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Secex regulates the practice of
commercial circumvention.
The
Secretary of International Trade (Secex), of the Ministry of
Development, Industry and Foreign Trade (MDIC), published today in the
Official Gazette a regulation that sets criteria and deadlines for
investigating complaints of imports of products affected by antidumping
measures that to escape the
restrictions imposed by Brazil are manufactured or just re-exported by
third countries. The practice is known as triangulation or circumvention.
The regulation
supplements Resolution No. 63 of the Chamber of International Commerce (CAMEX)
and details the criteria of research competence of the Department of
Trade Remedies (Decom) of the Secex. The regulation defines six months
to closure of investigations, save for exceptional cases, in which it
can mature within nine months.
To order the
opening of such investigation would be required the submission of
sufficient evidence and a detailed description of the alleged practice.
The petitioner will have to inform the exporting country and product (or
its component), producing or exporting companies and the importing or
responsible for industrialization companies. The Decom will have thirty
days to decide whether to open an investigation.
The cases of
triangulation are those who, after application of antidumping measure
against a product of a particular country, the manufacturer or exporter
seek alternative ways to keep the product sales achieved. To evade
controls, these products are shipped to countries that are not affected
by trade restrictions. In these countries, prior to export, the product
undergoes a makeover or is remounted.
To prove this
type of circumvention practice, there must be changes in trade patterns
after the application of trade remedie measures (antidumping). Also it
must be shown that the import price of the product associated with the
volume of imports makes the antidumping measure ineffective. Moreover,
the price of the product exported to Brazil must be less than the normal
value found in research that based the antidumping measure.
Source: Agência Brazil
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