Apresenta

1
THE DEVELOPMENT OF BRAZILIAN ANTI-DUMPING
SYSTEM INTERNATIONAL SEMINAR ON 10TH ANNIVERSARY
OF CHINAS ANTI-DUMPING LEGISLATION AND
PRACTICE Beijing June 24-26, 2007 FERNANDO DE
MAGALHÃES FURLAN DIRECTOR OF THE DEPARTMENT OF
TRADE REMEDIES - DECOM
Ministry of Development, Industry and Foreign
Trade
2
Trade Remedies in Brazil legal framework
Brazil adopts the provisions of
GATT-1947. Brazil adopts the Antidumping
Agreement and the Subsidies and Countervailing
Measures Agreement of the Tokyo Round (1979)
Law no. 313, July 30, 1948. Legislative Decree
no. 20, December 5, 1986, promulgated by Decree
no. 93.941, January 16, 1987. Legislative Decree
no. 22, December 5, 1986, promulgated by Decree
no. 93.962, January 23, 1987.
Brazil ratifies the Final Act embodying the
results of the Uruguay Round
Legislative Decree no. 30, December 15, 1994
Brazil incorporates the results of the Uruguay
Round into its legal system.
Decree no. 1.355, December 30, 1994
Provisions regarding the application of measures
under the Antidumping Agreement and the Subsidies
and Countervailing Measures Agreement
Law no. 9.019, March 30, 1995
Antidumping regulation Decree no. 1.602, August
23, 1995
Subsidy regulation Decree no. 1.751, December 19,
1995
Safeguard regulation Decree no. 1.488, May 11,
1995
3
Brazils Trade Remedies History Legal Background
and Regulations

• General Law of Administrative Process
• (Law no. 9.784, of January 29, 1999)
• All Brazilian investigations must observe its
  provisions, as well as
• Principles of
• Motivation
• Rule of reason
• Due process of law (broad defense
  contradictory),
• Legal predictability
• Public interest, among others.

4
Brazils Trade Remedies History Legal Background
and Regulations

• Administrative Reviews
• (Law no. 9.784, from January 19, 1999)
• Brazilian legislation provides interested parties
  a mechanism of administrative reviews of any
  decision taken by federal administration
• Envisages the protection of rights of the
  parties and the correct application of the
  legislation.
• It is in accordance with article 13 of the ADA,
  by which members shall maintain independent
  judicial, arbitral or administrative procedures
  for the purpose of the prompt review of
  administrative actions.

5
Changes and Developments in Regulations and in
the Decision-Making Process

• 1987 It was the responsibility of the Customs
  Policy Commission (CPA), in the Ministry of
  Finance, to implement the newly Brazilian
  antidumping and safeguard regulations (Decrees
  no. 93.941 and no. 93.962, of January 1987).
• Such regulations claimed improvements and were
  marginalized since Brazilian industry remained
  resorting to high tariffs and administrative
  import controls in order to gain protection.
• 1990 Extinction of CPA and creation of the
  Department of Foreign Trade, under the new
  Ministry of Economy, Finance and Planning.

6
Changes and Developments in Regulations
and Decision-Making Process

• 1992 Establishment of the Secretariat of
  Foreign Trade (SECEX), under the newly
  re-structured Ministry of Industry, Trade and
  Tourism (MICT).
• 1995 Creation of the Department of Trade
  Remedies (DECOM), under the scope of SECEX
  (simultaneously to the publishing of the Decrees
  that regulated the use of trade remedies
  instruments in Brazil).

7
Changes and Developments in Regulations
and Decision-Making Process
Decisions to impose provisional or definitive
measures, and to approve price undertakings were
taken jointly by the Ministers of Industry and
Trade and of Finance Decisions were (and still
are) based on the findings of DECOM, which was
responsible for the conduction of investigations
and for the determination of the existence of
dumping/subsidies, injury and causation, and the
adequacy of safeguard measures.
8
Changes and Developments in Regulations
and Decision-Making Process

• 1999 Creation of the Ministry of Development,
  Industry and Foreign Trade (MDIC), replacing
  MICT.
• gtgt Maintenance of structure
• gtgt The responsibility for the conduction of trade
  remedies investigations remained with DECOM,
  under SECEX.
• gtgt Change of decision-making process in trade
  remedies determinations.

9
Changes and Developments in Regulations
and Decision-Making Process

• Trade remedies decision-making
• Chamber of Foreign Trade (CAMEX)
• levies provisional or definitive antidumping and
  countervailing measures
• approves price undertaking
• approves safeguard measures.
• SECEX (based on DECOMs recommendations)
• decision on the commencement of investigations
• decision on the termination of investigations

10
Changes and Developments in Regulations
and Decision-Making Process

• CAMEX
• Ministerial level deliberating chamber created
  in September 1995.
• 7 Members MDIC and Ministries of External
  Relations, Finance, Agriculture, Planning, Rural
  Development and the Presidency (other authorities
  may be invited when appropriate).
• Its competences include the draft, adoption,
  implementation and coordination of all policies
  and activities related to Brazilian foreign trade
  of goods and services.

