paragraph
ofArticle 11oftheLaw.
ARTICLE 50:Itshallbedetermined thatthere ismaterial injury tothedomestic industry
producing likegoods when atleasttwoofthefollowing conditions aremet:
1. Thevolume ofdumped orsubsidized imports issignificant andhasincreased inabsolute
terms orrelative tothedomestic production oflikegoods. Thevolume ofimports
ofdumped orsubsidized goods shallbeconsidered significant when itrepresents at
leastfivepercent(5%) ofthedomestic production oflikegoods. TheCommission
maybaseitsdecisions ondifferent percentages when, initsview, thecircumstances
ofthecasesorequire;
2. Imports ofdumped orsubsidized goods aresoldatprices considerably lower thanthose
forlikegoods produced inthecountry, orhavetheeffect ofdepressing prices or
preventing increases which, ifsuchgoods hadnotbeenimported, would haveoccurred
inanatural andcompetitive manner;
3. Importsofdumpedorsubsidizedgoodshaveanadverseimpactonproducersofdomestic
likegoods, taking intoaccount theirrelative position under thefollowing headings:
unitsproduced; sales; market share; profits; return oninvestment; utilization of
installed capacity; cashflow; inventories; growth, prices ofdomestic inputs,
investment plans; ability toobtain credit, aswellasanyother relevant element. The
Commission maydetermine which oftheaforementioned headings apply toan
investigation.
Fulfilment oftherequirements laiddown inthisArticle aretobeunderstood within theconcept
ofthedomestic industry.
ARTICLE 51:TheCommission shalldetermine thatthere isathreat ofmaterial injury to
thedomestic industry producing likegoods when itconsiders thatthethreat isrealandcertain and
thattheinjury isimminent. Indoing so,itshalltakeintoaccount thefollowing factors:
1. Thenature ofthesubsidy inthecaseofimports ofsubsidized goods. TheCommission
shalltakeintoaccount direct subsidies andsubsidies related toexports, especially those
which exceed fivepercent(5%) advalorem;
2. Increases inproduction capacity, oridlecapacity, inthecountry oforigin, provided
thatthere aresufficient indications thatsuchincreases mayresult inanincrease of
exports toVenezuela;
3. Accelerated increases intheshare ofthedomestic market ofdumped orsubsidized
goods which havenotyetresulted ininjury, inaccordance withArticle 50ofthese
Regulations;G/ADP/N/1/VEN/1
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4. Over-production orthebuild-up ofinventories inthecountry oforigin ofthedumped
orsubsidized goods, withthelikelihood thattheywillbeexported toVenezuela;
5. Thebuilding upofinventories ofdumped orsubsidized goods inVenezuela, evenif
theyhavenotyetbeensoldthere;
6. Theability oftheproducer abroad toreplace theproduction ofgoods subject to
anti-dumping orcountervailing duties inVenezuela bytheproduction ofdumped or
subsidized goods notsubject toanti-dumping orcountervailing duties;
7. Anytrendinsalesandexports ofdumped orsubsidized goods which pointtoanincrease
intheexport ofsuchgoods toVenezuela;
8. Other circumstances which theCommission seesfittoconsider.
ARTICLE 52:Adeterminationofappreciablematerialretardationinthestart-upofthedomestic
industry producing likegoods shallbebased onevaluation ofthepotential ofthedomestic industry
atthetimewhen import ofthedumped orsubsidized goods commences orisimminent, inorder to
establish whether ornotsuchimports hadanadverse effect ontheprobable development ofthispotential.
Forthispurpose, thefollowing factors concerning thedomestic industry shallbetaken intoaccount:
1. Projected performance compared withactual performance;
2. Utilization ofproduction capacity;
3. Thesituation oforders anddeliveries;
4. Thefinancial situation;
5. Other circumstances which theCommission seesfittoconsider.
TITLE IV
ANTI-DUMPING AND COUNTERVAILING DUTIES
ARTICLE 53:Theprovisional anti-dumping orcountervailing duties referred toinArticle 19
oftheLawshallbeimposed when theneedtoprevent injury tothedomestic industry during theperiod
oftheinvestigation hasbeendetermined. Forthispurpose, there shallbeapreliminary verification
offulfilment oftheconditions referred toinArticles 50,51and52oftheseRegulations, asappropriate.
ARTICLE 54:Provisional ordefinitive anti-dumping orcountervailing duties shallalsobe
imposed ongoods imported intheformofinputs orcomponents offinished goods referred toinArticle 5
ofthese Regulations when theCommission determines thatthepurpose ofimporting theminthisform
istoavoid suchduties.
ARTICLE 55:Anti-dumping orcountervailing duties shallbeapplied independently ofcustoms
duties andother levies ontheimport ofgoods intoVenezuela andshallbepayable bytheperson liable
forpaying thecustoms charges.
Fortheadditional duties referred toinArticle 22oftheLawtobeapplicable, there shallnot
havebeenanyincrease intheselling price tothefirstindependent buyer tocompensate forthedutiesG/ADP/N/1/VEN/1
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paidbytheexporter, without prejudice totheabsence ofanincrease inthesaidprice constituting the
indication referred tointhesingle paragraph ofthesaidArticle.
TITLE V
UNDERTAKINGS
ARTICLE 56:Inconformity withArticle 24oftheLaw, theCommission shallevaluate any
undertaking submitted toitandshalldecide onitsacceptance andapproval within aperiod notexceeding
thirty (30)working daysfrom thedateofsubmission ofthecorresponding application. Inorder to
facilitatetheevaluationtobemade,theCommissionmaytakepartinthenegotiationsontheundertaking.
ARTICLE 57:Anundertaking mayberejected inthefollowing cases:
1. Where thedomestic producers party totheundertaking donotrepresent fiftypercent
(50%) ofdomestic production. When thepercentage isnotveryrepresentative of
domestic producers asawhole, itmayalsoberequired thatthedomestic producers
should represent aproportion equivalent toeighty percent(80%) ofthose involved
indomestic production, inconformity withArticle 14oftheLaw;
2. Where theCommission considers thattheundertaking isimpractical orimpossible to
apply effectively, forexample, ifthenumber ofactual orpotential exporters istoo
high;
3. Where itisdetermined thattheundertaking goesbeyond theobjective ofoffsetting
thedumping orsubsidy related totheimports under investigation;
4. Inanyother caseinwhich theCommission sodecides, according tothecircumstances.
ARTICLE 58:Inallcases where theundertaking submitted totheCommission involves
modification oftheprices ofthedumped orsubsidized products orareduction inexports ofsuchgoods
toVenezuela, theviews oftheDepartment forthePromotion andProtection ofFreeCompetition may
besought.
ARTICLE 59:Undertakings which restrict oreliminate subsidies shallnotbeaccepted without
prior consultation andevidence thatthecompetent authorities inthecountry granting thesubsidy are
aware ofandhaveapproved theundertaking. Wherever possible, theevidence shallinclude adeclaration
bytheaforesaid authorities undertaking nottogrant thesubsidy ortorestrict ittotheextent agreed.
ARTICLE 60:Undertakings which havebeenaccepted andapproved bytheCommission may
beamendedfollowinganapplicationbyaninterestedpartyorwhentheCommissionconsidersnecessary,
attheintervals specified inthedecision approving theundertaking, which maynotbelessthanone
(1)year. Nevertheless, acceptance andapproval maybecancelled bytheCommission before oneyear
hasexpired when itconsiders thatthecauses which gaverisetotheundertaking haveceased toexist
orwhen itnotes thattheundertaking isnotbeing applied.G/ADP/N/1/VEN/1
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TITLE VI
PROCEDURE
CHAPTER I
GENERAL PROVISIONS
SECTION ONE
ADMISSIBILITY OFTHE APPLICATION
ARTICLE 61:Inorder tomeettherequirement laiddown inparagraph 2ofArticle 39of
theLaw, theapplication fortheopening upofaninvestigation shallcontain afulldescription ofthe
goodallegedlydumpedorsubsidized.Thedescriptionshallshowthenameandanyadditionalidentifying
data, aswellasinformation onthefollowing elements bymarketing unit: size,volume andweight;
inputs orcomponents; useorenduse;quality; technical specifications, ifany;andtariffclassification.
ARTICLE 62:Inorder tomeettherequirement laiddown inparagraph 3ofArticle 39of
theLaw, theapplication fortheopening upofaninvestigation shallcontain afulldescription ofthe
likegood produced inVenezuela, including alltheinformation required fortheallegedly dumped or
subsidized good inaccordance withtheprevious Article, withparticular emphasis onthefollowing:
1. Description andsource ofthecomponents andinputs incorporated inthelikegood;
2. Description oftheproduction process forthelikegood, withanindication ofanyknown
aspects oftheprocess thatdiffer from those usedbytheproducers oftheallegedly
dumped orsubsidized good;
3. Theapplication shallalsoindicate themarket price ofthegood, itsfactory price and
itsproduction cost.
ARTICLE 63:Inorder tomeet therequirement laiddown inparagraph 4ofArticle 39of
theLaw, inthecaseofdumping, theapplication fortheopening upofaninvestigation shallcontain
thefollowing information:
1. With regard tothenormal value, anindication oftheselling price oflikegoods to
buyers inthecountry ofexport oroforigin. Thisindication shallbeaccompanied
byquotations, price lists,commercial invoices oranyother instrument which, inthe
opinion oftheTechnical Secretariat, confirms theprice indicated bytheapplicant;
2. With regard totheexport price, anindication ofthisprice or,initsabsence, ofthe
f.o.b. (freeonboard) price oftheallegedly dumped good, confirmed byquotations,
commercial invoices, pricelistsoranyotherinstrument which isacceptable intheview
oftheTechnical Secretariat. Where itisnotpossible toobtain suchinformation, the
applicant mayestimate theexport price, deducting thenecessary elements from the
selling price inVenezuela oftheallegedly dumped good, based ontheconcepts set
outinArticle 20ofthese Regulations orinArticles 21and22ifapplicable. Insuch
cases, theprice inVenezuela shallbeauthenticated bythemeans indicated.G/ADP/N/1/VEN/1
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Where therequirements provided forinArticle 8ofthese Regulations arenotfulfilled, the
application shallcontain information onthecompared export value, orinitsabsence, thecomputed
value.
