RESTRICTED
WORLD TRADE G/SG/W/33
18October 1995
ORGANIZATION(95-3144)
Original: Spanish Committee onSafeguards
REPLIES FROM COLOMBIA CONCERNING QUESTIONS POSED
BYAUSTRALIA1,CANADA2,EC3,JAPAN4AND KOREA5
CONCERNING THE NOTIFICATION OFCOLOMBIAN
LAWS AND REGULATIONS6
Thefollowing communication, dated 14September 1995, hasbeenreceived fromthePermanent
Mission ofColombia.
_______________
General remarks
Thisreport contains thereplies fromColombia tothequestions posed concerning itslegislation
onsafeguard measures applicable toWTO Member countries.
When notifying itslegislation onsafeguards, Colombia notified Decree 809of1994, which
contains thespecific provisions inthisregard. Asismade clear inthisreport, theapplication of
safeguard measures involves provisions relating toother areas, inparticular administrative law,which
arenotified asasupplement toDecree 809.Thesupplementary provisions comprise those ofLaw170
of1994 (Law ratifying theWTO Agreements), theAdministrative Litigation Code (Articles 5to36,
69to74and84)andtheCivil Procedure Code (Articles 109and110).
Theauthorityresponsibleforcarryingoutadministrativeinvestigationstodeterminetheexistence
ofserious injury orthreat ofserious injury tothedomestic industry caused byimports istheColombian
Foreign Trade Institute (INCOMEX). Thisisapublic bodyattached totheMinistry ofForeign Trade,
which, aftertheinvestigation hasbeencompleted, transmits itsconclusions andrecommendations to
theCustoms, Tariffs andForeign Trade Committee. ThisCommittee studies thereport submitted by
INCOMEX andmakes itsrecommendation onthematter totheHigher Council forForeign Trade,
which evaluates itandsubmits itsopinion totheGovernment fortheadoption ofanymeasure.
1G/SG/W/7.
2G/SG/W/4.
3G/SG/W/16.
4G/SG/W/14.
5G/SG/W/11.
6G/SG/N/1/COL/1.G/SG/W/33
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1. Questions relating toArticle 1ofDecree 809of1994.
- Question No.1ofAustralia:
What is"thegeneral system regulating theapplication ofsafeguard measures" referred
toinArticle 1?Isthisareference toother domestic legislation orisitareference tothe
WTO Safeguards Agreement?
"General system" refers tothegeneral regime ofsafeguard measures inColombia applicable
toWTO Member countries, asopposed tothespecial regime provided forintwosubregional economic
integration agreements (Cartagena Agreement andFree-Trade Agreement between theUnited Mexican
States, theRepublic ofColombia andtheRepublic ofVenezuela) andtheregime applicable tonon-WTO
Member countries.
Law170of1994 tacitly repealed anumber ofthearticles ofDecree 809of1994, aswillbe
seenbelow. Consequently, fortheapplication ofsafeguards toWTO Member countries, Colombia
applies Law170andDecree 809insofarasitdoesnotconflict withthatlaw.
- Question No.2from Australia:
With regard tothedefinition of"serious injury" inArticle 1,what difference, ifany,is
there between "significant material impairment" andtheterm "significant overall impairment"
usedinArticle 4oftheSafeguards Agreement?
Theconcept of"serious injury" or"significant material impairment" isthesameastheconcept
"significant overall impairment" or"serious injury".
2. Questions concerning Article 3ofDecree 809.
- Question No.3from Australia:
What would constitute a"considerable proportion ofthedomestic industry"?
IntheinvestigationscarriedoutbyINCOMEXsofar,"aconsiderableproportionofthedomestic
industry" hasbeenunderstood tomean 50percentofthedomestic industry concerned. However,
thispercentage canvarydepending onthelevel ofrepresentativeness warranted bythedegree of
concentration ofthedomestic industry.
3. Questions concerning theprocedure forreceipt ofinformation from interested parties
(Articles 10and11ofDecree 809).
- Question No.5from Australia:
Howdotheshort timeperiods of20daysand60daysinArticles 10and11,respectively,
allow forthefulfilment oftherequirements ofArticle 3.1oftheSafeguards Agreement regarding
"reasonable public notice" and"theopportunity torespond"? Willthisallow interested parties
tosubmit views onwhether theaction would beinthepublic interest? Willinterested parties
beabletopresent their views onpublic interest under Article 25?
Aperiod of20daysto60daysisnotshort ifitisborne inmind that"days" means working
daysandnotcalendar days, inaccordance withArticle 62ofthePolitical andMunicipal Regime Code.
