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Compendium of Antidumping and Countervailing Duty Laws in the Western Hemisphere


Nicaragua

 

I. Legal Authority to Impose Antidumping and Countervailing Duties

A. Treaties or Agreements

Article VI of the GATT 1995, the WTO Antidumping Agreement ("AD Agreement") and the Agreement on Subsidies and Countervailing Measures ("SCM Agreement").

These Agreements apply to all WTO signatories.

B. Legislation

   The WTO AD and SCM Agreements are part of the national law as published in La Gaceta, the official gazette of the Republic of Nicaragua.

   The Constitution of Nicaragua is the supreme law of Nicaragua. It regulates the formulation and implementation of treaties, conventions, pacts, international trade agreements. By constitutional mandate the Legislative branch (National Assembly) approves all above mentioned agreements.

C. Regulations

   Nicaragua is a signatory of Resolution No. 12-95 of the Consejo de Ministros Responsables de la Integración Económica y Desarrollo Regional which approved the Central American Regulations on Unfair Trade Practices on 12 December, 1995 in San Pedro Sula, Honduras.

   The latter is fully consistent with the agreements of the WTO. All substantive aspects relating to unfair trading practices will be determined by Article VI of the GATT and the WTO Antidumping Agreement and the Agreement on Subsidies and Countervailing Measures, as well as the Protocol of Guatemala of the General Treaty on Central American Economic Integration (1993) and the Convenio sobre el Regime Arancelario y Aduanero Centroamericano.

D. Administrative Practice, Handbook or Guide

II. Authorities Responsible for Conducting Investigations

A. Injury

   Article 1 of the Central American Regulations on Unfair Trade Practices identify the authorities responsible for the conduct of investigations as the Dirección de Integración Económica del Ministerio de Economía.

   These authorities are responsible for the determination of serious damage, threat of serious damage or determinations with respect to material retardation to the establishment of national production as may be caused by unfair trade practices.

   In the case of a regional procedure it will be SIECA.

B. Antidumping and Countervailing Duties

   The investigating authority is the Directorate for Integration of the Ministry of Economic affairs, or the Directorate which is responsible for Central American economic integration issues in each country, or the technical unit responsible for the investigation of unfair trade practices.

   In the case of a regional procedure it will be SIECA. The Investigating Authority shall be responsible for questioning, analyzing and evaluating alleged unfair trade practices and for deciding whether it is appropriate to recommend the imposition of antidumping or countervailing duties, as the case may be.

III. Methodologies/Definitions

A. Like Product

   "Like product" is a product which is identical, i.e., alike in all respects to the product under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.

   These Regulations develop the provisions established in the Agreements of the WTO and also, as appropriate, the provisions of the Protocol of Guatemala and the Agreement on the Central American System of Tariffs and Customs. (CARUTP Articles 2&4).

B. Domestic Producers

   The Central American Regulations on Unfair Trade Practices develop the provisions established in the Agreements of the WTO, and therefore, the WTO definitions of Like Product are applied.

C. Standing

   Authorized to petition that an investigation be initiated are the representatives of the national production branch of the product injured by the imports regarding which the investigation is requested and the associations of producers that feel they are being adversely affected or threatened by imports allegedly under unfair trade practices.

   The Directorate of Economic Integration of the Ministry of Economic Affairs determines if the petition is made by the domestic industry, according to the regulations of the WTO, before making a decision to proceed with an investigation.

D. Polling

   If it is determined that the petition has not been made on behalf of a national production branch in accordance with the Agreements of the WTO. (Article 8-a of the CARUTP).

E. Normal Value

   The WTO standard is applied, in accordance with Article 2 of the CARUTP.

F. Calculation of Cost of Production

   According to the criteria established by the WTO in applying the Central American Regulations on Unfair Trade Practices, the costs of production are normally calculated according to a base that reflects the reality of the exporter or the producer subject to investigation as long as this takes into account generally accepted accounting principles as are generally accepted in the exporting country and reflect, in a reasonable way the costs associated with production and sales of the product under consideration.

   The authorities may consider all elements, including those relating to information provided by the exporter or the producer during the course of the investigation, as long as the costs reported by such persons are accurate reflections of traditional costs.

   To effect the determination of a normal value applicable to a similar product, the authorities may adjust the estimates of the cost of production in the country of origin in a manner that is reasonable in order to take into account administrative costs, cost of sales and other normal matters.

   Information drawn from real transactions for similar products may also be considered as long as they are not the sole determining base.

   Information may be related to: costs and prices relative to the home market of the exporter or producer; costs and prices relative to the home market of other exporters or producers.