ARTICLE 64:Inorder tomeet therequirement laiddown inparagraph 4ofArticle 39of
theLaw, inthecaseofsubsidies, theapplication fortheopening ofaninvestigation shallindicate the
following: thetypeofsubsidy; ifitisamong those mentioned inArticle 9oftheLaw; andtheelements
which determine thattheexporter ortheproducer isentitled tothesubsidy. Forthese purposes, the
application shallinclude thelegal oradministrative instrument conferring thesubsidy andshowing
itscharacteristics.
ARTICLE 65:Inorder tomeettherequirement laiddown inparagraph 4ofArticle 39of
theLaw, withregard toinjury, theapplication fortheopening ofaninvestigation shallinclude evidence
on:
1. Production oftheapplicant overtheprevious two(2)years andaprojection forthe
current yearasatthetimewhen theapplication ismade;
2. Decrease intheshare ofthedomestic industry intheVenezuelan market affected by
thegoods allegedly dumped orsubsidized;
3. Decrease inprofits fromsalesbytheapplicant which compete withthegoods allegedly
dumped orsubsidized;
4. Deterioration intheprices oftheapplicant 'sgoods which compete withthegoods
allegedly dumped orsubsidized;
5. Decrease inthevolume oftheapplicant 'ssaleswhich compete withthegoods allegedly
dumped orsubsidized.
ARTICLE 66:Theapplication fortheopening ofaninvestigation shallcontain theinformation
needed toidentify andnotify theimporters andexporters concerned. Thelackofthisinformation shall
beconsidered adefect intheapplication fortheopening ofaninvestigation, withtheeffects provided
forinthesingle paragraph ofArticle 40oftheLaw.
ARTICLE 67:Inallcases where theapplicant doesnotrespect thetime-limit offifteen (15)
working daysfixed inthesingle paragraph ofArticle 40oftheLawforremedying anyomissions or
inadequacies noted bytheTechnical Secretariat, theapplication shallbeconsidered inadmissible without
itbeing necessary toissue anydecision tothateffect.
ARTICLE 68:Arequest forreconsideration andanappeal toahigher body, asprovided for
intheBasic LawonAdministrative Procedure, maybemade against adecision taken bytheTechnical
Secretariat inaccordance withthesingle paragraph ofArticle 40oftheLaw.
SECTION TWO
INVESTIGATION PROCEDURE
ARTICLE 69:TheCommission shallimmediately notify theapplicant andtheimporters of
thedecision toopenaninvestigation. Theannouncement containing anextract fromthedecision shall
bepublished intwo(2)newspapers withbroad national circulation attheexpense oftheapplicant,G/ADP/N/1/VEN/1
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whoshallprovide theTechnical Secretariat withcopies ofthenewspapers inwhich theannouncement
hasbeenpublished. When thisformality hasbeencompleted, theTechnical Secretariat shallinitiate
theinvestigation.
ARTICLE 70:Forthepurposes ofcollecting theinformation referred toinArticle 43ofthe
Law, theTechnical Secretariat shallsendquestionnaires andforms totheinterested parties, whoshall
furnish theinformation requested within thetime-limit laiddown intheaforesaid documents. Failure
tomeetthisobligation shallgiverisetotheprocedure laiddown inArticle 46oftheLaw.
Thequestionnaires andforms referred toabove mayalsobegiven tothepublic bodies mentioned
inArticle 34oftheLaw, which shallcollaborate withtheCommission andtheTechnical Secretariat
inproviding information.
ARTICLE 71:Attherequest ofaparty, theTechnical Secretariat maydetermine thatthe
information provided isconfidential, inaccordance withArticle 48oftheLaw, placing itinaseparate
partofthefile.
ARTICLE 72:Where theTechnical Secretariat declares thattherearenogrounds fortreating
theinformation asconfidential, itshallorder thattheinformation beincluded intherelevant file,after
notifying theinterested party sothathemaywithdraw theinformation ifheseesfittodoso.Anappeal
toreconsider thisdecision maybemade totheTechnical Secretariat andanappeal toahigher body
maybemade totheCommission inaccordance withtheprovisions oftheBasic LawonAdministrative
Procedure.
ARTICLE 73:Thetime-limit forconcluding theinvestigation shallbeone(1)yearfromthe
dateonwhich itwasinitiated inaccordance withArticle 69ofthese Regulations.
ARTICLE 74:TheCommission 'sdecisions shallbepublished intheOfficial Gazette ofthe
Republic ofVenezuela andinthebiannual bulletin oftheCommission.
SECTION THREE
DEFINITIVE DUTIES
ARTICLE 75:TheCommission 'sdecision toimpose anti-dumping orcountervailing duties
shallimmediately benotified totheSectoral General Directorate ofCustoms oftheMinistry ofFinance,
together withthetextofthedecision. Copies ofthedecision shallalsobesenttotheMinisters for
Finance andDevelopment, andtothePresident oftheForeign Trade Institute.
ARTICLE 76:Assoonasthenotification referred tointheprevious Article hasbeenreceived,
theSectoral Director-General ofCustoms shallissue thenecessary instructions forthecollection of
theanti-dumping orcountervailing duties inconformity withArticle 54oftheLaw.
ARTICLE 77:TheMinistry ofFinance, through theSectoral General Directorate ofCustoms,
shallgivetheCommission eachmonth abreakdown ofthefollowing information relating tothegoods
subject totheduties:
1. Theamount collected onaccount ofprovisional anddefinitive anti-dumping or
countervailing duties during theprevious month;
2. Alistofthesecurities lodged fortheprovisional duties thathavebeenimposed.G/ADP/N/1/VEN/1
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Theinformation referred tointhisArticle shallbespecified according tothevolume ofimports,
andtheimporter orconsignee accepting thegoods.
CHAPTER II
PROVISIONAL DUTIES
ARTICLE 78:Aninterested party maysubmit arequest fortheimposition ofprovisional
anti-dumping orcountervailing duties, atthesame timeasanapplication fortheinitiation ofan
investigation oratanytimeduring theinvestigation.
ARTICLE 79:TheCommission shalldecide whether toimpose provisional anti-dumping or
countervailing duties within thetime-limit laiddown inArticle 60oftheBasic LawonAdministrative
Procedure calculated fromthedateofthedecision toopenaninvestigation intodumping orsubsidies,
without prejudice tothesubsequent imposition ofprovisional anti-dumping orcountervailing duties
when, inthecourse oftheinvestigation, additional evidence justifying suchduties isobtained.
ARTICLE 80:Inthecaseoftheagricultural products referred tointhesingle paragraph of
Article 60oftheLaw, therequest fortheimposition ofprovisional countervailing duties shallbemade
atthetimeofsubmitting theapplication fortheopening ofaninvestigation andshall include the
information necessary toidentify andnotify theimporters concerned, together withwhattheTechnical
Secretariat considers issufficient evidence ofthefollowing:
1. Thatthesubsidy isfullyeffective inthecountry oforigin orofexport;
2. That, inaccordance withthelegalfactsofthecase, thesubsidy would beapplicable
totheexporter orproducer ofthegood investigated;
3. Thatthecorresponding official publications donotraisedoubts concerning theform,
amount andeffects ofthesubsidy.
When theapplication hasbeenreceived, theimporters shallbenotified oftheimposition of
provisional duties.
ARTICLE 81:Theduration ofprovisional anti-dumping orcountervailing duties shallnot
exceed four(4)months fromthedateofpublication ofthedecision toimpose suchduties intheOfficial
Gazette. Nevertheless, theCommission mayextend theduration oftheduties byadditional periods
which, asawhole, shallnotexceed one(1)yearfromthedateofinitiation oftheinvestigation provided
thatduring thecourse oftheinvestigation evidence isobtained tosupport theserious presumption which
gaverisetotheimposition ofsuchduties.
ARTICLE 82:When theprovisional anti-dumping orcountervailing duties havebeenimposed,
theprocedure laiddown inArticles 75etseqofthese Regulations shallbefollowed.
TITLE VIII
FINAL PROVISION
ARTICLE 83:These regulations shallapply fromthedateoftheirentry intoforce, andshall
alsoapply toprocedures already initiated.G/ADP/N/1/VEN/1
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Done atCaracas, onthefifthdayofthemonth ofApril oftheyearonethousand ninehundred
andninety three. The182nd yearofindependence andthe134th yearoftheFederation.
(Signed) CARLOS ANDRES PEREZ
Countersigned by:
Minister forInternal Relations, JESUS R.CARMONA BORJAS
Minister forExternal Relations, FERNANDO GERBASI
Minister forFinance, PEDRO ROSAS BRAVO
Minister forDefence, IVAN JIMENEZ SANCHEZ
Minister forDevelopment, FRANK DEARMAS MORENO
Minister forEducation, PEDRO AUGUSTO BEAUPERTHUY
Minister forHealth andSocial Welfare, RAFAEL ORIHUELA
Minister forAgriculture andLivestock, PEDRO LUIS URRIOLA BARRIOS
Minister forLabour, JESUS RUBEN RODRIGUEZ V.
Minister forTransport andCommunications, FERNANDO MARTINEZ M.
Minister forJustice, JOSE FRANCISCO CUMARE NAVAS
Minister forEnergy andMines, RAFAEL M.GUEVARA
Minister fortheEnvironment andRenewable Natural Resources, ENRIQUE COLMENARES FINOL
Minister forUrban Development, DIOGENES MUJICA
Minster fortheFamily, TERESA ALBANEZ BARNOLA
Minster fortheSecretariat ofthePresidency, CELESTINO ARMAS
Minister ofState, RICARDO HAUSMANN
Minister ofState, LEOPOLDO SUCRE FIGARELLAG/ADP/N/1/VEN/1
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OFFICIAL GAZETTE OFTHE REPUBLIC OFVENEZUELA
Year CXIX -Month IX Caracas, Thursday, 18June1992 Special edition No.4.441
CONTENTS
CONGRESS OFTHE REPUBLIC
LAW ONUNFAIR FOREIGN TRADE PRACTICES
TheCongress OfTheRepublic OfVenezuela
Decrees
Thefollowing:
CHAPTER I
GENERAL PROVISIONS
ARTICLE 1:ThisLawregulates thepolicies, guidelines andmeasures aimed atforestalling
andpreventing theadverse effects ondomestic industry ofimports ofgoods under dumping conditions
orofgoods whose production, manufacture, storage, transport orexport hasbeensubsidized, orwhose
rawmaterials orinputs have been subsidized, inallcases where theprovisions oftheCartagena
Agreement ondistortions incompetition arising outofdumping orsubsidy practices arenotapplicable.