Furthermore, theperiods established inDecree 809of1994 haveenabled INCOMEX tocarry outG/SG/W/33
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investigations allowing anyinterested person, whether ornotaparty, theopportunity tosubmit evidence
andexpress theiropinions. Forthispurpose theInstitute issues apublic convocation through thenational
pressandsends questionnaires toproducers, exporters andimporters oftheproduct under investigation.
After theinvestigation hasbeenconcluded andbefore thedecision onwhether ornottoimpose
ameasure hasbeen adopted, those interested may address theCustoms, Tariffs andForeign
Trade Committee andtheForeign Trade Council topresent theirviews onpublic interest.
Theentire safeguards investigation procedure takes account ofthepublic interest.
- Question AfortheEuropean Union:
Could Colombia indicate who, under theterms ofitslegislation, areconsidered tobe
interested parties?
Interested parties means "theapplicant, exporters, foreign producers, importers oftheproduct
under investigation, tradeorbusiness associations amajority ofwhose members areimporters, exporters
orproducers ofthatproduct, governments ofexporting countries, producers oftheproducts under
investigationinColombiaortrade,orbusinessassociationsthemajorityofwhosemembersareproducers
oftheproduct under investigation inColombia".
- Istheinformationsuppliedandgatheredinconnectionwithaninvestigationavailable
totheinterested parties andtherepresentatives ofexporting countries? Ifso,what procedures
must theyfollow inorder toobtain access tosuchinformation andexpress their views onit?
Theinformation supplied andgathered inconnection withaninvestigation isplaced inadossier
comprising aconfidential fileandapublic file.Thelatter maybeconsulted atanytimebyanyperson
aftertheopening oftheinvestigation. Copies ofthepublic filemaybeobtained byaddressing awritten
request toINCOMEX.
- Question No.4from Canada (concerning Article 10ofDecree 809):
Does thisArticle contemplate theprovision ofapublic hearing?
Theholding ofhearings isnotexplicitly provided for,butINCOMEX mayholdthem atthe
request ofaninterested party orexofficio inaccordance withArticles 109and110oftheColombian
Code ofCivil Procedure.
- Question 1(Article 3)from Canada :
Areprivate sector interests represented inINCOMEX?
INCOMEXisapublicbodyattachedtotheColombianMinistryofForeignTrade,whosepurpose
istoimplement theforeign tradepolicy formulated bytheNational Government, facilitating theprivate
sector'sactivitiessoastocontributetotheobjectiveofmodernizingandinternationalizingtheColombian
economy.G/SG/W/33
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4. Review procedure foradministrative actsarising outofaninvestigation.
- Question 8from Canada :
What aretheappeal procedures should asafeguard measure beapplied?
Under theColombian legislation, tariff measures areadopted bydecree ofthe
National Government andquantitative restrictions through resolutions oftheHigher Council for
Foreign Trade. Theaction known inColombia asapplication fordirect reconsideration liesagainst
suchdecisions, asdoestheaction forannulment asprovided forinArticle 69to74and84ofthe
Administrative Litigation Code.
5. Decisions, grounds fordecision andpublication.
- Question 7from Australia:
What provision isthere toensure theappropriate publication ofanotice ofthemeasures
andofthereport containing reasons asprovided forinArticles 3.1and4.2(c) ofthe
Safeguards Agreement ?
(a) Grounds forthedecisions.
Bothdecrees (where theduties areprovisional ordefinitive intheformofcustoms duties) and
resolutions oftheHigher Council forForeign Trade andINCOMEX must include thereasons and
grounds offactandoflawwhich explain thedecisions arising fromthetechnical study containing the
findings oftheinvestigation. Anyinterested party mayrequest acopyofthese documents bywritten
application tothecompetent authority. Allthisisbased onthe"right ofpetition" enshrined inour
National Constitution.
(b) Publication ofdecisions.
INCOMEX resolutions: Official Gazette oftheMinistry ofForeign Trade
CSCE resolution: Gazette oftheMinistry ofForeign Trade andOfficial Journal
Decrees: Official Journal
These actsdonothavebinding force untiltheyarepublished intheOfficial Journal orGazette,
asappropriate.
(c) Mandatory nature ofrecommendations.
- Question 8from Australia:
UnderArticle15,istheadoptionoftherecommendationonprovisionalmeasuresmandatory
upon theGovernment?
Thedecisions oftheHigher Council forForeign Trade arerecommendations andthusnot
mandatory upon theGovernment.G/SG/W/33
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(d) Adoption ofmeasures.
- Question 6from Australia:
Howaresafeguard measures imposed pursuant toArticles 13and15,e.g.aretheyimposed
byPresidential Decree?
Inthecaseoftariff measures, thedecision istaken through adecree issued bythePresident
oftheRepublic andtheMinisters ofForeign Trade, Finance andPublic Credit andtheMinistry of
theindustry concerned, depending ontheproduct.
