Paraguay

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

   Paraguay through the Decree No. 15286 of 28 of October 1996 implements Law 260/93 that approves the Protocol of Accession of the Republic of Paraguay to the General Agreement on Tariffs and Trade.

   Signed in Geneva, Switzerland, 1 July 1993 and Law 444/94 that ratifies the final act of the Uruguay Round of the GATT, which adopts the provisions contained in the Agreement on Implementation of Article VI of GATT, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Safeguards.

   The purpose of these provisions is to establish the rules and procedures applicable to imports that are dumped or subsidized when they cause damages to national production or when they significantly delay its establishment.

C. Regulations

   Paraguay does not have any regulations currently in force relating to antidumping and countervailing duty measures.

D. Administrative Practice, Handbook or Guide

II. Authorities Responsible for Conducting Investigations

A. Injury

B. Antidumping and Countervailing Duties

   The Ministries of Industry and Commerce, and of the Treasury, are hereby designated the institutions responsible for enforcing the provisional measures, countervailing measures, and anti-dumping duties established in this decree.

   The Ministers of Industry and Commerce, and of the Treasury, will be entrusted with making decisions, provisional and definitive, on the imposition of anti-dumping or countervailing duties, pursuant to the opinion letters of the Commission.

   The Ministry of Industry and Commerce will be in charge of conducting the investigations and carrying out the administrative procedures, pursuant to the provisions and powers provided for in this decree.

   The "Comisión de Defensa Comercial" (hereinafter "the Commission") is hereby created; it will be in charge of making recommendations on the administrative procedures followed and the corresponding measures. The "Comisión de Defensa Comercial" will be made up of one principal representative and one alternative representative from the following ministries: Industry and Commerce, Treasury, Agriculture, Foreign Affairs, and Integration.

   The "Comisión de Defensa Comercial" will be chaired by the representative of the Ministry of Industry and Commerce.

   The principal representatives from the institutions referred to in the previous section will be entrusted with directly appointing a representative to the Commission.

   The appointments will be within two months of the entry into force of this decree.

   Within three months following the entry into force of this provision, the Commission shall adopt its by-laws; the Guides, setting forth the requirements and the documentation that should be included with the application to initiate the investigation; and the respective forms and/or questionnaires that should be completed by the interested parties.

III. Methodologies/Definitions

A. Like Product

   A product that is identical, i.e. equal in all aspects to the product in question, or when such a product does not exist, another product which, though not equal in all respects, has very similar characteristics.

B. Domestic Producers

   Domestic producers as a whole of the like products or those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products, except that:

         
• When the domestic producers are related to the exporters or importers or are themselves importers of the allegedly dumped product, the term "domestic industry" may be interpreted as referring to the rest of the producers;
           
• In exceptional circumstances, Paraguayan territory may, for the production in question, be divided into two or more competitive markets and the producers within each market may be regarded as a separate industry if:

               (1) the producers within such market sell all or almost all of their production of the product in question in that market, and

               (2) the demand in that market is not to any substantial degree supplied by producers of the production in question located elsewhere in the territory.

   In such circumstances, injury may be found to exist even where a major portion of the total domestic industry is not injured, provided there is a concentration of dumped imports into such an isolated market and provided further that the dumped imports are causing injury to the producers of all or almost all of the production within such market.

C. Standing

   An application shall be considered to have been made by or on behalf of the principal part of the domestic industry when it is supported by domestic producers whose combined production accounts for over 50% (fifty per cent) of the total production of the like product produced by the segment of the domestic industry that supports or opposes the application. Nevertheless, no investigation will be initiated if the producers expressly supporting the application account for less than 25% of total production of the like product produced by the domestic industry.

D. Polling

E. Normal Value

   For the purposes of this provision, a product will be considered as being dumped, i.e., introduced into the Paraguayan market at less than its normal value, if the export price when exported to the Paraguayan market is less than the comparable price, in the ordinary course of trade, for the like product when manufactured for consumption in the exporting country.

   When there are no sales of the like product in the ordinary course of trade in the domestic market of the country of origin or export, or when, because of the particular market situation or low sales volume in the country of origin or export, such sales do not allow for adequate comparison of prices, the Ministry of Industry and Commerce shall determine the normal value by making comparisons with:

         
• the export price of a like product to a third country in the ordinary course of trade;
           
• the cost of production in the country of origin, plus a reasonable sum for administrative expenses, sales, and general expenses, as well as for profit, pursuant to Article 2.2 of the Agreement on Implementation of Article VI of GATT 1994.

   A sufficient amount shall be considered, for determining the normal value of sales of the like product earmarked for consumption in the domestic market of the exporting country if such sales account for at least 5% of sales of the product in question to the importing country, unless in the view of the Ministry of Industry and Commerce it is shown that, although it is a lesser proportion, it is of sufficient magnitude to allow for an adequate comparison.