ARTICLE 2:Forthepurposes ofthisLaw, thefollowing definitions apply:
1. Commission: TheAnti-Dumping andSubsidies Commission established under this
Law;
2. Anti-dumping duty: Aprovisional ordefinitive special levyestablished tocounteract
theprejudicial effects ofimports under dumping conditions;
3. Countervailing duty: Aprovisional ordefinitive special levyestablished tocounteract
anydirectorindirectsubsidygrantedforthemanufacture,production,storage,transport
orexport ofagood, including subsidies granted foritsrawmaterials orinputs;
4. Dumping: Theintroduction ofgoods formarketing orconsumption inVenezuela at
lessthantheirnormal value;
5. Margin ofdumping: Theamount bywhich thenormal value exceeds theexport price;
6. Other interested parties:
(a) Theforeign producer orexporter ofthegood investigated;
(b) Theimporter ofthesaidgood;G/ADP/N/1/VEN/1
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(c) Chambers orassociations themajority ofwhose members areproducers,
exporters orimporters ofthesaidgood oralikegood;
(d) Thegovernment ofthecountry ofexport oroforigin, asappropriate;
(e) Theproducer ofalikegood inVenezuela;
(f) Theindustrial users ofthegood investigated;
(g) Consumer organizations incases where thegood isusually soldattheretail
level; and
(h) Other natural orlegalpersons whose direct personal andindividual rights or
legitimate interests might beaffected bytheprocedure fordetermining dumping
orsubsidies orbyitsoutcome, intheopinion oftheCommission.
7. Country ofexport: Country from which thedumped orsubsidized good isdirectly
dispatched toVenezuela;
8. Country oforigin: Country inwhich thedumped orsubsidized good originated;
9. Export price: Theprice established inconformity withtheguidelines inArticle 6of
thisLaw;
10. Dumped good: Agood whose export price islessthanitsnormal value;
11. Likegood: Agood which isidentical toorasubstitute forthedumped orsubsidized
good, oranyother good whose characteristics andutilization closely resemble those
ofthedumped orsubsidized good;
12. Technical Secretariat: TheTechnical Secretariat oftheCommission;
13. Subsidy: Anyfinancial contribution, bounty, aid,form ofsubvention orpremium
established byagovernment orapublic ormixed body inaforeign country, orany
form ofincome orprice support, through which abenefit isconferred onspecific
enterprises orbranches ofindustry inaddition tothose conferred onother enterprises
orbranches ofindustry;
14. Normal value: Forthepurposes ofthisLaw, normal value means thecomparable price
actually paidorpayable, intheordinary course oftrade, fortheallegedly dumped
good when destined forconsumption inthecountry ofexport oroforigin, as
appropriate;
15. Sale: Forthepurposes ofthisLaw, leasing andapromise tosellortoleaseshallbe
deemed tobeacontract ofsale; and
16. ASSOCIATED PERSONS:
(a) Natural persons whoareblood relations tothefourth degree orthesecond
degree ofrelationship bymarriage, aswellasmarried couples;G/ADP/N/1/VEN/1
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(b) Thecommon administrators oftwolegalpersons, whatever theirnature;
(c) Partners orassociates ofanylegalpersons;
(d) Employer andemployee;
(e) Persons whodirectly orindirectly control thesame person orarecontrolled
bythesame person;
(f) Twopersons oneofwhom directly orindirectly controls theother; persons
ofwhom onedirectly orindirectly owns, holds orcontrols atleastfiftyper
cent(50%) ofthevoting stock orshares orother forms ofequity participation
withvoting rights;
(g) Twopersons oneofwhom directly orindirectly owns, holds, orcontrols at
leastfiftypercent(50%) oftheother person 'svoting stock orshares orother
forms ofequity participation withvoting rights; and
(h) Other persons specified intheRegulations.
SINGLEPARAGRAPH:TheRegulationsshalldeterminethecharacteristicswhichallowrelated
persons andcompensatory agreements tobeidentified.
ARTICLE3:AgoodshallbeconsideredasbeingdumpedwhenthepriceofexporttoVenezuela
islessthanthenormal value ofalikegood.
ARTICLE 4:Anyproduct thatisdumped when imported orintheprocess ofbeing imported
intoVenezuela orwhich hasreceived subsidies maybesubject tothepayment ofanti-dumping or
countervailing duties, asappropriate, ifitcauses orthreatens tocause material injury tothedomestic
industry producing likegoods.
SINGLE PARAGRAPH: Nogood shallbesubject tobothanti-dumping andcountervailing
duties toredress thesame situation resulting from dumping orsubsidization.
CHAPTER II
DUMPING
SECTION 1
NORMAL VALUE
ARTICLE 5:Thenormal value shallbecalculated inthecountry ofexport. However, when
thegoods aremerely transshipped through thecountry ofexport orthere isnocomparable normal
value inthecountry ofexport, thenormal value shallbedetermined inthecountry oforigin ofthe
allegedly dumped goods.
Where itisnotpossible todetermine thenormal value oftheallegedly dumped goods inthe
country ofexport orcountry oroforigin because there isnodomestic market, prices arefixed bytheG/ADP/N/1/VEN/1
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State orforanyother reason, thenormal value maybecalculated bytheCommission inaccordance
withtheprocedures established forthispurpose intheRegulations.
SECTION II
EXPORT PRICE
ARTICLE 6:Theexport price shallbetheprice actually paidorpayable forthegood sold
forexport toVenezuela, netoftaxes, discounts andreductions actually granted anddirectly related
tothesalesconcerned.
WheretheCommissionconsidersthattheexportpriceisnotrepresentativeofthemarketbecause
ofassociations, agreements orcompensatory arrangements between theexporters andimporters of
thesaidgood, theexport price maybecalculated bytheCommission inaccordance withtheruleslaid
down intheRegulations.
SECTION III
PRICE COMPARISON
ARTICLE 7:Forthepurposes ofdetermining theexistence ofdumping anditsmargin, the
normal value andtheexport priceshallbecompared fairly. Thecomparison shallbemade atthesame
leveloftrade, usually attheex-factory level, taking intoaccount thenearest possible datesandmaking
theadjustments which theCommission considers necessary foranydifferences inthephysical
characteristics ofthegoods, theimport duties andindirect taxes, selling costs forsalesatdifferent
levels oftrade, invarying quantities orunder different conditions.
FIRST PARAGRAPH: Anyoftheparties toananti-dumping investigation mayrequest an
adjustment, furnishing evidence thattherequest isjustified.
SECOND PARAGRAPH: TheRegulations ofthisLawshalldetermine theadjustments to
bemade tothenormal value orexport price, asappropriate, inorder toensure afaircomparison.
ARTICLE 8:Incomparing prices, where theprices vary, theCommission shalladopt the
following guidelines, interalia:
1. Thenormal value shallbecalculated onaweighted average;
2. Theexport priceshallbecompared withthenormal value onatransaction-to-transaction
basisiftheuseofweighted averages materially affects thefindings oftheinvestigation;
and
3. Sampling techniques maybeused, forexample, bytaking intoaccount theprices that
mostfrequently occur oraredeemed tobemostrepresentative, incases where there
isalarge number oftransactions.G/ADP/N/1/VEN/1
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CHAPTER III
SUBSIDIES
ARTICLE 9:Forthepurposes ofthisLaw, thefollowing shallbeconsidered subsidies:
1. Theprovision bygovernments ofdirect subsidies toafirmoranindustry contingent
upon export performance;
2. Mechanisms forthegranting offoreign currency oranysimilar practices which involve
abonus onexports;
3. Internal transport andfreight charges onexport shipments, provided ormandated by
governments, onterms more favourable thanfordomestic shipments;
4. Theprovision bygovernments ortheiragencies either directly orindirectly ofimported
ordomestic goods orservices foruseintheproduction ofgoods tobeexported or
soldonthedomestic market onterms orconditions more favourable thanforprovision
oflikegoods orservices, ifsuchterms orconditions aremore favourable thanthose
commercially available onworld markets totheirexporters;
5. Thefullorpartial exemption, remission ordeferral, specifically related toexports,
ofdirect taxes orsocial welfare charges paidorpayable byindustrial orcommercial
enterprises;
6. Theallowance ofspecial deductions directly related toexports orexport performance,
overandabove those granted inrespect toproduction fordomestic consumption, in
thecalculation ofthebaseonwhich direct taxes arechanged;
7. Theexemption orremission, inrespect oftheproduction anddistribution ofexported
goods, ofindirect taxes inexcess ofthose levied inrespect oftheproduction and
distribution oflikegoods when soldfordomestic consumption;
8. Theexemption, remission ordeferral ofprior-stage cumulative indirect taxesongoods
orservices used intheproduction ofgoods destined forexport inexcess ofthe
exemption, remission ordeferral ofliketaxes onlikegoods when soldfordomestic
consumption. However, suchexemption, remission ordeferral shallnotbeconsidered
asubsidy when thetaxes thatarethesubject ofsuchmeasures areapplied togoods
physically incorporated, making normal allowance, inthegoods tobeexported;
9. Theremission ordrawback ofimport charges inexcess ofthose levied onimported
goods thatarephysically incorporated inthegoodexported, making normal allowance
forwaste; however, inparticular cases, afirmmayuseaquantity ofhome market
goods equal to,andhaving thesamequality andcharacteristics as,theimported goods
asasubstitute forthem inorder tobenefit from thisprovision iftheimport andthe
corresponding export operations bothoccur within areasonable timeperiod, which
shallnotnormally exceed two(2)years;
10. Theprovision bygovernments orspecial institutions controlled bygovernments of
exportcreditguaranteeorinsuranceprogrammes,ofinsuranceorguaranteeprogrammes
against increases inthecostofexported products orofexchange riskprogrammes,G/ADP/N/1/VEN/1
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atpremium rateswhich aremanifestly inadequate tocover thelong-term operating
costs andlosses oftheprogrammes;
11. Thegrant bygovernments orspecial institutions controlled byandacting under the
authority ofgovernments ofexport credits atratesbelow those which theyactually
havetopayforthefunds soemployed, orwould havetopayiftheyborrowed on
international capital markets inorder toobtain funds ofthesame maturity andother
credit terms anddenominated inthesamecurrency astheexport credit, orthepayment
bythem ofallorpartofthecosts incurred byexporters orfinancial institutions in
obtaining credits, insofarastheyareusedtosecure amaterial advantage inthefield
ofexport credit terms; and
12. Anyothers asmaybedetermined bytheCommission inconformity withparagraph 13
ofArticle 2ofthisLaw.