Inthecaseofquantitative restrictions, thedecision istaken through aresolution issued bythe
Higher Council forForeign Trade, signed byitsPresident andSecretary.
6. Notifications andconsultations.
- Question Cfrom theEuropean Community:
CouldColombiaexplainindetailthecontentsofArticle21and,inparticular,theparagraph
which excludes, insome cases, consultations withthird countries?
ThisArticle wasrepealed byLaw170of1994 andreplaced byArticle 12ofthatLaw.
Consequently, notifications willbemade inaccordance withtheprovisions ofthatLaw.
- Question 11from Australia:
Article 21appears toenvisage notifications totheWTO andconsultations withmembers
affected only after anaffirmative recommendation bythe Customs, Tariffs and
Foreign Trade Committee. How isthisconsistent withtherequirements under Article 12ofthe
Safeguards Agreement?
ThisArticle wasrepealed byLaw170of1994 andreplaced byArticle 12ofthatLaw.
Consequently, notifications willbemade inaccordance withtheprovisions ofthatLaw.
- Question 12from Australia:
Whatprovisionistherefornotificationandconsultationpriortotheextensionofasafeguard
measure?
Seethereply totheprevious question.
- Question 1from Korea:
Article 21oftheColombian Lawseems toexclude some members from thenotification
andconsultation process provided forintheAgreement byholding that"The procedure provided
forinthisArticle [concerning notification andconsultations] shall notapply when themeasure
adopted isacustoms dutyaffecting aproduct inrespect ofwhich thecountry hasnotgranted
concessions atthemultilateral level, orwhen thedutylevied islessthansuchconcessions."
Theinvocation ofsuchastipulation however, would becontrary toArticle 12.3ofthe
Safeguards Agreement, which provides that"AMember proposing toapply orextend asafeguardG/SG/W/33
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measure shall provide adequate opportunity forprior consultations withthose Members having
asubstantial interest asexporters oftheproduct concerned."
ThisArticle wasrepealed byLaw170of1994 andreplaced byArticle 12ofthatLaw.
Consequently, notifications willbemade inaccordance withtheprovisions ofthatLaw.
(Japan):
NotificationsrelatingtosafeguardmeasuresshouldbemadetotheCommitteeonSafeguards
oftheWTO instead ofbeing made tothebodies oftheGeneral Agreement onTariffs andTrade
(GATT) asisprovided forinArticle 21oftheMinistry ofForeign Trade Decree No.809of
21April 1994 (hereinafter referred toas"theDecree").
Inaccordance withDecree 809of1994, notifications aremade toGATT bodies. However,
assubsequently, under Law170of1994, Colombia incorporated theWTO Agreements initsdomestic
legislation, henceforth notifications willbemade totheWTO Committee onSafeguards.
7. Evaluation ofsafeguard measures (quarterly reports).
- Question 3from Canada:
Arethere anyadditional administrative procedures followed byINCOMEX thatarenot
defined within thescope ofthisregulation?
Decree 809of1994regulates theapplication ofsafeguards. Anygapsinthese provisions are
filled using theexisting procedures intheColombian legalsystem.
(a) Adjustment measures.
- Question 2from Canada:
When canINCOMEX request information regarding theadjustment measures undertaken
bythedomestic industry (during aninvestigation oronlyattheextension enquiry level)?
Under Article 4ofDecree 809of1994, INCOMEX mayatanytimeduring theinvestigation
request fromthose concerned, orthelatter maysubmit foritsconsideration, information concerning
adjustment measures.
(b) Extension ofmeasures.
- Question 7from Canada:
Ifthesafeguard measure isprolonged, isthere arequirement tohold acomplete
re-investigation andallow interested parties tomake representations?
Decree 809of1994 doesnotprovide forare-investigation fortheextension ofameasure.
However, Article 7,paragraph 7.2,ofLaw170of1994 willbeapplied.
- Question 3from Japan:
Howareinvestigations conducted inthecaseofextension ofthesafeguard measure, which
arerequired byparagraph 2ofArticle 7oftheAgreement ofSafeguards?G/SG/W/33
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Seethereply totheprevious question.
(c) Amount ofaquota.
- Question Bfrom theEuropean Community:
According totheColombian legislation, when safeguard measures areimposed intheform
ofquantitative restrictions, theperiod inwhich theproduct concerned wassubject toalicensing
system isdisregarded when thelevelofthese restrictions isbeing determined. Could Colombia
explain thisposition?
Theamount ofaquota iscalculated onthebasisofimports effected inyears when theproduct
could befreely imported. Forproducts which weresubject toprior licensing asatDecember 1994,
sothatimports ofthem during 1992-1994 were restricted, ananalysis ofaperiod when theycould
befreely imported, albeit lessthanthreeyears, willbepreferred. Ifthisisnotpossible, therestriction
willbecalculated asapercentage ofdomestic consumption (Article 22).Article 5.1oftheAgreement.
