RESTRICTED
WORLD TRADE G/SG/N/1/BRA/3
26March 1996
ORGANIZATION(96-1082)
Original: English Committee onSafeguards
NOTIFICATIONS OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
BRAZIL
Thefollowing communication wasreceived on20March 1996 from thePermanent Mission
ofBrazil.
_______________
WithreferencetoArticle12.6oftheAgreementonSafeguards,andinadditiontotheinformation
contained indocument G/SG/N/1/BRA/2, please findattached herewith acopy ofDecree 1488 of
11May1995. Asstated indocument G/SG/N/1/BRA/2, Decree 1488, establishes administrative
procedures fortheapplication ofsafeguard measures inBrazil.G/SG/N/1/BRA/3
Page2
DECREE NO. 1488/95, 11May1995
Regulates theNorms which Govern Administrative
Procedures regarding theApplication ofSafeguard Measures
ThePresident oftheRepublic, byvirtue ofthepowers vested inhimbyArticle 84,Sections IV
andVI,oftheConstitution andtaking intoconsideration theprovisions oftheAgreement onSafeguards,
approved byLegislative Decree No. 30,dated 15December 1994, andpromulgated by
Decree No.1.355, dated 30December 1944, andtheGeneral Agreement onTariffs andTrade -GATT,
adopted byLawNo.313,dated 30July1948, decrees:
CHAPTER I
Conditions forApplication
Article 1
Safeguard measures maybeapplied toaproduct ifaninvestigation shows, inaccordance with
theprovisions ofthisRegulation, thatsuchproduct isbeing imported insuchincreased quantities,
absolute orrelative tonational production, andunder suchconditions astocause orthreaten tocause
serious injury tothedomestic industry thatproduces likeordirectly competitive goods.
Article 2
Itisthecompetence oftheMinister ofIndustry, Commerce andTourism andoftheMinister
ofFinance toapply, byjointaction, thesafeguard measures thataregoverned bythisRegulation.
2.1 Theapplication ofsafeguard measures willbepreceded byaninvestigation conducted bythe
Foreign Trade Secretariat -SECEX, oftheMinistry ofIndustry, Commerce andTourism.
2.2 Decisions regarding theapplication, suspension ormodification ofthetime periods for
application ofthesafeguard measures willbemade based onthereport bySECEX, afterhaving
heard theMinistry ofExternal Relations and,whenever thecase, theMinistries whose area
ofcompetence thedecisions regard, which must bepublished intheOfficial Diary.
Article 3
Therequest fortheapplication ofasafeguard measure maybepresented by:
(i) SECEX;
(ii) other interested organs andagencies oftheFederal Government;
(iii) companies orassociations which arerepresentative ofcompanies thatproduce the
product which istheobject oftherequest.
3.1 Requests fortheapplication ofsafeguard measures mustbesubmitted inwriting, inaccordance
withaformprepared bySECEX, andcontain sufficient elements ofevidence which demonstrate
theincrease inimports, theserious injury orthethreat ofserious injury thattheyhavecaused
andthecausal linkbetween bothcircumstances.G/SG/N/1/BRA/3
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3.2 Thedecision regarding theinitiation oftheinvestigation, which willdeliberate ontheapplication
ofsafeguard measures, willbetheobject ofaSECEX circular letter, published intheOfficial
Diary,itbeingthetaskoftheMinistryofExternalRelationstotransmitthepertinentinformation
totheCommittee onSafeguards oftheWorld Trade Organization -WTO.
3.3 Interested parties willbeheard atahearing within 30days, where theywillhavetheopportunity
topresent elements ofevidence andtheirviews ontheallegations made bytheother interested
parties. Requests forhearings aretobesubmitted inwriting toSECEX.
3.4 Adequate opportunity willbegranted forprior consultation withanyGovernment thathasa
substantial interest asanexporting country oftheproduct inquestion, withaviewtoexamine
theinformation supplied bythepetitioner, toexchange opinions onthemeasure andtoseek
anunderstanding onwaystoachieve theobjective ofmaintaining theequivalent levelofrights
andobligations under theterms ofGATT 1994.
3.5 Thedetermination oftheauthorities which arecitedintheopening paragraph ofArticle 2will
bethesubject ofaninterministerial directive, which willcontain thedecisions offactandof
law,withadetailed analysis ofthecaseandademonstration oftherelevance ofthefactors
thathavebeenexamined.
3.6 Allconfidential information submitted bytheinvolved parties inasafeguard investigation shall,
bymeans ofprior justification, beclassified assuchbySECEX andshallnotbemade public
without theexpress permission oftheparty which submitted it.