11
Changes and Developments in Regulations
and Decision-Making Process

• CAMEX
• GTDC
• (Trade Remedies Technical Group)
• GTDC examines DECOMs recommendations on
  provisional and definitive measures as well as
  administrative reviews
• GTDC members are technical level representatives
  from the same 7 ministries of CAMEX

12
Changes and Developments in Regulations
and Decision-Making Process

• GTDC
• GTDC meetings discuss DECOMs recommendations
  before they are presented for the Ministers final
  decision.
• GTDC sends DECOMs recommendation, eventually
  with dissenting opinions, to GECEX.

13
Changes and Developments in Regulations
and Decision-Making Process

• GECEX
• (Executive Committee of CAMEX)
• Vice-Ministerial level body
• Prepares decisions for CAMEX
• GECEX decisions must be consensual

14
Decision-Making Process
Dumping Subsidies Increased imports
Injury to domestic Industry and causal link
15
The Brazilian Department of Trade Remedies
DECOM
DECOM is one of the four departments within the
Secretariat of Foreign Trade, of the Ministry of
Development, Industry and Foreign Trade. It was
created in 1995.
SECEX
DECEX
DEINT
DECOM
DEPLA
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The Brazilian Department of Trade Remedies
DECOM
DECOM is structured according to the concerned
areas
DECOM
CGAN
CGIN
CGAP
CGMA
CGAN Division of Exporter Support, Rules and
International Negotiations CGAP Division of
Agricultural Products CGIN Division of
Intermediary Products CGMA Division of Metal and
Industrial Products
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ANTIDUMPING INVESTIGATIONS IN BRAZIL
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• Brazilian antidumping regulation
• DECREE No. 1.602, from 1995
• Provides relevant and detailed rules for the
  conduction of antidumping investigations.
• Guidelines for the determination of dumping
  margin, injury to the domestic industry and
  causation, according to the provisions of the
  Agreement on Implementation of Article VI
  (Antidumping Agreement) of GATT-1994.

19

• Brazilian antidumping regulation
• Complementary implementation rules
• Circular SECEX no. 21, of April 2, 1996
• Rules and instructions for the filing of
  applications
• Strict requirements towards the necessary
  information for analysis of dumping, injury and
  causation according to the provisions of Decree
  no. 1.602.

20

• Brazilian antidumping regulation
• Complementary implementation rules
  (continuation)
• Circular SECEX no. 59, of November 28, 2001
• Rules on confidential information
• Time limits for the submission of information
• Rules for electronic submission of information in
  order to guarantee deadline accomplishment by
  interested parties

21
Antidumping in Brazil

• INITIATION AND SUBSEQUENT INVESTIGATION
• Application considered appropriate
• Initiation of investigation (Circular SECEX)
• Questionnaires (40 days 30 days)
• Evaluation and request of complementary
  information (deficiency letters)
• On spot investigation (domestic producers,
  importers, exporters)
• Eventual preliminary determination
• A final public hearing is held wherein the
  interested parties shall be notified on
  the essential facts under examination. Interested
  parties are allowed to submit comments 15 days
  after the hearing
• Final antidumping determination (CAMEX Decision)

22
Antidumping in Brazil

• ANTIDUMPING DUTY
• Decree no. 1.602 provides that antidumping
  measure shall be calculated by imposing
• ad valorem duty on the customs value of the
  merchandise, on a CIF basis or
• specific duties, either fixed or variable, set in
  US dollars and converted to Brazilian currency
• or a combination of both.
• Most recent Brazilian practice emphasizes the
  adoption of specific duties, fixed or variable

23
Antidumping in Brazil

• ANTIDUMPING DUTY
• According to the ADA, it is up to the authority
  of the importing member the decision whether the
  amount of the antidumping duty to be imposed is
  the full margin of dumping or less.
• Brazilian practice
• LESSER DUTY
• The duty is calculated in order to only
  neutralize the injury to the domestic injury.

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Antidumping in Brazil Statistics 1988 April 2007
Investigations Initiated 200 Antidumping duties 81 40
Investigations Initiated 200 Price undertakings 11 6
Investigations Initiated 200 Negative determinations 91 45
Investigations Initiated 200 Ongoing investigations 17 9
Reviews Initiated 55 Antidumping duties 38 69
Reviews Initiated 55 Price undertakings 0 0
Reviews Initiated 55 Negative determinations 11 20
Reviews Initiated 55 Ongoing investigations 6 11
Total 255
25
Antidumping in Brazil Positive Final
Determinations, by country 1988 April 2007
26
Ongoing investigations and measures in force in
Brazil, as of April 2007
Ongoing investigations Trade remedies in force Trade remedies in force
Antidumping 23 Antidumping 48
Antidumping 23 Price Undertaking 3
Subsidies/Countervailing Measures 1 1 1
Safeguards 0 1 1
TOTAL 24 53 53
6 reviews
27
3 price undertakings (Argentina, Chile and
Uruguay) 48 definitive antidumping duties
28
THE DEVELOPMENT OF BRAZILIAN ANTI-DUMPING
SYSTEM INTERNATIONAL SEMINAR ON 10TH ANNIVERSARY
OF CHINAS ANTI-DUMPING LEGISLATION AND
PRACTICE Beijing June 24-26, 2007 FERNANDO DE
MAGALHÃES FURLAN DIRECTOR OF THE DEPARTMENT OF
TRADE REMEDIES - DECOM
THANK YOU!
Ministry of Development, Industry and Foreign
Trade