   The sales of the like product in the domestic market of the exporting country or the sales to a third country at prices below unit cost of production (fixed or variable), plus administrative, sales, and general expenses, may be considered not realized in the ordinary course of trade for reasons of price and may be ignored in calculating the normal value only if the authorities determine that such sales have been made

         (1) during a period that will normally be one year, and never less than six months,

         (2) in a significant volume, i.e., that accounts for at least 20% of sales in operations considered for calculating the normal value, and

         (3) at prices that do not allow for recovering costs within a reasonable period.

   If the prices below unit cost when sold are higher than the weighted average unit costs for the period under investigation, it is considered that these prices make it possible to recover the costs within a reasonable period.

F. Calculation of Cost of Production

G. Export Price

   Export price shall be understood to mean the price actually paid or to be paid for the product sold for export to the Paraguayan market.

   When there is no export price, or when said price is not reliable since there is a relationship or association between the exporter and the importer, the export price may be reconstructed based on the price at which the imported products are resold for the first time to an independent buyer. If the products are not resold to an independent buyer or are not in the same condition in which they were imported, the price shall be calculated on a reasonable basis to be determined by the Ministry of Industry and Commerce.

   When comparing prices, the differences which affect price comparability, including differences in conditions and terms of sale, taxation, levels of trade, quantities, physical characteristics, and any other differences which are also demonstrated to affect price comparability shall be taken into account, with due regard to the particular circumstances in each case. In cases that require reconstruction of the export price pursuant to Article 4.5, allowances should also be made for costs, including duties and taxes incurred between import and resale, and for profits.

H. Export Price - Adjustments

   The comparison between the export price and the normal value shall be done equitably, and at the same level of trade, normally at the factory gate, based on sales made on dates as recent as possible.

   This comparison will normally be based on a comparison between a weighted average of the export prices of all comparable export transactions or by making a comparison between the normal value and the export prices, on a transaction-by-transaction basis.

   If in the view of the Ministry of Industry and Commerce there is a pattern of widely disparate export prices and normal values among different buyers, regions, or periods, the comparison may be between a normal value established on the basis of the weighted average and the prices of the individual export transactions.

   Where products are not imported directly from the country of origin but are exported to the country of import from an intermediate country, the price at which the products are sold from the country of export to Paraguay shall normally be compared with the comparable price in the country of export. However, comparison may be made with the price in the country of origin, if, for example, the products are merely transshipped through the country of export, or such products are not produced in the country of export, or there is no comparable price for them in the country of export.

   In cases of imports from countries with centrally-planned economies, the normal value of the like product shall be determined based upon the value at which a like product is sold for domestic consumption, during normal commercial operations, in a third country with a market economy, or in its absence, for export or based upon another criterion, that the Ministry of Industry and Commerce deems pertinent according to the circumstances.

   Nevertheless, the selection of the country should not openly entail disadvantages for the producer or exporter from the country of origin.

I. Injury

   Major injury to the domestic industry, a threat of major damage to the domestic industry, or a significant delay in the establishment of the domestic industry.

   A determination of injury, threat of injury, or significant delay in establishing the domestic industry, shall be based on positive evidence and involve an objective examination of both of the following factors:

         (a) the volume of the dumped or subsidized imports and the effect of these on the prices of like products in the Paraguayan market, and

         (b) the consequent impact of such imports on domestic producers of like products.

   With regard to the provision at Article 6.1(a), the investigating authorities shall consider whether there has been a significant increase in imports, either in absolute terms or relative to production or consumption in the country. To determine the effect of such an increase on prices, the investigating authorities shall consider whether there has been a significant price undercutting and whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree.

   The volume of dumped or subsidized imports shall be considered insignificant if it can be established that the goods from a given country account for less than 3% (three per cent) of the imports of the like product, except when those countries that individually account for less than 3% of the imports of the like product, when added up, account together for more than 7% (seven per cent) of these imports.

   The examination of the impact of dumped and subsidized imports on the domestic industry concerned shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the industry, including actual and potential decline in sales, profits, output, market share, productivity, return on investments, or utilization of capacity factors affecting domestic prices; the magnitude of the margin of dumping or the amount of the subsidy; actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital or investments.

   This list is not exhaustive, nor shall any of these factors in isolation or several of them taken together necessarily suffice to justify a decision.

J. Threat of Injury

   A determination of a threat of injury shall be based on facts and not merely on allegation, conjecture or remote possibilities and shall include an examination of the following factors:

         (a) a significant rate of increase of dumped or subsidized imports into the Paraguayan market indicating the likelihood of substantially increased importations;

         (b) sufficient freely disposable or an imminent, substantial increase in capacity of the exporter indicating the likelihood of substantially increased exports, taking into account the availability of other export markets to absorb any additional exports;

         (c) whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports; and

         (d) inventories of the product being investigated.