3.7 SECEX mayinvite theparties thathavesubmitted confidential information topresent anon-
confidential summary ofthesame, andshould itbeindicated thattheinformation cannot be
summarized, thereasons forthisimpossibility should beprovided..
3.8 Should SECEX decide thatarequest forconfidentiality isnotwarranted, andiftheparty that
submitted theinformation isunwilling tomake itpublic, norauthorizes itspublic disclosure
inwhole orinpart,SECEX reserves therightnottotakeitintoconsideration, unless ithas
beendemonstratedtoitssatisfactionandfromappropriatesourcesthattheinformationiscorrect.
CHAPTER II
Provisional Safeguard Measures
Article 4
Aprovisional safeguard measure maybeapplied under critical circumstances incases where
delay could cause damage which would bedifficult torepair, pursuant toapreliminary determination
thatthereisclearevidence thatincreased imports havecaused orarethreatening tocause serious injury
todomestic industry. Consultations withanyGovernment involved mustbeinitiated immediately after
suchapplication.
4.1 Theprovisional safeguard measure willhaveamaximum duration of200days, andmaybe
suspended byinterministerial decision prior tothefinaldateestablished.
4.2 When theadoption ofadefinitive safeguard measure isdecided upon, theperiod ofits
provisional application willbecounted aspartofthetotaltimeoftheduration ofthemeasure.G/SG/N/1/BRA/3
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4.3 Provisional safeguard measures willbecharged independently ofanyobligation offiscal nature,
through theapplication ofanadvalorem duty, ofaspecific dutyorbyacombination ofboth
andcollected ascompensatory receipts, inaccordance withtheprovision ofArticle 3,sole
paragraph, ofLawNo.4.320, dated 17March 1964.
4.4 Theamount corresponding totheprovisional safeguard measure maybecollected orremain
ondeposit asaguarantee. Theeventual compensation willbemade incash, preserving the
realvalue ofthedeposits made.
4.5 Immediate refund willalways bemade iftheinvestigation determines thatadefinitive safeguard
measure willnotbeapplied.
CHAPTER III
Non-Selectivity
Article 5
Provisional safeguard measures willbeapplied totheimported product independently ofits
sources, except incases provided forinthetransitory provisions applicable totextile products
(Chapter XI).
CHAPTER IV
Serious Injury andThreat ofSerious Injury
Article 6
Forthepurposes ofthepresent Regulation, itisunderstood as:
(i) "serious injury": thesignificant overall impairment intheposition ofadomestic
industry;
(ii) "threat ofserious injury": theserious injury thatisclearly imminent, based onfacts
andnotmerely onallegation, conjecture orremote possibility;
(iii) "domestic industry": theproducers asawhole ofthelikeordirectly competitive
products, operating intheBrazilian territory, orthose whose collective output ofthe
likeordirectly competitive products constitutes amajor proportion ofthetotalnational
production ofsuchproducts.
CHAPTER V
TheInvestigation
Article 7
Theinvestigation todetermine serious injury orthreat thereof asaresult ofincreased imports
ofacertain product shalltakeintoconsideration allrelevant factors ofanobjective andquantifiableG/SG/N/1/BRA/3
Page5
nature having abearing onthesituation ofthedomestic industry being affected, particularly the
following:
(i) theamount andrateoftheincrease inimports oftheproduct concerned inabsolute
andrelative terms;
(ii) theshare ofthedomestic market taken byincreased imports;
(iii) thepriceoftheimports, especially inorder todetermine iftherehasbeenasignificant
underpricing inrelation totheprice ofthesimilar domestic product;
(iv) theconsequent impact onthedomestic industry ofthelikeordirectly competitive
products, evidenced bychanges ineconomic factors suchas:production, capacity
utilization, stock, sales, market share, prices (decrease inprices orlackofincrease
inprices, which could haveoccurred intheabsence ofimports), profits andlosses,
return oninvested capital, cashflowandemployment;
(v) other factors that,although notrelated totheevolution ofimports, have acausal
relationship withtheinjury orthethreat ofinjury tothedomestic industry inquestion.
7.1 Determination ofserious injury orthethreat ofserious injury shall bebased onobjective
evidence, thatdemonstrates theexistence ofacausal linkbetween theincreased imports of
theproduct concerned andthealleged serious injury orthreat ofserious injury.