ARTICLE 10:Theamount ofthesubsidy shallbecalculated inmonetary unitsoradvalorem
percentages perunitofthesubsidized product imported.
Forthepurposes ofthisLaw, thefollowing deductions shallbemade fromthetotalsubsidy:
1. Anycostnecessarily incurred inorder tobeentitled tothesubsidy ortobenefit
therefrom; and
2. Taxes, duties andotherlevies charged onexport toVenezuela withtheaimofoffsetting
thesubsidy.
Anyperson requesting theabove-mentioned deductions shallprove tothesatisfaction ofthe
Commission thatthere aregrounds formaking them.
CHAPTER IV
INJURY
ARTICLE 11:TheCommission shalldetermine theexistence orthreat ofmaterial injury to
thedomestic industry producing likegoods ormaterial retardation ofthestart-up ofsuchanindustry
duetotheimport ofdumped orsubsidized goods.
SINGLEPARAGRAPH:Inexercisingthisresponsibility,theCommissionshallconsiderwhether
thecountry ofexport oroforigin, asappropriate, requires ormight require proof ofinjury, threat
ofinjury ormaterial retardation caused toVenezuelan exports. Ifsuchproof isnotrequired, itmay
bepresumed thatinjury, threat ofinjury ormaterial retardation exist, within themeaning ofthisArticle.
ARTICLE 12:Inorder todetermine theinjury referred tointheprevious Article, thevolume
ofdumped orsubsidized imports andtheireffect ontheprices oflikegoods onthedomestic market
aswellastheeffects ofsuchimports ondomestic goods, shallbeconsidered.
SINGLE PARAGRAPH: Ininvestigating theinjury, imports coming fromororiginating in
twoormore countries maybecumulated toassess theeffect ofthese imports ondomestic industry,
iftheimports from thecountries inquestion havebeenthesubject ofananti-dumping orsubsidy
investigation during theyearprior tothedateoftheinitiation ofthecorresponding anti-dumping or
subsidy procedure.G/ADP/N/1/VEN/1
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ARTICLE 13:Adetermination ofathreat ofinjury shallbemade onlywhen aparticular
situation maybecome asituation ofactual injury. Consequently, thedetermination shallnotbebased
onallegation, conjecture orremote possibility.
ARTICLE 14:Forthepurposes ofdetermining theexistence orthreat ofinjury, theexpression
"domestic industry" shallbeinterpreted asreferring todomestic producers asawhole oflikegoods,
ortothoseofthemwhosecollectiveoutputconstitutesamajorproportionofthetotaldomesticproduction
ofthese goods. Forthepurposes ofthisdetermination, producers associated withexporters orwho
arethemselves importers ofthedumped orsubsidized goods shallnotbetaken intoconsideration.
SINGLE PARAGRAPH: Inexceptional cases, theCommission mayconsider thatdomestic
industry isdivided intotwoormore separate markets:
1. Where themajor partoftheproduction ofagoodinaparticular region issoldinthat
region;
2. Where demand forthegoodinquestion inthatregion isnottoanysubstantial degree
supplied byproducers located elsewhere inthecountry.
Insuchcircumstances, injury maybefound toexistevenwhere amajor portion ofthedomestic
industry isnotinjured, provided thatthereisaconcentration ofdumped orsubsidized imports destined
tobemarketed orconsumed intheregion inquestion, which arecausing injury toalloramajor part
oftheproduction oflikegoods intheregion.
CHAPTER V
ANTI-DUMPING AND COUNTERVAILING DUTIES
ARTICLE 15:TheCommission mayimpose anti-dumping orcountervailing duties, as
appropriate, where there isproof oftheexistence ofdumping orthegranting ofsubsidies which is
causing orthreatening tocause material injury tothedomestic industry producing likegoods orcausing
thematerial retardation oftheestablishment ofsuchanindustry.
ARTICLE 16:Theanti-dumping orcountervailing duties tobeimposed shall under no
circumstances exceed themargin ofdumping ortheamount ofthesubsidies respectively. Anti-dumping
orcountervailing duties maybelessthantheaforementioned limits when theCommission considers
thattheyaresufficient toremove theinjury orthreat ofinjury.
ARTICLE 17:Anti-dumping andcountervailing duties maybeadvalorem specific ormixed,
whichever method isdeemed mostappropriate bytheCommission, andmaybecalculated intheforeign
currency ontheinvoice forthegood. Theequivalent amount inBolivars shallbepaid, calculated
according totheguidelines intheLawontheCentral BankofVenezuela concerning liabilities inforeign
currency.
ARTICLE 18:Where ananti-dumping orcountervailing dutyisestablished withrespect to
agood, thedutyshallbeimposed intheamount appropriate toeachcaseandwithout discrimination
onimports ofthegood, from whatever source when ithasbeendetermined thattheyaredumped or
subsidized andarecausing injury, withtheexception ofimports from sources thathaveaccepted
undertakings asprovided forinChapter VI.G/ADP/N/1/VEN/1
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TheCommissionshallinformthesupplierorsuppliersconcerned.However,ifseveralsuppliers
belonging tothesame country areinvolved anditisimpossible toidentify themall,theCommission
mayinform thecountry concerned. Ifseveral suppliers from more thanonecountry areinvolved,
theCommission mayinform allthesuppliers involved or,ifthisisnotpossible, allthesupplier countries
involved.
ARTICLE 19:Intheterms provided forinthisLaw, theCommission mayestablish provisional
anti-dumping orcountervailing duties onthebasisoftheelements available toit,provided thatithas
previously determined theexistence ofdumping orthegranting ofsubsidies, asappropriate, andthat
there issufficient proof ofinjury. TheCommission mayalsochange theamount oftheprovisional
anti-dumping orcountervailing duties established, notifying theinterested parties ofthechange by
publishing thecorresponding decision.
ARTICLE 20:Provisional anti-dumping orcountervailing duties shallbeestablished through
adecision bytheCommission showing theamount andtypeofdutyfixed, itsduration, which shall
notexceed theduration legally established fortherestoftheprocedure, thegoodconcerned, thecountry
oforigin orofexport, andthename oftheproducer orexporter.
ARTICLE 21:Theanti-dumping andcountervailing duties shallbereviewed attheintervals
indicated intheCommission 'sdecision, which shallnotbelessthanone(1)year; however, theduty
maybecancelled before theexpiry ofthisperiod when theCommission considers thatthecauses which
gaverisetothedutyhaveceased toexist.
ARTICLE 22: Where theexporter pays theprovisional ordefinitive anti-dumping or
countervailing duties, additional duties maybeimposed tooffset theamount paidbytheexporter.
Forthispurpose, anyoftheparties concerned mayprovide theCommission withevidence ofsuch
payment and,when ithasundertaken thecorresponding investigation andheard thearguments ofthose
concerned, theCommission mayimpose theaforementioned additional anti-dumping orcountervailing
duties.
SINGLE PARAGRAPH: Itshallbeconsidered anindication thattheexporter haspaidthe
anti-dumping orcountervailing duties ifthereisnoincrease intheselling pricetothefirstindependent
buyer ofthegoodsubject toanti-dumping orcountervailing duties inanamount equivalent totheduties,
unless itisproved thattheabsence ofanyincrease intheselling price isduetoareduction incosts
orintheimporters 'profits from theproduct concerned.
CHAPTER VI
UNDERTAKINGS
ARTICLE 23:TheCommission maysuspend orconclude adumping orsubsidy investigation
before taking afinaldecision ontheneed toimpose thecorresponding duties when thedomestic
producers andtheimporters oflikegoods being investigated enterintoanundertaking fortherevision
ofprices, theelimination orlimitation ofsubsidies, orthereduction orelimination ofthemargin of
dumping, aswellastheharmful effects ofsuchpractices onthedomestic industry.
When theCommission hasapproved suchanundertaking, itshallorder itspublication inthe
Official Gazette oftheRepublic ofVenezuela.
ARTICLE 24:Incases where anundertaking isaccepted, theinjury investigation shall,
neverthelessbecompletediftheCommissionsodecidesorreceivesarequesttothateffectfromexportersG/ADP/N/1/VEN/1
G/SCM/N/1/VEN/1
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representing asignificant proportion ofthetrade involved orfromthegovernment ofthecountry of
export oroforigin, whichever isappropriate. Ifitisdetermined thatthereisnoinjury, theinvestigation
shallbedefinitively concluded andtheundertaking shallbedeclared nullandvoid.
ARTICLE 25:TheCommission, through theTechnical Secretariat, mayrequest parties to
anundertaking tofurnish theinformation necessary toverify compliance withit.Failure tofurnish
thisinformation shallbeconsidered asnon-fulfilment oftheundertaking.
ARTICLE 26:Where theCommission hasgrounds forconsidering thatanundertaking has
notbeenfulfilled, itshallgivetheinterested party thirty (30)working daystopresent hisarguments
and,attheexpiry ofthisperiod, itmayapply anti-dumping orcountervailing duties based onthefacts
established asatthetimewhen theundertaking wasaccepted.
CHAPTER VII
COMPETENT AUTHORITIES
ARTICLE 27:TheAnti-Dumping andSubsidies Commission ishereby established asa
decentralized bodyunder theMinistry ofDevelopment withresponsibility forconsidering anddeciding
uponprocedures related todumping andsubsidies thatdonotcome under theBoard oftheCartagena
Agreement inconformity withtheAndean legalsystem.
TheCommission shallhaveaTechnical Secretariat withverificatory andexecutive functions.
