Argentina Regulations

Agreement Concerning the Application of Article VI of the General Agreement on Tariffs and Trade 1994 of the WTO (Antidumping Agreement).
Law No. 24,425 , by which the Anti-Dumping Agreement is approved.
Decree No. 1393/2008 , which regulates Law 24,425.
Resolution ex – SICyPyME Nº 293 / 2008- Annex I 
National Law of Administrative Procedures No. 19,549 , of supplementary application.
Regulation of Administrative Procedures, Decree No. 1759/72 TO 1991, of supplementary application.
Decree No. 766/1994

It is considered that dumping exists or that a product is dumped when its export price is lower than the comparable (normal value) price of the same or a like product on the domestic market of the country of origin.

The reasons most commonly adduced to sell under these conditions are:

  • International price discrimination, ie the fixing of different prices according to decisions of actions in different markets;
  • Price promotion policies, in order to win a market through the incentive for consumers to adopt the product;
  • Predatory pricing policies, ie the practice of selling at a loss for a period of time in order to displace competitors from the market;

Damage and Causality

The mere existence of dumping is not sufficient to be able to apply measures, but requires that injury to domestic production is determined and that it is caused by the dumped imports.

Damage to a domestic production is understood to mean either existing significant injury or a threat of actual and imminent serious injury, as well as a noticeable delay in the creation of a branch of domestic production. The determination of injury must be based on positive evidence and not on allegations, conjectures or remote possibilities. To do this, an objective examination of:

  • The volume of dumped imports and their impact on domestic prices of the like product, and
  • The consequent impact of these imports on local producers of the like product.

Measures that can be taken to counteract the effects of this unfair practice are anti-dumpingduties, which may take the form of specific duties, ad valorem duties or duties consisting of minimum FOB export values.

Recipients of protection against unfair competition

Requests for investigations of dumped imports must be made by or on behalf of the domestic industry alleging a situation of injury caused by the imports concerned. The terms domestic production, domestic production, domestic industry, domestic industry and domestic industry are considered indistinct to refer to all domestic producers of like products or to those whose collective output represents a significant proportion of domestic production.

In this regard, the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 of the World Trade Organization (WTO), approved by Law 24,425 , states that the application is considered “made by the branch national production or on behalf of it “when it is supported by domestic producers whose joint production accounts for more than 50% of the total production of the like product produced by that part of the domestic industry which manifests its support or opposition to it request. However, an investigation may not be initiated where domestic producers expressly supporting the application represent less than 25% of the total production of the like product produced by the domestic industry.

The procedure for determining the damage is regulated, ensuring timely that the interested parties accredited as such in the proceedings have full opportunity to defend their interests. Domestic producers of the like product, producer associations, exporters, foreign producers, importers of the product under consideration, associations of exporters, foreign producers and importers and the government of the exporting Member are considered as interested parties. exhaustive.

What is meant by dumping?

Dumping is considered to exist where the FOB value of exports is lower than the normal value of the same product on the domestic market of the country of origin.

Dumping should not be confused with other practices that may arise in foreign trade, such as those which, by way of example, are listed below:

  • Sub-invoicing: when the value declared in customs is lower than that actually paid by the importer.
  • Income for incorrect tariff positions: when in order to tax minor tariffs or to avoid some type of trade regulation, the merchandise is declared by another tariff heading.
  • Incorrect origin: when in order to tax minor tariffs or avoid some type of trade regulation, the merchandise is declared as originating in a country other than the one in which it was produced.
  • Issues related to intellectual property rights in patents, designs, licenses, trademarks, etc.
  • Labor or social conditions in a foreign country that make their products sold at very low prices in both their internal and external markets.
  • Issues related to quality, safety standards, health, labeling information, etc. in imported products, to facilitate their competition in the Argentine market.
  • Issues arising from actions in the internal market of companies or national firms tending to limit competition, abuse of dominant positions, breach of contractual conditions, etc.

Is it sufficient to prove the existence of dumping in imports to apply anti-dumping duties?

No, it is not enough. Measures can be applied only in cases where injury to the domestic industry is ascertained and the causal link between injury and dumping.

What is meant by damage to the domestic industry?

An existing major damage; a threat of real and imminent harm; or a noticeable delay in setting up a domestic industry.

What is the period of data collection for damage determination?

Typically, the data collection period for the injury determination will be three full years and available months of the current year. Notwithstanding this, the Commission may request information on a longer or shorter period.

How long is the investigation?

The investigation should normally be completed within ten (10) months following the date of its initiation. It should be noted that, for reasons of technical complexity, this time limit can be extended in accordance with the maximum time limits established in the Anti-Dumping Agreement.

What measures can be taken to counteract the effects of dumping?

Anti-dumping duties.

What is the difference between the definitive anti-dumping duties and the definitive countervailing duties?
The definitive anti-dumping duties seek to neutralize the effects of dumping while the definitive countervailing duties are intended to neutralize the subsidies.

What is the legal framework?