   None of these factors by itself can necessarily justify a decision, but the totality of the factors considered must lead to the conclusion that further dumped or subsidized exports are imminent and that, unless protective action is taken, material injury would occur.

K. Material Retardation

L. Cumulation

   The volume and effects of imports from or originating from more than one country subject to investigation may be accumulated, so as to evaluate the injury to the domestic industry, so long as the margin of dumping and the amount of the subsidy are not de minimis, and the volume of imports is not insignificant, in the terms of Articles 4.10, 5.4, and 6.3.

M. De Minimis Provision

1. Antidumping

2. Countervailing

N. Margin of Dumping

   The comparison between the export price and the normal value shall be done equitably, and at the same level of trade, normally at the factory gate, based on sales made on dates as recent as possible.

   This comparison will normally be based on a comparison between a weighted average of the export prices of all comparable export transactions or by making a comparison between the normal value and the export prices, on a transaction-by-transaction basis.

   If in the view of the Ministry of Industry and Commerce there is a pattern of widely disparate export prices and normal values among different buyers, regions, or periods, the comparison may be between a normal value established on the basis of the weighted average and the prices of the individual export transactions.

   The extent to which the export price is lower than the normal value according to the provisions of Article 8 shall be considered the margin of dumping. The margin of dumping shall be considered to be de minimis when it is less than 2% (two per cent) of the export price.

O. Subsidy Rate

IV. Steps of the Investigation

A. Petition Filing

   The application shall contain at least the following:

         (a) identity of the applicant and a description, by applicant, of the volume and value of the domestic production of the like product. Where a written application is made on behalf of the domestic industry, the application shall identify the industry on behalf of which the application is made by a list of all known domestic producers of the like product (or associations of domestic producers of the like product) and, to the extent possible, a description of the volume and value of production of the like product accounted for by such producers;

         (b) a detailed description of the allegedly dumped or subsidized product;

         (c) volume and value of the domestic production of like products;

         (d) country of origin and export;

         (e) in the case of dumped imports, the export price and the prices at which the product is sold in the ordinary course of trade for consumption in the domestic market of the country of origin or export (or, where appropriate, the prices at which the product from the country or countries of origin or export to a third country is sold, or on the reconstructed value of the product);

         (f) in the case of subsidized imports, a detailed description of the type and amount of the subsidy, indicating the granting authority or agency and the applicable provision;

         (g) information on the evolution in the volume of imports, and their effects on prices of like products in the Paraguayan market;

         (h) determination of the injury caused by the dumped or subsidized imports, pursuant to the provisions of Articles 6 and 7 of this Decree;

         (i) offer of the relevant evidence that shows the existence of dumped or subsidized products and injury caused to the domestic industry, as well as the causal relationship between them;

         (j) names and addresses of the importers and exporters, if they are known. Once the application is received to begin an investigation, and without prejudice to the provision of Article 10 of this Decree, the Ministry of Industry and Commerce shall examine, within the following five working days, whether it meets the requirements referred to in Article 8.3 of this Decree.

   If the application does not meet the requirements which, in the view of the Ministry of Industry and Commerce, it is necessary to request additional information to be able to evaluate the application, the applicant will be so warned so that it might make the relevant corrections or contribute the information required, under reserve that if it is not done within the next 30 working days, the application shall be filed.

   If in the view of the Ministry of Industry and Commerce the application meets the requirements of Article 8.3 of this Decree, and no additional information is needed, it shall be evaluated within the time frame provided for at Article 12 of this Decree.

B. Initiation of Investigation

   Except as provided for in paragraph 8.5 of this Article, an investigation to determine the existence, degree and effect of any alleged dumping shall be initiated upon a written application to the Ministry of Industry and Commerce by or on behalf of the domestic industry.

   The domestic producers who represent the main part of the domestic industry deemed injured by dumped or subsidized imports of like products may apply to the Ministry of Industry and Commerce to request an investigation be initiated.

   An application shall be submitted according to the prerequisites established in the Guides prepared by the Ministry of Industry and Commerce and approved by the Commission, and shall contain the documentation required in such Guides and in the questionnaire that will be made available for this purpose. The application shall include evidence of

         (a) dumping,

         (b) injury, and

         (c) a causal link between the dumped and subsidized imports and the alleged injury.

   If in special circumstances the Ministry of Industry and Commerce decides to initiate an investigation without having received a written application by or on behalf of the domestic industry for the initiation of such investigation, it shall proceed only if it has sufficient evidence of dumping, injury, and a causal link, as described in paragraphs 8.3 and 8.4 of this Decree, to justify the initiation of an investigation.