TheCommissionshalltakedecisionswhichexhaustadministrativechannelsandshallbepublished
intheOfficial Gazette oftheRepublic ofVenezuela. Pursuant totheprovisions oftheBasic Lawon
Administrative Procedure, theyshallbenotified toallinterested parties involved intherespective
procedure.
SECTION I
THE COMMISSION AND ITSFUNCTIONS
ARTICLE 28:TheCommission shallbecomposed ofone(1)Chairman, four(4)members
andtheirrespective alternates, whoshallbeappointed bythePresident oftheRepublic intheCouncil
ofMinisters. Themembers oftheCommission shallbeVenezuelan citizens ofknown probity and
demonstrated expertise intheareaofinternational tradeoreconomics, whether asacademics, university
lecturers orprofessionals withfive(5)years'experience intheareaandsubject oftheLaw'sapplication.
SINGLE PARAGRAPH: Thefollowing maynotbeappointed members oftheCommission:
1. Persons convicted ofoffences ormisdemeanours against property orpublic property
oroffalseswearing; and
2. Persons whoareblood relations tothefourth degree ofthePresident oftheRepublic,
theMinister forDevelopment oranymember oftheCommission orthesecond degree
ofrelationship bymarriage orarethespouses ofoneoftheabove.
ARTICLE 29:TheChairman oftheCommission shallbeappointed forfour(4)years and
maybere-elected. Members andalternates shallbeappointed fortwo(2)years andmayalsobe
re-elected.G/ADP/N/1/VEN/1
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Intheabsence oftheChairman, themember appointed asVice-Chairman bytheCommission
shallactasChairman; iftheabsence isdefinitive, thechairman shallbereplaced byaperson appointed
bythePresident oftheRepublic intheCouncil ofMinisters fortheremainder ofhistermofoffice.
Therespective alternates shallreplace members during temporary absences. Members whose absence
isdefinitive shallbereplaced bypersons appointed bythePresident oftheRepublic intheCouncil
ofMinisters fortheremainder oftheirterms ofoffice.
ARTICLE 30:Members oftheCommission shallbeappointed permanently fortheirrespective
terms ofoffice andmayonlyberemoved bythePresident oftheRepublic through areasoned decision
inthefollowing cases:
1. Physical incapacity tocarry outtheirduties formore thansix(6)months;
2. Conviction foracriminal offence; and
3. Duly proved inability orfailure todischarge theirfunctions, afterhaving heard the
opinion oftheother members oftheCommission.
ARTICLE 31:TheChairman oftheCommission maynotdischarge anyotherpublic orprivate
function, except forhonorary oracademic functions conferred onhimbecause ofhisoffice.
ARTICLE 32:TheCommission shallmeetperiodically orwhen convened bytheChairman.
Foritsdeliberations tobevalid, atleastfour(4)ofitsmembers shallattend anddecisions shallbe
taken byanabsolute majority ofvotes.
Theunjustified absence ofanymember oftheCommission attwo(2)consecutive sessions
shallleadtotheimmediate convening oftherespective alternate.
ARTICLE 33:TheCommission shallhavethefollowing duties andresponsibilities:
1. Todecide ontheinitiation, suspension orconclusion ofinvestigations onpossible cases
ofdumping orsubsidies;
2. Todecide ontheexistence ofdumping orsubsidies andtheinjury theycause and,where
appropriate, toimpose provisional ordefinitive anti-dumping orcountervailing duties;
3. Where appropriate, toaccept theundertakings referred toinChapter VIofthisLaw;
4. Toadopt itsownrules ofprocedure;
5. Topublish abiannual bulletin showing thedecisions taken during theprevious six
months, withanyannotations necessary fortheirbetter understanding; and
6. Anyother responsibilities assigned toit.
ARTICLE 34:Indischarging thefunctions mentioned intheprevious Article, theCommission
anditsTechnical Secretariat shallreceive thecooperation ofother public bodies, including:
1. TheMinistry ofFinance, theMinistry ofExternal Relations andtheForeign Trade
Institute, ininvestigations todetermine theexistence ofdumping orsubsidies; andG/ADP/N/1/VEN/1
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2. TheMinistries ofAgriculture andLivestock, andofEnergy andMines indetermining
theaspects mentioned inChapter IV,according tothetypeofgoods investigated.
SECTION II
THE TECHNICAL SECRETARIAT AND ITSFUNCTIONS
ARTICLE 35:TheTechnical Secretariat shallbetheCommission 'sverificatory andexecutive
bodyandshallbedirectly subordinate toit.Itshallbeadministered bytheChairman oftheCommission
andbegiven thestaffnecessary todischarge itsresponsibilities efficiently.
FIRST PARAGRAPH: Theofficials oftheTechnical Secretariat shallbeVenezuelan citizens
ofknown probity andexperience inthematters dealt withinthisLawandshall besubject tothe
ineligibility criteria specified inArticle 28ofthisLaw.
SECOND PARAGRAPH: Theofficials andstaffoftheTechnical Secretariat shallbegoverned
bystaffrules issued bythePresident oftheRepublic intheCouncil ofMinisters. These rules shall
specify:
1. Thepersonnel administration system, including theprocedure andconditions of
recruitment, selection andemployment; classification ofposts, remuneration,
permanency, promotion, disciplinary measures, responsibility andresignation, aswell
asother aspects related tothesystem. TheChairman oftheCommission shallbe
responsible forpersonnel administration and,inthisconnection, shallensure thatthe
creation andfilling ofposts responds totherealoperational requirements ofthe
Technical Secretariat; and
2. Rights concerning dismissal, seniority, holidays, special end-of-year bonuses andsocial
security shall only begranted toofficials andstaffoftheTechnical Secretariat
individually.
ARTICLE 36:Responsibilities oftheTechnical Secretariat:
1. Toreceive ofapplications forinvestigation;
2. Tocarry outfortheprocedure todetermine theexistence ofdumping orsubsidies and
theconsequential injury, inconformity withthisLaw;
3. Tocoordinate oftherelated investigations;
4. Toapply measures necessary togiveeffect totheCommission 'sdecisions;
5. Tomaintain communication withinterested parties;
6. Tosubmit therelevant technical studies totheaforementioned Commission; and
7. Anyother responsibilities assigned toit.G/ADP/N/1/VEN/1
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CHAPTER VIII
PROCEDURES
SECTION I
GENERAL PROVISIONS
ARTICLE 37:AnynaturalorlegalpersonwhoproducesinVenezuelagoodsidenticalorsimilar
tothose allegedly dumped orsubsidized maysubmit totheTechnical Secretariat oftheCommission
anapplication fortheinitiation ofthecorresponding investigation.
ARTICLE 38:TheCommission mayalsoinitiate aninvestigation ofdumping orsubsidies
exofficio when itconsiders thatthere aresigns ofsuchpractices.
ARTICLE 39:Anapplication toinitiate aninvestigation intounfair foreign trade practices
shallcontain thefollowing requisites:
1. Theelements laiddown inArticle 49oftheBasic LawonAdministrative Procedure;
2. Thename, specifications, characteristics, useorend-use oftheforeign goodconcerned;
3. Thename, specifications, characteristics, useorend-use ofthelikegood produced
inVenezuela, together withitsmanufacturing cost,market priceandproduction cost;
and
4. Anyother factsorevidence proving thealleged dumping orsubsidies, theinjury and
thecausal relationship between them.
SINGLE PARAGRAPH: Totheextent possible fortheapplicant, theapplication shallalso
givethename andother information identifying theproducer orproducers oftheallegedly dumped
orsubsidized good; information identifying theexporter orexporters ofthesaidgoodtoVenezuela,
statistical dataonsuchexports andtheirgrowth potential; themanufacturing costandmarket price
ofthegood concerned inthecountry ofexport toVenezuela andtothird countries; information
identifying thedomestic producer orproducers ofthelikegood, aswellasanyother information
considered useful insupport oftheapplication.
ARTICLE 40:Within five(5)working daysfollowing thereceipt ofanapplication foran
investigation intounfair foreign trade practices, theTechnical Secretariat oftheCommission shall
consider thedocumentation submitted inorder todetermine whether theapplication meets the
requirements setoutintheprevious Article. Ifthisisthecase, itshall transmit thefiletothe
Commission immediately. Iftheapplication doesnotmeettherequirements, within thefollowing three
(3)working daysitshallinform theapplicant inwriting ofanyomissions orshortcomings inthe
application inrespect oftheelements indicated inArticle 39ofthisLaw.
SINGLEPARAGRAPH:Ifthereareomissionsorshortcomingsintheapplication,theTechnical
Secretariat shallgivetheapplicant aperiod offifteen (15)working daystomake good theomissions
orshortcomings noted. Iftheapplicant doesnotprovide thesupporting documentation required by
theTechnical Secretariat orifitisinsufficient, theapplication shall notproceed. TheTechnicalG/ADP/N/1/VEN/1
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Secretariat shalltakeadecision within three (3)working daysfollowing thesubmission ofthenew
information andshallnotify itsdecision totheapplicant immediately.
ARTICLE 41:When theTechnical Secretariat considers thattheapplication meets the
requirements laiddown inArticle 39ofthisLaw, itshall transmit thefiletotheCommission
immediately, together withthesupporting documents andadditional information itdeems relevant.
Within ten(10)working daysfollowing thereceipt ofthefile,theCommission shalldecide
whether toinitiate aninvestigation. Ifitdecides nottoinitiate aninvestigation, itshallgivesufficient
grounds foritsdecision andshallcommunicate ittotheapplicant immediately.
ARTICLE 42:TheCommission shallorder theinitiation ofaninvestigation through adecision
which specifies thegood, andtheimporters andexporters concerned, andthecountry oforigin orof
export. Itshallalsocontain asummary oftheother datareferred toinArticle 39ofthisLawand
shallstatethatanyotherinformation relevant totheinvestigation shallbecommunicated totheTechnical
Secretariat.
SINGLE PARAGRAPH: Thedecision toinitiate aninvestigation shall benotified tothe
applicant, andtotheimporters oftheallegedly dumped orsubsidized goods. Inaddition, an
announcement containing anextract fromthesaiddecision shallbepublished intwo(2)newspapers
withbroad national circulation tobeindicated bytheTechnical Secretariat forthispurpose. The
announcement shallstatethetime-limit forthepresentation ofarguments andevidence laiddown in
Article 45ofthisLaw.