The procedures leading to the application of this type of measures are framed in the WTO Agreement on the Application of Article VI of the General Agreement on Tariffs and Trade of 1994 (Antidumping Agreement), incorporated into Argentine legislation by Law 24.425 , its regulations resulting from Decree No. 1393/2008 and Resolution ex SICyPyME No. 293/2008.

What are the Application Authorities?

  • Ministry of Production.
  • Commerce secretary.
  • Undersecretariat of Foreign Trade.
  • National commission of foreign trade.

How can a domestic producer be considered to be damaged by dumped imports?

domestic producers who are affected by dumped imports may contact the unfair competition management (dcd) or the national foreign trade commission (cnce) , both of the undersecretary of foreign trade (ssce) , which will provide advice on the requirements for submitting research applications.

Domestic producers who are affected by dumped imports may contact the DCD or the SSC CNCE Commission, which will advise on the requirements for submitting research applications.

The application can also be made by Chambers, Federations and / or Associations.

Contact to contact:

Direction of Unfair Competition
Diag. Julio A. Roca 651, 6th floor, (C1067ABN) Autonomous City of Buenos Aires, (011) 4349-3949 / 3948.

National Commission for Foreign Trade
Avda. Paseo Colón 275, piso 7mo., (C1063ACC) Autonomous City of Buenos Aires, (011) 4348-1738 / 1720/1710/1784.

Advisory Meetings

  • They must be made prior to the formal presentation of the application and as a requirement for it to be admitted.
  • In this instance, the technicians of the CNCE and the DCD:
    a.- Explain the necessary requirements to carry out the investigation, the information required for the purpose and the development of the procedure.
    b.- collaborate in the search for the necessary information for determining the formal criteria provided for by law for the opening of the investigation,
    c.- geared to those interested in making submission forms,
    D.- They will facilitate the access of companies to domestic market data of the country of origin or export required for the determination of normal value through the Economic and Trade Sections under the Ministry of Foreign Affairs, International Trade and Worship.
  • The companies must submit drafts of the forms provided for in Annex I of Resolution ExSICyPyME N ° 293/2008 , which establishes the requirements for the submission of applications regarding the initiation of a dumping investigation. Access all files of Annex I of Resolution ExSICyPyME N ° 293/2008
  • In each consultation, a report shall be prepared stating the observations of each agency to the draft submitted.
  • As many assessments will be carried out as necessary to correct the observations made by the corresponding technical teams.
  • When the draft does not submit observations, an act will be signed in which this circumstance is made known and, from the same, the petitioner may make the formal presentation of the request, beginning the computation of the deadlines established in Decree No. 1393 2008
  • The company itself can carry out the procedure, it is not requisite to have a legal patronage.
  • The assistance and collaboration will continue throughout the investigation.

Dumping investigation requests must be made by or on behalf of the national industry, justifying the representativeness invoked, if possible, with the certification of the Association, Chamber, Federation or business entity that represents it, accrediting legal status, and presenting sufficient evidence of dumping and injury, as well as the causal link between the two.

Request

Once the form does not present observations by the technical teams, it should be presented at the General Ticket Office, located at Diag. Julio A. Roca 651, Ground Floor, Sector 6, in original and copy, attaching the corresponding magnetic support.

In the event that a company considers that part of the information requested is strategic and that its disclosure may cause prejudice, it may request the confidential treatment of the same, by correctly identifying the request with the legend “confidential” in the angle top right of each page, the proper justification of such request and accompanying a non-confidential summary of the information, so that the authorities resolve on said treatment. The confidential information will not be added to the file and only the technicians assigned to the case and the Directory of the CNCE will have access to it. See more Resolution N ° 02/1998 and Resolution N ° 54/2012

For more detailed information regarding the information that could be of this nature, as well as the respective public summaries, it is suggested to consult “The confidentiality guide”.

Upon receipt of the request, the Ticket Desk sends the original presentation and its magnetic support to the DCD and the certified copy with its corresponding magnetic support to the CNCE, within the non-extendable term of two (2) business days.

Once the request has been received, the CNCE and the DCD have five (5) days to let them know if there are errors or omissions in the presentation, in order that the petitioner remedy any deficiencies that may exist.

Failure to record the errors or omissions or to correct them, the CNCE shall inform the SSCE of this circumstance as well as the existence of a similar domestic product and the representativeness of the applicant within ten (10) days.

If the Commission’s report determines that the aforementioned measures have not been complied with, the SSCE will inform the applicant and this Commission of the rejection of the request and the filing of the proceedings. Otherwise, the SSCE will inform the admission of the request to the CNCE and the petitioner within two (2) working days.

If the application is accepted, the DCD has ten (10) days to analyze the evidence of dumping and communicate its conclusion to the Commission. Having received the previous report, the Commission has ten (10) days to make its determination on the injury to the domestic industry and the causal link between it and the dumping, which is sent to the SSCE, who, within the three (3) business days will raise its recommendation regarding the opening of the investigation to the Ministry of Commerce (SC), which must resolve whether or not to open the investigation within five (5) days. The opening resolution is published in the Official Gazette, while if it is declared unfairness of such opening, the SC will notify such decision to the applicant.

