RESTRICTED
WORLD TRADE G/ADP/W/270
G/SCM/W/280
19February 1996
ORGANIZATION(96-0606)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYAUSTRALIA1CONCERNING
THE NOTIFICATION OFCOLOMBIAN LAWS AND REGULATIONS2
Thefollowing communication, dated 19January 1996, hasbeenreceived fromthePermanent
Mission ofColombia.
_______________
1. Article 1excludes imports from members oftheCartagena Agreement from thescope
oftheDecree. Arethese countries totally exempt from anti-dumping andcountervailing duty
action, oraretheydealt withunder separate legislation?
Investigations intodumping orsubsidies, undertaken byColombia inrespect ofimports
originating inmember countries oftheCartagena Agreement, areconducted inaccordance with
Decision 283oftheCommission oftheCartagena Agreement.
2. What provision ismade todealwith exchange rateconversions inaccordance with
Article 2.4.1 oftheAnti-Dumping Agreement?
Byvirtue ofitsincorporation inColombian national legislation through Law170of1994,
Article 2.4.1 oftheAnti-Dumping Agreement shall apply inmatters relating toexchange rate
conversions.
3. Thethird paragraph ofArticle 10would appear toallow acomparison ofthenormal value
established onaweighted average basis toprices ofindividual export transactions when there
isanyvariation inthenormal value andexport price during theperiod ofreview. Would this
onlybedone under theconditions setoutinArticle 2.4.2 oftheAnti-Dumping Agreement?
Yes. Anormal value established onaweighted average basis maybecompared toprices of
individual export transactions onlywhere theconditions setoutinArticle 2.4.2 oftheAgreement are
met.
4. Indefining asubsidy, Article 11refers to"bounty, aid,premium, stimulus orincentive".
How arethese defined anddotheyrequire afinancial contribution bygovernment?
1G/ADP/W/224-G/SCM/W/234.
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Article 11ofDecree 299of1995 clearly states thatanimport isconsidered ashaving been
subsidized when theproduction, manufacture, transport orexport oftheimported good orofitsraw
materials hasreceived anybounty, aid,premium, stimulus orincentive from thegovernment ofthe
country oforigin orofexport orfrom itspublic orprivate agencies.
However, although nodefinition isprovided intheaforementioned Article oftheterms bounty,
aid,premium, stimulus andincentive, these aretaken tomean afinancial contribution inaccordance
withArticle 1oftheSubsidies Agreement, incorporated inColombian legislation through Law170
of1994.
5. HowwillINCOMEX determine under theDecree whether asubsidy isnotcountervailable
(because itisnotspecific, fulfils thecriteria ofArticle 8.2oftheSubsidies Agreement orconforms
fully withtheprovision ofAnnex 2oftheAgriculture Agreement)?
Colombian legislation hasnospecific regulations. Theprovisions setoutintheSubsidies
Agreement andtheAgriculture Agreement shallapply.
6. How would theamount insubparagraph 1ofthesecond paragraph ofArticle 12be
established? WillColombia beproviding implementing regulations onthemethods tobeused
tocalculate thebenefit totherecipient asrequired under Article 14oftheSubsidies Agreement?
Colombia willestablish regulations forthemethods tobeusedincalculating thebenefit to
therecipient inkeeping withtheguidelines contained inArticle 14oftheAgreement.
Inaccordance withsubparagraph 1ofArticle 12,theamount ofthesubsidy willbedetermined
bydeducting from thetotalsubsidy anycosts incurred bytherecipient inobtaining thesubsidy.
7. Istheexplicit provision inthelegislation forimmediate termination during aninvestigation
where themargin ofdumping ortheamount ofcountervailable subsidization isdeminimis ,or
thevolume ofdumped/subsidized imports arenegligible?
Article 41ofDecree 299of1995 provides thattheinvestigation maybedeemed concluded
atanytime, interalia,when themargin ofdumping, theamount ofthesubsidy orthevolume ofthe
imports isdeminimis .Forsuchpurposes, deminimis amounts andnegligible volumes ofdumped
orsubsidized imports aredefined inaccordance withtheterms setoutintheAnti-Dumping Agreement
andtheSubsidies Agreement.
8. Under paragraph 2ofArticle 13willINCOMEX alsoconsider themagnitude ofthemargin
ofdumping?
Article 13willbeapplied consistently withtheAnti-Dumping Agreement, andtherefore the
sizeofthemargin ofdumping willbetaken intoaccount indetermining injury.
9. WhatrequirementisthereforINCOMEXtoconsiderknownfactorsotherthanthedumped
orsubsidized imports thatareinjuring thedomestic industry?
Article 3.5oftheAnti-Dumping Agreement andArticle 15.5oftheSubsidies Agreement,
incorporated inColombian legislation through Law170of1994, expressly statethatanyfactors other
thandumped imports known tobeinjuring thedomestic industry shallalsobeexamined.G/ADP/W/270
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Experience hasshown thatquestionnaires completed bytheinterested parties intheinvestigation
provide theinformation onthese factors.
10. What ismeant inthesecond paragraph ofArticle 19bytheamount ofduties "may ...
beexpressed ...inaccordance withabaseprice"?
Thebasepriceisthepriceestablished asreflecting normal market conditions. When theanti-
dumping orcountervailing dutyisexpressed interms ofabaseprice, itmeans thattheamount ofthe
dutyisvariable andwillbeequivalent tothedifference between thebaseprice andthedeclared price.