7.2 When factors other thanincreased imports arecausing threat ofinjury orserious injury tothe
domestic industry inquestion atthesame time, suchserious injury shallnotbeattributed to
increased imports.
7.3 When there isanalleged threat ofserious injury, SECEX shallexamine whether itisclearly
predictable thatthecasemaybecome oneofserious injury, taking intoaccount factors such
asthegrowth rateofexports toBrazil andtheexport capacity ofthecountry ofproduction
oroforigin, either existent orpotential, andtheprobability thattheresulting exports ofthat
capacity willbedestined totheBrazilian market.
CHAPTER VI
TheApplication ofDefinitive Safeguard Measures
Article 8
Safeguard measures willbeapplied onlytotheextent necessary toprevent thethreat ofinjury
ortoremedy theserious injury andfacilitate adjustment. Such measures maybeadopted under the
form of:
(i) advalorem duties, application ofaspecific duty, oracombination ofboth;
(ii) quantitative restrictions.
8.1 Incasesofquantitative restrictions, suchmeasures shallnotreduce thevolume ofimports below
thelevel ofarecent period, which shall betheaverage oftheimports ofthelastthree
representative years forwhich statistical dataisavailable, unless clear justification isgivenG/SG/N/1/BRA/3
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thatadifferent levelisnecessary toprevent thethreat ofserious injury ortoremedy theserious
injury.
8.2 Incases where quotas areused, theBrazilian Government mayseekagreements withthe
Governments ofthecountries directly interested insupplying theproduct, regarding quota
distribution among them.
8.3 Should anagreement notbefeasible, aquota shall beallocated foreachcountry having a
substantial interest, based ontherelative share ofeachcountry, interms ofthevalue orthe
quantity oftheimports oftheproduct, taking intoconsideration arepresentative prior period
anddueaccount being taken ofanyspecial factors which maybeaffecting tradeofthisproduct.
8.4 Other criteria maybeadopted fortheallocation ofquotas, through consultation withthe
Governments oftheinterested countries, made under theauspices oftheCommittee on
Safeguards oftheWTO, iftheCommittee findsthatcleardemonstrations isprovided thatthe
imports fromcertain countries haveincreased ingreater proportion thanthetotalincrease of
imports oftheproduct concerned, intherepresentative period oftime, andthattheconditions
forapplication ofthesecriteria areequitable toallsuppliers oftheproduct concerned. Measures
ofthisnature maybeapplied onlyincases ofdetermination ofserious injury andwillhave
amaximum duration limited tothefour-year period established inparagraph 1ofArticle 9.
CHAPTER VII
Duration
Article 9
Safeguard measures shallbeapplied onlyduring theperiod necessary toprevent ortoremedy
theserious injury andtofacilitate adjustment.
9.1 Safeguard measures shallnotbeapplied foraperiod exceeding fouryears, unless anextension
interms ofparagraph 2occurs.
9.2 Theperiod forapplication ofthesafeguard measures maybeextended iftheauthorities referred
tointheopening paragraph ofArticle 2decide, inaccordance withtheprovisions ofthis
Regulation, andbased onadetermination bySECEX, thatsuchapplication continues tobe
necessary toprevent orremedy theserious injury, andthatthere isevidence thattheindustry
isundergoing adjustment, intheterms ofthecommitment signed withtheGovernment, with
dueobservance oftheprovisions oftheWTO regarding consultations andnotifications.
9.3 Thetotalduration ofthesafeguard measure, including theinitial application period andthe
entire extent ofthesame, shallnotexceed tenyears, asprovided forinparagraph 2ofArticle 9
oftheAgreement onSafeguards.
9.4 Safeguard measures which application period isoveroneyearshallbeprogressively liberalized,
atregular intervals during theperiod ofapplication.
9.5 Iftheduration ofthesafeguard measure exceeds threeyears, SECEX, atthelatest bymid-term
oftheapplication period, shall examine theconcrete effects which haveresulted from the
safeguard measure and,ifappropriate, shallprepare ademonstrative finding proposing totheG/SG/N/1/BRA/3
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authorities referred tointheopening paragraph ofArticle 2therevocation ofthemeasure or
theacceleration oftheliberalization process.
9.6 Measures extended shallnotbemore restrictive thanthose which were ineffect attheend
oftheinitial period andshallcontinue tobeliberalized.
9.7 Inexceptional cases, tobedetermined bytheauthorities referred tointheopening paragraph
ofArticle 2,based onafinding bySECEX, theliberalization process maybeinitiated after
thesecond year.
