RESTRICTED
WORLD TRADE G/ADP/W/142
G/SCM/W/149
ORGANIZATION 24October 1995
(95-3251)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYBRAZIL1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENT
Thefollowing communication, dated 20October 1995, hasbeenreceived fromtheHong Kong
Economic andTrade Office.
_______________
Questions Anti-Dumping Legislation
General
1. TheBrazilian notification under Article 18.5oftheWTO A-DAgreement, asreproduced in
theWTO Document G/ADP/N/1/BRA/1, provides that:
(a) theMarrakesh Agreement anditsAnnexed Agreements hasbeenincorporated into
theBrazilian legalsystem, intheirfulltext,byDecree No.1355, of30December 1994;
(b) Provisional Measure (PM) No.926of1March 1995 hasbeenintroduced toreflect
theincorporation oftheWTO A-DAgreement intotheBrazilian legalsystem; and
(c) Brazil ispresently drafting anewregulation inaccordance withtheprovision ofthe
WTO A-DAgreement.
Question : (a) What isthelegaleffect oftheincorporation oftheWTO A-DAgreement into
theBrazilian legal system? Would thisgivetheWTO A-DAgreement the
force oflawinBrazil? AretheBrazilian authorities obliged bylawtoabide
bytheprovisions oftheWTO A-DAgreement?
(b) Would Brazil explain therelationship between theWTO A-DAgreement,
Provisional Measure No.926andtherelevant regulations? Which takes
precedence incaseofinconsistency? Would theBrazilian authorities takethe
WTO A-DAgreement astheprimary source ofauthority inA-Dmatters?
Orwould theyonlyrefer toitasasupplement totheProvisional Measure
and/or other domestic regulations orasalastresort?
1G/ADP/N/1//BRA/1-G/SCM/N/1/BRA/1G/ADP/W/142
G/SCM/W/149
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(c) What isthelegislative timetablefortheregulation under preparation? Would
thelegislation bring theBrazil 'sexisting lawintoconformity withtheWTO
A-DAgreement?
Provisional Measures No.926
2. Article 3(PMNo.926)-Amount ofprovisional measure
Article 7.2oftheWTO A-DAgreement provides thatprovisional measures maytaketheform
ofaprovisional dutyorasecurity equal totheamount oftheA-Ddutyprovisionally estimated, being
notgreater thantheprovisionally estimated margin ofdumping.
Article 3ofPMNo.926provides foranoffer bytheimporter ofaguarantee equivalent to
thetotalvalue oftheobligation andother legalcharges, either intheform ofadeposit inmoney or
bankguarantee.
Question: What ismeant by"total value oftheobligation"? Howisitcalculated? What arethe
possible "other legalcharges"? Isitpossible thattheguarantee offered bytheimporter
would exceed theprovisionally estimated margin ofdumping?
3. Article 3.1(PMNo.926)-Correction forinflation
Article 7.2oftheWTO A-DAgreement provides thatprovisional measures maypreferably
taketheform ofasecurity equal totheamount oftheA-Ddutyprovisionally estimated.
Article 3.1ofthePMrequires theguarantee toensure thesamelevelofcorrection forinflation
usedforthepurposes offederal taxes, including interest, starting fromthedateprovisional duties were
imposed.
Question : Would Brazil explain thepractical effect ofArticle 3.1?
4. Article 4(PMNo.926)-Undertakings
Article 8oftheWTO A-DAgreement provides forthesuspension ortermination ofA-D
proceedings without theimposition ofprovisional duties upon receipt ofsatisfactory voluntary
undertakings from anyexporter. Theundertakings mayalsobesuggested bytheauthorities ofthe
importing country.
Article 4ofPMNo.926provides thatanundertaking maybeentered intowiththeexporter
orwiththegovernment oftheexporter 'scountry.
Questions: (a) Would Brazil explain howanundertaking maybeentered intowith the
government oftheexporter 'scountry anditsoperation?
(b) When suchanundertaking hasbeenentered into,willindividual exporter be
abletoreject theundertaking without prejudice totheconsideration ofitscase?
(c) Does thelesser dutyruleapply inthecaseofundertaking?G/ADP/W/142
G/SCM/W/149
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5. Article 12-Administrative process referred toinArticles 1to5
Article 12provides thattheadministrative process referred toinArticles 1and5shallcomply,
where applicable, withtheprovisions ofResolution 1227 of14May1987, withtheamendments of
Resolution 1582of17February 1989which areyettobebrought intoconformity withtheWTO A-D
Agreement.
Question: Would theregulation under preparation bring theResolutions intoconformity with
theWTO A-DAgreement? AreResolution provisions inconsistent with theWTO A-DAgreement
applicable pending amendment?
KeyIssues intheWTO A-DAgreement which arefound silent intheBrazilian Legislation
6. TheBrazilian legislation seems tobesilent onanumber ofkeyissues onwhich therearespecific
provisions intheWTO A-DAgreement. Notable examples areasfollows:
- determination ofnormal value andexport price (Article 2.1-2.3)
- comparison method (Article 2.4)
- determination ofinjury (Article 3)
- standing requirement forpetitioner (Article 5.4)
- standards fortermination ofacasei.e.deminimis dumping margin, negligible volume
ofdumped imports andnegligible injury (Article 5.8)
- sampling (Article 6.10)
- newcomer review (Article 9.5)
- judicial review (Article 13)
- procedures foron-site verification (Annex I)
- public notice requirements (Article 12)
Question: Would Brazil confirm thatitwould follow strictly therelevant provisions intheWTO
A-DAgreement onthese issues? Would Brazil introduce relevant specific provisions
intoitsnewRegulation?