Investigation

Once the opening of the investigation is resolved, CNCE and DCD send questionnaires to producers, exporters and importers within a maximum period of ten (10) days, whose reply must be sent by interested parties within thirty (30) days. 30 days. Once the answers to the aforementioned Questionnaires have been received, the CNCE and DCD may request the corresponding clarifications within seven (7) days thereafter, giving a period of up to ten (10) days to submit the requested responses.

At the latest one hundred (100) days from the opening, the DCD issues a preliminary determination of dumping, with the evidence available at this stage. If such a determination is positive, it sends a copy of it to the CNCE, which has one hundred ten (110) days from the opening of the proceeding, to make a preliminary determination of injury to the domestic industry together with the report of causal link between it and dumping, and should send its findings to the SSCE.

The SSCE has five (5) days to increase its recommendation to apply or not provisional duties, taking into consideration the other circumstances related to the general policy of foreign trade and the public interest. The Secretariat shall, within ten (10) days, submit its recommendation to the Minister, who shall decide on the appropriateness of the adoption of provisional measures within a period of twenty (20) days.

Provisional measures which may take the form of a guarantee shall be applied for a maximum period of four (4) months, which may be extended under certain conditions imposed by the Anti-Dumping Agreement.

Once the respective Preliminary Determinations have been issued, the DCD and CNCE will notify them, giving a period of ten (10) working days for the parties to make their offerings of evidence, which will be resolved by both agencies within ten (10) business days after the expiration of the previous term. The admitted test may be produced up to eighty (80) days prior to the final determination of damage and causality.

Members of the technical team of the CNCE can carry out on-site verifications at the plants and offices of the companies in order to corroborate the accuracy of the information provided in the questionnaires. For this reason, it is recommended to keep the working papers and supporting documentation of the information provided (invoices, production forms, inventory books, etc.).

If it is considered to be conducive to the conduct of the investigation, the CNCE may convene a hearing or meeting of parties, in order to gather additional information and / or settle controversial issues.

After the conclusion of the probationary period, and prior to the arrival of a final determination, the DCD and the CNCE will report on the essential facts that serve as the basis for the decision to apply or not definitive measures, which are made available to interested parties for a period of ten (10) business days in order that they may make their allegations.

Finally, within two hundred and twenty (220) days, the CNCD, within two hundred and fifty (250) days, both counted from the opening of the investigation, will make a final determination of dumping, and a final determination of injury and of causal link with dumping, respectively. The CNCE refers its findings to the SSCE, which will, in a period of ten (10) days, submit to the SC a recommendation report on whether or not to apply definitive anti-dumping duties, taking into account the other circumstances related to the general foreign trade policy and the public interest. The SC, within a period of ten (10) days, will be issued on the provenance of applying a final measure, raising the matter to the consideration of the Minister, who must resolve within twenty (20) days,

The investigation should normally be completed within ten (10) months following the date of its initiation. It should be noted that, for reasons of technical complexity, this time limit can be extended in accordance with the maximum time limits established in the Anti-Dumping Agreement.

Definitive measures

Upon completion of the investigation, if the DCD determines the existence of dumping and the CNCE determines the existence of injury to the branch of domestic production and a causal relationship between both, the Minister of Production may provide for the application of anti-dumping duties.
Such rights may have a maximum duration of five (5) years, which may be considered. Likewise, retroactive rights may be applied up to ninety (90) days before the date on which provisional measures have been applied, provided that the requirements expressly established for this purpose are fulfilled, emphasizing that no rights can be applied before of the date on which the investigation is opened.

It is important to clarify that while the determinations of the CNCE and the DCD form the technical basis for the application of an anti-dumping measure, positive determinations are not binding since the other circumstances surrounding the adoption of the decision should be considered. general policy of foreign trade and the public interest.

Commitments

The proceeding may be suspended or terminated without imposition of provisional measures or definitive duties if the exporter reports that it voluntarily undertakes satisfactory undertakings to revise its prices or to terminate exports at dumped prices, so that the authorities are satisfied that the injurious effect of dumping is eliminated.

Voluntary commitments must be submitted after both the DCD and the CNCE have formulated the corresponding preliminary determinations, and these are positive, before the SSCE, who will send it to the CNCE in two (2) business days.

The DCD and the CNCE can request clarifications within a period of five (5) days from the receipt of said commitment, which must be answered within ten (10) days. As of the expiration of such term, the DCD and the CNCE have thirty (30) days to produce the reports within the scope of their competencies.

The SSCE, once received the report of the CNCE raises its report on the commitment to the SC, taking into account the other circumstances related to the general policy of foreign trade and the public interest, which has ten (10) days to recommend whether or not to accept the compromise submitted. Upon receipt of such recommendation, the Minister must be issued within fifteen (15) days.
Even if a compromise is accepted, the investigation may continue until the final instance, stating that if a negative determination of dumping or injury is made, the commitment is automatically extinguished, except when such negative determination is based on the existence of the commitment.