9.8 Nosafeguard measure shallbeapplied again tothesame product, before theatleast2years
haveelapsed from theendoftheduration ofaprevious safeguard measure.
9.9 Ifthesafeguard measure hasbeenapplied foraperiod ofmore than4years, theprohibition
referred tointhepreceding paragraph isapplied tohalfoftheperiod ofitsduration.
9.10 Notwithstanding theprovisions ofthepreceding paragraphs, safeguard measures mayagain
beapplied toimports ofthesame product foramaximum period of180days, if:
(a) atleast1yearhaselapsed since thedateofapplication ofthesafeguard measure on
theimport ofthatproduct;
(b) suchameasure hasnotbeenapplied onthesame product more thantwice within the
5years immediately preceding thedateofintroduction ofthesafeguard measure.
CHAPTER VIII
Monitoring andSuspension oftheMeasure
Article 10
SECEX willmonitor thesituation oftheinjured industry during theperiod ofapplication of
thesafeguard measure, anditmaypropose totheauthorities referred tointheopening paragraph of
Article 2,based onafounded determination, thesuspension ofthemeasure aslongasitisestablished
thattheefforts tobring about thedesired adjustment andchanges inthecircumstances which originally
gaverisetotheapplication ofthemeasure areinsufficient orinadequate.
CHAPTER IX
Level ofConcessions andother Obligations under GATT 1994
Article 11
When applying safeguard measures orextending theperiod oftheirduration, theBrazilian
Government shallendeavour tomaintain theequilibrium ofitstariffconcessions andother obligations
under GATT 1994.
11.1 Forthepurposes ofthisarticle, agreements maybemade regarding anyadequate means of
trade compensation fortheadverse effects ofthesafeguard measure ontrade.G/SG/N/1/BRA/3
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11.2 Intaking thedecision tointroduce asafeguard measure, theBrazilian Government shallalso
considerthefactthat,incasesinwhichthereisnoagreementconcerningadequatecompensation,
theinterested Governments may, under theterms oftheAgreement onSafeguards, suspend
substantially equivalent concessions under GATT 1994, aslongassuchsuspension isnot
disapproved bytheWTO Council forTrade inGoods.
11.3 Therighttosuspend equivalent concessions shallnotbeexercised during thefirst3years that
thesafeguard measure isineffect, provided thatithasbeenadopted astheresult ofanabsolute
increase inimports.
CHAPTER X
Differential Treatment forDeveloping Countries
Article 12
Safeguard measures shallnotbeapplied toaproduct originating inadeveloping country:
(i) when itsshare oftheimports oftheproduct concerned doesnotexceed 3percent;
and
(ii) when developing countries withindividual shares thatarelessthan3percentofthe
imports donotaccount, collectively, atotalofmore than9percentoftheimports
oftheproduct concerned.
CHAPTER XI
Transitory Provisions Relating toTextile Products
Article 13
During thetransition period forintegration ofthetextile andclothing sector established by
theAgreement onTextiles andClothing, "transitional safeguards" maybeapplied toproducts that
havenotbeenintegrated byBrazil intoGATT -1994 andforwhich theBrazilian Government has
retained therights tohaveusesuchmeasures.
13.1 Transitional safeguard maybetaken under thepresent provisions when, bydetermination of
theauthorities mentioned intheopening paragraph ofArticle 2,andbased onafinding by
SECEX,itisdemonstratedthataparticularproductisbeingimportedinsuchincreasedquantities
astocause serious damage, oractual threat thereof, tothedomestic industry producing like
and/or directly competitive products.
13.2 Itistheresponsibility ofSECEX todemonstrate thattheserious damage oractual threat thereof
arecaused bythesuchincrease inthetotalimports oftheproduct andnotbysuchother factors
astechnological changes orchanges inconsumer preference.
13.3 Inissuing itsfinding withadetermination ofserious damage ortheactual threat ofserious
damage, SECEX shallexamine theeffects ofthose imports ontheparticular domestic industry,
asreflected inchanges insuchrelevant economic variables suchasoutput, productivity,
utilization ofcapacity, inventories, market share, exports, wages, employment levels, domesticG/SG/N/1/BRA/3
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prices, profits andinvestments; noneofwhich, either alone orcombined withother factors
cannecessarily givedecisive guidance.
13.4 Anymeasure invoked pursuant totheprovisions ofthisarticle shallbeapplied onacountry
bycountry basis.
