What is the process in determining if there is a need to impose a countervailing duty?

Countervailing duty

Annex 1A of the Agreement establishing the WTO (“WTO Agreement”) contains, inter alia, the General Agreement on Tariffs and Trade 1994 (GATT 1994), an Agreement on Agriculture (“Agreement on Agriculture”), an Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 and an Agreement on Subsidies and Countervailing Measures (“Subsidies Agreement”).

In order to ensure proper and transparent application of the rules set out in the Subsidies Agreement, the terms of the Subsidies Agreement should be reflected in Union legislation to the extent possible.

In addition, it is desirable to explain in detail when a subsidy is to be deemed to exist, according to which principles it is to be countervailable (in particular where the subsidy has been specifically granted) and according to which criteria the amount of a subsidy is to be calculated.

For the calculation of the benefit to the recipient, in the absence of a benchmark in the market of the country concerned, this value should be determined by adjusting the terms and conditions prevailing in the country concerned to factors such as actual prices or costs in that country. If this cannot be done because, inter alia, such prices or costs do not exist or are unreliable, then the appropriate benchmark value should be determined by resorting to the conditions and modalities prevailing in other markets.

Anti-dumping duty

Harmonized Alphanumeric Carrier Code, necessary for its declaration in the corresponding pedimentos, allows land transportation companies to register their general data, as well as the vehicles they have and the names of the drivers of such vehicles.

The Program for the Promotion of the Manufacturing, Maquiladora and Export Services Industry (IMMEX Decree) is an instrument that allows the temporary import of goods necessary to be used in an industrial or service process for the manufacturing, transformation or repair of goods of foreign origin temporarily imported for export or for the rendering of export services, without paying the general import tax, the value added tax and, if applicable, the countervailing duties published in 1996.

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Temporary Import Programs for Integral Export Services. The legal entities that have programs authorized by the SE, under the terms of the “Decree that establishes temporary import programs to produce export articles”, published in the DOF on May 3, 1990, amended by means of Decrees published in the mentioned informative organ on May 11, 1995, November 13, 1998, October 30, 2000, December 31, 2000, May 12, 2003 and October 13, 2003 and its subsequent amendments.

Prohibited subsidies examples

SUMMARY: Resolution 0152-2018/CDB-INDECOPI, published in the official gazette “El Peruano” on November 10, 2018, whereby definitive countervailing duties were imposed on imports of ethanol, in the form of denatured ethyl alcohol (fuel) or undenatured anhydrous ethyl alcohol with a maximum of 0.5% moisture content, originating from the United States of America, is REVOKED. Consequently, the aforementioned duties are hereby SUPPRESSED.

3. During the proceeding, the companies Murex LLC (hereinafter Murex) and Green Plains Trade Group LLC (hereinafter Green Plains), as well as the business associations U.S. Grains Council and Growth Energy, answered the “Questionnaire for the exporter and/or foreign producer” sent by the Technical Secretariat of the Commission4 . For their part, Sucroalcolera and Agrojibito S.A. (hereinafter Agrojibito) completed the “Questionnaire for domestic producers “5.

4. On August 27, 2018, the Commission approved the Essential Facts document, which was notified to the parties to the proceeding, in compliance with Article 12.8 of the Agreement on Subsidies and Countervailing Measures (hereinafter the SCM Agreement)6, 7.

Examples of foreign trade subsidies

Impose definitive countervailing duties on imports of ethanol, in the form of denatured ethyl alcohol, or undenatured anhydrous ethyl alcohol with a maximum of 0.5% moisture content, originating in the USA.

By Resolution No. 107-2017/CDB-INDECOPI published in the official gazette “El Peruano” on May 10, 2017, the Commission ordered the initiation of the investigation procedure on imports of ethanol originating in the United States2.

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In view of the above, in the course of the investigation procedure, the companies Murex LLC (hereinafter, Murex) and Green Plains Trade Group LLC (hereinafter, Green Plains), in their capacity as U.S. exporters of ethanol, appeared before the Commission and complied with submitting absolved the “Questionnaire for the exporter and/or foreign producer”.

During the course of the investigation procedure, the U.S. government, Green Plains and Murex, as well as the U.S. business associations U.S. Grains Council, Renewable Fuels Association and Growth Energy, raised several challenges against Resolution No. 107-2017/CDB-INDECOPI, by which the initiation of the present investigation was ordered.

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