ARTICLE 43:Theduration ofaninvestigation intodumping orsubsidies shallnotusually
belessthansix(6)months. Immediately prior tothedateofinitiating theinvestigation andduring
it,theTechnical Secretariat shallcollect alltheinformation itdeems necessary onthedumping orthe
subsidies andontheinjury which theycause ormight cause. Forthispurpose, theTechnical Secretariat
may,when itdeems appropriate, examine thebooks oftheimporters, exporters orothertraders involved
inthetransactions concerned.
TheTechnical Secretariat mayalsocarry outinvestigations inthird countries subject tothe
agreement oftheenterprises concerned andprovided thatthere isnoopposition fromthegovernment
ofthecountry inquestion, which shallbeofficially informed oftheintention tocarry outsuchan
investigation.
ARTICLE 44:Theapplicant, importers andexporters involved inaninvestigation andother
interested parties shallhaveaccess toalltheinformation provided totheCommission ortheTechnical
Secretariat byanyoftheparties concerned, withtheexception oftheinformation declared confidential
inaccordance withthisLaw.
ARTICLE 45:Thepersons mentioned intheprevious Article maypresent theirarguments
inwriting totheTechnical Secretariat within sixty (60)working daysfrom thedateofinitiation of
theinvestigation.
Within thesameperiod, theTechnical Secretariat shallgivethesaidpersons, iftheysodesire,
theopportunity tomeetinorder toexchange views andmake anyreplies. Forthispurpose, theTechnical
Secretariat shalltakeintoaccount theneedtopreserve theconfidential nature oftheinformation and
theinterests oftheparties. Noperson shallbeobliged toattend suchameeting andtheirabsence shall
notbedetrimental totheircase.G/ADP/N/1/VEN/1
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SINGLEPARAGRAPH:ForthepurposesofthisLaw,thenatureandevaluationoftheevidence
shallbegoverned bytheprovisions oftheCode ofCivil Procedure.
ARTICLE 46:Ifaparty orathirdcountry refuses toprovide thenecessary information or
doesnotdosowithin thetime-limit fixed bytheTechnical Secretariat orinanyother wayhinders
theinvestigation, preliminary ordefinitive decisions maybeadopted onthebasis oftheinformation
available.IftheCommissionfindsthattheinformationsubmittedisfalseormisleading,itshalldisregard
theinformation andreject theapplications bytheperson whosubmitted it.
ARTICLE 47:Theexistence ofananti-dumping orsubsidy investigation shallnothinder the
procedures ofcustoms clearance ofthegoods investigated.
ARTICLE 48:TheCommission andtheTechnical Secretariat shallnotdisclose anyinformation
received during thecourse ofananti-dumping orsubsidy investigation when theparty providing such
information requests thatitshould betreated asconfidential. Forthispurpose, theparty concerned
shallindicate thegrounds fortreating theinformation asconfidential andshallattach anon-confidential
summary oranexplanation ofthereasons whysuchasummary cannot bemade.
SINGLE PARAGRAPH: Arequest forconfidential treatment shallbedealtwithaccording
towhether disclosure oftheinformation would beofsignificant advantage toacompetitor orwould
haveanyother adverse effect upon theperson providing theinformation orupon athirdparty.
ARTICLE 49:Where theTechnical Secretariat considers thattherequest totreatinformation
provided asconfidential isnotwarranted, theinformation shallbeattached tothefilewithout prejudice
totheinformant 'srighttowithdraw itifhesowishes.
ARTICLE 50:Inthecaseoflegalproceedings ofwhatever nature related toanti-dumping
orsubsidy investigations oritsdecisions, theCommission shall, uponrequest, transmit theconfidential
information available toittothejudges concerned; insuchcases andinorder toprotect asfaras
possible thelegitimate interest oftheparties innon-disclosure oftheirtrade secrets, theCommission
shall inform thejudge seeking suchinformation ofitsconfidential nature sothathemaytakethe
necessary measures.
ARTICLE 51:Within thirty (30)working daysofthedateofconclusion oftheinvestigation,
which musttakeplace within one(1)yearfromthedateofitsinitiation, theCommission shalladopt
oneofthefollowing decisions:
1. Termination oftheanti-dumping orsubsidy investigation without theimposition of
anyduties andrefund ofanyprovisional duties paidorreturn ofanysecurity deposited;
or
2. Imposition ofdefinitive duties andthedefinitive levying oftheprovisional duties
imposed. Inthiscase,thetypeandamount ofduties tobeimposed shallbeestablished.
ARTICLE 52:When theCommission hasterminated ananti-dumping orsubsidy investigation,
itshallpublish thecorresponding reasoned decision ordering therefund ofanyprovisional duties paid
orthereturn ofanysecurity deposited.
ARTICLE53:WhentheCommissiondecidestoimposedefinitiveanti-dumpingorcountervailing
duties, itshallpublish thecorresponding reasoned decision containing thefollowing elements:G/ADP/N/1/VEN/1
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1. Name, specifications, characteristics, tariffclassification, useorend-use oftheforeign
good concerned;
2. Name andother information identifying theproducer orproducers ofthesaidgood,
aswellastheexporter orexporters toVenezuela;
3. Name andother information identifying theimporter orimporters ofthesaidgood
intoVenezuela;
4. Country oforigin orofexport ofthesaidgood;
5. Name, specifications, characteristics, tariff classification, useorend-use ofthelike
good inVenezuela;
6. Name andotherinformation identifying theproducer inVenezuela ofthesaidlikegood,
where appropriate;
7. Margin ofdumping, where appropriate, including adescription ofthemethod used
tocalculate it;
8. Description ofthesubsidies granted, where appropriate;
9. Description oftheinjury caused orlikely tobecaused tothedomestic industry oran
estimation ofthematerial retardation oftheestablishment ofthesaidindustry;
10. Amount ofthedefinitive anti-dumping orcountervailing duties; and
11. Method bywhich theprovisional duties imposed aretobecollected, where appropriate.
SINGLE PARAGRAPH: Without prejudice tothesingle paragraph ofArticle 4,thedecision
mayimpose countervailing duties ifbothdumping andsubsidization aswellasthecorresponding injury
arealleged andproved. Insuchcases, onlythehigher dutyshallbepaid.
ARTICLE54:TheCustomsServiceshallberesponsibleforcollectingprovisionalanddefinitive
anti-dumping orcountervailing duties andforthedefinitive collection ofprovisional duties. Provisional
duties maybepaidincashorguaranteed byasecurity from abank orinsurance company, tothe
satisfaction ofthecustoms authorities. Iftheyarepaidincash, theamount inquestion shallbekept
inaspecial account untiltheCommission decides onitsdefinitive collection oritsrefund.
ARTICLE 55:Anyinterested party whosubmits evidence ofachange incircumstances,
sufficient tojustify re-opening theproceeding under which definitive anti-dumping orcountervailing
duties wereestablished, mayrequest theCommission tore-open theinvestigation provided thatatleast
one(1)yearhaselapsed since theconclusion oftheinvestigation.
TheCommission shall decide ontheapplication tore-open theproceeding within
thirty (30)working daysfollowing itsreceipt, bymeans ofareasoned decision.
IftheCommission considers thattheproceeding should bere-opened, itshall open an
investigation inconformity withthisChapter. There-opening oftheinvestigation shallnotaffect the
measures inforce.G/ADP/N/1/VEN/1
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ARTICLE 56:Iftheimporter shows tothesatisfaction oftheCommission thattheanti-dumping
orcountervailing duties imposed exceed theactual margin ofdumping oramount ofthesubsidies,
theCommission shallorder therefund oftheexcess amounts paidtotheimporter. Forthispurpose,
theimportershallsubmittherelevantapplicationtotheTechnicalSecretariat,attachingthedocumentation
hedeems relevant.
TheCommission, through itsTechnical Secretariat, shallcarry outtherelevant investigation
andverification andshalltakeadecision within aperiod notexceeding four(4)months fromthedate
oftheapplication.
ARTICLE 57:Anti-dumping orcountervailing duties shallremain inforce onlyaslongas
necessary tocounteract theinjury caused bydumping orsubsidies, unless onthisbasistheCommission
decides toeliminate them, bymeans ofareasoned decision. Anti-dumping orcountervailing duties
andundertakings shallexpire five(5)years afterthedateonwhich theyentered intoforce orwere
lastmodified. Nevertheless, ifanyinterested party considers thattheexpiry oftheanti-dumping or
countervailing duties orundertakings would result inrenewed injury orthreat ofinjury, itmaysubmit
itsarguments tothiseffect totheCommission inwriting within thirty (30)working daysimmediately
prior totheperiod ofthirty (30)working daysbefore theexpiry ofthemeasures. TheCommission
mayextend anti-dumping orcountervailing duties orundertakings before theirexpiry forasingle period
notexceeding five(5)years from thedateonwhich theyshould originally haveexpired.
ARTICLE 58: When anti-dumping orcountervailing duties orundertakings expire, an
announcement tothateffect shallbepublished intheOfficial Gazette oftheRepublic ofVenezuela,
indicating thecorresponding dateofexpiry.
ARTICLE 59:Where, afterhaving carried outtheprocedure anddeclared unfounded an
application foraninvestigation intounfair foreign trade practices, theCommission considers thatthe
application wasfrivolous ormalicious, itmayimpose afineofupto1million Bolivars (Bs.1,000,000)
ontheapplicant without prejudice toanycivilaction bytheaccused party.
SECTION II
PROVISIONAL DUTIES
ARTICLE 60:After theinitiation ofaninvestigation hasbeenannounced, provided there is
evidence leading toaserious presumption oftheexistence ofanunfair foreign trade practice causing
injury tothedomestic industry, theCommission mayagree toimpose provisional anti-dumping or
countervailing duties ontheallegedly dumped orsubsidized goods, inconformity withChapter V.
Theimposition ofprovisional duties shallbenotified immediately totheimporter ofthegoods subject
tothemeasure andtothecustoms authorities.
SINGLE PARAGRAPH: Inthecaseofagricultural products forwhich thecountry oforigin
hasgranted subsidies whose nature, amount andeffects canbedetermined onthebasis ofofficial
publications andbudgets ofthecountry concerned, theCommission shall impose provisional
countervailing duties tooffset themargin ofthesubsidy fixed, assoon asitreceives therelevant
information.