13.5 Thedetermination ofthecountry orcountries oforigin towhich theserious damage oractual
threat thereof areattributed shallbemade onthebasisofasharp andsubstantial increase, actual
orimminent, intheimports fromthese countries considered individually, andonthebasis of
thelevelofimports ascompared withimports fromother sources, market share, andimport
anddomestic prices atacomparable stage ofcommercial transaction; noneofthese factors,
either alone orcombined, cannecessarily givedecisive guidance.
13.6 Theimminent increase shallbemeasurable anditsoccurrence shallnotbedetermined toexist
onthebasisofallegation, conjecture ormerepossibility, resulting, among other factors, from
theexistence ofproduction capacity onthepartoftheexporting members.
13.7 Atransitional safeguard shallnotbeapplied toexports ofanycountry whose exports ofthe
particular product arealready subject torestraint under other provisions oftheAgreement on
Textiles andClothing.
13.8 Theperiod ofvalidity fortheentire determination oftheserious damage oroftheactual threat
ofserious damage forthepurposes ofinvoking safeguard measures shallnotexceed 90days
from thedateoftheinitial notification.
13.9 Intheapplication ofthetransitional safeguard, particular account shallbetaken oftheinterests
ofexporting countries inthefollowing terms:
(a) least-developed countries, Members oftheWTO, shall beaccorded treatment
significantly more favourable thanthatprovided toother groups ofMembers referred
tointhisparagraph, preferably inallitselements but,atleast, inoverall terms;
(b) when establishing theeconomic terms provided forinthisarticle, differential andmore
favourable treatment shallbeaccorded toWTO Members whose totalvolume ofexports
oftextiles andclothing issmall, incomparison withthetotalvolume ofexports of
other Members, andwhoaccount foronlyasmall percentage oftotalimports ofthat
product and,withrespect tosuchsuppliers, dueaccount willbetaken ofthefuture
possibilities forthedevelopment oftheir trade andtheneed toallow commercial
quantities ofimports from them;
(c) withrespect towoolproducts fromdeveloping countries whose economies andtextiles
andclothing trade consist almost exclusively ofthose products andwhose volume of
textile andclothing trade inthedomestic market iscomparatively small, special
consideration shallbegiven totheexport needs ofsuchcountries when considering
quotas levels, growth ratesandflexibility.
(d) more favourable treatment shall beaccorded tore-imports oftextile andclothing
products thathavebeenexported toanother country forprocessing andsubsequent
re-export toBrazil, andsubject tosatisfactory control andcertification procedures,
when these products havebeenre-imported byacountry forwhich thistypeoftrade
represents asignificant proportion ofitstotalexports oftextiles andclothing.G/SG/N/1/BRA/3
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13.10 When proposing theadoption ofatransitional safeguard, theMinistry ofExternal Relations
shallseekconsultation withtheGovernment ofthecountry orcountries which would beaffected
bysuchameasure.
13.11 Therequest forconsultation shallbeaccompanied byspecific andrelevant factual information,
asup-to-date aspossible, particularly inregard to:
(a) thefactors referred toinparagraph 3onwhich thedetermination ofserious injury or
theactual threat ofserious injury isbased;
(b) thefactors referred toinparagraph 5,onthebasisofwhich theBrazilian Government
proposes toinvoke themeasure withrespect tothecountry orcountries concerned.
13.12 Inrespect ofrequests forconsultation, theinformation shallberelated asclosely aspossible
totheidentifiable segments ofproduction andtothereference period setoutinparagraph 16.
13.13 TheBrazilian Government shallalsoindicate thespecific levelatwhich imports oftheproduct
inquestion fromthecountry orcountries concerned areproposed toberestrained; suchlevel
shallnotbelower tothatreferred toinparagraph 16.
13.14 Atthesame time, theMinistry ofExternal Relations shallcommunicate totheChairman of
theTextiles Monitoring Body -TMB therequest forconsultations, including alltherelevant
factual dataoutlined inparagraphs 3and5,together withtheproposed restraint level.
13.15 Thecountry orcountries concerned shallrespond totherequest promptly andconsultations
shallbeheldwithout delay andwillnormally beconcluded within aperiod of60daysfrom
thedateonwhich therequest wasreceived.
13.16 If,intheconsultations, there ismutual understanding thatthesituation callsforrestraint on
theexports oftheparticular product fromthecountry orcountries concerned, sucharestraint
shallbefixed atalevelnotlower thantheactual levelofexports orimports fromthecountry
concerned during the12-month period terminating 2months preceding tothemonth inwhich
therequest forconsultation wasmade.
