RESTRICTED
WORLD TRADE G/ADP/W/44
G/SCM/W/52
ORGANIZATION 4August 1995
(95-2310)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFVENEZUELA OFLAWS
AND REGULATIONS UNDER ARTICLES 18.5AND 32.6THE AGREEMENTS
Thefollowing communication, received 18July1995, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
_______________
WithregardtoVenezuela'scountervailinglegislation,notifiedon6April1995underArticle32.6
oftheWTO Subsidies Agreement (document G/SCM/N/1/VEN/1), theEuropean Community hasthe
following questions:
General
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 1994 andtheAgreement onSubsidies andCountervailing
Measures. ThisAgreement appears nottohavebeenattached tothenotification.
(b) LawonUnfair Foreign Trade Practices ("the Law")
(c) Regulations under theLawonUnfair Foreign Trade Practices ("the Regulations")
(d) Decision 283oftheCommission oftheCartagena Agreement
1. Please explain whatisthescope ofeachpartofthislegislation andwhatistheirrelation. In
caseofconflicts, which ofthefourparts willprevail?
Definition of"like product"
2. Could theVenezuelan authorities explain howtorender compatible Article 6oftheRegulation
(which defines the"likeproduct" inrelation totrademarks) withfootnote 46ofSCM which bases the
definition ofthe"like product" onthecharacteristics oftheproduct?G/ADP/W/44
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Definition ofsubsidies
3. Article 39oftheRegulation saysthatasubsidy shallbeconsidered toexistwhen "agovernment
orpublic ormixed body confers anadvantage...". Please supply thedefinition ofamixed body.
Calculation ofthebenefit
4. Article 41oftheRegulation points outthatforcalculating theamount ofthesubsidy in
accordance withArticle 10oftheLaw, theCommission shallexamine itsnature andcalculate itsimpact
ontheprice. Please explain howthiswillwork inpractice.
(1) What isconsidered asthebenefit inthecaseofcredits andofcredit guarantees?
(2) CanVenezuela alsoexplain howtheimpact canbecalculated incases notspecifically
determined inthelaw,e.g., howwillthebenefit becalculated inthecaseofthe
provision ofgoods orservices orpurchase ofgoods bygovernments?
5. Inrelation toArticle 45oftheRegulation: howdoesVenezuela arrive atthefigure often
years asstandard allocation period?
Green Subsidies andnon-actionable subsidies
6. HowwilltheVenezuelanauthoritiesimplementtheprovisionsofArticle8SCMandfootnote35
SCM asthere isnomention ofthese intheVenezuelan legislation?
Consultations
7. Noreference ismade toconsultations asprovided forinArticle 13(1) SCM before theinitiation
ofanyinvestigation. WilltheWTO Member concerned beconsulted before theinitiation ofan
investigation oratlaterstages?
Deminimis rule
8. Aredeminimis rules foreseen intheVenezuelan legislation asprovided forinArticle 11(9)
SCM?
Standing
9. Inrelation toArticle 42oftheLaw, please explain whether Venezuela considers thisprovision
consistent withArticle 11(4) SCM, inparticular thatatleast25percentofthedomestic industry should
support acomplaint.
Complaints
10. According toArticle 37oftheLaw"anynatural orlegalperson which produces inVenezuela
goodsidenticalorsimilartothoseallegedlydumpedorsubsidizedmaysubmittotheTechnicalSecretariat
oftheCommission anapplication fortheinitiation ofthecorresponding investigation". How will
Venezuela ensure thatthisprovision fulfils theconditions ofArticle 11(1) and11(4) SCM?
11. According toArticle 38oftheLaw,theCommission mayalsoinitiate aninvestigation exofficio .
Arethe"special circumstances" ofArticle 11(6) ofSCM foreseen?G/ADP/W/44
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Investigation
12. Under theSingle Paragraph ofArticle 42oftheLawnomention hasbeenmade oftheobligation
under Article 12.1.3 SCM ofproviding thefulltextofthewritten application totheknown exporters.
Willtheauthorities beinaposition tofulfil thisobligation?
13. TheSingle Paragraph ofArticle 45oftheLawrefers totheCode ofCivil Procedure forthe
nature andevaluation oftheevidence. Please explain theconsequence ofthis. Willthisimply a
deviation from theSCM andifso,onwhatpoints?
14. Thetimetoreply thequestionnaires isnotspecified inArticle 70oftheRegulation. How
willthistimelimitbedetermined?
15. Under Article 59oftheLaw. What isconsidered asfrivolous ormalicious?
Injury
16. TheSingle Paragraph ofArticle 11oftheLawpoints outthatnoproof ofinjury isrequired
andthatitmaybepresumed thatinjury, threat ofinjury andmaterial retardation existifthecountry
ofexport oroforigin doesnotrequire suchproof. Howdoesthissquare withArticle 17(1) bSCM?
17. Article48oftheRegulation.Whatarethecriteriatodeterminewhetherproducersareassociated,
arethese thesame asmentioned infootnote 48SCM?
18. Single Paragraph ofArticle 48oftheRegulation. HowwillVenezuela establish a"significant
andsustained growth"?
19. Under Article 50(1) oftheRegulation some percentages areestablished buttheycanbechanged
"ifthecircumstances ofthecasesorequire". Please elaborate andexplain. Article 15SCM establishes
thatnooneorseveral factors should beconsidered asgiving decisive guidance, butthewhole situation
should beconsidered. Isthisnotcontrary totherequirement ofthefulfilment ofatleasttwofactors
asestablished inArticle 50oftheRegulations?
Provisional duties
20. Article 60oftheLawonlymentions theobligation tonotify theimporter andthecustoms
authorities. Aretheinterested parties alsoinformed andaretheygiven theopportunity tosubmit
information andmake comments asprovided forinArticle 17(1) SCM?
21. There doesnotappear anymention oftheneedtorespect 60daysfromthedateoftheinitiation
oftheinvestigation fortheimposition ofprovisional duties. HowwillVenezuela ensure respect of
thisrequirement ofArticle 17(3) SCM?
22. Under Article 19oftheLaw,theCommission canchange theprovisional countervailing duties.
Onwhatcriteria orbasis? Dointerested parties havetheopportunity tosubmit comments inadvance?
Willanadditional investigation benecessary?
23. Article 81oftheRegulation permits toextend theprovisional duties tooneyear. Howcan
thisbereconciled withArticle 17(4) SCM?G/ADP/W/44
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Undertakings
24. Article 23oftheLawandArticle 56oftheRegulation donotseem torequire apreliminary
affirmative determination ofsubsidization andinjury. Would thissquare withtherequirements of
e.g.Article 18(2) SCM?
Termination
25. Under Article 57oftheLawtheCommission canextend theduties foran
other 5years. Which conditions arenecessary forsuchextension? Have theinterested parties the
righttosubmit comments? Willanewinvestigation becarried out?