RESTRICTED
WORLD TRADE G/ADP/W/28/Suppl.1
G/SCM/W/35/Suppl.1
ORGANIZATION 14July1995
(95-2003)
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
Supplement
Thefollowing communication, dated 11July,hasbeenreceived fromtheUnited States Trade
Representative.
_______________
Enclosed areadditional questions concerning theinjury aspects ofVenezuela 'santi-dumping
andcountervailing dutylegislation which weintend topursue atnextweek'smeeting.
INJURY
43. Article 50oftheRegulations states that"itshallbedetermined thatthere ismaterial injury
tothedomestic industry when atleasttwoofthefollowing conditions aremet". These conditions
pertain tovolume effects, priceeffects, andimpact ofthesubject imports. Howdoesthiscomply with
therequirements ofArticles 3.1and3.2oftheA-DAgreement andArticles 15.1and15.2oftheSCM
Agreement thatpriceeffects, volume effects, andimpact ofthesubject imports allmustbeconsidered?
44. Paragraph (1)ofArticle 50oftheRegulations states thatimport volume willbeconsidered
significant when itrepresents atleast5percentofthedomestic production oflikegoods. How is
thisprovision consistent withtherequirements ofArticle 3.2oftheA-DAgreement andArticle 15.2
oftheSCM Agreement?
45. Does theprovision inparagraph (1)ofArticle 50oftheRegulations mean thatimport volume
willnotbeconsidered significant when itdoesnotreach the5percentlevel?
46. What isthemeaning ofthelanguage inparagraph (2)ofArticle 50oftheRegulations concerning
preventing price increases "which, ifgoods hadnotbeenimported, would haveoccurred inanatural
andcompetitive manner"? How isthelanguage, asconstrued, consistent withtherequirements of
Article 3.2oftheA-DAgreement andArticle 15.2oftheSCM Agreement?
47. What isthemeaning ofthelanguage inparagraph (3)ofArticle 50oftheRegulations stating
that"[the Commission maydetermine which oftheaforementioned [impact] headings apply toan
investigation"? Does thismean thattheVenezuela Anti-Dumping andSubsidies Commission (VASC)
hasthediscretion todisregard certain ofthespecified impact factors inaparticular investigation?G/ADP/W/28/Suppl.1
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Ifso,howisthisconsistent withtherequirements ofArticle 3.4oftheA-DAgreement andArticle 15.4
oftheSCM Agreement?
48. There isnorequirement intheLaworRegulations forconsideration ofthemagnitude ofthe
dumping margin inmaking material injury determinations. Intheabsence ofanexplicit provision,
howwould Venezuela ensure theconformity ofitspractice withArticle 3.4oftheA-DAgreement?
49. Doesparagraph (5)ofArticle 51oftheRegulations apply togoods imported solely forreexport?
How isthisprovision consistent withArticle 3.7(iv) oftheA-DAgreement andArticle 15.7ofthe
SCM Agreement, which merely require examination ofinventories oftheproduct being investigated?
50. Article 11,Single Paragraph oftheLawstates thatinjury canbepresumed forimports whose
country oforigin donotrequire injury testsinanti-dumping dutyinvestigations involving Venezuelan
imports. Howisthisprovision consistent withArticles 1and3oftheA-DAgreement, which require
thatthere beadetermination ofinjury before anyanti-dumping measure isimposed?
51. Article 12,Single Paragraph oftheLawstates thatsubject imports maybecumulated with
imports from other countries thathavebeenthesubject ofananti-dumping orcountervailing duty
investigation during theyearprior tothedateoftheinitiation oftheanti-dumping orcountervailing
dutyinvestigation inquestion. How isthisconsistent withtheprovision inArticle 3.3oftheA-D
Agreement andArticle 15.3oftheSCM Agreement thatcumulated imports mustbe"simultaneously"
subject toinvestigation?
52. Article 12,Single Paragraph oftheLawdoesnotcontain arequirement thatVASC examine
conditions ofcompetition between subject imports andbetween subject imports andthedomestic like
goods before determining tocumulate subject imports from different countries. Intheabsence of
anexplicit provision, howwould Venezuela ensure theconformity ofitspractice withArticle 3.3of
the-DAgreement andArticle 15.3oftheSCM Agreement?
53. Article 47oftheRegulations, when readinconjunction withArticle 14oftheLaw, suggests
thatadetermination toimpose anti-dumping orcountervailing duties maybebased onafinding on
material injury orthreat toaslittleas30percentofthedomestic industry. Howissuchaprovision
consistent withtherequirements ofArticles 3.1,3.4,and4.1oftheA-DAgreement, andArticles 15.1,
15.4, and16.1oftheSCM Agreement?
54. Article 14oftheLawandArticle 48oftheRegulations indicate thatexclusion fromthedomestic
industry ofproducers whoareimporters orwhoareassociated withexporters ofthemerchandise under
investigation isautomatic. Howisthisconsistent withfootnote 11toArticle 4.1oftheA-DAgreement
andfootnote 46toArticle 16.1oftheSCM Agreement?
55. Theprovisions oftheLawandRegulations concerning imposition ofprovisional measures
(Articles 19,20,60,and61oftheLaw; Articles 53and78-82 oftheRegulations) donotappear to
requirethattheVASCpublishanexplanationofadeterminationwhethertoimposeprovisionalmeasures.
How hasVenezuela implemented therequirement foranexplanation ofadetermination whether to
impose provisional measures embodies inArticle 12.2.1 oftheA-DAgreement andArticle 22.4of
theSCM Agreement? Intheabsence ofaspecific provision, howwoldVenezuela ensure theconformity
ofitspractice withtheAgreements?
56. TheprovisionsinArticle53oftheLawconcerningdeterminationstoimposedefinitivemeasures
donotexpressly require thattheexplanation ofthedetermination contain reasons fortheacceptanceG/ADP/W/28/Suppl.1
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orrejection ofarguments made byexporters andimporters. Isthisconsistent withtherequirement
ofArticle 12.2.2 oftheA-DAgreement?
57. Dointerestedpartiesreceiveaccesstonon-confidentialinformationsubmittedbyotherinterested
parties pursuant toArticle 44oftheLawbefore theymustpresent arguments totheTechnical Secretariat
pursuant toArticle 45oftheLaw? Intheabsence ofanexplicit provision, howwould Venezuela ensure
theconformity ofitspractice withArticle 6.4oftheA-DAgreement andArticle 12.3oftheSCM
Agreement?
58. Does Venezuelan lawimplement therequirement ofArticle 6.9oftheA-DAgreement and
Article 12.8oftheSCM Agreement thattheauthorities shallinform interested parties of"theessential
factsunder consideration" before afinaldetermination ismade? There isnoprovision addressing this
issue, andArticle 44oftheLawaddresses onlynon-confidential information provided byotherinterested
parties. Intheabsence ofanexplicit provision, howwould Venezuela ensure theconformity ofits
practice withtheAgreements?
59. Does Venezuelan lawimplement therequirements ofArticle 5.8oftheA-DAgreement and
Article 27.9oftheSCM Agreement concerning termination ofinvestigations incircumstances when
imports arenegligible? There isnoprovision intheLaworRegulations directly addressing thisissue.
Intheabsence ofanexplicit provision, howwould Venezuela ensure theconformity ofitspractice
withtheAgreements?
60. Under whatconditions maytheVASC determine toextend anti-dumping andcountervailing
duties, orundertakings, beyond thefive-year maximum period, pursuant toArticle 57oftheLaw?
How arethese conditions consistent withtheprovisions ofArticle 11oftheA-DAgreement and
Article 21oftheSCM Agreement?