   When an application is made to initiate an investigation the purpose of which is to look into imports from any of the member countries of MERCOSUR, and after verification that the application meets the requirements established in this Decree, and that it is duly justified, the Government shall give notice to the exporting country, facilitating the mutual cognizance of the facts and consultations aimed at achieving a mutually satisfactory solution of the matter.

   When, in exceptional circumstances, it is decided to initiate an investigation without having received a written application submitted by the domestic industry or producers, the Ministry of Industry and Commerce only acts when there is sufficient evidence of dumping, of injury, or of threat to injury and of the causal nexus, as indicated in this Decree, which justifies the initiation of an investigation.

C. Issuance of Questionnaire

   Within the seven working days following the date of publication of the resolution that orders that the investigation be opened, the Ministry of Industry and Commerce shall give notice to the parties of said resolution, remitting together a questionnaire and the forms designed for that purpose to request information on the case from the interested parties that are appropriate, including the authorities of the exporting country, if appropriate.

   Notice of them shall be given in the offices of the diplomatic or consular representation in Paraguay.

   If the number of exporters in question is very high, the notice shall be sent only to the Association of the exporting member or the competent trade association, as the case may be.

D. Response to Questionnaire

   In the notice referred to in this Article the parties will be given a term of 40 calendar days counted from the date of receipt of the notice and the questionnaire, to answer the questionnaire and the forms and to submit their proof and evidence, under reserve that if it is not done in the time period granted, the Ministry of Industry and Commerce may make a decision based on the best available information.

   In special circumstances, if there is a duly justified application from the interested persons and when in the view of the Ministry of Industry and Commerce there are sufficient reasons that so justify, the 40-day period may be extended for up to an additional 15 calendar days.

E. Preliminary Determination

1. Injury

   Within a period not to exceed 90 calendar days from the date the investigation is initiated, the Ministry of Industry and Commerce may recommend to the Ministers of Industry and Commerce, and of the Treasury, that provisional measures be imposed if, according to their conclusions, it is necessary to prevent additional injuries to the domestic industry during the course of the investigation.

   The Ministers of Industry and Commerce and of the Treasury shall decide within the next 15 calendar days whether to impose provisional measures by a justified bi-ministerial resolution.

   Said resolution shall be reported to the interested parties and published in the Official Gazette.

   If in the view of the Ministry of Industry and Commerce circumstances so merit, the 90-day period referred in the previous section may be extended for up to an additional 30 calendar days.

   The imposition of provisional measures may only be ordered if a positive preliminary determination is first reached that the increase of imports or existence of imports that are dumped or subsidized have caused injury to the national production in the terms established in this Decree. In no case may provisional measures be imposed before 60 calendar days have elapsed, counted from the publication by which the investigation is initiated.

   The provisional measures shall consist of provisional anti-dumping or countervailing duties expressed as a percentage ad valorem or calculated from a baseline price. Based on the determination of the Ministry of Industry and Commerce, and of the Treasury, the demand for the provisional duty may be suspended until the final determination is made, in which case the importer should provide a guarantee by bond or bank guarantee to pay the duty in full.

   The provisional measure may not exceed the margin of dumping provisionally estimated.

   Its enforcement may not exceed four calendar months.

   Nonetheless, in the case of investigations into dumping, if exporters who represent a significant part of the trade in the product in question so request, that time period may be six or nine months when examining enforcement of a duty that is less in extent than the margin of dumping, to eliminate the injury.

2. Antidumping

3. Countervailing

F. Conduct Verification

1. Antidumping

   The evidence and information submitted by each of the interested parties shall be made known to each of the parties involved, except for that which has been consigned as confidential information, which will be treated as such by the Ministry of Industry and Commerce. Nonetheless, in this case, the party that submits such information must provide non-confidential summaries of it or, in exceptional circumstances when this is not possible, set forth the reasons why such summaries cannot be provided.

   When in the view of the Ministry of Industry and Commerce the application for certain information to be considered confidential is not justified, and the party that has provided it does not wish to authorize its disclosure in general or summarized terms, unless it is shown convincingly, from an appropriate source, that the information is correct.

   The Ministry of Industry and Commerce, when it deems it necessary, may undertake investigations and produce the pertinent evidence in the territory of the exporting country so long as the exporting countries have so authorized, the authorities of the respective Government have been notified, and they have not presented any objection.

2. Countervailing

G. Hearings

1. Antidumping

   In the case of an investigation of subsidized imports, the Ministry of Industry and Commerce, within five working days after receiving an application, shall give the authorities of those countries whose products will be investigated, the opportunity, within a period not to exceed one month, to hold meetings of the Paraguayan authorities with the authorities of the country of origin or the exporting country to elucidate the facts of the case and arrive at a mutually satisfactory solution. The invitation to hold consultations shall not constitute an obstacle to the initiation of the investigation.

2. Countervailing

H. Briefs

Continue with Final Determinations