ARTICLE 61:Provisional anti-dumping orcountervailing duties maybepaidincashor
guaranteed byasecurity issued byabank orinsurance company domiciled inthecountry, tothe
satisfaction oftheCommission.G/ADP/N/1/VEN/1
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SINGLE PARAGRAPH: Theimposition ofprovisional duties paidorguaranteed byasecurity
shallnothinder thecustoms clearance oftheallegedly dumped orsubsidized goods.
CHAPTER IX
TRANSITIONAL PROVISION
ARTICLE 62:ThisLawshallenterintoforce sixty(60)successive daysfromitspublication
intheOfficial Gazette oftheRepublic ofVenezuela.
Done, signed andsealed inthePalacio Federal Legislativo atCaracas onthetwenty-sixth day
ofthemonth ofMay, onethousand ninehundred andninety-two, the182nd yearofindependence and
the133rd yearoftheFederation.
ThePresident Pedro Paris Montesinos
TheVice-President LuisEnrique Oberto G.
Secretaries LuisAquiles Moreno Cirimele
Douglas Estanga Fajardo
Palacio deMiraflores, atCaracas, ontheeighteenth dayofJune, onethousand ninehundred
andninety-two, the182nd yearofindependence andthe133rd yearoftheFederation.
Forimplementation (L.S.) Carlos Andres Perez
Countersigned:
TheMinister forForeign Relations (L.S.) Fernando Ochoa Antich
Countersigned:
TheMinister forDevelopment (L.S.) Frank deArmas Moreno
Fifty-fifth Regular Session oftheCommission
21-22 March 1991
Lima, Peru
DECISION 283
Rules toprevent orredress
distortions incompetition
arising outofdumping or
subsidy practices
THE COMMISSION OFTHE CARTAGENA AGREEMENT,
HAVING REGARD: ToChapter VIIIoftheCartagena Agreement, Decisions 230,258,281
andProposal 223/Rev.3 oftheBoard;G/ADP/N/1/VEN/1
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CONSIDERING:
ThattheCommission adopted Decision 230establishing rules forpreventing orremedying
practices thatmaydistort competition;
ThatDecision 258establishes thattheCommission, uponaproposal bytheBoard, shallrevise
therules ontrade competition;
ThatDecision 281establishes that,atthelatest on31March 1991, theCommission, upon
aproposal bytheBoard, shallrevise therules ontrade competition laiddown inDecision 230;
Thatinordertoachievetheobjectivesoftheintegrationprocesswithinaframeworkcharacterized
byopenness,itisnecessarytoenhancesubregionalrulesoncompetition,takingadvantageofinternational
experience, sothattheyconstitute effective mechanisms toprevent orredress distortions caused by
dumping orsubsidies;
Thatbecause oftheirorigin andscope, itisnecessary todistinguish between dumping and
subsidies, which arethesubject ofthisDecision, andpractices which restrict freetrade, aswellas
export restrictions;
Thattheregulations onsubsidies inthisDecision shallbeapplicable while commitments on
theharmonization offoreign tradepromotion instruments areundertaken oriftheincentives framework
ofsuchharmonization cause distortions incompetition incertain special cases.
DECIDES:
I.SCOPE OFAPPLICATION
ARTICLE 1:Theobjective oftherules inthisDecision istoprevent orredress distortions
incompetition caused bydumping orsubsidies.
ARTICLE 2:Member States orenterprises which havealegitimate interest mayrequest the
Board toauthorize theapplication ofmeasures toprevent orredress distortions incompetition inthe
subregional market caused bydumping orsubsidies inthefollowing cases:
(a) Where practices originating intheterritory ofanother Member Statethreaten tocause
orcause material injury todomestic production forthedomestic market ofthecountry
concerned;
(b) Where practices originating inaMember Statethreaten tocause orcause material injury
todomestic production forexport toanother Member State;
(c) Where practices originating inacountry outside thesubregion threaten tocause or
cause material injury todomestic production forexport toanother Member State; and
(d) Where practices originating inacountry outside thesubregion threaten tocause or
cause material injury toitsdomestic industry; thisapplies toproducts subject tothe
Common External Tariff; andthecorrective measures mustbeapplied inmore than
oneMember State. Inother cases, thedomestic regulations ofeachMember State
mayapply.G/ADP/N/1/VEN/1
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Forthepurposes ofthisDecision, threat ofinjury shallinclude material retardation inthe
establishment ofadomestic industry.
II.DUMPING
ARTICLE 3:Animport isdumped when theexport price islessthanthenormal value for
thelikeproduct when destined forconsumption oruseinthecountry oforigin orofexport inthe
ordinary course oftrade.
ARTICLE 4:Alikeproduct isaproduct which isalikeinallrespects totheproduct subject
tothepractice orintheabsence ofsuchaproduct another product which hasverysimilar characteristics,
taking intoconsideration elements suchasitsnature, quality, useandfunction.
ARTICLE 5:Theexport price istheprice actually paidorpayable fortheproduct soldfor
export toaMember State.
Incases where there isnoexport price orwhere itappears totheBoard thattheprice is
unreliable because ofassociation oracompensatory arrangement between theexporter andtheimporter
orathirdparty, theexport price maybeconstructed onthebasis oftheprice atwhich theimported
products arefirstresold toanindependent buyer. Iftheproducts arenotresold toanindependent
buyer, ornotresold inthecondition asimported, theprice maybeconstructed onsuchreasonable
basis astheBoard maydetermine.
Incalculating theexport price, thenecessary adjustment shallbemade toallow forallcosts
incurred priortoresale, including allduties andtaxesandareasonable margin ofprofit. Theadjustments
shallalsotakeintoaccount interaliathecosts oftransport, insurance, maintenance andunloading;
import duties andother taxes payable afterexport from thecountry oforigin; areasonable margin
ofgeneral, administrative andselling costs; areasonable margin ofprofit andanycommission usually
paid.
ARTICLE 6:Forthepurposes ofthisDecision, normal value means theamount actually paid
orpayable foralikeproduct bycomparison withtheproduct imported intotheMember State, when
soldforconsumption oruseinthedomestic market ofthecountry oforigin orofexport, intheordinary
course oftrade.
Theordinary course oftradeshallmean transactions between associated parties orparties who
arebound byacompensatory arrangement, provided thattheprices andcostsarecomparable tothose
intrade between independent parties.
Where there arenosalesofthelikeproduct intheordinary course oftrade inthedomestic
market ofthecountry oforigin orofexport orwhere suchsalesdonotpermit areliable determination
ofthenormal value, itshallbedetermined:
(a) Byconsidering thehighest export priceforthelikeproduct exported toathirdcountry,
provided itisrepresentative;
(b) Intheabsence ofsuchaprice, byconsidering theconstructed priceofthelikeproduct.
Thisshallbebased onthecostofproduction intheordinary course oftrade inthe
country oforigin, plusareasonable amount foradministrative andselling costs and
profit. Asageneral rule,theaddition forprofit shallnotexceed theprofit normallyG/ADP/N/1/VEN/1
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realized onsalesofproducts ofthesamecategory inthedomestic market ofthecountry
oforigin;
(c) Where there isnoexport price toathird country thatisrepresentative ortheprice
ofalikeproduct cannot beconstructed, thenormal value maybecalculated ona
reasonable basis tobedetermined bytheBoard;
(d) Inthecaseofimports coming fromandoriginating incountries withcentrally planned
economies, thenormal value shallbedetermined onthebasisofthecomparable price
intheordinary course oftrade atwhich thelikeproduct issoldinathirdcountry with
amarket economy andasimilar levelofdevelopment fordomestic useorconsumption.
Where there isnocomparable price, thenormal value maybeconstructed ona
reasonable basis tobedetermined bytheBoard.
Incases where products arenotimported directly fromthecountry oforigin butfromathird
country, theprice atwhich theproducts aresoldfromthecountry ofexport toaMember Stateshall
normally becompared withthecomparable priceinthecountry ofexport. However, comparison may
bemade withtheprice inthecountry oforigin if,forexample, theproducts aremerely transshipped
through thecountry ofexport, orsuchproducts arenotproduced inthecountry ofexport orthere
isnocomparable price forthem inthecountry ofexport.
ARTICLE 7:Themargin ofdumping istheamount bywhich theexport price islessthan
thenormal price. Thismargin shallbecalculated perunitofproduct imported atthedumping price.
Theexport price andthenormal value shallbeexamined onacomparable basis inrespect of
thephysical characteristics oftheproduct, thequantities andconditions ofsale,taking intoaccount
differences intaxes andother criteria thatmight affect price comparison. Thecomparison shallbe
made atthesame stage ofthetransaction, usually attheex-factory level, andinrespect ofsalesmade
atasnearly aspossible thesame time.
III.SUBSIDIES
ARTICLE 8:Animport hasbeensubsidized when theproduction, manufacture, transport
orexport oftheimported goodorofitsrawmaterials orinputs hasreceived directly orindirectly any
bounty, aid,premium orsubsidy inthecountry oforigin orofexport. Inthecaseoftransport, the
geographic situation ofBolivia asaland-locked country shallbetaken intoaccount.
Theexistence ofmultiple currency practices relating totrade andfinancial transactions inthe
country oforigin orofexport maygiverisetoasubsidy andtherefore beconsidered assuchforthe
purposes ofthisDecision.
ARTICLE 9:Theamount ofthesubsidy shallbecalculated inmonetary unitsoradvalorem
perunitofthesubsidized product imported.
Theamount shallbeestablished bydeducting, interalia,anyexpenditure thathashadtobe
incurred inorder tobenefit from thesubsidy andanytaxes orother levies towhich theexport has
beensubjected.
Inthecaseofmultiple currency practices, theamount ofthesubsidy shallbedetermined on
thebasisoftherulesestablished within theframework ofharmonization ofexchange policies. IntheG/ADP/N/1/VEN/1
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absence ofsuchharmonization, theBoard shallprovide atechnical estimation oftheamount ofthe
subsidy.
Indetermining thesubsidy, likeproduct shallmean aproduct which isalike inallrespects
totheproduct subject tothepractice orintheabsence ofsuchaproduct, another product which has
verysimilar characteristics, taking intoconsideration elements suchasitsnature, quality, useand
function.