- Question 2from Korea:
Article 22oftheColombian Law appears toallow thepossibility thataquantitative
restriction could reduce thevolume ofimports below theaverage annual level ofimports over
thepastthree years if"itcanbedemonstrated thatitismore appropriate totakeadifferent level.
Forthepurposes ofdetermining suchlevel, theperiod inwhich theproduct concerned wassubject
toaprior licensing system shall bedisregarded".
Article 5.1oftheSafeguards Agreement, however, requires thatquantitative restrictions
shall notreduce thequantity ofimports below thethree-year average "unless clear justification
isgiven thatadifferent levelisnecessary toprevent orremedy serious injury".
Theprevious reply applies tothisquestion.
(d) Procedures ofquarterly reviews oftheimpact ofasafeguard measure.
INCOMEX submits areport totheCSCE onthebasis ofthestatistical dataonimport trends
andinformation supplied bydomestic producers ontheperformance oftheir output, prices and
implementation ofadjustment measures (Article 30).
8. Refund ofprovisional duties.
- Question 9from Australia:
What provision isthere forduties collected asprovisional measures andArticle 16tobe
refunded (orsecurities taken under Article 28returned) ifthere isanegative final decision?
Ifthere isanegative finaldecision forlackofmerit, attherequest ofaparty theDirectorate
ofTaxes andCustoms, onthebasisofArticle 6ofLaw170of1994, willrefund theprovisional duties
orreturn securities asappropriate.G/SG/W/33
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9. Compensation.
- Question 8(third question) from Canada:
Describe thelegislative orregulatory provisions associated with thegranting of
compensation.
Compensation willbegranted inaccordance withtheprovisions ofArticle 8ofLaw170of
1994.
10. Agricultural safeguards forreasons ofthreat ofinjury andArticle 6,paragraph 6,on
serious injury inthecaseofagricultural andfishery products.
- Question 4from Australia:
HowdoesColombiajustifytheparametersetoutinparagraph6ofArticle6foragricultural
andfishery products asabasis fordetermining serious injury?
- Question 10from Australia:
How aretheprovisions ofChapter III:Agricultural safeguards ongrounds ofthreat of
injury tooperate? Howaretheyconsistent withtheSafeguards Agreement? Whyaretheyrequired
inaddition tothegeneral provisions intherestofthenotification?
- Question 5from Canada:
Definition of"threat ofserious injury": Canasafeguard measure beimposed asaresult
ofafallininternational prices without anyactual increase inimports occurring?
- Question 6from Canada:
What isthetheir "variable tariffs system"?
Theprovisions relating totheagricultural safeguard forreasons ofthreat ofinjury contained
intheDecree 809of1994 willnotbeapplied; norwilltheprovisions ofparagraph 6ofArticle 6
ofthesame Decree.
11. Application ofsafeguards tothesame product.
- Question 13from Australia:
Article 24provides foraperiod ofnon-application ofatleast oneyear. How isthis
consistent withArticles 7.5and9.2oftheSafeguards Agreement, which provide foraperiod
non-application ofatleasttwoyears?
- Question Dfrom theEuropean Community:
Article 24oftheColombian legislation requires aminimum period ofoneyearbetween
twosafeguard measures.G/SG/W/33
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Could Colombia explain itsposition inthelightofparagraphs 5and6ofArticle 7ofthe
Agreement onSafeguards?
- Question 3from Korea:
Article 24oftheColombian Lawstipulates that"Nosafeguard measure shall beapplied
again totheimportation ofaproduct which hasbeensubject tosuchameasure foraperiod of
timeequal tothatduring which such measure hadbeen previously applied, provided thatthe
period ofnon-application isatleastoneyear." Article 7.5oftheSafeguards Agreement, however,
prescribes thattheperiod ofnon-application should beatleasttwoyears.
Given theabove observations, itwould seem thattheColombian Lawshould bepromptly
modified tobeconsistent withtheSafeguards Agreement. Wetherefore request tobeinformed
ofthedetails concerning theColombian modification schedule.
- Question 2from Japan:
Theminimum non-application period should betwoyears inaccordance withparagraph 5
ofArticle 7oftheAgreement onSafeguards, instead ofoneyearasisprovided forinArticle 24
oftheDecree.
ThisArticle wasrepealed byLaw170andreplaced byparagraph 7.5ofArticle 7ofthatLaw.
Consequently, theprovisions ofthelatterArticle willbecomplied withfortheperiod ofnon-application.
12. Other applicable provisions:
(a) Administrative Litigation Code (Decree 01of1984 andamendments thereto);
(b) Political andMunicipal Regime Code;
(c) Code ofCivil Procedure.