G. Export Price

   The CARUTP applies the WTO standard.

H. Export Price - Adjustments

   The CARUTP applies the WTO standard.

I. Injury

   The CARUTP applies the WTO standard.

J. Threat of Injury

   The CARUTP applies the WTO standard.

K. Material Retardation

   The CARUTP applies the WTO standard.

L. Cumulation

   The CARUTP applies the WTO standard.

M. De Minimis Provision

1. Antidumping

   The CARUTP applies the WTO standard.

2. Countervailing

N. Margin of Dumping

O. Subsidy Rate

IV. Steps of the Investigation

A. Petition Filing

   Authorized to petition that an investigation be initiated are the representatives of the national production branch of the product injured by the imports regarding which the investigation is requested and the associations of producers that feel they are being adversely affected or threatened by imports allegedly under unfair trade practices. The petition must be presented to the Investigating Authority and the following formal requirements must be met:

         a) Designation of the authority to whom the petition is presented;

         b) Information identifying the accuser.

   In the event legal representation is exercised, the corresponding documentation;

         c) Place for receiving notifications;

         d) An account of the facts and specific indication of the unfair trade practice;

         e) Petition in precise terms in keeping with an account of the facts;

         f) The other requirements established in the Agreements of the WTO;

         g) Place and date of the petition; and

         h) Signature of the petitioner or legal representative of the national production branch or corresponding association.

   Within 30 days after the petition has been received, the Investigating Authority shall proceed to review it to decide whether it meets the requirements set forth in the current Regulations.

   If the petition is found to be incomplete, the Investigating Authority shall inform the party concerned within the next 10 days so that the latter, within 30 days following the notification, may meet the requirements requested.

   At the request of the party concerned, this period may be extended for the same length of time. If this is not done during the period granted, the petition shall be given up and filed, without prejudice to the case's being brought up again.

   If the party concerned completes the information, the Investigating Authority shall proceed within the following 15 days in accordance with Article 11 of these Regulations.

B. Initiation of Investigation

   If the review mentioned in Article 7 preceding leads to enough evidence to justify opening the investigation, the Investigating Authority shall issue a resolution initiating the corresponding investigative procedure.

   The resolution shall contain the following as a minimum:

         a) Identification of the Investigating Authority initiating the procedure, as well as the place and date of the decision;

         b) Indication that the petition and its accompanying documents have been accepted;

         c) Firm name and domicile of the national producer or producers of similar products;

         d) Country or countries of origin or source of the products alleged to be involved in the unfair trade practices;

         e) Reasons and grounds for the decision;

         f) Detailed description of the product that has been or is being imported under alleged unfair trade practices;

         g) Description of the national product similar to the product imported under alleged unfair trade practices;

         h) Time given to those accused and, if appropriate, to the foreign governments indicated, to provide the evidence they may deem suitable, as well as the place where they may present their pleading; and

         i) Determination of the individuals from whom the pertinent information is to be requested by means of the form the Investigating Authority is to provide.

   The parties concerned shall be notified of this decision within 10 days following the date on which it has been made, and they shall have up to 30 days from the day following notification to object.

C. Issuance of Questionnaire

   The Investigating Authority will advise the interested parties that information should be presented which is pertinent to the investigation, with ample opportunity for providing all evidence in writing.

   After deciding to open the investigation, the Investigating Authority will provide a questionnaire to the appropriate interested parties. Article 11 CARUTP.

D. Response to Questionnaire

   The CARUTP applies the WTO standard.

E. Preliminary Determination

1. Injury

   The Investigating Authority shall make a preliminary decision concerning the existence or nonexistence of unfair trade practices, and of injury, the threat of injury, or delay in the establishment of a national production branch.

   This decision shall be set forth in an opinion the Investigating Authority shall issue within 60 days after initiation of the investigation.

2. Antidumping

   The Investigating Authority shall make a preliminary decision concerning the existence or nonexistence of unfair trade practices, and of injury, the threat of injury, or delay in the establishment of a national production branch.

   This decision shall be set forth in an opinion the Investigating Authority shall issue within 60 days after initiation of the investigation. Article 13, CARUTP.

3. Countervailing

   The Investigating Authority shall make a preliminary decision concerning the existence or nonexistence of unfair trade practices, and of injury, the threat of injury, or delay in the establishment of a national production branch.

   This decision shall be set forth in an opinion the Investigating Authority shall issue within 60 days after initiation of the investigation. Article 13, CARUTP.