IV.PROCEDURE
ARTICLE 10:Thefollowing shallbeentitled tosubmit anapplication:
(a) Member States through theirrespective liaison bodies; and
(b) Theenterprise orenterprises which havealegitimate interest totheextent allowed
bynational legislation.
Theapplication shallcontain thefollowing information:
- Thenature ofthepractice anditsduration;
- thecharacteristics oftheproducts subject tothepractice;
- theenterprises involved;
- theevidence giving risetothepresumption oftheexistence ofathreat ofinjury or
injury todomestic industry orexports, caused byimports ofproducts subject tothe
practice which arealiketothose produced orexported andhavebeenimported within
theprevious 12months orareintheprocess ofbeing imported;
- thelevels oftheduties requested.
When theBoard hasreceived theapplication, itshalltransmit ittotheliaison bodies where
theenterprises involved intheinvestigation carry outtheireconomic activity.
ARTICLE 11:TheBoard shallnotinitiate aninvestigation iftheapplication isincomplete.
Insuchcases, itshallnotify theapplicant, specifying theinformation thatislacking, within 20working
daysfollowing thesubmission oftheapplication.
IftheBoard considers thattheapplication iscomplete, within 20working daysfromthedate
ofitssubmission, itshalldecide onthecaseinareasoned resolution. Theresolution shallalsobe
communicated tothecomplainant enterprise orenterprises.
ARTICLE 12:During theinvestigation, theBoard mayrequest andcollect evidence and
information fromtheliaison bodies and,either through them ordirectly, fromproducers, exporters,
importer orconsumers withalegitimate interest intheinvestigation. Thelatter mayalsoprovide
information or,asappropriate, present theirarguments totheBoard.
Where theBoard requests, collects orreceives evidence andinformation directly, itshall
communicate ittotherespective liaison bodies.G/ADP/N/1/VEN/1
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TheBoard mayalsorequest andcollect evidence andinformation fromexporters andauthorities
ofcountries outside thesubregion whose products arebeing investigated. Suchexporters orauthorities
mayprovide information or,where appropriate, present theirarguments totheBoard.
Investigations carried outinapplication ofthisDecision shallunder nocircumstances hinder
thecustoms clearance oftherespective products.
ARTICLE 13:TheBoard may, pursuant toitsauthority torequest andcollect evidence, treat
theinformation received asconfidential iftheapplicant requests andjustifies suchtreatment, because
theapplicant isthesource oftheinformation andthedisclosure ofthatinformation mayhaveadverse
effects forhim.
Sections ofinternal documents prepared bytheBoard orMember States which contain
confidential information mayalsobetreated asconfidential.
Where anapplicant wishes evidence tobetreated asconfidential, heshallprovide asummary
oftheinformation likely tobedisclosed oranexplanation giving thereasons whyitisnotsusceptible
ofsummary. Inthelatter case, theBoard mayreject theexplanation anddisregard theevidence.
Likewise, evenifthere aregrounds fortherequest, theinformation maynotbedisregarded
iftheperson submitting itdoesnotprovide anon-confidential summary thereof, provided thatitis
susceptible ofsummary.
Theparties interested intheinvestigation mayrequest inwriting theinformation provided or
prepared inapplication ofthisDecision, anditmaybecommunicated provided itisnotofaconfidential
nature.
ThisArticleshallnotpreventthedisclosureofgeneralinformationand,inparticular,thegrounds
onwhich theresolutions referred tointhisDecision arebased iftheyarerequired forthepurposes
oflegalproceedings. Suchdisclosure shallensure thattradesecrets ofpersons withalegitimate interest
intheinvestigation arenotrevealed.
ARTICLE 14:During theinvestigation, theBoard mayconvene meetings exofficio oratthe
request ofoneoftheinterested parties withaviewtoreaching adirect solution, theundertakings and
outcome ofwhich shallbecontained inanAct.
Nointerested party shallbeobliged toattend suchameeting andtheirabsence shallnotbe
detrimental totheircase.
TheBoard shalldecide onthecaseinareasoned resolution indicating theundertakings entered
intoandwhether itisdecided tosuspend theinvestigation ortocontinue itattherequest oftheperson
thatisthesubject ofthecomplaint.
Theexporters ortheauthorities inthecountry oforigin ofthepractice shall provide the
information required toverify compliance withtheundertakings entered into. Ifthese undertakings
arenotfulfilled ortherelevant information isnotprovided, theBoard shallresume theinvestigation
andimmediately establish anti-dumping orcountervailing duties atthelevels determined onthebasis
oftheinformation available, orinitsabsence, atthelevels requested bytheenterprises concerned.
Initsdefinitive decision, theBoard shalldetermine thecontinuation, modification orelimination of
theduties concerned.G/ADP/N/1/VEN/1
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ARTICLE 15:TheBoard shallhaveaperiod offourmonths, from thedateofpublication
oftheResolution referred toinArticle 11ofthisDecision, tocarry outtheinvestigation.
Inspecial cases, thisperiod maybeextended byuptotwomonths, andtheBoard shallso
notify theapplicant.
ARTICLE 16:Intaking itsdecision, theBoard shalltakeintoaccount theexistence ofpositive
evidence regarding:
(a) Thedumping orsubsidization practices which distort competition;
(b) Thethreat ofinjury ortheinjury caused bysuchpractices inaccordance withArticle 2
ofthisDecision; and
(c) Thecausal relationship between thepractices andthethreat ofinjury ortheinjury.
ARTICLE 17:Adetermination ofthethreat ofinjury orinjury andthecausal relationship
withthepractices maybebased, interalia,onexamination ofthefollowing:
(a) Thevolume ofimports subject tosuchpractices, inparticular todetermine whether
there hasbeenasignificant increase inabsolute terms orrelative toproduction and
consumption intheMember Stateconcerned orrelative toimports fromthecomplainant
Member State;
(b) Prices ofimports subject tosuchpractices, inparticular todetermine whether they
aresignificantly lower thanprices forlikeproducts intheabsence ofsuchpractices.
Itshallalsobedetermined whether theeffect ofsuchimports istodepress prices to
asignificant degree orlikewise prevent price increases which otherwise would have
occurred; and
(c) Theeffects ontheindustry orexports oftheMember State estimated onthebasis of
actual orpotential trends intherelevant economic factors, forexample, production,
domestic sales, exports, market share, utilization ofinstalled capacity, employment,
inventories andprofits.
ARTICLE 18:Attheconclusion oftheinvestigation theBoard shallissue, within aperiod
of20working daysfromthedateprovided inArticle 15,areasoned Resolution regarding itsfindings
onthebasis oftheinformation available.
TheResolution shallindicate thelevels oftheduties established, theimports subject tothe
practices forwhich suchduties shallbeapplied, theperiod fortheiradoption andtheirduration. Where
appropriate, itshallalsoindicate thecriteria usedtodetermine theduration.
ARTICLE 19:When theBoard, attherequest oftheliaison bodies orinterested parties, has
verified thatthegrounds fortheResolution referred tointheprevious paragraph havechanged orceased
toexist, itshalldeclare theResolution partially ortotally without effect, amending orcancelling it.
TheBoard shallhaveaperiod ofthree months inwhich totakeitsdecision.
TheBoard mayalsoverify exofficio thatthegrounds fortheResolution havechanged orceased
toexistandamend orcancel it.G/ADP/N/1/VEN/1
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V.MEASURES
ARTICLE 20:Incases ofdumping, anti-dumping duties shallbeimposed onthedumped
imports inanamount equal tothemargin ofdumping determined orlessiftheamount isadequate
toremove thethreat ofinjury ortheinjury thathasbeenconfirmed.
ARTICLE21:Incasesofsubsidies,countervailingdutiesshallbeimposedonsubsidizedimports
inanamount equal totheamount ofthesubsidy orlower iftheamount issufficient toremove the
threat ofinjury ortheinjury thathasbeenconfirmed.
ARTICLE 22:Corrective measures toprevent orredress distortions caused bybothdumping
andsubsidies maynotbeapplied simultaneously tothesame imported product.
ARTICLE 23:Where thethreat ofinjury ortheinjury isevident, theMember State orthe
enterprises which have alegitimate interest mayrequest theBoard toauthorize theapplication of
immediate corrective measures.
Where theBoard considers thattherequest isadmissible, itmayauthorize ordetermine the
establishment ofprovisional measures, which maybeintheform ofanti-dumping orcountervailing
duties, orthedeposit ofsecurity -either incashorbonds -equal totheamount oftheduty, within
aperiod of20working daysfrom thedateoftherequest mentioned intheprevious paragraph.
Suspension ofcustoms valuation shallbeanadequate provisional measure provided thatthenormal
dutyandtheestimated amount oftheanti-dumping dutyareindicated.
During theinvestigation, theBoard maysuspend theapplication ofprovisional measures and
initsdefinitive decision shalldetermine thecontinuation, modification orelimination ofthemeasures
established.
Where thedefinitive duties arehigher thantheprovisional duties paidorguaranteed, theamount
inexcess shallnotbepayable. Inthecontrary case, thedifference shallberefunded orthereduced
amount ofthesecurity shallbecollected.
Where definitive duties arenotestablished, theentire amount paidbywayofprovisional duty
shallberefunded orthesecurity shallbereleased.
ARTICLE 24:TheBoard mayalsoapply definitive anti-dumping orcountervailing duties
onproducts marketed forconsumption within 90daysprior tothedateoftheestablishment ofthe
provisional duties.
Theaforementioned definitive duties maybeapplied inorder toprevent renewed occurrence
oftheinjury incases where theBoard determines theexistence ofaninjury which isdifficult torepair
caused bymassive dumped orsubsidized imports inashort period oftime. Inthecaseofdumping,
itmustalsobedetermined thatthereisahistory ofdumping which caused injury, orthattheimporter
was,orshould havebeen, aware thattheexporter practised dumping.
VI.FINAL PROVISION
ARTICLE 25:ThisDecision replaces Decision 230inrespect oftherulestoprevent orredress
distortions incompetition arising outofdumping orsubsidy practices.
Done inthecityofLima onthetwenty-first dayofthemonth ofMarch ofonethousand nine
hundred andninety-one.