Compendium of Antidumping and Countervailing Duty Laws
in the Western Hemisphere
WTO Standard: None in the AD or SCM Agreements. There is a Ministerial Declaration which states: "Ministers, Noting that while the problem of circumvention of anti-dumping duty measures formed part of the negotiations which preceded the Agreement on Implementation of Article VI of GATT 1994, negotiators were unable to agree on a specific text, Mindful of the desirability of the applicability of uniform rules in this area as soon as possible, Decide to refer this matter to the Committee on Anti-Dumping Practices established under that Agreement for resolution."
The competent implementing authority may include within the scope of the definitive antidumping or countervailing duty measure in force, imported parts and components intended for assembly or finishing in the Argentine Republic when it is established that:
(a) the product assembled or finished from such parts or components is a like product to the one subject to the definitive antidumping or countervailing duty;
(b) assembly or finishing in the country importing the product referred to in paragraph (a) above is carried out by a party related to an exporter or producer whose exports of the like product to the Argentine Republic are subject to a definitive duty or which acts on behalf of such exporter or producer;
(c) parts or components were obtained in the country of the exporter or producer subject to a definitive duty from suppliers in the exporting country who traditionally have supplied parts or components to such exporter or producer, or from a third party supplying parts or components on behalf of such exporter;
(d) assembly or finishing operations in the Argentine Republic have undergone substantial growth and imports of parts or components for such operations have increased substantially since the initiation of the investigation which gave rise to the imposition of the definitive duty;
(e) the total cost of the parts or components referred to in subparagraph (c) represents a substantial part of the total cost of the parts or components used in the assembly or finishing operations.
The competent implementing authority may impose preventive antidumping or countervailing duties on parts or components imported for use in assembly or finishing operations when it considers that there is sufficient evidence of the criteria outlined in paragraphs (a) through (e) above.
The competent implementing authority may establish a definitive antidumping or countervailing duty when all the criteria set forth above are met.
The definitive antidumping or countervailing duty that may be imposed may not be higher than the definitive antidumping or countervailing duty in force on imports of the finished product subject to investigation. (Decree No. 2121/94, Art. 66).
The Special Import Measures Act (SIMA) and SIMA regulations do not contain explicit anti-circumvention provisions.
Revenue Canada may, however, initiate a new investigation in respect of the goods exported from a third country or exported in a different form to Canada.
The issue of circumvention is not addressed in Chilean law.
The scope of a definitive duty in force on an imported product may extend to parts or components for assembly or finishing operations in Colombia where it is established that:
(1) the product assembled or finished with such parts or components in Colombia is the like product to that subject to definitive duties;
(2) the assembling or finishing in Colombia is carried out by a party who is related to the exporter or producer whose exports are subject to definitive duties or who acts on their behalf;
(3) the parts or components have been obtained in the country subject to the duty in force, from the exporter or producer to whom the definitive duty is applied, from suppliers of the exporters or the producer or from a party in the exporting country who acts as supplier on behalf of the exporter or producer;
(5) the total cost of the parts or components is equal to or exceeds 70 percent of the total cost of all the parts or the components used in the assembly or finishing of a like product;
(6) when there is evidence of the dumping of the product produced with such parts, on the basis of the comparison of the price of the product assembled or finished in Columbia and the normal value previously established for a like product when subject to the initial definitive antidumping duty;
(7) there is evidence that it is necessary to include such parts within the scope of application of resolutions to impose definitive duties in order to avoid injury to the domestic industry for a like product, the product subject to definitive duty.
The authorities may impose provisional duties on parts or components up to the amount of the definitive duties in force on the finished products when there is sufficient evidence of occurrences under Subparagraphs 1 through 6 and final duties when there exists sufficient evidence of occurrences under Subparagraphs 1 through 7. (Decree 299, Chapter 6, Art. 24).
The topic of evasion does not appear in Salvadoran law.
Article 71 of the Law provides that, when it is intended to avoid the payment of countervailing duties by introducing into national territory parts and components for the assembly of goods subject to temporary or final duties, the importation of such parts and components must be subject to payment of the duty in question.
The same treatment shall apply when the parts and components are assembled in a third country whose end product is introduced into national territory, or when goods are exported with relatively minor physical differences with respect to those subject to countervailing duties with the purpose of avoiding the duties on such goods.
The procedure for determining measures of this kind is provided for in Article 96 of the Regulations.
Trinidad and Tobago
U.S. law provides for the prevention of circumvention of antidumping and countervailing duty orders.
There are special provisions for merchandise completed or assembled in the U.S. or in a third country, for minor alterations of subject merchandise, and for later-developed merchandise.
The provisions focus on whether:
(1) minor or insignificant assembly or completion is occurring in the U.S. (or a third country);
(2) the value of the parts imported into the U.S. (or a third country) from the country subject to the order is a significant proportion of the total value of the finished product; and,
(3) whether minor alterations of subject merchandise or later- developed merchandise constitute merchandise which has essentially the same characteristics as subject merchandise.
The ITC must be consulted before Commerce makes a determination under most of these provisions.
Article 18.1, Subsidies Agreement, op.cit.