F. Conduct Verification

1. Antidumping

2. Countervailing

G. Hearings

1. Antidumping

2. Countervailing

H. Briefs

I. Final Determinations

   Within three days after the investigation is ended, the Investigating Authority shall submit the technical study with the pertinent recommendations to the Minister so that the latter, within three working days after its receipt, through an explanatory decision, will declare the investigation ended and state whether it is appropriate to impose a definitive antidumping or countervailing duty and, if so, to revoke the temporary measure adopted.

   The decision imposing a final antidumping or countervailing duty shall be put into effect in accordance with each country's domestic law, and within 10 days after its issuance the parties concerned and SIECA shall be notified thereof so that the latter will make it known to the Executive Committee. Article 18 CARUTP.

J. Maximum Length of Investigation

   The investigation shall end in a period of twelve months from its initiation, but this may be extended for an additional period of up to six months under exceptional circumstances at the initiative of the Investigating Authority or at the request of a concerned party. Article 12, CARUTP.

K. Maximum Duration of Antidumping and Countervailing Duty Orders

   All final antidumping or countervailing duties shall be eliminated no later than five years from the date on which the temporary measure has been imposed or, in its absence, five years from the final decision.

   The period may be extended as an exception when it is substantiated that the conditions causing the measure remain. After a measure has been adopted, it may be reviewed at any time during its implementation. Article 36, CARUTP.

L. Retroactivity

M. Best Information Available (or "Facts Available")

N. Consumers as Interested Parties

O. Public Interest

1. Antidumping

2. Countervailing

P. Undertakings or Commitments

V. Review of Antidumping and Countervailing Duty Determinations

A. Annual Reviews

   Following the adoption of a definitive measures, the same measure can be revised in whatever timeframe. (Article 36, Central American Regulations on Unfair Trade Practices).

B. Duty Refund Review

C. Sunset Review

   All final antidumping and countervailing duty measures must be reviewed in a period of five years from the date of the imposition of the preliminary determination and/or final determination.

   In exceptional circumstances, the measures can be extended without such a review if necessary to maintain the conditions that the measures were originally intended to protect.

D. Changed Circumstances Review

   After a measure has been adopted, it may be reviewed at any time during its implementation. Article 36, CARUTP.

E. New Shipper Review

1. Antidumping

2. Countervailing

3. Judicial, Administrative or Other Review

   Decisions announced by national authorities shall be subject to the appeals provided for by each country's domestic law.

   Appeals provided for in the juridical instruments of Central American integration may be filed against decisions announced by the regional organs (Article 43). In those cases in which the interested parties are producers, exporters or importers in Central America, the Executive Committee can take up the case and put forward a consensus recommendation to the country that has applied the measure (Chapter II, Central American Regulations on Unfair Trade Practices).

F. Procedures for Due Process

1. Notification of Initiation of Investigation

   The parties concerned shall be notified of this decision within 10 days following the date on which it has been made, and they shall have up to 30 days from the day following notification to object. Article 11, CARUTP.

2. Questionnaires (Distribution, Response Time, Extensions, Supplements)

   In the resolution to open an investigation, the investigating authority determines the parties from whom it must require information pertinent to the matter under investigation. (Article 11, Central American Regulation on Unfair Trading Practices).

3. Publication of Antidumping and Countervailing Duty Determinations

   At the same time they are announced, resolutions on the initiation, suspension or conclusion of an investigation, and on the implementation or non-implementation of countervailing or antidumping measures or on changes therein, shall be published one single time at the expense of the party concerned in the Daily Gazette and in a daily newspaper with nationwide circulation in the corresponding country, and when appropriate, in the Daily Gazette of the Central American System of Integration, so that any person concerned with the investigative process instituted may assert the corresponding rights. Article 42, CARUTP.

4. Access to Public Information

5. Access to Confidential Information

6. Decision Making Process (Ministerial Approval, Commission Vote, etc.)

   Each state shall organize a joint commission, which shall include participation by the private sector and shall be coordinated by the Directorate-General of Economic Integration (the body competent for matters pertaining to Central American Integration).

   When the regional industry or, in particular, the industry of a state other than the direct importer of the foreign importer is affected, at the request of the government concerned, a regional procedure shall be handled by SIECA (the Permanent Secretariat of the General Treaty on Central American Integration).

   The Trade Policy Committee will issue a preliminary determination which is passed on to the Central American Tariff and Customs Council who makes the ultimate determination. (See generally Chap. 1)

G. Application and Collection of Duties

1. Suspension of Liquidation

2. Use of Bonds or Cash Deposits

3. Methods of Liquidation

H. Other

1. Anti-Circumvention

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