13.17 Details oftheagreed restraint measure shallbecommunicated totheTMB within 60daysfrom
thedateoftheconclusion oftheagreement. TheTMB shalldetermine whether theagreement
isjustified inaccordance with provisions oftheAgreement onTextiles andClothing.
13.18 If,aftertheexpiry oftheperiod of60daysfromthedateonwhich therequest forconsultations
wasreceived, therehasbeennoagreement reached between thecountries involved, theBrazilian
Government mayapply therestraint bydateofimport ordateofexport, inaccordance with
theprovisions ofthisRegulation, within 30days following theperiod of60days for
consultations, andatthesame timereferthematter totheTMB.
13.19 Anyoftheinvolved countries, according totheprovisions ofAgreement onTextiles and
Clothing, mayrefer thematter totheTMB before theexpiry oftheperiod of60days. The
TMB shallmake recommendations tothecountries concerned within 30days.
13.20 Inhighly unusual andcritical circumstances, where delay would cause damage which would
bedifficult torepair, theaction provided forinparagraph 18maybetaken provisionally on
thecondition thattherequest forconsultations andthenotification totheTMB shallbeeffected
within nomore than5working daysaftertaking theaction.G/SG/N/1/BRA/3
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(a) ifnoagreement isreached during theconsultations, theTMB shallbenotified atthe
conclusion ofconsultations within amaximum period of60daysfromthedateofthe
implementation oftheaction.
(b) theTMB, inaccordance withtheprovisions oftheAgreement onTextiles andClothing,
shallpromptly conduct anexamination ofthematter andmake recommendations to
thecountries concerned within 30days.
(c) should anagreement bereached during theconsultations, theMinistry ofExternal
Relations shallnotify theTMB oftheconclusion oftheconsultations within aperiod
of90daysfrom thedateoftheapplication ofthemeasure.
13.21Themeasures invoked pursuant totheseprovisions mayremain ineffect foramaximum period
ofthreeyears without extension, oruntiltheproduct isintegrated intoGATT 1994, whichever
comes first.
13.22 Should therestraint measure remain inforce foraperiod ofmore than1year, therestraint
levelforthesubsequent years shallbethelevelspecified forthefirstyearincreased eachyear
byagrowth rateofnotlessthan6percent, unless some other coefficient isjustified before
theTMB.
13.23 Therestraint levelfortheproduct inquestion maybeexceeded inoneortheother ofanyof
the2subsequent years, bycarryforward of5percentorcarryover of10percent,orbyboth.
13.24 Noquantitative limits shallbeimposed onthecombined useofcarryover, carryforward and
theprovision inthefollowing paragraph.
13.25 When theBrazilian Government, based onthese provisions, places under restraint more than
oneproduct coming from another country, theagreed level ofrestraint, pursuant tothese
provisions, maybeexceeded by7percentforeachofthese products, provided thatthetotal
exports subject torestraint donotexceed thetotalofthelevels established forallofthe
restrained products, onthebasis ofagreed common units. When theperiods ofapplication
oftherestraints onthese products donotcoincide, thisprovision shall beapplied toany
overlapping period onaproratabasis.
13.26 When theauthorities mentioned intheopening paragraph ofArticle 2,based onafinding from
SECEX, decide toapply arestraint inaccordance withtheseprovisions toaproduct forwhich
these arenotapplied duetoArticle 2oftheAgreement onTextiles andClothing, appropriate
measures shallbeadopted that:
(a) takefullaccount offactors suchasestablished tariffclassification andquantitative units
based onnormal commercial practices inexport andimport operations, bothasregards
thecomposition offibres composition andinterms ofcompeting forthesamesegment
ofitsdomestic market;
(b) avoid over-categorization.
13.27 Forthepurposes ofthisRegulation, theterm"industry" alsoincludes theactivities related
toagriculture.
13.28 Theauthorities referred tointheopening paragraph ofArticle 2shall givethenecessary
instructions forthecompliance withtheprovisions ofthisDecree.G/SG/N/1/BRA/3
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13.29 These transitory provisions regarding textile products shallremain ineffect untilthefirstday
ofthe121st month thattheWTO Agreement isineffect, onwhich datethetextiles andclothing
sector shallbefullyintegrated intoGATT 1994.
Article 14
ThisDecree takes effect onthedateofitspublication.
Brazil, 11May1995; 174th yearofIndependence and107th yearoftheRepublic.
FERNANDO HENRIQUE CARDOSO
LuizFelipe Lampreia
Pedro Maian
JoséEduardo deAndrode Vieira
Dorothea Werneck
JoséSerra