RESTRICTED
WORLD TRADE G/ADP/Q1/BRA/5
G/SCM/Q1/BRA/5
ORGANIZATION 21April 1998
(98-1596)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Questions from JAPAN
toBRAZIL1
Thefollowing communication, dated 15April 1998, hasbeenreceived from thePermanent
Mission ofJapan.
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Q.1. Article 2.2oftheADAgreement provides that"themargin ofdumping shallbedetermined
bycomparison ...withthecostofproduction inthecountry oforigin plusareasonable amount for
administrative, selling andgeneral costsandforprofits". Could Brazil explain thereason whygeneral
costs areexcluded from thenormal value inArticle 6and6.1ofthe"Decree No.1602 of
23August 1995" (hereinafter "theDecree")?
Q.2. Article 3.6oftheADAgreement provides that"[t]he effect ofthedumped imports shallbe
assessed inrelation tothedomestic production ofthelikeproduct". How doesBrazil explain the
difference between "thedomestic production" above and"thedomestic industry" stated inArticle 15.2
oftheDecree?
Q.3. Article 16oftheDecree provides that"[t]he determination oftheexistence ofathreat ofmaterial
injury shallbebased onfactsandonaconvincing reason". Does itmean that"aconvincing reason"
isderived from "facts"? Ifnot,what canbea"convincing reason" todetermine theexistence ofa
threat ofmaterial injury?
Q.4. AstoArticle 17.3oftheDecree, what isthecriteria on"control operationally"? Inwhich
cases iscontrol considered toexistoperationally, andinwhich cases not?Please show themconcretely
andcomprehensively.
Q.5. Article 21.3(a) oftheDecree provides that"domestic producers ofthelikeproduct andthe
association thatrepresents them". Could Brazil show numerical criteria todefine "represent"?
Q.6. AstoArticle 59oftheDecree, please explain theprocedure for"animmediate summary review"
anditsconsistency withtheADAgreement.
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1G/ADP/N/1/BRA/2 andG/SCM/N/1/BRA/2