Brazil Issues Additional Regulations Related to Anti-dumping Proceedings

Market News

Brazil Issues Additional Regulations Related to Anti-dumping Proceedings

The Brazilian government recently issued two regulations detailing the information that must be included in petitions for anti-dumping investigations (CAMEX Directive 41/2013) and anti-circumvention reviews (CAMEX Directive 42/2013). These regulations are in addition to four measures issued in September 2013 setting forth new requirements regarding (1) the legal representation of foreign and domestic stakeholders in trade remedy proceedings (CAMEX Directive 38/2013), (2) requests for a scope determination (CAMEX Directive 37/2013), (3) price undertaking proposals submitted by producers/exporters in AD investigations (CAMEX Directive 36/2013), and (4) submission of documents to the Trade Remedy Department (Departamento de Defensa Comercial, or DECOM) within the framework of Decree 8058/2013 (CAMEX Directive 34/2013).

Among other things, Directive 41/2013 requires AD petitions to include evidence of the existence of dumping, injury to a domestic industry, and causality between dumping and injury. DECOM has the authority to conduct onsite verifications of the information provided, which must be accompanied with appropriate evidence, sources and methodological information. Petitioners must describe in detail the product to be covered by the scope of the investigation, describing as applicable its inputs, chemical composition, model, dimensions, capacity, power, presentation, uses and applications, and distribution channels. Petitioners must also provide information on the production process in the targeted countries, the tariff classification of the product, and any literature, catalogues, marketing materials or other documents that provide technical information regarding the product. Petitions must also include, among many other things, information on like products manufactured in Brazil as well as any similarities between the domestic and imported products and import statistics for the foreign products.

Petitions for anti-circumvention reviews must also contain a range of information, including whether the products to be investigated consist of (i) imported parts, pieces or components to be manufactured in Brazil into a product covered by an AD duty order; (ii) goods made in a third country from parts, pieces or components originating in a different country covered by a relevant AD duty order; or (iii) goods made in a country covered by a relevant AD duty order that have undergone minor modifications that do not change their use or final destination. Petitions must also describe in detail the alleged circumvention of the applicable AD duty order and list all countries involved whenever possible.